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FTSE 100 t5,527.16 -18.48 DOW t11,983.24 -61.23 NASDAQ t2,686.15 -11.82 £/$ 1.60 unc £/¤ 1.16 unc ¤/$ 1.38 unc
Fear stokes
search for
jobs in City
CITY workers are staking out new job
opportunities as the threat of redun-
dancy lingers over the financial sector.
Despite fewer vacancies becoming
available, the number of professionals
entering the jobs market spiked in
October, according to two separate sur-
veys released this morning.
Morgan McKinley reported a nine
per cent rise in the number of people
seeking new employment opportuni-
ties in financial services.
“Whilst the increase may be
enhanced by recent redundancies, it
also reflects the uncertainty hanging
over the hiring market,” said chief
operations officer Andrew Evans. “The
uncertainty is encouraging individu-
als to examine their options before the
traditional slowdown in hiring that
comes towards the end of the year.”
Fellow recruitment firm Astbury
Marsden reported an eye-watering 48
per cent jump in the number of City
workers looking for new jobs.
Bankers and fund managers are
“beginning to window shop” for roles
at rival companies, the report said. The
result excludes any impact from the
impending bankruptcy of MF Global.
Although Morgan McKinley found a
very slight (0.4 per cent) rise in vacan-
cies last month compared to
September, both surveys showed a
huge fall in available jobs compared to
the same time last year.
In October 2010 nearly 5,000 new
jobs were recorded by Morgan
McKinley, down to 3,859 last month.
BY JULIAN HARRIS
EMPLOYMENT

George Papandreou agreed to resign to make way for a coalition of national unity Picture: GETTY
THE unfurling Greek tragedy claimed
its biggest scalp yet last night as
Prime Minister George Papandreou
finally agreed to stand down.
A new government of national
unity will now be formed, with
Papandreou yielding control when
the deal is finalised.
The decision followed crisis talks
last night with conservative opposi-
tion leader Antonis Samaras and
President Karolos Papoulias.
The new government faces the
unenviable task of approving the
country’s €130bn (£112bn) bailout
package, with the eyes of the world
upon it and the future of the
Eurozone hanging in the balance.
Papandreou and his opponents
were desperate to hammer out a deal
ahead of a meeting by Eurozone
finance ministers today, in a bid to
show that Greece is serious about tak-
ing the steps needed to stave off bank-
ruptcy.
The latest €8bn tranche of its
bailout package was due this month
but the EU and IMF said it would not
receive it until they were convinced
Greece could stick to its austerity pro-
gramme.
The Greek government was in tur-
moil last week after Papandreou pro-
posed a referendum on the bailout,
only for it to be withdrawn hours
GREEK PM AGREES
TO FALL ON SWORD
BY STEVE DINNEEN
EUROZONE CRISIS

www.cityam.com FREE
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later. He survived a vote of no confi-
dence on Saturday before the talks
that led to his resignation.
Former vice-president of the
European Central Bank Loukas
Papademos, former minister Petros
Molyviatos and finance minister
Evangelos Venizelos are seen as front
runners for the leadership.
After the bailout deal is decided an
election will be held, although no
time-frame has been given on how
long the interim government could
last. An increasing groundswell in
Greece, led by sections of the media,
is calling on the coalition to abandon
the euro altogether and return to the
drachma. Even France and Germany,
the Eurozone’s biggest cheerleaders,
have acknowledged that a Greek exit
from the single currency is no longer
inconceivable.
Meanwhile IMF head Christine
Lagarde arrived in Russia last night in
a bid to persuade Moscow to chip in
to the Eurozone bailout fund.
Moscow has said it is willing to talk
bilaterally with affected countries but
has been very careful in pledging
cash to the Eurozone as a whole.
Russia has so far pledged $10bn
(£6.24bn) to be used by the IMF – a
fraction of the €1 trillion that
Europe’s leaders have earmarked for
the European Financial Stability
Facility (EFSF).
Lagarde will then fly on to China
and Japan for further talks on the cri-
sis. ALLISTER HEATH: P2
Certified Distribution
29/08/11 till 02/10/11 is 98,447
Issue 1,505 Monday 7 November 2011
News
2 CITYA.M. 7 NOVEMBER 2011
BP’s £4bn Pan Am deal fails
BP’S long-awaited deal to sell a majori-
ty stake in Argentina’s second-largest
oil producer Pan American Energy for
$7bn (£4bn) collapsed in acrimony yes-
terday after the buyer walked away.
Bridas, the oil and gas firm owned
by Cnooc of China and Argentina’s
Bulgheroni family, said BP was to
blame for the collapse of the deal
because it had failed to resolve various
legal issues.
BP confirmed yesterday that it had
received “a notice of termination”,
adding that the closing of the transac-
tion had been delayed because it had
not secured certain regulatory
approvals.
“Under the terms of the agreement,
Bridas Corporation had exclusive
responsibility for obtaining these
approvals,” BP added in a statement.
The oil major first struck a deal to
sell 60 per cent of Pan American in
November last year, in a move
designed to help raise funds to pay for
the cleanup of its Gulf of Mexico oil
spill.
Suggestions that the deal was on the
brink of collapse have been circulating
for weeks as the parties neared the 1
November deadline when the transac-
tion was due to be completed.
Bob Dudley initially said at the
group’s third quarter results last
month that it was waiting on regulato-
ry approval and “fully expected the 1
November deadline to be extended”.
The failure of the sale will put pres-
sure on Dudley, who last month
announced plans to increase the size
of its disposal programme to a total of
$45bn (£28bn). The group has so far
raised about $26bn in asset sales.
The group also said it aimed to dou-
ble cashflow by 2014, restart a pro-
gramme of share buybacks and from
next year begin to pay investors higher
dividends.
Nevertheless Dudley insisted at the
time that Pan American deal was not
as important to the firm’s cashflow
today as it was a year ago, when oil
prices were low.
BP said yesterday it does not plan to
divest additional assets to offset pro-
BY KASMIRA JEFFORD
OIL & GAS

Time to think about euro’s break-up
IT is finally all over for George
Papandreou, the Greek prime minis-
ter. Barring yet another u-turn, he will
step down and a so-called national
unity government will be created with
the help of opposition leader Antonis
Samaras. It’s not as if the two men are
strangers: astonishingly, they were
roommates at Amherst College in the
US in the 1970s. If you thought
Britain’s political elite is insufficiently
diverse, wait until you meet Greece’s.
Now that democracy has been sus-
pended – it no longer matters which
party won or lost the last election –
the Eurozone will be happier to waive
its chequebook. There will be smiles
all around and even claims that the
euro and Greece’s membership have
been saved; hopes will be expressed
that Italy’s ridiculous Silvio Berlusconi
will be the next leader to be thrown
out. It is all so pathetically predictable.
Yet even if Greece’s new coalition
actually materialises and doesn’t col-
lapse immediately, and even if it
pledges to implement all the agreed
measures, that doesn’t mean that the
deficit will shrink as planned. And
even if it does, that won’t be enough
to save Greece: the original deal was
flawed, with the Athens government
still set to be saddled with debts of 120
per cent of GDP by 2020.
Italy’s woes are different. The coun-
try is richer; even though it is facing a
liquidity crisis, it is not insolvent. Its
problem is longer-term, one of com-
petitiveness: Italy’s GDP growth has
been negligible for years. Eventually,
that will trigger either a painful read-
justment or a crisis in the public
finances. The rising yields on Greek
debt are partly due to the markets
assigning an increasing probability of
a euro exit caused by the fallout from
this longer-term, slow burning com-
petitiveness and demographic crisis.
So what would happen were the
Eurozone to break up? The Ernst &
Young Item Club thinks it will be very
painful; the CEBR is more relaxed.
There are 15-20 per cent more euros
than dollars in global circulation,
though when it comes to metrics such
as global reserves and use as a unit of
account (for trade invoicing and com-
modities) the greenback remains
dominant. But the euro has major sig-
nificance for firms, transactions, cen-
tral banks, pension funds, insurance
companies and governments.
Yet nobody has worked out a prop-
er, orderly break-up plan – just as
nobody bothered to work out how
large universal banks could be dis-
mantled if they failed. Foolishly, it was
assumed that the euro’s demise was
either impossible or too grim to even
contemplate. There was no Plan B.
The City was wrong to endorse and
campaign for the launch of the euro
in the late 1990s. In doing so it aligned
itself with the Foreign Office and
much of the UK establishment. This
was partly because many firms gen-
uinely believed the euro would boost
growth – and partly out of self-inter-
est. One economist once told me how
he was sacked from a big institution
for being sceptical. European govern-
ments also bullied banks, warning
that they would only deal with sup-
portive institutions.
But having got it wrong last time
around, the City should now help
devise solutions for an orderly break-
up. There is an incentive for smaller
players too: Lord Wolfson, Next’s
enlightened boss, has kindly put up a
£250,000 prize for whoever comes up
with the best solution for how to
organise an orderly break-up.
Thinking caps on, please.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
NEWS | IN BRIEF
Theresa May faces border row
Home secretary Theresa May will today
give an emergency statement on the UK
Border Agency, following claims it had
secretly relaxed checks on passport con-
trol. Brodie Clark, head of the border
force has been suspended over the alle-
gations. Investigations are also being
held into whether port operators, includ-
ing BAA which runs most of the UK’s
major airports, were involved in the
decision because they wanted to avoid
queues.
France speeds up older retirement
A new wave of 2012 budget saving
measures designed to help France meet
its deficit reduction targets will include
speeding up its higher retirement age.
Last week, France lowered its growth
projections for next year to one per cent
from 1.7 per cent – raising the need for
further belt-tightening measures by the
centre-right government of President
Nicolas Sarkozy. That saving plan, to be
announced today, will include accelerat-
ing the transition to the retirement age
of 62 from 60 in either 2016 or 2017,
instead of 2018, Les Echos newspaper
reported on its website yesterday.
EDITOR’S 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 Editor’s
Code of Practice, a copy of which can be found at
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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
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ANALYSIS l BP PLC
p
31 Oct 1 Nov 2Nov 3Nov 4Nov
470
465
460
455
450
445
440
452.55
4 Nov
ceeds that would have been received
from the PAE transaction
The cancellation of the deal means
BP will now have to repay Bridas’
$3.53bn deposit received for the PAE
stake at the end of 2010, which will
not impact its level of gearing.
BP said it “will now be considering
all its strategic options regarding
PAE,” while Bridas said it would be
willing to continue negotiations
despite the deal’s termination.
BP, led by boss Bob Dudley said it will now look at all of it options for PAE Picture: REUTERS
GREEK BANKS ISSUE €6.4BN IN BONDS
Three of Greece’s biggest banks have
issued €6.4bn of government-guaran-
teed bonds likely to be used as securi-
ty to obtain financing from central
banks, a move that points to worsen-
ing market conditions amid talk of a
disorderly Greek default. Alpha Bank,
EFG and Piraeus on Friday issued the
floating-rate notes, which analysts say
will probably be used as part of a new
€30bn liquidity facility created for
cash-strapped Greek banks earlier
this year.
MAN GROUP IN CHINA PUSH
Man Group, the world’s second
largest hedge fund manager, is posi-
tioning itself for an expansion into
mainland China as part of a drive
beyond its base in Europe and the
Middle East. The FTSE 100 listed
group, which has suffered over the
past quarter from a painful fall in
assets under management, due in
large part to the Eurozone crisis, has
hired Yifei Li, one of China’s leading
businesswomen, as its “China chair”
to oversee the push.
SHOPS OFFERED £1 RENTS ON HARD-UP
STREETS
Pound shops, selling cheap house-
hold goods and plastic toys, have
become a familiar sight on high
streets as the downturn has bitten.
But the term takes on another mean-
ing with reports of knock-down rents
of just £1-a-year on hard-to-let shops.
ANGER OVER GOLDMAN INTEREST ON
TAX BILL
The row over a tax deal struck
between Revenue & Customs and
Goldman Sachs took a fresh twist
after the FT confirmed suspicions
that the UK tax authority had not
pursued the investment bank for pay-
ment of £10m in interest relating to a
long-running legal dispute over
bonuses.
FIGHT LOOMS FOR SLICE OF THE CLEAN
COAL PIE
A £1bn government fund to subsidise
Britain’s first clean coal power plant
is likely to be carved up between
developers after ScottishPower with-
drew from the project. The energy
group said that the subsidy offered by
the Government was not enough.
Even so, under plans outlined to The
Times by the Energy Minister Charles
Hendry, developers will have to fight
to share the same pot of money and
so make do with less than half the
original up-front sum.
ROYAL MAIL TO SPEND ‘EXTRA £15M’
GETTING CHRISTMAS SORTED
The Royal Mail is to plough an extra
£15m into its Christmas operation to
ensure that it delivers Britain’s two
billion items of seasonal post on time.
The postal service will invest the addi-
tional funds in nine “packet hubs”.
BRITISH BANKS FACING CLAIMS RISK
IN SAUDI FRAUD CASE
HSBC and Standard Chartered could
be dragged into a multi-billion dollar
dispute between warring Saudi fac-
tions after the banks were forced to
hand over thousands of potentially
incriminating documents. A court in
New York ordered the two British
banks together with Citi and Bank of
America to disclose confidential
client documents, over-ruling plead-
ings that the evidence could be used
against them. The documents relate
to bank accounts held by Maan Al-
Sanea, the Saudi billionaire.
GLAXOSMITHKLINE SCIENTIST FACE
THEIR OWN DRAGONS DEN
GlaxoSmithKline is set to decide
which of its scientists receive money
to support research projects by hold-
ing a “Dragon’s Den”-style review to
find the most promising assets.
CITIGROUP TRIES TO CALM A
JAPANESE WATCHDOG
Citigroup is moving to try to quell
anger among regulators in Japan who
are growing increasingly impatient at
what they see as the bank’s inability
to fix regulatory problems that have
led to three scandals in seven years.
The New York company has hired a
recruiting firm to find a slate of new
senior executives for Citigroup’s oper-
ations in Japan, possibly including its
top executive, according to people
familiar with the situation.
YEN LIKELY TO DENT TOYOTA RESULTS
Toyota is set to report lacklustre
results for the July-September quarter
tomorrow, battered by the yen’s surge
to record highs against the dollar and
lost production in the aftermath of a
massive March earthquake. Analysts
are keen to see if that prompts Toyota
to reduce its earnings forecast.
WHAT THE OTHER PAPERS SAY THIS MORNING
Focus | Euro crisis
3 CITYA.M. 7 NOVEMBER 2011
GERMAN travel operator TUI Travel
has already written to Greek hotel
proprietors, asking them to
explain how they would plan to
honour payment obligations if
Greece were to leave the Euro.
TUI confirmed reports in
German newspaper Das Bild that it
was renegotiating contracts to pro-
tect it from a switch back to the
drachma, whose value would likely
drop sharply if it replaced the sin-
gle currency.
A spokesman for TUI said the
prospect of Greece returning to the
drachma was “more than theoreti-
cal”.
The tour operator also said it was
putting the interests of holiday-
makers first in protecting itself
against currency fluctuations.
The president of the Greek
Tourism Association said hoteliers
should not feel pressured into sign-
ing new contracts, which would
allow TUI to pay them in “the new
currency” as well as ensuring ongo-
ing payments are received.
In its most recent quarterly
results at the end of August, TUI
Travel said the volume of its cus-
tomers visiting Greece was up 11
per cent.
TUI renegotiates contracts in drachma
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BRITAIN could hand a staggering
£40bn of taxpayers’ cash to the IMF
without getting backing from
Parliament, Danny Alexander, the
chief secretary to the Treasury,
revealed yesterday.
That means the coalition would be
able to help bail out countries such as
Greece by increasing its IMF contribu-
tions without fear of being defeated
in the Commons by an alliance of
Eurosceptic Tory backbenchers and
Labour MPs.
Alexander said: “We have two sorts
of money that we give to the IMF.
There’s a £20bn ceiling for each, so
there’s a maximum of £40bn that we
can make available to the IMF.
“Currently only about £5bn of that
is actually in use, so we have the
capacity to go up to that £40bn ceil-
ing without a vote in Parliament.”
Labour, which has said IMF
resources should not be used to bail
out countries that have structural
problems, hit out at Alexander.
Chris Leslie, Labour’s shadow
Treasury minister, said: “Extra
resources for the IMF must be subject
to the normal parliamentary scruti-
ny, in order to ensure we safeguard
the best interests of British taxpay-
ers.”
UK may give £40bn to IMF
BY DAVID CROW
POLITICS

THE cost of a break-up of the
Eurozone could cost the UK far less
than has been feared, according to
new research by the Centre for
Economics and Business Research
(CEBR).
It estimates that an immediate exit
by Greece would cause the Eurozone
economy as a whole to contract by an
additional two per cent, taking it to a
two per cent contraction next year.
The CEBR estimates this would lead
to a hit on UK exports of around 1.5
per cent, reducing total UK GDP by
half a per cent. If this were to happen
in the short-term it would cause the
UK’s growth to grind to a standstill
and a downturn in business invest-
ment would push the UK back into
recession.
The UK has relatively little expo-
sure to Greek sovereign debt, at just
£2.1bn, compared to Germany’s
£14.1bn, although it holds significant-
ly more Italian and Portuguese debt.
However, the CEBR says the initial
pain could give way to greater stabili-
ty in the medium and long-term. It
says preserving the Eurozone will
lead to ten years of austerity whereas
the UK would be on at least a level
playing field after five years in the
event of a break-up.
A spokesman said: “Our central
expectation is that the Eurozone will
not break up in the immediate future
because, having seen some of the
potential consequences, Greeks and
others will not dare to be tarred with
the responsibility of causing what, in
the short term, will be considerable
economic pain.”
However, he added: “It seems
unlikely it will survive very long
because of the political unpopularity
of taking austerity measures seeming-
ly to please foreign leaders and rescue
foreign bankers.”
Euro split
may cost less
than feared
THE European Central Bank (ECB) has
discussed the possibility of ending the
purchase of Italian government bonds
if it concludes Italy is not adopting
promised reforms, ECB governing
council member Yves Mersch has said.
“If we observe that our interventions
are undermined by a lack of efforts by
national governments then we have to
pose ourselves the problem of the
incentive effect,” Mersch said, accord-
ing to extracts of an interview with
Italian daily La Stampa published over
the weekend. Asked if this meant the
ECB would stop buying Italy’s bonds if
it did not adopt reforms it has prom-
ised to the EU, Mersch, who heads
Luxembourg’s central bank, replied:
“If the ECB board reaches the conclu-
sion that the conditions that led it to
take a decision no longer exist, it is
free to change that decision at any
moment. We discuss this all the time.”
Since the ECB resumed its bond buy-
ing programme around three months
ago it has purchased some €100bn
(£86bn) of government bonds.
ECB could
stop buying
Italy’s bonds
THE Swiss National Bank is ready to
take further measures to weaken the
Swiss franc if the economic outlook
and deflationary development make it
necessary, its chairman said yesterday
in a newspaper interview.
“The franc is still highly valued ver-
sus the euro at the current exchange
rate. We expect it to weaken further
over time,” Philipp Hildebrand was
quoted as saying by Swiss Sunday
newspaper NZZ am Sonntag.
“If that was not the case, it could
lead to deflationary trends and weigh
strongly on the economy. If the eco-
nomic outlook and the deflationary
development make it necessary, we are
ready to take further measures.”
SNB board member Jean-Pierre
Danthine also insisted on the bank’s
readiness to take action in a speech
earlier last week.
SNB ready to weaken franc
EUROZONE

Danny Alexander said the coalition did not need parliamentary approval Pic: REUTERS
BY HARRY BANKS
EUROZONE

BY ELIZABETH FOURNIER
EUROZONE

BY STEVE DINNEEN
EUROZONE CRISIS

Italian Prime Minister Silvio Berlusconi has
said Italy will adopt key reforms by the end
of the month. Picture: REUTERS
CARPHONE Warehouse (CPW) is set to
announce a major overhaul of its tie-
up with Best Buy, including shutter-
ing a string of UK stores and selling
its stake in its US joint venture for
almost $1bn (£620m).
The British firm will finally pull
the plug on 11 super-sized “Big Box”
electrical retailers when it posts its
first half results. It is not yet known if
any outlets will be bought by rivals.
The loss-making stores – once seen
as the lynch-pin of Best Buy’s
European expansion – have been
under review since the summer, with
consumer demand for expensive elec-
tricals at rock bottom. Best Buy had
originally hoped to roll out up to 200
of the stores across Europe by 2013.
But the decision to sell its stake in
the blisteringly successful US mobile
phone business has come out of the
blue. If the deal – which was first
reported by Sky News’ Mark
Kleinman – goes through, it could
spell a bumper pay-day for CPW
investors, with the funds likely to be
returned as a special dividend.
Best Buy will maintain its stake in
CPW’s UK high street business and it
is understood the two may explore
rolling out the successful mobile
retailer formula into fast growing
markets including China and India.
CPW may bring its results forward
from tomorrow to this morning to
coincide with the announcement. It
is expected to post a further loss on
the Big Box venture of around £35m.
SEE RETAIL NEWS P16 AND 17
Carphone will
sell its stake
in US venture
TWO major US futures exchanges have
cut the initial margin that speculators
must hold against futures trades, to
avoid market instability as traders
scramble to cover positions transferred
out of the bankrupt broker MF Global.
Exchange owner CME Group said it
would set its initial margin upcharge
at zero, lowering the risk of wide-
spread margin calls after a US bank-
ruptcy court ruled that as customer
positions were moved out of MF
Global, 40 per cent of their margin
would remain at the clearing house.
If margin requirements were main-
tained, many customers would have
been forced to post large deposits to
cover the shortfall, sparking fears that
a domino effect would roll through
the markets as traders were forced into
liquidating positions.
IntercontinentalExchange also said
it was lowering its initial margin rate,
matching it to the maintenance rate
common across its contracts.
ICE said the action was being taken
to “mute the impact of the transfer of
accounts from MF Global Inc. to other
clearing members”. CME Group said:
“the intent and effect of these changes
is to decrease the size of any margin
calls resulting from the bulk transfer
of MF Global customers to new clear-
ing members”.
Exchanges cut
margins to stop
MF Global calls
BY STEVE DINNEEN
TELECOMS

FINANCIAL SERVICES

News
4 CITYA.M. 7 NOVEMBER 2011
TIME LINE | CARPHONE’S BEST BUY TIE-UP
May 2008
Best Buy and Carphone Warehouse
announce a joint venture, Best Buy Europe,
tasked with rolling out Best Buy stores
throughout Europe.
November 2008
Amid the turmoil of the financial crisis after
Lehman Brothers collapses, Best Buy issues
a profits warning.
March 2009
The company says it will delay opening its
first UK stores to early 2010, having original-
ly planned to launch in the summer of 2009.
April 2010
The first Best Buy ‘Big Box’ store in the UK
finally opens at the West Thurrock Retail
Park in Essex.
February 2011
Best Buy chief executive Scott Wheway
announces he is stepping down from his
position.
June 2011
The company announces a freeze on the
opening of new stores after reporting a loss
of £62m for the year on the six stores so far
opened.
November 2011
Carphone Warehouse is expected to
announce the closure of the 11 Big Box
stores as the economic turmoil continues to
hit the consumer electronics market. It is
also set to sell its stake in its US joint venture
mobile retailer business, which has proved a
blistering success since its launch. Cash from
the deal is likely to be returned to investors.
Carphone founder Charles Dunstone is thought to have agreed a US sale
ANALYSIS l Carphone Warehouse Group PLC
p
31 Oct 1 Nov 2Nov 3Nov 4Nov
355
350
345
340
335
330
345.00
4 Nov
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Visit tfl.gov.uk/lezlondon
POLITICIANS adore pomp and cere-
mony, yet last week’s sight of grin-
ning world leaders lining up for their
grand group photograph in Cannes
seemed somewhat inappropriate.
While the glamorous French sea-
side town may be used to film stars
coveting the limelight, on this occa-
sion one may have expected a little
more humility and even embarrass-
ment from the protagonists of the
Eurozone saga.
Credulous investors piled back into
risk assets when Eurozone leaders
finally announced some parts of a res-
cue package at the end of last month,
having pushed back their deadline to
4am.
However, the failure of the G20 to
achieve anything of substance – com-
bined with ongoing political farce in
Greece – has come as a timely
reminder that the metaphorical can
continues to be kicked down the
road. With Italy’s economy looking in
a more perilous state every day, a con-
vincing solution to the debt crisis
remains elusive.
“At the G20 finance ministers’
meeting on 15 October, the Eurozone
governments were tasked with com-
ing up with a credible plan to stop the
rot in time for the week’s Cannes
summit,” reminded Andrew
Kenningham of Capital Economics in
a note. “They failed to meet this dead-
line in spectacular fashion.”
Any hopes that the wider world
would come to the rescue – including
parts that actually have decent eco-
nomic growth – were dashed, with no
commitments made. Instead, we
were left with sadly predictable diplo-
matic spin: “We stand ready to ensure
additional resources could be
mobilised in a timely manner,” the
G20 assured.
A classic schoolboy trick followed –
a solemn pledge to meet (yet another)
deadline, as finance ministers were
urged to work on “a range of various
options” in time for the group’s
February meeting.
There was some solid progress,
however, with the Italian representa-
tives agreeing to a “Staff Monitored
Programme” from the IMF – essential-
ly allowing external evaluation of the
country’s efforts to get its finances
under control, even without the sup-
posed benefit of a bulked up IMF
loan. The additional pressure, ana-
lysts hope, may finally see reforms
being passed in Rome.
Italian job a
rare piece of
G20 progress
Focus | G20 in Cannes
6 CITYA.M. 7 NOVEMBER 2011
World leaders kick the Cannes down the road
D
IPLOMATS are useful only in fair
weather. As soon as it rains they
drown in every drop”. So said
France’s most famous post-war
leader Charles de Gaulle. So in my
analysis of the G20 in Cannes, let me
start by telling you the heavens were
fully open from start to finish. Cannes
was wetter than Borrowdale.
If the markets were looking for
something from the official agenda to
scare them then they may have
focused on French ambitions regard-
ing transaction taxes, capital controls
and foreign exchange reform. If the
same markets were looking for some-
thing to cheer them up then they
might have sought some firm commit-
ments on debt and more specifically
debt reduction.
The truth is, those looking for firm
action in the final G20 Communique
would have had a hard time finding
much to get their teeth into. Lots of
promises and fine words.
Unsubstantiated commitments to
growth and jobs and to rebalancing
economies. The leaders all grinned
their way through the post-match
pressers.
The falsest smile was on the face of
Silvio Berlusconi though, because slap
bang in the first few paragraphs of the
Communique was a statement putting
Italy on the naughty step. Yes, Italy was
basically told “we don’t trust you to
come up with what you’ve promised” .
You will now show your books to the
IMF and European Commission to
prove you are delivering on your prom-
ises.
So well done Berlusconi, you alone
managed to take the headlines at this
meeting away from that pesky upstart
Greece. That takes some doing and I
wish you well in your umpteenth con-
fidence vote this coming week.
To those who accuse our British
leaders of being peripheral figures in
Cannes, I ask only one question: “Are
you seriously saying you wanted them
near the centre of this non-event?” If I
were Messrs Cameron and Osborne I’d
be chuffed to bits. Think about it – no
British money promised for the EFSF,
no transaction tax looming and no
focus on our own shaky economic per-
formance. Turn up, smile, talk the
talk, smile again and get home as
quickly as possible.
It would be too mean to say that
some progress wasn’t made on all
fronts. Madame Lagarde will get more
firepower for her IMF at some stage
and that is a good thing. Elsewhere,
systemically important banks will get
more scrutiny, again surely few would
disagree with that.
So as we look forward to another
week of debt crises in Europe,
Monsieur Sarkozy has handed the
baton of G20 presidency over to
Mexico. What mark would we give the
French performance this past year?
Why, in the best traditions of the
Eurovision Song Contest it has to be
“Nil Points”.
Steve Sedgwick is an anchor at CNBC
CNBC COMMENT
STEVE SEDGWICK
Politicians like deadlines, especially the
whooshing sound they make as they fly
by. Aside from a nudge at Italy, Cannes
was a waste of time, says Julian Harris
● European leaders hoped that governments
from emerging economies might contribute to a
new special investment vehicle (SPIV) through
which Eurozone authorities could ease pressure
in the bond markets of troubled member states.
However, while such a deal remains on the
table, no agreement was reached.
● Finance ministers have been tasked with
looking at more conventional methods – “includ-
ing bilateral contributions to the IMF, SDRs, and
voluntary contributions to an IMF special struc-
ture such as an administered account.”
● A proposal for the IMF to issue Special
Drawing Rights (SDRs) was reportedly knocked
back by German chancellor Angela Merkel. If
agreed to, the SDRs could be used by one mem-
ber state to lend to others, as well as increase
the reserves of a country, thereby providing
more financial stability.
● Yet shadow chancellor Ed Balls hit out at the
promotion of the IMF as a solution: “The IMF’s
job is not de facto to become the central bank of
Europe”, he said. “The IMF resources should not
bail out Spain and Italy, that’s the ECB’s job.”
FAST FACTS | WHAT COULD THE G20 DO TO HELP?
LLOYDS is expected to announce that
it lost over £2bn to bad loans in a close-
ly watched quarterly results presenta-
tion tomorrow, with investors keen to
judge how it will manage its credit risk
without the leadership of António
Horta-Osório, who departed on sick
leave last week.
Horta-Osório had accelerated the
shrinkage of the group’s balance sheet
in a drastic attempt to scale down its
reliance on wholesale funding, but
analysts expect the process to have
slowed recently due to tough sale con-
ditions in Europe.
A note by Société Générale analysts
predicts that the speed with which it is
selling non-core assets will have halved
from offloading £8bn in the second
quarter to £4bn in the third.
“Faster run-off would be positive for
the shares given that these assets are
responsible for the majority of Lloyds’
credit risk,” they wrote.
Markets are also sceptical about its
net interest margin target, which
remains at 2.15-2.3 per cent despite a
rise in funding costs recently. The
bank is thought to be mulling new
guidance on the target tomorrow.
Lloyds is also understood to have
begun contingency planning in case
Horta-Osório does not return from
leave in eight weeks. The bank had
some rare good news on Friday, howev-
er, when the Co-operative Group con-
firmed it will bid on the 632 branches
Lloyds is selling.
All eyes on
Lloyds’ bulky
balance sheet
BY JULIET SAMUEL
BANKING

TOKYO Stock Exchange (TSE) and
Osaka Securities Exchange (OSE) are
in the final stages of talks to merge,
with the aim of combining forces in
the autumn of 2012.
Under one likely scenario being dis-
cussed, the unlisted Tokyo bourse
would first take a majority stake in
the smaller but listed Osaka exchange
as early as next spring through a pub-
lic tender offer, the Nikkei said.
The two would then merge opera-
tions and the OSE would remain list-
ed as the surviving entity.
Merger talks between the
exchanges began in March with the
aim of better competing amid weak
stock market conditions in Japan and
a wave of mergers and alliances
among global exchanges.
The two have complementary
strengths, with the Tokyo bourse con-
trolling more than 90 per cent of
cash-equity trading volume in Japan
and the Osaka exchange the top play-
er in Nikkei index futures and other
derivatives.
The head of the Tokyo exchange,
Atsushi Saito, who originally said he
wanted to list it before a merger, said
last month that avoiding an initial
public offering might speed up the
process.
Japanese exchanges set for
merger by autumn next year
BY HARRY BANKS
MARKETS

News
8 CITYA.M. 7 NOVEMBER 2011
Lloyds chief António Horta-Osório is on leave due to extreme exhaustion Picture: REX
Successor’s challenge will be to keep
up the speed of non-core shrinkage
W
HEN Lloyds chief António
Horta-Osório retreated on
to eight weeks’ sick leave
last week (perhaps never to
return), analysts were quick to point
the finger at the bank’s 144 per cent
loan-to-deposit (LTD) ratio as the like-
liest source of stress.
With European interbank mar-
kets largely closed for anything but
covered bonds, some suspect the
bank has had trouble placing the
£15bn in debt it had planned to issue
in the second half of this year.
Horta-Osório promised to bring its
LTD funding ratio down to 130 per
cent, but given that Europe is awash
with non-core assets being flogged
by desperate lenders, the question is
whether his successor (temporary or
otherwise) can keep up the same
momentum.
BOTTOMLINE
Analysis by Juliet Samuel
ANALYSIS l Lloyds Banking Group PLC
p
31 Oct 1 Nov 2Nov 3Nov 4Nov
38
36
34
32
30
28.57
4 Nov
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DAVID Cameron is planning to preach
the importance of “moral markets”
due to fears that Labour’s attacks on
big business are playing well with vot-
ers.
Although the Prime Minister will
pour scorn on what he sees as Ed
Miliband’s crude distinction between
“good” and “bad” companies, he will
maintain the Tories are committed to
the so-called “good business” agenda.
The phrase “moral markets” was
almost made famous by David
Miliband, who planned to coin the
term in a speech to the Labour party if
he won the leadership election.
Cameron will draw attention to
coalition policies designed to help
small firms but not large ones – such
as a moratorium on new regulation
for businesses with ten or fewer MPs.
He will also point out he has taken
a high profile role in efforts to boost
the number of women in board-
rooms, a project that was started by
Lord Mervyn Davies while he was a
minister in the previous Labour gov-
ernment.
Cameron’s decision to fight Labour
on the “good business” agenda means
all major political parties – along with
the Church of England – are now tak-
ing a moralising approach to capital-
ism.
THE protesters campaigning outside
St Paul’s cathedral reflect the con-
cerns of millions of people and it
would be “reckless” to ignore or dis-
miss them, Labour leader Ed Miliband
said yesterday.
The comments, which were made
in a Sunday newspaper article, consti-
tute the strongest signal of support
for the protesters from a mainstream
politician since they erected their
camp outside St
Paul’s on 15 October.
“They reflect a crisis
of concern for millions
of people about the
biggest issue of our time:
the gap between their
values and the way our
country is run,”
Miliband wrote in the
Observer.
“The warning lights on the
dashboard are flashing. And
only the most reckless will
ignore or, still worse, dismiss
the danger signals.”
He added: “The problem
is a system of irresponsible, predatory
capitalism based on the short-term,
rather than productive, responsible
behaviour which benefits business
and most people in the long term.”
Miliband cited soaring energy bills
and a survey showing a 49 per cent
increase in the pay of FTSE 100 execu-
tives as two examples of what he
called a “fast buck” society.
Yesterday, Labour’s shadow foreign
secretary Douglas Alexander
defended the party’s position
on the St Paul’s camp and
said the protesters were
speaking “to a much deeper
unease in society about the
rules by which society is
being run”.
David Cameron,
the Prime Minister,
has been more cau-
tious in his
response to the
protests, saying the
freedom to demon-
strate should not
allow someone to
pitch a tent any-
where in London.
THE FORUM: P29
Protests must
be heard, says
Labour party
David Cameron to preach moral
markets and responsible business
BY DAVID CROW
POLITICS

POLITICS

INDIVIDUALS and politicians made a
“moral mistake” by borrowing too
much during the boom years, David
Willetts, the universities minister,
said yesterday.
Willetts told Sky News the “values
of our economy” had “gone wrong”
under Labour, because there “was too
much borrowing and not enough sav-
ing”.
He said: “We were living beyond
our means on borrowed money.
Government was borrowing the
money, individuals were borrowing
the money and that was not just an
economic mistake, it was a moral
mistake as well.”
He added: “There was too much
trading and not enough manufactur-
ing. There was too much importing of
goods and not enough focusing on
the services and goods we could sell
abroad.”
Willetts said he hoped the elec-
torate would understand the govern-
ment was attempting to rebalance
the economy to put it “back in touch
with people’s mainstream values”.
Last month, David Cameron pro-
voked the ire of retailers, after an
early draft of his conference speech
called on families to repay their cred-
it and store card bills.
Willetts: Over-borrowing in
the boom years was immoral
David Willetts said individuals were living beyond their means Picture: REUTERS
Politics
10 CITYA.M. 7 NOVEMBER 2011
BY DAVID CROW
POLITICS

News
11 CITYA.M. 7 NOVEMBER 2011
PROTESTS like the one outside St
Paul’s cathedral will become a regular
feature of life in the Square Mile,
according to the City A.M. /
PoliticsHome.com Voice of the City
Panel.
Eighty-two per cent of panellists
said they expected more protests of
this kind to take place over the next
few years, compared to just four per
cent who said they expected less.
Almost three quarters of panel-
lists (72 per cent), who have been
recruited to represent a cross-sec-
tion of people working in business
and finance in London, said the
current protesters should be
forced to move their camp, com-
pared to 21 per cent who said
they should not.
A similar amount (76 per
cent) said the protesters’
aims were unclear.
Meanwhile, the Church’s handling
of the protests came in for short
shrift from our panel, with a
majority (62 per cent) saying
they were unfavourable to its
reaction.
Panellists described the
church’s response as “dithering”,
“confused”, “foolish”, “naive”
and “impotent”.
City A.M. and PoliticsHome
interviewed 482 panellists
by email last week
PoliticsHome.com PoliticsHome.com
Apply to join today at www.cityam.com/panel
In association with PoliticsHome.com
BY DAVID CROW
POLITICS

In partnership with
City expects more St Paul’s-style
activism over the next few years
5
%
21
7
72
Do you expect more or less protests of
this kind in the City?
Should the protesters be forced to move?
Yes No Don’t know A lot more
A lot fewer
Slightly more
Slightly fewer
No change
Don’t know

5
%
46
12
3
2
1
36
G4S is to conduct a formal review of
the role played by its financial advis-
ers in the wake of the firm’s botched
attempt to buy Danish cleaning
group ISS.
The security services firm aban-
doned the unpopular £5.2bn merger
last week at the eleventh hour after
shareholders expressed concerns
about the takeover strategy and size
of a rights issue to fund the deal.
Investors including M&G, Artemis,
and Schroders were all set to vote
against the transaction if last
Wednesday’s vote had gone ahead.
The board of G4S will now look at
the role played by Deutsche Bank and
RBS Hoare Govett in the run-up to the
announcement of the deal, it is
understood.
The financial advisers last week
came under fire from investors frus-
trated at the way the transaction was
handled, as they feel they were given
too little time to consider the deal.
It has been said that the review is
likely to focus in part on the motives
of some institutional shareholders
who showed support following pre-
marketing meetings by offering to
sub-underwrite the deal, which was
taken as a nod of approval by advi-
sors.
G4S was unavailable for comment.
BRITAIN’S oldest private equity firm
3i is this week expected to announce
plans to double its dividend in an
attempt to appease investors con-
cerned over its falling stock price.
The firm, which backs companies
including the Early Learning Centre
and Hobbs, the fashion retailer,
announced in September that it
would reveal changes to the annual
dividend at the time of its half year
results this Thursday.
Analysts expect the interim divi-
dend to substantially increase, with
some predicting the annual payout
could rise to pre-2009 levels of 8p a
share compared with 3.6p paid last
year.
Chief executive Michael Queen has
come under fire from investors,
including Standard Life, Schroders,
and Scottish Widows, who have been
increasingly frustrated by the firm’s
share price performance.
Shares in the FTSE 100 company
have fallen 38p over the past year,
closing at 195.8p on Friday, giving 3i a
market value of £1.9bn.
“The shares are trading at quite a
discount to the net asset value just
now and we think a buy-back would
be better value than a dividend
increase,” one investor told City A.M.
Laxey Partners, an activist share-
holder with a one per cent stake in
3i, has been calling for the firm to sell
its 35 per cent holding in 3i infra-
structure, a fund which Laxey says
does not fit with the firm’s strategy.
“We were suggesting a distribution
in specie of their holding in the infra-
structure fund which would be much
bigger than just receiving a slightly
bigger dividend,” said Laxey’s co-
founder co-founder Colin Kingsnorth.
3i declined to comment.
3i expected
to announce
dividend rise
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G4S to conduct formal review
following failed £5.2bn ISS deal
BY KASMIRA JEFFORD
PRIVATE EQUITY

SUPPORT SERVICES

News
12 CITYA.M. 7 NOVEMBER 2011
ANALYSIS l 3i Group PLC
p
31 Oct 1 Nov 2Nov 3Nov 4Nov
215
210
205
200
195
195.80
4 Nov
BRIAN Corcoran, the chief operating
officer at Paddy Power, is poised to take
the reins at online betting exchange
Paddy Power.
Corcoran replaces David Yu following
a five-month search that also consid-
ered internal candidates including
chief financial officer Stephen Morana
and independent non-executive direc-
tor Ian Dyson.
Corcoran, a graduate of Trinity
College Dublin and Insead, has been at
Paddy Power for over a decade.
He joined the company in April 2001
and was tasked with developing the
company’s non-retail business.
Previously he worked at JP Morgan and
Bankers Trust, as well as with a number
of start-ups.
He was appointed to the board of
Paddy Power on 31 August 2004, rising
through the ranks from commercial
director to managing director of non-
retail and development.
Corcoran secured the role of chief
operating officer and became a mem-
ber of the firm’s risk committee in
August 2010.
He is responsible for the group’s
online businesses and its technology
and HR functions, as well as its
Australian operations.
At 39, his annual remuneration at
Paddy Power, including share options
and bonus, is estimated at about
€785,000 (£675,458).
There will be hurdles ahead when
Corcoran relocates to London to take up
the challenge at Betfair, where the
share price has slumped from 1,300p on
listing last October to 769.6p at the
close of Friday.
Shareholders have also witnessed the
departure of Robin Osmond, the head
of Betfair’s LMAX betting exchange,
while chairman Ed Wray has also
expressed his desire to step down.
But Corcoran was a favourite for the
Betfair chief executive role, and with
form helping turn Paddy Power into
one of Britain’s fastest-growing
betting brands, the odds
could be in his favour.
Paddy Power exec to take Betfair reins
BY HARRIET DENNYS
LEISURE

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VIRGIN Atlantic has lashed out at British
Airways owner International Airline
Group’s (IAG) bid to buy the loss-making
BMI from Germany’s Lufthansa, warn-
ing that it still faces competition con-
cerns before it can proceed.
Virgin responded to IAG’s announce-
ment on Friday that it had “reached an
agreement in principle” to buy BMI by
confirming it had also made a bid for
BMI and was still working with
Lufthansa on the next stage of the
process.
Chief executive Steve Ridgeway said
yesterday that its rival IAG still had “a
massive competition mountain to
climb”, stressing that the deal was far
from sealed.
BMI would be a significant coup for
IAG as it holds nine per cent of the covet-
ed take-off and landing slots at London
Heathrow, Europe’s busiest airport,
which is now operating at full capacity
after plans to build a third runway were
scrapped.
The deal – believed to be worth
£300m – would increase BA’s share of
Heathrow’s slots from 45 to 53 per cent.
Meanwhile Virgin, BA’s main rival on
long-haul transatlantic routes, only
holds three per cent of Heathrow slots.
Ridgeway warned that British
Airways’ hold of Heathrow airport was
“already too dominant” and that the
purchase of BMI “would be disastrous
for consumer choice and competition”.
“With government limiting growth
at London Heathrow, they cannot afford
to turn a blind eye to the deterioration
of competition that would result from a
BA purchase of BMI,” Ridgeway said in a
statement.
Virgin attacks
AIG’s BMI bid
Virgin’s founder Richard Branson says the IAG bid is bad for competition Picture: REUTERS
BY KASMIRA JEFFORD
TRANSPORT

News
14
ANALYSIS l Deutsche Lufthansa AG

31 Oct 1 Nov 2Nov 3Nov 4Nov
10.60
10.40
10.20
10.00
9.80
9.60
9.40
9.20
10.06
4 Nov
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THOUSANDS of Qantas passengers
left stranded during industrial action
will be offered free flights as compen-
sation, the airline announced yester-
day.
The offer so far only applies to resi-
dents of Australia, who will be given a
free return ticket within Australia
and New Zealand, redeemable within
two years.
The airline said it also intends to
compensate foreign passengers, and
will announce how at a later date.
“Throughout the long period of
industrial activity we have been
acutely aware of the impact on our
customers,” chief executive Alan Joyce
said.
“This ticket offer is one of a range
of initiatives we will be launching as
a way of saying sorry as we move for-
ward into this period of stability.”
The free economy tickets on offer
would cost the company up to A$20m
(£12.97m), roughly equal to the esti-
mated cost of each day of the dispute
last month.
Qantas has promised the offer will
come on top of refunds, and will
email eligible passengers this week.
All Qantas Flights were grounded
in the last weekend of October, with
flights resuming on the Monday.
Qantas gives away free
tickets as strike apology
Qantas said it would compensate foreign passengers at a later date Picture: GETTY
BY THOMAS MCMAHON
CAPITAL MARKETS

News
15 CITYA.M. 07 NOVEMBER 2011
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@
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ONLINE
www.cityam.com
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SELFRIDGES, the British chain of
high-end department stores, will this
week report a surge in profits thanks
to the resilience of the luxury goods
market.
The company, which is owned by
Canadian billionaire Galen Weston, is
expected to report a 19 per cent jump
in profits later this week, after sales
at is stories in London, Birmingham
and Manchester increased by 11 per
cent to £950m in the year to January.
Managing director Anne Pitcher
said the company had bucked the
downturn in consumer spending by
mixing cheap brands such as Primark
with the luxury labels for which it is
best known.
In recent weeks, the company has
added high-end concessions such as
Prada, Dior and Tom Ford to its
menswear offering while also intro-
ducing brands that appeal to the
value conscious consumer, such as
Cheap Monday and Primark.
The group’s success is also likely
down to its popularity with high net
worth tourists, who are flocking to
London to take advantage of the weak
pound and high levels of choice.
Despite a worsening consumer out-
look, which has seen middle-market
retailers such as Argos owner Home
Retail group fall upon hard times, the
luxury sector is still booming.
Last month, LVMH, the world’s
largest luxury goods company, posted
forecast-beating third-quarter sales
growth and said it was bullish for the
rest of 2011.
Selfridges also attributed its suc-
cess to its innovative window displays
and customer experience, with
Pritchard saying other retailers might
be faring better if they had more
“entertaining and inspiring” shops.
In 2003, the Selfridges chain was
acquired for £598m by Canada’s
Weston, a retailing expert who is the
owner of department store chains
such as Holt Renfrew and Brown
Thomas as well as major supermarket
chains in Canada.
Selfridges to
buck the high
street gloom
THE RETAIL sector began the final
quarter of the year with a demoralis-
ing 3.1 per cent drop in annualised
like-for-like sales, according to
accountancy group BDO.
An identical 3.1 per cent fall was
also recorded in like-for-like fashion
sales, compared to the same time
last year, as shoppers delayed winter
purchases partly due to the mild
October weather.
Slow spending remains under
pressure from “rock bottom” con-
sumer confidence, BDO said, as well
as the “rumbling crisis in the
Eurozone”.
Yet non-store sales, which include
internet purchases, are up 20.7 per
cent year-on-year, with the report cit-
ing companies such as Next that
have used the web to offset weak
high street demand.
“Despite the unremitting flow of
bleak news, the non-stores sales
show consumers’ underlying desire
to spend is still there,” said an
upbeat Don Williams, head of retail
and wholesale at BDO.
“Rather than slapping the ‘sale’
sign on everything, our best retailers
continue to plan a series of regular
discounts that will get people over
the threshold without eating into
margins too much.”
Shops have a
tough start to
fourth quarter
BY HARRY BANKS
RETAIL

RETAIL

Retail News
16 CITYA.M. 7 NOVEMBER 2011
Selfridges boss Anne Pitcher (inset) has seen profits jump Picture: REUTERS
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Retail News
17 CITYA.M. 7 NOVEMBER 2011
TOP TEN FTSE RETAIL STOCKS ON LOAN
Company % of shares out on loan
Dixons Retail 14.19
Carpetright 13.57
Home Retail Group 12.63
Ocado 10.09
Mothercare 9.71
Next 6.93
Kesa Electricals 6.52
Halfords 4.09
Marks & Spencer 4.07
WH Smith 3.71
in October Source: DataExplorers
HEDGE funds are betting on further
falls in the share prices of some of
Britain’s best-known retailers, accord-
ing to new data from Data Explorers.
Hedge funds and other investors
borrowed large amounts of retailers’
shares in October, allowing them to
sell the stock when the price declines
and pocket the difference.
From electricals seller Dixons
Retail to fashion chain Next, retailers
have 3.5 per cent of their shares out
on loan on average – twice as much as
the 1.77 per cent on the entire FTSE
all-share index.
“Despite the share price recovery in
October, short sellers remain scepti-
cal about retailers,” said Data
Explorers research director Will Duff
Gordon.
Mid-market groups battered by
falling consumer spending have fared
worst, with about nine to 14 per cent
of their shares out on loan.
But even the most high-profile are
not immune: M&S has more than
four per cent of its shares on loan
Dixons, which operates as Currys
and PC World, tops the list with 14.19
per cent of its shares on loan. Its stock
has lost 60 per cent of its value in the
past year as sales of electronics and
white goods have slumped.
Carpetright has 13.57 per cent of its
shares out on loan after five profit
warnings in a year.
Hedge funds betting on
further woe for retailers
Dixons chief John Browett Picture:REX
BY ALISON LOCK
CAPITAL MARKETS

NEWS | IN BRIEF
Julius Baer lifts bid for Sarasin
Swiss private bank Julius Baer has raised
its bid for unlisted Rabobank's stake in
Swiss bank Sarasin and is now making
an all cash offer, the SonntagsZeitung
reported yesterday. Baer had initially
offered to pay in cash and Julius Baer
shares for the stake in Sarasin, a bank
catering for rich clients. Swiss coopera-
tive lender Raiffeisen is also interested in
acquiring a stake in Sarasin.
Luminar has queue to buy clubs
Collapsed nightclub operator Luminar
has received a dozen expressions of inter-
est for parts of the group. Oakley Capital,
Sun European Partners, R Capital, Hugh
Osmond and Luminar founder Stephen
Thomas are said to be among those con-
sidering an offer. Last week the firm
closed 11 venues, with the loss of around
300 jobs. The remaining 65 clubs are still
trading.
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THE mystery investor considering a bid
for Irish food company Greencore is
understood to be private equity firm
Clayton Dubilier & Rice (CD&R), the
new employer of former Tesco chief
executive Sir Terry Leahy.
Greencore confirmed on 25 October
that an unidentified party had made
an approach that could lead to an
offer.
The company, which makes sand-
wiches for Tesco, is one of the super-
market giant’s biggest suppliers. It also
makes ready meals for Weight
Watchers, and Bisto gravy.
CD & R, which appointed Sir Terry as
a senior adviser in February, has expe-
rience in the sector after acquiring
ready-meal maker US Foods in 2007.
Any deal would cap a tumultuous
year for the Irish firm.
Poultry giant 2 Sisters Food Group
scuppered Greencore’s merger with
Northern Foods in March, by snapping
up the company for £342m.
The Irish company then diverted its
attention to British sandwich maker
Uniq, which it agreed to purchase for
£113m in July.
The Office of Fair Trading reported
that the tie-up would give the compa-
ny between 30 and 40 per cent of the
British sandwich market.
Rumours over the identity of this
month’s bidder had even touched on 2
Sisters, although analysts had also sug-
gested a management buyout.
Fierce competition in the prepared
food sector is seen to be driving consol-
idation.
Leahy outfit
considers bid
for Greencore
Sir Terry Leahy is an adviser to CD&R Picture: REUTERS
BY THOMAS MCMAHON
CONSUMER

News
18
ANALYSIS l Greencore Group

31 Oct 1 Nov 2Nov 3Nov 4Nov
0.78
0.76
0.74
0.72
0.74
4 Nov
FORMER friends Patrick Evershed and
John Duffield will this morning meet
in court to thrash out a bitter employ-
ment dispute.
Evershed claims he was unfairly dis-
missed from New Star after sending a
whistleblowing email alleging that
John Duffield, the founder of the firm,
was bullying staff to such an extent
that the performance of the compa-
ny’s funds was suffering.
Evershed, 70, is seeking £1.5m dam-
ages from Henderson Group, which
inherited the case when it bought New
Star in 2009. He is represented by
Daphne Romney QC of Cloisters, the
employment specialist who defended
Dennis Wise in his unfair dismissal
case against Leicester City FC.
The case hinges on whether
Evershed was unfairly dismissed, as he
claims, or whether he resigned, as
Duffield maintains. Duffield, 72, now
a senior partner at Brompton Asset
Management, has repeatedly denied
any claims of bullying.
Evershed joined New Star in 2002 to
manage the Select Opportunities
Fund, which had assets under manage-
ment of £200m at its peak.
He was “initially friends” with
Duffield, Evershed told City A.M., but
became concerned that Duffield’s
behaviour was “seriously demoralis-
ing” New Star’s fund managers. On 18
September 2008 he made a formal
complaint via email to New Star’s HR
department, alleging that Duffield
had been “vile to most of the fund
managers for several years”.
Evershed claims he was asked to
leave the building within 15 minutes
of sending the email by New Star’s
chief executive Howard Covington.
Subsequently, Evershed alleges, his
solicitors received a letter from New
Star saying he was suspended from
work until he had been seen by a psy-
chiatrist approved by the company.
“I am saying that sending that letter
constituted constructive dismissal,”
said Evershed. A verdict is expected by
the end of the month.
City grandees
start battle at
court tribunal
POLICE were last night investigat-
ing whether smoke from a local
firework display could have caused
the crash on the M5 motorway on
Friday night that left seven people
dead and injured more than 50.
Several eyewitnesses have report-
ed seeing fog or black smoke on
the stretch of road in Somerset
where the accident happened, and
police have said a bonfire and fire-
work display held at nearby
Taunton Rugby Club is a “major
line of inquiry”.
The crash, between junction 24
and 25 of the southbound lane of
the M5, involved 34 vehicles and
caused a huge fireball as fuel from
the cars and lorries was ignited.
The northbound side of the road
was reopened last night along with
two of the southbound lanes, with
only the outside southbound lane
remaining closed.
All the damaged vehicles have
now been removed from the scene
and the death toll is not expected
to rise, though local hospitals are
still treating many of those injured
in the crash.
The seven people who died as a
result of the pile-up have not yet
been formally identified.
Police probe
fireworks role
in M5 carnage
Patrick Evershed (top) today brings his case against John Duffield Pictures: REX
BY HARRIET DENNYS
FUND MANAGEMENT

News
19 CITYA.M. 7 NOVEMBER 2011
BY ELIZABETH FOURNIER
TRANSPORT

At my bank everyone
can get a bonus.
At the end of 2010, The Co-operative Group shared over £70.5m in profits
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payment. To qualify for a share of the profits payment members must have earned a minimum of £2 worth of membership points, within the qualifying period. Membership
terms and conditions apply. Products not eligible to earn points are affinity and partnership products, offshore, fixed rate and fixed term savings accounts and bonds. Lines
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P.O. Box 101, 1 Balloon Street, Manchester M60 4EP. Registered in England and Wales No. 990937. Britannia is a trading name used by The Co-operative Bank p.l.c.
The £300m redevelopment is part of the Crown Estate’s £1bn Quadrant scheme
News
20 CITYA.M. 7 NOVEMBER 2011
Samsung Olympic mentions by category
Industry
National News
Topicals
Blogs
Twitter
Video
Regional News
Discussion
Other
%
5.8%
12.4%
8.4%
18.8%
42.2%
2.6%
5.8%
4.9%
0.9%
Brought to you by
IN ASSOCIATION with
Repskan.com, the media monitoring
and analytics platform, City A.M. is
measuring the relative Olympic
media buzz around the partners for
the London 2012 Olympic and
Paralympic Games, week by week.
The leaderboard, right, reflects their
ranking over the past week, in this
case from Wednesday 26 October
to Wednesday
2 November.
Continued
interest in
Samsung and Visa’s mobile pay-
ments combined with fresh
announcements have helped to lift
interest in a story that had gained
some attention earlier in the year
regarding the announcement of the
launch of their exclusive and “icon-
ic” Olympic smartphone.
This has provided them with wide-
spread coverage, generally led from
technology blogs or topical sites,
but spreading to various regional
publications.
TOP TEN PARTNERS BY MENTIONS
Brand Position change
Visa 1
Samsung -1
BT 6
Coca-Cola 1
Adidas -2
BMW 8
Lloyds TSB 2
Omega -2
Panasonic -4
EDF 10
Olympic Media Buzz
LONDON 2012 PARTNERS
The Crown Estate today unveiled its
£300m redevelopment of Regent
Palace Hotel, just behind Piccadilly
Circus in London’s West End, into lux-
ury offices and shops.
The Queen’s property company said
it has signed its first office tenant, the
fund manager Generation, co-founded
by former US Vice President Al Gore, to
its 200,000 square feet of office space.
Organic food retailer Whole Foods
has also agreed to open a 17,000 square
ft store next year while fashion house
Coach and menswear brands Jack
Spade and Wolsey are also understood
to be close to signing leases.
The Regent Palace site forms part of
the Crown Estate’s Quadrant develop-
ment, an ambitious £1bn scheme to
revitalise and open up the south end
of Regent Street.
“[Quadrant 3] delivers a wholesale
transformation to this prominent part
of the West End. It is the largest and
most ambitious scheme we have ever
undertaken”, Roger Bright, the Crown
Estate’s outgoing chief executive said.
The Quadrant development will
also see the historic Cafe Royal on
Regent Street transformed into a 160-
bedroom five-star hotel, due to be com-
pleted in time for London’s 2012
Olympics.
Crown Estate unveils its
£300m redevelopment
BY KASMIRA JEFFORD
PROPERTY

7
th
November – 5
th
December 2011
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WARREN Buffett’s conglomerate
Berkshire Hathaway reported a small-
er third-quarter profit over the week-
end, after losing more than $2bn
(£1.24bn) on derivatives related to
stock market performance.
That was nearly three times what
Berkshire lost on the same instru-
ments a year ago. Buffett has criticised
derivatives in general, but said these
particular contracts were safe and
would ultimately be lucrative.
But Berkshire was
hurt, like many
other insurance
companies in
particular, by
sharp declines in a
broad range of
market values. In a
quarterly report to
the US Securities and
E x c h a n g e
Commission,
Berkshire said
the indexes covered by the contracts
fell anywhere from 11 per cent to 23
per cent in the quarter.
Berkshire reported a net profit of
$2.28bn compared with a year-earlier
profit of $2.99bn.
Cash at the end of the quarter was
$34.78bn, down from $47.89bn at the
end of June. During the third quarter
Berkshire funded the purchase of
chemical maker Lubrizol and a $5bn
investment in Bank of America.
Operating income rose across seg-
ments, except for the company’s
finance business, where it fell slightly.
Profits in the insurance business
rose as a rebound in reinsurance offset
sharp declines at auto insurer Geico.
Reinsurance benefitted from a reduc-
tion in liabilities, while Geico’s profits
fell on higher catastrophe losses.
Earnings were also nearly 10 per
cent higher at Berkshire’s next-
biggest unit, the Burlington
Northern railroad, as
revenue per car
rose by double
digits.
Buffett says
Berkshire hit
by derivatives
APPLE has dished out hundreds of
millions to its senior executives in a
bid to keep hold of its top staff in the
wake of Steve Jobs’ death.
Key men including marketing boss
Phil Schiller, chief financial officer
Peter Oppenheimer and operations
director Jeff Williams will each
receive packages worth $60m
(£37.4m). The packages are intended
to tie them to the firm for the next
five years, with half of the stock
grants vesting in 2013 and half in
2016.
New Apple chief executive Tim
Cook received a package worth
around $40m after taking over from
Steve Jobs in the summer.
Apple said in a regulatory filing:
“The company’s success depends
largely on the continued service and
availability of key personnel, includ-
ing its chief executive, its executive
team and highly skilled employees.
“Experienced personnel in the tech-
nology industry are in high demand
and competition for their talents is
intense, especially in the Silicon
Valley, where most of the company’s
key personnel are located.”
Apple announced in September its
quarterly revenue rose 39 per cent to
$28.27bn, slightly missing forecasts.
Apple hands
out millions to
key executives
Apple chief executive Tim Cook says it is vital to hang on to key men Picture: REUTERS
BY HARRY BANKS
FINANCIAL SERVICES

News
21 CITYA.M. 7 NOVEMBER 2011
400.24
4 Nov
ANALYSIS l Apple Inc
$
31 Oct 1 Nov 2Nov 3Nov 4Nov
407.5
405.0
402.5
400.0
397.5
395.0
BY STEVE DINNEEN
TECHNOLOGY

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stress, where it seems Horta-Osório is
not alone in feeling the strain. “Don’t
be alarmed if you hear a whirring
sound,” one 50-something Linklaters
partner notified Davies in a recent
meeting. “It’s just my heart monitor.”
GOING WITH A BANG
THE RECENT reunion for those who
worked on the floor of the London
Stock Exchange pre-1985 almost went
with a Big Bang in more ways than
one, The Capitalist hears.
As the City veterans relived their
lost decades upstairs at Drapers’ Hall,
downstairs the Occupy London pro-
testers were threatening to cause a dis-
turbance. “We have been told there
are bankers inside drinking cham-
pagne,” the St Paul’s campers berated
one Stock Exchange stalwart.
By the time the police arrived at
9.30pm, the protesters were starting
to disperse, having been assured there
were no Moët-guzzling masters of the
universe inside, “only old people
drinking soft drinks”. “But can you
imagine the damage they could have
caused?” said one horrified mole.
ON THE FENCE
MEANWHILE, William Pitt and Chris
Branch of Lloyd’s of London under-
writer Beazley crossed swords in a
duel at Devonshire Square.
Not to settle a professional liabili-
ty claim, you understand, but as
part of a fencing demonstration by
eight Olympic and Paralympic pro-
fessionals organised in the run-up
to London 2012 by the firm that
started its £1m sponsorship of
British fencing in January.
On hand to adjudicate as City
passers-by “had a go” in a series of
short public fights were the BBC’s
Graham Bell and 1998
Commonwealth silver medallist
Karim Bashir.
LLOYD BLANKFEIN GETS HIS JUST
DESSERTS FROM BUSINESS ELITE
THERE WAS only one sour note at the
Goldman Sachs and Financial Times
Business Book of the Year awards – the
Roquefort-flavoured ice-cream, which
went down about as well as sovereign
debt exposure at MF Global. “I’m not
sure about this,” said Jonathan Taylor
from HM Treasury as he laid down his
spoon with a grimace.
Thankfully, the rest of the evening
was more palatable. Lloyd Blankfein,
chairman and chief executive of
Goldman Sachs, announced Poor
Economics – “a rich book on the
ethics of poverty” – as this year’s win-
ner, while BBC Trust chairman Lord
Patten of Barnes gave the keynote
address. “One of my books turned
into a bestseller when a well-known
media group dropped it from their
catalogue… and I still remember Mr
Murdoch in my prayers,” opened the
UK’s “prime minister who never
was”, as one admirer put it.
Also dining at The Wallace
Collection were City veteran Sir
David Arculus, steel magnate
Lakshmi Mittal and Simon Davies,
the Linklaters leader handling the
liquidation of MF Global’s Asian busi-
ness and a friend of resting Lloyds
boss António Horta-Osório.
And so the conversation turned to
Santander chairman Lord Burns and British Land’s honorary president Sir John Ritblat
Foiled: William Pitt and Chris Branch
The Capitalist
22 CITYA.M. 7 NOVEMBER 2011
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
AS THE nights draw in, four private
investors were drawn to Boisdale of
Belgravia for what the Scottish institu-
tion does best: some reassuringly autum-
nal haggis, grouse, Scotch rarebit, wild
salmon and, of course, whisky. Make that
three measures of Royal Salute and one
of Glenlivet, thought the financiers as
they digested their long Hibernian lunch
in mellow mood after four bottles of
wine. Not just any old bin-ends, though:
one bottle of £150 Perrier Jouet Belle
Epoque champagne and three bottles of
1999 Domaine de la Romanée Conti
Richebourg burgundy at £350 a time.
So it wasn’t just the four aged Havana
cigars that went up in smoke by
2.33pm on that wintry October after-
noon, but almost £2,000-worth of cor-
porate profits as well.
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THE UK could already be suffering
from the start of a double dip reces-
sion, according to new data from
accountancy group BDO.
Revealing the latest bearish news
from its business trends report, BDO
partner Peter Hemington has called
on the government to confront
the downturn with radical
reforms to taxation and infra-
structure.
“We urge chancellor Osborne
[pictured] to tackle the slow-
ing recovery head on in his
Autumn Statement,”
Hemington said. “Supply
side reforms, in particular
reform of the tax system,
will be crucial if the UK is
to promote investment.”
Boosting capital spend-
ing could kick start the
economy, BDO said. “We
would like to see radical
measures considered – such as road
pricing and privatisation – to attract
private capital into the public infra-
structure,” added Hemington.
Businesses expect their turnover
to shrink over the next three
months, according to the BDO
index, which sank to 92.6 in October
from 93.3 in September, its lowest
level since June 2009.
“It is also the third consecutive
month that the index has been
below the critical 95 mark indicat-
ing on-trend growth, showing that
the UK economy could already be
contracting,” the report said.
The UK largest sector –
services – is being particu-
larly hit by current econom-
ic woes, the report showed.
The output index for the
summer was down from
93.9 to 92.9. Confidence in
the sector for the coming six
months also dropped, from
94.8 in September to 94.1
last month.
Reform urged
to avoid new
UK recession
BY JULIAN HARRIS
UK ECONOMY

News
24 CITYA.M. 7 NOVEMBER 2011
Greek affairs so labyrinthine
even Theseus would struggle
I
NVESTORS and traders alike spent
most of last week dazed and con-
fused. Equity, bond, commodity
and FX markets swung around
wildly as they responded to headline
news out of Greece and G20. There
was no time available for detailed
analysis, and even Theseus would
have struggled to navigate the
labyrinth that is Greek politics.
While outgoing Greek Prime
Minister Papandreou’s call for a refer-
endum was wildly disruptive, it pro-
vided a smokescreen for other issues.
Though final details of the coun-
try’s new coalition government will
not be known until later today, it
looks as if the Greek parliament has
secured its next bailout tranche. So
this week, Italy and France should
come back into focus. Italian yields
continue to rise and this is having a
knock-on effect on French bonds.
These are under pressure as the coun-
try’s banks have a significant expo-
sure to Italian sovereign debt.
The FTSE 100 index is called to
open up 33 points at 5,327. The
German DAX is expected to open up
34 points at 6,000 and the French
CAC 40 up 16 points at 3,140.
Following last week’s EU summit
and G20, today sees EU finance minis-
ters gather in Brussels for Ecofin
meetings. We will also get an update
on Eurozone retail sales and German
industrial production. Tomorrow sees
the latest updates on the UK’s
Manufacturing and Industrial
Production and the Swiss National
Bank Chairman Philipp Hildebrand
speaks later in the day. On
Wednesday we have Chinese inflation
data and the Bank of England’s MPC
releases its Rate Statement on
Thursday. We will also hear from Fed
chairman Ben Bernanke and commit-
tee members Janet Yellen and Charles
Evans as well.
The third quarter US earnings sea-
son begins to wind down now,
although there are still nearly 700
companies reporting this week.
Overall, earnings have been positive,
but there have been significant miss-
es, such as Apple and Wells Fargo. But
it is the Eurozone debt crisis which
should exert the greatest influence
on markets again this week.
Martin Slaney is director of global product
management at GFT
MARTIN ON
THE MARKETS
MARTIN SLANEY
26Aug 8Aug 16Sep 6Oct 26Oct
5,800
5,400
5,200
5,000
5,600
ANALYSIS l FTSE
5,527.16
4 Nov
26Aug 8Aug 15Sep 5Oct 25Oct
6,400
6,000
5,800
5,600
5,400
5,200
6,200
ANALYSIS l DAX 5966.16
4 Nov
THE OUTLOOK for small and medium
sized manufacturers is increasingly
bleak, according to figures released
today by employers’ organisation the
CBI.
Factories expect no growth in orders
and for stocks to whittle down in the
coming three months, with output set
to fall.
“Small and medium-sized manufac-
turers have seen domestic demand
flat-lining in the past three months,
and will have been particularly disap-
pointed by an unexpected fall in
export orders,” commented Lucy
Armstrong of the CBI.
A negative balance of minus eight
per cent of respondents indicated that
export orders fell in the three months
to October. Domestic orders were flat,
according to the survey.
The poor figures have hammered
sentiment in the industry, with
morale collapsing at its fastest rate
since April 2009. It was also the first
time since April 2009 – the peak of the
recession – that sentiment over
exports has dropped.
“A balance of minus 26 per cent of
firms reported that they were less opti-
mistic than three months ago,” the
report said. “Sentiment about export
prospects also deteriorated (minus 19
per cent).”
Employment at small and medium
sized (SME) factories has continued to
grow despite weakening economic
conditions, with a positive balance of
16 per cent reporting an increase in
headcount for the three months to
October.
Yet the impending squeeze is set to
reduce manufacturing job opportuni-
ties, with only a small positive balance
(four per cent) expecting to increase
headcount over the next three months.
“Investment intentions for the year
ahead have not improved,” Armstrong
added, “with firms still planning to
spend less on buildings (minus 20 per
cent) and plant and machinery (minus
nine per cent) relative to the previous
twelve months.”
Deteriorating
outlook for
SME factories
INFLATION is likely to dip next year
but only temporarily, with further
price hikes set to pile more misery
on savers and shoppers, a prominent
group of economists will warn today.
Strong price pressures will bite
again once the recovery finally gears
up, the Ernst & Young Item Club says.
Impending domestically-generat-
ed inflation renders the Bank of
England’s two per cent consumer
price index (CPI) target “unsustain-
able in the medium term”, Item
argues.
CPI has been above two per cent
for 22 consecutive months, spiking
to an eye-watering 5.2 per cent in
September. Inflation figures for
October are released next week.
“Our analysis suggests the rise in
margins will hold back the recovery
in real wages,” the report states.
“This pressure on the UK’s workforce
could last much longer than conven-
tional models of the economy sug-
gest. Consumers need to enjoy next
year’s respite as much as they can.”
The Item Club wants to see the
Bank of England “relax” its two per
cent CPI target.
More inflationary pressures could be
looming on horizon, economists warn
BY JULIAN HARRIS
UK ECONOMY

BY JULIAN HARRIS
UK ECONOMY

News
25 CITYA.M. 7 NOVEMBER 2011
BANK OF ENGLAND SET TO STICK WITH LOW RATES
THE BANK of
England is expect-
ed to hold interest
rates at the historic
low of 0.5 per cent
for the 33rd
straight month this
Thursday. Mervyn
King’s committee
voted last month to
boost the Bank’s
quantitative easing
programme by a
further £75bn.
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News
26 CITYA.M. 7 NOVEMBER 2011
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l BMW AG
60.0
57.5
55.0
52.5
50.0
47.5
46.0
Sep Oct Nov

57.86
4 Nov
BMW
After BMW beat quarterly profit forecasts
on Friday, Goldman Sachs rates the carmaker
as a “buy” with a target price of €109
(£93.78). The broker says the results, includ-
ing a significantly better-than-expected net
price evolution, should reassure investors of
the company’s ability to perform for the rest
of 2011 and into next year. BMW will launch
its 3-series in 2012, which should see it bene-
fit from a strong model cycle momentum.
ANALYSIS l Randgold Resources Ltd
7,250
7,000
6,750
6,500
6,250
6,000
Sep Oct Nov
p 7,310.00
4 Nov
RANDGOLD RESOURCES
Citi rates the gold miner as a “buy” with a
target price of £88.59 after last week’s third-
quarter results showed a 29 per cent rise in
profit from the previous three months. The
broker says mid-cap gold miners offer the
best opportunities for production growth
and exploration upside, with Randgold the
best among that group. The target price is
raised slightly from £88.46 based on a 1.6x
multiple of Citi’s £55.37 net present value.
ANALYSIS l RSA Insurance Group PLC
120.0
117.5
115.0
112.5
110.0
107.5
105.0
Sep Oct Nov
p 109.70
4 Nov
RSA
Nomura rates the insurance group as a
“buy” with a target price of 148p after
strong third-quarter numbers highlighted
its strong balance sheet and earnings. The
broker says RSA’s new CEO, Simon Lee, has
a strong operational track record with the
international segment. Though RSA has tra-
ditionally traded at a premium to the sector,
Nomura says it is justified given the higher
returns and lower risk profile.
Bibby Financial Services
The invoice finance specialist has
appointed Mark Riches as sales direc-
tor of its international trade finance
business. Riches, who joined Bibby
Financial Services in 2002, is promot-
ed following a four-year tenure as head
of sales in the south east.
Hogan Lovells
The law firm has strengthened its
international litigation and arbitra-
tion practice by hiring Patric
McGonigal in the firm’s Tokyo office.
McGonigal was formerly a partner in
Barlow Lyde & Gilbert’s international
commercial arbitration practice, lead-
ing a team in Singapore.
DAC Beachcroft
The law firm has hired Michael
Peeters, previously head of the region-
al ICT projects team at Pinsent
Masons in Leeds, as a partner to lead
a northern technology law team. The
firm has also promoted Claire
Reynolds and Julitta Yates to partner
in the employment & pensions and
real estate divisions respectively.
Redefine
Redefine International Property
Management has appointed Nick
Gregory as senior retail asset manag-
er to manage its £250m portfolio of
UK shopping centres. He joins from
Hammerson, where he spent the last
five years delivering asset manage-
ment activities.
Dechert
The international law firm has
appointed Charles Malpass as a part-
ner in its London office, effective from
January 2012. Malpass was most
recently a partner at LG.
Europa Capital
Tim Turnbull, previously chief invest-
ment officer at Hermes Real Estate,
has joined the fund manager’s man-
agement team, with the brief of
expanding Europa’s fund relationships.
CITY MOVES | WHO’S 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
Segro
The European real estate investment trust has
promoted Andy Gulliford (pictured) and Phil
Redding to the new roles of chief operating offi-
cer and chief investment officer respectively,
reporting to chief executive David Sleath.
Gulliford, who will oversee the group’s opera-
tional property teams in the UK and continental
Europe, was formerly managing director of
Segro’s business in continental Europe. Redding
rises from business unit director for London mar-
kets to manage the group’s investment strategy.
WALL STREET WEEK AHEAD
U
S stock investors have had to
take their own self-help course
on living with uncertainty due
to Europe’s crisis, and they may
need to draw on that this week
because it’s never clear when the next
upheaval will come.
Greece is still in turmoil. Prime
Minister George Papandreou will
stand down today, and more details
should emerge later of how the coun-
try’s new coalition government will
look.
Other challenges haven’t gone away,
such as keeping countries like Italy
from going the way of Greece. Two
years of crisis have taught investors to
be vigilant of new risks emerging from
Europe’s debt debacle.
“It takes away the risk of a referen-
dum or renegotiating new terms. Net-
net it’s a ‘risk-on’ event,” Thomas Roth,
executive director of US government
bond trading at Mitsubishi UFJ
Securities USA, in New York, said.
Though investors are cautious,
stocks may be able to keep in place the
recent upward trend as more evidence
suggests the US economy is progress-
ing despite Europe’s woes.
Friday’s US monthly jobs report sug-
gested some improvement in October,
even though the headline payroll
numbers appeared weak.
Nonfarm payrolls rose a tepid
80,000 in October, below economists'
expectations. But employers added
102,000 more jobs than previously esti-
mated in August and September.
And the US unemployment rate
slipped to nine per cent. It had been
stuck at 9.1 per cent for three straight
months. With results in from some
433 of the S&P 500 companies, 70 per
cent have beaten forecasts on third-
quarter earnings, defying views that
growth would be hit by the problems
in Europe and a slower economy in
China.
Business Features | Entrepreneurs
27
Donata Huggins asks
Patrick Reeve, the
founder of venture
capital firm Albion
Ventures, what sorts
of businesses he likes
V
OLATILITY in financial markets is at a
record high. Businesses must wake up to
the very real consequences of current
global events and the potential impact
on their bottom line. Volatility means risk and
uncertainty, and uncertainty is a serious con-
cern for business. These wild swings in com-
modity, equity and currency markets can and
have created major problems for those busi-
nesses that have not had the support and
advice to steer them through it.
For instance, for businesses that import or
export there have been huge currency swings,
and more are set to follow. Your profits could
be wiped out unless you hedge effectively
against these adverse movements. This week
alone we have seen how quickly markets can
turn. Greece has thrown the latest bailout
package back in the policy makers’ faces. A
disorderly default by Greece is now a likely
event. Greece is not a Lehmans, but an entire
country. If one country goes, where does that
leave other peripheral countries within the
Eurozone? Contagion is spreading like wild
fire, evidenced by Italian borrowing costs
reaching euro-era highs this week.
This volatility also affects small business in
other ways. Looking at what happened when
Lehmans collapsed, we saw a dramatic reduc-
tion in bank lending, spending by all sorts of
businesses and the world tip into recession.
Businesses need to conserve cash and not
have bad creditors on their books if they are
to survive any re-occurrence of this.
Europe is the UK’s largest trading partner
and turmoil in Europe has a direct impact on
our own economy. Add this to the slowdown
in the UK and the lack of a clear recovery, evi-
denced by a further round of quantitative eas-
ing only recently.
Emerging markets not long ago were all
surging through the turmoil, but now are
starting to slow. China notably saw a drop in
growth figures only recently. This is signifi-
cant as China is seen as an engine for growth.
The US as well is still in trouble, with policy-
makers there hinting at a third round of quan-
titative easing to stimulate the world’s largest
economy.
The current market situation is so concern-
ing that even Qatar, with its huge exposure to
oil, has started to hedge its oil prices. This is
something that very rarely happens, and is a
strong indication of how serious the situation
in the world market is. If countries are hedg-
ing in this way, businesses certainly should be.
All of these events are current and real
concerns. The issues creating volatility are not
going away in a hurry. Many would argue that
current concerns are on a much larger scale
than during the 2008 crisis. If we see nations
within the Eurozone default, there will be rip-
ple effects throughout the world. We are talk-
ing entire countries going bankrupt, not just a
bank or two.
Britain’s businesses simply have no choice
but to take action before it’s too late. In 2008
sterling lost 42 per cent of its value against
the US dollar and 35 per cent against the
euro. For businesses importing products from
China or Europe, who had not hedged against
these moves, it was catastrophic and in some
cases the Lehmans path was followed.
Take action now and implement protection.
Secure your profits for next year by looking to
what others are doing and also thinking about
what happened just three years ago when
Lehmans collapsed. Being over-exposed to
another 2008 simply should not be an option.
Stewart Blake is chief executive of Global
Reach Partners.
SMES NEED TO
BE CAREFUL OF
VOLATILITY
STEWART BLAKE
GLOBAL REACH PARTNERS
T
WO things matter hugely when it
comes to selecting a business for
investment,” says Patrick Reeve, the
founder and managing partner of
Albion Ventures, a venture capital firm.
“The business needs to offer an interest-
ing market opportunity and the entrepre-
neur heading it up has to be someone
who is very bright and adaptable.” But
what exactly does Reeve think is an “inter-
esting” market opportunity? Every entre-
preneur thinks his business is interesting.
He explains: “There’s no formula for
weighing up the different factors affect-
ing the choice to invest. You have to look
at each business on a case-by-case basis.”
He talks us through his choices, using
three recent examples.
HIGH RISK: DEXELA
What: Dexela develops technology that
detects breast cancer. It was different
from the existing technology because it
used low-dose X-rays to create three-
dimensional images.
Attraction: “It had something unique in a
market that needed to change. The chief
executive was bright, adaptable and
understood where we were coming from
because he had worked in finance before.”
Reservation: “It was a pre-revenue busi-
ness. Very rarely do venture capital folk
invest in things that have not yet proved
they can sell. Also, the inventor parts of
the business were not right for us and we
had to get rid of them.
In fact, apart from a handful of non-exec-
utive directors and the aforementioned
chief executive, we had to restructure the
whole business.”
MEDIUM RISK: RADNOR HOUSE SCHOOL
What: Radnor House School is a new co-
educational independent school for stu-
dents aged 7-18 in Twickenham. It has
specialist science labs, an art suite, music
school and all-weather play area. It
already has over 130 pupils, greatly
exceeding Reeve’s target expectations.
Attraction: “There was a considerable
market in the area for a private school.
There weren’t many of them, and it is a
wealthy area. We also got the building at
a good price, so we now have a strong
freehold asset.”
Reservation: “It was a start-up, so we
never quite knew whether people would
actually sign their kids up. Also, we’d
never been in the market before.”
LOW RISK: HOLIDAY INN EXPRESS, STANSTED
What: Albion Ventures invested £9.5m to
fund the construction of the 254-bed-
room Holiday Inn Express at Stansted
Airport.
Attraction: “It was an obvious market.
There weren’t any budget hotels around
the airport at the time.”
Reservation: “Since we did the construc-
tion and bought the land, it was a very
big initial investment.”
Company name: Albion Ventures
Company turnover: £230m under management
Number of staff: 25
Exit history: 43 exits over 15 years. “The aver-
age multiple is 1.6 x cost and our best so far has
been 10.5 x cost.”
Job title: Managing partner
Age: 51
Born: Kensington
Lives: Bayswater
Studied: French and Spanish, New College,
Oxford
Drinking: White Burgundy
Reading: Tristram Shandy
Idol: Marcus Aurelius
Talents: “Not trying to do anything too quickly.”
Favourite business book: William Pitt the
Younger: A Biography by William Hague
Awards: Albion Ventures was named Venture
Capital Trust of the Year, 2009, Venture Capital
Trust Manager of the Year 2009 and Healthcare
Investor of the Year 2011
Motto: “Vina liques et spatio brevi spem longam
reseces.” Translation: Be wise, strain the wine,
and scale back your long hopes to a short period.
First ambition: “Sadly, doing approximately
what I’m doing now.”
CV | PATRICK REEVE
Bright opportunities are
what an investor wants
Patrick Reeve, the founder of Albion Ventures
ENTREPRENEURS NEWS | IN BRIEF
SMES TO HIRE MORE STAFF THIS YEAR
Over two-thirds of small and medium-sized
businesses owners intend to hire new staff in
the next six months. This has emerged as the
results of research done by the London
Entrepreneurial Exchange (LEE). The majority
of business owners also agree with the gov-
ernment’s decisions to extend the unfair
employee dismissal rules from one to two
years and to not hold a referendum on
Britain’s membership in the EU. The survey
was completed by more than 250 company
owners and chief executives representing
small and medium-sized businesses.
BANKS TO LEND MORE SOON
NatWest and RBS plan to increase lending by
15 per cent in the next three months. A new
low interest fixed-rate loan, ranging from
£25,000 to £250,000, will also be available
for small businesses. This loan does not have
any arrangement fees or required down pay-
ments, leading to a discount of up to 1.5 per
cent. Additionally, the banks will provide
access to guides, hotlines and other
resources. This means that a business bor-
rowing £75,000 can save as much as 60 per
cent on the cost of the loan over three years,
and face no penalties for early redemption.
WOMEN TO BECOME BUSINESS MENTORS
Home secretary Theresa May announced that
5,000 women will be recruited and trained to
mentor aspiring businesswomen over the next
three years. May hopes recruiting the mentors
will help encourage and stimulate female entre-
preneurs to counter this male dominance: “We
want the UK to be the best place in the world to
start and grow a business, and for the next
decade to be the most entrepreneurial and
dynamic in Britain’s history. Women can be at
the heart of that.” This happened in the wake of
a leaked report showing that the Tories lacked
female support.
B
Y AND large, British families do not
choose the education their children
receive. For the majority of parents that
choice is made for them, by the distance
from their front door to the school gate, and
whether they have the means to buy into the
catchment of another school or avail them-
selves of a private alternative.
Advocates of local schooling maintain that
what we need is a single good school in every
community and that the most effective way
that parents can support improvement is by
showing loyalty to their local primary or sec-
ondary. In encouraging competition for places,
they argue, new schools on the block attract
away aspirational parents and divert resources
from the schools that need them most. If it had
its priorities right, they maintain, the govern-
ment would be investing its resources in
improving existing schools.
However, while community-based schooling
has obvious social benefits, experience suggests
that school improvement on this model, with
no competitive challenge, can at best deliver
only slow, incremental progress towards urgent
educational goals, and not without significant
investment. Massive increases in public spend-
ing in the decade to 2010 ensured that most
schools had more than adequate resources to
effect change, but this did not translate to
improved educational outcomes. According to
OECD Pisa benchmarking, national attainment
relative to overseas competitors in fact fell in
this period — in reading, from 7th place in 2000
down to 25th, and in mathematics, from 8th
place down to 28th. Clearly increasing govern-
ment spending alone is not enough; I believe
we need a system that allows for diverse
approaches to school improvement.
Contrary to the belief of successive Labour
governments between 1997 and 2010, the right
outcomes cannot be engineered from the cen-
tre. At the time of the 2010 general election, the
Conservatives seemed to recognise that, after
more than a decade of steady expansion of the
statutory responsibilities of schools to families
and their communities and a host of misguided
and ineffectual strategic interventions from
Whitehall, the integrity of the teaching profes-
sion had been compromised. The message was
clear that responsibility needed to be restored
to headteachers and that teachers needed to be
trusted to get on with the job.
In spite of its ostensible commitment to alle-
viating the burden on schools and giving teach-
ers greater autonomy, the government has in
fact increased regulation of schools, while balk-
ing at the challenge of deregulating teacher
training and recruitment and the process by
which headteachers are accredited. Moves to
lift the requirement for qualified teacher status
from free schools and to allow those certified
overseas to practice in the UK without needing
to retrain are welcome, but national pay and
conditions have been retained, which has ham-
pered mainstream headteachers’ scope to relate
pay to performance and to undertake more fun-
damental rethinking of how to recruit and
deploy teachers and other personnel.
Successive government attempts to stimulate
innovation and competition in UK education by
opening up supply to both private and not-for-
profit sectors have gained only limited traction,
largely due to the conservative influence of
unions and local authorities’ vested interest in
keeping services in-house. Where the private
sector has been allowed to contribute, efficien-
cy gains have been startling, yet today only 5
per cent of primary and 28 per cent of second-
ary age pupils in the UK are enrolled at state
schools which receive input from private firms,
far behind many of those widening their lead
in the international performance tables.
Meanwhile, the free school policy has brought
choice to only a very few neighbourhoods. More
radical voucher-style reforms that might liber-
ate for-profit supply and break down the divide
between state and independent sectors seem a
distant possibility. In short, we are far from the
flexible school system, responsive to demand
and accountable to parents, that we need.
For competition to work, and parental
choice to drive up quality, we need a market
framework that will enable successful schools
to grow, failing schools to close, and significant
new capacity to be brought to the system.
Establishing a national funding formula that
better incentivises good schools to get bigger,
and makes failing schools face the conse-
quences of pupil shortfalls would be a step in
the right direction. Even better would be a lift-
ing of the restrictions on private school firms
and education management organisations and
a funding system designed to activate con-
sumer choice. Most fundamentally however,
effort is needed to establish a new standard for
policy success. We must place the right of par-
ents to choose the education that best suits
their children’s needs at the heart of schools
policy, and place responsibility for outcomes
with individual schools.
James Croft is the director of the Centre for Market
Reform of Education. www.cmre.org.uk
28
The Forum
CITYA.M. 7 NOVEMBER 2011
Despite its rhetoric, the
government has increased
the regulation of schools.
We cannot improve schools
from the centre: A bold call
for more choice in education
cityam.com/forum
JAMES CROFT
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.
29
New research on
a wider timescale
disputes findings
of huge increases
The debate over
chief executives’
pay isn’t simple
I
NCOME Data Services (IDS) released a
report on executive pay last week, draw-
ing hysterical condemnation of business
leaders from unions, politicians and jour-
nalists. However, research by Harvey Nash’s
Board Practice and the London Business
School’s MBA Consulting Team reveals that
FTSE 100 chief executive pay is just not as sim-
ple as many would like us to believe.
First, since the downturn started in 2007 not
a single chief executive listed in the report’s
top ten earners had a significant rise in base
salary. In fact, the average rise was in total 1.6
per cent over four years, well below the growth
in UK average earnings during that time.
So, much of the growth has come from per-
formance-related pay. But for the report’s
authors to pick one year where the economy
started to recover and performance improved,
places the report out of context. Over the last
four years, the picture is very different: since
2007 chief executives’ performance-related pay
has actually declined by 2 per cent.
Second, the IDS report, in some instances, is
actually misleading. Four of the top ten earn-
ers’ compensation is stated in their annual
accounts in US dollars. To simply convert this
to sterling during a period where sterling has
devalued 25 per cent further artificially over-
states the so-called rise in pay.
Third, the report stated that chief execu-
tives’ rewards were not in line with share price
movement, suggesting rewards for failure.
Looking at the IDS data just for 2010 this
seems correct, but the Harvey Nash/London
Business School research found that between
January 2006 and December 2010 changes in
share price explained about 30 per cent of the
variation in direct pay of continuously-serving
chief executives. Longer-term, chief executives
are being judged on share performance.
Let’s take Sir Martin Sorrell, chief executive
of WPP, which employs 153,000 creative profes-
sionals and is the sort of digital company
which Britain needs to champion if it is to
rebalance its economy. With a £250,000 loan,
Sorrell grew WPP from £1m to a global winner
worth £8bn over 26 years. His contract provides
for dismissal at will and over 50 per cent of his
package is performance-related. WPP competes
in a global market where 12 per cent of rev-
enues are generated in the UK and almost a
third are from emerging markets. Compare
that to a US-based competitor of WPP: Time
Warner paid its chief executive Jeff Bewkes
$26m in 2010, acknowledging that the compa-
ny had a history of wasteful acquisitions.
London has become one of the most success-
ful capital markets for global companies,
employing executives from all over the world.
In seeking to attract the very best talent avail-
able, boards must offer compensation pack-
ages in global currency and increasingly
compete with Asia in hiring wealth-creators.
When UK plc is being encouraged to seek
new growth in stronger emerging markets, it
is disappointing that both the Prime Minister
and the leader of the opposition did not take
this opportunity to make the case for attract-
ing global wealth-creating organisations to the
UK for the whole country’s benefit.
Albert Ellis is the chief executive of Harvey Nash
Group.
Bailouts vs zombies
As Marc Sidwell says [The Zombie
Menace of Anti-capitalist Thought,
Friday], the Occupy London
protest is leaderless, yet he lumps
all the protesters together as anti-
capitalist. From what I’ve gath-
ered, some may be anti-capitalist
but there is a range of views; many
are simply disgusted with the way
that banks have been bailed-out at
the taxpayers’ expense or the way
that bankers continue to receive
bonuses in the six or seven figures,
when their company cannot even
manage to turn a profit. Some
criticisms of contemporary capi-
talism are not simply atavistic.
These people are appalled at
Anglo-Saxon capitalism in particu-
lar. Not all wish to live in a commu-
nist utopia, some would simply
prefer a more caring form of capi-
talism, along the lines of Germany,
which still manages to be the
European economic powerhouse.
To lump all protesters together as
anti-capitalist is just disingenuous.
Ian Marsden
Speak your mind
The Forum is open for you to
take part. Got a sharp comment
on one of today’s columns or
rapid response topics? Do you
have another subject relating to
business and the economy you
want to share your opinion on?
We want to hear your views.
Readers are invited to comment
on the web: cityam.com/forum;
by email: theforum@cityam.com;
and on Twitter: @cityamforum.
The best responses will be
reprinted in The Forum.
RAPID RESPONSES
ALBERT ELLIS
CITYA.M. 7 NOVEMBER 2011
The Forum
M
UCH has been
written in
recent weeks
about the
protest camp outside St
Paul’s and about the City
of London Corporation’s
attitude to it.
I would like to take
this opportunity to bring
a degree of clarity to the situation.
The City fully supports the democratic right to
protest and at no point have we tried to prevent peo-
ple from doing so.
However, as the local authority for the Square
Mile, we also have responsibilities to our local resi-
dents and businesses as well as to tourists and other
visitors.
Just like any other local authority, the City of
London has a legal obligation to maintain access to its
highways and to ensure they remain fit for purpose.
That is why we are engaged in regular discussions
with the protesters with a view to reaching a peace-
ful resolution at the earliest possible opportunity.
St Paul’s is one of the world’s great buildings and
the City of London Corporation is committed to
ensuring it remains accessible to all. Indeed, the City
has provided considerable support – both financial
and otherwise – to the cathedral in recent years, not
least when we donated £1.8m to support its 300th
anniversary campaign in 2004.
I did, however, find myself disagreeing with the
church over one particular issue last week: the
Archbishop of Canterbury Rowan Williams’s com-
ments supporting the implementation of a Financial
Transaction (FTT) or “Robin Hood” Tax.
This is an idea that has already gained serious trac-
tion within the European Union and was discussed
further at the G20 meeting in Cannes last week.
With one study suggesting that 62 per cent of the
revenues generated by an EU-wide transaction tax
would come from the UK, it is clear that any such
measure would represent more of a tax on London
than on the EU.
However, the impact of such a tax would be felt
right across the EU.
The European Commission’s own impact assess-
ment says that an EU-FTT could lose more money
than it raises as a result of 70 per cent to 90 per cent
of all derivatives trading – much of which takes place
in London – moving to more welcoming financial cen-
tres overseas.
European policymakers could be pricing all of the
EU’s financial centres out of the global marketplace.
What is the use of creating a level playing field within
the EU, if we can no longer compete with other finan-
cial centres outside the Union?
Put simply, how can you tax something that is no
longer here?
If policy-makers truly believe in a Transaction Tax
then any such proposals must – as the UK govern-
ment has made clear time and again – proceed on a
global basis and have their impact on growth careful-
ly examined.
The G20 has achieved a significant amount in
recent years and it is only right that it should contin-
ue to set the agenda for change, with the UK and the
EU driving forward this process.
I suspect a lot of those camping outside St Paul’s
would be in favour of an FTT and while I might not
agree with their views, I will certainly accept their
right to protest.
But protesting does not require a permanent
campsite on a public highway.
Stuart Fraser is the policy chairman at the City of
London Corporation.
Reclaim the City from
Robin Hood tax risks
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
BY STUART FRASER
30
Wealth Management | Spread Betting
THE WEEK AHEAD in association with
THE TIPSTER
RETAIL IS
WEARING
A BIT THIN
I
T HAS been a tough year for retail-
ers, in particular clothing retailers,
who’ve been subjected to not only
weakening consumer demand, but
also higher cotton prices. With the
share price down some 15 per cent so
far this year, investors will be hoping
that Tuesday’s numbers might spark
something for Marks and Spencer.
Capital Spreads quotes 318.4p-319.1p.
Mobile phone giant Vodafone may
have been on the asset disposal path of
late, but the accompanying impact on
income could lead to a rather mixed
reception for this week’s interim earn-
ings. Uncertainty over the global eco-
nomic outlook is also weighing, but
many analysts are dialling up bullish
target prices for the stock. If Vodafone
can continue to leverage the smart-
phone market, then the future may
well be bright, even if it’s not orange.
IG Index quotes 174.4p-174.8p.
This week sees the release of the lat-
est trading update from Lloyds
Banking Group after RBS’s better
than expected results last week.
Markets will be hoping for a similarly
robust performance despite the uncer-
tainty surrounding the health of the
CEO. CMC Markets offers a quote of
28.434p-28.473p.
Associated British Foods updates
the markets tomorrow. Its shares
popped above strong resistance on
Friday at the 1,100p level. The 100-day
moving average is strong support at
1,073p, so it might be a good play to
buy on any dips back around 1,100p,
with a stop-loss around 1,055p. Spread
Co offers a spread of 1,123.2p-1,125.5p.
The telecommunications world has
been shaken up over recent years with
competition being upped by the likes of
Apple, HTC and Google. And with the
recent record-breaking sales of the
iPhone 4S, will Carphone Warehouse
be able to defy the bearish chart
watchers out there when they bring
their earnings release to the public eye
tomorrow? Capital Spreads quotes a
price of 342.5p-345.0p.
Philip Salter
COMPANY NEWS
l Today, Rentokil Initial announces. The global busi-
ness services company – which is active in Europe,
America, Africa and Asia – will be looking for
results that aren’t a pest.
l Tomorrow, Vodafone and Marks & Spencer both
announce. The former is the world’s largest mobile
telecommunications company, and the latter is the
food and clothing retailer – a stalwart of the UK’s
highstreets.
l On Wednesday, HSBC Holdings announces. The
holding company for the HSBC Group is headquar-
tered in Canary Wharf – for now.
COMPANY NEWS
l SSE, formerly Scottish and Southern Energy,
also announces on Wednesday. The energy com-
pany formed in 1998 when a merger was
sparked between Scottish Hydro-Electric and
Southern Electric.
l On Thursday, Experian, the Dublin-based glob-
al credit information group announces.
l Land Securities Group announces on the same
day. The Group is the UK’s largest commercial
property company, investing in a wide range of
properties from offices and retail locations to
industrial and warehouse facilities.
ECONOMICS
l Tomorrow, the Office for National Statistics
releases Manufacturing Production statistics, a key
indicator in determining the short-term strength of
the economy. It is currently at 1.5 per cent.
l On Wednesday, China’s the National Bureau of
Statistics of China will release the Consumer Price
Index inflation
l The Bank of England will announce its interest
rate decision on Thursday. Rates will almost certain-
ly remain at 0.5 per cent, even though Retail Price
Index inflation is currently ripping through the
economy at 5.2 per cent.
POLITICAL NEWS
l The government will organise a new export drive
this week in an effort to encourage firms to pro-
mote international trade to clients. Lord Green, min-
ister for trade and investment, believes increasing
exports, as well as shifting focus to small and medi-
um-sized business, will help boost the UK economy.
l The South Korean and United States militaries
will link to practise simulation exercises Tomorrow
and Wednesday. The joint exercises are in prepara-
tion for the possibility of a North Korean nuclear
threat. Kim Jong-il, the “Dear Leader” of North
Korea recently revealed his love of Chinese dolphins
and French poodles.
(1 divided by 2).
l 0.382 (or 38.2 per cent): the
reciprocal of the golden ratio
squared (i.e. 89 / 233).
l 0.236 (or 23.6 per cent): the
reciprocal of the golden ratio
cubed (i.e. 55 / 233).
Some traders plot these
Fibonacci retracements on charts
to try to predict levels of support
and resistance based on previous
highs and lows (see, right).
Here we ask two experts for
their thoughts on this tool of tech-
nical analysis. One a proponent of
the use, the other a detractor of
the abuse, of Fibonacci retrace-
ments.
Fibonacci –
either to-do
or voodoo
F
AMED for introducing the
Hindu-Arabic positional
number system to Europe,
Leonardo Fibonacci was one
of the greatest mathematicians of
his day (c.1170-c.1250) and 80
years is not a bad spread for the
Middle Ages. He didn’t discover
Fibonacci numbers, but in Liber
Abaci he enlightened Europeans
on this Indian intellectual innova-
tion. He explained Fibonacci num-
bers by asking, under contrived
circumstances, how many pairs of
rabbits are created by one pair of
rabbits in one year? The following
numbers are revealed: 1, 1, 2, 3, 5,
8, 13, 21, 34, 55, 89, 144, 233, 377
etc. A Fibonacci sequence is also
simply the sum of the two previ-
ous numbers in the chain.
Fascinatingly, nature is laced
though with Fibonacci patterns –
in seashells, branches and stems,
in the heads of sunflowers, flow-
ering artichokes, and the patterns
of pineapples and pinecones.
Each step in the Fibonacci
moves us closer to what is called
the golden ratio – approximately
1.618, and from this the Fibonacci
ratios, beloved by some traders for
plotting Fibonacci retracements,
are worked out:
l 0.618 (or 61.8 per cent): the
reciprocal of the golden ratio.
l 0.50 (or 50 per cent): the sec-
ond number divided by the third
Philip Salter asks two experts for
their opinions on retracements
Some traders turn to nature
for inspiration
ANALYSIS l Long and short Fibonacci Retracements
38.2%
38.2%
50.0%
50.0%
68.2%
68.2%
LONG
SHORT
ANALYSIS l Gold's recent Fibonacci moves
Aug2011 Jul 2011 Jun2011 Oct 2011 Sep2011 Nov2011
1,440.00
1,480.00
1,520.00
1,560.00
1,600.00
1,640.00
1,680.00
1,720.00
1,760.00
1,800.00
1,840.00
1,880.00
1,920.00 /oz
100.0% 1,919.76
61.8% 1,772.07
50.0% 1,725.62
38.2% 1,680.36
0.0% 1,532.67
31
O
N THURSDAY, the world’s equity
markets got an unexpected, but thor-
oughly welcome present: a 25 basis
points reduction in the European
Central Bank’s (ECB) key lending rate. And
the generous benefactor? None other than
Mario Draghi, its newly installed head.
Analysts had not expected the move,
not least because Draghi only assumed his
new role a few days ago. With the legacy
of Jean-Claude Trichet still fresh, many
presumed Draghi would ease slowly into
the job, reluctant to tarnish his predeces-
sor’s good name with a rate cut this soon.
As the former head of the Italian
Central Bank, Mario Draghi brings with
him a briefcase full of skills and character
traits that should serve him, and the ECB,
well. Critics and admirers alike say he is a
politically intuitive, pragmatic, calculating
individual. In some ways, the classic central
banker – conservative, thoughtful, cautious,
deliberate, discreet – yet he’s also flexible
and open-minded.
It is, perhaps, that open-mindedness
which brought Friday’s interest rate cut.
Economists and market participants have
been demanding one for quite some time,
condemning previous rate hikes as ill-timed
and unnecessary. The numbers prove it.
Throughout the Eurozone, even within the
powerhouse economies of Germany and
France, the data is bland at best, dismal at
worst. Confidence and sentiment among
households, businesses and investors polled
has regularly struck new lows.
Manufacturing is down, inflation is up, and
the outlook is grim. And after the recent
events in the Eurozone and Greece, mar-
kets needed to be buoyed.
There was surely no disagreement from
anyone, anywhere, that something had to
be done. And many believed that only the
head of the ECB, in the form of Mario
Draghi, would be able to make magic. The
question was, did he believe it too?
The answer is yes, he believes; markets
see that now. But what does that single,
much needed, act signify? Does it repre-
sent a turning point for the ECB? Will they
become more proactive? Will markets see
more aggressive stimuli, perhaps even
quantitative easing? Simply put, will the
markets be getting a new ECB; one which
could bring some stability to the system?
Of course, that stability comes with a
caveat; it is at the expense of a significantly
lower euro. The equity markets loved the
interest rate cut. Indeed, the news of the
rate cut pushed the European bourses
higher, with investors hopeful that they
could recoup some of the losses they
incurred in the past few trading sessions.
The currency markets, on the other hand,
didn’t. The euro took a swift, hard hit
against the dollar immediately after the
announcement, losing nearly 100 pips
before regaining some traction.
While Draghi did not make any promises
or, indeed, hints as to future rate cuts, by
virtue of the fact that he acted today, at a
time when very few expected him to,
speaks volumes as to the type of central
banker we can expect – one who jumps
into action when action is what’s desper-
ately needed.
WHAT TO EXPECT?
Right now, it’s a little too early to make a
decisive call as to whether the ECB is mov-
ing in a definitive direction of proactive,
growth encouraging monetary policy. The
extremely low bond yields in short-term US,
German and UK debt instruments signal to
me that there are large quantities of cash on
the sidelines. Adding to that the extreme
but legitimate scenario of a Greek financial
collapse being priced into equities, perhaps
more easing from the ECB, and a short
squeeze could be around the corner.
With the Greek debacle looming, equities
in either direction aren’t exactly a safe play,
though commodities such as gold and oil
could actually benefit from the easing of
monetary conditions along the way. Hence,
I continue to preserve my positive outlook
for both precious metals and oil.
After analysing the aggregation of
traders in the eToro investment community,
and comparing the result to their targets
from the previous week, it’s evident that
eToro traders make very sound, very accu-
rate predictions. However, even though the
euro has surpassed the $1.4 level, eToro
traders still view this as a key pivot position,
with 30,730 net positions short on the euro,
targeting $1.354 which is only slightly lower
than the last month’s review. That means
that the euro fall, at least in the minds of
eTorians, is still rather limited. Nevertheless,
37 per cent of positions are on the euro,
with a ratio of 2 to 1 in favour of short.
Asset Allocation
%
EUR/USD
37%
GBP/USD
21%
GOLD/USD
14%
AUD/USD
4%
EUR/JPY
4%
GBP/JPY
4%
OTHERS
16%
DRAGHI TURNOVER
RAISES ECB MOVES
LIOR ALKALAY
SENIOR RESEARCH ANALYST, ETORO
TO-DO
IAN O’SULLIVAN
SPREAD CO
ONE of the
greatest chal-
lenges and
dilemmas for
any trader when
contemplating a trade is where is
the best possible entry point, exit
point and where to place a stop
loss. This can take years of prac-
tice, tests and learning from mis-
takes and even then it can still be
a challenge. This is one of the rea-
sons why most traders these days
turn to technical analysis to aid
their decision making, with
Fibonacci retracements being one
of the most popular.
Of course sceptics will say that
technical analysis methods, such
as Fibonaccis, just become self-ful-
filling prophecies. That is, as so
many traders tend to trade the
same patterns then the chances of
a reversal happening at a certain
point increases. But there-in also
lies the opportunities for traders.
When you place a trade you
should always be looking for a
trade with the probabilities in
your favour, and you should
always look at the bigger picture.
So try to find a significant
Fibonacci level that a price is
approaching, look for other sup-
porting indicators – such as a
hinging relative strength index
(RSI) or stochastic – and then
place your trade.
When placing a trade, look for a
Fibonacci level above or below
which you could place your stop
losses, to put the probabilities of
it surviving on your side.
Remember, if everyone is looking
to sell at a Fibonacci level, the
resistance will be strong.
Conversely, if you are a momen-
tum trader, look to go long as a
price breaks through a Fibonacci
level, as stop losses and momen-
tum buyers can often accelerate
the move in your favour.
You only need to look at recent
movements in gold to see a big
picture Fibonacci move (see graph
above, left), with the rebound
from the September slide being
held repeatedly by the 38.2 per
cent Fibonacci level at $1,680.
Selling here would have yielded
multiple profitable trades. Then,
when it broke through, it reached
the 50 per cent level of $1,735 in
just two days, where it offered
support. The 61.8 per cent level
was almost reached on Friday at
$1,772. The dip to the 50 per cent
level on 2 November was a great
case for supporting evidence for
the trade, with the moving aver-
age convergence-divergence
(MACD) crossing to the upside and
also support being offered from
the 100-day moving average.
And even on Friday, a beautiful
trade in euro-dollar was possible
(see graph above, middle) by sell-
ing around $1.3833, the 38.2 per
cent Fibonacci of the April to
September fall (orange line), plus
the 38.2 per cent Fibonacci of last
week’s highs to Monday’s lows at
$1.3852 (blue line). Also check out
the high on 27 October, with an
overbought RSI.
So, the advice is look at
Fibonaccis – they can be powerful
aids to help decision making and
position planning. But remember,
no one tool is the golden ticket
and they can be blown out of the
water by significant economic
news or developments.
VOODOO
DAVID JONES
IG INDEX
ONE of my
favourite ranti-
ng topics is the
t e n d e n c y
among those of
us who use technical analysis to
make this approach to markets
much more complicated than it
really needs to be.
I am all in favour of a pragmatic
approach to markets. Ultimately
the name of the game is making
money, so if that is the end result
of whatever analysis technique
then more power to your elbow,
but I think lots of people make
life more difficult than it has to
be.
The various Fibonacci tech-
niques are a great case in point – I
can remember (sadly) many, many
hours spent in the early days of
my career figuring out how to
apply this almost mystical set of
numbers to the markets.
I think the reason that the
more complicated and esoteric
approaches appeal is because of
the belief amongst many in the
beginning that there is some sort
of hidden magic system to the
markets and if this can only be
found then an abundance of
Lamborghinis will result.
One of the problems I have with
Fibonacci (and other approaches)
is the idea that there is a hidden
precise order to markets – and
more so the over complication
that it implies.
Ultimately, markets can do one
of three things – up, down or side-
ways. I am a big fan of keeping it
simple, looking at big levels in the
markets to identify trading oppor-
tunities and/or following trends.
There is a great example of this
approach in the FTSE last week
(see graph above, right) – despite
the Greek inspired turmoil, once
again the FTSE buyers returned
ahead of what had been a major
level for the FTSE in October,
5,330. Weakness back to here had
proved tempting in the past – and
again last week it was a nice low
risk, high reward potential trade.
And not needing any hint of mar-
ket voodoo to identify it.
ANALYSIS l Last week's FTSE
12 13 16 14 26 25 23 21 20 19 18 30 28 27 04 03 Nov 02
5,650
5,600
5,550
5,500
5,450
5,400
5,350
5,300
5,250
5,200
5,150
5,100
5,800
5,700
5,750
Major support level
ANALYSIS l Last week's euro-dollar
01 June 02May 01 Apr 01 Sept 01 Aug 01 July 03Oct 01 Nov
1.32000
1.34000
1.36000
1.38000
1.40000
1.42000
1.44000
1.46000
1.48000
$
38.2% 1.38330
50.0% 1.40465
61.8% 1.42560
100.0% 1.49360
BAE Systems . . . . . .273.9 -3.9 361.1 248.1
Chemring Group . . . .510.5 0.5 736.5 485.0
Cobham . . . . . . . . . . .176.6 -2.6 236.5 168.5
Meggitt . . . . . . . . . . . .384.2 -9.5 397.6 304.9
QinetiQ Group . . . . . .120.0 0.3 136.3 96.7
RoIIs-Royce Group . .714.5 -1.5 726.0 557.5
Senior . . . . . . . . . . . . .162.6 -2.0 190.6 132.6
UItra EIectronics . . .1630.0 -1.0 1830.0 1305.0
GKN . . . . . . . . . . . . . .190.3 -0.2 245.0 157.0
BarcIays . . . . . . . . . . .183.6 -1.0 333.6 138.9
HSBC HoIdings . . . . .540.0 -1.0 730.9 473.6
LIoyds Banking Gr . . .28.6 -0.3 70.3 27.6
RoyaI Bank of Sco . . .23.1 0.3 49.0 19.7
Standard Chartere .1412.5 -17.5 1950.0 1169.5
AG Barr . . . . . . . . . .1213.0 19.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .321.4 -0.7 503.5 289.9
Diageo . . . . . . . . . . .1308.0 -8.0 1344.0 1112.0
SABMiIIer . . . . . . . . .2216.0 -30.0 2354.5 1979.0
AZ EIectronic Mat . . .229.4 -3.4 338.1 206.1
Croda Internation . .1748.0 18.0 2081.0 1367.0
EIementis . . . . . . . . . .142.0 1.9 187.4 104.8
Johnson Matthey . .1844.0 -22.0 2119.0 1523.0
Victrex . . . . . . . . . . .1216.0 -8.0 1590.0 1025.0
YuIe Catto & Co . . . . .163.8 0.1 253.0 148.0
LON GD ONCE FIX AM...........1756.00 23.50
SILVER LDN FIX AM ..................34.14 -0.30
MAPLE LEAF 1 OZ ....................36.72 0.14
LON PLATINUM AM................1640.00 45.00
LON PALLADIUM AM...............658.00 12.00
ALUMINIUM CASH .................2123.00 20.50
COPPER CASH ......................7844.50 -67.00
LEAD CASH...........................1990.00 14.00
NICKEL CASH......................18695.00 45.00
TIN CASH.............................22080.00 480.00
ZINC CASH ............................1921.50 65.00
BRENT SPOT INDEX................110.34 -0.24
SOYA .....................................1219.25 25.75
COCOA..................................2720.00 55.00
COFFEE...................................226.80 2.80
KRUG.....................................1816.60 -6.00
WHEAT ....................................151.25 -0.75
AIR LIQUIDE........................................90.67 -1.54 100.65 80.90
ALLIANZ..............................................76.22 -2.50 108.85 56.16
ANHEUS-BUSCH INBEV ....................39.50 -0.41 45.11 33.85
ARCELORMITTAL...............................14.67 -0.03 28.55 10.47
AXA......................................................10.54 -0.40 16.16 7.88
BANCO SANTANDER...........................5.82 -0.05 9.20 5.05
BASF SE..............................................51.32 -2.01 70.22 42.19
BAYER.................................................44.90 -1.74 59.44 35.36
BBVA......................................................6.13 -0.17 9.17 4.94
BMW ....................................................57.86 -2.75 73.85 43.49
BNP PARIBAS.....................................30.88 -1.04 59.93 22.72
CARREFOUR ......................................19.66 -0.49 34.12 14.66
CRH PLC .............................................12.79 -0.12 17.40 10.28
DAIMLER.............................................34.99 -1.40 59.09 30.52
DANONE..............................................48.75 -0.21 53.16 41.92
DEU.BOERSE OFFRE ........................39.47 -0.74 55.75 35.46
DEUTSCHE BANK..............................28.37 -0.92 48.70 20.79
DEUTSCHE TELEKOM.........................9.02 -0.23 11.38 7.88
E.ON.....................................................16.64 -0.79 25.54 12.50
ENEL......................................................3.30 -0.08 4.86 2.81
ENI .......................................................15.55 -0.18 18.66 11.83
FRANCE TELECOM............................12.63 -0.21 17.39 11.12
GDF SUEZ ...........................................20.08 -0.77 30.05 18.32
GENERALI ASS...................................12.35 -0.38 17.05 10.34
IBERDROLA..........................................4.91 -0.16 6.50 4.29
INDITEX ...............................................64.89 0.56 69.40 50.92
ING GROEP CVA...................................6.01 -0.18 9.50 4.21
INTESA SANPAOLO.............................1.13 -0.06 2.47 0.85
KON.PHILIPS ELECTR.......................14.94 -0.44 25.45 12.01
L'OREAL..............................................77.83 -1.55 91.24 68.83
LVMH..................................................115.40 -2.70 132.65 94.16
MUNICH RE.........................................93.47 -2.30 126.00 77.80
NOKIA....................................................4.81 -0.09 8.49 3.33
REPSOL YPF.......................................20.67 -0.34 24.90 17.31
RWE.....................................................28.91 -1.76 55.88 21.22
SAINT-GOBAIN...................................32.05 -0.98 47.64 26.07
SANOFI ................................................49.35 -1.36 56.82 42.85
SAP......................................................44.07 -0.24 46.15 32.88
SCHNEIDER ELECTRIC.....................40.45 -1.93 61.83 35.94
SIEMENS .............................................74.05 -1.68 99.39 62.13
SOCIETE GENERALE.........................17.93 -0.69 52.70 14.32
TELECOM ITALIA..................................0.87 -0.01 1.16 0.70
TELEFONICA ......................................15.00 -0.18 19.69 12.50
TOTAL..................................................37.04 -0.54 44.55 29.40
UNIBAIL-RODAMCO SE...................138.85 -0.10 162.95 124.05
UNICREDIT............................................0.78 -0.05 2.03 0.64
UNILEVER CVA...................................24.46 -0.15 25.09 20.90
VINCI ....................................................34.38 -0.78 45.48 29.49
VIVENDI ...............................................15.48 -0.53 22.07 14.10
VOLKSWAGEN VORZ ......................125.30 -5.55 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5527.16 -18.48 -0.33
FTSE 250 INDEX . . . . . . . 10387.80 -18.87 -0.18
FTSE UK ALL SHARE . . . . 2849.89 -8.53 -0.30
FTSE AIMALL SH . . . . . . . . 724.21 2.83 0.39
DOWJONES INDUS 30 . . 11983.24 -61.23 -0.51
S&P 500 . . . . . . . . . . . . . . . 1253.23 -7.92 -0.63
NASDAQ COMPOSITE . . . 2686.15 -11.82 -0.44
FTSEUROFIRST 300 . . . . . . 980.01 -10.10 -1.02
NIKKEI 225 AVERAGE. . . . 8801.40 160.98 1.86
DAX 30 PERFORMANCE. . 5966.16 -167.02 -2.72
CAC 40 . . . . . . . . . . . . . . . . 3123.55 -71.92 -2.25
SHANGHAI SE INDEX . . . . 2528.29 20.20 0.81
HANG SENG. . . . . . . . . . . 19842.79 600.29 3.12
S&P/ASX 20 INDEX . . . . . . 2587.20 68.10 2.70
ASX ALL ORDINARIES . . . 4342.50 105.00 2.48
BOVESPA SAO PAOLO. . 58669.92 473.62 0.81
ISEQ OVERALL INDEX . . . 2664.54 -17.60 -0.66
STI . . . . . . . . . . . . . . . . . . . . 2778.97 34.80 1.27
IGBM. . . . . . . . . . . . . . . . . . . 863.86 -12.02 -1.37
SWISS MARKET INDEX. . . 5659.83 -8.22 -0.15
Price Chg %chg
3M........................................................79.30 -0.34 98.19 68.63
ABBOTT LABS ...................................53.33 -0.51 55.61 45.07
ALCOA ................................................10.93 0.06 18.47 8.45
ALTRIA GROUP..................................27.37 -0.10 28.14 23.20
AMAZON.COM..................................216.48 -1.81 246.71 156.77
AMERICAN EXPRESS........................51.18 -0.50 53.80 41.25
AMGEN INC.........................................55.17 -0.53 61.53 47.66
APPLE...............................................400.24 -2.83 426.70 297.76
AT&T....................................................29.16 -0.28 31.94 27.20
BANK OF AMERICA.............................6.49 -0.42 15.31 5.13
BERKSHIRE HATAW B.......................77.24 -1.58 87.65 65.35
BOEING CO.........................................65.80 -0.39 80.65 56.01
BRISTOL MYERS SQUI ......................31.34 -0.40 33.27 20.05
CATERPILLAR....................................95.74 -0.26 116.55 67.54
CHEVRON.........................................106.43 0.30 110.01 80.41
CISCO SYSTEMS................................18.03 -0.15 24.60 13.30
CITIGROUP.........................................30.34 -0.44 51.50 21.40
COCA-COLA.......................................67.78 -0.87 71.77 61.28
COLGATE PALMOLIVE......................88.06 -0.46 94.89 74.86
CONOCOPHILLIPS.............................70.71 0.21 81.80 58.37
CVS/CAREMARK................................38.02 0.71 39.50 29.45
DU PONT(EI) DE NMR........................48.70 -0.15 57.00 37.10
EXXON MOBIL....................................78.52 -0.34 88.23 63.47
GENERAL ELECTRIC.........................16.39 -0.28 21.65 14.02
GOOGLE A........................................596.14 -1.36 642.96 473.02
HEWLETT PACKARD.........................26.97 0.13 49.39 19.92
HOME DEPOT.....................................36.39 -0.06 39.38 28.13
IBM.....................................................186.38 -0.92 190.53 141.18
INTEL CORP .......................................23.74 -0.46 26.78 19.16
J.P.MORGAN CHASE.........................33.97 -0.41 48.36 27.85
JOHNSON & JOHNSON.....................64.12 -0.22 68.05 57.50
KRAFT FOODS A................................35.18 -0.60 36.30 24.30
MC DONALD'S CORP ........................93.81 0.81 93.84 72.14
MERCK AND CO. NEW......................34.02 -0.51 37.65 29.47
MICROSOFT........................................26.25 -0.28 29.46 23.65
OCCID. PETROLEUM.........................97.64 2.43 117.89 66.36
ORACLE CORP...................................32.55 -0.56 36.50 24.72
PEPSICO.............................................61.99 -0.81 71.89 58.50
PFIZER ................................................19.66 -0.22 21.45 16.25
PHILIP MORRIS INTL .........................70.21 -0.58 72.74 55.85
PROCTER AND GAMBLE ..................63.03 -0.18 67.72 56.57
QUALCOMM INC ................................56.50 0.39 59.84 44.62
SCHLUMBERGER ..............................74.97 -0.96 95.64 54.79
TRAVELERS CIES..............................58.14 -0.44 64.17 45.97
UNION PACIFIC ................................101.24 -0.25 107.89 77.73
UNITED TECHNOLOGIE ....................77.80 -0.64 91.83 66.87
VERIZON COMMS ..............................37.17 -0.28 38.95 31.60
WAL-MART STORES..........................57.50 0.08 57.96 48.31
WALT DISNEY CO ..............................34.76 -0.27 44.34 28.19
WELLS FARGO & CO.........................25.40 -0.41 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 ..................0.826 0.00
LIBOR Euro - 12 months ................2.008 -0.05
LIBOR USD - overnight...................0.141 0.00
LIBOR USD - 12 months.................0.948 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 .........................3.120 0.02
European repo rate.........................0.621 -0.04
Euro Euribor ....................................1.028 -0.10
The vix index ...................................30.75 -0.17
The baItic dry index ........................1.817 -0.04
Markit iBoxx...................................236.75 0.16
Markit iTraxx..................................167.24 -6.98
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.3788 0.0006
C/£ 0.8589 UNC
C/¥ 107.80 0.0500
/C 1.1628 0.0001
/$ 1.6028 0.0004
/¥ 125.45 UNC
FTSE 100
5527.16
18.48
FTSE 250
10387.80
18.87
FTSE ALLSHARE
2849.89
8.53
DOW
11983.24
61.23
NASDAQ
2686.15
11.82
S&P 500
1253.23
7.92
RPC Group . . . . . . . .350.0 -3.0 384.8 215.4
Smiths Group . . . . . .966.0 -1.0 1429.0 907.5
Brown (N.) Group . . .262.3 0.7 311.2 251.1
Carpetright . . . . . . . . .464.6 7.1 835.5 440.1
Debenhams . . . . . . . . .64.6 -0.9 75.7 51.2
Dignity . . . . . . . . . . . .799.0 -3.0 854.5 640.0
Dixons RetaiI . . . . . . .10.8 -0.3 27.3 10.6
DuneImGroup . . . . . .496.4 -7.1 550.0 383.9
HaIfords Group . . . . .340.1 2.6 459.7 268.6
Home RetaiI Group . . .91.0 -4.2 235.0 90.7
Inchcape . . . . . . . . . .320.4 -4.9 425.4 268.1
JD Sports Fashion . .841.5 11.5 1030.0 753.5
Kesa EIectricaIs . . . . .98.4 -2.5 174.0 80.0
Kingfisher . . . . . . . . .262.5 -7.5 287.1 217.0
Marks & Spencer G . .323.5 4.5 413.2 301.8
Mothercare . . . . . . . .151.0 -2.4 627.5 147.3
Next . . . . . . . . . . . . .2724.0 -7.0 2745.0 1868.0
Sports Direct Int . . . .239.4 -0.8 266.2 125.5
WH Smith . . . . . . . . . .553.5 11.0 558.0 433.8
Smith & Nephew . . . .549.0 -8.0 742.0 515.0
Synergy HeaIth . . . . .821.0 -2.5 981.0 770.5
Barratt DeveIopme . . .89.4 0.3 119.0 67.5
BeIIway . . . . . . . . . . . .715.0 -9.0 753.5 511.0
BaIfour Beatty . . . . . .245.8 -0.4 357.3 228.6
GaIIiford Try . . . . . . . .473.0 -0.5 530.0 276.5
Kier Group . . . . . . . .1413.0 -9.0 1445.0 1097.0
Drax Group . . . . . . . .541.5 -9.0 551.5 353.6
SSE . . . . . . . . . . . . . .1314.0 -43.0 1423.0 1111.0
Domino Printing S . .564.0 7.5 705.0 434.3
HaIma . . . . . . . . . . . . .338.0 2.2 429.6 306.3
Laird . . . . . . . . . . . . . .151.7 1.5 207.0 127.9
Morgan CrucibIe C . .280.9 -2.2 357.1 222.3
Oxford Instrument . .825.5 0.5 1010.0 495.0
Renishaw . . . . . . . . .1018.0 15.0 1886.0 862.0
Spectris . . . . . . . . . .1290.0 30.0 1679.0 1039.0
Aberforth SmaIIer . . .536.5 4.5 714.0 508.5
AIIiance Trust . . . . . .339.4 0.2 392.7 310.2
Bankers Inv Trust . . .390.0 -0.8 428.0 346.5
BH GIobaI Ltd. GB .1187.0 10.0 1210.0 1058.0
BH GIobaI Ltd. US . . . .11.8 -0.1 12.2 10.4
BH Macro Ltd. EUR . . .19.4 0.2 20.1 15.8
BH Macro Ltd. GBP 2000.0 15.0 2070.0 1630.0
BH Macro Ltd. USD . . .19.1 0.0 20.1 15.8
BIackRock WorId M .659.5 -4.5 815.5 574.5
BIueCrest AIIBIue . . .168.2 0.0 176.2 162.4
British Assets Tr . . . .119.5 0.1 140.5 109.0
British Empire Se . . .458.0 4.5 533.0 409.9
CaIedonia Investm .1550.0 11.0 1928.0 1470.0
City of London In . . .281.2 -0.2 306.9 257.0
Dexion AbsoIute L . .133.9 0.8 151.0 130.0
Edinburgh Dragon . .223.9 -0.8 262.1 201.4
Edinburgh Inv Tru . . .469.4 -2.2 492.2 414.9
EIectra Private E . . .1555.0 -10.0 1755.0 1287.0
F&C Inv Trust . . . . . .290.4 0.0 327.9 261.5
FideIity China Sp . . . . .77.5 0.0 128.7 70.0
FideIity European . . .993.0 -8.0 1287.0 912.0
HeraId Inv Trust . . . . .466.0 4.6 545.5 419.0
HICL Infrastructu . . . .118.6 0.3 121.3 112.7
Impax Environment . .95.5 0.3 130.5 88.5
JPMorgan American .831.5 10.5 916.0 721.5
JPMorgan Asian In . .196.0 1.7 250.8 170.1
JPMorgan Emerging .529.5 2.5 639.0 480.1
JPMorgan European .709.0 -6.0 983.5 692.5
JPMorgan Indian I . . .375.4 -1.6 502.0 350.0
JPMorgan Russian .515.5 -3.5 755.0 415.1
Law Debenture Cor . .355.0 -1.9 385.0 309.8
MercantiIe Inv Tr . . . .929.5 -1.0 1137.0 856.5
Merchants Trust . . . .374.0 -3.0 431.8 347.0
Monks Inv Trust . . . .316.0 -3.6 367.9 298.1
Murray Income Tru . .624.0 -3.0 673.0 568.0
Murray Internatio . . .896.5 -8.0 991.5 818.5
PerpetuaI Income . . .255.0 -1.7 276.0 234.8
PersonaI Assets T .33390.0-140.0 33725.030210.0
PoIar Cap TechnoI . .349.5 6.0 391.2 299.5
RIT CapitaI Partn . . .1338.0 -1.0 1348.0 1131.0
Scottish Inv Trus . . . .455.0 0.1 524.0 417.0
Scottish Mortgage . .653.0 0.0 781.0 586.5
SVG CapitaI . . . . . . . .200.0 0.7 279.8 187.9
TempIe Bar Inv Tr . . .875.0 0.0 952.0 791.0
TempIeton Emergin .561.0 -2.5 689.5 497.0
TR Property Inv T . . .165.0 -0.9 206.1 150.0
TR Property Inv T . . . .75.8 1.0 94.0 69.5
Witan Inv Trust . . . . .449.7 -2.0 533.0 401.5
3i Group . . . . . . . . . . .195.8 -1.9 340.0 184.1
3i Infrastructure . . . .120.2 0.6 125.2 113.1
Aberdeen Asset Ma .190.9 1.1 240.0 167.8
Ashmore Group . . . .335.6 6.2 420.0 301.5
Brewin DoIphin Ho . .121.5 -1.2 185.4 113.7
CameIIia . . . . . . . . . .8812.5 -82.510950.0 8800.0
CharIes TayIor Co . . .135.5 -0.4 187.0 122.0
City of London Gr . . . .70.0 0.0 93.6 68.0
City of London In . . .349.8 1.0 461.5 321.3
CIose Brothers Gr . . .696.0 -9.0 888.5 656.5
CoIIins Stewart H . . . .58.3 -0.3 90.8 58.0
EvoIution Group . . . . .83.0 0.0 94.0 62.3
F&C Asset Managem .68.4 -2.5 92.9 56.1
Hargreaves Lansdo .495.7 1.1 646.5 402.5
HeIphire Group . . . . . . .3.1 0.2 21.0 2.2
Henderson Group . . .114.9 -0.4 173.1 95.1
Highway CapitaI . . . . .12.0 -0.5 21.0 6.5
ICAP . . . . . . . . . . . . . .350.4 -18.0 570.5 344.3
IG Group HoIdings . .452.7 0.4 539.0 393.6
Intermediate Capi . . .230.9 -7.6 360.3 197.9
InternationaI Per . . . .225.0 -13.7 388.8 196.5
InternationaI Pub . . . .116.2 0.7 118.3 108.6
Investec . . . . . . . . . . .368.3 1.0 538.0 331.8
IP Group . . . . . . . . . . . .70.8 -0.3 72.0 29.9
Jupiter Fund Mana . .220.6 0.3 337.3 184.9
Liontrust Asset M . . . .58.3 -1.8 94.3 57.5
LMS CapitaI . . . . . . . . .60.3 0.1 64.8 44.8
London Finance & . . .23.0 0.5 23.5 16.5
London Stock Exch .873.0 -6.0 1076.0 717.0
Lonrho . . . . . . . . . . . . .13.5 0.0 19.8 12.5
Man Group . . . . . . . . .140.0 -4.7 311.0 136.0
Paragon Group Of . .184.8 0.5 206.1 134.6
Provident Financi . .1051.0 -13.0 1124.0 728.5
Rathbone Brothers .1088.0 4.0 1257.0 928.0
Record . . . . . . . . . . . . .21.0 -2.4 45.0 19.0
RSM Tenon Group . . .26.5 0.3 66.3 20.3
Schroders . . . . . . . .1370.0 -16.0 1922.0 1183.0
Schroders (Non-Vo .1212.0 -2.0 1554.0 970.0
TuIIett Prebon . . . . . .324.1 -5.9 428.6 322.0
WaIker Crips Grou . . .46.0 0.0 51.5 45.0
BT Group . . . . . . . . . .191.2 -1.5 204.1 158.6
CabIe & WireIess . . . .39.0 -0.4 52.9 31.3
CabIe & WireIess . . . .27.4 -0.9 76.9 26.3
COLT Group SA . . . .100.5 0.6 156.2 91.6
KCOM Group . . . . . . . .72.7 -1.1 84.0 47.5
TaIkTaIk TeIecom . . .127.0 -1.3 168.3 116.3
TeIecomPIus . . . . . . .740.0 0.5 750.5 379.8
Booker Group . . . . . . .76.4 -0.6 80.0 54.5
Greggs . . . . . . . . . . . .511.0 0.5 550.5 429.1
Morrison (Wm) Sup .312.2 5.1 314.8 262.7
Ocado Group . . . . . . . .88.3 -4.4 285.0 84.8
Sainsbury (J) . . . . . . .302.0 -0.1 391.5 263.5
Tesco . . . . . . . . . . . . .405.6 -1.2 439.0 356.3
Associated Britis . . .1130.0 12.0 1182.0 940.0
Cranswick . . . . . . . . .709.5 -14.5 883.5 588.5
Dairy Crest Group . . .339.1 0.1 424.9 325.0
Devro . . . . . . . . . . . . .257.7 -1.3 296.9 223.5
Premier Foods . . . . . . . .3.4 0.1 35.1 3.2
Tate & LyIe . . . . . . . . .681.0 0.5 684.5 510.0
UniIever . . . . . . . . . .2067.0 -1.0 2114.0 1777.0
Mondi . . . . . . . . . . . . .465.5 -1.9 664.0 448.1
Centrica . . . . . . . . . . .297.7 -1.6 345.8 282.6
InternationaI Pow . . .330.0 -1.4 448.6 279.4
NationaI Grid . . . . . . .622.5 -4.0 649.5 530.0
Pennon Group . . . . . .711.0 -4.5 737.5 584.5
Severn Trent . . . . . .1543.0 -12.0 1571.0 1368.0
United UtiIities . . . . .616.5 -3.0 631.5 543.5
Cookson Group . . . . .484.3 -8.8 724.5 395.8
DS Smith . . . . . . . . . .211.0 1.8 266.2 164.4
Rexam . . . . . . . . . . . .345.2 -0.6 400.0 299.8
Price Chg High Low
BerkeIey Group Ho .1248.0 -20.0 1299.0 789.5
Bovis Homes Group .478.2 -7.3 494.6 326.5
Persimmon . . . . . . . .502.5 -14.5 518.5 338.4
Reckitt Benckiser . .3293.0 -7.0 3648.0 3015.0
Redrow . . . . . . . . . . . .114.5 -0.6 139.0 98.4
TayIor Wimpey . . . . . . .37.5 0.5 43.3 23.8
Bodycote . . . . . . . . . .280.2 -3.7 397.7 225.6
Charter Internati . . . .910.0 1.0 912.5 538.5
Fenner . . . . . . . . . . . .345.9 7.0 422.5 263.0
IMI . . . . . . . . . . . . . . . .822.5 -6.0 1119.0 636.5
MeIrose . . . . . . . . . . .338.1 -2.7 365.4 265.7
Northgate . . . . . . . . . .249.0 -5.6 346.7 202.0
Rotork . . . . . . . . . . .1727.0 7.0 1858.0 1501.0
Spirax-Sarco Engi . .1890.0 -31.0 2063.0 1649.0
Weir Group . . . . . . .1931.0 17.0 2218.0 1375.0
Ferrexpo . . . . . . . . . . .316.9 11.0 499.0 238.7
TaIvivaara Mining . . .226.9 -9.7 622.0 205.0
BBAAviation . . . . . . .182.9 6.2 240.8 156.0
Stobart Group Ltd . . .120.0 0.2 163.6 117.5
AdmiraI Group . . . . .1186.0 1.0 1754.0 1126.0
AmIin . . . . . . . . . . . . .290.7 -8.2 427.0 270.6
Huntsworth . . . . . . . . .59.8 -0.8 85.0 55.3
Informa . . . . . . . . . . . .372.9 -3.0 461.1 313.9
ITE Group . . . . . . . . . .183.8 1.7 258.2 157.7
ITV . . . . . . . . . . . . . . . . .65.2 0.1 93.5 51.7
Johnston Press . . . . . . .4.7 0.2 12.8 4.1
MecomGroup . . . . . .156.8 10.3 310.0 134.5
Moneysupermarket. .107.4 -0.1 120.4 75.7
Pearson . . . . . . . . . .1152.0 4.0 1207.0 926.0
PerformGroup . . . . .212.0 2.0 234.5 150.0
Reed EIsevier . . . . . .546.5 1.5 590.5 461.3
Rightmove . . . . . . . .1381.0 35.0 1383.0 736.5
STV Group . . . . . . . . .106.0 0.0 168.0 90.3
Tarsus Group . . . . . .127.0 -0.5 165.0 114.0
Trinity Mirror . . . . . . . .48.8 0.3 106.3 37.5
UBM . . . . . . . . . . . . . .504.0 3.5 725.0 416.0
UTV Media . . . . . . . . .120.9 2.9 150.0 101.0
WiImington Group . . .88.0 -1.6 183.0 82.5
WPP . . . . . . . . . . . . . .663.5 -10.5 846.5 578.0
YeII Group . . . . . . . . . . .3.7 0.3 16.1 3.4
African Barrick G . . .551.0 -9.0 618.5 393.5
AIIied GoId Minin . . .158.2 -0.8 281.3 34.4
AngIo American . . .2338.5 -18.0 3437.0 2138.5
AngIo Pacific Gro . . .281.0 -2.0 369.3 237.9
Antofagasta . . . . . . .1211.0 21.0 1634.0 900.5
Aquarius PIatinum . .165.5 -5.7 419.0 163.1
BeazIey . . . . . . . . . . . .126.0 0.3 139.2 109.6
CatIin Group Ltd. . . .387.0 -10.2 421.4 331.5
Hiscox Ltd. . . . . . . . . .380.3 2.5 424.7 340.5
Jardine LIoyd Tho . . .761.0 -3.5 775.0 571.5
Lancashire HoIdin . . .740.0 30.0 750.0 529.0
RSA Insurance Gro . .109.7 0.3 143.5 105.3
Aviva . . . . . . . . . . . . . .328.8 -0.7 477.9 275.3
LegaI & GeneraI G . . .105.7 -2.7 123.8 89.8
OId MutuaI . . . . . . . . .108.2 -1.2 144.8 98.1
Phoenix Group HoI . .517.0 20.0 688.0 451.1
PrudentiaI . . . . . . . . .620.5 -5.0 777.0 509.0
ResoIution Ltd. . . . . .271.5 -1.5 316.1 211.3
St James's PIace . . . .337.6 -4.7 376.0 236.2
Standard Life . . . . . . .208.3 -1.2 244.7 172.0
4Imprint Group . . . . .245.0 -2.0 295.0 200.0
Aegis Group . . . . . . .137.1 -3.1 158.5 115.7
BIoomsbury PubIis . . .97.0 1.9 138.0 95.0
British Sky Broad . . .739.0 6.0 850.0 618.5
Centaur Media . . . . . . .38.8 0.0 73.0 36.0
Chime Communicati .207.5 2.0 298.5 173.0
Creston . . . . . . . . . . . .88.5 0.0 121.0 72.0
DaiIy MaiI and Ge . . .420.7 3.1 594.5 343.4
Euromoney Institu . .677.0 7.0 736.0 522.5
Future . . . . . . . . . . . . . .10.5 0.0 30.0 9.8
Haynes PubIishing . .220.0 0.0 257.0 203.5
BHP BiIIiton . . . . . . .1987.5 1.5 2631.5 1667.0
Centamin Egypt Lt . .107.1 0.4 197.1 89.7
Eurasian NaturaI . . .675.0 -1.0 1125.0 522.0
FresniIIo . . . . . . . . . .1839.0 -41.0 2150.0 1296.0
GemDiamonds Ltd. .220.0 14.1 306.0 179.8
GIencore Internat . . .434.6 -5.5 531.1 348.0
HochschiId Mining . .445.9 7.7 680.0 397.0
Kazakhmys . . . . . . . .951.0 15.0 1671.0 730.0
Kenmare Resources . .40.1 -0.5 59.9 22.8
Lonmin . . . . . . . . . . .1063.0 -16.0 1983.0 974.5
New WorId Resourc .513.0 28.0 1060.0 410.5
PetropavIovsk . . . . . .753.5 -2.5 1165.0 543.5
RandgoId Resource 7310.0 -45.0 7485.0 4425.0
Rio Tinto . . . . . . . . .3485.0 39.0 4712.0 2712.5
Vedanta Resources 1257.0 -19.0 2559.0 948.0
Xstrata . . . . . . . . . . .1002.0 -29.5 1550.0 764.0
Inmarsat . . . . . . . . . . .463.1 -16.4 719.5 389.7
Vodafone Group . . . .173.0 -0.7 182.8 155.1
Genesis Emerging . .474.4 8.4 568.0 430.0
Afren . . . . . . . . . . . . . . .81.9 -5.2 171.2 73.6
BG Group . . . . . . . . .1383.0 -4.0 1564.5 1144.0
BP . . . . . . . . . . . . . . . .452.6 -4.2 509.0 363.2
Cairn Energy . . . . . . .291.9 -8.1 469.7 261.4
EnQuest . . . . . . . . . . .105.7 3.5 158.5 86.6
Essar Energy . . . . . .312.1 5.8 589.5 235.1
ExiIIon Energy . . . . . .300.6 -2.4 469.7 184.2
Heritage OiI . . . . . . . .205.2 -7.7 486.0 190.0
Ophir Energy . . . . . . .256.5 -1.7 299.0 184.5
Premier OiI . . . . . . . . .373.5 5.8 535.0 310.0
RoyaI Dutch SheII . .2169.0 -9.0 2326.5 1883.5
RoyaI Dutch SheII . .2219.0 -23.0 2336.0 1890.5
SaIamander Energy .204.5 8.0 317.6 182.3
Soco Internationa . . .319.3 -3.2 400.0 279.8
TuIIow OiI . . . . . . . . .1430.0 15.0 1493.0 945.5
Amec . . . . . . . . . . . . .901.0 -4.5 1251.0 740.5
Hunting . . . . . . . . . . .661.0 -15.5 817.0 530.0
Kentz Corporation . .490.8 -13.2 511.5 275.5
LampreII . . . . . . . . . . .245.4 -1.6 395.2 220.7
Petrofac Ltd. . . . . . .1403.0 -6.0 1685.0 1108.0
Wood Group (John) .619.5 5.0 715.8 468.4
Burberry Group . . . .1368.0 -9.0 1600.0 996.0
PZ Cussons . . . . . . . .367.9 0.2 409.0 320.5
Supergroup . . . . . . . .599.5 -1.5 1820.0 591.0
AstraZeneca . . . . . .2974.0 -2.5 3194.0 2543.5
BTG . . . . . . . . . . . . . .285.4 11.1 309.7 210.1
Genus . . . . . . . . . . . .1013.0 -13.0 1111.0 800.0
GIaxoSmithKIine . . .1379.0 1.0 1400.5 1127.5
Hikma Pharmaceuti .647.5 4.0 900.0 555.5
Shire PIc . . . . . . . . . .2007.0 -4.0 2136.0 1481.0
CapitaI & Countie . . .173.0 -0.8 203.7 142.5
Daejan HoIdings . . .2750.0 50.0 2954.0 2282.0
F&C CommerciaI Pr .104.5 1.1 108.0 88.0
Grainger . . . . . . . . . . . .92.3 1.3 133.2 77.3
London & Stamford .114.5 0.7 140.0 111.6
SaviIIs . . . . . . . . . . . . .309.2 1.2 427.1 256.2
UK CommerciaI Pro . .78.0 1.5 85.5 70.4
Unite Group . . . . . . . .174.0 -0.1 224.1 152.9
Big YeIIow Group . . .258.3 0.4 352.2 234.2
British Land Co . . . . .506.5 4.0 629.5 452.0
CapitaI Shopping . . .317.5 -3.8 424.8 296.4
Derwent London . . .1678.0 21.0 1880.0 1400.0
Great PortIand Es . . .367.0 -0.2 445.0 317.4
Hammerson . . . . . . . .406.6 3.6 490.9 353.0
Hansteen HoIdings . . .77.0 0.7 89.5 70.0
Land Securities G . . .691.0 12.0 885.0 616.0
SEGRO . . . . . . . . . . . .231.7 -1.3 331.3 210.1
Shaftesbury . . . . . . . .500.0 0.0 539.0 431.7
Aveva Group . . . . . .1625.0 32.0 1799.0 1298.0
Computacenter . . . . .387.0 4.0 490.0 354.8
Fidessa Group . . . . .1602.0 22.0 2109.0 1409.0
Invensys . . . . . . . . . . .223.0 3.0 364.3 199.6
Logica . . . . . . . . . . . . .84.4 -0.6 147.2 73.9
Micro Focus Inter . . .343.1 4.7 426.2 239.4
Misys . . . . . . . . . . . . .290.0 2.7 420.2 214.9
Sage Group . . . . . . . .276.1 -3.9 302.0 231.7
SDL . . . . . . . . . . . . . . .648.0 7.0 711.5 555.0
TeIecity Group . . . . . .597.5 1.0 605.0 430.0
Aggreko . . . . . . . . . .1787.0 23.0 2034.0 1394.5
Ashtead Group . . . . .163.1 -1.2 207.9 99.4
Atkins (WS) . . . . . . . .550.0 -2.0 820.0 490.2
Babcock Internati . . .705.0 8.0 733.0 513.5
Berendsen . . . . . . . . .443.6 -7.2 568.0 391.3
BunzI . . . . . . . . . . . . .800.5 -3.5 820.5 676.5
Cape . . . . . . . . . . . . . .476.0 8.1 591.5 358.3
Capita Group . . . . . . .707.5 -9.0 786.5 635.5
CariIIion . . . . . . . . . . .331.7 -1.3 403.2 298.8
De La Rue . . . . . . . . .864.0 3.5 870.0 549.5
DipIoma . . . . . . . . . . .328.5 -1.3 414.3 263.3
EIectrocomponents .214.9 -1.8 294.9 182.2
Experian . . . . . . . . . . .799.5 3.0 833.5 665.0
FiItrona PLC . . . . . . . .378.0 0.2 397.1 227.5
G4S . . . . . . . . . . . . . . .253.9 -2.5 291.0 219.9
Hays . . . . . . . . . . . . . . .78.0 -1.5 133.6 66.6
Homeserve . . . . . . . .322.4 -1.9 532.0 315.7
Howden Joinery Gr . .117.6 1.5 127.5 90.0
Interserve . . . . . . . . . .329.6 2.1 341.3 183.5
Intertek Group . . . . .1951.0 -9.0 2148.0 1715.0
MichaeI Page Inte . . .385.0 -5.7 567.0 338.7
Mitie Group . . . . . . . .246.5 1.0 257.5 194.1
Premier FarneII . . . . .170.0 -0.1 308.8 144.5
Regus . . . . . . . . . . . . . .78.1 0.2 119.0 64.0
RentokiI InitiaI . . . . . . .69.0 -0.7 104.9 64.8
RPS Group . . . . . . . . .189.1 6.9 253.0 156.6
Serco Group . . . . . . .510.5 0.5 618.5 490.9
Shanks Group . . . . . .115.3 1.2 130.9 103.0
SIG . . . . . . . . . . . . . . . .96.0 -0.2 153.5 83.8
SThree . . . . . . . . . . . .252.3 -2.0 447.6 213.2
Travis Perkins . . . . . .853.0 -1.5 1127.0 715.0
WoIseIey . . . . . . . . .1851.0 -9.0 2261.0 1404.0
ARM HoIdings . . . . . .645.0 43.0 651.0 338.9
CSR . . . . . . . . . . . . . .175.6 0.6 447.0 172.8
Imagination Techn . .463.1 12.9 502.0 296.9
Pace . . . . . . . . . . . . . . .66.2 -2.1 231.8 65.0
Spirent Communica .128.0 0.4 160.3 109.5
British American . .2921.0 33.0 2939.5 2282.5
ImperiaI Tobacco . .2286.0 36.0 2314.0 1784.0
Betfair Group . . . . . . .769.5 -0.5 1490.0 567.0
Bwin.party Digita . . .134.6 2.1 257.6 100.6
CarnivaI . . . . . . . . . .2183.0 -32.0 3153.0 1742.0
Compass Group . . . .565.5 -1.5 612.0 512.5
Domino's Pizza UK . .460.4 8.5 586.0 377.0
easyJet . . . . . . . . . . . .353.8 -5.9 479.0 301.0
FirstGroup . . . . . . . . .331.5 -1.4 412.6 301.8
Go-Ahead Group . . .1347.0 6.0 1598.0 1203.0
Greene King . . . . . . .447.3 -0.3 518.0 410.0
InterContinentaI . . .1087.0 -35.0 1435.0 955.0
InternationaI Con . . .156.9 -11.5 305.0 141.6
JD Wetherspoon . . . .425.4 -0.6 468.3 380.5
Ladbrokes . . . . . . . . .137.1 -1.6 155.3 114.0
Marston's . . . . . . . . . . .94.0 -0.6 117.1 84.6
MiIIennium& Copt . .419.3 -13.7 600.5 375.6
MitcheIIs & ButIe . . . .231.3 -4.3 361.0 216.4
NationaI Express . . .221.1 0.9 270.2 219.5
Rank Group . . . . . . . .135.4 -1.6 153.7 109.5
Restaurant Group . . .289.0 -5.5 335.0 254.9
Stagecoach Group . .247.5 -2.3 272.4 200.0
Thomas Cook Group .47.7 -2.0 204.8 33.7
TUI TraveI . . . . . . . . . .162.2 -2.5 271.9 137.2
Whitbread . . . . . . . .1644.0 -30.0 1887.0 1409.0
WiIIiamHiII . . . . . . . . .213.5 1.5 244.1 155.5
Abcam . . . . . . . . . . . .356.5 5.3 460.0 307.0
AIbemarIe & Bond . .310.5 0.0 400.1 272.0
Amerisur Resource . .13.0 0.3 29.0 9.5
Andor TechnoIogy . .504.0 4.0 685.0 370.0
ArchipeIago Resou . . .64.0 1.0 79.0 40.5
ASOS . . . . . . . . . . . .1455.0 -20.0 2468.0 1234.0
AureIian OiI & Ga . . . .23.0 0.8 92.0 16.0
Avanti Communicat .315.0 7.3 735.0 248.5
Avocet Mining . . . . . .231.5 -0.3 286.8 177.5
BIinkx . . . . . . . . . . . . .150.3 -2.0 158.0 70.5
Borders & Souther . . .56.8 5.8 72.3 43.5
BowLeven . . . . . . . . .106.0 -1.3 398.0 74.5
Brooks MacdonaId 1280.0 2.5 1372.5 940.0
Cove Energy . . . . . . . .86.3 0.0 112.8 61.0
Daisy Group . . . . . . . .97.3 1.8 127.0 88.0
EMIS Group . . . . . . . .520.0 5.0 580.0 406.0
Encore OiI . . . . . . . . . .77.3 1.0 151.5 40.8
Faroe PetroIeum . . . .153.8 3.8 218.3 130.0
GuIfsands PetroIe . . .207.0 4.5 401.5 142.5
GWPharmaceuticaI . .98.0 0.0 130.0 87.0
H&T Group . . . . . . . . .318.0 13.0 395.0 277.0
Hamworthy . . . . . . . .636.0 36.0 705.0 373.8
Hargreaves Servic .1130.0 12.0 1180.0 685.0
HeaIthcare Locums . . . .5.2 -0.6 5.8 5.0
Immunodiagnostic . .896.0 16.0 1218.0 768.5
ImpeIIamGroup . . . .290.0 9.8 387.5 180.5
James HaIstead . . . . .465.0 2.5 495.0 350.0
KaIahari MineraIs . . .233.0 2.8 301.0 186.8
London Mining . . . . .312.0 -8.0 436.5 283.0
Lupus CapitaI . . . . . .103.0 2.0 150.0 86.0
M. P. Evans Group . .401.5 6.5 500.5 371.0
Majestic Wine . . . . . .425.0 5.5 510.0 352.0
May Gurney Integr . .287.0 -3.0 300.0 211.0
Monitise . . . . . . . . . . . .39.8 0.0 40.0 18.5
MuIberry Group . . . .1513.0 -5.0 1920.0 530.0
Nanoco Group . . . . . . .39.3 0.8 114.3 38.0
NauticaI PetroIeu . . .289.5 5.0 547.0 223.5
NichoIs . . . . . . . . . . . .536.0 11.0 579.0 410.0
Numis Corporation . . .93.0 2.0 137.8 89.0
Pan African Resou . . .14.3 0.5 14.5 9.5
Patagonia GoId . . . . . .52.3 -3.0 70.0 27.5
Prezzo . . . . . . . . . . . . .58.0 2.0 71.5 53.3
Pursuit Dynamics . . .205.8 -7.8 700.0 160.5
Rockhopper ExpIor .215.5 -3.5 386.0 141.0
RWS HoIdings . . . . . .432.0 -5.5 479.8 266.5
Songbird Estates . . .116.0 1.0 160.3 110.3
VaIiant PetroIeum . . .466.3 6.3 672.0 435.0
Young & Co's Brew . .652.5 7.5 712.0 542.5
ARM HoIdings . . . . . .645.0 7.1
Gem Diamonds Ltd. .220.0 6.9
New WorId Resource 513.0 5.8
Lancashire HoIding .740.0 4.2
SaIamander Energy .204.5 4.1
BTG . . . . . . . . . . . . . .285.4 4.1
Phoenix Group HoId .517.0 4.0
RPS Group . . . . . . . . .189.1 3.8
Ferrexpo . . . . . . . . . .316.9 3.6
BBAAviation . . . . . . .182.9 3.5
InternationaI Cons . .156.9 -6.8
Afren . . . . . . . . . . . . . .81.9 -5.9
InternationaI Pers . . .225.0 -5.7
ICAP . . . . . . . . . . . . . .350.4 -4.9
Ocado Group . . . . . . . .88.3 -4.7
Home RetaiI Group . . .91.0 -4.4
TaIvivaara Mining . . .226.9 -4.1
Thomas Cook Group .47.7 -4.0
Heritage OiI . . . . . . . .205.2 -3.6
F&C Asset Manageme 68.4 -3.5
Risers FaIIers
MAIN CHANGES UK 350
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Tsy 3.250 11 . . . . .100.10 -0.01 102.9 100.1
Tsy 9.000 12 . . . .106.40 0.00 114.2 105.8
Tsy 5.000 12 . . . .101.47 -0.03 105.8 101.3
Tsy 5.250 12 . . . .102.72 -0.03 107.2 102.7
Tsy 4.500 13 . . . .105.25 -0.02 108.5 105.2
Tsy 2.500 13 . . . .284.80 -0.01 287.7 277.6
Tsy 8.000 13 . . . . .113.91 -0.04 120.2 113.8
Tsy 5.000 14 . . . . .112.02 0.02 113.6 109.2
Tsy 4.750 15 . . . . .114.36 0.08 114.8 108.6
Tsy 8.000 15 . . . .128.04 0.05 130.5 123.7
Tsy 7.750 15 . . . .101.05 -0.16 108.5 101.0
Tsy 4.000 16 . . . . .113.14 0.14 113.4 104.9
Tsy 2.500 16 . . . .342.08 0.08 342.8 310.2
Tsy 8.750 17 . . . .140.10 0.24 141.9 132.9
Tsy 12.000 17 . . .123.00 -0.28 133.3 122.5
Tsy 1.250 17 . . . . .115.11 0.16 115.7 106.7
Tsy 5.000 18 . . . .120.65 0.33 121.2 109.7
Tsy 4.500 19 . . . . .118.33 0.33 119.2 105.4
Tsy 3.750 19 . . . . .113.00 0.36 113.9 99.4
Tsy 2.500 20 . . . .357.06 0.18 358.4 312.4
Tsy 4.750 20 . . . .120.65 0.38 121.6 106.6
Tsy 8.000 21 . . . .149.40 0.41 151.8 133.8
Tsy 1.875 22 . . . .123.89 0.01 125.4 111.3
Tsy 4.000 22 . . . . .115.05 0.42 116.2 99.0
Tsy 2.500 24 . . . .317.04 0.18 320.1 273.5
Tsy 5.000 25 . . . .126.50 0.56 128.0 107.4
Tsy 4.250 27 . . . . .117.67 0.65 118.9 97.9
Tsy 1.250 27 . . . . .118.57 0.26 121.0 104.6
Tsy 6.000 28 . . . .142.12 0.61 143.7 119.5
Tsy 4.750 30 . . . .124.89 0.74 126.1 103.0
Tsy 4.125 30 . . . .302.26 0.28 305.4 261.2
Tsy 4.250 32 . . . . .117.22 0.78 118.3 96.0
Tsy 4.250 36 . . . . .117.12 0.80 118.8 95.0
Tsy 4.750 38 . . . .126.66 0.77 128.6 102.8
Tsy 4.500 42 . . . .123.15 0.86 125.1 98.9
% %
ALTERNATIVE ENERGY
Wealth Management
32 CITYA.M. 7 NOVEMBER 2011
Lifestyle | Fashion
WOULD YOU HAVE
A MANLICURE?
IN TOMORROW’S
LIFESTYLE
33
Sing in the rain under
the sturdiest umbrella
The umbrella is the ultimate
accessory that defines the
modern gent, says Helena Lee
1
2
3
4
5
6
HOW TO GET
DRESSED
Q A
&
Clare Rous &
Kara Iland
FOUNDERS OF ROUS
ILAND MEMBERS’
BOUTIQUE
Q.
I am always cold but find
wool knits unflattering on
my petite frame. What are
the alternatives?
A.
Oversized chunky winter
knits look great on the run-
way but unless you are tall,
require stacked heels to balance your
proportions. The secret to staying
elegant (but still warm and comfort-
able) at this time of year is layering.
A long-sleeved base layer in a tight
fitting fabric with an element of
stretch will help to define your silhou-
ette. Belgian designer Anne Valerie
Hash has produced the perfect scoop
neck and roll neck tops in a super
soft yet durable machine washable
fabric. If you like the look of wool,
but not the weight, then add a deli-
cate fine knit piece. Rebecca Taylor
has some beautiful examples this
winter in intricate web-like knits.
Change the colour of your base layer
to play on the transparency of the
knit to greater or lesser effect. A
modern alternative to a wool jumper
is a shell top in a fine wool felt. This
form of wool is just as warm but the
more tightly compacted nature of the
fabric creates a contemporary struc-
tural shape for a chic alternative. We
love this season’s version by Spanish
designer Angel Schlesser. A wool or
jersey blazer as a third layer is just as
comfortable as a chunky roll neck,
but again is more closely fitted to the
body to define your waist. Laark
London is our go-to for a classic cut
in this innovative use of fabric. Keep
warm and toasty with an oversized
scarf. Even the lightest silk will trap a
layer of warm air against your body
and is an easy way to add an injec-
tion of colour to light up your com-
plexion on dark winter days.
Remember that most of your heat is
lost through your head so finish your
outfit off with this season’s wide
brimmed felt hat.
www.rousiland.com
H
OW many times have you bought a
dud umbrella? One that embarrass-
es you when it violently flips inside
out? One that can’t quite stand up
to the limp November rain, or an occa-
sional bluster on the way to work?
Well, worry no longer and consider
one of these fine specimens. These
umbrellas not only look good, but are
built to last. Jamie Milestone, design-
er and founder of London
Undercover, thinks that a well-con-
sidered umbrella is the mark of a
true City gent – perhaps the updat-
ed incarnation of John Steed. “The
umbrella is a status symbol for the
modern gentleman,” he says. “It’s
part of a certain look – the modern
British look.” If you’re willing to invest in
a well-made bag or a pair of bespoke
shoes, then care should be taken in the
choice of the umbrella as an accessory
also worth spending money on. Milestone
believes that a man who carries a quality
umbrella probably has a good attitude: “It
shows that you’re well-prepared for every-
thing.” London Underground’s City Gent
umbrella is lightweight, but sturdy, and
won’t do that flighty thing of snapping
inside out. Think of a strong, slimline
number that’s made with smooth maple-
wood and a nice curve for a handle. It’s
certainly something that you’d be happy
to be seen out and about with hanging
from your arm.
GET THE LOOK
1 James Smith, Slim-rolled
London Umbrella with Whangee
Cane Crook, www.james-smith.co.uk
2 Swaine Adeney Brigg, Golfing Umbrella,
£99, www.mrporter.com
3 London Undercover, Maharishi, DPM Bamdazzle 1,
£120, www.londonundercover.co.uk
4 Paul Smith, Multi Stripe Trim Umbrella, £65,
www.mrporter.com
5 Fred Perry, Double Sided Tartan Umbrella,
£45, www.fredperry.com
6 London Undercover, City Gent Lifesaver
Umbrella, £95,
www.londonundercover.co.uk
R
UNNING through Vancouver in
bright ski gear, carrying boots,
boards and skis is an experience in
itself. Before hitting the steep and
deep slopes of Whistler Blackcomb – British
Columbia’s powder playground – we decid-
ed to find our ski legs at Vancouver’s near-
by family resorts of Cypress, Seymour and
Grouse Mountains.
The local resorts are so close to down-
town Vancouver that at certain times of the
year, it is possible to shop in the morning,
golf in the afternoon and ski in the
evening.
As we stood waiting for the Sea Bus, a 15-
minute ferry service from Vancouver’s
Waterfront to Lonsdale Quay in North
Vancouver, we rubbed shoulders with
smartly suited businessmen chatting
urgently into their mobile phones.
Safely across the Burrard Inlet, we
stepped off the ferry and straight onto an
awaiting transfer bus that carries skiers
and boarders from the shore to the snow in
30 minutes.
We were heading to Cypress Mountain
(1,200m) – host to the freestyle skiing and
snowboarding events during Vancouver’s
2010 Winter Olympic Games.
At sea level it was raining, but at Cypress
it was snowing heavily. Just 30 minutes
from the sea, we were in a winter wonder-
land, skiing on fresh deep powder snow. I
was surprised to see such quality powder.
Who knew you could have such good snow
at this altitude and be so close to a major
sea level city?
Cypress (1,440m), Grouse (1,371m) and
Seymour (1,265m) are family-oriented
resorts offering plenty of challenging runs
for advanced skiers and less demanding
slopes for beginners and novice skiers. All
three local resorts offer fantastic day and
night skiing and are all within 30 minutes
of the City. They are perfect for finding
your ski legs before taking on the more
challenging runs further north.
AND SO TO WHISTLER AND THE SKELETON
Our next pit stop was Whistler
Blackcomb – 2,182m in altitude.
It was my first day here, but skiing was
on the back burner. The focus of the day
was plucking up the courage to try the new
Skeleton experience at Whistler’s Olympic
Sliding Centre (www.whistlerslidingcen-
tre.com).
In February 2011, the Centre launched a
new program called the Skeleton Sports
Experience, allowing members of the pub-
lic to try the skeleton on their Olympic
track.
The notorious track is the fastest of its
kind and covers 1,458m of tight curves,
banks and stretches of straight fast ice.
Professional skeleton athletes are able to
reach speeds of over 135kmph – Canada’s
Jon Montgomery, male skeleton Gold
medalist 2010, reached 144 kmph during
his winning run.
Starting a third of the way down the
track at Maple Leaf, which is just below cor-
ner 10, participants can reach speeds
between 90-100 kmph or more.
Only 800 people have tried the skeleton
since the start of the programme in
February 2011 and the end of the season in
March 2011 – all survived.
The 3.5-hour programme starts with an
introduction to the skeleton, the equip-
ment we were about to use, and how to get
down the track in one piece.
Our instructor looked at us sternly.
“Once you are on the sled, just lie there like
a sack of potatoes, do absolutely nothing,
head down, don’t look up and hold on
tight to the hand rail,” he said
clearly.
My heart was pounding and adrenalin
was pumping as I hiked to the starting
point at Maple Leaf. On the way up I had a
good look at the steep wall at corner 13
called 50/50 (50/50 chance of staying on the
sled) and Thunderbird, the last big corner
that you hurtle through before it spits you
out past the finish point and into the
uphill braking outrun.
My name was called out and I
approached the metal sled. The ice was so
slick I could barely stand. I got into position
and apprehensively looked down the track.
My face was within licking distance of the
ice.
Someone took my feet, gave me a shove
and I started to slide. The instructor yelled
out: “Hang on tight, don’t let go and enjoy
the ride.” I responded with a few choice
CONTINUED ON PAGE 36
Whistler Blackcomb and
Vancouver’s smaller resorts
provide a family-friendly paradise
for snowsports, says Lisa Young
In the snow in British Columbia
Tired after a day of museums and walking in the mag-
nificent, enormous Parc Retiro where the Madrileños
relax, talk and play, we entered the cool and peaceful
Ritz Madrid. We received a warm welcome from the
doormen who swept our bags inside and led us to the
reception. The location could not be better. Positioned
minutes by foot to the Prado, the Ritz is an icon. It was
founded 100 years ago by King Alfonso XIII, who want-
ed to build a luxury hotel to rival the Ritz in Paris. He
succeeded, and Orient Express, which now owns and
manages it, has maintained the hotel as an opulent, old-
world place worthy of the “Ritz” name.
Stepping out of reception through the circular mar-
ble, pillared foyer, we entered an elegant lounge lit by a
resplendent glass chandelier. The opulent armchairs
invited us to pause for a rest and to imagine that the
Maharaja of Kapurthaler and his wife, a Spanish dancer,
visitors to the Madrid Ritz in 1907, were joining us. Or
would it be the Emperor of Japan or Prince Ranier and
Princess Grace of Monaco, all patrons of the Ritz
Madrid?
But I digress. It was time to refresh ourselves and
change for dinner. That night we were to dine on the
terrace in the warm evening air (it was still warm in
Madrid). The menu was designed by Basque-born Jorge
Gonzalez, formerly of the Crillon in Paris, and a selection
of Spanish wines was provided by 2010 Gourmetour
Sommelier of the year, Gemma Vela.
After a glass of fizz (Cava Pares Balta Brut Nature)
we were presented with a consommé “sevigne”,
first served at the Ritz in March 1912, which
was accompanied by a dry sherry
(Olorisa Tradición 30 años vors). The
braised crayfish tails in cabbage
leaves presented to Francois
Mitterrand at a lunch at the Ritz in
1982 was now served in the tranquil
surroundings, uplifted by the piano
music softly playing. The dish was skillfully
accompanied by an Albarino do Ferriera 2010.
Next followed a hake loin in a crispy bread crust, green
pepper nectar and Iberian Vinaigrette (2010) served
with a Fuente Elvira Verdeja 2010 from Northern Spain.
The beef tenderloin “centre Perigueux” was selected
from a New Year’s Eve dinner in 1936 and for this
Gemma Vela presented us with a Conde San Cristobel
2008 also from a vineyard north of Madrid in the area
of Ribera del Duero.
We finished with crepe suzette first served in 1944,
paired with a Pacharan Baines from Navarra.
As a digestif, we sipped nothing less than
an Andalucian Brandy Carlos I. It was a
superb meal – the sommelier was
unusually charming and skilled.
We retired to our room, slept the sleep
of the sated, and woke up to a gourmet
breakfast buffet, which shone for its
selection of cold meats and fish. Well-rested
and fortified, guidebook in hand, we were ready
to take on the Prado.
Gourmet & Wine Tour from €555 per night, through
Orient Express. The Leading Hotels of the World offers
stays at Hotel Ritz Madrid from €259 per per night
based on two people sharing. www.lhw.com
DINING IN STYLE | GOURMET AND WINE AT THE RITZ MADRID BY HARRIET BUD
Lifestyle | Travel
34 CITYA.M. 31 OCTOBER 2011
when vi si tor s say
ther e’s el ect r i ci t y i n t he ai r,
it’s bec ause t her e i s.
mexi cotoday. org
l a vent osa, oaxaca
_
B
eing inside your own video-game
sounds like fun. Unless that game is
Tetris; then you’d be locked inside an
endless cycle of rotating blocks, falling
towards you at ever increasing speeds. I had a
dream about it once. The Tetris music still
brings me out in a cold sweat.
So when I was asked to star in my own
hostage rescue video game, I said “pass me my
sniper rifle. And my axe” (yes, I rescue hostages
with an axe). Chipmaker AMD organised the
event on the slightly spurious logic
that its chips allow graphics to ren-
der so seamlessly that the only way
to get closer to the action is to actu-
ally be inside a game.
I was led to a “top secret” location in
Milton Keynes, where former special
forces operatives trained me in disciplines
including sniper rifle shooting, axe throwing,
hand to hand combat and pistol drawing.
After that I was pointed in the direction of an
armoured personal carrier and told to bring
back a hostage. Preferably alive.
The rescue, which was captured by way of
GEEK SPEAK
@steve_dinneen
a helmet mounted camera, was a success –
but only because killing the actor in real life
wasn’t really an option. Otherwise they would
have been scraping her up with a spoon. Here
are some things I learned from the experience:
1) Military helmets are too big for my head.
If I end up making a career as a special forces
operative someone needs to look into this.
2) My hostage rescue tactics consist
entirely of shouting “Put it down” over and
over again, until the kidnapper eventually
capitulates, presumably out of sheer bore-
dom or some kind of hypnosis.
3) Finding a key during a hostage res-
cue situation is impossible, even when
the kidnappers are whispering “It’s on
the hook over there. No, over there. On
the hook. Right in front of you.”
Back at the briefing room I got my
hands on the video footage, which
played like a tangible anxiety dream,
CONTINUED FROM PAGE 34
words and I was off down the track. The
noise of the sled was intense as it bumped
and jolted along the ice.
I was open to the elements, hammering
down the track with no real protection and
hitting a speed of over 95kmph. I was going
so fast I could only see a white flash and a
sense of high speed as I went up numerous
banked curves.
It was exhilarating, powerful, exciting
and extremely quick – riding an out of con-
trol roller coaster might feel similar. Overall
I had the fifth fastest time out of the 20
people in the group, reaching 99.3kmph in
a time of 30.14 seconds. Not bad for a rook-
ie slider.
The following morning we met up with
British ski instructor Ollie Nixon for a tour
of Whistler Blackcomb. It was snowing
heavily, visibility was limited, but as always
the snow was great and we ploughed on
regardless.
Whistler has 8,171 acres of skiable terrain
and backcountry, the most in North
America. It also boasts spectacular snow
conditions, pristine scenery and fantastic
heli-skiing and cat-skiing opportunities.
Throughout the day we skied a lot off
piste, starting out with the Dave Murray
Downhill (not off-piste) into Tokum and
then worked our way over to Harmony
Ridge for some fun in the powder.
Lifestyle | Travel
36 CITYA.M. 31 OCTOBER 2011
WHISTLER | NEED TO KNOW
l Hotels
Stay at the five-star Fairmont Chateau
Whistler for 7 nights on a room-only basis
with prices starting from £899 per person
based on two sharing and including direct
return flights with BA from London
Heathrow to Vancouver and resort transfers.
l Skiing
Ski pack items can be pre-booked:
Six day adult ski and boot hire starts from
£82. Six day snowboard and boot hire starts
from £103. Three-day ski or snowboard
tuition (4hr/day) starts from £137. A 6 day
Whole Area Pass (covers Whistler and
Blackcomb) starts from £287.
l Best restaurants in Whistler
The Wine Room Fairmont Chateau Whistler -
www.fairmont.com/whistler/
Sushi Village – www.sushivillage.com
La Rua Restaurante – www.larua.ca
lSkiing in Vancouver
Skiing at Cyprus Mountain
www.cypressmountain.com
Skiiing at Seymour
www.mountseymour.com
Skiing at Grouse
www.grousemountain.com
In case you don’t know, Dave Murray was
one of the legendary “Crazy Canucks”
Canadian downhill ski team in the 70s and
80s. The run was named after him for the
2010 Winter Olympics.
We moved on to Low Roll and then to
Boomer Bowl, a steep off-piste powder sec-
tion, both black diamonds. We did a little
bit of Little Whistler into Glacier Bowl
accessed by T-Bars and then to Bagel Bowl,
which was fairly steep.
After a hard day on the snow we had
worked up a good appetite. We kicked off
our boots and headed straight for Sushi
Village, a spectacular and popular restau-
rant serving huge portions of delicious
Japanese food. After a few servings of sake
we retreated to the Fairmont Chateau
Hotel for a nightcap and an early night.
LEARNING WITH SUPERSTAR PETER SMART
Another early start, this time with Peter
Smart. He’s the founder of Extremely
Canadian Ski Clinics. Peter revolutionised
ski instruction when he founded the com-
pany in 1994. You may know him from
Warren Miller films or judging extreme
contests.
He’s named among the top 100 ski
instructors in North America. Apart from
being an amazing skier, Peter is an amica-
ble, friendly and funny guy. He’s encourag-
ing and can tell in an instant what you
need to do to improve your skiing skills. He
has the knack of using simple demonstra-
tions, definitions and anecdotes that are
easy to interpret.
We started with 7th Heaven chair lift
and a warm up run down Cloud 9. From
there, we headed to the Glacier Express
chair, took our skis off and hiked up 50-
metres to the entrance of Blackcomb
Glacier to Spanky’s Ladder and Diamond
Bowl. The sun was out and visibility was
unlimited: the perfect day.
Whistler Blackcomb has a total mile of
vertical between the two mountains and is
the only resort in North America where
you can ski or ride on a glacier. They’re
blessed with an average of 10-metres of
snow per year.
The glacier is amazing: skiing off the
edge of the mountain down into the bowl
with fresh powder was heavenly. The area
is wide-open, with unbelievable views,
chutes, untracked lines, cliffs and loads of
fluffy snow. If you are looking for steep
and deep, this is the place to go.
We skied down to Accelerator chair and
Jersey Cream chair and then down
Christmas Run, trying out Peter’s “hop-
ping” exercises to improve skiing balance
and to help make quicker and tighter
turns in narrow places.
If you are going to Whistler, treat your-
self to a few of days with Peter and his
team for some unbelievable skiing with
Extremely Canadian – you will not regret
it. It was our last day on Whistler and it
was an early start. At 7.00 am we were at
the bottom of Whistler Village Gondola for
an early ride up to the Roundhouse Lodge
to experience Fresh Tracks Breakfast, open
to a maximum of 650 skiers and boarders.
You head up the mountain early, eat all
you want and then have the use of certain
lifts and runs for around an hour before
the main lifts servicing the mountain
open.
Emerald Lift and Big Red Express lifts
are available to all Fresh Trackers, but
don’t ski all the way to the bottom of the
mountain, because you will not be allowed
back up before the regular opening time
without purchasing another ticket.
Breakfast was a large buffet style affair, a
bit greasy spoon, but we were not there for
the food. We were there to ski Whistler’s
fresh untouched powder before the rest of
the village got up the mountain and cut it
all up. It was great; we had the mountain to
ourselves, almost, if only for a short time.
Peter Smart is with Extremely Canadian Ski
Clinics (www.extremelycanadian.com), which
offers two days of expert “free skiing” guiding over
8000 acres of North America’s toughest terrain
with 5,000 acres of vertical.
Lisa Young travelled with Inghams, www.ing-
hams.co.uk. 020 8780 4447
Above: Whistler’s
Olympic Sliding
Center track, and
inset, Lisa Young gets
set to go.
In which I star in my very own video game
the only saving grace being that I hadn’t
stormed the vehicle completely naked.
As proof of the speed of AMD’s chips I was
handed a laptop powered by its technology to
edit and render the footage. And it’s fast.
Video rendering is usually a process several
notches duller than watching an infinite loop
of Lewis Hamilton eating a scotch egg. In the
time I have wasted staring at a screen, shed-
ding tears of pure, congealed hatred, I could
have written the great American novel. But
this was painless. To a fully signed-up Apple
fanboy, it was an unexpected reminder of why
people still grapple with Windows.
No amount of processing power, though,
could disguise the inevitable truth of the situ-
ation: I may have starred in my own video
game but, given my performance, that game
was more Kinectimals than Call of Duty.
Check out the video of my hostage rescue
at tinyurl.com/bvk6mhl
T
E
R
R
E
S
T
R
I
A
L
THE CHOIR: MILITARY WIVES
BBC2, 9PM
Gareth Malone heads to North Devon
to form his latest singing group,
consisting of the wives and girlfriends
of soldiers serving in Afghanistan.
THE JURY
ITV1, 9PM
The lives of 12 people are turned
upside down when they are summo-
ned for jury duty and find themselves
at the centre of a controversial retrial.
HIPPO: NATURE’S WILD FEAST
CHANNEL4, 9PM
Exploring the food chain in Zambia,
examining footage recorded over the
past fortnight of the various creatures
that have feasted on a dead hippo.
BBC1
SKY SPORTS 1
7pmNews at Seven 7.30pmLive
Scottish Premier League Football
10pmNetbusters 10.30pmSPL
Round-Up 11pmPremier League
Review12amSoccer AM: The
Best Bits 1amScottish Premier
League Football 2.30amSports
Unlimited 3.30amNetbusters
3.55am-6amLive Test Cricket
SKY SPORTS 2
10amLive Masters Tennis 10pm
Golfing World 11pmBoots ’n’ All
11.30pmNASCAR 12.30am
Show Jumping 1.30amWorld
Golf Championship 2.30am
Wonderful World of Golf 4am
PGA Tour Classic 5amBoots ’n’
All 5.30am-6amFIFA Futbol
Mundial
SKY SPORTS 3
7pmNASCAR 8pmTest Cricket
10pmWWE: Late Night –
Bottom Line 11pmWWE:
Afterburn 12amWWE: NXT
1amWWE Vintage Collection
2am-4.15amLive WWE: Late
Night – Raw
BRITISH EUROSPORT
6pmLive Weightlifting 7.45pm
Strongest Man 8.45pmBoxing
9.45pmEurogoals 10.45pm
World Touring Car Championship
11.45pm-12.15amEurosport
Confidential
ESPN
6.30pmTalk of the Terrace 8pm
Premiership Rugby Union 9.30pm
French Top 14 Rugby Union 10pm
Between the Lines 10.45pm
Pardon the Interruption 11.15pm
ESPN Kicks: Scottish Premier
League 11.30pmESPN Press Pass
12amLive NFL Countdown
1.30amLive NFL 4.45am-6am
Bundesliga Review Show
SKY LIVING
7pmCriminal Minds 8pm
America’s Next Top Model
9pmSigned By Katie Price 10pm
Criminal Minds 11pmBones
12amCSI: Crime Scene
Investigation 1.50amMaury
3.30amBones 4.20amNothing
to Declare 5.10am-6amJerry
Springer
BBC THREE
7pmDon’t Tell the Bride 8pm
Planet Dinosaur 8.30pmThe Real
Hustle: New Recruits 9pmThe
Growing Pains of a Teenage
Genius 10pmEastEnders
10.30pmMongrels 11.30pm
Family Guy 12.15amAmerican
Dad! 1amDon’t Tell the Bride
2amMongrels 3amThe Growing
Pains of a Teenage Genius 4am
The Real Hustle: New Recruits
4.30am-5.25amHot Like Us
E4
7pmHollyoaks 7.35pmHow I
Met Your Mother 8pmMy
Name Is Earl 9pmOne Tree
Hill 10pmMade in Chelsea
11pmThe Inbetweeners 12.05am
The Big Bang Theory 1amScrubs
1.55amHow I Met Your Mother
2.20amMy Name Is Earl 3am
Make It or Break It 3.45amRules
of Engagement 4.05am
Desperate Housewives
4.50am-6amSwitched
HISTORY
7pmHeir Hunters 8pmStorage
Wars 9pmPawn Stars 9.30pm
American Restoration 10pm
American Pickers 12amPawn
Stars 12.30amAmerican
Restoration 1amAmerican
Pickers 3amHeir Hunters 4am
American Pickers 5am-6am
Ancient Discoveries
DISCOVERY
7pmMythbusters 8pmBear
Grylls: Born Survivor 9pm
Mythbusters 10pmBattle
Machine Bros 11pmStan Lee’s
Superhumans 12amBear Grylls:
Born Survivor 1amMythbusters
2amBattle Machine Bros 3am
Deadliest Catch 3.50amPredator
X 5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmBirth Days 8pmI Didn’t
Know I Was Pregnant 9pm
Supernanny 10pmHospital
Sydney 11pmA&E 12am
Supernanny 1amHospital Sydney
2amA&E 3amI Didn’t Know I
Was Pregnant 4amA Baby Story
5am-6amBringing Home Baby
SKY1
8pmTerra Nova 9pmA League
of Their Own 10pmAn Idiot
Abroad 2 11pmBrit Cops: Law &
Disorder 12amInside Gatwick
1amRoad Wars 1.50amUK
Border Force 2.40amMental
4.20amPaul McKenna: I Can
Change Your Life 5.10am-6am
Liza and Huey’s Pet Nation
BBC2 ITV1 CHANNEL4 CHANNEL5
S
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&
C
A
B
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TVPICK
6pmBBC News 6.30pmBBC
London News 7pmThe One Show
7.30pmInside Out: BBC News 8pm
EastEnders 8.30pmWhat’s Fuelling
Your Energy Bill? – Panorama 9pm
Young Apprentice 10pmBBC News
10.25pmRegional News 10.35pm
A Question of Sport 11.05pmJohn
Bishop’s Britain 11.50pmThe
Graham Norton Show12.35am
Weatherview12.40amSign Zone:
The Great British Bake Off Revisited
1.40amSign Zone: The
Impressionists – Painting and
Revolution 2.40amSign Zone:
Nigel Slater’s Simple Cooking
3.10amSign Zone: James May’s
Things You Need to Know
3.40am-6amBBC News
6pmEggheads
6.30pmStrictly Come Dancing
– It Takes Two
7pmCelebrity Antiques Road
Trip: Last in the series.
8pmUniversity Challenge
8.30pmMasterChef: The
Professionals
9pmCHOICE The Choir:
Military Wives
10pmNever Mind the
Buzzcocks: Greg Davies hosts.
10.30pmNewsnight: Weather
11.20pmWill It Snow?
12.20amDamages
1.05amBBC News 3.45amClose
4am-6amBBC Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmCoronation Street
8pmLittle England
8.30pmCoronation Street
9pmCHOICE The Jury
10pmITV News at Ten
10.30pmLondon News
10.35pmReal Crime with Mark
Austin: The Game Show Killer
11.35pmThat Sunday Night Show
12.05amWildlife Patrol
12.30amThe Zone; ITV News
Headlines 2.35amChampions
League Weekly 3amITV
Nightscreen 4.35am-5.30amThe
Jeremy Kyle Show
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmBrave New World with
Stephen Hawking
9pmCHOICE Hippo: Nature’s
Wild Feast
10.30pmBritain’s Sex Gangs
11.35pmRory Peck Awards
11.40pmDerren Brown: The
Guilt Trip
12.40amLate Night Poker 1.35am
FILMJewel Thief: 1967. 4.40am
Home Road Movies 4.50am
Countdown 5.35am-6.05amThat
Paralympic Show
6pmHome and Away
6.25pmOK! TV
7pm5 News at 7
7.30pmLost Heroes of World
War One: 5 News Update
8pmThe Gadget Show: 5
News at 9
9pmNew Hotel Inspector
10pmBig Brother
11pmBig Brother’s Bit on the
Side
12amPolice Interceptors
12.55amSuperCasino
4.05amChinese Food in Minutes
4.10amGrey’s Anatomy 5am
County Secrets 5.10amHouse
Doctor 5.35am-6amHouse Doctor
1 2 3 4 5
6 7
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16 17 18 19
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10
21
Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUE’S
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to find as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Hurry (6)
6 Cultural (6)
8 City besieged
by Joshua (7)
9 Vulgar (6)
10 Coy, shy (7)
13 Sicken (3)
14 Female sheep (3)
17 Hold spellbound (7)
20 Short, pointed
beard (6)
21 Butchery (7)
22 UK city in which
the Met Ofce
is based (6)
23 According
with custom or
propriety (6)
DOWN
1 Headscarf worn by
Muslim women (5)
2 Chinese system of slow
meditative physical
exercise (3,3)
3 Prime minister of India
from 1947 to 1964 (5)
4 Dispenser that produces
a vapour to relieve
congestion (7)
5 Moves along quickly (5)
7 Bathroom fixture (6)
11 Attacked brutally (7)
12 Sheep’s coat (6)
15 Complain peevishly
in an annoying or
repetitive manner (6)
16 Woman’s name,
old-fashioned (5)
18 Approaches (5)
19 Suspicious, untrusting (5)
B
G
I
L
E T
N
M
R

4
4




4
C O M I C S S N U G
L A O H U
I C A B R I O L E T
M O A W R S
B O W S E R T O T E
D A B U S E H
C L E F B O N N E T
E F L E R A
A S T R O L A B E L
U O C D O
K E E N S E A S O N
8 9 9 8 1 2
9 7 2 3 8 6 1 4 5
8 4 1 5 3 2
6 1 2 9 4 8
9 5 1 5 5 3
9 5 1 4 6 7 8 3 2
6 2 1 3 9 1
6 5 3 3 2 1
7 5 9 8 9 7
2 5 9 6 8 1 4 7 3
5 7 2 7 7 6
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
EXPLOSIVE
Lifestyle | TV&Games
37 CITYA.M. 7 MOVEMBER 2011
Results
LONDON 2012 organisers today
reveal the route for next summer’s
Olympic torch relay, which will cul-
minate in a comprehensive seven-
day tour of the capital’s 32 boroughs
and the City.
The flame will be transported on
horseback, bicycle, tram and steam-
train during a 70-day route through
every corner of the British Isles,
from the Shetlands to the Channel
Islands and most places in between.
Famous landmarks such as
Stonehenge, Mount Snowdon and
Loch Ness will provide the backdrop
to stages of the relay, which begins in
May and ends in July, when the
flame will arrive at the Olympic Park
in Stratford.
The final week will see the torch
visit every single London borough
and the City, before being transport-
ed down the Thames to the East End
for the Games’ opening ceremony on
27 July.
Details of the streets through
which the flame will pass have yet to
be finalised but are expected to be
confirmed early next year.
It will be lit in Olympia, Greece, in
May before being flown to England,
where 8,000 volunteers will carry
the flame on its 8,000-mile trek.
Organisers say the torch will pass
within 10 miles of more than 95 per
cent of the population.
The national tour will begin in
Land’s End, Cornwall on 19 May and
take in every single county in
England and all local authority areas
in Scotland, Northern Ireland and
Wales.
Nominations for torchbearers
have closed and the first names will
be confirmed in February.
For full details of the route and an inter-
active map see www.london2012.com
BY FRANK DALLERES
OLYMPICS

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email sport@cityam.com
Sport 38 CITYA.M. 7 NOVEMBER 2011
SPORT | IN BRIEF
Raikkonen in comeback talks
FORMULA ONE: Former world champion
Kimi Raikkonen is in talks with Williams
about making a comeback to Formula
One next season. Williams investor Toto
Wolff said: “The story is not for show, we
are negotiating seriously, but he is only
one of several options.” Raikkonen quit
Formula One for the World Rally circuit
in 2009.
Hoy claims track gold for Britain
CYCLING: Britain’s Sir Chris Hoy won
gold in the men’s sprint at the first leg of
the World Track Championships in
Astana, Kazakhstan. The four-time
Olympic champion beat Russia’s Denis
Dmitriev 2-0 in the final. Team-mate Dani
King took silver in the women’s omnium.
Goldikova to retire ‘a great’
HORSE RACING: Three-time Breeders
Cup Mile winner Goldikova will retire as
one of the greats despite failing to win
the race a record fourth time, says train-
er Freddie Head. The six-year-old was
beaten into third place at Churchill
Downs by outsider Court Vision and
Turallure. But Head said: “I think she has
earned her place as one of the great
horses of the last century.”
Brit Anne wins successive titles
TENNIS: Britain’s Anne Keothavong
claimed her second title in as many
weeks with victory over Austria’s Yvonne
Meusberger in Ismaning, Germany. It fol-
lows her win at another ITF event in
Barnstaple and means she ends the sea-
son on a high. Elsewhere former world
No1 Roger Federer won his first ATP title
for 10 months at the Swiss Indoors
event.
Champ Stoner wins in Valencia
MOTO GP: World champion Casey Stoner
capped a successful season by winning
the final race in Valencia, as riders paid
tribute to the late Marco Simoncelli.
Competitors from all three classes
remembered Simoncelli, who died last
month at the Malaysian GP, before the
race, which Stoner won by overtaking
Ben Spies on the final corner.
WOLVES ended a run of eight games
without victory with a win over fel-
low strugglers Wigan. Jamie O’Hara
slotted home a Kevin Doyle cross for
the opener, but Ben Watson levelled
for Wigan, after Wayne Hennessey
saved his initial penalty.
Second half goals from David
Edwards and Stephen Ward sealed
the win, while Wigan’s Antolin
Alcaraz could be in hot water after
appearing to spit at Christophe Berra.
BOLTON moved to within a point of
safety and gained revenge for last sea-
son’s FA Cup semi-final defeat by rout-
ing Stoke to complete their first home
win of the campaign.
Kevin Davies and Chris Eagles had
the home side two ahead at the break,
and in the second half another from
Eagles was sandwich by an Ivan
Klasnic brace.
Wolves win six-pointer
FOOTBALL

3
1
WOLVES
WIGAN
Bolton end home slump
FOOTBALL

5
0
BOLTON
STOKE
Olympic torch:
London route
is revealed
21 JULY 2012
1 Greenwich
2 Newham
3 Tower Hamlets
4 Hackney
5 Waltham Forest
22 JULY 2012
6Redbridge
7 Barking
8 Havering
9Bexley
23 JULY2012
10Lewisham
11 Bromley
12 Croydon
13 Sutton
14 Merton
15 Wandsworth
24 JULY 2012
16Kingston
17 Richmond
18 Hounslow
19Hillingdon
20Ealing
25 JULY 2012
21 Harrow
22 Brent
23 Barnet
24 Enfield
25 Haringey
26 JULY 2012
26Camden
27 Islington
28 City
29Southwark
30Lambeth
31 Kensington
32 Hammersmith
33 Westminster
27 JULY 2012
34 Journey down
the Thames and
ending up at the
Olympic Stadium
in Stratford
Sport
39 CITYA.M. 7 NOVEMBER 2011
SARACENS boss Mark McCall predict-
ed a much-improved European cam-
paign after seeing his side close to
within four points of Premiership
leaders Harlequins with a seventh
successive league win.
Tries from England pair David
Strettle and Matt Stevens and the reli-
able boot of young fly-half Owen
Farrell eased Sarries to a clinical victo-
ry blighted only slightly by two late,
unconverted Sale tries.
It means the domestic champions
go into the weekend’s first Heineken
Cup fixtures on a roll and fuels direc-
tor of rugby McCall’s belief they can
improve on last season’s disappoint-
ing showing in the competition.
“We learned lessons very quickly
during last season’s Heineken Cup
and, hopefully we haven’t got the
same failings we had back then,” he
said.
“I believe we are capable of having
a good impact on the Heineken Cup
and that we have the strength and
quality within the squad to take
advantage of last season’s experi-
ences. We open our Heineken pro-
gramme at home to Benetton Treviso
next Sunday and there is always a
sense of anticipation when this com-
petition comes around.”
McCall singled out former England
captain Steve Borthwick for praise
and predicted the lock would spear-
head the club’s renewed assault on
Europe.
“I believe Steve’s form is the best he
has enjoyed in the past two and a half
years,” McCall added. “His impact on
and off the field, his leadership and
his form as a lock forward are all
magnificent. Against Sale he was a
big factor in our success against their
lineout and in Europe we could not
be led by a better skipper.”
Europe next target
for seven-up Sarries
THERE’S RUGBY
THEN THERE’S BARBARIANS RUGBY
DON’T MISS THE ONLY TWICKENHAM INTERNATIONAL THIS AUTUMN
BARBARIANS V AUSTRALIA
TWICKENHAM SATURDAY 26
th
NOVEMBER 2011 KO: 2.30
Barbarians squad includes: Sonny Bill Williams (NZ), Keven Mealamu (NZ), Stirling Mortlock (Aus), Jamie Roberts (Wal), Ryan Jones (Wal),
Stephen Jones (Wal), Danny Cipriani (Eng), Bryan Habana (SA), Victor Matfield (SA), Bakkies Botha (SA) plus other international players to be announced.
ADULTS from £35
KIDS ONLY £15
www.killik.com
tickets from
TICKETMASTER.CO.UK
0844 847 2492
in association with
BY FRANK DALLERES
RUGBY UNION

23
10
SARACENS
SALE
PARTY POOPERS | Saints ruin Edwards’ day
WASPS slipped to a 24-13 defeat at home to Northampton in coach Shaun Edwards’ last
match with the London club. Saints props Brian Mujati (above) and Soane Tonga’uiha
scored the tries and Ryan Lamb kicked 14 points to lift the visitors to sixth in the
Premiership. Riki Flutey and Ross Filipo went over for Wasps, who are eighth in the
table. Edwards has been linked with an England role. Picture: GETTY
RACE row caddie Steve Williams has
escaped sanction for his remarks
about former world No1 Tiger
Woods, despite world golf
chiefs calling them
“entirely unacceptable
in whatever context”.
New Zealander
Williams (inset),
sacked by Woods in
July after 13 years, told
a caddies’ awards din-
ner on Friday that he rel-
ished his new employer
Adam Scott’s victory over
the American in August because
he wanted “to shove it right up that
black a***hole”.
The two heads of the world’s pre-
mier tours, the European Tour’s
George O’Grady and Tim Finchem of
the PGA, yesterday joined worldwide
condemnation of the comments but
said they regarded the matter closed
following an apology from Williams.
“The International Federation of
PGA Tours feels strongly there is no
place for any form of racism in ours
or any other sport,” they said in
a joint statement. “We con-
sider the remarks of Steve
Williams, as reported,
entirely unacceptable
in whatever context.
We are aware that he
has apologised fully
and we trust we will
not hear such remarks
again. Based on this, we
consider the matter
closed, and we will have no
further comment.”
The statement is unlikely to placate
anti-racism groups, who have called
for Williams to be investigated.
Scott confirmed he would retain
Williams for this week’s Australia
Open, where, as fate would have it,
they will cross paths with Woods.
FORMER world No1 Martin Kaymer
has not given up hope of denying
England’s Luke Donald a PGA and
European Tour double after storming
to victory in the WGC-HSBC
Championship in Shanghai.
Kaymer’s birdie-strewn back nine
earned him a 10th European Tour tri-
umph and lifted him to second in the
circuit’s money list, which PGA Tour
winner Donald currently heads with
just a handful of events remaining.
But the German, 26, admits
Donald’s lead of almost £900,000 in
the Race to Dubai may prove too
great, despite a return to form that
saw him overhaul a five-shot
overnight deficit to win by three.
“He deserves to be No1 in Europe,”
Kaymer said of Donald. “It will be dif-
ficult [to catch him], but that is what
the sport is about, to challenge your-
self, challenge the other players that
you play with week in, week out, and
of course I’ll try.”
Kaymer’s nine birdies in the final
12 holes left him on 20 under par,
beating Sweden’s Freddie Jacobson.
Race row caddie in
clear as chiefs say
Woods case closed
Resurgent Kaymer out to
scupper Donald’s double
GOLF

BY FRANK DALLERES
GOLF

TOTTENHAM manager Harry
Redknapp revealed his recovery from
minor heart surgery could keep him
out of action for up to five weeks but
his side prospered in his absence
yesterday, producing a spirited
rearguard action to emerge
from Craven Cottage with
three points.
A seventh win in eight
games looked likely to
prove a formality at half-
time with the visitors two
goals ahead thanks to their
wingers Gareth Bale and
Aaron Lennon.
But a spirited Fulham come-
back yielded an own goal from Younes
Kaboul and Spurs were indebted to
goalkeeper Brad Friedel, who pre-
served their lead on numerous occa-
sions, before Jermaine Defoe’s
deflected volley sealed matters with
the last kick of the game.
Redknapp, meanwhile, had hoped
to be back on the training pitch with-
in two weeks of having been dis-
charged from hospital last Thursday.
The 64-year-old watched yesterday’s
events unfold from his Dorset home,
rather than the stands as he had orig-
inally intended, and admitted there
was no chance of him returning to
work before the end of the interna-
tional break.
He said: “Doctors recommend I
shouldn’t even think about football
for four or five weeks – but I’ll see how
I go. I’m hoping to be back before
then.”
In Redknapp’s absence first team
affairs will be handled by his assis-
tants Joe Jordan, Kevin Bond
and Clive Allen, and the for-
mer admitted the tense
nature of yesterday’s win
would have done little to
improve his boss’s health.
He said: “The last 30
minutes may have been a
bit of a tester for him. But
if he passes that, which I’m
sure he will, hopefully he will
be back a bit earlier.”
Defeat, meanwhile was harsh on
Fulham, who peppered Friedel’s goal
after the break and were denied a
penalty in injury-time when Kyle
Walker handled.
Manager Martin Jol said: “Today we
had 28 attempts on goal. They had
seven and scored three goals. I felt we
really deserved a point. We are in a
false position.”
BY JAMES GOLDMAN AT CRAVEN COTTAGE
FOOTBALL

1
3
FULHAM
TOTTENHAM
Rodwell and Sturridge given
England chance by Capello
CHELSEA striker Daniel Sturridge and
Everton midfielder Jack Rodwell have
been handed their first senior
England call-ups ahead of the upcom-
ing friendlies against Spain and
Sweden.
The pair have graduated from
Stuart Pearce’s Under-21 squad after
enjoying impressive starts to the sea-
son for their clubs.
As expected, skipper John Terry has
been included despite being the sub-
ject of Football Association and
Metropolitan Police investigations
over an alleged racist remark.
Former skipper Rio Ferdinand has
again been left out, while his
Manchester United team-mate Wayne
Rooney, who will miss the start of
Euro 2012 through suspension, has
also been omitted.
Liverpool’s Glen Johnson returns to
the squad after injury, which means
no place for Micah Richards, despite
his excellent form for Manchester
City. Richards, who captained his side
to a 3-2 win over QPR on Saturday,
wrote on Twitter: “Well well well!!!!
Disappointed is an understatement!!”
THE FORMER anti-corruption chief of
the International Cricket Council
(ICC) has called on the world govern-
ing body to consider banning
Pakistan over the spot-fixing scandal.
Lord Condon urged the ICC to
prove its credibility by imposing the
toughest sanctions possible for coun-
tries who do not do enough to pre-
vent corruption in their teams.
“This is another big wake-up call
for cricket,” said former Met Police
commissioner Condon. “The ICC has
to get tougher. It has to be prepared to
give the harshest sentences it can –
not just to cricketers but boards as
well. If a board is not doing enough to
prevent corruption they should also
suffer consequences and the nuclear
option is teams would sadly have to
be excluded from world cricket if they
are not getting their act together.”
The comments follow last week’s
jailing of Pakistan trio Salman Butt,
Mohammad Asif and Mohammad
Amir after they were found guilty of
conspiracy to cheat and conspiracy to
accept corrupt payments. The charges
relate to their deliberate bowling of
no-balls during a Test match against
England at Lord’s last year.
Former captain Butt was sentenced
to 30 months, Asif for 12 months and
Amir for six months.
CRICKET

Ban countries over fixing,
urges ex-corruption chief
Gutsy Spurs
provide Harry
with perfect
get well gift
Sport
40 CITYA.M. 7 NOVEMBER 2011
BY JAMES GOLDMAN
FOOTBALL

Goalkeepers: Joe Hart, Scott Carson,
David Stockdale. Defenders: Glen
Johnson, Phil Jones, Gary Cahill, John
Terry, Ashley Cole, Leighton Baines, Phil
Jagielka, Joleon Lescott, Kyle Walker.
Midfielders: Frank Lampard, Jack
Rodwell, Stewart Downing, Gareth Barry,
Adam Johnson, James Milner, Scott
Parker, Theo Walcott. Strikers: Darren
Bent, Daniel Sturridge, Gabriel Agbonlahor,
Bobby Zamora, Danny Welbeck.
ENGLAND SQUAD | V SPAIN AND SWEDEN
Bale put Spurs
ahead in the 10th
minute
Picture: ACTION
IMAGES
OLYMPIC TORCH
ROUTE REVEALED
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