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Losses can exceed your initial deposit
Bumi co-founder Nat Rothschild
Apple Inc
24Sep 18Sep 19Sep 20Sep 21 Sep
705 $
Facebook Inc
24Sep 18Sep 19Sep 20Sep 21 Sep
Google Inc
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750 $
But shares lose out to Google as investors want even more
APPLES iPhone 5 broke sales records over its
debut weekend, although it still failed to meet
Wall Streets expectations, sending shares in the
worlds richest company down while arch rival
Google hit an all-time high.
The latest version of Apples most profitable
product saw sales of more than 5m from Friday
to Sunday, beating the 4m iPhone 4S units sold
over the same period last year and making it the
fastest selling device in history. However, shares
in the company fell from last weeks record highs,
with investors disappointed at the sales, sending
Apple down 1.3 per cent and knocking 8.7bn off
the companys value.
[The 5m sale] compared to our 8m estimate,
said Gene Munster at investment bank Piper
Jaffray, noting that a short supply of iPhones had
hit sales, rather than lower consumer demand.
Apple stores in the US and UK ran out of stock
over the weekend, as excitement over the
phone beat the firms forecasts.
Chief executive Tim Cook said:
Demand for iPhone 5 has been incredi-
ble and we are working hard to get an
iPhone 5 into the hands of every cus-
tomer who wants one.
As Apples share price fell yesterday,
Google hit a new record price, passing lev-
els not seen for five years, as investors backed
its reliable search advertising business at
the expense of Facebook.
Google rose to a high of $749.99,
overtaking November 2007s $747.24 peak, while
Facebook dropped more than nine per cent,
reversing an upward trend in the social net-
works fortunes after chief executive Mark
Zuckerberg hinted at new growth areas two
weeks ago.
Facebooks image took another hit yesterday as
reports emerged that private messages on the site
were being displayed on public profiles. The firm
swiftly moved to refute the claims, saying the
messages had always been public, but were being
displayed differently.
But the timing could not have been worse for
Facebook, after influential US financial maga-
zine Barrons claimed it remained overpriced on
Saturday despite the share price falling by half
since Mays flotation.
Questions about Facebooks potential for
growth have repeatedly been raised in recent
months, with the firms efforts to improve adver-
tising on its mobile platform failing to impress
investors, while Googles adverts on mobile
searches remain lucrative.
Shares in Yahoo, the embattled web
company that recently appointed former
Google executive Marissa Mayer as chief
executive, were also boosted yesterday as
she prepared to unveil her turnaround
plan today. Mayer is expected to renew
efforts to improve Yahoos own search
and advertising platforms.
FTSE 100 t5,838.84 -13.78 DOW 13,558.92 -20.55 NASDAQt3,160.78 -19.18 /$ 1.62 unc / 1.25 unc /$ t1.29 -0.01
See Page XX
Bumi calls in Macfarlanes to probe Indonesian unit
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MINING group Bumi yesterday called in City law
firm Macfarlanes to investigate alleged financial
irregularities at its Indonesian operations, as the
firms share price plummeted almost 25 per cent
following the news.
The allegations at the FTSE 250-listed miner, co-
founded by financier Nat Rothschild, relate to Bumi
Resources, in which London-listed Bumi holds a 29
per cent stake.
The companys development funds, which focus
on infrastructure, will be at the centre of the
investigation. It is thought the irregularities relate
to the $286m (176.5m) of one-off accounting
writedowns that Bumi made last year in Bumi
Resources development operations. Mazars is
auditor to Bumi Resources.
Ari Hudaya, non-executive director of Bumi and
president director of Bumi Resources, yesterday
stepped down from the board with immediate
A source close to the Rothschild side of the board
said of the investigation yesterday: This is the first
stage in a long road to allow all investors, and not
just the Bakries, to share in the future profits of the
Deputy chairman of Bumi, Julian Horn-Smith,
yesterday told City A.M. that the board will form a
robust stand to ensure the matters surrounding
financial irregularities are resolved.
See Page 22
Tim Cook cited incredible
demand for the new handset
Follow me on Twitter: @allisterheath
Mitchell faces new rant threat
nConservative cabinet minister
Andrew Mitchell last night faced a
renewed challenge to his position after
the log of his altercation with a
Downing Street policeman was leaked
to the press. The chief whip admits
confronting officers last Wednesday
night after they refused to let him ride
his bicycle through the streets main
gates but has denied claims that he
called them plebs and morons.
But last night the Daily Telegraph
published the leaked police record of
the incident, which quotes him as
saying: Best you learn your f******
place... you dont run this f******
government... youre f****** plebs.
Prime Minister David Cameron had
attempted to draw a line under the
issue yesterday morning by giving
Mitchell his support.
Direct Line adds directors for IPO
nInsurance firm Direct Line Group
yesterday hired two new executives as
it prepares for its impending float on
the London Stock Exchange. Glyn
Jones, chairman of New York-listed
insurer Aspen Insurance Holdings, has
been appointed as the firms senior
independent director. Meanwhile Mark
Catton, who sits on the management
committee of RBS Group, has joined
as a non-executive director. Direct
Line chairman Mike Biggs said: Both
Glyn and Mark have extensive
leadership skills and financial markets
experience which will bring valuable
insights to the group and further
complements the capability of our
Business bank will not
start lending until 2014
BUSINESS groups last night gave a
cautious welcome to Vince Cables
announcement of a 1bn govern-
ment-backed bank for small firms
but criticised the timeframe and
lack of detail on its implementa-
The business secretary yesterday
committed the government to allo-
cating 1bn to the institution,
which will operate in the wholesale
market and support the supply of
loans to smaller firms through
existing banks. Full details will be
unveiled in the Autumn Statement
on 5 December, though it is unlike-
ly that the institution will be up
and running before 2014.
By bringing together all existing
support into a one-stop shop, and by
increasing the supply of capital to
firms that want to grow long-term,
the business bank has the potential
to support lending and help small
and medium-sized businesses to
grow, said John Cridland, CBI direc-
Meanwhile John Longworth, head
of the British Chambers of
Commerce, said the plan could be
one of the lasting legacies of this
government, and a key pillar of UK
competitiveness in the years to
The government must now work
Temasek considers StanChart stake
Singapore investment fund Temasek has
sounded out potential buyers for its 6bn
stake in Standard Chartered, potentially
reigniting talk of a takeover of the
emerging markets bank. The fund, which
is owned by the Singapore government,
had been judging buyer interest for its 18
per cent shareholding in recent months,
said people close to the situation.
UK and Canada to share embassies
Britain is to co-operate closely with
Canada to share embassy facilities
abroad, in a move that has raised
questions about the UKs commitment to
furthering diplomatic links with the EU.
William Hague signed an agreement in
Ottawa yesterday that will see Britain and
Canada co-operate when sharing facilities
and providing consular services.
Investors shift to derivatives funds
Investors are piling into specialised stock
market funds that use derivatives to boost
returns. A recent Deutsche Bank study
estimates that the assets of funds that
employ such strategies have climbed to
over $32bn (19bn) this year.
Camelot abandons Desmond battle
Camelot has abandoned its legal battle
against Richard Desmonds Health
Lottery which operates using a loophole
in the gambling legislation and
appealed directly to David Cameron to
protect the National Lotterys sales.
Silicon Roundabout going wrong way
Inventor James Dyson has called on the
government to back manufacturing firms,
not Google-like web companies, in an
explicit jibe at the coalitions digital strategy.
Oligarchs may bid to own all TNK-BP
BPs oligarch partners may consider
making a cash offer for all of the British
companys 50 per cent stake in their
Russian joint venture TNK-BP, making the
sale process more competitive.
Protesters hand ex-HMRC boss award
An after-dinner speech by the former head
of HMRC, Dave Hartnett, was interrupted
by protesters who awarded the retired
official with a lifetime achievement
award to corporate tax planning.
Key Galleon witness sentenced
A former Intel employee, Rajiv Goel, who
said he was deeply ashamed of his
insider trading avoided a prison sentence
yesterday for helping the government
catch and prosecute Galleon Group hedge
fund founder Raj Rajaratnam.
United gets first Dreamliner
United Continental Holdings has taken
delivery of the first of the 50 Boeing 787
Dreamliners it ordered, becoming the new
jets initial North American operator.
VINCE Cable yesterday used his
speech at the Liberal Democrat
conference to attack
Conservatives who desire a hire
and fire culture and get a thrill
from sacking people.
He held up the failure of
Adrian Beecrofts report on
employment law reform, which
proposed allowing no-fault
dismissals, as an example of how
his party had been able to
influence government policy.
We have seen off the head
bangers who want a hire and
fire culture and seem to find
sacking people an aphrodisiac:
totally irrelevant in a country
with flexible labour markets
which have created over a
million private sector jobs in the
last two years.
Instead, we have concentrated
on practical tribunal reform and
supported progressive firms who
want worker participation and
share ownership.
Cable said the Lib Dems were
driving through plans to slash
red tape, introduce binding votes
on executive pay and cracking
down on tax evasion.
Earlier this year Beecroft
called Cable a socialist and said
the Lib Dem should not have
been left in charge of business
Cable claims
Tories get thrill
from sackings
Cable said the bank will boost lending to manufacturers, exporters and growth companies
To contact the newsdesk email
ERE is a simple question. What
do you think would do more to
help the provision of finance
for small firms? Vince Cables
new state bank, which will begin its
operations in 18 months time, or a
radically improved tax system to
improve the provision of equity
financing and venture capital? In
other words, is the problem too little
debt or too little equity?
You may say Im missing the point
and that both are a problem. Perhaps.
But the truth is that debt financing
will always be harder to come by for
start-ups than equity. Small business-
es are extremely risky. Most go bank-
rupt quickly. Few (other than
one-person bands) are still in business
after five years. Only a small propor-
tion go on to make it big.
The chances of a lender losing all of
its money is very high, which means
Britain needs more venture capitalism not a state bank
that either small business lending
becomes a mortgage in all but name
with directors homes used as collat-
eral or a prohibitively high interest
rate needs to be charged. Equity
makes much more sense: the capital
provider is still likely to lose their
cash, but also stands to benefit from a
potentially huge upside.
Of course, some projects are easier
to understand than others. A success-
ful restaurant may wish to borrow
more to expand; the decision to lend
it some funds may be less risky than
lending to a brand new entrant.
Perhaps critics are right to say that
banks need to become better at pick-
ing the right projects to which to lend
though Im sceptical that there used
to be a golden age. Banks relied on
locally based managers, of course,
rather than centralised systems,
which would have helped in some
cases but many modern start-ups
are highly sophisticated, and the kind
of scale and specialism required to
gauge their viability means that the
old model is obsolete. If it is hard for
veteran venture capitalists to assess
the chances of a small business, it will
be nigh on impossible for main-
stream retail banks to get it right.
If it is true that plenty of good proj-
ects go unfinanced, the real solution
is to allow more banks to enter the
market to pick up such opportunities.
complex. Abolishing capital gains tax
entirely would help, for a start, by
boosting returns to successful
investors. Eventually, Britain must
become more like America, with a far
greater and more diverse army of VCs
financing new firms. Once again, the
governments plan is the wrong
answer to the wrong question.
It was great to see a full-length BBC2
TV programme on Friedrich von
Hayek, one of the greatest economists
of the twentieth century, last night.
Had politicians listened to his ideas
on the business cycle, they would
have realised that excessively easy
money always leads to bubbles and,
eventually, to economic implosion.
However, not only is the government
making this extremely difficult by
refusing to grant new licences to new
entrants but regulators have
increased capital requirements for
small business loans, dramatically
reducing their profitability.
Astonishingly, it is therefore govern-
ment policy to reduce the availability
and increase the cost of small busi-
ness lending. The governments
refusal to address its own self-defeat-
ing policies is the reason why it now
wants a state-backed bank. Im willing
to bet that it will end in a frenzy of
politically motivated bad loans and
misallocated capital, as is always the
case with state-directed banks. Poor
taxpayers will end up subsidising rich
It would make more sense for the
government to boost equity investing
in start-ups. Current schemes are too
swiftly to gets the bank up and run-
ning so that it can start helping small
and medium-sized businesses as
quickly as possible, he added.
However Mark Littlewood, director
general of the Institute of Economic
Affairs, said the proposed institution
is unlikely to have any impact on the
short-term problems faced by busi-
nesses and that it will be seven
years after the early events of the
crash before the first loans are made.
The government should not be tak-
ing the risks from business lending
that banks are not willing to bear
themselves, he added.
Meanwhile last night Treasury
sources confirmed to City A.M. that
the government is set to guarantee
the 1bn order for new trains for the
Crossrail as part of a new scheme to
boost investment in infrastructure.
Danny Alexander, chief secretary to
the Treasury, will today announce
that the privately-funded part of the
deal will receive government backing
in an attempt to reduce lending costs
for the order, reduce the chance of a
delay and bring spending forward.
THE FORUM: Page 22

The new jobs website for London professionals
Fund is set to cut its forecast for
global growth next month when it
updates its projections for the world
economy, the head of the IMF said
We continue to project a gradual
recovery, but global growth will
likely be a bit weaker than we had
anticipated even in July, and our
forecast has trended downward over
the last 12 months, IMF managing
director Christine Lagarde said in a
speech previewing meetings in
Tokyo on 12-14 October.
The biggest factor weighing on the
world economy was uncertainty
among investors over whether
policymakers in advanced
economies will deliver on promises,
Lagarde added.
In July, the IMF cut its global
growth projection for 2013 to 3.9 per
cent but left its 2012 forecast
unchanged at 3.5 per cent.
Lagarde said uncertainty over the
Eurozone was the greatest risk to the
world economy, but the possibility of
a so-called fiscal cliff of expiring tax
cuts and automatic government
spending reductions next year in the
US was a also a serious risk.
She again called on Europe to
move towards a banking union. We
continue to believe it should be
initiated as soon as possible, she
Lagarde says
IMF will lower
growth outlook
THE PROPOSED 30bn mega-merger
between aerospace giants BAE and
EADS faced new barriers last night as
the UK parliament launched an
inquiry into the plan and the German
government privately raised doubts
over the deal.
The House of Commons defence
select committee confirmed that it
would take the unusual move of hold-
ing hearings into the merger of two
private companies.
It will take evidence during October
and November and consider the
impact that the deal would have on
the protection of British sovereign
capabilities, defence exports, jobs and
trade and foreign policy.
The merger of two such large
defence contractors would have a sig-
nificant and strategic impact on their
relationships with UK, US and
European governments, the commit-
tee said in a statement.
A source close to the merger said the
inquiry was not unexpected.
Meanwhile documents obtained by
faces inquiry as
barriers mount
Reuters show that Berlin is concerned
about its ability to protect local jobs if
the deal goes ahead. The German
stake in EADS is currently held by
Daimler but the state development
bank had been set to acquire part of
this holding before news of the merg-
er talks leaked earlier this month.
Britain has been broadly supportive
of the merger and David Cameron has
held discussions with French and
German leaders to ensure UK interests
are protected.
Yesterday business secretary Vince
Cable said he had no major objections
to the firms combining.
BAE Systems PLC
24Sep 18Sep 19Sep 20Sep 21 Sep
345.0 p
JOB losses at RBS will be even
greater than first expected, the
majority-state owned bank said
yesterday, telling shareholders
that the investment bank will be
hit particularly hard by the fresh
A total of 3,800 jobs in the
markets and international
banking business will go by the
end of next year, up 300 from
Januarys estimates of 3,500.
Of those, 3000 are expected to
have gone by the end of this year.
Those job losses are part of a
wider restructuring, which
RBS to cut 3,800 investment
banking jobs by end of 2013
BY TIM WALLACE includes the sale of RBSs UK
corporate broking arm to Jeffries,
the sale of its Dutch business to
ABN Amro and the sale of its Asia-
Pacific equities business to Asian
investment bank CIMB.
The jobs announcement was
part of a presentation by John
Hourican, who heads the markets
and international banking
business, in which he told
investors that the restructuring
are firmly on track.
The overhaul is part of a long-
term plan to sell the bank back
into the private sector.
RBS shares fell 1.56 per cent
over the day to 271.5p.
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RBS chief Stephen Hester has been charged with turning the bank around after its bailout in 2008
HEN Nat Rothschild set about
raising finance in the City last
year for a special purpose
acquisition company named
Vallares, he was met by investors with
open arms.
Going to the market through advisers at
Credit Suisse, JP Morgan and Evolution
(now part of Investec), the heir to the
Rothschild dynasty rose above the woes
that had afflicted many new issues dur-
ing the year to raise 1bn without a hint
of trouble.
Partly investors believed in the business
case; partly they were backing the busi-
ness skills of former BP chief Tony
Hayward as well as former Goldman
Sachs executive Julian Metherell. But
above all, the Nat Rothschild name was
essentially seen as copper-plating the
business plan. If he were to try the same
thing now, Rothschild would almost cer-
tainly be told to beat a hasty retreat.
The problem for Rothschild is the per-
formance of Bumi, the first of two special
purpose vehicles he has been responsible
for putting together. It is a thermal coal
mining group he has part-owned since
July 2010 with Indonesias Bakrie family.
The relationship has been a troubled one
to say the least, with Rothschild last year
very publicly calling for a radical clean-
ing up of PT Bumi Resources, the Jakarta
affiliate of Bumi and one of the worlds
biggest coal miners.
Bumi is already suffering from a slump
in the price of the coal as economic
growth in China falters. But such a phe-
nomenon might have been manageable
had the company not suffered also from a
slump in good business practice.
Yesterday shares in the group fell around
25 per cent after two days of heavy falls as
it revealed it had discovered irregularities
in the accounts of PT Bumi Resources.
Bumis share price is now at a fraction of
the value at which shares were issued to
investors in July 2010. They are worth
around 150p now compared to 1,000p
then, prompting some to describe the
flotation as one of the worst IPOs of all
time. Those that still support
Rothschild on the Bumi board, like
senior independent non-executive
director Julian Horn-Smith, see the
current situation as an opportunity to
reassert good corporate practice at the
For London, Bumis problems could
not have come at a worse time. There
have been few new issues since
Glencore last year, with investors sit-
ting on the sidelines after being
burned by a series of poor performing
flotations and only really coming out
to play in big numbers to support a
name like Rothschild. Yesterday there
was exasperation and dismay at the
dawning that even these type of flota-
tions, which depend on a long-estab-
lished names raising funds for an
acquisition, might now be out of
Bumi PLC
24Sep 18Sep 19Sep 20Sep 21 Sep
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Bumis issues are a
further blow to IPOs
Bumi is the latest in a string of disappointing UK floats
Tensions have been brewing
at the miner for some time
Bumi and its Indonesian unit has
been under strain in the past.
Bumis man in London, Nat
Rothschild, last year criticised the
management of the Bakrie family,
which holds a 29 per cent stake of
Bumi Resources, and called for a
radical cleaning up of the
Indonesian company in a letter to
the Bakries that was subsequently
Yesterday Sir Julian Horn-Smith
said he and other independent
non-executive directors of Bumi
ordered the legal investigation
into the claims after receiving
information very recently.
Horn-Smith, a former director
of Lloyds Banking Group, quashed
fears that the irregularities were
linked to Bumis UK operations,
and said yesterday that some
conclusions from the
investigation could hopefully be
drawn before the end of the year.
Financier Rothschild amassed a
ring of influential directors to
guide Bumi through its IPO,
including Horn-Smith, Lord
Renwick, Steven Shapiro, Graham
Hearne, James Campbell and
Robert Sinclair, some of whom
still sit on the Bumi board today.
BILLIONAIRE American investor
Patrick Soon-Shiong is preparing a
bid for Anschutz Entertainment
Group (AEG), owner of The O2
complex on Greenwich Peninsula,
reports suggested last night.
Soon-Shiong is expected to join
forces with financial services
group Guggenheim Partners to
launch a bid for the company,
which operates entertainment
venues across the world and in
most key US markets.
AEG said last week that it was
exploring a sale of the company
and had retained Blackstone
Advisory Partners to assemble a
list of potential bidders.
This could result in the break-up
of the group, which includes one
of the worlds biggest concert
promoters as well as stakes in
sports teams such as LA Galaxy
football team, which David
Beckham plays for, and a wide-
ranging property portfolio.
The group, owned by founder
Phil Anschutz, has been valued at
more than $6bn (3.6bn).
Soon-Shiongs interest in the
firm is thought to have been
increased by AEGs planned
construction of a new American
Football stadium in downtown Los
Angeles, raising the prospect that
he could help bring back a NFL
franchise to the city.
LA billionaire
targets The O2s
parent company
Deputy chairman Sir Julian Horn-Smith
Co-chairman Samin Tan Co-chairman Indra Bakrie
Non-exec director Lord Renwick
THE BOARD of Xstrata is looking
for reassurance from Glencore
that the billed merger of equals
does not become a takeover after
Xstrata chief Mick Davis steps
down, according to a source with
knowledge of the situation.
Discussions surrounding the
merger are currently focused on
management succession after
Davis departs and the retention of
key Xstrata executives, said the
The board of Xstrata is this week
discussing the revised merger
offer made earlier this month,
which proposed that Glencore
chief Ivan Glasenberg lead the
new group after a six month
interim period under Xstratas
But Xstrata insiders are
concerned about which directors
of the Swiss mining company will
sit on the board of the new group,
so the merger of equals does not
become a takeover by Glencore.
The mining giant last week
asked for an extension of the
Xstrata wants
reassurance on
deadline to 1 October, to thrash
out the final details of
management composition and
remuneration. The merger was
first unveiled in February.
Richard Knight, analyst at
Liberum Capital, yesterday gave
the deal an 80 per cent chance of
completion, adding that
maintaining a merger balance is
a big goal for certain Xstrata
Shares in Xstrata closed 0.5 per
cent down yesterday at 999.8p,
while Glencore also lost ground,
falling 2.17 per cent to close at
Xstrata PLC
24Sep 18Sep 19Sep 20Sep 21 Sep
AILING retailer JJB Sports yesterday
confirmed it will appoint adminis-
trators after failing to receive an
offer for the entire company, putting
up to 4,000 jobs at risk.
Shares in the group which were
worth a total of as much as 1bn a
decade ago were suspended yester-
day and remaining investors, includ-
ing US tycoon Bill Gates, saw the
value of their holdings wiped out.
KPMG, which has been overseeing
the sale and is also lined up as
administrator, said it is still in talks
with potential buyers and expects to
sell parts of JJBs assets through a pre-
pack administration over the next
few days.
The offers received include offers
to acquire certain of or substantially
all of the trade, assets and brands of
the group. However, the board notes
that it does not expect to receive an
offer for the shares of JJB, it said in a
JJBs 180 stores will continued to
trade during the pre-pack process
but as many as half of the stores are
expected to be closed in the sale,
endangering thousands of jobs.
Mike Ashleys Sports Direct remains
one of the frontrunners to buy the
struggling retailer, although it is said
to be interested in less than half of
the stores. Irish conglomerate
Stafford Group is also thought to still
be in the running to buy parts of the
The Wigan-based retailer founded
by ex-footballer Dave Whelan in
1971 was forced to put itself up for
sale in July after battling with falling
sales and failing to secure fresh funds
from investors.
Richard Fleming, head of KPMGs UK advi-
sory team, was yesterday lined up as the
administrator to Wigan-based JJB Sports,
along with restructuring partners Brian
Green and David Costley-Wood.
For Fleming and his team, the sportswear
retailers impending collapse must feel like
Groundhog day after having already twice
attempted to steer the beleaguered compa-
ny from administration. KPMG rst
arranged a company voluntary agreement
(CVA) for JJB in 2009 and again in 2011,
when landlords agreed to forfeit around
60m in rent to stave off collapse of the
rm. But the group was living on borrowed
time and JJB is now set to be put through a
pre-pack administration, where its assets
are sold ahead of the formal insolvency
Fleming and Green, who is based in KPMGs
Manchester ofce, have also been busy
averting collapse at other rms and were
last month involved in securing a crucial
CVA at the debt-laden budget hotel chain
Travelodge. The deal saw landlords agree to
a rent reduction at over 100 hotels.
Fleming joined KPMG in 2003 and was
made head of the UK advisory team in
April. He has also acted as lead administra-
tor to MF Global UK, Peacocks and Blacks.
JJB Sports PLC
Jul Aug Sep
Tesco displaying recovery signs
after its shock profit warning
TESCO, the worlds third biggest
retailer, said a recovery plan to
recapture home market share was
making an impact after a shock
profit warning, backing up industry
data showing evidence of success in
its fight-back against rivals.
Once one of the most consistent
British companies in terms of
earnings growth, Tesco stunned
investors in January with its first
profit warning in over 20 years.
In April it said it would invest
1bn in its UK business to stem a
steady decline in UK market share
to Asda, Sainsbury and Morrisons.
In June, Tesco reported a 1.5 per
cent fall in first quarter underlying
UK sales.
Tesco is not due to update on
second quarter trading until 3
October but monthly industry data
from market researcher Kantar
WorldPanel has shown its UK
grocery market share has stabilised,
though analysts say the firm has
been promoting aggressively.
Britains largest retailer, which
accounts for about 1 in every 10
spent in UK shops and makes over
70 per cent of its trading profit
domestically, said it has recruited
more staff, increased training,
smartened its stores and invested
more in lower prices, better quality
products, marketing and its
internet, smartphone and click &
collect services.
Were really pleased that were
starting to see the green roots of
progress but it is early days and
weve got a huge amount still to go
after and to do, said David Hobbs,
Tescos UK operational strategy and
business planning director
Half expected to go
JJB Sports calls
time as it hires
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Forex, spread bets and CFDs are high risk
and losses can exceed your initial deposit.
GLOBAL financial authorities yester-
day moved to extend their reach
beyond regulated institutions and
into all parts of major financial
The officials warned that problems
building in lightly regulated units of
financial conglomerates could slip
under the radar and threaten the sta-
bility of the overall entity.
The Basel Committee, the
International Organisation of
Securities Commissions and the
International Association of
Insurance Supervisors also said
national authorities must work more
closely together to avoid blind spots
being developed when such conglom-
erates spread across borders.
That means regulators will be
expected to make stress tests group-
wide, rather than simply covering the
regulated parts of a finance firm, or
just those parts within the same
country as the national regulator.
The new guidelines are also intend-
Watchdogs call
for wider power
BY TIM WALLACE ed to ensure the culture within a
banking groups extends to all corners
of the conglomerate.
This means firms must develop a
sound group-wide risk management
culture, to establish a risk appetite
policy and define appropriate group-
wide risk tolerance levels, even cover-
ing outsourced activities, and
bringing off-balance sheet activities
within the scope of group-wide super-
And the group of regulators warned
that unregulated entities, like sub-
sidiaries or holding companies associ-
ated with the financial groups, could
present a huge range of threats to the
overall group.
These include contracts linked with
the group; interconnectedness of the
firms; risk exposure; risk concentra-
tion; risk management; intra-group
transactions and exposures; strategic
risk; and reputation risk, the author-
ities warned.
It is intended that these issues be
considered in the widest sense, they
Basel Committee chairman Stefan Ingves fears major firms could slip between local regulators
FRENCH bank Credit Agricole
could pay an extra 600m to
700m (478m to 558m) into
its Greek Emporiki unit before
it can sell it, according to
reports yesterday.
The French lender, which is
trying to exit Greece after the
countrys banks were badly hit
by the sovereign debt crisis
across the single currency, has
already injected 2.3bn into its
local unit.
Greeces central bank is
demanding that the group
recapitalises its loss-making
unit, acquired in 2006, by
Credit Agricole faces obstacles
to sale of Greek unit Emporiki
BY CITY A.M. REPORTER another 600m to 700m
before it will approve the sale,
the Wall Street Journal said.
A spokeswoman for Credit
Agricole declined to comment
Credit Agricole has received
three offers by Greek banks
National Bank, Eurobank and
Alpha Bank, which would pay
just 1 for the unit.
A decision is expected later
this week, or as early as the
French lenders board meeting
The bank posted a surprise
quarterly profit last month,
helped by its smaller exposure
to the Eurozone.
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THE EUROPEAN Commission (EC)
wants ING to commit to lay out a
firm plan to repay 3bn (2.39bn)
of the bailout money it received
from the Dutch government in
2008, it emerged yesterday.
The bank was bailed out to the
tune of 10bn in the financial
crisis, but has only paid back 7bn
of those funds.
An ING spokesman said the
bank remains committed to
repaying the Dutch state as soon
as possible, but needs to
maintain strong capital ratios
given the uncertain economic
EC wants ING
The new
jobs website
for London
Greeks deny 20bn finance hole
nThe Greek government yesterday
denied that it would need to plug a
20bn gap in its finances to appease
international bailout lenders a
claim made in German magazine Der
Spiegel. In a briefing note the
government said that its shortfall
would be dealt with by austerity
measures that are currently being
finalised. Negotiations are ongoing in
Athens this week, in a bid to find
some form of agreement over
11.9bn worth of fresh cuts to
Van Rompuy calls for progress
nEconomic reform programmes
across Europe must be continued
with renewed vigour, European
Council president Herman Van
Rompuy insisted yesterday. The
European Union can not afford to be
complacent even as the 27-nation
bloc makes progress building a
framework to protect itself from
financial shocks, the senior Brussels
official said in a video published on
his website.
Italy needs long-term efforts
nMario Montis technocrat Italian
government has laid the base for a
reform effort that must be pursued
for many years if Italy is to emerge
from stagnation, the top economist of
the Organisation for Economic
Cooperation and Development
(OECD) said yesterday. As OECD
chief economist, the message is to
carry on with the reforms, Pier Carlo
Padoan, who is Italian, told Reuters.
THE EURO tumbled against the dollar
yesterday after a widely regarded
measure of business confidence sug-
gested that the single currencys
largest economy could be heading for
Germanys Ifo Institute revealed that
its latest business climate index
declined for the fifth straight month
in September. Coming in at 101.4,
down from 102.3 in August, the head-
line index sunk to its lowest level
since early 2010.
The score is still above its long
term average, yet the decline is
worrying as it suggests that the
Eurozones powerhouse econo-
my could be failing to
prop up its other strug-
gling states.
While Germany
might have avoided a
recession in quarter
three, it seems like
only a matter of time
before the economy
starts to contract, com-
mented Jennifer McKeown
Euro sinks after
German firms
morale worsens
BY JULIAN HARRIS of Capital Economics.
This will make support for the
peripheral economies even more diffi-
cult to muster.
The euro sank over half a per cent
during trading following the report,
touching a low of $1.2894. It recovered
slightly later in the day but was still
anchored at $1.2930 last night.
The dip in confidence may be more
related to fast-changing political
events in the Eurozone rather than
deteriorating business fundamentals,
however. The second half of responses
handed in after the (positive) deci-
sion of the German Constitutional
Court regarding the ESM and
Fiscal Pact on 12 September were
more upbeat than the earlier
ones, said Timo Klein of IHS
Global Insight.
The data is nonetheless
bad news for German
Chancellor Angela Merkel,
who faces a fight to hold
off challengers to her
position during next
years general election.
Brussels will lure private cash
to bulk up bailout mechanism
GERMANYS government yesterday
played down reports that Europes
new rescue fund could be leveraged
four-fold to 2 trillion.
Yet a spokesman acknowledged
that discussions were underway in
Brussels on giving the European
Stability Mechanism (ESM) certain
instruments to lure private investors
and thus boost the fund.
German weekly Der Spiegel
reported at the weekend that
governments could boost the
firepower of the ESM to 2 trillion by
opening new leverage options such
as offering bond investors partial
protection in the event of a default.
But finance ministry spokesman
Martin Kotthaus said the reports
figures were illusory.
When I read these figures,
specific volumes, then we need to
say clearly that this is not feasible in
any form, Kotthaus said. The
number is neither understandable,
feasible, nor recognisable.
He added: Member states are
discussing the possibility of the use
of the two financial instruments,
which currently are attached to the
EFSF [the bailout fund that is being
superseded], and to attach them to
the ESM.
Eurozone officials could also set
up one or more co-investment funds
to attract public and private funding
to boost the ESMs seed money.
PORTUGALS government
yesterday threatened it would
have to hike income taxes after
bowing to increasing pressure
from protesters to scrap increases
in workers social security
Prime Minister Pedro Passos
Coelho said his administration is
forced to find ways to achieve
budget targets that are conditions
of the debt-burdened countrys
ongoing bailout programme.
As long as Portugal maintains
its level of fulfilment, we know
Portugal mulls higher income
tax in bid to control its deficit
BY JULIAN HARRIS that we will have the support of
our external partners, Coelho
said. If we do not, we put at risk
our fulfilment, and these
guarantee mechanisms will cease
to exist.
Plans to increase social security
contributions to 18 per cent from
11 per cent for all workers in 2013
sparked large protests, forcing the
government into a U-turn.
Yet workers may also be hit by
new plans, which could see
income tax rise as well as
downward pressure on wages for
government sector workers in the
struggling Eurozone state.
EUROPEAN commissioner Michel
Barnier called for jail terms for
interest rate manipulators
yesterday, while a top US regulator
called for the benchmark interest
rate to be based on real
transactions, not estimates.
Barnier told a European
parliament hearing that an EU-
wide ban on manipulation would
get rid of this everything is
allowed attitude.
Any manipulation of the rates
has a very bad impact on public
Michel Barnier calls for a tough
crackdown in the wake of Libor
confidence and undermines all we
are trying to do to improve honest
and transparency in the banking
Meanwhile Gary Gensler from
the US Commodity Future Trading
Commission told MEPs only a
major overhaul of the Libor setup
would restore faith in the system.
That needs to address the lack
of actual loans used to formulate
Libor, the lack of regulatory
oversight and the conflict of
interest created when banks are
affected by their own Libor
submissions, he said.
Prime Minister Pedro Passos Coelho was forced into a U-turn by widespread protests
The data is a blow to Merkel
SHARES in British mobile payments
firm Bango soared yesterday as it
launched a tie-up with Facebook to
let the social networks users make
purchases on smartphones.
The service, which allows people
to purchase extra content on
Facebook such as game extensions
and virtual gifts and charge it to
their monthly network bill, will be
operated by Bango in the UK, US
and Germany.
Bangos technology, known as
mobile web carrier billing, is more
convenient than paying via credit
cards, and means more people com-
plete transactions, according to the
Shares in Aim-listed Bango rose
seven per cent as the service
launched yesterday, having risen by
40 per cent when the deal was
announced in February.
Chief executive Ray Anderson,
who founded the company in
Cambridge in 1999, said: As the
mobile web experience has matured
and improved, consumers are
increasingly keen to purchase digi-
tal goods on mobile devices. By
ensuring a frictionless payment
experience, Bango technology is
unlocking the business potential of
the mobile web.
Bango lifted by
mobile tie-up
with Facebook
BY JAMES TITCOMB Anderson said 77 per cent of trans-
actions made through Bango are
completed, compared with 40 per
cent for those made with credit
cards or by text message.
The new payments system will pro-
vide a boost to Facebooks mobile
revenues, which chief executive
Mark Zuckerberg sees as crucial to
the companys success. The firm has
struggled to make money from
mobile advertising and is looking for
new sources of revenue, including
game purchases.
Bango has seen shares rise consis-
tently over the last year as it launch-
es tie-ups with mobile software
developers to allow in-app purchases
on smartphones. It now has clients
including Amazon, Microsoft and
Electronic Arts, although the tie-up
with Facebook is its biggest deal to
Interviews by Phoebe Loveland
Yes I do, as it allows me to buy online when-
ever and wherever I want. I also know that if I
ever have a problem with a purchase it is easy to contact
someone on the same device and ask for help.
These views are those of the individuals above andnot necessarily those of their company

I have never used my mobile phone to com-

plete a payment; I prefer more straightfor-
ward methods like cash and credit cards. I just consider
them safer.
I am always cautious online and would only
use a mobile phone for secure websites that I
know I can trust. Online banking is great!

Retailers say mobile commerce is

driving high street renaissance
HIGH street stores are seeing rising
sales driven by mobile commerce,
with 1 in every 10 spent coming
via a mobile channel, according to
research from the Centre for
Economics and Business Research
(CEBR) released today.
The report, conducted by the
CEBR on behalf of software
company Netsuite, said that
mobile sales including purchases
made on smartphones and tablets,
using mobile discount vouchers, or
BY JAMES TITCOMB after products were researched on
mobiles are set to grow 23 per
cent next year and already account
for 45bn in sales. This amounts to
just under 10 per cent of all high
street revenue.
The report also said that one in
five purchases come from mobiles
among stores with smartphone
apps or websites that are optimised
for mobiles.
High street retailers 200 of
which were surveyed for the CEBRs
report are optimistic about next
year despite the difficult economic
environment, with 87 per cent
predicting a rise in sales next year
and an average sales rise of 10 per
cent expected.
In the context of a difficult
macroeconomic climate, retailers
expectations seem very positive and
may ultimately prove to be
somewhat optimistic but its clear
that the importance of alternate
revenue streams such as mobile
commerce can be a crucial
component for retail success
moving forward, the CEBRs Colin
Edwards said.
Bango PLC
24Sep 18Sep 19Sep 20Sep 21 Sep
177.5 p
Retailers expect
23% growth
in mobile
over the
next year
87% of high street
stores predict revenue
growth over the
next year with an
average sales
increase of 10%


said its probe of the countrys mar-
ket for company audits had not
uncovered any evidence so far of col-
lusion among the Big Four account-
ing firms over market share.
Yesterdays paper is the watch-
dogs first comments of substance
since it formally launched its inves-
tigation last year, with preliminary
findings due in November.
The probe looks at how the coun-
trys top 350 listed companies buy
audit services, and the commis-
sions latest working paper studied
whether the Big Four accounting
firms KPMG, Ernst & Young,
PricewaterhouseCoopers and
Deloitte had an understanding
over dividing market share.
Accordingly, whilst many of the
market conditions conducive to
tacit collusion in relation to market
share appear to be satisfied, we do
not currently have the further evi-
dence necessary to establish that
there has been tacit coordination,
the commission said in a paper yes-
The paper will be welcomed by the
Big Four, which check the books of
Watchdog says
no signs yet of
audit collusion
nearly all of Britains blue chip com-
panies and say the market is highly
competitive, as shown by more fre-
quent tendering and rising pressure
on fees.
Smaller auditors such as Grant
Thornton are set to be disappointed,
having told the watchdog the highly
concentrated market makes it easier
for accounting firms to monitor
their rivals.
Some firms have asked that the Big
Four firms pricing of audit services
are scrutinised by competition bod-
Many companies have been using
the same auditor for decades,
prompting UK lawmakers to call for
the competition probe in the first
The European Commission has
also proposed a draft EU law to cre-
ate more choice of auditor for com-
The UK watchdog said its view on
tacit collusion could change if its
ongoing probe came up with new
Between 2002 and 2010, the Big
Four firms have consistently carried
out the audits for more than 90 per
cent of FTSE 350 companies, the
commission pointed out.
BRITISH insurers yesterday warned
the public to take precautions
against flooding as torrential rain
threatened to result in hefty
The summer was marred by wet
weather and 2012 is on track to
leave insurers with the largest bill
for flood damage since 2007.
Sixty-five areas of England are
currently on flood alert and the
Association of British Insurers said
the public should make sure they
have insurers details close to
hands and report damage
The warning comes at a crucial
time for the industry, as it is
currently locked in negotiations
Insurers count the cost of an
early end to summer weather
with the government over a new
agreement to provide flood cover
for most homes.
The existing deal, which expires
in 2013, sees the industry provide
affordable cover on a near-
universal basis, including to homes
that are at high risk of flooding.
Simon Douglas, director of AA
Insurance, called for action: There
are 200,000 UK homes at serious
flood risk, and 2.4m homes at some
risk of flooding from rivers or the
sea. The majority of them have
been able to insure their homes
thanks to the agreement, but that
ends on 30 June next year.
Theres little sign yet of a
replacement. These families must
be wondering whether they will be
able to find affordable insurance.
Pedestrians walking over Waterloo Bridge were soaked by yesterdays rain
HSBC increases lending despite
rejecting government support
HSBC raised lending to small
firms over the last nine months,
and yesterday announced another
round of targets on SME credit,
arguing that it can do its bit to
help the economy without
needing support from the
Rival banks including Barclays,
RBS and Lloyds have all cut
interest rates to businesses and
households in recent months, as
they can access cheap cash from
the governments funding for
lending scheme (FLS).
But HSBC yesterday revealed it
had made loans worth 4bn to
small exporters so far this year,
and intends to make at least
another 1bn in the final quarter,
despite turning down the offer of
state aid.
The banking giant has provided
gross new lending of 6.3bn to
SMEs in the last nine months, an
increase of eight per cent on the
It insists it has such a strong
depositor base that it can fund
itself cheaply without government
help, in contrast with its rivals
which have happily signed up to
access the cheaper funding.
HSBC also argued that focusing
lending on firms with an
international outlook helps the
bank, predicting accelerating
growth in trade and GDP from
In the future trading
internationally will be critical, not
only for the many British
companies who want to remain
competitive, but also for the wider
UK economy, said HSBCs Jacques-
Emmanuel Blanchet.
ABERDEEN Asset Management yes-
terday reported a 2bn summer
inflow into its high margin equity
business but failed to prevent a
100m slide in net new business.
The 2bn of new flows into
equities during July and August was
offset by declines in its fixed
income portfolios and Aberdeen
Solutions offering, which had a
collective outflow of 2bn.
Outflows of 100m from its
money market funds took total net
new business into negative
The 100m slowdown meant
total outflows for the 11 months up
to the end of August 2012 totalled
200m, an improvement on the
800m of net outflows for the year
Equity inflows over the two
months were biased towards higher
margin pooled products, which the
firm predicted would add
Aberdeen gets
a lift from high
margin equities
approximately 10m of annualised
recurring fee income.
Aberdeen chief executive Martin
Gilbert said: With uncertainty
surrounding the global macro-
economic situation our disciplined
and fundamental approach to
investing continues to attract flows
from a wide range of clients from
around the world.
Our strong performance across a
variety of capabilities and products
means we remain well positioned to
meet the needs of investors.
Canaccord Financial boosts UK
wealth business with Eden buy
Aberdeen Asset Management PLC
24Sep 18Sep 19Sep 20Sep 21 Sep
312 p
Net ows were -0.1bn, but this masks a strong +2bn into high margin
equities (ahead of our three-month forecast of 1.5bn) and a weaker -1.3bn in
low margin xed income (behind three-month forecast of -0.3bn).


UPDATE? By Michael Bow


Strong high margin ows into Asia Pacic, Global EM and Global
Equity continued into Q4. Gross inows into GEM did slow versus Q3 as planned, but
net ows actually look to be on a better run rate due to better retention.

Equities inows surprise on the upside at 2bn for July/August with
encouragingly good diversication away from just GEM. However, the share has
been a very strong performer so we could see a little bit of prot taking.


Moodys praises regulation advice
nStricter liquidity and capital rules
will help keep banks safe and stable in
the future, credit ratings agency
Moodys said yesterday. But it also
warned that only effective supervision
will make the rules work to their full
potential. The Basel committees core
principles were adjusted earlier this
month, increasing the number of
principles from 25 to 29. Banks are to
be assessed on 39 criteria a move
Moodys said underlines the need for
close supervision.
Caterpillar cuts profit forecast
nCaterpillar, the worlds largest
maker of earth-moving equipment,
last night cut its 2015 earnings
forecast, citing weak economic
conditions around the world. The
revised forecast comes as prices for
coal and iron ore have dropped
sharply this year, causing many of
Caterpillars customers in the mining
sector to rethink capital expenditures.
Total looks to Africa for boost
nFrench oil major Total has said a
string of projects in Africa will fuel a
25 per cent rise in output over the
next five years. At its annual investor
day in London, Total also announced it
had joined the race to exploit the
potentially huge resources offshore
Mozambique in east Africa. The firm
also revealed plans to spend 1.2bn on
improving its refinery in Belgium.
Aberdeen chief executive Martin Gilbert is pushing into higher margin equity products
HEDGE fund Man Group yesterday
set the ball rolling on a corporate
restructure announced in July by
confirming details for a new
holding company referred to as
New Man.
The business, one of the biggest
fund managers in the UK,
published further details to
investors yesterday on plans to use
New Man, or Man Strategic
Holdings, as the company is
officially incorporated, to replace
the current holding company.
Man will exchange existing
ordinary shares for shares in the
new company on a one-for-one
Man Group confirms plans for a
replacement holding company
basis, and will trade in exactly the
same way as the existing Man
shares on the London Stock
Exchange. The shares are expected
to list on 6 November, pending
shareholder approval on 17
The move is a routine
housekeeping exercise for the
business to help give it more
financial flexibility and room to
maintain its current dividend
The UK Listing Authority
yesterday approved Mans
prospectus to admit up to
1,830,000,000 New Man ordinary
shares to the premium listing of
the LSE.
Canaccord recently hired
Alexis de Rosnay
CANACCORD Financial, the owner of
corporate broker Canaccord Genuity,
yesterday announced it had snapped
up UK boutique wealth manager
Eden Financial in a 12.8m cash deal.
The firm will add Eden, which has
835m of assets under management,
to its existing UK wealth manage-
ment platform Collins Stewart
Wealth Management, boosting the
platforms assets to 9bn.
The firm said the deal, which will
see 7.68m paid up front in cash with
a further 5.12m paid a year later
dependent on revenue retention,
would add more scale to its wealth
management business.
Costs of the restructure are
set to total 3.3m, and are
expected in the third
UK and Europe chief
executive Alexis de
Rosnay said the expanded
client base would benefit
from a wider variety of
investment opportunities.
Collins Stewart Wealth
Management is a divi-
sion of Canaccord
Wealth Management, which is owned
by Canaccord Financial.
In a separate development, Mark
Dickenson, deputy head of corporate
broking at Canaccord Financials
subsidiary Canaccord Genuity,
has parted company with the
Dickenson is thought to be
reviewing a number of other
opportunities after his departure
last week.
LAST years winner was the
imaginatively titled Bad
Government by Henrietta
And tonight Michael Portillo
will announce the shortlisted
artworks for the 2012 annual
Threadneedle Prize for Painting
and Sculpture.
The prize, sponsored by the
London-based investment man-
ager Threadneedle Investments,
has been increased this year to
30,000, making the accolade
the countrys most valuable
prize for a single work of art.
Judges including sculptor Peter
Randall-Page and National
Gallery curator Christopher
Riopelle will narrow down the
shortlist from a selection of 153
works showing at the Mall
Galleries in Westminster from
This year, visitors to the exhibi-
tion will be able to view works
including Helen Booths
Separation almost certainly
not a comment on the coali-
tions inner turmoil and
Domino Effect, something that
Threadneedles Eurozone ana-
lysts might have something to
say about themselves.
The exhibition will run until 13
October, with an awards dinner
to announce the winner hosted
by Victoria Coren on 10 October.
Art lovers will also be able to
cast their votes for the winner of
a special Visitors Choice Award,
which The Capitalist can only
hope might have a slightly more
optimistic title than last years
winner Drained.
Portillo to reveal shortlist for
prize held by Bad Government
EMPLOYEES from Liberum Capital swapped their suits
for spandex last week to take part in a 24-hour cycling
challenge to celebrate the companys fifth anniversary. The
event was organised by the investment banks own charity,
the Liberum Foundation, which holds two fundraisers each
year to support three London based charities.
Simon Stilwell, chief executive of Liberum, explained that the
foundation was set up to stand by the firms strong Liberum
culture and to give back to the local community.
Keen to start the challenge, the employees at Liberum
Capital channeled their collective inner Wiggins and
managed to cycle over 1,880 kilometres on stationary
bicycles parked in Central London. Employees found their
competitive sides, teaming up to cycle the miles and win the
anticipated Liberum Capital bonus. The suitably named team
Miles for St Giles cycled to victory for St Giles Trust Charity
while Saddle Support and Cycle Pathic raised money for
School Home Support and Tiny Tickers respectively. Those
that were less keen to jump into the saddle organised smaller
events, with Liberum Capital also donating all their trading
commissions made on the second day of cycling.
Overall the fundraiser raised over 120,000 with the chief
executive from St Giles Trust, Rob Owen, displaying his
gratitude by stating it was a true Tour de Force if ever there
was one!
By Phoebe Loveland
Last years prize was won by artist Henrietta Simpson for her piece entitled Bad Government
Russias largest privately owned
lenders, said yesterday it will proceed
with its long-awaited initial public
offering (IPO), aiming to strengthen
its capital and better position itself to
compete with state-owned banks.
PSB is seeking to capitalise on posi-
tive investor sentiment towards
Russian banks, powered by market
leader Sberbanks partial privatisa-
tion last week, which raised just over
$5bn (4bn).
With the Sberbank deal now out of
the way, PSB is joining companies
like Russias second biggest mobile
phone company MegaFon which is
eyeing a $3bn float in London in
seeking an international listing.
Promsvyaz Capital, through which
brothers Dmitry and Alexey Ananyev
own an 88.3 per cent stake in PSB,
will sell existing ordinary shares in
Moscow and global depository
receipts (GDRs) in London.
After the offering, the lender plans
to issue new ordinary shares via a
closed subscription, in which
Promsvyaz Capital has agreed to par-
The European Bank for
Reconstruction and Development
(EBRD), which owns the rest of PSB, is
considering participating in the
closed subscription, PSB said.
The EBRD may convert a 3.5bn rou-
ble (70m) subordinated loan provid-
ed to PSB in 2011, with a view to
maintaining its ownership level at
11.75 per cent.
Artem Konstandian, chief executive
with PSB, said yesterday that offering
existing shares first and issuing new
ones subsequently is a just a matter
of technique, more comfortable in
the current market environment.
He said the purpose of the IPO is to
raise new capital for the bank, not for
existing shareholders to make money
selling their stakes.
In September, PSB asked Russias
regulator to approve the listing of no
more than 25 per cent of its shares in
London in the form of GDRs.
It had planned to raise around $1bn
in the form of new and existing
shares but sources said last week that
PSB now aims to raise up to $500m.
Sberbank shares launch on LSE
in UKs biggest listing of 2012
RUSSIAN giant Sberbank listed in
the London Stock Exchange
yesterday, joining the flood of
firms from the country coming to
the City.
The Russian central bank sold a
7.6 per cent stake in the
institution, raising $5.2bn
(3.2bn) on the Moscow and
London markets though 85 to 90
per cent of that was on the LSE.
Sberbank is a renowned
financial institution, and a great
win for London. This
demonstrates that the Citys
ability to deliver substantial equity
funding to ambitious businesses
around the world is as strong as
ever, said LSEs Alastair Walmsley.
It also underlines the fact that
London remains, and has been for
many years, the natural
destination for Russian companies
seeking access to investor capital
from overseas.
Other Russian firms looking to
list in London include MD Medical
Group, telecoms firm MegaFon
and the countrys second largest
lender VTB.
The pool of international
investors in London is one reason
why so many firms are interested
in listing here, while the higher
standards of corporate governance
enforced by City authorities gives
a degree of reassurance to
investors worried about putting
money into emerging market
The global depository shares
now trading in London are worth
four ordinary shares.
Those shares ended yesterday at
$12.10, down 0.1 per cent on the
GLOBAL Radio, the commercial
radio group headed by Ashley
Tabor, has decided not to extend
its licence on the MXR multiplex
that covers regional centres for
digital radio coverage.
The group, which recently signed
a 12 year deal to broadcast its sta-
tions from a multiplex operated by
the German media group Bauer,
said it was still massively commit-
ted to the growth of digital radio.
For the past 11 years, Global has
been sharing the ownership of the
MXR multiplex with GMG, which it
now owns, and Arqiva.
Its decision not to renew its MXR
licence led some in the industry to
speculate that it was reducing its
digital ambitions. This is wrong,
said a spokesman. Global is totally
committed to digital.
Analysts said that both the BBC
and the commercial radio stations
had decided on a strategy of being
pegged to national roll-outs of digi-
tal and local ones, which tended to
focus on towns or cities with a high
density of people.
MXRs reach was in northern
England, the Severn Estuary and
the West Midlands.
Global said it had become less
commercially attractive than the
other options.
But this is so wrong to be sold as
the end of digital audio broadcast-
ing, said an insider.
Global Radio checks out of the
MXR digital radio multiplex
confirms plans
for London float
Italian fashion house Prada yesterday dismissed talk of a sharp slowdown in spending
on luxury goods, posting a 59.5 per cent jump in net profit to 286.4m ( 228.4m) and
saying its sales in the past two months were on track with expectations. I think we
must stay calm and be less hysterical, said Patrizio Bertelli, the firms chief executive.
AG BARR, the Scottish soft drinks
maker, yesterday remained silent on
its proposed 1.4bn tie-up with larger
rival Britvic as it shrugged off a fall in
half-year profit.
The group, best known for its bright
orange Irn-Bru drink, said pre-tax
profits fell eight per cent to 14.9m in
the six months to 28 July despite a
five per cent rise in sales to 130m.
It blamed higher sugar costs,
increased brand investment and poor
summer weather, where consumers
became less inclined to buy impul-
sively from smaller outlets with high-
er margins, such as corner shops.
The group said competition in the
soft drinks market has intensified
over the past six months, due in part
to the Olympics and the Queens
Diamond Jubilee celebrations.
But it said the greatest impact on
the market has been the surge in pro-
motional activity by brands trying to
increase volumes sales.
Despite the immediate challenges
of the market our core brands Irn-
Bru, Rubicon and Barr are in good
BY KASMIRA JEFFORD health and well positioned to contin-
ue to grow into the future, the group
It also raised its interim dividend by
7.5 per cent in a show of confidence.
Chief executive Roger White said the
merger talks with Britvic are ongoing
but was unable to comment further
due to Takeover Panel rules. A final
decision is due on 3 October.
The deal is likely to see Britvic own-
ing 63 per cent of the group and AG
Barr just 37 per cent, which one ana-
lyst described as a bum deal for the
latter. Others, however, argue that
Britvic should be given a larger slice of
the proposed company.
Sex Pistol John Lydon starred in adverts for Dairy Crests Country Life spread
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Dairy Crests half-year profits
to fall as it pays more for milk
DAIRY Crest warned of lower half-
year profits yesterday as its core milk
business continued to face unprece-
dented market conditions.
But the milk supplier left its
profit forecasts for 2013
Dairy Crest also became the
latest milk supplier to increase the
price it pays farmers for their milk
following Julys protests.
The company, which buys
supplies from 1,000 dairy farmers,
said it will hike the price it pays for
liquid milk and for making
Davidstow cheese by 3p to 29p a
litre from 1 November.
The rise more than makes up for
price reductions earlier in the year,
Dairy Crest said. The firm cut its
rate in May but postponed a further
reduction in August.
On Friday Tesco also hiked the
price it pays farmers for milk by 2p.
Dairy Crest said brands such as
Cathedral City cheese, Country Life
butter, Clover spread and Frijj
milkshakes performed strongly,
boosted by increased marketing
spend. The group said it is raising
milk selling price, closing its
Aintree creamery and consolidating
milk rounds to reduce costs.
A.G.Barr PLC
24Sep 18Sep 19Sep 20Sep 21 Sep
462.5 p
Dairy Crest Group PLC
24Sep 18Sep 19Sep 20Sep 21 Sep
360 p
FINSBURY Food Group, the cake
and bread maker, yesterday posted
a surge in full-year profits across
all of its divisions after sales
exceeded 200m for the first time.
The Aim-listed company, which
supplies retailers including
Waitrose, Tesco and Thorntons,
said adjusted profits before tax
rose 11.6 per cent to 6.5m for the
year to 30 June on sales up 9.4 per
cent to 207.4m.
Chairman Martin Lightbody,
who joined Finsbury in 2007 when
it bought cake company Lightbody,
said business had never been
more of a challenge.
Steering a major bakery group
through the stormy seas of an
Finsbury Foods reports great
bake-off as sales top 200m
BY KASMIRA JEFFORD economic downturn was never
going to be painless, he said.
He warned that input inflation
continued to impact margins with
prices for commodities such as
sugar and eggs steadily increasing.
Lightbody said consumer
incomes remained squeezed but
cakes remained an affordable
family treat.
Revenue from cakes across UK
and Europe rose by nine per cent
to 152.4m, driven by growth at its
subsidiary Lightbody, which
specialises in celebration cakes.
The groups bread and Free
From ranges were also up by 10
per cent to 54.9m, boosted by
demand for gluten-free products.
It also reduced its total net debt
by 8.6 per cent to 33.9m.
AG Barr silent
on merger plan
as income dips
Spirent sells off 61m PG Drives
nCommunications tester Spirent
yesterday announced the $61m
(39.5m) sale of its system division
PG Drives Technology to US defence
component maker Curtiss-Wright.
PG Drives designs and makes power
supply controllers for electric vehicles.
Spirent chief executive Bill Burns said
the disposal was a step forward in
Spirents strategy to focus the groups
activities on the faster growing test
and measurement market.
Double digit growth at Diploma
nTechnical products firms Diploma
said it expects turnover to rise 13 per
cent this year, but warned that profit
margins had slipped due to a number
of purchases and a stronger pound.
The FTSE 250 firm, which supplies the
life sciences and seals industries,
bought US-based J Royal in December
for 11m, boosting revenue. Diploma
said underlying sales would rise by
around five per cent when it reports in
Smurfit Kappa expands in LatAm
nIrish packaging group Smurfit
Kappa has agreed to buy a US
containerboard manufacturer for
210m, in a deal that will boost its
fast-growing Latin American business.
Smurfit agreed to buy Orange County
Container Group using its existing
cash resources, the company said in a
statement. OCCG, which employs
2,800 people, mostly in Mexico, will
deliver at least $14m of synergies by
the second year of the merger, Smurfit
said yesterday.
THE COMPANY that runs the Hop
Farm and Benicassim music festivals
yesterday confirmed it was set to go
into administration after the firm
suspended shares last week.
Music Festivals, which also operates
Finsbury Parks Feis Festival and the
newly launched Costa de Fuego event
in Spain, admitted on Friday it had
failed to raise funds to support its
business and would make a loss this
Chief executive Vince Power took
the firm public on the Aim index last
year making it the first listed festi-
val company but he saw lower than
expected ticket sales for the Hop
Farm and Benicassim festivals this
year due to wet weather and high-
profile music events linked to the
The company said it
had not yet appointed
administrators and
that an announce-
ment will be made
in due course.
Questions over the
suitability of Kents
Music Festivals
set to go into
BY JAMES TITCOMB Hop Farm as a venue were raised last
month when the only two concerts
scheduled at the park were moved.
Music Festivals has seen its share
price plummet from June 2011s ini-
tial public offering price of 67p down
to 2p last week.
The company said last month that
due to poor trading conditions it
expected to generate a material
loss for the year and that it was seek-
ing to raise additional working capi-
But the firm is not alone in strug-
gling to succeed in the UK fes-
tival market.
Sonisphere ditched its
UK leg this year, while
the promoters of Bloc
festival in London fell
into administration.
The team behind All
Tomorrows Parties has
pledged to continue put-
ting on events after the
firm went into volun-
tary liquidation in July.
Chief executive Vince
DEFENCE technology company
QinetiQ yesterday reported a
better than expected first half
performance, helped by strong
trade at its global products and
UK services divisions.
QinetiQ, which makes high-
tech military equipment such as
bomb disposal robots and sniper
detectors, said it had delivered
the majority of two large orders
for the Q-Net vehicle survivability
product, a Kevlar web which
helps protect vehicles from
rocket-propelled grenade attacks.
It added in a trading update
QinetiQ first half figures up on
delivery of grenade protectors
BY HARRY BANKS that its UK services unit
performed well during the
period, but that this was partially
offset by its business in the
United States, which continues to
experience delays in contract
The US, which remains the
worlds largest market for
weapons, already has plans in
place to cut $487bn from its
defence budget.
QinetiQ, formerly Britain's
state-owned defence research
agency, said forward visibility for
the next six months was much
lower than usual, particularly in
the US.
QinetiQ chief Leo Quinn said the global products and UK services divisions thrived
INVESTMENT bank Shore Capital
reported steady profits in the first
half of 2012 yesterday, with strong
growth expected to continue in
part thanks to its German telecoms
Group revenues came in at
17.8m, up 28.3 per cent on the sec-
ond half of 2011, and down 12.7 per
cent on the first half of last year.
That took pre-tax profits to 2.2m
in the first six months of 2012,
down from 4.3m in the same peri-
od of last year but still a solid per-
formance given weak market
conditions. Shores shares jumped
24.1 per cent on the announce-
ment, hitting 18p by the end of the
The firms commission earnings
increased nine per cent on the first
half of last year, and executive
chairman Howard Shore believes
equity markets may have bottomed
out, allowing for more growth in
the near future.
He also believes Spectrum
Investments, the groups German
telecoms asset, has the potential to
make a strong capital gain for the b
Shore is continuing to raise 20m
Shore Capitals
shares soar as
revenues rise
to 30m for its latest five-year ven-
ture capital trust, branded Puma
VCT 9.
It is not an easy market to raise
money in for five years, but it is not
impossible, chairman Howard
Shore told City A.M.
Investors put their funds with us
for tax breaks and because of our
strong track record. It is a trade of
between liquidity and return, so it is
not something that sells like hot
cakes we really have to prove we
are the best.
Shore has had to move out of some
less successful areas, writing off a
hotel investment and closing its pri-
vate wealth business in the last year.
But the firm said those are the last
planned closures, with only
stronger prospects remaining.
Howard Shore thinks equity markets will rebound in the near future
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Gleacher sees jump in turnover
despite slow merger markets
INVESTMENT bank Gleacher
Shacklock will this week report
increased revenues through 2011,
despite choppy markets and
falling profits in many larger
institutions in the sector.
However profits stagnated, and
the firm increased spending on
staff with overall headcount
increasing by six to 48.
Much of the firms income
comes from fees on mergers and
acquisitions a particularly flat
market in recent months.
Yet Gleacher Shacklock defied
market conditions last year and
raised revenues.
The boutique institution has
continued to land major advisory
roles into 2012 even as the merger
and acquisition market appeared
to dry up, and the initial public
offerings industry largely ground
to a halt.
It is one of the advisors to BAE
in its mega-merger talks with
fellow aerospace giant EADS,
alongside investment bank
heavyweights Goldman Sachs and
Morgan Stanley.
Earlier in the year it worked on
the GKN deal to buy Volvos aero
engines business.
Revenues last year came in at
15m, up 4.9 per cent on the
14.3m seen in 2009.
But profits held steady at 8.3m,
failing to repeat the enormous 48
per cent jump recorded from 2009
to 2010 a leap which was largely
driven by falling expenses over the
The group was established in
2003 by ex-Dresdner Kleinwort
Wasserstein deputy chairman Tim
Insurer Tawa sells unit for 17m
n British insurer Tawa yesterday
announced the sale of its KX
Reinsurance business to Bermudas
Catalina Holdings for $28m (17m) in
cash. KX Re has total assets of $114m
and its risks are mainly in the US, date
from before 1985 and include asbestos
liabilities. It was put into run-off in
1992 before being sold by CNA
Financial Corporation to Tawa in 2007.
Chris Fagan, chairman and chief
executive of Catalina, welcomed the
deal: KX Re is our second acquisition
in this quarter, and we are in
negotiations on a number of other
attractive opportunities some of
which we expect to conclude and
announce this year.
Brazil prosecutor charges Petrobras
n A prosecutor from Brazil's Public
Ministry has charged state-run oil
company Petrobras with
environmental crimes for a spill at its
Duque de Caxias refinery that
allegedly contaminated the
mangroves and estuary of Guanabara
Bay off Rio de Janeiro. Public
prosecutor Renato Machado also
charged two employees of Petrobras
in a statement released yesterday. The
spill occurred in June 2011. "The Reduc
(refinery) acted with complete
negligence. They knew since 2007 at
least that the treatment stations were
obsolete and not functioning
adequately and they did nothing,"
Machado said.
Shore Capital Group Ltd
24Sep 18Sep 19Sep 20Sep 21 Sep
SOUTH Africa-focused Petra
Diamonds yesterday reported a loss
after tax of $2.1m (1.3m) down from
$59.2m profit last year, hurt by
$38.6m foreign exchange losses due
to swings in the value of the South
African rand.
The FTSE 250-listed diamond
miner, which has seven operating
mines in South Africa and one in
Tanzania, reported a 44 per cent
jump in revenue to $316.9m over the
year to 30 June, up from $220.6m
last year. The Finsch mine in South
Africa, whose acquisition completed
in September 2011, was the main
contributer to its robust revenues.
Petra moves
into the red
BP WILL have to invest billions of dol-
lars more than previously planned if
it is to slow falling output at an Azeri
oil project that is also Azerbaijans
biggest cash cow, oil executives and
diplomats say.
The investments required to cut
the decline at the Azeri-Chirag-
Gunashli (ACG) fields are so large
that it may not even be commercially
viable for the companies to spend
the money unless they receive sweet-
eners from the government, the
sources said.
The problems at ACG will affect
international oil supplies and come
as BP faces the possibility of paying
out $17bn (10.5bn) more in fines
related to the Gulf of Mexico oil spill
than it has budgeted for, after the US
Department of Justice accused the
company of gross negligence.
ACG was supposed to produce
more than 1m barrels per day (bpd),
after a third phase was completed in
2008. The prospect of so much non-
Opec crude ensured considerable
western diplomatic support for the
project and industry kudos for BP.
ACG is so critical to Azerbaijan that
BP may need to
pump billions
into Azeri field
the day of the signing of the
Production Sharing Agreement (PSA)
covering the fields 20 September
has been designated as Oil Workers
Day and public celebrations are held
in Baku on this date.
However, ACG has not lived up to
expectations. After hitting 823,000
bpd in 2010, output has fallen.
Production averaged 684,000 bpd in
the first half of this year and oil exec-
utives and diplomats said the chal-
lenge is now to keep output to
around the 700,000 bpd mark.
Officials at BP and state oil company
Socar say the geology of the field has
fallen short of original expectations,
but have said maintenance work is
behind falls in the past 18 months.
24Sep 18Sep 19Sep 20Sep 21 Sep
TOYOTA has scrapped plans for
widespread sales of a new all-
electric minicar, saying it had
misread the market and the ability
of still-emerging battery
technology to meet consumer
Toyota, which had already taken
a more conservative view of the
market for battery-powered cars
than rivals General Motors and
Nissan, said it would only sell
about 100 battery-powered eQ
vehicles in the United States and
Japan in an extremely limited
The carmaker had announced
plans to sell several thousand of
the vehicles per year when it
unveiled the eQ as an pure-electric
Toyota is short of energy for
wide release of battery cars
BY CITY A.M. REPORTER variant of its iQ minicar in 2010.
Two years later, there are many
difficulties, Takeshi Uchiyamada,
Toyotas vice chairman and the
engineer who oversees vehicle
development, told reporters
By dropping plans for a second
electric vehicle in its line-up,
Toyota casts more doubt on an
alternative to the combustion
engine that has been both lauded
for its oil-saving potential and
criticised for its heavy reliance on
government subsidies in key
markets like the United States.
The current capabilities of
electric vehicles do not meet
societys needs, whether it may be
the distance the cars can run, or
the costs, or how it takes a long
time to charge, said Uchiyamada.
Toyota says battery technology, as used in its eQ cars, is too limited for wide release
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lofoma| oat|oq |o ou uodoqouod basso|o
z Loadooba|| Ma|ot, C|ty of Loodoo
ECV LR ozo o+a aovo
Cairn to sell stake in its
joint venture in India
CAIRN Energy is selling an eight
per cent stake in Cairn India for up
to $940m (579m), a source with
direct knowledge of the matter
said, in a second such deal in three
months to pare holding in its
former Indian unit.
Cairn Energy last year sold a
controlling stake in Cairn India to
London-listed miner Vedanta
Resources in an $8.7bn deal. The
British oil firm owned nearly 22 per
cent of the Indian company as of 31
In June, Cairn Energy sold 3.5 per
cent of Cairn India to raise about
Cairn Energy held 18.3 per cent of
Cairn India as of the end of June,
stock exchange data showed. After
its latest share offering, its stake
will fall to about 10 per cent.
Cairn Energy yesterday launched
an offering of nearly 153m shares of
Cairn India for between 317.90
rupees and 328.30 rupees per share,
said the source, who asked not to be
identified as he was not authorised
to speak to the media. Citigroup is
acting as sole bookrunner.
PRIME London property registered
another quarter of booming
growth in the three months to
September, estate agent data
revealed yesterday.
Prime property prices grew 0.5
per cent between the second and
third quarters, capping off growth
totalling five per cent over the year,
the research from Savills showed.
Contrasting with the picture in
much of the country, this means
prices are some 45.8 per cent above
the low they hit during the depths
of the credit crunch and have
even climbed 14.1 per cent above
their pre-recession peak.
The figures for prime property in
central London are even stronger:
Prime London property
prices still soaring up
BY BEN SOUTHWOOD prices climbed 0.8 per cent during
the quarter, 5.5 per cent over the
year, and are now 21.8 per cent
higher than the record heights
reached before the slump.
But Savills boss Lucian Cook said
the figures were disappointing.
Despite some high profile sales,
heightened uncertainty in the
Eurozone and a cautious response
to changes in the tax regime have
caused the heat to come out of the
market, Cook said, Albeit without
leading to price falls.
Detailed analysis of the index
suggests that it is increasingly the
best in class of prime London
homes that are underpinning price
growth, Cook added.
He pointed to data that showed
how the top 10 per cent of proper-
ties were growing very rapidly at
around three per cent in the quar-
ter but also revealed stagnation
and even decline lower down in the
And wealthy Chelsea is the only
area seeing yearly double digit price
growth with similarly well-heeled
Knightsbridge and Belgravia just
behind. The report puts their suc-
cess down to their familiarity for
the international super-wealthy and
highly mobile elite.
Right at the very top of the market
is 45-bedroom Rutland Gate
Mansion, which two weeks ago
went on sale for 300m if a buyer
matches this reported asking price,
the sale would smash the UK
record, which currently stands at
140m. Forty-five bedroom Rutland Gate Mansion has been put on sale for around 300m
Poll shows workers unaware of
pension auto-enrolment plans
MUCH OF the UKs population is
clueless about auto-enrolment,
despite the fact workers and
businesses will be impacted
from next week, a survey from
Friends Life revealed yesterday.
A full 60 per cent of
respondents to the poll said they
didnt know what auto-
enrolment was, and a further 27
BY BEN SOUTHWOOD per cent said they didnt know
whether or not their employer
would have to auto-enrol them.
The poll will come as a knock
to the government, which will
force all employers to enrol their
employers with an accredited
pension scheme over the next
four years, starting with the UKs
largest firms.
But the Department for Work
and Pensions claimed a lot had
changed since the poll in August,
saying: Last week, we generated
widespread publicity on the
introduction of the policy in
The news came as a poll by SEI
revealed pension schemes
biggest worry was increasing
longevity. Falling equity markets
and rising inflation ranked as
funds second and third most
significant concerns.
THE US recovery faltered in
August, according to the Chicago
Feds national activity index
released yesterday.
The headline indicator fell
from minus 0.12 in July to minus
0.87 in August below the minus
0.7 level that is consistent with
weak recovery. Figures above
zero indicate more robust
The three-month moving
average also slipped, down from
US recovery looks in doubt as
Fed activity index collapses
BY BEN SOUTHWOOD minus 0.26 in July to minus 0.47
in August, implying that the
slump may not be a short blip.
The other main index, which
measures 85 different individual
indicators, slipped to minus 0.23
from minus 0.08. This reflected
an improvement in 29 indicators,
and a worsening in 55
indicators one was unchanged.
The biggest shift was in
production-related indicators,
which taken together collapsed
from plus 0.08 in July to minus
0.58 in August.
JAPAN could be set for even
more monetary stimulus, its
central banks deputy governor
revealed yesterday, less than a
week after it announced the
latest tranche of quantitative
easing (QE).
The countrys asset buying and
loan programme will be boosted
to 80 trillion yen (632bn), the
Bank of Japan (BoJ) said last
Wednesday. And yesterday its
deputy governor said that more
could follow.
As has been the case up till
now, well take bold and flexible
action when necessary, while
scrutinising the outlook for the
economy and prices as well as
risks, Hirohide Yamaguchi
Weve judged that the
economy was
undershooting our
expectations. If so, there
was no reason to delay
taking policy action,"
he pledged.
added that the
slowdown in
Chinese growth,
combined with
ongoing strife in
the Eurozone,
would delay
Bank of Japan ready
for more bold action
Japans recovery by around six
months. Japanese exports last
month were down 5.8 per cent
compared to a year earlier,
official data has estimated.
The slowdown in Chinese
growth is lasting longer than
expected. Its certain that the
timing of [Chinas] exit from the
slowdown will be delayed, he
Japans economy bounced back
from 2011s horrific earthquake
and tsunami, which devastated
many coastal regions, yet has
begun to stall in recent months as
weak global demand drags on
Despite worries over the
countrys trading figures,
Yamaguchi stressed that the
authorities are not permitted
to directly intervene with
Japans currency.
But that does not mean we
do not care anything about
currency moves, he added,
saying that moves in
the value of the yen
are considered when
the BoJ is weighing
up policy moves to
boost the economy.
Yamaguchi warned of
the effects of Chinas
US SECRETARY of state Hillary
Clinton has called on the worlds
wealthiest to pay their fair share
of taxes.
As the Democrats ramp up their
fight against the Republicans
ahead of Novembers presidential
election, Clinton told a conference
in New York that she is keen for
countries around the world to
collect taxes in an equitable
manner, especially from the
Clinton, who is campaigning for
Barack Obamas reelection, added
that leaders need to tell powerful
people things they don't want to
hear over their contributions to
state spending.
Republican candidate Mitt
Romney, who has proposed cutting
income taxes, has come under fire
for his own contributions.
He said that he thinks it is fair
that he pays a lower tax rate on his
investment income of $20m last
year than someone who made
$50,000 annually.
Yeah, Romney said in an
interview aired on Sunday on CBS,
when he was asked if he thought
his relatively low rate was fair.
Romney released his 2011 return
on Friday, which showed he paid
an effective tax rate of 14.1
percent. Romney pays a lower tax
rate because his earnings come
from investment income. Earnings
from wages can be taxed at a rate
of up to 35 percent.
Romney has steadfastly refused
to release more than two years of
his tax returns, breaking a
longstanding presidential
campaign tradition.
Democrats contend Romney is
hiding something, arguing that the
American people have the right to
the information so they can make
their own judgments about the
finances of a potential future
Romney has said releasing the
returns would just give his rivals'
"hundreds of thousands of more
pages to pick through, distort and
lie about.
But Barack Obama is facing his
own set of problems. The President
is due to speak at the UN General
Assembly today, amid close
scrutiny of his foreign policy.
Relations with Israel,
Afghanistan and Iraq have become
sore spots on the campaign trail.
Speaking at the Clinton Global
Initiative last night, Obamas ally
also urged those taking part in
protests across the Middle East to
eschew violence.
Car sales get on the road
nConsumers are piling into
the car market, according to
data released by Sainsburys
Bank yesterday. Some 9.8m
people intend to buy a car in
the coming six months, the
data shows, a three per cent
jump on the previous six-
months. But the report also
warned that many car
purchases would be on the
more frugal end of the market.
A large number of these are
looking to downsize or choose
more economical optionsin
order to reduce their fuel bills
or road taxes, said Steven
Baillie, head of loans at
Sainsburys Bank.
Taiwan industrial output up
nTaiwans industrial
production surprised analysts
by growing in August, even as
ratings agency Standard &
Poors (S&P) cut its forecast
for the countrys growth.
Industrial production grew 1.8
per cent during August,
putting it 1.9 per cent up on a
year previously economists
had been expecting the data to
reveal a 0.4 per cent yearly
decline. This came as ratings
giant S&P cut its forecast for
Taiwanese GDP growth over
the year to 1.9 per cent, from
its previous estimate of 2.4 per
Hillary Clinton calls on
rich to pay more tax
Winston & Strawn
Michael Madden has been
appointed to the role of
managing partner in the law
firms London office. He replaces
Thomas Benz. Madden currently
leads Winston & Strawns
commercial litigation presence in
London, and he has particular
experience in corporate
acquisitions and divestitures.
David Hodgson has been appointed as a healthcare and life
sciences partner in Deloittes enterprise risk services
practice. He joins from IMS Health, where he led its Europe,
Middle East and Africa business transformation services
team. Hodgson has also previously worked at Accenture,
where he was the managing partner for its health and life
sciences group in UK and Ireland
The accountancy and business advisory firm has appointed
Ross McDonald as head of debt advisory. He joins from
Deloitte, where he spent 10 years working in corporate
finance. In this newly-created role, McDonald will be
responsible for launching BDOs debt advisory practice.
BNP Paribas Corporate and Investment Banking
Ian Williams has been appointed as a managing director in
the banks general industrials and technology, media and
telecommunications team. He has over 20 years
investment banking experience and joins from Jefferies,
where he was head of its European industrials team.
Brooks Macdonald Asset Management
Haydn OBrien has been appointed to the role of investment
management director at the asset management firm. He
was most recently at Maunby Investment Management, and
has also held roles at Adam & Company. OBrien has
previously been involved in managing private client and
charity portfolios, and in undertaking investment research.
Paul Savitz has been appointed to the role of associate
director in the commercial real estate firms residential
research team. He joins from Savills, where he was an
associate in its research team, specialising in applied
research consultancy projects for development companies,
financial institutions, and land owners.
Iain Travers has been appointed as a partner in the law
firms London-based real estate dispute resolution group.
He was formerly head of Nabarros real estate dispute
resolution team, and is also a past chairman of the Property
Litigation Association.
+44 (0)20 7092 0053
US stocks drop
as Caterpillar
slows the Dow
S stocks edged lower yesterday
as a disappointing forecast
from Caterpillar and weak
German data increased
concerns that global growth may
remain sluggish.
Just before the close, Caterpillar cut
its earnings forecast for 2015. Its
shares fell 0.9 per cent to $90.87 and
were the top drag on the Dow.
An index of German business senti-
ment declined for a fifth consecutive
month in September, showing
Europes strongest economy was mov-
ing closer toward recession while the
Eurozones debt crisis is unresolved.
Concerns about a stalling global
economy also were reflected in ener-
gy and technology shares, with the
S&P 500 technology index down 0.8
per cent.
But the S&P 500 is on track for a
seven per cent gain for the quarter.
Investors are probably participating in
window dressing, where fund man-
agers add some of the latest outper-
formers to their portfolio.
Hedge funds remain somewhat
short the market, and the end of the
quarter is coming up, so I wouldnt be
surprised to see equity markets push a
bit higher over the near term, said
Michael Sheldon, chief market strate-
gist of RDM Financial, in Westport,
The gains have largely been related
to central bank stimulus plans. On 6
September, the European Central
Bank announced its bond-buying
plan, and a week later, the Federal
Reserve unveiled a third round of
quantitative easing intended to bol-
ster the economy and reduce US
The Dow Jones industrial average
declined 20.55 points, or 0.15 per cent,
to 13,558.92 at the close. The Standard
& Poors 500 Index shed 3.26 points,
or 0.22 per cent, to 1,456.89. The
Nasdaq Composite Index dropped
19.18 points, or 0.60 per cent, to close
at 3,160.78.
Dragging down the Nasdaq, Apple
fell 1.3 per cent to $690.79 even as its
latest iPhone sold out. Concerns arose
that the company was unable to pro-
duce the new phone quickly enough
to meet demand.
Among other high-profile tech
decliners, Facebook shares dropped
9.1 per cent to $20.79. It was the
Nasdaqs most actively traded stock.
In the energy sector, the PHLX oil
service sector index shed 1.4 per cent,
while US crude oil declined 1 per cent
to settle at $91.93. Worries about glob-
al demand pushed crude prices down
more than six per cent last week.
For the third quarter so far, the ener-
gy sector has performed well, howev-
er, with the S&P energy index up 10.6
per cent so far.
Shares of home builder Lennar fell
1.5 per cent to $36.96 despite report-
ing steep increases in its third-quarter
earnings and revenue.
Lennars results follow a similarly
strong report from KB Home and
together indicate the housing market
is moving toward recovery.
RITAINS top share index fell
yesterday, led by miners, as dull
European data kept the focus on a
gloomy economic outlook,
tempering the boost given to markets by
recent central bank stimulus moves in
Europe and the United States.
Germanys Ifo index of business senti-
ment fell for a fifth month running,
bucking expectations for a rise, to become
the latest in a run of poor data from
major economies.
That data has turned investors minds
back to the longer-term problems of both
Europe and the United States in generat-
ing growth while trying to get public debt
under control.
Todays probably more by way of a real-
ity check ... [the] weak Ifo doesnt really
help, said Frances Hudson, global the-
matic strategist at Standard Life
A lot of positive feedback has been read
into the central bank easing, whether its
the ECB or the Fed, and anything like that
is going to take a long time to deliver,
Hudson said.
The FTSE 100 closed down 13.78 points,
or 0.2 per cent at 5,838.84, having
notched up a loss of 1.1 per cent last week
after two consecutive weeks of gains.
Weakness in heavyweight miners
accounted for around eight points, or
over half of the indexs decline, as the sec-
tor tracked weaker copper prices.
Overall the mining sector has fallen
around five per cent since the release late
last week of dull manufacturing data out
of China, the worlds top consumer of
JP Morgan Chase recommended that
investors pocket recent gains in the sector
because the impact of stalling global
and particularly Chinese growth
momentum was offsetting the modest
boost generated by the US Federal
Reserves new asset-buying programme.
A healthy period of consolidation to a
market underpinned by the printing
presses might not be a bad thing, helping
to remove some of the froth and tail risks
presented to the market by the recent
rush into riskier assets, said David White,
a trader of financials at Spreadex.
JP Morgan Chases top sector picks were
Rio Tinto, Antofagasta, Fresnillo and
BHP Billiton and it said it would avoid
Anglo American and Kazakhmys.
Anglo American, down 2.9 per cent, also
suffered as BofA Merrill Lynch cut its rat-
ing to neutral from buy with a
reduced target price of 2,400p.
Weak banks also dragged on the blue
chips, reversing a summer rally as
investors appetite for risk shrank and the
focus returned to lenders exposure to
Eurozone debt.
The banking sector has gained over 18
per cent since late July when ECB presi-
dent Mario Draghi promised to do every-
thing in his mandate to protect the euro.
The Eurozones troubles were back in
focus this week with Spain, under pres-
sure to submit to a rescue programme,
due to present its 2013 budget on
Thursday and with talks due to restart
between Greece and the EU/IMF/ECB troi-
ka on the progress of austerity measures
linked to a rescue package.
As risk appetite took a knock, stocks
seen as less dependent on the economic
cycle found support, with drugmakers
the biggest gainers led by Shire, up 1.7 per
cent helped by positive comments from
Exane BNP Paribas in a review of the
European sector.
Positive comments from Credit Suisse
strategist Andrew Garthwaite on UK equi-
ties also helped underpin the market. He
reiterated an overweight stance on UK
equities, with a year-end FTSE 100 target
of 6,250.
FTSE dips on poor European data
and weakness in price of copper
Games Workshop Group PLC
18Sep 19Sep 20 Sep 24Sep 21Sep
p 680
24 Sep
Peel Hunt yesterday reiterated its buy recommendation for Games
Workshop and raised its target price for the company from 700p to
750p. The broker said following the groups annual general meeting
held last week it was particularly clear that the substantial changes
over the last few years have resulted in a much stronger business, which
is now converting into improving sales growth.
18Sep 19Sep 20Sep 21Sep 24Sep
24 Sep
To appear in CITYMOVES please email your career updates and pictures to
in association with
Tesco PLC
18Sep 19Sep 20 Sep 24Sep 21Sep
p 348
24 Sep
Deutsche Bank yesterday reduced its target price for Tesco from 339.75p
to 394p but retained its buy stance ahead of the retailers half year
results on 3 October. The bank said it expects Tesco to report a decline
earnings before interest, tax, depreciation and amortisation outside the
UK due to macro pressures in Europe, regulatory changes in Korea and
tactical slowdowns at Tesco Bank and Fresh & Easy.
Signet Jewelers Ltd
18Sep 19Sep 20 Sep 24Sep 21Sep
24 Sep
Investec has raised its target price to 3,760p from 3,605p and remains a
buyer of the stock. The broker forecasts higher quarterly earnings of 34 to
38 cents per share when it reports on 20 November as a result of the
jewellers decision in July to boost its share buyback plan by $50m to
$350m. Investec said Signet has considerable potential for long-term
organic sales growth and market share expansion in its core US market.
HEN HMRC wrongly
changed my tax code last
October, I was paying 40
per cent of my total
income as tax for six
months. It had a huge impact on my
finances my take home pay went
below my mortgage costs. And HMRC
couldnt correct it, despite admitting
its error. In the end I had to hire an
accountant to reclaim the money I
was owed. Its no wonder that tax
accountants like complex tax codes.
Although this was highly
frustrating, it only cost me a few
hundred pounds and I appreciate
that mistakes can happen. But I
recently had another nasty surprise
and was once again unable to pay my
mortgage. And it wasnt an error. It
OMETIMES, its hard not to feel
rather sorry for the Liberal
Democrats. After the public
relations disaster of Nick
Cleggs toe-curling apology on
tuition fees last week, the party
faithful have gathered in Brighton
only to be battered by violent storms.
The Lib Dem leadership was hoping to
pilot a course to sunnier political
climes and calmer economic waters.
But, thus far, the policy proposals
emerging give little grounds for
optimism on either count.
If the Conservative side of the coali-
tion is insufficiently bold on supply-
side reforms, their Lib Dem partners
often seem incapable of comprehend-
ing how such reforms could bring
growth to a sluggish economy at all.
The Lib Dems default position
remains one of old-fashioned demand
management, and often comes with a
fairly hefty price tag attached.
So it is with Vince Cables plan for a
government-backed business bank. At
1bn, the price isnt gigantic and the
intention to assist small to medium-
sized enterprises (SMEs) facing a credit
Clegg and Cable
could both have put
forward braver, bolder
and affordable reforms
Twitter: @cityamforum on the web: or by email:
Agree? Disagree? Got a sharp comment?
The Forumwants you to join the debate.
Top responses will be reprinted in The Forum.

The ideas emerging from Lib Dem
conference dissolve under scrutiny
squeeze is understandable. But the pol-
icy shows an incoherence and incon-
sistency at the heart of coalition and,
specifically, Lib Dem thinking.
On the one hand, the government is
aiming to prevent future bank failures
by increasing regulation hardly a
sure-fire way to encourage banks to
lend more. On the other, Cable seems
keen for the government, rather than
the private banking sector, to explicitly
bear the risks of underwriting loans
taken out by individuals and business-
es. Although on a much smaller scale,
this seems almost identical to the sort
of government-backed securitisation
policies that played such a large role in
the financial crisis in the first place.
The proposal might help grab a head-
line, and deliver a morale boost to Lib
Dem activists concerned that their
party isnt winning enough conces-
sions from the Conservatives. But the
prospect that it will deliver any sensi-
ble, measured assistance for SMEs in
the short term is deeply questionable.
Cables plan for more state lending to
businesses came hot on the heels of
Cleggs wizard wheeze to help first-
time buyers onto the property ladder.
The idea is to allow parents to use their
pensions to guarantee their childrens
mortgage. But the policy doesnt bear
much scrutiny. We did not get into the
current economic situation because
there were too few opportunities for
people to run up debts, guaranteed by
others. Once again, some of the core
lessons of the financial crash have
been missed entirely.
But, even overlooking this, it is very
hard to see how the scheme could
have any measurable practical effect.
There are surprisingly few middle-
aged people with a decently-sized pen-
sion provision. Those with such
provision are very likely to own a
house or other assets, which could be
put up as a mortgage security in any
event. Its just possible that the Clegg
scheme could help the very small pro-
portion of middle class families who
are income rich but asset poor. But it
isnt going to come close to tackling
the root causes of problems in the UK
housing market.
Both Clegg and Cable could both
have put forward braver, bolder and
crucially affordable supply-side
reforms in these policy areas. To
unleash the entrepreneurial power of
SMEs, the business department needs
to go much further on deregulation.
This isnt to say that a lack of credit
isnt a problem. It is. But it is neither
easy or cheap to solve. Providing SMEs
with a raft of exemptions from the red
tape which frustrates and limits UK
business, however, would cost the gov-
ernment virtually nothing and would
have an invigorating effect.
Similarly, Clegg should have pressed
for a dramatic liberalisation in plan-
ning law if he is really serious about
helping young people onto the hous-
ing ladder. Only 10 per cent of land in
this country is developed and only 5
per cent is actually under concrete. An
enormous programme of construction
is entirely possible without bulldozing
over areas of great natural beauty. But,
it will take a full scale assault on
Britains out-dated, complex and time-
consuming planning laws. It appears
to be the Conservatives who are more
determined to lead on this, with
Cleggs ideas something of a side-show.
The Lib Dems are in danger of giving
the impression that they are simply
limping on and muddling through.
There is little sign that they are willing
to seriously consider the radical
reforms our economy truly needs.
Mark Littlewood is director general of the
Institute of Economic Affairs (IEA) and for-
mer head of media for the Lib Dems.
was the result of an integral part of
the tax system.
In the UK, we have a progressive
income tax the marginal rate rises
with your income. Most of us get to
keep 8,105 tax free, with a 20 per
cent rate on the next 34,370. Once
your earnings go above this, you pay
40 per cent on the additional
amount. And currently, 50 per cent
is levied on earnings above 150,000.
At least this is what I thought. But it
isnt actually the case.
Pay As You Earn (PAYE) taxes are
calculated on a cumulative, monthly
basis. Therefore, these thresholds are
not applied to your annual income.
They are adjusted to an estimate of
your annual salary, based on your
monthly earnings. This is an
important difference.
In June, I made the fatal error of
doing some additional work and
received a bonus. HMRC treated the
additional payment section of my
payslip as the same as basic pay, and
thus inferred that my annual salary
had tripled. So it began taxing part
of my earnings at a higher rate.
When I received my July pay slip, I
was shocked to see that my tax rate
continued to reflect this inference,
even though my basic salary was
back to normal. From June to July my
basic salary did not change, and I
will not be earning more than
150,000 in this tax year. And yet the
proportion of my income taken as
tax doubled. Once again, I find
myself paying 40 per cent of my
monthly salary as tax, rising to
around 48 per cent if you include
national insurance contributions.
As the year passes, and it becomes
obvious to HMRC that my bonus was
indeed a bonus, it will start paying
back some of this money. But, just
like last year, I am in the frustrating
situation of the state taking more of
my earnings than it should, while
refusing to pay it back. This time it
isnt an error, but how PAYE is
supposed to function.
If you look at my situation over the
course of a year, the correct amount
of tax will have been levied. But the
marginal rate has fluctuated wildly
from month to month. The fact that
it will be corrected over time is scant
consolation when I have bills to pay
right now. What is more frustrating
is that these quirks of the tax system
are hidden when you look on an
annual basis. But they place
significant burdens on taxpayers,
and are a major reason why simpler,
flatter taxes would be fairer.
Anthony J. Evans is associate professor
of economics at ESCP Europe Business
Twitter: @anthonyjevans
Frustrating UK tax quirks can easily mean missed mortgage payments
In association with
The Forum is open for you to take part. Got a sharp comment on
one of todays columns? Do you have another subject you want
to share your opinion on? We want to hear your views.
Email or comment at
Shale gas potential
[Re: Britain needs to embrace the global
shale gas revolution, Friday]
Allister Heath is right that shale gas has had
a huge impact on the US energy sector, with
a resultant impact on the economy.
However, he fails to stress the adverse
environmental impact of certain hydraulic
fracturing or fracking. The Royal Society
and Royal Academy of Engineering recently
recommended steps to be taken to ensure
fracking is carried out responsibly. While we
focused on environmental risks, our report
highlighted the need for investigation of
other risks, like the carbon footprint of
fracking should methane escape into the
atmosphere during the extraction. Also,
although various estimates have been made
of the UKs shale gas reserves, we do not
have enough information to make a
rigorous estimate of how much of this
resource can be technically and
economically extracted. Shale gas may or
may not be the answer to the UKs energy
needs. The situation is far more complex
than Heath suggests.
Robert Mair, professor of geotechnical engi-
neeringat CambridgeUniversity
The government is failing to act on Britains
impending energy gap. Given the closure of
old coal-fired stations and the planned
closure of several nuclear plants, using
cheap shale as a power source is the logical
next step. Since it takes so long to bring new
capacity online, we must start planning now.
Matt Gash
The Lib Dem conference is an odd thing.
Theyre discussing all the policies they would
pursue, if only they didnt have power.
Lib Dem logic: Vince Cable announces a 1bn
bank to help small businesses grow, while
Nick Clegg says he will tax success.
Im confused. Labour considered those on
50,000 so poor they needed tax credits.
Nick Clegg wants them to pay a wealth tax.
The more things change in the Eurozone, the
more they stay the same. Structural reform
remains elusive.
After German business confidence fell for the
fifth month, is the euro crisis about to return?
The Eurozone is already in the middle of a recession. Production has
declined since the summer of 2011 and unemployment rates are
increasing in almost all euro members. In the last quarter, Germany
was the only country that had a relatively solid growth record. But,
looking forward, the picture remains gloomy. Growth in emerging
economies like China has been weak lately, and the US economy is
facing strong headwinds due to the need for fiscal consolidation.
Slowing demand from abroad will hurt European exports on top of
already weak internal demand. The chances are that solid growth
will return relatively quickly (perhaps as early as mid 2013) in
countries like Germany or the Netherlands. But, in the crisis
countries, the situation remains bleak. It looks more and more likely
that the economic situation will remain weak for the next five to ten
years, resulting in even higher unemployment and social unrest.
Ferdinand Fichtner is chief economist at DIW Berlin.
Ferdinand Fichtner
Chris Walker
It is hard to argue against the claim that the latest Ifo estimates of
German business sentiment are disappointing. The business
climate sub-component registered its fifth consecutive decline,
while the forward-looking sub-components indicate that
confidence in German industry remains in decline. However, putting
this survey in context is important. Firstly, the headline number
remains above its long term average and overall prospects are
relatively robust compared to most other Eurozone members.
Moreover, 50 per cent of the responses came before the German
constitutional courts European Stability Mechanism (ESM) ruling.
While a favourable result to the ruling was already priced into
financial markets, uncertainty at the time of the survey would likely
have still added an extra negative premium to business sentiment.
This has now, of course, been removed.
Chris Walker is a currency strategist at UBS.
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Rule No. Focus on sustainable
competitive advantage
banks tend to produce excess
returns on capital which can often
be sustained over the long term.
Assuming, that is, that they stick to
the simple business of lending and
deposit taking.
Hugh Young is managing director at
Aberdeen Asset Management Asia.
OME industries produce
more economic profit than
others. How much
economic profit a sector or
industry tends to produce
is often a function of how
difficult it is to enter. High entry
barriers can therefore provide a
sustainable competitive advantage
for incumbents. Take banking.
Unlike retailing or steel
manufacturing, there are all sorts
of obstacles to starting a bank.
Not only do you need licences
from one or more regulators, but
you have to build up trust with
depositors, as well as a network of
companies to lend to. As such,
OW quickly sentiment can
change. Last week, traders
were triumphantly jubilant
after central banks poured
liquidity into markets. If price
reflects all known information,
you would have thought that the
worlds financial ills were cured.
This week, the focus is back on
growth, or to be more specific the
lack of it. Although Spains Ibex
index recently rose above the 8,000
mark for the first time since April,
concerns are mounting over the
Spanish economy; liquidity alone
will not buy long-term growth.
Spain was given a reprieve by the
now infamous determination of
European Central Bank (ECB) presi-
dent Mario Draghi to do whatever
it takes to ensure the euros sur-
vival. The ECBs bond-buying pro-
gramme has given support to
Spanish bonds. But traders are far
from impressed by Spains compla-
cent attitude in requesting a
bailout. 10-year yields are creeping
up again, rising to 5.79 per cent
from September lows of 5.63 per
Spain will present a draft budget
and outline structural reforms on
Thursday, leading to speculation
that it may also announce a bailout.
But over-zealous markets have been
burnt by expectation in the past
and should be cautious.
Spains economy minister Luis de
Guindos cooled expectations over
the weekend. In a cavalier fashion,
he declared that Spain was in no
rush to seek a bailout. After his
comments, 1.5 per cent was wiped
off the value of Bankia, the Spanish
bank, and nearly 3 per cent from
Banco de Sabadell on Monday
Traders wanting to take a position
on Spain will naturally focus on
government debt. Good news will
inevitably lead to yield compres-
sion; negative news will see yields
rise further.
Another target is the banking sec-
tor, which expects to be bailed out
to the tune of between 60bn
(48bn) and 100bn. On Friday, the
results of stress tests performed on
Hesitant Spain is afraid
to pull bailout trigger
Heat rising on Spanish bonds
The market may force Spains hand, writes Yogesh Chandarana
Rebuilding dominance
den, which has risen dramatically.
Continuing economic weakness
and reliance on a potential bailout
would tip Spains credit rating to
junk. Moodys stated that Spain was
still on review and further down-
grades may come this month.
But Chris Beauchamp of IG Index
is unconcerned: Downgrades are
retrospective and dont have the
effect that they used to. Impact
would be limited to institutional
investors, which would be restricted
from purchasing Spanish debt.
David White of Spreadex believes
that, in the context of the bond pro-
gramme, the ECB has shown it is
prepared to act as a backstop and
investors know this. Rating agen-
cies are only playing catchup. The
real risk is more political.
Spain needs to make its inten-
tions clear to the market very soon.
If it does not, bond yields will con-
tinue to rise and Spain may need to
request a bailout sooner than it
would like.
Spanish banks will be published.
But how Spain will bail out its
banks depends on when it requests
financial assistance from the ECB.
Alarmingly, some believe that this
may not come until after regional
elections on 21 October.
Spain seems reluctant to request
help due to the strong conditions
that will be attached. German
Chancellor Angela Merkel has stat-
ed: Conditionality is a very impor-
tant point. Control and help, or
control and conditions, go hand in
hand. In Spain, such conditionali-
ty is akin to giving up sovereignty,
which the Spanish would loathe. It
is therefore likely that assistance
will only be requested as a last
Spain may have less time than it
thinks. Moodys downgraded
Spanish debt in June, citing con-
cerns that a bailout would
increase the countrys debt bur-
Euro-Swiss franc, September 2007-September 2012
2008 2009 2010 2012 2011
The contents of this column are provided for general information purposes only. One should consider the appropriateness
of the information in light of their own objectives, financial situation or needs before trading. CD11UK.074.010612
ENTRAL banks have never been
averse to interventionist strategies.
But the approach has certainly fallen
from favour and in spectacular
fashion on a couple of occasions in
recent memory.
Just over twenty years ago, the UK was
desperate to stay within the European
Exchange Rate Mechanism (ERM), a system
that required each member countrys
currency to be kept within a certain trading
range. Struggling with an overleveraged
housing market and a lacklustre domestic
economy, sterling wasnt proving to be a
terribly popular buy with anyone. Steadily,
the Bank of England started to hike up
interest rates in a desperate attempt to
make the pound a better proposition. But
George Soros famously kept adding trades
to the other side of the equation, shorting
the currency. Interest rates topped out at 15
per cent before time was called. The UK left
the ERM, the countrys recession was
prolonged, and the currency collapsed.
Soros made an estimated $1bn (617m)
from the venture.
Weve also seen repeated broadly
unsuccessful interventions by the Bank of
Japan over the years. Short-term
interventions have been sniffed out by the
market all too quickly. While the Bank of
Japan may have helped the countrys
lucrative export market from time to time
perhaps catching a few currency traders off
guard along the way such actions have
roundly failed to deliver any meaningful
A slightly less dramatic scene has been
played out with the Swiss franc. The
currency was proving incredibly popular, as
investors looked to find safe havens
especially for their euro holdings. Even with
interest rates at rock bottom levels, investors
were more than happy to buy into the
infallible Swiss franc, and the currency fell
from CHF1.60 against the euro in September
2008 to under CHF1.10 by July 2011. The
Swiss francs relentless march upwards in
value was having a crippling effect on
Switzerlands economy, and the Swiss
National Bank declared that it would start
buying foreign currency in unlimited
quantities to weaken its own currency. This
has been a hugely successful move and the
Swiss franc has seen little appreciation over
the last twelve months, trading in a
relatively tight channel around the target of
Perhaps the critical difference here is that
the Swiss National Bank had the foresight
and the firepower to realise it had to make
this an open-ended proposition, so as to not
enter into some kind of wealth transfer
agreement from itself to high end financiers.
Weve since seen this played out in the Feds
unlimited support programme, and also in
the European Central Banks unlimited
bond-buying scheme, which is designed to
stabilise the euro.
Will this act as a turning point in central
bank policy at the highest level? Against the
failed examples weve seen above, its
difficult to argue otherwise. Unless a banks
policy is open-ended, how can the relevant
central bank not end up making interim
moves that will simply be picked off by
those who understand this principle in the
market? It does, however, mean that youre
now seeing an ever-increasing risk of big
shifts occurring on currency pairs in a very
short space of time. Within minutes of an
announcement or indeed even just the
assumption in the market that some degree
of intervention will take place you can
expect the news to be fully priced in.
Understanding the significance this can
have for any trading plan is nothing short of
imperative. If ever there was a time to make
sure you protect yourself with a coherent risk
management strategy, that time has to be now.
S TALK of a housing recovery
gains momentum, investors
may be looking to add
growth-orientated stocks to
their portfolio. Persimmon
has seen tough times since the onset of
the financial crisis, with shares falling
from their peak above 1,500p.
However, the house builder has added
67 per cent to its share price this year
and is looking to build on that
momentum. Spread Co quotes a price
of 770.5p-772.5p for Persimmon.
It has been a wobbly year for Goals
Soccer Centres, after shareholders
rejected a takeover bid from one of
Canadas largest pension funds and it
was hit by an HMRC tax ruling. Traders
have been pessimistic on the five-a-
side football operator, believing that
cash-strapped Brits will be cutting
back on their football run-arounds in
the short term, while money remains
tight. Spreadex quotes a price of
122.5p-125.5p for Goal Soccer Centres.
Dominos Pizza will be updating
investors this week. Shares have been
volatile over the last 52-weeks, with a
range between 381.6p and 562.5p. But
traders expect that the company will
have benefitted from the Olympic
effect, as consumers stayed at home
watching events on TV. CMC Markets
quotes a price of 558.56p-560.94p for
Dominos Pizza.
ICAPreleases a trading statement
on Wednesday. But concerns that low-
trading volumes may have affected the
worlds largest inter-dealer broker
have brought caution from investors.
Capital Spreads quotes a price of
338.3p-339p for ICAP.
A string of positive updates from
Compass has emboldened investors,
and its shares have risen by over 35 per
cent this year. Another strong trading
statement may indicate further upside
in the value of the catering groups
shares. IG quotes a price of 705p-707p
for Compass Group.
Spanish 10yr bond yield
Sep2011 Mar 2012 Sep201
7.5 %
Uncertain spenders make for volatile markets, writes Craig Drake
US labour and spending statistics can get traders pulses racing
from a Thomson Reuters/University of
Michigan survey of consumers in the
US and the Confederation of British
Industry (CBI) Industrial Trends to
measure perceived uncertainty of con-
sumers and businesses. The Michigan
consumer survey asks respondents
each month whether they expect an
uncertain future to affect their spend-
ing on durable goods, such as motor
vehicles, over the coming year. The
note suggests that uncertainty has
pushed the unemployment rate up at
least one percentage point in the last
three years.
Although this can be taken with a
pinch of salt businesses dont put hir-
ing on hold because they are uncertain,
they stop hiring because they think the
economic situation will deteriorate
the trend can turn into a vicious cycle.
Businesses dont hire because they see
bad times ahead, and businesses not
hiring creates more bad times.
My pick: Long Australian dollar-dollar
Expertise: Fundamental and technical analysis
Average time frame of trades: A few hours to a few days
A descending trendline from the highs of 9 August and 23
August has kept the Australian dollar-dollar pair supported
over the past four days. A base could now be building for the
next move higher. Near-term resistance comes in at $1.0410
(a descending trendline from the 9 August and 23 August
highs), $1.0480, $1.0550, and $1.0615 (the August high).
Support comes in at $1.0365 (last weeks low), $1.0325 and
Traders fear nervous consumers
HE link between the
willingness of a consumer in
Indianapolis to go out and
buy a new car and the
volatility of an exchange-traded
derivative may not be immediately
obvious. But, in a world where
central banks have long since
abandoned traditional monetary
policy, interest rates are at rock
bottom, and the US Federal Reserve
is expanding its balance sheet by
$40bn (24.6bn) a month, US
spending habits and market
volatility start to fall into line.
As a note issued earlier in the
month by the San Francisco Fed
points out, this hasnt always been
the case. In the sharp downturn of
1981-82, uncertainty did not weigh
as heavily. But, today, the Fed can-
not use interest rates as a tool to try
and get the economy going again.
The chart on the right takes data
My pick: Stay short Australian dollar-Canadian dollar
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
I sold Australian dollar-Canadian dollar at Ca$1.0441 on 14
August to gain exposure to relative US and Chinese growth
expectations. The former economy is expected to accelerate this
year, while the latter slows. I added to the position at Ca$1.0370
on 24 August. Prices are stalling below resistance at Ca$1.0258,
after mounting a shallow recovery. I will continue to hold short,
expecting the down trend to resume. A stop-loss will be
triggered on a close above Ca$1.0283.
My pick: Long euro-sterling and dollar-yen, short sterling-dollar
Expertise: Fundamental and technical analysis
Average time frame of trades: 1 day to 1 week
The long sterling-Canadian dollar and short Australian dollar-
dollar setups from last week worked out well for short-term
targets, but follow-through was lacking. There arent any
high-level events or indicators that look like they can charge
serious risk trends. A euro-sterling reversal on former channel
resistance isnt risk dependent. I still like a sterling-dollar
reversal after a seven week rally below $1.6150, and a dollar-
yen wedge breakout above 78.50.
With the Fed seemingly unable to
get the US labour market moving,
this consumer uncertainty has indi-
rectly driven market volatility. The
chart on the right also plots the
Volatility Index (Vix) which tracks
the cost of using options to insure
against losses in the S&P500, and so
acts as a measure of perceived volatil-
ity in the equity markets. Since the
2001 dot com crash, the two have
traded closely.
What does all of this mean for
traders? Vix is a useful instrument to
use as a hedge against increasing
volatility. But, when compared with
consumer data, it also highlights the
importance of the US labour market
in the world economy. When a popu-
lation of 314m stops spending, mar-
kets will get nervous. And traders
looking for a way to predict market-
moving US policy steps should keep
an eye on these vital statistics.
Consumers perceived uncertainty and the Vix index
78 82 86 90 94 98 02 06 10
% Index
(left scale)
Vix index
(right scale)
LON GD ONCE FIX AM ..................................1758.50 -15.25
SILVERLDN FIX AM .........................................34.01 -0.48
MAPLE LEAF 1 OZ ............................................36.24 -0.48
LON PLATINUM AM.....................................1608.00 -27.00
LON PALLADIUM AM ....................................650.00 -25.00
ALUMINIUM CASH......................................2093.00 -2.00
COPPER CASH.............................................8281.50 80.50
LEAD CASH.................................................2276.00 49.00
NICKEL CASH............................................18000.00 405.00
TIN CASH.................................................. 21250.00 700.00
ZINC CASH .................................................2096.50 28.50
BRENT SPOT INDEX........................................110.96 2.23
SOYA............................................................1621.75 3.00
COCOA.........................................................2521.00 2.00
COFFEE..........................................................173.30 4.70
KRUG ..........................................................1825.40 -19.30
WHEAT.........................................................204.62 -1.75
AIR LIQUIDE ......................................................99.18 -0.31 100.00 74.37
ALLIANZ............................................................94.18 -0.80 97.33 56.43
ANHEUS-BUSCHINBEV .....................................67.01 -0.14 71.05 36.43
ARCELORMITTAL.................................................12.10 -0.29 17.96 10.47
ASML HOLDING ................................................40.98 -0.58 48.34 24.45
AXA...................................................................12.35 -0.12 13.25 7.88
BANCO SANTANDER............................................6.17 -0.08 6.33 3.98
BASF SE ............................................................67.48 -0.42 68.63 42.47
BAYER...............................................................67.70 0.20 68.47 35.57
BBVA ..................................................................6.47 -0.08 7.20 4.31
BMW................................................................59.64 -0.15 73.95 43.49
BNP PARIBAS....................................................39.07 -0.60 40.60 22.72
CARREFOUR........................................................17.15 -0.27 20.51 12.87
CRH PLC.............................................................15.44 -0.22 16.93 10.29
DAIMLER...........................................................40.10 -0.11 48.95 29.02
DANONE...........................................................49.48 -0.54 54.96 41.92
DEUTSCHE BANK...............................................32.79 -0.31 39.51 21.06
DEUTSCHE TELEKOM...........................................9.95 -0.09 10.06 7.69
E.ON..................................................................19.04 -0.07 19.74 14.01
ENEL....................................................................3.01 0.03 3.62 2.02
ENI.....................................................................17.99 -0.57 18.72 11.89
ESSILOR INTERNAT............................................73.59 -0.76 75.52 50.30
FRANCE TELECOM................................................9.77 -0.10 13.60 9.45
GDF SUEZ ..........................................................19.47 -0.03 24.13 15.62
GENERALI ASS. ...................................................11.77 -0.07 13.70 8.16
IBERDROLA.........................................................3.76 -0.02 5.08 2.63
INDITEX.............................................................97.60 -1.78 99.69 59.50
ING GROEP CVA..................................................6.59 -0.08 7.58 4.21
INTESA SANPAOLO ..............................................1.25 -0.01 1.65 0.85
KON.PHILIPS ELECTR..........................................18.67 -0.21 19.56 12.01
L'OREAL.............................................................97.33 0.21 102.50 68.83
LVMH...............................................................122.85 0.30 136.80 94.16
MUNICHRE .....................................................124.60 -0.35 125.85 77.80
NOKIA.................................................................2.10 -0.01 5.19 1.33
REPSOL ..............................................................16.15 -0.15 23.18 10.90
RWE..................................................................35.03 0.02 37.12 22.92
SAINT-GOBAIN .................................................29.46 -0.83 37.63 23.90
SANOFI .............................................................68.76 -0.29 69.24 45.52
SAP..................................................................56.04 -0.26 56.82 34.62
SCHNEIDER ELECTRIC........................................48.55 -0.48 53.47 35.00
SIEMENS...........................................................78.89 -0.26 80.36 62.13
SOCIETE GENERALE............................................23.41 -0.39 25.97 14.88
TELEFONICA .......................................................11.26 -0.10 15.55 7.90
TOTAL ...............................................................40.55 0.32 42.97 29.40
UNIBAIL-RODAMCO SE.....................................161.40 -1.05 165.85 123.30
UNICREDIT ..........................................................3.43 -0.03 7.01 2.20
UNILEVER CVA ..................................................27.99 -0.01 28.83 22.08
VINCI ................................................................34.80 -0.54 40.85 28.46
VIVENDI.............................................................15.42 -0.27 17.06 12.02
VOLKSWAGEN VORZ........................................154.90 -0.15 155.65 86.40
Price Chg High Low
FTSE 100 . . . . . . . . . . . . . . . . . . . . . 5838.84 -13.78 -0.24
FTSE 250 INDEX. . . . . . . . . . . . . . . . 11903.11 -46.92 -0.39
FTSE UK ALL SHARE. . . . . . . . . . . . . 3047.13 -7.89 -0.26
FTSE AIMALL SH . . . . . . . . . . . . . . . . 711.03 -5.37 -0.75
DOWJONES INDUS 30. . . . . . . . . . 13558.92 -20.55 -0.15
S&P 500 . . . . . . . . . . . . . . . . . . . . . 1456.89 -3.26 -0.22
NASDAQ COMPOSITE. . . . . . . . . . . . 3160.78 -19.18 -0.60
FTSEUROFIRST 300. . . . . . . . . . . . . . 1115.86 -3.60 -0.32
NIKKEI 225. . . . . . . . . . . . . . . . . . . 9069.29 -40.71 -0.45
DAX 30 PERFORMANCE . . . . . . . . . . 7413.16 -38.46 -0.52
CAC 40. . . . . . . . . . . . . . . . . . . . . . . 3497.22 -33.50 -0.95
SHANGHAI SE INDEX. . . . . . . . . . . . 2033.19 6.50 0.32
HANG SENG . . . . . . . . . . . . . . . . . 20694.70 -40.24 -0.19
S&P/ASX 20 INDEX. . . . . . . . . . . . . 2692.50 -13.40 -0.50
ASX ALL ORDINARIES . . . . . . . . . . 4409.20 -21.60 -0.49
BOVESPA SAO PAOLO . . . . . . . . . . 61909.99 589.92 0.96
ISEQ OVERALL INDEX . . . . . . . . . . . 3328.73 -14.82 -0.44
STRAITS TIMES . . . . . . . . . . . . . . . . 3067.93 -10.30 -0.33
IGBM . . . . . . . . . . . . . . . . . . . . . . . . 820.00 -8.78 -1.06
SWISS MARKET INDEX . . . . . . . . . . 6597.22 -8.60 -0.13
Price Chg %chg
3M ....................................................................93.73 0.52 94.30 68.63
ABBOTT LABS....................................................69.61 -0.01 69.99 48.96
ALCOA................................................................9.06 -0.07 11.66 7.97
ALTRIA GROUP..................................................34.21 0.15 36.29 25.27
AMAZON.COM .................................................254.81 -2.67 264.11 166.97
AMERICAN EXPRESS .........................................57.67 -0.19 61.42 41.30
AMGEN INC .......................................................82.91 0.88 85.28 52.85
APPLE ............................................................690.79 -9.31 705.07 354.24
AT&T .................................................................38.25 0.17 38.58 27.41
BANK OF AMERICA .............................................9.10 -0.01 10.10 4.92
BOEING CO .......................................................70.03 0.06 77.83 56.90
CATERPILLAR....................................................90.87 -0.85 116.95 67.54
CHEVRON.........................................................117.78 -0.03 118.53 86.68
CISCO SYSTEMS..................................................18.81 -0.10 21.30 14.93
CITIGROUP........................................................33.49 -0.18 38.40 21.40
COCA-COLA........................................................38.12 0.09 40.67 31.67
COMCAST CLASS A............................................36.43 0.21 36.54 19.72
CONOCOPHILLIPS..............................................57.96 0.60 79.96 50.62
DU PONT(EI) DE NMR ........................................51.19 -0.61 57.50 37.10
EBAY.................................................................49.31 -0.16 50.65 27.41
EXXON MOBIL ...................................................91.88 -0.04 92.50 67.93
GENERAL ELECTRIC...........................................22.36 -0.17 22.69 14.02
GOOGLE A.......................................................749.38 15.39 750.04 480.60
HEWLETT PACKARD............................................17.21 -0.38 30.00 16.77
HOME DEPOT....................................................59.39 -0.03 60.00 31.03
IBM ................................................................205.29 -0.69 210.69 165.76
INTEL CORP......................................................22.80 -0.33 29.27 20.40
J.P.MORGAN CHASE...........................................41.23 0.35 46.49 27.85
JOHNSON & JOHNSON.....................................69.00 -0.06 69.75 55.76
KRAFT FOODS A................................................41.63 -0.15 42.44 31.88
MC DONALD'S CORP..........................................93.71 0.00 102.22 83.74
MERCK AND CO. NEW.......................................45.14 0.23 45.25 30.54
MICROSOFT.......................................................30.78 -0.41 32.95 24.26
OCCID. PETROLEUM...........................................86.81 -0.58 106.68 66.36
ORACLE CORP ...................................................32.23 -0.25 33.81 24.91
PEPSICO ...........................................................70.70 0.15 73.66 58.50
PFIZER..............................................................24.75 0.24 24.84 16.82
PHILIP MORRIS INTL ..........................................92.13 -0.01 93.60 60.45
PROCTER AND GAMBLE....................................69.76 0.34 69.85 59.07
QUALCOMM INC................................................63.67 -0.60 68.87 46.40
SCHLUMBERGER...............................................74.26 -0.76 80.78 54.79
TRAVELERS CIES...............................................68.42 -0.19 68.99 45.97
UNITED TECHNOLOGIE......................................80.03 -0.72 87.50 66.87
UNITEDHEALTH GROUP....................................55.98 -0.20 60.75 41.32
US BANCORP DELAWRE ....................................34.18 0.33 35.15 21.84
VERIZON COMMS..............................................45.68 0.04 46.41 35.06
VISA CL A.........................................................133.74 -1.26 136.65 81.71
WAL-MART STORES...........................................74.74 0.29 75.24 49.94
WALT DISNEY CO..............................................52.92 0.18 53.39 28.19
WELLS FARGO & CO...........................................35.10 0.13 36.60 22.61
BoE IR Overnight.........................................0.500 0.00
BoE IR 7 days..............................................0.500 0.00
BoE IR 1 month...........................................0.500 0.00
BoE IR 3 months.........................................0.500 0.00
BoE IR 6 months ........................................0.500 0.00
LIBOR Euro - overnight ................................0.017 0.00
LIBOR Euro - 12 months ..............................0.669 0.00
LIBOR USD - overnight..................................0.151 0.00
LIBOR USD - 12 months ...............................0.982 0.00
Halifax mortgage rate ................................3.990 -0.02
Euro Base Rate ............................................0.750 0.00
Finance house base rate .............................1.000 0.00
US Fed funds ...............................................0.260 0.00
US long bond yield .....................................2.900 -0.03
European repo rate......................................0.017 0.00
Euro Euribor ................................................0.085 0.00
The vix index................................................14.38 0.40
The baltic dry index.....................................774.0 0.00
Markit iBoxx...............................................254.37 0.43
Markit iTraxx...............................................122.84 -0.25
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
BAE Systems . . . . . . . . .334.6 -5.5 363.6 251.4
Chemring Group . . . . . .329.0 -7.4 546.5 267.3
Cobham . . . . . . . . . . . .228.0 -0.7 239.5 165.9
Meggitt . . . . . . . . . . . . .398.9 -3.8 413.5 316.8
QinetiQ Group . . . . . . . .182.9 11.1 184.4 113.3
Rolls-Royce Holdi . . . . .851.5 -7.0 890.0 571.0
Senior . . . . . . . . . . . . . .207.0 -3.1 213.8 135.6
Ultra Electronics . . . . . .1572.0 7.0 1780.0 1400.0
GKN . . . . . . . . . . . . . . . .218.9 -7.1 237.2 157.0
Bank of Georgia H . . . .1277.0 -8.0 1330.0 929.8
Barclays . . . . . . . . . . . . .220.3 -3.5 256.8 144.4
HSBC Holdings . . . . . . .585.0 0.8 587.8 463.5
Lloyds Banking Gr . . . . . .40.1 -0.1 40.5 21.8
Royal Bank of Sco . . . . .271.5 -4.3 291.7 173.4
Standard Chartere . . .1480.5 -7.0 1662.5 1169.5
Barr (A.G.) . . . . . . . . . . .459.9 8.9 481.6 348.0
Britvic . . . . . . . . . . . . . .365.3 1.3 398.0 260.1
Diageo . . . . . . . . . . . . .1724.0 1.5 1764.5 1209.5
SABMiller . . . . . . . . . . .2706.5 5.5 2868.5 2005.0
AZ Electronic Mat . . . . . .340.1 -0.8 342.0 206.1
Croda Internation . . . .2416.0 -14.0 2466.0 1597.0
Elementis . . . . . . . . . . .233.8 0.4 240.3 107.5
Johnson Matthey . . . .2487.0 -42.0 2573.0 1522.5
Victrex . . . . . . . . . . . . .1348.0 -27.0 1516.0 1025.0
Yule Catto & Co . . . . . . .167.2 -4.4 251.0 127.4
/$ 1.2913 0.0061
/ 0.7972 0.0017
/ 100.58 0.8231
/ 1.2544 0.0026
/$ 1.6198 0.0042
/ 126.17 0.7746
FTSE 100
FTSE 250
Carpetright . . . . . . . . . .655.5 3.5 728.5 375.0
Debenhams . . . . . . . . . .103.1 -0.9 104.0 56.0
Dignity . . . . . . . . . . . . . .921.5 -2.0 951.5 755.5
Dixons Retail . . . . . . . . .19.5 -0.2 20.3 9.4
DunelmGroup . . . . . . .662.0 -23.0 685.0 421.3
Halfords Group . . . . . . .262.7 -6.1 342.3 189.0
Home Retail Group . . . . .92.4 -1.1 131.6 69.2
Inchcape . . . . . . . . . . . .370.1 -2.9 418.2 268.6
JD Sports Fashion . . . . .720.5 -11.5 863.0 570.0
Kingsher . . . . . . . . . . .270.8 -2.2 313.8 234.9
Marks & Spencer G . . . .369.5 -2.1 389.5 302.7
Next . . . . . . . . . . . . . .3448.0 -2.0 3644.0 2446.0
Sports Direct Int . . . . . .352.6 3.7 352.6 190.0
Ted Baker . . . . . . . . . . . .911.0 -8.0 1017.0 633.0
WHSmith . . . . . . . . . . .643.5 8.5 643.5 471.7
NMC Health . . . . . . . . . .190.0 -3.0 230.0 186.0
Smith & Nephew . . . . .693.0 7.0 694.0 540.5
Synergy Health . . . . . .904.5 -7.5 957.0 762.5
Barratt Developme . . . .173.0 0.5 173.3 72.9
Bellway . . . . . . . . . . . . .930.0 -0.5 950.0 609.5
Berkeley Group Ho . . . .1511.0 6.0 1540.0 1145.0
Bovis Homes Group . . .506.5 1.5 518.5 399.3
Persimmon . . . . . . . . . .770.5 -1.0 790.0 440.0
Balfour Beatty . . . . . . . .310.1 -2.1 312.2 214.6
CRH . . . . . . . . . . . . . . .1230.0 -16.0 1420.0 1052.0
Galliford Try . . . . . . . . . .718.0 7.5 718.5 410.0
Kier Group . . . . . . . . . .1288.0 -22.0 1489.0 1095.0
Drax Group . . . . . . . . . .521.0 -1.5 581.5 442.0
SSE . . . . . . . . . . . . . . . .1389.0 -8.0 1445.0 1209.0
Dialight . . . . . . . . . . . .1199.0 -6.0 1215.0 685.0
Domino Printing S . . . .570.0 8.0 670.0 434.3
Halma . . . . . . . . . . . . . .431.5 -10.0 448.5 306.3
Laird . . . . . . . . . . . . . . .225.3 -0.7 243.9 128.5
Morgan Crucible C . . . . .273.9 -4.3 360.0 224.0
Oxford Instrument . . . .1316.0 -37.0 1387.0 714.0
Renishaw . . . . . . . . . . .1601.0 -23.0 1666.0 800.0
Spectris . . . . . . . . . . . .1789.0 -38.0 1902.0 1039.0
Aberforth Smaller . . . .664.0 3.0 666.0 494.0
Alliance Trust . . . . . . . .370.8 -3.2 378.2 310.2
Bankers Inv Trust . . . . .427.0 2.0 433.8 346.5
BH Global Ltd. GB . . . . .1169.0 7.0 1212.0 1135.0
BH Global Ltd. US . . . . . . .11.6 0.0 12.2 11.1
BH Macro Ltd. EUR . . . . . .19.1 -0.0 20.2 18.3
BH Macro Ltd. GBP . . . .1975.0 15.0 2078.0 1892.0
BH Macro Ltd. USD . . . . . .19.0 0.0 20.2 18.2
BlackRock World M . . .586.0 -1.5 747.0 525.0
BlueCrest AllBlue . . . . .166.0 -0.4 171.5 160.5
British Assets Tr . . . . . . .122.7 -0.1 130.0 109.0
British Empire Se . . . . . .434.1 -0.6 476.2 386.6
Caledonia Investm . . .1453.0 -2.0 1599.0 1237.0
City of London In . . . . . .314.6 -1.8 318.6 258.0
Dexion Absolute L . . . . .138.5 1.0 142.0 130.0
Edinburgh Dragon . . . .244.3 -1.1 253.1 201.4
Edinburgh Inv Tru . . . . .519.0 0.5 529.5 436.0
Electra Private E . . . . . .1755.0 16.0 1755.0 1292.0
Fidelity China Sp . . . . . . .71.2 -0.4 88.9 70.0
Fidelity European . . . . .1173.0 -2.0 1200.0 912.0
Foreign and Colon . . . . .317.2 -0.3 318.2 261.5
Herald Inv Trust . . . . . .520.0 0.5 527.5 419.0
HICL Infrastructu . . . . . .121.0 0.5 123.9 114.5
John Laing Infras . . . . .106.7 0.2 111.3 103.8
JPMorgan American . . .967.0 -0.5 970.0 757.5
JPMorgan Emerging . . .541.5 2.5 583.0 480.1
JPMorgan Indian I . . . . .362.5 1.8 400.4 303.4
LawDebenture Cor . . .399.0 -6.1 420.9 323.0
Mercantile Invest . . . . .1061.0 -6.0 1080.0 823.0
Merchants Trust . . . . . .373.6 -0.4 392.7 341.5
Monks Inv Trust . . . . . . .313.3 -2.4 343.6 298.1
Murray Income Tru . . . .690.0 7.0 690.0 568.0
Murray Internatio . . . .1036.0 1.0 1042.9 818.5
NB Global Floatin . . . . . .99.2 0.2 100.8 92.5
Perpetual Income . . . .280.5 0.5 283.0 236.5
Personal Assets T . . .35450.0-250.0 36000.0 32340.0
Polar Capital Tec . . . . . .397.5 -1.0 404.0 307.0
RIT Capital Partn . . . . .1162.0 -3.0 1360.0 1096.0
Scottish Inv Trus . . . . . .485.3 -0.6 495.5 417.0
Scottish Mortgage . . . . .712.0 -3.0 720.5 565.0
SVG Capital . . . . . . . . . .271.0 -5.0 295.5 165.1
Temple Bar Inv Tr . . . . .960.0 -6.0 977.0 794.0
Templeton Emergin . . .558.5 -1.0 633.5 497.0
TRProperty Inv T . . . . . .163.1 -2.4 173.9 136.2
TRProperty Inv T . . . . . . .71.0 -1.5 76.3 59.8
Utilico Emerging . . . . .160.5 -3.3 169.5 133.8
Witan Inv Trust . . . . . . .491.0 -2.2 505.5 401.5
Worldwide Healthc . . .856.0 -0.5 856.5 671.5
3i Group . . . . . . . . . . . .226.2 -1.6 227.9 166.9
3i Infrastructure . . . . . . .122.8 0.0 128.0 117.0
Aberdeen Asset Ma . . .308.0 -0.5 310.2 167.8
Ashmore Group . . . . . .347.0 1.9 402.7 306.4
Brewin Dolphin Ho . . . . .170.1 -0.4 177.0 113.7
Camellia . . . . . . . . . . .9849.0 0.0 10250.0 8800.0
Charles Taylor . . . . . . . .181.0 5.8 187.0 115.6
City of London Gr . . . . . .76.5 0.0 81.0 61.3
City of London In . . . . . .331.5 -0.8 390.0 304.3
Close Brothers Gr . . . . .850.5 1.5 853.6 590.0
F&C Asset Managem . . .95.2 0.7 96.0 56.1
Hargreaves Lansdo . . . .635.0 -4.0 654.0 412.2
Helphire Group . . . . . . . . .1.0 -0.0 3.2 0.8
Henderson Group . . . . . .111.2 -1.9 128.3 90.6
Highway Capital . . . . . . .16.5 0.0 17.0 12.0
ICAP . . . . . . . . . . . . . . .340.0 -1.5 446.3 301.1
IG Group Holdings . . . . .451.5 -0.7 502.5 409.4
Intermediate Capi . . . . .311.0 1.3 321.5 197.9
International Per . . . . .306.4 -2.3 326.6 148.5
International Pub . . . . . .121.2 -0.1 124.9 113.9
Investec . . . . . . . . . . . . .385.6 -1.4 414.9 310.4
IP Group . . . . . . . . . . . . .128.9 0.1 155.0 44.5
Jupiter Fund Mana . . . .247.7 -2.3 268.8 188.5
Liontrust Asset M . . . . .102.0 -0.5 125.0 57.9
LMS Capital . . . . . . . . . . .64.0 1.0 68.8 54.0
London Finance & . . . . .19.0 0.0 23.5 18.0
London Stock Exch . . .1074.0 -3.0 1105.0 756.5
Lonrho . . . . . . . . . . . . . . .9.4 -0.9 15.5 6.7
Man Group . . . . . . . . . . .87.0 -1.6 239.6 63.3
Paragon Group Of . . . .207.5 0.9 217.3 143.1
Provident Financi . . . .1392.0 1.0 1408.0 915.0
Rathbone Brothers . . .1324.0 0.0 1373.0 989.0
Real Estate Credi . . . . . .89.9 -1.1 103.8 79.5
Record . . . . . . . . . . . . . . .17.8 0.4 29.3 9.8
S & U . . . . . . . . . . . . . . .827.5 22.5 870.0 597.5
Schroders . . . . . . . . . . .1553.0 -6.0 1650.0 1166.0
Tullett Prebon . . . . . . . .298.1 -4.6 381.2 260.0
Walker Crips Grou . . . . . .36.5 0.0 46.5 35.0
BT Group . . . . . . . . . . . .233.5 1.5 236.8 163.8
Cable & Wireless . . . . . .37.9 0.2 45.2 27.3
COLT Group SA . . . . . . . . .118.1 1.0 127.4 84.1
KCOM Group . . . . . . . . . .85.2 0.5 86.3 65.6
TalkTalk Telecom . . . . .188.8 0.3 196.6 118.9
TelecomPlus . . . . . . . . .854.5 -5.5 890.0 612.0
Booker Group . . . . . . . . .94.3 0.4 97.8 69.4
Greggs . . . . . . . . . . . . . .507.0 3.5 558.0 457.0
Morrison (Wm) Sup . . .294.1 0.2 328.0 263.0
Ocado Group . . . . . . . . . .65.0 0.7 131.8 52.9
Sainsbury (J) . . . . . . . . .347.8 2.9 349.5 266.3
Tesco . . . . . . . . . . . . . . .337.7 -2.4 411.3 297.1
Associated Britis . . . . .1298.0 6.0 1336.0 1069.0
Cranswick . . . . . . . . . . .797.0 3.5 858.0 615.0
Dairy Crest Group . . . . .340.0 2.1 361.0 290.4
Devro . . . . . . . . . . . . . .320.9 0.8 332.2 232.1
Tate & Lyle . . . . . . . . . .660.0 0.0 720.5 592.5
Unilever . . . . . . . . . . .2289.0 -3.0 2334.0 1977.0
Mondi . . . . . . . . . . . . . . .611.0 -5.0 631.0 413.5
Centrica . . . . . . . . . . . . .338.3 1.1 340.2 278.8
National Grid . . . . . . . . .687.5 1.0 703.5 597.5
Pennon Group . . . . . . . .747.0 1.0 796.0 663.0
Severn Trent . . . . . . . .1739.0 7.0 1796.0 1454.0
United Utilities . . . . . . .727.0 5.0 730.6 589.0
Cookson Group . . . . . . .620.0 -10.5 747.5 395.8
Rexam . . . . . . . . . . . . . .437.3 0.9 444.6 299.8
RPC Group . . . . . . . . . . .436.6 -0.5 447.0 313.0
Smith (DS) . . . . . . . . . . .188.2 -4.3 192.5 113.3
Smiths Group . . . . . . .1048.0 3.0 1113.0 869.5
Brown (N.) Group . . . . .274.3 6.9 282.7 222.4
Price Chg High Low
Reckitt Benckiser . . . .3638.0 39.0 3679.0 3100.0
Redrow . . . . . . . . . . . . .154.4 1.0 155.1 90.2
Taylor Wimpey . . . . . . . .55.2 -0.1 58.0 33.9
Bodycote . . . . . . . . . . . .388.6 -11.4 437.1 225.6
Fenner . . . . . . . . . . . . . .394.9 -5.1 483.7 280.0
IMI . . . . . . . . . . . . . . . . .927.0 -14.5 1022.0 636.5
Melrose . . . . . . . . . . . . .242.7 -3.9 259.6 152.5
Rotork . . . . . . . . . . . . .2314.0 -8.0 2330.0 1511.0
Spirax-Sarco Engi . . . .2163.0 -29.0 2334.0 1708.0
Weir Group . . . . . . . . . .1741.0 -30.0 2236.0 1375.0
Evraz . . . . . . . . . . . . . . .261.5 -10.4 460.5 211.5
Ferrexpo . . . . . . . . . . . . .210.1 -5.4 366.3 147.5
Talvivaara Mining . . . . .157.6 -7.0 359.1 122.0
BBA Aviation . . . . . . . . .202.7 -0.3 218.8 159.6
Stobart Group Ltd . . . . .116.5 2.0 137.0 110.3
Admiral Group . . . . . .1095.0 5.0 1382.0 787.0
Amlin . . . . . . . . . . . . . .398.0 -3.0 401.0 270.6
Beazley . . . . . . . . . . . . .168.5 2.0 169.5 113.5
Catlin Group Ltd. . . . . . .478.6 2.1 481.5 356.0
Hiscox Ltd. . . . . . . . . . .480.8 -3.7 484.8 359.0
Jardine Lloyd Tho . . . . .765.0 0.0 790.0 620.0
Johnston Press . . . . . . . . .8.0 0.4 8.3 4.1
MecomGroup . . . . . . . . .80.5 -2.3 226.5 51.0
Moneysupermarket. . . .139.6 1.2 144.8 93.4
Pearson . . . . . . . . . . . . .1217.0 0.0 1294.0 1069.0
PerformGroup . . . . . . .385.0 -6.0 421.0 190.0
Reed Elsevier . . . . . . . .600.0 -7.5 607.5 469.4
Rightmove . . . . . . . . .1560.0 -5.0 1679.0 1180.0
STV Group . . . . . . . . . . . .92.6 2.1 119.5 76.3
Tarsus Group . . . . . . . . .177.5 -1.5 183.0 119.5
Trinity Mirror . . . . . . . . . .51.5 -1.5 54.3 25.5
UBM . . . . . . . . . . . . . . . .702.5 -5.0 725.5 429.2
UTVMedia . . . . . . . . . . .130.0 -0.3 159.5 92.5
Wilmington Group . . . .120.0 -1.8 122.0 78.5
WPP . . . . . . . . . . . . . . .866.5 -3.5 880.0 578.0
African Barrick G . . . . . .458.9 -8.5 569.5 309.8
Anglo American . . . . . .1887.5 -50.5 2910.0 1748.5
Antofagasta . . . . . . . .1260.0 -16.0 1399.0 900.5
BHP Billiton . . . . . . . . .1948.5 -8.5 2206.5 1667.0
Bumi . . . . . . . . . . . . . . . .147.6 -48.3 934.5 119.5
Centamin (DI) . . . . . . . . .91.8 -3.9 115.3 60.7
Eurasian Natural . . . . .330.6 -13.9 749.5 296.1
Fresnillo . . . . . . . . . . . .1803.0 -30.0 1913.0 1307.0
Glencore Internat . . . . .354.2 -7.9 482.6 293.6
Hochschild Mining . . . .488.5 3.5 532.5 365.9
Kazakhmys . . . . . . . . . .714.0 -15.0 1214.0 570.0
Lancashire Holdin . . . . .837.5 13.5 837.6 680.0
RSA Insurance Gro . . . . .119.0 -0.2 121.5 97.7
Aviva . . . . . . . . . . . . . . .329.1 1.0 382.6 255.3
Legal & General G . . . . .134.7 -0.6 138.0 89.8
Old Mutual . . . . . . . . . . .173.1 -0.6 188.1 112.1
Phoenix Group Hol . . . .510.0 -12.0 590.0 405.3
Prudential . . . . . . . . . . .823.0 -3.0 854.0 509.0
Resolution Ltd. . . . . . . .222.0 -2.4 287.2 190.3
St James's Place . . . . . .368.6 -2.4 375.0 294.0
Standard Life . . . . . . . . .277.8 -0.8 283.1 185.1
4Imprint Group . . . . . . .329.5 3.5 342.0 202.0
Aegis Group . . . . . . . . . .237.4 -0.1 238.4 115.7
Bloomsbury Publis . . . .133.6 -4.4 146.5 91.3
British Sky Broad . . . . .738.5 5.5 773.0 635.5
Centaur Media . . . . . . . .42.3 1.3 45.1 28.5
Chime Communicati . .220.5 -1.3 255.0 143.0
Creston . . . . . . . . . . . . . .90.0 -0.9 92.5 47.0
Euromoney Institu . . . .757.0 -6.0 828.0 582.0
Future . . . . . . . . . . . . . . . .9.6 -0.6 13.4 8.3
Haynes Publishing . . . .195.0 0.0 235.0 165.0
Hibu . . . . . . . . . . . . . . . . .0.4 0.0 6.3 0.4
Huntsworth . . . . . . . . . .50.0 1.0 68.5 32.3
Informa . . . . . . . . . . . . .415.7 -1.3 451.0 313.9
ITE Group . . . . . . . . . . .206.6 0.6 240.6 157.7
ITV . . . . . . . . . . . . . . . . . .88.1 -1.9 91.2 55.4
Kenmare Resources . . . .43.0 0.1 61.5 31.0
Lonmin . . . . . . . . . . . . .578.5 -15.5 1166.0 529.5
NewWorld Resourc . . .283.5 -7.7 598.0 268.9
Petra Diamonds Lt . . . . .118.0 8.3 188.2 97.0
Petropavlovsk . . . . . . . .424.3 -15.3 813.0 347.9
Polymetal Interna . . . .1079.0 -3.0 1175.0 765.0
Randgold Resource . .7485.0 -35.0 7565.0 4596.0
Rio Tinto . . . . . . . . . . .2980.0 -61.0 3988.0 2712.5
Vedanta Resources . . .1056.0 -30.0 1502.0 832.5
Xstrata . . . . . . . . . . . . .999.8 -5.2 1283.0 764.0
Inmarsat . . . . . . . . . . . .583.5 -5.5 596.5 389.3
Vodafone Group . . . . . .178.0 -0.5 191.3 161.6
Genesis Emerging . . . .518.0 -4.0 525.0 424.0
Afren . . . . . . . . . . . . . . .140.3 -0.8 150.0 73.6
BG Group . . . . . . . . . . .1253.5 7.5 1547.0 1144.0
BP . . . . . . . . . . . . . . . . .443.0 2.0 504.6 372.0
Cairn Energy . . . . . . . . .285.0 1.2 360.0 248.2
EnQuest . . . . . . . . . . . . .116.0 -0.1 132.6 85.7
Essar Energy . . . . . . . . .120.0 -1.7 326.4 99.1
Heritage Oil . . . . . . . . . .208.7 -1.5 247.0 115.1
Ophir Energy . . . . . . . .598.5 0.5 641.0 223.7
Premier Oil . . . . . . . . . .362.9 -1.5 449.7 318.4
Royal Dutch Shell . . . .2199.5 -2.0 2756.5 1928.5
Royal Dutch Shell . . . .2256.5 -4.0 2489.0 1941.0
Ruspetro . . . . . . . . . . . .108.6 0.6 230.0 100.0
Salamander Energy . . . .198.1 -1.1 212.9 148.0
Soco Internationa . . . . .349.1 0.8 354.9 254.9
TullowOil . . . . . . . . . . .1388.0 8.0 1601.0 1236.0
Amec . . . . . . . . . . . . . .1162.0 -10.0 1172.0 740.5
Hunting . . . . . . . . . . . . .853.5 -14.0 968.0 530.0
Kentz Corporation . . . .434.7 -5.3 508.0 325.0
Petrofac Ltd. . . . . . . . .1608.0 -25.0 1772.0 1108.0
Wood Group (John) . . .812.0 -5.0 860.0 469.9
Burberry Group . . . . . .1029.0 -7.0 1586.0 1025.0
PZ Cussons . . . . . . . . . . .307.2 -4.7 374.2 285.0
Supergroup . . . . . . . . . .652.5 6.0 1072.0 264.5
AstraZeneca . . . . . . . .2962.5 20.5 3111.5 2591.0
BTG . . . . . . . . . . . . . . . . .323.5 -0.2 423.0 238.0
Dechra Pharmaceut . . .587.0 5.0 601.5 418.3
Genus . . . . . . . . . . . . . .1474.0 0.0 1483.0 965.0
GlaxoSmithKline . . . . .1442.0 5.0 1507.5 1309.5
Hikma Pharmaceuti . . .742.0 -7.0 774.0 557.5
Shire Plc . . . . . . . . . . . .1845.0 31.0 2300.0 1743.0
Capital & Countie . . . . . .213.3 2.4 221.8 158.1
Daejan Holdings . . . . .2899.0 -41.0 3323.0 2340.0
F&C Commercial Pr . . . .102.5 -1.5 107.3 94.0
Grainger . . . . . . . . . . . .108.6 -2.8 116.0 77.3
London & Stamford . . . .114.0 -0.2 121.4 101.8
Raven Russia Ltd . . . . . . .67.5 -1.6 69.5 48.8
Savills . . . . . . . . . . . . . .400.2 0.2 416.5 256.2
St. Modwen Proper . . . .193.1 -3.3 220.0 103.5
UK Commercial Pro . . . .66.5 -0.8 79.0 65.1
Unite Group . . . . . . . . .246.0 -3.3 260.0 154.1
Big Yellow Group . . . . . .313.0 0.0 330.0 218.0
British Land Co . . . . . . .524.5 -2.0 549.5 444.0
Capital Shopping . . . . .334.4 -0.7 354.2 288.7
Derwent London . . . . .1971.0 17.0 2021.0 1400.0
Great Portland Es . . . . .452.9 0.3 457.4 312.9
Hammerson . . . . . . . . .449.2 0.6 474.5 345.2
Hansteen Holdings . . . . .78.6 -0.5 80.0 68.0
Land Securities G . . . . .764.0 -3.0 815.0 612.0
SEGRO . . . . . . . . . . . . . .228.8 -2.7 259.2 195.0
Shaftesbury . . . . . . . . .524.5 1.0 549.0 445.2
Workspace Group . . . . .260.5 -1.5 267.5 212.5
Anite . . . . . . . . . . . . . . .129.0 0.0 132.3 61.5
Aveva Group . . . . . . . .1964.0 -13.0 1984.0 1298.0
Computacenter . . . . . . .377.4 10.2 461.9 292.4
Fidessa Group . . . . . . .1500.0 9.0 1766.0 1394.0
Invensys . . . . . . . . . . . .238.8 -3.0 257.0 180.9
Micro Focus Inter . . . . .583.0 5.0 584.0 308.3
Playtech Ltd. . . . . . . . . .373.8 -6.2 396.0 215.5
Sage Group . . . . . . . . . . .317.1 -7.7 324.8 247.7
SDL . . . . . . . . . . . . . . . .675.0 0.0 756.0 586.0
Telecity Group . . . . . . . .882.5 6.5 895.0 542.5
Aggreko . . . . . . . . . . .2359.0 11.0 2400.0 1522.0
Ashtead Group . . . . . . .337.4 -3.0 340.4 124.3
Atkins (WS) . . . . . . . . .694.0 -0.5 799.0 490.2
Babcock Internati . . . . .922.5 -3.0 947.5 647.0
Berendsen . . . . . . . . . .545.0 5.0 565.0 402.7
Bunzl . . . . . . . . . . . . . .1098.0 -5.0 1167.0 761.5
Capita . . . . . . . . . . . . . .775.5 -2.0 777.5 602.0
Carillion . . . . . . . . . . . . .278.5 -4.5 361.9 235.5
De La Rue . . . . . . . . . . .985.0 -7.5 1074.0 790.0
Diploma . . . . . . . . . . . .467.9 10.2 471.3 284.0
Electrocomponents . . . .223.1 -2.0 263.0 182.2
Experian . . . . . . . . . . .1032.0 0.0 1034.0 695.0
Filtrona PLC . . . . . . . . . .531.0 2.0 540.0 313.2
G4S . . . . . . . . . . . . . . . .267.9 -0.7 292.1 219.9
Hays . . . . . . . . . . . . . . . . .81.0 -1.0 92.5 58.9
Homeserve . . . . . . . . . .224.5 -1.4 485.3 137.5
Howden Joinery Gr . . . .148.0 -1.0 151.5 96.4
Interserve . . . . . . . . . . . .370.1 0.1 377.9 270.1
Intertek Group . . . . . .2764.0 -12.0 2861.0 1744.0
Menzies(John) . . . . . . .632.0 -13.0 652.0 475.0
Michael Page Inte . . . . .377.9 -5.1 497.0 323.0
Mitie Group . . . . . . . . . .286.9 1.2 296.7 221.2
PayPoint . . . . . . . . . . . .735.0 9.5 753.0 470.0
Premier Farnell . . . . . . .180.0 0.4 228.8 144.5
Regus . . . . . . . . . . . . . . .102.4 -0.6 117.5 64.1
Rentokil Initial . . . . . . . .83.4 -1.1 89.9 58.2
RPS Group . . . . . . . . . . .246.8 0.5 256.6 156.6
Serco Group . . . . . . . . .593.5 -0.5 602.0 458.0
Shanks Group . . . . . . . . .90.2 1.6 115.9 75.8
SIG . . . . . . . . . . . . . . . . .104.7 2.1 123.2 77.0
Travis Perkins . . . . . . .1055.0 -30.0 1125.0 715.0
Wolseley . . . . . . . . . . .2683.0 -35.0 2811.0 1425.0
ARM Holdings . . . . . . . .572.5 -6.0 645.0 469.0
CSR . . . . . . . . . . . . . . . . .311.8 0.1 338.4 154.1
Imagination Techn . . . .512.5 -19.0 717.0 406.7
Pace . . . . . . . . . . . . . . . .168.3 3.1 180.0 44.0
Spirent Communica . . .160.6 -1.9 174.0 105.8
British American . . . .3203.0 -21.0 3488.0 2702.0
Imperial Tobacco . . . .2352.0 -13.0 2595.0 2086.0
Betfair Group . . . . . . . . .747.5 2.5 901.0 660.5 Digita . . . . .105.8 -2.4 174.0 91.9
Carnival . . . . . . . . . . . .2266.0 -3.0 2369.0 1841.0
Compass Group . . . . . . .711.5 7.0 727.0 512.5
Domino's Pizza Gr . . . .559.0 -3.5 567.0 393.1
easyJet . . . . . . . . . . . . .589.0 -4.5 598.0 333.3
FirstGroup . . . . . . . . . . .249.8 2.7 345.3 187.4
Go-Ahead Group . . . . .1363.0 -10.0 1481.0 1086.0
Greene King . . . . . . . . .604.0 2.0 611.0 411.4
InterContinental . . . . .1647.0 7.0 1725.0 973.0
International Con . . . . .158.5 0.3 189.7 132.0
Ladbrokes . . . . . . . . . . .184.6 -0.1 185.9 114.0
Marston's . . . . . . . . . . . .115.5 -0.4 116.6 84.6
Millennium& Copt . . . .498.0 6.7 513.0 371.2
Mitchells & Butle . . . . . .286.1 2.9 289.3 215.6
National Express . . . . .220.0 -1.9 252.0 180.0
Rank Group . . . . . . . . . .145.0 1.6 150.9 111.0
Restaurant Group . . . . .355.7 3.7 360.6 268.2
Stagecoach Group . . . .285.9 0.1 297.2 230.4
TUI Travel . . . . . . . . . . . .231.0 0.3 232.2 136.7
Wetherspoon (J.D. . . . .471.0 -0.4 476.9 371.3
Whitbread . . . . . . . . .2279.0 -3.0 2305.0 1508.0
WilliamHill . . . . . . . . . .314.8 2.8 319.8 183.3
Abcam . . . . . . . . . . . . . .401.3 0.3 431.0 324.5
Advanced Medical . . . . .80.3 -0.3 95.0 64.0
Albemarle & Bond . . . .296.5 7.5 372.0 232.8
Amerisur Resource . . . . .35.3 -1.3 42.0 9.5
Andor Technology . . . .388.4 -4.1 605.0 305.0
Archipelago Resou . . . . .60.0 -1.3 73.8 49.0
ASOS . . . . . . . . . . . . . .2263.0 -86.0 2349.0 1142.0
Aurelian Oil & Ga . . . . . . .8.0 -0.2 26.0 7.3
Avanti Communicat . . .347.0 -15.0 419.0 241.3
Blinkx . . . . . . . . . . . . . . .59.3 -1.3 158.0 33.5
Borders & Souther . . . . .23.5 0.0 131.0 15.3
BowLeven . . . . . . . . . . . .76.5 -0.3 136.0 53.5
Brooks Macdonald . . .1205.0 25.0 1365.0 1022.5
Cluf Gold . . . . . . . . . . . . .87.3 -3.3 104.0 50.0
Daisy Group . . . . . . . . . .92.5 1.0 115.5 86.0
EMIS Group . . . . . . . . . .807.5 12.5 845.0 397.5
Faroe Petroleum . . . . . .150.3 -0.5 177.8 130.0
Gemelds . . . . . . . . . . . .36.3 0.3 42.1 18.9
Gulfsands Petrole . . . . .112.0 -8.0 212.3 82.0
H&T Group . . . . . . . . . .295.0 0.0 357.5 253.0
Hargreaves Servic . . . .694.0 8.0 1264.0 665.0
Healthcare Locums . . . . . .1.9 -0.1 2.0 1.9
IDOX . . . . . . . . . . . . . . . . .36.1 -0.1 40.3 21.4
IGas Energy . . . . . . . . . . .72.8 2.3 75.8 44.5
ImpellamGroup . . . . . .340.0 5.0 362.5 225.0
Iomart Group . . . . . . . . .163.4 -1.6 168.5 99.5
James Halstead . . . . . . .627.5 -2.5 660.3 410.3
London Mining . . . . . . .160.8 -2.5 342.0 129.0
Lupus Capital . . . . . . . . .156.5 0.0 157.8 88.0
M. P. Evans Group . . . . . .531.5 16.3 553.8 390.0
Majestic Wine . . . . . . . .448.1 -6.9 483.0 315.0
May Gurney Integr . . . .124.0 2.5 302.0 99.0
Monitise . . . . . . . . . . . . .38.3 1.5 40.0 25.5
Mulberry Group . . . . . .1259.0 -8.0 2472.0 1250.0
Nanoco Group . . . . . . . . .56.5 0.0 77.5 38.0
Nichols . . . . . . . . . . . . .785.0 11.5 787.0 505.0
Numis Corporation . . . .101.5 0.0 102.6 72.0
Pan African Resou . . . . . .18.3 -0.3 18.7 11.5
Patagonia Gold . . . . . . . .29.5 0.5 58.8 16.5
Personal Group Ho . . . .368.0 0.0 388.5 258.8
Prezzo . . . . . . . . . . . . . . .64.6 -0.1 70.0 53.8
Rockhopper Explor . . . .180.5 2.3 393.5 165.0
RWS Holdings . . . . . . . .543.5 8.5 560.0 410.0
Secure Trust Bank . . . .1225.0 0.0 1240.0 755.0
Sirius Minerals . . . . . . . .22.0 0.3 32.0 9.0
Smart Metering Sy . . . .204.5 0.5 208.9 90.3
Songbird Estates . . . . . .115.0 2.0 122.3 100.0
Thorpe (F.W.) . . . . . . . .1017.5 2.5 1070.0 765.0
Valiant Petroleum . . . .440.0 -1.3 585.0 353.5
Young & Co's Brew . . . .631.0 3.5 692.5 580.0
Petra Diamonds Ltd . . . . . . . . . .118.0 7.6
QinetiQ Group . . . . . . . . . . . . . . .182.9 6.5
Computacenter . . . . . . . . . . . . . .377.4 2.8
Brown (N.) Group . . . . . . . . . . . .274.3 2.6
Diploma . . . . . . . . . . . . . . . . . . .467.9 2.2
SIG . . . . . . . . . . . . . . . . . . . . . . . .104.7 2.1
Barr (A.G.) . . . . . . . . . . . . . . . . .459.9 2.0
Pace . . . . . . . . . . . . . . . . . . . . . . .168.3 1.9
Stobart Group Ltd. . . . . . . . . . . . .116.5 1.8
Shanks Group . . . . . . . . . . . . . . . .90.2 1.8
Bumi . . . . . . . . . . . . . . . . . . . . . .147.6 -24.7
Talvivaara Mining . . . . . . . . . . . .157.6 -4.3
Centamin (DI) . . . . . . . . . . . . . . . .91.8 -4.1
Eurasian Natural R . . . . . . . . . . .330.6 -4.0
Evraz . . . . . . . . . . . . . . . . . . . . . .261.5 -3.8
Imagination Techno . . . . . . . . . .512.5 -3.6
Petropavlovsk . . . . . . . . . . . . . .424.3 -3.5
DunelmGroup . . . . . . . . . . . . . .662.0 -3.4
GKN . . . . . . . . . . . . . . . . . . . . . . .218.9 -3.1
Bodycote . . . . . . . . . . . . . . . . . .388.6 -2.9
Risers FaIIers
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
Tsy 8.000 13 . . . . . . .107.79 -0.02 114.8 107.7
Tsy 4.500 13 . . . . . . .101.90 -0.01 105.7 101.9
Tsy 2.500 13 . . . . . .280.90 -0.02 285.0 280.1
Tsy 5.000 14 . . . . . .109.32 0.01 112.6 109.2
Tsy 4.750 15 . . . . . . . .113.01 0.04 115.4 112.9
Tsy 8.000 15 . . . . . .124.46 0.03 129.0 124.3
Tsy 4.000 16 . . . . . . .113.65 0.05 115.0 111.9
Tsy 2.500 16 . . . . . .344.25 -0.10 348.1 337.1
Tsy 8.750 17 . . . . . . .138.66 0.06 142.0 138.2
Tsy 12.000 17 . . . . . .114.24 0.00 124.8 112.5
Tsy 1.250 17 . . . . . . . .115.26 -0.17 117.1 113.6
Tsy 5.000 18 . . . . . . .122.10 0.08 124.1 118.7
Tsy 4.500 19 . . . . . . .121.69 0.12 123.7 115.9
Tsy 3.750 19 . . . . . . .117.39 0.16 119.2 110.4
Tsy 2.500 20 . . . . . .369.23 -0.11 373.5 349.0
Tsy 4.750 20 . . . . . .124.82 0.16 126.9 117.7
Tsy 8.000 21 . . . . . .153.60 0.17 156.6 145.9
Tsy 1.875 22 . . . . . . .127.54 -0.06 130.3 120.5
Tsy 4.000 22 . . . . . .120.68 0.21 122.8 111.9
Tsy 2.500 24 . . . . . .332.57 -0.16 339.4 307.5
Tsy 5.000 25 . . . . . .132.93 0.24 135.9 122.9
Tsy 4.250 27 . . . . . . .124.76 0.25 128.0 113.5
Tsy 1.250 27 . . . . . . .121.43 -0.32 127.0 113.6
Tsy 6.000 28 . . . . . .149.35 0.25 153.7 137.6
Tsy 4.750 30 . . . . . . .131.71 0.23 135.8 119.8
Tsy 4.125 30 . . . . . . .309.75 -0.39 322.8 289.4
Tsy 4.250 32 . . . . . . .123.74 0.20 127.8 112.1
Tsy 4.250 36 . . . . . .122.25 0.16 127.2 111.1
Tsy 4.750 38 . . . . . . .131.57 0.13 137.2 120.0
Tsy 4.500 42 . . . . . .126.68 0.09 133.6 115.6
% %
AIM 50
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1. Maksymilian
Faktorowicz (1872-1938)
He founded Max
Factor, which started
as a theatrical make
up shop and grew into
a cosmetic empire.
Jo Hansford Colourist extroadinaire
LOCATED in the heart of Mayfair, Jo Hansford has
become regarded as one of the best colourists in
London. Its creators reputation, as the leading
authority in hair colour is widespread; she stands as a
judge on the LOreal colour trophy awards and has
been awarded an MBE for her services to the industry.
Jo has also developed her own colour care range,
created with a careful blend of ingredients and
vitamins, these, like her salon, have become a
favourite among her celebrity clients. The Mayfair
salon is not only known for its dedication to colour but
has a team of leading hairdressers. Beauty treatments
are also available, as is an extensive menu of snacks,
which is created by its in-house chef Tony.
Where: 48 South Audley Street, Mayfair, W1K 2QB
The clients: Yasmin Le Bon, Georgia Jagger and HRH
Duchess of Cornwall
Simon Thrapie The skin specialist
Those wanting to turn back the clocks of time,
without going under the knife have found a solution
in Dr Veronique Simon. Practising cosmetic beauty,
she sculpts peoples faces without the dangers of
surgery. In her elegant Belgravia clinic, Simon
supplies a range of mesotherapy, blood platelet
renovations and provides a bespoke facial named the
Rejuvenator, which leaves skin looking youthful for
up to six months. The natural combination of
ingredients she uses in her treatments are aimed to
enhance the
contours of the face,
creating beautifully
hydrated, plumped
skin. A wide range
of products allows
you to create
younger looking
skin at home.
Where: 9A, West
Halkin Street, SW1X
The clients: Catherine
Deneuve, Charlotte
Rampling and
Isabelle Adjani
Strip Boutique waxing
Strip has become known as one of the top hair
removal specialists in London. Founded by sisters
Maria-Louise Featherstone and Danielle
Featherstone-Price, the salon serves those looking
for a more bespoke, luxurious environment. Set in
uber cool interiors, treatments include waxing, spray
tanning, eyebrow threading and laser hair removal.
Pampering products for skin from high-end brands
make this experience feel like a treat rather than a
chore. Beautiful lingerie labels Stella McCartney,
Cosabella and Elle MacPherson intimates, are on sale,
as are Claudette & Bjorn Borg for men.
Where: Salons are located in Chelsea, Notting Hill,
Soho and the City.
The clients: Rosie Huntingdon-Whitley, Sienna Miller
and Emily Blunt
2. Elizabeth Arden
She founded the
brand, under her
own name, which
international in 1915.
3. Charles Revson
He created the
world famous
company Revlon,
launched in 1932.
7. Rae Morris (b.1970)
As LOreal Paris
makeup director
since 2003, she has
taken them from
strength to strength.
8. Alex Box (b.1960)
Unconventional and
eccentric creations
have seen her work
with Karl Lagerfeld
and Gareth Pugh.
9. Charlotte Tilbury (b.1961)
One of the worlds
leading make-up
artists whose work
graces the top
6. Francois Nars (b.1959)
Nars collaboration
with Madonna in the
90s shot him to
fame. The company
has since grown into
a global success.
5. Dick Smith (b.1922)
From the early 60s to
the mid 80s he was
the pioneer of film
makeup, working on
classics The Godfather
and The Exorcist.
4. Este Lauder (1906-
Created in 1935,
Estee Lauder has
grown to be one of
biggest cosmetic
HERE are not many hair salons that
have a porter greet you at the door,
but then Rossano Ferretti is not your
average salon. In fact it doesnt even
call itself a salon, but adopts the label
hairspa. This is not meant to be your
usual run of the mill trip to the hairdresser.
Number 17 St George Street is the new
home of the eponymous Italian hairdresser.
Rossano endeavours to bring you a new
luxurious lifestyle experience, where you
and your hair are totally taken care of.
There is no shop door, simply look for
the gorgeous male model standing
outside, who welcomes you in. Set in the
beautiful old Faberg building, with
original Faberg chandeliers and wrought
iron staircases, the spa is one of
minimalism, with sparse black and cream
interiors. Upstairs sit three large private
rooms, ideal for Rossanos celebrity
clients, who require discretion, whilst a
private treatment room creates an idyllic
space for rest and relaxation.
Having worked for years on the best
fashion editorials and catwalks, alongside
all the biggest names, he has retired from
that world to set up a line of luxurious
salons, situated in the most glamorous
locations around the world. Rossano, a
stylish and charismatic man, warmly
greets me in Italian: I, embarrassingly,
reply in Spanish.
He tells me of the method, his
revolutionary technique of cutting,
which works with the natural fall of
the hair. He tries to avoid the just cut
look, instead giving the impression that
one has simply been born with good
genes. Rossano is so dedicated to this
technique he has created his own razored
scissors, which create a softer, more
textured look. For Rossano, hairdressing
is not just a job, he says: Hairdressing is
a craft we believe it is time we returned
to creating beauty, with total respect for
the hair. This is conveyed as he
gesticulates wildly, waving the scissors
dangerously close to my hair. And as a
pile of it falls onto my lap, I am scared.
Always daunted by a trip to the
hairdresser, and often accustomed to
quietly crying in the toilets afterwards, I
expect the worse I shouldnt have. With
clients such as Angelina Jolie and Nicole
Kidman, this man knows what hes
doing. The results are beautiful, even if I
say so myself. I spend the rest of the day
happily examining myself in shop
windows and swishing my hair around,
as if starring in a LOreal advert.
Rossano is something special. Not
content with just serving the standard tea
and coffee, clients are offered wine and
cheese, handpicked by Rossano himself
and imported all the way from Italy. I even
saw a woman having a fully cooked meal
while working on one of their many iPads
and watching TV. This wasnt an
inconvenience for the staff, they didnt
demand that she get back in her chair;
they simply worked around her.
Surprisingly, there are not many
mirrors, or even hairdressing stations. In
the 5,500 square feet, sit only 14 chairs.
Rossano tells me profit is not important,
it is making people feel beautiful that
truly matters. Being beautiful, though,
comes at a price: the method cut starts
at 140 and can cost 600 in Rossanos
own hands. This, for many, may seem a
little steep; Rossano would argue that you
cant put a price on feeling good.
Where: 17 St George Street, Mayfair, W1S 1FJ
The clients: Michelle Pfeiffer, Linda Evangelista
and Lady Gaga
Murdock London Male grooming haven
Men are completely catered for at Murdock London.
Located around the capital, its stores lean towards
male clients, unlike other more feminine unisex
salons. These barbers provide grooming treatments
like the luxury wet shave, and supply a wide range of
male products and accessories. Its collections focus
on quality and are produced to the highest
standards. Its products include ranges for hair, skin,
face, shaving and fragrances. Stylish and masculine,
Murdock offers the perfect place for relaxation and
encourages men to develop a better relationship
with their barber, which they see this as vital to the
progression of
male grooming.
Murdock has
become the
primary destination
for the modern-
Where: Stores are
located in Soho,
Shoreditch, Covent
Garden and Mayfair
The clients: Alex
Turner, Oliver Sim
and Mark Gatiss
Italian master hairdresser Rossano Ferretti
The New York fairytale
wow London. But is it
N THE late nineties and early
noughties, New Yorks Balthazar
was the very definition of an it
restaurant. Renowned as one of
the hardest places to get a table in
the city, it was beloved of
fashionistas, business bigwigs and
celebrities. It would be quicker to
name the A-listers who avoided it
than those who have been spotted on
one of its leather banquettes.
There may be more tourists at the
tables these days but, fifteen years
after it opened, Balthazar has become
an institution. And its reputation still
pulls in the big names David and
Victoria Beckham were papped there
a couple of days after I went along to
see what all the fuss is about.
Its this kind of buzz that Richard
Caring the man behind the Ivy, Le
Caprice, J Sheekey, the Soho House
group and the Wentworth golf club
hopes to recreate on this side of the
Atlantic, when a London incarnation
of the restaurant opens in Covent
Garden. Anticipation among food
bloggers and restaurant nerds has
been building since 2010 when Caring
gazumped Jeremy King and Chris
Corbin his arch rivals and fellow
restaurateurs to snap up the prized
old Theatre Museum building on the
corner of Wellington Street and
Russell Street. The opening was origi-
nally slated for this autumn, but has
been pushed back into the new year.
The interior of the original, situated
in Manhattans bustling Soho, is
designed to invoke the faded
grandeur of the archetypal French
bistro. There are neat tiled floors,
rows of bottles above the bar and
fresh lobster, crab and oysters
painstakingly arranged on a bed of
ice. A hundred conversations rever-
berate from the vaulted ceilings as
huge fans churn above your head and
yellowish lights cast the place in a
hazy glow. Apart from the expanse of
mirrors, which appear to be faux-dis-
tressed, it all looks quite convincing
not the gross pastiche of some
American establishments.
But then Balthazar isnt exactly
American. It is the brainchild of Keith
McNally, a 62-year-old expat Londoner
who has had a string of hits with his
eateries in the US and has teamed up
with Caring for this venture.
By anyones estimation, the food in
a sceney place like this is never like-
ly to be the main draw, but the dishes
at Balthazar never disappoint. My
starter of seafood ceviche was a cor-
nucopia of squid and prawns that was
enhanced by peppers and punchy cit-
rus juices. It was entirely satisfying
but didnt scream Fresh! in the way
the best examples can. My main was
a perfectly adequate linguine, with
Italian sausage meat, cockles and rap-
ini. It fitted together nicely, but I was
left a little envious of my dining part-
ners choice of pork belly. The sweet
and sour peaches that accompanied
the tender meat worked beautifully,
though it must be said that of the two
cuts of pork, one was chewier than
the other.
Desert was a dreamy mango cheese-
cake, served at a temperature that
rendered its texture smooth, not
stodgy. The soft base was a continua-
tion of the same, cohesive whole,
rather than the unappealing sepa-
rate layer of biscuit crumbs that one
sometimes encounters. The service
was delightful. Simultaneously
friendly, busy, bright and relaxed:
totally in keeping with the atmos-
phere of a place that welcomes a
huge variety of people through its
Our waitress told us that, these
days, about 50 per cent of the tables
are taken by out-of-towners, but she
was adamant that the rest were still
accounted for by locals, business peo-
ple taking breakfast over Powerpoint
slides and, of course, the celebs.
On the day of my visit I brushed
shoulders outside with a blonde lady
sporting a pair of round-framed sun-
glasses and a pronounced pout. On
the second take it turned out to be
Meg Ryan, a friend of McNallys. You
suspect that she can get a table at
pretty short notice, but I wouldnt
like to bet on how she ranks accord-
ing to the restaurants notorious rat-
ings system. Diners are categorised as
triple-A, double-A or A. Below that,
theres the hoi polloi. Not many
make the top grade, but McNallys fel-
low New York Brit, the legendary
Vogue editor Anna Wintour, is said to
be one of the chosen few.
For now, both the Caring and
McNally camps are tight-lipped
about the London opening. In the
past, McNally has been quoted as
saying that he has an intense dis-
like of chains and sister restau-
rants, and until recently there was
still speculation as to whether it
would be a Balthazar, or take a new
direction entirely. However, a sten-
cilled spray-painted sign on the
London premises confirms that it
will also carry the name of the
Biblical Arabian scholar.
A little snooping reveals more.
Although there has been no official
announcement yet, back in New York
our waitress let slip that they have
had the workmen in to take measure-
ments of the pillars, lights and mir-
rors so the interior of the London
Balthazar resembles that of the origi-
nal as closely as possible.
There is a chance that when
Balthazar comes to London, it will be
little more than a soulless copy of the
real thing. But the success of its
American cousin and the track-
records of the men at the helm sug-
gest it is likely to be worth a visit
especially for those looking for a
famous slice of the Big Apple a little
closer to home.
80 Spring St, New York
Tel: 00 1 212 965 1414
FOOD hhhhi
Cost per person without wine: 45
How to make a
cocktail fit to
raise the dead
O MAKE Donn Beachs infamous
Zombie cocktail youll need
white rum, golden rum, dark
rum, apricot brandy, fresh
pineapple juice, fresh papaya juice,
151-proof rum and grenadine. Good
luck with that. Making some cocktails
is akin to trying to cook like Heston
Blumenthal. Youll be back on the
beer in no time.
But dont fret. You dont need a
walk-in drinks cabinet to make many
of the great cocktails. Take the classic
martini its a delightfully simple
combination of gin or vodka and dry
vermouth (with lemon twist or olive).
A less familiar
would be
The Rusty Nail,
which is simply the
mixture of
Drambuie and
Scotch whisky, on
ice, with an
optional lemon
twist. Its not the
most challenging
cocktail known to man
its antecedents gained
popularity during
prohibition, when
Drambuie was used to
mask the rough
flavours caused
by the ban but
there are worse uses for that bottle of
Drambuie that is gathering dust at the
back of your cupboard.
Drambuie is a useful addition to a
cocktail cabinet. Dave Marsland of
says the tasting notes of Drambuie
are: Very sweet hit on the nose with
instant honey aromas and a light
scent of herbs. A kick on the palate
of spice but soon mellows. Rather
short but warming with a slow
medicinal flavour coming through
near the end. Straight up, this
combination of flavours isnt for
everyone for some too sweet, for
others too medicinal, but in the
right cocktail it will be just about
right for everyone.
To make a cocktail of Zombie
proportions something to wake the
living dead without having to scour
the four corners of the earth, try this
recipe, which Drambuie created to
coincide with the launch of its 50cl
n50cl Drambuie Original
n150cl Pressed apple juice
n4 Cinnamon sticks
n15 Cloves
n20cl Sugar syrup
n25cl Lemon juice
n10 Orange twists
lHeat all the ingredients in a cauldron.
lServe warm in a teacup or handled latte
lGarnish with a fresh cinnamon stick
City A.M.s resident cocktail expert
New Yorks Balthazar is made to look a bit like a traditional French bistro. Its London-based sister is expected to follow its lead
Balthazar became the Big Apples it restaurant. Ahead of its UK launch, we send
Heron Tower, 110 Bishopsgate, EC2N 4AY
FOOD hhiii
Cost per person without wine: 44
hoping to
any good?
truffle would have been nice if the
great big hunks of fruit hadnt
completely overpowered the
subtler tastes.
The roasted essex beetroot was
also something of a curates egg.
The beetroot was nicely cooked, as
was the goat curd, but we found
ourselves sifting through for lumps
of burned honey, which Im still
picking out of my teeth.
Roasted salt beef was a step up
like a posh beef jerky served with a
fried egg on top, which tasted
reassuringly unhealthy. Snaking
tentacles of octopus with chorizo
and capers were tender but, as it
was served with the suction cups
still on (delicious), there was also a
layer of residual slimy skin (not so
delicious). All things considered, Id
have served it sans suckers.
Desserts (torrejas and eton mess)
were so-so but the real finale was a
liquid one. At first glance, the
cocktail list looked like it might
have been considered the height of
sophistication in the 80s: all
Manhattans and dark and stormys.
I ordered a sazerac, which was
served with a blowtorch. Resident
mixologist Richard then whipped
out a block of charred wood and
proceeded to set fire to it, while
casually explaining the bar concept
(new spins on classics). He then
flipped my glass onto the wood,
filling it with smoke, before
pouring in the cognac, rye, amaro
and bitters. Truly excellent.
Over the table, a Manhattan was
served in a bottle wrapped in a
brown paper bag, which made my
guest look a bit like a New York
hobo fallen on particularly good
times, especially with the endless
expanse of the city unfolding
behind her.
And this is the real reason you
come to Duck & Waffle with a
view this good, you can forgive the
slightly lacklustre food.
On the way out, tipsy from the
cocktails (OK, drunk from the
cocktails), we rode the lift up and
down three times like kids at a
themepark. You cant do that in
KEITH MCNALLY is the archetypal
Brought up in the then-squalid
East End of London, he got his break
working as a bell-boy in the Hilton
Hotel, when he was spotted by
a film director who cast
him in a biopic of
Charles Dickens. His
first restaurant meal
was with playwright
Alan Bennett, aged
He emigrated to New
York in 1975, with
hopes of making it
big in the film industry.
Instead perhaps
predictably he found
himself in the leisure
business, waiting tables. But
he quickly rose through the
ranks, eventually opening a
restaurant of his own, Odeon,
with his brother Brian.
He went on to launch and be
involved in a string of hit
restaurants, with the 180-cover
Balthazar, which opened in 1997,
the most famous of them all.
His knack of nurturing the
affections of the rich and
famous has given his
restaurants an almost mythic
reputation. The London
Balthazar, for which he has
gone into business with Richard
Caring, will be his first foray in the
UK. With his reputation, you
shouldnt bet against it.
The Duck & Waffle, which is located on the 40th floor of the Heron Tower
MY HOUSE is what estate agents
would euphemistically call lower
ground, which translates almost
exactly as basement. Outside the
front door, running underneath
the pavement, is a cupboard, which
would, once upon a time, have been
used to store coal. Now, it is filled
with the detritus of my neighbours,
who own the rather grander floors
above mine.
Last week, upon opening my
front door, I was faced with what
appeared to be a particularly ugly
chiwawa, which casually looked me
up and down before sauntering
into the cupboard. Only its tail gave
it away: it wasnt a chiwawa, it was
a rat. A big rat. A dirty, smelly,
disease ridden rat, lurking just feet
away from my front door. I havent
eaten at home since. Every time I
start cooking, I have a vision of the
rat and eat out instead. That rat is
costing me a fortune.
This is, I admit, a bit of an over-
reaction. One of the best places I
ever ate was a street restaurant in
Malaysia, where I was served
steamed buns so light, I had to grab
the table to stop myself floating
away. Gigantic brown rats were
everywhere, scurrying under the
tables and running around the
benches where dim sum were being
steamed. After Id finished, I
noticed the staff were washing
dishes on the street, right in the
middle of the rat super-highway. It
still goes down as one of my
favourite dining experiences.
The point is, venue isnt
everything. At Duck & Waffle,
though, it goes a long way. It is
located on the 40th floor of the
recently opened Heron Tower, from
which you can stare down into the
shadowy dome of the Gherkin.
The glass-fronted lift that takes
you up goes at a hell of a speed.
My eyes are popping, said
someone in the lift, before
clarifying that they meant their
ears, which is just as well.
The only restaurant in London
with views to compete is at the top
of the BT Tower, and thats only
open for special occasions after the
IRA put a bomb in the mens toilets
in the early 1970s.
In any normal restaurant, our
table would have been the quiet
one next to the window. At Duck
& Waffle, though, that window is
a sheer drop of almost 200
metres, which is both spectacular
and slightly terrifying. By the end
of the meal, the window was
filled with greasy hand smears
from our bickering about which
landmark was which (I was
usually right).
I ordered one of the cheaper
bottles of wine on the menu
(which, at 40, wasnt actually all
that cheap), mostly because it was
called Kung Fu Girl Riesling, and
Im a sucker for marketing. I asked
the waiter why it had such a silly
name. He didnt know. He asked
the sommelier, Christophe, who
came and squatted by the table and
told us a story about going to a
wine tasting with the owner of the
vineyard. The conclusion was: there
is no reason at all. Anyway, he
knows his stuff.
The menu which is very
reasonably priced, at 7-ish for
small dishes and 11-ish for bigger
ones is a kind of pan-European
tapas. First to arrive was the pigs
head, mostly because my guest
said it sounded disgusting and I
assured her it was actually very
nice. She was right it was like a
fancy version of the ham you got
as a kid, that came in the shape of
a bears face. Then came bacon
wrapped dates, which I ordered
under duress (they,ll be too sickly
darling, I assure you). They
turned out to be delicious (shows
what I know). The crispy bacon
was just smoky enough to offset
the sticky sweetness of the dates.
Scallops on apple with black
The bacon-
figs were the
highlight of
my meal
Keith McNally: The British restaurateur
who became the apple of New Yorks eye
Edwin Smith to see what the fuss is about
Duck & Waffle doesnt have the greatest
kitchen in the world but the views are ace
6.30pmRevista De La Liga
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Countdown to the Ryder Cup
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European Seniors Tour Golf
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7pmCriminal Minds 8pmBritain
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4amNicks Quest 4.25amHouse
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Challenge 5.10amWildlife SOS
5.35am-6amWildlife SOS
Fill the grid so that each
block adds up to the total
in the box above or to the
left of it.
You can only use the
digits1-9 and you must not
use the same digit twice in
a block. The same digit may
occur more than once in a
row or column, but it must
be in a separate block.
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
Place the numbers from 1 to 9 in each empty cell so that
each row, each column and each 3x3 block contains all the
numbers from 1 to 9 to solve this tricky Sudoku puzzle.
Copyright Puzzle Press Ltd,
1 2 3 4 5
7 8
9 10 11 12
13 14
16 17 18 19
20 21
5 19 15
12 27
23 15
21 12
27 17
8 22
35 9
38 3
4 7 17
1 Long-barrelled,
shoulder gun (6)
6 Cultivating tool (6)
7 Capital of modern
Macedonia (6)
9 Ultimate client for
which a thing is
intended (3,4)
13 Impulses (5)
14 Battery terminal (5)
15 Bronze (3)
16 Cider fruit (5)
19 Country, capital
Santiago (5)
20 Earmark (7)
22 Line on a weather
map (6)
23 Radio antenna (6)
24 Marked by excessive
self-indulgence (6)
1 Brawny (8)
2 Temporary
substitutes (8)
3 At that time (4)
4 Eva ___, German
mistress of Adolf
Hitler (5)
5 Took part in a
ballot (5)
8 Court clown (6)
10 Moves to music (6)
11 Friendly and
outgoing (8)
12 Practise (8)
17 Blue ___, ag
indicating a ship is
ready to sail (5)
18 Founder of the
Bolsheviks (5)
21 Foul or
loathsome (4)



4 9 8 2 7 9
4 1 8 2 5 3 6 7 9
1 2 3 2 1 4 6 3
7 8 6 5 9
8 1 3 1 8 1 7
7 3 6 9 4 1 5 2 8
9 6 8 9 8 5 9
4 1 3 2 5
9 6 7 4 8 7 2 1
6 5 9 2 7 1 8 4 3
4 2 3 2 9 8
The nine-letter word was
New series. A country girl starts work
at a department store in a booming
Victorian city, and falls in love with its
ambitious owner.
The live music extravaganza returns,
with performances by the Beach Boys,
Muse, Public Image Ltd, the xx and
singer-songwriter Natalie Duncan.
As darkness covers Midsomer Stanton
during a total eclipse of the sun,
Jeremy Harper is killed by a blow to
the head with a meteorite.
ENGLANDS Lee Westwood is antici-
pating a hostile American atmos-
phere when Europes Ryder
Cup team this week challenges
for supremacy.
The former world No1 was four
years ago critical of the Louisville
crowd when while he competed for
Europe an individual dressed as a
ghost jumped in front of him and
shouted Boo, and he expects such
animosity to continue.
He was the one that got ejected,
but he was the
one that made
me laugh,
said Westwood
of the ghostly
All of the
abuse that I got
was fairly nasty and
pretty shameful.
Some people dont
know the difference
between supporting
their team and abusing
the opposition team,
which is unfortunate.
The crowd will be right into it.
Chicago is a great sporting town
they get right behind their teams.
I dont see it being any different.
You know you are against the crowd
as well as the US team when you play
in the States, but that is what makes
it more satisfying when you come out
as the winners.
In contrast, team-mate Luke
Donald is confident those in atten-
dance will treat Europe with greater
respect and believes their increased
familiarity with the players to be a
significant factor in
the change he
is predicting.
We will see what
happens, he said.
You never know,
but hopefully
the days of
disrespecting the
away team are out
the window.
I think it has changed. We
are very well-known. I think
that helps.
Monty wants McIlroy kept well away from the Tiger
FORMER Ryder Cup captain Colin
Montgomerie believes it is
important Europes Rory McIlroy
avoids Americas Tiger Woods in the
Ryder Cup singles on Sunday.
Montgomerie was the captain
when Europe won at Celtic Manor
two years ago and despite
understandable public interest in
seeing the tournaments two
greatest talents directly compete,
believes it to be in McIlroys best
interests to avoid Woods.
Citing the 2006 World Match Play
example when Stephane Ames lost
to Woods to underline the challenge
involved in competing with the
illustrious American, the Scot
stressed it was a risk that world No1
McIlroy needs not take.
I would leave Woods well alone,
said Montgomerie. Dont go
anywhere near him, especially in
America and playing now to a
certain degree an awful lot better
than he has been.
I would want Rory to be playing
someone else in the singles if you
dont mind.
Yes, everybody wants this to
happen, but look what happened to
Stephen Ames when he played
Woods. Look at what happened
to Francesco Molinari when he
played Woods.
Another American who
potentially represents a risk to
Europes chances of success is the in-
form Brandt Snedeker, who on
Sunday beat Englands Justin Rose to
the FedEx Cup title when McIlroys
own challenge unravelled.
Snedeker will be making his Ryder
Cup debut but believes this
particular victory leaves him in a
strong position to impress.
I know its going to be a pressure-
packed week, but Im going to use
this as a huge thing to fall back on.
Im playing the best golf of my
career, said Snedeker, who won
$11m (6.79m) because of his victory.
Its a little bit crazy. Im not by
any means a flashy guy. I drive the
same car Ive had since Ive been on
the PGA Tour Ive had it four-and-a-
half and its got 24,000 miles on it.
Of anybody that I know I do not need
$11m. Ive a little boy on the way in a
month. My life is about to change
drastically not because of money,
because Im going to have two kids.
Kelly ruled out for six months
n FOOTBALL: Liverpool defender Martin
Kelly will be unavailable for six months,
and requires surgery, after suffering a
knee injury in Sundays 2-1 defeat to
Manchester United.
Hipkins and Claassens cited
n RUGBY UNION: Baths Hipkiss and
Michael Claassens are to appear at a
Rugby Football Union disciplinary
hearing after both were cited after
Baths 29-22 Premiership defeat to
London Irish. Hipkiss has been charged
with an alleged tip tackle on Jamie
Gibson, and Claassens for kicking lock
Matthew Garvey.
Baldini dismisses Spurs link
n FOOTBALL: Roma general manager
Franco Baldini has dismissed any
interest in being Tottenhams technical
director because he wants to stay put.
Watson awaits Sharapova
n TENNIS: Britains Heather Watson is
to face Maria Sharapova in the Pan
Pacific Open after yesterday beating
world No30 Sabine Lisicki 6-4, 7-6 (7-3).
British amateur scene to develop
n BOXING: The British Amateur Boxing
Association is in discussions with AIBA
to set up a London-based World Series
of Boxing.
Tiger Woods is still one of the worlds best
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THE Football
Association is to
Wembley Stadium
to host the final of
the 2020 European
Championships to
governing body
Uefa. Michel
Platini, the Uefa
president, is
considering a
change in format
which would mean
the tournament is
played across
several European
cities instead of
the traditional one
or two host
chances of hosting
the showpiece are
linked to Turkeys
bid to host the
tournament. The
country has also
bid for the 2020
Olympics so,
should it be
successful in that
particular pursuit,
it will not be
considered for
Euro 2020.
Regardless, the FA
remain keen to
avoid an expensive
bid campaign, like
that for the 2018
World Cup.
Di Matteo sees no danger and predicts that Cole is set to stay
CHELSEA manager Roberto Di
Matteo has admitted to being
very optimistic about the
prospect of defender Ashley Cole
signing a new contract to commit
to the club.
The England left-backs present
deal has only 10 months
remaining and he has been linked
with a transfer to Paris Saint-
Germain under former Chelsea
manager Carlo Ancelotti. From
January he will be in a position to
discuss pre-contract agreements
with other clubs but Di Matteo is
regardless confident he will stay.
Im very optimistic that it will
be dealt with before [January], the
Italian said. Hes one of the best
left-backs in the world.
Hes physically very good, very
strong and has the ability to
recover very quickly from game to
game. He offers us a lot on that
left-hand side.
Hes a fantastic pro, which Im
not sure whether you know.
Hes somebody thats the first
one out in training, one of the
first into the building with John
Terry and trains every day like a
professional. He is reliable,
somebody that you could go to
war with.
Lee Westwood is a Ryder
Cup regular for Europe
Ashley Coles contract is due to expire
Westwood: US
Cup fans want
to spook us
I believe JT has jumped before he could be pushed
OHN Terrys decision to retire
from international duty does,
I suspect, actually have
something to do with his
age. If he was 26, I dont think
hed bother.
Hes had all the trauma from
the summers court case and I
think hes retired because he
believes the FA will find him
guilty in their own disciplinary
hearing, and he doesnt want to
be labelled with that.
Theres still the possibility that
he could get away without any
charges, but knowing the FA and
their past, very few people are
so lucky.
Its certainly quite out of
character for him. Hes not the
sort to just give up on an England
place, but the pressure hes been
under is likely to have had
something to do with it. He
performed very, very well at the
European Championship in the
summer but, either way, theres no
doubt he was at the end of his
England career, though he might
even regret the decision.
The 2014 World Cup is less than
two years away but he obviously
feels as though the FA are going to
rule against him so, if they do so,
how can he be selected again?
One of the decisions England
manager Roy Hodgson appeared to
have made was to select Terry over
Rio Ferdinand. You could argue
that this makes an international
return for him more likely, but I
cant see that being the case.
This could tell us a lot about
Hodgson. If he selects Ferdinand,
then hell lose some credibility. He
said that the reasons Ferdinand
wasnt selected for Euro 2012 were
footballing, so if thats the case
theres no reason why that should
now change.
I honestly dont expect he will.
Ferdinands England career, for
me, is over. I also dont think he
would be particularly keen to play
under Hodgson. It takes a huge
commitment from a player to
return after being dropped;
sometimes you have to accept
youve had a good run in the team
but that its over.
If it were me selecting Terrys
replacement, Id go for Gary
Cahill, his club team-mate, and
retain Joleon Lescott. What more
could you want? Ones a Premier
League winner and the other
helped win last seasons
Champions League. Id have a lot
of confidence in them as a pair.
Beyond those two, Manchester
Uniteds Phil Jones and Chris
Smalling would be the next to
make the squad, but I dont
believe that theyre quite ready.
Trevor Steven is a former England
footballer who played in both the
1986 and 1990 World Cups and the
1988 European Championships. He
now works as a talent scout and
media commentator.
ARSENAL forward Theo Walcott is
adamant that the possibility of
being selected to start as a striker
will be a significant influence
when he makes his decision about
whether or not to stay at the club.
The 23-year-olds contract
expires at the end of the season
and manager Arsene Wenger has
already conceded it will be
difficult to extend his stay if an
agreement had not been made by
April but Walcott, who rejected a
new 75,000 a week, five-year
contract in August, wants to be
regularly selected as a striker if he
is to remain.
Ive been judged, with people
saying its all about money. Its
never been that with me, said
Walcott, who arrived from
Southampton in 2006 for 12.5m.
Playing up front is important.
Its one of the main factors for me.
I signed as a striker. Ive learnt my
trade out on the wing.
Hopefully, Ill get to play up
front in the next few games. Its
frustrating being on the bench,
but its one of those things I have
to deal with.
Its been a slow process. Its not
going to happen any time soon. My
last contract took six months to
do. Its one of those things that is
frustrating for me. Hopefully it
can be sorted.
Despite his history as a regular
in Arsenals starting line up,
Walcott has been left on the bench
while the uncertainty over his
future remains. Should trials for
Gervinho and Olivier Giroud as
the teams central striker
eventually prove fruitless, Walcott
may be given a chance but with
the team in such fine form there
would is presently no reason for
Wenger to experiment.
Winger Walcott
wishes to start
up front to stay
ENGLAND manager Roy Hodgson
has admitted the loss of John Terry to
international retirement is a signifi-
cant disappointment.
The central defender and former
England captain on Sunday
announced the immediate end of his
international career and blamed the
Football Associations disciplinary
hearing into his role in the Anton
Ferdinand race row, which began yes-
terday, for making his position
untenable. The Chelsea captain
had been one of Hodgsons greatest
performers since the managers May
appointment and consequently
concedes that he feels the decision
to retire to be an exceptionally
unfortunate one.
Id like to thank John Terry for his
commitment to the England team
since I became manager, Hodgson
said. I am of course disappointed to
lose a player of Johns international
experience and exceptional ability.
I have enjoyed a good relation-
ship with John during my time as
England manager and I reluctantly
accept his decision.
I can also confirm that he had the
courtesy to call me prior to the
announcement of his retirement
from the England team. Id like to
wish John well for the future.
Another of Terrys former man-
agers, Avram Grant, who replaced
Jose Mourinho as Chelseas head
coach for the 2007-2008 season, has
meanwhile questioned why the FA
If [the FA] think JT is racist they
need to do something but I think
nobody thinks he is a guy like this.
I think the message was clear and
I dont think they need to charge
him. For the FA, the more important
thing is the message that it will not
have racism in sport.
Hodgson: Terrys retirement is
a big blow to my England plans
felt it necessary to investigate Terry
after he was in the summer cleared of
racial abuse in a case at Westminster
Magistrates Court.
He said: Nobody thinks John Terry
is a racist so the FA need to leave it.
John likes to fight and hes very
passionate about the national team
so I was surprised [at his retirement].
But hes not a child, he knows what
hes doing.
One thing I must say is that hes
not a racist. Hes a good man. He
respects everybody, hes good with
people and I was very surprised that
people thought bad things of him.
Englands manager
laments defenders
international exit
Chelsea captain John Terry (left) has been a key player for Roy Hodgson (right) since his appointment as England manager in May
Rio Ferdinand
Partnered Terry in central
defence for the majority of
the Chelsea mans England
career but was overlooked for
Euro 2012. There may have been a
reluctance to select the two together amid
the race row surrounding Rios younger
brother, Anton, but he is proven at the top.
Gary Cahill
Plays alongside Terry at
Chelsea and was an England
regular until injury on the eve
of Euro 2012. A better footballer
than he is sometimes given credit for, Cahill
could become the greatest benefactor of
his team-mates retirement by being his
long-term replacement.
Phil Jones
A defender full of promise
who plays for Manchester
United. Joness talent is not in
question but his positional sense
is. There remains no reason why he cannot
develop this but Terry was a calm, reliable
influence, which Jones has certainly not yet
proved to be.
Steven Caulker
Not yet a regular starter for
Tottenham but another classy,
promising defender. Looked
consistently comfortable for
Swansea City last season and if his progress
continues he could continue the
international career that begun with Team
GB at London 2012.
Chris Smalling
The classiest of Englands
developing defenders.
Smalling featured for the team
under previous manager Fabio
Capello and has the potential to become a
regular starter for years to come. Would be
preferable for him to consistently start for
Manchester United first, however.
Europes Lee Westwood looks
ahead to the Ryder Cup
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