Cityam 2011-10-05

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FTSE 100 4,944.44 -131.06 DOW 10,808.71 +153.41 NASDAQ 2,404.82 +68.99 /$ 1.54 unc / 1.16 -0.01 /$ 1.33 +0.01
Industry to
get carbon
tax breaks
THE CHANCELLOR is set to unveil a
package of tax relief for energy-inten-
sive firms in his autumn statement,
after he was criticised for hitting
industry with a 3.2bn carbon stealth
tax in his last Budget.
City A.M. understands the package
will help those firms that use large
amounts of energy, such as cement,
aluminium and steel makers. A
Treasury source confirmed the chan-
cellor was working on a package for
energy-intensive industries.
John Cridland, the director-general
of the CBI, told City A.M. he had been in
discussions with the Treasury about
exempting some energy-intensive
firms from the carbon floor price and
was hopeful the chancellor would
find a resolution.
If youre going to do a carbon floor
price in the UK then you have to be
sensitive who you target. Some busi-
ness cant bear the cost and those
firms should have been exempted
when the chancellor announced a car-
bon floor price in his Budget. Its still
not too late to exempt them.
Asked if he thought the chancellor
was looking at exemptions for energy
intensive firms, Cridland said: Yes I
do. I have been talking to the Treasury
about energy-intensive industries at
the carbon floor price and I am hope-
ful we will see a resolution in the
autumn statement.
The chancellor shocked industry
when he announced a carbon floor
price in his Budget last March, which
will raise 3.2bn for the exchequer by
2016.
Worries over Franco-Belgian bank Dexia helped fuel the widespread plunge in markets yesterday, though the US saw a late rally
THE EUROZONES escalating financial
crisis hammered European stocks yes-
terday, with markets also dampened
by growing concerns over the fragility
of the global recovery.
The bad news was compounded
after hours as Moodys downgraded
Italy by three notches, from Aa2 to A2.
The prospect of a Greek default was
heightened by an apparent delay in
the struggling peripheral states next
package of aid.
Eurozone authorities are reviewing
the level of losses that private banks
should take on Greek debt, yet finance
minister Evangelos Venizelos last
night insisted that its finances could
survive until mid-November.
Nonetheless, the FTSE slumped 2.6
per cent to its lowest close since July
2010. In France the CAC closed down
2.6 per cent; the German DAX shed
nearly three per cent; the Euro Stoxx
50 ended 2.2 per cent down.
Banks took some of the heaviest
hits, with Franco-Belgian financial
group Dexia coming into sharp focus
on worries about its high exposure to
Greece. Its shares fell 22.5 per cent.
Barclays shed 7.6 per cent yesterday,
while Lloyds Banking Group and Royal
Bank of Scotland also took knocks.
The Eurozone crisis is now so seri-
ous it will plunge the region into reces-
sion by the end of the year, analysts at
SHARES SLUMP AS
EURO FEARS GROW
BY JULIAN HARRIS AND ALISON LOCK
WORLD ECONOMY
www.cityam.com Issue 1,482 Wednesday 5 October 2011 FREE

LONDONS
BEST MEAL
FRENCH LAUNDRY
AT HARRODS
PROVES EPIC P31
APPLE UNVEILS ITS NEW
AND IMPROVED iPHONE...
BUT DISAPPOINTS FAN BOYS P5
BUSINESS WITH PERSONALITY
both Goldman Sachs and credit rating
agency Standard & Poors warned.
Goldman is now predicting a reces-
sion in the short term and stagnation
next year for Europe, and warned
that the US economy will also suffer
from the crisis.
S&Ps analysts said they still do not
expect a genuine double dip to occur
in the Eurozone, but added that west-
ern Europe is vulnerable to a slide
back to economic contraction.
Goldman and S&P said they see the
US as having a 40 per cent chance of
slipping back into recession, despite
the Federal Reserves efforts to restart
the economy. Goldman expects US
GDP growth of 1.4 per cent next year.
Credit default swaps (CDS) were hit
for both banks and sovereigns yester-
day, as fears escalated. German five-
year CDS rose to 121 basis points while
Belgiums five-year CDS gained 14 bps
to 286 bps, nearly a record high.
US stocks flirted with a bear market
in early trading, yet a late rally saw the
Dow Jones spike by 3.5 per cent, as bar-
gain-hunters snapped up cheap shares
amid the turbulence. The VIX volatility
measure hit a two-month intraday
high of 46.88 yesterday.
Earlier in the day Federal Reserve
chief Ben Bernanke said it was pre-
pared to take further action as appro-
priate to promote stronger economic
recovery. MORE: P2, P3, P4, P26
Certified Distribution
01/08/11 till 28/08/11 is 92,745
ANALYSIS l DAX
28Sept 29Sept 30Sept 3Oct 4Oct
5,800
5,600
5,400
5,200
5,216.71
4 Oct
ANALYSIS l FTSE
5,400
5,200
5,000
4,944.44
4 Oct
BY DAVID CROW
EXCLUSIVE
News
2 CITYA.M. 5 OCTOBER 2011
LOOKING at the chaos in the markets
and the Eurozone yesterday, it would
be tempting to claim that the sover-
eign debt crisis is nearing its endgame.
But that would be the wrong call to
make. The crisis is intensifying, obvi-
ously, but political incompetence in
the European Union, as well as its
faulty political institutions, means
that it is going to drag on and on.
There will be no quick resolution,
merely a prolonged, horribly slow
death.
Despite Greeces inability to meet
any of its deficit targets or actually
introduce promised reforms, the
Eurozone insists that the Athens gov-
ernment wont technically default. But
EU finance ministers have rightly and
belatedly decided to reconsider the
absurdly low level of the haircut that
private bondholders are going to face.
It is currently just 21 per cent. A figure
of 50 per cent is being discussed but
even that would still be too low.
Something closer to 70 per cent would
make more sense.
But when that eventually happens,
the pressure will then become
immense for financial institutions to
mark down substantially other
Eurozone debt held in their available
for sale portfolios. Those who dismiss
the credit default swap (CDS) markets
which suggest massively higher risks
of default for many countries, especial-
ly in the Club Med as meaningless
because of their illiquidity have a par-
tial point but only a fool would
entirely ignore such a key financial
indicator, especially when it is accom-
panied by rocketing bond yields.
Belgiums basket case bank Dexias
EDITORS LETTER
ALLISTER HEATH
7
th
Floor, Centurion House,
24 Monument Street, London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Jo Simpson
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
Distribution helpline
If you have any comments about the distribution
of City A.M. Please ring 0207 015 1230, or email
distribution@cityam.com
biggest problem is that it has a large
exposure to dodgy sovereign debt;
writing it down properly will prove to
be a bitter blow (hilariously, this wasn't
detected by the Eurozones stress tests).
Many French banks have also further
to go in terms of writing down Greek
debt (though Socit Gnrale has very
little exposure left so would be fine on
that front). But the entire financial sys-
tem and that includes insurers and
pensions funds would be in trouble if
they have to start writing down sub-
stantially the value of their Italian and
Spanish debt.
But the Eurozones woes are not just
due to idiotic, profligate governments
or to the single currencys internal
contradictions. The massive, almost
nuclear impact of the capital and espe-
cially liquidity provisions of Basel III
are a crucial component of the story.
While the reforms were meant to be
phased in over time, worried investors
are forcing Eurozone banks to speed
up their implementation. Some banks
are contracting their balance sheets;
others are withdrawing credit lines; all
are reducing their loans to other
banks (which are much costlier under
Basel III) and all are desperately scram-
bling to reduce their dependence on
wholesale markets.
Meanwhile, wealth destruction will
continue apace. Equity investors are
being trashed everywhere, commodi-
ties are down (even gold is way off its
recent peaks, partly because of margin
selling), real house prices are down,
emerging markets are suffering, infla-
tion is slashing savers cash (a problem
which is bound to worsen if and when
the Bank of England launches another
round of quantitative easing, possibly
as early as this week) and only a few
supposedly safe (in reality bubble-like)
bond markets are generating good but
entirely unsustainable returns for
investors. The last thing everybody
needs is a long, drawn-out crisis in the
Eurozone, overshadowing the next 18
months at least.
Tragically, however, that is exactly
what we are going to get.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Crisis across the
Eurozone is just
getting started
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STOCK markets officially dipped into
bear market territory yesterday, after
US stocks tumbled during morning
trading.
The S&P 500 traded as low 1,074.77
at the start of yesterdays session, more
than 23 per cent down on its 52-week
high of 14,330. It later recovered to
close at 1,123.95.
A bear market is usually defined
as one that has fallen 20 per cent or
more over a period of at least two
months.
The FTSE 100 is now just 200 points
away from falling into the same terri-
tory: it closed 2.6 per cent down at a 15-
month low of 4,944.44 yesterday over
1,000 points down from a high of 6,106
in the last year.
The Dow Jones Industrial Average is
also only a couple of hundred points
away from entering bear market terri-
tory, having lost some 2,500 points
since its summer high of 12,876.
Investors are fleeing equities as
Europe goes to the brink of disaster
with its debt crisis.
On Monday, Eurozone leaders again
failed to reach a resolution on releas-
ing Greeces next tranche of bailout
money, without which the country
will go bankrupt in two weeks.
S&P 500 index
dives into bear
market territory
MARKETS
MORGAN Stanley is considering rais-

ing $5bn (3.25bn) from a Japanese
bond sale as concern grows over its
exposure to the Eurozone.
Yesterday it filed a shelf registration
at Japans finance ministry, which
would allow it to sell bonds to
investors. Sources indicated Morgan
Stanley could launch a uridashi bond
but an issue would not take place
immediately.
The bank, which took a US Federal
Reserve loan at the height of the 2008
crisis, has recently faced rumours
about its investments in French banks.
However it has a net exposure of zero,
City A.M. understands.
Morgan Stanley received a boost
from one major investor yesterday
when Mitsubishi UFJ Financial Group
gave its backing to the bank.
In a statement it said: In response
to recent market volatility MUFG wish-
es to reiterate that we are firmly com-
mitted to our long-term strategic
alliance with Morgan Stanley. The spe-
cial relationship we have formed
remains core to our global business
strategy.
Shares in Morgan Stanley closed up
12 per cent last night, but its shares are
still off 48.5 per cent this year.
Separately Greg Fleming, the head
of its wealth management arm, told a
Reuters summit that achieving a 20
per cent pre-tax operating margin
depends mainly on market conditions.
The brokerage aims to achieve mar-
gins in the mid-teens over the next six
to eight quarters, he said.
Morgan Stanley
mulls bond issue
amid turbulence
BANKING
DEUTSCHE Bank yesterday blamed

the European debt crisis for the scrap-
ping of its annual profit targets as
struggling UBS said it would stay in
the black in the third quarter despite
its rogue trading losses.
Shares in Deutsche Bank fell nearly
four per cent after it said its 10bn
(8.62bn) pre-tax profit target is no
longer within reach.
Chief executive Josef
Ackermann (right) said: The
intensifying European sovereign
debt crisis led to sustained uncer-
tainties among market partici-
pants in the third quarter and
thus to significantly
reduced volumes and
revenues.
Bank shares
have seen major
falls in recent
weeks as fears
grow over slow-
ing markets.
Deutsche Bank,
which did not give a
revised profit figure, was
hit especially hard in its
corporate banking and
securities division in the
third quarter.
Ackermann said, however, the
bank had boosted liquidity buffers to
more than 180bn from 150bn previ-
ously and did not face a funding
squeeze.
Deutsche Bank had absolutely no
refinancing problems, neither in
2008 nor in 2011.
It will also take impairment
charges on Greek sovereign debt of
about 250m and cut about 500 jobs,
mainly outside its home mar-
ket. Shares closed down 3.98
per cent at 24.72p.
Meanwhile UBS said gains
on credit derivatives would
help it record a modest third-
quarter net profit and said
there had not been a
mass pulling of
funds since the dis-
covery of Kweku
Adobolis alleged
$2.3bn fraud and
the resignation of
chief exec Oswald
Gruebel.
It came as
UniCredit chief
executive Federico
Ghizzoni said the
bank, Italys largest by
assets, has its funding
needs covered.
Deutsche Bank
blown off course
by euro troubles
BANKING
ANALYSIS l A turbulent day in the markets

2007 2008 2009
6,724
5,109
3,493
ANALYSIS l A turbulent day in the markets
BIGGEST FTSE 100 LOSERS
EUROPEAN BANKS
Socit Gnrale -4.9%
Deutsche Bank -4.31%
Raiffeisen Bank -4.41%
Brent crude
oil futures fall
1.9% to
$99.79
a barrel
Eurostoxx
50 falls 2.21
per cent
2091.09
Hargreaves Lansdown -7.88%
Barclays -7.62%
IMI -7.15%
Weir Group -7.03%
GKN -6.55%
TASTE FOR SCOTS ALES LIFTS WELLS
AND YOUNGS INTO TOP THREE
Two of Scotlands best-loved ales will
be marketed to English beer drinkers
and further afield after the
Bedford brewer Wells and Youngs
swallowed the McEwans and
Youngers brands yesterday in an esti-
mated 20m deal. The purchase from
Heineken UK propels the firm into
the top three premium ale brewers.
WHAT THE OTHER PAPERS
SAY THIS MORNING
BLACKROCK JOINS CALL FOR ACTION
ON ETFS
The worlds leading provider of
exchange traded funds, BlackRock,
has backed calls for tougher safe-
guards for the investment products
to deflect the rising tide of regulatory
concerns about the systemic risk
posed by the fast-growing market.
The firm has called for higher stan-
dards of disclosure.
FTSE 100
News
BELGIAN lender Dexia lost a fifth of
its market cap yesterday as France
and Belgium said that they would
take all necessary measures to
stop the bank from collapsing.
It is not clear what that means
for shareholders, but Luxembourg
finance minister Luc Frieden yester-
day insisted that the banks sub-
sidiary in that country is sound and
will not be nationalised.
Investors are discussing the possi-
bility that a joint government
effort could split the lender into a
good and bad bank and wind
down the latter. The good/bad split
is the key plank of most resolution
plans that aim to wind up a failing
bank, but markets expect Dexia to
be saved rather than wound up.
If it is recapitalised, Dexia will be
the first Eurozone bank to be bailed
out due to its exposure to sovereign
debt.
Yesterday Dexia, along with BNP
Paribas and Socit Gnrale, faced
calls to write down their holdings
of Greek debt further than the 21
per cent hit they have already
taken.
Many other lenders have instead
assumed a 50 per cent haircut on
their Greek bonds. Bloomberg has
estimated that a similar write-
down by the three banks would
generate a 3bn loss between them.
Dexia finally admitted that it has
sought help from government on
Monday night after its shares
closed down 8.5 per cent. Moodys
had warned that it could slash the
banks credit rating due to its
increasing reliance on short-term
funding, which is freezing up
among Eurozone banks.
Dexia has been in the process of
restructuring since being bailed
out to the tune of 6.4bn in 2008
but said that the size of the non-
core portfolio it is trying to sell has
weighed on its balance sheet due to
current low valuations.
UK chancellor George Osborne
last night said that Eurozone gov-
ernments have not done enough
to convince markets that the crisis
will be resolved.
Dexia has got itself into trouble
and there is a feedback loop
between weak banks, weak sover-
eigns and whether those sovereigns
can stand behind the banks,
Osborne said.
ANALYSIS l Dexia SA

1.50
1.40
1.30
1.20
1.10
1.10
1.00
0.90
1.01
4 Oct
France and Belgium in
joint effort to prevent
the collapse of Dexia
EUROZONE CRISIS
DEXIA now looks certain to be the first big

casualty of this years bank funding freeze.
Already part-owned by three govern-
ments due to a prior bailout in 2008, the
bank now faces the prospect of being fur-
ther nationalised, broken up and restruc-
tured. But for all the talk of solving the
too big to fail problem in the four years
since the last crisis, the bank resolution
procedures that should keep taxpayers off
the hook are nowhere near ready.
Eurocrats are not talking about how to
wind up teetering lenders, but how and
when to get more public money into them.
This week, JP Morgan analysts revised up
their estimate for exactly how much
should be pumped into banks: they now
reckon European governments must
throw 180-230bn into the hole left by an
impending Greek default.
Banks need to seize the initiative. The
chances of a disastrous disorderly default
in which Athens simply runs out of money
are rising. But rather than waiting for
politicians to organise private sector
involvement, lenders must use their com-
mon sense and take a realistic haircut, as
soon as possible. Sticking to the 21 per cent
write-down agreed by euro leaders, as
Dexia and Frances two biggest banks are
doing, only exacerbates uncertainty rather
than stemming panic.
Politicians have shown they cannot be
trusted to manage Greeces bankruptcy.
Banks must make their own plans.
BOTTOMLINE
Analysis by Juliet Samuel
Banks must show
realism over crisis
2010 2011
FTSE closed
down 2.58
per cent
4944.44
THEY could not have timed it any bet-
ter or should that be any worse?
Some of the biggest names in bank-
ing came together in London yester-
day as industry shares fell over fears
politicians are failing to tackle the
Eurozone crisis.
Bob Diamond, chief executive of
Barclays, told the Bank of America
Merrill Lynch conference that
shares in the British lender are
undervalued and vowed it
would meet targets for return
on equity.
I recognise that our stock
trades at a significant discount
to our tangible equity. I do not
believe that that is justified.
He said Barclays will hit
its target of a 13 per cent
return on equity by 2013
despite new regulation
and slowing economic
growth.
Diamond also told the
audience, which
included the chief exec-
utives of Deutsche
Bank, Socit Gnrale,
Royal Bank of Scotland
and Lloyds Banking
Group, that Barclays was
in a good position to withstand the
risks posed by the Eurozone debt cri-
sis, with 44bn of its exposure, the
majority in retail banking and much
of that in first homes with low loan-
to-value ratios in Spain, Italy and
Portugal.
Antnio Horta-Osrio, chief execu-
tive of Lloyds, indicated the bank
would improve its capital and fund-
ing positions as he contrasted the
credit and banking crisis of 2008
with the current sovereign and
political crisis in the Eurozone.
In a presentation he said
Lloyds, which is 41 per cent tax-
payer-owned, would continue
to strengthen our balance sheet
and liquidity position.
RBS chief executive
Stephen Hester said the
bank was reviewing its
investor return targets
amid the Eurozone cri-
sis. One of the slides in
his presentation stated
return target under
review in light of chal-
lenges.
RBS also said it is like-
ly to raise its targeted
core Tier 1 capital ratio
due to the impact of
Basel III rules and the
ICB report.
Share price is
undervalued,
says Diamond
BY PETER EDWARDS
BANKING
FEDERAL Reserve chairman Ben

Bernanke accused Chinas currency
interventions of harming the global
recovery last night, just hours after
Chinese authorities hit out at the US
for stoking the currency war.
An angry China warned
Washington that passage of a bill
aimed at forcing Beijing to let its cur-
rency rise could lead to a trade war
between the worlds top two
economies.
Chinas central bank and the min-
istries of commerce and foreign affairs
accused Washington of politicising
currency issues and putting the global
economy at risk after US senators
voted on Monday to start a week of
debate on the bill.
Yet Bernanke fanned the flames
with his comments. I do think that
Chinas currency policy ... has been to
some extent preventing global adjust-
ment, he said. A more balanced
growth path could be achieved if there
was greater flexibility in currencies.
Bernanke: China affecting global
recovery by weighing down yuan
WORLD ECONOMY
EUROPES bank regulator yesterday

admitted its much-lauded stress
tests of the regions banks this year
had failed to stop another crisis, as
Franco-Belgian lender Dexia came
close to collapse less than 12 weeks
after getting a clean bill of health
from the European Banking
Authority.
City critics blasted the test results
published in July, which found 90
per cent of European banks were
able to survive another crisis, but did
not use a scenario in which govern-
ments defaulted on their debt.
We have to acknowledge we did
not manage to reassure markets on
the solidity of European banks, espe-
cially due to the treatment of sover-
eign exposures, EBA chairman
Andrea Enria told an EU parliamen-
tary committee.
Syed Kamall, a Conservative MEP
for London, said the EBA had wildly
underestimated sovereign debt risks.
While the markets were warning
of a 50 per cent haircut for Greek
debt, it was wrong of the EBA to only
assume a write down of 15 per cent,
he told City A.M.
The EBA may need to go back to
the drawing board and take a more
realistic view of banks exposure to
sovereign debt if we are to have any
real idea on the health of banks
across the European Union.
Regulator admits bank stress
tests failed on sovereign debt
BY ALISON LOCK
REGULATION
News
EBA chairman
Andrea Enria
Picture:
REUTERS
"We have to acknowledge
we did not manage to reas-
sure markets on the solidity
of European banks, especially
due to the treatment of
sovereign exposures"
EBA chairman Andrea Enria
yesterday
"Dexias strong capital base
would enable it to weather
the set of assumptions of the
EBA stress tests...even if
these assumptions look
very conservative, notably
for sovereigns"
Dexia's feedback from the
EBA in July
News
APPLE yesterday unveiled an update to
its world-beating smartphone but dis-
appointed fans by failing to launch the
anticipated iPhone 5.
The markets sighed in unison with
the fan-boys, with Apple stock falling
as much as five per cent yesterday,
before recovering most of the lost
ground.
Tim Cook made his inaugural prod-
uct launch as full-time chief executive
of the company, ten years on from
and in the same room as the launch
of Apples first generation iPod.
The iPhone 4S is faster than its pred-
ecessor, featuring a dual core A5
processor designed by Cambridge-
based ARM, improved battery life and
a more powerful camera.
Its biggest draw, though, is the new
Siri voice recognition feature, which
finally appears to have succeeded
where many other companies have
failed. During the demonstration, an
Apple executive wrote text messages,
asked for the spelling of words and
scheduled meetings, all through con-
versational voice prompts.
However, the 4S chassis remains the
same as the iPhone 4 Apples most
popular handset to date dashing the
hopes of fans dreaming of a complete
overhaul.
And anybody hoping the iPhone 5
will be along soon may be disappoint-
ed there was a wait of a year between
the iPhone 3GS and the 4.
Cook also said Apples grasp on the
personal computing market is tighten-
ing, with sales of its Mac range grow-
ing more than 20 per cent quicker
than its rivals and now accounting for
23 per cent of the market.
He also said 18bn apps have been
downloaded from Apples App Store,
with the number growing at a rate of
1bn a month.
The iPhone 4S will be available for
pre-order on Friday and ship a week
later.
Apple shares
fall after new
iPhone launch
CHANCELLOR George Osborne has
backed down on one of his key
demands that all derivatives trading
be immediately covered by new EU
rules but won some smaller conces-
sions on controlling a market once
described as the Wild West.
For Osborne, who interrupted his
attendance at the Conservative
partys annual conference to make
the trip to persuade EU finance min-
ister to change the draft law, the deal
allowed him to claim a partial victory.
He won concessions, including one
that waters down the power of
European regulators to sideline
British authorities.
In another concession, the
European Commission, which writes
the first draft of laws for the 27-coun-
try EU, also pledged to reflect
Britains concerns in a new raft of
market rules.
UK compromises
on derivatives bill
CONTROVERSIAL trader Guillaume
Rambourg is planning to launch a
hedge fund in Paris but without his
former business partner Roger Guy.
Rambourg, who earlier this year
was cleared by British regulators of
breaking internal trading rules at
Gartmore, will name the new fund
Verrazzano, after the Verrazano-
Narrows bridge that connects the
New York boroughs of Staten Island
and Brooklyn.
He has applied for an operating
licence in France but, if successful, he
will have to build the fund without
Guy, with whom he ran Gartmores
5.5bn hedge fund business.
In March last year Rambourg was
suspended from Gartmore for
allegedly directing trades to favoured
brokers. It sent the fund manager
into a tailspin, with many of its top
performers leaving, clients withdraw-
ing more than 1bn and its share
price plunging.
Rambourg resigned in July last year
to concentrate on the FSA investiga-
tion and four months later Guy sensa-
tionally quit as well.
Rambourg was cleared by the
Financial Services Authority in March
but by then Gartmore had been sold
to Henderson for a knock-down price
of 335m.
Star trader Rambourg set to
launch Paris fund without Guy
CAPITAL MARKETS
Tim Cook launched the new iPhone to a muted reaction yesterday Picture: Reuters
BY HARRY BANKS
REGULATION
BY STEVE DINNEEN
TECHNOLOGY
NEW YORKS attorney general said

yesterday he has filed a lawsuit
against Bank of New York Mellon for
defrauding clients in foreign curren-
cy exchange transactions.
Eric Schneiderman said BNY
Mellon misrepresented to customers
the rates for foreign currency trans-
actions over a 10-year period. He said
he is seeking a nationwide recovery
of nearly $2bn.
New York is the latest state to
bring claims against BNY Mellon,
which has been battling allegations
of forex overcharging for months.
New York brings
BNY Mellon suit
BANKING
DAVID Cameron will today set the

stage for a long-haul recovery that
might not materialise before the
next election, as he tries to find rea-
sons for optimism amid a gathering
economic storm.
Speaking on the last day of his
partys conference in Manchester,
the Prime Minister will attempt to
break a cycle of gloom that he is
worried could become self-fulfill-
ing.
Right now we need to be ener-
gised, not paralysed by gloom and
fear, he will say. You hear pes-
simism about our economic future,
our social problems, our political
system... that our best days are
behind us... Im here to tell you that
it isnt true.
But he will also admit that the
economic crisis is far worse than
the Tories had thought when they
came into government last year and
that Britains recovery will take a
long time.
People want to know why the
good times are so long coming. The
answer is straightforward but
uncomfortable. This was no normal
recession, he is expected to say.
In a sign that the government is
worried that any positive effects of
its policies will not be felt by the
public before 2015, Cameron will
suggest that the coalition is laying
the foundations for growth. Its
like building a house. The most
important part is the part you cant
see that foundations that make it
stable.
The Prime Minister will also sig-
nal that the government plans to
confront those vested interests
that stand in its way, such as unions
and companies that are not provid-
ing apprenticeships.
FORUM: P25
Cameron will
warn of long
haul recovery
News
NEWS | IN BRIEF
More investment for London
Boris Johnson, the London Mayor, yes-
terday called on the government to
continue investing in the capital, which
he said was the "locomotive" for the
recovery in the UK. During his speech
to the Tory conference, Johnson argued
that other parts of the country such
as Manchester, where the
Conservatives are meeting relied on
London to ensure their economic suc-
cess. He warned the coalition not to cut
the city's transport budget for short-
term political gain.
Prisoners must be put to work
The government will put more prison-
ers to work in an attempt to rehabili-
tate a "growing feral underclass"
blamed for the riots that swept
through England two months ago, jus-
tice secretary Ken Clarke said yester-
day. Clarke won backing for his plan
from a group of business executives led
by Sir Richard Branson, chairman of
travel and entertainment company
Virgin Group. I want to see hard work
flourishing in every single jail in the
UK, Clarke said.
Lansley defends NHS reforms
Health secretary Andrew Lansley yes-
terday attempted to reassure critics of
planned reforms to the National Health
Service, promising they would mean
no decision about me without me for
UK patients. Lansley said Labour would
have cut 30bn by 2015, whereas the
Tories will be putting in 12bn. "While I
am secretary of state, the NHS will
never be fragmented, privatised or
undermined," he insisted.
David Cameron is looking for optimism amid economic gloom Picture: REUTERS
CONFERENCE WHISPERS
The cat(s) that got the cream
Cats abound at this years Tory confer-
ence.
First Theresa May, the home secretary,
used her speech to claim that a convicted
Bolivian illegal immigrant had been
allowed to stay in Britain because he
owned a British pet cat.
The delegates lapped up this tale of
human rights madness, but was it true?
Ken Clarke, the uber-liberal justice secre-
tary, thought not, and was happy to put
his money where his mouth is; he chal-
lenged May to a bet.
The Tory leadership tried to swing
behind May, with aides giving hacks the
"fe-line" to take. For a while, it seemed as
though Clarke was back in his kennel. But
not for long.
Eventually, it transpired the man had
been allowed to remain in the UK because
he was in a long-term relationship (which
entitled him to stay).
Because the pair weren't married, the
cat was provided along with a host of
other things as proof the pair were
actually living together.
Elsewhere, one Tory wag was doing the
rounds telling a new joke about the
Liberal Democrats. The Liberals used to
shoot your dog, but now they steal your
cat, he said in reference to the Lib Dem
MP's wife who stole his lover's cat. So
who was the joker? City A.M.'s moles say
it was a very senior Tory indeed.
An enduring marriage
The Citys major donors were out in force
at the Treasurers party on Monday night:
Arbuthnot Securities chairman and CEO
Henry Angest, Cavendish senior partner
Howard Lee, and Christopher Moran, the
entrepreneur currently restoring Sir
Thomas Mores former home Crosby
House back to its Tudor glory. Hosted by
co-treasurers Sir Stanley Fink and Peter
Cruddas, the reception gave Cameron a
chance to appeal to donors to build up
funds to help the Tories secure a clear
overall majority in 2015, before rushing
off to drinks with the South East
Conservatives.
Here, the guest speaker was London
Mayor Boris Johnson, whom Cameron
greeted with a huge hug and a firm arm
clasp, to cheers from the crowd. The
last time we gripped each other as
tightly as this, people thought this was
the first civil partnership in the
Conservative Party, he joked.
BY JULIET SAMUEL IN MANCHESTER
CONSERVATIVE
CONFERENCE
AN EU-WIDE financial transactions
tax could be introduced as a VAT
measure, avoiding the UKs veto on
taxation, according to Conservative
MEP Dr Kay Swinburne.
She is reported to have told regula-
tors at the Conservative party confer-
ence yesterday that MEPs, led by
European tax commissioner Algirdas
Semeta, had already started work
on the proposals. That could see the
measures passed on a majority vote.
The tax would be devastating for
London, according to City of London
policy chairman Stuart Fraser. This
is a tax on London up to 62 per
cent of its revenues will come from
the UK. he said. The Commissions
own impact study shows it would
cost more than it would raise.
Semetas spokesman David Boublil
strongly denies Swinburnes claims.
We have proposed the tax at an
EU level and it would require unani-
mous support to be implemented,
Boublil told City A.M. If we cannot
get every country to agree, those
who do want to implement the tax
could choose, independently of the
Commission, to put the tax in place
themselves.
We have tried to address the UKs
concerns by lowering the rate, for
example but the UK could not be
forced to implement the tax.
MEP: EU may
force City tax
BY TIM WALLACE
EU ECONOMY
A NEW group of Conservative MPs

launched last night to promote free
enterprise and counter the widespread
belief that the financial crisis was
caused by too little regulation.
The 22-strong group, put together
on the initiative of Elizabeth Truss
MP, aims to make the case for eco-
nomic freedom.
Free enterprise has got a bad
name it is less popular in Britain
than in countries like China,
Germany and the US, Truss told City
A.M. We need to challenge that.
There is a view that you cannot be
both modern and free market at
the same time. But if you take the
example of child care, the last govern-
ment increased the regulation of
child-minders halving their number
and doubling the cost of child care.
Deregulation would be good for
everyone involved.
Though most of the group come
from the 2010 parliamentary intake,
senior backbencher Andrew Tyrie has
also joined.
The chairman of the Treasury
select committee criticised the gov-
ernment over the weekend, saying
that a longer-term growth strategy
would improve the chances of success
in other areas, like the big society.
22 Tory MPs form group to
fight anti-enterprise culture
BY TIM WALLACE
POLITICS
News
Tory MEP Kay Swinburne fears a transaction tax may be forced on the UK. Picture: REX
Should the UK hold a referendum
on staying in the European Union?
In association with
PoliticsHome.com
Apply to join today at
www.cityam.com/panel
At the Tory Party conference yester-
day, Prime Minister David Cameron
appeared to completely dismiss the
idea of an in-out referendum on the
UKs role in the European Union.
Cameron said: I don't think most
people in the country want that choice
between in or out.
But what do you think? This week
our readers panel, in association with
PoliticsHome.com, is asking for your
views on an EU referendum how you
would vote and what would be best
for the business community.
To apply to join the panel, go to
cityam.com/panel
PoliticsHome.com PoliticsHome.com
In partnership
with
I dont think it is right,
but I am hoping that
this will shake a few
things up and maybe
get rid of Skys
choke hold.
A PUB landlady from Portsmouth yes-
terday won her legal bid to screen
cheap foreign coverage of football
matches, in a giant-killing feat to rival
Wimbledons 1988 FA Cup final win
over Liverpool.
The European Court of Justice (ECJ)
ruled that Karen Murphy should be
allowed to use a Greek decoder to
screen football matches.
Murphy was fined after being
caught using the decoder, which she
said was to avoid paying BSkyBs sky
high prices.
BSkyB slipped almost three per
cent yesterday, with some analysts
placing the potential loss of commer-
cial revenue at 70m a year.
Murphys win was not absolute
though, with the court ruling that it
would be a breach of copyright to
broadcast Premier League material
such as its theme tune and logo. This
gives the Premier League a new line
of defence, guaranteeing the legal
argument will continue.
The ruling could have far-reaching
consequences for the Premier League
and other rights holders, including
film and TV production companies
who sell their rights abroad.
The Premier League, which initial-
ly took action against Murphy, could
now be forced to sell pan-European
rights to its matches to a single
broadcast partner.
Sky, the biggest customer for the
Premier Leagues football rights,
would be the clear frontrunner. In
theory it could then wholesale
rights in much the same way it does
with Sky Sports in the UK to BT and
Virgin to broadcasters in areas
where it does not have a presence.
Some analysts have speculated the
Premier League could start its own TV
channel, although its close relation-
ship with Sky makes this unlikely.
The ECJ ruling, which was expected
after the advocate general recommend-
ed it earlier this year, could yet be
ignored by the High Court in the UK,
although this is extremely unlikely.
Pub landlady
hits winner in
football case
BY STEVE DINNEEN
BUSINESS OF SPORT
News
DO YOU AGREE WITH
THE ECJ RULING?
Interviews by Phoebe Torrance
ALAN GYERTSON |
ALPHA BANK
Yes, it is brilliant. Sky
has always been in
control; it has opened a
new market for people
who couldnt
afford Sky.
CHRIS WEBBER |
FAEGRE & BENSON
Yes, it was right
that the court ruled
it was okay. It is cor-
rect application of
the European
law.
SHAUN RANDELL |
AMLIN
* These views are those of the individuals above
and not necessarily those of their company.
Karen Murphy
The vindicated pub landlady is now
free to screen Premier League games
through her Greek encoder, saving her
more than 7,000 a year.
Other rights holders
Other sporting bodies and even film
and TV production companies could
see the way they sell rights affected
by the ECJ ruling, meaning they could
also lose out.
ECJ
The ruling shows the power of the
European Court of Justice to influ-
ence high-profile cases in its mem-
ber states.
Premier League
Richard Scudamores organisation,
and therefore top flight clubs,
could find their games worth far
less in light of the ruling.
BSkyB
Analysts say BSkyB, run by Jeremy
Darroch, could lose 70m a year in
commercial revenues
in the wake of the
ruling. It may now
bid for pan-
European rights.
UEFA
Michel Platinis governing body
will also be affected by the rul-
ing. It may have to reassess the
way it sells Champions League
rights to individual EU member
countries.

| |

|

|

News
INDIAN industrial giant Essar is set to
raise about $750m (485m) by floating
its infrastructure assets on the London
stock exchange next year.
The Mumbai conglomerate is
believed to have hired JP Morgan and
Credit Suisse to advise on the initial
public offering (IPO), which would pro-
vide foreign cash to boost its expansion
plans.
The move could see Essars port and
construction units merged and listed
as Essar Infrastructure.
The group, which is controlled by bil-
lionaire brothers Shashi and Ravi Ruia,
is considering an IPO in early 2012 in
the hope that storms hitting global
markets will have calmed by then.
Market turmoil has forced several
major listings around the world to put
plans on hold, such as those scheduled
by Facebook, Groupon, Manchester
United and Fitness First.
Last night a spokesman for Essar
declined to comment on the IPO plans
beyond an earlier statement saying it
is always considering options for capi-
tal-raising and that no specific transac-
tion has been proposed.
Essar has interests in steel, ports and
logistics and telecommunications. An
IPO in Britain would make it easier to
raise money to buy assets here and in
Europe and would be the largest over-
seas listing by an Indian company after
the groups own Essar Energy floated
for 1.3bn in London in May last year.
Shares in Essar have been hit, howev-
er, by delays to key power projects,
caused by battles with Indian regula-
tors. They reached a high of nearly 6
at the end of last year but closed down
3.57 per cent last night at 237.7p
Last month Essar Energy, a power
generator and refiner, was reported to
have entered talks with firms includ-
ing Exxon Mobil, Chevron, and
ConocoPhilips to acquire oil and gas
assets in Africa, Latin America and
Australia.
More Indian companies are going
overseas for listings because they face
high borrowing costs and depressed
capital markets in Asias third-largest
economy.
Essar looks to
$750m listing
Essar is hoping to float its infrastructure arm at some point early next year
BY PETER EDWARDS
CAPITAL MARKETS
SIR FRED
GOODWIN
SAGA RUNS
AND RUNS
JUST when you thought things couldnt
get any worse for disgraced banker Sir
Fred Goodwin, The Capitalist hears the for-
mer RBS CEO was once snubbed in
favour of a company that had recently
given half of Glasgow diarrhoea.
The story starts in 2003, when BBC
Scotlands head of news Atholl Duncan,
needing a change of scene after exhaus-
tively covering the Lockerbie and
Dunblane tragedies, called in the head-
hunters to explore his career options.
As luck would have it, two individuals
required some public relations assistance
at that time. One, a little-known
Edinburgh banker called Fred Goodwin;
the other, Jon Hargreaves, the CEO of
Scottish Water, then Scotlands most
unpopular company after infecting thou-
sands of civilians with a virulent bug.
Deciding to pursue both leads, Duncan
visited Goodwin in the RBS HQ in St
Andrew Square but left distinctly unim-
pressed by the shy banker with no
charisma. Even worse, Goodwins PR
brief was rather vague: all he was con-
cerned about was keeping his remunera-
tion out of the press, recalled Duncan,
who turned down the now-infamous fin-
According to a BBC mole, the refresh-
ing Rastani, who admitted traders dont
really care that much about economic
collapse, was simply saying what every-
one else was thinking. Traders only
make money when there are peaks and
troughs in the market. If the general pub-
lic understand the City a bit better as a
result [of Rastani], that is a good thing.
BEARDED LADIES
TO THE British Museum for the launch of
The Tomb of the Unknown Craftsman: the
exhibition curated by cross-dressing
celebrity artist Grayson Perry (above).
The display marks the first arts sponsor-
ship by business adviser AlixPartners,
whose MD Pippa Wicks said the collection
knocked her sideways and made her
blush. This is the first time the British
Museum has sponsored an exhibition
of this kind, Wicks told The Capitalist
on regaining her composure.
And with Polynesian fetishes and a
bust of a bearded Queen Victoria on
display, possibly also the last.
ancier to become corporate affairs direc-
tor under Hargreaves.
Of course, its all (Scottish) water under
the bridge now but the moral of the
story still stands. Only work with chief
executives you can empathise with, said
Duncan. You have to be able to spend
more than an hour in their company.
BEANS MAKE TOASTS
AND SO to the Institute of Chartered
Accountants of Scotland (ICAS), where
Duncan is now global comms chief for
CEO Anton Colella, the former religious
studies teacher who made his name lead-
ing the Scottish Qualifications Authority.
ICAS wants to become world class,
said Colella at the annual CA Dinner at
The Savoy on Monday night, where top-
level beancounters such as KPMG chair-
man John Griffith-Jones and the worlds
most influential accountant Sir David
Tweedie raised toast after toast between
lashings of haggis and single malt.
Stealing the show, however, was ICAS
president Iain McLaren, who held his own
against comedian Dara OBriain with his
joke at the expense of the BBCs business
editor Robert Peston. The difference
between Robert Peston and God, of course,
is that God doesnt think he is Robert
Peston. Although Peston, who yesterday
announced his Speakers for Schools initia-
tive to help disadvantaged students, is in
fairness rather saintly at the moment
RECESSION-PROOF
SUPPORT from the corporation that
hired him for Alessio Rastani (right),
the day trader from Kent who creat-
ed a media storm with his dream-
ing of recession remarks.
Disgraced
RBS banker
Sir Fred
Goodwin was
snubbed in
favour of
Scotlands
most hated
company
The Capitalist
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
Lack of empathy: Fred Goodwin, as he was in 2003, presented an unappealing PR brief Picture: REX
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News
WOLSELEY, the worlds biggest distrib-
utor of plumbing and heating prod-
ucts, swung back into profit for the
first time in three years after increas-
ing sales and cutting down on costs.
The FTSE 100 group, which operates
the Plumb Centre and Ferguson
chains in Britain and the US, said
underlying profit in the year to the
end of July rose to 622m from 450m
the previous year, driven by a five per
cent rise in like-for-like sales.
Chief executive Ian Meakins warned
that the broader picture for the indus-
try remained tough as uncertainty
prevailed around the US property
recovery.
Recent economic forecasts have
weakened and over time this is likely
to have an impact on our markets, he
said in a statement, but reassured that
the group was in good shape.
The company recently sold its
French distribution division Brossette
and its UK-based Build Centre business
for 310m to Saint-Gobain, as part of a
disposal strategy.
Wolseley will put the proceeds
towards its goal of wiping off all of its
debt by the end of 2012 from a current
adjusted net debt level of 490m.
The group is also planning to spend
up to 200m on bolt-on acquisitions
across 25 countries, Meakins said.
Shares closed down 1.3 per cent to
1,516p last night.
Seymour Pierce analyst Kevin
Lapwood said: There was some disap-
pointment that the outlook was get-
ting worse but I think you have got to
take some comfort that the balance
sheet is in much better condition.
Profits return
yet Wolseley
still cautious
BY KASMIRA JEFFORD
CONSTRUCTION
ANALYSIS l Wolseley Plc

p
1,600
1,560
1,520
1,480
1,516.00
4 Oct
ANALYST VIEWS: ARE WOLSELEYS RESULTS
ON TRACK? Interviews by Kasmira Jefford
CHARLIE CAMPBELL | LIBERUM CAPITAL

Sales growth in August and September was in line with Q4 and while the
statement is somewhat cautious, this is general rather than specific. Fergusons like-
for-likes have turned strongly positive and is clearly outperforming the market. We
find the results reassuring and confirm our positive investment case.
CHRIS ALEXANDER | BNP PARIBAS

The group has seen a slowing in fourth quarter like-for-like sales
growth to three per cent from the previous quarters up six per cent, and is the
slowest rate of growth in the last five quarters. This may give some concern but is
hardly unexpected given the deteriorating macro backdrop.
HOWARD SEYMOUR | NUMIS SECURITIES

Self-help has been the mantra of the management since their introduction
to Wolseley, and results to date bear witness to the success of this strategy.
Going forward, the uncertain outlook will obviously take its toll... but with self-help in
place we remain convinced that growth initiatives will enable operational out-
perfomance in the US market especially.
CEO Ian Meakins

said Wolseley was
in reasonable
shape to tackle a
downturn"
UK insurance companies were yester-

day granted more time to change their
internal structure ahead of the start of
new Solvency II regulation in 2014.
The Financial Services Authority
pushed back the deadline for insurers
to seek its approval for their proposed
new internal models from May 2012 to
mid-2013.
Its decision comes after European
regulators bowed to industry concerns
that they had too little time to prepare
for the changes, and delayed Solvency
IIs start date by a year to January 2014.
The FSA billed its change as a com-
promise that balances what we need
to do to discharge our regulatory obli-
gations and bring in the new regime,
with the needs of the industry.
The change will give the UKs insur-
ers more time to prepare for Solvency
II, which will force them to hold more
regulatory capital against risks.
Insurers that want to have a new,
unique internal structure approved by
the FSA can send it their applications
from 30 March 2012 to mid-2013.
But advisory firms said the change
could lead to a slowdown in prepara-
tion for the new rules.
While certain elements of a delay
would be welcome, nobody wants a
loss of momentum as insurers have
been working towards Solvency II for
many years and are eager to start
embedding it into their businesses,
said PwC insurance partner Jim
Bichard.
Insurers given
deadline delay
INSURERS
News
EUROPEAN regulators will today file a
list of formal objections to the block-
buster $10.2bn (6.6bn) merger of the
NYSE Euronext and Deutsche Boerse
stock exchanges, perhaps forcing the
parties to offer concessions to get the
deal approved.
The European Commission is con-
cerned that the merger, which would
create the biggest stock exchange in the
world, could hurt competition in
Europes market for trading stocks and
other financial instruments such as
derivatives.
It has been investigating the effect of
the merger on competition and City A.M.
understands its statement of objec-
tions will run to 200-300 pages of evi-
dence.
The merger has drawn criticism from
other European exchange operators,
including the London Stock Exchange,
which fear it will have too great a mar-
ket share in some instruments.
Both Deutsche Boerse and NYSE
Euronext own large derivatives trading
operations Eurex and Liffe respective-
ly which, when merged, will control
about 91 per cent of the market for
exchange traded derivatives.
The European derivatives market is
a duopoly, the LSE Group said in its
response to the European competition
investigation in July. NYSE Euronext
and Deutsche Boerse dominate EU
derivatives trading as each others clos-
est competitors. New entrants have
been unable to challenge their position
because of restrictive licensing practices
and closed clearing pools.
The two exchanges will be able to
respond to the objections and can offer
concessions to the regulator to fix the
problems, but have already ruled out
selling any part of their derivatives busi-
nesses to satisfy the objections.
If that was the case [selling the deriv-
atives businesses], there would be no
deal, one source told City A.M.
A NYSE Euronext spokesman said it
expected to win regulatory approval for
the merger. A statement of objections
doesnt prejudge the Commission's
final decision, he said. We are confi-
dent the merger will be cleared.
EU objects to
NYSE merger
Deutsche Boerse chief executive Reto Francioni favours global expansion Picture: REUTERS
BY ALISON LOCK
CAPITAL MARKETS
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SUKHPAL Singh Ahluwalia was just 18
when he spotted the chance to buy a
car parts shop in North London that
had gone into bankruptcy for 5,000.
The Wembley-based entrepreneur
is now set to pocket up to 280m after
agreeing to sell his business Euro Car
Parts to US rival LKQ Corporation.
Singh, hailed as a remarkable and
incredibly bright self-made man by
those who know him, moved to the
UK aged 13 with his family fleeing Idi
Amins Ugandan regime.
After snapping up the Willesden
car parts shop in 1978 using a small
bank loan and funds from his father,
he branched into the import and sup-
ply of parts for prestige German car
brands such as BMW and Mercedes.
Over the past 30 years, Singh has
transformed Euro Car Parts into the
UKs biggest distributor of replace-
ment components for vehicles, with
89 outlets staffed by more than 3,500
employees.
The firm, wholly owned by Singh,
is expected to generate revenues of
approximately 78-81m for 2011.
Chicago-based LKQ will buy the
firm for 225m and has agreed to pay
an extra 55m if Euro Car Parts meets
certain growth targets in 2012 and
2013.
Euro Car Parts sold to
US rival LKQ for 280m
Euro Car Parts founder Sukhpal Singh will stay on at the firm after its takeover
News
BY KASMIRA JEFFORD
M&A
Robert W Baird, the boutique investment

bank, acted as adviser to Euro Car Parts
with David Silver, co-head of investment
banking, leading the team.
Silver, who will take over as the head
of European investment banking next
year, joined Baird in 1998 and is a
founding member of the firms M&A
team in Europe. His team has advised on
deals including FTI Consultings acquisi-
tion of public relations firm Financial
Dynamics in 2006 and the sale of pro-
duction agency Tag Worldwide - led by
Crystal Palace football club owner Steve
Parish - to Williams Lea in July. Silver,
who has advised Euro Car Parts for
more than three years, said they fit
extremely well culturally with LKQ and
have exciting times ahead.
MEET THE ADVISERS
DAVID SILVER
ROBERT W BAIRD
LAND Securities, the UKs biggest
commercial landlord, has secured
planning consent for a new mixed
office and retail development near
St Pauls Cathedral in the City of
London.
The 250,000 square foot scheme
will replace three existing buildings
on the corner of Shoe Lane and
Little New Street with cafes, restau-
rants and premium office space for
Londons midtown market, the
company said in a statement yester-
day.
The site, renamed New Street
Square, will be designed by Robin
Partington Architects, who were
also key designers behind 30 St
Marys Axe, better known as the
Gherkin.
Land Securities opened its city
shopping centre One New Change,
which overlooks St Pauls
Cathedral, last October.
Colette OShea, head of develop-
ment for the firms London portfo-
lio said: New Street Square has
become an important London loca-
tion and has helped put Midtown
on the map.
1 New Street Square will be a
natural extension to the area, mak-
ing it even more attractive to poten-
tial occupiers.
Work is expected to start in 2013
and completion is expected in 2016.
Land Securities were unavailable to
comment on the cost of the scheme
last night.
Companies are flocking to reno-
vate the area around St Pauls cathe-
dral.
Axa Real Estate partners last week
submitted planning application for
a similar commercial property
scheme opposite St Pauls
Cathedral.
Some 60,000 sq ft of new office
space, along with 20,000 sq ft for
restaurants, is included within
Axas plans.
Land Sec gets
planning for
St Pauls build
CITY law firm Norton Rose has sealed
its second Canadian merger, announc-
ing a tie-up with resources specialist
Macleod Dixon less than a year after it
took over Montreal-based Ogilvy
Renault.
Norton Rose said yesterday it had
inked a deal that would see it team up
with Macleod Dixon from January
2012, in a move that will boost its min-
ing and energy practice and help it
expand into South America and
Central Asia.
This is another very exciting move
for the group, said group chief execu-
tive Peter Martyr. This merger delivers
real strength in energy and mining in
Canada, as well as in emerging mar-
kets such as Latin America and Central
Asia.
Bill Tuer, managing partner of
Macleod Dixon, will join the executive
committee of Norton Rose, which will
have a total of 2,900 lawyers across 43
offices once the merger is completed.
Once the firms are joined, Norton
Rose will add 60 lawyers in Caracas,
Venezuela and Bogota, Chile, as well as
13 in Kazakhstan.
Norton Rose Canada, as the groups
Canadian operation will be branded,
will have almost 700 lawyers, placing it
in the top three Canadian legal prac-
tices by headcount.
New Canadian
link for law firm
Norton Rose
Moultons Enigmatic vehicles bid was described as opportunistic Pic: Micha Theiner
BY KASMIRA JEFFORD
PROPERTY
LEGAL SERVICES
News
Jon Moulton sees 9.7m
offer for Clarity rejected
JON Moulton has seen his 9.7m bid
for Clarity Commerce rejected, after
the offer was branded highly
opportunistic by the firms board.
Clarity said the unsolicited bid by
Enigmatic a vehicle controlled by
Moultons buyout company Better
Capital undervalues the compa-
ny and its prospects, adding the
board decision to recommend its
rejection was unanimous.
The firm, a provider of software
solutions to the entertainment,
retail, hospitality and leisure sector,
posted a loss in its last financial
year, which it blamed on reduced
demand in the retail sector.
Clarity, chaired by Sir Colin
Chandler, the former chairman of
easyJet, said it has since restruc-
tured its operations and has
achieved significant cost reduc-
tions. The cost reduction pro-
gramme and a round of UK
redundancies, which completed last
month, are expected to remove a
further 1m from its cost base.
Venture capitalist Moulton holds
a 9.4 per cent stake in Better
Capital, which he founded in 2009
with a focus on turnaround invest-
ments after quitting Alchemy
Partners.
BY STEVE DINNEEN
TECHNOLOGY
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Kindle Fire could lead the two-man tablet race
AMAZONS Kindle Fire entry into the
US tablet market has caused a flurry of
speculation around its impact on
tablets. It seems that the Kindle Fire
will now lead Amazon and Apple into
a two-horse race, potentially eliminat-
ing all other competitors.
YouGovs TabletTrack suggests that
250 is the price point where the
tablet market will take off. Tablets will
fail as a mass-market product until the
price comes down to this point. The
Kindle Fire launches at $199 versus the
iPad2 at $499, so if we expect the same
pricing differential in the UK, that
price point will have easily been hit.
Apple is the current UK market
leader in terms of awareness, prefer-
ence and price. The latest YouGov
TabletTrack data shows 72 per cent of
hot prospects, consumers looking to
buy a tablet, will consider an iPad2
with a further 61 per cent saying they
expect to buy one. Competitors only
reach single figures of these hot
prospects. However, the Kindle Fire
competes in terms of price and specifi-
cations, and also in the trust con-
sumers have in the Amazon brand.
Amazon consistently achieves a
Recommendation index score in
YouGovs BrandIndex at around 60
points. Apple however fluctuates
between the 25 and 35 point mark.
BrandIndex shows that Apples
brand and Apples iPad Buzz index
scores have risen rapidly since
Amazons Kindle Fire announcement
last week. Yet, Apples overall and iPad
Value scores have both fallen by some
14 and 16 points in the last nine days.
Yesterday, some 49 Value index points
separated Amazon and Apple. If the
battle is to be fought on price then
Amazon starts with a clear advantage.
It has to be said that yesterdays
Apple launch will impact the iPhone
brand line. Buzz for iPhone remains
fairly static but one would expect this
to rise considerably in the coming
days. Stephan Shakespeare is the chief
executive of YouGov
BRANDINDEX
STEPHAN SHAKESPEARE
NEWS | IN BRIEF
Rio will not change Mongolia deal
Rio Tinto and Ivanhoe Mines have reject-
ed moves by the Mongolian government
to increase its stake in the vast Oyu
Tolgoi copper and gold project located in
the resource-rich country. Mongolia last
week invited the miners to renegotiate
the terms of a 2009 deal that included
boosting Mongolia's share in the $10bn
deposit from 34 to 50 per cent.
Sugar firm Cristal buys rival stake
French sugar cooperative Cristal Union
agreed to take control of Societe
Vermandoise yesterday in a deal valued
at nearly 1bn (863m) that would cre-
ate the number two sugar group in
France after Tereos. The exclusive deal
covers a 51 per cent stake owned by the
Delloye family in Vermandoise, which has
a market capitalisation of 262m.
ANALYSIS l Brand index: Buzz
07Sep 17Sep 25Sep 03Oct
40.0
30.0
20.0
10.0
0.0
Amazon
Apple
Amazon
Apple
Apple iPad
Apple iPhone
Apple iPad
Apple iPhone
ANALYSIS l Brand index: Value
11 Sep 17Sep 25Sep 03Oct
60.0
40.0
20.0
-20.0
0.0
Amazon
Apple
Amazon
Apple
Apple iPad
Apple iPhone
Apple iPad
Apple iPhone
Your IocaI Safer Neighbourhoods
team is tackIing the crime issues
that you teII us most affect you.
To speak to them about your
concerns, or arrange to meet them:
Visit www.met.poIice.ukJ
saferneighbourhoods
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CaII 101
The MetropoIitan PoIice Service is
here for London, working with you
to make London a safer city.
4]ZZ]eca]\BeWbbS`( metpoIiceuk
DUBAI-BASED ports operator DP
World expects its new London
Gateway deep-sea container port to be
operational by the fourth quarter of
2013, it said yesterday, with spending
on the project set to continue apace
despite the economic gloom.
London Gateway, located about 25
miles east of central London on the
north bank of the river Thames, is a
staged 1.5bn development embrac-
ing the container port itself as well as
what is expected to be Europes
largest logistics park.
The worlds third-largest port oper-
ator said that it would invest another
$1bn on the project over the next
three years, having already spent
$600m, with construction in progress
since January last year.
The funds for the project are com-
ing from the resources of the compa-
ny and international financial
institutions. They are already in
place, said Sultan Ahmed bin
Sulayem, chairman of DP World.
These projects are not something
that would be affected by the
[Eurozone debt] crisis. They are long
term.
The port will have an initial con-
tainer capacity of 1.6m twenty-foot
equivalent units and DP World said it
will contribute 3.2bn to Britains
economy every year.
Business secretary Vince Cable said
the new port would transform the
UKs maritime port infrastructure
and save millions of pounds every
year in land transport costs.
DP World sees
2013 London
ports launch
HERITAGE Oil has bought control of a
Benghazi-based oil services firm, strik-
ing the first upstream deal in Libya
since the overthrow of Muammar
Gaddafi and building on the British
explorers reputation as a first mover
into political hot-spots.
Heritage said yesterday it had
bought 51 per cent of Sahara Oil
Services Holdings for $19.5m (12.7m).
It was reported last month it was tout-
ing for business in Libya.
Heritage said that as well as having
necessary permits to provide onshore
and offshore oil field services, Sahara
Oil Services had the rights to own and
operate oil and gas licences in Libya.
Also yesterday, the head of French
oil company Totals Libyan joint ven-
ture Ahmed Abulsayen called for the
formerly all-powerful National Oil
Corp to leave smaller companies with
more operational independence.
Heritage deal marks first
move on Libyan oil market
A
L
G
E
R
I
A
TUNISIA
NIGER CHAD
L I BYA
EGYPT
Benghazi
Medi terranean Sea
Tripoli
Sirte Basin Holds about
80% of Libya's proven oil
reserves and responsible for
most of Libya's oil output
Oil Gas Pipeline: Oil Field: Gas
200 km
BY HARRY BANKS
INDUSTRY
News
CITYA.M. 5 OCTOBER 2011
BY HARRY BANKS
ENERGY
17
ANALYSIS l DP World LLC
p
690
670
650
655.50
4 Oct
SUPPORT services provider Carillion,
said yesterday that it was on track to
deliver substantial growth in 2012,
helped by the 306.5m acquisition of
energy-saving firm Eaga and an
increase in government sector out-
sourcing.
In its third-quarter update, the FTSE-
250 group said it had won work worth
up to 670m since the half-year and
reiterated its aim to double revenue in
the Middle East and Canada to 1bnin
the next three to five years.
Carillions Eaga
deal lifts group
SUPPORT SERVICES
BRITISH printing firm St Ives posted a

28 per cent rise in annual profits yes-
terday, helped by its shift towards the
higher-margin marketing services
unit, adding that it will look at more
acquisitions in the business.
The group, which prints 160m
books each year from the Bible to
bestsellers like Harry Potter, also
raised its total dividend for the year
by 50 per cent to 5.25p, helping to
send shares up 9.78 per cent to 75.75p
last night.
St Ives enjoys
earnings jump
MEDIA
News
EUROPEAN airline shares followed
US counterparts in a downward spi-
ral yesterday as investors confi-
dence in the sector ebbed away.
International passenger numbers
across airlines dropped in August, a
month that traditionally provides a
boost with summer holidays in full
swing.
Air France-KLM was down more
than nine per cent as the sector
took a hammering amid gloomy
forecasts on world growth.
International Airlines Group
which encompasses BA was off by
more than three per cent as the
grim trend spread across the major
carriers.
Even budget carriers were hit,
with Ryanair dropping close to four
per cent and easyJet falling 1.5 per
cent.
Shares in American Airlines par-
ent company AMR nosedived by a
third on Monday amid fears that
the carrier may be forced into
Chapter 11 bankruptcy protection.
Under Chapter 11 a company can
enter bankruptcy on its own terms.
Yesterday its shares recovered
slightly from a 41 per cent slump on
Monday, which triggered automatic
halts in trading.
Rumours about a possible restruc-
turing appear to have sparked the
sell-off, including reports that a
large number of pilots were retiring
early in case a filing affected their
retirement plans.
Fears of a second recession in the
US also contributed towards the
share drop, which affected other air-
line shares.
Delta Air Lines shares rose
around four per cent yesterday,
after an 11.3 per cent fall, while
United Continental was flat in the
wake of Mondays 11.7 per cent
drop.
AMR said there was no company-
driven news that caused the volatili-
ty and described market about
bankruptcy as rumours and specu-
lation. The Texas-based carrier
maintains that it does not want to
file for bankruptcy protection.
Earlier in the week the
International Air Transport
Association said the total passenger
market was down 1.6 per cent while
cargo was down 1.3 per cent com-
pared with July.
Europes airlines hit
by turbulence in US
BY JOHN DUNNE
AVIATION
Air travel has been dented by the global slowdown in recent months, IATA figures show Picture: REUTERS
ANALYSIS l International Consolidated
Airlines
p
162.50
157.50
152.50
147.50
149.30
4 Oct
News
MULBERRY AIMS TO BE BIG IN JAPAN WITH A RAFT OF NEW OPENINGS
MULBERRY has clinched a dis-
tribution deal that will see its
products sold in Japanese
department stores and flagship
shops opened in Tokyo and
Osaka. The company said yes-
terday it had agreed a deal
with a joint venture owned by
Club 21 and Mammina, a unit
of Japanese department store
chain Isetan Mitsukoshi
Holdings. The 10-year deal
anticipates the opening of mul-
tiple department store shop in
shops within the IMH network
as well as new flagship stores
in Tokyo and Osaka in due
course. Mulberry said in June it
expected overseas sales to over-
take those in its home market
in two years. The firm said it
had also agreed with Club 21 to
extend its existing distribution
deal for South East Asia to
2021. This deal covers the dis-
tribution of Mulberry products
into China, Singapore,
Malaysia, Taiwan, Indonesia,
Thailand, the Philippines,
Vietnam and Australia. It will
see flagship stores open in
Singapore, Hong Kong,
Shanghai and Beijing as well
as further openings in the other
countries.
Picture: REUTERS
PROFITS at Aldi have jumped as
British shoppers increasingly hunting
for ways to cut their shopping bills.
Discount supermarkets Aldi and
Lidl have stolen market share from
the likes of Tesco, as the squeezed
middle which Tesco believes consti-
tutes 80 per cent of its customer base
look to cut down on household expen-
ditures.
Accounts filed at Companies House
suggest that Aldi Stores, the British
arm of the retailer, reported an oper-
ating profit of 18.7m in the year,
compared with an operating loss of
21.2m the previous year, on sales
increasing 4.6 per cent to 2.14bn.
However, the groups pre-tax losses
widened after a string of impair-
ments.
Aldi revenues up as
shoppers eye deals
CONSUMER
NEWS | IN BRIEF
Gucci and Tiffany in China bank spat
European luxury-goods conglomerate Gucci
Group and American jewellery house Tiffany
have each alleged in federal court that major
Chinese state-owned banks are maintaining
bank accounts for counterfeiters in China who
are shipping fake designer goods into the US.
The banks Bank of China, China Merchants
Bank and the Industrial and Commercial Bank
of China all have branches in New York. The
luxury-goods makers have petitioned to have
the banks freeze assets in accounts owned by
the alleged counterfeiters and turn over infor-
mation about the clients. Our strategy is to
pursue the assets you follow the money,
said Robert Weigel, a lawyer at Gibson Dunn
& Crutcher in New York, which is representing
the designers. None of the banks involved in
these cases responded to requests through
their New York branches for comment.
Volvo revamps truck business
Swedish truck maker Volvo said yesterday it
will shake up its truck business. Under the
revamp, sales and marketing of all of the truck
companies will be put into three regional
units. Responsibility for the groups joint ven-
tures will be organised in a new unit, Truck
Joint Ventures, under the leadership of Par
Ostberg, who is currently responsible for
Trucks Asia. Truck Joint Ventures will also
report directly to Persson. Hakan Karlsson,
president of Volvo Bus Corp, will become
chairman of Volvo Aero, Volvo Buses and
Volvo Penta and of a new business area, gov-
ernmental sales, the company said in a state-
ment. Karlsson will also be chairman of the
board of Volvo Construction Equipment.
LUXURY wallpaper and soft furnish-
ings group Walker Greenbank yester-
day reported a 13 per cent rise in
profits thanks to expanding interna-
tional sales.
The group held two big launches
early in the year for Morris & Co and
the Harlequin Momentum collection,
which fuelled a rise in sales.
Group revenues rose 11 per cent to
37.4m, with pre-tax profits up to
2m.
Russia, Japan and China were the
fastest growing markets for the com-
pany, which employs 300 people.
City analysts raised their forecasts
for the full year to next January and
the following year.
Chief executive John Sachs said the
group had kicked off the autumn sell-
ing season when people redecorate
in time for Christmas confident of
another strong year.
The company said it had invested in
technology to improve its production
processes. It raised its dividend from
0.15p to 0.20p a share.
Overseas sales
boost Walker
Greenback
RETAIL
News
PRICES rose at their highest level
since October 2008 in the twelve
months to August, the Organisation
for Economic Cooperation and
Development (OECD) revealed yester-
day.
Consumer price index (CPI) infla-
tion accelerated to 3.2 per cent over
the year across the 34 member coun-
tries, up from 3.1 per cent in the year
to July.
Energy and food price inflation
again came in above the average for
all goods, at 13.5 per cent and 4.6 per
cent respectively.
Soaring energy prices were a par-
ticularly large component in pushing
the CPI up by 3.8 per cent in the US,
coming in at 18.4 per cent.
At 4.5 per cent the UKs inflation
rate is one of the highest in the rich
world, exceeded only by Turkey, at
6.7 per cent, New Zealand, at 5.3 per
cent, Iceland at five per cent and
Estonia at 5.3 per cent.
However, the CPI increased by just
0.2 per cent in August on a month-by-
month basis, down from a high of 0.7
per cent in March. Some analysts
believe inflation will fall towards the
end of the year.
Inflation has nearly peaked in the
US, and although it came in higher
than we expected in the Eurozone,
we think most pressures are dip-
ping, Andrew Kenningham from
Capital Economics told City A.M..
The lowest rates of inflation were
seen in Japan and Switzerland (both
0.2 per cent) and Slovenia (0.9 per
cent).
Inflation hits
a three-year
high in OECD
THE SLOWEST growth in job vacancies
for two years was recorded in
September by the KPMG/Recruitment
and Employment Confederations
(REC) monthly report on jobs, out
today.
For permanent staff placements the
reports index has fallen to 51.2, down
from 60.6 in April.
REC boss Kevin Green is calling on
the chancellor to pause national insur-
ance contributions to boost jobs. We
are urging the chancellor to introduce
a National Insurance holiday for at
least a year to encourage SMEs to take
on young people, he said.
The index is compiled from surveys
of recruiters in which they are asked if
they have placed higher or lower num-
bers of staff in permanent roles com-
pared with the previous month. Any
figure above 50 shows an increase in
vacancies filled.
Septembers small positive figure
means numbers of placements filled
have risen for 26 consecutive months,
but that the rate is slowing because of
a lack of confidence over the econom-
ic outlook, the report explains.
Construction flat-lines on
stagnant housing market
FLAT activity in the construction sec-
tor in September was revealed yester-
day by Markits purchasing
managers index (PMI).
A sharp fall from 52.6 in August to
50.1 in September was recorded,
bringing the sector closer to the 50
threshold that separates growth from
contraction.
UK construction companies con-
tinued to struggle in the face of grow-
ing concerns about the wider
economy, with weaker client confi-
dence leading to a reduction in new
business received during September,
said Markit economist Sarah
Bingham.
Businesses are relying on existing
contracts to support output, which
bodes ill for growth in coming
months.
Analysts are also blaming cuts in
government spending for the sectors
poor performance.
The latest deterioration in the con-
struction PMI was mainly a result of
falls in housing and civil engineering
activity, said Barclays Capitals
Blerina Uruci.
Both sectors had been expected to
perform poorly this year as a result of
the continued weakness in the hous-
ing market and the government cuts
in infrastructure spending.
Pause tax to boost
jobs, say recruiters
BY TIM WALLACE
WORLD ECONOMY
FACTORY orders in the US fell 0.2 per

cent in August, figures released yes-
terday from the Commerce
Department showed.
The decline marks a sharp turn-
around from the 4.2 per cent increase
in new orders measured in July.
Inventories increased for the 20th
consecutive month, led by transporta-
tion equipment which increased by
1.3 per cent.
Analysts had expected the figures
to show the sector flat-lining and
were disappointed by the decline.
Manufacturing
slow as factory
orders decline
UK ECONOMY
US ECONOMY
UK ECONOMY
TAXMAN TAKES QUARTER OF PENSION INCOME

TWENTY-SEVEN per cent of pensioners income is taken in direct and indirect taxation,
according to a report out today from MetLife. Taxes such as VAT are the worst offenders,
taking 2,966 from the average pensioners 18,834. Income tax comes next, the study
found, taking 1,300, with councils accounting for a further 850. Picture: REX
NEWS | IN BRIEF
Bailey calls for clearer aims
Clear public policy objectives must be
laid down if regulators want to create
the best chance of achieving financial
stability, executive director at the Bank
of England Andrew Bailey told a confer-
ence at the Said Business School in
Oxford yesterday. Bailey who is also
deputy head of the Financial Services
Authoritys prudential business unit
pointed to the Bank of Englands target
of keeping inflation low and steady as an
example of a strong policy framework
with a well-explained key objective. He
said the regulators objective should be
clear and well explained, and seek to
protect the wider financial system from
the collapse of any individual institution.
Producer prices down across EU
In a sharp turnaround from the situation
in July, producer prices fell across the
Eurozone and wider EU in August,
Eurostat announced yesterday. The
index fell by 0.1 per cent across the 17
countries in the currency union in
August, while they dropped 0.2 per cent
across the 27-nation EU as a whole.
Over the year, however, prices rose by
5.9 per cent in the Eurozone and 6.7 per
cent in the wider EU. Energy prices
were responsible for the largest turn-
around, rising by 13.2 per cent over the
12-month period, but falling by 0.9 per
cent in August alone. Greek producers
saw the largest monthly fall, of 1.2 per
cent, whilst Latvia experienced the
largest rise in August, of 0.8 per cent.
SOME of Berkshire Hathaways largest
units will post record profits this year,
but the conglomerate's housing-relat-
ed businesses are doing as poorly as
they ever have, chief executive Warren
Buffett said yesterday.
Speaking at a Fortune event, Buffett
said Berkshires Burlington Northern
rail unit, its MidAmerican energy
unit, manufacturer Iscar and diversi-
fied group Marmon will all post
record profits this year.
On the other hand,
Buffett said Berkshires
Shaw Carpet unit is down
about 25 per cent of its
staff, while the Acme
Brick business has idled
half its factories.
As of today our
housing-related busi-
nesses are as bad as
theyve ever been
during this period,
Buffett said.
The one large business Buffett did
not mention was Berkshires insur-
ance business, which ranges from auto
insurer Geico to reinsurer National
Indemnity. He has previously said
Berkshires insurance arm might post
an underwriting loss for the year.
Buffett also brushed off concerns
over the sharp drop in Bank of
America shares,
The Sage of Omaha made a
$5bn investment in the bank
last month with warrants to
buy more at $7.14 per share,
but the bank has slumped
below $6 recently.
We agreed to hold
it for at least five
years, so what Im
thinking about is
where Bank of
America will be in
five years; and
nothing in the last
24 hours or 48
hours has
changed my
views on that.
Buffett firms
to post record
annual profits
TWO of Russias most powerful oli-
garchs are set to compete with each
other in a multi-billion dollar auction
for state-owned rail group Freight One,
which goes up for sale at the end of
this month.
Steel magnate Vladimir Lisin,
Russias richest man with a $24bn for-
tune, will bid for the Russian Railways
unit via his transport arm Universal
Cargo Logistics Holding (UCLH), a
spokesman for UCLH said yesterday.
The spokesman added he expected
the biggest threat to Lisins success to
come from mining supply group
Transoil, controlled by Gennady
Timchenko, a billionaire oil trader and
longtime associate of Prime Minister
Vladimir Putin.
The battle for control of Freight One
was reduced to a likely straight battle
between the two oligarchs after
Globaltrans, the only publicly listed
contender, pulled out of the race last
week.
Globaltrans, which like Transoil is
part-owned by transport holding com-
pany N-Trans, said it would pull out of
the auction due to volatile global
financial conditions despite having
secured financing.
Russian Railways has been prepar-
ing the sale of around 75 per cent of
Freight One as part of a long-term plan
to raise cash for new infrastructure.
Oligarchs fight
for control of
Russian railway
The countrys historic banking laws are the most secretive in the world
BY HARRY BANKS
US ECONOMY
INFRASTRUCTURE
News
Switzerland is still worlds
top tax haven says report
SWITZERLAND, despite bank settle-
ments with the US to disclose tax
evaders, remains the top refuge for
financial secrecy, according to a new
international ranking of tax haven
countries.
Switzerland is the world leader in
financial opacity, only grudgingly
conforming with disclosure agree-
ments among developed countries
while courting tax evaders in develop-
ing nations, said a report released by
the nonprofit, nonpartisan Tax
Justice Network.
Steeped in a long tradition of bank
secrecy, Switzerland has recently
signed information sharing agree-
ments as part of a reporting program
with the Organisation for Economic
Co-operation and Development.
But these efforts have been inef-
fective, the report said.
Switzerlands widespread involve-
ment in the administration and use
of trusts, foundations and offshore
companies remain a major barrier to
tackling tax evasion and illicit finan-
cial flows, the report said.
Officials at the Swiss embassy in
Washington were not immediately
available for comment yesterday. The
US ranked fifth, behind Switzerland,
the Cayman Islands, Luxembourg and
Hong Kong.
TAX
News
New West End Company
Harold Tillman, the owner of Jaeger
and Aquascutum and chairman of the
British Fashion Council, has been
appointed as the fourteenth member
of the business improvement districts
strategic board at the New West End
Companys annual general meeting.
Williams de Bro
Nathan Dosanjh has been hired as a
business development executive, sup-
porting the private banks Birmingham
office. Dosanjh joins from Coutts & Co,
where he was a private banker.
Truestone Asset Management
The wealth manager has launched a
new employee benefits business,
Truestone Corporate Solutions, to be
led by Robert MacGregor, formerly a
corporate development director at
Alexander Forbes. Also joining TCS
from Alexander Forbes is Tim Whiting,
who will lead a new defined benefit de-
risking team at TCS.
Deloitte
The business advisory firm has
appointed Matt Peers as chief informa-
tion officer in the newly formed inter-
nal client services leadership team.
Peers joins Deloitte from The Carphone
Warehouse, where he was managing
director of IT.
Coutts
The private bank has appointed Mary
Haly as senior investment director in
the tailored portfolio services team.
Haly joins Coutts from Kleinwort
Benson Private Bank, where she was
co-head of the London portfolio man-
agement team.
Atrium
Atrium European Real Estate has
appointed David Doyle as chief finan-
cial officer, effective from 1 January
2012. Doyle will replace Robert Bolier,
who is leaving the company to pursue
other business interests.
Anello Asset Management
The alternative investment manager
has hired Stavros Loizou to manage
the companys newly launched
Mantis Program. Loizou was most
recently a founder and chief execu-
tive of Lewis Charles Securities;
prior to this, he was head of strate-
gic trading at Fuji Bank.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
Wall St bounces
despite volatility
T
HE Standard & Poors 500
brushed up against a bear mar-
ket yesterday, but investors
rushed in to buy technology and
other beaten-down sectors and the
index posted its largest gain in more
than a week.
The broad US market index has fall-
en nearly 18 per cent in the past four
months, hurt by sluggish economic
growth worldwide and ballooning
deficits in Greece and other Eurozone
nations.
But the depth of those losses
brought in bargain hunters late in
yesterdays session. Chip makers and
large-cap techs led the way, even with
bellwether Apple dropping 0.6 per
cent after the unveiling of its latest
phone didnt live up to the hype.
Apple shares, earlier, fell more than
five per cent.
Were buying some stocks, stick-
ing to companies with strong balance
sheets, with global if not emerging
market focus, certainly not in the
financial services area, said Kim
Forrest, senior equity research analyst
at Fort Pitt Capital Group.
The Dow Jones industrial average
gained 153.41 points, or 1.44 per cent,
to 10,808.71 at the close. The S&P 500
Index rose 24.72 points, or 2.25 per
cent, to 1,123.95. The Nasdaq
Composite Index climbed 68.99
points, or 2.95 per cent, to 2,404.82.
The market pared losses before
midday after Federal Reserve
Chairman Ben Bernanke told
Congress the Fed was prepared to do
more to help the fragile recovery.
Still, the Eurozones frail financial
system is likely to keep the market on
edge.
France and Belgium came to the
rescue of heavy sovereign debt holder
Dexia yesterday in the first govern-
ment bailout of a European bank in
the Eurozone debt crisis. Traders
cited talk that European finance min-
isters agreed to prepare action to safe-
guard their banks as helping the
market bounce back late.
The Dexia bailout came as euro
zone finance ministers delayed a vital
aid payment to debt-stricken Greece,
which could run out of cash shortly.
Investors fear that a Greek default
will force banks to write down bil-
lions of dollars from their books and
kick-start another credit crisis.
Morgan Stanley shares gained 12.3
per cent to $14.01 but are still off 48.5
per cent this year. Shares of Bank of
America rose 4.2 per cent to $5.76.
About 12.9bn shares traded on the
New York Stock Exchange, NYSE
Amex and Nasdaq -- more than 60 per
cent above the daily average so far
this year of 8bn shares.
B
RITAINS top share index hit a
15-month closing low yesterday,
with banks and commodity
stocks leading a broad-based
sell-off, as growing doubts over
Greeces ability to stave off a debt
default triggered fears of financial
turmoil.
The UK benchmark ended down
131.06 points, or 2.6 per cent, at
4,944.44, its lowest close since 5 July
2010.
Markets drew some comfort after
US Federal Reserve chairman Ben
Bernanke said the Fed is prepared to
take further steps to help an econom-
ic recovery that is close to faltering,
with the FTSE 100 briefly paring back
losses.
But uncertainty over Europe domi-
nated sentiment, with investors con-
cerned that European officials will be
unable to prevent Greece's fiscal crisis
from turning into a global banking
crisis.
Banks were left nursing hefty falls.
Franco-Belgian financial group Dexia
came into sharp focus on worries
about its high exposure to Greece.
Its shares dropped 22.5 per cent,
despite assurances from France and
Belgium that they would support it
via guarantees.
In the UK, Barclays dropped 7.6 per
cent, while Lloyds Banking Group
and Royal Bank of Scotland shed 4.9
per cent and 4.2 per cent respectively.
Politicians are two months behind
reality, and their lack of clear leader-
ship in the Eurozone is spooking the
markets, said David Miller, partner
at Cheviot Asset Management.
Investors cant see any reason to
rush into investments at the moment
and they are not being soothed by
patchy announcements which offer
words not actions.
Adding to the gloom, Goldman
Sachs economists lowered their glob-
al growth forecasts and now expect
growth of 3.5 per cent in 2012, com-
pared with 4.2 per cent previously.
They estimated 0.1 per cent
Eurozone growth in 2012, with a
mild recession in the fourth quarter
of this year and the start of 2012.
Ed Woolfitt, head of trading at
Galvan, said the FTSE 100s inability
to close above 5,000, the bottom of a
trading range seen over the last few
weeks, puts the index in a very pre-
carious situation for [this morning].
If we breach 4,800 (tested in early
August), I see no support left in this
market. We would be quite frankly in
freefall, and where we end up is any-
ones guess. The next level of support
could be drawn at 4,000, but thats
clutching at straws.
Commodity stocks fell too, with
energy shares retreating along with
oil as the outlook for demand grew
murkier.
Miners were a major weight as
Credit Suisse echoed Morgan
Stanleys short-term downbeat senti-
ment on the sector, cutting 2012
earnings forecasts for diversified and
base metal miners by up to 30 per
cent.
Lonmin shed 5.3 per cent and
Anglo American fell 3.4 per cent, as
Credit Suisse downgraded their
respective ratings to underperform
and neutral.
Industrials IMI and Weir Group
were the FTSE 100s biggest fallers,
both down more than seven per cent,
as traders underlined their sensitivity
to the economic cycle.
Among individual movers,
International Airlines Group dropped
3.4 per cent on growing fears that its
transatlantic partner American
Airlines is headed for bankruptcy.
Tesco headed a short list of gainers,
up 2.6 per cent, as UBS upgraded its
rating for the retail group to buy.
Another low for the FTSE as
banks and miners take a hit
THELONDON
REPORT
THENEW YORK
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Ultra Electronics Holdings
1,700
1,500
1,300
Aug Sept
p 1,532.00
4 Oct
ULTRA ELECTRONICS
Goldmans Sachs says the US defence contractor is a compelling growth story
in cyber security and airport IT systems, and gives it a buy rating with a
target price of 2,200p. The broker expects better trading to boost earnings
per share over the next three years by one per cent, six per cent and nine per
cent respectively, helped by a recent rally in the dollar and two cyber security
acquisitions. It sees weaker growth in defence, the dollar and GDP as risks.
ANALYSIS l SABMiller
2,300
2,100
1,900
Aug Sept
p 2,005.00
4 Oct
SABMILLER
Nomura rates the global brewer as a buy with a target price of 2600p, and
says the recent Fosters acquisition was a financially and strategically astute
deal for the company. The broker expects the deal to be six per cent accretive
in the first year, rising to eight per cent in the second year, but reduces its
forecast for full year earnings in 2012 by 1.5 per cent to reflect recent curren-
cy headwinds and soft trading in North America and Europe.
ANALYSIS l Danone SA
52
48
44
Aug Sept
45.31
4 Oct
DANONE
UBS rates the French food group as a buy with a target price of 55, down
from 56.50. Danone will announce its third quarter sales on 18 October, and
the broker expects sales growth of 10 per cent to 4.8bn, reflecting organic
growth of six per cent a sharp slowdown from the 8.1 per cent recorded in
the first half. This reflects a normalisation of growth rates in water, and mar-
ket share loss in the US yoghurt market.
4Jul 22Jul 11 Aug 21 Sep 1 Sep
6,200
5,400
5,000
5,800
ANALYSIS l FTSE
4,944.44
4 Oct
PwC
Andrew Sentance has been appointed as a
senior economic adviser at PwC, following his
retirement as a member of the Bank of
Englands Monetary Policy Committee, effec-
tive from 7 November. Prior to serving on the
MPC from October 2006 to May 2011,
Sentances roles included director of econom-
ic affairs at the CBI, director of the Centre of
Economic Forecasting at London Business
School, and chief economist and head of envi-
ronmental affairs at British Airways.
24
The Forum
I
TS the reason the Millennium Falcon in
Star Wars has to make the jump into
hyperspace and the reason passengers
on the Golgafrincham B Ark are in sus-
pended animation in The Hitchhiker's Guide
to the Galaxy. Every author dealing with
space travel has to work with or around
Einsteins speed limit. Nothing goes faster
than light.
And though light goes pretty fast 300m
metres in a second space, as the
Hitchhikers Guide would have it, is big.
Even at the speed of light, travelling between
stars just takes too long without some dodge
to evade Einsteins traffic cops.
RULE BREAKING
Last week, excitement spread when an exper-
iment seemed to show that a certain type of
particle could break this rule. The Opera
experiment is a super-sensitive particle
detector in the Gran Sasso laboratory in Italy.
It is deep in a cavern watching out for neutri-
nos. Neutrinos are a kind of fundamental
particle, produced, for example, by the sun.
They are also produced at the Cern parti-
cle physics lab in Geneva, home of the Large
Hadron Collider. Cern has been firing neutri-
nos under the Alps and across Italy, towards
Gran Sasso, for a few years. Since neutrinos
hardly interact with matter, they pass
through the rock with ease. A small number
of them interact in the Opera detector. And
this is where the fun starts.
STUNNING SPEEDS
The experimenters have a fantastically accu-
rate measure, using differential GPS, of the
distance between Cern and Gran Sasso. They
think they have the 730km distance nailed
to within 20cm. Also, they have synchro-
nised atomic clocks at each end. So, since
speed is distance divided by time, they can
measure the speed of the neutrinos. And
they come up with a number bigger than the
speed of light.
This is an utterly stunning result. They can
hardly believe it themselves, and have put it
out there with a kind of shrug: We know
this looks crazy, everyone, but we need the
rest of the science community to look at it
and find our mistake, because we cant.
People (including me) have been wading in
with suggestions as to possible errors, and
cross-checks which could be done to make
the measurement more solid. But it is
already a careful piece of work and while
there are some good ideas, no one has yet
shown it wrong for sure.
EINSTEIN WORKS
What might it mean if the neutrinos really
are travelling faster than light? Why is it
such a big deal?
In Einsteins theory of relativity time isnt
the same for everyone. It depends upon how
fast you are moving. Previously, Newtonian
physics assumed time was the same for
everyone. Einstein junked that, and instead
said that the speed of light was the same for
everyone. This led to some stunning conse-
quences. One of them was E=mc2. Another is
that nothing can go faster than light, since if
you could catch light up and overtake it,
then its speed would not remain the same
for you. If you caught it up, then its speed
relative to you would in fact be zero.
Weird though it sounds, Einstein's theory
works. Time really does depend on speed.
The very GPS systems which measure the dis-
tances need to take it into account or they
dont work.
This weirdness is nothing though, com-
pared to what happens if things can go faster
than light.
VIOLATING CAUSALITY
Imagine a neutrino being created at Cern
and later arriving at Gran Sasso. Or you get-
ting on the underground and later getting
off again. Someone measuring the time
between you getting on and getting off will
not get the same answer as you, if they are
moving with a different speed. But you and
they will always agree on the order of the
events. That the neutrino was made before it
arrived, and that you got on the train before
you got off.
If they were travelling faster than light,
this wouldnt be true anymore. The order
could switch. So in the universe from their
point of view, you get off the train before you
get on. Or the neutrino arrives before it sets
out. This is a violation of causality. Causes
really ought to happen before effects, no
matter how fast you travel.
BROKEN THEORY
So if anything travels faster than light, some-
thing is clearly broken. Wed need a new the-
ory. Einsteins theory improved Newtons,
even though Newton still works for lots of
things. The new theory would improve rela-
tivity. It might involve extra dimensions,
which is perhaps a more scientifically
respectable way of saying hyperspace, or
something else, but it would be very excit-
ing.
So even though I would bet a lot that the
experiment is wrong, theres a part of me
still really hopes its right.
Professor Jon Butterworth is head of Physics and
Astronomy at UCL. He is a member of the High
Energy Physics group on the Atlas experiment at
Cern's Large Hadron Collider.
This is a violation of causality.
Causes really ought to
happen before effects, no
matter how fast you travel.
cityam.com/forum
JON
BUTTERWORTH
Why Albert Einstein might
have been wrong after all
and why this really matters
25
Boriss wit is a
distraction but he
appears serious
about power
Credit easing a
sign that crisis
worries Tories
T
HE Eurozone crisis deepens by the day.
Britain looks on, waiting for the nuclear
fall-out that is sure to follow the explo-
sion. Increasingly, I suspect the credit
easing plan announced by the chancellor on
Monday is a clear signal that the UK govern-
ment expects things to get much, much
worse. Ostensibly designed to help small and
medium-sized firms, it will see the govern-
ment sell more gilts and use the cash to buy
commercial bonds.
The focus on smaller firms allows the gov-
ernment to dip its toe in the water, to cross the
rubicon that divides the state and private
investors. Then, in the event of another credit
crunch, it will be able to capitalise on the bub-
ble in government debt, selling gilts at ridicu-
lously low rates and using the proceeds to
prop up UK plc, including the banks. The con-
sequences tens of billions of pounds of
potentially toxic debt squirrelled away on the
government's balance sheet could be very
nasty indeed.
LIGHT RELIEF
Amid all the doom and gloom, the Tories, who
finish their party conference in Manchester
this afternoon, need a little light relief. Boris
Johnson is only too happy to oblige. The
London mayors very presence in the conven-
tion centre has cheered things up, while his
speech was a tour de force: a raft of good gags;
rallying oratory peppered with references to
all the things Tories love; and an off-the-cuff
speaking style that is so refreshing in an age of
staged-managed politics. He got two standing
ovations.
It was David Cameron who jumped out of
his seat to lead the second standing ovation,
but in truth Boris is becoming increasingly
irksome to the Tory leadership. Before his
speech yesterday, he visited a factory in
Manchester, supposedly because it makes the
axles for Londons trains. It is virtually
unknown for a London mayor to make this
kind of regional outing, which is usually the
preserve of the Prime Minister, chancellor or
business secretary. Unless, of course, the
London mayor is campaigning for a bigger job,
like party leader or Prime Minister.
Not that Boris needs to raise his profile.
Yesterday I spotted him walking back to his
hotel with his entourage when a group of
teenagers started shouting we love you Boris!
from across the road. These weren't Tory
activists, just normal kids. The MP I was with
said Boris was the most recognisable politician
in the country, before ruminating on whether
Boris could become Tory leader. I dont doubt
that hes popular in the Tory party, but could
the public again commit to someone as eccen-
tric as the late Ted Heath? With Ed Miliband
leading the Labour party, anything is possible.
All this is conjecture unless Boris actually
runs, but Id wager he will. In his speech to the
Conservative Home activists rally another
important constituency for any would-be
leader he said his sensible, moderate
administration would take forward this great
city. Then he corrected himself. No not this
city this is Manchester. A freudian slip?
Perhaps.
Negative feedback
We are all used to flare-ups of
the sovereign debt crisis, but
this time it is threatening to
engulf the banking sector. Dexia
brought back fears of 2008.
The problem is that the banks in
the need of most state-help tend
to be based in countries with
troubled finances.
It is easy to see a vicious feed-
back loop occurring whereby
banks get in trouble because of
the sovereign debt they hold on
their balance sheets yet their
national governments are too
indebted to help them out.
Kathleen Brooks, Forex.com
Financial fatigue
The last two months of market
turmoil can be largely attributa-
ble to the inability of European
policymakers to avert a poten-
tially catastrophic sovereign
debt and banking crisis.
Unfortunately for them their
piecemeal approach, which
included laughable banking
stress tests, counterproductive
austerity programs and bailouts,
has now made the situation
much worse in the longer term.
There is now a real risk that
their inability to agree a swift
solution is acting as a cancer in
global financial markets with
respect to risk appetite, choking
off investment due to fear of a
catastrophic default as the
peripheral countries buckle
under austerity fatigue, and
countries like Germany, Finland,
Holland and Austria count the
cost with respect to bail out
fatigue.
Michael Hewson, CMC Markets
RAPID RESPONSES
In association with
DAVID CROW
IN MANCHESTER
BY JAMIE WHYTE
The Forum
W
HAT will
the gov-
e r nme nt
do to pro-
mote economic
growth? I wish
everyone would stop
asking this question.
It encourages politi-
cians to do some-
thing; it
encourages them to
deliver.
Yet the best way
the chancellor
George Osborne
could promote
growth is to stop delivering. Nothing that can
be supplied privately should be supplied by
the government be it education, healthcare
or the loans to small businesses that Osborne
promised on Tuesday. To see why, you need
only understand the deadweight cost of taxa-
tion.
Suppose you are willing to pay up to 10 an
hour to have some work done, and the cheap-
est qualified labourers are willing to work for
anything over 9 an hour. Then you should
find someone to do the job. But if incomes are
taxed at 20 per cent, the most the labourers
can earn from you is 8 an hour and they will
be unwilling to take on your job.
Sales taxes have the same effect. If I can pro-
duce a widget for 10 and you are willing to
pay 11, then a widget will be produced.
Unless, of course, a sales tax drives the price of
my widget up to 12. The greater the tax, the
greater the wedge driven between the prices
sellers are willing to accept and buyers are
willing to pay, and the greater the lost oppor-
tunities for productive activity.
Measuring the deadweight cost of a tax sys-
tem is difficult. You cannot observe all the
valuable things that are not made or done but
would have been if not for taxes. But econo-
mists are ingenious, and estimates have been
made. Most put the deadweight cost of raising
another 1 of tax revenue at between 20 and
50 pence.
This means that anything funded by taxa-
tion costs 20 to 50 per cent more than it would
if provided privately. Consider my daughters
free state education. The government taxes
me and spends 8,000 per pupil on her school.
Add on the deadweight cost of tax, however,
and the real cost is more like 11,000. If the
government cut my taxes by 8,000 and left
me to buy my daughters education privately,
she could get the same education and GDP
would be 3,000 greater.
Our coalition government is devoted to fair-
ness, by which they mean severing the connec-
tion between what people earn and what they
consume. But this mistake need not stop them
from slashing taxes. They need only stop the
money-go-round whereby people pay tax and
then get it back in the form of government
supplied services. That would allow taxes to be
roughly halved and GDP to grow by about 20
per cent.
President Obamas former chief of staff,
Rahm Emmanuel, famously said that a
reformer should never let a crisis go to waste.
Osborne should take his advice. These hard
times provide a perfect opportunity to end the
lunacy of middle-class welfare.
Jamie Whyte is a management consultant and
author of Crimes Against Logic (McGraw Hill, 2004).
The deadweight of
the money-go-round
Email: theforum@cityam.com
Twitter: @cityamforum
I
N A testimony to the US Congress yes-
terday, Federal Reserve chairman, Ben
Bernanke largely rehashed language
used in recent speeches, such as his
address at the Jackson Hole symposium in
August and his speech to the Economic
Club of Minnesota on 8 September.
However, forex market reactions leaned
more on what the Fed chairman didnt say
than what he did.
In remarks to the Congressional Joint
Economic Committee, Ben Bernanke left
the door wide open for a third round of
quantitative easing (QE3), in a climate
where the Fed chairman has received
strong criticism for his trigger-happy
approach to monetary intervention.
Attacking the Fed chairman has become a
rite of passage for Republican presidential
nomination hopefuls, and last month sen-
ior GOP lawmakers sent an open letter to
the Federal Open Market Committee
(FOMC), urging them not to act on plans for
further stimulus measures. Yesterday
Bernanke acknowledged that monetary
policy can be a powerful tool, but it is not a
panacea for the problems currently facing
the US economy.
JUSTIFYING THE TWIST
Bernanke devoted some of his time to justi-
fying Operation Twist, launched on 21
September, despite opposition from 3 of
the 10 officials on the FOMC. Financing the
purchase of longer-term bonds with the
sale of $400bn worth of short dated securi-
ties, the Fed tried to flatten the US yield-
curve and suppress interest rates. The Fed
also announced it will be reinvesting pro-
ceeds from maturing mortgage-backed
securities back into the same instruments
to try to stimulate the housing market.
However, despite these actions, the man
at the central bank in Washington DC can-
not make the man in Indiana spend, the
business in Michigan borrow or the factory
in Maryland hire (see chart, below left).
Bernanke was strong in his calls for gov-
ernment intervention in the labour mar-
kets, housing, trade, taxation and
regulation. However, as Richard Farlet,
partner in the leveraged finance practice of
Paul Hastings points out, this may be a sign
that Bernanke feels he is being backed into
a corner: I think his message is that he is
running out of bullets and the political
branches of government need to get their
act together or the economic consequences
could be Draconian.
DOLLAR BREAK
The lack of any new quick-fix monetary
Viagra being prescribed by Dr Bernanke
took the edge off the dollars recent rise.
But with the Fed chief coyly hinting that a
stimulus at a later date was not out of the
question, it is unlikely that this will be a
long-term issue. There was a brief respite
in the dollar surge as the market was
reminded that the Fed chairman is
unabashedly in favour of doing more eas-
ing if the Fed feels it is warranted, says
John Hardy, consulting FX strategist at Saxo
Bank. But with market focus being largely
on the European sovereign debt shambles,
Bernanke may choose to keep his head
below the parapet for a while, safe from
sniping by US legislators. The bar for QE3
is much higher than it was for QE2, says
Hardy. Especially now that we have to sit
back for at least a few months and watch
Operation Twist fail to revive the economy.
The Fed chairman defended Operation
Twist and the use of monetary policy to
kick start the economy, writes Craig Drake
Bernanke fails
to rule out QE3
V
ISTINGAustralia on business I am astounded
at the cost everything. For an American,
Sydney is now as prohibitively expensive as
Zurich. A simple cup of coffee and a mineral
water cost more than $12 at any sidewalk caf. The
high cost of living is a testament to the Aussies
strong appreciation over the past few years.
This week the sense of optimism has been badly
shaken down under, as the Australian dollar has
slipped deep below parity, sinking to fresh nine
month lows. Australians are wondering if the party
is coming to an end. It is hard to predict, but in my
opinion the downside risks now are certainly
greater than the upside potential.
The Aussie, as I have noted many times in the
past, is the poster child for global growth. If global
GDP expands at 2.5 per cent rate or better in
2012, then the currency will skyrocket once again
challenging its all time highs of $1.10. However,
recent the economic data across the world is
increasingly pointing to a slowdown and perhaps
even a contraction in all the major regions of the
world. Europe is hobbled by the nagging credit cri-
sis in the periphery, while US growth is hampered
by austerity measures and tepid end user demand.
All of this doom and gloom may spill over into
China, proving disastrous for the Australian econo-
my, which has become completely intertwined
with Chinese demand. The connection between the
two countries is so close that last week the RBA
opened a satellite office in Beijing to better moni-
tor economic conditions on the ground. Meanwhile
local newspapers are replete with stories of how
Australian farmers are now planting to the Chinese
food cycle as China becomes the primary export
market for Australias crops.
All of this leads me to conclude that Australians
may be too complacent about the Aussies
prospects in 2012. A poll of local analysts revealed
that the lowest call for next year was for $0.9300,
but I believe that Aussie can fall much farther than
the market consensus, perhaps even below the
$0.8000 figure if growth slows to a crawl next.
AUSSIE COULD
FALL BEYOND
EXPECTATIONS
BORIS SCHLOSSBERG
DIRECTOR OF CURRENCY RESEARCH, GFT
YOUR ONE STOP FOR
MARKET COMMENTARY.
FX360 is free to everyone. Visit fx360.com
GFT Global Research Team
Kathy Lien, Boris Schlossberg, Matthew Weller, Bradley Gareiss, and David Morrison
What you get with FX360:
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0eta||edJechn|ca|Ana|ys|s
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2011 GFT Global Markets UK Ltd. All rights reserved. GFT Global Markets UK Ltd., a subsidiary of Global Futures & Forex, Ltd.
is authorised and regulated by the Financial Services Authority. CD03UK.165.091411
Wealth Management | Foreign Exchange
26
Jan - 97 Jan - 99 Jan - 01 Jan - 03 Jan - 05 Jan - 07 Jan - 09 Jan - 11
2.2
2.1
2
1.9
1.8
1.7
ANALYSIS l US M2 velocity
M2 velocity = GDP divided by M2 Ratio
01:00 04:00 07:00 10:00 13:00 16:00 19:00
79.8
79.7
79.6
79.5
79.4
79.3
ANALYSIS l Dollar index spot
$
NEWS | IN BRIEF
WORDS OF SUPPORT
In a day that saw major US banking stocks
take a battering notably Warren Buffets
bathtub baby, the Bank of America the
markets took some reassurance that
Bernanke had not ruled out the use of fur-
ther tax-dollars to inflate the equity mar-
ket. Bernankes remarks yesterday
afternoon at the JEC in Washington acted
as a cushion or support mechanism for
global risk appetite and asset prices, and
therefore a modestly weaker dollar, says
Stephen Gallo, head of market analysis at
Schneider Foreign Exchange.
DOG WITH THE LEAST FLEAS
Whatever Bernanke may have said in yester-
days testimony, he knows, and the markets
know, that the Eurozone turmoil has the
greatest potential to rock global forex mar-
kets. The Fed chairman could have
addressed Congress in a monkey suit and
haven flows out of Europe and into the dol-
lar would have continued unabated.
Traders used the potential of additional
stimulus moves to take short-term dollar
profits, and in doing so eased over-bought
conditions. But according to Colin
Cieszynski, market analyst for CMC
Markets Canada: It does nothing to change
the greenbacks role as a haven for capital
in troubled times. Its still decisions in
Europe regarding the Greek debt problem
and how to shore up the European banking
system that matter and should play a larger
role in driving the dollar in the coming
days and weeks.
FOREX ANALYST PICKS
FOREX STRATEGIST
JOEL KRUGER
My pick: Looking to buy dollar-yen
Expertise: Technical analysis
Average time frame of trades: 1 day to 1 week
FOREX STRATEGIST
ILYA SPIVAK
My pick: Stay short euro-dollar
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
I sold euro-dollar at $1.4328 on 29 July, expecting a deepening EU
debt crisis to hit the euro and a slowing global recovery boost safe-
haven dollar demand. The pair has now surpassed my revised target
at $1.3416 and I will trail my stop-loss to trigger on a daily close
above $1.3975. However, positive divergence on relative strength
studies hints a bounce may materialise before selling resumes, which
Ill treat as an opportunity to add to the short position.
We love the idea of looking to establish a long dollar-yen position at cur-
rent levels but will have to wait for proper entry on the position as our
in-house model is warning against taking the trade right now. Although
retail positioning in long dollar-yen has scaled back dramatically in
recent days from over 10:1, the ratio is still quite high and we need to
wait for a normalisation before officially entering the position. Still we
recommend keeping a close watch for the time being.
FOREX STRATEGIST
JOHN KICKLIGHTER
My pick: Short euro-dollar and short Kiwi dollar-dollar
Expertise: Fundamental analysis with risk management
Average time frame of trades: 1 day to 1 week
Though it took a little time, euro-dollar finally slipped below that
substantial $1.3400 floor that represented the 2010-2011 mid-
point. A forgiving stop at $1.3650 is warranted and the first target
should equal risk while subsequent objectives $1.3000, and
$1.2800 for the conservative reach for more. With risk aversion
not yet in full swing, Im also looking for a long-term bearish trend
break from Kiwi dollar-dollar with a close below $0.7500.
T
HE EU must be stoking
the ire of the Bank of
Japan at this stage.
Euro-yen at 11-year
lows is begging for interven-
tion from the BOJ. Look to
buy on dips to 100.60-70.
Forex.com is currently quot-
ing 101.19-101.23.
Dollar-yen refuses to
break out from between
78.00 and 76.00 finding
the 76.00 level a firm sup-
port area. Dollar strength
over the past few weeks has
not given the same boost to
dollar-yen, and so for now
the downward trend
remains firmly in tact and a
break below 76 could trig-
ger further selling. Capital
Spreads quotes 76.66-
76.67.
Canadian dollar may have
had a fantastic run over the
last two and a half years
against the greenback, but
support now seems to be
ebbing. Seeing the Loonie
turn back into the Great
Canadian Diver may be a lit-
tle way off, but the current
IG Index offers dollar-
Canadian dollar at
Ca$1.0531-Ca$1.0535.
Last week we said sell
Aussie dollar-dollar on
approaches to parity the
same day it reached highs of
$0.9986. Yesterday it fell all
the way to lows of $0.9390.
A bounce back towards the
$0.97 region is possible, but
the overall downtrend looks
strong. Look to sell again
around $0.97. Spread Co
offers a spread on Australian
dollar-dollar of $0.9468-
$0.9470.
This weeks break below
$1..3400 in euro-dollar now
opens up the risk of a move
to this years lows at 1.2870.
CMC Markets offers euro-
dollar at $1.3202-$1.32027.
Craig Drake
THE TIPSTER
LOOK TO PROFIT FROM
JAPANESE INTERVENTION
27
Benny and the Inkjets
may be getting the old
band back together
Picture: REUTERS
Business Features| Insight
28
THE Greeks not only have mas-
sive debts but are still running big
deficits. Trapped by an artificially
strong currency, they cannot turn
these deficits into surpluses, even if
they do everything outsiders want
them to do. Their exports, priced in
euros, remain expensive. The
German government wants the
Greeks to slash the size of their gov-
ernment, but that will also slow eco-
nomic growth and reduce
tax revenues. And so one
of two things must hap-
pen. Either the
Germans must agree
to integrate Europe
fiscally, so that
Germany and
Greece bear the
same relationship to
each other as, say,
Indiana and Mississippi
the tax dollars
of ordinary
Germans would
go into a com-
mon coffer
and be used
to pay for the
lifestyle of
o r di na r y
Greeks or
t h e
G r e e k s
( a n d
prob-
ably, eventually, every non-German)
must introduce structural reform,
a euphemism for magically and rad-
ically transforming themselves into
a people as efficient and productive
as the Germans. The first solution is
pleasant for Greeks but painful for
Germans. The second solution is
pleasant for Germans but painful,
possibly even suicidal, for Greeks.
GERMAN UNEASE
The only economically plausi-
ble scenario is that the
Germans, with a bit of
help from a rapidly
shrinking population of
solvent European coun-
tries, suck it up, work
harder, and pay for every-
one else. But what is eco-
nomically plausible
appears to be politi-
cally unaccept-
able. The
German peo-
ple all
know at
least one
fact about
the euro:
t h a t
b e f o r e
t h e y
agreed
t o
trade
in their deutsche marks their lead-
ers promised them, explicitly, they
would never be required to bail out
other countries. The rule was creat-
ed with the founding of the
European Central Bank and was vio-
lated in 2010. Public opinion turns
more against the violation every day
so much so that Chancellor
Angela Merkel, who has a reputa-
tion for reading the public mood,
hasnt even bothered to try to go
before the German people to per-
suade them that it might be in their
interest to help the Greeks.
INEVITABLE RECKONING
That is why Europes money prob-
lems feel not just problematic but
intractable. Its why Greeks are now
mailing bombs to Merkel, and thugs
in Berlin are hurling stones through
the windows of the Greek consulate.
And its why European leaders have
done nothing but delay the
inevitable reckoning, by scrambling
every few months to find cash to
plug the ever growing holes in
Greece, Ireland, and Portugal, and
praying that bigger and more
alarming holes in Spain, Italy, and
even France do not reveal them-
selves.
Boomerang: The Meltdown Tour by
Michael Lewis. Published by Allen Lane
20. Out tomorrow.
Michael Lewis dissects Europes woes
An extract in which the international
bestselling author looks at the tied
fates of the German and Greek nations
IN HIS latest tour de force,
Michael Lewis looks at why
Icelanders wanted to stop fishing
and become investment
bankers, the reasons Greeks
wanted to turn their country into
a piata stuffed with cash and
allow as many citizens as possi-
ble to take a whack, and why
the Irish wanted to stop being
Irish and the Germans wanted
to be even more German.
Lewis surveys the after-effects
of the cheap credit rolling
across the planet between 2002
and 2008. Delving beyond the
financial facts into the cultural
fabric that makes these coun-
tries so different in their reac-
tion to the boom and the bust.
As with any story about
debt, the US plays a support-
ing role Lewis saves for it a
slice of his acerbic wit, as
both California and
Washington get a well-
deserved roasting.
Like other works, the facts
are cut through with
humanity, the detail with
drama and the cynicism
with a lining of optimism.
For as long as the econo-
my seesaws from indul-
gent booms to devastating
busts, we will need
Michael Lewis to point
out that the emperor is
lacking suitable attire,
and that really we should all be laugh-
ing at him it certainly beats crying.
Salomon bond salesman to acclaimed author
Greece could be
forced to go the way
of Socrates
Picture: GETTY
Boomerang: The Meltdown Tour
MICHAEL Lewis was born in New
Orleans and educated at Princeton
University and the London School of
Economics. When he was twenty-four he
started working at Salomon Brothers.
Finding the experience preposterous he
stumbled out three years later in 1988.
His bestseller, Liars Poker is widely con-
sidered the book that defined Wall Street
in the 1980s. He has written several other
admired bestsellers
including The Big Short,
Home Game, Blind Side and
Moneyball several of which
are due to be made into
films. Lewis is contributing
writer for the New York
Times Magazine and for
Vanity Fair. He is married
with three children. Words by Philip Salter
LON GD ONCE FIX AM...........1672.00 12.00
SILVER LDN FIX AM ..................29.36 -1.37
MAPLE LEAF 1 OZ ....................32.14 1.09
LON PLATINUM AM................1484.00 -36.00
LON PALLADIUM AM...............592.00 -12.00
ALUMINIUM CASH .................2119.50 -86.50
COPPER CASH ......................6794.50 -336.50
LEAD CASH...........................1999.00 -60.00
NICKEL CASH......................18100.00 -200.00
TIN CASH.............................20055.00 -790.00
ZINC CASH ............................1847.00 -57.50
BRENT SPOT INDEX................102.17 -1.13
SOYA .....................................1177.50 -1.50
COCOA..................................2575.00 -33.00
COFFEE ......................................0.00 0.00
KRUG.....................................1706.80 -2.10
WHEAT ....................................145.90 -2.25
AIR LIQUIDE........................................85.76 -0.92 100.65 80.90
ALLIANZ..............................................66.92 -1.87 108.85 56.16
ANHEUS-BUSCH INBEV ....................39.81 -0.55 46.33 33.85
ARCELORMITTAL...............................11.69 -0.46 28.55 10.47
AXA........................................................8.91 -0.66 16.16 7.88
BANCO SANTANDER...........................5.91 -0.09 9.67 5.15
BASF SE..............................................44.00 -1.05 70.22 42.19
BAYER.................................................39.49 -1.09 59.44 35.36
BBVA......................................................5.90 -0.06 9.82 4.94
BMW ....................................................45.04 -2.08 73.85 43.49
BNP PARIBAS.....................................27.18 -1.48 59.93 22.72
CARREFOUR ......................................16.74 -0.28 35.29 14.66
CRH PLC..............................................11.32 -0.58 17.40 10.28
DAIMLER.............................................30.97 -1.88 59.09 30.52
DANONE..............................................45.31 -0.50 53.16 41.92
DEU.BOERSE OFFRE ........................36.10 -1.40 55.75 35.46
DEUTSCHE BANK..............................24.64 -1.11 48.70 20.79
DEUTSCHE TELEKOM.........................8.68 -0.03 11.38 7.88
E.ON.....................................................15.85 -0.36 25.54 12.50
ENEL......................................................3.26 -0.04 4.86 2.81
ENI .......................................................12.95 -0.07 18.66 11.83
FRANCE TELECOM............................12.03 -0.12 17.45 11.12
GDF SUEZ ...........................................22.14 -0.26 30.05 18.32
GENERALI ASS...................................11.77 -0.13 17.05 10.34
IBERDROLA..........................................4.94 -0.04 6.50 4.29
INDITEX ...............................................60.92 -1.91 66.60 50.92
ING GROEP CVA...................................4.92 -0.14 9.50 4.21
INTESA SANPAOLO .............................1.11 -0.07 2.53 0.85
KON.PHILIPS ELECTR.......................12.77 -0.52 25.45 12.01
L'OREAL..............................................71.45 -1.49 91.24 68.83
LVMH....................................................97.79 -0.25 132.65 94.16
MUNICH RE.........................................88.52 -2.64 126.00 77.80
NOKIA....................................................3.98 -0.27 8.49 3.33
REPSOL YPF.......................................19.18 -0.13 24.90 17.31
RWE.....................................................26.81 -0.43 55.88 21.22
SAINT-GOBAIN...................................27.03 -1.56 47.64 26.07
SANOFI ................................................48.34 -0.67 56.82 42.85
SAP......................................................36.87 -0.61 46.15 32.88
SCHNEIDER ELECTRIC.....................38.13 -1.33 61.83 35.94
SIEMENS .............................................65.67 -1.40 99.39 62.13
SOCIETE GENERALE.........................18.04 -0.93 52.70 14.32
TELECOM ITALIA..................................0.83 0.01 1.16 0.70
TELEFONICA ......................................14.07 -0.07 19.69 12.50
TOTAL..................................................32.28 -0.27 44.55 29.40
UNIBAIL-RODAMCO SE...................129.60 -1.00 162.95 124.05
UNICREDIT............................................0.74 -0.04 2.03 0.64
UNILEVER CVA...................................23.37 -0.20 24.08 20.82
VINCI ....................................................30.58 -1.22 45.48 29.49
VIVENDI ...............................................14.92 -0.22 22.07 14.10
VOLKSWAGEN VORZ ........................88.54 -6.76 152.20 81.80
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 4944.44 -131.06 -2.58
FTSE 250 INDEX . . . . . . . . 9425.93 -324.63 -3.33
FTSE UK ALL SHARE . . . . 2557.82 -70.59 -2.69
FTSE AIMALL SH . . . . . . . . 657.74 -28.61 -4.17
DOWJONES INDUS 30 . . 10808.71 153.41 1.44
S&P 500. . . . . . . . . . . . . . . . 1123.95 24.72 2.25
NASDAQ COMPOSITE . . . 2404.82 68.99 2.95
FTSEUROFIRST 300 . . . . . . 887.77 -24.49 -2.68
NIKKEI 225 AVERAGE. . . . 8456.12 -89.36 -1.05
DAX 30 PERFORMANCE. . 5216.71 -159.99 -2.98
CAC 40 . . . . . . . . . . . . . . . . 2850.55 -76.28 -2.61
SHANGHAI SE INDEX . . . . 2359.22 -6.12 -0.26
HANG SENG. . . . . . . . . . . 16250.27 -571.88 -3.40
S&P/ASX 20 INDEX . . . . . . 2340.30 -19.20 -0.81
ASX ALL ORDINARIES . . . 3935.60 -25.10 -0.63
BOVESPA SAO PAOLO. . 50686.34 -105.19 -0.21
ISEQ OVERALL INDEX . . . 2430.12 -88.16 -3.50
STI . . . . . . . . . . . . . . . . . . . . 2531.02 -90.38 -3.45
IGBM. . . . . . . . . . . . . . . . . . . 830.26 -12.56 -1.49
SWISS MARKET INDEX. . . 5444.55 -51.14 -0.93
Price Chg %chg
3M........................................................72.01 1.08 98.19 68.63
ABBOTT LABS ...................................50.50 0.35 54.24 45.07
ALCOA ..................................................9.12 0.22 18.47 8.45
ALTRIA GROUP..................................26.54 -0.02 28.13 23.20
AMAZON.COM..................................212.50 0.52 244.00 151.40
AMERICAN EXPRESS........................43.43 -0.05 53.80 37.33
AMGEN INC.........................................54.35 0.45 61.53 47.66
APPLE...............................................372.50 -2.10 422.86 277.77
AT&T....................................................28.31 0.15 31.94 27.20
BANK OF AMERICA.............................5.76 0.23 15.31 5.13
BERKSHIRE HATAW B.......................73.17 3.11 87.65 65.35
BOEING CO.........................................59.14 0.89 80.65 56.01
BRISTOL MYERS SQUI ......................32.09 0.60 32.09 20.05
CATERPILLAR....................................72.54 1.99 116.55 67.54
CHEVRON...........................................91.48 1.60 109.94 80.41
CISCO SYSTEMS................................15.58 0.39 24.60 13.30
CITIGROUP.........................................24.39 1.28 51.50 21.40
COCA-COLA.......................................65.23 -0.19 71.77 58.52
COLGATE PALMOLIVE......................88.42 0.12 94.89 73.62
CONOCOPHILLIPS.............................62.27 1.28 81.80 56.80
CVS/CAREMARK................................33.00 0.03 39.50 29.45
DU PONT(EI) DE NMR........................40.23 1.74 57.00 37.10
EXXON MOBIL....................................72.83 1.68 88.23 61.80
GENERAL ELECTRIC.........................14.86 0.17 21.65 14.02
GOOGLE A........................................501.90 6.38 642.96 473.02
HEWLETT PACKARD.........................23.02 0.82 49.39 19.92
HOME DEPOT.....................................32.47 0.88 39.38 28.13
IBM.....................................................174.74 1.45 185.63 134.39
INTEL CORP .......................................21.22 0.60 26.78 18.77
J.P.MORGAN CHASE.........................30.26 1.61 48.36 27.85
JOHNSON & JOHNSON.....................62.17 0.09 68.05 57.50
KRAFT FOODS A................................32.86 -0.22 36.30 24.30
MC DONALD'S CORP ........................86.48 0.46 91.22 72.14
MERCK AND CO. NEW......................31.35 -0.22 37.68 29.47
MICROSOFT........................................25.34 0.81 29.46 23.65
OCCID. PETROLEUM.........................73.26 4.68 117.89 66.36
ORACLE CORP...................................28.69 0.75 36.50 24.72
PEPSICO.............................................60.45 0.16 71.89 58.50
PFIZER ................................................17.59 0.26 21.45 16.25
PHILIP MORRIS INTL .........................62.80 1.04 72.74 55.10
PROCTER AND GAMBLE ..................63.37 0.53 67.72 56.57
QUALCOMM INC ................................49.43 1.78 59.84 42.45
SCHLUMBERGER...............................59.11 1.39 95.64 54.79
TRAVELERS CIES..............................48.08 1.28 64.17 45.97
UNITED TECHNOLOGIE ....................69.54 0.18 91.83 66.87
UNITEDHEALTH GROUP...................42.78 -0.14 53.50 33.94
VERIZON COMMS ..............................36.40 0.06 38.95 31.60
WAL-MART STORES..........................52.88 0.92 57.90 48.31
WALT DISNEY CO ..............................29.86 0.86 44.34 28.19
WELLS FARGO & CO.........................24.21 1.03 34.25 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.500 0.00
LIBOR Euro - overnight ..................0.880 -0.01
LIBOR Euro - 12 months ................2.042 0.00
LIBOR USD - overnight...................0.143 0.00
LIBOR USD - 12 months.................0.875 0.01
HaIifax mortgage rate .....................3.990 0.00
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.000 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................2.780 0.01
European repo rate.........................0.764 0.00
Euro Euribor ....................................1.184 -0.01
The vix index ...................................43.95 -1.50
The baItic dry index ........................1.886 -0.01
Markit iBoxx...................................236.75 3.32
Markit iTraxx..................................206.22 5.33
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.3254 1.3257
C/ 0.8615 0.0071
C/ 101.90 0.1730
/C 1.1605 0.0007
/$ 1.5392 0.0046
/ 118.28 0.0862
FTSE 100
4944.44
131.06
FTSE 250
9425.93
324.63
FTSE ALLSHARE
2557.82
70.59
DOW
10808.71
153.41
NASDAQ
2404.82
68.99
S&P 500
1123.95
24.72
RPC Group . . . . . . . .317.5 -3.7 384.8 215.4
Smiths Group . . . . . .908.0 -47.0 1429.0 901.0
Brown (N.) Group . . .264.3 -8.0 311.2 236.0
Carpetright . . . . . . . . .495.0 0.6 835.5 475.1
Debenhams . . . . . . . . .58.6 1.3 77.4 51.2
Dignity . . . . . . . . . . . .823.0 -17.0 854.5 633.0
Dixons RetaiI . . . . . . .10.8 -0.5 28.5 10.6
DuneImGroup . . . . . .483.0 -2.0 550.0 383.9
HaIfords Group . . . . .293.5 -3.4 459.7 268.6
Home RetaiI Group . .121.7 3.1 235.0 105.1
Inchcape . . . . . . . . . .268.6 -16.3 425.4 261.1
JD Sports Fashion . .854.0 -3.0 1030.0 753.5
Kesa EIectricaIs . . . . .85.0 -1.1 174.0 80.0
Kingfisher . . . . . . . . .240.0 -8.7 287.1 217.0
Marks & Spencer G . .312.8 -5.2 427.5 301.8
Mothercare . . . . . . . .310.0 -15.0 627.5 308.8
Next . . . . . . . . . . . . .2504.0 -36.0 2649.0 1868.0
Sports Direct Int . . . .204.0 -14.5 266.2 125.5
WH Smith . . . . . . . . . .501.0 -1.5 523.0 433.8
Smith & Nephew . . . .557.0 -3.0 742.0 521.0
Synergy HeaIth . . . . .846.5 -21.5 981.0 736.0
Barratt DeveIopme . . .72.9 -3.8 119.0 67.5
BeIIway . . . . . . . . . . . .611.5 -14.0 753.5 511.0
YuIe Catto & Co . . . . .154.2 -3.8 253.0 148.0
BaIfour Beatty . . . . . .244.0 -8.6 357.3 228.6
Kier Group . . . . . . . .1247.0 -12.0 1418.0 1097.0
Drax Group . . . . . . . .459.3 -13.7 536.5 353.6
Scottish & Southe . .1283.0 -29.0 1423.0 1108.0
Domino Printing S . .434.3 -25.6 705.0 425.2
HaIma . . . . . . . . . . . . .306.3 -17.6 429.6 305.5
Laird . . . . . . . . . . . . . .133.0 -5.2 207.0 127.9
Morgan CrucibIe C . .224.0 -6.6 357.1 220.4
Oxford Instrument . .715.0 -63.5 1010.0 495.0
Renishaw . . . . . . . . . .918.0 -69.5 1886.0 903.5
Spectris . . . . . . . . . .1039.0 -91.0 1679.0 1029.0
Aberforth SmaIIer . . .508.5 -23.5 714.0 507.5
AIIiance Trust . . . . . .310.2 -9.8 392.7 308.0
Bankers Inv Trust . . .346.5 -18.1 428.0 346.5
BH GIobaI Ltd. GB .1198.0 -9.0 1210.0 1058.0
BH GIobaI Ltd. US . . . .11.7 -0.4 12.2 10.4
BH Macro Ltd. EUR . . .18.9 -0.3 20.1 15.8
BH Macro Ltd. GBP 1976.0 -19.0 2070.0 1630.0
BH Macro Ltd. USD . . .18.9 -0.2 20.1 15.8
BIackRock WorId M .574.5 -18.5 815.5 567.0
BIueCrest AIIBIue . . .167.4 -0.9 176.2 162.4
British Assets Tr . . . .109.0 -3.0 140.5 107.4
British Empire Se . . .409.9 -14.0 533.0 409.0
CaIedonia Investm .1470.0 -23.0 1928.0 1445.0
City of London In . . .258.0 -6.0 306.9 256.2
Dexion AbsoIute L . .130.0 -2.7 151.0 129.6
Edinburgh Dragon . .201.4 -5.1 262.1 200.0
Edinburgh Inv Tru . . .441.1 -8.4 492.2 414.9
EIectra Private E . . .1292.0 -63.0 1755.0 1287.0
F&C Inv Trust . . . . . .261.5 -8.3 327.9 259.0
FideIity China Sp . . . . .70.0 -1.8 128.7 68.0
FideIity European . . .912.0 -31.5 1287.0 909.0
HeraId Inv Trust . . . . .419.0 -15.1 545.5 419.0
HICL Infrastructu . . . .115.2 -0.7 121.3 112.7
Impax Environment . .88.5 -3.5 130.5 88.0
JPMorgan American .757.5 -24.0 916.0 721.5
JPMorgan Asian In . .170.1 -6.8 250.8 170.0
JPMorgan Emerging .480.1 -4.9 639.0 471.5
JPMorgan European .692.5 -35.0 983.5 692.5
JPMorgan Indian I . . .350.0 -9.4 502.0 348.9
JPMorgan Russian .420.0 -6.0 755.0 410.0
Law Debenture Cor . .323.7 -16.3 385.0 309.8
MercantiIe Inv Tr . . . .856.5 -34.0 1137.0 854.0
Merchants Trust . . . .347.0 -16.1 431.8 346.1
Monks Inv Trust . . . .298.1 -11.8 367.9 297.7
Murray Income Tru . .568.0 -18.0 673.0 561.0
Murray Internatio . . .818.5 -18.5 991.5 816.9
PerpetuaI Income . . .236.5 -6.4 276.0 232.6
PoIar Cap TechnoI . .307.0 -9.2 391.2 299.5
RIT CapitaI Partn . . .1188.0 -28.0 1334.0 1125.0
Scottish Inv Trus . . . .417.0 -16.0 524.0 417.0
Scottish Mortgage . .586.5 -24.5 781.0 580.0
SVG CapitaI . . . . . . . .187.9 -18.1 279.8 170.2
TempIe Bar Inv Tr . . .794.0 -29.0 952.0 790.0
TempIeton Emergin .497.0 -6.5 689.5 491.0
TR Property Inv T . . .150.0 -7.0 206.1 146.1
TR Property Inv T . . . .71.4 -2.9 94.0 69.5
Witan Inv Trust . . . . .401.5 -18.3 533.0 399.9
3i Group . . . . . . . . . . .185.6 -3.3 340.0 181.4
3i Infrastructure . . . . .117.8 -3.2 125.2 112.9
Aberdeen Asset Ma .167.8 -5.1 240.0 163.0
Ashmore Group . . . .306.4 -16.5 420.0 301.5
Brewin DoIphin Ho . .113.7 -4.1 185.4 113.7
CameIIia . . . . . . . . . .8901.0-199.010950.08900.0
CharIes TayIor Co . . .137.5 -4.5 198.3 122.0
City of London Gr . . . .76.3 0.0 93.6 70.0
City of London In . . .349.5 -0.5 461.5 334.0
CIose Brothers Gr . . .682.0 -4.5 888.5 656.5
CoIIins Stewart H . . . .59.0 -3.0 90.8 59.0
EvoIution Group . . . . .74.0 -4.0 94.0 62.3
F&C Asset Managem .60.0 -4.5 92.9 58.7
Hargreaves Lansdo .412.6 -35.3 646.5 402.5
HeIphire Group . . . . . . .3.2 -0.0 37.8 2.2
Henderson Group . . . .95.1 -5.7 173.1 93.4
Highway CapitaI . . . . .15.5 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .383.7 -20.5 570.5 378.6
IG Group HoIdings . .450.1 -9.4 553.0 393.6
Intermediate Capi . . .197.9 -8.2 360.3 196.0
InternationaI Per . . . .209.0 -7.5 388.8 196.5
InternationaI Pub . . . .114.4 -0.3 118.3 108.6
Investec . . . . . . . . . . .331.8 -13.5 538.0 328.5
IP Group . . . . . . . . . . . .50.3 -0.3 54.5 27.9
Jupiter Fund Mana . .190.9 -2.2 337.3 184.9
Liontrust Asset M . . . .68.0 0.0 94.3 67.0
LMS CapitaI . . . . . . . . .54.5 -3.3 64.8 44.8
London Finance & . . .22.5 -1.0 23.5 16.5
London Stock Exch .772.5 -40.5 1076.0 675.0
Lonrho . . . . . . . . . . . . .12.8 0.3 19.8 11.3
Man Group . . . . . . . . .159.1 -1.7 311.0 149.1
Paragon Group Of . .143.5 -7.6 206.1 134.6
Provident Financi . . .977.0 -19.5 1124.0 728.5
Rathbone Brothers .1001.0 -42.0 1257.0 840.5
Record . . . . . . . . . . . . .24.5 -3.8 51.0 20.3
RSM Tenon Group . . .20.8 -1.3 66.3 20.3
Schroders . . . . . . . .1220.0 -55.0 1922.0 1183.0
Schroders (Non-Vo .1009.0 -27.0 1554.0 970.0
TuIIett Prebon . . . . . .327.8 -12.9 428.6 327.5
WaIker Crips Grou . . .46.5 0.0 51.5 45.0
BT Group . . . . . . . . . .163.8 -6.8 204.1 142.9
CabIe & WireIess . . . .35.9 -1.1 57.5 31.3
CabIe & WireIess . . . .27.7 -2.2 76.9 27.6
COLT Group SA . . . .100.0 -0.1 156.2 97.5
KCOM Group . . . . . . . .67.2 -2.9 84.0 47.5
TaIkTaIk TeIecom . . .122.5 -1.5 168.3 119.8
TeIecomPIus . . . . . . .710.0 -5.0 721.0 370.0
Booker Group . . . . . . .70.4 -1.1 77.9 49.7
Greggs . . . . . . . . . . . .468.5 3.7 550.5 429.1
Morrison (Wm) Sup .284.8 -2.1 308.3 262.7
Ocado Group . . . . . . . .88.1 -11.0 285.0 87.2
Sainsbury (J) . . . . . . .274.7 -6.4 391.5 263.5
Tesco . . . . . . . . . . . . .380.1 9.6 440.7 356.3
Associated Britis . . .1100.0 -3.0 1182.0 940.0
Cranswick . . . . . . . . .631.0 6.0 896.0 588.5
Dairy Crest Group . . .336.7 -11.8 424.9 325.0
Devro . . . . . . . . . . . . .245.0 2.2 296.9 218.0
Premier Foods . . . . . . . .9.4 -0.5 35.1 8.7
Tate & LyIe . . . . . . . . .617.0 -15.5 656.0 468.4
UniIever . . . . . . . . . .1986.0 -17.0 2081.0 1777.0
Mondi . . . . . . . . . . . . .450.1 -22.7 664.0 446.7
Centrica . . . . . . . . . . .297.0 -3.1 345.8 282.6
InternationaI Pow . . .312.4 1.2 448.6 279.4
NationaI Grid . . . . . . .624.5 -15.5 647.0 530.0
Northumbrian Wate .463.2 -0.3 469.5 295.5
Pennon Group . . . . . .679.0 -8.0 737.5 580.0
Severn Trent . . . . . .1530.0 -13.0 1548.0 1307.0
United UtiIities . . . . .621.0 -4.5 631.5 543.5
Cookson Group . . . . .395.8 -19.6 724.5 385.9
DS Smith . . . . . . . . . .164.4 -10.4 266.2 154.0
Rexam . . . . . . . . . . . .299.8 -8.0 400.0 296.7
BAE Systems . . . . . .254.0 -6.0 369.9 248.1
Chemring Group . . . .519.0 -9.5 736.5 485.0
Cobham . . . . . . . . . . .168.5 -4.5 245.6 167.3
Meggitt . . . . . . . . . . . .322.3 -8.1 397.6 296.2
QinetiQ Group . . . . . .113.5 -3.1 136.3 96.7
RoIIs-Royce Group . .571.0 -27.0 665.0 557.5
Senior . . . . . . . . . . . . .137.0 -5.6 190.6 128.6
UItra EIectronics . . .1532.0 11.0 1895.0 1305.0
Hansen Transmissi . . .65.0 -0.2 65.7 32.5
GKN . . . . . . . . . . . . . .157.0 -11.0 245.0 153.0
BarcIays . . . . . . . . . . .144.4 -11.9 333.6 138.9
HSBC HoIdings . . . . .473.6 -14.1 730.9 466.5
LIoyds Banking Gr . . .31.8 -1.7 76.4 27.6
RoyaI Bank of Sco . . .21.5 -0.9 49.5 19.7
Standard Chartere .1169.5 -60.0 1950.0 1141.5
AG Barr . . . . . . . . . .1219.0 -5.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .310.4 -4.3 503.5 289.9
Diageo . . . . . . . . . . .1209.5 -25.0 1307.0 1092.0
SABMiIIer . . . . . . . . .2005.0 -60.0 2340.0 1963.5
AZ EIectronic Mat . . .206.1 -15.5 338.1 203.6
Croda Internation . .1597.0 -66.0 2081.0 1367.0
EIementis . . . . . . . . . .107.5 -7.3 187.4 99.6
Johnson Matthey . .1523.0 -58.0 2119.0 1484.0
Victrex . . . . . . . . . . .1025.0 -92.0 1590.0 1015.0
Price Chg High Low
BerkeIey Group Ho .1145.0 -43.0 1299.0 789.5
Bovis Homes Group .402.9 -6.6 464.7 326.5
Persimmon . . . . . . . .440.0 -9.5 502.5 336.5
Reckitt Benckiser . .3286.0 -44.0 3648.0 3015.0
Redrow . . . . . . . . . . . .110.0 -2.2 139.0 98.4
TayIor Wimpey . . . . . . .34.0 -0.5 43.3 22.3
Bodycote . . . . . . . . . .225.6 -15.8 397.7 223.3
Charter Internati . . . .847.0 -11.0 876.5 538.5
Fenner . . . . . . . . . . . .280.0 -26.1 422.5 237.2
IMI . . . . . . . . . . . . . . . .636.5 -49.0 1119.0 625.0
MeIrose . . . . . . . . . . .268.0 -16.3 365.4 265.4
Northgate . . . . . . . . . .231.5 -8.8 346.7 202.0
Rotork . . . . . . . . . . . .1511.0 -41.0 1895.0 1498.0
Spirax-Sarco Engi . .1709.0 -82.0 2063.0 1649.0
Weir Group . . . . . . .1375.0-104.0 2218.0 1332.0
Ferrexpo . . . . . . . . . . .238.7 -23.4 499.0 237.3
TaIvivaara Mining . . .238.9 -16.5 622.0 238.9
BBAAviation . . . . . . .162.6 -3.0 240.8 156.0
Stobart Group Ltd . . .126.6 -2.3 163.6 122.0
AdmiraI Group . . . . .1227.0 -31.0 1754.0 1206.0
AmIin . . . . . . . . . . . . .270.6 -9.4 427.0 270.2
Huntsworth . . . . . . . . .60.5 -3.5 86.0 56.0
Informa . . . . . . . . . . . .313.9 -14.8 461.1 311.9
ITE Group . . . . . . . . . .157.7 -2.0 258.2 155.0
ITV . . . . . . . . . . . . . . . . .55.4 -3.3 93.5 51.7
Johnston Press . . . . . . .4.8 0.3 14.5 4.4
MecomGroup . . . . . .146.5 -5.5 310.0 135.3
Moneysupermarket. . .96.5 -3.6 120.4 75.7
Pearson . . . . . . . . . .1130.0 -7.0 1207.0 926.0
PerformGroup . . . . .200.0 -20.0 234.5 150.0
Reed EIsevier . . . . . .488.9 -9.2 590.5 461.3
Rightmove . . . . . . . .1180.0 -20.0 1307.0 736.5
STV Group . . . . . . . . .104.5 0.0 168.0 90.3
Tarsus Group . . . . . .135.4 0.6 165.0 112.5
Trinity Mirror . . . . . . . .41.0 0.5 108.0 37.5
UBM . . . . . . . . . . . . . .429.2 -12.8 725.0 416.0
UTV Media . . . . . . . . .122.6 -1.9 151.0 101.0
WiImington Group . . .87.1 -4.6 183.0 82.5
WPP . . . . . . . . . . . . . .578.0 -16.5 846.5 570.5
YeII Group . . . . . . . . . . .3.8 -0.2 16.1 3.6
African Barrick G . . .528.5 10.5 638.0 393.5
AIIied GoId Minin . . .157.1 -16.9 281.3 34.4
AngIo American . . .2138.5 -75.5 3437.0 2065.0
AngIo Pacific Gro . . .237.9 -9.6 369.3 226.8
Antofagasta . . . . . . . .900.5 -20.5 1634.0 864.0
Aquarius PIatinum . .163.1 -5.9 419.0 157.2
BeazIey . . . . . . . . . . . .113.9 -2.6 139.2 109.6
CatIin Group Ltd. . . .359.6 -10.6 421.4 325.0
Hiscox Ltd. . . . . . . . . .367.8 -5.1 424.7 340.5
Jardine LIoyd Tho . . .620.0 -14.0 709.0 566.0
Lancashire HoIdin . . .684.5 -9.0 733.5 529.0
RSA Insurance Gro . .106.0 -3.1 143.5 104.7
Aviva . . . . . . . . . . . . . .275.3 -13.3 477.9 269.5
LegaI & GeneraI G . . . .89.8 -5.7 123.8 86.2
OId MutuaI . . . . . . . . . .98.1 -5.4 145.2 97.1
Phoenix Group HoI . .455.1 -19.7 699.5 455.1
PrudentiaI . . . . . . . . .509.0 -33.5 777.0 494.5
ResoIution Ltd. . . . . .233.0 -12.6 316.1 211.3
St James's PIace . . . .295.2 -22.7 376.0 236.2
Standard Life . . . . . . .190.2 -6.0 244.7 172.0
4Imprint Group . . . . .209.0 -1.0 295.0 200.0
Aegis Group . . . . . . .119.4 -4.4 163.5 119.1
BIoomsbury PubIis . . .95.1 -3.4 138.0 95.0
British Sky Broad . . .639.0 -18.0 850.0 618.5
Centaur Media . . . . . . .37.5 -2.5 73.0 36.0
Chime Communicati .189.5 -0.3 298.5 173.0
Creston . . . . . . . . . . . .72.0 -5.0 121.0 70.0
DaiIy MaiI and Ge . . .347.9 -9.8 594.5 343.4
Euromoney Institu . .590.0 -13.0 736.0 522.5
Future . . . . . . . . . . . . . . .9.9 0.1 30.0 9.5
Haynes PubIishing . .235.0 0.0 257.0 202.5
BHP BiIIiton . . . . . . .1667.0 -43.0 2631.5 1624.5
Centamin Egypt Lt . . .91.9 -5.1 197.1 89.1
Eurasian NaturaI . . .522.0 -29.5 1125.0 509.0
FresniIIo . . . . . . . . . .1499.0-105.0 2150.0 1223.0
GemDiamonds Ltd. .202.7 -5.3 306.0 179.8
GIencore Internat . . .397.0 6.9 531.1 348.0
HochschiId Mining . .397.0 -21.0 680.0 386.0
Kazakhmys . . . . . . . .730.0 -33.0 1671.0 700.0
Kenmare Resources . .32.7 -0.9 59.9 17.2
Lonmin . . . . . . . . . . . .974.5 -54.5 1983.0 948.0
New WorId Resourc .410.5 -24.9 1060.0 405.1
PetropavIovsk . . . . . .543.5 -42.5 1165.0 538.0
RandgoId Resource 6125.0-395.0 7215.0 4425.0
Rio Tinto . . . . . . . . .2712.5-107.0 4712.0 2636.5
Vedanta Resources .948.0 -62.0 2559.0 906.5
Xstrata . . . . . . . . . . . .764.0 -26.9 1550.0 715.1
Inmarsat . . . . . . . . . . .473.4 -17.7 719.5 389.7
Vodafone Group . . . .166.7 -1.9 182.8 155.1
Genesis Emerging . .430.0 -7.5 568.0 424.9
Afren . . . . . . . . . . . . . . .73.6 -5.9 171.2 73.2
BG Group . . . . . . . . .1161.5 -72.5 1564.5 1144.0
BP . . . . . . . . . . . . . . . .372.0 -14.9 509.0 363.2
Cairn Energy . . . . . . .261.4 -3.6 469.7 255.6
EnQuest . . . . . . . . . . . .86.6 -3.4 158.5 86.2
Essar Energy . . . . . .237.7 -8.8 589.5 235.1
ExiIIon Energy . . . . . .184.2 -15.3 469.7 183.0
Heritage OiI . . . . . . . .217.7 -6.6 486.0 190.0
Ophir Energy . . . . . . .231.9 -35.4 299.0 184.5
Premier OiI . . . . . . . . .338.7 -5.3 535.0 310.0
RoyaI Dutch SheII . .1928.5 -37.5 2326.5 1883.5
RoyaI Dutch SheII . .1941.0 -37.5 2336.0 1865.5
SaIamander Energy .184.6 -4.9 317.6 182.3
Soco Internationa . . .304.0 -10.6 454.7 279.8
TuIIow OiI . . . . . . . . .1242.0 -58.0 1493.0 945.5
Amec . . . . . . . . . . . . .740.5 -50.0 1251.0 733.0
Hunting . . . . . . . . . . .530.0 -39.0 817.0 527.0
Kentz Corporation . .429.1 -18.9 494.5 275.5
LampreII . . . . . . . . . . .228.7 -20.2 395.2 226.8
Petrofac Ltd. . . . . . .1108.0 -57.0 1685.0 1086.0
Wood Group (John) .469.9 -42.6 715.8 430.5
Burberry Group . . . .1113.0 21.0 1600.0 959.5
PZ Cussons . . . . . . . .323.1 -11.7 409.0 320.5
Supergroup . . . . . . .1005.0 -21.0 1820.0 818.5
AstraZeneca . . . . . .2814.5 -51.5 3359.0 2543.5
BTG . . . . . . . . . . . . . .238.0 -12.6 309.7 210.1
Genus . . . . . . . . . . . .1012.0 -25.0 1111.0 795.0
GIaxoSmithKIine . . .1312.0 -17.0 1385.0 1127.5
Hikma Pharmaceuti .566.5 3.0 900.0 555.5
Shire PIc . . . . . . . . . .1883.0 -89.0 2136.0 1405.0
CapitaI & Countie . . .158.1 -6.9 203.7 132.4
Daejan HoIdings . . .2426.0 -34.0 2954.0 2282.0
F&C CommerciaI Pr . .94.0 -1.5 108.0 88.0
Grainger . . . . . . . . . . . .77.3 -6.4 133.2 77.3
London & Stamford .116.0 -1.0 140.0 112.9
SaviIIs . . . . . . . . . . . . .256.2 -24.8 427.1 254.6
UK CommerciaI Pro . .76.0 -1.0 85.5 70.4
Unite Group . . . . . . . .156.8 -6.9 229.8 151.7
Big YeIIow Group . . .235.0 -2.9 353.3 231.3
British Land Co . . . . .452.0 -16.8 629.5 450.9
CapitaI Shopping . . .307.6 -11.0 424.8 296.4
Derwent London . . .1400.0 -28.0 1880.0 1386.0
Great PortIand Es . . .317.4 -13.6 445.0 317.3
Hammerson . . . . . . . .353.0 -13.3 490.9 351.5
Hansteen HoIdings . . .72.0 -2.3 89.5 70.0
Land Securities G . . .616.0 -12.0 885.0 610.0
SEGRO . . . . . . . . . . . .210.1 -6.9 331.3 208.1
Shaftesbury . . . . . . . .445.2 -11.7 539.0 431.7
Autonomy Corporat 2550.0 1.0 2553.7 1271.0
Aveva Group . . . . . .1298.0 -55.0 1799.0 1292.0
Computacenter . . . . .359.9 -17.0 490.0 300.0
Fidessa Group . . . . .1444.0-116.0 2109.0 1409.0
Invensys . . . . . . . . . . .199.6 -16.8 364.3 196.9
Logica . . . . . . . . . . . . .75.1 -4.5 147.2 73.9
Micro Focus Inter . . .303.9 -18.1 426.2 239.4
Misys . . . . . . . . . . . . .216.8 -1.9 420.2 212.7
Sage Group . . . . . . . .249.3 -7.8 302.0 231.7
SDL . . . . . . . . . . . . . . .607.5 -32.5 711.5 555.0
TeIecity Group . . . . . .575.0 1.0 583.5 430.0
Aggreko . . . . . . . . . .1522.0 -83.0 2034.0 1394.5
Ashtead Group . . . . .124.3 -6.2 207.9 99.4
Atkins (WS) . . . . . . . .528.5 -13.0 820.0 490.2
Babcock Internati . . .657.5 -9.5 733.0 513.5
Berendsen . . . . . . . . .402.7 -25.7 568.0 391.3
BunzI . . . . . . . . . . . . .761.5 -11.0 812.5 676.5
Cape . . . . . . . . . . . . . .414.6 -21.3 591.5 347.5
Capita Group . . . . . . .693.0 -18.0 794.5 635.5
CariIIion . . . . . . . . . . .323.7 -4.6 403.2 298.8
De La Rue . . . . . . . . .830.0 -13.5 853.5 549.5
EIectrocomponents .182.2 -5.8 294.9 179.4
Experian . . . . . . . . . . .700.0 -7.0 833.5 665.0
FiItrona PLC . . . . . . . .316.0 -19.0 385.5 227.5
G4S . . . . . . . . . . . . . . .263.7 -0.2 291.0 237.7
Hays . . . . . . . . . . . . . . .66.6 -3.4 133.6 66.0
Homeserve . . . . . . . .455.4 -9.1 532.0 408.0
Howden Joinery Gr . . .98.9 -3.5 127.5 75.4
Interserve . . . . . . . . . .298.0 -7.2 341.3 183.5
Intertek Group . . . . .1744.0 -77.0 2148.0 1715.0
MichaeI Page Inte . . .348.0 -19.3 567.0 337.1
Mitie Group . . . . . . . .223.6 -12.7 244.0 191.3
Premier FarneII . . . . .144.5 -6.1 308.8 143.8
Regus . . . . . . . . . . . . . .64.5 -4.1 119.0 63.2
RentokiI InitiaI . . . . . . .66.4 -4.2 104.9 65.8
RPS Group . . . . . . . . .156.6 -9.4 253.0 156.6
Serco Group . . . . . . .495.6 -11.4 633.0 489.5
Shanks Group . . . . . .108.0 1.7 130.9 102.6
SIG . . . . . . . . . . . . . . . .83.8 -5.8 153.5 82.0
SThree . . . . . . . . . . . .229.7 -4.2 447.6 213.2
Travis Perkins . . . . . .722.0 -18.0 1127.0 708.5
WoIseIey . . . . . . . . .1516.0 -20.0 2261.0 1404.0
ARM HoIdings . . . . . .538.5 -1.5 651.0 338.9
CSR . . . . . . . . . . . . . .195.0 -9.2 447.0 194.0
Imagination Techn . .410.0 -15.3 502.0 296.9
Pace . . . . . . . . . . . . . . .88.1 -5.8 231.8 87.5
Spirent Communica .109.5 -4.7 160.3 109.5
British American . .2728.5 -31.5 2871.0 2282.5
ImperiaI Tobacco . .2140.0 -38.0 2231.0 1784.0
Betfair Group . . . . . . .660.5 -60.0 1550.0 567.0
Bwin.party Digita . . . .113.8 -4.5 289.1 100.6
CarnivaI . . . . . . . . . .1923.0 -44.0 3153.0 1742.0
Compass Group . . . .512.5 -5.0 612.0 508.0
Domino's Pizza UK . .422.1 -23.2 586.0 377.0
easyJet . . . . . . . . . . . .338.8 -5.3 479.0 301.0
FirstGroup . . . . . . . . .301.8 -11.6 412.6 301.2
Go-Ahead Group . . .1271.0 -47.0 1598.0 1085.0
Greene King . . . . . . .423.2 -14.5 518.0 410.0
InterContinentaI . . . .973.0 -44.0 1435.0 953.0
InternationaI Con . . .149.3 -5.2 305.0 141.6
JD Wetherspoon . . . .388.9 -6.4 468.3 386.3
Ladbrokes . . . . . . . . .114.0 -6.2 155.3 113.3
Marston's . . . . . . . . . . .89.8 -2.8 117.1 87.1
MiIIennium& Copt . .375.6 -20.9 600.5 370.5
MitcheIIs & ButIe . . . .233.3 -1.6 361.0 216.4
NationaI Express . . .219.6 -9.5 270.2 216.1
Rank Group . . . . . . . .117.3 1.3 153.7 109.5
Restaurant Group . . .268.2 -7.1 335.0 254.9
Stagecoach Group . .238.4 -5.7 268.5 182.1
Thomas Cook Group .36.1 -2.4 204.8 33.7
TUI TraveI . . . . . . . . . .148.9 0.2 271.9 137.2
Whitbread . . . . . . . .1557.0 -27.0 1887.0 1409.0
WiIIiamHiII . . . . . . . . .219.8 -5.3 237.3 155.5
Abcam . . . . . . . . . . . .350.0 -7.0 460.0 307.0
AIbemarIe & Bond . .323.5 -15.0 400.1 272.0
Amerisur Resource . . . .9.5 -1.0 29.0 9.2
Andor TechnoIogy . .502.0 -30.0 685.0 340.0
ArchipeIago Resou . . .64.8 2.3 79.0 32.3
ASOS . . . . . . . . . . . .1310.0-118.0 2468.0 1111.0
AureIian OiI & Ga . . . .16.5 -0.5 92.0 16.0
Avanti Communicat .259.3 -4.3 735.0 240.7
Avocet Mining . . . . . .213.8 -10.3 286.8 169.5
BIinkx . . . . . . . . . . . . .135.3 -11.0 158.0 70.5
Borders & Souther . . .43.8 0.0 73.0 42.3
BowLeven . . . . . . . . . .74.5 -12.0 398.0 73.8
Brooks MacdonaId 1205.0 -42.5 1372.5 907.5
Cove Energy . . . . . . . .66.8 -5.5 112.8 61.0
Daisy Group . . . . . . .109.8 -1.6 127.0 88.0
EMIS Group . . . . . . . .526.0 -3.5 580.0 375.0
Encore OiI . . . . . . . . . .45.3 -4.3 151.5 40.8
Faroe PetroIeum . . . .130.0 -9.5 218.3 127.3
GuIfsands PetroIe . . .185.0 -2.3 401.5 142.5
GWPharmaceuticaI . .91.8 -1.5 130.0 83.0
H&T Group . . . . . . . . .331.5 4.8 395.0 277.0
Hamworthy . . . . . . . .505.0 3.0 705.0 373.8
Hargreaves Servic . .975.0 5.0 1078.0 676.0
HeaIthcare Locums . . . .5.0 -0.1 5.1 4.0
Immunodiagnostic . .980.5 -19.5 1218.0 768.5
ImpeIIamGroup . . . .321.5 -0.5 387.5 137.5
James HaIstead . . . . .431.0 20.8 495.0 345.5
KaIahari MineraIs . . .213.0 -4.0 301.0 142.0
London Mining . . . . .292.3 -2.8 436.5 281.0
Lupus CapitaI . . . . . . .96.5 2.3 150.0 86.0
M. P. Evans Group . .395.0 0.0 500.5 371.0
Majestic Wine . . . . . .415.3 -16.5 510.0 330.0
May Gurney Integr . .265.0 0.0 295.0 189.5
Monitise . . . . . . . . . . . .34.0 -0.3 39.0 18.5
MuIberry Group . . . .1295.0-100.0 1920.0 395.0
Nanoco Group . . . . . . .50.3 -0.3 115.8 49.5
NauticaI PetroIeu . . .258.0 -24.8 547.0 223.5
NichoIs . . . . . . . . . . . .522.0 -6.5 579.0 410.0
Numis Corporation . . .92.0 2.0 137.8 89.0
Pan African Resou . . .11.5 0.0 14.5 8.5
Patagonia GoId . . . . . .48.0 -5.0 70.0 20.3
Prezzo . . . . . . . . . . . . .56.5 -1.5 71.5 53.0
Pursuit Dynamics . . .164.0 -1.0 700.0 155.0
Rockhopper ExpIor .165.0 -17.8 460.0 141.0
RWS HoIdings . . . . . .440.0 0.0 479.8 266.5
Songbird Estates . . . .111.8 -3.3 160.3 110.0
VaIiant PetroIeum . . .459.0 -1.0 761.5 435.0
Young & Co's Brew . .586.0 -20.5 712.0 530.0
Home RetaiI Group . .121.7 2.6
Tesco . . . . . . . . . . . . .380.1 2.6
Debenhams . . . . . . . . .58.6 2.2
African Barrick Go . .528.5 2.0
Burberry Group . . . .1113.0 1.9
GIencore Internati . . .397.0 1.8
Shanks Group . . . . . .108.0 1.6
Rank Group . . . . . . . .117.3 1.1
Cranswick . . . . . . . . .631.0 1.0
Devro . . . . . . . . . . . . .245.0 0.9
Ophir Energy . . . . . . .231.9 -13.2
Ocado Group . . . . . . . .88.1 -11.1
AIIied GoId Mining . .157.1 -9.7
Perform Group . . . . .200.0 -9.1
Ferrexpo . . . . . . . . . .238.7 -8.9
SaviIIs . . . . . . . . . . . .256.2 -8.8
SVG CapitaI . . . . . . . .187.9 -8.8
Fenner . . . . . . . . . . . .280.0 -8.5
Betfair Group . . . . . . .660.5 -8.3
Wood Group (John) .469.9 -8.3
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
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Tsy 3.250 11 . . . . .100.34 0.00 103.1 100.3
Tsy 5.000 12 . . . .101.86 -0.01 106.2 101.8
Tsy 5.250 12 . . . .103.12 -0.02 107.6 103.1
Tsy 9.000 12 . . . .108.74 0.00 114.9 106.5
Tsy 4.500 13 . . . .105.54 -0.02 108.8 105.5
Tsy 2.500 13 . . . .283.05 -0.02 287.7 277.6
Tsy 8.000 13 . . . . .114.50 0.00 120.7 114.5
Tsy 5.000 14 . . . . .112.21 0.01 114.1 109.2
Tsy 4.750 15 . . . . .114.41 0.10 114.8 108.6
Tsy 8.000 15 . . . .128.35 0.10 131.3 123.7
Tsy 7.750 15 . . . .101.50 0.00 109.0 101.5
Tsy 4.000 16 . . . . .113.00 0.22 113.4 104.9
Tsy 2.500 16 . . . .339.17 0.11 341.0 310.2
Tsy 8.750 17 . . . .140.72 0.30 142.1 132.9
Tsy 12.000 17 . . .123.86 0.00 134.1 123.9
Tsy 1.250 17 . . . . .114.84 0.19 115.5 106.7
Tsy 5.000 18 . . . .121.00 0.36 121.2 109.7
Tsy 4.500 19 . . . . .118.84 0.50 119.1 105.4
Tsy 3.750 19 . . . . .113.52 0.57 113.9 99.4
Tsy 2.500 20 . . . .354.61 0.29 356.3 312.4
Tsy 4.750 20 . . . .121.36 0.64 121.7 106.6
Tsy 8.000 21 . . . .151.79 0.63 152.4 133.8
Tsy 4.000 22 . . . . .115.56 0.91 116.1 99.0
Tsy 1.875 22 . . . .124.74 0.50 125.6 111.3
Tsy 2.500 24 . . . .318.33 0.54 320.1 273.5
Tsy 5.000 25 . . . .126.91 1.02 127.6 107.4
Tsy 4.250 27 . . . . .118.13 1.28 118.6 97.9
Tsy 1.250 27 . . . .120.06 0.91 120.8 104.6
Tsy 6.000 28 . . . .142.93 1.24 143.6 119.5
Tsy 4.750 30 . . . .125.63 1.45 126.0 103.0
Tsy 4.125 30 . . . .304.14 0.78 305.8 261.2
Tsy 4.250 32 . . . . .117.85 1.57 118.3 96.0
Tsy 4.250 36 . . . . .117.55 1.83 118.0 95.0
Tsy 4.750 38 . . . .126.90 1.91 127.5 102.8
Tsy 4.500 42 . . . .123.00 2.10 123.0 98.9
% %
"645*/3&&%$06,
SALE
NOW ON - INSTORE & ONLINE
Wealth Management
Lifestyle | Motoring
WORDS BY
RYAN BORROFF
stands up rather well. Its comfortable,
characterful and likeable. It shouldnt
work but somehow it does. Rather well,
in fact.
USED CAR PRICES COULD RISE
According to a report by car remarketing company BCA, the fall in
new vehicle sales could drive the price of used cars up. Around
500,000 fewer new cars have been sold since the economic crash
of 2008, which means there are fewer second-hand models coming
on the market, driving up prices.
CAR TALK BY RYAN BORROFF
LIMITED EDITION MINIS
Mini has introduced 2,012 limited edition models to celebrate the
London 2012 Olympic Games. The cars come in red, white or blue
and have the London 2012 Olympic logo on the roof and seats, a
single sport stripe running over the car and unique grey alloy
wheels. Inside, Londons skyline is etched on the dashboard.
SKODA CITIGO
koda has unveiled its new small, four-seater Citigo city car.
Powered by a 1.0-litre, three-cylinder petrol engine with a choice of
two power outputs 60PS (62.8mpg, 105g CO2/km) and 77PS
(60.1mpg, 108g CO2/km), it comes with three or five doors. Sales
begin in the UK next year.
Chryslers Ypsilon does premium
The Chrysler Ypsilon: distinctive and stylish.
W
HILE scrolling through the
radio, inside the new Chrysler
Ypsilon Im driving, I find one
of the station presets tuned to
Radio Italia. Its an unusual choice and a
reminder of this cars roots. Its possible
you havent heard of the Ypsilon. It has
never been sold in the UK, and elsewhere
it wears a Lancia badge, a brand that
pulled out of the British market years
ago.
But now you can buy an Ypsilon
because Chrysler, the American car
brand better known in the UK for its
large Voyager MPV and powerful 300C
saloon, is under Fiat Groups ownership.
This compact five-door supermini joins
the same segment as rivals including
Fords Fiesta and VWs Polo, although its
real competitors are more likely to be
Mini and the Mercedes-Benz A-Class.
Because, actually, the Chrysler Ypsilon is
a premium car. Chryslers marketing peo-
ple use the term luxury, a word so over-
used in the car market that it is fast
becoming as redundant as deluxe did
in the hotel industry.
Though the Ypsilon is certainly premi-
um. It brings some of the features and
quality of larger cars and packages them
in a segment that more commonly does-
nt do premium so well. Which immedi-
ately makes it quite an unusual car. Its
certainly unusual to look at. Chrysler is
hoping to attract hip, young urbanites,
commuters and downsizing empty-
nesters with the Ypsilon, all attracted by
its distinctive and stylish looks. The car is
quite tall but has been given a sporty
coupe-like shape thanks to the hidden
rear door handles which help to give the
car the appearance of a three-door.
Despite this, I cant quite decide if it is to
my taste or not.
Were driving the 95bhp 1.3 Multijet
turbo diesel model, a version that should
do well in the UK as its high fuel econo-
my of 74.3mpg (combined) and low emis-
sions of just 99g/km of CO2 are
fantastically good and will make it very
economical to run. First impressions are
good. Unusually, you sit quite high up
and the gear lever is on the dash, but
The Italian car with
the American badge
rides well, despite the
UKs bumpy roads
THE VERDICT:
DESIGN hhhhi
PERFORMANCE hhhii
PRACTICALITY hhhii
VALUE FOR MONEY hhhii
THE FACTS: CHRYSLER
YPSILON 1.3 MULTIJET
PRICE: TBA
0-62MPH: 11secs
TOP SPEED: 114mph
CO2 G/KM: 99g/km
MPG COMBINED: 74.3mpg
theres no doubt the interior feels large
and spacious and its a very nice place to
be. The cabin is dominated by the unusu-
ally large instrument binnacle that rises
from the soft-touch dash and wins no
awards for subtleness. However, its
attractive enough and does mean the
instruments are easy to read. Elsewhere
its all leather, chrome and lacquered
piano black trim. But the premium feel is
let down in places, such as the flimsy
interior over the dashboard and the gear
knob which feels plasticky. On the road
the car feels sprightly although the ride
is soft rather than smooth and can jar
over potholes, which can feel a little
uncomfortable. We found the gear
change to be a little floppy and the steer-
ing light but the car is agile enough.
For an Italian car with an American
badge being driven on bumpy UK roads it
was never engineered for, the Ypsilon
A
S someone whose job description
includes reviewing restaurants, I
admit it: Im spoiled. Sure, its not all
perfect foie gras and caviar washed
down with Dom Perignon. But over time,
you clock up a lot of great food because
inevitably, the job includes eating at the
very best as well as the not-so-good.
I tell you this to provide context for the
level of blown away-ness I felt after eating at
the French Laundry at Harrods. What this
means is that Thomas Keller, Americas
most revered and decorated chef and the
man behind the legendary three-Michelin
star French Laundry near San Francisco and
triple-starred Per Se in New York, is as good
as his gastronomic halo would have you
believe. This is the best French food ramped
up to hyper-brilliance by the American
touch smores (campfire classic of
Hersheys chocolate and bonfired marsh-
mallows between sweet Graham crackers);
popcorn, blt and grilled cheese sandwich-
es are part of a playful theme of retro
American deliciousness that is wound
through the superbly accomplished, Gallic-
style jellies, foams, brioches and ways with
foie gras.
In London for just ten days from 1-10
October Keller has literally shipped the
French Laundry here, from its staff to the
mini radishes and carrots grown in the
restaurants garden. Zut, you say, the food-
miles! But Keller isnt interested in this line
of thought when I ask if people object to
his flying radishes in from California and
lobster from Halifax, he gets hot under the
collar. I cant get into that, he says, but
makes clear in every way that his relation-
ships with foragers and farmers are the
mainstay of the French Laundry. Worry
about carbon footprint if you want, but
spare a thought for the rural tomato grow-
ers who find their livelihood in Kellers
patronage.
I am with Keller on this, so the only
twinge I felt eating at the popup was the
futile longing for a permanent French
Laundry outpost in London (call it London
Rain-Soaked Clothes?). But unlike Pierre
Koffman, who opened up shop at the
Berkeley after a very popular stint on
Selfridges rooftop, the really rather hand-
some Keller says with a refreshing lack of
PR-trained obfuscation that London is not
on the cards. Theres nothing for me to
gain by opening outside America, he tells
us after lunch. The truth of his statement is
glaring: we need him a lot more than he
needs us.
Now, to lunch. At Harrods (unlike in
California), there is one menu. And because
Keller knows best about food, its a joy being
relieved of choice. The menu glints with
delights aplenty but the fun starts surrepti-
tiously, in the form of up to six freestyle
tricks from the kitchen. We were blown
away before the listed meal started usual-
ly its an amuse bouche or two, if youre
lucky, but we had steaming bowls of chest-
nut custard and foie gras with hot truffle
cream poured over, served in a champagne
bowl with a glowing ember of applewood
bacon at its core that gave off the exact
aroma of the Vermont campfires of my
youth. We had monkfish liver in a fudge-
like ball of richness sunk in a neon green
Japanese seaweed gel that was creamy but
full of iodine spike too.
Dishes weave on and off the menu in
some cases at the same time. At one point
my companion Lucie had the menus oys-
ter and pearls (Maldon oyster in a tapioca
broth with white sturgeon caviar) while I
had a tiny wheel of smoked fish in an equal-
ly dazzling broth that wasnt listed. Next, I
had salad of Hawaiian hearts of peach
palm off the menu medjool date puree,
coconut, slivers of radish and carrots
while she had beautifully delicate, chicory-
coloured curlicues with curd.
I was particularly ravished by chowder
again reminding me of the New England
clam chowder of my youth. A far cry from
those big bowls of cream-loaded clam broth
served with bags of salty crackers in road-
side clamshops, this was a deeply luxurious
preparation with a sashimi-soft rhomboid
of Sacramento river sturgeon at its centre,
and razor clams. Typical of the menus play-
ful Americana, the dish paid homage to its
rough n ready coastal origins with a tiny
little oyster cracker perched on top.
The lobster imported from Nova Scotia
was worth every food mile warm, silky
throughout and oozing with sea-scent, it
came in a well-tempered beet broth and was
wholly wonderful, down to the microscopic,
bulb-shaped piece of potato that came with.
To get in before Keller closes here will
require ingenuity and luck on your part.
But who knows it might happen.
Alternatively, if youre going to the Bay Area
any time soon, book ahead and put a few
hundred dollars aside (more if you want in
on the sumptuous Californian wines on his
list of which more, see box below) for the
original experience. It will must I say it
again? blow you away.
Until 10 Oct. 250 per person without wine. To
reserve for the waiting list at Harrods, call 0203
059 6498. For California: +001 707 944-2380.
American super-chef
Thomas Keller has
knocked Londons
culinary socks off,
says Zoe Strimpel
Top: oyster and
pearls at the French
Laundry at Harrods.
Above: The French
Laundry in Yountville,
California.
The original French Laundry occupies a small leafy build-
ing in the rarefied Napa valley town Yountville. From the
outside it looks like a transplanted Provencal farmhouse
(it is in fact a former saloon). You could almost miss it
from the street if you werent looking as only a discreet
sign divulges its purpose. Once inside theres a low hum of
chatter, corks popping and servers gliding from table to
table its almost like youve been granted access to a fab-
ulous secret members club. In fact, you really have.
Tables here can only be booked two months in advance
and seats are like gold dust. With good reason too the
food is exquisite.
Its menu is different to Londons slightly less playful
and theatric with more of a focus on classic dishes rather
than the neon green jelly and smoke-emitting wonders we
are presented with in Harrods.
The French Laundry food in Napa is offered as two set
tasting menus (London has a streamlined single menu):
the Chefs Tasting Menu and the Tasting of the
Vegetables, which also includes meat and fish but is
designed to highlight vegetable flavours. Each is around
ten courses. There are also swathes of extra canaps,
added delightful fripperies, chocolates, and
even homemade after-dinner doughnuts (as
in London), which makes it feel both
extra special and also like theres a
lot of added value to its pre-
wine $250 fixed price tag
(London is 250).
The final twist to the experience is the Napa restau-
rant's ingenious wine list not available in London in
part because theyve used the Harrods wine col-
lection. This comes presented on an iPad com-
plete with functions to shortlist your favourites
and easy search navigators to sift through its
110 pages of wines. (Note to restaurants every-
where: please copy.)
Finally, you're sent off with a delicious bag of
buttery shortbread for the journey home.
(London did up the ante here. They sent
you home with a whole full-size cake.)
Keller (pictured left) just cant disappoint.
LUCIE GREENE ON THE ORIGINAL FRENCH LAUNDRY AND HOW HARRODS MEASURES UP
BOISDALES EXUBERANT
OWNER GOES TO
JAMAICA
IN TOMORROWS LIFESTYLE
Stellar Keller: French Laundry
gives a taste of USs very best
Bar and club
launch fever
still raging
A
UTUMNAL launches have continued
apace and you can now go one bet-
ter than Patrick Bateman by dining
at Dorsia, inspired by its unbookable
namesake from Bret Easton Ellis American
Psycho. Brainchild of ex-Boujis boys Fraser
Carruthers and Nick Andreen, this impres-
sive new South Ken members club is spread
over three floors of the (ex-Firehouse)
Georgian townhouse, encompassing a 40
cover restaurant with views across to the
Natural History Museum, ground floor bar
with adjoining courtyard and a basement
nightclub. Flamboyant designer George
Rose has spared no expense with this lavish
refurbishment including raised ceilings,
onyx bars with nano technology, marble
staircases and a secret VIP room with hon-
esty bar (and even the first Armani toilet in
England!). With some of Londons top mixol-
ogy minds onboard too there is quite a buzz
about Dorsia.
Bateman himself would approve of licen-
tious members club Cirque Du Soir,
recently relocated to ex Alto/Umbaba site
on Ganton Street. Maintaining its under-
world allure, the new larger venue has a
Circus style motif but its more Twin Peaks
than Dumbo. On trend with decadent
debauchery, the live acts are unique to the
club including magicians, snake-charmers
and fire throwers. There are two stages
and giant glass boxes for performers but
other cool features include arcade games,
Candy Floss machines and funfair treats.
This table-led club has a strict door but its
sure to captivate the late-night, high-roller
crowd.
For sharper lines, Bar 45 has recently
opened at Wolfgang Pucks new restaurant
The Cut, inside the Dorchester Collections
boutique hotel 45 Park Lane. With an
immaculate and expensive finish, the inti-
mate mezzanine level overlooks the restau-
rant and Hyde Park and features a
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work and photography. As one of the only
bars in Mayfair open till 3am that you can
just walk into (look chic and be in by
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ideal for sophisticated late night cocktails.
Britains answer to Puck, Gordon
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Bread Street Kitchens dramatic space
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thetic which makes this a very different
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Tim Badham is the founder of Innerplace,
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tainment, including film premieres, fashion
shows, launch parties and members club
access. www.innerplace.co.uk
GOING
OUT
TIM BADHAM
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Fill the grid so that each block
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ACROSS
3 Fixing permanently
in place (7)
6 Native of Baghdad,
for example (5)
7 Score with a sharp
point (7)
8 Disorderly outburst
or tumult (3-2)
10 Country, capital
Warsaw (6)
12 Expresses in words (4)
14 Shape (4)
17 Explosive device
used to break down
a gate or wall (6)
19 Damp (5)
20 French castle (7)
21 Condiment (5)
22 Confectionery made from
sugar, butter and nuts (7)
DOWN
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dilapidated
condition (coll) (6)
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to make rope (5)
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9 Medical
institution (8)
11 Toward the stern
of a ship (3)
13 Item which
prevents a ship
from moving (6)
15 Abominable (6)
16 Female parent (6)
18 Entertain (5)
E
N
N
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R P
A
M
T
4

4

4

P R E D E C E S S O R
R A G L I E
A U G U R B A N N S
C L E G O C P
T R E A T W H E E L
I B O E
C I T E S S W O R N
A O T O T L D
B U R K A A N I S E
L T R I V N
E J E C T O R S E A T
1 9 9 2 8 9 3
6 8 5 7 4 9 3 1
4 7 9 1 6 3 4 2
2 5 1 4 7 9 8
8 9 6 4 7 9
9 4 7 3 8 2 5 6 1
8 1 2 7 1 2
3 4 1 3 1 5 2
8 7 6 4 9 7 8 3
1 2 3 7 5 6 9 8
9 5 2 6 1 6 1
4
4
4
4
4
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WORDWHEEL
The nine-letter word was
BREADLINE
Lifestyle | TV&Games
CITYA.M. 5 OCTOBER 2011 32
Sport
F
ORMER Olympic sprint champi-
on Darren Campbell believes it
would be dangerous for athlet-
ics chiefs to start tinkering with
the false-start rule in order to prevent
a repeat of Usain Bolts World
Championship disqualification at
next years London Olympics.
Bolt fell victim of the rule which
he supported when a change was
originally proposed in 2009 in
Daegu last month that sees any ath-
lete jumping the gun disqualified.
The Jamaican 100m and 200m
world record holder last week urged
the International Association of
Athletics Federations to consider
reverting back to the original two
strikes and youre out system. But
Campbell, a 4x100m gold medallist
in Athens seven years ago, believes
the current rule is fair and,
if anything, plays into
Bolts hands.
Everybody wants to
see how fast Bolt can
run at the Olympics next
year, Campbell told
City A.M. But the
rules are in place
and you cant go
changing things
because of one
incident. Whos
to say he would-
nt false-start
two or three
times and then
people would
be calling for
a n o t h e r
change.
You have to
be careful what
you wish for and
what you want
changed. You cant
go shaping an event
around one person
Campbell: You cant change
the rules just to suit Bolt
because you want to see him create
history again.
I think what happened to
Bolt in Daegu was that he
got caught up emotion-
ally with the fact that
he was starting well
in the heats, obvi-
ously felt in great
shape and wanted to
put on a show for the
crowd.
In any case if I was
him I wouldnt want the
rule changed because the
start isnt as important to
him as other athletes.
His main strength is the
last third of the race when
his long stride really comes
into play. For the other guys
who rely on the start they are
less likely to be anticipating
the gun because they only get
one shot at it.
Bolt will undoubtedly represent
one of the star attractions at next
summers Games, but doubts over
his fitness, coupled with the emer-
gence of stablemate Yohan Blake,
who last month ran the second
fastest 200m of all time, means the
Jamaicans sprint domination is not
as total as it once was.
Campbell (left) still believes Bolt
will start as firm favourite to defend
his Olympic titles in London but feels
the key to toppling him depends on
his opponents mentality, rather
than physicality.
Asked if Bolts eccentric pre-race
mannerisms were a good thing for
the sport, Campbell said: Its cer-
tainly a good thing for Usain Bolt
because he feeds off the attention
and reaction he gets from the crowd.
If it psyches the other guys out then
so be it. At the end of the day its
what hes always done so nobody can
complain there are any surprises.
What worries me more is when
everyone else starts trying to do their
own thing. That tells me theyre not
focused on what theyve got to do
and are already thinking Usain Bolt
will win no matter what.
Youve got to focus on what relax-
es you. Usain Bolts showmanship
isnt about wanting to be the centre
of attention, its about him getting
into a state of mind that helps him
focus on the job.
If youre going to beat him then
you can be worried about or con-
cerned about the guy next to you. Its
all about trying to blank him out, as
hard as that might be.
Darren Campbell was on the blocks at the
Scoop at More London helping Powerade
launch a promotion to win tickets to the
London 2012 Olympics 100m Finals. Find
out more at poweradegb.com
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Results
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email sport@cityam.com
Former Team GB
sprinter tells James
Goldman false-starts
are part of the game
Bolt false-started
and was
disqualified in
Daegu
Picture: PA
Sport
34
ATHLETICS chiefs gave London a glow-
ing review yesterday after they com-
pleted their visit to evaluate the citys
bid for the 2017 world championships.
Bob Hersh, senior vice-president of
governing body the IAAF, led a delega-
tion that spent three days in the capi-
tal before jetting out to rival bidders
Doha.
American Hersh cited the over-
whelming demand for tickets to the
London 2012 Olympic Games as evi-
dence of the citys appetite for world-
class athletics.
Weve been very pleased and
impressed with what weve seen in
London, he said. Weve seen evi-
dence of the commitment and enthu-
siasm of athletics fans the demand
for Olympics tickets shows that. The
stadium is a world-class and state of
the art one capable of holding a world
championship. In general weve had a
good visit.
A legal row continues to overshad-
ow the proposed handover of the sta-
dium to West Ham after the Games,
with Tottenham still disputing the
decision. That has raised doubts over
the future of the stadium as a mixed-
use venue, but Hersh said the IAAF
had been satisfied by government
reassurances that the running track
would remain in place. Were pleased
to have that distraction off to the
side, he added.
The IAAF will vote on 11 November
whether London or Doha, in Qatar,
will host the two-week-long event.
UK Athletics chairman Ed Warner
said that the presence of a football
team tenant would not be an obstacle
to a late summer championships.
As long as we give two years notice
we have the right to hold a major
championships, Warner said. The
onus is on the football club to do its
thing with the Premier League to
ensure their home fixtures dont fall
at the start of the season. We are the
prime tenant through the summer.
Chiefs give
London top
marks for
2017 bid
BY FRANK DALLERES
ATHLETICS
CHELSEA fans are taking to Facebook

in an attempt to block moves that
could pave the way for the club to
leave Stamford Bridge.
The action has been sparked by the
Premier League outfits bid to buy
back the freehold on which their
home of 106 years lies. Owning all
parts of the land would remove a sig-
nificant hurdle to moving stadiums,
should the Blues find a suitable site.
But some shareholders of support-
er-led group Chelsea Pitch Owners
CPO, which owns the freehold, have
been upset by the way Chelsea have
acted.
A Facebook page entitled Save the
Bridge was established on Monday,
hours after news of the plans
emerged, and attracted support from
hundreds of fans yesterday.
Tim Rolls, a CPO shareholder as
well as a home and away season ticket
holder, said supporters were planning
to mobilise ahead of a vote on 27
October.
Ive had communications with
three or four [supporters] groups
today and they are pretty clear they
will vote against it, Rolls told City A.M.
There will be an organised cam-
paign against the way it has been han-
dled. I think we will hear a lot about
Say No to CPO.
Chelsea say they have no current
plans to leave Stamford Bridge, and
have committed to staying within a
three-mile radius if they do move
before 2020. However, they are known
to have considered potential reloca-
tion sites, including Earls Court,
White City and Nine Elms.
Chelsea supporters harness power
of Facebook in bid to stay at Bridge
BY FRANK DALLERES
FOOTBALL
ENGLAND striker Danny Welbeck

believes his Manchester United team-
mate Rio Ferdinand still has a valuable
contribution to make at international
level, despite being left out of Fabio
Capellos squad to face Montenegro on
Friday.
The 32-year-old, a veteran of 81 caps,
was surprisingly not part of the
Italians plans for the clash in
Podgorica, from which England need
only a point to secure their place at
next summers European
Championships.
Capello may have omitted
Ferdinand, who has recovered from an
early season hamstring strain, but
Welbeck insists it is far to early to start
dismissing a player of such vast experi-
ence.
Rio is a Rolls Royce of a
defender,said Welbeck, who will be
hoping to start his first competitive
game for his country. I train with him
every day. I know the capabilities that
he has. It is wrong to write him off.
FOOTBALL
Rio still has a part to play

for England, says Welbeck
TIED TO THE TRACK
WEST HAM will not be able to scrap
the running track once they have
moved into the Olympic Stadium,
despite concerns being raised over
its effect on sight lines and atmos-
phere.
Baroness Ford, chair of the
Olympic Park Legacy Company,
which controls the future of the sta-
dium, and sports minister Hugh
Robertson both pledged yesterday
that the football club would be left
with no wriggle-room for the 125-
year duration of the lease.
The key condition of the lease
and this has been made clear from
the very start of this competition
is that an athletics track is main-
tained within the stadium. If its
not maintained the lease is broken,
she said.
So the football tenant that
comes in has accepted, and is keen
and enthusiastic to accept, that a
key component of having that lease
is that an athletics track will be
maintained for the perpetuity of
that lease, which is 125 years. So
there is no question that this will be
a mixed-use stadium. End of story.
Concerns have been aired that
the track will enforce a distance
between seats and pitch that could
adversely affect football spectators,
and have a knock-on effect on the
grounds atmosphere.
But asked if there would be any
room for West Ham to renegotiate,
Baroness Ford said: No. Weve gone
to great lengths to make sure this
was absolutely cast-iron.
Robertson, who has urged
Tottenham to drop their legal chal-
lenge to West Hams selection as
preferred tenants on the grounds
that it is completely pointless,
reiterated the long-term commit-
ment to the track.
He added: Thats another reason
why this Tottenham argument is a
little bit superfluous, because once
theyve signed the lease, theres a
125-year guarantee that the track
will remain in place.
The High Court will hear
Tottenhams claim for a judicial
review of the selection of West Ham
as tenants on 17 October. Mayor of
London Boris Johnson has offered
Spurs, who wanted to scrap the
track should they move to Stratford,
a 17m public funding package if
they drop their case and revive
plans to build a new stadium near
their current home, White Hart
Lane.
Even if Tottenham win in court,
West Ham could move in without a
re-tendering process, Baroness Ford
added. She said: In the unlikely
event the finding went in
Tottenhams favour we have a num-
ber of courses of action we could
take, all of which could be expedit-
ed and might not necessitate a re-
tender. We would get to a good end
point relatively quickly, whcih has
athletics at its core.
West Ham have always supported
keeping the track as part of a multi-
use stadium. It is understood they
are still considering installing
retractable seating over the track, in
order to cut the distance from
crowd to pitch.
BY FRANK DALLERES
OLYMPICS
West Ham not allowed to ditch athletics facility for 125-year lease of London 2012 Olympic Stadium
FLY-HALF Jonny Wilkinson provided
England manager Martin Johnson
with a timely fitness boost ahead of
Saturdays World Cup quarter-final
against France by taking part in light
training yesterday.
But vice-captain Mike Tindall, who
suffered a dead leg in last weekends
narrow victory over Scotland, sat out
the session and remains a major
doubt.
After another erratic kicking dis-
play Wilkinson damaged his elbow
against Andy Robinsons men, which
allowed substitute Toby Flood to make
a match-winning contribu-
tion off the bench.
But Toulon fly-half
Wilkinson, a World Cup
winner in 2003, took
part in the session at
Takapuna Rugby Club
without any signs of
strapping on his arm
and Johnson must
now select between
Wilkinson (right)
and the in-form
Flood when he
names his team
tomorrow.
That is unless
Tindall fails to recov-
er which would present Johnson with
the option of moving Wilkinson
to centre and handing Flood
the No10 shirt.
The back three will see
Chris Ashton and Mark
Cueto on the wings, after
Delon Armitage picked
up a one-game ban for a
high tackle on Chris
Paterson, with Ben Foden
continuing at full-back.
Johnsons other key
decision is whether to
include Tom Palmer in
the second row at the
expense of Courtney
Lawes.
BY JAMES GOLDMAN
RUGBY UNION
SPORT | IN BRIEF
Bender injury sees abandonment
FOOTBALL: Accringtons Johnstones
Paint Trophy tie against Tranmere was
abandoned last night after 39 minutes
due to a serious injury to Tom Bender.
The 18-year-old was treated for a sus-
pected broken neck for 30 minutes on
the field at the Crown Ground before
being taken to hospital after being
knocked unconscious.
Khan set for Peterson bout
BOXING: Britains Amir Khan will defend
his WBA and IBF light-welterweight
titles against American Lamont Peterson
in Washington on 10 December.
Mandatory IBF challenger Peterson, 27,
has won all but two of his 31 fights. Khan
said: I know Lamont is a strong con-
tender but it doesnt matter that Im
fighting him in his back yard.
THE BREAKDOWN |
WORLD CUP BRIEFS
TUILAGI MOUTHGUARD FINE
ENGLAND centre Manu Tuilagi has
been fined 4,800 by Rugby World
Cup officials for wearing a sponsored
mouthguard during the win over
Georgia. Tuilagi, whose brother
Alesana was fined last week for the
same offence, also wore the
gumshield in the victory against
Argentina. The Rugby Football Union
said Tuilagis breach was a genuine
error. The player himself said: I did-
nt know I had worn the wrong
gumshield and I got fined for it.
IRELAND CALL FOR SHERRY
MUNSTER hooker Michael Sherry
will travel to New Zealand as precau-
tionary cover for the injured Rory
Best (inset). The 29-year-old Best is
still being assessed as he recovers
from a shoul-
der injury he
suffered in
Irelands
emphat-
ic win
over
Italy in
their final
Pool C
match last
week. Uncapped
Sherry is set to join up with the rest
of the Ireland squad tomorrow.
BOTHAS READY TO RUMBLE
SOUTH AFRICA lock Bakkies Botha
insists his sides old guard will leave
nothing behind against Australia on
Sunday, knowing the match could
represent their last Test appearance.
Defeat in Wellington could represent
the end of the road for vetrerans
Botha, John Smith and Victor
Matfield, not that the former is think-
ing that way. He said: A handful of us
have been around the block and the
big secret for us is to focus on the
weekend. We know what we must
produce if we dont want it to be our
last game.
GHIRALDINIS 15-WEEK BAN
ITALY hooker Leonardo Ghiraldini has
been banned for 15 weeks for his
attempted eye gouge on Irelands
Cian Healy. A disciplinary hearing
found the contact to be a deliberate
act and categorised it at the top end
of offending, which has an entry point
suspension of 24 weeks. The ban was
reduced, however, because of the his
previously sound record. Ghiraldini
can resume playing from January
2012, in time for the start of the RBS
Six Nations.
Hape let down by conduct
of his England team-mates
ENGLAND centre Shontayne Hape
admits he feels let down by the off-
field conduct of those team-mates
who were reprimanded by manager
Martin Johnson, but denied the sug-
gestion his side are spiralling out of
control.
The trio of James Haskell, Chris
Ashton and Dylan Hartley were
recently read the riot act by Johnson
over inappropriate comments they
made to a female hotel worker.
Vice-captain Mike Tindall was also
heavily criticised for embarking on a
night out in Queenstown after
Englands first match against
Argentina.
And Hape, contradicting team-mate
Mark Cueto, who on Monday claimed
press coverage of Englands nocturnal
activities was horrendous and
blown out of all proportion, believes
the behaviour of his colleagues
crossed the line.
A couple of the guys have let the
squad down but its not like anyone
killed anyone, said the Kiwi-born
London Irish star. We want to focus
on the rugby.
Hape, who is rivaling Tindall for a
starting spot ahead of the quarter-
final against France on Saturday, did
concede off-field incidents were
inevitable during long trips abroad.
A couple of incidents have hap-
pened off the field, he said. Some
people would say they are minor.
Weve been out here for the last eight
weeks, things like this are going to
happen.
Im sure guys who have been on
previous tours have done a lot worse
things.
Meanwhile, scrum-half Richard
Wigglesworth insisted the negative
coverage had only served to bolster
team spirit ahead of a fortnight which
will determine whether or not
Englands World Cup campaign will
be deemed a success.
We feel like its harsh but thats
what brings a team together, he said.
We have buried it now. I think its
the great thing about rugby that we
have always been very accessible to
fans and media because there has
always been that mutual respect. We
dont want that to go and hopefully it
wont.
These sorts of things only bring
you closer together. Behind closed
doors we are very, very close and the
banter is still flying around between
the lads.
Centre Manu Tuilagi echoed
Wigglesworths sentiments and high-
lighted the thriving spirit flowing
throughout the England squad.
All the things that have happened
bring us tighter together as a team
and sometimes bad things can be
good, he said.
We just need to go out there, get
the win and get the job done. We
havent performed to our best yet but
hopefully that will come out on
Saturday.
BY JAMES GOLDMAN
RUGBY UNION
Hape could deputise for injury doubt Tindall on Saturday Picture: ACTION IMAGES
Wilkinson fitness boost but Tindall looks doubtful
Two changes for
struggling France
FRANCE coach Marc Lievremont has
resisted the temptation to make whole-
sale changes ahead of Saturdays
World Cup quarter-final against
England. Les Bleus were humbled 19-
14 by Tonga last weekend but
Lievremont has made just two changes
to that side with Nicolas Mas returning
in place of Luc Ducalcon at prop, and
No8 Imanol Harinordoquy promoted at
the expense of Raphael Lakafia.
KEY PLAYERS |
WHAT THEY WANT
BORIS JOHNSON
Mayor of London
Boris Johnson has
offered Tottenham a
17m package of
public money if they
drop their legal
challenge for the
Olympic Stadium
and commit to
building a new
ground near their
current home instead. Johnson was keen for
the matter to be resolved before the visit of
world athletics chiefs this weekend, to exam-
ine Londons case for hosting the 2017 world
championships. With just over a month until
the 11 November vote, it remains in limbo.
TOTTENHAM
Tottenham may have lost the bidding war for
the Olympic Stadium
but they are not
done yet. Their legal
challenge to the
decision to name
West Ham as pre-
ferred bidders will
be heard in the
High Court later
this month, on 17
October, and in the
meantime their persistence has gained them
leverage in their wrangle for greater financial
assistance in building a new stadium in north
London. They are yet to accept a 17m pack-
age offered last week by Boris Johnson.
WEST HAM
West Ham won the
bid battle back in
February and have
long been keen to
finalise their plans
to move into the
Olympic Stadium
and carry out a
95m renovation.
Crucially, they
have committed
to keeping the
running track and sharing the stadium with UK
Athletics, as well as a number of other poten-
tial sports, such as cricket and American
Football. Whatever happens in the High Court,
they look sure to be the stadiums tenants.
FALSE-START RULE IS
TO BOLTS ADVANTAGE
CAMPBELL SAYS IF ITS NOT
BROKEN DONT FIX IT: PAGE 33
35
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