FTSE 100 5,808.89 -55.76 DOW 12,048.95 -21.87 NASDAQ 2,675.38 -26.18 /$ 1.64 unc / 1.12 unc /$ 1.

1.12 unc /$ 1.46 -0.01

Berlin sets
in for fight
with ECB
GERMANY has made an audacious
attempt to seize the initiative in Greek
bailout negotiations, telling the
European Central Bank (ECB) that pri-
vate investors in Athens debt must
accept a seven-year increase in the
maturity of their bonds.
In a letter sent to the ECB, German
finance minister Wolfgang Schaeuble
said: Any additional financial support
for Greece has to involve a fair burden-
sharing between taxpayers and private
investors.
The ECB has repeatedly blackballed
any attempt to introduce even a mild
form of debt restructuring for private
buyers of Greeces debt. ECB board
member Christian Noyer recently
called the idea a horror story.
But Germany has dug in its heels,
setting the stage for a pitched battle
over the fate of the single currency.
Schaeuble says a new bailout has to
lead to a quantified and substantial
contribution of bondholders to the
support effort. He says the best solu-
tion is a seven-year increase in the
maturity of all of Greeces debt.
But the ECB is firmly against a
restructuring, in part because of its
own exposure to Greek debt after it
bought up billions in an attempt to
prevent the need for a bailout.
The think tank Open Europe esti-
mates: Should Greece restructure
half of its debt, which is needed to
bring down the countrys debt to sus-
tainable levels, the ECB is set to face
losses of 44.5 - 65.8bn (39.6 - 58.6bn).
BY JULIET SAMUEL
EUROZONE

Pennsylvanian
oil boom
1861-69 1870-79 1880-89 1890-99 1900-09 1910-19 1920-29 1930-39 1940-49 1950-59 1960-69 1970-79 1980-89 1990-99 2000-09 2010-19
120
110
100
90
80
70
60
50
40
30
20
10
0
$ 2010
$ money of the day
Yom Kippur war Iranian
revolution
Invasion
of Iraq
Oil prices are very high by historical standards but remain lower after inflation than they were in the 1970s.
THE PRICE of oil jumped yesterday
after cartel Opec failed to agree a deal
to increase its output, making future
supply uncertain and raising concerns
over the economic recovery.
Brent crude spot prices rose 2.1 per
cent to $117.84 a barrel after Opecs
meeting in Vienna ended without
deciding whether the 12 members
should raise production quotas by
1.5m barrels a day, as suggested by
Saudi Arabia.
Six countries including Iran,
Venezuela and Libya refused to follow
Saudi Arabias lead, arguing about the
level of global demand, in a sign of
growing tensions between the mem-
bers over the direction of the cartel.
Opecs own forecasts suggest
demand for the clubs oil will rise by
2.1m barrels a day between the second
and third quarters.
We were unable to reach an agree-
ment this is one of the worst meet-
ings we have ever had, Saudi oil
minister Ali al-Naimi said after failing
to convince other members.
Venezuelan minister Rafael Ramirez
said a rise in output would have
caused the price to collapse given
current volatility, but insisted: Opec
remains united and has emerged
strengthened from the meeting.
Oil futures shot up more than two
per cent just minutes after the meet-
ing ended, having earlier fallen in
OIL SURGES AFTER
OPEC STALEMATE
BY MARION DAKERS
ENERGY

www.cityam.com Issue 1,399 Thursday 9 June 2011 FREE

BUSINESS WITH PERSONALITY
anticipation of a production hike.
Brent crude for July delivery stood at
$117.87 a barrel last night, a rise of one
per cent.
The news added to a broader uncer-
tainty in the equities markets, which
saw the FTSE 100 close at its lowest
level in almost three months.
It came as a surprise. If you look at
demand it will be very robust in the
next months and there is a big need
for extra Opec oil, said Amrita Sen
from Barclays Capital. It will be
important to see if the Saudis are will-
ing to supply more... Otherwise the
market will be very tight.
The International Energy Agency
(IEA) said it was disappointed, adding:
What really matters is actual supply,
which should move in line with sea-
sonally rising demand, and we urge
key producers to respond accordingly.
Otherwise, a further tightening in the
market and potential increases in
prices risk undermining economic
recovery. The IEA estimated last
month that Opec produced 28.75m
barrels a day in the first quarter of the
year, or just under a third of the global
oil supply. ALLISTER HEATH: P2
Certified Distribution
04/04/11 - 01/05/11 is 103,899
ENGLANDS leading clubs are jeopar-
dising their futures by spending
increasingly dangerous sums on player
wages, one of the countrys most
prominent football finance experts
warned last night.
Premier League teams forked out a
record 68 per cent of their income on
pay packets during the 2009-10 season,
according to research published today
by Deloittes Sports Business Group.
The total wage bill of 1.4bn consti-
tuted a five per cent rise and wiped out
a two per cent improvement in rev-
enues that saw top-flight clubs collec-
tively earn more than 2bn for the first
time.
Deloittes Dan Jones, who edited the
Annual Review of Football Finance,
told City A.M. the increase in wages-to-
turnover ratio was cause for alarm.
The thing that concerns us is that we
went through about 10 years of the
wages-to-turnover ratio in the Premier
League being around 60 per cent, said
Jones.
Then suddenly last year it went up
to 67 per cent and this year its edged
up to 68 per cent. We think that is right
at the boundaries of where you want it
be. Weve always talked about 70 per
cent as being a warning level.
Obviously you have to look at each
individual club, but for the Premier
League overall to be edging towards
that 70 per cent mark is a concern.
FULL ANALYSIS: PAGES 26-27
Soaring wages endangering football clubs, Deloitte warns
BY FRANK DALLERES
SPORT BUSINESS

ANALYSIS l Crude oil prices 1861-2010

News
2 CITYA.M. 9 JUNE 2011
Four directors
to leave ENRC
KEN Olisa, one of two directors yester-
day voted off the board of resources
group ENRC after voicing corporate
governance concerns at the FTSE 100
company, said the firm must be pret-
ty vulnerable to an investigation by
the UK listing authorities.
Olisa told City A.M.: When we went
public the people selling shares made
commitments that they would not
get involved in the running of the
company.
He added that the shares market
now would decide whether it wants
to invest in a company which is so
clearly in the orbit of its controlling
shareholders.
Olisa was removed from the board
along with City grandee Sir Richard
Sykes after a vote by shareholders.
The group is still controlled by its
majority Kazakh shareholders, who
voted against Olisa and Sykes. Two
other directors are understood to
have stepped down.
The board of ENRC has been the
subject of repeated reports of internal
disagreements, particularly after a
controversial deal last year involving
the purchase of a disputed licence to
mine copper in the Democratic
Republic of Congo, which is still the
subject of a legal dispute. The group
launched a comprehensive corpo-
rate governance review.
BY DAVID HELLIER
RESOURCES

Rejoice: Opecs days are numbered

THERE was a time when the
Organisation of the Petroleum
Exporting Countries (Opec), the cartel
of oil producing nations, was the
worlds Enemy Number One. The
group wielded terrifying powers: it
could make or break economies by
increasing or reducing the supply of
oil, sending its price rocketing or
crashing. No longer: Opec, while still a
destructive force, has mutated from
scary to ridiculous. Rather than fear-
ing its meetings, people are starting to
see their funny side: a bunch of squab-
bling, self-interested nations that are
unable to agree on anything.
Take yesterdays meeting. It was
hoped Opec would hike output, per-
haps by 5-6 per cent, to compensate for
the reduced supply from Libya and try
and dampen oil prices, now so elevat-
ed that they are cutting demand and
actually hitting producers. It was not
to be. The meeting descended into
farce, with members angrily ganging
up on each other and describing the
gathering as the worst-ever. Less amus-
ingly, the price of oil jumped on news
of the bust-up.
Marc Ostwald, a strategist at
Monument Securities whose notes are
invariably interesting, convincingly
argues that yesterdays fiasco con-
firms that Opec is moving closer to
break-up. This would be wonderful
news for oil consuming nations and
it would finally eliminate a 40-odd
year distortion at the heart of the glob-
al economy. All cartels are bad but
cartels of states are the worst.
The problem for Opec is that its
memberships interests are so diver-
gent. It has 12 member countries: six
in the Middle East (Saudi Arabia,
Kuwait, Qatar, the United Arab
Emirates, Iran and Iraq), four in Africa
(Algeria, Angola, Libya and Nigeria),
and two in South America (Ecuador
and Venezuela). Algeria, Venezuela,
Iraq were definitely against increasing
output, as almost certainly were Iran,
Angola and Nigeria. This suggests only
the Gulf Cooperation Council coun-
tries, friends of the West, backed an
increase. The biggest beneficiaries of
the cartels dwindling influence may
well prove to be non-Opec energy pro-
ducers such as Russia and Kazakhstan.
This would come with its own prob-
lems, of course, but competition is
always better than monopolies,
including in the supply of oil.
So why did so many countries not
want to increase output, despite the
high price of oil? Opec countries are
desperate to use foreign exchange
reserves from oil sales to subsidise the
price of increasingly expensive food
imports to avoid a popular uprising
and thus the fate of Egypt and Tunisia.
Many Opec members would struggle
to increase their production, most
notably Iran, or need a lot more invest-
ment to do so (Algeria, Angola, Iraq,
Nigeria and Venezuela fall into this
camp). Last but not least, many Opec
nations hate the US as much as ever.
Opecs woes are another reminder
that the post-World War II interna-
tional order is disintegrating. The
Eurozone, the World Bank/IMF, the
dollars rule as the worlds reserve cur-
rency, the illusion of unity at the G20
and even the United Nations are los-
ing their credibility. Instead of
bemoaning this collapse of outdated
institutions, we should look forward
to building a much looser, less
Western-centric, network-based global
order, built on trade, globalisation
and security pacts rather than on
bureaucracies. One thing is sure: the
new world order has no room for obso-
lete cartels such as Opec.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
NISSAN is to make a 192m invest-
ment to build the new version of the
Nissan Qashqai car in the UK.
Prime Minister David Cameron,
who invited Nissan chief Carlos Ghosn
to Downing Street to announce the
decision, is keen to present the compa-
nys decision as a coup for UK car man-
ufacturing. Nearly a million Nissan
Qashqai cars have been produced
since its release, with most of the parts
coming from UK suppliers.
Designing and building the new ver-
sion is expected to preserve 6,000
British jobs. The firm also has plans to
invest 420m in its Sunderland factory
to produce the Nissan LEAF, an electric
car, from 2013 onwards.
Ghosn said: The UK has been a cor-
nerstone of Nissan manufacturing
since 1986... Its the home of the
Qashqai, one of Nissans biggest prod-
uct successes. Nissan employs 12,500
across Europe and last year produced
528,000 cars at factories in the region.
BY JULIET SAMUEL
MANUFACTURING

PM cheers UK cars boost

Prime Minister David Cameron said Nissans decision is fantastic news
NEWS | IN BRIEF
Exxon spends $1.7bn on shale
Exxon Mobil said it bought privately held
natural gas company Phillips Resources
and related company TWP Inc for
$1.69bn (1bn) last week, picking up
about 317,000 acres for exploration in the
Marcellus shale basin. The action high-
lights the importance Exxon is placing on
natural gas assets after spending about
$30bn last year to buy natural gas compa-
ny XTO Energy, adding one of the leading
developers of shale gas and a resource
base of 45 trillion cubic feet of gas equiva-
lent.
KKR eyes stake in ING business
Private equity giant KKR & Co is eyeing a
minority stake in INGs US online bank,
ING Direct USA, a source familiar with the
situation said last night. General Electric
and Capital One Financial are also under-
stood to have submitted bids. ING was
forced to split its insurance and bank
operations and agreed to divest ING
Direct USA by 2013 to obtain European
Commission approval for 10bn (8.9bn)
of Dutch state aid received in 2008 during
the financial crisis. The bank has said it
would repay the remaining 3bn by May
2012.
EDITORS LETTER
ALLISTER HEATH
7
th
Floor, Centurion House,
24 Monument Street, London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
Editorial Statement
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self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editors
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Ken Olisa, who is also a
Thomson Reuters
director, criticised
ENRCs board and was
voted off it
BRISTOL WATER SALE LOOMS
The owners of Bristol Water have
appointed Citigroup to advise on a pos-
sible sale of the company, according to
people familiar with the matter, in a
move that paves the way for the first
deal in the privatised UK industry
since the financial crisis. Agbar, the
Spanish water specialist majority-
owned by France-based Suez
Environnement, should expect to
fetch about 370m for the utility,
based on typical takeout multiples.
OPHIR SET FOR $1BN LONDON FLOAT
Ophir Energy, the African explorer
backed by Lakshmi Mittal, one of
Britains richest men, is set to tap into
the demand for energy stocks by
announcing this morning its inten-
tion to float on the London market.
The flotation is expected to value
Ophir at more than $1bn (607m),
making it one of the largest explo-
ration IPOs in London. Ophir hopes to
raise up to $400m through the sale of
new shares to fund exploration.
TEMASEK CHIEF TO STEP DOWN
Ho Ching, the executive director and
chief executive officer of Singapores
Temasek investment fund, is likely to
step down in August, according to peo-
ple familiar with the matter. If con-
firmed, her departure would come at
a time when the fund, whose sole
shareholder is the Singaporean gov-
ernment, has fully recovered from the
financial crisis, during which the
value of its portfolio fell from S$185bn
($150bn) to S$130bn.
US SOLAR NEARS COMPETING ON PRICE
US solar power will compete on price
with conventional generation within
three years without subsidy thanks to
plummeting costs, industry leaders
say. In a breakthrough for renewable
generation, the cost of solar power in
California is near that of gas-fired
plants at times of peak demand.
FACEBOOK SPARKS PRIVACY ROW
Facebook secretly changed users pri-
vacy settings to turn on technology
that automatically identifies people in
photographs, renewing concerns
about the social networking sites
practices. The feature uses facial recog-
nition technology to analyse photo-
graphs of users then asks Facebook
friends to tag them. But Facebook
does not give its 500 million users the
option of not being tagged in this way.
LORAL PEACE TREATY IN TATTERS
The family feud that racked the
LOral empire last year broke out
again yesterday after the daughter of
heiress Liliane Bettencourt sought to
have her placed under legal protec-
tion. Franoise Bettencourt-Meyers
took action after a judge ruled in
March that her mother, who has a
14.5 billion fortune, was no longer in
full possession of her faculties.
ONE IN EIGHT STRUGGLE TO PAY BILLS
Sharp increases in energy and food
prices mean household budgets are
being stretched to breaking point, leav-
ing six million people unable to pay
their bills on time. The figure has more
than doubled since last summer, from
5 per cent to 12 per cent today. It means
many are turning to debt to cover the
shortfall in their household incomes.
HOUSE OF LORDS GETS 6M EXPENSES
Figures released by Parliament show
that peers received more than 6 mil-
lion in allowances during the first
three months of the new regime, com-
pared to around 4.25 million the year
before, when the old system was still
operating. Among those who claimed
were two Conservative peers, Lord
Taylor of Warwick and Lord
Hanningfield, who have since been
convicted of fraud after being found
guilty of cheating on their expenses.
GENETICS CLUE TO E. COLI OUTBREAK
The culprit behind Europe's E. coli out-
break appears to be an evolved and
extremely toxic version of a bug first
identified in Mnster, Germany, in
2001, according to genetic analyses.
Identifying the bugs ancestor may
help scientists identify the origin,
spread and source of the disease.
PORTUGAL BEGINS COALITION TALKS
Portugals prime minister-elect Pedro
Passos Coelho and the conservative
Democratic and Social Center Party
started official talks yesterday to form
a coalition government that will allow
Lisbon to quickly implement a 78 bil-
lion ($114.54 billion) bailout program.
Passos Coelhos center-right Social
Democratic Party won general elec-
tions late Sunday, defeating the
Socialist Party of Prime Minister Jos
Scrates, but falling short of having a
majority in Parliament.
WHAT THE OTHER PAPERS SAY THIS MORNING
THE heads of Britains four biggest
lenders were at loggerheads over bank-
ing reform yesterday, with RBS chief
Stephen Hester saying that the Vickers
Commissions proposals would
increase systemic risk while HSBC
chairman Douglas Flint said they are
required to protect depositors.
Following business secretary Vince
Cables latest attack on banks for insuf-
ficient lending yesterday, the bank
chiefs were debating Vickers proposal
to ringfence retail banks from whole-
sale at a committee hearing with MPs.
Flint said that a ringfence could pro-
tect depositors: I think it is required
The primary responsibility of policy-
makers should be to make sure the
supply of credit to the real economy is
uninterrupted.
Lloyds chief Antnio Horta-Osrio
agreed, saying: I do think that separa-
tion protects customers and is a key
part of any resolution plan. He also
attacked investment banks, claiming
the cost of their activities does not
fully reflect the risks being taken due
to cross-funding between wholesale
and retail business lines.
But this was flatly denied by Bob
Diamond, chief of Barclays, which
derives most of its revenues from its
investment bank. Our retail deposits
do not fund our investment bank, he
said. Theres no transfer of funding.
RBSs Hester, whose investment
bank is also its most profitable divi-
sion, argued that ringfencing certain
retail activities would decrease banks
ability to withstand risk and increase
costs and could reduce the diversifi-
cation of asset funding within banks.
He added that it would exacerbate
the problem of moral hazard by creat-
ing a protected beast, the domestic
banks that would have explicit gov-
ernment backing.
During three hours of hearings,
Horta-Osrio also came under fire for
pressing on with the sale of 620
branches despite Vickers desire for
Lloyds to sell more. Committee chair
Andrew Tyrie accused him of planning
to present Vickers with a fait accom-
pli on the deal in September.
Bank chiefs
clash on plan
for ringfence
Barclays Bob Diamond (left), and HSBCs Douglas Flint (right) Pictures: PA/REUTERS
BY JULIET SAMUEL
BANKING

News
3 CITYA.M. 9 JUNE 2011
Lloyds Antnio Horta-Osrio (left) and RBSs Stephen Hester (right) Picture: REUTERS
BANK CHIEFS KEY
POINTS DURING
COMMONS HEARING
RINGFENCING
The banks were split on Vickers proposal
to create a firewall between retail and
investment banking activities. RBS chief
Stephen Hester said that if there must be a
ringfence, make it incredibly small and
tight so that in two generations time its
not the halo of state protection. But
HSBCs Douglas Flint said that a ringfence
should follow standard accounting rules to
make it easier to carve up banks balance
sheets. Barclays chief Bob Diamond said
that operational subsidiarisation, whereby
the banks payments infrastructure is
ringfenced, would be preferable. Hester
also said that bail-in debt would be more
effective at containing risk than a ringfence.
COMPETITION
All the bank chiefs denied that market
share is key to competitiveness in the retail
market, with Hester calling size a red her-
ring in the debate. Lloyds chief Antnio
Horta-Osrio claimed that increasing the
ease of account-switching would do most
of the work to address competition issues,
while HSBCs Flint warned: By designating
[some banks] systemically important insti-
tutions, you concentrate activity in them.
CAPITAL RATIOS
Diamond said that Vickers recommenda-
tion for a 10 per cent core tier one capital
ratio is too high for a pro-growth bank.
The other banks said 10 per cent was now
consensus, but Flint warned: If we go
much beyond 10 per cent... we will risk
costs to the economy.
CITY VIEWS: ARE YOU WORRIED ABOUT HIGHER OIL PRICES DERAILING THE
ECONOMIC RECOVERY? Interviews by Phoebe Torrance and Shiba Babamiri
The recovery will certainly slow
down because higher oil prices
push everybodys costs up. That
takes money out of the economy,
which could be spent on things
that boost the recovery.
MALDWYN WORSLEY-TONKS | RED24
Yes, it will. An increase in oil
prices has an impact on every-
thing. We are too dependant on
oil, but the green, sustainable
sources of energy cant yet satisfy
demand.
JONATHAN LEGG | GIANT INSURANCE
Yes. Because of political turmoil in the Middle East, there are fears over the supply of
oil. That increases the price and therefore damages the chances of recovery for the
global economy.
TAIJI IWAI | TOKIO MARINE EUROPE INSURANCE
News
4 CITYA.M. 9 JUNE 2011
0-1.5
1.5-3.0
3.0-4.5
4.5-6.0
> 6.0
ANALYSIS | 2010 consumption per capita
MILLION TONNES
OIL EQUIVALENT
BP downbeat on Rosneft
BP CHIEF executive Bob Dudley yes-
terday gave a downbeat view of his
firms chances of reviving a deal
with Russias Rosneft, as the oil
giant revealed its annual global
review of world energy.
Whether that project goes for-
ward or not, its very quiet. This is
part of a big portfolio of exploration
pursuit. Sometimes its successful,
sometimes its not, Bob Dudley said
yesterday at the launch of the
review, making a fresh deal with
Rosneft to explore its blocks in the
Arctic seem unlikely.
Dudley said the firm was moving
on, with explorations in Azerbaijan
and Brazil progressing.
BP painted a more positive picture
of the global oil reserves, claiming
that the world found more new oil
than it used up in 2010.
Its research said global proven oil
reserves rose by 6bn barrels to 1.383
trillion barrels at the end of 2010.
Oil output rose to 82m barrels per
day (bpd), or an annual total of
29.9bn barrels, while world oil use
recovered, after two years of decline,
by 3.1 per cent to 87.4m barrels per
day in 2010.
But across all energy forms, global
consumption rose 5.6 per cent in
2010, the biggest increase in percent-
age terms since 1973.
Coal consumption jumped 7.6 per
cent, while nuclear power rose two
per cent.
All forms of energy grew strongly
[last year], with growth in fossil fuels
suggesting that global CO2 emis-
sions from energy use grew at the
fastest rate since 1969, the review
said.
Chinese energy consumption
grew by a massive 11.2 per cent, as
the country surpassed the US as the
worlds largest energy consumer.
BY MARION DAKERS
ENERGY

News
5 CITYA.M. 9 JUNE 2011
13000
12000
11000
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 0910 0
13000
12000
11000
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
COAL
RENEWABLES
HYDROELECTRICITY
NUCLEAR ENERGY
NATURAL GAS
OIL
Asia Pacifc Africa Middle East Europe & Eurasia S. & Cent. America North America
NORTH
AMERICA
S. & CENT.
AMERICA
EUROPE
& EURASIA
MIDDLE
EAST
AFRICA ASIA
PACIFIC
100
90
80
70
60
50
40
30
20
10
0
ANALYSIS | World energy consumption
(million tonnes oil equivalent)
ANALYSIS | Regional energy consumption
pattern 2010 (per cent)
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Cpenng hous: Monduy Vednesduy & Iduy 1cum;pm |
1husduy 1cum&pm | SuIuduy 1cum6pm | Sunduy 1zpm<pm
UnI , 1c; Cheupsde Iondon 1eI: czc; 6cc qzc<
he London Nocturne
takes place on the streets
around Smithfield Market
from 4.30pm to 10.30pm on
Saturday 11 June, offering
spectators the chance to watch a
wide range of professional and
'eccentric' bike races. Details
from www.londonnocturne.com
NEW8 FROM THE
CTY OF LONDON
Get City news. info and offers at
www.cityoflondon.gov.uk/eshot
8tories supplied by the City of London
ADVERT8EMENT
Get on your bike
at 8mithfieldl
City Blues, Martha Richler's cartoon exhibition about the City and the
financial crisis, runs until Monday 20 June at Guildhall Art Gallery.
T-shirts and signed prints available from the Shop. Free admission.
Sir Mark Stanhope, Chief of the
Naval Staff, will take part in the
Armed Forces Flag Raising Day
at Guildhall on Monday 20 June
from 11.45am to 12.45pm with
music from a military band.
After meetings in Rio de Janeiro, Belo Horizonte and Brasilia,
Lord Mayor Michael Bear arrives in Sao Paulo today, leading a
City delegation of firms seeking stronger business links with
South America's biggest economy and the host for the 2014
World Cup and 2016 Olympics.
Forces flag raised at
Guildhall
Final call for Marf
Lord Mayor forges business links with Brazil
T
We y from Gatwick and Stansted. Price correct as at 24 May 2011 for travel between 6 June and 4 August 2011.
Variable charges for hold baggage apply and some payment methods attract a handling fee. See website for details.
London to
Copenhagen
from
single
inc. taxes

33
.99
THE UKs Serious Fraud Office (SFO)
was yesterday granted a temporary
reprieve from plans to absorb it into a
new national crime agency, after the
home secretary Theresa May con-
firmed that a decision on its break up
would be delayed.
Speaking as she unveiled more
detailed plans for a new agency to
tackle organised and economic crime
in the UK, May said that the SFO
would stay as it is, at least until the
new body is up and running.
Instead of absorbing the SFO out-
right, part of the national crime
agency will now act as a coordinating
board for its functions, along with
those of other economic crime bodies.
We are setting up very soon a co-
ordinating board, which is going to
give a very clear message that we are
taking economic crime seriously, said
May.
The potential for a review of the
structure next year would coincide
with SFO director Richard Aldermans
planned retirement.
After the concept of the new agency
was unveiled in June last year, the
Financial Services Authority and
Office of Fair Trading successfully
argued that they should be excluded
from its jurisdiction.
SFO break up delayed as
crime agency launches
News
6 CITYA.M. 9 JUNE 2011
BY ELIZABETH FOURNIER
POLITICS

Is George Osborne doing enough

to promote growth in the UK?
In association with
PoliticsHome.com
Apply to join today at
www.cityam.com/panel
THIS week were asking members of
our readers panel, recruited in asso-
ciation with PoliticsHome, to have
their say on how well the chancellor
is doing.
To tell us your views on whether
George Osborne has got it right on
the economy, banking regulation and
the 50p income tax, apply to join the
panel at www.cityam.com/panel
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of winning a free luxury weekend to
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PoliticsHome.com PoliticsHome.com
SHARES in newly-listed companies in
London have failed to match the per-
formance of the FTSE All-Share index
since stocks began to recover from the
financial crisis, rising an average of
just 10 per cent compared to the 50
per cent increase seen on the rest of
the index.
According to the Bloomberg IPO
index, London firms making their
debut on the FTSE have been lagging
behind the rest of the market since
June 2009.
The index tracks the share price of
newly floated firms for the first 12
months after they list.
Only one of the eight companies
that have floated in London this year
is trading above its initial offer price,
according to data provider Dealogic.
In the US, 37 of the 66 floats so far
this year are trading at a premium to
their listing price.
Nasdaq-listed drugmaker Endocyte
is the best-performing IPO in the US so
far this year, currently trading at
about 93 per cent above its offer price
of $6 per share.
Underlying the slack performance
in the UK is a tense stand-
off between financial
firms, as revealed in City
A.M. yesterday.
As our special investiga-
tion revealed, a group of
banking consultants, such
as STJ Advisors, claim that
bulge bracket investment
banks are talking down the
price of some flotations.
Conversely, investors think
IPOs are being priced too
high.
Are we being greedy as
investors demanding those
discounts? I dont think so,
said Henry Dixon, fund man-
ager at investment house
Matterley.
You have less of the compa-
nys history available to you
and the odds stacked against
you as the buyer. You do need
to demand a discount.
He added that banks were worried
they would fail to win business if they
recommended listing a firm at a dis-
count to its competitors.
You arent going to win a pitch for
a company saying they will list at
eight times earnings, he said.
The battle raging between the
financial firms was first exposed by
BlackRock, the worlds largest
investor, after it sent an open letter to
investment banks hitting out at
unrealistic valuations.
Capital markets partner at
PricewaterhouseCoopers Richard
Weaver said: The stats tend to back
up the view that the system is not
working as well as it might.
Of course you can have prevailing
market conditions making it difficult
to get offers away, regardless of the
best efforts of all concerned. But clear-
ly the BlackRock letter and responses
suggest a more underlying lack of
trust between what you can broadly
call the buy side and the sell side.
Inevitably, youre going to get situ-
ations where you cant please all of
the people all of the time.
Our special investigation in yesterdays
paper
Shares of IPO
firms fail to
match FTSE
BY RICHARD PARTINGTON
CAPITAL MARKETS

News
8
SPECIAL INVESTIGATION
| CITY AT WAR
ANALYSIS l IPO market underperforms equities
180
160
140
120
100
80
60
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
180
160
140
120
100
80
60
40
20
172.4746
64.385
IPOIndex
FTSEAll Share
100 586465 +149 DOW 12,070.81 -19.15 NASDAQ 2,701.56 -1.00 /$ 1.64 unc / 1.12 unc /$ 1.47 +0.01
FEUDING has broken out between all
the key players within the City of
Londons crucial fundraising business,
in a development that threatens to
devastate confidence in Londons fal-
tering flotations market. Key advisers,
investors and bookrunners are at log-
gerheads and briefing against each
other, in the worst breakdown in rela-
tions in the City in living memory.
According to numerous sources
who have spoken anonymously to City
A.M. banking consultants such as STJ
Advisors, hired sometimes secretively
by private equity groups wishing to off-
load companies on the London mar-
ket, are clashing with the bulge
bracket investment banks that are
responsible for bringing flotations to
the market.
Meanwhile, another key group of
City financiers the buy-side firms
that invest in newly floated firms are
continuing to warn that new shares
are being offered at too high a price.
BlackRock, traditionally one of the
big takers of new issues, issued a
scathing statement recently about the
state of the London IPO market, saying
recent events had been frustrating.
It argued that companies should
expect to float at a discount to their
peer group, that bookrunning syndi-
cates of investment banks have grown
too large and, crucially, that advisers
were being appointed on indications
of valuation that are unrealistic.
However, one banker said that the
bookrunners are caught in the middle
of an unholy row between the invest-
ing institutions, the private equity
groups that are wanting to sell out and
their advisers. These people are accus-
ing them of trying to sell stock too
cheaply.
The banker told City A.M: People like
STJ accuse the banks of misleading
clients over valuation. They say were
too partisan and too close to the invest-
ment community.
The banker said that the investment
banks feel they are constantly being
second guessed by private equity
groups advisers, whose main objec-
tive is to achieve as high a valuation as
possible for the selling company.
Their goal is to have large syndi-
cates so that they can take control of
things. They try to make the banks
compete against each other and it is
carnage.
We have always brought together
buyers and sellers in the market but
now we are being trashed, said the
banker. But we are always trying to
get deals done.
Documents seen by City A.M. show
that STJ, in particular, has aggressively
marketed its services as being able to
add up to 30 per cent in valuation for a
company wishing to float.
In the documents, STJ accuses the
bulge bracket investment banks, who
traditionally occupy the bookrunning
roles during a flotation, of talking
down investor sentiment in order to
drive down valuations.
Yesterday STJs John St John
declined to comment on the charges
made by STJ in the documents.
Adam Young of independent adviso-
ry Rothschild agrees that syndicates
have grown in size in recent months:
Its crucial to co-ordinate and counter-
balance joint bookrunners who are
always fiercely competitive with each
other, but ultimately responsibility
and accountability for getting deals
sold well must lie with them, he said.
Despite nervousness about the com-
modities market, Glencore recently
succeeded in getting its $11bn flota-
tion away, but other smaller high-
growth companies such as Edwards
and the payments service group Skrill
failed to float amid talk of a buyers
strike. There are fears that unless con-
ditions improve and relations between
the different vested interests thaw
somewhat, London will lose out to
markets such as Hong Kong.
MORE: PAGES 2,3,& 4
Certified Distribution
04/04/11 - 01/05/11 is 103,899
BlackRock
Schroders
JO Hambro
M&G
Edwards
Skrill
Merlin
STJ Advisors
Lazard
Rothschild
Goldman Sachs
Barclays Capital
Deutsche Bank
SPECIAL INVESTIGATION
BUSINESS WITH PERSONALITY
www.cityam.com
FREE
Issue 1,398 Wednesday 8 June 2011

Advisers blame each other for seizure of IPO market

FRICTION
Investors claim
company shares
are too expensive
BY DAVID HELLIER AND JULIET SAMUEL EXCLUSIVE
INSTITUTIONAL
INVESTORS
COMPANIES
THAT FAILED
TO FLOAT
IPO ADVISERS
BOOKRUNNERS
FRICTION
STJ Advisors
accuses investment
banks of talking
down valuations
SHARES in private-client broker
Walker Crips fell yesterday after the
company said that trading had
slowed in the first few months of the
year, despite reporting a rise in both
profits and revenue.
Revenues at the firm were up 14
per cent to 20.1m compared to last
year, while pre-tax profits rose to
1.75m, after a Financial Services
Compensation Charge of 220,000
relating to the collapse of Keydata.
We expect the first quarter of a
new financial year to be relatively
subdued, said chairman David
Gelber.
STRUGGLING care home operator
Southern Cross unveiled plans to cut
3,000 of its staff yesterday as it battles
to fend off bankruptcy.
The cuts, billed as a means to
address levels of staff effectiveness
across its homes, equate to six per
cent of its 44,000 workforce but
Southern Cross said they would not
affect the quality of its care.
The care provider has caused a
political storm since it admitted it
needed to reduce its rent as it is strug-
gling to pay its bills.
Concerns over the fate of the 31,000
elderly and disabled people under its
care, and a public mudslinging over
its sale and leaseback model of oper-
ating, have overshadowed the compa-
nys fight to restructure to avoid
administration.
Southern Cross has said it wants to
sell 200 of its care homes to reduce its
debt and has asked landlords for a 30
per cent respite on its rent bill over
the next four months.
But it denied that the job cuts were
directly a consequence of the finan-
cial problems at the company, and
claimed they were part of a change
programme called New Horizons
undertaken over the past 18 months.
Chief executive Jamie Buchan said
it was engaging with colleagues to
put in place the best possible staffing
model for our future needs, and one
which fully embraces the best prac-
tice available to us.
But chairman Christopher Fisher
urged support for the changes
because there is too much of value
within our business for it to be lightly
discarded.
We believe that for a critical mass
of our landlords, supporting a
restructured Southern Cross remains
the most attractive option open
to them, as we intend to demon-
strate, he said.
Jobs slashed
as Southern
Cross fights
BRITISH banks that benefited from
the governments Credit Guarantee
Scheme at the height of the credit
crunch will be able to buy back their
debt before maturity, the government
said yesterday.
Royal Bank of Scotland and Lloyds
Banking Group were the main benefi-
ciaries of the scheme, which was
closed to new entrants more than a
year ago. The Treasury said the move
demonstrated the growing health of
the banking sector.
The UK banking sector is clearly
on the mend, chancellor George
Osborne said.
Banks may quit
credit scheme
Trading slow at
Walker Crips
BY ALISON LOCK
SUPPORT SERVICES

FINANCIAL SERVICES

BANKING

Southern Cross is led by chief exec Jamie Buchan Picture: JANE MINGAY/THE TELEGRAPH
News
9
Priceless entertainment...
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MICROSOFT is preparing for an all-out
assault on the mobile phone market in
a desperate bid to regain ground ceded
to Google.
The firm plans to unveil a host of
new handsets to coincide with the
new version of its Windows Phone 7
(WP7) platform codenamed Mango
slated for release this autumn.
Among the line-up will be the first
Nokia handset developed for WP7 fol-
lowing the Finnish firms
decision to abandon its
Symbian operating sys-
tem to climb into bed
with Microsoft, led by
Steve Ballmer (pic-
tured).
Industry insiders
have described
the hand-
set
w h i c h
City A.M.
understands will be fully touch-
screen as a fantastic piece of hard-
ware.
It is understood ZTE will produce a
low cost smartphone for WP7 that
could retail for as little as 15 a month.
Samsung and HTC are also expected to
release WP7 handsets.
Microsoft has failed to gain any real
traction in the all-important smart-
phone market, with Android storming
to the head of the pack and Apples
iPhone continuing to perform well.
In the first quarter of this year
Microsoft had just a 3.6 per cent
share of newly sold smart-
phones, down from 6.8 per
cent the year before, accord-
ing to research firm
Gartner.
Android increased from
9.6 per cent to 36 per
cent. Apple will also
receive a boost from
the soon to be
released iPhone
4GS.
Microsoft gets
ready for war
with Android
GUOCOGroup yesterday confirmed it
has gained majority control of bingo
and casino operator Rank Group after
a surprisingly high number of share-
holders accepted its 150p-a-share
offer.
Rank, which runs the Mecca Bingo
and Grosvenor Casino chains, last
month rejected a 586m offer from
Guoco saying it significantly under-
valued the business. However, holders
of 15.6 per cent of Ranks issued
shares accepted the offer, taking
Guocos holding to 56.4 per cent, with
the offer remaining open to accept-
ances.
Property and investment firm
Guoco, controlled by Malaysian bil-
lionaire Quek Leng Chan, launched
its bid in May after buying a sizeable
stake from Malaysian gaming group
Genting Berhad. This took its stake to
41 per cent, triggering a mandatory
cash offer under stock exchange
rules. Guoco confirmed it intends to
maintain Ranks stock market listing
and expressed a desire to continue
working under the existing manage-
ment structure.
A Rank spokesman said: The board
is carefully considering the situation.
In the meantime, Rank shareholders
are strongly advised to take no
action.
Guoco takes
control of Rank
casinos group
GAMING

News
10 CITYA.M. 9 JUNE 2011
GOLDMANS Nick Harper is leading
the advisory team for Rank Group.
Earlier this year Harper advised
Boparan Holdings as it built up its
stake in takeover target Northern
Foods, eventually striking a takeover
deal for the Goodfellas Pizza and Foxs
biscuits maker worth 342m.
Last year he helped Betfair float on
the London Stock Exchange (LSE). The
worlds largest betting website
achieved a valuation of 1.4bn, trig-
gering an over allotment option fol-
lowing bumper demand.
Harper was also a key player in last
years 21.5bn (18.14bn) takeover of
Britains International Power (IP) by
GDF Suez. The complex deal saw
Goldman-advised GDF Suez take con-
trol of 70 per cent of the new compa-
ny, with the rest in the hands of IPs
existing shareholders. GDF Suez also
transfer some assets to IP.
In 2006 Harper worked for Boots
during its 13bn merger with Alliance
UniChem.
ADVISERS: RANK GROUP
NICK HARPER
GOLDMAN SACHS
Rank boss Ian Burke has advised shareholders not to take immediate action Picture: REX
BY STEVE DINNEEN
EXCLUSIVE

US INVESTMENT banking adviser

Evercore agreed to buy UK boutique
advisory firm Lexicon Partners for a
total 86m, it said yesterday, in a deal
set to make millionaires of Lexicons
founders.
The deal will see Andrew Sibbald,
Lexicons senior partner, 27 other
partners and more than 70 employees
share 38m in cash, equivalent to 44
per cent of the total amount, as soon
as the deal closes.
The remaining 48m will be
deferred for three to four years with
an extra year of transfer restrictions,
with more than 80 per cent of it, or
38.4m, in Evercore shares.
The deal will add to Evercores
financial services and utilities expert-
ise, while the takeover will grow its
London presence alone to 75 bankers.
Seven of Lexicons senior staff will
become senior managing directors at
Evercore, the firm said.
Sibbald will become chief executive
of Evercores European advisory busi-
ness based in Mayfair, leaving
Bernard Taylor, its current vice chair-
man and chief executive for Europe,
as European chairman.
But the takeover may alter the
shape of Lexicons deal structure,
moving it to advising bigger deals and
companies and away from its bou-
tique origins.
Lexicon has advised on high-profile
financial services deals including
defending Prudential from Avivas
unwanted takeover approach in 2006;
Jupiter Fund Managements 755m
initial public offering last year; and
private equity consortium Achilles
880m takeover of Brit Insurance,
which closed this year.
Sibbald co-founded Lexicon in 2000
with fellow bankers Angus Winther,
Duncan Buck, Mark Hennessy and
New York-based Stuart Britton, for-
mer colleagues from investment
banks Donaldson, Lufkin & Jenrette
and the Phoenix Partnership.
The deal is expected to close in the
third quarter of this year.
Evercore buys
Lexicon to up
Europe stake
BY ALISON LOCK
BANKING

News
11 CITYA.M. 9 JUNE 2011
TRAVEL company TUI Travel will leave
the FTSE 100 index on 20 June as part
of the latest quarterly reshuffle of
British indices.
Food ingredients maker Tate & Lyle
will be promoted from the FTSE 250
index as a replacement, re-entering
the blue chip index for the first time
since March 2009.
TUI Travel shares have fallen
around six per cent over the past quar-
ter, underperforming a two per cent
decline by the FTSE 100 index, amid
concern over the impact of unrest in
key holiday destinations Egypt and
Tunisia, high fuel costs and disrup-
tion from further volcanic activity.
Tate & Lyle have seen a near 18 per
cent rise since the previous quarterly
review this March, far outperforming
a two per cent rise by the FTSE 250
index.
The review was based on closing
share prices on Tuesday but the
changes had to be confirmed by a
FTSE committee meeting yesterday.
TUI exits blue
chip index in
FTSE reshuffle
MARKETS

THE 86m sale of Andrew Sibbalds 11-year-old

boutique Lexicon to US adviser Evercore is a
reward for years of work growing both its
track record and reputation.
Sibbald, believed to own about
10-15 per cent of Lexicons equi-
ty, is in line for a windfall of an
estimated 9-12m in cash
and shares as he, 27 partners
and 72 employees share the
full sum.
His dealmaking for the
Citys insurers and fund
managers is highly regard-
ed: the flotation of motor
insurer Admiral in 2004,
advised by a Lexicon team
led by Sibbald, valued the
firm at 711m rather than
the expected 600m and
bagged him the ICAEW
Corporate Financier of the
Year award.
His growth strategy at
Lexicon has seen it open
US and Asian offices and
grow its staff to 100 while
retaining the freedom of an
independent adviser. With
Evercore as Lexicons new
owner, Sibbalds reach
should extend still further.
Boutique chief joins
the big league
BY ALISON LOCK
BANKING

ANDREW SIBBALD
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COMPANY OLD INDEX NEW INDEX
Tate & Lyle FTSE 250 FTSE 100
TUI Travel FTSE 100 FTSE 250
Perform new entry FTSE 250
New World Resources new entry FTSE 250
Helical Bar FTSE 250 Small Cap
NEW Looks hopes of floating on the
public market looked increasingly dis-
tant yesterday as it admitted its
profits in the past year were
wiped out by lower sales and
higher costs.
The budget fashion retailer
said global like-for-like
sales fell 5.5 per cent
over the year and 7.1
per cent in the UK
after customers
found its clothing
ranges too pricey.
The difficulties
cut revenues by 0.2
per cent to 1.46bn,
but operating profit dropped 40 per
cent, to 98m from 162.7m in 2010,
as it said it paid a host of additional
charges. These included a 4.4m write-
down in the value of its assets to their
recoverable amount.
After administrative and finance
expenses its pre-tax profit was cut to
zero, from a 36m profit in 2010 and
after tax, it made a 2.9m loss.
Executive chairman Alistair
McGeorge (pictured), who
joined New Look in April
after the abrupt exit of his
predecessor, said the results
were disappointing.
Private equity-owned New
Look has twice announced
plans to float but has been
forced to shelve the IPO.
Profits vanish
at New Look
as sales dive
Punch says demerger on track
WHoLz LoasTzn & CHis
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2A.SD
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London, EC2M 4NR
020 7283 1763
* Subject to availability www.soisois.co.u
csissnxio Jusxsnii a enoos
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*
WARM weather has helped struggling
pub chain Punch Taverns post a rise in
sales in the three months to 28 May.
The struggling landlord unveiled a
7.3 per cent increase in like-for-like
sales in its Spirit managed pub divi-
sion.
It said like-for-like food sales were up
8.4 per cent, while drink sales were up
7.3 per cent on a like-for-like basis.
Comparable net income for the 552
leased pubs in the Spirit unit was
down 0.7 per cent.
The company said the recent hot
weather and the refurbishment of 160
of its pubs had helped to boost its sales
performance.
Punch said in March it would
demerge Spirit from its leased pub
operations as part of a strategy to
reduce its crippling 3bn debt moun-
tain.
Leased pubs, run by publicans who
pay the company rent and rely on it
for beer supplies, are generally less
profitable for the company.
The Punch leased division of the
business saw like-for-like net income
drop by 3.3 per cent over the period.
Punch said it was in the process of
converting some of these pubs to its
managed brands and said it was mak-
ing good progress on its demerger.
It added that it expected the process
to be complete by the end of the sum-
mer.
Meanwhile, the firm said the
finance director of its Spirit division,
Roddy Murray, had decided to leave
the firm just two weeks after he start-
ed the job. Punch said his departure
was a personal decision.
Chief executive Ian Dyson said: We
are pleased that our operational initia-
tives continue to translate into
improved performance for both Spirit
and Punch. This has been achieved
during a period of substantial change
as we prepare for the proposed
demerger of Spirit. Despite the chal-
lenging UK consumer environment
we are on track to meet our full year
expectations.
BY ALISON LOCK
RETAIL

BY RICHARD PARTINGTON
LEISURE

News
13 CITYA.M. 9 JUNE 2011
NEWS | IN BRIEF
Orange JV to expand retail presence
Everything Everywhere yesterday
announced that it plans to launch 30
new stores in the UK this year. The com-
pany, which was created from the merg-
er of Orange and T-Mobile, already has
over 720 stores and says it is looking to
further expand its retail presence. Chief
executive Tom Alexander said the stores
will be branded Everything Everywhere
and sell both Orange and T-Mobile prod-
ucts.
BAE sells remaining stake in Saab
Defence contractor BAE Systems has
sold the final part of its stake in weapon
maker Saab, 13 years after first investing
in the German company. BAE began sell-
ing off shares in Saab in 2005, with the
latest sale of 11.2m shares netting the
group $254m (155m). Shares in Saab,
which is separate from the well-known
car company, fell 8.39 per cent in trading
yesterday after the news broke.
Mitsubishi Estate buys Barings HQ
Japanese property company Mitsubishi
Estate has bought the old Barings head-
quarters at 6-8 Bishopsgate, paying
95m for the 20-storey tower. The firm
has already bought the building next
door, 150 Leadenhall Street, with both
properties falling within the City of
London Corporation's designated area
for tall buildings.
NEW WII FAILS TO IMPRESS
THE launch of Nintendos new Wii U failed to address investor concerns that the firm is ced-
ing ground in the so-called console wars, sending its shares tumbling to a five-year low.
The Wii U, complete with a new touchscreen controller, is aimed at winning back hardcore
gamers from rivals such as Microsofts Xbox. Nintendo shares closed down 5.7 per cent in
Japan yesterday, hitting levels not seen since before the original Wii was launched.
ANALYSIS l Punch Taverns PLC
31 May 23May 16May 9May 7Jun
p
80
78
76
74
72
70
68
74.95
8 June
ANALYST VIEWS: IS PUNCH IN A BETTER
POSITION FOR THE FUTURE? Interviews by Scarlett Archer

DOUGLAS JACK | NUMIS SECURITIES

The group remains on track in terms of expectations for 2012 and we
expect an upgrade next year despite the split. In terms of this year, trading has
benefitted from a number of operational initiatives including menu-change and
staffing, where the group has invested in more area managers per pub.

NIGEL PARSON | EVOLUTION SECURITIES

Trading at the more attractive Spirit business is improving (helped by
the fine weather) and trading is also improving at Punch. We think that Spirit
could be vulnerable to a bid once demerged, while there is sufficient asset value
within Punch to give it a good chance to restructure and de-lever.

SIMON FRENCH | PANMURE GORDON

Both businesses have done better than expected and the group remains
on track to meet its full year expectations. The only fly in the ointment is that
Roddy Murray will has decided not to take up the role of finance director delegate
at Spirit. We dont expect the shares to outperform ahead of a demerger.

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15 EDITED BY
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CITYA.M. 9 JUNE 2011
FESTIVALS
KING TO
FLOAT FIRM
ON AIM
RELIEF at Music Festivals, the new live
music venture from Mean Fiddler founder
Vince Power, which will this morning
announce its intention to achieve a 10m
valuation by floating on the alternative
investment market (AIM).
So no more sleepless nights at
Merchant Securities, the adviser on the
deal, after Power managed to raise the
6.5m needed for the IPO to go ahead,
part of which was spent on buying out the
majority shareholders in the very prof-
itable Spanish festival Benicassim, of
which Power previously held 22 per cent.
After a fraught few weeks while Music
Festivals renegotiated the terms of the
deal with the Benicassim shareholders to
offer a part-cash, part-loan note, rather
than 100 per cent cash, it was signed late
yesterday, prompting sighs of relief.
The firm plans to start trading on 23
June.
Merchant Securities paid tribute to
Powers skill in attracting the headline
acts, with Bob Dylan, Tiny Tempah,
Prince and Morrissey among the big
names booked for Music Festivals live
events this summer.
this years Leading Brokerage Firm for UK
Small Caps and Oriel Securities Richard
Rose was named Leading UK Small Caps
Analyst.
Elsewhere at the awards, BASF was
named Leading Pan-European Company
for Investor Relations; Mark Wallis of
Bank of America Merrill Lynch was
awarded Leading Pan-European Equity
Specialist Sales Person; and Asif
Jeevanjee of JP Morgan Asset
Management won Leading Pan-European
Fund Management Individual.
RACE FOR LIFE
CALLING all City supporters: City A.Ms
team of Lillian Swatton, Sophie Green,
Sophie Evans and Nzima Ndangana are
taking part in the 5k Race for Life on
Sunday 12 June at Moorgate to raise
money for Cancer Research UK. To spon-
sor the team, please see www.raceforlife-
sponsorme.org/sophiegreen0501
Once the firm is listed and people can
experience the festivals, there will be a
rush of interest from investors, added the
Merchant source, hinting that Music
Festivals already has the rights to two fur-
ther UK festivals to add to its portfolio of
Hop Farm, Benicassim and Gaelic festival
The Feis, which it will announce as the
acts are signed up. Watch this space
BANKERS OSCARS
TO THE Guildhall for the Oscars of the
investment banking world, the results of
the Thomson Reuters Extel Survey hosted
by Lord Michael Grade, with presenters
including Risk Capital Partners chair-
man Luke Johnson and Ariadne Capital
chief executive Julie Meyer.
More than 400 awards were handed out
to the buy-side, sell-side and corporate com-
munities that came out on top in the 38th
annual survey, with UBS named as the
Leading Pan-European Brokerage Firm
for Equity and Equity-Linked Research
and JP Morgan winning Leading Pan-
European Fund Management Firm.
The top individual honour went to
Andrew Wood from Sanford C
Bernstein (pictured right), who was
crowned as Leading Pan-
European Individual Equity
Analyst.
Och-Ziff Capital Partners
beat GLG and Citadel
Investment to win Lead
Pan-European Hedge
Fund, while on the small-
caps end of the market,
Investec Securities is
Back in business: Full steam ahead for Vince Power Picture: REX
Vincent
Power has
attracted
headline acts
that include
Morrissey,
Bob Dylan
and Tiny
Tempah
From left to right: Ariadne Capitals Julie Meyer;
Peter Lawrence of JP Morgan; Lord Grade
News
16 CITYA.M. 9 JUNE 2011
BRILLIANT!
BRILLIANT!
BRILLIANT!
Chris Tarrant, BBC Radio 2
NOL COWARD THEATRE
0844 482 5141
RENTS in London and the south east
shot up faster than in all other UK
regions in the three months to April,
a study revealed today.
And rents in the capital are expect-
ed to increase more than in any other
region in the coming months, accord-
ing to the Royal Institution of
Chartered Surveyors (RICS).
Fifty-nine per cent more surveyors
in London expect rents to rise
than those expecting rents to drop.
Across the UK, 33 per cent more sur-
veyors expect rents to rise rather than
fall.
However, it is significant that
rents improved across all regions in
the three months to April, RICS
added.
Rents in London are expected to
jump by eight to 10 per cent this year,
said property consultants Cluttons.
A positive balance of 42 per cent of
respondents across the UK said that
rental prices have increased, up from
40 per cent the previous month.
Many potential homeowners are
still restricted from getting a foot on
the property ladder, RICS explained.
Over a third (35 per cent) of survey-
ors reported seeing a rise in demand
in the three months to April.
However, rental prices may get
some relief soon from higher supply,
as new instructions increased for the
first time in two years.
AMERICA could lose its AAA credit
rating if the government fails to raise
its debt ceiling and subsequently miss-
es interest payments in August, lead-
ing ratings agency Fitch warned
yesterday.
Some Republicans have been flirt-
ing with the notion that a brief US
default might be an acceptable price
to pay if it forces the White House to
deal with runaway spending in their
negotiations over raising the national
debt ceiling.
Even a so-called technical default
would suggest a crisis of governance
from a sovereign credit and rating per-
spective, Fitch said in a statement. If
this were to happen, it is unlikely
that its AAA status would be retained
in the short to medium term, it said.
The news came after the
International Monetary Fund (IMF)
signalled that a further programme
of quantitative easing (QE3) was not
necessary for US recovery.
Our expectation is current US
monetary policy is consistent with a
return to moderate growth, said
IMFs acting head John Lipsky.
Lipsky echoed the words of Federal
Reserve chief Ben Bernanke, saying
that the slowdown in US growth seen
at the start of 2011 was likely to be
temporary, caused by energy prices.
The Feds Beige Book also cited ener-
gy prices, as well as knock-on effects
from the Japanese earthquake, for a
slowdown in US growth.
Economic activity generally con-
tinued to expand since the last report,
though a few Districts indicated some
deceleration, the Book said.
Real estate continued to show
widespread weakness, it said. Earlier
in the day mortgage applications were
revealed at 4.4 per cent down last
week, according to data from the
Mortgage Bankers Association.
Fitch to downgrade US if
debt repayments missed
US ECONOMY

STERLING fell to a one-month low

against the euro and slid against the
dollar yesterday morning, after a
Moodys analyst was quoted saying
the UK was at risk of losing its top-
notch rating.
The UK could lose its AAA rating if
growth remained weak and the gov-
ernment failed to meet its fiscal con-
solidation targets, the analyst said.
The rating agency subsequently
said its outlook for Britain was stable,
though it might reconsider if targets
were missed.
The euro rose to 89.76p, while the
pound touched a low of $1.635,
although sterling pared losses against
the dollar in later trading, and gained
against the euro.
Both the European Central Bank
(ECB) and Bank of England announce
their latest interest rates decisions
today. The ECB is expected to indicate
a near-term rate hike.
Failure to cut deficit may
see UKs rating lowered
UK ECONOMY

High demand pushes

up Londoners rents
BY JULIAN HARRIS
HOUSING

NEWS | IN BRIEF
Proposals over student visas face criticism
The governments proposed immigration cap came
under attack last night from leading liberal think
tank CentreForum, as it warned the changes could
risk closure of private colleges. International stu-
dents at private colleges will be unable to work part-
time under the new proposals.
Investment drove 0.8pc Eurozone growth
Investment was the driver for first quarter economic
growth of 0.8 per cent in the Eurozone, according to
the official second estimate released yesterday up
from 0.3 per cent in the final three months of last
year. Household and government consumption also
made significant contributions.
Japanese morale recovering from quake
Japans service sector sentiment index rose to 36 in
May, according to the governments Eco Watchers
survey up from 28.3 in April, and continuing its
recovery from Marchs devastating earthquake.
German trade balance hit by low exports
German exports posted their biggest drop
in more than two years in April, data showed yester-
day. Exports fell by 5.5 per cent from March, the
biggest decline since a 6.5 per cent drop in January
2009.
Industrial production dips in Germany
German industrial production dropped by 0.6 per
cent in April, compared to the previous month.
Production was still up by almost 10 per cent year-
on-year, analysts at ING noted.
ALLISTER HEATH | CITY A.M.
Quarter per cent rise. Despite some concerning economic data, the economy is expanding, albeit modestly,
and creating jobs. The time for emergency low rates has passed, and inflationary pressures persist.
SIMON WARD | HENDERSON
Raise to one per cent. Higher inflation is becoming embedded: the value-added deflator, which excludes import
costs and taxes, climbed 2.4 per cent annualised in quarter one. Trend growth may be sub-two per cent.
GEORGE BUCKLEY | DEUTSCHE BANK
Raise by 0.25 per cent. Despite signs that the recovery has slowed, the combination of high inflation, gen-
erally rising output and highly accommodative monetary policy suggests that interest rates are too low.
GRAEME LEACH | INSTITUTE OF DIRECTORS
Hold. With the money supply and the economy so weak, raising interest rates is the last thing the Bank of
England should be doing. We have a short-term inflation problem and a medium term risk of deflation.
VICKY REDWOOD | CAPITAL ECONOMICS
Given the continued signs that the recovery is struggling, interest rates should be left on hold. Indeed, if
the data remains this weak, the case for re-starting quantitative easing will strengthen.
TREVOR WILLIAMS | LLOYDS TSB
Hold, though a rise will be necessary by year end. Encouraging net exports, but investment remains weak and
recovery is slowing. Modest pay settlements and weak broad money growth suggest inflation will slow.
HOWARD ARCHER | IHS GLOBAL INSIGHT
Unchanged interest rates are warranted given the economys current softness, serious concerns over the
consumer, and fiscal tightening. Pay remains muted and we see little risk of a wages-price spiral.
VICKY PRYCE | FTI CONSULTING
Hold. The IMF may have said that policy is about right but warned of downside risks. Economic data still
generally weak and forecasts being revised downwards. Only thing to watch is rising private sector wages.
JAMIE DANNHAUSER | LOMBARD STREET RESEARCH
Keep rates on hold. Sentiment surrounding the UK has become too bearish. Second quarter GDP could sur-
prise on the upside. That said, the big picture, of sluggish growth and limited inflation risks, has changed little.
CITY A.M. | SHADOW MPC STILL DIVIDED OVER INTEREST RATES
BRITONS life expectancy at birth has continued increasing, official data revealed yesterday. Male life expectancy jumped by 1.4 years
between 2003-05 and 2007-09, while female life expectancy was up 1.1 years. Life expectancy at birth was consistently highest in
Kensington and Chelsea, and lowest in parts of Glasgow, Hartlepool, Liverpool, and Blackburn.
Team Up, Get Cooking,
Build Better Lives

The Thomas Coram Foundation for Children (registered charity no. 312278) was established by Royal Charter in 1739. RedR UK is registered charity no. 1079752.
thelordmayorsappeal.org.uk/cook
020 7520 0425
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1079752.
BRITISH technology firm Smiths
Group has revealed strong sales and
profit growth, despite a sluggish per-
formance in its detection unit.
The airport scanner maker said
underlying sales were ahead of last
year in the 10 months to 28 May, driv-
en by growth in its John Crane busi-
ness unit.
But lower sales from its Smiths
Detection business, which makes X-ray
inspection and other security systems,
have offset sales performance.
The FTSE 100-listed company said it
expected the sales trend to continue
for the remainder of the year.
Smiths Group first warned it would
take a knock in sales last November,
due to a delay in large orders from gov-
ernment agencies.
At the time, the level of military
spending in the UK and elsewhere was
called into question as governments
looked to implement austerity pack-
ages.
Smiths said its John Crane business,
which provides products and services
for process industries, had built a
strong order book in the first 10
months of the year.
It said the unit had driven sustained
underlying sales growth, particularly
from the oil and gas markets.
The firm said its Smiths Medical
division, which supplies specialist
medical devices, had improved its
operating margins. However, it
warned that the squeeze on health-
care budgets in many markets left it
facing a tough trading environment.
When they warned about detec-
tion there might have been some
remaining hope that orders arrived
soon thereafter and helped the second
half out, RBS analyst Sandy Morris
said. I think we can say now thats
unlikely.
Medical was fine theres no bad
news, but theres no good news either.
Perhaps we were hoping for just a little
bit of momentum into the second
half, he added.
Smiths Group shares lost two per
cent to close at 11.77 yesterday.
Sales rise at
Smiths Group
BY RICHARD PARTINGTON
TECHNOLOGY

News
17 CITYA.M. 9 JUNE 2011
Beware the politics that surround the 50p tax
W
HAT do Sir Richard Branson,
the CBI, and pop sensation
of the moment Adele have
in common?
They have all denounced the 50p
income tax. Adele may have declared
herself Labour through and
through, but when Her Majestys
Customs and Excise demanded she
hand over half of the 16m she made
from her last album, she said she
wanted to get a gun and go on a shoot-
ing spree. A tax-and-spender mugged
by reality?
It shows how the tension over the
50p tax is mounting, as the tax inspec-
tors post their demands, and its
effects turn from rhetoric to reality.
It has completed its first year of
operation, and the mounting anger of
the well-off is matched by the praise
for it by the left wing commentariat,
publicly applauding the money it
appears to be raising (but secretly
pleased it is squeezing the rich).
The chancellor has made clear his
intention to abolish it in the long run,
but the politics are going to get more
intense. Labours tax unites against it
an unusual coalition of business
groups, pop stars, footballers and
entrepreneurs, but scrapping a tax on
the affluent is difficult politics for a
Conservative chancellor in an age of
austerity. But while the politics are dif-
ficult, the economics are easy.
The tax poses a major threat to our
global competitiveness and our
economy. It gives us the fourth high-
est personal income tax regime in the
EU, and far higher than any global
competitor including the US or
Australia.
Wealth managers told me last week
that many of their clients were mov-
ing their assets overseas to avoid the
tax, putting meat on the bones of the
claims by the Institute for Fiscal
Studies that it will cost the Treasury as
much in tax avoidance as it will raise.
The trouble for the chancellor is
that the money raised by the 50p tax
will be highly visible, while the effect
it has on inward investment, employ-
ment and tax avoidance more diffi-
cult to prove.
Much of the political appeal of the
tax is based on myth rather than real-
ity. It is seen as a tax on City bankers,
but actually over 70 per cent of the
people hit by it live outside the capital.
Many are small business people
who as soon as they do well find the
government taking more than half of
what they make. It is seen as detri-
mental only to the rich, but its wider
economic impact means even those
below the threshold suffer.
In political terms, the 50p tax has-
nt really barked yet, but the yelping is
getting louder. Just ask Adele.
Anthony Browne is a board member of
theCityUK anthony@anthonybrowne.org
THURSDAY VIEW
ANTHONY BROWNE
ANALYSIS l Smiths Group Plc
31 May 23May 16May 9May 7Jun
p
1,350
1,300
1,250
1,200
1,177
8 June
Oil and gas arm saves day
SMITHS Group, the last real con-
glomerate in the FTSE 100, has its
fingers in a lot of pies. Most
observers expect the group to be
split up at some point in the not too
distant future, but yesterday
investors will have welcomed the
safety in numbers. A strong per-
formance at the John Crane divi-
sion, which is heavily exposed to
booming oil and gas investment,
helped offset a weaker performance
at most of Smiths other divisions.
Investors were prepared for bad
news from its detection unit, after
the firm was forced to put out a
profit warning last month. Part of
the problem stems from a thin-look-
ing US military order book, but the
division has also been hurt by poor
execution (the arms former chief
executive has been given his march-
ing orders). With high fixed costs,
operating profit is sure to suffer.
The shares, which tumbled after
the profit warning, fell another two
per cent yesterday. We think that
could create a buying opportunity
for those investors who believe in
chief executive Philip Bowmans
turnaround strategy.
Since he arrived in 2008,
Bowman has consistently pursued
higher margins, often at the
expense of orders, to great effect.
For shareholders that buy now
ahead of an eventual demerger, the
gains could be considerable.
BOTTOMLINE
Analysis by David Crow
RECORD losses incurred by reinsur-
ance firms from Japans earthquake
in March are causing the cost of rein-
suring such disasters in the country
to soar, Swiss Re said yesterday.
Rates on coverage of earthquake
exposure in Japan where quakes are
felt on average once every five min-
utes have risen up to 60 per cent
since the dual catastrophe in March.
Typical rate increases we have
seen on 1 April are between 20 and
50, or 20 and 60 per cent, Matthias
Weber, head of property and specialty
reinsurance at Swiss Re, told a confer-
ence in New York.
Reinsurance rates on other types of
disaster in Japan had also risen about
five to 10 per cent, he added.
Japans reinsurance policies are
renewed in April so have been highly
responsive to the disaster.
Swiss Re, the worlds second-
biggest reinsurer of other insurance
companies coverage, abandoned its
full-year profit target for 2011 after
incurring $2.3bn (1.4bn) in pre-tax
catastrophe losses in the first quarter
of the year.
The Japan crisis alone caused it
$1.2bn of losses, while the worlds
biggest reinsurer, Munich Re, estimat-
ed the catastrophe would cost it
1.5bn.
The magnitude 9.0 earthquake on
11 March struck the northeast coast
of Japans main island, causing an
estimated $30bn of insured losses
and a meltdown at the Fukushima
Daiichi nuclear plant.
Swiss Re sees
rates rocket
after Japan
US BANK Citigroup has agreed to
sell a portfolio of private equity
assets to Axa Private Equity for
$1.7bn (1bn), the latest move by the
lender to unload non-core assets.
For Paris-based Axa, the deal is
part of a series of acquisitions of pri-
vate equity investments originally
owned by other investors, including
the purchase of a $1.9bn portfolio
from Bank of America in April 2010.
The portfolio comprises 207 stakes
in various buyout funds as well as
some direct stakes in companies.
Citi had looked to offload some of
its private equity assets following its
$45bn taxpayer bailout.
The New York-based lender is also
seeking to focus on its core banking
business.
This sale marks the completion
of a significant share of Citi
Holdings proprietary private equity
investments and demonstrates the
progress the Citi Holdings team is
making in reducing non-core assets
on our balance sheet, said Mark
Mason, chief operating officer of
Citi Holdings, the division that
groups the US banks non-core hold-
ings.
The portfolio does not include pri-
vate equity funds that Citigroup
manages or previously managed.
US CANDY maker Hershey has held
discussions with former Cadbury
head Todd Stitzer about taking a seat
on its board, it is understood.
Stitzer, who left the British confec-
tioner in 2010 after it was taken over
by Kraft Foods, is also being consid-
ered for the chief executive job at
Hershey, though interim boss John
Bilbrey is said to be the most likely
candidate.
Bilbrey was named interim chief
executive after David West
announced last month that he was
leaving Hershey for the top job at Del
Monte.
Hersheys board and the commit-
tee handling the chief executive
search have meetings scheduled for
next week.
Hershey said it was committed to
conducting an effective, expeditious
and confidential search.
Citi sells 1bn
in private equity
assets to Axa
Hershey eyes ex-Cadbury
boss Stitzer for its board
Todd Stitzer left Cadbury in 2010 after it was taken over by Kraft Picture: REUTERS
BY ALISON LOCK
INSURANCE

PRIVATE EQUITY

News
18 CITYA.M. 9 JUNE 2011
BY HARRY BANKS
CONSUMER

ANALYSIS l Swiss Re
31 May 23May 16May 9May 7Jun
CHF
56
54
52
50
48
49.02
8 June
News
CITYA.M. 9 JUNE 2011 19
Speechly Bircham
The City law firm has appointed Meriel
Bennett as a partner in its projects
team. Bennett, who replaces Andrew
Walsh, spent the past five years as a
partner at Berwin Leighton Paisner,
where she advised clients on social
infrastructure PPP and PFI projects.
Jefferies
The investment bank has appointed
Naomi Kumagai, Makarim Salman and
Masahiro Wakasugi as senior equity
research analysts, based in Tokyo, to
cover the healthcare, financial services
and insurance, and technology sectors
respectively. Kumagai and Salaman join
from Macquarie Capital Securities and
Wakasugi joins from Alliance Bernstein.
Corac
Mark Crawford has become group
managing director of the research
group. He has resigned his role as com-
pany secretary, replaced by head of
finance Stephen Harrow, but will retain
the position of chief financial officer.
Colliers International
The real estate advisory firm has
expanded its retail out of town team by
appointing Laurence Edwards, previous-
ly head of out of town retail at Knight
Frank, as a director to specialise in out
of town retail development.
Street Corporation
Isabelle Brancart has joined the financial
services groups subsidiary State Street
as head of sales and relationship man-
agement for Switzerland. Brancart joins
from Deutsche Bank, where she man-
aged the Securities Services Sales
department for Western Europe in the
Global Transaction Banking division.
Beachcroft
The law firm has appointed six new part-
ners, taking its total partners to 161:
Antonia Ford, Joanna Keogh, Simon
Curtis, Andrew Baker, Tom Watkinson
and Sean Doherty. The firm has also pro-
moted Craig Dickson to director in the
claims solutions team in Birmingham.
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
Growth worries hit
Wall St for sixth day
U
S STOCKS extended losses for
the sixth straight day yester-
day as investors worried that a
slowing economy could deep-
en the markets retreat.
The latest evidence of a slowdown
came in the Federal Reserves Beige
Book, which gives an anecdotal
report on the economy. It reinforced
Fed chief Ben Bernankes bearish
assessment on growth delivered late
on Tuesday.
The markets mood soured when
Bernanke gave no hint that the cen-
tral bank would offer a third round
of stimulus to an economy losing
steam. The Beige Book said costlier
food and energy prices as well as sup-
ply disruptions stemming from
Japans earthquake were taking a
toll.
The S&P 500 was down about six
per cent from its 2011 intraday high
hit on 2 May, but was still up 1.7 per
cent for the year. Stocks have come
under pressure recently due to a
slew of weak economic data, espe-
cially in the labour market.
Investors are re-pricing the slow-
down after Bernanke crystallised it,
said Jason L Ware, senior equity
research and trading analyst at
Albion Financial Group in Salt Lake
City, Utah.
On top of that, the market was
hoping for an indication that there
may be another round of stimulus
but clearly, thats not what they got.
The Feds $600bn (366bn) second
round of stimulus, expected to end
this month, has been a catalyst for
the stock markets advance.
Many of the days biggest decliners
were US-traded Chinese companies
after Interactive Brokers Group
banned clients from borrowing
money to buy some Chinese stocks.
New York-listed shares of Renren
fell 13.6 per cent to $10.51 and Baidu
lost 3.3 per cent to $120.67.
Mortgage insurers shares also fell
after MGIC Investment reported dis-
appointing monthly operating statis-
tics.
Shares of MGIC Investment, the
biggest mortgage insurer to Fannie
Mae and Freddie Mac, fell 20.2 per
cent to $5.80.
The Dow Jones industrial average
dropped 21.87 points, or 0.18 per
cent, to 12,048.94. The Standard &
Poors 500 Index lost 5.38 points, or
0.42 per cent, to 1,279.56. The
Nasdaq Composite Index fell 26.18
points, or 0.97 per cent, to 2,675.38.
I think 1,250 is a key level (on the
S&P) and, if we get there, likely to
provide support for the market, bar-
ring any further erosion in the
underlying economic data, Ware
said.
M
INING stocks, dented by
heightened investor con-
cerns about the strength of
the global economic recov-
ery, pushed Britains top shares
below a key technical level yester-
day, a bearish signal for the index.
The FTSE 100 closed down 55.76
points, or one per cent, at 5,808.89,
having breached its 200-day mov-
ing average of 5,815.
US Federal Reserve chairman Ben
Bernanke on Tuesday sent a strong
signal that no new stimulus meas-
ures were on the cards, despite a
recent run of gloomy data from
the worlds biggest economy.
Sentiment was further damp-
ened by a threat to Britains top-
notch sovereign credit rating by
ratings agency Moodys.
I think a few people were hop-
ing, considering Bernanke rarely
disappoints the market, that he
would be fairly reactive (to last
weeks poor US jobs data) but we
didnt get that last night, Joshua
Raymond, market strategist at City
Index, said.
Theres also the Moodys warn-
ing although in my opinion, its
nothing new... (It) has said before
the triple-A rating is liable to
change. Maybe the moves on the
market only really emphasise the
sensitivity amongst traders at the
moment.
US blue chips were flat by
Londons close.
Risk sensitive miners knocked
the most points off the FTSE 100
index, falling in tandem with met-
als prices.
Chilean copper miner
Antofagasta led the market lower,
off five per cent, after it said the
ramp-up of its Esperanza copper
mine would be completed in the
second half of the year, having
taken longer than initially
planned.
Integrated oil stocks pared earli-
er losses, with Royal Dutch Shell
up 0.1 per cent, as crude rose $1.77
to $100.86 after OPEC failed to
reach a deal to increase output,
triggering fears over supply later
this year.
Banks were stronger after the
Treasury said they would be
allowed to reduce their use of its
credit guarantee scheme, a move
which finance minister George
Osborne said indicated the sector
is clearly on the mend.
Lloyds Banking Group was the
star blue-chip performer, up 2.3
per cent, after the bank sold its
truck leasing company Hill Hire to
American group Ryder System Inc
for 151m.
This will... be seen as a positive
as (its) non-core asset sale is now
underway and this will in turn
improve the share price perform-
ance and build back up its capital
ratios, Atif Latif, director of trad-
ing at Guardian Stockbrokers, said.
Fundamentally we remain buy-
ers on Lloyds due to the recent
underperformance.
Barclays firmed 0.2 per cent,
although weakness was seen else-
where in the sector. Royal Bank of
Scotland shed 0.1 per cent, while
HSBC and Standard Chartered both
dropped 1.1 per cent.
Associated British Foods and
Johnson Matthey fell after going
ex-dividend.
On the second line, British pubs
group Punch Taverns added 6.8
percent after it reported a sharp
rise in sales at its Spirit managed
division and said it was on track to
complete a demerger by the end of
the summer.
Weak miners dip FTSE below
key 200-day moving average
THELONDON
REPORT
THENEW YORK
REPORT
ANALYSIS l FTSE 100
6,100
5,900
5,700
31 May 23May 16May 9May 7Jun
5808.89
8 June
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l NESTLE
55
54
53
52
51
50
49
48
14Feb 21 Apr 28May 7Mar 1 Jun
CHF
53.30
8 Jun
NESTLE
Nomura rates the company reduce and has a target price of CHF49
(35.83). The broker notes that the company is the best in class as it seeks
to develop close relationships with farmers and superior options to many
food manufacturers in terms of procurement. However, Nomura thinks
Nestle needs to plan for the long-long term and will require increased
investment.
ANALYSIS l J SAINSBURY
370
360
350
340
320
14Feb 21 Apr 28May 7Mar 1 Jun
p
331.40
8 Jun
J SAINSBURY
UBS rates the supermarket a buy and has a target price of 440p. The
broker expects growth in like-for-like sales including fuel to remain robust
when the firm reports quarterly figures on 15 June, thanks to the bank hol-
idays and recent good weather, but warns that underlying trading condi-
tions remain tough. Rising fuel price is the biggest single factor
contributing to an overall slowdown in the UK grocery sector, it adds.
143.20
8 Jun
ANALYSIS l ROCHE
150
145
140
135
130
125
14Feb 21 Apr 28May 7Mar 1 Jun
CHF
ROCHE
Goldman Sachs rates the healthcare company a buy and has added the
group to its conviction buy list with a target price of CHF185 (135.27).
The broker sees potential for an exciting pipeline as Roche shifts economics
within its portfolio, though market competitors are finding it hard to make
meaningful inroads. The brokers recent meeting with management has
convinced it of real potential for sustainable revenue growth.
Aberdeen Life
Aberdeen Asset Management Life and Pensions,
the subsidiary of Aberdeen Asset Management,
has appointed Helen Webster as chief operating
officer of the firm, which manages 1.9bn of
assets for pension scheme and insurance clients.
Webster joins from Aegon Asset Management,
where she was responsible for product develop-
ment and distribution, as well as a director of
the firms offshore funds business. Prior to that,
Webster worked at Scottish Equitable.
20
Wealth Management | Funds
CITYA.M. 9 JUNE 2011
IN FOCUS | TOP 10 EMERGING MARKET BOND FUNDS SOURCE:MORNINGSTAR
UK REGISTERED 6/6/08 LATEST LATEST DOMICILE PORTFOLIO MANAGEMENT
INVESTMENT FUNDS 7/6/11 SHARE PORTFOLIO MANAGER(S) GROUP
GLOBAL EM BOND FUNDS PERFORM. PRICE SIZE
CHANGE (%) () (M)
Amundi Funds EmgMarkets Debt AUC 67.63 28.56 76.13 Luxembourg Thomas Delabre Amundi
BlueBay Emerging Market Select Bd B 63.44 153.01 715.85 Luxembourg David Dowsett BlueBay Asset Management
HSBC GIF Glbl Emerging Markets Bd P 60.37 19.4 913.54 Luxembourg Peter Marber HSBC Investment Funds (Lux)
Dexia Bonds Emerging Markets CAcc 60.04 1,733.67 261.57 Luxembourg Koen Van De Maele Dexia Asset Management
Skandia Emerging Market Debt A1 Acc 57.82 18.91 310.08 Ireland Stone Harbor EMD Team Skandia Fund Management (Ireland)
CapInt EMDebt A 57.49 13.6 499.55 Luxembourg Capital International
MFS Meridian Emerg Mkts Dbt A2 USD 57.22 17.35 1,459.69 Luxembourg Ward Brown MFS Meridian Funds
Parvest Bond World Emerging C 56.56 349.02 102.13 Luxembourg Sergio Trigo Paz BNPParibas
JB BF Emerging USD B 55.94 349.86 75.7 Luxembourg Enzo Puntillo Swiss & Global Asset Management
Aberdeen Global Emerging Markets Bond A2 55.78 33.5 584.17 Luxembourg Management Team Aberdeen Asset Managers (Lux)
Inflation can
be a boon for
debt buyers
Local currency denominated bonds are
useful for investors seeking exposure to
emerging markets, writes Craig Drake
A
CCORDING to a report
released yesterday by the
World Bank, too many of the
worlds fast-growing develop-
ing countries are deploying crisis-
fighting policies even though their
economies have recovered from the
recession, exacerbating inflation.
Economic growth in developing
countries will slow to 6.3 per cent in
2011 from 7.3 per cent in 2010. China
will continue to set the pace, expand-
ing 9.3 per cent this year and 8.7 per
cent in 2012.
Developing nations also need
more flexible currencies, the World
Banks Global Economic Prospects
report said. At the release of the
report, Ardo Hansson, the World
Banks chief economist for China,
said that the government of the
Peoples Republic is very unlikely
to meet its 4 per cent inflation target
for the year, with the rate set to stay
at about 5 per cent for a few more
months.
With China struggling to bring
down its levels of inflation which
have been on a steady ascent since
the March 1999 record low of -2.2 per
cent it is likely that the Peoples
Republic, along with the central gov-
ernments of other emerging mar-
kets, will appreciate its currency in
order to try to compensate for infla-
tion.
As the currencies of the majority
of emerging market economies are
heavily controlled, the best way for
investors to get exposure to currency
appreciation is through bonds
denominated in local currency.
Should this inflationary trend con-
tinue, it will carry on boosting
emerging market debt funds.
According to Robert
Stewart, managing direc-
tor of JP Morgan Asset
Management, Debt
funds are a very good
way of gaining from
emerging market infla-
tion. One of the ways
that central banks in
emerging markets are
dealing with inflation
is through currency
appreciation. A num-
ber of finance ministers
in EMs are happy to appre-
ciate their currencies to
fight imported com-
modity price increases and its sensi-
ble monetary policy.
A WORD OF CAUTION
Mark Koyn, CEO Asia of RCM Allianz
Global Investors, urges some caution
as further emerging market curren-
cy appreciation is not guaranteed.
Still, to date, central governments
have been quick to step in at times of
a drop off in growth, which suggests
the opposite policy. From a macro
and policy perspective, the main risk
relates to the sustainability of
Chinas economic growth, Kyon
says, adding, a significant growth
shortfall would put pressure on the
authorities to limit the currency
appreciation, and in the worst case
the government could consider
devaluation, should real economic
growth fall below 7 per cent annu-
alised. Chinas government has been
taking steps for some time and
implementing policies to avoid such
a negative scenario.
Blanca Koenig, fixed income
strategist for BlackRocks iShares
business, points out that exchange-
traded funds (ETF) also give investors
exposure to EM currency apprecia-
tion: The bonds will benefit from
currency appreciation, which will
increase the price of the ETF and
therefore benefit the investor. Bond
prices will generally benefit from
this increased demand and the cur-
rency will likely appreciate. Koenig
added: Currently we see a lot of pos-
itive momentum with clients look-
ing to invest in local currency EM
bonds.
CORRECT TIMING
Alan Higgins, head of investment
strategy UK at Coutts, says that
local emerging market debt
is an attractive asset class,
providing investors pay
attention to the strength
of their native currency.
Returns on local emerg-
ing market debt are heavi-
ly determined by
currency and in the cur-
rent environment this is a
positive, as we expect the
major emerging market
currencies to appreciate
versus developed market
currencies. Investing in
emerging market debt can be com-
plicated by investing from a non-US
dollar base, like sterling, as most
emerging market currencies are
heavily correlated with the dollar,
says Higgins. Returns can therefore
be undermined by the strength of
sterling versus the dollar and this
must be taken into account when
making investment decisions for UK
and other non-US dollar-denominat-
ed clients.
Its not too late to profit from gold
Central banks across the world have been buying gold
as a hedge against their inationary policies. For a
change, they are ahead of the curve, says Philip Salter
G
OLD is not the bubble that many
fear. Its price has risen on the back
of fundamentals that have not gone
away. Until these threats dissipate,
gold will continue to go up.
WAYS AND MEANS
Marcus Grubb of the World Gold Council
explains: Physical ownership can mean
holding gold bars and coins, through to
100 per cent physical backed online
accounts and physical gold exchange-trad-
ed funds (ETF). Mining stocks offer lever-
aged exposure to the gold price, and there
is a wide range of gold futures and options
that again bring gold price exposure, but
without physical ownership.
If you are good at picking winners min-
ing stocks might suit. This offers massive
upside potential, but African Barrick
Golds drop yesterday following
Tanzanias hint that they might bring in a
super profit tax on minerals demon-
strates the risks. Funds that invest in a
number of mining companies can help
mitigate this risk, though. Axel Lomholt of
iShares argues that a physically backed
exchange-traded commodity (ETC) pro-
vides direct exposure to the daily price
movements of gold with one of the high-
est levels of liquidity and transparency.
For those with a longer-term outlook, own-
ing physical gold is the best option, either
on your property if you have adequate
security, or through a company like
BullionVault that allocates it on your
behalf.
DOUBLE, DOUBLE
Mick Gilligan of Killik & Co notes: Since
bottoming out at around $250/oz in 1999-
2001, the price of gold has increased more
than five-fold to $1,390/oz. This rise is why
many are calling the current price of gold
a bubble. However, Gilligan suggests that
adjusted for inflation and against other
assets, the gold price remains well below
its 1980 peak. As such, he recommends
investors have an allocation of gold in
their investment portfolios.
Carl Astorri, global head of economics
and asset strategy at Coutts, explains:
Get it while its hot
Picture: REUTERS
Wealth Management
21

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Using the 1970s gold-market bubble and
the 1990s tech equity bubble as templates
suggests that gold has not yet broken away
from fundamentals and become a bubble.
The combination of secular trends, his-
toric investor behaviour, incremental
demand drivers from emerging markets,
the move away from the US dollar and
demand for a hedge against fiat currency
weakness would all support further gains
for gold.
Daniel Fisher, CEO of Physical Gold,
thinks that over the next three to five
years the main drivers of a rising gold
price will come from terror threats, fur-
ther political unrest in north Africa, spi-
ralling national debt in Europe and the
limited supply of gold. Adrian Ash of
BullionVault argues that current senti-
ment would only move into irrational exu-
berance if it kept rising after monetary
policy switched from weak to strong. Ash
adds: Theres no fear of rates rising above
inflation any time soon, neither in the UK
or US. The long-term move into gold may
have barely begun.
TOIL AND TROUBLE
For those predicting another crash, the fis-
sures that could turn into cracks are visi-
ble for all to see. The Eurozone and US
debt crises remain unresolved. Both could
head the way of the Japanese monetary
experiment, which itself will likely jolt out
of its deflationary slumber with unman-
ageable inflation, possibly of the hyper
variety. Even China, that great hope for the
penurious developed nations, might be
busy inflating an almighty bubble. In
Dylan Grices latest Popular Delusions
note, he suggests that Chinas economy is
being both stoked up and suppressed.
Grice concludes: While we cant predict
where complex systems will go, we know
that the longer their volatility is artificial-
ly suppressed, the more emphatic will be
its release when it does come. It might be
that all these economies muddle through,
but if they dont, gold at $1,500 will look
like a bargain.
CONTRARIANS AND CENTRAL BANKERS
Ironically, despite the column inches
devoted to the subject, most individuals
and institutional investors remain reluc-
tant to buy gold. Perhaps they think that
they have missed their chance. Virtually
all US pension funds still hold less than 0.3
per cent of assets in gold and central banks
in emerging markets are still massively
underweight gold. But now the central
bankers are buying. And so, the worlds
most sober people are joining the contrar-
ians, crackpots and historians of booms
and busts, who were busy buying gold over
the last decade. In the future, gold might
become a bubble, but for those that have
no exposure to it, it is not too late to buy.
PERSONAL FINANCE NEWS
BY PHILIP SALTER
DISTRESSING FINANCES
According to R3, the trade body for
insolvency professionals, the number of
people experiencing financial distress
has increased to the highest level
recorded. 8m people are due to go into
their overdraft this month, with 2m
believing that they will go into an unau-
thorised overdraft position. The findings
also show that 6m people are currently
behind with some of their bills and pay-
ments a jump of 2m over the last
quarter.
ONE SMALL STEP FOR THE BOE
Looking at base rate changes over the
last fourteen years, Lloyds TSB says his-
tory shows small rate rises but in quick
succession. Reductions in the Bank of
England base rate have ranged from
0.25 per cent to 1.50 per cent. However,
during the same period, base rates only
ever rose by 0.25 per cent at any one
time. Increases usually came in quick
succession, with several rises over a
short space of time.
AN INTERNATIONAL PLATFORM
Barclays Stockbrokers has added five
new markets to its International Trader
platform. Investors can now access
markets in Australia, Hong Kong,
Singapore, Denmark and Norway. The
platform now gives investors access to
over 12,000 stocks on 26 major global
exchanges across 18 international
markets.
BARING ALL
Baring Asset Management has followed
up on the recent launch of its iPhone
and iPad fund prices app with a
Blackberry-friendly version. This enables
retail and professional investors to keep
track of Barings fund prices on the go.
IN VINO LUCRUM
Fine wine merchant Bordeaux Index
says wine prices have rebounded. Wine
prices climbed nearly 1.25 percent in
May. Older prime vintages were much in
demand, with Margaux 96 and Mouton
86 leading the way.
LON GD ONCE FIX AM...........1535.50 -12.90
SILVER LDN FIX AM ..................36.45 -0.22
MAPLE LEAF 1 OZ ....................50.00 1.00
LON PLATINUM AM................1818.00 -2.00
LON PALLADIUM AM...............802.00 6.00
ALUMINIUM CASH .................2664.00 37.50
COPPER CASH ......................9091.50 -5.50
LEAD CASH...........................2505.00 35.00
NICKEL CASH......................22580.00 -25.00
TIN CASH.............................25800.00 -200.00
ZINC CASH ............................2251.00 32.50
BRENT SPOT INDEX................115.52 0.60
SOYA .....................................1394.00 10.25
COCOA..................................2891.00 28.00
COFFEE...................................263.00 2.50
KRUG.....................................1593.40 -1.00
WHEAT ....................................189.50 4.62
AIR LIQUIDE........................................92.50 -1.35 100.65 78.81
ALLIANZ..............................................91.79 -0.84 108.85 77.48
ALSTOM..............................................41.29 -0.64 45.32 30.78
ANHEUS-BUSCH INBEV ....................40.14 -0.20 46.33 38.37
ARCELORMITTAL...............................22.20 -0.16 28.55 20.26
AXA......................................................14.61 -0.07 16.16 10.88
BANCO SANTANDER...........................7.86 -0.11 10.23 7.00
BASF SE..............................................62.24 -0.36 70.22 40.74
BAYER.................................................55.33 -0.71 59.44 43.27
BBVA......................................................7.74 -0.09 10.71 6.75
BMW....................................................61.00 0.68 65.49 37.31
BNP PARIBAS.....................................52.21 -0.43 59.93 40.81
CARREFOUR ......................................29.49 -0.59 41.28 29.31
CREDIT AGRICOLE............................10.23 -0.10 12.92 7.87
CRH PLC .............................................14.20 -0.26 19.92 11.51
DAIMLER.............................................47.34 0.24 59.09 37.03
DANONE..............................................49.82 -0.34 51.33 41.00
DEUTSCHE BANK..............................39.63 -0.57 51.61 35.93
DEUTSCHE BOERSE .........................53.05 -0.45 62.48 46.33
DEUTSCHE TELEKOM.......................10.03 -0.06 11.38 8.97
E.ON.....................................................19.19 0.19 25.54 18.25
ENEL......................................................4.55 -0.07 4.86 3.42
ENI .......................................................16.04 -0.04 18.66 14.59
FRANCE TELECOM............................15.26 -0.04 17.45 14.01
GDF SUEZ ...........................................24.43 -0.12 30.05 22.64
GENERALI ASS...................................14.63 -0.25 17.05 13.31
IBERDROLA..........................................6.07 0.00 6.50 4.38
ING GROEP CVA...................................8.06 -0.08 9.50 5.86
INTESA SANPAOLO.............................1.79 -0.02 2.53 1.65
KON.PHILIPS ELECTR.......................18.10 -0.33 26.87 18.07
L'OREAL..............................................84.52 -0.91 90.00 74.50
LVMH..................................................116.15 -1.45 129.05 84.85
MUNICH RE.......................................102.95 -0.70 126.00 98.38
NOKIA....................................................4.29 -0.19 8.49 4.25
REPSOL YPF.......................................22.25 -0.03 24.90 15.67
RWE.....................................................38.63 -0.07 58.21 37.44
SAINT-GOBAIN...................................43.69 -0.43 47.64 27.81
SANOFI ................................................52.33 -0.09 56.50 44.01
SAP......................................................41.73 -0.47 46.15 34.13
SCHNEIDER ELECTRIC ...................110.70 -1.50 123.65 79.70
SIEMENS .............................................89.48 -0.84 99.39 70.02
SOCIETE GENERALE.........................39.79 -0.56 52.70 29.71
TELECOM ITALIA..................................0.96 -0.01 1.16 0.88
TELEFONICA ......................................16.38 -0.10 19.69 14.83
TOTAL..................................................38.21 -0.08 44.55 35.66
UNIBAIL-RODAMCO SE...................151.35 -0.80 159.30 108.66
UNICREDIT............................................1.50 -0.03 2.24 1.46
UNILEVER CVA...................................22.24 -0.18 24.11 20.68
VINCI ....................................................42.05 -0.34 45.48 33.01
VIVENDI ...............................................18.62 -0.27 22.07 16.25
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5808.89 -55.76 -0.95
FTSE 250 INDEX. . . . . . . . 11870.92 -137.87 -1.15
FTSE UK ALL SHARE . . . . 3034.52 -29.51 -0.96
FTSE AIM ALL SH . . . . . . . . 878.46 -3.44 -0.39
DOWJONES INDUS 30 . . 12048.94 -21.87 -0.18
S&P 500 . . . . . . . . . . . . . . . 1279.56 -5.38 -0.42
NASDAQ COMPOSITE . . . 2675.38 -26.18 -0.97
FTSEUROFIRST 300 . . . . . 1094.33 -9.72 -0.88
NIKKEI 225 AVERAGE. . . . 9449.46 6.51 0.07
DAX 30 PERFORMANCE. . 7060.23 -43.02 -0.61
CAC 40 . . . . . . . . . . . . . . . . 3837.98 -33.94 -0.88
SHANGHAI SE INDEX . . . . 2750.29 5.99 0.22
HANG SENG. . . . . . . . . . . 22661.63 -207.04 -0.91
S&P/ASX 20 INDEX . . . . . . 2725.60 -20.60 -0.75
ASX ALL ORDINARIES . . . 4608.70 -32.40 -0.70
BOVESPA SAO PAOLO. . 63032.97 -184.88 -0.29
ISEQ OVERALL INDEX . . . 2895.10 -29.66 -1.01
STI . . . . . . . . . . . . . . . . . . . . 3102.98 -12.97 -0.42
IGBM. . . . . . . . . . . . . . . . . . 1026.73 -9.16 -0.88
SWISS MARKET INDEX. . . 6256.86 -73.79 -1.17
Price Chg %chg
3M........................................................90.91 0.06 97.95 72.72
ABBOTT LABS ...................................51.53 0.15 54.24 44.59
ALCOA ................................................15.41 -0.28 18.47 9.81
ALTRIA GROUP..................................27.29 0.19 28.13 19.53
AMAZON.COM..................................188.05 0.50 206.39 105.80
AMERICAN EXPRESS........................48.10 -0.79 51.97 37.13
AMGEN INC.........................................58.95 0.12 61.53 50.34
APPLE...............................................332.24 0.20 364.90 236.78
AT&T....................................................30.34 0.03 31.94 23.88
BANK OF AMERICA...........................10.54 -0.11 16.10 10.50
BERKSHIRE HATAW B.......................74.33 -0.53 87.65 69.61
BOEING CO.........................................73.85 -0.33 80.65 59.48
BRISTOL MYERS SQUI ......................27.92 -0.07 28.99 23.53
CATERPILLAR....................................98.04 -1.84 116.55 54.89
CHEVRON...........................................99.95 0.48 109.94 66.83
CISCO SYSTEMS................................15.30 -0.21 26.00 15.21
CITIGROUP.........................................36.81 -0.77 51.50 36.20
COCA-COLA.......................................65.40 0.20 68.77 49.47
COLGATE PALMOLIVE......................84.21 0.32 87.58 73.12
CONOCOPHILLIPS.............................71.46 0.59 81.80 48.06
DU PONT(EI) DE NMR........................49.74 -0.55 57.00 33.73
EMC CORP..........................................26.99 -0.07 28.73 17.72
EXXON MOBIL....................................80.76 0.76 88.23 55.94
GENERAL ELECTRIC.........................18.51 0.03 21.65 13.75
GOLDMAN SACHS GRP..................131.56 -1.47 175.34 129.50
GOOGLE A........................................519.17 0.14 642.96 433.63
HEWLETT PACKARD.........................35.36 -0.21 49.39 35.20
HOME DEPOT.....................................34.10 -0.23 39.38 26.62
IBM.....................................................164.34 0.65 173.54 120.61
INTEL CORP .......................................21.82 -0.24 23.96 17.60
J.P.MORGAN CHASE.........................40.39 -0.33 48.36 35.16
JOHNSON & JOHNSON.....................66.14 0.64 67.37 56.86
KRAFT FOODS A................................34.06 0.02 35.44 27.59
MC DONALD'S CORP ........................81.15 0.01 83.08 65.31
MERCK AND CO. NEW......................35.79 0.22 37.68 31.06
MICROSOFT........................................23.94 -0.12 29.46 22.73
OCCID. PETROLEUM.......................102.49 1.03 117.89 72.13
ORACLE CORP...................................31.25 -0.59 36.50 21.24
PEPSICO.............................................68.84 -0.09 71.89 60.32
PFIZER ................................................20.68 -0.06 21.45 14.00
PHILIP MORRIS INTL .........................68.04 0.23 71.75 42.94
PROCTER AND GAMBLE ..................64.85 -0.21 67.72 56.57
QUALCOMM INC ................................56.30 -0.21 59.84 31.63
SCHLUMBERGER ..............................83.73 0.85 95.64 52.91
TRAVELERS CIES..............................60.69 -0.54 64.17 47.77
UNITED TECHNOLOGIE ....................83.04 -0.21 90.67 62.88
VERIZON COMMS ..............................35.90 0.52 38.95 25.30
WAL-MART STORES..........................53.69 -0.14 57.90 47.77
WALT DISNEY CO ..............................39.23 -0.12 44.34 30.72
WELLS FARGO & CO.........................25.36 -0.41 34.25 23.02
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 ............................0.545 0.00
LIBOR Euro - overnight ..................0.892 0.00
LIBOR Euro - 12 months ................2.106 0.00
LIBOR USD - overnight...................0.126 0.00
LIBOR USD - 12 months.................0.725 0.00
Halifax mortgage rate .....................3.500 0.00
Euro Base Rate ...............................1.250 0.00
Finance house base rate................1.000 0.00
US Fed funds...................................0.250 0.00
US long bond yield .........................4.020 0.03
European repo rate.........................1.039 0.15
Euro Euribor ....................................1.077 0.05
The vix index ...................................18.13 0.06
The baltic dry index ........................1.456 -0.02
Markit iBoxx...................................219.89 -0.71
Markit iTraxx....................................95.06 0.00
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
/$ 1.4590 0.0098
/ 0.8900 0.0035
/ 116.45 1.1050
/ 1.1237 0.0046
/$ 1.6391 0.0047
/ 130.84 0.8789
FTSE 100
5808.89
-55.76
FTSE 250
11870.92
-137.87
FTSE ALLSHARE
3034.52
-29.51
DOW
12048.94
-21.87
NASDAQ
2675.38
-26.18
S&P 500
1279.56
-5.38
Rexam . . . . . . . . . . . .389.2 -6.3 400.0 290.4
RPC Group . . . . . . . .339.0 -2.8 361.1 192.3
Smiths Group . . . . .1177.0 -24.0 1429.0 1021.0
Brown (N.) Group . . .274.9 -1.1 311.2 221.0
Carpetright . . . . . . . . .726.5 -12.5 835.5 631.0
Debenhams . . . . . . . . .69.4 -1.1 77.4 53.0
Dignity . . . . . . . . . . . .780.0 -5.0 795.0 624.5
Dixons Retail . . . . . . .19.3 -0.1 28.5 11.8
DunelmGroup . . . . . .464.0 6.0 550.0 325.3
Halfords Group . . . . .397.8 -3.9 550.0 348.2
Home Retail Group . .202.3 -6.2 244.5 188.5
Inchcape . . . . . . . . . .386.5 -3.1 414.0 237.1
JD Sports Fashion . .979.5 -20.5 1005.0 683.0
Kesa Electricals . . . .142.7 -1.4 174.0 99.2
Kingfisher . . . . . . . . .273.9 -4.2 287.1 198.5
Marks & Spencer G . .371.2 -7.3 427.5 327.2
Mothercare . . . . . . . .410.2 -10.6 627.5 382.0
Next . . . . . . . . . . . . .2258.0 -14.0 2326.0 1868.0
Sports Direct Int . . . .226.7 -1.0 234.1 94.2
WH Smith . . . . . . . . . .484.9 0.8 523.0 398.2
Smith & Nephew . . . .657.5 -5.0 742.0 537.5
Synergy Health . . . . .908.0 -17.0 948.0 618.0
Barratt Developme . .106.2 -2.0 119.0 70.1
Yule Catto & Co . . . . .220.7 -4.8 240.5 112.7
Balfour Beatty . . . . . .304.5 -2.2 357.3 229.8
Keller Group . . . . . . .519.0 -1.5 698.5 513.0
Kier Group . . . . . . . .1285.0 -15.0 1418.0 886.5
Drax Group . . . . . . . .482.6 0.8 494.9 337.6
Scottish & Southe . .1383.0 -8.0 1397.0 1062.0
Domino Printing S . .671.0 0.5 705.0 386.0
Halma . . . . . . . . . . . . .390.3 -2.9 395.8 249.5
Laird . . . . . . . . . . . . . .134.6 0.6 179.0 98.8
Morgan Crucible C . .300.3 -3.7 333.0 174.2
Renishaw . . . . . . . . .1713.0 -4.0 1819.0 683.0
Spectris . . . . . . . . . .1505.0 -28.0 1575.0 740.5
Aberforth Smaller . . .710.5 -2.5 713.0 498.0
Alliance Trust . . . . . .375.0 -2.0 385.0 293.5
Bankers Inv Trust . . .419.9 -2.1 428.0 337.0
BH Global Ltd. GB .1098.0 1.0 1174.0 1058.0
BH Global Ltd. US . . . .10.8 0.0 11.6 10.4
BH Macro Ltd. EUR . . .16.9 -0.1 17.2 15.8
BH Macro Ltd. GBP 1757.0 4.0 1780.0 1630.0
BH Macro Ltd. USD . . .16.8 -0.1 17.1 15.8
BlackRock World M .748.5 -13.0 815.5 533.0
BlueCrest AllBlue . . .174.9 -0.1 176.2 161.6
British Assets Tr . . . .135.5 -2.4 140.5 105.0
British Empire Se . . .529.0 -4.0 533.0 404.1
Caledonia Investm .1762.0 -17.0 1928.0 1539.0
City of London In . . .298.0 -3.0 303.2 235.0
Dexion Absolute L . .147.5 -0.5 151.0 131.2
Edinburgh Dragon . .241.5 -1.3 262.1 201.1
Edinburgh Inv Tru . . .486.0 -1.9 492.2 372.2
Electra Private E . . .1731.0 -2.0 1755.0 1177.0
F&C Inv Trust . . . . . . .311.4 -2.4 317.5 251.4
Fidelity China Sp . . . .102.7 0.3 128.7 96.1
Fidelity European . .1259.0 -11.0 1287.0 916.0
Fidelity Special . . . . .568.0 -6.0 595.0 503.0
Herald Inv Trust . . . . .524.0 -1.0 541.0 350.5
HICL Infrastructu . . . .117.6 -0.5 121.3 112.0
Impax Environment .119.9 -1.8 130.5 106.5
JPMorgan American .850.0 -10.0 909.0 673.0
JPMorgan Asian In . .235.0 -0.5 250.8 187.1
JPMorgan Emerging .586.5 -1.5 639.0 479.5
JPMorgan European .925.0 -14.0 983.5 614.0
JPMorgan Indian I . . .419.8 -0.3 502.0 394.1
JPMorgan Russian .665.0 3.5 755.0 502.0
Law Debenture Cor . .367.5 -2.4 372.4 273.3
Mercantile Inv Tr . . .1083.0 -7.0 1137.0 840.0
Merchants Trust . . . .423.0 -4.7 431.8 320.0
Monks Inv Trust . . . .353.8 -1.7 367.9 275.5
Murray Income Tru . .656.0 -12.0 672.0 518.0
Murray Internatio . . .948.0 -10.5 966.0 803.0
Perpetual Income . . .271.8 -4.0 276.0 212.0
Polar Cap Technol . .349.4 0.0 391.2 273.6
RIT Capital Partn . . .1317.0 4.0 1328.0 1056.0
Schroder Asia Pac . .221.0 -0.4 233.6 182.8
Scottish Inv Trus . . . .512.0 2.5 517.0 401.5
Scottish Mortgage . .730.0 -5.5 764.0 533.0
SVG Capital . . . . . . . .259.7 -5.0 279.8 137.8
Temple Bar Inv Tr . . .933.0 -4.0 947.5 717.0
Templeton Emergin .634.5 -1.5 689.5 515.0
TR Property Inv T . . .194.5 -0.5 201.0 132.3
TR Property Inv T . . . .90.3 -0.2 91.0 59.5
Witan Inv Trust . . . . .511.0 -2.5 528.0 409.9
3i Group . . . . . . . . . . .274.8 -5.3 340.0 254.1
3i Infrastructure . . . .122.8 -1.0 125.2 106.6
Aberdeen Asset Ma .227.2 -3.2 240.0 123.0
Ashmore Group . . . .376.5 -5.1 383.7 236.5
Berkeley Technolo . . . .4.3 0.0 9.0 2.2
Brewin Dolphin Ho . .154.7 -4.2 185.4 114.0
Camellia . . . . . . . . .10690.0-123.010870.07410.0
Charles Taylor Co . . .131.5 0.1 240.0 122.0
City of London Gr . . . .85.0 0.0 93.6 65.8
City of London In . . .427.5 -4.0 461.5 273.5
Close Brothers Gr . . .790.0 -0.5 888.5 664.0
Collins Stewart H . . . .79.0 -1.8 90.8 67.3
Evolution Group . . . . .65.0 -2.8 98.0 65.0
F&C Asset Managem .77.5 -1.5 92.9 47.5
Hargreaves Lansdo .634.5 -5.5 646.5 317.4
Helphire Group . . . . . . .3.6 -0.1 45.0 3.3
Henderson Group . . .142.0 -3.0 173.1 118.1
Highway Capital . . . . .15.5 -1.5 21.0 6.0
ICAP . . . . . . . . . . . . . .468.1 -4.4 570.5 380.2
IG Group Holdings . .440.0 -4.9 553.0 392.2
Intermediate Capi . . .326.4 -4.0 360.3 240.4
International Per . . . .368.1 -7.6 386.6 183.3
International Pub . . . .116.6 -0.2 118.3 108.6
Investec . . . . . . . . . . .499.1 -7.4 538.0 429.2
IP Group . . . . . . . . . . . .49.8 -2.9 53.8 27.9
Jupiter Fund Mana . .279.7 -5.0 337.3 180.3
LMS Capital . . . . . . . . .63.8 0.0 64.8 40.0
London Finance & . . .23.0 -0.5 23.5 16.5
London Stock Exch .945.0 -15.0 990.0 544.0
Man Group . . . . . . . . .244.1 -4.5 311.0 206.4
Paragon Group Of . .204.7 0.2 206.1 114.4
Provident Financi . . .969.5 -4.5 1033.0 728.5
Rathbone Brothers .1170.0 -23.0 1257.0 762.5
Real Estate Credi . . . . .1.4 -0.0 2.4 0.9
RSM Tenon Group . . .26.0 1.0 66.3 21.3
S & U . . . . . . . . . . . . .635.0 -2.5 708.5 482.5
Schroders . . . . . . . .1559.0 -38.0 1922.0 1154.0
Schroders (Non-Vo .1306.0 -25.0 1554.0 950.5
Tullett Prebon . . . . . .364.5 -6.3 428.6 307.5
Walker Crips Grou . . .47.5 -1.5 50.0 46.3
BT Group . . . . . . . . . .195.6 -2.0 201.9 125.6
Cable & Wireless . . . .41.2 -0.7 61.4 40.8
Cable & Wireless . . . .51.0 -4.1 92.0 46.6
COLT Group SA . . . .143.0 -2.8 156.2 109.0
TalkTalk Telecom . . .150.0 0.7 168.3 114.3
TelecomPlus . . . . . . .581.5 -14.5 603.2 327.0
Booker Group . . . . . . .69.0 -0.7 70.3 39.5
Greggs . . . . . . . . . . . .534.5 -7.5 542.0 418.7
Morrison (Wm) Sup .296.2 -3.2 308.3 257.7
Ocado Group . . . . . . .226.0 -2.2 285.0 123.5
Sainsbury (J) . . . . . . .331.4 -5.3 395.0 317.2
Tesco . . . . . . . . . . . . .408.9 -3.1 440.7 377.5
Associated Britis . .1044.0 -25.0 1182.0 940.0
Cranswick . . . . . . . . .765.0 -20.0 907.5 735.0
Dairy Crest Group . . .393.9 0.9 424.9 339.7
Devro . . . . . . . . . . . . .283.0 -3.4 296.9 175.5
Premier Foods . . . . . . .30.5 -0.5 35.1 16.0
Tate & Lyle . . . . . . . . .650.5 -5.5 659.0 409.1
Unilever . . . . . . . . . .1963.0 -17.0 2000.0 1688.0
Mondi . . . . . . . . . . . . .612.0 -2.5 615.5 367.6
Centrica . . . . . . . . . . .322.0 -0.3 346.1 277.3
International Pow . . .315.2 -3.4 448.6 289.6
National Grid . . . . . . .594.5 1.0 632.5 484.2
Northumbrian Wate .374.5 3.2 376.6 280.9
Pennon Group . . . . . .656.5 -5.5 675.0 527.0
Severn Trent . . . . . .1453.0 -7.0 1517.0 1216.0
United Utilities . . . . .599.0 -9.0 632.0 520.0
Cookson Group . . . . .664.0 -19.5 724.5 367.4
DS Smith . . . . . . . . . .215.9 -3.6 226.0 108.0
Glencore Internat . . .511.5 -8.7 531.1 505.0
BAE Systems . . . . . .319.5 -3.7 369.9 294.7
Chemring Group . . . .656.5 -20.5 736.5 519.6
Cobham . . . . . . . . . . .213.9 -9.7 247.6 192.3
Meggitt . . . . . . . . . . . .353.9 -10.7 380.9 261.7
QinetiQ Group . . . . . .118.5 -0.8 136.3 96.7
Rolls-Royce Group . .607.5 -13.5 665.0 535.0
Senior . . . . . . . . . . . . .150.9 -2.1 159.5 111.2
Ultra Electronics . . .1640.0 -38.0 1895.0 1522.0
GKN . . . . . . . . . . . . . .209.0 -4.4 237.1 109.3
Barclays . . . . . . . . . . .263.2 0.6 344.0 255.4
HSBC Holdings . . . . .616.6 -6.6 730.9 596.2
Lloyds Banking Gr . . .48.7 1.1 77.6 46.9
Royal Bank of Sco . . .41.4 -0.0 52.1 37.6
Standard Chartere .1560.0 -18.0 1950.0 1522.2
AG Barr . . . . . . . . . .1361.0 -22.0 1395.0 1014.0
Britvic . . . . . . . . . . . . .416.2 -15.6 518.0 364.5
Diageo . . . . . . . . . . .1266.0 -17.0 1301.0 1033.0
SABMiller . . . . . . . . .2213.0 -21.5 2306.0 1827.0
AZ Electronic Mat . . .326.3 3.9 338.1 248.5
Croda Internation . .1935.0 -11.0 1949.0 971.0
Elementis . . . . . . . . . .154.3 -4.9 169.8 58.8
Johnson Matthey . .1952.0 -71.0 2119.0 1460.0
Victrex . . . . . . . . . . .1458.0 5.0 1525.0 1049.0
Price Chg High Low
Bellway . . . . . . . . . . . .702.5 -10.5 753.5 511.0
Berkeley Group Ho .1095.0 -11.0 1156.0 751.0
Bovis Homes Group .423.4 -9.6 464.7 326.6
Persimmon . . . . . . . .451.0 -8.0 502.5 336.5
Reckitt Benckiser . .3450.0 -15.0 3648.0 3015.0
Redrow . . . . . . . . . . . .114.8 -2.2 139.0 97.5
Taylor Wimpey . . . . . . .35.7 -0.2 43.3 22.3
Bodycote . . . . . . . . . .360.5 -11.4 397.7 182.5
Charter Internati . . . .738.0 -24.5 853.5 567.0
Fenner . . . . . . . . . . . .367.8 -7.2 391.9 186.8
IMI . . . . . . . . . . . . . . .1005.0 -26.0 1112.0 642.0
Melrose . . . . . . . . . . .330.1 -4.8 355.5 203.4
Northgate . . . . . . . . . .318.0 -8.0 346.7 152.3
Rotork . . . . . . . . . . .1664.0 -40.0 1895.0 1254.0
Spirax-Sarco Engi . .1913.0 -78.0 2063.0 1346.0
Weir Group . . . . . . .1956.0 -44.0 2000.0 902.0
Ferrexpo . . . . . . . . . . .467.0 -3.7 499.0 235.0
Talvivaara Mining . . .451.3 -18.7 622.0 351.6
BBAAviation . . . . . . .209.0 -6.5 240.8 175.0
Stobart Group Ltd . . .135.4 -2.6 163.6 124.1
Admiral Group . . . . .1739.0 2.0 1754.0 1324.0
Haynes Publishing . .247.5 0.0 262.5 202.5
Huntsworth . . . . . . . . .73.8 -0.8 87.5 65.0
Informa . . . . . . . . . . . .426.8 -1.8 461.1 342.1
ITE Group . . . . . . . . . .245.1 -2.7 258.2 136.2
ITV . . . . . . . . . . . . . . . . .67.3 -1.1 93.5 48.3
Johnston Press . . . . . . .5.1 -0.2 20.0 4.6
MecomGroup . . . . . .245.5 -3.5 310.0 162.0
Moneysupermarket. .109.3 2.0 109.7 64.6
Pearson . . . . . . . . . .1137.0 -8.0 1171.0 864.0
Reed Elsevier . . . . . .546.0 0.0 590.5 476.2
Rightmove . . . . . . . .1088.0 -3.0 1104.0 596.5
STV Group . . . . . . . . .134.3 -6.8 168.0 66.0
Tarsus Group . . . . . .143.5 -1.0 165.0 112.0
Trinity Mirror . . . . . . . .42.5 -0.5 124.3 41.5
United Business M . .559.5 -5.5 725.0 483.8
UTV Media . . . . . . . . .129.0 0.3 151.0 106.0
Wilmington Group . . .114.0 -5.0 183.0 110.3
WPP . . . . . . . . . . . . . .724.0 -8.0 846.5 614.5
Yell Group . . . . . . . . . . .6.1 0.0 30.7 5.8
African Barrick G . . .415.0 -35.0 670.0 404.1
Anglo American . . .2924.5 -49.5 3437.0 2254.0
Anglo Pacific Gro . . .299.1 -9.9 369.3 241.5
Antofagasta . . . . . . .1226.0 -64.0 1634.0 761.0
Aquarius Platinum . .339.7 -3.1 419.0 227.1
BHP Billiton . . . . . . .2295.0 -47.0 2631.5 1684.5
Amlin . . . . . . . . . . . . .420.1 -4.9 433.0 369.3
Beazley . . . . . . . . . . . .127.0 -3.0 139.2 109.1
Catlin Group Ltd. . . .418.0 -3.4 421.4 319.9
Hiscox Ltd. . . . . . . . . .416.0 -4.3 424.7 336.1
Jardine Lloyd Tho . . .681.5 -4.0 709.0 521.5
Lancashire Holdin . . .647.5 -5.0 655.0 480.0
RSA Insurance Gro . .136.4 -1.0 143.5 117.3
Aviva . . . . . . . . . . . . . .424.4 -5.2 477.9 305.8
Legal & General G . . .114.7 -0.9 123.8 75.6
Old Mutual . . . . . . . . .126.7 -2.0 145.2 102.0
Phoenix Group Hol . .656.5 -5.5 758.0 584.5
Prudential . . . . . . . . .710.5 -9.5 777.0 489.2
Resolution Ltd. . . . . .304.0 -4.3 311.7 211.3
St James's Place . . . .339.0 -1.3 360.4 204.2
Standard Life . . . . . . .204.5 -1.7 244.7 173.0
4imprint Group . . . . .284.0 0.0 287.3 195.0
Aegis Group . . . . . . .150.5 0.3 151.4 103.6
Bloomsbury Publis . .129.5 3.5 138.0 108.5
British Sky Broad . . .833.0 -1.5 849.0 563.5
Centaur Media . . . . . . .53.8 -1.1 73.0 45.8
Chime Communicati .279.8 1.3 298.5 158.0
Creston . . . . . . . . . . .120.5 -0.5 122.0 78.5
Daily Mail and Ge . . .438.2 -6.1 594.5 433.0
Euromoney Institu . .674.0 -4.5 736.0 562.5
Future . . . . . . . . . . . . . .18.5 0.0 30.0 15.8
Centamin Egypt Lt . .121.8 -2.7 197.1 115.8
Eurasian Natural . . .803.0 -16.5 1125.0 795.0
Fresnillo . . . . . . . . . .1393.0 -34.0 1682.0 939.0
GemDiamonds Ltd. .267.0 -3.0 306.0 186.3
Hochschild Mining . .484.1 -4.4 680.0 289.4
Kazakhmys . . . . . . .1229.0 -42.0 1671.0 965.0
Kenmare Resources . .45.9 -0.8 50.3 11.5
Lonmin . . . . . . . . . . .1535.0 -36.0 1983.0 1355.0
Petropavlovsk . . . . . .734.0 -28.5 1365.0 720.5
Randgold Resource 4797.0-101.0 6655.0 4425.0
Rio Tinto . . . . . . . . .4147.0 -52.0 4712.0 2880.5
Vedanta Resources 2026.0 -54.0 2583.0 1839.0
Xstrata . . . . . . . . . . .1344.5 -26.0 1550.0 845.8
Inmarsat . . . . . . . . . . .603.0 1.0 821.0 575.0
Vodafone Group . . . .161.7 -1.8 181.9 135.4
Genesis Emerging . .523.0 -4.0 568.0 436.5
Afren . . . . . . . . . . . . . .165.7 1.7 171.2 79.2
BG Group . . . . . . . . .1351.0 -14.0 1564.5 1002.0
BP . . . . . . . . . . . . . . . .444.2 -4.0 509.0 302.9
Cairn Energy . . . . . . .421.2 -6.3 493.2 366.0
EnQuest . . . . . . . . . . .129.8 -1.0 158.5 96.0
Essar Energy . . . . . .420.3 -14.2 589.5 387.1
Exillon Energy . . . . . .448.2 -4.8 469.7 166.5
Heritage Oil . . . . . . . .240.6 -0.4 486.0 227.8
JKX Oil & Gas . . . . . .285.0 -7.6 335.1 228.0
Premier Oil . . . . . . . . .473.4 -6.8 535.0 283.3
Royal Dutch Shell . .2124.5 1.0 2326.5 1624.0
Royal Dutch Shell . .2136.0 3.5 2336.0 1554.0
Salamander Energy .270.0 -8.6 317.6 210.0
Soco Internationa . . .386.5 -1.5 484.2 292.0
Tullow Oil . . . . . . . . .1299.0 -11.0 1493.0 991.5
Amec . . . . . . . . . . . .1092.0 -17.0 1251.0 805.5
Hunting . . . . . . . . . . .726.0 -23.0 817.0 439.4
John Wood Group . .629.0 -9.0 706.0 293.1
Lamprell . . . . . . . . . . .378.4 -13.1 400.9 195.3
Petrofac Ltd. . . . . . .1527.0 -17.0 1685.0 1141.0
Burberry Group . . . .1278.0 -34.0 1365.0 726.5
PZ Cussons . . . . . . . .369.8 -18.1 409.0 295.0
Supergroup . . . . . . .1006.0 26.5 1820.0 620.0
AstraZeneca . . . . . .3161.5 -14.5 3385.0 2801.5
BTG . . . . . . . . . . . . . .277.2 -5.3 283.1 181.0
Genus . . . . . . . . . . . .1036.0 -10.0 1049.0 704.5
GlaxoSmithKline . . .1294.5 -11.0 1348.5 1095.0
Hikma Pharmaceuti .838.5 -30.5 900.0 674.5
Shire Plc . . . . . . . . . .1875.0 -20.0 1961.0 1341.0
Capital & Countie . . .176.7 0.9 180.1 102.0
Daejan Holdings . . .2790.0 -20.0 2919.0 2220.0
F&C Commercial Pr .106.6 0.7 108.0 88.0
Grainger . . . . . . . . . . .124.6 -1.5 128.2 86.3
Helical Bar . . . . . . . . .262.5 -3.6 339.5 255.3
London & Stamford .132.1 -5.7 140.0 110.3
Savills . . . . . . . . . . . . .412.5 -7.3 427.1 273.1
St. Modwen Proper . .190.3 1.7 190.9 135.4
UK Commercial Pro . .84.4 0.4 85.0 74.3
Unite Group . . . . . . . .219.0 0.5 229.8 163.0
Big Yellow Group . . .321.4 -7.0 353.3 284.4
British Land Co . . . . .588.0 -5.0 604.5 429.0
Capital Shopping . . .383.1 -3.6 424.8 301.3
Derwent London . . .1844.0 -9.0 1860.0 1208.0
Great Portland Es . . .435.8 -3.8 442.2 280.5
Hammerson . . . . . . . .477.0 -4.0 486.3 336.3
Hansteen Holdings . . .86.3 0.1 89.3 59.4
Land Securities G . . .836.0 -6.0 852.0 545.0
SEGRO . . . . . . . . . . . .323.3 -2.8 331.3 250.2
Shaftesbury . . . . . . . .528.0 -11.0 539.0 349.3
Autonomy Corporat 1775.0 -31.0 1975.0 1271.0
Aveva Group . . . . . .1690.0 -30.0 1739.0 1125.0
Computacenter . . . . .450.6 -18.3 489.7 260.0
Fidessa Group . . . . .1950.0 -21.0 1971.0 1300.0
Invensys . . . . . . . . . . .301.8 -1.2 364.3 230.2
Kofax . . . . . . . . . . . . .496.0 8.0 535.0 231.0
Logica . . . . . . . . . . . .130.5 -2.0 147.2 101.7
Micro Focus Inter . . .373.4 -4.3 541.5 276.0
Misys . . . . . . . . . . . . .388.0 9.2 398.4 227.0
Sage Group . . . . . . . .285.5 -2.7 302.0 222.7
SDL . . . . . . . . . . . . . . .700.0 -10.5 710.5 441.2
Telecity Group . . . . . .540.0 -2.0 548.5 374.0
Aggreko . . . . . . . . . .1909.0 0.0 1925.0 1346.0
Ashtead Group . . . . .175.0 -1.0 207.9 77.0
Atkins (WS) . . . . . . . .818.5 -1.5 823.5 650.0
Babcock Internati . . .683.0 -11.0 704.5 492.8
Berendsen . . . . . . . . .493.0 -6.6 519.5 360.2
Bunzl . . . . . . . . . . . . .771.5 -7.0 783.0 658.0
Capita Group . . . . . . .742.0 4.5 810.0 635.5
Carillion . . . . . . . . . . .369.8 -4.2 403.2 291.2
De La Rue . . . . . . . . .783.5 -2.0 984.0 549.5
Electrocomponents .290.0 -4.5 294.9 205.7
Experian . . . . . . . . . . .779.0 -7.5 819.0 578.0
Filtrona PLC . . . . . . . .369.0 -2.5 385.5 193.8
G4S . . . . . . . . . . . . . . .284.1 -4.4 291.0 237.7
Hays . . . . . . . . . . . . . .105.5 -1.4 133.6 88.4
Homeserve . . . . . . . .531.5 6.0 532.0 398.6
Howden Joinery Gr . .106.6 -1.8 127.5 56.8
Intertek Group . . . . .1982.0 -8.0 2148.0 1379.0
Michael Page Inte . . .536.0 -7.0 567.0 349.4
Mitie Group . . . . . . . .229.1 -1.1 241.1 188.7
Premier Farnell . . . . .284.0 -3.1 308.8 210.2
Regus . . . . . . . . . . . . .107.7 -3.4 119.0 66.1
Rentokil Initial . . . . . . .97.3 -0.8 121.7 84.3
RPS Group . . . . . . . . .240.4 -0.6 251.4 169.8
Serco Group . . . . . . .584.0 0.0 640.0 529.5
Shanks Group . . . . . .128.5 -1.0 130.5 96.5
SIG . . . . . . . . . . . . . . .144.9 -2.4 153.5 90.7
SThree . . . . . . . . . . . .395.9 2.5 447.6 231.1
Travis Perkins . . . . .1040.0 -16.0 1127.0 709.0
Wolseley . . . . . . . . .1907.0 -23.0 2261.0 1223.0
ARM Holdings . . . . . .565.5 -8.5 651.0 264.3
CSR . . . . . . . . . . . . . .326.1 -7.4 447.0 280.9
Imagination Techn . .487.1 -4.9 502.0 235.0
Pace . . . . . . . . . . . . . .108.4 -2.6 231.8 93.0
Spirent Communica .147.0 -1.8 160.3 104.5
British American . .2702.5 -28.0 2745.5 2091.0
Imperial Tobacco . .2139.0 -32.0 2231.0 1784.0
Avis Europe . . . . . . . .198.0 1.0 267.9 184.0
Betfair Group . . . . . . .799.5 5.5 1550.0 753.0
Bwin.party Digita . . .144.1 -1.5 309.5 127.5
Carnival . . . . . . . . . .2306.0 -49.0 3153.0 2037.0
Compass Group . . . .584.0 -7.0 594.0 501.0
Domino's Pizza UK . .395.0 -4.8 586.0 349.6
easyJet . . . . . . . . . . . .355.3 -5.4 479.0 322.3
Enterprise Inns . . . . . .76.7 -0.3 122.7 76.3
FirstGroup . . . . . . . . .334.7 -3.0 412.6 311.3
Go-Ahead Group . . .1475.0 -17.0 1504.0 1042.0
Greene King . . . . . . .491.0 -3.7 502.5 376.2
InterContinental . . .1192.0 -29.0 1435.0 982.0
International Con . . .226.1 -3.0 305.0 186.5
JD Wetherspoon . . . .438.0 -1.0 468.3 386.5
Ladbrokes . . . . . . . . .147.1 -0.5 152.2 122.7
Marston's . . . . . . . . . .103.5 -2.0 117.1 90.4
Millennium& Copt . .503.5 -9.5 600.5 392.0
Mitchells & Butle . . . .327.7 -4.2 361.0 274.0
National Express . . .252.3 -2.4 270.2 213.4
Punch Taverns . . . . . .75.0 4.8 90.4 58.0
Rank Group . . . . . . . .150.3 -1.3 153.0 94.8
Restaurant Group . . .295.8 -2.4 335.0 208.2
Stagecoach Group . .246.1 -1.5 249.8 160.7
Thomas Cook Group 142.3 -1.9 205.5 142.0
TUI Travel . . . . . . . . . .222.7 -2.6 271.9 190.0
Whitbread . . . . . . . .1526.0 -26.0 1887.0 1344.0
WilliamHill . . . . . . . . .217.0 0.0 223.5 155.5
Abcam . . . . . . . . . . . .424.0 0.8 428.5 237.4
Albemarle & Bond . .331.5 -0.9 335.0 218.0
Amerisur Resource . .27.5 1.3 29.0 11.5
Archipelago Resou . . .62.8 0.3 66.8 32.3
ASOS . . . . . . . . . . . .2374.0 57.0 2432.0 632.5
Aurelian Oil & Ga . . . .54.3 0.8 92.0 35.8
Avanti Communicat .407.3 -11.8 735.0 376.0
Avocet Mining . . . . . .189.3 -6.8 253.5 112.0
Blinkx . . . . . . . . . . . . .132.8 -2.3 148.8 33.5
Borders & Souther . . .56.0 0.3 93.0 54.0
BowLeven . . . . . . . . .291.8 -5.0 398.0 117.0
Caledon Resources .104.8 -0.3 107.0 23.3
Cape . . . . . . . . . . . . . .558.0 -0.5 567.0 190.5
Conygar Investmen .115.9 -0.6 120.0 101.3
Cove Energy . . . . . . . .79.3 -1.0 112.8 47.5
Daisy Group . . . . . . .107.0 3.0 108.5 86.0
Desire Petroleum . . . .23.5 2.5 168.5 11.3
EMIS Group . . . . . . . .550.0 0.0 555.5 303.5
Encore Oil . . . . . . . . . .62.5 1.0 151.5 28.5
Faroe Petroleum . . . .170.0 -2.0 218.3 113.5
Gulfsands Petrole . . .250.5 -2.3 401.5 234.8
GWPharmaceutical .118.5 -2.5 141.0 83.0
Hamworthy . . . . . . . .639.0 2.0 648.0 292.5
Hargreaves Servic .1007.0 2.0 1040.0 556.5
Healthcare Locums . .112.5 0.0 112.5 112.5
Immunodiagnostic . .960.0 10.0 980.0 575.0
ImpellamGroup . . . .362.5 -13.8 387.5 73.0
James Halstead . . . . .455.0 7.0 485.0 306.0
Kalahari Minerals . . .232.3 0.3 301.0 142.0
London Mining . . . . .386.3 -1.3 436.5 194.0
Lupus Capital . . . . . .123.4 6.4 150.0 72.0
M. P. Evans Group . .420.0 0.1 500.5 317.5
Majestic Wine . . . . . .439.0 -1.0 445.0 268.0
May Gurney Integr . .264.8 -4.3 281.0 177.0
Monitise . . . . . . . . . . . .26.3 -1.0 29.5 17.8
Mulberry Group . . . .1343.0 53.0 1610.0 200.5
Nanoco Group . . . . . . .75.3 0.0 115.8 68.0
Nautical Petroleu . . .338.5 -0.5 547.0 112.5
Nichols . . . . . . . . . . . .565.0 -7.8 578.0 370.0
Numis Corporation . .107.0 1.4 146.5 94.0
Patagonia Gold . . . . . .42.8 1.8 59.3 12.5
Pursuit Dynamics . . .350.0 -8.8 700.0 188.0
Rockhopper Explor .270.8 -6.0 510.0 202.5
RWS Holdings . . . . . .435.0 -2.4 445.0 239.0
Songbird Estates . . .160.0 2.8 161.0 133.8
Sterling Energy . . . . . .45.0 1.0 147.0 44.0
Valiant Petroleum . . .610.0 -18.5 761.5 504.0
Vatukoula Gold Mi . . .118.5 -1.3 227.0 84.0
Young & Co's Brew . .658.0 -11.8 685.0 510.0
Punch Taverns . . . . . .75.0 6.8
Supergroup . . . . . . .1006.0 2.7
Misys . . . . . . . . . . . . .388.0 2.4
Lloyds Banking Gro . .48.7 2.3
Moneysupermarket.c 109.3 1.9
Kofax . . . . . . . . . . . . .496.0 1.6
Dunelm Group . . . . . .464.0 1.3
AZ Electronic Mate . .326.3 1.2
Homeserve . . . . . . . .531.5 1.1
Afren . . . . . . . . . . . . .165.7 1.0
African Barrick Go . .415.0 -7.8
Cable & Wireless W . .51.0 -7.4
Antofagasta . . . . . . .1226.0 -5.0
PZ Cussons . . . . . . . .369.8 -4.7
Cobham . . . . . . . . . . .213.9 -4.3
London & Stamford .132.1 -4.1
Talvivaara Mining . . .451.3 -4.0
Spirax-Sarco Engin .1913.0 -3.9
Computacenter . . . . .450.6 -3.9
Petropavlovsk . . . . . .734.0 -3.7
Risers Fallers
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:
globaltechsales@webfg.com
AUTOMOBILES & PARTS
BANKS
ALTERNATIVE ENERGY
CHEMICALS
BEVERAGES
GENERAL INDUSTRIALS
MOBILE TELECOMS
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
MINING
NONEQUITY INVESTM. COMM.
Tsy 3.250 11 . . . . .101.38 -0.01 103.8 101.4
Tsy 9.000 11 . . . . .100.77 -0.02 109.1 100.8
Tsy 2.500 11 . . . . .307.67 0.00 310.0 307.7
Tsy 9.000 12 . . . .109.44 0.00 116.9 108.6
Tsy 5.000 12 . . . .103.28 -0.03 107.3 103.2
Tsy 5.250 12 . . . .104.52 -0.01 108.5 104.5
Tsy 2.500 13 . . . .286.96 0.15 287.0 274.0
Tsy 8.000 13 . . . . .115.91 0.07 121.3 115.7
Tsy 4.500 13 . . . .106.30 0.05 109.2 105.8
Tsy 5.000 14 . . . . .111.16 0.13 114.1 109.2
Tsy 7.750 15 . . . .104.39 -0.14 111.0 76.0
Tsy 8.000 15 . . . .126.34 0.19 131.6 123.7
Tsy 4.750 15 . . . . .111.81 0.19 114.7 108.6
Tsy 2.500 16 . . . .331.64 0.43 331.7 304.4
Tsy 4.000 16 . . . .108.93 0.22 111.4 104.9
Tsy 12.000 17 . . .126.82 0.00 185.9 126.0
Tsy 1.250 17 . . . . .111.30 0.37 111.3 104.9
Tsy 8.750 17 . . . .136.45 -0.14 142.2 132.9
Tsy 5.000 18 . . . . .114.45 0.27 117.6 109.7
Tsy 4.500 19 . . . . .110.55 0.29 113.8 105.4
Tsy 3.750 19 . . . .104.74 0.31 107.7 99.4
Tsy 2.500 20 . . . .337.58 0.45 337.8 303.8
Tsy 4.750 20 . . . . .111.90 0.30 115.9 106.6
Tsy 8.000 21 . . . .140.25 0.31 147.1 133.8
Tsy 4.000 22 . . . .104.31 0.32 108.4 99.0
Tsy 1.875 22 . . . . .116.81 0.50 117.8 108.5
Tsy 2.500 24 . . . .295.96 0.51 296.3 262.1
Tsy 5.000 25 . . . . .113.03 0.38 118.5 107.4
Tsy 4.250 27 . . . .103.33 0.51 108.8 97.9
Tsy 1.250 27 . . . . .110.22 0.60 111.2 100.5
Tsy 6.000 28 . . . .125.52 0.50 132.7 119.5
Tsy 4.750 30 . . . .108.95 0.57 115.0 103.0
Tsy 4.125 30 . . . .281.28 0.73 281.6 248.7
Tsy 4.250 32 . . . .101.98 0.61 107.8 96.0
Tsy 4.250 36 . . . .101.38 0.64 107.4 95.0
Tsy 4.750 38 . . . .109.93 0.67 116.5 102.8
Tsy 4.500 42 . . . .106.21 0.00 112.8 98.9
% %
Wealth Management | Markets
22 CITYA.M. 9 JUNE 2011
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23
Business Features| Careers
Keeping your
cool at work:
making life
less stressful
Lower your blood pressure before it lowers
your career prospects, says Donata Huggins
T
HERE were a whopping 9.8m
working days lost to stress last
year, according to research by
the Health and Safety
Executive. Thats 435,000 people who
reported a case of work-related
stress. That is dreadful news for
everyone from the individual suffer-
ers to the economy at large. But its
not all bad: Neil Shah, the director of
the Stress Management Society, says
we should also see stress as a good
thing. Stress exists to give us an
early warning sign. If we listen to our
bodies, we can prevent psychological
and physical ill-health and stop our-
selves missing work, he says. The
adrenaline stress pumps around our
system is designed to gear us up for
the fight or flight reaction. Stress is
great when confronted with a sabre-
tooth tiger; its not so great when sat
in front of a computer.
The trick in managing your stress
at work is to read the early warning
signs and act pre-emptively, says Dr
Phil Hopley, a specialist in preven-
tion and treatment of stress at LPP
Consulting. He explains that preven-
tion is always better than cure when
it comes to mental health: The
symptoms of a stress problem are
physical, psychological and behav-
ioural. People need to be able to
analyse themselves to catch these
problems early.
But how does one spot the signs?
Psychologically, Hopley says stressed
people are unusually irritable and
bored at work. Physically, they suffer
from sleep problems, fatigue and
headaches. Behaviourally, they have
poor concentration, are forgetful
and disorganised.
We call it pre-
sentee-ism, the
stage before the
employee becomes
an absentee due to stress,
says Hopley.
If you can catch the problem at an
early stage, there are plenty of ways
to stop the problem escalating. Shah
says stress management is really
effective time management: Its so
important to plan your day before
you start. The constant flow of infor-
mation from email and text mes-
sages makes people think they have
to do everything instantly. This is not
true. If you schedule in an hour in
the morning and an hour in the
afternoon to deal with messages and
refuse to allow yourself to get dis-
tracted by them during the rest of
the day, you will discover you get
much more done.
Strategic performance consult-
ant John Swain says people who are
stressed can use tricks to make their
to-do list more manageable: Take
out your list and rank the items in
order of priority.
The system works like this, you
label the items: (A) Must be done or
my head will roll. (B) Need to get this
done because other important
actions depend on this one. (C) Only
on my to-do list because I havent del-
egated it or cant say no. (D) Nobody
but me will notice if this one isnt
done. (E) Vital for the future but
doesnt need to be done today. Then,
Swain explains, you must do (A)
instantly, do (B) next, (C) and (D) are
where you are torturing yourself,
stop it and forget about them. Then
use the time you would have spent
doing them to do (E).
Even simpler tricks can work won-
ders too. Shah says it is important to
step away from your desk every 90
minutes to allow your brain rest so
that it works more effectively. These
little pauses dont have to last long,
as little as 30-90 seconds will suffice.
Shah says you should use the time to
grab a glass of water (not coffee or
sugary snacks, these are stimulants
that will only cause your blood pres-
sure to rise further).
Stress levels can pass the point of
self help. If so, Hopley says eight to
twelve sessions with a therapist
should get sufferers back on track:
Of course, far fewer appointments
are needed if you take preventative
action, sometimes as few as two or
three.
Adding stress prevention to the
top of your to-do could
save you time and
money maybe even
get you promoted.
She is unlikely to
get a promotion
Picture: GETTY
Stress is
great when
confronted
by a sabre
tooth tiger;
its not so
great when
sat in front of
a computer.
S
UMMER is on its way and with that
the promise of picnicking with
friends, taking in concerts, tennis,
festivals and Polo events outdoors
(the vision, of course, never involves
British rain.) Preparing for such affairs can
be a kerfuffle, not least the task of arrang-
ing a good picnic and drinks, but thank-
fully Londons food purveyors have come
up trumps.
This summer theres a spectacular array
of hampers around, offering every food or
tipple your heart could desire. City A.M.
rounded up the best.
Londons food stores
have created a host
of delicious outdoor
options for summer,
writes Lucie Greene
Picnic at Kenwood house. Picture: ALAMY
Lifestyle
24 CITYA.M. 9 JUNE 2011
KUNG FU PANDA
IS BACK
SEE TOMORROWS
NEWSPAPER
C
o
m
e

a
n
d

t
r
y
M
o
d
e
r
n

M
i
l
k

a
t
T
a
s
t
e

o
f

L
o
n
d
o
n

1
6
-
1
9

J
u
n
e
Win a cool
mini fridge!
Chill out this Summer
1. Terms and conditions apply
with the new, sophisticated dairy
drink for adults. Find out more,
including where to buy and how to
enter our competition
1
by visiting
www.modernmilk.co.uk
MOUNT STREET DELI
Mount Street is one of the swishest Mayfair
locales, so it makes sense that its landmark Deli
serves a pretty damn fine hamper too. With 48
hours notice, theyll whip a selection of fresh deli
fare and can also throw in dishes from The Ivy
and nearby Scotts restaurant if that takes your
fancy. www.themountstreetdeli.co.uk
NOBU LONDON
Nobu Park Lane has launched an ultimate
takeaway bento box for summer, including
seared salmon sashimi salad, its famed Black
Cod with Miso, sushi and a desert of milk
chocolate and mango cake and petit fours.
(The deluxe version includes a bottle of Sake.)
From 45, www.noburestaurants.com
DAYLESFORD
ORGANIC
Pop in to any of Daylesford
Organics Pimlico or Westbourne
Grove branches and the store will
happily put together a selection
of sausage rolls, fresh baguettes,
hunks of Dayelsford organic ched-
dar and homemade cakes.
www.daylesfordorganic.com
CARLUCCIOS
Perfect for alfresco feasting, Italian style.
Carluccios is offering 45 picnic packages with
a selection of goodies including focaccia
stuffed with ricotta and pancetta; pork and
wild mushroom terrine with toast and poached
summer salmon. They also have childrens and
vegetarian options. www.carluccios.com
BRITISH FINE
FOODS
This award-winning company
has carved out a loyal reputation
for its mail order hampers. This
summer its launching a new
New England version complete
with nautical striped bag, avail-
able with any assortment of its
pats, relishes, cheese and meats.
75, www.britishfinefoods.com
FORTNUM & MASON
The godfather of picnics. Fortnums Wicker
Picnic features beef carpaccio with horseradish
and bread rolls, dressed lobster, fresh garden salad,
Cropwell Bishop Stilton with Walnut Wafers and,
as a finale, fruit tarts with Fortnums champagne
truffles. All to be washed down with a bottle or
English sparkling wine and Touraine Sauvignon.
200, www.fortnumandmason.com
Top hampers for summer picnics
LANGHAM
HOTEL
The Langham Hotel,
known for its traditional
afternoon teas, is bring-
ing High Tea to you this
summer with a luxurious
picnic hamper, including
Scottish salmon sand-
wiches, home-baked
scones with Champagne
soaked raisins and deli-
cate pastries. Starts
85.00www.lang-
hamhotels.co.uk
T
E
R
R
E
S
T
R
I
A
L
MOCK THE WEEK
BBC2, 10.00PM
New series. Dara O Briain hosts the
topical comedy quiz, with Milton
Jones, Seann Walsh, Chris Addison
and Greg Davies.
HELP! MY HOUSE IS FALLING
DOWN CHANNEL4, 8.00PM
New series. Sarah Beeny comes to the
aid of more homeowners who have
found serious problems with their
properties.
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45
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22
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36
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9
37
8
4
13
4
45 7
15
3
Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
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Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
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
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Temporary love of
an adolescent (5)
4 One of a series published
periodically (5)
8 Funeral pile (4)
9 Straying from the
right course (6)
10 Hour at which something
is due (inits) (3)
12 Endured (6)
14 Face (4)
15 Charming in a childlike
or naive way (7)
17 Woody plant (4)
18 One dozen (6)
19 Completely (3)
20 Swimmer (6)
21 Item used to carry
many cups at once (4)
23 Before due time (5)
24 Inebriated (5)
DOWN
2 Column of light (3)
3 Term of
endearment (7)
5 Sporting dog (7)
6 To a high degree (9)
7 Advantage gained
by beginning early
(as in a race) (4,5)
8 Acceptable to
the taste (9)
11 Cardinal number (3)
13 Knitted jumper (7)
14 Industrial plant for
extracting metal
from ore (7)
16 Nocturnal bird
of prey (3)
22 Beard found on a
bract of grass (3)
T
E
T
M
E N
O
R
D




4
4
4
4
4
S E P I A G R A S P
U A L U M I
C O N F I N E A S S
K A S T T
S O R T S S W E D E
E U
S L A N T S H R U B
H C I C A
A F T L E A R N E D
K O D R O G
E E R I E F O R C E
3 7 7 1 3 1 2
2 8 7 9 4 1 6 3 5
4 1 2 9 4
8 9 5 1 2 5 9
9 6 3 5 8 7 4 2 1
2 3 9 7
6 9 4 1 3 8 2 7 5
1 5 4 9 3 6 1
7 1 2 1 3
4 8 3 7 2 1 6 9 5
5 6 8 9 6 8 7
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
AMUSEMENT
Lifestyle | TV&Games
25 CITYA.M. 9 JUNE 2011
7
0
%
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ANALYSIS l Wages/revenue ratio for Premier League and Championship clubs 2009/10 (%)
175
150
125
100
75
20
0
18 16 14 12 10 8 6 4 2 1
25
50
Wigan
Athletic
Blackburn Rovers
HullCity
Bolton
Wanderers
Sunderland
Everton
Manchester City
Aston Villa
Liverpool
Fulham
Chelsea
Manchester
United
Tottenham
Hotspur
Arsenal
Mean 10.5 Lower wage costs
Lower sporting performance
Higher wage costs
Lower sporting performance
Lower wage costs
Higher sporting performance
Higher wage costs
Higher sporting performance
Mean 69.5m
Birmingham City
West Ham
United
200
League position
Stoke City
Burnley
Wolverhampton
Wanderers
ANALYSIS l Premier League clubs - comparison of total wages with
league position 2009/10(m)
England
96/97 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11
France Germany Italy Spain
685
1,219
1,557
1,747
1,791
1,977 1,975
1,995
2,273
2,441
551
954
1,027
1,017
1,042
1,052
1,219
1,277
1,064
1,421
444
681
880
1,043
1,1081,058
1,236
1,195
1,379
1,438
524
722
676 776
847
953
1,029
1,158
1,326
1,438
293
607
644 643
689
655
696
910
972
989
1,048
1,575
1,501
1,494
Projected
2,326
1,072
1,664
1,622
1,532
2,479
1,080
1,730
1,660
1,700
2,742
0
500
750
1,500
1,250
1,000
1,750
2,000
2,250
2,500
250
2,750
ANALYSIS l Revenue growth of the Big Five European leagues - 1996/97 and 1999/00
to 2009/10(m)
MANCHESTER UNITED kick-started
their summer spending spree by
snatching Blackburn centre-half Phil
Jones from the clutches of Premier
League rivals Arsenal and Liverpool.
Jones, 19, underwent a medical at
Old Trafford yesterday ahead of a
17m move. His transfer represents
the second time in a year that Sir Alex
Ferguson has stolen a march on his
Arsenal counterpart Arsene Wenger
in the pursuit of one of Englands top
young defenders after he persuaded
Chris Smalling to join from Fulham.
Wenger has secured the services of
19-year-old defender Carl Jenkinson
from Charlton, while Liverpool, who
were also interested in Jones, are
expected to complete the 16m cap-
ture of midfielder Jordan Henderson
from Sunderland today.
Man United pip Arsenal to Jones signing
BANNED Pakistan bowler Mohammad
Amir has denied flouting his suspen-
sion and insists he did no wrong in
turning out for a club team in Surrey.
Amir, 19, was banned for five years
for the part he played in the spot-fix-
ing scandal that marred last sum-
mers Test series against England. But
Amir appears to have contravened the
terms of his ban by playing for
Addington 1743 in the Surrey League.
Im not stupid enough to play in a
match where I knew that I would be
taking a risk, said the player. I was
informed by club representatives
before the game that it was a friendly
match at a privately owned ground.
Banned Amir defends club appearance
THE SYMPTOMS have not been hard
to spot. First Yaya Toure, an effective if
unspectacular journeyman midfield-
er, charmed Manchester City into lin-
ing his pockets to the tune of
185,000 a week.
Then some expert brinkmanship
from Wayne Rooney persuaded
Manchester United to bulldoze the
clubs pay structure and hand the
England striker a record-breaking
200,000 a week before bonuses.
Now footballs most widely recog-
nised finance experts have provided
further evidence in comprehensive
detail of the dangerous game being
played by Englands top teams.
According to research published
today by Deloittes Sports Business
Group, Premier League sides spent a
record 68 per cent of their 2bn
income on wages during the 2009-10
season, the most recent for which all
figures are available.
That is up from 62 per cent just two
seasons previously and compared to
just 44 per cent in the early 1990s. To
borrow an expression from United
manager Sir Alex Ferguson, its
squeaky bum time.
Weve always talked about 70 per
cent as being a warning level,
Deloittes Dan Jones, who edited the
Annual Review of Football Finance,
told City A.M.
Obviously you have to look at each
individual club but for the Premier
League overall to be edging towards
that 70 per cent mark is a concern.
It is hardly as if revenue has been
drying up, despite a recession.
English top-flight teams are collec-
tively raking in more than ever, far in
excess of rival European leagues, and
ever-more lucrative TV contracts
mean that trend will continue. The
problem is that the amount spent on
wages in soaring even faster.
Perhaps surprisingly, however, the
salary spending is being driven not by
chequebook-happy City, uber-power-
ful United or oligarch-owned Chelsea,
but by ambitious mid-table clubs who
made average losses of 4m and are
caught in a cycle of excessive wage
inflation as they compete with each
other, says Deloittes report.
There is a logic to their strategy: a
strong correlation exists between
wage bill and league position. Are
clubs merely being sensible? Its
being sensible to a point, says Jones.
Its worth spending more to try to
move up the table but if thats endan-
gering the financial health of your
club then thats taking it too far.
European governing body Uefa
hopes to curb dangerous spending
with Financial Fair Play (FFP) rules,
which broadly require clubs to break
even and will apply from accounts
filed next year onwards. Yet doubts
remain over their widespread effec-
tiveness as they offer little incentive
to middling teams who do not qualify
for Continental competition, or those
from the Championship, who face
even greater financial difficulties.
Fears have also been raised that
clubs seeking to break even will hike
ticket prices, hitting fans in the pock-
et, but Jones sees it differently.
Revenue success has been tremen-
dous. Its going to be about trying to
get hold of costs, not trying to drive
more revenues, he says. So it could
make for some challenging conversa-
tions with players and agents and
probably not before time.
RISKY GAME: WAGES NEAR
BY FRANK DALLERES
FOOTBALL

BY JAMES GOLDMAN
FOOTBALL

BY JAMES GOLDMAN
CRICKET

Sport
26
Top-flight clubs have never had it so good but are
splashing more than ever on salaries, says Deloitte
Wayne Rooney
(above) has reaped
the rewards of
Premier League
clubs willingness
to spend most of
their earnings on
wages
Picture: ACTION
IMAGES
Source for all
graphics on this
page and opposite:
Deloitte Annual
Review of Football
Finance
CHAIRMAN of Londons
Olympic organising commit-
tee Lord Coe has moved to
clarify that hundreds of thou-
sands of tickets will be avail-
able in the upcoming second
ballot.
Over 55 per cent of appli-
cants were left empty-handed
following the first round of
sales and although they are to
be given priority second time
around Lord Coe sparked
confusion yesterday when he
suggested only 100,000 tick-
ets would be up for grabs.
But Coe later confirmed: I
said hundreds of thousands.
Let there be no ambiguity,
there are hundreds of thousands of tick-
ets available in the second phase.
Meanwhile, Lord Coe admitted London
organisers fell short in their attempts to
provide a green Olympic flame at next
years Games. Organisers Locog and sus-
tainability partners EDF Energy had
planned to have a low-carbon torch.
But at the launch of the golden torch
prototype, which saw former Olympic
champions such as Denise
Lewis attend (left), Lord
Coe admitted his organi-
sation failed to meet the
deadline.
We got within touch-
ing distance but ran
out of time, he said.
Hopefully its not
work that will be
wasted, maybe for
Rio [in 2016].
Hundreds of thousands
of 2012 tickets unsold
DANGER LEVEL
BY JAMES GOLDMAN
OLYMPICS

27
The Royal Ascot
Golf Day and Charity Ball
hosted by Derek Thompson and horseracing stars
in aid of Cancer Research UK
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ales (1089464) and in WWa in England &
otland (SC041666) c S
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email sport@cityam.com
Premier League 2,030 2% 83 5% (445) (62%) 1,981 79 (275)
Championship 407 9% (133) (6%) (138) 14% 375 (126) (160)
League1 159 29% (52) (27%) (48) (12%) 123 (41) (43)
League2 68 0% (8) 11% (8) 20% 68 (9) (10)
Total Football League 634 12% (193) (10%) (194) 9% 566 (176) (213)
Overall 2,664 5% (110) (13%) (639) (31%) 2,547 (97) (488)
2009/10 2008/09
Revenue Change on Operating Change on Pre-tax Change on Revenue Operating Pre-tax
2008/09 profit/(loss) 2008/09 loss 2008/09 profit/(loss) loss
m % m % m % m m m
ANALYSISl Revenue and
profitability - the top 92 clubs
AS WORRYING as the situation
in the top flight is, it is far worse
in the Championship, where 4
is spent for every 3 earned.
Financial results for Englands
second tier worsened for the
sixth successive year in 2009-10,
according to Deloitte, while the
average wages-to-turnover ratio
is an eye-watering 88 per cent.
It could get worse, however,
with income set to fall across the
division due to a less lucrative
TV deal starting next year.
The Annual Review of Football
Finance warns clubs urgently
need to take corrective action,
although the reports editor,
Dan Jones, insists there is hope.
There is time to adjust, with 80
per cent of player contracts up
before then, while there appears
less of a correlation between
wage bill and league position.
Jones says: You can buck the
market perhaps more easily
than in the Premier League.
Urgent action needed in dire Championship
as TV revenue shows signs of drying up
BY FRANK DALLERES
FOOTBALL

SPANISH football is riding the

crest of a wave. The national
team are world and European
champions, while Barcelona
dominate the club game, and
Real Madrid, home to Cristiano
Ronaldo and Jose Mourinho, are
no slouches either.
Yet beneath the surface all is
not so rosy. The same individual
selling of broadcast rights that
has made Barca and Real the two
highest earning sports clubs in
the world has also left several La
Liga sides in serious financial dif-
ficulties.
The top two earned more in
2009-10 than their 18 Primera
Division rivals combined and
have a far healthier wages-to-
turnover ratio of 51 per cent
than the others, who average a
dangerous 69 per cent, accord-
ing to Deloittes Annual Review
of Football Finance.
Without a change in revenue
distribution towards the more
egalitarian models used in
Europes other top leagues, how-
ever, the concern is that a peren-
nial two-horse race could lose its
appeal to viewers and the
Spanish game suffer.
You do slightly wonder how
long you can sustain these levels
if they are not facing meaning-
ful competition week in, week
out, says Deloittes Dan Jones.
Spain looks like Scotland.
The model of having two teams
absolutely dominate on and off
the pitch is not a healthy one.
Spain at risk of following Scotland if Barca
and Real allowed to maintain stranglehold
BY FRANK DALLERES
FOOTBALL

0
500
1,000
Barca/Real
revenue
837
419
Average
44
Other clubs
revenue
Barca/Real
wages
Other clubs
wages
214 30
427
544
Matchday Broadcast Commercial
785
273
337
227
188
209
750
250
388
51% 69%
Wages/revenue
Total
ANALYSIS l La Liga clubs revenue and wages: 2009/10 (m)
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