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EUROPES stress tests were too lenient
and are sending analysts down a series
of blind alleys rather than providing
the clarity needed to calm the regions
fraught markets, experts have warned.
The results of the tests, released on
Friday, saw just eight out of 90 banks
fail to maintain sufficient capital in an
adverse scenario devised by the
European Banking Authority (EBA),
although a further 18 only just
scraped a pass. All four major UK
banks passed, with RBS coming out
weakest.
But analysts have said that the sce-
nario tested for by the EBA is a com-
plete red herring.
A blind man on a foggy day can see
that the one thing the market is most
concerned with is sovereign default
and they have not looked at the range
of scenarios we are most interested in,
said Investecs Gareth Hunt.
He said the tests should have exam-
ined three possibilities: a Greek
default, a Greek and Irish default, and
full peripheral contagion a
Doomsday scenario.
What you need is clarity to min-
imise the number of blind alleys that
people have to go down, he added.
Instead, the EBA has factored in a
haircut of just 15 per cent on Greek
sovereign bonds, despite a 50 per cent
discount factored in by markets.
Worst of all, the tests do not exam-
ine the possibility of contagion. The
EBA said it does not take into
account any second-order effects,
despite the threat of a market panic.
MORE: P4-5
BY JULIET SAMUEL
EU ECONOMY

MET CHIEF QUITS

www.cityam.com Issue 1,42 Monday 18 July 2011 FREE
BUSINESS WITH PERSONALITY
Certified Distribution
30/05/11 till 03/07/11 is 102,636
HOURS AFTER REBEKAH BROOKS IS ARRESTED
THE Metropolitan Police chief sen-
sationally quit last night as the
phone hacking scandal spread to
the top of the UK establishment to
claim its most high-profile scalp
yet.
The shock resignation came
just hours after former News
International boss Rebekah
Brooks was arrested over her role
in the affair, taking the total num-
ber of arrests to 10.
Sir Paul Stephenson was forced
to step down after it emerged for-
mer News of the World executive
Neil Wallis, who was arrested last
week as part of the hacking inves-
tigation, was on the police pay-
roll.
The outgoing police chief also
accepted a luxury holiday at
Champneys health spa, for which
Wallis was acting as a publicist. Sir
Paul denied any knowledge of the
link and claimed he had no suspi-
cions that Wallis had been
involved in illegal activity.
In a parting shot at David
Cameron, Sir Paul, who will over-
see a six-month handover, likened
his connection with Wallis to the
Prime Ministers relationship with
Andy Coulson, the PMs former
spin doctor who was also arrested
last week. Mayor of London Boris
Johnson, with whom Sir Paul had
a fractious relationship, said it
was with great sadness that he
accepted the resignation.
The resignation pre-empted a
Commons statement today in
which home secretary Theresa
May planned to criticise the role of
the police in the scandal.
Meanwhile Brooks spent over 10
hours in police custody after being
arrested by appointment by offi-
cers working on Operation
Weeting. She was questioned over
phone hacking and alleged pay-
ments made to police officers. Her
arrest was arranged on Friday
after her resignation from News
International was accepted.
Brooks stepped down from
News International after
political pressure reached
fever pitch. Her appear-
ance at a media select
committee hearing
tomorrow, in which she
faces a grilling from MPs
alongside her former boss
Rupert Murdoch and his
son James, has now been
thrown into doubt.
At the very least it is like-
ly to mean she will be
unable to answer many of
the questions the commit-
tee will throw at her as a
result of the police investi-
gation. MORE:P3
l Sir Paul Stephenson will stay
on at the Met for six months, he
said. Inset: Rebekah Brooks was
arrested. Picture: REUTERS
BY STEVE DINNEEN
MEDIA

Stress tests criticised after they fail to examine sovereign default

News
2 CITYA.M. 18 JULY 2011
Rescue plan
for care home
INVESTORS in Southern Cross are
working on an audacious plan to res-
cue the stricken care homes group
from closure.
Last week, Southern Cross shares
were suspended and it said it would
wind itself up.
Sources told City A.M. the plan to
rescue parts of the business would
involve raising 50m in new funds;
securing a long-term rent reduction
from landlords; and convincing the
firms banks to agree to a debt for
equity swap.
A new management team would
also be put in place, with some
sources suggesting Chai Patel,
founder of the Priory healthcare
chain, as chairman.
Shareholders are annoyed theyve
lost money, as are the banks and
landlords. So of course it makes sense
to try to rescue the company, said
the source.
But for the plan to succeed the
investors would need to form a group
and approach the company within
the next few days. There are a lot of
complex moving parts, said a source
close to the company. Theyd have to
get their act together pretty quickly.
It is not known which shareholders
will support the rescue plan,
although one of the three biggest
Henderson, JO Hambro and Waterfall
will likely need to get on board.
BY HARRY BANKS
HEALTHCARE

TESCO TO TRIAL LOYALTY CARD AT US

OPERATION
Tesco is poised to trial a version of its
successful Clubcard loyalty scheme in
the US, as it strives to stem losses at
its Fresh & Easy chain. Tim Mason,
chief executive of Fresh & Easy, said
the business, which currently has 176
stores and will have 214 by the end of
February next year, was ready to sup-
port a loyalty scheme. It will be
known as the Friends of Fresh & Easy
card, but will be based on Clubcard.
DOUBTS OVER CHINESE STEEL OUTPUT
China is underreporting the amount
of steel it makes by about 40m tonnes
a year roughly the amount made by
Germany according to a new analy-
sis that provides insights into the
recent high prices for the main raw
material used by the world steel
industry. Detective work by Meps, a
UK steel consultancy, indicates that
Chinese steel output last year was
672m tonnes as opposed to the 627m
tonnes reported by the Chinese
authorities.
AIRCRAFT MAKERS STRUGGLE TO FILL
BACK ORDERS
US airlines contemplating a splurge
of spending on new aircraft may
struggle to secure the jets they want,
according to senior industry execu-
tives, as record backlogs at leading
manufacturers such as Boeing and
Airbus squeeze out new orders.
US STEPS UP FOREIGN ANTI-GRAFT
SCRUTINY
State-owned companies in emerging
markets are facing greater scrutiny in
the US as the Department of Justice
and Securities and Exchange
Commission step up enforcement of
the foreign corrupt practices act, reg-
ulators and executives say. Executives
at state-owned companies are consid-
ered government officials by law.
MARKET FOR BROKERS MUST GET
WORSE BEFORE IT CAN GET BETTER
The chief executive of finnCap has
warned of a wave of redundancies
across the stockbroking industry as
specialists in smaller companies are
forced to make severe cost cuts. Sam
Smith said that fees had dwindled as
far fewer companies were floated in
London and because corporate
finance business had all but evaporat-
ed. Far fewer shares were being trad-
ed in the secondary market and
commission here had also fallen dra-
matically.
ASTRAZENECA AWAITS RULINGS
WORTH BILLIONS
AstraZeneca is facing a make or
break week with billions of pounds
at stake as American officials deliver
verdicts on potential blockbuster
drugs such as a new pill that regu-
lates glucose excreted by the body.
TWITTERS GROWING INVASION OF UK
PLC
Chipmaker Arm gets the gold medal
for most industrious tweeter.
Burberry scoops the prize for having
the most friends on Facebook and the
most followers on Twitter, and BPs
videos hauled in more YouTube view-
ers than any FTSE 100 peer in the first
half of the year. The findings are from
the latest survey of how UK plc is
using and adapting to the social
media that has transformed how
information is spread and shared
online over the last five years.
BBC SPEND NEARLY A MILLION POUNDS
ON ACTORS TO HELP TRAIN MANAGERS
The BBC has been accused of acting
like a real life version of the comedy
The Office after spending nearly 1m
on actors to role play as disgruntled
staff. Managers hired the actors to
teach staff how to handle employees.
HERTZ TO BUY VEHICLE-FLEET
LEASING FIRM
Hertz Global Holdings Corp. will
acquire vehicle-fleet leasing and man-
agement company Donlen Corp. for
$250m, and is also assuming $680m
in debt, in a deal the two companies
said they plan to announce today. The
deal is easily digestible for Hertz,
which has a market capitalisation of
$6.2bn, and isnt expected to affect its
efforts to acquire Dollar Thrifty
Automotive Group, said Hertz Chief
Executive Mark Frissora.
OBAMA TO BYPASS WARREN, TAP
CORDRAY TO HEAD CONSUMER
AGENCY
President Barack Obama ended spec-
ulation about who will lead the
Consumer Financial Protection
Bureau by saying he would nominate
former Ohio Attorney General
Richard Cordray for the job.
WHAT THE OTHER PAPERS SAY THIS MORNING
Our free press must not be censored
ALL too predictably, some politicians
and powerful individuals with an
interest in a servile media are using
the hacking crisis to cripple freedom
of speech, to advance their own ideo-
logical agendas and to damage com-
mercial journalism.
First, let me reiterate that this news-
paper, which is independent and not
part of any media group, would never
even dream of engaging in corrupt
practices. We condemn and despise
the sordid going-ons a few years back
at the News of the World. Bosses who
condoned bad practices must be pun-
ished nobody should be above the
law, be it MPs, police or journalists.
Rebekah Brooks and Les Hinton have
rightly had to resign from News Corp;
the Murdochs are rightly having to
face MPs this week. The media and the
police need to be thoroughly cleaned-
up, and cosy, crony relationships with
politicians must be smashed. In most
cases, however, the necessary laws
already exist, and this cleansing must
target any malpractice across the
industry, not just at one firm.
But this doesnt mean free speech
should cease, that newspapers should
be licensed, that robust opinions
should be replaced by compulsory
balance (i.e. whatever is acceptable at
a particular moment in time to the
establishment), that foreigners should
be excluded from media ownership, to
cite just some of the self-interested
positions being spouted by critics. We
need a freer market that caters to all
consumers in this decentralised, plu-
ralist, technologically advanced age,
not the opposite. In the era of global
social media, protectionism is stupid.
News International is the biggest
newspaper firm (though its market
share is exaggerated by the exclusion
of free papers) but those who believe it
needs to be broken up forget that the
BBC is bigger in radio, TV and the
internet than Murdoch is in papers
and the web (and in many cases the
BBC has extremely high market shares
and has crushed private competitors).
Why then arent they also calling for
the break-up of the BBC to ensure com-
petition? Private firms need to fight
for readers and advertisers the BBC
forces TV owners to pay a licence fee or
face prison. So much for moral high
horses. The vast majority of people
never read the Sun, the Daily Mail or
the Telegraph, but nearly everybody
consumes BBC news and other con-
tent, and hence is exposed to its world-
view and unavoidable cultural biases.
Should Facebook, Google and
Twitter be broken up for dominating
their markets? Of course not. The
newspaper market is also more com-
petitive than most people realise. City
A.M. didnt exist a few years ago. Now
we distribute 100,000 copies daily and
are profitable. By contrast, Murdoch
quit the free London market, while the
Daily Mail sold the Evening Standard.
Some of the rules being mooted
would have prevented the MPs expens-
es scandal as well as the Wikileaks sto-
ries. We are even seeing a vendetta
against papers with which critics dis-
agree politically or culturally, or a
desire to shut those who reflect regu-
lar folks views on tax, the EU, law and
order, masquerading as a concern for
competition. The concept of fit and
proper when it comes to owning
media assets is also problematic: it is
subjective and too easy to manipulate.
These are dangerous times. The
small minority of idiots who have dis-
credited the newspaper industry as
well as freedom of the press through
their indefensible actions should be
holding their heads in shame.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
THE final Harry Potter film has shat-
tered worldwide box office records
with $476m (295m) in global ticket
sales since it opened last week.
And the $168.6m US and Canadian
takings for Harry Potter and the
Deathly Hallows -- Part 2 is the best
three-day opening for a film ever, dis-
tributor Warner Bros said yesterday.
It beat the previous record of
$158.4m over the initial three days
for the 2008 Batman movie, The
Dark Knight.
Internationally, the finale for
British author JK Rowlings Harry
Potter series captured a record $307m
in 59 countries since it opened last
week. That includes weekend sales
plus Wednesday and Thursday for
some markets.
The prior record for an overseas
opening belonged to Pirates of the
Caribbean: On Stranger Tides, which
took about $260m outside North
America in its debut in May.
BY JENNY FORSYTH
MEDIA

Harry Potter nets 300m

British author JK Rowlings Harry Potter series is still entrancing audiences after a decade
NEWS | IN BRIEF
Apple set for bumper quarter
Apple is set to deliver yet another
bumper quarter when it announces its
results tomorrow. Analysts expect
stronger second-quarter revenue and
profit, boosted by the easing of compo-
nent shortages for the iPad caused by
the Japanese tsunami, which could
boost gross margins to as high as 41
per cent. The market expects revenues
to rise from $15bn (9.3bn) a year ago
to between $25bn and $30bn, with
earnings rising by as much as 63 per
cent.
Exchanges may need to rethink
Exchanges may have to make radical
changes to their expansion plans in
light of the tougher-than-expected
stance taken by regulators over merg-
ers and a lack of appetite for foreign
takeovers. IntercontinentalExchange
(ICE) chief executive Jeff Sprecher
pointed to a string of planned tie-ups,
such as that between the London
Stock Exchange and TMX Group, that
have failed, with nationalists arguing
against assets falling into the hands of
foreign firms.
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editors
Code of Practice, a copy of which can be found at
www.pcc.org.uk
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Distribution helpline
If you have any comments about the distribution
of City A.M. Please ring 0207 015 1230, or email
distribution@cityam.com
City sources suggested
Chai Patel, the founder
of the Priory health-
care chain, could
become chairman
Please note our new address
4th Floor, 33 Queen Street, London, EC4R 1BR
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
OVER a quarter (26 per cent) of large
businesses are considering a full or
part relocation abroad, with Britains
high and complex taxes remaining
their main cause for complaint.
More than half (58 per cent) of the
businesses eyeing a move to foreign
shores cited tax issues as a leading fac-
tor, according to research by HMRC.
Around one in five (19 per cent) of
those considering a move cited gener-
al business tax issues as their primary
complaint, while 13 per cent said that
more favourable tax conditions in
other countries had prompted them
to consider a move.
Over three quarters (78 per cent) of
HMRCs large business service cus-
tomers said that the administrative
burden of tax compliance had
increased from 2009 to 2010.
Lack of certainty is also a serious
concern for large businesses, yet the
government repeatedly tinkers with
the tax system, said Roy Maugham, a
tax partner at UHY Hacker Young.
The increase in the supplementary
charge on North Sea oil and gas com-
panies announced at this years
Budget, without any consultation or
warning, is just one example. The
government needs to start making
headway on tax simplification,
Maugham added.
THE scandal threatening to topple
Rupert Murdochs empire continued
to gather pace yesterday, after the
Serious Fraud Office (SFO) was asked
to investigate News International.
The SFO became involved after
Labour MP Tom Watson wrote to the
body asking it to investigate settle-
ments made in the wake of the
phone hacking scandal.
Watson branded payments
totalling more than 1m to public fig-
ures including Gordon Taylor, former
head of the FA, a gross misuse of
shareholders money.
There is no guarantee that a full
probe will be launched. The SFO was
unavailable for comment.
Any probe would be in addition to
criminal investigations underway
here and across the Atlantic,
although experts say the US legal
process is likely to prevent any action
being taken there in the short term.
Meanwhile, James Murdochs posi-
tion as BSkyB chairman is understood
to be under further scrutiny as the
crisis at the British newspaper compa-
ny worsens.
A source close to the Sky board last
week told City A.M. the directors are
waiting for James Murdoch to appear
in front of the media select commit-
tee before they decide their position
on his chairmanship. The broadcaster
is now said to be considering a share
buy-back that could return as much
as 1.9bn to investors.
Labour leader Ed Miliband yester-
day called for the break-up of the
Murdoch empire, saying that
amount of power in one persons
hands has clearly led to abuses of
power.
Miliband will also argue today that
media regulation should be over-
hauled to prevent the emergence of a
future Murdoch figure.
SFO asked to
probe News
International
Tax issues prompt 26pc of large
firms to consider leaving the UK
BY STEVE DINNEEN
MEDIA

TAXATION

News
3 CITYA.M. 18 JULY 2011
lANOTHER DAY OF TURMOIL FOR MURDOCH EMPIRE
6:00am
Labour leader Ed
Miliband calls for the
Murdoch empire to be
broken up in an inter-
view with the Observer.
He says the regulatory
system should be over-
hauled to ensure that
there are limits on how
much of the media a sin-
gle proprietor can own.
He will push for cross
party agreement on
ownership laws.
1:00pm
Police announce that for-
mer News International
chief executive Rebekah
Brooks has been arrest-
ed. Brooks, who quit on
Friday after intense politi-
cal pressure, was arrest-
ed by appointment and
spent the entire day in
police custody facing
questions over her knowl-
edge of the hacking scan-
dal and payments to
police officers.
7:30pm
Met Police commission-
er Sir Paul Stephenson
announces his resigna-
tion. It comes after a
weekend of growing
pressure, in which his
judgement was ques-
tioned over a holiday he
accepted from a com-
pany linked to arrested
former News of the
World executive Neil
Wallis. He denies any
wrongdoing.
11:00am
Deputy prime minister
Nick Clegg says he is
"incredibly worried"
about the affect the
hacking scandal has had
on the police and its
reputation with the
public. He says he will
not call for the head of
commissioner
Stephenson until after
the media select com-
mittee hearing he is due
to appear at tomorrow.
ANALYSIS l British Sky Broadcasting Group PLC
p
11 Jul 12Jul 13Jul 14Jul 15Jul
710
700
690
680
670
709.50
15 Jul
UK BANKS would see 92.8bn wiped
off the value of their loan books
under the stress scenario devised by
the European Banking Authority
(EBA) but the tests do not give a
clear indication of how much of
that would be due to sovereign debt
problems and did not test the effect
of a default scenario.
The test results, published on
Friday evening, also predict that
Britains big four lenders RBS,
HSBC, Lloyds and Barclays would
suffer another 17.5bn in losses in
their trading books, 2.9bn of
which would be related to sov-
ereign shock.
But they do not reveal
how much of the 92.8bn
in losses from impair-
ments on their banking
books their loan-based,
mostly retail-focused activ-
ities is related to sover-
eign debt.
And the losses modelled in
the UK alone dwarf the capital-
raising that the EBA says is
required to fix Europes
banks, which it puts
at a paltry
2.5bn.
The incon-
sistency in
the tests
di scl osure
has added
to a sense
that sovereign debt has been treat-
ed far too optimistically by the EBA
while other assets have been treated
too harshly.
In aggregate, the EBA claims that
sovereign issues will be responsible
for just three per cent of loss provi-
sions made by banks over the next
two years equivalent to 11.5bn in
the Eurozone overall but given
that banks exposure to peripheral
nations debt alone runs into the
hundreds of billions, the estimate is
viewed as overly rosy.
The overall effect, according to
some analysts, is to perpetuate the
damaging uncertainty that has
haunted financial markets through-
out the sovereign debt crisis.
BGC Partners David Buik
said: It is still impossible to
calculate how accurate they
are with so many banks
sovereign debt portfolios
looking vulnerable, were
there to be any defaults.
Overall, UK banks are esti-
mated to have 23bn in
direct exposure to
European national
debt.
Stress tests
leave cloud of
uncertainty
BY JULIET SAMUEL
EUROZONE

News
4 CITYA.M. 18 JULY 2011
Watchdog fails even on the basics
ANALYSIS | Stress Tests
O
dd was how one analyst
described a set of modelling
decisions by the European
Banking Authority (EBA) in its
latest round of stress tests.
Or, as another summed up: Im
glad none of the UK banks have
failed, but what has it really told me
about the risks they face?
After a weekend that analysts have
spent leafing through pages of data,
the tests look increasingly like an
exercise in futility.
The market needed certainty
data that would allow investors to
discriminate between risky lenders
that deserve a deep discount, and
sound banks caught up in the mael-
strom.
Instead, we got an avalanche of
interesting, but only moderately use-
ful information, with a bizarre con-
clusion: the fragility of the entire EU
banking system can apparently be
solved for the bargain basement
price of 2.5bn in extra capital.
That is, provided no one defaults.
And provided there are no second-
round effects from the crisis.
It would be hard to think of a less
reassuring conclusion from the EUs
brand new banking super regulator.
But the problem is not just that
the EBA turned a blind eye to the
markets most pressing concerns. It
also added to analysts problems in
its own special way by, for example,
taking a definition of capital used
under neither Basel II nor Basel III
rules.
Under the EBAs peculiar defini-
tions, the average banks stock of
core tier one capital fell from 10.1
per cent to 7.6 per cent before an
adverse scenario entered the equa-
tion, with RBS alone seeing its ratio
fall from 11.1 per cent to 9.7 per cent.
When super-regulators cant even
agree on the basics, what chance do
investors have?
BOTTOMLINE
Analysis by Juliet Samuel
BANKS THAT FAILED
Bank Capital required to Core tier 1 ratio in
reach 5% pass rate adverse scenario
ATE Bank (Greece) 713m -0.8%
Banco Pastor (Spain) 317m 3.3%
Grupo Caja3 (Spain) 140m 4%
Oesterreichische 160m 4.5%
Volksbanken (Austria)
Unnim (Spain) 85m 4.5%
Caixa Catalunya (Spain) 85m 4.8%
CAM (Spain) 75m 4.8%
EFG Eurobank (Greece) 58m 4.9%
2.5bn
capital-raising EU
claims is required
376.8bn
forecast losses in
adverse scenario
from banking book
alone
5%
core tier one capital
ratio pass rate
for tests
EBA chief Andrea
Enria presided
over the tests
News
5 CITYA.M. 18 JULY 2011
THE EU should issue region-wide euro-
bonds in order to solve the debt crisis,
Irish deputy prime minister Eamon
Gilmore said yesterday.
Eurozone leaders will meet for an
emergency summit on Thursday under
growing pressure from markets to clar-
ify their message after months of
dithering and divergent signals. Some
observers now view fiscal union and a
common euro-bond (or e-bond) as
the only answer.
It is an option I favour, said
Gilmore of the e-bond idea. It is one
of a series of options that has to be
looked at, he said to Irish state radio
RTE.
An e-bond would be a radical step
towards fiscal integration because it
would see stronger nations explicitly
underwrite debt issued in common
with bankrupt peripheral countries.
Gilmores comments came after an
interview in which ECB president Jean-
Claude Trichet ruled out bending the
Banks collateral rules in order to keep
the liquidity tap running for Eurozone
banks.
If a country defaults, we will no
longer be able to accept its defaulted
government bonds as normal eligible
collateral, he said. Greek banks rely
upon using Athens debt as collateral
for their funding.
Trichet added that the govern-
ments would instead have to work
out an alternative source of collateral,
although it is not clear what form that
could take.
Ireland supportive
of euro-bonds to
solve debt crisis
BY JULIET SAMUEL
EUROZONE

PoliticsHome.com PoliticsHome.com
Apply to join today at www.cityam.com/panel
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In partnership
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City says Italy needs a bailout before the end of
year but EU and IMF will not be able to afford it
ITALY will need a financial rescue this year but
the Eurozone and IMF do not have the finan-
cial clout to put a bailout package together.
That is the stark conclusion of the City
A.M./PoliticsHome Voice of the City Panel.
Of those panellists who expressed an opin-
ion on whether Italy would need a bailout, 60
per cent said it would against 40 per cent
who thought it would not.
But 55 per cent of panellists who expressed
an opinion said the EU and IMF would be
unable to afford a bailout against 45 per cent
who said they would.
Despite this, the vast majority of panel-
lists 60 per cent said they expected Italy to
still be in the Euro by 2014 against 29 per
cent who did not. Twelve per cent did not
know.
A massive majority (88 per cent) of panel-
lists said the UK economy would be damaged
if Italy were to default, against just nine per
cent who thought the UK would emerge
unscathed.
A huge number of panellists felt an Italian
default would lead to the collapse of the
Eurozone and trigger a domino effect in the
world economy.
Large numbers also felt it would herald a
double-dip recession, arguing that an Italian
default could spark a chain of events similar
to the reaction following the collapse of
Lehman Brothers in 2008.
While some felt the chances of Italian
default were overblown, others used the
words apocalypticor Armageddon to
describe a default.
City A.M. and PoliticsHome interviewed
460 members of the Voice of the City panel
by email last week. Members have been spe-
cially recruited to represent a cross section of
Londons financial and business community.
UK BANKS SCORES
Bank Market Cap (bn) Core tier 1 ratio in
adverse scenario
RBS 38 6.3%
Barclays 27 7.3%
Lloyds 31 7.7%
HSBC 105 8.5%
lThe stress tests were the second round
conducted by the EU, which promised they
would be more rigorous than last time,
when only seven banks failed, including
Irelands lenders, which subsequently
required bailouts.
lBanks had to show they could maintain
a five per cent core tier one capital ratio
even in an adverse scenario.
lOnly eight banks of 90 failed this time:
five Spanish, two Greek and one Austrian.
lA further 18 scraped passes, coming
out with ratios of five to six per cent.
STRESSFUL | EUS BANKS TESTED
GOLDMAN Sachs is expected to reveal
a sharp drop in revenues and a gen-
tler decline in pay in its second-quar-
ter results tomorrow.
Analysts have estimated that the
banks ratio of total compensation to
revenues will jump as slow trading
volumes eat away at the top line.
Sandler ONeill analyst Jeff Harte
forecasts revenues of $8.7bn (5.4bn)
down 27 per cent compared to
$11.9bn the first quarter with 45 per
cent, or $3.9bn put aside for pay,
including salaries, bonuses and other
benefits.
BernsteinResearchs Brad Hintz is
more pessimistic, predicting $7.48bn
in top line income and $3.26bn ear-
marked for compensation, a ratio of
44 per cent.
Investing in Goldman Sachs is not
for the faint of heart, says Hintz,
adding that regulatory pressures
could see the bank cut headcount
and shift from a model based on
investing its own capital by prop trad-
ing to one more focused on asset-
management for third parties.
Harte also predicts that compensa-
tion costs will have to come down:
We note that a three per cent reduc-
tion in the compensation ratio of its
trading business will allow Goldman
Sachs to beat its cost of capital in
these units under Basel III capital
rules, he says.
Overall, investment banks have had
a tough quarter due to the collapse of
their flow monster business model,
with investors hoarding cash instead
of trading.
Many analysts have cut their earn-
ings forecasts in the last two weeks as
banks have confirmed a steady drip
of news they will be forced to lay off
hundreds, if not thousands, of staff.
Goldman to
see pay and
revenues fall
ENTREPRENEUR Clive Cowdery,
founder of insurance consolidator
Resolution, has lodged a first-round
bid for 630 Lloyds Banking Group
branches being sold to appease com-
petition regulators, it is understood.
He is pursuing the branches
through a Guernsey-based company
which advises London-listed
Resolution on acquisitions, rather
than through Resolution. Resolution
declined to comment.
Cowdery, who has a strong follow-
ing among institutional investors
after his first project made millions
buying and merging closed life funds
in the UK, has focused mainly on the
insurance industry.
However, he has said there are con-
solidation opportunities across a
broad range of financial services sec-
tors. Resolution was among the bid-
ders for British mortgage bank
Bradford & Bingley in 2008, prior to its
collapse.
A handful of companies, including
Virgin Money and NBNK, the bank
buyout vehicle led by Lord Levene, had
made indicative bids by last weeks
deadline, according to sources
involved in the process. National
Australia Bank has not tabled a bid
but is assessing the situation.
Cowdery tables first-round
bid for 630 Lloyds branches
BY JULIET SAMUEL
BANKING

BY HARRY BANKS
BANKING

News
7 CITYA.M. 18 JULY 2011
Clive Cowdery used a Guernsey-based vehicle to make the approach Picture: REX
ANALYSIS l Goldman Sachs Group Inc
$
11 Jul 12Jul 13Jul 14Jul 15Jul
134
133
132
131
130
130.16
15 Jul
NEWS | IN BRIEF
French socialists turn hawkish
Frances two top Socialist leaders cast
themselves as tough on public finances
and the Eurozone debt crisis yesterday,
in a challenge to President Nicolas
Sarkozy ahead of an election next year.
Martine Aubry and Francois Hollande,
both candidates to run for the Socialists
in the 2012 presidential election, called
for radical action to deal with Eurozone
debt as bloc leaders prepared to meet
this week. Aubry, a former labour minis-
ter who was the architect behind
France's 35-hour working week, said
that if elected president she would stick
to the current government's aim of cut-
ting the deficit to an EU-imposed limit of
3 per cent of output in 2013.
C&W Worldwide boss faces revolt
Cable & Wireless Worldwide boss John
Pluthero is bracing himself for a stormy
showdown with shareholders at the trou-
bled telcos annual meeting on Thursday.
Pluthero, formerly chairman, recently
became chief executive after Jim Marsh
resigned following a string of profit
warnings and a plummeting share price.
But by making the switch, Pluthero is
entitled to a share award that could be
worth over 2m, much to the chagrin of
some shareholders who see it as a
reward for failure. Shares in the telco
have lost almost half their value in the
space of a year.
Correction
In our edition dated Friday 15 July we
quoted somebody we wrongly labelled
as Stuart Forbes of Lloyds Banking
Group in our City Views feature. The per-
son pictured was not Mr Forbes and the
comments did not reflect his views. We
apologise for the error.
TONY Hayward, the former chief
executive of BP, is considering a bid
for two major Russian oil producers
in a deal that could be worth around
8bn.
Vallares, Haywards investment
vehicle, has held early stage talks
with Bashneft, one of Russias biggest
oil producers, as well as Russneft, a
smaller rival, City A.Munderstands.
Both companies are part-owned by
Russian billionaire Vladimir
Yevtushenkovs holding company
AFK Sistema, a sprawling operation
with interests in some 200 compa-
nies.
Hayward is examining buying
Yevtushenkovs stakes in both compa-
nies in a move which would create
one of Russias largest independent
producers.
Bashneft is one of Russias top 10
oil companies with more than 1.25bn
barrels of proven reserves.
Yevtushenkovs stake in the company
is believed to be worth $1.5bn.
The joint-acquisition is just one of
several potential takeover targets
Hayward has been examining for his
cash shell Vallares, which raised
1.3bn on the London Stock Exchange
last month.
It also emerged last week that
Vallares has been considering an offer
for Genel Energy, one of the biggest
oil producers in northern Iraq.
Haywards co-partners include the
financier Nat Rothschild, who listed a
similar vehicle Vallar last year.
Vallares declined to comment on
the deal.
Vallares eyes
Russian deals
worth 8bn
GLOBAL consumer confidence fell in
the second quarter to its lowest level
in a year and a half as an uncertain
economic outlook, a deepening
Eurozone debt crisis and rising infla-
tion made people more cautious, a
survey revealed yesterday.
Consumer sentiment in the
United States was weaker than in
the second half of 2009 at the height
of the global recession, according to
Nielsens quarterly survey of global
consumers.
Globally, consumers plan to tight-
en their belts in coming months for
everything from stock investing to
buying clothes, taking holidays and
upgrading technology, after being
slightly less cautious over the past 12
months, the survey showed.
Of US consumers, 31 per cent said
they have no spare cash for discre-
tionary spending. This was the case
for 25 per cent of consumers in the
Middle East and Africa and 22 per
cent of Europeans.
Confidence dipped in China, due
to rising inflation, as well as in the
Middle East where an initial bounce
in consumer morale after social
uprisings in the first quarter gave
way to caution as the political out-
look became unclear and rising
prices curbed spending power.
Egypt and Saudi Arabia posted the
biggest falls from the first quarter in
Nielsens ranking of confidence in
56 countries worldwide.
Confidence was lowest in
Eurozone countries engulfed by
debt, with Greece lowest ranked.
Portugal, Ireland, Spain and Italy
were also in the bottom 10.
World Bank president
calls for global trade deal
WORLD Bank President Robert
Zoellick will today call on countries
to get out of their defensive positions
on trade and push for a broad agree-
ment that could help the struggling
global economy.
In a speech to the World Trade
Organisation that he is due to deliver
today in Geneva, Switzerland,
Zoellick will say he was disappointed
the global round of trade negotia-
tions, which he helped launch in
2001, might only deliver a deal much
smaller than originally envisaged.
A mini-deal wont do much for
global growth, which is my primary
concern, he will say. A copy of his
prepared remarks was released in
Washington.
I wont sugar coat it, Zoellick
states. Negotiators from key coun-
tries developed and developing let
themselves fold into defensive
crouches. Tactical ploys overwhelmed
strategic vision and leadership.
He will ask WTO members to
think big and double-down on a
far reaching global trade deal.
Trade negotiators agreed earlier
this year that a global deal to open
agricultural, manufacturing and serv-
ices markets was still out of reach.
International confidence
has fallen to 18-month low
BY KASMIRA JEFFORD
OIL & GAS

MECHEL looks set to be the next blue-

chip Russian firm to list on the
London Stock Exchange.
The group one of Russias biggest
steel miners is understood to be in
the early stages of planning a flota-
tion of around a quarter of its mining
subsidiary to raise up to 2.5bn.
The deal could value the division at
more than 10bn. The steel business,
which mines more than 6m tonnes of
the metal a year, is one of four Mechel
segments, the others comprising of
mining, ferroalloys and power.
It is thought the fundraising will
be used to bankroll a major metal-
industry acquisition.
The groups subsidiaries are located
in 12 regions of Russia, Kazakhstan,
USA, Romania, Bulgaria and
Lithuania.
Russian investment bank
Renaissance Capital and Morgan
Stanley have been hired as advisers.
Mechel follows Russian firm
Phosagros flotation on the LSE earli-
er this month.
Russias Mechel
mulls 2.5bn
London float
WORLD ECONOMICS

WORLD ECONOMY

News
8 CITYA.M. 18 JULY 2011
ADVISING Mechel on its potentially
transformative listing on the London
Stock Exchange, alongside Morgan
Stanley, is Russias leading independ-
ent investment bank Renaissance
Capital.
The bank, which specialises in deals
involving firms operating in Russia,
Central and Eastern Europe, Africa,
Asia, has seen a flurry of action fol-
lowing the trend of Russian firms
seeking foreign IPOs.
Renaissance was joint global coor-
dinator on Phosagros $538m
(337m) flotation earlier this year,
alongside Citigroup.
Equity sales director Jonathan
Williams was working on the listing
from Renaissances London offices,
while the banks deputy chief execu-
tive in Russia, Alexander Merzlenko,
was working on the float from
Moscow.
The IPO valued Phosagro at
$5.2bn, significantly lower than some
early analyst estimates of up to
$8.7bn.
ADVISERS: MECHEL
RENAISSANCE
GROUP
BY STEVE DINNEEN
COMMODITIES

l Mechel boss
Igor Zyuzin
hopes to raise
up to 2.5bn
by floating
part of his
mining arm
STRICKEN tour operator Thomas Cook
will sell off over 200m of assets to
shore up its balance sheet, after it last
week issued its third profit warning
in a year.
A source close to the firm told City
A.M. it was considering putting a
range of assets on the block, including
its stake in NATS, the air-traffic con-
troller; its Indian foreign exchange
business; and one of its European
offices.
The assets will be sold off over the
next six to eighteen months, the
source said. Travelex, which is trying
to beef up its consumer offering, is
understood to have emerged as an
early bidder for the forex business.
Thomas Cook put out a profit warn-
ing last week, after the political
upheaval in North Africa, rising fuel
costs and a lack of consumer confi-
dence hurt its profitability.
It reduced its forecasts for full-year
profit to 320m compared to previous
guidance of 380m, causing its shares
to plunge by over 25 per cent.
Some investors are agitating for
Thomas Cook to shut a significant
number of high street stores and focus
resources on the internet. But the
firm is unlikely to make a decision on
closures before the Competition
Commission rules on the merger of
its high street travel agents with the
Co-operative.
Thomas Cook
to sell 200m
of its assets
LAND Securities is close to starting
work on a number of shopping devel-
opment projects worth 275m,
despite tough economic conditions
still facing the retail sector.
Britains biggest property company
has lined up seven new projects in
south-east England and the Midlands
for retailers including Tesco and
Primark, that together will create
more than 1,000 jobs and attract
investment to those areas.
The developer has been granted
planning permission to start building
a 100,000 sq ft extension to a
Sainsburys in Wandsworth, south-
west London and a 70,000 sq ft
Primark store at its Westwood Cross
mall in Kent.
Other projects in the pipeline
include a development for Tesco in
Taplow, Berkshire and a 100,000 sq ft
extension to a retail park in Derby.
The move comes as several troubled
retailers including HMV and
Thorntons have been forced to close
hundreds of stores due to tighter con-
sumer spending and continued price
inflation.
A spokesperson for Land Securities,
however, said there is demand from
stronger retailers looking to expand.
Land Securities
to start 275m
of retail projects
BY DAVID CROW
CONSUMER

PROPERTY

News
CITYA.M. 18 JULY 2011 9
ANALYSIS l Thomas Cook Group PLC
p
11 Jul 12Jul 13Jul 14Jul 15Jul
130
120
110
100
90
80
70
70.45
15 Jul
Thomas Cook boss Manny Fontenla-Novoa is looking to sell 200m of the firms assets
LEGAL EAGLE SETS THE
PACE IN THE STANDARD
CHARTERED CITY RACE
CAN ANYBODY stop Emily Wicks of
Punter Southall?
Not content with fitting in extra
study on top of her long-hours day
job at the law firm, Wicks runs an
average of 80 miles a week and repre-
sents Great Britain at cross country.
So it was no surprise that the
trainee actuary won this years
Standard Chartered Great City Race
the Square Miles biggest corporate
challenge and Wickss favourite
event for the third year in a row,
completing the 5k course in 16 min-
utes and 50 seconds.
Wicks was a minute ahead of the
second-fastest female runner, Lara
Bromilow of HSBC, and close behind
the quickest male runners: Chris
Busaileh of Speechly Bircham, who
finished in 15 minutes and 35 sec-
onds, and Standard Chartereds Ben
Shearer, who tied in second place
with Paul Halford of Athletics Weekly
at 15 minutes and 48 seconds.
The pace-setters were among 4,500
more mortal runners from 400 City
firms who took part in last
Thursdays evening race to raise
funds for Seeing Is Believing, the
blindness charity backed by ambassa-
dor Sir Ranulph Fiennes (pictured
right, centre, with Paralympian Noel
Thatcher, left, and Standard
Chartereds CEO Richard Holmes).
Among their number was Joanna
Vowles of Charles Stanley, who was
part of the 25-strong team of Charles
Stanley runners that also included
her colleagues Alice Sharp, Rob
Brooke, Lee Downes and Matt Lovell.
Vowless more human running
time was 30 minutes not bad, con-
sidering she and Sharp (far right) had
done no training at all. We just
turned up on the day, Vowles told The
Capitalist. But the race actually went a
lot better than expected.
Left to right: Paralympian Noel Thatcher, ambassador Sir Ranulph Fiennes and Richard Holmes
MAN ABOUT TOWN
SPOTTED: John Tiner, the former chief
executive of the FSA, driving past The
Ritz in his Porsche 911 with the per-
sonalised number plate T1 NER.
How times have changed. It was
not so long ago that Tiner, who left
Emily Wicks
won the
Standard
Chartered
Great City
Race for the
third year in
a row, in 16
mins 50 secs
The Capitalist
10 CITYA.M. 18 JULY 2011
BILL OF THE WEEK
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
the regulator in 2009 to make serious
money in the private sector, was
reportedly so embarrassed by press
reports of his personalised Porsche
that he stowed it in the garage,
switching to a more modest Suzuki
for his public outings around town.
Looks like the Resolution chief
executive has managed to get over
those feelings of embarrassment
after presiding over the acquisitions
of Friends Provident and Axas UK
business. Or perhaps the Suzuki was
simply having its annual MOT. You
decide
TAKE THE HIGH ROAD
THEIR colleagues doubted whether
they would make it back alive.
But The Killik Six all crossed the
line in one piece after completing the
Artemis Great Kindrochit
Quadrathlon, swimming, running,
kayaking and cycling their way
around the Scottish Highlands to
raise almost 6,000 for Mercy Corps,
Marys Meals and The Gurkha Trust.
Starting with a 6am loch dip com-
parable to the Titanic passengers
being dispatched into the North
Atlantic, it wasnt an average day for
the Mayfair-based wealth managers,
but the final 35-mile bike ride was
almost a pleasure. Entertainingly,
Killiks Tim Shaw was so keen to finish
he forgot to unclip from his bike ped-
als and fell over as he crossed the line.
CATCH OF THE DAY
CONTRARY to popular belief, there
are still fish in the Thames as
proved by High Timber, which
claims its diners caught five fish in
50 minutes only last week.
The fishing expedition is a part of a
July promotion at the City restaurant,
which is giving any customers who
catch a fish a complimentary dish.
Not the fish they reel in using the
rods installed on the restaurants ter-
race though all captured species are
returned alive to the river but a
catch of the day course cooked by
head chef Justin Saunders.
Warm up: Alice Sharp and Joanna Vowles
STAYING in is the new going out
for one investment bank, which
entertained clients over a lunch for
eight in its boardroom, organised
by Sissi Fabulous Food (founders
Gregory and Sissi Schaad-Jackson
pictured above). The bank brought
in two chefs and a butler to pre-
pare and serve the three-course
lunch, spending over 500 on
sterling silver, fine china, crystal
and flowers and almost the same
again on the wine: two bottles of
top-end white Burgundy and two
bottles of vintage Margaux. As
The Capitalist reported on 12 July, this discreet new trend for
boardroom dining a way of avoiding being seen splashing out in
City restaurants is the Square Miles best-kept secret. For now
News
11 CITYA.M. 18 JULY 2011
THE United States has ended talks
with Switzerland aimed at settling a
row over investigations into Swiss
banks accused of helping Americans
dodge taxes, it is understood.
The US sent Berne a letter two weeks
ago saying it had no interest in a glob-
al settlement to end the tax dispute.
An announcement on Friday that
Credit Suisse was being targeted in a
broader investigation into banks sus-
pected of helping Americans evade
taxes was seen as an attempt to
increase pressure on Switzerland in
the talks.
Switzerland agreed in 2009 to weak-
en its strict bank secrecy and hand
over data of clients suspected of using
Swiss accounts to dodge taxes, to settle
a US investigation of its biggest bank
UBS, which also paid a fine of $780m
in 2009 to avoid criminal charges.
Last month, sources said the talks
had become bogged down due to Swiss
insistence that any deal leave Swiss
bankers free from prosecution in the
US. Any deal would involve the US
dropping its investigation in return for
the banks paying a fine, exiting their
undeclared offshore banking business-
es for Americans, and turning over
client names to the Internal Revenue
Service.
US abandons tax deal talks with Swiss
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BRITISH AMERICAN TOBACCO (BAT)
is in ongoing talks to buy Bulgarias
state-owned tobacco company, in a
deal worth in the region of 100m.
The worlds second largest cigarette
producer, whose brands include
Dunhill and Lucky Strikes, is one of
three companies that have so far sub-
mitted tender offers for Bulgartabac
holding, which was put up for sale in
April.
According to the countrys
Privatization Agency, which is han-
dling the sale, the two other firms
vying for the 80 per cent stake are BT
Invest, an investment fund backed by
Russias second biggest bank VTB, and
CB Family Office, a consultancy regis-
tered in Austria.
If BAT wins the bid, it would mark
the firms second acquisition since
Nicandro Durante took over as chief
executive in March. In May, Durante
announced the purchase of
Protabaco, a Colombian cigarette pro-
ducer, for 280m.
The deadline for submitting fully-
funded bids is the end of August. The
successful bidder is then likely to be
announced the following month.
BAT eyes Bulgarian bid
BY KASMIRA JEFFORD
CONSUMER

CANDOVER Investment, the private

equity firm which became a high-pro-
file casualty of the credit crisis, has
launched a 500m auction to sell off
its biggest investment.
Investors managing the remains of
Candover will partially unwind Expro
International, the oil services group it
bought in 2008 just months before
failing.
Goldman Sachs, which invested
with Candover on the Expro deal, has
been hired to sell its 500m subsea
power and connection systems divi-
sion.
Candover was one of many private
equity firms that fell victim to the
economic crisis, as portfolio compa-
nies overloaded with debt struggled
to meet repayments.
Once considered the gold-standard
of private equity firms, Candover par-
ticipated in deals such as the merger
of Gala and Coral Eurobet to create
Britains leading gaming firm. It sub-
sequently made a 40 per cent loss on
Gala Coral after creditors took control
last year.
The firm decided to wind itself up
in August last year after failing to sell
the business, ending months of
uncertainty over the future of the pri-
vate equity house.
Its buyout team, led by John Arlney,
spun out a new vehicle, Arle Capital,
to manage its companies, leaving the
listed investment company to gradu-
ally return cash to investors.
The spin-out firm led its first deal
in May, helping engineering group
Stork to buy oilfield services firm RBG
from 3i.
It also emerged last night that Arle
is poised to sell two of its largest port-
folio companies, Capital Safety, the
UK-based safety harness maker, and
Qioptiq, a French optical component
maker.
Candover to
launch a
500m sale
ENGINEERING group Charter
International is said to be considering
a break-up plan to stave off an
unwanted takeover approach.
Goldman Sachs is thought to be
looking into a sale or demerger of
Howden, the subsidiary that accounts
for around a third of Charters 1.7bn
revenues.
The plan follows Charters refusal
on Friday to accept an improved offer
from manufacturing buyout firm
Melrose. It valued the British industri-
al toolmaker at 1.4bn.
Charters board said the offer was
opportunistic and undervalues the
company and its prospects.
The latest bid, pitched at 840p per
share, is eight per cent higher than an
earlier offer from Melrose, but is still
at the level Charter shares were trad-
ing at in May, before falling sales and
management issues hit the stock.
Analysts have said Charter could be
worth up to 900p per share.
On Friday, Charter also named
Gareth Williams as its new chief exec-
utive with the 49-year-old saying in a
statement he would explore a full
range of strategic options to... max-
imise value for shareholders.
Williams replaces Mark Foster, who
resigned the post in June shortly after
the company announced a profit
warning.
Charter in
plan to stop
takeover
FERREX, an African focused iron ore
and manganese development firm,
has listed on Londons alternative
investment market (AIM) in a deal
which will value the company at
15.5m.
The firm, which specialises in
minerals primarily used to produce
steel, raised 2m by listing new
shares at 3p apiece today.
The money raised will be used
expand its portfolio of iron ore and
manganese projects in South Africa
and Mozambique, where most of its
developments are based.
Our mid-term production hori-
zon ideally positions Ferrex to capi-
talise on the increasing world
demand for steel, which is the pri-
mary market for iron ore and man-
ganese, said chief executive Dave
Reeves.
Iron ore firm lists on AIM
MINING

BAT chief executive Nicandro Durante wants the firm to buy Bulgarias Bulartabac
BY JENNY FORSYTH
M&A

BY HARRY BANKS
BANKING

BY KASMIRA JEFFORD
PRIVATE EQUITY

ANALYSIS l Charter International Plc

p
11 Jul 12Jul 13Jul 14Jul 15Jul
860
850
840
830
820
810
800
790
819.00
15 Jul
News
12 CITYA.M. 18 JULY 2011
Banks need ring-fencing rules to be clarified
W
ITH the scandals at News
International and the latest
threats of European eco-
nomic meltdown dominat-
ing the headlines, the responses of
UK-based banks to the Independent
Commission on Bankings interim
report came in under the radar.
But even in a quiet news week, I
doubt that these responses would
have made the front pages and
thats a pity, because some important
points were made.
It turns out that the banks are con-
cerned about ring-fencing big sur-
prise although these concerns
remain rather ill-defined.
However, until the ICB provides
something more specific on what
exactly will be ring-fenced, the banks
cannot be expected to provide
absolute clarity themselves, or to
move on from arguments about com-
petitiveness and economic impacts.
Whatever the nature of the final
proposal, it is likely that the ability of
UK-based banks to boost growth
would be restricted this is the price
that must be paid if the government
decides such measures are necessary
to ensure stability.
There can be little doubt that erect-
ing such ring-fences would cost banks
significant amounts costs that
could be transferred to the consumer.
And of course there is the question
of scope and applicability. Would UK-
based banks be placed at a competi-
tive disadvantage and, if so, would
they consider moving overseas?
Not only would this result in a drop
in tax revenues but, in order to pro-
duce greater stability in a globally
interconnected marketplace, we need
rules that cannot be circumvented
simply by relocating.
It is not just the banks who have
expressed concern American econo-
mist Paul Volcker last week added his
voice to the chorus of discontent
whilst speaking at Cass Business
School. His major criticism of the ICB
proposals is they fail to provide any
solution to the overriding question
of how to deal with institutions
deemed too big to fail an issue on
which there has already been signifi-
cant progress through bodies such as
G20 and the Basel Committee on
Banking Supervision.
With steps already being taken at
an international level and serious
doubts being cast over the effective-
ness and indeed practicability of ring-
fencing UK-based banks, government
could have a difficult balance to
strike between enhancing market sta-
bility whilst also safeguarding the
competitive position of UK-based
banks and continuing to promote
growth.
Stuart Fraser is the Policy Chairman at the
City of London Corporation
CITY COMMENT
STUART FRASER
NEWS | IN BRIEF
Barclays to axe jobs in India
Barclays has cut jobs in India as a result
of merging the client relationship teams
of its commercial and investment bank-
ing units, a company spokeswoman said
yesterday. Barclays Capital, the invest-
ment banking unit of the UK-based bank,
and the company's commercial banking
division, are combining the teams that
focus on servicing corporate clients in
India, Clare Williams, a Hong Kong-based
spokeswoman for Barclays stated. Last
week a small number were informed that
as a result of the decision to combine the
two teams that, regrettably, their jobs
fell away," Williams said, without specify-
ing how many. The bank plans to axe 50
jobs in India as it narrows its focus on
large companies there, according to earli-
er reports.
HOUSE prices have dropped for the
first time this year, according to a well-
regarded Rightmove index released
this morning.
Prices fell 1.6 per cent across the UK
in July, with even Londons houses
experiencing a 1.4 per cent dip, the fig-
ures showed.
In June, the average residential
property in the capital hit an all time
asking price high of 438,622. Yet this
month almost 6,000 has been shed
from the average asking price, as sum-
mer sellers are forced to attract the
attention of holiday-distracted buy-
ers.
Despite the fall in July, Londons
prices remain 5.8 per cent higher for
the year so far.
And Londons prices were still 2.5
per cent higher this month than at the
same time last year. However across
the UK as a whole, prices were up just
0.1 per cent annualised, according to
Rightmoves figures.
The average house throughout the
country is priced at 236,597.
Seven out of 10 residential proper-
ties put on the market this year
remain unsold, Rightmove said, indi-
cating that many equity poor sellers
are unwilling or unable to reduce
their prices further.
While the number of new sellers is
down 12 per cent this month com-
pared to one year ago, potentially hold-
ing up prices, the drop in prices over
the last four years has shattered sever-
al housing market myths, Rightmove
said.
Retail price inflation outstripped
property prices by 14 per cent over the
last four years, improving buyer afford-
ability but undermining perception of
bricks and mortar as a hedge against
inflation, the report stated.
While Londons market has signifi-
cantly outperformed the rest of the
country in 2011, todays report sug-
gests that the price spikes could level
out.
Agents report more offers below
the asking price, said Rightmoves
Miles Shipside, so this months drop
is an early warning that prices may be
testing their upper limits.
The survey also suggests that prices
should be set at realistic levels when a
property is first put on the market, at
least for internet listing. The first week
attracts nearly twice the number of
average hits (100) as the second week
(55), Rightmoves research found.
SHOPPERS internet searches from
mobile phones and tablets more
than trebled in the second quarter of
the year, as booming online sales
offer some hope to the UKs retail sec-
tor.
Mobile retail searches were up 216
per cent annualised, driving the total
number of retail searches up by 27
per cent.
Volumes were down in April as
the warm weather and bank holidays
took their toll, but picked up again in
May with the return of cooler weath-
er. However, mobile searches
remained constant throughout the
quarter, explained Peter Fitzgerald
from Google, which conducted the
research alongside the British Retail
Consortium.
Half of all internet searches for
retail came from London and the
south, according to figures for the
three months to June.
And there were signs of a stronger
summer in the capital from a sepa-
rate report released today by the New
West End Company.
High street sales in Londons west
end rocketed by 11 per cent in June
compared to a year earlier, according
to the group.
The surprise result was in stark
contrast to reports from across the
UK as a whole, where retail sales
sank 0.6 per cent last month.
A summer surge of around
600,000 tourists will further boost
sales in London, the group said.
Mobile phone internet searches more
than treble, boosting UKs retail sector
PAY growth in Britains factories
remained steady at 2.5 per cent in the
three months to June, industry group
EEF announced today.
Whilst there is undoubted pres-
sure to give higher settlements, there
is an equal dose of realism amongst
companies and their employees in
response to economic uncertainty
and competitive pressures, com-
mented EEFs chief economist Lee
Hopley.
The proportion of pay settlements
resulting in a pay freeze dropped
from 13.7 per cent in the quarter to
May, to 11.9 per cent in the quarter to
June.
However, a higher proportion (17.4
per cent) of settlements were for less
than two per cent more pay, com-
pared to 16.3 per cent in the previous
months results.
The amount of pay rises for three
per cent or more continued to drift
upwards to almost one in five settle-
ments, EEF reported.
Wage growth levels out
in manufacturing sector
UK ECONOMY

WORRIES over the Eurozone debt cri-

sis are holding back business invest-
ment in the UK, prompting the Ernst
& Young Item Club to lower its growth
forecast for this year and next.
Item expects growth of 1.4 per cent
this year, sharply down from its April
forecast of 1.8 per cent. The groups
forecast for 2012, meanwhile, is down
0.1 per cent, to 2.2 per cent.
The risks to the world economy
and the Eurozone are plain to see,
starting with the Greek default which
hangs like the sword of Damocles over
Europe, threatening a domino effect
on Portugal and Ireland, followed per-
haps by Spain and Italy, Item Club
economist Peter Spencer said today.
If there is a soft landing in China,
the Greek crisis is resolved and noth-
ing else goes wrong in the world econ-
omy, then world output growth
should manage another four per cent
this year, Item expects. Yet it warned:
its a big if.
Despite the threats to growth, it is
too early to consider Plan B or more
quantitative easing, Spencer states.
Even if some of the risks were to
materialise, the impact on exports
would be balanced by the benefits of
lower commodity prices, Spencer
said.
Investment is still on course to
increase by eight per cent this year and
12 per cent next year, Item has calcu-
lated.
UK growth
hit by doubt
in Eurozone
WORLD ECONOMY

GOVERNMENT sector employees are

far more likely to launch legal appeals
against their employers than workers
in the commercial sector, according
to new research released today.
While only one in four British
workers are employed by the state or
in the non-profit sector, they account
for around 42 per cent of all legal
claims.
And the proportion of employment
appeals launched by public sector
staff has shot up by 24 per cent in the
last year.
The public sector is already bur-
dened by a disproportionately high
number of employment claims and
the problem could get worse as cost
and efficiency savings are put in
place, said Louise Holder of law firm
EMW, which conducted the research.
The public sector is expected to
start putting in place efficiency drives
with performance targets that are
likely to be tougher and monitored
more rigorously, Holder added.
Some employees who are not used
to this could see this as a form of bul-
lying while those who are made
redundant could file for unfair dis-
missal.
And having to work harder for less
money and perks could create stress
and resentment, EMW said, leading
to even more appeals.
Around 400,000 government sector
jobs will be cut by the end of this par-
liamentary term, according to the
Office for Budget Responsibility (OBR)
-- the independent fiscal watchdog
launched last year. The cuts will be
offset by 1.3m new private sector jobs
created by 2015, the OBR has also cal-
culated.
The plans will reduce state employ-
ment back to a level last seen in 2001-
02, according to the Centre for Policy
Studies.
Public sector set for wave of employment appeals
BY JULIAN HARRIS
EMPLOYMENT

House prices
fall in London
and rest of UK
BY JULIAN HARRIS
HOUSING

BY JULIAN HARRIS
RETAIL

News
13 CITYA.M. 18 JULY 2011
OBAMA SEEKS GRAND DEBT COMPROMISE
US PRESIDENT Barack Obama will hold out for a grand compromise over the countrys
deficit reduction and debt ceiling talks this week, despite ongoing disagreements. White
House budget director Jack Lew yesterday moved to reassure markets there was still time
for a comprehensive resolution between Democrats and Republicans. Lew is confident
that responsible members of Congress will not allow the US to default. Picture: GETTY
ANALYSIS l Public sector workers are far more likely to launch employment appeals
%
Not for profit sector Public Sector Private Sector
80%
70%
60%
50%
40%
30%
20%
10%
0%
%of Employment claims
%of Workforce
75%
58.1 %
22.4%
37.2%
2.6%
4.7%
News
14 CITYA.M. 18 JULY 2011
Alterian
The customer engagement firm has
appointed Heath Davies as chief execu-
tive and Phil Cartmell as non-executive
chairman. Davies, who replaces David
Eldridge, was most recently joint chief
executive of Sword Group, and Cartmell
is executive chairman of Corac Group.
Renaissance Capital
The investment bank has appointed
Anton Cherny, most recently chief invest-
ment officer for the Interros Group, as
managing director, head of business
development, based in London. The bank
has also hired Jonathan Segal, formerly
of Barclays Capital, as managing direc-
tor, global head of debt capital markets
and James Etherington, formerly of RBS
and Morgan Stanley, as director, head of
UK equity capital markets.
+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
Anesco
The energy efficiency solutions firm has appoint-
ed Hedley Major as chief financial officer to over-
see all financial operations of the company.
Hedley previously worked for software company
System C, where he negotiated the firms acquisi-
tion by McKesso. Prior to that, Major was finance
director at Octopus Investments. Anescos princi-
pal investors are Scottish & Southern Energy and
private equity fund manager Zouk.
headline sponsor champagne reception sponsor
official venue partner
sponsors
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BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
p
25May 14Jun 04Jul 05May
1,100
1,080
1,060
1,040
1,020
1,000
1,087.00
15 Jul
ANALYSIS l Associated british foods ASSOCIATED BRITISH FOODS
Nomura said the recent run of group earn-
ings downgrades looks to be coming to an
end. It said like-for-like sales growth of
between 2-3 per cent in ABFs retail division
and favourable EU sugar pricing would offset
weakness in its ingredients division. It said it
was optimistic about a recovery in 2012
earnings. It has a buy rating on the stock and
a target price of 1180p.
p
25May 14Jun 04Jul 05May
155
145
150
140
135
125
130
120
115
ANALYSIS l Kesa
138.50
15 July
KESA
UBS said it was sceptical about a much-dis-
cussed demerger of Comet from the rest of
Kesa, given there are no obvious buyers of
the British chain. However, it said the medi-
um-term downside risk was limited: if noth-
ing changes and trading weakens further, the
potential for a private equity bid or restruc-
turing increases. The broker increased its 12-
month price target from 135p to 140p.
CITY MOVES | WHOS SWITCHING JOBS
Edited by Harriet Dennys
Stress test relief
to provide a lift to
markets on open
A
ND the winner is... direction
for stocks this morning will be
driven by the results of the
European bank stress tests,
which were released at 5pm on
Friday, after European stock markets
closed.
A grand total of eight banks failed
the tests, but that number was well
below the worst fears of some ana-
lysts who had pitched the possible
failure rate at as many as fifteen.
GFT quotes two-way prices on stock
indices around the clock, even when
the underlying markets are closed.
The FTSE 100 index is called to open
up 18 points at 5,861. The German
DAX is forecast to open up 23 points
at 7,243, and the French CAC 40 is
quoted to open up 14 points at 3,740.
So we can expect a relief bounce
on the open this morning, as it was
caution surrounding the impending
stress test results which had kept
stocks on the back foot on Friday.
Should sentiment want to instead
focus on negatives however, we did
have the latest news on UK housing
from Rightmove released at the week-
end, which show that asking prices
fell for the first time this year in July,
down 1.6 per cent from the previous
month. Another sobering statement
was that seven out of ten properties
listed in 2011 remain up for sale.
The road ahead for traders this
week is far from without additional
hurdles. The on-going US debt ceiling
showdown will continue to niggle the
markets, although ultimately there
still seems to be the belief that this is
a political wrangle which will eventu-
ally sort itself out. Of more impact
this week will likely be the realities of
another slew of second quarter earn-
ings from US heavyweights including
Apple, Intel, IBM, Microsoft, Yahoo,
Goldman Sachs, Bank of America,
plus Dow components General
Electric, Caterpillar and AT&T.
Trading in BSkyB has seen high vol-
umes on CFDs and spreadbets since
the hacking scandal first emerged,
and traders will be digesting the lat-
est developments from the weekend.
We would expect BSkyB shares to
open higher this morning, continu-
ing in the momentum seen on Friday
as investors play the BP bounce, in
the belief that the share price repre-
sents overall good value following a
short term blip, and that a deal either
with News International or another
bidder will still emerge at some stage.
Martin Slaney is director of global deal-
ing operations for GFT.
MARTIN ON
THE MARKETS
MARTIN SLANEY
p
18Apr 12May 2Jun 22Jun 12Jul
6,100
5,700
5,800
5,900
6,000
ANALYSIS l FTSE
5,843.66
15 Jul
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COMPANIES
l Today, Iceland Foods
announces. Investors will
hope it doesnt get frosty
results after news that
Morrison may bid for some
of its individual stores.
l IG reports tomorrow.
The spread betting
provider could soon be in
the FTSE 100.
l On Thursday, the busi-
ness process outsourcing
company Capita will
announce. It has been list-
ed on the London Stock
Exchange since 1991.
l On Friday, Vodafone will
announce. The London
headquartered global
telecommunications com-
pany will be hoping to
receive strong signals of
growth.
ECONOMICS
l Tomorrow, the Bank of
Canada will make a state-
ment on rates. It will also
release its monetary policy
report, with the press con-
ference taking place later.
l Also tomorrow, Japan
will release its monetary
policy statement and deci-
sion on interest rates.
l On Wednesday, the
MPC will publish minutes
of the last meeting, includ-
ing the latest asset pur-
chase facility votes.
l On Thursday, UK public
sector net borrowing and
retail sales will be
released. On the same day,
the US Department of
Labor will publish statis-
tics on unemployment
claims.
POLITICS
l Tomorrow, the culture,
media and sport commit-
tee is anticipating an
appearance by Rupert and
James Murdoch to give
evidence over phone hack-
ing. It is unclear whether
former News International
chief executive Rebekah
Brooks will appear, follow-
ing her arrest yesterday.
l Wednesday, if not
before, is seen as the likely
date for yet another crisis
meeting of the Eurozone
countries. The officials
must be getting sick of the
sight of each other.
l Talking of crises, treas-
ury secretary Tim Geithner
wants a deal on the US
debt limit to be reached
this week. He said: Failure
is not an option.
ing England.
At home, England is undoubtedly
a match for anyone, but it only beat
Sri Lanka 1-0, with the level of its
dominance directly proportional to
the more unsettled weather condi-
tions. The Three Lions prospered
when it rained and under overcast
skies, but a sunnier and warmer
July and August would be more of
a leveller.
You can only beat what is in
front of you, but it must be said
that Englands fantastic run
includes two series wins against
Bangladesh, which is nothing less
than would be expected. And there
can be no denying that the
Australian sides England faced in the
winter just gone and the summer of
2009 were hardly vintage ones.
FIRST-CLASS OPPOSITION
A series against India will be the acid
test as to how good England really is.
It faces a team boasting an even
longer undefeated spell. India last
lost a series when falling 2-1 during a
three match tour of Sri Lanka in July
and August 2008, since when it has
beaten England 1-0 over two Tests in
winter 2008.
That is not the only psychological
advantage the visitor can lay claim
to. Duncan Fletcher was the man
who turned Englands fortunes
around when he became coach in
1999. He lifted the side from the bot-
tom of the Test rankings to third
place and was in charge of the 2005
Ashes winning side, providing the
platform from which the Three Lions
would continue to flourish. Fletcher
is now coach of India, having suc-
ceeded Gary Kirsten in April of this
year.
Fletchers inside knowledge of the
England players and set-up will be of
undoubted benefit and, with his side
in such excellent condition, there
looks sufficient incentive to sell
Englands series supremacy with
Sporting Index. The market awards a
team 10 points for winning the series
and five points per match won by,
therefore the maximum total is 30
and the minimum is zero. Sporting
Index traders can be expected to
trade England as favourite at around
4-7. Sellers of its supremacy would
profit from any result other than an
England win by keeping both the
draw and India win onside.
T
HESE are halcyon days for the
England cricket team. Its excel-
lent run has been a very
rewarding one for the Barmy
Armys supporters and for spread
betters who have got with the team
along the way.
With a huge selection of volatile
markets and a wide range of differ-
ent scores recorded, cricket is the per-
fect sport for the number-crunching
world of sports spread betting. The
nature of spread betting means that
profits and losses are maximised
by how right or wrong you are, so it
pays to be informed.
Andrew Strausss team has not
been defeated in a Test series since a
tour of the West Indies almost two
and a half years ago and the scrap-
book is bursting with achievements.
It claimed an honourable draw in
South Africa and has otherwise beat-
en all comers, including Australia
home and away, securing back-to-
back Ashes victories.
However, there is one name omi-
nously missing from its roll call of
victories: India. It is Englands oppo-
nent for a four match Test series
which begins on Thursday at Lords
and there is much to ponder for
spread betters and plenty more
facts to know.
It has been 15 years since
England managed a Test
series triumph against
this particular adversary
and India visits as the
worlds top-ranked side. Bookmakers
have installed the host as favourite,
but there is an argument that
spread betters could have the
chance to pull off a profit by oppos-
Catch extra profits swing trading
with a pitch on Indias cricket tour
These will be testing times for
England as it faces Mahendra
Dhonis men, writes Ollie Drew
15
Wealth Management | Spread Betting
Every batsman will
want to hit a centu-
ry and get on the
honours boards at
Lords (right); Sachin
Tendulkar (below),
the little master,
could deal England a
series of blows
Pictures: PA:
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that exceed your initial deposit
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0.8pts
FIXED SPREADS
EURUSD, UK100, US30
16
Wealth Management
CITYA.M. 18 JULY 2011
LON GD ONCE FIX AM...........1578.50 -14.00
SILVER LDN FIX AM ..................38.98 0.35
MAPLE LEAF 1 OZ ....................65.50 0.00
LON PLATINUM AM................1754.00 -16.00
LON PALLADIUM AM...............774.00 -11.00
ALUMINIUM CASH .................2476.00 26.00
COPPER CASH ......................9654.50 -3.50
LEAD CASH...........................2686.00 24.50
NICKEL CASH......................23830.00 125.00
TIN CASH.............................27395.00 795.00
ZINC CASH ............................2338.50 6.50
BRENT SPOT INDEX................118.34 0.05
SOYA .....................................1382.00 -5.00
COCOA..................................3156.00 -24.00
COFFEE...................................257.35 -5.45
KRUG.....................................1646.30 4.10
WHEAT ....................................165.00 -0.82
AIR LIQUIDE........................................94.60 -0.44 100.65 80.00
ALLIANZ..............................................89.39 -0.62 108.85 79.46
ALSTOM ..............................................40.01 -0.26 45.32 30.78
ANHEUS-BUSCH INBEV ....................39.28 0.05 46.33 38.32
ARCELORMITTAL...............................22.66 -0.23 28.55 20.76
AXA......................................................13.64 -0.29 16.16 10.88
BANCO SANTANDER...........................7.26 -0.09 10.23 6.98
BASF SE..............................................67.91 -0.59 70.22 40.74
BAYER.................................................55.50 0.60 59.44 43.27
BBVA......................................................7.20 -0.11 10.71 6.75
BMW ....................................................72.67 1.67 72.74 39.96
BNP PARIBAS.....................................45.28 -0.77 59.93 43.86
CARREFOUR ......................................21.76 -0.06 36.06 21.33
CREDIT AGRICOLE..............................8.49 -0.26 12.92 8.20
CRH PLC .............................................13.70 -0.10 17.40 11.51
DAIMLER.............................................53.27 0.01 59.09 37.03
DANONE..............................................50.86 -0.07 53.16 41.00
DEUTSCHE BANK..............................37.15 -0.55 51.61 35.93
DEUTSCHE BOERSE .........................54.01 1.01 62.48 46.33
DEUTSCHE TELEKOM.......................10.26 0.01 11.38 9.50
E.ON.....................................................18.50 -0.21 25.54 18.25
ENEL......................................................4.02 -0.08 4.86 3.54
ENI .......................................................15.45 -0.13 18.66 14.95
FRANCE TELECOM............................13.77 -0.12 17.45 13.56
GDF SUEZ ...........................................22.92 -0.31 30.05 22.81
GENERALI ASS...................................13.07 -0.22 17.05 12.18
IBERDROLA..........................................5.48 -0.07 6.50 4.86
ING GROEP CVA...................................7.61 -0.18 9.50 6.35
INTESA SANPAOLO.............................1.58 -0.02 2.53 1.41
KON.PHILIPS ELECTR.......................17.37 0.14 26.43 15.56
L'OREAL..............................................84.40 -0.38 91.24 75.03
LVMH..................................................124.50 -0.20 129.95 87.53
MUNICH RE.......................................101.05 -0.05 126.00 98.78
NOKIA....................................................3.93 -0.06 8.49 3.91
REPSOL YPF.......................................21.33 -0.41 24.90 17.21
RWE.....................................................35.53 -0.32 56.49 34.77
SAINT-GOBAIN...................................41.36 -0.38 47.64 27.81
SANOFI ................................................55.43 0.73 56.82 44.01
SAP......................................................40.80 -0.06 46.15 34.13
SCHNEIDER ELECTRIC...................104.15 -2.30 123.65 81.40
SIEMENS .............................................93.05 -0.40 99.39 70.02
SOCIETE GENERALE.........................34.70 -0.82 52.70 34.55
TELECOM ITALIA..................................0.86 -0.01 1.16 0.80
TELEFONICA ......................................15.62 -0.21 19.69 15.07
TOTAL..................................................38.42 -0.18 44.55 36.23
UNIBAIL-RODAMCO SE...................153.30 -0.40 162.95 117.34
UNICREDIT............................................1.21 -0.03 2.24 1.06
UNILEVER CVA...................................22.72 -0.14 24.11 20.68
VINCI ....................................................39.90 -0.59 45.48 33.38
VIVENDI ...............................................17.01 0.01 22.07 16.87
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5843.66 -3.29 -0.06
FTSE 250 INDEX. . . . . . . . 11746.78 -19.78 -0.17
FTSE UK ALL SHARE . . . . 3045.51 -1.95 -0.06
FTSE AIMALL SH . . . . . . . . 874.96 -1.35 -0.15
DOWJONES INDUS 30 . . 12479.73 42.61 0.34
S&P 500 . . . . . . . . . . . . . . . 1316.14 7.27 0.56
NASDAQ COMPOSITE . . . 2789.80 27.13 0.98
FTSEUROFIRST 300 . . . . . 1086.90 -2.45 -0.22
NIKKEI 225 AVERAGE. . . . 9974.47 38.35 0.39
DAX 30 PERFORMANCE. . 7220.12 5.38 0.07
CAC 40 . . . . . . . . . . . . . . . . 3726.59 -24.64 -0.66
SHANGHAI SE INDEX . . . . 2820.17 9.73 0.35
HANG SENG. . . . . . . . . . . 21875.38 -64.82 -0.30
S&P/ASX 20 INDEX . . . . . . 2685.70 -12.00 -0.44
ASX ALL ORDINARIES . . . 4542.70 -18.60 -0.41
BOVESPA SAO PAOLO. . 59478.01 -201.34 -0.34
ISEQ OVERALL INDEX . . . 2861.69 -28.66 -0.99
STI . . . . . . . . . . . . . . . . . . . . 3084.24 -4.46 -0.14
IGBM. . . . . . . . . . . . . . . . . . . 961.38 -11.52 -1.18
SWISS MARKET INDEX. . . 5938.06 -42.91 -0.72
Price Chg %chg
3M........................................................95.47 0.49 98.19 78.40
ABBOTT LABS ...................................53.04 -0.12 54.24 44.59
ALCOA ................................................15.48 0.02 18.47 9.92
ALTRIA GROUP..................................26.69 -0.16 28.13 21.11
AMAZON.COM..................................212.87 2.49 218.32 105.80
AMERICAN EXPRESS........................51.81 0.43 53.80 37.33
AMGEN INC.........................................55.05 -0.63 61.53 50.34
APPLE...............................................364.92 7.15 365.00 236.78
AT&T....................................................30.31 -0.27 31.94 24.50
BANK OF AMERICA...........................10.06 -0.01 15.72 10.02
BERKSHIRE HATAW B.......................75.36 -0.74 87.65 73.23
BOEING CO.........................................71.28 0.09 80.65 59.48
BRISTOL MYERS SQUI ......................28.97 -0.13 29.54 20.05
CATERPILLAR..................................109.36 1.78 116.55 63.34
CHEVRON.........................................106.19 1.52 109.94 70.96
CISCO SYSTEMS................................15.59 0.16 26.00 14.78
CITIGROUP.........................................38.38 -0.64 51.50 36.30
COCA-COLA.......................................67.53 -0.14 68.89 51.92
COLGATE PALMOLIVE......................89.01 1.93 89.36 73.12
CONOCOPHILLIPS.............................76.42 0.81 81.80 50.80
DU PONT(EI) DE NMR........................54.09 0.27 57.00 35.61
EMC CORP..........................................26.81 -0.01 28.73 17.90
EXXON MOBIL....................................83.00 0.76 88.23 57.60
GENERAL ELECTRIC.........................18.41 -0.12 21.65 14.25
GOOGLE A........................................597.62 68.68 642.96 448.00
HEWLETT PACKARD.........................35.09 -0.04 49.39 33.95
HOME DEPOT.....................................35.91 -0.05 39.38 26.62
IBM.....................................................175.54 1.31 177.77 122.28
INTEL CORP .......................................22.37 0.10 26.78 17.60
J.P.MORGAN CHASE.........................39.98 -0.37 48.36 35.55
JOHNSON & JOHNSON.....................67.45 -0.21 68.05 56.86
KRAFT FOODS A................................35.37 0.00 36.02 24.30
MC DONALD'S CORP ........................85.48 -0.33 86.46 68.59
MERCK AND CO. NEW......................35.93 -0.38 37.68 31.06
MICROSOFT........................................26.78 0.31 29.46 23.32
OCCID. PETROLEUM.......................105.34 1.98 117.89 72.13
ORACLE CORP...................................32.09 0.04 36.50 21.66
PEPSICO.............................................68.53 -0.07 71.89 61.71
PFIZER ................................................19.75 -0.16 21.45 14.39
PHILIP MORRIS INTL .........................66.93 0.51 71.75 48.96
PROCTER AND GAMBLE ..................64.83 0.23 67.72 56.57
QUALCOMM INC ................................54.96 0.04 59.84 35.74
SCHLUMBERGER ..............................87.99 2.07 95.64 52.91
TRAVELERS CIES..............................57.90 0.17 64.17 48.46
UNITED TECHNOLOGIE ....................88.32 0.50 91.83 64.57
UNITEDHEALTH GROUP...................51.97 -0.30 53.50 29.78
VERIZON COMMS ..............................36.82 -0.06 38.95 26.41
WAL-MART STORES..........................53.63 0.00 57.90 49.09
WALT DISNEY CO ..............................39.27 -0.31 44.34 31.55
WELLS FARGO & CO.........................27.18 -0.10 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 ..................1.410 -0.01
LIBOR Euro - 12 months ................2.164 0.00
LIBOR USD - overnight...................0.123 0.00
LIBOR USD - 12 months.................0.743 0.00
HaIifax mortgage rate .....................3.500 0.00
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.000 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................4.020 0.03
European repo rate.........................1.353 -0.01
Euro Euribor ....................................1.461 0.00
The vix index ...................................20.65 -0.23
The baItic dry index ........................1.367 -0.01
Markit iBoxx...................................222.32 0.10
Markit iTraxx....................................95.06 0.00
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.4134 0.0012
C/ 0.8771 0.0008
C/ 111.74 0.3270
/C 1.1398 0.0017
/$ 1.6117 0.0029
/ 127.42 0.3054
FTSE 100
5843.66
-3.29
FTSE 250
11746.78
-19.78
FTSE ALLSHARE
3045.51
-1.95
DOW
12479.73
42.61
NASDAQ
2789.80
27.13
S&P 500
1316.14
7.27
RPC Group . . . . . . . .348.9 -6.0 384.8 202.2
Smiths Group . . . . .1157.0 -22.0 1429.0 1089.0
Brown (N.) Group . . .270.9 -0.3 311.2 221.0
Carpetright . . . . . . . . .590.0 9.5 835.5 560.5
Debenhams . . . . . . . . .65.5 -0.3 77.4 56.1
Dignity . . . . . . . . . . . .799.0 10.5 812.0 633.0
Dixons RetaiI . . . . . . .15.3 0.1 28.5 11.8
DuneImGroup . . . . . .468.0 3.0 550.0 371.1
HaIfords Group . . . . .361.4 1.7 518.5 348.2
Home RetaiI Group . .142.2 -9.5 244.5 141.6
Inchcape . . . . . . . . . .407.1 8.1 425.4 253.2
JD Sports Fashion . .984.5 0.0 1030.0 723.5
Kesa EIectricaIs . . . .138.5 -2.2 174.0 109.8
Kingfisher . . . . . . . . .257.3 -1.0 287.1 198.5
Marks & Spencer G . .357.0 2.0 427.5 329.3
Mothercare . . . . . . . .407.9 2.9 627.5 381.5
Next . . . . . . . . . . . . .2395.0 18.0 2415.0 1868.0
Sports Direct Int . . . .254.5 -2.0 265.8 101.1
WH Smith . . . . . . . . . .499.3 -3.7 523.0 398.2
Smith & Nephew . . . .665.5 4.0 742.0 537.5
Synergy HeaIth . . . . .937.0 5.0 948.0 640.0
Barratt DeveIopme . .104.4 -1.5 119.0 70.1
BeIIway . . . . . . . . . . . .680.5 7.5 753.5 511.0
YuIe Catto & Co . . . . .229.5 -3.5 253.0 122.2
BaIfour Beatty . . . . . .305.6 -2.0 357.3 234.6
KeIIer Group . . . . . . .458.4 2.3 698.5 432.0
Kier Group . . . . . . . .1345.0 -4.0 1418.0 970.0
Drax Group . . . . . . . .494.8 8.6 503.5 353.6
Scottish & Southe . .1414.0 15.0 1423.0 1108.0
Domino Printing S . .670.0 -4.5 705.0 440.0
HaIma . . . . . . . . . . . . .412.4 -2.8 429.6 270.0
Laird . . . . . . . . . . . . . .189.5 -2.4 207.0 101.0
Morgan CrucibIe C . .351.1 -6.0 357.1 189.1
Renishaw . . . . . . . . .1780.0 0.0 1854.0 772.5
Spectris . . . . . . . . . .1645.0 -34.0 1712.8 835.5
Aberforth SmaIIer . . .704.0 1.0 714.0 507.0
AIIiance Trust . . . . . .379.4 -1.1 392.7 307.6
Bankers Inv Trust . . .418.4 1.5 428.0 353.6
BH GIobaI Ltd. GB .1102.0 -11.0 1174.0 1058.0
BH GIobaI Ltd. US . . . .10.9 0.0 11.6 10.4
BH Macro Ltd. EUR . . .17.0 0.0 17.2 15.8
BH Macro Ltd. GBP 1749.0 -5.0 1775.0 1630.0
BH Macro Ltd. USD . . .16.9 -0.2 17.2 15.8
BIackRock WorId M .758.5 -4.0 815.5 533.0
BIueCrest AIIBIue . . .174.0 0.1 176.2 164.5
British Assets Tr . . . .134.2 -0.9 140.5 115.3
British Empire Se . . .517.0 1.5 533.0 422.0
CaIedonia Investm .1746.0 2.0 1928.0 1543.0
City of London In . . .297.6 0.7 306.9 249.3
Dexion AbsoIute L . .145.9 0.0 151.0 131.2
Edinburgh Dragon . .243.7 0.3 262.1 210.3
Edinburgh Inv Tru . . .466.0 -1.6 492.2 390.9
EIectra Private E . . .1727.0 12.0 1755.0 1275.0
F&C Inv Trust . . . . . .318.2 0.1 327.9 263.8
FideIity China Sp . . . . .99.4 -1.1 128.7 93.0
FideIity European . .1205.0 -9.0 1287.0 937.5
FideIity SpeciaI . . . . .552.5 0.5 595.0 523.0
HeraId Inv Trust . . . . .525.5 -1.5 545.5 369.0
HICL Infrastructu . . . .114.9 -0.5 121.3 112.0
Impax Environment .116.0 -2.0 130.5 106.5
JPMorgan American .883.0 -9.0 916.0 673.0
JPMorgan Asian In . .234.6 -1.6 250.8 190.5
JPMorgan Emerging .586.5 -4.5 639.0 494.0
JPMorgan European .930.0 2.5 983.5 641.0
JPMorgan Indian I . . .418.1 -1.4 502.0 394.1
JPMorgan Russian .672.0 0.0 755.0 533.0
Law Debenture Cor . .377.0 2.1 385.0 295.1
MercantiIe Inv Tr . . .1060.0 0.0 1137.0 904.5
Merchants Trust . . . .401.3 -3.6 431.8 342.0
Monks Inv Trust . . . .353.8 0.2 367.9 282.0
Murray Income Tru . .649.0 -3.0 673.0 553.5
Murray Internatio . . .952.0 4.0 991.5 823.5
PerpetuaI Income . . .267.4 0.6 276.0 217.8
PoIar Cap TechnoI . .359.2 -1.2 391.2 275.6
RIT CapitaI Partn . . .1328.0 6.0 1334.0 1107.0
Scottish Inv Trus . . . .510.0 5.0 524.0 409.0
Scottish Mortgage . .759.0 -1.0 781.0 566.0
SVG CapitaI . . . . . . . .264.0 -4.9 279.8 148.9
TempIe Bar Inv Tr . . .913.5 -1.5 952.0 754.0
TempIeton Emergin .656.5 -2.5 689.5 531.0
TR Property Inv T . . .191.7 0.4 206.1 138.2
TR Property Inv T . . . .89.4 0.7 94.0 62.1
Witan Inv Trust . . . . .517.5 -0.5 533.0 426.1
3i Group . . . . . . . . . . .279.3 -1.1 340.0 254.1
3i Infrastructure . . . .123.0 -0.1 125.2 108.9
Aberdeen Asset Ma .227.0 3.5 240.0 124.5
Ashmore Group . . . .408.5 0.5 414.5 265.4
Brewin DoIphin Ho . .160.0 1.8 185.4 114.0
CameIIia . . . . . . . . .10536.0 -67.010950.0 7863.0
CharIes TayIor Co . . .143.3 4.0 234.0 122.0
City of London Gr . . . .78.5 0.0 93.6 70.7
City of London In . . .426.0 -2.0 461.5 273.5
CIose Brothers Gr . . .761.5 -13.5 888.5 664.0
CoIIins Stewart H . . . .73.0 -0.8 90.8 69.0
EvoIution Group . . . . .66.3 0.1 92.0 62.3
F&C Asset Managem .76.4 0.4 92.9 47.5
Hargreaves Lansdo .600.5 -4.5 646.5 325.1
HeIphire Group . . . . . . .3.3 -0.1 43.0 3.0
Henderson Group . . .152.2 1.3 173.1 119.1
Highway CapitaI . . . . .18.5 0.0 21.0 6.0
ICAP . . . . . . . . . . . . . .480.6 -1.6 570.5 380.2
IG Group HoIdings . .435.0 -0.4 553.0 416.2
Intermediate Capi . . .289.2 -6.6 360.3 252.7
InternationaI Per . . . .372.0 -3.2 388.8 189.0
InternationaI Pub . . . .116.7 -0.4 118.3 108.6
Investec . . . . . . . . . . .499.1 0.2 538.0 444.4
IP Group . . . . . . . . . . . .48.5 -0.5 54.5 27.9
Jupiter Fund Mana . .252.8 2.0 337.3 181.0
Liontrust Asset M . . . .76.0 1.0 95.3 70.0
LMS CapitaI . . . . . . . . .61.8 0.9 64.8 40.0
London Finance & . . .21.8 0.0 23.5 16.5
London Stock Exch .988.0 -5.0 1076.0 617.0
Lonrho . . . . . . . . . . . . .17.5 0.5 19.8 10.5
Man Group . . . . . . . . .241.2 0.6 311.0 206.4
Paragon Group Of . .198.0 1.5 206.1 118.7
Provident Financi . .1018.0 28.5 1033.0 728.5
Rathbone Brothers .1157.0 8.0 1257.0 805.0
Record . . . . . . . . . . . . .30.9 -0.6 52.0 20.3
RSM Tenon Group . . .30.8 3.8 66.3 21.3
Schroders . . . . . . . .1605.0 3.0 1922.0 1193.0
Schroders (Non-Vo .1342.0 -6.0 1554.0 999.0
TuIIett Prebon . . . . . .364.0 -0.4 428.6 331.3
WaIker Crips Grou . . .51.0 0.0 51.0 46.5
BT Group . . . . . . . . . .193.0 -0.8 204.1 130.6
CabIe & WireIess . . . .40.6 -0.0 61.4 37.5
CabIe & WireIess . . . .45.2 -1.6 86.7 44.8
COLT Group SA . . . .138.7 3.2 156.2 109.0
TaIkTaIk TeIecom . . .139.2 -3.8 168.3 114.3
TeIecomPIus . . . . . . .678.0 7.0 700.0 340.0
Booker Group . . . . . . .75.0 -0.2 77.9 42.0
Greggs . . . . . . . . . . . .534.0 -1.0 550.5 418.7
Morrison (Wm) Sup .295.4 1.8 308.3 262.7
Ocado Group . . . . . . .190.0 0.0 285.0 123.5
Sainsbury (J) . . . . . . .320.9 3.9 395.0 316.4
Tesco . . . . . . . . . . . . .403.0 1.0 440.7 378.1
Associated Britis . .1087.0 6.0 1182.0 940.0
Cranswick . . . . . . . . .730.0 2.5 907.5 724.0
Dairy Crest Group . . .385.4 1.1 424.9 339.7
Devro . . . . . . . . . . . . .269.0 -2.4 296.9 205.5
Premier Foods . . . . . . .20.9 -0.8 35.1 16.0
Tate & LyIe . . . . . . . . .618.5 3.5 656.0 409.1
UniIever . . . . . . . . . .1974.0 -12.0 2065.0 1688.0
Mondi . . . . . . . . . . . . .623.5 -22.0 664.0 398.1
Centrica . . . . . . . . . . .317.4 -2.3 346.1 303.4
InternationaI Pow . . .302.0 0.1 448.6 300.5
NationaI Grid . . . . . . .603.5 -1.0 632.5 487.6
Northumbrian Wate .455.5 0.3 457.2 295.5
Pennon Group . . . . . .698.5 1.0 715.0 560.0
Severn Trent . . . . . .1428.0 -8.0 1517.0 1264.0
United UtiIities . . . . .584.5 0.0 632.0 543.5
Cookson Group . . . . .621.0 -9.0 724.5 411.1
DS Smith . . . . . . . . . .245.5 -0.7 266.2 125.8
Rexam . . . . . . . . . . . .379.4 0.5 400.0 293.0
GIencore Internat . . .496.9 4.9 531.1 466.7
BAE Systems . . . . . .300.4 -2.6 369.9 294.7
Chemring Group . . . .562.0 -24.5 736.5 519.6
Cobham . . . . . . . . . . .209.0 -1.7 247.6 192.3
Meggitt . . . . . . . . . . . .379.5 -1.4 389.1 261.7
QinetiQ Group . . . . . .122.4 -1.8 136.3 96.7
RoIIs-Royce Group . .642.5 -16.5 665.0 552.0
Senior . . . . . . . . . . . . .187.3 0.6 188.0 111.2
UItra EIectronics . . .1626.0 -56.0 1895.0 1544.0
GKN . . . . . . . . . . . . . .239.0 2.6 245.0 131.5
BarcIays . . . . . . . . . . .223.3 -2.6 344.0 221.9
HSBC HoIdings . . . . .599.9 -0.1 730.9 597.9
LIoyds Banking Gr . . .44.7 -1.1 77.6 43.4
RoyaI Bank of Sco . . .35.1 -0.3 52.1 34.8
Standard Chartere .1609.0 2.0 1950.0 1519.0
AG Barr . . . . . . . . . .1309.0 8.0 1395.0 1035.0
Britvic . . . . . . . . . . . . .371.1 -5.3 518.0 364.5
Diageo . . . . . . . . . . .1249.0 -7.0 1307.0 1050.0
SABMiIIer . . . . . . . . .2327.5 13.0 2337.5 1841.0
AZ EIectronic Mat . . .272.7 -9.5 338.1 248.5
Croda Internation . .2012.0 22.0 2081.0 1122.0
EIementis . . . . . . . . . .180.0 0.2 187.4 67.0
Johnson Matthey . .2004.0 -1.0 2119.0 1550.0
Victrex . . . . . . . . . . .1543.0 17.0 1590.0 1076.0
Price Chg High Low
BerkeIey Group Ho .1276.0 25.0 1299.0 789.5
Bovis Homes Group .424.6 -1.9 464.7 326.6
Persimmon . . . . . . . .479.8 5.2 502.5 336.5
Reckitt Benckiser . .3459.0 16.0 3648.0 3015.0
Redrow . . . . . . . . . . . .127.5 -0.5 139.0 97.5
TayIor Wimpey . . . . . . .36.7 0.6 43.3 22.3
Bodycote . . . . . . . . . .365.3 -0.7 397.7 214.5
Charter Internati . . . .819.0 -10.0 853.5 538.5
Fenner . . . . . . . . . . . .410.0 -1.0 419.1 198.0
IMI . . . . . . . . . . . . . . .1086.0 -6.0 1119.0 657.5
MeIrose . . . . . . . . . . .360.0 0.2 378.0 212.5
Northgate . . . . . . . . . .331.0 3.0 346.7 180.0
Rotork . . . . . . . . . . .1600.0 -36.0 1895.0 1390.0
Spirax-Sarco Engi . .1940.0 -15.0 2063.0 1499.0
Weir Group . . . . . . .2145.0 17.0 2196.0 1130.0
Ferrexpo . . . . . . . . . . .475.8 10.8 499.0 251.6
TaIvivaara Mining . . .402.5 -4.0 622.0 386.9
BBAAviation . . . . . . .217.9 0.0 240.8 175.0
Stobart Group Ltd . . .140.0 0.0 163.6 124.1
AdmiraI Group . . . . .1586.0 7.0 1754.0 1409.0
AmIin . . . . . . . . . . . . .395.0 -0.5 433.0 375.3
Huntsworth . . . . . . . . .71.9 -0.8 86.0 65.0
Informa . . . . . . . . . . . .421.8 -1.2 461.1 352.8
ITE Group . . . . . . . . . .235.5 6.9 258.2 139.6
ITV . . . . . . . . . . . . . . . . .66.7 -1.2 93.5 49.8
Johnston Press . . . . . . .5.3 0.0 20.0 4.4
MecomGroup . . . . . .238.3 -1.0 310.0 184.0
Moneysupermarket. .115.7 3.7 115.7 65.1
Pearson . . . . . . . . . .1155.0 -1.0 1207.0 920.0
PerformGroup . . . . .206.0 -4.0 234.5 202.8
Reed EIsevier . . . . . .545.0 -4.5 590.5 505.5
Rightmove . . . . . . . .1220.0 -8.0 1250.0 596.5
STV Group . . . . . . . . .127.0 0.0 168.0 79.8
Tarsus Group . . . . . .150.3 -1.8 165.0 112.5
Trinity Mirror . . . . . . . .40.0 -1.0 124.3 38.5
United Business M . .527.0 1.0 725.0 507.0
UTV Media . . . . . . . . .122.6 2.3 151.0 106.0
WiImington Group . . .115.5 1.0 183.0 114.0
WPP . . . . . . . . . . . . . .706.5 -11.0 846.5 633.0
YeII Group . . . . . . . . . . .7.0 -1.4 30.2 5.1
African Barrick G . . .455.4 3.6 638.0 393.5
AngIo American . . .2972.0 -34.0 3437.0 2254.0
AngIo Pacific Gro . . .308.1 -1.4 369.3 249.0
Antofagasta . . . . . . .1398.0 -18.0 1634.0 903.0
Aquarius PIatinum . .313.3 0.2 419.0 227.1
BHP BiIIiton . . . . . . .2340.0 -46.0 2631.5 1767.0
BeazIey . . . . . . . . . . . .126.5 0.4 139.2 110.4
CatIin Group Ltd. . . .388.6 -1.9 421.4 325.0
Hiscox Ltd. . . . . . . . . .406.7 3.0 424.7 341.5
Jardine LIoyd Tho . . .643.0 -3.0 709.0 561.0
Lancashire HoIdin . . .679.0 0.0 688.0 515.0
RSA Insurance Gro . .133.5 -0.5 143.5 120.1
Aviva . . . . . . . . . . . . . .407.9 -1.4 477.9 334.0
LegaI & GeneraI G . . .116.1 -1.2 123.8 84.1
OId MutuaI . . . . . . . . .131.2 1.4 145.2 111.4
Phoenix Group HoI . .561.0 2.0 758.0 554.5
PrudentiaI . . . . . . . . .683.0 -10.5 777.0 506.0
ResoIution Ltd. . . . . .277.3 -4.2 316.1 211.3
St James's PIace . . . .370.0 13.2 372.1 233.5
Standard Life . . . . . . .200.9 -0.4 244.7 190.7
4Imprint Group . . . . .275.0 4.5 295.0 195.0
Aegis Group . . . . . . .154.7 -0.8 162.3 107.0
BIoomsbury PubIis . .117.0 2.6 138.0 108.5
British Sky Broad . . .709.5 13.5 850.0 692.0
Centaur Media . . . . . . .52.5 1.5 73.0 44.8
Chime Communicati .253.5 0.5 298.5 165.8
Creston . . . . . . . . . . .109.0 2.9 121.0 78.5
DaiIy MaiI and Ge . . .419.0 -2.3 594.5 416.0
Euromoney Institu . .655.0 60.0 736.0 578.0
Future . . . . . . . . . . . . . .13.3 -4.3 30.0 13.3
Haynes PubIishing . .255.0 0.0 262.5 202.5
Centamin Egypt Lt . .135.8 3.7 197.1 114.5
Eurasian NaturaI . . .762.0 -6.5 1125.0 695.5
FresniIIo . . . . . . . . . .1625.0 30.0 1682.0 990.0
GemDiamonds Ltd. .241.1 -1.9 306.0 186.3
HochschiId Mining . .496.4 -4.1 680.0 289.4
Kazakhmys . . . . . . .1329.0 -21.0 1671.0 1017.0
Kenmare Resources . .56.5 -0.5 59.9 13.3
Lonmin . . . . . . . . . . .1345.0 -3.0 1983.0 1329.0
New WorId Resourc .861.0 -27.0 1060.0 850.0
PetropavIovsk . . . . . .812.5 -11.0 1252.0 678.0
RandgoId Resource 5465.0 0.0 6655.0 4425.0
Rio Tinto . . . . . . . . .4391.0 3.5 4712.0 3005.0
Vedanta Resources 1844.0 -37.0 2583.0 1832.0
Xstrata . . . . . . . . . . .1352.0 -6.5 1550.0 908.6
Inmarsat . . . . . . . . . . .535.0 -18.0 756.5 533.0
Vodafone Group . . . .159.0 -0.6 181.9 143.0
Genesis Emerging . .525.0 -0.5 568.0 458.0
Afren . . . . . . . . . . . . . .152.5 -2.7 171.2 82.8
BG Group . . . . . . . . .1399.0 -2.0 1564.5 1003.5
BP . . . . . . . . . . . . . . . .459.0 1.1 509.0 375.2
Cairn Energy . . . . . . .387.4 0.1 493.2 366.0
EnQuest . . . . . . . . . . .122.5 -1.0 158.5 103.0
Essar Energy . . . . . .376.7 1.7 589.5 371.2
ExiIIon Energy . . . . . .443.9 13.9 469.7 166.5
Heritage OiI . . . . . . . .240.6 4.0 486.0 210.0
JKX OiI & Gas . . . . . .258.2 -0.6 335.1 255.1
Premier OiI . . . . . . . . .408.3 -1.9 535.0 357.5
RoyaI Dutch SheII . .2232.0 19.5 2326.5 1703.0
RoyaI Dutch SheII . .2235.0 11.5 2336.0 1642.0
SaIamander Energy .278.0 -3.1 317.6 210.0
Soco Internationa . . .358.7 6.4 484.2 292.0
TuIIow OiI . . . . . . . . .1294.0 25.0 1493.0 1123.0
Amec . . . . . . . . . . . .1090.0 7.0 1251.0 848.5
Hunting . . . . . . . . . . .791.0 -6.0 817.0 483.3
John Wood Group . .683.5 9.5 715.8 339.5
LampreII . . . . . . . . . . .380.2 2.5 394.3 205.4
Petrofac Ltd. . . . . . .1473.0 28.0 1685.0 1250.0
Burberry Group . . . .1577.0 63.0 1581.0 790.5
PZ Cussons . . . . . . . .360.1 9.1 409.0 320.5
Supergroup . . . . . . .1075.0 -5.0 1820.0 818.5
AstraZeneca . . . . . .3078.5 5.5 3385.0 2801.5
BTG . . . . . . . . . . . . . .297.9 -2.0 309.7 196.2
Genus . . . . . . . . . . . .1019.0 2.0 1046.0 704.5
GIaxoSmithKIine . . .1342.0 12.0 1375.5 1111.0
Hikma Pharmaceuti .754.5 9.5 900.0 687.5
Shire PIc . . . . . . . . . .2064.0 -9.0 2074.0 1376.0
CapitaI & Countie . . .191.0 -3.0 203.7 110.0
Daejan HoIdings . . .2910.0 74.0 2989.0 2263.0
F&C CommerciaI Pr .102.4 -0.9 108.0 88.0
Grainger . . . . . . . . . . .124.0 1.0 133.2 86.3
London & Stamford .130.5 0.7 140.0 110.3
SaviIIs . . . . . . . . . . . . .377.0 3.2 427.1 291.0
St. Modwen Proper . .185.0 -0.1 196.2 135.4
UK CommerciaI Pro . .79.5 -1.0 85.5 74.3
Unite Group . . . . . . . .211.2 -1.8 229.8 175.0
Big YeIIow Group . . .306.2 -0.8 353.3 287.1
British Land Co . . . . .604.5 4.0 629.5 443.0
CapitaI Shopping . . .372.0 -0.4 424.8 320.9
Derwent London . . .1800.0 15.0 1880.0 1296.0
Great PortIand Es . . .444.8 2.8 449.5 295.9
Hammerson . . . . . . . .469.1 2.4 490.9 352.2
Hansteen HoIdings . . .87.1 -0.5 89.3 59.4
Land Securities G . . .878.0 8.0 885.0 573.0
SEGRO . . . . . . . . . . . .305.7 0.5 331.3 262.5
Shaftesbury . . . . . . . .524.0 3.0 539.0 384.4
Autonomy Corporat 1724.0 4.0 1902.0 1271.0
Aveva Group . . . . . .1744.0 -18.0 1799.0 1260.0
Computacenter . . . . .466.6 -10.3 489.7 265.0
Fidessa Group . . . . .2000.0 27.0 2109.0 1350.0
Invensys . . . . . . . . . . .307.7 -5.7 364.3 230.2
Kofax . . . . . . . . . . . . .490.0 1.0 535.0 231.0
Logica . . . . . . . . . . . . .117.0 -2.6 147.2 101.7
Micro Focus Inter . . .313.9 1.4 451.4 276.0
Misys . . . . . . . . . . . . .383.7 -3.7 420.2 254.1
Sage Group . . . . . . . .278.3 -1.2 302.0 235.3
SDL . . . . . . . . . . . . . . .692.0 11.0 711.5 510.0
TeIecity Group . . . . . .524.5 -1.5 557.0 403.3
Aggreko . . . . . . . . . .2022.0 -12.0 2044.0 1351.3
Ashtead Group . . . . .165.5 -5.1 207.9 77.0
Atkins (WS) . . . . . . . .730.0 0.0 820.0 650.0
Babcock Internati . . .699.0 -3.0 733.0 492.8
Berendsen . . . . . . . . .550.0 -1.0 568.0 361.8
BunzI . . . . . . . . . . . . .787.0 2.0 801.0 679.0
Capita Group . . . . . . .700.0 -2.0 794.5 635.5
CariIIion . . . . . . . . . . .373.8 -4.2 403.2 291.2
De La Rue . . . . . . . . .765.5 14.0 935.5 549.5
EIectrocomponents .238.7 -5.7 294.9 205.7
Experian . . . . . . . . . . .803.5 -7.5 833.5 606.0
FiItrona PLC . . . . . . . .367.1 3.4 385.5 227.5
G4S . . . . . . . . . . . . . . .274.4 0.1 291.0 237.7
Hays . . . . . . . . . . . . . . .93.1 -0.8 133.6 89.0
Homeserve . . . . . . . .495.0 -3.5 532.0 408.0
Howden Joinery Gr . .109.9 0.6 127.5 63.0
Intertek Group . . . . .1920.0 8.0 2148.0 1577.0
MichaeI Page Inte . . .523.5 -5.5 567.0 368.0
Mitie Group . . . . . . . .237.3 0.3 242.5 188.7
Premier FarneII . . . . .189.3 -0.4 308.8 183.5
Regus . . . . . . . . . . . . .103.3 -0.2 119.0 66.1
RentokiI InitiaI . . . . . . .91.8 -0.4 111.1 84.3
RPS Group . . . . . . . . .233.4 0.0 253.0 169.8
Serco Group . . . . . . .550.5 -3.5 633.0 529.5
Shanks Group . . . . . .126.6 0.1 130.9 96.5
SIG . . . . . . . . . . . . . . .136.5 1.1 153.5 90.7
SThree . . . . . . . . . . . .407.7 3.0 447.6 231.1
Travis Perkins . . . . . .944.5 0.5 1127.0 747.0
WoIseIey . . . . . . . . .1886.0 -11.0 2261.0 1223.0
ARM HoIdings . . . . . .564.0 -10.5 651.0 300.5
CSR . . . . . . . . . . . . . .294.4 -4.6 447.0 280.9
Imagination Techn . .392.5 5.5 502.0 303.5
Pace . . . . . . . . . . . . . .114.1 0.8 231.8 93.0
Spirent Communica .134.9 -0.7 160.3 117.3
British American . .2800.0 22.5 2847.0 2166.0
ImperiaI Tobacco . .2150.0 9.0 2231.0 1784.0
Avis Europe . . . . . . . .311.0 0.1 312.0 184.0
Betfair Group . . . . . . .646.0 -36.0 1550.0 635.0
Bwin.party Digita . . .139.0 -1.4 309.5 127.0
CarnivaI . . . . . . . . . .2206.0 -26.0 3153.0 2037.0
Compass Group . . . .588.5 1.0 612.0 501.0
Domino's Pizza UK . .436.5 3.3 586.0 377.0
easyJet . . . . . . . . . . . .316.3 1.9 479.0 311.3
Enterprise Inns . . . . . .60.1 1.9 122.7 57.8
FirstGroup . . . . . . . . .350.6 20.8 412.6 311.3
Go-Ahead Group . . .1548.0 2.0 1598.0 1073.0
Greene King . . . . . . .492.9 3.0 518.0 398.0
InterContinentaI . . .1240.0 -1.0 1435.0 982.0
InternationaI Con . . .227.0 -3.5 305.0 199.4
JD Wetherspoon . . . .428.9 -4.2 468.3 389.9
Ladbrokes . . . . . . . . .143.2 -0.9 155.3 122.7
Marston's . . . . . . . . . .103.2 0.2 117.1 92.0
MiIIennium& Copt . .508.0 0.5 600.5 431.5
MitcheIIs & ButIe . . . .296.0 1.0 361.0 284.4
NationaI Express . . .248.3 6.3 270.2 220.1
Punch Taverns . . . . . .71.1 -0.5 90.4 58.1
Rank Group . . . . . . . .151.0 1.0 153.8 102.6
Restaurant Group . . .302.0 3.1 335.0 214.2
Stagecoach Group . .257.3 4.9 268.5 160.7
Thomas Cook Group .70.5 -0.9 204.8 69.8
TUI TraveI . . . . . . . . . .189.3 -3.2 271.9 189.3
Whitbread . . . . . . . .1547.0 4.0 1887.0 1368.0
WiIIiamHiII . . . . . . . . .219.8 3.9 237.3 155.5
Abcam . . . . . . . . . . . .407.0 -13.0 460.0 277.0
AIbemarIe & Bond . .385.0 5.0 397.5 218.0
Amerisur Resource . .22.3 0.3 29.0 11.5
Andor TechnoIogy . .619.0 -20.0 659.0 282.5
ArchipeIago Resou . . .56.5 0.0 66.8 32.3
ASOS . . . . . . . . . . . .2385.0 -1.0 2468.0 840.0
AureIian OiI & Ga . . . .61.0 1.0 92.0 36.3
Avanti Communicat .395.5 -9.3 735.0 339.0
Avocet Mining . . . . . .221.8 2.8 253.5 112.0
BIinkx . . . . . . . . . . . . .124.8 0.0 148.8 53.8
Borders & Souther . . .52.8 0.3 93.0 49.5
BowLeven . . . . . . . . .301.0 -2.5 398.0 147.8
Brooks MacdonaId 1249.0 19.0 1372.5 817.5
CaIedon Resources .111.0 -0.3 111.5 36.5
Conygar Investmen .107.4 0.9 120.0 101.3
Cove Energy . . . . . . . .96.0 -1.8 112.8 49.5
Daisy Group . . . . . . .122.5 0.1 127.0 86.0
EMIS Group . . . . . . . .557.0 7.0 577.0 303.5
Encore OiI . . . . . . . . . .61.3 -0.8 151.5 49.5
Faroe PetroIeum . . . .176.0 1.0 218.3 119.3
GuIfsands PetroIe . . .211.8 0.0 401.5 207.3
GWPharmaceuticaI .121.3 -1.8 130.0 83.0
Hamworthy . . . . . . . .671.0 -8.5 705.0 322.0
Hargreaves Servic .1040.0 8.0 1076.0 602.0
HeaIthcare Locums . .112.5 0.0 112.5 112.5
Immunodiagnostic .1072.0 -13.0 1129.0 710.0
ImpeIIamGroup . . . .362.1 7.8 387.5 84.0
James HaIstead . . . . .482.4 3.0 494.8 306.0
KaIahari MineraIs . . .230.0 -0.3 301.0 142.0
London Mining . . . . .394.5 -5.5 436.5 240.3
Lupus CapitaI . . . . . .117.0 0.5 150.0 78.0
M. P. Evans Group . .449.9 -4.3 500.5 342.5
Majestic Wine . . . . . .494.0 0.8 510.0 301.0
May Gurney Integr . .280.0 6.5 289.3 177.0
Monitise . . . . . . . . . . . .38.0 -1.0 39.2 18.5
MuIberry Group . . . .1720.0 20.0 1750.0 282.5
Nanoco Group . . . . . . .82.0 1.5 115.8 68.0
NauticaI PetroIeu . . .337.5 2.5 547.0 128.0
NichoIs . . . . . . . . . . . .573.8 1.3 578.0 401.0
Numis Corporation . .116.6 -0.3 146.5 94.0
Pan African Resou . . .13.8 0.5 13.8 5.9
Patagonia GoId . . . . . .55.5 2.3 59.3 12.8
Prezzo . . . . . . . . . . . . .69.0 0.6 71.5 38.3
Pursuit Dynamics . . .332.3 4.8 700.0 218.5
Rockhopper ExpIor .227.8 -4.5 510.0 202.5
RWS HoIdings . . . . . .462.6 12.6 472.0 239.0
Songbird Estates . . .149.3 1.8 160.3 135.0
VaIiant PetroIeum . . .584.0 4.0 761.5 504.0
Young & Co's Brew . .697.3 -14.8 712.0 513.0
Euromoney Institut . .655.0 10.1
FirstGroup . . . . . . . . .350.6 6.3
Burberry Group . . . .1577.0 4.2
St James's PIace . . . .370.0 3.7
Moneysupermarket.c 115.7 3.3
ExiIIon Energy . . . . . .443.9 3.2
Enterprise Inns . . . . . .60.1 3.2
ITE Group . . . . . . . . .235.5 3.0
Provident Financia .1018.0 2.9
Centamin Egypt Ltd .135.8 2.8
Home RetaiI Group . .142.2 -6.3
Betfair Group . . . . . . .646.0 -5.3
Chemring Group . . . .562.0 -4.2
Premier Foods . . . . . . .20.9 -3.5
CabIe & WireIess W . .45.2 -3.4
Mondi . . . . . . . . . . . . .623.5 -3.4
AZ EIectronic Mate . .272.7 -3.4
UItra EIectronics . .1626.0 -3.3
Inmarsat . . . . . . . . . . .535.0 -3.3
New WorId Resource 861.0 -3.0
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
FINANCIAL SERVICES
FIXED LINE TELECOMS
FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. & EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM 50
NON LIFE INSURANCE
REAL ESTATE INVEST. TRUSTS
http://corporate.webfg.com
mailto:
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 . . . . .101.09 -0.03 103.6 101.1
Tsy 9.000 11 . . . . . .99.99 0.00 108.2 100.0
Tsy 2.500 11 . . . . .306.99 -0.02 310.0 307.0
Tsy 5.000 12 . . . .102.86 -0.07 106.9 102.7
Tsy 5.250 12 . . . .104.13 -0.04 108.2 104.1
Tsy 9.000 12 . . . .108.69 -0.91 116.2 107.8
Tsy 4.500 13 . . . .106.20 -0.02 109.2 105.8
Tsy 2.500 13 . . . .287.29 -0.05 287.7 274.9
Tsy 8.000 13 . . . . .115.66 -0.03 121.3 115.5
Tsy 5.000 14 . . . . .111.62 0.02 114.1 109.2
Tsy 7.750 15 . . . .103.70 229.65 342.1 103.0
Tsy 8.000 15 . . . .126.96 0.02 131.6 123.7
Tsy 4.750 15 . . . . .112.62 0.04 114.7 108.6
Tsy 2.500 16 . . . .333.71 0.11 334.1 304.4
Tsy 4.000 16 . . . . .110.11 0.07 111.4 104.9
Tsy 12.000 17 . . .126.25 0.00 185.9 125.2
Tsy 1.250 17 . . . . .112.11 0.06 112.2 104.9
Tsy 8.750 17 . . . .137.52 -0.21 142.2 132.9
Tsy 5.000 18 . . . . .116.12 0.10 117.6 109.7
Tsy 4.500 19 . . . . .112.50 0.14 113.8 105.4
Tsy 3.750 19 . . . .106.65 0.16 107.7 99.4
Tsy 4.750 20 . . . . .113.78 0.19 115.9 106.6
Tsy 2.500 20 . . . .341.52 0.19 342.0 303.8
Tsy 8.000 21 . . . .142.60 0.16 147.1 133.8
Tsy 4.000 22 . . . .105.84 0.18 108.4 99.0
Tsy 1.875 22 . . . . .117.85 0.24 118.1 108.5
Tsy 2.500 24 . . . .300.23 0.30 300.9 262.1
Tsy 5.000 25 . . . . .114.27 0.22 118.5 107.4
Tsy 1.250 27 . . . . .111.84 0.47 112.1 100.5
Tsy 4.250 27 . . . .104.33 0.26 108.8 97.9
Tsy 6.000 28 . . . .126.73 0.26 132.7 119.5
Tsy 4.750 30 . . . .109.77 0.31 115.0 103.0
Tsy 4.125 30 . . . .286.31 0.46 287.0 248.7
Tsy 4.250 32 . . . .102.73 0.33 107.8 96.0
Tsy 4.250 36 . . . .102.03 0.34 107.4 95.0
Tsy 4.750 38 . . . . .110.59 0.34 116.5 102.8
Tsy 4.500 42 . . . .106.68 0.00 112.8 98.9
% %
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1.4158
Donata Huggins asks
the founder of mini-cab
firm Addison Lee how
he grew his business
from a single car
to a 200m company
Business Features| Entrepreneurs
17
T
HE creation of new firms is the single
most important part of the economic
drama, says Carl Schramm, the chief
executive of the Kauffman Foundation,
the worlds largest private foundation devoted to
encouraging entrepreneurship. He was speaking
about the challenges facing the worlds entrepre-
neurs. While the whole speech was fascinating,
that statement really stood out.
It struck me because the start-up moment is
often the defining part of an entrepreneurs own
personal drama. Not the IPO or the sale, but the
moment of inspiration, and the initial phase of
getting started.
And for many successful entrepreneurs, it is
that period that becomes a key part of their nar-
rative the tales of hurdles overcome, inspired
decisions and brave risk taking that follow them
through the years.
TECH LEGENDS
Take Google. Everyone has heard the story of
Larry Page and Sergey Brin studying at
Stanford, working on a project to organise the
worlds information and make it universally
accessible and useful, and misspelling the word
Googol to come up with the defining start-up of
the past 20 years.
Facebooks origins were so full of drama that
The Social Network a movie loosely based on
its early years scooped dozens of awards and
ended the year at the top of many movie-of-the-
year charts.
Closer to home, Innocents brand image
wouldnt have quite the same quirky appeal
without the story of the founding group of three
working a fresh-fruit stall at a festival and asking
the customers whether they should quit their
jobs to sell smoothies full-time.
And Will King, the maverick boss of King of
Shaves, a smart storyteller and avid user of
social media, always goes back to the moment
he decided to take on Gillette and Wilkinson
Sword by creating a product that would tackle
his razor burn.
The common theme is that a strong launch
story, well-told, can become part of the start-up
narrative, and a key weapon in the entrepre-
neurs armoury.
SELLING YOUR STORY
When my business partner and I started our
firm, Seven Hills, in January last year, the market
was still in the doldrums and many people
thought we were mad for quitting jobs when the
going appeared so tough. But just like many oth-
ers before us, we believed that the downturn
provided a great opportunity to do something
different in our sector, so we set about creating
a campaigning PR business that would champi-
on entrepreneurship and become part of the
economic recovery story.
The point is that branding, marketing and
communications are essential aspects of building
a successful business, as is a narrative that
engages and delivers a compelling point of dif-
ference. From customers to investors, journalists
to employees, you need a message and it needs
to be one that gets people to sit up and take
notice.
The creator of a business is a walking advert.
Entrepreneurs need to learn about how to make
that work to their advantage. Smart entrepre-
neurs recognise this and make much of their
founding story. They willingly accept the role of
communicator-in-chief, craft their narrative and
grasp opportunities to tell their story. The start-
up story is an asset that entrepreneurs need to
understand more, harness ruthlessly and use to
create advantage.
Entrepreneurs who don't have a story, dont real-
ly stand a chance.
Nick Giles is co-founder of the public relations
consultancy Seven Hills.
www.wearesevenhills.com
ENTREPRENEURS
NEED A GOOD
START-UP STORY
NICK GILES
ENTREPRENEUR
R
ECESSIONS are colonic irrigation
for the economy, John Griffin tells
me, all the crap gets washed out.
He smirks at me. When things
started going down the pan, I employed
more staff. 150 drivers, 35 in the central
office. I put my foot to the floor because
everyone else started scaling back.
Griffin is a man you can easily imagine
behind the wheel of a cab, putting the
world to rights. Indeed, he once was. He
only hung up his keys and bought a mini-
cab business when his first son was born
in 1979: I fell in love with my son. I want-
ed to do something with my life to make
him proud.
He left school without any qualifica-
tions, before bluffing his way into an
accountancy job. I wasnt particularly
good at it. It was murder, but a good disci-
pline. He was forced to part ways with the
job because he assaulted his manager. He
was a bully. One day he called me a rat. As
a result, he ended up in hospital, and I
ended up without a job.
After that, Griffin says he was a mover
and shaker, doing odd jobs before joining
a mini-cab firm. They thought I was bril-
liant. I wasnt: I was okay. They were just
dreadful. He quickly rose up the ranks to
director before deciding to go it alone.
He came across a mini-cab business that
was running into trouble and decided to
buy it out: It was the most bizarre thing
Id ever seen. He was answering the
phones, jumping in the car, going out,
doing the job, coming back and manning
the phones again.
Griffin took over, renamed it and
expanded. I wanted a name that sounded
upmarket, preferably beginning with A. A
chap in the office overheard me talking
about this and said he lived in a squat in
Addison Gardens and that whenever he
told people, they would say oooo, Addison
Gardens, lah-di-dah. Apparently, this
wasnt posh enough, though: It needed a
short word to follow Lee. It gives it a cer-
tain twoo-twoo-twoo rhythm.
Griffin says his niche was simply to
offer great service. It doesnt matter
about price. Price is forgotten, service is
remembered. He is critical of the black
cabs, suggesting they are scruffy, rude and
overpriced. Griffin is very proud of his
business. They drive 10m people a year. In
total, they have driven over 100m, and no
driver of theirs has ever been found guilty
of any offence. He claims his firm is 30 per
cent cheaper than a black cab.
The man has a fighting spirit: I just
want to say to my competitors: we can live
together, but youve got to up your game.
Its getting too easy.
Turnover: 200m
No. of staff: 1,250
Job title: Founder and chairman
Age: 68
Born: London
Lives: London
Studied: Left school at 16 without any qualifi-
cations
Drinking: Lots.
Reading: Love it.
Idol: No worker.
Talents: A few.
Favourite business book: Havent written it
yet.
Motto: Who cares, wins.
First ambition: There are three things a man
must do before he passes on: find a wife, plant
a tree and give the world a son.
Awards: Ernst & Young Entrepreneur of the
Year 2009-10
CV | JOHN GRIFFIN
Meet the man behind
the wheel at Addison Lee
John Griffin, a man with the new knowledge Picture: Micha Theiner/City A.M.
ENTREPRENEURS NEWS | IN BRIEF
SMES ARE NOT TAKING DATA LAWS SERIOUSLY
Half of small firms in the UK still believe that
the loss or theft of data from their organisa-
tion would have no impact on their business,
according to new research commissioned by
Shred-it, a document destruction company.
The survey among 1,000 UK businesses,
undertaken by Ipsos, found that more than
two thirds of UK SMEs (68 per cent) either
never train their employees on company
information security procedures and proto-
cols (30 per cent), or do so only on an ad hoc
basis (38 per cent). This news comes despite
last years new legislation, threatening a
500,000 fine for serious breaches of the
Data Protection Act.
NEW MENTORING SCHEME LAUNCHED
A new business mentoring scheme has been
set up by the UKs five largest high street
banks. Start ups, established companies or
those looking for a sounding board will
receive support from networks of mentors,
including current and retired bank staff that
have volunteered and been trained as men-
tors. Business and enterprise minister Mark
Prisk says: Small business owners have
repeatedly told us that the support they value
most comes from other experienced business
people. For the first time in the UK, there will
be a single, cohesive network of mentoring
provision. For more information visit
www.mentorsme.co.uk
ENTREPRENEURS ARE MADE NOT BORN
Almost 60 per cent of entrepreneurs worked in
a corporate environment before they started
their venture, according to Ernst & Young. The
research challenges the stereotype that all
entrepreneurs start their companies without
completing any formal education and without
any experience of corporate life. Although many
of the entrepreneurs that were surveyed started
at a young age, 45 per cent of the respondents
said they did not start their business until they
were 30 or more. And nearly 60 per cent
described themselves as transitioned entrepre-
neurs, who have previously worked in a corpo-
rate environment before setting out on their
own.
I
T is a bright spring day in the gentri-
fied area of Christiana in
Copenhagen, and the houseboat that
is the Nordic Food Lab or the min-
istry of bonkers food as it should be
known, is a hive of activity. Birch
twigs are being slowly cooked sous-
vide, to be turned into tea.
Buttermilk is being infused with sugar
kelp and rennet to become a soft
cheese, and bacon is being boiled down
to produce an alternative to ones morn-
ing cup of earl grey. Leathery bundles of
seaweed sit there pickled, dried, and give
off a faint whiff of wet dog. Yet this unlike-
ly setting is also the slightly mad epicentre
of the Nordic food revolution: one of the
biggest gastronomic events since Heston
Blumenthal decided to turn his breakfast
into a rather delicious ice-cream.
Set up by chef Rene Redzepi whose
Noma restaurant, which stands just oppo-
site the boat won the San Pellegrino
Worlds 50 Best Restaurants in the World
award for the second time this year, its
purpose is to explore and promote nordic
cuisine through research and develop
recipes.
Some of these recipes find their way
onto the legendary Noma menu, such as
seaweed crisps, or the bacon broth over
fresh cheese; others they are hoping to
make commercial, such as a feta cheese
with seaweed.
This is all good and well but does sea-
weed alone maketh this cuisine the best in
the world?
This is put to a test later in the day,
when NFLs head chef Lars Williams pre-
pares a four-course meal for us at
Copenhagen's catering school, using a
variety of different, yes, seaweeds, with
surprisingly tasty results. Salmon with
beach herbs and red seaweed dust goes
down a treat, as does chicken with white
asparagus and spruce oil.
It is when dessert comes that I wonder
whether we are really at the Mad Hatters
Tea Party ice-cream made from red
dulse seaweed is served with a beetroot
reduction, and finished off with a fine
sprinkling of fish scales. Nil points for
taste, ten out of ten for creativity.
Yet pretty soon it becomes apparent
that there really is more to Nordic food
than seaweed. Passionate about promot-
ing the flora and fauna of their land
including romantic-sounding delights
such as bog myrtle, beach coriander, elm
seeds and wood sorrel a group of chefs
is creating some of the most original and
sumptuous food in the world.
One such chef is Klaus Henrikson, ex-
sous-chef at Noma and now at the ethere-
al and insanely beautiful Dragsholm
Castle, an hours retreat from the city
(and, I am told, where all the great and
good of Copenhagen come to conduct
their affairs).
The dishes sound and taste like some-
thing from a fairy tale. Poached lammer-
fjord oysters are served with perfect little
pearls of potatoes, dill oil and pickled sea-
weed. Asparagus appears to be buried in a
little pot of earth, which turns out to be
malted earth with a sorrel emulsion
underneath.
One of the tastiest cocktails I have had
in years is a hackberry sour branches
from the marzipan-scented hackberry
tree are minced and added to sugar and
water and left for a few days, then
drained and added with lemon and rum.
It tastes of sweet almonds and slips down
a treat.
We also get the chance to sample
some of the more delicious cheese
Denmark has to offer. Dairy Arla is pro-
ducing small lines of artisan cheeses,
again with nordic terroir in mind. One
made with elm and another with beer is
particularly tasty.
It is laudable what they are doing as
Soren Wiuff, who forages and supplies
much of the produce to Noma and
Dragsholm explains, many of these
plants were native but unused and they
have been brought back into produc-
tion.
Mr. Wiuff brings his own bottle
to the lunch, in the form of
asparagus beer not bad
and designed to be eaten
with the green spears them-
selves.
It becomes apparent that a
few things stick out in end-
lessly mouthwatering dishes
that come our way over
the next few days. The
ingredients on the
menu are almost all
gobbeldygook to me
but are combined to
create some of the best
food I have had in my life.
And where they save their
most esoteric moments are
for their desserts, which
more often than not sound
like starters.
At celebrity chef Bo Bechs new place,
Geist, opposite the opera house, guests
are seated around a bar facing the
frenetic kitchen. Hair-dos and minuscule
frocks suggest it is not just a foodie desti-
nation but the hot seat du jour. Or per-
haps its the blonde Maitre D, with killer
cheek bones, who turns out to be
Denmarks most famous ex-porn star,
Katja Kean. And the food, such as fjord
shrimps with elderberry and smoked
milk, and turbot with fennel ravioli of
cheese is excellent. Then theres those
savoury food desserts: theres vanilla ice-
cream with black olives; a soup with beer
and bread; and a beetroot creme brulee.
Although the nordic food revolution
began ten years ago or
so, it is Noma that has
really put it on the map.
Opened seven years ago
by Rene Redzepi, it is
passionate
about pro-
moting the
l a n d s
food,
unearthing
treats from the earth
that have lain
forgotten and making
sure everything is local
(local can mean Norway,
Iceland and the Faroe Islands). In
the private dining room his culinary
quirkiness and capability is revealed.
The display of flowers on the table
turns out to be made up of edible crisp-
breads, that are dipped in juniper cream.
A kilner jar is brought to the table with
a live shrimp a feat of derring-do as we
struggle to capture the poor beast as it
flies onto the table in a bid for freedom.
No crueller than an oyster I tell myself.
Next up, a giant box in the shape of an
egg is opened: a haze of smoke curls up
from a bed of hay, on which sits a deli-
cately smoked quails egg. Some things
Above: Noma chef
Rene Redzepi. Above
right: Copenhagens
beautiful waterfront.
Below and right: lan-
goustine and sea-
weed, which the
Nordic Food Lab
is refining into
a commerical
success.
Copenhagen is the setting for
some astounding innovation in
cuisine, says Jemima Sissons
Seaweed and bog
myrtle? Yes please
Lifestyle| Travel
18 CITYA.M. 18 JULY 2011
W
hy is there a picture of
Nelsons Column on Geek
Speak? This is supposed to
be about technology, and
Nelsons column hasnt been considered
high-tech since 1840, when it was
erected by a new type of winch.
Probably. I dont know anything about
Nelsons Column.
What I do know is that you would be
wrong to doubt the technological cre-
dentials of this column. I have been
assured that this picture is the most
high-tech thing that has ever been
printed in a piece of newspaper editori-
al. It might be the most high tech thing
ever. I will let you be the judge of that.
But if you want to enjoy it, you will have to work for it. Get your smartphone out and down-
load an app called Aurasma from the App Store or the Android Marketplace. (If you dont
have a smartphone, stop reading now. This column isnt for you. Go back to your hut and stare
into the fire, or whatever it is you do for entertainment.) Now, open Aurasma and point it at
Nelsons Column. Not the real thing, the picture below. What will it do? Im not telling you. Like
I said, you have to do a bit of work to enjoy this column its a two way street. Download the
app and find out.
You see that? That is called augmented reality (assuming, of course that it works. The test-
run was OK but Im at the mercy of the technology. If it doesnt work, dont blame me. Im
sorry for wasting your time. Get over it.) So now you might be thinking: Great. City A.M. has a
picture of a monster flying around Nelsons Column. Thats very clever. Buy yourself a biscuit.
But pretty soon, this technology will be everywhere. It will make the adverts in Minority
Report seem tame (you dont know what Minority Report is? Again, stop reading. You proba-
bly arent enjoying this column anyway. Go and do some gardening instead). While augmented
reality has been around for years., it usually involves pointing your phone at a barcode. What
Aurasma does differently is allow almost any static image to be overlaid with augmented reality.
The technology, designed by Cambridge-based software giant Autonomy, is already being integrat-
ed into adverts for movies point your phone at certain posters on the tube and it will show the
trailer (I believe it works for Bridesmaids but dont let that put you off). Soon car adverts will show
a Ferrari driving at full speed driving towards your face. It will be both terrifying and brilliant. One
day you will be able to point your phone at ugly people and it will make them attractive. Eventually
you wont need a phone at all, augmented reality will be automatically added to everything you see.
The world will be like it already is, but better. Just remember where you saw it first.
Of course, if you are reading this online, you wont know what Ive been talking about. There
will be no picture of Nelsons column. There will probably be no evidence this flying monster
ever existed in the first place. Maybe Ive been making it up. Youll never know. You should
have picked up a copy of City A.M.
Behold: the most high
tech column ever
WOODRUFF EXTRACT, FERMENTED SPELT... INSIDE THE THE NORDIC FOOD LAB
T
HE Nordic Food Lab is a hive of
intense creativity and pioneer-
ing. The group involved is hell-
bent on innovating with taste
and ingredients, with an emphasis on
those straight under their noses.
Which is why some of them certain
types of seaweed, plants and grains
are not familiar to most Europeans.
The NFLs activity is divided into
several research areas. One is
Forest Under the Sea an explo-
ration of five different types of sea-
weeds (the best results have been
with the red, Icelandic seaweed
sl). NFL is currently one year into
an ageing programme for harvested
seaweed.
Another research area is New
Fermentation: Chasing Umami, an
attempt to pin down that hard-to-
define sixth taste that is syn-
onemous with yum and most pres-
ent in Asian food. NFL is looking at
how microbiological manipulation
techniques like ageing, fermentation
[and] the use of bacteria cultures
could further the possibilities in a
range of products and is currently
fermenting indigenous cereal types
such as spelt, emmer, einkorn, yel-
low peas and barley.
More audaciously, NFL is also try-
ing to make the best chicken in the
world. The project is based on a
wholesome approach to the chicken
as a food product, focusing the qual-
ity of life, space and living condi-
tions, species, age of slaughter, feed
and everything that contributes to
flavour and texture of a chicken.
Then theres the work with the
Nordic Gene Bank: mapping the
flavours of several original Nordic
species in order to resurrect forgot-
ten indigenous foods and to pre-
serve biodiversity. So far, the NFL
has mapped the flavour and applica-
tion value of several types of species
like potatoes, turnips, rhubarbs, and
peas.
This is the real deal: taste-lovers
stirring the pot of creativity, science
and sustainability.
GEEK SPEAK
@steve_dinneen
VIP SKI LAUNCHES IN
VERBIER
The luxury ski holiday oper-
ators have added two
chalets in Verbier for the
2011/12 season. Up for
grabs are the super-stylish
Chalet Tortin and Chalet
Mont Fort, both of which
sleep six and are situated in
a prime position at the
heart of the village, three
minutes walk from the
main Medran lift, close
enough to the buzz of vil-
lage life but perfectly
secluded from the action.
Expect breath-taking views
or cosy up beside an open
fire in the stylish yet cosy
open-plan living areas. VIP
SKI (0844 557 3119;
www.vip-chalets.com)
offers 7 nights at Chalet
Tortin and Chalet Mont Fort
from 989 per person
based on 6 sharing, includ-
ing return flights from
Gatwick, transfers and
catered chalets.
ULTIMATE MALAY
RETREAT
The Estates on Pangkor
Laut, Malaysia, get you as
close to (temporary) para-
dise as money can
arrange. The new seven-
night Estate Experience
includes transfers on the
newly acquired
AgustaWestland 139
twin-engine helicopter to
take guests directly to the
island (and their resi-
dence), where they will
be pampered with a host
of activities and treats
throughout the week. Its
really a slice of heaven, as
the price implies. Seven-
night luxury package for
up to six guests is offered
at the special inclusive
price of 21,377 per
Estate, which covers all
food and beverage, private
bar, and use of all the
facilities at Pangkor Laut
Resort, including the heli-
copter transfers.
TRAVEL NOTES | by Zoe Strimpel
such as dried scallop chips on grass barley risotto
are a food revolution too far for me, although every-
one else is wolfing it down. However, his giant lan-
goustine, which has been cooked sous-vide and
served with seaweed emulsion, is the sweetest I
have ever tasted.
When I meet Redzepi backstage after the meal
he is holding one of the most revolting creatures I
have ever seen: a geoduck (Google for some truly
disturbing images), which his sea forager, Roderick
from Scotland, found in the icy depths of Faroe and
is now deciding how to turn into a gastronomic
masterpiece. If anyone can do it, hes the man.
Rene has been busy picking and preserving roses,
ramson fruits (like garlic) and the like, for the lean
months next year heaven forbid the sugar snap
peas are flown over from Kenya when the Nordic
ground is frozen.
So heres the thing: you eat like a king no
guilt about food miles, and taste things that
you will never eat anywhere else in the world.
One thing is for sure though, the only way to
be part of this Nordic food revolution is to get
on a plane and go there yourself, and there
are worse places to be a greedy revolutionary
than Copenhagen. www.nordicfoodlab.org
19 CITYA.M. 18 JULY 2011
Dragsholme Castle: foodie paradise
T
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JULIA BRADBURYS CANAL
WALKS BBC2, 7.30PM
In the last programme of the series,
the presenter travels to Llangollen in
North Wales, where she examines the
126ft-high aqueduct in Llangollen.
SHOWME THE FUNNY
ITV1, 9PM
Jason Manford hosts this new series,
which sees 10 comedians with varying
levels of experience compete in a
contest for a 100,000 prize.
EMBARRASSING BODIES: TEEN
SPECIAL CHANNEL4, 9PM
Doctors Christian Jessen, Dawn Harper
and Pixie McKenna visit the Wakestock
music and wakeboarding festival in
North Wales to talk to more teens.
BBC1
SKY SPORTS 1
7pmLive Darts 11pmTime of
Our Lives 12amSoccer AM: The
Best Bits 1amNASCAR 2am
FIFA 2.30amSports Unlimited
3.30amWatersports World
4.30amMax Power
5.30am-6amFIFA
SKY SPORTS 2
4.30pmLive ECB 40 League
Cricket 10pmAshes Memories
10.30pmBoots n All 11.30pm
Elite League Speedway
1.30am-5.30amDarts
SKY SPORTS 3
6.30pmNASCAR 7.30pmLive
Elite League Speedway 9.30pm
PGA Tour Golf 10.30pmGolfing
World 11.30pmWonderful
World of Golf 1amPGA Tour
Classic 2amLive WWE: Late
Night Raw4.15am-4.45am
Absolute Match Fishing
BRITISH EUROSPORT
7pmRugby Sevens 8pm
Cycling: Tour de France 9pm
MotoGP 11pmBritish
Superbikes 12am-12.30amGP
Racing Dream
ESPN
6.15pmCopa America Football
8pmNFL 11pmFIA GT1 World
Championship 12amLive Major
League Baseball 3amLive Pre-
Season Football 5am-6am
Superleague Formula
SKY LIVING
7pmCSI 8pmChick Fix 9pm
Britain & Irelands Next Top
Model 10pmHalf Ton Teen
11pmCriminal Minds 12am
CSI: Crime Scene Investigation
1.50amGhost Whisperer
2.40amCharmed 4.20am
Nothing to Declare
5.10am-6amMaury
BBC THREE
7pmThe Apprentice: The Final
8pmSnog, Marry, Avoid?
8.30pmUnderage and
Pregnant 9pmSmall Teen,
Bigger World 10pmEastEnders
10.30pmWorlds Craziest Fools
11pmFamily Guy 11.45pm
Small Teen, Bigger World
12.45amUnderage and
Pregnant 1.15amWorlds
Craziest Fools 1.45amJosie: My
Cancer Curse 2.45am
EastEnders Greatest Hits
4.15am-5.15amThe
Apprentice: The Final
E4
7pmHollyoaks 7.30pmHow I
Met Your Mother 8pmFriends
9pmOne Tree Hill 10pmDirty
Sexy Things 11pmTool
Academy 12.05amMy Name Is
Earl 1amHow I Met Your
Mother 1.25amGlee
2.10amTool Academy 3.05am
Demetri Martin: Person 3.50am
Heartland 4.35amThe Class
4.55am-6amSwitched
HISTORY
7pmAmerica: The Story of the
US 8pmPawn Stars 10pm
American Pickers 12amPawn
Stars 1amAmerican Pickers
3amAmerica: The Story of the
US 4amMega Disasters
5am-6amIce Road Truckers
DISCOVERY
7pmMythbusters. Whether a
car can survive a 4,000ft drop.
9pmBear Grylls: Born Survivor
10pmTornado Road 11pm
American Chopper: Senior
Versus Junior 12amBear Grylls:
Born Survivor 2amTornado
Road 3amDeadliest Catch
3.50amWildest Africa 4.40am
Weird or What? 5.30am-6am
Destroyed in Seconds
DISCOVERY HOME &
HEALTH
7pmBringing Home Baby 8pm
Little People, Big World 9pm
Little Parents, First Baby 10pm
999 Emergency 11pmA&E
12amLittle Parents, First Baby
1am999 Emergency 2amA&E
3amLittle People, Big World
4amA Baby Story 5am-6am
Bringing Home Baby
SKY1
8pmRoad Wars 9pmCop
Squad 10pmSpartacus: Blood
and Sand 11.15pmWall of
Fame 11.45pmBrit Cops:
Frontline Crime UK 12.45am
Ross Kemp on Gangs 1.40am
Stargate Atlantis 3.10am
Danny Dyers Deadliest Men 2:
Living Dangerously 4amAirline
4.55amFamily Show
5.10am-6amSell Me the
Answer
BBC2 ITV1 CHANNEL4 CHANNEL5
S
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&
C
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show: Best of
Britain
7.30pmFake Britain: BBC
News
8pmEastEnders
8.30pmGerry and the GPs
Panorama 9pmNew Tricks 10pm
BBC News 10.25pmRegional News
10.35pmA Question of Sport
11.05pmIn with the Flynns
11.35pmThe Celebrity Apprentice
USA 12.25amSign Zone: A History
of Celtic Britain 1.25amAnimal
24:7 2.10amAn Island Parish
2.40amSaints and Scroungers
3.10am-6amBBC News
6pmEggheads
6.30pmGreat British Railway
Journeys
7pmThe Truth About Wildlife
7.30pmCHOICE Julia
Bradburys Canal Walks
8pmUniversity Challenge
8.30pmAntiques Master
9pmThe Life of Muhammad
10pmQI
10.30pmNewsnight: Weather
11.20pmTorchwood: Miracle
Day
12.15amThe Tudors
1.10amBBC News 3.10amThe
Super League Show3.40am-6am
Close
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmCoronation Street
8pmCountrywise Kitchen
8.30pmCoronation Street
9pmCHOICE Show Me the
Funny
10pmITV News at Ten
10.30pmLondon News
10.35pmFILMSmokin Aces:
2007.
12.30amThe Zone: ITV News
2.35amNightwatch with Steve
Scott 3.25amITV Nightscreen
4.35am-5.30amThe Jeremy Kyle
Show. Guests air their differences.
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmHow to Buy a Football
Club: Dispatches
9pmCHOICE Embarrassing
Bodies: Teen Special
10pmSirens 11.05pmComing Up:
Home 11.40pmChris Moyles Quiz
Night 12.30amExample: Video
Exclusive 12.35amWakestock
Festival 1.05amEuropean Poker
Tour 2am24 Hours in A&E
2.55amEmbarrassing Bodies
3.50amHill Street Blues 4.40am
One Tree Hill 5.25am-5.55am
Wogans Perfect Recall
6pmHome and Away
6.25pmOK! TV
7pm5 News at 7
7.30pmHow Do They Do It?:
5 News Update
8pmPolice Interceptors: 5
News at 9
9pmFILMBad Boys: Action
thriller, starring Will Smith and
Martin Lawrence. 1995.
11.30pmFILMNational
Security: 2003.
1.10amSuperCasino 4amMeals in
Moments 4.10amMichaelas Wild
Challenge 4.55amRough Guide to
Weekend Breaks 5.10amWildlife
SOS 5.35am-6amHouse Doctor
1 2 3 4 5 6
7 8
9
10 11 12
13 14 15 16
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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.
COFFEE BREAK
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 Subject matter of a
conversation (5)
4 Country, capital
Kathmandu (5)
7 Back part of
the neck (4)
9 Become worse or
disintegrate (11)
10 Young people (6)
12 Professional
charges (4)
13 Quarrel about
petty points (4)
14 Safe place (6)
17 Morbid fear of
open spaces (11)
20 James ___, US lm
actor (1931-1955) (4)
21 Nude (5)
22 Ermine in its brown
summer coat (5)
DOWN
1 Childs toy bear (5)
2 Generally
incompetent (5)
3 Motor vehicle (3)
4 Prex meaning recent
or modern (3)
5 Flat upland (7)
6 City on the River
Aire (5)
8 Very narrow band
pattern in cloth,
especially of the type
used for formal suits (9)
11 Discharge from the
priesthood (7)
13 Locomotive (5)
15 Forepart (5)
16 Raise to a higher
rank or position (5)
18 Append (3)
19 Features (3)
R
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S Q U I B A D D L E
E S R A E
C S C A L L Y W A G
T H R O W D D
O F L O O R E
R E E F U E A R L
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Lifestyle | TV&Games
CITYA.M. 18 JULY 2011 20
Sport
21 CITYA.M. 18 JULY 2011
BRITAINS Mark Cavendish tight-
ened his grip on the top sprinters
green jersey by winning his fourth
stage of this years Tour de France.
The HTC-Highroad rider
pounced in the final 200m of the
193km route from Limoux to
Montpellier to claim the 19th stage
victory of his career.
Cavendish, 26, is now equal sixth
in the all-time list of stage winners
in the legendary race, with the
only man ahead of him from the
last 25 years being seven-time
champion Lance Armstrong.
Yesterdays triumph ensured the
Isle of Man racer retained the green
jersey and puts him in pole posi-
tion to win it for the first time
when the Tour reaches its climax
in Paris at the weekend.
Cavendish praised his team, who
put him in position after the pelo-
ton had reeled in a breakaway by
Quick Steps Niki Terpstra.
The guys are like motorbikes,
he said. It was a difficult and tech-
nical finish today. The guys kept
together. Theyre an incredible
group, Im so, so proud of them.
Cavendish, who beat American
Tyler Farrar, of Garmin-Cervelo,
and Alessandro Petacchi, of
Lampre-ISD, in the dash for the
line, now boasts a 37-point lead
over green jersey rival Jose Joaquin
Rojas with six race days left.
Frenchman Thomas Voeckler, of
Europcar, retained the yellow jer-
sey and maintained his lead of one
minute and 49 seconds over Frank
Schleck, of Leopard-Trek.
Cavendish joy as win No19
tightens green jersey grip
NATIONAL selector Geoff Miller has
backed under-pressure Stuart
Broad to rediscover his best form in
time for the start of Englands Test
series against India this week.
Broads frustrating winter he
missed the final three Ashes Tests
and the denouement of Englands
World Cup campaign through
injury has been followed by an
equally fruitless start to the
summer.
The 25-year-old strug-
gled for wickets in the
recent Test series
against Sri Lanka
and was dropped
from the deciding
match of the one-
day series against the
same opponents.
Broad has been includ-
ed in a 12-man squad ahead of
Thursdays first Test at Lords and
will vie for a place in the team with
the re-called Tim Bresnan, who was
selected ahead of Steven Finn.
Englands freshly appointed
Twenty20 captain rediscovered
some semblance of form with his
county side Nottinghamshire
against Somerset last week and
Miller was impressed with
Broads (left) response as he
took match figures of 6-162.
We watched him bowl here
at Trent Bridge in the four-day
game. There were signs he
was getting back to where
he was, said Miller.
We know what he is
capable of doing, and
when he puts on that
England shirt we feel
sure he will show
exactly that and pro-
duce the goods and
make it difficult for India.
They [Broad and Bresnan] are
two bowlers who can produce on
the day, and we are looking for-
ward to them producing at Lords.
Pace and bounce would be nice
for our bowlers certainly. Weve got
a strong batting line-up. But its
about producing on the day.
Weve got Matt Prior coming in
at number seven, which is special.
Were quite happy with our batting
strength, and also with our bowl-
ing strength as well.
Miller backs Broad
to rediscover form
BY JAMES GOLDMAN
CRICKET

BY FRANK DALLERES
CYCLING

SPORT | IN BRIEF
Daley disappointment in China
DIVING: Britains Tom Daley and Pete
Waterfield had to settle for sixth place
in the 10m synchro final at the Fina
World Championships in Shanghai. An
illness to Waterfield disrupted their
preparation for a competition won by
China, with Germany second.
Mancini hits back at Wenger
FOOTBALL: Manchester City boss
Roberto Mancini has defended his pur-
suit of Samir Nasri, after Arsenal man-
ager Arsene Wenger accused the
Italian of unsettling his player. I said
only that Nasri [is a] good player and I
said also that Nasri is under contract
with Arsenal, said Mancini. I dont
know why hes upset, but only this.
Dettori snatches Irish Oaks
HORSE RACING: Frankie Dettori led
Newmarket 1000 Guineas winner Blue
Bunting to a dramatic late victory in
the Irish Oaks at the Curragh yester-
day. The 5-2 shot, from Sheikh
Mohameds Godolphin stable, pipped
Jim Bolgers Banimpire at the post,
with the favourite, Wonder of
Wonders, in third place.
Samoa stun Aussies in Sydney
RUGBY UNION: Australias Tri-Nations
preparations suffered a major blow
yesterday when they lost to Samoa on
home soil for the first time ever.
Leicester winger Alesana Tuilagi
scored the first try for Samoa in a 32-
23 win at Sydneys Olympic Stadium.
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email sport@cityam.com
STRAUSSS TAUN-TON: SKIPPER BACK IN THE RUNS
ENGLAND captain Andrew Strauss laid down a significant marker ahead of the upcoming
Test series against India with an unbeaten century against the tourists for Somerset at
Taunton. Strauss, who struggled against Sri Lanka earlier this summer, finished unbeaten on
109 not out to add to his first innings 78. India, chasing a nominal 441 to win, finished 69-0
before rain brought about an early finish to a match which ended in a draw. Picture: GETTY
Andrew Strauss (C), James Anderson,
Ian Bell, Tim Bresnan, Stuart Broad,
Alastair Cook, Eoin Morgan, Kevin
Pietersen, Matt Prior (WK),
Graeme Swann, Chris Tremlett,
Jonathan Trott.
ENGLAND SQUAD | FIRST TEST V INDIA
Sport
NORTHERN IRELANDS Darren
Clarke dedicated his Open victory at
Royal St Georges to his children
before promising to celebrate a huge-
ly popular and emotional first Major
success in the grand manner.
The 42-year-old became the oldest
winner of golfs greatest prize since
1967, carding a final round of 70 in
typically testing conditions to fend
off a challenge from American duo
Dustin Johnson and Phil Mickelson
and win by three shots.
Afterwards a tearful Clarke, who
became the third player from
Northern Ireland to win a Major in
the space of 13 months, paid tribute
to his two sons from his marriage to
Heather, who died after a long battle
against breast cancer five years ago.
Its for the kids, said Clarke, who
famously broke down after helping to
clinch the 2006 Ryder Cup the first
event he played following Heathers
death. They played golf at Royal
Portrush this morning and were
watching on TV.
In terms of whats going through
my heart, theres obviously some-
body who is watching down from up
above there, and I know shed be very
proud of me.
Shed probably be saying, I told
you so. But I think shed be more
proud of my two boys and them at
home watching more than anything
else. Its been a long journey to get
here. Im 42 and Im not getting any
younger.
But Ive got here in the end. It may
be the only Major that I win, it may
not be the only Major that I win, but
at least Ive gone out there today and
did my best, and my best was good
enough to win.
Clarke was playing the 54th major
of his career and had not had a top 10
finish in any of them for a decade,
but did claim his 13th European Tour
title in Majorca in May.
I won six weeks ago and the more
you put yourself in winning positions
the more comfortable you get with it
and Ive been very comfortable with
myself this week, Clarke added.
That includes being somewhat
overweight and notoriously fond of a
drink he was immediately handed a
pint of Guinness in his press confer-
ence but the Ulsterman claimed he
was planning to start a diet on
Monday.
Im on Weight Watchers tomor-
row morning, he said. Im at
Chubbys apartment (his manager
Andrew Chandler), so Im going eat
and drink as much as I want tonight.
Ill probably get bored with it in a
week and give up. I think this could
probably be a bad week for me to try
and start.
I think theres five points in a pint
of Guinness, I think its a real bad
week for me to start.
His next tournament will be the
Irish Open in Killarney from 28 July -
31, and Clarke added: I will be in
Killarney. I may not be sober for the
Irish Open, but I will be in Killarney.
Golden oldie:
Clarke seals
a first Major
at long last
BY JAMES GOLDMAN
GOLF

Darren Clarke (Northern Ireland) -5

Phil Mickelson (USA) -2
Dustin Johnson (USA) -2
Thomas Bjorn (Denmark) -1
Chad Campbell (USA) Par
Anthony Kim (USA) Par
Rickie Fowler (USA) Par
Raphael Jacquelin (France) +1
Sergio Garcia (Spain) +2
Simon Dyson (England) +2
Davis Love III (USA) +2
Steve Stricker (USA) +3
Martin Kaymer (Germany) +3
THE OPEN| FINAL LEADERBOARD
KEY MOMENTS | HOW THE OPEN WAS WON AND LOST
14.39: Clarke moves to -6 with a
birdie at the second hole and follows
it up with a fine par-saving effort at
the third.
15.03: Mickelsons charge gathers
pace with a birdie at the sixth - his
third of his final round and Clarkes
lead is cut to two shots.
CHELSEA manager Andre Villas-Boas
has vowed that Belgian goalkeeping
prodigy Thibaut Courtois will not be
his last signing of the summer.
Courtois, 19, is expected to com-
plete his 8m move from Genk this
week, becoming the first player to
arrive since Villas-Boas took charge
last month.
The Portuguese is not finished
there, with Tottenham playmaker
Luka Modric still on his shopping list
and a replacement sought for injured
midfielder Michael Essien.
Another highly-rated Belgian
youngster, 18-year-old Anderlecht
striker Romelu Lukaku, is also on the
Blues radar, although there is compe-
tition for his signature.
However Villas-Boas, whose team
beat Portsmouth 1-0 on Saturday in
his first match in charge, insists he
has no desire to impose drastic
changes on a side that finished sec-
ond in the Premier League last sea-
son.
I think it is pretty obvious that we
will go into the market at one time or
the other but not with radical
changes to the team. The team will
keep itself [together] and most of the
players, he said.
I am still evaluating things at the
moment. It is not that I have to
change things radically and I will take
it step by step. Chelsea jet out to Asia
this week for a four-match tour, dur-
ing which Villas-Boas hopes to firm
up his plans for the squad.
The former Porto boss would like to
have any signings sewn up by early
August, a week before the new league
season begins, but admits he could
make late swoops nearer the 31
August transfer deadline.
He added: The market always gets
very frenetic in the last days and you
never know what will happen.
Villas-Boas is at pains to praise
England Under-21 striker Daniel
Sturridge, who shone on loan at
Bolton last season, but is still ponder-
ing whether to send him away for
another spell.
This is one of the decisions we
have to take, he said.
Chelsea look to have missed out on
one long-term target in Brazil for-
ward Neymar, who is set to join Real
Madrid for 40m, although his agent
said yesterday that Barcelona had
made a rival offer.
Villas-Boas plans to keep spending after landing Courtois
BY FRANK DALLERES
FOOTBALL

15.37: Mickelson drains an eagle put

at seven to gain a share of the lead
but moments later Clarke responds in
kind to restore his two shot cushion.
16.10: Mickelson drops his first shot
of the round at the 11th the start of
a run of four bogeys in six holes as
his challenge begins to fade.
17.12: By the 14th Johnson has
emerged as Clarkes main threat, but
he puts his second shot out of bounds
and its the Ulstermans to lose.
18.13: With a four shot lead and two
to play Clarke can afford to play it
ultra safe. He makes two bogeys at 17
and 18 but it matters not one bit.
ANOTHER TOUR WIN
FOR GREEN MACHINE
CAVENDISH CLOSES IN ON
SPRINT KING TITLE: P21
23
Clarke had gone 10
years without finish-
ing in the top 10 of a
Major event Picture:
ACTION IMAGES
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