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BAA puts for sale sign
over Edinburgh airport
BAA announced plans yesterday to sell
Edinburgh airport, bowing to the UK
Competition Commissions (CC) ruling
to sell one of its Scottish airports in
order to increase competition.
The decision comes after a two-year
battle between BAA and the CC, which
in 2009 ruled that BAA, owned by
Spanish infrastructure giant Ferrovial,
exerted a dominant hold on UK air-
ports and told it to sell Stansted and
either Glasgow or Edinburgh airport.
Analysts at the Royal Bank of
Scotland said that in choosing to sell
Edinburgh, a stronger asset compared
to Glasgow, BAA may be opting for a
sale that would have a higher chance
of being profitable.
The airport operator, which also
owns Heathrow, Southampton and
Aberdeen, said it plans to agree a sale
by the summer 2012.
It is still disputing the watchdogs
final ruling in July requiring it to sell
off Stansted. In 2009, the group was
pressured to sell Gatwick for 1.5bn.
BY KASMIRA JEFFORD
TRANSPORT

MORGAN Stanley surprised investors

by staying in the black yesterday,
although it did so in part only because
of an accounting gain that has seen
banks book huge earnings from the
lower cost of their debt.
The bank reported a net profit of
$2.2bn (1.4bn) and pre-tax earnings of
$3.68bn for the third quarter of this
year, compared to $801m in 2010.
But $3.4bn of the 2011 figure came
from the accounting gain: stripping
out that effect gives a pre-tax profit of
some $280m and a small net loss.
However, even without the boost
from accounting vagaries, markets
were pleasantly surprised by the
results from a bank whose share price
has recently been in the grip of mar-
ket rumours about its exposure to
troubled European countries.
The bank reported $2.11bn in net
exposure to Greece, Ireland, Italy,
Portugal and Spain and negative net
exposure to France due to the high
value of its hedges. The lions share of
its risk is in Italy, where net exposure
is $1.79bn, while it has $287m in net
exposure to Greece.
Despite what chief executive James
Gorman called a turbulent period,
the bank saw its net assets under man-
agement swell by $17.5bn.
It reported putting aside $3.69bn to
pay staff, the same amount as during
the third quarter of 2010.
BY JULIET SAMUEL
BANKING

Crispin Odeys hedge fund is one of many to have suffered this autumn
THE WOES of hedge fund managers
were underlined yesterday when
Crispin Odeys flagship European
vehicle became the latest to reveal
steep losses.
In a letter to clients, seen by City
A.M., Odey Asset Management said its
European fund lost 8.3 per cent last
month, after some of its long posi-
tions, such as Sky Deutschland, per-
formed poorly.
The funds performance improved
slightly this month and is down by 16
to 17 per cent so far this year, David
Stewart, chief executive of Odey Asset
Management, told City A.M.
The Odey MAC hedge fund has per-
formed two to three per cent better
than its European sister product, he
added, meaning it is down 13 to 15
per cent.
Stewart said Crispin Odey had been
very clear why he is long on equities
referring to the founders bullish
stance on stocks.
Investment is a long-term game
(but) nobody is relaxed when you are
doing poorly, he added.
Odeys firm, which made millions
during the financial crisis by shorting
stricken City banks, has seen better
performance elsewhere, however.
James Hanburys absolute return
fund and Michele Ragazzis Giano
Capital fund are both up by four to
five per cent so far this year.
It comes only days after billionaire
American investor John Paulson
warned of the possibility of mass
redemptions at his Advantage Plus
fund and Man Group revealed its flag-
ship computer vehicle had been
caught out by a rally in equities and a
sell-off in bonds.
The average equity hedge fund lost
5.65 per cent of its value in September
and is down nearly 10 per cent this
year, according to Hedge Fund
Research.
Sarah Ing, an analyst at Singer
Capital Markets, said the recent per-
formance of hedge funds had been
poor.
There have been some funds with
very low returns this year, like
Paulson and Odey. There is a lot of
uncertainty, causing a lot of whip-saw-
ing in the environment. It is a very dif-
ficult time.
Yesterday Man suffered another
blow when Raffaele Costa quit as
deputy head of sales and marketing
for the US and Europe.
He was previously an executive at
GLG Partners and joined Man when it
bought its rival for $1.6bn (1.02bn)
last year in an attempt to lessen its
reliance on its quant fund AHL. He is
leaving to launch a property invest-
ment firm but will continue to advise
the group.
Man has been the subject of
takeover talk after its shares tanked
on poor performance at both its GLG
funds and AHL.
ODEY BECOMES
LATEST VICTIM
OF HEDGIE ROUT
BY PETER EDWARDS
HEDGE FUNDS

www.cityam.com FREE
Morgan Stanley posts a
profit on accounting gain
ARSENAL AND
CHELSEA WIN
CAPITALS CLUBS
SEAL VICTORIES
IN EUROPE P34-35
BUSINESS WITH PERSONALITY
Issue 1,493 Thursday 20 October 2011
Certified Distribution
29/08/11 till 02/10/11 is 98,447
THE iPHONE THAT STOPS YOU
FORGETTING YOUR LUNCH
WE REVIEW THE 4S P29
News
2 CITYA.M. 20 OCTOBER 2011
Citi pays out
$285m fine
CITIGROUP settled with the US
Securities and Exchange
Commission (SEC) for $285m last
night over a case involving deriva-
tives sold before the financial crisis,
saying it was pleased to put this
matter behind us.
The SEC had accused Citi of negli-
gence when it advertised certain
derivatives to customers without dis-
closing that it had helped to select
the underlying assets in the instru-
ments and had short positions in
some of them.
Citi denied the accusation and
argued that while it had short posi-
tions on some of the collateral for the
derivatives, it also held $100ms
worth of the instruments itself in var-
ious subsidiaries and had long posi-
tions in other, similar products.
The derivatives in question were
collateralised debt obligations (CDO)
sold at the height of the property
boom in 2006 and early 2007, mak-
ing the case just the latest in a string
of suits generated from the fallout of
the financial crisis.
Citi was not forced to admit any
wrongdoing in the settlement.
US authorities in particular are
keen to go after banks for what they
say was inadequate disclosure of pos-
sible conflicts of interest in selling
many complex financial products.
BY JULIET SAMUEL
BANKING

Savers are being hit by brutal forces

IF you want to feel the full effects of
inflation, try buying a bar of choco-
late at your local newsagent, a sand-
wich near your office or even a shirt
for work. Its incredibly depressing.
Prices have shot up. For savers and
investors, the name of the game
remains wealth preservation: how do
you prevent inflation at a 20-year
high, increasing tax and global uncer-
tainty from wiping you out? Even
hedge funds are failing to keep up,
with many highly paid managers fail-
ing to deliver an acceptable return, as
we report on page one.
This challenge is made even harder
by the fact that capital gains tax,
which this government increased to
28 per cent, is no longer indexed to
inflation. This has introduced a
deeply perverse and unfair bias into
the tax system, which this newspaper
warned about at the time. Imagine
that you owned an asset for the past
year that you manage to sell for a 5.6
per cent gain the rate of retail price
index inflation. In real terms, you are
not better off; yet you still have to pay
a 28 per cent tax on the capital gain
above the tax-free threshold. You are
paying tax on a meaningless infla-
tionary gain, which means that the
tax system has turned into a wealth
tax, forcing people to hand over a
chunk of their assets rather than a
chunk of their gains.
So what can be done? History is of
limited use. Looking back over the
past 38-odd years, Fidelity, the fund
manager, has calculated annual
returns on different asset classes
bonds, stocks, commodities and cash
depending on the phase of the eco-
nomic cycle, such as reflation, recov-
ery, overheating or stagflation. Given
recent events, the year ahead will
most likely be characterised by
stagflation, in the UK at least.
Historically, under stagflation, bonds
lost 1.1 per cent a year, stocks lost 14.9
per cent, commodities surged 29.6
per cent and cash lost 0.8 per cent.
That pattern is pretty clear yet
unfortunately it is of little help.
Commodities are unlikely to rocket
next year; globalisation has broken
some historical correlations; and
equities would only lose this much in
the event of a real Eurozone implo-
sion or banking meltdown. There are,
unfortunately no simple answers.
Gold will do well if inflation
remains high and central banks con-
tinue to boost liquidity around the
world but the yellow metals recent
woes were caused by investors being
forced to sell out as a result of margin
calls triggered by declines in other
assets. Once again, a key traditional
relationship broke down. Other com-
modity prices will depend on how
well China and the US are doing;
there is growing evidence that
growth is slowing in China, with pos-
sibly traumatic consequences.
Equities will continue to be all over
the place but stocks that pay a high
dividend are likely to outperform.
Gilt yields could fall further thanks
to QE, pushing up capital values but
that would merely further fuel a bub-
ble that will eventually end in com-
plete disaster. One story last night
showed just how absurd and irra-
tional the situation has become:
Goldman Sachs has just sold $500m
worth of 50-year bonds paying just 6.5
per cent interest. Yes, you read that
right. Investors were so desperate for
yield that they lapped up the issue.
The cost of borrowing has fallen to
absurdly cheap levels, and savers are
the ones who are paying the price.
Grim times.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
THE European Commission is set to
announce an overhaul of trading plat-
forms and penalties for financial
crime this morning as its head, Michel
Barnier, unveils two new hefty tomes
of regulation.
The Market in Financial
Instruments Directive II (MiFID II) will
target commodities derivatives trad-
ing by handing national and EU regu-
lators new powers to slap bans on any
market practice they see as damaging.
It could also impose limits on the
volume of any individual position and
will force aggregate positions in each
kind of commodities derivative to be
declared to better assess the role of
speculation in these markets.
More generally, it will propose mak-
ing all private derivatives trading plat-
forms subject to the same regulations
as centralised clearing houses.
Alongside MiFID II, Barnier will pub-
lish the latest Market Abuse Directive
(MAD), which will demand new pow-
ers to treat insider trading and market
manipulation as crimes. MORE: P26
BY JULIET SAMUEL
REGULATION

EU unveils trading rules

Commissioner Michel Barnier is cracking down on derivatives markets
NEWS | IN BRIEF
Cable cant rule out double dip
Business Secretary Vince Cable said yes-
terday that Britains faltering economy
could slip back into recession, but govern-
ment action to boost growth is likely to
help the country avoid another downturn.
During an interview with ITV news, Cable
was asked if he could promise that Britain
would not experience a double-dip reces-
sion. He said: I can't do that. We know
conditions are very difficult but the gov-
ernment is doing the best it can to protect
people.
Vote on EU referendum moved
Downing Street yesterday brought for-
ward a House of Commons vote on
whether a referendum on Britains mem-
bership of the EU should be held, as fears
grow that some Tory MPs were planning a
rebellion in Prime Minister David
Camerons absence. The debate was origi-
nally scheduled for next Thursday, 27
October, but will now take place on
Monday. The referendum would ask if the
UK should stay in the EU, leave, or renego-
tiate the terms of its current membership.
Both the Prime Minister and William
Hague will be in Australia next Thursday,
but in the Commons on Monday.
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editors
Code of Practice, a copy of which can be found at
www.pcc.org.uk
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of City A.M. Please ring 0207 015 1230, or email
distribution@cityam.com
Citi, led by Vikram
Pandit, will stump up
$285m over debt
instruments sold during
the property boom.
4th Floor, 33 Queen Street, London, EC4R 1BR
Tel: 020 3201 8900 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Jo Simpson
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
EU PUTS BANKS SHORTFALL AT JUST
90BN
Europes grand plan to strengthen
its banking system is set to fall well
short of current market expecta-
tions identifying a capital shortfall
of less than 100bn (87bn) that
must be made up over the next six
to nine months, according to the
latest official estimates. The EUs
estimate of the necessary recapital-
isation effort compares with a
recent IMF report that identified a
200bn hole in banks balance
sheets.
SHADOW FALLS OVER SOLAR SUBSI-
DIES
Subsidies for households to install
solar panels are about to be slashed
by ministers in a controversial
mood that could make a further
dent in the coalitions green creden-
tials. Ministers are also expected to
announce today a shake-up of wind
power incentives from 2015, which
will cut subsidies for onshore wind
but improve state help for wave and
tidal power.
ARM UNVEILS NEW CHIP FOR $100
SMARTPHONE
ARM Holdings has unveiled a new
microchip design that will allow
the development of smartphones
costing less than $100 (63) by 2013.
The UK-based company, whose
designs are used in more than 90
per cent of the worlds mobile
phones, has produced a micro-
processor achitecture one-fifth the
size of those used in smartphones
today, and five times more efficient.
COSALT SHARES SHED MORE THAN
HALF VALUE IN A DAY
Shares in Cosalt more than halved
after the engineering services com-
pany warned that full-year revenues
would be significantly lower than
the boards previous estimates.
ST PAULS ASKS ANTI-CAPITALIST PRO-
TESTERS TO GO
St Pauls Cathedral could be closed for
the first time in memory because of
the anti-capitalist protest taking place
on its doorstep. Cathedral authorities
asked the growing number of Occupy
London Stock Exchange protesters
who have pitched tents outside the
main entrance to move on last night.
MILLIONS IN AID LOST TO FRAUD AND
CORRUPTION
The department responsible for over-
seas aid is losing millions of pounds of
taxpayers money through fraud and
corruption because of poor financial
management, an influential commit-
tee of MPs has found. The Public
Accounts Committee said that the
potential for fraud will now be much
higher because Britain is refocusing its
overseas aid to war-torn and difficult
countries.
PRUDENT SAVERS HIT BY EXCESSIVE
HIDDEN FEES ON PENSIONS
Prudent savers are having their
retirement funds eaten away by
excessive hidden fees, the organisa-
tion representing pension funds will
admit. The National Association of
Pension Funds says that fees are too
high and that consumers face an
eye wateringly complex system of
hidden levies.
SHOP DIRECT WARNS OF BRUTAL
2012 DESPITE SEEING SALES RISE
Shop Direct, owner of the
Littlewoods shopping business, has
warned of a brutal 2012 after post-
ing an increase in sales last year. The
company, the country's biggest cata-
logue and online retailer, increased
sales by 5.5pc to 1.94bn in the year
to April 2011, helped by the success-
ful introduction of the Isme brand,
aimed at older women.
AT UBS, CHIEF PUSHES NEW CUTS
Under pressure to revive UBSs for-
tunes and help the firm recover from
a rogue-trading scandal, the Swiss
banks interim chief is preparing to
shrink its once high-flying investment-
banking unit. Sergio Ermotti, who has
been at the helm for less than a
month, has ruled out a sale or spinoff
of the investment bank but has decid-
ed to significantly reduce its scope and
size.
BOFA'S BIG MORTGAGE SETTLEMENT IS
MOVED TO US COURT
A federal judge has ruled the $8.5bn
settlement between Bank of America
and several high-profile investors who
lost billions on mortgage-backed secu-
rities will be heard in federal court.
The ruling goes against BoA and Bank
of New York Mellon, the trustee in the
case, which had both wanted the set-
tlement to remain in New York state.
WHAT THE OTHER PAPERS SAY THIS MORNING
MOODYS downgraded five of Spains
biggest lenders last night, including
Banco Santander, following on from
its downgrade of the sovereign state on
Tuesday night.
The other banks downgraded were
BBVA, CaixaBank, La Caixa and
Confederacin Espanola de Cajas de
Ahorros (CECA). The agency limited its
actions to Spains biggest, systemically
important banks because it said they
were most affected by the sovereign
downgrade due to a higher likelihood
of bailout should they fail.
Moodys also downgraded 16
Spanish regional authorities.
EBAY reported profit that matched
Wall Street estimates yesterday, but
gave a restrained outlook for the rest
of the year, sending its shares lower.
Excluding stock-based compensa-
tion expenses and other items, the
operator of the largest online market-
place reported profit of $628.2m
(398m), or 48 cents a share, in the lat-
est period. Revenue climbed 32 per
cent to $2.97bn.
Third-quarter net income was
$490.5m, or 37 cents a share, com-
pared to $432m, or 33 cents a share, a
year earlier. EBay was expected to earn
48 cents a share on revenue of $2.91bn.
Not a spectacular quarter, said R J
Hottovy, equity analyst at Morningstar.
It was essentially in line, which may
have disappointed the market.
EBay forecast fourth-quarter profit
of 55 cents to 58 cents a share, while
analysts were looking for 58 cents a
share. The company also forecast full-
year revenue of $11.5bn to $11.6bn and
full-year profit of $1.98 to $2.01 a
share.
When eBay reported second-quarter
results in July, the company forecast
full-year revenue of $11.3bn to $11.6bn
and full-year profit of $1.97 to $2.00 a
share.
Investors were assuming there
would be upside surprise in earnings
or the guidance, said Fred Moran, an
analyst at Benchmark Capital.
They maintained their full-year
forecast essentially, which reflects a lit-
tle caution around the global econo-
my, Moran added. Management
could increase forecasts later in the
year, but things are too volatile right
now to stick ones neck out.
EBay president and chief executive
John Donahoe said more and more
customers were choosing to shop
through smartphones, with the com-
pany expecting mobile commerce to
generate almost $5bn in merchandise
volume this year.
Mobile is one way online and
offline shopping are blending into a
single commerce environment, said
Donohoe.
We are focused on enabling com-
merce, helping consumers shop any-
time, anywhere, and being the
commerce partner of choice for retail-
ers of all sizes.
EBay shares fell four per cent to
$31.90 in after-hours trading.
EBay outlook
cautious as
revenues rise
INTERNATIONAL entrepreneur Robert
Gaines-Cooper lost his UK residency
appeal in the Supreme Court yester-
day, in a case that could have repercus-
sions for other non-domiciles facing
back-dated tax bills.
The court ruled in favour of HMRC
that the millionaire must pay tax
under UK law, despite having lived in
the Seychelles since 1976.
Commentators said the judgement
highlighted the need for more clarity
on UK laws on tax residence, which are
due to be reformed with the introduc-
tion of a statutory residence test in
April 2012.
The introduction of a statutory res-
idence test ... cannot come soon
enough for anyone contemplating
working, living or retiring abroad,
said Ronnie Ludwig, partner in the pri-
vate wealth group at accountancy
firm Saffery Champness.
Key tax ruling may
hit UK non-doms
AMERICAN Express posted higher-
than-expected quarterly net income
on yesterday, as borrowers used their
cards for more purchases.
The New York-based credit card com-
pany said third-quarter net income
was $1.2bn, or $1.03 per share -- up
from $1.1bn, or 90 cents per share, a
year ago. That was above analysts aver-
age estimate of earnings of 96 cents
per share. Total revenue, net of interest
expenses, rose nine per cent to $7.57bn
from $6.97bn a year earlier.
But costs were up on its card mem-
ber program and personnel costs, with
total expenses up about 13 per cent.
AmEx profit up
on record spend
Santander is
downgraded
BY HARRY BANKS
TECHNOLOGY

BANKING

FINANCIAL SERVICES

Ebay president
John Donahoe said
mobile commerce
revenues were on
the up
Picture: REUTERS
BY ELIZABETH FOURNIER
TAXATION

News
3 CITYA.M. 20 OCTOBER 2011
News
4 CITYA.M. 20 OCTOBER 2011
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E C N E L L E C X
THE US economic outlook grew dim-
mer in September, leading businesses
to be wary of spending and of building
up inventories ahead of the holiday
sales season, the Federal Reserves
Beige Book revealed last night.
US stocks fell after the Beige Book
was released, while Treasury debt
prices rose on its glum economic out-
look. In more positive signs of activity
firming in the third quarter, stronger
housing starts in September have led
some analysts to raise their forecast for
third-quarter growth.
Housing starts rose a surprising 15
per cent month on month in
September, separate data showed yes-
terday.
And the Beige Book contained some
bullish economic news, finding that
consumer spending was up slightly in
most districts, led by auto sales and
tourism. There was also some increase
in business spending, notably for con-
struction and mining equipment and
for new-car inventories.
Meanwhile, consumer price index
(CPI) inflation in the US hit 3.9 per
cent last month, its highest rate for
three years. While total CPI was up 0.3
per cent, core inflation -- which
excludes energy and food costs -- rose
by just 0.1 per cent.
Economic fears stalling
US recovery: Beige Book
BY HARRY BANKS
US ECONOMY

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CONSTRUCTION output growth suf-
fered a major drop in August, data
from Eurostat revealed yesterday.
Eurozone construction production
grew by 0.2 per cent in the month,
according to initial estimates. The
expansion represents a decline in
growth from Julys 1.8 per cent
increase in output. Across the whole
EU, output did not grow at all in
August. In July the Unions construc-
tion sector expanded by 0.9 per cent.
Eurostats construction index shows
the Eurozones production was 15.6
per cent lower in August than in the
same month in 2005. For the whole
EU, the decline is 9.9 per cent.
Construction
output growth
falls in Eurozone
EUROZONE

EC set to bolster
infrastructure
INFRASTRUCTURE spending across
Europe could receive a 50bn (43.6bn)
boost from 2014 to 2020, if a European
Commission (EC) proposal announced
yesterday works as planned.
The money will be spent on trans-
port, digital communications and
energy projects.
A pilot phase in 2012 and 2013 will
see 230m spent. A total of 32bn will
go to transport projects over the whole
period, towards the 250bn the
Commission claims needs to be spent
by 2020.
EUROZONE

FRENCH president Nicolas Sarkozy

flew to Germany last night for crisis
talks ahead of this weekends summit,
which aims to address the Eurozones
woes.
He wants the European Financial
Stability Fund (EFSF) to become a bank,
tapping the European Central Bank
(ECB) for funds to help governments.
Germany and the ECB oppose the
suggestion, leading Sarkozy to tell the
French parliament yesterday that he
was heading to Germany to convince
chancellor Angela Merkel and her
coalition partners.
On Tuesday she dampened hopes of
a plan to save the euro emerging this
weekend, saying One cannot resolve
sovereign debt with one summit. It
will take difficult, long-term work.
One suggestion that has gained trac-
tion is the idea that the EFSF should
insure a portion of the losses on sover-
eign bonds, providing insurance for
investors. That could leverage the fund
from 440bn to 1 trillion or more.
However, economists are sceptical.
I would be surprised if the leverage
amounted even to 1 trillion, which
would only cover peripheral refinanc-
ing needs for the next two years, and I
do not think the crisis will be over by
then, said Berenberg Banks Christian
Schulz.
However, if banks agree to a 50 per
cent haircut, Greeces national debt
will fall to 120 per cent of GDP, similar
to Italian levels. They could slow tax
rises and focus on structural reforms.
CEBRs Douglas McWilliams said
there is hope bank refinancing may be
agreed. At the national level, provi-
sion needs to be made to bail out and
nationalise bust banks. At the EU level
funding needs to be made available to
bail out the bust banks so that they
can keep trading by Monday, to stop
more going the way of Dexia.
Summit hope
plummets on
bailout rows
BY TIM WALLACE
EUROZONE

News
5 CITYA.M. 20 OCTOBER 2011
CITY VIEWS: ARE YOU CONFIDENT THE EURO WILL SURVIVE? Interviews by Phoebe Torrance
No, I think the Euro has too many
fundamental flaws and is too complex
to survive. It was doomed to begin
with and I would like to see it go.
PAUL SMITH | INCEPTA
I dont think that the euro will survive this time; possibly in many generations time there could be
an equivalent that could work, but currently we have been forcing together too many different cul-
tures too quickly for the euro to succeed.
PETE GODDERS | LLOYDS OF LONDON
* These views are those of the individuals above and not necessarily those of their company.
A GENERAL strike failed to dissuade
Greeces socialist party from voting
through new austerity measures last
night, though more votes are required
today to make the bill law.
Around 100,000 protestors and strik-
ers (pictured, left) gathered to oppose
the measures.
However, all 154 of the ruling social-
ist PASOK partys deputies voted in
favour of the bill a majority of the
300 members of parliament. The gen-
eral strike turned violent yesterday, as
protesters clashed with police and
burned piles of uncollected rubbish.
Protests are continuing today as
deputies vote on the austerity meas-
ures article-by-article, and then on the
whole package.
If the measures are not voted
through, the next 8bn tranche of aid
from the EU and International
Monetary Fund will not be received. If
that does happen the government will
run out of money by the middle of
next month.
The government needs to be able to
fund its debts to avoid triggering a
default, which could have enormous
ramifications for banks and investors
who are exposed to the bonds.
The controversial bill includes fur-
ther measures to cut public sector
wages and employment levels.
Pensions will also be cut back, as will
wage bargaining rights.
Picture: REUTERS
Initial approval
given for more
Greek austerity
GREEK ECONOMY

CHRIS GAZE | VERINT

Yes. As a group of countries we trade
together, our economies are interdependent
and it provides collective security. Smaller
economies need the euro to give them a
chance of economic survival and it helps
larger economies to trade more easily.
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THE BANK of Englands new phase of
quantitative easing (QE2) could rise to
100bn in purchases, minutes to its
October meeting revealed.
All nine members voted for a 75bn
rise in the asset purchase programme,
believing a recession in the Eurozone
to be likely, which would damage the
UKs economic growth prospects.
The outlook for the US and Asia was
also subdued, the Banks Monetary
Policy Committee (MPC) noted.
Depending on developments in the
euro area and financial markets, the
size of the stimulus could be adjusted
in either direction, the minutes read.
The MPC considered extending the
existing 200bn of assets purchased by
a further 50bn to 100bn.
The first 200bn of QE pushed down
long-term interest rates but at the
cost of CPI inflation rising by 0.75 to
1.5 per cent, the Bank estimates.
Septembers CPI inflation figures
which came in at 5.2 per cent were
not known when the MPC was making
its decision, though it did expect infla-
tion of above five per cent.
However, the MPC believed domes-
tically generated inflation remained
contained. Inflation was likely to fall
back sharply in 2012 as temporary fac-
tors fall out of the figures.
The minutes said low wage growth
and weak consumer spending, which
was only a little higher in the second
quarter of 2011 than at its trough two
years earlier influenced the MPCs
view that inflation will near the two
per cent target in the medium term.
Unity on QE2
as MPC mulls
100bn spree
GEORGE Osbornes spending plans are
keeping closely to schedule because of
the unexpectedly rapid cuts in public
sector jobs, according to a PwC report
out today.
This time last year the Office for
Budget Responsibility forecast 400,000
state jobs would be lost by 2015-16.
But local authorities anticipated
this before the 2010 election, and
began the process early. That means
290,000 jobs were cut in the 18
months to June 2011, the report said.
By now the figure is over 300,000,
chief economist John Hawksworth
told City A.M. Natural wastage, as staff
leaving are not replaced, goes a long
way towards cutting headcount, but
job losses accelerated in quarter three.
The government has a good chance
of meeting its target of eliminating
the structural deficit by 2015-16,
despite the slowdown in economic
growth to one per cent this year.
Progress made so far means there
is room to slow down capital spending
cuts to provide a minor fiscal boost.
One problem remains the govern-
ments communications strategy, the
report found.
The government must explain
there is no miracle policy to create
jobs it is the private sector which
boosts employment, Hawksworth
said.
PwC: job losses
keep deficit plan
on schedule
MPC governor Sir Mervyn King voted for 75bn more QE to boost demand Picture: REX
BY TIM WALLACE
UK ECONOMY

UK ECONOMY

News
6 CITYA.M. 20 OCTOBER 2011
ANALYSIS l Consumer price inflation hit
5.2 per cent in September
%
5.2%
02 03 04 05 06 07 08 09 10 11
6
4
3
5
2
1
0
UK inflation
- CPI YoY
change
Employment growth falls
as demand recovery stalls
GROWTH slowed in consumer spend-
ing, manufacturing and investment
over the last month according to the
Bank of Englands agents summary of
business conditions, out yesterday.
The official survey measures the
state of the economy across the coun-
try and informs the monetary policy
committee (MPC) in making its inter-
est rate decisions.
Consumer demand growth is slug-
gish as consumers are increasingly
conscious of avoiding waste, with
households driven by value.
Low demand has forced manufac-
tures to scale back investment plans,
and output growth in the sector is
down as households economise.
Such conditions have impacted on
private sector hiring intentions, which
also slowed. However, investment in
younger workers is rising use of
apprenticeships was increasingly
widespread, to avoid future skills
shortages, the study found.
Other positive news came in trade.
Exports to Germany and various
emerging economies remained
robust, helped by the level of sterling
and product innovation. The 12-
month outlook remains relatively pos-
itive, with strong prospects reported in
the Middle East and Asia, as well.
UK ECONOMY

BANK offices in London and

Europe were raided yesterday in a
shock move by European authori-
ties investigating whether the insti-
tutions fixed the regions Euribor
interbank lending rate.
RBS and Deutsche Bank were
among the major banks raided,
according to informed sources, as
offices in London and Paris were
targeted by European Commission
competition investigators.
The Commission is trying to find
out whether the 44 banks that con-
tribute to deciding the Euribor rate
the rate that banks use as their
benchmark when lending to each
other in euros fixed the price to
their advantage.
The Euribor rate is set at the
average of all 44 banks lending
rates and underpins trillions of
euros worth of euro-denominated
loans and debt instruments.
Banks such as Barclays Capital,
Socit Gnrale, BNP Paribas and
Santander sit on the Euribor-EBF
panel that compiles the bench-
mark. It denied price fixing.
We are fully confident in the
governance of Euribor. With so
many banks involved in setting the
rate, fixing a rate artificially would
be impossible, said Euribor-EBF
manager Cedric Quemener.
The Commission said it had
concerns that the companies con-
cerned may have violated EU
antitrust rules that prohibit cartels
and restrictive business practices.
It is the third banking probe this
year, after others into control of
another interbank benchmark, the
London interbank offered rate, and
cross-border bank payments.
Bank offices raided
over Euribor probe
BY ALISON LOCK
ENFORCEMENT

Avivas group chief executive Andrew Moss is to cut 950 jobs in Europe Pic: REX
NEW8 FROM THE
CTY OF LONDON
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ind out more about the City's rich history, including the
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AVIVA will cut nearly 1,000 jobs from
its European operations and bring
Ireland within its UK business to
revive the groups profitability.
Aviva said it would reduce its head-
count in Ireland by about 770 close
to half its 1,770 staff as well as 180
from its European regional opera-
tions over the next two years to give
them a leaner cost base as competi-
tiveness has fallen.
The home and motor insurer said it
wanted to make its Irish arm the
most competitive ... in Ireland after
two years of underwriting losses and
an expense ratio of 19 per cent, com-
pared to 10.5 per cent in the UK.
Aviva blamed the challenging
macroeconomic environment as
well as having too high a cost base.
It has been consulting on the Irish
business since March, while the
European overhaul comes after the
arrival of new European head Igal
Mayer, a known cost-cutter at Aviva.
Aviva cuts 950
Europe jobs as
profits wane
BY ALISON LOCK
INSURANCE

FOR MORE NEWS

@
www.cityam.com
News
7 CITYA.M. 20 OCTOBER 2011
News
8
Vivienne Westwood is among the top names eyeing Shoreditch Picture: Rex
Shoreditch is
fashion oasis
SHOREDITCH is set to be home to a
mini Bond Street as luxury fash-
ion houses Christian Louboutin,
Ralph Lauren and Vivienne
Westwood home in on Londons
east end, setting the stage for a pos-
sible doubling of rents over five
years.
The three fashion houses, which
have sites in high-end areas of
Londons traditional West End shop-
ping district, are among luxury
retailers targeting the once down-
at-heel Shoreditch to capitalise on
its edgy image, lower rents and
increasingly affluent population.
It is a bit like the Meatpacking
District of New York, John Lovell, a
Shoreditch landlord of five proper-
ties, said, referring to the
Manhattan neighbourhood trans-
formed by an influx of high-end
boutiques.
Developer Hammerson is plan-
ning a 485m project south of
Shoreditch High Street with about
630,000 square feet of offices and
shops as well as 299 homes.
Derwent London, which owns
685,000 square feet of property in
the Shoreditch and Old Street areas,
wants more.
Paris-based designer Christian
Louboutin is weeks from closing a
deal for a store close to the
Boundary Hotel on the most
sought-after area of Redchurch
Street -- which already houses a
handful of high-end brands, two
sources said.
Meanwhile British designer
Vivienne Westwood, is looking for a
2,000 square foot shop, while
American retailer Ralph Lauren has
been scouting for a 4,000 sq ft unit
for its second RRL-branded store in
Britain, a source said.
BY HARRY BANKS
RETAIL

News
9 CITYA.M. 20 OCTOBER 2011
HOME Retail Group chief executive
Terry Duddy yesterday called for the
chancellor to do more to help cash-
strapped families as falling sales at
the companys Argos chain took their
toll on the share price.
Denying the companys business
model was broken, Duddy fired a
broadside at George Osborne, chal-
lenging him to increase tax relief for
those on a low income.
Argos was hit by a nine per cent
drop in like-for-like sales in the first
half. That performance triggered a 70
per cent plunge in pre-tax profits to
28m across the group.
The companys share price was
dented by the bleak figures.
Duddy said that climbing inflation
was among the factors contributing
to the woes at Argos.
The government should help
those lower income groups. They
should get more relief, including a
change in the tax threshold, he said.
The company also announced a
joint venture in China that will see
Argos goods sold online in the coun-
try, with one shop also to open.
The deal with Haier will see an ini-
tial 22m investment from Home
Retail. Meanwhile Duddy said he was
optimistic over UK Christmas sales
which he expected to be boosted by
the popularity of iPods and the iPad 2.
He said: The business model is not
broken. We are investing in things
like the Chinese joint venture and the
purchase of Habitat to come out of
the downturn strongly.
Home Retail
hit by Argos
sales decline
Greggs rolls out to motorways
GREGGS the bakers is planning to
open new shops in motorway service
stations as part of an ongoing expan-
sion of the brand.
It has sealed a deal with Moto
Hospitality with the first trial store to
open at a site in Cheshire.
The company, the UKs largest
baker, will open up to 30 outlets to
add to its existing chain of 1,540
shops across the UK.
Greggs sells snack staples, such as
sausage rolls and sandwiches, to six
million customers a week.
Chief executive, Ken McMeikan,
said: Making Greggs even more
accessible to consumers as they travel
will, I hope, be welcomed by both
existing and new customers.
The baker recently announced a
deal to sell its sausage rolls in high
street budget supermarket Iceland.
The companys most recent results,
for the third quarter, showed a sales
rise despite the tough consumer cli-
mate.
Recent rises have been fuelled part-
ly by the popularity of its breakfast
deals.
BY JOHN DUNNE
RETAIL

BY JOHN DUNNE
CONSUMER

SPORTS Direct, Britains biggest

sporting goods retailer, said revenues
rose in recent weeks and added it is
looking to events such as next years
London Olympics to keep sales rolling
in 2012.
The firm, controlled by Newcastle
United owner Mike Ashley, said total
sales rose 11.5 per cent for the nine
weeks to 25 September to 329m.
Gross profits rose 12 per cent to
131m.
The strong trading highlights the
positive sales growth achieved post
the tough FIFA World Cup compar-
isons, said chief executive Dave
Forsey.
The company which owns Sports
World and Lillywhites stores as well
as brands including Slazenger,
Lonsdale and Dunlop, said retail divi-
sion sales rose 12.1 per cent.
Sports Direct profits up
as it eyes 2012 boost
RETAIL

Terry Duddy wants tax relief for people on low incomes

ANALYST VIEWS: HOW SERIOUS IS THE
SALES BLOW AT HRG? Interviews by John Dunne

KEITH BOWMAN | HARGREAVES LANSDOWN

For now, investor concern continues to be fully vindicated. Profits have
missed already lowered forecasts, with Argos suffering. The company remains in a
very difficult place, with downbeat management outlook comments likely to fos-
ter further profit downgrades. Consensus opinion is a sell.

PHILIP DORGAN | PANMURE GORDON

We find it increasingly difficult to see a quick path to recovery for
Argos. In the absence of volume growth and without a significant scaling back in
store numbers and a reappraisal of the role of the catalogue, we think that mar-
gins will continue to be squeezed at Argos.

FREDDIE GEORGE | SEYMOUR PIERCE

We cut our full-year profits forecast from 135m to 125m. We continue
to have significant reservations on the long-term outlook for both the Argos and
Homebase businesses. But we say 'hold' the stock on the basis that there is likeli-
hood of a restructuring programme being put in place over the next year.

ANALYSIS l Home Retail Group

p
13Oct 14Oct 17Oct 18Oct 19Oct
140
135
130
125
120
115
110
105
100
95
99.50
19 Oct
ANALYSIS l Greggs PLC
p
13Oct 14Oct 17Oct 18Oct 19Oct
505.0
502.5
500.0
497.5
495.0
492.5
499.10
19 Oct
WINE specialist Oddbins will from
today start trading from 37 revamped
shops with a new range of 475 wines.
The company plunged into admin-
istration in March but some shops
were bought by Whittalls Wine
Merchants, a subsidiary of Raj
Chathas EFB Group.
Under the new management the
shops remained open but are now
relaunching.
The company is promising to give
shop managers the autonomy to
stock wines that are proving popular
in the area they are serving.
There will also be a blind taste test
in which customers will be asked to
say how much they would be willing
to pay for a wine.
The data will be collated and then
the wine will be priced at the average
figure given.
Ayo Akintola, the new managing
director of Oddbins, said that the new
company would concentrate on cus-
tomer service.
We will not be having complicated
deals but offer a good price for a bot-
tle of wine.
The problem with Oddbins before
was that it was trying to do too much.
We have excellent buyers bringing in
great wines.
Oddbins toasts
return to high
street trading
RETAIL

Contact us on: 0800 279 4772

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BUSINESS
HONOURS
FOR INDIAN
TYCOONS
THERE was a reason Boris Johnson could-
nt attend the launch of Sonia Purnells
Just Boris biography on Tuesday night.
The London mayor was otherwise
engaged presenting KP Singh, the chair-
man of Indias largest real estate develop-
er DLF, with the entrepreneur of the year
award at the Asian Awards.
Singh, the Forbes billionaire who has
made pathbreaking and visionary con-
tributions to the building of modern
India, was one of the headline names at
the Grosvenor hotel event, hosted by
Lord Sebastian Coe with a video address
from David Cameron.
The Prime Minister congratulated all
the winners on their contribution to the
British and global economy and culture
but the man who has influenced the lives
of the greatest number of people is Amit
Singhal, the man behind Google search.
I always wanted to build something
my mum could use, and I am happy to
say that I did, said the master of
Googles ranking system as he collected
his award for Outstanding Contribution
to Science and Technology.
Completing the line-up of business win-
ners was billionaire Anand Mahindra, the
Gathering on a terrace overlooking the
River Thames to reflect on the wandering
of the Jews after their exodus from Egypt
were Hedley Goldberg, MD at Rothschild;
Maurice Helfgott, founder of Amery
Capital; Development Securities CEO
Michael Marx; and Boris Ivesha, the CEO
of Park Plaza Hotels. The law firms
Succah tent will remain open to the
Jewish community for the remainder of
the religious festival.
YACHT BROKERS
THE Commodores Cup yacht race is still
nine months away, but Brewin Dolphin
yesterday staked its claim as the competi-
tions new title sponsor. We are not new-
comers to the world of sailing, said CEO
Jamie Matheson, reminding his audience
at a Royal Ocean Racing Club lunch that
the investment manager already backs
the Scottish Series.
The Commodores Club has its own
rich heritage and this fits well with
Brewin Dolphin as our firm goes back
two-and-a-half centuries, he added.
vice chairman and managing director of
Mahindra & Mahindra, who received the
Lloyds Banking Group business leader of
the year award from the banks sari-wear-
ing CEO of corporate banking Diana
Brightmore-Armour.
Theres a lot of money in manufactur-
ing tractors $7bn, in fact, the amount
the industrial conglomerate is now worth
after Mahindra cracked some of Indias
biggest domestic deals.
RUSSELL THE CROW
WHO SAYS accountants dont have a
sense of humour? Someone at PwC has
named the bird of prey that patrols the
Big Four firms Embankment offices
Russell make the link to the actor
Russell Crowe yourself.
The bird of prey is always on guard,
revealed a PwC hawk. We suppose its
quite a cunning way of keeping pigeons
from settling on the ramparts. Before
other financial services firms start rush-
ing to the falcon breeders, however, be
advised that Russell is in reality a paper
kite attached to a pole on the outside of
the auditors fourth floor.
SUCCAH IN THE CITY
BERWIN Leighton Paisners Succah in the
City event is getting bigger and bigger
each year, said the chief Rabbi, Lord
Sacks of Aldgate, as he addressed the
crowd of prominent Jewish businessmen
at the event to mark the festival of Succot.
Billionaire Anand Mahindra with Lloyds Banking Groups Diana Brightmore-Armour
11 EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
The Capitalist
CITYA.M. 20 OCTOBER 2011
Above: BLP head of
corporate John
Bennett (left) and
Rothschilds Hedley
Goldberg
BSKYB, the satellite TV giant, yester-
day said it had increased first quarter
profits in tough circumstances by
squeezing more cash out of existing
customers.
The average Sky customer spent
535 in the three months to the end
of September, a 25 increase on the
same period last year, after the satel-
lite broadcaster boosted the number
of subscribers who buy all three of its
TV, broadband and telephone pack-
ages.
Almost a third of its 10.3m cus-
tomers now buy so-called triple
playservices, an increase of 29 per
cent compared to last year, helping it
to grow pre-tax profit by 33 per cent
to 307m.
Revenues jumped from 1.53bn to
1.66bn while diluted earnings per
share increased from 10.4p to 12.8p.
The number of new subscribers
signing up to Sky in the three month
period fell to just 77,000, a marked
slowdown from the 96,000 it added in
the first quarter of its last financial
year.
Jeremy Darroch, chief executive,
said: Looking ahead, the environ-
ment is likely to remain challenging
as a result of the pressures facing con-
sumers in the UK and Ireland.
Profits were flattered by the inclu-
sion of a 39m break fee paid by
News Corp, which was forced to
abandon its bid for the BSkyB shares
it didnt own already amid a political
storm over phone hacking at its
Sunday tabloid the News of the
World.
News Corp attempted to buy BSkyB
in the expectation it would start gen-
erating huge amounts of cash.
In the first quarter, cash generated
from continuing operations was up
by 131m to 348m while adjusted
free cash flow was 96m a 39 per
cent jump compared to last year.
Sky profits
as customers
spend more
BY DAVID CROW
MEDIA

ANALYSIS l Operating margin

ANALYSIS l Total direct to home Sky subscribers
millions
4.72
15.3%
16.7%
17.8%
7.3
9.7
11.6
5.50
6.32
7.02
7.42
7.84
8.26
8.67
9.07
9.54
9.96
Q100
-01
Q101
-02
Q102
-03
Q103
-04
Q104
-05
Q105
-06
Q106
-07
Q107
-08
Q108
-09
Q109
-10
Q110
-11
Q111
-12
12
10
11
8
9
6
7
4
5
2
1
0
3
2.0
1.5
1.75
1.0
1.25
0.5
0.25
0
0.75
ANALYSIS l Earnings per share
p
12
10
9
11
8
7
6
5
4
3
2
1
0
%
20
18
19
16
17
15
14
13
10
12
11
ANALYSIS l Total revenue
bn
2010 2011
2009 2010 2011
10.37
1.3
1.5
1.7
2009 2010 2011
2009
News
12 CITYA.M. 20 OCTOBER 2011
Subscriber slowdown is not important
INVESTORS in BSkyB shouldnt get
too wound up about slowing growth
in subscriber numbers. While the
timing might have something to do
with the consumer downturn, new
customer additions were always
going to tail off after the company
passed the 10m mark. Indeed, just
two years ago, many bearish analysts
thought the 10m target would
remain an elusive dream.
Management always knew that
the scorching growth rate wouldnt
last, which is why they have turned
their focus to growing the all-impor-
tant average revenue per user (Arpu)
metric. Although the company has
boosted by almost a third the num-
ber of customers taking the so-called
triple play package of TV, phone and
broadband, there is still much room
for further growth. Virgin Media, its
closest rival in the UK, has 63.8 per
cent of its customers taking three of
its services.
Then there are the nice-to-have
extras such as high definition TV, 3D
TV, sports and movies. While these
add-ons might struggle in the imme-
diate future, Skys market-leading
offering leaves it well placed to ben-
efit when the upturn comes. Until
then, it can sit back and throw off
tonnes of cash.
BOTTOMLINE
Analysis by David Crow
Jeremy Darroch said conditions were challenging Picture: REUTERS
THE SKYS THE LIMIT: PAY-TV GIANT KEEPS ON GROWING
ANALYSIS l British Sky Broadcasting
p
13Oct 14Oct 17Oct 18Oct 19Oct
730
720
710
700
690
680
670
660
710.00
19 Oct
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MOTOROLA yesterday set out to show
it is still a force in the mobile market
with a reboot of its top-selling Razr
handset, saying the phone is out of
the league of rivals Apple and
Samsung.
The ultra-thin device, the first
launched since Google announced its
$12.5bn (7.91bn) takeover of the
firm, looks set to become one of the
flagship phones running Googles
Android operating system.
Speaking to City A.M. at the phones
launch in Berlin yesterday, the firms
head of devices Alain Mutricy said the
Razr is the perfect opportunity to
restore Motorolas flagging European
brand.
He said: Its true the Motorola
brand in Europe is not as strong as
some others its very strong in the
US, China and Latin America but to
reboot your brand you need to have a
very strong product and a very
unique product. And if there is a time
we can do that, it is with this device.
I dont think this phone is in the
same league [as the iPhone 4S and the
Galaxy S2] I think its out of their
league.
The launch came in a frenzied 24
hours in the mobile industry, in
which Google revealed the latest ver-
sion of its Android mobile software,
codenamed Ice Cream Sandwich,
which will go head-to-head with
Apples new iOS 5.
Samsungs new Galaxy Nexus, cre-
ated in collaboration with Google,
will be the first device to run the
update, which includes a feature that
uses facial recognition to unlock your
phone.
Samsung is tipped to overtake
Apple in smartphone sales this quar-
ter after setting a blistering pace with
its Galaxy S2 and receiving a boost
from news of a weaker than expected
17m iPhone sales.
However, extra competition in the
Android market from a rejuvenated
Motorola could chip away at
Samsungs lead.
Motorola in
phone launch
to rival Apple
PRIVATE equity giant Blackstone
bought a piece of European cultural
history yesterday when it took a stake
in German camera-maker Leica.
Blackstone spent upwards of
122m (106.47m) to buy a 44 per cent
share in Leica Camera from Austrian
billionaire Andreas Kaufmann.
The roots of Leica go back to 1907,
when Max Berek began producing
binoculars. It created its first camera
seven years later and devotees went
on to include Henri Cartier-Bresson,
the iconic Frenchman who pho-
tographed Gandhi and Picasso.
The fortunes of Leica have been up
and down since then, however. It
almost went into insolvency in 2005
but was profitable in the year to
March 2011 on sales of nearly 250m.
It wants to double this figure as it
expands by opening new shops in
Asia and capitalising on demand for
small system cameras, which have
interchangeable lenses but are not as
bulky as traditional digital single-lens
reflex cameras
We do not feel any uncertainty,
chief executive Alfred Schopf said yes-
terday. Kaufmann said the firms
strategy will not change and vowed
that his familys investment vehicle,
ACM Projektentwicklung, will retain
a majority stake in Leica.
Blackstone
buys historic
camera firm
BY STEVE DINNEEN
TECHNOLOGY

PRIVATE EQUITY

News
CITYA.M. 20 OCTOBER 2011 13
FIRST LOOK
By Steve Dinneen in Berlin
COMEBACK gigs are difficult to get
right. Success is often as much about
capturing a moment in time as out-
right talent. Get it right and it can be
a glorious reminder of your glory days
think Pulp at Glastonbury but get
it wrong and you risk tarnishing your
memory, much like the Stone Roses at
Leeds. Double or quits. It's a risky
business.
This is the situation Motorola finds
itself in with its new Razr. Back in
the heady days of 2004 it was the
coolest phone on the market but
Motorola has never quite replicated
its success. Now its decided it's
time for that comeback gig.
First impressions are impres-
sive. Its screen dwarfs that of the
iPhone 4S and it is a good bit thin-
ner, with curves bending into
each corner. The downside is this
makes it look a little like its been
squashed. It also suffers slightly
from being too light for its own
good, feeling a bit like a display
model minus its innards.
It packs some serious pro-
cessing power into its 7.1mm
shell and if it had been
released on a world without
Samsung, the Razr could have
become an instant hit. As it is,
you get the nagging feeling
youve seen this act before.

EUROPEs problems are down to its

work-shy population, according to
the head of Chinas sovereign
wealth fund.
Jin Liqun, chairman of the China
Investment Corporation, which
manages about $300bn in assets,
said: The root cause of trouble is
the overburdened welfare system,
built up since the second World War
in Europe -- the sloth inducing, indo-
lence inducing labour laws.
People need to work a bit harder,
they need to work a bit longer, and
they should be more innovative, he
told Channel 4 News.
PRIVATE equity house Permira sparked
hopes of a gradual recovery in buyouts
yesterday as it agreed to pay $1.5bn
(950m) for the call centre software
business of Alcatel-Lucent.
Permira clinched the cash deal for
Genesys, at the top end of expecta-
tions, after six months of talks
between Alcatel-Lucent and possible
bidders.
Hewlett-Packard, Cisco and Siemens
Enterprise Communications had been
among the leading candidates, despite
Alcatel-Lucents net debt hitting
376m at the end of June.
Shares in the Franco-American tele-
com equipment-maker have halved
since May, even as it nears the end of a
three-year turnaround plan after mak-
ing a series of annual losses.
Genesys sells software for the opera-
tion of call centres and video confer-
encing and turns over around $500m.
The deal is expected to complete late
this year or early in 2012.
Brian Ruder, partner at Permira,
said: Genesys is widely recognised as
one of the worlds leading providers of
customer service software and contact
centre solutions, and we are excited by
the long-term growth potential of this
business.
Yesterday sources said Permira had
looked at Alcatel-Lucents entire
Enterprise business, which has 5,000
staff globally, but chose to buy Genesys
because it is seen as having resilient
growth prospects in a difficult macro-
economic environment.
City A.M. understands Permira will
consider exploiting what it sees as a
fragmented market to make bolt-on
acquisitions to Genesys.
The private equity house was for-
merly run by Damon Buffini, who
became one of the stars of the buyout
boom. He later took the chairmans
role before stepping down last year. He
remains a partner.
Permira buys
telecoms firm
in $1.5bn deal
BAE Systems yesterday announced a
shake-up of its reporting structure,
creating a new division for its Cyber
and Intelligence activities, which ana-
lysts say could pave the way for radi-
cal changes within the company.
The defence giant said it is revising
its reporting segments to align with
the groups strategic direction.
There is clearly a strategy, said
Howard Wheeldon, of BGC Partners,
although he was wary of predicting a
demerger. The share price has gone
down 18 per cent in the past six
months. That is a huge concern for
them and they have to address it.
BAE shake-up
to its reporting
CIC: problem is
Europes sloth
BY PETER EDWARDS
PRIVATE EQUITY

ECONOMY

ECONOMY

Former boss Damon Buffini remains a partner in Permira Picture: REUTERS

News
14
SIX MILLION UK workers will see a
total 2.5m of their tax money repaid
by the government as a new IT system
corrects overpayments dating back to
2003, HMRC said yesterday.
The repayments will be on average
about 300 per person with any inter-
est generated on top of that, and will
be returned automatically any time
until the end of next year.
But another one million people
will be sent an average 600 bill that
could hit more than 3,000. Anyone
owing a large sum will be contacted
directly to work out a way to repay in
instalments.
The mispayments cover tax taken
between 2003 and 2007 and have
come to light only after the Inland
Revenue installed a new IT system
that has made it easier to find errors.
Money that is owed going back
many years is now going to be auto-
matically paid back as we get the tax
system up to scratch. We are getting
cases that were left unreconciled up
to date as quickly as possible, an
HMRC spokesman said.
But PwC tax partner Alex
Henderson describe PAYE as a blunt
instrument that worked fine when
people spent their careers in one
firm, but does not suit the needs of
todays workers.
OLYMPUS, the Japanese camera
maker, yesterday threatened to sue its
former chief executive yesterday,
accusing him of causing disruption
to the business and creating a loss of
corporate value.
The camera group fired Michael
Woodford on Friday over what it
claimed were differences in manage-
ment direction and methods. Since
then he has made a number of allega-
tions about what he deems to have
been a misuse of shareholders
money, in particular querying the
payment of $687m (416m) to a finan-
cial adviser in a 2008 deal to buy the
UK-based Gyrus Group.
Olympus yesterday acknowledged
it had paid the fee, which represented
more than one-third of the acquisi-
tion price, but defended it, saying the
acquisition amount was a reasonable
one.
Olympus shares have fallen by 44
per cent since Woodford began speak-
ing about the circumstances behind
his firing last week. He has also called
on the entire board to go, warning of
an existential threat to the future
of the 92 year-old business.
Olympus acknowledged another of
Mr Woodfords claims that it had
spent Y73.4bn between 2006 and
2008 to buy three little-known compa-
nies in fields far from its core busi-
ness.
Olympus hits
out at ousted
ex-chief exec
Six million to get tax rebate as
HMRC overhauls its IT systems
BY DAVID HELLIER
OLYMPUS SCANDAL

POLITICS

Olympus, led by president Tsuyoshi Kikukawa, has defended the fee Picture: REUTERS
News
15
ANALYSIS l Olympus Corp

13Oct 14Oct 18Oct 19Oct 17Oct

2,600
2,200
1,800
1,389
19 Oct
News
17 CITYA.M. 20 OCTOBER 2011
C&C SAID yesterday chief executive
John Dunsmore would leave at the
end of the year after leading a turn-
around of the Irish drinks group, and
reaffirmed full-year profit guidance
when posting first-half results that
met forecasts.
Dunsmore will be succeeded at the
Magners brewer by finance director
and chief operating officer Stephen
Glancey.
Glancey said: There is no change
in strategy at all. You could not put a
cigarette paper between us in terms
of our view of the business.
First-half operating profit was up
7.8 per cent to 67.4m (58.6m) com-
pared with a forecast for 66.4m,
while earnings per share were up 7.1
per cent.
It is a surprise for the market.
People are asking questions about
what is going on, Bloxham analyst
Joe Gill said.
But the numbers are reasonably
solid, especially given the poor con-
sumer background.
Dunsmore said the company had
decided to cut the amount of senior
management capability after three
years of significant restructuring.
The interim dividend was raised 11
per cent to 3.67 cents.
C&C chief Dunsmore to leave as profits lift
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SABMILLER is joining forces with
Turkeys Anadolu Efes to become the
number two brewer in Russia in a deal
that gives the London-based group a
24 per cent stake in the leading
Turkish brewing group.
SABMiller, which last month
agreed to buy Australian rival Fosters
for $10bn (6.3bn), said yesterday the
deal will put it behind Carlsberg in
the worlds fourth largest beer market
and yield cost savings of $120m a
year.
Under the deal, SABMiller will trans-
fer its Russian and Ukrainian beer
business for a 24 per cent stake in
Anadolu Efes, with Anadolu Group,
controlled by the Turkish Yazicilar and
Oxilhan families, holding 42.8 per
cent, leaving a free float of just over 33
per cent following a capital increase.
The alliance will be the focus of
both groups interests in Turkey,
Russia and the former Soviet Union,
central Asia and the Middle East, and
will include the Turkish groups 89 per
cent share of its domestic beer market.
The deal puts an enterprise value of
around $1.9bn on SABMillers Russian
and Ukrainian business.
SAB in tie-up with Efes
BY HARRY BANKS
M&A

SHOEMAKER Crocs lowered its out-

look for the first time in three years
as it faces softening sales at its stores,
amid a weak economy in Europe and
shaky consumer confidence in the
US.
The dim outlook sparked a sell-off
in the Crocs stock, wiping out nearly
40 per cent of the companys market
value in extended trading. Shares
were trading at $17.08 in after-market
trade, after closing at $26.64 on
Monday on Nasdaq.
I am not surprised by this type of
market reaction, Wall Street
Strategies analyst Brian Sozzi said..
Any time you have a wholesaler
like Crocs saying they missed sales
and their margins are below plan,
you immediately think of an invento-
ry pile up in the channel.
Crocs, known for its colourful
clogs, has seen its stock gain over 55
per cent so far this year, excluding
Mondays losses, benefiting from
streamlining its business, lowering
inventory levels and introducing new
styles to win customers.
Footwear products like trainers and
boots offered by peers such as Nike,
Genesco and Footlocker, have been
selling well, Sozzi said.
There is now increased competition
among footwear companies and each
is vying for consumers attention, he
added.
(If) they have to choose between
Nike shoes and a pair of Crocs that
are higher priced than last year, I
think they are going to opt for the
Nike boots, Sozzi said.
The lower direct-to-consumer sales
also ate into the companys gross mar-
gins, chief executive John McCarvel
said in a statement.
Crocs sells its footwear in more
than 90 countries through retailers
and distributors.
Crocs stock
tumbles as
sales soften
DIAGEO, the owner of drinks brands
such as Smirnoff, was hit by a protest
against unacceptable changes to its
rewards for veteran chief executive
Paul Walsh yesterday.
Cooperative Asset Management,
which owns 83m of Diageo shares,
told the annual meeting it was
alarmed to see the board loosen
restrictions on Walshs bumper share
awards without asking shareholders.
Diageo will let Walsh walk away
with all shares awarded for Diageos
performance whenever he resigns,
even if that is before the end of the
three-year review period. In normal
practice, he would be given only some.
We were alarmed to find that a sig-
nificant change to the leaving provi-
sions for the CEO onlywas omitted
from the shareholder consultation
process during the year, the investor
said. We find this unacceptable.
The attack echoes growing disquiet
among investor groups at the rewards
at Diageo. The firm did not release the
results of yesterdays votes but last year
more than 13 per cent refused to back
its remuneration report.
The Coop also slammed Diageos
refusal to engage with it on pay for
eight years. Diageo had never deigned
to provide us with a response, while
long-standing concerns remained in
abundance over performance, it said.
Diageo hit
by investor
critic on pay
AT LEAST five private equity firms
were poised to submit first-round
non-binding offers for a 77 per cent
stake in frozen food retailer Iceland
Foods by yesterdays deadline, four
people familiar with the matter said.
Iceland Foods chief executive and
key investor Malcolm Walker is think-
ing about bidding for the company
later in the process, with backing
from pensions funds and sovereign
wealth, three of the people said.
Analysts expect a winning offer to
value Iceland at 1.3bn to 1.5bn.
BC Partners, Cinven, Blackstone,
TPG and Bain will square up against
supermarket groups Asda, owned by
retail giant Wal-Mart, and Wm
Morrison, the sources said.
The retailers would have to sell off
some of the stores to satisfy competi-
tion authorities.
Five bidders circle Iceland
RETAIL

SABMiller has taken a 24 per cent stake in Turkeys Efes Picture: NEWSCAST
BY ALISON LOCK
LEISURE

BY HARRY BANKS
LEISURE

BY HARRY BANKS
CONSUMER

ANALYSIS l Diageo
p
13Oct 14Oct 18Oct 19Oct 17Oct
1,350
1,325
1,275
1,300
1,331.00
19 Oct
DTZ, the debt-laden property agent,
has put itself up for sale, just two days
after announcing that its majority
shareholder walked away from a deal.
DTZ confirmed in May that Saint
Georges Participations (SGP), the
French group that owns 55 per cent of
DTZ, had made a bid in partnership
with the real estate arm of BNP Paribas
in a deal that valued the company at
162m. Talks ground to a halt on
Monday when DTZ announced that
SGP had walked away, sending DTZs
shares tumbling 13 per cent.
But DTZ said yesterday that it has
received preliminary indications of
interest from a number of parties
potentially interested in acquiring DTZ
and would begin a formal sale process.
DTZ along with its peers in the sec-
tor were hit by the crisis in 2008 but it
has since struggled to recover due to
the large amount of debt on its bal-
ance sheet, which analysts believe
could put off suitors.
DTZs net debt has fallen to 64.3m,
down from 80m last October, but is
still regarded as too high.
The firm also ruled out a break-up:
Those people speculating on the
break-up of DTZ clearly dont under-
stand our business, a spokesman said
yesterday.
Shares closed down 3.3 per cent last
night at 22p.
DTZ launches
sale after bid
talks collapse
BY KASMIRA JEFFORD
PROPERTY

AILING outsourcing group Mouchel

finally got its firesale of assets under-
way yesterday but the first deal will
generate only 3.4m initially.
It has agreed to sell its rail business
and related assets to Australias
Sinclair Knight Merz for cash and
hopes to claw back a further 2.5m
having retained certain assets, such as
money owed by debtors and contracts
where work is underway.
The group has been rocked by cuts
in government spending. Its shares
closed unchanged at 15.25p yesterday
and are still at around only half the
value of two weeks ago. Since then
Mouchel has warned it could breach
its banking covenants and lost interim
chairman David Sugden after he
failed to win backing from main
lenders Lloyds, RBS and Barclays.
Shares are flat as struggling
Mouchel begins asset sell-off
BY PETER EDWARDS
SUPPORT SERVICES

News
19 CITYA.M. 20 OCTOBER 2011
DTZ, led by John Forrester, is up for sale again after bid talks fell through
ANALYSIS l Mouchel Group
p
13Oct 14Oct 18Oct 19Oct 17Oct
20
12
16
14
18
15.25
19 Oct
ORIEL Securities has been appointed
adviser and broker to DTZ, with David
Arch, head of corporate finance, lead-
ing the sale process. He is joined by
partners Emma Griffin and Michael
Shaw.
Arch has over 25 years' corporate
finance experience advising companies
on M&A and capital raising transac-
tions. He spent twelve years working
for Schroders corporate finance divi-
sion, before joining Close Brothers in
1996 as corporate finance director.
Oriel Securities reputation has
grown since it was established as a
boutique investment bank and broker-
age in 2002.
In May this year it advised the
online gaming firm Sportingbet on its
acquisition of Australian peer
Centrebet in a 117m all-share deal. It
also completed the 220m stock mar-
ket float of Max Property Group in
2009 and has worked on several other
equity raisings.
MEET THE ADVISERS:
DAVID ARCH
ORIEL
SECURITIES
ANALYSIS l DTZ Holdings
p
13Oct 14Oct 18Oct 19Oct 17Oct
30
28
24
26
22.00
19 Oct
GLOBAL miner BHP Billiton reported a
24 per cent jump in quarterly iron ore
production yesterday, its foot stuck
firmly to the accelerator even as prices
for the steel-making commodity slide
and Chinese steel mills wind back out-
put.
BHPs iron ore production for the
September quarter largely met mar-
ket expectations, putting it on a
record annual run rate of 173m
tonnes and mirroring ramp-ups from
bigger rivals Rio Tinto and Brazils
Vale.
BHP said improvements to its
Australian rail system, which hauls
iron ore from desert mines to the
coast, helped boost production. It gave
no comment on demand in the quar-
terly report but it has always main-
tained that it sells all it mines.
But with iron ore prices tumbling
in recent weeks, there are question
marks over the near-term outlook,
given that the worlds biggest iron ore
consumer, China, faces pressure on
steel margins as Beijing engineers a
soft economic landing.
Chinese crude steel production in
September fell to its lowest point in
seven months.
The overall market is in panic as
small mills have started to shut down
some blast furnaces, while big ones
are relying on their existing iron ore
inventories and reduced buying, an
iron ore trader in China said on the
eve of BHPs production report.
The worlds biggest iron ore miner,
Vale, also appears to be responding to
the weakening demand from some
Chinese mills, offering to sell them
cheaper spot-priced ore rather than
ore priced under quarterly contracts.
Spot iron ore fell almost 70 per cent
to $56 a tonne in November 2008 after
the global financial crisis struck, then
almost tripled to a high of around
$192 last February. It has since
slumped 22 per cent to around $150.
BRITISH industrials group GKN
said yesterday third quarter profit
rose 14 per cent, helped by strong
growth at its automotive, agricul-
ture and metals divisions.
GKN, which produces auto com-
ponents as well as airframes for
plane-makers Airbus and Boeing,
reported a pre-tax profit of 100m
on sales 11 per cent higher at
1.48bn in the three months to the
end of September.
The figure does not include a
23m hit GKN took relating to
costs incurred by an explosion at
its plant in Gallatin, Tennessee in
May, which killed two people.
Macroeconomic uncertainty
has increased in recent months,
although no significant deteriora-
tion has been experienced in GKNs
order books, the company said in
a statement.
On the basis of current market
conditions, we therefore expect
the group to continue to perform
strongly through the fourth quar-
ter.
Overall we continue to expect
2011 to be a year of strong
progress, with the group well posi-
tioned for growth in 2012 and
beyond, it said.
Shares in GKN, which have fallen
14 per cent in the last three
months, dropped by almost five
per cent to close at 185.90p yester-
day, valuing the company at just
over 3bn.
GKN predicts a strong end to the year
as profits rise at airframe producer
US INSURER Unum has left the race to
buy Irelands largest life insurer Irish
Life, the Irish Independent reported
yesterday, without citing any sources.
Bancassurer Irish Life & Permanent
has put its life business, the jewel in its
crown, up for sale after stress tests as
part of an EU-IMF bailout revealed it
had a capital hole of 4bn (3bn).
The life business has an embedded
value of around 1.6bn.
The news of Unums withdrawal
emerged earlier when Irish Life &
Permanents advisers Deutsche Bank
received second-round bids, the news-
paper reported.
The companys board and Irelands
Department of Finance, who will con-
sider the bids, both declined to com-
ment. Unum did not immediately
respond to an request for comment.
Finance buyout firm JC Flowers in
partnership with private equity firm
Apollo Global Management, and
Canada Life Ireland were interested in
Irish Life.
Unum drops out of race
for Irish Life business
INSURANCE

WEST Africa-focused oil firm

Bowleven is seeking to raise $120m
(75.8m) via a placing to help fund
the continued exploration and
appraisal of an oil field it has discov-
ered off the coast of Cameroon.
The company said yesterday that
without raising funds there would be
a significant impact on its ability to
carry out its plans for its asset in
Cameroon as it will only have around
$15m of cash at the end of October.
The placing is conditional on a res-
olution being passed at a general
meeting scheduled for early
November.
Bowleven also flagged a $42m
write-off in relation to an exploration
permit in Gabon and a $23m foreign
exchange movement cost ahead of its
annual results in November.
The company, which is worth
$391.1m, said it will consider bring-
ing partners into its permits in
Cameroon which could help fund
exploration costs.
Bowleven to raise $120m
to fund Cameroon plans
OIL & GAS

RIO Tinto has made a C$578m

(361.6m) friendly takeover offer for
Canadian uranium explorer Hathor
Exploration in a move to thwart
Cameco Corps hostile bid.
Hathors board has recommended
shareholders accept Rio Tintos all
cash bid at C$4.15 per share, which is
higher than Camecos offer of C$3.75
a share.
At stake is Hathors Roughrider
deposit, a uranium project located
near Camecos Rabbit Lake mill in the
Athabasca Basin of the Canadian
province of Saskatchewan.
Shares of Hathor were halted on
Wednesday morning on the Toronto
Stock Exchange. Shares of Cameco,
Canadas largest uranium producer,
dropped 2.88 per cent to C$20.88.
Cameco launched its hostile bid for
the uranium exploration company in
late August, after talks aimed at a
friendly deal failed.
Hathor said Camecos C$3.75 a
share offer was financially inadequate
and failed to ascribe value to
Roughrider and to its other assets,
including its Russell Lake property in
the southeastern Athabasca Basin.
Rio Tinto announced yesterday that
John Varley -- who joined its boards on
1 September -- has replaced Andrew
Gould as chairman of the remunera-
tion committee. Gould will retire
from Rio Tintos boards following the
2012 AGMs.
Rio Tinto
launches bid
for Hathor
MINING

AEROSPACE electronics group

Cobham said it agreed to sell its ana-
lytic solutions business to privately
owned engineering firm Parsons
Corp for $350m (222m), five
months after the British firm said it
would look to shed two of its non-
core units.
Cobham, whose equipment helps
military vehicles such as F-35 fighter
planes communicate with one
another, expects the deal to hurt its
earnings by about five per cent, and
that it would gain about $20m after
costs.
In May, Cobham had said it would
look to sell its commercial systems
and analytic solutions businesses.
Changes to the US Government
Organisational Conflict of Interest
rules and the competitive intensity
in its markets have diluted the
strategic benefit to the group of
owning this business, Cobham said
in a statement.
The analytic solutions unit pro-
vides a range of scientific, systems
engineering and network centric
warfare services to the US missile
defence and national security mar-
kets.
For the six months ended 30 June,
the analytics solutions business post-
ed an operating profit of $13.8m on
revenue of $144.3m.
Cobham to sell Parsons Corp
BY HARRY BANKS
ENGINEERING

BHP ups iron

production as
prices slide
BY HARRY BANKS
MINING

BY HARRY BANKS
ENGINEERING

News
20 CITYA.M. 20 OCTOBER 2011
SALES OF BLACK CABS FALL IN THE UK
MANGANESE Bronze, maker of the iconic black London cab, said yesterday that its UK
revenue had fallen in the third quarter due to tough economic conditions, but that inter-
national sales had almost tripled. Revenue in the three months to 30 September declined
8.6 per cent, with year-to-date UK sales down 7.5 per cent to 1,174 vehicles.
Picture: Laura Lean / City A.M.
ANALYSIS l Bhp Billiton
p
13Oct 14Oct 18Oct 19Oct 17Oct
2,000
1,950
1,850
1,900
1,890.00
19 Oct
ANALYSIS l Cobham
p
13Oct 14Oct 18Oct 19Oct 17Oct
182
178
170
174
177.90
19 Oct
News
21 CITYA.M. 20 OCTOBER 2011
RLAM
Royal London Asset Management has
promoted two members of its property
team. Stephanie Hacking has been pro-
moted from assistant fund manager to
fund manager, and Andrew Johnston
has been promoted from asset manag-
er to assistant fund manager.
Barclays Wealth
The wealth manager has appointed
Rachel McCarthy as a private banker
in the London and South East team
within the UK & Ireland Private
Bank. She joins from Coutts & Co,
where she managed a portfolio of
professional clients.
Secret Escapes
The free members website, backed by
Octopus Investments, has hired Alex
Saint as chief executive. He moves from
Dealchecker, where he was also CEO.
Oracle Coalfields
The Pakistan-focused coal developer
UK has appointed Tony Philip as
finance director and Brian Rostron as
mining and contracts manager. Philip
has handled major project financings
with African and Middle Eastern com-
panies while working at Shell Group,
and Rostron previously worked at
Miller Argent South Wales, HJ Banks
Mining and the Scottish Coal Company.
Deloitte
The business advisory firm has
appointed Carole Crossley as a director
to lead its growth and markets team in
the global employer services group,
part of the firms tax practice. Crossley
previously held senior HR roles at BP
and Lloyds Banking Group; prior to
that, she was a partner at Ernst &
Young in Los Angeles and New York.
Argonaut Capital Partners
The European equity boutique founded
in 2005 has appointed Greg Bennett to
its investment team. Bennett has nine
years fund management experience,
starting as an analyst at Neptune
Investment Management before joining
Marlborough Fund Managers.
Towers Watson
Jeremy Hill has been hired as a direc-
tor in Towers Watsons International
Consulting Group. He joins after eight
years at Mercer, where he was a prin-
cipal in the international team.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+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
Investors spooked
by Eurozone fears
U
S stocks fell yesterday as traders,
after sitting on their hands for
most of the day, jumped to sell
in a hair-trigger reaction to
fresh reports underscoring that
Europe remains far from a solution to
its debt crisis.
In a repeat of a now-familiar pat-
tern, traders capitalized on headlines
emerging late in the trading day, this
time to push the market lower. With
long-term investors largely on the
sideline due to Europes uncertainty,
the market remains susceptible to
swift swings.
The market has become overly sen-
sitive to chatters and rumors out of
Europe and to the headline news. This
is exactly what happened yesterday
and that just shows how unstable this
market is, said Eric Marshall, director
of research at Hodges Capital
Management in Dallas.
Frances President Nicholas Sarkozy
said yesterday that talks to tackle the
Eurozone crisis were stuck as they
struggled to increase the bailout
funds firepower, while a Wall Street
Journal report said Europes bailout
fund could be used to provide collater-
al to back up bond issues by troubled
countries.
On Tuesday, stocks rallied on late
news suggesting Eurozone leaders
had a big package in place for rescu-
ing indebted nations.
A weak economic outlook from the
US Federal Reserve was responsible for
the initial move lower yesterday after-
noon.
Technology stocks were the biggest
losers after a rare earnings miss from
tech heavyweight Apple.
Apple shares fell below $400 after
the company's revenue and profits
came in below estimates for the first
time in years on Tuesday as it sold far
fewer iPhones than expected.
The CBOE Volatility Index VIX, Wall
Street's so-called fear gauge, jumped
10.1 per cent to 34.76, reflecting mar-
ket jitters ahead of a summit of
European Union leaders on Sunday.
Investors hope the meeting will pro-
duce a concrete plan to handle the
regions debt crisis.
The Dow Jones industrial average
was down 75.49 points, or 0.65 per
cent, at 11,501.56. The Standard &
Poors 500 Index was down 15.63
points, or 1.28 per cent, at 1,209.75.
The Nasdaq Composite Index was
down 54.41 points, or 2.05 per cent, at
2,603.02.
On the upside, Intel Corp hit a new
52-week high of $24.50 earlier after
the chipmaker forecast quarterly rev-
enue above expectations.
The stock closed up 3.6 per cent at
$24.24.
B
RITAINS leading share index
closed higher yesterday, buoyed
by financials on fresh specula-
tion of a game-changing
response to the Eurozone debt crisis
at a weekend meeting of regional
leaders.
Forecast-beating earnings from the
likes of spirits group Diageo also
helped drive the move, although con-
cerns about growth continued to
come through in other results, for
example GKN, which capped some of
the optimism.
By the close, the FTSE 100 index of
leading British blue-chip stocks was
up 0.7 per cent, or 40.14 points, at
5,450.49, snapping a two-day losing
run but still leaving the index down
slightly on the week.
Volumes remained low, however, at
three-quarters of the indexs 90-day
daily average, suggesting a solid,
buyer-fuelled move further away from
the trading range, established after
the August sell-off, is unlikely ahead
of the weekend, traders said.
Financials including banks led the
charge higher for most of the day,
helped by a late Tuesday report in the
Guardian newspaper, subsequently
denied, that Germany and France had
agreed a deal to boost the firepower of
the regions bailout fund to over 2
trillion (1.75 trillion).
Many see leveraging up the rescue
fund as a central plank of a multi-
pronged political response to the cri-
sis, expected at a weekend meeting of
European leaders, but such a move
has consistently been rejected by
Berlin.
Were waiting to see what hap-
pens, but banks are very hard to
analyse at the moment. My sense is
banks are cheap, but you can only say
probably cheap, because you cant be
sure, Jeremy Thomas, chief invest-
ment officer, UK equities, at fund
manager RCM, said.
Thomas, who recently closed part
of his underweight on the sector,
said he did not expect a magic silver
bullet to emerge at the weekend to
solve the crisis as the problems were
largely political.
The French clearly want Europe to
recapitalise the banks. The Germans
want sovereign governments to recap-
italise their own banks. So the two
views are very different.
That difference was highlighted
during the afternoon session after
French president Nicolas Sarkozy said
efforts to reach a deal had stalled over
methods to boost the rescue fund,
although market response was
muted.
Lloyds Banking Group was the top
sectoral gainer, up 3.4 per cent, while
Barclays rose 2.5 per cent, supported
by forecast-beating earnings from US
asset manager BlackRock, in which it
has a stake. As a result of the index
gains, the FTSE 100 Volatility index
fell two per cent to 30.35. The lower
the index, the higher investor
appetite for risk. Implied volatility,
meanwhile, had risen three per cent
on Tuesday, Datastream data showed.
I expect (intraday) volatility in the
market to remain high until we get
firm news (about a wide-ranging
deal), a sales trader at a UK brokerage
said. People are happy to own the
equity market but are nervous in
doing so.
Hedging out volatility was still
incredibly expensive... institutions
are still reluctant to place too much
money in using a hedge as the burn
rate of whatever optionality they buy
is very, very high, he added.
The truth is theres a lot of cash in
the market, and if people had a
(Eurozone debt) stability programme
they could believe in, the market
would go up quite aggressively.
Britain's FTSE gets fillip from
debt crisis hope and earnings
THELONDON
REPORT
THENEW YORK
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l WPP PLC
725
700
675
650
625
600
575
Aug Sep Oct
p 630.50
19 Oct
WPP
UBS rates the advertising giant as neutral with a target price of 620p, after
this weeks digital investor day gave a positive outlook on the companys
longer-term strategy. The broker says the revenue opportunities for providing
a wider variety of higher value services are very clear, but could come at a
cost through staff inflation, capital expenditure or acquisition spend. UBS
sees full year 2011 earnings of 64.44p per share, rising to 69.81p in 2012.
ANALYSIS l Pennon Group PLC
700
650
600
550
500
450
400
Aug Sep Oct
p
702.00
19 Oct
PENNON
JP Morgan rates the waste services company as overweight with a target
price of 685p, after an analyst day focusing on its waste division, Viridor.
Presentations by the divisions chief executive and finance director highlighted
the long-term attractiveness of Viridors Energy from Waste (EfW) project
pipeline, which could lead to a doubling of Ebitda by 2015. The broker is
slightly more conservative, estimating 67 per cent growth instead.
ANALYSIS l Danone
50
48
46
44
42
Aug Sep Oct

46.69
19 Oct
DANONE
Citi rates the French food producer as a buy with a target price of 48,
after third quarter figures that were broadly in line with estimates, but
showed another weak performance in the dairy division. Organic growth of
5.9 per cent was marginally ahead of consensus on a strong performance
by its water products, but 3.5 per cent growth in dairy was below expecta-
tion of 3.9 per cent.
25Jul 12Aug 2Sep 12Oct 22Sep
6,000
5,200
5,600
ANALYSIS l FTSE
5,450.49
19 Oct
Rockspring
Rockspring Property Investment Managers
has appointed Hugh Bigham (pictured) as head
of capital raising and client services for North
America. Bigham joins from the Sydney office
of Principle Advisory Services, where he sup-
ported real estate and private equity man-
agers. In addition, Julianne Cho joins from
Cornerstone Real Estate Advisers as client
services representative in Korea, and Maria
Bergliden-French joins from Barclays Wealth
as business development manager.
A
S EUROZONE leaders gear up for their
umpteenth summit to solve the
Eurozone crisis, they seem to have
reached the conclusion that what the
Eurozone needs is more leverage. Not only
that, but they seem to believe that the best
way to achieve this would be through using
the EFSF, the Eurozones bailout fund, to
insure shares of Eurozone sovereign debt.
The irony is that many of the same leaders
just agreed to pointless regulation of credit
default swaps (a valid form of default insur-
ance), which is likely to decrease liquidity in
sovereign debt markets, increase borrowing
costs for some countries and hamper risk man-
agement. This hypocrisy is sadly, and expected-
ly, lost on Eurozone leaders, who seem intent
on taking with one hand and giving with the
other fiddling while the Eurozone burns.
The thrust of the plan is that 440bn worth
of EFSF funds would be used to offer a guaran-
tee of 20 per cent on new, mainly Italian and
Spanish sovereign debt, therefore leveraging
the coverage of the fund five times. Lets put
aside the legal issues relating to the
Eurozones no-bailout clause and the recent
German Constitutional Court ruling for a
minute and focus on the economics which
just dont add up.
First off, Spain and Italy represent 30 per
cent of the EFSF guarantees. As a result, any
EFSF insurance would prove ineffective, since
these countries would be partly guaranteeing
themselves through their membership of the
fund and unable to make good on these guar-
antees if under threat of default the exact
moment when the guarantees would need to
be called upon. Both countries could step out
of their EFSF commitments (as bailed out
countries already have) but this would reduce
the size of the fund significantly.
This leads to a second problem there isnt
that much money to be leveraged, even if the
EFSFs triple-A rating is abandoned in an
attempt to access the full 780bn in guaran-
tees underpinning it (which are currently
needed to ensure 440bn effective lending
capacity). After the second Greek bailout,
around 115bn would be committed from the
EFSF to bailout programmes in the Eurozone
periphery. Add to this the need for a recapital-
isation of European banks, which could cost
the EFSF up to 200bn (as suggested by the
IMF). Lastly, take into account that the guaran-
tees of Italy and Spain along with Greece,
Ireland and Portugal have to be discounted.
This leaves only around 175bn to be lever-
aged, not exactly significant considering that
Italian and Spanish funding needs amount to
around 1.7 trillion over the next few years.
Thirdly, this plan offers little incentive to
investors as the likely scenarios are ones of
extremes there will either be no default with
no losses or significant losses under a signifi-
cant default. But 20 per cent insurance falls
somewhere in the middle of the two, which is
rather like insuring only part of your house
and therefore unlikely to inspire much confi-
dence. Furthermore, assuming that other
countries would be able to fulfil their guaran-
tees during a Spanish or Italian default is
unrealistic, particularly given the contagion
experienced so far throughout the crisis and
the already fragile state of some government
finances in the core of the Eurozone.
Additionally, since it looks likely only to
apply to new issues of debt rather than the
existing stock, it could at best only help Italy
and Spain with their liquidity problems, but
will do nothing to solve the underlying solven-
cy problems in other Eurozone countries. A
proposal that does not tackle the problem of
contagion or existing debt levels cannot be
seen as a solution. It could also encourage fis-
cal profligacy in those states which receive
some insurance something which the
Eurozone can ill afford more of.
Even if this proposal were viable, the knock-
on effects of its implementation would be
undesirable. It would create a two-tiered bond
market, since a large amount of new debt will
involve some insurance (credit enhancement)
with the aim of making it safer. This would
introduce huge uncertainty into secondary
markets, making it more difficult to price sov-
ereign risks in the Eurozone most would
agree this is the opposite of what is needed.
Take these issues as a whole and a disturb-
ing picture emerges, one that conjures images
of the excessive leverage, unfunded liabilities
and misleading credit enhancements that
helped fuel the financial crisis. Putting these
at the heart of the Eurozone sets the scene for
another crisis. Moving forward with a restruc-
turing of Greece and Portugal, a full bank
recapitalisation and reforms to restore com-
petitiveness across the Eurozone remains the
only feasible short-term solution to this crisis.
However, none of the options on offer, least of
all this insurance plan, can tackle the underly-
ing structural flaws in the Eurozone.
Raoul Ruparel is the head of economic research for
Open Europe.
22
The Forum
CITYA.M. 20 OCTOBER 2011
Any EFSF insurance will be
ineffective; countries would
be guaranteeing themselves
The latest plan to rescue the
Eurozone is flawed: It sets
the scene for another crisis
cityam.com/forum
RAOUL RUPAREL
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
23
Squeezing older
citizens is not the
way to solve our
housing shortfall
Dont give house
room to illiberal
spare-bed taxes
A
MISGUIDED charity has called upon the
government to take action against eld-
erly people who live in large homes. In
its outrageous report Hoarding of
Housing, the Intergenerational Foundation (IF)
takes aim at 25m unused bedrooms in
England. In view of the real housing shortage,
the charitys surreal answer is that the govern-
ment should tax the elderly into smaller
homes. It would (how generous) exempt the
over-60s from stamp duty when they sell to
move to a smaller home; and it wants to
replace the council tax with a land tax, to
reflect the social cost of occupying ... housing
that is larger than ones needs. In a very wel-
come move, housing minister Grant Shapps
dismissed the idea, replying that the elderly
would not be bullied out of their homes.
The report correctly laments the decline of
UK home ownership, which went down from
70.9 per cent in 2003 to 67.4 per cent today.
Owning ones home is now virtually impossi-
ble for the young. But the shortage of housing
and its high cost are in large part the conse-
quence of state interference. Supply cant satis-
fy demand as land prices are kept high by legal
rationing. Building is held back by regulatory
restrictions. The answer isnt to ration homes
instead, government needs to make planning
permission simpler, so more houses are built.
The suggested alternative trying to calcu-
late when other peoples spare rooms are sur-
plus to their requirements presents a classic
example of F.A. Hayeks knowledge problem.
How is the governments spare room commis-
sar to know what the rooms in our houses are
used for, and how necessary they are? A spare
bedroom can be an office, an occasional nurs-
ery when the grandchildren come over or
simply store the mementoes of a lifetime.
But the IF, in its arrogance, just worries that
older people are living longer and staying in
the family home rather than downsizing to
more appropriate accommodation. Is govern-
ment now to decide what accommodation is
appropriate for citizens? The Soviet Union is
not as dead as we thought.
Such thinking is fundamentally socialist:
the zero-sum mentality that for every winner
there is a loser. But lowering the cost of plan-
ning approval is a simple, just way to satisfy
peoples changing needs by growing available
resources in line with demand, not forcing the
redistribution of what already exists.
The IF is arguing instead that private proper-
ty rights should be torn up. It is perfectly
understandable that retired people cling to
their home long after it has outlived its useful-
ness as a place to bring up a family in. But
there are profound social consequences of
their actions which are now causing real prob-
lems in a country where new house building is
almost non-existent, says co-author Matthew
Griffiths. In other words, you think you own
that bedroom now, but if he had his way, socie-
ty would be able to confiscate it.
Such illiberal suggestions solve nothing and
seek to steal away essential freedoms. The old
aphorism holds true: government must stay
out of citizens bedrooms.
JP Floru is the author of What the Immigrant Saw,
published by Bretwalda Books 9.99.
DNA of innovation
Id like to draw Tim Hammond's
[Innovation first, Rapid
Responses, yesterday] attention
to the computer, transistor and
integrated circuit. Together they
have transformed the world far
more than the jet engine did, and
are all more recent inventions.
Then there are new technologies
in the life sciences, such as DNA
sequencing and tissue engineer-
ing. Id expect these to have a
massive impact in the future.
Graeme Sutherland
Birth not worth
Evidence suggests the costs
associated with taking on
unpaid internships, such as trav-
el and accommodation, are not
affordable and are a disincentive
to applicants from lower income
backgrounds. A voluntary code,
which we helped produce, sug-
gests internships be fair, high-
quality, and advocates interns be
paid the national minimum
wage. ICAEW has gone a step
further by paying its interns a
living wage, as it recognises the
role of the professions in tack-
ling the cycle of birth not
worth as a determinant of
career aspirations.
Maura Owens, director of
human resources, ICAEW
Speak your mind
Got a short sharp response?
Join in online: cityam.com/forum;
by email: theforum@cityam.com;
and on Twitter: @cityamforum.
RAPID RESPONSES
In association with
JP FLORU
BY ANTHONY BROWNE
CITYA.M. 20 OCTOBER 2011
The Forum
I
F YOU were stuck
in a burning build-
ing with no exits,
what would you
do? You could try to put
out the fire, or try to
dig an escape route.
When Europes leaders
gather this weekend,
they are going to spend
their time trying to get the fire extinguishers to
work to quell the euro firestorm. Which will leave
them with a big problem if they dont succeed
because they wont have thought about how to
manage a country escaping the euro in a way that
causes the minimum chaos.
This is the point of the Wolfson Economic Prize,
announced yesterday. The worlds second biggest
economics prize, at 250,000, is aimed at getting
the best brains thinking about the best way to
manage one or more countries leaving the euro
before it is too late. Normally this is something you
would expect the finance ministries of Europe to
do, but the slightest whiff that they are preparing
for Greeces departure from the euro could precipi-
tate the very crisis they are trying so desperately
to avoid.
For many of Europes political leaders, the
breakup of the euro is so unthinkable they simply
arent thinking about. But I suspect behind closed
doors there are pragmatists in various German
financial institutions that are considering the chal-
lenge they might well soon face.
Certainly many economists have idly speculated
about what might be involved. A Greek departure
would probably lead to devastating capital flight
from Greece, devaluation of over 50 per cent, the
wiping out of the life-savings of swathes of the
population, the bankrupting of Greek mortgage
holders of non-Greek euro mortgages, and the
chaos of existing business contracts being ren-
dered meaningless.
And thats just the predictable stuff. The
breakup of currency unions can be a very messy
business. The collapse of the Soviet Union led the
rouble to splinter into a dozen currencies, and initi-
ated a series of civil wars. The dismemberment of
the Austro-Hungarian empire after the First World
War led to the abrupt and chaotic introduction of
multiple currencies in its constituent parts. When
Argentina broke off the peg with the US dollar in
1992, it caused short-term economic devastation
although once it had taken the punishment,
Argentina was soon on the road to recovery.
But history shows us that with stable politics,
the breakup of currency unions doesnt have to be
devastating. The abandonment of the
Scandinavian currency union in 1931 was a pre-
dictably Scandinavian affair. Slovakia quickly got
over its monetary split from the Czech Republic.
When the Irish pound divorced from the pound
sterling in 1979, most people barely noticed.
This time, political circumstances are different,
the economic strains particularly pronounced, and
financial systems have changed beyond recogni-
tion. But it is vital we learn the lessons from histo-
ry as much as possible. The launch of the euro was
an unprecedented logistical exercise that was
flawlessly smooth only because of extraordinarily
meticulous planning. Without planning, the
breakup of the euro would be far from smooth.
The Wolfson prize might seem like a lot of money
at 250,000. But if it helps avert financial chaos
in Europe, it could be one of the best investments
ever made.
Anthony Browne is the former director of the
leading think tank Policy Exchange.
anthony@anthonybrowne.org
A euro escape route is
well worth 250,000
Email: theforum@cityam.com
Twitter: @cityamforum
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0800 138 3684
Henderson EuroTrust plc
Source: All data sourced from Morningstar as at 31 August 2011,
unless otherwise stated. The latest data is available on our website.
Annual Growth to 31 August 2011
Ref: HNECA-01
The facts youll want to know
Henderson EuroTrust plc was voted the best
European Investment Trust by both Money
Observer and Moneywise Investment Trust
Awards 2009.
A proven investment philosophy is consistently
applied, comprised of a high-conviction portfolio
of good quality European companies generally
brought and held over the medium to long term.
This Trust has a highly experienced
management team led by a manager who has
led this Trust successfully for over 16 years.
Please remember that past performance is not
a guide to future performance.
Henderson EuroTrust gives investors access to some
of Europes blue chip brand names like Total and Nestle
which can offer great potential, especially when they
appear undervalued in light of their growth prospects,
or due to structural change.
Henderson EuroTrust can give you access to such
companies, whilst aiming for a superior total return from
a high-quality portfolio.
Investing in the Trust brings you access to a focused
portfolio of around 50 mid to large sized well known
Western European companies. It offers the prospect of
long-term capital growth, through the skills of an award-
winning management team, led by the same manager
throughout the last 16 successful years.
Please remember that past performance is not a guide to
future performance. The value of an investment and the
income from it can fall as well as rise as a result of
market and currency fluctuations and you may not get
back the amount originally invested.
This portfolio may hold only 40-60 stocks. If one of these
investments declines in value, this can reduce the
portfolio's value more than if it held a larger number of
investments. Investors need to be aware of exchange
rates. Most of the investments in this portfolio are not
made in Sterling, so exchange rates could affect the
value of and income from your investment. If a fund is a
specialist country-specific or geographic regional fund,
the investment carries greater risk than a more
internationally diversified portfolio.
...but Henderson
provided me
with the solution.

2010/11 2009/10 2008/09 2007/08 2006/07
Share Price (Total Return) 7.9% 2.3% 1.3% -4.7% 13.6%
Net Asset Value (Total Return) 8.2% 6.9% -5.5% 2.1% 14.9%
Donata Huggins goes in search of the
facts. She asks an industry expert what
actually affects your nancial records
A
BAD credit rating is the finan-
cial equivalent of a six-year
hangover. We should fear
them. They can stop you get-
ting a mortgage, new car and leave
your credit card trapped on a crip-
pling interest rate.
But a lot of what is said about them
is rubbish. For example, 71 per cent
of people still believe that a previous
tenant in your home can affect your
credit rating. We asked James Jones,
Experians head of consumer educa-
tion, for the truth. Heres what he
said.
1.
.
MYTH: YOU NEED TO FEAR
PREVIOUS TENANTS
No, a previous resident in your prop-
erty will not affect your credit rat-
ing. Credit ratings are based on
people not properties.
2.
TRUE: APPLYING FOR CREDIT IS
BAD FOR YOUR RATING
Applying for credit in any form, how-
ever, does affect your rating. It indi-
cates a hunger for more money, says
Jones. Doing it frequently looks des-
perate.
3.
MYTH: CHECKING YOUR RATING
IS BAD FOR YOUR RATING
Checking your rating online will not
do anything. You can check every
five minutes if you want. Its not
going to make a difference.
4.
TRUE: YOU NEED TO BE ON THE
ELECTORAL ROLL
The electoral roll is the root of your
credit rating: It proves your name
and address and ties everything
together, says Jones. You need to
make sure you re-list yourself on the
register if you slip off while working
abroad.
5.
MYTH: YOU ARE LINKED TO YOUR
PARTNERS FINANCIAL HISTORY
You are only linked to your partner if
you have a financial relationship,
sharing a joint mortgage, loan or
credit card. Youre not linked just
by virtue of being married. If you
share a mortgage, however, its a
good idea to check each others rat-
ings to pre-empt any problems.
5.
TRUE: MOVING HOUSE IS BAD
FOR YOUR RATING
Statistically, people who regularly
move around are more likely to
default on their debts, says Jones. If
you know youre going to move
around for a few years after graduat-
ing, for instance, its probably best to
use your parents address until you
live somewhere more permanent.
6.
MYTH: CLOSING CREDIT CARDS
IS GOOD FOR YOUR RATING
Contrary to what might seem logi-
cal, keeping a credit card youve
missed payments on open will
improve your rating. Your credit
card payment records look like a
conveyor belt to the rating agencies.
You can push bad information off its
radar by consistently making pay-
ments. Closing the card leaves the
missed payment history locked in
time.
8.
TRUE: PAYING ONLY THE
MINIMUM PAYMENTS ON YOUR
CREDIT CARDS IS BAD FOR YOUR
RATING
Only paying the minimum payment
on all your credit cards hurts your
credit rating. Doing this every so
often or on just one card is not a
problem, but if you do it on every
card all the time, you look like
youre struggling to manage your
debts to the rating agencies.
9.
MYTH: MOBILE PHONE BILLS
ARE NOT FACTORED INTO YOUR
RATING
This used to be true, but now the
vast majority share your information
with the credit rating agencies.
10
. . .
TRUE: TAKING MONEY OUT
ON YOUR CREDIT CARD IS
BAD FOR YOUR RATING
Once in a blue moon this sort of
behaviour is not a problem, but do it
regularly and you might have prob-
lems. Yet again, Jones explains, it
demonstrates a hunger for credit.
Time to debunk
the silly myths
about personal
credit ratings
24
Wealth Management| Credit
CITYA.M. 20 OCTOBER 2011
Its good to
check on your
financial health
Picture: Rex
Philip Salter asks Saker Nusseibeh, head
of investment at Hermes Fund Managers,
the reasons he founded the 300 Club
Q.
WHY ARE YOU CALLED THE 300
CLUB?
A.
This refers to the 300 Spartans
who stood against an invading
Persian army at Thermopylae. The
group went there even though they
did not have the support of Sparta or
of the other Greek cities.
These Spartans understood the
risks, but they still decided to make a
stand and make others aware of the
danger, even if they themselves could
not hope to turn the tide.
Q.
WHAT ARE THE PRINCIPLES THAT
TIE THE CLUB TOGETHER?
A.
We stand for two main principles.
First, we want a transparent
debate on the theoretical underpin-
ning of much of current investment
theory and practice. We believe much
of it is misunderstood, misapplied or
incorrect.
Secondly, we want a move away
from complexity. It is not that we are
against complexity, but rather we are
against more complexity than neces-
sary. We believe in Occams razor,
which says, it is vain to do with more
things what can be done with fewer.
Q.
YOU ARE CALLING FOR IMMEDIATE
ACTION WHY THE RUSH?
A.
2008 has shown us very clearly
that decisions made by financial
agents on behalf of investors have
major ramifications on the entire
financial system and by extension on
our social and political systems as a
whole.
The 2008 financial crisis was never
resolved. While governments shored
up banks by pumping money into
them, they did not deal with the
underlying problems. Now many of
these governments are being chal-
lenged (Italy, Spain, Greece, Portugal
and Ireland) and we are not sure who
will be able to bail them out.
Part of the solution must be a more
rational application of our invest-
ments and the risk premia we demand
for it. This is no longer only an eco-
nomic or financial issue but also a
political one. For example, if we move
most of our investment capital to gov-
ernment debt, how do we finance
future investment and growth in our
societies?
Q.
WHY DO YOU FEAR A PERFECT
STORM?
A.
At present, there are several fac-
tors coming together, the most
dangerous being that as a result of
2008, governments and regulators are
more aware of risk, and have put risk
models in place, which have created a
false sense of security.
Secondly, in an attempt to hedge
tail risk, financial engineers are
applying the same flawed academic
logic and creating products based on
the same academic foundations that
produced the catastrophe of 2008.
These are being sold to investors with
the hope that this time it will be dif-
ferent.
Thirdly, the regulators, in a logical
and laudable attempt to reduce risk,
are pushing institutions into expen-
sive and possibly risky assets but
which they see as less risky, namely
sovereign debt. If you are a Spanish
institution, would you view sovereign
debt as a risk-free asset? What if you
are Greek? British?
Finally, everyone seems to have
missed the point that politics is back
as a major factor in the economy,
from Wall Street to Berlin. Globally,
we may be at the end of the great age
of political stability that followed the
end of the Second World War.
Q.
WHAT ECONOMIC TRENDS CONCERN
YOU?
A.
The current global recession is so
deep that in the UK QE1, with a
1.5 per cent positive effect on GDP,
only managed to keep the economy
flat. That is a great concern.
The same seems to be true around
the globe, yet we do not have a clear
pathway out of the current situation.
Relying on China is something of a
red herring, as it is bound into the
developed economies also.
Q.
WHAT INVESTMENT TRENDS
CONCERN YOU?
A.
One trend that is of concern is
the over-reliance on complicated
risk models and investment strategies
with an underlying belief that some-
how, one can find a mathematical
way to skew risk/reward towards
reward with little or no risk.
Q.
HOW DO YOU INTEND TO GET THE
MESSAGE OF UNCERTAINTY AND
COMPLEXITY ACROSS?
A.
Our first stage was the launch of
The 300 Club in the public
domain to raise awareness.
Next, we intend to do this through
a series of open papers, which we
hope will incite industry discussion,
as well as through debates, confer-
ences and in the media.
A new faction
contesting the
foundations of
how to invest
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Choose from Dealing, Shares ISA or SIPP Dealing accounts. en select the investments
that you think will yield the best returns Shares and Bonds, Unit Trusts and ETFs,
UK and international exchanges. As a selftrader, youre the one whos in control.
Whatever you trade, your rst three months are commission free (up to 100 trades,
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competitive fees.
Of course, commission-free doesnt mean risk-free. Any investments you choose are
subject to market and exchange rate movements. e value of investments, and
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capital you invest.
When you trade with us, you can also take advantage of our trading tools and
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F
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Be a selftrader. O
pen an account today
CITYA.M. 20 OCTOBER 2011 25
Wealth Management | Investment Insight
MEMBERS OF THE 300 CLUB
Saker Nusseibeh, Hermes
Zuhair Mohammed, Aon Hewitt
William De Vijlder, BNP Paribas
Amin Rajan, Create Research
Lars Dijkstra, Kempen
Adriaan Ryder, QIC
Robert Talbut, Royal London
Alan Brown, Schroders
Dylan Grice, Socit Gnrale
Yves Choueifaty, TOBAM Here they defended themselves to the last
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Wealth Management | Institutional FX
26 CITYA.M. 20 OCTOBER 2011
Achieving best execution of FX trades
A
S EUROPEAN regulatory authori-
ties move to regulate the execu-
tion of trades in other financial
instruments, forex still operates
outside of these regulations. But does it
need to be regulated in order to achieve
improved execution?
The European Commission will today
publish a proposal for a review of the
Markets in Financial Instruments
Directive (Mifid 2), which will extend the
reach of the original directive. Forex
trades are unlikely to be affected by the
new rules. But should there be a best exe-
cution requirement in FX? Or indeed, is a
best execution requirement possible?
Commissioner Michel Barnier will pres-
ent the Commissions proposals on the
review and the Market Abuse Directive at
a press conference in Brussels at midday.
The original incarnation of Mifid creat-
ed a pan-EU regulatory framework. And
todays revision is unlikely to be a case of
dotting the is and crossing the ts:
Mifid 2 is no light-touch amendment to
the existing Mifid requirements, says
Harry Eddis, counsel at global law firm
Linklaters. Along with Emir, Mifid 2 (and
Mifir) as currently proposed, looks set to
introduce significant changes to market
infrastructure in the EU that could radi-
cally affect the way investment firms do
Optimal transactions are difcult
to dene, and almost impossible
to legislate for, writes Craig Drake
Many just want it all
done as swiftly as
possible
Picture: REX
business.
Originally, Mifid concentrated mainly
on equity trades. However, the new legisla-
tion will be much more concerned with
other instruments, such as commodities,
bond trading and OTC derivatives.
DEFINING FX BEST EXECUTION
Broadly speaking, best execution in FX is
not simply a case of best price. On the buy
side, firms seeking best execution will
look to the total cost of the trade to exe-
cute, allocate and settle that trade as well
as the operational risk in movement of
cash between counterparties.
The question also arises as to who a best
execution regulation would apply to.
There are so many different people with-
in the forex sphere, says Toby Corballis,
chief executive of Rapid Addition. Point
to point traders, people arbitraging across
exchanges or people changing money to
go on holiday. Corballis adds that while a
forex regulation may be included in
todays review, it is unlikely. Such a regu-
lation would be very expensive and diffi-
cult to implement.
To say that there is no directive on best
execution is not to say that policies do not
exist. The ability to achieve best execu-
tion in the FX market is not a recent phe-
nomenon, says Mark Warms, general
manager for FXall. Indeed, the tools and
technology which help FX market partici-
pants to implement best practice process-
es have been available for a number of
years.
The bottom line is that best-execution is
something that clients want. And with
this demand, there is industry pressure to
achieve this end, without the require-
ment for regulatory heavy-handedness.
BAE Systems . . . . . .278.5 -6.7 363.9 248.1
Chemring Group . . . .518.0 -11.5 736.5 485.0
Cobham . . . . . . . . . . .177.9 5.6 245.6 168.5
Meggitt . . . . . . . . . . . .364.9 -6.0 397.6 303.9
QinetiQ Group . . . . . .117.4 1.2 136.3 96.7
RoIIs-Royce Group . .709.5 9.5 711.0 557.5
Senior . . . . . . . . . . . . .160.4 1.5 190.6 131.1
UItra EIectronics . . .1605.0 15.0 1895.0 1305.0
GKN . . . . . . . . . . . . . .185.9 -9.2 245.0 157.0
BarcIays . . . . . . . . . . .179.5 4.4 333.6 138.9
HSBC HoIdings . . . . .522.5 2.3 730.9 473.6
LIoyds Banking Gr . . .33.1 1.1 71.9 27.6
RoyaI Bank of Sco . . .24.5 0.7 49.0 19.7
Standard Chartere .1409.0 19.0 1950.0 1169.5
AG Barr . . . . . . . . . .1205.0 4.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .308.3 1.5 503.5 289.9
Diageo . . . . . . . . . . .1331.0 51.0 1348.0 1112.0
SABMiIIer . . . . . . . . .2283.0 22.0 2340.0 1979.0
AZ EIectronic Mat . . .244.2 -4.9 338.1 206.1
Croda Internation . .1805.0 0.0 2081.0 1367.0
EIementis . . . . . . . . . .135.0 2.3 187.4 104.8
Johnson Matthey . .1766.0 20.0 2119.0 1523.0
Victrex . . . . . . . . . . .1156.0 18.0 1590.0 1025.0
YuIe Catto & Co . . . . .167.4 -2.5 253.0 148.0
LON GD ONCE FIX AM...........1651.00 -7.00
SILVER LDN FIX AM ..................31.39 0.41
MAPLE LEAF 1 OZ ....................33.80 0.65
LON PLATINUM AM................1525.00 -1.00
LON PALLADIUM AM...............614.00 8.00
ALUMINIUM CASH .................2157.00 -51.00
COPPER CASH ......................7270.50 -295.00
LEAD CASH...........................1905.50 -84.50
NICKEL CASH......................18575.00 -175.00
TIN CASH.............................20600.00-1350.00
ZINC CASH ............................1831.50 -68.00
BRENT SPOT INDEX................110.13 -1.51
SOYA .....................................1250.75 -2.25
COCOA..................................2571.00 -40.00
COFFEE...................................231.50 -2.50
KRUG.....................................1716.00 16.30
WHEAT ....................................147.38 0.70
AIR LIQUIDE........................................91.21 -0.53 100.65 80.90
ALLIANZ..............................................79.26 3.30 108.85 56.16
ANHEUS-BUSCH INBEV ....................39.70 0.24 46.33 33.85
ARCELORMITTAL...............................13.58 0.05 28.55 10.47
AXA......................................................10.80 0.41 16.16 7.88
BANCO SANTANDER...........................6.15 0.08 9.47 5.05
BASF SE..............................................50.10 -0.77 70.22 42.19
BAYER.................................................44.09 -0.33 59.44 35.36
BBVA......................................................6.45 0.14 9.82 4.94
BMW ....................................................55.01 -0.07 73.85 43.49
BNP PARIBAS.....................................31.78 1.84 59.93 22.72
CARREFOUR ......................................17.02 0.28 34.29 14.66
CRH PLC .............................................13.44 0.49 17.40 10.28
DAIMLER.............................................36.12 -0.37 59.09 30.52
DANONE..............................................46.70 0.30 53.16 41.92
DEU.BOERSE OFFRE ........................41.01 0.13 55.75 35.46
DEUTSCHE BANK..............................27.53 1.12 48.70 20.79
DEUTSCHE TELEKOM.........................9.45 0.09 11.38 7.88
E.ON.....................................................17.40 0.39 25.54 12.50
ENEL......................................................3.46 0.06 4.86 2.81
ENI .......................................................15.72 0.27 18.66 11.83
FRANCE TELECOM............................12.94 0.04 17.45 11.12
GDF SUEZ ...........................................21.82 0.06 30.05 18.32
GENERALI ASS...................................12.90 0.25 17.05 10.34
IBERDROLA..........................................5.23 0.04 6.50 4.29
INDITEX ...............................................65.50 -0.88 68.23 50.92
ING GROEP CVA...................................6.24 0.25 9.50 4.21
INTESA SANPAOLO.............................1.34 0.09 2.53 0.85
KON.PHILIPS ELECTR.......................14.90 0.23 25.45 12.01
L'OREAL..............................................79.61 0.98 91.24 68.83
LVMH..................................................113.00 -1.00 132.65 94.16
MUNICH RE.........................................97.15 1.29 126.00 77.80
NOKIA....................................................4.48 0.08 8.49 3.33
REPSOL YPF.......................................21.62 0.00 24.90 17.31
RWE.....................................................30.31 1.17 55.88 21.22
SAINT-GOBAIN...................................33.02 -0.33 47.64 26.07
SANOFI ................................................50.24 0.05 56.82 42.85
SAP......................................................41.85 -0.03 46.15 32.88
SCHNEIDER ELECTRIC.....................44.62 -0.28 61.83 35.94
SIEMENS .............................................73.40 -0.83 99.39 62.13
SOCIETE GENERALE.........................19.45 0.21 52.70 14.32
TELECOM ITALIA..................................0.89 0.01 1.16 0.70
TELEFONICA ......................................15.10 0.08 19.69 12.50
TOTAL..................................................37.51 0.45 44.55 29.40
UNIBAIL-RODAMCO SE...................144.40 1.10 162.95 124.05
UNICREDIT............................................0.96 0.05 2.03 0.64
UNILEVER CVA...................................24.34 0.04 24.90 20.90
VINCI ....................................................34.83 0.09 45.48 29.49
VIVENDI ...............................................16.02 -0.13 22.07 14.10
VOLKSWAGEN VORZ.......................114.85 0.70 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5450.49 40.14 0.74
FTSE 250 INDEX . . . . . . . 10231.83 52.94 0.52
FTSE UK ALL SHARE . . . . 2810.05 19.62 0.70
FTSE AIMALL SH . . . . . . . . 712.80 2.95 0.42
DOWJONES INDUS 30 . . 11504.62 -72.43 -0.63
S&P 500 . . . . . . . . . . . . . . . 1209.88 -15.50 -1.26
NASDAQ COMPOSITE . . . 2604.04 -53.39 -2.01
FTSEUROFIRST 300 . . . . . . 968.11 5.98 0.62
NIKKEI 225 AVERAGE. . . . 8772.54 30.63 0.35
DAX 30 PERFORMANCE. . 5913.53 36.12 0.61
CAC 40 . . . . . . . . . . . . . . . . 3157.34 16.24 0.52
SHANGHAI SE INDEX . . . . 2377.51 -5.97 -0.25
HANG SENG. . . . . . . . . . . 18309.22 232.76 1.29
S&P/ASX 20 INDEX . . . . . . 2549.30 14.60 0.58
ASX ALL ORDINARIES . . . 4274.80 25.30 0.60
BOVESPA SAO PAOLO. . 54966.13 -65.80 -0.12
ISEQ OVERALL INDEX . . . 2620.28 15.74 0.60
STI . . . . . . . . . . . . . . . . . . . . 2778.97 34.80 1.27
IGBM. . . . . . . . . . . . . . . . . . . 891.52 5.10 0.58
SWISS MARKET INDEX. . . 5699.98 17.47 0.31
Price Chg %chg
3M........................................................77.70 -0.66 98.19 68.63
ABBOTT LABS ...................................53.25 0.81 55.61 45.07
ALCOA ..................................................9.77 -0.37 18.47 8.45
ALTRIA GROUP..................................27.32 -0.21 28.14 23.20
AMAZON.COM..................................231.53 -12.35 246.71 156.57
AMERICAN EXPRESS........................46.13 -0.55 53.80 38.75
AMGEN INC.........................................57.32 0.04 61.53 47.66
APPLE...............................................398.62 -23.62 426.70 297.76
AT&T....................................................29.09 -0.12 31.94 27.20
BANK OF AMERICA.............................6.40 -0.24 15.31 5.13
BERKSHIRE HATAW B.......................74.11 -0.96 87.65 65.35
BOEING CO.........................................63.11 -0.36 80.65 56.01
BRISTOL MYERS SQUI ......................32.35 -0.21 33.20 20.05
CATERPILLAR....................................83.56 -1.16 116.55 67.54
CHEVRON.........................................102.24 -0.71 109.94 80.41
CISCO SYSTEMS................................17.16 -0.35 24.60 13.30
CITIGROUP.........................................29.39 -0.49 51.50 21.40
COCA-COLA.......................................67.03 0.29 71.77 59.80
COLGATE PALMOLIVE......................92.18 -0.16 94.89 74.39
CONOCOPHILLIPS.............................69.56 0.35 81.80 58.37
DU PONT(EI) DE NMR........................43.80 -1.18 57.00 37.10
EMC CORP..........................................23.72 -0.27 28.73 19.84
EXXON MOBIL....................................78.43 -0.46 88.23 63.47
GENERAL ELECTRIC.........................16.52 -0.19 21.65 14.02
GOOGLE A........................................580.70 -9.81 642.96 473.02
HEWLETT PACKARD.........................24.98 -0.63 49.39 19.92
HOME DEPOT.....................................35.40 -0.55 39.38 28.13
IBM.....................................................177.39 -1.51 190.53 136.70
INTEL CORP .......................................24.24 0.84 26.78 18.90
J.P.MORGAN CHASE.........................32.25 -0.62 48.36 27.85
JOHNSON & JOHNSON.....................62.64 -1.78 68.05 57.50
KRAFT FOODS A................................34.85 -0.39 36.30 24.30
MC DONALD'S CORP ........................89.62 -0.02 91.22 72.14
MERCK AND CO. NEW......................32.54 -0.25 37.68 29.47
MICROSOFT........................................27.13 -0.18 29.46 23.65
OCCID. PETROLEUM.........................83.95 -1.03 117.89 66.36
ORACLE CORP...................................31.49 -0.39 36.50 24.72
PEPSICO.............................................62.11 -0.30 71.89 58.50
PFIZER ................................................18.81 -0.16 21.45 16.25
PHILIP MORRIS INTL .........................66.03 -0.28 72.74 55.85
PROCTER AND GAMBLE ..................64.75 -0.17 67.72 56.57
QUALCOMM INC ................................52.60 -1.96 59.84 42.45
SCHLUMBERGER ..............................67.90 -2.01 95.64 54.79
TRAVELERS CIES..............................54.39 2.93 64.17 45.97
UNITED TECHNOLOGIE ....................73.26 -0.86 91.83 66.87
UNITEDHEALTH GROUP...................46.45 1.11 53.50 34.50
VERIZON COMMS ..............................37.05 -0.19 38.95 31.60
WAL-MART STORES..........................56.25 0.36 57.90 48.31
WALT DISNEY CO ..............................33.61 -0.33 44.34 28.19
WELLS FARGO & CO.........................25.18 -0.68 34.25 22.58
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 ............................0.500 0.00
LIBOR Euro - overnight ..................0.856 0.00
LIBOR Euro - 12 months ................2.070 0.00
LIBOR USD - overnight...................0.140 0.00
LIBOR USD - 12 months.................0.915 0.00
HaIifax mortgage rate .....................3.990 0.00
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.000 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................3.190 -0.56
European repo rate.........................0.729 0.00
Euro Euribor ....................................1.161 0.00
The vix index ...................................33.43 1.97
The baItic dry index ........................2.136 -0.02
Markit iBoxx...................................233.44 -0.02
Markit iTraxx..................................178.54 3.88
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.3771 0.0039
C/ 0.8726 0.0020
C/ 105.77 0.2978
/C 1.1461 0.0025
/$ 1.5786 0.0082
/ 121.23 0.6407
FTSE 100
5450.49
40.14
FTSE 250
10231.83
52.94
FTSE ALLSHARE
2810.05
19.62
DOW
11504.62
72.43
NASDAQ
2604.04
53.39
S&P 500
1209.88
15.50
RPC Group . . . . . . . .344.0 4.0 384.8 215.4
Smiths Group . . . . . .940.5 16.0 1429.0 907.5
Brown (N.) Group . . .262.0 -4.3 311.2 252.5
Carpetright . . . . . . . . .483.0 -4.0 835.5 472.5
Debenhams . . . . . . . . .62.8 -1.5 77.4 51.2
Dignity . . . . . . . . . . . .835.0 -4.5 854.5 633.0
Dixons RetaiI . . . . . . .11.1 -0.2 28.5 10.6
DuneImGroup . . . . . .473.4 0.5 550.0 383.9
HaIfords Group . . . . .320.7 -1.3 459.7 268.6
Home RetaiI Group . . .99.5 -20.2 235.0 97.9
Inchcape . . . . . . . . . .315.0 0.5 425.4 268.1
JD Sports Fashion . .821.5 -13.5 1030.0 753.5
Kesa EIectricaIs . . . . .92.9 1.7 174.0 80.0
Kingfisher . . . . . . . . .256.0 0.4 287.1 217.0
Marks & Spencer G . .328.9 -0.5 427.5 301.8
Mothercare . . . . . . . .191.1 -6.6 627.5 179.6
Next . . . . . . . . . . . . .2540.0 -18.0 2649.0 1868.0
Sports Direct Int . . . .229.6 -8.1 266.2 125.5
WH Smith . . . . . . . . . .552.0 2.5 558.5 433.8
Smith & Nephew . . . .576.5 4.0 742.0 521.0
Synergy HeaIth . . . . .832.0 -19.0 981.0 736.0
Barratt DeveIopme . . .90.3 2.7 119.0 67.5
BeIIway . . . . . . . . . . . .701.0 2.5 753.5 511.0
BaIfour Beatty . . . . . .248.3 -9.4 357.3 228.6
GaIIiford Try . . . . . . . .435.4 -2.6 530.0 276.5
Kier Group . . . . . . . .1371.0 -1.0 1418.0 1097.0
Drax Group . . . . . . . .479.8 19.6 536.5 353.6
SSE . . . . . . . . . . . . . .1343.0 3.0 1423.0 1108.0
Domino Printing S . .538.5 10.5 705.0 434.3
HaIma . . . . . . . . . . . . .332.0 -0.4 429.6 306.3
Laird . . . . . . . . . . . . . .135.9 -2.1 207.0 127.9
Morgan CrucibIe C . .264.9 0.0 357.1 222.3
Oxford Instrument . .776.5 -6.5 1010.0 495.0
Renishaw . . . . . . . . . .918.0 47.5 1886.0 862.0
Spectris . . . . . . . . . .1183.0 9.0 1679.0 1039.0
Aberforth SmaIIer . . .516.5 -8.0 714.0 508.5
AIIiance Trust . . . . . .334.8 1.3 392.7 310.2
Bankers Inv Trust . . .387.1 9.1 428.0 346.5
BH GIobaI Ltd. GB .1190.0 -1.0 1210.0 1058.0
BH GIobaI Ltd. US . . . .12.0 0.1 12.2 10.4
BH Macro Ltd. EUR . . .19.3 0.0 20.1 15.8
BH Macro Ltd. GBP 1985.0 10.0 2070.0 1630.0
BH Macro Ltd. USD . . .18.9 0.0 20.1 15.8
BIackRock WorId M .612.0 10.0 815.5 574.5
BIueCrest AIIBIue . . .169.0 -0.9 176.2 162.4
British Assets Tr . . . .118.0 1.5 140.5 109.0
British Empire Se . . .453.0 3.0 533.0 409.9
CaIedonia Investm .1527.0 1.0 1928.0 1470.0
City of London In . . .283.0 2.8 306.9 257.0
Dexion AbsoIute L . .134.0 0.2 151.0 130.0
Edinburgh Dragon . .222.6 3.6 262.1 201.4
Edinburgh Inv Tru . . .461.8 6.7 492.2 414.9
EIectra Private E . . .1385.0 2.0 1755.0 1287.0
F&C Inv Trust . . . . . .285.8 3.1 327.9 261.5
FideIity China Sp . . . . .76.3 1.3 128.7 70.0
FideIity European . .1026.0 8.0 1287.0 912.0
HeraId Inv Trust . . . . .467.2 2.2 545.5 419.0
HICL Infrastructu . . . .117.2 0.1 121.3 112.7
Impax Environment . .93.5 0.3 130.5 88.5
JPMorgan American .830.0 5.0 916.0 721.5
JPMorgan Asian In . .191.0 2.0 250.8 170.1
JPMorgan Emerging .522.5 2.5 639.0 480.1
JPMorgan European .763.0 3.5 983.5 692.5
JPMorgan Indian I . . .368.0 6.1 502.0 350.0
JPMorgan Russian .495.1 10.1 755.0 415.1
Law Debenture Cor . .346.5 3.5 385.0 309.8
MercantiIe Inv Tr . . . .907.0 0.0 1137.0 856.5
Merchants Trust . . . .367.6 1.6 431.8 347.0
Monks Inv Trust . . . .324.5 3.5 367.9 298.1
Murray Income Tru . .618.0 4.0 673.0 568.0
Murray Internatio . . .884.0 7.0 991.5 818.5
PerpetuaI Income . . .250.3 -0.3 276.0 234.8
PersonaI Assets T .33200.0-180.0 33725.030210.0
PoIar Cap TechnoI . .344.0 3.0 391.2 299.5
RIT CapitaI Partn . . .1303.0 9.0 1334.0 1127.0
Scottish Inv Trus . . . .448.0 4.0 524.0 417.0
Scottish Mortgage . .657.0 14.0 781.0 586.5
SVG CapitaI . . . . . . . .206.3 -0.4 279.8 187.9
TempIe Bar Inv Tr . . .864.0 11.0 952.0 791.0
TempIeton Emergin .551.5 6.5 689.5 497.0
TR Property Inv T . . .168.1 -1.4 206.1 150.0
TR Property Inv T . . . .74.5 -0.4 94.0 69.5
Witan Inv Trust . . . . .445.7 6.7 533.0 401.5
3i Group . . . . . . . . . . .201.7 4.0 340.0 184.1
3i Infrastructure . . . .120.0 0.4 125.2 112.9
Aberdeen Asset Ma .182.3 -2.7 240.0 167.8
Ashmore Group . . . .317.8 -0.7 420.0 301.5
Brewin DoIphin Ho . .119.1 0.7 185.4 113.7
CameIIia . . . . . . . . . .8900.0-100.010950.08862.5
CharIes TayIor Co . . .139.5 -0.3 193.0 122.0
City of London Gr . . . .68.5 -2.5 93.6 68.5
City of London In . . .326.0 1.0 461.5 321.3
CIose Brothers Gr . . .716.5 -2.0 888.5 656.5
CoIIins Stewart H . . . .62.0 0.0 90.8 59.0
EvoIution Group . . . . .81.0 0.8 94.0 62.3
F&C Asset Managem .61.6 -0.2 92.9 56.1
Hargreaves Lansdo .489.5 1.3 646.5 402.5
HeIphire Group . . . . . . .3.0 0.1 33.0 2.2
Henderson Group . . .120.2 0.8 173.1 95.1
Highway CapitaI . . . . .14.5 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .418.6 0.6 570.5 383.7
IG Group HoIdings . .466.0 12.8 553.0 393.6
Intermediate Capi . . .233.0 6.7 360.3 197.9
InternationaI Per . . . .253.9 2.2 388.8 196.5
InternationaI Pub . . . .115.5 0.0 118.3 108.6
Investec . . . . . . . . . . .368.5 7.1 538.0 331.8
IP Group . . . . . . . . . . . .65.5 -0.3 65.8 27.9
Jupiter Fund Mana . .217.0 3.9 337.3 184.9
Liontrust Asset M . . . .58.5 -0.5 94.3 57.0
LMS CapitaI . . . . . . . . .60.0 0.5 64.8 44.8
London Finance & . . .22.5 0.0 23.5 16.5
London Stock Exch .885.0 -5.5 1076.0 685.5
Lonrho . . . . . . . . . . . . .14.8 0.0 19.8 12.5
Man Group . . . . . . . . .157.6 -0.7 311.0 150.0
Paragon Group Of . .157.0 0.2 206.1 134.6
Provident Financi . .1083.0 23.0 1124.0 728.5
Rathbone Brothers .1040.0 -4.0 1257.0 866.5
Record . . . . . . . . . . . . .24.0 0.0 46.0 20.3
RSM Tenon Group . . .24.0 0.5 66.3 20.3
Schroders . . . . . . . .1316.0 13.0 1922.0 1183.0
Schroders (Non-Vo .1126.0 10.0 1554.0 970.0
TuIIett Prebon . . . . . .369.9 8.9 428.6 327.8
WaIker Crips Grou . . .46.0 0.0 51.5 45.0
BT Group . . . . . . . . . .181.5 2.6 204.1 148.3
CabIe & WireIess . . . .35.3 0.7 54.1 31.3
CabIe & WireIess . . . .26.8 0.4 76.9 26.4
COLT Group SA . . . . .91.6 -0.5 156.2 90.4
KCOM Group . . . . . . . .69.5 0.5 84.0 47.5
TaIkTaIk TeIecom . . .131.2 1.3 168.3 119.8
TeIecomPIus . . . . . . .728.0 1.0 740.0 375.0
Booker Group . . . . . . .78.0 1.3 78.0 53.2
Greggs . . . . . . . . . . . .499.1 2.3 550.5 429.1
Morrison (Wm) Sup .302.9 1.9 308.3 262.7
Ocado Group . . . . . . . .86.4 -0.3 285.0 84.3
Sainsbury (J) . . . . . . .302.1 3.6 391.5 263.5
Tesco . . . . . . . . . . . . .403.6 -1.2 439.0 356.3
Associated Britis . .1078.0 -10.0 1182.0 940.0
Cranswick . . . . . . . . .663.5 -19.5 896.0 588.5
Dairy Crest Group . . .343.1 -2.1 424.9 325.0
Devro . . . . . . . . . . . . .245.0 -4.5 296.9 218.0
Premier Foods . . . . . . . .4.3 -0.1 35.1 3.8
Tate & LyIe . . . . . . . . .650.0 0.5 656.0 490.2
UniIever . . . . . . . . . .2075.0 7.0 2109.0 1777.0
Mondi . . . . . . . . . . . . .482.5 -4.8 664.0 450.1
Centrica . . . . . . . . . . .306.3 1.9 345.8 282.6
InternationaI Pow . . .331.9 4.9 448.6 279.4
NationaI Grid . . . . . . .636.5 -2.5 649.5 530.0
Pennon Group . . . . . .702.0 17.0 737.5 584.5
Severn Trent . . . . . .1527.0 6.0 1571.0 1350.0
United UtiIities . . . . .612.5 8.0 631.5 543.5
Cookson Group . . . . .476.9 3.9 724.5 395.8
DS Smith . . . . . . . . . .196.2 1.0 266.2 163.5
Rexam . . . . . . . . . . . .325.6 4.0 400.0 299.8
Price Chg High Low
BerkeIey Group Ho .1174.0 19.0 1299.0 789.5
Bovis Homes Group .460.5 0.4 464.7 326.5
Persimmon . . . . . . . .492.7 3.1 502.5 336.5
Reckitt Benckiser . .3303.0 -8.0 3648.0 3015.0
Redrow . . . . . . . . . . . .119.0 2.0 139.0 98.4
TayIor Wimpey . . . . . . .36.9 0.4 43.3 22.3
Bodycote . . . . . . . . . .270.0 -2.0 397.7 225.6
Charter Internati . . . .862.0 -1.0 876.5 538.5
Fenner . . . . . . . . . . . .330.0 -1.5 422.5 256.0
IMI . . . . . . . . . . . . . . . .801.0 0.0 1119.0 636.5
MeIrose . . . . . . . . . . .324.5 3.0 365.4 265.7
Northgate . . . . . . . . . .245.6 1.5 346.7 202.0
Rotork . . . . . . . . . . .1573.0 23.0 1858.0 1501.0
Spirax-Sarco Engi . .1771.0 1.0 2063.0 1649.0
Weir Group . . . . . . .1701.0 41.0 2218.0 1375.0
Ferrexpo . . . . . . . . . . .311.5 -4.0 499.0 238.7
TaIvivaara Mining . . .209.0 -1.4 622.0 205.0
BBAAviation . . . . . . .179.2 1.8 240.8 156.0
Stobart Group Ltd . . .124.3 0.3 163.6 122.0
AdmiraI Group . . . . .1225.0 -17.0 1754.0 1219.0
AmIin . . . . . . . . . . . . .307.3 1.8 427.0 270.6
Huntsworth . . . . . . . . .55.3 -2.9 85.0 55.0
Informa . . . . . . . . . . . .343.3 2.3 461.1 313.9
ITE Group . . . . . . . . . .174.0 -2.5 258.2 157.7
ITV . . . . . . . . . . . . . . . . .61.6 -0.4 93.5 51.7
Johnston Press . . . . . . .4.2 -0.5 13.5 4.2
MecomGroup . . . . . .134.5 -0.5 310.0 131.0
Moneysupermarket. .100.8 0.8 120.4 75.7
Pearson . . . . . . . . . .1169.0 11.0 1207.0 926.0
PerformGroup . . . . .210.0 9.0 234.5 150.0
Reed EIsevier . . . . . .525.0 -1.0 590.5 461.3
Rightmove . . . . . . . .1283.0 -1.0 1307.0 736.5
STV Group . . . . . . . . .100.0 4.0 168.0 90.3
Tarsus Group . . . . . .137.4 2.4 165.0 112.5
Trinity Mirror . . . . . . . .47.5 1.0 108.0 37.5
UBM . . . . . . . . . . . . . .488.5 6.7 725.0 416.0
UTV Media . . . . . . . . .126.0 2.3 150.0 101.0
WiImington Group . . .87.5 -4.0 183.0 82.5
WPP . . . . . . . . . . . . . .630.5 -3.0 846.5 578.0
YeII Group . . . . . . . . . . .3.8 0.1 16.1 3.7
African Barrick G . . .564.0 7.0 618.5 393.5
AIIied GoId Minin . . .147.0 -2.2 281.3 34.4
AngIo American . . .2271.0 1.0 3437.0 2138.5
AngIo Pacific Gro . . .259.7 4.7 369.3 237.9
Antofagasta . . . . . . .1076.0 5.0 1634.0 900.5
Aquarius PIatinum . .184.7 -1.8 419.0 163.1
BeazIey . . . . . . . . . . . .124.2 1.0 139.2 109.6
CatIin Group Ltd. . . .396.2 3.7 421.4 331.5
Hiscox Ltd. . . . . . . . . .384.5 1.7 424.7 340.5
Jardine LIoyd Tho . . .697.0 12.5 722.5 571.5
Lancashire HoIdin . . .744.0 6.0 745.0 529.0
RSA Insurance Gro . .112.8 0.3 143.5 106.0
Aviva . . . . . . . . . . . . . .339.3 6.0 477.9 275.3
LegaI & GeneraI G . . .104.5 -0.3 123.8 89.8
OId MutuaI . . . . . . . . .108.8 0.7 144.8 98.1
Phoenix Group HoI . .517.0 -2.0 699.5 451.1
PrudentiaI . . . . . . . . .631.0 12.0 777.0 509.0
ResoIution Ltd. . . . . .277.7 2.5 316.1 211.3
St James's PIace . . . .344.0 7.0 376.0 236.2
Standard Life . . . . . . .214.2 4.3 244.7 172.0
4Imprint Group . . . . .230.0 8.0 295.0 200.0
Aegis Group . . . . . . .138.7 4.4 163.5 119.4
BIoomsbury PubIis . . .98.0 0.0 138.0 95.1
British Sky Broad . . .710.0 34.5 850.0 618.5
Centaur Media . . . . . . .39.0 -0.3 73.0 36.0
Chime Communicati .200.0 -2.0 298.5 173.0
Creston . . . . . . . . . . . .84.5 -0.5 121.0 72.0
DaiIy MaiI and Ge . . .394.1 -1.8 594.5 343.4
Euromoney Institu . .617.0 15.5 736.0 522.5
Future . . . . . . . . . . . . . .10.0 0.0 30.0 9.8
Haynes PubIishing . .215.0 0.0 257.0 203.5
BHP BiIIiton . . . . . . .1890.0 -4.0 2631.5 1667.0
Centamin Egypt Lt . .107.5 1.6 197.1 89.7
Eurasian NaturaI . . .649.0 8.5 1125.0 522.0
FresniIIo . . . . . . . . . .1555.0 -42.0 2150.0 1223.0
GemDiamonds Ltd. .196.1 -1.9 306.0 179.8
GIencore Internat . . .407.5 5.5 531.1 348.0
HochschiId Mining . .455.3 -9.5 680.0 397.0
Kazakhmys . . . . . . . .874.5 0.0 1671.0 730.0
Kenmare Resources . .38.9 -0.2 59.9 18.9
Lonmin . . . . . . . . . . .1060.0 12.0 1983.0 974.5
New WorId Resourc .484.3 -6.7 1060.0 410.5
PetropavIovsk . . . . . .675.0 -2.5 1165.0 543.5
RandgoId Resource 6385.0 50.0 7215.0 4425.0
Rio Tinto . . . . . . . . .3138.0 -21.5 4712.0 2712.5
Vedanta Resources .1174.0 10.0 2559.0 948.0
Xstrata . . . . . . . . . . . .926.5 -9.9 1550.0 764.0
Inmarsat . . . . . . . . . . .465.5 8.4 719.5 389.7
Vodafone Group . . . .173.6 1.1 182.8 155.1
Genesis Emerging . .454.0 8.0 568.0 430.0
Afren . . . . . . . . . . . . . . .89.0 0.0 171.2 73.6
BG Group . . . . . . . . .1358.0 6.0 1564.5 1144.0
BP . . . . . . . . . . . . . . . .437.0 6.1 509.0 363.2
Cairn Energy . . . . . . .285.9 -0.2 469.7 261.4
EnQuest . . . . . . . . . . .101.7 -0.8 158.5 86.6
Essar Energy . . . . . .287.0 3.4 589.5 235.1
ExiIIon Energy . . . . . .264.2 -0.8 469.7 184.2
Heritage OiI . . . . . . . .230.3 4.8 486.0 190.0
Ophir Energy . . . . . . .227.2 1.7 299.0 184.5
Premier OiI . . . . . . . . .374.0 9.5 535.0 310.0
RoyaI Dutch SheII . .2222.0 35.0 2326.5 1883.5
RoyaI Dutch SheII . .2277.5 39.5 2336.0 1890.5
SaIamander Energy .201.5 -1.5 317.6 182.3
Soco Internationa . . .332.4 -5.5 400.0 279.8
TuIIow OiI . . . . . . . . .1434.0 24.0 1493.0 945.5
Amec . . . . . . . . . . . . .900.0 24.0 1251.0 740.5
Hunting . . . . . . . . . . .643.0 11.0 817.0 530.0
Kentz Corporation . .474.0 -6.0 494.5 275.5
LampreII . . . . . . . . . . .228.8 0.6 395.2 222.7
Petrofac Ltd. . . . . . .1332.0 9.0 1685.0 1108.0
Wood Group (John) .573.5 3.0 715.8 432.5
Burberry Group . . . .1255.0 10.0 1600.0 959.5
PZ Cussons . . . . . . . .359.1 7.1 409.0 320.5
Supergroup . . . . . . . .651.0 -6.0 1820.0 644.0
AstraZeneca . . . . . .2981.0 9.5 3334.0 2543.5
BTG . . . . . . . . . . . . . .276.0 0.4 309.7 210.1
Genus . . . . . . . . . . . . .981.5 -7.5 1111.0 800.0
GIaxoSmithKIine . . .1377.5 9.5 1390.0 1127.5
Hikma Pharmaceuti .630.0 16.0 900.0 555.5
Shire PIc . . . . . . . . . .2005.0 -26.0 2136.0 1454.0
CapitaI & Countie . . .170.1 1.6 203.7 142.5
Daejan HoIdings . . .2650.0 41.0 2954.0 2282.0
F&C CommerciaI Pr . .97.1 0.9 108.0 88.0
Grainger . . . . . . . . . . . .87.2 0.7 133.2 77.3
London & Stamford .118.6 0.0 140.0 112.9
SaviIIs . . . . . . . . . . . . .274.7 2.4 427.1 256.2
UK CommerciaI Pro . .77.8 1.2 85.5 70.4
Unite Group . . . . . . . .170.5 0.1 224.1 152.9
Big YeIIow Group . . .268.6 3.6 352.2 234.2
British Land Co . . . . .504.5 -6.5 629.5 452.0
CapitaI Shopping . . .333.7 5.0 424.8 296.4
Derwent London . . .1653.0 25.0 1880.0 1400.0
Great PortIand Es . . .352.4 1.3 445.0 317.4
Hammerson . . . . . . . .405.1 -3.1 490.9 353.0
Hansteen HoIdings . . .77.5 -1.1 89.5 70.0
Land Securities G . . .678.0 -8.5 885.0 616.0
SEGRO . . . . . . . . . . . .238.6 2.1 331.3 210.1
Shaftesbury . . . . . . . .497.0 5.8 539.0 431.7
Aveva Group . . . . . .1430.0 13.0 1799.0 1298.0
Computacenter . . . . .373.2 9.2 490.0 354.8
Fidessa Group . . . . .1695.0 55.0 2109.0 1409.0
Invensys . . . . . . . . . . .215.3 1.7 364.3 199.6
Logica . . . . . . . . . . . . .90.0 3.0 147.2 73.9
Micro Focus Inter . . .341.0 5.0 426.2 239.4
Misys . . . . . . . . . . . . .260.0 5.0 420.2 214.9
Sage Group . . . . . . . .275.4 0.0 302.0 231.7
SDL . . . . . . . . . . . . . . .652.5 -11.5 711.5 555.0
TeIecity Group . . . . . .582.0 0.0 594.0 430.0
Aggreko . . . . . . . . . .1743.0 4.0 2034.0 1394.5
Ashtead Group . . . . .159.8 9.0 207.9 99.4
Atkins (WS) . . . . . . . .519.0 -6.0 820.0 490.2
Babcock Internati . . .676.5 -2.0 733.0 513.5
Berendsen . . . . . . . . .442.0 0.5 568.0 391.3
BunzI . . . . . . . . . . . . .810.0 18.0 812.5 676.5
Cape . . . . . . . . . . . . . .460.2 -11.6 591.5 348.8
Capita Group . . . . . . .705.5 2.5 786.5 635.5
CariIIion . . . . . . . . . . .348.8 -0.2 403.2 298.8
De La Rue . . . . . . . . .840.0 2.5 854.5 549.5
DipIoma . . . . . . . . . . .302.0 -2.0 414.3 258.0
EIectrocomponents .208.2 0.3 294.9 182.2
Experian . . . . . . . . . . .757.0 7.0 833.5 665.0
FiItrona PLC . . . . . . . .350.5 -3.0 385.5 227.5
G4S . . . . . . . . . . . . . . .233.6 -7.9 291.0 219.9
Hays . . . . . . . . . . . . . . .74.8 1.7 133.6 66.6
Homeserve . . . . . . . .463.0 14.2 532.0 408.0
Howden Joinery Gr . .114.0 -2.0 127.5 75.4
Interserve . . . . . . . . . .308.4 -0.6 341.3 183.5
Intertek Group . . . . .1955.0 22.0 2148.0 1715.0
MichaeI Page Inte . . .369.0 14.0 567.0 338.7
Mitie Group . . . . . . . .241.0 1.0 244.0 194.1
Premier FarneII . . . . .172.9 2.4 308.8 144.5
Regus . . . . . . . . . . . . . .73.3 3.4 119.0 64.0
RentokiI InitiaI . . . . . . .68.4 -0.3 104.9 64.8
RPS Group . . . . . . . . .168.8 -2.2 253.0 156.6
Serco Group . . . . . . .505.0 8.4 633.0 490.9
Shanks Group . . . . . .109.7 3.6 130.9 103.0
SIG . . . . . . . . . . . . . . .101.2 1.7 153.5 83.8
SThree . . . . . . . . . . . .265.2 5.3 447.6 213.2
Travis Perkins . . . . . .836.0 4.5 1127.0 715.0
WoIseIey . . . . . . . . .1775.0 78.0 2261.0 1404.0
ARM HoIdings . . . . . .580.5 -11.0 651.0 338.9
CSR . . . . . . . . . . . . . .184.0 -3.1 447.0 183.1
Imagination Techn . .469.4 12.4 502.0 296.9
Pace . . . . . . . . . . . . . . .92.0 -0.6 231.8 88.1
Spirent Communica .125.5 -1.5 160.3 109.5
British American . .2800.0 21.0 2871.0 2282.5
ImperiaI Tobacco . .2199.0 20.0 2231.0 1784.0
Betfair Group . . . . . . .726.5 -8.5 1550.0 567.0
Bwin.party Digita . . .105.8 3.0 280.9 99.3
CarnivaI . . . . . . . . . .2187.0 11.0 3153.0 1742.0
Compass Group . . . .555.5 2.0 612.0 511.5
Domino's Pizza UK . .457.0 1.2 586.0 377.0
easyJet . . . . . . . . . . . .350.3 -0.1 479.0 301.0
FirstGroup . . . . . . . . .324.2 5.9 412.6 301.8
Go-Ahead Group . . .1470.0 0.0 1598.0 1139.0
Greene King . . . . . . .438.1 1.4 518.0 410.0
InterContinentaI . . .1082.0 -5.0 1435.0 955.0
InternationaI Con . . .163.7 1.2 305.0 141.6
JD Wetherspoon . . . .425.3 -1.1 468.3 380.5
Ladbrokes . . . . . . . . .134.3 0.3 155.3 114.0
Marston's . . . . . . . . . . .95.0 1.8 117.1 84.6
MiIIennium& Copt . .413.3 -0.1 600.5 375.6
MitcheIIs & ButIe . . . .233.0 -3.0 361.0 216.4
NationaI Express . . .230.0 0.8 270.2 219.6
Rank Group . . . . . . . .126.1 -0.2 153.7 109.5
Restaurant Group . . .282.0 -4.9 335.0 254.9
Stagecoach Group . .240.3 -1.6 272.4 190.2
Thomas Cook Group .47.5 2.4 204.8 33.7
TUI TraveI . . . . . . . . . .158.5 -1.7 271.9 137.2
Whitbread . . . . . . . .1627.0 -8.0 1887.0 1409.0
WiIIiamHiII . . . . . . . . .217.4 -11.4 244.1 155.5
Abcam . . . . . . . . . . . .343.5 1.5 460.0 307.0
AIbemarIe & Bond . .318.0 -2.0 400.1 272.0
Amerisur Resource . . .11.8 0.0 29.0 9.5
Andor TechnoIogy . .505.0 2.0 685.0 340.0
ArchipeIago Resou . . .70.0 0.6 79.0 32.3
ASOS . . . . . . . . . . . .1456.0 11.0 2468.0 1229.0
AureIian OiI & Ga . . . .17.3 -0.3 92.0 16.0
Avanti Communicat .300.0 -3.5 735.0 248.5
Avocet Mining . . . . . .239.0 -3.0 286.8 173.8
BIinkx . . . . . . . . . . . . .147.3 0.5 158.0 70.5
Borders & Souther . . .50.3 0.5 73.0 43.5
BowLeven . . . . . . . . .109.5 -5.5 398.0 74.5
Brooks MacdonaId 1248.0 32.0 1372.5 940.0
Cove Energy . . . . . . . .81.0 -1.5 112.8 61.0
Daisy Group . . . . . . . .111.0 0.5 127.0 88.0
EMIS Group . . . . . . . .530.0 -15.0 580.0 396.0
Encore OiI . . . . . . . . . .79.0 2.3 151.5 40.8
Faroe PetroIeum . . . .157.0 3.0 218.3 130.0
GuIfsands PetroIe . . .186.0 0.0 401.5 142.5
GWPharmaceuticaI . .93.5 1.5 130.0 83.0
H&T Group . . . . . . . . .335.0 -4.0 395.0 277.0
Hamworthy . . . . . . . .524.5 -7.5 705.0 373.8
Hargreaves Servic .1065.0 0.0 1080.0 676.0
HeaIthcare Locums . . . .5.0 0.3 5.2 4.9
Immunodiagnostic . .865.0 -35.0 1218.0 768.5
ImpeIIamGroup . . . .330.0 0.0 387.5 155.0
James HaIstead . . . . .460.0 0.0 495.0 345.5
KaIahari MineraIs . . .236.3 -6.8 301.0 161.5
London Mining . . . . .331.0 -11.0 436.5 283.0
Lupus CapitaI . . . . . . .97.5 0.4 150.0 86.0
M. P. Evans Group . .400.0 0.0 500.5 371.0
Majestic Wine . . . . . .420.5 3.8 510.0 347.0
May Gurney Integr . .295.0 3.0 300.0 211.0
Monitise . . . . . . . . . . . .36.0 -0.5 39.0 18.5
MuIberry Group . . . .1401.0 -4.0 1920.0 520.0
Nanoco Group . . . . . . .43.5 -0.8 115.8 42.5
NauticaI PetroIeu . . .309.0 -4.0 547.0 223.5
NichoIs . . . . . . . . . . . .545.0 -3.8 579.0 410.0
Numis Corporation . . .96.0 3.5 137.8 89.0
Pan African Resou . . .12.3 0.0 14.5 9.4
Patagonia GoId . . . . . .55.3 0.8 70.0 20.3
Prezzo . . . . . . . . . . . . .56.0 2.0 71.5 53.3
Pursuit Dynamics . . .195.0 1.5 700.0 160.5
Rockhopper ExpIor .202.5 -2.8 386.0 141.0
RWS HoIdings . . . . . .425.0 -5.0 479.8 266.5
Songbird Estates . . .118.0 1.5 160.3 110.3
VaIiant PetroIeum . . .485.3 8.3 750.0 435.0
Young & Co's Brew . .605.0 -10.0 712.0 530.0
Ashtead Group . . . . .159.8 6.0
Renishaw . . . . . . . . . .918.0 5.5
Thomas Cook Group .47.5 5.4
British Sky Broadc . .710.0 5.1
Regus . . . . . . . . . . . . . .73.3 4.8
WoIseIey . . . . . . . . .1775.0 4.6
Perform Group . . . . .210.0 4.5
Drax Group . . . . . . . .479.8 4.3
Diageo . . . . . . . . . . .1331.0 4.0
MichaeI Page Inter . .369.0 3.9
Home RetaiI Group . . .99.5 -16.9
WiIIiam HiII . . . . . . . . .217.4 -5.0
GKN . . . . . . . . . . . . . .185.9 -4.7
BaIfour Beatty . . . . . .248.3 -3.7
Sports Direct Inte . . .229.6 -3.4
Mothercare . . . . . . . .191.1 -3.3
G4S . . . . . . . . . . . . . . .233.6 -3.3
Cranswick . . . . . . . . .663.5 -2.9
FresniIIo . . . . . . . . . .1555.0 -2.6
Cape . . . . . . . . . . . . . .460.2 -2.5
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
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NONEQUITY INVESTM. COMM.
Tsy 3.250 11 . . . . .100.22 -0.14 103.0 100.2
Tsy 9.000 12 . . . .105.80 -0.78 114.6 105.8
Tsy 5.000 12 . . . .101.68 -0.04 106.1 101.6
Tsy 5.250 12 . . . .102.94 -0.03 107.5 102.9
Tsy 4.500 13 . . . .105.36 -0.04 108.8 105.3
Tsy 2.500 13 . . . .284.69 -0.12 287.7 277.6
Tsy 8.000 13 . . . . .114.16 -0.04 120.7 114.0
Tsy 5.000 14 . . . . .111.77 -0.07 114.1 109.2
Tsy 4.750 15 . . . . .113.83 -0.17 114.8 108.6
Tsy 8.000 15 . . . .127.59 -0.17 131.3 123.7
Tsy 7.750 15 . . . .101.75 -0.15 108.8 101.4
Tsy 4.000 16 . . . . .112.31 -0.13 113.4 104.9
Tsy 2.500 16 . . . .340.94 -0.34 342.2 310.2
Tsy 8.750 17 . . . .139.15 -0.45 141.9 132.9
Tsy 12.000 17 . . .123.98 0.00 134.0 122.5
Tsy 1.250 17 . . . . .114.41 -0.41 115.3 106.7
Tsy 5.000 18 . . . . .119.60 -0.16 121.0 109.7
Tsy 4.500 19 . . . . .116.96 -0.20 118.8 105.4
Tsy 3.750 19 . . . . .111.54 -0.19 113.5 99.4
Tsy 2.500 20 . . . .351.86 -0.45 355.6 312.4
Tsy 4.750 20 . . . . .119.08 -0.27 121.4 106.6
Tsy 8.000 21 . . . .147.88 -0.34 151.8 133.8
Tsy 1.875 22 . . . .122.79 -0.64 125.4 111.3
Tsy 4.000 22 . . . . .113.55 -0.36 115.6 99.0
Tsy 2.500 24 . . . .312.82 -0.74 320.1 273.5
Tsy 5.000 25 . . . .124.72 -0.40 126.9 107.4
Tsy 4.250 27 . . . . .116.20 -0.39 118.1 97.9
Tsy 1.250 27 . . . . .116.68 -0.88 121.0 104.6
Tsy 6.000 28 . . . .140.55 -0.38 142.9 119.5
Tsy 4.750 30 . . . .123.71 -0.20 125.6 103.0
Tsy 4.125 30 . . . .296.70 -0.75 305.4 261.2
Tsy 4.250 32 . . . . .115.79 -0.28 117.9 96.0
Tsy 4.250 36 . . . . .115.82 -0.26 117.6 95.0
Tsy 4.750 38 . . . .125.09 -0.24 126.9 102.8
Tsy 4.500 42 . . . .121.59 -0.25 123.0 98.9
% %
ALTERNATIVE ENERGY
Wealth Management
27 CITYA.M. 20 OCTOBER 2011
Business Features| Careers
28
CITYA.M. 20 OCTOBER 2011
M
ATT Silvester is head of training
on the Professional Trader
Programme at Schneider Trading
Associates. He sees himself as a
sergeant-major figure weeding out the
weak and cultivating those who have what
it takes to sit at the arcade a facility that
provides support to independent traders.
The initial programme lasts for four
weeks, it is full-time and free. Many fail,
but for those who make it, a comprehen-
sive three-year post-course coaching and
mentoring scheme follows. Competition is
tough. Schneider receives around 800 CVs
a month, interviews between 150 and 200
in a group format, which includes an apti-
tude test and suitability interview. Of those
invited onto the course, only a couple will
remain. Silvester says in the initial stages
people who want to be traders can be spot-
ted very easily. Although he notes those
that arent as driven initially often pick up
the trading bug in due into course.
Arcade trading wont suit everyone.
Silvester explains that most are self-
employed and the money you pay yourself
is what you make. He doesnt employ peo-
ple, he gives them an opportunity to work
for themselves. But he will send you pack-
ing if you lose too much or break the rules.
After all: If you lose 10,000, you have no
downside Ill wear the loss. It comes
down to his judgement of who is good and
who is not. He describes the opportunity as
a free call for the trader. For Schneider
the training programme is a loss leader
they make money from successful traders
who stay on to trade on their arcade.
There is no such thing as a free lunch
Schneider takes a cut from successful
traders. If you are any good and you make
10,000, you can have 7,000 and Ill have
3,000, says Silvester. But this is
no different from any other trad-
ing job. Only St Pauls current
resident Marxists could take
exception with this. Silvester
acknowledges that the down-
side of training is time and lost
earnings. Many of his prospec-
tive traders are just out of univer-
sity so they rely on their
parents. If not, you will
need savings. It used to
take six months, says
Silvester, to determine
whether someone
had the right skills.
However, with cur-
rent market volatil-
ity he says this has stretched out to nearer
nine to twelve months.
Economists have a term called oppor-
tunity costs, which they use to
describe the cost in money, time
and loss of any other pleasure of
undertaking any action. The
Schneider Professional Trader
Programme provides you with the
chance to see if you have what it takes
to be a trader with very little cost
you can leave at any time. Its a
potentially beneficial arrange-
ment and even if you fall at
the first hurdle, at least
you will have tried. If suc-
cessful, you will be a
trader earning a liv-
ing by pitting your wits
in the worlds markets.
L
IKE plenty of others in the City, Julie
Meyer is a busy lady. Ever since she
appeared on the BBCs online
Dragons Den shes been bombarded
with requests from everyone: entrepre-
neurs who want investment, businesses
who want her to join their board and
pesky journalists wanting quotes. All
that, of course, on top of her day job as
chief executive of Ariadne Capital. Its
very nice being in demand. However, its
important not to let your inbox drive
your personal work or business strategy.
Thats even harder, of course, if you arent
your own boss. What is the answer when
a manager turns up your work pressure?
LESS PRODUCTIVE
Rachel Brushfield, a careers coach at
Energise, says that feeling overwhelmed
makes you less productive: The stress
makes even the best of us procrastinate.
But what can you do if the boss keeps
asking for more? Its a tricky one,
admits Personal Career Managements
Corinne Mills. You will be judged by
what your boss thinks, so you have to
manage their expectations.
SITTING THEM DOWN
The best approach is just to sit them
down and explain that its too much. It
might be scary, but he or she will proba-
bly respect you for it and you never
know it might even increase your
chances of promotion. It demonstrates
that you can tackle problems head on.
But how do you break it to them?
Career coach Peter Botting says: Put it to
them simply: you can either do these
tasks or those tasks. You cant do them
all. What would they like you to do?
Its not easy though. Meyer says it takes
charm and determination, but you have
to fit others around the execution of your
work rather than fitting your work
around the demands of others.
Rupert Lee-Browne of Caxton FX has a
similar view: I rigidly structure my time,
allocating time for my direct reports.
KEEPING THE QUALITY
Brushfield says its easier to explain if you
express that the quality of your work
might dip if you take it all on.
Above all, be confident saying no. You
need to say it with conviction, offering
alternative ways to get things done.
Botting has similar ideas: If things
become truly unmanageable, suggest
they hire a junior
member of staff to
help. If the manage-
ment agrees, youve
effectively bagged your-
self a promotion.
Lee-Browne says
that this blunt
a p p r o a c h
builds trust:
You have
to be prag-
matic in
bus i ne s s .
Being firm
and honest
about whats
a c hi e v a b l e
goes a long
way.
Find out if you
can cut it as an
arcade trader
Schneider will give you the opportunity to
try your hand at trading, says Philip Salter
Betting the house on
discovering trading
talent (above)
Matt Silvester from
Schneider Trading
Associates (right)
Taking on too much makes you stressed and less effective. Donata Huggins nds
out how you can stop the demands on your working day from career experts
Overwhelmed? Sometimes you have to say no
I
have written a lot about the iPhone 4S.
Before I ever laid hands on one I had
churned out countless paragraphs, cov-
ered each twist in the saga, vomiting
Apple stories like some grotesque human
Rube Goldberg machine.
If you threw all these words into a bag,
shook it up and handed it to troupe of mon-
keys, they could maintain a giant game of
Scrabble right through the process of evolu-
tion without having to reuse a letter. By the
time theyd lost fur, fashioned rudimentary
weapons and started killing each other,
theyd be subliminally programmed to wor-
ship and adore the 4S, having seen the let-
ters repeated so often in The Holy Word
Game That We Have Always Played Since
Time Immemorial. This would explain how
Apple managed to sell 4m of them in just
three days; the very mention of its name
triggering something primordial in peoples
brains, leading them Pied Piper-like to the
doors of the Apple store.
Of course, there are problems with this
theory. The monkeys may have ended up
worshipping the Opsi4n Eh instead, having
never seen the letters put in the right order,
and that doesnt even exist. What a pointless
civilisation that would have been. And how
would I have travelled back in time to give
the monkeys the words? It would imply I
was some god-like figure. And thats for you
to say, not me.
Anyway, I dont get paid to write about
monkeys. I do that for pleasure, in my spare
time, from the comfort of my own bedroom.
Whatever the reason for the record 4S sales
and lets not completely rule out Monkey
Scrabble its done pretty well for itself.
Especially given that, on the face of it, its
identical to the last one. The iPhone 4 is a
great phone; the 4S just builds on it, like put-
ting a pretty roof garden on a skyscraper.
Put the two head-to-head and you can see
that the 4S which has a dual core A5 chip
is quicker, with better load times and
faster browsing. But its an incremental
change; a second here, half a second there.
Other improvements are more striking:
graphics render noticeably better if
Nintendo was a person like me or you, rather
than an intangible company, it would be
holding its head in its hands, wondering who
is going to buy its 3DS console now and
the eight megapixel camera catches up with
the top end of the market.
But the 4Ss best trick, its star attraction,
is Siri. Using voice recognition software usu-
ally involves repeatedly smashing your head
against a wall of incomprehension. Siri is dif-
ferent. After getting to grips with him, which
takes a while to begin with, it's hard not to
be impressed (in the UK Siri is a stern gentle-
man. In the US she's a woman. It's not clear
why). Yesterday I told Siri to send me a
reminder when I stepped outside my flat to
go back to collect my lunch, which I forget
daily, like an unintelligent animal, unable to
learn from my mistakes. Through geo-map-
ping and the new Reminders feature, he did;
as I went out he told me to turn around and
look in the fridge. Pret is now 4 poorer. This
could be the start of a beautiful relationship.
The 4S wont be enough to convince the
Android hardcore to jump aboard (even if
you set fire to their ship they would take
their chances with the inky blackness of the
ocean). For everyone else, the 4S pushes
Apple a little farther out of reach.
iPhone 4S, available from vodafone.co.uk
T
HE e-reader has reached adulthood,
and bloomed with the addition of a
touchscreen. Do touchscreen e-read-
ers look better? Yes: they look more
sleek and almost sexy. Are touchscreens
necessary? Perhaps not.
The reader experience is not so different
to what we had when we were thumbing
tiny keys, but, with the exception of the
iPad, the touchscreen adds a silky, pleas-
ant quality to the whole experience.
With choice of e-readers rapidly expand-
ing as people increasingly leaving paper
books behind, we roundup the latest
touchscreen models, including the yet-to-
Helena Lee on the new crop of
touchscreen e-readers
When touching and reading combine
The reason for 4m sales of iPhone
4S? Monkey scrabble, of course
SONY READER TOUCH
PRS-650, 200
A compact six inches, sleek in black,
silver and red, this reader looks
good. Like the Kindle, its equipped
with the best E-ink Pearl touch-
screen technology, which delivers a
more high contrast screen. More
expensive than the Kindle Touch
(should it launch here), and the
Kobo, though its a good product,
we cant help wondering why youd
plump for Sony.
www.sony.co.uk/hub/reader-ebook
KOBO TOUCH, 110
Is WHSmiths agreement with
Kobo to sell its Touch a useful
service or a strategy for self-
preservation? Probably both. Its
a way to keep the newsagent
relevant, and the tablet is not
too bad. Our very own Steve
Dinneens verdict on the tiny
Touch (the screen is six inches
and can fit in your suit jacket
pocket) is that though the book-
store lacks Amazons finesse, its
a surprisingly adept challenger
to the Kindle Fire.
www.kobobooks.com/touch
IPAD 2,
STARTS AT 399
Where the iPad 2 really comes
into its own is magazines. Not
any Tom, Dick or Harry maga-
zine, but one specifically
designed for the device. The
user experience is a dream if
you like the depth of built-in
videos, clever formats and
vibrant colour. However, the
reflective screen is not to every-
ones tastes as it can make
reading in sunlight difficult, and
is an expensive option for a
pure reading experience.
store.apple.com/uk
KINDLE TOUCH 3G, $149 (3G
AND WI-FI): US ONLY
Not yet available in UK, the Kindle Touch
launches in the US at the end of November.
Lighter and silver-coloured, it is part of the
legion of new Kindle launches (including the
Fire). It is keyboardless, and the touchscreen
has the latest e-ink technology. Pros are that
you wont have to connect to Wi-Fi. Cons are
that theres no confirmation of when (or even
whether) its coming to the UK. Do we need a
touchscreen version of an already great prod-
uct? We shall wait and see. www.amazon.com
Lifestyle | Technology
29
THE iPHONE 4S
STEVE DINNEEN
The Family Meal:
Home cooking with Ferran Adri
Ferran Adri
19.95, Phaidon
W
HERE the allure of Jamie Olivers
and Nigellas books comes from
the idea that youll cook like
them, The Family Meal is less
cook like Ferran, but eat like Ferran.
The recipes are a fresh insight into the
working life at the now closed former best
restaurant in the world, El Bulli. These are
the meals the staff ate every day and the
wonder is that the family managed to
find the time to cook for each other (75
people) on top of all the three Michelin
starred stuff.
To cook for 75 people, you need meticu-
lous planning, and meticulous this is. Here
we have the Usborne book of El Bulli: pre-
scriptive, simple and accessible. You dont
need prior knowledge of technicals such as
fish-gutting because every recipe is pic-
tured step-by-step each box armed with
speech bubble comments seen last in
Asterix books. The recipes are organised in
fascinating meals three courses, balanced
and varied.
Adri normalises odd cuts. Veal is veal
cheek, not chop. Lamb with mustard and
mint is lamb neck. The step-by-step guide
kept me on the straight and narrow when-
ever I was unsure as I cooked the lamb, and
helpfully told me that while
it was in the oven, I should
be getting on with the
chocolate truffles. I do have
a quibble with recipes that
call for foam (are you
equipped with a siphon? Im
not, but then, Im still sav-
ing for that ice-cream
machine). Some things will
sound strange (crisp
omelette, for instance), and
there is the Spanish pen-
chant for peppers and salt cod (no
surprise there). But, once youve made that
leap of faith, youll be just as convinced as I
am.
R
USSELL NORMAN was the former
operations director at Caprice
Holdings, where he launched con-
cepts such as the Ivy Club with
Mark Hix, chef director at the time. He left
in 2008 to set up Polpo, a Venetian bacaro,
which serves small Italian plates in an
informal setting. Following Polpos suc-
cess (which was recently named 25th best
restaurant in UK), hes gone on to open
Polpetto, da Polpo and Spuntino, an
American diner, all in just two years
(along with his partner Richard Beatty).
Mishkins is his fifth restaurant and will
open on 21 November.
WAS IT DIFFICULT OPENING POLPO IN A
RECESSION?
Lots of people lost their jobs so I dont take
it lightly, but it was the best thing for my
little company. When the recession hit I
was at Caprice Holdings, and the job
parameters altered. It became more about
looking after the existing sites and less
about project development. I wanted to be
realising concepts, and I thought, if I cant
do it for my employers, maybe I can do it
for myself. I was going from one end of the
spectrum at Caprice to the very opposite
and [created] a restaurant that would be
very relevant in a recession: stripped back,
bare bricks, no tablecloths, very inexpen-
sive, great value: all of the things that Ive
always loved about those downtown
scruffy joints in New York. They didnt
really exist in London; they do in New
York.
COULD THE CONCEPT HAVE BEEN
ANYTHING? DID IT HAVE TO BE A VENETIAN
BACARO?
It could have been anything. In fact the
two ideas came separately the idea for a
downtown, relaxed neighbourhood joint
was one thing. Then, I got really into
Venice and enjoyed those wine bars
where you stood up and had a few glasses
of wine and pointed at the food in front of
you [cicheti]. My idea initially was to have
a proper bacaro, no chairs, no tables, but I
still dont think Londons ready for that.
Polpo was a combination of two cities
the cool relaxed vibe of New York, and the
small plate dining that I love from Venice.
HOW HAS POLPO CHANGED THE WAY THAT
LONDON EATS?
There werent any little places like Polpo
and Spuntino, which were relatively inex-
pensive and launched on a shoestring.
Polpo helped people realise that they
could [launch these restaurants too] if
they had a good concept, a good idea of
location, didnt make things too compli-
cated, stuck to what they knew and what
they were good at.
WHY DO YOU LIKE SOHO AS A LOCATION?
With Spuntino [his American diner] it was
the last opportunity to get a restaurant
site in a part of Soho that was disappear-
ing. Its flanked on all sides by porn shops,
peep shows, clip joints, drugs being sold
on the streets its just real genuine seedy
Soho. As you sit in Spuntino, you see three
signs: DVD XXX in neon, peep show 2
in red light, and live girls. That view of
those three signs are really important.
Thats the identity of Spuntino.
TELL ME ABOUT MISHKINS, YOUR NEW
JEWISH DELI
Im always using the words sort of in
front of it because its not kosher, and its
not a traditional Jewish restaurant. Its a
sort of sexy, fun version of a Jewish deli.
Theres a lot of East London caff in it and
that strong Jewish tradition around
Whitechapel and Bethnal Green thats
pretty much disappeared. It wont all be
matzo ball soup, lox bagels and salt-beef
sandwiches, were definitely having fun
with the menu as well. Well have cod
cheek popcorn: cod cheeks the size and
shape of scallops dipped in tempura-like
light batter, then fried. And there will be
great cocktails were going back to the
thirties and forties to look at gin cock-
tails that were very popular in this coun-
try.
DO YOU THINK NIGELLA LAWSON WOULD
ENJOY YOUR SORT OF JEWISH DELI?
Well, I hope so. Shes been to Polpo. Ive
seen her there, at least once, if not more.
But after doing a bit of research and
speaking to well known Jews, theyve
asked the same question will you be
doing pork? And Ive said well, would
you like us to do pork? And theyve all
said the same thing: oh yeah [he nods
vigorously].
YOU DONT OPERATE RESERVATIONS AT
YOUR RESTAURANTS [EXCEPT AT
POLPETTO]. HOW ARE YOU FINDING THAT?
Everyone says these no reservation
places, you have to go at really crap times.
Lifestyle | Food & Drink
30 CITYA.M. 20 OCTOBER 2011
Reinventing
the old-school
bar legends
L
EGENDARY venues are currently undergo-
ing reboots all over London. Home Houses
newest portal to hedonism, The Vaults,
draws inspiration from Studio 54 for a
modern twist on the glory days of disco. This
intimate space has a private entrance leading to
a clandestine leather-clad door complete with
chain-mailed peepholes. Inside, vaulted rooms of
rich copper and gold hues mix with the ultra-
modern to striking effect, creating an exciting
new take on decedent after-hours partying. The
VIP rooms have cutting edge technology, art
and sculpture, including X-Boxes, karaoke
machines, burlesque stages and an anything-
goes attitude.
Epitomising old school reinvented, The
Arts Club on Dover Street was founded by
Dickens but its recent relaunch has firmly
placed it in the 21st century. The opening of
their new night lounge Club Nouveau is gen-
erating even more interest partly thanks to
Director of Music Mark Ronson, and co-
owner Gwyneth Paltrow who has already
turned in a trademark Forget You perform-
ance. Mica Paris, Ronnie Wood and Ronson
himself have also graced the central stage
(which has a serious sound system) and is set
to showcase emerging artists and live bands.
Down the road on Old Park Lane, The Met
Bar has opted to offer access to non-mem-
bers and has undergone a sexy revamp fol-
lowing the charity eBay auction of the former
bar. It now incorporates a sleek black lava-
stone bar capped with leather, back-painted
glass and gold tables, a raised private booth
and mural art by British artist Giles Miller.
Rock and roll is still the order of the day.
The Cuckoo Club, another enduring hotspot
with Rock routes, has enlisted the iconic
Barbara Hulanicki to complete their redesign
incorporating neon art work from Kerry Ryan
(longtime Emin collaborator) as well as work
from other significant artists. The look and
feel still screams exclusive fun but now has
an arty twist. Embassy is also shortly to be
reinvented with new restaurant Kitchen Jol
Antuns on the ground-floor of their land-
mark Mayfair site. Therell be an understated-
chic interior evocative of mid-20th century
Riviera glamour with Carrera marble topped
bar, classic French limestone tile flooring,
Slim Aarons prints and a couple of Tracey
Emins neons too not to mention superlative
Provenal cuisine from the eponymous chef.
Beefy Sloane Street staple The Rib Room
has also just been renovated a la Martin
Brudnizki and features a glamorous new bar
and cigar terrace.
Tim Badham is the founder of Innerplace,
Londons leading entertainment concierge.
Experts in access to exclusive members clubs,
bars, restaurants and VIP events. www.inner-
place.co.uk. @InnerplaceLDN
GOING
OUT
TIM BADHAM
Under the arches at Home House
An easy-to-follow
recipe collection of
the meals eaten by
staff at El Bulli
Learning to cook El Bulli-style
Above: The Soho-
based Russell Norman
Following Sohos
Norman invasion
Polpos Russell Norman talks to Helena Lee
about restaurants in a recession, the seedy side
of Soho and why hes bored of Italian small plates
But, I love crap times. My favourite time
to eat is midday. And my favourite time
to eat supper is six oclock. I couldnt be
happier eating early for lunch and early
for supper.
WHERE ELSE IS EXCITING IN LONDON AT
THE MOMENT?
I really like Brawn out in Columbia Road
Market. Everyone loves the original
[Terroirs], but I think Brawn is a far better
restaurant. Morito, which is Moros baby
sister next door, and Koya on Frith Street
are also huge favourites. Really simple,
delicious, freshly made udon noodles.
Fantastic. And I like what the guys have
done up at Riding House Cafe.
WHATS UN-EXCITING YOU?
Im going to say something quite contro-
versial Im a bit bored with Italian small
plates now [laughs]. So many other peo-
ple seem to be doing it now as well.
ZIZZI, FOR ONE
Tell me about it, I know I know. Its so
upsetting! And Im going to put my neck
on the line here the thing that Im not
interested in trying are all of the new
steak houses that are coming up. With
one very obvious exception
Hawksmoor, Guildhall. I think there is
only so much steak you can have. Youve
got 34 from Caprice Holdings a steak-
house, Wolfgang Puck a steakhouse. Im
much more interested in small places,
like Duck Soup, Brawn, Morito, I think
theyre much more interesting.
HAVE YOU GOT YOUR EYE ON YOUR NEXT
RESTAURANT?
What, after Mishkins? Steady on, its not
even built yet!
T
E
R
R
E
S
T
R
I
A
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HIDDEN
BBC1, 9PM
Harry returns from Paris desperate to
figure out who he can trust and how
he can save himself. Conspiracy
thriller, starring Philip Glenister.
CORONATION STREET
ITV1, 8.30PM
Eileen confronts Paul at the fire
station after Marcus confesses what
he saw, and Rosie vows to get Jeff out
of her mums life.
BEENYS RESTORATION
NIGHTMARE CHANNEL4, 8PM
Sarah Beeny continues the challenge
of saving East Yorkshire stately home
Rise Hall from ruin, beginning with the
restoration of a dining room.
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmLive Premier League
Snooker 11pmThe Rugby Club
12amInternational One-Day
Cricket 2amPremier League
World 2.30amThe Rugby Club
3.30amInternational One-Day
Cricket 5.30am-6amPremier
League World
SKY SPORTS 2
7pmAmericas Cup Uncovered
7.30pmPremier League World
8pmInternational One-Day
Cricket 10pmTime of Our Lives
11pmWWE: Late Night Raw
1amWWE: NXT 2amRacemax
3am-4amRingside
SKY SPORTS 3
7pmLive PGA Tour Golf 10pm
European Tour Golf 12amRingside
1am-4amPGA Tour Golf
BRITISH EUROSPORT
5.30pmLive WTA Tennis
7.15pmATP Tennis 8.45pm
Champions Club 8.55pmMotoGP
10.25pmWorld Superbikes
11.55pm-12.05amChampions
Club
ESPN
5.30pmLive UEFA Europa League
Football 8pmLive UEFA Europa
League Football 10.30pmWorld
Series of Poker Europe 11.30pm
ESPN Press Pass 12amUEFA
Europa League Highlights 1am
Live Major League Soccer 3am
UEFA Europa League Highlights
4amESPN Press Pass 4.30am
Planet Speed 5amUFC: The
Ultimate Fighter
SKY LIVING
7pmCriminal Minds: Sean Patrick
Flanery guest stars. 8pmRinger
9pmFour Weddings US 10pm
Signed By Katie Price 11pmBones
12amCriminal Minds 1amCSI
2.40amMaury 3.30amBones
4.20amNothing to Declare
5.10am-6amJerry Springer
BBC THREE
7pmTop Gear 8pmDont Tell the
Bride 9pmUp for Hire Live 10pm
EastEnders 10.30pmUp for Hire
Live 11pmFamily Guy 11.45pm
American Dad! 12.30amUp for
Hire Live 2amDont Tell the Bride
3amWilfred 3.20amJono:
Finding My Family on Facebook
4.20am-5.15amDont Tell the
Bride
E4
7pmHollyoaks 7.35pmHow I Met
Your Mother 8pmThe Big Bang
Theory 8.30pmPerfect Couples
9pmHow I Met Your Mother
9.30pmHappy Endings 10pmThe
Inbetweeners 10.35pmThe
Inbetweeners Rude Road Trip
11.10pmShow and Tell 11.55pm
Chris Moyles Quiz Night 12.50am
The Big Bang Theory 1.35am
Scrubs 2.25amHow I Met Your
Mother 2.50amShow and Tell
3.35amChris Moyles Quiz Night
4.20amRules of Engagement
4.40amGlee 5.25am-6am
Switched
HISTORY
7pmAmerica: The Story of the US
8pmPawn Stars 8.30pm
American Restoration 9pmIce
Road Truckers 10pmStorage
Wars 11pmPawn Stars 11.30pm
American Restoration 12amIce
Road Truckers 2amOil Riggers
3amAmerica: The Story of the US
4amPawn Stars 4.30amStorage
Wars 5am-6amAncient
Discoveries
DISCOVERY
7pmMythbusters: Testing a
water-powered stun gun. 8pm
Wheeler Dealers 9pmIce Pilots
10pmFactory Line 11pmWeird or
What? Scientists explain bizarre
events. 12amBear Grylls: Born
Survivor 1amAlone in the Wild
2amDeadliest Catch 3.50am
Wildest Africa 4.40amHow the
Universe Works 5.30am-6am
Destroyed in Seconds
DISCOVERY HOME &
HEALTH
7pmBirth Stories 8pmI Didnt
Know I Was Pregnant 8.30pmIm
Pregnant and 55 Years Old 9pm
My Naked Secret 10pmMy
Strange Addiction 11pmBorn
Schizophrenic: Januarys Story
12amMy Naked Secret 1amMy
Strange Addiction 2amBorn
Schizophrenic: Januarys Story
3amI Didnt Know I Was
Pregnant 3.30amIm Pregnant
and 55 Years Old 4amA Baby
Story 5am-6amDeliver Me
SKY1
7pmThe Simpsons 8pm
Futurama: The Professor chooses
his successor. 8.30pmThe
Simpsons 9pmDiversity Live: The
Diversitoys Tour 10pmHouse
11pmRoss Kemp on Gangs 12am
Law & Order 1amRoad Wars
1.50amUK Border Force 2.40am
Lost 4.20amA Different Breed
5.10am-6amTop Design
BBC2 ITV1 CHANNEL4 CHANNEL5
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&
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmEastEnders: BBC News
8pmWatchdog
9pmCHOICE Hidden
10pmBBC News
10.25pmRegional News
10.35pmQuestion Time
11.35pmThis Week
12.20amHoliday Weatherview
12.25amSign Zone: The Great
Fuel Robbery Panorama
12.55amCountryfile
1.55amAntiques Roadshow
2.55amReel History of Britain
3.25am-6amBBC News
6pmEggheads
6.30pmStrictly Come Dancing
It Takes Two
7pmA History of Ancient
Britain: Neil Oliver explores the
legacy of the Romans. Last in
the series.
8pmThe Great British Bake
Off Revisited
9pmMixed Britannia
10pmMock the Week Again
10.30pmNewsnight: Weather
11.20pmBurnistoun
11.50pmWomen!
12.20amDamages
1amBBC News 3.20amClose
4am-6amBBC Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmEddie Izzard Didnt
We Fix Famine?: Tonight
8pmEmmerdale
8.30pmCHOICE Coronation
Street
9pmJoanna Lumleys Greek
Odyssey
10pmITV News at Ten
10.30pmLondon News 10.35pm
The Jonathan Ross Show11.35pm
The Late Debate 12am71 Degrees
North 12.55amZone; ITV News
Headlines 3amBritish Touring Car
Championship Highlights
4.15am-5.30amITV Nightscreen
6pmThe Simpsons 6.30pm
Hollyoaks 7pmChannel 4 News
7.55pmHippo: Wild Feast Live 8pm
CHOICE Beenys Restoration
Nightmare 9pmEducating Essex
10pmRamsays Kitchen
Nightmares USA 11.05pmRandom
Acts 11.10pmThe Secret
Millionaire 12.10amChannel 4
Presents Liz Johnson Into the
Blue 12.15amFilm Show12.45am
Music on 4: Professor Green
Unseen: After Hours 1.15am4Play:
T.E.E.D 1.30amEmbarrassing
Bodies 2.25amSouthland 3.10am
Accidentally on Purpose 3.35am
Unreported World 4am
Catastrophe 4.55amCountdown
5.45am-6.05amThe TV Book Club
6pmHome and Away
6.25pmOK! TV
7pm5 News at 7
7.30pmLive UEFA Europa
League Football: Tottenham
Hotspur v Rubin Kazan
(Kick-off 8.05pm).
10.15pmBig Brother
11.15pmBig Brothers Bit on
the Side
12.15amSuperCasino
4amThe Family Recipe. With
Italian chef Antonio Carluccio.
4.05amMichaelas Wild Challenge
4.30amMichaelas Wild Challenge
4.55amAnimal Rescue Squad
5.10amHouseBusters
5.35am-6amHouse Doctor
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8
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9
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 ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
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 Rhododendron-
like shrub (6)
6 Musical note having the
time value of an eighth
of a whole note (6)
7 Daybreak (4)
8 Double-reed
instrument (7)
10 Loud utterance
of emotion (3)
12 International games,
especially in cricket (4,7)
15 Consumption (3)
16 Shop where foodstufs
are sold (7)
19 Celestial body (4)
20 One of four playing-
card suits (6)
21 Bring about (6)
DOWN
1 Kidnap (6)
2 Ever (6)
3 Shade of blue tinged
with green (4)
4 ___ Christian
Andersen,
storyteller (4)
5 Turns into (7)
8 Dome-shaped
dessert (5)
9 Grilled food on a
skewer, served with
peanut sauce (5)
11 Make a new
request to be
supplied with (7)
13 Move rapidly (6)
14 Clandestine (6)
17 Short, abrupt (4)
18 Ascend (4)
P
E
C
A
P R
S
U
E
4


4
4

4

S L O P E S C O O P
C R N R I
R O C O C O E L A N
E L R Y E E
A M E N T E P I D
M A N H S N P
U N T I E F L U E
O A B A A O
P E A R S T A Y U P
A D T S L
L I B Y A C H O K E
8 9 5 6 7 3
4 5 1 2 3 2 6 1
9 7 2 3 1 4
8 9 2 4 7 8 7
6 3 4 1 8 2 9 5
9 5 5 1
6 4 7 1 3 9 5 8
7 2 3 2 6 9 8
6 9 7 8 7 9
2 1 7 1 2 3 5 6
9 3 8 1 2 4
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
APOLOGISE
Lifestyle | TV&Games
CITYA.M. 20 OCTOBER 2011 32
Sport
33 CITYA.M. 20 OCTOBER 2011
FRANCE coach Marc Lievremont
insists he will be delighted to disap-
point the purists if it means caus-
ing a major upset in Sundays
World Cup final against New
Zealand.
Les Bleus, the overwhelming
underdogs, have won few admirers
with their style of play in an
improbable run to the tourna-
ments climax in Auckland.
But Lievremont, who has kept
faith with the team that controver-
sially beat Wales in last weekends
semi-final as he prepares for his last
match in charge, is unmoved.
If we have to win it the same
way we beat Wales, I will accept
that with great pleasure, he said.
The problem with a
lot of people is that
they have serious
holes in their memo-
ry. The history of
French rugby, even if
it displeases some
people, has always
been made of
ups and
downs. Some
matches that
were not
good, some
won through
courage, like
last week.
H o o k e r
W i l l i a m
Servat, No8
Imanol Harinordoquy, scrum-half
Dimitri Yachvili and fly-half
Morgan Parra are all injury doubts,
but Lievremont has named them in
his team.
Despite the odds, and losing to
the All Blacks 37-17 in the pool
stage, he is optimistic of
denying the hosts their
first World Cup since
1987.
Every time we
play the All Blacks
its always the
same they are
always the
favourites, he
added. I
believe in our
team and we
can win.
Lievremont happy to shun
flair in bid to end on a high
FORMULA ONE world champion
Sebastian Vettel has urged motor-
sport chiefs to keep trying to make
racing safer, after paying tribute to
tragic British IndyCar star Dan
Wheldon.
The death of Buckinghamshire-
born Wheldon in Sundays Indy 300
in Las Vegas has prompted fresh ques-
tions about the dangers even the
worlds best drivers are exposed to in
competition.
Vettel said: The last couple of years
weve had some big crashes and luck-
ily no big injuries or worse than that.
We should never give up on trying to
make racing safer in general. The
Red Bull driver spoke yesterday after
it emerged motorsports world gov-
erning body the FIA had been asked
to assist the IndyCar Series in probing
the 15-car pile-up that claimed two-
time Indy 500 winner Wheldons life.
Vettel called Wheldons passing a
big loss, adding: We always hope
there wont be any examples like that.
I think we have learned a lot from the
past. But there is always a certain risk
which we cant avoid which we are
ready to take into account. We love
racing, we love motorsport and it is
dangerous.
In light of Sundays accident
IndyCar have postponed a test of a
new car at the same Las Vegas circuit,
which had been due to take place yes-
terday and today.
Make racing
safer, urges
champ Vettel
BY FRANK DALLERES
MOTORSPORT

BY FRANK DALLERES
RUGBY UNION

SPORT | IN BRIEF
Jockeys seek urgent action
HORSE RACING: The Professional
Jockeys Association last night called for
swift action in amending the new whip
rules brought into effect last week.
Strike action had been narrowly averted
before representatives of the PJA,
including chief executive Kevin Darley
met with the BHA in London yesterday.
Darley said: There is now a process of
consultation and discussion involving
jockeys which should have happened
before the original announcement.
Gerrard feared for his career
FOOTBALL: Liverpool captain Steven
Gerrard admits he feared his recent
groin injury could have ended his career.
Gerrard made his first start in six
months following surgery on the groin
injury in last weekends 1-1 draw with
Manchester United. Without a doubt
the last six months have been the hard-
est of my career, he said. Its natural
that you have doubts. Different things
cross your mind from time to time.
Butt betrayed by agent
CRICKET : Former Pakistan captain
Salman Butt has told a court he was
betrayed by an ex-friend and agent who
claimed he was part of a match-fixing
scam. After hearing evidence that the
agent arranged to rig games against
England in 2010, Mr Butt said he had
misjudged Mazhar Majeed completely.
Results
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email sport@cityam.com
WHELDON TRIBUTE | Car named after Brit
INDYCAR manufacturer Dallara is to name its new car (above) after tragic British racer
Dan Wheldon. The 33-year-old, who died in the Indy 300 in Las Vegas at the weekend,
had been helping the Italian company to develop the vehicle by taking part in extensive
testing. The exact name for the chassis has not been revealed but chairman Gianpaolo
Dallara said: We will honour his memory for years to come. Picture: INDYCAR
CHELSEA manager Andre Villas-Boas
praised Fernando Torres after the revi-
talised strikers brace helped demolish
Genk and equal the clubs record
Champions League win.
Raul Meireles, Branislav Ivanovic
and Salomon Kalou also netted as the
Blues ran riot against the Belgian
champions.
But it was Torres, who is finally
rediscovering the form that persuaded
Chelsea to pay a British record 50m
for him in January, who shone the
brightest.
Fernando found scoring positions,
but we like to promote collective per-
formance as well as individual per-
formance, said Villas-Boas. We are
able to choose from the best. The
choice fell to Fernando today and he
performed very well.
Despite a planned boycott by some
fans over ticket price rises, more than
38,000 turned out, albeit boosted by at
least 1,000 giveaway seats, to see
Chelsea stride to within a win of qual-
ification for the last 16.
It was a very good display by the
team, very focused and very concen-
trated, and this was decisive, Villas-
Boas added. The boys kept going
through the first half fantastically
well, keeping the rhythm high. It was
a good result, it puts us in a good posi-
tion going ito Genk [next month].
Torres missed Saturdays Premier
League win over Everton due to sus-
pension but showed no early rustiness
on his return to the starting line-up,
hitting the post even before Chelsea
opened the floodgates.
First Meireles punished Genks
defence for standing off by drilling a
fizzing drive into the bottom-left cor-
ner on eight minutes.
Torres then took over, gathering
Frank Lampards pass and advancing
into the penalty area before stroking
low past goalkeeper Laszlo Koteles
three minutes later.
The Spaniard claimed his second of
the night, nipping in front of his
marker to glance home a right-wing
cross from Meireles just before the
half hour mark and Ivanovic made it
four before half-time with a header
from Maloudas free-kick.
Torres, who scored just one in his
first 24 Chelsea games but now has
four in four, should have completed
his hat-trick when Jose Bosingwa
crossed teasingly but his finish was
parried and Kalou gleefully poached
the rebound.
Croft stands by Johnson in
wake of disgusting criticism
Torres back
to his best
in Chelsea
Euro cruise
AUSTRALIA coach Robbie Deans has
offered his sympathy to Wales coun-
terpart Warren Gatland, who caused
a storm by admitting he considered
cheating in Saturdays World Cup
semi-final defeat to France.
Gatland has been criticised in some
quarters for confessing he discussed
asking a prop to feign injury in order
to force uncontested scrums, a move
that could have helped his side com-
bat having captain Sam Warburton
sent off.
Fellow New Zealander Deans,
whose side face Gatlands in tomor-
rows bronze final, was asked if he
had ever considered a similar ploy. He
said: I havent, but Ive been accused
of it.
Gatland was moved to ponder the
tactic by a sense of injustice at the red
card shown to Warburton, and Deans
added: If I was in Warrens shoes I
can understand his frustration.
The Wales coachs controversial
remarks are thought to have sur-
prised the International Rugby Board,
who are studying them but have yet
to announce if he will face action.
Deans, meanwhile, has rung the
changes for the match in Auckland,
with lock Nathan Sharpe set to win
his 100th cap in an all-new front row.
Full-back Kurtley Beale has been
recalled after recovering from a ham-
string injury while inside centre
Berrick Barnes replaces Pat McCabe.
Gatland backed by Deans
over cheating comments
BY FRANK DALLERES
FOOTBALL

5
0
CHELSEA
GENK
BY FRANK DALLERES
RUGBY UNION

ENGLAND lock Tom Croft has leapt to

the defence of under-fire national
team manager Martin Johnson,
labelling criticism of the former World
Cup winning skipper disgusting.
Johnson faces an uncertain future
after presiding over Englands equal
worst World Cup performance, which
was compounded by a series of off-
field scandals.
But Croft is adamant that Johnson,
whose current contract expires in
December, remains the ideal candi-
date to lead England into the next
World Cup on home soil in 2015.
The fact people are questioning
Johnno being manager is pretty dis-
gusting, he said.
I think he is the ideal man for the
job. I dont think any other team in
the world has such a prominent fig-
urehead. Hopefully he will decide to
stick with the job.
While Englands performances on
the field fell well below the required
standards, their exploits off it, chiefly
the infamous night out at a
Queenstown nightclub hosting a
dwarf-themed event and Manu
Tuilagis ferry jump, meant sympathy
for the Red Rose was in short supply.
Croft, though, denies indiscipline
played any great part in the teams
failings on the pitch, insisting the sto-
ries that surfaced were unworthy of
coverage.
He said: You come to expect the
media will pick up on things when
you are over there at the World Cup,
and I think the boys coped with it
pretty well.
There were some quite vicious
things written but we pulled together
as a squad. It didnt affect the way we
played on the pitch.
It was a little bit mystifying.
Sometimes you think people are just
looking for a story just to have a
snipe. That is the way it is and the
boys have to learn from that.
NO FRENCH THRILLS: PAGE 33
BY JAMES GOLDMAN
RUGBY UNION

Sport
34
ENGLAND manager Fabio Capello has
indicated Wayne Rooney is likely to
be included in his plans for Euro 2012
despite the suspension that will rule
his star striker out of the entire group
stage.
The Manchester United forward
was handed a three-match ban by
Uefa for the red card he picked up in
Montenegro earlier this month after
a disciplinary panel deemed his swipe
at Miodrag Dzudovic as assault.
Capello said the right mix of youth
and experience will be essential for
the Three Lions to succeed, while also
suggesting that he may include
Rooney in his 23-man squad despite
the length of the strikers ban.
He said: The young players are
really good and ready to play with the
seniors, and the experience of the
seniors is really important.
During the games we need some
leaders, people that know something.
Jack Wilshere is incredible
because he is so young. There are not
many young players in the world who
are better than the English ones.
But we also need the experience of
John Terry, Rio Ferdinand and Scott
Parker.
You need this kind of player, plus
Rooney, I hope.
Fabio hints
at Rooney
selection
Chelsea 3 2 1 0 8 1 7
Leverkusen 3 2 0 1 4 3 6
Valencia 3 0 2 1 2 3 2
Genk 3 0 1 2 0 7 1
GROUP E
TEAM PLD W D L F A PTS
Torres has scored
four goals in his
last four games
Picture: ACTION
IMAGES
Rooney was sent off against
Montenegro Picture: ACTION IMAGES
BY JAMES GOLDMAN
FOOTBALL

Ramseys late show has

Arsenal smiling once more
TOTTENHAM manager Harry
Redknapp has warned that the grow-
ing influence of foreign owners is
likely to lead to Premier League
games being played abroad.
Overseas owners have been accused
of wanting to make radical changes to
English football, notably changing
the way broadcast cash is divided and
even scrapping relegation.
Redknapp, whose side face Rubin
Kazan tonight in the Europa League,
said: You cant have too many for-
eign owners coming in here wanting
to change our game. Eventually, you
will end up playing loads of games
around the world. That will happen.
Spurs have just two fit central
defenders Sebastien Bassong and
Younes Kaboul for the visit of the
Russians, but Ledley Kings muscle
tear is not as bad as first feared.
Foreign owners
will take games
abroad Harry
ARSENAL manager Arsene Wenger
insisted that confidence is slowly start-
ing to flow again after Aaron Ramseys
injury-time goal secured a precious
Champions League victory which shot
the Gunners to the top of Group F.
Like Arsenal, Marseille have been
struggling domestically and thriving
in Europe, but Didier Deschamps side
were criminally unadventurous
against opposition who had gone
three-and-a-half years without keeping
a clean sheet away from home in this
competition.
Centre-halves Laurent Koscielny and
Per Mertesacker enjoyed reputation-
enhancing evenings to keep Marseille
at bay, before late substitute Ramsey
secured all three points with a tidy fin-
ish.
Arsenal now head the section with
two of their three remaining games at
home and look set for a 12th consecu-
tive year in the knockout stages, not
that Wenger is taking anything for
granted.
He said: Weve made a little step
forward but we have to be humble. We
are a team who must continue to grow
and we have to show that. The next
game at home against Marseille is very
important.
Yes [winning], it will help us, but if
you look back last five or six games you
will see we only have one defeat. We
are slowly getting there.
I felt like we needed to be patient
and intelligent. You could see our mid-
field had experience we didnt make
stupid mistakes and we didnt play stu-
pid balls. Its an important win but you
take any win away from home in the
Champions League.
Both sides were unfortunate not to
earn first-half penalties for handball
offences, while Theo Walcott and
Robin van Persie were both denied by
goalkeeper Steve Mandanda after the
break. But he was beaten late on when
his defenders failed to cut out substi-
tute Johan Djourous deep cross and
Ramsey, unmarked, fired low inside
the near post.
BY JAMES GOLDMAN
FOOTBALL

0
1
MARSEILLE
ARSENAL
FOOTBALL

FULHAM manager Martin Jol is confi-

dent about his sides chances against
Wisla Krakow in tonights Europa
League clash, despite being without a
handful of key players.
The Cottagers face the Polish cham-
pions without Danny Murphy, Clint
Dempsey and Bobby Zamora.
We took a few younger players
instead [rather than risking them]
like Kerim Frei, Alex Smith and
Marcel Gecov, said Jol, whose side
have garnered four points from their
opening two group games. That said,
I do not have any concerns before the
match. We have 22 good players, as
well as a few younger players. We
have a strong team overall.
Jol unconcerned
despite absence
of his big three
FOOTBALL

Finn puts Englands cause

before his need for speed
NORTHERN IRELANDS Rory
McIlroy failed to cap his break-
through year with victory in the 36-
hole PGA Grand Slam after
Americas Keegan Bradley prevailed
by a single shot in Bermuda.
The second day of the event con-
tested by the four winners the years
Majors began with Bradley and US
Open champion McIlroy tied on
four under.
But McIlroy fell away with three
consecutive bogeys from the sev-
enth and finished third at level par
after a disappointing 75.
Masters champion Charl
Schwartzel, four behind overnight,
birdied five holes in a row in a fine
65 to seal second, but McIlroys com-
patriot, Open champion Darren
Clarke, was nine over after a 74.
McIlroy failed to pick up a single
shot on day two but found himself
three clear after six opening pars,
with Bradley dropping three strokes
early on.
By the turn Schwartzel had
emerged as Bradleys main rival,
after the South African holed from
the bunker at the ninth to record
his fifth successive birdie.
However, Bradley, 22, recently
overlooked for Presidents Cup selec-
tion, opened up a one-shot lead at
the 10th following a superb up and
down from the sand for a birdie to
claim the $600,000 prize.
Bradley cashes in at Grand
Slam as McIlroy falters
BY JAMES GOLDMAN
GOLF

ENGLAND bowler Steven Finn is refus-

ing to abandon hope of achieving a
momentous series win in India
despite having been on the receiving
end of back-to-back thrashings.
Finn expects England to throw off
the shackles and produce the sort of
cricket that saw them outplay India
on home soil this summer starting
with todays third one-day match.
He said: Weve got nothing to lose
now were playing against the world
champions in their own conditions,
we have nothing to lose whatsoever.
In these next three games were
going to leave nothing in the dressing
room and were really looking for-
ward to these three games. We have
full belief that we can win them all.
Finn has caught the eye in the
opening two matches by clocking
impressive speeds of around 94mph,
but the Middlesex youngster insists he
will not be sidetracked from the old
virtues of line and length in an
attempt to generate extra pace.
It was great. But its not something
that is occupying my mind. If I can
bowl at 94mph consistently, then
great, he said. Its nice being refer-
enced in that bracket, but more
important is where the ball goes. At
what pace it does it is irrelevant.
BY JAMES GOLDMAN
CRICKET

TRAGIC RACER WHELDON TO

HAVE CAR NAMED AFTER HIM
INDYCAR MANUFACTURER IN TRIBUTE
TO BRITON: PAGE 33
Arsenal 3 2 1 0 4 2 7
Marseille 3 2 0 1 4 1 6
Olympiacos 3 1 0 2 4 4 3
Dortmund 3 0 1 2 2 7 1
GROUP F
TEAM PLD W D L F A PTS
Ramseys previous Champions League goal came back in 2008 Picture: ACTION IMAGES
Steven Finn has gone up a notch in this series
having reached speeds of 94mph but he still
has a way to go before he can match the
worlds fastest bowlers.
Shoaib Akhtar: 100mph v New Zealand 2002
Brett Lee: 97.8mhp v South Africa 2002
Nantie Hayward: 95.9mph v India 2001
Jason Gillespie: 95.6mph v South Africa 2002
Waqar Younis: 95.1mph v South Africa 1993
Allan Donald: 95mph v England 1998
Makhaya Ntini: 94.1mph v Australia 2002
Shane Bond: 94mph v Australia 2002
EXPRESS DELIVERY | FASTEST BOWLERS
35
CHELSEA directors last night
blasted internet and Twitter mis-
information in a fresh appeal for
fans to sell the freehold to
Stamford Bridge back to the club.
Writing in the club pro-
gramme, chairman Bruce Buck,
chief executive Ron Gourlay and
director Eugene Tenenbaum
insisted there were no hidden
agendas in their wish to buy
back the land.
We believe there has been a lot
of incorrect information spread
through social media and other-
wise regarding our proposal and
we have tried to correct the misin-
formation through meetings with
groups of shareholders, press
briefings and information on the
club website, they wrote. We
believe we have been transparent
and all our fans should rest
assured there are no hidden agen-
das.
Blues chiefs have offered the
12,000 shareholders in supporter-
led co-operative Chelsea Pitch
Owners (CPO) their money back
and season ticket incentives at
any new stadium if they sell.
But they are facing the prospect
of defeat in next weeks vote after
some shareholders launched a
campaign, SayNoCPO -- which has
a strong presence on Twitter and
Facebook -- urging others not to
accept the deal, which they fear
will precipitate the club leaving
its home of 106 years.
Buck, Gourlay and Tenenbaum
sought to allay those concerns in
their letter by insisting: It goes
without saying that a move to
another site in south or west
London would be our first choice.
No hidden
agenda, say
Blues chiefs
BY FRANK DALLERES
FOOTBALL

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