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FTSE 100 ▼5,976.00 -42.89 DOW ▼12,630.03 -130.33 NASDAQ ▼2,845.06 -26.83 £/$ 1.64 unc £/¤ ▲1.14 +0.01 ¤/$ ▼1.42 -0.02
Brown aide:
Labour needs
growth plan
ONE OF Gordon Brown’s top economic
advisers has called on Labour to pres-
ent an alternative to the government’s
plan to cut the deficit through spend-
ing cuts instead of “carping” .
Writing in City A.M., Dan Corry, who
was a member of Brown’s Downing
Street policy unit, said it was “very
easy to fall into the trap of having a
gleeful grin not when unemployment
falls but when it rises”.
Corry’s comments came as the Bank
of England lowered its growth fore-
casts yesterday. It now predicts growth
of about 1.7 per cent in the four quar-
ters to the end of this year, down from
its February forecast of two per cent.
Growth in the year ending 2012 will
now be around 2.5 per cent, the Bank
expects, lower than its previous esti-
mate of closer to three per cent.
Ed Balls, Labour’s shadow chancel-
lor, seized on the downgrade as proof
the planned spending cuts “will make
it harder to get the deficit down”.
But Corry, now at FTI Consulting,
said: “Balls has to do more than carp,
more than critique. While it may be
right to point out that... this recovery is
going to be much less strong than
those in the 80s and 90s, that will not
convince voters that Labour could
have done better or would do better in
the future.”
“Balls and [Ed] Miliband will only get
Labour ready as a potential party of
government again if they spend time
developing and articulating what
Labour’s economic strategy for growth
is, and why it can work.” MORE: P6-7
BY DAVID CROW
POLITICS

Galleon boss Raj Rajaratnam goes down with his ship as he is found guilty of fraud and conspiracy
THE BIGGEST insider dealing case in
hedge fund history ended yesterday
with Raj Rajaratnam, the Svengali-like
boss of Galleon Group, being convicted
of fraud and conspiracy.
Rajaratnam now faces up to 19 and
a half years behind bars for master-
minding a vast conspiracy that traded
on illegal information on companies
including Google, Intel and Hilton,
netting the tycoon tens of millions of
dollars.
The ruling brings to an end the
most high profile financial prosecu-
tion since Bernie Madoff was slapped
with a 150 year sentence for his $65bn
Ponzi scheme in 2009.
Questions will now be asked about
how the compliance systems of some
of the world’s biggest financial institu-
tions allowed Rajaratnam’s network of
contacts to access its treasure-trove of
confidential information.
High profile figures from Goldman
Sachs, McKinsey and Moody’s all fea-
tured in the sprawling case, which
spanned nine months and included a
wealth of secretly recorded wiretap
evidence. Former McKinsey director
Anil Kumar pleaded guilty to passing
inside information to Rajaratnam in
exchange for about $2m (£1.2m).
Rajat Gupta, a former Goldman
Sachs director who also went on to
work for McKinsey, was last week
accused by the SEC of passing on confi-
www.cityam.com Issue 1,380 Thursday 12 May 2011 FREE
RATE HIKE
THIS YEAR
INFLATION TO
PROMPT RISE,
SAYS BANK P6
GET TRIATHLON TRAINING
FROM DALEY THOMPSON
EXCLUSIVE READER OFFER P29
BUSINESS WITH PERSONALITY
dential information when he was a
director at the bank. He denies the
claims. Deep Shah, a lowly junior ana-
lyst at Moody’s who is now on the run,
stands accused of tipping yet another
Rajaratnam mole.
Rajaratnam’s conviction marks an
incredible fall from grace for a man
once seen as one of the brightest stars
on Wall Street, whose Galleon fund
managed more than $7bn in assets.
In the end, the Sri Lankan-born
investor, who says he will appeal, was
undone by his own hubris. The govern-
ment covertly recorded discussions in
which he bragged about the size and
accuracy of his network of sources.
Robert Falkner, financial services lit-
igation partner at Reed Smith, told City
A.M. this case is especially significant
because of the sheer scale of
Rajaratnam’s operation. He said:
“Often in these cases you find one or
two rogue individuals. But this is a pro-
fessional who has operated a business
largely based around access to price
sensitive information that had been
obtained inappropriately.
“This makes it stand out from other
cases. It is an area that, to date, prose-
cutors have not been very successful
in, despite widespread suspicions that
some insider trading is going on.”
He added: “The Financial Services
Authority would love to nail a case like
this in the UK.”
GUILTY: GALLEON
MAN FACES JAIL
BY STEVE DINNEEN
ENFORCEMENT

Certified Distribution
28/02/11 - 03/04/11 is 105,180
News
2 CITYA.M. 12 MAY 2011
Red-tape war
on work rules
IN A bid to counter accusations that it
is not doing enough to reduce red tape,
the government yesterday revealed
plans to review three key areas of
employment law.
The government is considering
reducing the 90-day required consulta-
tion period over collective redundan-
cies, as well as capping compensation in
discrimination awards at employment
tribunals. Businesses have criticised
both as a disincentive to hire. It is also
mulling a simplification of the TUPE
Regulations, designed to protect
employee terms when a business is sold.
Employment relations minister
Edward Davey said the reforms would
“make it easier for businesses to take
on staff and grow.”
Chancellor George Osborne also
chipped in: “I say to the business com-
munity ... don’t be passive observers.
Don’t stay on the sidelines. Get stuck in
to the argument.”
Unions panned the proposals, saying
it would be harder for staff to chal-
lenge unfair treatment. Unison
demanded “urgent talks” with govern-
ment over the plans.
Meanwhile, in a report out today the
CBI revealed that workplace absence
rose last year, with each UK employee
taking an average of 6.5 days off sick –
a total of 190m working days – cost-
ing employers an estimated £17bn.
BY KATIE HOPE
EMPLOYMENT

Gulliver’s off to quiet start at HSBC
I
N the ever changing world of
banking, it was the turn of
HSBC’s new chief executive
Stuart Gulliver yesterday to
inform investors of his bank’s strategy
for the future. In recent weeks, both
Bob Diamond of Barclays and António
Horta-Osório of Lloyds Banking
Group, have had a turn at imposing
their personalities at their new posts.
Osório has caused the biggest
splash, dramatically reversing his
bank’s policy on the mis-selling of
payment protection insurance, and in
effect causing all his rivals to aban-
don their appeal against the com-
plaint measures. Osório is causing a
stir in banking circles, with some
already comparing him to his
Portuguese compatriot the football
manager Jose Mourinho, the self-pro-
claimed Special One. Life is unlikely
to be quiet in UK banking while
Osório is around.
Gulliver is a different proposition.
There will be change at HSBC, but it is
likely to come about in an evolution-
ary rather than revolutionary way.
Yesterday around 100 investors and
shareholders took the lift to the 41st
floor of the bank’s Canary Wharf
headquarters to hear Gulliver and 17
of his top managers talk about focus,
connectivity and efficiency savings.
The day lasted from nine in the morn-
ing until 6.20 in the afternoon and
the sessions broke only for occasional
refreshments.
Cost cuts are essential, was one
message, with between $2.5bn and
$3.5bn cut from the annual cost base
in an effort to bring the cost income
ratio down.
But the real message is on focus;
focus on the most profitable coun-
tries to be in and a focus on the most
profitable businesses to be in.
In Hong Kong and the UK, for
example, HSBC will continue to build
on its large retail presence but in
many parts of the world, where it is
sub-scale, it will exit. HSBC currently
has 296,000 employees in 87 coun-
tries but the bank has said that at
least 39 of those countries are ear-
marked for possible exit.
Advisers say that Gulliver is intent
on bringing in some of the initiatives
he presided over as head of global
banking – selling unprofitable arms,
keeping costs down and letting go the
least efficient five per cent of employ-
ees every year – to the bank as whole.
All in all, it sounds pretty sensible
as a strategy and could well enhance
shareholder value. But my money’s
on Osório to create the most head-
lines and best performance in the
years ahead. MORE HSBC: P 4-5
HELICOPTER CRASH
As the Kremlin-backed company
Russian Helicopters pulled its $500m
London flotation yesterday, as we said
it would the day before, its chief exec-
utive came out with a curious state-
ment. “We believe market
participants will benefit from more
time to reflect upon the true value
and growth potential of our busi-
ness,” he said.
Sorry to state the obvious, but I reck-
on investors spent a month reflecting
on the group’s true value and too
many of them decided they didn’t
want any of it. End of.
CITY A.M. AWARDS
Entries to our annual awards are due
in by Friday week, so please hurry if
you or your company want to be a
prizewinner at one of the City’s most
prestigious events.
Details of the entry process are
available at the website address:
www.cityamawards.com.
david.hellier@cityam.com
THE UK chief executive of McDonald’s
called for an end to snobbery sur-
rounding university degrees yester-
day, arguing that many workers
would be better off learning through
their job.
Jill McDonald said young people
should not see a degree as their only
option and should consider a job
with an employer such as McDonald’s
that will offer them training.
“We need to remove the snobbery
that does down workplace learning,”
she told the Institute of Directors
conference. “For many put off by high
fees, this could and should be the
route they take.”
McDonald’s has pioneered training
programmes for its staff to counter
its association with dead-end roles,
which have become known as
McJobs, and McDonald said 16,000 of
the 85,000-strong UK workforce were
currently training for qualifications.
DIARY: P13
BY ALISON LOCK
EMPLOYMENT

University not only option
McDonalds’s UK chief Jill McDonald believes workplace training can replace a degree
NEWS | IN BRIEF
Cisco down as results disappoint
Network giant Cisco Systems warned of
continuing weak growth last night as it
posted a 17.6 per cent fall in net profit in
the three months to April, compared
with the same period in 2010. Profit fell
to $1.8bn (£1bn) from $2.2bn in 2010
despite sales revenue rising 4.8 per cent
to $10.9bn in the quarter. But Cisco
shares fell three per cent in late trading
after chief executive John Chambers
said revenues would be only between
zero and two per cent higher in the next
quarter, below analyst consensus esti-
mates.
BA cabin crew spat nears end
The dispute between British Airways
and its cabin crew could come to an end
today, when the Unite union is expected
to present the terms of a peace deal to
its members. An email to members of
the British Airlines Stewards and
Stewardesses Association said yester-
day that talks between the airline and
unions to end the 18-month dispute
“have now concluded to the satisfaction
of both parties”. Unite declined to com-
ment on the status of talks last night,
while BA said talks were continuing.
7
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Chancellor George
Osborne told business
groups to “get stuck
in” to debating change
in employment laws
EDITOR’S LETTER
DAVID HELLIER
MP TALKS TOUGH OVER SSE MIS-SALE
The UK’s big gas and electricity sup-
pliers should be forced to repay any
profits made by mis-selling their
products on the doorstep, the chair-
man of an influential House of
Commons committee has suggested.
Scottish and Southern Energy was
found guilty of unfair trading on
Tuesday after its door-to-door sales
agents used a “misleading” script to
sign up customers.
TOYOTA SUFFERS FROM STRONG YEN
Toyota has pleaded for relief from the
strong yen as it seeks to repair the
financial damage from March’s earth-
quake and tsunami, a call that could
add to pressure on Japan’s govern-
ment to resume intervention in the
currency market. Chief financial offi-
cer Satoshi Ozawa said Toyota had
“reached the limits of our ability to
manufacture in Japan”.
FRANCE TO BAN FRACKING OF FOSSIL
FUELS
French lawmakers have voted to ban a
controversial technique used to
extract shale gas and oil that oppo-
nents say contaminates the environ-
ment. If the vote by the lower house
of parliament passes the Senate next
month, France will be the first coun-
try to ban hydraulic fracturing, also
known as fracking. The process
injects water, chemicals and sand
into rock formations to break them
open and extract fossil fuel deposits.
GOOGLE THREAT TO SHUT SWISS
STREET VIEW
Google is threatening to shut down its
Street View mapping service in
Switzerland unless the country’s
supreme court overturns a ruling
requiring an absolute guarantee of
anonymity for people photographed.
Withdrawing Street View from an
entire country would be Google’s
biggest retreat to date in response to
complaints over privacy violations.
ALLEN & OVERY SETS TREND FOR
FREEZING PAY OF ALL NEWLY
QUALIFIED CITY LAWYERS
Allen & Overy blamed a “flat” com-
mercial legal market for its decision to
freeze salaries for junior lawyers yes-
terday. Pay for newly qualified solici-
tors at the City law firm will be held at
£61,000 while rates for lawyers at
other levels of the pay ladder will also
stay the same as last year, Britain’s
fourth-biggest law firm said. Other
City law firms are likely to follow.
OFGEM GETS BLAME FOR A LOSS OF
TRUST IN BIG SIX
Britain’s top energy suppliers round-
ed on Ofgem yesterday, claiming that
the regulator bore responsibility for
eroding consumers’ trust in them.
The companies are unhappy with the
populist tone adopted in the media
by Ofgem’s chief executive Alistair
Buchanan.
BANK OF ENGLAND DISMISSES
STARBUCKS’ ATTACK ON COFFEE
SPECULATORS
Bank of England policymakers doused
talk that speculators are harming the
economy by forcing up commodity
prices. Charlie Bean, the deputy
Governor, and Paul Fisher, the execu-
tive director of markets, said prices
tend to be underpinned by “funda-
mentals”. Addressing the recent crash
and mini-rebound, Mr Fisher said:
“There’s always clearly some froth in
markets.”
JAPAN TO INJECT FIVE TRN YEN INTO
TEPCO NUCLEAR COMPENSATION FUND
Japan's government is planning to
inject about ¥5trillion (£37.4bn) into a
fund to help Tokyo Electric Power com-
pensate victims of the crisis at its
nuclear plant and save Asia’s largest
utility from ruin. The scheme is
designed to protect bondholders.
SPRINT SAYS T-MOBILE DEAL
THREATENS ITS EXISTENCE
AT&T Inc.'s chief executive, Randall
Stephenson, defended his ambitious
$39 billion takeover of T-Mobile USA
before skeptical lawmakers while
rival Sprint Nextel said the merger
threatened its existence as a stand-
alone company. Democrats on the
Senate Judiciary panel expressed the
most doubts about the deal, saying
they didn't want to reconstitute the
“Ma Bell” monopoly.
GOOGLE TO LAUNCH CHROME LAPTOPS
IN JUNE
Google previewed the first laptops
running the company's Chrome oper-
ating system, machines that will go on
sale next month as part of the Internet
giant’s challenge to Microsoft’s
Windows franchise. The computers,
unveiled at a Google conference, are
dubbed “Chromebooks”.
WHAT THE OTHER PAPERS SAY THIS MORNING
BANK of Italy governor Mario Draghi
won the blessing of German chancel-
lor Angela Merkel to become the next
president of the European Central
Bank (ECB) yesterday.
Draghi, who will replace Jean-
Claude Trichet in October when his
eight-year term ends, will have to lead
the ECB through interest rate rises to
counter inflation in the trading bloc,
as well as an ongoing sovereign debt
crisis among peripheral nations.
Merkel told Die Zeit newspaper that
Draghi “stands very close to our agen-
da of stability and solid economics.”
He will be nominated on 16 May.
CRUDE oil prices dropped below $100 a
barrel and US petrol futures slumped
yesterday, fuelling hopes that UK fore-
court prices may fall substantially soon.
Crude futures plunged more than
five per cent in the week’s second major
oil price fall, with light sweet crude for
June hitting a low of $97.50 (£59.55).
Brent crude traded at a low of $111.95
per barrel, substantially down from
highs of $126 seen at the end of April.
The downward pressure sparked
hopes that UK petrol prices may fall in
sympathy, though Brian Madderson,
chairman of RMI Petrol, which repre-
sents independent fuel providers, said a
sustained downward trend was not yet
clear.
“In the short term it is the UK whole-
sale cost of fuel that determines prices
at the pump, not the cost of Brent
crude,” he said. “Wholesale prices have
been extremely volatile over the past
week or so, with daily moves of both
plus and minus 2p-per-litre – so the
trend is hard to fathom.”
UK retailers Tesco, Asda and
Morrisons cut their petrol prices on
Monday for the first time since last
August. Tesco said then that most stores
would cut petrol by 1p per litre (ppl)
and diesel would fall by up to 3ppl.
Poor industrial data from China and
an unexpected rise in US fuel stocks
prompted a fall in wholesale fuel prices
so great it triggered a circuit breaker on
the Chicago Metals Exchange that saw
futures trading blocked for five min-
utes. A group of 17 US senators also
wrote to energy regulator the
Commodity Futures Trading
Commission calling for more action to
end oil price speculation.
The fall in energy stocks also hit the
Dow, which closed one per cent lower.
US TRADE GAP, CHINESE DATA: P21
Oil price fall
fuels hopes of
cheaper petrol
GREECE descended into violent anti-
austerity protests as European Union
and International Monetary Fund
auditors arrived in Athens to assess
the strength of its finances yesterday.
As a 10,000-strong union protest
over public spending cuts disintegrat-
ed into clashes with police, the bailout
audit team started a week of meetings
to understand whether the debt-rid-
den country may need further aid.
Concerns mounted in the market
and the euro fell against both the
pound and dollar at various stages yes-
terday over concerns that Greece may
require billions of fresh bailout funds
just a year after receiving a €110bn
(£96bn) international loan.
Officials denied reports that the EU
was considering offering Greece a fur-
ther €60bn in aid.
Protests in Athens
as EU debates aid
GOVERNMENT plans to introduce
elected police commissioners were
thrown out of the House of Lords yes-
terday thanks to the support of 13
Liberal Democrat peers, in an embar-
rassing defeat for the coalition.
Peers voted 188 to 176 in favour of
an amendment wiping out the clause
on allowing US-style elected crime
commissioners from the Police
Reform Bill.
The defeat of the coalition policy
came despite Lib Dem leader Nick
Clegg’s efforts to whip peers into
opposing the amendment. The bill
will now return to the Commons.
Lib Dem Lords
reject police law
Germany backs
Draghi for ECB
BY ALISON LOCK
ENERGY

EU ECONOMY

POLITICS

BY ALISON LOCK
EU ECONOMY

News
3 CITYA.M. 12 MAY 2011
Greek police in riot gear clashed with protestors angered by government austerity cuts in Athens Picture: REUTERS
ANALYSIS l Brent Crude Oil Futures
$
14Feb 3May 13Apr 24Mar 4Mar
130
125
120
115
110
105
100
95
113.35
11 May
HSBC unveiled a strategic overhaul
yesterday that will see the bank cut up
to $3.5bn (£2.14bn) in costs, cut “sub-
scale” retail operations and review its
presence in 39 countries.
“We are not going to try to be all
things to all people in all markets,”
said chief executive Stuart Gulliver as
he launched a plan to refocus the firm
on commercial banking, which he
called its “DNA”.
“Sometimes we struggle to explain
why we’re in 87 countries. We have
allowed the market to view us as a
retail bank,” he told an all-day gather-
ing of investors and analysts in the
bank’s Canary Wharf headquarters.
He added that in fact, the lion’s
share of the bank’s profits stem from
commercial and wholesale activities.
Highlighting its ballooning cost
base, he said: “We’ve got multiple lay-
ers of head offices – two in this build-
ing alone… We clearly have a cost
problem.” But he said the cost-cutting
would have to go beyond tinkering
measures like cutting down on hotel
laundry expenses during business
trips: “It takes an awful lot of socks to
get to $2.5bn.”
In a presentation that offered
“selected examples” of how the bank
would achieve its income-to-cost ratio
target of 48-52 per cent by 2013,
finance director Iain Mackay prom-
ised to save $300m by shutting down
head offices, $275m by overhauling
the bank’s IT and $100m from a
“reduction of paperwork”.
But investors were told not to
expect cuts in other areas: while
expenses rose $1.5bn between 2009
and 2010 due to “wage inflation”,
Gulliver said HSBC was “not going to
compromise on talent” and would
continue to increase costs for recruit-
ing purposes.
Investors keen for details of asset
disposals were disappointed, however.
While Gulliver said that the bank
would look for an “exit” from busi-
nesses that offered neither returns
nor a solid deposit base, he said only
that specific sales would be
announced over the coming months.
However, a sale of the bank’s US
credit cards business looks all but cer-
tain. Gulliver said it was “not fully
aligned with strategic customer base”
and that it required further invest-
ment for which “HSBC’s appetite is
limited”. He would give no details of
other disposals, except to deny that
the bank has plans to sell its 16 per
cent stake in Chinese insurer Ping An.
Gulliver: Commercial
banking is our DNA
BY JULIET SAMUEL
BANKING

Focus on HSBC
4 CITYA.M. 12 MAY 2011
Lots of platitudes but little red meat
WITH around £1.5 trillion of assets
on its balance sheet, HSBC is practi-
cally the size of a country. Perhaps
that’s why most of the ideas
unveiled at yesterday’s hotly-antici-
pated “strategy day” seem to have
been stolen from a Whitehall effi-
ciency review.
First there was the £100m saving
that will come from a “reduction of
paperwork”. A further £300m will
be saved by “de-layering and simpli-
fying regional structures” (whatever
that means). Then there is the de
rigueur overhaul of the bank’s com-
puter system; investors weren’t told
how much this novel idea will save
in the end, but they were led to
believe it will slash a huge amount
from costs.
Just like Whitehall mandarins,
HSBC executives were curiously
tight-lipped about what assets the
bank plans to flog, save for yet
another “review” of some US opera-
tions, and the number of jobs it is
going to cut. The bank must surely
have a plan for cutting red meat if it
is serious about saving at least
$2.5bn by 2013, but it certainly did-
n’t let investors in on the secret yes-
terday.
Despite 200 pages of presenta-
tions that took nine hours to get
through, there was remarkably little
that was new in yesterday’s
announcements. We do know that
the bank is likely to quit retail bank-
ing in Poland, Spain and Italy, like it
has in Russia and that – surprise,
surprise – it wants to divert capital
to fast growing emerging
economies: who wouldn’t? But the
new return on equity target of at
least 12.5 per cent was well-trailed,
as was the goal of reducing the cost
efficiency ratio – which is stubborn-
ly high – to at least 52 per cent.
It is strange that yesterday was
such a damp squib. Stuart Gulliver,
the recently-installed chief execu-
tive, has coveted the top job for
many years, and made no secret of
the fact. Investors were expecting an
explosion of ideas, underpinned by
radical thinking, not platitudes and
techno-babble.
During his three decades of loyal
service to HSBC, Gulliver has demon-
strated a huge amount of patience.
Now he needs to up the tempo.
david.crow@cityam.com
BOTTOMLINE
Analysis by David Crow
ANALYSIS l HSBCHoldings p

14Feb 9May 13Apr 24Mar 4Mar 740 720 700 680 660 640 620 600 646.10 11May
ANALYSIS l HSBC Holdings
p

14Feb 9May 13Apr 24Mar 4Mar
740
720
700
680
660
640
620
600
646.10
11 May
$1.8bn
Pre-tax profits
Latin America
$500m
Pre-tax profits
North America
THE MANAGEMENT | THE EXECUTIVES CHARGED WITH OVERHAULING HSBC
GULLIVER’S TRAVELS
Alan Keir head of
commercial banking
Brian Robertson
CEO Europe
Chris Meares CEO,
global private banking
Emilson Alonso
CEO, Latin America
CHIEF executive Stuart Gulliver said yesterday that HSBC’s top executives would be evaluated based on a
new “report card” that would put “courageous integrity” at the heart of its dealings, which he added was
“not some happy clappy strap-line”. The strategy they will have to implement involves evaluating the
bank’s businesses on the basis of their returns, efficiency and “connectivity”. Comparing the bank’s global
footprint to the networks of a telecoms company, Gulliver said that its most profitable activities “rely on
the network, the network of branches that we have and the position we have in more than 80 countries. I
strongly believe we do benefit from a network effect”.
You can call our business advisers free from O2 mobiles during opening hours. Terms apply to all our packages, see o2.co.uk
0800 781 1328
Visit o2.co.uk/yourbusiness
or text ADVISER to 61002
Our UK-based business advisers have plenty of know-how.
So they can find you the right package. At the right price.
The 160 hours our business
advisers spend training
35 hours
on the nuts and bolts of
all our products
25 hours
understanding which tariffs
are best for your business
4 hours
of hot-off-the-press updates
18 hours
of fine-tuning all these skills
4 hours
of well-earned coffee breaks
30 hours
on how to speed things
through the system
20 hours
learning how to treat
customers really, really well
28 hours
of technical stuff
Focus on HSBC
5 CITYA.M. 12 MAY 2011
AT A GLANCE: THE MAIN POINTS
● RETURNS
The bank reiterated its 12 to 15 per cent
return on equity target, saying it would
achieve this by concentrating on growing
its private bank and wealth management
divisions as well as investing heavily in
Asia, including in wage costs and new
branches, with China and India the top pri-
orities for retail banking growth.
●COSTS
Reiterated target for cost-to-income ratio
of 48 to 52 per cent (versus 61 per cent
last quarter) by 2013. In order to do so,
Gulliver said the bank would cut $2.5bn to
$3.5bn in expenses by 2013. This would be
achieved by shifting from a “loose, federal
structure” to “consistent business models”,
enabling shared IT. A broader IT overhaul
will consolidate hubs and move infrastruc-
ture to cheaper locations. The bank will
also shut down surplus head offices and
get rid of extra managers.
● LIQUIDITY
HSBC intends to maintain a 90 per cent
ceiling on its loans-to-deposits ratio and
will consider keeping low-returns business-
es if they contribute significantly to group
funding.
●DISPOSALS
Little new information was divulged, but
the bank summarised its decisions so far:
it will save $90m in Europe by exiting
retail businesses in Russia, save $180m to
$200m by exiting pension businesses in
Mexico and Costa Rica, “review” US cards
and retail businesses for a likely sale of
parts and announce other disposals of low-
returns businesses in due course.
● CORPORATE GOVERNANCE
The strategy day is to become annual and
the bank will continue with full quarterly
earnings updates. It will introduce a new
“report card” for executives who will be
asked to display “courageous integrity”.
This will involve both concrete targets and
a shift from “command and control” to a
“values” culture.
$4.3bn
Pre-tax profits
Europe
$11.6bn
Pre-tax profits
Asia
$900m
Pre-tax profits
Middle East and
north Africa
Peter Wong
CEO Asia
Niall Booker
CEO North America
Iain Mackay Group
finance director
Samir Assaf CEO global
banking & markets
Simon Cooper CEO Middle
East & North Africa
Paul Thurston CEO retail bank-
ing and wealth management
INVESTORS hoping for a radical vision
from HSBC at its strategy day
expressed disappointment yesterday
and the bank’s shares fell back to close
down 1.54 per cent lower for the day.
BNP Paribas’ Sin Fai Lam sum-
marised the review as “reiteration, no
revolution” and called the stock “a bor-
ing yielder” while Seymour Pierce’s
Bruce Packard said of its headline fig-
ures: “Most of these targets have
already been outlined.”
After viewing the main points, RBS
analysts concluded: “We see little
explicit emphasis on group revenue
growth or on how to create more
shareholder value from the mainland
China strategy. In our view, these are
critical to drive a sustained re-rating
from here.”
However, most analysts are still bull-
ish on the stock, citing the bank’s
exposure to high-growth markets as
the main reason.
The bank said that it would use dis-
posals to mitigate the impact of Basel
III capital requirements and offered a
moderate assessment of the interim
report released by the Independent
Commission on Banking: “We’re wait-
ing to see how much bail-in debt we
have to hold... The ringfence proposals
are what was expected,” said chairman
Douglas Flint.
Tepid response to
strategy overhaul
BANKING

NETWORK HQ: LONDON
ASIAN HUB: HONG KONG
* 2010 figures
THE BANK of England risks missing its
inflation target for most of the next
two years, it admitted yesterday,
raising expectations that it will hike
interest rates this year.
Consumer price inflation is “more
likely than not to remain above the tar-
get throughout 2012,” the Bank said in
its Inflation Report, launched yester-
day. The consumer price index came
in at four per cent in March, twice the
Bank’s two per cent target.
“There is a good chance that infla-
tion will reach five per cent later this
year,” the Bank, led by governor
Mervyn King (pictured), now fears.
New projections show inflation eas-
ing to the two per cent rate around
March 2013, assuming interest rates
rise at levels expected by the markets.
If rates do not rise, inflation “is more
likely to be above target than below it”,
even two years ahead.
The market expectations used by the
Bank include a rate hike this year,
despite dovish anticipations prior to
the report’s publication.
“This report hints at risks of earlier
rate hikes,” said ING’s James Knightley.
Downbeat news on first-quarter
growth in
recent weeks
had caused
markets to
push back
their expec-
tations for the
BoE’s first rate
rise since 2007
into next year.
But sterling
overnight interest
rate swap rates
showed markets
almost fully
pricing a rate
hike in
November, and
fully by
D e c e m b e r ,
although many
economists expect
an earlier move.
Interest rate
hike looms as
inflation soars
HOPES of an export-led recovery were
dealt a minor blow yesterday, as the
UK’s trade deficit was shown to have
widened in March.
The deficit in goods and services
grew to £3bn in March, from £2.7bn
in February, while visible exports fell
by 3.4 per cent compared to February.
Services exports continued to grow,
however, with the UK’s surplus on
services coming in at £4.7bn, £400m
higher than the previous month.
“Despite March’s drop in export
volumes, UK exporters are relatively
upbeat, particularly as there is now
some evidence of a rebound in
demand for UK products in the US,”
said Kah Chye Tan of Barclays
Corporate.
Despite March’s setback, the UK
deficit still narrowed across the first-
quarter of the year, and exporters
have become more confident going
into the second-quarter according to
a survey by Travelex.
“Interest rates play a strong role in
determining the strength of curren-
cies and we can clearly see this play-
ing out in April,” said Travelex
director David Sear.
“Not only has the European Central
Banks’ hawkish approach hugely sup-
ported the euro, it has also energised
UK exporters.”
GROWTH forecasts by the Bank of
England are now even weaker than in
February, worsening the headache
for its monetary policy committee
and endangering chancellor George
Osborne’s deficit reduction plan.
“The Bank’s forecasts are moving
towards our less optimistic projec-
tions,” said Simon Kirby of the
National Institute for Economic and
Social Research (NIESR). Chancellor
Osborne will need even greater tax
hikes or spending cuts if he wishes to
eliminate the deficit by the end of
Parliament, Kirby expects.
Even excluding the effect of the
heavy snow in December, the econo-
my has been virtually stagnant for
the last six months, the Bank thinks.
Yet some doubt appeared to be cast
over recent Office for National
Statistics GDP figures. “Business sur-
veys and the growth in employment
over recent months suggest that
underlying activity may have been
stronger than indicated by official
output data,” the Bank said.
UK’s trade gap
widens despite
strong services
Probability
-1.0 1.0 0.0 6.0 4.0 5.0 2.0 3.0
4
3
2
1
0
Growth revised down
May Forecast
February Forecast
GDP %
BY JULIAN HARRIS
UK ECONOMY

UK ECONOMY

Focus on Inflation Report
6 CITYA.M. 12 MAY 2011
BY JULIAN HARRIS
UK ECONOMY

Probability
-2.0
CPI %
0.0 -1.0 1.0 6.0 4.0 5.0 2.0 3.0
4
3
2
1
0
Inflation revised up
May Forecast
February Forecast
ANALYSIS l Growth and inflation forecasts for the second quarter of 2012
Economy to expand less
than expected, Bank says
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News
7 CITYA.M. 12 MAY 2011
Balls must offer alternative instead of carping
E
VERY time there is new
economic data, a ritual plays out.
The government welcomes the
numbers, but shadow ministers
claim they aren’t what they seem and
that gloom is just around the corner. I
remember it well from my time advis-
ing former Prime Minister Gordon
Brown.
For almost a decade Tory shadow
chancellors had to grit their teeth in
the face of good economic news.
Remember them saying that they
were overjoyed that growth was con-
tinuing, inflation was low and employ-
ment was hitting record levels? Of
course you don’t. They struggled to
argue that underneath the surface
things were not well (maybe more
right than they knew) that growth was
less strong than some other country or
group of countries, or that the real tax
take was up (even if real post tax wages
were rising).
That for good or bad, is the lot of the
opposition economic spokesperson.
Now Labour and Ed Balls have that
role to play. It is almost their constitu-
tional duty to point out the weakness-
es in the situation and on the
strengths, to point to the signs of
gloom and doom not the signs of
emerging “green shoots”. And of
course that is legitimate not least as
they strongly believe that the govern-
ment is following the wrong policy.
But it is very easy to fall into the trap
of having a gleeful grin not when
unemployment falls but when it rises,
not when GDP gets back on track but
when it turns out not to have risen at
all over the last six months. “Talking
the economy down” is the accusation
and it is something that the public do
not like.
How do you avoid it then? It is not
easy. If you say anything positive then
the government will leap on it as an
admission that they are doing the
right things and that your policy is
therefore in tatters. So in all
probability only your negative com-
ments will get commented on in any
case.
COMMENT
DAN CORRY
What you need to do is to present
your overall view as to how to make
the economy strong, to stick to that, to
criticise the government for not doing
that – whatever it is – but to leave
yourself room to welcome good news
from wherever it comes.
And as importantly you have to
avoid being trapped, cornered by the
turn of events. The Conservatives near-
ly got trapped in Labour’s “success”
years, claiming it was all about to fall
apart and arguing, if anything, for
more spending and less banking regu-
lation. But Osborne and Cameron
neatly managed to escape at the last
minute into a critique of government
policy when the financial crash kicked
in and eventually got to the safer
ground of tucking in behind a more
traditional Tory policy of deficit reduc-
tion and public spending cuts.
Balls and Miliband have been going
hard on arguing that the economy is
at risk from cuts that go too far too
fast. They may well be right but as they
will know, however bad things are
now – partly due to the coalition poli-
cies – eventually growth will return. At
that point Tory politicians, business-
men and commentators will turn
round and say “told you so”.
That is why Balls has to do more
than carp, more than critique. While it
may be right to point out that even on
OBR forecasts this recovery is going to
be much less strong than those in the
80s and 90s, that will not convince vot-
ers that Labour could have done better
or would do better in the future.
So while the weekly and monthly
round of responses to data must go on,
Balls and Miliband will only get
Labour ready as a potential party of
government again if they spend time
developing and articulating what
Labour’s economic strategy for growth
is, and why it can work. That is the real
task ahead and they need to get to it.
Dan Corry works for FTI Consulting and is a
former Treasury and Downing Street adviser
Currency cross Premium Account
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EURGBP 1.8 2.4
AUDUSD 1.9 2.4
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SAINSBURY’S yesterday said 40 per
cent of its sales would be “non-food”
by 2020 as it increasingly relies on
clothing and other products for
growth.
The supermarket chain is in the
middle of huge expansion with
clothing and general merchandise
being given more space.
Sainsbury’s reported a 12.8 per
cent jump in annual pre-tax
profits to £827m as it unveiled its
strategy.
Like-for-like sales for the year
to 19 March were up by 2.3
per cent. The group also said
that it had won market
share from rivals, taking
it from 16.1 to 16.3 per
cent. But chief executive
Justin King (pictured) said
growth of non-food sales –
which are growing three
times faster than food – need-
ed to be developed.
He said: “This will be the shape of
things to come as we look at non-
food. By 2020, 40 per cent of sales will
be from non-food.” King denied ana-
lyst concerns about financial con-
straints on future expansion, saying
the group had “plenty of funding”.
Credit Suisse analysts were disap-
pointed by a 14 basis point increase
in Sainsbury’s underlying operat-
ing margin, which they contrast-
ed with a bigger rise at Wm
Morrison Supermarkets. Net
debt rose to £1.8bn from £1.5bn
last year and is expected to hit
£2bn by the end of next
year.
But the company said
its expansion would even-
tually ensure that figure
was reined in. On the con-
sumer outlook, King said:
“Things are tough and con-
sumers are being careful.
“However, as Easter
showed, they do have
money available to spend
on special occasions.”
Sainsbury’s
shifts focus
to non-food
OCADO led the FTSE 250 fallers yes-
terday, with its shares dropping over
nine per cent after it admitted its
sales were checked by capacity con-
straints.
Ocado’s growth slowed from 24 per
cent in its first-quarter to 18 per cent
in the last three months. It says it
expects sales to grow by 21 per cent in
the first half of the year.
An Ocado spokesman said: “The
Hatfield customer fulfilment centre
remains capacity constrained in the
near term. Investment is continuing
to increase weekly order capacity.”
The grocer, which predominantly
sells the products of upmarket grocer
Waitrose, said the glut of recent pub-
lic holidays also hit its sales.
It added it has leased a 100,000
square foot warehouse close to its
main distribution centre in Hatfield,
north of London, from which to
develop its non-food business.
A second core warehouse is under
construction in Warwickshire, due to
be finished by the end of 2012.
The slump sent Ocado’s shares,
down 211p yesterday, fuelling fears
that they could eventually fall below
their 180p flotation price.
Last year Ocado was forced to slash
its IPO valuation by 20 per cent, in a
desperate eleventh hour bid to keep
the float alive.
It eventually hit the bottom end of
its 180-200p a share – far below its
initial range of 200-275p a share.
Some analysts baulked at even the
lower price, slapping a value of
around 120p a share on the firm.
However, after hitting a closing low
of 123p, it has seen its share price
creep up, hitting a high of 285p in
February.
Numis analyst Andrew Wade said:
“With new kit being installed, we
expect a re-acceleration in the second
half, and are encouraged by the
impressive EBITDA conversion on
incremental sales.”
Ocado was set up by former
Goldman Sachs bankers Tim Steiner
(pictured right), Jason Gissing and
Jonathan Faiman.
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t
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Jan Feb Mar Apr May Jun Jul Aug
Ocado tumbles after sales slowdown
BY JOHN DUNNE
RETAIL

BY STEVE DINNEEN
RETAIL

News
9 CITYA.M. 12 MAY 2011
ANALYST VIEWS: IS THE GROWTH SEEN AT
SAINSBURY’S SUSTAINABLE? Interviews by John Dunne


RICHARD HUNTER | HARGREAVES LANSDOWN
Sainsbury is positioning itself for further growth, especially in the areas
of convenience stores, online business, and an increasing move into non-food prod-
ucts. On the downside, wider economic uncertainty remains and cheaper selling
prices do not always equate to higher profits, since margins are squeezed.




CLIONA LYNCH | VERDICT RESEARCH
Sainsbury's growth in sales has been fuelled largely by expansion, with
new space contributing 2.6 per cent to overall growth. Elsewhere trends in top-up
shopping are boosting convenience stores with customers buying little and often,
while the “Feed your family for £50” campaign is hitting the right note.




CHRISTOPHER HOGBIN | BERNSTEIN RESEARCH
While Sainsbury's increased its full-year dividend by 6.3 per cent to 15.1p
– representing a 4.2 per cent yield – investors will likely be concerned that manage-
ment gave little re-assurance about the dividend outlook. At 12.8 times price to earn-
ings ratio we see better value in the other UK names in our coverage.


Ocado co-founder Tim Steiner saw its
shares slump seven per cent yesterday
ANALYSIS l Ocado Group p

14Feb 9May 13Apr 24Mar 4Mar 260 250 240 230 220 210 200 190 211.00 11May
ANALYSIS l Ocado Group
p

14Feb 9May 13Apr 24Mar 4Mar
260
250
240
230
220
210
200
190
211.00
11 May
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News
10 CITYA.M. 12 MAY 2011
More work placements will benefit London
IT IS the age-old paradox of London.
The city is a global economic power-
house, a job-creation machine, but has
stubbornly high unemployment. It is
one of the world’s great training and
education capitals, where people flock
from far and wide to improve their
skills, and yet it has a large pool of
unskilled workers. Two of the most
commonly expressed concerns of busi-
nesses and the young are in reality
mirror images of each other – employ-
ers complain they cannot get the
workers with the skills they need,
while young people (and their parents)
fret they won’t get the opportunities
they need to get ahead in life.
As the Prime Minister will
announce today with the Mayor in the
Olympic Park, there is a solution.
Employers need to help make people
job-ready, and a valuable addition to
the workforce. Doing this has social
benefits, but helping upskill the work-
force is also in employer’s self-interest.
It is not something that schools and
colleges can do in isolation.
In the past year we have been cam-
paigning to increase the level of
apprenticeships in London, up from
its historic low level, with a target of
20,000. With help from consultants at
Accenture, we have shown employers
that apprenticeships can be reconfig-
ured to be appropriate to the modern
service sector economy, not just tradi-
tional areas such as manufacturing.
London companies have responded
with enthusiasm because they can see
VIEW FROM CITY HALL
ANTHONY BROWNE
that it is a cost-effective way to recruit,
train and retain a skilled and dedicat-
ed workforce. Big names like Microsoft
and HSBC are now embracing appren-
ticeships – and more financial services
firms are set to follow. Thanks to this
campaign, apprenticeships have been
rising far faster in London than else-
where.
But there is more we can do. Many
young people – particularly those who
grew up in workless households – have
little insight about the world of work.
They need to experience work first
hand to raise their aspirations – there
is no better cure for demotivation than
seeing something worth striving for.
The government has said that it wants
to allow employers to take young
unemployed people for short unpaid
placements without them losing their
unemployment benefits: it is clearly
better that they go into a workplace
than sit at home. Many employers have
told us they are enthusiastic about
this, while for the young unemployed
the benefits of this experience and
subsequent opportunities are obvious.
London employers have embraced
apprenticeships: for the same reasons,
they should now embrace work place-
ments for the young unemployed.
Anthony Browne is an adviser to the
Mayor of London
BELEAGUERED property adviser DTZ
Holdings saw its shares soar almost
40 per cent in trading yesterday after
it said it had received a possible offer.
DTZ said it had received “a number
of approaches for investment…includ-
ing a possible offer” for the company.
DTZ, majority-owned by French fam-
DTZ shares soar on hopes of bid
PROPERTY

ily trust Saint George Participations,
said it was holding discussions with
parties that had made approaches
but cautioned that discussions were
at a very early stage.
DTZ has suffered continued share
price declines in the past year and
made a £6m pre-tax loss in the half-
year to October 2010. Its share price
closed 22 per cent up at 39p.
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BURGEONING sales in the US and
Asia pushed Prudential’s profits up 17
per cent in the first-quarter of 2011, it
said yesterday.
New business profits at the life
insurance and pensions giant rose to
£498m from £427m in the first-quar-
ter of 2010 while new business sales
increased by ten per cent to £888m.
Higher-than-expected demand for
variable annuities in the US and dou-
ble-digit sales in nine Asian markets
drove the growth, it said in its interim
management statement.
The results beat consensus market
expectations for £456m in new busi-
ness profit and sales revenues of
£854m. Jackson National, its US busi-
ness, saw revenues jump 26 per cent
to £322m in the quarter as retirees
snapped up more variable annuities.
“The retiring ‘baby boomers’ have a
strong appetite for protection,” chief
executive Tidjane Thiam said – but
admitted that the growth may have
to be reined in to prevent the busi-
ness from becoming too large.
“We will continue to closely moni-
tor developments in this market with
a clear focus on profitability rather
than market share,” he said.
Prudential’s Asia performance was
held back by India, where stringent
new regulation caused sales to fall 58
per cent and slowed the region’s sales
growth to just two per cent.
Excluding India, Asian sales were up
17 per cent, led by Singapore where
they rose 42 per cent. UK sales were
£199m, a three per cent rise on 2010.
Pru profits up
as US and Asia
demand soars
ONLINE gaming firm Sportingbet is in
advanced talks to buy Australian peer
Centrebet in a £117m all-share deal.
The British firm is considering a bid
of A$2 (60p) per share, although said
there was no certainty a transaction
would be completed.
Any purchase of Centrebet, which is
Australia’s fourth-largest online gam-
bling firm, would be dependent on
Sportingbet raising the funds to take it
over.
One option for Sportingbet could be
to sell about £125m of stock to fund
the offer, according to reports.
The firm, led by Andrew McIver, said
it expected the acquisition to add to its
earnings in the first full-year post inte-
gration.
The deal would also give the firm
greater exposure in Australia, diversi-
fying its geographical income from
regulated markets.
Family-owned Centrebet has been
searching for a buyer in recent
months, and said in March that it had
received a number of proposals from
interested bidders.
Sportingbet’s purchase would fol-
low UK-based rival Paddy Power in con-
solidating the Australian gambling
market, after the firm purchased a
controlling stake in Aussie peer
Sportsbet in the middle of last year.
Sportingbet in
talks to buy its
Australian rival
BY ALISON LOCK
INSURANCE

LEISURE

News
11 CITYA.M. 12 MAY 2011
ANALYSIS l Prudential
p
14Feb 9May 13Apr 24Mar 4Mar
780
760
740
720
700
680
660
765.00
11 May
ORIEL Securities is the adviser to
Sportingbet on its deal talks with
Australian online gambling peer
Centrebet.
Emma Griffin is leading the team of
advisers from the boutique firm, and is
joined by Jonathan Walker and Ashton
Clanfield on the deal.
Griffin is also leading Oriel’s advisory
work with DTZ, the real estate firm
currently fielding takover interest.
The reputation of Oriel Securities
has grown since it was established as a
boutique investment bank and broker-
age in 2002. In 2009, it completed the
£220m stock market float of Max
Property Group, and has worked on
several other equity raisings.
Advising Centrebet is Greenhill
Caliburn, the Australian division of Wall
Street investment bank Greenhill.
Bryan Pearson is leading the team
from Greenhill Caliburn. He joined the
firm in 2008 from CIBC World
Markets in London.
ADVISER: ORIEL SECURITIES
EMMA GRIFFIN
ORIEL
SECURITIES
Sportingbet chief Andrew McIver is in advanced talks to buy Aussie peer Centrebet
TROUBLED hedge fund RAB Capital
has said its days as a publicly quoted
company could be numbered.
The firm, once a pin-up for London’s
finance boom, said it had received
fresh redemption requests and that
one of its key fund managers is to
leave the company.
Gavin Wilson, co-manager of
RAB’s Energy and Octane
funds, will leave the firm for
personal reasons, meaning
investors are likely to pull out
of his $250m Energy fund.
RAB, led by Charles Kirwan-
Taylor (pictured), said the
developments meant it
would consider whether
to delist from its place on
the AIM market.
The beleaguered company had
already said it stands to lose $400m
(£245m) of cash from its $500m flag-
ship Special Situations fund in
October.
Investors had sought to withdraw
the money at the height of the
financial crisis, although
agreed with management to
lock the funds in until the
end of 2011.
A series of ill-fated invest-
ments, including a stake in
Northern Rock, made RAB
one of the biggest hedge
fund casualties of the crash.
Assets under management
at the firm stood at $1.06bn
at the end of last year,
compared to $7bn at
the end of 2007.
Outflows put
pressure on
RAB to delist
BY RICHARD PARTINGTON
HEDGE FUNDS

News
12 CITYA.M. 12 MAY 2011
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ANALYSIS l RABCapital p
Jan2007 Jan2008 Jan2009 Jan 2010 Jan2011 6 20 40 60 80 100 120
ANALYSIS l RAB Capital
p

Jan2007 Jan2008 Jan2009 Jan 2010 Jan2011
6
20
40
60
80
100
120
Rathbones breaks £16bn
assets under management
WEALTH manager Rathbone Brothers
has increased its assets under manage-
ment (AUM) to more than £16bn for
the first time.
The historic fund house said its asset
pool had hit £16.04bn in the first three
months of this year, up 2.6 per cent
from the £15.6bn it held at the end of
2010.
The increase compares to a 1.8 per
cent increase in the FTSE 100 Index for
the same period, as markets struggle
through a difficult period for share
trading.
Rathbones’ investment manage-
ment net operating income hit
£33.9m in the first-quarter, up 12.3 per
cent on a year earlier.
Net interest and other income for
the firm fell to £2.6m in the three
months to 31 March, down 3.7 per
cent on the same period in 2010.
Chairman Mark Powell said:
“Despite a particularly uncertain eco-
nomic environment, Rathbones has
achieved excellent growth.”
ASSET MANAGEMENT

20 July 2007: RAB’s share price hits an
all-time high of 125p per share.
August 2007: Banks become wary of lending to one another due to market fears over
exposure to the high-risk US “sub prime” mortgage market.
September 2007: Customers stage a run on Northern Rock. RAB, which held a
8.18 per cent stake in the lender, suffers as a consequence.
18 February 2008: Labour chancellor Alistair
Darling nationalises Northern Rock.
11 September 2008: RAB locks investors in its
Special Situations fund in for three years.
12 November 2008: RAB’s share price hits an
all-time low of 6.5p per share.
21 January 2009: RAB reveals a $5.3bn plunge in
assets under management over 2008.
6 April 2011: RAB says
investors will seek to
withdraw almost
$400m from its $500m
Special Situations fund
when the gate is opened
on it in October.
INNOVATION was the theme for
BSkyB chief executive Jeremy
Darroch at the Institute of Directors’
convention yesterday, where fellow
speakers included McDonald’s chief
executive Jill McDonald, chancellor
George Osborne and shadow chan-
cellor Ed Balls.
“The most successful businesses are
those that constantly seek to adapt
and renew themselves,” said Darroch,
as he charted the broadcaster’s jour-
ney from its birth in 1989, when air-
time on the UK’s four TV channels
was so limited only half an England
international game could be shown to
make space for Neighbours.
“We need to make our products
obsolete before someone else does,”
he added. “Believe me, one phone-
call to cancel a subscription is a hell
of a motivator.”
However, the most interesting part
of Darroch’s speech was what he did-
n’t say. As the full takeover of BSkyB
by Rupert Murdoch’s News Corp
moves into the end game, there was
absolutely no mention of the multi-
billion-pound deal, possibly the
largest-ever elephant to sit in the cor-
ner of the O2 Arena.
Instead, Darroch settled for lavish-
ing praise on BSkyB’s biggest share-
holder, which has stuck with the
broadcaster even though at one point
it was losing £14m per week, almost
“taking News Corp to the wall in the
process”, recalled Darroch.
“News Corp bet the farm on BSkyB;
it believed in it and provided an
incredibly powerful continuity for the
business,” he gushed. “There was no
greater supporter of our move into
HD, because they could see the long-
term benefit of the strategy.”
FIRST PAST THE POST
MEANWHILE, Lord MacLaurin, the
former chairman of Tesco, Vodafone
and the England and Wales Cricket
Board, also declared himself “pro-
Murdoch” – despite initial misgiv-
ings when BSkyB paid £300m to take
live England home Test
matches off terrestri-
al television.
“He is an inno-
vator,” echoed
MacLaurin. “And
this world needs
i n n o v a t o r s ,
whether you are
selling baked
beans or broad-
casting.”
So what is the
secret of successful
retailing? “Listening
to customers,” said
Ma c L a ur i n.
That, and
a v o i d -
ing “Gerald Ratner-like” comments
such as the remark made by Lord
Sainsbury that the Club Card was
just an “electronic version of Green
Shield stamps” before launching his
own, unsuccessful, version.
“I am forever grateful to Sainsbury,”
said MacLaurin. “He launched his
first loyalty card 18 months later than
Tesco and then had to close it.”
MacLaurin also hit back at the
claim made in yesterday’s Capitalist
column by Robin Brown, chief
accountant at Morrisons, that: “We
don’t sense that our competitors
are making money from their
online businesses.”
“I don’t know where [Brown] got his
facts from,” responded MacLaurin,
pointing out that Tesco was the first
into the online market with Tesco
Direct, which did in fact start to make
money from the late 1990s. When he
was in charge, naturally.
FIT FOR PURPOSE
HOWEVER, MacLaurin is showing
no sign of slowing down as he works
through his eighth decade. “I am
feeling quite fit and well thank
you,” he told the IoD’s chief operat-
ing officer Andrew Main-Wilson,
who remarked how “active” he is.
In fact, the retirement age of 65 is
officially “over”, said the 73-year-old.
“If you are fit and well you can go on
for another ten years. Get on the
phone to a headhunter and find
something that suits you.”
In MacLaurin’s case, that means
fitting in two non-executive director-
ships, lecturing the MBA students at
Bath University and chairing his for-
mer school Malvern College between
appearances in the House of Lords.
Taking on the turnaround chal-
lenge of one more struggling public
company – having taken Vodafone
from a £3bn to a £30bn turnover busi-
ness within two years – is out,
though. “My wife Paula would have
something to say about that,” he said.
SHOW TUNES
WHOEVER chose the music at the
convention had a sense of humour –
the TUC general secretary Brendan
Barber (left) came on stage to
Children of the Revolution, while
MacLaurin entered to the sound of
the Test Match theme tune.
And for Jeremy Darroch, as News
Corp’s newspaper business is inves-
tigated following alle-
gations of phone
hacking at its
tabloids?
Paparazzi
by Lady Gaga.
RADIO SILENCE BY SKY
BOSS ON MURDOCH BID
All change: BSkyB CEO Jeremy Darroch
13 EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
The Capitalist
CITYA.M. 12 MAY 2011
Left to right: Shadow chancellor Ed Balls, McDonald’s CEO Jill McDonald, Chancellor George Osborne Pictures: Micha Theiner/City A.M.
Pace-maker: Lord MacLaurin of Knebworth
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News
15 CITYA.M. 12 MAY 2011
BRITISH energy services firm John
Wood Group has shrugged off delays
to projects and the impact of a tax
hike in the North Sea, and said it is
on track to meet full-year expecta-
tions.
Wood Group said yesterday that it
saw good growth in the first four
months of the year, boosted by strong
demand for its services from the US
shale gas industry.
The company, which rejoined the
FTSE 100 in March, said the number
of projects to design and build facili-
ties to extract oil and gas was rising.
But it added that some projects
were still seeing delays.
Project activity in the North Sea to
date had been healthy, said Wood
Group, adding that contracts could
be delayed as companies reassess cer-
tain oil and gas fields after the gov-
ernment raised taxes in March.
Wood Group, which also provides
maintenance services to oil facilities
and power plants, said it had recently
suspended work on a $20m (£12.2m)
project off the coast of Libya because
of ongoing unrest in the country.
Shares in the Group fell 0.7 per
cent to close 5p down at 675p, in line
with an overall fall in the FTSE 100
Index.
Wood Group gets boost from US shale
IN PARTNERSHIP WITH
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BRAZIL’S energy regulator ANP said
yesterday it has approved BP’s pur-
chase of assets from US-based Devon, a
deal that was slowed by its massive
Gulf of Mexico oil spill.
The approval comes after BP sold
assets around the world to help pay for
the effects of the oil spill at the
Macondo well, which delayed approval
of its 2010 purchase of Brazilian assets.
“After leading the process of con-
taining the Gulf of Mexico spill ... BP
has shown itself today to be one of the
most prepared companies in terms of
operational security in deep waters,”
the ANP said in a statement.
In March 2010 BP agreed to pay
$7bn (£4.28bn) for Devon assets in
Brazil, Azerbaijan and the Gulf of
Mexico. The ANP held up approval for
the Brazil purchase after the Macondo
accident because it wanted to see how
BP would respond to the incident.
The company said in October it
agreed to sell oil and gas fields in
Vietnam and Venezuela to its Russian
joint venture TNK-BP for $1.8bn, and in
November said it was selling its stake
in Argentine oil and gas group Pan
American Energy.
Brazil allows BP purchase
BY HARRY BANKS
ENERGY

WARMER weather and fewer cus-
tomers in some German regions
curbed first-quarter sales at E.ON’s gas
unit compared with a year earlier, the
utility said yesterday.
As the German gas market leader,
E.ON’s activities are a benchmark for
the health of central European gas
markets.
Its Global Gas division sold 244.6bn
kilowatt hours of gas in the three
months to March compared with
252.4bn kWh in the same 2010 period,
according to its quarterly report.
E.ON’s German sales, which
accounted for 55 per cent of the total,
reported 13bn kWh lower gas sales,
due mainly to “customers losses and
weather related influences”.
National German gas consumption
last year rose 4.2 per cent to 942.3bn
kilowatt hours.
E.ON’s Global Gas division categoris-
es sales via its own regional firms and
those to industry and distributors in
Germany, Europe’s biggest single gas
market, and in Hungary.
It also holds responsibility for pro-
curement, storage and transport of
pipeline and liquefied natural gas.
The unit’s earnings before interest,
tax, depreciation and amortisation fell
by 83 per cent to €138m (£120m) in the
three months due to margin pressure
in the wholesale sector.
E.ON sales
hit by fall in
customers
STATE-OWNED China Guangdong
Nuclear Power (CGNPC) is studying
whether to come back in three
months with a fresh bid for uranium
miner Kalahari Minerals, after with-
drawing an offer following opposition
from UK regulators.
“Our business department is studying
it. We don’t have a result yet,” said a
CGNPC spokesman.
CGNPC had withdrawn its bid for
Kalahari after the Takeover Panel said
it would not allow the Chinese compa-
ny to lower its £756m offer. CGNPC
hoped to cut its bid in light of uncer-
tainty in the uranium industry follow-
ing Japan’s nuclear problems.
Shares in Kalahari and its 43 per
cent-owned Australian-listed Extract
Resources fell on the decision,
although some analysts said they
expected CGNPC could return with a
fresh offer in the next three to six
months or bid directly for Extract.
“We think there is a reasonable
chance CGNPC will make a new bid
for Kalahari after three to six months
have elapsed, or CGNPC may be more
direct and make a bid for Extract,”
RBC analyst Adam Schatzker said.
CGNPC must wait three months
before returning with a revised bid
under UK regulations.
State-owned CGNPC made an infor-
mal move on Kalahari in March.
CGNPC may
relaunch bid
for Kalahari
DRAX, the operator of the UK’s
largest coal-fired power station, said
trading conditions in commodity
markets had improved this year,
three months after it said rising
coal prices could hurt the firm’s
margins.
Drax, whose coal-fired power sta-
tion in North Yorkshire supplies
about seven per cent of the UK’s
electricity, however, warned that
markets remained volatile and that
it remained “cautious” in its out-
look.
In February, chief executive
Dorothy Thompson said the outlook
was “difficult”, after coal prices
started to increase towards the end
of last year.
Shares in Drax closed 0.2 per cent
up, climbing 0.8p to finish at 457.6p
yesterday.
Trading improves at Drax
ENERGY

BP chief executive Bob Dudley has won approval for plans in Brazil Picture: REUTERS
BY HARRY BANKS
M&A

BY HARRY BANKS
ENERGY

BY HARRY BANKS
ENERGY

ANALYSIS l Kalahari Minerals
p
14Feb 9May 13Apr 24Mar 4Mar
320
300
280
260
240
220
200
223.00
11 May
ANALYSIS l E.ON

2Mar 22Mar 11 Apr 29Apr
25.0
24.0
23.0
22.0
21.0
21.45
11 May
ITV slumped to its lowest price since
January during trading yesterday after
spooking investors with a gloomy out-
look for the advertising market.
The drop was despite robust figures
from ITV’s first-quarter, which saw
group revenues rise 11 per cent to
£500m. ITV television advertising
jumped 12 per cent, beating the over-
all market increase of 10 per cent.
However, advertising could slump
by up to a fifth in June on tough com-
parisons, due in part to last year’s foot-
ball World Cup, and persistently tough
market conditions, the firm warned.
This could result in first-half ad rev-
enues growing by just one per cent
despite the bright first-quarter.
ITV shares hit a three year closing
high of 93p in March after it
announced its full-year 2010 profits
trebled to £321m, with ad revenue
surging back 16 per cent to £1.5bn.
Yesterday shares closed 5.3 per cent
lower at 71.9p.
Chief executive Adam Crozier once
again stressed his plan to reduce ITV’s
reliance on volatile TV advertising.
BRITISH housebuilders Barratt and
Bovis Homes both said they expected
to report a rise in profit after a pick-up
in sales, although activity will remain
limited by tight mortgage availability.
Barratt Developments, Britain’s
largest housebuilder by volume, said
yesterday sales rates returned to nor-
mal levels from 1 January to 8 May,
with private selling prices up four per
cent, driven by a move to houses from
apartments.
Smaller rival Bovis, which also post-
ed a trading update, said the market
had remained stable, with visitor
numbers up 20 per cent and sales
rates up marginally.
Barratt said it was comfortable with
market estimates of around £130m
for full-year operating profit, com-
pared with the £90m it posted for
2009-10.
“We are encouraged by the
improvement in market conditions
we've seen since the start of 2011” said
Mark Clare (right),
group chief execu-
tive of Barratt.
Bovis also said
it expected its
profit to
increase in
2011 due to a
15 per cent
increase in
site num-
bers and
b e t t e r
prices.
UK housebuilders lifted by a rise
in profits as market improves
BRITISH transport operator
FirstGroup has said it will not take
up the option to extend its First
Great Western franchise for three
years beyond 2013 so it can bid for a
longer-term deal.
“We have made the commercial
decision not to take up the option to
extend the First Great Western fran-
chise for a further three years,”
FirstGroup’s chief executive Tim
O'Toole said yesterday.
“With our unique knowledge of
the franchise we believe we are best
placed to manage these projects and
capture the benefits through a
longer-term franchise.”
The company said it would contin-
ue to operate its key franchise, which
runs into central London from Wales
and the west of England, until
March 2013.
The bus and rail operator , which
has a work force of 130,000 employ-
ees, reported pre-tax profit for the
fiscal year fell 27 per cent to
£127.2m from £175.3m a year earli-
er, even though revenue edged up
2.7 per cent to £6.43bn from
£6.26bn. Net profit fell to £103.2m
from £132.1m.
It increased the final divided by
7.1 per cent to 15p and said the out-
look was positive despite fragile con-
sumer confidence.
“Looking ahead the economic out-
look remains uncertain,” said
O’Toole. “But the group has good
prospects in all of its key markets to
continue to deliver long-term value
for shareholders,” he said.
Shares in FirstGroup, which have
risen eight per cent in the last
month, closed up 2.2 per cent at
351.8p yesterday, valuing the compa-
ny at around £1.6bn.
FirstGroup holds out for
long-term train contract
TRANSPORT

ITV slumps
after gloomy
ad forecast
BY STEVE DINNEEN
MEDIA

BY HARRY BANKS
PROPERTY

NEWS | IN BRIEF
Wragge & Co on the rebound as income rises 16pc
Law firm Wragge & Co has reported a 16 per cent rise in tun-
rover for the year ending 30 April, with income hitting £112m
compared to last year’s £96.2m. The firm has not yet released
details of its profits per equity partner, but says figures should
match the increase in turnover. “In terms of economic condi-
tions, the past couple of years have been the toughest I have
experienced,” said managing partner Ian Poole. “Rather than
batten down the hatches, we made a number of strategic
investments – adding some excellent new people, deepening
our sector focus and increasing our international footprint.
Although conditions continue to be challenging, these deci-
sions are paying off.”
Bowleven finds oil in Cameroon
British oil explorer Bowleven said it found more oil at a key
exploration well off the coast of Cameroon and increased its
oil-in place estimates, sending its shares up two per cent. The
Africa-focused company said most of the hydrocarbon-bear-
ing targets were found in the lower and deep regions of the
Omicron part of the Sapele-1 well. It increased its oil-in-place
estimates for a section of the Deep Omicron to 65-430m bar-
rels. The well confirmed the presence of reservoir and hydro-
carbons in the offshore Douala Basin, extending the shallower
cretaceous play significantly offshore, the company said.
Bank of America focuses on mortgage problems
Bank of America is working to improve profits by reducing its
number of problem mortgages and cutting other expenses,
chief executive Brian Moynihan told shareholders yesterday.
Moynihan, speaking at the company’s annual meeting in
downtown Charlotte, said the mortgage business of the
largest US bank by assets is “still struggling mightily” as it
slowly crawls out from under billions in soured home loans.
“There’s still a lot of work ahead to get through this,”
Moynihan told shareholders. At the meeting, shareholders
elected all 13 director nominees onto the board of directors.
No shareholder proposal gained enough support to pass.
News
17 CITYA.M. 12 MAY 2011
CITY VIEWS: WOULD YOU SUPPORT THE CREATION OF A PRIVACY LAW?
Interviews by Richard Partington
GRAHAM WOODRUFF | AMERSHAM
MARILIZE OTTO | MITSUI SUMITOMO
DAVID CORRADINE | CATLIN
ANALYSIS l ITV
p
14Feb 9May 13Apr 24Mar 4Mar
95
90
85
80
75
70
71.90
11 May
ITV chief executive Adam Crozier wants to reduce his firm’s
reliance on core TV ad revenue.
“Whilst the recovery in television adver-
tising is clearly very helpful, it also serves
to remind us just how volatile this mar-
ket can be,” said Adam Crozier last
month, before the advertising warning.
BANK holiday travel has helped boost
Gatwick airport’s load factor to a
record 79.7 per cent high, as passen-
ger numbers jumped by more than
700,000 in April compared to the
same period last year.
Average load factors climbed 3.2
percentage points from last year, after
April 2010 numbers were hit by dis-
ruption from the ash cloud from
Icelandic volcano Eyjafjallajökull
which closed airspace above Gatwick
for almost six days.
Though an additional 702,500 pas-
sengers travelled from the airport in
April 2011, the number of people
unable to travel during the restric-
tions last year was approximately
600,000.
The most popular destination for
passengers getting away over the dou-
ble bank holiday period in April was
Malaga, boosted by British Airways
doubling its service to the southern
Spanish city after moving the route
back to Gatwick from Heathrow.
Bank holidays give boost
to Gatwick load factor
TRANSPORT

“No. I ignore it all anyway, but I don’t doubt that people are interested in the private lives
of celebrities. There are limits and the press does cross them at times. Any change would
have to look into the issues thoroughly. If the wronged person wants to talk then they
should be allowed. Celebrities have to accept the risks of being famous sometimes.”
“It depends, the public needs to be aware. If anything, the current laws make it easier
for people to get away with things. Twitter has made a mockery of superinjunctions. It
shouldn’t be controlled, even though it’s like any other media platform. There should be
some restrictions but we should also be allowed freedom of expression.”
“Yes. It should be changed, though to make it easier for things to be made public.
Superinjunctions seem to be exclusively for the wealthy. Twitter makes it pointless to cover
these things up. It should be brought in line with other media but all types should be made
quite open. It’s the freedom of the press.”
TESCO yesterday announced that Sir
Richard Broadbent will become its
next chairman.
Sir Richard (pictured), who is deputy
chairman at Barclays, will join Tesco as
a non-executive director in July.
He will take over the reins from
Tesco chairman David Reid, who
retires in November.
The City grandee was tipped to take
over at insurer Aviva before opting to
take up the challenge at Tesco.
The chairman-elect described Tesco
as an “innovative and growing global
business”. “I look forward to working
with a great team and playing my part
in helping guide Tesco to further suc-
cess in the future,” said
Sir Richard.
The 58-year-old,
who is in his
third term at
Barclays after
joining the
board in 2003,
would also have
been a strong can-
didate to take over
as chairman of the
bank.
He began his
career at the
Treasury
in 1975
a f t e r
studying at the University of London
and the University of Manchester.
He went to Schroders in 1986 and
rose to head of corporate finance,
working closely with Sir Win Bischoff,
who was then chairman.
In 2000, under then Prime Minister
Tony Blair, he was the first non-civil
servant to serve as permanent secre-
tary of customs and excise.
Reid first joined the board of Tesco
in 1985 and has been chairman since
March 2004.
He has also held the roles of finance
director and executive deputy chair-
man during his career at the retailer.
Tesco, which has more than 5,000
stores in 14 countries, posted a 14 per
cent rise in net profit last year.
Reid, who became chairman of the
supermarket in 2004 and has served
on the Tesco board since 1985 in an
executive role, said: “I am sure that
with Richard’s wide expertise, his
board experience and his personal
qualities he will contribute greatly to
the future growth of the group. Good
management succession is very impor-
tant to Tesco and this appointment is
the result of a thorough process led by
Patrick Cescau and endorsed by all
members of the board.”
The move completes an all-new
line-up at the top of Tesco.
Phil Clarke replaced Sir
Terry Leahy as chief
executive earlier this
year.
DANISH brewer Carlsberg yesterday
said a recovery in east European
demand helped drive a 38 per cent
rise in first-quarter profits, endorsing
its emerging market focus and send-
ing its shares to a near-record high.
The brewer met forecasts yesterday
as its biggest market returned to
growth and said it expected Russian
beer volume to grow between two
and four per cent this year.
“We see that the Russian economy
and the Russian consumer is doing
better and better, and that is positive
for our business,” chief executive
Jorgen Buhl Rasmussen said.
“From mid-2010 we started to see
an improvement in the Russian econ-
omy. The Russian consumer is doing
better and is more ready to spend
again,” Rasmussen added.
Carlsberg’s B shares gained 2.6 per
cent yesterday to close at 608 Danish
crowns.
Carlsberg toasts a swing back to
Russian growth as profit jumps
CONSUMER

RESTAURANT Group yesterday said
its total sales for the first 18 weeks of
the new financial year grew 5.5 per
cent, but warned of tough market
conditions ahead due to fragile con-
sumer confidence.
The company, which owns the
Garfunkel’s and Frankie & Benny’s
chains, said yesterday sales of restau-
rants open for at least a year were
0.5 per cent ahead, while margins
remained broadly in line with its
expectations.
“Trading conditions during 2011
look set to continue to be similarly
challenging to those we experienced
during 2010, with consumer senti-
ment remaining cautious and
household inflation and disposable
income still under pressure,” chair-
man Alan Jackson said in a state-
ment.
Restaurant Group shares, which
have gained 20 per cent of their
value since the beginning of the
year, closed 7.8 per cent lower yester-
day at 303.3p.
Analysts at Liberum Capital said
the company may have to look to
new sites to deliver earnings per
share for investors. The group
expects to open between 22 and 27
new sites this year.
Greg Feehely at Altium said of the
share-price fall-off: “We would view
this as an opportunity to add to
holdings in a quality self-funded
operator with a decent dividend
yield and a fast-falling level of debt.”
Restaurant Group in sales lift
BY HARRY BANKS
CONSUMER

Tesco names
City grandee
as new chair
BY JOHN DUNNE
RETAIL

Consumer News
18 CITYA.M. 12 MAY 2011
POSH GOODS BOOST SALES AT HERMES
FRENCH luxury goods group Hermes has posted a 20.7 per cent rise in first-quarter sales
at constant exchange rates, driven by surging demand for its watches and leather goods
in Europe and Asia. Overall, Hermes sales in the three months to 31 March rose 25.5 per
cent to €637.1m (£541m). The maker of silk scarves and €10,000 crocodile leather hand-
bags said sales in Japan, its biggest foreign market, were flat and reiterated its forecast
for full-year sales growth of eight to ten per cent. Picture: REX
NEWS | IN BRIEF
Morrisons FD gets £1.25m bonus
Supermarket chain Morrisons gave
finance director Richard Pennycook a
£1.25m bonus in shares last year
according to its annual report.
Pennycook was one of the contenders
for the chief executive job when Marc
Bolland left the company for Marks &
Spencer, but he lost out to Dalton
Philips. He was paid £981,000 for 2010
before the bonus.
Kesa cuts as Comet struggles
Electricals retailer Kesa yesterday
posted a further plunge in sales at its
loss-making Comet unit in the UK and
said it would accelerate change at the
chain in an attempt to revive its for-
tunes. Kesa, the subject of private equi-
ty bid speculation amid stake-building
by activist investor Knight, said it
would meet market expectations for
2010-11 profit, reduced after a
January profit warning. It confirmed
that costs would be cut. Kesa blamed
weak consumer demand for Comet's
woes particularly following January's
increase in VAT sales tax, and said it
was planning for the unit's like-for-like
sales to be negative in 2011-12. “The
UK is the toughest market, in my view,
in Europe as we speak. Not only in
terms of macro environment... but also
in terms of electrical retail,” Kesa said.
Greggs gets a boost over Easter
High street baker Greggs said like-for-like
sales growth of 0.8 per cent over the past
18 weeks “reflected good Easter trading
and the favourable weather”. Chief execu-
tive Ken McMeikan said that having suc-
cessfully targeted the UK breakfast
market in 2010 with meal deals combin-
ing sausage or bacon rolls with tea and
coffee, the firm has identified healthy
foods as an area to drive growth. The
company plans to sell salads, fruit and
pasta alongside its traditional sausage
rolls, pasties and doughnuts as it eyes a
slice of the healthy eating market. "We
think there is still more opportunity for
Greggs around the healthier market,
things like side salad pots, fresh fruit pots,
pasta pots and yoghurts,” he said.
headline sponsor champagne reception sponsor
official venue partner sponsors
What will you say?
Enter the City A.M. Awards 2011 and you could be
recognised as one of the City’s great personalities
or companies of the year.
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or for more information, please contact Jo Pead:
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“ Recognition for this campaign is marvellous.
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Aviva (Business Marketing Campaign of the Year)
TOYOTA Motors posted a 52 per cent
fall in quarterly operating profit yes-
terday and gave no annual forecasts, as
expected, as it struggles to measure
the scope of the disruption to produc-
tion after the 11 March earthquake.
The world’s biggest automaker is
facing another tough year as a severe
shortage of parts caused by Japan’s
biggest earthquake on record ham-
mers production just as it was putting
its recall woes behind it.
Toyota has said it expects to return
to full production by November or
December from less than half of
planned volumes now, but has
stopped short of specifying how fast it
would get there. It denied reports that
normal production would come two
to three months earlier than planned.
Toyota said its January-March oper-
ating profit was 46.1bn yen ($570 mil-
lion), compared with an average esti-
mate of 94.6bn yen from 17 analysts
who revised their numbers after the
quake.
Fourth-quarter net profit, which
includes earnings made in China, fell
77 per cent to 25.4bn yen.
Among Japan’s top car makers,
Toyota is most exposed to disruption,
making 38 per cent of its cars at home
compared to 25 per cent for Honda
Motor and Nissan Motor.
Koichi Ogawa, chief portfolio man-
ager at Daiwa Investments, said: “The
focus going ahead for Toyota is what it
expects its forecast to be and right now
it is very unclear, especially if it can
only can operate at 50 per cent capaci-
ty between April and June, which will
make it hard for it to lift profits.”
“I expect (profits) to recover in the
second half and to grow next year, but
Toyota needs to rethink its global pro-
duction strategy in the mid-term.”
Toyota hit by
supply doubts
BY HARRY BANKS
AUTOMOTIVE

WORLD number one steelmaker
ArcelorMittal predicted a post-crisis
high for profits in the second quar-
ter, helped by strong US demand
after a sharp rebound at the start of
the year.
The maker of six to seven per cent
of the world’s steel met first-quarter
earnings forecasts yesterday as
prices caught up with a spike in iron
ore and coking coal costs.
The Luxembourg-based group said
it expected global steel consump-
tion would grow 6.5 to seven per
cent this year, with the strongest
growth of up to 10 per cent in North
America.
ArcelorMittal said second-quarter
core profit should be $3-$3.5bn (£1.8-
£2.1bn), the highest level since third
quarter of 2008, just before the glob-
al steel sector went into freefall.
ArcelorMittal lifted by demand in
US as revenue hits pre-crisis levels
MINING

DANISH shipping group AP Moller-
Maersk reported first-quarter net
profit at the top end of expectations
yesterday, helped by higher than
expected freight rates and oil prices.
The owner of Maersk Line, the
world’s biggest container shipping
firm, reiterated that 2011 earnings
would be lower than 2010 and also
repeated guidance for a “satisfactory”
result in the container shipping busi-
ness, also lower than last year.
First-quarter pre-tax profit was
$2.753bn (£1.69bn), up 53 per cent on
the same quarter a year ago.
“We are convinced that we will
deliver a very good result again in
2011 even though we expect it to be
below the result of 2010,” chief execu-
tive Nils Smedegaard Andersen said.
“We are really pleased with the
(first-quarter) result, but we also
realise that this is one quarter, and
we will be struggling with a lot of
challenges during the rest of the year,
including lower rates,” Andersen said.
Maersk, whose fleet carries 15 per
cent of all seaborne containers and is
seen as a barometer of global trade,
kept a forecast for 2011 container
shipping demand to grow by between
six and eight per cent.
Moller-Maersk boosted by oil
prices as profits top forecasts
BY HARRY BANKS
SHIPPING

News
19 CITYA.M. 12 MAY 2011
ANALYSIS l Maersk 2011 first quarter results
TANKERS AND OTHER SHIPPING:
Profit: $213m
($115m Q1 2010)
Pre-tax profits of
$2.753bn
( 53 per cent)
Revenue:
$14.48bn
10 per cent
Average freight rate
per 40 foot container:
$2,908
2 per cent
TERMINAL DIVISION:
Profit: $139m
($114m in Q1 2010)
OIL & GAS DIVISION:
Profit: $512m
($450m in Q1 2010)
OIL OIL OIL OIL OIL OIL OIL OIL OIL
CONTAINER DIVISION:
Profit: $438m
($169m in Q1 2010)
News
20 CITYA.M. 12 MAY 2011
King & Spalding
Suzanne Rab, a competition lawyer
with expertise in cartel, market and
merger control investigations in
Europe and the UK, has joined King &
Spalding as a partner in its London
office. Rab joins from Hogan Lovells,
where she was co-leader of the firm’s
antitrust compliance group.
Irwin Mitchell
The law firm has appointed Sue Wilson
as a property litigation consultant in its
London office. Wilson was previously a
partner in the property litigation team
at Lawrence Graham.
Essence Digital
Digital media agency Essence, which
has secured billings of £90m this year
from clients including Google, eBay and
Expedia, has appointed Mark
Nancarrow, the former chief executive
of Egg, as chief financial officer.
Dundas & Wilson
The law firm has promoted four sen-
ior associates to its partnership. The
associates are technology and com-
mercial advisory senior associate Alan
Nelson, property finance senior asso-
ciate Darren Craig, real estate senior
associate Shane Toal and commercial
dispute resolution senior associate
Gemma Lampert.
SWIP
Scottish Widows Investment
Partnership has appointed Nick Thiem
as head of discretionary sales in the
SWIP wholesale distribution team.
Thiem joins from Gartmore, where he
was discretionary account director.
State Street Corporation
The financial services provider has
appointed Craig Butterworth to head of
fixed income sales for EMEA. He joins
from RBS, where he held the position of
managing director, head of flow rates
sales, UK funds and hedge funds.
Espírito Santo Investment Bank
Andrew Lim has been hired as an ana-
lyst in the banking team. Lim joins from
Matrix Corporate Capital, where he led
the European banks team.
CITY MOVES | WHO’S SWITCHING JOBS Edited by Harriet Dennys
BNY Mellon
BNY Mellon has appointed Arthur Certosimo as
chief executive of global markets to lead the
bank’s foreign exchange, capital markets and
derivatives trading businesses worldwide.
Certosimo, currently chief executive of alterna-
tive, broker-dealer and Treasury services, will
succeed Richard Mahoney, who will retire at the
end of June. Brian Ruane, currently head of
alternative investment services, will become
CEO of alternative and broker-dealer services.
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
Commodities lead
Wall Street down
U
S stocks almost erased a three-
day rally yesterday as energy and
commodity shares sank, feeding
worries over the market’s ability
to stay on an upward path.
The second major breakdown in
commodities in a week fuelled selling
in other risky assets, including stocks.
A stronger dollar and data showing a
rise in US fuel supplies sent crude oil
prices down more than five per cent,
and the Standard & Poor’s energy
index slid three per cent.
“A lot of money is tied up into
things like exchange-traded funds
and mutual funds that track a broad
array of stocks and not just commodi-
ties. Some of this could be a shift out
of equities in general, but especially
energy and commodities,” said
Bryant Evans, investment adviser and
portfolio manager at Cozad Asset
Management in Champaign, Illinois.
About five stocks fell for every one
that rose on the New York Stock
Exchange, a broad exodus signalling
investors saw little value in most
industries.
The Energy Select Sector SPDR
Fund fell 2.9 per cent to $74.28 while
the US oil fund lost 4.2 per cent to
$39.35 and the iShares silver
exchange-traded fund dropped 8.3
per cent at $34.39.
Worries about global demand have
fed losses in energy and materials
shares. The S&P energy sector is now
down 7.8 per cent since the start of
the month.
In a sign of weakness, the S&P 500
broke below 1,340, a key technical
level, and some analysts said a close
below 1,330 would be bearish for the
market.
The Dow Jones industrial average
was down 130.33 points, or 1.02 per
cent, at 12,630.03. The S&P 500 Index
was down 15.08 points, or 1.11 per
cent, at 1,342.08. The Nasdaq
Composite Index was down 26.83
points, or 0.93 per cent, at 2,845.06.
The 1,340 level roughly coincides
with the 20-day average, which the
market has closed above since April
20. If the S&P 500 closes below that
average, the Bollinger bands chart
shows a near-term target just above
1,300. The S&P 500 index is still up
27.9 per cent since the start of
September, roughly when the mar-
ket’s recent rally began.
After the market’s close, shares of
Cisco dipped 2.1 per cent to $17.40 as
the company reported results and
warned of another weak quarter.
In the foreign exchange market,
the euro dropped to a three-week low
against the dollar as investors
unwound risky trades in commodi-
ties and higher-yielding currencies
and bought back the greenback in a
flight to quality bid.
C
OMMODITY and banking
stocks dragged the FTSE 100
back below the 6,000 level yes-
terday, with these sectors pres-
sured by Greece’s debt problems and
uncertainty over global economic
growth.
London’s blue chip index closed
down 42.89 points, or 0.7 per cent, at
5,976.00, having hit a one-week clos-
ing high on Tuesday.
Atif Latif, director of trading at
Guardian Stockbrokers said: “Most of
the weakness is based on selling on
the back of more fiscal tightening
expected in China post CPI numbers
... coupled with chatter around
Greece, in particular that there is
still no consistent message coming
through from EU officials.”
Bank of England deputy governor
Charles Bean warned of the poten-
tial for messy consequences from
the Eurozone debt crisis that is cur-
rently centred around Greece.
He also said commodity price
volatility was very much on the
radar of the G20, as the Bank of
England raised its medium-term
inflation forecast.
Integrated oils and miners topped
the list of blue chip fallers, sliding in
tandem with commodity prices as
risk appetite faded.
Banks were also down. Global
heavyweight HSBC fell 1.5 per cent
after the publication of a strategic
review that followed Monday’s first-
quarter results.
Other stocks were down due to
them going ex-dividend. These
included BP, Inmarsat, Morrison
Supermarkets, Randgold Resources,
Rexam, Royal Dutch Shell, Sage,
Unilever and Whitbread.
The US trade deficit widened
more than expected in March, which
could prompt analysts to trim their
estimates of already weak first-quar-
ter US economic growth.
Wall Street was lower as the UK
market closed after Walt Disney’s
quarterly results missed expecta-
tions.
Richard Batty of Standard Life
Investments warned expectations
for profit growth for global corpo-
rates has peaked.
“While the Q1 2011 profits cycle
has been robust, with outcomes
ahead of initial expectations,
investors are rightly worried about
the outlook in view of policy head-
winds such as tighter fiscal and
monetary policy, plus a harsher reg-
ulatory environment. Indeed, expec-
tations for profit growth have been
moderating recently.”
Back among the blue chips, ITV
shed 5.3 per cent after the free-to-air
broadcaster said ad sales in May and
June will be down on a year ago,
prompting UBS to halve its full-year
advertising growth forecast to two
per cent.
On the upside, Burberry rose 2.7
per cent, after fellow luxury goods
companies Bulgari and Hermes post-
ed strong first-quarter sales.
Marks & Spencer added 0.8 per
cent after JPMorgan Cazenove’s
upgraded its recommendation and
price target for the retailer (see Best
of the Brokers, above).
Elsewhere, Reed Elsevier climbed
1.8 per cent after the Anglo-Dutch
publisher’s investor day on Tuesday,
which Credit Suisse said “marked a
significant turning point in the com-
pany’s communication strategy”.
Defensive stocks were also chased
higher by investors with power com-
pany International Power and drug-
maker Shire up 1.8 and 2.3 per cent
respectively.
Outside of the top flight, FTSE All-
Share property firm DTZ was the top
riser, gaining 21.9 per cent after it
revealed takeover interest from an
unnamed party.
FTSE 100 sinks below 6,000
as banks and miners tumble
THELONDON
REPORT
THENEW YORK
REPORT
7Feb 25Feb 17Mar 6Apr 28Apr
6,100
5,800
5,700
5,600
5,500
5,900
6,000
ANALYSIS l FTSE 5,976.00
11 May
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Reckitt Benckiser
3500
3400
3300
3200
3100
3000
2900
14Feb 4Mar 24Mar 13Apr 9May
p
3440.00
11 May
RECKITT BENCKISER
Goldman Sachs rates the consumer goods producer “buy” but has taken
the firm off its “conviction buy” list, and has cut its 12-month target price
by 160p to £41.70. The broker thinks the firm contains an increased execu-
tion risk following a change in management, though recent quarterly
results were encouraging. Goldman is still confident that Reckitt will out-
perform the wider consumer products market over the next year.
ANALYSIS l BG Group
1600
1550
1500
1450
1400
1350
14Feb 4Mar 24Mar 13Apr 9May
p 1367.00
11 May
BG GROUP
Credit Suisse rates the oil explorer “outperform” and has cut its target
price by 80p to £17.10. The broker was disappointed by the firm’s results on
Tuesday and has lowered its 2011 estimates by eight per cent to reflect
lower volume guidance and higher UK taxation. BG Group remains the bro-
ker’s core holding for long-term energy investors, though it now expects a
pause in the firm’s share price.
ANALYSIS l Marks & Spencer
400
390
380
370
360
350
340
330
320
14Feb 4Mar 24Mar 13Apr 9May
p
342.30
11 May
MARKS & SPENCER
JP Morgan Cazenove has upgraded the retailer from “underweight” to
“overweight” and has hiked its target price by 150p to 460p. The broker is
impressed by M&S’s proactive pricing strategy, and thinks its outperfor-
mance in the last year has until now been overshadowed by worries over
inflation. The current share price rise has been in line with peers, not yet
reflecting the self-propelled recovery story at the firm, JP Morgan adds.
AMERICAN exports set a record in
March, buoyed by the weak dollar and
strengthening global demand, it was
revealed yesterday.
Yet the country’s trade gap widened
further, as oil prices pushed up the
import bill by almost five per cent.
The US trade deficit grew to
$48.2bn (£29.2bn), its widest level
since June 2010.
“The level of exports has finally
returned to pre-recession levels,” said
Paul Dales of Capital Economics.
“But the surveys suggest that
imports will continue to grow at a
faster rate,” Dales added.
Imports grew 4.9 per cent to
$220.8bn as the average price for
imported oil hit $93.76 per barrel, the
highest level since September 2008.
Oil prices continued to rise in April,
but have receded in recent weeks back
to early March levels.
US exports grew 4.6 per cent in
March to $172.7bn, surpassing the
record set in July 2008 before world
trade took a sharp downturn. The
March export rise was the biggest
month-to-month gain in 17 years, the
Commerce Department said.
The dollar has fallen 5.2 per cent
against a basket of currencies since
the beginning of the year, boosting
prospects for exports.
A fresh two-and-a-half-year high was
recorded in American job openings,
which rose 99,000 to 3.12m, the high-
est since September 2008.
Meanwhile, the US government’s
budget deficit came in at $40.48bn for
April, roughly in line with expecta-
tions.
US trade gap
worsened by
high oil prices
INFLATION pressures in the Eurozone
are continuing to build, European
Central Bank (ECB) officials said yes-
terday.
The pace of inflation in the 17-
country bloc climbed to 2.8 per cent
last month, the highest since late
2008. Price pressures in the
Eurozone’s powerhouse economy,
Germany, came in at 2.7 per cent for
April in the pan-European har-
monised measure – a slight upward
revision from the first estimate of 2.6
per cent.
“Markets do currently anticipate a
gradual withdrawal of the monetary
accommodation. I personally think
that is no unreasonable assumption,
given the clear upside risks to price
stability,” Belgian central bank gover-
nor Luc Coene told a banking seminar.
And Juergen Stark, a senior ECB
official, warned against the assump-
tion that the central bank will not
hike rates next month.
The ECB failed to use the terms
“strong vigilance” and “heightened
alertness” in its statement last week –
code-words usually deployed to signal
an impending rate rise.
“Using code words does not mean a
commitment,” he added. “To main-
tain price stability in the medium
term is our overriding principle.”
BRENT crude slipped yesterday, partly
due to higher than expected inflation
in China, the world’s second-largest
oil user.
Chinese consumer price inflation
slipped in April, yet came in above
expectations at 5.3 per cent – rekin-
dling concern that Beijing’s efforts to
cool the economy would erode energy
demand.
China’s soaring trade surplus,
reaching $11.4bn (£6.97bn) in April,
had already stoked expectations of
upcoming monetary tightening.
“With CPI coming in higher than
expected again today, I think that
inflation concerns will continue to
plague risk appetite,” said a head trad-
er at Hong Kong-based broker.
Meanwhile, China’s industrial pro-
duction climbed 13.4 per cent year-on-
year in April, a slight slowdown from
March’s 14.8 per cent growth.
Eurozone chiefs
warn over fresh
price pressures
Higher inflation in China
sparks fear of rate hikes
Monetary tightening could squeeze China’s demand for petrol Picture: REUTERS
BY JULIAN HARRIS
US ECONOMY

EUROZONE ECONOMY

● US imports totalled $220.8bn in March.
● Exports rose, but remained more than £48bn
lower at $172.7bn for the month.
● The US government’s deficit was more than
$40bn last month.
FAST FACTS | AMERICAN ECONOMY
Economics
CITYA.M. 12 MAY 2011
BY JULIAN HARRIS
ASIAN ECONOMY

21
For chance to win this wonderful evening simply
answer the following question.
How many generations have Riedel been making glassware?
A) 10 B) 11 C) 12
send your answer and contact number to win@cityam.com
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A LIMITED NUMBER OF VIP GRAND CRU PASSES ARE AVAILABLE
WHICH INCLUDE:
●Entry for 2 plus £200 worth of Vinum XL glasses
●A signed Mamba decanter worth £375
●Complimentary glass of Champagne on arrival
●Reserved seating in the front part of the auditorium for the tasting
VIP Grand Cru Passes can still be bought for the 26 and 27 May for £395 if you aren’t
lucky enough to win. Standard Tickets are priced at £65 per person, to include £100
worth of Riedel glasses to take home, and a specially discounted ticket for 6 is
available at £325. For further details and to book tickets, please visit www.riedel.co.uk
May is National Wine Month and to celebrate, City AM and Riedel are
offering one lucky reader VIP Grand Cru Pass for Two to the Riedel
Masterclass at Vinopolis on Thursday 26 May. In a great night out, the win-
ner will enjoy a unique and fascinating tutored wine and glass tasting con-
ducted by Maximilian Riedel, 11th generation of the glassmaking family and
designer of some of the company’s most iconic wine glasses and decanters.
Maximilian will demonstrate the relationship between the shape of a glass and the
perception and enjoyment of wines. This tasting will also see the launch of the limited
edition Maximilian Riedel Signature Mamba decanter. Designed personally for 2011,
each decanter is individually hand-made by Riedel's most senior master-craftsmen and
carries the personal signature of Maximilian Riedel engraved on the base. This item
cannot be bought in retail stores and is exclusively available to those attending tast-
ings with Maximilian Riedel.
The tastings take place at Vinopolis, London’s premier wine venue, on Thursday 26
and Friday 27 May. Entry is from 6.00pm (when a bar will be available) and the tast-
ings will commence promptly at 7.00pm.
| PROMOTION
A PAIR OF VIP GRAND CRU
PASSES TO VINOPOLIS ON
THE 26TH MAY
Win
Speed past the old
institutions for rapid
promotion and career
progression
Picture: GETTY
Business Features| Careers
I
T SEEMS like people are becoming
successful faster these days. The
Forbes list of young CEO
billionaires is enough to make most
of us feel we should be getting richer,
quicker. But how do these young whip-
per-snappers get there so fast?
Iain Martin, the 43 year-old chief exec-
utive of the fast growing Moonpig.com
(see rankings right), thinks the route to
the top can be found in expanding com-
panies. “We have a culture we like to fos-
ter at Moonpig, so we prefer to recruit by
promotion from within,” he explains.
“The company employed someone to
answer the phones when Moonpig first
started, now she’s the marketing
director – that’s phenomenal career pro-
gression.” And that isn’t Martin’s only
example. His previous marketing man-
ager left to head up Moonpig’s
Australian office.
GAPS IN THE RECRUITMENT MARKET
Andy Bristow, a manager at the recruit-
ment consultant Hays, says the candi-
dates he speaks to are certainly
interested in being in a fast-growing
company, but few are willing to move if
the pay offered wasn’t competitive:
“Small companies are up against corpo-
rates for talent.”
Nick Stevens, a recruitment
consultant at the fast-growing firm
Eximius Group, adds that candidates are
often reluctant to consider lower posi-
tion and pay.
Martin says he accepted that he need-
ed to take a pay cut to get to where he
wanted to be. He joined Moonpig as a
commercial director, but for lower pay
than his previous job at Hallmark cards.
He became chief executive last year after
the founder moved on to become chair-
man.
CAREER PLANNING
“A lot of careers happen by accident,
things just sort of pop up, but my move
to Moonpig was entirely planned.”
Martin wanted to work for an entrepre-
neurial, digital business and progress
faster. “I wrote to Nick [the then chief
executive] and expressed my interest
when I was working at Hallmark.
Amazingly, he met with me despite not
having a job to offer. We stayed in touch
and a year later, he brought me in.”
LOOKING FOR INSPIRATION
Moving to Moonpig was the logical
choice for Martin since he had worked in
the card business. But where can the rest
of us look? We’ve listed London’s fast-
growing companies on the right to give
you some inspiration.
Climb the career
ladder faster in a
growing business
Sometimes taking a step down can
actually be a step up, says Donata Huggins
1. Your Golf Travel, a golf travel agency.
Annual sales growth 158.06 per cent.
2. Pathology Group, recruitment consultancy.
Annual sales growth 151.89 per cent.
3. Power Perfector, energy device distributor.
Annual sales growth 140.01 per cent.
4. Moonpig.com, online greeting card retailer.
Annual sales growth 115.51 per cent.
5. Green Park, recruitment consultancy.
Annual sales growth 112.62 per cent.
6. BullionVault.com, gold dealer. Annual sales
growth 105.87 per cent.
7. Miroma, media barter company. Annual
sales growth 95.55 per cent.
8. Fjoed, digital design consultancy. Annual
sales growth 89.50 per cent.
9. Ship Shape Resources, construction servic-
es. Annual sales growth 89.21 per cent.
10. Natural Products, giftware designer.
Annual sales growth 83.51 per cent.
Source: The Sunday Times Fast Track 100
LONDON’S FASTEST GROWING
PRIVATE COMPANIES BY SALES
And even if it doesn’t, this book affirms that the nice guy doesn’t always finish last, says Donata Huggins
Turn that frown upside.... it could make you money
THE POWER OF NICE
BY LINDA KAPLAN THALER
AND ROBIN KOVAL
Random House, £7.99
hhhii
W
HILE it is laughable
to read a Donald
Trump quote on the
front cover of a book
called The Power of Nice, one
should not write it off straight-
away.
This charming book is just badly market-
ed – ironic considering that was written by
the chief executive and president of an
advertising agency. The book consists of
119 pages of delightful anecdotes and psy-
chological research, hoping to
demonstrate that being nice is a viable
strategy for career success.
While to avoid disappointment you
should view the book as
Chicken Soup for the Business
Soul, it does offer some inter-
esting research findings on cor-
porate behaviour. The authors
cite evidence such as
correlations between
employee morale and
company bottom lines to
support their view that the
nice guy doesn’t always fin-
ish last. For every 2 per cent
increase in “service climate” –
that is general cheerfulness
and helpfulness as measured
in your staff (god knows how
they do that) – the book claims
that companies experience a 1
per cent increase in revenue.
Another study found that
physicians who had never been
sued spoke to their patients
for an average of three min-
utes longer than physicians
who had been sued twice or more. The con-
clusion: it pays to be nice.
The authors reveal a hand-
ful of “nice” financial celebs.
Warren Buffett apparently
never fires anyone, but tries to
move struggling
employees into
more suitable
roles.
The book
would benefit
from being re-
branded as
s omet hi ng
closer to
the Clinton
Effect, tap-
ping into the
well-known
notion that
you can
charm your
way to suc-
cess. They touch on this, retelling the anec-
dote about Bill Clinton sailing to the UK for
his Rhodes scholarship, shaking everyone
on board’s hand only to explain that he
wanted to be president one day and would
need a lot of friends.
Sadly, much of the book points out the
obvious: people respond well to kindness
and often later repay the favour. Whereas
other parts touch on topics that are better
explained elsewhere. For those interested
in the topic, but keen to read more in-
depth analysis, Working with Emotional
Intelligence by Professor Daniel Goleman
is a more worthwhile read.
While most who would be interested in
this book will probably find it a pleasant
affirmation of their existing views, the
poor marketing probably means that the
office tyrants that need it will have no
interest. Perhaps this is one to buy and
leave on the desk. Maybe the Donald
Trump quote on the front will tempt such
grisly characters into its pages.
1. Power Perfector, energy-saving device dis-
tributor. Annual profit growth 157.45 per cent.
2. Moonpig.com, online greeting card retail-
er. Annual profit growth 149.79 per cent.
3. Liquid Capital, financial services provider.
Annual profit growth 142.24 per cent.
4. UPP, university accomodation provider.
Annual profit growth 125.01 per cent.
5. Charles Tyrwhitt Shirts, shirtmaker.
Annual profit growth 105.54 per cent.
6. Cath Kidston, lifestyle retailer. Annual
profit growth 91.16 per cent.
7. Skrill, online payment provider. Annual
profit growth 88.53 per cent.
8. Cheapflights Media, price comparison
website. Annual profit growth 82.97 per cent.
9. Sun Mark, consumer products distributor.
Annual profit growth 77.42 per cent.
10. Regent Gas, gas supplier. Annual profit
growth 62.24 per cent.
Source: The Sunday Times Profit Track 100
LONDON’S FASTEST GROWING
PRIVATE COMPANIES BY PROFITS
Just to say thank you
Picture: GETTY
Do you have a career conundrum? Or just need a little
more direction? We would love to hear from you and help
you solve it – and are happy to preserve your anonymity.
Email donata.huggins@cityam.com
CONTACT US | CAREERS
22
H
AVE low interest rates finally
driven us mad? Thousands of
people are lending money to
complete strangers over the
internet through social lending sites.
The concept is quite frankly cool.
Lenders and borrowers deal directly
with each other, borrowers get lower
rates and lenders get higher returns.
It’s becoming a big business. Zopa – the
oldest fish in the social lending pond –
has arranged more than £125m worth
of loans in its six-year existence. But
the question nagging is: can it be safe?
Kevin Mountford, head of banking
at moneysupermarket.com says: “It’s
important to remember that anyone
using this kind of service is exposing
themselves to more risk and has far
less protection than someone deposit-
ing their money in a bank or building
society.” None of the money lent
through the schemes is protected by
the Financial Services Compensation
Scheme, so the depositor could lose
some or all of their investment if the
borrowers default or the firm goes
bust. But it is so far so good on this
front. No firms have gone bust and
only 0.7 per cent of Zopa’s investments
haven’t been repaid, and RateSetter
hasn’t had any yet – and their “provi-
sion fund” covers bad debts.
There are ways to play it safe with-
out losing out. Our first nugget of
advice is: do your research. There are at
least five major sites available –
Funding Circle, Quakle, Ratesetter, Yes-
secure and Zopa – all with slightly dif-
ferent offerings. Secondly, spread your
bets. No matter how creditworthy your
investment choices, there is always a
chance they might default. If you
spread your cash as thinly as possible,
across 20 or 50 people potentially, you
are less likely to lose your initial capi-
tal. Finally, don’t be tempted to just go
for the highest rate. Playing the rate
tart in this game means you expose
yourself to much higher risk. Happy
banking without the bank.
Banking without the bank can be safe if you do
your homework first, writes Donata Huggins
Forget investing in
an Isa, try lending
to a total stranger
JOIN GFT AND CITY AM FOR A FREE
CFD AND FOREX WORKSHOP
19 MAY 2011 AT 8 AM
REGISTER AT GFTUK.COM/CITYAM TO ATTEND
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presented by Boris Schlossberg
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presented by David Morrison
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DATE 19 May 2011
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Director of Currency Research, GFT
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CFD Market Strategist, GFT
SPREAD BETS | CFDs | FOREX / gftuk.com / free phone 0800 358 0864
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You won’t get that
effect from an Isa
Picture: GETTY
23
Wealth Management | Social Lending
Zopa (www.zopa.com)
Screens all potential borrowers, looking not only at their
credit history but at affordability factors too.
RateSetter (www.ratesetter.com)
RateSetter has a “provision fund” to cover bad debts.
This is paid for by the borrowers, through an additional
rate charge.
Funding Circle (www.fundingcircle.com)
The money here is lent to low-risk small businesses,
rather than individuals.
TOP THREE SOCIAL LENDING SITES
C
OMMODITIES took a big knock
in the recent correction, but
the fundamentals still point
towards continued rises over
the medium term. Assuming you
aren’t planning to fill your home
with sheep, soybeans and platinum,
with certain provisos, commodity
funds can offer you a route in.
THE PARTY ISN’T OVER
Investors who joined the commodity
party just prior to the correction
might feel as though they pitched up
too late – some will have cut their
losses and gone straight back home
to perceived safer assets. For those
that didn’t attend, reports of its
slump could have confirmed their
suspicions that the asset class is in a
bubble. But the party isn’t over: com-
modities will bounce back.
A BET ON INFLATION AND GROWTH
Because food and energy represents
about a quarter of CPI inflation and
over three quarters of its volatility,
exposure to commodities is a way of
hedging against inflation, some-
thing investors can’t get from most
other assets. Inflation is continu-
ing to bite, so investors are
continuing to like them.
Added to this, the central
banks of the US and Japan are
still priming the pump,
which is getting soaked up in
oil and other commodities. Also,
demand from emerging markets
will continue to put upward pres-
sure on commodity prices. Peter
Toogood, Director of
Investment Services at
OBSR, says that in rela-
tion to oil, China is
expected to be turning
out 25m cars by 2015,
double that of the US.
Combined with sup-
ply problems from
lack of investment
and with access to
oil getting increas-
ingly difficult, oil looks to
be on the up. However, get-
ting access to oil through a
fund is difficult. Toogood
says that as it is a futures
game the rollover of con-
tracts kills you. As such,
the trade “doesn’t work.”
SUPER-CYCLES
Investment cycles in the
capacity building of busi-
nesses working across most
commodities means that
the bull and bear takes a
long time to turn. The
current bull market has
been going for only
nine years, while the previous bear
market ran for around twenty-one
years. In spite of the risks of popping
bubbles down the line, Brazilian,
Indian, Chinese and Russian growth
is a trend that still has some way to
go.
PICKING WINNERS
As the table shows, not all broad bas-
ket commodity funds turned a profit
in the last three years. A better, if
potentially riskier tactic, would have
been to choose a specific sector. In
precious metals over the last three
years, investors have seen 162.7 per
cent growth from the ETFS Physical
Silver exchange-traded commodity
(ETC), while in soft commodities they
could have profited by 89.99 per cent
from the ETFS Cotton ETC. Picking
winners is a risky strategy though.
Investors would have lost around 80
per cent on natural gas energy ETCs.
But as Stephen Barber, who advises
Selftrade on markets and economics
says: “A diversified fund could mean
diluting exposure to the best per-
forming assets.”
TOP OF THE TREE
Research from Deutsche Bank
from 4 May shows that
despite the dip, commodities
are still the top-performing
asset class so far this year.
Commodities total returns are
7.1 per cent, followed by equity
at 6.2 per cent, then emerging
markets at 3.8 per cent, with
bonds at 0.3 per cent and
forex losing 1.1 per
cent. Investing in
commodities is not
for the faintheart-
ed. Commodities
and the funds
that track them
suffer hugely
from volatility
and in the long
run it is a bet
against techno-
logical innova-
tion. It is also vital
to avoid commodi-
ties funds like oil that
cannot profit from the
trend. In these cases
equities are a much bet-
ter bet.
Nevertheless, invest-
ment cycles suggest that
we are still in a bull market
and as inflation persists
and the world’s have-nots
chase the lifestyle of the
world’s haves, for the foresee-
able future demand for
commodities will
increase.
The right commodity fund will hedge
you against inflation and expose you
to global growth, says Philip Salter
Don’t worry,
the party in
commodities
isn’t over yet
Wealth Management | Funds
24 CITYA.M. 12 MAY 2011
IN FOCUS | TOP 10 BROAD BASKET COMMODITY FUNDS SOURCE:MORNINGSTAR
UK REGISTERED 09/05/08 LATEST LATEST DOMICILE PORTFOLIO MANAGEMENT
INVESTMENT FUNDS – 10/05/11 SHARE PORTFOLIO MANAGER(S) GROUP
PERFORM. PRICE SIZE
CHANGE (%) (£) (£M)
TOP10
Lyxor ETFCommodities CRBNon-EnergyA 39.54 18.90 N/A France N/A Lyxor International Asset Management
ETFSEx-Energy DJ-UBSCI ETC 27.68 8.80 18.44 Jersey N/A ETF Securities
Barclays Corals Index B EUR 17.15 N/A 44.91 Luxembourg N/A Barclays Capital Fund Solutions
EasyETF S&PGSNE AEUR 10.18 165.74 45.34 Luxembourg N/A BNPParibas
Marlborough ETF Commodity A 2.45 N/A 38.85 UK Nigel Baynes & Stacey Ash Marlborough Fund Managers
PIMCOGISCommodities Plus Strat EAcc -0.85 N/A 205.79 Ireland Saumil Parikh PIMCOGlobal Advisors
Lyxor ETF Commodities CRB GBP -3.44 20.47 N/A France N/A Lyxor International Asset Management
Vontobel Belvista Commodity BUSD -4.34 N/A 548.21 Luxembourg Jacques Blatter Vontobel Management
DB Platinum Commodity USD R1C -6.74 N/A 515.55 Luxembourg N/A DB Platinum Advisors
db x-trackers DLBCI - OYBalanced 1C -7.95 30.40 1,108.14 Luxembourg N/A db x-trackers Team
LON GD ONCE FIX AM...........1524.50 7.25
SILVER LDN FIX AM ..................36.73 -1.58
MAPLE LEAF 1 OZ ....................51.50 -1.50
LON PLATINUM AM................1803.00 5.00
LON PALLADIUM AM...............734.00 1.00
ALUMINIUM CASH .................2649.00 30.00
COPPER CASH ......................8935.00 29.00
LEAD CASH...........................2379.50 0.50
NICKEL CASH......................24800.00 30.00
TIN CASH.............................30045.00 0.00
ZINC CASH ............................2162.50 32.50
BRENT SPOT INDEX................116.23 2.94
SOYA .....................................1340.00 5.00
COCOA..................................3135.00 -8.00
COFFEE...................................281.70 -5.35
KRUG.....................................1564.00 -8.10
WHEAT ....................................193.00 -2.75
AIR LIQUIDE........................................96.22 -0.69 100.65 73.16
ALLIANZ............................................101.65 0.65 108.85 77.37
ALSTOM ..............................................42.36 -0.40 45.32 30.78
ANHEUS-BUSCH INBEV ....................40.89 -0.31 46.33 36.21
ARCELORMITTAL...............................24.49 -0.81 28.55 20.26
AXA......................................................15.05 0.13 16.16 10.88
BANCO SANTANDER...........................8.18 0.00 10.23 7.00
BASF SE..............................................64.87 -1.43 70.22 39.94
BAYER.................................................58.66 0.19 59.44 43.27
BBVA......................................................8.28 0.03 10.71 6.75
BMW ....................................................63.17 0.50 65.49 34.64
BNP PARIBAS.....................................54.62 0.49 59.93 40.81
CARREFOUR ......................................30.91 0.06 41.28 29.83
CREDIT AGRICOLE ............................11.02 -0.06 12.92 7.87
CRH PLC .............................................16.55 -0.06 20.19 11.51
DAIMLER.............................................50.80 -0.23 59.09 36.63
DANONE..............................................49.10 0.68 50.00 39.35
DEUTSCHE BANK..............................42.99 0.00 51.61 35.93
DEUTSCHE BOERSE .........................56.99 -0.01 62.48 46.33
DEUTSCHE TELEKOM.......................11.29 0.06 11.38 8.60
E.ON.....................................................21.45 0.15 26.49 20.21
ENEL......................................................4.74 0.05 4.86 3.42
ENI .......................................................17.55 0.07 18.66 14.30
FRANCE TELECOM............................15.79 0.08 17.45 14.01
GDF SUEZ ...........................................26.24 -0.03 30.05 22.64
GENERALI ASS...................................15.79 -0.02 17.05 13.31
IBERDROLA..........................................6.23 0.05 6.50 4.38
ING GROEP CVA...................................8.95 -0.01 9.50 5.79
INTESA SANPAOLO.............................2.14 0.00 2.70 1.88
KON.PHILIPS ELECTR.......................20.70 0.32 26.87 19.89
L'OREAL..............................................86.53 0.64 90.00 71.46
LVMH..................................................123.05 2.75 129.05 80.04
MUNICH RE .......................................112.25 -0.70 126.00 98.38
NOKIA....................................................6.11 0.09 8.94 5.42
REPSOL YPF.......................................23.09 -0.04 24.90 15.51
RWE.....................................................43.83 0.22 61.89 42.25
SAINT-GOBAIN...................................46.46 -0.68 47.64 27.81
SANOFI ................................................55.84 0.83 55.94 44.01
SAP......................................................44.62 0.36 46.15 33.60
SCHNEIDER ELECTRIC ...................115.55 0.05 123.65 74.60
SIEMENS .............................................95.99 -0.04 99.39 67.25
SOCIETE GENERALE.........................42.98 -0.10 52.70 29.71
TELECOM ITALIA..................................1.01 0.00 1.16 0.88
TELEFONICA ......................................17.03 0.11 19.69 14.67
TOTAL..................................................41.53 -0.29 44.55 35.66
UNIBAIL-RODAMCO SE...................152.30 -0.05 159.30 105.19
UNICREDIT............................................1.65 -0.01 2.24 1.46
UNILEVER CVA...................................23.00 0.24 24.11 20.68
VINCI ....................................................44.91 0.20 45.48 33.01
VIVENDI ...............................................19.41 0.25 22.07 16.18
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5976.00 -42.89 -0.71
FTSE 250 INDEX . . . . . . . 12017.87 -37.28 -0.31
FTSE UK ALL SHARE . . . . 3113.20 -20.53 -0.66
FTSE AIMALL SH . . . . . . . . 898.03 -0.91 -0.10
DOWJONES INDUS 30 . . 12630.03 -130.33 -1.02
S&P 500 . . . . . . . . . . . . . . . 1342.08 -15.08 -1.11
NASDAQ COMPOSITE . . . 2845.06 -26.83 -0.93
FTSEUROFIRST 300 . . . . . 1153.41 3.79 0.33
NIKKEI 225 AVERAGE. . . . 9864.26 45.50 0.46
DAX 30 PERFORMANCE. . 7495.05 -6.47 -0.09
CAC 40 . . . . . . . . . . . . . . . . 4058.08 5.57 0.14
SHANGHAI SE INDEX . . . . 2883.42 -7.21 -0.25
HANG SENG. . . . . . . . . . . 23291.80 -44.20 -0.19
S&P/ASX 20 INDEX . . . . . . 2891.10 27.60 0.96
ASX ALL ORDINARIES . . . 4858.20 54.60 1.14
BOVESPA SAO PAOLO. . 63775.82-1101.06 -1.70
ISEQ OVERALL INDEX . . . 3025.81 20.38 0.68
STI . . . . . . . . . . . . . . . . . . . . 3177.18 20.92 0.66
IGBM. . . . . . . . . . . . . . . . . . 1071.61 5.87 0.55
SWISS MARKET INDEX. . . 6562.82 36.66 0.56
Price Chg %chg
3M........................................................95.52 -0.19 97.95 72.7
ABBOTT LABS ...................................53.05 0.21 53.75 44.5
ALCOA ................................................17.05 -0.47 18.47 9.8
ALTRIA GROUP..................................27.06 -0.11 27.27 19.5
AMAZON.COM..................................204.38 0.44 205.50 105.8
AMERICAN EXPRESS........................49.83 -0.34 50.47 37.1
AMGEN INC.........................................58.86 0.56 59.20 50.3
APPLE...............................................347.23 -2.22 364.90 231.3
AT&T....................................................31.38 -0.31 31.94 23.7
BANK OF AMERICA...........................12.25 -0.03 17.49 10.9
BERKSHIRE HATAW B.......................80.10 -1.13 87.65 68.4
BOEING CO.........................................79.08 -0.87 80.65 59.4
BRISTOL MYERS SQUI ......................28.76 -0.05 28.95 22.2
CATERPILLAR..................................109.98 -2.89 116.55 54.8
CHEVRON.........................................102.26 -2.10 109.94 66.8
CISCO SYSTEMS................................17.78 -0.01 26.80 16.5
COCA-COLA.......................................67.32 -0.02 68.47 49.4
COLGATE PALMOLIVE......................85.07 -0.39 85.86 73.1
CONOCOPHILLIPS.............................72.52 -2.08 81.80 48.0
DU PONT(EI) DE NMR........................54.12 -1.77 57.00 33.7
EMC CORP..........................................27.30 -0.14 28.73 17.1
EXXON MOBIL....................................81.12 -2.22 88.23 55.9
GENERAL ELECTRIC.........................20.09 -0.21 21.65 13.7
GOLDMAN SACHS GRP..................147.91 -2.49 175.34 129.5
GOOGLE A........................................535.45 -7.21 642.96 433.6
HEWLETT PACKARD.........................41.06 -0.51 50.33 37.3
HOME DEPOT.....................................37.23 -0.04 39.38 26.6
IBM.....................................................169.50 -0.88 173.54 120.6
INTEL CORP .......................................23.41 0.38 23.86 17.6
J.P.MORGAN CHASE.........................44.23 -0.93 48.36 35.1
JOHNSON & JOHNSON.....................66.57 0.81 66.74 56.8
KRAFT FOODS A................................34.27 0.05 34.49 27.5
MC DONALD'S CORP ........................79.51 -0.20 80.94 65.3
MERCK AND CO. NEW......................36.63 -0.14 37.68 31.0
MICROSOFT........................................25.36 -0.31 29.73 22.7
OCCID. PETROLEUM.......................103.63 -3.35 117.89 72.1
ORACLE CORP...................................34.98 -0.64 36.50 21.2
PEPSICO.............................................70.20 0.17 70.78 60.3
PFIZER ................................................20.61 -0.25 21.20 14.0
PHILIP MORRIS INTL .........................68.17 -0.11 69.92 42.9
PROCTER AND GAMBLE ..................65.92 0.19 66.95 58.9
QUALCOMM INC ................................56.59 -0.32 59.84 31.6
SCHLUMBERGER ..............................82.25 -2.24 95.64 51.6
TRAVELERS CIES..............................63.25 -0.61 64.17 47.6
UNITED TECHNOLOGIE ....................89.52 -0.29 90.67 62.8
UNITEDHEALTH GROUP...................50.02 -0.49 50.98 27.1
VERIZON COMMS ..............................37.26 -0.31 38.95 25.0
WAL-MART STORES..........................55.17 -0.36 57.90 47.7
WALT DISNEY CO ..............................41.52 -2.39 44.34 30.7
WELLS FARGO & CO.........................28.16 -0.37 34.25 23.0
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.545 0.00
LIBOR Euro - overnight ..................1.002 -0.04
LIBOR Euro - 12 months.................2.115 0.00
LIBOR USD - overnight...................0.132 0.00
LIBOR USD - 12 months.................0.742 0.00
HaIifax mortgage rate .....................3.500 0.00
Euro Base Rate ...............................1.250 0.00
Finance house base rate................1.000 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................4.020 0.00
European repo rate.........................1.004 -0.08
Euro Euribor ....................................1.196 -0.04
The vix index ...................................17.38 1.47
The baItic dry index ........................1.344 0.00
Markit iBoxx...................................218.19 -0.89
Markit iTraxx....................................95.06 0.00
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.4174 0.0236
C/£ 0.8684 0.0119
C/¥ 114.69 1.8021
/C 1.1514 0.0013
/$ 1.6325 0.0044
/¥ 132.02 0.2903
FTSE 100
5976.00
-42.89
FTSE 250
12017.87
-37.28
FTSE ALLSHARE
3113.20
-20.53
DOW
12630.03
-130.33
NASDAQ
2845.06
-26.83
S&P 500
1342.08
-15.08
Smiths Group . . . . .1255.0 15.0 1429.0 1008.0
Brown (N.) Group . . .304.5 6.5 311.2 221.0
Carpetright . . . . . . . . .687.5 18.0 842.5 631.0
Debenhams . . . . . . . . .72.8 1.2 77.4 53.0
Dignity . . . . . . . . . . . .770.0 10.5 773.0 598.0
Dixons RetaiI . . . . . . .16.0 0.2 30.0 11.8
DuneImGroup . . . . . .471.6 -2.8 550.0 325.3
HaIfords Group . . . . .396.8 1.6 550.0 348.2
Home RetaiI Group . .228.5 2.8 280.6 188.5
Inchcape . . . . . . . . . .374.0 2.5 414.0 237.1
JD Sports Fashion . .902.5 10.0 964.5 683.0
Kesa EIectricaIs . . . .138.0 0.7 174.0 99.2
Kingfisher . . . . . . . . .280.5 2.1 285.8 198.5
Marks & Spencer G . .399.2 3.3 427.5 326.4
Mothercare . . . . . . . .434.8 10.6 627.5 382.0
Next . . . . . . . . . . . . .2315.0 -5.0 2359.0 1868.0
Sports Direct Int . . . .210.0 5.7 212.4 92.3
WH Smith . . . . . . . . . .502.0 3.3 523.0 398.2
Smith & Nephew . . . .686.0 -1.5 742.0 537.5
Synergy HeaIth . . . . .864.5 -1.5 948.0 562.5
Barratt DeveIopme . .118.0 3.9 125.2 70.1
BeIIway . . . . . . . . . . . .738.0 9.5 745.5 511.0
BerkeIey Group Ho .1141.0 16.0 1155.0 751.0
BaIfour Beatty . . . . . .331.8 -1.9 357.3 229.8
KeIIer Group . . . . . . .661.0 -10.5 782.5 515.0
Kier Group . . . . . . . .1411.0 -2.0 1416.0 886.5
Drax Group . . . . . . . .457.6 0.8 464.1 326.3
Scottish & Southe . .1351.0 18.0 1358.0 1010.0
Domino Printing S . .670.0 5.5 705.0 383.5
HaIma . . . . . . . . . . . . .381.5 0.6 384.8 239.5
Laird . . . . . . . . . . . . . .147.2 -0.7 179.0 98.8
Morgan CrucibIe C . .333.0 3.9 336.6 167.5
Renishaw . . . . . . . . .1708.0 -39.0 1819.0 658.5
Spectris . . . . . . . . . .1507.0 -13.0 1547.0 740.5
Aberforth SmaIIer . . .680.5 -6.5 697.0 495.0
AIIiance Trust . . . . . .379.9 -2.6 385.0 293.5
Bankers Inv Trust . . .421.0 -2.5 428.0 337.0
BH GIobaI Ltd. GB .1096.0 -4.0 1174.0 1058.0
BH GIobaI Ltd. US . . . .10.8 -0.1 11.6 10.4
BH Macro Ltd. EUR . . .16.6 -0.0 17.2 15.8
BH Macro Ltd. GBP 1700.0 -9.0 1780.0 1630.0
BH Macro Ltd. USD . . .16.5 -0.2 17.1 15.8
BIackRock WorId M .759.0 -16.0 815.5 533.0
BIueCrest AIIBIue . . .174.9 -1.0 176.2 161.2
British Assets Tr . . . .137.0 -1.6 140.5 105.0
British Empire Se . . .514.0 -10.0 526.0 404.1
CaIedonia Investm .1761.0 -12.0 1928.0 1532.0
City of London In . . .300.6 -1.1 303.2 233.7
Dexion AbsoIute L . .148.0 -1.2 151.0 131.2
Edinburgh Dragon . .238.5 -0.1 262.1 197.6
Edinburgh Inv Tru . . .473.7 -4.3 480.0 369.0
EIectra Private E . . .1737.0 -6.0 1755.0 1177.0
F&C Inv Trust . . . . . .314.1 -3.4 318.3 251.4
FideIity China Sp . . . .108.5 -1.3 128.7 92.3
FideIity European . .1260.0 -9.0 1287.0 916.0
FideIity SpeciaI . . . . .574.0 -4.0 595.0 503.0
HeraId Inv Trust . . . . .519.0 -6.0 541.0 349.8
HICL Infrastructu . . . .119.0 -0.2 121.0 112.0
Impax Environment .119.6 -1.2 130.5 106.5
JPMorgan American .886.0 -11.0 909.0 673.0
JPMorgan Asian In . .235.0 -0.8 250.8 182.5
JPMorgan Emerging .585.0 -7.0 639.0 479.5
JPMorgan European .954.5 -14.5 983.5 606.0
JPMorgan Indian I . . .418.4 -8.1 502.0 377.2
JPMorgan Russian .639.0 -9.5 755.0 502.0
Law Debenture Cor . .364.1 -2.9 369.6 273.3
MercantiIe Inv Tr . . .1103.0 -11.0 1137.0 840.0
Merchants Trust . . . .424.6 -4.4 430.5 320.0
Monks Inv Trust . . . .357.8 -3.4 367.9 275.5
Murray Income Tru . .658.0 -7.0 667.0 518.0
Murray Internatio . . .939.5 -5.0 966.0 801.0
PerpetuaI Income . . .266.7 -1.3 269.2 206.5
PoIar Cap TechnoI . .371.0 -3.8 391.2 269.0
RIT CapitaI Partn . . .1300.0 -10.0 1332.0 1056.0
Schroder Asia Pac . .223.5 -0.5 233.6 177.5
Scottish Inv Trus . . . .507.0 -5.5 517.0 401.5
Scottish Mortgage . .743.0 -6.0 764.0 533.0
SVG CapitaI . . . . . . . .266.2 -5.3 279.8 137.8
TempIe Bar Inv Tr . . .933.0 -14.5 949.0 717.0
TempIeton Emergin .641.5 -10.0 689.5 497.0
TR Property Inv T . . .188.2 0.0 190.0 132.3
TR Property Inv T . . . .87.2 -1.6 89.7 59.2
Witan Inv Trust . . . . .514.5 -5.0 528.0 409.9
3i Group . . . . . . . . . . .271.7 0.5 340.0 254.1
3i Infrastructure . . . . .119.4 0.4 125.2 106.6
Aberdeen Asset Ma .235.9 1.2 237.8 123.0
Ashmore Group . . . .370.0 -0.4 383.7 235.0
BerkeIey TechnoIo . . . .4.3 0.0 9.0 2.2
Brewin DoIphin Ho . .176.5 2.8 185.4 114.0
CameIIia . . . . . . . . . .9500.0-100.010700.07075.0
CharIes TayIor Co . . .135.0 -12.3 240.0 135.0
City of London Gr . . . .87.0 0.0 93.6 65.8
City of London In . . .413.0 2.3 461.5 273.5
CIose Brothers Gr . . .812.0 4.5 888.5 664.0
CoIIins Stewart . . . . . .82.5 -0.5 90.8 67.3
EvoIution Group . . . . .70.3 -2.0 108.0 67.0
F&C Asset Managem .81.3 0.3 92.9 47.5
Hargreaves Lansdo .610.5 -0.5 646.5 317.4
HeIphire Group . . . . . . .4.3 0.3 49.0 3.6
Henderson Group . . .154.6 -1.8 173.1 118.1
Highway CapitaI . . . . . .8.0 0.0 8.0 6.0
ICAP . . . . . . . . . . . . . .509.5 -0.5 570.5 359.5
IG Group HoIdings . .477.3 3.3 553.0 362.4
Intermediate Capi . . .328.6 -0.4 360.3 240.4
InternationaI Per . . . .375.5 25.2 386.6 183.3
InternationaI Pub . . . .116.8 -0.7 118.3 108.6
Investec . . . . . . . . . . .480.7 -4.9 538.0 429.2
IP Group . . . . . . . . . . . .50.3 0.8 52.5 28.0
Jupiter Fund Mana . .299.0 -5.5 337.3 180.3
LMS CapitaI . . . . . . . . .63.5 0.3 63.8 40.0
London Finance & . . .19.5 0.0 21.5 16.5
London Stock Exch .831.5 4.0 933.0 544.0
Man Group . . . . . . . . .252.7 4.0 311.0 201.9
Paragon Group Of . .181.2 0.2 191.5 114.4
Provident Financi . . .966.0 -47.0 1033.0 728.5
Rathbone Brothers .1180.0 10.0 1257.0 762.5
ReaI Estate Credi . . . . .1.3 0.0 2.4 0.9
RSM Tenon Group . . .24.0 -1.0 66.3 23.5
S & U . . . . . . . . . . . . .700.0 -2.5 708.5 482.5
Schroders . . . . . . . .1730.0 -20.0 1922.0 1154.0
Schroders (Non-Vo .1403.0 -16.0 1554.0 950.5
TuIIett Prebon . . . . . .417.5 0.1 429.4 298.0
WaIker Crips Grou . . .48.5 0.0 50.0 45.0
BT Group . . . . . . . . . .201.9 0.7 202.1 118.9
CabIe & WireIess . . . .48.2 0.3 62.9 44.4
CabIe & WireIess . . . .51.9 1.2 92.0 46.6
COLT Group SA . . . .147.9 2.3 156.2 109.0
TaIkTaIk TeIecom . . .133.4 -1.4 168.3 108.5
Booker Group . . . . . . .63.3 0.3 63.5 39.2
Greggs . . . . . . . . . . . .524.5 1.0 529.5 418.7
Morrison (Wm) Sup .301.7 -5.5 307.2 257.6
Ocado Group . . . . . . .211.0 -22.0 285.0 123.5
Sainsbury (J) . . . . . . .357.1 1.3 395.0 313.6
Tesco . . . . . . . . . . . . .412.0 0.7 440.7 377.5
Associated Britis . .1053.0 2.0 1182.0 920.5
Cranswick . . . . . . . . .755.0 -5.0 907.5 735.0
Dairy Crest Group . . .409.7 2.5 424.9 339.7
Devro . . . . . . . . . . . . .294.0 -2.0 296.9 168.5
Premier Foods . . . . . . .35.1 0.3 35.1 16.0
Tate & LyIe . . . . . . . . .615.0 -11.5 630.0 409.1
UniIever . . . . . . . . . .1975.0 -25.0 2000.0 1688.0
Mondi . . . . . . . . . . . . .607.5 -7.0 618.0 367.6
Centrica . . . . . . . . . . .311.7 3.0 346.1 264.5
InternationaI Pow . . .330.0 5.9 448.6 284.5
NationaI Grid . . . . . . .627.5 -2.0 633.0 484.2
Northumbrian Wate .357.0 2.5 361.5 265.3
Pennon Group . . . . . .674.0 12.0 675.0 482.9
Severn Trent . . . . . .1507.0 22.0 1513.0 1107.0
United UtiIities . . . . .623.5 2.0 632.0 514.5
Cookson Group . . . . .722.0 -2.5 737.5 367.4
DS Smith . . . . . . . . . .212.7 -1.6 226.0 108.0
Rexam . . . . . . . . . . . .391.9 -6.1 398.1 290.4
RPC Group . . . . . . . .335.0 2.5 339.5 178.7
BAE Systems . . . . . .335.1 2.6 369.9 294.7
Chemring Group . . . .659.5 6.5 736.5 519.6
Cobham . . . . . . . . . . .230.9 0.8 252.3 192.3
Meggitt . . . . . . . . . . . .361.5 -0.4 380.9 261.7
QinetiQ Group . . . . . .117.0 0.2 136.3 96.7
RoIIs-Royce Group . .644.5 1.0 665.0 535.0
Senior . . . . . . . . . . . . .155.9 -0.5 159.5 106.8
UItra EIectronics . . .1700.0 -9.0 1895.0 1518.0
GKN . . . . . . . . . . . . . .216.5 -3.6 237.1 109.3
BarcIays . . . . . . . . . . .279.1 1.1 344.0 255.4
HSBC HoIdings . . . . .646.1 -10.1 730.9 596.2
LIoyds Banking Gr . . .54.5 -0.0 77.6 50.5
RoyaI Bank of Sco . . .42.4 -0.1 52.1 37.6
Standard Chartere .1587.5 -5.0 1950.0 1520.7
AG Barr . . . . . . . . . .1367.0 -2.0 1394.0 909.5
Britvic . . . . . . . . . . . . .423.6 2.6 518.0 364.5
Diageo . . . . . . . . . . .1287.0 14.0 1294.0 1025.0
SABMiIIer . . . . . . . . .2272.0 14.0 2306.0 1827.0
AZ EIectronic Mat . . .290.0 0.0 320.0 248.5
Croda Internation . .1897.0 -22.0 1932.0 901.0
EIementis . . . . . . . . . .159.9 -0.1 169.8 58.8
Johnson Matthey . .2019.0 -10.0 2100.0 1460.0
Victrex . . . . . . . . . . .1447.0 2.0 1522.0 933.5
YuIe Catto & Co . . . . .211.6 -2.4 240.5 109.4
Price Chg High Low
Bovis Homes Group .454.7 16.4 464.7 326.6
Persimmon . . . . . . . .502.5 5.1 505.5 336.5
Reckitt Benckiser . .3440.0 -15.0 3648.0 3015.0
Redrow . . . . . . . . . . . .127.0 -0.5 139.1 97.5
TayIor Wimpey . . . . . . .39.7 0.1 43.3 22.3
Bodycote . . . . . . . . . .394.3 -3.4 398.0 182.5
Charter Internati . . . .785.5 -4.5 853.5 567.0
Fenner . . . . . . . . . . . .383.8 2.3 391.6 183.3
IMI . . . . . . . . . . . . . . .1097.0 -15.0 1120.0 578.0
MeIrose . . . . . . . . . . .348.0 0.5 355.5 203.4
Northgate . . . . . . . . . .337.8 -3.1 346.7 152.3
Rotork . . . . . . . . . . .1766.0 18.0 1895.0 1254.0
Spirax-Sarco Engi . .2060.0 -3.0 2090.0 1344.0
Weir Group . . . . . . .1934.0 -14.0 1963.0 846.0
Ferrexpo . . . . . . . . . . .473.9 4.9 499.0 219.0
TaIvivaara Mining . . .483.9 -6.5 622.0 342.4
BBAAviation . . . . . . .222.6 -0.7 240.8 175.0
Forth Ports . . . . . . . .1625.0 1.0 1647.0 1112.0
Stobart Group Ltd . . .134.1 -3.1 163.6 129.8
AdmiraI Group . . . . .1734.0 -6.0 1753.0 1238.0
AmIin . . . . . . . . . . . . .425.0 -2.0 433.0 369.3
Haynes PubIishing . .242.0 0.0 262.5 202.5
Huntsworth . . . . . . . . .71.3 -1.8 87.5 65.0
Informa . . . . . . . . . . . .426.4 9.2 461.1 342.1
ITE Group . . . . . . . . . .254.9 -0.4 258.2 135.5
ITV . . . . . . . . . . . . . . . . .71.9 -4.0 93.5 48.3
Johnston Press . . . . . . .8.0 0.4 30.3 7.1
MecomGroup . . . . . .286.0 -3.0 310.0 162.0
Moneysupermarket. .100.4 1.1 100.4 61.0
Pearson . . . . . . . . . .1157.0 7.0 1160.0 864.0
Reed EIsevier . . . . . .559.5 10.0 590.5 460.6
Rightmove . . . . . . . .1067.0 -18.0 1091.0 596.5
STV Group . . . . . . . . .157.0 0.0 168.0 66.0
Tarsus Group . . . . . .154.5 1.5 165.0 107.0
Trinity Mirror . . . . . . . .51.8 -1.0 138.8 45.8
United Business M . .600.5 12.5 725.0 480.1
UTV Media . . . . . . . . .136.0 -7.5 151.0 106.0
WiImington Group . .151.0 0.0 183.0 134.3
WPP . . . . . . . . . . . . . .774.5 2.0 846.5 608.0
YeII Group . . . . . . . . . . .6.7 0.1 50.0 5.8
African Barrick G . . .503.5 -11.5 670.0 501.5
AngIo American . . .2991.0 -64.0 3437.0 2254.0
AngIo Pacific Gro . . .305.4 -7.2 369.3 230.0
Antofagasta . . . . . . .1189.0 -31.0 1634.0 761.0
Aquarius PIatinum . .343.0 -6.6 432.6 227.1
BHP BiIIiton . . . . . . .2406.0 -43.0 2631.5 1684.5
BeazIey . . . . . . . . . . . .130.0 0.0 139.2 109.1
CatIin Group Ltd. . . .397.6 -1.0 405.6 319.9
CPP Group . . . . . . . . .127.8 -1.7 329.0 121.3
Hiscox Ltd. . . . . . . . . .417.1 -4.9 422.0 334.2
Jardine LIoyd Tho . . .704.5 4.0 709.0 521.5
Lancashire HoIdin . . .629.0 5.5 653.5 459.7
RSA Insurance Gro . .139.8 0.9 143.5 114.8
Aviva . . . . . . . . . . . . . .447.1 0.4 477.9 294.2
LegaI & GeneraI G . . .117.9 0.9 123.8 72.3
OId MutuaI . . . . . . . . .135.3 -0.8 145.2 102.0
Phoenix Group HoI . .681.5 -2.0 758.0 584.5
PrudentiaI . . . . . . . . .765.0 -5.0 781.0 489.2
ResoIution Ltd. . . . . .297.4 1.1 311.7 211.3
St James's PIace . . . .357.6 -1.0 360.4 204.2
Standard Life . . . . . . .220.4 -0.6 244.7 173.0
4imprint Group . . . . .254.0 0.5 275.0 185.0
Aegis Group . . . . . . .139.4 1.0 148.3 103.6
BIoomsbury PubIis . .134.0 -3.3 138.0 106.5
British Sky Broad . . .843.5 1.5 849.0 536.5
Centaur Media . . . . . . .55.0 0.0 73.0 45.8
Chime Communicati .270.0 6.0 281.8 158.0
Creston . . . . . . . . . . . .96.5 -0.5 100.5 78.5
DaiIy MaiI and Ge . . .497.7 4.1 594.5 433.0
Euromoney Institu . .713.0 -5.0 736.0 510.0
Future . . . . . . . . . . . . . .18.8 0.0 30.0 15.8
Centamin Egypt Lt . .121.9 -3.8 197.1 118.5
Eurasian NaturaI . . .862.0 -19.5 1137.0 818.0
FresniIIo . . . . . . . . . .1411.0 -60.0 1682.0 811.5
GemDiamonds Ltd. .282.0 -3.0 306.0 186.3
HochschiId Mining . .542.0 -27.0 680.0 255.9
Kazakhmys . . . . . . .1265.0 -36.0 1671.0 965.0
Kenmare Resources . .45.6 2.3 50.3 9.3
Lonmin . . . . . . . . . . .1551.0 -25.0 1983.0 1355.0
PetropavIovsk . . . . . .848.5 -31.0 1365.0 842.5
RandgoId Resource 4790.0-109.0 6655.0 4425.0
Rio Tinto . . . . . . . . .4184.0 -51.5 4712.0 2812.0
Vedanta Resources 2165.0 -45.0 2583.0 1839.0
Xstrata . . . . . . . . . . .1410.0 -32.0 1550.0 845.8
Inmarsat . . . . . . . . . . .607.5 -12.5 821.0 575.0
Vodafone Group . . . .169.7 0.1 181.9 129.5
Genesis Emerging . .522.0 -6.0 568.0 427.0
Afren . . . . . . . . . . . . . .152.4 -0.9 171.2 79.2
BG Group . . . . . . . . .1367.0 -45.5 1564.5 984.0
BP . . . . . . . . . . . . . . . .448.0 -7.5 547.6 302.9
Cairn Energy . . . . . . .432.1 -2.3 493.2 366.0
EnQuest . . . . . . . . . . .136.4 -0.4 158.5 92.4
Essar Energy . . . . . .430.1 -0.7 589.5 387.1
ExiIIon Energy . . . . . .453.5 -0.2 474.6 166.0
Heritage OiI . . . . . . . .237.7 -6.1 493.0 235.0
JKX OiI & Gas . . . . . .293.1 -2.2 335.1 223.2
Premier OiI . . . . . . . .1879.0 -42.0 2140.0 1085.0
RoyaI Dutch SheII . .2205.0 -44.0 2326.5 1624.0
RoyaI Dutch SheII . .2205.0 -45.0 2336.0 1554.0
SaIamander Energy .284.3 1.3 317.6 204.9
Soco Internationa . . .379.0 14.7 484.2 292.0
TuIIow OiI . . . . . . . . .1348.0 -33.0 1493.0 991.5
Amec . . . . . . . . . . . .1207.0 21.0 1251.0 764.0
Hunting . . . . . . . . . . .765.0 -6.5 817.0 439.4
John Wood Group . .675.0 -5.0 706.0 293.1
LampreII . . . . . . . . . . .352.8 -2.9 390.0 195.3
Petrofac Ltd. . . . . . .1484.0 -7.0 1685.0 1002.0
Burberry Group . . . .1365.0 36.0 1366.4 612.5
PZ Cussons . . . . . . . .324.9 -4.8 409.0 279.3
Supergroup . . . . . . .1574.0 5.0 1820.0 560.0
AstraZeneca . . . . . .3142.5 2.5 3385.0 2801.5
BTG . . . . . . . . . . . . . .250.5 -4.0 263.0 154.2
Genus . . . . . . . . . . . . .987.0 -11.5 1000.0 681.0
GIaxoSmithKIine . . .1309.5 7.5 1318.5 1095.0
Hikma Pharmaceuti .808.0 -0.5 900.0 648.0
Shire PIc . . . . . . . . . .1922.0 43.0 1924.0 1321.0
CapitaI & Countie . . .169.9 0.2 172.7 100.0
Daejan HoIdings . . .2765.0 -11.0 2919.0 2157.0
F&C CommerciaI Pr .106.9 -1.1 108.0 88.0
Grainger . . . . . . . . . . .122.5 -1.2 130.0 86.3
HeIicaI Bar . . . . . . . . .258.5 -2.5 339.5 256.0
London & Stamford .129.6 0.9 133.5 110.3
SaviIIs . . . . . . . . . . . . .406.0 1.1 409.6 273.1
St. Modwen Proper . .172.4 -1.0 187.4 135.4
UK CommerciaI Pro . .80.7 -1.9 85.0 74.3
Unite Group . . . . . . . .213.7 -4.5 229.8 163.0
Big YeIIow Group . . .341.0 -2.5 353.3 284.4
British Land Co . . . . .588.0 -5.0 604.0 418.3
CapitaI Shopping . . .398.2 -3.3 424.8 301.0
Derwent London . . .1740.0 -11.0 1824.0 1208.0
Great PortIand Es . . .409.1 -0.8 427.8 280.5
Hammerson . . . . . . . .468.3 -4.2 477.5 336.3
Hansteen HoIdings . . .87.9 -0.2 89.3 59.4
Land Securities G . . .768.5 -3.0 791.5 545.0
SEGRO . . . . . . . . . . . .315.6 -3.4 331.3 250.2
Shaftesbury . . . . . . . .509.5 -3.0 520.5 349.3
Autonomy Corporat 1721.0 -5.0 1975.0 1271.0
Aveva Group . . . . . .1645.0 2.0 1739.0 1044.0
Computacenter . . . . .466.4 -23.3 489.7 260.0
Fidessa Group . . . . .1815.0 -14.0 1829.0 1269.0
Invensys . . . . . . . . . . .331.6 -1.6 364.3 230.2
Kofax . . . . . . . . . . . . .489.6 14.2 535.0 231.0
Logica . . . . . . . . . . . .143.9 0.8 147.2 101.7
Micro Focus Inter . . .370.5 -13.9 541.5 276.0
Misys . . . . . . . . . . . . .352.3 4.1 358.1 217.0
Sage Group . . . . . . . .290.9 -5.1 302.0 222.7
SDL . . . . . . . . . . . . . . .675.0 -5.0 682.0 421.0
TeIecity Group . . . . . .523.5 5.0 533.5 365.0
Aggreko . . . . . . . . . .1788.0 -4.0 1805.0 1173.0
Ashtead Group . . . . .197.0 -3.5 207.9 77.0
Atkins (WS) . . . . . . . .782.5 -6.0 796.0 631.0
Babcock Internati . . .641.0 -9.5 654.0 492.8
Berendsen . . . . . . . . .491.5 0.0 519.5 360.2
BunzI . . . . . . . . . . . . .730.0 -20.5 783.0 658.0
Capita Group . . . . . . .732.5 -8.5 812.5 635.5
CariIIion . . . . . . . . . . .397.8 -1.1 404.5 291.2
De La Rue . . . . . . . . .810.0 10.0 984.0 549.5
EIectrocomponents .284.4 -1.3 289.4 205.7
Experian . . . . . . . . . . .816.5 -0.5 823.0 575.5
FiItrona PLC . . . . . . . .356.0 -5.0 361.0 193.4
G4S . . . . . . . . . . . . . . .277.2 -1.6 282.8 237.7
Hays . . . . . . . . . . . . . .117.3 -0.6 133.6 88.4
Homeserve . . . . . . . .523.5 -8.5 532.0 377.8
Howden Joinery Gr . .115.9 -1.0 127.5 56.8
Intertek Group . . . . .2087.0 -22.0 2148.0 1331.0
MichaeI Page Inte . . .543.0 -8.5 567.0 346.4
Mitie Group . . . . . . . .211.2 3.2 241.1 188.7
Premier FarneII . . . . .295.1 -0.4 308.8 208.4
Regus . . . . . . . . . . . . .112.5 -0.1 119.0 66.1
RentokiI InitiaI . . . . . . .95.3 -0.3 127.7 84.3
RPS Group . . . . . . . . .247.0 10.0 248.7 169.8
Serco Group . . . . . . .558.5 8.5 645.0 529.5
Shanks Group . . . . . .119.0 -2.8 126.7 92.0
SIG . . . . . . . . . . . . . . .146.1 0.6 153.2 90.7
SThree . . . . . . . . . . . .422.1 -2.9 447.6 231.1
Travis Perkins . . . . .1074.0 -6.0 1127.0 709.0
WoIseIey . . . . . . . . .2137.0 -9.0 2261.0 1223.0
ARM HoIdings . . . . . .597.5 4.5 651.0 228.4
CSR . . . . . . . . . . . . . .375.0 -16.4 447.0 280.9
Imagination Techn . .470.0 1.0 500.0 220.7
Pace . . . . . . . . . . . . . . .98.0 5.0 231.8 93.0
Spirent Communica .146.7 2.7 160.3 102.8
British American . .2718.0 -0.5 2729.5 1959.0
ImperiaI Tobacco . .2197.0 -27.0 2233.0 1753.0
Avis Europe . . . . . . . .194.0 -1.9 284.7 184.8
Betfair Group . . . . . . .816.0 -4.0 1550.0 809.5
Bwin.party Digita . . .151.0 2.0 309.5 127.5
CarnivaI . . . . . . . . . .2590.0 -13.0 3153.0 2037.0
Compass Group . . . .587.5 -4.0 595.5 501.0
Domino's Pizza UK . .424.0 2.0 586.0 332.7
easyJet . . . . . . . . . . . .357.1 0.1 479.0 322.3
Enterprise Inns . . . . . .95.9 -0.2 139.3 84.4
FirstGroup . . . . . . . . .351.8 7.6 412.6 311.3
Go-Ahead Group . . .1496.0 -4.0 1513.0 1042.0
Greene King . . . . . . .498.7 -1.3 507.0 376.2
InterContinentaI . . .1306.0 8.0 1435.0 982.0
InternationaI Con . . .246.4 -2.0 305.0 184.2
JD Wetherspoon . . . .465.9 -2.4 478.1 386.
Ladbrokes . . . . . . . . .148.3 -1.6 152.2 122.
Marston's . . . . . . . . . .110.3 -0.3 117.1 89.
MiIIennium& Copt . .534.0 8.0 600.5 386.
MitcheIIs & ButIe . . . .330.1 -2.9 361.0 274.
NationaI Express . . .263.0 -1.9 265.8 213.
Punch Taverns . . . . . .77.9 -1.0 90.4 58.
Rank Group . . . . . . . .149.1 -2.9 153.5 94.
Restaurant Group . . .303.3 -25.7 335.0 208.
Stagecoach Group . .244.0 -1.5 246.9 160.
Thomas Cook Group 160.6 -1.4 236.1 160.
TUI TraveI . . . . . . . . . .245.1 -2.9 271.9 190.
Whitbread . . . . . . . .1614.0 -44.0 1887.0 1266.
WiIIiamHiII . . . . . . . . .208.6 -2.7 223.5 155.
Abcam . . . . . . . . . . . .391.3 -2.0 402.0 236.
AIbemarIe & Bond . .303.5 1.0 334.0 218.
Amerisur Resource . .22.5 0.3 27.0 11.
ArchipeIago Resou . . .66.8 0.0 66.8 32.
ASOS . . . . . . . . . . . .2355.0 -47.0 2432.0 591.
AureIian OiI & Ga . . . .57.8 0.3 92.0 35.
Avanti Communicat .444.0 -6.0 735.0 423.
Avocet Mining . . . . . .206.5 4.0 253.5 112.
BIinkx . . . . . . . . . . . . .144.5 0.8 151.8 12.
Borders & Souther . . .62.8 0.8 93.0 57.
BowLeven . . . . . . . . .313.0 28.3 398.0 103.
CaIedon Resources .105.5 1.5 107.0 23.
Cape . . . . . . . . . . . . . .521.0 -3.5 564.0 190.
Conygar Investmen .112.5 0.0 120.0 101.
Cove Energy . . . . . . . .87.8 -3.0 112.8 47.
Daisy Group . . . . . . .102.0 -1.3 108.5 84.
Desire PetroIeum . . . .12.8 0.0 168.5 12.
EMIS Group . . . . . . . .499.8 2.4 509.5 303.
Encore OiI . . . . . . . . . .93.0 -1.8 151.5 16.
Faroe PetroIeum . . . .155.8 -0.3 218.3 107.
GuIfsands PetroIe . . .268.0 1.5 401.5 244.
GWPharmaceuticaI .118.4 1.4 141.0 83.
Hamworthy . . . . . . . .570.0 -4.0 582.0 256.
Hargreaves Servic . .995.0 -0.5 1009.0 556.
HeaIthcare Locums . .112.5 0.0 112.5 112.
Immunodiagnostic . .846.0 -44.5 975.0 575.
ImpeIIamGroup . . . .331.5 -4.0 387.5 66.
James HaIstead . . . . .450.0 2.5 475.0 298.
KaIahari MineraIs . . .223.0 -3.0 301.0 142.
London Mining . . . . .401.0 -6.8 436.5 194.
Lupus CapitaI . . . . . .140.0 0.0 150.0 72.
M. P. Evans Group . .424.9 -10.5 500.5 317.
Majestic Wine . . . . . .425.0 3.0 430.0 268.
May Gurney Integr . .253.0 1.5 264.0 177.
Monitise . . . . . . . . . . . .29.5 3.0 30.0 17.
MuIberry Group . . . .1534.0 -10.0 1610.0 197.
Nanoco Group . . . . . . .90.0 0.3 115.8 68.
NauticaI PetroIeu . . .367.8 -4.0 547.0 49.
NichoIs . . . . . . . . . . . .521.8 -3.0 526.4 357.
Numis Corporation . .114.0 1.0 156.5 94.
Patagonia GoId . . . . . .42.0 -1.5 59.3 12.
Pursuit Dynamics . . .292.0 -4.0 700.0 184.
Rockhopper ExpIor .220.0 -4.5 510.0 172.
RWS HoIdings . . . . . .404.5 -5.4 418.0 239.
Songbird Estates . . .157.0 -1.5 159.5 133.
SterIing Energy . . . . . .56.8 3.8 147.0 48.
VaIiant PetroIeum . . .544.5 8.5 761.5 504.
VatukouIa GoId Mi . . .148.3 -3.3 227.0 84.
Young & Co's Brew . .600.0 3.0 670.0 510.
InternationaI Pers . . .375.5 7.2
Pace . . . . . . . . . . . . . . .98.0 5.4
Kenmare Resources . .45.6 5.2
RPS Group . . . . . . . . .247.0 4.2
Soco InternationaI . .379.0 4.0
Bovis Homes Group .454.7 3.7
Barratt DeveIopmen .118.0 3.4
Kofax . . . . . . . . . . . . .489.6 3.0
Sports Direct Inte . . .210.0 2.8
Burberry Group . . . .1365.0 2.7
Ocado Group . . . . . . .211.0 -9.4
Restaurant Group . . .303.3 -7.8
ITV . . . . . . . . . . . . . . . .71.9 -5.3
Computacenter . . . . .466.4 -4.8
HochschiId Mining . .542.0 -4.8
Provident Financia . .966.0 -4.6
CSR . . . . . . . . . . . . . .375.0 -4.2
FresniIIo . . . . . . . . . .1411.0 -4.1
Micro Focus Intern . .370.5 -3.6
PetropavIovsk . . . . . .848.5 -3.5
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
FINANCIAL SERVICES
FIXED LINE TELECOMS
FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. & EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM 50
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REAL ESTATE INVEST. TRUSTS
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AUTOMOBILES & PARTS
BANKS
CHEMICALS
BEVERAGES
GENERAL INDUSTRIALS
MOBILE TELECOMS
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
MINING
NONEQUITY INVESTM. COMM.
Tsy 3.250 11 . . . . .101.59 0.00 103.8 101.6
Tsy 9.000 11 . . . . .101.43 -0.03 109.6 101.4
Tsy 2.500 11 . . . . .308.11 -0.01 311.1 308.1
Tsy 5.250 12 . . . .104.75 -0.05 108.6 104.7
Tsy 9.000 12 . . . .109.93 0.00 117.1 108.9
Tsy 5.000 12 . . . .103.53 -0.04 107.4 103.5
Tsy 4.500 13 . . . .106.17 -0.10 109.2 105.8
Tsy 2.500 13 . . . .284.51 -0.06 284.8 271.9
Tsy 8.000 13 . . . . .116.14 -0.15 121.3 115.8
Tsy 5.000 14 . . . . .110.45 -0.24 114.1 109.2
Tsy 7.750 15 . . . .104.87 -0.53 111.2 76.0
Tsy 8.000 15 . . . .125.40 -0.33 131.6 123.7
Tsy 4.750 15 . . . . .110.75 -0.32 114.7 108.6
Tsy 2.500 16 . . . .323.80 -0.17 325.2 304.0
Tsy 4.000 16 . . . .107.69 -0.38 111.4 104.9
Tsy 1.250 17 . . . .109.85 -0.32 111.1 104.9
Tsy 8.750 17 . . . .135.61 -0.40 142.2 132.9
Tsy 12.000 17 . . .127.25 0.00 185.9 126.8
Tsy 5.000 18 . . . . .113.15 -0.41 117.6 109.7
Tsy 4.500 19 . . . .109.29 -0.47 113.8 105.4
Tsy 3.750 19 . . . .103.43 -0.51 107.7 99.4
Tsy 4.750 20 . . . . .110.67 -0.50 115.9 106.6
Tsy 2.500 20 . . . .330.59 -0.33 332.4 303.8
Tsy 8.000 21 . . . .138.77 -0.47 147.1 133.8
Tsy 1.875 22 . . . . .115.19 -0.37 117.8 108.5
Tsy 4.000 22 . . . .103.20 -0.54 108.4 99.0
Tsy 2.500 24 . . . .288.92 -0.33 291.5 262.1
Tsy 5.000 25 . . . . .111.88 -0.55 118.5 107.4
Tsy 1.250 27 . . . .108.16 -0.37 111.2 100.5
Tsy 4.250 27 . . . .102.31 -0.58 108.8 97.9
Tsy 6.000 28 . . . .124.44 -0.55 132.7 119.5
Tsy 4.750 30 . . . .107.91 -0.44 115.0 103.0
Tsy 4.125 30 . . . .272.82 -0.26 275.2 248.7
Tsy 4.250 32 . . . .100.99 -0.54 107.8 96.0
Tsy 4.250 36 . . . .100.40 -0.52 107.4 95.0
Tsy 4.750 38 . . . .108.95 -0.49 116.5 102.8
Tsy 4.500 42 . . . .105.25 0.00 112.8 98.9
% %
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Wealth Management | Markets
25 CITYA.M. 12 MAY 2011
CITYA.M. XX XXXXXXX
Lifestyle | Books
26 CITYA.M. 12 MAY 2011
coverage and trial of Muller, who was
eventually hanged despite doubts over evi-
dence. (As far back as Victorian times, it
becomes clear, we Brits were keen on a
good yarn, even if it did blind our judge-
ment from the truth.)
The book has inevitably been compared
with Kate Summerscale’s 2008 bestseller,
The Suspicions of Mr. Whicher, and it’s
true there are many overlaps. But don’t let
that distract you. This is a gripping, beau-
tifully written read.
MADE IN BRITAIN: HOW
THE NATION EARNS
ITS LIVING
BY EVAN DAVIS
Little Brown, £18.99
hhhhi
by Philip Salter
MADE in Britain is the second book by the
prolific economist and journalist Evan
Davis, which will accompany a BBC series
of the same name. For fans that listen to
him dissect the countless erroneous eco-
nomic arguments presented by guests on
the Today Programme, this work will hit
the spot. His upbeat, balanced and effort-
less interviewing style translates well into
prose and it is filled with interesting facts
that can slip through the noise of informa-
tion – such as the fact that German auto-
motive production only accounts for 3 to
4 per cent of its economy.
A central aim of the book is a noble one
especially given the bias of the UK press: to
stop people trying to assess the value of
what they do by looking at physical pro-
duction alone. His contention is: “It’s not
the weight or size of an object that makes
it valuable and, more than most other
advanced economies, Britain has found
ways of earning a living that are beyond
manufacturing.”
A position that won’t surprise listeners
of The Bottom Line, his absorbing Radio 4
discussion programme with business lead-
ers and entrepreneurs.
Books accompanying television series
often fall short against standalone books.
Made in Britain is an exception. Davis
resists coming down on either side of the
left-right wing debates he presents (which
may frustrate some) but it’s an engaging
book written by an author whose passion
and command of his subject shine
through.
EVERYONE LOVES YOU
WHEN YOU’RE DEAD (AND
OTHER THINGS I LEARNED
FROM FAMOUS PEOPLE)
BY NEIL STRAUSS
Portfolio, £20
hhhii
by Lucie Greene¶
AS a senior writer for Rolling Stone, jour-
nalist Neil Strauss has witnessed some
incredible moments in pop culture histo-
ry. Here, in Everyone Loves you When
You’re dead (And other Things I learned
from Famous People) he revisits key inter-
views with icons, presenting them in new
form as mini episodes.
Strauss says he has conducted over
3,000 interviews since the age of 18,
including Lady Gaga, Tom Cruise,
Chuck Berry and David Bowie. Of
these, meetings with Hugh Hefner;
travelling with Madonna by heli-
copter; Gaga crying over ex-
boyfriends; and being locked in
an apartment with Courtney
Love are featured. Each
encounter is posited as a
moment that is most illustrative
about the celebrity.
Strauss is somewhat of a
celebrity himself these days and
has been tapped by many celebri-
ties to ghost write autobiogra-
phies in the past. (Not least
Jenna Jamesons’ How to Make
Money like a Porn Star.) He’s
also well known for penning
the bestseller The Game:
Penetrating the Secret Society of
Pickup Artists. This new book is an
entertaining read and gives excellent
insight in to the strange world of
celebrities. The only problem with its
snippet-style format is that it can
sometimes feels disjointed.
Victorian railway
murder inspires
gripping first novel
The accused: Franz
Muller, the German
tailor
Picture: Getty
Madonna, right, as featured in one
of Strauss’ weird and wacky
celebrity moments.
Picture: Reuters
Kate Colquhoun has created a compelling
whodunit based on real historical events
MR. BRIGGS’ HAT
BY KATE COLQUHOUN
Little Brown, £16.99
hhhhi
by Lucie Greene
MR Briggs’ Hat, the debut novel by award-
winning historian Kate Colquhoun, is a
current hot pick of the literary press. And
it’s easy to see why. This is a rip-roaring tale
of murder and intrigue set in 1864.
The story – based on real life events –
centres on a mysterious murder which
takes place in the first cl ass carriage of a
North London train. Two bank clerks dis-
cover a hat in first-class on top of a pool of
blood from murder victim Thomas Briggs,
a senior bank clerk, who is later found
dying on the railway tracks. What ensues
is a nationwide manhunt for the killer
and news sensation, culminating in the
trial of suspect German tailor Franz
Muller.
Colquhoun deftly explores the impact
of the murder on the Victorian psyche at a
time when society was relishing the won-
ders of the industrial age and railway
expansion, but equally becoming more
paranoid about the evils of urban society.
It also highlights the growth of newspa-
pers of the era – 1864 was considered a
golden age for British press – and how this
impacted the drama of the investigation’s
NOËL COWARD THEATRE
0844 482 5141
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TOMORROW’S PAPER
W
ITH finishing touches being made
to Battery Club in Canary
Wharf, the owners are not
resting on their laurels. They’re in
the midst of launching Alphabet City, a hip
new members only dining room, bar and
lounge at the O2. With all manner of pop
star after-parties in the mix, locking down a
founder membership could mean landing
your very own “meet and greet”. With the
Gresham Club due this summer they still
have a few more tricks up their sleeves.
Another recent Docklands launch is
Boisdale of Canary Wharf on Cabot
Square, which opened over two huge floors,
complete with signature colour scheme,
mahogany paneling and a generous helping
of McDonald tartan. Whereas the original in
Belgravia conveys an old school eccentricity,
here the bold reds lend a more contempo-
rary backdrop to a light and airy space and
stunning sunset views. The 1,000 sq ft
Cigar Terrace and Cuban Cigar Library
(complete with members’ lockers and
indoor smoking room) complements the
stock of 1,000 rare whiskeys to ensure a
treat for connoisseurs. With Jools Holland
as Patron of Music and a large music stage
on its upper floor, Boisdale seems to be hit-
ting the right note in its effort to bring a
world class jazz venue to Canary Wharf as
well as world class whisky and food.
Pollen Street Social, the brainchild of ex-
Gordon Ramsey chef Jason Atherton, has
opened just off Hanover Square with its own
separate bar. The Social Roomlives up to its
name as a laid back, unstuffy affair with big
windows and simple, low-key luxury to put
patrons at ease. The “deconstructed” cock-
tails include intriguing options like the
Breakfast Martini – vodka, Grand Marnier,
marmalade and toast.
Over in Shoreditch, The Worship Street
Whistling Shop has just been unleashed by
the team behind molecular speakeasy Purl
in Marylebone. Taking the Victorian gin
palace theme to new levels, the folk here
concoct scientific-style potions. Try the
Cocktail Emporium for an instructional, sen-
sory experience or the Dram Shop for seri-
ous gin consumption and an honesty bar.
Last but not least the appealing Riding
House Cafe opened last week on Great
Titchfield Street with an NYC sociable vibe.
Just avoid eye contact with the lampshade
squirrels if you can.
www.alphabetgroup.co.uk
www.boisdale-cw.co.uk
www.pollenstreetsocial.com
www.whistlingshop.com
www.ridinghousecafe.co.uk
Tim Badham is the founder of Innerplace,
London’s leading providers of VIP enter-
tainment, including film premieres, fashion
shows, launch parties and members club
access.
ww.innerplace.co.uk.
GOING
OUT
TIM BADHAM
Jazz, cigars and pop stars come to Docklands
Hotel bars, once seen as dull and stuffy, are
now recognised as the places to enjoy the
classiest cocktails, writes Timothy Barber
The glamorous
way to drink
I
F you want the finest cocktails
served by the most talented bar
staff in the most spectacular set-
ting – and let’s face it, who does-
n’t – London’s swish hotels are right
now the place to find them. Thanks to
a slew of upgrades and openings, the
ever-burgeoning popularity of sophis-
ticated cocktails and the continuing
cultural cool of all things old-fash-
ioned, the capital’s hotel bars have
been having a notable resurgence.
From new openings to old classics,
here is City A.M.’s pick of the best.
HOTEL: St Pancras Renaissance
BAR: The Booking Office and the
Gilbert Scott (right)
The gothic splendour of the newly-
revived hotel at St Pancras station is
on show in its primary bar, whose
name – the Booking Office – hardly
offers an idea of its cathedral-esque
proportions and architecture. The sta-
tion’s old wooden ticket booth still
curves along one wall behind the bar,
where cocktails include Victorian
punch served in copper punch bowls.
Smaller but, in our opinion, even
more splendid, is the bar of chef
Marcus Wareing’s new restaurant
there, the Gilbert Scott. Its ineffably
glamorous, romantic look is the work
of uber-designer David Collins – we
love the huge bells that hang from
the ceiling acting as light shades.
www.marriott.co.uk
HOTEL: Corinthia, Whitehall Place
BAR: The Bassoon Bart
Built at the end of the 19th century,
this old hotel building has been
turned into something very grand
indeed: a stupendously extravagant
hotel full of gleaming white marble,
colossal modernist chandeliers, vast
restaurants and a four-floor spa; but
not without controversy – its develop-
ment has been partially funded by
Libyan sovereign wealth money. The
marvellously-named bar is in the old
hotel’s music room, now a sleek,
debonair environment of 1920s cool
mixed with contemporary ultra-luxu-
ry. The Manhattan cocktails are
superb, and the “food cocktails” –
including the ingenious creation of
an oyster in a mini Bloody Mary – are
sheer class, as are the staff.
www.corinthia.com
HOTEL: Claridges, Mayfair
BAR: The Fumoir (above)
There may be those who have patron-
ised the bar at Claridges for ages with-
out knowing about its inner sanctum,
the Fumoir. Step through a mirrored
door into a world of svelte art deco –
all purple velvet seating, gleaming
Lalique glass panels, sculpted mirrors
and vintage photographs, plus a fabu-
lous horseshoe marble bar.
www.claridges.co.uk
HOTEL: Flemings, Mayfair
BAR: Flemings cocktail bar (below)
Another hotel that underwent a
recent refurbishment, Flemings has
emerged from relative obscurity, hid-
den away on a Mayfair side street, as a
place of serious cool. Its basement bar
is like no other, all bold colours, funky
furnishings and loud patterned car-
pets, yet intimate enough and chic
enough not to feel garish. It’s a sophis-
ticated place for a late-night tipple,
and the drinks, from tremendous
Pink Pigeon rum to its signature mar-
tinis, are worth the trip alone.
www.flemings-mayfair.co.uk
HOTEL: Dukes Hotel, St James
BAR: Dukes Bar
Talking of signature martinis, they
don’t come better than at the leg-
endary bar of Dukes hotel in St
James’s. Famously frequented by Ian
Fleming, the place is a hushed,
unfussy place dedicated to good con-
versation and phenomenal drinks.
www.dukes.com
HOTEL: The Connaught, Mayfair
BAR: The Coburg Bar and the
Connaught Bar
You could pick the marble-and-mir-
rors glitz and innovative cocktails of
the Connaught Bar, but we’d say the
connoisseur’s choice is the understat-
ed lounge-bar chic of the Coburg bar,
which opened in 2008. Not least
because of the remarkable “baccha-
nology” drinks menu, which is full of
historic cocktails and rare vintage
champagnes and wines. The atmos-
phere is low-key but ineffably smart,
as dapper and suave as a Savile Row
suit, and a marvellous place to while
away the hours as you work your way
through 300 years of cocktails.
www.the-connaught.co.uk
HOTEL: The Savoy, the Strand
BAR: The American Bar and the
Beaufort bar
The Savoy’s famous institution, the
American Bar, is all about the spirit
of the Roaring Twenties, with classic
American cocktails, live jazz piano
and smart deco stylings. Joining it
since the hotel’s refurbishment is
the altogether more ritzy Beaufort
Bar, in the space of the hotel’s old
cabaret stage and with a black-and-
gold interior that’s as theatrical as
they come. www.fairmont.com/savoy
Lifestyle | Food & Drink
27 CITYA.M. 12 MAY 2011
Create your own gourmet menu at the world’s greatest pop-up restaurant
festival. Savour outstanding dishes from 40 of London’s best restaurants and
explore fne food and wine from top producers. Celebrate summer in the city
with Taste of London, the culinary event of the season.
Restaurant line up: Asla de Cuba - 8arrañna - 8enares - 8entley's - 8occa dl Lupo / Gelupo - Chef Collln
8rown - Club Gascon - Corrlgan's Mayfalr - Plno - fouronlne - Gaucho - Gauthler Soho - Kal Mayfalr - L'Anlma
- L'Ltranger - Launceston Place - Le Caprlce - Le Gavroche - Maze - Opera Tavern - OPA - Paramount - Petrus
- Ouo vadls - Pefettorlo - Phodes 24 - Poux at The Landau - Scott's - Skylon - Tamarlnd - The Clnnamon Club
- The Modern Pantry - The Pltz Pestaurant - ¥auatcha - ¥ork & Albany - plus pop-up restaurants from
Actlon Agalnst Hunger and Malaysla Kltchen
Standard Ticket Ofer: 2 for £38 (Save £14) visit tastefestivals.com/london
or call 0871 230 7132 (Ouote C|T¥38)
V
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— A feast for the senses —
`8ooklngandtransactlonfees apply. Oner ls llmltedandapplles tostandardtlckets purchasedlnadvance for Thursday andPrlday sesslons. Oner calculated
ondoor prlce. Other tlcket types avallable at tastefestlvals.com/london.
16 - 19 JUNE 2011 - PLGLNT'S PAPK
The new Gilbert
Scott bar at the
St Pancras
Renaissance hotel
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WATCHDOG
BBC1, 8PM
Anne Robinson and Chris Hollins
investigate cases of over-charging and
poor service, while Matt Allwright
exposes another rogue trader.
THE SHADOWLINE
BBC2, 9PM
Gabriel and Joseph are both desperate
to track down the driver of Wratten’s
car first, but a mysterious figure is one
step ahead. With Christopher Eccleston.
EMMERDALE
ITV1, 7PM
Ella offers to help a concerned Adam
when he reveals his fears about John
and Moira losing their home. Aaron
accuses Hazel of giving up on Jackson.
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmLive Football League:
Nottingham Forest v Swansea
City (Kick-off 7.45pm). 10pm
Ringside 11pmSPL Round-Up
11.30pmTime of Our Lives
12.30amFootball League
2amPremier League World
2.30amRingside 3.30am
SPL Round-Up 4amFootball
League 5.30am-6amPremier
League World
SKY SPORTS 2
6pmLive PGA Tour Golf 12am
European Tour Golf 2am-5.30am
Premier League Darts
SKY SPORTS 3
7pmLive Premier League Darts
10.30pmNRL Fulltime 11pm
WWE: Late Night – Raw1am
WWE: NXT 2amThe Rugby Club
3amNFL: Total Access
4am-5amTime of Our Lives
BRITISH EUROSPORT
6pmMotoGP 8pmBritish
Superbikes 9.30pmCycling: Giro
d’Italia: Stage six from Orvieto to
Fiuggi Terme. 10.35pmMotoGP
11.05pmGP2 Series
12.05am-12.40am
Intercontinental Rally Challenge
ESPN
7pmESPN Kicks: Scottish
Premier League 7.15pmLive
Women’s Super League Football
10pmThe Ultimate Fighter 11pm
FIA GT1 World Championship
12amNBA Action 12.30amLive
NBA Basketball 3.30amESPN
Press Pass 4amSkateboarding
SKY LIVING
7pmCSI: Crime Scene
Investigation 8pmChuck 9pm
16 & Pregnant 10pmKatie 11pm
Criminal Minds 12amCSI: Crime
Scene Investigation 1.50am
Ghost Whisperer 2.40am
Charmed 4.20amNothing to
Declare 5.10am-6amMaury
BBC THREE
7pmThe Apprentice 8pm
Eurovision Song Contest 2011
10pmEastEnders 10.30pm
Russell Howard’s Good News
11pmFamily Guy 11.20pmFamily
Guy Presents: Seth and Alex’s
Almost Live Comedy Show
11.45pmSo What If My Baby Is
Born Like Me? 12.45amRussell
Howard’s Good News 1.15am
Eurovision Song Contest 2011
3.20amSo What If My Baby Is
Born Like Me? 4.20am-5.20am
The Apprentice
E4
7pmHollyoaks 7.30pmFriends
9pmThe Big Bang Theory
9.30pmHow I Met Your Mother
10pmThe Inbetweeners
11.05pmShameless 12.10amMy
Name Is Earl 1.05amThe
Inbetweeners 2amShameless
2.55amUgly Betty 3.35am
Heartland 4.20amThe Class
4.40am-6amSwitched
HISTORY
7pmHeir Hunters 8pmIce Road
Truckers 9pmPawn Stars 10pm
Storage Wars 11pmSwamp
People 12amPawn Stars 1am
Storage Wars 2amTrue Story
3amHeir Hunters 4amUniverse
5am-6amIce Road Truckers
DISCOVERY
8pmThrough the Wormhole
with Morgan Freeman 9pm
Flying Wild Alaska 10pm
Deadliest Catch 11pmSurviving
the Cut 12amBear Grylls: Born
Survivor 1amDeadliest Catch
2amFrontline Battle Machines
with Mike Brewer 3amHitler’s
Henchmen 3.50amWorld War
Two: The Complete History
4.40amHow the Universe Works
5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmBringing Home Baby 8pm
10 Years Younger: The Challenge
9pmI Didn’t Know I Was
Pregnant 10pmBorn on a Bad
Day 11pmA&E 12amI Didn’t
Know I Was Pregnant 1amBorn
on a Bad Day 2amA&E 3am10
Years Younger: The Challenge
4amLabour and Delivery
5am-6amBringing Home Baby
SKY1
8pmHawaii Five-0 9pmThe
Chicago Code: New series. Police
drama, starring Jennifer Beals
and Jason Clarke. 10pmHouse
11pmNCIS: Los Angeles 12am
Ross Kemp on Gangs 1.50amUK
Border Force 2.40amCold Case
3.25amA Town Called Eureka
4.10amSecret Life of Suburbia
5amBite Size Brainiac
5.15am-6amDon’t Forget the
Lyrics US
BBC2 ITV1 CHANNEL4 CHANNEL5
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmEastEnders: BBC News
8pmCHOICE Watchdog
9pmInside the Human Body
10pmBBC News
10.25pmRegional News
10.35pmQuestion Time
11.35pmThis Week:
Holiday Weatherview
12.25amSign Zone: The Death
of Bin Laden – Panorama
12.55amCountryfile
1.55amAntiques Roadshow
2.55amNeighbourhood Watched
3.40am-6amBBC News
6pmEggheads
6.30pmGreat British Menu
7pmCoast: The team explores
Ireland’s Atlantic coast.
8pmThe Animal’s Guide to
Britain: Chris Packham focuses
on coastal creatures.
Last in the series.
9pmCHOICE
The Shadow Line
10pmPsychoville 2
10.30pmNewsnight: Weather
11.20pmBusiness Nightmares
with Evan Davis
12.20amChildren’s
Craniofacial Surgery
1.20am-6amBBC News
6pmLondon Tonight
6.30pmITV News
7pmCHOICE Emmerdale
7.30pmHuman Rights and
Wrongs: Tonight
8pmEmmerdale
8.30pmCoronation Street
9pmLong Lost Family
10pmITV News at Ten
10.30pmLondon News
10.35pmPiers Morgan’s Life
Stories: David Hasselhoff 11.35pm
The Late Debate 12.05am
Grimefighters 12.30amThe Zone;
News Headlines 2.35amHuman
Rights and Wrongs: Tonight 3am
ITV Nightscreen 4.35am-5.30am
Jeremy Kyle: Morning Surgery
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmThree in a Bed
9pmA Very Dangerous Doctor
10.40pmThe Secret Millionaire
11.45pmThe Big Bang Theory
12.15amMusic on 4: The JD Set:
Manchester 12.30amAlbum Chart
Show Introduces – Jamie Woon
12.45am4Play: Oh Land 1amThe
Model Agency 1.55amSupersize vs
Superskinny Kids 2.50amA Year
Inside Number 10 3.45amHill
Street Blues 4.35amGreat British
Brands 4.50amWogan’s Perfect
Recall 5.15am-6amCountdown
6pmHome and Away
6.25pmOK! TV
7pm5 News at 7
7.30pmRough Guide To
8pmEmergency Bikers
9pmExtreme Fishing with
Robson Green – At the
Ends of the Earth
10pmImpossible?
11.05pmBanged Up Abroad
12.05amSuperCasino
4.05amMeals in Moments With
2008 Celebrity MasterChef winner
Liz McClarnon. 4.15amHow Not to
Decorate 4.55amCounty Secrets
5.10amWildlife The work of an
animal sanctuary. SOS
5.35am-6amHouse Doctor
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Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUE’S
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to find 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.
SUDOKU
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.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Resembling
an ape (6)
6 Add on,
supplement (6)
7 Bullets, etc
(abbr) (4)
9 Regions on
diametrically
opposite sides of
the Earth (9)
13 Mood disorder (5)
15 Ancient unit of
length (5)
17 Be valid (5)
20 Not marked by the
use of reason (9)
23 Identical (4)
24 Shelters from
light (6)
25 Most senior (6)
DOWN
1 Involuntary muscular
contraction (5)
2 Relating to a person
or thing regarded as a
representative symbol (6)
3 Follower of Hitler (4)
4 Expired (4)
5 Probabilities (4)
8 Adult male person (3)
10 Greyish-brown colour (5)
11 Monetary value (5)
12 Garden of Adam and Eve (4)
14 Edge tool used to cut
and shape wood (4)
16 Thrown carelessly (6)
18 Large nation (inits) (3)
19 Provide a remedy (5)
20 Neither good nor bad (2-2)
21 Close by (4)
22 Misplace (4)
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S T R O P S S N I P
T A I A I
E V E L O D R O M E
A C E L C O
M A N I A C A S H Y
V C R O S S A
F I R E G A M B I T
A C M O R E
B R E A K D O W N N
U P S U T
Y O B S C A S S I S
3 9 3 8
4 1 7 3 2 1 7 9
9 8 8 9 7 5 1
2 1 4 5 3 7 6 8
2 1 1 4 3 2
3 4 6 9
9 7 5 8 1 8
5 2 3 7 1 6 9 8
6 4 9 4 8 6 4
3 1 2 6 3 1 5 2
5 9 6 9
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
TRANSPIRE
Lifestyle | TV&Games
CITYA.M. 12 MAY 2011 28
Sport
29
BLATTER DEMANDS
SWIFT ANSWERS
FA PREPARE DOSSIER OF
FIFA WRONGDOING: P30
ENGLAND have named Test hopefuls
Ravi Bopara, James Hildreth and Eoin
Morgan in the Lions squad ahead of
next week’s tour match against Sri
Lanka at Derby.
Paul Collingwood’s post Ashes
retirement has created a vacancy in
England’s batting line-up and Bopara
and Morgan are the favourites to
replace the Durham stalwart, with
Somerset’s Hildreth also thought to
be in contention.
None of that trio have made
an irresistible case for Test
selection going on
early season form.
Bopara (right) at least
has one century to
his name, but
Hildreth averages
just over 20, while
Morgan has played
only once for
Middlesex as a
result of his stint
with Kolkata
Knightriders in
the Indian Premier League.
Leicestershire’s Samit Patel has
been offered the chance to re-launch
his international career having fallen
out of favour with the selectors fol-
lowing a number of fitness related
issues, while his highly-rated
county colleague James Taylor
is another intriguing call-up.
In the bowing depart-
ment Graham Onions,
who has taken 12 wick-
ets in his two county
matches this season, returns to an
England squad after a 15-month
absence through injury.
Fast bowlers Ajmal Shahzad and
Steven Finn will have the chance to
force their way back into the Test
picture, while Jade Dernbach will
look to take advantage of the
enforced absence of Warwickshire’s
Chris Woakes.
Meanwhile, Kevin Pietersen man-
aged only 30 for Surrey against
Cambridge University on his come-
back in what was his first innings
since a hernia injury cut short his
involvement in England’s World
Cup campaign back in March.
Bopara, Morgan and Hildreth set for Lions shootout
Take on the London Triathlon
with a little help from Daley
Results
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email sport@cityam.com
SPORT | IN BRIEF
Ireland handed World Cup boost
CRICKET: The ICC Cricket Committee
has unanimously recommended that
there should be a qualifying process for
the 2015 World Cup, enhancing the
prospect of Ireland competing at the
event. Last month, the ICC announced a
move to restrict the 2015 competition
to the sport’s 10 full members. “It’s
excellent news that another group of
people have put their support behind the
new for a qualifying process,” said
Warren Deutrom, Cricket Ireland’s CEO.
Weylandt death sparks probe
CYCLING: UCI president Pat McQuaid
says cycling’s governing body will inves-
tigate bike safety after the death of
Belgian rider Wouter Weylandt. The
Belgian rider died as a result of head
injuries after a high-speed crash during
the third stage of the Giro d’Italia. “We
will investigate and discuss with the
industry the rigidity and safety aspects
of bikes,” said McQuaid.
Paralympic ticket prices revealed
OLYMPICS: Around two million tickets
for the London 2012 Paralympics will go
on sale from 9 September. Prices will
start at £10 for adults and £5 for under-
16s and over-60s. More than 95 per
cent of the tickets will be priced at £50
or under.
Foster quits international scene
FOOTBALL: Birmingham and England
goalkeeper Ben Foster has announced
his shock decision to take an indefinite
break from international football. “I’ve
enjoyed my time with England and am
certainly not closing a door on the inter-
national side of things forever but this is
the right thing for me to do right now in
terms of club football,” he said.
Chabal axed from France squad
RUGBY UNION: France have left
Sebastien Chabal out of their provisional
squad for the World Cup. The 33-year-
old was dropped from the team after
their Six Nations defeat by Italy.
S
UPER-FIT City A.M. readers can
win the sporting chance of a
lifetime by becoming a member
of the Laureus team in this
year’s London Triathlon – and receive
special training from double Olympic
gold medallist Daley Thompson.
Triathlon is one of the fastest grow-
ing sports and one of the most excit-
ing. And on 6 and 7 August the
London leg of the Dextro Energy
Triathlon ITU World Championship
will take place over next year’s spec-
tacular Olympic course.
Individual amateur places are
already filled, but sports charity
Laureus, as the global charity partner
of the International Triathlon Union,
is teaming up with City A.M. to pro-
vide the chance for 25 readers to com-
pete alongside the greatest triathletes
in the world – and at the same time
raise funds for the Laureus Sport for
Good Foundation.
Double decathlon Olympic champi-
on Thompson will provide two train-
ing days for the Laureus / City A.M.
team and also be on hand to support
the racers on the day. He said: “This
allows sports enthusiasts to race at an
iconic London 2012 venue alongside
elite athletes, while raising funds for
the Laureus Sport for Good
Foundation. Last year I had great fun
training the Laureus team and I know
it will be the same this year with the
Laureus / City A.M. team.”
The race takes place over a dramat-
ic course involving The Serpentine,
Hyde Park, Constitution Hill and
Buckingham Palace. England’s
Brownlee brothers, Alistair and
Jonathan, will be looking to win the
men’s race to enhance their Olympic
prospects for next year.
Laureus / City A.M. team places, for
men’s or women’s races, are available
in two categories – Sprint and
Olympic distance.
Sprint is the category for the aver-
age competitor – a 750 metre swim, a
20 kilometre cycle ride and a five kilo-
metre run. There are a total of five
places available.
While Olympic is for those more
confident with their fitness – a 1,500
metre swim, a 40 kilometre cycle ride
and a ten kilometre run. There are 20
places available for these elite com-
petitors.
The Laureus Sport for Good
Foundation is dedicated to improving
the lives of young people through the
use of sport and members of the
Laureus / City A.M. team will each be
asked to raise £2,000 for the charity.
The funds raised by the Laureus /
City A.M. runners will go to help the
work of the Laureus Sport for Good
Foundation, whose mission is to use
sport as the means to tackle social
problems around the world. Laureus
currently supports 84 community
sports projects and since its inception
has raised more than £35m for proj-
ects which have improved the lives of
more than 1.5m young people.
Money-can’t buy
experience up for
grabs for 25 fit and
fearless City A.M.
readers
WHAT YOU GET
The 25 members of the Laureus / City
A.M. team will receive:

Two training days with Daley
Thompson

Training schedule put together by
Daley Thompson

Laureus branded T-shirt

Laureus branded triathlon suit

Opportunity to meet Laureus sporting
legends at the event

Team dinner with Laureus legends

Competitors are asked to raise £2,000
WHERE TO GO
City A.M. readers interested in taking
part should email:
campbell.gray@laureus.com
READ ON
For more information on the Laureus
Sport for Good Foundation please visit:
www.laureus.com
SIGN UP NOW
Competitors get to
run the London
2012 course a year
before the Games
BY JAMES GOLDMAN
CRICKET

FORMER European Ryder Cup cap-
tains Nick Faldo and Colin
Montgomerie have urged the
European Tour to redesign their logo
to include an image of the late Seve
Ballesteros.
The funeral of the Spanish golfer,
who passed away last week aged 54
following a long battle with cancer,
took place yesterday in Pedrena and
was attended by hundreds of mourn-
ers including his former European
Ryder Cup team-mates Sam Torrance
and Jose Maria Olazabal, former
cyclist Miguel Indurain and ex- Real
Mardi and Spain striker
Emilio Butragueno. The current tour
logo is a silhouette of Harry Vardon –
Open champion a record six times
between 1896 and 1914 – but both
Faldo and Montgomerie believe it
would be a fitting tribute to amend it
and incorporate the five-times major
winner.
“I think you will find it does
change and let’s hope it is sooner
rather than later,” said Montgomerie.
“I would vote for that immediately.
“When you talk about the European
Tour you talk about Seve and I think
it’s only right he should appear.”
Faldo added: “I think they (the
Tour) would have a very difficult time
not changing the logo. There will
never be another Seve. He had
absolutely everything.”
Euro greats call for logo
change as tribute to Seve
GOLF

A MAN has been arrested in connec-
tion with an attack on Celtic manager
Neil Lennon during his side’s 3-0 win
at Tynecastle last night.
The fan leapt from the Hearts sec-
tion of the main stand after Celtic’s
second goal and headed for Lennon,
who was standing on the touchline.
He connected with the former
Northern Ireland international
before being bundled to the ground
and arrested.
Scottish Football Association chief
executive Stewart Regan issued a
statement, saying: “Clearly this kind
of behaviour from supporters is whol-
ly unacceptable.
“The safety of players, club officials
and match officials is paramount on
or around the field of play, and this
clear breach of security is a matter I
will be discussing with SPL chief exec-
utive Neil Doncaster tomorrow.”
It is not the first time Lennon has
been targeted by opposition support-
ers this season.
In January a package addressed to
him containing bullets was intercept-
ed at a sorting office in Country
Antrim and two months later Celtic
confirmed Lennon was under 24-
hour security surveillance after a sus-
picious package was intercepted at a
Royal Mail sorting office in Ayrshire.
In April it emerged that Royal Mail
intercepted a total of two “viable” par-
cel bombs addressed to Lennon.
Fan arrested
after fracas
with Lennon
FOOTBALL

Celtic boss Lennon Pic: GETTY
THE FOOTBALL ASSOCIATION will sub-
mit a full dossier to Fifa after the world
governing body requested urgent evi-
dence of the corruption allegations
aimed at four members of its Executive
Committee by former England 2018
bid chairman Lord Triesman.
Fifa general secretary Jerome Valcke
wrote to the FA, addressing chairman
David Bernstein, demanding a copy of
Triesman’s evidence – submitted at
Tuesday’s Culture Media and
Sport Committee – as well as
any documents supporting
accusations that four mem-
bers made requests for
financial assistance or
favours during the bid-
ding campaign.
“For us to be in a posi-
tion to examine the situa-
tion thoroughly, and with
clear sightedness, we kindly
solicit you to remit us a complete
report [from] Lord Triesman [together
with] any or all documentary evidence
at his disposal,” wrote Valcke. “We wish
to underline the utmost urgency and
extreme sensitivity of the matter.”
FA general secretary Alex Horne has
responded by writing immediately to
Fifa including some evidence provided
by the committee and has promised to
submit the rest as soon as possible.
Fifa president Sepp Blatter said the
allegations had to be dealt with before
the body’s Congress in Zurich next
month.
“We have to do it very fast,” he said.
“We have a Congress to come and have
to deal with this matter before the
Congress and not just kick it out of the
minds of Fifa.
“We have to do it now, immediately,
and we have three weeks. We must
accelerate the movement, whether it is
for the good or for the bad.”
One of the men at the centre of
Triesman’s allegations, Fifa vice presi-
dent Jack Warner, who is alleged to
have asked for £2.5m in order to build
an education centre in his native
Trinidad & Tobago, was dismissive of
the accusation.
“First of all, I laugh like hell
because it took those guys
from December to now
[to say] that I have
£2.5m I believe. I never
asked anybody for
anything,” said
Warner (inset).
“When these guys
came here, we prom-
ised to help. I showed
them a place to put a
playground. They prom-
ised to come back but never
did.
“What is painful is that the FA spent
£19m in a bid, 24 persons in Fifa, one is
from England, seven of whom from
Europe. If the other 16 persons were
bad, how come the only vote they got
is the Englishman’s vote? How come
not even one person from Europe
voted for them?”
Sports minister Hugh Robertson,
meanwhile, reneged on a suggestion
that the FA would pull out of Fifa if
they did not addressed corruption.
After initially saying “all options are
open”, Robertson later said: “Leaving
Fifa is not on the agenda but all the
effort at Government level is on trying
to get reform at Fifa.”
BY JAMES GOLDMAN
FOOTBALL

Sport 30 CITYA.M. 12 MAY 2011
Blatter wants the
allegations dealt
with before next
month’s Fifa
Congress
Picture: GETTY
Ballesteros’ funeral took place in his home town of Pedrena Picture: GETTY
SPORT
DALEY
THOMPSON
Win the chance to
train with Olympic
legend: Page 29
Bopara, Morgan and
Hildreth primed for
England Test
shootout
Cricket: Page 29
FA prepare to
submit full
dossier on Fifa
corruption
Sport
31 CITYA.M. 12 MAY 2011
THE FULHAM SEASON TICKET 2011/2012
Prices start from £329 Adults and £95 Juniors.
Buy your season ticket before 23rd May for early bird discounts.
Monday 16th May – your best chance to grab a great seat. Non-renewed 2010/11
seats are being released to the general public from 16th May including some of
the best seats on offer at Craven Cottage.
Visit fulhamfc.com/seasontickets or call 0843 208 1234
How royal wedding fired
Thorpe’s hopes of fairytale
I
T MAY not be his primary motiva-
tion, but Ian Thorpe admits
attending the royal wedding last
month has only increased his
hunger to complete a fairytale of his
own when he returns to London next
year for the Olympics.
Thorpe is back in training five years
after hanging up his swimcap and
aiming to add to his five gold medals
at the Games, where it is hoped he
will face the man who has replaced
him as the world’s greatest, Michael
Phelps. The Australian, 29, believes he
can still beat the best, insists he is
back in the pool because he loves it
rather than for any reward, and can-
not wait to compete in London’s new
aquatic centre. On top of that,
Thorpe, who was invited to the royal
wedding by his friend Prince William,
says the extravagance of that occa-
sion has whetted his appetite for
London 2012.
“It was unbelievable, a surreal
experience. I’ve never seen London
like it. Now I’ve seen how you do a
wedding I’m interested in how you do
an Olympics,” joked Thorpe, who was
in Hackney yesterday to open an out-
door gym for his sponsors Adidas.
London is a recurring theme in his
return. It was on a flight here last
autumn that he realised, albeit reluc-
tantly, that he yearned to swim again.
“I’d thought about it before but usu-
ally shut myself down in 10 seconds,”
he says. “I had every answer why I did-
n’t want to do it. Then I was flying
from Chicago to London and thought
about it; the answers I had weren’t
that good this time. So I made a deci-
sion to start swimming. I actually
went and saw someone to try and
convince me not to do it – that didn’t
work – so I started training.”
Thorpe gave himself three months
to prove to himself he could get back
to his best; after two he knew he
could. He is improving but still short,
admitting he wouldn’t be ready if he
were competing in July’s world cham-
pionships. He doesn’t like adding to
the hype surrounding a contest with
Phelps in the 200m freestyle, the
event they share, and gushes about
Michael Schumacher for returning to
Formula One on his own terms.
“I’m glad I’m swimming again and
enjoying it,” he says. “When we have
heroes in sport we want them to
retain that glimmer and want to take
ownership of their performances,
and we forget that person enjoys
what they do. People talk about
Schumacher. I look at him and clearly
he enjoys what he’s doing and
although the result hasn’t been what
people expected, I have tremendous
admiration that he continues.”
He plans to swim on beyond
London 2012 regardless of his success
but admits he is putting a legacy as
one of sport’s all-time greats at stake.
“If I look at it from a career point of
view, it’s probably a terrible thing to
do,” he says. “But it’s a decision that
comes from the heart, not the head.”
Ian Thorpe was speaking at the Hackney
adiZone, one of 50 outdoor multi-sport
giant gyms that have been installed across
the UK by London 2012 sponsor adidas. The
adiZone project aims to get more people
active and is a true sporting legacy of the
London 2012 Olympic & Paralympic Games.
Frank Dalleres hears
swimming icon on
why his comeback
for London 2012 is
a huge gamble
Thorpe is looking to add to his five Olympic golds next summer Picture: GETTY
I
GATHER some Tottenham sup-
porters have been criticising
manager Harry Redknapp for a
loss of form that has seen them
fail to qualify for next season’s
Champions League. They must be
completely barmy. Spurs have never
had it so good, or at least not in
recent memory.
Of course it’s disappointing not
to be in with Europe’s big boys
again next year, if you look at in iso-
lation. But clearly some fans have
become slightly spoiled by their
Continental adventure this season.
You always get that to some
extent. When we won the league
at Everton it became harder to
keep the faithful happy. You
reach a high level and then
they expect it. It’s human
nature.
Tottenham can’t say
they’ve had a poor
season, however.
They reached the
quarter-finals of
the Champions
League on their
debut in the
competition; to
have managed a
top four place
would have been
monumental.
In the end the
burden of playing
the best in Europe
and having to con-
sistently raise their
game to very, very
high levels took its
toll and they ran out of
steam, with just one win
from their last 10 Premier League
games.
They were also hit hard by
Gareth Bale’s fitness problems. He
has won matches on his own for
them and other players feed off
that. But he’s such an athlete and
relies on his explosive pace that
when not in absolutely peak condi-
tion he is not as effective.
Manchester City, who pipped
them to the last qualifying place,
had their own distraction in the
Europa League, but Roberto
Mancini has been able to assemble
a squad of huge depth to cope with
challenging on all fronts.
NEW SIGNINGS
The problem for Spurs is that com-
petition for the top four is only
going to get tougher next season.
As well as the current incumbents,
Liverpool are a force again and I
have a funny feeling that Everton
could just be back in the mix.
That means Tottenham need to
arm themselves with new signings,
chief among them a striker of the
highest calibre. They’re not that
hard to find, just look at the
top of the goalscorers’ charts
in Europe, pick your favourite
and check his availability.
They could also use an alter-
native to the 4-4-2 that
Harry seems to love.
Being able to play 4-3-
3 with wide for-
wards who can drop
back into midfield
would make them
less predictable,
and prevent their
central midfielders
from being out-
numbered. If I
have one criti-
cism of Redknapp
(left) it’s that they
could use more
variety to their
play, and therefore
a few more players
familiar with anoth-
er system – but
that’s all.
Spurs fans disgruntled
with Redknapp are in
need of a reality check
FOOTBALL COMMENT
TREVOR STEVEN
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