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Issue 1,448 Wednesday 17 August 2011
Certified Distribution
04/07/2011 till 31/07/2011 is 93,093
GERMAN chancellor Angela Merkel
rocked investors last night with a
shock commitment to push for a EU-
wide financial transactions tax, often
known as a Tobin tax.
The plans for a Europe-wide levy
would knock the Square Mile, threat-
ening to push even more jobs to
lower-tax corners of the global mar-
ket.
The City could expect a hit to the
tune of 20bn a year, according to the
Robin Hood Tax campaign, which lob-
bies in favour of the charge.
Speaking alongside French
President Nicolas Sarkozy in Paris last
night, Merkel said: French and
German finance ministers will table a
joint proposal at the EU level in
September for a tax on financial
transactions. This is a priority for us.
The move intended to raise gov-
ernment funds and mitigate market
instability has been pushed hard in
Brussels by anti-capitalist groups and
trade unions, yet faced criticism fol-
lowing Merkels surprise statement.
Tobin taxes dont reduce market
volatility, they simply act as a blind-
fold, said Sam Bowman of the Adam
Smith Institute, arguing that the tax
could increase asset bubbles. Free
exchange allows the market to incor-
porate new information into asset
prices, and Tobin taxes just distort the
real world information that the price
system conveys.
In a joint statement that endorsed
further integration of Eurozone
states, Sarkozy also said work was
beginning on a common tax on com-
panies in terms of the tax base as well
as in its rate for German companies
and French companies.
We need a stronger interplay of
financial and economic policy in the
Eurozone, concurred German leader
Merkel.
Unimpressed markets slumped
during the Franco-German confer-
ence as the two leaders failed to reas-
sure investors over the Eurozone debt
crisis. After three days of gains, equi-
ties across the pond sank as Merkel
and Sarkozy ploughed their way
through the public conference.
The Dow Jones industrial average
shed 164 points, or 1.43 per cent,
while the Nasdaq lost more than two
per cent, before recovering slightly.
The euro also lost ground against
the dollar, falling by 0.3 per cent at
one point, as the core Eurozone lead-
ers called for more political and fiscal
integration, yet failed to outline solid
solutions to the escalating debt crisis.
Earlier in the day the Eurozone was
hit by weak estimates for GDP growth
in the second quarter of the year. The
French economy is thought to have
stagnated, while Germany expanded
by just 0.1 per cent.
MORE: P18-19 ALLISTER HEATH: P2
CITY SUPRTAX
BY JULIAN HARRIS
TAXATION

PLANS FOR EUROPE-WIDE LEVY WOULD HIT SQUARE MILE

A NEW EUROZONE PRESIDENT
A real economic government for the
Eurozone made up of heads of state. It
will elect a president every 2.5 years.
Current EU chief Herman Van Rompuy
was proposed to be the first president.
FINANCIAL TRANSACTIONS TAX
A priority for the leaders, it will be for-
mally tabled in September at the EU.
A GOLDEN RULE ON PUBLIC DEBT
All members constitutions to oblige their
governments to set targets for budgets
to be balanced over time.
MORE POWER GIVEN TO THE EC
When the European Commission criticis-
es a profligate member state, the coun-
try must not be able to put aside the
warning, but must restrain spending.
EURO CRISIS | THE MERKEL-SARKOZY PLANS THAT FAILED TO LIFT THE MARKETS
P
i
c
t
u
r
e
:

G
E
T
T
Y
News
2 CITYA.M. 17 AUGUST 2011
Sage eyes $1bn Aussie rival
SAGE is in the running to buy
Australian accountancy software
company MYOB (Mind Your Own
Business) in an increasingly rare
example of a UK-based firm attempt-
ing to take control of a major foreign
asset.
It is understood Bain Capital and
Kohlberg Kravis Roberts (KKR) have
also placed final bids for the firm,
which is expected to fetch more than
$1bn (610m).
Private equity firms Archer Capital
and HarbourVest Partners, which
bought MYOB for about 287m in
2008, are understood to have hired
UBS to advise on the sale.
In the first quarter of last year the
number of foreign firms bought by
UK-based companies, and the amount
spent on them, fell to their lowest
level in more than 20 years.
The total outward investment for
2010 fell 75 per cent year-on-year to
just 6.7bn.
In contrast, a number of multi-bil-
lion pound firms have been snapped
up by foreign investors. Earlier this
month Northumbrian Water was
bought by Hong Kong tycoon Li Ka-
shings Cheung Kong Infrastructure
Holdings for 2.4bn.
Last year Cadbury was taken over
by US-based Kraft in an 11.9bn deal.
And these are eclipsed by Telefonicas
18bn deal for O2 in 2005. Sage,
which has a market value of 3.4bn,
is a supplier of business management
software and related products and
services, mostly for small and medi-
um-sized companies.
It has grown through acquisition,
typically moving into new markets by
buying a local provider of software,
and now has more than 6m cus-
tomers in over 50 countries.
The Newcastle-based group has not
struck any major deals in the last
three years, choosing instead to pay
down debt, but chief executive Guy
Berruyer said in May that M&A was
still part of its strategy.
Sage yesterday confirmed it is con-
sidering a potential acquisition but
stressed there is no guarantee the bid
will proceed. Sage shares dropped by
just over one per cent.
BY STEVE DINNEEN
TECHNOLOGY

Merkozys first outing fails to impress

IT was almost a case of goodbye
Angela Merkel and Nicolas Sarkozy;
welcome Merkozy, the new Franco-
German super-politician. Yesterdays
summit was classic Euro-fudge: radi-
cal and possibly disastrous proposals
camouflaged by the fact that some
other, equally disastrous proposals,
were rejected. At any other time, the
news that France and Germany could
harmonise their corporation tax rates
by 2013 would have been deemed
hugely significant and a massive,
blind leap into ever-closer EU centrali-
sation; but because the issuance of
common Eurozone-backed euro
bonds was rejected, for the time
being, many commentators dismissed
the announcements as a damp squib.
Merkel made it clear that such bonds
would be possible but only once the
Eurozone was more integrated.
She also made it clear that the
European financial stability facility
(EFSF) would not see its firepower
expanded from the current 440bn.
Whether such sentiments survive the
next Italian or Spanish scare remains
to be seen. Merkel is right to want to
protect taxpayers but she needs a
plan B. At some point, the European
Central Bank, which bought 22bn in
Italian and Spanish bonds last week,
will panic; and the EFSF will run out
of money. Either all countries will be
bailed out forever and therefore a
bigger EFSF or a Eurobond is needed
or countries will be allowed to go bust.
If the latter, then a blueprint for an
orderly default and euro exit is
urgently needed, or else the conse-
quences will be catastrophic. Sadly, we
saw only denial and delay yesterday.
The other major announcement
was that Germany and France will
unveil plans for a pan EU Tobin tax on
financial transactions by September.
This is a declaration of war on the
City, for which trading bonds, equi-
ties, currencies, commodities and
derivatives amounts to huge business
and sustains tens of thousands of jobs
and billions in income tax revenues.
Introducing a Tobin tax within the EU
would send these jobs to New York or
Singapore, while raising virtually no
money. Even were it imposed globally,
a Tobin tax would slash transaction
volumes and make markets less liq-
uid. Germany which grew just 0.1
per cent in the second quarter, and
France which failed to expand
would suffer a bit (their biggest com-
panies would have to pay more to raise
capital or operate in the currency mar-
kets) but the UK would be tipped into
a catastrophic recession.
France and Germanys long-term
plan appears to be to merge, forming
a nucleus for an ever more integrated
Eurozone. They want their taxes har-
monised because they hate the fact
that countries must compete for peo-
ple and capital. Sarkozy dreams of a
cartel of governments, which would
give politicians more power over peo-
ple. The plans for a real economic
government for the Eurozone, on the
other hand, were little more than win-
dow-dressing, with heads of govern-
ment meeting twice a year, and thus
achieving nothing. Introducing a con-
stitutional balanced budget amend-
ment would be good but as we know
from previous golden rules, including
the laughably ineffective one intro-
duced by Gordon Brown, they can eas-
ily be fiddled unless an independent
body polices the budget. The problem
is that there will be no extra sanctions
to back up the new proposed amend-
ments. All in all, lots of bad ideas
and some useless ones. No wonder
Merkozys first outing didnt impress.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Sage boss Guy Berruyer said in May acquisitions remain part of his strategy
NEWS | IN BRIEF
BoA to shed real estate assets
Bank of America is in exclusive talks to
sell the bulk of Merrill Lynch's boom-
time real estate investments to
Blackstone for up to $1bn (607m). The
sale is still weeks away and would com-
prise between $800m and $1bn of
unwanted property investments in
Europe, the US and South America. The
sale is part of the US bank's efforts to
dispose of non-core assets to clear up its
balance sheet and bolster capital ratios.
BofA declined to comment, while
Blackstone did not return calls.
ABN Amro sells private bank arm
ABN Amro is selling its Swiss private
banking operation to Union Bancaire
Privee for an undisclosed price. The deal,
announced yesterday, will see UBP com-
plete the purchase in the fourth quarter
of the year. ABN Amro had 11bn
(9.6bn) in client assets under manage-
ment at the end of this years first quar-
ter. The acquisition will see UBP add 20
per cent to its overall assets under man-
agement and expand its core Swiss pri-
vate banking operation. ABN Amro was
advised by JP Morgan. Banca Leonardo
and Caurus Partner advised UBP.
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
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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
ANALYSIS l Sage
p
Jun Jul Aug
250
290
280
260
270
240
230
249.20
16 Aug
CITIC ARM TO PRESS AHEAD WITH HK
LISTING
Citic Securities is to go ahead with a
planned Hong Kong listing that could
raise up to $2bn for the Beijing-based
financial services group. Bankers say
that the listing is likely to take place
by the beginning of September. The
decision comes as many other issues
have been pulled in the face of mar-
ket volatility.
WEST COAST RAILWAY SWELLS UK
STATE COFFERS
The government has received a record
payment from a long-distance rail
operator, with Virgin Trains paying
110m for running the London to
Glasgow service last year. The West
Coast railway line, which carries 28m
passengers a year between London
and Glasgow, is now the most prof-
itable long-distance franchise in
Britain after Virgin turned a 40m
subsidy received from the govern-
ment last year into a 110m payment
on 31 March.
REGULATOR CENSURES BAYER FOR
DRUGS TWEETS
Bayer has been sharply reprimanded
by the Uk pharmaceutical industry
regulator for using Twitter to pro-
mote two high-profile prescription
medicines to the public, in a pioneer-
ing case highlighting the dangers of
social media for marketing.
BARCAP STAR TO GO AMID PROP
TRADING EXODUS
Star banker Todd Edgar and his team
of nearly a dozen fellow commodities
traders are to leave Barclays as part of
a stream of cuts designed to shed
overheads. He and his colleagues
now plan to set up a hedge fund by
the end of the year. People close to the
situation said it had become unten-
able for BarCap to employ prop
traders in the light of US Dodd-Frank
leglislation.
CHALLENGE TO EXCHANGE DEAL OVER
BEIRUT BOMB
Deutsche Brses proposed takeover
of the owner of the New York Stock
Exchange is being challenged by the
families of victims of a 1983 terror
attack in Beirut, who are suing a sub-
sidiary of the German exchange oper-
ator for $250m. The case centres on
Clearstream Bank, a securities depos-
itory owned by Deutsche Brse. It is
being sued by nearly 1,000 family
members and survivors of the 1983
bombing of a US Marine Corps bar-
racks in the Lebanese capital, which
killed 241 US servicemen.
IRISH SUPPLIER PINS HOPES ON AN
AMERICAN ROAD TRIP
Big infrastructure projects in the US
could give the Irish building materi-
als group CRH a boost as it fights
against high raw material costs and
sluggish growth prospects.
HIGH EARNERS INCREASE THEIR USE
OF OVERDRAFTS
A third of high-income families now
rely on overdrafts of more than
1,000, compared with 15 per cent in
2008. According to a three-year survey
from Experian, the information serv-
ices company, 52 per cent of these
families regularly borrow money
using their overdrafts. This results in
higher repayments, as rates of interest
on overdrafts tend to be higher than
on other credit products.
DYSON SAYS LACK OF ENGINEERS IN
THE UK COULD FORCE VACUUM MAKER
OFFSHORE
Sir James Dyson, the inventor and
businessman behind the eponymous
vacuum cleaner, has warned that he
may be forced to take his research and
development operations abroad if
Britain does not produce more engi-
neers.
SPAIN'S GROWTH UPTICK SLOWS
Spains tentative economic recovery
lost momentum in the second quar-
ter as the Eurozones fourth-largest
economy suffered the effects of a
deepening sovereign-debt crisis, offi-
cial data showed yesterday. Spains
gross domestic product rose at a quar-
terly 0.2 per cent rate in the second
quarter, down from a 0.3 per cent
expansion in the first quarter, as
falling domestic demand was partial-
ly offset by booming exports, Spains
national statistics institute INE said.
On an annual basis, second-quarter
GDP rose 0.7 per cent.
HONDA STRUGGLES WITH SUPPLY
Honda Motors US dealers say they
are headed for their most difficult
month of sales since the 11 March
earthquake in Japan disrupted pro-
duction at the auto makers factories
at home and in North America.
WHAT THE OTHER PAPERS SAY THIS MORNING
STUBBORN inflation bounced back up
in July, official figures revealed yester-
day, hitting 4.4 per cent in the con-
sumer price index (CPI) up from 4.2
per cent in June.
Yet despite being forced to write
another letter to chancellor George
Osborne explaining why inflation
has remained more than one per cent
above target for the 19th straight
month Bank of England governor
Mervyn King (right) appeared to brush
off the price pressures and focus on
downside risks to the economy.
Recent developments in world
stock markets and in the euro area are
of particular concern, King wrote.
There is a risk that this [Eurozone cri-
sis] could lead to further severe stress
and dislocation in financial markets.
The Bank nonetheless expects CPI
inflation to soar past five per cent in
the coming months two and a half
times its two per cent target rate.
Andrew Goodwin of the Ernst &
Young Item Club said: Were likely to
see inflation rise significantly over the
next couple of months as the large
energy price hikes begin to kick in.
Four of the big six suppliers have
already announced large price hikes
with the other two likely to follow.
Inflation continues to hammer the
nations savers, according to the web-
site Moneyfacts: 10,000 invested five
years ago allowing for average interest
and tax at 20 per cent would have the
spending power of just 9,374 today, it
calculated. This time last year basic
rate taxpay-
ers had a
choice of 91
accounts to
negate the
effects of
i nf l a t i o n,
today there are
just eight and all
are fixed-rate cash
ISAs.
The retail price
index (RPI) and
tax and price
index (TPI) were
unchanged, at
five per cent
and 4.6 per cent
respectively, the
Office for
N a t i o n a l
Statistics said.
UKs inflation
springs back
again to 4.4pc
RUPERT Murdoch must have been
confused or misinformed over the
role of Harbottle & Lewis in the phone
hacking investigation, the law firm
claimed yesterday in an intervention
that looks set to reignite the row.
The firm dismissed Murdochs
claims that a 2007 report it carried out
suggested phone hacking was not
widespread at News International.
Harbottle & Lewis said its report
focused only on an employment dis-
pute. The claim was part of a raft of
new submissions released by the
media select committee yesterday.
Chairman John Whittingdale MP
said he is minded to recall James
Murdoch before the committee after
the former News of the World head
lawyer, Tom Crone, and ex-editor Colin
Myler both said he was mistaken to
claim he had no knowledge of a smok-
ing-gun email that allegedly proved
phone hacking was not limited to a
single rogue reporter.
Meanwhile, the newspapers former
royal editor Clive Goodman, the only
journalist to be jailed over the scandal,
threw further fuel on the flames with
claims that phone hacking was wide-
ly discussed at editorial meetings.
In a letter written four years ago but
published for the first time yesterday,
Goodman said phone hacking was
openly discussed in front of then-edi-
tor Andy Coulson.
New evidence set to reignite
tabloid phone hacking row
UTILITY group npower is raising
household energy bills by 12.2 per
cent from October, putting increased
pressure on consumer spending
already dampened by the rising cost
of living.
The utility said the increases,
which work out to 37p extra per day
for dual-fuel customers, were due to
volatile trading conditions in whole-
sale energy markets compounded by
diminishing production from ageing
North Sea gas fields.
Scottish & Southern, E.ON and
Centrica have all hiked their retail
prices in recent months.
We are now forced to buy energy
on the volatile global wholesale mar-
ket, according to Kevin Miles, RWE
npower chief commercial officer.
World events have pushed up
prices, and we believe this trend will
continue, he added.
Consumer watchdog groups lashed
out the latest round of price increases
as a darkening economic backdrop
continues to squeeze household
budgets.
Customers didnt feel much bene-
fit when wholesale costs were low but
have seen prices rocket when costs
have gone up, said Adam Scorer,
director of external affairs at
Consumer Focus.
Npower slaps its customers
with big hike in energy bills
BY JULIAN HARRIS
UK ECONOMY

ENERGY

BY STEVE DINNEEN
MEDIA

News
3 CITYA.M. 17 AUGUST 2011
Health:
0.6%
Communi
cations:
0.8%
Alcohol
& Tobacco:
0.6%
Food &
non-alcoholic
beverages:
0
.3
%
Transport:
0
.6
%
Prices up
ANALYSIS l CPI inflation in July
Markets cool
over Googles
Motorola bid
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GOOGLES $12.5bn (7.6bn)
Motorola bid has lifted the global
technology M&A total for the year to
a lofty $125.7bn the highest level
of activity in the sector since before
the financial crisis.
Qatalyst Partners, fronted by dot-
com godfather Frank Quattrone, has
moved up to fifth in the tech adviso-
ry league-table after working on
four deals worth over $18bn, with
Motorola being the biggest in its his-
tory.
The purchase the biggest in
Googles history marks the second
largest M&A transaction involving
tech companies announced this
year, behind Microsofts acquisition
of Skype in May.
Total M&A activity for the year so
far stands at $1.8 trillion, a 31 per
cent increase on the same time last
year.
At $173.7bn for the year, telecoms
is the second most targeted sector in
global M&A, behind property
($186.5bn) and above healthcare
($172.4bn) in third.
Total telecoms deals are up two
per cent in the year to date.
Deutsche Bank is the leading advis-
er for global telecoms M&A in 2011
with $69.3bn.
Blockbuster deal boosts global
technology M&A past $125bn
TECHNOLOGY

News
4 CITYA.M. 17 AUGUST 2011
MARKETS were yesterday digesting the
implications of Googles shock $12.5bn
(7.6bn) bid for Motorola Mobility.
Google slumped 3.4 per cent, contin-
uing the cool reception after the
announcement on Monday. However,
investors across the sector appeared to
be cautiously optimistic, with hopes
that the bid will help to mitigate the
adverse effects of future patent battles.
In theory, companies using Googles
software are now less likely to run into
problems, with Google holding a size-
able portion of outstanding patents
and unlikely to take action against its
clients. This pushed stocks in Asian
phonemakers Samsung and HTC up
six and three per cent respectively.
Arch-rival Microsoft also gained on
hopes that a Google-led Motorola
could drive competitors to its
Windows Phone 7 mobile operating
system as an alternative to Android.
Blackberry-maker RIM traded slight-
ly lower yesterday after receiving a
bounce in the immediate aftermath of
the bid, with investors hoping it may
become a target for further industry
consolidation.
The bid has also been seen as a vali-
dation of Apple-style vertical integra-
tion, with Google hoping to
supercharge its future releases
through seamlessly merging its hard-
ware and software.
This could be especially important
in the race to develop a credible, and
saleable, alternative to the Apples
iPad. Motorolas Xoom avoided a criti-
cal mauling but has failed to set the
tablet market alight since its launch
earlier this summer.
BY STEVE DINNEEN
TELECOMS

ANALYSIS l Google
$
Jun Jul Aug
525
625
600
550
575
500
475
539
16 Aug
BlackBerry brand survives riots association
L
AST week saw one story domi-
nate the news and although the
bulk of the focus was on the riot-
ers, the areas and buildings
being looted, the police and the
politicians the one brand that was
continually being talked about was
BlackBerry.
It seemed that BlackBerry
Messenger was the communication
method of choice for the rioters, with
the free service allowing them to plan
among each other without police
tracking what they were saying.
On YouGovs BrandIndex there was
an immediate impact on the brand
buzz, with a drop from +10 last
Monday to -8 by Thursday.
It dropped from sixth (trailing
behind Apple iPhone, iPad, Samsung,
HTC and Android) to last of the 25
mobile phone and PDA brands as the
public heard negative news about the
phone.
It has now recovered some of the
ground and is back up to -2 and 21st
place.
Interestingly there was no dis-
cernible impact on the brand owner,
Research In Motion, suggesting that it
is very much the brand not the com-
pany that is known in the UK.
So BlackBerry buzz saw a steep
drop but encouragingly for the firm
there was little real decline in its
Index (a composite score of six key
measures Impression, Quality,
Value, Reputation, Satisfaction and
Recommendation) with a +22 score
on Monday that was still as high as
+20 by the end of the week and
remains there this week.
It looks like this was a case of peo-
ple hearing about a brand being asso-
ciated with something negative and
registering that, but the negative
news not actually impacting on how
they perceived the brand.
So for BlackBerrys owner it seems
that there was not much harm done
from its association with the rioters.
Stephan Shakespeare is chief executive of
YouGov
BRANDINDEX
STEPHAN SHAKESPEARE
ANALYSIS l Buzz
02/08/2011 05/08/2011 10/08/2011 15/08/2011
15.0
5.0
-5.0
Research
in Motion
Blackberry
ANALYSIS l Index
01/08/2011 05/08/2011 09/08/2011 15/08/2011
30.0
20.0
10.0
Research in Motion
Blackberry
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BBC Worldwide has sold its iconic
magazines portfolio, severing its 88-
year tie to the Radio Times.
It has agreed to sell BBC Magazines,
whose 62 titles worldwide include
Gardens Illustrated and CBeebies, to
Exponent Private Equity. It has also dis-
posed of its 50 per cent shareholding
in Indian joint venture Worldwide
Media to media firm Bennett,
Coleman & Co. Both deals combined
are worth a total of 121m.
As part of the deal, titles like Top
Gear, Good Food and Lonely Planet
will remain in the BBC stable but will
be published under contract by
Exponent.
Exponent will also acquire BBC
Magazines stake in subscriptions
manager Dovetail, distribution net-
work Frontline and specialist publish-
er Origin.
A BBC spokesman said the sale is
part of BBC Worldwides strategy of
focusing on its international opera-
tions and the development of its
mobile and DVD businesses. She added
the magazines business is in need of
investment that BBC Worldwide is not
in a position to make at this point.
BBC Worldwide chief executive John
Smith said: The deal offers the best
prospects for the magazines business
to continue on its path of success,
while we pursue a strategy increasing-
ly focused on international video and
digital services.
The consumer magazines market
faces a number of challenges, and this
transaction brings a focus and degree
of investment that BBC Worldwide
alone is unable to provide.
BBC arm sells
its magazines
in 121m deal
SHARES in Sportingbet surged seven
per cent yesterday after rival GVC
Holdings said it is in exclusive talks
regarding the possible purchase of
Sportingbets Turkish business.
Investors hope the sale, which will
fetch around 35m, could smooth the
way for Ladbrokes to take over
Sportingbet.
Ladbrokes made a preliminary offer
for Sportingbet in June, but analysts
suggested legal restrictions over the
Turkish website could hold them back.
Sportingbet said last month it was
reviewing strategic options in rela-
tion to the Turkish website and future
prospects with Ladbrokes.
GVC shares have been temporarily
suspended, in accordance with AIM
rules, as the transaction, if completed,
would be considered a reverse
takeover.
Espirito Santo analysts said in a
note: In our view, the sale of the
Turkish business would support both
the valuation and prospects of
Sportingbet being bought out by
Ladbrokes.
James Hollins at Evolution said the
disposal would be materially
enhance the likelihood of Ladbrokes
taking over the firm.
Sportingbet shares closed at 53.5p,
valuing the firm at 330m.
Sportingbet in
sale talks over
Turkish website
BBC Worldwide has sold its iconic magazine portfolio for a total of 121m
BY STEVE DINNEEN
MEDIA

GAMING

The BBC has been involved with the Radio

Times since its birth in 1923
Buyer Exponent says it believes the maga-
zines, which have performed well in a tough
market, have strong growth prospects.
FAST FACTS | BBC MAGAZINES
News
CITYA.M. 17 AUGUST 2011 5
Exponent Private Equity, the new owner of the Radio
Times and other BBC titles, invests in a wide range of UK
mid-market companies. The former owner of the Times
Educational Supplement was earlier this year part of the
consortium that bought Quorn from Premier Foods.
Exponents experience in the media and publishing world
also extends to PR group Gorkana, where it has been an
investor since 2006; recruitment media business GTI;
and digital publisher Magicalia.
It has also invested heavily in bed retailer Dreams and
transport deals site thetrainline.com.
Exponent director Richard Lenane (pictured) said
he wasdelighted with the BBC Worldwide
deal, which is still pending OFT approval. He
said: Exponent invests exclusively in market-
leading businesses that have strong growth
potential and great people. We believe that
BBC Magazines is such a business.
RICHARD LENANE | EXPONENT PRIVATE EQUITY
A BIDDING war for City broker and
wealth manager Evolution Group
looked increasingly likely yesterday
after it admitted it had received a
number of approaches.
Evolution has been viewed as up
for sale since it received an
approach from South Africa asset
manager Investec two weeks ago.
The news sparked the interest of
a number of finance groups includ-
ing Canadian stockbroker
Canaccord Financial, which also
admitted it was in early stage
takeover talks yesterday.
Evolution is a sought-after asset
due to the strength of its fast-grow-
ing private client wealth manage-
ment arm Williams de Broe.
I would imagine that lots of peo-
ple will be throwing their names
into the hat now, one industry
source told City A.M. It is not often
you get a 7.8bn block of private
client money becoming available.
Evolution is clearly up for sale and I
think everyone will be interested.
Evolution said that after
Investecs approach it had received
approaches from a number of other
parties interested in either part or
the whole of the company.
Potential bidders could range
from Canadian group RBC Capital
Markets to City wealth managers
such as Rathbones.
The news will pile pressure on
Investec to enter exclusive talks and
avoid a bidding war.
Canaccord said its interest
depended on obtaining a unani-
mous recommendation from the
Evolution Board and the satisfacto-
ry completion of due diligence,
among other requirements.
Evolutions shares closed up 9.1
per cent yesterday on the news.
Evo faces bid war as
fresh offers pour in
BY ALISON LOCK
BANKING

THE IPO of jewellery maker

Pandora came under further
attack yesterday when the Danish
financial market regulator referred
one of its advisers to the police.
Denmarks Financial
Supervisory Authority said Nordea
Bank Denmark had failed to report
the fact that it held a large finan-
cial position in Pandora prior to its
flotation last October.
Nordea Denmark was one of
four lead arrangers on the Pandora
IPO, alongside Goldman Sachs, JP
Morgan, Morgan Stanley, and
issued an investment analysis of
the company ahead of the float.
But it failed to disclose that at
the time it owned 3.9 per cent of
Pandora, worth an estimated
1.23bn Danish krone (145m). The
Danish FSA said it would ask the
police to investigate Nordea.
It is the FSAs evaluation that
the general disclaimer does not
sufficiently live up to the notice
requirements regarding the
announcement of significant
financial interests, it said.
Pandoras 1.1bn IPO last year
was feted as a landmark deal but
quickly soured on fears over its cost
base and sales mix.
Pandora IPO adviser gets referred to
Danish police over disclosure failure
RETAIL

News
6 CITYA.M. 17 AUGUST 2011
ANALYSIS l Pandora
DKK
9Aug 10Aug 11 Aug 12Aug 15Aug
250
150
50
44.90
16 Aug
ANALYSIS l Evolution
$
Jun Jul Aug
75
95
90
80
85
70
65
90.00
16 Aug
A NUMBER of investment
banks have been linked with
the potential cash-cow of
advising Manchester United
as it seeks a lucrative Far East
flotation.
It is understood Credit Suisse
has been hired to lead the listing
process, although Morgan Stanley
was also believed to be in the run-
ning to lead the IPO mandate. It is
not clear if any other banks will be
added to the advisory list.
Both Credit Suisse and Morgan
Stanley declined to comment, as
did Manchester United.
Whoever eventually wins the
privilege will be tasked with
achieving the maximum valuation
for a club whose worth varies wild-
ly depending on who you talk to.
A group of potential bidders
called the Red Knights valued the
club at 1bn but it is understood
the Glazers are hoping for a price-
tag of more than double that num-
ber. Analysts believe the true figure
is around 1.7bn.
POSSIBLE ADVISERS
CREDIT SUISSE
MORGAN STANLEY
Manchester
United could be
celebrating a
large scale float
soon
United plans $1bn
float in Singapore
MANCHESTER United is
preparing to launch an auda-
cious Singapore float in which
it could raise more than 600m.
The clubs controversial
American owners hope the IPO could
value their prized asset at more than
2bn, taking advantage of the huge
popularity of the Manchester
United brand in the east.
It is understood between 20
and 30 per cent of the club will
be made available to investors
in a float that could go through
before the end of the year.
Speculation has mount-
ed that Hong Kong would
be the preferred destina-
tion for an IPO after sev-
eral rumoured bids
from foreign investors
failed to materialise
earlier this year.
The IPO of a glob-
ally recognised brand such as
Manchester United would be a coup
for Singapore, which has been com-
peting with Hong Kong for interna-
tional listings.
Malcolm Glazer (pictured), whose
family also own American Footballs
Tampa Bay Buccaneers, took
Manchester United private following
a heavily leveraged 790m takeover in
2005. The club now has gross debts of
more than 500m.
This led to a long-running
fans protest, which culminated
in the formation of a group of
Red Knight rich businessmen
who said they would wrest con-
trol of the club.
However, their valua-
tion fell far short of
the Glazers and the
bid petered out.
Manchester United
declined to com-
ment on market
rumour and specula-
tion yesterday.
BY STEVE DINNEEN
BUSINESS OF SPORT

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THE research and development facili-
ty that was abandoned by pharma-
ceutical giant Pfizer will be given
enterprise zone status today, in a bid
to lure a new high tech firm to the
area by offering tax breaks and
relaxed planning rules.
Pfizers Kent base, which has been
renamed Discovery Park, was put on
the market in June, after the
American firm decided to close the
facility and make most of its 2,400
staff redundant.
Now the government is hoping it
can convince a new company to buy
the research laboratories and produc-
tion facilities by offering zero busi-
ness rates for five years, worth up to
275,000.
As an enterprise zone, the science
park will also benefit from higher
capital allowances, super-fast broad-
band, and simplified planning rules.
Pfizers decision to close the
research facility, announced in
February, came as a huge blow to the
government, which had pledged to
rebalance the economy away from
the City to high tech manufacturing
and engineering.
Meanwhile, the government will
announce 10 new enterprise zones
alongside the Discovery Park, in addi-
tion to the 11 it announced at the
Budget in March.
George Osborne, the chancellor, is
expected to say: It is time for us to
help every part of the country to
grow and realise its potential.
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BY DAVID CROW
POLITICS

News
8 CITYA.M. 17 AUGUST 2011
MORE NEWS
ONLINE
@
www.cityam.com
What needs to be done to stop
a repeat of last weeks riots?
THIS week, were asking members of
our Voice of the City panel what needs
to be done to prevent a repeat of last
weeks riots. Will the governments
plan for non-military national service
help repair broken communities, and
should convicted rioters be evicted
from their council homes or stripped
of their benefits?
We also want to know whether
members of the panel, which is spe-
cially recruited to represent a cross-
section of Londons business
community, think the Prime Minister is
right to talk of British society as bro-
ken.
And some have tried to pin part of
the blame on bankers and their bonus-
es. Is this a fair assessment?
Meanwhile, we want to know
whether the government is being too
soft or too tough when it comes to
meting out justice.
To have your say on these questions,
and others like them, apply to join the
panel today at www.cityam.com/panel
PoliticsHome.com PoliticsHome.com
In partnership with
Apply to join today at
www.cityam.com/panel
News
9 CITYA.M. 17 AUGUST 2011
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THE JOBS market in the City has been
left in a dismal state by economic
uncertainty coupled with a head-
count cull at a number of banks, an
employment survey out today claims.
Available roles in the financial sec-
tor dropped 10 per cent during July,
and candidates in the City were fight-
ing for 18 per cent fewer positions
than a year ago, Morgan McKinleys
monthly jobs monitor shows.
People already in work have shied
away from making the jump into the
jobs market, contributing to a 14 per
cent fall in new jobseekers in July
compared with last year.
Thanks in part to the summer lull,
the number of candidates tumbled
44 per cent compared with June.
The average salary for those secur-
ing new roles fell two per cent to
50,591 in July, and companies are
taking around two months to decide
on their preferred candidate com-
pared with just 10 days last year.
Andrew Evans of Morgan McKinley
said a perfect storm of economic
uncertainty, banking job cuts and dis-
appointing corporate results had
dampened the market in July.
City jobs market shrinks
BY MARION DAKERS
RECRUITMENT

EUROPES biggest clearing houses

will this morning announce plans to
offer coordinated four-way clearing
to their members, in a move
designed to streamline the process
and improve competition.
EMCF, EuroCCP, LCH Clearnet and
SIX x-clear will collaborate to offer a
full clearing choice by 1 January
2012, subject to regulatory approval.
Full interoperability will be avail-
able for all traded equities on Chi-X
Europe, with the exception of the
Spanish market.
This is a significant milestone for
the European equities market. Full
four-way interoperability has always
been one of our key goals and this
will further improve efficiencies in
pan-European equities trading, said
Alasdair Haynes, chief executive of
Chi-X Europe.
Share-trading platforms BATS
Europe and UBS MTF became the
first to offer clients a choice of clear-
ing provider earlier this month,
paving the way for competitors to
enter the race.
Previously, Europes exchanges
and trading platforms have only
used one clearing house, forcing
investors to channel trades through
the associated clearing providers and
paying whatever fees they demand-
ed.
Interoperability will mean partici-
pants can win market share by allow-
ing their clients to consolidate
business and hit higher volume dis-
counts.
The time is now to take the next
step in opening up the European
clearing landscape. Interoperability
will make European markets more
efficient and it is a tool to open up
the clearing and settlement silos in
Europe, said Jan Booij, chief execu-
tive of EMCF.
More choice
for clearing
house trades
DELL slashed its 2012 revenue fore-
cast as the outlook for technology
spending this year weakened, send-
ing its shares more than seven per
cent lower.
The personal computer maker
yesterday lowered its estimate for
full-year revenue growth to just one
to five per cent, from five to nine
per cent previously, adding that
sales this quarter would likely stay
flat.
Shares slid 7.3 per cent to $14.65
after hours, from a close of $15.80
on the Nasdaq.
The worlds number two PC
maker, which in May said it antici-
pated strong government spending
and a good back-to-school season,
recorded sales of just under $15.7bn
(9.5bn) in its fiscal second quarter
ended July.
Dell posted net income of about
$890m, or 48 cents a share, in the
quarter ended July, versus $545m,
or 28 cents a share, a year earlier.
Excluding certain items, it earned
54 cents a share.
From a market standpoint, clear-
ly theres a different demand
dynamic as you think about rev-
enue growth, Dell chief financial
officer Brian Gladden said. Its a bit
of an uncertain environment.
Industry executives warn that
corporate and government spend-
ing may have begun to wane on
fears of a second-half economic
growth slowdown, while a high job-
less rate pressures consumer
income.
But during its annual analysts
day in June, Dell executives pledged
to maintain its pace of
acquisitions having completed its
$960m purchase of Compellent in
February to gain access to corpo-
rate clients, and safeguard margins.
Dell slashes
its revenue
forecasts
The number of available roles has fallen sharply Picture: Micha Theiner/City AM
BY HARRY BANKS
TECHNOLOGY

BY ELIZABETH FOURNIER
TRADING PLATFORMS

THE Institute of Directors has

appointed Simon Walker as its next
director general. Formerly chief
executive officer of the British
Private Equity and Venture Capital
Association, Walker succeeds Miles
Templeman, beginning his seven-
year term in October.
Walker, who brings experience
from both business and political sec-
tors, has held senior executive posi-
tions at firms such as Reuters,
British Airways and the Brunswick
Group.
He is a council member of the
European Policy Forum and served
as communications secretary to the
Queen and special adviser to former
prime minister John Major.
Commenting on his appointment,
Walker said: I will be campaigning
for growth and the competitiveness
of British business.
Walker believes that the country
has an excessively high tax bur-
den, with an over-regulated labour
market, adding: Britain has lost its
competitive edge and radical reform
is the only route to sustainable
growth, stability and long-term job
and wealth creation.
Given his experience of the work-
ings of government, Walker should
be a valuable asset to the IoD.
The non-partisan group, founded
in 1903, aims to represent the inter-
ests of directors to government.
The former royal PR set to take charge at the IoD
BY LYDIA ELLIS
PROFILE

SIMON WALKER
News
10 CITYA.M. 17 AUGUST 2011
WALMART suffered its ninth con-
secutive sales fall last quarter
despite heavy discounting, as it
warned that the uncertain US eco-
nomic recovery was taking its toll.
Same-store sales at Walmart in
the US, excluding fuel, were down
by 0.9 per cent from a year ago.
However, net income rose 5.7
per cent in the second quarter to
$3.8bn (2.3bn). Total revenues
were up by 5.4 per cent to
$109.3bn.
Walmart, seen as a bellwether
for the performance of the US
economy, has shaken up its prod-
uct ranges and cut prices in a bid
to stimulate sales.
Bill Simon, chief of Walmarts
US business, said: We remain
concerned about the economic
pressure on our customers and
the uncertain impact it can have
on their shopping behaviour.
The worlds largest retailer
stressed its commitment to low
prices and widening its price gap
versus competitors, following ana-
lyst reports in recent weeks that
suggested those gaps have nar-
rowed in areas such as food.
Walmart said US same-store
sales improved each month dur-
ing the quarter. Fewer customers
visited Walmart US stores, but
those who shopped spent more on
average, the company said.
Sales fall at
Walmart...
BY JOHN DUNNE
RETAIL

NEWS | IN BRIEF
Sir Ken Morrison fined 210k
Former Morrisons chairman Sir Ken
Morrison has been hit with a 210,000
fine for failing to disclose his reduced
shareholding and voting rights to the
company and investors. The 79-year-
old businessman, who spent more than
50 years turning the business into the
UK's fourth largest supermarket chain,
reduced his stake in the company from
6.38 per cent to 0.9 per cent after he
stepped down in 2008. But he was
today fined by the Financial Services
Authority after he failed to inform the
supermarket chain that he had reduced
his holding in the company after selling
millions of pounds in stock.
Home Depot raises outlook
Home Depot, the worlds largest home
improvement chain, raised its fiscal-
year profit forecast for the second time
in three months yesterday as timely
promotions and renewed focus on
cheaper products helped it gain market
share from rival Lowes Cos. Home
Depot said it still expects fiscal-year
sales to rise 2.5 per cent. It forecast
earnings of $2.34 a share excluding
future stock repurchases, up from a
prior forecast of $2.24. In the second
quarter, Home Depots same-store
sales, or sales at stores open at least a
year, rose 4.3 per cent globally, includ-
ing a 3.5 per cent rise in US same-store
sales.
MCDONALDS European president
Steve Easterbrook (pictured) has left
the company to become chief
executive of Pizza Express, after
18 years at the fast food giant.
Easterbrook will join the
Gondola Group parent compa-
ny of the Pizza Express, Zizzi
and Ask restaurants from
October, replacing former
chief executive Mark
Angela at the helm of
its 384-branch pizza
chain.
Eas t er br ook s
departure means a
shake-up of
McDonalds exist-
ing management
structure, with
its executive vice president of global
supply chain and real estate develop-
ment Doug Goare taking on the
Europe job at the end of next month.
He will be responsible for oversee-
ing more than 7,000 McDonalds
in 40 European countries.
Goare will in turn be replaced
by Jose Armario, currently group
president of McDonalds Canada
and Latin America.
Easterbrooks appointment at
Pizza Express will see
Gondolas chief execu-
tive Harvey Smyth
return to his day job,
having taken on
responsibility for
the restaurant
group after
Angelas depar-
ture in early
July.
McDonalds in shake
up as Europe boss
swaps fries for pizza
ANALYSIS l Walmart
$
Jun Jul Aug
51
55
54
52
53
50
59
51.92
16 Aug
ASDA, which is owned by Walmart,
yesterday reported a narrow 0.5 per
cent like for like sales rise between 1
April and 30 June.
The company said it was pinning its
hopes for growth on its acquisition of
147 Netto stores.
Asda said sales growth accelerated
in the second quarter as its online
price guarantee, which undercuts
rivals by 10 per cent, proved popular
with cash-strapped consumers.
But figures released yesterday by
market research company Kantar
Worldpanel showed that Asdas mar-
ket share dropped from 17.6 per cent to
17.1 in the 12 weeks to 7 August.
Overall grocery sales rose by 3.8 per
cent year-on-year in the 12 weeks to 7
August, lower than the 5.2 per cent
grocery price inflation in the period.
But budget retailers Aldi and Lidl
have been benefitting from families
tightening budgets.
German chain Aldi now has a 3.6
per cent market share and Lidl 2.6 per
cent.
... as Asda loses
market share to
budget chains
BY JOHN DUNNE
RETAIL

Worlds largest retailer struggles in US

WITH annual revenues of $420bn
(256bn), Walmart is the worlds
largest company by sales. So it is
unsurprising that it tells us some-
thing about the global economy.
Its international business, which
accounts for just over a quarter of
sales, is booming. International
revenues grew by 16.2 per cent in
the second quarter, thanks to
strong performances in Mexico,
China and Brazil.
Things arent looking so good
in the US. After years of domi-
nance, Walmart, like America, is
losing ground to more dynamic
rivals. Dirt-cheap dollar stores,
upmarket convenience shops and
online retailers such Amazon are
chipping away at its market share.
Like-for-like revenues at US stores
have fallen in each of the last nine
quarters, although there are signs
they will turn positive again
before the end of the year.
Even if Walmart turns things
around, however, American sales
growth will be anaemic at best,
and its US revenues will start to
shrink again before long. Because
consumer-facing businesses are at
their best when they are fighting
for market share and winning it.
The most successful innovations
come from retailers who are
expanding, not those who are
managing decline.
Walmart will be a force to reck-
on with for many years to come,
at least internationally, but its
glory years in the US have passed.
BOTTOMLINE
Analysis by David Crow
SAKS SIGNALS GROWTH AMID VOLATILITY
LUXURY US department store operator Saks forecast same-store sales growth and better
margins for the rest of the year even as the volatile financial markets give it reason to be
cautious about autumn sales. Saks forecasted that same-store sales would rise by a mid-
to-high single-digit percentage in the second half of the fiscal year, which includes the hol-
iday season, when Saks gets 30 per cent of its annual sales. Picture: REUTERS
BY ELIZABETH FOURNIER
CONSUMER

The Capitalist
12
SINKING
FEELING FOR
MAROONED
TECH MOGUL
TRAGEDY was narrowly averted on
Monday night, after the sea almost
claimed the life of American businessman
George David in the Rolex Fastnet Race.
Shortly after rounding Fastnet Rock,
Davids yacht Rambler 100 capsized in
high seas after the keel broke off with a
sickening sound, sweeping the former
United Technologies chairman into the
Irish Sea. There was no time to react,
said crew member Mick Harvey. The boat
turned turtle, just like a dinghy would.
Most of the crew climbed onto the
upturned hull, but David and his part-
ner Wendy Touton were among the five
sailors who were swept away out of
reach, linking arms in the water for
two-and-a-half hours before being res-
cued by Irish coastguards.
Meanwhile, ICAP Leopard, the 100-
foot yacht owned by Helical Bar chief
executive Mike Slade, arrived safely in
Plymouth harbour in the early hours of
yesterday morning although the 2007
record set by Slade was demolished by
the Volvo Open 70 Abu Dhabi.
Not a great result for the City then The
Capitalist hears Slade is even considering
declaring this years Fastnet Race his last,
Rarden, vice president and head of exe-
cution sales at State Street, who regular-
ly uses his banking expertise to advise
the City of London Polices economic
crime team.
But last week, Rarden was in uniform
to support the police as the riots gath-
ered momentum, working from 2pm to
2am last Tuesday night as a duty ser-
geant, returning to the US bank on
Wednesday, and then putting in a 6pm
to 2am police shift that evening.
Rarden was one of 37 City workers who
volunteered as a special last week, putting
in more than 500 hours of duty between
them. Other part-time police included
Andy Rowe of Prudential, Darren
Sevket of Barclays Capital, Rosie
Phipson of PwC and Chris
Smith of trading technol-
ogy firm Formicary
Collaboration, who
was given time
off by his chief
operating officer
Howard Travers to
allow him to work every shift.
ahead of a planned major refit for ICAP
Leopard over the winter that will trans-
form her into a luxury superyacht.
Perhaps he can invite George David on
board for a well-deserved holiday
BERCOWS NEW HOME
HOME from home for Richard Desmond,
who showed up to the launch of Big
Brother as the reality show moves to
Channel 5 for the first time.
Youve done us proud, declared
Endemol chief executive Tim Hincks as he
took in the new BB house, where no
expense has been spared to make sure it
looks glorious in HD broadcast.
In fact, the house is so comfortable that
some guests said they wouldnt mind
moving in for a spell themselves. Surely
its good enough for Speakers wife Sally
Bercow then (right), rumoured to be tak-
ing part in the Celebrity Big Brother for-
mat that airs tomorrow it even contains
a gym, for goodness sake.
We wont confirm the celebrities until
the show starts, said The Capitalists man
in the Diary Room, although he suggested
the speculation is pretty accurate. So
thats a yes, then. Sally Bercow on the
treadmill this one could run and run
SPECIAL FORCES
BANKER by day; special constable by
night. Such is the life of Patrick
Turning point: ICAP Leopard on its final Fastnet Race, ahead of its refit to a luxury superyacht
There was
no time to
react. said
one sailor
aboard the
capsized
Rambler 100.
The boat
turned turtle
Spacious: Channel 5s new Big Brother house
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
CITYA.M. 17 AUGUST 2011
RAIL commuters will face inflation-
busting hikes in ticket prices next year,
which could see some fares rise by as
much as 13 per cent, following the
release of latest inflation figures yes-
terday.
Under the revised scheme, which
was set out in the Treasurys spending
review last October, regulated fares
such as season tickets will rise by
three per cent on top of Julys
retail price index (RPI) infla-
tion rate of five per cent over
the next three years.
The formula for fare
increases was previously
restricted to the RPI figure plus
just one per cent.
Transport Secretary
Philip Hammond (pic-
tured right) said he
recognised that the
decision had not been
popular, but was nec-
essary to help the gov-
ernment fund rail
improvements.
He said the money
raised would go
towards funding
2,700 new rail carriages and Londons
Crossrail and Thameslink projects.
Due to the scale of the deficit,
these investments would simply have
not been possible without the difficult
decision we have made to increase rail
fares, he said.
Train companies will also be
allowed to increase fares on certain
routes by five per cent as long as the
average increase across the operator
does not exceed RPI plus three per
cent. This means that some com-
muters may be forced to pay an extra
13 per cent for their journey.
Shadow transport secretary
Maria Eagle criticised the move
saying the government is total-
ly out of touch with the cost of
living crisis facing commuters.
David Mapp, commer-
cial director at the
Association of Train
O p e r a t i n g
Companies said:
Increasing the
money raised
from fares will
mean that taxpay-
ers contribute
less to the run-
ning of the rail-
ways.
QANTAS Airways is setting up two
new airlines in Asia and ordering
$9bn (5.5bn) of new Airbus aircraft
as part of a do-or-die makeover to sal-
vage its loss-mak-
ing international
business.
Qantas will
also cut
1 , 0 0 0
j o b s
f r om
Australia as it shifts its focus to the
worlds fastest-growing aviation mar-
ket, triggering threats by unions to
block the move and a government
pledge to scrutinise the plans.
Qantas, which has been reviewing
its offshore operations to cut costs
and unprofitable routes, said it will
launch a new, premium Asian airline
and a Japanese budget carrier, the lat-
ter jointly with Japan Airlines and
Mitsubishi Corp.
The new airlines will fly Airbus
A320 jets; as Qantas rebases its loss-
making international operations in
Asia, it also plans to give up some of
its long-haul routes and retire older
planes.
JOHN Menzies saw profits from its
aviation division overtake the media
distribution business for the first
time, as newspaper and magazine vol-
umes continued to decline in the first
half of the year.
A return of cargo-handling vol-
umes to pre-recession levels and
scores of new contracts for ground
services helped drive turnover at the
global aviation arm by more than 10
per cent, the company said yesterday.
Overall pre-tax profits rose to
21.4m from 20.6m over the same
period the previous year on revenues
that rose to 941.9m from 924m.
But a five per cent drop in maga-
zine sales (and a decline in newspaper
sales) in the groups distribution divi-
sion meant group sales were just two
per cent higher in the six months to
the end of June.
We will continue to expand
Menzies Aviation by leveraging exist-
ing customer relationships to win
more contracts, the company said.
John Menzies media firm
dips as aviation takes off
TECHNOLOGY

THE Competition Commission (CC)

has cleared a merger between strug-
gling Thomas Cooks UK retail busi-
ness and those of the Co-operative
group and Midlands Co-operative
Society, to create Britains biggest
retail travel operation.
The deal will bring together three
of the biggest travel agents on the
British high street.
Thomas Cook currently has 780
stores, while the Co-op has 360 travel
shops and the Midlands 100.
The CC has concluded that the
acquisition will not result in a sub-
stantial lessening of competition in
any markets in the UK, in particular
for customers buying package holi-
days from high street travel agents,
the Commission said.
Thomas Cook has issued three prof-
it warnings in the past year, trigger-
ing the resignation of chief executive
Manny Fontenla-Novoa.
The relatively strong performance
of arch rival TUI has also piled on the
pressure. The Co-op deal has been
questioned by some analysts as the
expansion comes at a time when dis-
posable income has been squeezed.
Thomas Cook plans to conduct its
tour operator business separately
from the joint venture. The takeover
was given the provisional go ahead
last month.
Thomas Cook gets Co-op OK
BY JOHN DUNNE
LEISURE

Train ticket
prices to rise
by up to 13pc
BY KASMIRA JEFFORD
TRANSPORT

BY HARRY BANKS
AVIATION

News
13 CITYA.M. 17 AUGUST 2011
I doubt the rise in fares will make any difference to
the way I travel. Its a take it or leave it situation for
those who work in London. Travelling by rail is
almost unavoidable and one of the more
efficient ways of getting round. We are
left with very little choice but to accept.
MICHAEL MBAH | AMLIN
The rise in rail fares wont have any effect on the
way I travel because I live in London. Ill have to
continue to use the tube to get to work regardless
of what they do because, realistically, I have no
other option. I rarely leave the city, so I dont
often use trains.
TONY NUTKINS | COUTTS
Although my office is in the City, my work tends to take me overseas a lot, so I doubt I will be impacted as much as most
commuters. I would expect that people will consider working from home more often. The fare rise is frustrating as the extra
money should be used for more frequent and reliable trains as opposed to upgrades that we wont see for years.
RICHARD LAWREY | AON HEWITT
* These views are those of the individuals above and not necessarily those of their company.
ANALYSIS l Thomas Cook
p
Jun Jul Aug
550
650
500
450
52.25
16 Aug
NEWS | IN BRIEF
HTC sues Apple over patents
Smartphone maker HTC Corp is suing
Apple, seeking to halt US imports and
sales of Macintosh computers, iPads,
iPods, iPhones and other devices
because of alleged patent infringements.
HTC said it filed complaints with the US
International Trade Commission and the
US District Court in Delaware. The latter
alleged infringements of three patents
obtained in 2008 and 2010, and which
relate to Wi-Fi capability. It is seeking
compensatory damages.
Goldman loses top Europe exec
Goldman Sachs EMEA chief operating
officer Glenn Earle is to retire after serv-
ing 25 years at the investment bank, it
was revealed yesterday. Earle has
agreed to remain as an advisory director
until the end of the year. The Harvard
MBA graduate joined Goldman in 1987,
before becoming partner in 1996 and
taking the COO role in 2006. Robin
Vince is believed to be replacing Earle as
chief operating officer.
OFT probes concrete industry
Competition watchdog the Office of Fair
Trading (OFT) has warned the UK aggre-
gates, cement and ready-mix concrete
markets to prepare for a prolonged
investigation, after an initial study raised
concerns about the conduct of major
firms towards smaller operators. It has
emerged that the sector, a 3.4bn a year
industry, is set for a referral to the
Competition Commission.
Qantas orders $9bn of new plans as it
sets up two new airlines in Asia move
ANALYSIS l Qantas
AUD
10Aug 11 Aug 12Aug 15Aug 16Aug
1.66
1.64
1.62
1.60
1.58
1.56
1.54
1.52
1.52
16 Aug
CITY VIEWS: WILL THE RISE IN RAIL FARES AFFECT THE WAY YOU TRAVEL?
Interviews by Eshe Nelson and Kasmira Jefford
HOW HIGH COULD RAIL FARES GO?
Under new rules laid out by the Treasury in
October, regulated fares, including season
tickets and off-peak journeys, will increase by
three per cent on top of Julys Retail Price
Index rate of five per cent for the next three
years. Train companies are also allowed to
vary fares on individual routes by an extra
five per cent, provided that the total fares
across the operator balance out at the eight
per cent average. This means some routes
may see price hikes of 13 per cent.
HOW THE CHANGES
WILL AFFECT YOUR FARE
RESOLUTION, the life insurance con-
solidator, yesterday said it had
returned almost 100m of cash to
shareholders and was on track to
redistribute a further 400m in the
next year after a successful first half.
Resolution said it made an underly-
ing 189m profit in the first half, up
from 151m in the first half of 2010,
and also released a net 201m from its
capital reserves, boosting total profits
to 390m.
The group said it had hived off a
portfolio of legacy closed-end prod-
ucts into a new unit called Heritage
headed by Resolutions chief commer-
cial officer Evelyn Bourke.
The portfolio policies are no longer
sold to new customers but highly cash
generative and will be run off over
time, while the remaining new busi-
ness group, which sells retirement
income, employee pensions and pro-
tection products to new customers,
will continue under the Friends Life
brand.
Berenberg Bank analyst Trevor
Moss said the move could be a first
step towards a sale of the heritage
portfolio while leaving the new busi-
ness book as a quoted entity. The first
step is to demonstrate the cash flow
that runs off the back book, he said.
The value of new business through
Resolutions Friends Life platform fell
to 66m from 81m in the first half of
the year as demand in the UK fell, but
it said profitability was expected to
improve as synergies are delivered.
Resolution said it delivered 100m
of capital synergies so far towards its
235m target for 2011 and created
283m of distributable cash, leaving it
likely to beat its full-year target of
400m.
Resolution, which combined life
assets from Friends Provident, Axa UK
and Bupa, is on track to return 250m
to shareholders this year and 250m
next year through share buybacks.
DUTCH insurance group Aegon sold
its closed life insurance and pensions
business Guardian Life to European
buyout firm Cinven for 275m yester-
day in a widely-trailed move.
Cinven will acquire Guardians
7.4bn assets and run off the portfo-
lio of existing policies.
The Guardian sale is the latest dis-
posal of non-core assets by Aegon as
recovers from its 3bn (2.6bn) Dutch
state bailout in 2008.
Consistent with actions over the
past three years to dispose of, or run
off, certain businesses deemed non-
core, Aegon has concluded that man-
aging the closed business of Guardian
companies no longer fits with our
strategic objectives, said Jan
Nooitgedagt, Aegons chief financial
officer in a statement.
Guardian manages more than
300,000 UK life insurance policies but
has been closed to new business for a
decade. It generated 23m in underly-
ing pre-tax earnings in 2010, and had
embedded value of 322m and book
value of 271m in June.
The sale is believed to be Cinvens
first step into the closed life insur-
ance market, which is dominated by
companies such as Swiss Re, Phoenix
Life and Resolution. Cinven may fol-
low their lead by buying up and con-
solidating closed portfolios to run off.
Aegon recently completed the sale of
its Transamerica Reinsurance opera-
tions to Scor for about $900m. It
repaid its bailout in full in June.
Aegon sells 7.4bn life insurance and
pensions book to Cinven for 275m
PRIVATE equity analysts expect to see
a wave of large investment banks
reshaping their in-house private equi-
ty businesses as a result of new regu-
lation restricting their investment
activities.
Investment banks are increasingly
spinning out all or parts of their cap-
tive private equity arms, research
group Preqin said, in response to new
regulation such as the Volcker Rule in
the US. Deals include Bank of
America Merrill Lynchs decision to
hive off its $6bn (3.7bn) North Cove
Partners firm in June.
In the near future we expect there
to be increased spin-out activity as
banks re-organise to comply with reg-
ulatory requirements, said Preqin
research analyst Adam Counihan.
Some banks have opted for a more
fragmented approach, he added,
such as spinning off units with a
specic geographic or industry focus
or investment style, such as foreign
private equity operations.
Banks set to create spin
offs when regulations hit
PRIVATE EQUITY

JP MORGANs private equity division

bought a portfolio of mid-market
investment assets from the suspend-
ed Arch Cru funds for $91.9m
(56.5m) yesterday.
The package of 38 mid-market co-
invested companies are being bought
from three of the fund cells now run
by Spearpoint, the fund manager
appointed to take charge of the funds
after their suspension in 2009.
The portfolio is primarily invested
in UK, Germany and France-based
companies. The deal is to be paid for
entirely in JP Morgan shares.
Many of the funds are still in their
investment period, with an average
age of 3.6 years, and unfunded com-
mitments are estimated to be 6.9m,
said Numis analyst Charles Cade.
The deal is expected to speed up
the return of Arch Cru cash to
approximately 20,000 shareholders,
who were locked into losses when the
funds were suspended due to more
withdrawals than they could meet.
JP Morgan private equity
buys up 56.5m portfolio
PRIVATE EQUITY

TIME OUT owner Oakley Capital

saw its funds grow by 16m in the
first half of the year as the value of
its investments were revised
upwards, it said yesterday.
Oakley, which acquired a control-
ling stake in Time Out America for
a total $18.2m (11.1m) in May, said
its net asset value per share rose 23
per cent to 1.80 in the first half of
the year, at the top end of its previ-
ously announced range.
Its funds under management rose
to 230.9m in the period, largely
due to a 14.5m appreciation in the
value of its investments in German
price comparison site Verivox and
data service provider Daisy Group.
It also invested 23.1m in Emesa,
a Dutch leisure e-commerce busi-
ness, in the first half of the finan-
cial year.
Oakley has combined the US
Time Out operation with the inter-
national business it bought in
November 2010 to reunite the com-
pany as a global media group.
Chairman James Keyes said more
growth in Oakleys net asset value
was expected as its portfolio compa-
nies underlying trading perform-
ance continued to improve.
I am pleased to report another
period of steady progress, he said
in a statement, adding that the
companys new
i nvestments
in Emesa and
Time Out
were capa-
ble of gen-
e r a t i n g
s t r o n g
ret ur ns
over the
coming
years.
Oakleys investments pay off
BY ALISON LOCK
PRIVATE EQUITY

Profits and
dividend rise
at Resolution
BY ALISON LOCK
INSURANCE

BY ALISON LOCK
INSURANCE

News
14 CITYA.M. 17 AUGUST 2011
Resolution founder Clive Cowdery has overseen strong progress Picture: REX
US NEWS | IN BRIEF
US housing starts edge down
US housing starts fell less than expected
in July as builders broke ground on new
multifamily units likely to meet demand
for rental apartments, while permits for
future construction dropped, a govern-
ment report showed yesterday. Housing
starts were down 1.5 per cent to
604,000 in July from a downwardly
revised 613,000 in June. Meanwhile,
import prices in the US were up 0.3 per
cent largely due to fuel costs.
American industry spikes in July
US industrial output recorded its best
gain in seven months in July as the auto
sector bounced back from supply disrup-
tions wrought by Japans devastating
earthquake in March. Industrial output
increased 0.9 per cent, the Federal
Reserve said yesterday, after a 0.4 per
cent gain in June nearly double econo-
mists' expectations for a 0.5 per cent rise.
Republican hopefuls attack Fed
GOP candidates for the presidential race
lined up to attack the Federal Reserve
yesterday, as the race prompted some
fiery rhetoric. Right-wing Texan gover-
nor Rick Perry said it would be treaso-
nous if Fed chairman Ben Bernanke
announced more quantitative easing,
also adding: We would treat him pretty
ugly down in Texas. Rival Michele
Bachmann was more measured in her
comments, saying she has written to the
Fed to oppose more monetary easing.
Fitch confirms US is gold-plated
Fitch Ratings said on yesterday that it
affirmed the USs top-notch credit rating
at AAA, giving the world's largest econ-
omy a reprieve after it was downgraded
by Standard & Poor's little more than a
week ago. Fitch said the outlook for the
rating was stable. However, it said the
US government had to show tangible
results in its efforts to reduce the budg-
et deficit.
ANALYSIS l Resolution
p
Jun Jul Aug
280
300
260
240
267.90
16 Aug
ANALYST VIEWS: HOW IS RESOLUTIONS
STRUCTURAL OVERHAUL GOING? Interviews by Alison Lock

MARCUS BARNARD | ORIEL SECURITIES

These results look fine and the decision to separate the heritage book
will focus managements responsibilities in the right areas. One highlight was the
dividend, as Resolution said it would pay the same amount of dividend following
the buyback across the lower number of shares in issue.

TREVOR MOSS | BERENBERG BANK

This business is undergoing extensive surgery and there are a lot of
moving parts. There are a lot of costs still to come in before you will see the full
benefits, but they seem to have made a lot of strategic progress. Underlying profit
was about 170m once a 222m reserve release was taken into account.

JONATHAN JACKSON | KILLIK & CO

Todays announcement is reassuring and demonstrates Resolutions abil-
ity to improve operational performance and release cash from the UK life industry.
Though it alluded to the recent volatility in investment markets, the group is one
of the more defensive players in the sector.

STATOIL, the Norwegian state-con-

trolled oil and gas company,
announced yesterday that two previ-
ous North Sea oil discoveries are con-
nected and together may represent
the biggest find in Norways part of
the continental shelf in 30 years.
Statoil said the Aldous Major South
discovery in the North Sea, may hold
twice as much oil and equivalents as
previously announced last week, with
the field now estimated to contain
between 400 to 800m barrels of oil
equivalent (boe).
The company also confirmed that
Aldous is attached to another discov-
ery, Avaldsnes, and the combined
prospect is estimated to hold between
500m and 1.2bn boe, up to three
times more than first thought.
The discovery marks the third time
this year that the energy firm has
made a high impact discovery
250m barrels of oil equivalent this
year, following a find in the Arctic
and the Peregrino South discovery off
the coast of Brazil.
The latest find will help Statoil
achieve its goal of hiking its annual
production by a third by 2020 to 2.5m
barrels of oil equivalent per day
(boed), Tim Dodson, Statoils vice pres-
ident of exploration, but would not
change its production estimates for
the next few years.
Statoil has struggled with declin-
ing oil production in recent years and
has often revised downwards its
future production estimates. Last year
it produced 1.89m boed, down from
1.96m in 2009.
The company also said yesterday
that it will invest just under 15bn
crowns (1.68bn) in building the
worlds first gas compressor on the
seabed at its Aasgard platform in the
Norwegian Sea, which will boost vol-
umes.
Statoil shares climbed 2.77 per cent
to close at 126.10 Norwegian kroner.
A 3bn listing plan by the operator of
Chinas new Beijing-Shanghai bullet
train, initially targeted for next year,
will be further delayed following last
months deadly train crash, sources
said yesterday.
The delay is the latest blow to the
nations scandal-plagued rail system
after China CNR Corp announced last
week it would recall 54 bullet trains
used on the showcase Beijing-
Shanghai line. Services would be cut
by 25 per cent.
State-controlled Beijing-Shanghai
High-Speed Railway had hoped for an
initial public offering (IPO) in Hong
Kong and Shanghai as early as in
2012, but any listing is now unlikely
in the immediate future.
The 23 July accident, in which 40
people were killed, had further
complicated the prospects of
receiving regulatory
approvals as well as a
planned restructuring
ahead of the IPO, a source with direct
knowledge of the issue said.
China is not in a hurry to float
something, especially after this
tragedy, said the
source.
Chinese bullet train operator to delay
$5bn dual listing after crash in July
BRITISH social housing and home
care provider Mears reported a seven
per cent rise in first-half pre-tax profit
and said it was well-placed to expand
in its core markets.
Mears, which services hundreds of
thousands of local authority and
housing association homes and has a
rapidly growing care-in-the-home
business, made a pre-tax profit of
14.1m in the first six months of 2011
on revenues up 16 per cent to
292.6m. Its record interim results
included an order book of 2.7bn.
Mears said that in its social hous-
ing division its pipeline stood at over
3bn, with 1.7bn of new contract
opportunities available in the next 12
months.
The firm, which has won over
300m worth of new contracts since
March, said it had 97 per cent rev-
enue visibility for the current year
and was nearing 85 per cent for 2012.
Shares in Mears closed 6.3 per cent
up yesterday at 276.75p.
Mears mulls expansion
after a record first half
SUPPORT SERVICES

ROYAL Dutch Shell said oil continued

to escape into the North Sea after it
discovered a second leak from its
Gannet Alpha platform, in what has
been the largest spill there in a
decade.
The Anglo-Dutch company con-
firmed that whilst the main leak in
the flow line was stopped on
Thursday last week, it was still over-
coming technical challenges to find
the exact source of a second smaller
leak from the same pipe.
We believe that the small leakage
is coming from a relief valve adjacent
to the main leak and from the same
source, said Glen Cayley, technical
director of Shells exploration and
production activities in Europe.
Once weve confirmed this, we
will develop a series of mitigation
options to stop this remaining leak.
More than 200 tonnes or 1,300 bar-
rels of oil have escaped since the first
leak was discovered six days ago.
Shell said it has managed to reduce
the rate of leakage from the flowline
to less than one barrel a day.
Shell closed down 10p at 2,005.5p.
Shell says Gannet Alpha
oil rig has a second leak
ENERGY

WATER and waste company Pennon

said it expects higher full-year profits
at its waste management unit,
Viridor, on the back of strong trading.
Waste management, recycling and
renewable energy company Viridor
accounts for a third of group profits
and Pennon had said in May the unit
would boost growth, as projects to
generate energy from waste gain
acceptance in the UK.
The company said yesterday it had
decided to proceed with the financ-
ing, construction and operation of a
350,000 tonne energy from waste
plant in Cardiff.
Pennon, which also owns South
West Water, added trading for the
whole group since 31 March had been
in line with its expectations.
South West Water has a solid plat-
form in place for continued success
during the current regulatory peri-
od, the company said, adding that
water restrictions in the region were
highly unlikely despite the dry
spring.
In May, Pennon said it expects
Viridor to continue boosting profits,
as UK projects to generate energy
from waste start to gain acceptance.
Over the past year, the company
has got planning permission for four
energy from waste facilities previous-
ly stuck in planning.
Pennons Viridor is doing well
BY HARRY BANKS
SUPPORT SERVICES

Statoil makes
giant North
Sea discovery
BY KASMIRA JEFFORD
ENERGY

BY HARRY BANKS
TRANSPORT

Shell has not been able to fully stop the leak from its Gannet Alpha platform
NEWS | IN BRIEF
Heritage Oil boosts Russian output
Production has more than trebled at one
of Heritage Oils Russian fields, as results
from drilling and testing one well
exceeded expectations. The oil and gas
company announced that production at
the Zapadno Chumpasskoye Field
increased from 431 barrels of oil per day
(bopd) to the current level of 1,600
bopd. Well 363 is now producing at a
controlled rate of 1,205 bopd, and pro-
duced up rates of up to 1,405 bopd dur-
ing the flow test. The firm said that the
wells potential is estimated to be 2,365
bopd.
Witan Investment ups NAV return
Witan Investment Trust, which hit a 52-
week low earlier this month, said its per-
formance outstripped its benchmark in
the first half of 2011. The companys net
asset value (NAV) total return rose by
3.6 per cent. The investment trust said
that eight of its 12 external fund man-
agers in place at the end of 2010 beat
their respective benchmarks during the
period. Those which underperformed for
the half year saw improved performance
in the second quarter.
CRH to miss earnings forecasts
Irish building materials group CRH said
yesterday it would miss analysts expec-
tations for earnings growth of 11 per
cent this year as it grapples with high
raw materials costs and poor economic
growth prospects. A major player in the
US market, where it is the leading pro-
ducer of asphalt for highway construc-
tion, CRHs first-half earnings before
interest, taxes, depreciation and amorti-
zation rose 10 per cent to 574m
(504m). That was below the average
590m forecast by seven analysts.
CRH's chief operating officer Albert
Manifold said that although the group
looked forward to a year of earnings
progress, analysts had been expecting
too much.
News
15 CITYA.M. 17 AUGUST 2011
BRITISH recruitment and IT outsourc-
ing services firm Harvey Nash Group
said it expected a 40 per cent rise in
first-half pre-tax profit on strong
growth in placements, particularly in
Europe, Germany and the Nordics.
The company also said it planned
to raise its interim dividend by 10 per
cent.
A strong financial position, com-
bined with the broad portfolio of
services, has positioned the group
well for the second half and there-
after, the company said.For the six
months ended 31 July, the group
expects to report an increase of about
20 per cent in revenue and profit.
Harvey Nash said it made good
progress in the US particularly in per-
manent recruitment.
Earlier in the month, rival Robert
Walters posted a 23 per cent rise in
first-half net fees, helped by strong
growth in its European and Asia
Pacific markets. But peers including
Michael Page have warned that the
UK market remains rough.
Shares in the company closed up
6.5 per cent at 73.5p.
Harvey Nash upbeat
BY HARRY BANKS
RECRUITMENT

ANALYSIS l Pennon
p
Jun Jul Aug
700
550
600
650
500
400
450
655.00
16 Aug
ANALYSIS l Statoil
NOK
Jun Jul Aug
140
130
110
120
126.10
16 Aug
News
16 CITYA.M. 17 AUGUST 2011
MGM Advantage
The retirement income specialist has
appointed Simon Whitehead to the
executive team and board as chief
financial officer, effective from 1
September. Whitehead joins from the
specialist pensions consultancy
4Change, where he was senior partner.
Novo Altum
Tim Kerr has joined the management
consultant as finance transformation
practice leader. He joins from
Accenture, where he was a partner in
the finance and performance manage-
ment practice.
Berwin Leighton Paisner
Richard Davies will join the law firms
Abu Dhabi-based Middle East and
North Africa team. Davies, previously
at Linklaters, has spent the last three
years in Dubai working on building
and engineering projects in the MENA
region.
State Street Global Advisors
The investment management arm of
State Street Corporation has appoint-
ed Susan Raynes as head of its UK,
Middle East and Africa institutional
business. Raynes, who will relocate to
London this month, was previously
senior managing director, head of
SSGAs San Francisco office.
We R Interactive
The social games publisher has appoint-
ed Christian Purslow, former managing
director of Liverpool FC, to the newly
created role of non-executive independ-
ent director. Purslows appointment fol-
lows his investment in the company,
which is also backed by investors
including Eric Fellner, co-founder of
Working Title Films; Elio Leoni-Sceti,
former chief executive of EMI Music;
and Peter Mead, founder of Abbott
Mead Vickers BBDO.
Insparo Asset Management
Andrew Dwiar has been promoted to
middle office analyst to manage the
operations around Insparos funds. Prior
to joining the firm earlier this year,
Andrew worked with the global credit
team at Thames River Capital.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
Octopus
The investment business has appointed George
Whitehead as venture partner manager to devel-
op the Octopus Venture Partner Group. George
joins from Nesta Investments, where he was
business development director and supported
programmes targeted at growth businesses.
These ranged from investments in company
accelerators like Springboard, Seedcamp and
Design London to supporting networks such as
the British Business Angels Association.
+44 (0)20 7557 7245
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
Wall Street breaks
its winning streak
U
S stocks fell yesterday after
three days of gains when a
meeting between the heads of
France and Germany failed to
quell fears about the ability of the
Eurozone leaders to contain the
regions sovereign debt woes.
Efforts to stem the spreading
European debt crisis have so far been
ineffective, partially causing the equi-
ty market to decline in recent weeks.
Stocks were unable to rally yesterday
despite positive US earnings and the
decision by Fitch Rating to keep the
countrys AAA credit rating less than
two weeks after Standard & Poor's
downgraded the US to AA-plus.
Shares of financials, seen as vulner-
able to a European fiscal crisis, added
to their decline and were the worst
performing sector in the S&P 500. The
S&P financial index was down 1.9 per
cent.
Merkel and Sarkozy said they
would propose a tax on financial
transactions, which hurt shares of
exchange operators. Shares of NYSE
Euronext fell 8.4 per cent to $26.54,
making it the worst performer in the
S&P 500.
We have France out with no
growth yesterday and Germany out
with no growth today. It broadens a
picture that global economies have
experienced a simultaneous pause,
said Fred Dickson, chief market
strategist at DA Davidson & Co.
Shares of retailers Wal-Mart Stores
and Home Depot both rose after the
industry bellwethers exceeded ana-
lysts expectations for quarterly num-
bers. Wal-Mart shares advanced 3.9
per cent to $51.92 after the company
said US same-store sales turned posi-
tive in July. Home Depot shares
gained 5.2 per cent to $33.12 after the
company raised its fiscal-year profit
forecast for the second time in three
months.
Dells shares dropped 4.9 per cent
in after-hours trading after the com-
pany reported revenue slightly below
analysts expectations and said sales
in the present quarter would be flat.
The Dow Jones industrial average
dropped 76.97 points, or 0.67 per
cent, to 11,405.93. The Standard &
Poor's 500 Index declined 11.73
points, or 0.97 per cent, to 1,192.76.
The Nasdaq Composite Index fell
31.75 points, or 1.24 per cent, at
2,523.45.
About 8.2bn shares were traded on
the NYSE, the American Stock
Exchange and Nasdaq, roughly in line
with last years daily average of
8.47bn. About three stocks fell for
every advancer on the NYSE and
about four shares declined for every
advancing stock on the Nasdaq.
B
RITAINS top shares ended a
shade higher yesterday, notably
banks, after a better than fore-
cast report on industrial output
in the United States and as Fitch con-
firmed that nations top credit rating
with a stable outlook.
The UK benchmark index ended up
7.05 points, or 0.1 per cent, at
5,357.63, having spent much of the
day in the red, dipping as low as
5,265.83, on weak German GDP data.
Volumes were thin, however, at
78.2 per cent of the 90-day average,
exaggerating the indexs moves.
Banks , pressured earlier in the day,
found support after the Fitch
announcement, giving the worlds
largest economy a reprieve after it
was downgraded by Standard &
Poors little more than a week ago.
Strength from integrated oil stocks
also helped prop up the index, with
the sector staging something of a
recovery as the buoyant US data
pulled oil prices off earlier lows.
US industrial output rose in July at
its fastest pace in seven months as
strong auto production boosted man-
ufacturing, and as Americans turned
up the air conditioning to combat hot
weather.
BG Group firmed 1.9 per cent, but
Royal Dutch Shell and BP slipped 0.5
per cent and 0.1 per cent, respectively.
Trading was choppy heading into
the close as investors keenly awaited
news out of the meeting between
French President Nicolas Sarkozy and
German Chancellor Angela Merkel.
The data showing German gross
domestic product growth slowed by
more than expected in the second
quarter brought the Eurozone debt
situation sharply into focus, with
traders saying it raised doubts about
the ability of the country to help out
the weaker economies.
On one side youve got the indebt-
ed European countries, but actually
there were real hopes that core
Europe would continue to grow
strongly and that of course at least
gave them some breathing space to
try and solve some of the (regions)
problems, Henk Potts, market strate-
gist at Barclays Wealth, said.
I guess this calls into question
whether core Europe can really grow
in isolation from the problems that
are being experienced by its major
trading partners around it.
Sentiment was further soured by a
subsequent reading of Eurozone GDP,
which showed the regions economy
grew less than forecast in the second
quarter.
Gold miner Randgold Resources
grabbed the top spot on the FTSE 100
leader board, as uncertainty ahead of
the Merkel/Sarkozy meeting boosted
the gold price.
Old Mutual gained 2.5 per cent as
JPMorgan Cazenove upgraded its rat-
ing for the South Africa-focused
insurer and fund manager to over-
weight from neutral following
recent first-half results.
Upbeat broker sentiment also gave
British American Tobacco a lift, up 2
per cent, after Nomura increased its
earnings per share estimate and price
target for the cigarette manufacturer.
ARM Holdings, meanwhile, firmed
1 per cent, with traders citing
strength in global technology stocks
and a change in the mobile landscape
following Googles takeover of hand-
set maker Motorola Mobility
announced on Monday.
Broker Merchant Securities said
the $12.5bn takeover by Google raised
the opportunity for faster product
innovation from rivals that would
continue to drive the adoption of
smart-phones and cellular connected
tablet personal computers.
Upbeat US outlook lifts FTSE
but Eurozone worries linger
THELONDON
REPORT
THENEW YORK
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Aviva PLC
425
400
375
350
325
Jun Jul Aug
p 352.50
16 Aug
AVIVA
Citi rates the insurance group hold with a target price of 415p, lowered
from 440p. The broker has updated its forecast due to the effects of dilution
from asset sales, which could impede medium term earnings growth. Avivas
results showed strong progress in life earnings, while non-life earnings were
affected by lower investment results that partially offset better underwriting
profits.
BALFOUR BEATTY
JP Morgan rates the infrastructure company overweight with a target
price of 426p. Despite Balfour Beattys shares declining 23 per cent since
reporting its full year results in March and the increasing uncertainty over US
infrastructure spending, the broker thinks that the price-to-earnings trading
discount to UK peers has been over exaggerated and their potential earnings
impact is higher than the current share price suggests.
G4S
UBS rates the security company buy with a target price of 330p. The bro-
ker expects positive half-year results when the firm reports on 23 August,
partially due to its high expectations of G4Ss emerging markets organic
growth. While the firm has been more resilient in the face of wage pressures
in Europe than peers including Securitas, its margins have suffered a drag
from higher taxes and slower cost savings.
ANALYSIS l FTSE
16May 24Jun 6Jun 14Jul 3Aug
6,200
5,800
5,400
5,000
5,357.63
16 Aug
ANALYSIS l Balfour Beatty PLC
320
300
280
260
Jun Jul Aug
p
260.50
16 Aug
ANALYSIS l G4S PLC
290
280
270
260
250
230
240
Jun Jul Aug
p
255.20
16 Aug
LON GD ONCE FIX AM...........1779.00 41.00
SILVER LDN FIX AM ..................39.87 0.46
MAPLE LEAF 1 OZ ....................64.50 0.00
LON PLATINUM AM................1813.00 20.00
LON PALLADIUM AM...............746.00 -7.00
ALUMINIUM CASH .................2345.00 -33.00
COPPER CASH ......................8823.00 -27.50
LEAD CASH...........................2353.00 -33.00
NICKEL CASH......................21375.00 -400.00
TIN CASH.............................24595.00 150.00
ZINC CASH ............................2151.00 -8.50
BRENT SPOT INDEX................108.77 0.51
SOYA .....................................1343.50 15.75
COCOA..................................2902.00 23.00
COFFEE...................................245.70 5.35
KRUG.....................................1847.00 43.70
WHEAT ....................................164.62 -0.30
AIR LIQUIDE........................................87.68 0.00 100.65 80.00
ALLIANZ..............................................76.37 -0.72 108.85 67.82
ALSTOM ..............................................32.37 -0.33 45.32 29.24
ANHEUS-BUSCH INBEV ....................38.94 0.79 46.33 33.85
ARCELORMITTAL...............................15.63 -0.68 28.55 14.60
AXA......................................................11.22 -0.02 16.16 9.27
BANCO SANTANDER...........................6.51 0.05 9.80 5.54
BASF SE..............................................53.98 -0.34 70.22 40.74
BAYER.................................................46.24 0.01 59.44 41.33
BBVA......................................................6.50 -0.01 10.21 5.52
BMW ....................................................58.87 -0.44 73.85 40.16
BNP PARIBAS.....................................37.50 -0.03 59.93 32.93
CARREFOUR ......................................19.66 -0.01 36.06 16.68
CREDIT AGRICOLE..............................6.78 0.05 12.92 5.63
CRH PLC .............................................12.30 0.14 17.40 10.87
DAIMLER.............................................38.07 -0.35 59.09 35.28
DANONE..............................................47.95 0.93 53.16 41.00
DEU.BOERSE OFFRE ........................43.25 -0.28 55.75 39.92
DEUTSCHE BANK..............................30.75 -0.23 49.18 27.29
DEUTSCHE TELEKOM.........................9.58 0.05 11.38 8.80
E.ON.....................................................15.23 -0.03 25.54 13.19
ENEL......................................................3.51 -0.12 4.86 3.27
ENI .......................................................12.92 -0.19 18.66 11.83
FRANCE TELECOM............................13.16 -0.07 17.45 11.97
GDF SUEZ ...........................................20.44 -0.46 30.05 18.32
GENERALI ASS...................................11.86 0.07 17.05 10.34
IBERDROLA..........................................5.18 -0.05 6.50 4.66
ING GROEP CVA...................................6.16 -0.05 9.50 5.31
INTESA SANPAOLO.............................1.25 0.00 2.53 1.07
KON.PHILIPS ELECTR.......................14.55 -0.13 25.45 12.85
L'OREAL..............................................80.73 1.43 91.24 71.00
LVMH..................................................115.05 -0.30 132.65 89.12
MUNICH RE.........................................92.66 0.08 126.00 84.67
NOKIA....................................................4.30 0.21 8.49 3.33
REPSOL YPF.......................................19.18 -0.02 24.90 17.31
RWE.....................................................27.34 -0.76 55.88 24.53
SAINT-GOBAIN...................................34.76 -0.09 47.64 27.81
SANOFI ................................................48.54 0.09 56.82 42.85
SAP......................................................37.19 0.20 46.15 34.13
SCHNEIDER ELECTRIC.....................94.74 0.64 123.65 81.30
SIEMENS .............................................74.65 0.19 99.39 67.82
SOCIETE GENERALE.........................25.28 0.48 52.70 20.16
TELECOM ITALIA..................................0.84 -0.01 1.16 0.77
TELEFONICA ......................................14.42 -0.04 19.69 13.01
TOTAL..................................................33.35 -0.03 44.55 30.34
UNIBAIL-RODAMCO SE...................141.00 -2.90 162.95 124.50
UNICREDIT............................................1.06 0.01 2.05 0.90
UNILEVER CVA...................................23.05 0.24 24.08 20.68
VINCI ....................................................35.74 -0.40 45.48 32.08
VIVENDI ...............................................15.76 0.01 22.07 14.10
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5357.63 7.05 0.13
FTSE 250 INDEX . . . . . . . 10412.73 -119.07 -1.13
FTSE UK ALL SHARE . . . . 2780.31 -1.04 -0.04
FTSE AIMALL SH . . . . . . . . 771.85 -4.67 -0.60
DOWJONES INDUS 30 . . 11405.93 -76.97 -0.67
S&P 500. . . . . . . . . . . . . . . . 1192.76 -11.73 -0.97
NASDAQ COMPOSITE . . . 2523.45 -31.75 -1.24
FTSEUROFIRST 300 . . . . . . 969.16 -0.09 -0.01
NIKKEI 225 AVERAGE. . . . 9107.43 21.02 0.23
DAX 30 PERFORMANCE. . 5994.90 -27.34 -0.45
CAC 40 . . . . . . . . . . . . . . . . 3230.90 -8.16 -0.25
SHANGHAI SE INDEX . . . . 2608.17 -18.60 -0.71
HANG SENG. . . . . . . . . . . 20212.08 -48.02 -0.24
S&P/ASX 20 INDEX . . . . . . 2552.60 -30.80 -1.19
ASX ALL ORDINARIES . . . 4317.30 -29.50 -0.68
BOVESPA SAO PAOLO. . 54323.61 -328.22 -0.60
ISEQ OVERALL INDEX . . . 2537.46 -11.78 -0.46
STI . . . . . . . . . . . . . . . . . . . . 2832.73 -41.67 -1.45
IGBM. . . . . . . . . . . . . . . . . . . 878.66 -3.01 -0.34
SWISS MARKET INDEX. . . 5373.30 48.57 0.91
Price Chg %chg
3M........................................................82.13 -1.18 98.19 78.01
ABBOTT LABS ...................................50.07 0.16 54.24 45.07
ALCOA ................................................12.26 -0.30 18.47 9.92
ALTRIA GROUP..................................25.68 -0.02 28.13 22.15
AMAZON.COM..................................197.68 -5.27 227.45 122.46
AMERICAN EXPRESS........................44.89 -0.93 53.80 37.33
AMGEN INC.........................................51.27 -0.33 61.53 47.66
APPLE...............................................380.48 -2.93 404.50 236.78
AT&T....................................................28.79 -0.02 31.94 26.20
BANK OF AMERICA.............................7.40 -0.36 15.31 6.31
BERKSHIRE HATAW B.......................71.78 -0.76 87.65 66.51
BOEING CO.........................................62.23 -0.47 80.65 56.01
BRISTOL MYERS SQUI ......................28.39 0.22 29.73 20.05
CATERPILLAR....................................89.35 -2.02 116.55 63.34
CHEVRON...........................................98.14 -0.96 109.94 72.57
CISCO SYSTEMS................................16.00 -0.03 24.60 13.30
CITIGROUP.........................................29.94 -1.33 51.50 26.25
COCA-COLA.......................................68.17 -0.03 69.82 54.92
COLGATE PALMOLIVE......................86.22 -0.04 89.43 73.12
CONOCOPHILLIPS.............................66.54 -0.94 81.80 52.00
DU PONT(EI) DE NMR........................46.89 -0.83 57.00 38.71
EXXON MOBIL....................................73.50 -0.79 88.23 58.05
GENERAL ELECTRIC.........................16.15 -0.24 21.65 14.25
GOLDMAN SACHS GRP ..................116.90 -2.21 175.34 110.04
GOOGLE A........................................539.00 -18.23 642.96 448.00
HEWLETT PACKARD.........................32.61 0.18 49.39 29.75
HOME DEPOT.....................................33.12 1.66 39.38 27.10
IBM.....................................................171.24 -1.75 185.63 122.28
INTEL CORP .......................................20.79 -0.10 26.78 17.60
J.P.MORGAN CHASE.........................36.03 -0.85 48.36 33.69
JOHNSON & JOHNSON.....................64.36 -0.23 68.05 56.99
KRAFT FOODS A................................34.21 -0.47 36.30 24.30
MC DONALD'S CORP ........................86.67 -0.15 89.57 71.54
MERCK AND CO. NEW......................32.10 -0.03 37.68 29.47
MICROSOFT........................................25.35 -0.16 29.46 23.32
OCCID. PETROLEUM.........................87.37 -1.94 117.89 72.13
ORACLE CORP...................................27.57 -0.07 36.50 21.66
PEPSICO.............................................63.76 0.19 71.89 60.10
PFIZER ................................................18.31 -0.03 21.45 15.66
PHILIP MORRIS INTL .........................67.70 -0.63 72.74 50.54
PROCTER AND GAMBLE ..................61.62 -0.26 67.72 56.57
QUALCOMM INC ................................51.07 -0.19 59.84 37.54
SCHLUMBERGER ..............................78.63 -1.44 95.64 52.91
TRAVELERS CIES..............................51.98 -0.29 64.17 48.46
UNITED TECHNOLOGIE ....................72.55 -0.99 91.83 64.57
UNITEDHEALTH GROUP...................45.50 -0.44 53.50 30.82
VERIZON COMMS ..............................34.88 -0.17 38.95 29.10
WAL-MART STORES..........................51.92 1.94 57.90 48.31
WALT DISNEY CO ..............................33.42 -0.23 44.34 29.60
WELLS FARGO & CO.........................24.55 -0.47 34.25 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.500 0.00
LIBOR Euro - overnight ..................0.842 0.00
LIBOR Euro - 12 months ................2.053 0.00
LIBOR USD - overnight...................0.142 0.00
LIBOR USD - 12 months.................0.775 0.00
HaIifax mortgage rate .....................3.990 0.00
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.000 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................3.660 -0.02
European repo rate.........................0.734 -0.01
Euro Euribor ....................................1.140 0.00
The vix index ...................................33.52 1.65
The baItic dry index ........................1.306 0.01
Markit iBoxx...................................227.74 -0.35
Markit iTraxx..................................141.15 -8.67
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.4413 0.0039
C/ 0.8762 0.0056
C/ 110.57 0.4100
/C 1.1415 0.0071
/$ 1.6441 0.0055
/ 126.17 0.2974
FTSE 100
5357.63
7.05
FTSE 250
10412.73
119.07
FTSE ALLSHARE
2780.31
1.04
DOW
11405.93
76.97
NASDAQ
2523.45
47.22
S&P 500
1192.76
11.73
RPC Group . . . . . . . .328.6 -2.0 384.8 209.2
Smiths Group . . . . . .976.0 2.5 1429.0 945.5
Brown (N.) Group . . .266.9 -0.1 311.2 221.0
Carpetright . . . . . . . . .579.5 -3.0 835.5 564.0
Debenhams . . . . . . . . .60.3 -0.8 77.4 56.1
Dignity . . . . . . . . . . . .767.0 -8.0 833.0 633.0
Dixons RetaiI . . . . . . .12.9 -0.3 28.5 11.8
DuneImGroup . . . . . .447.1 1.0 550.0 371.3
HaIfords Group . . . . .299.8 -1.5 504.5 289.1
Home RetaiI Group . .136.7 -0.2 235.0 118.1
Inchcape . . . . . . . . . .334.2 -13.8 425.4 253.2
JD Sports Fashion . .851.5 -23.5 1030.0 726.0
Kesa EIectricaIs . . . .112.9 -1.2 174.0 109.0
Kingfisher . . . . . . . . .236.5 5.2 287.1 198.5
Marks & Spencer G . .339.5 -0.4 427.5 325.4
Mothercare . . . . . . . .379.0 -1.6 627.5 367.6
Next . . . . . . . . . . . . .2257.0 -17.0 2426.0 1868.0
Sports Direct Int . . . .222.8 2.8 266.2 103.5
WH Smith . . . . . . . . . .456.4 -6.6 523.0 398.2
Smith & Nephew . . . .563.0 4.5 742.0 521.0
Synergy HeaIth . . . . .924.0 29.5 981.0 660.0
Barratt DeveIopme . . .77.2 -3.2 119.0 70.1
BeIIway . . . . . . . . . . . .589.0 -7.0 753.5 511.0
YuIe Catto & Co . . . . .182.3 -5.7 253.0 136.5
BaIfour Beatty . . . . . .262.9 -1.2 357.3 234.6
KeIIer Group . . . . . . .389.5 0.0 698.5 373.6
Kier Group . . . . . . . .1189.0 -21.0 1418.0 970.0
Drax Group . . . . . . . .481.7 -5.4 535.0 353.6
Scottish & Southe . .1265.0 -3.0 1423.0 1108.0
Domino Printing S . .580.0 -7.0 705.0 382.0
HaIma . . . . . . . . . . . . .365.9 -3.4 429.6 270.0
Laird . . . . . . . . . . . . . .160.0 0.6 207.0 121.1
Morgan CrucibIe C . .278.8 -10.6 357.1 189.1
Renishaw . . . . . . . . .1401.0 -50.0 1886.0 835.0
Spectris . . . . . . . . . .1397.0 -10.0 1679.0 869.5
Aberforth SmaIIer . . .611.0 -11.0 714.0 507.0
AIIiance Trust . . . . . .342.6 -2.7 392.7 307.6
Bankers Inv Trust . . .383.0 -6.0 428.0 353.6
BH GIobaI Ltd. GB . .1115.0 6.0 1174.0 1058.0
BH GIobaI Ltd. US . . . .11.2 0.2 11.6 10.4
BH Macro Ltd. EUR . . .18.4 0.1 18.6 15.8
BH Macro Ltd. GBP 1901.0 21.0 1905.0 1630.0
BH Macro Ltd. USD . . .18.4 -0.0 18.6 15.8
BIackRock WorId M .690.0 -17.0 815.5 557.0
BIueCrest AIIBIue . . .169.1 1.1 176.2 162.4
British Assets Tr . . . .122.0 -1.0 140.5 113.0
British Empire Se . . .484.8 -5.1 533.0 422.5
CaIedonia Investm .1653.0 -18.0 1928.0 1543.0
City of London In . . .273.1 -1.5 306.9 249.3
Dexion AbsoIute L . .140.3 0.4 151.0 135.2
Edinburgh Dragon . .223.8 -2.7 262.1 215.0
Edinburgh Inv Tru . . .447.5 -3.7 492.2 392.4
EIectra Private E . . .1520.0 -22.0 1755.0 1289.0
F&C Inv Trust . . . . . .285.1 -0.9 327.9 263.8
FideIity China Sp . . . . .87.1 -2.6 128.7 80.0
FideIity European . .1090.0 -10.0 1287.0 937.5
FideIity SpeciaI . . . . .496.1 -6.9 595.0 469.0
HeraId Inv Trust . . . . .469.0 -5.4 545.5 383.5
HICL Infrastructu . . . .115.5 -0.2 121.3 112.0
Impax Environment .103.5 -4.1 130.5 98.0
JPMorgan American .776.0 -2.5 916.0 673.0
JPMorgan Asian In . .208.4 -4.4 250.8 195.3
JPMorgan Emerging .525.0 -3.5 639.0 505.5
JPMorgan European .788.0 -16.0 983.5 641.0
JPMorgan Indian I . . .383.3 -7.7 502.0 365.6
JPMorgan Russian .533.5 -11.5 755.0 515.0
Law Debenture Cor . .347.0 -6.0 385.0 295.1
MercantiIe Inv Tr . . . .952.5 -19.5 1137.0 895.0
Merchants Trust . . . .375.0 -2.5 431.8 345.0
Monks Inv Trust . . . .326.0 -0.8 367.9 292.1
Murray Income Tru . .608.0 -10.5 673.0 553.5
Murray Internatio . . .880.0 -2.0 991.5 824.0
PerpetuaI Income . . .250.0 -4.0 276.0 218.0
PoIar Cap TechnoI . .326.5 3.5 391.2 275.6
RIT CapitaI Partn . . .1271.0 -26.0 1334.0 1107.0
Scottish Inv Trus . . . .449.0 -8.0 524.0 409.0
Scottish Mortgage . .688.5 -15.0 781.0 566.0
SVG CapitaI . . . . . . . .255.0 0.3 279.8 148.9
TempIe Bar Inv Tr . . .853.0 -11.0 952.0 754.0
TempIeton Emergin .582.0 -7.0 689.5 539.0
TR Property Inv T . . .175.1 -5.7 206.1 142.0
TR Property Inv T . . . .79.3 -1.9 94.0 64.5
Witan Inv Trust . . . . .462.2 -2.8 533.0 426.1
3i Group . . . . . . . . . . .227.5 -2.6 340.0 212.6
3i Infrastructure . . . .122.4 0.8 125.2 112.9
Aberdeen Asset Ma .192.6 1.4 240.0 132.3
Ashmore Group . . . .377.3 -2.6 414.5 282.8
Brewin DoIphin Ho . .134.0 1.9 185.4 117.0
CameIIia . . . . . . . . . .9300.0 25.010950.0 8050.0
CharIes TayIor Co . . .145.0 -8.3 234.0 122.0
City of London Gr . . . .77.5 0.0 93.6 77.5
City of London In . . .378.3 -6.8 461.5 278.5
CIose Brothers Gr . . .710.0 4.5 888.5 656.5
CoIIins Stewart H . . . .71.0 2.0 90.8 69.0
EvoIution Group . . . . .90.0 7.5 96.5 62.3
F&C Asset Managem .68.1 0.1 92.9 51.5
Hargreaves Lansdo .458.0 -14.1 646.5 386.0
HeIphire Group . . . . . . .3.1 -0.0 39.0 2.4
Henderson Group . . .142.0 0.4 173.1 119.1
Highway CapitaI . . . . .14.5 0.0 21.0 6.0
ICAP . . . . . . . . . . . . . .444.5 14.0 570.5 391.3
IG Group HoIdings . .426.7 -2.0 553.0 397.4
Intermediate Capi . . .233.6 -0.5 360.3 204.8
InternationaI Per . . . .267.2 -7.7 388.8 228.6
InternationaI Pub . . . .117.1 0.1 118.3 108.6
Investec . . . . . . . . . . .408.9 -6.8 538.0 387.5
IP Group . . . . . . . . . . . .44.9 0.0 54.5 27.9
Jupiter Fund Mana . .216.0 1.3 337.3 188.7
Liontrust Asset M . . . .82.1 -0.5 95.3 72.0
LMS CapitaI . . . . . . . . .62.3 0.3 64.8 40.8
London Finance & . . .21.5 0.0 23.5 16.5
London Stock Exch .870.5 5.5 1076.0 640.0
Lonrho . . . . . . . . . . . . .15.6 0.4 19.8 10.5
Man Group . . . . . . . . .199.5 1.6 311.0 178.0
Paragon Group Of . .154.3 -4.6 206.1 126.4
Provident Financi . .1038.0 -2.0 1116.0 728.5
Rathbone Brothers .1023.0 -12.0 1257.0 815.0
Record . . . . . . . . . . . . .29.6 0.0 52.0 20.3
RSM Tenon Group . . .27.5 0.0 66.3 21.3
Schroders . . . . . . . .1520.0 -3.0 1922.0 1330.0
Schroders (Non-Vo .1226.0 -8.0 1554.0 1071.0
TuIIett Prebon . . . . . .369.8 2.8 428.6 334.5
WaIker Crips Grou . . .46.0 1.0 51.5 44.0
BT Group . . . . . . . . . .177.0 -1.5 204.1 130.6
CabIe & WireIess . . . .32.8 -0.8 61.1 31.3
CabIe & WireIess . . . .37.8 -0.8 78.4 35.0
COLT Group SA . . . . .115.0 -1.0 156.2 109.0
TaIkTaIk TeIecom . . .128.9 -0.1 168.3 123.6
TeIecomPIus . . . . . . .647.0 -30.0 700.0 352.5
Booker Group . . . . . . .69.4 0.4 77.9 43.3
Greggs . . . . . . . . . . . .481.1 -1.2 550.5 429.1
Morrison (Wm) Sup .289.6 5.8 308.3 262.7
Ocado Group . . . . . . .118.7 -3.3 285.0 116.2
Sainsbury (J) . . . . . . .302.5 2.7 395.0 280.4
Tesco . . . . . . . . . . . . .383.0 3.3 440.7 360.1
Associated Britis . .1022.0 0.0 1182.0 940.0
Cranswick . . . . . . . . .638.5 1.5 896.0 606.0
Dairy Crest Group . . .353.3 1.3 424.9 334.1
Devro . . . . . . . . . . . . .263.0 -10.7 296.9 218.0
Premier Foods . . . . . . .14.8 0.3 35.1 13.0
Tate & LyIe . . . . . . . . .589.5 6.5 656.0 409.1
UniIever . . . . . . . . . .2035.0 3.0 2065.0 1688.0
Mondi . . . . . . . . . . . . .522.0 -17.0 664.0 447.0
Centrica . . . . . . . . . . .304.5 -5.7 346.1 287.3
InternationaI Pow . . .297.7 -2.4 448.6 279.4
NationaI Grid . . . . . . .600.0 1.0 632.5 529.5
Northumbrian Wate .458.5 -2.0 469.5 295.5
Pennon Group . . . . . .655.0 -13.0 737.5 560.0
Severn Trent . . . . . .1461.0 -33.0 1517.0 1288.0
United UtiIities . . . . .592.5 -6.5 632.0 543.5
Cookson Group . . . . .534.5 -13.5 724.5 412.3
DS Smith . . . . . . . . . .199.5 -0.7 266.2 125.8
Rexam . . . . . . . . . . . .366.3 4.0 400.0 293.0
GIencore Internat . . .396.0 -11.1 531.1 363.0
BAE Systems . . . . . .261.6 -2.4 369.9 248.1
Chemring Group . . . .498.9 -15.6 736.5 486.7
Cobham . . . . . . . . . . .182.6 0.2 245.6 174.2
Meggitt . . . . . . . . . . . .345.5 -3.2 397.6 261.7
QinetiQ Group . . . . . .113.4 -3.6 136.3 96.7
RoIIs-Royce Group . .606.5 4.5 665.0 553.0
Senior . . . . . . . . . . . . .160.9 -4.1 190.6 111.2
UItra EIectronics . . .1411.0 -11.0 1895.0 1353.0
GKN . . . . . . . . . . . . . .198.4 -3.8 245.0 136.4
BarcIays . . . . . . . . . . .181.6 -1.8 333.6 163.7
HSBC HoIdings . . . . .552.6 5.4 730.9 516.2
LIoyds Banking Gr . . .33.3 0.0 77.6 30.9
RoyaI Bank of Sco . . .25.7 -0.5 50.2 24.3
Standard Chartere .1421.0 0.0 1950.0 1371.5
AG Barr . . . . . . . . . .1156.0 -19.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .325.9 -0.1 503.5 308.7
Diageo . . . . . . . . . . .1194.0 5.0 1307.0 1050.0
SABMiIIer . . . . . . . . .2118.0 13.0 2340.0 1841.0
AZ EIectronic Mat . . .230.7 -12.3 338.1 216.0
Croda Internation . .1744.0 -32.0 2081.0 1230.0
EIementis . . . . . . . . . .151.5 -3.0 187.4 86.0
Johnson Matthey . .1773.0 -36.0 2119.0 1550.0
Victrex . . . . . . . . . . .1336.0 36.0 1590.0 1076.0
Price Chg High Low
BerkeIey Group Ho .1127.0 -15.0 1299.0 789.5
Bovis Homes Group .352.9 -5.1 464.7 326.6
Persimmon . . . . . . . .413.3 -5.2 502.5 336.5
Reckitt Benckiser . .3309.0 12.0 3648.0 3015.0
Redrow . . . . . . . . . . . .118.4 -2.4 139.0 97.6
TayIor Wimpey . . . . . . .31.8 -1.1 43.3 22.3
Bodycote . . . . . . . . . .314.6 -7.3 397.7 214.5
Charter Internati . . . .691.0 -14.0 853.5 538.5
Fenner . . . . . . . . . . . .346.0 -9.9 422.5 198.0
IMI . . . . . . . . . . . . . . . .865.5 -13.5 1119.0 657.5
MeIrose . . . . . . . . . . .318.0 -3.5 365.4 205.4
Northgate . . . . . . . . . .293.0 -3.0 346.7 180.8
Rotork . . . . . . . . . . .1635.0 4.0 1895.0 1478.0
Spirax-Sarco Engi . .1752.0 -21.0 2063.0 1501.0
Weir Group . . . . . . .1908.0 -17.0 2218.0 1130.0
Ferrexpo . . . . . . . . . . .368.0 -17.8 499.0 278.0
TaIvivaara Mining . . .360.3 -15.2 622.0 313.1
BBAAviation . . . . . . .175.0 -2.8 240.8 170.0
Stobart Group Ltd . . .133.1 -2.3 163.6 124.1
AdmiraI Group . . . . .1531.0 11.0 1754.0 1397.0
AmIin . . . . . . . . . . . . .334.0 -6.4 433.0 317.7
Huntsworth . . . . . . . . .66.9 0.0 86.0 59.8
Informa . . . . . . . . . . . .352.5 -2.5 461.1 340.5
ITE Group . . . . . . . . . .187.0 -3.4 258.2 150.3
ITV . . . . . . . . . . . . . . . . .59.9 -1.0 93.5 49.9
Johnston Press . . . . . . .5.3 -0.1 16.3 4.4
MecomGroup . . . . . .184.0 -5.3 310.0 180.0
Moneysupermarket. .107.5 2.5 120.4 70.3
Pearson . . . . . . . . . .1099.0 1.0 1207.0 926.0
PerformGroup . . . . .170.1 -3.4 234.5 156.2
Reed EIsevier . . . . . .484.5 -5.7 590.5 466.3
Rightmove . . . . . . . .1130.0 2.0 1250.0 596.5
STV Group . . . . . . . . .111.9 -0.5 168.0 83.5
Tarsus Group . . . . . .150.0 -1.0 165.0 112.5
Trinity Mirror . . . . . . . .44.3 -0.3 124.0 37.5
United Business M . .465.8 -8.2 725.0 441.9
UTV Media . . . . . . . . .111.6 -0.9 151.0 102.5
WiImington Group . . .99.8 -0.3 183.0 99.3
WPP . . . . . . . . . . . . . .631.0 -9.5 846.5 598.0
YeII Group . . . . . . . . . . .5.6 -0.2 18.6 5.1
African Barrick G . . .531.0 -6.0 638.0 393.5
AngIo American . . .2460.5 12.5 3437.0 2254.0
AngIo Pacific Gro . . .300.0 0.0 369.3 249.0
Antofagasta . . . . . . .1228.0 -36.0 1634.0 977.5
Aquarius PIatinum . .243.6 -3.9 419.0 216.9
BHP BiIIiton . . . . . . .2014.5 -25.0 2631.5 1767.0
BeazIey . . . . . . . . . . . .113.5 -1.0 139.2 110.1
CatIin Group Ltd. . . .388.0 -4.1 421.4 325.0
Hiscox Ltd. . . . . . . . . .358.3 4.2 424.7 341.5
Jardine LIoyd Tho . . .610.0 -4.5 709.0 561.0
Lancashire HoIdin . . .670.0 -6.0 700.0 518.5
RSA Insurance Gro . .118.2 0.6 143.5 109.5
Aviva . . . . . . . . . . . . . .354.2 -1.6 477.9 328.4
LegaI & GeneraI G . . .102.6 -0.3 123.8 89.4
OId MutuaI . . . . . . . . .116.7 2.8 145.2 103.2
Phoenix Group HoI . .506.5 -4.5 758.0 458.0
PrudentiaI . . . . . . . . .636.5 7.0 777.0 547.0
ResoIution Ltd. . . . . .267.9 0.1 316.1 211.3
St James's PIace . . . .340.5 -15.4 376.0 236.2
Standard Life . . . . . . .212.4 6.2 244.7 172.0
4Imprint Group . . . . .237.5 -2.5 295.0 195.0
Aegis Group . . . . . . .138.3 0.1 163.5 110.7
BIoomsbury PubIis . .104.3 -0.3 138.0 98.8
British Sky Broad . . .675.0 -8.5 850.0 651.5
Centaur Media . . . . . . .39.9 -0.6 73.0 39.0
Chime Communicati .211.0 -2.0 298.5 165.8
Creston . . . . . . . . . . . .89.0 -2.5 121.0 78.5
DaiIy MaiI and Ge . . .380.1 -8.1 594.5 363.3
Euromoney Institu . .609.0 -3.5 736.0 578.0
Future . . . . . . . . . . . . . .13.1 0.0 30.0 11.8
Haynes PubIishing . .230.0 0.0 262.5 202.5
Centamin Egypt Lt . .108.0 0.0 197.1 89.7
Eurasian NaturaI . . .631.5 -2.0 1125.0 585.5
FresniIIo . . . . . . . . . .1861.0 65.0 1907.0 990.0
GemDiamonds Ltd. .187.0 -0.4 306.0 179.8
HochschiId Mining . .456.4 -11.8 680.0 315.0
Kazakhmys . . . . . . .1029.0 -21.0 1671.0 918.0
Kenmare Resources . .45.5 -2.0 59.9 15.3
Lonmin . . . . . . . . . . .1194.0 -6.0 1983.0 1103.0
New WorId Resourc .587.5 -29.0 1060.0 543.5
PetropavIovsk . . . . . .751.5 8.5 1252.0 676.0
RandgoId Resource 6435.0 255.0 6655.0 4425.0
Rio Tinto . . . . . . . . .3729.0 35.0 4712.0 3105.0
Vedanta Resources 1383.0 -42.0 2559.0 1287.0
Xstrata . . . . . . . . . . .1081.0 -11.5 1550.0 969.8
Inmarsat . . . . . . . . . . .444.7 -4.1 725.0 389.7
Vodafone Group . . . .168.0 0.2 181.9 149.4
Genesis Emerging . .467.6 -4.4 568.0 445.5
Afren . . . . . . . . . . . . . .107.3 -5.5 171.2 92.5
BG Group . . . . . . . . .1318.5 25.0 1564.5 1023.0
BP . . . . . . . . . . . . . . . .416.6 -0.2 509.0 375.2
Cairn Energy . . . . . . .315.0 -5.0 493.2 284.4
EnQuest . . . . . . . . . . .113.4 -1.4 158.5 98.0
Essar Energy . . . . . .294.0 -6.3 589.5 262.1
ExiIIon Energy . . . . . .353.8 0.9 469.7 167.0
Heritage OiI . . . . . . . .227.9 2.7 486.0 190.0
JKX OiI & Gas . . . . . .209.0 -2.9 335.1 198.1
Premier OiI . . . . . . . . .364.4 -6.0 535.0 327.3
RoyaI Dutch SheII . .2005.5 -10.0 2326.5 1703.0
RoyaI Dutch SheII . .2012.5 -15.5 2336.0 1642.0
SaIamander Energy .242.0 -0.5 317.6 210.0
Soco Internationa . . .302.3 -9.5 484.2 279.8
TuIIow OiI . . . . . . . . .1075.0 -6.0 1493.0 951.5
Amec . . . . . . . . . . . . .963.5 14.5 1251.0 834.0
Hunting . . . . . . . . . . .696.0 -5.0 817.0 554.0
John Wood Group . .579.5 11.5 715.8 350.4
LampreII . . . . . . . . . . .319.9 -1.1 395.2 223.9
Petrofac Ltd. . . . . . .1216.0 -28.0 1685.0 1110.0
Burberry Group . . . .1358.0 -28.0 1600.0 820.5
PZ Cussons . . . . . . . .354.6 2.8 409.0 320.5
Supergroup . . . . . . . .980.0 0.0 1820.0 818.5
AstraZeneca . . . . . .2832.5 6.0 3385.0 2543.5
BTG . . . . . . . . . . . . . .275.0 -5.0 309.7 200.1
Genus . . . . . . . . . . . . .885.0 -15.0 1046.0 710.5
GIaxoSmithKIine . . .1280.0 3.0 1385.0 1127.5
Hikma Pharmaceuti .670.0 -13.0 900.0 561.5
Shire PIc . . . . . . . . . .1963.0 12.0 2136.0 1376.0
CapitaI & Countie . . .171.3 -3.7 203.7 115.0
Daejan HoIdings . . .2510.0 35.0 2954.0 2282.0
F&C CommerciaI Pr .102.0 -0.3 108.0 88.0
Grainger . . . . . . . . . . .100.5 -1.6 133.2 86.3
London & Stamford .122.3 -1.0 140.0 110.3
SaviIIs . . . . . . . . . . . . .317.9 -0.5 427.1 296.6
St. Modwen Proper . .140.0 -0.1 196.2 135.4
UK CommerciaI Pro . .79.8 0.6 85.5 70.4
Unite Group . . . . . . . .169.1 2.7 229.8 162.8
Big YeIIow Group . . .250.0 -6.0 353.3 237.4
British Land Co . . . . .544.0 -20.0 629.5 447.5
CapitaI Shopping . . .333.6 -3.4 424.8 312.5
Derwent London . . .1736.0 -29.0 1880.0 1374.0
Great PortIand Es . . .384.5 -8.5 445.0 308.0
Hammerson . . . . . . . .426.6 -3.9 490.9 352.2
Hansteen HoIdings . . .78.3 -0.3 89.5 62.4
Land Securities G . . .800.5 -8.5 885.0 598.0
SEGRO . . . . . . . . . . . .251.6 -4.9 331.3 243.4
Shaftesbury . . . . . . . .488.2 -7.9 539.0 397.5
Autonomy Corporat 1572.0 -8.0 1857.0 1271.0
Aveva Group . . . . . .1507.0 -31.0 1799.0 1340.0
Computacenter . . . . .422.0 0.2 490.0 265.0
Fidessa Group . . . . .1592.0 2.0 2109.0 1350.0
Invensys . . . . . . . . . . .250.1 -6.5 364.3 230.2
Kofax . . . . . . . . . . . . .315.1 -6.9 535.0 231.0
Logica . . . . . . . . . . . . .86.4 -3.5 147.2 83.7
Micro Focus Inter . . .298.7 -11.6 426.2 239.4
Misys . . . . . . . . . . . . .263.9 -7.9 420.2 249.2
Sage Group . . . . . . . .249.2 -2.8 302.0 236.7
SDL . . . . . . . . . . . . . . .632.5 -25.0 711.5 520.0
TeIecity Group . . . . . .522.0 -13.0 559.5 430.0
Aggreko . . . . . . . . . .1893.0 -1.0 2034.0 1351.3
Ashtead Group . . . . .118.1 -5.2 207.9 77.0
Atkins (WS) . . . . . . . .604.5 -10.0 820.0 582.0
Babcock Internati . . .619.0 -2.5 733.0 492.8
Berendsen . . . . . . . . .462.8 8.3 568.0 363.1
BunzI . . . . . . . . . . . . .731.5 2.5 801.0 676.5
Capita Group . . . . . . .718.0 10.0 794.5 635.5
CariIIion . . . . . . . . . . .327.8 -4.3 403.2 291.2
De La Rue . . . . . . . . .808.0 -21.5 853.5 549.5
EIectrocomponents .206.3 -3.2 294.9 190.5
Experian . . . . . . . . . . .718.5 -7.5 833.5 606.0
FiItrona PLC . . . . . . . .328.9 -1.1 385.5 227.5
G4S . . . . . . . . . . . . . . .255.9 -0.5 291.0 237.7
Hays . . . . . . . . . . . . . . .76.5 -1.0 133.6 69.4
Homeserve . . . . . . . .459.1 -8.3 532.0 408.0
Howden Joinery Gr . . .99.3 -1.4 127.5 63.0
Intertek Group . . . . .1944.0 -14.0 2148.0 1646.0
MichaeI Page Inte . . .373.2 5.2 567.0 360.0
Mitie Group . . . . . . . .217.9 -4.9 242.5 188.7
Premier FarneII . . . . .181.0 -2.5 308.8 168.4
Regus . . . . . . . . . . . . . .82.4 -0.9 119.0 66.1
RentokiI InitiaI . . . . . . .79.4 0.7 107.1 74.5
RPS Group . . . . . . . . .206.5 -0.9 253.0 169.8
Serco Group . . . . . . .532.5 2.5 633.0 495.7
Shanks Group . . . . . .116.5 -0.7 130.9 96.5
SIG . . . . . . . . . . . . . . .113.5 -1.8 153.5 90.7
SThree . . . . . . . . . . . .270.0 -2.0 447.6 231.1
Travis Perkins . . . . . .808.5 -2.5 1127.0 727.5
WoIseIey . . . . . . . . .1572.0 -23.0 2261.0 1223.0
ARM HoIdings . . . . . .525.5 5.0 651.0 307.0
CSR . . . . . . . . . . . . . .240.9 -4.6 447.0 229.3
Imagination Techn . .344.0 -1.5 502.0 303.5
Pace . . . . . . . . . . . . . .105.7 5.0 231.8 91.0
Spirent Communica .130.5 -2.8 160.3 119.8
British American . .2784.0 54.0 2871.0 2166.0
ImperiaI Tobacco . .2052.0 14.0 2231.0 1784.0
Avis Europe . . . . . . . .312.4 -0.5 313.0 184.0
Betfair Group . . . . . . .612.5 0.5 1550.0 567.0
Bwin.party Digita . . . .114.2 8.5 297.9 101.7
CarnivaI . . . . . . . . . .1900.0 0.0 3153.0 1792.0
Compass Group . . . .536.5 -6.0 612.0 504.5
Domino's Pizza UK . .488.2 1.4 586.0 377.0
easyJet . . . . . . . . . . . .352.3 5.2 479.0 301.0
Enterprise Inns . . . . . .43.9 2.6 122.7 38.0
FirstGroup . . . . . . . . .347.8 -4.4 412.6 311.3
Go-Ahead Group . . .1427.0 -24.0 1598.0 1073.0
Greene King . . . . . . .437.5 0.0 518.0 398.0
InterContinentaI . . .1057.0 -3.0 1435.0 963.0
InternationaI Con . . .187.9 -2.4 305.0 177.3
JD Wetherspoon . . . .410.0 -9.8 468.3 389.9
Ladbrokes . . . . . . . . .126.5 -2.6 155.3 122.7
Marston's . . . . . . . . . . .92.6 -2.1 117.1 90.2
MiIIennium& Copt . .450.0 -10.0 600.5 437.9
MitcheIIs & ButIe . . . .247.0 -3.5 361.0 229.1
NationaI Express . . .240.8 -3.8 270.2 220.1
Rank Group . . . . . . . .120.0 -2.0 153.7 103.3
Restaurant Group . . .272.8 -0.9 335.0 229.2
Spirit Pub Compan . . .44.0 -0.1 55.0 37.0
Stagecoach Group . .238.3 -6.4 268.5 165.1
Thomas Cook Group .52.3 -4.7 204.8 45.5
TUI TraveI . . . . . . . . . .160.7 -4.0 271.9 155.0
Whitbread . . . . . . . .1485.0 -13.0 1887.0 1368.0
WiIIiamHiII . . . . . . . . .223.1 -0.9 237.3 155.5
Abcam . . . . . . . . . . . .350.0 -16.3 460.0 304.6
AIbemarIe & Bond . .383.0 8.0 400.1 224.8
Amerisur Resource . .17.8 -0.3 29.0 11.5
Andor TechnoIogy . .580.0 -11.5 685.0 311.0
ArchipeIago Resou . . .75.0 0.0 79.0 32.3
ASOS . . . . . . . . . . . .1806.0 -69.0 2468.0 840.0
AureIian OiI & Ga . . . .44.8 0.8 92.0 42.5
Avanti Communicat .323.3 -0.8 735.0 288.8
Avocet Mining . . . . . .241.0 -4.0 253.5 112.0
BIinkx . . . . . . . . . . . . . .98.8 -2.3 148.8 63.3
Borders & Souther . . .51.8 -1.8 93.0 44.8
BowLeven . . . . . . . . .139.0 -4.8 398.0 116.3
Brooks MacdonaId 1053.0 -9.5 1372.5 840.0
CaIedon Resources .111.8 0.0 111.8 44.3
Conygar Investmen . .97.5 0.0 120.0 95.4
Cove Energy . . . . . . . .67.8 -1.8 112.8 57.0
Daisy Group . . . . . . .108.6 -2.3 127.0 88.0
EMIS Group . . . . . . . .534.5 -5.8 580.0 303.5
Encore OiI . . . . . . . . . .48.5 -1.3 151.5 40.8
Faroe PetroIeum . . . .147.8 -2.3 218.3 133.0
GuIfsands PetroIe . . .185.0 -2.3 401.5 179.0
GWPharmaceuticaI . .99.5 -4.5 130.0 83.0
Hamworthy . . . . . . . .564.5 -33.0 705.0 328.0
Hargreaves Servic . .921.0 -4.0 1076.0 605.0
HeaIthcare Locums . . . .0.0 0.0 0.0 0.0
Immunodiagnostic .1060.0 20.0 1218.0 710.0
ImpeIIamGroup . . . .275.3 -18.1 387.5 122.0
James HaIstead . . . . .450.0 -10.1 495.0 306.0
KaIahari MineraIs . . .233.0 3.0 301.0 142.0
London Mining . . . . .310.0 -7.0 436.5 240.3
Lupus CapitaI . . . . . . .99.0 -4.0 150.0 78.0
M. P. Evans Group . .401.9 3.9 500.5 350.3
Majestic Wine . . . . . .436.0 5.8 510.0 306.0
May Gurney Integr . .258.6 -4.3 295.0 177.0
Monitise . . . . . . . . . . . .34.5 0.0 39.0 18.5
MuIberry Group . . . .1725.0 -40.0 1920.0 330.0
Nanoco Group . . . . . . .68.0 -2.0 115.8 57.5
NauticaI PetroIeu . . .280.0 -9.0 547.0 151.0
NichoIs . . . . . . . . . . . .535.0 -6.5 579.0 410.0
Numis Corporation . . .96.9 -1.0 146.5 93.9
Pan African Resou . . .12.0 -0.3 13.8 6.1
Patagonia GoId . . . . . .63.3 3.5 68.0 15.3
Prezzo . . . . . . . . . . . . .64.1 1.8 71.5 41.5
Pursuit Dynamics . . .240.0 -15.0 700.0 160.5
Rockhopper ExpIor .231.0 -6.0 510.0 141.0
RWS HoIdings . . . . . .455.0 43.5 472.0 244.0
Songbird Estates . . .126.5 2.3 160.3 110.3
VaIiant PetroIeum . . .527.5 -15.5 761.5 504.0
Young & Co's Brew . .650.0 -5.0 712.0 525.0
Bwin.party DigitaI . . .114.2 8.0
Enterprise Inns . . . . . .43.9 6.3
Pace . . . . . . . . . . . . . .105.7 5.0
RandgoId Resources6435.0 4.1
FresniIIo . . . . . . . . . .1861.0 3.6
Synergy HeaIth . . . . .924.0 3.3
ICAP . . . . . . . . . . . . . .444.5 3.3
Standard Life . . . . . . .212.4 3.0
Victrex . . . . . . . . . . .1336.0 2.8
OId MutuaI . . . . . . . . .116.7 2.5
Thomas Cook Group .52.3 -8.2
AZ EIectronic Mate . .230.7 -5.1
Afren . . . . . . . . . . . . .107.3 -4.9
New WorId Resource 587.5 -4.7
Ferrexpo . . . . . . . . . .368.0 -4.6
TeIecom PIus . . . . . . .647.0 -4.4
St James's PIace . . . .340.5 -4.3
Kenmare Resources . .45.5 -4.3
Ashtead Group . . . . .118.1 -4.2
TaIvivaara Mining . . .360.3 -4.1
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 . . . . .100.71 -0.14 103.5 100.7
Tsy 2.500 11 . . . . .306.48 0.04 310.0 306.4
Tsy 9.000 12 . . . .108.00 0.00 115.8 107.8
Tsy 5.000 12 . . . .102.43 -0.04 106.8 102.4
Tsy 5.250 12 . . . .103.74 0.00 108.1 103.7
Tsy 4.500 13 . . . .105.95 0.02 109.2 105.8
Tsy 2.500 13 . . . .285.47 0.26 287.7 277.5
Tsy 8.000 13 . . . . .115.29 0.01 121.3 115.3
Tsy 5.000 14 . . . . .112.31 -0.11 114.1 109.2
Tsy 4.750 15 . . . . .114.06 -0.13 114.7 108.6
Tsy 7.750 15 . . . .102.60 -0.49 342.1 102.6
Tsy 8.000 15 . . . .128.32 -0.16 131.6 123.7
Tsy 4.000 16 . . . . .112.18 -0.14 112.9 104.9
Tsy 2.500 16 . . . .339.25 0.19 340.1 310.2
Tsy 8.750 17 . . . .140.08 -0.46 142.2 132.9
Tsy 12.000 17 . . .125.69 0.00 185.9 125.2
Tsy 1.250 17 . . . . .114.07 0.27 114.4 106.7
Tsy 5.000 18 . . . . .119.33 -0.18 120.0 109.7
Tsy 4.500 19 . . . . .116.39 -0.12 116.9 105.4
Tsy 3.750 19 . . . . .110.68 -0.14 111.2 99.4
Tsy 4.750 20 . . . . .118.07 -0.13 118.7 106.6
Tsy 2.500 20 . . . .351.40 0.19 352.2 312.4
Tsy 8.000 21 . . . .147.59 -0.17 148.7 133.8
Tsy 1.875 22 . . . .121.54 0.17 121.9 111.3
Tsy 4.000 22 . . . . .110.19 -0.15 111.0 99.0
Tsy 2.500 24 . . . .310.25 0.07 311.4 273.5
Tsy 5.000 25 . . . . .119.16 -0.27 120.2 107.4
Tsy 4.250 27 . . . .108.71 -0.37 109.8 97.9
Tsy 1.250 27 . . . . .115.27 0.04 115.6 104.6
Tsy 6.000 28 . . . .131.85 -0.39 133.2 119.5
Tsy 4.750 30 . . . . .113.98 -0.46 115.5 103.0
Tsy 4.125 30 . . . .291.94 -0.18 293.3 260.0
Tsy 4.250 32 . . . .106.64 -0.52 108.3 96.0
Tsy 4.250 36 . . . .105.14 -0.61 107.4 95.0
Tsy 4.750 38 . . . . .113.71 -0.66 116.5 102.8
Tsy 4.500 42 . . . . .110.06 0.00 112.8 98.9
% %
17
Wealth Management| Markets
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31.75
T
HE story of the crumbling Eurozone
took a new twist yesterday with a
joint press conference given by
German chancellor Angela Merkel
and French president Nicolas Sarkozy. This
followed an afternoon of meetings between
the two premiers, as they discussed ways to
shore up the euro.
The plight affecting the euro has largely
been centered on the woes of the periphery
Eurozone countries, as the stronger central
economies bailed them out lest they sank
under the weight of their debt burden,
dragging the stronger economies down
with them. But this change became even
more apparent when France posted zero
growth in GDP and the perceived industrial
powerhouse of Germany posted only 0.1 per
cent quarter on quarter growth yesterday.
Piled on top of the doubts cast upon the
ability of German taxpayers to bail out
their profligate European cousins via the
ECB and the EFSF, speculation abounded
that French government debt was going to
be hit with a downgrade from its current
AAA status. These worries triggered
rumours of the introduction of a combined
eurobond. But Merkel rebutted these
rumours saying: I neither think that
Europe is at the point of needing its last
resort, nor do I think that we can solve
these problems with what I have called a
bang. I do not think euro bonds will help us
in this.
But though Merkel brushed off specula-
tion of a eurobond, the common theme of
the conference was a move towards fiscal
union of Eurozone countries. Sarkozy said
that proposals would be put forward to
elect a Eurozone president for two and a
half years, proposing current EC president
Herman Von Rompuy for this post. Sarkozy
was less solid in his stance against the idea
of a Eurobond, but supported its introduc-
tion only after further European fiscal inte-
gration. According to Alejandro Zambrano,
The shake up of the Eurozone structure will have drastic effects
on the long-term standing of the euro, writes Craig Drake
Sarkozy and Merkel
announce plans for
closer EU integration
J
UST how volatile was currency trading
last week? To understand it better, lets
take a look at euro-Swiss franc and dol-
lar-Swiss franc two pairs that carved
out enormous ranges in last weeks tumul-
tuous markets. For the past 250 trading days,
the average daily range in euro-Swissie has
been 149 points. Last week it expanded to
474 points, and last Thursday it reached a
staggering 664 points. In dollar-Swissie, the
range expansion was similarly impressive. On
a yearly basis the average range was about
110 points; last week that range nearly
tripled to 293 points and on Thursday,
when volatility was at its apex, dollar-Swissie
put in a range of 449 points. As the famous
financial blog Zero Hedge put it, Pre-inter-
vention, the two week rise in the Swiss franc
was a 7.8 sigma, one in 300 trillion event.
The recent moves in the currency markets
have been staggering. Still, we also know that
while price is notoriously difficult to forecast,
volatility tends to be mean-reverting, sug-
gesting that traders who are counting on fur-
ther rollercoaster price moves in the Swiss
pairs may be sorely disappointed.
After appreciating to record highs against
the euro and the dollar on safe haven flows,
the franc quickly weakened last week after
the Swiss National Bank suggested that it
might peg the unit to the euro.
Although the reality of a currency peg is
highly unlikely, just the possibility of such a
move was enough to send dollar-Swiss franc
and euro-Swiss franc shorts scurrying for
cover and both currencies verticalised in one
of the most vicious short covering rallies ever
seen. However, these gyrations will likely
cease this week. With no major economic
data on the calendar and with the European
Central Bank making a concerted effort to
prop up the periphery credit markets, traders
attention may drift back to the beach, as
everyone enjoys the last few weeks of sum-
mer before coming back to do battle again.
CALM SHOULD
RETURN FOR
FX MARKETS
BORIS SCHLOSSBERG
DIRECTOR OF CURRENCY RESEARCH, GFT
market strategist for FXCM, there are more
problems holding back eurobonds besides
fiscal integration: In the long run
eurobonds are most likely a part of these
proposed solutions, which is also good for
the euro. However, who will dictate the pre-
mium that Eurozone countries pay to bor-
row? If this is not set by markets rather by
officials we might end up wrong in either
case.
ACTIONS SPEAK LOUDLY
Angela Merkels opening gambit in yester-
days press conference was to announce:
Our proposals are designed to win and
secure the trust of the markets with
action. Merkel added: We believe that
Eurozone member states must, with a
higher commitment, ensure that the core
of this stability and growth pact will be
strictly adhered to.
However, despite Merkels aims of restor-
ing market confidence in the Eurozone,
the announcement seems to have had
quite the opposite effect, with the euro
falling against all of its major currency
pairings. There were a lot of fascinating
things to come out of the press conference
which started to see the euro tick up,
almost hitting yesterdays highs of $1.4476,
says Ian OSullivan, head of marketing at
Spread Co. But the early excitement faded
and reversed as soon as they moved on to
the issue of the EFSF and that it was big
enough, no need for expansion, as increas-
ing it would just invite speculation. This
sent euro-dollar crashing back below $1.440
as traders were pinning hopes on eurobond
news or expansion of the ESFS to shore up
the peripheral Eurozone countries.
TOBIN TROUBLES
Yesterdays press conference also saw the
Tobin tax rear its ugly head, as Sarkozy
announced that France and Germany
would propose a tax on financial transac-
tions in September. Though European
markets had already closed by the time the
announcement was made, it is likely that
this announcement will cause European
bank stocks to take a hit when markets
open this morning. As well as short term
Wealth Management | Foreign Exchange
18 CITYA.M. 17 AUGUST 2011
BONDS | EUROPEAN SOVEREIGN DEBT
Countries 5-year yield CDS spread
UK 2.5 76.66
Ireland 9.8 736.98
Belgium 4.1 233.54
Netherlands 2.69 66.39
France 2.97 147.02
Spain 4.22 330.31
Portugal 10.52 835.84
Italy 5 345.02
Greece 15.58 1,744.51
Germany 2.32 76.71
Source: Bloomberg
E
URO-STERLING rallied
hard last week on the back
of the UK riots, but ran into
a blockade of its own as it
approached strong moving aver-
age and Fibonacci resistance in
the 0.8820-40 area. There also
appears to be good support in the
0.8650 area so playing the
edges of this range for now, with
a stronger preference for the
downside, looks a good option.
Spread Co offers Euro-sterling at
0.8774-0.8776
Given the ongoing uncertainty
regarding debt management in
Europe and the US in addition to
poor activity data of late across
the developed world, funding
currencies like yen, dollar and
Swiss franc should stay well sup-
ported. More significant, a huge
policy decision is expected from
Switzerland today regarding
euro-Swiss intervention or even
possibly a fixed peg for the fore-
seeable future; whatever the
announcement, we are likely to
see rapid Swissie liquidation and
higher volatility across all pairs
as speculators stampede for
positions. Alpari (UK) offers
euro-Swiss at SFr1.1253-
SFr1.1256
With Junes UK jobless claims
coming in weaker than expected,
investors concerns are beginning
to rise that the British economy
is slackening. So the fact that
today we have not one, but two
economics game changers being
released from the UK means that
traders eyes (and trigger fin-
gers) will be set on the sterling-
dollar pair. Capital Spreads
quotes a price of $1.6392-
$1.6394
Craig Drake
THE
TIPSTER
STERLING
LIMITS
FOREX ANALYST PICKS
FOREX STRATEGIST
JOEL KRUGER
My pick: Sell Australian dollar-US dollar at $1.0650
Expertise: Technical analysis
Average time frame of trades: One week to six months
FOREX STRATEGIST
ILYA SPIVAK
My pick: Stay short euro-dollar
Expertise: Global macro
Average time frame of trades: One week to six months
I sold euro-dollar three weeks ago at $1.4328, expecting escalation in
the EU debt crisis to be compounded by a downward revision in
investors expectations of global economic growth, setting off risk
aversion and driving the US dollar higher on safe-haven demand.
While I didnt foresee the degree of volatility that ensued, the trajec-
tory seems to be working and I remain short, targeting a close below
$1.3975. A stop-loss will be triggered on a daily close above $1.4535.
The pair is retracing a major drop off from post-float record highs at $1.1080.
The greater risk now is for gains towards a major confluence of resistance in
the mid-$1.0600s, from the 20/50/100-day simple moving averages and the
61.8 per cent Fibonacci retracement off the $1.1080-$0.9925 move. However,
gains beyond $1.0650 should be hard to come by. Our strategy is to look to
sell on a rally up towards $1.0650 in anticipation of a major lower top below
$1.1080. Strategy: sell $1.0650 for $0.9650 objective; stop-loss at $1.1150.
FOREX STRATEGIST
JOHN KICKLIGHTER
My pick: Long dollar-yen and sterling-Swissie; short Aussie-kiwi
Expertise: Fundamental/technical analysis with risk management
Average time frame of trades: One day to one week
Risk aversion was strong in the past few weeks, although euro-dollar did-
nt participate, given the shared troubles of both economies. Conditions
have settled in the past few active trading days but underlying volatility is
still exceptionally high. Im watching for breakout scenarios: dollar-yen
may finally break 77.10; look to go long above 77.25. Aussie-kiwi is at
the top of its descending channel at NZ$1.2625: short from NZ$1.2625.
Sterling-Swissie is weighing the SFr1.30 level; long above SFr1.3050.
hits for the equities markets, this measure
would also have long term ramifications, as
the tax distorts the real world information
conveyed by the price system. In some
cases, a Tobin tax can increase the size of
asset bubbles, if the assets are illiquid, by
forcing traders to make larger and fewer
individual transactions, says Sam Bowman
of the Adam Smith Institute. Trying to
blind markets to reality wont change the
fundamental reality that the Eurozone is
broken and cant be fixed, and might even
make things worse.
Though this will not have an immediate
effect on currency markets, any volatility
could see a recurrence of the trend for
investor flight into the safe havens of the
Swiss franc as well as gold as a de facto
haven currency.
Plans were only sketched out in yesterdays
announcement, with little in the way of con-
crete plans as to how these would be imple-
mented, according to Kathleen Brooks,
research director for Forex.com: The only
thing that we do know is that Sarkozy and
Merkel arent willing to ditch the Eurozone
and let the peripheral nations drown just yet.
19 CITYA.M. 17 AUGUST 2011
Sarkozy and
Merkel arent
prepared to ditch
the Eurozone
Lifestyle | Motors
20 CITYA.M. 17 AUGUST 2011
WORDS BY
RYAN BORROFF
and-a-half-hours then these figures are
effectively zero. Just the price of electricity
to pay.
For now the Fisker Karma will only be
available in left-hand-drive versions but
its a small compromise for such an inno-
vative car. If you in any way care about the
environment but also love motoring then
this could be the car for you.
LEAST STOLEN CAR
Its something of an iconic design and has legions of fans, yet
according to a report in the Guardian newspaper, Fords Ka city car
is the least stolen car in the UK. Data was analysed by insurance
comparison website Confused.com, who found that the Ka was
seen by car thieves as being underpowered, cheap and with no
street cred.
CAR TALK BY RYAN BORROFF
AUDIS URBAN CONCEPT
This two-seater concept car called the Audi Urban Concept is an
idea to help solve future congestion problems. The ultra-light elec-
tric car, which will be shown at Frankfurt, is made from carbon
fibre-reinforced polymer (CFRP) and has an unusual layout of 1+1
seats; which are staggered. Unusually, entry to the car is through
the tailgate at the rear!
PRIUS PLUG-IN
Toyota is introducing a plug-in version of its Prius hybrid electric
car at the Frankfurt Motor Show in September. The Prius Plug-in
Hybrid Electric Vehicle (PHEV) has an extended EV (electric power
only) range of up to 12.5 miles and can achieve 128 mpg and
has CO2 emissions of just 49g/km, almost half that of the standard
Prius.
Eco-warrior pipe dream gets real
Greenest, nicest,
fastest.
L
EONARDO DiCaprio has one. In fact,
diCaprio has the first production
Fisker Karma plug-in hybrid sports
car ever built. And he paid for it.
That one of the worlds biggest film stars
is driving the worlds most eco-friendly
sports car is perhaps not so surprising. But
the man that built it is car designer Henrik
Fisker author of the BMW Z8 and Aston
Martin Vantage sports cars who also hap-
pened to raise a billion dollars or so in
investment for the company that bears his
name, Fisker Automotive. Thats the big
news, right there. Almost nobody who
tries to start their own series production
car company succeeds. This is because it is
even more difficult to do than it is expen-
sive and its fantastically expensive.
Fisker Automotive will build 300 of its
luxurious Karma electric sports cars every
week when production is fully underway.
For now Im driving one of the first models
ever built on road (and track) in Milan. If
Leo has his then this is number two of
three. Its one of the most interesting cars
Ive driven.
It certainly looks the part. The Karma is
a very luxurious four-door sports car
indeed. Long, wide and low, the Karma is
athletic and elegant. Its length at almost
five metres is dictated by the lithium-ion
battery pack which gives the car its long
spine. Then there are those 22-inch alloy
wheels. No car in history has gone to pro-
duction with 22-inch wheels and the
effect is stunning.
Inside the Fisker Karma knocks most
other luxury brands sideways. Its more
sumptuous than any competitor at its
80k price. Leather, wood and Alcantara
suede combine with the most advanced
touchscreen in-car control system Ive
seen. The combination of materials, up-to-
the-minute tech, futuristic controls and
highly individual and contemporary
styling adds up to a cabin that is utterly
unique.
On the road, around the streets of
Milan, the car is impressive. You have the
option to drive the car in Stealth or Sport
mode. In Stealth mode the car can travel
using electric only for up to 50 miles. Here
the Karmas twin electric motors which
No recent car series
has launched with a
story like this one. Oh
and its a super drive
THE VERDICT:
DESIGN hhhhi
PERFORMANCE hhhhi
PRACTICALITY hhhhi
VALUE FOR MONEY hhhhi
THE FACTS: FISKER KARMA
PLUG-IN HYBRID SPORTS CAR
PRICE: 80,000
0-62MPH: 5.9secs
TOP SPEED: 125mph
CO2 G/KM: 83g/km
MPG COMBINED: 118mpg
produce 403bhp drive the rear wheels.
This is where the Karma is at its best:
accelerating in Stealth mode is smooth, as
there are no gears, and is really exciting.
Youre driving in near silence, the only
noise is a sound effect broadcast through
rear bumper speakers (they look like
chrome exhaust pipes); a sound which
Fisker calls Tron. With so little road and
wind noise the experience is about as
stress-free as driving will ever get.
By switching into Sport mode via a
paddle behind the steering wheel the
Karmas 2-litre, four-cylinder, turbo-
charged range-extending petrol engine
kicks in to charge the batteries, increase
acceleration and enhance the vehicles
range, by up to 250 additional miles. Here
is the only compromise. You need to adapt
the manner in which you drive to get the
best out of the Karma because under
heavy acceleration it makes a quite dis-
agreeable noise as the petrol engine cuts
in to charge the batteries. Best to acceler-
ate up to speed in Stealth mode before
motorway cruising, then the engine will
charge the batteries in the background.
Fisker Automotive claims acceleration
of 7.9 seconds in Stealth (electric-only)
mode and just 5.9 seconds in Sport mode.
Top speed is electronically limited to
125mph and 118mpg (combined) with CO2
emissions of 83g/km is possible. Of course
if you only ever use the car for commuting
in Stealth mode and charge the electric
motor at home or work which takes five-
T
E
R
R
E
S
T
R
I
A
L
WHO DO YOU THINK YOU ARE?
BBC1, 9PM
JK Rowling investigates her mothers
French ancestry, learning about her
great-grandfather, who was awarded
the prestigious Legion dhonneur for
his actions in the First World War.
LEWIS
ITV1, 8PM
The death of Oxford don RG Cole leads
to the shady underworld of unlicensed
boxing and the involvement of
academic Richard Helm.
HOLLYOAKS
CHANNEL4, 6.30PM
Bart and Jason are cornered by a
farmer wielding a gun. Ste gives
Brendan an ultimatum and Theresa
and Liberty get their exam results.
BBC1
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4.30pmLive ECB 40 League
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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
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separate block.
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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 Strangle (5)
4 Muscular spasm (5)
7 Form of address
to a man (3)
8 Accumulate (5)
10 Dashed (3)
11 Feline animals (4)
12 Very frightening (5)
14 Time of life between the
ages of 13 and 19 (5)
17 Sun-dried brick (5)
20 Land along the edge of
a body of water (5)
22 Slope or hillside
in Scotland (4)
23 Tit for ___, getting
even (3)
24 Turbulent or highly
emotional episode (5)
26 Nought (3)
27 Convey (5)
28 Mountain call (5)
DOWN
1 Pandemonium (5)
2 Egg cells (3)
3 Literary composition (5)
4 Peak (5)
5 Acquiesce (5)
6 Gasps for breath (5)
9 Scour vigorously (5)
13 Morally reprehensible
person (3)
15 Gas formerly used as
an anaesthetic (5)
16 Not either (3)
17 Member of a Mexican
tribe overthrown by
Cortes in 1519 (5)
18 Located externally (5)
19 Hard, black wood used
in cabinetwork (5)
20 In an unfortunate or
deplorable manner (5)
21 Electronic message (5)
25 Put in (3)
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S C O U T W A G E S
P C H M L
I T A L I C O K R A
N R S H I N T
A C I D A L G A E
L N A S K I R
B A S I S U R G E
P A R I D F C
O P A L S A F A R I
S A D R P
Y A R D S O B E S E
9 7 2 9 3 7
1 3 5 7 8 4 6 9 2
2 1 4 6 3 6 1
4 1 9 7 7 8 9
9 5 8 6 2 1 4 3
7 8 6 3
3 2 5 1 3 2 1 8
8 6 9 8 4 3 9
9 5 6 9 7 8 5
6 3 9 8 7 5 1 4 2
1 2 3 1 2 6
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
SHEEPSKIN
Lifestyle | TV&Games
21 CITYA.M. 17 AUGUST 2011
Sport
22
I was seduced by Daley Thompson
CITY A.M. READERS TAKE ON A TRIATHLON:
WHAT OUR TEAM LAUREUS RECRUITS SAID

LAURA RAWSTRON | CITIGROUP

Its a daunting experience to reflect on. It really seems a great antidote
to a world of such turbulent markets; what with the feelings of dignity, self-
esteem, discipline and, of course, meeting some like-minded friends, its somehow
enriching.

ROBERT AKESTER | TOUCHBASE UNIFIED COMMUNICATIONS

The chance to race in the heart of London was too big a draw to give
up. Plus, having done a triathlon once before, I was really keen on having a go at
Olympic distance for the first time. I particularly enjoyed the cycling part. Actually,
I somehow managed to complete an extra lap of the cycling course!

EDUARD EGELIE | ROYAL BANK OF SCOTLAND

It was really good to race past Buckingham Palace, but it was the
crowd that really stuck out for me. London is a really superb city for support.
Laureus is a terrific initiative. The main thing is just to keep calm. And if anything
solid gets in your mouth during the swim be sure to spit it out.

I
N HINDSIGHT, its fair to say I
lacked some of the key tools for
the job when I signed up to do a
triathlon on behalf of City A.M.
and sports charity Laureus.
I didnt own a bike and hadnt for
more than a decade. Id never swum
more than a handful of lengths in
one go, and even then I flapped about
like an asthmatic otter. OK I could
run a bit, but never did because lazi-
ness and sheer boredom got the bet-
ter of me. Really, what was I thinking?
In my defence I was seduced by
Daley Thompson. Or the fact that I
and the 20 City A.M. readers who also
joined Team Laureus would get two
training sessions with the decathlon
deity. I was also sucked in by the
chance to sample the official London
2012 triathlon course in Hyde Park
and The Serpentine a year before the
real athletes. Plus it was in aid of a
very good cause. And Id feel like a
hero crossing the line in my very
own Chariots of Fire moment.
But with three weeks to go,
panic set in. I was lethargic and
unfit from a lazy beach holiday,
which followed a boozy weekend
at Glastonbury. I bet Daley
never did that before an
Olympics.
Swimming was my
weak point doing
800m in the
Serpentine seemed
like climbing
Everest compared to
the 22km bike stint
and 5km run so I took
lessons at my local pool.
My confidence didnt
exactly surge when the
instructor, a blunt Eastern European,
visibly grimaced when I told her the
scale of the task Id undertaken.
Yet cometh the hour and all that. A
training blitz in those final weeks
honed my swimming and fitness
enough to get in a dry run the
weekend before. Boosted from
that, I went into the big day
last weeks London leg of the
ITU World Championship
without fear and hit my target
time of around 1hr 45mins.
I felt elated, relieved,
proud, exhausted, like a
Lycra-clad colossus in
my Laureus Tri-Suit
(left). Endorphins do
funny things to you.
My only regret
was being busy for
both of the training
sessions with Daley.
But it might just be the best
reason to do it again next year.
For info visit www.laureus.com
Frank Dalleres on
conquering the
London Triathlon
ENGLAND manager Martin Johnson
is refusing to panic at his teams
apparent sudden regression, having
had time to digest Saturdays defeat
in Wales.
Johnsons men went into their
penultimate World Cup warm-up
with a measure of confidence, having
won the RBS Six Nations during a 12-
month spell of major improvements.
But despite dominating possession
and territory at the Millennium
Stadium they failed to score a try and
had to swallow a morale-denting 19-9
reverse.
We were disappointed and frus-
trated on Saturday, but this team has
won a Six Nations Championship and
it has won a Test in the southern
hemisphere, said Johnson.
We know there are areas we can
get better at but we are not going to
throw out all the good things we have
done. There is a lot we can be better
at and Dublin is another chance to
get things right.
Johnson is on holiday this week as
he prepares to finalise his 30-man
World Cup squad on Monday, before
a final preparatory match against
Ireland on Saturday week.
Johnson: No
panic over
Wales loss
ARSENAL manager Arsene Wenger
clashed with Uefa chiefs during last
nights Champions League play-off
win after appearing to communicate
with his bench while serving a touch-
line ban.
Wenger, who watched Theo
Walcott earn a slender first-leg lead
from the directors box, was shown
on television giving orders to coach
Boro Primorac, who was in telephone
contact with the dugout.
It is understood the Gunners
believed Wenger had been given the
all-clear to communicate indirectly
with assistant Pat Rice, following a
meeting with the European govern-
ing body on Monday.
But Uefa delegates approached
Arsenal officials at half-time and told
them Wenger had to stop and the
Frenchman could now find himself
facing further punishment before
next weeks return leg.
Wenger, who is battling the most
difficult few months of his 15-year
reign, then chose not to attend his
post-match media obligations in
what will be seen as a protest against
his treatment by Uefa, which could
cost him or the club a fine.
The row took fur-
ther shine from a night
in which the Gunners
took a tentative step
towards the Champions League
group stages, and a consequent 25m
windfall, but lost defenders Kieran
Gibbs and Johan Djourou to ham-
string injuries.
Both have joined a growing list of
players likely to miss Saturdays visit
of Liverpool the last thing Wenger
needed after finally losing Cesc
Fabregas and seeing Samir Nasri edge
ever-closer to the exit.
Those clouds briefly cleared, how-
ever, on four minutes when Walcott
opened the scoring with a neat side-
foot volley at the near post from
Aaron Ramseys delicate cross.
That was as good as it got, however,
and Arsenal spent much of the rest of
the night being overrun in midfield,
losing players to injury and repeated-
ly denying Udinese danger man
Antonio Di Natale.
Goalkeeper Wojciech Szczesny
marginally outshone centre-back
Thomas Vermaelen with three cru-
cial saves, including one outstand-
ing first-half tip onto the bar from
Di Natales wickedly curling free-
kick, while Djourou and Song both
made crucial blocks to deny the
Italians almost certain goals.
It took until stoppage time for
Arsenal to threaten again, but
Udinese goalkeeper Samir
Handanovics lightning reflexes
denied Walcott after Gervinhos mes-
merising cross-field dribble.
BY FRANK DALLERES
RUGBY UNION

Johnson wont overreact to Englands

World Cup setback. Pic: ACTION IMAGES
BY FRANK DALLERES AT EMIRATES STADIUM
FOOTBALL

1
0
ARSENAL
UDINESE
Walcotts goal was watched by Wenger (inset, with Primorac) from the directors box.
Wenger Uefa
row taints
welcome lift
for Arsenal
Ascot Racecourse, Saturday 15th October 2011
britishchampionsseries.com - 0870 727 1234
23
SPORT | IN BRIEF
Dyer hands QPR fitness boost
FOOTBALL: QPR insist injury-plagued
Kieron Dyer will train again in days
rather than weeks. Dyer, 32, lasted just
five minutes of his debut against Bolton
onn Saturday.
OBriens son targets milestone
RACING: Top trainer Aidan OBriens
son Joseph is being tipped to land his
first Group One winner today when he
rides Await The Dawn in the
Juddmonte International Stakes at
York. But he faces competition from
two Prince Khalid Abdullah-owned
horses in Midday and Twice Over.
No8 Jones to captain Wales
RUGBY UNION: Wales have handed the
captains armband to No8 Ryan Jones
for this weekends final World Cup
warm-up match against Argentina.
Regular skipper Matthew Rees is out of
the tournament with a neck problem
while current stand-in Sam Warburton
is being rested against the Pumas.
Results
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email sport@cityam.com
Swann: Nullifying Tendulkar
and Co beats No1 ranking
SPINNER Graeme Swann insists
Englands consistency in nullifying
Indias stellar batting line-up is their
greatest achievement in a series they
will look to round off in winning
style tomorrow at The Oval.
Not for Swann the obvious glory of
dethroning the tourists as the worlds
No1 Test nation, or even the batting
heroics of Kevin Pietersen and
Alastair Cook, who both made double
centuries.
Instead the Nottinghamshire
twirler believes the best mark of their
excellence has been their refusal to
allow Sachin Tendulkar and Co to
breach the 300-mark in any of their
six innings at Lords, Trent Bridge
and Edgbaston.
I think the best thing weve done
all series is keep India down below
300 every time weve bowled. Going
into this series, not many people
would have given us a good chance of
doing that, said Swann.
We need to try and keep that up
as well, we know the Oval is going to
be a good batting pitch it always is
but if we maintain the standards
weve already achieved, hopefully we
can do that again.
Key to Englands potency, and 3-0
lead, has been James Anderson, who
has taken 18 Indian wickets, but the
fast-bowler looks set to miss tomor-
rows action not that Swann is in
any mood to accept excuses.
We said before the series that it
wouldnt matter if we got to No1 in
the world, its finishing off the series
that is the most important thing.
Come Thursday, that is what well be
looking to do at the Oval, he said.
I know Andy Flower and Andrew
Strauss wont be letting us rest on our
laurels and glide through this game.
They will be keener than ever that we
put in a 100 per cent performance.
Andersons unavailability would
open the door for paceman Graham
Onions, a late addition to the squad,
to make his first Test appearance for a
year and a half. Englands options are
further reduced by the ongoing
absence of Chris Tremlett.
MANCHESTER CITY have been
warned their controversial 400m
sponsorship deal with Etihad is to be
scrutinised by European chiefs Uefa.
Eyebrows were raised when Abu
Dhabi-owned City announced the
lucrative deal, which covers shirt
branding and stadium naming rights,
with the United Arab Emirates
national carrier last month.
Critics believe it is above market
value and therefore could allow City
to circumvent Uefas tough new
Financial Fair Play rules, although
the club have disputed the reported
400m price.
The chairman of Uefas Financial
Control Panel Jean-Luc Dehaene said:
If we see clubs that are looking for
loopholes we will act. It is not enough
to say weve got a sponsorship con-
tract and thats OK if the contract is
out of line.
Admitting he had some ques-
tions when he heard of Citys Etihad
deal, Dehaene added: You know
where the problems are and you
know you will have to confirm them.
But it would be dangerous if we take
judgements without facts.
MAN UTD SINGAPORE FLOAT: P6
BUSINESS OF SPORT

Euro money chiefs to probe Man City

BY FRANK DALLERES
CRICKET

Swann and England are looking to wrap up a 4-0 series whitewash. Picture: GETTY
Bitter and angry
Nasri fires parting
shot at fans as he
nears 22m move
ARSENAL star Samir Nasri has
revealed his anger and bitterness at
his treatment by fans and admitted he
is on the brink of completing a 22m
move to Manchester City.
Nasri, who on Monday used Twitter
to criticise disrespectful supporters
for singing derisory chants about him
at Newcastle at the weekend, yester-
day used his Facebook account to reit-
erate his distaste.
I was very disappointed by the
supporters at the match on Saturday. I
am still an Arsenal player but Im sure-
ly going to leave, this is almost cer-
tain, he wrote.
But unfortunately I will leave with
bitterness and anger in my heart. I am
proud for having played with the
Gunners for three years and Ill see
you soon on the fields of the Premier
League.
The France midfielder has angered
Arsenal fans by refusing to renew his
contract, leading some to accuse him
of greed and disloyalty.
Nasris stance risks damaging his
standing further as he nears a depar-
ture that has drawn comparisons with
Ashley Coles move to Chelsea in 2006.
His move is expected to go through
before the weekend, depriving Arsenal
of another player when they are
already short for Saturdays fixture
against Liverpool at Emirates Stadium.
Captain Cesc Fabregas has returned
to boyhood club Barcelona, Emmanuel
Eboue yesterday joined Galatasaray
for an initial 3m, while Carlos Vela
and youngster Pedro Botelho have
both made loan moves to Spain.
Injury looks certain to rule out mid-
fielder Jack Wilshere, while defenders
Kieran Gibbs, Johan Djourou, and
Armand Traore also have fitness wor-
ries following this weeks games.
Forward Gervinhos three-match
ban has been upheld, meanwhile, and
Alex Song looks likely to receive the
same punishment this week.
Pictures: PA