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trade deficit for goods seen in the US.

However some analysts poured cold
water on the figures which exclude
services trade a sector more preva-
lent in mature economies like the US
and UK. With services included, the
US does more trade than China.
And the method of computing the
figures is flawed, said Dan Ikenson at
the Cato Institute, a Washington think
tank. The back of your Apple device
reads Designed by Apple in California;
Assembled in China that says all you
need to know, Ikenson said.
The iPod costs $150 to produce, but
though only $5 of that cost is Chinese
inputs, all of it accrues to Chinese
exports basically a large fraction of
Chinas export value reflects foreign-
made intermediate goods and labour.
Ikenson also cautioned that we
should not necessarily conclude that
China was stronger economically
because it did more trade in fact it
might be more dependent on foreign
countries and less self-sufficient.
The title of worlds top goods-trad-
ing nation is a bit misleading,
Ikenson added. At the same time, we
should celebrate Chinas growing
CHINA has eclipsed the US to become
the worlds top trader in goods for the
first time, official figures from the two
countries revealed.
Chinese imports and exports togeth-
er totalled $3.87 trillion (2.45 trillion)
in 2012, according to figures from the
countrys ministry of commerce, just
ahead of the USs $3.82 trillion in
goods traded surpassing the worlds
biggest economy for the first time.
And economists said the gap
between the worlds two preeminent
economies would only widen over
coming years, as Chinas tight trade
links with fast-growing Asian and
African countries paid off.
Though the figures are distorted by
the different date of the Lunar New
Year, and though a crossing point is
essentially arbitrary, it is clear that
China is roaring past the US to take up
the baton as the key force in driving
world trade, Daiwas Chris Scicluna
told City A.M. They benefit from their
location, close to other rapidly expand-
ing Asian economies, and we can only
assume their trade will continue to
outpace mature economies in Europe
and North America. FREE
But Scicluna said that China overtak-
ing the US now was ironic, given that
it was currently rebalancing its econo-
my away from relying on net trade
and towards domestic demand.
Nicholas Lardy, senior fellow at the
Peterson Institute for International
Economics, also seized on this point.
It is remarkable that an economy
only a fraction of the size of the US
economy has a larger trading volume,
Lardy told Bloomberg.
Especially remarkable was that the
boom in trade had come from Chinese
imports which have grown faster
than exports since 2007 not exports
and an undervalued currency.
Slower export growth did not stop
China posting a trade surplus in goods
of $231.1bn over 2012, its largest in
four years, in contrast to the $727.9bn
FTSE 100 6,262.93 +35.51 DOW 13,992.97 +48.92 NASDAQ3,193.87 +28.74 /$ 1.58 +0.01 / 1.18 +0.03 /$ 1.34 unc
THE FORUM: Page 17


Certified Distribution
from 31/12/12 to 27/01/13 is 127,008
Care reforms will drag thousands more into inheritance tax
INHERITANCE tax allowances will
be held back from keeping pace
with inflation for three more years
to fund changes to elderly care, the
government will announce today.
Thousands more people will be
forced to pay the 40 per cent rate
because the amount that can be
bequeathed tax-free will be pegged
at 325,000 for individuals and
650,000 for couples between 2015
and 2018. With the average London
home now costing 365,000, many
middle-class families will find
themselves paying the tax on the
death of their relatives.
The decision comes despite
chancellor George Osbornes
commitment to raise the tax-free
allowance by one per cent in
2015/16. Before the general election
Osborne pledged to increase the
allowance to 1m, saying he wanted
to help people whose only crime in
the eyes of the taxman is that
instead of spending their savings
on themselves they want to pass
something on to their families.
The extra funds raised by the
decision will be used to put a
75,000 cap on the amount the
elderly pay for social care from
2017. Yesterday health secretary
Jeremy Hunt told the BBCs
Andrew Marr Show that this would
end the scandal at the moment
where, every year, 30 to 40,000
people are having to sell their
houses to pay for care costs.
However this is still more than
the 35,000 cap suggested by the
Dilnot review into long-term care
costs. Both caps exclude the cost of
food and accommodation. The
government is also expected to
guarantee no one will have to sell
their home to fund care during
their lifetime, with fees deferred
until after death. There will also be
an increase in the means testing
threshold, so anyone with assets of
less than 123,000 will get free care.
Dec2012 Jun2012 Dec2011 Jun2011
Total tradein12monthstodate, $trillion
Thousands of revellers gathered in Chinatown yesterday afternoon for a parade to celebrate the start of the year of the snake
Recession-busting job opportunities, every Monday
See pages 19-22
Follow me on Twitter: @allisterheath
City vacancies up as firms
hire compliance experts
CITY job vacancies bounced back in
January as financial services firms
renewed hiring in the New Year,
recruitment data shows today.
But weak market conditions and
intense pressure from regulators is
still hitting jobs, with last months
recruitment numbers still well down
on those seen a year ago.
And those looking for work are
often not those finance firms want,
with a skills shortage in compliance
driving wages up again among those
who did get new jobs last month.
Morgan McKinleys London
employment monitor showed 2,331
new jobs came onto the market in
January, a 76 per cent jump from
Decembers 1,323. But the seasonal
rise was not enough to offset the
wider downward trend in City
employment last months figure is
down 18 per cent on the 2,835 new
jobs in January 2012.
At the same time the number of
professionals entering the market
for new jobs rose 74 per cent from
2,915 in December to 5,065 in
January. Again that is down 26 per
cent on the 6,827 in January 2012.
Recruiter Morgan McKinley
believes the figures show the City is
on track to shed 13,000 jobs this year,
as forecast by the Centre for
Economics and Business Research.
Brussels fights US data privacy push
Europes most senior justice official,
Viviane Reding, is adamant she will fight
US attempts to water down a proposed
EU data protection and privacy law that
would force global technology companies
to obey European standards across the
Smaller banks say rules hit lending
Homeowners and small businesses are
being denied a wide choice of lending
providers because of safety rules that are
hampering the ability of small UK banks
to expand lending, say senior banking
executives. Small banks have rounded on
UK, EU and Basel III regulations they say
have imposed a glass ceiling.
Radical rescue proposed for Cyprus
A radical new option for the financial
rescue of Cyprus would force losses on
uninsured depositors in Cypriot banks, as
well as investors in the countrys
sovereign bonds, according to a
confidential memorandum prepared
ahead of todays meeting of Eurozone
finance ministers.
Democrats plan to close tax loophole
It may be time for payback in Washington
as politicians look to close the loophole
that has allowed Mitt Romney and other
private equity financiers to pay a tax rate
of less than 15 per cent.
Move from Brixton to Wye
The former deputy chief executive of
Brixton is back in the property market
with a new business. Steve Owen has
joined forces with Christopher Jonas and
Steve Lee to create Wye Valley Partners.
Consumers would pay for Big Six crash
Householders could be forced to provide
up to 4bn to meet the cost of any of the
six leading energy suppliers going out of
business, under revised plans drawn up by
the Government to avoid market chaos.
Diageo invests in gin after sales surge
Drinks giant Diageo is pouring fresh
investment into its gin brands, Gordons
and Tanqueray, to take advantage of a
surprise surge in sales of the spirit in hard-
hit economies such as Spain and the UK.
Identity Thief tops US box office
Identity Thief with Melissa McCarthy and
Jason Bateman took the top slot at the US
weekend box office, taking $36.6m
according to estimates from
Australias ASX keeps clearing role
Australias biggest bourse operator ASX will
retain its monopoly on the clearing and
settlement of cash equities for at least two
years after the government deferred a
decision on allowing competitors into the
BUSINESSES have just eight weeks
to prepare for the biggest overhaul
to the pay-as-you-earn (PAYE) tax
system in almost 70 years, HM
Revenue and Customs has warned
The tax authority said it will be
writing to almost 1.5m employers
from this week to remind them of
the new real-time information (RTI)
system replacing year-end tax
returns from 6 April.
Under the new system,
businesses will have to tell the
revenue about payments made to
employees at the time they are
made in real-time rather than at
the end of the tax year.
The scheme is designed to cut
down on over- and under-payments
of income tax and reduce the
number of errors in the PAYE when
workers change jobs.
Lin Homer, chief executive of
HMRC, said: Business costs will be
cut by 300m a year, employees are
taxed more accurately and fraud
and error in the tax credit system
will be reduced by hundreds of
millions of pounds every year.
RTI will also eventually support
the governments universal credit
programme that will replace
existing benefits including
jobseekers allowance and income
support replaced with one single
benefit paid monthly.
JAN 13
DEC 12
NOV 12
OCT 12
SEP 12
AUG 12
JUL 12
JUN 12
MAY 12
APR 12
MAR 12
FEB 12
JAN 12
0% 25% 20% 15% 10% 5%
JAN 13 NOV 12 SEP 12 JUL 12 MAY 12 MAR 12 JAN 12
JAN 13 NOV 12 SEP 12 JUL 12 MAY 12 MAR 12 JAN 12
Source: Morgan McKinley
Firms urged to
prepare for
real-time PAYE
To contact the newsdesk email
NCE again, I find myself
disagreeing with the
government. The coalition is
about to introduce a 75,000
cap on the cost of social care for the
elderly, in an attempt, or so it claims,
to ensure that people no longer have
to sell their homes to pay for help
when they become very old.
It is unfortunately true that pen-
sioners who run out of liquid assets
currently often have to sell their prop-
erties to pay for care, often a crip-
plingly expensive necessity. That is
extremely sad but one purpose of
owning property is to accumulate cap-
ital to make sure one is prepared for
this kind of eventuality. Children
whose inheritance will be gobbled up
by care costs stand to lose out; but tax-
payers should not be in the business
of subsidising relatively wealthy peo-
ple. The status quo is unacceptable,
Stealth hike in inheritance tax not the answer to care crisis
with far too many heart-breaking and
tragic cases but the answer must lie
in developing novel, workable insur-
ance products, not in the nationalisa-
tion of yet another major liability.
The 1bn cost of the new cap this
sum is bound to rise massively will
be funded by a stealth hike in inheri-
tance tax. Everybody with sufficient
assets to qualify will pay far more in
tax, regardless of whether they end
up benefiting from state-financed
care. This will be imposed by freezing
the inheritance tax-free threshold of
325,000 until 2019, even though
inflation on the retail price index is
currently 3.1 per cent. By 2019, the
threshold would probably have
increased to 420,000 without the
freeze; so this is a pretty massive raid
and will hit many elderly folk and
their children. In many cases, this will
be very unfair: a family that cares for
its own elderly relatives will be hit by
the tax, even if they were able to avoid
using institutionalised care.
This is a major and humiliating u-
turn for George Osborne, who origi-
nally made his name as a political
strategist when he pledged to hike the
inheritance tax threshold to 1m, a
move which prevented Gordon Brown
from calling an election which he
might have won. The abandonment
of this popular promise is a timely
reminder of the Liberal Democrats
proceeds of selling the deceaseds
property. The coalitions claim that
this policy is intended to stop people
having to sell their homes doesnt
bear up to scrutiny.
A better solution would be to devel-
op more insurance based-products
and to encourage as many people as
possible to take them out. The launch
of the new pension auto-enrolment
system provides an opportunity to
transform the culture: more people
need to put money aside for their old
age, and not just for their more enjoy-
able retirement years. We should be
engaging in a proper debate, centred
around the need for greater personal
responsibility and long-term plan-
ning, not reflexively nationalising
costs and hiking tax.
vast influence on tax policy.
It is important to remember that
the average house in London is pre-
dicted to be worth 500,000 by 2018,
according to the Centre for
Economics and Business Research.
The government says that it doesnt
want people to be forced to sell their
homes to pay for care but it clearly
doesnt mind that hundreds of thou-
sands more grieving children will
have to sell their family homes to pay
for inheritance tax. Apparently, its
OK to lose ones home to the taxman
but not OK to lose it to care costs.
Even that is conceding too much to
the government: for those who
havent bought insurance, and who
have assets but cannot afford the
75,000 chunk of care costs before the
cap kicks in, the cost will be deferred,
which means that it will be rolled up
until death, and then paid out of the
From the job seekers perspective
the rise in professionals entering the
hiring market is partly attributed to
some renewed confidence but also a
lack of patience; those who anticipate
small or zero bonuses try to get ahead
of the game and make the move before
peers who might be awaiting bonus
payments later in the quarter, said
Hakan Enver from Morgan McKinley.
In addition, redundancy announce-
ments seek to have peaked staff from
teams laid off in the fourth quarter are
now coming into the market hoping
for a new opportunity.
For those who did get a job, their
salary increased by an average of 24
per cent compared with their previous
role, illustrating the increasing short-
age of suitably skilled workers.
Adhering to regulatory change con-
tinues to be where the hiring market is
busiest; compliance hiring is focused
on anti-money laundering and preven-
tion of financial crime following high
profile cases linked to organised crime
and terrorism, explained Enver.
CAREERS: Page 19

Five die in Thomson Majesty drill
Five crew members died in an
emergency drill on a cruise ship in the
Canary Islands yesterday, police and
the cruise ship operator said. Cables
snapped on a lifeboat and it dropped
20 metres (65 feet) to the ocean and
fell upside down, killing the five and
injuring three others aboard, during
the mock rescue exercise on the
Thomson Majesty, operated by British
travel group TUI Travel. Thomson
Cruises is looking into the accident.
Royal Dutch Shell amends rules
Royal Dutch Shell has unilaterally
amended the rules of one of the
important components of the North
Sea Brent market, which sets the basis
of billions of dollars of oil trade
worldwide in an effort to support
trading liquidity. Shell said it would
alter its SUKO 90 terms which govern
how forward BFOE (Brent, Forties,
Oseberg and Ekofisk) cargoes are
traded. Shell posted the amendment
to terms and conditions on its website.
Apple developing smart watch
Apple is developing a smart watch
that would run on its iOS platform,
according to various reports over the
weekend. A blog on the New York
Times claimed that Apple is working on
a prototype of a curved glass
wristwatch, and though few details
exist as to which functions of a
smartphone the watch might include,
former employee Bruce Tognazzini has
claimed it could link to other devices
via bluetooth. Apple did not comment
on the reports.
Find your next step at
THE DRINKS industry has squared
up to the government over a price
floor for alcohol, after a study
commissioned by a trade body
suggested that figures used by the
government in setting the policy are
slightly squiffy.
The average amount of alcohol
consumed per person in the UK has
fallen by around 12.6 per cent
between 2006 and 2010, more than
double the drop that was forecast if
a 50p per unit price floor had been
introduced, according to research
by the Centre for Economics and
Business Research (CEBR),
commissioned by the Wine and
Spirits Trade Association (WSTA).
Yet the rate of alcohol-related
hospital admissions has risen by a
third between 2007 and 2010,
casting doubt on ratios used by
Sheffield University in its 2006
research for the government, CEBR
The WSTA has claimed that
minimum pricing will not put a
stop to binge drinking while
penalising what it describes as
reasonable drinkers.
A consultation into a 45p
minimum unit price for England
and Wales finished last week.
A similar move in Scotland has
become snarled in legal challenges.
Research says
basis for booze
floor is wobbly
A GROUP of MPs will today call for the
government to lift restrictions on a
low-cost pension scheme, arguing it
will create extra work for businesses
and prevent employees from max-
imising the return on their savings.
Dame Anne Begg MP said a failure
to lift the current limit on contribu-
tions to the National Employment
Savings Trust (Nest) could mean
some employees are prevented from
having access to the best value pen-
sion scheme available.
Nest is the not-for-profit organisa-
tion set up by the government to
meet the needs of small businesses
and low earners many of whom are
poorly served by private providers as
the majority of workers are required
to be automatically enrolled into pen-
sion schemes over the next four years.
However todays report from the
work and pensions select committee
criticises the decision to limit annual
Nest contributions at 4,400 per
employee for competition reasons. It
Pension rules
hurt firms and
savers, MPs say
says many businesses will have to
carry the burden of operating two par-
allel schemes for both high and low
earners, adding complexity for busi-
nesses and workers.
There are also restrictions on with-
drawals from Nest, affecting the abili-
ty of employees to combine their
various pension pots into a more prof-
itable whole.
It is important that the government
makes the decision to remove the con-
straints on Nest as soon as possible, to
give small and medium sized employ-
ers the certainty they need before
auto-enrolment begins for them in
2014, the committee says.
Pensions campaigner Ros Altmann
welcomed the findings: Taxpayers
have funded the initial set-up of Nest
but the idea is that it should become
profitable enough to repay the taxpay-
er loans. If Nest cannot take in enough
assets, the cost of state aid to Nest is
likely to be at least 379m.
The government is due to decide
whether to lift the restrictions later in
the spring.
BOTH sides in the boardroom
dispute at Indonesian miner
Bumi have separately lodged
formal complaints with criminal
authorities in London over
alleged computer hacking
Bumis billionaire chairman
Samin Tan is understood to have
passed a report from a security
review team into alleged hacking
to the City of London Police,
Serious Fraud Office and the
Serious Organised Crime Agency.
This follows a separate
Bumi chairman calls in City cops
over alleged hacking incident
complaint filed last year with the
Metropolitan Police by the firm
investigating an alleged hacking
of the emails of Nat Rothschild,
who is battling to regain his
stake in the London listed outfit.
Both sides declined to comment.
This comes ahead of a crunch
shareholder meeting on 21
February to decide the firms
fate. Rothschild received a boost
on Friday after investor relations
outfit Pirc backed his
nomination of Brock Gill for
chief executive to replace
current chief executive Nick von
Chairman of Bumi Samin Tan (left) and Bumi co-founder Nat Rothschild (right)
Romanian firms face lawsuit
over 100 per cent horse lasagne
THE SCANDINAVIAN arm of frozen
food giant Findus yesterday said it
would sue one of its suppliers after
one of its beef lasagnes was found to
contain 100 per cent horse meat,
unleashing a wave of lawsuits over
the growing scandal.
Environment secretary Owen
Paterson said the substitution of
horse meat for beef was either
gross incompetence or an
international criminal conspiracy
and warned further cases of
mislabelling were likely to emerge.
But he denied that a ban on all
meat imports from the continent
would be necessary, saying such a
move was not allowed within the
rules of the European Common
Meanwhile the Food Standards
Agency has ordered manufacturers
to carry out emergency DNA tests on
all processed beef products, with the
first results due out on Friday. The
organisation last conducted checks
for horse meat in 2003.
Findus was forced to withdraw its
frozen beef lasagne products from
sale last week following revelations
about their provenance. The meals
were produced by Comigel in
Luxembourg using meat from
French firm Spanghero. Spanghero
used a network of agents in Cyprus
and the Netherlands to source the
raw meat from an abattoir in
Romania. All involved parties are
now considering legal action.
Leading French supermarkets have
withdrawn all Findus and Comigel
products from sale, despite no proof
that other food lines are affected.
AN INDEPENDENT Scotland would
have to reapply to be a member of
major world organisations such as
the European Union and the United
Nations, according to government
legal advice published today.
Meanwhile a rival report from
the Scottish National Party (SNP),
also issued today, says the country
should keep sterling as its currency
post-independence, even though
Holyrood could have little control
over key monetary decisions.
The UK governments unusual
decision to release the 57-page
guidance it commissioned on the
Independent Scotland could
lose membership of EU and UN
legal risks associated with next
years referendum has angered
Scottish nationalists.
According to the reports
authors, Scotland is likely to be
considered a new state under
international law and would not
automatically be a signatory to
thousands of existing international
treaties. Nor will it automatically
be a member of NATO, Interpol, the
International Monetary Fund and
the World Trade Organisation,
raising concerns about the
countrys standing.
Last week the SNP set out plans
to hold independence day in March
2016 if it wins the referendum.
BARCLAYS will tomorrow announce it
is shutting down its controversial tax
avoidance units as part of a major
drive to clean up its operations and its
image after a series of scandals.
Antony Jenkins became chief execu-
tive after Bob Diamond stood down in
the wake of the Libor scandal, and
tomorrow unveils his plans to reform
the bank. A key part of his trans-
form programme is to close down
the Structured Capital Markets (SCM)
business, despite its profitability
illustrating how serious the bank is
about changing the way it operates.
There are different components to
the tax services that we have provided
clients historically. Many of those are
not controversial delivering value as
part of real client transactions and
we will continue to provide such serv-
ices, Jenkins will say tomorrow.
However, there are some areas that
relied on sophisticated and complex
structures, where transactions were
Barclays tax
avoidance unit
to close down
carried out with the primary objective
of accessing the tax benefits.
Although this was legal, going for-
ward such activity is incompatible
with our purpose, and incompatible
with the new tax principles which we
are publishing today. We will not
engage in it again.
Jenkins wants bonuses and promo-
tions to depend much more on good
behaviour than they did in the past.
And senior staff will have to wait
longer for their bonuses, giving incen-
tives to behave well and to work for the
good of the bank as a whole.
Antony Jenkins will tomorrow unveil his plans to reform Barclays culture and repair its image
Barclays PLC
8Feb 4Feb 5Feb 6Feb 7Feb
302 p
ARCLAYS share price has been
on the rise since Antony
Jenkins was appointed as chief
executive late last August,
recovering from the impact of the
Libor scandal and Bob Diamonds
resignation in July 2012, and is now
almost 30 per cent up on its price at
this time last year.
Optimists will be hoping that this
weeks long-awaited public
presentation by Jenkins of his
strategy review, and the results that
accompany it, will be enough to keep
the stocks momentum upward.
However, that wont be an easy
line to walk. Jenkins has to balance
the need to rehabilitate Barclays in
the public eye with the need to
maintain its revenues. Closing its
Structured Capital Markets division
wont reduce tax avoidance others
will step into the gap but it does
mean Barclays forgoing the profit it
generates. Similarly, Barclays relies
on its investment bank for a
significant share of its profits and
cant afford to talk it down too far.
Underperforming parts need to go
but Jenkins must be careful not to
pander too much to public opinion
at the expense of shareholder value.
Auditors in line for major new
power to challenge bank chiefs
AUDITORS in banks should have
greater power to challenge bosses
about excessive risks in any part
of the business, as well as about
threats to the institutions
reputation and stability under
proposed guidelines published
In a drive to shake up the
profession and prevent a repeat of
the failings in the run up to the
financial crisis, the Chartered
Institute of Internal Auditors
(CIIA) has launched a consultation
on the new code of conduct.
The oversight staff will get new
powers and responsibilities to
assess the risk appetite of the firm,
from the establishment of
parameters by the board through
to the controls used to monitor
the risks being taken and the
adherence of the firm to them.
Those powers should extend
right through to monitoring the
culture of bank employees and
how they are paid, the CIIA said.
The financial watchdogs
welcomed the proposals.
The expectations of internal
audit functions within financial
services firms have hitherto been
set too low, said Andrew Bailey,
who will head the new Prudential
Regulation Authority.
The regulatory authorities
expect firms to have robust
internal audit functions capable of
providing genuine challenge to
management and driving
improved governance, risk
management and internal
controls. I hope that this guidance
will help internal audit functions
position themselves to achieve
Jenkins must walk the fine line
between change and stability
INSTITUTIONAL investors are
looking to bypass private equity
firms in future and make more
direct investments, amid growing
concerns over the transparency of
information from private equity
A heavyweight survey by M&A
data provider Mergermarket and
advisory firm Duff & Phelps shows
over two-thirds of limited partners
are looking to increasingly bypass
private equity companies and go it
alone in search of better returns and
lower fees. The figures will alarm
large private equity houses
struggling to raise money from
investors for future buyout funds.
The survey, which interviewed 100
investors from North America and
Western Europe, found 70 per cent
of respondents also thought
transparency was a key concern,
with a further 63 per cent saying
timeliness of reporting was a
common problem.
The illiquidity of private equity
investments make them notoriously
hard to value, leading to
shortcomings in delivering values to
Fund of funds, pension funds and
sovereign wealth investors were all
polled in the survey. Most were
optimistic about the industry, but 33
per cent said they had no plans to
increase current allocations.
Private equity
houses losing
favour in deals
THE owner of some of the UKs best-
known private hospital sites is to
hold crunch talks with lenders over a
2bn debt pile, opening the door for
a creditor takeover of the sites.
General Healthcare Group, which
owns 69 hospital sites including 9
Harley Street and Fitzroy Square hos-
pital in London, is racing against
time to clinch a deal with its lenders
before the debt matures in October.
Lazard and PwC have been appoint-
ed advisers on talks as the lenders,
led by Barclays, Mizuho and German
bank Pfandbriefbank, seek to thrash
out a deal with GHG.
Options on the table are understood
to include an extension of the loan,
fresh equity injection or a full blown
seizure of the properties by the banks.
The debt problem dates back to the
era of easy credit in 2006, when GHG
was snapped up by a group led by
South African group Netcare and pri-
vate equity firm Apax.
GHG was separated out into a prop-
erty company which took on
1.65bn of gross debt and another
420m liability and a separate serv-
Hospital owner
in talks to avert
2bn debt crisis
ices company, which offers healthcare
under the BMI Healthcare banner,
and is relatively debt free.
The hospital buildings have been
used as collateral against the loan,
meaning any default by GHG would
see the hospitals taken by the lenders.
BMI Healthcare has a 29-year lease on
the buildings, which means if owner-
ship did change hands, its services
offered would be unaffected, a
spokesman said.
GHG owns 69 hospital sites across the UK
PRET A MANGER, the purveyor of sandwiches and coffee for Londons hungry
workforce, has ruled out plans for an immediate stock market float in favour of a
refinancing deal. Bridgepoint, the private equity shop with a 70 per cent stake in the
firm, will use the refinancing to fund future expansion and refund loan notes.
EASYJET shareholder Sir Stelios
Haji-Ioannou has published a fresh
list of complaints about the budget
airline, but investor bodies the
Association of British Insurers (ABI)
and ISS have given the firms
proposals the thumbs up.
Sir Stelios yesterday repeated his
call for EasyJet chairman Sir Mike
Rake to resign before his planned
departure date in the summer.
The EasyGroup founder, whose
family owns 37 per cent of EasyJets
shares, said he will vote against Sir
Mikes re-election and the firms
remuneration report at a share-
EasyJet bats away latest Stelios
issues with investors blessing
BY MARION DAKERS holder meeting on 21 February.
I have no favourites in who the
next chairman would be, said Sir
Stelios. I just want someone who
hates Airbus and hates taking large
gambles with our money.
Sir Stelios has long been critical
of Sir Mike and the groups ties
with Airbus, grievances that have
flared up as the firm considers its
next plane order.
EasyJet responded yesterday by
pointing out the blue top rating
given to its AGM proposals by the
ABI meaning that one of the UKs
biggest investor representatives has
no concerns. Proxy advisory service
ISS has also given its backing.
Sir Stelios Haji-Ioannou wants chairman Sir Mike Rake out
GOOGLE executive chairman Eric
Schmidt is to sell 42 per cent of his
stake in the internet giant over the
next year, raising around $2.5bn
The disclosure, made in a filing to
the US Securities and Exchange
Commission, will see the former
chief executives control over the
company loosened as he sells 3.2m
shares. The stock closed at a record
high of $785.37 on Friday.
Although Schmidt only held two
per cent of Googles shares at the
end of 2012, he had eight per
cent of the voting rights
thanks to a special class
of stock issued to early
backers. This sale will
leave him with around
five per cent of the voting
rights but the company
insists he remains com-
mitted to the busi-
This is a rou-
tine diversifica-
tion of assets,
the company
Google chair
to sell 1.6bn
stake in firm
said in a statement. This is a routine
diversification of assets and Eric
remains completely committed to
The sale of his shares will be stag-
gered over a 12-month period as part
of an arms-length trading plan
designed to reduce the market
impact. Last year he sold 2.4m shares
in a similar scheme.
Schmidt joined the search engine
business in 2001 and helped turn
into one of the worlds largest com-
panies before handing control back
to Google co-founder Larry Page in
April 2011.
Since then he has taken a leading
role in negotiations with the US gov-
ernment, in addition to writing a
book on the future of the internet.
Last month he made a high-profile
visit to North Korea with former New
Mexico Governor Bill Richardson.
Schmidt was ranked 138 on the
Forbes list of global billionaires
with a net worth of $6.9bn in
March 2012.
Eric Schmidt was CEO of
Novell before joining Google
QATARS sovereign wealth fund has
installed two directors on the
board of Heathrow Airport
Holdings, filings at Companies
House show.
The emirate, which agreed to buy
a 20 per cent stake in the airport
owner in the summer, has
nominated Qatar Airways chief
executive Akbar Al Baker and Ali
Bouzarif as directors.
Al Baker has lobbied for more
runways at Heathrow. The airport
confirmed the new board members
yesterday but did not comment.
New directors
for Heathrow
US Airways and American Airlines
parent AMR are nearing an $11bn
(6.7bn) merger that would create
the worlds largest airline and could
announce a deal within a week, after
resolving key differences on
valuation and management
structure, sources said yesterday.
The deal would come more than
14 months after AMR filed for
bankruptcy in November 2011, and
would mark the last combination of
legacy US carriers, following the
Delta-Northwest and United-
Continental mergers.
US air groups
near merger
Youll do horizon (man v woman)
40 38 21 0 30
Youll Do
Youll Do
home the prized gong for Law Firm
of the Year.
However the biggest cheer of the
night erupted when City A.M. award-
winner Sebastian Coe took to the
stage with his Locog colleague Terry
Miller, who won Lawyer of the Year
for her work on the 2012 Olympic
Elsewhere, Telefnica UK was
named best In-House Team,
Linklaters took the award for cor-
porate team and Clifford Chance
won the finance team prize, while
dispute resolution team of the
year went to The Capitalists
personal favourite for best
name in show Skadden
Arps Meagher & Flom.
L to R: Freshfields partner Tim
Jones, Sebastian Coe and
Locogs Terry Miller
The memorial service for Peter
Meinertzhagen (pictured), who
was one of the Citys best known
corporate financiers, was held on Friday.
David Knox, chief executive of Oriel
Securities, where Peter had served as a
director, told The Capitalist: His
memorial service was a
fitting tribute to a true
City legend. There were
over 1000 attendees
and people were literally
queuing round the block
to get in. The service itself
was very uplifting but
with a fabulously
joyful and playful
element which was
reflective of Peter
Research released by language
consultancy The Writer suggests
that banks should use more
informative language in order to please
the public. The consultancy says that
personality is crucial in attracting
customers unless you are a bank.
Bad news for financial spinners,
although not for Barclays. Apparently
the recent statement made by the
banks chief executive Antony
Jenkins that the firms core values are
respect, integrity, service, excellence
and stewardship was exactly the
type of personality-free linguistics that
The Writer says will have customers
eating out of the palm of his hand.
IT is probably not a book to give on
the 14 February, unless the object
of your affection finds economics
particularly sexy. But with Saint
Valentines day fast approaching,
the timing for the publication of
Will Nicholsons memoir could not
be more appropriate.
A Story of Love and Market
Forces was written by the
Freshfields trainee who admits I
know economics very well, but not
The hardback, while by no means
as instructive as Neil Strausss
legendary pickup book The Game,
does offer dating theory (with handy
graphs, see above) for readers in
search of advice: You need to play
hard to get: If you restrict your
supply, youll increase your price.
Luckily, there is a happy ending, as
Nicholson tells The Capitalist he is
no longer single. Thatll be the
efficient market hypothesis at work,
The Romantic Economist: A Story of Love and Market Forces, was written by Will Nicholson
Trainee solicitor gets romantic
as love and economics collide
Got A Story? Email
THE great and the good of the legal
profession gathered at Mayfairs
Grosvenor House for the 2013 Legal
Business Awards.
Almost 1,000 lawyers donned black
tie for the 16th annual incarnation
of the ceremony, which saw
American firm Cleary Gottlieb take
Olympic lawyer
takes a gold at
legal awards
THE construction sector faces
another difficult year in 2013, an
industry body said this morning,
after yet another batch of poor
figures came out on Friday.
Some 84 per cent of
manufacturers of heavy side
construction inputs such as
cement and steel along with 79
per cent of those putting out light
side products including fittings,
heating, doors and windows said
demand from builders would
constrain their production in the
coming year.
The figures, contained in the
Construction Products Associations
(CPA) latest state of trade survey, add
to the gloom coming from the
Office for National Statistics official
data. ONS figures showed
construction output to be down 9.3
per cent in the fourth quarter,
compared to a year earlier.
After two disappointing quarters,
sales of heavy side products fell once
again due to difficult market
conditions in the construction
industry, said CPA economist Milja
Keijonen. However, sales of light
side products rose as the difficult
domestic market was offset by
strong exports to fast growing Asian
Keijonen said the survey data
suggested this trend of divergence
would go on.
Builders face
more gloom
during 2013
THE UK private sector surged back
into growth in the first month of
2013, according to the results of a
business survey out this morning.
The Lloyds TSB purchasing man-
agers index (PMI) climbed to 52 dur-
ing January, the bank said, up from
49.9 in December and therefore
through the crucial 50 barrier, into
territory indicating growth.
This new data adds to other
research suggesting the UK will avoid
slipping into its third recession in
just five years.
The improvement came from
growth in all but one English region,
and expansion in three out of four of
the UKs constituent countries
despite some predictions that ugly
weather would keep a lid on activity.
The capitals private sector posted
one of the stronger PMIs, at 52.3
growing slightly faster than the UK
as a whole, though slightly slower
than the South East, East Midlands,
and Yorkshire, who recorded the
fastest growth, with a PMI of 53.1.
The fastest growing country was
Private sector
regains growth
in the new year
Wales, with its 23-month high index
level of 54.1, up from 52, ahead of
Scotland on 52.3 and England on
51.6 up from 50.1. Northern Ireland
was the sole area of contraction but
even this shrinkage could be taken
positively, as the decline came at the
slowest pace in 14 months.
Despite fears that private sector
output at the start of the year would
be disrupted by the heavy snowfall in
January, the latest survey revealed an
upturn in business activity across
most of the English regions, said
Lloyds Banking Group managing
director David Oldfield.
Oldfield highlighted the upbeat
sub-index for employment, which
suggested the private sector was still
boosting jobs, as a particularly opti-
mistic element of the data.
However separate figures from
accountancy firm BDO, also out this
morning, painted a drastically differ-
ent picture of the UK economy. BDOs
forward-looking optimism index
crashed from 90.3 in December to
88.9 last month bringing it to its
lowest ebb since the survey began 21
years ago.
up from 50.3
up from 49.9
Numbers above
indicate growth
Numbers below
Darkcolours show
faster growth in
business activity
PMI Business
Activity Index
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HOUSE prices in the southeast of the
UK will soar in coming years, accord-
ing to a forecast out yesterday, with
the average house in the capital fetch-
ing half a million pounds.
Currently the average London
house is worth 383,000, according
to the Centre for Economics and
Business Research (CEBR), but a tight
housing market will boost this to
500,000 by 2020, the think tank
And this rapid growth will be
shared with much of the surround-
ing region, the CEBR predicts, with
house prices across the South East
shooting up by
24.8 per cent
between now
and 2018 com-
pared to growth
of just 2.3 per
cent in the
worst perform-
ing UK region,
the North East.
Prices in the
East will race
Average house
price in London
to hit 500,000
BY BEN SOUTHWOOD ahead even faster than the South East,
the CEBR thinks, surging 25.7 per
cent by 2018, but Northern Ireland
prices will grow just six per cent,
dragged down by the struggling hous-
ing market in its southern neighbour.
The CEBR put the capitals solid
forecast down to strong flows of
skilled immigration, a predominance
of competitive service sector compa-
nies and links with booming emerg-
ing economies. But CEBR economist
Daniel Solomon warned that even
though growth would be robust, it
would not match up to the pre-slump
House price rises will be driven by
Londons comparatively rosy econom-
ic growth prospects, buoyed
by IT, business and profes-
sional services, Solomon
said. Nevertheless, house
price growth in London will
remain notably slower than
in the boom years before the
financial crisis.
INFLATION will come in above
target for the 38th straight month
when data for January is released
tomorrow, analysts have
The consumer price index (CPI)
will show inflation of 2.6 to 2.7 per
cent, City economists said,
marking yet another month above
the Bank of Englands two per cent
target, with aggressive discounting
in non-food retail balanced out by
rising restaurant and transport
insurance prices.
Analysts predict another missed
inflation target in January data
But yet another missed inflation
target is unlikely to spur the Bank
into tighter monetary policy
higher rates or rolled back
quantitative easing (QE), Philip
Shaw at Investec hinted.
Shaw predicted that
Wednesdays quarterly Inflation
Report would forecast inflation
crashing through the three per
cent barrier at some point in the
year. If this came after July, it could
require incoming governor Mark
Carney to write his first
explanatory letter to chancellor
George Osborne, Shaw pointed out.
Londons housing market has
outpaced the rest of the UK
INCE Riccardo Zacconis online
games company,,
first started developing games
for Facebook in mid-2011, the
business has seen growth explode,
overtaking US gaming giant Zynga
on the Facebook gaming charts, and
being highlighted as one of the
hottest companies on Londons
burgeoning technology scene.
But is no flash in the
pan. August marks the companys
10th anniversary, making it a year
older than Facebook and four years
older than its rival Zynga. started out in 2003
building simple puzzle and skill
games for its own website, on
which people would compete for
cash prizes. It quickly attracted
interest, receiving funding from
venture capitalists at Apax Partners
and Index
Ventures in 2005,
the same year
Zacconi says the
business turned
From there,
continued to build
churning out new
games on its
website as well as
for then-dominant websites such as
Yahoo and MSN. But by 2009,
Zacconi could see his games were
losing traffic to Facebook. In 2011,
he moved his most popular game,
Bubble Saga, onto the social
network, and then another, Bubble
Witch Saga.
The games were a hit, and by
October 2011, was one of
the 10 most popular developers on
Facebook. More games followed, and
in January this year the latest,
Candy Crush Saga, overtook Zyngas
FarmVille to become Facebooks
most-played title. The games are free
but charge players small amounts
for power-ups or extra lives, a
lucrative business model.
Now Zacconi says he is working
seven days a week as he travels from
King.coms Soho headquarters to
San Francisco, Hamburg, Barcelona,
Bucharest, Stockholm and Malmo,
Londons new king
of social gaming is
always on the move
but if the work is tiring him out, he
doesnt show it.
When a company grows very fast
as we have, its fun, Zacconi says.
Ive been doing this for 10 years and
the company has not always been
growing, and now its exploding and
every day Im learning new things. has around 400 staff,
and plans to have around 700 by the
end of the year. This expansion is
needed because the secret to his
games success, Zacconi says, is that has invested in developing
them for not only the web, but for
smartphones and tablets too.
I think theres a big advantage in
having content which is ubiquitous,
because it means you can have the
same game everywhere: You can
start on your tablet, you can
continue on your iPhone, you can
continue on your
PC, and in the
future you will be
able to continue on
your TV from
where you left off,
Zacconi says.
This multi-device
explains King.coms
throughout 2012, as
its major rival has
stalled. Since Zyngas initial public
offering 14 months ago, revenues
have flatlined as gamers abandon its
web-focused titles for mobile games,
and the companys stock price has
fallen by two-thirds.
However, Zacconi says Zyngas
poor market reception has not put
him off floating
Although, in his words, we have
not yet kickstarted the process, the
company has been exploring the
option, with New Yorks Nasdaq
listing the likely destination, and
Zacconi says he has been doing
some simple things which any
company which grows needs to do,
like reviewing compensation and
structures and the board structure.
On the other hand, there is no
pressure for a flotation. Right now
I think we are very focused on
execution, Zacconi says. But its
going to be a very interesting year.
Riccardo Zacconi is exploring a Nasdaq listing, despite rival Zyngas poor reception
1967, in Rome
Economics, in Rome
1991-92, strategy consulting, LEK
partnership, Germany
1993-1998, strategy consulting, Boston
Consulting Group, Germany
1999-2000, managing director at Spray
Network internat portal (sold to Lycos),
2001-2, entrepreneur in residence,
Benchmark Capital
2002 VP marketing and sales, uDate
online dating (sold to IAC)
2003 to now:, co-founder and
chief executive
When a company
grows very fast as
we have, its fun...
every day Im
learning new things

After a decade, King.coms co-founder Riccardo Zacconi is

helping his firm grow into an empire, says James Titcomb
THE UKs first 4G mobile service is
broadly living up to its claims about
faster mobile internet, though its geo-
graphical coverage remains patchy,
according to research out today.
Mobile phone network EE launched
its 4G connections in October amid
much fanfare about its download
speeds, which the firm said would be
up to five times faster than 3G.
Tests by RootMetrics, released today,
found that 4G customers could use
mobile internet at speeds more than
four times faster than those using 3G.
Its data shows that EE has delivered
speeds in line with its pledge to offer
data transfers at between eight and 12
megabits per second (Mbps).
Testers at nearly 100,000 sites in
three cities recorded average speeds of
9.4Mbps in Liverpool, 11.8Mbps in
Cardiff, and 7.9Mbps in Sheffield.
Speeds on 4G only were even faster,
with Cardiff tests achieving an aver-
age of 16.2Mbs.
RootMetrics testers were able to
connect to the 4G network 71.3 per
cent of the time in Cardiff, though
this fell to 48.5 per cent in Sheffield
and even lower outside the city.
The connection figures were similar
EE is keeping
up with its 4G
speed pledge
to those seen when 4G launched in
the US, RootMetrics said.
When it comes to availability of EE
4G in city centres, the picture is posi-
tive if not universally excellent, said
RootMetrics chief executive Bill Moore.
We see the percentage of 4G improv-
ing in line with other launches, but
there are some notable variations like
people in Cardiff getting a better serv-
ice than those in Sheffield, despite
paying the same.
EE was not available for comment.
The firm plans to roll out 4G in 27
more towns and cities this year.
BYRON, the upmarket hamburger
chain dotted around Londons
square mile, is being touted to
would-be buyers with a price tag of
between 100m and 120m, after
the chain boomed to healthy
adjusted profits over the last six
The outfit, which is part of a
stable of restaurants including
PizzaExpress, Ask Italian and
Soho institution Kettners
owned by Gondola Holdings, has
been given a price tag of about
10 times its adjusted earnings
by the corporate advisers
selling the business.
The 25-restaurant business is
Byron Hamburgers under the
hammer for upwards of 100m
understood to currently rake in
between 10m and 12m in
adjusted earnings before interest,
tax, depreciation and earnings. A
sales process kicked off in
November after private equity
house Cinven, which owns Gondola
Holdings, received interest in a
sale. Accounts filed at
Companies House
show revenues at
the chain surged 63
per cent to 28.6m
in the 12 months
ending July 2012,
boosting pre-tax
profits to 2.2m.
Montagu irons out GHD sale
The private equity owner of hair styling
brand GHD has sold the firm to Lion
Capital for an undisclosed sum. Montagu
Private Equity, which bought into GHDs
parent firm as part of a management
buyout for 160m in 2007, said the
company generated 150m in revenues
and 32m in profit last year. Lion said it
will continue to work closely with
management to develop new products
and ramp up sales through new channels.
Retail gloom takes toll on Radley
Radley, the upmarket leather goods
maker, said it swung to a loss last year as a
result of incredibly challenging high
street conditions, which saw retailers
slash prices to lure shoppers. Company
accounts show that reorganisation costs of
1.7m dragged the group to a 737,000
loss in the year to the end of April, down
from a 3.1m profit the previous year.
Turnover fell from 45m to 41.2m.
Rocco Forte sales rise by a quarter
Sir Rocco Fortes hotel empire saw sales
rise last year but remained in the red for a
fourth consecutive year. Rocco Forte
Hotels, which owns 13 luxury resorts
around the world, reported a 25 per cent
rise in turnover to 185m in the year to 30
April 2012 after buying a 50 per cent
interest in a joint venture with Bank of
Scotland. Loss on ordinary activities
before tax narrowed to 9.3m from 9.6
the previous year, company filings show.
Byron Hamburgers
is up for sale
Kevin Bacon is EEs well-connected ad man
Cushman and Wakefield
Donald Reid will join the real
estate services company as a
head of project management
and building surveying. Reid
has over 17 years experience as
a qualified building surveyor,
and was most recently head of
project management at Davis
The law firm has announced three new hires. Michelle
Harris, a former corporate partner at Kingsley Napley,
will join the firm working in sports, media and
entertainment. Alex Stewart, former head of legal at
Arqiva Broadcast and Media, will be a consultant in the
technology, media and telecommunications
department (TMT). Former Virgin Media senior legal
counsel Paula Jackson will also be joining the TMT team.
The property consultancy has announced the
appointment of Zoe Innes as partner for residential
lettings. Innes has 17 years experience working in
residential property, including six years as an associate
partner at Strutt and Parker.
Tax Advisory Partnership
Tameron McDougall has joined the tax advisory firm to
lead one of its tax client teams. McDougall was
previously at Arthur Anderson in Melbourne. She then
relocated to the UK, worked in tax compliance at Frank
Heath, and was most recently at PwC.
The accountancy and professional services firm has
appointed three new partners. Charles Bradbrook
previously led the creative talent team at Deloitte.
Richard Gilbert, who will head up its audit practice,
joins from a Top 20 firm. Gavin Lenthall will lead its
financial services team.
Jones Day
The law firm has announced the appointment of Juan
Ferre to its business restructuring and reorganisation
practice. Ferre has over 15 years experience working in
restructuring and insolvency.
Rothschild Group
Thomas Mirow has joined the financial advisory group
as senior adviser. Mirow was most recently a
president of the European Bank for Reconstruction
and Development.
WHOS SWITCHING JOBS Edited by Annabel Palmer
+44 (0)20 7092 0053
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In association with
CONOMISTS have warned that
markets should be braced for bad
news this week as the Bank of
England releases its quarterly
update on the UKs financial outlook.
The upcoming Inflation Report is
likely to project that inflation will still
be clearly above the two per cent tar-
get two years ahead, and perhaps not
even back to the target three years
ahead, said Citi analyst Michael
If so, this will be the first Inflation
Report since early-2008 to forecast
above-target inflation two years
The report is due out on Thursday
and follows Wednesdays release of
official inflation figures. The consen-
sus forecast is for inflation in January
to have stabilised at 2.7 per cent.
However many economists predict it
will rise above three per cent later in
2013. Less gloomy news is expected to
come from this weeks Rics housing
survey, which is likely to show house
prices are rising gradually. Meanwhile
official retail figures are also expected
to be upbeat.
The corporate week starts today with
full-year figures from Fidessa, interim
results from Monitise and a trading
update from Essar Energy.
The Eurogroup finance ministers
are also set to meet.
Tomorrow will bring a slew of eco-
nomic data, such as the retail price
index and consumer price index.
The headline corporate news will
come from banking giant Barclays. It
is set to report its full-year results as
well as its strategy review in which
chief executive Antony Jenkins will
outline his plans for running the
The market will be paying close
attention to his plans, especially what
intentions he has for its biggest earn-
ing sector, the investment banking
Jenkins has said he is keen to change
the image of the bank in the wake of
the Libor-rigging scandal.
Full-year results are also expected
tomorrow from Dragon Oil and
Heavitree Brewery while Dunelm
Group will give interim figures.
On Wednesday Telecity, Reckitt
Benckiser, Anglo Pacific, African
Barrick Gold and Tullow Oil are all
set to update the market with year-end
figures, while Town Centre Securities
is set to deliver interim results.
Thursday, which is Valentines Day, is
unlikely to be all hearts and flowers,
with RBS already labelling the
Eurozones expected quarterly GDP
figures a Valentines Day massacre.
However Rolls-Royce and Shire are
both expected to deliver rosier news
with their full-year reports. Rio Tinto
and SVG Capital will also give year-end
Miner Anglo American will finish
the week with year-end figures, while
Darty is set to give a trading update.
Market braced
for bad news in
Inflation Report
8 Feb 4 Feb 5 Feb 6 Feb 7 Feb
8 Feb
US bull market
to face further
tests in March
HE US stock market is no
stranger to strong
performances in January, only
to see the lofty gains early in
the year transition into months of
grinding action that goes nowhere.
Thats what happened in 2011 and
2012, and some analysts think 2013
could follow the same routine.
Markets are higher this year in the
face of Washingtons debates over fis-
cal policy, but a looming deadline on
spending reductions could test the
This is almost a carbon copy of last
year, said Alan Lancz, president of
Alan B Lancz & Associates in Toledo,
The mentality is ride the wave as
far as you can and try not to be the
last one off, Lancz said.
Major indexes recently crossed psy-
chologically important milestones
1,500 for the S&P 500 and 14,000 for
the Dow industrials. The S&P is at its
highest level in five years, while the
Nasdaq finished on Friday at its high-
est close since November 2000, the
tail end of the Internet bubble.
The current levels are more signifi-
cant than Wall Streets usual fixation
on round numbers. This is only the
second time the Dow has reached
14,000, and the third time the S&P
has hit 1,500.
That could leave the market churn-
ing as investors test whether there is
enough support to reach new highs,
or if a pullback is needed. The sharp
gains and overall bullishness on Wall
Street leave stocks vulnerable to sud-
den shocks, such as a flare-up of the
financial crisis in the Eurozone.
One significant hurdle is the auto-
matic federal spending cuts that will
go into effect in March. So far, the
equity market has largely ignored the
back-and-forth related to delaying the
so-called sequester that would trigger
$85bn (53.8bn) in automatic spend-
ing cuts.
Morgan Stanley rates the travel group overweight and has raised its target price
from 60p to 100p after last weeks update. The broker has greater confidence that
the firm can turn itself around, based on better than expected cost savings and
some signs of growth in the Nordic and German markets. The success of rival Tui
Travel also points to the possibilities open to Thomas Cook, Morgan Stanley adds.
Thomas Cook Group PLC
4Feb 5Feb 6Feb 7Feb 8Feb
p 95
8 Feb
Canaccord Genuity rates the insurer buy and has hiked its target from 205p to
225p in light of strong results last Thursday. The broker expects Beazley to
outperform its peers this year, thanks to its large US business and a marine franchise
that has avoided losses from the Costa Concordia sinking and most of the Hurricane
Sandy damage.
Beazley PLC
4Feb 5Feb 6Feb 7Feb 8Feb
p 210
8 Feb
Investec has cut the tobacco firm from buy to hold and lowered its target from
25.80 to 24.50. With Imperial already boasting some of the best margins in the
industry, the broker is sceptical about its plan to trim costs. Investec has decided to
lower its rating after a weak first quarter update, which was barely better than last
years gloomy figures.
Imperial Tobacco Group PLC
4Feb 5Feb 6Feb 7Feb 8Feb
p 2,380
8 Feb
To appear in Best of the Brokers, email your research to
NE of the most striking
phrases in David Camerons
recent speech on Europe was
his recognition that a new
global race of nations is
underway today. Adapting to a fast-
changing global economic order is
critical to the continued prosperity of
the UK. Over the past decade, a huge
amount of focus has quite rightly
been placed on strengthening the
UKs ties with the Bric nations, as we
strive to realign our patterns of trade
to reflect the reality of these fast-
growing markets.
But no less important have been
ongoing efforts to foster closer two-
way partnerships across the Gulf. The
government views this region as a
priority, and it is important that UK
INCE the 2008 crash, weve
heard steady criticism of the
role of physicists in finance. The
terms quants, derivatives and
models have all taken on nasty
connotations. But if you think about
mathematical modelling in the right
way, this criticism is wrongheaded.
One of the most prominent critiques
is an argument from psychology. It sug-
gests that ideas from physics are
doomed to fail in finance because they
treat markets as if theyre composed of
quarks or pulleys. Physics is fine for
space travel but, as Newton said, it can-
not predict the madness of men. This
draws on ideas from behavioural eco-
nomics, which tries to understand mar-
kets by drawing on psychology. As
markets are about the foibles of
humans, they cannot be reduced to for-
There is nothing wrong with behav-
ioural economics. But a criticism of
mathematical modelling based on it
trades on a misunderstanding. Using
physics as a springboard for new ideas
in finance does not involve describing
people as if they were quarks. Some
By Nassim Talebs
logic, you should never
build a skyscraper since
a meteor might hit it
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.

Black swans are difficult to predict
but we still need maths in finance
physicists made progress by drawing on
statistics to identify new ways of think-
ing about risk. Others used their expert-
ise at extracting information from
noisy sources to identify patterns that
could be useful for trading. Still others
combined observations about markets
with theories learned in physics to
come up with expressions that describe
how observable features of markets
(like stock prices) relate to opaque fea-
tures (like oncoming crashes).
None of this involves assuming that
investors are a bunch of quarks. A care-
ful study of human behaviour, in fact, is
not inconsistent with using mathemat-
ical models to study markets. You
should expect psychology and human
behaviour to be symbiotic with mathe-
matical approaches to economics.
A second criticism has found its
biggest champion in Nassim Taleb. His
influential book The Black Swan argues
that markets are far too wild to be
tamed by physicists. A black swan is an
event that is so unprecedented it is
impossible to predict. Black swans,
Taleb argues, are what matter, yet they
are precisely what our best mathemati-
cal models are unable to anticipate.
This is a problem for financial model-
ling, Taleb says. He argues that physics
lives in a world called Mediocristan,
whereas finance lives in Extremistan.
The difference is that randomness in
Mediocristan is well-behaved and can
be described by normal distributions. In
Extremistan, normal distributions are
misleading. Applying ideas from
physics to finance is a fools errand.
On one level, Taleb is right. Well can
never predict everything that can hap-
pen. But recognising this is part of
thinking like a physicist. It amounts to
resisting complacency in model-build-
ing. But it shouldnt stop us from figur-
ing out how to predict as many kinds of
would-be black swans as possible.
Taleb believes that black swans show
that mathematical modelling is funda-
mentally unreliable. It seems to me you
can argue that a model is flawed, albeit
usually in ways that a responsible
builder would recognise from the start.
But arguing that model-building as a
whole is doomed is different.
The process of building models is the
basic methodology underlying all sci-
ence and engineering. Its the best basic
tool we have for understanding the
world. We use models to build bridges
and to design airplanes. What does it
mean to say that, since the methodolo-
gy behind these models cannot be used
to predict everything that could ever
happen, it should be abandoned? If
Taleb is right, you should never drive
over a bridge. At any moment an
unprecedented earthquake could occur
that the bridge builders models didnt
account for and the bridge could col-
lapse. You should never build a sky-
scraper because it might be hit by a
meteor. Dont fly in an aeroplane, lest a
black swan collide with its engines.
Taleb would have it that finance is dif-
ferent to engineering that its extreme
events are more unpredictable or more
dangerous. But its hard to see why.
Catastrophic events usually come with-
out warning. This is true in all walks of
life. And yet, it doesnt follow that we
shouldnt do our best to understand
what risks we can.
Its important to distinguish between
the impossible and the merely very dif-
ficult. Theres little doubt that master-
ing financial risk is extremely difficult
much more difficult than solving
problems in physics. But the process is
the best way we have for addressing our
biggest challenges.
James Owen Weatherall is assistant profes-
sor of logic and philosophy of science at
University of California, Irvine, and author of
The Physics of Finance (Short Books).
firms follow this lead to fully explore
the opportunities available in the
face of intense competition from our
Relationships are key to developing
business in this global race. That is
why building on the work of previous
City delegations is an important
element of what we do. A delegation
will travel to the region to Kuwait,
the UAE, Egypt, Bahrain and Qatar
later this week, following on from a
recent visit to Oman.
There is a huge amount of
goodwill towards the UK due to our
historic ties. This is reflected in the
fact that the Gulf accounted for over
17bn of total exports in 2011,
making it the UKs seventh largest
export market, and a bigger one than
India, Russia and Mexico combined.
But there is scope to broaden and
deepen this relationship. A case in
point is the huge range of
opportunities available in regional
infrastructure investment.
Currently, 15 of UK Trade and
Investments 56 High Value
Opportunities are in the Gulf. Qatar
is forecasting up to $200bn (126.6bn)
of infrastructure expenditure in
preparation for the 2022 World Cup,
Kuwaits National Development Plan
contains $108bn for infrastructure
development and Oman has a $20bn
programme of infrastructure
development, encompassing roads,
rail, ports and airports.
In order to win a share of this
business, however, we need to
demonstrate why UK firms should be
seen as the regions commercial
partner of choice. The key
differentiator for the UK is our hard-
won reputation for delivering major
high-quality projects on time and on
budget as demonstrated
memorably by the 2012 Olympics.
The City has vast experience in
mobilising the capital and providing
the services required throughout a
projects lifecycle from design to
In addition to infrastructure, there
is a growing demand across the Gulf
for knowledge-intensive services in
which the UK excels. These include
education, research and healthcare,
as economies diversify away from
From the Citys perspective, we
believe that sharing skills and
experiences will ensure this
longstanding relationship continues
to go from strength to strength. But
in this global race, we cannot afford
to underestimate the hunger of our
Roger Gifford is lord mayor of the City of
Dont let the rise of the Brics mask burgeoning opportunities in the Gulf
In association with
ONE WAY FARE INCLUDES ALL TAXES, IN-FLIGHT SNACKS AND 12kg HAND LUGGAGE. Correct as of 8 Feb. Non-refundable, non-changeable. Subject to conditions and availability.
Consensual leader
[RE: Mark Carney will be more of a
reformer than a revolutionary, Friday]
This article is thoughtful, but I disagree
with its second point. The Monetary Policy
Committees current inflation target is
already quite flexible; it is unclear what
would be achieved by formalising
flexibility. Mark Carneys testimony was
more candid than the British public have
become used to from central bankers. This
indicates the importance that he places on
open communication in contrast to Sir
Mervyn King. More importantly, Carney
was dismissive of nominal-GDP targeting,
saying that he remains to be convinced.
We can expect a more open style of
leadership when he takes office.
Derrick Wilkinson
The pernicious tax
[RE: Give London back its stamp duty to
reinvest in growth, Wednesday]
It is encouraging to read one of Londons
deputy mayors putting forward a creative
approach in order to address the UKs
housing crisis. Using the proceeds of
stamp duty raised in London to build 1m
new homes is a good idea. The question
is now why cant the government follow
suit and get on board? Stamp duty is a
pernicious tax that penalises house sales
and purchases. As the Budget
approaches, it is now the right time to re-
channel some of this money, and start
getting new homes built as soon as
Julian Briant, head of residential consultan-
cy, Cluttons
HUKA Umunna, the shadow
business secretary, suggested
in last weeks City A.M. that
Labour is the natural party of
entrepreneurship. This is little
more than a cynical attempt at
gesture politics.
Like Umunnas father, my parents
came to Britain with very little and
set up their own businesses. The
small shops they owned created jobs
in their communities and provided
stability for my family. But Labours
economic legacy has made it harder
for the next generation to start and
sustain a business, as our parents
were once able to do.
Britains business community is
fully aware that Umunna stood for a
party that went into the last election
committed to taking more tax from
small and medium-sized enterprises
(SMEs). Small firms shuddered at the
prospect of increases to the small
profits rate of corporation tax and
national insurance contributions.
Labour planned new taxes on phone
Labours obsession with red tape
and EU laws also established a pun-
ishing regulatory regime. During its
time in office, Britain fell from fourth
to eighty-ninth in the World
Economic Forums burden of gov-
ernment regulation ranking. This
legacy is costing SMEs almost 17bn a
year, according to the Forum of
Private Business, and acts as a barrier
to private sector growth, job creation
and inward investment. Just one EU
directive Labour signed up to, the
agency workers directive, is costing
firms 1.5bn a year equivalent to
the governments budget to invest in
700,000 apprentices.
But whats more shocking is that
behind Umunnas warm words lies a
dangerous set of Labour policies,
which would cause more harm to
firms wishing to expand and to indi-
viduals wanting to start their own
Could escalating tensions between Japan and
China bring about serious economic damage?
In the near term, China and Japan are unlikely to negotiate a
return to stability. A continued push by Beijing to weaken Japans
administrative control over the disputed islands sustains the risk
of an accident; but military confrontation is unlikely given Japans
alliance with the US. However, risks surrounding the Japan/China
relationship remain high particularly on the economic side.
China sees real domestic and geopolitical benefits from pursuing
such an approach. Beijing has in recent years been willing to use
its economic leverage to pressure Japan, and it is better situated
to navigate the economic risks surrounding a slowdown in
bilateral trade and investment flows. For now, downside risks to
Japanese consumer brands in China in particular will remain high
until diplomatic entreaties lead to a real change in at-sea
Nicholas Consonery is an Asia analyst at Eurasia Group.
Nicholas Consonery
Paul Chesson
Historically, spats between Japan and China have been short-
lived. The two nations need each other. China needs Japans
technology and inward investment; Japan needs Chinas growing
market for consumer and capital goods, and services. As long as
Japan continues to make things that the Chinese want, they will
buy them. One example is Japanese camera sales, which were
initially affected by the dispute. But Canon and Nikon have a large
market share in digital cameras, and the Chinese dont have many
other choices. If you produce goods that people want, and you
make them competitively, then you have little to fear from politics
as long as markets are open. It is unclear how this dispute will be
resolved. But within weeks of the consumer boycotts of Japanese
goods, Chinese consumers once again returned to Japanese
brands, suggesting the impact will be short-lived.
Paul Chesson is head of Japanese equities at Invesco Perpetual.
companies. Labours blanket opposi-
tion to the deficit reduction plan
risks higher interest rates on lending,
while its desire to spend more money
inevitably means businesses paying
higher taxes. Umunna also led
Labours opposition to the Beecroft
reforms to employment law, which
would give firms more flexibility to
recruit, retain and rebalance their
workforces while keeping costs down.
Around 60 per cent of private sector
jobs come from SMEs and, despite the
economic downturn, the number of
enterprise births has increased by
more than 10 per cent in the last two
years, and by 20 per cent in London.
The government should reward
these companies by cutting tax and
regulation, and ministers deserve
credit for the steps they have already
taken. The small profits rate has been
reduced to 20 per cent, and regulato-
ry reforms have saved firms 3bn. But
more action is needed to encourage
and stimulate entrepreneurship. A
rise in threshold of the small profits
rate from 300,000 to 500,000, a sim-
plification of the tax code, reforms to
air passenger duty and the abolition
of regulations from Whitehall, town
halls and Brussels are among the
many liberalising policies that should
be vigorously pursued. The govern-
ment must defend the interests of
SMEs, back entrepreneurs and
remove the many damaging econom-
ic barriers the private sector identi-
Priti Patel is Conservative MP for
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RLY 69
Fly from London City Airport visit
The system worked. People lobbied their
MPs, parliament demanded a lower EU
budget, and ministers delivered.
How many expensive years has it taken to
for us achieve this small cut in the EUs
A decent showing by David Cameron on the
EU budget. Perhaps he should quit his day
job and become a European commissioner.
A 27-hour summit, with 27 EU member
countries. Is this an argument against further
EU enlargement?
LETTERSto the editor
E: | Comment: | @cityamforum
Cynical Labour has
no claim to being
a party of business
N AN uncertain hiring market, the
insurance industry is still looking
for talent. Research by PwC
projects that hiring in general
insurance will increase by 7 per cent
in the first quarter of 2013, while life
insurance will see new hires rise by a
huge 76 per cent. A career in the
industry also offers the potential for
an attractive work-life balance, and to
work in a system that can quickly
reward perseverance and merit.
For an outsider however, insurance
can seem a guarded community
strongly driven by relationships and
standing apart from the rest of the
City. Indeed, breaking in from a non-
insurance background is not easy, and
hiring managers are mindful that
newcomers may not have the required
technical skills, or may be unable to
adapt to a new way of working. But for
some, a career move is possible and
potentially very rewarding.
Medium and larger insurers, espe-
cially those in the FTSE 100, actively
hire from other sectors, says Glen
Roberts, associate director at Marks
Sattin. The roles most open to out-
siders are those where industry
knowledge is less important and skill
gaps may be present. These include
management accounting and finan-
cial planning, or those in support
functions like legal and marketing.
Sidestepping recruiters and using
your network can be another way in. If
you have a close working relationship
with a respected member of the indus-
try who can vouch for your outstand-
ing work ethic, employers may be
willing to overlook any shortcomings
in technical knowledge.
But the type of professional who
would find a career move easiest, says
Neal Pavitt of Harrison Holgate, would
be one already employed in a very
numerically-focused role, like a busi-
ness analyst, statistician or financial
modeller. The profession is all about
calculating and managing risk, and
analytical minds are at a premium.
Industry-specific qualifications, like
the Advanced Diploma in Insurance,
can help with your application. But
you will need to weigh up whether the
potential benefit is worth the invest-
ment of time and money.
A career in insurance is not for every-
one. The pay can be low compared to
other City careers. The salary for a
London-based account director with
six to ten years experience ranges
from 39,190 to 71,606. Insurance is
also a specialist area: once you get in it
can be difficult to move. Finally, have
realistic expectations. Even if you
took a salary cut, it is unlikely you
would be able to move into a techni-
cally demanding role in an area very
different to your current role.
For all the latest insurance jobs follow
@CAMC_Insurance on Twitter. Or sign up
for a tailored alert at
The insurance industry is still shining in a otherwise difficult City employment market
The industry still has
demand for the right
kind of professional,
writes Chris Harlow
More City businesses are using public,
private and hybrid cloud systems than
ever. Make sure youre well-placed to
take advantage.
Find your next step at
Hiring in insurance is on the
rise: How to make the move
Quant Fixed Income
Market Trader
Salary: 120,000 per annum, plus
bonus and benefits
Location: Central London
A leading US and London-based
high frequency trading firm
requires a quant trader.
Candidates must have a PhD or
masters in computer science from
a top 100 global university, and
five years experience in a senior-
level trading position.
Text: JOB 33509 to 60066 for more
For more stories, go to:
Marketing guru Seth Godin talks about
his new book The Icarus Deception,
and what the connection economy
means for your career.
The rise of cloud computing
Seth Godin on success
Banking operations is becoming an
exciting and competitive area. Find
out the three skills that employers
look for and how you can get them.
Cambridge graduate, iron man
triathlete and managing partner of
audit at Deloitte Panos Kakoullis on his
career and how to get ahead.
Oiling the engine of the banks
A view from the top
Commercial U/Wmanager (0-10 yrs) 67-81
Senior commercial underwriter (6-10 yrs) 55-71
U/Wtechnician (6-10 yrs) 23-32
Claims manager (6-10 yrs) 42-50
Senior claims handler (6-10 yrs) 32-35
Claims technician (6-10 yrs) 27-33
Account director (6-10 yrs) 39-72
Account handler (3-5 yrs) 23-32
Broker technician (3-5 yrs) 20-29
Insolvency Partner
Salary: 125,000 to 300,000 per annum, plus bonus and benefits
Central London
A well-known mid tier firm is seeking a partner to grow its
insolvency practice. Applicants must currently be working in an
accountancy firm or an insolvency boutique.
Text: JOB 33325 to 60066
Director Scheme Actuary
Salary: 150,000 per annum, plus benefits
Central London
A large accountancy firm is looking to create a trustee department.
Candidates must be scheme actuaries, with entrepreneurial flair
and the backing of a large organisation and personal brand.
Text: JOB 33241 TO 60066
Global Financial Controller
Salary: 100,000 to 115,000 per annum
Central London
A global banks asset management division requires a high calibre
qualified accountant. Candidates must have strong communication
skills and a pro-active approach to problem solving.
Text: JOB 33794 to 60066
Finance Business Partner
Salary: 75,000 to 80,000 per annum, plus bonus and benefits
South East
A finance business partner is required by this growing Europe,
Middle East and Africa-focused entity. Candidates must be qualified
accountants with previous finance business partnering experience.
Text: JOB 34039 to 60066
Accounting Policy Manager
Salary: 70,000 to 75,000 per annum, plus car, bonus and
Central London
A leading global bank requires a high-calibre qualified accountant
to join its group accounting policy team. Candidates should be
commercially-minded and have technical accounting experience.
Text: JOB 33809 to 60066
Financial Controller
Salary: 61,000 to 80,000 per annum
A FTSE 250-listed property developer requires a financial controller.
Candidates must be degree educated, and fully-qualified ACA from
one of the Big Four. A background in property would be a bonus.
Text: JOB 33998 to 60066
Fund Accountant
Salary: 66,000 per annum
Central London
An investment management firm, specialising in cleantech
investments, is looking to hire an accountant as maternity cover.
Ideal candidates will have previous fund management experience.
Text: JOB 34008 to 60066
Property Finance Manager
Salary: 60,000 to 70,000 per annum
Central London
A pan-European investment company requires a finance manager
to review the financial control work of two funds. Applicants
should have at least two years post-qualified experience.
Text: JOB 33892 to 60066
Solvency II Finance Manager
Salary: 65,000 per annum, plus bonus and benefits
Central London
A London-based insurance company seeks a qualified accountant
with excellent Solvency II and IFRS knowledge. Responsibilities
include ensuring delivery within Solvency II reporting deadlines.
Text: JOB 33815 to 60066
Internal Audit Manager
Salary: 50,000 to 60,000 per annum, plus bonus and benefits
Central London
A leading spread-betting brokerage requires a senior internal
auditor. An accountancy or Institute of Internal Auditors
qualification is highly desirable.
Text: JOB 33955 to 60066
Assistant Management Accountant
Salary: 48,000 to 60,000 per annum
Central London
An asset management firm, specialised in renewable energy,
requires an assistant management accountant for a one to three
month period. Ideal applicants will be part-qualified accountants.
Text: JOB 34061 to 60066
Salary: 45,000 to 55,000 per annum
Central London
A property firm is seeking newly-qualified accountants to fill a role
split 50/50 between monthly accounts and business partnering.
Text: JOB 34036 to 60066
Finance Manager
Salary: 42,000 to 45,000
Central London
An investment firm requires a highly-driven ACA-qualified
accountant to take on a wide breadth of responsibilities.
Text JOB 34050 to 60066
Senior Asia Ex Japan Equity Portfolio Manager
Salary: 120,000 to 250,000 per annum
A top asset management firm requires candidates with a minimum
of director-level experience, and a track record managing an Asia
ex Japan equity fund.
Text: JOB 33093 to 60066
Director, Fund Management
Salary: 70,000 to 120,000 per annum
Central London
A wealth management firm requires an experienced director.
Experience across all major asset classes is desirable.
Text: JOB 33690 to 60066
Equity Fund Research Analyst
Salary: 70,000 to 80,000 per annum
Central London
A prestigious investment management firm requires an
experienced fund specialist to join a team of four. A genuine
passion for fund selection is vital.
Text: JOB 33721 to 60066
Financial Analyst
Salary: 60,000 to 66,000 per annum
Central London
A global investment manager requires an analyst on a six months
contract to take responsibility for financial analysis planning and
reporting on costs. A solid understanding of management
accounting principles is necessary.
Text: JOB 34035 to 60066
Operational Risk Manager, Fund Management
Salary: DOE
South East
A prestigious asset management firm seeks a risk specialist with
proven strategic planning and business/enterprise risk expertise to
implement new risk initiatives across the retail investment sector.
Text: JOB 33921 to 60066
VP Director Advisory Compliance
Salary: 90,000 to 120,000 per annum
Central London
An investment bank requires an experienced compliance officer.
Candidates must have broad technical knowledge, and have
previously covered equity and fixed income cash activities.
Text: JOB 34055 to 60066
Fixed Income Markets Compliance Advisory
Salary: 96,000 to 120,000 per annum
Central London
The fixed income front office of a City-based corporate and
investment bank is recruiting a compliance adviser. Applicants
must have a strong knowledge of fixed income products. This
opening needs to be filled urgently.
Text: JOB 33711 to 60066
Performance Measurement Analyst
Salary: 48,000 to 60,240 per annum
Central London
A major wealth and asset management firm requires an
experienced performance reporting analyst. Prior experience is
essential, and IMC or CIPM qualifications are preferred.
Text: JOB 33677 to 60066
Cost Analyst
Salary: 48,000 per annum
Central London
A real estate fund management firm requires a cost analyst on a
temporary basis. Ideal candidates are part-qualified accountants.
Text: JOB 34032 to 60066
Senior Commodities Advisory Compliance
Salary: 100,000 to 140,000 per annum
An Investment bank seeks a compliance professional to join its
commodities compliance division based on the trading floor
Text: JOB 34093 to 60066
Compliance Manager Foreign Corrupt Practices Act
Salary: 120,000 to 168,000 per annum
A professional practice requires a senior compliance officer to work
on a consultancy basis, with responsibility for FCPA compliance.
Text: JOB 33130 to 60066
Compliance Manager
Salary: 80,000 to 100,000 per annum
New York
An established global hedge fund requires a compliance manager
who is authorised to work in the US. The role is broad, and you will
be working to a risk-based review plan
Text: JOB 34010 to 60066
Hedge Fund Compliance Officer
Salary: 50,000 to 80,000 per annum
This is a newly created role for an experienced compliance officer,
with a strong knowledge of the FSA handbook. A background in
hedge funds, asset management, or sell-side is required.
Text: JOB 34094 to 60066
Operational Risk and Compliance Manager
Salary: 50,000 to 60,000 per annum
You will need to have a solid understanding of operational risk and
control frameworks, and its implications. The role will require you
to manage and improve current procedures.
Text: JOB 34002 to 60066
Compliance Officer to cover maternity leave
Salary: 50,000 to 70,000 pro rata
City of London
Providing maternity cover within the legal and compliance team of
a top European hedge fund. You will need to have two to five
years experience in investment management or hedge funds.
Text: JOB 33621 to 60066
Compliance Executive
Salary: 50,000 to 60,000 per annum
An investment manager seeks a generalist, with a minimum five
years experience. The role involves providing regulatory advice,
and assist in the implementation of new policies.
Text: JOB 33848 to 60066
Compliance Officer
Salary: 70,000 to 90,000 per annum
An investment firm seeks a compliance expert to be the firms
London expert on the FSA. You will need to demonstrate a strong
background in investment banking compliance.
Text: JOB 33846 to 60066
Compliance Analyst
Salary: 30,000 to 40,000 per annum
An investment management seeks an analyst to assist with a
variety of duties related to portfolio compliance, operating
policies, and fund/client imposed investment limitations.
Text: JOB 33844 to 60066
Principal EPM Consultant - Banking Industry
Salary: 70,000 to 90,000 per annum
Central London
A management consultancy requires experienced candidates who
specialise in enterprise performance management. Knowledge of
anti-money laundering principles is essential.
Text: JOB 33994 to 60066
Senior HCM Consultant
Salary: 60,000 to 80,000 per annum, plus car, bonus and
A leading management consultancy requires an experienced HCM
strategy consultant, focused on rewards and compensation.
Candidates must be capable of liaising with CFO stakeholders.
Text: JOB 34136 to 60066
Business Process Outsourcing Consultant
Salary: 50,000 to 90,000 per annum
A large consulting player has an opportunity for a professional
who can take all of his or her experience into a single project.
Finance experience would be a valuable asset.
Text: JOB 34003 to 60066
Senior Business Analyst
Salary: 70,000 to 80,000 per annum,
plus bonus and benefits
Central London
An established asset management firm is
looking for candidates with extensive
business analyst experience. Multi asset
class business knowledge is essential.
Text: JOB 33632 to 60066
Head of Compliance and Money
Laundering Reporting
Salary: 100,000 to 140,000 per annum
An opportunity has arisen in a private
equity firm. Candidates must have a strong
track record in compliance, ideally in
private equity or a hedge fund.
Text: JOB 34135 to 60066
Head of Financial Planning and Analysis
Salary: 90,000 to 100,000 per annum,
plus benefits and bonus
A financial services technology firm needs
to fill a newly-created position to support
its finance director. Candidates should have
a background outside of financial services.
Text: JOB 34045 to 60066
for details text JOB [job number] to 60066
For hundreds more top positions go to
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Lead Assessor - Consultancy
Salary: 60,000 to 70,000 per annum
A leading expert in responsible management practice requires
candidates able to provide consultancy support on ethical business.
Candidates will preferably have Big Four experience.
Text: JOB 33571 to 60066
Agile Project Manager
Salary: 40,000 to 50,000 per annum, plus benefits and bonus
An innovative technology consultancy requires an application
development project manager to work on site with prestigious
clients. Candidates must have good experience with Agile.
Text: JOB 33822 to 60066
Institutional FX Sales
Salary: 50,000 to 80,000 per annum
Central London
A leading global financial institution requires several top quality
eFX institutional sales candidates. Applicants must have three to
four years FX experience.
Text: JOB 33741 to 60066
Entry Prop Trader
Salary: 30,000 to 35,000 per annum, plus 100,000 bonus
Central London
A leading London-based trading house is looking to expand its
client base into FX and commodities. The job involves taking
absolute responsibility for the performance of trading strategies.
Text: JOB 34109 to 60066
CFX Manager
Salary: 65,000 to 85,000 per annum
A leading provider in foreign exchange requires a finance manager.
Candidates with experience of a treasury role or FX are ideal.
Responsibilities involve managing a team of two.
Text: JOB 34107 to 60066
FX Product Control Manager
Salary: 55,000 to 65,000 per annum, plus bonus and benefits
Central London
A leading bank requires a qualified accountant to join its treasury
product control team. Responsibilities include daily profit and loss
analysis of FX and derivatives.
Text: JOB 34143 to 60066
Head of Capital Planning
Salary: 100,000 to 150,000 per annum, plus benefits and
relocation package
A leading global insurance group requires a head of capital
planning to work in its Switzerland office. The job involves leading
the team responsible for analysing economic capital model results.
CFAs or qualified actuaries are ideal applicants.
Text: JOB 33740 to 60066
Financial Planning and Analyst
Salary: 75,000 to 95,000 per annum
Central London
A leading insurer is looking to fill a position as number two in its
finance team. Candidates must be either qualified accountants or
have worked in insurance for at least 10 years. Experience with
Oracle systems is ideal.
Text: JOB 34104 to 60066
Financial Accountant
Salary: 84,000 per annum
Central London
A Top Five general insurer is recruiting a group financial accountant
to join for an initial six month period. Candidates must have solid
technical knowledge, particularly of IFRS.
Text: JOB 34041 to 60066
Mergers and Acquisition Assistant Director
Salary: 110,000 per annum
Central London
A leading corporate finance firm requires a very high calibre
assistant director to join its M&A team. Applicants must have
outstanding academic records, and a proven record at a leading
investment bank.
Text: JOB 33787 to 60066
Director - Mining Corporate Finance
Salary: 125,000 per annum, plus bonus and benefits
A boutique investment bank, with a strong Canadian parent,
requires an experienced mining financier. Applicants must be
experienced bankers, covering mid-cap global mining stocks.
Text: JOB 33689 to 60066
M&A Senior Associate
Salary: 80,000 to 90,000 per annum, plus bonus
A leading corporate finance firm requires an exceptional senior
associate to join its M&A team. Candidates must have a proven
record of achievement at a top-tier investment bank.
Text: JOB 33789 to 60066
Associate - Corporate Finance
Salary: 60,000 to 70,000 per annum, plus bonus and benefits
A top-rated corporate finance advisory firm is seeking an associate
to join its growing London team. Successful candidates will have
three to five years experience in corporate finance.
Text: JOB 34033 to 60066
M&A Healthcare Analyst
Salary: 55,000 per annum, plus bonus and benefits
City of London
A leading specialist boutique, operating in life sciences, requires an
analyst to originate and execute corporate finance transactions.
Candidates must have a background in healthcare.
Text: JOB 33790 to 60066
Associate - Media and Television
Salary: 45,000 to 55,000 per annum, plus bonus and benefits
A TMT-focused corporate finance boutique requires an associate.
Candidates will have qualified in audit.
Text: JOB 34043 to 60066
Life Statutory Reporting Accountant
Salary: 55,000 to 65,000 per annum, plus bonus
Central London
A large UK life insurer requires qualified accountants with life
insurance experience. Strong IFRS and FSA reporting skills are
Text: JOB 33533 to 60066
Senior Marine Cargo Claims Adjuster
Salary: 45,000 to 65,000 per annum
Central London
An international insurer requires an experienced claims adjuster.
Experience of the marine insurance market is essential.
Text: JOB 33528 to 60066
Operations Analyst
Salary: 75,000 to 90,000 per annum
Central London
An established hedge fund is looking to fill a role reporting to its
head of operations. The job involves the full range of
responsibilities across desk support, middle office, and back office
management. Broad multi asset product knowledge is essential,
and experience dealing with commercial real estate loans is useful.
Tex: JOB 33611 to 60066
Securities Business Manager
Salary: 65,000 to 80,000 per annum
A securities house seeks a new business manager. Candidates
should be from a sell-side background.
Text: JOB 33541 to 60066
Trade Assistant
Salary: 40,000 to 50,000 per annum
An alternative asset management firm requires a trade assistant,
ideally with two to four years experience.
Text: JOB 34042 to 60066
OTC Trade Support Manager
Salary: 45,000 to 55,000 per annum
An OTC trade support supervisor, ideally with a brokerage
background, is required to supervise a medium-sized team.
Text: JOB 33716 to 60066
Director, Private Banking
Salary: 120,000 to 150,000 per annum, plus bonus
Central London
A prestigious private bank seeks a director, currently working
within wealth management, to manage and grow $70m of assets.
Text: JOB 33614 to 60066
Senior Private Banker
Salary: 120,000 to 240,000 per annum, plus bonus and benefits
An experienced private wealth manager is required to service
onshore and offshore clients across Switzerland and Europe.
Text: JOB 33255 to 60066
Private Banker Desk Head
Salary: 200,000 to 300,000 per annum, plus ultra competitive
A top-ranked private bank, based through the Middle East, requires
a desk head to aid the management of its Turkey ultra-high net
worth segment. Candidates will have an existing private banking
client portfolio already in place.
Text: JOB 33980 to 60066
Senior Private Banker
Salary: 65,000 to 120,000 per annum.
South East, London
An RDR-qualified banker with experience of servicing clients in the
UK and emerging markets is required. The candidate will need to
be mobile for the next two to three years.
Text: JOB 33254 to 60066
Quant Fixed Income Market Maker
Salary: 120,000 per annum, plus bonus and benefits
Central London
A leading high frequently prop trading firm has an outstanding
opportunity for a quant fixed income market maker. Candidates
must have a PhD/masters in computer science.
Text: JOB 33949 to 60066
Quant Trader
Salary: 70,000 to 100,000 per annum
A leading global investment bank requires two outstanding
quantitative individuals. Both roles require strong coding ability,
including C++ and possibly Python.
Text: JOB 33774 to 60066
Quantitative Developer Risk Big Data
Salary: 50,000 to 85,000 per annum, plus bonus and benefits
Central London
A financial risk management firm requires a C++ quantitative
developer to become involved in all aspects of the company.
Candidates should have financial regulatory experience.
Text: JOB 33465 to 60066
Equity Fund Research Analyst
Salary: 70,000 to 80,000 per annum
Central London
A prestigious investment management firm is seeking an
experienced fund research specialist. Successful candidates will
have the necessary skills to engage with all internal and external
Text: JOB 33721 to 60066
Fund Analyst
Salary: Strong basic, plus bonus and benefits
Central London
A leading international investment consultancy is looking to hire
an individual to be responsible for the research of, and ongoing
analysis and dialogue with fund managers around the globe.
Text: JOB 33826 to 60066
for details text JOB [job number] to 60066
Texts are charged at standard network rate
Terms apply. See
For hundreds more top positions go to
Graduate Trainee Sales and Dealing
Salary: Competitive, plus benefits
City of London
IG group is looking for graduates to join on
a six week structured training course.
Candidates must have a minimum of 2:1
degrees. This is an exciting opportunity to
join IGs sales and dealing operations.
Text: JOB 34064 to 60066
Corporate Finance Originator
120,000 per annum
Central London
A boutique advisory firm requires a senior
director in corporate finance. Candidates
with recent deal closing experience are
preferred, and ideal applicants will be from
larger banks.
Text: JOB 34076 to 60066
Private Equity Associate Fund
Salary: 70,000 per annum
Central London
An private equity fund management firm is
looking for two associates. Ideal candidates
will have a degree or PhD in a scientific
subject and a minimum of three years
experience in a bank or fund.
Text: JOB 34091 to 60066
Credit Rating Agency Internal Advisory
144,000 per annum
A international bank is looking to improve
its capabilities in credit rating agency
management. Candidates must have in-
depth knowledge and experience working
at Moodys, S&P or Fitch.
Text: JOB 34160 to 60066
Interim Head of Risk and Compliance
Salary: 204,000 per annum
Central London
A niche bank requires candidates who are committed to an interim
career, with a banking background and extensive years in risk or
compliance (and ideally both). The role involves managing the
credit approval process.
Text: JOB 34054 to 60066
Senior Quantitative Risk Modelling
Salary: 70,000 to 100,000 per annum
A leading global investment bank seeks to bring two outstanding
quantitative individuals to the London office of its global risk
modelling team. Strong coding ability is essential, particularly in
C++ but potentially Python also.
Text: JOB 33774 to 60066
Credit/Market Risk Consultant
Salary: 70,000 to 80,000 per annum
A market-leading consultancy seeks a risk consultant. Candidates
will have worked in a financial services risk function. Consulting
experience is useful, but not essential.
Text: JOB 33978 to 60066
Senior Quantitative Risk Manager
Salary: 60,000 to 85,000 per annum, plus benefits and bonus
A leading risk management consultancy requires a senior quant
risk analyst to work on site at leading Tier 1 investment banks.
Candidates must have a strong background in financial regulations.
Text: JOB 33875 to 60066
Senior Risk Consultant
Salary: 70,000 per annum
A growing consultancy has an opening in its risk practice.
Candidates will have experience from a player in the industry.
Basel III, liquidity risk, and stress testing knowledge is vital.
Text: JOB 33977 to 60006
Operational Risk and Compliance Manager
Salary: 50,000 to 60,000 per annum
A financial services firm seeks to fill a position providing
operational risk support. Understanding of regulation is essential.
The role involves providing educational support.
Text: JOB 34002 to 60066
Credit Risk Analyst - Counterparty Risk
Salary: 40,000 to 50,000 per annum
Central London
An individual with demonstrable relevant experience in a bank,
brokerage or trading house is being sought for a temporary to
permanent role.
Text: JOB 33384 to 60066
Property Sales/Middle East
Salary: Up to 100,000 per annum, plus relocation allowance,
bonus and benefits
Middle East
A Middle Eastern bank requires candidates with experience in real
estate within a reputable bank. Applicants will ideally have
knowledge of the GCC market. Arabic skills are useful.
Text: JOB 34110 to 60066
European ETRM Sales Manager
Salary: 110,000 to 130,000 per annum, plus bonus
Central London
A leading ETRM and CTRM vendor immediately requires a software
sales consultant. A proven track record in ETRM sales is vital.
Fluency in other European languages would be useful.
Text: JOB 33966 to 60066
Senior Pricing Manager
Salary: 60,000 to 75,000 per annum
A global bank has an exciting opportunity for a senior pricing
manager to develop, implement and maintain the pricing strategy
for its UK insurance business arm.
Text: JOB 34123 to 60066
Senior Strategy Development Manager
Salary: 50,000 to 70,000 per annum
A financial services firm requires a candidates to support senior
management in refining strategy for consumer lending.
Text: JOB 34125 to 60066
Senior Brand Design Manager
Salary: 50,000 to 60,000 per annum
A financial services firm has an opportunity to champion creative
expression at a top brand. Experience at a creative agency is vital.
Text: JOB 34119 to 60066
Senior Business Architect
Salary: 120,000 to 144,000 per annum
An entrepreneurial IT management consultancy is looking for an
architect with a proven track record of providing high calibre
architectural support in the business and strategy area.
Text: JOB 33946 to 60066
Chief Technology Officer
Salary: 100,000 to 150,000 per annum
A software vendor is looking to fill a board level role. Candidates
will be based in Russia for three months.
Text: JOB 33384 to 60066
ETRM Delivery Project Manager
Salary: 100,000 to 110,000 per annum, plus bonus and benefits
A leading ETRM consultancy is immediately seeking an exceptional
project manager with strong experience in ETRM. Candidates must
have excellent stakeholder management skills.
Text: JOB 33967 to 60066
NoSQL Hadoop Developer
Salary: 100,000 per annum, plus bonus and benefits
Central London
A niche software provider in the financial big data market requires
a candidate to join its in-house delivery team. This is a rare
opportunity to work with the top technologists in the industry.
Text: JOB 33422 to 60066
Senior Java Integration Developer
Salary: 85,000 to 100,000 per annum, plus benefits and bonus
A leading financial brokerages requires a developer to work on its
integration and latency monitoring of a low latency trading system.
Strong core Java development experience is vital.
Text: JOB 33885 to 60066
Tick Data Engineer
Salary: 80,000 per annum, plus bonus and benefits
Central London
A strong proprietary trading firm requires a candidate with a PhD
or masters in maths or computing. The job involves being the
single point of contact for resolving data problems.
Text: JOB 33172 to 60066
IT Security Manager
Salary: 80,000 per annum, plus bonus and benefits
Central London
A well-known tier 1 bank has created a role within the IT area to
facilitate a cohesive view of IT security bank-wide. Candidates will
have five years IT security experience in a financial institution.
Text: JOB 33317 to 60066
Business Intelligence Solutions Architect
Salary: 70,000 to 75,000 per annum, plus bonus and benefits
Central London
A technology consultancy requires a proven business intelligence
and solutions architect. Experience of banking is required.
Text: JOB 34173 to 60066
ETL Data Warehouse Designer
Salary: 72,000 to 96,000 per annum
Central London
A global investment bank is looking to fill a six month contract
with a possible extension, within a FX business area. Solid SQL skills
and hands-on experience of DQ/data profiling would be useful.
Text: JOB 33861 to 60066
Senior Java Developer - Big Data and Hadoop
Salary: 60,000 to 80,000 per annum, plus bonus and benefits
A financial services start-up, developing a revolutionary product
for the corporate governance sector, is looking to hire a senior
developer to work on Greenfield Big data development.
Text: JOB 33469 to 60066
Linux Hosting Systems Administrator
Salary: 60,000 per annum, plus bonus and benefits
East Anglia
A well-known global financial technology consultancy is looking
for a candidate with experience of Linux server administration.
Text: JOB 33550 to 60066
Portfolio Test Manager
Home Counties
Salary: 50,000 to 65,000 per annum, plus benefits
A European-wide insurance company requires portfolio test
managers to provide best practice guidance for critical major
Text: JOB 34180 to 60066
Java Developer
Salary: 45,000 to 55,000 per annum
Central London
A financial risk technology product vendor requires a developer to
join the full project life cycle development team. Core java multi-
threaded development knowledge is essential.
Text: JOB 33314 to 60066
IT Support Analyst
Salary: 45,000 to 55,000 per annum
Central London
A leading European hedge fund is seeking a high calibre individual
to join its infrastructure team. The successful candidate will have
excellent working knowledge of operating systems and networks.
Text: JOB 33888 to 60066
Senior Digital Project Manager
Salary: 40,000 to 45,000 per annum
Central London
An award-winning web design and development agency is looking
for a senior individual comfortable with managing budgets on
projects from 50,000 to 200,000-plus.
Text: JOB 33886 to 60066
Junior Developer/Designer
Salary: 23,000 to 25,000 per annum
Central London
City A.M. is looking to hire a junior developer with design skills to
join its expanding digital team. The role will involve exposure to
Text: JOB 34166 to 60066
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Risk Senior Manager
Salary: 120,000 per annum
A market-leading consultancy seeks
candidates who are interested in taking a
hands-on role, working with leading
financial services to implement change in
their risk divisions.
Text: JOB 34000 to 60066
Chief Technology Officer
Salary: 200,000 per annum plus bonus
and benefits
A world leader in commodities trading
requires a chief technology officer urgently.
Candidates must have an understanding of
SAAS Architects.
Text: JOB 33730 to 60066
Project/Delivery Manager
Salary: 120,000 to 192,000 per annum
A bank requires a project manager to
deliver global technology for a major risk
project. Knowledge of financial instruments
is vital. A technical background within
banking is required.
Text: JOB 34102 to 60066
THINK I closed my eyes as the
other boy pounded my face,
punch after punch. It seemed I
had no defence. Trying to hit
him back or to block him was
just useless. The minister eventually
broke us up, and it was only then
that I burst out crying. I didnt
come to church group for this! I
dont want to box! He looked at me
sadly. I had you do this for a reason:
its good for 14-year-olds. It helps you
grow up. A hundred thoughts filled
my head. I was normal, why did I
need to grow up? How does getting
beaten up somehow mature you? Is
there something religious about
suffering being good for you? But I
replied meekly, I just want to play
chess. He shook his head slowly.
Chess? Chess will never get you
Despite the advice, I never boxed
again, and I played lots of chess. I
played competitively, all over
Australia and later internationally. I
loved it. To me it was gymnastics
with the mind, a pure contest, one-
on-one, with no discrimination for
wealth, education or age. It was
perfect for me too, a small, shy,
lonely, backward and awkward boy
growing up in a loveless foster
Beating adults was the most fun.
It was puzzling that despite their
supposed superiority they were so
clumsy with their pawns and
bishops. I improved quickly and by
the time I was 15 made it into the
newspapers by beating the adult
state champion. As a top junior, I
gave exhibitions, playing lots of
people at once in supermarkets or
schools. I made good pocket money
and learnt to hustle playing the
park players for stakes.
Chess was good for me. Despite
the obsession, my school results
soared, my confidence
blossomed and I made lots of
friends. A beautiful
girl fell in love
with me,
watching me win
two games at
once I was
blindfolded. I learnt to think too.
After all, are there any other
activities that will get a teenager to
sit quietly, absorbed in deep
concentration and mental analysis,
while carefully choosing an option?
Certainly not computer games.
But at around 20, I abruptly
gave it up (until recently). I
realised I wasnt world class,
and I also realised the
diminishing returns
involved more and more
effort to get a little bit better. I
also realised that chess
has its limitations. Its a
strange game; you dont
talk to an opponent
while playing, its rude
to even look at him.
The big weaknesses,
though, are that in
chess there is no
randomness and that
all the required information is in
front of you. If you play the right
moves, youll never lose. My finance
and business careers were held back
until I realised that, just like in life,
the right decision doesnt always
win, and success doesnt always
reflect the right decision. You need
to expect the unexpected and
anticipate human reactions.
Observing the world around you is
not required in a chess battle.
Im far more worldly now than
when I was beaten up in church. But
Ill always be happy to be a little bit
of a nerd, because far from getting
me nowhere, chess was my
Richard Farleigh has operated as a
business angel for many years, backing
more early-stage companies than anyone
else in the UK.
Annabel Palmer talks to the pair behind Fab, the company trying to bring design to the masses
ASON Goldberg and Bradford
Shellhammer, founders of the
overnight internet sensation, were almost too busy
for our conversation to take
place. That may be an occupational
hazard if youve made it your
mission to change the world. is the hugely successful
flash-sale site, that sells design items
as diverse as furniture and
jewellery covering all price points.
Goldberg, it would seem, is a born
entrepreneur. He began his career
working on Bill Clintons 1992 presi-
dential campaign, before creating
two start-ups Jobster and Social
Median. Shellhammers background
is in retail design, but he also main-
tained a career as a prolific blogger.
The duo first met in a nightclub in
New York 14 years ago, but it was only
in 2010 that they joined heads to
form a travel guide, focused at the
gay community, called Fabulis.
I wasnt long before they realised
Fabulis didnt excite them, despite a
membership of 150,000 and a round
of funding that raised $2m (1.27m).
It wasnt going to change the
world, says Goldberg. So over dinner
and a bottle of wine in 2011, they
asked themselves what could achieve
this lofty ambition. My passion is
designing user interfaces; Bradfords
passion is helping people design
their lives. So I asked myself: How
can I bring Bradford to the rest of the
world? We knew design was the
Their investors and board of direc-
tors instantly supported their need to
pivot the business. That conversa-
tion lasted 20 minutes they knew
we were passionate, says
Shellhammer. You have to find one
thing youre truly passionate about
and do it. I didnt want to spend
another dollar, or minute, or
resource on something I didnt
believe could be big, says Goldberg.
They have never encountered any
challenges finding financial backing.
Theyve raised over $150m in three
different rounds since they launched.
What investors want is a big idea,
backed up by data.
In February 2011, they targeted a
June launch. In the interim, Goldberg
built the technology; Shellhammer
worked with the design community
to source designers and products.
They had 175,000 people sign up to
the website (only 5,000 of which had
transferred from Fabulis), before they
launched the result of highly-target-
Company name: Fab
Founded: 2011
Number of staff: 650
JobTitle: Founder and chief executive
Age: 40
Lives: New York City
Studied: MBA at Stanford University
Drinking: Bordeaux red wine
Reading: Instagram photographs
Talents: Making people smile
Favourite business book: The Phaidon
Archive of Graphic Design
Heroes: Jeff Bezos
Jobtitle: Founder and chief design
Age: 36
Born: Baltimore
Studied: Communications and media
studies, Goucher College
Drinking: Ketel One on the rocks
Reading: Specimen Days, by Michael
Favourite business book: The
Philosophy of Andy Warhol
Motto: Be loud. Never let others
keep you quiet
Shellhammer (left) and Goldberg (right), are in this for the long term
Chess players may be nerds but they sometimes pack a punch
NTREPRENEURS found start-ups.
Being entrepreneurial means
starting a new company, with an
original idea, or a more efficient
process. Or so the old story goes.
But does it need to be this way? Not
according to professor Miguel Meulemann of
Vlerik Business School in Belgium.
Meulemann has launched a new initiative
at the school devoted to promoting and
explaining the advantages of company buy-
outs for budding entrepreneurs. There are
lots of obstacles between theory and
practice for anyone looking to start a
successful business. Only a few succeed, he
explains. But the risks involved in a buy-
out are a lot lower than those involved in a
start-up, as the company already has an
existing product along with its own clients,
suppliers, and investors.
He is correct. An existing company has a
history a proven idea, a supply chain, and
most have a market. A buy-out may also be
an interesting idea for employees of a
privately-held business. If your employer is
in trouble, and you consider yourself (or you
and your colleagues) better suited to
running the firm, buying him or her out
could the solution.
Its not necessarily a simple process. How
do you value the firm, for instance? And
once youve reached a valuation, how will
you fund the purchase? Many companies
(especially smaller ones) are sustained by
relationships that border on the personal.
With new management in charge, will those
But if you are interested in buying an
existing company, there are also solutions to
these problems. Lloyds TSB Commercial
Finance, for example, offers specialist
management buy-out products that enable
you to leverage the value of a firms assets.
This may allow you to fund a buy-out
without relinquishing equity or taking on
additional debt.
Meulemann isnt saying buying an
existing company is necessarily any easier
than starting one of your own. But its at
least worthy of some consideration.
Tom Welsh is business features editor at
City A.M.
Buying an existing
firm has its pluses
Why sometimes it pays
to return to square one
Hed rather be playing
ed Facebook advertising. I spent
around $50,000 doing that so not a
lot of money and focused on users
who had an interest in design, technol-
ogy and start-ups. We created a viral
effect, says Goldberg. On their first
day they sold $65,000 worth of prod-
uct. It took 20 days to sell $1m. In 2012,
sales grew by 500 per cent. How do
they explain the instant success? The
formula is simple. We put products on
our website that excited people, that
they wouldnt find elsewhere, and that
were never knockoffs. We were
At least, until the Samwer brothers
the German trio who have made a
business out of finding promising
internet companies, and cloning them
internationally created rival brand
Bamarang. But it couldnt compete
and has since shut down, and 30 per
cent of Fabs sales are now outside the
US. Astonishingly, almost a third of its
sales are done on mobile apps, about
half of its 11m members come from
social sharing, and on any day 25 per
cent of its traffic comes from
Facebook. This may explain why over
half of its members are under the age
of 35.
I ask whats next. They inform me
that they want to be the next Ikea the
$30bn business, that operates in 80 dif-
ferent countries, and represents the
same thing all over the world.
Goldberg has a plan to get Fab to $1bn
in sales within the next three years.
But even then, well only be one thirti-
eth the size of Ikea. I wonder if
Goldberg, for whom this is one of
many start-ups, will stay at Fab for
long. Shellhammer is quick to say hes
in it forever. And Goldberg? Im in it
for as long as Bradford is here.
HETHER YOU crave sea air
and sunshine, meadows
and mountains or lush
forests, nows the perfect
time to plan a spring break
to blow away the winter cobwebs.
Jump in the car and make tracks to a
beautiful UK bolthole, lace up your
walking boots and tackle some of
Italys most scenic hill climbs, strap
on a snowboard in the French Alps or
take to a horses back for unspoilt
ocean views on the Isle of Man. These
holiday ideas will provide a much
needed dose of fresh air to get the
whole family moving.
Loch-side family fun in Scotland
Scotland is renowned for its
countryside and lochs, so why not
combine the two with a trip to the
Queen Elizabeth Forest Park at the
foot of Ben Ledi mountain. Learn
how to canoe as you explore the
wonders of Loch Lubnaig.
Or you could head off on a hidden
glen safari. With the help of an
experienced guide, discover the rich
history and unique nature of
Strathyre. Look out for elusive red
deer and golden eagles while
learning how farming past and
present has shaped the landscape.
Where to stay: Forest Holidays
provides luxury log cabin breaks in
Strathyre within the Queen
Elizabeth Forest Park to suit all
family sizes. Prices start from 272
for a four night break.
Hill walking in Tuscany
Olive groves, vineyards, and endless
picturesque villages make Tuscany a
hikers dream. There are countless
trails in the region suitable for
hikers of all abilities, many of which
climb into the lush Tuscan hills and
offer panoramic views of the region.
If youre ready to don your
walking boots, a good place to start
is Gorgiti. Here a 16km trail passes
through the slopes of Pratomagno, a
mountain range surrounded by the
river Arno on the side of the
Valdarno valley.
Where to stay: Tuscany Now
offers villas in some of the best
walking territory of the region.
Prices start from 571 per week.
Horseriding on the Isle of Man
A short skip and jump from the
mainland, flights from London City
to the Isle of Man take just over an
hour. This underrated island is an
adventure playground for lovers of
the great outdoors. One of the best
ways to see the countryside is on
horseback. Wade through rivers and
canter through secluded stretches of
the 100 mile coastline. Trek deep
into the beautiful countryside to
experience breath-taking views only
accessible from horseback.
Take the reins at one of the
islands trusted riding stables to
develop your equestrian skills in a
safe learning environment. The
Ballchurry Equestrian Centre offers
beach and river rides and provides
tuition for riders as young as four
years old.
Where to stay: The Sulby Glen
Hotel near the town of Ramsey is a
traditional country inn and
provides a warm welcome to
families. The inn has lovely views of
Kimberley Button picks five of the best half term holiday ideas to keep the family happy
the glens and mountains and is
renowned for home-cooked hearty
food just what you need after a
day in the fresh air on horseback.
Standard room rate is 35 per
person, per night including
Archaeology in Sicily
Sicily is a history lovers paradise.
The Mediterranean was the cradle
of western civilisation and this
island was at its heart: its littered
with relics from the last 3,000 years.
Make the most of the quiet season
and gentle climate by paying a visit
to The Valley of the Temples near
Agrigento on the south coast. The
valley is home to eight ancient
Greek temples in various states of
dilapidation, including the many
sturdy columns of The Temple of
Hercules and the remarkably well-
preserved Temples of Concord. The
site is surrounded by olive groves
and overlooks the Mediterranean
Make sure you leave enough time
to visit the nearby National
Archaeological Museum, which is
filled with fascinating ancient
artefacts a must for history lovers
of all ages.
Where to stay: Sicily offers a
wide range of family-friendly villas
that are ideal for a half term
break. Villa Olive is a
contemporary property with easy
access to the beach, a private
panoramic pool and olive groves
for exploring. Villas start from
5,610 per week.
Swaying palms and sand in Barbados
If youre in need of a big dose of
sunshine, head for the soft ,white
beaches and sparkling waters of the
Caribbean. Mullins Beach, found on
the west coast of Barbados, is a
popular choice for families,
boasting villas with sun decks
metres from the waves. This golden
stretch, also known as the Platinum
Coast, has calm waters ideal for
swimming and snorkelling. You
may be tempted to stick to
sunbathing, but if you venture from
your lounger you will be rewarded
with some memorable days out,
including the Barbados Wildlife
Reserve, the Animal Flower Cave
(which boasts tidal pools and sea
caves that harbour all kinds of sea
creatures), and Harrisons Cave,
where kids can explore a dizzying
array of stalactites and stalagmites
deep beneath the earth.
Where to stay: CV Travels
beachfront house Easy Reach is
positioned directly on Mullins Beach,
with golf and tennis facilities close
by. The villas staff will do the
cooking, leaving you to enjoy a
relaxing family holiday. The villa
sleeps six and prices start from
3,152 per week.
Clockwise from top left: loch-side fun in Scotland; the ultimate
relaxation in Barbados; horseriding on the Isle of Man; hiking in
Tuscany; the mystery of Sicilys ancient sites
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Fill the grid so that each
block adds up to the total
in the box above or to the
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You can only use the
digits1-9 and you must not
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a block. The same digit may
occur more than once in a
row or column, but it must
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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 6
7 8
9 10 11
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16 17 18
19 20
22 13 15
22 11
10 13
8 21
24 19
11 30
23 6
39 7
11 21
14 23
16 11 10
1 Pain sometimes
by divers (5)
4 Category (5)
7 Pear-shaped
fruit (7)
8 Leguminous
plant (3)
9 Espresso cofee
with milk (5)
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on the west coast
of Florida (5)
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insects (5)
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(abbr) (3)
17 Onwards,
ahead (7)
19 Motionless (5)
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on (5)
1 Noisy altercation (5)
2 Prex meaning recent
or modern (3)
3 Oil-bearing laminated
rock (5)
4 Cuts into pieces (5)
5 Ancient jar usedto
hold oil or wine (7)
6 Person held in
servitude (5)
10 Large hemispherical
instruments (7)
12 Pipes (5)
13 Dreadful, terrible (5)
14 Brief ing of unrestrained
spending (5)
15 Location of something
surrounded by
other things (5)
18 Unit of surface
area equal to 100
square metres (3)

2 1 4 9 7 9 1
6 3 9 1 4 3 5 2
2 7 4 5 8 9 6
3 4 1 2 6 8 9
8 6 2 8 9 3 7 6
9 5 3 1
2 4 8 1 3 2 7 1
5 8 8 6 9 4 5
5 4 2 7 3 1 6
2 6 1 3 8 2 9 1
7 9 4 9 5 8 9
The nine-letter word was
BBC2, 8.30PM
Michel Roux Jr and Kate Goodman are
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touch with her dead partner.
In association with
Phil Tufnell - The most loveable bad boy
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Sam Torrance - A member of the European
Ryder Cup team a remarkable 8 times! A golng legend!
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Midday to 5pm, The Brewery, 52 Chiswell Street, London, EC1Y 4SD
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VETERAN midfielder Ryan Giggs
continued his sensational record of
scoring in his last 23 league seasons
for Manchester United, after notching
in yesterdays win.
The evergreen winger opened the
scoring at Old Trafford, moving Giggs
closer to adding a 13th Premier
League winners medal to his trophy
cabinet as United moved 12 points
clear at the top of the table.
The goal settled any nerves among
the 75,000-plus crowd after Robin van
Persie had missed a gilt-edged oppor-
tunity to give United ahead.
The Dutchman beat the Everton
offside trap on 10 minutes and raced
past goalkeeper Tim Howard, but saw
his shot cannon back off the post.
Just three minutes later though
39 year-old Giggs turned in Van
Persies pass for his first league goal of
the campaign.
Leon Osman went close to levelling
with a well-struck volley amid a good
spell for Everton midway through
the half.
Evergreen Giggs earns
three points for United
MANCHESTER UNITED................2
EVERTON ...................................0
ASTON VILLA..............................2
WEST HAM..................................1
But the home side struck again as
the game moved into first-half stop-
page time when Van Persie rounded
Howard, but this time made no mis-
take with his finish.
A tame second-half was lit up only
by a sensational effort from Tom
Cleverley, which produced an equally
spectacular save from United old boy
Man United 26 21 2 3 62 31 65
Man City 26 15 8 3 48 24 53
Chelsea 26 14 7 5 55 28 49
Tottenham 26 14 6 6 44 30 48
Arsenal 26 12 8 6 50 29 44
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Nigeria are champions of Africa
FOOTBALL: Nigeria won the Africa
Cup of Nations (ACN) last night, with
a 1-0 victory over Burkina Faso in
Johannesburg, South Africa. A volley
by Sunday Mba shortly before half-
time earned the Super Eagles their
first ACN win since 1994.
Britain progress in the Fed Cup
TENNIS: British stars Laura Robson
and Heather Watson won their ties
against Dia Evtimova and Tsvetana
Pironkova respectively, as Britain
beat Bulgaria in the Fed Cup
yesterday. The team discover on
Wednesday who they will face in a
group two play-off.
WEST Ham manager Sam Allardyce
insisted his team deserved to come
away with all three points from Villa
Park yesterday, despite succumbing
to their ninth Premier League defeat
on the road.
A penalty from Christian Benteke
and a free-kick by Charles NZogbia
earned Aston Villa their first win in
nine league games, although a late
Ashley Westwood own goal resulted
in a nervous final few minutes.
If we didnt have [their] keeper in
such brilliant form again, I think
wed have won, Allardyce said.
Our creative play in the second
half particularly was great,
outstanding, apart from the
ultimate clinical finish.
The Hammers have won only two
of 13 league away games this season,
yet remain 11th in the table.
A 73rd minute penalty saw
Benteke send Jussi Jaaskelainen the
wrong way, and five minutes later
NZogbia doubled Villas lead,
curling a free-kick over the wall.
On 87 minutes Westwood flicked
an inswinging Joe Cole cross into his
own net, but it proved too little, too
late for the east Londoners.
West Ham sink
to ninth away
league defeat
Ryan Giggs scored his first Premier League goal of the season against Everton
QBE Insurance (Europe) Limited, QBE Re (Europe) Limited and QBE Underwriting Limited are part of QBE European Operations, a division of the QBE Insurance group. All three companies are authorised and regulated by the Financial Services Authority.
The England rose is an oficial registered trade mark of the Rugby Football Union and is the subject of extensive trade mark registrations worldwide.
Business insurance specialist
Proud to be title sponsor of the QBE Internationals.
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We mean business.
Whatever your business insurance needs, ask
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N a weekend when the Six
Nations threw up yet more
great action and Manchester
City effectively handed the
Premier League title to their good
friends across town, you probably
dont want to read yet another
article about drugs in sport. You are
drugged-up and drugged-out thanks
to Lance Armstrong.
And therein lies the problem.
Because of cyclings most notorious
leper, theres a danger that we all
saw the headlines last week about
the drugs crisis enveloping
Australian sport, and because it
wasnt Britain, and because it was
yet another drugs story, passed by
on the other side. No Samaritans
we, when it comes to salvaging the
reputation of sport Down Under.
Make no mistake, this is serious
stuff. According to the Australian
Crime Commission, organised
crime syndicates have been involved
in systematic doping programmes
across a variety of sports. Doubtless
for legal reasons although it also
smacks of a degree of cowardice
the commission has refused to
name clubs and individuals
concerned, but very clearly
implicated are Australian rules
football and rugby league. The cloak
of suspicion hangs over an entire
industry, prompting Prime Minister
Julia Gillard to demand that all
sports come clean about their
clearly very dirty secrets. Many are
describing the revelations as the
blackest of all days in Aussie sport.
Half a world away, we probably sit
back rather smugly and say if its a
systematic programme, its not a
very good one, because Aussie sport
is going down the tubes, Bruce.
But weve had a couple of low
level cases ourselves recently, one in
athletics and one in rugby league.
Not anything to get too excited
about, but proof there are still, and
always will be, people out there
trying to gain an unfair advantage.
It is hard to remember the last
time major sporting authorities in
this country announced their
doping procedures and results, but
shouldnt events in Australia
prompt them to do so? Ive even
received misguided correspondence
questioning whether the
phenomenal defensive efforts of Six
Nations teams is down to just hard
work and collective will. While the
Aussie sports fan reels from the ACC
revelations, we need to reassure an
increasingly jaundiced sporting
public that what they are seeing
with their own eyes is for real.
Governing bodies should stand
up and be counted and tell us what
they are doing to combat the
problem. And the rest of us must
never get tired of reading about
drugs stories, because the moment
we do, the bad guys have won.
John Inverdales column is brought to
you by QBE, the business insurance
specialist. QBE is an Official Partner of
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For more information, please visit
In association with
Bad guys win the moment we tire of doping scandals
Farrell kicked two penalties in each half to maintain Englands 100 per cent record
SCOTT Johnson is determined to
build on his maiden win as
Scotland interim head coach when
Ireland visit Murrayfield in two
weeks time.
Johnson who took charge in
December saw his side beat Italy
34-10 on Saturday with tries from
Stuart Hogg, Matt Scott, Sean
Lamont and Tim Visser and wants a
repeat performance next time out.
The ability to put Italy away was
pleasing, he said. But it amounts
to nothing unless we come here
against Ireland and do it again.
Johnson wants
Ireland repeat
INTERIM head coach Rob Howley
believes Wales can look forward to
their rugby once again after a 16-6
win over France on Saturday ended
their eight-game losing streak.
Since winning the 2012 Grand
Slam Wales had suffered a series of
narrow defeats, but they were back
to their best in Paris.
Good sides dont become bad
overnight, Howley said. The self-
belief and confidence we have tried
to keep going was very evident.
Howley happy
to end hoodoo
ICE-COOL fly-half Owen Farrell
played down the pressure of kicking
England to victory in the cauldron of
Dublins Aviva Stadium yesterday
after his penalties cemented their
RBS Six Nations favourites status.
The 21-year-old landed two kicks in
each half as England overcame ener-
gy-sapping conditions and a fiercely
competitive Ireland side to make it
two wins from two.
If you practise enough it is only
another kick and its no different in
the stadium, said Farrell. The con-
ditions werent great but we rolled
our sleeves up and got stuck in.
Englands gritty triumph was in
stark contrast to last weekends styl-
ish demolition of Scotland but every
Unfazed Farrell
kicks England
to gritty victory
bit as welcome, coming 10 years since
their last victory in Dublin, and
leaves them top of the table.
Farrell slotted the visitors in front
after just three minutes and added
another penalty on the half-hour,
while Irish hopes were hit by injuries
to Simon Zebo and Jonathan Sexton.
Both sides were fortunate to avoid
yellow cards, Ireland No8 Cian Healy
for a stamp on Dan Cole that sparked
a skirmish, and Farrell for dragging
back scrum-half Conor Murray.
The hosts were handed a lifeline
four minutes after the break, when
England were penalised for collaps-
ing the scrum and Ronan OGara
despatched the penalty.
England then lost flanker James
Haskell to the sin-bin, and OGara
took advantage to kick Ireland level.
Manu Tuilagi went closest to a try
when an unkind bounce from Ben
Youngss chip saw the ball evade his
grasp, but a penalty, which Farrell
converted, proved adequate consola-
tion and another successful kick
from the youngster sealed the win.
ENGLAND .................................12
Watch Englands best battle it out to be crowned Champions at the worlds biggest club rugby nal. Enjoy it all in style.
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FINAL 2013
MANCHESTER United boss Sir Alex
Ferguson believes a record-
breaking 20th Premiership
crown is on its way to Old
Trafford after yesterdays 2-0
win over Everton moved his
side 12 points clear at the
top with 12 games to go.
Goals from Ryan Giggs
and Robin van Persie
ensured United capi-
talised on Manchester
Citys shock 3-1 defeat at
Southampton on
Sir Alex senses
title is en route
to Old Trafford
BY JOSH RICHARDS Saturday. And while the United
manager refuses to write off
second-placed Citys title tilt he
believes the silverware is now
within his sides sights.
The result has put us in
a fantastic position,
Ferguson said.
When we got to the
last 15 minutes we
showed a steely determina-
tion to see it out. All we can do
now is keep winning.
Robin van Persie scored his 23rd goal
of the season against Everton Englands Chris Ashton (left) and Dylan Hartley celebrate the 12-6 victory in Dublin
ENGLAND head coach Stuart
Lancaster set his sights on a
massive next RBS Six Nations
fixture against France after his side
ground out their first win in Dublin
for 10 years.
Two penalties in each half from
fly-half Owen Farrell earned England
a hard-fought 12-6 victory that,
following an eventful second
weekend, leaves them the only team
with Grand Slam hopes intact.
France, who followed defeat in
Italy with another loss to Wales on
Saturday, are next to test Englands
credentials at Twickenham on 23
February, and Lancaster is expecting
a titanic clash.
He said: The stakes have always
been high but theyre even higher
with France coming off a defeat. It
will be massive.
England end
10-year wait
for Dublin win
We must never tire of
reading about drugs stories,
because the moment we do,
the bad guys have won


John Inverdale: Page 27