Cityam 2012-02-28

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Simply the best in the West: HSBC posts record profits
THE TAXMAN took an extra 8.3bn
from top UK companies in the last fis-
cal year, with big firms contributing
14 per cent more compared to the
previous year.
In total, the so-called Hundred
Group of businesses paid an eye-
watering 67.7bn in tax in the year to
March 2011, according to data
released by PwC this morning.
Their contribution made up 13 per
cent of all receipts to the public
purse, prompting the Treasury to hit
back at recent claims that the govern-
ment has been toadying up to big
business.
Public debate over tax paid by large
firms has become distorted and
detached from reality, Treasury
minister David Gauke MP will argue
today. Ive seen external estimates
that the UK tax gap is as much as
120bn more than three times
HMRCs own figure based on far-
fetched assumptions, Gauke will say.
Once legal tax relief is taken into
account, investigations often find
there is no tax liability at all, he
BY JULIAN HARRIS
TAX
BUSINESS WITH PERSONALITY

will claim today.
Business must engage with the
debate and demonstrate just how
critical [their] success is to the pros-
perity of individuals and families
across the economy, Gauke will add.
But the news that large companies
pay more tax than ever was marred
by the revelation that HMRC has
cracked down on Barclays, shutting a
loophole worth 500m to the bank.
HMRC did not name the company
involved yes-
terday, but said it was clos-
ing a scheme that saw banks
buy back their debt at a lower price
than they sold it, before avoiding cor-
poration tax on the profits.
Certified Distribution
02/01/12 till 29/01/12 is 92,258
www.cityam.com Issue 1,580 Tuesday 28 February 2012
67,700,000,000
The amount of tax paid by Britains top 100 companies last year
Over 2m people in the UK are
employed by Hundred Group firms
(mainly FTSE 100 groups and several
large private companies).
PwC estimates that these firms
employ seven per cent of the work-
force, paying around 20,000 per
annum above the national average.
And from their average wage of
46,000 per annum, 20,000 is paid
to the state via employment tax, the
research shows.
Employment taxes were one of the
drivers of higher tax take from
large firms, along with corpora-
tion tax revenues from which
leapt by 60 per cent and irrecov-
erable VAT.
And a falling corporation tax
rates could actually boost revenues
if they encourage more businesses
to invest in Britain, said Andrew
Packman, a partner at PwC.
Separately, HMRC is set to
appoint a new tax assurance com-
missioner in a bid to overhaul the
way it brokers tax settlements, fol-
lowing criticisms of its previous
agreements with the likes of
Vodafone and Goldman Sachs.
BARCLAYS HIT; ALLISTER HEATH: P4
HSBC yesterday posted the highest
2011 profit so far of any Western bank
after escaping the worst of the
Eurozone crisis.
Pre-tax profit rose 15 per cent to
$21.9bn (13.84bn), just short of the
$22.2bn expected by analysts.
Britains largest bank achieved strong
revenue growth in Asia, the Middle
East and Latin America although it
was hit by a $2.4bn loss in its US con-
sumer finance division.
HSBCs results which comfortably
beat the $19bn profit of US rival JP
Morgan were boosted by a $3.9bn
accounting gain on the value of its
debt. Stripping that out, underlying
pre-tax profit fell six per cent to
$17.7bn.
Stuart Gulliver, announcing his
first full-year results as chief execu-
tive, brushed off concern over a slow-
down in emerging markets, where
HSBC makes most of its profits, and
said the resolution of the Eurozone
crisis was the real issue of negative
focus.
We remain comfortable with the
[outlook in] emerging markets and
are confident that GDP growth in
emerging markets will be positive
and China will have a soft landing.
The worlds most profitable banks
in recent years have been Chinas
ICBC, which made $32bn in 2010, and
China Construction Bank, which
made $26.4bn. MORE:P6-7
BY PETER EDWARDS
BANKING
WHAT WOULD 67.7BN BUY IN THE PUBLIC SECTOR?

The top 100s tax contributions could cover the wages of...
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THE BEAT
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GPs
3.2m
3.1m
2.9m
1.2m
1m
Tax take from
Britains largest
companies rose
13%
from top
100 firms
Total tax
receipts
Insura
op
ms
Largest
contributing
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News
4 CITYA.M. 28 FEBRUARY 2012
POLICE and officials from the News of
the World newspaper stalled early
attempts to investigate allegations of
phone hacking by its journalists, the
Leveson inquiry was told yesterday.
Former police commander Brian
Paddick wrote in a statement that offi-
cers had evidence of hundreds of
phone hacking victims in 2006.
He said police decided to warn all
these victims that they had been tar-
geted but he believed at least 800 peo-
ple were kept in the dark.
Chief counsel to the inquiry, Robert
Jay, said an email to the papers then-
editor Andy Coulson said Rebekkah
Brooks had been relayed informa-
tion about the scope of the hacking in
2006. He claimed that the relationship
between police and the media, was if
not actually corrupt, very close to it.
Barclays hit
by crackdown
BARCLAYS has been targeted by the
governments closure of an aggres-
sive tax avoidance scheme, costing it
around 500m.
The scheme shut by HMRC saw
banks buy back their debt at a lower
price than they had sold it, before
avoiding corporation tax on the profit.
The government is shutting down
that scheme retrospectively, hitting
any bank which avoided the tax from
1 December onwards. It did not name
the bank affected.
Treasury minister David Gauke said
the decision was not action that the
government is taking lightly.
Barclays announced its buyback of
some of its debt in December, but yes-
terday it refused to comment on the
Treasury announcement despite
repeated requests.
Reuters estimated that Barclays
made around 450m on its buyback,
which could leave it with a tax bill of
120m.
A Treasury source believes the
measures could protect up to 2bn in
tax.
By acting immediately, the govern-
ment will ensure the payment of over
half a billion pounds in tax, protect
further billions of tax from being lost
and maintain fairness in the tax sys-
tem, the UK government said in a
statement.
BY TIM WALLACE
BANKING
GORDON GEKKO TELLS WALL ST GREED

IS NOT GOOD
Michael Douglas is playing a new and
unlikely role as spokesman for the US
Federal Bureau of Investigation in its
war against corruption on Wall
Street. The Hollywood actor famous
for his line greed is good in the
1987 film Wall Street is sending a
new message in a public service
announcement, telling traders and
brokers that insider trading is a seri-
ous crime.
NORTH SEA OIL PRODUCTION PLUNGES
Oil exploration activity in the North
Sea fell by half last year to only 15
wells, the lowest level since the mid-
1960s, according to the sectors trade
body. Annual production declined by
18 per cent, meanwhile, despite high
prices.
CROSSRAIL TENDER FAVOURS UK
Ministers will today launch the ten-
der for a 1bn contract to supply
trains for the crossrail project with
the government aiming to level the
playing field for UK-based manufac-
turers. The coalition is seeking to load
the process as far as legally possible
towards a British factory.
BAD MANAGERS DAMAGING ECONO-
MY, WARNS REPORT
Almost half of British managers think
their immediate superior is ineffec-
tive, says a Chartered Management
Institute and Penna report. A culture
of bad management is damaging the
UK economy, it added.
WIKILEAKS LIFTS LID ON SPYCRAFT
OF THE SHADOW CIA
The murky world of corporate spy-
craft was exposed last night as
WikiLeaks began publishing a huge
trove of e-mails belonging to a compa-
ny known as the shadow CIA. Julian
Assanges anti-secrecy group has
obtained what it said were five mil-
lion internal e-mails from Stratfor, a
US security firm that provides intelli-
gence to Government agencies and
private companies.
FACEBOOK UNVEILS PLAN TO WREST
APPS AWAY FROM APPLE
Facebook has laid down a direct chal-
lenge to Apple as it advances into the
mobile internet market.
COSTA CRUISE LINER ADRIFT IN
INDIAN OCEAN SIX WEEKS AFTER
CONCORDIA DISASTER
A cruise liner from the same fleet as
the stricken Costa Concordia was
adrift in the middle of the Indian
Ocean after a fire broke out in its
engine room. More than 1,000 passen-
gers, thought to include Britons, and
crew were left stranded on board the
Costa Allegra as it drifted, without
engine power near the Seychelles.
FIRST-TIME SELLERS FIND THEMSELVES
STUCK IN UNSUITABLE FLATS
Families looking to move into larger
properties are finding themselves
stuck in first-time buyer flats because
they cannot sell their homes.
WAL-MART GIVES HOLLYWOOD A
HAND
The movie industry is recruiting Wal-
Mart Stores to help attract users to its
struggling online video-library serv-
ice. Wal-Mart is in discussions to pro-
vide an in-store service that will assist
customers in registering DVDs they
already own with the movie indus-
trys UltraViolet system.
TRANSCANADA TO BUILD GULT COAST
LEG OF KEYSTONE XL
TransCanada said it will move ahead
with the US Gulf Coast leg of its con-
tentious Keystone XL oil pipeline, a
move expected to help ease a Midwest
supply glut while Washington delays
a decision on the bigger project.
WHAT THE OTHER PAPERS SAY THIS MORNING
Remember UK Plcs vast contribution
IT is sometimes argued, including by
government advisers, that the state
should promote small firms above
large ones. These people even argue
that small, insurgent entrepreneurs
are morally superior to larger, more
bureaucratic multinationals. I dis-
agree, but I can see where they are
coming from: I too would much rather
work for a small, nimble, disruptive,
innovating firm grabbing market
share from established rivals (and Im
fortunate that I do). Entrepreneurs are
a great force for progress.
But while successful start-ups are
the future, large firms are equally
vital. They should not be bashed mere-
ly for being large and successful. Large
multinationals make a huge contribu-
tion and drive productivity, skills and
investment; and as astonishing figures
out today reveal, the top 100 largest UK
firms and their staff account for 13 per
cent of all taxes collected (and pay staff
an average of 46k a year, against a UK
average wage of 26k).
The governments job should be to
lower artificial barriers to entry to
markets (many of which are created by
regulations that benefit incumbents),
allow businesses small and large to
compete, eliminate subsidies (which
tend to be captured by larger firms but
are counter-productive regardless of
who receives them) and make it easier
for people not just to start a business
but to grow it. They should not pro-
mote a nave, small is best caricature
but neither should they live in corpo-
ratist sin with big business. Of course
large firms are more bureaucratic; but
they are nevertheless hugely less so
than government departments, so it is
a bit rich for politicians to criticise
them on such grounds.
A report out today reminds us of
just how important the largest firms
in the country are, and why the cur-
rent anti-business climate, mounting
calls to tax senior executives even
more heavily and the endless flood of
red tape is counter-productive. We
need more successful firms large and
small to be based in the UK and to
employ people here; yet too often one
gets the impression that the govern-
ment is trying to do the opposite.
The tax take from Britains largest
companies rose 14 per cent in the year
ending March 2011 to reach 67.7bn,
PwCs annual report for The Hundred
Group reveals. The proportion of total
tax paid and collected by these firms is
now higher even than at the height of
the bubble. Payments of corporation
tax increased by 60 per cent. Other
taxes such as employment taxes also
rose strongly. For every 1 paid in cor-
poration tax, firms paid a further
1.53 in other taxes borne, and helped
generate an additional 4.15 through
taxes they collect and administer such
as pay as you earn. A shocking 46 per
cent of the value distributed by the
companies was paid to the state in
taxes borne and collected.
Of course, companies often engage
in dubious (though legal) practices to
minimise tax bills. Today we report on
HMRCs decision to throw out one
scheme at Barclays, including via a ret-
rospective change in the law (which in
itself may set a dangerous precedent).
It certainly makes no sense that some
firms pay tax that others can avoid,
which is why we need radical tax
reform to produce a simpler, fairer and
pro-growth and pro-wealth tax system
which does away with loopholes and
avoidance opportunities. But the
untold story is that large firms are in
the aggregate paying far more tax
than ever. We are in danger of forget-
ting just how much we need them.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
HENRY Kravis and George Roberts,
the co-founders and chief executives
of KKR, have each received a payout of
around $94m from the private equity
group.
The two 68-year-old cousins earned
about $64.2m each in cash dividend
payments from their combined 25
per cent stake in KKR last year, accord-
ing to documents filed with the
Securities and Exchange Commission
yesterday.
They also earned a fixed salary of
$300,000 each and $29.3m in carried
interest payments or their share of
profits the firm made from its invest-
ments.
Private equity firms and hedge
funds have come under fire in the US
for the way their executives are able
to exploit a tax break that allows car-
ried interest payments to be treated
as a capital gain taxed at a 15 per
cent rather than 35 per cent levied on
salary income.
BY KASMIRA JEFFORD
PRIVATE EQUITY
KKR bosses earn $94m

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
Code of Practice, a copy of which can be found at
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Barclays, led by chief
exec Bob Diamond,
could end up paying
120m because of the
closure, it is estimated
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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 Gavin Billenness
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
The new jobs website for London professionals
CAREERS.com
Bond of police
and NotW too
close: Leveson
MEDIA
Henry Kravis and George Roberts co-founded KKR and have reaped the rewards
News
DAVID Ross, the colourful chairman
of safety gear supplier Cosalt, said
last night he was preparing for life
running a public company after fail-
ing to win sufficient backing for a
de-listing.
The multimillionaire investor
just missed out on the 75 per cent
investor support needed to go pri-
vate, which would save an estimat-
ed 500,000 in listing costs.
Ross, whose grandfather founded
Cosalt a century ago, won control of
the Grimsby firm last month but
yesterday he and his allies won only
73 per cent shareholder backing for
the motion to go private.
After the meeting in Cosalts
home town Ross said: Given the
current position of the business, the
board and I believe that the compa-
ny would be better off as a private
enterprise without the associated
high costs of being a listed company.
However, the decision from
todays general meeting
means the company will
continue to be listed and
as a board we will plan
accordingly.
Cosalt said it is in
talks with potential
providers over the extra
cash it needs for working
capital. Net debt was
18.7m on 9
February.
Ross, who found-
ed Carphone
Warehouse with
his school friend
Charles Dunstone in 1989, first
joined Cosalts board in 2005.
He resigned in 2008, however,
after he was found to have pledged
shares of several companies as col-
lateral against personal loans. The
Financial Services Authority
cleared him of wrongdoing in
January 2009, allowing him to
return to Cosalts board.
Long-term institutional
investors in Cosalt have seen
the value of their shares plum-
met over the last three years.
David Ross, the Cosalt
chairman, just
missed out on the
75 per cent sup-
port needed to
take the firm
private
Ross loses in bid to
take Cosalt private
BY PETER EDWARDS
SUPPORT SERVICES
GERMANY approved the second

Greek bailout yesterday, although
17 MPs from the ruling parties
insisted the measures will not help.
And the ratings agency Standard
& Poors gave out its own dim view
of Greeces debt swap plans, follow-
ing in Fitchs footsteps to down-
grade the countrys long-term
debts.
S&P said that once the debt
exchange is concluded, it will likely
raise Greeces sovereign credit rat-
ing from selective default to
CCC still deep in junk territory.
Economic conditions continued
to deteriorate in France, with
unemployment rising for the ninth
consecutive month, while the
European Financial Stability
Facility (EFSF) was put on down-
grade watch by S&P.
S&P cited the risk that some
guarantors, including France, may
face downgrades soon. The EFSF
lost its top level triple-A rating just
last month.
In France the number of jobseek-
ers hit 2.863m in January up
13,400 in the month.
Greeces 130bn (110bn) bailout
package was approved in German
parliament by a majority of 496 to
90, with several vocal ruling party
members voting against the gov-
ernment.
A total of 304 ruling party mem-
bers voted with the government,
meaning Merkel fell short of the
311 votes needed for an absolute in
the 620 parliament.
It is economically wrong, said
Klaus-Peter Willsch, from Merkels
CDU party who voted against the
bailout arguing Greece has a
chance outside the euro, not in it.
Greeks get backing from Germany...
and another downgrade from S&P
EUROZONE
DOZENS of police and City of

London officials moved in just after
midnight this morning to evict pro-
testers from the Occupy London
site at St Pauls Cathedral.
As the police arrived in force,
protesters gathered on the steps of
the Cathedral.
Anti-capitalists chants rose above
the sound of flute music and mem-
bers of the Christian think-tank
Ecclesia offering prayers for the
protesters.
Some protesters were already
taking down their tents and leav-
ing the camp before the police
arrived while others were deter-
mined to stay, with some tempo-
rary wooden barriers being set up.
Occupy London was last week
denied the right to appeal against a
High Court decision to allow their
eviction to proceed, giving the City
of London Corporation the go-
ahead to clear the site.
A spokesperson for Occupy
London told reporters last night
that they were still planning to
appeal to the European Court of
Human Rights to highlight their
right to protest. City of London bailiffs and police moved in last night to evict Occupy London protestors from St Pauls Picture: Kasmira Jefford / City A.M.
THE BANK OF ENGLAND is poised to
expand its City presence from
Threadneedle Street to Moorgate,
bringing an end to its year-long search
for office space to house the new City
regulator.
The Bank began a search last year
for a home close to its headquarters to
house the new Prudential Regulation
Authority, which will be created next
year as a result of the Financial
Regulation Bill that is currently pass-
ing through parliament.
Sources close to the company said
the Bank was close making a decision
to relocate the PRAs 1,000 staff to 20
Moorgate, the home of blue-chip bro-
ker Cazenove, which is moving its
staff to Canary Wharf.
The Banks demand for an extra
150,000 square feet is a sign of its
expansion as it prepares to spread its
wings under new rules that will see
the Bank given powers to police banks
and insurers. The PRA will succeed
the Financial Services Authority when
it is split into two next year.
The Bank lines
up Moorgate as
its new office
BANKING
City evicts Occupy London protesters

BY KASMIRA JEFFORD
POLITICS
SOARING costs have hit profits at

HSBC after it spent heavily on pay-
ing its bankers in the Far East.
HSBC said success in emerging
markets was becoming increasingly
expensive, with costs rising 10 per
cent, or $3.9bn a third of that due
to higher pay.
HSBC posted a 15 per cent rise in
pre-tax profit to $21.9bn, driven by
a record performance from its com-
mercial bank. Group underlying
pre-tax profit fell six per cent to
$17.7bn.
Stuart Gulliver, chief executive,
said: Wage price inflation and
competition for staff is very high.
We are not the only people to work
out that the emerging markets
have high GDP growth and theres a
limited pool of talent.
Profits at the investment bank
fell 24 per cent to $7bn, as
Eurozone turmoil hit capital mar-
kets work.
Overall bonus payments fell two
per cent to $4.2bn for a year in
which the bank was fined for mis-
selling products to elderly cus-
tomers. Gulliver received a total of
7.2m, including a 2.2m bonus.
The banks cost-efficiency ratio
slipped, however, to 57.5 per cent
from 55.2 per cent. Its target is 48 to
52 per cent and Gulliver admitted it
would be a challenge to meet the
target to reduce the ratio by 2013.
HSBC also disclosed it is in dis-
pute with HMRC over tax which
could cost up to $4.9bn.
Asian costs
take a shine
off HSBC win
News
LLOYDS Banking Group deputy chair-
man Glen Moreno has become the lat-
est board member to leave the bank,
announcing he will step down from
the bailed out banks board in May.
Moreno, also chairman of Pearson,
said it was time to move on after
working on the fall-out from the
banking crisis for more than three
years now, first at UKFI and then at
Lloyds Banking Group.
David Roberts, chairman of the
banks risk committee, will become
deputy chairman while Anthony
Watson, remuneration committee
chairman, will become senior inde-
pendent director.
Morenos farewell is the latest in a
string of exits from the bank, which
last week reported an annual loss of
3.5bn. In recent months, former
head of wholesale Truett Tate, finance
chief Tim Tookey, Helen Weir and non-
exec Julian Horn-Smith have all
announced departures.
Moreno the latest
Lloyds exec to exit
Glen Moreno says he will not stand for re-election at the May AGM Picture: GETTY
BY JENNY FORSYTH
BANKING
ANALYSIS l HSBC
p
23Feb 27Feb 24Feb 21 Feb 22Feb
570
560
550
580
553.50
27 Feb
BY PETER EDWARDS
BANKING
NEWS | IN BRIEF
Cheap cash repairs balance sheets
Eurozone banks balance sheets sta-
bilised in January thanks to major sup-
port given out by the European Central
Bank (ECB) at the end of December, fig-
ures out yesterday showed. Bank lend-
ing to businesses fell by 1bn (0.85bn),
compared to 35bn in December. The
ECB gave three-year loans worth a total
of 489bn to Eurozone banks in its first
long-term refinancing operation (LTRO),
which will be repeated this week.
Deutsche Banks US chief to leave
Deutsche Bank is seeking a new chief
executive for its Americas business after
Seth Waugh decided to step down,
Germany's biggest lender said yesterday.
The move comes as Deutsche Bank draws
up a list of new leaders to take the helm
after Josef Ackermann, group chief execu-
tive, retires in May. Waugh will continue to
serve the bank as an adviser.
117m removed from ISAs
Savers are taking more money out of ISAs
than they put in, with 117m removed
from accounts in January. The Investment
Management Association says this is the
highest outflow since October 2008.
January is the fourth month in a row ISAs
have seen outflows, following inflows
between March 2009 and June 2011.
Hollande calls super-rich tax rate
Franois Hollande, the socialist frontrun-
ner in France's presidential election, has
called for a 75 per cent top rate tax on
people earning more than 1m a year. In
a TV interview last night, Hollande gave
details of his economic proposals, includ-
ing a new upper income tax band of 45
per cent for those earning more than
150,000.
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News
Tiger banks paying high price for talent
COMPARED to the billions-of-pounds
worth of losses announced by RBS
and Lloyds last week, HSBCs record-
breaking profit looks pretty impres-
sive even if it was flattered by an
accounting gain. Like Standard
Chartered, which reports tomorrow,
HSBC is Asia-focused and free from
the shackles of state control. Thats
why the pair are in such rude health
compared to their domestic counter-
parts
But make no mistake, these tiger
banks have a serious problem of
their own. Their costs are surging
due to a shortage of bankers in fast-
growing markets, leading to what
StanChart boss Peter Sands has called
a war for talent.
Just look at HSBCs cost efficiency
ratio for 2011, which grew substan-
tially from 55.2 per cent a year ago to
57.5 per cent. HSBC chief executive
Stuart Gulliver has said he wants to
slash the ratio to between 48 and 52
per cent by 2013, but the direction of
travel let alone the speed is wrong.
Whether Gulliver manages to hit
the target depends on how effective a
cost-cutter he is. He has already
announced an ambitious savings pro-
gramme, which aims to slash costs by
as much as $3.5bn by the end of 2013.
No-one is saying that HSBC should
not pay market rates for top-flight tal-
ent in fast-growing regions, but that
is not the only reason costs have drift-
ed higher. The bank is bloated with
middle managers and needless
bureaucracy.
In May last year, Gulliver unveiled
a handful of efficiencies, including a
100m saving from reduction of
paperwork, but these were small fry.
If he has any hope of hitting his tar-
gets, hell have to cut some red
meat and fast.
BOTTOMLINE
Analysis by David Crow
Stuart Gulliver is fighting for talent in the Far East Picture: GETTY
HISCOX beat expectations yesterday by
posting a profit in one of the worst
years on record for the insurance
industry.
The firm was badly hit by 270m of
catastrophe-related claims, driven by a
spate of natural disasters including
earthquakes in Pacific regions and
flooding in Thailand.
Profits plummeted 91 per cent to
17.3m for 2011, down from 211.4m
the year before.
Analysts had expected the firm to
make a substantial loss, but the claims
were offset by a 75 per cent jump in
profits in its UK retail business.
The company also got a boost from
the release of 199m in cash it had set
aside earlier against claims that did
not materialise.
Hiscox produced a terrific set of
results for 2011 considering the scale
of the insured catastrophe losses for
the industry during the year, said
ShoreCap analyst Eamonn Flanagan.
Chief executive Bronek Masojada
echoed this, saying: The fact that
Hiscox made a profit for the year is a
demonstration of the strength and
resilience of our group.
The firms event cancellation cover
led to some unusual claims, such as
covering the cost of rearranging Rugby
World Cup games affected by the New
Zealand earthquake.
The company also announced that
chairman and former chief executive
Robert Hiscox would retire at the end
of the next financial year.
Shares remained flat at 410p.
Hiscox beats
expectations
with a profit
Make-up buy looks nice for 3i
BRITAINS oldest private equity house
3i has spent around 120m (101.6m)
on a German firm that supplies a
series of cosmetic industry giants.
3i has taken a majority stake in
Geka, which makes brushes, applica-
tors and packaging systems and is
based in Bechhofen.
The size of its shareholding has not
been disclosed but City A.M. under-
stands it is of around 80 per cent.
Geka, set up in 1925, has worked for
Chanel, Procter & Gamble, LVMH and
Avon and turned over about 100m
last year.
Ulf von Haacke, managing director
of 3i Germany, said: Gekas innovative
strength and long-term partnerships
with the leading cosmetics manufac-
turers put the company in an excellent
position to foster growth in its highly
attractive and stable market segment.
Geka runs production facilities in
Bechhofen and Elgin in Illinois and
also has a sales office in France.
The deal comes at a subdued time in
the buyout market as banks rein in
lending for new deals.
Last month 3i reported investments
of 82m in the third quarter, com-
pared with 448m for the first six
months of the year.
It wants to grow Geka by giving it
access to growth capital and its inter-
national network. Franco Luc, chief
executive of Geka, adds: In addition
to expanding our business into the
Asian and South American markets,
we are looking to enter the cosmeceu-
tical market with 3is support.
Cosmeceuticals are a combination
of cosmetics and pharmaceuticals.
BY JAMES WATERSON
INSURANCE
BY PETER EDWARDS
PRIVATE EQUITY
News
Geka supplies make-up companies including Chanel
ANALYSIS l Hiscox
p
415.00
412.50
407.50
410.00
405.00
402.50
417.50 409.80
27 Feb
ROBERT Hiscox is an art collector,
father of five sons and the business-
man who turned a small Lloyds of
London underwriter into a FTSE
250 company.
But after 47 years at the firm that
bears his name, he says he will step
down as chairman in a years time.
He told City A.M. that he feels like
a schoolboy about to leave school
as he faces the prospect of a life
without diary constraints where I
can actually go to Paris, have lunch
with my wife and travel.
The business is vastly different to
the solitary syndicate that the
Cambridge graduate took over
when his father died in 1970.
Lloyds was rampantly amateur
and it was uncomfortable that your
competitors were so foolish. I
enjoyed it immensely because there
were a lot of stupid people and I
could make a lot of money.
But I had unlimited liability and
soon realised that I would go
down with the rest of them
its fun having foolish competi-
tors but its no fun if you have
to bail them out.
As deputy chairman of
Lloyds in the early 1990s he
helped modernise the mar-
ket and improve the level of
regulation: I do not believe
in completely free markets. Human
beings are incompetent and cor-
rupt when left on their own for too
long. Regulation is necessary, as
long as its sensible.
Hiscox will assist his successor
when requested, continue to be
involved with the firms charity
work and will maintain its famous
corporate art collection hes a
big fan of Freud and Picasso.
Now Ill be able to go to more
exhibitions and spend more time at
my house near
Marlborough. Ive
been a slave to
this business
for 47 years
and I look for-
ward to only
being here
when they
n e e d
me.
Insurance firm chair
to leave after 47 years
ROBERT HISCOX
INSURANCE firm LV= yesterday
reported profits of 72.1m for 2011,
more than double the amount
earned in the previous year.
The companys general insurance
arm, formerly known as Liverpool
Victoria, grew premium revenues by
23 per cent to 1.46bn and overcame
declining investment returns to post
the substantially improved profit.
LV= is now the fourth biggest car
insurer in the UK, and gross premi-
ums written in car insurance rose by
53 per cent to 578m.
The firm profited from a reduction
in claims following car accidents,
mainly due to customers driving
more slowly to save petrol and
improved safety measures.
John ORoarke, managing director
of LV= general insurance, is targeting
further increases in profitability dur-
ing the next year: Our focus for 2012
and beyond will be on increased prof-
itability along with steady growth.
We believe that the quality of our
portfolio and the excellent rapport
we have with our customers will
enable us to generate sustained
growth in underlying profits over the
coming years.
LV= added 500 staff during 2011. It
is the UKs largest friendly society
with around one million members.
Earnings double
at LV despite
tough trading
INSURANCE
News
ESSAR Energy yesterday reported
earnings which fell short of forecasts
in a year blighted by a long-running
battle with Indian tax authorities.
The FTSE 100 company is facing
twin setbacks in India, its key mar-
ket for oil products and electricity,
due to delays in government
approval to mine cheaper coal from
its own resources and a court ruling
that ended a tax break for a sub-
sidiary.
Full-year earnings before interest,
tax, depreciation and amortisation
(Ebitda) were $624.8m (394.2m)
compared with $696.5m in 2010 and
falling short of an analyst poll pre-
dicting $685m.
Shares, worth less than a third of
their 2010 listing price, tumbled on
the news, with stocks falling 14.6 per
cent to 107.6p.
Essar Energy chief executive
Naresh Nayyar said he was confident
that the company will be able to
meet any repayments due on its
783m government loan, which was
initially deferred until 2021.
Essar misses
forecasts as
tax case hits
BY JOHN DUNNE
ENERGY
INVESTORS yesterday welcomed

Vedantas proposed restructuring to
improve access to cash and reduce
debt, saying the pressure is now on
the company to implement the plan
after a similar exercise failed more
than three years ago.
Its stocks overall have underper-
formed the British sector by about
25 per cent since the start of last
year, in part because of its web of
subsidiaries and heavy debt burden.
Vedanta said it would take the
first steps to eliminate cross hold-
ings by merging base metals produc-
er Sterlite Industries into iron ore
miner Sesa Goa to create Sesa
Sterlite, an eventual umbrella unit
for others.
Sesa Sterlite, which would be 58
per cent owned by Vedanta, would
be Vedantas main operating sub-
sidiary, holding all its producing
assets from oil and gas to power and
aluminium. The only other remain-
ing subsidiary directly owned by
Vedanta would be Konkola Copper
Mines, its Zambian operation. We
are supportive. The problem is they
have got to get it through [sharehold-
ers in Sesa and Sterlite], one top 10
shareholder said.
Vedanta was forced to scrap a sim-
ilar exercise in 2008 after investors
in separately listed subsidiaries
opposed the plan.
Vedanta boosted by plan to
cut debt and generate cash
BY HARRY BANKS
MINING
EXXON LIFTS LID ON KURDISTAN PLANS

EXXON Mobil, led by chief executive Rex Tillerson (pictured), has finally disclosed its
plans to explore for oil in Iraqs Kurdistan. The news, in the companys annual report,
broke months of silence over the investment. Exploration and production activities in
the Kurdistan region of Iraq are governed by production-sharing contracts negotiated
with the regional government of Kurdistan in 2011, Exxon said. Picture: GETTY
ANALYSIS l Essar Energy
p
120
115
110
105
125
130
107.60
27 Feb
NEWS | IN BRIEF
LSE raises 9m for Turquoise
The London Stock Exchange has raised
9m to boost the position of its
Turquoise derivatives trading platform.
The market was set up in 2007 to facil-
itate secondary trading of European
equities, and the LSE has been raising
money since the start of the year.
Turquoise is now majority owned by
LSE, with twelve of the leading invest-
ment banks holding the remainder of
the shares.
Clegg asks for health changes
Deputy Prime Minister Nick Clegg yester-
day laid out his final changes to the
health bill in a bid to salvage the coalitions
flagship reform. Clegg said in a letter to
party MPs and peers that the bill needs
further change to rule out beyond doubt
any threat of a US-style market in the
NHS. As the House of Lords continued to
tussle over various amendments, Clegg
said the bill should be allowed to pro-
ceed if his demands were met.
BP SHARES were among the highest
climbers on the FTSE 100 in early
trading yesterday after the trial to
decide who should pay for the 2010
Gulf of Mexico oil spill was delayed by
a week.
The postponement gives BP more
time to cut a deal with tens of thou-
sands of businesses and individuals
affected by the disaster.
Less than 24 hours before the case
was set to start in a New Orleans fed-
eral court, the judge pushed back the
date to 5 March.
The delay allows further talks
between BP and the Plaintiffs
Steering Committee (PSC), which rep-
resents condominium owners, fisher-
men, hoteliers, restaurateurs and
others who say their livelihoods were
damaged by the 20 April 2010 explo-
sion of the Deepwater Horizon
drilling rig and subsequent oil spill.
Eleven people were killed, and
4.9m barrels of oil spewed from the
mile-deep Macondo oil well, in by far
the worst offshore US oil spill.
BP and the PSC are working to
reach agreement to fairly compensate
people and businesses affected by the
Deepwater Horizon accident and oil
spill, BP said in a statement.
The oil major said there was no
assurance that the talks would lead to
a settlement. BPs stock lifted 1.4 per
cent after the announcement.
BY JOHN DUNNE
ENERGY
TRANSOCEAN took a $1bn (632m)

charge related to the 2010 Gulf of
Mexico oil spill yesterday, the clearest
indication yet that the contract
driller is preparing to settle the case.
Shares of Transocean, owner of the
worlds largest offshore drilling fleet,
rose five per cent on its solid quarter-
ly results, and the prospect of closing
out a liability that has loomed for
nearly two years.
Barclays analysts said the market
had expected a charge of about $3bn
and, like many others, anticipated a
settlement amount emerging in the
days ahead.
We had thought there was a 50/50
chance for a settlement before the
trial but view the delayed trial start
date as highly encouraging, UBS ana-
lyst Angie Sedita added.
Transocean also took an estimated
non-cash charge of $5.2bn in the
fourth quarter resulting from good-
will impairment associated with its
contract drilling services unit.
Its fourth-quarter net loss widened
to $6.12bn, from $799m last year.
Fourth-quarter revenue rose 14 per
cent to $2.4bn, partly due to two
semi-submersible rigs that
Transocean added when it bought
Aker Drilling last year.
Transocean books $1bn Gulf
charge as its losses worsen
BY HARRY BANKS
ENERGY
News
BP chief executive Bob Dudley is seeking to draw a line under the Gulf spill crisis
Picture: GETTY
BP shares up
as legal fight
is put on hold
ANALYSIS l BP
p
502
500
498
496
494
504
501.70
27 Feb
HARVARD law graduate Andrew
Langan of Kirkland & Ellis Chicago
headquarters is heading up BPs litiga-
tion team, alongside fellow Kirkland
partner Richard Godfrey.
A regular feature in leading lawyer
rankings, Langan is a class action spe-
cialist with 30 years of experience in
the field, and has regularly represented
major corporate clients in high-profile
trials.
BP is also fielding lawyers from a
roster of other leading US firms,
including lead trial counsel Mike Brock
of Covington & Burlington, and
Washington firm WilmerHale defend-
ing against criminal claims.
The Plaintiffs Steering Committee is
being represented by a 15-strong
team of lawyers selected by federal
judge Carl Barbier, who is hearing the
case in New Orleans. They include
high-profile California litigation lawyer
Elisabeth Cabraser, who also repre-
sented plaintiffs following the Exxon
Valdez oil spill in 1989.
MEET THE LAWYERS
ANDREW LANGAN
KIRKLAND &
ELLIS
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ALL eyes were on Nokia yesterday morn-
ing, as delegates at the Mobile World
Congress in Barcelona waited with
bated breath for its latest release. Some
were hoping for a long-rumoured tablet,
which never materialised.
What we got was a cheaper handset
in Nokias Lumia range, the 610. Its a
solid enough device, with enough
curves to look nice without
stealing the limelight from
its premium siblings the
800 and 900. But Nokia had
an Apple moment up its
sleeve. Just one more
thing... That thing was the
PureView 808, a multimedia
oriented phone with a frankly
baffling 41 mega pixel cam-
era. The demo was incredi-
ble, picking up detail
that shouldnt be
possible on a phone.
Nokia is now the
best player in the AV
market by a country
mile. The question is: will
anyone buy it?
Panasonic marked its return to the
mobile industry with the launch of the
bizarrely-named Eluga. The handset is
slick without being jaw-dropping ele-
gant but dull sums it up quite nicely. It
is let down by a cheap-looking plastic
back, although the fact it is waterproof
is quite neat.
LG has, as expected, stuck to it 3D
guns, with a more powerful version of
its Optimus handset, the Max. It looks
good and the 3D is impressive but you
cant help but feel LG has backed the
wrong horse there just doesnt appear
to be a market for 3D handsets. LG did,
however, show off something more
impressive: the Vu.
Similar in appearance and size to the
Galaxy Note (O2 chief executive Ronan
Dunnes favourite phone aside from
his iPhone, he tells me), LG is market-
ing it to customers who use reading
apps a lot.
The Note has been a good seller
for Samsung and this offering
from LG could be its way into
this growing niche.
Huawei would have
won the prize for
most ostentatious
stall, with a swoop-
ing video screen
underfoot and an
action movie sound-
track blasting from
speakers. It was demon-
strating the new Ascend D
Quad the fastest phone in
the world, if you take its word
for it. And it is very fast indeed.
Samsungs big release was the
Galaxy Beam, a phone with a built-in
projector that can beam a 50 inch
image onto your wall. Gimmick?
Definitely. But its still very cool.
Clockwise from top: Huawei Ascend D;
Nokia Pureview 808; Samsung Beam.
Mobile World Congress
12
The new kids
Steve Dinneen looks at the latest phones
coming out of the Barcelona trade show
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CAORINNA BRIDGES
FRIENDS LIFE
If someone stole your phone,
couldnt they could just use it?
It would be like losing every-
thing at once. I guess it could
work, but I think most peo-
ple would rather have
things separate.
PAUL CLIFFORD
SCHRODERS
It has been in the pipeline for
ages, so I cannot see why
they have not done it
sooner. It is a great idea,
you dont have to use
your card it makes
perfect sense..
CITY VIEWS: IS PAYING WITH YOUR MOBILE PHONE
THE NEXT BIG THING? Interviews by Caolan Cosgrove
VODAFONE chief executive Vittorio
Colao yesterday said pressure from
regulators could strangle investment
in the mobile industry and leave
Europe floundering behind the US.
He said radical reform of the auto-
pilot regulation facing European
operators could be the difference
between the industry returning to
growth or starting a downward spiral
that could see Europe become a sec-
ond-rate mobile environment.
He pointed to areas such as the
complicated auction processes for
mobile spectrum the lifeblood of
this industry in which the radio
waves on which mobile signals are
carried are split up in 600 different
ways. He was also scathing of the
decision to slash mobile termination
rates (MTRs) the fee applied for con-
necting to a rival network saying the
benefit to consumers in negligible
but the impact on operators
severe.
He said: [Regulators]
should focus more on the
long-term future of the indus-
try. The question is do you
want employment and
investment or are you
only interested in
price?
The UK risks
falling behind in
mobile invest-
ment. If regu-
lation was relaxed we would definite-
ly invest more. Without a doubt.
We are looking now at either a
heaven scenario or a negative one. If
it is heaven, we can stop the decline in
revenues and start to grow again. We
can offer the same sort of service in
Europe as we see in the US.
The worst scenario is we continue
to be regulated and lose 300m or
500m and were forced to strip
investment to a minimum.
Colao said there is a wider argu-
ment for encouraging growth in the
telecoms industry, with economies
seeing a disproportionate rise in
growth for every pound invested in
telecoms.
The chief executive of the worlds
largest mobile network by revenue
said his attitude towards so-called
over the top players companies
such as Skype that use mobile net-
works to run competing communica-
tions services has softened as more
competition has entered the market.
He said over the top players drive
data usage, which now accounts
for 15 per cent of Vodafones rev-
enues, but added they must add
value to the mobile environ-
ment if they expect to benefit
from operators invest-
ment in infra-
structure.
Vodafone boss
Vittorio Colao hit out
at auto-pilot reg-
ulation
Vodafone CEO
in broadside
at regulators
BY STEVE DINNEEN IN BARCELONA
TELECOMS
MOBILE payments were top of the

agenda at Mobile World Congress yes-
terday, with the telecoms industrys
biggest players scrabbling to become
the gatekeepers to consumer spending.
Vodafone announced a tie-up with
Visa to allow customers to pay for
goods by swiping their phones instead
of paying by card or cash.
The scheme, which will be available
to all of Vodafones 400m consumer
base, will be the biggest of its kind in
the world. It will initially be pre-pay-
ment only rather than linked directly
to a current account and will launch
in the UK this year. O2 owner
Telefonica has been working with Visa
on a similar system.
Vodafone chief executive Vittorio
Colao said his companys scheme will
become the standard if the technology
is the best: Its all about competition,
he said. Consumers will decide.
Another project was announced yes-
terday by US players AT&T, T-Mobile
and Verizon, who will partner with
Chase, Capital One and Barclaycard to
offer a mobile payment system to com-
pete with Google Wallet.
Googles Eric Schmidt will talk at
MWC today but City A.M. understands
he will not give more details about the
rollout of Google Wallet in Europe.
Mobile payments dominate
agenda as rivals line up plans
BY STEVE DINNEEN IN BARCELONA
TECHNOLOGY
Mobile World Congress

13
Launched:
May 2011
Available on:
Samsung Tocco
Samsung Wave 578
Launched:
February 2012
Available on:
Androids
latest handsets
The battle for mobile payment services
SHARES in Primark-owner Associated
British Foods dipped yesterday despite
an upbeat outlook from the firm, after
it admitted sales growth at its dis-
count fashion cash cow had slowed in
recent months.
The company said it expected like-
for-like sales at Primark to have grown
by two per cent in the first six months
of its financial year, down from three
per cent last year and undershooting
consensus estimates.
It said margins at the retailer would
have been hit as it chose not to pass ris-
ing cotton costs on to its customers
late last year, but that this should
rebalance in the second half as prices
have now fallen.
Primark performed strongly and
well head of the high street, we are cer-
tainly not flagging a slowdown, said
finance director John Bason.
Across all its business lines, which
range from clothing to agriculture via
grocery brands, AB Foods said it
expects interim results to be in line
with forecasts, with each of its seg-
ments delivering growth.
It credited a strong performance in
its sugar business for driving operat-
ing profit growth that it expects to
come in ahead of last year. Though it
said revenues will rise in its grocery
division, restructuring costs at busi-
ness in Australia and the US mean that
profits will be substantially lower.
Shares in the company dipped
below 1,190p in early trading before
recovering slightly to close 1.56 per
cent down at 1,200p.
AB Foods hit
as Primark
growth slows
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BY ELIZABETH FOURNIER
RETAIL
News
ANALYST VIEWS: WHATS THE OUTLOOK FOR AB FOODS? By Elizabeth Fournier
DARREN SHIRLEY | SHORE CAP

We do not anticipate any material
changes to group forecasts post todays update,
though given the breadth of ABFs operations
we would not be surprised if we tweak division-
al forecasts post speaking to management. We
commenced 2012 with ABF our preferred
stock of the FTSE 100 food producers ...
we continue to remain positive.
MARTIN DEBOO | INVESTEC

We read this update as fairly neutral
for both our and consensus forecasts. The big
picture remains unchanged to our eyes: rampant
sugars, resilient Primark and stuttering grocery
and ingredients. Relative to our expectations,
sugars looks set to surprise us positively again.
Grocery looks set to disappoint, on the
back of further restructuring charges.
ANDREW WOOD | SANFORD C BERNSTEIN

Grocery and ingredients appear to be struggling in the first half and, while Primark growth is good in a diffi-
cult environment, first half like-for-like growth and reported sales growth are both below expectations. Given
these factors, plus the stocks outperformance vs. the market year to date (+2 per cent) when all of its European
Food peers have under-performed, we expect a somewhat subdued and slightly negative reaction to this update.
Sugar profits are boosting George Westons Associated British Foods

ANALYSIS l Associated British Foods
p
1,220
1,210
1,200
1,190
1,180
1,230
1,200.00
27 Feb
LK Bennett boosted by
international expansion
LK BENNETT, the upmarket wom-
enswear brand, has shrugged off the
economic gloom to report a 17 per
cent rise in full-year profits to 54.6m.
The retailer, which runs 107 shops
in the UK and 40 in Europe and US,
said excellent growth in internet
sales and a strong expansion overseas
had helped drive sales up 18 per cent
to 44m for the year to 30 July.
LK Bennett is majority owned by
Sirius Equity and Phoenix Equity
Partners, who bought a stake in the
retailer from its founder Linda
Bennett in 2008 for 100m.
The brand has been rapidly expand-
ing its presence in the US, where it
now has five stores and eight conces-
sions and is looking to break into
Middle Eastern and Asian markets
after launching its first store in Dubai
in October.
Robert Bensoussan, LK Bennetts
chairman and co-founder of Sirius,
said: the strong British heritage of
our brand travels well and the diversi-
fication of our product range across
clothing, shoes, bags and accessories
has ensured we are trading well in all
our new markets.
RETAIL
FOR MORE NEWS

@
www.cityam.com
15
The Capitalist
TAKING the Citys love of yachts to
the next level, online foreign
exchange trading services group
Alpari has set sail with a global
boating competition, the newly-
named Alpari World Match Racing
Tour.
Co-captains Jim OToole, chief
executive of the tournament, and
David Stuart, chief operating offi-
cer of Alpari, announced the part-
nership yesterday alongside a
bespoke 3D street art depiction of
two sailing yachts racing for the
finish line.
Stuart said while riding the
chalky waves: The tour appeals to
an international audience and
specifically to people who are
ambitious and self-motivated.
These are essential attributes of
successful traders.
The multi-million dollar partner-
ship expresses Alparis plans for
global expansion, and anchors will
aweigh in Germany on 23 May. The
tour will then make its way around
South Korea, Sweden, Chicago,
Portugal, Switzerland, France and
Bermuda, closing the yachting
year in Malaysia this December.
British boaters Ben Ainslie, the
Olympic gold medallist, and Ian
Williams won the $1.75m prize pot
in 2010 and 2011 respectively.
The contract names Alpari as the
tournaments sponsor for the next
five years so we hope its plain
sailing from here.
ALPARI BACKS SAILING SERIES
Forex trading group Alpari will put the wind behind the sails of the World Match Racing Tour in a multi-million dollar deal
WITTY VODAFONE CHIEF
BRINGS THE HOUSE DOWN
VODAFONE almost brought the house down yesterday.
Not with an announcement, you understand: literally.
During a press conference with chief executive
Vittorio Colao, the Vodafone stall was stormed by secu-
rity and everybody ordered to evacuate.
Outside a crowd had gathered to gawp at the side of
the two storey structure, which had bulged open and
looked set to collapse. As forklift trucks hurried to the
scene, the unflappable executive suggested the session
should carry on in the street outside. He had already
earned the biggest laugh of the conference when he
revealed 63 per cent of people would give up chocolate
for a week before giving up their phones, with 33 per
cent saying they would forgo sex.
HISCOX SETS HIGH TARGET
FOR HIS BRAINY BUNCH
SMUG faces on the board of the insurance group
Hiscox as chairman Robert Hiscox announces his
retirement after 47 years: I have always aimed to
employ people brighter than I am I am convinced
that the current top executives prove that I have
achieved my employment ambition. So take a bow,
directors Bronek Masojada, Stuart Bridges and Robert
Childs, all members of this uber-brainy team. But they
cant rest on their laurels. Hiscox tells The Capitalist he
has set lofty targets for his successors to meet. I used
to say that I wanted to be in the top ten in the UK
before I retire. Now I believe top ten in the world
before I die. No need to worry, theyve got a while: I
intend to live for a very long time, he quickly adds.
Got A Story? Email thecapitalist@cityam.com
BRITISH industrial materials group
Cookson said its increasing exposure
to developing markets would fuel
growth in 2012, surprising the market
which had looked for sales to stay flat
mainly due to sluggish Europe.
Cookson, whose products are used
in the glass and solar industries, yester-
day forecast mid-single digit growth
for 2012, after reporting a better-than-
expected 18 per cent increase in 2011
pre-tax profit.
For 2011, Cookson reported pre-tax
profit of 261.5m, beating consensus
estimates of 250.8m. Sales rose 11 per
cent to 2.83bn.
BUSINESS supplies distributor Bunzl
showed its recession-proof qualities
with a greater-than-expected 11 per
cent rise in yearly pre-tax profit yester-
day, boosting its already outperform-
ing shares to a record high.
FTSE 100-listed Bunzl, which sup-
plies supermarkets, hospitals and
hotels with products ranging from
carrier bags to toilet rolls, reported a
2011 pre-tax profit of 306.1m on
sales six per cent higher at 5.11bn.
The group, which operates in 23
countries and serves clients such as
John Lewis and Selfridges, said rev-
enue in continental Europe and in
the companys largest market, North
America, grew seven and 12 per cent,
respectively, offsetting a one per cent
fall in Britain and Ireland.
We delivered organic growth of
four per cent last year, our highest
rate since 2006, thanks to winning
new business and seeing existing cus-
tomers doing more business with us,
Bunzl chief executive Michael Roney
said yesterday.
An improving US economy helped
us grow there, but tough macro con-
ditions have dragged growth in the
UK and Ireland. Its hard to predict
numbers ... but I believe we [will] con-
tinue to grow at the rate we have in
recent years in 2012, despite the per-
sistently challenging macro environ-
ment.
The company, which has in recent
years made two-thirds of its growth
through takeovers, said it spent
185m on acquisitions last year, bring-
ing in an additional 200m of sales.
Shares in Bunzl, which have risen
seven per cent in the last month, hit a
record 958p early yesterday before set-
tling at 952p, valuing the group at
almost 3.1bn.
Bunzl shares
at record high
as profits rise
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GENERAL Motors is in advanced dis-
cussions to buy a small stake in
French carmaker PSA Peugeot
Citroen as part of their proposed
strategic alliance in Europe, sources
familiar with the situation said yes-
terday.
Under the terms being discussed,
GM would likely buy a stake of less
than five per cent in Peugeot, the
sources said.
A deal could be announced in the
next few days, although sources
warned that no deal has been
reached and talks could still fall
apart.
GM looks to buy
stake in Peugeot
Cookson looks
abroad to grow
BY HARRY BANKS
SUPPORT SERVICES
INDUSTRIALS
TRANSPORT
News
Hoare Govetts larger clients look poachable
J
EFFERIES Group, the global
investment firm that has picked
up the Hoare Govett name and
around 50 of its remaining
employees, has done a good job in
hanging on to many of the firms
stars.
So, corporate advisers like Paul
Nicholls and Chris Zeal have made
the move across to the new firm, as
has Stephen Ford, who is widely
described as the firms best salesman.
Fords move in particular is a big deal
because for a few days he was widely
rumoured to be shunning the move
but he went eventually, consolidat-
ing the firm in the small- to medium-
cap sector in which he specialises.
Where rivals think Jefferies might
be vulnerable is in keeping some of
Hoare Govetts larger FTSE clients.
Despite its troubled period under
the ownership of RBS, Hoare Govett
managed to retain a number of big
clients, such as BAE Systems, Rexam,
Tate & Lyle, Rolls-Royce and RBS itself.
Some clients have already left the
franchise, such as Tullow Oil, which
recently moved its brokership to
Morgan Stanley and Barclays Capital,
one of the many banks hoping to
gain from all the uncertainty at
Hoare Govett.
Another client, G4S, is expected to
have a change of adviser any day now
after the failure last year of the
groups highly ambitious tilt at buy-
ing ISS.
Rivals say that Jefferies focus in
selecting people from Hoare Govett
has not necessarily been at the high-
er end of the value chain. Some of
the sales teams that serviced the big-
ger clients have not moved across.
And some research stars, such as
John Messenger in building, and
Tony Shiret in retail, have not made
the move.
Jefferies is adamant that its strate-
gy does not involve exiting from
advising its bigger clients. It already
employs analysts like Mike Betts, who
covers a similar space to Messenger,
and James Grzinic, who trades his
wares is in the same sphere as Shiret.
But the feeling among its rivals is
that its newly acquired FTSE 100
clients (it did not have any of its own
pre the Hoare Govett acquisition) are
especially vulnerable to being
poached by larger banks, which can
offer a balance sheet and a fully-
fledged sales and research team
aimed at the blue-chips.
These things happen slowly,
though, with brokerships often
sticky. Were not going to make a
move just yet, said one rival. But
make no mistake, there will be a
push to win some of those clients in
time.
david.hellier@cityam.com
Follow me on Twitter: @hellierd
INSIDE TRACK
DAVID HELLIER
ANALYSIS l Bunzl
p
950
940
930
920
910
960
952.00
27 Feb
COMPUTER memory chip maker
Elpida filed for chapter eleven protec-
tion from creditors yesterday with
448bn yen (3.5bn) in debt one of the
biggest bankruptcy filings ever by a
Japanese manufacturer.
The company, which makes DRAM
(dynamic random-access memory)
chips used in traditional computers,
has taken a hit since consumers have
turned their eyes to tablets, which are
less reliant on DRAM chips.
Elpida has made a net loss for the
last six quarters, blaming floods in
Thailand and the record strong yen as
well as rising competition.
ANY hopes that Olympus was ready to
move on from a $1.7bn (1.07bn)
accounting scandal were dashed yes-
terday after a raft of boardroom hir-
ings sparked fresh criticism.
The Japanese maker of cameras and
medical equipment said it had nomi-
nated an insider, executive officer
Hiroyuki Sasa, to become president
and former banker Yasuyuki Kimoto
as chairman, subject to approval at its
shareholders meeting on 20 April.
Kimoto was previously an executive at
Sumitomo Mitsui Banking Corp
(SMBC), Olympus main lender.
The firm, which is thought to be
considering a capital raising, also
nominated as a board member
Hideaki Fujizuka, a former executive
of Bank of Tokyo-Mitsubishi UFJ, which
is another Olympus creditor.
The move prompted anger at
Southeastern Asset Management, one
of the largest foreign investors in
Olympus, as well as with Michael
Woodford, the British former chief
executive who was sacked after acting
as whistleblower.
Josh Shores, senior analyst and prin-
cipal at Southeastern, said he was
extremely disappointed.
Woodford told City A.M. the appoint-
ments were wrong given that
Olympus is still being investigated in
Japan, the US and Britain. Earlier he
said: Looking at capital raising, to
have a representative of the bank
there as the chairman will only frus-
trate and alienate any independent
foreign shareholder.
Olympus said the new 11-person
board would include six outside direc-
tors, more than the current three.
None of the existing board members
have been re-nominated.
SMBC could not be contacted last
night and its UK subsidiary declined to
comment.
Dismay over
new line-up
at Olympus
Brewin Dolphin v Rathbones
the City Slam
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venue: the hac, city road, ec1y 2bq
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Elpida is filing
for bankruptcy
BY PETER EDWARDS
TECHNOLOGY
TECHNOLOGY
HOUSEBUILDER Bovis Homes reported

a 74 per cent jump in profit yesterday
and predicted a strong 2012 from its
focus on the relatively buoyant market
for family homes in the affluent south
of England.
It was a great year in terms of driv-
ing profitability back through the
business ... and we are expecting a sta-
ble market to drive our profitability
significantly forward in 2012, chief
executive David Ritchie said.
We are expecting to see yet again
the positive compound effect of a
greater number of houses sold at a
higher average selling price than the
previous year and at a stronger mar-
gin.
Bovis said it expected to have 75 per
cent of its sales outlets in the south by
the end of 2012, compared with 60 per
cent at the beginning of the year.
The company predicted market con-
ditions would still be tough in 2012
because of continued economic uncer-
tainty in Britain but said it hoped a
new government-backed mortgage
indemnity scheme would help more
first-time buyers get on the property
ladder.
It reported a pre-tax profit of
32.1m in 2011, up from 18.5m a year
earlier and narrowly beating a firm-
supplied analyst poll of 31.1m.
Housebuilder Bovis hunts for
growth in south as profits rise
PROPERTY
Former boss Michael Woodford is taking Olympus to employment tribunal Picture: GETTY
News
ASDA has poached John Lewis exec
Richard Mayfield to fill the role of
chief financial officer.
Mayfield, director of partnership
services at John Lewis, is to join the
retail giant in the summer, replacing
acting CFO Rob McWilliam, who is
moving to parent firm Wal-Mart as a
strategy director.
Before working for John Lewis,
Mayfield held roles at Ernst & Young,
LEK and House of Fraser.
John Lewis just two weeks ago
announced that an outsider, Helen
Weir, would be brought in to fill its
own vacancy for a finance director.
Asda takes on
John Lewis exec
TECHNOLOGY
ANALYSIS l Olympus Corp

JPY
1,450
1,400
1,350
1,300
1,500
1,373
27 Feb
THIS will be the year that digital rev-
enues overtake traditional sales at
Pearson, which grew pre-tax profits 72
per cent on an unadjusted basis to
1.16bn in fiscal 2011.
Pearson, the educational services
group that owns Penguin and the
Financial Times, beat market expecta-
tions and its own forecasts to report
adjusted earnings per share of 86.5p
and raised its dividend by nine per
cent to 42p.
Adjusted sales were up one per cent
to 5.86bn while adjusted operating
profit grew seven per cent to 942m.
Pearson said it rolled in 2bn from
digital sales an 18 per cent increase
on the previous year, making the sec-
tor accountable for a third of the
groups sales.
It credited strong e-book downloads
of Penguin bestsellers and the FTs
iPad app, as well as the 43m students
enrolled on learning programmes.
Despite refusing to deny that talks
about selling the FT have taken place,
Pearson chief executive Marjorie
Scardino said: The FT is not for sale,
[it] is a very valuable part of Pearson,
we are investing in it and we are very
happy.
Shares, which have climbed 20 per
cent in the last year, dropped 3.8 per
cent to 12.04 yesterday.
Digital spurs
Pearson past
expectations
BY LAUREN DAVIDSON
MEDIA
ADVERTISING spending is set to climb

by 4.9 per cent to $465.5bn (293.7bn)
this year following a 3.8 per cent
growth in 2011, according to Strategy
Analytics.
Although UK advertising will out-
perform Europe, it will likely lag
behind the global rate as it is expected
to rise 4.2 per cent to $20.9bn.
But this will be a big improvement
on 2011s growth of 1.4 per cent.
The strong outlook for the sector is
propelled by major global-impact
events led by the Olympics, the US
Presidential Elections and the
European Football Championships,
according to Strategy Analytics direc-
tor Ed Barton.
The UK market should see growth
across all sectors, led by online adver-
tising which is expected to grow by
10.6 per cent to $7.6bn.
Global advertising spend to rise
thanks to Olympics and Obama
MEDIA
DIGITAL sports media group

Perform has reinforced its position
in South American football by
extending its deal with rights
agency Full Play Group.
The three-and-a-half year partner-
ship will add 900 South American
football matches to Performs port-
folio, including the top games in
Bolivia, Ecuador, Uruguay, Paraguay
and Peru as well as the Brazilian,
Chilean and Mexican leagues.
Perform will now show over 1,800
matches a year from the Americas
across its services.
Building on Performs current
relationship with Full Play, which
gives the digital sports media group
rights to the Fifa World Cup qualify-
ing matches under the South
American football association CON-
MEBOL, the new deal will also give
Perform access to the Gillette Brazil
World Tour and other Full Play
managed sports rights in the
Americas.
Full Play chief executive Mariano
Jinkis said: We view Perform as the
worlds leading sports digital media
expert.
Performs shares rose 4.4 per cent
to close at 282p following the
announcement.
Perform wins further rights
for South American football
BY LAUREN DAVIDSON
MEDIA
News
ANALYSIS l Pearson
p
1,250
1,240
1,230
1,220
1,200
1,210
1,190
1,260
1,204.00
27 Feb
ROUTEMASTER RETURNS TO LONDON
THE FIRST of a new fleet of London buses to draw inspiration from the classic Routemaster
design hit the streets yesterday on the 38 route between Victoria and Hackney. The bus, built
by Northern Irish group Wrightbus, is the first of eight prototypes expected to be in service
by the end of May. London Mayor Boris Johnson claimed yesterday the bus was twice as
fuel efficient as a diesel bus and the most environment-friendly of its kind. Picture: PA
THE ECONOMY showed hints of
recovery in the last three months,
according to an influential survey
of the vital services industry pub-
lished today.
Business volumes did fall in the
quarter, according to the
Confederation of British
Industrys (CBI) services sector sur-
vey but at a slower rate than in
the previous three months.
In consumer services, a balance
of 25 per cent of firms said busi-
ness volumes fell over the period
an improvement from the 41 per
cent in Novembers survey who
suffered falling business.
For firms in business and pro-
fessional services, that balance
stood at 11 per cent, worse than
the six per cent seen in November
though respondents expect con-
ditions to worsen more slowly
again in the next three months.
Employment growth held up in
the professional services sector,
with a net balance of 10 per cent
reporting jobs growth, and a bal-
ance of eight per cent expecting to
increase headcount in the coming
three months.
Although volumes of business
activity continued to worsen
across the UK services sector in
the past quarter compared with
the previous quarter, there are
some tentative signs that condi-
tions may be levelling out, said
the CBIs Ian McCafferty.
Business confidence remains
fragile, and will continue to be so
given the continuing uncertainty
in the Eurozone. However, there
are some signs that after the very
sharp fall in confidence at the
height of the crisis last autumn,
sentiment is stabilising.
CBI: Service sector
shows signs of life
BY TIM WALLACE
UK ECONOMY
CHAIRMEN and non-executive

directors are strongly opposed to
the idea of new quotas on the pro-
portion of women in the board-
room, a survey revealed yesterday.
Fewer than one in 18 chairmen
believe a quota would be helpful,
the survey claims, while seven in 10
directors say it would either make
no difference to the firms perform-
ance, or make it worse.
The survey showed a stark differ-
ence in the popularity of quotas
between men and women. Nearly
45 per cent of female board
directors said that quotas
would be helpful, compared
to just 4.02 per cent of male
directors who felt the same
way.
The onus is on firms to
encourage more women onto
boards, according to Ken
Brotherston from private
equity recruiter Directorbank,
which helped conduct the
research.
Its hard to believe that in
a country thats home to 32m
women, we should need leg-
islation and quo-
tas to find anoth-
er 100 senior
women capable
of filling board-
level roles in the
FTSE 100, said
Brotherston.
If companies
dont want to be
mi cromanaged
and dictated to by
government, they
need to do more to
solve the problem
themselves.
Male non-executives are opposed
to quota for women in boardroom
CORPORATE GOVERNANCE
News
NEWS | IN BRIEF
Small firms cut hiring plans
Most small firms will cut back on new
jobs this year compared with last year,
according to research out today from
Huddlebuy. The survey found 59 per
cent of small businesses expect to hire
fewer staff in 2012 than 2011 and 36
per cent will not be creating any jobs at
all. The small business engine simply
cannot fire on all cylinders when it is
getting hammered by high taxes, greedy
suppliers, oppressive employment regu-
lation and poor trading conditions, said
Huddlebuy boss Saurav Chopra. This is
the clearest indication yet that small
business are struggling to create the
jobs that we need to get the economy
moving this year.
Portugal set to get bailout nod
Portugal will today present the results
of the third troika review of its per-
formance under a 78bn bailout and is
expected to glean high marks for eco-
nomic reform and cost-cutting efforts.
European Union, European Central Bank
and IMF officials have spent about two
weeks in Lisbon carrying out the review
and are likely to give a positive assess-
ment, approving payment of the next
14bn tranche of the bailout. An
increasing number of economists say
Portugal may need more emergency
funding or even be forced eventually to
restructure its debts like Athens, but the
government has ruled that out.
REPORT: EU DRIVES UP FOOD PRICES
The EUs farming subsidies push up food prices and push down production, according to
a report out today from the Institute for Economic Affairs. The Common Agricultural
Policys budget stands at 55bn (46.5bn) this year and is set to hit 63bn by 2020, sup-
porting inefficient farms and increasing land prices, the IEA said. Picture: GETTY
HOUSE prices in the UK have plum-
meted by a third, in real terms, since
the middle of 2007, according to fig-
ures released this morning.
Although prices declined by a
modest one per cent last year, the
overall drop since the credit crunch
is even sharper than in Spain, where
prices are down 27 per cent, the
report said.
Real house prices in the UK have
fallen by a third over the past four
years, due to a combination of a weak
housing market and general price
inflation, commented Professor
Michael Ball, who authored the
research for the Royal Institution of
Chartered Surveyors.
This has been one of the largest
declines in Europe and will help to
underpin housing market recovery
once economic growth picks up
again.
Huge variations in house price
movements throughout Europe were
recorded last year.
House prices in Ireland and Spain
collapsed by a further 17 per cent and
10 per cent respectively, according to
data released this morning.
Yet price hikes of five per cent or
more were recorded in Germany,
France, Switzerland and Norway.
RICS said that the UK was balanced
in the middle with a one per cent
decline in house prices.
A notable change across Europe
since 2007 has been the dramatic
decline in homes being built, RICS
said. During this period, the UK saw
a 42 per cent fall in residential build-
ing permits being granted, roughly
in line with the European average.
House prices down
by one third in four
years after inflation
BY JULIAN HARRIS
PROPERTY
ANALYSIS l Volumes fell in the last 3 months

Consumer services
Professional/business
services
Nov
2010
Feb
2011
May
2011
Aug
2011
Nov
2011
Feb
2012
20
10
0
-10
-20
-30
-40
-50
%Balance
DLA Piper
The law firm yesterday made intellectu-
al property lawyer and patent specialist
Robynne Sanders a partner. Sanders
was most recently a director of
Watermark Intellectual Property
Lawyers and joins DLA Pipers
Melbourne office.
Anesco
The renewable energy solutions firm
has appointed Steve Shine OBE as
chairman. Shine, who was awarded
an OBE in June 2010 for his services
to the energy and water industry, will
be standing down from his role as
chief operating officer at Thames
Water at the end of March.
Interim Partners
Interim Partners, which provides interim
managers to the private sector, has
appointed Charles Geoghegan as head of
banking in its financial services team. He
will be working with new and existing
retail and commercial banking clients,
including HSBC, Virgin Money, RBS, and
One Savings Bank, along with the
Financial Services Authority and the
Bank of England. His career has included
positions at Deutsche Bank, JP Morgan
and Albemarle Interim Management.
Vestra Wealth
Independent wealth management firm
Vestra Wealth has hired Jacqueline
Crawley and Miles Berryman as invest-
ment managers. Both join the London
office from BNP Paribas. Crawley was
most recently a senior wealth manager,
with client portfolios of over 300m.
Berryman has over 20 years experience
in private client wealth management.
Graydon UK
Commercial credit reference agency
Graydon UK has appointed Alexander
Schwendtner as managing director.
Schwendtner joins the firm from
Stream Live Limited. Prior to that he
was product development director for
Emap.
Cazenove Capital
James Gladstone has been hired as
director of financial planning. He will
report to David Austin, head of finan-
cial planning. Gladstone was head of
UK financial planning and an execu-
tive director at UBS Wealth
Management.
CITY MOVES | WHOS SWITCHING JOBS Edited by Jenny Forsyth
+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
S&P at its highest
since mid-2008
T
HE benchmark S&P 500 closed
at its highest level since mid-
2008 yesterday, extending gains
for a third session as oil prices
retreated after a recent rally and data
showed further improvement in the
US housing market.
The S&P and the Nasdaq both eked
out gains, while the Dow closed bare-
ly lower.
An industry group reported that
contracts for home resales hit a near
two-year high in January, lifting the
Dow Jones home construction index
1.50 per cent, while the PHLX housing
sector index rose 1.19 per cent.
A drop of about one per cent in the
price of oil relieved concerns that
high energy prices could hurt the
still-fragile economic recovery. Brent
crude ended at $124.17, down $1.30.
Anything above $120 to $130 is
clearly the level at which the global
economy is going to have a hard time
growing at a pace that is consistent
with a very robust rate of growth,
said Natalie Trunow, chief investment
officer of equities at Calvert
Investment Management in Bethesda,
Maryland.
The S&P 500 has rallied nine per
cent since the start of the year. It rose
as high as 1,371.94 yesterday, its high-
est level since June 2008 and topping
the previous mark of 1,370.58, a key
resistance point, before paring gains.
The Dow Jones industrial average
was down 1.44 points, or 0.01 per
cent, at 12,981.51. The Standard &
Poors 500 Index was up 1.85 points,
or 0.14 per cent, at 1,367.59.
The Nasdaq Composite Index was
up 2.41 points, or 0.08 per cent, at
2,966.16.
Though the S&P 500 retreated from
the days high, it still marked its high-
est close since June 2008.
Oils recent rally has been driven
by worries over disruptions to Middle
East supplies due to sanctions against
Iran. Energy companies fell with oil
prices. Shares of Exxon Mobil ended
down 0.1 per cent at $87.23.
The fourth-quarter earnings period
is in the final stretch.
As of yesterday, 468 S&P 500 compa-
nies had reported results, with 63 per
cent beating analyst expectations.
Yesterday, Lowes Cos, the worlds
second-largest home improvement
chain, reported higher-than-expected
quarterly sales, and its shares rose 0.7
per cent to $27.34.
Biotech stocks fell after Dendreon
said demand was soft for its high-
priced Provenge prostate cancer treat-
ment as the year began, and it
forecast low-single-digit sales growth
in the first quarter. It slumped 20.5
percent to $11.81.
B
RITAINS leading share index
ended lower yesterday, pres-
sured by weakness in banking
issues after international lead-
ers said more money was needed
from Europe to help ease the regions
debt crisis, and with heavyweight
HSBC falling after its results.
Eurozone countries pledged at a
meeting of finance leaders of G20
economic powers on Sunday to
reassess the strength of their bailout
fund next month, reminding
investors the debt crisis is far from
over.
Banks bore the brunt of the blue-
chip selling, unsettled by the G20
statement and having already been
forced to take a significant haircut on
Greek debt.
HSBC was the worst off, down 3.7
per cent, as Europes biggest bank
posted a $21.9bn (13.8bn) profit for
2011, the best outturn by a western
bank so far, but below expectations
for more than $22bn.
Standard Chartered shed 1.6 per
cent, with the emerging markets-
focused lender due to close out the
sector reporting season with full-year
numbers tomorrow.
State-owned Lloyds Banking Group
and Royal Bank of Scotland, which
both revealed massive full-year losses
last week, fell 2.3 per cent and 2.1 per
cent respectively.
Lloyds and RBS both bailed out by
the taxpayer may access the
European Central Banks three-year,
low-interest loans facility this week,
according to reports yesterday.
At the close, the FTSE 100 index
was down 19.58 points, or 0.3 per cent
at 5,915.55, though it rallied late on
to recapture the 5,900 level relin-
quished earlier in the session.
The FTSE remains in the dol-
drums off the back of subdued trad-
ing, low volume and further euro
zone concerns, said Andrew Crook,
trader at Sucden Financial Private
Clients.
Even encouraging US monthly
home sales figures appear to be a case
of too little too late.
Miners staged a late turnaround in
London, in tandem with firmer metal
prices after US data, as demand hopes
were revived by the signs of strength
in the worlds biggest economy, with
copper up 0.2 per cent.
Integrated oils were also higher,
although crude prices stayed weak
after recent strength.
BP provided the main boost for the
sector, up 1.1 per cent, on hopes of a
more positive outcome for the oil
major after its Gulf of Mexico oil spill
trial was delayed to allow the firm to
try to cut a deal.
A batch of blue-chip corporate
news also provided some focus for
investors yesterday.
Bunzl was the top FTSE 100 gainer,
ahead 2.3 per cent and hitting a
record high after the packaging firm
posted a bigger-than-expected 11 per
cent rise in yearly pre-tax profit.
India-focused refiner and power
generator Essar Energy was the
biggest blue-chip faller, plunging 14.6
per cent as it missed full-year earn-
ings forecasts.
Mild selling is fine. In fact, selling
outweighing buying is a critical part
of any freely operating marketplace, a
characteristic that participants rely
upon for accurate valuations and the
ability to earn value, said David
White, trader at Spreadex.
If, as some analysts contest, 2012 is
a year of opportunity for global equi-
ties, any sustained ascent will invari-
ably include days like today that are
as inconvenient to the bulls as they
are essential to keep a strengthening
market in check.
HSBC leads banking shares
down despite bumper profit
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 Hammerson PLC
400
390
380
370
360
350
340
Dec Jan Feb
p
398.80
27 Feb
HAMMERSON
Deutsche Bank has maintained its buy rating on the property group and
raised its target price by 20p to 520p after consensus-beating results
from the company last week. The broker estimates that Hammerson will
deliver its planned dividend increase in 2012, and increases its earnings
per share outlook for 2012 and 2013. It does not see the groups net asset
value falling below 530p during the current year.
ANALYSIS l British American Tobacco PLC
3,150
3,100
3,200
3,050
3,000
2,950
2,900
Dec Jan Feb
p 3,159.00
27 Feb
BRITISH AMERICAN TOBACCO
Citi has raised its target price on the tobacco giant by 2.5 per cent to
33.30 and maintained its neutral outlook, saying results were pretty
much as expected, but included elements that the broker sees as impor-
tant for future years. Citi has raised its earnings per share forecast by
around 2.5 per cent, mostly due to a more optimistic outlook in
Western Europe over the second half of last year.
ANALYSIS l Marks And Spencer Group PLC
350
340
360
330
320
310
Dec Jan Feb
p
360.10
27 Feb
MARKS & SPENCER
UBS has upgraded the retailer from neutral to buy and upped its
share price from 325p to 410p, saying that if preliminary results in
May show positive signs on returns then the stock should react very
positively. The broker has nudged up its like-for-like sales projections
for 2012-13 from flat to +1 per cent, and upped its profits before tax
forecast by two per cent to 745m.
p
28Nov 16Dec 10Jan 17Feb 30Jan
6,000
5,400
5,200
5,600
5,800
ANALYSIS l FTSE
5,915.55
27 Feb
Berwin Leighton Paisner
BLP has hired Linklaters former global cor-
porate head David Barnes to its City corpo-
rate team. Barnes will join next month as a
partner in the firm's London corporate group
after retiring from Linklaters last summer.
Barnes left the magic circle firm after stand-
ing as one of five candidates for the senior
partner role in early 2011. He retired after
36 years at the firm, 26 of them as a part-
ner. His key clients there included BT, HSBC
and Sainsburys.
News
T
WO of Americas Republican candidates
Newt Gingrich and Ron Paul have
dared to toy with the idea of bringing
back the gold standard. Their remarks
have in turn triggered a fusillade of indignant
replies, from pundits and professional econo-
mists alike, the general theme of which is that
no one fit to be Americas Commander-in-
Chief can possibly have a good word to say
about gold.
Of all the reasons usually given for con-
demning the gold standard, perhaps the most
common is the claim that it was to blame for
the Great Depression. What responsible politi-
cian, golds critics ask rhetorically, wants to
relive the 1930s?
But the criticism misses its mark. Fans of the
gold standard are no more anxious to repeat
the 1930s than their critics are. Their nostalgia
is instead for the interval of exceptional inter-
national monetary stability that prevailed
from the mid-1870s until World War I. That
was the era of the classical gold standard a
standard policed by the citizens of participat-
ing countries, all of whom were able to convert
their nations paper money into gold.
This classical gold standard can have played
no part in the Great Depression for the simple
reason that it vanished during World War I,
when most participating central banks sus-
pended gold payments. (The US, which entered
the war late, settled for a temporary embargo
on gold exports.) Having cut their gold
anchors, the belligerent nations central banks
proceeded to run away, so that by the wars
end money stocks and price levels had risen
substantially, if not dramatically, throughout
the old gold standard zone.
Postwar sentiments ran strongly in favour of
restoring gold payments. Countries that had
inflated, therefore, faced a stark choice. To
make their gold reserves adequate to the task,
they could either permanently devalue their
currencies relative to gold and start new gold
standards on that basis, or they could try to
restore their currencies pre-war gold values,
though doing so would require severe defla-
tion. France and several other countries decid-
ed to devalue. America and Great Britain chose
the second path.
The decision taken by Winston Churchill,
then Britains chancellor of the exchequer, to
immediately restore the pre-war pound,
prompted John Maynard Keynes to ask, Why
did he do such a silly thing? The answer was
two-fold: first, Churchills advisers considered
a restored pound Londons best hope for
regaining its former status then already all
but lost to New York as the worlds financial
capital.
Second, Britain had other cards to play,
aimed at making its limited gold holdings go
further than usual. Primarily, it would con-
vince other countries to take part in a gold-
exchange standard, by using claims against
either the Bank of England or the Federal
Reserve in place of gold in international settle-
ments. It would also ask the Fed to help
improve Great Britains trade balance by pur-
suing an easy monetary policy.
The hitch was that the gold-exchange stan-
dard was extremely fragile: if any major partic-
ipant defected, the British-built house of cards
would come tumbling down, turning the
world financial system into one big smoulder-
ing ruin.
In the event, the fatal huffing and puffing
came then, as it has come several times since,
from France, which decided in 1927 to cash in
its then large pile of sterling chips. The Fed, in
turn, decided that pulling back the reins on a
runaway stock market was more important
than propping-up the pound. Soon other cen-
tral banks joined what became a mad scram-
ble for gold, in which Britain was the principal
loser. At long last, in September of 1931, the
pound was devalued. But by then it was too
late: the Great Depression, with its self-rein-
forcing rondos of failure and panic, was well
under way.
So the gold standard that failed so cata-
strophically in the 1930s wasnt the gold stan-
dard that some Republicans admire: it was the
cut-rate gold standard that Great Britain man-
aged to cobble together in the 20s a gold stan-
dard designed not to follow the rules of the
classical gold standard but to allow Great
Britain to break the old rules and get away
with it.
So does this mean that those Republican
candidates are right to pin Americas hopes on
a return to gold? Alas, it doesnt: the collapse
of the gold-exchange standard forever under-
mined the publics confidence in govern-
ments monetary promises; and absent such
confidence there can be no question of a cred-
ible, government-sponsored gold standard,
classical or otherwise. Sometimes with mone-
tary systems, as with life, you cant go home
again.
George Selgin is a professor of economics at the
University of Georgias Terry College of Business and a
senior fellow of the Cato Institute in Washington, DC.
22
The Forum
CITYA.M. 28 FEBRUARY 2012
Gold standard fans are not
nostalgic for the 1930s but
earlier, exceptional stability
Dont blame the Depression
on the gold standard but
dont expect it back either
cityam.com/forum
GEORGE SELGIN
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
23
The case for even
more businesses
to collaborate on
British campuses
Universities can
be powerhouses
of UK innovation
T
HE government is aiming high with the
publication of the Wilson Review today
a comprehensive report with the aim of
making the UK the best place in the
world for businesses and universities to work
together.
In the shadow of recommendations of how
the sector can best do this, familiar voices will
undoubtedly emerge intoning the same old
criticisms that universities are ivory towers
which contribute little to the UK economy, pro-
duce few tangible benefits and dampen the
spirit of entrepreneurs. Yet this is simply not a
true picture of how modern universities work.
There are also some in business and acade-
mia alike who are sceptical of the benefits that
collaboration can bring. Yet our universities
have been open for business for years, success-
fully commercialising intellectual property,
spinning out companies and supporting entre-
preneurs and small companies across the
country to grow.
Packed with research and innovation, our
universities are the key to innovating our way
back to recovery. In the very best, it is possible
to take new ideas, techniques, methods and
discoveries in one area and apply them direct-
ly to others. This is at the heart of innovation,
and every university can help the UK to build
an even stronger knowledge economy.
Our universities are world leaders we have
more in the worlds top ten than any other
country bar the US. This gives us a formidable
advantage in an increasingly cut-throat global
economy they offer massive repositories of
intellectual capital, chock full of experts spe-
cialising in research as diverse as nanotechnol-
ogy, engineering, manufacturing and
healthcare.
Properly commercialised, this research is
worth billions. Last year, for example, BioVex
a spin-out from University College London
was sold to an American pharmaceutical firm
for $1bn (631.31m), having started from just
an idea back in 1999. All our best universities
have the potential to be creating successful
companies like these.
If we are to become truly world leading,
then our universities ambition and scientific
innovation must be matched and supported by
the commercial world. We need the expertise
of businesses to ensure we truly recognise the
potential for innovation of each exciting new
research breakthrough while preserving its
academic value. We need, too, to look at
whether existing measures for capitalising
such new business opportunities are maximis-
ing the value of research to the economy. New
ways of doing business together will mean
reaping the full benefit of our world-class
research base.
A UK which is truly the best in the world for
collaboration between businesses and universi-
ties is simply not an option: it is imperative,
both to support our short-term economic
recovery and our long-term prosperity. The
world economy is changing, and there will be
winners and losers. To be winners, we need to
work together universities, investors, corpo-
rations and entrepreneurs to innovate and
reap dividends for all.
Professor Stephen Caddick is vice-provost (enter-
prise) at University College London.
Smart and simple
[Re: The energy policy paradox:
cheap tariffs for the savvy mean
higher bills for most, yesterday]
Will Straw is right to highlight
the unfair impact of predatory
pricing on all energy bill payers.
Ofgem clearly needs to look at
this issue, particularly as the
most vulnerable members of soci-
ety are likely to pay the highest
energy prices. As he correctly
says, greater competition in the
energy market is key to solving
this problem. However, the ener-
gy regulators wider plans to sim-
plify domestic energy tariffs
could actually undermine the abil-
ity of smaller, more innovative
energy suppliers to compete.
They also assume that small sup-
pliers can easily access wholesale
power products, a well-known
problem in the industry. The cur-
rent proposals risk closing the
door to innovative domestic tar-
iffs linked to smart meters, near-
by wind farms and the type of
energy source used to generate
electricity. Customers want these
products and they will become
increasingly important in coming
years. The energy regulator must
recognise that market simplifica-
tion and improved competition
require the preservation of any
innovation that is in the best
interest of consumers. Tariffs
should be simplified, but in a bal-
anced way that does not compro-
mise this.
Juliet Davenport, chief executive
and founder, Good Energy
RAPID RESPONSES
STEPHEN
CADDICK
BY ANTHONY J. EVANS
CITYA.M. 28 FEBRUARY 2012
The Forum
W
HEN my wife
was pregnant
last summer
we received a
100 voucher from the
government to ensure
she was eating enough
fruit and vegetables. She
already was eating
enough fruit and vegetables, but the money came in
handy for other things.
This is just one small example of how a well-inten-
tioned policy is a waste of public money. If such vouch-
ers could be targeted at people who needed them,
then perhaps they would do some good. But as a two-
income household we are lucky to be able to afford all
the apples and potatoes we could wish for.
Having said that, tax rises (including inflation) mean
we have less disposable income than we had last year
and like many families we are feeling the pinch. Which
makes our relationship with the state all the more
frustrating. Changes to various tax credits and bene-
fits make it hard to know whether one is better or
worse off.
For example, in April 2012 the threshold for child
tax credit will fall from 41,300 to around 26,000
(for one-child families). And while people on under
42,475 per year are entitled to 2,915 of tax-free
childcare vouchers per year, people earning more than
this now get just 1,484.
These changes reveal two things about the tax sys-
tem. The first is that it is too complex, because granti-
ng such allowances creates interest groups that are
hostile to their removal. But these giveaways are small
compared to the taxes that are paid. Its like someone
giving you a chocolate after kicking you in the crotch.
And resources get wasted when theyre passed from
families to government and then back again.
The second thing the changes reveal is that they
favour well-educated, middle class people. After a lot
of effort I was able to sign up the childcare voucher
scheme before the end of the 2011/12 tax year and
therefore remain eligible for the full allowance despite
exceeding the income threshold. This also shows why
the NHS is so popular with well-educated, middle class
people they are able to understand the system and
use it to their advantage. Its the people too busy to
look into these things that deserve our sympathy.
Although I do claim child benefit of 20.30 a week,
this is also a socially wasteful program. It does not
make sense that people in full time employment
should pay taxes only to receive some of that back as
benefits. For this reason I would not complain if people
like myself full time employed on a decent salary
lost some of their entitlements. Indeed it is because of
this principle that I dont spend more time attempting
to hire accountants and conduct the research that
would almost certainly be to my financial benefit.
The reason is because my policy opinions derive
from my principles, not my personal interests. It is a
great myth that capitalists support capitalism because
it makes them rich. Back in December the Washington
Post reported that 30 billionaires had donated money
to Barack Obama. Meanwhile the most free market
presidential candidate Ron Paul had the support of
zero.
Most free market economists tend to be like me
on modest incomes and promoting liberty at the
expense of our bank balance. If that necessitates being
squeezed a little more, so be it.
Anthony J. Evans is associate professor of econom-
ics at Londons ESCP Europe Business School.
www.anthonyjevans.com
Email him at anthonyjevans@gmail.com
Better squeezed than
baffled by tax breaks
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
DIRECTOR OF CURRENCY RESEARCH, GFT
BORIS SCHLOSSBERG
facebook.com/fx360 twitter.com/fx360
fx360.com
The contents of this column are provided for general information purposes only. One should consider the appropriateness
of the information in light of their own objectives, financial situation or needs before trading. CD11UK.074.010612
Both the equity
and forex markets
show higher
activity on certain
calendar dates,
writes Craig Drake
Wealth Management| Trading
Trade the month
end balancing act
A
S February draws to its
inevitable conclusion, what
impact does the passing of
another month have on the
markets? Though Treasuries or
corporate bonds show no signifi-
cant end-of-month effects, there is
a noticeable and measurable effect
in equity and in forex markets.
THE FIX IS IN
Month-end fixings relate to the
moves that portfolio managers
need to make to their currency
hedges based upon the perform-
ance of the equity markets. These
portfolio managers usually shift
the weightings of their portfolios
at the end of each month if the
market has seen larger moves than
they anticipated
With the S&P up 0.249 per cent
since the start of the month, it is
expected that US dollars will need
to be sold on the fix to cover this
rise in equity valuations. If your
fund followed the S&P and rose 2.5
per cent in line with the February
move and cable has strengthened
by 4 per cent, you are going to see
your gains wiped out.
Taking a simplified approach, if
you were a UK equities portfolio
manager in the month of February
to date, holding a fictional portfo-
lio of 50 per cent UK equities and
50 per cent US equities, with both
tracking the FTSE and the S&P
respectively, your UK equities
would have risen 2.53 per cent
compared with the 2.973 per cent
rise in your US stocks. As a result
you would need to sell 0.21 per
cent more dollars on the February
fix to protect your portfolio
against dollar risk. Since you are
UK-based you have no need to
hedge against sterling moves.
Taken individually, these hedg-
ing moves arent going to have a
significant effect. But done on the
same day and across the board
they have a major effect on price
action.
FEBRUARY FIX
Compared to the last 18 months,
the February month-end moves
arent going to be enormous.
However, according to David
Rodriquez, quantitative strategist
for FXCM, the recent trend has
favoered closing speculative posi-
tions: The euro has rallied sub-
stantially as large speculators
closed shorts. Can this continue
into 29 February? Absolutely, says
Rodriguez. According to CFTC
Commitment of Traders data,
large speculators have scaled back
their net-bearish euro-dollar posi-
tions by 17 per cent in the past
month. Rodriquez adds that there
may still be a fair distance to cover,
and further short-covering could
push the euro to fresh highs
against the suddenly-downtrod-
den Greenback.
END OF MONTH EQUITIES
Its not just month end fixing that
has an effect on equity markets.
Research carried out by Wei Xu
and John McConnell in a paper
entitled Equity returns at the
turn of the month looked at daily
returns for a broad range of stocks
across exchanges from 1926 to
2005. They found that all major
market returns occur during a
four day turn of the month inter-
val since the beginning of 1987,
the daily value-weighted (equal
weighted) excess market return
during the turn of the month is
0.14 per cent compared with -0.01
per cent over the other 16 trading
days. Though it was not limited to
small caps, they found that small
caps showed especially high
returns on the last day of the
month (see chart, below.)
These end of month variations
are not in themselves the key to a
successful trade, but they could be
the difference between a winning
and losing position.
DOLLAR-YEN PAIR BENEFITS
FROM US RECOVERY THEME
AS OIL CASTS ITS SHADOW
D
ESPITE the generally positive
tone of recent global economic
data, analysts remain concerned
about the prospect of sustained
growth in 2012. At the moment, their
chief source of worry is the surging price
of oil. In the US, West Texas
Intermediate has risen to nearly $110 a
barrel, while in Europe the price of Brent
is now trading above $125 a barrel.
On the one hand, the spike in crude
can be viewed as a reflection of better
economic conditions across the G20,
specifically stronger than expected
demand from China, which continues to
be the marginal buyer on the global
stage. On the other hand, the rapid rise
in oil prices threatens to snuff out the
nascent US economic recovery if gaso-
line price rises curb consumer spending
during the key summer driving season.
The sudden rise in crude prices is a
function of several unrelated factors.
Geopolitical tensions in Iran have no
doubt added some risk premium to the
price of oil.
However, the primary factor is more a
function of strong demand from Asia.
Last year, Chinese consumers bought
2.1m SUVs, up 25.3 per cent from 2010
and representing 11.6 per cent of light
vehicle sales, according to J.D. Power
and LMC Automotive. That is about half
of the 4.1m SUVs sold in the United
States, where SUVs were 32 per cent of
the light vehicle market.
Much like their US counterparts,
Chinese consumers like the safety, luxu-
ry and durability of the SUV. If this trend
persists it will likely add further upward
pressure to the price of oil as more of
these gas guzzling SUVs hit the Chinese
roads.
Gas prices in the US have now hit
$3.65 per gallon. While this is not yet a
prohibitive cost for the US consumer,
analysts worry that prices could contin-
ue to rise to $4.00 per gallon as the
summer driving season approaches. At
$4.00 per gallon, the substitution effect
is likely to kick in as US consumers begin
to curtail spending in order to pay for
fuel costs a non-discretionary good for
many. This chain of events could cast a
pall over the US economic recovery and
threaten global growth as the year pro-
ceeds.
In the FX market, the biggest benefi-
ciary of the US recovery theme has been
dollar-yen which yesterday hit a fresh
yearly high of 81.70. The pair has not
been above the 81.00 figure since July
2011 and has just recently broke above
its 4.5 year downtrend.
This rally in dollar-yen has been driven
by speculation that the Federal Reserve
will no longer provide monetary stimulus
in the form of QE3 as the US recovery
generates sustainable growth. However,
the breakout in dollar-yen could quickly
falter if currency traders begin to fear
another Federal Reserve policy action as
the US economy slows. Thats why dol-
lar-yen may be the most oil-sensitive
pair in FX at the present time.
With little material US economic data
until next weeks non-farm payrolls, oil
prices rather than economic releases
could be the key to the pairs direction
this week. As long as dollar-yen can hold
support above the 79.20 level, its
uptrend remains intact and it may make
a run towards the 82.00 figure as the
week proceeds. However, if the pair
breaks down below the 79.20 level, it
could signal yet another false dawn for
the beleaguered dollar-yen shorts as the
long term downtrend remains in place.
As long as 79.000 support remains intact USD/JPY

breakout is confirmed with 82.00 in view next
Source: GFT
2011 May Jul Aug Sep Nov Dec 2012 Feb Jun Oct 31st
85.000
81.000
80.000
79.000
77.000
78.000
76.000
82.000
83.000
84.000
ANALYSIS l Dollar-yen breakout
79.015
82.322
Portfolio managers re-balance their fx hedges Picture: GETTY
-10 -9 -8 8 9 10 -6 6 -5 5 -4 4 -3 3 -1
days fromend-of-month
-2 2 1 -7 7
0.40
0.25
0.20
0.15
0.10
-0.10
0.05
-0.05
0.0
-0.15
0.30
0.35
ANALYSIS l Month-end returns
%Average
daily return
Value weighted market return
Equal weighted market return
I
T seems National Express is not the
most popular company around at
the moment, as it takes advantage
of increased passenger numbers due
to the high cost of fuel, by jacking up its
fares. Traders were shorting it ahead of
itsresults on Wednesday, even though it
is expected to show a 13 per cent rise in
profits. Road blocks in the form of sever-
al moving averages and trendlines look
to be indicating that a fall is en-route for
National Express. Spread Co quotes
National Express at 220.52p-221.06p.
When hedge fund manager Man
announces its 2011 results this week,
investors will probably be wondering
whether this long-running tale of woe
has yet reached its end. A trading
statement in January saw the shares
rise purely on the basis that the compa-
ny managed to avoid springing any
unpleasant surprises on its long-suffer-
ing shareholders. Hopefully the compa-
ny will have been able to man up and
stem the outflow of funds, but a
gloomy outlook could see the hedge
funds price endure yet more trimming.
IG Indexs price on Man is 133.17p-
133.63p.
Its a big week for financial markets
as the second round of liquidity boost-
ing loans are expected from the ECB
and as a result the sell off so far this
week might be short lived. So far in
2012, retracements in indices have
been met by further buying. Capital
Spreads quotes a price of 6,780.0-
6,781.0 for the Dax.
Craig Drake
THE
TIPSTER
ON THE
SHORT ROUTE
TO EXPRESS
PROFITS
CITYA.M. 28 FEBRUARY 2012 25
T
HE last week has seen two
important developments for
those seeking market data,
albeit on opposite ends of the
spectrum. Yesterday saw the launch
of Bloomberg Next. Bloomberg is con-
stantly tuning and tweaking its ter-
minals, but it decided that the latest
changes were large enough to war-
rant a launch event. The complexity
and interconnectedness of the global
financial marketplace has grown sig-
nificantly. Business and financial pro-
fessionals need to synthesise
astounding amounts of information
to make intelligent investment deci-
sions, said Tom Secunda,
Bloombergs co-founder and vice
chairman at the launch. We have
redesigned the terminal to ensure
that our clients get the best, fastest
and most insightful answers.
According to Bloomberg, Next is the
result of a multi-year design process
conducted by Bloomberg Research &
Development, a team of more than
3,000 technologists. In addition, a
select group of clients volunteered to
allow Bloomberg to review keystrokes
and commands most commonly used
across an array of functions. Though
the improvements (which Bloomberg
says will come at no extra cost to the
client) were impressive, the Next sys-
tem felt like an evolution rather than
a revolution. Nonetheless, it cant do
any damage to Bloombergs domi-
nance of the trading desks of the City
of London and worldwide.
GOOGLE DATA
On the other end of the scale, it was
announced last week that Google had
done a deal with the London Stock
Exchange to provide free access to
real-time market data that had previ-
ously only been available on a 15-
minute delay. Google will only
display data based on the last price
traded. As such it will lack the depth
of data provided by Bloomberg and
Thomson Reuters systems that are
essential for professional traders. But
this development will be of interest
to those retail traders for whom the
12,000-plus a year professional sys-
tems are not an option. Watch this
space for developers taking the free
Google data and plugging it into
third party trading and signal gener-
ating platforms for retail traders to
use.
Whether institutional trader or spread
better, Google and Bloomberg have both
improved your lot, writes Craig Drake
Tech giants
provide data
boosts for all
Google has improved the search for market data. Picture: GETTY
Wealth Management | Trading
S
ITTING down and making a
trading plan is fairly straight-
forward what is your overall
objective, where are you going
to place your stops, how much of
your capital are you going to have in
each trade and in open positions at
any one time and so on. But making
the plan is the easy part sticking to
it when the markets dont go your
way is the bigger task. How often
have you moved a stop hoping to
ride a wave for longer or for a rever-
sal to take you out of a losing move?
This is especially so when you get
caught up in the noise of the mar-
kets yet another Greek solution
crumbles into the Ionian Sea, surely
euro-dollar will follow it?
Trading the price and not the
news has never been truer than it
has been in recent months, says
Michael Hewson, senior market ana-
lyst for CMC Markets. If traders fol-
lowed news flow the key themes
would have been Greece is fixed,
Greece isnt fixed, its fixed, its not
fixed and such news can cause flip
flopping in sentiment. Following
the underlying trend in price move-
ment is key to gauging trading deci-
sions and timing and while news
flow is important trading what you
see and not what you hear is proba-
bly the wisest course of action for
any trader.
Many traders argue that trading
on price action is key to avoiding get-
ting caught up in the noise of the
markets. Trading in line with the
trend is much more important than
trading based on an idea based on
macro fundamentals as its scientifi-
cally proven that certain macroeco-
nomic indicators and ideas come
and go out of fashion, says
Alejandro Zambrano, market strate-
gist at FXCM. The only way to know
if other people agree with you is if
prices trend in line with your macro
idea. Zambrano adds that you
might even be right about an idea
and get rewarded, but an idea will at
some point get saturated: The idea
to short the euro might be one of
those ideas, as everyone has been
looking to short the euro, but if
everyone is short the euro then
there will not be anyone left to move
prices lower (see chart, below). In
this case, the price will start to
increase as fewer and fewer traders
become concerned about the euro.
If the price trend shifts and the price
trend and your ideas do not agree,
follow the trend to reap the profits.
FOREX STRATEGIST
JOEL KRUGER
My pick: Buy dollar-Canadian dollar above Ca$1.0035
Expertise: Technical analysis
Average time frame of trades: 1 day to 1 week
Our constructive outlook remains intact, with the market still consolidat-
ing around parity ahead of what we believe will be an eventual retest of
key October highs by Ca$1.0660. Look for interday pullbacks to be very
well supported above Ca$0.9900 on a daily close basis, while only a
close below Ca$0.9900 would give reason for concern. Meanwhile, a
close back above Ca$1.0035 confirms and should accelerate gains. Stops
executed only on a close below Ca$0.9900 with a Ca$1.0600 objective.
ANALYST PICKS
Importance of sticking to the plan
STRATEGIST
ILYA SPIVAK
QUANTITATIVE STRATEGIST
JOHN KICKLIGHTER
Unless you adhere
to them, having a
set of trading rules
is a waste of time,
writes Craig Drake
Make a plan and keep to it. Picture: GETTY
My pick: Sell S&P 500 (pending)
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
Expect renewed risk aversion as jitters about the Greek bailout return
amid implementation anxiety before the upcoming EU leaders summit
and after G20 finance ministers failed to approve additional IMF fund-
ing. Prices put in a bearish Three Inside Down candlestick pattern, below
the May 2011 top at 1,376.10, hinting a move lower is ahead. Negative
RSI divergence bolsters the case for a downside scenario. I will look to
enter short on a daily close below 1,358.60, initially targeting 1,331.40.
My pick: Short Aussie dollar-dollar, long euro-swiss franc and dollar-yen
Expertise: Fundamental and technical analysis with risk
Average time frame of trades: 1 day to 1 week
Volatility has picked up significantly, but sustainable trends are still elu-
sive. Key into the end of last week was a rally for euro-based currencies,
but follow through there is heavily dependent on highly fluid event risk.
Nevertheless, I maintain my euro-swiss franc long view as the Swiss
National Bank has vowed resistance. Still loaded like a spring, risk trends
could play out for a number of pairs, but Ill go with a Aussie dollar-dollar
short should it clear $1.0575 while the S&P 500 slides.
$
2012 Feb6 Feb13 Feb20
1.34
1.31
1.32
1.33
ANALYSIS l Euro moves
LON GD ONCE FIX AM...........1765.00 -13.50
SILVER LDN FIX AM ..................38.05 0.06
MAPLE LEAF 1 OZ...................809.00 2.50
LON PLATINUM AM................1700.00 -17.00
LON PALLADIUM AM...............710.00 -7.00
ALUMINIUM CASH .................2252.50 24.00
COPPER CASH ......................8440.00 33.00
LEAD CASH...........................2153.00 39.50
NICKEL CASH......................19900.00 -75.00
TIN CASH.............................24000.00 -30.00
ZINC CASH ............................2060.00 24.00
BRENT SPOT INDEX................124.23 0.37
SOYA .....................................1279.00 2.25
COCOA..................................2370.00 1.00
COFFEE...................................203.25 1.25
KRUG.....................................1843.10 0.00
WHEAT ....................................165.25 -0.50
AIR LIQUIDE........................................97.05 -0.44 100.65 80.90
ALLIANZ..............................................91.48 0.31 107.45 56.16
ANHEUS-BUSCH INBEV ....................49.37 0.14 50.04 33.85
ARCELORMITTAL...............................15.86 -0.24 27.06 10.47
AXA......................................................12.03 -0.10 15.97 7.88
BANCO SANTANDER...........................6.27 -0.01 8.67 4.94
BASF SE..............................................65.81 1.11 70.22 42.19
BAYER.................................................55.91 0.01 59.44 35.36
BBVA......................................................6.76 -0.02 8.81 4.94
BMW ....................................................69.04 -1.28 73.85 43.49
BNP PARIBAS.....................................36.59 -0.33 57.30 22.72
CARREFOUR ......................................17.91 -0.41 31.44 14.66
CRH PLC .............................................16.16 -0.07 17.40 10.28
DAIMLER.............................................46.09 -1.36 53.95 29.02
DANONE..............................................50.80 0.10 53.16 41.92
DEUTSCHE BANK..............................34.83 -0.03 47.11 20.79
DEUTSCHE BOERSE .........................50.74 0.42 57.68 35.65
DEUTSCHE TELEKOM.........................8.87 0.07 11.38 7.88
E.ON.....................................................17.07 0.11 23.99 12.50
ENEL......................................................3.02 -0.03 4.86 2.78
ENI .......................................................17.41 -0.16 18.18 11.83
FRANCE TELECOM............................11.72 -0.02 16.19 11.09
GDF SUEZ ...........................................19.68 0.01 29.64 17.65
GENERALI ASS...................................12.10 -0.12 16.67 10.34
IBERDROLA..........................................4.48 -0.03 5.98 4.16
INDITEX ...............................................69.05 0.02 69.85 50.92
ING GROEP CVA...................................6.67 0.04 9.50 4.21
INTESA SANPAOLO.............................1.48 -0.01 2.33 0.85
KON.PHILIPS ELECTR.......................15.84 -0.02 24.12 12.01
L'OREAL..............................................85.44 0.44 91.24 68.83
LVMH..................................................124.70 -1.65 132.65 94.16
MUNICH RE.......................................109.80 0.20 122.80 77.80
NOKIA....................................................4.06 -0.26 6.46 3.33
REPSOL YPF.......................................20.73 0.10 24.90 17.31
RWE.....................................................33.47 0.23 49.81 21.15
SAINT-GOBAIN...................................35.55 -0.51 47.64 26.07
SANOFI ................................................56.05 -0.25 57.42 42.85
SAP......................................................50.04 -0.25 50.98 32.88
SCHNEIDER ELECTRIC.....................49.91 -1.15 61.83 35.00
SIEMENS .............................................74.50 -0.52 99.39 62.13
SOCIETE GENERALE.........................23.71 -0.72 51.71 14.32
TELECOM ITALIA..................................0.89 0.02 1.16 0.70
TELEFONICA ......................................12.91 0.05 18.58 12.50
TOTAL..................................................41.97 -0.10 44.55 29.40
UNIBAIL-RODAMCO SE...................144.35 -1.05 162.95 123.30
UNICREDIT............................................3.80 -0.09 12.45 2.20
UNILEVER CVA...................................24.99 0.08 27.16 20.90
VINCI ....................................................38.35 -0.28 45.48 28.46
VIVENDI ...............................................16.32 -0.17 21.37 14.10
VOLKSWAGEN VORZ ......................138.35 -0.90 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5915.55 -19.58 -0.33
FTSE 250 INDEX. . . . . . . . 11472.07 -54.91 -0.48
FTSE UK ALL SHARE . . . . 3063.96 -10.69 -0.35
FTSE AIMALL SH . . . . . . . . 824.48 -4.21 -0.51
DOWJONES INDUS 30 . . 12981.51 -1.44 -0.01
S&P 500 . . . . . . . . . . . . . . . 1367.59 1.85 0.11
NASDAQ COMPOSITE . . . 2966.16 2.41 0.08
FTSEUROFIRST 300 . . . . . 1073.81 -3.37 -0.31
NIKKEI 225 . . . . . . . . . . . . . 9633.93 -13.45 -0.14
DAX 30 PERFORMANCE. . 6849.60 -14.83 -0.22
CAC 40 . . . . . . . . . . . . . . . . 3441.45 -25.58 -0.74
SHANGHAI SE INDEX . . . . 2447.06 7.43 0.31
HANG SENG. . . . . . . . . . . 21217.86 -189.00 -0.88
S&P/ASX 20 INDEX . . . . . . 2536.90 0.00 0.00
ASX ALL ORDINARIES . . . 4354.50 0.00 0.00
BOVESPA SAO PAOLO. . 65241.49 -701.24 -1.06
ISEQ OVERALL INDEX . . . 3191.31 -8.94 -0.28
STRAITS TIMES . . . . . . . . . 2904.76 -1.93 -0.07
IGBM. . . . . . . . . . . . . . . . . . . 859.04 0.79 0.09
SWISS MARKET INDEX. . . 6143.92 -40.21 -0.65
Price Chg %chg
3M........................................................88.07 -0.13 98.19 68.63
ABBOTT LABS ...................................56.60 -0.10 56.84 46.29
ALCOA ................................................10.32 -0.11 18.47 8.45
ALTRIA GROUP..................................30.03 0.04 30.40 23.20
AMAZON.COM..................................178.53 -0.60 246.71 160.59
AMERICAN EXPRESS........................54.18 0.85 54.45 41.30
AMGEN INC.........................................67.44 -0.29 70.00 47.66
APPLE...............................................525.76 3.35 528.50 310.50
AT&T....................................................30.36 0.02 31.94 27.27
BANK OF AMERICA.............................8.04 0.16 14.70 4.92
BERKSHIRE HATAW B.......................80.25 0.21 87.65 65.35
BOEING CO.........................................75.21 -0.85 80.65 56.01
CATERPILLAR..................................115.63 -0.37 116.95 67.54
CHEVRON.........................................109.63 0.55 110.99 86.68
CISCO SYSTEMS................................20.17 0.03 20.49 13.30
CITIGROUP.........................................32.93 0.58 47.50 21.40
COCA-COLA.......................................68.83 -0.17 71.77 61.29
COMCAST CLASS A..........................29.19 0.00 29.92 19.19
CONOCOPHILLIPS.............................76.43 0.48 81.80 58.65
CVS/CAREMARK................................44.53 0.46 45.00 31.30
DU PONT(EI) DE NMR........................51.20 0.21 57.50 37.10
EXXON MOBIL....................................87.23 -0.11 88.13 63.47
GENERAL ELECTRIC.........................19.07 -0.17 21.17 14.02
GOOGLE A........................................609.31 -0.59 670.25 473.02
HEWLETT PACKARD.........................26.25 -0.39 43.86 19.92
HOME DEPOT.....................................46.93 -0.05 48.07 28.13
IBM.....................................................197.53 -0.23 199.23 151.71
INTEL CORP .......................................26.89 0.19 27.50 19.16
J.P.MORGAN CHASE.........................39.06 0.78 47.80 27.85
JOHNSON & JOHNSON.....................64.45 -0.01 68.05 55.76
KRAFT FOODS A................................37.91 0.03 39.06 24.30
MC DONALD'S CORP ......................100.36 0.04 102.22 72.89
MERCK AND CO. NEW......................38.15 -0.05 39.43 29.47
MICROSOFT........................................31.35 -0.13 31.68 23.65
OCCID. PETROLEUM.......................104.49 0.63 117.89 66.36
ORACLE CORP...................................29.26 0.01 36.50 24.72
PEPSICO.............................................63.32 0.01 71.89 58.50
PFIZER ................................................21.26 0.08 22.17 16.63
PHILIP MORRIS INTL .........................83.10 0.08 83.36 60.45
PROCTER AND GAMBLE ..................66.70 -0.01 67.72 56.57
QUALCOMM INC ................................63.31 -0.13 63.81 45.98
SCHLUMBERGER...............................79.11 -0.74 95.53 54.79
TRAVELERS CIES..............................58.60 0.00 64.17 45.97
UNITED TECHNOLOGIE ....................83.63 -0.34 91.83 66.87
UNITEDHEALTH GROUP...................55.73 0.08 56.16 41.27
VERIZON COMMS ..............................38.13 -0.01 40.48 32.28
VISA CL A..........................................116.86 -0.68 117.77 70.45
WAL-MART STORES..........................58.46 -0.33 62.63 48.31
WALT DISNEY CO ..............................41.64 0.33 44.34 28.19
WELLS FARGO & CO.........................31.03 0.85 32.97 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 ..................0.279 0.00
LIBOR Euro - 12 months.................1.611 0.00
LIBOR USD - overnight...................0.139 0.00
LIBOR USD - 12 months.................1.066 0.00
HaIifax mortgage rate .....................3.990 -0.02
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.500 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................3.040 -0.06
European repo rate.........................0.188 0.00
Euro Euribor ....................................0.361 0.00
The vix index ...................................17.96 0.65
The baItic dry index ........................718.0 1.70
Markit iBoxx...................................243.62 1.15
Markit iTraxx..................................130.46 -1.07
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
BAE Systems . . . . . .316.0 -0.9 340.8 248.1
Chemring Group . . . .435.0 2.0 736.5 368.8
Cobham . . . . . . . . . . .189.9 1.8 236.5 165.9
Meggitt . . . . . . . . . . . .390.5 2.4 397.6 304.9
QinetiQ Group . . . . . .152.8 0.9 154.1 101.5
RoIIs-Royce HoIdi . . .807.5 -3.0 811.5 557.5
Senior . . . . . . . . . . . . .195.4 -5.6 201.0 132.6
UItra EIectronics . . .1700.0 0.0 1789.0 1305.0
GKN . . . . . . . . . . . . . .232.5 -3.0 245.0 157.0
BarcIays . . . . . . . . . . .243.8 -3.9 319.9 138.9
HSBC HoIdings . . . . .553.5 -21.4 711.1 463.5
LIoyds Banking Gr . . .34.9 -0.8 62.9 21.8
RoyaI Bank of Sco . . .27.9 -0.6 45.7 17.3
Standard Chartere .1612.5 -25.5 1712.5 1169.5
AG Barr . . . . . . . . . .1212.0 -13.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .373.3 -4.9 444.0 289.9
Diageo . . . . . . . . . . .1501.0 6.5 1509.5 1112.0
SABMiIIer . . . . . . . . .2574.5 1.5 2577.0 1979.0
AZ EIectronic Mat . . .311.6 1.6 338.1 206.1
Croda Internation . .2162.0 -6.0 2176.0 1556.0
EIementis . . . . . . . . . .165.9 -2.1 187.4 107.5
Johnson Matthey . .2342.0 6.0 2351.0 1523.0
Victrex . . . . . . . . . . .1345.0 -8.0 1590.0 1025.0
YuIe Catto & Co . . . . .220.0 -3.0 253.0 148.0
C/$ 1.3390 0.0057
C/ 0.8465 0.0008
C/ 107.64 1.2745
/C 1.1814 0.0010
/$ 1.5821 0.0052
/ 127.17 1.3911
FTSE 100
5915.55
19.58
FTSE 250
11472.07
54.91
FTSE ALLSHARE
3063.96
10.69
DOW
12981.51
1.44
NASDAQ
2966.16
2.41
S&P 500
1367.59
1.85
Smith (DS) . . . . . . . . .171.0 -1.9 183.8 113.3
Smiths Group . . . . .1085.0 4.0 1353.0 869.5
Brown (N.) Group . . .244.1 -0.3 304.5 227.0
Carpetright . . . . . . . . .680.5 7.5 770.5 375.0
Debenhams . . . . . . . . .74.5 0.2 75.3 51.2
Dignity . . . . . . . . . . . .823.5 -6.0 854.5 686.5
Dixons RetaiI . . . . . . .14.5 0.0 19.9 9.4
DuneImGroup . . . . . .509.0 -2.0 524.5 383.9
HaIfords Group . . . . .319.0 2.1 405.9 268.6
Home RetaiI Group . .106.1 2.8 228.5 72.5
Inchcape . . . . . . . . . .377.9 1.5 425.4 268.1
JD Sports Fashion . .833.0 -11.0 1030.0 570.0
Kesa EIectricaIs . . . . .75.3 -1.0 151.4 60.2
Kingfisher . . . . . . . . .284.4 3.3 287.1 217.0
Marks & Spencer G . .360.1 6.7 402.2 301.8
Next . . . . . . . . . . . . .2763.0 3.0 2810.0 1868.0
Sports Direct Int . . . .292.2 -1.9 296.9 178.8
WH Smith . . . . . . . . . .535.5 -6.5 559.0 433.8
Smith & Nephew . . . .625.5 -3.0 718.5 521.0
Synergy HeaIth . . . . .855.5 -4.5 981.0 808.0
Barratt DeveIopme . .141.4 0.0 142.3 67.5
BeIIway . . . . . . . . . . . .790.5 -0.5 818.0 540.5
BerkeIey Group Ho .1377.0 -2.0 1387.0 960.0
BaIfour Beatty . . . . . .281.7 -4.0 357.3 214.6
CRH . . . . . . . . . . . . .1368.0 -9.0 1687.0 1053.0
GaIIiford Try . . . . . . . .588.0 10.0 588.0 332.8
Kier Group . . . . . . . .1319.0 21.0 1489.0 1097.0
Drax Group . . . . . . . .512.0 -7.0 581.5 371.9
SSE . . . . . . . . . . . . . .1283.0 5.0 1423.0 1184.0
Domino Printing S . .654.0 -16.0 705.0 434.3
HaIma . . . . . . . . . . . . .386.8 -4.9 429.6 306.3
Laird . . . . . . . . . . . . . .169.1 -5.8 207.0 127.9
Morgan CrucibIe C . .354.0 -6.0 366.4 224.0
Oxford Instrument .1137.0 -33.0 1175.0 600.5
Renishaw . . . . . . . . .1466.0 -28.0 1886.0 800.0
Spectris . . . . . . . . . .1735.0 -15.0 1750.0 1039.0
Aberforth SmaIIer . . .629.5 -6.5 714.0 494.0
AIIiance Trust . . . . . .372.7 0.2 392.7 310.2
Bankers Inv Trust . . .415.0 -4.0 428.0 346.5
BH GIobaI Ltd. GB .1191.0 -3.0 1212.0 1058.0
BH GIobaI Ltd. US . . . .11.7 -0.2 12.2 10.4
BH Macro Ltd. EUR . . .19.7 -0.1 20.2 16.3
BH Macro Ltd. GBP 2034.0 -3.0 2078.0 1661.0
BH Macro Ltd. USD . . .19.6 -0.2 20.2 16.2
BIackRock WorId M .732.5 -3.5 815.5 574.5
BIueCrest AIIBIue . . .164.8 0.0 176.2 160.6
British Assets Tr . . . .127.3 -1.7 139.4 109.0
British Empire Se . . .450.0 -6.3 533.0 404.0
CaIedonia Investm .1545.0 -5.0 1800.0 1337.0
City of London In . . .297.5 -1.5 306.9 257.0
Dexion AbsoIute L . .139.6 -0.2 151.0 130.0
Edinburgh Dragon . .245.3 -4.3 253.0 201.4
Edinburgh Inv Tru . . .491.0 -2.5 496.5 414.9
EIectra Private E . . .1633.0 -1.0 1755.0 1287.0
F&C Inv Trust . . . . . .312.3 0.0 327.9 261.5
FideIity China Sp . . . . .87.9 -1.0 114.3 70.0
FideIity European . .1126.0 -9.0 1287.0 912.0
HeraId Inv Trust . . . . .522.0 -3.0 545.5 419.0
HICL Infrastructu . . . .119.3 -0.2 121.3 112.7
Impax Environment .103.4 -1.6 125.4 88.5
John Laing Infras . . .109.7 -0.3 110.6 103.4
JPMorgan American .940.5 7.5 940.5 721.5
JPMorgan Asian In . .199.2 -4.7 244.0 170.1
JPMorgan Emerging .560.5 -9.0 610.5 480.1
JPMorgan European .742.0 -6.0 983.5 624.0
JPMorgan Indian I . . .380.0 -12.4 459.0 313.1
JPMorgan Russian .594.5 -1.5 741.0 415.1
Law Debenture Cor . .383.2 -3.2 386.4 321.0
MercantiIe Inv Tr . . .1003.0 -6.0 1119.0 823.0
Merchants Trust . . . .388.0 -3.0 431.8 341.5
Monks Inv Trust . . . .343.1 -0.5 367.9 298.1
Murray Income Tru . .668.0 -2.0 673.0 568.0
Murray Internatio . . .976.0 -13.0 991.5 818.5
PerpetuaI Income . . .268.0 -1.0 276.0 236.5
PersonaI Assets T .34930.0-220.0 35189.030210.0
PoIar Cap TechnoI . .387.9 1.9 389.2 299.5
RIT CapitaI Partn . . .1215.0 -13.0 1360.0 1173.0
Scottish Inv Trus . . . .485.0 -6.9 524.0 417.0
Scottish Mortgage . .691.5 -3.0 781.0 565.0
SVG CapitaI . . . . . . . .272.3 -0.7 279.8 165.1
TempIe Bar Inv Tr . . .942.0 -4.0 952.0 791.0
TempIeton Emergin .618.0 -10.0 684.5 497.0
TR Property Inv T . . .153.4 -2.1 206.1 136.2
TR Property Inv T . . . .69.2 -0.9 94.0 59.8
Witan Inv Trust . . . . .493.4 -3.2 533.0 401.5
3i Group . . . . . . . . . . .193.8 -2.2 312.3 166.9
3i Infrastructure . . . .122.1 -2.4 125.2 113.4
Aberdeen Asset Ma .250.2 2.9 265.8 167.8
Ashmore Group . . . .396.1 0.6 420.0 301.5
Brewin DoIphin Ho . .155.4 -1.4 184.7 113.7
CameIIia . . . . . . . . . .9625.0 223.010950.0 8800.0
CharIes TayIor Co . . .140.0 -2.5 165.0 115.6
City of London Gr . . . .66.0 0.0 93.6 61.3
City of London In . . .351.1 -6.9 440.0 304.3
CIose Brothers Gr . . .740.0 2.0 875.0 590.0
CoIIins Stewart H . . . .98.9 0.1 99.5 48.5
F&C Asset Managem .71.5 1.0 86.3 56.1
Hargreaves Lansdo .449.3 -12.7 646.5 402.5
HeIphire Group . . . . . . .2.2 0.0 17.4 1.4
Henderson Group . . .127.1 1.4 173.1 95.1
Highway CapitaI . . . . .13.0 0.0 21.0 7.0
ICAP . . . . . . . . . . . . . .387.5 -7.5 541.5 311.6
IG Group HoIdings . .467.0 -9.5 502.5 393.6
Intermediate Capi . . .274.7 -3.3 345.0 197.9
InternationaI Per . . . .221.6 1.6 388.8 148.5
InternationaI Pub . . . .118.0 -0.6 121.5 108.6
Investec . . . . . . . . . . .401.6 -1.1 522.0 318.4
IP Group . . . . . . . . . . .115.0 -1.0 119.3 36.0
Jupiter Fund Mana . .249.9 -2.4 331.6 184.9
Liontrust Asset M . . . .90.6 0.8 91.8 57.9
LMS CapitaI . . . . . . . . .57.5 -0.1 64.8 54.0
London Finance & . . .21.5 -0.5 23.5 19.0
London Stock Exch .920.0 -18.5 1076.0 756.5
Lonrho . . . . . . . . . . . . .11.0 0.8 19.8 8.9
Man Group . . . . . . . . .133.6 -0.8 288.7 104.5
Paragon Group Of . .191.3 0.3 206.1 134.6
Provident Financi . .1073.0 -1.0 1124.0 915.0
Rathbone Brothers .1260.0 -12.0 1290.0 977.0
Record . . . . . . . . . . . . .11.4 -0.1 35.5 11.1
RSM Tenon Group . . . .6.1 0.1 45.5 5.6
Schroders . . . . . . . .1568.0 -4.0 1906.0 1183.0
Schroders (Non-Vo .1244.0 -14.0 1554.0 970.0
TuIIett Prebon . . . . . .329.9 -4.0 428.6 262.3
WaIker Crips Grou . . .40.5 0.0 51.5 40.0
BT Group . . . . . . . . . .217.8 1.3 218.5 161.0
CabIe & WireIess . . . .34.7 -0.2 51.2 31.3
CabIe & WireIess . . . .27.8 0.3 72.6 14.2
COLT Group SA . . . . .98.1 0.0 156.2 84.1
KCOM Group . . . . . . . .70.5 -0.6 84.0 58.5
TaIkTaIk TeIecom . . .144.8 0.6 150.0 118.9
TeIecomPIus . . . . . . .619.5 -13.5 802.0 440.0
Booker Group . . . . . . .75.5 0.0 80.0 54.5
Greggs . . . . . . . . . . . .546.0 -2.5 556.0 445.0
Morrison (Wm) Sup .286.9 -2.5 328.0 268.5
Ocado Group . . . . . . . .99.7 -0.3 237.0 52.9
Sainsbury (J) . . . . . . .298.9 -2.6 380.0 263.5
Tesco . . . . . . . . . . . . .318.0 -0.2 420.1 312.4
Associated Britis . .1200.0 -19.0 1228.0 940.0
Cranswick . . . . . . . . .794.0 -1.0 862.0 588.5
Dairy Crest Group . . .327.0 -3.7 409.7 311.0
Devro . . . . . . . . . . . . .310.6 -0.3 314.0 232.0
Tate & LyIe . . . . . . . . .709.0 12.0 720.5 520.0
UniIever . . . . . . . . . .2053.0 3.0 2189.0 1796.0
Mondi . . . . . . . . . . . . .591.5 11.0 664.0 413.5
Centrica . . . . . . . . . . .297.4 -1.2 340.1 278.8
InternationaI Pow . . .344.0 -1.5 347.0 279.4
NationaI Grid . . . . . . .646.5 1.0 649.5 543.5
Pennon Group . . . . . .701.5 0.5 737.5 584.5
Severn Trent . . . . . .1540.0 0.0 1600.0 1375.0
United UtiIities . . . . .606.0 3.0 637.0 551.0
Cookson Group . . . . .685.0 14.5 724.5 395.8
Rexam . . . . . . . . . . . .416.0 -1.0 421.0 299.8
RPC Group . . . . . . . .385.0 -3.9 393.2 231.5
Price Chg High Low
Bovis Homes Group .510.0 4.5 514.0 326.5
Persimmon . . . . . . . .627.0 19.0 631.5 374.0
Reckitt Benckiser . .3434.0 13.0 3597.0 3015.0
Redrow . . . . . . . . . . . .129.6 0.4 136.2 103.5
TayIor Wimpey . . . . . . .49.7 -0.2 50.1 28.7
Bodycote . . . . . . . . . .394.1 -5.9 404.8 225.6
Fenner . . . . . . . . . . . .461.6 -9.3 481.8 280.0
IMI . . . . . . . . . . . . . . . .974.0 -11.5 1119.0 636.5
MeIrose . . . . . . . . . . .391.9 -1.5 394.8 268.0
Northgate . . . . . . . . . .245.4 0.2 346.7 190.9
Rotork . . . . . . . . . . .2072.0 -19.0 2099.0 1501.0
Spirax-Sarco Engi . .2083.0 -3.0 2101.0 1649.0
Weir Group . . . . . . .2230.0 -6.0 2236.0 1375.0
Evraz . . . . . . . . . . . . .402.7 -12.3 460.5 315.0
Ferrexpo . . . . . . . . . . .321.9 -2.0 499.0 238.7
TaIvivaara Mining . . .277.0 -7.0 589.0 195.2
BBAAviation . . . . . . .202.5 -1.1 223.4 156.0
Stobart Group Ltd . . .122.4 -0.7 152.8 112.0
AdmiraI Group . . . . .1062.0 15.0 1754.0 787.0
AmIin . . . . . . . . . . . . .356.6 -2.3 427.0 270.6
BeazIey . . . . . . . . . . . .149.1 -0.5 150.7 109.6
Informa . . . . . . . . . . . .439.4 -6.6 446.0 313.9
ITE Group . . . . . . . . . .232.0 -3.7 258.2 157.7
ITV . . . . . . . . . . . . . . . . .79.2 -0.9 93.5 51.7
Johnston Press . . . . . . .7.5 -0.0 12.8 4.1
MecomGroup . . . . . .185.5 -1.0 310.0 134.5
Moneysupermarket. .121.6 2.1 123.2 85.5
Pearson . . . . . . . . . .1204.0 -47.0 1255.0 1035.0
PerformGroup . . . . .282.0 12.0 285.7 150.0
Reed EIsevier . . . . . .552.0 -4.0 578.0 461.3
Rightmove . . . . . . . .1348.0 12.0 1408.0 890.5
STV Group . . . . . . . . .106.3 -1.0 168.0 76.3
Tarsus Group . . . . . .143.0 -4.3 165.0 119.5
Trinity Mirror . . . . . . . .48.3 -1.0 84.3 37.5
UBM . . . . . . . . . . . . . .601.5 -3.0 712.5 416.0
UTV Media . . . . . . . . .131.5 -1.0 150.0 92.5
WiImington Group . . .86.0 -0.5 165.0 78.5
WPP . . . . . . . . . . . . . .795.5 -6.0 846.5 578.0
YeII Group . . . . . . . . . . .4.6 0.1 11.0 3.4
African Barrick G . . .465.3 1.1 616.5 393.5
AIIied GoId Minin . . . .117.7 -1.8 281.3 34.4
AngIo American . . .2675.0 -18.5 3360.5 2138.5
AngIo Pacific Gro . . .327.4 -4.5 350.0 237.9
Antofagasta . . . . . . .1340.0 4.0 1491.0 900.5
Aquarius PIatinum . .137.2 1.2 405.5 134.7
BHP BiIIiton . . . . . . .2089.0 16.0 2631.5 1667.0
CatIin Group Ltd. . . .423.4 0.2 449.0 334.0
Hiscox Ltd. . . . . . . . . .409.8 -0.2 424.7 340.5
Jardine LIoyd Tho . . .691.0 4.0 764.5 576.0
Lancashire HoIdin . . .770.0 -2.0 790.5 532.5
RSA Insurance Gro . .109.1 0.3 141.2 99.6
Aviva . . . . . . . . . . . . . .372.3 -1.5 477.9 275.3
LegaI & GeneraI G . . .121.6 -0.5 123.8 89.8
OId MutuaI . . . . . . . . .159.9 -0.7 160.6 98.1
Phoenix Group HoI . .560.0 -4.5 688.0 451.1
PrudentiaI . . . . . . . . .719.5 -2.5 777.0 509.0
ResoIution Ltd. . . . . .265.0 0.0 316.1 229.5
St James's PIace . . . .367.0 -6.1 376.0 294.0
Standard Life . . . . . . .234.9 -0.5 244.7 172.0
4Imprint Group . . . . .240.0 0.0 295.0 200.0
Aegis Group . . . . . . .170.6 -1.8 173.5 115.7
BIoomsbury PubIis . .121.0 -0.8 138.0 91.3
British Sky Broad . . .684.5 -3.5 850.0 618.5
Centaur Media . . . . . . .43.3 -1.0 67.3 32.5
Chime Communicati .230.8 -0.8 298.5 163.0
Creston . . . . . . . . . . . .59.0 1.0 121.0 47.0
DaiIy MaiI and Ge . . .429.4 -6.4 562.0 343.4
Euromoney Institu . .761.0 -11.0 772.0 522.5
Future . . . . . . . . . . . . . .12.5 0.1 27.5 8.3
Haynes PubIishing . .207.0 -8.0 257.0 192.0
Huntsworth . . . . . . . . .44.5 0.0 79.3 32.3
Bumi . . . . . . . . . . . . . .773.0 0.39 786.0 765.0
Centamin (DI) . . . . . . . .91.7 -0.1 154.2 78.5
Eurasian NaturaI . . .726.0 -13.0 974.0 522.0
FresniIIo . . . . . . . . . .1858.0 -6.0 2150.0 1302.0
GemDiamonds Ltd. .250.0 -4.0 291.0 179.8
GIencore Internat . . .434.2 -2.2 531.1 348.0
HochschiId Mining . .511.5 -7.0 680.0 365.9
Kazakhmys . . . . . . .1137.0 -26.0 1493.0 730.0
Kenmare Resources . .57.5 -2.7 62.1 31.0
Lonmin . . . . . . . . . . .1076.0 -9.0 1880.0 941.0
New WorId Resourc .529.5 1.0 1060.0 409.4
PetropavIovsk . . . . . .736.0 4.5 1090.0 543.5
PoIymetaI Interna . .1053.0 4.0 1175.0 877.0
RandgoId Resource 7335.0 0.0 7565.0 4425.0
Rio Tinto . . . . . . . . .3702.0 31.5 4595.0 2712.5
Vedanta Resources 1477.0 -23.0 2518.0 928.0
Xstrata . . . . . . . . . . .1203.0 -12.0 1550.0 764.0
Inmarsat . . . . . . . . . . .478.7 -1.3 685.5 389.3
Vodafone Group . . . .172.0 0.3 182.7 155.1
Genesis Emerging . .511.5 -8.5 548.5 424.0
Afren . . . . . . . . . . . . . .140.1 -5.9 171.2 73.6
BG Group . . . . . . . . .1540.5 -2.5 1564.5 1144.0
BP . . . . . . . . . . . . . . . .501.7 5.5 505.8 363.2
Cairn Energy . . . . . . .356.0 -4.0 531.8 291.9
EnQuest . . . . . . . . . . .126.7 -2.4 158.5 85.7
Essar Energy . . . . . .107.6 -18.4 525.5 104.7
ExiIIon Energy . . . . . .237.0 -3.4 469.7 184.2
Heritage OiI . . . . . . . .188.0 -2.0 332.2 160.0
Ophir Energy . . . . . . .431.9 5.9 431.9 184.5
Premier OiI . . . . . . . . .442.0 -7.7 521.0 310.0
RoyaI Dutch SheII . .2317.0 -5.0 2402.0 1883.5
RoyaI Dutch SheII . .2346.0 -7.0 2489.0 1890.5
SaIamander Energy .250.0 -1.8 317.6 182.3
Soco Internationa . . .345.0 2.6 400.0 278.0
TuIIow OiI . . . . . . . . .1531.0 -12.0 1601.0 945.5
Amec . . . . . . . . . . . . .1118.0 -5.0 1207.0 740.5
Hunting . . . . . . . . . . .820.5 3.5 845.0 530.0
Kentz Corporation . .473.2 -8.7 508.0 347.0
LampreII . . . . . . . . . . .344.0 -0.2 395.2 220.7
Petrofac Ltd. . . . . . .1599.0 5.0 1604.0 1108.0
Wood Group (John) .749.0 8.5 750.0 469.9
Burberry Group . . . .1391.0 -30.0 1600.0 1092.0
PZ Cussons . . . . . . . .310.4 -0.5 387.9 285.0
Supergroup . . . . . . . .565.0 -4.5 1646.0 435.2
AstraZeneca . . . . . .2841.0 -15.0 3194.0 2543.5
BTG . . . . . . . . . . . . . .355.5 -6.3 362.6 210.1
Genus . . . . . . . . . . . .1323.0 2.0 1330.0 853.5
GIaxoSmithKIine . . .1402.5 -1.0 1497.0 1138.5
Hikma Pharmaceuti .734.0 -2.0 869.0 555.5
Shire PIc . . . . . . . . . .2227.0 5.0 2300.0 1719.0
CapitaI & Countie . . .188.1 -0.1 203.7 148.0
Daejan HoIdings . . .2880.0 -52.0 3030.0 2282.0
F&C CommerciaI Pr .102.6 -0.1 108.0 92.6
Grainger . . . . . . . . . . .107.7 -2.3 133.2 77.3
London & Stamford .115.0 -0.3 140.0 103.9
SaviIIs . . . . . . . . . . . . .360.0 -4.2 427.1 256.2
UK CommerciaI Pro . .73.1 0.1 85.5 65.1
Unite Group . . . . . . . .188.0 1.6 224.1 152.9
Big YeIIow Group . . .290.0 -10.3 344.4 218.0
British Land Co . . . . .473.0 -5.8 629.5 444.0
CapitaI Shopping . . .336.1 -2.7 408.6 288.7
Derwent London . . .1722.0 -23.0 1880.0 1400.0
Great PortIand Es . . .354.9 -6.2 445.0 312.9
Hammerson . . . . . . . .398.8 -1.3 490.9 345.2
Hansteen HoIdings . . .72.8 -1.0 89.5 68.0
Land Securities G . . .678.5 -6.0 885.0 612.0
SEGRO . . . . . . . . . . . .234.2 -1.4 331.3 195.0
Shaftesbury . . . . . . . .489.8 -9.8 539.0 441.2
Aveva Group . . . . . .1732.0 -9.0 1799.0 1298.0
Computacenter . . . . .402.5 1.9 490.0 324.7
Fidessa Group . . . . .1660.0 -5.0 2109.0 1444.0
Invensys . . . . . . . . . . .211.0 -1.0 357.3 180.9
Logica . . . . . . . . . . . . .86.6 -2.2 144.8 59.0
Micro Focus Inter . . .446.3 3.2 458.4 242.9
Misys . . . . . . . . . . . . .330.0 2.1 420.2 214.9
Sage Group . . . . . . . .307.1 -1.2 310.1 231.7
SDL . . . . . . . . . . . . . . .659.5 -5.5 711.5 586.0
TeIecity Group . . . . . .680.5 -1.5 694.5 450.5
Aggreko . . . . . . . . . .2227.0 -23.0 2250.0 1395.5
Ashtead Group . . . . .246.3 0.9 252.5 99.4
Atkins (WS) . . . . . . . .773.5 -1.5 820.0 490.2
Babcock Internati . . .740.5 -4.5 758.0 550.5
Berendsen . . . . . . . . .508.0 8.0 568.0 402.7
BunzI . . . . . . . . . . . . .952.0 21.5 958.5 676.5
Cape . . . . . . . . . . . . . .439.8 2.3 591.5 295.0
Capita . . . . . . . . . . . . .739.5 -8.0 786.5 611.5
CariIIion . . . . . . . . . . .340.5 -3.3 403.2 281.0
De La Rue . . . . . . . . .966.0 -12.0 1001.0 717.0
DipIoma . . . . . . . . . . .393.5 -10.4 425.5 263.5
EIectrocomponents .242.5 -1.5 294.9 182.2
Experian . . . . . . . . . . .942.0 -3.5 960.0 665.0
FiItrona PLC . . . . . . . .451.9 1.9 452.7 293.0
G4S . . . . . . . . . . . . . . .287.6 0.7 291.0 219.9
Hays . . . . . . . . . . . . . . .82.8 -1.3 130.0 58.9
Homeserve . . . . . . . .224.2 -4.2 532.0 218.5
Howden Joinery Gr . .119.0 -0.5 120.9 93.1
Interserve . . . . . . . . . .304.0 -6.0 341.3 239.8
Intertek Group . . . . .2274.0 -12.0 2286.0 1744.0
MichaeI Page Inte . . .453.8 -2.2 567.0 323.0
Mitie Group . . . . . . . .264.4 -3.6 271.0 195.9
PayPoint . . . . . . . . . . .575.0 -18.0 593.0 330.4
Premier FarneII . . . . .218.0 -1.7 308.8 144.5
Regus . . . . . . . . . . . . .112.5 0.0 119.0 64.0
RentokiI InitiaI . . . . . . .79.8 -2.2 100.9 58.2
RPS Group . . . . . . . . .228.1 -1.9 253.0 156.6
Serco Group . . . . . . .555.0 -7.0 618.5 458.0
Shanks Group . . . . . .105.4 -1.1 130.9 90.8
SIG . . . . . . . . . . . . . . .115.0 -1.0 153.5 77.0
Travis Perkins . . . . .1063.0 -5.0 1090.0 715.0
WoIseIey . . . . . . . . .2454.0 10.0 2465.0 1404.0
ARM HoIdings . . . . . .575.5 1.5 645.0 464.0
CSR . . . . . . . . . . . . . .250.5 1.8 391.4 154.1
Imagination Techn . .604.5 15.0 630.5 296.9
Spirent Communica .137.9 0.4 160.0 105.8
British American . .3159.0 32.0 3166.5 2300.0
ImperiaI Tobacco . .2520.0 12.0 2522.0 1878.0
Betfair Group . . . . . . .878.0 -7.5 1030.0 567.0
Bwin.party Digita . . .161.5 0.1 204.0 100.6
CarnivaI . . . . . . . . . .1841.0 -31.0 2766.0 1742.0
Compass Group . . . .636.5 0.5 641.0 512.5
Domino's Pizza UK . .446.3 -3.3 526.0 377.0
easyJet . . . . . . . . . . . .452.3 3.5 476.1 301.0
FirstGroup . . . . . . . . .291.2 -4.0 371.3 289.6
Go-Ahead Group . . .1292.0 2.0 1598.0 1190.0
Greene King . . . . . . .504.0 -2.0 521.5 410.0
InterContinentaI . . .1425.0 20.0 1440.0 955.0
InternationaI Con . . .162.9 2.5 258.7 132.0
JD Wetherspoon . . . .400.2 2.9 468.3 380.5
Ladbrokes . . . . . . . . .151.1 0.6 155.3 114.0
Marston's . . . . . . . . . . .97.8 -1.2 112.0 84.6
MiIIennium& Copt . .482.5 -5.5 585.0 371.2
MitcheIIs & ButIe . . . .266.1 2.6 336.8 215.6
NationaI Express . . .220.9 -1.2 270.2 201.6
Rank Group . . . . . . . .145.1 6.5 153.7 109.5
Restaurant Group . . .293.4 1.0 335.0 254.9
Spirit Pub Compan . . .58.5 3.0 58.5 35.3
Stagecoach Group . .268.3 0.5 287.4 200.0
TUI TraveI . . . . . . . . . .197.8 -3.1 250.0 136.7
Whitbread . . . . . . . .1720.0 17.0 1800.0 1409.0
WiIIiamHiII . . . . . . . . .226.0 -4.5 244.1 176.8
Abcam . . . . . . . . . . . .335.5 -4.5 460.0 320.0
Advanced MedicaI . . .93.5 1.5 96.0 64.8
AIbemarIe & Bond . .336.0 -6.8 400.1 281.0
Amerisur Resource . .26.0 1.0 29.0 9.5
Andor TechnoIogy . .554.0 14.0 685.0 387.1
ArchipeIago Resou . . .69.5 1.3 79.0 55.5
ASOS . . . . . . . . . . . .1805.0 -23.0 2468.0 1142.0
AureIian OiI & Ga . . . .19.5 -1.5 92.0 16.0
Avanti Communicat .260.5 -2.5 523.0 248.5
BIinkx . . . . . . . . . . . . . .82.0 -1.0 158.0 50.5
Borders & Souther . . .76.5 -1.3 80.5 43.5
BowLeven . . . . . . . . .134.3 -1.8 382.3 62.0
Brooks MacdonaId 1330.5 4.5 1372.5 940.0
CIuff GoId . . . . . . . . . .101.6 -2.4 125.8 66.5
Cove Energy . . . . . . .234.8 -0.3 239.1 61.0
Daisy Group . . . . . . .105.5 -3.0 127.0 88.0
EMIS Group . . . . . . . .419.0 -11.0 580.0 397.5
Faroe PetroIeum . . . .174.0 0.0 190.0 130.0
GuIfsands PetroIe . . .168.5 -1.5 342.0 142.5
GWPharmaceuticaI . .94.8 -2.5 130.0 78.5
H&T Group . . . . . . . . .330.0 -6.8 395.0 285.0
Hargreaves Servic .1240.0 17.0 1245.0 855.0
HeaIthcare Locums . . . .3.3 0.1 3.3 3.0
Immunodiagnostic . .407.5 -9.5 1218.0 288.8
ImpeIIamGroup . . . .327.5 1.5 387.5 225.0
Iomart Group . . . . . . .146.5 -0.5 151.0 85.5
James HaIstead . . . . .491.0 -20.0 522.9 410.0
London Mining . . . . .307.8 0.8 436.5 257.5
Lupus CapitaI . . . . . .128.5 2.5 150.0 86.0
M. P. Evans Group . .453.0 0.5 475.0 371.0
Majestic Wine . . . . . .420.0 -2.0 510.0 315.0
May Gurney Integr . .291.5 -2.6 302.0 234.0
Monitise . . . . . . . . . . . .37.8 -0.3 40.0 20.5
MuIberry Group . . . .1936.0 2.0 1951.0 1199.0
Nanoco Group . . . . . . .66.1 -0.6 93.3 38.0
NauticaI PetroIeu . . .379.0 8.8 452.0 223.5
NichoIs . . . . . . . . . . . .632.0 -2.0 642.0 410.0
Numis Corporation . . .97.0 -2.0 121.0 72.0
Pan African Resou . . .18.3 0.3 18.3 9.5
Patagonia GoId . . . . . .39.0 -1.3 70.0 36.8
Prezzo . . . . . . . . . . . . .65.3 -3.4 71.5 53.5
Pursuit Dynamics . . . .84.8 -0.3 392.0 67.0
Rockhopper ExpIor .389.5 -4.0 395.0 141.0
RWS HoIdings . . . . . .517.0 2.0 530.0 350.0
Secure Trust Bank .1047.5 0.0 1070.0 755.0
Songbird Estates . . . .111.0 3.0 160.3 103.0
VaIiant PetroIeum . . .512.0 -1.5 645.0 400.0
Young & Co's Brew . .667.5 -10.0 712.0 565.0
Spirit Pub Company . .58.5 5.4
Rank Group . . . . . . . .145.1 4.7
Perform Group . . . . .282.0 4.4
Persimmon . . . . . . . .627.0 3.1
Home RetaiI Group . .106.1 2.7
Imagination Techno .604.5 2.5
BunzI . . . . . . . . . . . . .952.0 2.3
Cookson Group . . . . .685.0 2.2
Marks & Spencer Gr .360.1 1.9
Mondi . . . . . . . . . . . . .591.5 1.9
Essar Energy . . . . . .107.6 -14.6
Kenmare Resources . .57.5 -4.4
Afren . . . . . . . . . . . . .140.1 -4.0
Pearson . . . . . . . . . .1204.0 -3.8
HSBC HoIdings . . . . .553.5 -3.7
Big YeIIow Group . . .290.0 -3.4
Laird . . . . . . . . . . . . . .169.1 -3.3
JPMorgan Indian In . .380.0 -3.2
PayPoint . . . . . . . . . .575.0 -3.0
Evraz . . . . . . . . . . . . .402.7 -3.0
Risers FaIIers
MAIN CHANGES UK 350
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Tsy 5.000 12 . . . .100.07 -0.04 104.2 100.1
Tsy 5.250 12 . . . .101.32 -0.02 105.4 101.3
Tsy 9.000 12 . . . .102.36 -1.28 111.2 102.4
Tsy 4.500 13 . . . .104.16 -0.02 106.5 104.1
Tsy 8.000 13 . . . . .111.90 -0.04 116.9 111.9
Tsy 2.500 13 . . . .283.02 0.05 287.7 281.2
Tsy 5.000 14 . . . . .111.51 -0.06 112.9 109.3
Tsy 8.000 15 . . . .127.69 0.02 129.2 123.8
Tsy 7.750 15 . . . .100.00 0.00 106.1 99.4
Tsy 4.750 15 . . . . .114.66 0.03 115.4 109.1
Tsy 4.000 16 . . . . .114.23 0.11 114.7 105.6
Tsy 2.500 16 . . . .343.90 0.35 344.3 316.5
Tsy 1.250 17 . . . . .116.12 0.27 116.6 108.2
Tsy 12.000 17 . . . .119.21 -1.07 128.6 119.2
Tsy 8.750 17 . . . .141.35 -0.16 142.0 133.3
Tsy 5.000 18 . . . .122.36 0.18 122.5 110.6
Tsy 3.750 19 . . . . .115.53 0.26 115.7 100.7
Tsy 4.500 19 . . . .120.67 0.25 120.7 106.5
Tsy 2.500 20 . . . .366.79 0.42 367.9 319.5
Tsy 4.750 20 . . . .122.93 0.27 123.5 107.7
Tsy 8.000 21 . . . .151.88 0.30 153.4 134.8
Tsy 4.000 22 . . . . .117.02 0.34 118.2 100.0
Tsy 1.875 22 . . . .127.39 0.52 129.1 113.2
Tsy 2.500 24 . . . .330.45 0.55 334.7 280.6
Tsy 5.000 25 . . . .128.57 0.40 130.6 108.5
Tsy 4.250 27 . . . . .119.81 0.52 122.7 99.1
Tsy 1.250 27 . . . .123.57 0.62 127.0 106.6
Tsy 6.000 28 . . . .144.51 0.52 148.0 120.7
Tsy 4.750 30 . . . .126.47 0.62 130.5 104.3
Tsy 4.125 30 . . . .313.96 0.62 322.8 267.2
Tsy 4.250 32 . . . . .118.92 0.63 123.1 97.5
Tsy 4.250 36 . . . . .119.13 0.68 123.9 96.8
Tsy 4.750 38 . . . .128.84 0.73 134.2 105.0
Tsy 4.500 42 . . . .125.35 0.79 130.8 101.3
% %
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MADE TO MEASURE SUITS
NOW
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Quote 'CityAM' in store to redeem at
399
ORIGINALLY
Wealth Management
W
HAT happens when you combine
the very best women in the world
of eating and drinking? Three
epic dinners that offer a chance
to celebrate female achievement in the
male-dominated world of cheffing, along-
side food and wine to blow your mind.
Masterminded by ex-Ramsay star Angela
Hartnett (pictured right) and food and wine
writer Fiona Sims, the dinners will take
place on 11, 12 and 13 March at 1 Lombard
Street. Each evening, food is prepared by a
top female British chef paired with an inter-
national star. First up is Angela Hartnett
MBE, chef patron of Murano, paired
with Gabrielle Hamilton of Prune
restaurant in New York. Hamilton,
Lifestyle
Novikov
50a Berkeley Street, W1J 8HA T
NW1 7JN , Tel: 020 7387 5277
FOOD hhhii
SERVICE hhhii
ATMOSPHERE hhhhi
Cost per person without wine: 50
ITS Russian, its huge, its in Mayfair
and it has doormen inside and out,
guarding its two restaurants and
thumping bar. To me this sounded
dubious, a blingy hangar where brash
meets trash.
But Novikov works if you can get in
and arent scared of heavies on doors
at 7pm. The two restaurants are Asian
and Italian (hey, why not?) while the
bar is justbig. And very noisy.
THE ASIAN RESTAURANT
Asian is the comfortably vague term
that best suits this smattering of
Chinese, Malay, Singaporian, Thai and
Japanese. Asian, applied to cuisine,
often means a tacky mishmash. But
Novikov just about pulls it off: the
night we went, the fashionista set were
in situ nibbling on black bream and
Chinese greens in one-shouldered
dresses with their hedge fun honcho
husbands cloaked in Prada and Berluti.
We sat by the kitchen, along a wall
of glass, and felt like we were in the
middle of a photo shoot: staff rushing
past us between fast-rotating tables of
chowing glamazons. Next to us, chefs
were chopping through a jungle of
crab claws, raw fish, meat and vegeta-
bles.
The food was not Michelin-starred
in taste or pretension, but it was, by
and large, tasty. Its not ruinously
expensive, though not exactly cheap
and cheerful, either. The likes of char-
coaled grilled wild turbot costs 28;
braised pork belly is 12 and five pieces
of sashimi/ngiri will set you back 9-
19. Youll have to order side dishes,
too.
Connoisseurs will be appalled, of
course. Japanese served alongside
Malay? Heaven forfend. Some of it the
food is indeed problematic: over-
sauced and painfully random-feeling.
But the cocophany of umami-rich
flavours (umami is defined as the sixth
taste and it basically just means
yummy) certainly seems to satisfy the
vulgar streak in some of us.
Salads are good they have to be
when most of the clientele are rake-
thin. We had a simple bowl of green
leaves with soy lime dressing and a
plate of Sardinian tomatoes with
coriander and red onion (the Asian
billing gets a bit lost here). Over on the
sushi list, the yellowtail and tuna was
not the silkiest in the world, but was
fine.
Yuzu-scented black cod was rich and
aromatic black fish is a benchmark
for any European restaurant with pan-
Asian pretensions thanks to Nobu.
Braised pork belly with spicy sweet and
sour glaze was honeyed and melting,
and black pepper beef was just what
the doctor ordered (for the patient crav-
ing Hakkasan-style pepper beef, that is).
Novikov makes a virtue of choice,
and the selection here is entertaining if
deeply unrefined. If the idea of having
sashimi of botan ebi with caviar fol-
lowed by duck fried rice and king crab
leg in blackbean sauce sounds good,
this is your kind of place. If youre a
purist, step speedily away.
THE ITALIAN RESTAURANT
Although it opened after the Asian
restaurant, there is nothing second-
best about the Italian eaterie at least
where space, noise and over-the-top
design (fake wrought iron Tuscan
fences and so on) is concerned.
My advice is: let your hair down
and dig in or go home. The large
table of Italian businessmen sitting
next to us swigging Barolo certainly
seemed to be doing the former.
A waiter who irritatingly insisted
on addressing us in Italian gave us
bread, then summoned a man with
a great big basket of raw meat,
which was intended to help us make
our main course decisions. It all
looked good and markety, peeking
out from a red checked cloth,
though being mid-sentence we
were a touch startled by the baskets
appearance, then somewhat over-
whelmed by the appearance of mul-
tiple waiters/sommeliers/bread
men/fish men and so on.
Back to the menu. Skip the plates
of cured meats and vegetables to
begin with they were all pretty
average. Also definitely skip the sea
bass carpaccio as it tasted of socks.
The plate of burrata was very good
though: it was like eating milk, and
it brought me straight to Puglia.
Theres a perfectly attractive list
of pasta and rice but as is so often
the case with this section of the
menu, its hard to justify the cost
we had a spaghetti with garlic and
clams which was too skimpy and
not refined enough for its 20 pric-
etag.
I recommend going for whatever
the meat or fish for two is. There
was lamb when we were there (it
looked in good nick) but we went for
a sea bass that could be had a variety
of ways steamed, roasted, salt-
baked and so on. We had it salt-
baked and it was lovely, the flesh
soft and cottony and, erm, salty.
For puddings we succumbed to a
blast of pseudo-Italianate deca-
dence: tiramisu and a chocolate fon-
dant with pistachio ice cream as an
extra. Yes, it was greedy, it was hedo-
nistic, but it was very Novikov, and
ultimately good fun.
Muscovite Arcady
Novikovs Mayfair
outpost is intense
in bling...and food
style mixing
HEAD SOMMELIER AND MANAGER OF
LUTYENS RESTAURANT
ANDREW CONNOR
QUAFFERS CORNER
G
erman wine is in the middle of a golden
age. But its easy to forget that despite
the excellence and intensity of German
Riesling, its not the only game in town.
Today were taking a look at the Silvaner
of Franken. Its a grape variety you find in
Germany, France (spelt Sylvaner), Austria
and the North of Italy and it generally
makes pleasant but unexceptional wines.
But just a little over an hour south-east of
Frankfurt in Northern Bavaria lies Franken
(Franconia in English) is the home of
Silvaner.
The capital of Franken, Wrzburg, is a
baroque gem, overlooked by the dramatical-
ly steep vines of the Wrzburger Stein, one
of the most famous Franconian vineyards.
The underlying geology is easy to under-
stand, red sandstone in the west giving way
to marine limestone and then marl/gypsum
in the east. The changes are evident in the
wine with floral notes leading to distinctive
herbaceous flavours in such famous vine-
yards as Iphfer Kronsberg or Iphfer Julius
Echter-berg.
The taste of Silvaner is like an English
summer, cool and green. Cucumber, green
melon, pear, apricot, flowers (honeysuckle,
roses) and, in the more herbaceous exam-
ples, mint or shiso. There is often a distinc-
tive mineral note as well. In some ways it
resembles sake.
In Franken they swear by Silvaner with
the local white asparagus and it works
equally well with the English green variety.
The nearby river Main suggests another
match in fresh water fish. Silvaner has rela-
tively low natural acidity (particularly com-
pared to Riesling) so I would avoid cooking
methods that introduce a lot of fat; baked,
poached or steamed fish would be the order
of the day. Tuck some slices of lime and fen-
nel into a trout and bake it in tin foil with a
splash of wine and some chilli flakes, for
example.
Its an easy wine to recognise as the tradi-
tional Franconian Bocksbeutel is the same
shape as a Matteus Ros bottle, but dont let
that put you off: Silvaner is one of Germanys
hidden gems.
Follow Andrew on Twitter: @LutyensWine
Silvaner: a
Bavarian gem
WORDS BY
ZOE STRIMPEL
in town to promote her acclaimed memoir
Blood, Bones & Butter, is the first female
chef to be awarded the James Beard Chef
award in New York. The second night is
hosted by Clare Smyth, head chef at Gordon
Ramsays Hospital Road and the only
female chef to hold three Michelin stars in
the UK, paired with former model Helena
Rizo, chef patron of Mani restaurant in Sao
Paulo. Third is Anna Hansen MBE of The
Modern Pantry, pairing with Margot Janse,
of Le Quartier Francais in South Africa. Girl
power indeed.
Tickets are 200 per person and include
Champagne and canaps on arrival, five-course
meal by the two chefs that evening with matching
wines with each course. The evenings are hosted by
radio and TV presenter Nigel Barden and there
will be a Q&A with the chefs and opportunity to
meet them. To book, call Elena Leva on 020 7929
9511 or emailing her el@jessen.co.uk.
City restaurant to host
a series celebrating top
women in the kitchen
Three dinners, six of the worlds best female chefs
Top: The Asian restaurant. Above: the Italian one.
Angela Hartnett is cooking dinner
with Gabrielle Hamilton.
From Russia with fusion food
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THE RICHARD DIMBLEBY LECTURE
2012 BBC1, 10.35PM
Geneticist Paul Nurse gives the 36th
annual lecture held in honour of
broadcaster Richard Dimbleby,
exploring the wonders of science.
THE EXIT LIST
ITV1, 8PM
Game show in which players can win a
cash prize by correctly answering
questions as they navigate a maze.
Last in the series.
SUPERSIZE VS SUPERSKINNY
CHANNEL4, 8PM
In the first episode of this new series.
Dr Christian Jessen advises more
Britons whose extreme eating habits
are putting their lives at risk.
BBC1
SKY SPORTS 1
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Special Report 11.30pmFootball
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SKY SPORTS 2
7pmBowling 8pmInternational
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12amBritish Basketball
2am-2.30amFIBA Basketball
SKY SPORTS 3
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Managers 7.30pmFIBA
Basketball 8pmBritish
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Golfing World 2am-4amPoker
BRITISH EUROSPORT
7pmSnooker 9.05pmBoxing
12.05am-12.35amInside IRC
ESPN
7pmLive International Football
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Review Show5amESPN Kicks:
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Kicks: Serie A 5.30am-6am
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SKY LIVING
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Biggest Loser 9pm
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Minds 11pmBones 12amCSI:
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to Declare UK 5.10am-6am
Jerry Springer
BBC THREE
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Tell the Bride 9pmJunior
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10pmEastEnders 10.30pm
Pramface 11pmFamily Guy
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12.30amJunior Doctors: Your
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the Year 4.25am-5.25amMy
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E4
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Met Your Mother 8.30pmRules
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Ricky Gervais Show12amBig
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HISTORY
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4amThe True Story 5am-6am
American Pickers
DISCOVERY
7pmBear Grylls: Born Survivor
8pmX-Machines 9pmSwords:
Life on the Line 10pmReal
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with Ray Mears 12amBear
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Swords: Life on the Line 2am
Real Prison Breaks 3amWheeler
Dealers 3.50amMythbusters
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in Seconds
DISCOVERY HOME &
HEALTH
7pmSupernanny US 8pmJon
and Kate Plus 8 9pmMystery
Diagnosis 10pmBaby ER
11pmI Didnt Know I Was
Pregnant 12amMystery
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2amI Didnt Know I Was
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4amA Baby Story 5am-6am
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SKY1
7.30pmGot to Dance: Semi-
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2004. 1.10am35mm1.40am
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Road Wars 4.40amBondi Vet
5.05am-6amSafebreakers
BBC2 ITV1 CHANNEL4 CHANNEL5
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6pmBBC News 6.30pmBBC
London News 7pmThe One Show
7.30pmEastEnders; BBC News
8pmHolby City
9pmPrisoners Wives
10pmBBC News
10.25pmRegional News;
National Lottery Update
10.35pmCHOICE The Richard
Dimbleby Lecture 2012
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Parish 2.50amRip Off Britain
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Alex is called to a faltering
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9pmHorizon: The Truth About
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10.30pmNewsnight; Weather
11.20pmRubicon
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12.50amBBC News
4am-6amBBC Learning Zone
6pmLondon Tonight
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7pmEmmerdale: Declan
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7.30pmRiver Monsters
8pmCHOICE The Exit List
9pmThe Biggest Loser:
Former boxing champion David
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10pmITV News at Ten
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1 2 3 4
5
6 7 8
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14 15 16
17 18 19
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35
12
29
20
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10
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 Creeping low plant (4)
3 Wearisome (6)
5 Shortened forename
of US president
Lincoln (3)
6 Go by boat (4)
7 Refusal to admit
something (6)
9 Not capable of
being done (10)
14 Chinese communist
leader (1893-1976) (3)
15 A person in general (3)
17 Depository for
goods (10)
20 Artists crayon (6)
22 Cab (4)
23 Bladed chopping
tool (3)
24 Fast gait of a horse (6)
25 Risqu (4)
DOWN
1 Follower of the
Islamic religion (6)
2 Simultaneous discharge
of rearms (5)
3 Plot of ground in which
plants grow (3)
4 Puts things in order (7)
8 Seize suddenly (3)
10 Make-up used on
the eyelashes (7)
11 Cooking vessel (3)
12 H Rider Haggard
novel (3)
13 ___ Ferrigno, actor
who played The
Incredible Hulk (3)
16 In a spooky manner (6)
18 Frequently, poetically (3)
19 Further from the
centre (5)
21 Circuit of a
racecourse (3)
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WORDWHEEL
The nine-letter word was
PARENTAGE
Lifestyle | TV&Games
Sport
30
A RED, white and blue scarf was last
night unveiled by British Olympic
chiefs as this sum-
mers must-have
item for fans want-
ing to show their
support for Team GB
athletes.
The scarf (right),
described as an
iconic momento of
the London Games,
has been launched
with a view to gener-
ating around 5m to
fund the teams efforts.
The British Olympic Association
hope to sell at least one million
scarves, retailing at 5 for a 50cm
square bandana or 10 for a larger
90cm version all profits
will go directly towards
funding British athletes.
We would love it to be
a massive success, said
BOA chief executive Andy
Hunt. Here is an item
you can take to show you
have gone out and sup-
ported the team. Imagine
being in the velodrome
the other night if all the
people there had been
waving a single item.
R
ORY MCILROY may have missed
out on an opportunity to top
the world rankings after his
defeat in the final of the
Accenture Match Play Champions
but his victory over Lee Westwood in
the semis had a real changing of the
guard feel about it.
Westwood has been a bastion of
Europes Ryder Cup team, has fea-
tured in the last seven renewals of
the competition and has regularly
taken the fight to the Americans.
Hell no doubt feature at the
Medinah Country Club in September
but Id anticipate McIlroy to be the
spearhead of Jose Maria Olazabals
team judging by the way he per-
formed in Tucson this week.
In essence, his match-up against
Westwood was the final and the way
he played to claw back three-hole
deficit was remarkable he was like
a force of nature.
Westwood, who wont have tasted
many match play defeats in that way
over the course of his career, simply
had no answer and it looks very
much a case of when rather than if
McIlroy becomes the dominant fig-
ure in European and world golf.
It took a huge effort, both physical
and mental, for the Northern
Irishman to overhaul Westwood and
it was no surprise he ran out of steam
in the final against a really canny
competitor in Hunter Mahan.
McIlroy is set to play two more
tournaments before taking a three-
week break ahead of the Masters as
he did last year to some conjecture.
For me, pre-tournament prepara-
tion is down to the individual and if
McIlroy feels hell give himself the
best chance of winning at Augusta by
taking time out then so be it. Nobody
knows his game better than him.
Sam Torrance OBE won 21 European Tour
titles and is a former Ryder Cup captain.
Follow Sam on Twitter
@torrancesam
BOA unveil scarf in bid to
raise funds for Team GB
McIlroy ready to take over
OLYMPICS
GOLF COMMENT
SAM TORRANCE
Morgan left to
sweat on place for
tour of Sri Lanka
AFTER salvaging some pride in the
abbreviated formats of the game in
Abu Dhabi and Dubai in recent weeks
England will turn their attentions back
to Test cricket when the squad for the
upcoming tour of Sri Lanka is named
today.
Struggling batsman Eoin Morgan
failed to enhance his hopes of maintain-
ing a place in the team ahead of next
months trip abroad after his miserable
tour of the United Arab Emirates ended
with another failure yesterday.
The Middlesex left-hander has been
an ever present in the Test side follow-
ing the retirement of Paul Collingwood
at the end of the 2010 Ashes series,
but in 17 innings in all three formats of
the game against Pakistan he managed
a top score of just 31.
The 25-year-olds Test average,
meanwhile, is on the verge of dipping
below 30 having struggled to cope
with Pakistans spin attack and with
conditions certain to be similar in Galle
and Colombo, England may well look to
promote Essexs Ravi Bopara.
Head coach Andy Flower notified
the players of their selection following
last nights thrilling five-run win over
Pakistan which clinched the Twenty20
series.
Tim Bresnan, who missed the Test
whitewash against Pakistan with an
elbow injury is certain to be included,
but fellow seamer Chris Tremlett will
miss out due to a back injury.
In 17 innings on tour Morgan made
a top score of 31 Picture: GETTY
ENGLAND Twenty20 skipper Stuart
Broad insists his side are on course
to defend their world crown later
this year after a masterful display of
death bowling from Jade Dernbach
ensured a nerve-jangling five-run
series clinching victory over
Pakistan in Abu Dhabi.
Kevin Pietersen continued his
recent rehabilitation with the bat,
striking an unbeaten 62 from 52
balls, as England laboured to a total
of 129-6 with Pakistan spinner
Saeed Ajmal ending the tour as he
started it, collecting a cluster of
wickets and recording impressive
figures of 4-23.
Ajmals efforts looked set to be
rewarded as, with seven wickets in
hand, Pakistan were well placed to
knock off the 32 runs they needed
to take the series 2-1 with four overs
left.
A defiant Broad, however,
applied the brakes and conceded
just four runs from the penulti-
mate over and when Dernbach was
summoned to bowl the final six
balls the hosts suddenly required 13
for victory.
The Surrey paceman kept his
nerve, castling Pakistan captain
Misbah-ul-Haq with the final ball of
the match, before he embarked on
a memorable celebration that cul-
minated in a perfect knee slide in
front of his jubilant team-mates.
Broad, who will lead his side in
Sri Lanka in September with
England looking to retain the
title they won in the
Caribbean two years ago,
had his captaincy creden-
tials tested to the limit
during such a tense finale
but both he and his charges
passed with flying colours.
Twenty20 is a thinking
mans game and it can
change every ball. As a team,
we need to keep our emo-
tions in check and keep
calm, he said.
You have clear principles
and clear plans in order to achieve
that. We held our nerve at the end.
Its hugely exciting and Im excited
about how this team is shaping up.
Pietersen, fresh from scoring
back-to-back hundreds in the one-
day series that England won 4-0,
was named man of the series to
underline his return to form.
The last fortnight has represent-
ed a pleasing U-turn in fortune for
the South African-born star, who
began the winter dazed and con-
fused under the spell of Pakistans
spinners, but concluded it in the
sort of dismissive form which made
him such a captivating spectacle
during the early part of his career.
Ive worked my backside off over
the last few weeks, he said. I had a
two-month lay-off and it takes time
to get back into the swing, and
their bowling attack surprised us.
In T20 you have to change gears, I
got that right today.
England death
star Dernbach
seals dramatic
series victory
BY JAMES GOLDMAN
CRICKET
Dernbach bowled Misbah with

the final ball of the match
Picture: GETTY
31
FULHAM manager Martin Jol is poised
to complete a surprise swoop for for-
mer Real Madrid midfielder
Mahamadou Diarra who has agreed a
contract with the west London club
until the end of the season.
The combative 30-year-old, who cost
the Spanish giants 22m when he
signed from Lyon in 2006, will join the
mid-table Premier League side subject
to his successful visa application.
Diarra has been without a club
since he left Monaco following their
relegation from Frances top division
at the end of last season.
FOOTBALL
THE MANNER of Tottenhams

emphatic defeat to an unusually
committed Arsenal in Sundays
north London derby might have
been startling, but the loss itself
was in fact a continuation of a
stalling of their momentum.
Spurs enjoyed an astonishing
purple patch throughout the
autumn which brought them 10
wins from 11 Premier League
games and laid the foundations for
a season that still promises to far
exceed expectations.
Yet momentum has tailed off in
recent weeks and, although they
still enjoy a comfortable lead,
Tottenham risk being chased down
by Arsenal and Chelsea in the race
for Champions League spots if they
do not address this slump.
Since their 1-1 draw with
Chelsea on 22 December, Spurs
have taken 19 points from 11
league games or an average of 1.73
points per match.
That is far from crisis territory,
but a marked deterioration from
their previous 11 fixtures, in which
they took 28 points, or an average
of 2.55 points per game. Their
seven-point advantage over their
London rivals would be far small-
er by now had Arsenal not suf-
fered a similar dip and Chelsea an
even more chronic malaise.
Pinpointing one overriding rea-
son for their relapse into inconsis-
tency is tricky when there are a
number of plausible explanations.
Gone is the predictability of
selection, and therefore continuity,
from earlier in the campaign, with
injuries to Aaron Lennon and
Rafael van der Vaart depriving
Spurs of key components in their 4-
4-1-1 system. Lingering uncertainty
over the future of manager Harry
Redknapp, and the two-week
absence his court case entailed,
cannot have helped, while perhaps
that purple patch was always
unsustainable.
Whatever the root cause,
Tottenham can ill afford to let the
slide continue, especially following
Sundays 5-2 wake-up call, with at
least one of Arsenal or Chelsea like-
ly to mount a charge in the run-in.
The return to fitness of Lennon
and Van der Vaart offers Redknapp
more options, while he too must
want to sort out a mooted deal to
become England manager sooner
rather than later.
Painful though defeat at
Emirates Stadium must have
been, the agony will be greater
and longer-lived if it is not dis-
missed as a blip and recognised as
evidence of Tottenhams gradual
but steady
decline.
Stumbling Spurs
give rivals hope
in top four dash
BY FRANK DALLERES
FOOTBALL
Fulham set to
complete shock
Diarra swoop
ARSENAL chief executive Ivan Gazidis
insists manager Arsene Wenger does
have money to spend, after confirm-
ing a 49.5m pre-tax profit for the six
months ending 30 November.
Wenger did not buy in January,
despite a summer profit of 63m on
sales of stars such as Cesc Fabregas
and Samir Nasri, and a small increase
in both matchday and commercial
revenues.
There is money available, said
Gazidis. We have to invest efficiently
as we do not have the kind of money
that other clubs have. But we have
enough I believe, if we do it well, to be
able to compete at the very highest
levels of the game.
Wenger has
spare cash,
say Arsenal
Results
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email sport@cityam.com
SPORT | IN BRIEF
Bent a doubt for Euro 2012
FOOTBALL: England striker Darren
Bent is a major doubt for the sum-
mers European Championship after
it was confirmed he has suffered
ankle ligament damage. Aston Villas
record signing hurt the joint on
Saturday against Wigan and will
need up to three months to recover.
Essex sign Aussie Siddle
CRICKET: Fast bowler Peter Siddle
will play for Essex in the Friends Life
t20 this summer, subject to clear-
ance from Cricket Australia. Siddle
becomes Essexs second overseas
signing of the season after South
Africa opening batsman Alviro
Petersen agreed a deal last week.
SPURS: 53pts
Man Utd (H) 4 Mar
Everton (A) 10 Mar
Stoke (H) 17 Sat
CHELSEA (A) 24 Sat
Swansea (H) 1 Apr
Sunderland (A) 7 Sat
Norwich (H) 9 Apr
Bolton (A) 15 Apr
QPR (A) 21 Apr
Blackburn (H) 29 Apr
Aston Villa (A) 5 May
Fulham (H) 13 May
ARSENAL: 46pts
Liverpool (A) 3 Mar
Newcastle (H) 12 Mar
Aston Villa (H) 24 Sat
QPR (A) 31 Sat
Man City (H) 8 Apr
Wolves (A) 11 Apr
Wigan (H) 14 Apr
CHELSEA (H) 21 Apr
Stoke (A) 28 Apr
Norwich (H) 5 May
West Brom (A) 13 May
Everton (A) TBA
CHELSEA: 46pts
West Brom (A) 3 Mar
Stoke (H) 10 Mar
Man City (A) 19 Mar
TOTTENHAM (H) 24 Mar
Aston Villa (A) 31 Mar
Wigan (H) 7 Apr
Fulham (A) 9 Apr
Newcastle (H) 14 Apr
ARSENAL (A) 21 Apr
QPR (H) 29 Apr
Liverpool (A) 5 May
Blackburn (H) 13 May
THE RUN-INS | TOTTENHAM HUNTED BY LONDON RIVALS
Tottenhams high standards have dipped a touch since the end of last year Picture: REUTERS
FOOTBALL
1.73
Spurs average points
per league game
since 22 Dec
2.55
Spurs average
pts/game in previous
11 league games

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Dernbach bowled Misbah with

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