BUSINESS WITH PERSONALITY
WHY BUSINESS CAN’T
Issue 1,338 Wednesday 9 March 2011
EUROCRATS BACK
NEW TAX ON CITY
TAX
▲
BY JULIET SAMUEL
THE European Parliament voted yester-
day to slap a Tobin tax on all financial
transactions that pass through
Europe, in a bid to raise €200bn
(£172bn) for EU spending.
The tax would disproportionately
hit the City, Europe’s financial capital,
at a time when banks are struggling to
build up their capital bases.
The EU Parliament said the propos-
al, to impose a 0.05 per cent tax on
“every type of transaction” at EU-level,
is aimed to “help finance budgets,
reduce public deficits and fight specu-
lation”.
The EU is keen to find new ways to
raise cash for itself and sees the
region’s banks as a ripe target for extra
revenue-raising, claiming the tax
would make the industry pay for the
crisis.
The vote would require the consent
of member states to become law, but
the margin by which it passed – 529 to
127 – will force the European
Commission to draw up plans for its
implementation.
“We want to send out an institution-
al signal saying that the private sector
bears its part of the responsibility for
the crisis,” said German MEP Martin
Schulz.
Critics fear the charge, dubbed a
“Robin Hood tax” by supporters, will
drive capital flows outside the EU.
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The EU Parliament voted in favour of a so-called “Robin Hood tax” that would disproportionately hit London
The CBI’s Brussels director, Sean
McGuire, said: “It would hamper the
EU’s long-term competitiveness as a
leading centre for financial services
companies, and ultimately have a neg-
ative impact on jobs and growth.”
He added that the tax would also be
passed on to consumers.
The British Bankers’ Association
said: “It would require simultaneous
worldwide application to succeed, oth-
erwise the business would simply
ARSENAL
www.cityam.com
migrate elsewhere, along with the
jobs, the tax revenues and the rest.”
The transaction tax vote comes a
day after the EU Parliament’s
Economic Affairs Committee passed a
motion to ban trading of naked credit
default swaps (CDS) on sovereign debt
and to force traders to settle naked
short sales at the end of each day.
The measures, which must be nego-
tiated by European finance ministers,
would mean that traders could not
£/$ 1.62 unc £/¤ 1.16 unc ¤/$ 1.39 t-0.01
Picture: GETTY
buy CDSs to insure sovereign debt that
they did not own.
“They’re trying to say hedging is OK
but speculating isn’t,” said an indus-
try source. “But if they ban naked
trading, there’ll no one for the worthy
hedgers to trade with. They’ll dry up
the market.”
A naked trade is a bet on a derivative
where the trader does not own the
underlying asset.
ALLISTER HEATH: P2
OUTGUNNED
BARCELONA TOO
GOOD FOR NORTH
LONDONERS P34-35
FREE
Hester could
get £4.5m in
bonus deal
▲
BANKING
BY RICHARD PARTINGTON
THE CHIEF executive of state-owned
lender Royal Bank of Scotland (RBS)
could receive a bonus of up to £4.5m,
under a long-term incentive scheme
revealed last night.
Stephen Hester could take home the
all-share reward if he hits strict perform-
ance targets over the next three years,
on top of a £2m bonus he will get for last
year.
The payment comes as part of an all-
share bonus pool worth up to £28m for
nine of RBS’ top staff, including Hester.
RBS last night revealed its long-term
incentive plan ahead of further bonus
disclosures next week, agreed under the
government’s Project Merlin talks.
Hester’s award of 10.1m shares in the
bank will vest in March 2014 and will be
dependent on him sufficiently turning
around the state-owned lender as well as
meeting other strategic targets.
The bank’s second highest paid execu-
tive under the long-term incentive plan
revealed last night was finance director
Bruce van Saun, who will be in line for a
£2.8m reward if he hits targets.
RBS could come under renewed
scrutiny for its bonus plans as a result of
its 83 per cent taxpayer ownership, yet
the bank last night defended its long-
term reward scheme.
A spokesperson said: “These awards
follow exhaustive consultation with our
shareholders and we believe they appro-
priately balance demonstrating
restraint while remaining fully support-
ive of our leadership through the RBS
turnaround plan.”
Certified Distribution
03/01/11 till 30/01/11 is 97,465
 2 News
Why Britain must reject a Tobin tax
EDITOR’S LETTER
ALLISTER HEATH
IT is amazing how many intelligent
people believe in free lunches. The lat-
est instance of this bizarre intellectual
affliction can be found in yesterday’s
vote by MEPs in Brussels to slap a
Tobin tax on financial transactions in
the EU. The vote fortunately has no
legal power, but European parliamen-
tarians believe their scheme would
raise €200bn (£172bn) a year. Weirdly,
they don’t think that grabbing such a
huge chunk of cash – roughly speak-
ing, it would wipe out all profits at
investment banks and wealth man-
agers – would have any effect on jobs,
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WHAT THE OTHER PAPERS SAY THIS MORNING
MOVE TO SYNTHETIC US JUNK BONDS
Demand is growing for “synthetic”
financial instruments that enable
investors to take positions in the US
junk bond market without owning
the underlying securities. The instru-
ments, created by using credit deriva-
tives on junk bond or high-yield
indices, resemble transactions linked
to US mortgages that proliferated
before the financial crisis. The col-
lapse of these synthetic mortgage-
backed collateralised debt obligations
when mortgages turned sour was a
big feature of the crisis.
BUILD NOW, PAY LATER PLAN TO SPUR
HOUSING
Housebuilders will be given govern-
ment land to build homes – with no
need to pay until the properties are
built and sold – under radical plans
being considered by ministers. The
plan, “build now, pay later”, would
pension fund returns or anything else.
Even though there would no longer be
any money to be made from trading
in the EU, everybody would stay put,
continuing to buy and sell as before,
albeit for free, and ensuring that all of
the tax money were actually raised –
such altruistic people, these traders.
The MEPs believe the tax would col-
lect £20bn from UK trades, roughly as
much as the total global profits of
London’s largest banks – though of
course it would be paid for by thou-
sands of financial firms and their
investors, including pension funds
and insurance firms, whose returns
from their hedge fund investments
would be decimated. But as the Open
Europe think-tank points out, the real
cost would be even greater. The World
Federation of Exchanges puts the total
value of financial transactions in the
UK at £600 trillion a year. On the eco-
nomically illiterate assumptions used
by the MEPs, a Tobin tax would thus
raise between £60bn (at a rate of 0.01
per cent) and £300bn (at 0.05 per cent).
BC Partners
raises €4bn
PRIVATE EQUITY
▲
BY RICHARD PARTINGTON
LONDON-based private equity house
BC Partners has raised €4bn (£3.4bn)
towards a buyout fund, as it builds one
of the largest cash stockpiles since the
financial crisis.
Investors in the firm were told yes-
terday that it had reached a point
where it could start to use the funds.
The amount exceeds the €3bn BC
Partners had expected to raise by this
point. It is aiming to build a €6bn fund
by the end of this year.
Seen as a bellweather for the private
equity industry due to its longevity,
the firm’s fundraising will be closely
watched by houses in the US and else-
where looking to drum up investor
interest.
Private equity firms have struggled
to raise capital since the financial cri-
provide incentives for housebuilders
by easing their cash flow problems
with projects on state-owned land. It
is expected to be among an array of
“growth” measures to be made public
in the run-up to the Budget on March
23.
LIBYAN CENTRAL BANK CHIEF
SURFACES
The whereabouts of the governor of
Libya’s central bank, the man who
holds the key to the Gaddafi regime’s
finances, have confounded officials,
diplomats and bankers who have been
desperate to find him over the past
two weeks. Farhat Omar Bengdara has
spent much of the time since the out-
break of the uprising against
Muammer Gaddafi outside Libya. Late
on Tuesday night the governor finally
surfaced: in an e-mail sent to the
Financial Times, he said he had been
informed that the secretary of plan-
ning and finance had been appointed
as acting governor and confirmed that
he had been in Istanbul.
Taxing just derivative, equity and
bond trades would yield £40bn-
£180bn. Compare that to UK corpora-
tion tax revenues of £43bn and
income tax of £150bn and you realise
that MEPs are plotting the biggest tax
hike in British history, one that would
destroy the economy at the stroke of a
pen – and equally astonishingly,
would transfer these resources from
the UK to Brussels. Unbelievable – lit-
erally. Such sums could not possibly
be raised in this way. Transactions
would cease to be conducted in the
EU. Tens of thousands of jobs would be
lost overnight and the City of London
would be destroyed. The tax would
raise a couple of billion at most.
Sweden is the only country that has
ever imposed a unilateral Tobin tax;
the experiment was an unmitigated
disaster in the 1980s and was reversed.
Instead of raising 1.5bn kroner on
bonds alone, as predicted, the tax col-
lected 50m kroner a year. The cost of
government borrowing went up, as
investors demanded greater compen-
sis, as investors have reduced the num-
ber of companies they invest with and
how much they put with their pre-
ferred managers. Last year, firms
raised $225bn (£139bn) globally, the
lowest amount since 2004. In 2007,
prior to the collapse of Lehman
Brothers, private equity houses raised
almost $700bn worldwide, according
to data provider Preqin.
BC Partners won’t use its war chest
to go on a spending spree just yet, as it
still has enough capital to do at least
one more deal from the €5.9bn fund it
raised in 2005.
BC Partners co-chair
Francesco Loredan’s
new fund will be one of
the biggest since before
the financial crisis.
FORGET THE BAD TIMES – THE GLORY
DAYS ARE ON THE WAY BACK FOR
HEDGE FUNDS
Investors are expected to pour record
sums into hedge funds this year, with
estimates suggesting that the figure
could be as high as $210bn. That
would be almost four times higher
than in 2010. Deutsche Bank said that
such investment would increase the
total size of the hedge fund market by
more than 10 per cent, valuing it at
$2.25 trillion (£1.4 trillion).
DECLINE IN FINAL-SALARY PENSION
SCHEMES GATHERS PACE
Final-salary pension schemes are
being closed to existing employees at
the fastest rate on record, according
to new research. Seventeen per cent
of defined-benefit schemes were
closed to new accrual by 2010, up
from 7 per cent in 2009 and only 3
per cent in 2008.
sation to hold a security on which
taxes had just been hiked, eroding the
miniscule revenues collected. The
number of transactions in shares col-
lapsed, eroding capital gains tax
receipts (stock prices also fell as a
result of the tax, further cutting gains
as well as making it harder for firms
to raise capital for expansion and
jobs). Over half of all equity trading
moved to London. During the first
week of the Tobin tax on bonds, trad-
ing slumped 85 per cent, even though
the levy on five-year bonds was only
0.03 per cent. Futures trading col-
lapsed 98 per cent and options trading
stopped altogether.
Even were it imposed globally, a
Tobin tax would still slash transaction
volumes, make markets less liquid,
increase the cost of raising finance for
all firms and punish companies that
operate in more than one currency.
The British government must stand its
ground and block this nonsense.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Billionaire Carl Icahn has grown weary of overseeing others’ money
Icahn returns client cash
HEDGE FUNDS
▲
BY HARRY BANKS
BILLIONAIRE hedge-fund manager
Carl Icahn is returning outside
investors’ capital, marking the end of
an era as he joins a string of promi-
nent stock pickers who no longer
wants the headache of overseeing
other people’s money.
Icahn, known for his knack of pick-
ing winners and his ability to face off
with captains of industry, says he has
grown weary of overseeing others’
ICELAND'S ECONOMY CONTRACTED IN
FOURTH QUARTER
Iceland’s economy shrank again in
the final part of last year after grow-
ing in the third quarter, data showed,
but it closed 2010 with its first year-on-
year growth since the country was hit
by a brutal recession. Gross domestic
product (GDP) shrank 1.5 per cent in
the fourth quarter from the previous
three months, the statistics office said
yesterday. Year-on-year the economy
grew for the first time since before
the financial crisis, rising 0.1 per cent.
FORD CHIEF EXECUTIVE MULALLY
GIVEN $56.5M OF SHARES
Ford, which made its biggest profit in
more than a decade last year, has
rewarded chief executive Alan Mulally
with shares worth $56.5m (£35m). The
man who hired Mulally, executive
chairman Bill Ford Jr., also got stock
worth $42.4m.
CITYA.M. 9 MARCH 2011
NEWS | IN BRIEF
Chinese make a bid for Kalahari
A $1.23bn (£761m) potential takeover
offer by a Chinese state-run group for
Kalahari Minerals may prompt Rio
Tinto to consider its own bid for the
uranium miner. The 290p per share
offer by China Guangdong Nuclear
Power Holding would allow China’s
government access to uranium to
boost its atomic generation efforts.
Rio Tinto owns 14 per cent of Kalahari
and has indicated an interest in buy-
ing smaller miners, raising the
prospect that it could consider a
takeover. Japan’s Itochu Corp also
owns 14 per cent of Kalahari.
AIG pays $6.9bn to US Treasury
AIG has repaid a further $6.9bn
(£4.3bn) of its debt with the US
Treasury, as it attempts to recover
from its crisis-era troubles. The pay-
ment brings the total amount recov-
ered by the US government from its
$411bn Troubled Asset Relief Program
(TARP) to 70 per cent. AIG paid the
money from the proceeds of its sale of
shares in insurer MetLife, shares it
acquired when MetLife bought its
Ailco international unit last year.
money as markets are becoming
more unpredictable and investors
more demanding.
“While it may sound ‘corny’ to
some, the losses that were incurred
by investors in our funds in 2008
bothered me a great deal more, in
many respects, than my own losses,”
the 75-year-old investor wrote in a six-
paragraph-long letter sent to
investors.
Outsiders had invested roughly
$1.75bn (£1bn) in Icahn’s $7bn Icahn
Capital hedge fund.
US, EU AIR-SAFETY PACT NEARS FINAL
APPROVAL
After a delay of almost two years, the
US and the European Union appear
ready to cement an air-safety pact
that both sides say should improve
aviation oversight and save millions
of dollars annually by eliminating
duplicate efforts. The agreement was
reached in 2008 but languished amid
opposition in the U.S. Congress. That
fight now appears resolved. As a
result, the EU on Monday gave its
final approval of the pact, which
could come into force as soon as May.
WARNER BROS. TO OFFER MOVIES
THROUGH FACEBOOK
Warner Bros. Entertainment said it
will start renting movies via
Facebook, the latest effort by movie
studios to find new revenue sources
as consumers buy fewer DVDs and
spend more time online.
CITYA.M. 9 MARCH 2011
RAJARATNAM TRIAL BEGINS
No safe haven
for HSBC if it
leaves London
▲
BANKING
BY JULIET SAMUEL
BANKING regulators in Hong Kong
would face a huge challenge to scale
up their operations if HSBC were to
abandon the City in favour of its for-
mer home, raising questions as to
whether it would be welcomed into a
rival jurisdiction with open arms.
With HSBC’s chairman Douglas
Flint warning that the UK bank levy is
a “location tax” on being head-quar-
tered here, speculation has mounted
that it could leave if the Independent
Banking Commission tries to break up
its operations.
But HSBC’s natural alternative
home, Hong Kong, would not neces-
sarily welcome taking responsibility
for the banking behemoth.
“It’s a very different beast in Hong
Kong,” says Baker & McKenzie’s Tim
Gee. “They’re not lead regulator to a
bank with anything like the scale and
complexity of HSBC.”
The Hong Kong Monetary Authority
(HKMA), which currently supervises
HSBC’s Hong Kong subsidiary, has a
fraction of the banking supervision
staff of the FSA, its equivalent regula-
tor in the UK. The HKMA’s most recent
Japanese food chain Wagamama
to be sold for more than £200m
▲
LEISURE
JAPANESE noodle chain Wagamama is
expected to be sold to private equity
firm Duke Street Capital within the
next two weeks, in a deal worth over
£200m.
The chain’s current owner, Lion
Capital, is currently in talks with the
firm with a view to striking a deal.
Lion had looked to sell Wagamama
earlier last year, after it appointed
investment bank Rothschild to advise
on the process.
The private equity firm had previ-
ously considered an initial public
offering for the firm in 2007, yet abort-
ed its efforts due to choppy stockmar-
News 3
THE CRIMINAL
trial of hedge fund
Horta-Osorio makes his mark
in Lloyds boardroom reshuffle
founder Raj
Rajaratnam, at the
centre of the
biggest US insider
trading probe in
decades, began yes-
terday in New York.
One-time billionaire Weir will leave with immediate from Santander.
▲
BANKING
Rajaratnam, 53, BY RICHARD PARTINGTON effect and Kane will stay with the Two senior employees of the
whose Galleon bank until its annual meeting. Spanish bank’s British operation fol-
Group hedge funds LLOYDS Banking Group will this The development comes as new lowed him to Lloyds after it was
managed $7bn at morning announce a boardroom chief executive António Horta-Osório announced he would replace Eric
their peak, is shake up that will see two senior looks to make his mark on the bank, Daniels as the head of the state-
charged with insid- board directors exit. after his first two weeks in charge. backed lender. Juan Colombás, head
er trading that net- Amongst the casualties are retail One option available to Horta- of risk at Santander UK and Antonio
ted him $45m in banking chief Helen Weir and insur- Osório in the reshuffle could be to Lorenzo, the bank’s chief financial
illegal profit. ance boss Archie Kane, sources have promote senior Lloyds executives, officer, joined Lloyds in January.
told City A.M. including those he has brought in LLOYDS TSB RETAIL BOND: P4
annual report shows that it has 167
people in its banking supervision divi-
sion, versus the FSA’s 988.
The most recent figures available
also show that in 2006, the HKMA was
responsible for regulating banks with
a total of HK$8.3 trillion in assets, less
than half the size of HSBC’s HK$19 tril-
lion global balance sheet last year.
And although HSBC could avoid the
UK’s bank levy by moving its head-
quarters, it might not escape extra cap-
ital requirements.
HKMA says it is “keeping an open
mind” on the issue of surcharges for
systemically important banks.
HKMA added that it does not com-
ment on matters concerning individ-
ual banks. HSBC refused to comment.
ANALYSIS l HSBC Holdings
p
740
720
670.60
700
8 Mar
680
660
640
22 Dec 14 Jan 3 Feb 23 Feb
ket conditions.
Wagamama has expanded rapidly
in recent years. It now operates more
than 60 restaurants in the UK and
almost 40 overseas, including in
Australia and the US.
The group’s eateries in London have
been known to turn over 12 sittings a
day.
Founded in 1992 in London by
entrepreneur Alan Yau, the firm
made more than £15m in pre-tax prof-
its in the year to April 2010.
Yau sold out to Graphite Capital and
entrepreneur Rory McCarthy in 1998,
before Lion bought a majority stake
from Graphite for £103m in 2005.
 4 News CITYA.M. 9 MARCH 2011

Lloyds TSB unveils David Cameron’s ad man

5.5 per cent bond gets top job at Havas
for retail investors PROFILE Jones, who currently heads up

▲
BY RICHARD PARTINGTON
THE ADVERTISING executive behind
David Cameron’s election campaign
has been given the top job at French
BANKING find similar returns elsewhere. advertising group Havas.
▲
Havas’ flagship Euro RSCG advertis-
ing agency, will become one of a
handful of foreign leaders of French
firms.
A Francophile, Jones will also be
one of the youngest chief execu-

BY MARION DAKERS “We applaud companies like David Jones, who helped hand tives in the global advertising
Lloyds that are helping to recreate an Cameron the keys to Number 10 as industry.
LLOYDS TSB launched a five-year cor- active bond market for private his ad man, will become chief exec- During the 2010 general elec-
porate bond for retail investors yes- investors to put them on a par with utive of the firm following the tion campaign he worked close-
terday, following its first offering to institutional investors.” shock resignation of its chief execu- ly with David Cameron and his
private bond investors last June. The bank said the notes will be eli- tive yesterday. former communications
The bonds will pay 5.5 per cent gible for trading on the London In an unexpected move, director Andy Coulson.
interest at a fixed rate until the notes Stock Exchange’s electronic order Fernando Rodés told the group’s He was the creative spark
mature in September 2016. Lloyds book for retail bonds, which was board of directors of his plan to behind Cameron’s “dad’s
and Royal Bank of Canada are under- launched in February last year to quit, as the company discussed its nose, mum’s eyes,
writing the scheme. give individuals better access to full-year results. Gordon Brown’s debt”
Lloyds expects to raise at least investment products. The firm said Rodés had quit to campaign but not the
£50m from the bonds, which will be Seven new bonds have been intro- “give a new direction to his personal infamous “I’ll cut the
offered to individuals for a minimum duced for the new platform in the and family entrepreneurial activi- deficit – not the NHS”
investment of £1,000 with £100 units year since launch, with companies ties” but that he would “remain poster series.
above this, as part of its scheme to including Tesco, John Lewis and associated” with the group. His RSCG firm has
issue £50bn of European medium Provident Financial entering the Havas, the fifth largest advertis- been the Conservatives’
term notes. market. Lloyds TSB’s first corporate ing group in the world, reported a ad agency since 2007
Killik & Co senior partner Paul bond for retail investors, launched in 20 per cent increase in net profit to and also counts US food
Killik said yesterday: “The retail bond June with a 5.375 per cent interest €110m (£97.4m) on revenues of giant Kraft and carmaker
market offers welcome relief to rate and £100 unit price, now €1.56bn. Peugeot as clients.
investors and savers struggling to changes hands for £103.25 per unit.
DAVID JONES

dine out with the stars

Dresdner bankers
at gordon ramsay, marco pierre white + many more
2 course lunch £15, 3 course dinner for £25 set for bonus case
BANKING company was struggling. guaranteed minimum bonus pool
▲

BY MARION DAKERS Commerzbank argues that the cannot be contractually binding

COMMERZBANK faces a high-pro-
file lawsuit from 104 of its invest-
ment bankers over a bonus
dispute, after the Court of Appeal
yesterday rejected the bank’s
request to dismiss the case.
Current and former bankers,
who worked for Dresdner
Kleinwort before Commerzbank
took it over in 2009, are suing to
recover €52m (£44.7m) in bonus
payments from 2008 and will now
prepare for a full trial in 2012.
The case could force
Commerzbank to reveal details of
Dresdner’s bonus decisions and set
a precedent for other banks that
have withheld bonuses when the
bank was entitled to slash bonus
awards because the bank’s eco-
nomic conditions had materially
changed, based on Dresdner’s
€6.2bn losses during the bonus
period.
The court has heard that
bankers learned about a guaran-
teed €400m bonus pool during a
meeting in August 2008, but the
bank ended up paying out around
€272m.
The court yesterday allowed the
bankers to argue that contractual
promises were made during inter-
nal meetings, as well as in written
form, in a blow to the bank’s case.
Judge Andrew Morritt said: “I
see no reason why the promise of a
even though individual employees
cannot at the time point to an enti-
tlement to a specific bonus
payable out of it.
“At the very least each of them
would be entitled to nominal dam-
ages for its breach,” he added.
Commerzbank said it was disap-
pointed by the decision but that it
will defend itself against the
claims.
The bank declined to comment
on whether it might appeal the lat-
est judgment or consider a settle-
ment.
Law firms Stewarts and Mishcon
de Reya are representing the
bankers, while Linklaters is acting
for the bank.

Oil prices fall on output negotiations

as Gaddafi launches attack on rebels
▲

ENERGY
OIL prices fell yesterday after the oil
minister of Kuwait said that OPEC
was in talks about an output
increase.
The commodity has surged on
unrest in the Middle East, most
recently driven by Colonel Gaddafi’s
brutal oppression of anti-govern-
ment protests in Libya.
OPEC said it was considering an
fonefood Search official hike in production for the
first time in more than two years,
Dining on selected dates only, subject to availability and conditions. allaying fears over security of supply.
For full list of participating restaurants and terms & conditions go to www.lastminute.com
In London, Brent crude fell to
around $113m a barrel on the news.
Libya’s ongoing conflict has sent
US crude prices to their highest level
since September 2008, as investors
continue to fret about potential sup-
ply disruption in the Middle East as
unrest and protests spread.
Gaddafi yesterday launched an
assault to recapture towns held by
rebels in the country.
Reports suggest his forces have
devastated Zawiyah, a refinery town
just 30 miles from the capital
Tripoli.
Meanwhile, Prime Minister David
Cameron spoke with US President
Barak Obama to plan an end to the
violence in Libya.
In a phone call yesterday after-
noon, the two leader’s agreed to
coordinate their efforts to end the
fighting.
A Downing Street spokesperson
said: “They agreed that the common
objective in Libya must be an imme-
diate end to brutality and violence;
the departure of Gaddafi from
power as quickly as possible; and a
transition that meets the Libyan
peoples’ aspirations for freedom,
dignity, and a representative govern-
ment.”
CITYA.M. 9 MARCH 2011
ABI NAMES OTTO THORESEN NEW DIRECTOR-GENERAL
BarCap set to
gain broking
mandate at 3i
▲
ADVISORY
BY DAVID HELLIER AND JULIET SAMUEL
BARCLAYS Bank’s fast growing equi-
ties business BarCap was last night
said to be close to winning an impor-
tant new broking appointment at the
international private equity group 3i.
3i has been conducting a regular
review of its brokers, which are cur-
rently Bank of America Merrill Lynch
and JP Morgan.
The group, whose chief executive is
Michael Queen, said it would not for-
malise an appointment until a board
meeting at the end of the month.
“We are reviewing our brokers at the
moment,” a spokesman said.
But City A.M. has been told that
BarCap, whose UK equities capital
markets team is led by Jim Renwick,
is in pole position to win one of the
broking positions from JP Morgan.
If BarCap succeeds in winning the
account it will be a further boost for
the unit, whose recent accounts wins
have included IAG, the airline group
comprised of Iberia and British
Airways, Resolution and BHP. It is also
broker to National Grid.
Earlier this year BarCap overtook
Nomura to break into the top ten of
Credit Suisse
client in court
▲
MINING
A CREDIT Suisse client pleaded guilty
in US federal court yesterday to evad-
ing taxes, confirming that the bank
has become tangled in the US govern-
ment’s latest wave of tax evasion
probes.
Defendant Edward Gurary, of Ohio,
was originally charged with hiding
assets at accounts at Swiss bank UBS,
but he now also admits he hid assets
at Credit Suisse.
US officials said they are investigat-
ing other banks after UBS paid $780m
to settle tax evasion charges. The case
marks the first time Credit Suisse has
been mentioned in the case.
News 5
OTTO Thoresen, the
chief executive of
Aegon’s UK arm,
has been named as
Deutsche Telekom,
Sprint eye US tie-up
the new director-
general of the
Association of
British Insurers
(ABI). The trade
association for
insurance, invest-
ment and savings and Harbinger-backed start-up
▲
TELECOMS
has been overseen BY HARRY BANKS LightSquared about a potential spec-
by Maggie Craig, trum deal with its US operation, T-
ABI’s director for life DEUTSCHE Telekom has held talks Mobile USA.
and savings, since with larger rival Sprint Nextel over a Deutsche Telekom is open to all
Kerrie Kelly left last potential sale of T-Mobile USA in options in the US, chief financial officer
summer after just exchange for a 50 per cent stake each in Timotheus Hoettges said in an email.
six months in the the combined company, sources said Hoettges said the operator was not
post. Thoreson is the yesterday. pressed for time, although the compa-
first industry execu- The company has made no secret of ny acknowledged earlier that it needs
tive in the role. the fact that it has held talks with access to more wireless spectrum in
Picture: Getty smaller companies such as Clearwire coming years for data services.
brokers in terms of FTSE 100 clients.
Bank of America Merrill Lynch is
expected to hang on to the joint bro-
kerage which it nearly lost in 2009
when its relationship broker Mike
Findlay left the firm shortly after its
takeover by Bank of America.
Meanwhile Swiss banking group
UBS yesterday enjoyed a welcome suc-
cess as it won a prestige broking
account with the global drinks group
Diageo. The UBS appointment and
the reappointment of an existing bro-
ker led to speculation that Diageo
might drop Goldman Sachs but as of
yesterday a spokesman for the group
said: “As of today we have three corpo-
rate brokers.” The other adviser is
Swiss group Credit Suisse.
The appointment of UBS will be a
major boost since the firm has lost a
number of clients recently, including
Standard Life and Legal & General.
It would be particularly sweet for
UBS if its appointment knocked
Goldman off the mandate since last
September it lost one of its star bro-
kers Philip Shelley to its rival.
Key to the Diageo decision-making
process is believed to be the powerful
investor relations director Catherine
James.
Madoff trustee London to
has won $9.8bn Copenhagen
from
£
29 .99
FINANCIAL CRIME
THE trustee seeking money for
investors hurt by Bernard Madoff’s
Ponzi scheme said he hopes to begin single
distributing money “in the near inc. taxes
future” but that lawsuits challenging
his efforts are causing delays.
Irving Picard, the trustee, said he
has won $9.8bn (£6bn) in recoveries
since the fraud was uncovered in
December 2008. But most of this sum
is being held, including a $7.2bn set-
tlement from the estate of former
Madoff investor Jeffry Picower that is We fly from London Gatwick, London Stansted and Manchester. Price correct on 14 February for travel between
being challenged by investors who 28 February and 17 April 2011. Variable charges for hold baggage apply and some payment methods attract a
complain the accord blocks other law- handling fee. See website for details. Photo credit: Nicolai Perjesi.
suits against the estate.
 6 News CITYA.M. 9 MARCH 2011

London still
at top for Greek yields
metal trade rise as it sells
€1.6bn T-bills
▲

COMMODITIES
BY KATIE HOPE
LONDON led the way last year as the
top exchange centre for trading of
non-ferrous metals, with a 90 per cent
share of the record 120.3m contracts EUROZONE CRISIS Eurozone benchmark German Bund

turned over.
Overall, exchange trading of com-
modities such as gold and silver
surged by 20 per cent in 2010 as their
popularity as well as the ease of
investing in them increased, accord-
ing to data from financial member-
ship body TheCityUK.
In total commodity assets under
management have now nearly dou-
bled to $380bn (£235.1bn) at the end
of the year, with the bulk invested in
energy and precious metals.
The value of global gold turnover
increased by a quarter in 2010 to a
record $25.1 trillion, while silver trad-
ing increased by 57 per cent to a
record $3.2 trillion, as fears over the
strength of the economic recovery
saw a surge of interest in the per-
ceived safe-haven appeal of precious
metals. Daily reported net trading in
gold on the London Bullion Market
Association averaged $22.5bn in 2010,
up 12 per cent on 2009.
▲
BY STEVE DINNEEN
GREECE’S Public Debt Management
Agency (PDMA) sold €1.625bn
(£1.4bn) of 6-month T-bills yesterday,
with the yield rising by 11 basis
points compared to an auction held
last month.
The sale was well covered with the
bid-cover ratio at 3.6 versus 4.54 in the
previous auction. Greece paid a yield
of 4.75 per cent, up from 4.64 per cent
in the 8 February auction, the debt
agency said.
Foreigners bought nearly a third of
the issue, PDMA chief Petros
Christodoulou said.
The Greek yields were hit by a
Spanish plan to launch a new bond by
syndication, adding to unease in
peripheral markets. The Portuguese
bond yield hovered near record highs
and Italian yield spreads also
widened.
Greek prime minister George Papandreou called Greece’s credit downgrade “unjustified”. Spanish debt underperformed the
following news of Madrid’s plan to
launch a new 15-year bond. The
Spanish issue is understood to be for
between €3bn and €5bn.
Portugal will auction a round of
short-dated bonds this morning as it
seeks to fund itself through markets,
resisting pressure to accept an inter-
national bailout.
The yield on 10-year Portuguese
debt continues to set new highs, in
part driven by rising yields across the
Eurozone as the European Central
Bank prepares markets for a rise in
interest rates. Its 10-year bonds have
yielded more than seven per cent for
more than a month.
Greek Prime Minister George
Papandreou said the EU must adopt a
“safe environment for the euro, and
subsequently for the management of
debt, to convince markets.”
He said Greece’s credit downgrade
by Moody’s Investors Services was
“unjustified”.

@
EU stress
tests easier
than 2010

@
▲
REGULATION
BY JULIET SAMUEL

Hot fares! THE European Banking Authority

(EBA) yesterday began rolling out
stress tests on 88 of the region’s
Fly from Heathrow banks, which together hold 65 per
cent of EU assets.
Europe has promised a more cred-
Dubai from £
319 ible set of tests after only seven
banks failed the last round in 2010 –
none of them Irish, despite the sub-
Lagos from £
347 sequent nationalisation of the coun-
try’s remaining banks.

@
However, the worst-case scenarios
Accra from £
386 that the EBA will use for its tests,
designed by the European Central
Bank, are less severe than those used
Nairobi from £
421 in the 2010 tests. It involves a 0.5 per
cent fall in the euro area economy

Johannesburg 422
from £ this year, and a 15 per cent drop in
European equities – less harsh than
the overall 20 per cent drop mod-
Singapore from £
480 elled in the 2010 tests.
Markets were hoping that a rigor-
ous process could force banks into
Return fares, incl taxes raising capital by highlighting their
exposure to real estate and sovereign
debt crises.
UK banks are expected to fare well,
More offers on KLM.com with PricewaterhouseCoopers’
Richard Barfield saying: “We would
www.cityam.com

expect the results of this round of

stress testing to reveal UK banks to
be in a stronger position than in
Fares quoted are for return flights from Heathrow via Amsterdam, including taxes and charges, which are subject to change. Book 2010.” The bank tests will be a key
by 20/03/11. Travel periods vary. Fares are subject to availability. Credit card surcharge will apply. Specific booking conditions and
the General Conditions of Transportation of KLM and AIR FRANCE apply. Prices correct at 03/03/11.
moment for the EBA, which was
established in January, to prove its
credentials as a regional regulator.
Germany had been pushing for
the results of the tests to remain pri-
vate, but Spain and other states won
an agreement to publish them.
CITYA.M. 9 MARCH 2011 News 7

Antofagasta to
pay $1bn extra Airlines slam
to shareholders
MINING
BAA reaction
▲

CHILE-FOCUSED miner Antofagasta

revealed a huge special dividend of
almost $1bn (£619m) yesterday to
share last year’s rewards from boom-
ing copper prices and increased pro-
Antofagasta chief exec Marcelo Awad has delivered a bumper dividend Picture:REUTERS

ANALYST VIEWS: WHAT DID YOU MAKE OF

to snow chaos
duction.
The firm said pre-tax profit rose 79
ANTOFAGASTA’S RESULTS? Interviews by Marion Dakers & Eric Wilkens was apologetic, telling the committee:

▲
AVIATION
per cent to $2.5bn, boosted by an 18 “We had planned for six centimetres
BY MARION DAKERS
per cent rise in copper production. MICHAEL STARKE | EDISON of snow, in the event we got far more

However, the results missed some
forecasts once one-off gains were
stripped out, largely due to higher
energy costs at the firm’s mines.
“
HEATHROW operator BAA came in for
stiff criticism in front of the transport
The firm had an exceptional year, with copper prices pushing revenues select committee yesterday, with air-
up and operational profits almost doubling. The huge dividend reflects that fact. lines slamming the firm’s handling of
than that... We should have had a plan
which envisaged much more snow.”
BAA is due to publish its own report
on the snow delays later this month.

The $1 per share special dividend
means the company will pay share-
holders 109 per cent of its net earn-
ings for the year.
“We feel confident about having
”
The question is whether it will be able to repeat this – we’ve seen some profit tak- the snow in December.
ing today from those who think that Antofagasta has peaked. Executives from Virgin Atlantic and
British Airways told the committee
that BAA’s organisation problems left
CHARLES COOPER | ORIEL SECURITIES thousands stranded.
Ferrovial, BAA’s Spanish parent,
also said yesterday it was studying
offers for a 10 per cent stake in BAA,
put up for sale to help pay Ferrovial’s
debts.

the dividend,” said chief executive
Marcelo Awad in a call with analysts.
“It underlines the increased produc-
tion and confidence in the future
“
“At the end of the day, if the airport
operators do not provide a service to
It’s broadly been a bumper year, though some figures missed consensus us it is our customers that suffer and
forecasts once one-offs are removed. But given the fact that the firm has account- that is a situation that is not accept-
Chinese operator HNA was yester-
day seen as a leading contender,
though a Ferrovial spokesperson said
no decision has been made.

prospects of the market and the
group.”
The firm has set aside $95m for
fresh exploration – slightly down on
last year. “Capital expenditure will be
”
ed for spending on projects and taking into account higher commodity prices, it’s able to us,” said BA’s operations direc- ANALYSIS l Ferrovial Group
possible that the company could pay out a similar dividend in 2011. tor Andrew Lord.
Virgin chief executive Steve 9.5 €
Ridgway said communication
TOM GIDLEY-KITCHIN | CHARLES STANLEY between BAA and airlines had been 9 8.72

lower compared to the last few years
and we felt it was appropriate to
make a larger return of cash for the
year,” said Awad.
“
poor compared to Gatwick, which he 8 Mar
said worked more closely with carriers 8.5
The dividend shows that Antofagasta is confident about copper prices to minimise disruption.
over the next year and is continuing to increase production quite significantly. It’s Both Virgin and BA called for rules

”
8
The firm’s new Esperanza copper a gesture in favour of greater distribution. The firm’s significant net cash balance that would allow the government to
project produced its first shipment in remains in place and it has a positive exploration programme. fine airports for poor performance. 7.5
January, Awad said. BAA chief executive Colin Matthews 22 Dec 14 Jan 3 Feb 23 Feb
 8 News CITYA.M. 9 MARCH 2011

Tullett blames British consumers like the

staff exodus iPad 2 but think it is pricey
from +30 to +35 and is already show- Apple will want to turn the posi-

for profit fall ing signs of declining again.

There is lower base excitement
about the iPad in Germany but we
have seen a rise there from +13 to
+21.
PRICE WEIGHS ON IMAGE
tive buzz it has created into an
improvement in value perceptions
if it wants to overcome that barrier
to purchase.

CONSUMERS IN WAIT AND SEE MODE

In all three countries there has
▲

FINANCIAL SERVICES in March last year and damages would BRANDINDEX The biggest drag on the index score is been a rise in the index score (which
be decided at a trial this month. value perceptions – in the UK they combines the sentiment scores on
BY ALISON LOCK
“The judge held that there was an STEPHAN SHAKESPEARE even have a negative score. six key measures) but that increase
INTER-DEALER broker Tullett Prebon unlawful conspiracy between BGC This is further developed by the has been much less dramatic than

L
blamed a “raid” on its US employees and its two senior directors to poach AST Wednesday Steve Jobs YouGov TabletTrack, a quarterly sur- buzz (from 17 to 21 in the UK for
by rival BGC Partners for an 11 per the company’s employees,” Tullett unveiled the iPad 2, a revised vey of a nationally representative example).
cent drop in its full-year pre-tax profit said. “The company is seeking sub- design for the tablet that will and tablet owning audience on This suggests that excitement has
yesterday. stantial damages from BGC.” become available in the US tablet perceptions, which shows been created but most people are
Tullett Prebon, the world’s second- It said further cases against former next week and in 25 other countries that price is a key block to the iPad waiting for more evidence before
largest broking intermediary, said employees and BGC were continuing a fortnight later. becoming a mass market product they deliver a verdict.
pre-tax profit fell to £139.7m from in the US, Hong Kong and Singapore. with 31 per cent of rejectors saying Stephan Shakespeare is chief executive of
£157.0m in 2009 while earnings per Tullett said financial markets APPLE CREATES BUZZ IN UK it is too expensive. YouGov.
share fell to 46.4p from 49.2p the pre- remained “unsettled” and it “seems The announcement led to an imme-
vious year. Analysts had expected a reasonable to expect there will be peri- diate rise in buzz score in the UK;
profit of £142m. ods of volatility” throughout 2011. from +20 on the day of the ANALYSIS l iPad BrandIndex ANALYSIS l iPad buzz by country
Chairman Keith Hamill said rev- announcement to +37 by Monday of
30 40
enues shrank four per cent to ANALYSIS l Tullett Prebon this week. Looking at this in combi-
£908.5m from £947.7m in 2009, 430 nation with the attention score, we 35
p 25
“mainly due to the net effect of the 421.00 can see that over half the population 30
broker defections in North America 8 Mar have heard something about the 20
25
following the raid by BGC in the sec- 410 iPad in the last two weeks and a vast
ond half of 2009”. majority have heard something posi- 15 20
Its shares fell 6.3 per cent in trading tive. 15
10
yesterday before closing down 1.4 per 390 Germany Germany
10
cent at 420p. BUT IMPACT IS LESS IN AMERICA 5 US US
Tullett said a court case in London Interestingly, the rise in the US was 5
UK UK
against BGC and ten former Tullett 370 much less marked (admittedly from 0 0
brokers had found in Tullett’s favour 13 Dec 5 Jan 25 Jan 14 Feb 4 Mar a higher starting point); going up 02 Mar 03 Mar 04 Mar 05 Mar 06 Mar 07 Mar 02 Mar 03 Mar 04 Mar 05 Mar 06 Mar 07 Mar

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CITYA.M. 9 MARCH 2011 News 9

2%
Hedge funds set to grow
ANALYSIS l Investor breakdown by type (by AUM)

3% 2%
7% 7%
6%
9%
%
Survey found. The industry managed High demand from institutional

▲
Fund of Funds Foundation & ASSET MANAGEMENT
assets of $1.92 trillion at the end of investors is driving growth. More
Private Bank
Endowment BY ALISON LOCK 2010, according to data from US-based than 80 per cent of sovereign wealth
9%
Insurance
Investment Consultant
Company HEDGE fund investors expect a firm Hedge Fund Research. funds, foundation and endowment
Family Office/High
Net Worth Individual
Sovereign
Wealth Fund
55% bumper 2011 with assets likely to reach
an all-time high of $2.25 trillion (£1.38
Fund managers expect to cut cash
holdings by $29bn in the next six
funds, pension and insurance compa-
nies plan to either add to or maintain
Pensions (private Other trillion), a survey yesterday found. months to put more money to work. their hedge fund allocations.
and public) Net inflows to funds globally are “Bullish sentiment on market per- “We believe the industry is poised to
expected to almost quadruple in 2011 formance, flows and industry dynam- continue to become a more and more
Source: 2011 Deutsche Bank Alternative Investment Survey to $210bn from $55bn in 2010, the ics were the clear messages conveyed significant part of the asset manage-
Deutsche Bank Alternative Investment by the investors,” the report said. ment industry,” the report said.

Man Group Sovereign

wins €1.2bn 1 & 2 bedroom apartments funds surge
mandate through L&Q’s part buy, 11pc in 2010
part rent scheme
▲

HEDGE FUNDS
BY HARRY BANKS
MAN Group has won a mandate to
run €1.2bn (£1bn) for German pen-
sion fund BVK, as the world’s biggest
listed hedge fund firm tries to woo
clients after bleeding assets during
the crisis.
The mandate, first mentioned in
Man’s January trading statement
without identifying the client, will
see Germany’s largest public pension
fund, Bayerische
Versorgungskammer invest this year
in so-called managed accounts – port-
folios where the investor still con-
trols the assets.
Man will provide services such as
operational due diligence and risk
management, although BVK will
choose which hedge funds it invests
in.
Man, which last year bought small-
er rival GLG to bulk up assets and
reduce dependence on computer-
driven funds, has been struggling to
keep pace with the $1.9 trillion hedge
fund industry’s revival since the cred-
it crisis.
In January, the firm revealed it had
seen $1bn of net client outflows in its
third-quarter, mainly due to one
redemption of more than $1bn from
an investor switching out of
European equities.
Shares in the alternative fund
manager edged up 0.7 per cent to
close at 282.45p yesterday.
ANALYSIS l Man Group
315 p 284.40
8 Mar
305
295
285
22 Dec 14 Jan
▲
from ASSET MANAGEMENT
* BY ALISON LOCK
£760 ASSETS in sovereign wealth funds saw
pcm
a second year of double-digit growth
The Artillery, in 2010, new research showed yester-
day.
Shooters Hill SE18 Sovereign wealth funds, held main-
ly in the Middle East, North African
and Asian (MENA) states, grew 11 per
cent to $3.98 trillion (£2.45 trillion) at
the start of 2011 from $3.59 trillion in
2010.
But the investment plans of several
MENA funds including Libya’s $70bn
fund look uncertain as civil unrest
across the region continues, the 2011
Jude Court, Preqin Sovereign Wealth Fund Review
warned. The conflict between gov-
ernment and rebels in Libya “could
Brockley SE4 have ramifications for the future
Enterprise House, investment policies of the Libyan
Investment Authority” as “its man-
date could alter following any politi-
Bromley BR2 from cal change,” the report said. “The
£950* SWFs of both Algeria and Bahrain
could also be affected. Collectively,
pcm the MENA-based SWFs in question
have hundreds of billions of dollars in
assets and changes in their invest-
from ment policies would be widely felt.”
£727* Sam Meakin, managing editor of
the report, said funds’ “significant
pcm collective assets under management”
meant they represent “an important
potential source of capital for fund
managers across all asset classes.”
The Abu Dhabi Investment
Book your viewing Authority is the world’s largest such
fund with $625bn in assets, followed
Call: 0844 406 9800 by the Norwegian state pension fund
with $531bn and two Chinese funds,
the SAFE Investment Company and
Web: www.lqgroup.org.uk the China Investment Corporation,
with $347bn and $332bn respectively.
Industrial and Provident Society 30441R exempt charity. Details correct at time of going to print March 2011. Your home is at Funds’ investment into alternative
risk if you fail to keep up repayments on a mortgage, rent or other loan secured on it. Please make sure you can afford the asset classes such as infrastructure,
repayments before you take out a mortgage. * The figure quoted is based on part buy, part rent and on a percentage share. This
is a guideline and may vary according to individual incomes and circumstances. See website for details. real estate and private equity should
increase this year as they resume
investment plans put on ice during
the downturn.
3 Feb 23 Feb

Managed account deal is vote of confidence in fund manager

AS votes of confidence go, this is
pretty resounding. The fact that
Germany’s largest public pension
fund – a byword for caution and
solidity – has given Man Group a
managed account mandate worth
€1.2bn is good for the alternative
fund manager’s image. No wonder it
is shouting about it.
The mandate will provide a timely
boost for Man’s assets under man-
agement, which grew from $65.9bn
at the end of September (including
the acquisition of GLG Group) to
$68.6bn at the end of December. The
gains were entirely performance
related, however; the firm actually
reported a net outflow of $1.1bn in
its long-only funds, wiping out a net
inflow of $0.1bn in alternatives.
It follows a similar win last year
from the universities superannua-
tion scheme, Britain’s second largest
pension fund, which recently award-
ed Man Group a $1bn managed
account mandate.
Managed accounts – whereby
assets are invested in a hedge fund
strategy but are physically held by an
independent third party – are
increasingly popular. Firstly, these
assets aren’t subject to the kind of
“gates” that hedge funds erected to
stop clients pulling out their cash in
the crisis. They also offer more trans-
parency; clients with managed
accounts get regular performance
updates and can see – and in some
cases veto – the trades made by the
fund manager.
Although the deal will allow Man
to report a healthy inflow at the end
of the month, it is much less lucra-
tive for the likes of Man Group.
Sarah Ing thinks the management
fee will be around 0.5 per cent rather
than the traditional two per cent.
That would still mean an extra €6m
in management fees – with even
more in performance fees should the
manager perform well.
BOTTOMLINE
Analysis by David Crow
 The Capitalist
10
BUSINESS
AS USUAL
AS BORIS
BIKES TO
CANNES
IF you happened to be in Cannes yesterday
afternoon, you would have been treated to
the sight of a middle-aged, straw-haired
man riding a Boris Bike into the centre of
town.
On closer inspection, you would have
spotted that that figure was, in fact, the
London Mayor Boris Johnson, who was
livening up the MIPIM property fair as
only he knows how.
Just hours after delivering his keynote
speech at the convention, Boris was
escorted 6km along the seafront by the
French police, where he and his com-
munications director Guto Harri
joined the last leg of the Aedas
Cycle to Cannes charity ride.
Boris wore a business suit
for his sedate lap of honour,
and on alighting at the
Palais des Festivals, he had
the grace to admit he
looked rather out of
place among the 83 bat-
tle-scarred cyclists from
the property world, who
had cycled 1,500km in
six days.
Other than that, the
riders on the trip – who
included John Wallace,
chief executive of Qatari
Diar; Stuart Carr-Jones,
vice-president of JP Morgan;
and Giles Clark, relation-
ship director at Barclays
Corporate – said the adventure
passed without incident.
Unless you count the “bumps” in
Kent, when two riders fell off on the
A20; the hospitalisation of one of
the eight motorcycle outriders after
a crash near Lyon; or the time the
guide bus got lost, setting the timings
back so much the team had to cycle
through a gorge in the dark.
No wonder there were “tears of
relief” when the group reached its
final destination.
CITYA.M. 9 MARCH 2011
EDITED BY
HARRIET DENNYS
GOT A STORY? EMAIL
thecapitalist@cityam.com
Cartier International Day
set the new record for the fastest lap time
of 49.49 seconds – faster than the previous
record set by Top Gear’s original Stig,
Perry McCarthy, when he opened the eco-
track at the end of January.
At the bottom end of the leaderboard,
Credit Suisse managed to come ninth –
despite calling its team Here for the Beer –
while the slowest lap of the night, 53.43
seconds, was recorded by the team from
ING, otherwise known as Carry on
Karting. Or perhaps they shouldn’t.
SWEEPING PLAINS
THE organisers of the Cartier
International Day at Guards Polo Club
(above) are looking forward to welcoming
the country’s financial leaders to this
NO PAIN, NO GAIN After BOY RACERS year’s event on Sunday 24 July.
GOOD to see that Jon Pain, the IT’S official: Morgan Stanley has the To get City A.M.’s readers in the mood,
former managing director of
supervision at the Financial
delivering his fastest boy racers in the City, after zoom-
ing to victory in the TeamSport go-karting
The Capitalist can reveal this year’s party
will have a Kenyan colonial estate theme,
Services Authority, has returned
to gainful employment after los-
keynote championship at Tower Bridge.
The four Morgan Stanley drivers – Dave
styled with the trappings of the 1940s Rift
Valley heyday including a dramatic struc-
ing out on one of the top jobs at
the regulator in a clash of
speech, Boris Pethers, Will Alderson, Paul Railston and
Mikey Horton (three pictured below) –
ture “more used to being set overlooking
Kenya’s sweeping plains”.
horns with Hector Sants (pic-
tured left).
was escorted scored 100 points to beat the team from
Bank of America Merrill Lynch into second
It remains to be seen how that will
translate to the outskirts of Windsor – but
No matter that Pain
steered the UK’s banks, insur-
along the place with 92 points.
Just to ram the point home, Pethers also
the three-course African-inspired menu is
certain to be memorable.
ance groups and all other
financial services firms
seafront by
through the darkest days of
the financial crisis. When
the French
push came to shove, chancellor
George Osborne persuaded Sants to
police
stay on as chief executive and Pain
was forced to seek career advance-
ment elsewhere.
Pain is having the last laugh though
– he has now been snapped up by KPMG
to join the firm as a partner in its
Financial Services Regulatory Centre of
Excellence, starting in July after the
obligatory period of gardening leave.
If you can describe helping KPMG’s
clients navigate their way through the
new world of financial regulation at a
time of “unprecedented change” as a
laugh, that is. Morgan Stanley’s winning drivers Mikey Horton, Dave Pethers and Paul Railston
 12 Economics CITYA.M. 9 MARCH 2011

Inflation in VIETNAM LOOKS TO HALT DOLLARISATION NEWS | IN BRIEF

US outcry at Gbagbo cocoa grab
A move by Ivory Coast’s Laurent
Gbagbo to take the cocoa sector into

British stores state hands “amounts to theft,” the US

State Department said yesterday. Ivory
Coast state television said that Gbagbo
had issued a decree under which the
state becomes the sole purchaser of
cocoa in the world’s top grower and

still growing handles its export to world markets.

Cocoa futures have broken 30-year
highs since a disputed election in
November that has triggered a power
struggle between Gbagbo and rival pres-
idential claimant Alassane Ouattara,
judged by the United Nations to have
UK ECONOMY tomers,” Robertson added. won.
▲

BY JULIAN HARRIS Weak consumer demand may be

PRICES in British shops rose again in
February, despite a slowdown in food
price inflation, the British Retail
Consortium (BRC) revealed today.
Overall prices grew 0.7 per cent
compared to January, when they
increased by 0.6 per cent on December.
Inflation in February rose to an annu-
alised rate of 2.7 per cent, up from 2.5
per cent the previous month.
“The good news is tough retail com-
petition is keeping shop price infla-
tion well below the wider consumer
price index,” said the BRC’s Stephen
Robertson. CPI inflation is expected to
exceed four per cent in February.
“Even so, non-food inflation would
be much higher if the full impact of
the VAT rise had been passed on to cus-
keeping a lid on food prices.
“Food retailers have had to main-
tain promotions and price cuts at the
high levels we saw in December and
this has helped to mitigate some of the
effects of the underlying inflation,”
said Mike Watkins of Nielsen, which
collates the data.
Food price inflation measured 4.5
per cent year-on-year in February,
down from 4.6 per cent in January.
At the beginning of the year food
prices jumped 1.6 per cent compared
to December, but the monthly
increase to February was only 0.3 per
cent.
“Food inflation appears to have sta-
bilised for now despite on-going pres-
sure from soaring global commodity
costs,” the report said.
UK records highest G7 inflation
The Organisation for Economic Co-oper-
ation and Development’s annual inflation
rate was recorded at 2.1 per cent in
January 2011, unchanged from the pre-
vious month. Of the G7 countries, the UK
(four per cent) and Canada (2.3 per
cent) recorded the highest rates of infla-
tion for January, as the US (1.6 per cent)
and Japan (flat) recorded the lowest.
Sri Lanka holds interest rates
Despite accelerating inflation and above-
trend growth, the central bank of Sri
Lanka kept interest rates unchanged
yesterday, keeping its repo and reverse
VIETNAM undertook measures to save its currency, the dong, from further depreciation repo rates at seven per cent and 8.5 per
yesterday, raising both its refinancing rate and discount rate to 12 per cent, in an cent respectively. Sri Lankan headline
attempt to curb 12.3 per cent inflation. Authorities may also deploy fiscal tightening in inflation jumped from 6.8 per cent to 7.8
a bid to rescue the dong and prevent further “dollarisation” (substitution by US dollars). per cent in February.

Upbeat French
morale boosts
German industrial UK trade deficit expected
despite stronger exports
hopes for GDP orders see rebound
▲

UK ECONOMY
And 45 per cent of trading compa-
THE UK is undergoing a “two speed” nies are concerned that this month’s
▲

EUROZONE ECONOMY EUROZONE ECONOMY

FRENCH business confidence
remained strong into February, the
Bank of France revealed yesterday.
The Bank’s measure of sentiment
for manufacturing held at a high
index rating of 110, while service sec-
tor morale rose by one point.
The scores prompted the Bank to
anticipate GDP growth of 0.8 per cent
for the first quarter of the year.
Meanwhile, the French trade gap
widened to a deficit of €5.89bn (£5bn)
in January, up from €5.06bn in
December.
GERMAN factory orders bounced
back in the new year after a weak
December, official data showed yes-
terday.
Industrial orders were up 2.9 per
cent in January compared to
December, when they dropped by a
downwardly revised 3.6 per cent.
The jump surpassed the expecta-
tions of economists, and suggest
that the Eurozone’s powerhouse
economy is “surging again, confirm-
ing that the December drop was only
a correction but not a trend rever-
sal,” said ING’s Carsten Brzeski.
The rise was largely driven by
higher domestic orders, which
increased 4.5 per cent, while foreign
orders rose 1.6 per cent.
And within foreign orders,
demand from other parts of the euro
area was strongest, rising by 2.3 per
cent. Non-Eurozone orders were up
just 1.3 per cent.
“Eurozone demand for German
goods is alive despite fiscal austeri-
ty,” Brzeski said. “German industry is
awakening from its short hiberna-
tion.”
recovery, with exporting companies
set to take advantage of greater
demand abroad than at home, a sur-
vey revealed today.
“Confidence in international trade is
robust as exporters thrive on a global
rebound but confidence in the current
UK economic climate is at a record low
as consumer demand remains slug-
gish,” the report by Travelex said.
However, despite a weak pound and
increasing demand in foreign mar-
kets, the UK is still expected to report a
trade deficit for January, when the
official figures are released today.
budget will negatively affect their busi-
ness.
“My first concern is the hike in
National Insurance,” one manufactur-
er told Travelex.
Nonetheless, trade with emerging
Asian markets is on the rise, the survey
revealed, despite declines in trade
with the US and Europe.
And almost half – 47 per cent – of
small to medium-sized British firms
trading internationally have reported
an increase in their exports, a separate
report by Bibby Financial Services
revealed.

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CITYA.M. 9 MARCH 2011
Retirees face decades of
debt as living costs soar
▲
INSURANCE
BY ALISON LOCK
A FIFTH of UK retirees still have thou-
sands of pounds of mortgage debt
while a third owe money on credit
cards, a report showed yesterday.
Outstanding mortgage debt among
over-55s has also risen by a fifth to
more than £65,000 from £54,500 in
February 2010, according to Aviva’s
latest Real Retirement Report.
NEWS | IN BRIEF
Geithner upbeat on global growth
Europe’s efforts to save the euro were
endorsed by US treasury secretary
Timothy Geithner yesterday, during his
trip to Germany. “The leaders of Europe
have done the essential necessary things
and they've made it clear they will do
what is necessary not just to hold the
euro together but to make sure that these
reform programmes are able to work,” he
said. Geithner was also optimistic about
News 13
ANALYSIS l Population trends
13
% of population
11
9
The survey painted a picture of start the count-down to retirement
retirement-age people too reliant on without debt, but for many people
the state pension and borrowing. this has not been possible due to eco-
Over-75-year-olds now hold an average nomic realities, poor financial deci-
£3,370 in credit card debt, while just sions or family obligations,” said
42 per cent of those retiring have a Aviva director Clive Bolton. 7
private pension provision. Most blamed the rising cost of liv-
“While mortgage borrowing gener- ing for their debt, and almost a third
ally falls as people age, this does not said they would cut back on luxuries 55-64 65-74 75+
appear to be the case with credit to pay it back. But eight per cent were Source: Aviva
cards,” the report said. looking to return to work and six per 5
“In an ideal world people would cent to sell their house to pay it off. 1986 1996 2003 2005 2007 2016 2026
the global recovery. “I think we’re in a
much stronger position than we were
three months, six months, nine months
ago to deal with the mix of challenges we
face ahead,” Geithner said.
Professional services shield capital
London experienced a mild recession,
compared to the rest of the UK, due to its
high number of professionals, the Centre
for Economic Performance said today.
 14 News CITYA.M. 9 MARCH 2011

Betfair eyes £30m saving CITY VIEWS: ARE YOU WORRIED ABOUT COMPANIES
LEAVING THE UK?
CLIVE VAUS | IBM
Interviews by Marion Dakers & Eric Wilkens

via Gibraltar licence shift “I wouldn’t want to see jobs go from the UK,
but on the other hand if companies can do
better business elsewhere then I wouldn’t
sometimes subject to in the UK under ANALYSIS l Betfair want to see anyone stopping them doing so. I
▲

GAMING
BY STEVE DINNEEN
BETFAIR yesterday confirmed it will
move its gambling licence to Gibraltar
in order to save on its tax bill.
The betting firm estimates it will
save £10m in the next year and £20m
the year after, taking advantage of
Gibraltar’s one per cent tax on gross
profit from betting.
Betfair says part of the reason for
the move is the double taxation it is
its current set up. It follows Ladbrokes 1,300 p
would prefer them to stay in the country,
and William Hill in setting up their
gambling licenses offshore. though.”
Chief executive David Yu told City 949.01
A.M. the “lions share” of savings will 8 Mar LUKE CASSAR | UNIVERSITY OF QUEENSLAND
be through tax but the firm will also 1,100
benefit from synergies.
The firm also announced its rev-
enues were up 6.2 per cent on the
“There has been a handful of companies mov-
same period a year earlier, despite
900
ing offshore recently, which is concerning, but
poor weather and a decrease in aver-
13 Dec 5 Jan 25 Jan 14 Feb 4 Mar
most of them are staying here. There are rea-
age poker spending.
sons other than taxation to stay in the UK. It
affects both business and personnel.”

MICHAEL BOGDEN | WILLIS

“It’s a real concern, yes, but London will
always be a financial capital. I think com-
panies thinking of moving for tax reasons
might be put off by the human capital
that exists in the City, which is hugely
important.”

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finding. That’s why, with us, you can get the local lowdown with
our customer reviews, watch videos that let you look before you
book and get straight to the point with our interactive maps.
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Download the Yell Mobile app from your app provider today.
CITYA.M. 9 MARCH 2011
News Corp ups ante on BSkyB
MEDIA
▲
BY STEVE DINNEEN
NEWS Corp chief operating officer
Chase Carey upped the ante yesterday
in negotiations to buy BSkyB, claiming
his company has already offered a “fair
price” of 700p.
The BSkyB board has previously
hinted it will recommend a bid of over
800p a share but the broadcaster has
continued to strengthen its position
since then, hitting its target of 10m
subscribers and increasing its first-half
profits by 40 per cent year-on-year.
Microsoft to
pay $1bn for
Nokia tie-up
TELECOMS
▲
BY STEVE DINNEEN
MICROSOFT will pay Nokia a stagger-
ing $1bn (£620m) upfront to develop
handsets designed to run its Windows
Phone 7 (WP7) operating system, it is
understood.
Nokia will reportedly pay Microsoft
a royalty fee for each WP7 licence it
uses, although the exact figure has not
been announced.
Nokia chief executive Stephen Elop,
a former Microsoft employee, had pre-
viously said Nokia will receive “bil-
lions” in benefits from the tie-up,
largely expected to be through dis-
counted licences.
The two firms hope the deal will
allow them to compete with Google’s
fast-growing Android platform and
Apple’s iOS.
Nokia was the biggest global hand-
set manufacturer last year and its
Symbian operating system was the
most commonly used platform. But it
saw its market share slip 7.5 per cent
and Google’s Android overtook it in
Carey said News Corp is still focused
on getting the proposed transaction
through regulatory clearance and said
his company had already valued BSkyB
fairly.
But BSkyB investors including
Fidelity, which owns three per cent,
and hedge fund boss Frank Brosens,
who owns 1.18 per cent, are hoping to
push the price as high as 950p a
share. BSkyB shares closed yesterday
at 828.50p, up from 763p just a
month earlier.
Talks between the two sides were
broken off while regulatory clearance
the fourth-quarter of last year, with
the Scandinavian giant struggling to
find a foothold in the increasingly
dominant high-end market.
Nokia shares have dropped 26 per
cent since the tie-up was announced
last month. It is thought Microsoft
was desperate to avoid Nokia pen-
ning a deal with Google, with whom
it was also in talks.
Meanwhile, Nokia said it will start
talks with Finnish employees over the
company’s new strategy, which unions
fear could cost more than 5,000 jobs in
the Nordic country.
ANALYSIS l Nokia
8.5
€
7.5
6.10
8 Mar
6.5
5.5
28 Dec 17 Jan 4 Feb 24 Feb
We’ve added over 6,500 more peak seats on
the Great Northern route through longer trains
and extra services. Travel by train for a more
comfortable journey.
Find out more at moreseats.co.uk
NEWS | IN BRIEF
Pace warning hits share price
Pace, the world’s biggest maker of set-
top boxes, said a US customer was delay-
was sought, with culture secretary ing a big order to 2012, reducing its 2011
Jeremy Hunt finally giving the green sales growth and wiping some £100m
light earlier this month. off its stock market value. The setback
overshadowed strong underlying profit
ANALYSIS l British Sky Broadcasting growth and an upbeat longer-term out-
840 p look, sending Pace shares more than 15
828.50 per cent lower as it set an outlook for
8 Mar revenue growth of around the same level
800
as the 17 per cent seen in 2010. Adjusted
core earnings rose 36 per cent in 2010 to
700
£103.6m after it shipped 22.2m devices
for cable, satellite and IPTV customers
such as Comcast, DirecTV and AT&T.
720 Analysts at RBS said the results were
13 Dec 5 Jan 25 Jan 14 Feb 4 Mar higher than they had expected.
THE BEST OF BRITISH FILMS
PINEWOOD Studios will invest millions over the next few years to support small budget
films in the vein of The Full Monty (top right), which has grossed £258m since its release in
1997 on a budget of just £2.1m, or The King’s speech (bottom right), which made £168m
with a £5m budget. Bridget Jones’s Diary (top left) grossed £160m on a £26m budget, while
Wallace and Gromit: The Curse of the Were-Rabbit grossed £120m on a £19m budget.
News 15
Vodafone and BT get boost
Vodafone and BT Group saw their
shares surge yesterday after a broker
upgrade. They also saw exceptionally
high volumes, after getting a boost from
a note on the telecoms sector from
Morgan Stanley in which they were
upgraded. The broker said: “Telecoms is
our preferred defensive sector. It offers
greater potential for a positive growth
surprise as well as offering a substantial
dividend yield boost over other sectors.”
Both firms were upgraded to “over-
weight” with price targets of 225p for
Vodafone and 260p for BT. Vodafone
closed yesterday 1.76 per cent up at
181.85p. BT closed up 3.97 per cent at
191.1p.
Pinewood
to invest in
British film
MEDIA
▲
BY STEVE DINNEEN
PINEWOOD Studios says it will set
aside millions over the next few years
to help finance small British films.
The firm says it will invest heavily
in productions with a budget of
around £2-3m, saying it was keen to
get involved in the next surprise hit
like The King’s Speech.
It will snap up a 20 per cent stake of
small productions, with a total annu-
al investment of around £1.6m.
The scheme is a throwback to its
days as a major UK production finan-
cier. Its studios are now better known
for hosting blockbusters including
Casino Royale and Harry Potter.
It said its revenues for 2010 were
eight per cent higher at £43.4m, with
film revenues of £29.1m making up
the bulk, helped by big-budget hits
such as Pirates of the Caribbean: On
Stranger Tides.
TV revenues were down slightly,
falling from £11.3m to £8.2m.
Pinewood was hurt by ITV and the BBC
deciding to film more productions at
their own in-house studio facilities.
Chairman Michael Grade said: “The
company has produced strong results
as it has tackled head on increased
international competition.”
 16 News
Omega makes
shock loss in
difficult year
▲
INSURANCE
BY ALISON LOCK
THE CHAIRMAN of Omega Insurance
described 2010 as a “baptism of fire”
as the Lloyd’s insurer slumped to a
$42.8m (£26.3m) loss yesterday.
John Coldman, who was parachut-
ed in a year ago after shareholders
ousted his predecessor, said it had
taken a $65m hit from catastrophes
in the year.
But its loss was far bigger than the
$18.9m consensus market expecta-
tion and a significant fall from its
$43.6m 2009 profit. It occurred
despite a 34 per cent increase in gross
premiums written, to $356.1m from
$265.8m in 2009.
“To say that ours was a baptism of
fire would be an understatement,”
Coldman said, adding that he was
forced to issue Omega’s first profit
warning a week after starting work.
“Subsequent events proved equally
challenging. I am naturally very disap-
pointed that we are reporting a loss.”
But he added that 86 per cent of
the loss was incurred from business
written in 2009 or earlier, before the
board change. Chief executive
Richard Pexton also said the previous
management’s underwriting, rein-
surance and data management was
poor and had been overhauled.
Omega’s combined ratio rose dra-
matically to 114.4 per cent from just
81.4 per cent in 2009. It said it would
not pay a second-half dividend “as a
matter of prudence”. Analysts said
the results were worse than expected
and “disappointing”. Omega’s shares
fell 17.87 to close at 82.75p.
ANALYSIS l Omega Insurance Holdings
115 p
82.75
105
8 Mar
95
85
22 Dec 14 Jan 14 Feb 4 Mar
Omega Insurance chairman John Coldman said 2010 was a “baptism of fire”.
TIME LINE | OMEGA BOARD CHANGE
January 2009
Omega raises £130m from investors to fund
growth, largely on strength of founder and
chief underwriting officer John Robinson.
October 2009
Robinson leaves the company.
December 2009
Shareholder Invesco calls a special general
meeting (SGM) to propose chairman Walter
Fiederowicz and director Christopher Clarke
are removed from the board.
12 March 2010
All SGM resolutions are passed and John
Coldman becomes chairman. Directors
Christopher Clarke, Clifford Palmer, Coleman
Ross and Nicholas Warren step down and
five new directors join the board.
19 March 2010
Chief executive Richard Tolliday dismissed
and replaced with Richard Pexton.
31 March 2010
Omega says the earthquake in Chile “will
have a material effect” on full-year profit.
August 2010
Omega makes $34.2m (£21m) half-year loss;
shares slump 11 per cent.
January 2011
Canopius makes unsolicited bid for Omega.
February 2011
Tolliday sues for unpaid remuneration.
March 2011
Omega makes $42.8m full-year loss.
CITYA.M. 9 MARCH 2011
Old Mutual ups
profit and looks
to further gains
INSURANCE
▲
SHARES in insurance giant Old
Mutual rose more than three per cent
yesterday after it delivered a 14 per
cent rise in 2010 pre-tax profit.
The UK and South Africa-focused
insurer said earnings and profit were
up in all divisions due to strong new
business growth and cost controls.
Group IFRS pre-tax profit rose to
£1.48bn from £1.3bn in 2009, above a
£1.45bn analyst consensus forecast.
Group chief executive Julian
Roberts said 2011 should be “a year of
further delivery” as the group contin-
ued to simplify and refocus on its
insurance business.
Earnings per share rose 20 per cent
to 16p from 13.3p in 2009 while funds
under management grew six per cent
to £309.3bn from £275.4bn in 2009.
Sales were up seven per cent.
Old Mutual, which tried to sell its
stake in South African bank Nedbank
last year, did not clarify whether it
was still keen to sell, saying only that
it would “continue to work with
Nedbank to build shareholder value”.
It also confirmed the sale of its US
life business to Harbinger Capital for
$350m (£215m), which Shore Capital
analyst Eamonn Flanagan said was
just 22 per cent of its $1.6bn IFRS net
asset value. Its shares closed up 3.3
per cent at 137.7p.
CITYA.M. 9 MARCH 2011
ANALYSIS | How the fast food giants stack up
Revenue*
$15.2bn
Outlets:
33,749
Revenue*
$24.075bn
Outlets:
32,737
Inchcape in
profit rise as
its sales rally
▲
CONSUMER
BY JOHN DUNNE
GLOBAL car dealership Inchcape saw
its profit jump by 38 per cent last year
as emerging markets performed
strongly.
Profit before tax and one-off items
was £214m, also helped by cost sav-
ings across the business.
However, Inchcape warned that it
expected pressure on gross profit
margins this year due to the apprecia-
tion of the yen and to rising input
costs for manufacturers, but predict-
ed a “solid performance” overall.
“In 2011, we continue to expect to
see an uneven global recovery with
market growth in Hong Kong,
Australia, Russia, Finland, the Baltics,
Africa and South America,” said the
British-based group, which sells and
distributes cars for manufacturers
like BMW, Toyota and Mercedes-Benz
in 26 markets.
“However, we anticipate market
declines in Singapore, Greece,
Belgium and the UK, which together
represent circa 50 per cent of group
sales,” it added.
Its fleet business lifted trading
profits by 66.7 per cent to £6.5m, ben-
John Menzies sees net debt fall
as aviation arm gives firm a lift
▲
MEDIA
DISTRIBUTION company John
Menzies yesterday reported a 28 per
cent rise in profit to £45m thanks to a
strong performance in its aviation
division.
Turnover across the group was up
six per cent to £1.96bn.
Profits in aviation – which handled
700,000 flight turns, 71m passengers
and 1.7m tonnes of cargo in 2010 –
were up 56 per cent due to a rise in
overseas cargo volumes and growth
in the ground handling business.
The volcanic ash activity in April
last year cost the firm around £2.2m
News 17
Revenue* Outlets:
Subway now bigger
$2.5bn 12,200
Revenue* Outlets:
than McDonald’s
kets with its successful franchised
▲
CONSUMER
$2.5bn 6,550 BY JOHN DUNNE business model, which emphasises
small, low-cost outlets.
SANDWICH group Subway has over-
taken McDonald’s as the world’s
The privately-owned company said
it had been “on a great run”.
Revenue Outlets: largest restaurant chain, the compa- Meanwhile McDonald’s yesterday
ny has said. said that global like-for-like sales at
$10.8bn** 37,000* Subway had 33,749 sites across the
globe at the end of last year, com-
restaurants in February rose 3.9 per
cent, as strong sales in Europe helped
** Group total including its KFC, Taco Bell and
Pizza Hut restaurants
pared with 32,737 for McDonald’s.In
recent years, Subway has made a
major push into international mar-
offset a weak US market. It said it
wanted to be “better” rather than
just “bigger” in relation to rivals.
* Global revenue 2010 Source: Company figures.
efiting from end of contract exten-
sion deals.
The company’s aftersales business
in the UK performed ahead of last
year due to Inchcape Advantage – a
group-wide improvement pro-
gramme for customer service.
Inchcape, which has been listed on
the London Stock Exchange since
1958, is headquartered in London and
employs around 14,300 people.
The company’s shares rose by 1.8
per cent to close at 398.42p after the
announcement.
Inchcape also said it was recom-
mending that dividend payments be
resumed.
Analysts at Investec raised their
pretax profit forecast for 2011 for
Inchcape from £215m to £223m.
ANALYSIS l Inchcape 398.42
420 p 8 Mar
400
380
360
340
22 Dec 14 Jan 3 Feb 23 Feb
in lost profits but this was offset by
de-icing fees in January and
December.
The distribution arm – which han-
dles around 5.2m newspapers and 2.6
magazines every day – saw operating
profits up 3.2 per cent to £28.8m.
Net debt dropped by more than
£33m to £99m. Weekly magazine
sales dived 6.5 per cent, while month-
lies held up better than expected,
falling by three per cent.
Chairman Iain Napier said: “Whilst
market conditions for the distribu-
tion division are challenging, the (avi-
ation) division is an excellent cash
generator.”
 18 News CITYA.M. 9 MARCH 2011

CITY MOVES | WHO’S SWITCHING JOBS Edited by Harriet Dennys in association with

Cordea Savills
The international property fund manager has
appointed Alexandra McGhee as head of fund
finance, UK, with overall responsibility for the
financial control and reporting on funds admin-
istered from London, Stockholm and
Luxembourg. McGhee’s previous experience in
European fund management includes the posi-
tions of business development director at
Protego Real Estates and finance manager at
Henderson Global Investors.
Jeffery Green Russell
Gareth Jones has been made a Partner
in JGR’s commercial litigation team.
Jones joined JGR in 2008 and specialis-
es in insolvency, debt recovery, compa-
ny law, construction, negligence and IT.
Nomura
Nomura Holdings has announced fur-
ther appointments to its global leader-
ship team. Tarun Jotwani has been
promoted to executive vice president
and head of global markets, and Benoit
Savoret has joined as joint head of glob-
al equities, reporting to Jotwani. John
Phizackerley, currently joint chief
administrative officer (CAO) of the
wholesale division, will succeed Jotwani
as chief executive for EMEA, while Paul
Spanswick will continue to lead the
growth of the corporate platform as
the sole CAO of Wholesale.
RSM Tenon
The accounting firm has boosted its risk
management service by appointing Jed
Turnbull as associate director in the
advisory services team. In addition,
Matthew Ennion, formerly of Berry
Asset Management, has joined the
investment team of RSM Tenon
Financial Management.
Irwin Mitchell
The law firm has expanded its business
advisory team with the appointment of
Tom Flanagan as the firm’s head of
employment. Flanagan joins from
Pinsent Masons, where he is partner.

To appear in CITYMOVES please email your career

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

New demand for equipment hire

helps to narrow Ashtead losses
Weir profit soars on
international growth
▲

ENGINEERING tools, posted a pre-tax loss of £1.7m for

INDUSTRIAL equipment hire company
Ashtead narrowed its third-quarter loss-
es yesterday as wary contractors chose to
rent rather than to buy equipment.
the three months to the end of January,
compared to a £12m loss in the same
period in 2010.
“It is now likely that the full-year out-
come will exceed our earlier expecta- ENGINEERING 2010”. tomers in the power generation
▲

The FTSE 250 company, which hires
out equipment from diggers to small
tions,” said chief executive Geoff BY HARRY BANKS
Drabble.
ENGINEERING group Weir said yes-
terday it was confident on growth
as it expects mining and oil and gas
customers to continue to spend on
valves and pumps, putting it ahead
of schedule with a plan to double
2009 profits by 2014.
Weir said growing demand for
commodities in China was fuelling
large mining projects and the
expansion into new geographies of
oil and gas shale drilling made it
upbeat about prospects for 2011
after what chief executive Keith
Cochrane called an “exceptional
Weir said full-year pre-tax profit
jumped 58 per cent to £295m, beat-
ing a consensus forecast of £289m,
according to a poll of 15 analysts.
“We’re now starting to see the
emergence of international interest
in unconventional drilling tech-
niques in the shale markets in
Australia and China,” Cochrane
said.
“As we move into 2011, the theme
will increasingly turn to original
equipment ... that in turn will pro-
vide an increased installed base
which will then drive greater after-
market sales.”
Weir, which also supplies cus-
market, said its order book grew to
£1.9bn at the end of 2010, up 39 per
cent, after customers increased cap-
ital expenditure.
Shares in Weir, which have rock-
eted 108 per cent in the last 12
months the FTSE by over 100 per
cent in the same period, closed
down 4.6 per cent at £16.97.
“Weir is an increasingly high
quality asset, offering sector-leading
growth, market-leading positions,
and a robust business model.
Despite the stock’s very strong run
through 2010, we believe there is
more to come,” said Investec analyst
Andrew Wilson.

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CITYA.M. 9 MARCH 2011
BEST OF THE BROKERS
ANALYSIS l Intertek
2000
p 8 Mar
1900
1800
13 Dec 5 Jan 25 Jan
INTERTEK
JP Morgan Cazenove rates the product tester “overweight” with a target
price of £21.30, up from a previous target of £20.50. The broker has also
upgraded its 2011 earnings estimates by six per cent, arguing that the
firm has one of the best opportunities in the testing sector. JP Morgan
believes that the firm’s acquisition of Moody represents an earnings accre-
tive deal and a strategic step forward with chances for cross-selling.
FTSE nudges higher as
late rally boosts stocks
THELONDON
REPORT
A
late afternoon rally nudged
Britain’s top share index into
positive territory yesterday, as
investors eyed geopolitical tur-
moil in the Arab world and favoured
defensive stocks.
The FTSE 100 closed 0.98 points
firmer at 5,974.76, having flirted with
the key psychological 6,000 level earli-
er in the session after Kuwait’s oil
minister said OPEC was considering
boosting production.
While this helped pare crude
prices, traders said investors were
focused on longer-term implications
as Libya threatens to dissolve into
civil war, and as tensions persist else-
where in the region.
After yesterday’s short rally, ana-
lysts warned that a break above
February’s highs was crucial for the
index to maintain its upward
momentum.
“I think we could well have seen
the highs at 6,100. If the FTSE doesn’t
break above those highs in the next
month or so, I think we could see a
correction lower down to round
Oil price drop and BofA
forecast lift Wall Street
THENEW YORK
REPORT
A
N upbeat profit forecast from
Bank of America and a pull-
back in oil prices lifted Wall
Street out of the technical dan-
ger zone yesterday in another sign of
the market’s near-term resilience.
The S&P 500 jumped back above a
six-month trend line after closing just
below it on Monday. Holding this
level is a sign of strength, but traders
will grow wary the more it is tested.
Similarly, the Nasdaq composite
index rallied from its 50-day moving
average in another indication of an
News 19
To appear in Best of the Brokers email your research to notes@cityam.com
1,955.00 ANALYSIS l Petrofac 1,454.00 ANALYSIS l Schroders
1650
p 8 Mar 1950
p
1,797.00
1550 8 Mar
1850
1450
1750
14 Feb 4 Mar 13 Dec 5 Jan 25 Jan 14 Feb 4 Mar 13 Dec 5 Jan 25 Jan 14 Feb 4 Mar
PETROFAC SCHRODERS
Deutsche Bank rates the energy services firm “hold” with a target price of Evolution Securities rates the asset manager “neutral” with a target price
£14.70. The broker still harbours worries about the firm’s engineering and of £18.60. The broker expects the firm to report profits close to their
construction business following results on Monday, with continued politi- 2007 peak tomorrow, with forecast net inflows of £28.1bn for the full-
cal unrest in Petrofac’s markets in the Middle East. Deutsche Bank also year. It also expects funds under management to have grown 27 per cent
thinks that intense competition from Asian contractors will substantially during the year to £188.5bn. Evo views Schroders as the best convention-
slow the firm’s contract pipeline. al asset manager, but sees limited scope for upgrades to forecasts.
about 5,600,” Michael Hewson, mar-
ket analyst at CMC Markets, said.
“Among the favoured equity plays
was a move from more cyclical stocks
into defensives, said Manoj Ladwa,
senior trader at ETX Capital.
WANT
A FREE
“I know Morgan Stanley came out
with a note earlier on recommending
that clients move that way as well, so
that’s certainly a theme that we’re
seeing today.”
Defensive telecommunication
firms Vodafone and BT Group were
among the top blue chip performers,
up 1.8 per cent and 4 per cent respec-
tively in high volumes. Traders cited
Morgan Stanley upgrades on the pair.
AD?
WE’LL
Randgold Resources was the
sharpest blue-chip faller, dropping 8.2
per cent, with traders saying trouble
in Ivory Coast, where it has opera-
tions, was hurting it. DO IT
ANALYSIS l FTSE
6,100 p
5,974.76
8 Mar FOR
NOTHING
6,050
6,000
6,950
5,900
5,850 On March 18th, help RedRoute create
5,800
more ads for more clients in one day
13 Dec 5 Jan 25 Jan 14 Feb 4 Mar than any other agency in history – and
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uptrend, although trading volume www.redrouteagency.com
was lacklustre.
Bank of America shot up 4.7 per
cent to $14.69 after it forecast pre-tax
or see us at the top of
Carnaby Street on March 18th
profit of about $40bn annually longer
term, higher than some investors had
expected.
Financial shares led gainers, with
the S&P financial index up 2.2 per
cent.
Oil prices pulled back, with Brent
crude down nearly 2 per cent at
$113.06 a barrel after Kuwait’s oil
minister said OPEC was in discussions
to increase production.
The Dow Jones industrial average
gained 124.58 points, or 1.03 per cent,
to 12,214.61. The Standard & Poor’s Supported by
500 Index added 11.69 points, or 0.89
per cent, to 1,321.82. The Nasdaq
Composite Index rose 20.14 points, or
0.73 per cent, to 2,765.77.
 Wealth Management Foreign Exchange
20
EURO RETREATS
ON SOVEREIGN
DEBT WORRIES
BORIS SCHLOSSBERG
DIRECTOR OF CURRENCY RESEARCH, GFT
J
UST as euro-dollar broke through the key
$1.4000 level on anticipation of an upcoming
European central bank (ECB) rate hike, Moody’s
downgraded Greece, bringing the rally to a sud-
den halt as sovereign debt fears returned to the cur-
rency market. On Monday, Moody’s reduced Greece’s
sovereign debt rating by three notches to B1 from
Ba1 classifying it as “highly speculative”.
Moody’s noted that: “The fiscal consolidation
measures and structural reforms that are needed to
stabilise the country’s debt metrics remain very
ambitious and are subject to significant implementa-
tion risks.” It added that conditions attached to con-
tinuing financial aid after 2013 will reflect solvency
criteria that the country may not satisfy, and result
in a restructuring of existing debt.
The Greek government quickly countered stating:
“At a time when the global economy is fragile and
market sentiment is sensitive, unbalanced and unjus-
tified rating decisions such as Moody’s today can ini-
tiate damaging self-fulfilling prophecies and
certainly strengthen the arguments for tighter regu-
lation of the rating agencies themselves.” However,
the damage had been done and euro-dollar retreat-
ed off its highs as currency traders contemplated
the possible ramifications of the downgrade.
For euro bulls, the downgrade of Greece could not
have come at a worse time. Just last week, ECB
President Jean-Claude Trichet practically promised
the market a rate hike at ECB’s next meeting in
April, creating the foundation for the current rally.
With America’s Federal Reserve still on the sidelines
despite improving US economic fundamentals, the
euro has been rallying against the dollar on interest
rate differentials as the spread between US and
German two-year bonds continued to widen out in
favor of Europe.
However, Portugal has €4.342bn in bond redemp-
tions coming in April and Greece has €8.22bn due
on 20 April. If the credit markets move against both
countries ahead of the event, the ECB may be forced
to delay its tightening policy – which could trigger a
much more significant correction in euro-dollar.
WAITING BY THE PHONE.
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CANCELLING DATES.
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CITYA.M. 9 MARCH 2011
Shaky times for Kiwi
ahead of rates decision
Predictions are in
abundance ahead of
New Zealand’s
crunch rates decision,
writes Philip Salter
O
N 22 February an earthquake with a
magnitude of 6.3 hit the South
Island of New Zealand, devastating
persons and property in the city of
Christchurch. In consequence, the Kiwi slid
against the US dollar. Prior to the quake the
reserve bank of New Zealand (RBNZ) was
largely expected to sail a steady course,
holding rates at 3 per cent for the medium
term. Post-shock a cut is on the cards and
Thursday’s meeting of the RBNZ has
become the main event for forex traders.
There are as many opinions as there are
people commenting on whether, and by
how much, the RBNZ will cut. Expectations
range from no change to a cut of 50 basis
points. Angus Campbell of London Capital
Group suggests that “considering that
inflation globally is on the rise, it’s unlikely
that we’ll see a move from their central
bank to cut rates at the next meeting,” but Heads you win Picture: GETTY
he adds that “the decision is expected to be
on a knife edge.” rebound against the US dollar from levels minimal and manageable for a country of
Michael Hewson of CMC Markets howev- last seen in October last year.” New Zealand’s wealth and economic posi-
er suggests that “25 basis points are priced With an eye to the future Hewson sug- tion” says Tchetvertakov. Uncertain times
in, so “we could well see a bounce in the gests that “any downgrading of the fiscal indeed, but potentially profitable if you can
Kiwi.” Although “the RBNZ is expected to outlook could also impact risk appetite and pick where the Kiwi is heading.
cut by 25 basis points” says Rishi Patel of increasing oil prices will be a factor in that
FairFX “we cannot rule out a 50 basis point assessment.” For Campbell, the recent spike ANALYSIS l The Kiwi’s slide against the dollar
cut.” George Tchetvertakov at Alpari UK in oil prices is encouraging “investors to 0.775 NZD-USD
thinks we will probably see “a 25 basis exit riskier currencies such as the New
0.770
point cut, although a significant amount of Zealand dollar, back into safer havens like
market participants are expecting a 50 the swissie or greenback.” 0.765
basis point cut”. As the economic aftershocks from the 0.760
“The battle of the high yielders” between earthquake subside, traders are getting 0.755
the Australian and New Zealand dollars has back to fundamentals, but uncertainty
0.750
been interesting for Campbell: “since the hangs over these Pacific islands. Patel
Australian dollar-New Zealand dollar broke points to a recent business survey from the 0.745
out above resistance at $1.3200.” Hewson Bank of New Zealand indicating that senti- 0.740
suggests “the New Zealand dollar may well ment has fallen by 43 points to a 2 year low
have been overdone, hence the current of -21 points. Yet “long-term damage will be 14 Feb 21 Feb 28 Feb 7 Mar
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CITYA.M. 9 MARCH 2011 21

Wealth Management | Markets

FTSE 100 FTSE 250 FTSE ALLSHARE DOW NASDAQ S&P 500 / 1.1618 0.0024 /$ 1.3910 0.0059
5974.76 11743.52 3103.13 12214.38 2765.77 1321.82 /$ 1.6164 0.0042 /£ 0.8608 0.0012
0.98 -4.35 0.31 124.35 20.14 11.69 /¥ 133.56 0.1808 /¥ 114.99 0.0295
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 . . . . .227.7 7.3 240.5 109.4 Brewin Dolphin Ho . .183.3 -1.4 186.0 114.0 Rexam . . . . . . . . . . . .370.0 1.5 375.4 284.8 Amlin . . . . . . . . . . . . .403.9 5.3 433.0 366.8 BHP Billiton . . . . . . .2443.0 -27.5 2616.0 1684.5 Great Portland Es . . .398.3 -2.8 402.9 280.5 Marston's . . . . . . . . . . .95.1 -0.4 117.1 89.9
Camellia . . . . . . . . . .9950.0 50.010700.0 6900.0 Smiths Group . . . . .1353.0 6.0 1429.0 1008.0 Beazley . . . . . . . . . . . .128.0 0.6 139.2 105.4 Centamin Egypt Lt . .132.9 1.0 197.1 118.5 Hammerson . . . . . . . .466.0 -10.7 478.8 336.3 Millennium & Copt . .552.0 -6.0 600.5 386.8
Tsy 3.250 11 . . . . .101.86 -0.02 103.9 101.8 CONSTRUCTION & MATERIALS Charles Taylor Co . . .162.0 -0.5 240.0 153.0 Brit Insurance Ho . .1071.0 0.0 1075.0 728.0 Eurasian Natural . . .945.5 -12.0 1266.0 818.0 Land Securities G . . .768.0 -0.5 773.0 545.0 Mitchells & Butle . . . .308.8 0.6 361.0 274.0
Tsy 9.000 11 . . . . .102.91 0.00 110.8 102.9 GENERAL RETAILERS
Balfour Beatty . . . . . .354.0 -3.3 360.5 229.8 City of London Gr . . . .92.0 0.0 95.0 65.0 Catlin Group Ltd. . . .372.0 2.1 399.2 319.9 Fresnillo . . . . . . . . . .1602.0 -31.0 1682.0 763.5 SEGRO . . . . . . . . . . . .325.1 -0.1 338.5 250.2 National Express . . .244.1 2.3 260.3 213.4
Tsy 2.500 11 . . . . .309.03 -0.01 311.1 307.5 Keller Group . . . . . . .620.5 0.5 784.5 515.0 City of London In . . .390.0 10.0 461.5 266.5 Brown (N.) Group . . .273.2 0.4 311.2 213.0 CPP Group . . . . . . . . .306.5 3.0 329.0 225.0 Gem Diamonds Ltd. .274.5 -5.3 306.0 186.3 Shaftesbury . . . . . . . .490.2 1.6 491.7 349.3 PartyGaming . . . . . . .182.3 -2.7 334.5 172.1
Tsy 5.000 12 . . . .104.05 -0.03 107.4 104.0 Kier Group . . . . . . . .1307.0 41.0 1383.0 886.5 Close Brothers Gr . . .872.5 18.0 888.5 664.0 Carpetright . . . . . . . . .770.5 15.5 936.5 636.0 Hiscox Ltd. . . . . . . . . .382.4 -2.2 399.0 327.9 Hochschild Mining . .661.5 -18.5 688.0 234.0 Punch Taverns . . . . . .69.1 1.1 101.0 58.0
Tsy 5.250 12 . . . .105.20 -0.03 108.6 105.2 Collins Stewart . . . . . .87.0 -2.0 94.0 67.3 Debenhams . . . . . . . . .59.9 -0.4 79.0 53.0 Jardine Lloyd Tho . . .681.5 -2.5 688.0 518.0 Kazakhmys . . . . . . .1406.0 -42.0 1671.0 965.0 SOFTWARE & COMPUTER SERV. Rank Group . . . . . . . .129.9 0.4 138.5 94.8
Tsy 9.000 12 . . . . .110.97 0.00 117.5 109.8 ELECTRICITY Evolution Group . . . . .79.0 -0.8 127.0 67.0 Dignity . . . . . . . . . . . .713.0 -2.0 726.5 598.0 Lancashire Holdin . . .602.0 -5.0 647.0 442.0 Kenmare Resources . .42.0 -0.2 42.9 9.3 Autonomy Corporat 1652.0 22.0 1975.0 1271.0 Restaurant Group . . .279.8 -3.1 310.9 208.2
Tsy 4.500 13 . . . . .106.11 -0.05 109.2 105.9 Drax Group . . . . . . . .403.0 -1.7 415.6 326.3 F&C Asset Managem .85.5 0.6 92.9 47.5 Dixons Retail . . . . . . .17.7 -0.1 36.5 17.4 RSA Insurance Gro . .137.2 0.4 143.5 114.8 Lonmin . . . . . . . . . . .1827.0 -24.0 2113.0 1355.0 Aveva Group . . . . . .1670.0 -11.0 1739.0 1044.0 Sportingbet . . . . . . . . .47.1 -0.3 79.9 45.0
Tsy 2.500 13 . . . .281.60 -0.07 281.9 266.9 Scottish & Southe . .1220.0 5.0 1258.0 1010.0 Gartmore Group Lt . .110.2 0.9 210.0 88.5 Dunelm Group . . . . . .407.0 0.0 550.0 325.3 Petropavlovsk . . . . .1062.0 -20.0 1365.0 903.5 Computacenter . . . . .441.8 12.0 457.5 260.0 Stagecoach Group . .214.5 2.8 224.0 160.7
Tsy 8.000 13 . . . . .116.42 -0.05 121.3 116.3 LIFE INSURANCE
Hargreaves Lansdo .614.0 16.0 614.0 317.4 Halfords Group . . . . .380.0 -9.6 550.0 377.3 Randgold Resource 4480.0-400.0 6655.0 4424.0 Fidessa Group . . . . .1635.0 -9.0 1722.0 1269.0 Thomas Cook Group 187.0 -1.0 272.0 171.7
Tsy 5.000 14 . . . .109.76 -0.08 114.1 109.2 ELECTRONIC & ELECTRICAL EQ. Helphire Group . . . . . .17.1 -0.3 60.3 11.8 Home Retail Group . .208.4 -2.2 295.1 188.5 Aviva . . . . . . . . . . . . . .475.1 5.2 479.0 294.2 Rio Tinto . . . . . . . . .4145.5 -64.5 4712.0 2812.0 Invensys . . . . . . . . . . .349.7 -5.1 364.3 230.2 TUI Travel . . . . . . . . . .239.4 0.5 308.4 190.0
Tsy 7.750 15 . . . .105.91 0.00 112.0 76.0 Domino Printing S . .703.0 -2.0 724.5 337.9 Henderson Group . . .165.7 -0.8 168.9 118.1 Inchcape . . . . . . . . . .393.6 2.1 414.0 237.1 Legal & General G . . .121.2 -0.4 122.7 72.3 Vedanta Resources 2326.0 -39.0 2934.0 1839.0 Logica . . . . . . . . . . . .132.7 -2.3 147.9 101.7 Whitbread . . . . . . . .1694.0 32.0 1887.0 1266.0
Tsy 8.000 15 . . . .124.52 -0.14 131.6 123.7 Halma . . . . . . . . . . . . .345.0 -0.2 366.6 239.5 Highway Capital . . . . . .7.0 0.0 8.5 6.0 JD Sports Fashion . .908.5 18.5 933.5 560.5 Old Mutual . . . . . . . . .137.7 4.4 145.2 102.0 Xstrata . . . . . . . . . . .1393.0 -22.0 1535.0 845.8 Micro Focus Inter . . .314.7 -0.5 546.5 276.0 William Hill . . . . . . . . .188.7 1.6 216.5 155.5
Tsy 4.750 15 . . . .109.56 -0.10 114.7 108.6 Laird . . . . . . . . . . . . . .156.4 -6.2 179.0 98.8 ICAP . . . . . . . . . . . . . .527.5 0.5 570.5 341.6 Kesa Electricals . . . .130.6 1.1 174.0 99.2 Phoenix Group Hol . .660.0 3.5 758.0 584.5 Misys . . . . . . . . . . . . .329.9 1.8 354.8 217.0
Tsy 2.500 16 . . . .317.07 -0.14 318.5 296.9 MOBILE TELECOMS AIM 50
Morgan Crucible C . .307.5 -1.4 316.0 167.5 IG Group Holdings . .466.4 1.4 553.0 362.4 Kingfisher . . . . . . . . .241.1 -4.2 271.3 198.5 Prudential . . . . . . . . .714.0 13.5 742.0 489.2 Sage Group . . . . . . . .274.0 -1.3 302.0 222.7
Tsy 4.000 16 . . . .106.07 -0.16 111.4 103.6 Renishaw . . . . . . . . .1778.0 94.0 1791.0 607.0 Intermediate Capi . . .319.6 5.6 360.3 240.4 Marks & Spencer G . .338.5 2.6 427.5 326.4 Resolution Ltd. . . . . .288.2 -2.1 328.6 211.3 Inmarsat . . . . . . . . . . .607.0 14.0 821.0 593.0 SDL . . . . . . . . . . . . . . .670.0 20.0 678.5 421.0 Abcam . . . . . . . . . . . .402.0 29.0 402.0 216.0
Tsy 12.000 17 . . .128.03 -0.67 185.9 126.8 Spectris . . . . . . . . . .1432.0 -2.0 1440.0 740.5 International Per . . . .323.2 6.7 386.6 183.3 Mothercare . . . . . . . .481.1 3.0 643.0 475.4 St James's Place . . . .320.4 3.1 320.9 204.2 Vodafone Group . . . .181.9 3.2 185.0 129.5 Telecity Group . . . . . .491.7 1.7 532.5 365.0 Albemarle & Bond . .300.0 -10.0 334.0 218.0
Tsy 1.250 17 . . . .108.40 -0.21 111.1 104.0 International Pub . . . .112.7 -0.5 118.3 110.7 Next . . . . . . . . . . . . .1934.0 -7.0 2344.0 1909.0 Standard Life . . . . . . .240.0 1.6 243.3 173.0 Amerisur Resource . .24.3 -1.0 27.0 11.5
Tsy 8.750 17 . . . .134.02 -0.19 142.2 132.9 EQUITY INVESTMENT INSTRUM. NONEQUITY INVESTM. COMM. SUPPORT SERVICES
Investec . . . . . . . . . . .474.8 0.3 562.0 429.2 Sports Direct Int . . . .180.2 -5.3 187.5 92.3 MEDIA Archipelago Resou . . .63.6 0.1 64.8 32.3
Tsy 5.000 18 . . . . .110.98 -0.22 117.6 108.2 Aberforth Smaller . . .672.5 2.0 697.0 495.0 IP Group . . . . . . . . . . . .48.0 1.8 52.5 28.0 WH Smith . . . . . . . . . .458.5 -7.5 523.0 398.2 Genesis Emerging . .506.0 3.0 568.0 427.0 Aggreko . . . . . . . . . .1515.0 10.0 1685.0 1045.0 ASOS . . . . . . . . . . . .1924.0 103.0 1924.0 456.3
Tsy 4.500 19 . . . .106.84 -0.25 113.8 103.5 Alliance Trust . . . . . .359.1 3.7 377.9 293.5 Jupiter Fund Mana . .327.0 1.6 337.3 180.3 4imprint Group . . . . .265.0 0.0 275.0 140.5 Ashtead Group . . . . .203.2 16.7 203.2 77.0 Aurelian Oil & Ga . . . .89.5 -2.5 93.0 35.8
Tsy 3.750 19 . . . .100.95 -0.27 107.7 97.0 HEALTH CARE EQUIPMENT & S. OIL & GAS PRODUCERS
Bankers Inv Trust . . .418.5 0.0 427.7 337.0 LMS Capital . . . . . . . . .56.4 -0.6 59.0 40.0 Aegis Group . . . . . . .139.4 -0.6 148.3 103.6 Atkins (WS) . . . . . . . .705.0 -5.0 792.5 578.0 Avanti Communicat .515.0 -8.0 735.0 375.0
Tsy 4.750 20 . . . .108.16 -0.29 115.9 104.7 BH Global Ltd. GB .1091.0 -2.0 1174.0 1071.0 London Finance & . . .19.5 0.0 21.5 16.5 Smith & Nephew . . . .710.5 0.0 742.0 537.5 Bloomsbury Publis . .125.6 -0.6 127.0 105.3 Afren . . . . . . . . . . . . . .158.7 -3.7 164.3 79.2 Babcock Internati . . .581.5 0.0 635.0 492.8 Avocet Mining . . . . . .236.5 -7.5 253.5 95.5
Tsy 2.500 20 . . . .320.35 -0.24 325.7 296.2 BH Global Ltd. US . . . .10.7 -0.1 11.6 10.7 London Stock Exch .880.5 0.0 933.0 544.0 Synergy Health . . . . .883.0 -4.0 948.0 562.5 British Sky Broad . . .828.5 -5.0 834.0 536.5 BG Group . . . . . . . . .1456.0 -24.0 1524.0 984.0 Berendsen . . . . . . . . .482.8 -7.5 494.5 360.2 Blinkx . . . . . . . . . . . . . .95.5 4.0 102.0 12.3
Tsy 8.000 21 . . . .135.66 -0.29 147.1 133.6 BH Macro Ltd. EUR . . .16.4 -0.2 17.2 15.8 Man Group . . . . . . . . .284.4 3.9 311.0 201.9 Centaur Media . . . . . . .63.3 -2.0 73.0 45.8 BP . . . . . . . . . . . . . . . .493.8 -3.7 655.4 302.9 Bunzl . . . . . . . . . . . . .724.0 -7.0 783.0 658.0 Borders & Souther . . .60.5 -1.0 93.0 45.8
Tsy 1.875 22 . . . . .113.50 -0.32 117.8 108.5 HHOLD GDS & HOME CONSTR.
BH Macro Ltd. GBP 1694.0 8.0 1785.0 1630.0 Paragon Group Of . .183.2 4.2 191.5 114.4 Chime Communicati .278.5 10.8 281.8 158.0 Cairn Energy . . . . . . .448.0 6.8 493.2 365.7 Capita Group . . . . . . .785.0 3.0 826.0 635.5 BowLeven . . . . . . . . .352.8 0.0 398.0 103.0
Tsy 4.000 22 . . . .100.61 -0.40 108.4 96.2 BH Macro Ltd. USD . . .16.6 0.1 17.1 15.8 Provident Financi . . .975.0 -1.0 1033.0 728.5 Barratt Developme . .102.9 0.8 137.7 70.1 Creston . . . . . . . . . . . .95.0 -0.5 105.0 78.5 EnQuest . . . . . . . . . . .146.5 -2.5 150.6 89.3 Carillion . . . . . . . . . . .374.0 5.9 399.3 291.2 Caledon Resources .102.3 0.3 107.0 23.3
Tsy 2.500 24 . . . .281.16 -0.38 286.9 258.6 BlackRock World M .779.0 -5.5 815.0 533.0 Rathbone Brothers .1187.0 -7.0 1257.0 762.5 Bellway . . . . . . . . . . . .665.0 -4.5 809.0 511.0 Daily Mail and Ge . . .520.0 -14.5 594.5 433.0 Essar Energy . . . . . .506.5 -8.5 589.5 383.0 De La Rue . . . . . . . . .747.5 -4.5 984.0 549.5 Cape . . . . . . . . . . . . . .498.0 10.5 499.8 190.5
Tsy 5.000 25 . . . .109.28 -0.49 118.5 104.5 BlueCrest AllBlue . . .171.7 0.6 174.5 159.0 Real Estate Credi . . . . .1.2 0.0 2.5 0.9 Exillon Energy . . . . . .453.5 13.5 454.6 166.0 Electrocomponents .276.3 -2.8 280.5 197.3 CareTech Holding . . .209.4 7.4 422.0 200.8
Tsy 1.250 27 . . . .107.01 -0.20 111.2 100.5 British Assets Tr . . . .136.2 0.2 140.5 105.0 RSM Tenon Group . . .44.5 -1.0 66.3 38.0 Heritage Oil . . . . . . . .282.0 7.5 581.0 261.7 Experian . . . . . . . . . . .772.5 -7.5 819.0 572.0 Conygar Investmen .117.0 0.0 124.3 101.3
Tsy 4.250 27 . . . . .99.65
Tsy 6.000 28 . . . .121.41
-0.45
-0.43
108.8
132.7
95.6
117.7
British Empire Se . . .492.5 2.0 512.0 404.1
Caledonia Investm .1768.0 -3.0 1928.0 1532.0
S & U . . . . . . . . . . . . .632.5
Schroders . . . . . . . .1797.0
0.0 638.5 482.5
3.0 1922.0 1154.0
MAIN CHANGES UK 350 JKX Oil & Gas . . . . . .321.9 2.3
Premier Oil . . . . . . . .2076.0 -3.0
329.3 223.2
2140.0 1085.0
Filtrona PLC . . . . . . . .312.0 -6.0
G4S . . . . . . . . . . . . . . .267.0 -1.7
319.3 193.4
283.5 237.7
Cove Energy . . . . . . . .90.0 -2.0
Daisy Group . . . . . . . .97.0 -0.5
112.8
108.5
41.0
84.5
Tsy 4.750 30 . . . .104.93 -0.46 115.0 101.1 City of London In . . .289.0 1.1 296.0 233.7 Schroders (Non-Vo .1420.0 -6.0 1508.0 950.5 Royal Dutch Shell . .2197.5 -21.5 2267.5 1624.0 Hays . . . . . . . . . . . . . .128.0 -1.4 133.6 88.4 Desire Petroleum . . . .39.3 -0.8 168.5 32.3
Tsy 4.125 30 . . . .268.20 -0.20 274.4 246.3 Dexion Absolute L . .150.4 -0.1 151.0 131.2 Tullett Prebon . . . . . .421.0 -5.0 426.0 298.0
Risers % Fallers %
Royal Dutch Shell . .2168.5 -19.0 2251.0 1554.0 Homeserve . . . . . . . .472.5 -0.1 487.5 329.0 EMIS Group . . . . . . . .465.0 0.0 485.0 303.5
Tsy 4.250 32 . . . . .98.10 -0.49 107.8 94.5 Edinburgh Dragon . .236.2 2.8 262.1 197.6 Walker Crips Grou . . .47.5 0.0 50.5 45.0 Ashtead Group . . . . .203.2 9.0 Pace . . . . . . . . . . . . . .176.4 -20.0 Salamander Energy .312.0 -1.6 317.3 204.9 Howden Joinery Gr . .112.0 2.5 127.5 56.8 Encore Oil . . . . . . . . .122.8 -0.3 151.5 15.0
Tsy 4.250 36 . . . . .97.39 -0.51 107.4 93.6 Edinburgh Inv Tru . . .437.0 -0.5 467.2 366.0 Betfair Group . . . . . . .955.0 7.6 Randgold Resources4480.0 -8.2 Soco Internationa . . .362.5 10.0 484.2 292.0 Intertek Group . . . . .1955.0 -39.0 2000.0 1324.0 Faroe Petroleum . . . .179.3 -5.8 218.3 106.0
Tsy 4.750 38 . . . .105.60 -0.51 116.5 101.5 Electra Private E . . .1650.0 15.0 1719.0 1177.0 FIXED LINE TELECOMS Tullow Oil . . . . . . . . .1460.0 -33.0 1504.0 991.5 Michael Page Inte . . .512.0 -12.5 565.5 346.4 Gulfsands Petrole . . .335.0 -1.0 401.5 244.3
Tsy 4.500 42 . . . .101.88 0.00 112.8 97.8 Renishaw . . . . . . . . .1778.0 5.6 Supergroup . . . . . . .1397.0 -6.2
F&C Inv Trust . . . . . .313.6 -0.2 316.8 251.4 BT Group . . . . . . . . . .191.1 7.3 191.4 109.9 BTG . . . . . . . . . . . . . .220.8 4.2 Weir Group . . . . . . .1695.0 -4.7 Mitie Group . . . . . . . .206.5 1.8 241.1 188.7 GW Pharmaceutical .103.9 -3.1 141.0 83.0
Fidelity China Sp . . . .112.1 2.6 128.7 92.3 Cable & Wireless . . . .51.1 1.4 63.7 44.4 OIL EQUIPMENT & SERVICES Premier Farnell . . . . .305.2 -3.6 313.0 194.4 Hamworthy . . . . . . . .480.0 -10.0 502.0 256.8
BT Group . . . . . . . . . .191.1 4.0 AZ Electronic Mate . .292.3 -4.2
Fidelity European . .1162.0 2.0 1170.0 916.0 Cable & Wireless . . . .71.5 0.7 100.0 60.5 Amec . . . . . . . . . . . .1183.0 -21.0 1251.0 760.5 Regus . . . . . . . . . . . . .107.4 -0.2 120.0 66.1 Hargreaves Servic . .965.0 -17.0 983.0 556.5
AEROSPACE & DEFENCE Fidelity Special . . . . .580.5 -1.0 595.0 503.0 COLT Group SA . . . .151.5 3.4 156.2 109.0 Yule Catto & Co . . . . .227.7 3.3 Laird . . . . . . . . . . . . . .156.4 -3.8 Hunting . . . . . . . . . . .804.0 5.5 806.0 439.4 Rentokil Initial . . . . . . .88.2 0.4 138.5 87.4 Healthcare Locums . .112.5 0.0 0.0 0.0
BAE Systems . . . . . .327.7 2.6 388.8 294.7 Herald Inv Trust . . . . .529.5 0.5 541.0 349.8 TalkTalk Telecom . . .134.5 -5.3 168.3 108.5 Old Mutual . . . . . . . . .137.7 3.3 TalkTalk Telecom G . .134.5 -3.8 John Wood Group . .666.5 4.5 670.0 293.1 RPS Group . . . . . . . . .199.7 -4.3 242.0 169.8 Immunodiagnostic . .807.5 -32.0 975.0 575.0
Chemring Group . . .3354.0 29.0 3663.0 2598.0 HSBC Infrastructu . . .116.7 -0.5 121.2 112.0 Kier Group . . . . . . . .1307.0 3.2 African Barrick Go . .547.5 -3.6 Lamprell . . . . . . . . . . .315.9 3.7 390.0 195.3 Serco Group . . . . . . .591.0 -8.5 651.0 529.5 James Halstead . . . . .422.5 0.0 450.0 283.3
FOOD & DRUG RETAILERS
Cobham . . . . . . . . . . .235.3 5.6 275.9 192.3 Impax Environment .121.0 1.8 130.5 106.5 SDL . . . . . . . . . . . . . . .670.0 3.1 Aquarius Platinum . .381.1 -3.5 Petrofac Ltd. . . . . . .1454.0 -21.0 1685.0 1002.0 Shanks Group . . . . . .114.5 -0.9 126.7 92.0 Kalahari Minerals . . .301.0 16.0 308.3 142.0
Meggitt . . . . . . . . . . . .352.4 -1.9 380.9 261.7 JPMorgan American .891.0 6.0 909.0 673.0 Booker Group . . . . . . .58.0 -0.5 60.6 38.6 Exillon Energy . . . . . .453.5 3.1 Enterprise Inns . . . . . .88.1 -3.5 SIG . . . . . . . . . . . . . . .126.8 -1.5 153.2 90.7 London Mining . . . . .382.0 2.0 418.8 194.0
QinetiQ Group . . . . . .124.6 -1.5 142.0 96.7 JPMorgan Asian In . .223.4 4.2 250.8 182.5 Greggs . . . . . . . . . . . .494.0 1.0 501.5 417.8 PERSONAL GOODS SThree . . . . . . . . . . . .429.5 4.5 429.8 231.1 Lonrho . . . . . . . . . . . . .17.0 0.0 19.0 9.4
Rolls-Royce Group . .600.5 0.5 665.0 535.0 JPMorgan Emerging .575.5 4.5 639.0 479.5 Morrison (Wm) Sup .279.8 0.0 306.3 257.6 Price Chg High Low Price Chg High Low Burberry Group . . . .1193.0 -7.0 1220.0 612.5 Travis Perkins . . . . .1000.0 1.0 1127.0 709.0 M. P. Evans Group . .440.0 -2.4 500.5 317.5
Senior . . . . . . . . . . . . .139.0 -4.0 159.5 90.0 JPMorgan European .866.0 2.0 885.0 606.0 Ocado Group . . . . . . .202.0 -5.0 285.0 123.5 PZ Cussons . . . . . . . .347.4 1.9 409.0 260.1 Wolseley . . . . . . . . .2154.0 34.0 2261.0 1223.0 Majestic Wine . . . . . .407.4 2.4 430.0 255.0
Ultra Electronics . . .1679.0 -10.0 1895.0 1483.0 JPMorgan Indian I . . .415.0 5.4 502.0 377.2 Sainsbury (J) . . . . . . .368.6 1.0 395.0 312.9 Berkeley Group Ho .1039.0 13.0 1039.0 751.0 Euromoney Institu . .730.0 4.0 736.0 463.0 Supergroup . . . . . . .1397.0 -92.0 1820.0 535.0 May Gurney Integr . .253.0 -2.0 264.0 177.0
JPMorgan Russian .696.0 -4.0 755.0 502.0 Tesco . . . . . . . . . . . . .399.0 -0.1 454.4 377.5 Bovis Homes Group .447.0 -0.2 460.0 326.6 Future . . . . . . . . . . . . . .26.0 -0.5 30.0 15.8 TECHNOLOGY HARDW. & EQUIP. Monitise . . . . . . . . . . . .23.5 -0.3 27.0 14.3
ALTERNATIVE ENERGY Law Debenture Cor . .355.6 -0.2 362.9 273.3 PHARMACEUTICALS & BIOTECH ARM Holdings . . . . . .589.5 -0.5 651.0 222.5 Mulberry Group . . . .1225.0 10.0 1388.0 180.5
Mcbride . . . . . . . . . . .140.7 -0.3 242.1 114.0 Haynes Publishing . .239.0 5.0 280.0 202.5
Hansen Transmissi . . .41.6 0.3 108.0 39.1 Mercantile Inv Tr . . .1114.0 0.0 1137.0 840.0 FOOD PRODUCERS Huntsworth . . . . . . . . .75.0 -0.8 87.5 65.0 AstraZeneca . . . . . .2971.0 -9.0 3385.0 2772.0 CSR . . . . . . . . . . . . . .374.6 -1.8 495.0 280.9 Nanoco Group . . . . . . .81.3 -0.3 115.8 77.8
Persimmon . . . . . . . .458.1 0.8 507.5 336.5
Merchants Trust . . . .401.3 -5.2 425.0 320.0 Associated Britis . . .977.5 2.5 1182.0 918.0 Reckitt Benckiser . .3115.0 -14.0 3655.0 3037.0 Informa . . . . . . . . . . . .419.9 -7.6 461.1 342.1 BTG . . . . . . . . . . . . . .220.8 8.8 263.0 154.2 Imagination Techn . .471.3 -0.1 476.0 215.1 Nautical Petroleu . . .419.0 -10.0 547.0 45.0
AUTOMOBILES & PARTS Monks Inv Trust . . . .347.0 5.0 363.0 275.5 Cranswick . . . . . . . . .813.0 -14.0 907.5 784.0 Genus . . . . . . . . . . . . .969.5 -13.0 984.4 677.5 Pace . . . . . . . . . . . . . .176.4 -44.1 231.8 148.6 Nichols . . . . . . . . . . . .457.4 -7.6 495.0 332.5
Redrow . . . . . . . . . . . .126.4 -0.7 151.9 97.5 ITE Group . . . . . . . . . .248.2 -0.3 252.2 130.6
GKN . . . . . . . . . . . . . .208.5 2.7 237.1 109.3 Murray Income Tru . .636.5 -2.5 649.0 518.0 Dairy Crest Group . . .367.1 0.0 424.9 339.7 Taylor Wimpey . . . . . . .40.7 0.1 44.0 22.3 ITV . . . . . . . . . . . . . . . . .90.1 -1.6 93.5 48.3 GlaxoSmithKline . . .1179.0 6.0 1318.5 1095.0 Spirent Communica .151.3 1.4 160.3 102.8 Numis Corporation . .118.0 -1.0 158.5 109.0
Murray Internatio . . .931.0 7.0 966.0 791.5 Devro . . . . . . . . . . . . .293.0 4.2 293.9 161.0 Johnston Press . . . . . .12.3 0.3 33.5 9.1 Hikma Pharmaceuti .739.5 2.0 900.0 580.0 Patagonia Gold . . . . . .53.0 -2.0 59.3 12.5
BANKS Perpetual Income . . .252.8 -0.7 262.0 203.0 Premier Foods . . . . . . .26.3 0.0 34.4 16.0 INDUSTRIAL ENGINEERING Shire Plc . . . . . . . . . .1752.0 -5.0 1764.0 1321.0 TOBACCO Pursuit Dynamics . . .285.3 -13.0 700.0 180.0
Mecom Group . . . . . .263.3 0.3 288.0 162.0
Barclays . . . . . . . . . . .308.6 0.7 383.2 255.4 Polar Cap Technol . .354.0 0.0 391.2 269.0 Tate & Lyle . . . . . . . . .558.0 8.0 599.5 409.1 Bodycote . . . . . . . . . .330.4 5.4 331.3 179.7 Moneysupermarket. . .91.0 -0.6 92.9 61.0 British American . .2507.0 38.5 2521.0 1959.0 Rockhopper Explor .233.5 -0.5 510.0 37.0
HSBC Holdings . . . . .670.6 13.1 730.9 596.2 RIT Capital Partn . . .1292.0 -5.0 1328.0 1027.0 Unilever . . . . . . . . . .1840.0 5.0 1995.0 1688.0 Pearson . . . . . . . . . .1100.0 0.0 1117.0 864.0 REAL ESTATE INVEST. & SERV. Imperial Tobacco . .1912.0 8.0 2145.0 1753.0 RWS Holdings . . . . . .368.6 1.1 377.0 239.0
Charter Internati . . . .763.5 6.5 853.5 567.0
Lloyds Banking Gr . . .61.5 0.5 77.6 50.5 Schroder Asia Pac . .218.0 3.7 233.6 177.5 Fenner . . . . . . . . . . . .358.0 6.0 386.7 183.3 Reed Elsevier . . . . . .547.5 -3.5 590.5 460.6 Capital & Countie . . .161.0 2.2 162.0 100.0 Songbird Estates . . .143.0 2.5 180.2 133.8
Scottish Inv Trus . . . .507.0 4.0 516.5 401.5 FORESTRY & PAPER Daejan Holdings . . .2850.0 50.0 2919.0 2157.0 TRAVEL & LEISURE Sterling Energy . . . . . .70.0 -2.5 166.0 51.3
Royal Bank of Sco . . .44.4 0.6 58.1 37.6 IMI . . . . . . . . . . . . . . . .958.0 7.5 958.0 578.0 Rightmove . . . . . . . . .962.0 2.5 973.5 596.5
Standard Chartere .1680.0 -2.0 1950.0 1514.5 Scottish Mortgage . .719.5 4.5 742.5 533.0 Mondi . . . . . . . . . . . . .571.0 2.5 573.0 367.6 Melrose . . . . . . . . . . .312.0 -4.8 329.0 192.1 STV Group . . . . . . . . .151.5 0.0 152.5 49.3 F&C Commercial Pr .103.9 0.9 107.0 88.0 Avis Europe . . . . . . . .204.4 -4.6 284.7 190.0 Valiant Petroleum . . .630.0 -6.0 761.5 504.0
SVG Capital . . . . . . . .250.6 1.3 252.0 137.8 Rotork . . . . . . . . . . .1702.0 3.0 1895.0 1254.0 Tarsus Group . . . . . .145.5 1.0 149.0 107.0 Grainger . . . . . . . . . . .104.2 0.0 145.0 86.3 Betfair Group . . . . . . .955.0 67.5 1550.0 865.5 Vatukoula Gold Mi . . .167.0 -7.0 227.0 84.0
BEVERAGES Temple Bar Inv Tr . . .887.0 -5.0 913.5 717.0 GAS, WATER & MULTIUTILITIES Helical Bar . . . . . . . . .274.2 -1.3 358.8 262.0 Carnival . . . . . . . . . .2625.0 57.0 3153.0 2037.0 Young & Co's Brew . .595.5 1.8 670.0 502.0
Spirax-Sarco Engi . .1949.0 6.0 2057.0 1344.0 Trinity Mirror . . . . . . . .59.0 -2.8 170.1 58.0
AG Barr . . . . . . . . . .1104.0 16.0 1304.0 856.0 Templeton Emergin .628.0 4.0 689.5 497.0 Centrica . . . . . . . . . . .337.2 1.0 346.1 264.5 Weir Group . . . . . . .1695.0 -84.0 1861.0 846.0 United Business M . .621.5 -4.5 725.0 480.1 London & Stamford .129.6 1.2 133.5 110.3 Compass Group . . . .540.5 -0.5 594.0 492.6
Britvic . . . . . . . . . . . . .393.0 2.1 518.0 364.5 TR Property Inv T . . .174.9 -0.4 175.5 132.3 International Pow . . .322.1 -2.7 448.6 284.5 Ferrexpo . . . . . . . . . . .397.8 -8.8 447.9 219.0 UTV Media . . . . . . . . .137.3 -2.5 151.0 95.0 Savills . . . . . . . . . . . . .383.9 3.5 399.0 273.1 Domino's Pizza UK . .477.7 1.7 586.0 324.7
Diageo . . . . . . . . . . .1204.0 9.0 1258.0 1025.0 TR Property Inv T . . . .84.0 -0.4 84.4 59.2 National Grid . . . . . . .573.0 -0.5 596.2 484.2 Talvivaara Mining . . .552.5 -5.0 622.0 342.4 Wilmington Group . .164.5 -0.5 183.0 129.0 St. Modwen Proper . .176.4 1.9 201.0 135.4 easyJet . . . . . . . . . . . .357.0 3.0 496.5 348.6
SABMiller . . . . . . . . .2094.0 13.5 2306.0 1827.0 Witan Inv Trust . . . . .509.0 1.5 522.0 409.9 Northumbrian Wate .330.0 1.2 361.5 252.8 WPP . . . . . . . . . . . . . .807.5 -15.5 846.5 608.0 UK Commercial Pro . .79.0 -0.3 85.0 72.8 Enterprise Inns . . . . . .88.1 -3.2 139.3 84.4
Pennon Group . . . . . .624.5 -2.5 650.0 482.9 INDUSTRIAL TRANSPORTATION Unite Group . . . . . . . .213.0 2.7 270.0 163.0 FirstGroup . . . . . . . . .368.5 2.6 412.6 342.8
FINANCIAL SERVICES Yell Group . . . . . . . . . . .8.1 -0.5 59.0 5.8
CHEMICALS Severn Trent . . . . . .1503.0 -5.0 1513.0 1086.0 Go-Ahead Group . . .1457.0 14.0 1490.0 1042.0
BBA Aviation . . . . . . .209.4 -0.5 240.8 171.0 REAL ESTATE INVEST. TRUSTS
AZ Electronic Mat . . .292.3 -12.7 320.0 249.0 3i Group . . . . . . . . . . .303.2 -0.7 340.0 251.9 United Utilities . . . . .588.0 3.0 628.5 507.0 MINING Greene King . . . . . . .454.9 -4.2 491.4 376.2
Forth Ports . . . . . . . .1603.0 -2.0 1608.6 1112.0
Croda Internation . .1629.0 -20.0 1657.0 900.0 3i Infrastructure . . . .120.3 0.2 125.2 104.1
GENERAL INDUSTRIALS Stobart Group Ltd . . .146.0 1.9 163.6 132.0 African Barrick G . . .547.5 -20.5 670.0 501.5 Big Yellow Group . . .338.0 -0.3 353.3 284.4 InterContinental . . .1339.0 17.0 1435.0 959.0 http://corporate.webfg.com
Elementis . . . . . . . . . .157.5 -0.5 159.6 51.5 Aberdeen Asset Ma .216.2 3.9 229.5 120.0 Anglo American . . .3251.0 -35.0 3437.0 2254.0 British Land Co . . . . .574.0 -6.0 585.5 418.3 International Con . . .228.6 -1.9 305.0 184.2 mailto:
Ashmore Group . . . .341.0 1.0 383.7 235.0 Cookson Group . . . . .680.0 -21.0 703.5 367.4 NON LIFE INSURANCE Capital Shopping . . .398.3 2.0 424.8 301.0 JD Wetherspoon . . . .420.0 -11.9 548.5 386.5
Johnson Matthey . .1887.0 8.0 2100.0 1460.0 Antofagasta . . . . . . .1382.0 -38.0 1634.0 761.0
Victrex . . . . . . . . . . .1330.0 -18.0 1522.0 874.0 Berkeley Technolo . . . .4.3 0.0 9.0 2.2 DS Smith . . . . . . . . . .210.0 6.2 226.0 108.0 Admiral Group . . . . .1661.0 7.0 1753.0 1238.0 Aquarius Platinum . .381.1 -13.9 458.0 227.1 Derwent London . . .1733.0 -27.0 1767.0 1208.0 Ladbrokes . . . . . . . . .135.9 2.2 162.7 122.7 globaltechsales@webfg.com

EUSHARES USSHARES
Price Chg High Low In association with Price Chg High Low
AIR LIQUIDE........................................93.88
ALLIANZ ............................................104.15
ALSTOM ..............................................41.58
0.75
-0.35
-0.01
99.15
108.85
50.73
73.16
75.82
30.78 Don’t miss breaking 3M ........................................................93.75
ABBOTT LABS ...................................48.70
ALCOA ................................................16.49
1.35
0.20
0.24
94.16
55.55
17.68
67.98
44.59
9.81

news with our new

ANHEUS-BUSCH INBEV ....................41.07 0.06 46.33 35.06 ALTRIA GROUP ..................................25.66 0.28 26.22 19.20
ARCELORMITTAL...............................25.64 -0.08 33.68 20.26 AMAZON.COM..................................166.89 -2.19 191.60 105.80
AXA......................................................15.23 0.38 17.60 10.88 AMERICAN EXPRESS........................45.24 1.53 49.19 37.13
BANCO SANTANDER...........................8.31 0.07 10.57 7.00 AMGEN INC.........................................52.52 0.78 61.26 50.32

10:30 AM EMAIL
BASF SE..............................................59.96 -1.30 62.00 39.94 APPLE ...............................................355.76 0.40 364.90 199.25
BAYER .................................................56.18 -0.22 59.17 43.27 AT&T....................................................28.45 0.55 30.10 23.78
BBVA......................................................8.48 0.10 10.95 6.87 BANK OF AMERICA ...........................14.69 0.66 19.86 10.91
BMW ....................................................57.97 0.23 65.49 31.58 BERKSHIRE HATAW B.......................86.35 1.31 87.65 68.48
BNP PARIBAS.....................................53.20 0.97 59.93 40.81 BOEING CO.........................................72.04 1.16 76.00 59.48
CARREFOUR ......................................32.38 0.12 41.28 30.85 BRISTOL MYERS SQUI......................26.45 0.14 28.00 22.24
CREDIT AGRICOLE ............................11.99
CRH PLC .............................................15.97
0.21
0.12
13.78
22.00
7.87
11.51
Each day we’ll cover the morning’s breaking news, CATERPILLAR ..................................104.13
CHEVRON .........................................103.77
2.00
0.76
105.86
104.99
54.89
66.83
DAIMLER .............................................49.25
DANONE..............................................44.58
0.66
0.07
59.09
48.50
32.01
39.35
give you current market analysis and CISCO SYSTEMS................................18.22
COCA-COLA .......................................65.64
0.02
0.42
27.74
65.88
18.02
49.47
DEUTSCHE BANK ..............................44.60
DEUTSCHE BOERSE .........................56.07
0.06
0.45
55.25
62.48
35.93
46.33 the most up-to-date financial headlines. COLGATE PALMOLIVE ......................78.19
COMCAST CLASS A ..........................25.56
0.65
0.14
86.15
25.91
73.12
16.30
DEUTSCHE TELEKOM .......................10.01 0.38 10.64 8.51 CONOCOPHILLIPS.............................78.32 -0.88 81.00 48.06
E.ON.....................................................23.12 -0.07 28.93 20.86 DU PONT(EI) DE NMR........................54.26 1.00 56.19 33.66

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ENEL......................................................4.22 0.00 4.36 3.42 EMC CORP..........................................26.87 0.08 27.47 17.10
ENI .......................................................17.95 0.30 18.66 14.30 EXXON MOBIL....................................84.60 -0.12 88.23 55.94
FRANCE TELECOM............................15.68 0.15 17.92 14.01 GENERAL ELECTRIC.........................20.61 0.23 21.65 13.75
GDF SUEZ ...........................................27.56
GENERALI ASS...................................16.09
-0.02
0.00
30.05
18.25
22.64
13.31
receive our free email. GOLDMAN SACHS GRP ..................161.22
GOOGLE A........................................592.31
2.11
0.65
186.41
642.96
129.50
433.63
IBERDROLA ..........................................5.99 0.02 6.50 4.38 HEWLETT PACKARD .........................42.40 0.42 54.75 37.32

www.CityAM.com/newsletter
ING GROEP CVA...................................8.84 -0.01 9.32 5.34 In association with HOME DEPOT.....................................37.04 0.17 39.38 26.62
INTESA SANPAOLO .............................2.39 0.04 2.99 1.88 IBM.....................................................162.28 2.35 166.25 116.00
Visit:
KON.PHILIPS ELECTR .......................23.98 0.31 27.01 20.58 INTEL CORP .......................................21.13 -0.08 24.37 17.60
L'OREAL..............................................82.70 0.86 90.00 70.90 J.P.MORGAN CHASE .........................46.40 1.21 48.36 35.16
LVMH..................................................114.30 1.35 129.05 78.26 WORLD INDICES JOHNSON & JOHNSON.....................60.71 0.31 66.20 56.86
MUNICH RE .......................................118.60 0.60 126.00 98.38 KRAFT FOODS A................................31.45 0.12 32.67 27.49
Price Chg %chg Price Chg %chg Price Chg %chg Price Chg %chg
NOKIA....................................................6.06 0.06 11.82 6.00 MC DONALD'S CORP ........................75.54 -0.75 80.94 63.25
FTSE 100 . . . . . . . . . . . . . . 5974.76 0.98 0.02 S&P 500 . . . . . . . . . . . . . . . 1321.82 11.69 0.89 CAC 40 . . . . . . . . . . . . . . . . 4015.91 25.50 0.64 BOVESPA SAO PAOLO . . 68012.10 -133.43 -0.20
REPSOL YPF.......................................24.57 0.47 24.74 15.31 FTSE 250 INDEX. . . . . . . . 11743.52 -4.35 -0.04 NASDAQ COMPOSITE . . . 2765.77 20.14 0.73 SHANGHAI SE INDEX . . . . 2999.94 3.73 0.13 ISEQ OVERALL INDEX . . . 2924.05 -1.90 -0.06 MERCK AND CO. NEW ......................32.98 0.15 39.04 30.70
RWE .....................................................47.72 0.10 68.34 47.20 FTSE UK ALL SHARE . . . . 3103.13 0.31 0.01 FTSEUROFIRST 300 . . . . . 1147.43 3.57 0.31 HANG SENG . . . . . . . . . . . 23711.70 398.51 1.71 STI . . . . . . . . . . . . . . . . . . . . 3103.84 37.32 1.22 MICROSOFT........................................25.91 0.19 31.58 22.73
SAINT-GOBAIN ...................................42.19 0.30 44.85 27.81 FTSE AIM ALL SH . . . . . . . . 932.81 -1.96 -0.21 NIKKEI 225 AVERAGE . . . 10525.19 20.17 0.19 S&P/ASX 20 INDEX . . . . . . 2880.60 0.00 0.00 IGBM . . . . . . . . . . . . . . . . . . 1080.04 7.26 0.68 OCCID. PETROLEUM.......................100.92 -2.61 107.56 72.13
SANOFI-AVENTIS ...............................50.55 0.07 57.45 44.01 DOW JONES INDUS 30 . . 12214.38 124.35 1.03 DAX 30 PERFORMANCE. . 7164.75 2.82 0.04 ASX ALL ORDINARIES . . . 4902.50 0.00 0.00 SWISS MARKET INDEX. . . 6511.21 15.69 0.24 ORACLE CORP...................................32.75 0.65 33.71 21.24
SAP ......................................................43.37 -0.40 45.05 33.28 PEPSICO .............................................63.79 0.32 68.11 60.32
SCHNEIDER ELECTRIC ...................116.55
SIEMENS .............................................94.28
-1.55
-0.31
123.30
98.92
73.95
66.43
COMMODITIES CREDIT & RATES PFIZER ................................................19.68
PHILIP MORRIS INTL .........................64.25
0.07
0.61
19.90
64.60
14.00
2.00
SOCIETE GENERALE.........................47.25 0.70 52.70 29.71 LON GD ONCE FIX AM...........1435.00 -2.00 TIN CASH.............................31740.00 -160.00 BoE IR Overnight ............................0.500 0.00 Euro Base Rate ...............................1.000 0.00 PROCTER AND GAMBLE ..................62.05 0.34 66.95 39.37
TELECOM ITALIA..................................1.14 0.03 1.16 0.88 SILVER LDN FIX AM ..................35.90 -0.26 ZINC CASH ............................2410.00 -76.50 BoE IR 7 days .................................0.500 0.00 Finance house base rate ................1.000 0.00 QUALCOMM INC ................................57.15 -0.43 59.84 31.63
TELEFONICA ......................................18.24 0.15 19.69 14.67 MAPLE LEAF 1 OZ ....................66.50 0.00 BoE IR 1 month ..............................0.500 0.00 US Fed funds...................................0.250 0.00 SCHLUMBERGER ..............................89.85 -0.40 95.64 51.67
BRENT SPOT INDEX ................117.00 1.20 BoE IR 3 months ............................0.500 0.00 US long bond yield .........................4.020 0.00
TOTAL..................................................43.65 -0.05 44.63 35.66 LON PLATINUM AM................1815.00 -23.00 TRAVELERS CIES ..............................59.06 0.10 61.15 47.69
SOYA .....................................1387.75 0.00 BoE IR 6 months ............................0.500 0.00 European repo rate .........................0.866 0.09
UNIBAIL-RODAMCO SE...................148.15 0.40 155.95 105.19 LON PALLADIUM AM ...............789.00 -25.00 UNITED TECHNOLOGIE ....................83.26 0.98 85.46 62.88
COCOA ..................................3721.00 0.00 LIBOR Euro - overnight ..................0.825 0.37 Euro Euribor ....................................0.895 0.02
UNICREDIT............................................1.80 0.02 2.30 1.46 ALUMINIUM CASH .................2565.50 -21.50 LIBOR Euro - 12 months ................1.884 0.01 The vix index ...................................19.61 -1.05 VERIZON COMMS ..............................36.48 0.47 37.70 24.77
UNILEVER CVA...................................21.89 0.17 24.11 20.68 COPPER CASH ......................9840.00 -130.00 COFFEE...................................281.15 0.00 WAL-MART STORES..........................52.44 0.42 62.50 47.77
LIBOR USD - overnight...................0.219 0.00 The baltic dry index ........................1.382 0.03
VINCI....................................................43.71 0.06 44.98 33.01 LEAD CASH ...........................2619.50 -50.50 KRUG.....................................1483.70 1.00 LIBOR USD - 12 months .................0.784 0.00 Markit iBoxx...................................212.56 0.00 WALT DISNEY CO ..............................43.20 0.18 44.34 30.72
VIVENDI ...............................................19.99 0.09 22.07 16.18 NICKEL CASH ......................28525.00 -400.00 WHEAT ....................................194.00 -3.50 Halifax mortgage rate .....................3.500 0.00 Markit iTraxx ....................................98.98 0.00 WELLS FARGO & CO.........................32.51 0.79 34.25 23.02
 22 Wealth Management | Foreign Exchange
GET TRADING
EDUCATION ON
A SHOESTRING
TOM HOUGAARD
CONSULTING ANALYST, INTERTRADER
I
RECEIVED a phone call from a guy who wanted
help with his trading. He had spent nearly
£15,000 on trading education with a well known
educational trading establishment. Yet he was
nowhere closer to making trading his chosen career
than he was before, despite his sizeable investment
in trading education.
I related the story to a few of my trading friends
and together we came up with a book budget,
which we felt would amply cover the syllabus the
unfortunate man had been through, and at a frac-
tion of the cost. In fact, we calculated that it would
probably have saved him more than 99 per cent.
BOOK NO. 1
Technical Analysis of Stock Trends by Robert
Edwards and John Magee. This will cover 95 per
cent of your trading education. It covers everything
you would want to know and it will cost you £23.
Although concerned with stocks it is fully applica-
ble to trading FX, futures and any other asset class.
BOOK NO. 2
High Performance Trading by Steve Ward. This is a
complete psychological infrastructure of trading,
dealing with everything you need to trade for a liv-
ing. It will cost you £19.
And that is all you need to purchase for now. The
rest you can find on the internet for free. In Google
you will need to search for “pattern recognition” so
you know what patterns to look for. You need to
search for “candle chart patterns” so you under-
stand price action. Finally, you can consider joining
a bulletin board where experienced traders post
their trades. You can learn a lot from that alone.
InterTrader frequently run webcasts where experi-
enced traders talk about specialist topics.
Once you have studied the material, you are
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The views and comments in this article are not the
views of InterTrader.com. The provision of this infor-
mation should not be construed in any circumstances
as a recommendation or solicitation to buy or sell any
security or financial instrument.
Europe’s tale of
two currencies
couldn’t be
more different
The Swiss franc has dipped against its euro
and dollar pairs but the final countdown to
interest rate rises is crucial, writes Craig Drake
P
ARTS of Geneva may now be start-
ing to look like Fulham as bankers
and fund managers flee there to
celebrate the manyfold merits of
the UK’s 50 per cent income tax rate. The
Swiss treasury, probably progressive tax-
ation’s biggest champion, had also seen
its franc strengthen. Its status as a haven
currency was recently underlined by pur-
chases by hedge funds and the big play-
ers in the money market as oil prices and
the events in Christchurch sent volatility
indices northwards. And although one
may have thought that Swiss jobs would
be taken by London financiers and their
families, the Swiss economy is indeed
strong: Switzerland’s unemployment
rate fell in February, dropping from 3.5
to 3.4 per cent.
A DIP IN THE SWISSIE
But though things may have been look-
ing rosy in the land of clocks and
toblerones, the Swiss franc has recently
dropped off against the dollar. The
strong performance as a result of flight
into the franc abated once wild specula-
tion as to the direction of oil was tem-
pered by the Organisation of the
Petroleum Exporting Countries (Opec)
signalling that it would increase oil pro-
duction in the face of the disruptions
caused by events in Libya
According to Ian O’Sullivan at
Spreadco, the reduced flows into the
Swiss franc are most likely just a tailing
CITYA.M. 9 MARCH 2011
off of risk perception as things got a lit-
tle less wobbly in the MENA: “as people
sit watching CNBC and Bloomberg flash
images across their screens of riots in
the Middle East, they start trying to
shore themselves up with the franc.
After the initial surge, the momentum
traders who are looking at the short
term will start taking profit.”
In his regular column, Boris
Schlossberg at GFT was asking last week
why we had yet to see flight into the dol-
lar despite continued turmoil in the
Middle East, concerns over the Irish res-
cue deal and fears over rising commodi- somehow managed to see a steady ride
ty prices. Had the dollar lost its safe against the dollar. Despite the currency
haven attraction? But Tuesday saw the being thrown into a hessian sack and
dollar climbing to a nine day high knocked around the room with the
against the franc. We have started to see blows of one bailout and debt crisis after
that the answer was that we were seeing another, it has still seen consistent gains
only short term flirtation with the franc against the greenback. Although the
before the strong flows of petrodollars euro has benefited from petrodollar
drove the dollar back up. A real fight- countries trying to diversify their cur-
back from the dollar came on the back of rency holdings, the euro has largely been
an announcement by Kuwait’s oil minis- held high by yield differentials against
ter Sheikh Ahmad Abdullah al-Sabah the US dollar. We are also seeing a 2 year
that Opec would be in talks with a view high in the yield differential in favour of
to ramping up oil production for the the euro with the European Central
first time in two years. Bank likely to raise interest rates long
before the US Federal Reserve does.
EURO RISING...
The Swiss franc was also down at the ...DESPITE ITS DEBT CRISIS
start of the week against the euro, with Although the euro seems to be happily
euro-franc rising 0.28 per cent to hit gaining against the dollar, this seems to
1.2981 on Tuesday. be an odd situation as news was
The European single currency has also announced that ratings agency Moody’s
CITYA.M. 9 MARCH 2011 Wealth Management | Foreign Exchange 23

Trichet’s speculations last THE

week that the central bank TIPSTER
will ramp up interest rates, CLARITY ON
have fuelled criticism. EURO MIGHT
SEE BUYING

had reduced Greece’s sovereign debt rat-
ing from Ba1 to B1, a drop of three
degrees to a classification of “highly
speculative”
Furthermore, comments from Axel
Weber, the head of the Bundesbank,
backing up ECB president Jean-Claude
Trichet’s speculations last week that the
central bank will ramp up interest rates,
have fuelled criticism from those who
say that this raise will hit those barely
treading water on the Eurozone periph-
ery.
According to Michael Hewson, an ana-
lyst at CMC Markets, the widely speculat-
ed interest rate hike is the potential
straw that breaks the camel’s back.
“There is still a real European debt crisis
that the market seems to be carrying on
regardless of. This is partly because the
ECB doesn’t meet to discuss interest
rates until the end of the month. In
short, the conclusion of the discussions
as to how to respond to the next round
of the European debt crisis will be that if
Germany doesn’t stump up the cash to
shore up the ailing parts of the euro
area, then the zone is in real difficulty.”
At first sight, it seems that the euro is
a currency on a slow, steady ascendancy
whereas the franc is seeing a slump after
a short term rise. However, beneath the
surface things couldn’t be more differ-
ent. The Swiss franc is backed up by an
economy of Alpine solidity. The euro,
though boasting the steel structure of
German industry, is resting on Belgian
chocolate foundations, now exposed to
the Mediterranean heat of Spanish and
Portuguese economic woes.
ANALYSIS l Euro and dollar pairings
with Swiss franc
2%
1% Euro
Dollar
0 relentless slide in US dollar-Swiss franc
-1%
-2%
The 1980s was a
great time for glam -3%
rockers Europe, but
recent years haven’t
been great for their -4%
political tribute act
Picture: REX 14 Feb 21 Feb 28 Feb 7 Mar
E
UROPEAN officials are preparing to
announce a comprehensive solution to
the “peripheral problem”, with an
expansion of the existing European
financial stability facility (EFSF). Given the
market focus on the issue, it is likely that a
large proportion of market participants are
speculatively short on the euro as a hedge
against default risk becoming market news.
The comprehensive set of measures set to be
announced on 25 March have a decent
chance of inducing euro buying, as the
European outlook becomes a little clearer and
more certain. This coming Friday’s gathering
of EC ministers may not deliver anything con-
crete, but their comments should raise volatil-
ity in euro pairs. Alpari offers a spread on the
euro-US dollar of $1.39192-$1.39208.
Dealers have reported a noticeable shift
from petrodollar accounts away from the
Swiss franc towards the euro recently and
the euro-Swiss franc seems to have put in a
solid base around SFr1.28 from which to
press forward. Support is currently coming
from the 50 day exponential moving average
around SFr1.2920, with the 100 day moving
average currently keeping a lid on things
around SFr1.3035. If it can break this level
we could see it hit SFr1.320 pretty soon.
Spread Co offer a spread on the euro-Swiss
franc of SFr1.2975-SFr1.2978.
Sticking with the Swiss franc, the almost
may have turned a corner yesterday with the
dollar fighting back. The US dollar-Swiss
franc finally broke through the SFr0.9325
resistance (the lows from January and
February) and at the time of writing was try-
ing to get above its 15-day exponential mov-
ing average around SFr0.9344. A close above
this level could well see it climb towards the
SFr0.96 mark where longs should look to
book profits. Spread Co offers a spread on
US dollar-Swiss franc of SFr0.9346-
SFr0.9349.
Philip Salter

FOREX ANALYST PICKS

FOREX STRATEGIST FOREX STRATEGIST FOREX STRATEGIST
JOHN KICKLIGHTER ILYA SPIVAK JOEL KRUGER

My pick: Short Aussie dollar-dollar, Long dollar-Swiss franc My pick: Short euro-dollar up to $1.3860 My pick: Short euro-dollar at $1.4025
Expertise: Fundamental and Technical Analysis with Risk Management Expertise: Global Macro Expertise: Technical Analysis
Average time frame of trades: 1 day to 1 week Average time frame of trades: 1 week to 6 months Average time frame of trades: 1 week to 6 weeks

Opposing views on the yen with my long dollar-yen and short euro-
yen tripped a first target on the first and stop on the second. The
notional difference between the two was substantial; but position
size actually evened the two out. I’m still waiting to jump on an
Aussie dollar-dollar short should it drop below parity and $0.99. In
the meantime, I like a purely speculative long dollar-franc above
SFr0.9330 with a 125 stop and first objective.
Euro-dollar is testing trend defining resistance at a falling trend line set from
the record high in July 2008. Speculative net short positions have returned to
the highs noted in October 2009 and 2010, where they foreshadowed a sig-
nificant top in the currency pair within 2-4 weeks. Negative RSI divergence
and a bearish Inverted Hammer candlestick reinforce the case for a down-
side scenario. I will enter short on a daily close below $1.3860, initially tar-
geting $1.3485. A stop will be triggered on a close above $1.4035.
The latest surge through key resistance by $1.3975-$1.4000 looks to
be a little too aggressive in our opinion and from here we would not
expect to see sustainable gains above $1.4000. While we would not
rule out the potential for an eventual assault on the November 2010
highs at $1.4280, the risks from here are for a shorter-term bearish
reversal towards the $1.3600-$1.3800 area. Position: short at
$1.4025 for $1.3625.
 Lifestyle
24 CITYA.M. 9 MARCH 2011

| Motors WORDS BY
RYAN BORROFF

E LA
VIV nce
dif fere
With petrol costs heading up
towards £6 a gallon, the age
of the electric car has arrived

D
RIVING the Peugeot iOn is certain- expected. The availability of instant ture too big to deal with here. are free in some London boroughs for
ly unusual. Until now the only oomph does make driving in traffic a tad And the price is prohibitive for many. electric vehicles, plus free VED road tax,
electric cars I have driven have easier – though I seem to drive more You can only lease the car, not own it, at then owning an iOn may make financial
been the excellent Tesla sports car slowly, a bit more gently. This is not at all £415 a month – but this includes mainte- Do your bit to cut out sense. But park the car outside your front
that looks like a Lotus Elise, and the con- a bad thing, because in an electric car nance and full warranty. Running costs noise pollution door for 90 per cent of the time like most
siderably less good G-Wiz which looks putting the air-conditioning on, even the are estimated to be just £185 per 10,000 people do, and adopting an iOn is almost
like Noddy built it on his weekends from windscreen wipers, cuts down the car’s miles which compares to £1,950 in a car certainly not for you.
a kit. These cars exist at opposite ends of range. The steering is a little light, which that averages 30mpg. If you are used to But if you are an urban commuter
the electric car market. The iOn is slap is all the more surprising because I paying the congestion charge each day committed to the car, who won’t ride a
bang in the middle. It is a real-world elec- expected the car to feel heavy on account (£2,520 annual charge) – which is free for bike and for whom public transport just
tric car, the first of a few on the road this of all of those batteries under the seats. electric car drivers – and expensive park- won’t do, then a car like the iOn is worth
year. It is stylish and has four doors, four It’s a perfectly acceptable driving experi- ing charges (eg.£2,000 annually) – which a look. Calculator in hand, of course.
seats and a boot that you could fit your ence that’s a bit more engaging than I
weekly shop in. It still packages an elec- expected when the car just needs the
tric motor and battery pack in its body inputs of steer, brake and go. THE FACTS:
without compromising on interior space. The question of whether you should PEUGEOT iON
Inside, it has some quite poor plastic trim get one for the daily commute is a bit
on the doors, piano black trim around more complicated. You’ll need a calcula- PRICE: £415 per month
the audio and air-con controls, and tor and a good deal of chin-scratching 0-62MPH: 15.9 secs
except for its dashboard instruments before such a decision can be made. It TOP SPEED: 81mph
which indicate charge, range and power takes seven hours to fully recharge the
it is like any other small, city car except battery at home using a household sock- CO2 G/KM: 0g/km
there is absolutely no sound at all to let et; a special charger can charge 80 per RANGE: 93 miles
you know it’s ready to go. cent in 30 minutes. With a daily com-
Driving it around London, the iOn mute of 50 miles or less, on a full charge THE VERDICT:
proved almost completely silent. There is driving the iOn would be anxiety-free, DESIGN hhhii
a small amount of wind and road noise, but a spontaneous decision to travel fur- PERFORMANCE hhhii
but really all you can hear is a very slight ther afield would be dependent on PRACTICALITY hhhii
whining of the 47kW motor. It is actually whether charging points are available en VALUE FOR MONEY hhiii
quite peaceful and more fun than I route. And that’s an issue of infrastruc-

CAR TALK BY RYAN BORROFF

Mini Rocketman VW Bulli Suzuki Swift S-Concept

Ok, so it’s an awful name but this is the coolest Mini since Alec
Issigonis penned the original. Unlike the Minis in the current range,
this one – called Rocketman – is a real mini Mini at last. Launched
last week at the Geneva motor show, the car has a 3+1 seating lay-
out and points to how future Minis will look.
This VW Bulli concept is a spiritual successor to the iconic VW T1
bus of the 50s and 60s. Unveiled last week at Geneva, the bus has six
seats, including a stowable rear bench seat and reclining seats that
allow the interior to transform into a compact camper. Oh, and it has
an iPad-controlled entertainment system so it must be cool.
If hot hatches are your thing this concept previews the hottest sport
version of the Suzuki Swift yet. Suzuki has lowered the body by
30mm and the car is wider by 60mm than the standard Swift. That
big rear spoiler gives the car a very dynamic look. Inside, it has a
sporty steering wheel, Recaro Sport seats and carbon fibre trim.

Wide choice, great value, first class service.

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 25

London 2012 MUST SEE

TOP FIVE
EVENTS p28 - 29

The Games mean business

Now’s the time for companies to book an Olympics seat, writes Seb Coe
L
ondon 2012 is fast-approaching and in the
east of London, the landscape has altered
significantly as the Olympic Park rises up
from what was a previously under-devel-
oped patch of earth. Its progress is tribute to
the Olympic Delivery Authority and the 10,000
or so workers who are charged with its con-
struction. It will host world class sport in the
summer of 2012 and then will become the
heart of a brand new community in the subse-
quent years. At a point when the economy has
been so unpredictable, there is a school of
thought which says this could not have come
been any better timed. I rather suspect that
those 10,000 workers would agree.
London 2012 has been something of a tri-
umph for UK plc. Across the project, we have let
around £5bn worth of contracts, 98 per cent of
which have gone to UK based businesses. Some
of the feats of engineering onsite are impressive
beyond belief and if you add in some of the new
industry standards set in terms of sustainabili-
ty and health and safety, the legacy that
London 2012 will leave for the construction
industry is something that we can be rightly
proud of. A better global advertisement for UK
industry and innovation, you could not ask for.
Add to this some of the country’s biggest and
best known companies also contributing nearly
£700m to London 2012 through sponsorship,
then you have a recipe for success.
On 15 March, the application process opens
for tickets – a major landmark for us, as sales of
tickets account for a sizeable portion of the
money we need to stage the Games. But also we
need to sell those tickets to ensure our venues
are packed to the rafters with sports fans. And
this is another opportunity for British business.
I’m sure many people will have already
signed up to our website at www.tickets.lon-
don2012.com and will have been receiving
information about the 26 sports and how to
apply.
When the process opens on 15 March, those
people will have six weeks to apply for tickets –
and remember, it’s not first come, first served
so you can apply at any point before 26 April.
Of the 8.8m tickets on sale, 75 per cent of them
will be available through this process. But also
going on sale from 15 March are our hospitality
packages. Although accounting for less than 1
per cent of our total tickets, these tickets are
hugely important to us. For every package
bought through our on-site hospitality
provider, Prestige Ticketing, one ticket is donat-
ed to our Ticketshare scheme which will see
children across the UK receive Olympic Games
tickets.
We are working hard with Prestige Ticketing
to ensure that the onsite hospitality offered at
Games-time is genuinely best in class, with food
representing the ‘Best of British’ and sustain-
ably sourced. Thomas Cook, one of our spon-
sors, is also offering fantastic accommodation
packages for sports fans across the UK and
Jetset Sports will be working with us to offer
hospitality opportunities to those coming in to
the UK from across the world.
UK plc is going for gold with its contribution
to the Games so far. 15 March represents a fan-
tastic opportunity to enjoy the fruits of its
labour. If you want to be there, then now is the
time to act. It is the greatest show on earth. See
you there.

l Seb Coe chairs the 2012 Organising Committee

 We’re getting
ready are you?

Prestige Ticketing is the official on-site hospitality programme

for the London 2012 Olympic and Paralympic Games.

Hospitality packages go on sale on 15 March

Pre-register your interest now at
www.prestigeticketing.london2012.com
or call 0844 7228 2012

Don’t miss out on this once-in-a-lifetime opportunity

to entertain at the greatest show on earth.
CITYA.M. 9 MARCH 2011 London 2012—The Games mean business 27

Business has won already

Now’s the time to show clients what has been achieved, writes David Hellier

T
HAT much of the debate over
the Olympics has focused on
what happens to its venues
after 2012 speaks volumes for
the efficiency with which the games
have so far been organised. Instead of
the endless speculation of whether
venue X or Y will be ready on time
that is normal territory in the
months leading up to such events,
arguments have raged on which
London football club will take over
the running of the Olympic Stadium
once the games are over.
By most standards, the organisers
of the Games have played a blinder.
But they are the first to admit that
they could not have achieved so
much, so cleanly, without a massive
amount of assistance from the busi-
ness community.
The Games themselves are effec-
tively being organised by two bodies.
One is the publicly funded Olympic
Delivery Authority. It has responsibil-
ity for the building of the venues and
the infrastructure. The second body,
LOCOG, is mainly privately funded
and it has been tasked with organis-
ing the events themselves, the pub-
licity and marketing and the
ticketing for them. So far the LOCOG
organisers—many of their staff are
secondees from the private sector—
have around £700m in goods and
services from business.
ADVERSE ECONOMIC BACKDROP
This input has been achieved against
a poor economic backdrop, with
financial companies in particular
knocked sideways by the sub-prime
collapse. Chris Townsend, commer-
cial director for the London
Olympics’ organising committee
says: “These are real record numbers
and here you have leading brands
paying for the delivery of the Games
through cash and through lending
their expertise.”
Townsend says one reason for
London’s success has been that the
organisers have adopted what he
terms as a “true business partnership
model”. The organisers offered up
three categories of sponsorship and
offered sponsors exclusivity in their
respective business sectors. Hence
Lloyds Banking Group, for example,
is the only bank to be involved, BMW
the only car company and Deloitte
the only professional services group.
Importantly, say those involved,
London extended sponsorship cate-
gories to throw them open to non-
retail sectors. Tim Jones, the London
managing partner of Freshfields,
says: “The key thing about these
Games is that they have been opened
up to business organisations who
have often provided value in kind to
the organisers. From a business per-
spective, it’s a good differentiator
being able to show how we have been
successfully involved in a massive
project of this kind.”
VITALITY OF THE PRIVATE SECTOR
Freshfields has been involved in the
Games since 2003, when it played a
part in submitting the opening bid
for London. Jones says that one of the
key differences between the London
bid and those that lost was that
London emphasised the private sec-
tor participation. “There hasn’t been
a bureaucratic approach to this
event. What we all said was let’s
draw on the vitality of the business
community and we have.”
Heather Hancock, lead Deloitte
2012 partner, says that the tendering
process was extremely competitive.
“It soon became clear to us that you
would not want one of your competi-
tors associated with the Games. But it
also really mattered that we were
truly involved in delivering the
Games.”
For Lloyds Banking Group, which
was the first to sign up as a sponsor,
the value of being involved with the
Games became all the greater when-
the bank hit problems following its
disastrous merger with HBoS. Says
Sally Hancock, the director of the
London 2012 Partnership at the
bank: “Our involvement became
more important and not less after
the banking crisis because we knew
that if we did things well and appro-
priately that would change the way
people felt about the bank.”
Assuming the venues continue to
reach completion without any last
minute hitches the biggest task from
now on in is selling as many tickets
as possible.
There are 8.8 million tickets on
sale, of which one per cent are
reserved for corporate guests. The
message from the organisers to busi-
ness is a simple one. You’ve helped us
create this spectacle, now come and
watch them in style.

Seeing the Games in Style WORDS BY

An anticipation area awaits ZOE STRIMPEL

I
T’S THE only time in your life that
the Olympics will be in London. And you’re
in. As you walk into the winged, three-floor
structure attached to the Olympic Park for
dinner, the very building seems to urge you on
to rejoice in, quite simply, how cool this all is.
“We want people to exclaim: ‘wow, we never
thought it would be like this’”, says Tony
Barnard, head of Prestige, the company in
charge of corporate hospitality at London 2012.
Prestige is so intent on wowing that Barnard
has called the area in the central atrium of the
structure – a massive glass entryway with an
interactive icon powered by solar energy – the
“anticipation area”.
That corporate hospitality guests will be
watching the games of their choice (and budget)
is obvious. But the question on all prospective
customers’ lips, says Barnard, is: “What will the
food be like?”
A TRUE CELEBRATION
This part of the package must be perfected. The
standard of food has risen so sharply in London
and the UK that nothing but the best will do.
Couple this with the fact that corporate hospi-
tality was born in London, and that nobody feels
like splashing cash without exquisite returns
The theme of the games’ hospitality offering is, predictably, best of
British. This means “no fuss”, and an emphasis on good ingredients.
these days, and you’ve got a recipe for all-stops-
pulled-out.
The theme of the games’ hospitality offering
is, predictably, best of British. This means “no
fuss”, an emphasis on good ingredi-
ents, ethically produced, seasonal
and from small (or as small as possi-
ble to supply the Games) farmers
and growers. Strawberries and
cream, says Barnard, is a bit cliche.
“We can do better than that”. Think
a true celebration of British fruit –
summer pudding loaded with
currants, indigenous berries of
all sorts, doffed with Devon
cream. Think Scottish lan-
goustines, Cromer crab,
Cornish sole.
Barnard himself is heading off
in a boat with a Cornish fisher-
man of lemon sole and he’ll be for-
aging too, to find the best suppliers.
British wine will be used where pos-
sible, but it’s not available in the quantities sup-
plied, so high quality French and New World
wine will be on hand too.
Prestige has seven of London’s most historical
or architecturally impressive venues to work
with and the food and entertainment will
reflect the brilliance of the locations – and the
character of each.
At Olympic Park in Stratford, service and din-
ing will be formal – perfect for the most
august of law firms and banks.
Depending on your ticket, you can
expect the very highest quality of
British food – (the quality
promises to be high
throughout, but the
value of ingredients may
rise for the most expen-
sive packages, such as the
Opening and Closing cere-
monies).
There are six restaurants in the three-
story Olympic Park structure, similar in
food and allocated according the timing of your
event.
Meanwhile, at Horse Guards Parade, where
the beach volleyball will be held, there will be a
“five star Maldives” design, “where it’s not clear
where the restaurant ends and the beach
begins” and, Barnard reckons, a buffet or bar-
beque of fresh-cooked fish. Following dinner
and the game, this pop-up beach club will turn
into a party – Ibiza style, but all very luxe.
OLYMPIC MEALS
Sustainability and impeccable sourcing will be
an overt theme. Of particular note – and a true
sign of the robustly provenance-obsessed times
(so long, plate of poached salmon and new pota-
toes, once beloved of corporate hospitality!) - is
the short film before dinner is served at the
Olympic Park.
Three minutes long, and played three min-
utes before dinner is served, projected on the
“giant” screen in the room, will be a brief docu-
mentary of where the food came from, the story
of its cultivation, how it was prepared by the
chefs and then a word about the wine.
Foodies take note: don’t let your Olympic
meal steal the limelight from the games them-
selves.
 28 London 2012 – What to see CITYA.M. 9 MARCH 2011

EVENTS The main

Frank Dalleres looks at the sports likely to draw the

biggest corporate crowds at next year’s Games

> ATHLETICS
3–11 August
n OVERVIEW
Not just one event of course but a multitude of disciplines taking in
track, field, combined and road competitions, athletics is the
cornerstone and focus of any Olympics. More than 2,000 athletes
will taking part, including sprint superstar Usain Bolt [pictured,
right] a number of Britons who have been working towards medal
performances since the Games was awarded to London six years
ago, including heptathlete Jessica Ennis
[pictured, left].
n HIGHLIGHTS
So many to choose from, but perhaps
the most sought-after tickets will be
for 5 August, when the fastest men
on the planet, including Jamaican
Bolt, will do battle for 100m glory.
Native east Londoner Christine
Ohuruogu defends her 400m title
on the same day, while Ennis
looks to add Olympic gold to
her world and European
titles on 3 and 4 August. Triple jump
king Phillips Idowu, a silver medallist
in Beijing, will be looking to go one
better on 9 August, while the sprint
relays round off the track action on
11 August.
n VENUES
Nearly all of the athletics will take place in the brand new, 80,000-
seater Olympic Stadium in Stratford’s Olympic Park, apart from the
road events, such as the marathon, where Paula Radcliffe represents
the best British hope, which will finish on The Mall.
n CORPORATE TICKET INFO
Hospitality chiefs boast that facilities at the Olympic Park will be the
ABOVE: The City played a significant role
very best of any sporting experience in the world. At least six
in the delivery of the London 2012 Games
restaurants capable of sitting a total of 3,000 guests and the best
seats in the house will cost £45,000 for a table of 10, contingent on PHOTOS: Allsport, Wikimedia Commons,
buying packages for cheaper, less in-demand events. If you want the Olympic Delivery Authority
best, it comes at a price. For more information call Prestige on 0844
728 2012 or email info@prestigeticketing.london2012.com

> TENNIS
28 July–5 August
n OVERVIEW
Five medals are up for grabs in
the men’s and women’s singles
and doubles, as well as the
mixed doubles. The competi-
tion is taken seriously by the
world’s elite: witness Rafa
Nadal winning gold in Beijing.
n HIGHLIGHTS
The big question will be
whether Andy Murray [pic-
tured, above] can bring cheer
to success-starved British ten-
nis fans. If a grand slam contin-
ues to elude the Scot, Olympic
gold could yet prove his crown-
ing achievement. He’ll hope to
be in the men’s singles final on
5 August.
> EQUESTRIAN
n OVERVIEW
n HIGHLIGHTS
n VENUE
Wimbledon, the home of lawn
tennis, will get a rare second
major airing of the year. The
finals take place on the recent-
ly refurbished Centre Court.
n CORPORATE TICKET INFO
Guests will enjoy the very same
facilities they would at the
Championships, albeit with a
flavour of the same food and
entertainment available at
other Olympic sites. Prices for a
table of 10 start at £4,950, ris-
ing to £9,950 for the two sin-
gles finals, which also require
other packages to be pur-
chased. For more information
call Prestige on 0844 728 2012.
28 July–9 August
n VENUE
The equestrian events are
divided into three disciplines:
dressage (2-8 August), event-
ing (28-31 July) and jumping
(4-8 August), all taking place
just a stone’s throw from both
central London and the main
Olympic site in Stratford.
n CORPORATE TICKET INFO
Zara Phillips [pictured, below],
the Queen’s grand-daughter, is
hoping for success in eventing
and is among the best British
hopes of a medal. Her partici-
pation is expected to bring the
sport to the attention of a
wider audience.
Greenwich Park is hosting all
of the equestrian events,
including the cross country,
and is proving a popular desti-
nation for corporate clients
who have already registered
their interest in tickets.
A two-storey facility with a tra-
ditional theme boasting two
restaurants with a total of 500
covers is being constructed just
> ROWING
metres from the action. Prices
for tables of 10 start at £4,950
28 July–4 August
and rise to up to £9,950 for
finals. For more information call
Prestige on 0844 728 2012. n OVERVIEW n VENUE
Team GB has a strong heritage All disciplines are taking place
in rowing, from the historic at Eton Dorney, an eight-lane
achievements of quadruple course set in parkland near
gold-winning Sir Steve Windsor Castle. It is a short
Redgrave to the world- train or car journey (parking
renowned Boat Race. available at the neighbouring
racecourse) from London.
n HIGHLIGHTS
The action hots up on 1 August, n CORPORATE TICKET INFO
the first of four days of finals in Seats are right on the finish
which home competitors are line and the double-decker
strongly fancied to make an restaurant will seat 500. Prices
impact on the podium. Team for a table of 10 range from
GB duo Mark Hunter and Zac £4,950 to £7,950, the latter for
Purchase [pictured, above] finals days which also require
struck gold in the men’s light- buying a package for a lower
weight double sculls four years category event. For more infor-
ago, and will be looking to mation call Prestige on 0844
repeat that feat on 4 August. 728 2012.
CITYA.M. 9 MARCH 2011 London 2012 – What to see
> FOOTBALL
26 July–11 August
n OVERVIEW
Hopes are high that Team GB can deliver some long-awaited home
cheer on the international football stage, even if that dream has
been undermined a touch by internal wrangling. The men’s team,
which must be made up largely of under-23s and is tipped to
involve David Beckham as either a player or a coach, will have to
see off 15 other nations, while the women’s competition features
12 teams.
n HIGHLIGHTS
Due to the largely youthful nature of the competition, it’s a chance
to see some of the stars of tomorrow, with Argentina’s 2008 win-
ning side boasting the likes of Lionel Messi, Angel di Maria and
Sergio Aguero. The holders have not qualified for London 2012,
but Brazil are likely to bring Neymar, while Team GB—which may
only include English players—could feature youngsters such as
29
Ipswich’s Connor Wickham and Southampton’s Alex Chamberlain.
n VENUES
The most widely spread of all events, it’s being held as far afield as
Cardiff, Glasgow, Manchester, Newcastle, Coventry and, of course,
London. Wembley is the capital’s sole football venue and will host
both finals: women’s on 9 August and men’s on 11 August. At
90,000 it is one of the world’s biggest stadia and the ideal setting
for Team GB to claim gold, just as they did in 1908 and 1912.
n CORPORATE TICKET INFO
Wembley will have up to 17,000 premium seats and hospitality
places for each match, all in the Club Wembley area. Ticket prices
range from £67.50 to £192.50, while ticket and hospitality prices
for restaurants and suites will be £270 to £630 per person, per
event. For more information call 0844 980 0038.
30 London 2012—The Games mean business
The hosts with the most in 2012
Three hospitality groups beat rivals to the rights to sell corporate tickets, writes John Dunne
T Guide to ticket firms:
HREE groups have been given the
rights to sell   packages for the
Olympic Games after a bidding
process which saw them beat a
field of other companies to the finishing
line. 
The main UK  domestic packages are
being run by an alliance between
Prestige ticketing and Mike Burton-
Sodexo, while US agency JetSet  has also
been given a podium place. 
Thomas Cook has also been chosen
and will offer short-stay hotel packages
for the Games along with tickets for
events. 
JetSet will get access to around 60,000
tickets and Mike Burton-Sodexo with
Prestige ticketing around 70,000.
That will account for just under two
per cent of the total 10m tickets that will
be sold for the 2012 Olympics and
Paralympics.
The JetSet one per cent  will cover all
sports and include a range of prices and-
will cater for international visitors. 
JetSet has worked for the last ten win-
ter and summer Games and was a key
provider of  travel and hospitality pack-
ages at the Beijing Olympics,
GLOBAL REACH
Meanwhile Mike Burton (pictured in his
playing days) is a former England rugby
union international whose company
provides packages for sports events,
mainly rugby, tennis and golf.
His tie-up with Prestige has created
one of the leading sports hospitality
operations across the globe and the
company has been chosen to provide the
hospitality for the next rugby World
Cup. 
For the London Olympics the opera-
tion will provide the only on-site hospi-
tality at Olympic venues, with plush
surroundings and gourmet food on
offer for the lucky recipients of sought-
after tickets,
Prestige marketing chief Tony
Barnard told City A.M the hospitality at
the Games would be the best ever seen
at a sporting event, with a guaranteed
“wow factor”. 
The company has already received
more than 5,000 expressions of interest
in its corporate tickets which will be
sold on a first come, first served basis.
Full details of the plans have been kept
under wraps, with blueprints of the
venue to be released next month.  “The truth is these events would not
“What we have planned is absolutely
amazing — no-one could be disappoint-
LOANING TOP TALENT TO THE GAMES
SOME OF THE SPONSORS HAVE LENT OUT THEIR STARS
D
ELOITTE, one of the Olympics sponsors,
is playing a major part in making the
games in 2012 a winner by offering up
staff to play key roles in the organisation of
the event.
The auditing and consulting giant has
seconded some of its top people to help create
the best Olympics ever as have other Games
sponsors.
Lloyds, for example, has seconded more
than 100 employees and had 2,000
applications for the roles.
The Olympic website will be run with the
know-how of Deloitte’s online guru Liz
Goulding [pictured, right].  Games and this is my ideal job. As a keen
The 27-year old from Washington is on
secondment to the 2012 organising
ed with what we are offering. We are not
talking about a marquee or something
like that, our hospitality will be in a
building created especially for the
Games. It’s going to be something that
people will remember.
“The corporate hospitality market in
the UK is very mature and the expertise
that the Mike Burton-Sodexo operation
brings to the table is invaluable.
“Their experience in providing hospi-
tality for the Rugby World cup makes
them  a top player.” 
Any suggestions that the corporate
hospitality industry was depriving tick-
ets for “true sports fans” was dismissed
by Barnard.  opening ceremony, table tennis and vol-
be able to take place without corporate
ticket sales. The reality is that we have a
committee and is responsible for bringing the
Games to life online for millions of people
around the world.
A team of up to 20,  to include some
volunteers, will work round the clock to
update medal tables and provide a constant
news flow for the greatest show on earth.
Details of what the site will look like are
being kept under wraps until the launch in
spring next year, but it will be presented in at
least English and French and feature real-time
news.  She is in charge of the three main
Goulding, who was a star gymnast as a
child, said: “I am really looking forward to the
gymnast I have always watched the Olympics
and now to be involved in some way is
tiny proportion of the total number of
tickets available for the Games,” he said.
“This is the way modern sport and all
these amazing spectacles come about.
They have to be paid for.”
Applications for Olympic Games tick-
ets will be accepted up until 26
April. Thomas Cook has a range of short
stay packages available for events, start-
ing at £99. The deals include a £399
price for a three-night stay in a north
London hotel with a ticket for the men’s
football semi-final at Wembley, plus
some athletics heats.  The most expen-
sive deal on offer for Thomas Cook is
£6,499 per person and includes the
leyball competitions.  London and the UK that events such
Stephen Vaughan, managing director,
Thomas Cook, London 2012 Partnership,
amazing.
“We have learned lessons
from other Games and the
website will be as slick as
we can make it.  located in Weymouth &
Meanwhile colleague
Julie Neuhoff swapped
her job as consulting
manager to join
the Olympics organising
committe.
Olympic Villages where Usain Bolt, Jessica
Ennis, and the thousands of Olympic hopefuls
will be spending quality time off the stadium.
Julie will have to meet the needs of 16,000
athletes and team officials in Olympic mode,
CITYA.M. 9 MARCH 2011
PRESTIGE TICKETING
The company is providing the only on-site hospi-
tality at Olympic venues. Its tie-up with Mike
Burton-Sodexo means it can offer all round hos-
pitality with top quality food and drink as well as
the promise of the best seats in the house. Its tickets start at around
£4,500. For more info go to: prestigeticketing.london2012.com
THOMAS COOK
The travel firm is offering short break packages for
the London games, with shuttles from hotels to
events included in the price. The prices are wide
ranging with the most expensive package, taking
in the Olympic opening ceremony. There are a wide
range range of packages. Call 0844 800 9900.
JETSET SPORTS
A massive player in the US, the company has
been involved in global sporting events, including
the Beijing Olympics. JetSet will provide pack-
ages to bring in travellers from across North
America – and the globe – to the Games which will showcase London.
Go to Jetsetsports.com for more information
“
We are said; “London 2012 is a huge opportuni-
ty for our customers who will be able to
counting benefit from a great range of Games
Breaks to suit all budgets. We are count-
down the days ing down the days until this once in a
lifetime event begins.”
until this once TOP DRAWER
in a lifetime A London 21012 spokesman said:
“We are hosting the two biggest sport-
event begins – ing events on the planet and providing
tickets to international audiences is a
Stephen standard part of hosting an internation-
al event. The JetSet one per cent
Vaughan will cover all sports and a range of
prices and the international visitors
Thomas are an important part of tourism to
”
Cook as the Olympics and Paralympics can
provide.”
6,200 Paralympics athletes and side of things.
technical officers, as well as “However my background as a
managing 10,000 bedrooms management consultant has really helped
across the Olympic villages me in my new position as part of the Olympic
organising committee. You need to be able to
Portland, Royal Holloway work with people, listen to them, and deliver
and Stratford. what hey need.”
Her expertise as part Julie will return to her consultant position
Deloitte’s consulting team at Deloitte once the Games are over, claiming
has proved to be an extremely the Olympic experience has enriched
valuable asset in what she her professional skills in multiple ways.
considers “one of them most exciting She said: “It has given me a fantastic
challenges of my career.” insight into the operational urgency of
She said: “This is the biggest sporting business and this can only help me when I
event on the planet and it’s been a great return to Deloitte. It’s showed me how to
experience to work on the operational side of communicate effectively with people and
an organisation, as opposed to the consulting deliver according to their needs.”
CITYA.M. 9 MARCH 2011 Lifestyle | TV& Games 31

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm The Boat That Guy
Built: BBC News
8pm CHOICE Waterloo Road
9pm MasterChef
10pm BBC News
10.25pm Regional News
10.35pm The National Lottery
Wednesday Night Draws
10.45pm Film 2011 with Claudia
Winkleman: National Lottery
Update 11.25pm FILM The Killing
Fields: Drama, starring Sam
Waterston. 1984; Weatherview
1.45am Country Tracks 2.40am
Toughest Place to Be a Paramedic
3.40am The Foods That Make
Billions 4.40am-6am BBC News
6pm Eggheads: Quiz show,
hosted by Dermot Murnaghan.
6.30pm Royal Upstairs
Downstairs
7pm Escape to the Country:
A family searches for a large
property in Somerset.
8pm Great British Food Revival
9pm 23 Week Babies:
The Price of Life
10pm Have I Got Old News for
You: With guest Miranda Hart.
10.30pm Newsnight: Weather
11.20pm ICC Cricket World
Cup Highlights
12.20am Timeshift: The
Modern Age of Coach Travel
1.20am BBC News 4am-6am
BBC Learning Zone
6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.30pm ITV News 6.30pm Hollyoaks 6.25pm OK! TV
7pm Emmerdale 7pm Channel 4 News 7pm 5 News at 7
7.30pm CHOICE UEFA 7.55pm 4thought.tv 7.30pm Starlight: For the
Champions League Live: 8pm Beauty and the Beast: Children: 5 News Update
Tottenham Hotspur v Ugly Face of Prejudice 8pm Cowboy Builders:
AC Milan (Kick-off 7.45pm). 9pm Jamie’s Dream School A family from Bolton receives
10pm ITV News at Ten 10pm CHOICE help; 5 News at 9
10.30pm London News The Model Agency 9pm NCIS
10.35pm UEFA Champions 11.05pm Shameless 12.10am Music 10pm Law & Order:
League: Extra Time on 4: 4Music Favourites: Jessie J Criminal Intent WATERLOO ROAD
12.40am The Album Chart Show BBC1, 8PM
11.35pm Police, Spotlight 12.55am Mercury Prize 10.55pm Law & Order:
The truth about why Bex ran away is
Camera, Action! Sessions 1.10am Life, Death and Special Victims Unit
12.30am The Zone; Suffer Story 1.20am One Under 11.55pm Law & Order revealed, testing Tom’s recovery when
ITV News Headlines 1.45am This Is Me 1.50am Frontier 12.55am SuperCasino he is forced to deal with the
2.30am FILM Timecop: The Berlin House 2.45am Without a Trace 3.55am Your Sport 4.05am Brian consequences. With Tina O’Brien.
Decision: Sci-fi thriller sequel, 3.30am Hill Street Blues 4.20am Sewell’s Grand Tour 4.50am Nick’s
starring Jason Scott Lee. 2003. Reaper 5.10am Wogan’s Perfect Quest 5.10am Wildlife SOS
3.55am-5.30am ITV Nightscreen Recall 5.35am-6.20am Countdown 5.35am-6am House Doctor

SKY SPORTS 1 Tour Golf 12am Inside the PGA SKY LIVING 2.25am Rick & Steve: The 4.40am How the Universe
SATELLITE & CABLE

7pm Sky Sports News at Seven
7.30pm Total Rugby 8pm ICC
Cricket World Cup 10pm You’re
on Sky Sports! 11.30pm
Football’s Greatest 12am UEFA
Champions League Highlights
1am FIFA Futbol Mundial
1.30am You’re on Sky Sports!
3am UEFA Champions League
Highlights 4am-6am ICC
Cricket World Cup
SKY SPORTS 2
7pm Live UEFA Champions
League 10.15pm Football
Special 11.15pm ICC Cricket
World Cup 1.15am Junior Pro
Surfing 1.45am Trans World
Sport 2.45am Ten Pin Bowling
3.45am-4.45am Boots ’n’ All
SKY SPORTS 3
7pm European Tour7.30pm
Inside the PGA Tour 8pm Trans
World Sport 9pm European Tour
9.30pm Total Rugby 10pm Trans
World Sport 11pm Sunshine
Tour 12.30am European Tour
Weekly 1am Total Rugby
1.30am-2.30am Max Power
BRITISH EUROSPORT
7pm World Superbikes 9.15pm
Selection 9.20pm Riders Club
9.25pm Selection 9.35pm PGA
Tour Golf 10.35pm Golf Club
10.40pm Yacht Club 10.45pm
Wednesday Selection 11pm-
12.30am Cycling
ESPN
7pm ESPN Kicks: Extra 7.15pm
FIS Alpine Ski World Cup
Report 7.45pm Planet Speed
8.15pm World Rally
Championship 9.45pm ESPN
Kicks: Extra 10pm Premier
League World 10.30pm
Snowboard FIS World Cup
Magazine 11pm UFC Unleashed
12am Baseball Tonight
12.30am NBA Tonight 1am Live
NBA Basketball 3.30am-6am
Live NHL Ice Hockey
7pm Ghost Whisperer 8pm
Four Weddings US 9pm Bones
10pm Grey’s Anatomy 11pm
Criminal Minds 12am CSI:
Crime Scene Investigation
2.40am Charmed 4.20am Four
Weddings 5.10am-6am Maury
BBC THREE
7pm Don’t Tell the Bride 8pm
How to Live with Women 9pm
How Drugs Work 10pm FILM
Severance 2006. 11.30pm
Family Guy 12.15am Junior
Doctors: Your Life in Their Hands
1.15am Being Human 2.15am
American Dad! 4.30am-
5.30am Junior Doctors: Your
Life in Their Hands
E4
7pm Hollyoaks 7.30pm Friends
9pm FILM Cheaper By the
Dozen 2 2005. 10.50pm Glory
Daze 11.50pm Scrubs 12.45am
Samantha Who? 1.40am
Young, Sexy and Rich
Happiest Gay Couple in All the Works 5.30am-6am How Does
World 2.50am Reaper 3.30am That Work?
The OC 4.15am Style Her
Famous 4.35am-6am Switched DISCOVERY HOME &
HEALTH
HISTORY 7pm A Baby Story 8pm UEFA CHAMPIONS LEAGUE LIVE
7pm Heir Hunters 8pm Ax Men Hoarding: Buried Alive 9pm ITV1, 7.30PM
10pm IRT Deadliest Roads Mystery ER 10pm Hospital Tottenham Hotspur v AC Milan (Kick-
11pm Warriors 12am Ax Men Sydney 11pm The Trauma Team off 7.45pm). Coverage of the last-16
1am IRT Deadliest Roads 2am 12am Mystery ER 1am Hospital second-leg encounter at White Hart
Cities of the Underworld 3am Sydney 2am The Trauma Team Lane.
Mega Disasters 4am Warriors 3am Hoarding: Buried Alive
5am-6am Ancient Discoveries 4am Bringing Home Baby 5am-
6am A Baby Story
DISCOVERY
8pm How Do They Do It? SKY1
8.30pm How It’s Made 9pm 8pm Louie Spence’s
When Rome Ruled Egypt 10pm Showbusiness 9pm An Idiot
World’s Toughest Tribes: The Abroad 10pm Mad Dogs 11pm
lives of Atlantic fishermen. Ross Kemp: Extreme World 12am
11pm Swords: Life on the Line Drugs Wars: DEA 1am Miami
12am Bear Grylls: Born SWAT 1.50am Football Behind THE MODEL AGENCY
Survivor 1am Deadliest Catch Bars 2.40am Glenn Martin, DDS CHANNEL 4, 10PM
2am Frontline Battle Machines 3.30am Lost 4.20am Guinness With the agency at the height of show
with Mike Brewer 3am World World Records Smashed! season, conflict erupts at the office as a
War Two: The Complete History 5.10am-6am Sell Me the hectic schedule and long working hours
3.50am Extreme Engineering Answer take their toll on the staff and models.

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

QUICK CROSSWORD
   

SUDOKU KAKURO
17 17 15 3 20 15 33 
9 7 13
34 14 
45
Place the numbers from 1 to 9 in each empty cell so that each   
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 9 29
17 16
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 35 6
above or to the left of it. 6
You can only use the digits 1-9 23 8 11     
 and you must not use the
16 32
20
same digit twice in a block. 17 24 19 4
    The same digit may occur 6 10 8    
19 13
     more than once in a row or
column, but it must be in a
24 30
21

11 10
   separate block.
7 9 
45
  13 11 5


   ACROSS DOWN
1 Dealer in textiles (6) 1 Creeping low plant (4)
    
    WORDWHEEL H N
6 Blossom (5)
7 Lubricant (3)
2 Public violence (4)
3 Frugal (10)
Using only the letters in the Wordwheel, you have 8 Glossy fabric (5) 4 ___ and Herzegovina,
 ten minutes to find as many words as possible,
B A European country (6)
10 Hostelry (3)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters S 11 Wager (3) 5 Unruffled (6)
6 Course of action which
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
U E 13 Crazy (3)
14 Burnt remains (3)
is unproductive (5,5)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
T R 16 Curve (3)
9 Bladed chopping tool (3)
11 Hard ridge that forms the
QUICK CROSSWORD 5 3 2 1 9 3 7 8 17 Spring-loaded door upper part of the nose (6)
F A T A L T W E A K
8 5 4 2 4 2 1 3 SUDOKU         
fastener (5)
12 Item used to brew a
9 4 6 8 7 1 5 2          20 Entirely (3)
A I E E L
6 2 1 8 9 9 7
popular drink (6)
S L M I R A C L E         
C E L L O K E 7 1 5 3 2 6 4 1 21 Graverobber (5) 15 French word denoting
        
I N A M E G 5 7 2 1 9 22 Crossbreed (6) that a wine is dry (3)
        
A M E N
A
Y
E U R O
N O E L
E
5
1
8
2
7 9 6 4
8 1
6 8
9 1 5
WORDWHEEL          18 Excursion (4)
L S G O U D A         
T A C T F U L P D
6 9 8 5 7 8 4 9 The nine-letter word was 19 Manual worker (4)
W L E O E 2 6 9 8 1 7 2 4         
B I P E D D I N E R 3 7 5 9 2 6 3 1
WHITEBAIT         
 Sport
33
“WE WILL GIVE HIM A VERY
WARM WELCOME”
SPURS BOSS REDKNAPP WARNS MILAN
BAD BOY FLAMINI: PAGE 35

Flood, Lawes and Croft fit for England SPORT | IN BRIEF

RBS
6 NATIONS
BY FRANK DALLERES
ENGLAND manager Martin Johnson
looks set to pick Toby Flood at fly-half
and recall fit-again pair Courtney
Lawes and Tom Croft when they
resume their grand slam quest in
Sunday’s RBS 6 Nations match against
Scotland.
Flood was an injury doubt, having
suffered an achilles problem in the
win over France 11 days ago, but
Johnson last night revealed his confi-
dence in the Leicester No10’s condi-
tion by releasing potential
replacement Charlie Hodgson.
Leeds flanker Hendre Fourie was
also among the 10 players allowed to
return to their clubs, suggesting that
Leicester’s Croft could be handed his
first start of the championships.
Lawes (right), meanwhile, is back in
Johnson’s plans after the
Northampton lock, voted man of the
series for last year’s November inter-
nationals, crowned his comeback
F1 chiefs set Bahrain deadline
FORMULA ONE: Bahrain Grand Prix
organisers have been given until 1 May
from a two-month lay-off by rejoin-
ing the squad this week.
to face Scotland on Friday. “He
is desperate to get back
to decide whether they can rearrange
the race for later this year. The Gulf
Captain Lewis Moody, who and has worked very, kingdom had been due to stage the first
has missed all three of very hard and is very, event of the season this month but
England’s games in the very unfortunate to pulled out amid political unrest.
competition so far, is still get the same injury November is the most likely date.
recovering from his again.”
knee injury and is set to Other players Gill: United debts no hindrance
miss out again, released last night FOOTBALL: Manchester United chief
although Johnson left include Harlequins executive David Gill insists the club’s
the door open for him to pair Chris Robshaw £500m debts have not affected their
return in the final fixture and Joe Marler, spending power. Admitting “it would be
against Ireland. Wasps duo Tim Payne better” if they did not pay £45m inter-
“It is still possible,” said and Joe Simpson, and est a year, Gill said: “We know it's there
Johnson, who will name his team Saracens’ David Strettle. but it doesn’t impact what we do. There
has been no impact [on] our transfers.”

Wales restore Hook to fly-half

Injury rules
ROSS THE BOSS: TAYLOR HAMMERS PAKISTAN RUGBY UNION: Wales have switched
James Hook to fly-half for Saturday’s
RBS 6 Nations visit from Ireland. Fit-
again Jonathan Davies returns to the
midfield, meaning Hook moves to No10,
with Stephen Jones on the bench.

Broad out of Results

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World Cup
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BY JAMES GOLDMAN
ENGLAND’S World Cup hopes suf-
fered another seismic blow yesterday
when it was confirmed that fast
bowler Stuart Broad will miss the
rest of the tournament due to a side
strain.
The 24-year-old returned to form in
Sunday’s thrilling six-run victory
over South Africa, taking four for 15
including the decisive wickets of
Dale Steyn and Morne Morkel.
Broad missed the last three Ashes
Tests over the winter after he picked
up a similar injury problem during
the victory in Adelaide, but the
England and Wales Cricket Board
were last night keen to stress that
this injury is a fresh one.
“Scans have confirmed a signifi-
cant side strain injury,” said ECB
Peirce. “Stuart felt some discomfort
following the South Africa match
and our initial assessment indicated
a strain to his left side.
“Subsequent scans have confirmed
a significant side strain injury –
where the muscle attaches the rib.
“Any participation in the forth-
coming IPL [Indian Premier League]
will be determined according to his
rehabilitation timescale established
in due course.”
Chris Tremlett, who was taken to
the tournament as standby for the
squad, is poised to replace Broad.
Tremlett stood in for Broad to
great effect during the Ashes – taking
an impressive 17 wickets at an aver-
age of 23.35 – and also played four of
the seven one-day matches in the 6-1
series defeat against Australia prior
to the World Cup.
NEW ZEALAND batsman Ross Taylor’s extraordinary innings of 131 helped his side to a
110-run World Cup victory over Pakistan. The Kiwis looked set to post low total before
Taylor celebrated his 27th birthday by smashing 62 from the last 16 balls he faced as he
and Jacob Oram scored a world record 92 from the final four overs to reach 302-7.
Pakistan were bowled out for 192, Tim Southee taking three for 25. Picture: GETTY
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email sport@cityam.com
34 Sport CITYA.M. 9 MARCH 2011

Red card was

a joke, says
Van Persie OUTCLASSED
l Brilliant Barca end Arsenal’s European hopes again
l Wenger rages at Van Persie sending off for dissent

ARSENAL striker Robin van Persie

branded his red card a “joke” as his
side crashed out of the Champions
League against Barcelona for the sec-
ond year in a row.
Van Persie was given a second yel-
low by referee Massimo Busacca
card 11 minutes into the second-half
for time wasting, just 180 seconds
after Arsenal had restored their
aggregate advantage.
“I think the red card had a big
influence,” he said. “I think it’s a total Fabregas gifted Barca
joke – how can I hear this whistle the opener to cap a mis-
with 95,000 people?” erable homecoming
Just a second elapsed between Picture: PA
Busacca blowing his whistle and Van
Persie striking the ball, and the Dutch
international continued: “That makes
it even worse. I cannot understand scoring the decisive goals. Wenger was were on course for a huge upset at Arsenal did not manage even one.
that view from the ref. He’s been bad
all evening. We feel betrayed a bit.”
BARCELONA 3 livid at Van Persie’s second yellow card –
shown for shooting after the referee had
Camp Nou. He added: “I knew that like
the first game [in which Arsenal came
Danger loomed from the first
minute as the Catalans chased the win
blown for offside, although the striker from behind to win 2-1] we could come they needed, but the resolute Johan

BARCELONA v ARSENAL
ARSENAL
19 (10) Attempts 0 Barcelona win 4-3 on aggregate
▲
1 denied hearing a whistle – and blamed
Busacca for his side’s exit.
“We are frustrated with his decision,”
he said. “It is very difficult to under-
stand his attitude. We have many
back into the game and overall I’m con-
vinced we would have won this game.”
To make matters worse for Arsenal,
goalkeeper Wojciech Szczesny suffered
a dislocated finger and had to be
Djourou made a series of last-ditch
blocks and Almunia stood firm – until
first half stoppage time. Fabregas, fac-
ing his old team, carelessly backheeled
to Andres Iniesta and Messi flicked

0 Saves 21 FOOTBALL
regrets tonight because we didn’t replaced after 15 minutes, while cap- over Almunia and volleyed home with
BY FRANK DALLERES
5 Corners 2 expect to lose the game like that.” tain Cesc Fabregas appeared to aggra- glorious spontaneity.
FURIOUS Arsenal manager Arsene The Frenchman said officials from vate his hamstring problem. Arsenal were thrown a lifeline just
8 Offside 4 Wenger confronted referee Massimo European chiefs Uefa shared his shock If there was a bright side for the visi- after the break when Busquets headed
Busacca after seeing his 10 men at the sending off, adding: “It killed a tors, Szczesny’s stand-in Manuel into his own net, but their joy quickly
724 Passes 199 played off the pitch and dumped out promising, fantastic football match. Almunia played superbly to keep the turned to despair after Van Persie was
69% Possession 31% of the Champions League in What for? If it’s a bad tackle or a second scoreline respectable, while teenage sent off and Barca began to run riot.
Barcelona. bookable offence okay, but frankly it is midfielder Jack Wilshere starred Xavi finished a slick move by firing
8 Fouls 19 Masterful Barca utterly dominated embarrassing.” among stellar company. past Almunia via a deflection from
0 Yellow cards 5 from start to finish but only delivered Arsenal had just drawn level on the There was no denying the superiority Bacary Sagna, and Messi, scorer of four
the killer blows after Robin van Persie night, through a Sergio Busquets own of the Spanish champions, however, goals when Barca eliminated Wenger’s
0 Red cards 1 had been sent off – Xavi and Lionel goal, when Van Persie was dismissed, who enjoyed 69 per cent of possession men last season, sealed victory from
Messi, with his second of the night, and Wenger was adamant his team and mustered 19 attempts at goal. the penalty spot.
CITYA.M. 9 MARCH 2011 Sport 35

KEY MOMENTS | BARCA BATTER GUNNERS

45 mins: After somehow managing to keep Barca at bay,

Arsenal were undone by an error from their captain. A sui-
cidal backheel from Cesc Fabregas presented Andres
Iniesta with possession just outside the penalty area. Bale is expecetd to be fit but won’t be risked by Redknapp Picture: GETTY
Fabregas’ Spain international teammate found Lionel Messi,
who improvised brilliantly by flicking the ball over Manuel
Almunia and smashing home on the volley.
Expect fiery welcome,
Redknapp tells Flamini
Arsenal player and having made a bad
TOTTENHAM tackle in the first leg.”
Van der Vaart, who has been out
since the first leg win, has been passed
AC MILAN fit to play, but Bale, who made his
comeback as a substitute on Sunday,
53 mins: A rare, almost isolated foray into Barca territory remains a slight doubt.
▲

saw Arsenal win a corner. Samir Nasri swung the ball in

from the left, Abou Diaby rose at the near post and, in keep-
ing with the rest of his performance, missed it. Having been
put off by the Frenchman’s attempt, the ball landed almost
apologetically on the head of Sergio Busquets and dropped
into the corner of the net to restore Arsenal’s advantage.
71 mins: The outstanding Xavi leveled the tie in the 69th
minute, finishing off another wonderfully intricate move
which involved Iniesta and David Villa. And 90 seconds
later Messi landed the killer blow. Laurent Koscielny, who
had been lucky not to concede a penalty in the first leg,
FOOTBALL
BY JAMES GOLDMAN
TOTTENHAM manager Harry
Redknapp has warned ex-Arsenal mid-
fielder Mathieu Flamini to expect a
white-hot reception tonight following
his horrendous tackle on Vedran
Corluka three weeks ago.
Spurs, who are likely to be able to
call upon the services of star midfield-
ers Gareth Bale and Rafael van dear
Vaart, hold a one-goal advantage after
a fractious game at the San Siro.
The chief aggravator that night,
Milan captain Gennaro Gattuso,
earned himself a four-game ban for
headbutting Tottenham coach Joe
Jordan, but Flamini escaped retrospec-
tive punishment from Uefa despite his
dreadful two-footed lunge on Corluka.
“They will give him a very warm
welcome,” Redknapp said. “I’m sure he
expects that coming here as an ex-
Redknapp said: “I would love to
start him if he is fit. He is a fantastic
player for but if he’s not quite right
then I wouldn’t want to take a chance
on him.”
Tottenham to bank
£50m from kit deal
TOTTENHAM have signed a kit sup-
plier deal worth up to £50m with
Under Armour. The five-year agree-
ment represents the American com-
pany’s largest European team
sponsorship and is thought be
worth up to £10m a year to the club.
Under Armour currently supply the
Wales national rugby team but this
is their first in the Premier League.

Why wing wonder Bale

was penalised for a trip on Pedro and Messi did the rest.

will have Milan terrified

winger will be upfield with the ball at
his feet within a couple of seconds.
Elsewhere I think Redknapp will
stick with the Peter Crouch-Rafael
van der Vaart pairing in attack that
has worked so well this season, with
Wilson Palacios complementing Luka
Modric in midfield.
TALKING TACTICS
TREVOR STEVEN Gomes

SPORT
I
F Gareth Bale does return to the
Tottenham side tonight, as
expected, it will cause great con- Dawson Gallas

CRICKET cern in the AC Milan camp.

Bale is such a threat wide on the
left with his ability to run with the
Corluka Assou-
Ekotto

ball at defences, and if he can get in Palacios Modric

ENGLAND WORLD CUP one-on-one situations with Milan’s
right-back then the visitors will be in Lennon Bale
BLOW AS BROAD IS trouble.
Whenever Spurs win possession

SENT HOME back in the middle of their own half

they will look to release Bale –
Van der
Vaart Crouch

PAGE 33 because they know the fleet-footed

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