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Greek stocks dropped 4.

56 per cent
4.30pm 8.00am
580
590
600
610
584.04
14May
BUSINESS WITH PERSONALITY
JP MORGAN cleared out the entire
senior team in its chief investment
office (CIO) last night after Ina Drew,
one of Wall Streets most powerful
women, quit the bank over $2bn
(1.24bn) in hedging losses.
According to an internal memo
seen by City A.M., Achilles Macris, who
led the trading desk that placed the
banks disastrous hedges, will transi-
tion his CIO responsibilities mean-
ing he will be effectively removed
from day-to-day responsibilities,
although it is not clear if he will
immediately quit the bank.
And three new executives will join
the CIO, including Rob ORahilly as
head of CIO in Europe, the Middle
East and Africa.
The news came after Ina Drew, who
was chief investment officer, quit over
the losses and was replaced by Matt
Zames, known as the banks Mr Fix-
It after taking on JP Morgans US
mortgages portfolio post-2008.
Zames sent the memo last night, in
which he also tried to rally staff: I am
proud of the firms efforts over the
past several days to address our mis-
takes and pleased to join the dedicat-
ed employees in our CIO today, he
wrote, promising a sharp, renewed
focus on our hedging strategies, risk
management and execution.
He added: JPMorgan Chase will
come out of this experience as a
stronger firm.
JP Morgans chief investment officer Ina Drew tried to resign repeatedly over the huge trading losses MARKETS plummeted across Europe
yesterday as fears mounted that
Greece may leave the Eurozone, driv-
ing a mass sell-off as investors fled
risky assets.
Shares dropped sharply, while
peripheral governments saw borrow-
ing costs jump. European leaders open-
ly acknowledged the prospect of the
country leaving the euro, while
Greeces political leaders failed even to
meet last night to continue negotia-
tions over forming a government.
German finance minister Wolfgang
Schauble said the Eurozone is ready
for every eventuality, while an EC
spokeswoman said We hope Greece
will remain in the euro but it must
respect its commitments.
Greek stocks led the rout, plummet-
ing 4.56 per cent to a fresh 20-year low.
Worries over Spanish banks also hit
markets, as the countrys top five
lenders announced plans to set aside
an extra 15bn (11.97bn) in provisions
to cover risky property deals, heaping
pressure on their finances as the coun-
try battles to restore confidence in the
industry. Italy was also in the spot-
light, after rating agency Moodys
www.cityam.com FREE
downgraded the long-term debt rating
of 26 of the countrys banks, including
Unicredit and Intesa Sanpaolo.
As concerns escalated, Spains IBEX
fell 2.66 per cent, Italys FTSE MIB slid
2.74 per cent, Frances CAC declined
2.29 per cent and the German DAX fell
1.94 per cent. The FTSE 100 also joined
the collapse, falling 1.97 per cent.
The euro fell 0.55 per cent against
the dollar to $1.28, and 0.8 per cent
against the pound to 79.81p.
The sell-off also hit peripheral govern-
ments bonds, while the UK and
Germany benefited from their safe
haven status, attracting investors and
pushing down borrowing costs further.
Credit default swaps (CDS) on key
European governments leapt, under-
lining fears over the region, with
Spains five-year CDS at a record high of
540 basis points, according to Markit.
Meanwhile industrial production in
the Eurozone continued to fall in
March, official data showed yesterday,
demonstrating the impact of ongoing
market chaos on the real economy.
Eurostats data showed output fell
2.2 per cent in the year to March for
the area as a whole. Production fell 8.5
per cent in Greece, 7.5 per cent in
Spain and 5.8 per cent in Italy. Less
high-profile countries also suffered
industrial production dropped 11.3 per
cent in Luxembourg and 6.1 per cent
in both Estonia and Finland.
FTSE 100 M5,465.52 -110.00 DOW M12,695.35 -125.25 NASDAQM2,902.58 -31.24 /$ 1.61 unc / 1.25 +0.01 /$ M1.28 -0.02
THE APPLE
TV DREAM
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Certified Distribution
02/04/2012 till 29/04/2012 is 100,668
BY JULIET SAMUEL
BY TIM WALLACE
The FTSE fell 1.97p er cent
4.30pm 8.00am
5450
5500
5550
5600
5,465.52
14May
EURO FEARS
SPARK ROUT
IN MARKETS
Queen of Wall Street quits as
JP Morgan clears the decks
ALL YOU NEED IS CASH
ISSUE 1,632 TUESDAY 15 MAY 2012
SHOULD FOOTBALL TEAMS BE ALLOWED TO BUY SUCCESS?
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
IN BRIEF
Rush to safety as worried
investors flee periphery
BORROWING costs jumped again
yesterday in peripheral Eurozone
as fears grew that Greece is on its
way out of the currency union.
Investors piled cash into safe
haven countries, driving down
borrowing costs in the UK and
Germany and fleeing riskier assets.
German backing for bailouts and
austerity took a beating as Angela
Merkels CDU party lost a major
regional election over the week-
end, while Greek politicians again
failed to agree on a new govern-
ment, hitting confidence across
the continent.
Italys 10-year borrowing costs
rose 18.8 basis points (bp) to 5.697
per cent yesterday, while Spains
jumped 22bp to 6.227 per cent and
Greeces increased by 283.2bp to
27.584 per cent.
Meanwhile the UK saw 10-year
gilt yields drop to a record low of
1.861 per cent, before rising to
1.877 per cent by the end of the
day.
German yields fell 5.9bp over the
day to 1.457 per cent, and 10-year
US Treasury yields dropped 5.3bp
to 1.78 per cent.
Stocks also fell hard over the day
as investors sought safer locations
for their cash.
Event risk and political uncer-
GM unveils Europe restructuring
plan
The head of General Motors Europe arm
told anxious German workers on Monday
that he would have to restructure
production of a key model in order to help
return the European operation to
profitability.
Paul Smith plans fresh move into
China
British fashion brand Paul Smith plans to
open a 5,000 sq ft flagship store in
Shanghai as part of its second attempt to
crack the Chinese market, five years after
losses forced it to retreat from the
country.
LightSquared files for bankruptcy
protection
LightSquared, the satellite venture of
Philip Falcone, has filed for bankruptcy
protection after the billionaire investor
was unable to reach agreement with
creditors. The company faced a 5pm
deadline yesterday before a covenant
waiver agreed by holders of
LightSquareds $1.6bn of debt expired.
Recovery expert charges 6,000 a day
to axe jobs
Turnaround expert Donald Muir stands to
earn 470,000 for six months part-time
work while the accountancy firm he was
brought in to save cuts a tenth of its
workforce, it has emerged. Muir was
parachuted in to help RSM Tenon.
New lease of life for bank
The 105-year-old banking name of Singer &
Friedlander has returned to the City after it
was bought out of administration by a group
of former staff.
Sir John Peace calls on cavalry to halt
bonus cap
Sir John Peace, chairman of Standard
Chartered, has called on the political
cavalry to lead the charge against
European plans for a bonus cap that could
cripple Britain's financial services industry.
Banks changes to SME loans
unlawful
Banks are unlawfully changing loan
terms and refusing to negotiate with small
businesses, a law firm has claimed.
Cash crisis hits aerospace
A Spanish manufacturer of critical aircraft
components for major aircraft makers
including Airbus, Boeing and Embraer is
slowing production and struggling to pay
its bills. Alestis Aerospace is facing a cash
crunch because of Spains banking crisis.
Activision reaches into its game
vault to rev up revenue
Activision Blizzard, the worlds biggest
videogame maker, is banking its future on
games that go back more than a decade.
WHAT THE OTHER PAPERS SAY THIS MORNING
CREDIT rating agency Moodys last
night downgraded its long-term debt
and deposit ratings on 26 Italian
financial institutions, blaming the
countrys return to recession and
limited funding opportunities.
Unicredit and Intesa Sanpaolo,
which together account for almost a
third of Italys banking market by
assets, were among those hit by the
downgrades, three months after
Moodys put more than 100 banks
across the Eurozone on negative
review due to their exposure to the
regions economic crisis.
The ratings for Italian banks are
now amongst the lowest within
advanced European countries,
reflecting these banks susceptibility
to the adverse operating
environments in Italy and Europe,
Moodys said in a statement.
The downgrades are expected to
herald the start of a fresh round of
rating reassessments, with Spains
struggling financial institutions
seen as the most likely candidates to
be hit next.
Unicredits standalone credit
rating was lowered by one notch to
A3, while Intesa Sanpaolos was
downgraded from A3 to A2.
Moodys said that in most cases,
the downgrades were not based on
changes to its assumptions about
support available from third-parties,
including the Italian government.
Moodys cuts
the ratings of
26 Italian banks
2
NEWS
BY ELIZABETH FOURNIER
BY TIM WALLACE
To contact the newsdesk email news@cityam.com
I
T has long been a theme of this
column that the government and
its critics alike have exaggerated
the extent of the governments
belt-tightening. The coalition is doing
this to try and reassure the bond
markets while seeking to minimise
the hit to the public sector; the
opposition because it wants to blame
the recession on the cuts. But there
are two kinds of austerity:
governments can either hike taxes or
cut spending. Britain is definitely
getting plenty of the first kind but it
is getting far less and far too little of
the second kind than is usually
understood.
Millions of people are suffering but
that is because they, rather than the
state, are being forced to tighten their
belts they are being hit by higher
Vat, national insurance, capital gains
tax, transport taxes, pasty taxes and
EDITORS
LETTER
ALLISTER HEATH
Its austerity all right but not of the kind we actually need
TUESDAY 15 MAY 2012
the like. On top of that, inflation is
gobbling up pay rises and slowly but
surely eroding the purchasing power
of whatever is left in workers pockets
once the state has grabbed its share.
Even a cursory analysis of the
Treasurys Budget projections reveals
that state spending is still going up in
cash terms. After adjusting for infla-
tion, it is only falling slightly. The
problem is that some areas of the
public sector are suffering heavily
libraries, for example, or infrastruc-
ture projects while the government
is still spending more and more in
other areas, and not only on debt
interest and unemployment benefits.
So why all the misleading rhetoric?
As an excellent report from Tullett
Prebon points out, the UK has been
trying to placate (or as it bluntly puts
it dupe) the bond markets by com-
bining maximum spin with mini-
mum substance. The reports author,
Tim Morgan, goes as far as to describe
what passes for the debate on public
spending in the UK as a Big Lie,
phoney austerity, a bare-faced
deception, mendacious and much
else besides. It is good to see an econ-
omist at a City firm actually telling it
how it is, rather than buying the
mainstream, wishy-washy consensus;
in fact, I cannot recall ever reading a
piece of research from the City that
contained so many insults. Great fun
161bn (at 2010-11 values) in 2009-10
to 123bn in 2011-12. But the infla-
tion-adjusted deficit remains higher
than it was in 2008-09 (100bn), the
year before the Labour governments
pre-election spending spree. Of the
38bn deficit reduction achieved
since 2009-10, three-quarters has
resulted from higher taxes and only
one quarter (8bn) from spending
cuts. Again using constant (2010-11)
values, taxes have increased by 30bn
since 2009-10, absorbing three quar-
ters of the entire increase in GDP of
40bn over that period. Astonishingly,
therefore, the private sector has kept
just one quarter of the already tiny
increase in GDP of the past three
years. Its austerity all right but of
the wrong kind.
but also deadly serious.
Morgans statistics are illuminating.
In 2009-10, a combination of automat-
ic stabiliser costs and a pre-election
spree sent spending rocketing by 4.6
per cent in real terms, equivalent to
an extra 31bn. During the coalition
governments first year in office
(2010-11), spending increased again,
albeit by just 2.4bn. Public spending
finally fell in 2011-12, but only by
10.3bn, or 1.5 per cent. Total spend-
ing in 2011-12 was 7.9bn (1.1 per cent)
lower than in 2009-10 but 22.6bn (3.4
per cent) higher than in 2008-09. At
best, the supposedly huge cuts in
spending delivered by the coalition
amount to only a little more than 1
in every 100. Any well-run household
or company would be able to cope;
why cant the British state?
The figures make grim reading. The
deficit has been reduced, from
tainty in Eurozone appear too high
to be ignored, said JP Morgan.
Buying the dips might be tempt-
ing, but in the event of a country
leaving Eurozone, markets would
care about only one question: who is
next?
Even traditional safe haven gold
fell another 1.58 per cent to $1563.5.
Analysts blamed the increasingly
strong US dollar, as the market is
priced in the currency, hitting
demand from other countries.
The continued pressure on govern-
ments debts means leaders are
showing few signs of backing down
over austerity measures.
Spanish leader Mariano Rajoy yes-
terday restated his belief that spend-
ing cuts and tax rises are needed to
reduce the countrys debts, which
his economic reforms will help
restore growth in the medium term.
However, new French president
Francois Hollande takes office today
and will meet German chancellor
Merkel. The two are expected to seek
common ground after Hollandes
previous rejection of Merkels plans
for fiscal discipline for the Eurozone.
Investors ocked to safe German debt
Mar Apr May
2.1%
2.0%
1.9%
1.8%
1.7%
1.6%
1.5%
1.4%
1.457%
THE FORUM: Page 23

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CITYAMCAREERS.com
Q
Wouldnt this be a
disaster for Greece?
A
The countrys
GDP would take
a big hit; UBS
estimates that up to 50 per cent
could be lost. Yet a currency
devaluation may help the recovery,
and debts could be written off.
Q
How would it actually work?
A
The Greek government would
legally establish a new currency.
Authorities may introduce strict
currency controls and management
of the banking system, to prevent a
run on the banks.
Q
Surely there would be problems though...
A
Undoubtedly. Disputes over deals
made in euros would drag on and
on. Legal battles would keep lawyers
busy for years, said Deloitte
economist Ian Stewart.
Q
And what about the Eurozone?
A
Its unclear how damaging a
Greek exit would be. Some
economists fear the risk of contagion
could be huge to the single currency.
Q
Has anything happened before?
A
Yes, Argentina defaulted and
brought in a new currency. A
change also happened when
Czechoslovakia broke up.
Q
A
and
What next if Greece
leaves the euro?
Spanish borrowing costs jumped again
Mar Apr May
6.5%
6.0%
5.5%
5.0%
6.227%
Yields on 10-year Italian debt shot up
Mar Apr May
5.8%
5.4%
5.6%
5.2%
5.0%
5.697%
The UKs 10-year yields fell to record lows
Mar Apr May
2.5%
2.4%
2.3%
2.2%
2.1%
2.0%
1.9%
1.8%
1.877%
Borrowing costs rose in peripheral Eurozone countries and dropped for safe havens
G
E
T
T
Y
SPAINS banks are expected to kick off
a new round of mergers following the
governments demand that they put
aside billions more to provide for loss-
es on property lending.
As banks shares across Europe tum-
bled three to nine per cent (see below),
the Bank of Spain revealed that
Spanish lenders use of its emergency
borrowing facility jumped by 16 per
cent last month to 317bn (253bn).
The banks heavy dependence on
public finding makes the need to cut
down their balance sheets more
urgent, meaning they will have to
take heavy losses on billions of proper-
ty assets that they have been holding
in the hope that values will rise.
The governments move on Friday
is meant to force banks to tackle a
huge overhang of dodgy loans made
during the housing bubble. BBVA said
the new rules will force it to put
1.8bn aside for losses, compared to
Santanders extra provision of 2.7bn.
BY JULIET SAMUEL But ratings agency Fitch said that
large banks like Santander and BBVA
are not as badly hit as small and mid-
sized lenders because the new provi-
sions are only 20-43 per cent of their
profits versus nearly three times their
operating profit for smaller banks.
Therefore, Fitch says: The govern-
ment has incentivised banks to
merge. Lenders have just under a
month to present plans for how they
will find the money, which could
prompt a frantic round of deal talks.
The preparations will be doubly dif-
ficult because not only will they need
to cover a higher proportion of the
losses with capital that is on standby,
but their estimate of the losses will
have to become more realistic. Rather
than expecting a 25 per cent write-
down, they might have to factor in a
loss of more than 60 per cent on many
of property assets, according to Fitch.
Estimates for the size of the total
capital hole in Spanish banks balance
sheets range from the governments
30bn to UBSs 150bn.
Greek leaders reject presidents
call for new technocratic regime
GREEK leaders again failed to form
a government last night, as radical
left wing party Syriza rejected the
presidents plan to install a new
technocratic prime minister.
Conservative leader Antonis
Samaras accused Syriza leader
Alexis Tsipras of being arrogant
in refusing to join a coalition with
the pro-bailout parties.
Meanwhile Evangelos Venizelos,
former finance minister and leader
of PASOK, said he was not
optimistic a coalition could be
BY TIM WALLACE
formed, meaning new elections are
likely to be held next month.
The technocratic approach has
been tried before unelected
former central banker Lucas
Papademos became prime
minister late last year, backed by
MPs to negotiate the governments
bail out.
As politicians have failed to
form a government after the
election nine days ago, President
Karolos Papoulias suggested
repeating the process.
However Syriza objected, with a
spokesman explaining: We dont
want to consent to any kind of
bailout policies even if they are
implemented by non-political
personalities.
The fact that its going to be
implemented by non-political
people doesnt change the purpose
of this (proposed) government,
which is to implement the bailout.
If an anti-bailout government is
formed, it could mean the country
leaving the Eurozone German
chancellor Angela Merkel yesterday
said support for Greece would
continue only as long as it kept to
its agreements on spending. PASOKs Evangelos Venizelos (right) left negotiations last night without forming a government
TUESDAY 15 MAY 2012
3
NEWS
cityam.com
Deutsche
Bank
-4.1%
Socit
Gnrale
4.2%
Lloyds
-5.5%
RBS
-4.8%
Bankia
-8.7%
Santander
-3%
BBVA
-3.7%
Commerz
bank
-2.7%
Credit
Agricole
-5.5%
Bank shares tumbled across Europe yesterday
Funding gap to
prompt Spanish
bank mergers
G
E
T
T
Y
BANKS are urging the EU to avoid
imposing its own version of the USs
new Volcker rule despite claims from
some quarters that it would have pre-
vented JP Morgans recent $2bn trad-
ing loss.
In a confidential lobbying paper
seen by City A.M., Europes banks
argue that an EU version of Volcker
would be detrimental to the aim of
GDP growth and say it would have a
negative effect on banks ability to
serve the real economy.
The paper has been drafted collec-
tively by Europes biggest banks for
submission to a special Brussels task-
force called the Liikanen
Commission, which is examining
whether to force structural reform on
the sector along the lines of the
Volcker rule or the UKs Vickers
Commission.
The Volcker rule, which is being
introduced by the US, bans lenders
from making bets with excess deposits
for profit (known as proprietary or
prop trading), restricting them only to
hedging their risk. JP Morgan has
come under fire for blurring the line
Banks urge EU
to avoid a copy
of Volcker rule
between the two and losing $2bn
$800m post-tax in the process.
But banks argue that Volcker is dif-
ficult to implement precisely because
of the inability to distinguish between
hedging and prop trading. This can
lead to possible avoidance but also
excessive discretion by supervisors to
define scope, the paper says. The fear
is that if the EU does adopt its own ver-
sion of Volcker, it could accompany it
with highly intrusive regulators.
Banks also say that Volcker will
cause liquidity to dry up in some vital
markets and does not really address
the moral hazard issue related to gov-
ernment guarantees. Instead, they
say regulators should focus on living
wills plans for how to wind up big,
unwieldy banks that fail without a
taxpayer bailout.
More broadly, lenders are anxious to
persuade Brussels that any structural
reform is unnecessary and cannot
help harming the effective function-
ing of the European financial sector
and hence the European economy.
But the banks dont rate their
chances of success very highly. It is
understood that they are also dis-
cussing a plan B lobbying strategy
should their arguments fail.
Fans of the US Volcker rule claim it would stop losses like those at Jamie Dimons JP Morgan
Facebooks founder
Mark Zuckerberg
BONUSES for bankers in the
European Union must not top basic
salaries, a panel of EU lawmakers
agreed yesterday, putting pressure
on member states to back some of
the worlds toughest curbs on high
pay packages.
The European Parliament's
economic affairs committee
approved the bonus cap as part of a
draft law intended to force banks
European Union approves new
rule to limit bonus packages
BY CITY A.M. REPORTER to hold more capital so they can
withstand shocks better without
needing taxpayer help again.
A slew of major banks have
already faced investor backlashes
against high pay for retail and
investment bankers.
The committee also backed
gender quotas for boards of banks.
The draft law turns the Basel III
global accord on bank capital into
EU law, but will need approval from
member states to become effective.
EXCLUSIVE
BY JULIET SAMUEL
TUESDAY 15 MAY 2012
4
NEWS
cityam.com
Facebook to close books early
as demand for IPO skyrockets
FACEBOOK will close the books on
its mammoth $10.6bn (6.58bn)
initial public offering (IPO) today,
according to a source familiar with
the deal.
The social network is scheduled
on Thursday to price its shares,
which begin trading on Friday. It
has stopped taking orders for the
IPO two days ahead of schedule.
The IPO is already
oversubscribed, which is why the
social network is likely to close its
BY CITY A.M. REPORTER books earlier than expected.
No decision has been made
about raising the proposed
offer price for Facebook
shares, which are being
offered at $28 to $35 each,
said the source, who asked
not to be identified because
discussions with the company
are private.
If the price range is
increased, it will
likely be done after final orders
come today. Given the size of the
IPO, the deals underwriters are
likely to be very cautious about
raising the price range, the
source said.
A host of Wall Street banks
are underwriting Facebooks
offering, with Morgan Stanley,
JPMorgan and Goldman
Sachs serving as leads.
Facebook will trade
on the Nasdaq
under the symbol
FB.
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THE SHAREHOLDER spring yesterday
hit another leading firm as media
group UBM announced it had
narrowly avoided defeat on its
executive pay deal.
More than 47 per cent of investors
failed to back the directors
remuneration report, a result that
would have been considered
extraordinary before a recent spate
of shareholder rebellions against pay
levels at underperforming firms.
Protests focused on the substantial
share option given to UBMs finance
director Robert Gray and a change in
rules that meant performance-
related bonuses would no longer
take retail price inflation into
account possibly making it easier
for executives to hit targets.
A spokesman for the firm said:
The Board has a continuing
commitment to a process of active
engagement with Shareholders and
takes careful note of the lower
percentage majority in favour of the
Remuneration report.
UBMs executive remuneration
policy is designed to reward and
incentivise its senior management
appropriately for an increasingly
successful, growing and global
company.
Insurer Aviva, car dealer
Pendragon and media group Trinity
Mirror have all seen investors fail to
back pay deals in recent weeks.
Shareholder
spring targets
UBM board pay
BY JAMES WATERSON
GROUPON, the online company that
offers discounts deals on everything
from holidays to paintballing and
teeth whitening, posted its first quar-
terly profit yesterday as marketing
costs dropped and customer demand
increased.
Excluding one-off costs, it earned
$16.3m (10.1m), or two cents a share,
while revenue soared 89 per cent to
$559.3m from $295.5m a year earlier.
Including costs, the daily deals web-
site still made a loss of $11.7m in the
three months to 31 March, but this
was compared to a much wider loss of
$146.5m, a year before.
Overall growth was boosted by a par-
ticularly strong quarter in its home
market North America, where rev-
enues grew by 75 per cent to $238.6m.
Groupon now has 36.9m active cus-
tomers up 140 per cent on a year ear-
lier and surpassed 100,000
merchants served in the first quarter.
The four year-old company founded
by chief executive Andrew Mason has
been attempting to rebuild investor
confidence after losing more than
Groupon posts
maiden profit
as sales surge
BY KASMIRA JEFFORD
half its market value since its glitter-
ing debut on the stock market in
November last year.
Groupon suffered a string of mis-
steps, particularly related to its
accounting practices. In March, the
Chicago-based company was forced to
revise its fourth-quarter results, after it
underestimated the number of
refunds from disgruntled customers.
Groupons shares rallied 18.5 per
cent to $11.7 on the Nasdaq stock
exchange yesterday its largest
single-day gain since its flotation last
year. Shares surged a further 17.5
per cent in after hours trading.
Groupon Inc
14May 8May 9May 10May 11 May
10.00
10.50
11.00
11.50
12.00
12.50 $
11.73
14May
TUESDAY 15 MAY 2012
6
NEWS
cityam.com
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How the shareholder spring developed
(and where it might go next)
1
2

A
P
R
I
L
30%
of investors at
Smith & Ne phew
fail to back
renumeration
3

M
A
Y
2
7

A
P
R
I
L
31.5%
of shareholders of Barclays fail
to back renumeration
8

M
A
Y
40% do not back Inmarsat pay deal
37% do not back UBS pay deal
do not
back Aviva
pay deal
Sly Bailey of
Trinity Mi rror
quits to avoid
shareholder revolt
Avivas
And rew Mo ss
steps down
1
6

M
A
Y
Gambling rm
888Ho ldings
2
5

M
A
Y
HSBC
2

J
U
N
E
WPP
Ho ldings
1
7

M
A
Y Industrial
materials
rm Cookson
3
1

M
A
Y
Deutsche
Bank
AGM dates for potential shareholder rebellions
59%
do not back William
Hill pay deal
52%
Spread betting and CFD trading can result in losses greater than your initial deposit.
*1 point spreads available during market hours on daily funded trades & daily future
spread bets and CFDs (excluding futures).
Trade today at
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WALL STREET
MAKING NEW HIGHS?
POINT
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WALL STREET
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G
E
T
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Y
I
N ones head, its very easy
sometimes to write off
investment banks chances of
being successful in advisory work
and begin to think theyre not the
powerhouses they once used to be,
that they dont have the star names
they once did and that theyve even
dropped the names that once
meant so much.
How often do I hear City folk say
things like such and such a bank has
seen better days and will never be
the same again. Especially, with
those newcomers like Barclays
knocking on the door at every oppor-
tunity.
And so for many this has been the
case with UBS. It acquired one of the
Citys greatest names, SG Warburg,
when it bought Swiss Bank, but in
many peoples eyes it has not exactly
flourished as was hoped.
An already faltering performance
was made a whole lot worse by a
rogue trader scandal that rocked the
banks investment banking activities
to their foundations last year.
Recently, however, there have been
signs of life in the banks equity advi-
sory business in the City where the
presence of UBS on a series of deals
has made rivals sit up.
For example, one banker, Jonathan
Rowley, was last month on the advi-
sory side of three deals in one week.
He was advising Vodafone on its bid
for CWW, Altimo on Alisher
Usmanovs $5.2bn Megafon deal and
the Thai group PTT on its potential
bid for Cove Energy.
A few days ago UBSs name
appeared again as the global co-ordi-
nator for the listing of Edmund
Truells new blank cheque company,
Tungsten, which is raising up to
200m to invest in financial services
assets.
This is a company with a board
comprised of high-powered City
operators, including ICAP boss
Michael Spencer and former Lazard
banker Peter Kiernan, so it is a high-
profile deal and that board would
have chosen UBS, as well as joint
bookrunners on the deal Numis for
a reason.
Support for the deal, as with Nat
Rothschilds companies Vallar and
Vallares, also suggests the London
markets are not totally closed for
new issues, especially if you take the
out of the equation the sceptre of a
private equity investor selling out.
There has also been some real
progress in the leveraged financing
area where UBS has been at the cen-
tre of some big deals, such as
bookrunning on the refinancing of a
number of key corporates including
Virgin Media, Fiat, Viridian and
Ineos.
Furthermore, JP Morgans recent
problems with a $2bn trading loss
emphasise that even the supposedly
bestest of banks can experience major
hiccups in their trading areas. So, not
only is the UBS rogue trader incident
fading into history somewhat; it has
been superceded by a new investment
banking catastrophe.
So far, so good, but maybe being on
a spate of deals such as these is more
a coincidence that a meaningful
trend and there are enough rival
bankers who tell me that the UBS
resurgence, if it is that, wont last.
Their argument is further supported
by statistics from Reuters Thomson
showing that the bank is only 14th
place in European M&A deals, when
in its heyday it would have been
barely out of the top three places.
But the case for a UBS revival is
maybe not as flimsy as it seems. Its
place in the M&A league table is dis-
torted by the bank not being in the
scrum of advisers in the
Glencore/Xstrata deal due to its alle-
giance to Anglo American.
At 56bn it is such a large deal that
not being involved in it does have
catastrophic implications for its
league table position.
And then theres the buzz about
the place associated with the recent
hire of star banker Andrea Orcel.
He may not be the easiest to work
with but Orcel is one of the best con-
nected financial institutions banker
of his generation and his move to
UBS can only mean one thing; boss
Sergio Ermotti is not going to easily
give up the banks franchise in equi-
ty advisory any time soon.
david.hellier@cityam.com
Follow me on twitter at hellierd
INSIDE
TRACK
DAVID HELLIER
ROYAL MAIL TO SELL HALF OF ITS SORTING OFFICE
Royal Mail said
plans to turn over
half of its main
London sorting
office - Mount
Pleasant - into a
prime residential
hub will be
submitted next
spring, as the group
tries to boost its
value ahead of a
2014 privatisation.
The 12-acre former
prison site in north
London is
undergoing a 32m
facelift to increase
production, move
operations and free
up as much as 6.5
acres of land for
housing.
TUESDAY 15 MAY 2012
7
NEWS
cityam.com
Just because its not
called SG Warburg,
dont write off UBS
Investment bank revenues fall
as reliance on debt sales grows
INVESTMENT banks are becoming
increasingly reliant on revenue
from debt capital markets (DCM) as
other sources of income fall,
according to new research by data
provider Dealogic.
The Dealogic figures show that
DCM revenue accounts for 36 per
cent of global investment bank
income so far in 2012, the highest
share since 1998 on a like-for-like
basis.
Over the last 10 years the average
BY JAMES WATERSON DCM share of investment banking
revenue has been just 26 per cent.
The change suggests that
companies are increasingly choosing
to raise funds by selling debt rather
than issuing equity.
US issuers lead the DCM revenue
ranking with $3bn (1.86bn) so far in
2012, accounting for 40 per cent of
total global revenue.
For the first time the UK is in
second place, generating DCM
revenues of $453m in the year to
date, up three per cent on 2011.
Despite this increase in share,
total DCM revenue is down four per
cent year-on-year to $7.5bn.
JPMorgan leads the global DCM
revenue rankings, dealing with
$619m so far in 2012, followed by
Bank of America Merrill Lynch
($516m) and Citi ($469m).
Total global investment banking
revenue including all fees from
DCM, equity capital markets, loans
and M&A activity has reached
$21.2bn so far in 2012, down a
quarter on the same point last year.
This is well below the pre-crash
peak of $33.6bn recorded in 2007.
INCREASING the pension age in
line with life expectancy could add
a decade to the average working
life of a child born this year,
according to PwC estimates
published yesterday.
The state pension age will rise to
67 by 2028 under current plans, but
will have to rise to 68 by 2031 to
keep up with increasing life
expectancies.
To give the average worker 20
years of retirement, the pension
age will rise to 69 for those born in
1970, 70 for those born in 1974, 75
State pension age is moving
towards mid-80s, warns PwC
BY TIM WALLACE
for those born in 1999 and 77 for
those born in 2012.
People born in 2050 can expect to
work until they are 84, PwC
believes.
However, the retirement ratio
will continue to worsen despite
these rapid increases in the pension
age there were 3.6 workers for
every one pensioner in 1970, but
just 3.2 per pensioner now and
there will be 2.9 per retiree in 2050.
Most people will want to stop
working sooner but may not be
able to afford to bridge the gap to
the start of their state pension,
said PwCs Raj Mody.
Where the state pension age is heading
1964 2050
A person born in
1964
current age: 48
A person born in
2050
our childrens children
A person born in
2012
newborn baby
projected state
pension age:
77
life expectancy at
state pension age:
97
projected state
pension age:
life expectancy at
state pension age:
84
104
projected state
pension age:
life expectancy at
state pension age:
68
88
TUESDAY 15 MAY 2012
8
NEWS
cityam.com
P
O
O
L
S
I
D
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,
R
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D
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ALTERNATIVE stock exchange Plus
Markets yesterday announced that it
will shut down after failing to find a
buyer, bringing to an end more than
six years of trading.
The Board regrets to inform share-
holders that the Companys cash bal-
ance has reached a level at which the
Board has informed the FSA that it
intends to commence a process of
orderly closure, the firm said in a
statement.
The regulated activities of the
group will be wound down over a
period of up to six months in order
to minimise market disruption.
Plus said that since initiating a for-
mal sales process at the start of
February it has had approaches from
major international stock
exchanges and trading platforms,
inter dealer brokers, technology
providers, private equity and other
wealth funds but that none of the
expressions of interest progressed to
a firm offer.
The market was set up in 2005 as a
Plus Markets to
close after sale
process fails
BY JAMES WATERSON
rival to the established AIM exchange
but struggled to establish itself before
the financial crisis reduced the num-
ber of small firms willing to seek a
flotation.
Prominent firms listed on the mar-
ket include Arsenal football club and
brewer Shepherd Neme but at the
end of April only around 160 firms
were traded on the main exchange.
The company made a loss of 5.8m
on revenue of 3m in 2010, its sixth
consecutive loss-making year.
Shares in Plus which is listed on
AIM closed yesterday down 74 per
cent at just 25p.
LLOYDS Banking Group has poached
a senior executive from rival
Standard Chartered (StanChart) to
fill a hole made vacant by the
departure of its former head of
wholesale, Truett Tate.
The appointment of Andrew
Bester, who is the chief operating
officer of consumer banking at
StanChart, will supplant Andrew
Gczy, who had been acting head of
wholesale, and who will now go
back to his management of a
division of the business.
Bester, who is likely to join after
the summer, will be one of a
slimmed-down team that will report
directly to Lloyds chief executive
Antnio Horta-Osrio, after the large
number of reporting lines answering
to him previously made it difficult
for him to run the bank.
The head of wholesale role has
been vacant since January, when
Tate left the bank shortly after
Horta-Osrios return from leave,
which was caused by a severe bout of
stress-induced insomnia.
Bester has previous worked in
roles for StanCharts businesses in
Africa and Asia and was an
investment banker at Deutsche Bank
for six years.
Horta-Osrio said that Besters
extensive and broad experience... in
transforming businesses make him
qualified to lead an overhaul of the
wholesale bank.
The main aim is to grow the busi-
ness by doing more cross-selling
between Lloyds small business and
corporate clients and its wholesale
division.
SHOEMAKER FERRAGAMOS PROFIT BOOMING
ITALIAN luxury shoemaker Salvatore Ferragamo said strong growth across all markets
helped boost net profit by ten per cent in the first quarter to 17m (13.5m). The
fashion house, which made its debut on the Milan stock exchange in June last year, said
revenues in the three months to 31 March rose 23 per cent to 259.6m from the same
period last year. Shares fell one per cent to 17.1 yesterday, valuing the firm at 2.88bn.
Plus Markets Group PLC
14May 8May 9May 10May 11 May
0.20
0.40
0.60
0.80
1.00
1.20 p
0.25
14May
E.ON, one of Britains biggest
energy suppliers, said yesterday it
will not increase energy tariffs for
its UK residential customers this
year, despite rising wholesale
energy prices.
Last week, Centrica said gas
costs would be 15 per cent higher
next winter, while other pressures
would add another 50 to the cost
of supplying energy to the average
home. E.ON also warned over
rising global energy costs.
E.ON freezes its
tariffs for 2012
BY CITY A.M. REPORTER
BEST Buy founder Richard Schulze is
stepping down as chairman after he
failed to tell the board that a former
CEO had an improper relationship
with a female employee, the
electronics retailer said yesterday.
Best Buy said the boards
investigation had found that former
chief Brian Dunns relationship
negatively impacted the work
environment, but involved no
misuse of company resources.
Hatim Tyabji will succeed Schulze.
Founder of
Best Buy quits
BY CITY A.M. REPORTER
TUESDAY 15 MAY 2012
9
NEWS
cityam.com
Lloyds poaches top StanChart
exec for head of wholesale job
BY JULIET SAMUEL
IN BRIEF
Poundstretcher hires new chief
nPoundstretcher has hired Richard Kirk,
the former boss of womenswear retailer
Peacocks as its new chief executive. Kirk
stepped down from the debt-laden
retailer in January after it fell into
administration in the biggest collapse in
the retail sector since Woolworths in
2008. Before joining Peacocks in 1996,
Kirk working as managing director of
Iceland for 18 years.
Thomas Cook shares take a dive
nShares in Thomas Cook plunged more
than 10 per cent yesterday after the tour
operator warned its shareholders this
weekend that it was in danger of adminis-
tration if they failed to support two
planned disposals at its general meeting
next week. The company said some of the
debt lifelines it secured earlier this month
will only become effective if investors
approve plans to sell and lease back
planes and the disposal of five Spanish
hotels. The dire share price performance
came as Michael Healy, who will replace
as Paul Hollingsworth as finance chief on 1
July, joined to begin the handover.
Ally Financial in bankruptcy filing
n Ally Financials mortgage unit yester-
day filed for bankruptcy as the auto
lender said it will sell some international
operations to help it repay $12bn (7bn)
in bailout money. Ally's mortgage unit,
called ResCap, filed for bankruptcy pro-
tection in federal court in Manhattan.
BELGIAN-based insurer Ageas yester-
day recorded a net loss of 84m
(67m) for the first quarter, mainly
as a result of outstanding issues
stemming from its former identity as
part of failed bank Fortis.
The loss was less than analysts had
expected, and the firms insurance
division achieved a strong 15 per
cent rise in net profits to 155m.
This was driven by gains in Ageas
life assurance division, with Asian
income up 22 per cent thanks to a
strong performance in China and
Thailand.
Meanwhile the firms British arm
announced that income was up 11
per cent to 513.3m for the first
three months of the year.
Ageas UKs chief executive Barry
Smith told City A.M. that his division
has seen significant improvements
in profitability and that he expects
Ageas reports
loss but strong
growth in UK
BY JAMES WATERSON
growth to continue.
Were really pleased with the ongo-
ing success. The two standouts are
continued profitability of private car
insurance and [the co-venture with]
Tesco moving into profit, he said.
But there was bad news for con-
sumers on household insurance:
Theres been a lot of claims recorded
because of isolated storms and escape
of water. We think that product
needs to have its prices increased.
Louis Dreyfus set to tap capital
markets as buying spree looms
LOUIS Dreyfus, one of the worlds
largest commodity firms, is set to
issue bonds for the first time in its
160-year history.
The food trading house aims to
raise the cash as it plans a series of
acquisitions as part of a $7bn
(4.3bn) spending programme. It
intends to raise its investment by
40 per cent over the next five
years, compared with 2006-11.
The plan is the clearest sign yet
that Dreyfus will continue on its
own after a series of possible
mergers failed to materialise.
BY PETER EDWARDS
Serge Schoen, chief executive,
said the privately owned business
will fund acquisitions through its
cash flow and by tapping the
capital markets.
We have a strong balance sheet,
but we want to diversify our
sources of capital, including
raising public debt through
bonds, he told the Financial
Times. The bond offering could be
around $500m although Dreyfus
has not put a figure on it publicly
and take place this summer.
Schoen also said an initial public
offering was possible for its LDC-
SEV sugarcane subsidiary in which
the firm has a 65 per cent stake.
Margarita Louis-Dreyfus said she
ruled out a listing for the family
firm, in which she holds a majority
stake through a trust set up after
the 2009 death of her husband,
Robert Louis-Dreyfus. Her main
goal is to ensure the long-term
survival of the company, and the
name of the company, she said.
Merger talks between Dreyfus
and smaller Singaporean rival
Olam International failed last year.
In March commodities giant
Glencore sealed a 3.9bn deal to
buy Canadian grain handler
Viterra.
G4S chief executive Nick Buckles could raise around 100m from a Danish deal
Ageas SA
14May 8May 9May 10May 11 May
1.28
1.30
1.32
1.34
1.36
1.38 1.30
14May
SECURITY group G4S could raise
around 100m after opening talks to
sell part of its Danish business.
The London and Copenhagen-
listed firm said it was looking at
several options including a
divestment. Any deal would be
dependent, however, on achieving a
decent price in the depressed market
for mergers and acquisitions.
Discussions with potential
acquirers are at a very early stage
Danish auction set to bring in
100m for security group G4S
BY PETER EDWARDS and therefore we are unable to
discuss any further details, G4S said
in a statement.
Several private equity houses are
looking at a large part of G4S
Danish operations for 1bn Krona
(107m), according to paper Borsen.
G4S also runs prisons, provides
cash-guarding services and is the
official Olympic Games security
provider. It wants to grow or buy
companies in Brazil, India and China
after a failed 5.2bn merger with a
Danish catering firm last year.
LEADING consumer organisations
yesterday joined with banks to
demand the government institutes
tougher regulations on claims
management companies (CMCs).
Mis-selling scandals involving
products such as payment
protection insurance (PPI) have
created a mini-industry of firms
that say they will help consumers
access compensation.
But some of these firms retain
up to a third of the payout, even
though consumers could process
their own claim for free.
The letter, sent to Justice
Secretary Ken Clarke by Which?,
MoneySavingExpert.com and the
Consumer organisations call
for regulation of PPI claims
BY CITY A.M REPORTER
British Bankers Association, calls
for the government to seek to
stamp out bad practice.
It is essential that urgent action
is taken to encourage better
supervision, self-regulation,
tighter regulation and
enforcement against CMCs by the
Ministry of Justice, said the letter.
We believe the Government has
a critical role to play to help
consumers and the industry by
ensuring third party complaint
handlers are properly regulated
and bad practice is stamped out,
it continued.
Campaigners say that with an
average PPI payout of around
2,750, up to 825 could be
retained by the CMC.
TUESDAY 15 MAY 2012
10
NEWS
cityam.com
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VINCE Cable was forced to defend his
cabinet colleague William Hague yes-
terday after a series of Conservative
attacks on British business provoked
outrage.
Cable said commercial diploma-
cy is a major part of foreign policy
as Hague came under fire from busi-
ness leaders for telling them to stop
complaining about the economy
and work harder.
He (Hague) works extremely hard
with me and my colleagues promot-
ing British business around the
world. A large part of his job is com-
mercial diplomacy and he is doing it
extremely well, said Cable, the
Liberal Democrat business secretary.
The coalition has pinned its hopes
of an economic recovery on cuts in
corporation tax and red tape but yes-
terday Cable played down hopes of a
major impact from George Osbornes
20bn credit easing policy.
Nobody ever argued the credit eas-
ing scheme would solve the problem
of small business lending. We argued
it would cheapen the cost, and that
will happen.
The coalition came under attack
over the economic measures in the
Queens speech and comments from
Hague and defence secretary Philip
Cable in plea to
business after
Hague attack
BY PETER EDWARDS
Hammond, who accused business
leaders of whingeing.
What on earth does the foreign
secretary think this countrys busi-
ness owners do all day? His message is
clear. He is saying that the fact the
economy is not growing has nothing
to do with the governments failed
economic policies, said shadow busi-
ness secretary Chuka Umunna.
He is saying that it is not growing
because the people in all our busi-
nesses out there are not working
hard enough. How out of touch can
the foreign secretary be?
Rachel Reeves, shadow chief secre-
tary to the Treasury, said: Having
choked off the recovery and taken
our economy back into recession,
the government that first blamed
the snow, the royal wedding, and the
Eurozone, now seems to be blaming
everyone but itself for not working
harder.
She was speaking as David
Camerons business advisory group
made up of 23 senior figures includ-
ing Sir Martin Sorrell, Justin King and
Eric Schmidt, the respective heads of
WPP, Sainsbury and Google met at
Downing Street in a session that was
expected to be stormy.
Number 10 refused to reveal what
was said although Sir Martin said it
had been constructive.
Hunt called to answer to House
of Commons ahead of Leveson
JEREMY Hunt yesterday received
fresh calls to face the House of
Commons and answer to email
evidence that he supported News
Corps takeover of BSkyB.
Shadow culture secretary Harriet
Harman asked whether it was
appropriate for Hunt to refuse to
answer parliamentary questions
because instead hes going to tell
Lord Justice Leveson.
Speaker John Bercow replied, The
accountability of a minister to this
House is not diluted or suspended by
BY LAUREN DAVIDSON
a ministers engagement with
inquiries, implying that Hunt
should submit substantive and
timely answers to the Commons.
But Leveson has separately said
that evidence should not be disclosed
before submission to his inquiry.
The discussion in Parliament took
place as Alastair Campbell, Tony
Blairs director of communications,
appeared before the Leveson inquiry.
Campbell, a former political editor of
the Daily Mirror, said there had been
no deal between Blair and Rupert
Murdoch over The Suns support for
Labour before the 1997 election.
I was never witness to a
discussion where [Murdoch] said,
Tony, if you do this and this, well
back you. It just never happened, he
claimed.
Campbell added, I wouldnt
overstate the significance of a couple
of phone calls with Rupert Murdoch,
when asked about correspondence
between Blair and the media mogul
in the run up to the Iraq War. Blairs
spin doctor also said George Bush
had once asked him what Rupert
Murdoch was like, because hed
never met him, which I found rather
surprising.
L
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R
A

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A
M
Chuka Umunna, shadow business secretary, accused Hague of being out of touch
LONDON Heathrow was Europes
busiest airport in 2010, handling
66m passengers, ahead of Paris
Charles de Gaulle and Frankfurts
Main airports, figures released by
the European Union show.
This was in stark contrast with
Stansted, Londons third biggest
airport where traffic fell by seven
per cent in 2010 the second
largest decline in passenger
numbers among Europes top 30
airports after Dublin, which saw
traffic fall by 10 per cent.
London Heathrow retains top
spot as Europes busiest airport
BY KASMIRA JEFFORD
Kastrup in Copenhagen and
Schwechat in Vienna enjoyed the
biggest growth in passengers by
nine and 8.7 per cent respectively.
Eurostat, the statistics office of
the European Union, said nearly
777m passengers across its 27
member states took to the skies in
2010, with some 323m on European
flights, 291m flying out of Europe
and 163m on national flights.
Overall, growth in air passenger
transport slowed to 5.1 per cent in
the fourth quarter of 2010 and 3.5
per cent in the first quarter of 2011
compared with the previous year.
TUESDAY 15 MAY 2012
12
NEWS
cityam.com
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EVER wondered how much time and
money youve squandered meeting
for the sake of meeting and nodding
off as the discussion goes round in
circles?
Well, according to business expert
David Pearl it could take up six years
of your career that is, if you waste
two hours a day in ineffective meet-
ings.
Pearl, whose book on meetings
Will There Be Donuts? is out this
month, has even devised a widget to
check how many millions youve
thrown away by talking about the
football instead of the FTSE. So if you
dont think youve wasted enough, go
to http://donuts.appunit.co.uk and
you can waste a few minutes more.
MADAME Tussauds
yesterday unveiled a
new waxwork image
of the Queen in time
for her Diamond
Jubilee celebration
next month.
It is the 23rd waxwork
model of the Queen at
Tussauds and
observers say it shows
more wrinkles than
the Queen, who
turned 86 in April, has
actually got. Tussauds
is owned by Merlin, a
private equity group.
Author David Pearl says
were putting doughnuts first
CHOPSTICKS IN CHINATOWN
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MORNING UPDATE
Sign up to
our 10:30am
newsletter at
cityam.com
Got A Story? Email
thecapitalist@cityam.com
13
cityam.com
cityam.com/the-capitalist
THECAPITALIST
TUESDAY 15 MAY 2012
THE QUEEN GETS A NEW WAXWORK
One to ones,two
to ones and too
many meetings
HAT designer Philip
Treacy has unveiled
the hat he has created for
model and writer Laura
Bailey to wear at this years
Investec Derby Festival.
Says Bailey, the face of
this years event: The hat
Philip has designed for me
is really a work of art, very
fragile and delicate. I love
the antique rose colour,
which is perfect for early
summer.
Bailey will be sporting
the hat on Ladies day, Friday
1 June. The Queen will be at
the races at Epsom Downs
on the second day, Saturday.
City A.M. is the media
partner for the occasion
and will be publishing a
special Epsom edition.
Grandstand tickets start
from 45 at
epsomdowns.co.uk
SHARES in German TV maker Loewe
jumped 32 per cent yesterday follow-
ing rumours of an Apple takeover.
Online rumours this weekend
claimed the tech behemoth has
offered 87.3m (69.6m) for the high-
end television maker, which Loewes
management has been advised to
accept.
But despite denials from Loewe,
investors jumped on the Frankfurt-
listed stock ahead of a claimed
announcement by this Friday.
If the speculation is correct, the
70m acquisition would be a drop in
the ocean for Apple, whose cash pile
exceeds 100bn.
But the offer would be a far bigger
deal for Loewe, which made a 10m
loss last year.
Hungry Apple fans have been wait-
ing for the Cupertino-based compa-
ny, which already produces a set-top
box, to announce details of an iOS-
based television.
The device, dubbed iTV, has long
been at the centre of a whirring
rumour mill churning out gossip
about its specifications. It is expected
to be controlled by Siri and could hit
shelves within the next 18 months.
Despite the latest Loewe rumours,
Foxconn, the Taiwanese company
BY LAUREN DAVIDSON
that manufactures many Apple prod-
ucts, seems to be expecting to land
the iTV gig. Its chief executive Terry
Gou said in an interview with the
Chinese press last week that the
Foxconn factory is making prepara-
tions although production has yet to
begin.
Gou pointed to Foxconns recent
joint venture with Sharp, also
rumoured to be building the iTV and
owner of a 29 per cent stake in Loewe,
as an example of this preparation.
But the TV industry is not booming
for all. On Friday, shares in Sony and
Panasonic tanked to a three decade
low after the Japanese companies
posted record annual losses, both cit-
ing falling demand for their TV
devices. Samsung has also struggled
with its lossmaking LCD-screen televi-
sion arm.
A
FTER Steve Jobs realised he
was terminally ill, he made a
dying wish. When I was
diagnosed with cancer, I
made my deal with God or
whatever, he said in 2007, which
was that I really wanted to see Reed
[his youngest son] graduate.
Tragically, he didnt get the chance:
Reed Jobs is due to graduate from
Stanford in 2014.
The second most important thing
on his bucket list was to disrupt
and then dominate the TV
industry, much as he did with the
music and mobile phone sectors. It
is unclear whether he felt able to
tick this item off but, shortly before
he died, he told his biographer he
had finally cracked it.
Jobs described an integrated
television set that is completely
easy to use seamlessly linked with
all of your devices. no complex
remotes the simplest user
interface you could imagine.
Apple doesnt make TVs, but if it
did they would be the best TVs in
the world.
Or rather Apple doesnt make
TVs yet. Yesterday, shares in
luxury German TV maker Loewe
BOTTOM
LINE
DAVID CROW
Loewe AG
14May 8May 9May 10May 11 May
6.50
6.00
5.50
5.00
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6.00
14May
TUESDAY 15 MAY 2012
14
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cityam.com
WOULD YOU BUY AN APPLE TV?
Interviews by James Waterson
These views are those of the individuals above andnot necessarily those of their company
Ive already got a TV thats similar so unless
its offering something well above what Ive
already got then probably not. But Apple products tend
to be pretty snazzy so maybe I could be tempted.
DOMINIC HENNESSEY
NORTON ROSE
Im reading the Steve Jobs biography so the
answer is I have no choice, Ill have to buy it.
Apple has done a compelling job in producing products
that we always wanted but never knew we did.
RICHARD LAMBERT
FORMER
DIRECTOR-GENERAL
OF THE CBI

CITYVIEWS
Seamless and simple: the Steve Jobs television dream
surged on rumours that Apple was
poised to snap it up. There are
reasons that this rumour moved
markets while others dont. Such
an acquisition appears to fit the
Apple mould.
We like to think of Apple as an
inward looking company,
mistrustful of outsiders and fiercely
protective of its ever-growing cash
pile. But over the years, Apple has
often made small, bolt-on
acquisitions in areas where it
lacked expertise. In 2000 it bought
SoundJam, an MP3 player which
became the platform for the now
famous iPlayer. It acquired
FingerWorks, the company behind
the multi-touch gestures that are so
crucial to the success of the iPhone
and iPad, five years later. Siri the
voice recognition software on the
iPhone 4S was also bought off the
peg in 2010.
So it makes sense that Apple,
which knows nothing about
making TVs, would look for outside
help. Enter Loewe. Its TVs are
incredibly slim, a must for Apple,
but still contain a 500GB hard disk
drive and sophisticated streaming
abilities, useful if you want a TV
that is seamlessly linked to your
devices. The rumoured price of
$113m also looks about right;
Apple has no interest in paying big
for the likes of a Panasonic or
Samsung.
There are reasons to doubt the
deal though. Firstly, Loewes TVs
are astronomically expensive,
starting at 700 for a base model
and going all the way up to 5,000
too pricey even for Apple
aficionados. Second, they are
imperfect products, beautiful but
flawed. Still, Apples scale and its
perfectionist culture could
overcome these problems, and it
tends to make acquisitions because
there are one or two things it likes
about the firm not because it is
the finished article.
If Loewe isnt the one, you can be
sure that Apple is looking for
someone. When it finds the right
firm, its approach to the TV
industry will follow the Jobs
textbook to the letter: control the
content, control the technology
and control everything about the
user experience. Makers of TV sets
and shows beware.
Possibly, if the price is right. My dads got the
[existing Apple TV] box. I am quite an Apple
nut - Ive got the phone and iPod. The most Id be willing
to pay is about 1,000.
NICK BROWN
NEWSQUEST

Loewe soars on
rumours of an
Apple buyout
Invensys PLC
14 May 8 May 9 May 10 May 11 May
195
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14 May
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G
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SCOTT Thompson, the Yahoo chief executive who stepped down over the weekend
following revelations that he lied about his academic record, has reportedly been
diagnosed with thyroid cancer. A source said Thompson, who took the helm of Yahoo in
January, resigned due to the diagnosis as well as the fiasco over his fabricated CV.
FORMER YAHOO BOSS DIAGNOSED WITH CANCER
CHANNEL 4 yesterday posted an
annual pre-tax profit of 44m,
down 19 per cent, as its share of
viewing declined slightly.
But revenues climbed by 6.2m
to 941.4m, boosted by profits
from box office success The
Inbetweeners Movie, prompting
the broadcaster to increase its
budget for UK commissions by
5m to a historic high of 455m.
Channel 4 said it remains the
commercial market leader in
video-on-demand services, with
429m full-length programme views
initiated a yearly increase of 15
per cent.
Chief David Abraham earned
701,000, including a 490,000
salary and an 88,000 cash bonus.
Channel 4 ups
UK investment
BY LAUREN DAVIDSON
NEWS Corp said yesterday it has
agreed to buy a 19.9 per cent stake in
Bona Film Group, a Chinese film
production and distribution
company.
The financials of the deal were not
disclosed, although a market cap of
$363m (225.5m) points at a price
under $70m. Murdochs
conglomerate will acquire the stake
directly from Bonas founder and
boss, Dong Yu.
News Corp said the rapid growing
pace of Chinas film market makes
Bona an attractive investment.
Box office revenue in China
jumped 28.6 per cent to 13.1bn yuan
(1.29bn) last year. Bona shares, listed
on Nasdaq, jumped almost 15 per
cent in morning trading yesterday.
News Corp to
buy in China
BY LAUREN DAVIDSON
TUESDAY 15 MAY 2012
15
NEWS
cityam.com
Invensys stock climbs on bid reports
as group heads for forecast profit drop
INVENSYS shares were boosted by five
per cent yesterday following reports this
weekend that potential bidders are
circling the engineering company.
Siemens, General Electric, ABB and
Emerson were said to have approached
Invensys within the past few weeks in a
sign that interest in the FTSE 250
company is intensifying.
Analysts were divided over the
likelihood of an imminent offer for
Invensys, as the rumour has been
circulating for years.
These things come around again and
again, one analyst told City A.M.
But another analyst said the situation
has changed in the wake of Invensys
profit warning in January, which
forecast a 60m hit to operating profits.
The stock, which plunged by over a
quarter immediately after the warning
and has yet to recover fully, could dive
further if Invensys full year results
disappoint investors this Thursday,
bringing a potential offer price down
and prompting interested buyers to
swoop in.
Invensys, which makes controlling and
signalling equipment for railways, needs
to entice a large conglomerate that can
take on all of its operations, or break up
its divisions. But the latter could be
tricky without offloading its 4.2bn
pension scheme, plans for which failed
last summer when costs soared to
around 1.7bn.
BY LAUREN DAVIDSON
THE LOCAL assembly in a Japanese
town that hosts a nuclear plant
agreed yesterday it was necessary to
restart two off-line reactors, its
chairman said, the first such nod
since all the countrys stations were
halted after the Fukushima crisis.
But further discussion lies ahead
before two reactors at Kansai Electric
Power Cos Ohi plant in western
Japan can be reconnected to the grid.
With power shortages looming in
the region when demand peaks this
summer, the central government has
been trying to win approval from
towns and prefectures that host
reactors. All 50 reactors have been
off-line since the last one shut down
for maintenance on 5 May.
Nuclear power produced nearly 30
per cent of Japans electricity before
the tsunami and Fukushima crisis
last year.
The government is working on an
energy mix policy it hopes to unveil
this summer, replacing a
programme that had aimed to boost
the share of atomic power to more
than 50 per cent by 2030.
However Greenpeace said the
governments reckless push to get
reactors back in service has left
many communities thinking they
have to choose between risks to their
health and safety, and risks to their
jobs and prosperity.
Japan moves
to open some
nuclear plants
BY CITY A.M. REPORTER
G
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G
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TUC general secretary Brendan Barber
TUESDAY 15 MAY 2012
cityam.com
16
NEWS
TRADE barriers around the world are
stopping small companies exporting
and holding back efforts to rebalance
the economy towards export-led
growth, a survey has revealed today.
Just 32 per cent of small exporters
sell goods or services to the fast-grow-
ing BRIC economies, compared to 73
per cent of larger firms, according to
a study by the British Chambers of
Commerce (BCC).
Meanwhile 88 per cent of all firms
sell to the more stagnant EU coun-
tries, which offer fewer growth
opportunities.
Barriers to trade are a key factor
stopping small firms tapping into
this growth source, the BCC believes,
arguing that smaller businesses
have fewer resources to overcome
these obstacles.
The government could help by sign-
ing more free trade agreements,
according to the BCC, breaking down
tariffs and bureaucracy in more
countries.
Global red tape
holding back
British exports
BY TIM WALLACE The group has also called on UK
Trade and Investment to share prac-
tice on foreign bureaucracy to help
small businesses with few resources.
Britain has the potential to be a
great exporting nation, said BCC
director general John Longworth.
The government must work togeth-
er with business to unlock the poten-
tial of Britains exporters, who will in
turn help to drive the recovery.
Meanwhile the All Party
Parliamentary Small Business Group
called for a cultural shift in attitudes
towards entrepreneurship, asking the
government to add enterprise educa-
tion to the school curriculum and to
give financial support to would-be
entrepreneurs who are claiming job
seekers allowance.
Not only must we create the condi-
tions to help ensure that the educa-
tion and financial systems are
available to supply potential entrepre-
neurs, but society embraces the enter-
prise culture whose full potential is
yet to be explored is these difficult
times, said Brian Binley MP.
CHINESE authorities have cut the
amount of money the countrys
banks have to hold, in the hope of
stimulating the economy and
bolstering growth.
The 50 basis point cut leaves
the reserve ratio requirement at
20 per cent, effective from 18 May,
allowing banks to boost lending
by around 400-500bn yuan
(39.4bn to 49.2bn).
Interest rates fell moderately,
but appear not to have been
affected by the ratio cut, as they
have already moved down in
recent weeks.
China loosens credit rules to
bolster flagging growth rates
BY TIM WALLACE
It follows a run of data showing
the economy slowing, and is the
second such move this year. But
as China is not seen as lacking
liquidity, analysts say the move is
more symbolic and could herald
further, more substantive policy
changes.
The government will likely
take further measures to support
growth, including implementing
more investment focusing on
social welfare-related investment
projects and infrastructure in
rural areas and the western
region, suggested Barclays
Yiping Huang, who also believes
tax cuts may boost growth.
THE NUMBER of men working part
time because they cannot find a
full-time job has more than
doubled in the last four years,
according to a new analysis of
official data published today.
The Trades Union Congress (TUC)
found the number of under-
employed men jumped from
293,000 in December 2007 to
almost 600,000 in the final month
of 2011.
Over the same time period the
number of under-employed women
Under-employment soars as
workers only get part time jobs
BY TIM WALLACE
rose 74 per cent to 780,000,
bringing the total number in
involuntary part time work to a
record high of 1.38m.
Overall unemployment fell in last
months labour market data, but so
did the number of people working
full time.
Any job may be better than no
job at all but people are having to
make huge salary sacrifices to stay
working, said TUC general
secretary Brendan Barber.
This is bad news for family
finances and it is holding back our
economy.
BRITAINS low- to middle-income
households were reliant on
borrowing to fund much of their
spending for more than a decade
before the financial crisis,
according to a report out today.
The poorest 10 per cent of
families outspent their income by
40 per cent by 2007, the Resolution
Foundation revealed today.
These huge burdens in part
contributed to the financial crisis,
and hit those at the bottom of the
income distribution.
Low-income households worse
off after excessive use of credit
BY TIM WALLACE
From 1997 to 2007, the poorest
families saw their incomes grow
by 17 per cent and spending grow
by 43 per cent.
Meanwhile the top 10 per cent
saw disposable incomes rise 13 per
cent and consumption jump 28
per cent, hitting the groups
savings ratio.
Looking to the future, we need
growth that is sustained by gains
spread across the whole income
distribution not ever more debt
for those on the lowest incomes,
said the Resolution Foundations
Gavin Kelly.
Chinese Premier Wen Jiabao is expected to announce further measures to boost growth
IN BRIEF
Polymetal offloads Amikan
Miner Polymetal announced
yesterday that it had sold Amikan ,
which owns the Veduga gold deposit
in the Krasnoyarsk region of the
Russian Federation, to Polygon Gold.
The price tag paid by the Canadian
firm is $20m (12.4m) in cash and 750
ordinary shares of Polygon.
I am very pleased that Veduga, a
non-core asset for Polymetal, has
found a competent owner who is
prepared to take this asset into
production, said Vitaly Nesis, of
Polymetal. Polymetal said it would
lend some technical and regulatory
expertise to privately owned Polygon.
G
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RUSAL, the worlds biggest alumini-
um producer, yesterday posted an 84
per cent drop in first-quarter net
profit as metal prices fell.
Net profit, which included its share
of earnings in Norilsk and non-cash
items, slumped to $74m (46m) in
the three months ended March from
$451m a year earlier.
While global aluminium consump-
tion in the first quarter grew five per
cent from a year earlier, the average
price of the metal used in cars, con-
struction and beverage cans fell 13
per cent to $2,177 per tonne. Rusal
said it was considering cutting back
on its smeltering capacity as a result
of weaker markets.
Chief executive and controlling
shareholder Oleg Deripaska has resis-
ted pressure to dispose of Rusals 25
per cent share in Norilsk Nickel,
which specialises in Nickel and the
precious metal palladium.
A disposal could help make the
companys debt pile more manage-
able, some analysts have said.
Deripaskas plans for a merger
Rusal earnings
fall by 84pc as
metal takes hit
BY JOHN DUNNE
with the company were dashed when
the global crisis struck.
He said yesterday: Even though
near-term market prospects are still
rather clouded, there are positive sig-
nals, with aluminium consumption
growth in the US, strengthening of
auto sales in Germany, and a strong
rise in aluminium consumption in
Japan, as well as high level of premi-
ums, that allow us to look optimisti-
cally into the future.
The first quarter of 2012 has
proved to be a tough test for the alu-
minium industry with the global
demand for the metal slowing down
and the aluminium price weaken-
ing.
Adjusted earnings before interest,
tax, depreciation and amortisation
(Ebitda) dropped 38 per cent to
$237m, compared with an average
forecast of $257m pencilled in by ana-
lysts.
Meanwhile Rusal also nominated
Matthias Warnig, a former East
German secret service officer who
has known president Vladimir Putin
since the 1990s, as an independent
director of the firm.
ESSAR Oil reported a quarterly
loss yesterday as refining margins
weakened.
The company, which is 87.09
per cent-owned by India-focused
Essar Energy, reported a loss of
5.15bn rupees (60m) for the
fourth quarter to 31 March,
compared with a profit of 3.2bn
BY JOHN DUNNE rupees for the equivalent period
last year. The company has been
hit by weaker margins for its
refining business as well while its
financial year has been blighted
by a shutdown at its Vadinar
power generation operation which
was hit by poor weather.
The company said refining
margins had dropped from $5.29
to $4.60 in the latest quarter.
Essar Energy Plc
14May 8May 9May 10May 11 May
125.00
127.50
120.00
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130.00
132.50
135.00
137.50 p 124.90
14May
TUESDAY 15 MAY 2012
17
NEWS
cityam.com
FTSE 250-listed oil and gas
explorer Afren has said its
successful Ebok North fault block
exploration well offshore Nigeria
has encountered excellent quality
reservoir sands, with data support
indicating oil in excess of 100m
barrels of oil, towards the upper
end of its expectations. Chief
executive Osman Shahenshah said:
We are delighted to have
continued our run of exploration
success this year with the Ebok
NFB well, which follows on from
the Okoro East discovery.
Afren buoyed
by Nigeria find
BY CITY A.M. REPORTER
OIL company Genel Energy, whose
chief executive is former BP boss
Tony Hayward, said yesterday it
will buy a 23 per cent stake in the
Bina Bawi exploration licence in
Kurdistan for $175m (109m).
The licence lies alongside
Genel's Taq Taq oilfield, which is
already producing. The new
exploration could yield 500m to
1bn barrels of oil and oil
equivalent, Hayward said.
Genel expands
in Kurdistan
BY CITY A.M. REPORTER
Platinum producer Lonmin said
yesterday pre-tax profit tumbled in
the first half of its financial year, as
weak European demand weighed on
prices and a record level of safety
stoppages imposed by South African
authorities hit its output and
operating costs. The worlds third-
largest platinum producer said
production problems, a 10 per cent
drop in average prices and costs up
almost 11 per cent in the six months
reduced pre-tax profit to just $18m
(11m). That compares to $159m a
year earlier.
Lonmin profit
takes a dive
BY CITY A.M. REPORTER
TOKYO Electric Power Co (Tepco) yesterday posted an annual loss of almost two trillion
yen (6.2bn) as compensation claims for the Fukushima nuclear disaster triggered by
a tsunami and earthquake last year brought it to the brink of bankruptcy. The
company is to be taken over by the government, which will inject one million yen.
TEPCO LOSS TOPS 6BN AFTER FUKUSHIMA CRISIS
Essar Oil reports 60m quarterly
loss as refining margins shrink
08:45 09:00
Welcome Address by Allister Heath:
Making prots in a chaotic world
09:00 10:00
Richard Farleigh: How to tame the lion,
my trading secrets
10:30 11:20
Charting Techniques: Panel discussion
with James Hughes, Alejandro
Zambrano, Angus Campbell, David
Jones and Ashraf Laidi
10:30 11:20
Jamie Seattele & David Rodriguez:
Forex Insight
11:30 12:20
Politics meets Trading: Panel discussion
with Guido Fawkes, Allister Heath and
Steve Sedgwick
11:30 12:20
Listed Products Masterclass:
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Deborah Fuhr and Alex Houpert
12:30 13:20
Equities Insight with Gary Baker
12:30 13:20
Social Media meets Trading with Dan
Moczulski, Yoni Assia, David Jones,
Julio Bueso and Joshua Raymond
13:20 14:20
Lunch
14:20 15:20
Lex van Dam: 5 Steps to trading success
15:30 16:20
Spreadbetting and CFD Masterclass
with David Jones
15:30 16:20
Boris Schlossberg: Strategies for
day trading
16:40 17:30
Masters of Forex: Panel discussion with
Boris Schlossberg, John Hardy, Richard
Farleigh and David Rodriguez
16:40 17:30
Global Investment trends with
Tim Guinness
17:40 18:30
The Future of Trading: Panel discussion
with Tim Howkins, Simon Denham,
Torben Kaaber and Drew Niv
17:40 18:30
Quant Trading Masterclass with Emilio
Tomasini & Rakesh Shah
18:30 19:30
Champagne Reception
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IN BRIEF
WS Atkins in US private placement
Engineering consultancy group WS
Atkins is looking to raise $75m
(46.5m) in the US fixed income
markets via a private placement, it said
yesterday. The firms first foray into the
US markets will see it sell seven-year
notes with a coupon of 4.38 per cent. It
will use funds raised to repay drawn
funds and support its growth plans.
Diploma profit boosted by seals
Technical products supplier Diploma
said yesterday its half-yearly profit had
increased 21 per cent, helped by strong
performance in its seals segment in
North America, especially in the after-
market business. Pretax profit rose to
23.3m for the first half of the year from
19.3m a year earlier. Adjusted operat-
ing margins rose to 20.8 per cent from
19.6 per cent. October-March revenue
rose 13 per cent to 127.1m. Revenue
from the company's seals business
increased 28 per cent to 48m. Seals
account for more than a third of
Diploma's revenue and is its largest busi-
ness, followed by controls and life sci-
ences.
Misys deal approved by Portugal
Vista was yesterday given the green
light by the Portuguese antitrust author-
ities to go ahead with its planned
1.27bn takeover deal for financial soft-
ware firm Misys. The two companies last
week postponed the scheme court hear-
ing, now scheduled for 28 May, citing
problems with competition clearance in
Portugal. The 3.50 per share acquisi-
tion is now set to complete in a fort-
night, with Misys scheduled to leave the
London Stock Exchange on 1 June.
G
E
T
T
Y
OUTSOURCING firm Serco has won
nearly 4bn of contracts so far this
year, but said yesterday its revenues
from the Americas had slumped.
The FTSE 100-listed group, which
runs services from the Docklands
Light Railway to prisons and air traf-
fic control centres around the world,
said it expected first-half revenue to
grow by around six per cent, almost
entirely from last years acquisitions.
Serco has signed contracts worth
2.9bn this year and been named
preferred bidder on a further 1bn of
work, which includes a 350m con-
tract to operate the Lifeline ferry
services to the Northern Isles of
Scotland.
Shares sank two per cent to 539.5p,
however, after it said its Americas
division faced a difficult outlook
because of US spending cuts.
Conditions for the US federal mar-
ket and hence our Americas division
currently remain very tough, but for
the year as a whole we anticipate
that further strong growth in Africa,
the Middle East, Asia and Australasia
(AMEAA), the improving UK outlook,
Serco starts the
year with 4bn
contracts win
BY PETER EDWARDS
and the delivery of cost efficiencies
will see us meet expectations, said
chief executive Christopher Hyman.
The group, which employs over
100,000 people in 30 countries, said it
is on track to meet expectations.
Analysts expect 2012 pre-tax profit to
come in at around 275.84m.
Last week Serco agreed an extended
deal worth about 1.5bn with the
Ministry of Defence to provide and
maintain Britains nuclear warheads.
The new pricing agreement for the
Atomic Weapons Establishment con-
tract, reached together with Sercos
joint venture partners, Lockheed
Martin and Jacobs Engineering, will
run for five years from 2013.
In February Serco said it had identi-
fied 30bn of opportunities across
the group, with more than a quarter
coming from its AMEAA region
where the firm is targeting expan-
sion.
Jonathan Jackson, head of equities
at Killik & Co said: The strength of
recent contract awards and progress
on operational efficiencies reinforce
the groups optimism over the second
half and its confidence in achieving
full-year expectations.
BRITISH builders merchant and
do-it-yourself retailer, Travis
Perkins, said yesterday it was on
track to meet profit expectations
for the year after posting a rise in
sales and market share gains in
the first four months of the year.
The group, which also trades as
City Plumbing, Keyline, Tile Giant,
Wickes and BSS, said group
revenue rose 4.4 per cent in the
four months to 30 April, with
gross margins in line with last
year.
Overall at a group level the
outlook for the year remains
Travis Perkins says it is winning
market share as sales increase
BY CITY A.M. REPORTER unchanged and we remain
confident of meeting consensus
expectations, said the firm.
Travis Perkins said it continued
to gain like-for-like market share
in all of its four divisions
general merchanting, specialist
merchanting, plumbing and
heating, and consumer.
Like-for-like sales were up 2.6
per cent in general merchanting
but down 5.2 per cent in the
consumer division.
Net debt was reduced by 50m
in the period to 583m and the
firm said it was on track to meet
its 450m year-end net debt
target.
TUESDAY 15 MAY 2012
20
NEWS
cityam.com
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Travis Perkins boss Geoff Cooper said he was pleased with the companys progress
TUESDAY 15 MAY 2012
21
LONDONREPORT
Grant Thornton
The professional services firm has
appointed Andy Morgan as a partner in its
London corporate finance team. Morgan is
a technology expert and has over 17 years
experience in mid-market mergers and
acquisitions. He joins from PwC, where he
led its UK technology, media and
communications sector team.
Mazars
John McMahon has been appointed global
head of bank regulation and restructuring
at the accountancy firm. McMahon
previously worked as head of financial
institutions at the Central Bank of Ireland.
He was also the Irish representative to the
European Banking Authority. He has also
held senior roles at Promontory Financial
Group, the FSA and Deloitte.
Metro Bank
The high street bank, formed in 2010, has
appointed Danielle Harmer to the newly
created role of human resources director.
She will report directly to chief executive
Craig Donaldson. Harmer was most
recently human resources director at
Barclays Bank, and she has served in
similar positions at Lloyds TSB, Bank of
Scotland and Halifax Community Banks.
Insparo Asset Management
Insparo has appointed Cian Walsh as
senior portfolio manager, with a
specialism in emerging markets. He will
oversee the launch of Insparos new local
markets fund. Walsh began his career as
an emerging markets strategist at
Dresdner Kleinwort Benson, before
spending two years as portfolio manager
at Standard Asset Management.
Berwin Leighton Paisner
The law firm has announced the
appointment of arbitration specialist
Roman Khodykin. Previously at Clifford
Chances Moscow office, he will be based
in London and work closely with BLPs
Moscow team. He is an associate
professor at Moscow State Institute of
International Relations, with a PhD in
conflict of laws.
Rede Partners
The fundraising advisory firm has
announced that Tom Donovan is joining as
a partner and to lead its North American
business. He arrives from the Credit Suisse
Private Fund Group, where he served as a
senior distribution team member. He was
also previously associate director on JP
Morgan Securitiess debt capital markets
team.
Brightpearl
The cloud-based commerce software
provider has appointed Fergus Gloster to
its board of advisers. Gloster is managing
director of EMEA Marketo, the revenue
performance management provider, and
was previously senior vice president of
corporate sales, Europe, at
Salesforce.com.
WHOS SWITCHING JOBS
Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
index. That was its lowest close
since December 2011, after it fell
as far as 5,436.69 in intra-day
trade.
Bank shares suffered as Greeces
failure to form a government
fuelled talk of its possible eventu-
al exit from the Eurozone an
unprecedented move with unpre-
dictable consequences for Europe.
Uncertainty spooked investors,
who demanded higher premiums
at a Spanish debt auction.
Clearly whats going on in
Europe is not helpful. Markets
dont like uncertainty, said
Jonathan Jackson, head of equi-
ties at Killik & Co. Its a global
market something like three
quarters of the earnings (on FTSE
100) are from outside the UK.
He advised buying stocks for the
long-term, focusing on companies
with attractive yields such as drug
maker GlaxoSmithKline and
mobile operator Vodafone.
B
RITAINS stock market
slumped to its lowest level this
year yesterday and looked
poised for further falls, with
cheap valuations unlikely to lure
back investors while concerns
persist over Europes debt and the
health of the global economy.
Heavyweight energy and mining
stocks made the biggest dent on the
FTSE 100, with another cut in Chinas
reserve requirement ratio seen as a
sign that the key natural resources
consumer is still in need of economic
stimulus and may need to buy less of
everything, from oil to luxury cars.
The FTSE 100 finished the day
down 110 points, or 2 per cent at
5,465.52, wiping some 28bn off the
FTSE at lowest for 2012 as Euro debt crisis bites
Logica PLC
p
76
75
74
73
72
71
70
69
8May 9May 10May 11May 14May
69.75
14 May
LOGICA
Deutsche Bank has upgraded
the business and technology
service company from hold to
buy with an target price of
100p after stable first quarter
growth and guidance that full
year revenue is on track.
DASHBOARD CITY
CITY MOVES
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NEW YORK
REPORT
Kesa Electricals PLC
p
59
58
57
56
55
54
53
52
8May 9May 10May 11May 14May
56.00
14 May
PEARSON
JP Morgan Cazenove has kept its
overweight rating on the
publisher and upped its target
price from 1,440p to 1,445p,
seeing a strong growth story
that is likely to outperform as
investors turn to defensives.
KESA
Investec has upgraded the
electrical retailer from sell to
hold despite lowering
forecasts ahead of final quarter
results, seeing like-for-like sales
down 6.1 per cent at Darty due
to tough comparables.
Riedel the wine glass company invites
you to a special tasting hosted by
Maximilian Riedel, 11th Generation
master glassmaker
Fri 25th May & Sat 26th May at
Vinopolis, Stoney Street, London
(next to Borough Market)
Friday tickets from 55 per person (group)
with 100 of glasses to take home
Saturday tickets from 34 per person
(group) with 65 of glasses to take home
For details & tickets visit
www.riedel.co.uk
U
S stocks slid yesterday as
investors dealt with the one-
two punch of worsening
political upheaval in the Euro
zone and the possibility that Chinas
economy may be softening more
than previously thought.
Economically sensitive shares,
including banks and energy compa-
nies, paced the decline. Exxon Mobil
lost 1.2 per cent to $82.12. The
NYSEArca oil index fell 1.8 per cent.
State television in Greece reported
the president of the fiscally belea-
guered country will continue talks on
forming a coalition government
The Dow Jones industrial average
dropped 125.25 points, or 0.98 per
cent, to 12,695.35 at the close. The
Standard & Poor's 500 Index lost 15.04
points, or 1.11 per cent, to 1,338.35.
The Nasdaq Composite Index fell 31.24
points, or 1.06 percent, to 2,902.58.
FTSE
8May 9May 10May 11 May 14May
5,700
5,650
5,600
5,550
5,500
5,450
5,465.52
14May
GLOBAL BUSINESSES
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Pearson PLC
p 1,190
1,180
1,170
1,160
1,150
8May 9May 10May 11May 14May
1,159.00
14 May
BESTof theBROKERS
T
HE Scottish government has
confirmed that it will set a
minimum price for alcohol
of 50p per unit, while a 40p
price is planned for England
and Wales for later in the year. The
basic idea is that consuming beer,
wine and spirits is bad, and that
basic economics can help deter it. If
a legally imposed minimum price is
set above the current market rate
then this should reduce the
quantity of alcohol demanded.
Theres two points to make here.
The first is that this logic is true for
any market. For example, if you set a
minimum price on labour you
should expect the demand for
labour to fall. Indeed this is the pri-
mary explanation for why minimum
N
O ONE can dispute that the
UK economy needs more
growth. It seems that the
coalitions essential austerity
measures are not enough.
But despite its cheerleaders, the
usual Plan B, based on debt-financed
infrastructure spending, wont make
any difference to growth while
denting confidence. One such plan
suggested 30bn in spending. Over
three years, this would barely
register on GDP. Yet last week even
Justin King of Sainsburys seemed to
suggest that more government
investment on big infrastructure
bets was part of the answer. Such
advocates are selling a line in
economic boomerangs.
Competition is key to growth, not
government spending. And recession
hits small firms and new entrants
more than the brand names. Small
firms depend more on bank funding,
as larger firms can use cash reserves.
They also face higher sales risks, so
labour regulations impact more on
hiring decisions. They do not have
the cash reserves or contacts to move
cityam.com/forum
The advocates of
more debt-financed
spending are selling
economic boomerangs
In association with
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Agree? Disagree? Got a sharp comment?
The Forumwants you to join the debate.
Top responses will be reprinted in The Forum.

22
TUESDAY 15 MAY 2012
NICK BOSANQUET
Heres the real Plan B for Britain:
We need a competition revolution
to emerging markets, where returns
require high initial marketing spend.
Recession sharply increases these
problems for new entrants.
That matters, as we can learn from
the 1980s and 1990s, when new
entrants contributed more than two
thirds of total growth mainly due
to the scrapping of nationalised
industries. For a long time, UK air
policy was focused on protecting
British Airways routes. The gap left
by denationalisation opened the way
for better service and more jobs by
the low cost airlines. And the main
benefits went to people with lower
incomes, not to business class users.
Consider mobile phones as well,
where a old BT-style monopoly would
have slowed down development, and
where remarkable new types of
service and virtual infrastructure
havent cost the taxpayer a penny.
Competition lowers prices. Even in
the current recession, and against
the rising price of raw materials,
competition from Aldi and Lidl has
benefited supermarket shoppers.
Monopoly and protection lead to
higher prices, reducing demand for a
wide range of goods. The Anti-Corn
Law League got it right high corn
prices reduced demand across all
markets, as the workers lost
purchasing power. After repeal, the
UK population doubled while the
price of wheat halved.
We need a Queens Speech for
competition, starting with the
banks. Weve had a raft of regulation
and a lot has increased risk. The Co-
op should be given the green light
for entry into banking, instead of
being delayed by the FSA, and others
should be encouraged to move in.
The Polish economist Michael
Kalecki showed that recession helped
increase monopoly power. This has
certainly been the case with banking
in the UK since 2010.
We need a more dynamic
competition policy, to challenge
market power and encourage new
entrants despite the recessions
chilling effects. The end of the BAA
monopoly on airports has already
brought a wave of new investment,
and better service. There are many
other areas, including healthcare
and transport, where competition
would have highly positive effects.
Planning restrictions have boosted
monopolies in construction, one of
the worst hit areas of the recession.
Drawn-out wrangles raise costs and
uncertainty about returns. The only
bright spot has been the entry of
small building firms, increasing
customer access. We need to push
ahead with reduced controls.
Lastly we must increase incentives
to recruit staff. We should move
towards an Irish rate of capital gains
tax, one paid by all firms without
exemptions. If 12.5 per cent is right
for a left wing party like Sinn Fein,
then why should we set it higher?
For the next five years, there should
be a virtual enterprise zone, where
new entrants and small firms would
not pay employers national
insurance contributions. Small firms
could form networks to enter
emerging markets overseas.
In the last two years, the UK has
seen lower growth than expected.
But growth depends on promoting
competition, not more spending.
London residents can at least be
grateful to Justin King for opening a
Sainsburys by Richmond station.
Prices at Marks and Spencers nearby
have since fallen by 20 per cent.
Nick Bosanquet is professor of health
policy at Imperial College and an associate
at Volterra Consulting.
wages are counter-productive and
thus economically illiterate. It
would be nice if policy makers could
see this contradiction.
The second point is to challenge
whether drinking is bad. Most peo-
ple accept the health and social
costs of excessive drinking, but just
because an activity has costs does
not mean it should be discouraged.
Skiing is a highly costly hobby, but
that doesnt make it wrong. Like ski-
ing, some people (not all) find alco-
hol consumption to be enjoyable.
Not all drunks are lairy and intolera-
ble drink is a great social lubricant
that turns strangers into friends and
is where adventures begin.
The temperance lobby often
defends its illiberalism by suggest-
ing that the use and abuse of alco-
hol is not only a matter of weighing
private costs and benefits, but also
gives rise to externalities. It claims
that individual choices have a nega-
tive impact on others, and this pro-
vides scope for government
intervention. But imagine a situa-
tion where someone drinks so much
that he or she requires a liver trans-
plant. Does the fact that the NHS
pays for your operation mean you
are not bothered about having one?
And isnt the root problem that the
NHS separates actions from costs,
and thus acts as a subsidy for
unhealthy behaviour?
But what is almost always missing
from the debate is that drinking pro-
vides positive externalities as well.
People that drink tend to do so
socially, and this builds social capi-
tal. There is evidence to suggest that
some of these benefits are actually
manifested in higher wages for
drinkers. Economists Bethany Peters
and Edward Stringham found that
drinkers earn 10-14 per cent more
than non-drinkers. The chart (right)
shows the difference in American
mean earnings depending on
whether people ever have occasion
to use any alcoholic beverages, or
whether they abstain.
Anthony J. Evans is associate professor
of economics at Londons ESCP Europe
Business School. www.anthonyjevans.com
anthonyjevans@gmail.com.
FRONTLINE
ECONOMICS
ANTHONY J. EVANS
Minimum booze prices miss benefits: Raising a glass can increase your pay
Mean earnings (full time workers)
Male
$30,146
$17,216
D
r
i
n
k
e
r
Female
$25,432
$13,982
D
r
i
n
k
e
r
A
b
s
t
a
i
n
e
r
A
b
s
t
a
i
n
e
r
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23
Brown belt building
[Re: Restrictions choke London, Friday]
Tim Leunig has a balanced view of
development. He recognises the role of
open space, green belts and fingers, and
transport links. But I disagree with him on
the creation of new suburbs. He himself
says why: Los Angeles. Do we really want
urban sprawl stretching from Maidstone and
Guildford to Swindon and the other side of
Milton Keynes? London has acres of defunct
industrial and commercial land. If every
local authority mapped underused or
unused land, and if a mechanism could be
agreed by which it could be redeveloped to
provide housing and green space, then our
needs would largely be met. And rural
England would not be compromised.
Roger Juer
Greek Cassandras
[Re: Grexit will happen more quickly than
politicians think, yesterday]
Youre clearly on top of what is happening.
All of this was predicted by those of us who
follow the real world, as opposed to the
fantasy world seen from Brussels. Another
EU finance ministers summit wont change
a thing. We must manage the Grexit now
and then for Spain, Portugal and, if
necessary, Italy and Ireland.
AndrewEllis
When Greece joined the euro, it was well-
known its financial figures had been fudged.
But the Eurozone still admitted it. It thus has
a moral duty to maintain Greece in its ways,
whatever the cost to itself.
JohnDavenport
M
OST economists expect
catastrophic consequences
if any country exits the
euro. Like most
conventional wisdom,
such a view will be contradicted
not by opposing ideas but by the
march of events.
If the euro broke up, it wouldnt be
the first currency union to come
apart. Within the past 100 years,
there have been 69 currency break-
ups. Astonishingly, almost all of the
exits from a currency union have
been associated with low macroeco-
nomic volatility. In almost all cases,
the transition was smooth and rela-
tively straightforward.
Historical examples provide a
roadmap for exit. The problem in
Europe is that peripheral countries
face unsustainable imbalances in
real effective exchange rates and
very high external debt levels.
Orderly defaults and debt reschedul-
ing coupled with devaluations are
inevitable and even desirable.
European politicians dont want to
contemplate the end to their ambi-
tious economic project. However,
Greece and Portugal, and perhaps
Spain, Ireland and Italy will ulti-
mately conclude that its in their
best interest to exit.
The move from an old currency to
a new one can be accomplished
quickly and efficiently. All local
money and debt would be redenom-
inated into a new currency.
Typically, before old notes and coins
can be withdrawn, they are stamped
in ink or a physical stamp is placed
on them, and old unstamped notes
are no longer legal tender. In the
meantime, new notes are quickly
printed. Capital controls are
imposed at borders in order to pre-
vent unstamped notes from leaving
the country. This entire process isnt
easy but it can be accomplished in
TOP TWEETS
Grexit was pretty much inevitable anyway;
the bailouts just helped European banks.
@ObliviousReaper
Its useful to be reminded that currencies are
social constructs, and this is why Greek exit
may be very quick.
@amingardi
Why do so few understand likelihood of a
Grexit. There could easily be military
government in Greece.
@AlistairNic
Why can a politician not make a patriotic
call for everyone to work harder?
Misinterpretations are ridiculously sad.
@TheBigFish_UK
Do we need rules to stop football teams
like Man City from simply buying success?
YES
Not before time, new rules are being introduced that should help
keep Europe's football clubs on the straight and narrow
financially and prevent them, Manchester City or Chelsea-style,
from buying the game's top honours. The new rules will
theoretically put an end to a period during which multi-millions
have been spent buying star players in deals that can never
generate financial returns. The influx of money from overseas
tycoons has created a gulf that the likes of Aston Villa or Derby
(remember they were both league champions once) can never
bridge, unless they attract benefactors of their own. And it has
also aided the import of overpaid tetchy stars such as Carlos
Tevez at the expense of well thought out youth policies that
would bring sustainable long-term rewards and enable more of
the nation's young players to live out their dreams.
David Hellier is deputy editor of City A.M.
David Hellier
NO
Julian Harris
The action-packed finale to the Premier League season showed
off much that is great about modern football, as Manchester City
grasped the title with two frantic injury time goals. Admittedly
there is much to dislike, too: quiet all-seater stadia, a disregard
for loyal fans, unfortunate chairmen, et cetera. But these wont
be solved by incoming Financial Fair Play rules, designed to force
clubs to live within their means. Instead, the rules threaten to
embed the big clubs at the top while preventing new investors
from backing challengers with new money. In an ideal world,
clubs would not be play-things of oil tycoons. But a better way to
solve this is through fans owning shares in their clubs, a method
that is working brilliantly for Swansea. More red tape, however,
will just create a mess of loopholes, unintended consequences,
and questionable punishments.
Julian Harris is an economics and sports reporter at City A.M.
RAPIDresponses
Euro exits are the
least bad option
for the periphery
relatively simple and transparent
steps.
Defaults and debt restructuring
should be achieved by exiting the
euro, re-denominating sovereign
debt into local currencies and forc-
ing a haircut on bondholders.
Almost all sovereign borrowing in
Europe is done under local law. This
would allow for a re-denomination
of debt into local currency.
Devaluing and paying debt back in
drachmas, liras or pesetas would
reduce the real debt burden.
Countries that have defaulted and
devalued in the past have experi-
enced short, sharp contractions fol-
lowed by very steep, protracted
periods of growth. The Eurozone
periphery is likely to be different
though. Rapidly ageing populations
and structural government over-
spending mean that root and
branch reforms are needed.
However, such reforms are impossi-
ble in the current regime.
The best way to promote sustained
growth in the European periphery
can be summarised by the three Ds:
depart, default and devalue. This
would allow periphery countries to
emerge from the crisis with clean
balance sheets and more competi-
tive exchange rates. If history is a
guide, exiting the euro may be the
best chance European periphery
countries have to heal themselves
Jonathan Tepper is the co-author of
Endgame, chief editor of Variant
Perception and a Wolfson Economics Prize
finalist.
TUESDAY 15 MAY 2012
JONATHAN TEPPER
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G
E
T
T
Y
G
E
T
T
Y
T
HE French markets took a
tumble yesterday on fears of a
Greek exit from the Eurozone
the Paris Bourse index, the Cac
40, was already looking vulnerable
with the fears that socialist President
Francois Hollande would scratch the
countrys signature from the
European fiscal compact and
abandon Frances attempts to take a
grip of its fiscal deficit, which EU
chiefs last week projected would run
to 24bn in 2013. It fell by 2.3 per cent,
with the Dax also falling close to two
per cent.
The week has kicked of with nigh-on
unmitigated woe for the Eurozone
Greece appears to be on the brink of
being the first of the currency union
to exit the euro, the French have said
non to curtailing spending, Spanish
bonds are still widening and a slow-
down in Chinese industrial demand
threatens the European economy.
Euro-dollar basis swaps are running
to four-month lows, indicating a fail-
ure of the Long-Term Refinancing
Operation (LTRO). Rather than a form
of quantitative easing, the LTRO was
designed to ease credit contraction. As
the swaps market seems to be demon-
strating, a second half a trillion euro
move by the European Central Bank
has not achieved that aim, with many
arguing that the stigma trade,
where short sellers target those banks
that made use of the swap lines, has
caused more damage to European
financials than the LTRO did good.
But despite all of this, markets have
dipped, rather than fallen off the
cliff into the financial abyss. As David
Buik, markets commentator for BGC
Partners, points out, the financial
markets have shown ability over the
last ten years to deal with both good
and bad news with aplomb. Rather
than good news or bad news, it is
uncertain news that sends the mar-
kets into an agnostic dumping of
stocks. With this in mind, traders
should not expect a change in politi-
cal direction from Hollande. The
French have elected anti-austerity
presidents since 1848 and their 24th
president has not bucked that trend.
The new head of state will increase
spending. It is highly likely that he
will renege on European fiscal com-
pact agreements. The important thing
for the markets and for those trading
them is the clarity of the information
conveyed. The markets can, in the
short term, digest increased French
public spending. They can also, in the
short term, digest a 400bn Greek
exit. But it is uncertainty that will
turn the stomachs of investors and
trigger an almighty dumping of
European stocks.
BY CRAIG DRAKE
TUESDAY 15 MAY 2012
24
cityam.com
TRADING MANAGEMENT WEALTH
fx360.com
The contents of this column are provided for general information purposes only. One should consider the
appropriateness of the information in light of their own objectives, financial situation or needs before trading.
CD11UK.074.010612
RISK ASSETS SAG WITH
CENTRAL BANKS ON HOLD
I
NVESTOR sentiment has turned less
bullish over the last couple of months,
with a marked pull-back in risk assets
since the beginning of May. This
contrasts with the sharp rally in major
global stock indices, precious metals and
oil that ran throughout the first quarter of
this year.
The current sell-off followed the news
that the Federal Reserve, the European
Central Bank and the Bank of England
were all prepared to hold off from further
intervention, preferring to monitor
developments until their next respective
meetings. At the end of April, the Feds
Open Market Committee was only a
touch more upbeat about the economy
than it had been in January, while
indicating a raised concern about
inflation ticking higher. Yet in the press
conference that followed, chairman Ben
Bernanke blamed rising fuel prices for a
temporary bulge in inflation, which he
expected to moderate going forward. He
left the door open for further stimulus,
saying that additional easing remains
on the table.
Following its rate decision on 3 May, ECB
president Mario Draghi was more
hawkish than many analysts expected.
He expressed the view that more time is
needed for the full effects of the 1
trillion Long-Term Refinancing
Operations to work through the financial
system. So despite the troubles across
Europe, the ECB remains in wait and
see mode. The Bank of Englands
monetary policy committee also
refrained from adding to its own asset
purchase programme. But keeping the
stimulus ball in the air, the Bank of Japan
added an additional 5 trillion (38.7bn)
to its asset purchase programme (at the
bottom end of expectations), while the
Swiss National Bank continues to add
liquidity as it prints francs in an
increasingly desperate struggle to
maintain the SFr1.20 floor.
Recent economic data out of China points
to a slowdown. Manufacturing PMIs have
been ambiguous, but the latest trade
data suggests that the growth rates for
imports and exports are declining. Last
Friday, CPI and PPI moderated a touch
indicating that inflation may be
stabilising, while industrial production
fell sharply month-on-month. With
Chinas policymakers downgrading the
countrys GDP outlook to 7.5 per cent
from 8 per cent in 2012, some market
participants believe that this heralds a
more accommodative phase of monetary
and fiscal policy in the months ahead. But
there has been a marked slowdown in the
growth of Chinas foreign exchange
reserves, thanks to weakness in many of
Chinas export markets. This mitigates
against a loosening of monetary policy,
and this weeks 50 basis point cut in the
Required Reserve Ratio was widely
viewed as an irrelevance.
But it is the US Federal Reserve and the
ECB which really matter. The ECBs next
meeting is on 7 June and the Feds is two
weeks later. This means that investors
have to evaluate the risks in holding
financial assets with the central bank
liquidity tap turned off, and an increasing
number of them are deciding to bail out.
The political impasse that has followed
the Greek general election has raised the
probability that Greece will leave the
Eurozone. Yet while the vast majority of
Greeks voted for anti-austerity parties,
these are usually the same people who
desire to keep the euro as their currency.
But whether Greece exits or not, the
Eurozone is in trouble. Of course, this
means that the global banking system is
in trouble too. Spain has just part-
nationalised Bankia (its fourth largest
bank) less than a year after it was floated
and sold to the public as a solid
investment. In addition, JP Morgans
$2bn-plus hedge loss is a stark
reminder of just how opaque bank
balance sheets are; how overleveraged
many financial institutions may prove to
be and how nothing has changed
fundamentally four years after the Great
Financial Crisis first hit. Much more of this
and we wont have to wait until June for
the central banks to get the excuse they
need for further intervention.
twitter.com/fx360 facebook.com/fx360
DAVID MORRISON
DIRECTOR OF CURRENCY RESEARCH, GFT
THE TIPSTER
Aviva shedding profits and chief execs
T
O lose a chief executive is always
rather unfortunate, but Avivas
long-suffering shareholders must
be hoping that Andrew Mosss
departure will allow the company to
begin a recovery operation, but any effort
will be long and involved. A possible sale
of the non-life insurance operations
might help shore up the capital base, but
the groups big exposure to the Eurozone
will mean heavy going. IGs price on Aviva
is 289p-290p.
Equities continue to fall in a general risk
off pull-back as the Eurozone crisis
escalates. But the banking sector is
coming under additional pressure
following JP Morgans shock
announcement last week that its chief
investment office lost $2bn on its
hedges. Yesterday, Barclays stock
price crashed through the 50 per cent
retracement of its September 2011 to
March 2012 rally. Investors are
increasingly worried about the lack of
transparency on all banks balance
sheets. GFT quotes Barclays cash CFD
189.80p-189.90p.
TUI Travel has seen its outlook
improved over the previous six months.
Its share price is close to half of where it
was in mid-2007 leaving upside
potential. Cash flow problems at its
largest competitor Thomas Cook have
handed the company a golden
opportunity to increase market share. As
the euro weakens, holidaying within the
continent becomes a more viable
alternative to domestic breaks. Should
the price break 205p, we could see the
stock fly. SpreadCo quotes 177.93p-
178.73p for TUI Travel.
CRAIG DRAKE
G
E
T
T
Y
France
surrenders its
austerity plans
5-year Ibex
2012 2007 2009 2010 2011
9,000
8000
7,000
10,000
11,000
12,000
13,000
14,000
15,000
16,000
Cac 40
13:00 14:00 15:00 16:00 17:00 9:00 10:00 11:00 12:00
3,050
3,040
3,060
3,070
3,080
3,090
3,100
3,110
3,120
3,059.95
14 May
Despite the election of a socialist the markets wont take kindly to French exceptionalism, writes Markus Huber
ty measures, but is of the opinion that
these measures are too harsh and are
unnecessarily choking the eco-
nomic recovery. Instead, he
wants increased spending and
debt, in an attempt to kick-start
the French economy.
Opinions vary widely on
Hollandes position. Some see
him as the saviour of Europe,
bringing back growth and
jobs and putting an end
to the so-called mad-
ness of extreme aus-
terity. Others think
his election is a sign
of the beginning of
the end for the euro,
as he causes insta-
bility and loss of
confidence result-
ing in an impov-
erished Europe
for years to come.
I n e v i t a b l y ,
promises made
during an elec-
tion campaign
and the reality of
putting them into
action once elected are
two different things.
Real change is very
CURRENCY STRATEGIST
JOEL KRUGER
My pick: Long euro-yen at 0.805, stop on a 0.7950 daily close
Expertise: Technical analysis
Average time frame of trades: 1 day to 1 week
The cross rate has now accelerated to fresh yearly and multi-
month lows, leaving daily studies well stretched and in
serious need of a major corrective bounce. The daily Relative
Strength Index is now correcting from dramatically oversold
territory, and we like the idea of the fresh long in favour of a
significant bounce over the coming sessions. There is also a
good deal of medium-term resistance now turned support
from 2008 at current levels.
ANALYST PICKS
Hollande cannot be ultra radical
F
OR the third year running,
Greece has managed once
again to steal the limelight in
the month of May. The Greek
elections have managed to eclipse
the results of the French elections,
which resulted in one of the
biggest political shifts seen in a
major European economy in
almost two decades. While events
in Greece, no matter how severe,
are only temporary and will be
resolved for better or worse in a
few months time at the latest,
President-elect Franois Hollande
will be in power for five years,
which is plenty of time to majorly
affect French politics and its
economy.
UNITED THEY STAND
A united Eurozone under the
strong leadership of Chancellor
Angela Merkel and President
Nicolas Sarkozy (who steps down
today) with the help of the
European Central Bank and the
International Monetary Fund has
just about managed to restore
some calm and trust through the
agreement to implement austerity
measures across Europe. Hollande
is not outright opposed to austeri-
CURRENCY STRATEGIST
ILYA SPIVAK
My pick: Stay short euro-dollar
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
Last week I sold euro-dollar at $1.3004, as prices closed
below support at $1.3025 initially targeting $1.2865 and
$1.2674. The pair has now touched the first objective and I
will look for a close below it to move my stop-loss to
breakeven before allowing it to continue lower. Continuing
uncertainty about the political situation in Greece remains
the catalyst. A bounce to $1.30 will be treated as an
opportunity to add to the position.
CHIEF STRATEGIST
JOHN KICKLIGHTER
My pick: Short euro-dollar; long euro-Swissie and euro-Aussie
Expertise: Fundamental and technical analysis
Average time frame of trades: 1 day to 1 week
We seem to be closer to a seismic shift in risk trends than any
other time this year. Yet, Ive been fooled before. Im looking
for balance. For outright risk, I have taken a short euro-dollar
position from $1.2935 against a close above $1.3000. Less
risk sensitive, I like a euro-Australian dollar above Au$1.2900
(risk vs. Eurozone crisis). Lastly, there is the euro-Swiss Franc
long (above SFr1.2060). Until the Swiss National Bank gives
or acts, Ill likely stick with this one.
TUESDAY 15 MAY 2012
MANAGEMENT WEALTH
cityam.com
Hell walk the line
hard to come by, as there are just
too many limitations and obstacles
preventing changes from
becoming as radical as origi-
nally intended. Often it does-
nt take very long until
disappointment sets in with
the electorate and approval
ratings are taking a big tum-
ble some would say
that President
Obama and Prime
M i n i s t e r
Cameron are
prime examples,
both having
fallen out of
favour very
quickly with a
majority of vot-
ers.
Outside of
F r a n c e ,
Hollande appears
to be rather limit-
ed in what he can
do. Not only has
Merkel already
voiced her opposi-
tion to any changes in the stability
pact, but other struggling countries
like Spain and Italy although no
doubt tempted by the prospects of
stronger growth through increased
spending will most likely refrain
from doing so, or only to a small
degree, as the risk of returning
instability in financial markets is
simply too a price too high to pay (at
least for now).
SOCIALISMS FAILINGS
Hollande is also considered to be
less radical than former Socialist
President Mitterrand. Mitterands
election in 1981 as the first socialist
president of the fifth republic came
for many as a surprise. Initial
reforms leading to the nationalisa-
tion of banks and other companies
and an increase in wages turned out
to be highly unsuccessful in tackling
the struggling economy, forcing
Mitterrand into a U-turn just a few
years later. Also, the relationship
with Germany turned out to be
much better than expected, with
both conservative Chancellor
Helmut Kohl and socialist President
Franois Mitterrand working closely
together on many important issues
concerning Europe.
We need to wait to see what kind
of spending measures Hollande will
put into action, but senseless give-
aways will probably receive instant
and severe punishment by financial
markets mainly through higher
French bond yields and tumbling
stock markets.
The election of Hollande might not
necessarily be helpful and construc-
tive in combating the European
financial crisis. Unity within the
Eurozone could suffer, making it
more difficult to provide swift and
decisive action in case of an emer-
gency. However, an early outright
confrontation between Hollande
and Merkel is unlikely as is an open
rebellion by Hollande against all
austerity as long as growth within
Europe and the financial crisis itself
dont continue to take more turns
for the worse. Instead, initially it is
expected that politicians will try to
work together to try to find com-
mon ground, not necessarily
because any of them has the desire
to do so, but rather because nobody
wants to be held individually
responsible for tumbling stock mar-
kets and sharply rising bond yields.
Markus Huber is a senior trader at ETX
Capital.
TRADING
25
L
A
U
R
A

L
E
A
N
/
C
I
T
Y
A
.
M
.
DAVID
JONES
TIM
GUINNESS
ALLISTER
HEATH
RICHARD
FARLEIGH
LEX
VAN DAM
cityamactivetrader.com
0203 201 8900
See the full programme & buy tickets today at
or call
24
TH
MAY 2012
THE GRANGE HOTEL, TOWER BRIDGE
In association with Champagne reception sponsor Produced by
TUESDAY 15 MAY 2012
26
TRADER CONFERENCE ACTIVE
cityamactivetrader.com
On 24 May, the Grange Tower Bridge Hotel hosts Active Trader 2012, where Rakesh Shah (left) and Emilio Tomasini (right) are speaking
Emilio Tomasini and
Rakesh Shah explain
to Marc Sidwell what
theyll say on 24 May
What is your trading
background?
Rakesh Shah started off in 1995
servicing hedge funds by
setting up margin FX trading at
investment banks. Emilio Tomasini,
a quant trader since 1992, set up the
biggest real money trader
championship in Italy. Now at
Kingly Capital, we trade systems for
Algo Flex, a listed Sicav Fund and
apply quant techniques in financial
advisory for institutions and high
net worth individuals.
What will you be covering in
your session at City A.M.s
trading conference on 24 May?
Price pattern behaviour. Is it
possible to beat the financial
markets with an easy technique?
This is the question many finance
practitioners ask themselves when
they encounter financial quant
trading the first time. We will show
some techniques based on price
patterns that everybody can apply.
Why is this important for
traders?
Markets react in the same way
to the same stimulus, so we can
rely on this common behaviour to
predict future price action with
statistical significance. Algo tools
that are robust and significant can
change your trading life.
What is the most important
lesson to learn as a trader?
To suddenly increase risk
capital after a winning streak is
a mistake. Statistically, every strategy
has drawdowns; most traders
increase size at the wrong time.
What are the most important
tools a trader needs to have?
Systematic trading gives you the
power to trade all day using
predefined rules and strategies
without emotion interfering, often
the biggest downfall of a trader. Plus
knowledge of statistical risk
measurement: if you cant measure
the risk, one day youll be wiped out.
What is the worst mistake a
trader can make?
To believe your thoughts are an
accurate map of the markets.
Knowledge is only power if it can be
applied correctly in the market.
Why are you excited to be
taking part in City A.M.s
trading conference?
To give the professional reality
of money management. Its the
first event focused on getting the
real trading to active traders.
To meet dozens of trading gurus like these,
buy a ticket for Active Trader on 24 May:
www.cityamactivetrader.com
Or call: 020 3201 8900
Two weeks to go: Buy your ticket
for City A.M.s trading conference
RAKESH SHAH & EMILIO TOMASINI
5.40PM-6.30PM, 24 MAY
Rakesh Shah is a quant trader and
founder of Kingly Capital, a regulated
advisory asset manager. He started in
investment banking in 1995, has worked
on trading desks in London and New
York. His experience gives him a unique
insight into the practical application of
the markets most profitable trading
strategies.
Follow him on Twitter: @KinglyRakesh
Dr Emilio Tomasini is an adjunct
professor of corporate finance at the
University of Bologna. He has recently
published Trading Systems, which
builds on 20 years of research into
effective trading systems on an intraday
and daily basis. Tomasini applies highly
scientific and practical methods to
trading systems and algorithmic
trading.
Q
A
Q
A
Q
A
Q
A
Q
A
Q
A
Q
A
R
E
U
T
E
R
S
C
ONTRACTS for difference
(CFDs) and spread betting
require a strong stomach
for risk. They are both
leveraged products that allow
traders to make predictions on
the movements of thousands of
live markets. As only a fraction
of the total value of the contract
is paid up-front, profits can
climb to many times an initial
stake. And losses can multiply
just as starkly.
But your appetite for risk
doesnt need to be superhuman
for you to be successful at
trading sleepless nights or
wasted weekends neednt be an
inevitable consequence if you
make use of an indispensable
triad of tools.
Stop-loss orders, guaranteed
stop-losses, and trailing stops
can all limit stinging losses and,
for various reasons, should be
part of any traders vital defence
mechanisms, especially in such
a volatile market. Quite simply,
they are instructions to brokers
for action to be taken when a
market hits a certain level. But
they all have their appropriate
moments and its important to
work out how they should be
used, as well as when.
CONFIDENT TRADING
Chris Beauchamp, market
analyst at IG Group, says stop
losses really are a must when it
comes to trading, not just for
the insurance against excessive
losses but also for peace of
mind. Beauchamp hits on an
essential function of these
orders. Stop losses can provide a
psychological protection against
neurotic trading.
A stop loss works by
automatically taking an investor
out of a trade if the price drops
below a predetermined level.
Beauchamp uses an illustrative
trade on BP as an example. If
you buy BP when it trades at
400p, at 1 per point of
movement, you may decide to
put in a stop-loss at 380p.
Should BP drop to that level,
you will be taken out of the
trade with a 20 loss. If BP
continues to fall over the next
three days, then you have been
spared an even bigger loss. The
protection the stop loss offers
saves the trader the hassle of
being glued to a trading screen
all day as well as potentially
significant amounts of money.
STOPPED IN ITS TRACKS
However, stop-loss orders arent
themselves always a guaranteed
protection against loss. If the
market takes a sharp downturn,
and multiple stop-loss orders are
triggered for multiple traders, it
is possible for the stop to initiate
at a different price from the one
expected. Guaranteed stop-loss
Stop loss tools are
indispensable as a
way to control risk
TUESDAY 15 MAY 2012
28
MANAGEMENT WEALTH TRADING
cityam.com
But over-caution may limit potential profit, writes Tom Welsh
E
LECTIONS in the Eurozone sparked a
bout of severe risk aversion last week,
as the possibility of a Greek exit from
the single currency suddenly looked
more likely than it has for some time. As had
been expected, no party won an overall
majority in Greece, and there were heavy
losses for the two major parties that had
dominated Greek politics for the past forty
years. Over the week, there were three
attempts by various politicians to actually
form a government, with each giving up in
short order, raising the prospect of new
elections in June. The
particularly worrying
element in the
elections was the big
increase in support
for anti-bailout
parties, suggesting
that a second round
of elections could see
an anti-bailout party
actually win a
majority. Such a
possibility
might
actually
result in a
Greek
departure
from the
Eurozone,
a
prospect
that was
being
INSIGHT
DAVID JONES
EURO TROUBLES MEAN THE US
COULD OFFER A SAFER HAVEN
CHIEF MARKET STRATEGIST
will be minimal.
LOCKED IN PROFITS
Just as there is no need to
manually and ceaselessly check
up on trades, theres also no
need to manually adjust stop
loss orders in line with a
changing market. Trailing stops
allow you to lock in profits as
your trades move in the right
direction. In Beauchamps BP
example, if the trade moves in
your favour and the price rises
to 430p, you can put in a trailing
stop at 410p, with an instruction
to follow the price upwards at a
distance of 20 points. So,
according to Beauchamp, if BP
rises to 480p, and then drops
back suddenly to 450p, your stop
takes you out at 460p, locking in
a gain of 60 points.
Although not without
limitations, stop loss orders are
a sensible hedge against total
CFD or spread-betting account
wipeout. And they can be used
creatively, a positive method of
solidifying gains as much as a
protection against negative
losses. Crucially, they make it
possible to make sensible money
from a volatile market. Stop loss
orders are an essential tool for
any trader.
orders, for a fee, provide even
stronger protection and (as per
their name) guarantee that the
stop will trigger at a pre-set
price. If trading over the
weekend, for example, especially
when the news cycle is driving
turbulence in the markets, a
guaranteed order may provide
peace of mind and protection.
But stop losses, whether
guaranteed or otherwise,
shouldnt be set too tightly.
Sandy Jadeja, chief technical
analyst at City Index, uses a tool
called the average true range, a
measure of the average
movement in a market over a
given timeframe. Jadeja
recommends placing stops
outside this average true range,
to prevent a premature or false
stop being triggered. Especially
when markets are turbulent,
traders will not want to trigger
an untimely stop, crystallising
losses, when prices may move in
the other direction later in the
day.
There is, therefore, a
downside to being too protective
with stop loss orders. Potential
profits will be limited if the
trader is too rigid in the range
of movement he or she will
accept, even if potential losses
Stop loss orders can prevent glum faces if the market moves sharply
actively discussed in Europe over the
weekend.
One of the big features of 2012 so far
has been the strength of US markets,
especially when compared with their
counterparts in Europe. While the FTSE
has given up its gains for the year, the
Dow remains in positive territory, and this
has been reflected in clients trimming
their short positions on the leading US
index to 54 per cent short. Continuing
problems in the Eurozone, where Spain
and Italy remain problematic and Greece
looks to be hurtling towards the exit,
mean that the US markets could offer a
degree of safety from the current market
turmoil.
In times of volatility, gold often
provides a refuge. The relentless rise of
the yellow metal was one of the great
news stories of 2010 and 2011,
but 2012 has been much less
favourable. The price has
dropped below $1,600 per
ounce and is now pushing
lower. However, there still
appears to be appetite
for gold among IGs
clients, with sentiment
remaining resolutely
bullish.
George Papademos
looks to the exit as
Greek Prime Minister
EUR/USD FTSE 100 US SPX 500 GBP/USD GERMANY 30
55%
SHORT
66%
LONG
58%
LONG
67%
SHORT
75%
SHORT
0.01%
0.04%
-1.89% -0.02% -2% -0.9%
SILVER Australia 200 AUD/USD GOLD USD/JPY
-0.4%
92%
LONG
88%
LONG
67%
LONG
61%
LONG
-0.7% -1.74% -1.74%
54%
SHORT
Clients trading this market also have positions on
Client sentiment on the Dow
46% of IG clients with open positions in this
market expect the price to rise
54% of IG clients with open positions in this
market expect the price to fall
60%
LONG
IG IS DIFFERENT SEARCH IG MARKETS
TUESDAY 15 MAY 2012
29
MARKETS
cityam.com
LON GD ONCE FIX AM..................................1642.50 -10.00
SILVERLDN FIX AM.........................................30.43 -0.77
MAPLE LEAF 1 OZ ............................................32.39 0.75
LON PLATINUM AM ......................................1557.00 -8.00
LON PALLADIUM AM.....................................667.00 -8.00
ALUMINIUM CASH......................................2064.00 -2.00
COPPERCASH............................................8400.00 -127.00
LEAD CASH..................................................2143.00 -7.00
NICKEL CASH.............................................17425.00 -95.00
TIN CASH..................................................22225.00 -450.00
ZINC CASH..................................................2028.00 -20.50
BRENT SPOT INDEX........................................119.54 0.17
SOYA...........................................................1480.00 -175.00
COCOA ........................................................2372.00 13.00
COFFEE...........................................................181.30 -1.55
KRUG ..........................................................1702.60 -16.20
WHEAT ..........................................................171.20 -1.93
AIR LIQUIDE......................................................98.45 0.14 102.30 80.90
ALLIANZ ...........................................................84.89 0.61 107.45 56.16
ANHEUS-BUSCHINBEV.....................................56.75 1.25 57.23 33.85
ARCELORMITTAL ................................................12.63 -0.24 25.40 10.47
AXA...................................................................10.54 0.00 15.94 7.88
BANCO SANTANDER...........................................4.58 0.02 7.86 4.49
BASF SE............................................................60.92 -0.39 70.22 42.19
BAYER...............................................................53.39 0.20 59.44 35.36
BBVA..................................................................4.88 -0.05 8.44 4.83
BMW.................................................................71.68 0.61 73.95 43.49
BNP PARIBAS....................................................29.10 -0.95 55.20 22.72
CARREFOUR ......................................................14.75 -0.20 28.19 14.53
CRH PLC.............................................................15.27 -0.21 16.93 10.28
DAIMLER ...........................................................40.71 -0.66 53.95 29.02
DANONE ...........................................................54.39 0.59 54.81 41.92
DEUTSCHE BANK ...............................................31.23 -0.83 44.56 20.79
DEUTSCHE BOERSE...........................................46.90 -0.13 57.68 35.65
DEUTSCHE TELEKOM...........................................8.44 -0.01 11.38 7.88
E.ON ...................................................................17.18 0.20 23.54 12.50
ENEL...................................................................2.40 0.00 4.86 2.38
ENI ....................................................................16.69 0.04 18.72 11.83
FRANCE TELECOM..............................................10.29 0.05 15.96 9.86
GDF SUEZ............................................................17.15 -0.18 28.00 17.03
GENERALI ASS. ...................................................9.86 -0.14 16.38 9.79
IBERDROLA.........................................................3.44 0.03 5.94 3.38
INDITEX............................................................69.07 1.52 74.73 52.20
ING GROEP CVA...................................................5.19 -0.06 9.07 4.21
INTESA SANPAOLO..............................................1.06 -0.03 2.13 0.85
KON.PHILIPS ELECTR.........................................14.30 0.10 20.75 12.01
L'OREAL............................................................92.84 0.26 94.80 68.83
LVMH...............................................................129.35 0.95 136.80 94.16
MUNICHRE.....................................................106.60 -1.35 118.35 77.80
NOKIA.................................................................2.67 -0.03 6.36 2.60
REPSOL YPF.......................................................13.89 0.14 24.45 13.69
RWE..................................................................32.23 0.06 44.48 21.15
SAINT-GOBAIN...................................................31.87 -0.13 47.43 26.07
SANOFI .............................................................58.54 0.32 59.56 42.85
SAP...................................................................49.53 -0.34 54.85 32.88
SCHNEIDERELECTRIC........................................46.74 -0.03 60.28 35.00
SIEMENS...........................................................68.98 0.03 99.07 62.13
SOCIETE GENERALE............................................17.27 -0.77 46.60 14.32
TELECOM ITALIA..................................................0.85 0.02 1.03 0.70
TELEFONICA ......................................................10.68 0.02 18.34 10.57
TOTAL ................................................................36.16 0.02 43.61 29.40
UNIBAIL-RODAMCO SE.....................................142.55 0.70 162.95 123.30
UNICREDIT..........................................................2.70 -0.13 11.57 2.20
UNILEVER CVA ..................................................26.27 0.04 27.16 20.96
VINCI..................................................................35.15 -0.03 45.48 28.46
VIVENDI.............................................................13.79 -0.15 21.37 12.42
VOLKSWAGEN VORZ .......................................145.00 2.60 152.20 86.40
Price Chg High Low
EU SHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . . . . . . . . 5766.55 8.44 0.15
FTSE 250 INDEX . . . . . . . . . . . . . . . 11483.31 7.42 0.06
FTSE UK ALL SHARE . . . . . . . . . . . . 2999.54 3.96 0.13
FTSE AIM ALL SH. . . . . . . . . . . . . . . . 774.49 -1.41 -0.18
DOWJONES INDUS 30 . . . . . . . . . 13206.59 -61.98 -0.47
S&P 500. . . . . . . . . . . . . . . . . . . . . . 1391.57 -10.74 -0.77
NASDAQ COMPOSITE . . . . . . . . . . . 3024.30 -35.55 -1.16
FTSEUROFIRST 300 . . . . . . . . . . . . . 1044.39 0.74 0.07
NIKKEI 225 . . . . . . . . . . . . . . . . . . . 9380.25 29.30 0.31
DAX 30 PERFORMANCE . . . . . . . . . 6694.44 -16.33 -0.24
CAC 40 . . . . . . . . . . . . . . . . . . . . . . 3223.36 -2.97 -0.09
SHANGHAI SE INDEX . . . . . . . . . . . 2440.08 1.64 0.07
HANG SENG. . . . . . . . . . . . . . . . . . 21249.53 -59.55 -0.28
S&P/ASX 20 INDEX. . . . . . . . . . . . . 2659.90 1.40 0.05
ASX ALL ORDINARIES. . . . . . . . . . . 4494.50 -10.30 -0.23
BOVESPA SAO PAOLO. . . . . . . . . . . 62104.15 -319.41 -0.51
ISEQ OVERALL INDEX . . . . . . . . . . . 3252.53 -15.92 -0.49
STRAITS TIMES. . . . . . . . . . . . . . . . 3000.94 -5.20 -0.17
IGBM . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00 0.00 0.00
SWISS MARKET INDEX . . . . . . . . . . 6097.68 -11.09 -0.18
Price Chg %chg
3M....................................................................89.39 -0.13 98.19 68.63
ABBOTT LABS...................................................63.05 0.40 63.20 46.29
ALCOA................................................................9.58 -0.15 17.96 8.45
ALTRIA GROUP .................................................32.55 0.18 32.62 23.20
AM INTL GRP.....................................................34.14 -0.62 35.05 19.18
AMAZON.COM.................................................229.45 -0.80 246.71 166.97
AMERICAN EXPRESS ........................................60.86 -0.19 61.42 41.30
APPLE .............................................................581.82 -4.16 644.00 310.50
AT&T...................................................................33.11 0.07 33.33 27.29
BANK OF AMERICA ............................................8.00 -0.16 12.71 4.92
BOEING CO........................................................76.83 -0.43 80.65 56.01
CATERPILLAR..................................................100.67 -1.96 116.95 67.54
CHEVRON .......................................................105.99 -1.04 112.28 86.68
CISCO SYSTEMS..................................................19.72 -0.12 21.30 13.30
CITIGROUP........................................................32.48 -0.22 46.00 21.40
COCA-COLA.......................................................77.44 0.28 77.82 63.34
COMCAST CLASS A............................................30.36 -0.06 30.88 19.19
CONOCOPHILLIPS .............................................54.26 -0.33 80.13 53.81
CVS/CAREMARK................................................46.14 0.22 46.22 31.30
DU PONT(EI) DE NMR.......................................53.26 -0.41 57.50 37.10
EMC CORP.........................................................28.22 -0.29 30.00 19.84
EXXON MOBIL...................................................85.65 -0.55 88.13 63.47
GENERAL ELECTRIC............................................19.61 -0.16 21.00 14.02
GOOGLE A........................................................611.02 3.76 670.25 473.02
HEWLETT PACKARD..........................................24.48 -0.77 41.74 19.92
HOME DEPOT....................................................52.47 -0.24 52.88 28.13
IBM.................................................................207.24 -0.82 210.69 157.13
INTEL CORP ......................................................28.56 -0.62 29.27 19.16
J.P.MORGAN CHASE...........................................43.01 -0.19 46.49 27.85
JOHNSON & JOHNSON .....................................65.34 0.01 68.05 55.76
KRAFT FOODS A ...............................................39.59 -0.11 39.99 24.30
MC DONALD'S CORP..........................................97.04 -0.47 102.22 78.20
MERCK AND CO. NEW........................................39.17 -0.12 39.50 29.47
MICROSOFT........................................................31.76 -0.04 32.95 23.65
OCCID. PETROLEUM..........................................89.82 -2.56 117.89 66.36
ORACLE CORP...................................................29.38 -0.33 36.50 24.72
PEPSICO............................................................66.91 0.08 71.89 58.50
PFIZER .............................................................22.60 -0.06 23.30 16.63
PHILIP MORRIS INTL.........................................89.96 -0.35 91.05 60.45
PROCTER AND GAMBLE ....................................64.51 0.53 67.95 56.57
QUALCOMM INC................................................63.55 -0.69 68.87 45.98
SCHLUMBERGER................................................72.61 -1.56 95.53 54.79
TRAVELERS CIES...............................................64.75 0.01 65.27 45.97
UNITED TECHNOLOGIE.......................................80.91 -0.64 91.83 66.87
US BANCORP DELAWRE....................................31.94 -0.10 32.98 20.10
VERIZON COMMS..............................................40.64 0.04 40.84 32.28
VISA CL A .........................................................116.41 -5.78 125.35 73.11
WAL-MART STORES..........................................58.99 -0.02 62.63 48.31
WALT DISNEY CO...............................................43.81 0.27 44.50 28.19
WELLS FARGO & CO..........................................33.39 -0.18 34.59 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight.........................................0.500 0.00
BoE IR 7 days..............................................0.500 0.00
BoE IR 1 month...........................................0.500 0.00
BoE IR 3 months.........................................0.500 0.00
BoE IR 6 months ........................................0.500 0.00
LIBOR Euro - overnight................................0.255 0.00
LIBOR Euro - 12 months ................................1.281 0.00
LIBOR USD - overnight .................................0.147 0.00
LIBOR USD - 12 months................................1.049 0.00
Halifax mortgage rate ................................3.990 -0.02
Euro Base Rate.............................................1.500 0.00
Finance house base rate..............................1.500 0.00
US Fed funds ...............................................0.250 0.00
US long bond yield.......................................3.120 -0.01
European repo rate......................................0.134 0.00
Euro Euribor .................................................0.317 0.00
The vix index .................................................17.13 0.25
The baltic dry index....................................1149.0 -3.00
Markit iBoxx...............................................243.59 0.15
Markit iTraxx...............................................140.42 4.30
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
US SHARES
BAE Systems . . . . . . . . .288.6 -3.8 340.8 248.1
Chemring Group . . . . . . .361.1 -10.8 677.0 316.9
Cobham. . . . . . . . . . . . .224.3 0.0 239.5 165.9
Meggitt . . . . . . . . . . . . .413.0 5.0 413.9 304.9
QinetiQ Group . . . . . . . .156.1 -0.8 159.3 101.5
Rolls-Royce Holdi . . . . .859.0 17.5 861.0 557.5
Senior . . . . . . . . . . . . . . .211.3 1.4 213.0 135.6
Ultra Electronics . . . . . .1716.0 -9.0 1780.0 1305.0
GKN . . . . . . . . . . . . . . . .204.9 -0.2 245.0 157.0
Barclays . . . . . . . . . . . . .212.9 -0.8 283.8 138.9
HSBC Holdings . . . . . . .563.3 1.9 656.2 463.5
Lloyds Banking Gr . . . . . .31.7 -0.4 58.0 21.8
Royal Bank of Sco . . . . . .24.6 -0.2 42.9 17.3
Standard Chartere . . . .1454.5 1.5 1672.0 1169.5
AG Barr . . . . . . . . . . . . .1137.0 -21.0 1395.0 1031.0
Britvic . . . . . . . . . . . . . . .381.3 2.5 444.0 289.9
Diageo . . . . . . . . . . . . .1614.5 24.5 1617.0 1112.0
SABMiller . . . . . . . . . . .2575.0 -5.0 2660.0 1979.0
AZ Electronic Mat . . . . .323.5 4.5 338.1 206.1
Croda Internation . . . .2251.0 19.0 2282.0 1597.0
Elementis . . . . . . . . . . .206.2 -0.7 208.7 107.5
Johnson Matthey . . . .2368.0 16.0 2408.0 1523.0
Victrex . . . . . . . . . . . . .1435.0 -5.0 1590.0 1025.0
Yule Catto & Co . . . . . . .238.6 0.5 253.0 148.0
/$ 1.3147 0.0006
/ 0.8124 0.0005
/ 105.64 0.2674
/ 1.2309 0.0007
/$ 1.6181 0.0018
/ 130.03 0.2012
FTSE 100
5766.55
8.44
FTSE 250
11483.31
7.42
FTSE ALL SHARE
2999.54
3.96
DOW
13206.59
61.98
NASDAQ
3024.30
35.55
S&P500
1391.57
10.74
Brown (N.) Group . . . . .237.9 3.0 304.5 222.4
Carpetright . . . . . . . . . .602.5 -4.5 741.0 375.0
Debenhams . . . . . . . . . .85.5 1.3 85.8 51.2
Dignity . . . . . . . . . . . . .855.5 1.5 866.0 727.0
Dixons Retail . . . . . . . . .18.8 0.7 19.9 9.4
DunelmGroup . . . . . . .524.0 1.0 533.0 389.0
Halfords Group . . . . . . .277.7 -0.3 405.9 268.6
Home Retail Group . . . . .83.4 -4.2 228.5 72.5
Inchcape . . . . . . . . . . . .373.0 1.4 425.4 268.1
JD Sports Fashion . . . . .835.0 0.5 1030.0 570.0
Kesa Electricals . . . . . . . .57.0 1.0 151.4 52.8
Kingsher . . . . . . . . . . .291.4 1.0 313.8 217.0
Marks & Spencer G . . . .355.5 -1.8 402.2 301.8
Next . . . . . . . . . . . . . .2990.0 19.0 3060.0 2153.0
Sports Direct Int . . . . . . .315.6 2.9 315.6 190.0
WHSmith . . . . . . . . . . .529.5 4.5 559.0 451.6
Smith & Nephew . . . . .629.5 24.0 694.0 521.0
Synergy Health . . . . . .830.0 -8.5 981.0 809.5
Barratt Developme . . . .134.3 -0.9 151.5 67.5
Bellway . . . . . . . . . . . . .802.0 -6.0 859.5 540.5
Berkeley Group Ho . . .1294.0 -4.0 1414.0 1025.0
Bovis Homes Group . . .480.5 -7.4 518.5 326.5
Persimmon . . . . . . . . . .626.0 -6.5 706.5 374.0
Balfour Beatty . . . . . . . .270.1 5.3 333.7 214.6
CRH . . . . . . . . . . . . . . .1236.0 -24.0 1663.5 1053.0
Galliford Try . . . . . . . . .645.0 -3.5 653.0 383.8
Kier Group . . . . . . . . . .1176.0 -6.0 1489.0 1095.0
Drax Group . . . . . . . . . .570.5 -3.5 581.5 443.1
SSE . . . . . . . . . . . . . . . .1332.0 8.0 1423.0 1193.0
Domino Printing S . . . .596.0 -4.0 701.5 434.3
Halma . . . . . . . . . . . . . .404.4 -1.5 429.6 306.3
Laird . . . . . . . . . . . . . . . .212.0 -4.4 222.0 128.5
Morgan Crucible C . . . . .332.8 1.4 360.0 224.0
Oxford Instrument . . . .1218.0 -7.0 1285.0 714.0
Renishaw . . . . . . . . . . .1457.0 2.0 1886.0 800.0
Spectris . . . . . . . . . . . .1902.0 0.0 1909.3 1039.0
Aberforth Smaller . . . .638.0 3.0 714.0 494.0
Alliance Trust . . . . . . . .360.0 -0.6 392.7 310.2
Bankers Inv Trust . . . . .414.8 -4.2 433.8 346.5
BH Global Ltd. GB . . . . .1181.0 -9.0 1212.0 1085.0
BH Global Ltd. US . . . . . . .11.8 -0.1 12.2 10.6
BH Macro Ltd. EUR . . . . . .19.4 -0.1 20.2 16.5
BH Macro Ltd. GBP . . .2038.0 -13.0 2078.0 1698.0
BH Macro Ltd. USD . . . . . .19.3 -0.2 20.2 16.4
BlackRock World M . . .659.0 -11.0 782.0 574.5
BlueCrest AllBlue . . . . . .160.5 0.0 176.2 160.3
British Assets Tr . . . . . . .124.7 -0.8 138.6 109.0
British Empire Se . . . . .420.0 0.7 533.0 404.0
Caledonia Investm . . .1405.0 -8.0 1800.0 1337.0
City of London In . . . . .295.2 -2.9 306.9 257.0
Dexion Absolute L . . . . .139.5 -0.3 149.4 130.0
Edinburgh Dragon . . . .242.0 0.0 253.1 201.4
Edinburgh Inv Tru . . . .494.4 -0.9 504.0 422.5
Electra Private E . . . . .1698.0 -5.0 1750.0 1287.0
Fidelity China Sp . . . . . .80.8 -1.0 109.8 70.0
Fidelity European . . . .1075.0 -3.0 1280.0 912.0
Foreign and Colon . . . .305.3 -0.2 327.9 261.5
Herald Inv Trust . . . . . . .513.0 -1.0 545.5 419.0
HICL Infrastructu . . . . . .120.0 -0.2 123.6 112.7
John Laing Infras . . . . .106.5 -0.3 110.6 103.8
JPMorgan American . . .918.0 1.5 965.5 721.5
JPMorgan Asian In . . . .195.3 -0.2 243.9 170.1
JPMorgan Emerging . .544.0 -4.0 610.5 480.1
JPMorgan Indian I . . . . .325.8 -4.2 437.0 313.1
JPMorgan Russian . . . .536.5 -7.5 689.0 415.1
LawDebenture Cor . . . .384.4 4.7 398.7 323.0
Mercantile Invest . . . .1024.0 -11.0 1114.0 823.0
Merchants Trust . . . . . .375.0 -2.0 431.8 341.5
Monks Inv Trust . . . . . .336.4 -0.4 361.2 298.1
Murray Income Tru . . . .651.0 -4.5 674.0 568.0
Murray Internatio . . . . .964.0 1.0 1012.0 818.5
NB Global Floatin . . . . . .100.1 -0.4 103.0 92.5
Perpetual Income . . . . .267.1 -0.4 276.0 236.5
Personal Assets T . . .34180.0 -70.0 35350.031750.0
Polar Capital Tec . . . . . .389.5 0.5 404.0 299.5
RIT Capital Partn . . . . . .1161.0 -2.0 1360.0 1141.0
Scottish Inv Trus . . . . . .479.7 3.4 524.0 417.0
Scottish Mortgage . . . .690.0 0.5 781.0 565.0
SVG Capital . . . . . . . . . .277.8 1.1 295.5 165.1
Temple Bar Inv Tr . . . . .929.0 -5.0 970.0 791.0
Templeton Emergin . . .570.0 1.0 678.5 497.0
TRProperty Inv T . . . . . .153.7 1.0 206.1 136.2
TRProperty Inv T . . . . . .64.8 0.2 94.0 59.8
Witan Inv Trust . . . . . . .477.4 1.2 533.0 401.5
3i Group . . . . . . . . . . . . .194.8 1.4 294.1 166.9
3i Infrastructure . . . . . . .124.8 0.8 128.0 115.6
Aberdeen Asset Ma . . .283.8 0.7 286.5 167.8
Ashmore Group . . . . . .380.0 -1.0 420.0 306.4
Brewin Dolphin Ho . . . .165.5 -1.5 177.0 113.7
Camellia . . . . . . . . . . .9845.0 45.0 10950.0 8800.0
Charles Taylor Co . . . . .140.0 5.3 160.0 115.6
City of London Gr . . . . . .72.0 0.0 88.0 61.3
City of London In . . . . .360.0 -5.0 440.0 304.3
Close Brothers Gr . . . . .745.5 -10.0 820.0 590.0
F&C Asset Managem . . .68.7 1.0 81.7 56.1
Hargreaves Lansdo . . . .532.0 2.5 641.0 402.5
Helphire Group . . . . . . . . .1.7 0.0 13.3 1.4
Henderson Group . . . . .115.8 0.0 163.7 95.1
Highway Capital . . . . . . .14.5 0.0 21.0 7.0
ICAP . . . . . . . . . . . . . . . .375.0 -1.5 515.0 311.6
IG Group Holdings . . . .468.2 0.3 502.5 393.6
Intermediate Capi . . . . .261.5 0.2 345.0 197.9
International Per . . . . .259.8 -4.6 388.8 148.5
International Pub . . . . . .117.6 -0.9 121.7 112.7
Investec . . . . . . . . . . . . .359.0 2.7 522.0 318.4
IP Group . . . . . . . . . . . . .142.0 -4.0 151.0 36.0
Jupiter Fund Mana . . . .228.6 1.0 310.5 184.9
Liontrust Asset M . . . . . .115.0 -0.5 125.0 57.9
LMS Capital . . . . . . . . . . .60.5 2.3 64.8 54.0
London Finance & . . . . .19.5 0.0 23.5 18.0
London Stock Exch . . .1053.0 8.0 1093.0 756.5
Lonrho . . . . . . . . . . . . . . .10.8 0.0 19.8 8.9
Man Group . . . . . . . . . . .93.5 -1.3 259.6 92.6
Paragon Group Of . . . . .176.5 -5.4 206.1 134.6
Provident Financi . . . .1204.0 4.0 1210.0 915.0
Rathbone Brothers . . .1345.0 -6.0 1351.0 977.0
Record . . . . . . . . . . . . . . .18.3 -0.1 35.5 9.8
RSM Tenon Group . . . . . . .6.8 -0.7 32.3 5.6
Schroders . . . . . . . . . . .1412.0 -9.0 1872.0 1183.0
Schroders (Non-Vo . . . .1112.0 -8.0 1521.0 970.0
Tullett Prebon . . . . . . . .340.6 -2.4 422.9 262.3
Walker Crips Grou . . . . . .45.5 0.0 51.5 40.0
BT Group . . . . . . . . . . . .215.9 2.4 232.1 161.0
Cable & Wireless . . . . . .32.9 -0.1 48.9 30.1
Cable & Wireless . . . . . .33.0 -0.9 55.0 14.2
COLT Group SA . . . . . . . .119.2 6.5 149.5 84.1
KCOM Group . . . . . . . . . .72.5 -0.8 84.0 60.5
TalkTalk Telecom . . . . .129.9 -0.1 150.0 118.9
TelecomPlus . . . . . . . .700.0 8.0 802.0 472.0
Booker Group . . . . . . . . .79.7 -0.2 85.3 60.0
Greggs . . . . . . . . . . . . .502.0 -3.0 558.0 445.0
Morrison (Wm) Sup . . .276.5 -3.5 328.0 275.3
Ocado Group . . . . . . . . . .123.1 0.2 233.0 52.9
Sainsbury (J) . . . . . . . . .307.8 -1.1 362.8 263.5
Tesco . . . . . . . . . . . . . . .318.2 0.2 420.1 310.5
Associated Britis . . . . .1242.0 14.0 1244.0 977.0
Cranswick . . . . . . . . . . .810.0 -1.0 841.0 588.5
Dairy Crest Group . . . . .303.7 0.2 409.7 290.4
Devro . . . . . . . . . . . . . . .306.1 -1.7 332.2 232.0
Tate & Lyle . . . . . . . . . . .713.5 14.5 720.5 544.5
Unilever . . . . . . . . . . . .2133.0 11.0 2189.0 1892.0
Mondi . . . . . . . . . . . . . .570.0 0.0 664.0 413.5
Centrica . . . . . . . . . . . . .308.6 -0.4 330.3 278.8
International Pow . . . . .417.4 -0.1 418.0 279.4
National Grid . . . . . . . .669.5 1.5 673.1 569.0
Pennon Group . . . . . . . .742.0 5.5 751.0 623.5
Severn Trent . . . . . . . .1670.0 3.0 1720.0 1375.0
United Utilities . . . . . .629.0 8.5 637.0 560.0
Cookson Group . . . . . . .709.0 2.5 747.5 395.8
Rexam. . . . . . . . . . . . . .432.6 0.1 438.0 299.8
RPC Group . . . . . . . . . . .373.8 1.3 393.2 300.5
Smith (DS) . . . . . . . . . . .163.9 -0.1 183.7 113.3
Smiths Group . . . . . . .1089.0 11.0 1255.0 869.5
Price Chg High Low
Reckitt Benckiser . . . .3614.0 11.0 3670.0 3100.0
Redrow . . . . . . . . . . . . .123.5 -1.0 126.0 90.2
Taylor Wimpey . . . . . . . .51.7 -0.3 52.8 28.7
Bodycote . . . . . . . . . . . .428.7 -4.2 437.6 225.6
Fenner . . . . . . . . . . . . . .434.2 -13.4 483.7 280.0
IMI . . . . . . . . . . . . . . . . .980.5 4.0 1119.0 636.5
Melrose . . . . . . . . . . . . .437.8 -2.1 442.9 268.0
Northgate . . . . . . . . . . .205.6 5.6 341.8 190.0
Rotork . . . . . . . . . . . . .2260.0 2.0 2274.0 1501.0
Spirax-Sarco Engi . . . .2325.0 16.0 2334.0 1649.0
Weir Group . . . . . . . . . .1616.0 -64.0 2236.0 1375.0
Evraz . . . . . . . . . . . . . . .360.6 -6.3 460.5 315.0
Ferrexpo . . . . . . . . . . . .285.5 -4.3 495.3 238.7
Talvivaara Mining . . . . .168.2 -9.6 525.0 167.8
BBA Aviation . . . . . . . .202.6 2.5 223.4 156.0
Stobart Group Ltd . . . . .126.3 -0.2 149.5 112.0
Admiral Group . . . . . . .1177.0 3.0 1754.0 787.0
Amlin . . . . . . . . . . . . . .336.0 2.9 427.0 270.6
Beazley . . . . . . . . . . . . . .141.4 -0.5 151.8 109.6
Catlin Group Ltd. . . . . . .425.0 1.7 449.0 337.0
Hiscox Ltd. . . . . . . . . . . .398.7 -5.0 424.7 340.5
ITV . . . . . . . . . . . . . . . . . .85.6 1.2 89.9 51.7
Johnston Press . . . . . . . . .5.9 0.1 8.0 4.1
MecomGroup . . . . . . . .162.3 3.8 293.5 134.5
Moneysupermarket. . . .134.7 -1.2 136.8 93.4
Pearson . . . . . . . . . . . .1166.0 5.0 1255.0 1038.0
PerformGroup . . . . . . .313.4 13.4 320.3 150.0
Reed Elsevier . . . . . . . .523.5 8.0 578.0 461.3
Rightmove . . . . . . . . .1600.0 21.0 1607.1 1036.0
STV Group . . . . . . . . . . . .112.5 0.3 163.0 76.3
Tarsus Group . . . . . . . . .154.9 2.9 165.0 119.5
Trinity Mirror . . . . . . . . . .32.3 -0.3 54.3 30.8
UBM . . . . . . . . . . . . . . .600.5 4.0 641.5 416.0
UTVMedia . . . . . . . . . . .141.0 -4.5 159.5 92.5
Wilmington Group . . . . .97.0 -1.0 151.0 78.5
WPP . . . . . . . . . . . . . . . .847.5 7.0 880.0 578.0
Yell Group . . . . . . . . . . . . .3.6 0.1 11.0 3.4
African Barrick G . . . . . .358.5 1.9 616.5 351.2
Anglo American . . . . .2365.0 -10.0 3181.0 2138.5
Anglo Pacic Gro . . . . .305.0 -2.0 340.0 237.9
Antofagasta . . . . . . . . .1108.0 -51.0 1491.0 900.5
Aquarius Platinum . . . .129.5 -2.0 360.0 128.1
Avocet Mining . . . . . . . .161.0 -8.5 286.8 159.6
BHP Billiton . . . . . . . . .1996.0 -21.5 2521.5 1667.0
Bumi . . . . . . . . . . . . . . .545.0 6.5 1158.0 496.0
Centamin (DI) . . . . . . . . .67.6 -0.3 141.5 63.1
Jardine Lloyd Tho . . . . .703.5 -3.5 764.5 576.0
Lancashire Holdin . . . . .825.0 2.5 827.0 618.5
RSA Insurance Gro . . . . .105.1 -0.3 139.8 99.6
Aviva . . . . . . . . . . . . . . . .311.3 0.2 447.1 275.3
Legal & General G . . . . .118.0 -3.8 135.0 89.8
Old Mutual . . . . . . . . . . .150.3 2.1 188.1 112.1
Phoenix Group Hol . . . .523.0 -2.5 688.0 451.1
Prudential . . . . . . . . . . .747.5 -9.5 797.5 509.0
Resolution Ltd. . . . . . . .222.7 -1.2 316.1 220.6
St James's Place . . . . . .332.0 2.0 376.0 294.0
Standard Life . . . . . . . . .219.7 -4.5 250.7 172.0
4Imprint Group . . . . . . .285.0 12.0 312.5 200.0
Aegis Group . . . . . . . . . .177.2 -0.8 187.4 115.7
Bloomsbury Publis . . . .108.0 2.0 138.0 91.3
British Sky Broad . . . . .704.0 2.5 850.0 618.5
Centaur Media . . . . . . . . .33.3 0.8 56.3 30.5
Chime Communicati . . .203.3 -2.8 298.5 163.0
Creston . . . . . . . . . . . . . .61.0 0.0 121.0 47.0
Daily Mail and Ge . . . . .420.5 4.0 505.5 343.4
Euromoney Institu . . . .804.0 -24.0 828.0 522.5
Future . . . . . . . . . . . . . . . .11.3 0.0 19.5 8.3
Haynes Publishing . . . .190.0 0.0 255.0 190.0
Huntsworth . . . . . . . . . .44.3 -1.3 76.3 32.3
Informa . . . . . . . . . . . . .419.9 4.9 451.0 313.9
ITE Group . . . . . . . . . . . .225.4 -3.5 255.3 157.7
Eurasian Natural . . . . .553.0 -7.0 882.5 522.0
Fresnillo . . . . . . . . . . . .1561.0 -8.0 2150.0 1302.0
GemDiamonds Ltd. . . .256.1 10.0 310.6 179.8
Glencore Internat . . . . .426.4 0.8 531.1 348.0
Hochschild Mining . . . . .477.7 -2.2 580.0 365.9
Kazakhmys . . . . . . . . . .825.0 -25.0 1405.0 730.0
Kenmare Resources . . . .50.4 -1.1 61.5 31.0
Lonmin . . . . . . . . . . . .1043.0 -10.0 1601.0 941.0
NewWorld Resourc . . .399.2 -1.6 1060.0 396.3
Petra Diamonds Lt . . . .148.4 -2.9 188.2 97.0
Petropavlovsk . . . . . . . .453.8 -8.4 913.0 451.5
Polymetal Interna . . . .905.0 -8.0 1175.0 877.0
Randgold Resource . .5150.0-200.0 7565.0 4580.0
Rio Tinto . . . . . . . . . . .3363.0 -76.0 4595.0 2712.5
Vedanta Resources . . .1180.0 -26.0 2220.0 928.0
Xstrata . . . . . . . . . . . . .1168.0 -1.0 1448.0 764.0
Inmarsat . . . . . . . . . . . .457.8 15.7 620.0 389.3
Vodafone Group . . . . . .173.0 1.0 182.7 155.1
Genesis Emerging . . . .506.5 3.0 543.5 424.0
Afren . . . . . . . . . . . . . . .133.7 -1.4 171.0 73.6
BG Group . . . . . . . . . . .1424.5 -26.5 1547.0 1144.0
BP . . . . . . . . . . . . . . . . .435.7 1.9 504.6 363.2
Cairn Energy . . . . . . . . .342.0 1.7 501.4 291.9
EnQuest . . . . . . . . . . . . .132.1 4.5 136.8 85.7
Essar Energy . . . . . . . . .145.1 -2.3 455.9 101.6
Exillon Energy . . . . . . . .135.4 -6.2 460.0 123.0
Heritage Oil . . . . . . . . . .148.0 -3.6 262.1 133.1
Ophir Energy . . . . . . . .569.0 2.0 587.0 184.5
Premier Oil . . . . . . . . . .374.4 -6.0 485.0 310.0
Royal Dutch Shell . . . .2184.5 8.5 2402.0 1883.5
Royal Dutch Shell . . . .2261.0 8.5 2489.0 1890.5
Ruspetro . . . . . . . . . . . .192.0 5.0 230.0 125.0
Salamander Energy . . .208.0 0.3 235.8 148.0
Soco Internationa . . . .290.0 -4.1 397.5 278.0
TullowOil . . . . . . . . . . .1557.0 12.0 1601.0 945.5
Amec . . . . . . . . . . . . . .1130.0 2.0 1207.0 740.5
Hunting . . . . . . . . . . . . .926.5 -9.5 968.0 530.0
Kentz Corporation . . . .425.6 -9.0 508.0 375.0
Lamprell . . . . . . . . . . . .364.9 -1.8 395.2 220.7
Petrofac Ltd. . . . . . . . .1764.0 4.0 1772.0 1108.0
Wood Group (John) . . .798.0 9.0 803.0 469.9
Burberry Group . . . . . .1536.0 21.0 1600.0 1092.0
PZ Cussons . . . . . . . . . .343.5 1.4 387.9 285.0
Supergroup . . . . . . . . . .330.9 -7.1 1600.0 324.6
AstraZeneca . . . . . . . . .2727.5 24.5 3194.0 2543.5
BTG . . . . . . . . . . . . . . . . .387.7 7.9 389.7 236.8
Genus . . . . . . . . . . . . .1426.0 -31.0 1457.0 853.5
GlaxoSmithKline . . . . .1446.0 13.5 1497.0 1205.0
Hikma Pharmaceuti . . .637.5 -0.5 869.0 555.5
Shire Plc . . . . . . . . . . .2039.0 12.0 2300.0 1818.0
Capital & Countie . . . . .200.0 1.5 203.7 158.1
Daejan Holdings . . . . .3116.0 -93.0 3300.0 2282.0
F&C Commercial Pr . . . . .103.1 -0.6 108.0 92.6
Grainger . . . . . . . . . . . . . .98.1 -0.6 133.2 77.3
London & Stamford . . . .111.0 0.0 140.0 103.9
Savills . . . . . . . . . . . . . .372.0 3.7 427.1 256.2
UK Commercial Pro . . . . .71.5 -0.7 85.5 65.1
Big Yellow Group . . . . .299.7 2.4 344.4 218.0
British LandCo . . . . . . .499.7 2.7 629.5 444.0
Capital Shopping . . . . .323.5 -2.4 408.6 288.7
Derwent London . . . . .1776.0 5.0 1880.0 1400.0
Great Portland Es . . . . .378.4 5.4 445.0 312.9
Hammerson . . . . . . . . .420.7 -0.2 490.9 345.2
Hansteen Holdings . . . . .73.0 -1.0 89.5 68.0
Land Securities G . . . . .742.5 5.5 885.0 612.0
SEGRO . . . . . . . . . . . . . .222.3 0.0 326.1 195.0
Shaftesbury . . . . . . . . .523.5 2.0 539.0 441.2
Aveva Group . . . . . . . .1664.0 -36.0 1799.0 1298.0
Computacenter . . . . . . .413.5 -1.5 490.0 324.7
Fidessa Group . . . . . . .1564.0 14.0 2109.0 1444.0
Invensys . . . . . . . . . . . .216.0 3.4 333.9 180.9
Logica . . . . . . . . . . . . . . .77.7 0.8 144.8 59.0
Micro Focus Inter . . . . .468.3 0.4 476.7 242.9
Misys . . . . . . . . . . . . . . .349.0 0.1 420.2 214.9
Sage Group . . . . . . . . . .289.6 1.5 312.4 231.7
SDL . . . . . . . . . . . . . . . . .721.0 -6.0 756.0 586.0
Telecity Group . . . . . . . .816.0 7.5 825.0 450.5
Aggreko . . . . . . . . . . .2278.0 8.0 2316.0 1522.0
Ashtead Group . . . . . . .249.5 -1.1 271.1 99.4
Atkins (WS) . . . . . . . . . .740.5 15.5 820.0 490.2
Babcock Internati . . . . .844.5 15.5 851.0 570.5
Berendsen . . . . . . . . . . .517.0 -7.5 568.0 402.7
Bunzl . . . . . . . . . . . . . .1063.0 16.0 1070.0 676.5
Cape . . . . . . . . . . . . . . .405.7 -7.9 591.5 295.0
Capita . . . . . . . . . . . . . .674.5 -2.5 767.0 611.5
Carillion . . . . . . . . . . . .300.0 4.0 403.2 264.6
De La Rue . . . . . . . . . . .988.5 -7.5 1001.0 730.0
Diploma . . . . . . . . . . . .458.0 -2.0 460.5 284.0
Electrocomponents . . .234.4 1.4 294.9 182.2
Experian . . . . . . . . . . . .995.0 -2.5 1004.0 665.0
Filtrona PLC . . . . . . . . . .483.1 4.0 484.5 296.3
G4S . . . . . . . . . . . . . . . .280.4 -0.7 292.1 219.9
Hays . . . . . . . . . . . . . . . . .91.0 -0.1 117.9 58.9
Homeserve . . . . . . . . . .251.0 0.3 532.0 214.7
Howden Joinery Gr . . . .119.7 -1.3 130.8 93.1
Interserve . . . . . . . . . . .289.3 0.9 341.3 270.1
Intertek Group . . . . . .2532.0 -18.0 2605.0 1744.0
Michael Page Inte . . . .406.9 -3.1 552.5 323.0
Mitie Group . . . . . . . . . .296.4 0.5 296.8 206.8
PayPoint . . . . . . . . . . . .648.0 1.5 670.0 450.0
Premier Farnell . . . . . . .208.5 -7.2 301.0 144.5
Regus . . . . . . . . . . . . . . .108.5 -1.3 117.5 64.0
Rentokil Initial . . . . . . . .86.6 -0.8 100.9 58.2
RPS Group . . . . . . . . . . .237.3 -2.1 253.0 156.6
Serco Group . . . . . . . . .560.0 6.0 597.5 458.0
Shanks Group . . . . . . . . .93.1 -0.2 130.9 90.8
SIG . . . . . . . . . . . . . . . . . .102.1 -1.2 153.5 77.0
Travis Perkins . . . . . . .1043.0 2.0 1125.0 715.0
Wolseley . . . . . . . . . . .2390.0 -25.0 2558.0 1404.0
ARM Holdings . . . . . . . .514.0 -1.5 645.0 464.0
CSR . . . . . . . . . . . . . . . . .236.1 0.8 391.4 154.1
Imagination Techn . . . .661.5 16.5 717.0 296.9
Spirent Communica . . .174.0 2.1 176.0 105.8
British American . . . .3230.5 42.5 3248.5 2592.0
Imperial Tobacco . . . .2591.0 57.0 2597.0 1974.0
Betfair Group . . . . . . . .839.5 45.0 901.0 567.0
Bwin.party Digita . . . . . .156.1 5.7 174.0 100.6
Carnival . . . . . . . . . . . .2018.0 -11.0 2642.0 1742.0
Compass Group . . . . . . .651.0 -7.5 671.0 512.5
Domino's Pizza UK . . . .440.0 -4.0 526.0 377.0
easyJet . . . . . . . . . . . . .519.0 1.5 521.5 302.5
FirstGroup . . . . . . . . . . .199.4 2.6 370.2 190.0
Go-Ahead Group . . . . .1135.0 2.0 1598.0 1125.0
Greene King . . . . . . . . .526.0 -1.5 531.5 410.0
InterContinental . . . . .1532.0 16.0 1544.0 955.0
International Con . . . . . .177.8 -1.0 258.7 132.0
Ladbrokes . . . . . . . . . . . .181.4 1.2 182.5 114.0
Marston's . . . . . . . . . . . .98.0 -0.6 112.0 84.6
Millennium& Copt . . . .502.0 9.3 535.0 371.2
Mitchells & Butle . . . . . .265.7 -0.4 336.8 215.6
National Express . . . . .226.5 4.8 270.2 201.6
Rank Group . . . . . . . . . .114.9 -6.1 153.7 109.5
Restaurant Group . . . . .286.9 -2.2 329.0 254.9
Spirit Pub Compan . . . . .58.3 -1.5 62.8 35.3
Stagecoach Group . . . . .254.1 1.6 287.4 220.0
TUI Travel . . . . . . . . . . . .195.9 0.9 250.0 136.7
Wetherspoon (J.D. . . . .400.0 -8.5 468.3 380.5
Whitbread . . . . . . . . .2006.0 33.0 2008.0 1409.0
WilliamHill . . . . . . . . . .280.6 6.1 281.7 183.3
Abcam . . . . . . . . . . . . . .374.3 2.3 460.0 320.0
Advanced Medical . . . . .74.0 -1.8 95.0 64.8
Albemarle & Bond . . . .324.0 -0.5 400.1 302.5
Amerisur Resource . . . . .24.8 -0.8 29.0 9.5
Andes Energia . . . . . . . .39.5 0.0 82.8 17.5
Andor Technology . . . .550.0 -3.0 685.0 471.8
Archipelago Resou . . . . .62.0 2.5 79.0 56.5
ASOS . . . . . . . . . . . . . .1440.0 -40.0 2468.0 1142.0
Aurelian Oil & Ga . . . . . . .21.0 -0.8 71.0 16.0
Avanti Communicat . . .320.0 26.3 450.0 241.3
Blinkx . . . . . . . . . . . . . . . .51.8 -3.0 158.0 41.3
Borders & Souther . . . . .88.0 -1.5 131.0 43.5
BowLeven . . . . . . . . . . . .89.0 -0.5 342.3 62.0
Brooks Macdonald . . .1347.5 -17.5 1372.5 940.0
Cluf Gold . . . . . . . . . . . .83.0 -2.0 112.8 66.5
Cove Energy . . . . . . . . .224.5 -0.5 242.0 61.0
Daisy Group . . . . . . . . .106.6 0.0 127.0 95.0
EMIS Group . . . . . . . . . .545.0 -5.0 583.0 397.5
Faroe Petroleum . . . . . .177.0 1.3 177.8 130.0
Gulfsands Petrole . . . . .126.0 -3.3 287.0 125.0
GWPharmaceutical . . . .88.0 -3.0 130.0 78.5
H&T Group . . . . . . . . . . .287.0 -3.5 395.0 286.0
Hargreaves Servic . . . .1215.0 5.0 1264.0 855.0
Healthcare Locums . . . . . .2.6 0.2 2.7 2.3
ImpellamGroup . . . . . .357.0 -0.5 382.6 225.0
Iomart Group . . . . . . . . .137.8 -2.3 151.0 85.5
James Halstead . . . . . .525.0 13.0 535.0 410.3
London Mining . . . . . . .291.5 -9.5 427.0 257.5
Lupus Capital . . . . . . . . .129.0 -4.0 140.0 86.0
M. P. Evans Group . . . . .525.0 24.0 525.0 371.0
Majestic Wine . . . . . . . .475.3 -1.8 510.0 315.0
May Gurney Integr . . . .235.0 -1.4 302.0 230.0
Monitise . . . . . . . . . . . . .35.8 0.5 40.0 24.0
Mulberry Group . . . . .2472.0 55.0 2500.0 1290.0
Nanoco Group . . . . . . . .69.0 -0.5 90.0 38.0
Nautical Petroleu . . . . .342.0 2.0 379.0 223.5
Nichols . . . . . . . . . . . . .730.5 13.8 730.5 505.0
Numis Corporation . . . . .87.3 -2.8 119.6 72.0
Pan African Resou . . . . . .15.8 -0.3 18.3 9.5
Patagonia Gold . . . . . . . .35.8 -1.0 70.0 34.0
Prezzo . . . . . . . . . . . . . . .69.0 0.0 71.5 53.5
Rockhopper Explor . . . .339.8 0.3 393.5 141.0
RWS Holdings . . . . . . . .520.3 -5.0 560.0 389.0
Secure Trust Bank . . . .1060.0 0.0 1077.5 755.0
Sirius Minerals . . . . . . . . .17.8 -1.3 32.0 6.4
Songbird Estates . . . . . .120.0 0.0 160.3 103.0
Valiant Petroleum . . . .558.0 -17.5 628.5 400.0
Young & Co's Brew . . . .615.5 -1.3 712.0 580.0
COLT Group SA . . . . . . . . . . . . . . .119.2 5.8
Betfair Group . . . . . . . . . . . . . . .839.5 5.7
PerformGroup . . . . . . . . . . . . . .313.4 4.5
GemDiamonds Ltd. . . . . . . . . . .256.1 4.1
Dixons Retail . . . . . . . . . . . . . . . .18.8 4.0
Smith & Nephew . . . . . . . . . . . .629.5 4.0
Bwin.party Digital . . . . . . . . . . . .156.1 3.8
Inmarsat . . . . . . . . . . . . . . . . . . .457.8 3.6
EnQuest . . . . . . . . . . . . . . . . . . . .132.1 3.5
Northgate . . . . . . . . . . . . . . . . . .205.6 2.8
Talvivaara Mining . . . . . . . . . . .168.2 -5.4
Rank Group . . . . . . . . . . . . . . . . .114.9 -5.0
Avocet Mining . . . . . . . . . . . . . . .161.0 -5.0
Home Retail Group . . . . . . . . . . .83.4 -4.8
Antofagasta . . . . . . . . . . . . . . .1108.0 -4.4
Exillon Energy . . . . . . . . . . . . . . .135.4 -4.4
Weir Group . . . . . . . . . . . . . . . .1616.0 -3.8
Randgold Resources . . . . . . . .5150.0 -3.7
Premier Farnell . . . . . . . . . . . . .208.5 -3.3
Legal & General Gr . . . . . . . . . . .118.0 -3.1
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
http://corporate.webfg.com
mailto:
globaltechsales@webfg.com
Tsy 9.000 12 . . . . . . .102.19 0.00 110.2 100.8
Tsy 5.250 12 . . . . . . .100.44 -0.02 104.9 100.4
Tsy 2.500 13 . . . . . . .283.75 -0.02 287.7 282.8
Tsy 4.500 13 . . . . . . .103.44 -0.02 106.4 103.4
Tsy 8.000 13 . . . . . . .110.63 -0.02 116.4 110.5
Tsy 5.000 14 . . . . . . .110.65 -0.01 112.9 110.4
Tsy 8.000 15 . . . . . . .126.19 -0.02 129.2 125.4
Tsy 4.750 15 . . . . . . .113.65 -0.01 115.4 110.8
Tsy 4.000 16 . . . . . . .113.20 0.01 114.7 107.7
Tsy 2.500 16 . . . . . .343.58 -0.05 345.7 323.8
Tsy 1.250 17 . . . . . . . .115.76 -0.09 117.1 109.9
Tsy 8.750 17 . . . . . . .139.40 -0.28 141.9 135.6
Tsy 12.000 17 . . . . . .118.50 0.00 127.9 117.0
Tsy 5.000 18 . . . . . . .121.29 0.00 122.5 113.2
Tsy 4.500 19 . . . . . .120.03 0.00 120.9 109.3
Tsy 3.750 19 . . . . . . .115.26 0.00 115.9 103.4
Tsy 4.750 20 . . . . . . .122.81 -0.02 123.5 110.7
Tsy 2.50020 . . . . . .366.76 -0.10 369.3 330.6
Tsy 8.000 21 . . . . . . .151.57 0.02 154.1 138.8
Tsy 1.875 22 . . . . . . .127.36 -0.10 129.2 114.9
Tsy 4.000 22 . . . . . . .117.38 0.04 118.2 103.2
Tsy 2.500 24 . . . . . .330.27 -0.09 334.7 288.9
Tsy 5.000 25 . . . . . .128.79 0.07 130.6 111.5
Tsy 1.250 27 . . . . . . .122.80 -0.19 127.0 107.6
Tsy 4.250 27 . . . . . . .119.82 0.02 122.7 101.7
Tsy 6.000 28 . . . . . .144.14 0.01 148.0 123.7
Tsy 4.125 30 . . . . . . .311.54 -0.22 322.8 272.0
Tsy 4.750 30 . . . . . . .126.10 -0.03 130.5 107.3
Tsy 4.250 32 . . . . . . .118.29 -0.04 123.1 100.3
Tsy 4.250 36 . . . . . . .117.74 -0.11 123.9 99.6
Tsy 4.750 38 . . . . . . .127.07 -0.12 134.2 107.9
Tsy 4.500 42 . . . . . . .123.11 -0.21 130.8 104.1
% %
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TUESDAY 15 MAY 2012
30
cityam.com
LOSING YOUR HAIR?
IT CAN BE RESTORED!
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Y
OU can have all the makeup you want: Ill take
mascara, thank you. Nows the perfect time to invest
in a lash maximiser that will stay on in a downpour,
also providing massive volume, thickness and
stickability. Heres our pick of the best. Zoe Strimpel
Mascara to keep you
floating on through
springs rainiest days
The Empress takes a
and ends up with a
S
omewhere along the line, gentrifica-
tion became a contentious topic. It
tends to mean rapidly climbing prop-
erty prices and lots of nice new coffee
shops filled with prams that smell of Ribena
and baby vomit. Whether or not the person
sitting next to you at a dinner party thinks
this is a good thing is a pretty good yard-
stick for working out their political alle-
giance (yes: free market, chances are theyre
a Tory; no: government intervention, proba-
bly votes Labour. You wouldnt be sitting
next to a Lib Dem, theyre an endangered
species).
Hackney, especially, is in the process of
being well and truly gentrified, the middle
classes moving in en mass and dressing it in
brogues and a tweed jacket. It wasnt always
so: in the early 20th century, it was an
industrial hub the word petrol was
apparently coined by a company based
there and factory workers flocked to its
overcrowded slum housing. After the war,
the industry moved further out, leaving it
with scrap-dealers, car breakers and lots of
empty warehouses. Its inhabitants will have
eaten things like pigs ears, trotters and
bone marrow thats what poor people ate,
because it was cheap and it didnt involve
throwing away half a dead animal.
But flash forward 60 years and youll find
it isnt only places that are being gentrified:
the peripheral bits of a pigs anatomy, parts
that a starving vagrant would once have
turned his nose up at, are now the height of
sophistication. Trotters are in. So are pigs
ears (which is a risky strategy for a restau-
rant: the headlines write themselves). Its
nothing new, of course: oysters used to be
used to pad out meat pies until some clever
marketing exec thought of a better strategy.
All of which brings us nicely to The
Empress, the reopened gastropub on a street
in Hackney that is no stranger to yummy-
RESTAURANT
THE EMPRESS
130 Lauriston Road, Hackney, E9 7LH
FOOD hhhhi
SERVICE hhhii
ATMOSPHERE hhhii
Cost per person without wine: 25
By Steve Dinneen
Create a bloody good cocktail
Shaking the perfect Bloody Mary just got easier with the launch
of Belvedere Bloody Mary Vodka. The vodka boasts dramatic
notes of black pepper, horseradish and celery with notes of fresh
bell pepper and capsicum. To try it, head to brasserie Randall &
Aubin at 16 Brewer Street, Soho, over the next two weekends for
a special selection of cocktails.
Grab a Tortilla next time youre in Wimbledon
Posh Mexican take-away Tortilla has continued its expansion with
a new branch on Wimbledons The Broadway. The grill specialist
now has stores in eight locations across the capital, including
Leadenhall Market, Canary Wharf and Southwark. If freshly pre-
pared burritos and fajitas are your thing, this is the place for you.
Go to tortilla.co.uk for more information.
FOOD & BOOZE NEWS
WHERE TO EAT AND DRINK IT
The Empress looks
somewhere
between a New
York loft and a
Victorian primary
school; inset: bone
marrow and
succulent snails
mummies and artisan fairy cakes. It is typi-
cal of the nouveau East End, its dcor plac-
ing it somewhere between a New York loft
and a Victorian primary school. Dogs catch-
ing Frisbees are painted on the walls. Jesus is
break-dancing in the corner. It is populated
with exactly the kind of people you would
expect to find here; all studiously dorky
jumpers and the ruddy cheeks of the peren-
nially well fed.
The Empress which dropped the of
India from its name after its recent over-
haul brought in Elliott Lidstone, former
head chef of the Michelin starred Lortolan
in Berkshire, to run the kitchen. And, for the
prices its charging, hes done very well.
The pigs ears are a bit of a gimmick con-
sisting mostly of fried fat, which is just as
well, really, as theyd have been completely
inedible otherwise. The snails and bone mar-
row, though, were delicious; succulent and
well cooked better than Ive been served in
restaurants in France.
There is something quite undignified
Exaggerated lashes
mascara by
Yves Saint Laurent
YSL is one of the daddies of
the mascara department.
Always good for volume and
separation, this is one of the
best. 15-23 at
Debenhams
Lash Genius by
Anastasia Beverly Hills
The ultimate waterproof
mascara: weep your heart
out, go for a swim, get
caught in a flood itll
stay. 14,
cultbeauty.co.uk.
Faux Cils Mascara
Longest Lash by Chantecaille
Probably the most expensive
mascara on the market, this high-
performance brew is a mixture of
natural waxes with a creamy,
buildable texture that curls and
thickens like none other. At this
price, youd hope so. 60,
spacenk.com
Hypnose Doll Eyes
by Lancome
If you can forgive the
name, this Hypnose
edition gives massive
curl and volume. 21, at
Debenhams
Fiberwig LX by
d.j.v Beautenizer
This one sounded a bit
random to us at first, too.
But its awesome, thanks
to a hi-tech fusion of
brush-on, false-lash
filaments and a
hypoallergenic, liquid-to-
film lash coating. Leaves
you with massively big,
black lashes. 18,
cultbeauty.co.uk
Mascara
by Ellis Faas
Chic and creamy, with a
thick and versatile
brush, this trendy
mascara feels relatively
silky and creates good
volume. 20,
spacenk.com
TUESDAY 15 MAY 2012
- Sweetings -
Why a 19th century seafood instituation is still the citys no.1
- Sweetings -
y seafood institua Why a 19th centur
- Sweetings -
tion is still the afood instituaat
- Sweetings -
.1 s no tion is still the city
31
LIFE&STYLE
sows ear
silk purse
Relax in style at the Zurich food festival
Foodies planning on taking in the Il Tavolo Zurich food festival
can take advantage of a deal by by The Dolder Grand hotel,
offering accommodation, breakfast and dinner in two Michelin
starred The Restaurant for 413 per person per night. Il Tavolo
takes place from 27 June to 1 July. For more information go to
www.il-tavolo.ch and www.thedoldergrand.com.
Drink Champagne all night long at Umu
If you crave long nights sipping nothing but the finest
Champagne, head over to Michelin starred Japanese restaurant
Umu, where executive chef Yoshinori Ishii has created 10 dishes to
be sampled and matched with Laurent-Perrier Ultra Brut. The spe-
cial Champagne menu, priced at 250 for two people, includes
sushi, foie gras and scallops. To book, call Umu on 020 7499 8881.
about the sight of a whole, roasted quail, in
this case sitting atop a bed of leaves, its
charred legs all akimbo, pointing sadly
towards the ceiling. If you order it as a main,
youll find two of them, legs intertwined in a
final embrace, like the preserved victims of
Mount Vesuvius you can see in Pompeii. It
was served bloody as hell but provided
youre not squeamish there was some suc-
culent meat to tweezer from the carcass. The
mackerel salad was less evocative but very
tasty nonetheless.
The cheesecake was a high point, rounding
off a meal that was a bit hit and miss but cer-
tainly never dull. And, whilst Hackney may
be getting gentrified, at 25 a person (with-
out wine), the Empress is still firmly rooted at
the affordable end of the scale.
Its probably not quite worth navigating
the circuitous network of public transport
it takes to get to Hackney, but if youre in
the area, pop in and order some pigs ears
while you chew over the absurd circularity
of it all.
OLD
FASHIONED
PHILIP SALTER
The return of the Old
Fashioned is proof of
a cocktail renaissance
F
ADS in cocktails come and go, but with each movement
something of the best is kept, or later rediscovered.
Quality endures. And thankfully were drinking through
something of a renaissance, with no resurgence as wel-
come as that of the Old Fashioned.
The Old Fashioned represents everything thats good and
true. Its name derives from around the 1870s, with cocktail
aficionados of their day literally demanding from their bar-
tender something old fashioned. They were eschewing the
messy concoctions that were then passing for cocktails. The
base liquor varied, but the essence was the same: a balanced
drink, which works with the dominant alcohol, instead of try-
ing to drown it in a chaos of sensory confusion.
But a century later we were back in iniquity. It has been
slowly saved from its 1970s fall, when bartenders flair
made a muddled a fabrication of this previously noble
drink. A cornucopia of sliced, diced and muddle fruit had
infiltrated it beyond comprehension. Thankfully, the cock-
tail is once more liberated, with the heroic sombre simplic-
ity echoing that base call for simplicity and balance. Most
modern additions are playful failures, rather than outright
heretical.
The key thing to know is that it takes a long time to make
a decent Old Fashioned. If you arent waiting minutes at the
bar for it, you arent getting a good cocktail. The alternative is
to make it at home and there is something undeniably cathar-
tic about the process of mixing it. It might be one of the hard-
est drinks to perfect, but there is plenty of entertainment to
be had in the process of getting it just right.
INGREDIENTS
n50ml bourbon whiskey n10ml sugar syrup
n A dash of Angostura bitters
n A dash of orange bitters
GARNISH
n Strip of orange skin (without pith)
METHOD
n Stir sugar syrup and bitters with three or four cubes of ice for
about a minute
n Add 25ml of bourbon and three more ice cubes and stir for a
couple of minutes
n Again, add 25ml bourbon, three more ice cubes and stir
again for two minutes
nTwist the orange skin over the drink and place in glass to garnish
HOW TO SHAKE IT
A
mid the Prets, Pods and Itsus
of Mansion House, Sweetings
stands apart in a private
glow of its own, its large
windows offering views of
starched white tablecloths, fresh
seafood piled on plates ripe for
selection and wine glasses full of
cold white wine. Though its one of
the Citys oldest restaurants its
been in operation on the present
site since 1889 Sweetings is more
of a hidden gem than a hotspot,
attracting a smartly suited City
crowd who would rather it stayed
that way.
What makes it special? The per-
sonal touch, for one. The maitred,
Angelo Rojo, famously greets his
regulars by name Sweetings is
more like a friendly club than a
restaurant. The restaurant does
things its own way: it doesnt take
reservations, and its only open
between 11:30 and 3pm, Monday to
Friday. Staff are known for their
loyalty most of them are devotees
who wouldnt work anywhere else,
and know the equally-loyal clien-
tele well. Its a spot of history and a
dollop of nostalgia for those who
miss or merely fancy the idea of
the old Square Mile of bowler hats
and punchy Chablis lunches.
Like the rest of the place, the
food has preserved its original
character, but works beautifully
even today St John chef Fergus
Henderson has put Sweetings
among his top picks in London for
seafood. The menu offers stolidly
old-fashioned English classics,
done just right. Think oysters, pot-
ted shrimp, followed fish of the day
fried or poached chips and peas
are the sides; nothing fancy. Its
said parents used to take their kids
to Sweetings before dropping them
off at boarding school certainly,
puddings like crumble, spotted
dick and steamed puddings are
reminiscent of the high spots in a
schoolboys diet and hit the spot to
this day, whatever your age.
For the next month City A.M. and Brewin Dolphin will be shining a spotlight
on a series of City Treasures as we celebrate some of the great places and
institutions around us. Many of them are established with a long
and interesting heritage yet they still exude their core values
based on service and excellence.
Tomorrow is the Cutty Sark.
www.brewin.co.uk
Angelo Rojo, the matre d' of Sweetings, greets many customers by name
L
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KAKURO
QUICK CROSSWORD
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The nine-letter word was
LAYPERSON
1 Declaration (9)
8 Group of many
insects (5)
9 Areas of grass
found in gardens (5)
10 Umberto ___,
author of The Name
of the Rose (3)
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position (5)
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aggressiveness (5)
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18 Contagious viral
disease (5)
20 Kimono sash (3)
21 Country, capital
Beijing (5)
22 Argentinian football
manager, ___
Maradona (5)
23 Perform several jobs
at the same time (9)
2 Disreputable
wanderer (5)
3 Equipment that
measures periods (5)
4 Fruit with sweet,
juicy esh (5)
5 More recent (5)
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doubt (9)
7 A movement
upward (9)
12 Former name
of the Japanese
capital Tokyo (3)
14 ___ de cologne,
perfume (3)
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form (5)
17 Cook with dry heat (5)
18 Location of something
surrounded by
other things (5)
19 Encounters (5)
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
TUESD Y 15 M Y 2012
SILK
BBC1, 9PM
Martha defends a gangster
accused of a vicious attack, a
seemingly hopeless case as he made a
confession to the police.
DIRTY BRITAIN
ITV1, 9PM
Men and women who clean up after
the nation reveal the unpleasant
aspects of their work, providing an
insight into modern British life.
CSI: CRIME SCENE
INVESTIGATION CHANNEL5, 9PM
Murder strikes close to home for
Dr Robbins when his wife Judy
reports she has discovered a dead
man in her bed.
TVPICK
S
INCE saddling High Chaparral to
win the 2002 Derby, Aidan
OBrien has had 39 unsuccessful
attempts at landing flat racings
biggest prize and has got used to
leaving Epsom somewhat humbled in
recent years. However, the master of
Ballydoyle has, in the shape of recent
2000 Guineas winner Camelot, a
horse talented enough to end a
decade of drought.
The Investec Derby is just
two weeks away on
Saturday and OBrien
recalls the moment
the Coolmore boys
saw the still
unbeaten son of
Montjeu at the
sales and immedi-
ately thought that
he was very special.
Everything about
him, from his pedigree
to his looks and the way he
moved suggested he could be exciting.
Usually horses like that are just too
good to be true, the Irish trainer told
City A.M.
Yet the horse that caught their eye
that day a couple of years ago has blos-
somed and, even though he landed
the 2000 Guineas earlier this month,
he is still improving according to his
trainer. It all went really well at
Newmarket and he had to run
through gaps, put his head down and
really fight at the end. We think he
learnt a lot from the race as Joseph
had to hit him on both sides. He has
come out of it well and Im happy with
him, said OBrien.
What makes the story that much
more of a fairytale is that Camelot is
ridden by Aidan and wife Annemaries
eldest son, Joseph. The 18-year-old was
an accomplished Pony Club rider who
started out on the Flat almost three
tactics, there is apparently only one
winner. I cannot remember ever win-
ning one, he quips, before pointing
out that it was Josephs decision to
ride Camelot like a six-furlong horse
in the Guineas and that transpired to
be the correct one.
As for the horse, OBrien admits
that even though it has been a fairy-
tale to this point, the Investec Derby at
Epsom represents a very different test.
His breeding suggests he should relish
the step up in trip, but his handler
warns that he does have serious
Kingmambo and Danehill traits which
normally are an indicator of speed
rather than stamina.
Camelot will also have to cope with
the whole Epsom experience, and his
ability to handle the preliminaries, as
well as the undulations and the trip
down to the start, are all playing on
his trainers mind. Yet, you cannot
help but get the feeling the team at
Ballydoyle may well have unearthed
the superstar their multi-million euro
breeding operation has spent decades
searching for.
The training establishment is unlike
anything Ive ever witnessed and
OBriens attention to detail is quite
extraordinary. Not only does he know
the name of every horse that parades
in front of us, he knows how they are
bred and the name of the lad or lass
sat on top.
Camelots preparation for the
Investec Derby includes daily gallops
around a replica Epsom, including a
mock Tattenham Corner, and one cer-
tainty is that his genius trainer will
leave no stone unturned in pursuit of
glory. I cannot even begin to dream
about Joseph winning the Derby, he
confesses. Bookmakers William Hill
are currently only offering even
money that the dream will come true.
When pressed on the rest of the
team likely to travel to Epsom for the
big one alongside Camelot, it was
telling that OBrien struggled to nomi-
nate another serious raider. Astrology
is a nice horse and so is the one that
won at Sandown, is all he will say.
Apparently, the boys will decide in
the next week or two on the makeup
of the rest of the squad, but it is abun-
dantly clear that they will simply be
making up the numbers.
OBrien considers Camelot in fine
fettle for his joust on the Downs
years ago to the day. His career stepped
up a gear in 2010 when he rode 39 win-
ners and finished the campaign as
joint-champion apprentice. Last sea-
son he had his first Classic success
aboard Roderic OConnor in the Irish
2000 Guineas and rounded it off by
winning the Breeders Cup Turf on St
Nicholas Abbey.
However, the young OBrien now
finds himself on board a horse who
could potentially re-write the record
books by becoming the first to land
racings Triple Crown (the 2000
Guineas, Derby and St Leger) since
Nijinsky in 1970. His father admits he
is feeling the pressure, but certainly
believes that Joseph is up to the task.
Hes been involved in the operation
since he could walk and what people
dont realise is that hes been in the
middle of things for a very long time
now, he said. He was in the back of
the jeep before he could ride out and
has seen all our good days, as well as
the ordinary ones.
There is a unique closeness between
father and son that OBrien sees as a
huge advantage rather than a nega-
tive. Its a massive help as we can talk
about anything at any time of day or
night. When pressed on who wins the
debates and arguments on things like
OBrien has high hopes Camelot, to be ridden by his teenage son Joseph, will end his 10-year wait for another Investec Derby winner
Bill Esdaile visits
Aidan OBrien to see
the favourite for the
Investec Derby
TUESDAY 15 MAY 2012
cityam.com
Investec Bank plc (Reg. no. 489604) and Investec Asset Management Limited (Reg. no. 2036094) are authorised and regulated by the Financial Services Authority and are members of the London Stock Exchange. Registered at 2 Gresham Street, London EC2V 7QP.
High fashion stakes
Investec Derby Festival | Epsom Downs Racecourse | 1&2 June 2012
investec.com/derby
Proud to be
part of the
Diamond Jubilee
celebrations
SPORT
33
IN BRIEF
Probe into Spanish GP pit fire
nFORMULA ONE: Williams and
governing body the FIA have launched
investigations into the pit fire that
marred Sundays Spanish Grand Prix.
Four members of the team were
hospitalised by the blze, which took
place after Pastor Maldonados
historic win for Williams.
Cavendish falls again in Giro
n CYCLING: Britains Mark Cavendish
suffered his second crash of the Giro
dItalia as Spaniard Francisco Ventoso
won stage nine. Cavendish, who wasnt
badly hurt, fell in a mass incident less
than 500m from the finish. Ryder
Hesjedal retained the overall lead.
M
ATT Kuchar may have taken
the spoils at the weekends
Players Championship, but he
was not the only golfer to catch
the eye at Sawgrass.
Scotlands own Martin Laird put in
a great performance to finish tied
for second, despite starting the final
round six shots behind.
He might have pushed Kuchar
even harder if he could have found
another birdie at the last, rather
than a bogey, but nevertheless it was
performance to be proud of.
The Glaswegian, at 29, is just
approaching his prime and has put
himself right in the frame for a place
in Jose Maria Olazabals Ryder Cup
team later this year.
Kuchar himself played
exceptionally well to win by two
shots and hardly put a foot wrong
throughout the four days.
The American is hugely consistent
and seems to be around the top of
the leaderboard virtually every week,
without always winning
tournaments.
This is a big breakthrough for the
new world No5, however, and I
would expect to see his career go
from strength to strength.
Another man whose star is on the
rise is Kuchars compatriot Rickie
Fowler, who was among three
players to share second place with
Laird at Sawgrass.
Im a huge fan of Fowler; hes
exciting, a breath of fresh air and
almost in the Bubba Watson league
when it comes to flair.
Last week he won his first PGA
Tour title by beating world No1 Rory
McIlroy in a play-off at the Wells
Fargo Championship at Quail
Hollow, and this week he was up
there again.
When he was selected for the last
Ryder Cup he was something of a
gamble but he fared well then and
Im delighted to see he is now living
up the expectation.
Sam Torrance OBE is a multiple Ryder
Cup-winning golfer, captain and media
commentator. Follow him on Twitter
@torrancesam
Kuchar wins
but Fowler and
Laird shine too
G
E
T
T
Y
G
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Y
A BALL may not yet have been kicked
on his watch but England manager
Roy Hodgson enjoyed the first signif-
icant victory of his fledgling tenure
yesterday with the surprise appoint-
ment of Gary Neville as coach.
Former Manchester United and
England defender Neville, who has
made a successful foray into media
work since retiring last year, has
signed a four-year deal to work under
Hodgson throughout his reign.
The 37-year-olds capture is a major
coup for Hodgson as he prepares for
next months European
Championship and raises the possi-
bility that Neville could be groomed
as a future England manager.
It also comes despite outspoken
Nevilles history of criticising the
Football Association and earlier this
month admitting that Tottenhams
Harry Redknapp, not Hodgson,
would have been his initial choice for
the England job.
Roy asking me to be a part of his
staff and to work with the national
team is not only an honour but a
very special moment for me, said
Neville, who won 85 England
caps and played at five major
international tournaments.
I had absolutely no hesi-
tation in accepting this role
and Im relishing the oppor-
tunity to work alongside Roy
and the team at the Euros
and through to the next
two tournaments.
Hodgson, who is due
to name his 23-man
squad for Euro 2012
tomorrow, said
Nevilles vast tro-
phy-winning expe-
rience would
make him a
tremen-
d o u s l y
respected
figure among players.
He added: At my first
Hodgson coup
as Neville takes
England role
meeting with the FA, I explained that
Gary was someone I wanted as part of
my staff. I think it is very important
we have a younger coach who knows
the dressing room and is very experi-
enced at international level.
Neville is Hodgsons third recruit,
following assistant Ray Lewington
and goalkeeping coach Dave Watson,
since he was named Fabio Capellos
successor two weeks ago.
Earlier this month Neville
expressed surprise at the FAs selec-
tion, admitting he would have picked
Redknapp, although he concluded
that both were good candidates
offering very different qualities.
This year he criticised the FAs
handling of racism allegations sur-
rounding former captain John
Terry and led calls for strike action
in 2004 when defender Rio
Ferdinand was banned for a
missed drugs test.
Neville would be a use-
ful conduit were
Hodgson to seek to coax
former team-mate
Paul Scholes out of
international retire-
ment, after the veter-
an midfielder last
night signed up for
another season at United.
GOLF
COMMENT
SAM TORRANCE
Fowler rivals Bubba Watson for flair
WEST HAM may have to wait until
next season to learn whether they
will move to the Olympic Stadium,
after London 2012 legacy chiefs
yesterday reopened the bidding
process until July.
A decision on which parties will
use the 530m arena from 2014 had
been due on Monday but will now
not be made until August or
September possibly after the
Games themselves have ended.
It is the latest delay in a tortuous
and opaque process that has already
Olympic Stadium decision may
be delayed until after Games
lasted more than 18 months, after
the original agreement with West
Ham was scrapped in October amid
legal challenges.
The London Legacy Development
Corporation hopes the extension
and amendments to the criteria will
attract more bidders to the table,
after just four submitted firm
proposals.
One of the changes removes the
need for governing body approval,
which Leyton Orient chairman Barry
Hearn, a strong opponent of West
Hams potential move, had accused
the Hammers of lacking.
PACEMAN James Anderson will go
into this weeks first Test against
West Indies with an extra spring in
his step after being named
Englands cricketer of the year.
Anderson, who passed 250 Test
wickets to reach joint-fifth on
Englands list of all-time wicket-
takers, beat off competition from
Stuart Broad and Alastair Cook.
He said: Ive been pleased with
my performances over the last year
and was delighted with the way I
bowled on the tour of Sri Lanka.
England gong
for Anderson
BY SPORTS DESK STAFF
TUESDAY 15 MAY 2012
34
SPORT
cityam.com/sport
BY FRANK DALLERES
BY FRANK DALLERES
Neville could be groomed as a
future England manager
TEVEZ MOCKS FERGUSON AS CITY TOAST TITLE
HODGSONS RECRUITS
Gary Neville, coach
Vast experience and close to senior
players, making him a useful ally
Ray Lewington, assistant
Hodgsons former No2 at Fulham has
been hired for Euro 2012
Dave Watson, goalkeeping coach
Birmingham man will work with Joe Hart
MANCHESTER City striker Carlos Tevez mocked former
boss Sir Alex Ferguson with a placard that read R.I.P.
Fergie (left) as the newly crowned Premier League
champions took to the streets to celebrate pipping his old
team Manchester United to the title (main). Tevez left
United for arch-rivals City in 2009.
35
G
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Y
Barton (centre) clashed with Kompany and Aguero after being sent off on Sunday
NORWICH chiefs have warned
bigger clubs off attempting to
poach manager Paul Lambert, one
of the favourites to replace Alex
McLeish, who was sacked by Aston
Villa yesterday after just 11
months in the job.
Villas American owner Randy
Lerner axed McLeish hours after
the conclusion of a
disappointing season, in
which the club finished just
two points above the
relegation zone following a
run of one win in 17 games.
Lambert, who has
taken Norwich from
the third tier to
Premier League and
kept them there on a
shoestring budget,
and Wigans fellow
rising star Roberto
Martinez were swiftly
installed as the
bookmakers
favourites.
But the Canaries
are prepared to fight to keep the
former Scotland midfielder in
charge at Carrow Road, following
their 12th-place finish, according
to chief executive David McNally.
We would not welcome any
enquiry for our manager or any of
the clubs players, said McNally,
who tied the 42-year-old to a new
deal last summer. We will fight
this as hard as weve ever fought.
Lerner issued a withering
assessment of McLeishs brief
reign, which upset some
supporters from the
beginning as he was lured
from bitter rivals
Birmingham, who had just
been relegated.
He said: Compelling
play and results that
instil a sense of
confidence that Villa
is on the right track
have been plainly
absent.
James Anderson is fifth on Englands list of
all-time Test wicket-takers with 252 from 67
matches. Sir Ian Botham leads with 383 in 102
cityam.com
TUESDAY 15 MAY 2012
QPR chairman Tony Fernandes has
vowed to review captain Joey
Bartons latest breach of discipline,
which leaves him facing a possible
double-digit suspension at the start
of next season.
But Fernandes insists manager
Mark Hughes will take the lead on
whether the controversial
midfielder has a future at Loftus
Road, after he was charged with
two counts of violent conduct by
the Football Association.
Barton has until 6pm today to
Hughes given veto as charges
leave Barton facing huge ban
respond to the charges, which relate
to clashes with Manchester Citys
Sergio Aguero and Vincent
Kompany immediately after he was
sent off in Sundays Premier League
match. That red card guarantees
him a four-match suspension, and
FA disciplinary chiefs have the
power to more than double that if
he is found guilty.
There are experienced people
who will come back to me and well
review the whole situation, said
Fernandes, who yesterday revealed a
deal to build a new training
complex at Warren Farm in Ealing.
BY FRANK DALLERES
Norwich issue hands-off threat
over Lambert as Villa decide 11
months of McLeish is enough



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BY FRANK DALLERES
McLeish managed one win
in his last 17 matches