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FTSE 100 5,517.44 -1.60 DOW 12,096.16 +17.18 NASDAQ 2,686.20 +28.98 /$ 1.58 -0.02 / 1.17 unc /$ 1.35 -0.01
Eurozones
woes leak
to the core
FEARS of debt contagion seeping
into the Eurozones core were
heightened yesterday, as the cost of
borrowing for triple-A-rated coun-
tries like France and Austria jumped.
Adding to the woes, yields on
Italian 10-year debt yet again sur-
passed the seven per cent danger
mark, climbing to 7.07 per cent.
Beyond that level Greece, Portugal
and Ireland all sought bailouts.
Investors again favoured German
bunds over French bonds, with the
spread rising to new highs of 1.911
per cent. Belgian and Austrian yields
rose, while Dutch and Finnish bor-
rowing costs also crept upwards,
unsettling fund managers.
Their sudden rise is a worrying
sign that investors may be less will-
ing to invest in the Eurozone alto-
gether, warned Capital Economics
John Higgins.
Indeed, the euro fell sharply
against the dollar for the second day
running, Higgins added. The
European single currency slipped to
$1.35 during the days trading.
Meanwhile discontent spread to
investors in Spanish bonds. The gov-
ernment sold 3.2bn (3bn) in 12-
and 18-month debt, short of its
3.5bn upper target. The yield came
in at 5.022 per cent and 5.159 per
cent respectively, the highest levels
since 1997. Meanwhile the UK con-
tinued to benefit from a perceived
safe haven status. Yields hovered
around record lows, touching 2.11
per cent before closing at 2.15 per
cent on ten-year debt.
EUROZONE NEWS: P2, P6, P8
BY TIM WALLACE AND JULIAN HARRIS
EUROZONE
A woman is dragged away from the Zuccotti park protest camp in New York following a late-night police raid Picture: REX
THE CITY of London yesterday vowed
to press ahead with plans to evict pro-
testers from its land, hours after US
police tore down a connected campsite
in New York.
Legal efforts to move the St Pauls
protesters are set to resume, without
the explicit support of the church,
after the camp rejected an offer to
leave in the New Year.
The latest twist in the long-running
saga came as US riot police shut down
the Zuccotti Park camp the birth-
place of the disjointed occupy move-
ment in a midnight raid.
Nearly 150 activists, including
around a dozen who had chained
themselves to each other and trees,
were hauled away by police carrying
shields and batons.
In its fresh bid to remove protesters
from City-owned land outside St
Pauls, the City of London Corporation
will demand Occupy LSX removes
tents and equipment within 24 hours.
It says it will then proceed with high
court action.
The move could be complicated by
centuries-old uncertainty over the
dividing lines between City and
church land in the Square Mile, as well
as potential challenges under the
Human Rights Act.
Senior clerics at St Pauls have been
split over how to respond to protesters,
NEWYORK KICKS
OFF CRACKDOWN
City of London restarts legal action against protest camp
BY PETER EDWARDS AND STEVE DINNEEN
POLITICS
www.cityam.com FREE
10M TELECOMS BOSS QUITS
AFTER 624M WRITEDOWN
JOHN PLUTHERO EXITS P10
resulting in three resignations, and
yesterday the cathedral confirmed it
will not join the legal action.
Stuart Fraser, policy chairman of
the Corporation, said he wants all the
tents cleared from public highways
around the cathedral and pledged to
pursue talks alongside court action.
He said: We are getting reports
about vulnerable people, cases of late-
night drinking and other worrying
trends, so its time to act. It will take
time but we are determined to see this
through.
The New York eviction, led by Mayor
Michael Bloomberg and Brookfield
Office Properties, the park owners, fol-
lowed growing concerns over health
and safety. They said areas of the park
smelled of human waste and there
were reports of sexual assaults, thefts
and drug dealing.
Campaigners vowed to set up camp
in another New York park and hun-
dreds of people were seen dragging
their sleeping bags and tents to Foley
Square.
In a separate raid on a camp in
California, police used tear gas and
stun grenades to clear the area, while
sites in Oregon, Vermont, Denver,
Colorado, and Salt Lake City have also
been cleared in recent days.
Issue 1,512 Wednesday 16 November 2011
Certified Distribution
03/10/11 till 30/10/11 is 100,123
ENGLAND 1
SWEDEN 0
CAPELLOS SIDE
END UNBEATEN 2011
WITH WIN P38 & 39
News
2 CITYA.M. 16 NOVEMBER 2011
Italy close to
new cabinet
NEW Italian Prime Minister Mario
Monti announced last night that he
was preparing to reveal his new cabi-
net to the President this morning.
Markets rose on the news, as his
government may bring the prospect
of a stable Italy closer, and so lessen
the severity of the Eurozone crisis.
European stocks closed down, but
when Monti announced his plans US
markets rose, though swiftly pared
back. The Dow ended the day up 0.14
per cent.
The unelected Monti was appoint-
ed on Sunday and is expected to lead
a small government of technocratic
experts who intend to force
through the fiscal reforms Italy needs
to avoid defaulting on its large debts.
After revealing his cabinet he will
need approval from parliament
before getting to work.
Monti, whose government will try
to reverse a disastrous collapse of
market confidence in Italy, said the
first day of talks had been construc-
tive, and that politicians understood
the seriousness of Italys situation.
But he also said his government
should last until the next scheduled
elections in 2013, in contrast with
widespread predictions that he will
have to make way for early elections
once he passes the reforms promised
to Europe.
BY HARRY BANKS
EUROZONE
HGCAPITAL IN TALKS TO BUY BACK IAS

HgCapital, the mid-market private
equity group, is in talks to buy back
the main part of Iris Software Group
four years after it sold the UKs largest
private business software maker to
Hellman & Friedman. The buy-out
house has approached its larger US
rival with a 425m proposal to
acquire IAS, the accountancy and pay-
roll software unit that makes up the
bulk of Iris valuation.
LAWYER SNUBS F1 BRIBERY CASE
A British lawyer closely linked to the
running of Formula One has declined
to appear in court in the trial of a
German banker accused of receiving
bribes in connection with the $1.7bn
sale of the motorsport. Stephen
Mullens had been due to give evi-
dence on Tuesday as a witness in the
trial of Gerhard Gribkowsky in
Munich. The court was told Mullens
was using his right not to have to
answer questions that might cause
him to incriminate himself.
BORDERS CHIEF SLAMS HOME OFFICE
The former Border Force chief
accused of sanctioning a breach of
security rules at UK ports and air-
ports has told MPs that he is no
rogue officer and strongly disputed
claims by the home office that he
acted improperly. Brodie Clark, who
was suspended earlier this month for
allegedly extending a home office
pilot scheme to relax border checks
without permission, said he had been
meticulous in following ministerial
instructions on the trial programme.
MEXICAN FIREBRAND TO RUN
Mexicos firebrand campaigner and
self-proclaimed champion of the poor
has confirmed that he would run as a
presidential candidate in next Julys
election. Andrs Manuel Lpez
Obrador said that he would run as
the candidate of the left.
WM MORRISON RESISTS BOXING DAY
It was once a day for dozing off excess
and conjuring new and ever more
ingenious uses for leftover turkey. But
now only one supermarket group
wants to keep it that way and it is
looking increasingly lonely. Wm
Morrison is resisting the stampede
among stores to open on Boxing Day,
leaving only it and the John Lewis part-
nership in the traditionalists corner.
SOHO HOUSE TO BRANCH OUT
It was founded 16 years ago as a haven
from the hubbub of Soho. Now, plans
to turn Soho House into a global chain
look set to receive a boost from a
wealthy overseas investor. The Times
understands that Richard Caring and
Nick Jones, the owners of the group,
are in talks over the sale of a signifi-
cant minority stake to an outside
investor that would value the compa-
ny at between 250m and 300m.
OFGEM FLAGS MAJOR FRAUD THREAT
The head of the UKs energy regulator
told MPs that his biggest concern is
that a newspaper front page will one
day read: Ofgem in fraud.
Describing the watchdog as a multi-
billion pound clearing house for
money funding various energy
schemes, Alistair Buchanan, its chief
executive, said fraud was a huge
issue.
YELL BONDS BOUGHT BY BOB WIGLEY
Yell chairman Bob Wigley has taken
the unusual step of buying the bonds
of the indebted directories company
as it attempts to convince lenders to
accept changes to its debts terms.
Wigley bought Yell senior debt yester-
day with a face value of $1m
(625,260) for about 200,000, as well
as increasing his stake in the strug-
gling company with the purchase of
shares worth over 100,000.
SERVICE FEE HITS MF CUSTOMERS
Customers with funds trapped by the
collapse of MF Global could be hit
with additional costs as the trustee
overseeing the broker-dealers liqui-
dation outlined potential costs for
returning wire transfers. Trustee
James Giddens sought to apply a ser-
vice fee of up to $5,000 for returning
misdirected wire transfers sent to
MF Globals brokerage unit, accord-
ing to documents filed with the bank-
ruptcy court.
WORRIES OVER HUNGARY GROW
Hungarys central bank sounded the
alarm yesterday as international
investors continued to dump
Hungarian assets amid concerns over
the country's economic management
and over the impact of the euro crisis
on its banks and sovereign rating. The
National Bank warned the drop in its
currency escalates the risk of inflation.
WHAT THE OTHER PAPERS SAY THIS MORNING
Motorists are massively over-taxed
BRITISH motorists are massively over-
taxed. In 2009/10, 66p in each pound
spent on petrol and diesel was pocket-
ed by the Exchequer, with just a third
going to retailers and oil companies.
Taking just fuel and vehicle excise
duty (and ignoring other taxes, includ-
ing value added tax) the government
raises about 31.5bn a year from
motorists. Spending on building and
improving roads was just 10bn at last
count. The social cost of motoring has
plausibly been estimated at 3.5bn a
year in the form of noise and pollu-
tion. If this were so, green taxes would
be too high to the tune of 18.1bn, or
293 per person. But even if this esti-
mate of the social cost were three
times too low and the real cost were
10bn, the tax take would remain
11.6bn a year too high. There are lots
of other ways motorists are under
attack, including Westminster
Councils wrong-headed new evening
and weekend parking charges, which
are bound to destroy the viability of
numerous theatres, restaurants and
shops. The problem, of course, is that
most other activities in todays Britain
are also heavily over-taxed. The tragic
truth in the current intellectual and
economic climate is that the situation
will probably get even worse before it
eventually improves.
US RECOVERING SLOWLY
IT is not all bad news. The American
economy is showing signs of life again.
The best indication was that Wal-Mart,
the giant US retailer, finally reported
its first quarter of increased US sales,
breaking a dismal nine quarter run of
declines. This improvement is indus-
try-wide, as witnessed by the 0.5 per
cent month on month rise in retail
sales in October. The latest manufac-
turing surveys arent bad either, sug-
gesting expansion in factory output.
Jobs numbers have been revised
upwards going back a few months.
The economy is likely to expand at a
semi-decent rate in the fourth quarter,
as it did in the third. Given the impor-
tance of America to global demand,
this is also very good for Britain.
This doesnt mean that the US is
our of the woods; it faces, among
other problems, the possibility of
renewed budgetary paralysis. Millions
of people remain affected by unem-
ployment or under-employment,
wealth levels have plummeted and
morale remains subdued. Americas
level of economic output is now slight-
ly higher than it was at the peak of the
boom, before the recession. This is in
stark contrast to the Eurozone, Japan
and Britain, where output has yet to
catch up. It is bizarre, therefore, that
America still feels even more scarred
by the downturn than Britain.
BUT UK IN THE DUMPS
So much for todays dose of relative
optimism. There is an interesting fol-
low-up to yesterdays column, where I
bemoaned Britains culture of exces-
sive private and public sector leverage
(still at 291 per cent of GDP excluding
financial firms), and predicted years
of depressed consumer spending as
we slowly readjust.
Andrew Lilico of Europe Economics
estimates that the UKs sustainable
rate of growth over the next decade
may have fallen to just 1.1 per cent a
year. Yet the Office for Budget
Responsibility still estimates sustain-
able growth to be 2.35 per cent per
year, falling to 2.1 per cent by 2015.
Somebody has got it wrong; if, as I sus-
pect, it is the OBR the coalition as well
as Labour will have to revise all of
their spending plans.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
APPLE yesterday named long-serving
director Arthur Levinson as its new
chairman, filling a post left vacant by
the death of co-founder Steve Jobs.
Levinson, chairman of biotechnolo-
gy giant Genentech, has been on the
Apple board since 2000, serving on
both its audit and finance commit-
tees. Apples stock rose more than 2.5
per cent in the wake of the news,
which is seen as another step towards
building the next generation of Apple
executives as the firm comes to terms
with life after Jobs.
Walt Disney chief executive Bob
Iger, who had a strong relationship
with the late Silicon Valley icon, also
joins the board of the worlds largest
technology company.
Chief executive Tim Cook said:
[Levinson] has been our longest serv-
ing co-lead director, and his insight
and leadership are incredibly valu-
able to Apple, our employees and our
shareholders.
BY STEVE DINNEEN
TECHNOLOGY
Levinson takes Apple job

Art Levinson has been a long serving director at Apple
NEWS | IN BRIEF
Paulson sells third of his bullion
Hedge fund manager and long-time gold
bull John Paulson slashed his bullion
holdings by a third in the third quarter,
data showed, dampening sentiment in
the gold market yesterday. Paulson & Co
cut its holding in the SPDR Gold Trust to
20.3m shares from 31.5m at the end of
the second quarter, US regulatory filings
revealed. The sale is equivalent to about
1.1m ounces of gold worth about
$1.94bn, based on current prices.
Paulson held on to his large bullion
investments earlier in the year after bil-
lionaire financier George Soros liquidat-
ed almost his entire $800m stake in
gold in the first quarter.
BlackBerry passes 8m UK users
RIM, the maker of Blackberry smart-
phones, said its subscriber base in the
UK had passed the 8m milestone as it
unveiled a new cloud-based music serv-
ice. Blackberry, once an dispensable
executive accessory, has been winning
younger subscribers attracted by its
BBM messenger service. However its
share of the global market has dwindled
in the face of competition from Apples
iPhone and Googles Android.
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
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self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editors
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Mario Monti says he
has serenity and
conviction that the
new Italian cabinet
will govern until 2013
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Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Jo Simpson
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
THE UK is embroiled in a vocifer-
ous dispute with Brussels over reg-
ulations that would prevent the
government from implementing its
flagship banking and regulatory
policies.
At a committee of MPs and lords,
chancellor George Osborne (pic-
tured) admitted that he is con-
cerned about current EU
proposals on capital rules, which
would make it impossible for the
UK to put in place its new macro-
prudential regulator and to
implement recommendations
made by the Vickers
Commission on banking.
Theres clearly an
area of concern that
the potential direc-
tive in this area
does not provide
sufficient discre-
tion... to put in
place macro-pru-
dential tools and run something
like certain Vickers arrangements,
said Osborne. Weve made our
point very vociferously, he added.
The flashpoint over capital rules
adds to a growing pile of issues on
which Britain is at loggerheads with
Brussels. HM Treasury is embroiled
in a legal dispute with the ECB over
clearing house rules and said
it could also sue over pow-
ers given to the
European Securities &
Markets Authority
(ESMA).
Osbornes admission
comes after City A.M.
revealed that the Treasury
thinks the EUs current
position makes its
policies subject to
legal challenge
unless there are
s i g n i f i c a n t
changes to the
draft rules
being dis-
cussed.
Chancellor
says EU could
block Vickers
GEORGE Osborne came under pres-
sure yesterday to do more to help
motorists struggling with the price of
fuel. MPs unanimously approved a
motion without the need for a
vote calling for action on sky-high
petrol prices after Cameron effective-
ly gave his party freedom to break
from the official line.
The Tory-led motion was a backlash
against plans to increase fuel duty
next year, with MPs arguing the meas-
ures are a tax too far for stretched
household budgets.
The motion is non-binding and the
Treasury reiterated its view that
major decisions must wait until next
years budget, adding that if fuel duty
was cut, the money would have to be
found from elsewhere.
The coalition plans to increase fuel
duty by 3p a litre next year, costing
around 1.50 extra to fill the average
car. However, he has already scrapped
the automatic fuel tax escalator,
whereby fuel duty rose at 1p above
inflation, and postponed a 1p rise ini-
tially slated for the summer until
next year.
Tory MP Robert Halfon, who cham-
pioned the motion, said the govern-
ment must prove it is ready to cut
taxes for millions of British people
and not just for millionaires.
Osborne under
pressure due to
the price of fuel
Cameron came under fire for his apparent selfishness over Europe Picture: REUTERS
BY JULIET SAMUEL
REGULATION
BY STEVE DINNEEN
POLITICS
News
A SENIOR member of German
Chancellor Angela Merkels conserva-
tive bloc has called on the UK to be
less self-centred in its relationship
with Europe.
Volker Kauder, conservative leader
in parliament, said: The British are
not members of the currency union
but they are members of Europe and
they also have a responsibility for the
success of Europe.
Merkel and finance minister
Wolfgang Schaeubles urgings that
the EU should rush through treaty
changes for closer political union
between its 27 members to under-
pin the currency put Conservative
leader David Cameron in a
quandary.
The Prime Minister, who will visit
Merkel in Berlin on Friday, just last
month faced down a revolt by some
of his own MPs who wanted a refer-
endum on EU membership.
At the same time, Cameron has to
encourage the Eurozone to integrate
further to avoid a currency collapse
that would also be damaging for the
UK.
The City is especially concerned
about Germanys wish for a tax on
financial transactions, which Kauder
said would put the financial industry
on the same footing as other sectors.
Germany brands UK self-centred
over its dealings with Eurozone
EUROZONE
SERGIO Ermotti is expected to swing

the axe at UBSs investment bank
after being named chief executive of
the group.
Analysts said the appointment of
Ermotti, and the decision to replace
chairman Kaspar Villiger with former
Bundesbank president Axel Weber in
May, a year earlier than expected,
would reassure investors in the after-
math of the $2bn rogue trading
scandal.
Analysts at JP Morgan have forecast
an extra 1,700 job cuts while Swiss
media have suggested 1,500.
Ermottis rapid rise since joining
UBS in April has not been untrou-
bled, however, with sources saying
Weber had seen him as merely a fall-
back option for the top job.
Headhunters Egon Zehnder had
spent nearly two months looking at
alternatives, such as Deutsche Bank
risk chief Hugo Baenziger, and for-
mer JP Morgan chief Bill Winters.
Yesterday Weber said he welcomed
the appointment of Ermotti, the
suave former deputy head of
UniCredit who has played up his
Swiss roots in recent months.
Ermotti, who will explain the shift
in UBSs business plan at an investor
day in New York tomorrow, said the
bank will focus more on its wealth
management businesses.
A focused, less complex and less
capital-intensive investment bank
and our asset management business
are also key elements for growing our
wealth management franchise.
New UBS boss
Ermotti set to
cut more jobs
BY PETER EDWARDS
BANKING
News
SUAVE, smooth and Swiss, Sergio
Ermotti was seen by many but
not all as the man to restore the
fortunes of UBS.
The former deputy head of
UniCredit spent most of his early
career at Merrill Lynch, where he
rose to become co-head of global
equity markets.
The well-dressed executive is
seen as a bridge-builder, whose
style contrasts with the gruff man-
agement style of his predecessor,
Oswald Gruebel.
Not everything has gone accord-
ing to plan for Ermotti, however,
since he began filling in for
Gruebel.
He came under fire in the Swiss
press over his involvement with a
chain of luxury hotels, the holding
company of which was based in a
tax haven, Panama. He said the
business had its tax affairs in
order and he had been working to
bring its base to Switzerland.
He did not endear himself to
politicians in Berne, however,
when he said Switzerland had
grown prosperous through unde-
clared funds.
Ermottis career is typical of
many European bankers: from
time at a major US investment
bank to a smaller second-tier
European player. In Ermottis case,
he joined Merrill Lynch in 1987
where he spent 16 years. He then
took a sabbatical, during which he
returned to his native Ticino and
took on the hotel mandate, before
joining UniCredit late in 2005.
Since taking over at UBS Ermotti
has moved away from a target of
SwF15bn (10.36bn)
profit. He has said
UBS plans to set a
return-on-equity
target at its
investor day
tomorrow.
Banks fate rests on
stylish Swiss Sergio
BY PETER EDWARDS
BANKING
SERGIO ERMOTTI
ANALYSIS l UBS AG
CHF
9Nov 10Nov 11 Nov 14Nov 15Nov
11.25
11.00
10.75
10.63
15 Nov
Credit Suisse Group AG will fully inte-
grate private bank Clariden Leu into
its organisation, ending the 250 year-
old Leu brand and cutting jobs to
achieve SwF200m (138m) in annual
cost savings.
Credit Suisse said the step was part
of plans announced earlier this
month to increase the contribution of
its private bank to group pretax
income by SwF800m by 2014.
The integration would mean a total
of 550 jobs will be lost.
Credit Suisse to
integrate Leu
BANKING
CITY investment bank Altium is to

close its securities division with the
loss of 30 jobs, it said yesterday.
Altium has started a 90-day consul-
tation but said the freeze in capital
markets left it unable to operate. The
closure will leave highly regarded
staff such as head of research Greg
Feehely facing an uncertain future.
The outlook remains bleak for
UK-centric brokers, it said. Altium
will instead focus on corporate
finance.
Altium closes
securities arm
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CITY VIEWS: NOW THE NEW YORK PROTESTERS ARE BEING EVICTED, IS IT TIME FOR
OCCUPYLSX TO MOVE ON? Interviews by Phoebe Torrance
Yes, I definitely think that
the protesters in London
need to be moved. It would
be a different story if they
had a real solution or agenda
but there is no time line
to see them go or
make any real
difference to
their cause.
DUNCAN MACKAY |
MARLIN HAWK
JAMIE WILSON |
DEUTSCHE BANK
NICHOLAS BURKELL |
IPS GROUP
* These views are those of the individuals above and not necessarily those of their company.
Personally they dont both-
er me as they don't cause
any havoc to my day-to-day
life. I think that because it
is peaceful protesting and
there has not been van-
dalism, I don't have a
problem with
them stay-
ing.
I think they should be
moved. I don't necessar-
ily agree or disagree
with what they are
protesting about but it
shouldn't involve
St Pauls
its nothing
to do with
their point.
GDP GROWTH across the Eurozone
slowed in the third quarter and
although France and Germany both
posted healthy figures yesterday, econ-
omists expect contraction to take hold
from the last three months of 2011.
The Eurozone grew by 0.2 per cent
over the three months to September,
which amounts to growth of 1.4 per
cent when compared with the same
period of 2010.
Portugal, Cyprus and the
Netherlands contracted in the third
quarter by 0.4 per cent, 0.7 per cent
and 0.3 per cent respectively. Spain,
and Belgium experienced no growth.
France and Germany experienced
healthy 0.4 per cent and 0.5 per cent
expansions though economists say
such growth will not last.
This could be the last bit of good
news for some time in the Eurozone,
said Lombard Street Researchs Jamie
Dannhauser.
The question is not whether the
Eurozone will be in recession next
year, but how deep that recession
turns out to be.
Such a gloomy outlook was backed
up by the German ZEW index of eco-
nomic expectations, which fell sharply
to minus 55.2 in November from
minus 48.3 in October, its ninth con-
secutive monthly decline.
The survey asks analysts how opti-
mistic they are about the economys
state in six months time, with its his-
torical average standing at 25.0 points.
OECD employment data added to
evidence that economic growth
peaked in the summer.
The unemployment rate crept up
from 10.1 per cent in August to 10.2
per cent in September, with Italy expe-
riencing the largest jump in jobless-
ness, rising from eight per cent to 8.3
per cent.
Growth spurt
ends as GDP
set to shrink
BY TIM WALLACE
EUROZONE
SINO-FOREST, the Chinese firm

accused of misleading investors,
claims an independent panel found
no evidence it was perpetrating a
massive investor fraud, but the
forestry companys chief accuser has
said the probe lacked credibility.
Sino said yesterday the panel, com-
missioned in June, found no basis for
a short-sellers allegations that the
company was operating a Ponzi
scheme.
But it conceded the committees
interim report left many of the ques-
tions raised by Carson Block and his
Muddy Waters firm unanswered.
We believe this release has no
credibility, Blocks firm said.
Sino-Forest, one of the most promi-
nent Chinese firms listed in North
America, saw its share price ham-
mered following Blocks allegations.
Sino-Forest hits back after panel
finds no evidence of mass fraud
INDUSTRY
German and French GDP growth is not set to last into next year Picture: REUTERS
EUROPEAN regulators have stepped
back from proposing controversial
reforms that would ban ratings
agencies from publishing views on
struggling sovereigns.
The European Commission (EC)
also shelved plans for a public EU rat-
ings agency on the grounds of cost,
saying it would require some 300-
500m (256-527m) to set up,
money not yet available from
Brussels ballooning budget.
But Commissioner Michel Barnier
promised yesterday that the delay is
only to give the EU more time to
flesh out the ratings ban idea.
And the EC pushed on with draft
rules that will shake up the ratings
industry by requiring companies to
rotate their use of agency every
three years.
The aim, according to the EC, is to
prevent the prevailing practice of
long-term relationships between
agencies and the firms they rate,
which regulators say creates a
familiarity threat that tempers
agencies willingness to downgrade.
Regulators also suggest that agen-
cies have a conflict of interest
because they are paid by the firms
they rate.
Agencies argue that the rotation
rule will force standardisation in the
industry as firms seek consistent rat-
ings of their credit-worthiness, and
will undermine investors ability to
judge agencies performance over
time.
A spokesman for Moodys said:
Forced rotation is an experiment
that will lead to a reduced offering
of opinions. It will remove incentives
to improve ratings quality and long
term performance.
The EC is also trying to find ways
to reduce the markets reliance on
ratings and proposed that investors
and banks should have to produce
their own internal ratings of invest-
ment products rather than
mechanically using those of the
three main agencies.
EU puts off
controversial
ratings ban
BY JULIET SAMUEL
REGULATION
News
8
SHARES in the London Stock
Exchange fell more than five per cent
in trading yesterday after Goldman
Sachs analysts cut it to a sell rating
over its exposure to Italy.
The LSE, which updates the market
on its trading today, owns Italian
clearing house CC&G and makes up to
38 per cent of its earnings from inter-
est generated by the trades it clears.
That could be under threat, analyst
Chris Turner warned, as the deterio-
rating Italian market causes the cost
of clearing trades to rise. This could
make it cheaper for Italys banks to
clear trades and loans through the
European Central Bank, leaving CC&G
unable to keep growing at the pace
seen over the past 15 months.
We do not see this elevated level of
interest income as sustainable and
reduce our net interest income fore-
casts, Turner said in a note.
Goldman warns LSE may
lose out on Italy income
LSE chief executive Xavier Rolet will update the market today
BY ALISON LOCK
CAPITAL MARKETS
THE EUROPEAN Parliament has passed

a law placing restrictions on short-sell-
ing and trading of instruments linked
to EU sovereign bonds, despite evi-
dence similar temporary bans have
had little effect on price performance.
The ban on naked trading of cred-
it default swaps (CDS) will prevent
investors from buying the instruments
if they dont own the bonds them-
selves. It will be left up to the
European Securities & Markets
Authority (ESMA) to work out how the
rules would work in practice if they
are also approved by the European
Council.
Europe to vote
on short-selling
EUROZONE
BANKS should be forced to allow cus-

tomers to switch accounts at the click
of a button, according to MPs collec-
tive the Free Enterprise Group.
The proposal to make banks share
IT systems is part of a raft of changes
the group says would empower con-
sumers and lead to greater competi-
tion in the banking sector. Other
measures suggested by the group
include breaking up RBS and demerg-
ing Lloyds and HBOS.
Banks should
allow switching
BANKING
CONTROVERSIAL Cable & Wireless

Worldwide (CWW) boss John Pluthero
sensationally quit the firm yesterday
as it slipped to an eye-watering
443m first half loss.
The sum equivalent to more than
half of CWWs market cap coupled
with the suspension of its dividend,
sent is shares crashing more than 26
per cent.
Writedowns totaling 624m acted
as a millstone around CWWs neck,
dragging it from a 53m pre-tax prof-
it last year far into the red.
Revenues for the half slipped 4.5
per cent to 1.07bn.
The loss capped a torrid year for
CWW. Pluthero returned to the helm,
following a spell as chairman, after
his predecessor Jim Marsh issued a
third profit warning since the
demerger from Cable & Wireless
Group last year.
The mammoth task ahead of CWW
was enough to convince Pluthero he
was no longer the man for the job,
with the avid modern art fan saying
the company needed continuity of
leadership to see out radical turn-
around plans over the next three to
five years.
He added he has no regrets over
taking a 10m bonus from a private-
equity style incentive plan in the
three years before the business
demerged.
Pluthero will be replaced by Gavin
Darby, a former Vodafone big-hitter
who faces the daunting challenge of
spinning the wheel at the Titanic.
Pluthero quits
as CWW falls
to huge loss
BY STEVE DINNEEN
TELECOMS
News
ANALYSIS l Cable and Wireless Worldwide PLC
p
35.00
30.00
37.50
32.50
25.00
27.50
22.50
22.31
15 Nov
THE ART LOVERS RISE AND FALL
SINCE first coming to the Citys attention
as an ambitious executive at Dixons Group
during the dotcom boom, abstract art con-
noisseur John Pluthero has remained at the
top of some of the UKs biggest telecoms
companies for the past two decades. We
take a look at the bumpy route that led to
his departure from CWW.
1990s - After training as an accountant,
Pluthero spent time at P&O and Holiday Inn
Worldwide before joining Dixons, where he
rose through the ranks to become managing
director of Mastercare at the company
1999- Founded Freeserve, a free internet
service provider launched by Dixons. As chief
executive, Pluthero took Freeserve public in
the summer of 1999 in Britains first signifi-
cant dotcom start-up float
2000- Freeserve briefly joins the FTSE100,
but after its shares drop from a 921p high in
February to 166p by September it is bought
by Wanadoo and merged into the group.
July 2002 - Becomes chief executive of
struggling telecoms company Energis a week
after joining as chairman. Pluthero was bought
in as part of a rescue bid after Energis was de-
listed and bought out by its bankers.
August 2005 - Cable & Wireless bids 594m
for Energis. Pluthero becomes chief executive of
C&Ws UK operations after incumbent CEO
Francesco Caio is pushed out
November 2009- As C&W announces plans
to demerge its business groups, details of the
firms long-term incentive plan emerge, under
which Pluthero received a 10.2m bonus.
26 March 2010 - The demerger goes through
splitting the company into Cable & Wireless
Comms and Cable & Wireless Worldwide, of
which Pluthero becomes chairman.
June 2011 - Pluthero is reappointed to the
chief executive role after the departure of John
Marsh, who had delivered three profit warnings
in just over a year.
15 November 2011 - Pluthero steps down as
CWW reports a half-year loss of 443m. Shares
lose more of a quarter of their value in one day,
having fallen from 69p at the start of the year
to 22p at yesterdays close.
Elizabeth Fournier
As well as roles as a director of Merville Limited
and chairman of Essensys, John Pluthero is also an
enthusiastic collector of abstract art. Last year he
founded AbstractCritical, an online forum that
organises exhibitions and discussions around the
subject. Background: Baroquey, 2009 - Anne Smart
AN INVESTMENT banker yesterday
said he had raised concerns about
dubious accounting at Olympus in
the 1990s, after he discovered it was
using Bermuda-based funds to
invent assets and patch up its bal-
ance sheet.
The bankers concerns, which he
says were discussed inside Wall Street
bank PaineWebber, his employer at
the time and the arranger of
Bermuda schemes for Olympus, is
one of the earliest red flags known to
have been raised over the Japanese
firms accounting irregularities,
which continued for 20 years.
He said the Bermuda investments
had been arranged for Olympus by
two Japanese bankers then working
for PaineWebber.
UBS, which bought PaineWebber in
2000, said it had no knowledge of any
Olympus fund investments brokered
by PaineWebber before the deal.
Yesterday Koji Miyata, the former
Olympus executive leading attempts
to bring back chief executive Michael
Woodford, told City A.M. the campaign
website had attracted 1.2m hits on
Sunday, its first full day.
Creditors of Olympus are due to
meet executives today but are not
expected to demand changes in loan
terms. Major creditors have said they
are shocked by the scandal.
Olympus sums
were queried in
1990s - banker
TECHNOLOGY
PROPERTY developer British Land has

formally signed a pre-let agreement
with insurance broker Aon to lease a
third of its Leadenhall building, nick-
named the Cheesegrater, in the City.
Aon will take 191,000 square feet
over 10 floors of the 47-floor sky-
scraper due to be completed mid-
2014 paying on average 56.60 per
square foot for 19 years.
The signing, which has been
expected since May, came as British
Land posted a rise in first-half net
asset value (NAV) to 591p a share,
from 567p in March, while its under-
lying pre-tax profit rose 3.9 per cent
at 132m.
The blue-chip developers total
portfolio value was up 2.2 per cent at
the half-year mark to 10.2bn, boost-
ed by a 5.3 per cent increase in the
value of its office space, while its
retail estate rose 0.7 per cent.
Chief executive Chris Grigg said:
Against the background of slowing
economic growth and renewed con-
cern about the Eurozone, our results
demonstrate that British Land is high-
ly defensive and well positioned in
the near term.
Despite worries around the sector,
Grigg pointed out that level of occu-
pancy across the companys retail
and office portfolio remains above 98
per cent.
He stressed that demand for prime
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British Land signs first tenant for
Cheesegrater as profits increase
BY KASMIRA JEFFORD
PROPERTY
News
British Lands under-construction
Cheesegrater has found its first tenant
ANALYSIS l British Land Co PLC
p
515
510
505
500
495
490
497.40
15 Nov
office space remained resilient,
adding that office development
across London would be lower than
previously thought, with a shortage
of new space between 2013 and 2015
when many leases come up for renew-
al.
Were under no pressure to pre-let
now. Theres a shortage of grade A
space. The City has proved to be
remarkably resilient over the course
of the past decade, he said.
But analysts criticised the lack of
dividend growth, which remained
flat at 6.5p for the second quarter.
Shares fell 1.2 per cent, closing at
497.4p last night.
LONDONS super prime residential
developments are expected to achieve
record values of 10,000 per square
foot as the capital continues to attract
wealthy international investors,
research from Knight Frank shows.
Demand for luxury apartments and
houses in Londons golden postcodes
like Mayfair and Knightsbridge
boomed earlier this century, with mar-
ket values escalating from 1,000 per
square foot in 2000 to 3,000 per
square foot in 2006.
In a report out yesterday, Knight
Frank predicted prices could rise as
high as 10,000 per square foot by 2016
after recent buyers spent over 7,500
per square foot on One Hyde Parks
luxury apartments the highest price
for any residential property world-
wide.
The development by billionaire
Christian Candys CPC Group and
backed by the Qatari Prime Minister
has sold 62 of the 80 apartments for a
total of 1.4bn.
Knight Franks report, which
analysed One Hyde Parks impact on
the super-prime London residential
market, says that there is unlikely to
be a similar development for some
time due to the lack of suitable sites
and the difficulties in getting finance.
Liam Bailey, head of residential
research, said: In key markets like
London the availability of top-end
developments that attract wealthy
international purchasers is still very
limited. The opportunity for develop-
ers to capitalise on this market is
therefore a real option.
Other centres like New York,
Singapore, and Hong Kong have also
been catering for the worlds wealthy
but London remains the bench-mark
for super-prime property, Knight
Frank said.
Property group Savills estimates
that overseas buyers spent around
6bn in the past 18 months as London
continues to be seen as a safe-haven.
Super prime
property set
to hit records
DELLS quarterly revenue just missed
Wall Street estimates last night, and
the worlds third-biggest personal
computer maker warned that full-
year revenue could be hurt by an
industry-wide shortage of hard drives.
Net earnings rose to $893m
(564.7m), from $822m this time last
year.
During the third quarter, desktop
PC revenues slid six per cent to $3.4bn
as Dells sales to consumers fell six
per cent.
Gross margins slipped to 23.1 per
cent from 23.2 per cent in the prior
quarter, but rose from 20 per cent a
year earlier.
Investors fear a slowdown in PC
manufacturing late this year and in
2012 after flooding in Thailand
severely disrupted production of hard
drives, a key component in comput-
ers.
To the that extent we see higher
[drive] prices well also see some off-
sets in other components and we're
going to do everything we can to pro-
tect our customers. But maybe in
some cases we do have to raise our
prices, said chief financial officer
Brian Gladden said following the
results.
Shares in Dell slid two per cent to
$15.32 in after-hours trading.
Dell warns of
a global hard
drive shortage
BY KASMIRA JEFFORD
PROPERTY
TECHNOLOGY
News
CITYA.M. 16 NOVEMBER 2011 13
London's super-prime residential developments
DE VERE GARDENS SCHEME
Lancer Asset Management
To be completed in 2014
Targeting prices of:
4,000+/sq ft
THE KNIGHTSBRIDGE
The first of the super prime
developments in London
Achieved prices of:
4,000+/sq ft
ONE HYDE PARK
Candy & Candy
Price achieved:
7,500/sq ft
BURBERRYs chief executive Angela
Ahrendts said demand across flag-
ship stores in cities such as New
York and Hong Kong was helping
the group to defy the downturn, as
the fashion house reported strong
first half results.
The 155-year-old British brand,
known for its signature raincoats,
made 60 per cent of retail revenue
in 25 cities that are home to the
worlds wealthiest individuals.
Ahrendts said that while these
cities were not immune from global
volatility, places such as Hong Kong,
Paris and Dubai were cushioned
by their high population density
and a reliable influx of high-spend-
ing tourists.
Burberry has seen its shares fall
by 30 per cent since hitting a high of
16 in July amid fears over the
groups exposure to the slowdown
in the Chinese economy.
Shrugging off these concerns,
Ahrendts said: China is only about
10 per cent of the global revenue we
reported, so its a strong market but
its not a market Burberry is overly
dependent on.
The group posted a 26 per cent
rise in profit before tax and excep-
tional items, to 162m, beating ana-
lyst forecasts of 160m. Net profit
rose to 117.2m from 83.1m.
Burberry plans to increase retail
space by 15 per cent in the second
half, in new markets like Latin
America.
Despite its upbeat results, shares
in Burberry closed down 5.2 per
cent 13.47 last night.
Profits rise
as Burberry
stays upbeat
BY KASMIRA JEFFORD
RETAIL
SWEDISH fashion group Hennes &

Mauritz yesterday posted a second
straight monthly fall in sales at estab-
lished stores in October as the debt
crisis in the Eurozone pushed con-
sumer sentiment even lower.
H&M said same-store sales in
October fell two per cent. Total
turnover for H&M, including newly
opened stores, rose eight per cent in
local currencies, beating expecta-
tions for a 6.3 per cent rise.
Meanwhile, the fashion retailer
said it would be interested in a collab-
oration with designer Tom Ford fol-
lowing a similar deal with Versace.
H&M in same
store sales dip
RETAIL
News
CEO Angela Ahrendts said Burberry had balanced growth across all regions. Picture: REX
Chin up: four reasons to be cheerful
LIKE everyone else, we cant help but
feel depressed at the torrent of bad
news that each new day brings.
Crisis in the Eurozone; nightmare
on the high street; jobs bloodbath in
the City the bad headlines never
end. So we thought wed reflect on
some of the more positive pieces of
news, which can easily slip through
the cracks.
First, the UK is not Greece,
Portugal, Italy or Spain. Investors
actually want to buy our bonds.
Yesterday, the yield on UK 10-year
gilts fell as far as 2.11 per cent,
touching record lows. This is in large
part due to a bubble in bonds and
the fact that the Bank of England
keeps prices low through quantita-
tive easing, but were trying to focus
on the good news here.
Second, were not in the
Eurozone, even if were feeling the
chilling effects of its debt crisis. Its a
bit like bearing witness to a particu-
larly horrific car crash; a distressing
experience for sure, and one that
could leave permanent scars but it
would be so much worse if you were
actually in one of the vehicles.
Third, like most of our readers, we
live in London and the surrounding
areas. At the risk of sounding like
Silvio Berlusconi, our restaurants
are full and our high streets are still
populated. For the most part, house
prices in the capital are holding up.
Compared to other cities, weve been
lucky.
Fourth, rich foreigners want to
live and spend their money here, as
our story about prime London prop-
erty shows on page 13. Even those
that dont want to buy our luxury
goods (see right).
So there you have it, four by no
means exhaustive reasons to be
optimistic. Clichd as it sounds,
things could be much, much worse.
david.crow@cityam.com
BOTTOMLINE
Analysis by David Crow
DEBENHAMS, Britains second-biggest
department store chain, has ratch-
eted up the pressure on rivals, launch-
ing its annual five day pre-Christmas
promotion with what it claims are its
deepest ever discounts.
The firm said yesterday it will cut
the prices of tens of thousands of
items in its 164 UK stores and online
by up to 40 per cent, equating to
200m.
The so-called Christmas spectacular
event, part of Debenhams promo-
tional calendar every year, will run
from Wednesday to Sunday with
extended store opening hours.
Deep price cuts
at Debenhams
RETAIL
ANALYSIS l Burberry Group PLC

p
1,400
1,360
1,420
1,380
1,340
1,347.00
15 Nov
Terms apply. Subject to credit check. BlackBerry
, RIM
, Research In Motion
and related
trademarks, names and logos are the property of Research In Motion Limited and are
registered and/or used in the U.S. and countries around the world.
Free Bold
9900
The best BlackBerry
ever made
Call 08080 99 00 00
before 4pm for next day phone delivery
Visit vodafone.co.uk/bold or go
to your local Vodafone store
Lines open 7 days a week, 8am-8pm, except bank holidays. Call us free on your
landline; standard network charges apply to all calls made froma mobile phone.
With a
massive
1000 mins
FREE BlackBerry
Bold 9900
Hi-res touchscreen and QWERTY keyboard for accurate typing
High performance 1.2GHz processor
Price on a 24-month contract
Mins to all UK mobiles & UK landlines
(starting 01, 02, 03)
Standard UK texts
UK mobile internet
Wi-Fi access with BT OpenZone within UK
39
1000 minutes
Unlimited texts
750MB
1GB
BlackBerry
Bold 9900
a month
Call us today to find out more about our new
3 month Data Test Drive offer
News
MORE NEWS
ONLINE
@
www.cityam.com
We shouldnt write off traditional media yet
L
AST week I had the pleasure of
two days of pure blue skies at the
Monaco Media Forum. As you
hope and expect at these gather-
ings, there was also a confusing bar-
rage of blue-sky thinking. One speaker
was working on a project to develop
the 3D printer concept by investigat-
ing the practicality of printing a warm
gourmet meal. Maybe that is little way
off; most of the presentations focused
on whizzier ways to advertise using
micro-targeting and social media.
At the gala dinner, I sat next to a sea-
soned New York ad exec who might
have walked straight off the set of Mad
Men. He warned me against over-
enthusiasm on the futurology front,
caustically remarking: You see these
great claims for the future but right
now were not even using a fraction of
the technology they already have.
It turns out all that much-vaunted
clever tracking and precision-place-
ment of personally relevant ads hardly
ever really happens maybe three per
cent of banner ads are truly targeted,
he said. And one of the presidents of
Warner Brothers reminded us that if
Netflix were in a league table of net-
works, it would come 81st. Even
YouTube would struggle to be in the
top-ten for shares of eye-balls.
Looking at those two brands in
YouGovs BrandIndex, YouTube cer-
tainly performs well, scoring around
+40 on the Index score (a composite of
six key measures) but still trails the
BBC, which at around +50 is consis-
tently one of the strongest performing
of the 850 or so brands measured.
Netflix has barely registered in the UK,
but its well-publicised troubles in the
US saw its Index score fall from a high
of +41 this summer to +12 today.
Although new media has made
great strides we would be foolish to
write off the role of more traditional
forms just yet.
Stephan Shakespeare is the chief executive of
YouGov
ANALYSIS l YouTube BrandIndex
01/04/2011 01/06/11 01/08/11 01/10/11
60.0
50.0
40.0
30.0
20.0
10.0
0.0
BBC
YouTube
ANALYSIS l Netflix BrandIndex
01/04/2011 01/06/11 01/08/11 01/10/11
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
-5.0
Netflix US
Netflix UK
0.0
BRANDINDEX
STEPHAN SHAKESPEARE
How are MPs coping with the economy?
This week we are asking members of
our Voice of the City poll, run with
PoliticsHome, how they think UK
politicians are dealing with the rocky
economy.
When do you think the British econo-
my will return to strong growth, and
what state will it be in by the time of
the 2015 parliamentary elections?
To join, please visit cityam.com/panel
PoliticsHome.com PoliticsHome.com
In partnership
with
Apply to join today at www.cityam.com/panel
In association with PoliticsHome.com
THE PANEL of top European
economists who will judge
the 250,000 Wolfson Prize
entries was unveiled today.
The prize, sponsored by
Next chief executive Lord
Simon Wolfson (pictured,
right), will award a quarter of
a million pounds to the econo-
mist who offers the best feasible
plan that a country could
follow if it wanted to
leave the Eurozone.
Announced last
month, the prize has
already received more
than 600 expressions
of interest from
universities, ex-
governmental
advisers and eco-
nomic institu-
tions.
Tony Blairs former economic advis-
er Derek Scott chairs the judging
panel.
The Eurozone crisis is the biggest
threat to global economic stability
since the Second World War, he
said.
European leaders may now be
coming to appreciate the scale of
the Eurozone crisis, but this prize
is a private sector initiative to
reinforce the response of policy
makers in the decisions
that will have to be
made to get Europe
out of the mess.
W o l f s o n
explained that the
scale of the
Eurozone crisis
meant a major pri-
vate sector incentive
was needed to attract
the highest calibre of
economists to tackle
the question.
Panel named
for 250,000
Wolfson prize
News
MORE NEWS
ONLINE
@
www.cityam.com
BY TIM WALLACE
EUROZONE
An adviser to Tony Blair from 1997 to

2003, Scott is now a visiting professor at
Cass Business School, an economic advis-
er to Vestra Wealth and author of Off
Whitehall, on the economics of EMU.
DEREK SCOTT | VESTRA WEALTH
Rosa is an economist and professor at
Sciences Po in Paris. A former member of
then-French PM Lionel Jospins economic
council in the 1990s, he is now a member
of the America Economic Association.
JEAN JACQUES ROSA |SCIENCES PO
Professor Neumann works at both the
Deutsche Bundesbank and the University
of Bonn. He co-founded the international
Konstanz Seminar on Monetary Theory
and Monetary Policy.
MANFRED NEUMANN | UNI OF BONN
Goodhart is the emeritus professor of
banking and finance with the financial
markets group at the London School of
Economics. From 1997 to 2000 he was a
member of the Bank of Englands MPC.
CHARLES GOODHART | LSE
Professor of economics at Bocconi
University in Milan, Giavazzi was a mem-
ber of the group of economic advisers to
the President of the European
Commission from 2000 to 2010.
FRANCESCO GIAVAZZI|UNI BOCCONI
News
SUPERMARKET group Asda yesterday
reported a pick up in third-quarter
sales growth, helped by revamped
own-brand food ranges and a pledge to
be cheaper than rivals.
Sales at stores open more than a
year rose 1.3 per cent, excluding fuel
and VAT sales tax, in the three months
to September, Britains second-biggest
supermarket group said yesterday.
That followed 0.5 per cent growth in
the second quarter and 0.1 per cent in
the first.
But customer traffic fell 1.3 per cent
and the average transaction rose 2.6
per cent in value in the third quarter,
as cash-strapped shoppers made fewer
trips in the face of high fuel prices, it
said.
The cost of petrol and household
utilities will continue to be the biggest
contributors to the squeeze on person-
al disposal incomes, said Helen
Sales are strong at Asda but high
fuel costs keeping shoppers away
BY HARRY BANKS
RETAIL
WAL-MARTS decision to absorb ris-

ing food costs for its stressed US shop-
pers has weighed on profitability, the
firm admitted yesterday, even as key
US sales rose for the first time in
more than two years.
Wal-Mart, the US grocery giant
that owns Asda, said sales at stores
open more than a year rose a higher-
than-expected 1.3 per cent in the
three months to the end of October,
ending a string of nine straight quar-
terly declines.
But visits to stores were once again
down from a year earlier, even as
shoppers spent more per visit.
Wal-Mart US held off on raising
prices as much as it could to appeal
to cost-conscious shoppers.
The group earned $3.34bn (2.1bn)
from continuing operations in the
third quarter, slightly shy of fore-
casts, and compared with $3.44bn a
year earlier when a tax benefit lifted
earnings.
Net sales rose by 8.2 per cent to
$109.5bn.
Wal-Marts plan
to absorb food
prices hits gains
RETAIL
Dickinson, head of retail at KPMG.

This squeeze will continue to affect
retail spending which has remained
largely subdued even as we enter the
peak trading period of the year,
Christmas.
Asda, which trades from 542 stores,
lagged Britains grocery market for
most of 2010, but has fought back this
year, helped by its purchase of smaller
format Netto stores and a relaunch of
its own-brand food range.
The chain, which completes the con-
version of former Netto stores next
week, said it was benefiting from a
price guarantee that offers to refund
customers the difference if an online
price comparison website does not
show their shopping was at least 10
per cent cheaper than at a rival.
Asda said over 13m baskets have
been checked online this year.
With the grocery market entering
what is traditionally a heavily promo-
tional Christmas period, data from
market researcher Kantar Worldpanel
last week showed Asda growing faster
than the overall grocery market for
the first time since early 2010.
Asda reported sales growth Picture: REX
KINGFISHER Airlines chairman Vijay
Mallya yesterday sought to ease con-
cerns about the future of his airline,
but offered few measures for reviv-
ing the Indian carriers finances after
its quarterly loss doubled.
Mallya, who owns a liquor busi-
ness and the Force India Formula
One team, said Kingfisher had not
asked banks to take a haircut but
was looking for ways to cut the inter-
est cost on its $1.3bn (800m) debt.
He called on New Delhi to allow
foreign airlines to buy stakes in
Indian carriers and said Kingfisher
had applied to directly import fuel.
BUDGET airline EasyJet confirmed its
first ever dividend payout yesterday, as
it revealed a 31.5 per cent surge in
annual pre-tax profits to 248m on the
back of a rising number of lucrative
business passengers on its flights.
EasyJet, whose biggest shareholder
Sir Stelios Haji-Ioannou has long
pushed for a dividend, will dole out
195m to its shareholders, but
warned the payment might be a one-
off if the firms financial position
worsens next year.
Stelios himself will pocket 51m
from the dividend, on top of more
than 4m a year from a deal to
licence the easy brand name.
But sources close to him said he
was still worried about capital expen-
diture, and could still exert pressure.
Chief executive Carolyn McCall
tried to play down the dispute with
the firms founder, telling reporters:
The EasyJet team... are ruthlessly
focused on what we do to deliver. We
would obviously listen to our largest
shareholder and we would like to do
that in private.
The firms revenues rose 16.1 per
cent to 3.45bn in the year to the end
of September, while ancillary rev-
enues jumped 12.9 per cent to 11.52
per seat.
The firm said this was partly due to
its campaign to attract more business
customers, leading to 1m more peo-
ple using EasyJet flights for business
and taking the total to 9.5m for the
year.
The company also said it was tri-
alling allocated seating on some
routes early next year, in response to
demand.
The firm expects mid-single-digit
revenue growth in the next half on a
conservative and cautious outlook.
EasyJet shares rose yesterday morn-
ing but closed down 2.3 per cent.
First dividend
for EasyJet
as profits rise
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Losses double
at Kingfisher
BY MARION DAKERS
TRANSPORT
TRANSPORT
Chief executive Carolyn McCall Picture: Micha Theiner/ CITY A.M.

News
ANALYST VIEWS: CAN EASYJET MAINTAIN ITS UPWARD MOMENTUM?
By John Dunne
PETER HYDE |
LIBERUM CAPITAL
The Stelios situation should begin
to ease. EasyJet has reduced expansion,
introduced royalty and dividend payments
and announced a return of capital. We see
Stelios demands as good financial disci-
pline. We see a positive revenue outlook for
the next half.
KEITH BOWMAN | HARGREAVES LANSDOWN

On the downside, the groups dispute with its founder provides an unwanted distraction, while uncertainty
cloaking the economic outlook hinders both it and the broader stockmarket. However, with shareholder returns growing
and the valuation still seen as attractive, market consensus opinion currently denotes a buy.
GERT ZONNEVELD |
PANMURE GORDON
Forward bookings indicate a mid-
single digit increase in seat revenue, but we
are doubtful whether revenue increases can
fully offset anticipated cost increases in the
current year. But based on earnings fore-
casts we retain our buy recommendation
and 450p target price.
ANALYSIS l Easyjet PLC

p
365
355
370
360
345
350
340
356.40
15 Nov
QATAR Airways placed a $6.5bn
(4.1bn) order for Airbus jets yester-
day, just hours after saying at the
Dubai Air Show it had walked away
from the deal.
The carrier has penned a deal for
50 of the new Airbus A320neo
planes, with a further 30 on option,
and up to eight more A380s.
But Qatar chief Akbar Al Baker
had said earlier: Airbus is still
learning how to make airplanes. We
have cancelled the [A320]
announcement. There is an
impasse. If this is resolved, fine ... If
not then bye-bye.
Qatar inks 4bn
Airbus contract
TRANSPORT
that made him a household name

beyond the Made In Chelsea
Christmas special, obviously. I need
to get on with my projects, he told
The Capitalist. But I wont rule it out.
UNICREDIT RATING
A DOWNBEAT assessment of Unicredit
from Morgan Stanley and Citi yester-
day, with one bearish Citi analyst not-
ing: We believe asset quality remains
the main area of concern and execu-
tion risk remains high.
Near-term, the stock may come
under technical pressure, agreed
Morgan Stanley, downgrading its
2012/13 forecasts by ten per cent and
slashing its price target 14 per cent.
Neither analysts view is particular-
ly helpful to Unicredits forthcoming
6.4bn rights issue, as announced to
great fanfare on Monday. But then
that wont bother Citi or Morgan
Stanley, since neither has been asked
to advise on the lucrative deal.
SAVE OUR SOULS
DESPERATE times call for desperate
measures. And things have become so
bad in the City that bankers are this
morning being prayed for at St
Helens Bishopsgate.
Well spend the largest part of our
time in prayer for the City, in particu-
lar for the professions represented in
the West End, the organisers of the
City Prayer Breakfast told The Capitalist.
Could they possibly mean the likes of
Mayfair hedge funds Lansdowne
Partners and Odeys, in the news
recently for all the wrong reasons?
Best to ask prayer leader Michael
Farmer (below), the RK Capital
Management boss known as Mr
Copper after he turned MG Metals
into the worlds largest copper trader.
Let light shine out of darkness,
was the committed Christians mes-
sage of hope from 2 Corinthians 4:6,
proving that yes, it is possible to wor-
ship both God and Mammon.
COST-CUTTER
SOME number crunch-
ing: 2.8 million the
amount vulnerable peo-
ples charity Norwood
raised at its annual dinner
attended by London Mayor
Boris Johnson, Topshop
mogul Sir Philip Green,
Deloittes insolvency head
Neville Kahn and Shard devel-
oper Irvine Sellar.
Three million: the
amount the Richard
Desmond-backed chari-
ty is attempting to save
each year, after imple-
menting cost-cutting measures in
response to hearing it will lose 4m in
annual funding by 2015 due to local
authority spending cuts.
Our challenges at this time are
great and the needs of our communi-
ty are growing, said Norwoods new
CEO Elaine Kerr. We are only going
to be limited by our drive, ideas and
available funding. Its only the latter
that we dont have in abundance.
MAN OF LEISURE
HES BACK: Philip Sandzer, the prop-
erty industry veteran who founded
the leisure agency Shelley Sandzer in
the 1980s before disappearing over-
seas to do charity work.
Seven years after selling his leisure-
focused firm, Sandzer has made a
full-time return to commercial
property as head of a new retail and
leisure division at DeVono.
He wont represent landlords,
though, only tenants, under the firms
no conflict model and Topps Tiles,
Ping Pong and Corney & Barrow are
already knocking on the door.
PRIZE DRAWING
AS CHIEF executive of motor repairer
Nationwide Accident Repair Services,
Michael Wilmshurst sees his fair share
of painting car bonnets, that is.
But what Wilmshurst lacks in artis-
tic talent is more than made up for by
his creatively named son, Lewk,
who has been named as a final-
ist in this years Saatchi Online
Showdown, the competition
launched by advertising
guru and art collector
Charles Saatchi as a platform
for emerging artists.
The artwork that won the
day is the intricate drawing
Morphogenesis//a grain
of sand to glass,
which will hang
in the Saatchi
Gallery along-
side the
other win-
ners.
MADE IN CHELSEA DIAMOND HEIR
DIGS DEEP FOR HIS NEXT VENTURE
HIS FAMILY made their fortune dig-
ging for diamonds in the Congo and
Sierra Leone, but Made in Chelsea
stalwart Francis Boulle is interested
in mines of a different kind.
Fundmine, to be precise, an online
investment platform that allows
entrepreneurs to sell their company
visions to private investors that has to
date attracted 8.7m of backing.
Boulle, the son of privacy-con-
scious diamond tycoon Max Boulle,
who was last seen running an
unbranded banking and mining
investment firm in the tropics, is
launching the site on 1 December
in partnership with private art
dealer Jacob Harmer.
Word of mouth has taken the
well-connected pair so far, but
Fundmine conceived as a response
to the lack of government money
available to SMEs is now offering
entrepreneurs a free proposal to be
included on the platform on launch,
adding to the 100 media, telecoms,
property and, naturally, mining busi-
nesses already on board.
Serious investment proposals only
though, says the man who brought
sexymp.co.uk to the nation, adding
that he is now too busy to commit
to another series of the reality show
Mining heir Francis Boulle is seeking investors for his latest venture Fundmine
Norwood president Richard Desmond and
host Boris Johnson, Mayor of London
The Capitalist
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
WWW.SGMARKETMASTER.CO.UK
7
th
NOVEMBER 5
th
DECEMBER 2011
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ROMAN Abramovichs steelmaking
group Evraz surprised markets with a
cautious update yesterday that said
pressure on prices would lower profits
in the last months of the year.
Evraz said revenues hit $12.5bn
(7.8bn) in the first nine months of
the year, up 28.9 per cent from the
same period in 2010, including $4.2bn
of sales in the third quarter.
But it warned the downturn in the
global economy was pushing its prices
down and worsening a seasonal shift
in its sales towards cheaper and lower-
margin part-finished steel goods.
The seasonal change in the prod-
uct mix...coupled with slightly lower
prices for the main product groups
due to the volatile global economic
environment, is impacting Evrazs
performance in the fourth quarter, it
said in a statement.
The news sent Evraz shares down
five per cent in morning trading but
they closed just 0.5 per cent down.
The news could disappoint Evrazs
investors, who bought into its flota-
tion ahead of its planned entry into
the FTSE 100 index, on hopes of surg-
ing growth in the industry.
Evrazs earnings before interest,
tax, depreciation and amortisation
(ebitda) for the nine months jumped
almost 36 per cent to $2.4bn.
Evraz warns
on the cost of
world turmoil
BY ALISON LOCK
CAPITAL MARKETS
BG GROUP yesterday fired the starting

gun on the race to succeed chief execu-
tive Sir Frank Chapman, naming the
three executives who the firm is con-
sidering for the top job.
Chapman, who has helped build BG
from a UK-focused player into a $74bn
(46.6bn) international oil and gas
giant, will step down before the end of
2013, the group said.
Chris Finlayson, managing director
for Europe and central Asia, chief
financial officer Fabio Barbosa and
Martin Houston, managing director
for the Americas and head of liquefied
natural gas, will be given additional
duties to test their suitability for the
top role, a BG spokesman said.
We have identified three internal
candidates... This is all part of an order-
ly succession plan, he said.
Finlayson will take over BG
Advance, the unit responsible for BGs
exploration strategy, capital projects
and IT & technology capability.
Barbosa, who replaced the man who
was previously seen as Chapmans like-
ly successor, Ashley Almanza, less than
a year ago, will also work on strategy
and portfolio development.
Martin Houston will become chief
operating officer in addition to his
existing roles.
BG Group says three execs
to fight it out for the top job
BY JOHN DUNNE
ENERGY
News
Martin Houston (top) Chris Finlayson (left) and Fabio Barbosa are in the running at BG
NEWS | IN BRIEF
Premier shifts focus to North Sea
British oil firm Premier Oil said its focus for
activity was shifting back to the North Sea
as it reiterated its production target after a
strong performance from its Asian gas and
oil fields. Premier, which also owns assets
in Pakistan and Kenya, said it was on track
to exit the year with production of around
60,000 barrels of oil equivalent per day
(boepd) from a current level of between
50,000 and 55,000 boepd as output
comes onstream in Vietnam and Indonesia.
SeaFrance suspends services
Channel ferry company SeaFrance yester-
day cancelled all its Dover to Calais servic-
es ahead of a court hearing today to
determine its future. SeaFrance said the 48
hour suspension had been agreed with
French national authorities to safeguard
the security of the passengers, crews, vehi-
cles and ships while a make-or-break
court hearing decides whether to sell the
firm to one of two interested parties or
declare the company is no longer viable.
TalkTalk loses market share
TalkTalk has succumbed to intense pres-
sure from BT and Sky in the broadband
market in recent months, shedding a net
70,000 customers. Revenues for the first
six months fell 4.8 per cent to 844m but
profits surged 36 per cent to 68m. Its net
debt remained broadly flat at 475m.
ANALYSIS l Evraz
p
400
390
380
370
360
350
340
389.00
15 Nov
What youll receive as a Centrepoint
room sponsor
A viituul iecieuticn c ycui iccm cnline thut ycu
cun lcg intc using peiscnul lcgin detuils.
A plun c ycui iccm und incimuticn uhcut the
ycung peiscn stuying in it, thicugh the pcst.
Regului updutes uhcut hcv the ycung peiscn's
lie is chunging.
lncimuticn uhcut the nev peiscn mcving in,
vhen the ycung peiscn cuiiently cccupying ycui
iccm mcves cn.
l ycu'd like tc spcnsci mcie thun cne iccm,
pleuse dc. The mcie iccms ycu spcnsci, the mcie
ycung lives ycu'll chunge.
DID YOU SEE JOHN?
Like muny c the hcmeless ycung pecple vhc ccme tc
Centiepcint, 1chn is nc stiungei tc heing igncied. Vhen
he vus }ust cui his uthei vulked cut und the uttenticn
he gct icm his mum vus ui icm hugs und kisses.
When I was ve, Mum kicked me hard in the stomach.
She was always shouting and would become violent
over something silly like not nding her cigarettes.
His mum then muiiied u mun vhc ulsc mude 1chn eel
scuied und vcithless. She ccntinued tc shcv him nc
uecticn, hut hecume munipulutive und }eulcus i cthei
ielutives ci iiends did. And sc she dicve uvuy the
cnly lcve und cuie thut 1chn evei knev.
Id developed a nervous tick, but mum threatened
to hurt me if I let anything showIt was too much to
handle, too much commotion.
At 15 1chn stuited sleeping dcvn hy the cunul und in
u deielict high iise ut. Lcnely und teiiied, he tuined
tc diink, sel-huiming und even hecume suicidul. Vhen
he nully ended up in hcspitul, his mcthei's iespcnse
vus tc y c cn hcliduy. He'd nevei elt sc ie}ected.
Vhile 1chn's stciy muy scund shccking tc ycu,
muny c the hcmeless ycung pecple vhc ccme tc
Centiepcint huve heen thicugh similui expeiiences.
They nd themselves hcmeless utei heing victims c
neglect, viclence, sexuul uhuse und umily hieukdcvn.
Once cn the stieet, they immediutely uce nev dungeis.
lt cun tuke }ust hcuis ci them tc he uppicuched hy
diug deuleis und pimps.
By sponsoring a room at Centrepoint for
just 40p day (12 a month) you could give
a vulnerable homeless young person like
John a safe place to stay right now.
The Centiepcint iccm spcnsciship scheme ceis
hcmeless ycung pecple like 1chn u secuie iccm c
theii cvn ci up tc tvc yeuis - encugh time tc tuin
theii lives uicund und tuin theii huck cn hcmelessness
ci gccd.
1ust think vhut it vill he like ci scmecne like 1chn
vhen they cpen the dcci c the iccm ycu spcnsci, ci
the veiy ist time.
Ycui iccm vill ccntuin u vuim, sct hed vheie they'll
he uhle tc sleep scundly, utei night utei night c
eeling scuied in un emeigency hed & hieukust ci cn
the stieets. A shcvei vheie they'll he uhle tc stund
undei steuming hct, scupy vutei, utei duy utei duy c
tiudging uicund in clcthes thut nevei eel cleun. And
u kitchenette vheie they'll he uhle tc ccck nutiiticus
meuls thut vill iestcie them huck tc heulth.
Call 0800 13 80 473 or visit
www.centrepointroom.org.uk/cityam01
Vhile stuying in ycui iccm, the ycung peiscn ycu'ie
helping vill ieceive ull the suppcit they need tc iehuild
theii lie. Ccunselling tc deul vith theii pichlems,
cuieei udvice tc help them intc ccllege ci u }ch, und
husic lie skills, such us hcv tc ccck, hudget und puy
hills. Sc, vhen they leuve Centiepcint, they uie ieudy
tc live independently. Vhen thut time ccmes, they'll
ccntinue tc ieceive suppcit ci us lcng us they need it.
Tcduy, ycu cun give u hcmeless ycung peiscn, vhc is
heing igncied iight ncv, the chunce c u nev lie. All
it vill ccst ycu is 4up u duy. Becuuse scmecne like ycu
iespcnded tc un udveitisement like this u ev mcnths
ugc, 1chn is ncv sue ut Centiepcint iuthei thun
hcmeless und living in eui.
So many people dont give homeless young people
like John a second glance. But today you can be
the person who chooses not to ignore them.
Sponsor a room at Centrepoint by
calling 0800 13 80 473, visiting
www.centrepointroom.org.uk/cityam01
or returning the form below.
Have a look at page 17. Did you see him? Or did you look past him and carry on with your life?
Sponsor a
room just
40p a day
Tc pictect the piivucy c thcse ve help, u mcdel hus heen used ci the phctcgiuph.
Will you sponsor a Centrepoint room and get a homeless young person off the streets for good?
Full Nume
Addiess
Pcstccde
Telephcne
Pleuse tick this hcx und ccmplete ycui detuils i ycu vculd like tc ieceive emuil ccmmunicuticns icm Centiepcint
Emuil
ln ucccidunce vith the 199S Dutu Pictecticn Act, ve hcld ycui detuils tc picvide ycu vith updutes und uppeuls. l ycu dc nct vish
tc ieceive these pleuse ccntuct Centiepcint.
Under the Governments Gift Aid scheme, all donations made
by UK tax payers are worth a quarter more.
l um u UK tux puyei und vculd like Centiepcint tc cluim huck the tux cn ull dcnuticns l huve
mude ci the cui yeuis piici tc this yeui, und ull dcnuticns l muke icm the dute c this
decluiuticn until l nctiy ycu ctheivise. l undeistund thut l must huve puid un umcunt c inccme
tux ci cupitul guins tux ut leust equul tc the tux ycu iecluim cn my dcnuticns (ut leust 25p ci euch
1 dcnuted).
Dute , ,
I wish to sponsor a room at 12 a month
I wish to sponsor two rooms at 24 a month
I wish to sponsor rooms at a month
Please collect my payment on the 1st/15th of every month (please circle preferred date)
Please return this form to: Centrepoint Room Sponsorship,
Freepost ANG 2640, Colchester CO2 8BR. Thank you
Registeied Chuiity Nc 292411 RAP1112Zu1D
Tc The Munugei: Oiiginutcis ldenticuticn Nc.
6 5 9 1 u 7
Nume und ull uddiess c ycui Bunk ci Building Scciety:
Pcstccde
Nume(s) c Acccunt Hcldei(s)
Bunk Scit Ccde:
-

-
Acccunt Numhei:
lnstiucticns tc ycui Bunk ci Building Scciety: Pleuse puy Centiepcint Diiect Dehits icm the ucccunt detuiled in this
lnstiucticn, suh}ect tc the sueguuids ussuied hy the Diiect Dehit Cuuiuntee. l undeistund thut this instiucticn muy
iemuin vith Centiepcint und, i sc, detuils vill he pussed electicnicully tc my Bunk,Building Scciety.
Signutuie(s) Dute
Bunks und Building Sccieties muy nct uccept Diiect Dehit lnstiucticns ci scme types c ucccunt
Instruction to your Bank or Building Society to pay by Direct Debit
Your regular gift will be used to assist young people in sponsored rooms and for the general purposes of Centrepoint working with homeless and socially excluded young people.
RAP1112Zu1D
SHARES in struggling regional news-
paper publisher Johnston Press
inched up yesterday despite reporting
another slump in advertising.
The debt-laden group said print
and digital advertising sales for the 18
weeks to 5 November fell eight per
cent year-on-year as the faltering eco-
nomic recovery hit business spend-
ing.
Johnston, whose top titles are The
Scotsman and The Yorkshire Post,
said display advertising its largest
revenue category fell 3.4 per cent in
the 18 weeks, in line with the declines
seen in the first half of the year.
A GAIN of more than 30 per cent made
Hendersons China vehicle the top
equity fund performer in October,
according to new research.
The 32.42 per cent monthly rise put
the $175m (110m) Henderson HF
China fund, run by Caroline Maurer
and Andrew Mattock, ahead of Legg
Masons Brazil Equity Fund on 25.24
per cent, according to Lipper Global.
At the end of a month of volatility in
markets, the Guinness Global Energy
fund, run by Tim Guinness, a scion of
the brewer and also of the Hoare pri-
vate banking family, was ranked third,
with a rise of 24.73 per cent.
The rest of the top five was made up
by the Wellington US Mid-Cap Growth
Equity fund and the Long-Term
Investment fund in natural resources
Fund from SIA, which grew 24.49 and
23.32 per cent respectively.
Much of the industry was hit by
losses on Japanese investments and
the fund with the worst record last
month was Manek Growth, which was
down 12.54 per cent, Lipper said.
M&Gs Japan Smaller Companies
Fund also performed poorly, with a
loss of 7.76 per cent. CF Morant
Wrights Nippon Yield, the Invesco
Perpetual Japanese smaller companies
accumulation fund and Aberdeen
Globals Japanese smaller companies
fund were also named among the
worst-performing, down by between
6.5 and 7.5 per cent each.
Nobody from Manek was available
to comment but its report for the first-
half of this year cites concerns over the
effect on investments of the Arab
Spring, the Eurozone crisis, the
Japanese earthquake and oil prices.
Meanwhile international fund man-
agement group Neuberger Berman
yesterday said it had raised about
$720m (455.32m) for a global fund for
investment in private equity funds.
Hendersons
China fund is
biggest riser
SWITZERLANDS biggest life insurer
said premium revenues fell by a fifth
in the third quarter to SwF2.8bn
(1.9bn), as wealthy clients fearing for
their privacy stayed away from invest-
ing in its funds.
Swiss Life said a healthy ten per
cent growth in its Swiss corporate
pensions and life business was wiped
out by a 48 per cent fall in its high net
worth insurance division, which
offers tax-efficient insurance wrap-
per policies to wealthy individuals.
In the first nine months of 2011
Swiss Life saw a 59 per cent fall in the
division, which allows clients to place
stocks, private equity holdings and
other bankable assets into life insur-
ance policies to lower their tax rate.
Its French and German businesses
also saw about 20 per cent falls in pre-
mium income as chief executive
Bruno Pfister said it had raised the
quality of the business it took on.
We are not aiming for growth at
any price, he said. We have succeed-
ed in making advances in our key
strategic core areas.
Swiss Life said rich clients were put
off by the uncertainties in private
banking. Wrappers have come under
scrutiny by Swiss financial markets
regulator FINMA this year.
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Worries among rich clients
cut revenues for Swiss Life
INVESTMENT scheme HarbourVest
Global Private Equity yesterday said
its net asset value (NAV) rose 1.5 per
cent last month.
The listed fund of funds said NAV
per share hit $11.19 (7.06), up from
$11.02 on 30 September.
The rise was driven by increases in
the value of its publicly traded hold-
ings and foreign currency move-
ments in its favour.
HarbourVest also said 71 per cent
of its portfolio is based in the US
with most of the rest in Europe.
There were 32 merger and acquisi-
tion deals in its portfolio last month.
HarbourVests
fund ups NAV
Johnston Press
ad sales slump
BY PETER EDWARDS
ASSET MANAGEMENT
MEDIA
ASSET MANAGEMENT
Andrew Formicas Henderson had a stellar October Picture: Micha Theiner/CITY A.M.
BY ALISON LOCK
INSURANCE
News
ANALYSIS l Henderson
p
120
118
116
114
112
114.30
15 Nov
CONSUMER price inflation in the
UK dropped slightly in October, fig-
ures out yesterday from the Office
for National Statistics (ONS)
revealed, though it remains well
above the Bank of Englands target.
Headline CPI inflation fell from
5.2 per cent in the year to
September to five per cent last
month.
A 0.9 per cent fall in food prices
contributed most to the decline in
inflation, accounting for 0.13 per-
centage points of the 0.2 drop.
The supermarket price war is
working for shoppers, said the
British Retail
Consortiums
Stephen Robertson. Theres been
no bigger month-on-month drop in
prices for more than two years.
But clothes prices rose strongly,
up five per cent annually.
Meanwhile the cost of living,
measured on the retail price index
(RPI) rose by 5.4 per cent, slowing
from 5.6 per cent in September.
Once direct taxes are taken into
account, the tax and price index
(TPI) increased by 5.1 per cent over
the twelve months to October, slow-
ing from 5.3 per cent in September.
Bank of England governor Sir
Mervyn King (pictured below) wrote
to George Osborne to explain the
current high level of inflation
reflects the increase in VAT earlier
this year, and previous steep increas-
es in import and energy prices.
Without such factors, he believes
inflation would be below the two
per cent target the VAT rise alone
contributed 0.76 percentage points
to CPI and will drop out of the fig-
ures in January.
However, Januarys planned
increase in fuel duty will add almost
0.1 percentage points to inflation,
slightly mitigating the fall.
Furthermore, core inflation,
stripping out some temporary fac-
tors like imported food and energy
price rises, increased, rising to 3.4
per cent from 3.3 per cent in the
year to September.
At five per cent, consumer price
inflation remains above earnings
growth. Weekly wages in the three
months to September, excluding
bonuses, rose by just 1.8 per cent.
Supermarket price
war dents inflation
BY TIM WALLACE
UK ECONOMY
News
NEWS | IN BRIEF
Fed leaders split on QE impact
Increasing asset purchases would risk
higher inflation, St Louis Fed president
James Bullard said yesterday though
Chicago Fed boss Charles Evans said he
policy could be extended to provide an
extra boost to the economy. Asset pur-
chases are a potent monetary tool, said
Bullard. They must be used carefully
because increases in the size of the bal-
ance sheet entail additional inflationary
risks. However Evans said additional
asset purchases could further firm our
commitment to accommodative policy
if current policies do not boost economic
growth sufficiently.
London least pessimistic in UK
Economic optimism is at a three year
low, according to new research from
Ipsos Mori Loyalty, though Londoners
are the least pessimistic in the country.
Only 16 per cent nationwide believe the
economy will improve in the next 12
months, while 57 per cent expect it to
worsen. This net balance of minus 41
per cent is the lowest since December
2008. London registered the highest net
balance, at minus 28 per cent, whilst the
north and Scotland were most pes-
simistic at minus 48 per cent. London is
the only region which has seen house
price growth over the last 12 months,
and 2012 is Olympic year, explained
Ipsos Mori Loyaltys Charles
Adriaenssens.
IMF: FREE UP CHINAS BANKING SYSTEM
THE IMF, headed by Christine Lagarde, has warned China needs to address its banking
systems vulnerabilities. The country needs to liberalise its financial markets to give
banks and investors more freedom, allowing them to better react to any future credit,
property or currency shocks, the Fund said yesterday. Picture: REUTERS
US RETAIL sales expanded in October,
while the decline in manufacturing
came to a halt, according to upbeat fig-
ures released yesterday by the
Commerce Department and the New
York Fed, boosting hopes that the US
will avoid the slump hitting many
European economies.
Sales increased by 0.5 per cent
month-on-month and were 7.2 per
cent higher than in October 2010.
Electronics boomed, with sales ris-
ing 3.7 per cent on Septembers figure,
though department stores saw overall
sales fall 1.2 per cent on the month.
Meanwhile, manufacturers in New
York State reported improving busi-
ness conditions in November.
The New York Feds Empire State
survey index registered conditions at
0.6 in November, the first positive read-
ing since May.
The outlook for the future has
improved sharply with a net balance of
39.02 per cent of respondents expect-
ing conditions to be better in six
months time. The strong confidence
figure compares with a net balance of
6.74 per cent who were expecting an
improvement in the previous month.
Manufacturers are also benefiting
from a 0.3 per cent monthly decline in
producer prices in October, led by falls
in gasoline and residential gas prices.
Inventories fell in the month,
though suppliers expect to replenish
them in the near future.
It is becoming quite clear that the
economy has a decent amount of
momentum that should help it cope,
at least for now, with any adverse
effects emanating from Europe, said
Paul Dales of Capital Economics.
US recovery keeps
pace as retail and
manufacturing rise
BY TIM WALLACE
US ECONOMY
ANALYSIS l UK inflation is among the highest of all major economies

Annual CPI
inflation %
US
2000 2002 2004 2006 2008 2010 2012
10
8
6
4
-4
2
-2
0
Eurozone
UK
China
Japan
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 Wages have not grown substantially in real terms for almost four years
%
UK inflation - CPI YoY change
2002 2003 2004 2005 2006 2007 2008 2009 2011 2010
6
5
4
3
0
2
1
Average weekly earnings excluding
bonus - YoY change (3m average)
5%
Inflation
exceeding
wage rises
g
1.8%
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
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News
ELECTROLUX said yesterday it would
double the size of planned cost-cuts as
the world number two home appli-
ance maker tries to offset the effects of
the global slowdown and rising raw
materials prices.
Electrolux faces shrinking demand
in its mature markets in North
America and Europe as consumers,
worried about their finances, cut back
on big ticket items such as fridges.
The firm also expects raw materials
prices to keep on rising in 2012,
though at a slower pace than in 2011.
As a result, Electrolux said it now
aimed to slash 5.1bn crowns (482m)
from its cost base over the next few
years through restructuring its manu-
facturing operations, cutting jobs and
other efficiency measures.
Electrolux, setting the new savings
measures just a year after a last round
of cuts was announced, said its
expanded efficiency programme
would reduce annual costs by an addi-
tional 2.6bn crowns.
Electrolux has been tangibly affect-
ed by the decline in consumer confi-
dence in the mature markets, the
company said in a statement. At the
same time increased costs for raw
materials have had a negative impact
on earnings.
In October, Electrolux gave a bleak
picture of its market, saying demand
would fall by one per cent in western
Europe and between four and five per
cent in North America this year.
Electoluxs Stockholm-listed shares
tumbled 6.3 per cent yesterday.
Further cost
cuts planned
at Electrolux
FTSE-250 listed transport company
Stagecoach has sold its school bus
business in the US, offloading an
arm of the business it had operated
since 1999.
The groups US business has cen-
tered on its growing Megabus net-
work across the country in recent
years, and it said that the sale
would allow it to focus on less regu-
lated markets.
The school bus operations in
Wisconsin were sold to Student
Transportation yesterday for almost
30m.
Stagecoachs Megabus operations,
already established in the UK, also
serve more than 60 major cities
across the US and revenues at the
newer business are growing fast
up from $45m (28.4m) to the end
of April 2010 to more than $75m at
the same point this year.
Stagecoach pulls out of
US school buses business
Stagecoach has sold its Wisconsin school bus operations Picture: GETTY
BY HARRY BANKS
CONSUMER
BY ELIZABETH FOURNIER
TRANSPORT
ANALYSIS l AB Electrolux
SEK
122
120
118
114
112
110
116
113.40
15 Nov
NEWS | IN BRIEF
Afren on track for production
Afren has highlighted its production
prospects in the buzzing Kurdistan oil sec-
tor as it said it was on track to meet its
year-end target rate for output on an
anticipated ramp up at its key Nigeria
field. Afren said its production could rise
by as much as 15,000 barrels of oil equiv-
alent per day (boepd) during the first half
of 2012, as it brings fields in the Kurdish
part of Iraq onstream and rides a wave of
heightened interest in the region since oil
major Exxon Mobil signed a deal on Friday.
John Menzies see 20pc growth
Newspaper distribution and aviation serv-
ices firm John Menzies said it was on
track to deliver more than 20 per cent
growth in full-year pre-tax profit citing
higher contract wins in the aviation divi-
sion. John Menzies, which provides pas-
senger handling services to Lufthansa,
Emirates and easyJet, said it was trading
in line with expectations in the four
months ended 31 October. The Scotland-
based companys aviation unit reported a
12 per cent rise in revenue for the period.
This was boosted by a net win of 43 con-
tracts in the year-to-date period that
added annualised revenue of 34m.
Drax shelves green power plans
Power station operator Drax may not pur-
sue plans to build two green energy proj-
ects as it says the new state aid level for
the green fuel it intends to use are too low.
In August Draxs plans to build two 299-
megawatt (MW) biomass-fired power
plants in Yorkshire and North Lincolnshire
to diversify its power generation portfolio
into greener energy sources were
approved, but the projects are now in
doubt as Drax says the proposed subsidy
level is disappointing.
News
Kames Capital
Greg Mackay has joined the investment
manager as a fixed income investment
manager in the government bonds
team, responsible for derivatives. Prior
to joining Kames Capital, Mackay was
head of fixed income and derivatives at
Nationwide Building Society.
United First Partners
The brokerage has hired Brian Mitchell
as head of business development. Prior
to joining UFP, Brian was head of deal-
ing and chief operating officer of the
investment division at Gartmore.
Investec
Jamie Lowe has joined Investec
Investment Banking and Securities to
lead the banks new closed end funds
advisory, research and broking team. He
joins from Arbuthnot Securities, where
he was head of closed end funds.
Berwin Leighton Paisner
The law firm has hired Ashurst partner
Simon Small to strengthen its finance
capabilities and expand its banking and
capital markets group. Prior to Ashurst,
Small was a partner at Linklaters.
Vanguard Asset Management
Joy Yang, previously at Scudder, GBI,
AXA Rosenberg and Scottish Widows,
has joined the fund manager as head of
the equity team. In addition, Nick Pierce,
formerly of BGI and Gartmore, joins as
head of fixed income operations.
Crossbridge
The financial markets consultancy has
appointed Matthew Shaw as an associ-
ate partner. Shaw has 12 years experi-
ence delivering business and
technology solutions to firms including
UBS, Deutsche Bank, Standard Bank
and Tullett Prebon.
Savills
Amelia Greene has joined Savills as head
of Chelsea lettings. Greene has worked
in the property industry since 2001 for
clients including the Wellcome Trust and
the South Kensington Estate.
JKX Oil & Gas
Cynthia Dubin, previously chief financial
officer of Canamens Energy, has been
appointed as finance director, effective
from 21 November. Michael Kayser,
interim director of finance, will remain
at JKX until Christmas.
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
Deloitte Analytics
Deloitte Analytics has strengthened its partner
team in the UK with the appointment of con-
sumer business specialist Jason Gordon, who
will lead the divisions consumer business servic-
es team. In his new role, Gordon will advise
retail, consumer products and travel, hospitality
and leisure organisations on ways to gain
improved insight and commercial value from
their data. Gordon, who joins from Booz &
Companys demand analytics group, will also
provide strategy consultancy services.
Wall Street edges
up on retail stats
U
S stocks rose yesterday, boost-
ed by swift steps toward for-
mation of a new Italian
government and stronger-
than-expected reports on the US
economy.
Stocks sensitive to economic
growth led the rally, with technolo-
gy and industrials the best perform-
ers. Apple rose more than 2.5 per
cent, up for only the second day in
the last eight.
But despite yesterdays advance
and after posting gains in five of the
last six weeks, the S&P 500 is flat for
the year and trapped in a tight
range.
Markets have been jittery as the
Eurozones debt crisis is in danger
of spiraling out of control.
Borrowing costs spiked again in
Italy. France, until now not viewed
as problematic, also was hit by high-
er bond yields.
Mario Monti, Italys Prime
Minister-designate, is expected to
complete the process of forming a
government in less than three days,
much faster than normal, as Italy
races to ward off a major financial
and political crisis that has pushed
its borrowing costs to untenable lev-
els.
US retail sales rose broadly in
October, and a gauge of manufac-
turing in New York state advanced
in November, suggesting the econo-
my could maintain momentum
through the fourth quarter and
pushing back recession fears.
The Dow Jones industrial average
gained 17.18 points, or 0.14 per cent,
to 12,096.16. The S&P 500 rose 6.03
points, or 0.48 per cent, to 1,257.81.
Meanwhile the Nasdaq Composite
added 28.98 points, or 1.09 per cent,
to 2,686.20.
The euro fell against the US dol-
lar, which has of late been an indi-
cator of a declining stock market.
The decoupling from this correla-
tion could confirm the momentary
shift in focus to the US economy.
In earnings news, Wal-Mart
Stores quarterly profit missed
expectations as the economy con-
tinues to weigh on customers in the
United States, its largest division.
Shares of the worlds largest retailer
dropped 2.4 per cent to $57.46.
About 6.3bn shares traded on the
New York Stock Exchange, NYSE
Amex and Nasdaq, far below the
years current daily average of about
8bn.
Advancing stocks outnumbered
declining ones on the NYSE by a
ratio of more than eight to five,
while on the Nasdaq, about two
stocks rose for every one that fell.
B
RITAINS top shares were flat
after a roller-coaster session
yesterday, with weaker banks
and integrated oils just coun-
tering a rally by miners as growth
and debt crisis worries in the
Eurozone offset positive signs on the
US economy late in the day.
At the close, the FTSE 100 index
was down 1.60 points or 0.03 per
cent at 5,517.44, having reversed a
rally to a session high of 5,551.38
from an early low of 5,428.60.
Another day of see-saw action for
the FTSE as the early sellers turned
into buyers, reversing losses after
better than expected US retail sales,
said Angus Campbell, head of sales
at Capital Spreads, before it fell back
in the closing auction.
Miners had provided the main
fuel for the blue chip recovery, with
Rio Tinto up one per cent after US
retail sales rose more than expected
in October.
Precious metals miner Fresnillo
added three per cent.
But platinum miner Lonmin fell
2.7 percent as Goldman Sachs cut its
rating to sell from neutral and
lowered its 2012 production esti-
mates after results on Monday.
There was also slightly more
upbeat news on the UK economy yes-
terday as inflation in Britain eased
more than forecast to five per cent in
October.
However, economic news from
Eurozone was less positive.
The 17-nation Eurozone economy
grew modestly in the third quarter
from the second, lifted by France
and Germany, but economists said
the bloc is almost certainly heading
for a recession.
And German analyst and investor
sentiment slumped in November,
the ninth monthly fall in a row, a
survey from the Mannheim-based
ZEW economic think tank showed.
Traders also continued to fret over
Eurozone bond yields, particularly
for Italy which remained at long-
term unsustainable levels following
the downbeat economic data from
Europe.
Italy, where Prime Minister-desig-
nate Mario Monti is struggling to
form a coalition government, must
cut its mounting debt pile and boost
growth if it is to avoid a sovereign
bankruptcy, which could spell the
end of the euro.
Without a clear mandate and the
firepower from all political parties,
Monti will find the going tough in
order to prevent his country from
going into meltdown and having a
knock effect across global
economies, said Capital Spreads
Campbell.
Banks were the worst performing
blue chip sector as the Eurozone con-
cerns mounted up, led by part-state-
owned lenders Lloyds Banking
Group and Royal Bank of Scotland,
off 3.8 percent and 3.2 percent
respectively.
Luxury goods firm Burberry was
the biggest individual blue chip fall-
er, off 5.2 per cent as the global
growth outlook took the shine off its
in-line first-half results.
Artificial hip and knee maker
Smith & Nephew, perennially
rumoured to be a bid target, was the
top FTSE 100 gainer, up 3.5 per cent
to extend Mondays gains after it was
upgraded by Exane BNP Paribas.
Its a difficult market to call at
the moment, no one wants to be
involved if the Eurozone is going to
fall apart, but everyone wants to
believe the recovering US economy
might come to their rescue, said
Mic Mills, head of electronic trading
at ETX Capital.
Blue-chips remain level after
mixed day of economic news
THELONDON
REPORT
THENEW YORK
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Aviva PLC
360
340
320
300
280
Sep Oct Nov
p
312.10
15 Nov
AVIVA
Morgan Stanley rates the insurance group as equal weight with a target
price of 445p, after the companys third quarter metrics for 2011 showed
continued progress, particularly in its non-life operations. However, the broker
says Avivas IGD coverage was surprisingly weak, especially after the recent
hybrid bond call. While it sees Avivas capital position as robust, Morgan
Stanley says the shares are unlikely to be re-rated in the current environment.
ANALYSIS l Bhp Billiton PLC
2,100
2,000
1,900
1,800
1,700
Sep Oct Nov
p
1,961.00
15 Nov
BHP BILLITON
Goldman Sachs rates the mining giant as a buy with a target price of
3,100p after a petroleum investor briefing that focused on the companys
strategy for its US onshore portfolio. The broker sees the portfolio as one of
BHPs long-life, high growth and politically low-risk assets, and says it is
undervalued by the market. However, key risks could come from weaker com-
modity prices and a weaker US dollar.
ANALYSIS l National Grid PLC
640
620
600
580
Sep Oct Nov
p
629.00
15 Nov
NATIONAL GRID
Citi rates the UK utilities company as neutral with a target price of 610p
ahead of first-half results on 17 November. The broker predicts operating
profit of 1,442m, down four per cent, and earning per share of 18.9p,
down seven per cent. Citi says negative timing differences that will impact
revenues in the US businesses should be offset by higher inflation driving
the revenue in the UK businesses as RPI is applied to tariffs.
5Sep 15Aug 23Sep 13Oct 2Nov
5,800
5,000
5,400
5,200
5,600
ANALYSIS l FTSE
5,517.44
15 Nov
I
N THE midst of the European crisis, the gov-
ernment has made a strategic error by advo-
cating fiscal union and economic
governance for the Eurozone.
The European summit proposals agreed on 26
October do not have any real legal basis and sim-
ply reflect the determination of Germany and
France to go ahead, whatever the rules may say,
with their own kind of Europe. As Angela Merkel
has said, she wants a new Europe but unfortu-
nately the Prime Minister and the chancellor
have both advocated a fiscal union of the
Eurozone this is a major strategic error.
Germany simply cannot afford to bail out Italy
or Spain. The fiscal union is doomed to failure,
both because it cannot generate growth as a
result of overregulation and as strategic fault
lines within the treaties themselves prevent the
cohesion that Germany and France seek. Both
countries are also facing elections. The instabili-
ty of the fiscal union will generate further insta-
bility throughout Europe as a whole.
There is a further and for Britain, equally per-
ilous situation. While we are bound into the
EUs treaties, most recently the Lisbon Treaty,
we are faced with the prospect of solidarity
voting by the 17 countries in the fiscal union.
Together they represent 213 votes as against
132 for the rest. With 50 or so regulations on
financial services in the pipeline, we have
next to no chance of rectifying the funda-
mental errors and dangers that they rep-
resent to the City of London and the UK
financial services sector as a whole,
which provides 12 percent of the exche-
quers total tax receipts.
And make no mistake about it,
France and Germany have been eye-
ing our competitive advantage in
the City of London for decades
this is economic warfare by any
other means. As Roland Vaubel of
Mannheim University indicates,
the single market often operates
by alliances between member
states, raising rivals costs and even
regulatory collusion. There is a further problem,
which is that the coalition government acqui-
esced in the transfer of the jurisdiction to the EU
of the financial services sector, just as they acqui-
esced and advocated the concept of fiscal union
in the Eurozone itself. It is no consolation to hear
the Prime Minister at the Guildhall this Monday
calling for reform when the government itself
has acquiesced and advocated these policies.
What this situation requires is not only the
repatriation of powers such as social and employ-
ment legislation to the UK, but as I said in the
Eurozone crisis debate in Westminster Hall on 15
November, we require the fundamental renegoti-
ation of our relationship with the European
Union. The causes of our problems with Europe
are about the operation, effect and damage that
the treaties do to our national interests.
Fiscal union will not stabilise or put right the
chaotic European Union economy or the euro-
peripherys debt crisis and bailouts as riots and
protests grow, nor correct the EUs overregula-
tion, or the UKs acquiescence in a low/no-
growth Europe or prevent other members
finding ways of breaking the rules.
I warned about these dangers during the
Maastricht debates and as Martin Wolf has
recently written, If policymakers had under-
stood two decades ago what they know now,
they would never have launched the single cur-
rency. They did not listen then and they are not
listening now. The coalition governments policy
has trapped Britain on the sidelines like a game
of cricket, it is as if the captain of the team is sit-
ting in the pavilion and has decided to drop him-
self in the batting order from No. 4 to No. 10 in
the hope that somebody else will score the runs
as the wickets tumble. The government should
get out and bat for Britains interests.
The government is refusing a referendum,
despite the rebellion of 81 Conservative MPs two
weeks ago. Indeed, under the European Union
Act, passed last year, a referendum is explicitly
excluded under section four where a European
Treaty is tabled but applying to member states
other than the UK. Such a treaty is proposed for
December and the Euro-leaders are using all
devices possible to pretend it is a limited treaty
that does not affect the UKs vital national inter-
ests when the creation of a new two-tier Europe
most emphatically has that effect.
The problem is therefore economic, political
and constitutional. We are told repeatedly of the
virtues of the single market and that we do 40
per cent of our trade with other member states.
The truth is that in 2009, our current account
deficit with the EU countries was -12.9bn and
the deficit with the rest of the world -7.5bn
while in 2010, the current account deficit with
the EU was -51.7bn and the surplus with the
rest of the world 15bn. There is no growth in
Europe because of the intrinsic manner in which
the treaties operate. The solution is within our
grasp but it does not lie with reaffirmations of
our commitment to the European Union.
Bill Cash MP is the chairman of the European
Scrutiny Committee in the House of Commons.
28
The Forum
CITYA.M. 16 NOVEMBER 2011
France and Germany are
waging economic warfare by
any other means on the City
Downing Streets strategic
mistakes on Europe put our
national interest in danger
cityam.com/forum
BILL CASH
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
29
The consensus is
that banks need
greater reserves
but think again
Risky business:
Fresh threats in
new bank rules
A
NEARLY unanimous consensus (by
governments, the International
Monetary Fund, the European
Commission and the European
Banking Authority) is calling for a further
increase in the regulatory capital of banks,
in particular for those in the Eurozone.
The rationale for this is that if banks have
more capital they will more easily weather
crises and they will have an incentive to take
fewer risks. The second part of this widely
propounded argument, however, needs to
be questioned.
In reality, economic theory does not allow
us to ascertain whether an increase in the
regulatory capital of banks reduces or
increases bank risk-taking. There are two
opposing arguments on this point: argu-
ment A, the widely accepted view, places the
emphasis on shareholders limited liability;
argument B, the contrasting argument,
focuses on expected returns on equity.
ARGUMENT A: LIMITED LIABILITY
The shareholders of a bank have limited lia-
bility: they cannot lose more than the total
of the banks capital. This leads them to
encourage greater risk-taking by the bank,
increasing the banks debt leverage, and this
was indeed the case in the Eurozone until
2008, with some financing of risky projects.
The explanation for this is simple. A risk-
free utilisation of the banks funds will gen-
erate a fixed level of profit. Yet a riskier
utilisation of funds, if successful, will gener-
ate a greater level of profit. If the bank fal-
ters then shareholders will be protected by
their limited liability, so it is this protection
that will encourage shareholders to support
risky investments.
However, if the regulatory capital of the
bank is raised then the protecting effect of
limited liability is reduced, because share-
holders will have more to lose. Therefore an
increase in bank capital will lead to share-
holders preferring risk-free utilisation of the
banks funds.
ARGUMENT B: BANKS RETURN ON EQUITY
Economic theory can, however, also point to
the opposite conclusion.
If banks are required to hold more regula-
tory capital, then their return on equity
decreases, as can already be seen since 2007.
If the shareholders of banks have an objec-
tive with respect to the expected return on
equity then, in order to prevent it from
declining due to the rise in regulatory capi-
tal, they will be encouraged towards riskier
investments and asset purchases. This is
because, logically, greater risk-taking will
provide a higher expected return on invest-
ed capital. Therefore an increase in the
amount of capital banks have to hold will
lead to an increase in risk-taking behaviour.
In contrast, then, to the existing consen-
sus that sits behind recent and upcoming
regulatory changes, it is important not to
assume that an increase in the regulatory
capital of banks will automatically lead to a
reduction in bank risk-taking.
Patrick Artus is global chief economist at
Natixis.
Jaguar & jugaad
I have to agree with yesterdays
Forum article on Indias innovation
culture. Having spent three years
with a large multinational pharma-
ceutical company developing busi-
nesses in India, it was plain to see
that India was turning itself into
an innovation powerhouse and it
would be a force to be reckoned
with. Look at Jaguar Land Rover.
What struck me when working in
India was the approach to lean
innovation or jugaad, which
often reminded me of the
Heath Robinson attitude which
made this country great but is no
longer as visible as it used to be.
Too often, innovation budgets are
the first areas cut in hard times.
I have high hopes for the patent
box which the government is pur-
suing and I believe, if combined
with reducing red tape for many
businesses, it will stimulate innova-
tion and R&D in the UK.
Professor Luigi G Martini, chair
in pharmaceutical innovation,
Kings College London
Speak your mind
The Forum is open for you to
take part. Got a sharp comment
on one of todays columns or
rapid response topics? Do you
have another subject relating to
business and the economy you
want to share your opinion on?
We want to hear your views.
Readers are invited to comment
on the web: cityam.com/forum;
by email: theforum@cityam.com;
and on Twitter: @cityamforum.
The best responses will be
reprinted in The Forum.
RAPID RESPONSES
PATRICK ARTUS
BY JAMIE WHYTE
The Forum
W
HEN I was
nine years old
I learned that
money is cre-
ated by the central bank.
This gave me a brilliant
idea. Why not print up
millions for everyone in
the country and then we
would all be rich.
My father put me straight. He explained that money
is not in itself wealth. Printing more money would cre-
ate no more food or cars or houses or anything else. It
would merely increase the amount of money we would
need to swap for anything we wanted.
If I am insulting your intelligence with this lesson, I
am sorry. But people who ought to know better peo-
ple who are well over nine years old and supposed eco-
nomic experts appear to labour under my childish
confounding of money and wealth.
The BBCs business editor Robert Peston last
Wednesday called for the European Central Bank
(ECB) to lend money to governments that are unlikely
to repay their debts. This is a good idea, he claimed,
because the ECB is the only European institution
capable of creating unlimited resources. On Sunday,
Vince Cable, the business secretary, agreed with him.
Cable claimed that the ECB has to have unlimited
powers to intervene to support economies. Only
Germanys reluctance to unleash the ECBs printing
press prevents this unlimited power from being
deployed. Peston and Cable are dangerously deluded.
Suppose the ECB took their advice and printed a
trillion euros, bought most Italian government debt
and told the Italians that they need not honour it or
at least not all of it, which is what would happen if the
ECB took on Cables recommended role as lender of
last resort to governments. This gift could be given at
no cost to the ECB; printing money nowadays just
means electronically crediting peoples bank accounts.
But the first lesson of economics is that there is no
such thing as a free lunch. Someone must bear the
cost of this gift to the Italian government and its cred-
itors. In this case, the lunch is paid for by those holding
euros. By issuing a trillion new euros, the ECB would
dilute the value of the euros already in circulation.
Far from creating new resources when it creates
money, the ECB merely transfers wealth from people
with euros to people with debts denominated in euros.
Bailing out over-indebted sovereigns with freshly
printed euros is no different from bailing them out
with funds raised by a tax on cash and bank deposits.
If Peston and Cable realised that when central
banks create money they do not create wealth but
merely tax those holding money, they could not think
the power unlimited. Not only can you never raise
more from taxation than already exists but the
attempt to get anywhere near this absolute limit
always has ruinous economic consequences. With this
kind of tax on money, people become desperate to
replace money with consumables and real assets, ulti-
mately substituting the taxed currency with an alter-
native currency or with barter. At which point the
central banks power to tax vanishes.
The Germans know this from bitter experience. We
should be grateful for their influence on Eurozone poli-
cy. By contrast, the remedies proposed by Peston,
Cable and all the other economic children who fanta-
sise about unlimited powers to conjure up resources
from central banks printing presses threaten Europe
with economic calamity.
Jamie Whyte is a senior fellow of the Cobden
Centre and author of Crimes Against Logic
(McGraw Hill 2004).
The fantastical power
of the printing press
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
30
Wealth Management | Foreign Exchange
T
HE Japanese central bank, the Bank
of Japan (BoJ), has been locked in a
seemingly futile battle to weaken its
currency, the yen. A strong yen is
seen as damaging to Japanese exporters by
reducing their competitiveness overseas
and eroding the value of repatriated earn-
ings. But despite its past failures, it is likely
that the BoJ will intervene again. The ques-
tion for traders is when, and by how
much?
On 31 October, the BoJ intervened to
weaken the yen for the third time this
year, with finance minister Jun Azumi
declaring that he would continue to inter-
vene until he was satisfied. It is estimated
that the initial move cost the BoJ 40 tril-
lion (327bn), and a further trillion in the
three days following that. JPMorgan Chase
reports that the Japanese government is
exposed to a potential 40 trillion of losses
this year from its attempts to weaken the
yen.
But despite record levels of yen repatria-
tion by the Boj, interventionary policies
have failed to gain any lasting traction. The
problem is that it is difficult to change the
tide of currency flows with intervention in
the FX market alone. Unless there is a shift
away from the current climate of risk aver-
sion, it is difficult to imagine that we will
see an end of global haven flows driving
up the yen.
SWISS EXAMPLE
Much as Japan has seen its exporting econ-
Efforts to weaken the
yen have been flawed,
writes Craig Drake
Japan struggles to get
D
ESPITE new technocratic governments taking the
helm in Greece and Italy, financial markets remain
on edge regarding the future of Europes monetary
union. Serious fiscal reform is unlikely to quickly take
hold and may face very stiff opposition from populations
already suffering from serious economic hardship.
Meanwhile, the European Financial Stability Facility (EFSF)
bailout fund is turning out a to be a colossal failure, leading
many market analysts to conclude that the European
Central Bank (ECB) is the only institution in Europe that
can stabilise the regions credit markets in the short term.
The latest strategy call is for the ECB to announce
explicit ceilings on peripheral debt yields (say a 200 basis
points premium for Italian BTPs to German bunds) that
would effectively put an end to further deterioration in
credit prices, allowing the countries to refinance their
debt at reasonable rates for the foreseeable future.
Having seen the recent success of the Swiss National
Bank (SNB) at keeping the exchange rate of the euro-
Swiss franc above the SFr1.2000 mark for more than
two months, many market participants believe that simi-
larly explicit intervention tactics by the ECB would put an
end to the daily short selling assaults on Eurozone periph-
ery bonds.
It is clear from the Swiss experience that monetary
authorities achieve much greater respect from the mar-
kets and produce much more efficacious results when
they communicate specific target levels, rather than sim-
ply providing ad hoc support. Few speculators are willing
to challenge the unlimited buying power of central banks,
and the mere threat of such endless liquidity would pre-
vent the market from testing the resolve of the authori-
ties. Especially since short positions in peripheral debt
bonds carry a stiff daily penalty of negative interest costs
and are predicated on the quick collapse in values of the
instruments.
However, ECB officials are doing everything in their
power to undermine this proposal for stabilisation, by
making conditional threats regarding the future purchas-
es of Italian bonds and emphasising that the ECB will not
be the lender of last resort. As long as the ECB refuses to
fully commit to the Eurozone credit market, the euro-dol-
lar will continue to suffer death by a thousand cuts.
ECB NEEDS TO
COMMIT TO
SWISS PLAN
BORIS SCHLOSSBERG
DIRECTOR OF CURRENCY RESEARCH, GFT
The yen has been bloated by imported wealth Picture: REUTERS
omy hurt by an overvalued domestic cur-
rency, earlier in the year, the Eurozone cri-
sis caused huge haven flows into the Swiss
franc, overheating it to a level that the
Swiss National Bank (SNB) deemed to be
unsustainable, and damaging for Swiss
business.
On 6 September, the SNB retaliated by
announcing that it would put in place a
floor on the Euro-Swiss franc exchange
rate at SFr1.20 the SNB announced that
it was prepared to buy foreign currencies
in unlimited quantities.
To date, the decision taken by the chair-
man of the SNB, Philipp Hildebrand, has
been seen as a policy success. As you can
see from the chart, below left, euro-Swiss
franc has been successfully maintained
above the SFr level, despite continued mar-
ket volatility that would otherwise have
caused the franc to appreciate. Compared
to the moves made by the BoJ, the Swiss
have been transparent in their motives
and in their objectives. When they
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SFr
2011 Aug29 Sep12 Sep26 Oct 10 Oct 24 Nov7
1.24
1.22
1.20
1.18
1.16
1.14
1.12
ANALYSIS l Euro - Swiss franc
2011 Aug22 Aug29 Sep5 Sep12 Sep19 Sep26 Oct 3 Oct 10 Oct 17 Oct 24 Oct 31 Nov7
78
77.5
77
76.5
76
ANALYSIS l Dollar - Japanese yen
31
FOREX ANALYST PICKS
FOREX STRATEGIST
JOEL KRUGER
My pick: Remain short Australian dollar-dollar
Expertise: Technical analysis
Average time frame of trades: 1 day to 1 week
FOREX STRATEGIST
ILYA SPIVAK
My pick: Short euro-dollar
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
The restart of interest rate cuts and the spread of sovereign debt
woes to Italy a country almost certainly too big to be bailed out
suggest that the euro-dollar down trend, temporarily interrupted in
early October, is ready to resume. I have re-entered short at
1.3526, as prices completed a bearish head and shoulders chart
formation, aiming for targets at 1.3141 and 1.2836. A stop-loss
will be triggered on a daily close above 1.3882.
We continue to classify the latest market rally as corrective, with the
move putting in a lower top below the September high. The market is
now rolling back over to keep the downtrend intact and open a bearish
resumption. Look for the latest break below $1.0315 to now expose a
fresh drop back towards $0.9385 further down. Back under parity
should confirm and accelerate declines. Ultimately, only a sustained
break back above $1.0500 negates.
FOREX STRATEGIST
JOHN KICKLIGHTER
My pick: Short sterling-dollar; long dollar-yen; short euro-yen
Expertise: Fundamental analysis with risk management
Average time frame of trades: 1 day to 1 week
The short setup for dollar-yen below 78 from last week worked
well enough, but follow through will be troublesome. Now, Im look-
ing for an intervention reaction should officials allow price to reach
76. In the meantime, Im still interested in the possibility of a cable
break below $1.5850 (lowered from last weeks $1.59). On similar
technical and fundamental terms, euro-yen could be a good short on
a break below 105 should risk sell off.
T
RADERS are extremely cautious
over the fate of the euro. Despite
governmental changes in the
Eurozone, sentiment hasnt
appeared to pick up. After Merkels com-
ments that the Eurozone is in its worst
state since WWII, we should still expect
short-term bearishness over the euro and
strength in relatively more safe haven cur-
rencies such as the dollar. Capital Spreads
quotes euro-dollar at $1.3545-$1.3546.
The safe haven appeal of the yen
seems to show no signs of abating, as
clouds continue to loom large over the
Eurozone. Whats more, the clock is still
ticking as the US hunts for a deficit
reduction deal. Even though the prospect
must be for this to be realised in some
shape or form at the eleventh hour, mar-
kets are already jittery. This uncertainty
cant be helpful to the greenback. Of
course, the Bank of Japan could jump in
with another slug of intervention, which
would certainly break the trend. The
clever money will look to take short posi-
tions after the upside blip has extended
itself, because fundamental market
forces are too strong and the Bank of
Japans intervention fund is simply too
small to hold down the value of yen. IG
Index quotes dollar-yen at 77.05-
77.06.
The 0.8530 level in euro-sterling
has proven to offer good support in
recent months. Last week we saw the
third attempt to break through it, as the
euro was pushed through the 0.8530
level and traded down to 0.8486. Until
now the euro has avoided punishment
against sterling for various reasons, but
as investors continue to liquidate euro-
based investments and inward UK flows
increase, traders will add to short euro
positions and push the single currency
out of its comfort zone. FairFX quotes
euro-sterling at 0.8529-0.8531.
Eurozone concerns continue to domi-
nate currency markets this week. The
Aussie dollar fell along with the euro,
from highs of around $1.0344. With
uncertainty and the technical picture
looking bearish, Australian dollar-dollar
looks vulnerable to a move to parity.
Spread Co quotes Australian dollar-dollar
at $1.0163-1.0165.
Philip Salter
THE TIPSTER
DONT MENTION THE FAULTS
TOWERING OVER THE EUROZONE a grip on its currency
announced their plan, they told the
markets just what level they would
defend and what resources they had
available to do so. In comparison, the
BoJ interventions do not appear to be
part of any coherent plan simply a
reaction to the yen triggering some
pain for Japanese business interests.
With this in mind, could Jun
Azumi follow in Hildebrands foot-
steps? He could make a bold move
and declare that he is prepared to
place a floor of 76 under the dollar-
Japanese yen exchange rate and
bankroll the policy to the death.
Ironically, one of the biggest stum-
bling blocks to Japan mimicking
Switzerland is the success of the
SNBs move with the floor under-
neath the Swiss franc, the dollar and
the yen are the only anti-cyclical
options available for safe haven
investors.
From a political point of view,
Japan does not have an independent
central bank. Whereas the Swiss are
free to print francs to their hearts
delight, Japans currency policy is
dictated by the Ministry of Finance.
The Japanese FX market dwarfs that
of the Swiss, and after the huge loss-
es that have been sustained to date
by the Japanese treasury attempting
to weaken the yen, the chance of the
Ministry of Finance writing a blank
cheque for the BoJ to intervene is
fairly slim though not nonexistent.
TRADING OPPORTUNITIES
As the BoJ ends a two-day policy
review today, it is highly unlikely
that they will make any moves on
the yen, especially after a pro-
gramme of easing in October to bol-
ster its asset buying fund.
According to Stephen Gallo, head
of market analysis for Schneider FX,
any move is more likely to come at
the end of the month as Japanese
business repatriate yen for interim
profit reporting or when the
Japanese financial year ends on the
31 March.
Until then, dollar-yen provides a
good range-trade opportunity, as the
market tries to second guess the BoJ.
LON GD ONCE FIX AM...........1765.00 -15.50
SILVER LDN FIX AM ..................34.22 -0.08
MAPLE LEAF 1 OZ ....................37.14 0.18
LON PLATINUM AM................1630.00 -20.00
LON PALLADIUM AM...............656.00 -3.00
ALUMINIUM CASH .................2176.00 0.00
COPPER CASH ......................7347.00 0.00
LEAD CASH...........................2025.50 0.00
NICKEL CASH......................22675.00 0.00
TIN CASH.............................17500.00 0.00
ZINC CASH ............................2215.00 32.50
BRENT SPOT INDEX................113.16 -1.00
SOYA .....................................1178.25 12.25
COCOA..................................2444.00 -45.00
COFFEE...................................230.95 -3.00
KRUG.....................................1845.00 14.30
WHEAT ....................................147.75 -1.00
AIR LIQUIDE........................................88.58 -0.79 100.65 80.90
ALLIANZ..............................................73.38 -1.62 108.85 56.16
ANHEUS-BUSCH INBEV ....................42.23 -0.10 45.11 33.85
ARCELORMITTAL...............................13.59 -0.34 28.55 10.47
AXA........................................................9.88 -0.53 16.16 7.88
BANCO SANTANDER...........................5.51 -0.14 9.20 5.05
BASF SE..............................................50.89 -0.30 70.22 42.19
BAYER.................................................47.24 0.22 59.44 35.36
BBVA......................................................5.80 -0.17 9.17 4.94
BMW ....................................................57.55 -0.61 73.85 43.49
BNP PARIBAS.....................................29.98 -1.84 59.93 22.72
CARREFOUR ......................................18.97 -0.70 34.12 14.66
CRH PLC .............................................13.04 -0.46 17.40 10.28
DAIMLER.............................................32.51 -1.16 59.09 30.52
DANONE..............................................47.55 -0.69 53.16 41.92
DEU.BOERSE OFFRE ........................40.50 -0.13 55.75 35.46
DEUTSCHE BANK..............................27.96 -0.69 48.70 20.79
DEUTSCHE TELEKOM.........................9.29 -0.09 11.38 7.88
E.ON.....................................................17.15 -0.20 25.54 12.50
ENEL......................................................3.16 -0.06 4.86 2.81
ENI .......................................................15.68 0.08 18.66 11.83
FRANCE TELECOM............................12.46 -0.15 16.95 11.12
GDF SUEZ ...........................................19.72 -0.09 30.05 18.32
GENERALI ASS...................................12.26 -0.05 17.05 10.34
IBERDROLA..........................................4.74 -0.11 6.50 4.29
INDITEX ...............................................65.31 -0.16 69.40 50.92
ING GROEP CVA...................................5.36 -0.31 9.50 4.21
INTESA SANPAOLO.............................1.22 -0.01 2.47 0.85
KON.PHILIPS ELECTR.......................14.01 -0.30 25.45 12.01
L'OREAL..............................................77.56 -0.63 91.24 68.83
LVMH..................................................114.00 -2.75 132.65 94.16
MUNICH RE.........................................89.75 -0.98 126.00 77.80
NOKIA....................................................4.80 -0.01 8.49 3.33
REPSOL YPF.......................................21.71 -0.18 24.90 17.31
RWE.....................................................28.80 -0.59 55.88 21.22
SAINT-GOBAIN...................................29.90 -0.78 47.64 26.07
SANOFI ................................................49.42 -0.09 56.82 42.85
SAP......................................................44.14 0.10 46.15 32.88
SCHNEIDER ELECTRIC.....................39.53 -0.96 61.83 35.94
SIEMENS .............................................73.14 -0.27 99.39 62.13
SOCIETE GENERALE.........................17.66 -0.97 52.70 14.32
TELECOM ITALIA..................................0.86 -0.02 1.16 0.70
TELEFONICA ......................................13.65 -0.21 18.75 12.50
TOTAL..................................................37.17 -0.43 44.55 29.40
UNIBAIL-RODAMCO SE...................131.00 -2.45 162.95 124.05
UNICREDIT............................................0.74 -0.03 2.03 0.64
UNILEVER CVA...................................24.33 -0.06 25.13 20.90
VINCI ....................................................31.92 -0.61 45.48 29.49
VIVENDI ...............................................15.48 -0.41 22.07 14.10
VOLKSWAGEN VORZ ......................127.25 -0.35 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5517.44 -1.60 -0.03
FTSE 250 INDEX. . . . . . . . 10260.11 -87.65 -0.85
FTSE UK ALL SHARE . . . . 2840.36 -4.00 -0.14
FTSE AIMALL SH . . . . . . . . 724.54 -0.95 -0.13
DOWJONES INDUS 30 . . 12096.16 17.18 0.14
S&P 500 . . . . . . . . . . . . . . . 1254.00 2.22 0.18
NASDAQ COMPOSITE . . . 2686.20 28.98 1.09
FTSEUROFIRST 300 . . . . . . 970.17 -5.30 -0.54
NIKKEI 225 AVERAGE. . . . 8541.93 -61.77 -0.72
DAX 30 PERFORMANCE. . 5933.14 -51.88 -0.87
CAC 40 . . . . . . . . . . . . . . . . 3049.13 -59.82 -1.92
SHANGHAI SE INDEX . . . . 2529.76 1.05 0.04
HANG SENG. . . . . . . . . . . 19348.44 -159.74 -0.82
S&P/ASX 20 INDEX . . . . . . 2576.00 0.00 0.00
ASX ALL ORDINARIES . . . 4351.50 0.00 0.00
BOVESPA SAO PAOLO. . 58258.23 -288.74 -0.49
ISEQ OVERALL INDEX . . . 2663.27 -31.41 -1.17
STI . . . . . . . . . . . . . . . . . . . . 2778.97 34.80 1.27
IGBM. . . . . . . . . . . . . . . . . . . 825.35 -13.97 -1.66
SWISS MARKET INDEX. . . 5664.91 3.20 0.06
Price Chg %chg
3M........................................................81.87 0.00 98.19 68.63
ABBOTT LABS ...................................54.50 0.26 55.61 45.07
ALCOA ................................................10.36 -0.02 18.47 8.45
ALTRIA GROUP..................................27.77 0.15 28.14 23.20
AMAZON.COM..................................217.83 -1.10 246.71 156.77
AMERICAN EXPRESS........................49.95 0.50 53.80 41.25
AMGEN INC.........................................56.59 -0.74 61.53 47.66
APPLE...............................................388.83 9.57 426.70 297.76
AT&T....................................................29.25 0.06 31.94 27.20
BANK OF AMERICA.............................6.13 0.08 15.31 5.13
BERKSHIRE HATAW B.......................75.93 0.07 87.65 65.35
BOEING CO.........................................67.94 0.00 80.65 56.01
BRISTOL MYERS SQUI ......................31.21 -0.30 33.27 20.05
CATERPILLAR....................................97.07 0.54 116.55 67.54
CHEVRON.........................................103.27 -2.90 110.01 80.41
CISCO SYSTEMS................................19.12 0.18 22.34 13.30
CITIGROUP.........................................28.02 -0.36 51.50 21.40
COCA-COLA.......................................68.00 0.21 71.77 61.29
COLGATE PALMOLIVE......................88.79 0.14 94.89 74.86
CONOCOPHILLIPS.............................71.99 0.29 81.80 58.65
CVS/CAREMARK................................38.95 0.18 39.50 29.45
DU PONT(EI) DE NMR........................48.30 0.05 57.00 37.10
EXXON MOBIL....................................79.09 0.13 88.23 63.47
GENERAL ELECTRIC.........................16.20 0.10 21.65 14.02
GOOGLE A........................................616.56 3.56 642.96 473.02
HEWLETT PACKARD.........................28.24 0.92 49.39 19.92
HOME DEPOT.....................................38.07 -0.18 39.38 28.13
IBM.....................................................188.75 1.40 190.53 141.18
INTEL CORP .......................................25.34 0.71 26.78 19.16
J.P.MORGAN CHASE.........................32.70 0.15 48.36 27.85
JOHNSON & JOHNSON.....................64.99 0.08 68.05 57.50
KRAFT FOODS A................................35.48 0.05 36.30 24.30
MC DONALD'S CORP ........................94.47 0.41 95.45 72.14
MERCK AND CO. NEW......................35.73 0.06 37.65 29.47
MICROSOFT........................................26.74 -0.02 29.46 23.65
OCCID. PETROLEUM.........................98.81 1.00 117.89 66.36
ORACLE CORP...................................32.96 0.66 36.50 24.72
PEPSICO.............................................64.50 1.70 71.89 58.50
PFIZER ................................................19.87 0.08 21.45 16.25
PHILIP MORRIS INTL .........................71.52 0.31 72.74 55.85
PROCTER AND GAMBLE ..................63.56 0.51 67.72 56.57
QUALCOMM INC ................................57.40 0.30 59.84 45.98
SCHLUMBERGER ..............................75.97 0.35 95.64 54.79
TRAVELERS CIES..............................57.29 -0.24 64.17 45.97
UNION PACIFIC ................................103.38 0.41 107.89 77.73
UNITED TECHNOLOGIE ....................79.33 0.28 91.83 66.87
VERIZON COMMS ..............................37.24 0.24 38.95 31.60
WAL-MART STORES..........................57.46 -1.43 59.40 48.31
WALT DISNEY CO ..............................36.45 0.33 44.34 28.19
WELLS FARGO & CO.........................25.29 0.19 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 ..................0.645 0.00
LIBOR Euro - 12 months ................1.995 0.00
LIBOR USD - overnight...................0.143 0.00
LIBOR USD - 12 months.................0.991 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 .........................3.100 0.02
European repo rate.........................0.463 -0.02
Euro Euribor ....................................0.919 0.00
The vix index ...................................30.94 -0.19
The baItic dry index ........................1.818 -0.01
Markit iBoxx...................................240.60 1.48
Markit iTraxx..................................179.57 7.23
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
BAE Systems . . . . . .284.5 -1.3 361.1 248.1
Chemring Group . . . .509.5 -8.0 736.5 485.0
Cobham . . . . . . . . . . .181.0 -0.2 236.5 168.5
Meggitt . . . . . . . . . . . .382.9 -2.6 397.6 304.9
QinetiQ Group . . . . . .121.0 0.0 136.3 97.7
RoIIs-Royce Group . .725.5 -1.5 738.0 557.5
Senior . . . . . . . . . . . . .164.5 -1.7 190.6 132.6
UItra EIectronics . . .1590.0 -5.0 1830.0 1305.0
GKN . . . . . . . . . . . . . .187.6 -5.3 245.0 157.0
BarcIays . . . . . . . . . . .171.2 -2.9 333.6 138.9
HSBC HoIdings . . . . .501.3 -3.4 730.9 473.6
LIoyds Banking Gr . . .27.3 -1.1 69.9 27.2
RoyaI Bank of Sco . . .21.2 -0.7 49.0 19.7
Standard Chartere .1356.0 -0.5 1901.5 1169.5
AG Barr . . . . . . . . . .1213.0 -57.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .337.9 7.9 503.5 289.9
Diageo . . . . . . . . . . .1337.0 16.5 1344.0 1112.0
SABMiIIer . . . . . . . . .2232.5 20.5 2354.5 1979.0
AZ EIectronic Mat . . .237.9 -2.1 338.1 206.1
Croda Internation . .1745.0 -18.0 2081.0 1367.0
EIementis . . . . . . . . . .145.0 5.5 187.4 104.8
Johnson Matthey . .1880.0 20.0 2119.0 1523.0
Victrex . . . . . . . . . . .1154.0 -26.0 1590.0 1025.0
YuIe Catto & Co . . . . .158.1 -0.8 253.0 148.0
C/$ 1.3537 0.0082
C/ 0.8546 0.0021
C/ 104.27 0.7607
/C 1.1700 0.0027
/$ 1.5836 0.0063
/ 121.99 0.6285
FTSE 100
5517.44
1.60
FTSE 250
10260.11
87.65
FTSE ALLSHARE
2840.36
4.00
DOW
12096.16
17.18
NASDAQ
2686.20
28.98
S&P 500
1257.81
6.03
RPC Group . . . . . . . .351.0 -0.1 384.8 215.4
Smiths Group . . . . . .955.5 1.0 1429.0 907.5
Brown (N.) Group . . .261.0 -1.4 311.2 251.1
Carpetright . . . . . . . . .440.0 -7.0 835.5 432.0
Debenhams . . . . . . . . .64.7 -0.4 75.7 51.2
Dignity . . . . . . . . . . . .843.0 17.0 854.5 644.0
Dixons RetaiI . . . . . . .11.3 -0.6 26.6 10.6
DuneImGroup . . . . . .493.5 -7.5 550.0 383.9
HaIfords Group . . . . .342.3 2.3 459.7 268.6
Home RetaiI Group . . .78.6 -2.5 235.0 78.2
Inchcape . . . . . . . . . .328.5 -1.6 425.4 268.1
JD Sports Fashion . .822.5 -7.5 1030.0 780.0
Kesa EIectricaIs . . . . .88.7 -1.3 174.0 80.0
Kingfisher . . . . . . . . .248.2 -4.6 287.1 217.0
Marks & Spencer G . .332.8 1.9 403.9 301.8
Mothercare . . . . . . . .160.0 0.0 627.5 151.0
Next . . . . . . . . . . . . .2807.0 6.0 2807.0 1868.0
Sports Direct Int . . . .238.4 -0.6 266.2 127.0
WH Smith . . . . . . . . . .527.5 3.0 558.0 433.8
Smith & Nephew . . . .592.5 20.0 742.0 521.0
Synergy HeaIth . . . . .861.0 11.5 981.0 799.0
Barratt DeveIopme . . .89.7 -3.1 119.0 67.5
BeIIway . . . . . . . . . . . .718.5 5.0 753.5 511.0
BaIfour Beatty . . . . . .234.1 -1.9 357.3 228.6
GaIIiford Try . . . . . . . .480.5 -7.0 530.0 276.5
Kier Group . . . . . . . .1387.0 -10.0 1448.0 1097.0
Drax Group . . . . . . . .573.5 19.5 584.0 353.6
SSE . . . . . . . . . . . . . .1318.0 1.0 1423.0 1111.0
Domino Printing S . .522.5 -17.5 705.0 434.3
HaIma . . . . . . . . . . . . .336.3 -3.7 429.6 306.3
Laird . . . . . . . . . . . . . .145.0 -2.1 207.0 127.9
Morgan CrucibIe C . .269.5 -2.4 357.1 222.3
Oxford Instrument . .960.0 117.5 1010.0 495.0
Renishaw . . . . . . . . . .901.0 -49.5 1886.0 862.0
Spectris . . . . . . . . . .1285.0 -9.0 1679.0 1039.0
Aberforth SmaIIer . . .529.0 -3.0 714.0 508.5
AIIiance Trust . . . . . .338.2 -1.8 392.7 310.2
Bankers Inv Trust . . .378.4 -5.3 428.0 346.5
BH GIobaI Ltd. GB .1205.0 5.0 1213.0 1058.0
BH GIobaI Ltd. US . . . .11.9 -0.1 12.2 10.4
BH Macro Ltd. EUR . . .20.1 0.2 20.2 15.8
BH Macro Ltd. GBP 2060.0 -1.0 2084.0 1630.0
BH Macro Ltd. USD . . .20.0 0.1 20.1 15.8
BIackRock WorId M .650.0 -7.5 815.5 574.5
BIueCrest AIIBIue . . .167.1 -0.6 176.2 162.4
British Assets Tr . . . .118.0 -0.9 140.5 109.0
British Empire Se . . .440.1 -13.4 533.0 409.9
CaIedonia Investm .1470.0 -28.0 1928.0 1459.0
City of London In . . .279.0 0.0 306.9 257.0
Dexion AbsoIute L . .134.8 -0.6 151.0 130.0
Edinburgh Dragon . .219.6 -1.4 262.1 201.4
Edinburgh Inv Tru . . .469.2 0.4 492.2 414.9
EIectra Private E . . .1450.0 -12.0 1755.0 1287.0
F&C Inv Trust . . . . . .288.5 -1.1 327.9 261.5
FideIity China Sp . . . . .78.9 -0.1 124.0 70.0
FideIity European . . .990.0 -6.5 1287.0 912.0
HeraId Inv Trust . . . . .450.0 -6.4 545.5 419.0
HICL Infrastructu . . . .118.4 -0.2 121.3 112.7
Impax Environment . .95.3 0.8 130.5 88.5
JPMorgan American .817.5 -8.5 916.0 721.5
JPMorgan Asian In . .191.1 -2.9 250.8 170.1
JPMorgan Emerging .519.0 -2.5 639.0 480.1
JPMorgan European .690.0 -7.0 983.5 683.0
JPMorgan Indian I . . .352.3 -5.1 492.0 350.0
JPMorgan Russian .505.5 -4.5 755.0 415.1
Law Debenture Cor . .351.0 -5.7 385.0 309.8
MercantiIe Inv Tr . . . .905.0 -3.0 1137.0 856.5
Merchants Trust . . . .365.0 1.0 431.8 347.0
Monks Inv Trust . . . .315.4 -2.4 367.9 298.1
Murray Income Tru . .610.5 0.5 673.0 568.0
Murray Internatio . . .895.0 -10.5 991.5 818.5
PerpetuaI Income . . .250.3 0.3 276.0 234.8
PersonaI Assets T .33820.0 -20.0 33850.030210.0
PoIar Cap TechnoI . .343.0 -1.5 391.2 299.5
RIT CapitaI Partn . . .1330.0 -6.0 1360.0 1131.0
Scottish Inv Trus . . . .449.0 -1.0 524.0 417.0
Scottish Mortgage . .633.0 -7.5 781.0 586.5
SVG CapitaI . . . . . . . .191.5 -0.5 279.8 187.9
TempIe Bar Inv Tr . . .852.5 -3.5 952.0 791.0
TempIeton Emergin .565.0 -3.0 689.5 497.0
TR Property Inv T . . .160.0 -2.1 206.1 150.0
TR Property Inv T . . . .73.8 -0.3 94.0 69.5
Witan Inv Trust . . . . .443.1 -5.9 533.0 401.5
3i Group . . . . . . . . . . .198.0 -3.8 340.0 184.1
3i Infrastructure . . . . .119.6 -0.6 125.2 113.1
Aberdeen Asset Ma .192.6 -1.9 240.0 167.8
Ashmore Group . . . .341.7 0.8 420.0 301.5
Brewin DoIphin Ho . .123.9 -0.6 185.4 113.7
CameIIia . . . . . . . . . .9537.0 162.010950.0 8800.0
CharIes TayIor Co . . .135.0 0.0 185.3 122.0
City of London Gr . . . .64.0 0.0 93.6 63.0
City of London In . . .338.5 -11.4 461.5 321.3
CIose Brothers Gr . . .707.5 -2.5 888.5 656.5
CoIIins Stewart H . . . .54.3 -0.3 90.8 54.0
EvoIution Group . . . . .82.8 0.3 94.0 62.3
F&C Asset Managem .69.8 -0.3 92.9 56.1
Hargreaves Lansdo .501.0 -1.0 646.5 402.5
HeIphire Group . . . . . . .2.5 -0.3 19.3 2.2
Henderson Group . . .114.3 -1.8 173.1 95.1
Highway CapitaI . . . . .12.0 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .367.0 3.9 570.5 350.4
IG Group HoIdings . .444.6 -0.6 528.0 393.6
Intermediate Capi . . .224.0 -3.5 360.3 197.9
InternationaI Per . . . .213.0 -7.0 388.8 196.5
InternationaI Pub . . . .116.8 0.0 118.3 108.6
Investec . . . . . . . . . . .366.3 -0.9 538.0 331.8
IP Group . . . . . . . . . . . .72.8 -2.5 76.5 29.9
Jupiter Fund Mana . .210.8 -5.9 337.3 184.9
Liontrust Asset M . . . .77.8 2.3 94.3 57.9
LMS CapitaI . . . . . . . . .59.0 -0.5 64.8 44.8
London Finance & . . .23.5 0.5 23.5 16.5
London Stock Exch .830.0 -33.5 1076.0 717.0
Lonrho . . . . . . . . . . . . .12.8 -0.8 19.8 11.8
Man Group . . . . . . . . .144.4 -1.7 311.0 136.0
Paragon Group Of . .176.1 -2.8 206.1 134.6
Provident Financi . .1050.0 30.0 1124.0 738.0
Rathbone Brothers .1118.0 -9.0 1257.0 972.0
Record . . . . . . . . . . . . .15.8 -0.9 43.0 15.8
RSM Tenon Group . . .23.0 1.0 66.3 20.3
Schroders . . . . . . . .1364.0 2.0 1922.0 1183.0
Schroders (Non-Vo .1139.0 -1.0 1554.0 970.0
TuIIett Prebon . . . . . .317.4 1.4 428.6 305.5
WaIker Crips Grou . . .46.0 0.0 51.5 44.1
BT Group . . . . . . . . . .192.3 0.4 204.1 161.0
CabIe & WireIess . . . .38.4 0.0 52.9 31.3
CabIe & WireIess . . . .22.3 -7.9 76.9 22.3
COLT Group SA . . . . .97.7 -3.4 156.2 91.6
KCOM Group . . . . . . . .72.5 -0.5 84.0 49.0
TaIkTaIk TeIecom . . .129.0 0.5 168.3 119.8
TeIecomPIus . . . . . . .725.0 -2.0 750.5 385.0
Booker Group . . . . . . .76.1 -1.2 80.0 54.5
Greggs . . . . . . . . . . . .509.5 0.5 550.5 429.1
Morrison (Wm) Sup .320.0 2.2 321.1 262.7
Ocado Group . . . . . . . .84.6 -1.4 285.0 84.5
Sainsbury (J) . . . . . . .305.4 1.4 391.5 263.5
Tesco . . . . . . . . . . . . .405.0 2.3 439.0 356.3
Associated Britis . . .1127.0 6.0 1182.0 940.0
Cranswick . . . . . . . . .697.0 -13.0 883.5 588.5
Dairy Crest Group . . .339.9 -0.1 424.9 325.0
Devro . . . . . . . . . . . . .263.0 3.1 296.9 223.5
Premier Foods . . . . . . . .4.9 -0.9 35.1 3.3
Tate & LyIe . . . . . . . . .684.0 12.5 686.5 510.0
UniIever . . . . . . . . . .2059.0 -3.0 2114.0 1777.0
Mondi . . . . . . . . . . . . .449.2 -7.2 664.0 448.1
Centrica . . . . . . . . . . .302.0 -1.7 345.8 282.6
InternationaI Pow . . .336.1 2.0 448.6 279.4
NationaI Grid . . . . . . .629.0 4.5 649.5 530.0
Pennon Group . . . . . .717.0 5.0 737.5 584.5
Severn Trent . . . . . .1600.0 17.0 1615.0 1368.0
United UtiIities . . . . .637.0 8.0 640.6 543.5
Cookson Group . . . . .472.0 -1.6 724.5 395.8
DS Smith . . . . . . . . . .198.1 -4.8 266.2 164.4
Rexam . . . . . . . . . . . .331.0 -1.2 400.0 299.8
Price Chg High Low
BerkeIey Group Ho .1237.0 -16.0 1299.0 789.5
Bovis Homes Group .449.3 -2.4 485.5 326.5
Persimmon . . . . . . . .493.2 1.6 518.5 338.4
Reckitt Benckiser . .3229.0 7.0 3648.0 3015.0
Redrow . . . . . . . . . . . .110.4 0.4 139.0 98.4
TayIor Wimpey . . . . . . .38.1 -0.2 43.3 23.8
Bodycote . . . . . . . . . .270.6 -5.8 397.7 225.6
Charter Internati . . . .930.0 9.5 931.0 538.5
Fenner . . . . . . . . . . . .368.6 3.8 422.5 273.7
IMI . . . . . . . . . . . . . . . .783.0 -10.0 1119.0 636.5
MeIrose . . . . . . . . . . .344.6 -4.4 365.4 265.7
Northgate . . . . . . . . . .243.3 -6.7 346.7 202.0
Rotork . . . . . . . . . . .1708.0 -10.0 1858.0 1501.0
Spirax-Sarco Engi . .1845.0 -24.0 2063.0 1649.0
Weir Group . . . . . . . .1911.0 6.0 2218.0 1375.0
Ferrexpo . . . . . . . . . . .303.2 -9.5 499.0 238.7
TaIvivaara Mining . . .200.5 -5.0 622.0 193.6
BBAAviation . . . . . . .176.7 -5.3 240.8 156.0
Stobart Group Ltd . . .118.8 -0.7 163.6 117.5
AdmiraI Group . . . . . .830.0 -2.5 1754.0 804.0
AmIin . . . . . . . . . . . . .292.9 -4.8 427.0 270.6
Huntsworth . . . . . . . . .58.0 -0.5 85.0 55.3
Informa . . . . . . . . . . . .360.6 -7.8 461.1 313.9
ITE Group . . . . . . . . . .190.0 -4.4 258.2 157.7
ITV . . . . . . . . . . . . . . . . .65.5 -0.3 93.5 51.7
Johnston Press . . . . . . .5.4 0.1 12.8 4.1
MecomGroup . . . . . .149.0 -4.8 310.0 134.5
Moneysupermarket. .108.1 -1.3 120.4 75.7
Pearson . . . . . . . . . .1119.0 14.0 1207.0 926.0
PerformGroup . . . . .190.0 -5.0 234.5 150.0
Reed EIsevier . . . . . .537.5 -3.0 590.5 461.3
Rightmove . . . . . . . .1368.0 -27.0 1408.0 736.5
STV Group . . . . . . . . .102.0 -3.0 168.0 90.3
Tarsus Group . . . . . .130.5 0.0 165.0 114.0
Trinity Mirror . . . . . . . .51.5 -1.8 93.0 37.5
UBM . . . . . . . . . . . . . .488.4 -6.7 725.0 416.0
UTV Media . . . . . . . . .112.5 -1.4 150.0 101.0
WiImington Group . . .85.3 -0.8 183.0 82.5
WPP . . . . . . . . . . . . . .656.0 -6.0 846.5 578.0
YeII Group . . . . . . . . . . .5.6 2.1 14.8 3.4
African Barrick G . . .553.0 -5.0 618.5 393.5
AIIied GoId Minin . . .146.4 -5.1 281.3 34.4
AngIo American . . .2453.5 5.5 3437.0 2138.5
AngIo Pacific Gro . . .277.5 -0.8 369.3 237.9
Antofagasta . . . . . . .1166.0 -9.0 1634.0 900.5
Aquarius PIatinum . .180.0 -2.4 419.0 159.9
BeazIey . . . . . . . . . . . .129.1 0.3 139.2 109.6
CatIin Group Ltd. . . .397.5 4.7 421.4 331.5
Hiscox Ltd. . . . . . . . . .385.8 -3.4 424.7 340.5
Jardine LIoyd Tho . . .707.0 2.0 764.5 571.5
Lancashire HoIdin . . .767.0 5.0 774.5 529.0
RSA Insurance Gro . .109.7 -0.4 143.5 105.3
Aviva . . . . . . . . . . . . . .312.1 -2.9 477.9 275.3
LegaI & GeneraI G . . .106.5 0.8 123.8 89.8
OId MutuaI . . . . . . . . .110.3 0.5 144.8 98.1
Phoenix Group HoI . .469.7 -8.3 688.0 451.1
PrudentiaI . . . . . . . . .629.5 5.5 777.0 509.0
ResoIution Ltd. . . . . .262.1 -1.2 316.1 211.3
St James's PIace . . . .333.8 -3.9 376.0 236.2
Standard Life . . . . . . .204.9 1.2 244.7 172.0
4Imprint Group . . . . .220.0 -5.0 295.0 200.0
Aegis Group . . . . . . .135.1 -2.9 158.5 115.7
BIoomsbury PubIis . . .96.4 -1.6 138.0 95.0
British Sky Broad . . .752.5 9.5 850.0 618.5
Centaur Media . . . . . . .37.0 2.4 73.0 34.6
Chime Communicati .188.3 -7.5 298.5 173.0
Creston . . . . . . . . . . . .81.4 -3.4 121.0 72.0
DaiIy MaiI and Ge . . .424.5 -6.5 594.5 343.4
Euromoney Institu . .690.0 0.0 736.0 522.5
Future . . . . . . . . . . . . . .10.5 0.0 30.0 9.8
Haynes PubIishing . .225.0 0.0 257.0 203.5
BHP BiIIiton . . . . . . .1961.0 -9.5 2631.5 1667.0
Centamin Egypt Lt . .106.0 -1.2 186.7 89.7
Eurasian NaturaI . . .679.5 3.0 1125.0 522.0
FresniIIo . . . . . . . . . .1867.0 55.0 2150.0 1296.0
GemDiamonds Ltd. .230.4 -3.7 306.0 179.8
GIencore Internat . . .412.7 -15.9 531.1 348.0
HochschiId Mining . .438.0 -8.0 680.0 397.0
Kazakhmys . . . . . . . .909.0 -2.5 1671.0 730.0
Kenmare Resources . .38.1 -1.4 59.9 23.4
Lonmin . . . . . . . . . . .1044.0 -29.0 1983.0 974.5
New WorId Resourc .453.0 -6.4 1060.0 410.5
PetropavIovsk . . . . . .727.0 -15.5 1165.0 543.5
RandgoId Resource 7450.0 50.0 7555.0 4425.0
Rio Tinto . . . . . . . . .3458.0 35.0 4712.0 2712.5
Vedanta Resources .1108.0 -12.0 2559.0 948.0
Xstrata . . . . . . . . . . . .998.3 -13.7 1550.0 764.0
Inmarsat . . . . . . . . . . .457.9 -3.8 719.5 389.7
Vodafone Group . . . .180.6 -2.1 183.2 155.1
Genesis Emerging . .457.5 1.0 568.0 430.0
Afren . . . . . . . . . . . . . . .92.0 5.6 171.2 73.6
BG Group . . . . . . . . .1367.5 5.0 1564.5 1144.0
BP . . . . . . . . . . . . . . . .457.2 -1.7 509.0 363.2
Cairn Energy . . . . . . .288.0 -2.4 469.7 261.4
EnQuest . . . . . . . . . . .101.5 -0.9 158.5 86.6
Essar Energy . . . . . .273.5 -13.5 589.5 235.1
ExiIIon Energy . . . . . .320.0 21.6 469.7 184.2
Heritage OiI . . . . . . . .192.0 -6.0 486.0 190.0
Ophir Energy . . . . . . .250.0 0.0 299.0 184.5
Premier OiI . . . . . . . . .364.1 4.5 535.0 310.0
RoyaI Dutch SheII . .2210.0 -12.0 2326.5 1883.5
RoyaI Dutch SheII . .2288.0 -8.5 2336.0 1890.5
SaIamander Energy .210.5 -2.5 317.6 182.3
Soco Internationa . . .314.3 0.9 400.0 279.8
TuIIow OiI . . . . . . . . .1362.0 15.0 1493.0 945.5
Amec . . . . . . . . . . . . .921.5 -2.5 1251.0 740.5
Hunting . . . . . . . . . . .671.5 -4.0 817.0 530.0
Kentz Corporation . .475.0 4.0 508.0 275.5
LampreII . . . . . . . . . . .254.2 -5.6 395.2 220.7
Petrofac Ltd. . . . . . .1396.0 -5.0 1685.0 1108.0
Wood Group (John) .642.5 -8.5 715.8 469.9
Burberry Group . . . .1347.0 -74.0 1600.0 996.0
PZ Cussons . . . . . . . .369.0 -3.0 409.0 320.5
Supergroup . . . . . . . .657.0 -2.0 1820.0 591.0
AstraZeneca . . . . . .2905.0 6.0 3194.0 2543.5
BTG . . . . . . . . . . . . . .296.2 4.5 309.7 210.1
Genus . . . . . . . . . . . .1015.0 -7.0 1111.0 800.0
GIaxoSmithKIine . . .1405.5 11.5 1413.0 1127.5
Hikma Pharmaceuti .643.0 4.0 900.0 555.5
Shire PIc . . . . . . . . . .2034.0 19.0 2136.0 1481.0
CapitaI & Countie . . .174.6 -3.9 203.7 142.5
Daejan HoIdings . . .2600.0 -75.0 2954.0 2282.0
F&C CommerciaI Pr .103.5 -0.2 108.0 88.0
Grainger . . . . . . . . . . . .93.4 -2.6 133.2 77.3
London & Stamford .114.3 -1.7 140.0 111.6
SaviIIs . . . . . . . . . . . . .298.0 -3.7 427.1 256.2
UK CommerciaI Pro . .75.9 -0.2 85.5 70.4
Unite Group . . . . . . . .163.9 -3.2 224.1 152.9
Big YeIIow Group . . .255.0 -6.3 352.2 234.2
British Land Co . . . . .497.4 -6.1 629.5 452.0
CapitaI Shopping . . .312.0 -0.3 424.8 296.4
Derwent London . . .1666.0 0.0 1880.0 1400.0
Great PortIand Es . . .356.4 -5.1 445.0 317.4
Hammerson . . . . . . . .391.7 -2.0 490.9 353.0
Hansteen HoIdings . . .77.0 -1.0 89.5 70.0
Land Securities G . . .689.5 3.0 885.0 616.0
SEGRO . . . . . . . . . . . .228.9 -4.5 331.3 210.1
Shaftesbury . . . . . . . .499.9 -3.6 539.0 431.7
Aveva Group . . . . . .1546.0 -76.0 1799.0 1298.0
Computacenter . . . . .369.1 -7.2 490.0 354.8
Fidessa Group . . . . .1683.0 -4.0 2109.0 1409.0
Invensys . . . . . . . . . . .210.6 -2.7 364.3 199.6
Logica . . . . . . . . . . . . .79.1 0.3 147.2 73.9
Micro Focus Inter . . .370.0 20.9 426.2 239.4
Misys . . . . . . . . . . . . .278.4 -13.2 420.2 214.9
Sage Group . . . . . . . .278.5 1.4 302.0 231.7
SDL . . . . . . . . . . . . . . .642.5 7.0 711.5 555.0
TeIecity Group . . . . . .611.0 -2.0 620.5 430.0
Aggreko . . . . . . . . . .1780.0 -9.0 2034.0 1394.5
Ashtead Group . . . . .168.3 1.9 207.9 99.4
Atkins (WS) . . . . . . . .539.0 1.0 820.0 490.2
Babcock Internati . . .687.0 -8.5 733.0 513.5
Berendsen . . . . . . . . .434.3 -3.2 568.0 391.3
BunzI . . . . . . . . . . . . .805.5 -0.5 820.5 676.5
Cape . . . . . . . . . . . . . .350.8 -4.1 591.5 328.0
Capita Group . . . . . . .674.0 12.0 786.5 635.5
CariIIion . . . . . . . . . . .316.1 -4.8 403.2 298.8
De La Rue . . . . . . . . .898.5 -8.0 914.0 549.5
DipIoma . . . . . . . . . . .312.9 -5.1 414.3 263.3
EIectrocomponents .209.2 1.3 294.9 182.2
Experian . . . . . . . . . . .828.5 0.0 833.5 665.0
FiItrona PLC . . . . . . . .380.8 -3.9 397.1 227.5
G4S . . . . . . . . . . . . . . .246.9 -1.2 291.0 219.9
Hays . . . . . . . . . . . . . . .74.5 -0.7 133.6 66.6
Homeserve . . . . . . . .266.5 -0.5 532.0 218.5
Howden Joinery Gr . .108.0 0.1 127.5 90.0
Interserve . . . . . . . . . .317.6 -3.6 341.3 190.8
Intertek Group . . . . .1886.0 -36.0 2148.0 1715.0
MichaeI Page Inte . . .364.2 -2.5 567.0 338.7
Mitie Group . . . . . . . .241.1 -6.7 257.5 195.6
Premier FarneII . . . . .169.4 -2.1 308.8 144.5
Regus . . . . . . . . . . . . . .82.5 -2.7 119.0 64.0
RentokiI InitiaI . . . . . . .66.6 -0.4 104.9 64.8
RPS Group . . . . . . . . .183.5 -5.7 253.0 156.6
Serco Group . . . . . . .495.0 -1.3 618.5 490.9
Shanks Group . . . . . .111.1 -1.9 130.9 103.0
SIG . . . . . . . . . . . . . . . .88.5 -4.2 153.5 83.8
SThree . . . . . . . . . . . .228.0 -2.0 447.6 213.2
Travis Perkins . . . . . .833.0 -7.0 1127.0 715.0
WoIseIey . . . . . . . . .1866.0 -13.0 2261.0 1404.0
ARM HoIdings . . . . . .627.0 -5.0 651.0 351.6
CSR . . . . . . . . . . . . . .182.0 -5.2 447.0 170.9
Imagination Techn . .468.8 -4.5 502.0 296.9
Pace . . . . . . . . . . . . . . .62.1 -1.0 231.8 60.3
Spirent Communica .124.0 -1.8 160.3 109.5
British American . .2943.0 49.5 2953.0 2282.5
ImperiaI Tobacco . .2331.0 34.0 2345.0 1784.0
Betfair Group . . . . . . .744.0 -4.0 1490.0 567.0
Bwin.party Digita . . .123.0 -2.6 257.6 100.6
CarnivaI . . . . . . . . . .2156.0 -29.0 3153.0 1742.0
Compass Group . . . .561.5 1.0 612.0 512.5
Domino's Pizza UK . .432.4 -6.2 586.0 377.0
easyJet . . . . . . . . . . . .356.4 -9.6 474.0 301.0
FirstGroup . . . . . . . . .340.0 0.6 412.6 301.8
Go-Ahead Group . . .1305.0 -13.0 1598.0 1203.0
Greene King . . . . . . .453.1 0.5 518.0 410.0
InterContinentaI . . .1072.0 1.0 1435.0 955.0
InternationaI Con . . .145.2 -2.4 305.0 141.6
JD Wetherspoon . . . .426.2 -3.1 468.3 380.5
Ladbrokes . . . . . . . . .134.1 -0.8 155.3 114.0
Marston's . . . . . . . . . . .92.3 -1.3 117.1 84.6
MiIIennium& Copt . .405.0 4.5 600.5 375.6
MitcheIIs & ButIe . . . .226.0 -0.6 361.0 216.4
NationaI Express . . .223.0 -1.0 270.2 218.3
Rank Group . . . . . . . .145.0 0.1 153.7 109.5
Restaurant Group . . .290.0 0.4 335.0 254.9
Stagecoach Group . .252.3 -1.9 272.4 200.0
Thomas Cook Group .42.9 -2.4 204.8 33.7
TUI TraveI . . . . . . . . . .159.8 -4.3 271.9 137.2
Whitbread . . . . . . . .1618.0 -10.0 1887.0 1409.0
WiIIiamHiII . . . . . . . . .211.5 -0.7 244.1 155.5
Abcam . . . . . . . . . . . .358.0 -4.0 460.0 307.0
AIbemarIe & Bond . .324.0 1.0 400.1 272.0
Amerisur Resource . .12.8 0.0 29.0 9.5
Andor TechnoIogy . .495.0 -1.5 685.0 370.0
ArchipeIago Resou . . .65.0 0.8 79.0 43.3
ASOS . . . . . . . . . . . .1431.0 5.0 2468.0 1234.0
AureIian OiI & Ga . . . .24.0 -2.0 92.0 16.0
Avanti Communicat .289.3 -5.0 735.0 248.5
Avocet Mining . . . . . .230.0 -3.5 286.8 177.5
BIinkx . . . . . . . . . . . . .103.5 -1.0 158.0 70.5
Borders & Souther . . .64.3 -1.8 72.3 43.5
BowLeven . . . . . . . . . .95.0 -4.0 398.0 74.5
Brooks MacdonaId 1232.5 -15.0 1372.5 940.0
Cove Energy . . . . . . . .86.3 0.0 112.8 61.0
Daisy Group . . . . . . .104.4 5.4 127.0 88.0
EMIS Group . . . . . . . .503.0 -20.0 580.0 406.0
Encore OiI . . . . . . . . . .75.5 0.8 151.5 40.8
Faroe PetroIeum . . . .148.8 -2.8 218.3 130.0
GuIfsands PetroIe . . .188.0 -0.3 401.5 142.5
GWPharmaceuticaI . .95.5 4.3 130.0 87.0
H&T Group . . . . . . . . .310.0 -5.0 395.0 277.0
Hamworthy . . . . . . . .678.0 8.0 705.0 373.8
Hargreaves Servic .1152.0 12.0 1180.0 690.0
HeaIthcare Locums . . . .3.7 -0.0 3.9 3.4
Immunodiagnostic . .890.0 -5.0 1218.0 768.5
ImpeIIamGroup . . . .270.8 3.1 387.5 180.5
James HaIstead . . . . .445.0 5.0 495.0 357.5
KaIahari MineraIs . . .223.8 1.0 301.0 186.8
London Mining . . . . .278.5 -11.0 436.5 270.5
Lupus CapitaI . . . . . .102.0 0.0 150.0 86.0
M. P. Evans Group . .390.0 -12.0 500.5 371.0
Majestic Wine . . . . . .390.0 -10.0 510.0 371.0
May Gurney Integr . .288.0 2.3 302.0 211.0
Monitise . . . . . . . . . . . .37.3 -0.3 40.0 18.5
MuIberry Group . . . .1515.0 -5.0 1920.0 535.0
Nanoco Group . . . . . . .50.0 -3.3 111.5 38.0
NauticaI PetroIeu . . .270.0 -2.0 547.0 223.5
NichoIs . . . . . . . . . . . .525.0 -9.8 579.0 410.0
Numis Corporation . . .92.0 0.0 137.8 89.0
Pan African Resou . . .14.0 -0.3 14.5 9.5
Patagonia GoId . . . . . .53.0 -2.5 70.0 28.0
Prezzo . . . . . . . . . . . . .56.4 -1.9 71.5 53.3
Pursuit Dynamics . . .190.8 -5.3 700.0 160.5
Rockhopper ExpIor .264.8 12.8 386.0 141.0
RWS HoIdings . . . . . .435.0 5.0 479.8 266.5
Songbird Estates . . .117.0 -1.4 160.3 110.3
VaIiant PetroIeum . . .424.8 -4.3 672.0 410.0
Young & Co's Brew . .642.0 1.8 712.0 542.5
Oxford Instruments .960.0 14.0
ExiIIon Energy . . . . . .320.0 7.2
Afren . . . . . . . . . . . . . .92.0 6.4
Micro Focus Intern . .370.0 6.0
EIementis . . . . . . . . . .145.0 3.9
Drax Group . . . . . . . .573.5 3.5
Smith & Nephew . . . .592.5 3.5
FresniIIo . . . . . . . . . .1867.0 3.0
Provident Financia .1050.0 2.9
Britvic . . . . . . . . . . . . .337.9 2.4
CabIe & WireIess W . .22.3 -26.1
Premier Foods . . . . . . . .4.9 -15.0
Burberry Group . . . .1347.0 -5.2
Renishaw . . . . . . . . . .901.0 -5.2
Thomas Cook Group .42.9 -5.2
Dixons RetaiI . . . . . . .11.3 -4.9
Essar Energy . . . . . .273.5 -4.7
Aveva Group . . . . . .1546.0 -4.7
SIG . . . . . . . . . . . . . . . .88.5 -4.5
Misys . . . . . . . . . . . . .278.4 -4.5
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
CONSTRUCTION & MATERIALS
ELECTRICITY
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EQUITY INVESTMENT INSTRUM.
FINANCIAL SERVICES
FIXED LINE TELECOMS
FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. & EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM 50
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AUTOMOBILES & PARTS
BANKS
CHEMICALS
BEVERAGES
GENERAL INDUSTRIALS
MOBILE TELECOMS
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
MINING
NONEQUITY INVESTM. COMM.
Tsy 3.250 11 . . . . .100.03 -0.14 102.8 100.0
Tsy 5.250 12 . . . .102.64 -0.03 106.9 102.6
Tsy 9.000 12 . . . .106.75 0.61 113.7 105.8
Tsy 5.000 12 . . . .101.37 -0.05 105.6 101.3
Tsy 4.500 13 . . . .105.23 -0.01 108.1 105.2
Tsy 2.500 13 . . . .284.51 -0.13 287.7 277.6
Tsy 8.000 13 . . . . .113.86 -0.01 119.5 113.8
Tsy 5.000 14 . . . . .112.21 -0.03 112.9 109.2
Tsy 7.750 15 . . . .101.05 -0.35 108.1 100.8
Tsy 4.750 15 . . . . .114.82 0.10 114.9 108.6
Tsy 8.000 15 . . . .128.43 0.07 129.2 123.7
Tsy 4.000 16 . . . . .113.81 0.18 113.9 104.9
Tsy 2.500 16 . . . .342.61 -0.02 343.1 310.2
Tsy 8.750 17 . . . .140.91 -0.09 141.9 132.9
Tsy 12.000 17 . . .123.43 0.00 132.3 122.5
Tsy 1.250 17 . . . . .115.33 0.00 115.7 106.7
Tsy 5.000 18 . . . .121.54 0.26 121.7 109.7
Tsy 4.500 19 . . . . .119.64 0.34 119.6 105.4
Tsy 3.750 19 . . . . .114.32 0.37 114.4 99.4
Tsy 2.500 20 . . . .359.42 0.07 360.3 312.4
Tsy 4.750 20 . . . .122.21 0.44 122.3 106.6
Tsy 8.000 21 . . . .151.20 0.42 151.8 133.8
Tsy 1.875 22 . . . .124.83 0.10 125.4 111.3
Tsy 4.000 22 . . . . .116.74 0.50 116.9 99.0
Tsy 2.500 24 . . . .319.83 0.03 321.8 273.5
Tsy 5.000 25 . . . .128.71 0.61 128.8 107.4
Tsy 1.250 27 . . . . .119.82 0.11 121.0 104.6
Tsy 4.250 27 . . . .120.39 0.84 120.4 97.9
Tsy 6.000 28 . . . .145.32 0.84 145.3 119.5
Tsy 4.750 30 . . . .128.01 0.92 128.0 103.0
Tsy 4.125 30 . . . .305.88 0.09 306.8 261.2
Tsy 4.250 32 . . . .120.51 1.05 120.5 96.0
Tsy 4.250 36 . . . . .121.11 1.27 121.1 95.0
Tsy 4.750 38 . . . .131.00 1.33 131.1 102.8
Tsy 4.500 42 . . . .127.64 1.44 127.6 98.9
% %
Wealth Management
Business Features| Accounting
33
Accountants can be counted upon
to face challenge of climate change
L
ATER this month, thousands of cli-
mate change experts, government
negotiators, campaigners, and busi-
ness people will be gathering in
Durban, South Africa for the seventeenth
annual meeting of the signatories to the
UN Framework Convention for Climate
Change. Or, more simply, COP17.
The ultimate objective of each COP
(Conference of the Parties) is to reach an
international agreement on limiting the
human impact on the earths climate.
Some previous meetings have succeed-
ed in making quite a splash: COP3 in 1997
gave us the Kyoto Protocol, the existing
internationally binding agreement on
emissions reductions, while COP15 in
Copenhagen received wall-to-wall media
coverage as world leaders had their last
chance to agree a replacement for Kyoto.
As you may well remember, no such
replacement was agreed.
Despite the disappointments though,
each COP is still an important event and
they certainly deserve attention here in
the business pages.
A new international agreement on
emissions reductions is unlikely for the
foreseeable future, which is leaving a
large hole in policy development and
delivery. This hole is being filled by busi-
nesses and individual countries and
regions, and it is creating a role for the
accounting profession who will be needed
to provide the monitoring, reporting, and
verification of a range of separate efforts.
GETTING TO DURBAN
At this point, some background is neces-
sary: the Kyoto Protocol may have been a
breakthrough the only binding interna-
tional agreement on emissions reductions
but it is far from perfect and has left
something of a sticky political legacy.
Kyoto only covered (some) developed
economies, and the resulting argument
about whether or not developing
economies should sign a Kyoto-replace-
ment has stymied discussions, with devel-
oping and developed economies failing to
see eye-to-eye.
The COP process has also been overly-
focused on state-based approaches and
has failed to provide room for the private
sector in its policy and funding frame-
works, such as the Green Climate Fund
(GCF).
For David Hone, a senior climate
change adviser for the CO2 Group at Shell,
this is a problem: The amount of money
in the GCF [pledged by governments]
even if it reached the $100bn a year it
aspires to by 2020 isnt remotely
enough, given the scale of the big energy
projects that are needed over the next 40
years.
EACH TO HIS OWN
Countries and businesses are getting on
with the job themselves in the mean time.
China, India, and others outside the Kyoto
process still conduct their own emissions
reductions activities, and some have quite
impressive targets in place too.
Similarly, many developed economies,
including the UK, have ambitious targets
for emissions reduction beyond the scope
of Kyoto.
Businesses meanwhile may have a spot-
ty record 63 per cent of businesses do
not monitor their energy consumption
and 81 per cent do not monitor their car-
bon footprint but its here that the inno-
vation lies, and the situation is improving.
Businesses are beginning to recognise
that using sustainable supply chains or
increasing their energy efficiency will, in
the long run, save money and give an edge
over companies that carry on with busi-
ness as usual.
But, voluntary commitments are prob-
lematic. As South Koreas Carbon
Disclosure Project vice-chair Karl Yang
points out: If a country exaggerates its
emissions reductions, they can meet their
commitment without any effort; but who
will guarantee that these reductions are
real? On top of this, some states are noto-
riously sensitive about sharing emissions
data with external agencies.
This bottom-up approach may be the
best that can be done at present, and it
may even build the confidence necessary
for a comprehensive agreement in future.
Even so, any approach to reducing emis-
sions wont work without a capacity for
objective mechanisms for the measure-
ment, reporting, and verification of differ-
ent parties actions. Enter the accountant.
ACCOUNTANTS AND CLIMATE CHANGE
Without the comparability provided by
measurement, reporting, and verifica-
tion, climate change mitigation efforts
lack credibility. Luckily, these are three
disciplines that fall squarely within the
remit of accountants.
Nick Robins, head of the climate
change centre of excellence at HSBC, says:
Accountants will play a much bigger role
in the future, but already they are now
auditing and assuring broad climate per-
formance of companies and evaluating
the ways in which companies are address-
ing the various risks and opportunities
that fall out of climate change.
That accountants have the potential to
play a huge role isnt overly contentious,
but questions remain about the current
contribution of the profession. Alan
McGill, a partner at PwCs sustainability
and climate change practice, argues: The
accountancy profession must raise its
game accountants need to understand
that climate change information is going
to become critical to an organisation
going forward, and accountants need to
be at the forefront of understanding the
implications of climate change and its
role vis--vis business success. He adds:
Accountants will have to turn into chief
information officers: collecting both
financial and non-financial information
and assessing not only if the organisation
can deliver financial returns, but whether
those financial returns are sustainable
and can be repeated year after year.
Its an evolution rather than revolution
thats needed though; the accountancy
profession has shown itself to be relatively
flexible in adapting to emerging issues
over the past decades. New skills and tools
will of course need to be developed, but
much progress has already been made.
There is evidence that accountants are
already being called upon by their busi-
nesses or clients to prepare business cases
for climate change investments or to mon-
itor climate change compliance require-
ments.
DO WE NEED COP?
No chance of a binding agreement, no
room for private finance, squabbling
nations, and slow going: do COPs still mat-
ter? Yes.
No COP is a waste of time. It takes time
to build the trust, develop the compromis-
es, and create the confidence needed for a
global agreement, and each COP makes
its own contribution to this process.
One of the aims of Durban is to extend
oversight mechanisms explicitly to
national-level mitigation activities; head-
line-grabbing? No, but its another impor-
tant step at providing credibility for the
climate change mitigation efforts that we
have in the absence of an international
agreement.
This is a process that private enterprise
and the accountancy profession must play
a role in, providing innovation and experi-
ence. With measurement, reporting,
validity, trust, and private sector funding
and innovation there is a chance of one
day achieving the global, binding emis-
sions reduction agreement that the fight
against climate change so badly needs.
Find more expert opinion in ACCAs upcom-
ing guide: COP17 and Accountants: Where Next?
That
accountants
have the
potential to
play a huge
role isnt
overly
contentious,
but questions
remain about
the current
contribution
of the
profession.
The heat is on for the profession to bear down upon the problem Picture: GETTY
ANDREW LECK
HEAD OF ACCA UK
T
HE run-up to the Square Mile
Salute dinner, an annual banquet
that raises funds for wounded sol-
diers and their families, got off to a
fine start this weekend with the Lord
Mayors Parade through the City. Floats
and parades through the Square Mile
starring a range of causes and supporters,
made for a brilliant spectacle.
Chamberlains, Leadenhall Markets
iconic fish restaurant (also seafood
wholesaler to Londons finest), was in
situ supporting the Lord Mayors Appeal
with a float of its own. It was also cele-
brating becoming the founding restau-
rant partner in the Lord Mayors Appeal
Fit for the Future campaign, which
aims to promote health for all.
The mainly human float, called Square
Mile Salute, included chefs from The
Academy of Culinary Arts, City represen-
tatives and soldiers from The Household
Cavalry, widows and their families.
Mick Flynn, Britains most decorated
Chamberlains of Leadenhall
Market played a starring role in
the weekends festivities
Main picture: Corporal
Major Mick Flynn on
the right holding a
child.
Inset: James Deen of
Albany (part of
Tavistock Group
owned by Joe Lewis)
has his son Bertie
with him, dressed in
Household Cavalry
page boy attire.
Fittingly, 7 Household
Cavalry men are
marching immediately
behind him.
Lord Mayor
Appeals
City fanfare
Lifestyle
34
A
beautiful two-hour train ride from Zurich brings
one to the alpine town of Pontresina, near the
more famous (and more developed) St Moritz.
The Kronenhofs remarkably attractive, traditional
faade takes pride of place in the main street and its
met with suitably matching luxury interiors, splendid
service and all the things that make a stay in a Swiss
luxury hotel truly divine.
Entering the neo-baroque lobby, guests are met with
a pleasing blend of the natural and the tended: the
breath-taking beauty in the distance and the traditional,
finely-hewn hotel style. This is one of the best preserved
grand hotels of the 19th century, and even now none of
that aura has been lost.
In the lobby, the piano is played (well) in the after-
noon, and guests can enjoy tea and cake. A proper, wel-
coming bar, a gourmet restaurant, a newspaper reading
room (with requisite open fire crackling away), and sev-
eral other beautiful public rooms set the tone
for the purpose of this hotel: true, unimped-
ed relaxation.
If said relaxation cant be found sim-
ply by enjoying the splendid panoramic
views of the perpetually snow-capped
Swiss mountains (the Corviglia and
Roseg Valley glaciers in distance), or by
relaxing with a glass of wine and a cigar
at the Pavilion Restaurant (which in winter is
the forecourt to the hotels own ice skating rink),
then it certainly will be found in the Kronenhof Spa.
With panoramic, almost overwhelmingly beautiful
views of the mountains, the Spa and Wellness
suite almost forces you to unwind. With a
large pool, a childrens pool (but dur-
ing our stay, anyway mercifully few
children), steam pool, floating grotto,
salt water grotto, sauna, footbaths,
solarium, fitness room and gym, you
will quickly find your ease.
Treatments are given by an experienced
team of wellness specialists and therapists.
The larger pool in the facility is rounded off by
floor-to-ceiling windows which cradle a view so awe-
inspiring that it fills you with a desire to conquer moun-
tains metaphorical or physical. The spa is a new addi-
tion to the main building, but is has been built with
sufficient sensitivity not to jar with the main hotel.
And so with the relaxing well underway, the explo-
ration of the real mountains begins. In summer, the
hotel will supply lift passes to take the chair lifts, while
in winter guests can ski in the splendour of the
Engadine valley. The hotel can also supply an Audi A3
convertible which will make you feel right at home on a
visit to glitzier St Moritz and it hugs the winding road
down through the mountains, too.
The rooms exhibit traditional Swiss handicraft,
emphasising use of natural timbers. Our room, part of a
1997 development of the hotel which included the addi-
tion of the spa, had a granite bathroom with double
bath, separate shower, separate sitting area and patio.
Blankets for use on the patio are provided so that
guests can enjoy the restorative Swiss mountain air
throughout the year. With 350 km of groomed runs
within easy reach of the hotel, this is a spectacular win-
ter destination.
A stay at the Kronenhof must be accompanied by a
visit to the Kronenstubli, the hotels gourmet restaurant,
where delicate and delightful meals can be enjoyed.
Service at the restaurant is exceptional, as is the cellar.
The food does not disappoint the menu is regularly
rotated and the food stands up very well to comparison
with top-end London cuisine. Like the rooms, its a little
pricey, but some of thats to do with the still-crazily
priced Franc, which is no fault of this first class hotel.
Double rooms from around 500 in high season.
www.kronenhof.com By Alex and Felicity Dean
Wowed by grande dame of the Swiss Alps
soldier and author of Bullet
Magnet (with a forward by Prince
William) was among the walkers.
Others included John Williams of
The Ritz and world-renowned pas-
try chef Clare Clark, both driven
in style by the Royal Automobile
Club in a vintage RAC Austin 7.
Other gastronomic stars on the
Chamberlains float included
Mark Flanagan, the Queenss
chef; Andrew Turner of Wiltons
and Philip Corrick from The RAC.
Anne Donoghue,
Chamberlains MD, said: Its so
important to demonstrate what
positive things City people are
achieving together. We should
also remember that many people
working in the City today have
previously served their country in
the forces. As a restaurant in
Leadenhall Market, this is our
community and many of the peo-
ple concerned are our customers.
Chamberlains is proud to sup-
port those who have sacrificed so
much personally.
Afterwards, Chamberlains
toasted the Lord Mayors Appeal
and the Fit for the Future cam-
paign with a party, at which the
great and the good nibbled cod
and chips and drank Billecart
Salmon Champagne. Nestled in
the heart of the Square Mile,
glasses clinking amid the lively
conversation, guests looked for-
ward to continuing their work for
the Appeal with great optimism.
Square Mile Salute banquet 2011
raised 237,000. The next Square Mile
Salute banquet will be on 22nd
February 2012, led by Raymond Blanc.
Tickets for a table of 10 costs 3,500.
squaremilesalute.com City A.M. are
proud to be media
supporters.
FOOTBALL
MANAGER 12
EVERY GIRLFRIENDS
GREATEST FEAR,
REVIEWED TOMORROW
THE FUTURE GETS GREENER
Seat is continuing to develop two alternative electric and hybrid car
technologies. The prototype Altea XL Electric Ecomotive zero-emis-
sions car and the prototype Leon TwinDrive Ecomotive plug-in hybrid
will begin testing in partnership with Spanish governmental institu-
tions in Catalonia and Madrid. They should be in production by 2015.
CAR TALK BY RYAN BORROFF
AUDI A1 MOVES TOWARDS REALITY
Audi's electric A1 e-tron has just made a big step closer to produc-
tion. A pilot scheme testing a fleet of 20 range-extender electric
A1s has begun in Munich. The scheme is examining customers
usage and expectations of the 148mpg car which is capable of
81mph, 31 miles on electric power only and 155 mile range overall.
PUTTING AN END TO RANGE ANXIETY
The Department for Transport has announced that it is to begin map-
ping the locations of charging points for plug-in vehicles across the UK.
The National Chargepoint Registry should make it easier for motorists to
go electric and evaluate where and how often they need to charge their
car along their journey, reducing "range anxiety".
Toyota Verso without va-va voom
I
TS too noisy, complains my daugh-
ter, referring to the Toyota Verso-Ss
engine as it labours its way through
North London and up the M1. Proof
that even a two-year-old, if exposed to
enough different cars in quick succes-
sion, has the smarts required to be a
motoring journalist.
Shes right too. Most of the time the
four-cylinder 1,329cc VVT-i engine in this
Toyota Verso-S is too loud. Its a result of
its being too underpowered. Up at speed
its fine even comfortable with just a
small amount of wind noise. But by God
does this car wail getting there. It sounds
incredibly overworked, fantastically flus-
tered. You have to drag it kicking and
screaming up to motorway speed. And I
spent quite some time switching
between the automatic option and shift-
ing manually using the Multidrive S CVT
transmission, to see if it was my driving
that was lacking. But the truth is, the
Toyota Verso-Ss 1.3-litre engine struggles
under acceleration which to be fair on
Toyota is not a massive surprise given the
engines small size. Still, it makes
Toyotas decision only to sell the Verso
with this single oh-too-small engine
option somewhat confounding. It also
means it makes the cars light weight
which the marketing men trumpet
much less significant. Unless you drive
this car everywhere under gradual accel-
eration, secure in the knowledge that
you are too old or too tired to race about
like the cyclists overtaking you, then it
will be a frustrating car to drive. And
caning it everywhere will no doubt have
a substantial negative effect on its fuel
economy. The fuel figures are, otherwise,
impressive enough.
To befuddle things further, there is a
Sport button in the cabin. It switches
the car out of its regular Eco mode. I
tried this and then shifted using the F1-
style paddle shifters behind the steering
wheel. In performance terms, I was bare-
ly able to distinguish any change. From
an excitement perspective, I may have
coughed. How very odd.
Yet on paper the Verso-S looks pretty
good. There is a lot of interior space
packaged into its small exterior dimen-
sions. Inside it does feel TARDIS-like.
According to Toyota, the interior is simi-
A noisy engine and an
unattractive interior
make for a rather
disappointing car
THE VERDICT:
DESIGN hhhii
PERFORMANCE hhiii
PRACTICALITY hhhii
VALUE FOR MONEY hhiii
THE FACTS: TOYOTA YARIS
PRICE: 17,065
0-62MPH: 13.7secs
TOP SPEED: 103mph
CO2 G/KM: 120g/km
MPG COMBINED: 54.3mpg
lar in size to one youd find in a family
hatchback. That seems a reasonable
claim to me. Its only when you get out of
the car and youre walking away from it
that you are reminded of its diminutive
size.
The interior is comfortable and the
captains chair I sit in is a nice touch I
have always liked such chairs, being a
lounger at heart and the boot space is
big with a load floor that lifts up to
reveal another lower level. But no
amount of space can make up for the
shocking use of plastic everywhere on
the inside. Like last weeks Yaris a car
that shares the same engine with this
Verso-S the dash is upright and the
switchgear the buttons and dials is in
plastic (again). The relentless use of hard
plastic makes the interior feel a little
outmoded particularly when you consid-
er the cars price. Would a few rubber
feeling dials have been too much to ask
for? So all together the Verso-S feels very
much like a one trick pony. Toyota con-
sider it a mini MPV. I am not so sure that
it is as practical as all that. Im sure its a
reliable and sensible little buy, complete-
ly adequate in moving four people about
comfortably if not at all quickly. But for
me there seems a few too many compro-
mises to facilitate the use of that engine.
WORDS BY
RYAN BORROFF
35
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PAN AM
BBC2, 9PM
New drama series following the
fortunes of four air stewardesses in
the rapidly changing world of 1960s
America. Christina Ricci stars.
NEWYOUVE BEEN FRAMED!
ITV1, 8PM
Harry Hill narrates a selection of
camcorder calamities and viewers
mobile phone clips, featuring footballing
fun and mishaps with horses.
KIRSTIES HANDMADE BRITAIN
CHANNEL4, 8PM
Kirstie Allsopp joins members of the
Disparate Housewives, a Womens
Institute group, as they prepare to
enter their first craft competition.
BBC1
SKY SPORTS 1
7pmLive Darts 11pmFIFA Futbol
Mundial 11.30pmFootballs
Greatest 12amVictory Shield
Football 1.30amGolf 2am-6am
Live Golf
SKY SPORTS 2
7pmFIFA Futbol Mundial 7.30pm
Live Victory Shield Football
9.30pmYoure on Sky Sports!
10.30pmGolf 11pmNFL: Total
Access 12amInside the PGA Tour
12.30amEuropean Tour Weekly
1amTest Cricket 3amA League
Football 3.25am-6amLive Test
Cricket
SKY SPORTS 3
7pmEuropean Tour Weekly
7.30pmLive Greyhound Racing
10pmCage Fighter 10.30pm
Trans World Sport 11.30pmCage
Fighter 12amWatersports World
1amDarts 5amKings of the
Extreme 5.30am-6amFIFA
Futbol Mundial
BRITISH EUROSPORT
8.05pmSport Traveller 8.30pm
Wednesday Selection 8.40pm
Equestrian. World Cup highlights
from Verona, Italy. 9.40pm
Riders Club 9.45pmEuropean
Tour Golf. The Singapore Open.
10.15pmGolf Club 10.20pm
Yacht Club 10.30pmEuro 2012
Flash 10.40pmInternational
Football 11.40pm-12.10amEuro
2012: All Access
ESPN
6.45pmESPN Press Pass 7.15pm
Premier League World 7.45pm
ESPN Kicks: Extra 8pm
International Football 9.45pm
Goal Show10.15pmGoal! Special
10.45pmBasketball 11.15pm
ESPN Kicks: Extra 11.30pmESPN
Press Pass 12amFIA Blancpain
Endurance Series 1amLive
College Football 4amPlanet
Speed 4.30amFIA Blancpain
Endurance Series 5.30am-6am
Basketball
SKY LIVING
7pmCriminal Minds 8pmThe
Secret Circle 9pmBones 10pm
Greys Anatomy 11pmBones
12amCriminal Minds 1amCSI:
Crime Scene Investigation
2.40amMaury 3.30amBones
4.20amNothing to Declare
5.10am-6amJerry Springer
BBC THREE
7pmChildren in Need: 50
Greatest Moments 8pmThe
Worlds Strictest Parents 9pm
Hot Like Us 10pmFILMKing
Arthur 2004. 11.55pmFamily
Guy 12.45amRussell Howards
Good News 1.15amHot Like Us
2.15amThe Worlds Strictest
Parents 3.10amYoung, Dumb and
Living Off Mum4.10am-5.10am
Dont Tell the Bride
E4
7pmHollyoaks 7.30pmHow I
Met Your Mother 8pmDavid
Blaines Street Magic
9pmFILMMission: Impossible
III 2006. 11.25pmMisfits
12.30amThe Big Bang Theory
1.30amScrubs 2.25amHow I
Met Your Mother 2.50amUgly
Betty 3.30amRules of
Engagement 3.50amDesperate
Housewives 4.35am-6am
Switched
HISTORY
7pmHeir Hunters 8pmAx Men
9pmSwamp People 10pm
Mounted in Alaska 11pmLost
JFK Tapes: The Assassination
12amSwamp People 1amAx
Men 2amLost JFK Tapes: The
Assassination 3amHeir Hunters
4amAmerican Pickers 5am-6am
Monster Moves
DISCOVERY
7pmWhale Wars 8pmWheeler
Dealers 9pmThe Kennedy Detail
11pmCoal 12amBear Grylls:
Born Survivor 1amThe Kennedy
Detail 3amDeadliest Catch
3.50amRiver Monsters 4.40am
Moon Machines 5.30am-6am
Destroyed in Seconds
DISCOVERY HOME &
HEALTH
7pmBabes in the Wood 8pmI
Didnt Know I Was Pregnant 9pm
Untold Stories of the ER 10pm
A&E 11pmHospital Sydney 12am
Untold Stories of the ER 1am
A&E 2amHospital Sydney 3amI
Didnt Know I Was Pregnant 4am
A Baby Story 5am-6amBringing
Home Baby
SKY1
8pmThe Middle 8.30pmBest of
Modern Family. Jay teaches
Manny to ride a bike. 9pm
Trollied 10pmFringe 11pmChris
Ryans Strike Back 1amBrit Cops:
Law & Disorder 1.50amBorder
Invasion USA 2.40amMental
4.20amVerminators
5.10am-6amVet Adventures
BBC2 ITV1 CHANNEL4 CHANNEL5
S
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&
C
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TVPICK
6pmBBC News 6.30pmBBC
London News 7pmThe One Show
7.30pmWaterloo Road; BBC News;
News 8.30pmImpressions Show
with Culshaw and Stephenson 9pm
Frozen Planet 10pmBBC News
10.25pmRegional News 10.35pm
The National Lottery Wednesday
Night Draws 10.45pmWho Do You
Think You Are? US 11.15pmFilm
2011 with Claudia Winkleman;
National Lottery Update 11.55pm
FILMThe Weather Man. 2005.
1.30amWeatherview1.35amSign
Zone: See Hear 2.05amPlanet
Dinosaur 2.35amHairy Bikers
Meals on Wheels 3.35amHome
Cooking Made Easy 4.05am-6am
BBC News
6pmEggheads
6.30pmStrictly Come Dancing
It Takes Two
7pmGreat British Food
Revival: Featuring beetroot and
currants.
8pmMasterChef: The
Professionals: The contestants
prepare a monkfish fillet in 15
minutes.
9pmCHOICE Pan Am
9.45pmPan Am
10.30pmNewsnight; Weather
11.20pmCome Fly with Me
(The Story of Pan Am)
12.20amBBC News
4.05am-6amClose
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
8pmCHOICE New Youve
Been Framed!
8.30pmIm a Celebrity Get
Me Out of Here!
10pmITV News at Ten
10.30pmLondon News
10.35pmCops with Cameras
11.35pmHomes from Hell
12.30amThe Zone; ITV News
Headlines
2.35amFILMAnne of the
Thousand Days: Historical drama,
starring Richard Burton. 1969.
5am-5.30amITV Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmCHOICE Kirsties
Handmade Britain
9pmGrand Designs
10pmFresh Meat
10.55pmAlan Carr: Chatty
Man
12amRandom Acts
12.05amMusic on 4
2.05amFILMWillard. 2003.
3.50amThe Guides 4.05am
Accidentally on Purpose 4.30amSt
Elsewhere 5.25am-6.10am
Countdown: Word game.
6pmHome and Away
6.25pmOK! TV
7pm5 News at 7
7.30pmNew Highland
Emergency; 5 News Update
8pmDangerous Drivers
School; 5 News at 9
9pmBig Brother: The Winners
Story
10pmPaul Mertons
Adventures
11pmBanged Up Abroad
12amPoker: The Big Game
12.55amSuperCasino 4amThe
Gadget Show4.50amRough Guide
to Short Breaks 5.05am-6am
Michaelas Wild Challenge
1 2 3 4 5
6 7
8
9 10 11 12 13
14
15 16 17 18 19
20
21 22
23 24
13 12 16
7 15
26 30
26
5 8 6
17 24 9
22 12 15
24
13 11
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11 7 14
4
19
9
29
23
27
23
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10
5
17
13
29
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12
25
21
28
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3
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 Impaired in skill
by neglect (5)
3 Elevates (5)
6 Braid of hair (5)
7 In the past (3)
8 Single article (4)
9 Period between sunrise
and sunset (7)
12 Consume food (3)
14 Automobile (3)
15 Gammon (3)
17 Took no notice of (7)
20 Formerly (4)
21 Exclude (3)
22 Android (5)
23 Stories (5)
24 Newly made (5)
DOWN
1 Quick, fast (5)
2 Wind round and
round (5)
3 Portable lamp (7)
4 Blaze (5)
5 Low in stature (5)
8 Mental picture (5)
10 Farmhouse
cooker (3)
11 Frozen spikes
of water (7)
13 Imitate (3)
15 Custom (5)
16 Signicance of
a story (5)
18 Perfume (5)
19 Drainage channel (5)
T
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4

C O Y P U A D A P T
H A N I L
E R C R Y S T A L
R A D A R C S
U S O L A R M
B L E S S R E G A L
E A S I D E A
G S U T T E R
M A E S T R O R G
T I U E E
P O U N D S H E E R
1 2 8 1 1 3
7 5 4 9 8 5 2 7
1 2 7 7 8 3 9
8 3 1 9 5 7
9 7 1 4 3 6 2
6 4 1 2 8 9 7 5
6 4 7 8 9 5 1
5 4 3 2 6 3
4 1 2 3 5 8 9
8 2 3 8 2 1 4 3
9 5 9 6 8 2
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter words were
CONSERVED and CONVERSED
Lifestyle | TV&Games
Sport
LONDON 2012 chief Lord Coe has
defended the Olympic Stadium deal
with Dow Chemical Company in the
face of growing concern from MPs
and Indian athletes.
Dow paid 7m earlier this year to
cover the cost of the unbranded hi-
tech fabric wrap, which will surround
the stadium and had been threatened
by budget cuts.
Concerns have been raised over the
association with Dow, however, owing
to its links to the Bhopal disaster in
India. The 1984 toxic gas leak, in
which 15,000 died and tens of thou-
sands more were maimed, involved a
factory then owned by Union Carbide,
a company bought by Dow in 2001.
MPs and 21 Indian athletes have
called for the Dow deal to be scrapped.
Lord Coe said: I am satisfied that at
no time did Dow operate, own or were
involved with the plant either at the
time of the disaster or crucially at the
time of the full and final settlement.
London 2012 chiefs defend
Dow deal for stadium wrap
BY FRANK DALLERES
OLYMPICS
MANCHESTER UNITEDS pioneering

training kit sponsorship deal with
logistics company DHL contributed
to a staggering 22 per cent rise in the
clubs commercial revenues for the
quarter ending 30 September.
Figures released yesterday revealed
the Premier League champions, who
signed a 40m, four-year deal with
DHL in August, earned 29.6m from
their commercial arm, while media
revenues were up from 19.4m to
22.6m, aided by a run to a second
Champions League final in three sea-
sons.
Overall United boosted revenues by
16.5 per cent to 73.8m, but the club
did report a pre-tax loss of 6.9m,
caused by currency fluctuations on
its debt, which now stands at 433m.
Matchday income, meanwhile,
has risen 9.6 per cent to 21.6m, with
Old Traffords seasonal hospitality
boxes, built in 2006, completely sold
out for the first time.
Uniteds commercial revenue
boosted by 40m DHL deal
BY JAMES GOLDMAN
FOOTBALL
Sign up at cityam.com
SPORT | IN BRIEF
Chelsea boss denies FA charge
FOOTBALL: Chelsea manager Andre
Villas-Boas has vowed to contest a
Football Association charge of improper
conduct. The Portuguese was heavily
critical of referee Chris Foys perform-
ance during last months defeat at QPR,
in which both Jose Bosingwa and Didier
Drogba were sent off in the first half.
After the match, Villas-Boas said Foy
had directly influenced the result and
committed tremendous mistakes.
Sarries Cape Town plans blocked
RUGBY UNION: Saracens have been
informed they will have to move their
Heineken Cup match against Biarritz in
January from the new Cape Town
Stadium to Newlands Stadium by The
Western Province Rugby Football Union.
Murray faces
Djokovic test
Djokovic (near) pulled out midway through his last match against Murray (far) at the
Cincinnati Masters in August Picture: ACTION IMAGES
BRITAINS Andy Murray will face
world No1 Novak Djokovic in a match
that is likely to provide the highlight
of the group stages of next weeks ATP
World Tour Finals at Londons 02
Arena.
Murray and Djokovic have been
paired together in Group A, which also
contains Spaniard David Ferrer and
Tomas Berdych of the Czech Republic,
who ended the Brits 18-match win-
ning streak at last weeks Paris Masters.
Djokovic and Murray have met three
times already this season with the Serb
having won twice, including a straight
sets massacre at the Australian Open
final in January.
But their most recent clash in the
final of the Cincinnati Masters in
August ended prematurely with
Murray leading 6-3, 3-0 when Djokovic
retired with a shoulder injury.
Fitness has been an increasing issue
for Djokovic, whose stellar season has
been capped by victories in three of the
four grand slam events, ever since his
maiden US Open triumph and has
forced him to withdraw from his last
two tournaments, due to back and
shoulder complaints.
On the other side of the draw, Group
B contains world No2 Rafael Nadal, last
weeks winner in Paris Roger Federer,
as well as Frances Jo-Wilfried Tsonga
and big-serving American Mardy Fish.
BY JAMES GOLDMAN
TENNIS
NOVAK DJOKOVIC
Age: 24
World Ranking: 1
Record v Murray: Won 6; Lost 4
TOMAS BERDYCH
Age: 26
World Ranking: 7
DAVID FERRER
Age: 29
World Ranking: 5
GROUP A | MURRAYS OPPONENTS
Sport
38
DEFIANT skipper John Terry declared
he would never relinquish the cap-
taincy after leading England to a first
victory over Sweden for 43 years on a
triumphant return to the side.
A first-half own goal from Daniel
Majstorovic handed Fabio Capellos
men a second win in four days, fol-
lowing Saturdays defeat of Spain, in
front of the smallest Wembley crowd
for an England match since 1998.
Capello rested Terry at the week-
end and came under pressure to drop
him while he is under police investi-
gation over claims, which he categor-
ically refutes, that he racially abused
QPRs Anton Ferdinand. But the
Chelsea defender (below) returned to
the team to help England complete
an unbeaten 2011, and insisted he
had never considered handing back
the armband and never would.
No chance. I would never step
down, he said. It is something I
dreamed of as a boy. When I was
four or five years old I used to
watch England games and its
something I dreamed of being.
I worked very hard to get
here. Im very passionate,
very confident being
England captain and
very proud to be also.
Liverpool winger
Stewart Downing, rook-
ie Tottenham full-back
Kyle Walker and young
Everton midfielder
Jack Rodwell were the
standout performers
in an experimental England side that
deserved to win by a greater margin.
Capello singled out Rodwell,
Manchester United youngster Phil
Jones and Arsenals Theo Walcott for
praise as he reflected on a growing
array of options ahead of next sum-
mers European Championships.
During these games, Im looking
for something new, and I found it,
said the Italian. These three players
are really good technically, really
good physically, and all three are fast.
That is important in modern football.
It was important to see Jones,
Walcott, Rodwell, to play against a
team which is really organised on the
pitch and difficult to play against.
The answer I received from the per-
formance is really important for me.
Only Hart, Jones and Walcott sur-
vived from the team Capello sent out
against Spain and, although the
Arsenal winger caused a few skir-
mishes early on, the wholesale
changes made for a plodding start rid-
dled with tentative sideways passing.
So it came as a shock when
England took the lead in the 23rd
minute, Downing crossing from the
edge of the area for Barry, whose
glancing header clipped his mark-
er, Celtic defender Majstorovic,
and sailed past goalkeeper
Andreas Isaksson.
Unlike against Spain,
England quickly threatened
to increase their lead, first
through Rodwell, who adjust-
ed his footing well to meet a
cross from Everton col-
league Baines on the
volley, only for the
goal-bound effort to
ricochet wide.
Moments later
Jones went closer,
seizing on a loose
ball on half-way,
b u r s t i n g
through the
back four but poking agonisingly
wide when faced with Isaksson.
Rodwell was guiltier seconds before
half-time when Downing clipped a
gift of a cross and he headed wide of
the open goal. There was little respite
for the Swedish defence when the
match re-started, Downing repeatedly
offering tempting crosses for Zamora.
One the Fulham striker nodded to
Rodwell, whose effort was charged
down, and another he met, only to
see his shot blocked.
Downing could not be blamed for
taking matters into his own hands,
but his low shot did not match his
BY FRANK DALLERES
FOOTBALL
1
0
ENGLAND
SWEDEN
Terry insists he will never quit captaincy
after returning to lead experimental side
to win that hints at bright future
Joe Hart
In the sole moment his con-
centration was tested he responded
well, tipping Elms corner over
6
Substitutes
Scott Carson (Hart, 45) Nothing to do until he
tipped wayward Larsson cross away. James
Milner (Rodwell, 58) One good cross almost cre-
ated second for Bent, otherwise quiet. Daniel
Sturridge (Walcott, 58) Looked keen to impress
on debut and showed endeavour but struggled to
make telling impact. Darren Bent (Zamora, 70)
Denied certain goal by last-ditch header.
HOW THEY RATED
ENGLAND
Kyle Walker
Young full-back showcased his
composure, stamina and willingness
to get forward and attack. Excellent
9
John Terry
All eyes were on him and it
wasnt his best England game, but
better than recent club outings
6
Gary Cahill
Good interceptions and one
excellent block late on; otherwise
quietly effective alongside Terry
7
Leighton Baines
A real threat on the overlap
and combined brilliantly with
Downing. A cert as deputy left-back
8
Gareth Barry
Caused goal, if he didnt quite
score it, and was neat and efficient
if unspectacular. Classic Barry
7
Phil Jones
Another precocious perform-
ance from the 19-year-old, and
almost capped by a deserved goal
8
Jack Rodwell
Superb display again: not over-
awed at all, caused problems with
driving runs and posed a goal threat
8
Theo Walcott
Direct running caused panic in
Sweden defence but crossing was
too often a let-down
7
Stewart Downing
His best display for England
and a constant menace. Beat players
and delivered perfect crosses
9
Bobby Zamora
Battled gamely but wasted a
couple of sniffs at goal when he
ought to have done better
6
Fabio Capello
Not most adventurous tactical
approach but experiment with new
players must be deemed a success
8
Tottenham set to report financial boost
Unbeaten England
TOTTENHAM is today expected to
report the clubs strongest set of
financial results since its listing, with
income boosted significantly by last
seasons run to the Champions
League quarter-finals.
Revenue from broadcast, matchday
and commercial streams have all
increased while pre-tax profit is
expected to be in single figures, fol-
lowing the north Londoners first sea-
son in the lucrative European club
competition, City A.M. understands.
Spurs listed in 1983 and reported
record revenues of 119.8m last year,
although the club made a pre-tax loss
of 6.5m owing to player signings.
The latest results, for the year end-
ing 30 June, will boost Tottenhams
ambitions of moving to a new, bigger
450m stadium close to their current
home. The plans have been held up
by negotiations with government,
Mayor Boris Johnson and Haringey
council. Talks are ongoing but may
run into 2012.
An alternative plan to relocate to
the Olympic Stadium has been
shelved since it was decided that the
facilitys athletics track, a sticking
point for Spurs, would remain in
place for years and perhaps
decades to come. Planning
permission for a 56,250-
seater stadium, which has
the working title of the
N o r t h u mb e r l a n d
Development Project,
was granted in
October 2010 and
the club signed
a planning
agreement
with the
council two
months ago.
Further progress
has been delayed by
talks over how much Spurs will
have to pay for necessary
improvements in transport and
other local infrastructure.
Tottenhams financial strength
allowed chairman Daniel
Levy to swat away a huge
40m summer bid from
Chelsea for Luka Modric
(left). A move to a new
stadium would allow
the club to signifi-
cantly grow match-
day revenue through
increased ticket sales
and more corporate
facilities.
BY FRANK DALLERES
EXCLUSIVE
Last seasons run to Champions League knockout rounds swells Spurs revenues
RATINGS BY
FRANK DALLERES
dribbling and Isaksson clutched it
without fuss. Englands ambition
waned as full-time neared, but there
was still time for James Milner to
hang a cross to the far post where fel-
low substitute Darren Bent was arriv-
ing, but Sebastian Larsson
dramatically headed clear.
Top seeds:
Poland, Ukraine, Spain, Holland
Second seeds:
Germany, Italy, England, Russia
Third seeds:
Croatia, Greece, Sweden, Denmark
Fourth seeds:
Ireland, Czech Republic, France, Portugal
* The draw takes place on 2 December.
One team will be selected from each pot.
EURO 2012 | FINAL LINE-UP
Results
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email sport@cityam.com
MURRAY LEARNS HIS
LONDON OPPONENTS
BRIT TO FACE DJOKOVIC,
FERRER AND BERDYCH: P37
39
MATCH ANALYSIS
BY JAMES GOLDMAN
KEY MOMENT
A landmark strike it might have been, but Englands 2,000th interna-
tional goal is unlikely to live long in the memory. That said, Daniel
Majstorovics own goal the 43rd England have benefited from in
their 139-year history rewarded Fabio Capellos gameplan which
relied on his full-back and wing combinations getting to the bye-line
and providing ammunition for lone centre forward Bobby Zamora. On
the right flank Theo Walcott and Kyle Walker, impressive individually,
displayed a level of understanding you would expect from a pair who
had never played together before. But on the opposite flank Stewart
Downing and Leighton Baines, similarly inexperienced, combined
effectively on several occasions, and it was from the formers cross
that Gareth Barry glanced the ball onto Majstorovics head and past
former Manchester City goalkeeper Andreas Isaksson.
ROONEY HEARING DATE
ENGLAND striker Wayne Rooney will
learn whether his three-game inter-
national suspension is to be reduced
on 9 December when Uefa hear his
appeal at their headquarters in Nyon.
The 26-year-old received a red card
for a petulant kick at Montenegros
Miodrag Dzudovic during Englands
final Euro 2012 qualifying match in
Podgorica last month, which ended
in a 2-2 draw. England manager
Fabio Capello has already confirmed
he will include Rooney in his 23-man squad despite the fact he will miss
the entire group stage of the tournament should the European governing
body uphold the suspension. It is yet to be determined whether Rooney
will attend the hearing which is slated to take place 24 hours before
Manchester Uniteds game with Wolves.
GAME STATS
1 - 0
1 ATTEMPTS ON TARGET 2
7 ATTEMPTS OFF TARGET 5
5 CORNERS 5
53.6% POSSESSION 46.4%
0 YELLOW CARDS 1
0 RED CARDS 0
1 OFFSIDES 3
20 FOULS AGAINST 13
13 FOULS CONCEDED 20
79% PASS COMPLETION 76%
TALKING POINT
An attendance of 48,786, the lowest for a Three Lions fixture since
Wembley re-opened in 2007, may suggest the appeal of Fabio Capellos
side is at an all-time low. In reality, however, last nights figure, which
eclipsed the previous low of 57,897 against Andorra in June 2009, com-
pared favourably with the 35,000 fans who turned up for Italys 1-0
defeat against Uruguay at the 80,000 capacity Stadio Olimpico, while
there were around 25,000 empty seats at the Stade de France as Les
Bleus drew 0-0 with Belgium. A fixture against a Sweden side of limit-
ed appeal would no doubt still have attracted a full house at venues
such as Portman Road and Pride Park, which hosted England matches
while Wembley was being rebuilt, but contractual obligations mean
England wont be going on the road any time soon.
REPUBLIC of Ireland stalwart Damien
Duff hailed last nights qualification
for Euro 2012 as one of the finest
accomplishments of his career.
Leading 4-0 from the first leg in
Tallinn, Stephen Wards 34th minute
goal eliminated any lingering doubts
over the ties outcome. And although
Konstantin Vassiljevs ensured the
second leg ended all square, it hardly
dampened the party atmosphere
inside Dublins Aviva Stadium.
Duff was just 23 when he repre-
sented Ireland at the 2002 World Cup
their last major tournament and
the Fulham winger admitted he
feared he would never represent his
country on the grandest stage again.
He said: Its probably even better
than [reaching the World Cup in]
2002 because time is running out for
a few of us, so I suppose you appreci-
ate it more now.
Veteran Duff celebrates as Ireland end
10-year wait for tournament football
BY JAMES GOLDMAN
FOOTBALL
1
1
REP OF IRELAND
ESTONIA
end year on high
Ward scored his second goal for Ireland in
last nights draw Picture: GETTY
Barrys header was
deflected in by
Majstorovic
Picture: ACTION
IMAGES
(REP OF IRELAND WIN 5-1 ON AGGREGATE)
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