You are on page 1of 32

▲ ▲ BUSINESS WITH PERSONALITY D-DAY FOR LONDONERS BORIS AND KEN NECK AND NECK AS POLLING
▲ ▲ BUSINESS WITH PERSONALITY D-DAY FOR LONDONERS BORIS AND KEN NECK AND NECK AS POLLING

BUSINESS WITH PERSONALITY

▲ ▲ BUSINESS WITH PERSONALITY D-DAY FOR LONDONERS BORIS AND KEN NECK AND NECK AS POLLING

D-DAY FOR LONDONERS

BORIS AND KEN NECK AND NECK AS POLLING STATIONS OPEN

See Pages 2, 11, 19, 23

ISSUE 1,625 THURSDAY 3 MAY 2012

www.cityam.com

FREE

KING DEFIES CITY CRITICS

▲ ▲ BUSINESS WITH PERSONALITY D-DAY FOR LONDONERS BORIS AND KEN NECK AND NECK AS POLLING

BY TIM WALLACE

MERVYN King hit out at his increasing number of critics in the City and Westminster last night, saying “vested interests” who wanted to defend their bonuses and profits were no match for a central bank with “over three cen- turies of history”. In an extraordinary attempt to defend his record in power, he said he had seen the crisis coming but had been powerless to stop it because the Bank’s wings had been clipped in 1997. His comments at the BBC’s Today Programme lecture will raise eyebrows in the City, where a growing number of players privately argue that he failed to hike interest rates during the bubble years and refused to provide enough liquidity to the financial sys- tem during the early months of the financial crisis, making matters worse. But King said he did try to warn reg- ulators and banks and that nobody lis- tened to him. He said he wished he had shouted louder. Striking a defiant note, King defend- ed the wide-ranging powers he is poised to grab and claimed his reforms to the banking system will have a long- term impact on the UK. He said that he is seizing this “historic opportunity” to

pass on a legacy of economic stability. King defended his record in office, arguing that he was successful in the role he was given, and that inflation was under control before the crisis. The new structure of the Bank seeks to focus on the big picture, recognis- ing and acting on risks preemptively – which he says should always have been in the Bank’s power. King said:

“Already we see vested interests rise up to defend their bonuses and profits. But, as an independent central bank with over three centuries of history, we can resist those short-term pres- sures and take the longer view needed to prevent another crisis.” But critics believe that the Bank is being unrealistic in believing that pay and dividends can be slashed. They also argue that his desire to hike capi- tal requirements – discussed again yes- terday – have gone too far and are the main reason for the scarcity of credit. Recent Bank critics include Treasury Select Committee chairman Andrew Tyrie, who warned new banking rules could worsen the squeeze, ex-MPC member Andrew Sentance who thinks King is risking inflation; Peter Sands of Standard Chartered; and David Cumming of Standard Life.

ALLISTER HEATH: Page 2

▲ ▲ BUSINESS WITH PERSONALITY D-DAY FOR LONDONERS BORIS AND KEN NECK AND NECK AS POLLING

Mervyn King believes that his reforms are the only way forward for the City of London

BSkyB says it is still fit to broadcast

BY MARION DAKERS

BSKYB yesterday defended itself against mounting political pressure over its biggest shareholder News Corp, insisting that it remains a “fit and proper” British broadcaster. News Corp also leapt into defence mode yesterday following a bruising parliamentary report on phone hacking at its subsidiaries. Its directors stated their “full confidence in Rupert Murdoch’s fitness and support for his continuing to lead News Corp into the future.” But left-wing politicians piled in to criticise the media tycoon. Deputy prime minister Nick Clegg said yesterday that “there are very serious question marks about the basic accountability and corporate governance” at the News Corp stable in light of the culture committee’s report. And Labour leader Ed Miliband told the BBC that “Ofcom needs to add urgency to its investigation” into Murdoch’s fitness to own a media group following “very very serious wrongdoing at News International”. But BSkyB chief Jeremy Darroch grabbed the opportunity of his company’s record results to say:

“We believe that Sky’s track record as a broadcaster is the most important factor in determining our fitness to hold a licence.” He also set out the results of a review at Sky News to emphasise its distance from under-fire peer News International. It said law firm Herbert Smith had found “no evidence of impropriety or cause for concern” in Sky News’ emails and payment records.

BSKYB RESULTS: Page 6

FTSE 100 ▼ 5,758.11 -54.12 DOW ▼ 13,268.65 -10.67 NASDAQ ▲ 3,059.85 +9.41 £/$ 1.62 unc
FTSE 100 ▼ 5,758.11 -54.12
DOW
▼ 13,268.65 -10.67
NASDAQ ▲ 3,059.85 +9.41
£/$
1.62 unc
£/€ ▲ 1.23 +0.01
€/$
1.32 unc
Certified Distribution
27.02.2012 till 01.04.2012 is 99,462

2

NEWS

THURSDAY 3 MAY 2012

To contact the newsdesk email news@cityam.com

Mervyn King should have hiked rates to deflate the bubble

S IR Mervyn King, the governor of the Bank of England, is not one for mea culpas. His speech last night was an extraordinary

defence of his record in office – and a

largely unfair attack on his detractors, ignoring their intellectual arguments and questioning their motives. He did admit that he should have done more but his main argument was that he didn’t have the right tools to act. His concession was that he didn’t “shout” loudly enough about the rise in risk. Those who believe that the crisis was a case of pure, unprompted animal spirits in the City will have seen all of their prejudices reinforced; but those who believe that blunders from cen- tral banks were one of the key factors encouraging lenders and borrowers to act stupidly were left disappointed by King’s analysis. His claim that this

EDITOR’S LETTER ALLISTER HEATH
EDITOR’S
LETTER
ALLISTER HEATH

was a bust with no boom was espe- cially unconvincing. The Bank could (and should) have jacked up interest rates at the height of the bubble; it didn’t need extra powers to deflate the housing boom and thus rein in the insane expansion of Northern Rock and others. Higher UK base rates would also have made it harder for HBOS’s crazed commercial property lending. The need to target a faulty consumer price index measure of inflation need not have con-

strained him excessively – higher rates could have been justified to pre- vent a bubble turning into a crash and hence disrupting the price level. Increasing UK base rates would not

have been a panacea: this was a global

bubble, fuelled by lower long-term

borrowing costs set in the bond mar- kets and heavily influenced by global East-West imbalances, the actions of the Fed and China’s currency manip- ulation. But the Bank could have done far more even with the tools it had (and did King really oppose Labour’s decision to strip the Bank of its regulatory powers in 1997?). King is also wrong to emphasise, at this stage in the cycle, the need for increased capital requirements. He is right that Banks need to hold enough equity against their loans to make sure they are cushioned against loss- es. But the new, ever increasing capi-

tal requirements have now gone too far: they are making a whole range of loans unviably costly and reducing the supply of credit beyond what is prudent. Normally, in a downturn, banks should reduce their reserves; and they should increase them in an upturn. We are doing the opposite, which is madness. Bailouts are immoral. The fact that we had a system that actually encour- aged them was unforgivable. Astonishingly, the authorities didn’t have a Plan B in case a bank failed – it was simply assumed it would be bailed out. This created enormous moral hazard. We need – and King is right about this – special bankruptcy procedures for banks that allow them to be wound down in a controlled manner, wiping out shareholders as well as bondholders while protecting innocent bystanders and taxpayers.

But King is wrong to dismiss the applicability of such resolution proce- dures for the largest, universal banks. He remains excessively attached to the Vickers report, a mixed bag of a document which doesn’t represent the best way forward. All in all, not King’s most enlightening speech.

BACK BORIS

TODAY is election day for Londoners. As I explained at length in this space yesterday, City A.M. believes that Boris Johnson is the best man for the Mayor’s job and that he deserves a sec- ond term. The race will be much clos- er than many believe – so make sure you have your say. If you haven’t voted yet, there is still time: the polling sta- tions close at 10pm tonight.

▲ 2 NEWS THURSDAY 3 MAY 2012 To contact the newsdesk email news@cityam.com Mervyn King should

allister.heath@cityam.com Follow me on Twitter: @allisterheath

CBI: slump will make Osborne miss debt goal

▲ 2 NEWS THURSDAY 3 MAY 2012 To contact the newsdesk email news@cityam.com Mervyn King should

BY TIM WALLACE

THE GOVERNMENT’S budget deficit will go up, not down as planned, this year because of the new recession, the Confederation of British Industry (CBI) warned yesterday. Borrowing will rise to £128.2bn in 2012-13, the respected business group said, £8bn higher than the Office for Budget Responsibility (OBR) expects and £2.2bn above the £126bn borrowed in 2011-12. Meanwhile Legal and General analysts warned that in the longer- term, economic growth may never reach the levels the government hopes for. “The OBR’s forecasts for global growth of five per cent are unsustainable – in the years up to 2007, these rates caused the economy to overheat, leading to recession,” said James Carrick. As a result, UK growth will reach 1.5 per cent in the next five years “in a best case scenario”, half of the OBR’s three per cent forecast and leaving the government with a five per cent budget deficit in 2016-17. However, Carrick said there was no real alternative to the government’s deficit reduction, adding more government spending would risk creating a bond crisis. “The government is damned if it does and damned if it doesn’t,” Carrick concluded.

Heathrow’s border staff set to walk out on strike

▲ 2 NEWS THURSDAY 3 MAY 2012 To contact the newsdesk email news@cityam.com Mervyn King should

BY MARION DAKERS

THE MAMMOTH queues at Heathrow passport control could get even longer next week, when UK Border Force staff walk out on strike. The government confirmed last night that more than 4,000 mem- bers of the Immigration Services Union are joining public sector workers in a national strike over pensions on Thursday 10 May, leav- ing Britain’s airports and borders short-staffed. ISU deputy general secretary Lucy Moreton said the union has hun- dreds of members at Heathrow “so it will have a significant impact” at Europe’s busiest airport. “We don’t want to cause disrup- tion, but if the Cabinet Office con- tinues to ignore our concerns over pensions then that is what we are going to do,” she added. Another union, the PCS, has already said its 9,000 Border Force workers across the country will walk out next Thursday. Immigration minister Damien Green said “tried and tested contin- gency plans” will be used to try and minimise disruption, and slammed the strike as “completely unneces- sary”. Earlier this week Green promised to draft in 80 extra staff to man the immigration desks at Heathrow

GETTY
GETTY

Passengers at Heathrow have complained of ever-growing queues at passport control

after a week of two-hour waits for some passengers, which he blamed on the wet weather but the Labour party linked to staffing cuts. Boris Johnson this week wrote to home secretary Theresa May to warn that the delays are creating “a terrible impression of the UK” ahead of the Olympic Games. “Our border controls are an interna- tional embarrassment, putting British jobs and economic growth at risk – and this strike will make that worse,” added Institute of Directors head Simon Walker.

The ongoing problems are not isolat- ed to Heathrow – a spokesperson for Eurotunnel said its passengers was also experiencing delays at border checks, adding that the Channel Tunnel “is already seeing an increase in business on the back of the Olympics”. The 10 May strike action could encompass hundreds of thousands of public sector workers, including staff at the Ministry of Defence, the NHS, local authorities and the civil service.

THE FORUM: Page 22

IN BRIEF

BP settlement gets initial nod

n A US federal judge has given preliminary approval to a proposed class-action settlement that would resolve billions of dollars in claims against BP over the 2010 Gulf of Mexico oil spill. US District judge Carl Barbier's ruling yesterday allows the settlement process to proceed, but he will hold a “fairness hearing” later this year before deciding whether to give final approval. The deal between BP and a team of plaintiffs’ attorneys is designed to resolve more than 100,000 claims by people and businesses who blame the spill for economic losses. BP estimates it will pay about $7.8bn to resolve these claims.

Zoellick defends World Bank role

n Outgoing World Bank President Robert Zoellick last night gave an impassioned defence of the institution he has run for five years and urged his successor to focus on developing countries as clients rather than aid recipients. “We’re beyond a model of charity to poor people,” Zoellick said “If you just take the US, four per cent of the world’s population, 20 or more per cent of the world economy - you have an interest in what’s happening out there.” If rich countries ignore global poverty, “it becomes breeding grounds for problems,” Zoellick said. The US has been the World Bank’s biggest shareholder since its start. But huge US deficits have put pressure on all, raising questions about continued support by Washington for the Bank's anti-poverty programmes.

WHAT THE OTHER PAPERS SAY THIS MORNING

▲ 2 NEWS THURSDAY 3 MAY 2012 To contact the newsdesk email news@cityam.com Mervyn King should

Airline levy could aid UK border

Two Democratic senators have turned up the political pressure on News Corp, reviving questions about whether a scandal at Rupert Murdoch’s UK newspapers could jump the Atlantic. Sen Jay Rockefeller of West Virginia has written to Lord Justice Leveson asking for any evidence that “troubling and sometimes criminal conduct” had occurred in the US or involved US citizens.

Squeeze on banks hits project finance

The government’s plans to invigorate the

recession-hit economy by attracting private capital into big infrastructure projects are being jeopardised by a sharp slowdown of the project finance market, used to fund railways, hospitals, airports and power plants. Senior bankers say the traditional project finance model – using long-term, low-cost loans secured by the income stream of the underlying assets – is in effect broken because of shrinking bank finance and regulatory pressures.

Nokia missed smartphone revolution

Nokia will launch a range of tablets and “hybrid” smart mobile devices as it seeks to turn round the fortunes of its ailing handset business, chairman Jorma Ollila told the FT.

▲ 2 NEWS THURSDAY 3 MAY 2012 To contact the newsdesk email news@cityam.com Mervyn King should

Tesco tempts savers with new bond

Tesco Bank is again cashing in on the public’s desperation for inflation-beating yields by launching an 8½-year bond that will pay out 5 per cent a year in interest.

Flu camp catches the flotation bug

The operator of a “flu camp”, in which volunteers are deliberately infected with the sniffles, is going public in a £33m flotation that will raise money to buy thousands of vials of the influenza virus. The stake held by chair David Norwood will be valued at £2.6m in the offering.

▲ 2 NEWS THURSDAY 3 MAY 2012 To contact the newsdesk email news@cityam.com Mervyn King should

Justify your salary, watchdog tells MPs

MPs should justify their £65,738 a year salaries, the head of the Commons’ expenses watchdog has said. Sir Ian Kennedy, the head of the Independent Parliamentary Standards Authority, made the comments as he launched a wide- ranging consultation on MPs’ pay.

£90bn of government projects at risk

A fifth of the Government’s biggest projects are in danger of over-running, over-spending or failing outright, a Whitehall audit has found.

▲ 2 NEWS THURSDAY 3 MAY 2012 To contact the newsdesk email news@cityam.com Mervyn King should

Gingrich formally exits 2012 race

Newt Gingrich said he is ending his run for president, but the former House speaker said he plans to remain a force in the campaign. But his praise for Mitt Romney, who he has conceded will be the Republican nominee and has told he will eventually endorse, was at best tepid.

S&P raises Greece’s credit rating

Standard & Poor’s said yesterday it raised Greece’s credit rating to CCC from SD (selective default) after the country completed its distressed debt exchange.

CITYAMCAREERS.com

The new jobs website for London professionals

cityam.com

THURSDAY 3 MAY 2012

NEWS

3

Bid fears as top telco investor puts up a fight

▲ cityam.com THURSDAY 3 MAY 2012 NEWS 3 Bid fears as top telco investor puts up

BY LAUREN DAVIDSON

SHARES in Cable & Wireless Worldwide dropped by six per cent yesterday morning as investors ago- nised over the prospect of Vodafone’s £1.04bn takeover bid. Orbis Investment Management, CWW’s biggest shareholder with a 19 per cent stake, reiterated its discon- tent with Vodafone’s 38p per share offer for the ailing cable company. When Vodafone last week tabled its bid for CWW, claiming to have irrevo- cable undertakings or letters of intent from 18.6 per cent of shareholders, Orbis said it could not commit to backing the deal because it did not “reflect the value inherent in CWW”. The fund manager has since said that it could fight to remain a minor- ity shareholder in a Vodafone-owned Cable & Wireless. It added that it knows “very well the risk that Vodafone may withdraw its offer and CWW’s share price may fall in the short term.” Vodafone’s offer stipulates that in return for total control of the compa- ny, at least 75 per cent of CWW’s shareholders must approve the deal.

The telecoms giant has said it will not raise its offer price but it reserves the right to implement a standard takeover procedure, which requires 50 per cent approval and would allow minority shareholders to remain. Orbis is unlikely to be able to hold out unless other shareholders take its side, but the fund manager is on famil- iar ground. It refused to tender its 10 per cent stake in printer maker Océ to camera giant Canon, remaining a minority shareholder after the 8.60 a share takeover in January 2010. Orbis then sold its holding to Canon in December 2011 for an undisclosed sum, understood to be a significant mark-up on the original offer price.

▲ cityam.com THURSDAY 3 MAY 2012 NEWS 3 Bid fears as top telco investor puts up

Cable & Wireless Worldwide PLC

36.50 p 33.85 2 May 36.00 35.50 35.00 34.50 34.00 33.50 26 Apr 27 Apr 30
36.50
p
33.85
2 May
36.00
35.50
35.00
34.50
34.00
33.50
26 Apr 27 Apr 30 Apr
1 May
2 May
▲ cityam.com THURSDAY 3 MAY 2012 NEWS 3 Bid fears as top telco investor puts up

Carlyle co-founders William Conway, Daniel D’Aniello and David Rubenstein

Carlyle Group raises $671m as it lowers IPO price ahead of listing

▲ cityam.com THURSDAY 3 MAY 2012 NEWS 3 Bid fears as top telco investor puts up

BY LAUREN DAVIDSON

GLOBAL asset management firm Carlyle Group lowered its IPO price ahead of its Nasdaq debut today. Last night Carlyle, which has about $147bn in assets under

management, priced its flotation at

$22 a share, falling short of the $23-

$25 range initially touted.

Carlyle raised $671m from the

sale of about 10 per cent of its

stock, sending the private equity

firm towards a $7bn market cap.

The lower offering price was

thought to be an attempt to attract

certain desirable large

shareholders and to encourage

strong trading on its first day as a

listed company. And the plan seems to have worked. Sources said yesterday that Carlyle has taken orders for more than the 30.5m shares on offer. According to Dealogic, if the full over-allotment of Carlyle’s shares is used – pushing the takings up to $772m – it would be the biggest IPO this year by deal size and the third biggest private equity float behind KKR and Blackstone. Proceeds from the IPO will be used to pay down debt and finance operations, acquisitions and new

fund commitments, the firm said. JP Morgan, Citigroup and Credit

Suisse and BoA Merill Lynch acted

as underwriters on the flotation.

Samsung soars past rivals to top the tables

▲ cityam.com THURSDAY 3 MAY 2012 NEWS 3 Bid fears as top telco investor puts up

BY LAUREN DAVIDSON

THE DECLINE of Nokia’s prominence as the top mobile phone maker was emphasised yesterday in a report from the International Data Corporation, which showed that Samsung has pipped the creator of the eponymous ringtone to the coveted top spot. Samsung shipped 93.8m mobile phones in the first quarter of this year, soaring past Nokia whose shipments dropped by almost a quarter to 82.7m. This is the first time since the IDC’s Mobile Phone Tracker was launched in 2004 that Nokia has not led in total mobile phone shipments. The South Korean company also overtook Apple as the world’s top smartphone vendor, establishing a new market record for the number of smartphones shipped in a quarter. While Apple increased its shipments by 89 per cent in the period to a total of 35.1m iPhones, Samsung topped the table by growing its sales 267 per cent to 42.2m smartphones. With respective market shares of 29.1 per cent and 24.2 per cent, Samsung and Apple dominate more than half of the smartphone market. Research in Motion reached a low not seen since 2009, with BlackBerry shipments declining by 29.7 per cent to 9.7m in the quarter.

HANDSET WARS: Page 26

▲ cityam.com THURSDAY 3 MAY 2012 NEWS 3 Bid fears as top telco investor puts up
▲ cityam.com THURSDAY 3 MAY 2012 NEWS 3 Bid fears as top telco investor puts up

4

NEWS

THURSDAY 3 MAY 2012

cityam.com

UBS focuses on wealth as its profits plunge

BY JULIET SAMUEL Fixed income trading drove much

4 NEWS THURSDAY 3 MAY 2012 cityam.com UBS focuses on wealth as its profits plunge Fixed

INVESTORS drove up UBS’s shares yesterday amid signs that it is suc- cessfully carrying out its strategy to focus on wealth management and scale back its investment bank. The bank’s first quarter results showed a 42 per cent drop in pre- tax profits to SFr1.3bn (£879.6m), but analysts said that the underly- ing results showed “resilience dur- ing aggressive de-risking”. It saw inflows of SFr10.9bn in assets under management during the first quarter of this year, much of it in the US, bringing the total wealth it manages to SFr1.5 trillion and generating a quarterly pre-tax profit of SFr803m. Revenues at its investment bank bounced back from the last quar- ter of last year in a similar trend to the recovery seen in many of its rivals. But at SFr2.9bn they were still sig- nificantly below the SFr3.5bn it brought in during the strong first quarter of last year.

of the improvement versus the end of last year, however, with revenues rising from SFr1bn to SFr1.5bn. The bank said it was “successfully implementing our strategy” and was on track with its targeted annual cost-savings of SFr2bn. It has also been deleveraging quickly, ditching SFr21bn of risk- weighted assets in its investment bank and bringing its Basel III core tier one capital ratio up to 11.8 per cent. That puts the bank’s capital buffers well above the minimum that will begin to be imposed from next year.

UBS 11.75 2 May 12.00 CHF 11.90 11.80 11.70 11.60 11.50 11.40 11.30
UBS
11.75
2 May
12.00
CHF
11.90
11.80
11.70
11.60
11.50
11.40
11.30

25 Apr 26 Apr 27 Apr 30 Apr 2 May

GETTY
GETTY

UBS chief executive Sergio Ermotti said the bank is “successfully implementing our strategy”

HSBC sells US credit card unit to Capital One

4 NEWS THURSDAY 3 MAY 2012 cityam.com UBS focuses on wealth as its profits plunge Fixed

BY MARION DAKERS

HSBC has netted a $2.5bn (£1.5bn) premium from the sale of its US credit card and retail services business to Capital One. The bank, which agreed the deal last August, said Capital One paid $31.3bn in cash for the assets, including an 8.75 per cent premium over the total loan balances. HSBC has agreed to provide some services linked to the business to Capital One for up to two years, with the option to extend for a further year. Europe’s biggest bank will continue to offer credit cards to American customers, though $400m of the $1.2bn programme will be sold to First Niagara Bank in the coming months. HSBC put the capital-intensive assets up for sale last year as part of chief executive Stuart Gulliver’s radical cost-cutting plans. The bank is axing thousands of UK jobs and selling off non-core assets around the world in a bid to cut £2.2bn from annual costs, shore up capital and improve its bottom line. It sold its general insurance business to AXA and QBE for $914m last month, and is in talks to offload its Mauritius retail banking and wealth management units.

My local business manager was responsible for my lending decision, not a PC. Lidija Newton made
My local business manager
was responsible for my
lending decision, not a PC.
Lidija Newton made the leap from fashion to farming in 2010
and, with the support of her Business Manager, her raspberry
farm is beginning to reap rewards.
• All our 1,700 Business Managers spend time getting to know
your business to help you make the right lending choices
• We consider each customer’s need individually and personally
• We could even help you reduce the cost of borrowing
with the Barclays Cashback Finance Scheme, part of the
Government’s National Loan Guarantee Scheme
• In 2011 Barclays completed over £14billion of new lending to
small and medium sized businesses.
Backed by Barclays, Britain means business.
To see how we can help your business, talk to our Business
Banking team on 0845 301 6306 or visit barclays.co.uk/lendingkit
Business Banking

For BT residential customers, calls will cost no more than 4.5p per minute, plus 13.1p call set-up fee (current at March 2012). The price on non-BT phone lines may be different. Calls may be monitored or recorded for security and training purposes. Over £14billion of new lending includes all credit made available to SME businesses, with a turnover of up to £25million, between 1st January 2011 – 31st December 2011. Barclays Business provides serv ices to firms with a turnover of up to £5million. Loans are subject to application and status. Excludes online applications and automatic overdraft renewals. Terms, conditions and exclusions apply.

Barclays Bank PLC is authorised and regulated by the Financial Services Authority (FSA). Registered No 1026167. Registered Office: 1 Churchill Place, London E14 5HP.

cityam.com

THURSDAY 3 MAY 2012

NEWS

5

Ministers promise to fight against dubious claims of whiplash

  • BY JAMES WATERSON

MINISTERS yesterday urged motor insurers to lower the cost of car insurance, while promising to fight against spurious whiplash claims that have pushed up the cost of premiums. Transport secretary Justine Greening chaired a Whitehall meeting that looked at ways of tackling a “compensation culture” that has pushed the number of claims up by 70 per cent in the last five years – even though the number of recorded accidents fell by a quarter. Around 1,500 whiplash claims are made every day in Britain, something the insurance industry says cost them £2bn last year – equivalent to £90 on every premium. Insurance companies claim it is difficult to dispute whiplash claims and one plan involves

independent panels of doctors who will assess the extent of injuries. Other measures discussed at the summit include a ban on claims from drivers travelling at under 10mph, a ban on referral fees paid by lawyers on personal injury cases and potential methods of encouraging insurers to dispute claims rather than settle out-of-court. Following the summit Greening said: “There is no one silver bullet to tackling fraudulent whiplash claims or reducing young driver premiums but we have already taken decisive action by banning referral fees, reforming no-win no-fee rules and cracking down on fraud.” “We will also work with industry to take full advantage of the use of telematics, or in-car black boxes, to give young people a greater choice of options if they want to drive.”

GETTY
GETTY

In February David Cameron pledged to tackle whiplash claims and reduce premiums

CITYVIEWS

DO YOU BACK THE FIGHT AGAINST WHIPLASH CLAIMS?

ANDY WILLIAMS

ENGINEER

COMMODITIES SOFTWARE

PAUL JACKSON

  • AMODOMA CAPITAL

  • MICHAEL CUSHION
    TATE RECRUITMENT

” ” ”

insurance.

It’s an excellent idea. My wife is a GP and she regularly has people who come with fake

claims – nine out of ten are fraudulent. It’ll reduce my

I suspect premiums are too high. Any crack- down on spurious claims is a good thing.

Twenty to thirty years ago where were all the whiplash

claims? We’ve become an overly litigious society.

It’ll stop people who are just fraudsters but might be a bad thing if you’re genuine and on

the borderline of whatever the criteria is. It’s a bit of a

mixed bag.

These views are those of the individuals and not necessarily those of their company

Numis leaps as new mandates boost outlook

cityam.com THURSDAY 3 MAY 2012 NEWS 5 Ministers promise to fight against dubious claims of whiplash

BY ELIZABETH FOURNIER

SHARES in broker Numis jumped more than 11 per cent yesterday as investors reacted well to a bullish statement from the firm, which said it had seen an improvement in its corporate pipeline. In the last quarter, the firm has won several significant new clients includ- ing insurer Amlin and construction group Morgan Sindall, taking its total roster to 141 clients. Chief executive Oliver Helmsley told City A.M. that sentiment was improv- ing as companies become more com- fortable with ongoing turmoil across the Eurozone.

Numis Corp PLC 90.0 92 p 2 May 90 88 86 84 82 80 26 Apr
Numis Corp PLC
90.0
92
p
2 May
90
88
86
84
82
80
26 Apr 27 Apr 30 Apr
1 May
2 May

Standard Chartered to up investment plans

  • BY JULIET SAMUEL

STANDARD Chartered will acceler- ate its investment plans on the back of what chief executive Peter Sands called a “strong start to

2012”.

The bank gave a trading update yesterday, flagging “high single digit growth” in revenues. That was below its usual double digit growth, however, which the bank blamed mainly on “the continued strength of the US dollar against Asian currencies in the first quar- ter”. Nonetheless, Sands said: “[We] are very well positioned in dynamic markets with strong fundamentals. We are in excellent shape, we are a growth company and are differenti- ated by our liquidity and capital strength.” He told analysts that the bank will now bring forwards its investment plans with a focus on China The one dark spot remains India, where political gridlock and an unpredictable protectionist regime

has slowed activity among StanChart’s corporate clients, lead- ing to “subdued domestic business sentiment in India”, the bank said. That was in contrast to “diverse double digit income growth in Hong Kong, Malaysia, Indonesia, China, the Americas” and even in Britain and the troubled European continent. Sands warned that the bank would continue to keep an eye on “the clear uncertainties” in Europe as a major risk factor to the global economy. The bank saw the biggest growth in its consumer bank, par- ticularly in its deposit accounts, per- sonal loans and credit cards businesses, while wealth manage- ment was “flat” on last year so far and mortgage lending is down. Its wholesale bank, which is large- ly driven by big business clients including Samin Tan, the Indonesian billionaire and part owner of Bumi, grew slightly less strongly “at a high single digit rate over the comparable period in

2011”.

It is seeing intense competition in trade finance from international US banks. Credit Suisse analysts said: “[The update] looks broadly in-line with our expectations, although income growth is slightly weaker (primarily Wholesale Banking, India) offset by lower costs.” Shore Capital broadly agreed, call- ing the outlook “slightly disappoint- ing, in our view, reflecting slower than anticipated income growth. However, this was offset by better than expected performance on costs and impairments.”

Standard Chartered PLC 1,540 p 1,453.00 2 May 1,520 1,500 1,480 1,460 26 Apr 27 Apr
Standard Chartered PLC
1,540
p
1,453.00 2 May
1,520
1,500
1,480
1,460
26 Apr 27 Apr 30 Apr
1 May
2 May

Chesapeake set for probe

  • BY CITY A.M. REPORTER

US Senator Bill Nelson plans to ask the Justice Department to investigate Chesapeake Energy Corp for potential fraud and price manipulation, an aide to the lawmaker said. Chesapeake shares fell nearly 15 per cent to close at $16.74 on the New York Stock Exchange, their largest decline in over three years.

Greenspan bullish on stocks yet warns over house slump

cityam.com THURSDAY 3 MAY 2012 NEWS 5 Ministers promise to fight against dubious claims of whiplash

BY JULIAN HARRIS

ALAN Greenspan, previously head of the US Federal Reserve, said yesterday that equities remain good value, yet warned that the housing slump is weighing on America’s recovery. “Stocks are very cheap,” Greenspan said, “There is no place for earnings to grow except into stock prices.”

But Greenspan warned that the US housing sector is “going nowhere” adding that a lack of investment in buildings is knocking “three to four per cent” off GDP. The ex Fed chairman also told Bloomberg that “central banks are moving into fiscal policy because they’re being politically forced to do so”, which he called an “undesirable trend”.

 
 
TOTAL CONTROL MEETS PURE EMOTION
TOTAL CONTROL
MEETS PURE
EMOTION

THE NEW 2012 V8 VANTAGE

THE NEW 2012 V8 VANTAGE

FROM £84,995 *

 
FROM £84,995
FROM £84,995

With its unique blend of power and performance, dynamic agility and hand-crafted refinement, nothing will prepare you for the unique emotional pull of an Aston Martin V8 Vantage.

ENGLAND

Derbyshire

Surrey

Stratstone Aston Martin

HWM Aston Martin

 

Berkshire

Lancaster Aston Martin

08444

172 921

08444

172 907

08444

172 914

Devon

Tyne & Wear

 
 

Grange Aston Martin

Stratstone Aston Martin

Buckinghamshire

Aston Martin Works

08444

172 905

08444 172 926

 

08444

172 939

Essex

West Midlands

Stratstone Aston Martin

08444

172 918

Grange Aston Martin

Brentwood CM14 5LU

Stratstone Aston Martin

08444

172 923

Cambridgeshire

Lancaster Aston Martin

08444

172 913

08444

172 904

Gloucestershire

Broughtons Aston Martin

West Sussex

Harwoods Aston Martin

08444

172 906

Central London

Stratstone Aston Martin

08444

172 924

08444

172 901

Hertfordshire

Grange Aston Martin

Yorkshire

JCT600 Aston Martin

08444

172 912

 

08444

172 903

Channel Islands

Cheshire

Stratstone Aston Martin

08444

172 927

Kent

Lancaster Aston Martin

08444

172 915

Jacksons (C.I.) Ltd.

08444

172 908

SCOTLAND

WALES

NORTHERN IRELAND

Murray Motor Company

Stratstone Aston Martin

Charles Hurst Limited

 

08444

172 916

08444

172 925

08444

172 902

Visit www.astonmartin.com/new-vantage to find out more.

Official government fuel consumption figures in mpg (litres per 100km) for the Aston Martin V8 Vantage (Manual/‘Sportshift II’**): urban 14.4/14.7 (19.6/19.2); extra-urban 27.2/30.4 (10.4/9.3); combined 20.5/21.9 (13.8/12.9). CO 2 emissions 321/299 g/km.

* Terms and conditions apply. RRP £84,995 quoted price is based on a 2012 V8 Vantage coupe manual with standard specification and excludes on the road charges. The quoted price is the RRP on a cash sale/purchase of the base car, and may be subject to among others, any finance package required (if any) and particular options selected. Please enquire at participating dealers for further information and a specific quotation based on your choices. Only available at participating dealers within the UK while stocks last. Individuals must be aged 18 or over and purchases must be made in the UK. ** ‘Sportshift’ trademark is used under licence from Prodrive (Holdings) Ltd. Full terms and conditions are available from a participating dealer.

6

NEWS

THURSDAY 3 MAY 2012

cityam.com

 

IN BRIEF

Oodles of cash: no wonder Murdoch wanted to buy

Barrick Gold hikes payout 33pc

n Barrick Gold, the world’s biggest gold miner by output, yesterday raised its dividend by 33 per cent as it

RBS to put aside £125m for PPI

n RBS is expected to announce at

S O that’s what all the fuss was

about. Anyone wondering why

Rupert Murdoch wanted to buy

BSkyB outright, and why he will

BOTTOM LINE DAVID CROW
BOTTOM
LINE
DAVID CROW

high-definition TV offerings. The

just 31 per cent of its total subscriber base, leaving room for lots of

is still around £1 less than the 800p or more that most analysts think the

reported a higher quarterly profit.

potential converts.

company is worth. That chiefly

Barrick reported net income of

So far, it has achieved good results

reflects the chance that News Corp

$1.03bn, or $1.03 a share in the quarter

not sell down his 39 per cent stake

by matching specialised content with

could become a forced seller, leaving

ended 31 March, up from $1bn, or $1 a share, a year earlier. Barrick said its average realised gold price for the first quarter was $1,691 per ounce, up more than 20 per cent on a year ago.

tomorrow’s first quarter results that it will set aside a further £125m to cover compensation for mis-selling loan

without a fight, need only look at the satellite broadcaster’s third quarter results. Although the 15,000 new TV subscribers added in the quarter is nothing compared to its glory days, it has found a way of growing profits and cash flow even as the pay-TV market approaches saturation point. Its strategy of getting more cash out of existing customers is paying off. Sky sold 904,000 net new products in the quarter, mostly to existing

average customer paid £546 in the quarter, £9 more than they did a year ago and £90 more than in 2009. There is plenty more where it came from. Sky has 3.2m so-called “triple-play” customers, subscribers who take a broadband, telephone

premium products. Many of the 159,000 subscribers who signed up for high-definition TV did so because of the new Formula 1 HD channel. Most importantly, for Murdoch at least, is that the company is running off oodles of cash now that an era of big investments has drawn to a close. It generated £1.2bn of cash in the nine months to the end of March, a sum that would be very useful for a media behemoth like News Corp.

an overhang of stock. There are other worries too. Although it is Ofcom’s “fit and proper” investigation that is dominating the headlines, it is also investigating whether Sky is too dominant in the premium movie market, having already loosened its grip on premium sports. Sky might be used to such regulatory wrangling, but there are testing times ahead even so.

insurance. The sum will take RBS’ total bill for misleading investors about loan insurance to more than £1bn.

customers, thanks in large part to strong take-up of its broadband and

and TV service. That is more than any of its rivals, but it still represents

BSkyB shares added 1.5 per cent yesterday to close at 701.5p, but that

insurance. The sum will take RBS’ total bill for misleading investors about loan insurance to more

david.crow@cityam.com Follow me on Twitter: @davidcrow83

 
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted
 
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted
 
 
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted
 
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted
 
6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted

BSkyB beats

forecasts with record profits

  • BY MARION DAKERS

BSKYB yesterday shrugged off the furore surrounding its parent firm News Corp to post a record profit for the nine months to March. As rumours swirled about the firm’s future following a parliamentary report criticising News Corp and owner Rupert Murdoch, BSkyB deliv- ered operating profit of £908m. Pre- tax profit rose 27.5 per cent to £899m. “We have made a very strong start to 2012, making good progress right across the board,” said chief executive Jeremy Darroch. “We’re delivering good growth, not just in new house- holds, but with our other products as well, despite the difficult economic backdrop.” The media group gained a net 904,000 subscriptions in the first quarter of the year. Sky now has 27.7m subscriptions on its books, with the average customer taking 2.6 products, up 0.2 on a year ago as the firm’s “triple play” focus on phone, broad- band and TV bundles takes hold. Average revenues per customer rose by £9 to £546 despite a freeze in sub- scription fees. Overall revenue rose five per cent to £5.1bn. “The results were pretty solid, slight- ly ahead of our forecasts with good momentum throughout the busi- ness,” Peel Hunt analyst Patrick Yau

said. “There is the new Now TV prod- uct launch to look forward to, and the investment in content seems to have translated into better customer trac- tion.” While the results came in slightly above analyst forecasts, many fretted that the uncertain outcome of Ofcom’s probe into Murdoch’s owner- ship of 39 per cent of BSkyB, was weighing the firm down. “The headlines have been pretty aggressive towards News Corp, and they could see this as unnecessary stress. Ofcom’s decision could be the catalyst for a sale,” Charles Stanley ana- lyst Richard Nunn told City A.M.. While it is far from certain that Ofcom will order a sale, Nunn put Apple and Google in the frame as potential buyers, given their large cash piles. Others also pointed to rival TV groups ITV and Virgin as logical fits.

6 NEWS THURSDAY 3 MAY 2012 cityam.com IN BRIEF Oodles of cash: no wonder Murdoch wanted

British Sky Broadcasting Group PLC

p 701.50 720 2 May 710 700 690 680 670 26 Apr 27 Apr 30 Apr
p
701.50
720
2 May
710
700
690
680
670
26 Apr 27 Apr 30 Apr
1 May
2 May

Sarkozy and Hollande clash on Eurozone during live TV debate

  • BY CITY A.M. REPORTER

FRENCH President Nicolas Sarkozy and socialist challenger Francois Hollande clashed repeatedly in their televised debate yesterday, with the conservative incumbent sounding angry and on the defensive four days before the vote. Trailing Hollande in opinion polls by six to 10 points before Sunday’s decisive runoff despite an energetic campaign and a lurch to the right to appeal to far-right voters, Sarkozy said he wanted the

prime-time debate to be a “moment of truth”. “The example I want to follow is Germany and not Spain or Greece,” the president said, declaring that he and Angela Merkel had saved Greece from an economic wipeout and avoided the collapse of the euro currency. “Europe has got over it,” Sarkozy said of the crisis. Hollande shot back: “Europe has not got over it. Europe is today facing a possible resurgence of the crisis with generalised austerity, and that’s what I don’t want.”

I AM THE MERCHANT. EVERY ONE OF MY FINE WINES IS HANDPICKED BY MY VERY OWN NOSE.

I AM THE MERCHANT. EVERY ONE OF MY FINE WINES IS HANDPICKED BY MY VERY OWN
I AM THE MERCHANT. EVERY ONE OF MY FINE WINES IS HANDPICKED BY MY VERY OWN
I AM THE MERCHANT. EVERY ONE OF MY FINE WINES IS HANDPICKED BY MY VERY OWN
I AM THE MERCHANT. EVERY ONE OF MY FINE WINES IS HANDPICKED BY MY VERY OWN
I AM THE MERCHANT. EVERY ONE OF MY FINE WINES IS HANDPICKED BY MY VERY OWN

8

NEWS

THURSDAY 3 MAY 2012

cityam.com

Angry Osborne refuses to sign EU banks pact

BY JULIET SAMUEL Denmark, which currently holds the

8 NEWS THURSDAY 3 MAY 2012 cityam.com Angry Osborne refuses to sign EU banks pact Denmark,

IN BRUSSELS

THE FIRST major negotiation on Europe’s most important banking reforms degenerated into a slanging match between the UK and European Commission last night, with both sides refusing to budge from their opposing positions. Finance ministers had called an extraordinary meeting in Brussels in an attempt to break months of dead- lock on a new set of banking rules known as “CRD 4”. Instead, they ended up arguing late into the night, with chancellor George Osborne complaining that it had caused him to miss hosting a din- ner party and saying of the proposals on the table: “I am not prepared to go out there and say something that is going to make me look like an idiot five minutes later.” But EU commissioner Michel Barnier dug his heels in, suggesting that if Britain would not give in then it would have to go it alone. It had appeared earlier in the day that the EU’s 27 countries would reach a compromise brokered by

rotating EU presidency. But despite an increasing number of countries sign- ing up to the UK’s position, including Sweden, Spain and Poland, their oppo- nents – led by Barnier, France and Germany – made no concessions. At stake is the degree to which national regulators will be allowed to beef up EU capital requirements for their banks without seeking Brussels' approval. The rules are meant to be based on the internationally agreed Basel III capital rules, but the UK says they diverge widely from that frame- work. Osborne insists that Britain needs legal power to toughen up the rules beyond the technical standards in the commonly agreed rulebook. And he also says that the current text outlin- ing those minimum standards is “watered down” from Basel. “If we walk away from this table with 27 countries all having gotten some kind of concession for their national banking issues, we will have completely failed and it won’t just be a political failure; it will be potential- ly a serious economic failure for our continent,” said Osborne.

GETTY
GETTY

Osborne accused EU ministers of considering a deal that would make him “look like an idiot”

WHAT ARE THEY ARGUING ABOUT?

n Europe is trying to implement the Basel III internationally agreed regulations aimed at making banks safer. The EU version of the rules is currently a 600-page piece of regulation known as “CRD IV” and it has proven to be the most controversial financial reform currently under negotiation.

n The biggest row is over the powers states should have to water down or beef up the rules, such as whether they can tack on an extra three to five per cent onto banks’ minimum capital requirements.

n France and Germany want a more lax regime to suit their banks, whereas the UK, Sweden and Spain want a tougher regime with the freedom to beef it up further on a national level.

n There is also a fight over the definition of capital for banks that own insurers, whether liquidity requirements should be included in some form, and how stringent any leverage ratio should be.

n There is another meeting of finance ministers on 15 May, where the row will doubtless continue.

Manufacturing down across the Eurozone

8 NEWS THURSDAY 3 MAY 2012 cityam.com Angry Osborne refuses to sign EU banks pact Denmark,

BY TIM WALLACE

EUROZONE manufacturing output slumped in April, with all four major economies suffering from the downturn, data showed yesterday. Unemployment hit a record high of 10.9 per cent in March, and both sets of data contributed to stocks plummeting in Spain and Italy Factory production declined sharply last month, Markit’s purchasing managers’ indices (PMI) revealed.

For the Eurozone as a whole, the index fell to a 34-month low of 45.9, a much sharper drop than the 47.7 recorded in March. Any figure below 50 indicates falling activity. German PMI came in at 46.2, French at 46.9, Spanish at 43.5 and Italian at 43.8. Meanwhile unemployment hit

  • 10.9 per cent in March, Eurostat said,

up from 10.8 per cent in February and from 9.9 per cent in March 2011. The highest rates are in Spain at

  • 24.1 per cent and Portugal at 15.3,

while Greece’s most recent data showed unemployment at 21.7 per cent in January. Youth unemployment stands at

  • 22.1 per cent for the Eurozone as a

whole, and 51.1 per cent in Spain. Stocks plummeted 2.55 per cent yesterday on the Spanish IBEX due to the sustained gloomy news, while the Italian FTSE MIB tumbled by 2.6 per cent.

8 NEWS THURSDAY 3 MAY 2012 cityam.com Angry Osborne refuses to sign EU banks pact Denmark,
DON’T MISS OUR BLOCKBUSTER TRADING & INVESTMENT CONFERENCE Where the markets are going, which asset classes
DON’T MISS OUR BLOCKBUSTER
TRADING & INVESTMENT
CONFERENCE
Where the markets are going, which asset classes are best, how to make
the most of global macroeconomic uncertainty, the best techniques and
models and how to use social media and charting to beat the pros.
Over 30 of the world’s top
trading experts
15 exhibitors showcasing the
latest trading technology
Take your trading to the next
level with a day of masterclasses
Network over lunch and at our
free champagne reception
DAVID
TIM
ALLISTER
RICHARD
LEX
JONES
GUINNESS
HEATH
FARLEIGH
VAN DAM
DAVID
GUIDO
STEPHEN
JOHN
GARY
KUO
FAWKES
SEDGWICK
HARDY
BAKER
24th MAY 2012
THE GRANGE HOTEL, TOWER BRIDGE
cityamactivetrader.com
0203 201 8900
or call
Produced by
In association with
Champagne reception sponsor
  • NEWS

Henderson sees £850m outflow as turmoil bites

BY PETER EDWARDS benchmarks over the past year and

investment performance helped lift

SHARES in fund manager Henderson

total assets under management 3.7

dropped 5.39 per cent yesterday after

it posted a net outflow of £857m in

per cent to £66.7bn.

Formica said the group has made “a

the first quarter.

The stock closed at 115.8p after the

number of changes and new hires” in

distribution and fund management to

Anglo-Australian group reported a

further decline in its low-margin insti-

get to positive net fund flows.

Analysts said the fall in Henderson’s

tutional business. It experienced a net

first-quarter institutional outflow of

£610m, a net drain of £110m at its

retail arm, mainly from its British

funds, and a £137m outflow from

share price was partly due to the

shares going ex-dividend yesterday.

Just over 17.5 per cent of votes were

cast against the remuneration report.

n HENDERSON has transferred the

insurance clients.

Chief executive Andrew Formica

said he was “disappointed” with net

fund outflows, which contrast with

Aberdeen Asset Management, which

this week posted a £2.4bn net inflow

for the first three months of the year.

“Although equity markets are high-

er than at the beginning of the year,

continued market volatility and eco-

nomic uncertainty during the period

have kept investor demand for risk

assets subdued. However

...

investment

performance has been strong.”

Henderson said 67 per cent of its

equity funds and 74 per cent of its

bond funds were outperforming

£160m legacy pension fund of

Gartmore to Pension Corporation.

Henderson bought Gartmore in a res-

cue merger last year.

Henderson Group PLC 124 p 115.80 2 May 122 120 118 116 26 Apr 27 Apr
Henderson Group PLC
124
p
115.80
2 May
122
120
118
116
26 Apr 27 Apr 30 Apr
1 May
2 May
NEWS Henderson sees £850m outflow as turmoil bites benchmarks over the past year and investment
NEWS Henderson sees £850m outflow as turmoil bites benchmarks over the past year and investment
NEWS Henderson sees £850m outflow as turmoil bites benchmarks over the past year and investment

THURSDAY 3 MAY 2012

NEWS Henderson sees £850m outflow as turmoil bites benchmarks over the past year and investment

ODGERS BERNDTSON HEADS FOR CANNON ST

NEWS Henderson sees £850m outflow as turmoil bites benchmarks over the past year and investment

CITY headhunting firm Odgers Berndtson is to move its headquarters from the West End to Allied London and Aerium J’s development near St Paul’s cathedral in the City (pictured above).

The company has agreed to lease the entire 40,000 square foot building at 20 Cannon Street, which is due to be completed this month.

cityam.com

IN BRIEF

CAP fits for buyout firm Montagu

n Private equity house Montagu has agreed to buy used car data provider CAP from Top Right Group, formerly known as Emap International. The value of the deal was not disclosed but Montagu will pay around £170m. Top Right, owned by Guardian Media Group and Apax Partners, is being split into three standalone companies.

Deutsche Lufthansa hit by fuel costs

n Deutsche Lufthansa, Germany's biggest airline, said yesterday that soar- ing fuel costs have triggered a bigger than expected first-quarter loss and forecast it might only hit its profit target if costs from a new restructuring plan were excluded. The operating loss for the first three months of the year more than dou- bled to €381m (£309m) from €169m a year earlier, it said yesterday.

Hong Kong firm to buy Aquascutum

n Collapsed clothing retailer Aquascutum could be bailed out of administration in the next week after administrators FRP Advisory said it had entered exclusive talks with Hong Kong’s YGM Trading, which already owns the rights to the brand in Asia.

Munch’s Scream goes on the block

n Edvard Munch’s “The Scream” was set to be auctioned at Sotheby’s in Manhattan last night. The iconic piece is expected to break new ground at the famed New York auction house with its pre-sale estimate of at least $80m, the highest pre-sale amount ever listed at Sotheby’s.

NEWS Henderson sees £850m outflow as turmoil bites benchmarks over the past year and investment
cityam.com THURSDAY 3 MAY 2012 NEWS 11 December Ken and Boris: The Story So Far 5
cityam.com
THURSDAY 3 MAY 2012
NEWS
11
December
Ken and Boris: The Story So Far
5
Ken pledges to cut
fares by seven per cent.
January
19
KEN LIVINGSTONE
n
Promises to cut public transport
Revelations that Ken
paid himself
through a company
called 'Silveta' lead
to allegations of
hypocrisy over
tax arrangements.
YouGov poll:
Candidates in
final pitch to
London voters
March
51-49 to Ken.
fares by seven per cent and then
peg future rises to inflation
11
BY JAMES WATERSON
n
Reintroduce Educational
Maintenance Allowance for young
Londoners
The Jewish
Chronicle reports
Livingstone said
“rich Jews won't
vote Labour”.
BORIS Johnson and Ken Livingstone
yesterday made their final appeals to
April
voters as today’s mayoral election
n
Help parents back into work
remains too close to call.
with improved childcare services
March
Livingstone has fought his way
n
Save Londoners £150pa on
3
back into the race and the most
energy bills by buying fuel through
Transport for London contracts
20
March
recent YouGov poll placed him just
four percentage points behind
21
Conservative Boris Johnson.
n
Reinstate police sergeants to
Privately neither side is confident
600 Safer Neighbourhood teams
of victory and both expect the level
n
Lobby for extensions to South
YouGov poll:
“Rift in a Lift” as Johnson
swears at Livingstone over
allegations of tax evasion.
of turnout and enthusiasm
London’s Tramlink and the DLR
amongst core supporters to be the
54-46 to Boris.
decisive factor.
April
In the final few days Livingstone
BORIS JOHNSON
Promises to put 1,000 more
Ken cries at launch
of his manifesto.
Green Jenny Jones says candidates
should release income tax details.
All follow suit, but Ken declines to
issue the full “Silveta” accounts.
has concentrated on associating the
current mayor with the unpopular
5
Conservative-led government. Last
n
night he said: “The David Cameron-
police officers on the street
Boris Johnson love-in clarifies the
April
n
Create 200,000 new jobs and
very serious stakes for Londoners. It
ranked
Top MBA
expand apprenticeship scheme
BUSINESS WITH PERSONALITY
HINDMARCH
BAGS
is two Tory peas in a pod. The Tory
TROUBLE AT TESCO
BUSINESS
TROPHY
RETAIL GIANT UNVEILS TURNAROUND PLAN
See Page 14
See Pages 6 & 7
PM wants you to vote for the Tory
THURSDAY 19 APRIL 2012
www.cityam.com
FREE
n
Reduce City Hall’s share of
11
ISSUE 1,615
April
City A.M. reveals Ken
uses private healthcare.
Labour’s Lord Sugar
says: “I seriously
suggest NO ONE votes
for Livingstone”.
KEN ADMITS HE USES
mayor so that they can keep going
council tax by 10 per cent
PRIVATE HEALTHCARE
with Tory policies that mean
Save
London’s
petition
earlier
MAYORAL
this
year,
Livingstone
said:
“The
people
of
capital
city
deserve
n
Bid to take control of key
ELECTION
quality
care
and
our
health
care
should
not
broken
up,
sold
EXCLUSIVE
off
be
privatised
by
the
back
door.”
BY DAVID
A The or
admission
comes
just
weeks
AND
JAMES CROW
WATERSON
after
Livingstone
was
widely
recession, fare rises and
KEN
Livingstone,
of the
of Labour
criticised
channeling
his
candidate
Mayor
London
and
through
company
to
reduce
his
noted
be opponent uses
NHS
bills,
despite
describing
people
who
privatisation,
private
healthcare
use
these
kind
legal
tax
planning
services,
City
to A.M.
has
learned.
measures
as
“rich
bastards”.
suburban rail services
19
a A spokesperson
for
the
66-year-old
spokesperson
for
Boris
Johnson,
Livingstone said
Livingstone’s
Tory
opponent
as the top tax we we in as of a
he uses an “external
provider” for
in an
incumbent
Mayor,
said:
annual check-ups,
admission
that is
sure
to lead to
“This
is
yet
example
accusations of hypocrisy.
Ken
Livingstone’s
hypocrisy
saying
police cuts.”
“Like
many
people
he
has
an
one
thing
but
another.
annual check
an external
discover
a that of our for
up from
the
same
provider – if he
ever needs to see a
attacking
tax
in does avoiders,
saying
they
doctor
for anything it is with his
shouldn’t
be
to
candidate
and NHS
privatisation
Labour mayoral
opponent Ken Livingstone has admitted he uses an “external provider” for annual check-ups
NHS services,”
elections,
he
at of NHS another allowed avoiding NHS an demand be this
is
tax
– vote time Now First and himself income
local GP, or with other
a
spokesperson
an annual
an
orgasm
because
so fit.
My
pounds
several
thousand,
and
standing
election.
told City A.M. last
check up for “ten years”,
night.
adding “I’m
as fit
as
I’ve ever
been”.
heart,
liver and
kidneys,
I’m the
whole
although
it to is not
known how
much
learn
that
while
campaigning
At
a lunch with
He added: “I’ve lost a
stone on this
lot
are
absolutely amazing.”
Livingstone’s
defender
the
he
uses
private
political reporters
annual appointments
in Westminster
earlier
this week,
campaign. I
went
for
my annual
Private
cost.
healthcare.
How
can
Londoners
check-ups generally cost
n
Invest in tube infrastructure and
Livingstone said he had
medical
and the
had
anything
from
several
hundred
for
believe
anything
man
says?”
been having
doctor almost
In a post
the Labour party’s
Johnson said “every vote
national
tanker strike will go ahead
Fuel drivers reject deal raising fears
BY
table did
Mediator
said
contacting
union must
call a strike,
said the proposal on the
Pinsent Masons. The
give seven-
MARION DAKERS
sides
help
break
action.
not go far for enough
on work standards and
the it – impasse. ballot for was was
days’ notice
of any industrial
THE THREAT of a
national fuel tanker strike
security
the
“It
seemed
there
the
basis
deal
Energy secretary
Ed Davey
said
he was
1,200 drivers it represents.
reared its
yesterday
head again
The truckers
have asked
to
at
last
week
but
now
they
of have both
48
disappointed and urged the
when union reps
talk again with
the
two sides to
avoid
reduce delays by 30 per cent
will count” before adding:
six
involved to try and
hours
as set if
dates
strike
action
they
firms after
a strike despite
the “complex
the six fuel companies
issues” involved.
rejected a deal with distribution
days
of talks.
Unite’s
four week-long
are
to
to keep or end
strike
alive,”
at said
if firm a Chris
The government
the type of
reach a deal before
is keen to avoid
Unite
the union, which
has until
Friday to
Mordue,
so of their to Acas employment
an
partner
law
panic-buying
seen earlier this
month.
April
mandate to name a strike date expires.
FTSE 100
▼5,745.29
-21.66 DOW
▼13,032.75
-82.79
NASDAQ
▼3,031.45
-11.37
£/$
▲1.60
+0.01
£/€
▲1.22
+0.01
€/$
1.31 unc
Certified Distribution
27.02.2012
till 01.04.2012
is 99,462
MBA:
World Impact.
“The choice today is simple;
London Experience.
Business
May knowledge June
and
at and 19.00 our networks -
take
further, and
faster.
n
Promote regeneration schemes
Attend
an 15 skills, information alumni,
event
central
to London
speak
with
students
admissions
staff: you campus
Tuesday
2012,
19.00
21.00
Wednesday
13
2012,
- 21.00
going forward with my plan
Visit
www.london.edu/mba/
in riot-hit areas
n
Access extra funding for London
30
to invest in the things that
YouGov poll 52-48 to Boris. Fears of
electoral fraud in Tower Hamlets.
will create jobs and growth,
from Conservative colleagues in
Downing Street
or going back to Ken
Livingstone who would put
that investment at risk.”
LAURA LEAN/CITY AM
cityam.com THURSDAY 3 MAY 2012 NEWS 11 December Ken and Boris: The Story So Far 5
cityam.com THURSDAY 3 MAY 2012 NEWS 11 December Ken and Boris: The Story So Far 5
cityam.com THURSDAY 3 MAY 2012 NEWS 11 December Ken and Boris: The Story So Far 5
cityam.com THURSDAY 3 MAY 2012 NEWS 11 December Ken and Boris: The Story So Far 5
cityam.com THURSDAY 3 MAY 2012 NEWS 11 December Ken and Boris: The Story So Far 5
cityam.com THURSDAY 3 MAY 2012 NEWS 11 December Ken and Boris: The Story So Far 5

12

NEWS

THURSDAY 3 MAY 2012

cityam.com

Next’s online sales help offset weaker trading on high street

12 NEWS THURSDAY 3 MAY 2012 cityam.com Next’s online sales help offset weaker trading on high

BY KASMIRA JEFFORD

NEXT said yesterday that customers

flocking to buy clothes through its

online Directory business helped

offset a fall in first quarter sales at

its high street stores.

Total Next sales rose 1.4 per cent

in the three months to 28 April, the

high street chain said.

While retail sales across its 536

fashion and homewares stores fell

3.9 per cent, its online and

catalogue business Next Directory

made up the difference delivering

growth of 11.8 per cent.

The group, the UK’s second-largest

clothing retailer, said second quarter

sales would be up against less

demanding comparatives compared

with the first quarter of last year

when sales rose 5.2 per cent on the

back of an exceptionally warm

Easter and the Royal Wedding.

Chief executive Simon Wolfson

maintained his forecast for the

group and said first-half profit

should be ahead of last year.

It is forecasting profits of £560m

to £610m for the year to January

2013 if sales increase by between one

per cent to four per cent. Last year’s

pre-tax profits were £570m.

Shares closed up 2.6 per cent to

2,971p yesterday.

Next PLC 2,971.00 2 May 3,000 p 2,980 2,960 2,940 2,920 2,900
Next PLC
2,971.00 2 May
3,000
p
2,980
2,960
2,940
2,920
2,900

26 Apr 27 Apr 30 Apr 1 May

2 May

12 NEWS THURSDAY 3 MAY 2012 cityam.com Next’s online sales help offset weaker trading on high

JOHN LEWIS CHAIRMAN BAGS £1M

12 NEWS THURSDAY 3 MAY 2012 cityam.com Next’s online sales help offset weaker trading on high

CHARLIE Mayfield, chairman of the John Lewis Partnership, took home a total salary of £954,000 last year. Mayfield’s base salary was £825,000, with additional payments including a partnership bonus of £115,000 – equal to the 14 per cent bonus awarded across the group. The firm said Mayfield’s salary was 60 times the average basic salary of its non- management staff.

Home Retail to scrap payout as profit falls 61pc

12 NEWS THURSDAY 3 MAY 2012 cityam.com Next’s online sales help offset weaker trading on high

BY KASMIRA JEFFORD “extra resource” to help Argos’ new

chief executive John Walden conduct

HOME RETAIL GROUP, the owner of

a review of the business.

Argos and Homebase, has scrapped

its final dividend for the first time in

six years after reporting a 61 per cent

slump in full-year profit.

Chief executive Terry Duddy con-

tinued to defend his strategy for the

group, saying there would not be “an

en masse store closure programme”

of Argos stores in the near future.

Sales at the catalogue chain fell

eight per cent to £3.87bn as it contin-

ued to be hit by weak demand for

consumer electronics which, exclud-

ing laptops and tablets, accounted

for around 80 per cent of the sales

decline.

Overall pre-tax profits fell to £98m

in the year to 25 February compared

with £265.2m the previous year on

sales down five per cent to £5.58bn.

Homebase sales fell three per cent

to £1.51bn.

Duddy confirmed OC&C

Consultants had been hired as an

However he denied that this would

lead to more store closures, saying it

“wouldn’t make any sense” financial-

ly, when all but seven of the cata-

logue chain’s 750 stores were

profitable. Nearly 90 per cent of sales

come through stores at some point.

The group plans to close 10 stores

this year and will continue to review

the 300 or so stores coming up for

lease renewal over the next five years.

Home Retail Group PLC 110 p 87.55 2 May 105 100 95 90 85 26 Apr
Home Retail Group PLC
110
p
87.55
2 May
105
100
95
90
85
26 Apr 27 Apr 30 Apr
1 May
2 May
12 NEWS THURSDAY 3 MAY 2012 cityam.com Next’s online sales help offset weaker trading on high

Home Retail chief executive Terry Duddy denied there would be more Argos store closures

ANALYST VIEWS

Interviews by Kasmira Jefford

DID HOME RETAIL PROVIDE ANY CLARITY ON PLANS TO STEM THE DECLINE?

SIMON IRWIN LIBERUM

There is almost nothing in the statement about what management is

going to do to arrest the decline in sales and profitability. Consequently it still

appears that any significant degree of change is now unlikely until 2013.

12 NEWS THURSDAY 3 MAY 2012 cityam.com Next’s online sales help offset weaker trading on high

KEITH BOWMAN HARGREAVES LANSDOWN

For now, Home remains arguably the retail equivalent of the “canary in

the mine” ...

In all, with such big questions still to be answered, consensus opin-

ion remains cautious, denoting a “sell”.

12 NEWS THURSDAY 3 MAY 2012 cityam.com Next’s online sales help offset weaker trading on high

PHILIP DORGAN PANMURE GORDON

While trade is being affected by the weather – and this will drive further

forecast reductions – there are bigger, structural issues for it to overcome. We think

that it needs to be much more radical if it is to survive in an online world.

12 NEWS THURSDAY 3 MAY 2012 cityam.com Next’s online sales help offset weaker trading on high

Wetherspoon rallies against higher taxes

12 NEWS THURSDAY 3 MAY 2012 cityam.com Next’s online sales help offset weaker trading on high

BY KASMIRA JEFFORD

PUBS OPERATOR JD Wetherspoon

said yesterday “unsustainable”

higher costs from a tough tax

regime in Britain left it cautious on

full-year prospects, even as it

reported a rise in third-quarter sales.

The company, which has over 800

pubs across Britain, said its tax bill

in the current financial year would

be about half a billion pounds, up

nearly £50m from last year.

“We have also created

approximately 3,000 jobs in the

same period, but all of the economic

benefits of our expansion are

currently being levied by the

government as taxes – an

unsustainable situation,” said

chairman Tim Martin.

During the third-quarter, like-for-

like sales for the 13 weeks to 22

April were up two per cent, while

total company sales rose 8.4 per

cent. Wetherspoon said operating

margin during the period was 8.1

per cent, down from 9.3 per cent in

the first half. The company warned

that second-half margins would still

be lower than the first half. “We

continue to be slightly more

cautious about the potential

outcome for the current financial

year,” it said. The firm expects a full-

year pre-tax profit of £67.4m.

12 NEWS THURSDAY 3 MAY 2012 cityam.com Next’s online sales help offset weaker trading on high
half the price, all the comfort 50% OFF NUVO COLLECTION SOFAS ABODE 3 SEATER HALF PRICE
half the price,
all the comfort
50%
OFF
NUVO COLLECTION
SOFAS
ABODE
3 SEATER
HALF PRICE
£12.06
£579
A MONTH
NO DEPOSIT
NO INTEREST
EVER
AFTER EVENT PRICE
£1158
Visit your nearest store, order direct at www.dfs.co.uk or call free on 0800 110 5000 24 hours a day, 7 days a week
4 years interest free credit on everything 0 % APR Or pay nothing until January 2013
4 years interest free credit on everything
0 %
APR
Or pay nothing until January 2013 then take 3 years
interest free credit
REPRESENTATIVE
half the price, all the comfort 50% OFF NUVO COLLECTION SOFAS ABODE 3 SEATER HALF PRICE

No deposit with 4 years interest free credit. 48 equal monthly payments of £12.06. Or pay nothing until January 2013 then 36 equal monthly payments of £16.08. 0% APR. Total £579.

14

NEWS

THURSDAY 3 MAY 2012

cityam.com

Everything Everywhere grows as users turn to smartphones

14 NEWS THURSDAY 3 MAY 2012 cityam.com Everything Everywhere grows as users turn to smartphones BY

BY LAUREN DAVIDSON

EVERYTHING Everywhere, the UK’s

largest mobile network provider,

yesterday reported a strong uptake

of smartphones in its first quarter,

boosting core growth.

Underlying service revenues,

excluding the impact of regulatory

cuts, grew by 2.9 per cent in the first

quarter to £1.5bn.

But enforced cuts to mobile

termination rates – the amount

telecoms companies charge each

other to host calls on their

networks – dragged service revenues

down by 2.5 per cent.

The company did not disclose any

other financial details but said it

remains on track to deliver its

targeted £3.5bn of cost savings by

Olaf Swantee, who is pushing for an

imminent rollout of 4G in the UK,

told City A.M.

  • 2014. Everything Everywhere has faced

Everything Everywhere, the

parent brand of Orange and T-Mobile

in the UK, reported the penetration

of smartphone users on postpaid

contracts rose to 71 per cent from 57

per cent in the same quarter last

year.

Data revenues now account for

almost half of all income, having

jumped 17 per cent to 45.5 per cent.

“This country has a tremendous

appetite for data, and we need to

have networks that are built from

scratch to support it,” chief executive

criticism from its telecoms rivals for

attempting to upgrade its current

spectrum for the latest generation of

mobile network ahead of the Ofcom

spectrum auction later this year.

But Swantee said he was

“surprised” at the response from

other mobile network providers.

“The whole industry has to step up

now and move to 4G,” he added.

The company reported an

improved customer churn of 1.2 per

cent as it gained 151,000 new users

in the period.

Court in Germany rules against Microsoft in tech patent fight

  • BY CITY A.M. REPORTER

A COURT in Mannheim ruled

yesterday that Microsoft had

infringed Motorola Mobility’s

patents, and ordered Microsoft to

remove its popular Xbox 360

gaming consoles and Windows 7

operating system software from the

German market.

However, Microsoft said that the

ruling did not mean that its

products would be taken off

retailers’ shelves because a US

district court in Seattle has granted

Microsoft a preliminary injunction

against Motorola to prevent the

phone maker from enforcing any

German court order.

“Motorola is prohibited from

acting on today’s decision, and our

business in Germany will continue

as usual while we appeal this

decision and pursue the

fundamental issue of Motorola’s

broken promise,” Microsoft said in

a response to the ruling.

German judge Holger Kircher

said Microsoft had breached an

agreement with Motorola Mobility,

which is in the process of being

bought by Google, in using certain

video-compression software in

products including Windows 7 and

Xbox. But following complaints by

Microsoft and Apple the EU

competition authorities have

opened two investigations into

whether Motorola has been over-

charging for the use of its patents

in their rival products.

One-man firms worth a billion could be reality

14 NEWS THURSDAY 3 MAY 2012 cityam.com Everything Everywhere grows as users turn to smartphones BY

BY JAMES WATERSON

RESEARCH by a leading M&A adviso-

ry firm suggests that we are

approaching an age where compa-

nies can be worth billions despite

having “near-zero” employees.

Magister Advisers believe that the

success of firms such as photo-shar-

ing service Instagram – sold for $1bn

(£617m) last month despite being less

than two years old and having just

thirteen employees – shows that

firms no longer need to hire staff in

order to build value.

“A new breed of super-efficient

technology companies is already

emerging, capitalising on near-free

distribution channels that enable

entrepreneurs to find significant

markets for their innovations with

minimal capital investment and vir-

tually no headcount,” Magister says

ational risk. The arrival of the $1bn

one-employee business is surely

imminent.”

Contrasting today’s start-ups with

their heavily staffed predecessors, the

report suggests that the modern

Microsoft would not “need 500 or

more employees to manage and

implement sales, marketing and dis-

tribution channels”.

“Microsoft and Apple were both

built on the entrepreneurial genius

of a handful of individuals. The differ-

ence was that they needed to build a

whole infrastructure to grow.”

Magister goes on to suggest that the

value of a company will increasingly

reside in just a few highly-talented

individuals.

“What today’s business models

make clear is the huge amount of

value that resides in individual

employees in successful technology

companies, something that hasn’t

in the report. been visible before,” the firm says. “The opportu- “[Apple] is a business with
in the report.
been visible before,” the firm says.
“The opportu-
“[Apple] is a business with a current
nity to create
market valuation of more that
huge value –
$600bn. If you strip Apple down to its
and create it
innovative core, the value that can be
quickly – has
ascribed to a very few individuals
never
been
could be measured in the billions. If
greater,
with
Apple was starting out today, the
mini-
same core group of innovators could
mal
create billions of value very quickly.”
oper-
Instagram co-founder Kevin
Systrom sold his firm for $1bn
GETTY
GETTY

Mark Zuckerberg is expected to pitch up at the IPO roadshow to present his company

Facebook to launch roadshow for mega-flotation next week

14 NEWS THURSDAY 3 MAY 2012 cityam.com Everything Everywhere grows as users turn to smartphones BY

BY LAUREN DAVIDSON

FACEBOOK could set off on its IPO

roadshow as early as Monday,

paving the way for the biggest

internet flotation ever.

The SEC is set to approve the

offering imminently, meaning the

social network will be able to start

pitching its stock to potential

investors.

Sources have set 18 May as a

likely date for the listing, which

will be on Nasdaq under the ticker

symbol FB.

It is also believed that Mark

Zuckerberg, Facebook’s 27-year-old

founder and chief executive, will

appear at meetings during the

roadshow to present his company.

The Harvard dropout irked Wall

Street when he failed to show up

to analyst meetings in March,

passing the duty to chief operating

officer Sheryl Sandberg and

finance director David Ebersman.

Following months of bubbling

speculation, Facebook filed for its

IPO on 1 February, revealing plans

to raise $5bn.

The eight-year-old website has

since updated its SEC submission

with details of its patent spat with

Yahoo and its $1bn acquisition of

photo-sharing app Instagram.

It is expected that investor

appetite for Facebook shares will

be strong. But the company has

come under fire for its governance

structure, which will see

Zuckerberg control 57 per cent of

the voting share.

The social network will also face

questions about its income. In its

first earnings slide in at least two

years, Facebook’s recent first

quarter profits fell by 12 per cent

from the same period last year.

Mastercard and Visa buoyed by surge in profits

14 NEWS THURSDAY 3 MAY 2012 cityam.com Everything Everywhere grows as users turn to smartphones BY

BY KATIE HOPE

THE WORLD’S largest credit card

firms yesterday reported bumper

profits as consumers put more of

their spending on cards.

Visa, the world’s largest credit

card firm saw profit surge 47 per

cent in the second quarter, while

closest rival Mastercard saw a 21 per

cent rise in profit as spending on

credit and debit cards rose.

Visa, which reported after the

close of trading last night, said net

income in the first quarter was

$1.29bn, or $1.91 a share, compared

with $811m, or $1.23 a share, a year

earlier. Adjusted earnings per share,

which exclude one-time items, were

$1.60, beating analyst expectations.

The firm increased its 2012 profit

forecast, saying it expects annual

earnings-per-share growth in the

“high teens to low twenties,” up

from just the “high teens.”

Meanwhile, Mastercard, the

world’s second-largest credit and

debit card network, reported net

income of $682m, or $5.36 a share,

compared with $562m, or $4.29 a

share, a year earlier. MasterCard net

revenue, adjusted for an

acquisition, grew faster than

expenses, rising 16 per cent while

operating expenses increased nine

per cent. Card payments outside the

United States grew 20.6 per cent,

based on local currencies, compared

with 14 per cent growth in the

United States.

Mastercard, however, warned

such gains were less likely in 2012

because of the strength of the

business in late 2011, and doubts

about consumer confidence.

LME bidder ups income had grown to a record BY ELIZABETH FOURNIER $365m (£225.4m) in the
LME bidder ups income
had grown to a record
BY ELIZABETH FOURNIER
$365m (£225.4m) in the
INTERCONTINENTAL
three months to 31
Exchange (ICE), one of the
March. Net income rose
parties believed to be
15 per cent to $148m.
preparing a bid for the
OTC energy trades
London Metal Exchange,
provided the biggest boost
yesterday reported a nine
to the figures, with
per cent rise in revenues
revenues growing 15 per
for the first quarter
cent from the first
compared to the same
quarter of 2011 to $163m.
period last year.
ICE is vying with HKEx,
ICE, which runs
CME Group and NYSE
clearing houses and
Euronext to buy LME,
exchanges, said revenues
according to sources.

Housing gloom grows as Co-op

pulls interest only mortgages

  • BY PETER EDWARDS

THE CO-OPERATIVE Bank has

become the first major lender to pull

its interest only mortgages.

It said demand for the product

had dropped because of falling

house prices and “uncertainty” over

interest rates. New customers will

only be able to take mortgages on a

capital and repayment basis from

Tuesday.

James Hillon, Co-op Bank head of

mortgages, said buyers are “taking a

long term view to home ownership”.

Other lenders including

Santander and Nationwide have

tightened restrictions on interest

only mortgages this year.

The Co-op’s changes, which do not

affect existing interest only

mortgage customers, also apply to

Britannia and its Platform

intermediary service.

LIVE IN THE SQUARE MILE AND SAY GOODBYE TO COMMUTING
LIVE IN THE SQUARE MILE
AND SAY GOODBYE
TO COMMUTING

Experience exceptional living in the heart of the City of London. The Heron is a collection of luxury apartments with a superior specifi cation, private club, gym and concierge services.

Suites, 1, 2 and 3 bed apartments from £510,000 to £5,250,000. Ready for occupation Spring 2013.

Joint sales agents

Experience exceptional living in the heart of the City of London. The Heron is a collection

A development by The Heron Residences LLP

Marketing Suite

Open seven days a week The Heron Pavilion, Moor Lane, London EC2Y 9BN

0844 544 9030 sales @ theheron.co.uk www.theheron.co.uk

Experience exceptional living in the heart of the City of London. The Heron is a collection

16

NEWS

THURSDAY 3 MAY 2012

cityam.com

BAE hit by AGM job loss protest as sales stutter

16 NEWS THURSDAY 3 MAY 2012 cityam.com BAE hit by AGM job loss protest as sales

BY JOHN DUNNE expected for the group in 2012 in the

current market conditions, modest

BAE SYSTEMS yesterday said its sales

growth was stalling while its direc-

tors faced protests over job cuts at

the company’s annual general meet-

ing.

Shareholders of the FTSE 100 com-

pany were lobbied by hundreds of

protesters angry at plans for more

than 800 job cuts at the company’s

site in Brough, Yorkshire.

A group of workers who hold

shares in BAE grilled the board at the

meeting on the decision to close the

Brough operation which has been

making planes for over a century.

But more than 90 per cent of share-

holders voted in favour of the remu-

neration package for the company’s

board including CEO Ian King. His

deal is worth around £2.4m, includ-

ing a £1.4m bonus made up of cash

and shares.

They also gave his leadership back-

ing despite the company facing

tough trading. In an update yester-

day, the firm admitted that it expect-

ed minimal sales growth in 2012.

“Whilst little sales growth can be

growth in underlying earnings per

share is anticipated,” it said, adding

that its performance hinged on final-

ising a jet deal with Saudi Arabia.

In 2007 Saudi Arabia signed a con-

tract with BAE to buy 72 Typhoon air-

craft, 24 of which have been delivered

to the Royal Saudi Air Force. BAE said

the contract to build the remaining

48 jets in Britain had been signed but

changes to the price were stalling it.

BAE also said it had offloaded its

Safariland security protection gear

business based in California to

Kanders & Company for $114m.

BAE Systems PLC 292.40 304 p 2 May 302 300 298 296 294 292 26 Apr
BAE Systems PLC
292.40
304
p
2 May
302
300
298
296
294
292
26 Apr 27 Apr 30 Apr
1 May
2 May
16 NEWS THURSDAY 3 MAY 2012 cityam.com BAE hit by AGM job loss protest as sales

BAFTA’S PICCADILLY HEADQUARTERS FOR SALE

REX
REX

BAFTA’S landmark headquarters on Piccadilly are to be put up for sale for £76m. Aviva

Investors Property Trust has instructed property consultancy Knight Frank to sell the

81,000 square foot building known as Princes House, which is also home to the Princes

Arcade, the Tramp nightclub, a screening room, casino and three-storey town house.

IN BRIEF

BG and Repsol in Bolivia advance

n British energy company BG Group said yesterday it and Spanish partner Repsol had started production from the first phase of their Margarita gas field in Bolivia, yielding the companies net production of around 17,000 barrels of oil equivalent per day (boepd) each. Gas producer BG said it was working on a second phase that would lift its share of output to around 42,000 boepd by the close of 2014. It has a 37.5 per cent interest in the Caipipendi block, which contains the Margarita gas field, while Repsol’s Bolivian unit also owned 37.5 per cent.

Kewill to be sold to FPF for £89.5m

n Kewill said yesterday it had agreed to be taken private by tech-focused pri- vate equity firm Francisco Partners Funds (FPF) in a deal that values the British software company at £89.5m. Kewill shareholders would get 96 pence per share, a 26 per cent premium to the stock’s close on Tuesday. Kewill, which provides software to freight for- warders, distribution firms and express parcel groups, said its directors would recommend the deal to its sharehold- ers. FPF has $7bn (£4.3bn) of capital.

Premier Gold drops after placing

n Premier Gold yesterday suffered a 14 per cent plunge in its share price after it announced a £350,000 placing. It said the fresh funds will be used to advance exploration work at the cholokkaindy gold project in Kyrgyzstan. The placing was of 70m new ordinary shares at 0.5 pence each with institutional investors the main buyers of the stock.

Friday Friday Friday Friday City Friday & Polo Party City Friday & Polo Party City Friday
Friday
Friday
Friday
Friday
City Friday & Polo Party
City Friday & Polo Party
City Friday & Polo Party
City Friday & Polo Party
City Friday & Polo Party
at MINT
at MINT Polo In The Park
MINT Polo In The Park
Polo In The Park
Polo In The Park
8
8
TH
TH
JUNE 2012
JUNE 2012
THE HURLINGHAM CLUB & P ARK
THE HURLINGHAM CLUB & P
FULHAM, FULHAM, LONDON SW6
JUNE
JUNE 8
8
TH
, , 9 9
TH
&10
&10
TH
2012
2012
This sensational thr
his sensational three day summer event
ent brings you first class
hospitality in a beautiful,
hospitality in a beautiful, central London setting
al London setting , dynamic sports
action and
plenty more entertainment including
including the new Friday
night ‘Veuv
euve Clicquot at Hurlingham’ launc
launch party.
Choose from all da
om all day, fully inclusive hospitality or a half da
e hospitality or a half day with
our ‘Cool Br
ool Britannia’ Afternoon Tea and the
ea and then party the night away
with Veuve e Clicquot at The Hurlingham Club!
Clicquot at
urlingham Club!
Package pr ices for Friday 8th June start at just £185 plus VAT per
person. ‘Ve euve Clicquot at Hurlingham’ par
party tickets start at £50
plus VAT T p per person.
For more details or to book, telephone 0207 936 5284/5282
e details or to book, telephone 0207 936 5284/5282
or email: rac achel@cityevents.uk.com
www.mintpolointhepark.com .mintpolointhepark.com
‘The Best Corporate Day Out’ - as voted by CITY AM
‘T he Best C orporate Da y Out’ - as v oted b y CIT Y AM
Winner of ‘Best Sports Attraction’ - London Lifestyle Awards 2010 & 2011
W inner of ‘Best Spor ts Attracti on’ - London Lifestyle
A w ards
ds 2010 & 2011

cityam.com

THURSDAY 3 MAY 2012

NEWS

17

Sluggish BRIC manufacturing production hits world outlook

Business lending data points to a continued squeeze on credit

investment bank to help small

BY TIM WALLACE

investment bank to help small

   

businesses.”

  • BY TIM WALLACE

Employment fell marginally as a

Russia also reported an

BANK lending to businesses

Meanwhile mortgage approvals

result, ending three months of

improvement in conditions, its

dropped again in March, official

rose in March and consumer

WEAK manufacturing output

growth in headcount.

manufacturing PMI rising from a

data showed yesterday, raising

credit expanded by £419m in the

across the leading emerging

China’s manufacturers suffered

stagnant 50.8 in March to 52.9 in

further criticism that the

month.

markets in April has dented hopes

their sixth consecutive monthly

April, its strongest performance in

government is failing in its stated

However, economists warned

of a healthy global recovery,

deterioration in conditions, with

over a year.

aim to improve credit conditions.

the overall level of lending is weak

studies revealed yesterday.

PMI edging up from 48.3 to 49.3,

However, economists warned

 

Borrowing by firms fell £3.2bn

and underlines the poor state of

Factory activity deteriorated in

still below the “no change” level.

yesterday that last month’s

in the month, the Bank of England

consumer demand.

China and Brazil, Markit’s

The continued decline pushed

improvement in conditions is far

revealed, following drops of

“It is apparent that consumer

purchasing managers’ indices (PMI)

the employment index to a 37-

from certain to last.

£4.2bn in February and £3.6bn in

appetite for taking on new

showed, although more solid

month low, indicating uncertainty

“In the uncertain global

 

January.

borrowing is still limited while

growth was recorded in India and

over the industry’s future.

economic environment, downside

That means bank lending to

there is also an ongoing strong

Russia.

Growth was recorded in India

risks to industrial growth in Russia

firms has fallen 3.5 per cent in the

desire of many consumers to

Weak demand dragged down

with a sturdy reading of 54.9,

still prevail,” warned HSBC

last 12 months, a steeper drop

reduce their debt,” said IHS Global

both output and new orders in

slightly up on March’s 54.7 as new

economist Alexander Morozov.

than in any year since 2010.

Insight’s Howard Archer.

Brazil for the first time this year,

orders accelerated.

Meanwhile South Korea’s

 

Labour MPs said the data proved

Consumer desire to keep a tight

bringing the PMI down from 51.1

However, capacity remains tight

manufacturing PMI also hit a one-

the government’s project Merlin

grip on their finances is clearly the

in March to 49.3 – a small decline,

and the sector is being held back

year high and Turkey’s industry

scheme to boost lending to small

consequence of still serious

slightly below the “no change”

by power cuts which pushed up

grew for the first time since

businesses “counts for nothing,”

concerns over the outlook for the

level of 50.

backlogs sharply.

January.

and called for a “British

economy and jobs.”

FED OFFICIAL CALLS FOR SHADOW BANK RULES Strong building output raises growth hopes Fears for US
FED OFFICIAL CALLS FOR SHADOW BANK RULES
Strong building
output raises
growth hopes
Fears for US as
factory orders
and jobs slow
BY TIM WALLACE
A SLUMP in factory orders and a
smaller than expected rise in
private sector employment
yesterday knocked hopes for a
stronger US economic recovery.
New orders for US factory goods
in March recorded their biggest
BY TIM WALLACE said Barclays Capital analyst Blerina
decline in three years as demand for
Uruci.
transportation equipment and a
INCREASING orders and rising opti-
“By holding out at a decent level in
range of other goods slumped,
mism pushed up activity in the con-
April, the index suggests the positive
Commerce Department figures
struction sector in April, survey data
momentum in activity seen last
showed. Orders for manufactured
showed yesterday, countering fears
quarter has been maintained at the
goods dropped 1.5 per cent after a
that the sector is dragging down the
start of the quarter.”
revised 1.1 per cent rise in February.
economy as a whole.
However, analysts also sounded a
Orders for transportation
Markit’s purchasing managers’
note of caution, warning that auster-
equipment tumbled 12.6 per cent in
index came in at 55.8, slightly down
ity measures meant that the indus-
March on weak orders for civilian
on March’s 21-month high of 56.7,
try may run short of major projects.
aircraft. Orders for motor vehicles
but still indicating solid growth
“The worry is that the sector may
and parts was flat in March after
above the “no change” level of 50.
suffer from a lack of large-scale new
rising one per cent in February.
Civil engineering activity expand-
projects once current undertakings
Meanwhile the ADP employment
ed with an index of 56.5, a very
such as the Olympics are completed,”
survey showed private sector job
slightly slower expansion than the
said Markit’s senior economist Tim
creation ran at 119,000 in April
56.6 in the previous month, while
Moore.
firmly below the 201,000 jobs
the housing component edged up to
Furthermore, as construction only
created in March and lower than
51.3.
represents seven per cent of total
the 170,000 widely expected.
New orders continued to grow
GDP, economists warn this alone will
“This will renew fears of another
strongly at 58.7, though that too rep-
not be enough to guarantee a solid
spring slump in the labour market,”
resents a slowdown from 63 in
recovery overall.
said Capital Economics’ Paul
March.
Ashworth.
Expectations of future business
Construction activity increased again in April
also kept growing rapidly at 66.4,
70
50 = no change
compared with an index of 67.3 a
65
month earlier.
60
Such positive figures have boosted
55
employment levels moderately, the
50
second quarter of jobs growth in
45
construction.
40
“This better than expected PMI
US REGULATORS should take steps to strengthen government
35
reading means the sector started the
oversight of money market funds and short-term bank funding
30
second quarter with activity
25
stronger than its historical average,”
2000
2002
2004
2006
2008
2010
2012
markets so that the "shadow" banking system can be better
policed, said Fed governor Daniel Tarullo yesterday.
New at
&
www.vitabiotics.com
Incompetent bosses add to recession
shows.
denting the UK’s chance of economic
BY TIM WALLACE
The study found 61 per cent of managers
recovery, the CIPD warned.
MILLIONS of managers across Britain lack
believe they meet their staff several times a
“A small increase in capability across this
the necessary leadership and management
month to discuss workloads and objectives,
huge population of people managers would
skills, which is holding back productivity
but just 24 per cent of employees agree.
have a significant impact on people’s
and hitting the economy’s potential,
Similarly 90 per cent of managers claim
engagement, wellbeing and productivity,”
according to an industry study published
to coach their staff when they meet, though
said the CIPD’s Ben Willmott.
FREE SHAKER!
today.
just 40 per cent of employees think the
“However, too many employees are
The UK’s eight million managers
same, while 75 per cent of managers say
promoted into people management roles
with your first Optimuscle ® purchase
frequently have an over-inflated view of
they often discuss employees’ careers,
because they have good technical skills,
from www.vitabiotics.com*
their own abilities and of their success, the
compared with just 38 per cent of staff.
then receive inadequate training and have
Chartered Institute for Personnel and
This “reality gap” is undermining
little idea of how their behaviour impacts
*While stocks last.
Terms & conditions apply.
Development’s (CIPD) employee outlook
productivity, hitting workforce morale and
on others.”
Source: Markit
GETTY
THURSDAY 3 MAY 2012 cityam.com 18 NEWS US corporate results round up Playtech heads to main
THURSDAY 3 MAY 2012
cityam.com
18
NEWS
US corporate results round up
Playtech heads
to main market
BY CITY A.M REPORTER
Time Warner revenue up
Comcast beats Street
American Eagle ups view
CVS raises outlook
GAMING software group Playtech
TIME Warner said yesterday
COMCAST yesterday posted a
AMERICAN Eagle Outfitters
CVS CAREMARK raised its
said yesterday its first quarter
its revenue rose four per cent
better-than-expected
yesterday sharply raised its
full-year forecast yesterday
revenues had doubled, helped by
from a year ago, but
quarterly profit on continued
profit estimate for the latest
after reporting a sharp rise in
strong growth at its casino
impairment charges
growth in high-speed
quarter as it sold more spring
first-quarter sales as the
businesses, and that plans to shift
including one from the
internet subscribers, a strong
clothes at full price.
drugstore operator and
its listing to London’s main market
troubled HBO series Luck
performance at its movie
The teen clothing retailer
pharmacy benefits manager
were progressing well.
kept the media company
studio, and signs of a
now expects to report a
continued to win over former
But the group added that it was
from recording a higher
turnaround at its NBC
profit of between 18 cents
patrons of Walgreen stores.
dropping plans to buy some social
profit in the first quarter.
broadcast business.
and 20 cents a share. It
CVS said sales rose 19.9 per
gaming assets owned by founder
First-quarter revenue from
First-quarter net income
previously had forecast eight
cent to $30.8bn (£19bn) in the
and Israeli billionaire Teddy Sagi,
the company’s TV and cable
was $1.22bn (£740m), or 45
cents to 10 cents.
quarter, helped by an 8.4 per
and would instead enter software
networks, which include
cents a share, up from
Sales at stores open at
cent increase in sales at
license agreements. Plans for a deal
TNT, CNN and HBO, rose
$943m, or 34 cents a
least a year rose 17 per
drugstores open at least
with its top shareholder – Sagi
three per cent to
share, a year earlier.
cent in the first
a year and more
owns 48 per cent of Playtech – were
$2.6bn (£1.6bn).
Revenue rose 9.6
quarter, which
business from
announced in April.
Net income
per cent to
concluded at the
Medicare
Total revenues came in at €75.1m
was $581m.
$14.88bn.
end of April.
recipients.
(£61.2m), up from €36.7m a year
ago.

TNT says UPS deal still on track

THURSDAY 3 MAY 2012 cityam.com 18 NEWS US corporate results round up Playtech heads to main

BY HARRY BANKS

DUTCH parcel delivery company

TNT Express said yesterday its

acquisition by US group United

Parcel Service (UPS) was on

schedule, as it reported a return

to a first-quarter operating

profit.

TNT Express said it had first-

quarter operating income of

37m (£30m), compared with a

79m loss in the 2011 period.

Revenue rose 1.3 per cent to

1.82bn. In March, TNT Express

accepted an offer to be acquired

by UPS, the global mail service

leader, for 5.2bn.

TNT Express said yesterday it

had “experienced mixed

economic conditions in Europe

and slowing Asia-Europe trading

volumes,” without saying how

those developments would affect

its results.

UPS was due to present details

of the offer for TNT Express to

Dutch authorities by 19 May.

TNT said that a programme of

“indirect cost savings” that it

began in May last year were on

track to be completed this year,

and that its spending and

working capital targets were in

line with its medium-term aims.

“As announced at the

beginning of the year, the first

quarter of 2012 has been

challenging, given the ongoing

sluggish business environment,”

said chief executive Marie-

Christine Lombard.

But, she added: “Profitability in

Asia-Pacific improved, despite

weak intercontinental demand.

Americas also improved, with

better results in Brazil.”

Spirent looks to growth in Asia as it trades above expectations

THURSDAY 3 MAY 2012 cityam.com 18 NEWS US corporate results round up Playtech heads to main

BY CITY A.M. REPORTER

TELECOM testing company Spirent

Communications posted a 17 per

cent rise in quarterly pre-tax profit

yesterday as demand for testing

wireless, data centre, high speed

Ethernet and global positioning

systems continued to be strong in

Asia and the US.

Spirent, which counts Cisco

Systems, Alcatel Lucent and

Verizon Communications as its

customers, said trading in the first

quarter was ahead of expectations

and China, Japan and India were all

key growth regions.

Pre-tax profit for the quarter

ended 1 April rose to $27.5m

(£16.9m) from $23.6m a year ago.

Revenue rose five per cent to

$129.4m. Revenue from its largest

performance analysis business

grew 16 per cent to $107.3m. Sales

in the company’s other two

segments – service assurance and

systems – fell about 35 per cent and

17 per cent respectively.

THURSDAY 3 MAY 2012 cityam.com 18 NEWS US corporate results round up Playtech heads to main

cityam.com

THURSDAY 3 MAY 2012

19

THECAPITALISTcityam.com/the-capitalist

Got A Story? Email thecapitalist@cityam.com

cityam.com THURSDAY 3 MAY 2012 19 THE CAPITALIST cityam.com/the-capitalist Got A Story? Email thecapitalist@cityam.com HOT AIR

HOT AIR PROPELS CITY’S LUNCHTIME PURSUITS

cityam.com THURSDAY 3 MAY 2012 19 THE CAPITALIST cityam.com/the-capitalist Got A Story? Email thecapitalist@cityam.com HOT AIR

BORIS Johnson has avoided making

any major gaffes during this mayoral

election but The Capitalist has

unearthed his 1988 guide on how to

win election to the Oxford Union stu-

dent debating society – and it makes

for illuminating reading.

In the document Johnson explains

that an aspiring candidate must have

“a disciplined and deluded collection

of stooges” who are willing to do

their dirty work.

“Your enemies will seize on any

indiscretions and publicise them

ferociously. They may even have a

special think-tank to compose plausi-

ble rumours about you,” the future

mayor explains in what could be a

Young Boris’ guide to electioneering

motivate

the

apathetic

voter,

he

stuck to ever since.

explains that though “Establishment

folk have an English middle-class dis-

taste for political conversation” when

polling day approaches “the

Establishment votes with a surprising

and unthinking loyalty”.

Despite highlighting the Union’s

vicious election process and inherent

right-wing bias Johnson pays tribute

to the fact that the organisation con-

tinues to invite “national and interna-

tional left-wing figures” such as one

reference to this year’s focus on Ken

Would-be candidates are also

“Ken Livingstone”.

Livingstone’s tax bill.

advised to target “leftish” Tories who

Unfortunately what the undergrad-

“Smears must be pitched at exactly

“feel basically Conservative but do

uate Johnson thought of his future

the right audience,” he adds.

not want to appear uncaring”, a tac-

mayoral opponent is not recorded for

Already eyeing up the ability to

tic that the mayor appears to have

posterity.

Made in Chelsea: producer launches charity film

TONIGHT a heady mix of film

talent, celebrities and investors will

fill The Scotch, the hippest new

hangout in Mayfair, for the second

sponsorship launch party of The

One Square Mile film project and

charity.

is a multi-layered storyline

featuring all walks of life.

But if the story is about the lack

of community, the project is all

about building it. Butler has

linked up with STORM, a charity

that helps women get out of

domestic abuse situations, and

School of Hard Knocks, which gets

underprivileged people playing

rugby, and plans to use Battersea

locals as extras and crew.

Rather than wait for a production company to sign on, producer and writer GLOBAL BUSINESSES Leon
Rather than wait for a
production company to sign
on, producer and writer
GLOBAL BUSINESSES
Leon Butler has decided to
go it alone by raising money
RECRUITING LONDON’S
for the project via a 17-
person committee of movers
and shakers from the City
BEST PROFESSIONALS
and the entertainment
world.
As for the film itself? It’s
CITY workers fly high above Exchange Square in the specially designed “Broadgate
Balloon”, which will be resident in the Moorgate hotspot for anyone seeking a
lunchtime thrill – or birds-eye view into their colleagues’ offices. Fifty people every
day can win a ride in the balloon, which will be on site until 11 May.
all about London community
– described as Adulthood
meets Crash, it will be filmed
in Battersea and Chelsea and
CITYAMCAREERS.com
THE PRINT COMPANY
THAT NEVER SLEEPS
The Color Company are here when you really need us. We are
The Color Company ar e her e when you r
e when you r eally need us. We ar
e ar e
OR SCAN HERE
London’s leading digital print company with locations throughout
London’s leading digital print company with locations throughout
London’s leading digital print company with locations thr oughout
central London with the added advantage of a 24/7 branch in the
central London with the added advantage of a 24/7 branch in the
central London with the added advantage of a 24/7 branch in the
central London with the added advantage of a 24/7 branch in the
OVER
heart of Mayfair.
hear t of Mayfair.
SALARIES UP TO
Our range of services include onsite and offsite print rooms, bid
Our range of ser vices include onsite and of
vices include onsite and of fsite print rooms, bid
ooms, bid
3000 JOBS £300K
production, presentations, large format and exhibition graphics,
production, pr esentations, lar
esentations, lar ge format and exhibition graphics,
mat and exhibition graphics,
all produced throughout the day and night.
all produced throughout the day and night.
oughout the day and night.
Drop in
Drop
op
op
in
in
in when
when
when
when
you
you
you
you
need us,
need us,
need us,
need
us, even
even
even
even
if if
if
if
it
it
it it
is
is
is
is
3am
3am
3am
3am
and you
and you
and you
and you
need
need
need
need
something printed and dispatched to New Y
something printed and dispatched to New York for next day*
ched to New York for next day*
FINANCE, LEGAL & I.T
CALL US TO DISCUSS 0800 93 94 93
CALL US TO DISCUSS 0800 93 94 93
CALL US TO DISCUSS
JOIN THE DEBATE
or FIND YOUR NEAREST STORE on www.color.co.uk
or FIND YOUR NEAREST STORE
FIND YOUR NEAREST STORE on www.color.co.uk
SEE PAGES
22-23
*Authorised Fedex ShipCentre provided is
*Authorised Fedex ShipCentre provided is
ovided is
WWW.CITYAMCAREERS.COM
subject to standard terms and conditions
subject to standard terms and conditions
ms and conditions
cityam.com/forum

20

THURSDAY 3 MAY 2012

cityam.com

CITY DASHBOARD

20 THURSDAY 3 MAY 2012 cityam.com DASHBOARD YOUR ONE-STOP SHOP FOR JOB MOVES, BROKER VIEWS AND

YOUR ONE-STOP SHOP FOR JOB MOVES, BROKER VIEWS AND MARKET REPORTS

CITY MOVES

WHO’S SWITCHING JOBS Edited by Tom Welsh

in association with

in association with
in association with
 

NEW YORK REPORT

Deloitte

Deloitte head of client portfolio management EMEA, in its global Cauldron Consulting Poor jobs data

head of client portfolio management EMEA, in its global

Cauldron Consulting

Poor jobs data

Kit Dickson has been appointed partner in Deloitte’s information reporting and withholding taxes group, part of its financial services practice. He joins from

fixed income team. He will report to Bob Michele, chief investment officer, global fixed income, currency and commodities. McKenzie was previously head of fixed income EMEA at Aberdeen Asset Management and was head of UK fixed income at Deustche Asset Management.

David Acfield has joined Cauldron Consulting, the financial services media relations firm, as chairman. Acfield is a former joint chief executive of Rensburg Fund Management, former sales director of the Save & Prosper Group, and a Commonwealth gold medallist.

drags on stocks

KPMG’s investment management practice, where he worked with

Barclays

Aon Hewitt

T HE S&P 500 and the Dow edged

lower yesterday as data showed

that private sector hiring

unexpectedly fell to a seven-

institutional investor clients. He

The wealth and investment management division of

The human resources business of Aon Corporation has

 

also previously led KPMG’s EU

Barclays has announced the appointment of Edward Kirwan

law group.

as director, UK charities investment management. He joins

appointed Zoe Patrick as client relationship manager in its

month low in April, sparking

 

Barclays after twelve years at Coutts, where he was

flexible benefits division. She joins from Thomson Online

concerns that Friday’s key jobs report

Reyl Overseas

responsible for establishing and managing the charity

Benefits, where she was principal account manager. She has

will also disappoint investors

The new subsidiary of Reyl & Cie, the Swiss bank, has

investment team.

also worked for Logica and Northgate Arinso.

The Dow Jones industrial average

dropped 10.75 points, or 0.08 per

appointed Roger Groebli as chief executive. Groebli joins

Barings Asset Management

SJ Berwin

cent, to 13,268.57. The Standard &

from ABN Amro, where he divided his time between

The international law firm has announced that Simon

 

Poor’s 500 Index fell 3.52 points, or

heading up its Asia-Pacific research unit and the bank’s

Sean Chang has been appointed head of Asian debt at the

0.25 per cent, to 1,402.30. The Nasdaq

investment advisory activities.

investment management firm. He will report to Alan Wilde,

Holmes has become head of its EU, competition and