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Bring back
Olympus
CEO: funds
BAILLIE Gifford, the Edinburgh-based
fund manager, yesterday called for
the reinstatement of Michael
Woodford as president and CEO of
Olympus nearly a month after he was
fired from the group after question-
ing controversial payments.
Baillie Giffords investment manag-
er Iain Campbell says the groups cur-
rent management is now discredited.
Baillie Gifford holds about four per
cent of Olympus shares.
We need a new man at the helm
(Woodford) and more effective board
oversight, with a majority of inde-
pendent directors, said Campbell last
night.
Speaking to City A.M. yesterday,
Woodford, pictured below, said that
ultimately it would be up to Japanese
shareholders, who hold the majority
of the shares, to decide whether he
returned to the company. If they
decided not to have me back because I
have exposed wrongdoing, then so be
it, he said.
Campbell said Woodford had no
option but to speak out about the
questionable payments. Hes made
important disclosures.
Woodford is demanding a forensic
investigation into the more than
$1bn in acquisition-related payments,
plus more resignations from the
board. He says he was first alerted to
the payments by the July publication
of a Japanese magazine. Meanwhile
the largest foreign investor in the
camera to medical devices
group, Southeastern
Asset Management,
has also demanded
the resignation of the
companys entire
board and urged
Japanese authorities to
resist any tempta-
tion to draw
a line under
an embar-
r a s s i n g
scandal by
del i st i ng
the busi-
ness.
BY DAVID HELLIER
TECHNOLOGY

ENDGAME
www.cityam.com Issue 1,508 Thursday 10 November 2011 FREE
BUSINESS WITH PERSONALITY
Certified Distribution
29/08/11 till 02/10/11 is 98,447
Italian yields shoot
past 7% mark as Romes
solvency under threat
ANALYSIS l Italian yields shot up to over 7%
JUN JUL
7.5
7
6.5
6
5.5
5
AUG SEP OCT NOV
ANALYSIS l VIX: Market volatility continued
DEC FEB
50
40
30
20
2011 MAR APR MAY JUN JUL AUG NOV SEP OCT
Investors in US take
fright over talk of
Eurozone break-up
Fear stalks US market
with volatility gauge
surging by 31.6%
Stock markets fell dramatically as Italys debt crisis reached new depths Picture: REUTERS
THE CLOCK is ticking for the
European Central Bank (ECB) and
international community to step in
to save Italy, economists warned as
the countrys borrowing costs shot
through the roof yesterday.
Stocks across the world fell as the
crisis escalated, with the Dow plum-
meting 3.2 per cent, the DAX falling
2.21 per cent. and VIX, a measure of
volatility in the US, up 31.6 per cent.
Yields on 10-year Italian bonds
spiked through the seven per cent
mark, peaking at 7.48 per cent.
Once yields on Portuguese and Irish
debt reached such levels those coun-
tries became locked out of markets
and had to seek bailouts.
Much of the alarm was driven by
clearing house LCH.Clearnet SAs
BY TIM WALLACE
EUROZONE

decision to raise the margin call


paid by buyers of Italian debt by five
percentage points to 11.65 per cent,
reflecting increased risk of holding
the bonds. With the ECB suspected
to have intervened later in the day,
yields fell back to 7.21 per cent.
Meanwhile, Greek politicians
failed to reach a deal on who will be
the countrys next Prime Minister.
French and German leaders are
believed to be discussing the poten-
tial for a more integrated core
Eurozone, while reports in
Germany suggest that Angela
Merkels party is investigating ways
in which countries could leave the
single currency.
Commenting on more immedi-
ate responses, Investecs Philip Shaw
said: We need a global solution,
which means countries which can
should increase contributions to
the International Monetary Fund.
That may be politically unpalat-
able China will demand increased
voting rights, which Europe and the
US will not like but domestic polit-
ical objections tend to fall away
when economic Armageddon is just
around the corner.
Other economists pointed to
potential solutions within the EU.
The next really big Italian debt
maturity comes in February and
the politicians know the conse-
quences of a disorderly default if
they do not take action by then,
said Capital Economics Ben May.
The ECB does not want to
finance governments, saying that is
not its job but if nobody else will,
the ECB may have to.
Credit default swaps on five-year
Italian debt shot up 9.37 per cent
yesterday on fears the government
will not be able to pay its debts.
MORE: P2-3, P21
ANALYSIS l Dow Jones closes down 3.2%
3.00 4.00 5.00 6.00 7.00 8pm
12,250.00
12,000.00
11,750.00
Rate necessary for interest payments to
reach 20% of govt revenues in 2015
Japan Greece Ireland US Italy Portugal UK Spain Belgium France Germany
14
12
10
8
6
4
2
$
10year government bondyield- percent
Greece
2010 2011
2
4
6
8
10
12
14
Ireland
Portugal
Italy
News
2 CITYA.M. 10 NOVEMBER 2011
GREECE was left without a govern-
ment for a fourth day running last
night after squabbling politicians
failed to announce a successor to fill
the vacuum left by Prime Minister
George Papandreou, who resigned yes-
terday.
The failure of the countrys political
elite to strike an agreement leaves two
of the Eurozones crisis-hit countries
without governments, as Italys MPs
engaged in similarly unproductive
horse-trading.
Without a new government, Greece
will run out of money in the next
three weeks if its international credi-
tors stick to promises not to pay out its
next 8bn (6.8bn) instalment of
bailout cash. Papandreou announced
to the nation that he was leaving
office to hand over to a coalition gov-
ernment that would unite to imple-
ment the austerity measures that are a
condition of Greeces rescue package.
Papandreou said: Today, despite
our differences -- political and social
differences do exist -- we have put aside
our fruitless conflict and disagree-
ment.
But hours after he had departed, no
new prime minister had been named.
Reports suggested that Lucas
Papademos, a former ECB economist,
had struck a deal with Papandreou to
take over so long as the two main par-
ties signed up to bailout conditions.
But others claimed the two main
parties had agreed on house speaker
Karolos Papoulias.
Talks between the main socialist
PASOK party and opposition conserva-
tive New Democracy party to install
Papoulias broke down, however.
Negotiations are due to reconvene
this morning for a fourth day. The par-
ties have at least agreed that elections
will be held on 19 February.
Greece left headless
as politicians fight
BY JULIET SAMUEL
EUROZONE

GERMAN and French officials have dis-


cussed the formation of a more tightly
integrated core Eurozone, while sepa-
rate reports from Germany reveal that
Angela Merkels party is investigating
ways of some countries leaving the sin-
gle currency while staying in the
European Union.
Merkels Christian Democratic
Union will publish a paper today on
how Eurozone members might accom-
plish an orderly withdrawal, accord-
ing to the German newspaper
Handelsblatt.
And yesterday French Prime
Minister Nicolas Sarkozy said a two
speed Europe was a model for the
future. Separately, a senior EU official
told Reuters that changing the make-
up of the Eurozone has been discussed
on an intellectual level.
Meanwhile, nervous investors
turned their attention to France, as
the spread between its bonds and
German bunds hit a worrying record
high of 147 basis points (bps).
The spread signals the degree to
which German state debt is seen as
safer than that of French debt.
The gap is partly due to German
debts status as a safe haven, as other
Eurozone governments wobble. Yet
the Bank for International Settlements
has reported the French banking sec-
tors exposure to Italian, Spanish and
Greek debt at over 600bn (511bn).
The contagion to core countries is
already visible in France, said Aegon
Asset Managements Gerard Moerman.
BY JULIAN HARRIS
EUROZONE

IN a rational market, risk as well as


return is at the forefront of investors
minds. They demand a high rate of
interest to lend to risky companies,
individuals or countries and a low
one to invest in safe havens.
The problem during bubbles is that
investors drunk on excessive liquidity
and who thus suddenly have more
money than sense or profitable
opportunities at their disposal stop
making such judgments. They start to
act as if all assets are equally riskless.
The once massive gulf between yields
on junk bonds and those on safe
investments shrank to ridiculously
low levels as the bubble blew out of
control five years ago.
The race for yield was predicated
on the faulty assumption that overall
risk had diminished permanently, as
a result of globalisation, financial
innovation and low inflation. The col-
lapse in the real cost of borrowing
was seen as proof of progress, rather
that the manifestation of the mother
of all bubbles in the bond markets
(caused in the first instance by central
banks encouragement of excessive
liquidity, combined with govern-
ment-created moral hazard).
Dodgy, over-leveraged deals could
raise funds on great terms as, infa-
mously, could sub-prime borrowers.
The Eurozone was affected by this
global bubble, of course, but the
launch of the euro and the accompa-
nying propaganda from the political
establishment triggered an even
more disastrous mispricing of risk
across the continent. Prior to the sin-
gle currencys launch, it (very sensi-
bly) cost far more for risky countries
such as Italy or Spain to borrow than
it did for Germany.
But following the launch of the sin-
gle currency, all government-debt
became denominated in euros and
EDITORS LETTER
ALLISTER HEATH
4th Floor, 33 Queen Street, London, EC4R 1BR
Tel: 020 3201 8900 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Jo Simpson
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
Distribution helpline
If you have any comments about the distribution
of City A.M. Please ring 0207 015 1230, or email
distribution@cityam.com
slowly everybody started to treat it as
pretty much alike. After all, there was
already a one-size-fits all official base
rate fixed by the European Central
Bank why not the same with govern-
ment bonds? The fact that this was a
monetary union, not a fiscal union,
was forgotten; despite obvious viola-
tions, many chose to believe the
European treaties rules on fiscal pru-
dence. They also convinced them-
selves that countries would be bailed
out in extremis to preserve the euro,
with the funds presumably magicked
out of thin air.
What this meant was that misman-
aged countries such as Greece were
able to free ride on the credibility of
countries such as Germany when it
came to bond yields. The weak
nations cost of borrowing collapsed,
delivering what many supporters of
the euro wrongly saw as a permanent
free lunch. This had a huge effect on
the likes of Spain, pushing down
mortgage rates and triggering a mas-
sive house price bubble. In reality, the
creation of the single currency meant
that nations were more likely to go
bust (and were thus riskier) because
they no longer controlled their own
currency. There used only to be an
inflation and devaluation risk; now
there is also an actual default risk. Yet
instead of going up, the cost of bor-
rowing collapsed.
The best way to understand the cur-
rent increase in Italian, Spanish and
increasingly French yields is that risk
is finally starting to be priced ration-
ally again markets now realise that
some countries are more likely to
default or quit the euro than others.
Default doesnt necessitate real insol-
vency: Italy is a rich country with lots
of assets. Yet a country can go bust if
its political system is broken or its
electorate wedded to silly policies.
But this increased realism is
already turning into panic. Investors
are beginning to comprehend that
debt levels in several countries are
simply not affordable at proper inter-
est rates. As the penny drops, it will
become ever more obvious that the
euros launch was one of the greatest
political and economic blunders of
modern times.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
The penny drops
at last in Europe
Printed by Newsfax International,
Beam Reach 5 Business Park,
Marsh Way, Rainham, Essex, RM13 8RS
SMALL BUSINESSES NEED HELP TO
EXPORT, SAY MINISTERS
Banks and corporate advisers must do
more to encourage small companies
to break into export markets, the gov-
ernment will say today. Ministers will
tell a conference of advisers in
London that they have a key role in
boosting the relatively low number of
smaller British companies that do
business overseas.
WHAT THE OTHER PAPERS
SAY THIS MORNING
ROTHSCHILD CALLS FOR CLEAN-UP AT
PT BUMI
Nat Rothschild has criticised the man-
agement and corporate governance at
the Indonesian coal company he is try-
ing to transform into a top-tier global
miner. In a letter seen by the Financial
Times, Mr Rothschild called for a rad-
ical cleaning up of PT Bumi
Resources, the Jakarta affiliate of
London-listed Bumi.
ITALY HEADS THE SAME WAY AS GREECE,
Life after the Eurozone planned for
peripheral states facing possible exit
GREECE ASKS FOR
EU / IMF AID AFTER
YIELDS HIT 8.6%
FEARS ITALY WILL
NEED A BAILOUT
AS YIELDS CRASH
THROUGH 7%
EU BACKS
IRISH
BAILOUT
AFTER YIELDS
HIT 7.9% PORTUGAL
SEEKS AID
AFTER YIELDS
HIT 8.6%
Faces of the crisis: (L-R) Ex-Greek Prime Minister George Papandreou,
former Irish Taoiseach Brian Cowen, ex-Portuguese Prime Minister
Jos Scrates and outgoing Italian PM Silvio Berlusconi
ANALYSIS l Portugal
April 2009 April 2010 April 2011
11
10
9
8
7
6
5
4
3
S
o
u
r
c
e
:
T
h
o
m
s
o
n

R
e
u
t
e
r
s

D
a
t
a
s
t
r
e
a
m
THE EUROPEAN Central Banks (ECB)
second covered bond purchase pro-
gramme is underway, with Banque de
France making an order in the taps of
Credit Mutuel Arkeas outstanding
French Obligations LHabitat, accord-
ing to a syndicate banker.
CM Arkea opened books yesterday
morning, tapping a 1.25bn 2.5 per
cent June 2015 issue at mid-swaps plus
100 basis points.
A syndicate official said they had
been in contact with Banque de
France and were certain that the
French central bank would partake in
the two taps.
THE EUROZONE debt crisis risks
plunging the global economy into a
Japan-style lost decade, the head of
the International Monetary Fund
(IMF) warned yesterday.
If we do not act boldly and if we do
not act together, the economy around
the world runs the risk of downward
spiral of uncertainty, financial insta-
bility and potential collapse of global
demand, Christine Lagarde said.
Lagarde said she was hopeful the
technical details on boosting the
European Financial Stability Fund
(EFSF) to around 1 trillion would be
ready by December.
World faces risk
of a lost decade
French bank
taps ECB funds
EUROZONE

EUROZONE

News
3 CITYA.M. 10 NOVEMBER 2011
IRELAND AND PORTUGAL
LEGISLATORS in Alabamas Jefferson
County yesterday voted 4 to 1 to file for
bankruptcy court protection in what
would be the biggest municipal bank-
ruptcy in US history.
Despite a tentative deal with credi-
tors reached in September to settle
$3.14bn (1.97bn) of debt, county com-
missioners this week resurrected the
threat of a Chapter 9 bankruptcy filing
because the estimated savings from
the agreement had shrunk by about
$14m. The filing could add to concerns
in the $3.7 trillion US municipal bond
market, which has recently been hit
hard by the debt crisis in
Pennsylvanian capital Harrisburg.
Creditors reached a tentative deal
with the county in September calling
for Jefferson Countys sewer-system
debt to be substantially reduced, but
final terms were not reached.
Since 2008 Jefferson County has
teetered on the edge of a bankruptcy
that would surpass that filed by
Orange County, California, in 1994.
Jefferson Countys debt escalated in
the mid-2000s as it sought to refinance
an upgrade of its sewer system. Should
Jefferson file Chapter 9 bankruptcy, at
over $5bn for the countys total indebt-
edness, it will be the largest municipal
filing in US history.
BY HARRY BANKS
DEBT CRISIS

Alarm hits US as county


seeks $5bn bankruptcy
ANALYSIS l Greece
April 2008 April 2009 April 2010
11
10
9
8
7
6
5
4
3
S
o
u
r
c
e
:
T
h
o
m
s
o
n

R
e
u
t
e
r
s

D
a
t
a
s
t
r
e
a
m
ANALYSIS l Ireland
April 2009 April 2010 April 2011
11
10
9
8
7
6
5
4
3
S
o
u
r
c
e
:
T
h
o
m
s
o
n

R
e
u
t
e
r
s

D
a
t
a
s
t
r
e
a
m
WHAT IS ITALYS PROBLEM?
Q.
WHY DO HIGH YIELDS ON
ITALYS DEBT MATTER?
A.
A large proportion of Italian
GDP is spent on debt interest.
Earlier this year the European
Commission forecast Italys budget
would be in what economists call a
primary surplus to the tune of 0.75
per cent of GDP. However, once inter-
est payments are added, this falls to
a deficit of four per cent. High rates
mean those interest payments go up
when Italy borrows more or rolls
over old debts. Capital Economics
estimates that the current high
rates will cost Italy an extra 60bn
(51.1bn) by 2015. IMF simulations
suggest that rates of over eight per
cent will take Italys interest service
costs to 20 per cent of GDP by 2015.
Q.
WHAT CAN ITALY DO ABOUT ITS
DEBTS?
A.
Italy has a long term problem
and needs more economic
growth and a bigger primary sur-
plus if it is to turn its finances
around. One reason markets wanted
rid of Berlusconi was because they
did not believe he could deliver the
necessary changes in areas like pen-
sions and labour market reform.
Q.
WILL INTEREST RATES KEEP
GOING UP FOR ITALY?
A.
Berlusconi says he will resign
after finance reforms are
passed, but analysts are sceptical
that the next government will do
better. Next week sees a three-year
bond auction, and the government
may seek outside help
instead of paying seven
per cent or more. If rates
do keep rising, Italy will be locked
out of bond markets, alongside
Greece, Portugal and Ireland.
Q.
WHAT HAPPENS IF ITALY CAN-
NOT PAY ITS DEBTS?
A.
Italy might call on outsiders for
help. However, the ECB is con-
strained by treaties in how it buys
government debt; the EFSF may not
be big enough to help, and would be
weakened in any case as Italy is
meant to be a contributor to the
fund; and asking the IMF for help
brings a range of political problems
around which countries could or
would actually put more money in.
Q A
&
GREEK, IRISH AND PORTUGUESE 10 YEAR BOND YIELDS ALL ACCELERATED
HIGHER SHORTLY AFTER CROSSING 6%
POLICE arrested 24 people yesterday as
thousands of tuition fee protesters
marched through London, but
attempts to set up a new tent city
were quickly foiled.
Widespread violence failed to
materialise after the Met swamped
the capital with 4,000 officers.
Activists were held on suspicion of
offences including violent disorder,
affray and breach of the peace after a
group split off from the main march
from Bloomsbury to the City.
Many of the arrests came when the
breakaway group pitched more than
20 pop-up tents at the base of Nelsons
column in Trafalgar Square. Police
quickly cleared the tents, however, in
order to prevent them setting up a
camp similar to that at St Pauls.
The protest was organised by the
National Campaign Against Fees and
Cuts over tuition fee rises and the
coalitions privatisation of higher
education. Campaign leader Michael
Chessum said: We are being told by a
cabinet of millionaires that we will
have to pay triple tuition fees.
Minor scuffles broke out as police
carrying riot helmets funnelled pro-
testers on the main march through
the streets towards their rallying point
at London Wall.
Protesters echoed the slogans of
Occupy LSX and carried banners such
as Education for the 99 per cent.
Electricians and taxi drivers also
staged protests in the run-up to a
nationwide one-day strike by public
sector workers on 30 November.
Last night, however, the Met said
the day appeared to have passed with-
out any major incidents. Initial esti-
mates put the turnout for the main
march below the 10,000 expected.
The Met, which was criticised for its
response to the summer riots and fren-
zied violence by anti-tuition fees pro-
testers last year, took a tougher line in
the run-up to yesterdays event. It
closed roads, deployed helicopters,
called in help from other forces and
threatened the use of rubber bullets.
Police crush new tent city
PRIME Minister David Cameron said
he would not allow RBS to pay out
500m in bonuses which the bank
never intended to do.
He was asked in parliament by
Labour MP Lindsay Roy whether it is
right and proper and in any way
defensible that the 83 per cent
state-owned bank would shell out
half a billion for bonus rewards.
He said: I dont think it is accept-
able. It hasnt yet set its figures for
bonus payments The British gov-
ernment is a seriously large share-
holder in RBS and we will be
making our views known.
However, RBS has no plans for a
500m bonus pot. It has set aside
527m for total pay in the third
quarter including wages, benefits
and pensions for all staff at its
investment bank.
It also plans to lay off thousands
of investment bankers as part of a
strategic review that could see the
division shrink by a third.
The drastic action is necessary
after the divisions cost-to-income
ratio rose to a stunning 93 per cent,
meaning it is spending 93 pence of
every pound it earns. The cost of
paying its staff accounts for nearly
half of its revenues.
Cameron: Ill
crack down on
RBS bonuses
BY PETER EDWARDS
POLITICS

BY JULIET SAMUEL
BANKING

News
4 CITYA.M. 10 NOVEMBER 2011
One protester in Blackfriars finds he can go no further as police keep yesterdays tuition fee march under control Picture: Laura Lean/CITY A.M.
News
5 CITYA.M. 10 NOVEMBER 2011
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GOLDMAN Sachs lost money trading in
21 days out of the third quarter of this
year, it revealed yesterday in regulatory
fillings.
That compares to losses on just two
days in the same quarter last year on its
proprietary trading desk, which record-
ed net negative revenues of $2.48bn
(1.56bn) for the third quarter of this
year.
The bank also grew nervous through-
out the quarter and cracked down on
the amount of money that could be put
at risk each day. The average daily value
at risk was $100m versus $120m in the
same period last year. It lost more than
$100m on one day in the period.
Goldmans filings also give an esti-
mate for reasonably possible losses
due to legal cases, putting the maxi-
mum possible cost at $2.6bn. It added
that it could face additional inestimable
losses from other cases where plaintiffs
have not yet specified how much they
are suing over.
The bank is embroiled in numerous
disputes resulting from the fallout of
the financial crisis, with many former
clients including government-spon-
sored firms Fannie Mae and Freddie
Mac claiming they were sold products
without fully knowing the risks
involved.
Goldman also revealed that it has
increased its cash on deposit at the
Federal Reserve since the start of the
year: the money in its Fed account rose
from $28.12bn to over $30bn as of
September.
The bank shocked markets by report-
ing its second ever quarterly loss as a
public company last month, losing 84
cents per share.
Goldman lost
on 21 days in
three months
Goldman, led by Lloyd Blankfein, lost money more regularly last quarter Picture: REUTERS
BY JULIET SAMUEL
BANKING

HSBC will leave London if there are


not substantial changes to the poli-
cies proposed by the Vickers
Commission, its chief financial offi-
cer Iain Mackay said yesterday.
Speaking during the banks third-
quarter results presentation, Mackay
said that Vickers demand that bank
issue billions in senior unsecured
debt in order to absorb losses if it fails
would cost HSBC $2.1bn (1.32bn) a
year in addition to the $400m cost of
the UKs bank balance sheet levy.
We would probably view that cost
as being too high, he said. The treas-
ury is still working out the details
however, many of which are incom-
patible with EU law.
In September, City A.M. revealed
both that Hong Kong is courting
HSBC to get the bank to redomicile to
Asia and that the ICBs capital propos-
als were causing concern to banks
like HSBC and Standard Chartered,
which fund themselves mainly out of
deposits and have not sold enough
bonds to fulfill the ICB requirements.
HSBC has a loan-to-deposit ratio of 76
per cent.
Despite its regulatory worries, the
bank reported a more-than-doubling
in quarterly pre-tax profit to $7.16bn
yesterday. Impairment costs rose by
$700m, however, driven by its US
business, and its cost-to-income ratio
crept up to 62.7 per cent.
HSBC: Vickers
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BY JULIET SAMUEL
BANKING

STRICKEN Franco-German bank


Dexia reported a one-off 6.3bn
(5.36bn) loss in the third quarter as
its break up continued.
It faced costs of 4bn on the nation-
alisation of Dexia Bank Belgium and
a loss of 2.3bn on its holdings of
Greek government debt.
The group, which last month
received a 90bn bailout, yesterday
also listed an exposure of 10bn to
Italy and 1.84bn to Portugal.
It said, however, that it had made a
135m profit on the sale of
DenizEmeklilik, its Turkish insurance
arm, to major US insurer MetLife.
The board also said it had cleared
the way for a capital increase of up to
4.2bn for its Dexia Credit Local unit,
because of extra write-downs on its
Greek bonds and to meet French reg-
ulatory requirements on capital.
Bailed-out Dexia reveals 6.3bn
loss on Belgian and Greek arms
BANKING

THE CO-OPERATIVE Group insisted on


a drastically slimmed down package of
assets when it put in its second-round
bid for 632 Lloyds branches yesterday.
City A.M. understands that the Co-op
has demanded that Lloyds narrow the
funding gap between the loans and
deposits of the package by significantly
more than its rival bidder NBNK had.
NBNK offered to buy some 45bn of
assets on 35bn of deposits, leaving a
10bn gap, but the Co-op has insisted
on a funding gap of no more than
5bn with mortgages making up most
of the assets left out. NBNK has also
bid on Northern Rock, which has a
large deposits surplus, and could
revise its offer to include fewer assets.
Selling to the Co-op could be easier
for Lloyds because as an established
bank it will not need extra regulatory
capital put into the branches.
But the bid has conditions attached
such as a requirement that the branch-
es do not see a large-scale flight of
deposits during the two-year period
over which the deal would complete.
It is understood that Hugh
Osmonds Sun Capital has made little
progress in disputing the branches IT
costs and is unlikely to bid.
Once Lloyds has two final offers on
the table, it could move very quickly to
exclusivity with one of the parties.
In less good news for the bank,
Moodys placed Lloyds on review for a
downgrade due to the shock depar-
ture of its CEO last week.
The Co-op declined to comment.
Co-op bids on smaller Lloyds
asset package than NBNK
News
6 CITYA.M. 10 NOVEMBER 2011
HSBC boss Stuart Gulliver could take the bank back to Hong Kong Picture: REUTERS
ANALYSIS l HSBC Holdings PLC
p
3Nov 4Nov 7Nov 8Nov 9Nov
540
530
520
510
506.30
9 Nov
BY JULIET SAMUEL
EXCLUSIVE

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News
7 CITYA.M. 10 NOVEMBER 2011
THE FINANCIAL Services Authority
(FSA) yesterday handed down a record
$9.6m (6m) fine for market abuse.
Dubai-based Rameshkumar
Goenka was ordered to return $3.1m
to an unnamed bank and pay a $6.5m
fine for manipulating the price of
shares in Reliance Industries.
The FSA said he artificially inflated
the price of the firms stock by buying
a vast quantity of shares in the sec-
onds before the bell in order to avoid
taking heavy losses on a structured
product linked to its closing price.
The fine is more than twice the size
of the FSAs previous record penalty
on an individual a 2.8m fine on for-
mer broker Simon Eagle for market
abuse last year.
Tracey McDermott, acting director
of enforcement at the FSA, said: The
impact of such behaviour goes far
beyond one counterparty. Market con-
fidence will suffer if participants can-
not be satisfied that the price of
FSA gives record $9.6m
fine for market abuse
Tracey McDermott is the FSAs acting
director of enforcement
BY STEVE DINNEEN
ENFORCEMENT

quoted securities reflects the proper


interplay of supply and demand.
The financial watchdog said
Goenka had planned a similar scam
earlier this year but was forced to
abandon the scheme due to events
beyond his control.
The case against Goenka included
audio evidence gathered by the FSAs
enforcement team.
The penalty would have been even
higher but Goenka was given a 30 per
cent discount for settling with the
regulator at an early stage. He denied
intentionally committing market
abuse and said his scheme was simi-
lar to tactics used by banks.
Last year Eagle was handed a 2.8m
fine for creating a scheme to artifi-
cially inflate the price of shares in
Aim-listed Fundamental-E
Investments (FEI). He was also banned
from ever working in the financial
services sector again.
STOCKBROKING group Westhouse
Holdings said it would buy the invest-
ment banking unit of Arbuthnot
Banking Group for an undisclosed
sum to take advantage of a potential
consolidation in the corporate
broking market.
Westhouse, which has seen a
growth in the number of its corporate
clients since the end of June, said it
expected the deal to further enhance
its clientele.
It is clear that there is overcapacity
in the small to medium sized compa-
ny corporate broking and advisory
market and that, as a result, consoli-
dation is a strategic opportunity,
chairman Garth Milne said in a state-
ment.
Last month, Arbuthnot Banking,
valued at 50m, had said it would
float its Secure Trust Bank division on
Londons junior market AIM, as part
of plans to develop its business and
compete with Britains major lenders
in the wake of the financial crisis.
Westhouse to
buy Arbuthnot
investment unit
FINANCIAL SERVICES

TAKEOVER specialist Resolution


unveiled an outsourcing agreement
aimed at boosting planned cost sav-
ings by 27 per cent and said financial
turmoil in the Eurozone had brought
it closer to doing deals there.
A 15-year deal to outsource the back-
office functions of Resolutions British
life insurance unit to Diligentia, part
of Tata Consulting, will deliver yearly
savings of 143m by 2013, up from a
previously-flagged 112m, it said yes-
terday. Resolution also said Eurozone
banks and insurers had become more
likely to sell unwanted businesses to
raise capital and reduce debt
THE CHIEF executive of car insurer
Admiral saw more than 115m wiped
off the value of his stake in the busi-
ness yesterday after the group finally
succumbed to the industry-wide
slump in profit growth.
Shares in Admiral, which also
trades under the Bell, Diamond and
Elephant brands, closed down 25.61
per cent at 887.5p after it said this
years profit would come in near the
bottom of forecasts because of a rise
in injury claims.
Chief executive Henry Engelhardt
is the biggest loser. His stake of 14.1
per cent stake, worth 454m at the
start of the day, had fallen by 116.3m
last night.
Admiral had outperformed the
market with an unbroken run of prof-
it increases since going public seven
years ago, based on its ability to avoid
high-risk drivers, but yesterday it said
growth in its pre-tax surplus could be
limited to 10 per cent this year.
The Cardiff firm, which also owns
comparison website Confused.com,
blamed a level of injury claims above
historical levels of experience in the
three months to the end of
September. Analysts had expected
profits to rise 21 per cent to 324m.
Motor insurers have paid out more
in claims than they received in premi-
ums every year since 1994, according
to the Association of British Insurers,
as claims filed by no win, no fee
lawyers have increased.
Insurers have long battled fraudu-
lent claims and are hopeful that
plans to ban lawyers from paying fees
to agents who refer accident victims
to them will temper the increase.
However, Admiral revealed in
August that fees from referring its
own customers to personal injury
lawyers generate six per cent of its UK
pre-tax profit.
Admiral boss
116m loss as
stock plunges
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SALES at Moneysupermarket.com
rose strongly in the third quarter as
the price comparison firm revealed it
will pay up to 11m for a 51 per cent
share in Local Daily Deals (LDD).
It has handed over 1m initially
with more cash due to follow over the
next three years depending on the
performance of LDD.
The group reported a 14 per cent
rise in revenues with earnings before
interest, taxes, depreciation, and
amortisation up 25 per cent in the
period to 8 November. Sales soared
107 per cent in home services as con-
sumers looked to cut energy bills.
Deals website
snaps up rival
Resolution eyes
admin savings
BY PETER EDWARDS
INSURANCE

INSURANCE

FINANCIAL SERVICES

Still smiling? Admiral chief Henry Engelhardt saw the stock tumble Pic: Micha Theiner/CITY A.M.
News
8 CITYA.M. 10 NOVEMBER 2011
ANALYSIS l Admiral
p
3Nov 4Nov 7Nov 8Nov 9Nov
1,300
1,200
1,100
1,000
900
887.50
9 Nov
ANALYST VIEWS: ARE PROBLEMS LOOMING FOR
INSURANCE GROUP ADMIRAL? Interviews by Peter Edwards

JONATHAN JACKSON | KILLIK & CO


The claims environment remains tough, with the frequency and expected cost of new large per-
sonal injury claims remaining above historical levels consistent with the first half of 2011

KEVIN RYAN | INVESTEC


It remains our view that significantly outperforming a commoditised market for sustained periods
is impossible. It appears to us that the market is catching up with Admiral.

JOY FERNEYHOUGH | ESPIRITO SANTO


Much will depend on managements ability to demonstrate whether it has drawn a line in the sand here,
or if this is likely to cause further damage to the profit and loss account and Admirals premium franchise.


Martin Wolf Merryn Somerset Webb Jeffrey Currie Russ Mould Steve Ward Dominic Frisby Julian Mayo Eoin Treacy
www.WorldMoneyShowLondon.co.uk
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y reac Eoin T
THE OWNER of the Superdry fashion
label said it was confident its distribu-
tion capability would return to normal
levels later this month, as it reported a
surge in second quarter sales.
Last month SuperGroup, one of last
years most successful stock market
flotations, warned that its full-year
profits would be hit after problems
with its warehouse management sys-
tem left its shops short of clothing.
In its interim management state-
ment yesterday the company, well-
known for its trademark T-shirts and
hooded tops, said sales rose 42 per cent
to 82m in the three months to 30
October, compared with growth of 66
per cent in the previous quarter.
Founder and chief executive Julian
Dunkerton said the group was well on
the road to rectifying the situation
and that it had learned some valuable
lessons in the process.
Shares rose as much as 6.7 per cent
yesterday before closing down 0.76 per
cent at 730.5p. After floating 20
months ago at 500p, its shares reached
highs of almost 18 in February after
reporting stellar sales.
However, a poorly received fourth
quarter trading statement in May fol-
lowed by October's profit warning
prompted a dramatic reversal of for-
tune.
The company warned last month
that the warehousing problems would
wipe between 6-9m off its full-year
profits, sending its shares tumbling.
Supply problems also contributed to
the slowdown in retail sales during the
period, which grew by 23 per cent to
40m.
Supergroup maintained yesterday
that further progress has been made
in restoring the replenishment capabil-
ity and further improvements are
expected during November.
Wayne Brown, an analyst at Collins
Stewart said this suggested issues
impacting the UK are ongoing which
highlights their cautious stance lead-
ing into the busiest trading period of
the year.
The group said it was on track to
open 70 stores this financial year.
Supergroups
sales pick up
Supergroup founder Julian Dunkerton said he was confident of future growth Pic: REX
BY KASMIRA JEFFORD
RETAIL

News
10
20-27 November
The O2
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NOVAK DJOKOVIC
SAINSBURYS chief executive Justin
King said the supermarket chain
shouldnt be apologising for investing
in the UK economy as he defended
the groups decision to open more
than 1.4m square feet of new store
space this year.
The UKs third biggest supermarket
has been driving an ambitious expan-
sion strategy and spent 682m in the
first half of its financial year opening
590,000 square feet of new space.
Overall, the group plans to spend
1.2bn in the full year.
Kings comments came as the group
reported profits before tax for the six
months to October of 395m, down
from 466m last year, reflecting lower
profits from property disposals.
Underlying pre-tax profits increased
by seven per cent from 332m to
354m, driven by 50m cost savings,
on sales that rose by 6.1 per cent to
11.69bn.
Sainsburys aggressive expansion
Sainsburys boss defends
growth plan as sales rise
Justin King Pic: Micha Theiner/CITY A.M.
BY KASMIRA JEFFORD
RETAIL

News
11 CITYA.M. 10 NOVEMBER 2011
plan in a uncertain economic environ-
ment has been criticised, with some
brokers saying they harbour con-
cerns about the sustainability of
returns from a 1.2bn capital expendi-
ture.
Dave McCarthy, an analyst at
Evolution Securities said: Sainsbury
remains very vulnerable in this envi-
ronment. It is paying dividend out of
debt, has the weakest cash flow and
the thinnest margin of the big four.
King, however said the group was
pleased with its sales and profit per-
formance: We expect the economic
environment to remain challenging
for the foreseeable future but we are
confident of further good progress in
the Christmas period ahead.
Last month the group joined a big
four price-matching battle to win over
cash-strapped shoppers. King said 50
per cent of baskets were cheaper than
its rivals.
RISING cotton prices and other costs
took a toll on quarterly margins at
Macys and Ralph Lauren, thoughboth
companies still beat Wall Street earn-
ings estimates as Ralph Laurens rev-
enue exceeded expectations and
Macys sales gains continued to out-
pace those of its rivals.
Macys, whose fleet includes about
810 namesake stores and the upscale
Bloomingdales chain, reported net
income of $139m (87.4m) for the
third quarter to 29 October, twice what
Wall Street was expecting.
Still, Macys only raised its full-year
profit outlook by 10 cents a share.
Ralph Lauren, whose brands include
Polo, Club Monaco and Chaps, said net
income rose to $233.5m in the second
quarter ended on 1 October from
$205.2m a year earlier. Analysts on
average had forecast $2.24 a share.
Ralph Lauren expects revenue to
rise at a low-teens percentage rate this
quarter, prompting it to raise its full-
year sales forecast.
Cotton prices
hit Macys and
Ralph Lauren
RETAIL

ANHEUSER-BUSCH InBev and


Carlsberg showed sharply contrasting
fortunes in the third quarter, the for-
mer persuading US and Brazilian beer
drinkers to swallow higher prices
while the latter suffers a tax-rise hang-
over in Russia.
AB InBev, the worlds biggest brew-
er and maker of Budweiser, Stella
Artois and Becks, persuaded increas-
ingly affluent Brazilians to drink
higher priced beer and US drinkers to
stick with or shift to premium brands
despite an economic slowdown.
By contrast, Carlsberg, the world
number four and producer of Baltika
and Tuborg, suffered a double wham-
my in Russia of lower volumes and
higher costs.
Despite its Russian problems,
Carlsberg kept its forecast for annual
operating profit, excluding some
items, of about 1bn kroner (114m)
against expectations for a cut, sending
its shares up almost three per cent.
Belgium-based AB InBev said yester-
day third-quarter core profit rose 5.5
per cent on a like-for-like basis to
$3.97bn (2.5bn), against a market
expectation of $3.88bn.
In October, Heineken reported a
surprise increase in volumes and rev-
enues, helped by a rebound in Russia
and stronger African markets.
KESA Electricals was yesterday forced
to pay a 50m dowry to offload Comet,
its struggling British electricals chain.
OpCapita, the restructuring special-
ist that is buying Comet, paid a head-
line consideration of just 2 for the
loss-making chain.
But in reality, Kesa which is also
taking on Comets 45.9m pension
deficit is paying a great deal to get
rid of the business.
We had to pay 50m to get the busi-
ness away. We will write it off as hav-
ing no value, chairman David
Newlands said yesterday.
However, Kesa investors will be
relieved the firm has severed itself
from Comets annual rent bill of
90m. Activist fund Knight Vinke,
Kesas biggest shareholder, praised
management for offloading Comet in
a tough UK retail environment.
The fire sale of Comet underlines
the torrid conditions for retailers try-
ing to sell gadgets, TVs and computers
on the high street.
Kesa, which owns Darty in France, is
the second big name in consumer elec-
tricals to quit the UK this week.
On Monday, Carphone Warehouse
and Americas Best Buy announced
they were pulling the plug on their
joint venture and shuttering all 11 of
their British stores.
It is not the first time that
OpCapital, which previously operated
as Merchant Equity Partners, has
bought a business from Kesa. In 2008,
it was part of a consortium that
bought BUT, Kesas French furniture
chain, for 550m.
Merchant Equity also saved the now-
defunct furniture retailer MFI from
collapse in 2006, before selling it to
management in 2008.
Like-for-like sales at Comet, which
lost nearly 9m last year, were down by
almost 20 per cent in Kesas first half.
Kesa coughs
up 50m to
dump Comet
AB InBev flourishes while rival
Carlsberg is hit by Russian woes
BY DAVID CROW
RETAIL

LEISURE

Kesa boss David Newlands said Comet will be written off with no value Main picture: REX
News
12 CITYA.M. 10 NOVEMBER 2011
High street electricals: a mugs game
IN the end, they couldnt even give it
away. As well as taking on Comets
pension scheme, which is in deficit
to the tune of 45.9m, Kesa is having
to pay a 50m dowry to buyer
OpCapita to offload its ailing electri-
cals chain.
Buried deep in the terms and con-
ditions of the contract is a laughable
clause that prevents Kesa from
returning to the UK consumer elec-
tronics market in the near future. It
would be mad to attempt a come-
back. High street consumer electron-
ics is a mugs game.
It would be wrong to blame the
economy. In some senses, the con-
sumer electronics sector is weather-
ing the storm with more resilience
than others: just look at Apple.
And last month, BSkyB reported
that 771,000 of its subscribers had
upgraded to its high definition (HD)
services in the last year. Its fair to
assume that a significant propor-
tion of those customers had to buy a
new HD-ready TV, but most of them
didnt go to Comet (or Dixons,
BestBuy and Argos for that matter).
Instead they turned to internet
retailers such as Amazon, where
consumer electronics items increas-
ingly dominate the best-seller lists.
Now that two giants BestBuy
and Kesa have exited the UK in the
space of just one week, shares in
Dixons (which initially spiked yester-
day) are back in focus.
Any fillip will be fleeting. A simi-
lar reappraisal of HMVs shares took
place following the demise of
Woolworths and Zavvi, and look
where it has ended up: its shares
have lost almost 90 per cent of their
value in the last twelve months.
Dixons isnt the winner. It is the
last man standing. And not for long.
BOTTOMLINE
Analysis by David Crow
ANALYSIS l Kesa Electricals PLC
p
3Nov 4Nov 7Nov 8Nov 9Nov
110.00
107.50
105.00
102.50
100.00
97.50
xxx.00
9 Nov
CISCO Systems, the worlds biggest
networking equipment maker,
reported quarterly earnings per
share that beat estimates, sig-
nalling that efforts to revive growth
are beginning to pay off.
The company yesterday reported
adjusted earnings of 43 cents per
share for the fiscal first quarter
ended 29 October, compared with
the average analyst forecast of 39
cents.
Revenue rose to $11.3bn (7.1bn)
from $10.75bn a year earlier, versus
the average forecast of $11.03bn.
We werent expecting fireworks
for this quarter. I knew the compa-
ny would control costs efficiently
and there's a little bit of revenue
upside, said BGC analyst Colin
Gillis.
Cisco shares gained more than
one per cent to $17.79 in extended
trade after closing down 3.8 per
cent at $17.61.
Overall, the print looks clean
with margin and operating profit
upside relative to our estimates that
are above the Street, said Brian
White of Ticonderoga Securities.
This report reflects solid execu-
tion by the company in a very chal-
lenging market environment, he
added.
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SS II D





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Cisco proves growth is returning
as earnings beat Street forecasts
TECHNOLOGY

HANNOVER Re beat expectations


with net profit of 163.2m (138.3m)
in the third quarter, after invest-
ment income declined by less than
expected in the euro debt crisis.
The worlds third-biggest reinsur-
er had been expected to post quar-
terly net profit of 134m, sharply
lower than the 271m of the year-
earlier quarter, when earnings were
boosted by a one-off tax gain.
This puts in place a good plat-
form for achieving our profit target
of at least 500m for the full finan-
cial year, chief executive Ulrich
Wallin said in a statement yester-
day.
The company said it aimed to pay
a dividend for the 2011 financial
year that could even exceed 40 per
cent of group net income, the upper
end of its 35-40 per cent target
range.
Quarterly investment income fell
by 13 per cent, which was less than
the 20 per cent drop analysts had
expected.
Hannover Re earlier this year
abandoned its initial net profit tar-
get of earning 650m in 2011 follow-
ing the devastating earthquakes in
Japan and New Zealand and floods
in Australia, which racked up bil-
lions of euros in insured damages.
Hannover Re beats estimates
and says it is on track for year
INSURANCE

News
14 CITYA.M. 10 NOVEMBER 2011
Skyscraper
put on ice
LONDON property developer
Great Portland Estates said it is
unlikely to secure a major letting
to begin construction of its
planned 100 Bishopsgate sky-
scraper in the City for at least six
months.
The group has a joint venture
with Canadian property firm
Brookfield to build the proposed
office tower in Londons financial
district, but pre-lets have become
harder to secure as firms remain
reluctant to move due to the eco-
nomic uncertainties.
Great Portlands adjusted net
asset value rose to 378p per share
at the end of September, up 20 per
cent from 316p a year ago.
The value of its portfolio has
risen 3.9 per cent to 1.8bn since
March, benefitting from the
resilience in Londons West End
property market in the first half
of the year.
City office leasing levels were
higher in the three months to the
end of September but Great
Portland said it expects the full
year to be down on the high levels
of 2010, the group said in a state-
ment.
BY KASMIRA JEFFORD
PROPERTY

GENERAL Motors posted a third-quar-


ter profit that fell 15 per cent after a
loss in Europe, and disappointed
investors with a forecast that closed
the door on any improvement in the
current quarter.
GM vowed to slash costs to shore up
margins in a sputtering economy but
its fourth-quarter outlook disappoint-
ed investors and sent shares tumbling
as much as 10 per cent yesterday.
Chief executive Dan Akerson said
the top US automaker was not per-
forming well enough, almost a year
after a record initial public offering
(IPO) that capped the automakers
return from a US government bailout
and bankruptcy.
GM delivered a solid quarter ... but
solid isnt good enough, even in a
tough global economy, he said.
We know that theres more work
left to be done, Akerson added. We
need to do a better job in Europe and
South America. The results there are
not sustainable and not acceptable.
Finance chief Dan Ammann said
GM needed to eliminate cost and
complexity from its operations, sug-
gesting the kind of campaign Ford
Motor has run under CEO Alan
Mulally for nearly five years. The One
Ford campaign has merged vehicle
platforms and development efforts
globally, cutting costs and letting Ford
to rely on more common suppliers.
Ford, GMs closest rival, last month
posted third-quarter net earnings that
were nearly as high as GMs, on rev-
enue that was 10 per cent lower than
GMs sales.
GM ended the third quarter with
less than $3bn (1.88bn) in long-term
debt.
The companys net income in the
third quarter fell to $1.7bn, or $1.03 a
share, compared with $2bn or $1.20 a
share in the year-earlier period.
Revenue rose to $36.7bn from
$34.1bn last year in line with ana-
lysts expectations.
Shares in GM
tumble after
profits drop
ITALIAN motorcycle maker Ducati
has appointed Deutsche Bank,
Goldman Sachs and Mediobanca to
manage its prospective Hong Kong
IPO, sources told City A.M. yesterday.
Reports of the banks appointment
for a Hong Kong IPO come 24 hours
after the London-based retailer of dia-
monds, Graff Diamonds, was report-
ed to be considering a $1bn IPO in
Hong Kong. Rothschild is believed to
be advising Graff on the deal.
If they go ahead with their Hong
Kong IPO plans, Ducati and Graff
Diamonds would be following in the
footsteps of fashion brand Prada
which completed a HK$16.7bn
(1.35bn) IPO earlier this year.
Owing to brand recognition and
possibly luxury brand consideration,
Ducati will hope to benefit from
Hong Kongs retail-strong market, the
specialist publication IFR reported.
UK listing authorities will be mind-
ful of the success of the Hong Kong
IPO market as they consider UK
investor requests to tighten up regula-
tion of the UK markets.
Some investors fear there have
been too many waivers of some listing
conditions, such as the percentage of
shares listed in the free float element
of a share issue, as the number of oli-
garch-led companies have increased.
Ducati appoints
banks for IPO
in Hong Kong
Ducati is gearing up for an initial public offering in Hong Kong Picture: REUTERS
BY HARRY BANKS
MOTORING

CAPITAL MARKETS

News
16 CITYA.M. 10 NOVEMBER 2011
HOME FROM
HOME FOR
HYDE PARK
OLIGARCHS
LUCA del Bono has been busy ever since he
exited Quintessentially, the concierge serv-
ice he started with Ben Elliot, to start his
property fund Del Bono & Partners.
The leisure-focused fund has bought
150m-worth of property over the last two
years, recently acquiring the C London
restaurant in Mayfair and 50 St Jamess,
where del Bono is in talks with
Westminster Council about converting the
Grade II-listed building into a private club,
hotel, restaurant and spa. The building is
host to four floors of endless possibilities,
said a source close to Project Opus.
Next on the list, however, is a Russian
restaurant conveniently located for the oli-
garch tenants of Nick Candys One Hyde
Park development. Originally due to open
in November, Mari Vanna will open for
business at 116 Knightsbridge next month
as a partnership with Dmitry Sergeyev and
Vadim Lapin of Ginza Project.
It is the Russian leisure groups first
opening in London, so expect the home-
ly venue to corner the market in borsch,
potato pancakes and cod liver pt.
No doubt Ukrainian tycoon Rinat
Akhmetov will be first in line to try the
Galubtzi, a speciality of his home country
SLEEPING OUT
NO TENTS, just sleeping bags and card-
board for the City firms who will tonight
sleep rough in aid of homeless charity
Centrepoint at Exchange Square near
Liverpool Street.
Drivers Jonas Deloitte partner Jon
Milward and Taylor Wimpeys land and
planning director Pete Andrew are
among the 650 people taking part in the
annual Sleep Out event. Night-time tem-
peratures, at the time of writing, are fore-
cast to be 11 degrees centigrade.
PRIVATE VIEWING
CONGRATULATIONS to City A.M. reader
Kate Green of RBS, who took home the art-
work Chinese Doll by Jane Bond on
Tuesday night as the winner of a competi-
tion to mark the start of INGs art exhibi-
tion at The Mall Galleries.
The ING Discerning Eye Exhibition,
which shows small works independent-
ly selected by artists, collectors and crit-
ics including Cable & Wireless
Worldwides chairman John Pluthero,
runs from today until 21 November.
Admission is free, 10am to 5pm daily.
Above: Kate Green of RBS
with Gerald Walker and
Adrian Simpson of ING
Left: An artists mood
drawing of new Russian
restaurant Mari Vanna
Below: Made in Chelseas
A m b e r
Atherton
17 EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
The Capitalist
CITYA.M. 10 NOVEMBER 2011
otherwise known as cabbage leaves with
spiced lamb and rice.
MAKING IT IN CHELSEA
THERE are sound business reasons for
appearing on the reality show Made in
Chelsea says entrepreneur Amber
Atherton (right), whose online jewellery
boutique Myflashtrash.com has
received financial backing from a string
of American investors.
New York-based fund manager Jeff Lo
of Falcon Management and former
Goldman Sachs trader Jihan Bowes-
Little are among the private investors
supporting the cult jewellery vendor,
which has enlisted Miamis Farin
Innovations to build its new website
ahead of the sites relaunch next
month. You read it here first.
COMING FULL CIRCLE
WHAT goes around, comes around. Just
ask Pizza Express founder Peter Boizot,
whose current venture Soho Pizzeria on
Beak Street has been bought by
Gondola Group, the latest owner of the
Pizza Express chain started by Boizot
back in 1965.
The deal is a nice early birth-
day present for Boizot, who cele-
brates his 82nd birthday this
month.
Not least because Gondola
paid a substantial premium
to get its paws on the Soho
institution, as part of chair-
man Chris Woodhouses ambi-
tious expansion plans for the
value dining empire that also
controls Zizzi and ASK.
RUPERT Murdoch has assumed the
role of chairman of News Corps
Australian arm in a bid to shore up its
defence against an increasingly hostile
government.
Current chairman of News Ltd John
Hartigan, a veteran journalist, is retir-
ing, paving the way for a homecoming
for Murdoch. Investors in News Corp
have been pressing for Murdoch and
his son James to step back from the
business after the phone hacking
scandal that engulfed the firm and
led to the closure of the News of
the World over the summer.
The Australian unit represents
a small but symbolically sig-
nificant part of News
Corps business. Murdoch
built his fathers small
South Australian news-
paper business into a
global media con-
glomerate.
The Australian gov-
ernment has
slammed News
Corps daily newspa-
pers for their politi-
cal coverage and has
scrapped a tender for
b r o a d c a s t i n g
Australian TV into Asia, which News
Corps part-owned Sky News was
tipped to win. The government has
also launched a probe into media laws
in the wake of the News Corp phone
hacking scandal in the UK.
Meanwhile, James Murdoch will
appear before a parliamentary today
to face a second round of questioning
about the phone-hacking scandal at
the News of the World.
Analysts say his rapidly disappear-
ing chances of succeeding his father at
the companys helm could hang on
whether the committee establish-
es he was aware of the corrup-
tion.
He was recalled after his ini-
tial testimony was contradicted
by Colin Myler and Tom
Crone, the former editor
and former head of legal
for the News of the
World.
His position has
been precarious
since it emerged he
would not have
been re-elected to
News Corps board
at the companys
annual meeting had
it not been for the
Murdoch familys 40 per
cent voting stake.
Murdoch is
named chair
of News Ltd
BY STEVE DINNEEN
MEDIA

VODAFONE last night sealed the


920m (790m) sale of its 24.4 per
cent stake in Polkomtel after gaining
regulatory clearance from Polish
authorities.
Spartan Capital Holdings beat off
competition from rivals including
Apax and Telenor to acquire the
stake.
The sale is part of Vodafones strate-
gy to offload non core assets. It has
also sold its 44 per cent stake in SFR to
joint venture partner Vivendi for
6.8bn, its minority interest in China
Mobile for 4.3bn and a holding in
Japans Softbank for 3.1bn.
Vodafone this week edged its full-
year outlook higher as growth in
emerging markets and robust trad-
ing in northern Europe helped it to
post first-half results ahead of fore-
casts.
Vodafone seals the 790m sale
of its stake in Polands Polkomtel
TELECOMS

AUTONOMY spin-off Blinkx has


agreed to buy digital marketing
agency Prime Visibility Media Group
(PVMG) for $36m (22.5m) in cash.
The California-based company will
partially fund the acquisition
through a placing of new shares.
Blinkx says it will integrate PVMGs
platform into its own, enabling its
video search engine to respond to a
portion of PVMGs 1.5bn daily queries
with relevant video results.
Blinkxs chief executive Suranga
Chandratillake said: Online video
advertising continues to be the fastest
growing format by a significant mar-
gin, and is forecast to reach $3.5bn
over the next three years.
Brands continue to move an
increasing amount of their TV adver-
tising budgets to online video, but
need to be able to reach an audience
of equivalent size on the web.
The acquisition will enable us to
tap into a new audience of intent-
driven consumers and deliver TV-
style brand advertising to them,
which gives us the opportunity to
expand our customer reach and
increase PVMGs margins over time.
The share placing, equal to almost
two per cent of the companys stock,
will raise around 9.4m.
Blinkx, the worlds largest video
search engine, was spun-off from
Autonomy in 2007.
Autonomy spin-off Blinkx
buys digital agency for $36m
BY STEVE DINNEEN
TECHNOLOGY

News
18 CITYA.M. 10 NOVEMBER 2011
CITIGROUP is the nominated adviser
and broker to Blinkx, working on both
the acquisition and the share placing.
Heading up its team was Charles
Lytle, who was poached from ABN
Amros Hoare Govett business in
2005.
Lytles departure caused a spat
between the banks, with the Dutch
bank claiming Citigroup had attempt-
ed to steal an entire division worth of
staff. It followed the exit of Hoare
Govetts chief executive, Nigel Mills,
and four of his team Andrew
Chapman, Tom Reid, Andrew
Thompson and Chris Zeal just a
week earlier.
Also working on the deal for
Citigroup were Christopher Wren and
Rowland Bourne. Wren joined the
bank last year from Seymour Pierce
and has worked extensively with
Blinkx.
Citigroups presence on the deal has
been seen as a sign of the barren
M&A landscape, with the bank usually
used to working on far bigger deals.
Citigroup has been busy in recent
months with the sale process for EMI,
which it assumed control of after
owner Terra Firmas debts became
unmanageably large.
ADVISER: CITIGROUP
CHARLES LYTLE
CITIGROUP
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EUROPES biggest regional airline
Flybe reported a higher first-half prof-
it, but said it will cut the number of
UK domestic flights this winter amid
falling demand and high fuel costs.
The Exeter-based carrier, which has
seen its shares slide since its flotation
last year, slashed its full-year profit
guidance last month after experienc-
ing a slowdown in September sales.
Revenues from forward ticket sales
for this winter are one per cent lower
than a year ago, the group said in a
statement yesterday.
The group, which operates 83 air-
craft from 14 UK airport bases, said it
would reduce the number of seats
flown over the winter by six per cent
compared to a year ago as it matches
capacity with demand.
Chief executive Jim French said the
group was taking a very cautious
view going forward due to economic
uncertainty and that its high frequen-
cy commuter routes meant it could
cut flights without cutting routes.
We are de-risking the business. The
greatest sin in the aviation industry is
too many aircraft and too much capac-
ity we are taking a neutral position.
Revenues for the six months to
October rose 6.4 per cent to 341.6m
compared with last year, when flights
were grounded due to the volcanic ash
disruption, while pre-tax profits rose
to 14.3m from 8.2m.
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Flybe reduces winter flights as
trading conditions remain tough
BY KASMIRA JEFFORD
TRANSPORT

News
20 CITYA.M. 10 NOVEMBER 2011
TRANSPORT operator FirstGroup
reported a nine per cent rise in first-
half adjusted pre-tax profit, driven by
a strong performance at its UK rail
business, and said it was upbeat on its
outlook, despite facing a weak econo-
my.
However it warned that while rail
was holding up well in the economic
turmoil, its bus business was strug-
gling
FirstGroup, whose rail business
includes the Great Western franchise
running into central London, also
said it was targeting net cash inflow
of 150m for this fiscal year, which
would include further asset disposals.
In September, the company sold its
German bus unit for 5.5m (4.69m).
Adjusted pre-tax profit in the April
to September period rose to 84.5m,
from 77.5m a year ago.
Revenue rose about three per cent
to 3.17bn.
Shares in FirstGroup, which have
shed about a fifth of their value over
the past year, closed up four per cent
at 341p.
Rail passengers
boost revenues
at FirstGroup
TRANSPORT

ANALYSIS l Flybe Group PLC


p
3Nov 4Nov 7Nov 8Nov 9Nov
72
71
69
70
68
70.00
9 Nov
French said that while the group
had taken a conservative position in
the UK market, its sees considerable
opportunities for expansion in Europe
where it is looking on a selective
basis.
Flybe Finland, its new joint venture
with Finnair, generated revenues of
8.6m in September 2011, its first
month of trading, and is already flying
across 26 routes.
Flybe rose 2.94 per cent to 70p last
night. Its shares have fallen almost 80
per cent since floating on the London
Stock Exchange in December last year.
GROWTH will slow almost to a halt in
2012, but the UK will probably avoid a
double dip recession, according to a
report out today from PwC.
GDP growth is expected to come in
at one per cent in both 2011 and 2012,
with a 30 to 40 per cent chance of
recession, chief economist John
Hawksworth told City A.M.
PwCs central scenario assumes that
the Eurozone will muddle through
with growth of less than one per cent
and without a major meltdown.
We expect George Osborne will
take some steps towards a plan A+
such as bringing forward infrastruc-
ture spending and targeting youth
unemployment, said Hawksworth.
However, this will be in the region
of billions of pounds, not tens of bil-
lions markets would not like signifi-
cant changes to fiscal plans.
The auditor also studied variations
in household finances across the UK,
taking into account factors including
unemployment, and house prices.
Households in London and the east
are experiencing the least financial
stress, with the index coming in at
minus 1.64 and minus 1.15 respective-
ly, while Wales and the north east are
the most stressed, at 1.38 and 1.20.
CHINESE industrial output grew at
its slowest rate for a year and infla-
tion fell sharply in October, statistics
from the countrys National Bureau
of Statistics showed yesterday.
Consumer price inflation fell to 5.5
per cent, down from 6.1 per cent in
September and well below Julys
three-year peak of 6.5 per cent.
Inflation in producer prices fell fur-
ther, to five per cent.
Growth in industrial output fell to
13.2 per cent in the year to October,
after officials expressed concern over
weakening global demand.
Analysts believe the government is
leaning towards attempting a new
stimulus to the economy.
Should Western economies go
into recession and export demand
dry up, then a fresh flood of fiscal
and monetary stimulus is likely the
government will do what it can to
avert a hard landing, said Tim
Ohlenburg from the Centre for
Economics and Business Research.
It has a massive fiscal and mone-
tary parachute in store, so a soft land-
ing remains the most likely scenario.
Premier Wen Jiabao added to
expectations of a stimulus, writing
on a government website that since
October, overall domestic prices have
been falling noticeably, particularly
highlighting the decline in pork and
egg prices.
Food inflation is key to Chinas con-
sumer prices, and peaked at 14.8 per
cent year-on-year in July,
Slowing Chinese inflation opens door
to more fiscal and monetary stimulus
A RECORD trade deficit in goods was
recorded in September as import
growth outstripped export demand,
according to figures published by the
Office for National Statistics (ONS) yes-
terday.
Exports crept up by 0.2 per cent to
24.46bn, while imports shot up 3.8
per cent to 34.27bn, leaving the
deficit in goods at an unprecedented
9.81bn.
In services for which the UK has a
large surplus -- imports and exports
both fell, by 0.5 per cent and 0.4 per
cent respectively.
The total trade deficit came in at
3.94bn, up from 2.73bn in August.
The total deficit was last higher in
December 2010.
Overall goods exports increased,
but exports to EU countries fell 0.8 per
cent in the month, which economists
blame on the ongoing financial crisis.
The Eurozones stagnation starves
the UK of external demand, said
Philip Rush, an economist at
Nomura.
That said, we are surprised by how
resilient goods exports are proving,
with values up 0.3 per cent over the
third quarter despite the manufactur-
ing PMIs export orders index lan-
guishing well below 50, the no
change mark. The sharp widening in
the deficit was caused by a surge in
imports, which suggests domestic
demand remains relatively resilient
for now.
A further positive sign comes in the
revelation that 500m of the rise in
imports came in semi-manufactured
goods, which require further manu-
facturing and so indicate further
manufacturing activity in the UK.
Trade deficit at record high
BY TIM WALLACE
UK ECONOMY

PwC: UK may
avoid double
dip recession
BY TIM WALLACE
UK ECONOMY

BY TIM WALLACE
CHINESE ECONOMY

NEWS | IN BRIEF
Business sentiment falls in France
French business confidence slipped again
last month, according to Bank of France
data released yesterday. The business
sentiment indicator of industry dropped
from 97 in September to 96 in October,
below the long-term average of 100.
Confidence in the French service sector
fell to 95, down from 96 in September.
US wholesale inventories drop
Wholesale inventories at American retail-
ers fell 0.1 per cent in September, the US
Commerce Department said yesterday,
despite analysts expecting a 0.5 per cent
gain. Sales growth was also lower than
forecast, going to 0.5 per cent from one
per cent in August. The inventory slip
was the first since December 2009.
Augusts level was revised to 0.1 per cent.
Japanese morale index improves
Japans service sector sentiment index
improved slightly for the first time in
three months in October, a Cabinet Office
survey showed yesterday. The sentiment
index rose to 45.9, yet the outlook index
fell to 45.9 from 46.4 the month before,
indicating the loss of confidence in future
conditions.
American mortgage demand rises
US mortgage applications increased 10.3
per cent in the week ending 4 November,
according to the Mortgage Bankers
Association. The increase was driven by
increased refinancing demand as interest
rates dropped, the report said. The rise
was a significant increase in comparison
to the previous week when there was a
more modest 0.2 per cent increase.
News
21 CITYA.M. 10 NOVEMBER 2011
ALLISTER HEATH | CITY A.M.
Rates should be held and QE should not be extended even further. Even though the euro crisis is escalating,
the UK financial system is holding up well. So hold, unless Italy's woes trigger a full-blown banking crisis.
GEORGE BUCKLEY | DEUTSCHE BANK
After a larger and earlier dose of QE than expected last month, the BoE should hold its course until the
75bn of purchases are complete. More may yet be needed if the economy double-dips, but hold for now.
VICKY PRYCE | FTI CONSULTING
Hold but be ready for a cut and for further QE as the Eurozone crisis spreads. October manufacturing and
retail surveys already suggest much weaker growth this quarter after better than expected data last quarter.
VICKY REDWOOD | CAPITAL ECONOMICS
We should continue with the increase in asset purchases that is now underway and stand ready to
increase the programme if, as I expect, the risks of a renewed recession continue to rise.
TREVOR WILLIAMS | LLOYDS TSB
QE is a pre-emptive strike against economic weakness in Europe and the UK. The economy could contract
this quarter, but further QE should only be enacted if inflation falls back sharply by February 2012.
GRAEME LEACH | IOD
The dust needs to settle on last month's MPC decision before considering any further extension in QE. We
think that time will come, but not yet. Any QE extension now might actually undermine confidence.
HOLGER SCHMIEDING | BERENBERG BANK
Hold rates and asset purchases. After a satisfactory third quarter, leading indicators project a renewed reces-
sion for late 2011 and early 2012. QE2 takes this into account, and may need extending if need be.
CITY A.M. | SHADOW MPC VOTES 8-0 TO HOLD
MARCUS SVEDBERG | EAST CAPITAL
TED PIKE | LLOYDS OF LONDON
* These views are those of the individuals above and not necessarily those of their company.
SIMON WARD | HENDERSON
Keep Bank rate at 0.5 per cent and hold gilt purchases in reserve unless monetary trends deteriorate.
Inflation is unlikely to return to target next year and QE2 may contribute to a rebound in 2013.
RateSetter: A better way to Save and Borrow, Peer to Peer
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ANALYSIS l Export figures stay positive
P
M
I

e
x
p
o
r
t

o
r
d
e
r
s
Above 50 = expansion
E
x
p
o
r
t

o
f

g
o
o
d
s
%3m-o3m
PMI export order
Export of goods
Jan09 Jul 09 Jan10 Jul 10 Jan11 Jul 11
70
65
60
55
45
40
35
50
15
10
5
0
-5
-10
ANALYSIS l PwC expects slow GDP growth
Year-on-year
%growth Strong
recovery
Double
dip
Main
scenario
07Q1 08Q1 09Q1 10Q1 11 Q1 12Q1
6
4
2
-2
-4
-6
0
I am quite concerned, but I think when standing
at the cliff policy makers will make the right deci-
sion. But I think it will get worse before it gets
better.
HOW WORRIED ARE YOU ABOUT THE EUROZONE
CRISIS AFFECTING PEOPLE IN THE UK?
Interviews by Phoebe Torrence and Caty Hirst
I understand it is cause for concern, but as we arent
in the Eurozone it wont harm us immediately. Day-to-
day life isnt going to be affected all that much,
although it may influence the bigger picture.
All information is accurate at the time of going to print. Important: due to the fast moving nature of this market, all offers, prices and availability are subject to change. 1Pay monthly prices are subject to credit check and minimumtermof 24 months on selected networks and tariffs.
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INC.VAT PER MONTH1
30 FROM
ENERGY giants Shell and Scottish and
Southern Energy have teamed up on
a project to build a carbon storage
facility aimed at stopping harmful
gases from entering the atmosphere.
The carbon capture and storage
(CCS) technology would be built at
Scottish and Southern Energys gas-
fired plant in Peterhead, Scotland.
It will allow gases to be captured
from the plant to limit the damage to
the environment.
It would be an experimental facili-
ty which if successful could become
widespread across the energy indus-
try.
In May the UK government
announced that the project was one
of the seven UK CCS applications to
the European Investment Bank for
funds. Ian Marchant, chief executive
of SSE, said: If long-term targets for
reducing emissions are to be met,
CCS technology must be applied as
widely as possible.
We therefore welcomed the govern-
ments decision to include gas-fired
generation plants in its CCS demon-
stration programme.
Last month the UK government
said it was scrapping plans for the
countrys first coal-fired power plant
with CCS technology to be estab-
lished at Scottish Powers plant at
Longannet.
Meanwhile SSE said yesterday its
profits for the six months to 30
September dropped 25 per cent to
287.4m as gas and electricity con-
sumption fell.
Energy firms
sign carbon
capture deal
BY JOHN DUNNE AND CATY HIRST
ENERGY

News
22 CITYA.M. 10 NOVEMBER 2011
NEWS | IN BRIEF
E.ON profits take a tumble
Germany's biggest power supplier
E.ON said yesterday its profits
dropped in the first nine months, a fall
triggered by the shutdown of power
plants as part of Germanys policy to
abandon nuclear energy. E.ON said in a
statement its bottom-line net profit
plummeted to 864m (737m) in the
period from January to September
from 3.522bn a year earlier. E.ON
blamed the drop in nine-month earn-
ings to adverse factors including the
early shutdown of several of our
nuclear power stations in Germany,
Germanys nuclear-fuel tax, and contin-
ued margin pressure in our gas whole-
sale business. The German
government is phasing out nuclear
power, forcing energy supplies to shut-
down their profitable large-scale
power plants and also levying a tax on
the reactors fuel for their remaining
lifespan.
Fenner does well from miners
British industrial conveyor belt maker
Fenner posted a rise in full-year profit,
helped by strong demand and acquisi-
tions, and said trading in its core busi-
nesses remained in line with its
expectations. The company, whose
belts are mainly used in the mining
industry, said growing global electrici-
ty demand is leading to an increase in
the amount of coal mined, boosting
demand for Fenners engineered con-
veyor solutions (ECS) products.
Revenue in the ECS division rose 31 per
cent during the year. Total revenue
rose 30 per cent to 718.3m. For the
year ended 31 August, pretax profit
was 69.6m, compared with 37.2m
last year.
ANALYSIS l SSE
p
3Nov 4Nov 7Nov 8Nov 9Nov
1,370
1,350
1,340
1,330
1,320
1,310
1,300
1,360
1,310
9 Nov
WHAT IS CARBON CAPTURE?
Picture: Scottish Centre for Carbon Storage
1. Mining of Fuel 2. Coal- or gas-fired
power station with
CO2 capture plant
1. Mining of Fuel
4. CO2 injection
3. CO2 transport
by pipeline
5. CO2
storage sites
unmineable
coal seams
saline
aquifers
depleted oil
and gas fields
Key
Supercritical
CO2 plume
Buoyant liquid
CO2 plume
open cast
coal mine
shaft mine
Q.
HOW DOES IT
WORK?
A.
It is a strategy to pre-
vent carbon escaping
into the atmosphere. Power plants
collect the carbon and store it in old
gas and oil fields, the ocean or coal
seams.
Q.
CAN IT GENERATE PROFITS?
A.
As companies exceed carbon
quotas they could be forced to
pay companies like SSE to offload
some of their waste. More eco-
friendly companies will have
unused carbon credits to sell.
Q.
WHAT IS THE PROCESS?
A.
The carbon dioxide is com-
pressed into a liquid state which
makes it easy to transport and
deposit or dispose of. The process is
carried out post-combustion which
means the carbon dioxide is cleaned
before being sent away.
Q.
WHAT ARE THE OBSTACLES?
A.
Although the government says it
is keen to push ahead with car-
bon capture, campaigners have
claimed the building of storage cen-
tres could harm wildlife.
Q A
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TULLOW Oil downgraded its produc-
tion forecasts for 2011 and said a well
off the coast of Liberia would not pro-
vide oil in commercial quantities,
disappointing investors on two
fronts.
Tullow, which has a reputation for
opening up new oil basins, is yet to
establish this frontier part of West
Africa as a potential new producing
territory after classifying the
Montserrado well in Liberia as a sub-
commercial discovery.
The firm also revised down its 2011
average production to 79-81,000 bar-
rels of oil per day (bopd), after giving
guidance in August that full-year out-
put would average 82-84,000 bopd,
citing mechanical issues with wells
at the Jubilee field in Ghana.
It is a premium priced stock and
vulnerable to any disappointing well
results, Oriel Securities analysts said
of Tullows scaling back of produc-
tion estimates.
Royal Bank of Canada analyst Al
Stanton said that disappointment
with Montserrado was heightened by
the fact that historically a successful
well for Tullow has been followed by
further successes.
Tullow, whose future production
targets are underpinned by the giant
Jubilee oil field off the coast of
Ghana, said the ramp up to the
120,000 bopd plateau production
level at Jubilee would be delayed
from its previous end-of-year guid-
ance.
Itll be sometime during 2012. It
depends really upon working
through these issues, finance chief
Ian Springett said when asked when
plateau production would be
achieved.
Tullow also said it was still waiting
for a much-delayed deal in Uganda to
complete after predicting in August
that it would conclude in September.
Tullow has also been waiting since
2010 to finalise a deal to bring in new
partners -- French oil major Total and
Chinese group CNOOC -- to start a
$10bn (6.2bn) oil development proj-
ect around Lake Albert.
Tullow hit as
Liberia well
disappoints
BY JOHN DUNNE
OIL

News
23 CITYA.M. 10 NOVEMBER 2011
ANALYSIS l Tullow Oil
p
3Nov 4Nov 7Nov 8Nov 9Nov
1,475
1,450
1,425
1,400
1,375
1,350
1,360.00
9 Nov
NEWS | IN BRIEF
Rockhopper in Falklands boost
British explorer Rockhopper said it made
a second oil discovery in the Falkland
Islands and the same well found more oil
at a known field, raising the likelihood of
the remote territory being transformed
into a new oil producing region. The well
made a new discovery at the Casper
prospect, indicating a separate reservoir
exists alongside the Sea Lion field, and
was also drilled into the Sea Lion field
and found that it was bigger than previ-
ously thought, chief executive Sam
Moody said in a statement. "This, com-
bined with the Casper discovery will, we
believe, have a very positive impact for
our low case volumes in place on our
acreage," he added. Rockhopper had said
in August that there could be 608m bar-
rels of oil in place at Sea Lion in a low
case estimate.
Vestas ditches 2015 targets
Vestas, the worlds biggest wind turbine
manufacturer, yesterday dropped its
long-term financial goals and pledged to
cut costs and jobs as it struggles with
weak demand for wind power. The
Danish company, which confirmed third-
quarter losses and a weakened full-year
outlook given in a profit warning late last
month, dropped its 2015 targets.
Marks Sattin
The specialist accountancy and finance
recruiter has appointed Paul Collier as
UK & Ireland regional director. Collier
was promoted internally from director
of commerce and industry in London.
Smith & Williamson
Smith & Williamson Investment
Management has hired Julian Polnik as
head of the broker desk for its pooled
funds business, effective from 14
November. Polnik joins from Close
Brothers, where he held a similar role.
Towers Watson
The professional services firm has
strengthened its international consulting
group in London by appointing benefits
financing specialist Barry Perkins.
Perkins joins from HSBC, where he was
most recently a senior manager in the
group insurance risk arm.
Miroma
The media and B2B barter company has
appointed Sir David Michels, deputy
chairman of Marks & Spencer and
Christopher Mackenzie, the chairman of
oil services firms Borets and OGS, as
non-executive directors.
F&C Thames River
Torquil Wheatley has been appointed as
product and performance manager in
the multi-alternative team. He joins
from Deutsche Bank, where he was
director, GFFX global markets structur-
ing and head of currency solutions for
pension funds and insurers.
Mizuho Corporate Bank
Neil Barclay has been appointed as
co-head of loan capital markets at
Mizuho Corporate Bank. Barclay, who
joins from Barclays Capital, will be
jointly responsible for the syndicated
loan product in the EMEA region,
reporting to David Yeoman, head of
EMEA syndications.
Old Mutual Asset Managers
The find manager has hired Anthony
Pickering as client and sales director
responsible for Non-UK institutional busi-
ness. He joins from AllianceBernstein,
where he was director of client relations.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
DLA Piper
Tony Angel, the former firm-wide managing
partner of Linklaters, has joined DLA Piper as
global co-chairman and senior partner of the
international law firm. He will serve alongside
global chairman Francis B Burch Jr and work
with the firms chief executives Sir Nigel
Knowles and Lee I Miller. Following his tenure at
Linklaters between 1998 and 2007, Angel
served as executive managing director and head
of EMEA at Standard & Poors, where he was a
member of the global operating committee.
News
24 CITYA.M. 10 NOVEMBER 2011
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Weir Group PLC
2,100
1,900
1,700
1,500
Sep Oct Nov
p
1,887.00
9 Nov
WEIR GROUP
Goldman Sachs rates the engineering compa-
ny as a buy with a target price of 3,100p
and marginally increases its 2012/13 earn-
ings per share forecasts to reflect the bro-
kers increasing confidence that Weirs joint
ventures will begin to yield growing prof-
itability. Key downsides for the group are
weaker volumes, slower-than-expected eco-
nomic recovery, raw material costs and
value-destructive M&A.
ANALYSIS l Rentokil Initial PLC
72
68
70
66
64
Sep Oct Nov
p
64.75
9 Nov
RENTOKILL
JP Morgan rates the cleaning-to-pest-control
firm as underweight with a target price of
65p following third quarter results and an
investor seminar. To account for a worse per-
formance by its City Link division the broker
has reduced its earnings per share for 2011
by eight per cent, and assumes the company
will not resume its dividend this year. The
broker does not expect a return to profitabili-
ty for City Link until the second half of 2012.
ANALYSIS l Taylor Wimpey PLC
35.00
37.50
32.50
30.00
Sep Oct Nov
p
37.18
9 Nov
TAYLOR WIMPEY
Deutsche Bank rates the housebuilder as a
buy and a target price of 55, after the
company reported a brief but robust man-
agement update. The broker says the key fig-
ure is the stronger than expected selling rate
per site of 0.55, compared to 0.51 estimate.
TW has an order book that already incudes
15-18 per cent of private orders for next year,
which should help build confidence in the
resilience of demand.
Wall St down
on Euro fears
U
S STOCKS tumbled three per
cent yesterday in the market's
worst day since mid-August as a
spike in Italian bond yields sig-
nalled the European debt crisis had
worsened.
All 10 S&P sectors were down, but
S&P financials were the hardest hit on
worries about European exposure,
dropping 5.4 per cent.
US stock markets have grown more
chaotic in response to rising volatility
in European debt markets, and
investors have trouble keeping up with
a steady stream of headlines and pric-
ing in how the crisis might play out.
The market has turned into a deriv-
ative of whats happening in Europe,
said Craig Hodges, president at Hodges
Capital Management in Dallas, Texas.
The Dow Jones industrial average
was down 389.24 points, or 3.20 per
cent, at 11,780.94. The Standard &
Poors 500 Index was down 46.82
points, or 3.67 per cent, at 1,229.10.
The Nasdaq Composite Index was
down 105.84 points, or 3.88 per cent, at
2,621.65.
General Motors slid 10.9 per cent to
$22.31 after the automaker said it
would not break even for the year in
Europe.
B
RITAINS top shares sank to their
lowest close for a week yesterday
on spiralling concerns over
Italys debt as the countrys bond
yields raced to dangerous levels.
Italy was thrown into the spotlight
as its 10-year bond yields shot above
seven per cent, levels that forced
bailouts in Ireland, Portugal and
Greece, and as investors dumped the
debt after a clearing house increased
margin calls.
The spike in yields came in spite of
European Central Bank buying.
Silvio Berlusconis pledge to step
down as Italys prime minister failed
to calm markets.
Financials came under severe pres-
sure, with HSBC, Royal Bank of
Scotland and Barclays all left nursing
drops of more than five per cent, as
investors worried the sectors exposure
to Europes debt crisis could cost them
dear.
HSBCs fall was also driven by a larg-
er-than-expected drop in third-quarter
profits for Europes biggest bank.
When European leaders agreed
their most recent bailout package, the
deal imposed 50 per cent losses on pri-
vate sector Greek bondholders. Italy
could be a different story.
Im not sure that they (markets,
banks) could afford to take a substan-
tial haircut on the worlds fourth
biggest bond market, Darren Sinden,
trader at Silverwind Securities, said.
The UK benchmark closed down
106.96 points, or 1.9 per cent, at
5,460.38, its lowest close since 1
November, erasing the previous ses-
sions one per cent gain, and having
opened almost one per cent higher.
Heading the list of fallers, car insur-
er Admiral dived 25.6 per cent after it
warned its full-year profits would be
hit by big claims.
Shore Capital cut back its EPS fore-
casts for Admiral for 2011 and 2012 by
up to eight per cent and reduced its
dividend estimates for the same years
by up to 7.3 per cent.
FTSE falls as Italy debt
yields spook investors
THELONDON
REPORT
THENEW YORK
REPORT
5Sep 15Aug 23Sep 13Oct 2Nov
5,800
5,400
5,200
5,000
5,600
ANALYSIS l FTSE
5,460.38
9 Nov
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W
HEN private equity firm NPM Capital
and the current management
bought out a sleepy Dutch carpet
manufacturer called Desso in 2007,
they were seeking to do what all successful
investors do: to find a gap in the market from
which they could profit. And profit they have.
Following the buy out, Dessos market share
rose from 15 to 23 per cent and its profit mar-
gins have climbed to almost 10 per cent. As
well as selling a whole lot of carpet tiles, it has
fixed the problem that was the Wembley
pitch, and supplied the playing surfaces for a
host of Premiership clubs including Arsenal
and Liverpool.
How have they done it? Relentless innova-
tion. Inspired by the ecological cradle to cra-
dle philosophy of American architect Michael
Braungart and German chemist William
McDonough, the new chief executive Stef
Kranendijk set about making Dessos produc-
tion a closed-loop system allowing the mate-
rials used in the carpet tiles it manufactures to
be continuously and safely recycled. This con-
scious even ostentatious commitment has
provided a spur and a focus for product inno-
vation.
It was management guru Charles Handy
who said that a good business is a community
with a purpose. As Kranendijks sense of mis-
sion has permeated the whole company, it has
fostered a more engaged and happy workforce.
It has opened up new markets, and distin-
guished the brand in old ones. It has become
the companys key source of competitive
advantage.
The new owners took a company that had
unrealised potential. They transformed its
focus, its operations, its entire sense of itself.
In doing so, they have transformed its per-
formance. People talk about profit with pur-
pose. Here, purpose has been the route to
profit.
There are many examples of UK companies
leading the world in fields from biotech to
business services, and from architecture to
advanced manufacturing. Innovative compa-
nies, building value for the long term. To pay
its way in the future, the UK will need more
businesses like this: able to succeed in tough
global markets, out-competing not just lower-
cost Chinese firms, but higher-value ones like
Desso, too.
There is a lively debate among UK business
leaders, commentators and academics about
which business models can create, build and
sustain market leading companies. The partic-
ular answers will differ from sector to sector
and market to market. But from Andrew Witty
at GSK to Dalton Philips at Morrisons, business
leaders across all sectors of our economy are
demonstrating how purpose is increasingly
important to how you deliver profit.
Desso shows that this is not a matter of good
intentions placed ahead of good business. The
work of Harvard Business School professors
Michael Porter and Mark Kramer on shared
value creating economic value in a way that
also creates value to society by addressing its
needs and challenges draws on examples
from some of capitalisms most hard-nosed
exponents, from GE and Google to Unilever
and Wal-Mart.
Businesses that are already pursuing these
kinds of long-term, value-creating, socially
responsible strategies are doing so because it
makes good business sense. But the policy
environment the rules of the game does
not always encourage and support these choic-
es. The challenge for policy makers is to create
the framework so that business which is most
socially valuable and economically sustainable
is also most profitable.
In myriad ways, government policy shapes
the environment in which businesses choose
their strategies. From procurement to taxation,
from the availability of long-term finance to the
regulatory regime, government policy can
make a vital difference. In contrast to the impo-
tent hand-waving of this government, the next
Labour government will use every tool at its dis-
posal to support innovative businesses, large
and small, building value for the long term.
With the economy stagnating, shops board-
ed up on every high street and unemployment
at its highest level for 17 years, it is clear the
governments economic policies arent work-
ing. It should adopt a more responsible deficit
reduction strategy, implement Labours five
point plan for growth including a one year
national insurance tax break for every small
firm which takes on extra workers and get
our economy moving again. But we aspire to
even more. We must lay the foundations for
the transformed economy our future success
depends on: competitive abroad, fair at home,
and underpinning the society we want to see.
The British people and British businesses
deserve nothing less.
Chuka Umunna is the shadow business secretary
and Labour MP for Streatham.
26
The Forum
CITYA.M. 10 NOVEMBER 2011
It was management guru
Charles Handy who said
that a good business is a
community with a purpose
Labours plan for business:
Government should unite
profit with social purpose
cityam.com/forum
CHUKA UMUNNA
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.
27
If moonshine was
legalised, demand
would be dulled
Prohibition fuels
firestorm of new
dangerous drugs
I
N THE restless pursuit of pleasure, human
beings will try almost any substance
when circumstances require. During pro-
hibition, Americans resorted to drinking
toxic moonshine and inhaling ether. Second-
rate substitutes and legal highs are seldom as
pleasant as the real thing and are sometimes
more dangerous, but at least you dont have to
worry about getting arrested.
The designer drugs that have swept Europe
in the last two decades are the modern equiva-
lent of moonshine, aided by the growth of the
internet and the waning purity of ecstasy pills.
Between 2003 and 2008, the MDMA content of
ecstasy fell from 67 per cent to 33 per cent at a
time when illicit chemists were synthesising
dozens of new recreational substances.
Ketamine, GHB, GBL, BZP and mephedrone all
generated their own minor moral panics and
were banned, only to be replaced by the likes
of naphyrone, MDAI and Ivory Wave. More will
follow. Twenty-four new legal highs were syn-
thesised in 2009, with a further thirty-three
appearing in 2010.
Although billed as party drugs, these
chemicals often have little in common.
Clubbers might use them interchangeably but
mephedrone (Meow Meow) and BZP are stimu-
lants, while GHB and ketamine are heavy seda-
tives. Different in nature and unpredictable in
potency, users are vulnerable to overdose.
Naphyrone (NRG-1) is active at just 20 mil-
ligrams while mephedrone is active at 200 mil-
ligrams. Since naphyrone was touted as the
new Meow Meow when it appeared in 2010,
users were liable to take ten times the safe
dose. Some did.
Despite immense efforts by police, customs
officers and legislators, there has been no
decline in the nations consumption of illicit
chemicals since the ecstasy panic peaked fif-
teen years ago. What we have instead is an
ever-widening menu of narcotics about which
users and authorities know little.
One proposed solution is to introduce a law
similar to the USAs Analog Act which auto-
matically bans drugs which are substantially
similar to banned substances. The idea is
tempting in its simplicity, but this Nixon-era
legislation is too vague to be legally useful and
has rarely been invoked. The grey market con-
tinues to be one step ahead of legislation.
An alternative solution was proposed last
week by Dr James Bell, of the South London
and Maudsley NHS Foundation Trust, who
suggested abandoning the unwinnable war
against chemistry in favour of legalisation. All
calls for drug liberalisation fall on stony politi-
cal ground and Bells was no different, but
there would be no better way of stopping the
flood of dubious chemicals than a regulated
free market. These drugs are nobodys first
choice. BZP was originally a worming tablet
for cattle. Ketamine was a veterinary anaes-
thetic. GBL was a superglue remover. In all like-
lihood, that is what they would have remained
had ecstasy not been banned.
Nobody made 80 per cent proof gin in their
bathtubs after prohibition was repealed in
1933. Instead, Americans turned from distilled
spirits to beer, the number of alcohol poison-
ings fell and the murder rate subsided. There
is a lesson there for those fighting against nar-
cotic moonshine today.
Chris Snowdon is an author and freelance journal-
ist. His latest book is The Art of Suppression: Pleasure,
Panic and Prohibition Since 1800.
Curing Japan
AS A seasoned Japanese busi-
ness professional, David Crows
article [The Japanese disease,
yesterday] made me smile with
agreement, saddened with frus-
tration and duty-bound to build
upon its analysis.
I commend Crows accurate
observation of our cultural traits,
but I would ask why character-
istics which once made Japan
great now fail to serve us well.
What is urgently needed for
Japan PLC is not a change in the
customs which define its funda-
mental makeup, or the piece-
meal modification of methods
but a fresh management mind-
set, comprising unflinching
integrity, openness and adapt-
ability, to help them operate and
communicate better at an inter-
nationally acceptable level.
I hope Japan PLC is truly open
for global business.
Honami Matsutani, director,
Business Development and
Consulting, CAC Europe
At a loss over tax
The German finance minister
plans to press on with an EU
Tobin tax. We already knew this
pointless levy would lose more
money than it raises. Now we
learn that it would be both a tax
on pensioners and a jobs-killer to
the tune of 1m unemployed. How
can the Germans and my Labour
and Liberal Democrat colleagues
in the European Parliament con-
tinue to support it?
Marina Yannakoudakis,
Conservative MEP for London
RAPID RESPONSES
CHRIS SNOWDON
BY ANTHONY BROWNE
CITYA.M. 10 NOVEMBER 2011
The Forum
T
HE finger of
blame usually
points away, but
sometimes we
should turn it round,
and point it at our-
selves. As individuals,
societies and countries
we are more often than
we normally realise the architect of our own prob-
lems.
Greeks dont like paying taxes and love early pen-
sions, and end up with a bankrupt government. The
Italians like flamboyance, and end up with
Berlusconi. As a society, we are very relaxed about
welfare dependence, and end up with too much of
it. We suffer spineless self-doubt about capitalism,
and end up with incoherent anti-capitalist encamp-
ments blighting our city. Whether we like it or not,
in so many walks of life, we usually get what we
deserve. And the brutal fact is the EU and EU
leaders are getting the crisis they deserve. They
are determined to harmonise with one-size-fits-all
policies like the euro, and end up with countries
exploding to get out.
Nothing illustrates the problems we have as a
union better than the way it is responding to the
crisis. EU members are lining up to file for bank-
ruptcy, and the European Parliament and European
Commission respond by demanding a massive
budget increase that EU countries must pay. The
euro implodes causing global economic chaos and
the EU shows a lack of leadership that ensures the
crisis just gets worse. And what do EU finance min-
isters discuss? How to introduce a financial trans-
action tax. This isnt fiddling while Rome burns. This
is playing with petrol and spraying it all about while
the world around goes up in flames. Forget the fact
that this tax on pensions would ruin Europes com-
petiveness, shrink its economy and cost a 1m or
more jobs, and that the only good thing about it is
that it has no chance of coming into existence.
Rather, this is a pure example of the architects of
the euro, who are the ones pushing this misbegot-
ten tax, pointing their finger at others when they
should point it at themselves.
The euro crisis was caused by the inherent con-
tradictions of a one-size-fits-all currency, and the
moral hazard of EU governments thinking they
could borrow as though there is no tomorrow
because someone else will pick up the tab. Instead
of confronting their own shortcomings that have
brought Europe to the brink, European leaders are
trying to blame financial markets, which had noth-
ing to do with it. This finger pointing extends to the
UK rude accusations are being noisily shouted at
this island in the Atlantic, largely because we
refused to sign up to the euro-mess.
You can see why George Osborne, the chancellor,
got frustrated this week with his fellow European
finance ministers, telling them they had better
things to discuss than a new job-destroying tax
that has no chance of not being vetoed. This would
be funny if it wasnt so serious. If EU leaders per-
sistently refuse to confront the genuine cause of
their problems, and instead scapegoat others, then
they will fail to learn the lessons necessary to
ensure we dont end up here again. It is like an alco-
holic who blames the wine shop for his drinking
problem until he realises it is himself who has the
problem, he wont be able to do anything about it.
The European political system is in denial. It is time
they stopped pointing at others, and instead point-
ed at themselves.
Anthony Browne is former director of Policy
Exchange: anthony@anthonybrowne.org
Europe needs to admit
that it has a problem
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
Henderson Global Investors is the name under which Henderson Global Investors Limited (reg. no. 906355), Henderson Fund Management Limited (reg. no. 2607112),
Henderson Investment Funds Limited (reg. no. 2678531), Henderson Investment Management Limited (reg. no. 1795354), Henderson Alternative Investment Advisor Limited
(reg. no. 962757), Henderson Equity Partners Limited (reg. no.2606646), (each incorporated and registered in England and Wales with registered office at 201 Bishopsgate,
London EC2M 3AE), Gartmore Investment Limited (reg. no. 1508030), Gartmore Fund Managers Limited (reg. no. 1137353), (each incorporated and registered in England and
Wales with registered office 201 Bishopsgate, London, EC2M 3AE) are authorised and regulated by the Financial Services Authority to provide investment products and services.
top brands
can be a puzzle...
Investing in Europes
Investment trusts, managed by Henderson
www.hendersoneurotrust.com
Henderson EuroTrust plc
2010/11 2009/10 2008/09 2007/08 2006/07
Share Price (Total Return) -4.1% -1.2% 25.2% -15.6% 13.3%
Net Asset Value (Total Return) -9.5% 7.6% 17.1% 7.6% -9.5%
Source: All data sourced from Morningstar as at 30 September 2011,
unless otherwise stated. The latest data is available on our website.
Annual Growth to 30 September 2011
Ref: HNECA-02
The facts youll want to know
Henderson EuroTrust plc was voted the best
European Investment Trust by both Money
Observer and Moneywise Investment Trust
Awards 2009.
A proven investment philosophy is consistently
applied, comprised of a high-conviction portfolio
of good quality European companies generally
brought and held over the medium to long term.
This Trust has a highly experienced
management team led by a manager who has
led this Trust successfully for over 16 years.
Please remember that past performance is not
a guide to future performance.
Henderson EuroTrust gives investors access to some
of Europes blue chip brand names like Deutsche Post
and Ericsson which can offer great potential, especially
when they appear undervalued in light of their growth
prospects, or due to structural change.
Henderson EuroTrust can give you access to such
companies, whilst aiming for a superior total return from
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Investing in the Trust brings you access to a focused
portfolio of around 50 mid to large sized well known
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long-term capital growth, through the skills of an
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manager throughout the last 16 successful years.
Please remember that past performance is not a guide
to future performance. The value of an investment and
the income from it can fall as well as rise as a result of
market and currency fluctuations and you may not get
back the amount originally invested.
This portfolio may hold only 40-60 stocks. If one of
these investments declines in value, this can reduce the
portfolio's value more than if it held a larger number of
investments. Investors need to be aware of exchange
rates. Investors need to be aware of exchange rates.
Most of the investments in this portfolio are not made
in Sterling, so exchange rates could affect the value of
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the investment carries greater risk than a more
internationally diversified portfolio.
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...but Henderson
provided me
with the solution.


Donata Huggins gets the lowdown on life assurance
policies from MoneySupermarkets expert Darren Pickersgill
O
NE child in 20 has a parent die
before they finish full-time
education, says Money Saving
Expert. Thats a pretty frighten-
ing statistic, but its even more fright-
ening when you then find out that
more than half of the population
doesnt have life insurance.
So why are so many people choos-
ing not to take out life insurance? 31
per cent of people do not to take out
life insurance because they dont ben-
efit from it personally. In fact people
in the UK are so laid back about
future planning for their loved ones,
34 per cent of people say that cover-
ing their possessions is more impor-
tant than covering their lives.
Matthew Lloyd, head of life insur-
ance at Confused.com, said: Its wor-
rying that people are blaming cost for
not having any life insurance when
they spend so much money on other
things, which are arguably less
important than future planning.
While this is not a comfortable
thought, surely leaving your loved
ones in a financial mess is far nastier?
For this reason, we asked Darren
Pickersgill, MoneySupermarkets life
insurance expert to put together this
short introduction.
Q: WHAT ARE THE MAIN TYPES OF LIFE
ASSURANCE?
A: There are four main types:
l Decreasing term assurance. This is
designed to protect a repayment
mortgage with a lump sum. Make
sure the term and sum assured
match your mortgage balance and
term to be sure you are adequately
covered.
l Level term. This will pay out a fixed
lump sum. Best suited to leave a lump
sum to protect your familys standard
of living or protect an interest-only
mortgage.
l Over 50s plan. This will pay out a
lump sum, but doesnt have a term.
Its a good product to cover funeral
expenses, for example.
l Family income benefit plan. This
will pay out a monthly benefit,
instead of a lump sum, which some
people may prefer.
Q: WHAT SHOULD YOU LOOK OUT FOR?
A: Most policies should include termi-
nal illness cover.
Some policies may also come with
bereavement cover, which offers help
and support to your loved ones if they
were to claim on your policy.
Guaranteed insurability options
allow you to amend your policy in cer-
tain circumstances without consider-
ing your current health.
Other considerations include
whther to add indexation on your
level term policy which will protect a
lump sum against inflation by
increasing the benefit on an annual
basis.
Also, including waiver of premium
on your term assurance policy will
pay your premiums for you if you are
unable to work (usually after six
months of illness).
Q: WHAT ARE THE MAIN THINGS THAT
MAKE THE PRICE OF LIFE INSURANCE
VARY?
A: Being overweight, a heavy smoker
or excessive drinking, for example,
could lead to an increase in premi-
um, as would having a job that
involves working at height or using
heavy machinery. Conditions such as
high blood pressure, cholesterol, or
asthma, for example, could also affect
your premium, while more serious
conditions such as having a heart
attack or cancer may lead to no cover
being offered at all. Age, gender and
smoker status, alongside the sum
assured, term of the policy and policy
type (i.e. decreasing or level term) are
the main variables required in order
to generate a standard life assurance
quote. However, health and lifestyle,
higher risk occupations, hazardous
pursuits and travel to higher risk
countries can all have an impact on
the cost of a policy.
Q: WHAT ARE THE BEST WAYS TO GET
GOOD VALUE FOR MONEY ON YOUR
POLICY?
A: The best way to get value for money
is to speak to an adviser, who should
help you get protected in the most
suitable and cost effective way.
However, if youre confident you
know what you want from a policy
you can shop around to look for a bet-
ter deal. Ensure all information pro-
vided is accurate to limit the chance
of any claim being turned down.
Also, if you think there may be any
health or lifestyle implications that
could affect your policy, speak with a
trained adviser who can research the
most appropriate provider for you
based on their underwriting criteria
to find you the best deal.
Making sure you have
got your family covered
28
Wealth Management| Personal Finance
Shelter your
loved ones
Picture: GETTY
T
HOUGH the debates and politi-
cal squabbling will continue to
rage on in the gilded offices of
politicians and central
bankers, we have reached the point
where many will be looking at the
practical side of a return of one or
more of the old European currencies.
But which will be the first to fall?
The decapitated states of Italy and
Greece are the most likely candi-
dates.
In Barclays Capitals Tuesday
Credit Call, it gave a damning judg-
ment of the state of Italys debts.
According to Barclays Capital econo-
mists: At this point, Italy may be
beyond the point of no return. They
suggested that the ECB needed to
intervene by printing money in order
to buy up Italian bonds. However
when the ECB intervened in markets
yesterday, the positive effects on the
Italian bond yields had a shorter life
than the froth on a cappuccino.
Barclays highlighted 5.5 per cent as
being the point of no return, but 10-
year bond yields continued to soar
above 7 per cent.
Italy is seen by many as being too
big to fail and too big to save. As the
third largest bond market in the
world, it is unthinkable that it would
be able to leave the euro.
On the other hand, it is hard to
envisage Greece still using the euro
in 12 months time. Whether it is
pushed or it jumps, its future as part
of the European single currency
experiment appears to be nigh on
doomed.
MECHANICS OF A RETURN
As the liabilities of the stricken
peripheral Eurozone countries are
denominated in euros, they would
have to deal with the difficulty of re-
denominating the claims into the
new national currency a move that
would be very difficult to impose.
According to Stephen Gallo, head of
market analysis for Schneider FX,
this would be hard to put in place,
even in the event of capital controls
and other controls on moving money
in and out of the individual coun-
tries. For the cleanest possible return
to the old currencies, Gallo says that:
The best we could hope for is the
equivalent effect of a string of sover-
eign defaults across most of the
south of the Eurozone area. Gallo
adds: I doubt very much that you
could organise a return to the
national currencies in a way that
would be anything other than
extremely messy.
DOING IT WITH MODELS
Given the sheer scale of the task that
a return to the drachma, or indeed
any other of the former European
currencies would entail, many insti-
tutions say that they have yet to sit
down and put together atrading
strategy for this eventuality. But
Geoffrey Yu, director of foreign
exchange strategy for UBS has
sketched out the direction that an
orderly re-peg of a currency would
take, based on prior examples: I
assume that there would be a rate at
which the Greek drachma would
begin trading against the euro,
though it would likely be very differ-
ent from the entry rate, to prevent
everyone from squeezing through
the door at the same time.
According to Yu, this model would be
the equivalent of a 60-80 per cent net
present value reduction in Greek
debt.
TRADING THE RESULT
So how would you trade the new cur-
rency? Given the state of the Greek
economy, the government would
need to flood the market with drach-
mas, giving FX traders huge opportu-
nities. if the drachma is not pegged
to the euro, going long euro against
the drachma would be an excellent
buying opportunity, as would both
going long Japanese yen and going
long Swiss franc, says Christopher
Vecchio, currency analyst for FXCM.
Veccio points out that the drachma
would fall against every other major
currency: Looking back at previous
examples, it is clear that new curren-
cies always lose value rapidly, and
there is nothing to suggest that this
would not also be the case here.
It is also unlikely that European
authorities would simply let Greece
slip out into the night, taking its
debts with it. If the other member
states were to put trade restrictions
into place, if would hit the Greek
export market and in turn stunt any
growth. According to Vecchio, if this
happens we would see a positive feed-
back loop, whereby the Greek govern-
ment would have to flood the market
with even more drachma, devaluing
the currency further.
As the European crisis progresses,
it will be interesting to see which
institutionas start to make real, con-
crete plans in preparation for this
event.
Whatever the political fallout for a
country leaving the euro, the oppor-
tunities that it will present for those
in the forex markets to make or lose
a lot of money very quickly will be
huge.
Maybe outgoing Greek prime min-
ister George Papandreou will spend
his retirement shorting the drachma.
Modelling a
return to the
old currencies
Craig Drake looks at how institutions
would apprach the effects of a country
taking the decision to leave the euro
Our expertise your edge
We have teams dedicated to providing you with access, insight
and return across an advanced product suite in FX, Rates, Bonds
and Credit, from simple to complex, from voice to electronic we
can provide the risk management and structuring expertise you
need to navigate todays markets.
Contact us at csales@commerzbank.com
www.cbcm.commerzbank.com
Achieving more together
Corporates & Markets
What I need is to understand
how to benet from a
changing Euro
We may see
Greeks returning
to not paying their
taxes in drachma,
rather than euros
Picture: REX
29
Wealth Management| Institutional FX
LON GD ONCE FIX AM...........1780.00 -14.00
SILVER LDN FIX AM ..................34.66 -0.06
MAPLE LEAF 1 OZ ....................37.05 0.70
LON PLATINUM AM................1651.00 -10.00
LON PALLADIUM AM...............662.00 -10.00
ALUMINIUM CASH .................2092.00 -25.00
COPPER CASH ......................7820.00 45.00
LEAD CASH...........................1995.00 20.00
NICKEL CASH......................18560.00 -45.00
TIN CASH.............................22195.00 295.00
ZINC CASH ............................1952.00 41.00
BRENT SPOT INDEX................113.78 1.99
SOYA .....................................1185.00 -19.50
COCOA..................................1613.00 -39.00
COFFEE...................................233.45 0.60
KRUG.....................................1848.00 4.00
WHEAT ....................................154.00 -0.50
AIR LIQUIDE........................................88.64 -1.56 100.65 80.90
ALLIANZ..............................................72.25 -3.77 108.85 56.16
ANHEUS-BUSCH INBEV ....................41.55 0.66 45.11 33.85
ARCELORMITTAL...............................13.95 -0.82 28.55 10.47
AXA......................................................10.06 -0.52 16.16 7.88
BANCO SANTANDER...........................5.57 -0.14 9.20 5.05
BASF SE..............................................49.97 -0.82 70.22 42.19
BAYER.................................................45.76 -0.80 59.44 35.36
BBVA......................................................5.92 -0.16 9.17 4.94
BMW ....................................................56.84 -1.58 73.85 43.49
BNP PARIBAS.....................................30.68 -0.64 59.93 22.72
CARREFOUR ......................................19.24 -0.41 34.12 14.66
CRH PLC .............................................12.70 -0.32 17.40 10.28
DAIMLER.............................................33.61 -0.67 59.09 30.52
DANONE..............................................48.70 -0.36 53.16 41.92
DEU.BOERSE OFFRE ........................40.44 -0.19 55.75 35.46
DEUTSCHE BANK..............................27.30 -1.25 48.70 20.79
DEUTSCHE TELEKOM.........................8.79 -0.23 11.38 7.88
E.ON.....................................................16.29 -0.29 25.54 12.50
ENEL......................................................3.15 -0.18 4.86 2.81
ENI .......................................................15.68 -0.30 18.66 11.83
FRANCE TELECOM............................12.36 -0.25 17.27 11.12
GDF SUEZ ...........................................20.08 -0.57 30.05 18.32
GENERALI ASS...................................12.20 -0.46 17.05 10.34
IBERDROLA..........................................4.81 -0.14 6.50 4.29
INDITEX ...............................................64.24 -0.54 69.40 50.92
ING GROEP CVA...................................5.54 -0.53 9.50 4.21
INTESA SANPAOLO.............................1.15 -0.05 2.47 0.85
KON.PHILIPS ELECTR.......................14.23 -0.58 25.45 12.01
L'OREAL..............................................77.43 -0.61 91.24 68.83
LVMH..................................................114.60 -1.35 132.65 94.16
MUNICH RE.........................................88.13 -4.31 126.00 77.80
NOKIA....................................................4.76 -0.12 8.49 3.33
REPSOL YPF.......................................22.20 -0.04 24.90 17.31
RWE.....................................................28.06 -0.70 55.88 21.22
SAINT-GOBAIN...................................30.90 -0.87 47.64 26.07
SANOFI ................................................48.98 -0.63 56.82 42.85
SAP......................................................43.70 -0.69 46.15 32.88
SCHNEIDER ELECTRIC.....................39.20 -1.19 61.83 35.94
SIEMENS .............................................72.36 -0.97 99.39 62.13
SOCIETE GENERALE.........................18.20 -0.57 52.70 14.32
TELECOM ITALIA..................................0.83 -0.04 1.16 0.70
TELEFONICA ......................................13.89 -0.26 18.75 12.50
TOTAL..................................................37.22 -0.35 44.55 29.40
UNIBAIL-RODAMCO SE...................134.90 -4.10 162.95 124.05
UNICREDIT............................................0.75 -0.06 2.03 0.64
UNILEVER CVA...................................24.39 -0.37 25.13 20.90
VINCI ....................................................32.65 -1.47 45.48 29.49
VIVENDI ...............................................15.41 -0.52 22.07 14.10
VOLKSWAGEN VORZ ......................124.95 -2.00 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5460.38 -106.96 -1.92
FTSE 250 INDEX . . . . . . . 10268.87 -150.47 -1.44
FTSE UK ALL SHARE . . . . 2815.69 -52.84 -1.84
FTSE AIMALL SH . . . . . . . . 723.85 -6.58 -0.90
DOWJONES INDUS 30 . . 11780.94 -389.24 -3.20
S&P 500 . . . . . . . . . . . . . . . 1229.10 -46.82 -3.67
NASDAQ COMPOSITE . . . 2621.65 -105.84 -3.88
FTSEUROFIRST 300 . . . . . . 966.22 -17.58 -1.79
NIKKEI 225 AVERAGE. . . . 8755.44 99.93 1.15
DAX 30 PERFORMANCE. . 5829.54 -131.90 -2.21
CAC 40 . . . . . . . . . . . . . . . . 3075.16 -68.14 -2.17
SHANGHAI SE INDEX . . . . 2524.92 21.08 0.84
HANG SENG. . . . . . . . . . . 20014.43 335.96 1.71
S&P/ASX 20 INDEX . . . . . . 2621.40 0.00 0.00
ASX ALL ORDINARIES . . . 4406.20 0.00 0.00
BOVESPA SAO PAOLO. . 57549.74-1476.39 -2.50
ISEQ OVERALL INDEX . . . 2661.55 -25.71 -0.96
STI . . . . . . . . . . . . . . . . . . . . 2778.97 34.80 1.27
IGBM. . . . . . . . . . . . . . . . . . . 835.56 -17.90 -2.10
SWISS MARKET INDEX. . . 5607.85 -74.80 -1.32
Price Chg %chg
3M........................................................79.00 -2.83 98.19 68.63
ABBOTT LABS ...................................52.94 -1.32 55.61 45.07
ALCOA ................................................10.20 -0.58 18.47 8.45
ALTRIA GROUP..................................27.17 -0.48 28.14 23.20
AMAZON.COM..................................211.22 -6.77 246.71 156.77
AMERICAN EXPRESS........................49.21 -2.13 53.80 41.25
AMGEN INC.........................................57.51 -0.49 61.53 47.66
APPLE...............................................395.28 -10.95 426.70 297.76
AT&T....................................................28.91 -0.55 31.94 27.20
BANK OF AMERICA.............................6.16 -0.37 15.31 5.13
BERKSHIRE HATAW B.......................75.40 -2.76 87.65 65.35
BOEING CO.........................................64.55 -2.10 80.65 56.01
BRISTOL MYERS SQUI ......................30.97 -0.76 33.27 20.05
CATERPILLAR....................................91.64 -4.25 116.55 67.54
CHEVRON.........................................104.28 -4.58 110.01 80.41
CISCO SYSTEMS................................17.61 -0.70 24.60 13.30
CITIGROUP.........................................28.85 -2.57 51.50 21.40
COCA-COLA.......................................67.03 -1.62 71.77 61.29
COLGATE PALMOLIVE......................87.45 -1.99 94.89 74.86
CONOCOPHILLIPS.............................70.22 -2.52 81.80 58.65
CVS/CAREMARK................................38.39 -0.65 39.50 29.45
DU PONT(EI) DE NMR........................47.59 -2.22 57.00 37.10
EXXON MOBIL....................................77.39 -2.37 88.23 63.47
GENERAL ELECTRIC.........................15.85 -0.63 21.65 14.02
GOOGLE A........................................600.95 -11.39 642.96 473.02
HEWLETT PACKARD.........................26.33 -1.51 49.39 19.92
HOME DEPOT.....................................37.16 -0.78 39.38 28.13
IBM.....................................................182.24 -5.01 190.53 141.18
INTEL CORP .......................................23.84 -0.91 26.78 19.16
J.P.MORGAN CHASE.........................32.54 -2.48 48.36 27.85
JOHNSON & JOHNSON.....................63.53 -1.33 68.05 57.50
KRAFT FOODS A................................34.76 -0.72 36.30 24.30
MC DONALD'S CORP ........................92.65 -1.95 95.45 72.14
MERCK AND CO. NEW......................33.79 -0.68 37.65 29.47
MICROSOFT........................................26.20 -0.96 29.46 23.65
OCCID. PETROLEUM.........................96.51 -4.78 117.89 66.36
ORACLE CORP...................................31.59 -2.02 36.50 24.72
PEPSICO.............................................62.28 -1.38 71.89 58.50
PFIZER ................................................19.34 -0.74 21.45 16.25
PHILIP MORRIS INTL .........................69.62 -1.58 72.74 55.85
PROCTER AND GAMBLE ..................62.72 -1.49 67.72 56.57
QUALCOMM INC ................................55.41 -1.62 59.84 45.98
SCHLUMBERGER ..............................73.09 -3.74 95.64 54.79
TRAVELERS CIES..............................56.92 -2.11 64.17 45.97
UNION PACIFIC ..................................98.36 -3.97 107.89 77.73
UNITED TECHNOLOGIE ....................76.44 -2.43 91.83 66.87
VERIZON COMMS ..............................36.89 -0.63 38.95 31.60
WAL-MART STORES..........................58.05 -1.27 59.40 48.31
WALT DISNEY CO ..............................33.79 -1.50 44.34 28.19
WELLS FARGO & CO.........................24.99 -1.54 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 ..................0.666 -0.41
LIBOR Euro - 12 months ................2.001 0.00
LIBOR USD - overnight...................0.140 0.00
LIBOR USD - 12 months.................0.964 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 .........................3.020 -0.04
European repo rate.........................0.517 -0.03
Euro Euribor ....................................0.942 -0.01
The vix index ...................................31.92 4.44
The baItic dry index ........................1.759 0.00
Markit iBoxx...................................239.08 1.12
Markit iTraxx..................................175.03 0.76
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
BAE Systems . . . . . .271.1 -6.5 361.1 248.1
Chemring Group . . . .509.0 -3.5 736.5 485.0
Cobham . . . . . . . . . . .178.1 0.4 236.5 168.5
Meggitt . . . . . . . . . . . .386.4 -1.7 397.6 304.9
QinetiQ Group . . . . . .119.5 -2.5 136.3 96.7
RoIIs-Royce Group . .712.5 -2.0 727.0 557.5
Senior . . . . . . . . . . . . .164.3 8.3 190.6 132.6
UItra EIectronics . . .1613.0 -42.0 1830.0 1305.0
GKN . . . . . . . . . . . . . .189.0 -1.1 245.0 157.0
BarcIays . . . . . . . . . . .172.1 -10.0 333.6 138.9
HSBC HoIdings . . . . .506.3 -31.2 730.9 473.6
LIoyds Banking Gr . . .27.5 -1.4 69.9 27.5
RoyaI Bank of Sco . . .21.1 -1.2 49.0 19.7
Standard Chartere .1377.0 -37.0 1913.5 1169.5
AG Barr . . . . . . . . . .1276.0 11.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .326.4 1.1 503.5 289.9
Diageo . . . . . . . . . . .1319.0 -3.0 1344.0 1112.0
SABMiIIer . . . . . . . . .2210.5 -34.5 2354.5 1979.0
AZ EIectronic Mat . . .230.4 -6.0 338.1 206.1
Croda Internation . .1706.0 -51.0 2081.0 1367.0
EIementis . . . . . . . . . .136.4 -4.1 187.4 104.8
Johnson Matthey . .1829.0 -28.0 2119.0 1523.0
Victrex . . . . . . . . . . .1217.0 -4.0 1590.0 1025.0
YuIe Catto & Co . . . . .154.0 -5.5 253.0 148.0
C/$ 1.3590 0.0236
C/ 0.8521 0.0071
C/ 105.16 0.2973
/C 1.1735 0.0083
/$ 1.5951 0.0144
/ 123.65 1.4100
FTSE 100
5460.38
106.96
FTSE 250
10268.87
150.47
FTSE ALLSHARE
2815.69
52.84
DOW
11780.94
389.24
NASDAQ
2621.65
105.84
S&P 500
1229.10
46.82
RPC Group . . . . . . . .350.1 -5.9 384.8 215.4
Smiths Group . . . . . .923.5 -29.0 1429.0 907.5
Brown (N.) Group . . .264.3 1.8 311.2 251.1
Carpetright . . . . . . . . .458.1 3.2 835.5 441.4
Debenhams . . . . . . . . .65.0 0.9 75.7 51.2
Dignity . . . . . . . . . . . .820.0 15.5 854.5 644.0
Dixons RetaiI . . . . . . .11.2 0.2 26.6 10.6
DuneImGroup . . . . . .519.5 -5.0 550.0 383.9
HaIfords Group . . . . .335.0 -3.6 459.7 268.6
Home RetaiI Group . . .86.4 -4.0 235.0 84.6
Inchcape . . . . . . . . . .327.0 -7.5 425.4 268.1
JD Sports Fashion . .830.0 -5.0 1030.0 753.5
Kesa EIectricaIs . . . . .99.0 -2.8 174.0 80.0
Kingfisher . . . . . . . . .253.9 -7.3 287.1 217.0
Marks & Spencer G . .321.1 -2.4 406.0 301.8
Mothercare . . . . . . . .162.2 0.7 627.5 151.0
Next . . . . . . . . . . . . .2748.0 2.0 2770.0 1868.0
Sports Direct Int . . . .237.0 0.1 266.2 125.5
WH Smith . . . . . . . . . .550.0 -6.0 564.5 433.8
Smith & Nephew . . . .550.0 6.5 742.0 521.0
Synergy HeaIth . . . . .820.0 5.5 981.0 773.5
Barratt DeveIopme . . .88.0 -2.6 119.0 67.5
BeIIway . . . . . . . . . . . .701.0 0.0 753.5 511.0
BaIfour Beatty . . . . . .239.6 -5.4 357.3 228.6
GaIIiford Try . . . . . . . .482.0 2.0 530.0 276.5
Kier Group . . . . . . . .1443.0 8.0 1483.0 1097.0
Drax Group . . . . . . . .554.0 6.0 569.5 353.6
SSE . . . . . . . . . . . . . .1310.0 -26.0 1423.0 1111.0
Domino Printing S . .571.0 -7.5 705.0 434.3
HaIma . . . . . . . . . . . . .340.1 2.6 429.6 306.3
Laird . . . . . . . . . . . . . .146.5 -4.8 207.0 127.9
Morgan CrucibIe C . .274.4 -6.6 357.1 222.3
Oxford Instrument . .821.5 5.0 1010.0 495.0
Renishaw . . . . . . . . . .954.0 -47.0 1886.0 862.0
Spectris . . . . . . . . . .1270.0 3.0 1679.0 1039.0
Aberforth SmaIIer . . .537.5 -4.0 714.0 508.5
AIIiance Trust . . . . . .336.3 -3.3 392.7 310.2
Bankers Inv Trust . . .380.0 -5.0 428.0 346.5
BH GIobaI Ltd. GB .1185.0 -3.0 1210.0 1058.0
BH GIobaI Ltd. US . . . .11.8 -0.0 12.2 10.4
BH Macro Ltd. EUR . . .19.5 0.0 20.1 15.8
BH Macro Ltd. GBP 2044.0 11.0 2070.0 1630.0
BH Macro Ltd. USD . . .19.6 0.1 20.1 15.8
BIackRock WorId M .660.0 -11.5 815.5 574.5
BIueCrest AIIBIue . . .168.1 -0.3 176.2 162.4
British Assets Tr . . . .118.5 -2.3 140.5 109.0
British Empire Se . . .442.0 -14.0 533.0 409.9
CaIedonia Investm .1503.0 -30.0 1928.0 1470.0
City of London In . . .277.5 -5.1 306.9 257.0
Dexion AbsoIute L . .134.0 -1.0 151.0 130.0
Edinburgh Dragon . .222.9 -3.1 262.1 201.4
Edinburgh Inv Tru . . .458.3 -6.2 492.2 414.9
EIectra Private E . . .1504.0 -16.0 1755.0 1287.0
F&C Inv Trust . . . . . .286.1 -4.7 327.9 261.5
FideIity China Sp . . . . .78.3 -1.0 128.7 70.0
FideIity European . . .986.5 -18.5 1287.0 912.0
HeraId Inv Trust . . . . .456.4 -4.1 545.5 419.0
HICL Infrastructu . . . .118.7 -0.1 121.3 112.7
Impax Environment . .94.6 -0.6 130.5 88.5
JPMorgan American .814.0 -8.0 916.0 721.5
JPMorgan Asian In . .195.0 -2.6 250.8 170.1
JPMorgan Emerging .523.0 -10.0 639.0 480.1
JPMorgan European .696.0 -13.0 983.5 690.0
JPMorgan Indian I . . .368.8 -5.7 502.0 350.0
JPMorgan Russian .498.1 -22.9 755.0 415.1
Law Debenture Cor . .353.5 -5.8 385.0 309.8
MercantiIe Inv Tr . . . .898.0 -24.0 1137.0 856.5
Merchants Trust . . . .369.4 -4.6 431.8 347.0
Monks Inv Trust . . . .315.1 -6.9 367.9 298.1
Murray Income Tru . .611.0 -12.0 673.0 568.0
Murray Internatio . . .888.0 -11.5 991.5 818.5
PerpetuaI Income . . .249.0 -4.0 276.0 234.8
PersonaI Assets T .33850.0 10.0 33860.030210.0
PoIar Cap TechnoI . .352.9 0.9 391.2 299.5
RIT CapitaI Partn . . .1328.0 -32.0 1380.0 1131.0
Scottish Inv Trus . . . .452.3 -2.7 524.0 417.0
Scottish Mortgage . .641.5 -15.5 781.0 586.5
SVG CapitaI . . . . . . . .191.3 -2.2 279.8 187.9
TempIe Bar Inv Tr . . .857.0 -18.0 952.0 791.0
TempIeton Emergin .564.0 -3.0 689.5 497.0
TR Property Inv T . . .162.8 -1.9 206.1 150.0
TR Property Inv T . . . .75.9 0.2 94.0 69.5
Witan Inv Trust . . . . .443.1 -8.7 533.0 401.5
3i Group . . . . . . . . . . .199.9 -3.2 340.0 184.1
3i Infrastructure . . . .120.1 -0.3 125.2 113.1
Aberdeen Asset Ma .187.8 -5.9 240.0 167.8
Ashmore Group . . . .332.2 -13.2 420.0 301.5
Brewin DoIphin Ho . .122.7 0.6 185.4 113.7
CameIIia . . . . . . . . . .8800.5 -25.010950.0 8800.0
CharIes TayIor Co . . .134.5 -0.5 187.0 122.0
City of London Gr . . . .68.5 0.0 93.6 68.0
City of London In . . .349.9 -1.9 461.5 321.3
CIose Brothers Gr . . .695.0 -8.0 888.5 656.5
CoIIins Stewart H . . . .55.5 -1.8 90.8 55.5
EvoIution Group . . . . .79.8 -5.0 94.0 62.3
F&C Asset Managem .69.3 -1.3 92.9 56.1
Hargreaves Lansdo .500.5 -9.0 646.5 402.5
HeIphire Group . . . . . . .2.7 -0.1 19.3 2.2
Henderson Group . . .113.0 -3.1 173.1 95.1
Highway CapitaI . . . . .12.0 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .360.2 -3.3 570.5 350.4
IG Group HoIdings . .448.0 -1.3 528.5 393.6
Intermediate Capi . . .226.4 -8.1 360.3 197.9
InternationaI Per . . . .218.8 -4.7 388.8 196.5
InternationaI Pub . . . .116.8 0.0 118.3 108.6
Investec . . . . . . . . . . .357.6 -18.4 538.0 331.8
IP Group . . . . . . . . . . . .72.8 0.3 72.8 29.9
Jupiter Fund Mana . .215.0 -7.4 337.3 184.9
Liontrust Asset M . . . .58.3 0.0 94.3 57.0
LMS CapitaI . . . . . . . . .59.9 -0.4 64.8 44.8
London Finance & . . .23.0 0.0 23.5 16.5
London Stock Exch .854.5 -56.5 1076.0 717.0
Lonrho . . . . . . . . . . . . .12.0 0.0 19.8 11.5
Man Group . . . . . . . . .143.1 -2.6 311.0 136.0
Paragon Group Of . .174.1 -5.0 206.1 134.6
Provident Financi . .1032.0 -8.0 1124.0 728.5
Rathbone Brothers .1117.0 -23.0 1257.0 972.0
Record . . . . . . . . . . . . .17.3 -1.3 43.0 16.5
RSM Tenon Group . . .23.3 -0.8 66.3 20.3
Schroders . . . . . . . .1319.0 -37.0 1922.0 1183.0
Schroders (Non-Vo .1139.0 -42.0 1554.0 970.0
TuIIett Prebon . . . . . .320.4 -10.9 428.6 319.6
WaIker Crips Grou . . .46.0 0.0 51.5 45.0
BT Group . . . . . . . . . .189.9 -3.2 204.1 159.2
CabIe & WireIess . . . .37.5 -2.1 52.9 31.3
CabIe & WireIess . . . .29.4 0.1 76.9 26.3
COLT Group SA . . . . .99.2 -3.8 156.2 91.6
KCOM Group . . . . . . . .72.3 -0.4 84.0 47.5
TaIkTaIk TeIecom . . .123.6 -2.7 168.3 119.8
TeIecomPIus . . . . . . .725.5 -12.0 750.5 379.8
Booker Group . . . . . . .79.0 0.1 80.0 54.5
Greggs . . . . . . . . . . . .512.0 -7.0 550.5 429.1
Morrison (Wm) Sup .306.5 -4.5 312.6 262.7
Ocado Group . . . . . . . .87.6 -2.0 285.0 84.8
Sainsbury (J) . . . . . . .297.6 -2.7 391.5 263.5
Tesco . . . . . . . . . . . . .401.8 -7.0 439.0 356.3
Associated Britis . . .1114.0 -14.0 1182.0 940.0
Cranswick . . . . . . . . .713.5 -5.0 883.5 588.5
Dairy Crest Group . . .336.0 -3.0 424.9 325.0
Devro . . . . . . . . . . . . .259.0 6.8 296.9 223.5
Premier Foods . . . . . . . .4.0 0.2 35.1 3.3
Tate & LyIe . . . . . . . . .669.0 -15.5 690.0 510.0
UniIever . . . . . . . . . .2045.0 -62.0 2114.0 1777.0
Mondi . . . . . . . . . . . . .448.9 -19.1 664.0 446.0
Centrica . . . . . . . . . . .299.5 -2.5 345.8 282.6
InternationaI Pow . . .336.7 3.0 448.6 279.4
NationaI Grid . . . . . . .618.5 -3.0 649.5 530.0
Pennon Group . . . . . .711.0 0.0 737.5 584.5
Severn Trent . . . . . .1578.0 13.0 1583.0 1368.0
United UtiIities . . . . .619.5 5.0 631.5 543.5
Cookson Group . . . . .460.9 -19.0 724.5 395.8
DS Smith . . . . . . . . . .204.7 -6.4 266.2 164.4
Rexam . . . . . . . . . . . .328.7 -3.5 400.0 299.8
Price Chg High Low
BerkeIey Group Ho .1246.0 -7.0 1299.0 789.5
Bovis Homes Group .455.0 -5.0 485.5 326.5
Persimmon . . . . . . . .486.1 -3.9 518.5 338.4
Reckitt Benckiser . .3203.0-122.0 3648.0 3015.0
Redrow . . . . . . . . . . . .108.7 -3.2 139.0 98.4
TayIor Wimpey . . . . . . .37.2 -0.5 43.3 23.8
Bodycote . . . . . . . . . .280.4 -5.8 397.7 225.6
Charter Internati . . . .916.0 -1.5 934.5 538.5
Fenner . . . . . . . . . . . .354.7 6.2 422.5 269.1
IMI . . . . . . . . . . . . . . . .794.5 -30.5 1119.0 636.5
MeIrose . . . . . . . . . . .337.0 -3.1 365.4 265.7
Northgate . . . . . . . . . .249.6 0.8 346.7 202.0
Rotork . . . . . . . . . . .1718.0 -23.0 1858.0 1501.0
Spirax-Sarco Engi . .1856.0 0.0 2063.0 1649.0
Weir Group . . . . . . .1887.0 -24.0 2218.0 1375.0
Ferrexpo . . . . . . . . . . .322.0 9.8 499.0 238.7
TaIvivaara Mining . . .215.9 -9.1 622.0 205.0
BBAAviation . . . . . . .178.7 -3.1 240.8 156.0
Stobart Group Ltd . . .120.9 0.6 163.6 117.5
AdmiraI Group . . . . . .887.5-305.5 1754.0 815.5
AmIin . . . . . . . . . . . . .297.6 0.1 427.0 270.6
Huntsworth . . . . . . . . .61.0 -0.5 85.0 55.3
Informa . . . . . . . . . . . .363.7 -9.3 461.1 313.9
ITE Group . . . . . . . . . .189.0 1.4 258.2 157.7
ITV . . . . . . . . . . . . . . . . .63.8 -1.5 93.5 51.7
Johnston Press . . . . . . .4.8 0.1 12.8 4.1
MecomGroup . . . . . .155.0 0.5 310.0 134.5
Moneysupermarket. .107.5 -0.6 120.4 75.7
Pearson . . . . . . . . . .1123.0 -20.0 1207.0 926.0
PerformGroup . . . . .210.0 -1.0 234.5 150.0
Reed EIsevier . . . . . .535.5 -6.5 590.5 461.3
Rightmove . . . . . . . .1389.0 -19.0 1421.0 736.5
STV Group . . . . . . . . .106.0 0.0 168.0 90.3
Tarsus Group . . . . . .129.5 0.5 165.0 114.0
Trinity Mirror . . . . . . . .48.0 -0.5 106.3 37.5
UBM . . . . . . . . . . . . . .494.3 -8.7 725.0 416.0
UTV Media . . . . . . . . .115.3 -2.8 150.0 101.0
WiImington Group . . .87.0 -1.8 183.0 82.5
WPP . . . . . . . . . . . . . .654.0 -10.5 846.5 578.0
YeII Group . . . . . . . . . . .3.4 -0.3 14.8 3.3
African Barrick G . . .563.5 -5.5 618.5 393.5
AIIied GoId Minin . . .157.0 -7.2 281.3 34.4
AngIo American . . .2353.0 -62.0 3437.0 2138.5
AngIo Pacific Gro . . .275.0 -8.0 369.3 237.9
Antofagasta . . . . . . .1185.0 -35.0 1634.0 900.5
Aquarius PIatinum . .172.3 -0.3 419.0 159.9
BeazIey . . . . . . . . . . . .127.4 -1.6 139.2 109.6
CatIin Group Ltd. . . .391.3 -4.2 421.4 331.5
Hiscox Ltd. . . . . . . . . .387.0 -7.3 424.7 340.5
Jardine LIoyd Tho . . .710.0 -12.0 764.5 571.5
Lancashire HoIdin . . .757.0 -17.5 777.5 529.0
RSA Insurance Gro . .107.1 -1.5 143.5 105.3
Aviva . . . . . . . . . . . . . .307.8 -16.4 477.9 275.3
LegaI & GeneraI G . . .102.5 -3.2 123.8 89.8
OId MutuaI . . . . . . . . .106.0 -2.2 144.8 98.1
Phoenix Group HoI . .500.0 -19.5 688.0 451.1
PrudentiaI . . . . . . . . . .611.0 -25.5 777.0 509.0
ResoIution Ltd. . . . . .254.1 -14.3 316.1 211.3
St James's PIace . . . .333.0 -2.4 376.0 236.2
Standard Life . . . . . . .202.6 -5.5 244.7 172.0
4Imprint Group . . . . .222.0 -18.0 295.0 200.0
Aegis Group . . . . . . .136.0 -3.2 158.5 115.7
BIoomsbury PubIis . . .96.8 0.5 138.0 95.0
British Sky Broad . . .726.5 -8.5 850.0 618.5
Centaur Media . . . . . . .37.5 -1.0 73.0 36.0
Chime Communicati .202.3 -0.3 298.5 173.0
Creston . . . . . . . . . . . .84.5 -0.5 121.0 72.0
DaiIy MaiI and Ge . . .411.3 -7.5 594.5 343.4
Euromoney Institu . .681.0 8.0 736.0 522.5
Future . . . . . . . . . . . . . .10.5 0.3 30.0 9.8
Haynes PubIishing . .225.0 0.0 257.0 203.5
BHP BiIIiton . . . . . . .1967.5 -49.5 2631.5 1667.0
Centamin Egypt Lt . .109.0 0.3 197.1 89.7
Eurasian NaturaI . . .668.5 -18.0 1125.0 522.0
FresniIIo . . . . . . . . . .1832.0 -30.0 2150.0 1296.0
GemDiamonds Ltd. .230.0 1.0 306.0 179.8
GIencore Internat . . .440.5 -7.5 531.1 348.0
HochschiId Mining . .438.8 -6.0 680.0 397.0
Kazakhmys . . . . . . . .923.0 -27.5 1671.0 730.0
Kenmare Resources . .40.2 -1.2 59.9 23.4
Lonmin . . . . . . . . . . .1042.0 -24.0 1983.0 974.5
New WorId Resourc .471.5 -25.6 1060.0 410.5
PetropavIovsk . . . . . .739.0 -11.5 1165.0 543.5
RandgoId Resource 7555.0 175.0 7565.0 4425.0
Rio Tinto . . . . . . . . .3484.5 -35.5 4712.0 2712.5
Vedanta Resources 1250.0 -32.0 2559.0 948.0
Xstrata . . . . . . . . . . .1020.5 -6.5 1550.0 764.0
Inmarsat . . . . . . . . . . .458.2 -5.7 719.5 389.7
Vodafone Group . . . .176.7 0.7 182.8 155.1
Genesis Emerging . .459.4 -11.1 568.0 430.0
Afren . . . . . . . . . . . . . . .75.7 -0.6 171.2 73.6
BG Group . . . . . . . . .1386.0 -14.0 1564.5 1144.0
BP . . . . . . . . . . . . . . . .450.0 -7.3 509.0 363.2
Cairn Energy . . . . . . .281.0 -8.0 469.7 261.4
EnQuest . . . . . . . . . . .106.5 -3.0 158.5 86.6
Essar Energy . . . . . .284.0 -22.0 589.5 235.1
ExiIIon Energy . . . . . .304.7 -5.3 469.7 184.2
Heritage OiI . . . . . . . .204.0 -4.5 486.0 190.0
Ophir Energy . . . . . . .247.4 -4.6 299.0 184.5
Premier OiI . . . . . . . . .359.9 -6.2 535.0 310.0
RoyaI Dutch SheII . .2171.0 -31.5 2326.5 1883.5
RoyaI Dutch SheII . .2232.0 -33.0 2336.0 1890.5
SaIamander Energy .212.5 3.5 317.6 182.3
Soco Internationa . . .313.4 -10.6 400.0 279.8
TuIIow OiI . . . . . . . . .1360.0 -76.0 1493.0 945.5
Amec . . . . . . . . . . . . .907.5 -12.0 1251.0 740.5
Hunting . . . . . . . . . . .659.0 -8.5 817.0 530.0
Kentz Corporation . .457.5 -41.0 508.0 275.5
LampreII . . . . . . . . . . .255.7 3.1 395.2 220.7
Petrofac Ltd. . . . . . .1397.0 -47.0 1685.0 1108.0
Wood Group (John) .633.5 -10.0 715.8 469.0
Burberry Group . . . .1401.0 -1.0 1600.0 996.0
PZ Cussons . . . . . . . .372.0 4.4 409.0 320.5
Supergroup . . . . . . . .711.0 -14.0 1820.0 591.0
AstraZeneca . . . . . .2838.0 -35.0 3194.0 2543.5
BTG . . . . . . . . . . . . . .289.3 -3.6 309.7 210.1
Genus . . . . . . . . . . . .1009.0 -20.0 1111.0 800.0
GIaxoSmithKIine . . .1374.0 -16.0 1400.5 1127.5
Hikma Pharmaceuti .626.5 1.0 900.0 555.5
Shire PIc . . . . . . . . . .1991.0 -11.0 2136.0 1481.0
CapitaI & Countie . . .177.5 -0.5 203.7 142.5
Daejan HoIdings . . .2756.0 -64.0 2954.0 2282.0
F&C CommerciaI Pr .103.8 -1.2 108.0 88.0
Grainger . . . . . . . . . . . .91.7 -1.2 133.2 77.3
London & Stamford .115.9 -0.2 140.0 111.6
SaviIIs . . . . . . . . . . . . .307.5 -2.9 427.1 256.2
UK CommerciaI Pro . .76.0 -1.6 85.5 70.4
Unite Group . . . . . . . .170.0 -2.0 224.1 152.9
Big YeIIow Group . . .265.1 -3.9 352.2 234.2
British Land Co . . . . .496.2 -18.8 629.5 452.0
CapitaI Shopping . . .312.0 -9.2 424.8 296.4
Derwent London . . .1680.0 -22.0 1880.0 1400.0
Great PortIand Es . . .363.0 -7.5 445.0 317.4
Hammerson . . . . . . . .394.6 -12.7 490.9 353.0
Hansteen HoIdings . . .77.0 -2.0 89.5 70.0
Land Securities G . . .676.5 -17.5 885.0 616.0
SEGRO . . . . . . . . . . . .235.0 -0.5 331.3 210.1
Shaftesbury . . . . . . . .504.5 -2.5 539.0 431.7
Aveva Group . . . . . .1641.0 2.0 1799.0 1298.0
Computacenter . . . . .381.3 -6.7 490.0 354.8
Fidessa Group . . . . .1654.0 39.0 2109.0 1409.0
Invensys . . . . . . . . . . .211.0 -6.9 364.3 199.6
Logica . . . . . . . . . . . . .79.0 -2.3 147.2 73.9
Micro Focus Inter . . .340.2 -2.4 426.2 239.4
Misys . . . . . . . . . . . . .285.7 -4.5 420.2 214.9
Sage Group . . . . . . . .275.9 -2.5 302.0 231.7
SDL . . . . . . . . . . . . . . .639.0 -3.0 711.5 555.0
TeIecity Group . . . . . .614.5 10.5 615.0 430.0
Aggreko . . . . . . . . . .1771.0 -7.0 2034.0 1394.5
Ashtead Group . . . . .162.1 -1.4 207.9 99.4
Atkins (WS) . . . . . . . .535.5 -14.5 820.0 490.2
Babcock Internati . . .687.0 -6.0 733.0 513.5
Berendsen . . . . . . . . .435.0 -1.0 568.0 391.3
BunzI . . . . . . . . . . . . .789.0 -18.5 820.5 676.5
Cape . . . . . . . . . . . . . .328.0-137.0 591.5 312.8
Capita Group . . . . . . .661.0 -35.0 786.5 635.5
CariIIion . . . . . . . . . . .324.3 0.7 403.2 298.8
De La Rue . . . . . . . . .871.0 11.5 886.0 549.5
DipIoma . . . . . . . . . . .324.6 -1.4 414.3 263.3
EIectrocomponents .205.0 -7.9 294.9 182.2
Experian . . . . . . . . . . .784.0 -11.0 833.5 665.0
FiItrona PLC . . . . . . . .379.0 2.6 397.1 227.5
G4S . . . . . . . . . . . . . . .249.0 -2.7 291.0 219.9
Hays . . . . . . . . . . . . . . .73.7 -2.9 133.6 66.6
Homeserve . . . . . . . .218.5 -51.7 532.0 210.0
Howden Joinery Gr . .114.4 -2.7 127.5 90.0
Interserve . . . . . . . . . .324.4 0.1 341.3 183.5
Intertek Group . . . . .1879.0 -35.0 2148.0 1715.0
MichaeI Page Inte . . .372.9 -0.6 567.0 338.7
Mitie Group . . . . . . . .252.1 -1.5 257.5 194.1
Premier FarneII . . . . .163.9 -3.6 308.8 144.5
Regus . . . . . . . . . . . . . .80.5 0.5 119.0 64.0
RentokiI InitiaI . . . . . . .64.8 -2.8 104.9 64.8
RPS Group . . . . . . . . .181.8 -2.8 253.0 156.6
Serco Group . . . . . . .506.0 -9.0 618.5 490.9
Shanks Group . . . . . .113.9 -2.0 130.9 103.0
SIG . . . . . . . . . . . . . . . .93.5 1.0 153.5 83.8
SThree . . . . . . . . . . . .226.9 -5.4 447.6 213.2
Travis Perkins . . . . . .844.0 -14.5 1127.0 715.0
WoIseIey . . . . . . . . .1829.0 -31.0 2261.0 1404.0
ARM HoIdings . . . . . .616.0 -8.0 651.0 350.3
CSR . . . . . . . . . . . . . .173.3 0.8 447.0 170.8
Imagination Techn . .461.7 -8.3 502.0 296.9
Pace . . . . . . . . . . . . . . .63.3 -6.3 231.8 63.3
Spirent Communica .125.6 -0.8 160.3 109.5
British American . .2912.0 -37.0 2973.5 2282.5
ImperiaI Tobacco . .2299.0 -21.0 2341.0 1784.0
Betfair Group . . . . . . .789.0 -9.0 1490.0 567.0
Bwin.party Digita . . .125.0 -5.5 257.6 100.6
CarnivaI . . . . . . . . . .2163.0 -47.0 3153.0 1742.0
Compass Group . . . .555.0 -12.5 612.0 512.5
Domino's Pizza UK . .449.7 -8.7 586.0 377.0
easyJet . . . . . . . . . . . .346.3 -8.7 477.3 301.0
FirstGroup . . . . . . . . .341.0 13.2 412.6 301.8
Go-Ahead Group . . .1330.0 -2.0 1598.0 1203.0
Greene King . . . . . . .441.2 -5.1 518.0 410.0
InterContinentaI . . .1047.0 -26.0 1435.0 955.0
InternationaI Con . . .142.0 -4.9 305.0 140.9
JD Wetherspoon . . . .425.3 7.3 468.3 380.5
Ladbrokes . . . . . . . . .134.1 -3.0 155.3 114.0
Marston's . . . . . . . . . . .92.8 -1.0 117.1 84.6
MiIIennium& Copt . .401.5 -6.0 600.5 375.6
MitcheIIs & ButIe . . . .224.6 -5.2 361.0 216.4
NationaI Express . . .220.4 -2.9 270.2 218.3
Rank Group . . . . . . . .137.0 -2.0 153.7 109.5
Restaurant Group . . .282.0 1.2 335.0 254.9
Stagecoach Group . .248.8 0.0 272.4 200.0
Thomas Cook Group .41.6 -4.0 204.8 33.7
TUI TraveI . . . . . . . . . .157.9 -3.6 271.9 137.2
Whitbread . . . . . . . .1620.0 -24.0 1887.0 1409.0
WiIIiamHiII . . . . . . . . .213.8 0.7 244.1 155.5
Abcam . . . . . . . . . . . .360.0 1.3 460.0 307.0
AIbemarIe & Bond . .331.0 0.0 400.1 272.0
Amerisur Resource . .13.0 0.0 29.0 9.5
Andor TechnoIogy . .517.0 4.0 685.0 370.0
ArchipeIago Resou . . .64.5 0.3 79.0 40.5
ASOS . . . . . . . . . . . .1465.0 -8.0 2468.0 1234.0
AureIian OiI & Ga . . . .24.3 0.0 92.0 16.0
Avanti Communicat .294.0 -12.8 735.0 248.5
Avocet Mining . . . . . .239.8 4.0 286.8 177.5
BIinkx . . . . . . . . . . . . .138.3 -16.5 158.0 70.5
Borders & Souther . . .60.8 0.8 72.3 43.5
BowLeven . . . . . . . . .100.5 -0.5 398.0 74.5
Brooks MacdonaId 1280.0 0.0 1372.5 940.0
Cove Energy . . . . . . . .85.5 -1.0 112.8 61.0
Daisy Group . . . . . . . .98.5 -0.8 127.0 88.0
EMIS Group . . . . . . . .505.0 -10.0 580.0 406.0
Encore OiI . . . . . . . . . .75.3 -1.5 151.5 40.8
Faroe PetroIeum . . . .153.5 5.8 218.3 130.0
GuIfsands PetroIe . . .195.0 -6.0 401.5 142.5
GWPharmaceuticaI . .91.5 -6.0 130.0 87.0
H&T Group . . . . . . . . .310.0 -10.0 395.0 277.0
Hamworthy . . . . . . . .642.5 -22.5 705.0 373.8
Hargreaves Servic .1156.0 -14.0 1180.0 685.0
HeaIthcare Locums . . . .4.3 -0.3 4.7 4.3
Immunodiagnostic . .895.0 24.0 1218.0 768.5
ImpeIIamGroup . . . .270.5 -7.5 387.5 180.5
James HaIstead . . . . .467.5 7.5 495.0 357.5
KaIahari MineraIs . . .231.3 -1.8 301.0 186.8
London Mining . . . . .297.8 -0.8 436.5 283.0
Lupus CapitaI . . . . . .103.0 0.0 150.0 86.0
M. P. Evans Group . .402.5 7.5 500.5 371.0
Majestic Wine . . . . . .420.0 2.0 510.0 352.0
May Gurney Integr . .294.8 -7.3 302.0 211.0
Monitise . . . . . . . . . . . .37.3 -1.3 40.0 18.5
MuIberry Group . . . .1551.0 31.0 1920.0 530.0
Nanoco Group . . . . . . .43.4 -0.1 114.3 38.0
NauticaI PetroIeu . . .268.0 -5.5 547.0 223.5
NichoIs . . . . . . . . . . . .536.0 -1.5 579.0 410.0
Numis Corporation . . .91.5 -2.5 137.8 89.0
Pan African Resou . . .14.3 0.3 14.5 9.5
Patagonia GoId . . . . . .54.8 -4.0 70.0 28.0
Prezzo . . . . . . . . . . . . .58.5 0.0 71.5 53.3
Pursuit Dynamics . . .186.0 -12.0 700.0 160.5
Rockhopper ExpIor .252.8 34.3 386.0 141.0
RWS HoIdings . . . . . .440.0 0.0 479.8 266.5
Songbird Estates . . .117.5 -0.5 160.3 110.3
VaIiant PetroIeum . . .422.0 -22.0 672.0 420.0
Young & Co's Brew . .644.0 -8.5 712.0 542.5
Premier Foods . . . . . . . .4.0 5.4
Senior . . . . . . . . . . . . .164.3 5.3
FirstGroup . . . . . . . . .341.0 4.0
Ferrexpo . . . . . . . . . .322.0 3.1
Devro . . . . . . . . . . . . .259.0 2.7
Fidessa Group . . . . .1654.0 2.4
RandgoId Resources7555.0 2.4
Dignity . . . . . . . . . . . .820.0 1.9
Dixons RetaiI . . . . . . .11.2 1.8
Fenner . . . . . . . . . . . .354.7 1.8
Cape . . . . . . . . . . . . . .328.0 -29.5
AdmiraI Group . . . . . .887.5 -25.6
Homeserve . . . . . . . .218.5 -19.1
Pace . . . . . . . . . . . . . . .63.3 -9.1
Thomas Cook Group .41.6 -8.9
Kentz Corporation . .457.5 -8.2
Essar Energy . . . . . .284.0 -7.2
London Stock Excha 854.5 -6.2
HSBC HoIdings . . . . .506.3 -5.8
RoyaI Bank of Scot . . .21.1 -5.6
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
FINANCIAL SERVICES
FIXED LINE TELECOMS
FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. & EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM 50
NON LIFE INSURANCE
REAL ESTATE INVEST. TRUSTS
http://corporate.webfg.com
mailto:
globaltechsales@webfg.com
AUTOMOBILES & PARTS
BANKS
CHEMICALS
BEVERAGES
GENERAL INDUSTRIALS
MOBILE TELECOMS
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
MINING
NONEQUITY INVESTM. COMM.
Tsy 3.250 11 . . . . .100.07 -0.01 102.8 100.1
Tsy 9.000 12 . . . .106.24 0.00 114.0 105.8
Tsy 5.000 12 . . . .101.43 -0.01 105.7 101.4
Tsy 5.250 12 . . . .102.69 -0.01 107.0 102.7
Tsy 4.500 13 . . . .105.24 -0.01 108.3 105.2
Tsy 2.500 13 . . . .284.67 -0.07 287.7 277.6
Tsy 8.000 13 . . . . .113.88 -0.03 119.9 113.6
Tsy 5.000 14 . . . . .112.10 0.01 113.3 109.2
Tsy 4.750 15 . . . . .114.60 0.07 114.8 108.6
Tsy 8.000 15 . . . .128.26 0.05 130.0 123.7
Tsy 7.750 15 . . . .101.05 -0.47 108.3 100.8
Tsy 4.000 16 . . . . .113.50 0.10 113.7 104.9
Tsy 2.500 16 . . . .342.45 -0.08 343.7 310.2
Tsy 8.750 17 . . . .140.63 0.18 141.9 132.9
Tsy 12.000 17 . . .123.54 0.00 132.9 122.5
Tsy 1.250 17 . . . . .115.27 -0.03 115.8 106.7
Tsy 5.000 18 . . . .121.21 0.23 121.4 109.7
Tsy 4.500 19 . . . . .119.25 0.47 119.3 105.4
Tsy 3.750 19 . . . . .113.93 0.49 114.3 99.4
Tsy 2.500 20 . . . .358.95 0.26 361.2 312.4
Tsy 4.750 20 . . . .121.71 0.55 122.1 106.6
Tsy 8.000 21 . . . .150.79 0.62 151.8 133.8
Tsy 1.875 22 . . . .124.75 0.38 125.4 111.3
Tsy 4.000 22 . . . . .116.29 0.69 116.6 99.0
Tsy 2.500 24 . . . .319.57 0.27 321.9 273.5
Tsy 5.000 25 . . . .128.10 0.76 128.4 107.4
Tsy 4.250 27 . . . . .119.39 0.80 120.4 97.9
Tsy 1.250 27 . . . . .119.68 0.22 121.0 104.6
Tsy 6.000 28 . . . .144.10 0.78 144.7 119.5
Tsy 4.750 30 . . . .126.89 0.87 128.1 103.0
Tsy 4.125 30 . . . .305.17 0.10 306.3 261.2
Tsy 4.250 32 . . . . .119.25 0.94 119.8 96.0
Tsy 4.250 36 . . . . .119.52 1.10 120.1 95.0
Tsy 4.750 38 . . . .129.26 1.04 130.0 102.8
Tsy 4.500 42 . . . .125.89 0.99 125.9 98.9
% %
Wealth Management
30 CITYA.M. 10 NOVEMBER 2011
5PLAN AND PRIORITISE
As the old adage goes: you cant hit
what you dont aim at. You really
need a plan. Beavis says: Think
about where you want to be in the
future, and make a plan to help you
get there. This may mean looking
beyond a promotion and salary
increase for your next role. This can
be an uncomfortable process, but it
will hopefully draw your attention
to the skills and industry exposure
you need to reach your goals. If
youre not sure, think about what
motivates you, what you enjoy and
what youre good at. It will help
guide you to your plan eventually.
6DEVELOP SKILLS
When youve worked out what skills
you need to get you that perfect job,
you need to start working on them.
This could mean investing some of
your spare time.
You might also need to heighten
your awareness of the skills you
already hold. Nader Bawany of spe-
cialist financial sector recruiter
Fairway Partners says: I strongly
advocate that you keep an updated
CV diary. Every three to four
months, record your work achieve-
ments and any skills and strengths
gained or developed. You can edit
and amend as necessary, but at least
most of the CV slog will have been
done and captured. This will save
you having to produce a CV under
stress, from scratch. Senior execu-
tives, in particular, will have CVs
containing vast amounts of informa-
tion that needs to be distilled to
highlight the most relevant bits.
7FIND A RELIABLE HEADHUNTER
Get networking to find a good head-
hunter. Its good to find one or two
in your sector to form a strong rela-
tionship with. Bawany explains:
They should act as your eyes and
ears on the market and will ideally
have dealt with you throughout your
career progression, understanding
your objectives and how they evolve.
With your permission, they can con-
duct a confidential search on exist-
ing and upcoming opportunities
and report back on what may be of
interest to you according to specified
criteria.
M
ORGAN McKinley reported a
nine per cent rise in the
number of people seeking
new employment opportuni-
ties in financial services last week. But
with tales of redundancies covering
the financial pages, ensuring you hear
about the best opportunities first is
ever more important. Indeed,
recruiter Astbury Marsden, who also
had a report out last week, says that
the market trend has led bankers and
fund managers to window shop for
roles at rival companies. This diagno-
sis got us wondering how one goes
about this. Heres what three recruit-
ment agencies had to say.
1KEEPING AN EYE OUT
Keep skimming your eyes across the
jobs boards and recruitment websites
to see who is hiring even if youre not
interested in moving on yet. Not just
for opportunities that suit you, but to
get an impression of which sectors are
growing. James Callander, the manag-
ing director of FreshMinds Talent,
says: Have a look at the business press
too. Commercial awareness is vital
when you are considering a new role.
2NETWORK
The power of networking can be
extraordinary. Laura Beavis, a director
at Hays Financial Markets, says: Even
if youre not actively looking for a new
job now, making sure that potential
employers are familiar with you by
attending networking events is key to
ensuring you hear about new opportu-
nities when they arise and when the
time comes for you to move on from
your job youll have made vital con-
tacts to help with your job search.
That goes for those in and outside
your friendship circles too, says
Callander.
3 GET A MENTOR
Get a mentor, says Callander. This
should be someone about 10-15 years
older than you who you look up to
career-wise. It could be a former col-
league, client or perhaps even some-
one you approached over LinkedIn.
4GET LINKEDIN
If you dont already have it, get it.
Recruiters spend half their lives on the
site. Dont stop there though, track
down all of your industrys groups and
keep an eye on them. Quite often, jobs
will be posted there. But be careful,
Callander warns: Managers can see
your activity and something like ask-
ing for a lot of recommendations sud-
denly is quite a clear indication that
you are looking to move on.
Learning the
language of
leadership
Business Features| Careers
Window shop your way to career success
The best jobs come to those who are
always on the lookout for opportunities.
Donata Huggins finds out how you
can stumble across your dream job
Comms has evolved Picture: GETTY
Its always a good idea to keep an eye out Picture: GETTY
Donata Huggins asks Kevin Murray
how chief executives and chairmen are
communicating in todays digital age
31
THE LANGUAGE OF
LEADERS: CEOS ON
COMMUNICATING
TO INSPIRE,
INFLUENCE AND
ACHIEVE RESULTS
BY KEVIN MURRAY
Kogan Page
hhhhi
I
VE been working in business
communications for almost 40
years, says Kevin Murray, the
chairman of the Bell Pottinger
Group. Ive worked with a lot of
organisations and a lot of leaders.
None were stupid, but some were
much more convincing than others.
This got Murray thinking. In fact, it
got him interviewing lots of them;
54 chief executives and chairmen of
some of the worlds biggest compa-
nies to be precise.
The result is a revealing glimpse
into the minds of men and women
who fill the papers and are responsi-
ble for over 2m jobs. In an over-
crowded field, this is a book about
leadership that offers rare insight.
Not only thanks to the wealth of
interview material, but also thanks
to the intimate nature of their
answers. This is likely to be the
result of Murrays view that we fol-
low leaders because of how they
make us feel.
Companies have a greater and a wider responsibility than just to their shareholders. It is
very clear that if you want to have long term success, you need to do first what is right for
your consumers and for your employees and for society at large. If you do all that well, the
shareholders will be rewarded.
Paul Polman, global chief executive, Unilever
Businesses are much more like open democracies. People expect to be communicated to
much more and see themselves as part of a democracy where they consent to being led. As
well as the need to communicate more with employees, there is increased regulatory scruti-
ny, the rise of global NGOs and 24/7 media. You have to represent yourself and explain your
company and your actions all the time.
Graham Mackay, chief executive of SAB Miller
It isn't that trust and reputation are more important today than they were before it is
that they are more vulnerable in today's world. I say to my colleagues in Wates that my num-
ber one concern is that, through their actions and behaviours, a brand and reputation that
took 140 years to build up could be destroyed in an instant.
Paul Drechsler, chairman and chief executive, The Wates Group
Organisations that aspire to long-term success have got to have trust as an important
part of their agenda. You never trust somebody you dont know, whose motives you dont
understand. So, as a leader, you have to give people inside and outside the company a sense
of who you are, and what you stand for. Thats what will help people decide whether they are
willing to trust you.
Jeremy Darroch, chief executive, BSkyB

Lifestyle | Technology
32 CITYA.M. 10 NOVEMBER 2011
OUT OF OFFICE
HELENA LEE
PUDDING PARLOUR AT THE ATHENAEUM
Hungry post-opera? Pop into the
Athenaeums new pudding parlour. Expect a
Pudding of the Month from Edd Kimber,
winner of the Great British Bake-Off, and
cakes and tarts made by its French pastry
chef. If youd like sauce with your pud, then
an extensive pudding wine menu is also on
offer. MonFri 8pm11pm. Sat: 9pm11pm.
10 per visit, 15 includes glass of pudding
wine, www.athenaeumhotel.com
LA TRAVIATA AT ROYAL OPERA HOUSE
Richard Eyres La Traviata evokes 19th cen-
tury Parisian society. Verdis classic opera of
Alexandre Dumas La dame aux camlias
is a dramatic tale of ill-fated love and
between courtesan Violetta Valry
and student Alfredo Germon. 28
November, 2, 6, 9, 12, 17, 20
December at 7pm, 25 November at
12pm. Tickets: 9-195. 020 7304
4000, www.roh.org.uk/traviata
PATRN XO CAFE NOIR SPEAKEASY
Tequila Patrn will be popping up at
Bureau Club off Carnaby Street with a
speakeasy called Patrn XO Cafe Noir.
Performance artist Jonny Woo is
curating the cabaret entertain-
ment. For three days only.
29 November-1 December.
Bureau Club Unit 2, 13 Kingly
Court, London W1B 5PW. Book
at patronsocialclub.co.uk
Left: the Pudding
Parlour at the
Athenaeum. Right:
Tequila Patron.
W
HEN the BBC pioneered the inter-
net TV and radio service BBC
iPlayer in 2007, it changed the
face of terrestrial television.
Tailored TV viewing had truly arrived a
more engaging service that made pro-
grammes more freely available.
Broadcasters are savvy to the demands of
viewers and have embraced the smart TV
and the age of the mobile device. With the
development of apps, a more personalised
service is on offer. City A.M. revisits the key
players from the broadcasters in the TV
catch-up field. Additional research: Caty Hirst
What are the best online playback offerings?
Helena Lee looks at the services available
Playback services
at a glance
40D
Whats the
deal?
The 4oD
catchup serv-
ice was re-
launched at
the end of
August and improvements included the My
4oD section, which requires a username and
password. The benefits include the creation of
playlists and reminders for your favourite shows.
Programmes stay available for 30 days after
broadcasting and you can access them from your
iPad, iPhone and iPad via the app that was made
available from September. Theres also an
impressive film collection from Film 4oD.
TV stations: Channel 4, E4, More4, 4Music
www.channel4.com/programmes/4od
BBC IPLAYER
Whats the deal?
The daddy of the internet playback service. When it
launched, programmes were available for catchup for
seven days, but now theres series catch-up where they
are available until seven days after the series has finished
great for recreating the box-set experience of blitzing
several episodes in one go. For those who travel a lot, a
global commercial version of iPlayer is available for your
iPad through a subscription service. Users can pay 6.99 a
month or 49.99 a year. Unfortunately, HD is not available
yet on iPad.
TV stations: BBC1, BBC2, BBC3, BBC4, cbbc, cbeebies,
BBC parliament, BBC news, BBC HD
www.bbc.co.uk/iplayer
ITV PLAYER
Whats the deal?
ITV Player is a 30 day catch up serv-
ice thats free and funded by adver-
tising. Though it did crash in
mid-September at the advent of
Downton Abbey, its generally reli-
able. ITV is working on some inno-
vations that
promise to
beat the
other
players
and
theres
also talk of an
app for mobile
devices later this
year.
TV stations:
ITV1, ITV2, ITV3,
ITV4 and CITV
www.itv.com/
itvplayer
DEMAND 5
Whats the deal?
If youve missed your regular
Neighbours/Ultimate Fighting/CSI
viewing you can use this catch up
service from Channel 5. Demand 5
launched on Facebook last year and
was the first television network to
embed its programming into the social
networking site. The service is easy to
use and intuitive, though the film col-
lection is slight. The biggest attraction
is the access to 5* and 5USA.
TV stations: Channel 5, 5* and 5USA
www.channel5.com/demand5
ART
34 CITYA.M. 10 NOVEMBER 2011
Lifestyle | ING Discerning Eye 2011
Street Life by
Simon M Smith,
700
Snow drops in an
ink well by Ben
Henriques,
4,400
A
l
l

y
o
u
n
e
e
d

i
s

London in rain by Mila Furstova, 685
Fabulous Las Vegas by Emma Loizides, 690
Untitled (guitar player)
by Ryan McClelland, 400 Snowshill by Tina Vanderwerf, 350
35 CITYA.M. 10 NOVEMBER 2011
Lifestyle | ING Discerning Eye 2011
T
HE annual ING Discerning Eye
exhibition, showcasing the
work of unknown alongside
established artists, opens to the
public today at The Mall Galleries.
300 artists will display their artworks
at this years exhibition, which
attracted over 2,000 submissions.
Selectors include artists Eileen
Cooper, Head of the Printmaking
Department at the Royal Academy
Schools and Lisa Wright. Collectors
who have chosen paintings include
John Pluthero, Chairman, Cable &
Wireless Worldwide and founder of
abstract critical, and Mall Galleries
Manager, John Deston. The critics
selecting their favourites are Ossian
Ward of Time Out and art critic Brian
Sewell. They join an illustrious list
from previous shows, which includes
HRH Prince of Wales, Sarah
Armstrong-Jones, Sir Jonathan Miller,
Joan Bakewell CBE and Griff Rhys
Jones.
With more submissions from the
public than ever before, ING
Discerning Eye has proven how popu-
lar it is among artists, says Gerald
Walker, CEO, ING Commercial
Banking UK, Ireland & Middle East.
The exhibition makes art accessible
to all and connects new artists to the
art scene, enabling them to showcase
their work in a prestigious environ-
ment. ING is delighted to support
such a worthwhile exhibition and
charity.
The show enjoys an excellent repu-
tation among art lovers and collec-
tors for its unique and highly
personal approach to exhibiting the
works, which include paintings and
prints, drawing, photography and
sculpture. All the art on show is for
sale.
The ING Discerning Eye Exhibition 2011
will run in the Mall Galleries, London SW1,
from 10-20 November 2011. Admission is
free, 10am 5pm daily. The Discerning Eye
website is www.discerningeye.org
'A place to live 11'
by Trevor Burgess,
780
Damian Hirsts Dog
by Mychael Barratt,
175
Panic by Alan
Young, 320
Meet me on the
corner by Ann
Winder-Boyle, 650 Go fish card players by Jenny Wiener, 550
The dance of the
fossils by Camilla
Greenwell, 500
Self Portrait as Proteus I by Tai-Shan Schierenberg, 18,000
Badminton interrupted by migrating seagulls by Nicola Bealing, 1,900
Lifestyle
36 CITYA.M. 10 NOVEMBER 2011
Latin-fever hits London next year
with cuisine from Peru and Brasil
ARGENTINA
De La Panza in Islington follows in the
tradition of Argentinean bodegnes
informal but sociable restaurants. El
Toro Gaston Carrano is the brains
behind Buen Ayre the Broadway
Market favourite famous for their bife
de chorizo (sirloin) and lomo (fillet)
from the parilla. Argentina has been
famous for its steak, but this place is
about informality and food that has
survived generations. There will be
steak, of course, and stews, tapas, pis-
tos, escabeches and tartas. The half
Argentinean owner, George Rockett,
says Ive always wanted to open a
place like this with informal, delicious
food a real neighbourhood gem. De
La Panza, 105-107 Southgate Road, N1
3JS. Additional research: Caty Hirst
COLOMBIA
Sabor has lived on the Essex Road since 2004.
Its name means flavour, and thats exactly
what it delivers: the taste of Latin America.
Including Colombia, Brazil, Peru and
Argentina in its culinary repertoire, you can
expect empanadas, ceviches, palm-heart sal-
ads and papaya relish from Colombian nation-
al Esnayder Cuartas.
108 Essex Road, N1 8LX, www.sabor.co.uk
5 minutes with David Pont,
owner of Cabana restaurant
Q. Whats Cabana all about?
A.
The whole point of Cabana is that
its generous. Thats the sprit of bar-
becue. Its about Brazilians getting
together, eating together, making
Caipirinha, which gets better as sits in
your glass. Its a very social thing. Its
got the essence of being very Brazilian.
Q. What do you love about the Brazilian
way of eating?
A.
All-you-can-eat meat is doable in
Brazil because meat is very afford-
able. You can eat top rump all day long,
and the waiter will carve fillet all day
long. Meat can be expensive in London.
Q. What are you excited about?
A.
Pastels that, in Brazil, are tradition-
ally made by Japanese Paolistas
with a particular Japanese pastry that
bubbles when cooked. And the pork
and papaya sausages. Everything at
Cabana is inspired by Sao Paolo from
the music to the jeans-covered ban-
quettes. Youll forget that youre in the
windswept east end of London.
Q A
&
www.toweroondonicerink.com
In association with
0844 248 5044 & 0844 871 8814
TOLicerink @IceAtTheTower
B
O
O
K
N
O
W
!
Skate at
the Tower of London
19th Nov 2011 to 8th Jan 2012
10am 10pm (excluding Christmas Day)
BOLIVIA
El Rincon Quiteno is a gem of a neighbourhood
restaurant. Its a Bolivian and Ecuadorian
restaurant that offers a generous spirit and
portions. Expect plenty of beans, plaintain and
rice. Especially good are the saltenas (Bolivian
Cornish pasty). If you dont have time for a sit
down meal, grab some treats from the deli.
235 Holloway Road, N7 8HG, 020 7700 3670
BRAZIL
Brazilian food is having a good moment.
Theres Alex Atala with his fine dining
Sao Paulo restaurant D.O.M, which
recently climbed to seventh place in the
list of San Pellegrinos top 50 restau-
rants in the world. And then theres
Cabana, which opens this month, and
promises to bring the food and culture of
Sao Paolo to our fair shores. The Rio-
born David Pont (interview above) and
Jamie Barber are bringing a churras-
caria that will serve Brazilian street
snacks, like pao de queijo cheese dough
balls. Colour-coded skewers will be
walked round offering choices such as
baby back sticky ribs and chimichurri
butterflied rump steak. The Stratford
branch opened yesterday, and St Giles
branch opens next Wednesday.
Cabana, 7 Central Saint Giles Piazza,
WC2H 8AB, www.cabana-brasil.com
Helena Lee rounds
up London towns
Latin American
offering
PERU
You may not have considered Peruvian food
but by next year, you probably will, especially
with El Bullis Ferran Adria making a film
about Peruvian cuisine. Two Peruvian restau-
rants are opening next spring Ceviche and
Lima. Soon London will be awash with the cit-
rus-marinated fish dish, ceviche, aji (chilli pep-
per) the backbone of Peruvian cooking and
the Pisco Sour cocktail.
CEVICHE
Martin Morales and head chef Alejandro Bello
will bring ceviche and small sharing plates to
Soho in March next year. Think fish cold-
cooked in tigers milk the lime juice and
Peruvian aji chilli marinade, anticuchos (mari-
nated beef heart BBQ brochettes) and causas
(potato cakes stuffed with fresh crab and
prawns). www.cevicheuk.com
LIMA
Virgilio Martinez is the chef patron of Central
restaurant in Lima and has previously worked
with Gastn Acurio at top Lima restaurant
Astrid y Gaston serving Nueva Andina cuisine.
To London he brings his cevichera, Lima,
which will serve ceviche and regional dishes
such as shrimp chupe, anticuchos and causas.
T
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LIFES TOO SHORT
BBC2, 9.30PM
New series. Ricky Gervais and Stephen
Merchants follow-up to Extras, a
spoof documentary following the
showbiz life of actor Warwick Davis.
BRUNELS LAST LAUNCH: A TIME
TEAMSPECIAL CHANNEL4, 9PM
Tony Robinson joins a team of
archaeologists in Londons East End to
examine the disastrous launching of
the SS Great Eastern in 1858.
THE MENTALIST
CHANNEL5, 10PM
New series. Patrick Jane is taken into
custody for fatally shooting the man
he believed to be serial killer Red John.
With Simon Baker.
BBC1
SKY SPORTS 1
7pmLive European Challenge
Cup Rugby Union 10pmRingside
11pmTime of Our Lives 12am
Premier League World 12.30am
Americas Cup Uncovered 1am
Live NFL 4.30amRingside
5.30am-6amPremier League
World
SKY SPORTS 2
10amLive Masters Tennis 10pm
ATP Tour Uncovered 10.30pm
Americas Cup Uncovered 11pm
NFL: Total Access 12amTest
Cricket 2amRingside 3am
Americas Cup Uncovered
3.30amATP Tour Uncovered
4amRacemax 5am-6amLive
European Tour Golf
SKY SPORTS 3
7pmPremier League World
7.30pmLive Premier League
Snooker 11pmWWE: Late Night
Raw1amWWE: NXT
2am-5.30amPremier League
Snooker
BRITISH EUROSPORT
6pmLive Weightlifting 8pm
Boxing 9pmTest Cricket 11pm
Cycling 11.30pm-12.30amPoker
ESPN
7pmLive Under-21s
International Football 9.45pm
Legends of the Premier League
11.15pmESPN Kicks: Extra
11.30pmESPN Press Pass 12am
UFC: The Ultimate Fighter
1am-6amLive Australian Open
Golf
SKY LIVING
7pmCriminal Minds 8pmRinger
9pmFour Weddings US 10pm
Signed By Katie Price 11pm
Bones 12amCriminal Minds 1am
CSI: Crime Scene Investigation
2.40amMaury 3.30amBones
4.20amNothing to Declare
5.10am-6amJerry Springer
BBC THREE
7pmTop Gear 8pmDont Tell the
Bride 9pmThe Worlds Strictest
Parents 10pmEastEnders
10.30pmRussell Howards Good
News 11pmFamily Guy 11.50pm
American Dad! 12.35amThe
Worlds Strictest Parents 1.35am
Russell Howards Good News
2.05amDont Tell the Bride 3am
Young, Dumb and Living Off Mum
4am-5amThe Real Hustle: New
Recruits
E4
7pmHollyoaks: A Little Film
About Love By Jason Costello:
Special episode following Bart as
he races to confess his feelings to
Sinead. 7.35pmHow I Met Your
Mother 8pmThe Big Bang
Theory 9pmHappy Endings
9.30pmHow I Met Your Mother
10pmPhoneShop 10.30pm
Facejacker 11.05pmDirty Digest
11.55pmThe Big Bang Theory
12.50amScrubs 1.40amHow I
Met Your Mother 2.05am
PhoneShop 2.35amDirty Digest
3.15amRules of Engagement
3.35amDesperate Housewives
4.20am-6amSwitched
HISTORY
7pmHeir Hunters 8pmPawn
Stars 8.30pmAmerican
Restoration 9pmIce Road
Truckers 10pmStorage Wars
11pmPawn Stars 11.30pm
American Restoration 12amIce
Road Truckers 2amOil Riggers
3amHeir Hunters 4amAmerican
Pickers 5am-6amMonster
Moves
DISCOVERY
7pmMythbusters 8pmCoal
9pmIce Pilots 10pmFactory
Line 11pmWeird or What? 12am
Bear Grylls: Born Survivor 1am
Ice Pilots 2amDeadliest Catch
3.50amRiver Monsters 4.40am
Nasas Greatest Missions
5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmSpecial Delivery: Baby ER
8pmI Didnt Know I Was
Pregnant 9pmMy Naked Secret
10pmMy Strange Addiction
11pmMystery Diagnosis 12am
My Naked Secret 1amMy
Strange Addiction 2amMystery
Diagnosis 3amI Didnt Know I
Was Pregnant 4amA Baby Story
5am-6amBringing Home Baby
SKY1
7.30pmFuturama 8.30pmThe
Simpsons 9pmGlee 10pmHouse
11pmRoss Kemp: Extreme World
12amLaw & Order 1amRoad
Wars 1.50amBorder Invasion
USA 2.40amMental 4.20am
Paul McKenna: I Can Change
Your Life 5.10am-6amLiza and
Hueys Pet Nation
BBC2 ITV1 CHANNEL4 CHANNEL5
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&
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmEastEnders: BBC News
8pmMotorway Cops
9pmDIY SOS: The Big Build
Children in Need Liverpool
10pmBBC News
10.25pmRegional News 10.35pm
Question Time 11.35pmThis Week
12.20amHoliday Weatherview
12.25amSign Zone: Whats Fuelling
Your Energy Bill? Panorama
12.55amCountryfile 1.55am
Antiques Roadshow2.55amJames
Mays Things You Need to Know
3.25amHome Cooking Made Easy
3.55am-6amBBC News
6pmEggheads
6.30pmStrictly Come Dancing
It Takes Two
7pmGreat British Food Revival
8pmMasterChef: The
Professionals
9pmRev
9.30pmCHOICE Lifes Too
Short
10pmFrank Skinners
Opinionated
10.30pmNewsnight: Weather
11.20pmBurnistoun
11.50pmWomen!
12.25amDamages
1.25amBBC News 4am-6amBBC
Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmLife After the Riots:
Tonight
8pmEmmerdale
8.30pmCoronation Street
9pmThe Jury
10pmITV News at Ten
10.30pmLondon News
10.35pmPiers Morgans Life
Stories: Rolf Harris 11.35pmThe
Choir That Rocks 12.30amThe
Zone; ITV News Headlines 2.35am
Life After the Riots: Tonight 3am
ITV Nightscreen 4.35am-5.30am
The Jeremy Kyle Show: Guests air
their differences.
6pmThe Simpsons 6.30pm
Hollyoaks 7pmChannel 4 News
7.55pm4thought.tv 8pmBeenys
Restoration Nightmare 9pm
CHOICE Brunels Last Launch: A
Time Team Special 10pmThe Joy
of Teen Sex 11.05pmRory Peck
Awards 11.10pmThe Secret
Millionaire 12.10amThe Film Show
12.40amMusic on 4: Professor
Green Unseen: After Hours 1.10am
Inside SBTV: From Bedroom to
Boardroom1.35am4Play: Birdy
1.50am4Play: Maverick Sabre
2amThe Crush 2.55am
Accidentally on Purpose 3.20am
Southland 4.05amSt Elsewhere
4.55amUnreported World
5.20am-6.05amCountdown
6pmHome and Away
6.25pmOK! TV
7pm5 News at 7
7.30pmLost Heroes of World
War One: 5 News Update
8pmBomber Boys: Revealed:
5 News at 9
9pmBig Brother
10pmCHOICE The Mentalist
11pmBig Brothers Bit on the
Side
12amSuperCasino
4amChinese Food in Minutes
4.05amHouseBusters 4.30am
HouseBusters 4.55amRough Guide
to Eco Escapes 5.10amHouse
Doctor 5.35am-6amHouse Doctor
1 2 3 4
5
6 7 8
9 10 11 12
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15 22 4
17 32
12 14
34 10
18 16
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8 26
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38 12
10 7 7
24
12
11
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9
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6
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42
24
11
25
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3
19
27
Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Gentle, indulgent (4)
3 Fish-eating bird (6)
5 Uncooked (3)
6 Part of the ear (4)
7 Form of
communication (6)
9 Plot to carry out
some harmful or
illegal act (10)
14 Turning on a pivot (10)
17 Paying customer (6)
19 Endorsement made
in a passport (4)
20 Chopping tool (3)
21 Insect with large
pincers at the rear
of the abdomen (6)
22 Volcanic rock (4)
DOWN
1 Choose (6)
2 Lock of hair (5)
3 Bird which hoots (3)
4 Mineral used as
an abrasive (5)
8 Beverage (3)
10 Novel (3)
11 Frost (3)
12 Breath or spirit in
Chinese philosophy (3)
13 Herbivorous lizard of
tropical America (6)
14 Spicy sauce
to accompany
Mexican food (5)
15 Strong anger (3)
16 Flush (5)
18 Childrens game (3)
R
E
D
I
L G
N
O
O
4

4
4

4

A D C A T C H E R
F R I A R A U
F W U N I C O R N
O K A Y S H E
R L H U G E K
D A I S S T S A R
G A J A R H A
E H U N I O N
A N T A C I D N K
D R D W E L L
C A R A W A Y R E
9 2 8 7 4 8 7 1
4 1 6 2 6 9 8 5
5 9 1 2 4 5 3
2 4 7 3 9 9 2
1 3 7 9 5 8 2
3 7 9 8 3 1 6 7
6 3 8 5 4 7 9
9 3 2 7 1 2 1
7 4 8 6 9 8 9
8 1 9 4 9 6 8 3
6 2 3 1 7 2 4 1
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
FACSIMILE
Lifestyle | TV&Games
37 CITYA.M. 10 NOVEMBER 2011
ENGLAND players will be allowed to
wear poppies in Saturdays friendly
against Spain after Fifa last night
finally relaxed its hardline stance fol-
lowing pleas from Prince William
and prime minister David Cameron.
Fifa refused to cave in completely
and allow poppies to be embroidered
onto Englands shirts, but have per-
mitted players to wear black arm-
bands embellished with the flowers
to mark Remembrance Sunday.
It followed a week of wrangling
that culminated yesterday in the
countrys leaders making impas-
sioned pleas for the world governing
body to reconsider their outright ban
on poppies during the game.
Prince William, who had earlier
written a private letter to Fifa implor-
ing them to relent, welcomed the
compromise. A spokesman for St
Jamess Palace said: The Duke is
happy with this resolution.
Cameron also toasted the decision,
hours after he had spoken out on the
issue in the House of Commons. A
Downing Street spokesman said: Its
a sensible way forward. Earlier he
told MPs during prime ministers
questions: It seems outrageous. I
hope Fifa will reconsider. He also
wrote to Fifa president Sepp Blatter to
plead the Football Associations case.
Far-right group the English
Defence League also became
embroiled in the issue when two of
its members climbed onto the roof of
Fifa headquarters in Zurich yesterday
to display a banner protesting against
the poppy ban.
The FAs hopes of succeeding in
their campaign looked doomed to
failure on Tuesday night when Fifa
released a so-called final statement
insisting there would be no change in
policy. It had maintained from the
outset of the row that wearing pop-
pies would contravene their regula-
tions, which outlaw symbols of a
political, religious or commercial
nature on international shirts.
War veterans, England players
Frank Lampard and Jack Wilshere
and politicians had joined forces to
condemn the ban, but apparently to
negligible effect.
Sports minister Hugh Robertson on
Tuesday wrote to Fifa stating the FAs
case and insisting the poppy was not
political, religious or commercial.
ENGLAND VICTORY AS
FIFA AGREE TO POPPY
BY FRANK DALLERES
FOOTBALL

Sport
38
ENGLAND manager Fabio Capello
admits the prospect of facing World
Cup holders Spain has been rendered
an even more daunting prospect than
normal as a result of the absences of a
clutch of key players.
The Italian has opted to leave out
Wayne Rooney, suspended for the
first three games of next summers
European Championships, while
Steven Gerrard and Ashley Young are
injured.
Were playing Spain without any
players, he said ahead of Saturdays
friendly. Were missing Rooney,
Gerrard, Terry. We will do our best.
Playing Spain at Wembley is a
tough test. Im going to give a run out
to new and young players to see their
potential. Were going to be under lots
of pressure from our fans.
Rooneys omission is likely to allow
Darren Bent an opportunity to
improve on his recent record of four
goals in his last five international
appearances.
The Aston Villa striker said: I cant
count my chickens but if I keep play-
ing well, and the ball keeps flying in
the net, then thats all I can do.
Spain is the
ultimate test,
says Capello
BY JAMES GOLDMAN
FOOTBALL

BRITISH No1 Andy Murray admitted


he was still feeling his way back to
full fitness during his second round
win over Jeremy Chardy at the Paris
Masters.
Murray, aiming for a fourth consec-
utive tournament victory, extended
his winning run to 17 matches with a
routine 6-2, 6-4 defeat of the French
wildcard.
The 24-year-old was forced to with-
draw from last weeks Basel tourna-
ment with a leg injury, and despite
brushing his opponent aside in just
over an hour, showing no ill-effects,
Murray conceded hes not yet back up
to full speed.
I felt OK, I felt maybe my legs were
not as strong and I did not move as
well as I can do, said Murray.
But I played pretty well for the
most part. I played a relatively solid
match and you need to do that
against him.
Murray faces American 13th seed
Andy Roddick today and as well as
niggling fitness concerns, the Brit is
still to adjust to the speed of the
courts.
He added: After you play on the
courts a few times they definitely
speed up. It is definitely quicker.
It is strange the balls and the
court dont really go that well togeth-
er. It is a weird feeling.
Elsewhere, world No1 Novak
Djokovic, who decided to risk his
damaged shoulder, beat Ivan Dodig
6-3, 6-4 and third seed Roger Federer
overcame Adrian Mannarino 6-3, 6-3.
WEST HAM co-owner David Gold has
admitted for the first time his club
are not completely committed to tak-
ing up residency of the Olympic
Stadium following next summers
London Games.
The Championship club were
poised to sign a 125-year lease last
month to move in to the 486m stadi-
um, before the Olympic Park Legacy
Company (OPLC) launched a new ten-
der process amid legal challenges
from Spurs, Leyton Orient and the
European Commission.
Despite the collapse of that move,
West Ham and their vice-chairman
Karren Brady remained bullish saying
we have never dropped the baton
and we wont now, while their bid
was also unequivocally backed by
Mayor of London Boris Johnson.
And although Gold reiterated his
desire to see the Hammers relocate,
he took a significant step backwards
by suggesting their is some doubt
about the viability of the Stratford
site.
I have mixed feelings, said Gold.
The Olympic Stadium is very excit-
ing, but we need a consultancy proce-
dure with our fans, that is important.
What we cant do is nothing. I
believe we are the eighth largest sup-
ported club in the country, and yet
we perform more like the 20th
biggest.
The obvious change that everyone
is looking at is the Olympic Stadium.
But there is a doubt, there are issues
that are unresolved.
DISGRACED former Pakistan captain
Salman Butt has filed an appeal
against the 30-month jail sentence he
was handed last week for the part he
played in the spot-fixing scandal.
Butt, fast bowlers Mohammad Asif
and Mohammad Amir, as well as
London-based sports agent Mazhar
Majeed, have all begun spells behind
bars for conspiring to and carrying
out the act of bowling deliberate no-
balls in the Lords Test against
England last year.
After sentencing the judge told all
three players they would be released
half way through their jail terms,
depending on good behaviour.
Gold has doubts over West
Ham Olympic Stadium move
FOOTBALL

TENNIS

CRICKET

Jailed former
Pakistan skipper
to launch appeal
Leg injury still concerns
Murray despite victory
FRIDAY
Fifa president Sepp
Blatter (above) rejects
a request from the
Football Association for
England players to
wear poppies against
Spain in this weekends
match against Spain at
Wembley
SUNDAY
England and Chelsea
star Frank Lampard
(above) joins war vet-
erans in condemning
Fifas stance, with a
spokesman for the
player saying: Its
something he is pas-
sionate about
TUESDAY AM
FA general secretary
Alex Horne makes a
fresh appeal, while
sports minister Hugh
Robertson (above)
writes to Fifa insisting
poppies would not
break rules on political
emblems on shirts
TUESDAY PM
Fifa releases a final
statement insisting it
will definitely not
relent and allow pop-
pies on shirts, despite
one of its vice-presi-
dents, Jim Boyce
(above) urging them to
exercise common sense
WEDNESDAY
Prince William and PM
David Cameron both
write to Fifa demand-
ing it reconsiders. Later
the FA announces Fifa
has permitted poppies
to be displayed on
black armbands worn
by England players
POPPYGATE: HOW THE ROW UNFOLDED
Capello is without Rooney for Saturdays
friendly against Spain Picture: REUTERS
SPAINS meteoric rise to the pinnacle
of world football owes much to an
Iberian back-to-basics coaching revo-
lution, according to a man with one
of the best CVs in the business.
A decade ago Spain rivalled
England as big tournament flops, but
they arrive at Wembley for Saturdays
friendly as undisputed global fron-
trunners, having swept all before
them at the last World Cup and
European Championship.
Manager Vicente del Bosque also
has an embarrassment of riches at his
disposal, with even the outrageously
talented likes of midfielders David
Silva and Cesc Fabregas limited to
cameo appearances.
The secret? Raymond Verheijen,
the outspoken Dutch coach who has
worked at the last six major interna-
tional tournaments, for Chelsea and
Manchester City and now assists
Wales boss Gary Speed, believes he
has the answer.
Over the last 10 years you can see a
change, Verheijen (right), who has
also worked with Barcelona and
Malaga, told City A.M. Spanish coach-
es have a really good feel for the
essence of the game. Instead of
introducing all kinds of fancy
things from outside of football they
have gone back to basics and
focused on what coaching football
actually means.
The technical skill, the passing
game, decision making. They
have put all these football
elements in the right
context. Passing game
is first decision mak-
ing, and then skill,
because first you
have to make the decision and then
you have to execute it.
They focus on decision making in
every single exercise. They dont iso-
late technique training. They have
also structured it in a good way, going
from simple to more com-
plex in later ages.
Verheijen, with
long-time mentor and
former Chelsea man-
ager Guus Hiddink,
hopes to bring some of
their accumulated wis-
dom to British coaches
with the launch of the
UK Football
Academy. The
first sympo-
sium takes
place at
Arsenals
Emirates
Stadium in February and will, he
says, offer specialist modules for
coaches of all levels.
The 40-year-old is reluctant to add
his voice to criticism of British coach-
ing, but does concede there is a need
to catch up with European rivals
such as Germany, whose own coach-
ing revolution has spawned a genera-
tion of talented and trophy-winning
youngsters.
I think the level of coaching in the
UK is not low. But there is a golden
opportunity for UK coaching to catch
up with Spain, or Holland, he adds.
In general terms there is a need
for coaching in the UK to improve.
Especially in relative terms not in
absolute terms. In Holland, Spain and
Germany, my experience is that it
goes quite quickly. Coaching in
Germany has developed very quickly
over the last 10 years.
Results
How Spain left their
nearly men tag behind
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39
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SPORT | IN BRIEF
Johnson receives Moody backing
RUGBY UNION: Former England captain
Lewis Moody insists the RFU should
stick by manager Martin Johnson and
allow him the opportunity to lead the
Red Rose to the 2015 World Cup. The
most important thing is that there are no
knee-jerk reactions. It is essential for me
Johnno continues, said Moody who
retired from the international game last
month.
Clarke keeps Aussies alive
CRICKET: An unbeaten century from
Australia captain Michael Clarke rescued
his side on day one of the first Test
against South Africa in Cape Town. The
tourists finished the day struggling on
214-8 with Clarke on 107 after Dale
Steyn had returned figures of 4-31.
PFA let down by Tevez behaviour
FOOTBALL: PFA chief executive Gordon
Taylor says he is very disappointed at
Manchester City's Carlos Tevez for miss-
ing training and returning to Argentina.
City have instructed their lawyers to
take action, saying striker Tevez, 27, had
been refused permission to go home.
email sport@cityam.com
S
O common sense finally pre-
vailed in the battle for Englands
footballers to sport poppies on
their shirts. The big question is:
what on earth took so long?
Poppies embroidered on black
armbands was mooted days ago and
has seemed the most sensible solu-
tion to this thorny issue ever since.
England get to make the one-off
gesture that they were seeking, while
Fifa gets to preserve the apparent
sanctity of its rules on shirt adorn-
ments.
We may never know exactly what
caused Sepp Blatter, the world gov-
erning bodys president, to relax his
organisations intransigence and
agree a compromise.
Days of increasingly outraged
media coverage decrying Fifas
stance showed little sign of weaken-
ing his resolve.
Pleas from one of his own vice-
presidents, the Northern Irishman
Jim Boyce, for Blatter to treat this as
a special case, appeared to fall on
deaf ears.
So what made him crack? Perhaps
it was correspondence from Prince
William, although last years failed
World Cup bid did little to cement his
influence at Fifa.
Did the unexpected presence of
far-right protesters on the roof of
Fifas HQ sway him? Or perhaps it
was a call from ally and ethical
sounding board Placido Domingo?
Either way the protracted wran-
gling did Fifas already sullied image
few favours unlike the Football
Association, for whom this is a wel-
come change of fortune.
For weeks the FA has been drown-
ing in negative publicity over England
captain John Terrys investigation for
alleged racial abuse, which he denies.
Now it has a victory to celebrate,
and one in which the national gov-
erning body has demonstrably car-
ried the fight for a cause far greater
than mere self-preservation.
Spain face England as world and European champions Picture: ACTION IMAGES
Prioritising basics is
secret, top coach
Raymond Verheijen
tells Frank Dalleres
COMMENT
FRANK DALLERES
MT4
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