Cityam 2012-02-23

Meet London Business School
Speak informally with a London Business School representative about our portfolio of
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Wednesday 29 February 2012: Hilton Canary Wharf, South Quay, London E14 9SH
Thursday 1 March 2012: Novotel London Tower Bridge, 10 Pepys Street, London EC3N 2NR
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+21*
.21*
1(:
<25.
'8%$,
FTSE 100 t5,916.55 -11.65 DOW t12,938.60 -27.09 NASDAQ t2,933.17 -15.40 /$ 1.57 t-0.01 / 1.18 t-0.01 /$ 1.32 unc
Oil price at
record 78
per barrel
THE PRICE of oil hit an all-time high in
sterling yesterday, paving the way for
record petrol costs at the pumps in the
coming weeks.
The relatively weak pound means
Brent crude spiked at around 78.50 a
barrel, beating the previous record of
77.70 set last spring.
In dollar terms crude, squeezed up
by supply worries linked to Irans con-
frontational stance, rose up to 1.3 per
cent to nudge past $123 a barrel yester-
day a nine-month high.
The pound hit a ten-week low
against the euro and lost 0.7 per cent
against the dollar yesterday following
surprisingly dovish comments in the
Bank of Englands meeting notes.
Diesel has already hit an all-time
high of 1.43 a litre in the last few
days, and the current unleaded cost of
nearly 1.36 a litre is edging closer to
the record of 1.3743 set last May.
Luke Bosdet, spokesperson for the
AA, said: [The spike] will feed through
to petrol prices, and it will completely
strangle demand. We are going
through an exact mirror of where we
were last year, with tension in the
Middle East creating fears over oil sup-
ply, and then market speculators inter-
vening to push the price further.
The wholesale price of oil will filter
down to the pumps in as little as 10
days, Bosdet added. And it is not just
the UK having to fork out for pricey
fuel: the AA has criticised the all-time
highs seen in Ireland, and the rest of
the Eurozone is also feeling the pinch.
BY MARION DAKERS
ENERGY
RBS boss Stephen Hester is poised to freeze pay for tens of thousands of staff Picture: GETTY
RBS will announce a pay freeze for
up to 27,000 staff this morning,
including all of its investment
bankers and thousands of other
executives, in a move designed to
signal to the public and the govern-
ment that it is embracing austerity.
The nationalised bank will also
reveal that the bonus pool in its
investment bank has more than
halved to some 400m for an aver-
age award of 23,000 per banker, a
far cry from the awards being given
out by rivals. The rest of the bank
will divvy up a bonus pool of around
the same amount, adding up to
around 800m.
Recruiters say they expect many
of the investment banks most tal-
ented staff to leave once the next
batch of bonus stock vests or pays
out later this year.
Youre going to see a mass-exo-
dus of their best guys, said one
recruiter who headhunts bankers.
Such an exodus would stoke fears
that the managements inability to
run the bank on fully commercial
terms is damaging its value, making
it harder for taxpayers to get back
their 45bn in bailout money.
City A.M. recently revealed the
depth of investor concern about
political interference in the banks
management: at least half of its top
RBS STAFF HIT BY
SHOCKPAYFREEZE
www.cityam.com Issue 1,576 Thursday 23 February 2012 FREE
ISA MYTHS
EXPLODED
MAKE THE MOST
OF YOUR TAX
ALLOWANCE P28
ten private shareholders have com-
plained to UK Financial
Investments, the government
agency that manages taxpayers 83
per cent stake, about the growing
political risks associated with own-
ing its stock.
Chief executive Stephen Hester
nevertheless tried to make the case
for running the bank as a commer-
cial business last night to defend
paying bonuses. We are a commer-
cial business and we attract people
who are attracted to a commercial
business I had to look all over the
world for the best people [to run the
bank] because we fired all of the top
management team, he said.
Hester also said that he views the
public profile of his position with
horror. He told the BBC: The lime-
light I hate. I really hate it. I dont
know if Id have done it if I had my
time again. But Im here and what I
care about is can RBS succeed. Im
gritting my teeth about the rest and
pushing on with that.
He defended the job cuts he is
implementing: One of the least
pleasant things I have to do is mak-
ing cost-savings that come from job
losses. If we dont do it we cant save
RBS and safeguard the jobs that are
left.
ALLISTER HEATH: P2
BANKS: P8-9
Certified Distribution
02/01/12 till 29/01/12 is 92,258
BY JULIET SAMUEL
BANKING
ANALYSIS l RBS Group PLC

p
16Feb 17Feb 20Feb 21 Feb 22Feb
28.50
28.00
27.50
27.00
26.50
27.33
22 Feb
HOT CITY JOBS AND
WHERE TO FIND THEM
ALL-NEW CAREERS SECTION P19
BUSINESS WITH PERSONALITY
News
2 CITYA.M. 23 FEBRUARY 2012
Weak house
sales hit Dow
US STOCKS fell back from earlier
highs yesterday as weak housing fig-
ures and poor European and Chinese
growth prospects dented market con-
fidence.
The Dow Jones hit a post-financial
crisis record of 13,000 on Tuesday, but
fell 0.11 per cent yesterday to 12,951,
while the Standard and Poors 500
slid 0.19 per cent over the day.
Decembers housing sales figures
were revised downwards, taking the
shine off strong January figures.
Sales rose 4.3 per cent in January to
an annualized rate of 4.57m units,
the highest since May 2010 but
Decembers sales fell 0.5 per cent to
4.38m, significantly down on the five
per cent rise to 4.61m that was initial-
ly reported.
Price fell, too, with the median
price down to $166,100 (105,920), the
lowest level since 2002, and the price
of pre-owned homes down two per
cent to $154,700.
However, the housing market is
not all weak the number of unsold
homes fell to 2.31m last month, its
lowest level since 2005.
European stocks were also down on
poor purchasing managers indices
suggesting the Eurozone may fall
into an official recession, pushing the
German DAX down 0.93 per cent and
the French CAC 0.52 per cent.
BY TIM WALLACE
US ECONOMY
RUSSIAN LINK IN FRAUD CLAIM

A $150m fraud allegedly attempted by
a former fund manager at
Threadneedle Asset Management is
linked to a trade in more than a bil-
lion Argentinian warrants by former
staff at Otkritie, the Russian financial
services group. Threadneedle con-
firmed on Tuesday that a former trad-
er had been dismissed in August.
VOLCKER RULE POSES RECOVERY RISK
Japan and the UK have urged the US
to rewrite its so-called Volcker rule,
claiming that trading restrictions on
US banks could hit the international
sovereign debt market at a delicate
moment in the global recovery. They
say new US banking reforms could
make it more difficult, costlier and
riskier for countries to issue and dis-
tribute debt.
BREWER STARBEV FACES TAKEOVER
CVC, the private equity fund, has
been assesing approaches from sever-
al brewers for Starbev, which it
bought for $3bn in December 2009. It
has not put Starbev up for sale or
begun a formal sales process but the
move follows approaches to CVC
about a possible bid for the company,
which it acquired from Anheuser-
Busch InBev.
LIVINGSTONE REJECTS NEW AIRPORT
Ken Livingstone has spoken out
against Boris Johnsons plans for a
new airport in the Thames estuary,
saying it is unaffordable, would hurt
wildlife and could harm west London.
HOLIDAY INN OWNER TO CREATE 3,000
JOBS
The worlds biggest hotel company
yesterday became the latest leisure
operator to announce plans to create
new jobs in Britain. InterContinental
Hotels Group, which owns the
Holiday Inn, Crowne Plaza and Indigo
brands, promised to take on almost
3,000 employees over three years.
SCHOOL LEAVERS GIVEN DE-TEXT
LESSONS TO SPEAK THE LANGUAGE
BUSINESS NEEDS
Social networking has created an
underclass of prospective employees
who lack basic skills needed to join
the workforce, says Peter Searle, UK
chief executive of Adecco.
UK HOUSING MARKET HEADING FOR
LOST DECADE, WARNS COLLINS
STEWART
Britains housing market is heading
for a lost decade and government
aid to support the industry is based
on bunkum projections of a proper-
ty shortage in the UK. Coalition pro-
posals to boost mortgage lending
could leave first-time buyers in nega-
tive equity, says Collins Stewart.
RTSPAIN APPEALS TO BRUSSELS FOR
EASIER DEFICIT REDUCTION TARGETS
Spain has appealed to Brussels for
softer deficit-reduction targets, rais-
ing fears that Europes rescue strate-
gies are unworkable in the bigger
Eurozone economies.
FEDERAL PANEL APPROVES WEIGHT
LOSS DRUG QNEXA
A federal advisory panel yesterday
overwhelmingly backed Vivuss
weight loss drug Qnexa, boosting the
chance the Food and Drug
Administration could approve a new
prescription weight-loss drug for the
first time in more than a decade.
WORLD BANK PUNISHES ALSTOM
The World Bank has temporarily
blacklisted and fined two subsidiaries
of the French engineering company
Alstom after the companies allegedly
offered bribes to gain a power-plant
contract in Zambia a decade ago. The
subsidiaries will pay $9.5m in restitu-
tion and face a block on Bank bids.
WHAT THE OTHER PAPERS SAY THIS MORNING
Bonus row now completely irrational
UTTERLY absurd: that is the only way
to describe the debate on bonuses.
Here is why. Imagine a salesperson at a
widget company so brilliant that she
brings in 10m a year for her firm. She
is the best widget salesperson in the
UK and her firms biggest asset. Her
company, unfortunately, is loss-mak-
ing but if it were to lose her to a rival,
it would collapse. Yet according to the
current received wisdom, she should-
nt receive a bonus. Only profit-mak-
ing firms should be allowed to pay
bonuses, we are constantly told,
regardless of individual effort and
regardless of consequences. The fact
that this means she will leave widg-
ets salespeople arent know for their
loyalty and her firm will go bust,
with the loss of many jobs, is deemed
irrelevant. Its madness.
Here is another scenario which
illustrates the ambient silliness.
Imagine a widget firm that pays its
staff half in fixed, base pay and the
remainder in variable pay. A recession
strikes and the demand for widgets
slumps. The firm is able to cut staff
costs without having to fire anybody;
it can still reward stars and survives
intact. Now imagine another widget
company, run in the way commenta-
tors tell us is more prudent. It has
slashed variable pay and put up base
pay (it tried merely to ditch bonuses,
but the staff threatened to walk out,
so it had to hike fixed salaries). The
recession hits; it is unable to cut costs
instantly, starts making redundancies
but is crippled by the large payouts
needed and by the slowness of the
process. It goes bust, all employees lose
their jobs and the shareholders lose
their shirts.
Badly designed bonuses can trigger
stupid behaviour but well designed
ones with deferred and equity compo-
nents and no payouts for failure need-
nt, and an economy with low fixed
and high variable costs is more
resilient than one with the opposite
characteristics. Here is another incon-
sistency: A banker on a base pay of
10m and zero bonus gains plaudits;
his colleague on a base pay of zero and
a bonus of 4m is hated. Why? And
why does everybody always forget that
high salaries in the UK are a joint ven-
ture between HMRC and the individ-
ual? Even the terminology is suspect:
in many cases, what is known as the
bonus system (or these days, as the
bonus culture) is more a revenue or
profit share system; it is not meant to
exist only or even primarily to reward
exceptional performance. The variable
component reflects a range of factors
but in the aggregate is a mechanism
to divvy up between labour and capi-
tal the cash generated in industries
prone to large cyclical fluctuations.
Contrary to the received wisdom, pay
as a share of revenues is not especially
high in finance; it is comparable to
many other service sector industries.
Regular readers will know that I
support real capitalism and abhor
bailouts. I dont think RBS should have
been allowed to continue to exist post-
crisis. But it was, and the aim now
ought to be to get taxpayers cash
back. Yet the bank is being run to min-
imise pay in the short-term to score
political points (and politicians who
once used to stand up for workers
rights and against shareholders are
cheering), rather than being managed
to maximise value. The investment
bank unit is deliberately being crip-
pled. The pay freeze for thousands of
top staff proves the firm is being treat-
ed like the civil service. Governments
cant own banks; they always end up
destroying them. What a mess.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
WARNER Music Group refuses to sur-
render its thirst for British record label
EMI, whose recorded music business is
set to go to Universal Music for 1.2bn
following Novembers bidding war.
Warner Music is reportedly lobby-
ing Brussels to block Universals
takeover of the record label behind
Coldplay and The Beatles, alongside
indie music representative Impala.
But an Impala spokesperson told
City A.M.: There is absolutely no link
between Warner and us on that. We
both have very different reasons to
oppose the move.
Warner is said to have expressed an
interest in buying major parts of EMI if
Universals bid is approved and the
music giant is required to sell some
assets to appease competition issues.
A Universal spokesperson said
Warners wave-making is unlikely to
affect the European Commissions
decision: We have a strong case and
were confident it will get clearance.
Warner Music was unavailable for
comment.
BY LAUREN DAVIDSON
ENTERTAINMENT
Warners eye still on EMI

EMI, home to Blur and Iron Maiden, is being pursued by Warner Music Group
NEWS | IN BRIEF
Cherie Blair sues over hacking
The wife of former Prime Minister Tony
Blair has begun legal action over the
alleged interception of her private phone
messages, her lawyer said yesterday.
Barrister Cherie Blair, 57, issued a state-
ment through a London law firm that
has pursued phone-hacking cases
against Rupert Murdoch's British news-
papers on behalf of several high profile
clients. I can confirm that we have
issued a claim on behalf of Cherie Blair
in relation to the unlawful interception
of her voicemails, lawyer Graham
Atkins, of Atkins Thomson, said in the
statement.
BHP stops manganese operation
BHP Billiton, the worlds biggest mining
firm, announced this morning that it will
suspend production at its manganese
alloy production facility in Tasmania by
early to mid-March, citing stiff interna-
tional competition and rising operating
costs. Recently, there has been further
erosion of its international competitive-
ness due to the strong Australian dollar
and steady increases in input costs,
including in reductants and electricity,"
the company said in a statement.
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editors
Code of Practice, a copy of which can be found at
www.pcc.org.uk
Printed by Newsfax International,
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If you have any comments about the distribution
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The US economy has
been gradually gaining
pace under President
Obama, who faces an
election battle this year
4th Floor, 33 Queen Street, London, EC4R 1BR
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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 Gavin Billenness
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
The new jobs website for London professionals CAREERS.com
EDINBURGH Woollen Mill has rescued
the distressed fashion chain Peacocks
out of administration, saving 6,000
jobs, though thousands of staff are
still to be made redundant.
Administrator KPMG said the deal,
which was settled at the weekend, will
save 388 shops but more than 244
stores have ceased trading with
immediate effect, leading to
3,100 redundancies.
EWM walked away from
the auction of Peacocks
earlier this month but
was invited back to the
bidding table by KPMG at
the eleventh hour.
The group beat off
competition from
SKNL, the
c h a i n s
I n d i a n
supplier,
which was
in long-
running talks to buy a substantial
number of stores.
Chris Laverty, joint administrator at
KPMG, told City A.M. that EWM was
first to the finishing line with a bid
that reflected the best value with the
most certainty.
Last year, EWM snapped up the Jane
Norman brand and 33 of its stores
after the womenswear retailer
plunged into administration.
The group, based in Langholm,
Scotland, has expanded to over
500 stores in a decade under
the chairmanship of Philip
Day. He was previously manag-
ing director of Aquascutum,
where he helped turn around
its UK business.
Day (pictured), who staged a
management buyout of EWM
in 2002, said the Peacocks pur-
chase gives further depth to
EWMs range of trading pro-
files and asserts our position
as one of the UKs leading
High Street fashion and
clothing retailers.
Peacocks sold
to Edinburgh
Woollen Mill
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PROPERTY tycoons Vincent and
Robert Tchenguiz have won the right
for a judicial review of the circum-
stances surrounding their arrests last
year during a Serious Fraud Office
probe.
Yesterday the embattled SFO did
not contest High Court applications
by the brothers, who were held in
March as part of the SFO inquiry into
the collapse of Icelands Kaupthing
Bank in 2008. The judicial review
hearing is expected to take place over
three days in May.
They were among nine people
arrested when more than 135 police
officers swooped on various premises
across London.
The brothers were released with-
out charge and two months ago the
Tchenguiz Family Trust threatened to
sue the SFO for up to 100m in dam-
ages.
Yesterday Robert said: I am confi-
dent that in due course the court will
find in my favour and will vindicate
the view which I expressed at the
time that the actions of the SFO on 9
March 2011 were unlawfully dispro-
portionate.
The SFO has admitted there were
errors in a search warrant obtained
against Vincent before the March
raids but is in dispute with him over
what will happen to certain evidence.
Despite dropping their opposition
to the review the agency is expected
to contest Roberts assertion that the
warrants related to him were invalid.
The brothers are two of Britains
best-known property entrepreneurs.
Tchenguiz brothers set for new battle with SFO
Vincent (left) and Robert Tchenguiz, pictured with sister Lisa, have won the right for a judicial review
BY PETER EDWARDS
ENFORCEMENT
News
ROYAL Dutch Shell yesterday
announced a 992.4m bid for Cove
Energy as it seeks to expand its foot-
print in the East African market.
Coves main asset is an 8.5 per cent
stake in the Rovuma Offshore Area 1
in Mozambique where more than 30
trillion cubic feet of natural gas has
already been identified.
Shell has been concentrating on its
gas business, which is now almost
equal in size to its oil operation. The
energy giant has offered 195p per
share in cash, which Coves manage-
ment said they would recommend to
shareholders.
Coves three most senior executives
chief executive John Craven, chair-
man Michael Blaha and finance direc-
tor Michael Nolan are in line for a
31m windfall if they sell their shares
after a successful deal.
The firms partners on the Rovuma
project include Anadarko, Mitsui,
Bharat Petroleum, Videocon, and
ENH. Sources said it was unlikely that
Shell would settle for just 8.5 per cent
of Rovuma in the long term and
could target buying up a bigger slice.
In the meantime Shell needs to win
approval from the Mozambique gov-
ernment for the Cove deal. Cove also
has interests in Tanzania and Kenya.
Irene Himona, oil analyst at Socit
Gnrale, said: Shell absolutely must
be in East Africa.
Separately, Shell said Malcolm
Brinded, its gas exploration and pro-
duction operations chief outside the
Americas, would step down.
Shell in 1bn
bid to snap up
Cove Energy
BY JOHN DUNNE
OIL
News
ANALYSIS l Royal Dutch Shell Plc
p
3,320
2,310
2,300
2,290
2,280
2,309.00
22 Feb
GERALDINE Murphy heads the oil
& gas advisory team at Standard
Chartered Bank and is leading the
team advising Cove Energy.
She joined the bank in 2007 fol-
lowing the acquisition of Harrison
Lovegrove & Co and has over 20
years of oil and gas deal experience.
Prior to joining Standard
Chartered she was an executive
director with CIBC World Markets
Oil & Gas M&A team in Calgary and
London. She has advised on over
$25bn of transactions in the sector
including recently advising Chinese
NOC Sinochem on the 532m
acquisition of Emerald Energy and
BP on the $7bn sale of assets in US,
Canada and Egypt to Apache
Corporation in 2010.
The broker for Cove on the deal is
Cenkos with Joe Nally leading the
team. The London School of
Economics-educated executive
joined Williams de Broe in 1976 as
an investment analyst covering
property and insurance companies.
He went on to become an institu-
tional salesman, covering a wide
range of institutions in the UK and
Europe. He has worked on a broad
range of IPOs including secondary
fund raising and takeovers and
mergers.
Meanwhile Shells adviser is
Morgan Stanley.
MEET THE ADVISERS
OIL MAJORS AFRICAN ADVENTURE
GERALDINE
MURPHY
STANDARD
CHARTERED
*992.4m- bid value
*8.5 per cent - Coves stake
in the Rovuma Offshore Area 1
*30 trillion cubic feet -
Operator Anadarko has found
more than 30 trillion cubic
feet of natural gas in Rovuma
*31m- the amount Cove's
three most senior executives
chief executive John
Craven, chairman Michael
Blaha and finance director
Michael Nolan could receive
if they sell their shares follow-
ing a deal
18.83m metric tons - Shell's
sales volumes of liquefied nat-
ural gas (LNG) in 2011
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ADVERT8EMENT
uildhall Art Gallery hosts a Late View, The Cat's Pyjamas,
tomorrow from 6pm 10pm to celebrate its current
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Sinfonia performs music by
Bach and Poulenc at St
Andrew Holborn, Holborn
Circus, EC4, on 29
February at 1.05pm, as
part of the City of London's
Free Winter Concerts 2012.
Admission FREE more
details from www.coIf.org
and www.cIs.co.uk
Lord Mayor David Wootton leads
a City business delegation this
week to Kuwait, Qatar, United
Arab Emirates, Saudi Arabia and
Bahrain. "My City colleagues and
I are looking forward to a
productive visit to promote
London and the UK's financial
services to business leaders and
policy makers in some of our key
export markets."
Gulf visit for City
Lord Mayor
8infonia performs
free lunchtime
concert
G
Jazz and cocktails at art gallery
announcement marks another step
in the growth of our upstream oil and
gas business.... It underlines our com-
mitment to invest where we see
attractive opportunities, securing
future energy supplies for the UK.
Centrica bought 1bn worth of
exploration and production assets
from Norways state energy firm
Statoil in November, and last month
raised its stake in the Statfjord field
in the Norwegian North Sea.
ENERGY group Centrica has agreed to
buy $388m (246m) worth of UK
North Sea oil and gas assets from
French firm Total.
Centrica, parent company of
British Gas, said its purchase of the
seven sites would raise its reserves by
around five per cent, or 22m barrels
of oil, and is expected to produce
9,300 barrels of oil equivalent per day
this year.
Centrica, which last year threat-
ened to mothball UK sites in response
to the governments oil and gas profit
tax hike, is looking to expand its
upstream operations and said yester-
days purchase raises the mix of oil in
its portfolio.
The assets in the sale include the
Maria site and three others operated
by BG Group, which was also spun
out of British Gas in the 1990s. BP and
Chevron run the other sites.
Mark Hanafin, managing director
of Centrica Energy, said: Todays
Centrica buys up
Totals UK fields
BY MARION DAKERS
ENERGY
News
COAL-FIRED power producer Drax has
scrapped plans to build a dedicated
biomass plant on its site in North
Yorkshire.
The company, which also reported
a smaller-than-expected drop in full-
year core earnings yesterday, said
state support levels for using only bio-
mass in power generation were still
too low. High costs of transporting
fuel to its inland site also contributed
to the decision to abandon one of its
biomass projects, it said.
Drax had planned to build a 290-
megawatt dedicated biomass plant in
cooperation with Siemens Project
Ventures on its Selby site where it
already owns one of Britains largest
coal-fired power plants.
The decision creates another
obstacle for the government and their
ambitious 2020 mandatory renew-
able energy targets, said James
Barrett-Miles of Ernst & Young.
Shares in Drax dropped two per
cent to 508p yesterday.
Drax shelves
plans for new
biomass plant
ENERGY
SUNDAY TIMES REPORTER KILLED IN SYRIA

Marie Colvin, the vet-
eran Sunday Times
foreign correspon-
dent, has been killed
in Syria. Born in
New York, she cov-
ered almost every
war zone in the
world during the
last quarter of a cen-
tury. She died in the
city of Homs along-
side French photog-
rapher Remi Ochlik
after an artillery
shell hit their safe
house. President
Bashar al-Assads
forces continue to
bombard the city.
PROTESTERS from Occupy London
appear set for an angry confrontation
with bailiffs after they lost a last-ditch
legal bid to preserve their camp out-
side St Pauls Cathedral.
Yesterday three judges dismissed
the activists applications for the right
to appeal against an earlier eviction
order, paving the way for the City of
London Corporation to clear around
120 remaining tents.
The Occupy group vowed peaceful
resistance after Stuart Fraser, the
Citys policy chairman, called on them
to pack up their tents and equipment
immediately. Fraser said: Peaceful
protest is a democratic right but the
camp is clearly in breach of highway
and planning law.
The City will press ahead with an
eviction as the protesters consider
whether to take their case to the
European Court of Human Rights. It
raises the prospect, however, that
much of the camp could have disap-
peared before a hearing in Strasbourg.
Earlier yesterday three judges, head-
ed by the Master of the Rolls, Lord
Neuberger, said the protesters did not
have an arguable case to appeal under
English law.
The freedoms and rights of others,
the interests of public health and pub-
lic safety and the prevention of disor-
der and crime, and the need to protect
the environment of this part of the
City of London all demand the reme-
dy, they said in a written summary.
The City is expected to begin an evic-
tion soon but said it could not reveal
the timing for operational reasons.
The Occupy group said: This is just
the beginning. The movement is grow-
ing and evolving beyond its spiritual
and symbolic home by the steps of St
Pauls near the London Stock
Exchange.
The camp, set up on 15 October,
held more than 200 tents at its peak.
Activists have denied accusations of
drug use and vandalism.
Protesters on
the brink as
legal bid fails
BY PETER EDWARDS
POLITICS
HEWLETTPACKARD has announced

a 44 per cent decline in quarterly
earnings as the computer giant was
hurt by weak sales of PCs and printers.
The Silicon valley company report-
ed net income of $1.47bn (938m) for
the first fiscal quarter, down from
$2.6bn a year earlier.
Revenue dropped by seven per cent
to $30bn, missing forecasts.
HP has struggled to deal with the
shift away from traditional PCs and
towards mobile devices.
Meg Whitman, HPs new president
and chief executive officer, said: In
the first quarter we focused on the
fundamentals to drive long-term sus-
tainable returns. We are taking the
necessary steps to improve execution,
increase effectiveness and capitalize
on emerging opportunities to reassert
HPs technology leadership.
HP profits plunge
as PC sales slump
TECHNOLOGY
Members of the Worshipful Company of Stationers pass activists near St Pauls Cathedral
News
www.RateSetter.com Customer Phoneline: 08442490115
In association with RateSetter: A better way to Save and Borrow, Peer to Peer
MUNICE KHAN | ROTHSCHILD
If the public perceives them to be doing something beneficial then
yes, they would be achieving something. But all the protesters are
doing is causing a nuisance and the public agrees.
JAKE HALSTEAD | INGLEBY TRICE
They havent got anywhere. They have annoyed more people than they
have helped and even acted aggressively. They seem confused as to
why theyre even there.
MICHAEL FRANK | CELLPOINT MOBILE
Personally I think they are beginning to make a mark as it has been all
over the media and has sympathy from people like Terry Smith. It
seems to have caused the whole world to notice and complain about
things like bankers bonuses.
* These views are those of the individuals below and not necessarily those of their company
CITY VIEWS: DO YOU THINK THE OCCUPY PROTESTS
HAVE ACHIEVED ANYTHING? Interviews by Phoebe Torrance
MICROSOFT has asked EU antitrust
regulators to intervene in a patent
dispute with Google and Motorola
Mobility as it stepped up its battle
against Google.
Microsoft complained that
Motorola Mobility was charging
Microsoft too much for use of its
patents in Microsoft products a week
after the European Commission and
the US Justice Department approved
Internet search leader Googles
$12.5bn acquisition of mobile phone-
maker Motorola.
Microsoft asks
for patent help
TECHNOLOGY
BARCLAYS saw the number of retail

customer complaints it receives edge
down by six per cent last year in a
development that it expects to deliver
millions of pounds in cost-savings.
The drop in complaints came
despite a 12 per cent rise in the second
half of the year entirely due to the pay-
ment protection insurance mis-selling
scandal, which has cost the bank 1bn.
Complaints relating to PPI soared by
102 per cent to 196,684 at Barclays,
accelerating after banks dropped an
appeal and agreed to pay out compen-
sation to those who were mis-sold the
insurance. Lenders have received a
blitz of unwelcome publicity related to
PPI, with lawyers chasing consumers
and encouraging them to file for com-
pensation.
But overall, complaints dropped sig-
nificantly in Barclays other non-PPI
related businesses, which the bank
thinks will deliver millions in savings.
Excluding PPI, complaints dropped
by 29 per cent last year to 336,363. The
biggest improvement was in the retail
bank, where they fell by 31 per cent.
The bank said that some of its most
effective changes included processing
replacement debit cards within two
days rather than a week and releasing
funds of the deceased to bereaved kin
far more quickly.
The banks head of retail Antony
Jenkins said: Tackling complaints is
our top priority... We are aiming for
further significant reductions in
underlying complaints in the first half
of 2012.
Barclays sees
complaints
edge down
WELLS Fargo is buying an energy lend-
ing business from BNP Paribas, in the
US banks latest acquisition from a
European bank seeking to shrink its
balance sheet.
The San Francisco-based bank is buy-
ing $9.5bn (6.1bn) of total loan com-
mitments, including $3.9bn in funded
balances. BNP said the premium paid
by Wells and other terms of the all-
cash deal were not being disclosed.
BNP said the sale of the Houston-
based business was part of its plan to
reduce its US dollar funding require-
ments and would provide a slight ben-
efit to its tier one common equity
ratio.
The company said it remains com-
mitted to maintaining a strong North
American energy and commodities
business.
About 90 per cent of the portfolio is
US-based, with the rest mostly in
Canada, Wells said. Once the deal clos-
es, the combined energy group will
have about $30bn in total commit-
ments, said Kyle Hranicky, who leads
the Wells Fargo group, which is also
based in Houston.
The deal, subject to regulatory and
other approvals, is expected to close in
the second quarter. The groups 36
employees in Houston and Calgary will
be offered jobs with Wells, BNP said.
BNP Paribas
offloads dollar
assets to Wells
BY JULIET SAMUEL
BANKING
BANKING
News
ANALYSIS l Barclays PLC
p
255
250
245
240
235
239.20
22 Feb
BANKS paid out a record 441m in
compensation for insurance mis-sell-
ing in December, taking the total pay-
out for 2011 to 1.9bn.
The Financial Services Authority
said payouts in December jumped 16
per cent from the previous record of
379m in November.
There has been an increase in
monthly payouts in almost every
month since April, when banks lost a
long-running legal battle to avoid pay-
ing compensation.
Analysts predict that the total bill
to compensate customers who were
wrongly sold loan insurance could
now hit 6bn.
Lloyds Banking Group, led by
Antnio Horta-Osrio, has set aside
3.2bn to compensate the banks cus-
tomers, and this week the said it
would claw back past bonus pay-
ments to bosses who were in charge
at the time of the mis-selling.
Banks pay out 1.9bn in
PPI mis-selling scandal
Antnio Horta-Osrio, Lloyds CEO, has set aside 3.2bn for PPI claims. Picture: GETTY
BY JAMES WATERSON
BANKING
News
THE chief executive of St Jamess
Place has said many FTSE-listed
firms are undervalued, as the
upmarket wealth manager report-
ed a rise in profits and its dividend.
There has been a disconnect
between the fundamental value of
companies and their share price ...
2011 was not a good year for mar-
kets, David Bellamy told City A.M.
He was speaking as St Jamess
said a 10 per cent net inflow of
funds under management during
2011 had helped boost operating
profit by 12 per cent to 371.5m.
The firms clients, largely high
net worth individuals, face more
challenges in managing their
money as they live for longer and
see asset income hit by record low
interest rates.
St Jamess, majority owned by
taxpayer-backed Lloyds Banking
Group, increased its annual divi-
dend by a third and indicated a
similar hike will follow for per-
formance in 2012.
The firm also said funds under
management have grown to
29.5bn at the end of January, up
1bn from the end of 2011.
While mindful of the difficult
economic conditions that persist,
we have a good platform for fur-
ther growth in new business in
2012 and we remain confident of
achieving our medium term
growth objectives, Bellamy said.
St Jamess has also appointed
Patience Wheatcroft, the Tory peer
and former editor of The Sunday
Telegraph, as an independent non-
executive director. She previously
served at Barclays.
St Jamess profit before share-
holder tax rose 30 per cent to
109.7m.
Profit at St Jamess
Place up on turmoil
BY PETER EDWARDS
ASSET MANAGEMENT
TRADERS rushed to cash in on

global turmoil last year, boosting
profits at spread betting firm
London Capital Group.
The firm said pre-tax profits for
the year ending December 2011
rose nine per cent to 7.1m.
London Capital, which specialis-
es in spread-betting and online
trading, reported a 13 per cent rev-
enue rise to 39m.
Chief executive Simon Denham
said its groups systems had come
through considerable volatility
in financial markets in the second
half of the year.
Whilst extreme volatility such
as that seen in August and
September can lead to technologi-
cal issues in our industry, the
group had no such issues.
Denham also highlighted the
collapse of commodities broker MF
Global in October and said London
Capital would consider appropri-
ate acquisitions if opportunities
cropped up, as he struck a bullish
tone on the chances of winning
new work.
Whilst we believe the economic
situation in the UK and Europe is
unlikely to improve significantly in
the medium term, LCG has shown
that it can build its business even
in tough times.
The firm, founded in 1996 as a
proprietary trading business, pro-
posed a final dividend of 2.6p a
share, making a total for the year
of 3.9p, up from 1p last year.
Its performance echoed that of
larger rival IG Group, which last
month also reported higher profits
as big swings in financial markets,
driven by Europes debt crisis,
pushed up trading volumes.
Volatility no trouble as traders push
London Capital to income growth
FINANCIAL SERVICES
BUSINESS has been better than expect-

ed for investment banks so far this
year, according to research by JP
Morgan analysts, offering a glimmer
of hope for the troubled industry.
But the analysts, led by Kian
Abouhossein, are still expecting the
first quarter of this year to show a
marked drop in revenues compared to
the start of 2011.
The analysts write: We witnessed
material improvement in investment
bank overall revenues from the first
two weeks of January into February,
leading us to upgrade our year-on-year
FICC (fixed income, commodities and
currencies) revenue estimate for the
first quarter of 2012 from minus 26
per cent to now minus 13 per cent year
on year.
They add that if the trend contin-
ues, they could see revenues declining
by less potentially by five per cent
but that it is not yet strong enough to
merit a full-year upgrade.
The assessment reflects a greater
sense of optimism since the New Year,
in large part due to the European
Central Banks decision to inject a
flood of long-term funding into the
continents banking system, which has
seen bank wholesale markets
unfreeze.
The JP Morgan research note shows
that fixed income activity and the
business generated from it have
jumped so far this year. In particular,
global government debt issuance has
shot up from a quarterly average of
$70bn (45bn) at the end of 2011 to
$132bn this year so far, the data shows.
Equity volumes are also sharply
higher this year. The three-month aver-
age volume for the LSE has gone up
from $2.2bn in December to $3bn.
Investment bank
revenues improving
over first quarter
BY JULIET SAMUEL
BANKING
368.40
22 Feb
ANALYSIS l St James's Place PLC
p
385
380
375
370
365
360
UBS might struggle to attract big
institutional investors for more loss-
absorbing bonds it wants to sell,
after investors voiced distaste for the
structure and price of an initial $2bn
(1.3bn) deal announced yesterday.
UBSs new bonds are designed to
help bolster the bank in tough times
by absorbing losses. Their value can be
written down if the banks key com-
mon equity Tier 1 ratio falls below five
per cent or hits non-viability.
The bank, which needs to raise
roughly $16bn to meet new capital
rules, said it is weighing issues in
other regions and currencies which
are likely to exceed $1bn in size.
UBS attracted $5.5bn of demand
from investors. But they also drew
sharp criticism from several poten-
tial institutional buyers, who said
similar issues from UBS and other
banks will be a tough sell.
Its clearly not an investor-friend-
ly structure, said Philippe
Kellerhals from asset management
firm Cairn.
UBS prepares
new move on
capital rules
BANKING
Sergio Ermotti has led several changes as CEO Picture: GETTY

GREECE has received a fresh blow as
ratings agency Fitch downgraded the
government, warning a default is
highly likely in the near term.
Even the shaky 130bn (109.9bn)
bailout deal, agreed by Eurozone lead-
ers in the early hours of Tuesday
morning, may not be implemented as
parliamentarians in Germanys ruling
parties threatened to vote against it.
Fitch argued the debt swap, in
which private investors will exchange
bond holdings for longer-dated, lower
value bonds, might help Greece avoid
defaulting next month but counts as a
distressed debt exchange, meriting a
downgrade from triple-C to single-C.
Meanwhile Merkel was forced to
rely on the support of opposition par-
ties after several members of her own
CDU and coalition partners the FDP
rejected the bailout.
I will vote no whatever happens
because this is purely about delaying
an insolvency, said the CDUs Klaus-
Peter Willsch.
However, the Greek government did
take one step towards fulfilling its obli-
gations, agreeing to work with other
countries to clamp down on tax eva-
sion, which has been rampant in the
country for many years.
Signing up to the convention on
mutual administrative assistance in
tax matters will help Greece restore
the longer-term sustainability of its
public finances, and improve its
internal tax collection system and pur-
sue revenues lost to tax avoidance and
evasion, said OECD boss Angel Gurria.
Fitch: Bailout
BY TIM WALLACE
EUROZONE
News
10
Meanwhile data published by
Markit showed economic activity fell
in the Eurozone in February, heighten-
ing expectations that the first quarter
will see a renewed recession, though
French and German output expanded.
The purchasing managers index for
PRESIDENT Barack Obama launched a
dialogue with US companies yesterday
over business tax reform, offering his
first clear plan to cut the corporate tax
rate, though with little prospect of it
becoming law in an election year.
The President proposed cutting the
top corporate tax rate to 28 per cent
from 35 per cent. This would address
US corporations long-standing gripe
about the rate being too high cur-
rently they pay the worlds second-
highest corporation tax rate after
Japans.
In return for lowering the tax rate
on businesses, the plan calls for broad-
ening the corporate tax base by end-
BY HARRY BANKS
US POLITICS
Obama brings firms

Angela Merkels
MPs do not think
Greece can pay its
huge debts.
Picture: REUTERS
the region as a whole came in at 49.7
down from 50.4 in January and below
the no change mark of 50.
Some optimism came from
Eurostat data, also published yester-
day, which registered a 1.9 per cent
monthly rise in industrial orders in
is likely to fail
THE EUROPEAN Commission (EC)
yesterday proposed suspending
some of its payments to Hungary
because it is not satisfied that the
country is trying hard enough to
bring down its budget deficit.
Hungary is set to lose 495m
(418.26m) next year, representing
0.5 per cent of the countrys GDP
and 29 per cent of its income from
the EUs cohesion fund, which is
meant to promote economic and
social development.
The EC said it had repeatedly
urged Hungary to step up its
efforts to end the countrys exces-
sive government deficit, which has
not been below the three per cent
limit since the country joined the
EU in 2004 and is forecast to hit 3.25
per cent of GDP in 2013.
All 26 other EU members will
have to vote through the proposed
measure, and if the country persists
in borrowing too much it may have
all of its cohesion funding stopped
in 2015.
EU commissioner Olli Rehn
denied the measure is a punish-
ment, arguing instead that it is to
be regarded as an incentive to cor-
rect a deviation, and is a fair and
proportionate step for the EC to
take.
BY TIM WALLACE
HUNGARIAN ECONOMY
11
News
December.
The data are consistent with a mild
recession, focused on the industrial
sector, said Barclays Capitals Julian
Callow, but the new orders figures
suggest the Eurozone is very gradually
easing out of recession.
ing a number of tax breaks, some
spelled out previously in Obamas
budgets, and sure to be resisted by
powerful corporate interests.
In a move partly to counter the
unveiling of an economic plan by
Republican presidential contender
Mitt Romney, Obamas proposal was
rolled out at a briefing by Treasury sec-
retary Timothy Geithner, likely mark-
ing the start of lengthy negotiations.
The current tax code was written
for a different economy, a different
era, Geithner said. He plans to meet
next week with members of Congress
to try to win support for the plan.
This process will take some time. It
will be politically contentious, some
will say these proposals are too tough
on business, others will say they are
not tough enough, he said.
The plan will try to reverse tax
incentives for corporations to relocate
jobs and research overseas, while giv-
ing domestic manufacturing opera-
tions a special tax break.
In a new twist, the president pro-
posed imposing a minimum tax on
corporate profits earned in low tax
countries.
tax simplification to campaign
Hungary faces EU
budget punishment
ECONOMICS | IN BRIEF
IFS hits out at pension plan
Changing employer pension schemes
from the current opt in system to an
auto-enrolment system will result in
firms pushing up prices, reducing divi-
dends and mostly likely, the Institute
for Fiscal Studies (IFS) believes reduc-
ing wages. Making the switch between
systems is a case of bad timing from
the government, the respected think-
tank said yesterday, because workers
have already suffered from falling real
wages in the face of high inflation.
Workers who still opt out of the new
scheme will be the biggest losers, it said,
as they will see wages rises decline but
see none of the benefit from employer
contributions to their pensions.
Brits down on economy
An overwhelming majority of Britons
rate the state of the economy as bad,
according to new research from Ipsos
Mori. Only 13 per cent view the UKs
economic situation as good, while 87
per cent see it as bad. The survey is at
its most positive since June 2011, but
remains well below Germanys where
around seven in ten rate their economy
as being in a good state. However, the
UKs outlook is not the worlds worst
only eight per cent in Japan, six per cent
in France and four per cent in Spain rate
their economies as good.
Extra 1bn in growth funds
Deputy Prime Minister Nick Clegg will
today announce 1bn is available for
firms to create jobs through the regional
growth fund. A total of 48 firms so far
have taken money from the initiative,
which now has 2.4bn available. The
companies present an investment plan
and demonstrate that it will create new
jobs and make a significant impact on
their local economy, before they can
access the funds. For every 5 the firm
contributes, the government adds an
extra 1, with the aim of stimulating
extra job creation around the country.
Clegg is announcing the scheme at a
manufacturing conference today, and
will urge the sector to bid for the cash.
Chinas PMI lifts Japans stocks
Japans Nikkei share average rose one
per cent yesterday to its highest level in
six months, boosted by news that
Chinas manufacturing sector rose to a
four-month high in February, although it
remained in contraction territory. The
HSBC flash purchasing managers index
(PMI), the earliest indicator of Chinas
industrial activity, rose to 49.7 in
February from 48.8 in January. The PMI
has been below 50, indicating contrac-
tion, for most of the last eight months.
The Nikkei closed at 9,555 after two
sessions of stiff resistance at 9,500.
PRIME Minister David Cameron will
attack anti-business snobbery in a
speech to the Business in the
Community conference today.
Business is the most powerful
force for social progress the world
has ever known, he is expected to
say, just two days after the
Confederation of British Industry
(CBI) accused some government poli-
cies and ministers of appearing
anti-business.
The Prime Minister will point to
increasing numbers of internships
and apprenticeships as evidence that
businesses are boosting skills, and
making things better.
In particular, Cameron is set to hit
out at critics of companies, arguing
that it is only snobbery which has
led to work experience placements
being slammed as slave labour,
and that says business isnt really to
be trusted.
Companies including UBS,
Barclays and McDonalds are all
praiseworthy, he believes, as they cre-
ate thousands of opportunities for
young people to gain valuable work
experience.
However the governments own
record on promoting business has
been questioned on Tuesday the
CBI attacked the governments
efforts to limit immigration, arguing
it put international businesses and
workers off coming to the UK.
PM to hit out at
anti-business
snobbery in UK
POLITICS
EUROPES largest drinks can maker

Rexam put its underperforming per-
sonal care business up for sale yester-
day and said it would look to return
cash to shareholders, sending its
shares to their highest level in nearly
four years.
The British firm, which also report-
ed full-year profits largely in line with
expectations yesterday, said strength
in its core beverage cans business off-
set continued weakness at plastic
packaging, which includes the per-
sonal care and healthcare operations.
Rexam, which makes Red Bull and
PepsiCo cans as well as packaging for
food, healthcare and cosmetic prod-
ucts, said it had decided to hive off
the underperforming personal care
unit as it did not expect a turnaround
in the near term. The unit has been
hit by rising costs and lower volumes.
The firm plans, however, to retain
the healthcare unit.
Chief executive Graham Chipchase
declined to say how much the busi-
ness could be sold for, or give a time-
frame. Analysts have said the
personal care unit could fetch up to
350m.
Full-year operating profit at the
companys plastic packaging unit was
down 14 per cent at 102m, with the
business accounting for 19 per cent of
group underlying operating profit,
down from 23 per cent the year
before.
Full-year pre-tax profit rose 15 per
cent to 450m, in line with a consen-
sus forecast of 447m, according to a
company-supplied poll.
The rise was driven by a 14 per cent
jump in underlying operating profit
at Rexams beverage cans unit, which
now accounts for 81 per cent of group
profit.
Shares in Rexam climbed 7.4 per
cent to 413p, their highest levels since
May 2008, and were the top percent-
age risers on the FTSE 100.
FRANCE Telecom, the parent body of
Orange UK, cut dividends for the next
two years by almost 15 per cent as it
continues to lose customers to low-cost
rival Free Mobile.
Full year net income attributable to
equity owners dropped 20 per cent to
3.9bn as the group struggled in the
face of Europes economic headwinds.
Earnings before interest, taxes,
depreciation and amortisation were
down five per cent to 15.1bn as sales
at France Telecom came in at 1.6 per
cent lower than last year, at 45.3bn.
Chief executive Stephane Richard
put this down partly to the increasing
cost of borrowing since France lost its
top credit rating and the loss of
201,000 customers.
The telco also postponed the share
buyback it promised investors when it
sold its Swiss arm for $1.5bn in
December, and said it expected an
uncharacteristically quiet year ahead
in terms of acquisitions and big deals.
Shares rose two per cent to 11.66.
France Telecom dividend
slashed on earnings drop
TELECOMS
SHARES in recruiter Hays got an eight

per cent lift yesterday after it said its
global net fee income had risen 11 per
cent, despite a decline in its UK opera-
tions.
Net fees grew by 11 per cent on a
like-for-like basis in the six months to
31 December compared to same peri-
od in 2010, rising to 373.8m.
Operating profit was up 14 per cent on
a like-for-like basis to 63.1m, and over-
all turnover for 2011 hit 1.86bn.
Hays said it was encouraged by a
strong start to 2012 in booming
resource and IT markets, and credited
its diverse market spread for helping
to boost first-half profits by 24 per
cent.
Net fees, or gross profit, for the peri-
od rose by 16 per cent in its Asia Pacific
market on a like-for-like basis.
Continental Europe and the rest of the
world increased by 27 per cent but the
UK dropped six per cent as banking
markets in particular continued to
struggle.
Hays boosts income as
UK lags behind on fees
RECRUITMENT
HEATHROW airport passenger num-

bers rose five per cent to a record
69.4m last year, helping BAA to nar-
row its losses.
The airport operator made a loss of
255.8m in the year to 31 December,
compared with 316.6m the year
before.
The firms revenues rose 10 per
cent on last year to 2.28bn, the firm
said in a statement.
Passengers at Stansted airport,
which BAA must sell under a compe-
tition ruling, dropped by 2.8 per cent
to 18m.
The company said the total num-
ber of passengers at its airports rose
3.7 per cent to 87.4m.
BAA said: Of Heathrows major
markets, European traffic showed the
most significant year-on-year growth,
increasing 7.6 per cent to 28.5m pas-
sengers.
Heathrow operates at almost full
capacity and BAA said the airport
used a record 99.2 per cent of its max-
imum permitted annual arrivals and
departures last year.
BAA said this meant it was unable
to keep up with demand for new
routes to growing markets in places
in Asia, such as Manila, Shenzhen
and Jakarta.
Chinese airlines have come to us
saying they want to add routes from
Heathrow to cities in China but we
have to turn them away because
theres no space the airlines cant
believe it when we say no, said Colin
Matthews, BAAs chief executive.
However, growth has come
because there was no disruption in
2011 and thanks to aircraft sizes
increasing and load factors being at
record levels, which we see continu-
ing in 2012.
Matthews said investors can expect
a dividend payout of 60m next year.
Heathrow slims losses at BAA
BY JOHN DUNNE
AVIATION
Rexam plans
personal care
business sale
BY HARRY BANKS
CONSUMER
News
NEWS | IN BRIEF
Aegis buys US digital agency
Aegis Group is speeding towards its
twin targets of US expansion and digital
media growth by agreeing to acquire
Roundarch, the American digital agency,
for a maximum consideration of $360m
(229.6m) in cash. The British communi-
cations company will pay an initial
$125m for its new addition, but is more
likely to fork out nearer $250m by 2017
due to the deals five year structure
based on Roundarchs performance.
LightSquared cuts staff in half
LightSquared plans to axe half of its
employees to save money after the US
wireless network defaulted on its $56m
rental fee to Inmarsat last weekend. The
company hit a blockade last week when
US communications regulator the FCC
revoked permission for LightSquared to
move ahead with its wireless network,
which was found to be interfering with
GPS signals. Amid speculation that the
business could be nearing bankruptcy,
LightSquared will lay off 45 per cent of
its 330-strong workforce.
Alibaba stocks soar on delist plan
Shares in Chinese e-commerce giant
Alibaba.com soared yesterday after the
websites parent, Alibaba Group, bid up
to HK$19.6bn (1.6bn) yesterday to buy
out minority shareholders and delist the
business. Alibaba Group, led by Jack Ma,
offered a 46 per cent premium of
HK$13.50 a share for the 27 per cent it
does not already own, sending the stock
up 43 per cent to HK$13.20, valuing the
company at HK$66bn.
Micro Focus says trading on track
Micro Focus has said its trading was in
line with expectations in the latest quar-
ter. The FTSE 250 firm ended the period
with a net debt position of $156m
(99.5m), compared to $47.6m at the
end of October, the firm said in a state-
ment yesterday.
AUSTRALIAS top job could be about
to change hands, after foreign minis-
ter and one-time leader Kevin Rudd
quit his government post yesterday,
saying he could no longer work with
current Prime Minister Julia Gillard.
Gillard last night said her Labor
Party will hold a vote on Monday to
decide its leadership though Rudd
has not explicitly said whether or
not he will stand.
Gillards government has sunk in
popularity as she and Rudd, whom
she ousted in 2010, have waged a per-
sonal feud that has split their Labor
Party and alienated Australian vot-
ers.
Rudd had announced plans for a
40 per cent tax on miners profits,
triggering huge protests from heavy-
weight companies including BHP
Billiton and turning the levy into a
political football.
But a compromise agreement
negotiated by his successor Gillard
has now reduced the rate to 30 per
cent for coal and iron ore miners.
The deal was struck just a week
after Gillard had swept to office.
Rudd quits Australian
government in PM bid
Kevin Rudd clashed with the mining industry over taxation
BY JOHN DUNNE
POLITICS
ANALYSIS l Rexam
p
420
410
400
390
380
413.00
22 Feb
FINANCIER Jacob Rothschilds
London-listed RIT Capital Partners,
Sainsbury and the Duchy of
Cornwall are among a group of
investors who plan to invest more
than 65m in a clean technology
start-up focused on producing ener-
gy from organic waste matter.
The new company, Tamar Energy,
will develop a network of around
44 anaerobic digestion plants to
generate 100 megawatt of green
electricity over the next five years,
the consortium said yesterday.
Anaerobic digestion is the con-
version of organic waste material
into biogas by bacteria. The
methane-rich biogas can then be
used either in a local generating
plant to produce electricity, or
cleaned and injected into the gas
grid.
Sainsbury, which is investing
2m, said it will work with suppli-
ers to ensure that they have access
to Tamars new plants, which
would reduce waste in the supply
chain.
The UK is lagging behind com-
petitor countries in this form of
renewable energy; Germany, for
example, has around 1,000 times
more plants than in the UK, partly
due to more attractive subsidies.
Alan Lovell, the former Costain
chief executive who is Tamar chair-
man, said that some of the manage-
ment team would be investing in
the new company and would own a
total stake that amounts to around
five per cent of the company.
He said the management were
open-minded about the future.
The aim is to run the company for
a number of years and then decide
whether to sell or list, he said.
Rothschild-backed renewable energy
group Tamar planning to raise 65m
ENERGY
CITY SALUTES ARMED

FORCES AT GUILDHALL
THE CREAM of Londons business and culi-
nary talent last night came together at
Guildhall for the Square Mile Salute fundrais-
er to support the armed forces.
Owen Paterson, secretary of state for
Northern Ireland, was guest of honour at the
military fundraiser, where 13 of the worlds
top chefs including John Williams of The
Ritz and Christian Garcia, chef to His Serene
Highness Prince Albert of Monaco had pre-
pared a six-course charity banquet with
matching wines and champagnes.
The evening was all about pleasure, bon
vivant and networking, said lead chef
Raymond Blanc, who declared himself a fan of
the City as he opened the evening. I like it so
much, I opened Brasserie Blanc on
Threadneedle Street, he said.
The Lady Mayoress Liz Wootton and Gilly
Yarrow, wife of the sheriff of the City of
London, arrived together while their hus-
bands are in Dubai as part of a tour selling the
City to Middle Eastern business we think
weve got the better deal, said Yarrow while
General Lord Dannatt, the former head of the
British Army, caught up with Second Sea Lord
Charles Montgomery and private secretary to
the Lord Mayor William Chapman.
The fundraiser was held in aid of four sol-
diers charities Help for Heroes, ABF The
Soldiers Charity, The Royal British Legion and
the Household Cavalry Operational Casualties
Fund. Auction prizes included four days skiing
with Olympic downhill champion Franz
Klammer and a five-night stay at Albany, the
Bahamas resort owned by billionaire Joe
Lewiss Tavistock Holdings.
Lewis, The Capitalist hears, is a keen player of
paddle tennis, even though he turned 80 earli-
er this month. He keeps beating me, com-
plained Lewiss much younger opponent
Darren Renwick, a professional golfer.
The Capitalist
14
Olympic skier Franz Klammer and his wife Eva
Terry Murphy of Chamberlain & Thelwell and his daughters Grace and Hope Owen Paterson, secretary of state for Northern Ireland Former Kinetic WPP chairman Eric Newnham and his wife Judy
WO1 (RCM) Warren Brown, WO2 (SCM) Martin Ireland, and Major James Gaselee
David McG Smith, director of markets of the City of London, Second Sea Lord Charles Montgomery, and William
Chapman, private secretary to the Lord Mayor
The Lady Mayoress Liz Wootton and Gilly Yarrow, wife of Sheriff of the City of
London Alan Yarrow Chef Raymond Blanc OBE
BlackRock VP Alex MacEwen and his wife Scarlet
520Copy
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
15
PICK OF THE AUCTION LOTS
Guest of Francois Roland-
Billecart in Champagne
Accompanied by John Williams of The
Ritz, stay in House of Billecart-Salmon as
Francois' guest. Dinner with Francois and
John; tour of the vineyards and golf.
A day with the Household
Cavalry
Includes a tour of the Mounted Regiment
stables and cavalry black horses, an hour
long coach ride in Windsor Great Park
and Officers Mess lunch.
Internship at City A.M.
A great opportunity to work with the
Citys leading newspaper and see from
start to finish what it takes to bring a
newspaper to life each day.
Work experience with
BlackRock
A rare opportunity for someone wanting
to gain experience at a global asset man-
agement company.
Luxury Game reserve stay
Four days for 10 people at Royal
Madikwe 5-star game reserve and
safari in an unrivalled slice of Africa's
wilderness.
Skiing with Franz Klammer
Four days skiing next winter in the
premier skiing locations in the Italian,
German and Austrian Alps, hosted and
personally guided by Olympic
Champion Franz Klammer.
Five Nights on Albany in
the Bahamas
Trip of a lifetime. The resort that is the
vision of Tavistock Group and golfing
legends Tiger Woods and Ernie Els,
and home to James Bond's Casino
Royale.
Monaco Grand Prix and Royal
Reception
Four nights at Fairmont Monte Carlo.
Exclusive Grand Prix viewing point at the
Fairmont Hairpin bend and an invitation
to Prince Albert of Monaco's reception.
The Savoys Royal Suite and
Boodles diamonds
Chauffeured in The Savoys Phantom,
overnight stay in the Royal Suite, 24
hour butler service, dinner in Savoy Grill
and 3,000 of Boodles jewellery.
A davenport made from
Nelsons HMS Victory wood
Nina Campbell Interior
design consultation
World renowned interior designer
Nina Campbell will provide a profes-
sional consultation in your home.
General Lord Dannatt Rosina and James George of The East London Steak Company
News
BARRATT Developments swung back
into profit in the first half of the year
thanks to its increased focus on high-
er margin regions, building houses
rather than flats and developing low-
cost land bought after the 2008 prop-
erty crash.
Shares, which are up almost 50 per
cent since Christmas, rose almost
eight per cent yesterday after the
company said it made a pre-tax prof-
it of 21.6m for the six months to
December compared with a loss of
4.6m for the same period last year.
The average selling price increased
3.1 per cent to 181,200, helped to
boost its operating margin to 6.4 per
cent from five per cent a year ago.
Housebuilders have been widen-
ing their operating margins by focus-
ing on houses and building on
cheaper land purchased since the
downturn.
Barratt has bought more than
22,000 plots of land since 2009, and
expects to purchase around 8,000
plots in 2012, it said in a statement.
Chief executive Mark Clare the
firm was upbeat in its outlook for
the second half as housebuilders
move into the key spring selling sea-
son, particularly with a new govern-
ment-backed mortgage indemnity
scheme to help first-time buyers,
which is due to be introduced mid-
March.
The company has received around
1,000 registrations a week for the
new programme, designed to help
first-time buyers get on the property
ladder, which Clare said presents a
major opportunity for the industry.
Rival housebuilder Galliford Try
also posted strong results yesterday
and doubled its dividend after
reporting an 89 per cent rise in half-
year profits to 32.2m.
The firm, mainly focused on the
south east, said it built a record 1,352
homes in the period, up 50 per cent.
GENERAL Motors and PSA Peugeot
Citroen are discussing a manufac-
turing alliance designed to stem
losses in Europe and reduce pro-
duction costs elsewhere, sources
with knowledge of the matter said.
Talks between GM, the worlds
biggest carmaker, and European
number two Peugeot are focused
on sharing vehicles and parts
rather than swapping stakes,
according to the sources.
Any new shareholdings that
emerged would be small and sym-
bolic.
Peugeot confirmed talks but
would not name the partner, and
GM spokeswoman Kelly Cusinato
said: We routinely talk to others
in the industry but have no com-
ment beyond that.
Peugeot shares jumped as much
as 21 per cent, and closed 12 per
cent higher at 16.12, the biggest
one-day gain in three years, while
GM was down 0.1 per cent.
Peugeot moots General
Motors alliance in Europe
AUTOMOTIVE
SHARES in London-listed Logica

jumped over six per cent to 86.7p yes-
terday despite an 80 per cent drop in
pre-tax profits to 32.7m, as the IT
services provider reported improved
trading since its December low point
that led to a profit warning and 1,300
job cuts.
In 2011, the Anglo-Dutch compa-
nys revenues grew four per cent to
3.9bn, but its underlying operating
profit dropped 11 per cent year-on-
year to 247m in line with Logicas
December forecast.
Full-year orders were up 13 per cent
to 4.6bn as outsourcing sales grew
23 per cent to 2.2bn.
Logica chief Andy Green said the
companys Benelux business, which
dragged the group down, is expected
to return to profit in 2012 after mak-
ing a 73m operating loss in 2011.
Otherwise, revenue is expected to
be flat in 2012 although margins will
recover slightly to above 6.5 per cent
from 6.2 per cent in 2011.
Logica leaps on recovery
from December despair
TECHNOLOGY
EVERYTHING Everywhere could roll

out the next generation of mobile net-
work (4G) later this year despite expec-
tations that Ofcoms auction of the
coveted 800MHz spectrum will not
see any real action until early 2013.
The UK hybrid of Orange and T-
Mobile is running an ongoing 4G trial
in Cornwall on the 800MHz spectrum
and is due to trial the latest network
on its existing 1800MHz spectrum in
Bristol from April. If this trial is suc-
cessful, and Everything Everywhere
receives a licence to liberalise its band-
width for 4G use, Orange and T-
Mobile customers could be on 4G
by the years end.
But the group said the ini-
tial rollout will be on a small
scale and available only on
dongles at first, not phones.
The 4G network will support
much faster download
speeds, allowing mobile
devices to be used for HD
video streaming and
other data-heavy tasks.
The telco group has
already upgraded 60
per cent of its current
network to 3.5G,
which increases
download speeds by
about 50 per cent.
Chief executive Olaf Swantee (pic-
tured) called this a great opportunity
for the UK, and said that 4G is vital
in bringing the nation to a level
playing field with other parts of
Europe, the US and Asia.
It is expected that the
national birth of 4G on
the 800MHz spectrum,
currently used for
analogue TV, will
interfere with televi-
sion signals in up to
1m homes. The telcos
will foot the bill, in
excess of 100m, to
provide a solution.
4G rollout expected this year
BY LAUREN DAVIDSON
TELECOMS
Barratt sees
swing back
into profits
BY KASMIRA JEFFORD
PROPERTY
Barratt said the first-time buyer scheme is proving popular Picture: GETTY
MILLENNIUM and Copthorne, the
owner of a chain of hotels including
the Chelsea Football Club hotel, has
posted record profits for 2011 and
upped its annual payout to share-
holders.
Underlying profits before tax
jumped by 43.7 per cent to 184.7m
in the year to December, boosted by
the sale and leaseback of its Studio M
hotel in Singapore to CDL Hospitality
Trusts REIT.
The groups annual dividend leapt
by 65 per cent at 16.5p per share.
Millennium ups
dividend payout
LEISURE
TRAVIS PERKINS, the building mer-

chant and home improvements retail-
er, said it was continuing to win
market share, helping to drive profits
up by 37 per cent last year, despite a
depressed construction market.
The owner of brands including
Wickes DIY chain posted adjusted pre-
tax profits of 297m while revenues
surged by 52 per cent to 4.78bn.
Chief executive Geoff Cooper fore-
cast solid progress for 2012 , and said
the group was capable of outgrowing
competitor in what he expects will
remain a tough market.
Travis Perkins
earnings surge
RETAIL
ANALYSIS l Barratt Developments

p
140
135
130
125
120
139.80
22 Feb
Why a tie-up isnt necessarily the answer
IN 1974, Citron brought out its CX
marque, an avant-garde masterpiece
that rivalled the likes of Audi, BMW
and Mercedes Benz. It was the last
great Citron. Two years later,
Peugeot took over the financially-
struggling car company in a deal bro-
kered by the French government. It
spent the next decade or so destroy-
ing everything that made Citrons
special. The same thing happened
when General Motors bought Saab in
1989. Both cases serve as cautionary
tales to those who think mergers or
pacts can solve the industrys woes.
Any cooperation between Peugeot
and GMs European operations
Vauxhall and Opel is likely to stop
short of a merger; the Peugeot family
will not want to lose control of the
firm that has been part of their
dynasty since 1842. Instead the pair
are likely to take small, symbolic
stakes in one another and to share
technology and production facilities,
much like Nissan, Renault and
Damiler did when they announced a
three-way tie-up in 2010.
Heaven knows the pair need to do
something. Last year they lost around
$1.2bn between them, as the
European car market struggles in the
face of the euro crisis and the with-
drawal of government-funded scrap-
page schemes (thankfully Britains
Asian-focused car production is buck-
ing the trend). But a tie-up in and of
itself is not a solution. The real prob-
lem is that Europes car industry is
operating at huge overcapacity.
Whereas the US car sector shed
almost half a million jobs in the two
years before its biggest names
emerged from bankruptcy in 2009,
just two European factories have
closed since 2007.
What Peugeot, Vauxhall and
Opel must do is shut down some of
their plants. A tie-up wont make it
any easier.
BOTTOMLINE
Analysis by David Crow
ANALYST VIEWS: CAN BARRATT BUILD ON
ITS STRONG RESULTS? Interviews by Kasmira Jefford
ROBIN HARDY | PEEL HUNT

Barratt has risen 50 per cent in less than six weeks even though little has
changed in its expected trading patterns and despite it making still unacceptably low
returns. It risks being a case of better to travel than to arrive and we would now
advise investors to carve out gains or switch into stocks that have lagged.
KEITH BOWMAN | HARGREAVES LANDSDOWN

Current stability in the housing market provides a platform for potential fur-
ther growth. Debt across the industry has been cut, reducing financing costs, whilst
the outlook for interest rates has, if anything turned in the industrys favour. For now,
market consensus opinion continues to denote a buy.
RACHEL WARING | PANMURE GORDON

Barratt's interim results are ahead of expectations and the group has
reported a strong start to second half trading. Although the shares have enjoyed a
fantastic performance already in 2012 (up 40 per cent), we still believe that there
is further to go. We maintain our buy recommendation.
enjoy sitting.
down.
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St Jamess Place
Baroness Wheatcroft, the former editor
of the Wall Street Journal and the
Sunday Telegraph, has been appointed
as an independent non-executive direc-
tor of the wealth management group,
effective from 2 April. Roger Walsom, a
non-executive director since 2005, will
not be seeking re-election at the AGM in
May and will leave the board on 8 May.
Squire Sanders
The law firm has launched a maritime
practice team in London, led by three
new partners: Graham Harris and
Dharmendra Nair, who join from
Thomas Cooper, and Linos Choo, who
joins from DLA Piper. Additionally, Anne
Pickering and Ann Mazzucco join as
associates, also from Thomas Cooper.
Barclays Wealth
The wealth manager has appointed
Julian Wantling as managing director,
head of global FX. Wantling joins from
UBS, where he has worked for 25
years, working primarily in FX distribu-
tion for UBS investment bank and
wealth management divisions.
Akin Gump
Akin Gump Strauss Hauer & Feld has
announced it will open a new office in
Hong Kong, to be led by Gregory D Puff,
who joins from Shearman & Sterling.
Puff, who will also run the law firms
Asia practice, will be joined in the Hong
Kong office by Andrew Abernethy, who
moves from Norton Rose.
Quilter
The wealth manager has hired Oliver
Stainer to join its investment manage-
ment team. Stainer joins Quilter from
Towry, where he was a specialist within
the investment management team; prior
to that, he worked at Edward Jones,
where he was an equities specialist and
head of equity marketing UK.
Novo Altum
Simon Cordier has joined Novo Altum as
a director responsible for finance trans-
formation delivery. He joins from Ernst
& Young, where he was a director in the
financial management team in Scotland.
Field Fisher Waterhouse
The law firm has hired Tim Bird, formerly
head of the corporate practice at
Wedlake Bell, where he focused on equi-
ty capital markets, as corporate partner.
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
US stocks slide on
doubts over credit
B
ANKS led US stocks lower yester-
day as the S&P 500 stalled near a
10-month high after signs of
weak European business activity
rekindled concerns about a recession
overseas.
US banks were the S&P 500s worst
performing sector. Investors feared
that weak Eurozone growth would
hamper countries dealing with heavy
debt loads and the banks exposed to
those debts.
Were very concerned around the
markedly deteriorating credit funda-
mentals in Europe, said Steven
Baffico, chief executive officer at Four
Wood Capital Partners in New York.
Data showing weakness in the
Eurozone services and manufacturing
sectors overshadowed the day-old deal
to bail out Greece.
After touching a near seven-month
high on Tuesday, the KBW bank index
fell two per cent. A key European bank
index declined 2.5 per cent.
The S&P 500 index failed again to
hold above 1,360, the high reached last
May and a key resistance point that
could spark further gains if broken.
The benchmark index is up about
eight per cent for the year and gained
more than 20 per cent from its
October lows.
The Dow Jones industrial average
lost 27.02 points, or 0.21 per cent, to
12,938.67. The S&P 500 Index dropped
4.55 points, or 0.33 per cent, to
1,357.66. The Nasdaq Composite fell
15.40 points, or 0.52 per cent, to
2,933.17.
Oil services companies rose, partly
offsetting the decline by banks.
Drilling contractor Nabors Industries
rose seven per cent to $21.78 a day
after its operating results topped Wall
Street expectations and as the chief
executive detailed a retooling of the
company.
The PHLX oil services sector index
rose 1.7 per cent.
Home builder stocks fell, with the
PHLX housing sector index down 1.4
per cent. Data showed US home resales
surged to a one and a half year high in
January but came in below forecasts.
Dell was one of the biggest drags on
the S&P, tumbling 5.8 per cent to
$17.10 in volume 2.5 times above its
recent daily average. The computer
maker forecast revenue below expecta-
tions late Tuesday.
After the markets close, shares of
computer maker Hewlett-Packard fell
1.4 per cent after reporting quarterly
revenue below expectations.
About 6.3bn shares changed hands
on the New York Stock Exchange, the
Nasdaq and Amex, compared with last
years daily average of about 7.8bn
shares.
B
RITAINS leading share index
edged lower yesterday as
investors refocused on funda-
mentals, specifically weaker-
than-expected Eurozone data, with
the Greek debt restructuring theatri-
cals out of the way for now.
Recession concerns increased after
data showed the Eurozones service
sector unexpectedly shrank in
February, with Europe being Britains
main market for its goods.
The FTSE ends the trading day fair-
ly flat off the back of lacklustre trad-
ing and average volume, as a fall in
Banking and Mining Stocks offset the
gains by Oil and defensive stocks,
said Mike Mason, trader at Sucden
Financial Private Clients.
Banks were the biggest blue chip
fallers, extending Tuesdays weakness
seen after the second Eurozone
bailout for Greece failed to alleviate
concerns about the debt-laden coun-
try, with the cautious mood not
helped by a downgrade of Greeces
credit rating by Fitch yesterday.
Worries remain about the imple-
mentation of key austerity measures
in Greece which were crucial in get-
ting the bailout.
Royal Bank of Scotland was a big
sector faller, down 3.1 per cent as
investors took a cautious stance
ahead of the lenders full-year results
due today.
Barclays also fell, down 3.5 per
cent, albeit as the stock traded ex-div-
idend. Carnival and Reckitt Benckiser
also traded without their payment
attractions, knocking 3.5 points over-
all off the FTSE 100 yesterday.
The FTSE 100 index ended down
11.65 points, or 0.2 per cent at
5,916.55, retreating further from a
seven-month closing peak reached on
Monday, stuck in a tight trading
range established earlier in February
between around 5,850 and 5,920.
Miners fell back in tandem with
copper prices as demand confidence
was rattled by weak export data from
top consumer China, as well as doubt
over Greeces ability to implement
tough reforms aimed at cutting debt.
Vedanta Resources was the top
blue chip faller, down five per cent as
RBC Capital cut its rating for the min-
ing group to sector perform from
outperform, in part on valuation
grounds, and reduced its earnings
forecasts and target price.
Vedanta had added seven per cent
on Tuesday on reports of a potential
consolidation of both its Sterlite and
Sesa Goa minorities.
Gains in integrated oils, however,
provided underlying strength for the
blue chips, led by BG Group, up 1.9
per cent, thanks to a steady crude
price and with consolidation moves
in the sector.
Royal Dutch Shell, up 0.2 per cent,
launched an agreed 992.4m offer for
Mozambique-focused small cap oil
explorer Cove Energy, which jumped
25 per cent.
Europes largest drinks can maker
Rexam was the top FTSE 100 gainer,
up 7.4 per cent after it put its under-
performing personal care business up
for sale and said it would look to
return cash to shareholders, sending
its shares to their highest level in
nearly four years.
Outsourcing firm Capita was also
in demand ahead of full-year results
due today, up 6.5 per cent supported
by the award of a managed services
contract for the training of British
civil servants, worth 50m per
annum for two years.
US blue chips were also modestly
lower by Londons close, down 0.2 per-
cent as concern over the weak
Eurozone data countered solid US
existing home sales.
FTSE down as investors look
again at weak Eurozone data
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 Cookson
650
550
600
500
450
Dec Jan Feb
p
640.00
22 Feb
COOKSON
Deutsche Bank has upgraded the materials specialist to buy from
hold and upped its target price from 6 to 8, citing low consensus
forecasts and a very inexpensive current price as a catalyst. The broker
sees the first half of this year as the low point in the industrial and steel
cycles, and expects reasonable growth next year, so raises its 2012/13
forecasts by 13-16 per cent.
ANALYSIS l Great Portland Estates
370
340
350
360
330
320
310
Dec Jan Feb
p
357.40
22 Feb
GREAT PORTLAND ESTATES
JP Morgan Cazenove says the West End-focused developer is its preferred
play in the sector, and upgrades it to overweight with a 21 per cent
upside to its new target price of 430p. The broker says Great Portlands
recent share weakness is unjustified, having underperformed the sector by
five per cent since July, despite a strong underlying performance and sig-
nificant pre-lets, including UBM and Savills.
ANALYSIS l AMEC
1,100
1,000
1,050
900
950
850
Dec Jan Feb
p
1,115.00
22 Feb
AMEC
UBS maintains its buy rating on the oil and gas services firm, but raises
its target price from 1,225p to 1,325p following good second-half results
earlier in the week. The broker says Amecs growth outlook for 2012 is
strong, and welcome news of the companys 400m buyback over the next
12 months. UBS increase revenue estimates by an average of five per cent
from 2012-14, but reduces operating income for this year by two per cent.
p
28Nov 16Dec 10Jan 17Feb 30Jan
6,000
5,200
5,000
5,400
5,600
5,800
ANALYSIS l FTSE
5,916.55
22 Feb
Accor
Hotel operator Accor has appointed Thomas
Dubaere as managing director for UK and
Ireland. Dubaere has worked for Accor for over
22 years, most recently as managing director,
budget brands Accor UK & Ireland. Dubaere
began his career with Accor in Belgium in 1990
at the Novotel Bruges Centre, and held several
general manager positions before being appoint-
ed delegate director economy brands Belgium in
2004, and then director of operations economy
brands Belgium and Luxembourg in 2005.
News
INVESTMENT BANKING
NICK STEVENS, EXIMIUS
T
O attract attention in 2012s
investment banking market
you need to show you can
move the revenue or cost nee-
dle singlehandedly. Top revenue pro-
ducers are always in demand, people
with senior relationships with the
movers and shakers in Bric economies
in particular. Qualified professionals
with the knowledge and relationships
to reduce the need to hold capital, or
avoid FSA levies, are attracting exciting
packages and building their careers. If you
can drive revenue in, drive cost out, or
keep cash in the business, 2012 is
your year.
RISK MANAGEMENT
RICHARD PICKARD, OLIVER JAMES
W
ITHIN banking, candidates
who can relate regulatory liq-
uidity risk to the bigger pic-
ture of bank funding and
balance sheet management are still
sought after. As a consequence of the
impending implementation of the Volcker
rule a large amount of proprietary trading
operations will close, resulting in invest-
ment banks possibly losing risk managers,
who prefer to work in a trading environ-
ment, to hedge funds. The Big Four consul-
tancies continue to show interest in
candidates with knowledge of Basel II &
III, capital modelling, ICAAP and
stress testing.
PRIVATE EQUITY
CHARLIE HUNT, PRIVATE EQUITY RECRUITMENT
19
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ACCOUNTING & FINANCE
COLIN WEBSTER, BRUIN
M
ARKET conditions mean that current opportunities are much
more heavily weighted towards asset management firms than
investment banks. There is continued demand in financial plan-
ning and analysis and in the minority interest arenas for candi-
dates at a range of levels. In general were
seeing a shift to business partner func-
tions rather than line finance positions.
As always, our clients tend to favour
ACA or CIMA qualified candidates
with excellent academics and well-
rounded skill sets who are able to
supplement high levels of proficien-
cy on Excel and similar applica-
tions with strong presentation
skills. Strong technical skills are
also usually a pre-requisite, either
from an accounting standards or
financial products perspective.
Although job flow is lower than 12
months ago, in financial services there is
always high demand for newly-qualified
ACAs, particularly from the Big Four or
those with financial services audit experi-
ence. Such candidates are able to move into
roles including product control, management
accounting and equity research.
192
jobs in investment
banking/M&A
171
jobs at 75,000-
100,000 pa
18
jobs at 150,000+
pa
1
job in Bermuda
(in-house corporate &
funds lawyer)
95
jobs in private equity
227
jobs at 60,000 -
75,000 pa
116
jobs in IT
T
HE private equity industry is expe-
riencing demand not seen since the
credit crisis began. It is from all
types of funds direct venture cap-
ital/private equity funds, fund of
funds, secondary funds and place-
ment agents. It spans all levels, from
the most junior analyst to the most
senior partner, and in some cases
even founding partners for funds
that are in the process of closing or
have recently raised capital.
Whether this lasts or not is uncer-
tain but there seems to be much
more positivity than six months
ago. The industry focuses on people
with prior private equity experience
for senior roles, and either investment
banking, consulting, accounting, or a rel-
evant MBA for more junior positions.
Private equity is a prestigious indus-
try to work in so candidates
need to shine and show
superior inter-per-
sonal skills
and intellect.
JOBSof theWEEK
W W W. C I T Y A M C A R E E R S . C O M
TODAY ON
CAREERS.COM
20
EMBAs provide real
value for employers
But fewer companies now sponsor their employees degree
27
ANN
GRAHAM
QS TOPEXECUTIVE
FEATURES WRITER
GET TO GRIPS WITH THE STARK CONTRADICTIONS
OF THE CURRENT BUSINESS ENVIRONMENT
ON THE PART-TIME MANCHESTER GLOBAL MBA.
YOULL MASTER CORPORATE FINANCE, STRATEGIC
MANAGEMENT AND MORE THROUGH WORKSHOPS
AT OUR GLOBAL CENTRES IN MANCHESTER, DUBAI,
SINGAPORE, HONG KONG, SHANGHAI, MIAMI
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Think
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MBA
Original Thinking Applied
go.mbs.ac.uk/events
+44 (0) 161 275 7212
Webinar - Getting into
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6pm. Register online.
F
OR MANY executives, one of the
greatest attractions in pursuing
an executive MBA (EMBA)
degree is the return on invest-
ment (ROI) they can guarantee them-
selves upon graduation. EMBA
alumni speak of salary increases,
career advancement and promotion
even before they have completed the
prestigious business school course.
But they are not the only ones
reaping the rewards. As EMBA partic-
ipants return to the workplace
between modules, employers can
gain from immediate implementa-
tion of the latest knowledge gained
from experts in the field.
The EMBA has traditionally been
an employer-employee partnership.
Given the format of the degree
(which allows employees to continue
working while they up-skill with one
of the highest accolades in business
education), company-sponsored can-
didates have been somewhat the
norm in business school classrooms.
In return for sponsorship, these can-
didates have demonstrated loyalty
and commitment to their financial
backer.
However, the availability of EMBA
financial aid is becoming more strin-
gent. Business schools are reporting
more self-funded EMBA participants
as company sponsorship wanes.
With such changes on the financial
front, who is really benefiting from
the EMBA experience?
SELF-FUNDING ON THE RISE
John Lees, executive director of the
EMBA at Warwick Business School
says that, as recently as 2010, 73 per
cent of the schools EMBA students
received full sponsorship from their
companies. This year that number
has dropped to 55 per cent.
We have seen the overall level of
[company] sponsorship drop over the
past three years, Lees says.
However, there hasnt been a drop
in students on the [EMBA] pro-
gramme there are simply more
individuals paying their own way.
Kristen Neymarc, associate direc-
tor at HEC Paris, one of Europes
most prestigious business schools,
has also seen a change. The overall
picture, with certain exceptions, is
for around one third [of candidates]
to receive full funding from their
aware of the true value of the
degree, and what EMBA graduates
can bring to the workplace? I think
employers still need to develop an
understanding of how best to make
the most of an employee with an
EMBA, says Bailey. We are seeing
loyalty from the candidate to the
organisation that has sponsored
them. But the organisation and the
managers havent fully understood
how best to utilise the candidate or
understood the value of the degree
particularly upon the candidates
return to the workforce.
IDENTIFYING EXPECTATIONS
Bridging this gap, and providing
organisations with opportunities to
fully appreciate the value of the
EMBA, is a key focus for business
schools. Steve Seymour, director of
MBA programmes at Ashridge
Business School, says it is possible to
demonstrate significant value to the
sponsoring organisation. Our pro-
gramme provides a tangible ROI
from both content and recommen-
dations, Seymour says. Students
get 60 to 80 days of internal consul-
tancy, 13 work-based assignments
covering areas such as strategy, oper-
ations, finance, marketing, informa-
tion systems, and HR, the
opportunity to reappraise the busi-
ness from the inside-out and an
improved management skills base,
he says.
Dr Claudia Jonczyk, associate pro-
fessor of organisational behaviour
studies, and academic director of the
EMBA London track at ESCP Europe
Business School, says that more than
ever employers need to be reassured
that sponsoring a key executive to
pursue an EMBA is not giving them
the key that they need to unlock jobs
with other companies. While it may
be true that some EMBA graduates
use their new found skills and confi-
dence to change jobs, it is equally
true even more so now than ever
due to the ongoing effects of the
financial downturn that the EMBA
graduates objective is to rise or
maintain strong footing within his
or her own organisation, she says.
This goes hand-in-hand with partic-
ipants placing great value on
increasing their employability by
doing an EMBA.
The EMBA continues to provide
real value for employees and employ-
ers alike. But the true worth of an
executive MBA lies in all those
involved ensuring that they make
the most of the opportunities it
uncovers.
Ann Graham is senior features writer
for the QS TopExecutive Guide.
employers, one third to receive part
funding in such areas as travel and
expenses, and the balance to be fully
self-funded, which is definitely an
increase on previous years, she says.
Thats not to say that company
sponsorship is a thing of the past.
Organisations are still prepared to
fund the EMBA studies of deserving
employees. Organisations are begin-
ning to select high potential individ-
uals to invest in because they would
rather do that than lose them for
one year (if they studied toward a
full-time MBA), explains Dr Andy
Bailey, director of the EMBA at
Lancaster University Management
School. But organisations that are
sponsoring candidates want a more
immediate return. Theyre placing
greater emphasis on how individuals
can add value to the workforce and
quickly.
But are organisations properly
Employers and employees must bridge the gap between conflicting expectations Picture: GETTY
CAREERS.com
CITYA.M. 23 FEBRUARY 2012
| Business Education
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MEET THE WORLDS TOP
BUSINESS SCHOOLS
Register now for free admission at:
www.topmba.com/cityam
2011 Exhibitors included: Cambridge - Judge, Chicago Booth, Cornell, Dartmouth
- Tuck, EMLYON, ESADE, ESSEC, IE Business School, IMD, INSEAD, London
Business School, RSM Erasmus, SDA Bocconi, Thunderbird and many more...
LONDONS BIGGEST MBA AND BUSINESS EDUCATION FAIRS
3
rd

M
a
rch
S
aturday
Queen Elizabeth I I Conference Centre
London SW1P3EE
1pm-6pm

h
3
rd
MM
a
rcch
Both sides can see return on investment, says Tom Welsh
How to get your firm
to pay for your EMBA
MEET THE WORLDS TOP
BUSINESS SCHOOLS
Register now for free admission at:
www.topmba.com/cityam
2011 Exhibitors included: Cambridge - Judge, Chicago Booth, Cornell, Dartmouth
- Tuck, EMLYON, ESADE, ESSEC, IE Business School, IMD, INSEAD, London
Business School, RSM Erasmus, SDA Bocconi, Thunderbird and many more...
LONDONS BIGGEST MBA AND BUSINESS EDUCATION FAIRS
3
rd

M
a
rch
S
aturday
Queen Elizabeth I I Conference Centre
London SW1P3EE
1pm-6pm

h
3
rd
MM
a
rcch
for the employees services.
Similarly, although general skills
improvement may be useful, it must
be linked directly to the businesss
development plans. The LBS suggests
associating specific EMBA courses to
particular future benefits for the
company. An international assign-
ment in India, for example, could
improve management competency in
outsourcing decisions.
The proposal must do more than
offer a positive case for employer
sponsorship. Companies will be con-
cerned about staff retention and the
employee must offer reassurances
that they plan to stay on post-EMBA.
Cook recommends citing evidence
that employer sponsorship can gen-
erate employee loyalty as well as
development opportunities.
Even if full sponsorship is unlikely,
potential students could suggest
other avenues of support. Financial
help need not stretch to payment of
fees and companies may be willing to
fund expenses, travel, or time off.
All this should be discussed in an
integrated conversation between
employer and employee. Both sides
may recognise the benefits of an
EMBA but these benefits should be
assimilated within a clear career pro-
gression plan. Often business schools
can assist with this planning.
Steve Cousins, MBA recruitment
and admissions manager at Cass, has
seen students fail to consider closely
enough their career progression after
the EMBA. A full and frank discussion
must address how the employee will
use any new skills and where oppor-
tunities exist within the company for
promotion. The result should be
greater clarity over which EMBA is
most appropriate for the executive.
Although sponsorship may generate
loyalty, lack of development post-
EMBA may also occasion disappoint-
ment.
Cousins stresses that employer
sponsorship is not right for everyone.
Companies often attach conditions
that may outweigh financial bene-
fits and the executive who aspires to
an entrepreneurial turn in his career,
for example, may not benefit from
the average two-year retention con-
tract.
Ultimately, therefore, a sponsor-
ship proposal should create a realistic
development plan for the employee
just as much as convince the compa-
ny of the value of its investment. Company sponsorship can pay off for the well-prepared employee Picture: GETTY
A
LTHOUGH executive MBAs can
offer tangible benefits to both
employees and employers,
they also impose large upfront
costs. A course at Kellogg/Hong Kong
UST Business School, the world's lead-
ing programme, is highly-priced at
$143,300 (91,300). The London
Business School (LBS) charges a more
conservative 58,900.
Many students ask their employers
to meet this burden. But some busi-
ness schools have seen a sharp decline
in employer sponsorship. The Cass
Business School has recently shifted
its focus to attracting a burgeoning
market in self-funders.
Potential students can still con-
vince companies to sponsor their
studies. As with all investments, how-
ever, employers will require a well-
researched business proposal before
they fork out the money.
This proposal should focus on
return from investment what the
company will get from paying for the
degree. Louise Cook of Kaplan Test
Prep and Admissions, the UKs largest
provider of admissions consulting
services, recommends highlighting
new skills and contacts that will
allow the company to charge more
22
27
CAREERS.com
| Business Education
LON GD ONCE FIX AM...........1754.75 17.75
SILVER LDN FIX AM ..................34.16 0.03
MAPLE LEAF 1 OZ...................809.00 2.50
LON PLATINUM AM................1693.00 26.00
LON PALLADIUM AM ...............711.00 10.00
ALUMINIUM CASH .................2175.00 45.50
COPPER CASH ......................8324.00 92.00
LEAD CASH...........................2056.50 29.00
NICKEL CASH......................19985.00 390.00
TIN CASH.............................23745.00 220.00
ZINC CASH ............................2006.00 56.00
BRENT SPOT INDEX................120.51 -0.01
SOYA .....................................1271.00 3.50
COCOA..................................2456.00 67.00
COFFEE...................................204.65 4.60
KRUG ..........................................0.00 13.20
WHEAT ....................................166.93 0.17
AIR LIQUIDE........................................97.47 0.23 100.65 80.90
ALLIANZ..............................................89.82 -0.78 108.70 56.16
ANHEUS-BUSCH INBEV ....................49.61 0.01 50.04 33.85
ARCELORMITTAL...............................16.19 -0.45 27.40 10.47
AXA......................................................12.27 -0.18 15.97 7.88
BANCO SANTANDER...........................6.37 -0.17 8.86 4.94
BASF SE..............................................64.15 -0.85 70.22 42.19
BAYER.................................................56.07 -0.57 59.44 35.36
BBVA......................................................6.89 -0.18 8.98 4.94
BMW ....................................................70.95 -0.95 73.85 43.49
BNP PARIBAS.....................................36.40 -1.06 58.55 22.72
CARREFOUR ......................................17.93 -0.38 31.59 14.66
CRH PLC .............................................16.08 -0.04 17.40 10.28
DAIMLER.............................................47.85 -0.13 53.95 29.02
DANONE..............................................50.11 -0.21 53.16 41.92
DEUTSCHE BANK..............................33.04 -0.82 47.94 20.79
DEUTSCHE BOERSE .........................50.31 -1.52 57.78 35.65
DEUTSCHE TELEKOM.........................8.97 -0.06 11.38 7.88
E.ON.....................................................16.80 -0.05 24.98 12.50
ENEL......................................................3.02 -0.04 4.86 2.78
ENI .......................................................17.50 0.07 18.18 11.83
FRANCE TELECOM............................11.67 0.22 16.65 11.09
GDF SUEZ ...........................................19.63 -0.20 29.88 17.65
GENERALI ASS...................................12.39 0.49 16.85 10.34
IBERDROLA..........................................4.67 -0.07 6.05 4.16
INDITEX ...............................................68.77 0.00 69.85 50.92
ING GROEP CVA...................................6.62 -0.20 9.50 4.21
INTESA SANPAOLO.............................1.48 -0.05 2.38 0.85
KON.PHILIPS ELECTR.......................15.78 -0.47 24.12 12.01
L'OREAL..............................................85.06 -0.13 91.24 68.83
LVMH..................................................126.10 -1.50 132.65 94.16
MUNICH RE.......................................108.95 -1.35 125.30 77.80
NOKIA....................................................4.18 -0.04 6.75 3.33
REPSOL YPF.......................................20.88 0.00 24.90 17.31
RWE.....................................................32.83 -0.74 53.11 21.15
SAINT-GOBAIN...................................36.12 -0.63 47.64 26.07
SANOFI ................................................56.11 -0.43 57.42 42.85
SAP......................................................49.43 -0.22 49.90 32.88
SCHNEIDER ELECTRIC.....................50.70 2.86 61.83 35.00
SIEMENS .............................................74.84 -0.13 99.39 62.13
SOCIETE GENERALE.........................23.23 -1.08 52.29 14.32
TELECOM ITALIA..................................0.81 -0.02 1.16 0.70
TELEFONICA ......................................13.06 -0.13 18.58 12.50
TOTAL..................................................41.85 0.05 44.55 29.40
UNIBAIL-RODAMCO SE...................143.05 -1.95 162.95 123.30
UNICREDIT............................................4.06 -0.16 13.00 2.20
UNILEVER CVA...................................25.62 -0.01 27.16 20.90
VINCI ....................................................38.36 -0.49 45.48 28.46
VIVENDI ...............................................16.31 -0.26 21.37 14.10
VOLKSWAGEN VORZ ......................142.45 -2.30 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5916.55 -11.65 -0.20
FTSE 250 INDEX. . . . . . . . 11449.23 69.69 0.61
FTSE UK ALL SHARE . . . . 3063.47 -2.54 -0.08
FTSE AIMALL SH . . . . . . . . 820.20 -2.86 -0.35
DOWJONES INDUS 30 . . 12938.60 -27.09 -0.21
S&P 500 . . . . . . . . . . . . . . . 1357.66 -4.55 -0.33
NASDAQ COMPOSITE . . . 2933.17 -15.40 -0.52
FTSEUROFIRST 300 . . . . . 1077.07 -8.31 -0.77
NIKKEI 225 . . . . . . . . . . . . . 9554.00 90.98 0.96
DAX 30 PERFORMANCE. . 6843.87 -64.31 -0.93
CAC 40 . . . . . . . . . . . . . . . . 3447.37 -17.87 -0.52
SHANGHAI SE INDEX . . . . 2403.59 22.16 0.93
HANG SENG. . . . . . . . . . . 21549.28 70.56 0.33
S&P/ASX 20 INDEX . . . . . . 2561.90 0.00 0.00
ASX ALL ORDINARIES . . . 4372.10 0.00 0.00
BOVESPA SAO PAOLO. . 66092.77 -110.73 -0.17
ISEQ OVERALL INDEX . . . 3166.84 -16.88 -0.53
STRAITS TIMES . . . . . . . . . 2904.76 -1.93 -0.07
IGBM. . . . . . . . . . . . . . . . . . . 870.80 -11.75 -1.33
SWISS MARKET INDEX. . . 6192.42 -45.40 -0.73
Price Chg %chg
3M........................................................87.76 0.16 98.19 68.63
ABBOTT LABS ...................................56.23 0.07 56.84 46.28
ALCOA ................................................10.38 -0.03 18.47 8.45
ALTRIA GROUP..................................29.65 0.03 30.40 23.20
AMAZON.COM..................................180.58 -1.68 246.71 160.59
AMERICAN EXPRESS........................52.79 -0.06 53.80 41.30
AMGEN INC.........................................66.79 0.10 70.00 47.66
APPLE...............................................513.04 -1.81 526.29 310.50
AT&T....................................................30.28 -0.06 31.94 27.27
BANK OF AMERICA.............................7.95 -0.16 14.89 4.92
BERKSHIRE HATAW B.......................78.93 -0.70 87.65 65.35
BOEING CO.........................................76.06 0.34 80.65 56.01
CATERPILLAR..................................115.81 0.81 116.55 67.54
CHEVRON.........................................107.50 -0.91 110.99 86.68
CISCO SYSTEMS................................20.12 -0.24 20.49 13.30
CITIGROUP.........................................32.36 -1.00 49.60 21.40
COCA-COLA.......................................69.25 0.43 71.77 61.29
COMCAST CLASS A..........................29.28 0.21 29.29 19.19
CONOCOPHILLIPS.............................74.13 0.30 81.80 58.65
CVS/CAREMARK................................43.69 -0.32 45.00 31.30
DU PONT(EI) DE NMR........................51.28 -0.32 57.50 37.10
EXXON MOBIL....................................86.92 0.35 88.23 63.47
GENERAL ELECTRIC.........................19.39 -0.02 21.60 14.02
GOOGLE A........................................607.94 -6.06 670.25 473.02
HEWLETT PACKARD.........................28.94 -0.41 48.80 19.92
HOME DEPOT.....................................46.57 -0.35 48.07 28.13
IBM.....................................................193.87 0.48 194.90 151.71
INTEL CORP .......................................26.73 -0.43 27.50 19.16
J.P.MORGAN CHASE.........................38.07 -0.39 48.13 27.85
JOHNSON & JOHNSON.....................65.00 -0.04 68.05 55.76
KRAFT FOODS A................................37.99 -0.58 39.06 24.30
MC DONALD'S CORP ......................100.66 0.17 102.22 72.89
MERCK AND CO. NEW......................38.22 0.09 39.43 29.47
MICROSOFT........................................31.27 -0.17 31.68 23.65
OCCID. PETROLEUM.......................103.26 -1.15 117.89 66.36
ORACLE CORP...................................28.55 -0.19 36.50 24.72
PEPSICO.............................................63.10 -0.04 71.89 58.50
PFIZER ................................................21.36 0.14 22.17 16.63
PHILIP MORRIS INTL .........................82.29 0.02 82.77 60.45
PROCTER AND GAMBLE ..................64.44 0.02 67.72 56.57
QUALCOMM INC ................................62.55 -0.23 62.94 45.98
SCHLUMBERGER ..............................80.00 1.42 95.64 54.79
TRAVELERS CIES..............................58.94 -0.33 64.17 45.97
UNITED TECHNOLOGIE ....................83.95 -0.01 91.83 66.87
UNITEDHEALTH GROUP...................55.18 -0.14 55.64 41.27
VERIZON COMMS ..............................38.21 -0.28 40.48 32.28
VISA CL A..........................................116.36 2.16 117.18 70.45
WAL-MART STORES..........................58.60 -1.47 62.63 48.31
WALT DISNEY CO ..............................41.27 -0.30 44.34 28.19
WELLS FARGO & CO.........................30.59 -0.37 33.07 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 ..................0.279 0.00
LIBOR Euro - 12 months ................1.632 -0.01
LIBOR USD - overnight...................0.140 0.00
LIBOR USD - 12 months.................1.066 0.00
HaIifax mortgage rate .....................3.990 -0.02
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.500 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................3.150 -0.06
European repo rate.........................0.189 0.00
Euro Euribor ....................................0.362 0.00
The vix index ...................................18.15 -0.04
The baItic dry index ........................706.0 -9.00
Markit iBoxx...................................241.00 1.71
Markit iTraxx..................................132.08 0.95
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
BAE Systems . . . . . .324.9 4.3 340.8 248.1
Chemring Group . . . .437.4 3.9 736.5 368.8
Cobham . . . . . . . . . . .189.4 2.1 236.5 165.9
Meggitt . . . . . . . . . . . .388.2 7.5 397.6 304.9
QinetiQ Group . . . . . .150.4 2.0 150.5 101.5
RoIIs-Royce HoIdi . . .801.5 2.5 803.6 557.5
Senior . . . . . . . . . . . . .188.3 2.4 190.6 132.6
UItra EIectronics . . .1715.0 44.0 1794.0 1305.0
GKN . . . . . . . . . . . . . .226.2 0.7 245.0 157.0
BarcIays . . . . . . . . . . .239.2 -8.6 321.9 138.9
HSBC HoIdings . . . . .575.6 -3.9 711.1 463.5
LIoyds Banking Gr . . .35.4 -0.3 66.3 21.8
RoyaI Bank of Sco . . .27.3 -0.9 47.7 17.3
Standard Chartere .1629.0 -12.5 1712.5 1169.5
AG Barr . . . . . . . . . .1225.0 3.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .381.9 1.9 444.0 289.9
Diageo . . . . . . . . . . .1500.5 17.0 1509.5 1112.0
SABMiIIer . . . . . . . . .2552.0 8.0 2563.5 1979.0
AZ EIectronic Mat . . .314.0 -2.7 338.1 206.1
Croda Internation . .2146.0 23.0 2200.0 1551.0
EIementis . . . . . . . . . .166.6 -0.6 187.4 107.5
Johnson Matthey . .2319.0 -14.0 2351.0 1523.0
Victrex . . . . . . . . . . .1338.0 -12.0 1590.0 1025.0
YuIe Catto & Co . . . . .217.0 1.5 253.0 148.0
C/$ 1.3243 0.0010
C/ 0.8450 0.0065
C/ 106.32 0.7615
/C 1.1834 0.0093
/$ 1.5675 0.0107
/ 125.83 0.0792
FTSE 100
5916.55
11.65
FTSE 250
11449.23
69.69
FTSE ALLSHARE
3063.47
2.54
DOW
12938.60
27.09
NASDAQ
2933.17
15.40
S&P 500
1357.66
4.55
Smith (DS) . . . . . . . . .174.0 7.4 183.4 113.3
Smiths Group . . . . .1066.0 19.0 1353.0 869.5
Brown (N.) Group . . .252.7 2.5 304.5 227.0
Carpetright . . . . . . . . .639.5 2.5 770.5 375.0
Debenhams . . . . . . . . .72.9 0.9 74.8 51.2
Dignity . . . . . . . . . . . .808.5 22.5 854.5 674.0
Dixons RetaiI . . . . . . .14.7 -0.3 20.7 9.4
DuneImGroup . . . . . .506.5 -5.0 524.5 383.9
HaIfords Group . . . . .318.9 0.4 405.9 268.6
Home RetaiI Group . .105.7 -3.3 228.5 72.5
Inchcape . . . . . . . . . .374.8 -0.3 425.4 268.1
JD Sports Fashion . .814.0 -2.0 1030.0 570.0
Kesa EIectricaIs . . . . .80.7 -1.1 151.4 60.2
Kingfisher . . . . . . . . .276.8 -0.7 287.1 217.0
Marks & Spencer G . .349.1 -5.8 402.2 301.8
Next . . . . . . . . . . . . .2728.0 -39.0 2810.0 1868.0
Sports Direct Int . . . .290.0 0.2 292.9 172.9
WH Smith . . . . . . . . . .536.0 -5.5 559.0 433.8
Smith & Nephew . . . .629.0 2.5 725.0 521.0
Synergy HeaIth . . . . .855.5 3.5 981.0 808.0
Barratt DeveIopme . .139.8 10.1 140.0 67.5
BeIIway . . . . . . . . . . . .815.5 21.5 818.0 540.5
BerkeIey Group Ho .1370.0 25.0 1376.6 960.0
BaIfour Beatty . . . . . .289.4 0.7 357.3 214.6
CRH . . . . . . . . . . . . .1351.0 -9.0 1687.0 1053.0
GaIIiford Try . . . . . . . .545.0 44.0 567.4 332.8
Kier Group . . . . . . . .1489.0 37.0 1489.0 1097.0
Drax Group . . . . . . . .508.0 -10.5 581.5 371.9
SSE . . . . . . . . . . . . . .1297.0 6.0 1423.0 1184.0
Domino Printing S . .660.0 0.0 705.0 434.3
HaIma . . . . . . . . . . . . .389.7 7.1 429.6 306.3
Laird . . . . . . . . . . . . . .166.6 -1.4 207.0 127.9
Morgan CrucibIe C . .355.4 4.2 357.1 224.0
Oxford Instrument .1152.0 17.0 1162.1 600.5
Renishaw . . . . . . . . .1450.0 -23.0 1886.0 800.0
Spectris . . . . . . . . . .1717.0 35.0 1724.0 1039.0
Aberforth SmaIIer . . .628.5 0.0 714.0 494.0
AIIiance Trust . . . . . .371.0 2.2 392.7 310.2
Bankers Inv Trust . . .412.3 -1.2 428.0 346.5
BH GIobaI Ltd. GB .1180.0 -4.0 1212.0 1058.0
BH GIobaI Ltd. US . . . .11.8 -0.1 12.2 10.4
BH Macro Ltd. EUR . . .19.7 0.1 20.2 16.3
BH Macro Ltd. GBP 2029.0 -4.0 2078.0 1661.0
BH Macro Ltd. USD . . .19.6 -0.1 20.2 16.2
BIackRock WorId M .721.0 5.0 815.5 574.5
BIueCrest AIIBIue . . .164.9 1.4 176.2 160.6
British Assets Tr . . . .129.5 1.0 139.4 109.0
British Empire Se . . .452.2 -2.8 533.0 404.0
CaIedonia Investm .1541.0 -7.0 1809.0 1337.0
City of London In . . .298.6 -0.4 306.9 257.0
Dexion AbsoIute L . .139.0 -1.3 151.0 130.0
Edinburgh Dragon . .253.0 3.5 253.9 201.4
Edinburgh Inv Tru . . .492.0 2.0 492.9 414.9
EIectra Private E . . .1629.0 2.0 1755.0 1287.0
F&C Inv Trust . . . . . . .311.0 0.3 327.9 261.5
FideIity China Sp . . . . .87.9 1.2 114.3 70.0
FideIity European . .1125.0 3.0 1287.0 912.0
HeraId Inv Trust . . . . .525.0 3.0 545.5 419.0
HICL Infrastructu . . . .119.4 -0.1 121.3 112.7
Impax Environment .104.0 0.5 125.4 88.5
John Laing Infras . . .109.8 0.1 110.6 103.4
JPMorgan American .934.0 5.0 934.0 721.5
JPMorgan Asian In . .205.0 1.2 244.0 170.1
JPMorgan Emerging .572.0 6.5 610.5 480.1
JPMorgan European .739.0 2.5 983.5 624.0
JPMorgan Indian I . . .398.0 -2.4 459.0 313.1
JPMorgan Russian .574.0 0.5 741.0 415.1
Law Debenture Cor . .382.3 1.7 385.0 321.0
MercantiIe Inv Tr . . .1006.0 5.0 1119.0 823.0
Merchants Trust . . . .390.9 -1.1 431.8 341.5
Monks Inv Trust . . . .340.9 2.1 367.9 298.1
Murray Income Tru . .670.0 5.0 673.0 568.0
Murray Internatio . . .984.5 3.5 991.5 818.5
PerpetuaI Income . . .270.3 1.3 276.0 236.5
PersonaI Assets T .34880.0 180.0 34900.030210.0
PoIar Cap TechnoI . .386.0 5.5 386.8 299.5
RIT CapitaI Partn . . .1238.0 -2.0 1360.0 1173.0
Scottish Inv Trus . . . .491.0 3.0 524.0 417.0
Scottish Mortgage . .688.0 -1.5 781.0 565.0
SVG CapitaI . . . . . . . .270.0 3.5 279.8 165.1
TempIe Bar Inv Tr . . .927.0 5.0 952.0 791.0
TempIeton Emergin .629.0 -0.5 684.5 497.0
TR Property Inv T . . .154.2 0.4 206.1 136.2
TR Property Inv T . . . .70.7 0.2 94.0 59.8
Witan Inv Trust . . . . .493.6 2.6 533.0 401.5
3i Group . . . . . . . . . . .194.2 -1.7 313.3 166.9
3i Infrastructure . . . .124.2 -0.1 124.4 113.4
Aberdeen Asset Ma .254.0 -3.2 265.8 167.8
Ashmore Group . . . .386.5 -2.8 420.0 301.5
Brewin DoIphin Ho . .150.4 -1.2 184.7 113.7
CameIIia . . . . . . . . . .9342.0 -75.010950.0 8800.0
CharIes TayIor Co . . .142.5 0.0 165.0 115.6
City of London Gr . . . .66.0 0.0 93.6 61.3
City of London In . . .369.0 -0.5 440.0 304.3
CIose Brothers Gr . . .744.0 3.5 875.0 590.0
CoIIins Stewart H . . . .99.0 0.0 99.5 48.5
F&C Asset Managem .69.5 -0.1 88.1 56.1
Hargreaves Lansdo .465.0 -16.5 646.5 402.5
HeIphire Group . . . . . . .2.1 0.0 17.4 1.4
Henderson Group . . .126.0 -0.3 173.1 95.1
Highway CapitaI . . . . .13.0 0.0 21.0 7.0
ICAP . . . . . . . . . . . . . .395.1 -0.7 541.5 311.6
IG Group HoIdings . .474.5 -5.3 502.5 393.6
Intermediate Capi . . .279.0 -1.7 345.0 197.9
InternationaI Per . . . .223.5 0.9 388.8 148.5
InternationaI Pub . . . .118.3 0.0 121.5 108.6
Investec . . . . . . . . . . .392.6 -2.7 522.0 318.4
IP Group . . . . . . . . . . .115.0 2.0 115.9 36.0
Jupiter Fund Mana . .255.0 2.4 331.6 184.9
Liontrust Asset M . . . .89.9 0.0 91.4 57.9
LMS CapitaI . . . . . . . . .56.9 -0.3 64.8 54.0
London Finance & . . .22.5 0.0 23.5 19.0
London Stock Exch .935.5 -6.5 1076.0 756.5
Lonrho . . . . . . . . . . . . .10.5 -0.3 19.8 8.9
Man Group . . . . . . . . .131.7 -3.1 289.2 104.5
Paragon Group Of . .186.4 -0.2 206.1 134.6
Provident Financi . .1065.0 11.0 1124.0 915.0
Rathbone Brothers .1276.0 1.0 1310.0 977.0
Record . . . . . . . . . . . . .11.5 -0.5 35.5 11.0
RSM Tenon Group . . . .5.9 0.2 53.3 5.6
Schroders . . . . . . . .1579.0 -19.0 1906.0 1183.0
Schroders (Non-Vo .1263.0 -10.0 1554.0 970.0
TuIIett Prebon . . . . . .329.2 -3.4 428.6 262.3
WaIker Crips Grou . . .40.5 0.0 51.5 40.0
BT Group . . . . . . . . . .215.0 -1.0 216.7 161.0
CabIe & WireIess . . . .34.5 0.1 51.2 31.3
CabIe & WireIess . . . .26.3 -0.7 72.6 14.2
COLT Group SA . . . . .98.8 1.8 156.2 84.1
KCOM Group . . . . . . . .71.3 1.1 84.0 58.5
TaIkTaIk TeIecom . . .142.1 -0.6 150.0 118.9
TeIecomPIus . . . . . . .641.0 -0.5 802.0 440.0
Booker Group . . . . . . .75.5 -0.2 80.0 54.5
Greggs . . . . . . . . . . . .552.0 0.0 557.0 445.0
Morrison (Wm) Sup .295.3 0.3 328.0 268.5
Ocado Group . . . . . . .101.4 -1.5 237.0 52.9
Sainsbury (J) . . . . . . .304.9 -1.1 380.0 263.5
Tesco . . . . . . . . . . . . .315.4 -7.3 420.1 312.4
Associated Britis . .1222.0 -1.0 1233.0 940.0
Cranswick . . . . . . . . .838.5 20.0 862.0 588.5
Dairy Crest Group . . .331.6 0.0 409.7 311.0
Devro . . . . . . . . . . . . .312.0 26.6 312.0 232.0
Tate & LyIe . . . . . . . . .695.5 -3.5 720.5 520.0
UniIever . . . . . . . . . .2089.0 13.0 2189.0 1796.0
Mondi . . . . . . . . . . . . .576.5 14.5 664.0 413.5
Centrica . . . . . . . . . . .293.5 -2.2 340.1 278.8
InternationaI Pow . . .338.5 2.3 347.0 279.4
NationaI Grid . . . . . . .646.0 2.5 649.5 543.5
Pennon Group . . . . . .700.0 0.5 737.5 584.5
Severn Trent . . . . . .1531.0 3.0 1600.0 1375.0
United UtiIities . . . . .599.0 -0.5 637.0 551.0
Cookson Group . . . . .640.0 3.0 724.5 395.8
Rexam . . . . . . . . . . . .413.0 28.6 419.9 299.8
RPC Group . . . . . . . .383.7 -0.4 393.2 231.5
Price Chg High Low
Bovis Homes Group .503.5 0.0 514.0 326.5
Persimmon . . . . . . . .612.5 8.5 615.5 374.0
Reckitt Benckiser . .3500.0 -78.0 3597.0 3015.0
Redrow . . . . . . . . . . . .130.0 1.5 136.2 103.5
TayIor Wimpey . . . . . . .49.7 1.2 50.0 28.7
Bodycote . . . . . . . . . .337.0 -7.0 397.7 225.6
Fenner . . . . . . . . . . . .467.1 12.7 467.1 280.0
IMI . . . . . . . . . . . . . . . .965.0 -1.0 1119.0 636.5
MeIrose . . . . . . . . . . .386.3 3.3 388.0 268.0
Northgate . . . . . . . . . .236.5 -3.2 346.7 190.9
Rotork . . . . . . . . . . .2079.0 60.0 2091.0 1501.0
Spirax-Sarco Engi . .2069.0 25.0 2089.0 1649.0
Weir Group . . . . . . .2154.0 2.0 2218.0 1375.0
Evraz . . . . . . . . . . . . .397.0 -15.7 460.5 315.0
Ferrexpo . . . . . . . . . . .326.0 -4.8 499.0 238.7
TaIvivaara Mining . . .284.2 -2.3 589.0 195.2
BBAAviation . . . . . . .203.7 -4.9 229.0 156.0
Stobart Group Ltd . . .125.0 0.3 155.0 112.0
AdmiraI Group . . . . .1037.0 -6.0 1754.0 787.0
AmIin . . . . . . . . . . . . .355.4 -5.0 427.0 270.6
BeazIey . . . . . . . . . . . .148.8 -1.3 151.0 109.6
Informa . . . . . . . . . . . .417.1 -4.7 443.1 313.9
ITE Group . . . . . . . . . .236.5 3.8 258.2 157.7
ITV . . . . . . . . . . . . . . . . .78.9 -0.7 93.5 51.7
Johnston Press . . . . . . .6.5 0.0 12.8 4.1
MecomGroup . . . . . .190.3 -4.0 310.0 134.5
Moneysupermarket. .118.9 -2.5 123.2 84.8
Pearson . . . . . . . . . .1217.0 -1.0 1255.0 1013.0
PerformGroup . . . . .273.7 -3.8 280.0 150.0
Reed EIsevier . . . . . .549.0 -1.5 578.0 461.3
Rightmove . . . . . . . .1348.0 9.0 1408.0 857.0
STV Group . . . . . . . . .107.5 -0.5 168.0 76.3
Tarsus Group . . . . . .148.0 0.5 165.0 119.5
Trinity Mirror . . . . . . . .49.3 0.3 84.3 37.5
UBM . . . . . . . . . . . . . .590.5 0.0 712.5 416.0
UTV Media . . . . . . . . .120.0 0.0 150.0 92.5
WiImington Group . . .86.5 0.5 168.1 78.5
WPP . . . . . . . . . . . . . .802.0 2.5 846.5 578.0
YeII Group . . . . . . . . . . .4.4 -0.1 11.0 3.4
African Barrick G . . .463.0 1.5 616.5 393.5
AIIied GoId Minin . . . .118.9 -1.0 281.3 34.4
AngIo American . . .2709.0 -6.5 3360.5 2138.5
AngIo Pacific Gro . . .315.0 0.0 350.0 237.9
Antofagasta . . . . . . .1319.0 -7.0 1491.0 900.5
Aquarius PIatinum . .142.7 -3.9 405.5 136.7
BHP BiIIiton . . . . . . .2087.0 7.0 2631.5 1667.0
CatIin Group Ltd. . . .419.2 1.1 449.0 334.0
Hiscox Ltd. . . . . . . . . .408.0 -0.3 424.7 340.5
Jardine LIoyd Tho . . .690.0 10.0 764.5 576.0
Lancashire HoIdin . . .790.5 7.5 790.5 532.5
RSA Insurance Gro . .112.5 -1.1 141.2 99.6
Aviva . . . . . . . . . . . . . .372.1 -3.5 477.9 275.3
LegaI & GeneraI G . . .120.5 -1.3 123.8 89.8
OId MutuaI . . . . . . . . .156.8 -1.2 159.6 98.1
Phoenix Group HoI . .568.0 10.5 688.0 451.1
PrudentiaI . . . . . . . . . .711.5 -4.0 777.0 509.0
ResoIution Ltd. . . . . .261.3 0.5 316.1 229.5
St James's PIace . . . .368.4 -4.9 382.5 294.0
Standard Life . . . . . . .232.1 -1.8 244.7 172.0
4Imprint Group . . . . .235.0 -8.0 295.0 200.0
Aegis Group . . . . . . .173.5 4.5 173.9 115.7
BIoomsbury PubIis . .121.8 0.5 138.0 91.3
British Sky Broad . . .688.5 -1.5 850.0 618.5
Centaur Media . . . . . . .45.0 -0.1 67.5 32.5
Chime Communicati .224.5 0.3 298.5 163.0
Creston . . . . . . . . . . . .59.5 0.3 121.0 47.0
DaiIy MaiI and Ge . . .428.0 -3.2 562.0 343.4
Euromoney Institu . .745.0 22.0 745.0 522.5
Future . . . . . . . . . . . . . .12.5 0.3 27.5 8.3
Haynes PubIishing . .198.0 0.0 257.0 192.0
Huntsworth . . . . . . . . .44.8 2.4 79.3 32.3
Bumi . . . . . . . . . . . . . .775.5 3.95 788.57 741.67
Centamin (DI) . . . . . . . .92.4 1.2 154.2 78.5
Eurasian NaturaI . . .722.0 -1.0 979.0 522.0
FresniIIo . . . . . . . . . .1777.0 27.0 2150.0 1302.0
GemDiamonds Ltd. .243.6 10.3 297.5 179.8
GIencore Internat . . .440.4 2.0 531.1 348.0
HochschiId Mining . .504.5 3.5 680.0 365.9
Kazakhmys . . . . . . .1148.0 -15.0 1493.0 730.0
Kenmare Resources . .58.2 -3.4 61.6 31.0
Lonmin . . . . . . . . . . .1057.0 17.0 1880.0 941.0
New WorId Resourc .514.0 0.0 1060.0 409.4
PetropavIovsk . . . . . .737.5 -1.0 1090.0 543.5
PoIymetaI Interna . .1045.0 0.0 1175.0 877.0
RandgoId Resource 7245.0 110.0 7565.0 4425.0
Rio Tinto . . . . . . . . .3662.5 -37.0 4595.0 2712.5
Vedanta Resources 1380.0 -73.0 2518.0 928.0
Xstrata . . . . . . . . . . .1215.0 5.0 1550.0 764.0
Inmarsat . . . . . . . . . . .474.3 -5.1 685.5 389.3
Vodafone Group . . . .173.9 -1.9 182.7 155.1
Genesis Emerging . .522.0 10.5 548.5 424.0
Afren . . . . . . . . . . . . . .140.5 7.8 171.2 73.6
BG Group . . . . . . . . .1508.0 27.5 1564.5 1144.0
BP . . . . . . . . . . . . . . . .497.0 -0.8 499.9 363.2
Cairn Energy . . . . . . .347.3 0.3 531.8 291.9
EnQuest . . . . . . . . . . .124.7 2.9 158.5 85.7
Essar Energy . . . . . .125.2 2.2 525.5 120.0
ExiIIon Energy . . . . . .240.0 -2.0 469.7 184.2
Heritage OiI . . . . . . . .185.2 -3.7 332.2 160.0
Ophir Energy . . . . . . .392.0 26.5 404.4 184.5
Premier OiI . . . . . . . . .439.7 13.4 521.0 310.0
RoyaI Dutch SheII . .2309.0 5.5 2402.0 1883.5
RoyaI Dutch SheII . .2345.5 12.0 2489.0 1890.5
SaIamander Energy .247.0 0.2 317.6 182.3
Soco Internationa . . .330.0 13.4 400.0 278.0
TuIIow OiI . . . . . . . . .1531.0 -12.0 1601.0 945.5
Amec . . . . . . . . . . . . .1115.0 4.0 1207.0 740.5
Hunting . . . . . . . . . . .804.5 12.0 845.0 530.0
Kentz Corporation . .466.4 -5.1 508.0 347.0
LampreII . . . . . . . . . . .334.2 11.1 395.2 220.7
Petrofac Ltd. . . . . . .1593.0 27.0 1603.0 1108.0
Wood Group (John) .725.0 17.0 728.5 469.9
Burberry Group . . . .1434.0 -5.0 1600.0 1092.0
PZ Cussons . . . . . . . .308.5 -2.9 387.9 285.0
Supergroup . . . . . . . .580.0 22.0 1646.0 435.2
AstraZeneca . . . . . .2838.0 -3.5 3194.0 2543.5
BTG . . . . . . . . . . . . . .350.6 1.9 353.4 210.1
Genus . . . . . . . . . . . .1242.0 115.0 1250.0 853.5
GIaxoSmithKIine . . .1409.0 -4.0 1497.0 1138.5
Hikma Pharmaceuti .742.0 6.0 869.0 555.5
Shire PIc . . . . . . . . . .2248.0 23.0 2300.0 1671.0
CapitaI & Countie . . .190.8 -1.5 203.7 144.5
Daejan HoIdings . . .2870.0 -16.0 3030.0 2282.0
F&C CommerciaI Pr .103.0 0.1 108.0 92.6
Grainger . . . . . . . . . . .104.0 -0.5 133.2 77.3
London & Stamford .113.5 0.2 140.0 103.9
SaviIIs . . . . . . . . . . . . .359.6 5.7 427.1 256.2
UK CommerciaI Pro . .73.5 -0.4 85.5 65.1
Unite Group . . . . . . . .185.7 -5.0 224.1 152.9
Big YeIIow Group . . .295.6 5.6 344.4 218.0
British Land Co . . . . .472.0 -5.3 629.5 444.0
CapitaI Shopping . . .334.8 -5.1 408.6 288.7
Derwent London . . .1724.0 24.0 1880.0 1400.0
Great PortIand Es . . .357.4 8.9 445.0 312.9
Hammerson . . . . . . . .388.4 -7.5 490.9 345.2
Hansteen HoIdings . . .73.0 -0.8 89.5 68.0
Land Securities G . . .672.5 -10.5 885.0 612.0
SEGRO . . . . . . . . . . . .231.8 0.1 331.3 195.0
Shaftesbury . . . . . . . .496.4 -1.1 539.0 441.2
Aveva Group . . . . . .1716.0 24.0 1799.0 1298.0
Computacenter . . . . .409.3 -0.3 490.0 324.7
Fidessa Group . . . . .1706.0 -35.0 2109.0 1444.0
Invensys . . . . . . . . . . .213.0 -1.1 357.3 180.9
Logica . . . . . . . . . . . . .86.7 5.3 145.3 59.0
Micro Focus Inter . . .447.7 -1.7 458.4 242.9
Misys . . . . . . . . . . . . .331.0 -7.0 420.2 214.9
Sage Group . . . . . . . .306.0 0.4 310.1 231.7
SDL . . . . . . . . . . . . . . .665.0 -5.0 711.5 586.0
TeIecity Group . . . . . .681.5 0.5 694.5 450.5
Aggreko . . . . . . . . . .2158.0 -10.0 2190.0 1394.5
Ashtead Group . . . . .247.5 3.6 252.5 99.4
Atkins (WS) . . . . . . . .759.5 -0.5 820.0 490.2
Babcock Internati . . .737.0 15.5 758.0 542.0
Berendsen . . . . . . . . .473.0 6.0 568.0 402.7
BunzI . . . . . . . . . . . . .917.0 8.5 924.5 676.5
Cape . . . . . . . . . . . . . .437.7 -2.2 591.5 295.0
Capita . . . . . . . . . . . . .688.5 42.0 786.5 611.5
CariIIion . . . . . . . . . . .339.1 5.0 403.2 281.0
De La Rue . . . . . . . . .976.5 -2.5 1001.0 710.0
DipIoma . . . . . . . . . . .390.9 -1.3 425.5 263.5
EIectrocomponents .243.1 0.2 294.9 182.2
Experian . . . . . . . . . . .949.0 7.0 960.0 665.0
FiItrona PLC . . . . . . . .414.0 6.5 416.3 293.0
G4S . . . . . . . . . . . . . . .279.7 1.1 291.0 219.9
Hays . . . . . . . . . . . . . . .87.4 6.4 130.0 58.9
Homeserve . . . . . . . .224.4 -1.6 532.0 218.5
Howden Joinery Gr . .117.5 1.3 122.2 93.1
Interserve . . . . . . . . . .314.9 1.9 341.3 239.8
Intertek Group . . . . .2259.0 21.0 2264.0 1738.0
MichaeI Page Inte . . .451.8 13.7 567.0 323.0
Mitie Group . . . . . . . .265.6 1.4 271.0 195.9
PayPoint . . . . . . . . . . .583.0 3.5 585.5 330.4
Premier FarneII . . . . .215.8 -0.2 308.8 144.5
Regus . . . . . . . . . . . . .112.3 -4.1 119.0 64.0
RentokiI InitiaI . . . . . . .79.2 -0.4 100.9 58.2
RPS Group . . . . . . . . .233.9 5.8 253.0 156.6
Serco Group . . . . . . .539.0 -1.0 618.5 458.0
Shanks Group . . . . . .106.9 0.6 130.9 90.8
SIG . . . . . . . . . . . . . . .112.6 1.1 153.5 77.0
Travis Perkins . . . . .1059.0 48.0 1090.0 715.0
WoIseIey . . . . . . . . .2415.0 -4.0 2465.0 1404.0
ARM HoIdings . . . . . .578.5 -3.5 645.0 464.0
CSR . . . . . . . . . . . . . .251.0 -9.9 391.4 154.1
Imagination Techn . .600.0 -3.0 630.5 296.9
Spirent Communica .136.1 -0.1 160.0 105.8
British American . .3133.0 19.0 3148.0 2300.0
ImperiaI Tobacco . .2477.0 -4.0 2519.0 1878.0
Betfair Group . . . . . . .883.5 6.5 1030.0 567.0
Bwin.party Digita . . .165.2 -2.5 204.0 100.6
CarnivaI . . . . . . . . . .1903.0 -39.0 2766.0 1742.0
Compass Group . . . .632.0 2.0 641.0 512.5
Domino's Pizza UK . .460.0 -16.3 526.0 377.0
easyJet . . . . . . . . . . . .459.0 -5.5 476.1 301.0
FirstGroup . . . . . . . . .303.2 1.0 371.3 298.5
Go-Ahead Group . . .1327.0 8.0 1598.0 1190.0
Greene King . . . . . . .505.5 2.0 521.5 410.0
InterContinentaI . . .1420.0 -3.0 1440.0 955.0
InternationaI Con . . .165.2 -4.7 258.7 132.0
JD Wetherspoon . . . .408.4 1.4 468.3 380.5
Ladbrokes . . . . . . . . .153.9 -0.7 156.1 114.0
Marston's . . . . . . . . . . .98.0 -0.4 112.0 84.6
MiIIennium& Copt . .491.6 3.6 598.5 371.2
MitcheIIs & ButIe . . . .272.0 1.8 336.8 215.6
NationaI Express . . .223.1 -2.8 270.2 201.6
Rank Group . . . . . . . .138.4 8.5 153.7 109.5
Restaurant Group . . .292.0 -7.1 335.0 254.9
Spirit Pub Compan . . .55.3 0.5 57.8 35.3
Stagecoach Group . .266.8 -1.2 287.4 200.0
TUI TraveI . . . . . . . . . .202.0 -5.3 250.0 136.7
Whitbread . . . . . . . .1704.0 -2.0 1826.0 1409.0
WiIIiamHiII . . . . . . . . .235.7 -0.6 244.1 176.8
Abcam . . . . . . . . . . . .324.5 -3.0 460.0 320.0
Advanced MedicaI . . .91.8 0.8 96.0 64.8
AIbemarIe & Bond . .355.0 0.0 400.1 281.0
Amerisur Resource . .23.0 0.3 29.0 9.5
Andor TechnoIogy . .557.5 -2.5 685.0 387.1
ArchipeIago Resou . . .69.0 1.3 79.0 55.5
ASOS . . . . . . . . . . . .1908.0 33.0 2468.0 1142.0
AureIian OiI & Ga . . . .21.0 -0.3 92.0 16.0
Avanti Communicat .264.3 -5.3 572.5 248.5
BIinkx . . . . . . . . . . . . . .85.0 -1.0 158.0 50.5
Borders & Souther . . .79.5 0.8 80.5 43.5
BowLeven . . . . . . . . .123.0 5.3 382.3 62.0
Brooks MacdonaId 1265.0 62.5 1372.5 940.0
CIuff GoId . . . . . . . . . . .96.5 1.5 125.8 66.5
Cove Energy . . . . . . .194.0 39.5 200.0 61.0
Daisy Group . . . . . . .108.5 0.5 127.0 88.0
EMIS Group . . . . . . . .430.0 7.5 580.0 397.5
Faroe PetroIeum . . . .174.5 2.0 190.0 130.0
GuIfsands PetroIe . . .174.5 7.0 342.0 142.5
GWPharmaceuticaI . .95.3 6.3 130.0 78.5
H&T Group . . . . . . . . .335.0 5.0 395.0 277.0
Hargreaves Servic .1238.0 23.0 1238.0 855.0
HeaIthcare Locums . . . .3.0 0.0 3.3 3.0
Immunodiagnostic . .408.0 -47.0 1218.0 288.8
ImpeIIamGroup . . . .320.0 -1.5 387.5 225.0
Iomart Group . . . . . . .144.5 2.3 151.0 85.5
James HaIstead . . . . .502.5 -1.0 515.0 410.0
London Mining . . . . .293.0 0.8 436.5 257.5
Lupus CapitaI . . . . . .124.8 -0.3 150.0 86.0
M. P. Evans Group . .446.0 0.0 475.0 371.0
Majestic Wine . . . . . .421.0 5.0 510.0 315.0
May Gurney Integr . .297.0 1.0 302.0 234.0
Monitise . . . . . . . . . . . .37.5 -0.3 40.0 20.5
MuIberry Group . . . .1907.0 -13.0 1951.0 1133.0
Nanoco Group . . . . . . .62.0 -2.0 93.3 38.0
NauticaI PetroIeu . . .359.5 10.5 452.0 223.5
NichoIs . . . . . . . . . . . .642.0 14.5 642.0 410.0
Numis Corporation . .100.0 1.0 121.0 72.0
Pan African Resou . . .17.5 -0.3 18.0 9.5
Patagonia GoId . . . . . .38.8 -2.3 70.0 36.8
Prezzo . . . . . . . . . . . . .65.6 0.0 71.5 53.5
Pursuit Dynamics . . . .87.0 -1.5 392.0 67.0
Rockhopper ExpIor .386.0 6.5 394.0 141.0
RWS HoIdings . . . . . .530.0 11.5 534.4 350.0
Secure Trust Bank .1047.5 0.0 1070.0 755.0
Songbird Estates . . .110.0 -2.5 160.3 103.0
VaIiant PetroIeum . . .495.3 1.5 645.0 400.0
Young & Co's Brew . .685.0 17.5 712.0 565.0
Genus . . . . . . . . . . . .1242.0 10.2
Devro . . . . . . . . . . . . .312.0 9.3
GaIIiford Try . . . . . . . .545.0 8.8
Hays . . . . . . . . . . . . . . .87.4 7.9
Barratt DeveIopmen .139.8 7.8
Rexam . . . . . . . . . . . .413.0 7.4
Ophir Energy . . . . . . .392.0 7.3
Rank Group . . . . . . . .138.4 6.5
Capita . . . . . . . . . . . . .688.5 6.5
Logica . . . . . . . . . . . . .86.7 6.5
Kenmare Resources . .58.2 -5.5
Vedanta Resources .1380.0 -5.0
Evraz . . . . . . . . . . . . .397.0 -3.8
CSR . . . . . . . . . . . . . .251.0 -3.8
Regus . . . . . . . . . . . . .112.3 -3.5
BarcIays . . . . . . . . . . .239.2 -3.5
Hargreaves Lansdow 465.0 -3.4
Domino's Pizza UK .460.0 -3.4
RoyaI Bank of Scot . . .27.3 -3.1
Home RetaiI Group . .105.7 -3.0
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
FINANCIAL SERVICES
FIXED LINE TELECOMS
FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. & EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM 50
NON LIFE INSURANCE REAL ESTATE INVEST. TRUSTS
http://corporate.webfg.com
mailto:
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AUTOMOBILES & PARTS
BANKS
CHEMICALS
BEVERAGES
GENERAL INDUSTRIALS
MOBILE TELECOMS
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
MINING
NONEQUITY INVESTM. COMM.
Tsy 5.000 12 . . . .100.16 -0.05 104.2 100.1
Tsy 5.250 12 . . . .101.40 -0.02 105.4 101.3
Tsy 9.000 12 . . . .103.80 -0.47 111.2 103.3
Tsy 4.500 13 . . . .104.25 -0.01 106.5 104.2
Tsy 2.500 13 . . . .282.82 -0.01 287.7 280.2
Tsy 8.000 13 . . . . .112.05 0.00 116.9 112.0
Tsy 5.000 14 . . . . .111.54 0.06 112.9 109.3
Tsy 8.000 15 . . . .127.55 0.13 129.2 123.8
Tsy 7.750 15 . . . .100.00 0.00 106.1 99.4
Tsy 4.750 15 . . . . .114.50 0.13 115.4 109.1
Tsy 4.000 16 . . . . .113.86 0.24 114.7 105.6
Tsy 2.500 16 . . . .341.42 0.29 344.2 314.5
Tsy 1.250 17 . . . . .115.36 0.34 116.6 107.6
Tsy 12.000 17 . . .120.64 0.00 128.6 119.4
Tsy 8.750 17 . . . .141.26 0.01 141.9 133.3
Tsy 5.000 18 . . . .121.80 0.37 122.5 110.6
Tsy 4.500 19 . . . . .119.91 0.51 120.7 106.5
Tsy 3.750 19 . . . . .114.72 0.53 115.6 100.7
Tsy 2.500 20 . . . .363.69 0.52 367.1 317.9
Tsy 4.750 20 . . . .122.09 0.52 123.5 107.7
Tsy 8.000 21 . . . .150.78 0.55 153.4 134.8
Tsy 4.000 22 . . . . .116.02 0.64 118.2 100.0
Tsy 1.875 22 . . . .126.06 0.66 129.1 113.0
Tsy 2.500 24 . . . .326.93 0.77 334.7 280.1
Tsy 5.000 25 . . . .127.29 0.80 130.6 108.5
Tsy 4.250 27 . . . . .118.32 0.91 122.7 99.1
Tsy 1.250 27 . . . .122.09 0.90 127.0 106.6
Tsy 6.000 28 . . . .142.71 0.91 148.0 120.7
Tsy 4.125 30 . . . .310.30 0.70 322.8 267.1
Tsy 4.750 30 . . . .124.59 0.85 130.5 104.3
Tsy 4.250 32 . . . . .117.08 0.90 123.1 97.5
Tsy 4.250 36 . . . . .117.11 0.92 123.9 96.8
Tsy 4.750 38 . . . .126.43 0.94 134.2 105.0
Tsy 4.500 42 . . . .122.83 0.96 130.8 101.3
% %
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CITYA.M. 23 FEBRUARY 2012 23
Wealth Management | ISAs
A
S MINISTER in the Foreign and
Commonwealth Office responsible for
Asia and Latin America, my brief
includes most of the worlds emerging
economies. China, Brazil, and India have had the
most column inches devoted to their meteoric
rise, however some of the smaller countries have
also made incredible leaps in the last few years.
South Korea, embracing capitalism and democ-
racy, has moved in a generation from poverty to
being the worlds twelfth largest economy.
An important part of my overseas travel has
been to promote Britain. But another part of
that process has been to draw the lessons we
need to learn.
In doing so, it is important to hold firm to cer-
tain key principles. First comes free trade, and
the outward-looking mentality that underpins
it. Second are the wider freedoms that support
free enterprise and free societies. And finally,
Britains unique selling points, which help give
us the chance to turn this revolution into our
opportunity.
The single biggest driver of the emerging pow-
ers revolution has been the embracing of free
market economics and the remarkable opening
up of world trade over recent decades. This is the
UKs greatest opportunity. I do not believe that
there is another country where the free trade
reflex is so hard-wired into the national con-
sciousness. True, there can also be a protection-
ist reflex, and the case for free trade is one
constituency MPs still have to keep making on
the doorstep.
But whether it is car workers in the northeast
or financial workers in the City of London, the
simple truth is that free trade and investment
are essential to our prosperity. And that will only
become even more emphatically the case as the
emerging powers grow richer.
My second guiding principle is the freedoms
and values that need to accompany globalisa-
tion. Freedom and prosperity are creating new
opportunities for ordinary people. Our approach
to the emerging powers is guided by the belief
that these values are not Western, but universal.
In this new order, Britain must harness our
third opportunity, certain unique selling points.
Britain remains a global power. Our institution-
al influence in international affairs is vast. Our
network of bilateral relations with every major
country in the world is sophisticated and effec-
tive. We are the home of some of the worlds
leading publications, academics and cultural
institutions.
Britain has the characteristics to prosper, but
these are not nearly enough. Britain needs to be
far more competitive in a fast-changing world.
We need to overhaul our thinking and our atti-
tudes. The alternative, even allowing for
Britains existing areas of advantage, is benign
decline.
Adapting to the new world order is a national
task, from which almost no part of our govern-
ment or public life should be exempted. To be
competitive in the world, we need change at
home.
It is unsustainable for the British government
to be borrowing, as we currently are, almost
400m every single day. Tackling this appalling
deficit should be the duty of all politicians in
Britain. We are already getting close to spending
1bn every single week just on the interest on
the debt. That is more than we spend on educa-
tion. More and more debt is a recipe for ruin and
a risk to our national security.
We cannot assume that Britain, or Europe as a
whole, has an automatic right to be the most
prosperous or influential continent. By the mid-
dle of the century Europe is forecast to have 5
per cent of the world's population and 10 per
cent of its economy richer than average, but
much less so than a generation ago. In terms of
growth, Europe is still moving fast in the wrong
direction, being outperformed and overtaken by
every other continent in the world.
We need to think how we can be more produc-
tive, not come up with more regulations which
make it harder to employ people and less worth-
while to work. We need to question our other big
assumptions, about what is affordable, and the
role of the state. It will be difficult to remain
globally competitive when the state is spending
45 per cent of GDP. It will be difficult to remain
globally competitive with higher marginal tax
rates than in comparable economies. It will be
difficult to remain globally competitive with a
rapidly declining percentage of the population
being of working age.
Britain remains a major force in the world,
economically, politically and culturally. But we
have no pre-ordained right to be wealthier, more
successful and more influential than other
countries. We earned that status in the past
through invention, adventure and enterprise,
and we need to earn it again for the future.
Without change we will decline. Far from being
the frightening option, change is actually the
safer long-term choice.
Jeremy Browne is a Liberal Democrat MP and minis-
ter of state for the Foreign and Commonwealth Office.
This is an edited version of an essay from The Next Ten
Years, to be published by Reform on 1 March.
24
The Forum
We need to overhaul our
thinking and attitudes. The
alternative is benign decline.
Emerging powers are giving
us a wake-up call: We must
earn our place in the world
cityam.com/forum
JEREMY BROWNE
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
25
Russia isnt part
of the group of
rising economies:
its too wealthy
Why it is time to
rename the Bric
nations the Bics
I
T HAS been clear for some time that glob-
al growth for the foreseeable future will
not be driven by Europe and the US, but
rather by the so-called Bric countries of
Brazil, Russia, India and China. This group of
countries, representing around a third of the
worlds population, now form a loose but
increasingly vocal economic alliance that is
challenging the old post-war order. To be a Bric
country is to be part of the future.
But many commentators see an anomaly.
How can Russia, with its ageing population
and its reliance on commodity exports, be
ranked alongside economic dynamos such as
China and Brazil?
Goldman Sachss Jim ONeill, who famously
coined the term Bric back in 2001, sees no such
contradiction. In his view, Russias large popu-
lation gives its economy the potential to grow
bigger than Germanys over the next 20 years.
And judging an economy based on its
reliance on commodity exports is a meaning-
less way of predicting future economic per-
formance compare, for instance, the relative
fortunes of Australia and Norway with Nigeria
and the Ukraine.
Meanwhile, other Bric countries like Brazil
depend to some extent on commodity exports.
And while these countries continue to grow
there will be plenty of demand for Russias
main exports of energy, metals and agricultur-
al produce for years to come.
Russia suffers from a major corruption prob-
lem, ranking 143 in Transparency
Internationals 2011 global Corruption
Perceptions Index. But its Bric confreres also
languish fairly low down this index, all scoring
less than 4 out of 10, where 10 is very clean.
However, critics of Russias membership of
the Brics club do have a point when we consid-
er the underlying structure of its economy.
Most obviously, Bric countries draw much of
their growth from large pools of labour, under-
pinned by young and growing populations.
Russia, by contrast, has an ageing population
that is shrinking overall, which makes it closer
to countries such as Italy and Ireland.
Second, the likes of China and India still
have a long way to go before they are fully
urbanised and industrialised. Russia complet-
ed this process 50 years ago and is rapidly
becoming a post-industrial economy. Its domi-
nant energy and metals sectors are undergo-
ing privatisation and modernisation, while its
banks are beginning to compete globally. The
development of Russias answer to Silicon
Valley near Moscow should see Russia compet-
ing in high tech industries such as IT, biomed-
ical sciences and energy-efficient technologies.
Russias agriculture sector is applying modern
technology and practices, allowing it to build
on this comparative advantage.
Finally, Russias relatively wealthy GDP per
capita of $17,000 (10,845) makes it the odd
one out in a group of countries that still suf-
fers from extremely high levels of poverty and
economic inequality.
Russia is further down the road to develop-
ment than other Bric countries. For investors,
perhaps more useful comparisons should be
drawn with countries like Poland, also well on
its way to becoming a developed market econ-
omy. That may not be as glamorous as being a
Bric, but it is perhaps a better place to be.
Alexey Moiseev is head of macroeconomic analysis
at VTB Capital.
Meaningless means
Steve Tatton suggests [The pay
agenda, yesterday] that coverage
of the executive pay debate should
be focused on facts rather than
personal agendas. We agree, and
Manifest and MM&K have focused
their commentary on why the
presentation of remuneration data
using means of percentage
changes is practically meaningless.
Significant changes in the UK's
regulatory environment need to be
based on well-presented analysis.
The distribution of executive pay in
the UK is not symmetrical; there is
a significant skew towards a few
directors at the top end of the
FTSE 100. Best practice is there-
fore to consider the median
because the mean average is very
sensitive to outliers, the abnormal-
ly low or high values. Presenting
data showing the mean average of
percentage changes is especially
misguided. Percentage decreases
are limited to 100 per cent; per-
centage increases are unlimited.
The median is not just less sensi-
tive to data extremes, it is also
less prone to hyping. Which is
why both the UK's Office for
National Statistics and the US
Census Bureau use the median
to assess income data.
I will leave you with this
thought: 10 middle-class, mid-
dle-earning folks are sitting in a
bar. Warren Buffett walks in,
and suddenly everyone in the bar
is a multi-millionaire, on average.
Sarah Wilson, chief executive,
Manifest
RAPID RESPONSES
ALEXEY MOISEEV
The Forum
D
ESPITE the insis-
tence from one of
his advisers that
Michigan is not a
must-win, the state is a
crucial test of Mitt
Romneys candidacy. The
media have already pre-
pared the stinging head-
lines in the event Rick Santorum springs the surprise of
the contest and wins in the Great Lakes. Romney, how-
ever, still has time to write headlines of his own.
Santorums 15-point lead in Michigan has all but
evaporated, with most polls showing a statistical dead
heat. In addition, for the first time in the campaign
Santorum has been distracted and pushed off mes-
sage. When he should be talking about eradicating
corporation tax for American manufacturing,
Santorum is fighting accusations of religious bigotry .
Suggesting that Barack Obamas Christian denomina-
tion is based on some phony theology will do that.
Although neither is expected to seriously challenge
the frontrunners in Michigan and Arizona on Tuesday,
Newt Gingrich and Ron Paul could play decisive roles
in swinging both states for Romney. Gingrich has
largely avoided any direct attacks against Santorum,
but another $10m cheque from Sheldon Adelson may
signal a shift. Adelsons motivation for doing so may be
behind his opposition to Santorum rather than his
desire to propel the former speaker to the White
House. Adelson is not entirely averse to a Romney can-
didacy either. The messages emanating from the
Gingrich campaign in the coming days will be quite
telling.
While Paul has tacitly acknowledged that he could
do business with Romney, he has been entirely forth-
coming about his disdain for Santorum. When its mat-
tered, Paul has torn into Gingrich and Santorums che-
quered histories, aiding Romney in the process. His
campaign is running ads on the conservative Fox News
channel accusing Santorum of doing everything from
embracing big government to bankrolling dictators. If
Paul believes that social conservatism is a losing posi-
tion hes clearly determined to make it even more so.
In Arizona, Romney has maintained a slender lead.
The Copper State is actually more important in terms
of delegates, with the winner taking all 29, whereas
Michigans 30 delegates are divided proportionally.
Romney is also likely to benefit from a high early
turnout, with approximately 200,000 ballots already
having been cast. However, Romney still has a great
deal of work to do. The conservative National Review
warned that Romney is missing a golden opportunity
to go big and offer a policy initiative to substantially
differentiate his candidacy from the field. On Friday
hes giving a widely publicised speech at Ford Field
before the Detroit Economic Club. The media and
thousands of undecided voters will demand more
than a campaign stump speech.
A disappointing Tuesday for Romney will increase
calls for a new candidate like former Florida governor
Jeb Bush to enter the race. Winning Michigan and
Arizona will create momentum and set the ideal stage
for Super Tuesday on 6 March. At the time of writing,
the candidates had yet to lock horns in Mesa, Arizona
for their final debate before Tuesdays primaries. The
debates in South Carolina and Florida proved decisive
in picking the eventual winner. In the latter, Romney
significantly raised his game when it mattered.
Wednesday night should be no different. As the candi-
date himself points out in his current commercial,
Michigan has been my home, and this is personal.
Ewan Watt is a Washington DC-based consultant.
You can follow him on @ewancwatt
The stakes are high in
Romneys home state
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
US ELECTIONS
BY EWAN WATT
26
The new networking sky is flled with all kinds of clouds. Big ones.
Small ones. Public. Private. Even hybrid. Your people, partners,
citizens and customers must move swiftly and securely between
many clouds. Not just one. Thats why Cisco Data Center and
Cloud services ensure the same agility, efciency and security as
the rest of the Cisco architecture. So your data, your relationships and
your business can remain protected at every level. And you can focus
on taking your business to new heights through innovative growth.
Learn how businesses in every industry are entrusting their data with
Cisco Data Center and Cloud services in the physical workplace,
and the virtual one, at www.cisco.co.uk/ucs
In the past year,
67% more
companies
moved to cloud.
(But not just to one.)
Benefits for all
with a bring
your own
device policy
As employees demand the familiarity of
their own computing tools, businesses need
to keep up to speed, writes Craig Drake
Business Features| Technology & Finance
A
S THE proliferation of smart-
phones and consumer mobile
devices increases at an expo-
nential rate, they are rapidly
changing the way that companies do
business. Apple are reportedly on
target to sell 8m iPads this quarter
and have already sold 183m iPhones
when the iPhone 4S was launched,
1m were sold.
INCREASING DEMANDS
As certain devices attain an almost
cult-like following, employees are
more and more likely to bring them
into the workplace. The advantages
of employees using their own
devices in the workplace are evident.
There was a time when the technolo-
gy available to the average consumer
was much below the standard of
that found on their desk in the
office, but that has now been
reversed. Gartner expects that users
will have as many as seven personal
computing devices by 2015 which
will be swapped and upgraded more
often than a company-supplied lap-
top. Laptops from a business IT
department typically get refreshed
on a three year cycle, whereas users
will upgrade to a new version of a
phone or tablet as often as once a
year.
The cost-cutting benefits of this
for companies is obvious whereas
in the past they would have to con-
stantly upgrade and maintain com-
puters and electronic devices for
staff, now the onus is shifting onto
employees.
Staff at all levels are requesting,
even expecting, the combination of
rich user-experience from their per-
sonal smart-phones or other mobile
devices, with access to company sys-
tems. It means that the convergence
of consumerism and technology is
fuelling a corporate IT phenome-
non, says Martin Lunt, principal
adviser in KPMGs CIO advisory prac-
tice. The reality is that many of us
now rely on email on-the-go, being
able to check our calendar between
meetings, and even social media
contact and monitoring: proof that
smart devices have become invalu-
able as tools to improve our effective-
ness.
BENEFITS OF FAMILIARITY
But this shift does throw up ques-
tions for both employer and employ-
ee. Firstly, when push comes to
shove, employees are paying out of
their own pocket for something that
they once received for free. At first
glance, the benefits may seem to
focus on leveraging the personal
aspect of these devices, but this
ignores the softer benefits, says
Lunt. For one thing, individuals
dont mind exploiting the personal
investment already made in phones,
tablets and, where applicable, lap-
tops.
LISTENING IN
An additional river to cross when it
comes to the use of mobile devices in
the workplace is that of regulatory
compliance. Even if employers are
willing to allow employees to con-
nect their personal devices to compa-
ny networks and employees are
prepared to use devices earned with
their own hard-earned cash in the
workplace, there are still compliance
issues to address. For some sectors,
such as the financial services indus-
try, the consumerisation of IT is a
minefield with the public sector and
regulated industries having to tread
EMPLOYEES DEVICES
CAN WORK FOR YOU
BUT PREPARE AHEAD
TIM SKINNER
DIRECTOR UK ENTERPRISE
CISCO
HOW DOES THE REQUIREMENT FOR NETWORK
SECURITY DIFFER IN A BRING YOUR OWN DEVICE
WORKPLACE, THAN IN A WORKPLACE WITH FIXED
DEVICES?
In a workplace with fixed devices, security was simpler. You
could secure entry to the corporate network via firewalls
and intrusion protection. With an increasingly mobile workforce
using a variety of devices, the network now needs to know who
the user is, what device the user is accessing the network from,
what application they are trying to access and where they are.
A company may, for example, wish to allow an employee to
access all applications from their iPad while in an office but
block access to some applications when that same user is
accessing the same network on the same device but from a
coffee shop. This context-aware security is a fundamental
requirement of truly securing a bring your own device (BYOD)
workplace.
WHAT ARE THE TOP 3 THINGS A COMPANY SHOULD DO
TO ENABLE A BRING YOUR OWN DEVICE POLICY?
Firstly, provide a means of delivering the context-aware
security capabilities I just described, so that access policies
can be set dependent on device, user and location. Secondly, the
whole point of these mobile devices is that you can be mobile
therefore, ensure every personal device is equipped with a
software client that ensures continuous, secure access to the
corporate network as a user moves between wireless and 3G
networks. And finally, to avoid employee dissatisfaction and loss
of productivity, build a business-critical wireless network so
that these devices stay connected as quickly and reliably as
laptops previously would.
HOW DO YOU SEE THE BRING YOUR OWN DEVICE
PHENOMENON PROGRESSING?
The consumerisation of devices is clearly happening faster
than predicted and a need to embrace it as a standalone
trend is obvious. But other trends in the marketplace such as
cloud, video and virtual desktop will come together with
BYOD, bringing more complexity to the situation. Companies
who embrace BYOD now will be better
prepared for those. For example, Gartner
predict 90 per cent of the worlds
internet traffic will be video by 2015
adopting personal devices now will
ensure a company is better able to cope
with those devices when they are being
used for video collaboration in the
coming years. Similarly, securing BYOD
devices now will better prepare a
company for deploying those same
devices in a virtual desktop environment.
Allowing employees
to make use of the
latest technology
gives you the edge
Picture: GETTY
Q
Q
Q
A
A
A
27
2
0
1
1

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is
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o

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m
s
,
In
c
.

A
ll
r
ig
h
t
s

r
e
s
e
r
v
e
d
.

87%
of employees use personal
computing devices in the
workplace
40%
of employers allow the use
of any device that
employees choose
30%
have an approved device
policy in place
62%
of employers believe the
policy improves employee
satisfaction
42%
of employers believe the
policy improves customer
service
People, information and devices
SOURCE: AVANADE CONSUMERISATION OF IT SURVEY
very carefully, says Harry
McDermott, chief executive of ICT
consultancy Hudson & Yorke. As of
14 December 2011, all relevant
mobile communications in regulat-
ed financial organisations (including
voice, SMS, IM and any other applica-
tion that can be used to receive
client orders, negotiate or agree or
arrange transactions) have had to be
recorded and retained. During the
retention period the records need to
be held for reference and may be
required for audit or dispute purpos-
es. This requirement extends to any
devices being used in the workplace,
meaning that many employees in rel-
evant sectors have had to hand over
certain elements of control over
their devices to allow for remote
management, a remote wipe facility
and segmentation of work and per-
sonal information. While technolo-
gy solutions do exist to enable seg-
mentation of work and personal
communication, the challenge for
many is to find a consistent record-
ing platform that addresses all
requirements, says McDermott.
The privacy protection aspect of the
FSA regulation is a big issue for com-
panies and employees alike.
SEAMLESS TRANSITION
The response to the challenges of
regulatory compliance, company
demands and employee expectations
is a difficulty, but not insurmount-
able. We have put into place an IT
architecture that will work with
most devices almost regardless of
the operating system or the type of
device, says Ian Foddering, chief
technical officer for Cisco. The aim
is to provide the same level of service
regardless.
S
o
u
r
c
e
:
C
I
S
C
O
The Share Centre Limited is a member of the London Stock Exchange and is authorised and regulated by the Financial
Services Authority under reference 146768. The Share Centre, PO Box 2000, Aylesbury, Bucks, HP21 8ZB.
The Share Centre Limited is a member of the London Stock Exchange and is authorised and regulated by the Financial
Services Authority under reference 146768. The Share Centre, PO Box 2000, Aylesbury, Bucks, HP21 8ZB.
Our new Self-select Stocks & Shares ISA, with a fixed fee
Your quarterly admin fee is only 12.50 + VAT with our new ISA, regardless of how
much you invest, and no matter how much your capital grows.
Youre free to choose from the full range of shares, bonds and other ISA eligible
investments. And well even cover the cost of transferring your ISA from another
provider, up to a maximum of 300 (conditions apply).
Tax allowances will depend on your individual circumstances, and ISA benefits
could change in the future. The value of investments and the income from them
can go down as well as up, and you may not get back your original investment.
Find out more on 0845 61 85 261 or at www.share.com/sharesisa
fix
your SA

fee
I
T IS surprising how many City folk
versed, as they often are, in the
intricacies of structuring
complex financial prod-
ucts dont know the basics of
individual savings accounts (Isas).
It isnt uncommon to need to
explain to bankers that the Isa
allowance can be taken every year;
that it isnt a product in itself, but a
wrapper to protect your saving
from taxation; and that this
money remains protected
from tax indefinitely.
An Isa is in
essence a tax
break on income
earned on invest-
ments without
which basic-rate,
higher-rate and addi-
tional rate taxpayers
are pilfered of much of
any earnings on their
investments.
As long as you are a UK
resident or a Crown employee (such
as a diplomat or member of the armed
forces, who is working overseas but paid by the
government or the husband, wife or civil part-
ner of a Crown employee) and 16 or over for a
cash Isa and 18 or over for a stocks and shares Isa
you qualify.
In the current tax year which runs from 6
April 2011 to 5 April 2012 the annual Isa
allowance is 10,680 (5,340 of which can used
for a cash Isa). Although this might not sound
like a fortune, a plethora of Isa millionaires are
dotted across the country to prove the benefits
of sustained, well-managed, diversified com-
pounding investments. There are even strong
arguments that the flexibility provided by Isas
trumps the benefits of pensions (particularly
employee-only contributed pensions) for those
with the discipline to leave their investments
alone to fructify.
Although Isas need to be segmented from the
temptations of holidays and new cars to really
benefit, they cannot be ignored. Many cash Isas
lie dormant, earning pitiful interest, ravaged by
inflation. Equally, too many shares Isas are in
expensive funds that are underperforming the
index its manager is failing to track.
There are many myths to bust. Below, experts
set the record straight on three.
SWITCHING IS DIFFICULT
ANDREW HAGGER
MONEYNET.CO.UK
At the start of every new tax year theres a huge focus on
finding the best home for your latest tax free savings
allowance.
A best buy account will help maximise your returns on your
current year cash Isa, but its even more important to keep a
close eye on those Isa balances youve accrued in previous tax
years, as the rates on these accounts may no longer be competitive.
If you want to move an old Isa account to somewhere paying a better rate, simply
approach the new provider and ask them to arrange for your existing account(s) to
be transferred.
Although the Office for Fair Trading has ruled that Isa transfers should take no
longer than 15 working days, in most instances the switch takes place much sooner.
Its worth noting that Halifax and Nationwide Building Society will pay interest from
the day your signed application is received, rather than the date the balance arrives.
ITS ALL TOO COMPLICATED
JASON WITCOMBE
EVOLVE
With literally thousands of investment funds to choose
from it is understandable that many would-be investors fall
at the first hurdle and never get started.
I would encourage new investors to set up a monthly
direct debit into their Isa rather than doing this as a lump
sum. This puts the investment process onto auto-pilot
and should avoid the worry of putting in a lump sum each year and trying to
pick a good time to invest.
I would also advise investors to keep the portfolio simple. You can get a very
low-cost, well diversified equity and bond portfolio with just three funds to start
with a UK stock market tracker, an international tracker and a fixed interest
fund. If you commit to rebalancing this every now and again, by buying more of
what has fallen and taking profits on funds that have gone up, youll be on track
to building a decent portfolio.
IT ISNT WORTH IT
PAUL KENNEDY
FIDELITY FUNDSNETWORK
The government adds to your savings in a way it would not
do if your investment were outside an Isa and subject to
tax. How much the government effectively adds and its
worth will depend on the type of investment and what
rates of tax you would have to pay if your investment was
not in an Isa. The table below shows you for every 100
net return that you would receive outside an Isa how much
the taxman adds to the Isa based on current tax rates.
1. The maximum would apply where the sole return was capital growth and sub-
ject to capital gains tax at 18 per cent. Some basic rate taxpayers might have to
pay some capital gains tax at 28 per cent, which would increase the maximum to
up to 39. No additional amount is received for any dividend payments.
2. The maximum would apply where the sole return was capital growth and sub-
ject to capital gains tax at 28 per cent. The additional amount for dividend pay-
ments would be 33.
3. The maximum would apply where the sole return was dividends and subject to
income tax at 42.5 per cent on the gross dividend. The additional amount for cap-
ital growth subject to capital gains tax at 28 per cent is 39.
For every 100 that you would
receive outside an Isa the taxman
adds to the Isa
Investments paying interest such
as bonds
Investment funds that invest in
stock & shares and pay dividends
and/or grow in capital value
Basic Rate
Taxpayer
An Isa adds 25
An Isa adds
between
0 to 22 [1.]
High Rate
Taxpayer
An Isa adds 67
An Isa adds
between
0 to 39 [2.]
50 per cent
Taxpayer
An Isa adds 100
An Isa adds
between
0 to 56 [3.]
Wealth Management | Isas
Three Isa myths that must go bust
An Isa is a tax breakwhich all cash and equities savers should make use of, writes Philip Salter
Theres nothing like being able to judge for yourself. For us, we wont
add a company to our portfolios without first holding a personal
interview with its management.
Established in 1907, Murray International Trust PLC is a conventional
investment trust that aims to generate income from a large, diversified
global portfolio, and is available through our ISA or Share Plan. We
only ever invest in companies that our regional investment teams have
personally selected and approved.
You can invest in this trust from 100 per month or 1,000 lump sum.
We offer daily dealings for lump sum investments.
Do remember that the value of shares and the income from them can
go down as well as up. You may not get back the amount invested. No
recommendation is made, positive or otherwise, regarding the ISA and
Share Plan.
The value of tax benefits depends on individual circumstances and the
favourable tax treatment for ISAs may not be maintained.
If you have any doubts about the suitability of any investment for
your needs, please consult an independent financial adviser.
Request a brochure: 0500 00 40 00
www.invtrusts.co.uk
Issued by Aberdeen Asset Managers Limited, 10 Queens Terrace, Aberdeen AB10 1YG,
which is authorised and regulated by the Financial Services Authority in the UK. Telephone calls may be recorded. Please quote MINT CA 05
Murray International Trust
Stocks and Shares ISA and Share Plan
Our fund managers most useful tool
No. 7: A travel clock
Over the past year, we personally interviewed the management of over
3,000 companies worldwide.
Lines are open Monday to Friday 7.45am 7pm. Calls may be recorded. Selftrade is a trading name of Talos Securities Limited and registered trade
mark of Boursorama. Talos Securities Limited is incorporated in England and Wales (Registration No. 4196325, Registered Address: Boatmans House,
2 Selsdon Way, London E14 9LA), is authorised and regulated by the Financial Services Authority (FSA Register No. 208271), is a member of the
London Stock Exchange and PLUS Markets plc and is an HM Revenue & Customs Approved Plan Manager.
W
a
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re
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A
in
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Invest in a self-select Shares ISA today and win up to 10,680
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A Shares ISA is a tax-ecient wrapper designed for longer-term
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any tax benets depend on individual circumstances. Selftrade
does not provide investment advice.
W
in back your subscription up to 10,680
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or call 0845 0700 720
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Wealth Management | Personal Finance
BESTINVEST
ADRIAN LOWCOCK
Bestinvest throws a spaniel in the works revealing once again the managers chasing their own tail
I
NVESTING in stock markets has
been challenging for investors,
with so many ways to access var-
ious investments. Fund groups
and brokers are also continuously
promoting new fund launches, pro-
viding a wide array of choice, but
this often means that exiting
investors are then ignored.
Bestinvest launched Spot the Dog
to openly expose poor fund manage-
ment, as there is a huge amount of
money which just sits dormant in
poor performing funds. In our most
recent spring 2012 report of Spot the
Dog there is 9.24bn invested in dog
funds, costing investors 133m a
year in fees. Most of the time the
consistently poor performance can-
not be justified by the managers.
Our advice to investors is to act now,
before it is too late.
The list of fund groups which
appear in the report are well-known
names. Topping the most recent list
is Scottish Widows; who often reap-
pear as repeat offenders, moving to
top of the dogs from fifth place last
year. Second in the list is M&G invest-
ments, another familiar name.
However, it only has one large fund
in the dog house, M&G Dividend,
which has 1.192bn of investors
money, but only constitutes 6 per
cent of its assets under management
as defined by Bestinvest. The five top
of the dogs are completed by
Schroders, Standard Life and St
James.
The list of managers who feature
in Spot the Dog range from those
who have consistently disappointed,
such as Jayesh Manek who manages
the Manek Growth fund which still
has 26m invested to former star
managers such as Andy Brough of
Schroder UK Mid Cap. This report
makes it his fifth appearance, but
the good news is that there is evi-
dence to show that investors have
since taken heed of previous Spot
the Dog reports. In the current cli-
Terrier(ble)
returns hound
many funds
mate investment returns have
proved challenging, but our advice
to investors is that they shouldnt
restrict themselves by tolerating con-
sistent under performance.
Appearing in Spot the Dog has a
major impact on fund groups; serv-
ing as a wake up call for lazy man-
agers to get dormant funds moving
into gear again. Mark Lyttelton, a
dog fund manager from last year,
this week stepped down from man-
aging the Blackrock UK fund. This is
especially good news for investors
and a very responsible action from
Blackrock and Mark Lyttelton him-
self. We hope performance improves
on his remaining two funds
(Blackrock UK Dynamic and
Blackrock UK Absolute Alpha) and
he returns to his previous good
form.
Avoiding the dogs is only part of
the story. If you cannot pick the star
managers then there is little point
paying for active management. So
with Spot the Dog we compare per-
formance of the dog funds against
our best of breed funds. When we
consider how they differ, we can
refer to the UK All Companies sector.
Our top pick, AXA Framlington UK
Select Opportunities, has returned
23.93 per cent over five years, while
Legal and General Equity Trust, a
dog fund, lost 10.25 per cent over the
same period, a difference of over 34
per cent. The story is repeated across
different sectors in Europe Jupiter
European beat Newton Continental
by 39.9 per cent over five years.
Investors must start to sit up and
take notice of the dog funds and
should take a more proactive
approach to checking up on their
fund managers individual perform-
ance. It pays to review your invest-
ments and find out on whether your
investments are dogged with poor
management.
His bite is worse
than his bark
Picture: GETTY
%return
AXA Framlington UK
select opportunities
FTSE All-Share TR
L&G equity trust E (dog)
01/12/06 01/03/08 01/06/09 01/12/11 01/09/10
140
20
0
60
40
100
80
120
ANALYSIS l UK dog versus best of
breed fund
Group Number of Dogs Value m Previous Spot the Dog ranking
Scottish Widows 4 2,281.95 5
M&G 1 1,192.19 6
Schroders 1 1,173.11 4
Standard Life 1 730.26 11
St James's Place 1 477.67 10
Canlife 2 461.6 13
AXA 2 379.65 N/A
GAM 1 342.15 15
Legal & General 3 331.22 9
F&C Asset Management 1 297.58 N/A
THE BIG BAD DOGS
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Fill the grid so that each block
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KAKURO
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KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
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SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
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from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Natural spring which
gives out steam (6)
6 No particular
person (6)
7 Retail establishment
serving light
refreshments (4)
9 Land or property
that is let for a set
period of time (9)
13 Musical composition
that evokes
rural life (5)
15 Small hotel (3)
16 Darkest part of
a shadow (5)
20 Positioned behind
or at the back (9)
23 Walk through
water (4)
24 Shelters from light (6)
25 Steered into a
resting position (6)
DOWN
1 Well-known Italian
fashion label (5)
2 Alloy of iron and carbon (5)
3 Tatters (4)
4 Ms Chanel, designer (4)
5 Feast upon (4)
8 Two-winged insect (3)
10 In existence (5)
11 Boredom (5)
12 Edward __, writer of
nonsense verse (4)
14 Lower part of an
interior wall (4)
17 Garden tool for cutting
grass on lawns (5)
18 Womans garment (3)
19 In the lead (5)
20 Authorisation to go
somewhere (4)
21 Blow delivered with
an open hand (4)
22 Coarse le with sharp
pointed projections (4)
T
D
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E
M T
E
N
I

4
B I S E C T S H O W
A I O E E
N T U R N T A B L E
A N I T W Y
L A N C E R E A C H
S A Z U R E H
R S V P G A D G E T
E T G H E R
A R T I C H O K E U
R O U N C
K E E N S T A T U E
8 4 9 1 1 8 2
6 3 4 2 1 7 9 5
9 7 9 5 8 6 7 3
7 2 5 2 3 4 1
5 1 3 7 9 8
6 9 8 2 7 4 1
2 6 1 5 2 6
5 8 7 9 9 4 7
4 9 6 7 3 8 5 9
1 6 4 1 5 2 3 4
2 4 1 9 1 6 8
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
DEXTEROUS
Lifestyle | TV&Games
Lifestyle | Technology
entrants from 11 events compete for the
top prize.
Last year, postman Dan Summers was
victorious. He now works for the Royal
Mail threat and vulnerability team.
Cyber Security Challenge founder and
director Judy Baker says he is a great
example of what the event can achieve.
Dans story is incredible, really. The
events aim to plug the gap in the number
of security professionals in the UK, to find
new talent rather than to reward people
already in the industry. Dan certainly
achieved that. The calibre of entrants is
getting even stronger so I expect the event
to go from strength to strength.
With cyber attack threat levels showing
no sign of receding, well need all the help
we can get.
H
acking group Anonymous rose
from obscurity last year to become
a household name. Earlier this
month it intercepted a phone call
between the FBI and UK police discussing,
ironically, the fight against cyber crime.
The audacious hack was the latest in a
string of high profile attacks targeting
governments, police forces and corpora-
tions across the world.
Along with LulzSec who famously
breached Sonys security last year it is
among the best known groups of hackers
in an increasingly crowded field. Security
professionals say the UK is woefully unpre-
pared to face the spiralling threat to
online security.
The Cyber Security Challenge was set up
to help redress the balance. Last month
geeks of all shapes and sizes were invited
to the Royal Mint building to test their
skills in a controlled environment.
Entrants were pitted against each other to
be crowned cyber security champion, the
aim being to encourage young talent to
join the security industry and to help
steer them away from the dark side.
The disparate group competing in the
first semi-final would have made prize
pickings for a Louis Theroux documen-
tary, ranging from your stereotypical light-
deprived teenager to eccentric
40-somethings with interesting tastes in
facial hair. I chatted to Guy Plunkett, a
(sadly very normal) IT professional who
had entered last years tournament. He
wasnt there in search of a job he simply
wanted to test his skills against the best in
the country. He was modest about his
chances of progressing, saying security
wasnt really his field.
Before the pros kicked off I had a chance
to test my cyber security skills in a warm-
up challenge. I was teamed with Duncan
Alderson, a threat and vulnerability man-
ager at PwC (a major sponsor of the event).
His job is to test the IT security of com-
panies by simulating attacks from cyber
criminals. Sometimes this is done remote-
ly but, on occasions, it involves visiting
premises and blagging his way past the
reception staff in order to physically jack
into the IT system.
Our challenge was to compete against
other teams to take control of vulnerable
systems and crucially to secure these so
another team cant then steal them back.
Essentially it was a big game of virtual cap-
ture the flag and one in which I was
comprehensively beaten.
It takes a certain type of very method-
ical thinking to do this kind of work,
Alderson consoled me. Its not so much
about having one great idea as going
through a very long checklist of possibili-
ties. From a security point of view this is
vital if you miss one thing off your
checklist you could have overlooked a
vulnerability.
Later that afternoon the competition
proper took place. Guy finished second
and will go through to the final in Bristol
next month, which will see the finest
The Cyber Security
Challenge hopes to
discover the UKs
online saviours,
says Steve Dinneen
How to find the next crop
of cyber security experts
T
antalus made a pretty bad mistake: he
pissed off Zeus. To make amends, he
chopped up his son Pelops, boiled him in a
pot and served him as a sacrificial aperitif.
Now, as you might have predicted, this only made
things worse and Zeus, not the most forgiving of
gods at the best of times, sentenced Tantalus, for
all eternity, to a cruel and unusual punishment. He
was made to stand knee deep in water amid
trees bearing delicious looking, low-hanging
fruit except every time he reached for the fruit
it would retreat from his grasp and every time he
bent to drink, the water would drain below him.
So it goes. You dont mess with Zeus.
Playing Catherine feels similar. You can see
the makings of a groundbreaking game but the
joy of playing it remains just out of reach. The
Japanese creation follows protagonist Vincent,
whose relationship with his girlfriend Katherine
is getting a bit more serious than hed like. So, he
goes out, gets drunk and wakes up next to a
young hotty called Catherine. This incident and
his subsequent flirtations and encounters coin-
cide with the start of a series of horrendous
Freudian nightmares in which he is chased by
giant babies and fanged buttocks. This is where
the game comes in you have to solve block
puzzles to escape from the nightmares. The
problem is, while the puzzles are addictive, they
look antiquated by modern standards more
like something youd expect to find on a smart-
phone than a console. The rest of the adventure
is dictated by a series of not-quite-interactive-
enough cut scenes. You can wander around your
local bar and chat to your mates but it never
really feels like you have much of an impact on
the action, despite the inclusion of a good/evil
gauge that changes depending on your actions.
But somehow the whole is greater than the
sum of its parts. Catherine focuses on a subject
most people who play games can relate to (the
average age of gamers in the UK is 37 and the
average age of people buying them 41, accord-
ing to the Entertainment Software Association).
Relationships are a dominant theme in almost
every other form of popular culture but games
have probably wisely shied away from look-
ing at them too closely.
It might not be consistently entertaining but
Catherine is tantalisingly close to being some-
thing pretty special and its different enough to
warrant a look.
Catherine is
tantalisingly
close to being
a great game
MOBILE WORLD CONGRESS
WHAT TO EXPECT FROM THE WORLDS BIGGEST TELCO SHOW
NOKIA TO UNVEIL CHEAPER LUMIA
Nokia is poised to unveil a new, cheaper
smartphone using Microsofts Windows
Phone software at the Mobile World
Congress event in Barcelona next week. The
struggling Finnish giant wants to target a
wider market for its new range of smart-
phones, with its flagship Lumia 800 failing to
make the desired impact at the high end of
the market. Nokia last year dumped its own
smartphone software platforms in favour of
Microsoft's Windows Phone.
HTC TO BEGIN ITS FIGHTBACK
HTC is expected to roll out four new handsets
models at the Barcelona showcase event,
including an ultra-slim device, currently code-
named the HTC Ville, and one that uses
advanced quad-core chips. Other reported
models include a high-end design codenamed
the Edge that uses a quad-core CPU, boost-
ing processing speeds, as well as a couple of
mid-range smartphones. HTC is struggling to
regain the momentum it has seen in recent
years after a poor spell.
LG BACKS 3D AGAIN
LG is sticking to its 3D guns at Mobile World
Congress, with the release of the LG Optimus
3D Max, an upgrade of the worlds first glass-
es-free 3D handset. The screen will be
improved and it will feature NFC contactless
technology a major theme for this years
event. Its predecessor is an impressive piece
of technology, if not a very good phone. The
jury is out on whether there will be any
demand for it but LG may be wise to corner
the market for mobile 3D early.
The Mobile World
Congress event
will start in
Barcelona next
week. City A.M.
will be on location
with all the latest
news and views.
A contestant tak-
ing part in the
Cyber Security
Challenge semi-
final last month
GEEK SPEAK
@steve_dinneen
Sport
34
ENGLAND Twenty20 captain Stuart
Broad insists his authority would not
be undermined were he to hand one-
day skipper Alastair Cook his first cap
in the shortest format of the game
since November 2009 today.
Cook, who presided over a surpris-
ing 4-0 whitewash over Pakistan in
the ODI series, has been added to the
Twenty20 squad as cover for the
injured Ravi Bopara.
England play the first of three
Twenty20 internationals against
Pakistan in Dubai today and Broad
would have no concerns at throwing
Cook into the mix.
Straussy [Test captain Andrew
Strauss], Cooky and I work pretty
closely on all formats of the game, he
said. Just because Straussy doesnt
play in the ODI format doesnt mean
he has no say or opinion on it.
Its the same for Cooky in the
Twenty20. The three of us work very
closely with [coach] Andy Flower, and
that will continue. Weve worked
closely as three captains, as we have
done for nearly a year now, and that
doesnt change overnight. MANCHESTER CITY manager Roberto
Mancini is ready to integrate Carlos
Tevez back into his first team squad,
but the Argentina striker faces an
uphill struggle to win back his place
on the evidence of last nights crush-
ing Europa League victory over Porto.
The Premier League leaders
stormed into the last 16 of the compe-
tition after dispatching the holders in
ruthless fashion. Sergio Aguero
opened the scoring after just 19 sec-
onds and second half goals from Edin
Dzeko, David Silva and David Pizarro,
his first for the club, ensured a com-
fortable passage into the next round.
City already boast a frightening
array of attacking options but their
firepower is set to be enhanced by the
presence of the former Manchester
United star who has spent the last
five months in self-imposed exile.
Tevez apologised to his employers
for the first time on Tuesday for his
conduct since he refused to warm up
during Citys Champions League
defeat in Munich back in September
and also withdrew his appeal against
a fine of six weeks wages.
One week after Munich I called
him to my house and said, Carlos,
apologise to everyone and its fin-
ished, said Mancini.
I have no problem. I think he
needs two to three weeks to train,
then some games.
Mancini fielded a surprisingly
strong line-up for the visit of the
Portuguese champions and indicated
he would continue to do so as the
competition progresses.
The Italian said: We want to get to
the final. It will be difficult but for
this reason I will play the best team,
although we can make some changes
every game.
ENGLAND interim manager Stuart
Pearce will today name his first sen-
ior squad ahead of next weeks
friendly against Holland at Wembley.
The Under-21 boss has avoided hav-
ing to handle one potential hot pota-
to after John Terry, stripped of the
armband last month, was ruled out
for two months on Tuesday with a
knee injury that requires surgery.
Pearce must decide whether to
recall Rio Ferdinand, omitted from
the last squad by Fabio Capello, who
resigned earlier this month over the
Terry affair, while other senior stars
Steven Gerrard and Frank Lampard
will be sweating on their inclusion.
Pearce is expected to promote the
likes of Manchester Uniteds Tom
Cleverley, recently returned from
injury, and Arsenals Alex Oxlade-
Chamberlain from his Under-21
squad.
Rampant City to welcome
Tevez back into the fold
Pearce ponders
options ahead
of Holland test
Broad happy to count on Cook
BRITAIN celebrated its first medal suc-
cess at the Olympic Aquatics Centre
last night after Sarah Barrow and
Tonia Couch took bronze in the
10metre synchronised platform.
The pair scored 83.52 with their
final dive a back 2.5 somersaults, 1.5
twists to pip the Australian duo of
Alex Croak and Melissa Wu and create
history by becoming Britains first
ever World Cup medallists.
Chinas pair of Wang Hao and Chen
Ruolin claimed the gold, while
Meaghan Benfeito and Roseline Filion
of Canada took silver. Earlier in the
day 17-year-old Brit Jack Laugher,
tipped as an Olympic medal con-
tender in the summer, recorded a life-
time best as he qualified for the final
of the 3metre springboard.
OLYMPICS
Couch and Barrow seal bronze

BY JAMES GOLDMAN
FOOTBALL
4
0
MANCHESTER CITY
PORTO
Blues stuck
in a crisis,
admits Cech
Chelsea keeper says players to blame for Napoli
defeat that threatens manager Villas-Boas
CHELSEA goalkeeper Petr Cech
admits the club is in the midst of a
crisis and says silly mistakes were
to blame for the defeat to Napoli
that has nudged manager Andre
Villas-Boas ever closer to the sack.
Tuesdays 3-1 reverse in Italy
leaves the Blues Champions
League hopes hanging by
a thread and contin-
ues a dire run of
form that has led
to widespread
calls for Villas-
Boas to be fired.
Chelsea have
failed to win any
of their last five
games in all compe-
titions and have
dropped out of the
Premier Leagues top four, hav-
ing taken just three points from a
possible 12.
Compounding the disarray are
disputes between Villas-Boas and
some players, with the manager
admitting some do not back his
plans and the likes of Frank
Lampard, Ashley Cole and Michael
Essien omitted at Napoli.
We can see the crisis is still
ongoing, said Cech (inset).
Unfortunately, our poor run con-
tinues and the result from Naples
obviously didnt help. It ended up
exactly the way we didnt want it
to. But everyone who was on the
pitch is to blame. We make silly
mistakes and we pay for it.
Villas-Boas remains adamant he
is staying at Chelsea for the
remaining two years of his
contract, having swept
into Stamford Bridge last
summer on the crest of
a treble success at
Porto. Failing managers
do not stay at the club
long, but the 34-year-old
rejected suggestions he
could walk into another
top job, replacing former
Blues boss Claudio Ranieri at
Inter Milan, if he were dismissed.
I have the utmost respect for the
work of Ranieri, he said. I think
well both continue to work with
our current team, to believe in our
work and try to get results. Market
rumours are part of football, but I
want to build Chelseas future and
Im working on that.
BY FRANK DALLERES
FOOTBALL
The debate: Should

Chelsea sack AVB?
CHELSEA owner
Roman Abramovich
was daring enough to
embrace change in the
summer by hiring a
manager who had a
long-term vision for his
club. Unfortunately for
the Russian oligarch he
chose the wrong man
for the job and should
wield the axe again
before Andre Villas-
Boas drags his club fur-
ther into the mire.
A tactical change of
approach and an over-
haul of personnel has
been long overdue at
Stamford Bridge.
The Portuguese,
however, has been
guilty of attempting
too much too soon and
consequently alienated
the clubs senior pros
and implemented a
gameplan which suits
nobody.
Ready made candi-
dates to replace him
are hardly plentiful, but
thats no reason to per-
sist with someone so
clearly out of his depth.
Lets get one thing
straight: you dont win
the treble unless youre
a very talented manag-
er indeed. Much less at
the age of 33, in your
first full season in
charge of any club, and
in a good European
league.
Andre Villas-Boas
did that less than 12
months ago. Harry
Redknapp, the unani-
mous choice to lead
England, has not won
three major trophies in
the entirety of his 29-
year managerial career.
It has not gone well
at Chelsea, but given
the task transforming
the teams style, phas-
ing out washed up
stars, while remaining
at the top it is no sur-
prise. Any manager
would have struggled.
The truth is hiring
any manager is a risk.
So is sacking them. But
Villas-Boas has already
achieved enough to
deserve an extended
crack of the whip.
JAMES GOLDMAN
YES
FRANK DALLERES
NO
BY JAMES GOLDMAN
FOOTBALL
BY JAMES GOLDMAN
CRICKET
Villas-Boas has
not won in five
matches
Picture: PA
35
KYRAN BRACKEN ON A CRUNCH
SIX NATIONS WEEKEND
FORMER ENGLAND STAR PREVIEWS
WALES SHOWDOWN: TOMORROW
Results
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email sport@cityam.com
SPORT | IN BRIEF
Rooney out of Ajax return leg
FOOTBALL: Manchester United striker
Wayne Rooney will miss tonights
Europa League last-32 second leg match
against Ajax with a sore throat. United
lead 2-0 from the away leg.
England Legends to face Ireland
RUGBY UNION: Martin Corry and Jason
Robinson are among England Legends
set to face Irish Legends at The Stoop
on 16 March. Tickets start at 5 and
proceeds go towards the RFU Injured
Players Foundation and other rugby
causes. See www.quins.co.uk for details.
FORMER England captain Phil Vickery
believes head coach Stuart Lancaster
must be bold enough to tinker with a
winning team and unleash Manu
Tuilagi against Wales in Saturdays piv-
otal Six Nations clash.
Despite Lancasters tenure having
commenced with victories away from
home against Scotland and Italy, both
performances were depressingly remi-
niscent, despite the significant change
in personnel, of those dour, unimagi-
native displays England turned in at
last Octobers World Cup.
Tuilagi, the powerfully built
Leicester centre, was one of the few
members of Englands touring party to
return home with their on-field repu-
tations enhanced he was fined twice
for wearing a branded gumshield and
for leaping from a ferry but injury
has restricted him to just five matches
for his club this season.
The Samoan-born 20-year-old fea-
tured in last Sundays win over
Premiership champions Saracens and
Vickery believes that, despite his lack
of match fitness, England cannot
afford to without his ball carrying abil-
ity against a Welsh side who also boast
a flawless start to the tournament.
Whether Stuart and the rest of the
coaches opt to stick or twist is obvious-
ly a very difficult decision to make. You
cant take away from the guys what
theyve done so far but the one thing
England will need on Saturday is pene-
tration, he told City A.M.
This Welsh side are defensively very
aggressive and Stuart will need to
select a side that can burst its way
around the field. Personally I think
that has to mean a recall for Tuilagi
even though hes lacking sharpness.
He would create the opportunities
to get down the middle of the field
and to give targets for that England
pack to come round the corner and
build momentum.
Despite the turgid nature of their
victories over Scotland and Italy,
Vickery has been impressed by the
resolve England have shown under
Lancaster, who names his team to face
Wales today, thus far.
The former Test prop, how-
ever, recognises the Red Rose
face an enormous task to halt
a Wales side this weekend
whose resurrection under
Warren Gatland should
provide England with
the belief that they
can escape the dol-
drums by the
time the 2015
World Cup comes
around.
He said:
Wales have got
a great ethos
and I was inspired by what they did in
the World Cup. Theyve got a great
man in charge and a fantastic back-up
team. They really are the blueprint
that England need to follow. Theyve
been through troubled times them-
selves and if anything from Englands
point of view they should see how
quickly its possible to get back on
track and overcome those diffi-
culties. They all proud to be
representing their country.
Phil Vickery is representing Team
England in the upcoming DHL
First Nation Home Challenge
in aid of this year's Sport
Relief. For more information,
and for behind-the-scenes
access to the teams visit
www.firstnationhome.com
Vickery urges England
to turn on the power
by recalling Tuilagi
BY JAMES GOLDMAN
RUGBY UNION
Tuilagi has played only five times for Leicester this season Picture: GETTY

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