BUSINESS WITH PERSONALITY
AOL’S LAST HURRAH
ARIANNA HUFFINGTON RIDES TO
RESCUE OF AILING WEB GIANT P16
Issue 1,317 Tuesday 8 February 2011
RETAILERS BOOST
RECOVERY HOPES
WORLD ECONOMY
▲
BY JULIAN HARRIS
SPENDING on the UK’s high streets
bounced back in January after
December’s sales were hit by heavy
snow, it will be revealed today.
The news comes after the FTSE
jumped 53.65 points yesterday – a
rise of 0.89 per cent – breaking
through the confidence-boosting
6,000 mark to close at 6,051.03.
Retail sales were up 2.3 per cent on
a like-for-like basis from January
2010, when sales had fallen 0.7 per
cent, according to the British Retail
Consortium (BRC) which released its
findings today. Total sales were 4.2
per cent higher, against a 1.2 per cent
increase in January 2010.
“Pent up demand after December’s
snow” was a factor behind the boom,
the BRC said. In December annu-
alised total sales increased by a mod-
est 1.5 per cent, while “like-for-like”
sales – which ignore shop floor
expansion – fell by 0.3 per cent.
The BRC played down January’s
uptick, partly attributing it to a rush
at the beginning of the month to
avoid the 2.5 per cent hike in VAT.
And it warned the government
against any further squeeze on con-
sumers. “A range of pressures is bear-
ing down on customers,” said BRC
director general Stephen Robertson.
“As it considers the budget, the govern-
ment must not add any more cuts.”
FTSE 100 ▲ 6,051.03 +53.65 DOW ▲ 12,161.63 +69.48
www.cassmba.com
w ww.cassmba.com
Markets are wary of a surprise interest rate hike by Mervyn King’s Bank of England this week
A series of positive economic
releases, combined with rising infla-
tion, has increased the chance of the
Bank of England raising interest
rates this Thursday, observers said.
While an actual hike would still
come as a shock, there is a near-cer-
tainty of an increase by May at the
latest, according to economists.
UK gilt yields rose yesterday, with
10-year gilt yields reaching a nine-
month high of 3.868 per cent, as
NASDAQ ▲ 2,783.99 +14.69 £/$ 1.61 unc
C
Come and have a go if you
think you’re smart enough.
Meet us at our next information session on 17 Feb 2011.
THE INSIDE
www.cityam.com
Picture: Micha Theiner/ CITY A.M
investors considered the risk of a per cent at 1,176.81 points.
hike in rates. “Moving on from where it left off
Meanwhile, the global economic last week, I think the equity markets
recovery continued apace, with are focusing on the growth that is
world equities approaching a 29- out there and are being supported by
month high, and copper – seen as a strong earnings,” said Mike Lenhoff
bellwether of economic activity – of Brewin Dolphin. The Dow Jones
reaching $10,121 (£6,268) a tonne in and S&P 500 jumped to their highest
London. European shares rose to levels since June 2008 yesterday, driv-
their highest close since September en upwards by a wave of merger
2008. The pan-European FTSEurofirst news and solid earnings.
300 index of top shares closed up one ALLISTER HEATH: P2, ECONOMICS: P15
£/¤ 1.19 unc ¤/$ 1.36 unc
TRACK
DAVID HELLIER’S
NEW COLUMN
P11
FREE
Hands bids
for insurer
Chaucer
▲
INSURANCE
BY ALISON LOCK
GUY Hands, founder of private equity
firm Terra Firma, is in takeover talks
with Lloyd’s insurer Chaucer
Holdings, sources close to the situa-
tion confirmed to City A.M. yesterday.
Hands, who was forced to surrender
control of record company EMI to its
creditor Citigroup last week due to its
debt mountain, has approached
Chaucer with a bid to take it private.
In a statement, Chaucer said it
“notes the recent share price move-
ment and confirms that it has recent-
ly received a number of approaches
regarding a possible offer for the com-
pany” but said there was no certainty
an offer would be made.
London-listed Chaucer, which has a
market capitalisation of about £300m,
has been effectively up for sale for the
past two years after suffering losses in
the financial crisis.
A combination of subprime-related
reinsurance losses, exposure to
Bernard Madoff’s Ponzi fraud and a
$65m (£40m) loss from US hurricanes
caused it to lose an estimated £72m in
the year to December 2008.
It resorted to a £75m rescue rights
issue to recapitalise in January 2009
and returned to profit that year, but is
still rebuilding under the guidance of
chief executive Bob Stuchbery.
Hands’ bid is the latest in a string of
insurance deals, such as Beazley’s bid
to acquire Hardy Underwriting last
year and Brit Insurance, which is
being bought by private equity consor-
tium Achilles.
Certified Distribution
29/11/10 till 02/01/11 is 98,444
 2 News
Interest rates will be going up soon
EDITOR’S LETTER
ALLISTER HEATH
HIGHER interest rates are on the way:
that is the lesson from this morning’s
strong January retail sales survey, the
latest of a batch of statistics suggesting
the economy bounced back in
January. Even before today, markets
were already pricing in a 100 per cent
chance of a 0.25 per cent rate hike in
May, with short-dated swaps attribut-
ing a 20 per cent chance of a hike on
Thursday. We shall soon find out.
I regularly encounter two related
objections to raising the Bank of
England’s short-term rates from their
current, ridiculously low 0.5 per cent.
7th Floor, Centurion House,
24 Monument Street, London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Alex Ridley
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
Distribution helpline
If you have any comments about the distribution
of City A.M. Please ring 0207 015 1230, or email
distribution@cityam.com
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editor’s
Code of Practice, a copy of which can be found at
www.pcc.org.uk
Printed by Newsfax International,
Beam Reach 5 Business Park,
Marsh Way, Rainham, Essex, RM13 8RS
WHAT THE OTHER PAPERS SAY THIS MORNING
SEC EYES MORTGAGE DISCLOSURES
US securities regulators investigating
the role of banks in the mortgage cri-
sis are homing in on the question of
whether investors were misled about
the home loans used to back securi-
ties. The Securities and Exchange
Commission and other regulators
have been investigating a wide range
of banking activities in connection
with mortgages that were packaged
into securities and sold to investors.
HELICOPTER SELL OFF GROUNDED
Ministers will today cancel advanced
plans for the £6bn privatisation of the
search-and-rescue helicopter service, cit-
ing concerns over misconduct in the
bidding process. The last-minute deci-
sion to scrap the competition comes
after military police were called in to
investigate the alleged mishandling of
commercially sensitive information by
former Ministry of Defence staff.
Many argue that our elevated rates of
inflation come either from higher tax
or from higher commodity prices –
and therefore are either not “real” or
are out of the Bank’s control. Let’s
take these points in turn.
CPI-CT and CPIY, which supposedly
strip out the effect of tax, are running
at just 1.9 per cent and two per cent.
But these esoteric measures are calcu-
lated on the assumption that indirect
tax hikes are passed on in full to con-
sumers. This is nonsense. Pass-
through was only one-third after the
2008 VAT cut. Assuming that one-half
of the increase in indirect taxes last
year was reflected in the prices
charged to consumers, Henderson cal-
culates that inflation would now be
2.8 per cent had tax rates remained
stable – still too high.
What about commodities? UK infla-
tion is much higher than elsewhere,
even though most countries are facing
the same supply shock (dubbed cost-
push inflation by some). The reason
why the Bank is tasked with keeping
Bank lending
target agreed
POLITICS
▲
BY RICHARD PARTINGTON
BRITAIN’S banks are to pledge over
£1bn in funding for small businesses,
as months of negotiations with the
government draw to a close.
The agreement comes as part of the
“Project Merlin” talks between
Westminster and the City over indus-
try-wide lending commitments and
pay transparency.
UK banks are understood to have
agreed to offer £1.3bn over three years
to small businesses, particularly in
parts of the country worst hit by the
spending cuts.
They will now make around £190bn
of gross corporate lending available
next year, an increase from around
£175bn this year.
State-backed Royal Bank of Scotland
has set up a £100m fund to support
SWISS SEE INFLOW OF OIL FIRMS
Switzerland has witnessed an inflow
of Russian oil traders, bolstering the
country’s claims to be the world’s
leading trading centre for physical
oil, industry executives said. State-
owned Rosneft, Russia’s largest oil
producer, and Bashneft, a top refiner
and fast-growing oil producer, have
registered trading operations in
Geneva and Zurich, respectively, over
the past few weeks. Both currently
trade from Moscow.
BRUSSELS STANDS BY EFSF SCOPE
European officials have insisted they
are not backing away from proposals
to give the eurozone’s bail-out fund
more powers to tackle the debt crisis
despite a failure to back the changes
at a summit of EU leaders on Friday.
Officials from the European Union
said the powers were still on the table
along with other economic and fiscal
measures aimed at shoring up the
euro.
inflation at around two per cent a
year is that it has much greater pow-
ers over average prices than many peo-
ple realise. It can’t stop individual
prices – such as wheat – from shooting
up – or others– such as the cost of
computers – from collapsing. But it
has a huge influence over the average
price in the economy.
This is because it can vary the total
amount of demand in the economy;
in turn, this is because it can largely
determine the overall amount of
money. That is why Milton Friedman
said that inflation is always a mone-
tary phenomenon: he meant that it is
always in the power of the central
bank to create or to stop inflation
using its control of the printing press,
short-term interest rates (and in some
countries) its powers to force banks to
hold more or less capital.
Higher commodity prices don’t
automatically lead to increases in the
overall, average price level: this only
happens if the Bank of England does-
n’t adjust demand to compensate.
business franchises ahead of the move.
The lender hopes 1,800 franchises
creating 24,000 jobs could be set up as
a result.
Chancellor George Osborne is also
said to have reached an agreement
with the banks over pay transparency.
Under the new regime, Britain’s
biggest banks will be forced to reveal
the remuneration packages of as
many as eight of their highest earning
employees below board level.
Staff below board level will not be
identified by name, according to
Sky News.
Chancellor George
Osborne has agreed
lending targets and pay
transparency measures
with UK banks
FSA CUTS FINE FOR GUILTY FINANCIER
A financier found guilty of market
abuse had his fine of £281,000
almost halved yesterday after the
Financial Services Authority decided
that he had been motivated by
“wishful thinking” rather than
deliberate deceit. David Massey bor-
rowed then sold 2.5 million shares
in Eicom at 8p each on November 1,
2007.
BRITAIN CLINGS TO CULT OF EQUITY
British pension funds are betting
more heavily on shares than any of
their overseas peers, according to a
study that reveals that Britain is still
the world’s third-biggest pension-
saving country. Yet British funds
have reduced their exposure to equi-
ties from 74 per cent to 55 per cent
over the past decade, according to
research by the actuaries Towers
Watson.
Regardless of oil and commodity
prices, a disastrous bout of deflation
could be generated in a matter of
months were the Bank to suddenly
sell tens of billions of pounds worth of
gilts, sucking out pounds from the
economy and slashing aggregate
demand. Alternatively, the Bank could
trigger hyperinflation by crediting
every single bank account in the coun-
try with an extra £100,000 – as con-
sumers rush out to buy goods, services
and assets, prices would jump almost
instantaneously. Manipulating
“demand-pull” forces can cancel out
“cost-push” pressures – the claim that
the Bank can’t control inflation in the
current climate doesn’t stand up to
scrutiny. Those who don’t want higher
rates should be arguing for the Bank’s
target to be scrapped – not claiming
that it has no power over inflation.
Ultimately, all of this is academic.
Interest rates are going up, and rightly
so. It is just a matter of when, not if.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
FDIC chairman Sheila Bair warned it may limit bonuses further
US to limit bank bonuses
US BANKING
▲
BY KATIE HOPE
US REGULATORS yesterday endorsed
a proposal that executives at the
largest financial institutions have
half of their bonuses deferred for at
least three years.
The proposal, approved by the
Federal Deposit Insurance Corp
(FDIC), has yet to be approved by
other US financial regulators, includ-
ing the Federal Reserve and Securities
and Exchange Commission.
PREMIUM BONDS GET CASH AT LAST
Hundreds of thousands of investors
in Premium Bonds received their
prize money late last month. A print-
ing error meant some of the win-
ning cheques were written out to the
wrong people. More than 20 million
people have the tax-free,
Government-backed bonds which do
not pay interest, but offers savers a
potential share of a monthly prize
draw.
TAXPAYER REPAID AFTER 23 YEARS
More than 20 years after Barlow
Clowes went bust, taxpayers appear to
have been repaid the £153m which
was distributed as ex-gratia compensa-
tion to more than 14,000 investors.
Mark Hoban, Financial Secretary to
the Treasury, announced that a total
of £156.5m has now been recovered
from the liquidation of a complex web
of offshore companies.
CITYA.M. 8 FEBRUARY 2011
NEWS | IN BRIEF
Macquarie warns on profit
Macquarie Group, Australia's top invest-
ment bank, tipped a five per cent fall in
second-half profit yesterday but said
market conditions were returning to
normal. Macquarie, which has shed its
managed listed funds model to focus on
a more traditional investment banking
model, said its balance sheet was strong
with A$3.2bn (£2bn) in excess capital at
31 December. The bank previously said it
expected its year to March 2011 net
profit to be broadly in line with last
year's A$1.05bn.
JP Morgan hires ex-FSA risk chief
The former Financial Services
Authority (FSA) head of risk, Sally
Dewar, has been hired by JP Morgan to
bolster the US bank’s regulatory meas-
ures. She will join the lender’s London
office from June as a managing direc-
tor, reporting to global head of risk
Barry Zubrow. Dewar will help to over-
see JP Morgan’s response to incoming
European and US regulation, including
changes to the EU Market in Financial
Instruments Directive. She left the reg-
ulator in January after announcing her
resignation last spring.
Picture: Reuters
The FDIC warned that it may go
further to ensure the bonuses proper-
ly align executives’ interests with
investors, and is considering toughen-
ing the proposal to restrict executives
from hedging deferred bonuses in
the form of stock. “Whether we
should be prohibiting hedging, that
is an issue that is left open,” FDIC
chairman Sheila Bair said.
The US plan is much softer than
European Union guidelines limiting
top bankers to receiving 20 per cent of
their annual bonuses upfront in cash.
ITALY SUMMONS FIAT CHIEF EXEC
The Italian government on Monday
summoned Sergio Marchionne for
talks with Prime Minister Silvio
Berlusconi after Fiat SpA's chief exec-
utive suggested that a combined com-
pany with Chrysler LLC could be
based in the US, comments that have
poured salt on one of Italy's deepest
wounds: its ailing industrial sector.
NOKIA CEO CONSIDERS BIG SHAKE-UP
Several senior officials on Nokia’s
group executive board are expected
to leave soon as part of a major shake-
up being considered by the Finnish
cellphone giant's new chief executive,
according to a person familiar with
the situation.Exactly who will leave
the company remained unclear.
Stephen Elop, a Microsoft veteran
who was hired in September to help
revive Nokia, is finalizing his plan to
revamp the company.
CITYA.M. 8 FEBRUARY 2011 News 3

Harbinger sells last

London-based
energy firm Ensco’s
chief executive Dan
Rabun has agreed
a merger with

shares in Inmarsat
Texas-based oil
driller Pride
International.

Inmarsat, a company it once consid-

▲
HEDGE FUNDS
BY RICHARD PARTINGTON
ACTIVIST American hedge fund
investor Harbinger Capital is to sell its
entire holding in Inmarsat, the
British satellite operator.
Controlled by Philip Falcone, the
fund holds 64.3m shares, or 14 per
cent of the company.
The sale brings to a close several
years of Harbinger investment in
ered as a takeover target.
By 2008, the US fund had built up a
28 per cent investment in the compa-
ny and said it was considering a pur-
chase.
Yet Harbinger halved its stake in
October last year, raising around
£410m.
Credit Suisse and UBS have been
appointed as joint bookrunners to
dispose of the Harbinger shares.

Ensco buys
US oil driller
in £4.5bn deal
fields, encouraged by strong US oil
▲

ENERGY
BY RICHARD PARTINGTON
LONDON-BASED drilling rig operator
Ensco has agreed to buy US rival Pride
International in a $7.3bn (£4.5bn) deal to
create the world’s second-largest off-
shore driller by number of customers.
The cash and stock transaction is val-
ued at $41.60 per share based on Ensco’s
closing share price on Friday last week
and represents a 21 per cent premium
to Pride’s closing price.
The Houston-based oil firm’s share-
holders will receive 0.4778 new shares of
Ensco as well as $15.60 in cash for each
share of Pride common stock they hold.
The deal, which will close as soon as
the second quarter of this year, will cre-
ate a huge deepwater drilling firm sec-
ond only to Transocean in terms of
number of rigs.
The merger comes almost one year
after the disastrous Gulf of Mexico oil
spill and as the offshore drilling indus-
try attempts to regroup.
However, major energy companies
have not been deterred by the Macondo
well leak.
Oil giants such as Chevron and Exxon
Mobil are expected to continue spend-
ing billions of dollars on new offshore
prices, which are hovering near $90 per
barrel.
The combined company will operate
a fleet of 27 floating rigs, including 21
deepwater drilling platforms, as well as
47 jackup rigs for shallower drilling.
Ensco was advised by Deutsche Bank
and Citibank on the merger, while
Goldman Sachs advised Pride.
Ensco chief executive Dan Rabun
said: “The combination is an ideal strate-
gic fit, as our rig types, markets, cus-
tomers and expertise complement each
other with minimal overlap.”
Ensco is listed in New York but decid-
ed to move its headquarters to London
from Dallas, Texas in December 2009.
The group will continue to be UK-based.
ANALYSIS l Ensco Plc.
51.81
56 $ 7 Feb
54
52
50
48
8 Nov 29 Nov 17 Dec 7 Jan 28 Jan

Watchdog finds Deutsche head

excess Sky profit in gender row
▲

MEDIA
BRITISH Sky Broadcasting has made
“excess profits” on its Sky Movies serv-
ice, according to the Competition
Commission.
The company, which is the subject
of a takeover bid from Rupert
Murdoch’s News Corporation, has an
exclusive deal with the six big
Hollywood studios and may now be
forced to lower its wholesale price to
other broadcasters who want to show
its ten film channels.
The commission found Sky Movies
had consistently earned excess profits
that were disproportionate to the
risks it took early on in the deals.
BANKING
HEAD of Deutsche Bank, Josef
Ackermann, waded into a gender war
yesterday by saying that appointing
more women to its executive board
would make it “prettier and more
colourful.”
Amid a debate on whether Germany
should set quotas for women on the
boards of major groups, Ackermann
acknowledged there were none on the
bank’s executive committee, a subordi-
nate body to the board of directors.
“But I hope it will be prettier and more
colourful one day” when more women
are named, he said to newspaper
Handelsblatt.
CITYA.M. 8 FEBRUARY 2011 News 5

US backs Brazil in currency

war with China over yuan
Geithner avoided mentioning China cannot address these challenges by

▲
WORLD ECONOMY
BY HARRY BANKS
THE US and Brazil will work together
to pressure China on its undervalued
currency, US Treasury secretary
Timothy Geithner indicated yesterday
in comments that reinforced an
emerging alliance between the
Western Hemisphere’s two biggest
economies.
In his one-day visit to Brazil,
by name. Yet Geithner attributed
some of Brazil’s recent trade prob-
lems to countries “that understand
the value of having an undervalued
currency” – a clear reference to
China’s yuan -- and said that the US
was committed to seeking a solution.
“We have a common interest with
Brazil and other emerging economies
that growth is balanced,” he said.
“Brazil and other emerging markets
their own policy choices alone,” he
added. “It’s now more important
than ever that we work together.”
New Brazilian President Dilma
Rousseff, who took office on 1
January, has identified China’s under-
valued yuan as one of the biggest
threats to Brazil’s economic boom.
Brazil’s economy grew seven per
cent last year, but the pace of growth
is expected to slow this year.

Lord Myners has a number of non-executive roles in his portfolio

Lord Myners
takes fresh
job in the City available to ex-ministers at a loose end.
▲

POLITICS The going rate for a top-rate ex-Cabinet

BY JULIET SAMUEL
EX-CITY minister Lord Myners this
week added a second non-executive
role to his portfolio, with his appoint-
ment as a partner and chairman of
Autonomous Research, the independ-
ent research firm. And he is thought
to have a third on the way as chairman
of billionaire Nicolas Berggruen’s new
acquisition vehicle which is seeking to
raise around £700m from listing in
London. The German-American
investor, along with business partner
Martin Franklin, is offering shares in
the vehicle at a fixed price of 10
pounds each, two sources said..
But unlike many of his ex-ministeri-
al peers, Myners’ move is not his first
experience of City work – his pre-polit-
ical career included stints at
Gartmore, NatWest and the Guardian
Media Group.
His experience means that Myners
might appreciate more than most the
lucrative nature of the non-exec roles
member, such as Peter Mandelson, for
a semi-formal advisory role is a cool
£200,000 a year for a couple of days a
month. Those at the bottom can still
bag about £50,000 for one day a week.
Companies are often keen to get ex-
ministers on board for a variety of rea-
sons but the most salient is usually a
bulging contacts book.
Ken Brotherston, chief executive of
executive search firm Kinsey Allen told
City A.M.: “There’s a fairly well-beaten
path [into the City] for ministers with
lots of contacts, helping to oil the
wheels and effect introductions. It’s
about the profile, the contacts and the
ability to help things happen.”
In addition, ex-ministers offer com-
panies an insight into the practical
workings of government, helping
them predict the next regulatory
threat. Kit Bingham of executive
search firm Odgers Berndtson says an
ex-minister’s main marketable skill is
“knowledge of the machine. It’s help-
ing with forecasting”.

POLITICS AND THE SQUARE MILE

FOUR EX-MINISTERS CASHING IN WITH CITY ROLES AFTER THEIR GOVERNMENT
POSTS

1
Second to his old boss Tony Blair, Lord Peter Mandelson
is about as big a gun as they come in the ex-ministerial
world. He recently scooped up an informal advisory
role at Lazard, likely to be worth six figures a year.

2
Baroness Shriti Vadera recently snapped up two non-exec roles at BHP
Billiton and AstraZeneca after two years in ministerial roles that includ-
ed stints in the business department and cabinet office until 2009.
Before joining government, she worked in investment banking.

3
After six years in Blair’s Cabinet and two years as health
secretary, Patricia Hewitt cashed in with advisory roles
at Alliance Boots and Bupa. She was then caught out by
a Panorama sting in 2010 giving lobbying advice.

4
Former education secretary Ruth Kelly spent three years as a junior
minister and two years in the Cabinet until 2008 before quitting as an
MP in May last year. She quickly scooped up a lucrative job leading
HSBC’s strategy unit, reportedly for a six figure salary.
 6 News CITYA.M. 8 FEBRUARY 2011

Investors call
for changes
at Alliance
FUND MANAGEMENT calculates the voting position of
▲

BY ALISON LOCK members of Alliance Trust Savings

(ATS), which holds 21.3 per cent of
ACTIVIST investor Laxey Partners Alliance. The scheme proportionately Alliance Trust’s chief executive Katherine Garrett-Cox (pictured, left) and Laxey Partners founder Colin Kingsnorth (right).
renewed its calls for change at scales up the responses of ATS mem-
Alliance Trust yesterday, describing bers that vote to represent all poten-
the board’s approach as a “poison tial votes. Laxey argues that this ALLIANCE Trust’s share price discount “The board doesn’t think discount con- that just 0.5 per cent of ATS investors
pill” for its share price. inflates the share of those that vote, to its net asset value (NAV) is now 16.5 trols are in the best interests of all share- vote, giving those that do a significant
Laxey, which has a 1.3 per cent which include Alliance’s board mem- per cent, far wider than peers such as holders, but more to benefit short term advantage.
stake in the £2.5bn investment trust, bers, giving directors undue influ- RIT Capital Partners, trading at a 2.5 per investors,” sources familiar with Alliance Numis analyst Charles Cade said
has demanded the board reduce its ence. “We believe the stock market cent premium, or F&C Investment Trust told City A.M. “The board isn’t averse to Alliance’s strategy to improve perform-
persistently large share price dis- views both the lack of a DCM and the with a 9.7 per cent discount. share buybacks in any way but wants to ance was showing signs of success and it
count to its net asset value. share enfranchisement scheme as a It means Laxey’s stake, valued at take different factors into consideration was important to create demand for its
Laxey wants it to set up a discount ‘poison pill’ which is depressing the £37.05m by share price on 26 January, is too.” shares in order to narrow its discount.
control mechanism (DCM) to trigger a price of your shares,” said Laxey direc- worth £7m more in net asset value, at Alliance, an industry heavyweight that Laxey’s complaint is not the first time
share buyback to bolster the price if tor Michael Haxby in the letters. £44.03m. The two letters, to the board was established in 1888, also dismisses Alliance’s investors have queried its dis-
the discount rose above ten per cent. But Alliance chair Lesley Knox has and shareholders, follow Laxey’s com- the charge that its directors benefit from count. In 2008, another investor, Troy
“They stand out a mile as having a said the board will narrow the dis- plaint on 10 November last year, which votes, saying the directors’ combined Asset Management, built up a stake in
big discount,” said Laxey founder Colin count by improving investment per- called for an open debate over discount shareholdings made up less than one per Alliance and raised support among
Kingsnorth. formance rather than buying stock. controls. It was rejected by Alliance’s cent of Alliance Trust Savings’ 21.3 per investors, but despite months of negotia-
Isle of Man-based Laxey also called Laxey has asked for a vote on the board. cent holding. However, Laxey contends tions with the board was unsuccessful.
for reform of the voting system that proposals at the AGM on 20 May.

Samsung GALAXY S. Now with a

films & games package worth over £50.
With stunning clarity and superfast access, enjoy films, games and over
100,000 apps from Android Market™ including GoogleMaps™.

Screen images are simulated. Terms and conditions apply. See samsung.com/uk/galaxys for details © 2011 Samsung Electronics Co. Ltd. Google and Android are trademarks of Google, Inc. Inception © 2011 Warner Bros. Entertainment Inc. and Legendary Pictures. All Rights Reserved Inc © 2011 Gameloft. All rights reserved. Gameloft, the Gameloft logo and N.O.V.A. Near Orbit Vanguard Alliance are
trademarks of Gameloft in the U.S. and/or other countries.

LCH Clearnet to
clear real-time Asset managers Trading in small caps set
to be volatile this Friday
freight platform warn on EU rules and reflects the firm’s switch to a
▲

MARKETS
new technology platform and its
▲

FINANCIAL MARKETS TRADING on London’s Alternative focus on core liquid markets.

▲

FUND MANAGEMENT
(MiFID) consultation, IMA wholesale Investment Market (Aim) may be “It could be a very interesting day
CLEARING platform LCH Clearnet is LONDON’S asset management industry director Guy Sears said: “Rules for non- volatile on Friday because this is for the Aim market and Aim shares as
to clear all trades on freight and com- body said yesterday it was “not con- equity markets should be specific to when CMC Markets will close out any the CFDs get closed out,” Atif Latif,
modity derivatives on trading venue vinced” proposed new EU regulation of each instrument and should not neces- Aim share bets made by its clients. director of trading at Guardian
ClearTrade Exchange. financial trading platforms would sarily be modelled on equity markets.” CMC delisted trading in the junior Stockbrokers, said.
Singapore-based Cleartrade is the improve the markets. Sears said he understood why the EU index with no new positions opened The closing of CFD trades will have
first regulated venue for over-the- The Investment Management wanted a clear definition for “the via its trading platform on Aim an influence on the physical Aim
counter cleared shipping and soft Association (IMA), whose members waterfall of market service providers shares after 21 January . market as providers of the financial
commodities derivatives. For the first manage £3.37 trillion of assets, said caught by MiFID”, but was “not con- Any Aim bets by CMC clients that instruments have to hedge the trades
time, screen trades will be fed auto- plans to define venues as organised or vinced the new category of organised remain open will be closed out at the by holding the actual stocks to pro-
matically in real time from processing multilateral trading facilities were too trading venue…will result in a better closing price on 11 February. tect their positions.
to clearing. The process will reduce broad. market structure”. “The OTF concept is CMC’s decision follows its move Latif said as much as 50 per cent of
risk and speed up the clearing process In its submission to the EU Markets too widely drawn, and the meaning of last year to stop trading in stocks Aim market positions could be held
to allow higher volumes of trades. in Financial Instruments Directive ‘organised’ unclear,” Sears said. below a certain market capitalisation via CFDs.
CITYA.M. 8 FEBRUARY 2011
Santander in
£3.6bn deal
▲
BANKING
BY JULIET SAMUEL
SANTANDER will splash out 16.58bn
Polish zloty (£3.6bn) on a full buy-out
of Poland’s third-biggest banking fran-
chise, Bank Zachodni WBK, the bank
announced yesterday.
Santander, led by chief executive
Alfredo Sáenz, confirmed that a for-
mal offer of 227 zloty (£49) per share
in cash has been accepted by Allied
Irish Banks, which owns 70 per cent of
the business, and other shareholders.
The deal, subject to Polish regulato-
ry approval, forms part of Santander’s
ongoing strategy to diversify outside of
Spain, where non-performing mort-
gages and capital requirements were a
major drag on earnings last year.
Already, the bank derives most of its
profits from outside of Spain, having
embarked on an ambitious expansion
programme. In the past year alone, it
has announced purchases in
Germany, Mexico and the UK (where it
has committed £1.8bn to buy 318 RBS
branches), as well as the Polish deal.
Julius Baer to return £325m
to shareholders in buyback
▲
BANKING
SWISS private bank Julius Baer will
buy back up to Swfr500m (£325m) of
shares and raise its dividend, return-
ing excess capital to investors after
an unsuccessful acquisition hunt.
“There is nothing to say we won’t
make further share repurchases
unless we do an acquisition and use
the capital for that,” chief financial
officer Dieter Enkelmann said yester-
day.
Switzerland’s biggest listed pure-
play private bank said it increased
In all, the acquisitions equate to
some £6.3bn in spending, an amount
that has raised eyebrows in a year
when banks are being forced to
increase their capital ratios.
Santander says the Bank Zachodni
purchase will shave 40-60 basis points
off its tier one capital ratio, in addition
to a 78bps drop from its other buys.
But it claims that organic capital gen-
eration of 0.9 per cent in the mean-
time will make up most of the
difference, forecasting a ratio of 8.4-8.6
per cent for this year, well above the
4.5 per cent Basel III requirement.
ANALYSIS l Santander
8.95
€
9.00 7 Feb
8.50
8.00
7.50
29
12 Nov
Nov 29 Nov 20 Dec 10 Jan 31 Jan
net profit by six per cent and attract-
ed Swfr9bn of net new money in
2010, even as the franc’s strength
against the euro ate into assets and
profits. Full-year profit declined 9.3
per cent to Swfr353m in 2010 from
Swfr389m a year earlier. Assets under
management fell to Swfr170bn at the
end of 2010 from Swfr175bn two
months earlier, partly because of
gains in the Swiss currency against
the dollar and euro.
“We have regained momentum in
the second half and we are hoping to
continue this momentum into 2011,”
Santander chief executive Alfredo Sáenz praised the deal
Inception available now from samsungmovies.com
said chief executive Boris Collardi,
adding that currency volatility
remained one of the major chal-
lenges facing the private bank this
year.
The impact of Swiss franc strength
on profits and on client assets will be
the focus this week as results come
in from Swiss banking heavyweights
UBS and Credit Suisse.
“We would expect UBS and Credit
Suisse this week to see similar trends
in private banking: healthy net new
money but weak revenue and higher
costs,” said Nomura in a note.
News 7
ANALYSIS l Bank Zachodni financial
highlights 2009
€701m
Interest and similar
income
€267m
Fee and commission
income
€267m
Operating profit
€267m
Profit before tax
€227m
Net profit
€12.6bn
Total assets
Picture: REUTERS
Danish banks play down
Amagerbanken exposure
al financial crisis.
▲
BANKING
Amagerbanken has said it will
DENMARK’S biggest financial insti- transfer its assets to Finansiel
tution Danske Bank and Nordic bank Stabilitet, the state company that
Nordea said yesterday they had little administers failed banks, allowing
exposure to Amagerbanken, which administrators to close the bank.
fell into state hands on Sunday. Amagerbanken, which was
Jyske Bank and Sydbank also said Denmark’s eighth biggest bank in
they were not exposed to terms of lending, said fourth-quarter
Amagerbanken, which failed to meet writedowns wiped out its equity,
solvency requirements and is to be attributing a large part to failed
wound up by state administrators. property investors.
But Denmark will still be lumbered The failure of Amagerbanken was
with a $2.8bn (£1.7bn) bill, as roughly the same size as the mid-
Amagerbanken became the coun- 2008 collapse of Roskilde Bank, pre-
try’s tenth bank to fall into the viously the biggest Danish bank
state’s hands in the wake of the glob- failure.
8 News CITYA.M. 8 FEBRUARY 2011

ANALYSIS l Bellway home sales in six months to 31 January

Traditional two-storeys boost developer

DURING the debt-fuelled property
boom, developers built endless
blocks of flats. Many of these were
located in so-called “regeneration”
areas, downtrodden urban waste-
lands on the edge of Britain’s former
industrial cities like Manchester and
Sheffield; many now stand empty, a
testament to the industry’s collec-
tive stupidity.
Part of the problem was central
government-imposed housing densi-
ty targets, which encouraged devel-
opers to build one-and-two bedroom
flats rather than family homes.
These targets have since been
scrapped by the coalition govern-
ment, and Bellway yesterday
thanked a shift away from apart- higher order book, with orders up
ments to traditional two-storey three per cent year-on-year to Flat sales:
houses for “encouraging” trading in £402m. Total home sales:
January.
All in all, it was a solid first-half
Taken together with better first
half sales, this suggests the group is 2,332 816
performance, with completions up being slightly too conservative when (up 3.8 per cent
year-on-year)
3.8 per cent year-on-year. The average it says it expects volumes to be flat
selling price was up from £156,000 this year, although profit growth
to £168,000, and operating margins will largely come from recovering
are up 100 basis points year on year. prices and higher margins. With the
RBS estimates that profit was shares trading on around 0.72 times House sales:
around 27 per cent higher, against
guidance in the December state-
2011 net asset value – bang in line
with the sector – we would suggest 1,516
ment for growth in the region of 20 cautious buying going forward.
per cent.
The outlook also appears to be
improving. Bellway is the first in the BOTTOMLINE Houses account for
sector for some time to report a Analysis by David Crow 65per cent
of sales
(up 5 per cent
year-on-year)
Average price
per property
£168,000
(up 7.6 per cent
year-on-year)

A move back
to houses aids
Bellway sales
Leitch said the overall pick-up in
▲

PROPERTY
BY MARION DAKERS
RENEWED demand for traditional
two-storey homes helped house-
builder Bellway post a 7.6 per cent
rise in its average sale price yester-
day.
Bellway said in an update that it
sold 2,332 properties in the six
months to the end of January, a rise
of 3.8 per cent on last year.
The FTSE 250-listed firm has shift-
ed its property mix away from flats
in the past year, which has helped
push its average property sale price
to £168,000 at a time when property
values have dipped.
Around 65 per cent of Bellway cus-
tomers currently buy more tradition-
al homes, though finance director
Alistair Leitch said this is likely to
stabilise as a swathe of flats in East
London start to sell in the run-up to
the Olympics.
sales had potential to continue in
2011. “The early signs that we’ve had
in January are encouraging,” he said.
“Can we keep that momentum
going through to Easter? ... As long
as we don’t have anything untoward
happening to the UK economy or to
the world political situation, then
we should be okay,” Leitch said.
Bellway shares rose 2.8 per cent to
close at 657.5p yesterday.
ANALYSIS l Bellway
700
657.50
p 7 Feb
650
600
550
500
8 Nov 26 Nov 16 Dec 10 Jan 28 Jan

St Modwen returns to profit on

rising rents in regional properties
three per cent to £1.1bn in the year to
▲

PROPERTY
ST MODWEN Properties swung back
into annual profit and net asset
growth yesterday, and pledged to pay
shareholders their first final dividend
in two years.
Pre-tax profit at the firm, which
specialises in brownfield sites around
England, was £37.5m for the year,
compared to a £119.4m loss in 2009.
St Modwen’s property values rose
30 November.
Vacancy levels in the firm’s proper-
ties have also dropped from 17 to 12
per cent.
“Despite some of the gloomier fore-
casts to the contrary, we have also
continued to benefit from the rela-
tive resilience of our occupier mar-
kets, underpinned by our own focus
on specific active asset management
initiatives,” the company said.
 The Capitalist
10
PRICE OF
LOVE RUNS
HIGH FOR ST
VALENTINE
WITH heart-strewn cards and lavish bou-
quets lining the shelves of the City’s
shops, it seems even the most business-
focused of postcodes can’t escape the
romantic distractions of St Valentine’s
Day.
So it’s lucky that bonus season is in full
flow, as the VAT hike and inflation com-
bine to push the expected Valentine
spend up from £550 to £595 this year.
But it appears that rising prices can’t
dissuade romantic Brits from splashing
out, with long-haul destinations New York
and Las Vegas reappearing on the top five
Valentine’s 2011 destinations, according
to travel website Expedia.
For those more focused on purse string
than heart strings though, the ever-pru-
dent Institute of Chartered Accountants
of England and Wales, which has been
busy adding up the cost or the romantic
day, has a few suggestions for how to cut
the cost of romance.
Unfortunately The Capitalist can’t imag-
ine many bankers’ wives will be overly
impressed with a frozen ready meal and
second-hand jewellery – both of which
are included in a list of VAT-free tips from
the industry body.
New York is back on the list of top Valentine’s destinations for romantic mini-breaks
OWN GOAL
A record afternoon of scoring in the
English premier league usually comes with
few repercussions beyond some particular-
ly painful heads come Sunday morning.
But for Sporting Index this Saturday’s
tally of 41 goals in eight games meant a
rather higher price as it notched up a
£500m payout. The problem wasn’t so
much the volume of goals but the early
scoring by top teams – both Arsenal and
Manchester City had goal-heavy first halves
that left Sporting Index turning out its
pockets after 45 minutes.
“We knew the writing was on the wall at
half-time,” said a spokesman for the firm. If
only Arsene Wenger had such foresight…
EDITED BY
ELIZABETH FOURNIER
GOT A STORY? EMAIL
thecapitalist@cityam.com
Singer James
Morrison per-
formed for
guests at Bob
Wigley’s
50th birth-
day celebra-
tion last
weekend
LIFE BEGINS AT 50
There were doubtless a few tired souls in
the City yesterday in the aftermath of the
50th birthday celebrations of Bob Wigley
(right), the former Merrill Lynch banker
who chairs Yell, among other posts.
Wigley took over the luxury Limewood
Hotel in Hampshire, owned by Ineos
owner Jim Ratcliffe (a client of his from his
Merrill days), and entertained guests
including Lastminute.com founder Brent
Hoberman, “dragon” Peter Jones and
Greg Barker, the minister from the
Department of Energy and Climate
Change. The Capitalist is reliably
informed that all ages were catered
for at the weekend-long festivities,
CITYA.M. 8 FEBRUARY 2011
with singer James Morrison of ‘You Give Me
Something’ fame (pictured above) perform-
ing on Saturday night, and the English
Chamber Orchestra providing musical
accompaniment. The orchestra even played a
Wigley-composed tune, which The Capitalist
can’t help hoping might pop up on iTunes.
A SHOT AT ROMANCE
For singles in the City, how better to spend
the money you’ve saved on chocolates and
flowers over the year than by investing it in
the search for everlasting love? On Saturday,
lonely hearts can enjoy an open bar and a
chance of romance at London’s first pre-
matched singles ball at the Hurlingham
Club in Fulham. To avoid the usual awkward
moments, organisers Antipodate are put-
ting attendees in touch with a com-
patible ‘date’ before the
evening. At least that way
potential Casanovas are
saved the trouble of
coming up
with that perfect
chat-up line.
CITYA.M. 8 FEBRUARY 2011 News 11

When it makes sense to shun the bigger banks

working for the likes of Credit Suisse,
Goldman Sachs and Bank of America
Merrill Lynch. None of the bulge
bracket firms were named as advisers
to BP on the deal. Instead the man-
date went to Philip Lambert, a banker
who plied his trade at Kleinwort
Benson before setting up his own
THE INNER CIRCLE Mayfair-based firm.
One person not surprised in the
DAVID HELLIER least by this is Mervyn Metcalf, whom
I met yesterday to discuss the latest
smaller focused bank. “The relation-
ship tends to be more personal in a
boutique and consequently is often
deeper and stronger.”
Metcalf, who has advised clients
such as the Guardian, Liberty and
Stonegate Pub Company (backed by
TDR) , says that building relationships
at the bigger banks can sometimes be
tricky. “So many people felt that they
had to be included in a meeting that
it became difficult to achieve a rap-
have loved to have been on that deal,”
he says). It’s a process that is now in
the final round – with six potential
bidders through to the final round –
where BetFred is thought to be along
with rival bids including one from
Martin Broughton, the former BA and
Liverpool football club chairman.
There’s also competition from
favourites Gala Coral.
Meanwhile, the abandonment of
the recent London offering for the
the London listing of Nord Gold, the
gold unit of Russian steel group
Severstal. “The roadshow is ongoing
and the pricing is due on Friday,” said
one adviser yesterday, still hopeful
the group can raise up to £900m.
Advisers point to the fact that Nord
Gold is somewhat gold-plated; it’s the
first Russian float to qualify for a pre-
mium listing under the UKLA’s listing
rules and its primary listing is in
London rather than Moscow. If all

W
HEN BP announced its
recent share swap with the
Russian oil group Rosneft
there was a sharp intake of
breath amongst corporate financiers
goings on in the market.
Metcalf, now managing director of
boutique investment bank Global
Leisure Partners, argues that it is eas-
ier to build client relationships at a
port with a client.”
The former Merrill banker is advis-
ing the bookmaker BetFred in its bid
for government bookmaker the Tote.
(“A whole load of big banks would
Russian coking coal firm Koks was a
blow for all advisers, namely UBS
(Pavel Ilive), VTB Capital (Alex
Metherell) and Citi’s Steve Kale. But
let’s not assume it means curtains for
goes to plan, advisers at Morgan
Stanley, Credit Suisse and Troika
Dialog should be knocking back the
vodkas by the weekend.
david.hellier@cityam.com

Gold prices
boost profit
at Randgold
with expanding its Loulo mine this
▲

MINING
BY MARION DAKERS
RANDGOLD Resources was one of the
biggest risers in the FTSE 100 yesterday
after soaring gold prices gave its fourth-
quarter results a boost.
Gold sales for the quarter rose 25 per
cent on last year to $145m (£90m),
despite turbulent elections in the Ivory
Coast hitting production at Randgold’s
Tongon mine.
The firm said the 23,400 ounces of
gold produced at Tongon would have
added $21.7m to annual profits.
During 2010, Randgold produced
316,539 ounces of gold, or 35 per cent
less than 2009.
But Randgold’s pre-tax profit for the
last three months of 2010 was $50m,
year, having brought in experienced
engineer Ted de Villiers to oversee new
underground exploration at the site in
Mali.
Overall, costs during the quarter
rose 13 per cent over the year due to dif-
ficulties at the flagship Loulo mine,
including power cuts and higher trans- Discover a new world of opportunity.
portation costs.
“Loulo had its share of problems in
2010 but its total production of 316,539
Offshore banking for expats.
ounces for the year was in line with
management’s updated forecast,” said 9JGPKVEQOGUVQOCPCIKPI[QWTƂPCPEGUDCPMKPIQHHUJQTGECPJGNR
chief executive Mark Bristow.
Randgold shares closed up 2.6 per [QWFKUEQXGTCYQTNFQHDQVJUGEWTKV[CPFQRRQTVWPKV[
cent at £51.10 yesterday.
9GJCXGQXGT[GCTUoGZRGTKGPEGKPJGNRKPIKPFKXKFWCNURTQVGEVCPF
ANALYSIS l Randgold Resources
6,500 p ITQYVJGKTYGCNVJKPVJGUGEWTGQHHUJQTGNQECVKQPQH,GTUG[QPGQHVJG
up 43 per cent compared to last year, YQTNFoUOQUVTGURGEVGFKPVGTPCVKQPCNƂPCPEKCNEGPVTGU
on revenues of $144.8m. 6,000
The price of gold rocketed from less 5,110.00
than $1,100 per ounce to more than 7 Feb #PFCNQPIYKVJCYKFGTCPIGQHQHHUJQTGRTQFWEVUCPFUGTXKEGUYG
5,500
$1,400 in 2010, as investors piled into CNUQJCXGSWCNKƂGFGZRGTVUKPMG[GZRCVNQECVKQPUYJQECPRTQXKFG
what is seen as a safe asset.
Randgold expects to produce up to 5,000 URGEKCNKUVJGNRCPFCFXKEG
790,000 ounces in 2011, representing a
70 per cent increase on last year. 4,500
$CPMKPIQHHUJQTGYKVJ*5$%ECPRTQXKFG
The firm also hopes to press ahead 8 Nov 26 Nov 16 Dec 10 Jan 28 Jan

r 2QVGPVKCNVCZCFXCPVCIGU
ANALYST VIEWS: HAS RANDGOLD RESOURCES r /WNVKRNGEWTTGPE[DCPMKPI

TURNED A CORNER? Interviews by Marion Dakers

r
r
#DKNKV[VQOQXGOQPG[GCUKN[CTQWPFVJGYQTNF
'ZRCVYGCNVJOCPCIGOGPVUQNWVKQPU

DMITRY KALACHEV | CANACCORD GENUITY Discover how to protect and grow your wealth offshore

“ We knew this would be a challenging quarter, but the firm

thinks the Ivory Coast issues will be resolved this year.

JOHN MCGLOIN | COLLINS STEWART ”

Call: +44 (0) 1534 616079
Visit: www.offshore.hsbc.com
Search online: Why HSBC offshore

“ Randgold is mid-transition from a medium-sized miner

with open pits to a massive underground miner.

CHARLES KERNOT | EVOLUTION SECURITIES ”

Issued by HSBC Bank International, a trading name of HSBC Bank International Limited, HSBC House, Esplanade, St Helier, Jersey JE1 1HS. HSBC Bank
International is regulated by the Jersey Financial Services Commission for Banking, General Insurance Mediation, Investment and Fund Services
Businesses. Licensed by the Guernsey Financial Services Commission for Banking, Collective Investment Schemes and Investment Business. Licensed by
VJG+UNGQH/CP(KPCPEKCN5WRGTXKUKQP%QOOKUUKQP&GRQUKVUCPF+PXGUVOGPVUOCFGYKVJPQP7-OGODGTUQHVJG*5$%ITQWRFQPQVDGPGƂVHTQOVJG7-
Financial Services and Markets Act 2000, including the Financial Services Compensation Scheme. However, HSBC Bank International Limited is a member
of the Depositors Compensation Scheme as set out in the Banking (Depositors Compensation) (Jersey) Regulations 2009. HSBC Bank International Limited
is a participant in the Guernsey Banking Deposit Compensation Scheme. The Scheme offers protection for ‘qualifying deposits’ up to £50,000, subject to

“
EGTVCKPNKOKVCVKQPU6JGOCZKOWOVQVCNCOQWPVQHEQORGPUCVKQPKUECRRGFCVKPCP[ƂXG[GCTRGTKQF&GRQUKVUOCFGYKVJQWTQHƂEGUKPVJG
Isle of Man are protected by the Isle of Man Compensation of Depositors Regulations 2008. For further information on these schemes, please visit the
Important Information section on our website www.offshore.hsbc.com/1/2/important-information. Copies of our Terms and Conditions and Audited
There remains considerable uncertainty over Randgold’s

”
Accounts are available on request. Approved for issue in the UK by HSBC Bank plc. To help us to continually improve our service and, in the interest of
security, we may monitor and/or record your communications with us. © HSBC Bank International Limited 2011. All Rights Reserved.
immediate outlook in Ivory Coast. MC8463/AC20626/SJ/2206547
 12 News
Fears of City
exodus from
Non-dom plan
POLITICS
▲
BY RICHARD PARTINGTON
GOVERNMENT plans for a crackdown
on “non-doms” could hit Britain’s eco-
nomic recovery and cause an exodus
of wealth creators from the City, tax
experts warned yesterday.
Chancellor George Osborne is con-
sidering plans to introduce a flat-
rate levy for the 120,000 non-doms –
people residing in the UK, but not
domiciled here to avoid paying UK
tax on their foreign earnings – in an
extension of a punitive tax regime
introduced by former Prime
Minister Gordon Brown.
International mobility partner at
PricewaterhouseCoopers Sean Drury
said: “If we reduce the tax benefits for
foreign nationals working in the UK,
they’re going to think twice about
coming here. There is a risk – if there
is a large outflow of non-doms – that
actually the tax take would reduce.”
He added: “This is yet another round
of discussions around non-dom taxa-
tion. The community is looking for a
settled regime in order to make long
term decisions about location.”
The crackdown on the super rich
comes as the government plans
“investor visas” to make it easier for
multimillionaire foreigners to live and
invest in Britain.
Drury warned the changes sent
Super Saver
SALE!
Hurry, Book your
half term break now!
For travel from
18 February to
31 March 2011
Available to book now until midnight on 8 February 2011. Offer valid on 300,000
selected seats across our European network for travel from 18 February to
31 March 2011 inclusive. Prices, although discounted, may rise during the promotional
period. Variable charges for hold baggage apply and some payment methods attract
a handling fee. See website for details.
“conflicting messages” to wealthy
businessmen, which could reduce
Britain’s status as an attractive destina-
tion for international investors.
Gordon Brown introduced a £30,000
annual charge for non-doms who have
lived in Britain for seven years or more
in 2007.
However, the levy has been seen as a
failure after it raised only £162m and
resulted in 16,000 rich businessmen
leaving the country.
In opposition, George Osborne advo-
cated a levy of £25,000 per year for all
non-doms in order to raise as much as
£3.5bn for the Treasury.
Any attempt to impose a new,
stricter regime would hit high profile
non-doms, including Conservative
party donor Lord Ashcroft.
Harsher charges could however help
coalition plans for an increase in the
basic income tax threshold, in a devel-
opment that would be seen as a win
for the Liberal Democrats.
Nick Clegg’s party campaigned at
the general election to raise the basic
income tax threshold to £10,000 and
has also called for non-dom tax loop-
holes to be closed.
The Treasury estimates it will
receive £350m for the last tax year
from non-doms under the present
regime. This is on top of the approxi-
mately £4bn the Treasury already
receives in UK income tax each year.
000
s
300,t s acros
sea ope
Eur
ENDS
MIDNIGHT
TONIGHT
M&S POACHES NEW ONLINE BOSS FROM TESCO
MARKS & Spencer has poached Laura Wade-Gery from supermarket group Tesco to head
its internet business, underscoring new boss Marc Bolland’s commitment to growing
sales online. Wade-Gery will join as executive director of multi-channel and e-commerce
as the retailer aims to double online sales by 2013-14. Picture: Micha Theiner/ CITY A.M
@
888: Ladbrokes deal is on track
▲
GAMING
ONLINE gaming firm 888 said yester-
day that it remains hopeful of being
taken over by rival Ladbrokes after
reporting better-than-expected fourth-
quarter revenue.
@
The group said operating profit
increased 18 per cent on the previous
quarter to $71m (£44m).
The performance was boosted by a
turnaround in the performance of the
group’s poker business following a
relaunch in the middle of last year.
888 was hit hard by a sharp decrease
LOSING YOUR HAIR?
@ At The Wimpole Clinic, one
THE WIMPOLE CLINIC
MORE NEWS Hannah House, 1 1-16 Manc hester Stre et, London W1U 4DJ
IT CAN BE RESTORED!
ONLINE
www.cityam.com
CITYA.M. 8 FEBRUARY 2011
AstraZeneca
cancer drug
fails its trials
▲
PHARMACEUTICALS
BY JULIAN HARRIS
ASTRAZENECA has dropped its exper-
imental prostate cancer drug ziboten-
tan from the late stages of trials, it
said yesterday.
The pill failed efficacy tests follow-
ing a review by the Independent Data
Monitoring Committee (IDMC).
The withdrawal of the product is a
blow to the UK’s second largest drug-
maker, which has also seen trial fail-
ures for separate cancer drugs
recentin and vandetanib.
The company is now pinning hopes
on the drug passing an alternative
trial, in which it is combined with
chemotherapy.
Prostate cancer is the second most
common cancer in men.
“While R&D is becoming more sci-
entifically challenging, governments
are adding ever greater layers of regu-
lation to clinical trials, driving up
costs and development times,” com-
mented Philip Stevens of research con-
sultancy the Covent Garden Writers
Group.
ANALYSIS l AstraZeneca
3,200 p
2,957.00
7 Feb
3,100
3,000
2,950
8 Nov 26 Nov 16 Dec 10 Jan 28 Jan
in demand for online poker, seeing its
share value fall a staggering 58 per cent
over 12 months.
Chief executive Gigi Levy said: “Our
marketing activities have driven record
numbers of players to our sites, and
growth was achieved across our busi-
ness lines. We are very pleased with the
results delivered during the last quar-
ter of 2010, especially the record 18 per
cent quarterly sequential growth.”
He added that negotiations with
Ladbrokes are continuing and there are
no major obstacles in the way of a deal,
contradicting claims the two sides
could not agree on a price.
of the leading hair transplant
centres in Europe, Dr. Michael
May F.R.C.S. has pioneered a
permanent solution to male
pattern baldness using
advanced follicular unit
hair transplant techniques.
For your FREE consultation
with Dr May call today on:
020 7935 1861
w w w.wimpolec linic.c om
14 Consumer News
HAWKPOINT
ALTIUM CAPITAL
HAWKPOINT was the lead adviser
for Moss Bros on the Boss deal.
Altium Capital was also involved in
the negotiations which, because of
the long relationship between the
two retailers, went smoothly.
As a Boss franchisee, the team at
Moss knew their counterparts well
and the price and details of the sale
were agreed by the two parties
without any posturing or tough talk-
ing, said those close to the deal. The
fact that Moss will still stock some
Boss items in its stores will see the
relationship continue in some form.
Hawkpoint advises corporates, finan-
cial institutions, private equity hous-
es and governments throughout
Europe. The company employs 100
staff in London, Paris and Frankfurt.
Meanwhile international investment
bank Altium was also in the back-
ground, helping the deal through.
It specialises in acquisitions and dis-
posals. Moss Bros chief executive
Brian Brick described the negotia-
tions as like “dealing with friends” as
the agreement was signed and
sealed without any fuss.
Brian Brick breathes
new life into outfitter
▲
PROFILE
BY JOHN DUNNE
BRIAN Brick is in the middle of a
turnaround plan to restore Moss
Bros to health after the ailing 88-
year-old retailer lost its way.
His reputation in the clothing
industry is that of an effective, low-
key retailer with an eye for detail.
The scale of his task was shown
by a pre-tax loss of £3m in the first
six months of 2009. The perform-
ance of the hire shop was in partic-
ular hit by the downturn in
corporate hospitality.
But Brick is an experienced retail-
er who built up a family business.
In 1985 Brick and his brother
Alex took over his father’s
menswear business and re-branded
it “Suits You”.
They built this into a multi-
brand menswear business and sold
SRG (Speciality Retail Group) to
Gresham Private equity in 2005.
SRG was the parent company of
Suits You.
Moss Bros in
Brick became a non-executive
director at Moss Bros in
September 2008, and chief execu-
Boss sell-off
tive in January 2009. He took the RETAIL
▲
post after the former chief execu- BY JOHN DUNNE
tive Philip Mountford had departed
and Moss Bros MOSS BROS yesterday sold its 15 Hugo
had also faced Boss outlets in a move to concentrate
an aborted more on its own brands.
£ 4 0 m The £16.5m deal sees Hugo Boss tak-
takeover by ing back the stores, two of which are in
the now the City.
defunct Moss Bros, which also trades as
Icelandic Savoy Taylors Guild and Cecil Gee, has
retail investor run Hugo Boss stores under franchise
Baugur. since 1995.
Brick lives in But its chief executive Brian Brick is
Stanmore, aiming to transform the company
Middlesex. through changing product ranges and
cost cutting.
Meanwhile, like-for-like sales rose by
seven per cent in the 26 weeks to 29
January, the retailer said yesterday.
Brick said: “The company is going in
the right direction.
“We have the right product ranges
now and we are concentrating on what
BRIAN BRICK we are good at.
“That’s why we have sold the Boss
@
NEWS | IN BRIEF
Comet job consultation starts
Electricals retailer Comet – which will
shut 14 of its service centres – yesterday
begun consultations with 411 affected
staff as it seeks to make redundancies.
Among those sites affected include the
electrical giant’s customer service centre
in North Lanarkshire with the loss of 40
jobs. The company is centralising its dis-
@
tribution network in a drive to be more
efficient in the tough consumer climate.
MORE NEWS
ONLINE
www.cityam.com
CITYA.M. 8 FEBRUARY 2011
franchises, so we can concentrate on
what we do best and that is formal
wear.”
However, Moss said it would contin-
ue to stock some Boss lines in its own
stores.
The deal means that Moss Bros is
now operating debt free.
Brick said that the money generated
by the sale would be used to revamp
some stores and open others across the
UK. “We are on the lookout for more
space,” he added.
ANALYSIS l Moss Bros
26 p
27.00
25 7 Feb
24
8 Nov 26 Nov 16 Dec 10 Jan 28 Jan
Staff to work on Royal Wed day
About 400 staff at a floor company have
been told to work on Royal Wedding day,
even though the government has
declared it a bank holiday. The GMB
union said that Lancashire-based
Interfloor has told staff that 29 April will
be treated "as a normal working day".
Anyone wanting the day off must
request to take the day from their holi-
day entitlement, the union said.
CITYA.M. 8 FEBRUARY 2011
HAVE YOU CUT YOUR SPENDING BECAUSE OF THE VAT RISE?
Interviews by Marion Dakers
Save or Borrow peer to peer at RateSetter.com
ALLISTER AUGUSTIN |
NOMURA
“I’ve got a quite a big family, and we
have noticed an extra £15 or so on
the shopping every week, although
this is not entirely down
to the VAT rise. The rise
is one of many things
that’s costing
me.”
London set to
escape house
price slump
▲
HOUSING
BY JULIAN HARRIS
THE UK’s housing market slump has
continued into this year, with
demand, supply and prices all drop-
ping in January, it was revealed today.
However, London looks set to buck
the trend. Prices in the capital are
expected to increase over the next
three months, according to the latest
Royal Institution of Chartered
Surveyors (RICS) survey.
“There is a very clear regional pat-
tern emerging with London seeing a
greater level of price resilience,” said
RICS’s Ian Perry, “while in much of
the north and midlands, the market
remains under greater pressure.”
Surveyors expect the number of
sales in the capital to grow over the
coming months.
Overall, the market’s downward
trend is beginning to slow, suggesting
it will soon bottom out. The propor-
tion of surveyors reporting a drop in
prices fell to 37 per cent in January,
from 50 per cent in December and 53
per cent in November.
A majority – 56 per cent – reported
Euro falls on back Bank of Japan
of German data urges debt cuts
▲
EUROZONE ECONOMY
THE euro dropped to a two-week low
against the dollar yesterday slipping
0.2 per cent to $1.3551, after month-on-
month German industrial orders fell
by 3.4 per cent in December.
The soft data from the Eurozone’s
powerhouse economy prompted
investors to book profits after the
euro’s new year rally. But, German new
orders were up by almost 20 per cent
compared to December 2009, and the
monthly data was an “expected correc-

-0/%0/
tion” following November’s surge,
according to ING’s Carsten Brzeski.
“German industry’s positive trend is
unlikely to reverse,” he said.
Economics 15
individual countries if they pose a risk to
NEWS | IN BRIEF the wider system, he said. The ESRB will
flag emerging problems, he said,
IN ASSOCIATION WITH although the body is toothless to enforce
All time high for pension assets its verdicts on individual states. And
Pension fund assets in the world’s 13 Trichet warned against the policy of
major markets hit a record high of $26
trillion (£16 trillion) last year, it was
forcing private sector investors to take
on some losses from debt restructuring,
revealed yesterday. Assets grew by 12 a procedure known as “haircuts.”
www.RateSetter.com Customer Phoneline: 08442490115 per cent in 2010, after a 17 per cent rise Policymakers should simply “apply the
in 2009. The uptick comes after the programme” of rescue packages, he said.
JOHN LAUDRUM | STEWART GABRIEL | downturn in 2008 when assets dropped “In the case of haircuts, the short-term
RFIB GROUP ROCELA by 21 per cent, according to the consul- investor makes money, the other loses.”
tancy Towers Watson. Global pension
“I have spent a bit less because of it. “I have definitely noticed prices assets now amount to 76 per cent of Consumer credit spikes in US
I don’t buy as many DVDs or treats. going up, but it’s a combination of global GDP, substantially higher than the American consumers boosted their cred-
I think the government should lower things that make it more 2008 level of 61 per cent. it card debt in December for the first
time since August 2008, official data
the VAT and focus on expensive. We are prob- Trichet praises Eurozone watchdog showed yesterday. Revolving credit card
helping companies to ably spending less, Europe’s new economic super-watchdog debt climbed by $3.5bn (£2.16bn), while
was talked up by European central bank total credit outstanding climbed $6.1bn,
grow more and get because of the president, Jean-Claude Trichet, yester- well above the expectations of most
more people into wider context of day. The European Systemic Risk Board economists. “We expect the headline
(ESRB), of which Trichet is also presi- series to increase further in the coming
work.” the recession.” dent, will single out problems bubbling in months,” said Barclays’ Theresa Chen.
8*4)
:06
8&3&
)&3&
no change in house prices.
There remain far more surveyors
reporting a fall in prices, 37 per cent,
than those reporting a rise, six per
cent, creating a headline balance of
-31 per cent. However, this was the
most positive the balance has been
since July last year, RICS said.
And the fall in both demand and
supply also looks set to level out, pos-
sibly stoking a rise in activity for 2011.
The fall in new vendor instructions,
which indicate supply, slowed to a
balance of -3 per cent, up from -14 in
December. Demand is still falling, at -
7, yet this is an improvement on
December’s balance of -12.
ANALYSIS l Property sales
Average sales
per surveyor
40
over 3 months
30
20
10
Source: Royal Institution of Chartered Surveyors
1997 1999 2001 2003 2005 2007 2009
#00,
:063
5*$,&54
/08
(00%
4&"54
'30.
ƒ


'03
"--
1&3'03."/$&4
ASIA ECONOMY
DEFICIT cuts and deregulation are
required to boost economic growth in
Japan, the Bank of Japan’s governor
Masaaki Shirakawa said yesterday.
“Japan’s fiscal situation is of course
in very bad shape,” he said. “As history




shows, no country can continue to run
fiscal deficits forever.”
The Bank could increase its bond
XXXNBNNBNJBDPN
purchases if the economic situation
deteriorates further, he said, yet
warned that this could give markets 13*/$&
0'
8"-&4
5)&"53&
the impression that it was directly
financing government debt.
Shirakawa was cautiously optimistic
over Japan’s economic outlook.
 16 Technology and Media News
Vodafone to sell the Nexus S Google Almost half of FTSE 100
phone after deal with Carphone ends firms now use Twitter
▲
TELECOMS
BY STEVE DINNEEN
THE Google-branded Nexus S smart-
phone will end its exclusive run with
the Carphone Warehouse, with
Vodafone revealing it will start stock-
ing the handset.
Vodafone did not confirm when
the handset will be available but it is
understood it could be in UK stores as
soon as March. City A.M. revealed last
year the handset, manufactured by
Samsung, would go on sale in an
IN FOCUS: WHAT THE DEAL TO BUY THE HUFFINGTON POST MEANS
AOL splashes
$315m to buy
the HuffPo
▲
MEDIA
BY STEVE DINNEEN
AOL yesterday announced it has
bought fast-growing news source the
Huffington Post in a deal worth
$315m (£196m).
As part of the deal Arianna
Huffington, co-founder and editor in
chief of the US-based media outlet,
will take charge of all of AOL’s edito-
rial content.
AOL chief executive
Armstrong said the deal gives his
firm “an ability to accelerate our
Tim
core strategy, accelerate the advertis-
ing strategy, and put a different
brand ability in content media
space.”
AOL hopes to drive the site’s rev-
enues from $31m last year to around
$60m in 2011. Ian Maude, online
analyst for Enders Analysis told City
A.M. the deal fits AOL’s strategy of
moving towards a low-cost, editorial-
ly driven content base but warned
the price seems high.
He said: “AOL is obviously assum-
ing it can grow its audience and
Don’t forget the ghost of Bebo past
ANALYSIS | AOL has a poor record when it comes
to transformational deals. By David Crow
YOU can’t blame AOL boss Tim
Armstrong for pursuing so-called
“transformational” deals: he has little
option. Once the undeniable king of
the web, the firm is now heavily
reliant on subscription revenues
from its internet service, which are
fast disappearing.
The surprise is that almost 4m
Americans are still willing to pay an
average of $18 (£11) a month – on top
of the fee they pay their broadband
provider – to access the internet with
AOL. In 2010, those customers were
exclusive deal with Carphone
Warehouse and its partner Best Buy,
despite outgoing Google chief execu-
tive Eric Schmidt claiming there
would be no follow-up phone to the
original Nexus One. The partnership
with Carphone Warehouse was seen
by analysts as an experiment with its
distribution model. The original
Nexus was tied to an exclusive deal
with Vodafone in the UK. Despite
building a cult following the handset,
built by HTC, failed to make a splash
when it was released last year.
advertising revenue but even then
this deal seems pricey.
“Arianna is clearly a very impor-
tant factor in the deal. Putting her in
charge of editorial is placing a huge
amount of faith in her.
“In short, it’s a successful, growing
business that has attracted a lot of
attention. It isn’t cheap but neither
is it Armstrong’s Bebo moment.”
AOL suffered sharp declines in
advertising sales and dial-up sub-
scriptions in the fourth quarter of
2010, driving overall revenue down
26 per cent. to just $2.4bn.
The deal, which places a 10 times pre-
mium on the Huffington Post’s 2010
revenues, comes after a string of disas-
trous acquisitions by AOL.
Topping the list is its failed
$350bn merger with Time Warner,
which saw astronomical writedowns
before AOL was spun off in 2009.
The firm was also badly stung
when it bought Bebo for $850m in
2008, before offloading it just two
years later to Criterion Capital
Partners for a rumoured $10m.
worth around $1bn in sales, a stagger-
ing 42 per cent of overall revenues.
But AOL’s US customers are fast wak-
ing up. Between 2009 and 2010, the
firm lost around 1m subscribers,
worth around $400m in revenues. At
this rate, the subscription business
will be gone in just a few years.
That’s why Armstrong is desperate
to build a content hub, and there are
worse places to start than with
Huffington Post, one of the more suc-
cessful online-only publications.
AOL has been here before, however.
Google and
Carphone in
mobile deal
EXCLUSIVE
▲
BY STEVE DINNEEN
THE SECOND Google
b d d
Arianna Huffington
set for huge windfall
▲
PROFILE
BY STEVE DINNEEN
THE Greek-born co-founder and edi-
tor in chief of the HuffPo – as it is
affectionately known – is in line for
a huge paper windfall after AOL
announced it will buy the firm.
While it is unclear exactly how
much Arianna Huffington will
receive – at least three venture cap-
ital firms have interests in the
HuffPo, with Oak Investment
Partners thought to own around a
quarter of the business – it is cer-
tain to considerably add to her
existing $115m fortune.
She vowed to remain with the
organisation yesterday, saying “I
want to stay forever. I want this to
be my last act.”
The self-styled media maverick
has built the organisation from a
niche content provider to one of the
most heavily visited news sites in
the US.
However, the AOL deal, which
will see her take control of all of
the firm’s editorial content, will
transform her from a respected
commentator reaching 25m users a
month, to the Svengali behind a
sprawling network of news sources
with an audience of around 270m.
The 60-year-old moved to the UK
when she was 16 and was educated
at Cambridge. She was involved in a
Who can forget the ill-fated acquisi-
tion of Bebo in 2008, which saw the
firm spend $850m on the number
three social network before selling it
for a reported $10m last year. The mul-
tiples for that deal – 42.5 times 2007
sales and 160 times ebitda – were sim-
ply ridiculous, based on massively
over-optimistic assumptions about
compound growth, which proved
incorrect. The price paid for
Huffington Post, which is expected to
post revenues of $60m this year, is less
absurd, at around 6.3 times sales.
But it is still pretty hefty for a firm
that it is said to be turning just a small
profit on such chunky revenues.
Investors will be hoping AOL learnt its
lesson last time round.
▲
TELECOMS
BY STEVE DINNEEN
ALMOST half of FTSE 100 companies
now have a Twitter account, accord-
ing to research by communications
agency The Group.
Of the UK’s elite companies, 45 per
cent have a Twitter feed, up almost 50
per cent year-on-year.
A further 25 per cent have a
Facebook page, a rise of 20 per cent, and
39 per cent have a YouTube channel.
Only 12 per cent have a corporate
10-year relationship with the late
Times columnist Bernard Levin
before moving to the US.
She was married to oil billionaire
Michael Huffington, who ran for
the senate for the Republicans, and
she later ran as an independent can-
didate for governor of California.
She was seen as a conservative
commentator until switching to a
more liberal outlook in the late
1990s.
She founded
the HuffPo
in 2005,
along with
Kenneth
Lerer, and
Jonah
Peretti.
ARIANNA HUFFINGTON
TIMELINE | THE RISE AND FALL OF AOL
1983
AOL is founded as Control Video
Corporation by William von Meister,
offering a games downloading serv-
ice. Renamed Quantum Computer
Services in 1985 and finally became
America Online in 1991.
1998
AOL buys web browser Netscape for
$4.2bn (£2.6bn). But Netscape over-
taken by Microsoft’s Internet Explorer.
2000
AOL and Time Warner announce the
world’s biggest ever merger – a
staggering $350bn deal which made
the new entity one of the biggest
firms in the world.
2000-2002
The firm is beset by problems, culmi-
nating in a quarterly loss of $54.2bn
CITYA.M. 8 FEBRUARY 2011
blog, although that represents a 200
per cent rise since last year.
The firm says the research shows
firms are warming to the benefits of
Twitter but remain wary about other
forms of social media.
Sony Ericsson demonstrated the
power of Facebook as a marketing
tool when it used the site to promote
its new Xperia Play handset – dubbed
the PlayStation Phone. The new
device will debut at the Mobile World
Congress event next week.
THE HUFFINGTON POST
DEAL BY NUMBERS
$315m The amount AOL paid
for the Huffington Post
$31m The HuffPo’s estimated
revenues for last year
$60m The revenue forecast for
the HuffPo in 2011
$20m Amount AOL will spend
on the site in “restruc-
turing costs”
25m Unique users to the
HuffPo every month
270m Estimated number of
unique global users for
AOL’s total stock of
media content
26% Fall in AOL’s advertising
revenue in the last quarter
in 2002 following massive write-
downs at Time Warner.
2008
AOL acquires social networking site
Bebo, which is popular with
teenagers, for a cool $850m.
However, rival Facebook is steadily
gaining users and soon eclipses
Bebo, which looks set to become yet
another poor acquisition.
2009
Time Warner and AOL part compa-
ny as Warner is forced to make
writedowns totalling £100bn as the
recession bites.
2010
A wounded AOL sells Bebo to
Criterion Capital Partners just two
years after buying it for a reported
sum of just $10m.
 DJXLGHWR/RQGRQ·VSUHPLHUUHVWDXUDQWV

326+ QRVK LQWKH &,7<

70

&,7<$0(;&/86,9(5($'(52))(5
-J]SYPMOIH4SWL2SWLMRXLI'MX]TEVXPEWX*VMHE]XL.ERYEV]XLIR[EMXYRXMP]SYWII4SWL2SWLMRXLI'MX]TEVX

'MX]%1ERH4SWL2SWLEVITPIEWIHXSVIQMRHEPPMXWVIEHIVWXLEXXLIWIWXIPPEVVIWXEYVERXWPMWXIHLIVIEVIEPPSJJIVMRKXLI7TIGMEP'MX]%1
GSYVWI4VM\*M\I1IRY[MXLETEMVMRKSJ%TTPIXSR)WXEXI.EQEMGE6YQTIVGSYVWI

8LMWSJJIVMWI\GPYWMZIXSEPP'MX]%1VIEHIVWPYRGLERHHMRRIVJSV[IIOWWXEVXMRKJVSQXL.ERYEV]

-RTEVXTYFPMWLIHMR'MX]%1PEWX*VMHE]
XL.ERYEV]4SWL2SWLMRXLI'MX]JIEXYVIH &SMWHEPISJ&IPKVEZME7;†
XLI½VWXWM\VIWXEYVERXWSJJIVMRKXLI7TIGMEP
%TTPIXSR)WXEXI.EQEMGE6YQTEMVMRKQIRY
&SMWHEPISJ&MWLSTWKEXI)'†

&VEWWIVMI7X.EGUYIW7;†

'LEQTSV'LEQTSV7)†

*VERGS´WSJ.IVQ]R7XVIIX7;†

,YWL;†

-R4EVXGSQMRKSYX*VMHE]XL*IFVYEV]
4SWL2SWLMRXLI'MX]XLIWIEVIXLI 0ERKER´W&VEWWIVMI;†
RI\XWM\VIWXEYVERXWSJJIVMRKXLI7TIGMEP
%TTPIXSR)WXEXI.EQEMGE6YQTEMVMRKQIRY
0I4SRXHI0E8SYV7)†

3VVIV];†

4IEVP6IWXEYVERXERH&EV;'††

4SVXEP&EVERH6IWXEYVERX)'†

5YMVMREPI7;†

$QGUHPHPEHUIHOORZJRXUPHWVDQGUHDGHUVRI3RVK1RVKLQWKH&LW\WKLVRIIHU
LVRQO\DYDLODEOHIRUZHHNVDQGLWVWDUWHGODVW)ULGD\
6RHQMR\WKHWDVWHRI$SSOHWRQ(VWDWH-DPDLFD5XPDQGWKHVHIDEXORXV
/RQGRQUHVWDXUDQWVZKLOHWKHSURJUDPODVWV
brought to you by

 [[[TSWLRSWLHMRMRKGSQ
 18 News
Norilsk told to shelve buyback Industrial unrest leaves
MINING
▲
BY HARRY BANKS
NORILSK NICKEL, the world’s largest
nickel and palladium producer, said
yesterday that it had suspended a
buyback offer for more than seven
per cent of its shares following a
court order.
A St Christopher & Nevis court
issued the order following a legal
complaint by Rusal.
Norilsk Nickel’s Corbiere unit,
which made the $252 (£156) per share
offer, said it will contest the decision.
“Corbiere does not believe that
there is a basis for granting the
Rexam stock
jumps on talk
of £200m sale
MANUFACTURING
▲
BY HARRY BANKS
SHARES in Rexam soared yesterday
after the British can maker con-
firmed plans to sell its beverage and
specialties arm in a deal that could be
worth £200m.
The shares rose nearly five per cent
in early trading, before closing the
day up 3.4 per cent from Friday’s
close at 368.9p.
Rexam is believed to have appoint-
ed Barclays Capital as advisers on the
deal, and final bids for the business
unit – which makes lids for drink and
food containers – are expected this
week. Bankers have long said Rexam
is an attractive target for takeover.
A Rexam spokesman said that the
company was considering options for
the unit.
Rexam was the top FTSE 100
climber just ten days ago when its
stock rose following news that it had
completed contract negotiations in
North America, and signed a long-
term contract with its largest
Brazilian customer.
Following the completion of these
negotiations the company forecast
that overall operating profit in its
Beverage Can North America division
Asia gives profit boost to Suzuki but
competition in India freezes forecasts
AUTOMOTIVE
▲
BY HARRY BANKS
SUZUKI Motors, Japan’s No4
automaker, posted a 31 per cent rise
in quarterly profit yesterday on brisk
sales in Asia, and stuck to its conser-
vative forecasts as competition inten-
sifies in the key Indian market.
Suzuki has enjoyed robust earnings
growth compared with most domes-
tic rivals thanks to its limited expo-
sure to the stronger yen and heavy
weighting in India, where majority-
injunction and intends to contest the
order and the injunction relief
granted,” it said in a state-
ment.
The court case in the
Caribbean Federation of
St Christopher and
Nevis is part of a larger
battle between Norilsk
Nickel shareholders
Oleg Deripaska and
Vladimir Potanin.
Deripaska (pictured),
who controls a 25 per cent
stake through aluminium giant
Rusal, has clashed frequently with
Potanin over the company’s strategy
in 2011 is expected to remain compa-
rable to that in 2010, as improved
pricing, new customers, continued
growth in specialty cans and further
cost control initiatives will offset the
impact of lower net 12 ounce vol-
umes.
As a result of the negotiations,
Rexam has diversified the customer
base for all can sizes and has signed
medium-term contracts to recover
most of the 2011 volume loss by
2013.
The company is scheduled to
release its preliminary results for
2010 on 23 February.
In a trading update from
November, chief executive Graham
Chipchase said the company expected
its results in the second half of 2010
to be similar to those of the first.
ANALYSIS l Rexam 365.80
360 p 7 Feb
340
320
300
8 Nov 26 Nov 16 Dec 10 Jan 28 Jan
held unit Maruti Suzuki India sells
every other car.
But falling margins in India due to
rising raw materials prices and slow-
ing growth in the country’s car mar-
ket have weighed on Suzuki’s shares,
which have been the worst performer
among Japanese auto stocks in the
past three months.
“The trend of rising sales and prof-
its remains, but the pace of growth
has slowed compared with the first
and second quarters,” senior operat-
ing officer Takao Hirosawa said, cit-
and the composition of its board.
Sources have said the cash-rich
miner might scrap its 2010
dividend to fund the share
buyback, which will cost
close to $3.5bn.
This is seen as a blow
to Deripaska, as he will
not receive any funds to
pay down debt at Rusal.
Norilsk, whose board
and management are
seen as closely aligned with
Potanin’s interests, sought in
December to end the dispute by
offering Deripaska $13bn for his
stake.
AL GORE LAUNCHES FUND FOR ASIA STOCKS
Qinetiq secures early refinancing to aid
growth during defence spending cuts
DEFENCE
▲
DEFENCE technology group QinetiQ
said yesterday it has completed the
early refinancing of its £275m credit
facility to help the firm advance amid
looming cuts to government defence
budgets and an ongoing restructur-
ing.
FTSE 250-listed QinetiQ has
renewed the revolving facility, which
ing margin pressure from higher raw
materials prices in India.
In the October-December third
quarter, operating profit at the maker
of the SX-4, Swift and other compact
cars came to 23.64bn yen (£178.6m),
up 31 per cent from a year earlier and
roughly in line with estimates.
That brought its nine-month profit
to 92.46bn yen, just shy of its full-year
forecast of 100bn yen. A survey of 21
analysts put the profit at a much bet-
ter 115.8bn yen for the year to March
31, up 46 per cent from last year.
Aer Lingus paying cost
AVIATION
▲
IRISH airline Aer Lingus carried about
a fifth fewer passengers in January
than a year ago on the back of route
cuts and a dispute with cabin crew
over longer working hours.
Aer Lingus said yesterday 552,000
passengers were booked to fly with it
in January, a 17 per cent decrease on
last year, and flight cancellations
meant the numbers who actually
flew that month were four per cent
below the booking levels.
was due to mature in August 2012,
with a syndicate of banks made up of
Barclays, HSBC, RBS, Bank of
America, JP Morgan Cazenove and
UBS.
QinetiQ chief executive Leo Quin
said in a statement: “The early re-
financing of QinetiQ’s credit facility
demonstrates the improved strength
of the Group’s balance sheet and
marks another important milestone
NEWS | IN BRIEF
SolarWorld expects sales rise
SolarWorld, Germany’s second-biggest
solar company by market value, expects
sales to rise this year as it looks outside
its shrinking home market, particularly to
the US. “In the current environment, giv-
ing a sales outlook is tough,” SolarWorld
chief executive Frank Asbeck said yester-
day, pointing to an expected drop in
prices for modules and cells, the solar
industry’s main products. The company
posted a 2010 operating profit above
expectations and proposed a higher divi-
dend, boosting its shares.
Europe boost for lock maker
Swedish Assa Abloy, the world’s biggest
lock maker, expects some growth in its
main European market this year as con-
struction expands in Germany and other
CITYA.M. 8 FEBRUARY 2011
A three-week stand-off with 215
cabin crew over longer working hours
ended on Friday with crew agreeing
to work the new rosters in exchange
for clarity over meal breaks, time off
and the length of tours of duty.
Aer Lingus had raised the number
of annual flight hours to 850 from
830 as part of cost-cutting measures
to return it to profitability.
The company’s booked load factor –
a measure of how well an airline fills
its planes – fell by 3.6 points in
January to just under 64 per cent.
AL GORE’S
Generation
Investment
Management is
starting a $500m
(£310m) fund to
invest in Asian
stocks.
Generation is look-
ing to invest in
countries including
China and India to
correspond with
Asia’s demands for
natural resources
and its impact on
the global economy
Picture: REUTERS.
in our self-help programme.”
QinetiQ said in its interim man-
agement statement last week that its
principal markets on both sides of
the Atlantic have remained under
pressure thanks to government
efforts to reduce deficits.
The firm is also mid-way through a
two-year “self-help” programme
designed to streamline the business
following an annual loss in 2009 / 10.
strong economies. Posting 15 per cent
growth in fourth-quarter core earnings,
in line with expectations, the company
said growth in some areas would offset
the impact of government austerity
measures in other markets. “We have
Germany where we see a good economic
situation, we have Sweden, we have
Finland – so we think we ought to be
able to see some growth in Europe,” said
chief executive Johan Mohlin.
Uralkali-Slivnit merger approved
Russian potash miner Uralkali said yes-
terday that Silvinit shareholders had
voted to approve their merger, which will
create the world’s second largest produc-
er of the soil nutrient. Uralkali said 90.9
per cent of the votes cast at a meeting
on Friday supported the merger.
CITYA.M. 8 FEBRUARY 2011 News 19

CITY MOVES | WHO’S SWITCHING JOBS Edited by Juliet Samuel in association with

JP Morgan Private Bank
Aastha Gurbax (pictured) has joined the pri-
vate banking arm of JP Morgan, based in
London. She will be a vice president on the pri-
vate banking team, reporting to Olivier de
Givenchy. Gurbax has previously worked at
Morgan Stanley as an adviser for high net
worth families and charities. Formerly, she was
a tax consultant at PricewaterhouseCoopers
and Deloitte and Touche, before which she
worked in forex and specialised derivatives.
head of the firm’s UK insurance busi-
PricewaterhouseCoopers ness, succeeding Andrew Kail. He will
Mark Stephen has been promoted to now lead PwC’s insurance work, help-
ing businesses adapt to changing regu-
lations. Stephen has been with the firm
for 20 years and has specialised in the
insurance industry.
RBC Capital Markets
The corporate banking arm of Royal
Bank of Canada has added three direc-
tors to its global equities platform in
Europe.
Matthew Penton has joined as a
director covering the industrial sector.
He was previously at Nomura. Daniele
Calabrese has also joined as a director
and sales trader covering Italian
accounts, having worked in the past at
RBS/ABN Amro and Bear Stearns.
And Hugh Kingsmill Moore has
joined the firm as a director covering
renewables and utilities. He was most
recently at Nomura Code and has
worked at ING Barings, Greig
Middleton and Nomura International.
Merrill Lynch
Bank of America/Merrill Lynch Wealth
Management has appointed Milan
Duschka as a financial adviser.
He joins the firm from ABN AMRO’s
private bank Mees Pierson and will be
reporting to Geoffrey Bruyn in his new
role, based in Amsterdam.
LaSalle
LaSalle Investment Management has
opened a new Dubai office to be led by
Nick Brook, who has been based in
LaSalle’s London office and focused on
the Middle East since 2002.
Reed Smith
The law firm has appointed a new sen-
ior partner: Scott Cameron, to the
Europe and Middle East corporate
group in its London office. He is US-
qualified and specialises in capital mar-
kets, acting for firms on all aspects of
SEC regulation and on many cross-bor-
der transactions.

To appear in CITYMOVES please email your career

SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT +44 (0)20 7557 7245
updates and pictures to citymoves@cityam.com morganmckinley.com

BEST OF THE BROKERS To appear in Best of the Brokers email your research to notes@cityam.com

ANALYSIS l Royal Dutch Shell 2,169.00 ANALYSIS l Diageo 1,248.00 ANALYSIS l Kofax 440.00
p
7 Feb 1,260 p 7 Feb p
7 Feb
2,250 420

1,220 400
2,150
380

2,050 1,180 340

300
1,950 1,140 260
12 Nov 6 Dec 24 Dec 14 Jan 4 Feb 17 Nov 7 Dec 29 Dec 19 Jan 17 Nov 7 Dec 29 Dec 19 Jan

ROYAL DUTCH SHELL DIAGEO KOFAX

Deutsche Bank rates the oil major “buy” with a target price of £25.50.
The broker was frustrated by Shell’s results last week, believing that its
refining branch is stubbornly underperforming. Deutsche expects that the
first half of 2011 will be volatile, as new projects ramp up costs, but it
does not foresee further cash-raising and hopes revenues will strengthen
later in 2011.
Nomura rates the drinks firm “buy” and has a target price of £15.50. The
broker believes Diageo could be interested in taking on Fortune’s Jim
Beam, Sauza and Makers Mark brands as part of its M&A spending spree,
with the potential to enhance earnings per share immediately thanks to
the firm’s low gearing. Nomura also expects five per cent organic growth
when Diageo reports first-half results this Thursday.
Panmure Gordon rates the technology group “hold” and has increased its
target price from 259p to 320p. Kofax’s recent interim results were better
than expected, and Panmure is now forecasting 15 per cent growth in its
software business. However, Panmure warns that Kofax must improve its
product range if it is to continue this upward trajectory that it says was
fuelled by a new enterprise sales team.

Hunger for mining shares sees Mergers drive US

FTSE stay above 6,000 level despite light volume
had a choppy start to the year, at the back of recent strength. The sector getting over all.”

THELONDON moment there is no reason to doubt

that the buyers are still happy to pick
has been supported by bullish broker
comment and persistent M&A specu- THENEW YORK Danaher rose 2.2 per cent to $49.03
while Beckman Coulter gained 10 per

REPORT
up shares on weakness – it would not
be surprising to see further gains as
the week goes on,” said David Jones,
chief market strategist at IG Index.
REPORT
lation. cent to $82.65. Ensco fell 4.2 per cent
Small-cap Lloyd’s of London insurer to $52.13 while Pride International
Chaucer said it had received takeover rose 15.7 per cent to $39.80.
approaches from an unspecified With the 1,313 level breached,

M
INERS lifted Britain’s top Miners added most points to the number of suitors, lifting its shares 17 stocks face little by way of technical

share index higher yesterday,
driven by record metal prices
and results from Randgold.
The FTSE 100 closed 53.65 points,
or 0.9 per cent, firmer at 6,051.03, its
highest finish since 18 January and
marking the fourth gain in the past
five trading days.
“A fresh year high is being eyed
with worries over the impact euro
zone debt problems and the political
troubles in the Middle East fading,”
CMC Markets head of equities Jimmy
Yates said. “It will be interesting to see
if traders have the mettle to see it
through that level (6,090.49) and hold
onto gains.”
Nicole Elliott, a technical analyst at
Mizuho Corporate Bank, said the
index was not far short of substantial
resistance levels, with January’s high
at around 6,090 and the 2006 high of
6,137 both being watched.
“All this is despite weaker-than-
expected payrolls figures last Friday,
and is a confirmation of the appetite
investors still have for shares and how
they are willing to shrug off the odd
piece of disappointing-economic
news. The next big target for the FTSE
100 is the 6,300 area, last seen in May
2008. Although shares in the UK have
index, spurred by record copper
prices and boosted by upbeat corpo-
rate results.
Randgold Resources, up 2.6 per
cent, posted a 43 per cent jump in
profit and raised its dividend 18 per
cent.
Xstrata, set to report today, gained
3.6 per cent, helped by bullish com-
ment from Citigroup and Nomura.
Rio Tinto, which reports later in the
week, was up 2.9 per cent.
Energy stocks climbed as appetite
for riskier assets strengthened among
investors, with BG Group 0.8 per cent
higher ahead of results due today.
Can maker Rexam firmed 3.4 per
cent. The company has appointed
Barclays Capital to sell its beverage
and specialties arm in a deal that
could be worth £200m.
ARM Holdings was the top blue-
chip gainer, 3.9 per cent higher, as
Numis raised the chip designer’s
price target to 660 pence on promis-
ing long-term revenue drivers.
On the downside, BT Group shed
1.5 per cent as investors locked in
profit following results on 3 February.
Meanwhile, insurers Old Mutual
and Resolution dipped 0.9 per cent
and 1.6 per cent respectively on the
per cent.
There was little key economic data
early this week for investors looking
to the Bank of England’s monthly
interest rate decision, due on
Thursday. No changes were expected
to the 0.5 per cent official bank rate
or an increase to the BoE’s quantita-
tive easing programme.
“I think we are seeing, with copper
hitting a new high, that there is con-
cern over inflation, and at some
point, if it is not this week it will be
very soon, that the Bank will raise
rates,” Capital Spreads head of sales
Angus Campbell said.
Money markets see a 10-20 per cent
chance of a rise in the official bank
rate on 10 February.
ANALYSIS l FTSE 6,051.03
6,100
5,900
5,700
5,500
17 Nov 7 Dec 29 Dec 19 Jan 4 Feb
M
ERGER activity drove the Dow
and S&P to two-and-a-half-
year highs yesterday in the
latest in a series of mileposts
that point to more gains ahead.
Buying accelerated after the S&P
500 broke through the 1,313 mark,
taking the index further into levels
that prevailed before the financial cri-
sis. More than two stocks rose for
every one that fell on both the New
York Stock Exchange and Nasdaq, but
the day's rise came on lighter-than-
average volume.
Diversified industrial company
Danaher agreed to buy medical diag-
nostics company Beckman Coulter
for about $6.8bn. Oil driller Ensco
said it would buy Pride International
for about $7.3bn.
“The size of these deals is an indica-
7 Feb tion that the buyers feel comfortable
putting that cash to work while the
companies being bought are under-
valued,” said James Dunigan, chief
investment officer at PNC Wealth
Management in Philadelphia, which
oversees $105bn.
“The level of the broader market is
reasonable, but there are these indi-
vidual situations that deserve a high-
er premium than the market is
resistance until the 1,400 level on the
S&P.
The Dow Jones industrial average
was up 69.48 points, or 0.57 per cent,
at 12,161.63. The Standard & Poor’s
500 Index was up 8.18 points, or 0.62
per cent, at 1,319.05. The Nasdaq
Composite Index was up 14.69 points,
or 0.53 per cent, at 2,783.99.
The S&P is up 4.9 per cent so far in
2011, adding to the gains it notched
mostly in the latter half of 2010. The
size and swiftness of the advance has
prompted many analysts to call for a
correction, though none has materi-
alized.
UBS raised its 2011 target for the
S&P 500 index by 7.5 per cent to 1,425
from 1,325, citing an improving out-
look for the economy and earnings.
AOL has agreed to buy The
Huffington Post for $315m. The stock
fell 3.4 per cent to $21.19.
Loews reported a better-than-
expected 16 per cent jump in profit,
sending shares of the conglomerate
up 4.5 per cent to $43.27.
Volume was light, with about 6.89
billion shares traded on the New York
Stock Exchange, the American Stock
Exchange and Nasdaq, well below last
year’s daily average of 8.47bn.
 20 CITYA.M. 8 FEBRUARY 2011

Wealth Management | Contracts for Difference

CORRECTION
TO GOLD MAY Don’t worry, even the
NOW BE OVER
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
economists are confused
The monkey isn’t sure
The major US, UK and European stock indices have either
had a good start to the year with most seeing decent
gains. Civil unrest across North Africa and fears that Picture: ALAMY
demonstrations may spread to other countries have
been waved aside by investors. Even Friday’s dismal
headline non-farm payroll number was passed off as a
weather-related aberration, while the surprise drop in
the US unemployment rate to 9 per cent offered
traders the perfect excuse to “buy the dip.”
As equities grind higher, it is the rise in commodity ANALYSIS l The performance of US 10-year Treasury
prices that is hitting the headlines. Brent crude oil yields since January 2001
appears to be bedding in above $100 per barrel, while 7 %
copper has hit fresh all time highs. The prices of
sugar, rice, wheat, cotton and corn are all soaring, 6
fuelling fears that inflation is taking hold, particularly
5
in developing countries.
But it has been a different story for precious met- 4
als. Last year gold rose 30 per cent while silver
soared 84 per cent. However, both have sold off 3
sharply in the past month leading many analysts to
Source: Tradingeconomics.com
say that a top is now in. Chart wise, both metals had 2
seemed overdue a correction for a while. Well, now Jan 2002 Jan 2004 Jan 2006 Jan 2008 Jan 2010
we’ve had one. Gold fell 8 per cent in January alone,
while silver fell over 10 per cent.
It was a vicious shake-out which forced out both
the over-leveraged and less- committed paper longs.
Donata Huggins asks what’s behind the US 10-year Treasury rally
However, the past ten days have seen a bounce lead-
ing many to hope that the correction is over. Silver

held onto support around $26.50 and never broke
below its 100-day moving average. It is now trading
above $29 per ounce. A few closes above $29.80
could set the stage for an attempt to take out its
recent highs. Gold broke below its 100-day moving
average but bounced off $1,310. It needs to break
back above $1,360 and $1,374 (its 100 and 50-day
moving averages respectively) for the bulls to relax a
bit. The fundamentals look stronger than ever with
physical demand providing solid support. Central
banks seem intent on devaluing their respective cur-
rencies in a bid to boost their relative competitive-
ness. Now inflation is taking hold, and as Ben
Bernanke seems likely to argue for further quantita-
tive easing, the bullish outlook is set to continue.
T
HE curious task of economics,”
Friedrich Hayek once said, “is to
demonstrate to men how little they
really know about what they imag-
ine they can design.” This certainly rings
true when you consider Friday’s US 10-
year Treasury yields rally. The release of
January’s US non-farm payroll data jerked
the market into action. But why it did so
is more a matter of taste.
Eric Brittan, an economist at Fathom
Financial Consulting, explains: “You have
one of two options when it comes to inter-
preting the rally: the benign view that the
US economy is getting stronger, so
investors are selling their bonds to buy
things that will make them more money
such as commodities. Or the malignant
view: you think the US economy is in real
trouble.”
Lea Tyler, an economist at Oxford
Economics, falls into the first camp: “The
payroll numbers were a disappointment
but I think people broadly think the econ-
omy is in better shape, inflation is well-
controlled and there is plenty of slack in
the system –that’s why people are selling
bonds.” This, she explains, leads her to
believe that bond prices will be biased
towards the upside in the next quarter.
STRUCTURALLY UNSOUND
Brittan, however, probably falls into the
second category, explaining that the US
economy is structurally unsound: “The
unemployment data disguises all kind of
things. For instance, the US employment
patterns used to be characterised by lots
of churn – US workers could be made
unemployed and then find another job
within a few weeks. Now the average is 38
weeks unemployed.” He says this is worry-
ing because many unemployed people
fall out of the statistics since the US only
provides unemployment benefits for 26
weeks.
Michael Hewson of CMC agrees: “The
figures are a misnomer, I reckon the real
unemployment figure in the US is closer
to 18 per cent. Analysts are reading them
wrong.” Still he thinks this means the
rally could continue.
UNMOTIVATED AND DESKILLED
Brittan warns that reading the figures
wrong can come at a high price: “When
people are long-term unemployed they
become unmotivated and deskilled, this
is what happens in Europe when a finan-
cial crisis hits. America could be adopting
European long-term unemployment pat-
terns.” This is why, he explains, he
believes Treasury yields will be range
bound, even falling, in the next few quar-
ters.
Most see yields continuing to rise, but
Contracts for difference traders will need
to tread carefully when interpreting the
non-farm payroll data. In which camp do
their allegiances fall? After all, even the
best economists sometimes have to admit
to uncertainty.

ANY WAY YOU LOOK AT IT,

IT PAYS TO TRADE WITH GFT.

Get a bonus of up to £3,000 when you
open an account with GFT* BONUS
Get a £1 rebate on every trade when you SPREAD BETS | CFDs | FOREX
come to GFT from another provider* REBATE free phone 0800 358 0864
gftuk.com
Learn about everything from market
outlook to trade psychology EDUCATION GFT Global Markets UK Ltd. is autho-
rised and regulated by the Financial
When trading CFDs, spot forex, or spread bets, you can lose more than your initial deposit. *Minimum Services Authority. CD03UK.141.012711.
trade volumes and withdrawal restrictions apply to this offer. Please see website for full details.
Open an account to see for yourself. Get started now at gftuk.com.
CITYA.M. 8 FEBRUARY 2011
Alchemy for
the digital age:
turning charts
into profits
Technical analysis is derided, but not
necessarily fairly, says Daniel Knowles
T
O ACADEMIC economists, tech-
nical analysis is a pseudo-
science, rather like water
divining, or alchemy. The aca-
demics contend that traders are in
fact not using technical analysis at
all, at least not exclusively, or else are
not actually profitable. One particu-
lar study described technical traders
as “noise traders”, as opposed to
“news traders”, concluding that tech-
nical analysis is unprofitable.
But thousands of traders swear by
chart indicators with esoteric names
such as head and shoulders indica-
tors, dead cat bounces and candle-
stick charts. Many “chartists” are also
highly profitable. Are they wrong?
The efficient markets hypothesis
says that liquid financial markets
should follow a “random walk” based
on new information. According to the
hypothesis, predictable patterns in
price movements shouldn’t last,
because as soon as they become wide-
ly known to traders, they will be arbi-
traged away. Patterns such as the
“head and shoulders” have been
talked about since the 1930s and have
never been conclusively proven to
work. Markets may not be totally effi-
cient, but profitable inefficiencies do
not last long.
That perhaps explains the advice of
David Jones, chief market strategist at
IG Markets. According to Jones, tech-
nical analysis is still a useful tool, but
traders need to realise that “there is
no holy grail” for making profits. “It
definitely adds value” he says, but “a
lot of traders overcomplicate it and
get hurt trying to pick tops or bot-
toms.”
Jones argues that successfully
using technical analysis is mostly
THE
TIPSTER
FUN TIMES
IN PHARMA
L
AST week’s poor results from GSK
have put pharmaceuticals firmly
back in the minds of investors.
Early in the year Smith & Nephew
was the focus of some strongly denied,
but fierce M&A rumours, which saw the
share price spike through the key 700p
mark to a high of 739p. The 700p mark
looks set to remain as the key sticking
point for traders despite the recent
moves higher. The uncertainty surround-
ing the sector of late will bring
Thursday’s final results firmly into the
picture. They could be the catalyst
traders are looking for in order for the
share price to finally break away from
Investment | Contracts for Difference 21
There is no holy
grail for traders
to find
Picture: ALAMY
about exploiting mass psychology
and price momentum – “you don’t
want to go against market senti-
ment,” he says. “Even if you think that
the gold price is too high, if the trend
is for it to keep climbing, you need to
be aware of that.” Jones quotes Keynes
– even if you are right, the market can
stay irrational for longer than you
can stay solvent.
Sandy Jadeja, technical analyst at
City Index, goes one further. He
argues that technical analysis func-
tions best as a way of picking of exit
and entry points to trades – as a “deci-
sion making tool”. But he also stress-
es: “90 per cent of trading is
psychology.” Like Jones, he says there
is no guaranteed technique for prof-
itable trading – rather it is all about
experience, and technical analysis is
just one tool for traders to use.
Interestingly, the academics might
be moving onside. Several recent
studies have exposed the (inexplica-
ble) persistence of momentum in pre-
dicting stock prices while behavioural
finance economists are increasingly
stressing the systematic failure of
“rational markets”. Perhaps the City’s
technical analysts will have their day
yet.
ANALYSIS l The FTSE 100 on 7 May Take a position from any position.
2010. A dead cat bouncing? Our new iPhone app lets you trade on the move with
Bounce full access to live prices, Reuters news and charts.
5,250
So wherever you find inspiration, you can trade
immediately. It’s another reason why we’re the UK’s
5,190
Number One CFD provider.*
5,130 CFD trading may result in losses that exceed your
initial deposit.
5,070
To download, search for IG Markets in the App Store.
09:01 11:01 13:01 15:01
the 700p level. Alpari is offering a
spread of 705.5p–706.5p.
Mining stocks are in focus this week
too. Randgold Resources impressed the
market yesterday helping drive the
company's share price back above the
£50.00 level. With Xstrata's results out
this morning and Rio Tinto due on
Thursday, the sector could well be in for
further volatility. But so long as the
global economy continues to improve
then miners should remain in favour. IG
Markets quotes a price for the sector of
27,765-27,817.
Engineering and project manage-
ment firm Amec has been on a long
lasting trend upwards since late August,
from 848p to 1,224p currently. Its
shareholder return (capital gains plus
dividends) for 2010 was 48 per cent
and JPMorgan has made it their top
pick in its sector for 2011. Given recent
acquistions and contract wins, there
could well be more upside to be had.
Capital CFDs quotes 1,224.3p–1,226.7p. *Investment Trends 2010 UK Spread Betting/CFD report. Apple, the Apple logo, iPod, iPod touch, and iTunes are trademarks of Apple Inc., registered in the U.S. and
Daniel Knowles other countries. iPhone is a trademark of Apple Inc. App Store is a service mark of Apple Inc.
 22 Wealth Management CITYA.M. 8 FEBRUARY 2011

FTSE 100 FTSE 250 FTSE ALLSHARE DOW NASDAQ S&P 500 / 1.1892 0.0041 /$ 1.3580 0.0002
6051.03 11811.07 3139.56 12161.63 2783.99 1319.05 /$ 1.6121 0.0011 /£ 0.8427 0.0002
53.65 144.54 29.17 69.48 14.69 8.18 /¥ 132.68 0.3423 /¥ 111.82 0.0700
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 Yule Catto & Co . . . . . . .2.3 0.0 2.3 1.1 Brewin Dolphin Ho . . . .1.7 0.0 1.8 1.1 Rexam . . . . . . . . . . . . . .3.7 0.0 3.7 2.8 Amlin . . . . . . . . . . . . . . .4.0 0.0 4.3 3.7 BHP Billiton . . . . . . . . .25.4 0.0 26.2 16.8 Great Portland Es . . . . .3.7 0.0 3.7 2.8 Marston's . . . . . . . . . . . .1.0 0.0 1.2 0.8
Camellia . . . . . . . . . . . .98.5 -0.0 107.0 69.0 Smiths Group . . . . . . .13.7 0.0 14.0 10.0 Beazley . . . . . . . . . . . . . .1.2 0.0 1.3 1.0 Centamin Egypt Lt . . . .1.5 0.0 2.0 1.1 Hammerson . . . . . . . . . .4.4 0.0 4.4 3.4 Millennium & Copt . . . .5.7 0.0 5.9 3.7
Tsy 9.000 11 . . . . .103.52 -0.04 111.5 103.5 CONSTRUCTION & MATERIALS Charles Taylor Co . . . . .1.6 0.0 2.4 1.5 Brit Insurance Ho . . . .10.5 0.0 10.6 7.3 Eurasian Natural . . . .10.4 -0.0 12.7 8.2 Land Securities G . . . . .6.9 -0.0 7.1 5.5 Mitchells & Butle . . . . . .3.5 0.0 3.6 2.7
Tsy 3.250 11 . . . . .101.98 -0.03 104.1 102.0 GENERAL RETAILERS
Balfour Beatty . . . . . . . .3.5 0.0 3.5 2.3 City of London Gr . . . . .0.9 0.0 0.9 0.6 Catlin Group Ltd. . . . . .3.8 0.0 3.9 3.2 Fresnillo . . . . . . . . . . . .14.5 0.0 16.8 7.1 SEGRO . . . . . . . . . . . . . .3.2 0.0 3.4 2.5 National Express . . . . .2.5 0.0 2.6 2.0
Tsy 2.500 11 . . . . .309.40 -0.02 311.1 306.4 Keller Group . . . . . . . . .6.6 0.0 7.8 5.2 City of London In . . . . .4.5 0.0 4.6 2.7 Brown (N.) Group . . . . .2.8 0.0 3.1 2.1 CPP Group . . . . . . . . . . .3.1 0.0 3.3 2.3 Hochschild Mining . . . .5.2 -0.0 6.6 2.3 Shaftesbury . . . . . . . . . .4.5 0.0 4.6 3.5 PartyGaming . . . . . . . . .1.9 0.0 3.3 1.8
Tsy 4.250 11 . . . . .100.28 -0.01 103.8 100.3 Kier Group . . . . . . . . . .12.9 -0.0 13.8 8.9 Close Brothers Gr . . . . .8.6 0.0 8.9 6.6 Carpetright . . . . . . . . . . .6.8 -0.0 9.7 6.4 Hiscox Ltd. . . . . . . . . . . .3.8 -0.0 4.0 3.3 Kazakhmys . . . . . . . . .16.3 0.0 16.7 9.7 Punch Taverns . . . . . . .0.7 0.0 1.0 0.6
Tsy 9.000 12 . . . . .111.20 -0.37 118.0 111.1 Collins Stewart . . . . . . .0.9 0.0 0.9 0.7 Debenhams . . . . . . . . . .0.7 0.0 0.8 0.5 Jardine Lloyd Tho . . . . .6.3 -0.0 6.4 4.6 Kenmare Resources . . .0.4 0.0 0.4 0.1 SOFTWARE & COMPUTER SERV. Rank Group . . . . . . . . . .1.3 0.0 1.4 0.9
Tsy 5.250 12 . . . .105.41 -0.03 108.7 105.4 ELECTRICITY Evolution Group . . . . . .0.7 0.0 1.3 0.7 Dignity . . . . . . . . . . . . . .6.7 0.0 7.3 6.0 Lancashire Holdin . . . . .5.8 0.0 6.5 4.4 Lonmin . . . . . . . . . . . . .18.3 0.0 21.1 13.6 Autonomy Corporat . .15.5 -0.0 19.8 12.7 Restaurant Group . . . . .2.9 0.0 3.1 1.9
Tsy 5.000 12 . . . .104.27 -0.01 107.7 104.3 Drax Group . . . . . . . . . .4.0 0.0 4.2 3.3 F&C Asset Managem . .0.9 -0.0 0.9 0.5 Dixons Retail . . . . . . . .0.2 0.0 0.4 0.2 RSA Insurance Gro . . . .1.4 0.0 1.4 1.1 Petropavlovsk . . . . . . .10.8 0.0 13.7 8.5 Aveva Group . . . . . . . .17.4 0.0 17.4 10.1 Sportingbet . . . . . . . . . .0.5 0.0 0.8 0.5
Tsy 4.500 13 . . . .106.01 -0.08 109.2 106.0 Scottish & Southe . . . .11.7 0.0 12.6 10.1 Gartmore Group Lt . . . .1.1 0.0 2.1 0.9 Dunelm Group . . . . . . . .4.6 -0.0 5.5 3.3 Randgold Resource . .51.1 0.0 66.6 44.3 Computacenter . . . . . . .4.5 0.0 4.6 2.6 Stagecoach Group . . . .2.2 0.0 2.2 1.6
Tsy 8.000 13 . . . . .116.47 -0.09 121.3 116.5 LIFE INSURANCE
Hargreaves Lansdo . . .5.3 0.0 6.0 2.8 Halfords Group . . . . . . .4.1 0.0 5.5 3.7 Rio Tinto . . . . . . . . . . . .46.3 0.0 46.3 28.1 Fidessa Group . . . . . . .16.1 0.0 17.2 12.4 Thomas Cook Group . .1.9 0.0 2.7 1.7
Tsy 2.500 13 . . . .279.09 -0.12 280.0 263.6 ELECTRONIC & ELECTRICAL EQ. Helphire Group . . . . . . .0.1 0.0 0.6 0.1 Home Retail Group . . . .2.2 0.0 3.0 1.9 Aviva . . . . . . . . . . . . . . . .4.6 0.0 4.6 2.9 Vedanta Resources . .24.3 0.0 29.3 18.4 Invensys . . . . . . . . . . . . .3.4 0.0 3.6 2.3 TUI Travel . . . . . . . . . . . .2.5 0.0 3.1 1.9
Tsy 5.000 14 . . . .109.24 -0.16 114.1 109.2 Domino Printing S . . . .6.9 0.0 6.9 3.3 Henderson Group . . . . .1.6 0.0 1.6 1.1 Inchcape . . . . . . . . . . . .3.9 0.0 3.9 2.4 Legal & General G . . . . .1.2 0.0 1.2 0.7 Xstrata . . . . . . . . . . . . .14.7 0.0 15.4 8.5 Logica . . . . . . . . . . . . . . .1.4 0.0 1.5 1.0 Whitbread . . . . . . . . . .17.7 0.0 18.9 12.7
Tsy 8.000 15 . . . .123.85 -0.19 131.6 123.9 Halma . . . . . . . . . . . . . . .3.4 0.0 3.7 2.2 Highway Capital . . . . . .0.1 0.0 0.1 0.1 JD Sports Fashion . . . .8.4 0.0 9.3 5.6 Old Mutual . . . . . . . . . . .1.3 -0.0 1.5 1.0 Micro Focus Inter . . . . .4.2 0.0 5.5 2.8 William Hill . . . . . . . . . . .1.8 0.0 2.2 1.6
Tsy 7.750 15 . . . .105.75 -0.24 112.2 76.0 MOBILE TELECOMS
Laird . . . . . . . . . . . . . . . .1.7 0.0 1.7 1.0 ICAP . . . . . . . . . . . . . . . .5.6 0.0 5.7 3.0 Kesa Electricals . . . . . .1.4 0.0 1.7 1.0 Phoenix Group Hol . . . .6.3 0.0 7.6 5.6 Misys . . . . . . . . . . . . . . .3.5 0.0 3.5 2.0
Tsy 4.750 15 . . . .108.78 -0.21 114.7 108.5 Morgan Crucible C . . . .2.7 0.0 2.7 1.6 IG Group Holdings . . . .4.7 0.0 5.5 3.6 Kingfisher . . . . . . . . . . .2.5 -0.0 2.7 2.0 Prudential . . . . . . . . . . .7.2 0.0 7.2 4.9 Inmarsat . . . . . . . . . . . . .6.9 -0.0 8.2 6.1 Sage Group . . . . . . . . . .3.0 0.0 3.0 2.2 AIM 50
Tsy 2.500 16 . . . .312.72 -0.21 318.5 291.8 Renishaw . . . . . . . . . . .16.0 0.0 16.8 5.7 Intermediate Capi . . . . .3.5 0.0 3.6 2.4 Marks & Spencer G . . . .3.6 0.0 4.3 3.2 Resolution Ltd. . . . . . . .2.7 -0.0 3.3 2.1 Vodafone Group . . . . . .1.8 -0.0 1.8 1.3 SDL . . . . . . . . . . . . . . . . .6.3 0.0 6.6 4.1 Abcam . . . . . . . . . . . . . .3.5 0.0 3.9 2.1
Tsy 4.000 16 . . . .105.07 -0.22 111.4 102.8 Spectris . . . . . . . . . . . .13.8 0.0 14.2 7.4 International Per . . . . . .3.5 0.0 3.9 1.8 Mothercare . . . . . . . . . . .5.3 0.0 6.6 4.9 St James's Place . . . . . .3.1 0.0 3.1 2.0 Telecity Group . . . . . . . .5.0 0.0 5.3 3.6 Albemarle & Bond . . . .2.9 0.0 3.3 2.2
Tsy 12.000 17 . . .128.76 0.00 185.9 128.8 International Pub . . . . .1.1 -0.0 1.2 1.1 Next . . . . . . . . . . . . . . .20.0 0.0 23.4 18.2 Standard Life . . . . . . . . .2.4 -0.0 2.4 1.7 NONEQUITY INVESTM. COMM. Amerisur Resource . . . .0.2 0.0 0.2 0.1
Tsy 1.250 17 . . . .107.22 -0.24 111.1 102.6 EQUITY INVESTMENT INSTRUM. Investec . . . . . . . . . . . . .4.9 0.0 5.6 4.2 Sports Direct Int . . . . . .1.7 -0.0 1.7 0.9 Genesis Emerging . . . .5.2 0.0 5.7 4.0 SUPPORT SERVICES Archipelago Resou . . . .0.6 0.0 0.6 0.3
Tsy 8.750 17 . . . .133.21 -0.18 142.2 132.4 MEDIA
Aberforth Smaller . . . . .6.7 0.0 6.9 5.0 IP Group . . . . . . . . . . . . .0.4 0.0 0.6 0.3 WH Smith . . . . . . . . . . . .4.7 0.0 5.2 4.0 Aggreko . . . . . . . . . . . .14.9 0.0 16.9 8.8 ASOS . . . . . . . . . . . . . .16.8 0.0 16.8 4.2
Tsy 5.000 18 . . . .109.99 -0.20 117.6 107.4 Alliance Trust . . . . . . . .3.7 0.0 3.8 2.9 Jupiter Fund Mana . . . .3.3 0.0 3.3 1.8 4imprint Group . . . . . . .2.5 0.0 2.8 1.2 OIL & GAS PRODUCERS Ashtead Group . . . . . . .1.9 0.0 1.9 0.8 Aurelian Oil & Ga . . . . .0.9 0.0 0.9 0.3
Tsy 4.500 19 . . . .105.78 -0.14 113.8 102.5 HEALTH CARE EQUIPMENT & S.
Bankers Inv Trust . . . . .4.2 0.0 4.2 3.4 LMS Capital . . . . . . . . . .0.5 0.0 0.6 0.4 Aegis Group . . . . . . . . .1.5 0.0 1.5 1.0 Afren . . . . . . . . . . . . . . . .1.6 0.0 1.6 0.8 Atkins (WS) . . . . . . . . . .6.8 0.0 7.9 5.6 Avanti Communicat . . .6.1 0.0 7.4 3.8
Tsy 3.750 19 . . . . .99.81 -0.14 107.7 95.9 BH Global Ltd. GB . . .10.9 0.0 11.8 10.8 London Finance & . . . .0.2 0.0 0.2 0.2 Smith & Nephew . . . . . .7.1 0.0 7.1 5.4 Bloomsbury Publis . . . .1.1 0.0 1.3 1.1 BG Group . . . . . . . . . . .14.4 0.0 14.6 9.8 Babcock Internati . . . . .5.7 0.0 6.4 4.9 Avocet Mining . . . . . . . .2.2 0.0 2.4 0.9
Tsy 4.750 20 . . . .107.01 -0.10 115.9 103.8 BH Global Ltd. US . . . .10.8 0.0 11.6 10.7 London Stock Exch . . .8.8 0.0 9.1 5.4 Synergy Health . . . . . . .9.5 0.0 9.5 5.6 British Sky Broad . . . . .7.6 0.0 7.7 5.2 BP . . . . . . . . . . . . . . . . . .4.8 0.0 6.6 3.0 Berendsen . . . . . . . . . . .4.5 0.0 4.5 3.6 Blinkx . . . . . . . . . . . . . . .1.0 0.0 1.0 0.1
Tsy 2.500 20 . . . .314.96 -0.10 325.7 290.9 BH Macro Ltd. EUR . . .16.4 -0.0 17.2 15.8 Man Group . . . . . . . . . . .3.1 0.0 3.1 2.0 Centaur Media . . . . . . . .0.7 -0.0 0.7 0.5 Cairn Energy . . . . . . . . .4.4 0.0 4.9 3.2 Bunzl . . . . . . . . . . . . . . .7.8 0.0 7.8 6.3 Borders & Souther . . . .0.7 0.0 0.9 0.5
Tsy 8.000 21 . . . .134.39 -0.09 147.1 132.8 HHOLD GDS & HOME CONSTR.
BH Macro Ltd. GBP . .17.0 0.0 18.0 16.3 Paragon Group Of . . . .1.9 0.0 1.9 1.1 Chime Communicati . . .2.8 -0.0 2.8 1.6 EnQuest . . . . . . . . . . . . .1.5 -0.0 1.5 0.9 Capita Group . . . . . . . . .6.7 0.0 8.3 6.4 BowLeven . . . . . . . . . . .3.6 0.0 4.0 1.0
Tsy 4.000 22 . . . . .99.48 -0.10 108.4 95.4 BH Macro Ltd. USD . . .16.5 0.0 17.1 15.8 Provident Financi . . . . .9.7 0.0 10.0 7.3 Barratt Developme . . . .1.0 0.0 1.4 0.7 Creston . . . . . . . . . . . . .0.9 0.0 1.1 0.8 Essar Energy . . . . . . . .5.3 0.0 5.9 3.8 Carillion . . . . . . . . . . . . .3.9 0.0 3.9 2.7 Caledon Resources . . .1.0 -0.0 1.1 0.2
Tsy 1.875 22 . . . . .111.76 -0.15 117.8 107.3 BlackRock World M . . .8.0 0.0 8.2 4.9 Rathbone Brothers . . .11.8 0.0 11.8 7.6 Bellway . . . . . . . . . . . . . .6.6 0.0 8.1 5.1 Daily Mail and Ge . . . . .5.9 0.0 5.9 4.3 Exillon Energy . . . . . . . .3.9 0.0 4.2 1.6 De La Rue . . . . . . . . . . .7.1 0.0 9.8 5.5 Cape . . . . . . . . . . . . . . . .4.7 0.0 4.7 1.9
Tsy 2.500 24 . . . .276.21 -0.10 286.9 254.0 BlueCrest AllBlue . . . . .1.7 0.0 1.7 1.6 Real Estate Credi . . . . .1.1 0.0 2.5 0.9 Heritage Oil . . . . . . . . . .3.2 0.0 5.8 3.0 Electrocomponents . . .2.7 0.0 2.8 1.8 CareTech Holding . . . . .2.3 -0.0 4.4 2.3
Tsy 5.000 25 . . . .107.94 -0.11 118.5 103.6 British Assets Tr . . . . . .1.4 0.0 1.4 1.1 RSM Tenon Group . . . .0.6 0.0 0.7 0.4 JKX Oil & Gas . . . . . . . .3.0 0.0 3.3 2.2 Experian . . . . . . . . . . . . .7.9 0.0 8.2 5.7 Conygar Investmen . . .1.2 -0.0 1.2 1.0
Tsy 1.250 27 . . . .105.31
Tsy 4.250 27 . . . . .98.55
-0.10
-0.05
111.2
108.8
100.4
94.8
British Empire Se . . . . .5.1 0.0 5.1 4.0
Caledonia Investm . . .18.2 0.0 19.3 15.1
S & U . . . . . . . . . . . . . . . .6.2
Schroders . . . . . . . . . .18.7
0.0
0.0
6.2 4.6
19.2 11.2
MAIN CHANGES UK 350 Premier Oil . . . . . . . . . .21.4 0.0
Royal Dutch Shell . . . .21.7 0.0
21.4 10.2
22.7 16.2
Filtrona PLC . . . . . . . . . .3.0 0.0
G4S . . . . . . . . . . . . . . . . .2.7 0.0
3.0 1.7
2.8 2.4
Cove Energy . . . . . . . . .1.0
Daisy Group . . . . . . . . . .1.0
-0.0
-0.0
1.1
1.1
0.2
0.8
Tsy 6.000 28 . . . .120.20 -0.05 132.7 116.9 City of London In . . . . .2.9 0.0 3.0 2.3 Schroders (Non-Vo . . .14.5 0.0 15.1 9.3 Royal Dutch Shell . . . .21.7 0.0 22.5 15.5 Hays . . . . . . . . . . . . . . . .1.3 0.0 1.3 0.9 Desire Petroleum . . . . .0.4 0.0 1.7 0.3
Tsy 4.125 30 . . . .263.72 -0.08 274.4 242.0 Dexion Absolute L . . . .1.5 -0.0 1.5 1.3 Tullett Prebon . . . . . . . .4.1 0.0 4.2 2.7
Risers % Fallers %
Salamander Energy . . .3.1 0.0 3.1 2.0 Homeserve . . . . . . . . . . .4.5 0.0 4.9 3.3 EMIS Group . . . . . . . . . .4.4 -0.0 4.5 3.0
Tsy 4.750 30 . . . .103.62 -0.02 115.0 100.1 Edinburgh Dragon . . . .2.4 0.0 2.6 1.8 Walker Crips Grou . . . .0.5 0.0 0.5 0.5 Bodycote . . . . . . . . . . . .3.1 6.9 Unite Group . . . . . . . . . .2.0 -3.9 Soco Internationa . . . . .3.7 0.0 4.8 2.9 Howden Joinery Gr . . . .1.2 0.0 1.2 0.6 Encore Oil . . . . . . . . . . .1.5 0.0 1.5 0.1
Tsy 4.250 32 . . . . .96.62 -0.04 107.8 93.7 Edinburgh Inv Tru . . . . .4.3 0.0 4.7 3.7 Trinity Mirror . . . . . . . . .0.8 6.8 EnQuest . . . . . . . . . . . . .1.5 -2.7 Tullow Oil . . . . . . . . . . .14.2 0.0 14.2 9.9 Intertek Group . . . . . . .17.9 0.0 20.0 11.5 Faroe Petroleum . . . . . .1.9 0.0 2.2 1.1
Tsy 4.250 36 . . . . .95.63 -0.06 107.4 93.0 Electra Private E . . . . .16.5 0.0 17.2 11.8 FIXED LINE TELECOMS Michael Page Inte . . . . .5.5 0.0 5.7 3.5 Gulfsands Petrole . . . . .3.3 0.0 4.0 2.4
Tsy 4.750 38 . . . .103.59 -0.06 116.5 101.1 IP Group . . . . . . . . . . . . .0.4 6.6 Kier Group . . . . . . . . . .12.9 -1.8
F&C Inv Trust . . . . . . . . .3.2 0.0 3.2 2.5 BT Group . . . . . . . . . . . .1.8 -0.0 1.9 1.1 OIL EQUIPMENT & SERVICES Mitie Group . . . . . . . . . .2.2 0.0 2.4 1.9 GW Pharmaceutical . . .1.1 0.0 1.4 0.8
Tsy 4.500 42 . . . . .99.77 -0.07 112.8 97.5 Keller Group . . . . . . . . .6.6 5.2 Hiscox Ltd. . . . . . . . . . .3.8 -1.6
Fidelity China Sp . . . . . .1.1 -0.0 1.3 0.9 Cable & Wireless . . . . .0.5 0.0 0.6 0.4 Yell Group . . . . . . . . . . .0.1 5.0 ITV . . . . . . . . . . . . . . . . .0.8 -1.6 Amec . . . . . . . . . . . . . .12.3 0.0 12.5 7.5 Premier Farnell . . . . . . .3.0 0.0 3.0 1.8 Hamworthy . . . . . . . . . .5.0 -0.0 5.0 2.6
Fidelity European . . . .11.5 0.0 11.6 9.2 Cable & Wireless . . . . .0.8 -0.0 1.0 0.6 Hunting . . . . . . . . . . . . .8.0 0.0 8.1 4.4 Regus . . . . . . . . . . . . . . .1.0 0.0 1.2 0.7 Hargreaves Servic . . . .9.0 0.0 9.1 5.6
AEROSPACE & DEFENCE Fidelity Special . . . . . . .5.9 0.0 5.9 5.0 COLT Group SA . . . . . .1.5 0.0 1.5 1.1 Meggitt . . . . . . . . . . . . . .3.6 4.4 Resolution Ltd. . . . . . . .2.7 -1.6 John Wood Group . . . .5.8 0.0 5.8 2.9 Rentokil Initial . . . . . . . .1.0 0.0 1.4 0.9 Healthcare Locums . . . .1.1 0.0 0.0 0.0
BAE Systems . . . . . . . .3.4 0.0 3.9 2.9 Herald Inv Trust . . . . . . .5.3 0.0 5.3 3.3 TalkTalk Telecom . . . . .1.6 -0.0 1.7 1.1 Logica . . . . . . . . . . . . . .1.4 4.4 BT Group . . . . . . . . . . . .1.8 -1.6 Lamprell . . . . . . . . . . . . .3.0 0.0 3.9 1.9 RPS Group . . . . . . . . . . .2.2 -0.0 2.4 1.7 Immunodiagnostic . . . .9.1 0.0 9.8 5.8
Chemring Group . . . . .35.3 0.0 36.6 26.0 HSBC Infrastructu . . . . .1.2 0.0 1.2 1.1 Cobham . . . . . . . . . . . . .2.2 4.1 Centaur Media . . . . . . . .0.7 -1.4 Petrofac Ltd. . . . . . . . .15.5 0.0 16.9 8.8 Serco Group . . . . . . . . .5.5 0.0 6.5 4.9 James Halstead . . . . . . .4.4 0.0 4.4 2.8
FOOD & DRUG RETAILERS
Cobham . . . . . . . . . . . . .2.2 0.0 2.8 1.9 Impax Environment . . .1.2 -0.0 1.3 1.1 Exillon Energy . . . . . . . .3.9 4.1 Camellia . . . . . . . . . . . .98.5 -1.4 Wellstream Holdin . . . .7.9 0.0 7.9 4.4 Shanks Group . . . . . . . .1.2 0.0 1.3 0.9 Kalahari Minerals . . . . .2.5 0.0 2.7 1.4
Meggitt . . . . . . . . . . . . . .3.6 0.0 3.8 2.5 JPMorgan American . . .9.0 0.0 9.0 6.7 Booker Group . . . . . . . .0.6 0.0 0.6 0.4 ARM Holdings . . . . . . . .6.1 3.9 Cable & Wireless W . . .0.8 -1.4 SIG . . . . . . . . . . . . . . . . .1.4 0.0 1.5 0.9 London Mining . . . . . . .4.2 0.0 4.2 1.9
QinetiQ Group . . . . . . . .1.3 0.0 1.4 1.0 JPMorgan Asian In . . . .2.3 0.0 2.5 1.7 Greggs . . . . . . . . . . . . . .4.9 0.0 5.0 4.0 PERSONAL GOODS SThree . . . . . . . . . . . . . .4.0 0.0 4.0 2.3 Lonrho . . . . . . . . . . . . . .0.2 -0.0 0.2 0.1
Rolls-Royce Group . . . .6.5 0.0 6.7 4.8 JPMorgan Emerging . . .5.8 0.0 6.4 4.6 Morrison (Wm) Sup . . . .2.8 -0.0 3.1 2.6 Price Chg High Low Price Chg High Low Burberry Group . . . . . .11.7 0.0 11.7 5.9 Travis Perkins . . . . . . .10.6 0.0 11.3 6.6 M. P. Evans Group . . . .4.4 -0.0 5.0 3.2
Senior . . . . . . . . . . . . . . .1.6 0.0 1.6 0.8 JPMorgan European . . .8.7 0.0 8.9 6.1 Ocado Group . . . . . . . . .2.5 0.0 2.5 1.2 PZ Cussons . . . . . . . . . .3.6 0.0 4.1 2.6 Wolseley . . . . . . . . . . .22.4 0.0 22.4 12.2 Majestic Wine . . . . . . . .4.2 0.0 4.3 2.3
Ultra Electronics . . . . .18.1 0.0 19.0 12.8 JPMorgan Indian I . . . . .4.1 -0.0 5.0 3.5 Sainsbury (J) . . . . . . . . .3.9 0.0 4.0 3.1 Berkeley Group Ho . . . .9.4 0.0 9.6 7.4 Euromoney Institu . . . .7.2 0.0 7.3 4.6 Supergroup . . . . . . . . .17.6 0.0 17.6 5.4 May Gurney Integr . . . .2.6 -0.0 2.6 1.8
JPMorgan Russian . . .7.1 -0.0 7.6 4.8 Tesco . . . . . . . . . . . . . . .4.0 -0.0 4.5 3.8 Bovis Homes Group . . .4.6 0.0 4.6 3.3 Future . . . . . . . . . . . . . . .0.3 0.0 0.3 0.2 TECHNOLOGY HARDW. & EQUIP. Monitise . . . . . . . . . . . . .0.3 0.0 0.3 0.1
ALTERNATIVE ENERGY Law Debenture Cor . . . .3.6 0.0 3.6 2.7 PHARMACEUTICALS & BIOTECH ARM Holdings . . . . . . . .6.1 0.0 6.1 1.9 Mulberry Group . . . . . .13.6 -0.0 13.9 1.6
Mcbride . . . . . . . . . . . . .1.5 -0.0 2.5 1.1 Haynes Publishing . . . .2.3 0.0 2.6 2.0
Hansen Transmissi . . . .0.5 0.0 1.1 0.4 Mercantile Inv Tr . . . . .11.2 0.0 11.3 8.3 FOOD PRODUCERS Huntsworth . . . . . . . . . .0.8 0.0 0.9 0.6 AstraZeneca . . . . . . . .29.6 0.0 33.9 27.7 CSR . . . . . . . . . . . . . . . . .4.1 0.0 5.1 2.8 Nanoco Group . . . . . . . .0.9 0.0 1.2 0.7
Persimmon . . . . . . . . . .4.3 0.0 5.1 3.4
Merchants Trust . . . . . .4.1 0.0 4.3 3.2 Associated Britis . . . .10.6 -0.0 11.8 8.8 Reckitt Benckiser . . . .34.4 -0.0 36.6 30.4 Informa . . . . . . . . . . . . . .4.5 0.0 4.5 3.1 BTG . . . . . . . . . . . . . . . . .2.2 -0.0 2.6 1.5 Imagination Techn . . . .3.8 0.0 4.4 2.2 Nautical Petroleu . . . . .5.4 -0.0 5.5 0.5
AUTOMOBILES & PARTS Monks Inv Trust . . . . . .3.6 0.0 3.6 2.7 Cranswick . . . . . . . . . . .8.6 0.0 9.1 7.4 Genus . . . . . . . . . . . . . . .8.8 0.0 8.9 6.8 Pace . . . . . . . . . . . . . . . .2.0 0.0 2.2 1.5 Nichols . . . . . . . . . . . . . .4.8 0.0 5.0 3.3
Redrow . . . . . . . . . . . . . .1.2 0.0 1.5 1.0 ITE Group . . . . . . . . . . . .2.4 0.0 2.5 1.3
GKN . . . . . . . . . . . . . . . .2.0 0.0 2.4 1.0 Murray Income Tru . . . .6.4 0.0 6.5 5.1 Dairy Crest Group . . . . .3.9 0.0 4.2 3.3 Taylor Wimpey . . . . . . . .0.4 0.0 0.4 0.2 ITV . . . . . . . . . . . . . . . . . .0.8 -0.0 0.8 0.5 GlaxoSmithKline . . . . .11.9 0.0 13.2 11.0 Spirent Communica . . .1.6 0.0 1.6 1.0 Numis Corporation . . . .1.2 0.0 1.6 1.1
Murray Internatio . . . . .9.2 0.0 9.7 7.4 Devro . . . . . . . . . . . . . . .2.3 0.0 2.8 1.5 Johnston Press . . . . . . .0.1 0.0 0.3 0.1 Hikma Pharmaceuti . . .8.5 0.0 9.0 5.3 Patagonia Gold . . . . . . .0.5 0.0 0.6 0.1
BANKS Perpetual Income . . . . .2.5 0.0 2.6 2.0 Premier Foods . . . . . . . .0.2 0.0 0.4 0.2 INDUSTRIAL ENGINEERING Shire Plc . . . . . . . . . . . .16.6 0.0 16.9 12.4 TOBACCO Pursuit Dynamics . . . . .4.0 0.0 7.0 1.4
Mecom Group . . . . . . . .2.8 -0.0 2.9 1.5
Barclays . . . . . . . . . . . . .3.1 0.0 3.8 2.6 Polar Cap Technol . . . .3.9 0.0 3.9 2.4 Tate & Lyle . . . . . . . . . . .5.8 0.0 5.8 4.0 Bodycote . . . . . . . . . . . .3.1 0.0 3.1 1.7 Moneysupermarket. . . .0.9 0.0 0.9 0.6 British American . . . .24.4 0.0 25.2 19.6 Rockhopper Explor . . . .3.9 0.0 5.1 0.4
HSBC Holdings . . . . . . .7.1 -0.0 7.2 6.0 RIT Capital Partn . . . . .13.1 0.0 13.2 9.8 Unilever . . . . . . . . . . . .18.3 0.0 20.0 16.9 Pearson . . . . . . . . . . . .10.5 0.0 10.7 8.6 REAL ESTATE INVEST. & SERV. Imperial Tobacco . . . .19.7 0.0 21.5 17.5 RWS Holdings . . . . . . . .3.4 0.0 3.7 2.4
Charter Internati . . . . . .8.1 0.0 8.5 5.7
Lloyds Banking Gr . . . .0.6 0.0 0.8 0.5 Schroder Asia Pac . . . .2.2 -0.0 2.3 1.7 Fenner . . . . . . . . . . . . . .3.4 0.0 3.9 1.7 Reed Elsevier . . . . . . . .5.7 0.0 5.7 4.6 Capital & Countie . . . . .1.5 0.0 1.6 1.0 Songbird Estates . . . . .1.4 0.0 1.8 1.3
Scottish Inv Trus . . . . . .5.1 0.0 5.2 4.0 FORESTRY & PAPER Daejan Holdings . . . . .28.0 0.0 28.7 21.6 TRAVEL & LEISURE Sterling Energy . . . . . . .0.7 0.0 1.7 0.5
Royal Bank of Sco . . . .0.4 0.0 0.6 0.3 IMI . . . . . . . . . . . . . . . . . .8.9 0.0 9.5 5.3 Rightmove . . . . . . . . . . .8.8 0.0 8.8 5.3
Standard Chartere . . .16.9 0.0 19.5 13.5 Scottish Mortgage . . . .7.2 0.0 7.2 4.8 Mondi . . . . . . . . . . . . . . .5.3 0.0 5.6 3.4 Melrose . . . . . . . . . . . . .3.2 0.0 3.3 1.6 STV Group . . . . . . . . . . .1.2 -0.0 1.3 0.5 F&C Commercial Pr . . .1.0 0.0 1.1 0.9 Avis Europe . . . . . . . . . .2.3 0.0 2.8 1.9 Valiant Petroleum . . . . .6.4 0.0 7.6 5.0
SVG Capital . . . . . . . . . .2.4 0.0 2.5 1.3 Rotork . . . . . . . . . . . . .16.7 0.0 19.0 12.2 Tarsus Group . . . . . . . . .1.4 0.0 1.5 1.1 Grainger . . . . . . . . . . . . .1.0 -0.0 1.5 0.9 Betfair Group . . . . . . . . .9.2 0.0 15.5 8.8 Vatukoula Gold Mi . . . . .1.8 0.0 2.3 0.8
BEVERAGES Temple Bar Inv Tr . . . . .9.0 0.0 9.1 7.2 GAS, WATER & MULTIUTILITIES Helical Bar . . . . . . . . . . .2.8 0.0 3.6 2.6 Carnival . . . . . . . . . . . .29.3 0.0 31.5 20.4 Young & Co's Brew . . . .6.1 0.0 6.7 4.9
Spirax-Sarco Engi . . . .18.8 0.0 20.3 12.4 Trinity Mirror . . . . . . . . .0.8 0.0 1.7 0.6
AG Barr . . . . . . . . . . . .11.4 -0.0 13.0 7.9 Templeton Emergin . . .6.3 0.0 6.9 4.7 Centrica . . . . . . . . . . . . .3.3 0.0 3.5 2.6 Weir Group . . . . . . . . .16.0 0.0 18.6 7.4 United Business M . . . .7.0 0.0 7.2 4.1 London & Stamford . . .1.3 -0.0 1.3 1.1 Compass Group . . . . . .5.6 -0.0 5.9 4.4
Britvic . . . . . . . . . . . . . . .4.5 0.0 5.2 4.1 TR Property Inv T . . . . .1.7 0.0 1.7 1.3 International Pow . . . . .4.3 -0.0 4.5 2.8 Ferrexpo . . . . . . . . . . . . .4.5 0.0 4.5 2.0 UTV Media . . . . . . . . . . .1.3 0.0 1.5 1.0 Savills . . . . . . . . . . . . . . .3.7 0.0 4.0 2.7 Domino's Pizza UK . . . .5.5 0.0 5.9 3.2
Diageo . . . . . . . . . . . . .12.5 0.0 12.6 10.1 TR Property Inv T . . . . .0.8 0.0 0.8 0.6 National Grid . . . . . . . . .5.5 0.0 6.0 4.8 Talvivaara Mining . . . . .5.9 -0.0 6.2 3.4 Wilmington Group . . . .1.8 0.0 1.8 1.3 St. Modwen Proper . . . .1.7 -0.0 2.0 1.4 easyJet . . . . . . . . . . . . . .4.0 0.0 5.0 3.5
SABMiller . . . . . . . . . . .20.9 0.0 23.1 16.7 Witan Inv Trust . . . . . . .5.1 0.0 5.2 4.1 Northumbrian Wate . . .3.1 -0.0 3.6 2.5 WPP . . . . . . . . . . . . . . . .8.1 0.0 8.1 5.7 UK Commercial Pro . . .0.8 -0.0 0.8 0.7 Enterprise Inns . . . . . . .1.1 0.0 1.4 0.8
Pennon Group . . . . . . . .6.3 0.0 6.5 4.8 INDUSTRIAL TRANSPORTATION Unite Group . . . . . . . . . .2.0 -0.0 2.9 1.6 FirstGroup . . . . . . . . . . .3.7 0.0 4.1 3.4
FINANCIAL SERVICES Yell Group . . . . . . . . . . .0.1 0.0 0.6 0.1
CHEMICALS Severn Trent . . . . . . . .14.5 0.0 15.0 10.9 Go-Ahead Group . . . . .12.6 0.0 14.9 10.4
BBA Aviation . . . . . . . . .2.3 0.0 2.3 1.6 REAL ESTATE INVEST. TRUSTS
AZ Electronic Mat . . . . .3.0 0.0 3.2 2.5 3i Group . . . . . . . . . . . . .3.2 0.0 3.4 2.5 United Utilities . . . . . . .5.8 -0.0 6.3 5.1 MINING Greene King . . . . . . . . . .4.8 0.0 4.9 3.8
Forth Ports . . . . . . . . . .13.4 -0.0 14.3 10.3
Croda Internation . . . .15.1 0.0 16.3 7.9 3i Infrastructure . . . . . . .1.2 -0.0 1.3 1.0
GENERAL INDUSTRIALS Stobart Group Ltd . . . . .1.5 0.0 1.6 1.3 African Barrick G . . . . .5.2 0.0 6.7 5.0 Big Yellow Group . . . . .3.3 -0.0 3.5 2.8 InterContinental . . . . .13.7 0.0 13.7 8.9 http://corporate.webfg.com
Elementis . . . . . . . . . . . .1.3 0.0 1.4 0.5 Aberdeen Asset Ma . . .2.3 0.0 2.3 1.1 Anglo American . . . . .34.1 0.0 34.1 22.5 British Land Co . . . . . . .5.3 0.0 5.4 4.2 International Con . . . . .2.7 0.0 3.1 1.8 mailto:
Ashmore Group . . . . . .3.7 0.0 3.8 2.2 Cookson Group . . . . . . .6.8 0.0 6.9 3.7 NON LIFE INSURANCE Capital Shopping . . . . .3.8 0.0 4.2 3.0 JD Wetherspoon . . . . . .4.5 0.0 5.5 3.9
Johnson Matthey . . . .19.7 0.0 21.0 14.6 Antofagasta . . . . . . . . .15.0 0.0 16.3 7.6
Victrex . . . . . . . . . . . . .14.6 -0.0 15.2 8.1 Berkeley Technolo . . . .0.0 0.0 0.0 0.0 DS Smith . . . . . . . . . . . .2.1 0.0 2.3 1.0 Admiral Group . . . . . . .17.2 0.0 17.3 11.3 Aquarius Platinum . . . .4.0 0.0 4.6 2.3 Derwent London . . . . .15.5 0.0 16.1 12.1 Ladbrokes . . . . . . . . . . .1.4 0.0 1.6 1.2 globaltechsales@webfg.com

EUSHARES USSHARES
Price Chg High Low Price Chg High Low
AIR LIQUIDE........................................93.73
ALLIANZ ............................................106.10
ALSTOM ..............................................42.67
0.18
0.20
1.25
99.15
107.05
50.73
70.88
75.82
30.78
Don’t miss breaking 3M ........................................................88.79
ABBOTT LABS ...................................45.69
ALCOA ................................................17.32
0.50
-0.43
0.18
91.49
55.55
17.47
67.98
44.59
9.81

news with our new

ANHEUS-BUSCH INBEV ....................41.55 0.97 46.33 33.66 AMAZON.COM..................................176.43 0.50 191.60 105.80
ARCELORMITTAL...............................27.25 0.60 33.68 20.26 AMERICAN EXPRESS........................44.82 1.00 49.19 36.60
AXA......................................................15.88 0.32 17.60 10.88 AMGEN INC.........................................54.88 -0.32 61.26 50.32
BANCO SANTANDER...........................8.95 0.03 10.57 7.00 APPLE ...............................................351.88 5.38 353.25 190.85
BASF SE..............................................58.45
BAYER .................................................54.50
BBVA......................................................9.03
BMW ....................................................58.85
1.10
-0.35
0.10
2.00
61.88
59.17
10.95
65.49
39.40
43.27
6.87
28.28
10:30 AM EMAIL AT&T....................................................27.96
BANK OF AMERICA ...........................14.67
BERKSHIRE HATAW B.......................84.10
BOEING CO.........................................71.93
-0.01
0.38
0.93
0.55
30.10
19.86
85.86
76.00
23.78
10.91
68.48
57.14
BNP PARIBAS.....................................56.32 0.51 59.34 40.81 BRISTOL MYERS SQUI......................25.83 0.13 28.00 22.24
CARREFOUR ......................................35.52
CREDIT AGRICOLE ............................11.45
-0.09
0.49
41.28
13.78
30.85
7.87
Each day we’ll cover the morning’s breaking CATERPILLAR..................................100.47
CHEVRON ...........................................97.66
0.88
0.55
100.81
98.23
50.50
66.83
CRH PLC .............................................16.60
DAIMLER .............................................53.62
0.10
0.93
22.00
59.09
11.51
29.93
news, give you current market analysis and CISCO SYSTEMS................................22.03
COCA-COLA .......................................62.52
-0.02
-0.04
27.74
65.88
19.00
49.47
DANONE..............................................45.23
DEUTSCHE BANK ..............................46.82
0.26
0.59
48.50
55.25
39.35
35.93 the most up-to-date financial headlines. COLGATE PALMOLIVE ......................76.28
CONOCOPHILLIPS.............................72.29
0.04
0.62
86.15
72.65
73.12
46.63
DEUTSCHE BOERSE .........................56.89 0.03 59.00 45.45 DU PONT(EI) DE NMR........................53.33 0.80 53.91 31.88
DEUTSCHE TELEKOM .......................10.06 -0.01 10.64 8.51 EMC CORP..........................................26.00 0.31 26.09 16.45
E.ON.....................................................24.64 0.12 28.93 20.86 EXXON MOBIL....................................83.93 0.65 84.00 55.94
ENEL......................................................4.26 0.05 4.28 3.42 Sign up now to ensure you FORD MOTOR.....................................16.11 0.39 18.97 9.75
ENI .......................................................18.16 0.03 18.37 14.30 GENERAL ELECTRIC.........................20.87 0.31 21.00 13.75
FRANCE TELECOM............................16.53 0.08 17.92 14.01 receive our free email. GOLDMAN SACHS GRP ..................167.13 2.32 186.41 129.50
GDF SUEZ ...........................................29.50 0.47 30.05 22.64 GOOGLE A........................................614.30 3.32 642.96 433.63
GENERALI ASS...................................16.79 0.29 18.25 13.31 HEWLETT PACKARD.........................48.14 0.71 54.75 37.32
IBERDROLA ..........................................6.38
ING GROEP CVA...................................8.99
INTESA SANPAOLO .............................2.52
0.07
0.15
0.01
6.44
9.03
2.99
4.38
5.34
1.88
Visit: www.CityAM.com/newsletter HOME DEPOT.....................................36.60
IBM.....................................................164.82
INTEL CORP .......................................21.69
-0.20
0.82
0.01
38.12
164.99
24.37
26.62
116.00
17.60
KON.PHILIPS ELECTR .......................23.02 0.39 27.01 20.58 J.P.MORGAN CHASE .........................45.50 0.91 48.20 35.16
L'OREAL..............................................89.15 0.38 90.00 70.90 JOHNSON & JOHNSON.....................60.87 0.03 66.20 56.86
LVMH..................................................116.40 2.35 129.05 74.19 WORLD INDICES KRAFT FOODS A................................30.87 -0.32 32.67 27.49
MUNICH RE .......................................122.50 2.30 123.55 98.38 MC DONALD'S CORP ........................73.45 -0.60 80.94 62.54
Price Chg %chg Price Chg %chg Price Chg %chg Price Chg %chg
NOKIA....................................................8.35 0.23 11.82 6.59 MERCK AND CO. NEW ......................33.00 0.11 39.04 30.70
FTSE 100 . . . . . . . . . . . . . . 6051.03 53.65 0.89 S&P 500 . . . . . . . . . . . . . . . 1319.05 8.18 0.62 CAC 40 . . . . . . . . . . . . . . . . 4090.80 43.59 1.08 BOVESPA SAO PAOLO . . 65362.04 92.89 0.14
REPSOL YPF.......................................23.63 0.08 23.82 15.31 FTSE 250 INDEX. . . . . . . . 11811.07 144.54 1.24 NASDAQ COMPOSITE . . . 2783.99 14.69 0.53 SHANGHAI SE INDEX . . . . 2798.96 8.27 0.30 TWN-WEIGHTED INDEX . . 8729.79 133.45 1.55 MICROSOFT........................................28.20 0.43 31.58 22.73
RWE .....................................................53.40 -0.03 68.34 47.65 FTSE UK ALL SHARE . . . . 3139.56 29.17 0.94 FTSEUROFIRST 300 . . . . . 1176.81 11.54 0.99 HANG SENG. . . . . . . . . . . 23553.59 -355.37 -1.49 STI . . . . . . . . . . . . . . . . . . . . 3192.18 -18.94 -0.59 OCCID. PETROLEUM.........................97.54 0.03 99.75 72.13
SAINT-GOBAIN ...................................43.71 0.64 43.87 27.81 FTSE AIM ALL SH . . . . . . . . 968.32 10.18 1.06 NIKKEI 225 AVERAGE . . . 10592.04 48.52 0.46 S&P/ASX 20 INDEX . . . . . . 2919.00 0.00 0.00 IGBM . . . . . . . . . . . . . . . . . . 1118.01 7.14 0.64 ORACLE CORP...................................32.98 0.36 33.56 21.24
SANOFI-AVENTIS ...............................50.79 0.49 57.45 44.01 DOW JONES INDUS 30 . . 12161.63 69.48 0.57 DAX 30 PERFORMANCE. . 7283.62 67.41 0.93 ASX ALL ORDINARIES . . . 4964.30 0.00 0.00 SWISS MARKET INDEX. . . 6611.14 26.74 0.41 PEPSICO .............................................63.68 -0.16 68.11 58.75
SAP ......................................................43.55 0.34 43.62 30.91 PFIZER ................................................19.04 -0.26 19.39 14.00
SCHNEIDER ELECTRIC....................111.20
SIEMENS .............................................94.00
-1.00
0.76
120.00
96.00
72.00
60.90
COMMODITIES CREDIT & RATES PHILIP MORRIS INTL .........................59.00
PROCTER AND GAMBLE ..................64.55
0.33
0.94
60.87
66.95
2.00
39.37
SOCIETE GENERALE.........................47.59 0.79 49.43 29.71 LON GD ONCE FIX AM...........1347.00 -0.50 NICKEL CASH ......................22675.00 480.00 BoE IR Overnight ............................0.500 0.00 Euro Base Rate ...............................1.000 0.00 QUALCOMM INC ................................55.07 -0.16 55.62 31.63
TELECOM ITALIA..................................1.06 -0.01 1.15 0.88 SILVER LDN FIX AM ..................29.33 0.41 TIN CASH.............................17500.00 250.00 BoE IR 7 days .................................0.500 0.00 Finance house base rate ................1.000 0.00 SCHLUMBERGER ..............................89.83 0.50 91.24 51.67
TELEFONICA ......................................18.59 0.06 19.69 14.67 MAPLE LEAF 1 OZ...................809.00 2.50 BoE IR 1 month ..............................0.500 0.00 US Fed funds...................................0.250 0.00 TRAVELERS CIES ..............................57.18 -0.23 57.78 47.69
ZINC CASH ............................2215.00 32.50 BoE IR 3 months ............................0.500 0.00 US long bond yield .........................4.020 0.00
TOTAL..................................................43.59 0.07 44.63 35.66 ENGL.SOVEREIGN NEU ............91.11 0.61 UNITED TECHNOLOGIE ....................83.66 1.14 83.82 62.88
BRENT SPOT INDEX................101.39 -1.23 BoE IR 6 months ............................0.500 0.00 European repo rate .........................0.771 -0.37
UNIBAIL-RODAMCO SE...................139.75 -1.05 155.95 105.19 LON PLATINUM AM................1842.00 9.00 UNITEDHEALTH GROUP ...................41.81 -0.68 44.09 27.13
SOYA...........................................0.00 0.00 LIBOR Euro - overnight ..................0.331 -0.02 Euro Euribor ....................................0.864 0.00
UNICREDIT............................................1.91 0.02 2.30 1.46 LON PALLADIUM AM ...............818.00 6.00 LIBOR Euro - 12 months ................1.603 0.00 The vix index ...................................16.20 0.27 VERIZON COMMS ..............................36.02 -0.29 37.70 24.77
UNILEVER CVA...................................21.92 0.12 24.11 20.68 ALUMINIUM CASH .................2176.00 -18.50 COCOA........................................0.00 0.00 WAL-MART STORES..........................56.07 0.04 57.90 47.77
LIBOR USD - overnight...................0.237 0.00 The baltic dry index ........................1.043 0.00
VINCI....................................................43.12 0.45 44.98 33.01 COPPER CASH ......................7347.00 36.50 COFFEE ......................................0.00 0.00 LIBOR USD - 12 months .................0.792 0.00 Markit iBoxx...................................209.11 -0.61 WALT DISNEY CO ..............................40.94 0.23 41.20 28.99
VIVENDI ...............................................21.68 0.54 22.07 16.18 LEAD CASH ...........................2025.50 24.50 KRUG.....................................1403.40 0.04 Halifax mortgage rate .....................3.500 0.00 Markit iTraxx ....................................95.51 1.48 WELLS FARGO & CO.........................33.32 0.57 34.25 23.02
 Lifestyle
Romantic
relaxation
for two
If you think dining out for St
Valentine’s day is old hat, try a
spa date, suggests Timothy Barber
THE SPA AT CHANCERY COURT, HOLBORN
This chi chi spa in Holborn is another with
an oh-so-smart couples treatment room,
called the Harmony Suite. For its Valentine’s
package, you can unwind in the relaxation
area before lying side-by-side for a 55
minute personalised massage by candle-
light, followed by chocolate-dipped straw-
berries and a glass of bubbly each. £340, 252
High Holborn, WC1V 7EN.
www.spachancerycourt.com
URBAN RETREAT AT HARRODS
The department store’s inner sanctum for
beautifying and relaxing is offering a mas-
sage for two in which you and your partner
Or indulge in some pampering at home
Penhaligon’s Blenheim
Bouquet bath oil
Have a romantic soak to wind down, and
add in some luxurious bath oil. This one
mixes citrus, lavender and musk notes.
£36 at Harrods. www.harrods.com
| Health & Beauty
are massaged simultaneously, but working
Right, the couples’ on your individual needs. £160 for two people.
treatment room at Harrods, Brompton Road, SW1X 7XL. www.har-
the Aman Spa at the rods.com
Connaught Hotel.
THE AMAN SPA AT THE CONNAUGHT
The brand new Aman spa at the Connaught
Hotel is as plush and magnificent a spot as
you’d expect from a place that’s a favourite
with Mayfair’s international jet set. A hid-
den world of marble and granite cool
beneath the hotel’s lobby, it’s got a huge
double treatment room which comes with
its own private dressing room and steam
room. Head there for the two-and-a-half
hour Aman Experiences package, involving
Diptyque Rose Eros Neal’s Yard aromatic
candle duo massage oil
Two rose-scented candles, including the Get tender and tactile with the help of
spicy “Eros” rose and the Garden rose, some high quality massage oil, full of aro-
designed to be burnt together. matic essential oils.
£55 www.spacenk.co.uk £11.65 www.nealsyardremedies.com
THE MAZDA 370Z
ROADSTER
REVIEWED IN
MOTORING TOMORROW
several treatments taking inspiration from
China, Thailand, India and the Americas.
Afterwards, take a dip in the gorgeous, min-
imalist black granite pool. Aman
Experiences package £280 per person. The
Connaught Hotel, Carlos Place, W1K 2AL www.the-
connaught.co.uk
SIX SENSES SPA PAN PENINSULA,
CANARY WHARF
A Docklands’ premier pampering venue
you don’t just receive a massage but learn as
a couple to administer to each other the
best kind of massage. A Six Senses expert
therapist will guide you through the funda-
mental steps of massage techniques to prac-
tice on each other for 90 minutes, before
you each receive a 40 minute massage.
While you’re there, there’s also a bio-ther-
mal circuit with chromotherapy steam
cabin, crystal laconium, dry sauna, sensory
shower and a hydrotherapy pool. Spa Couples
Retreat Package is £99. 2 Pan Peninsula Square,
E14 9HA. www.sixsenses.com
THE SPA STUDIO AT THE LANESBOROUGH
This small but perfectly formed spa deep
within the splendid Belgravia landmark is
offering a Thai “khun sway” treatment for
couples, who will first enjoy a spot of pink
champers in the hotel’s Library Bar to
unwind. The treatment involves exfoliation,
regenerative massage and then the placing
of warm herbal cushions full of therapeau-
tic botanical ingredients placed on your
back to soak in. The treatment lasts 90 min-
utes and costs £200 per couple, including
two glasses of champagne. Available 11 to 14
Feb. The Lanesborough, Hyde Park Corner, SW1X
7TA. www.lanesborough.com
23
BY LAURA WILLIAMS
FIT IN
THE CITY
FITNESS & DIET EXPERT
Don’t waste your
time at the gym
T
HERE are certain traps to avoid when
investing your precious time on the gym
floor. Here they are.
AVOID DOING ENDLESS REPS
Research has shown that any more than 15-20
reps and you’re wasting your time (not includ-
ing endurance-based classes such as
BodyPump and circuits obviously). Make sure
that come that 15th rep, you’re struggling to lift
the weight.
KEEP SOCIALISING TO A MINIMUM.
It may be a good motivational boost to go to
the gym with a mate but it’s probably best to
go your own separate ways once you get there.
Chat during warm-ups and cool-downs if you
must, but make sure you’re working hard in the
in-between bits.
STICK TO BIG MOVES
Isolation moves such as bicep curls are not a
good use of time. Squeezing in separate exercis-
es for your biceps, deltoids and lats when you
have just 30 minutes isn’t time-effective.
Instead, pick compound exercises like squats
and press-ups to target more than one muscle
group at a time.
DON’T GET WAYLAID BY THE TV
Focusing too much on other things means your
workout’s likely to suffer. If you want to kick
back and relax during your workout, break your
session up into intervals. That way you can take
it a bit easy during the rest periods and crank
up the pace in between.
WATCH YOUR FORM
“Don’t just do the exercise – do it right” is a lit-
tle mantra you can adopt in the free weights
area. Improper exercise technique causes injury
and if your form’s bad while you’re working one
muscle, you could be stressing another.
www.laurawilliams.co.uk
 24 Lifestyle | Restaurant WORDS BY
ZOE STRIMPEL
CITYA.M. 8 FEBRUARY 2011

City’s hidden Japanese gem FOOD & BOOZE

NEWS
ZOE STRIMPEL
AN EVENING WITH NOBU HIMSELF
Salarymen favour this Nobu Matsuhisa will be hosting three intimate
dinners where guests will hear him describe the
elegant, authentic tradition, design, and creation of his famous cui-
sine. Guests will not only experience his famous
home of “kaseiki umami dishes with a selection of sake to bring
out the subtleties of each dish, but over dinner
kappo” dining Nobu will discuss the all-importamt umami, the
fifth taste. 11-13 Feb at Nobu. To book, call 020
7447 4777.

Soseki MOUNT STREET DELI V-DAY HAMPER

Deli-du-jour, Mount Street,
20 Bury Street, EC3A 5AX is taking care of all your
www.soseki.co.uk Valentine’s needs. We like
Tel:020 7621 9211 the “Breakfast in Bed” ham-
per, packaged in a stunning
FOOD hhhhi wicker job, with half a
SERVICE hhhhh bottle of Champagne, a
ATMOSPHERE hhhii bottle of peach nectar
(to make the perfect
Cost per person without wine: £40-£100 bellini) Scott's granola,
organic fruit compotes,

Z
UMA, Roka, Aqua Kyoto, Sumosan, Postcard English
Umu. Expensive, famous, globally Breakfast tea and a selec-
branded restaurants dominate tion of Elegant ginger &
London’s Japanese food scene. I say lemon biscuits. Hamper
“scene” – think rich Russians, Sloanes in is £45. To order, call 020
celebratory mood, wealthy Asian tourists. 7499 6843. Orders must
The interiors are minimalist and violet-lit, be placed by 10
with long sweeping bars and pared-down February.
banquettes. The sound-track often evokes

that of a club. East meets West at and citrussy ponzu (the ingredients
Away from the “scene” are, of course, the Soseki. speak for themselves), and
real Japanese restaurants, where salary- mushimono – steamed spider
men from Tokyo go to eat not just proper crab from Cornwall with yuzu
sushi and rice, but to drink the right sake citrus steamed egg custard.
served the right way. From this partial list, the
Of these “real” Japanese, the best freshness and intelligence of
I’ve been to – apart from the guz- the dishes here should be clear
zle ‘n’ leave Café Japan in – surgeon-like skill, so much a
Golders Green – is Soseki. part of top Japanese cooking, is to be
Immediate pleasure derives found here in every dish.
from its hidden feeling – And the sake – served by one of Europe’s
it’s right by the Gherkin, few sake sommeliers (like Bennett, about
but you wouldn’t know as non-Japanese as you can look) – was
unless you were looking exquisite. I’d never experienced the layers
for it. It is owned and oper- of sweetness and aroma to this extent
ated by the Botticelli-esque before – the incredible smoothness of the
Caroline Bennett, former spirit knocked us sideways (almost literal-
banker in London and ly), and allowed new dimensions to be
Tokyo and founder of the experienced.
UK’s first conveyer belt sushi For a really special evening of eating and
chain, Moshi Moshi. Bennett has drinking in the City – without the stressful
a good business sense but Soseki is razzle dazzle – head to Soseki.
about her love affair with Japan – not
global domination.
Bennett calls Soseki the first kaiseki- MORE GENUINE ARTICLES
kappo restaurant in the UK – kaiseki-kappo
means “Japanese haute cuisine in the
ZOE STRIMPEL
kitchen”, a dining style that originated in
high-class restaurants catering to wealthy
merchants in 19th century Osaka.
And so the restaurant has an authentic
elegance to it – cherry wood, tapestries and
tasteful lacquer. Bennett wanted an East
meets West vibe – the most striking ele-
ment of this being the contrast between
the inside of Soseki and the rounded side
of the Gherkin looming outside the win-
dows. “But that mix of old and new is so
Tokyo,” says Bennett.
Rather than chosen off a long and con- MUGEN BANK/LONDON BRIDGE
fusing menu, the food at Soseki is best had A favourite of City types and politicos alike, the quality of the sashimi at this
“omakase”, whereby the chef prepares a unpretentious spot is excellent. Lunch deals are a particular highlight, with a
menu for you based on whatever is good smashing bento box. Nigiri shines here too, with flying fish roe, sea urchin,
that day. In our case, that included quite a razor clam or salmon tataki. This is not a showy place: it’s just a very tasty
lot of Cornish sashimi (Bennett is evangelis- one. 26 King William Street, EC4R 9AW. Tel: 020 7929 7879.
tic about well-sourced fish). Everything was
delicate, delicious and often fascinating.
Our sakizuke appetisers shone with ikura
salmon roe and grated daikon (white
rsdish), seared duck with wafu dressing
and silky marinated yellow fin.
Next came a really wonderful bowl of
soup called wanmono: made thick and vis-
cous with kuzu (a root), with a startlingly
delicious prawn fish ball in the middle.
Umami, the ”fifth” taste of savour-meets-
succour that is so revered in Japanese cook-
ing, wafts from everything. Sashimi was SAKI BAR & FOOD EMPORIUM SMITHFIELD
Cornish and fine; but we were more excit- An emporium, bar and rather swish restaurant in one, Saki is known for
ed by the next few dishes. Yakimono was its omakase (chef makes what he thinks is good – see left) menus.
grilled Scottish beef in a red bean miso Everything here is beautifully presented, from the sakizuke appetisers and
sauce; agemono was monkfish (lightly sashimi to steamed mushimono and grilled yakimono. Meat is very good,
fried), on a mound of chilli white radish too. 4 West Smithfield, EC1A 9JX. Tel: 020 7489 7033.
 CITYA.M. 8 FEBRUARY 2011 Lifestyle | TV& Games 25

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL

6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm EastEnders: BBC News
8pm Holby City:
A patient makes a
complaint against Malick.
9pm Outcasts
10pm BBC News
10.25pm Regional News
10.35pm Come Fly on the Wall
11.35pm FILM Road Trip:
Comedy, starring Breckin
Meyer 2000; Weatherview
1.10am Sign Zone: See Hear
1.40am Sign Zone: Human Planet
2.40am Sign Zone: The Bear Family
and Me 3.40am Sign Zone: Save My
Holiday 4.25am-6am BBC News
6pm Eggheads
6.30pm One Man and His
Campervan
7pm Natural World: The lives of
chimpanzees in a secluded
gorge in Uganda.
8pm A Farmer’s Life for Me:
The eight remaining pairs enter
the world of pig-farming.
9pm CHOICE The Chinese Are
Coming: China’s role as a rising
economic superpower.
10pm How TV Ruined Your Life
10.30pm Newsnight: Weather
11.20pm Mad Men
12.10am Who Gets
the Best Jobs?
1.10am BBC News 4am-6am
BBC Learning Zone
6pm London Tonight
6.30pm ITV News
7pm Emmerdale: Hour-long
episode. Amy’s behaviour
pushes Eric and Val to the limit.
8pm Lion Country: New series.
Zulu and his pride are sedated
and rehomed.
9pm Taggart: Ross’s gambling
addiction is exposed.
10pm ITV News at Ten
10.30pm London News
10.35pm The Secret Caribbean
with Trevor McDonald
11.35pm Cops with Cameras
12.30am The Zone;
ITV News Headlines
2.35am Crossing Jordan 3.20am-
5.30am ITV Nightscreen
6pm The Simpsons 6pm Home and Away
6.30pm Hollyoaks 6.30pm Zoo Days: OQ the
7pm Channel 4 News aardvark gives birth.
7.55pm 4thought.tv 6.55pm Meals in Moments
8pm Gok’s Clothes Roadshow 7pm Five News at 7
9pm Big Fat Gypsy Weddings 7.30pm Extraordinary Dogs:
10pm Shameless Five News Update
11.05pm CHOICE 8pm Stansted: The Inside
The Big C: New series. Story: Five News at 9
Comedy, starring Laura Linney. 9pm CHOICE
11.45pm The Big Bang Theory CSI: Crime Scene Investigation THE CHINESE ARE COMING
12.15am UK & Ireland 10pm CSI: Miami BBC2, 9PM
Poker Tour 10.55pm CSI: NY Justin Rowlatt examines China’s role as
1.15am Bull Run 1.40am World 11.55pm Law & Order a rising economic superpower,
B-Boy Series 2.35am FIS World 12.50am SuperCasino beginning by considering the country’s
Snowboarding Championships 4.05am The FBI Files 4.55am business enterprises in Africa.
3am Basketball 3.50am KOTV Animal Rescue Squad. The work of
4.20am ER 5.05am-6am Bear an animal sanctuary. 5.10am Wildlife
Grylls: Born Survivor SOS 5.35am-6am House Doctor

SKY SPORTS 1 BRITISH EUROSPORT SKY LIVING Cleveland Show 10.35pm Bob’s Colour 4.40am Nasa’s Greatest
SATELLITE & CABLE

7pm Sky Sports News at Seven
7.30pm Live Nations Cup
Football 10pm Revista De La
Liga 11pm Football Asia
11.30pm Hyundai A League
Football 12am Nations Cup
Football 1.30am Revista De La
Liga 2.30am Football Asia 3am
Hyundai A League Football
3.30am Nations Cup Football
5am-6am Revista De La Liga
SKY SPORTS 2
6.30pm Cricket World Cup
7.30pm Live Greyhound Racing
10pm Poker 11.30pm Kings of
the Snow 12am Cricket World
Cup 1am-2.30am Poker
SKY SPORTS 3
7pm Premier League Bowls
8pm British Basketball 10pm
Cricket World Cup 11pm Golfing
World 12am Golf 12.30am
Sports Unlimited 1.30am British
Basketball 3.30am-4.30am
World Match Tour Sailing
1pm Live WTA Tennis 6pm Live
International Football 6.45pm
Alpine Skiing 7pm Live
International Football 8pm
Cycling 8.45pm Strongest Man
9.45pm Extreme Sports:
Freeride Spirit: Extreme sports
action. 10.15pm Motor Racing:
The Rolex 24 at Daytona.
11.15pm-12.30am Alpine Skiing
ESPN
7pm ESPN Kicks: Premier
League 7.15pm NBA Tonight
7.45pm Eredivisie Review Show
9pm ESPN Kicks: Premier
League 9.15pm Basketball
10pm Eredivisie Review Show
11pm ESPN Kicks: Premier
League 11.15pm ESPN Kicks:
Serie A 11.30pm Baseball
Tonight 12am Live NHL Ice
Hockey 2.30am ESPN Press
Pass 3am Bundesliga Review
Show 4.15am ESPN Game of
the Week 4.45am-6am
Eredivisie Review Show
7pm Ghost Whisperer 8pm
Cougar Town 9pm Fat Families
10pm Bridalplasty 11pm
Criminal Minds 12am CSI
2.40am Charmed 4.20am Four
Weddings 5.10am-6am Maury
BBC THREE
7pm Michel Roux’s Service 8pm
Snog, Marry, Avoid? 8.30pm
Hotter Than My Daughter 9pm
Sun, Sex and Suspicious Parents
10pm EastEnders 10.30pm
Coming of Age 11pm Family
Guy 11.45pm Snog, Marry,
Avoid? 12.15am Hotter Than
My Daughter 12.45am Sun, Sex
and Suspicious Parents 1.45am
Coming of Age 2.15am Young,
Jobless and Living at Home
3.15am Michel Roux’s Service
4.15am-5.15am Cannabis:
What’s the Harm?
E4
7pm Hollyoaks 7.30pm Friends
9pm 90210 10pm The
Burgers 11.05pm Shameless Missions 5.30am-6am How
12.10am Skins 1.10am Scrubs Does That Work?
1.55am Shameless 2.50am
Skins 3.45am Style Her Famous DISCOVERY HOME &
4.05am Life Unexpected HEALTH
4.50am-6am Switched 7pm A Baby Story 8pm Eat THE BIG C
Yourself Sexy with Gillian 9pm CHANNEL 4, 11.05PM
HISTORY Chopper Rescue 9.30pm A&E: New series. Comedy, starring Laura
7pm Heir Hunters 8pm Outback 10pm Hospital 11pm Linney as suburban teacher Cathy, who
Warriors 9pm Ancients Your Kid Ate What? 12am discovers she has cancer and decides
Behaving Badly 10pm Battles Chopper Rescue 12.30am A&E: to stop playing by the rules.
BC 12am Ancients Behaving Outback 1am Hospital 2am
Badly 1am Warriors 2am Cities Your Kid Ate What? 3am Eat
of the Underworld 3am Yourself Sexy with Gillian 4am
Dinosaur Secrets 4am UFO Files Bringing Home Baby 5am-6am
5am-6am Ancient Discoveries A Baby Story
DISCOVERY SKY1
8pm How Do They Do It? 8pm Hawaii Five-O 10pm Got
8.30pm How It’s Made 9pm to Dance 11.30pm A League of
Swords: Life on the Line 10pm Their Own 12am Mental 1am
Extreme Engineering 11pm Road Wars 2.25am Bite Size CSI: CRIME SCENE INVESTIGATION
Aircrash Confidential 12am Brainiac 2.40am Justin Lee CHANNEL 5, 9PM
Bear Grylls: Born Survivor 1am Collins: Ten Pin Bowler 3.30am Nick and Sara discover human remains
Deadliest Catch 2am Future The 4400 4.20am Don’t Forget in the home of a compulsive hoarder,
Weapons 3am Hitler’s Henchmen the Lyrics 5.10am-6am Sell Me and unearth dark secrets about the
3.50am World War Two in HD the Answer woman’s family.

COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

QUICK CROSSWORD
   

SUDOKU KAKURO
30 10 10 19 31 7 17 7 
28 19
  
12 27
Place the numbers from 1 to 9 in each empty cell so that each 42 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 8 23
23 24 8
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 20 4 14
  
above or to the left of it. 33 10
You can only use the digits 1-9 29 
   and you must not use the
21 8
45   
same digit twice in a block.
    The same digit may occur 41  
26 11
   more than once in a row or
column, but it must be in a
5
9
6
23
6
 
13 12
   separate block.
16 9 11
14 20
  30 29
 

   ACROSS DOWN
1 Capital of Belarus (5) 1 Handbook (6)
  
    WORDWHEEL O R
3 Court game resembling
handball (5)
7 Star which ejects material (4)
2 Oil-bearing
laminated
rock (5)
Using only the letters in the Wordwheel, you have 9 Emotional wound (6) 4 Iconic mental
   ten minutes to find as many words as possible,
E I 10 Succulent plant with spikes representation (5)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters N of showy flowers (4)
11 Shaft on which a
5 Kill (4)
6 Unwavering (9)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
A N wheel rotates (4)
12 Dexterous (5)
8 Device used to
control a flow (5)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
C G 15 Short line at the end
of the main strokes
13 Picture recorded
by a camera (5)
QUICK CROSSWORD 5 7 6 9 8 7 1 2
of a character (5) 14 Spoil the

S T O O P T I G H T
2 6 5 7 4 1 8 3 9 SUDOKU         
17 Pigmented spot on the skin (4)
19 Assist or encourage,
appearance of (6)
16 Indian side
3 2 8 7 2 9
W P A W N E          usually in wrongdoing (4) dish of yogurt
A S H E N T S A R S
1 4 2 5 3 2 1
        
R R C T O 9 5 1 3 4 8 20 Ludicrous acts done and chopped
        
M E G A L O M A N I A 8 3 1 4 2 5 9 7 6 for fun (6) cucumbers (5)
        
M T
F A M I L
L
I A
I C
R I S E
9 8
6 1 3
9 4 5
1 8
1
5 7
WORDWHEEL         
21 State of deep
unconsciousness (4)
17 Holy city (5)
18 Farm
N V C C B         
8 7 9 4 8 9 The nine-letter word was 22 Country, capital outbuilding (4)
P A Y E E M A C R O
T T H U S N 2 9 7 1 5 3 4 6 8         
M E D I C G E T B Y 3 7 1 4 2 1 3 6
NOMINATED         
Kathmandu (5)
23 Emblem (5)
 Sport
26
Blatter wants a summer World Cup Pic: PA
Blatter: Qatar
World Cup will
be in summer
▲
FOOTBALL
BY JAMES GOLDMAN
FIFA president Sepp Blatter has given
the strongest indication to date that
the 2022 World Cup in Qatar will be
played during the summer.
Concerns over extreme tempera-
tures in the Gulf region, which can
rise up to 50 degrees centigrade in
July, led to suggestions that the tour-
nament could be staged in winter.
Despite the ramifications staging a
tournament at that time of the year
would have on the scheduling of the
major domestic European leagues and
Uefa competitions, Blatter himself
entertained the proposal last
December at the Club World Cup, say-
ing: “I definitely support the idea to
play in winter here [in the Middle
East], when the climate is appropri-
ate.”
But Blatter appears to have per-
formed something of a u-turn, con-
firming that putting on a traditional
summer World Cup is firmly on the
governing body’s agenda.
“I think for the time being this
matter is on ice. We have just signed
the final documents and the delega-
tion from Qatar was here in Fifa
House, and everything is settled now,
but it’s settled for summer and all the
64 matches in the territory of Qatar.”
Life bans for fixing the only
way to rid game of scourge
CRICKET COMMENT
ANDY LLOYD
A
T some point during the loom-
ing Cricket World Cup there
will be an unusual result; a
minnow will beat one of the
big teams, or someone will claw back
from an impossible position. The
immediate reaction among some
people will be: it’s a fix. And for that I
blame the International Cricket
Council.
The game’s governing body had
the perfect chance over the weekend
to show that corruption will absolute-
ly not be tolerated. They found
Theo: World
Cup snub the
making of me
▲
FOOTBALL
BY JAMES GOLDMAN
ARSENAL’S Theo Walcott firmly
believes missing out on last summer’s
World Cup has turned out to be a
blessing in disguise.
Having featured in the three warm-
up matches leading up to the
announcement of Fabio Capello’s
squad, despite some indifferent form,
Walcott was expected to play a signif-
icant role in South Africa.
Capello, however, lived up
to his reputation for never
allowing sentiment to
cloud a difficult selec-
tion decision and cut
Walcott from the 23-
man roster, delivering
the news by mobile
phone while the for-
ward was relaxing on
the golf course.
Though distraught at the
time, Walcott, 21, is sage enough
now to recognise the unscheduled
break in a career that has lurched
from one extreme to the next has
been of huge benefit, while the talks
he recently sought with Capello in
order to clarify the reasons behind his
Salman Butt, Mohammad Asif and
Mohammad Amir (right) guilty of
involvement in spot-fixing, and
gave the Pakistan trio bans rang-
ing from five to 10 years.
Why the different levels of
ban? If a player is guilty of that
kind of offence then I don’t
think they should be allowed to
play cricket ever again. For
me, that’s not draconian.
The stench of corrup-
tion has been pollut-
ing the game for
some time now and
unless really, really
drastic action is
taken then fixing
will rear its
head again.
People may
get banned
temporarily
for drug-tak-
ing, and are
then rehabilitated
CITYA.M. 8 FEBRUARY 2011
World Cup omission have given him
renewed peace of mind ahead of
tomorrow’s friendly against
Denmark.
“I had a good pre-season and start-
ed the season brightly, it’s always nice
when the manager’s got faith in you
– even though I didn’t go to the
World Cup,” he said. “I’ve had ups and
downs in my career and I felt I needed
that mental break from it all so it
may have done me a favour.
“It was his decision to make and
I respected it. It’s helped me
out so much this season,
having that break and
those quotes from the
manager as well.”
Those quotes
Walcott mentions refer
to Capello’s admission, Walcott hasn’t scored
last month, that leaving for England since 2008
the former Southampton Pic: ACTION IMAGES
starlet behind was an error
of judgement on his part.
Walcott added: “I wanted to
know why I didn’t go and I had a con- ances have been better this season. It and Walcott is billing the 19-year-old
versation with him. puts a smile on your face if the man- as the English Cesc Fabregas.
“It’s got my mind at ease, I can ager’s thinking it’s a mistake.” He said: “Cesc spots everything. But
build on the manager’s belief in me Walcott’s club colleague Jack Jack breaks down the play very well
and I think I need to start believing in Wilshere is likely to make his first too. I’m sure if he’s given the chance
myself – which I have, my perform- start for the senior side tomorrow, he will grab it with both hands.”
into the game. But I see fixing as
far more damaging to cricket;
it’s tantamount to fraud.
Nothing less than the
future of the game is at
stake here.
Strauss receives Swann boost
Sure, events like the Ashes
series don’t have trouble
attracting big crowds but
and brands Aussie tour a success
there wasn’t so much
demand for the subse- gotten as a result of an ODI campaign
▲
CRICKET
quent 50-over matches. BY JAMES GOLDMAN which saw England run out of steam,
Crowds won’t come if and bowling options.
they don’t believe they are ENGLAND captain Andrew Strauss Asked if the end to the tour had tar-
seeing a fair sporting con- insists his side’s tour of Australia nished the Ashes memory, Strauss
test. should still be considered mission said: “I don’t think so. They are two
Former England captain accomplished, despite the 6-1 drub- different forms of the game and that
Michael Vaughan recently bing they suffered in the one-day Ashes victory was incredibly special
remarked that this case rep- series. and one that we’ll savour forever.”
resented a great chance for The Test team retained the Ashes Meanwhile, spinner Graeme
the ICC to demonstrate following a comprehensive 3-1 victo- Swann will start bowling again today
how serious they are about ry, in the process becoming the first as he bids to prove his fitness for the
rooting out fixing for good. England side to triumph Down Under World Cup following a knee injury.
In my opinion, the action for 27 years. “I’m not fully fit but I’m getting
they have taken repre- And Strauss believes it’s important there,” he said. I’m a little bit nervous
sents a cop-out. that the post-Ashes euphoria isn’t for- about bowling but I should be fine.”
CITYA.M. 8 FEBRUARY 2011 27

WALCOTT: THEN AND NOW 3-5-2 is back and it adds

WALCOTT 2009/10
Games: 18
Goals: 3
Assists: 2
up to trouble for Chelsea
WALCOTT 2010/11 close than be run all over the place.
Games :17 The system also suits the Reds well
Goals: 7 because it relies on athletic full-backs,
Assists: 5 such as Martin Kelly and Glen
Johnson. In fact they are more like
wing-backs as they get up and down,
* all stats based on Premier League games and allow the three in midfield to stay
narrow and not be outnumbered.
TALKING TACTICS Because it places the emphasis on
WALCOTT’S RIVALS THIS TERM defence it is not a tactic I’d expect
TREVOR STEVEN Liverpool to use every week; against
ADAM JOHNSON good opponents at home they will

I
Games 22, Goals 3, Assists 4. T’S a system that drifted out of need more men in front of the ball.
fashion in the Premier League But Dalglish was clever to use it Kubica partially severed his hand in Sunday’s crash Picture: ACTION IMAGES
SHAUN WRIGHT-PHILLIPS some years ago, but 3-5-2 worked a against Chelsea for other reasons too.

Renault boss defends

Games 4, Goals 0, Assists 0.
JAMES MILNER
Games 23, Goals 0, Assists 5.
treat for Kenny Dalglish and The Blues clearly did not have a plan to
Liverpool at Chelsea on Sunday. It counteract it, and Dalglish probably
smothered the attacking threat of the guessed they wouldn’t. This is because
home side’s three forwards, allowing Torres had only joined the club days

Kubica rally decision

the improving Reds to spoil Fernando
Torres’ debut with a shock win.
AARON LENNON Lining up in 3-5-2 is particularly use-
Games 22, Goals 3, Assists 2. ful away from home against quality
opposition, as it’s a formation that
ASHLEY YOUNG offers defensive stability and makes it
Games 22, Goals 4, Assists 6. hard for strikers to find space.
earlier and had spent little time train-
ing with the team.
The defeat gives Carlo Ancelotti
food for thought. The best way to beat
a 3-5-2 with three forwards is to have
one drop into a deeper role, playing as motor racing,” said Boullier. “It was
a classic No10 (Fig 2). Peter Beardsley agreed between us that he keep doing

STEWART DOWNING
Games 26, Goals 5, Assists 5.
Chelsea’s front three struggled to find
room and got in each others’ way,
partly because none of them like to
drift out wide (Fig 1).
Playing three centre-backs allowed
Liverpool’s defenders to mark their
filled that position brilliantly.
However, Ancelotti looks like stick-
ing with his three strikers, and none
of them naturally drop off. In any case,
he doesn’t have a creative No10 in his
squad, now that Deco has gone. Other
▲
FORMULA ONE
BY FRANK DALLERES the rallies because it was part of his
balance in his life. We knew the risks
RENAULT chiefs have defended the of doing the rally; he knew it as well. It
decision to let driver Robert Kubica was agreed together.”
compete in the rally which almost The hand specialist who operated
ended his motorsport career. on Kubica offered no guarantees that

Wilshere avoids FA men tightly, knowing they won’t be

outnumbered. This suits the likes of
Jamie Carragher, who prefers to get in
teams will have seen the system work
for Liverpool; now the Chelsea coach
will have to find a way round it.
The Polish driver, 26, needed seven
hours of surgery and spent the night
in an induced coma after breaking his
he would recover sufficiently to return
to the grid. “It’s impossible to predict,”
said Dr Igor Rosello. “With the nerve
wrap over tweeting 1 2
hand, arm and leg in a crash on
Sunday.
system you never know, and a lot will
depend on the patient’s will.”
Doctors warned yesterday it is too Kubica has, however, returned from
early to predict whether he will race serious accidents before and Boullier
ARSENAL’S Jack Wilshere will not again, as his hand was partially severed refused to rule him out for longer
face a fine for his comments on in the collision with a church wall. than two months. “He is definitely out
Twitter about referee Phil Dowd. Kubica was taking part in the Ronde for a couple of months,” he added.
The FA looked into the matter after di Andora rally in Italy just weeks “The recovery will be quicker than one
Wilshere tweeted: “Inconsistent ref- before the start of the 2011 Formula year but it is a bit early to know exact-
ereeing needs to stop, it’s killing the One season next month. Some F1 ly how long he will need.”
game.” Former Liverpool star Ryan teams prevent their highly-paid driv- Former Renault boss Flavio Britore
Babel was fined in January for a post ers from indulging in dangerous pur- predicted he would be out for six
on the social networking site. suits away from the track, but Renault months after visiting him in hospital
boss Eric Boullier said they had grant- yesterday. He said: “Kubica is an
Three centre-backs will nullify three narrow for- A No10 is one way to beat a back three, as it draws ed permission for Kubica to take part. extraordinary guy with great poten-
wards, as Liverpool did at Chelsea on Sunday one defender out, creating space for other strikers “Robert is a true racer, his life is tial of recovery.”

Powell to miss
Simpson-Daniel and Scotland game
SPORT | IN BRIEF
McClaren given the sack were not convinced that July. “I haven’t heard from

Corbisiero called up
FOOTBALL: Former we could have a stable col- their camp since
England manager Steve laboration with Steve December,” said Booth.
through injury McClaren has been sacked
by German Bundesliga
side Wolfsburg. In 21
McClaren until the end of
the season.” Nadal lands top award
GENERAL: World tennis
games at the helm, Haye camp deny deal No1 Rafael Nadal has been
▲

RUGBY UNION McClaren managed just BOXING: David Haye’s named Laureus World
his last senior international cap four BY JAMES GOLDMAN five wins and leaves the manager Adam Booth has Sportsman of the Year.
▲

RUGBY UNION
BY JAMES GOLDMAN
ENGLAND have called up London
Irish prop Alex Corbisiero and
Gloucester wing James Simpson-
Daniel to their squad ahead of
Saturday’s RBS 6 Nations clash with
Italy.
Corbisiero (right)
has replaced the
Wasps loose-head
Tim Payne, who
has returned to his
club for treatment on
a sternum injury.
Simpson-Daniel joined
up with the senior squad as
cover for Nick Abendanon,
who is struggling with a toe
problem.
Both men played a part in
the Saxons’ thumping 45-17
win over Italy A at Worcester
last week, a game in which
Simpson-Daniel, who won
years ago, scored two tries in.
Meanwhile, stand-in England cap-
tain Mike Tindall has urged his side
not to get carried away with the open-
ing RBS 6 Nations victory over Wales.
The Red Rose are now well placed
to claim their first title since 2003
with home fixtures against Italy,
France and Scotland
coming up in succes-
sion.
But Tindall
warned England not
to let their standards
slip against the Azzurri.
“You hope it will be an
important win in the
team’s development – but
we mustn’t get ahead of our-
selves,” said Tindall. “We have
to use the win as a stepping
stone. Italy won’t lie down to
let us win. We have to con-
stantly demand performanc-
es of ourselves.”
club, champions just two dismissed the suggestion German Martin Kaymer
WALES’ No8 Andy Powell has been seasons ago, sitting 12th that the WBA heavy- won the Laureus World
ruled out of Saturday’s RBS 6 Nations in the 18-team top flight. weight champion has been Breakthrough of the Year
clash against Scotland at Murrayfield Wolfsburg chief executive offered a date to fight Award after winning the
because of a shoulder injury. Dieter Hoeness said: “We Wladimir Klitschko on 2 US PGA Championship.
Powell picked up the knock during
Friday’s defeat against England and
was replaced by former captain Ryan
Jones, who is likely to step in again.
Results
=FFK98CC KF;8PËJ;@8IP
The Wasps star joins the likes of =ffkYXcc.%+,gdlec\jjjkXk\[
AF?EJKFE<ËJG8@EKKIFG?P
Adam Jones, Gethin Jenkins, Leigh JFLK?<IE8I<8=@E8CJ<:FE;C<> egfn\i=ffkYXccC\X^l\Fe\
Halfpenny, George North and Tom <o\k\i%%%%%%%%%%%%%%%%%%%%'  ( 9i\ek]fi[%%%%%%%%%%%%%%%%%% )  ) C\pkfeFi`\ekmJn`e[fe#IfZ_[Xc\m9i`jkfcIfm\ij%%%%%%%%%%%%%%%%%%%%%%%%%
Shanklin on a lengthy casualty list, EXi[`\ccf0' JXle[\ij)' egfn\i=ffkYXccC\X^l\Knf
8kk1,#*)) 8c\oXe[\i)- 9lipmJk\m\eX^\#>`cc`e^_XdmIfk_\i_Xd#?\i\]fi[m
but winger Morgan Stoddart is likely DXZZc\j]`\c[#C`eZfce:`kpmJ_i\njYlip#Dfi\ZXdY\m8c[\ij_fk
8^^1)$*%
to feature despite breaking a bone in Af_ejkfe\ËjGX`ekKifg_pEfik_\ie8i\X=`eXc
his hand during the Cardiff opener. 8D<I@:8E=FFK98CC J\Zfe[C\^
Jlg\i9fncOCM:fnYfpjJkX[`ld#8ic`e^kfe#K\oXj Ç ?l[[\ij]`\c[' m:Xic`jc\+ %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
Meanwhile, Ireland winger Tommy >i\\e9XpGXZb\ij*(G`kkjYli^_Jk\\c\ij),% K\ee\ekjJZfkk`j_:lg=`]k_Ifle[
Bowe has been ruled out of con- JkAf_ejkfe\mGXik`Zb%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
tention for Sunday’s clash with >FC=
IL>9PC<8>L<
France. G?F<E@OFG<EJZfkkj[Xc\#8i`qfeX ÇLJ8lec\jjjkXk\[2 Efik_\ieIX`c:lg.%*' 1N_`k\_Xm\emNfib`e^kfe%
Bowe, who missed Saturday’s last- =`eXcIfle[ 1)--DN`cjfe-,-+-/-0DN`cjfenfeXkj\Z$
fe[gcXp$f]]_fc\ #A;l]e\i-,-/-.--%)-/MJ`e^_=`a -0 IL>9PLE@FE
gasp 13-11 victory over Italy in Rome, -,-/--#DCX`i[JZf -/.(-+-,%)-0ENXke\p.'---, 9i`k`j_@i`j_:lgGffc8.%*' 1:lii`\mNfiZ\jk\i%Gffc8
has been omitted from an extended -/#A%9%?fcd\j-,.'-.-.#>Nff[cXe[-/---0--% .%(, 1JnXej\Xm9\[]fi[%
squad as he continues his rehabilita-
tion from a knee injury. email sport@cityam.com
 Bruised. Not broken.
(Guaranteed stops from Capital Spreads)

With Capital Spreads’ guaranteed stops, you don’t have to be chained to your screens from
morning to night. You can trade with complete confidence that if things go against you, we’ll
pull you out of a trade at a guaranteed level, thus limiting your losses.

Find out more at capitalspreads.com

Spread betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial
deposit. These trading products may not be suitable for all investors so seek independent advice if necessary.

Capital Spreads is a trading name of London Capital Group Ltd, which is authorised and regulated by the Financial Services Authority and a member of the London Stock Exchange. Registered address:
12 Appold St, London, EC2A 2AW. Registered number: 3218125.