Labour Turns Back On City: Why Miliband Has It Wrong On Private Equity

EUROZONE ministers yesterday slammed
Brussels for pushing the idea that the

regions bailout fund should be allowed to
borrow money to lend trillions of euros to
highly indebted countries.
Wolfgang Schuble, finance minister for
euro paymaster Germany, declared: I dont
really understand how anyone in Brussels
can raise such a silly idea without under-
standing the construction of the [bailout
fund]. Spanish finance minister Elena
Salgado added: That is not on the table.
The European Commission had suggested
that the Eurozone bailout fund, the
European Financial Stability Facility (EFSF),
should leverage its capital to boost its ability
to rescue banks and sovereigns. But ministers
think that doing so would affect the credit
ratings of member states that underwrite it.
The diverging views of euro states and the
Brussels governing apparatus sets the stage
for a pitched battle over the fate of the single
currency.
A European Commission spokesperson
repeated yesterday that the leverage idea is
being considered. He told City A.M.: The idea
has not been formally launched but informal-
ly the idea is circulating. People are contem-
plating it. He said that it is currently outside
the treaties, meaning that Eurozone nations
would have to renegotiate EU law in order to
allow the EFSF to borrow money.
But City A.M. understands that the
European Commission, which would preside
over discussions, believes it can persuade
member states and takes ministers current
positions with a grain of salt since they have
changed their minds so often in the past.
There were also suggestions yesterday that
Greeces second bailout could be renegotiat-
ed so that private bondholders take more of a
hit. EUROZONE: P4-5
BUSINESS WITH PERSONALITY
www.cityam.com Issue 1,477 Wednesday 28 September 2011 FREE
FTSE 100 5,294.05 +204.68 DOW 11,190.69 +146.83 NASDAQ 2,546.83 +30.14 /$ 1.56 unc / 1.20 unc /$ 1.36 +0.01
ED Miliband yesterday sounded the death
knell on his partys relationship with the
City, singling out some elements of British
business for praise yet promising to crack
down on supposedly predatory financial
services.
Britains future will be built not on credit
default swaps but on creative industries,
Miliband said in his speech to the Labour
conference in Liverpool. Not low wages and
high finance, but low carbon and high tech
and not financial engineering, but real engi-
neering.
The Labour leader said voters living stan-
dards had been squeezed by runaway
rewards at the top and took aim at tele-
phone number salaries at the banks.
Under former Prime Ministers Tony Blair
and Gordon Brown, Labour did not do
enough to change the values of our econo-
my, Miliband said.
He argued that some companies were
producers, but others such as asset strip-
ping private equity houses were preda-
tors.
The Labour leader drew on high profile
business figures to explain his distinction
between the good and bad.
But he dropped a clanger by contrasting
banking pantomime villain Sir Fred
Goodwin with Sir John Rose without men-
tioning that the former Rolls Royce boss last
week became a banker by joining Rothschild.
Fred Goodwin was at the heart of the
banking crisis -- compare him to Sir John
Rose... a great British business leader. He is
the true face of British business, Miliband
said.
But at the time of the financial crisis,
Fred Goodwin was paid over three times
more than Sir John Rose.
Laying the blame for the collapse of care
home Southern Cross at the feet of private
equity firm Blackstone, Miliband hinted that
predators should be subject to higher taxes
and tougher regulations than other firms.
Look at what a private equity firm did to
the Southern Cross care homes, he said.
LABOUR TURNS
BACK ON CITY
BY JULIAN HARRIS
UK POLITICS
Stripping assets for a quick buck and treat-

ing tens of thousands of elderly people like
commodities. They may not have sold their
own grandmothers for a fast buck -- but they
certainly sold yours.
Business groups were sceptical following
the speech. We would like to know how Ed
Miliband plans to identify and reward good
companies over bad ones, asked Miles
Templeman of the Institute of Directors.
Consumers and investors are better
equipped and better informed than ever to
impose discipline on firms than any govern-
ment, Templeman added.
And the Federation of Small Businesses hit
out at Milibands pledge that he would only
grant government contracts to firms with
sufficient apprenticeship programmes.
We are disappointed that the Labour
leader does not understand how jobs and
apprenticeships are created in the real
world, said FSB chairman John Walker.
Miliband also said that government should
favour British companies when doling out
state contracts. When I am Prime Minister --
how we tax, what government buys, how we
regulate, what we celebrate will be in the
service of Britains producers.
ALLISTER HEATH: P2
MORE FROM LABOUR CONFERENCE: P6-7
MINISTERS ROUND ON BAILOUT PLAN
BY JULIET SAMUEL
EUROZONE
Labour leader Ed
Miliband used his
conference speech to
lambast several
aspects of the Square
Mile Picture:PA
Certified Distribution
01/08/11 till 28/08/11 is 92,745
WHY MILIBAND
HAS IT WRONG
ON PRIVATE
EQUITY
LUKE JOHNSON
IN THE FORUM
PAGE 23
News
2 CITYA.M. 28 SEPTEMBER 2011
ABI lays out
new pay rules
HUGE executive salaries and bonuses
threaten the reputation and efficient
working of UK companies, an influen-
tial shareholder group has warned
today.
The Association of British Insurers
has issued strongly-worded new
guidelines for listed company boards,
warning them to avoid ratcheting up
salaries and stop paying for failure.
The ABI, which represents life
insurers and pension fund managers,
said its members were worried about
the growing levels of executive pay.
Quantum of remuneration is a
matter of concern to shareholders.
Levels of pay that do not reflect cor-
porate performance undermine the
ability to reward success and repre-
sents excess rent extractions, it says
in the new guidance. Shareholders
are likely to object to levels of pay
that do not respect the core princi-
ples of paying no more than is neces-
sary and a linkage to sustainable
long-term value creation.
Sean OHare, a PwC remuneration
partner, said the rules called on
boards to use more discretion to
adjust pay based on performance.
This makes particular sense given
the current economic environment,
as in some cases the formulaic out-
comes of pay plans may no longer be
appropriate, he said.
BY ALISON LOCK
FUND MANAGEMENT
Liberalism is left for dead by Labour

YOUVE probably never heard of Ivan
Lewis, a rather obscure Labour politi-
cian. But yesterday Lewis, the shadow
culture secretary, unveiled an astonish-
ingly sinister proposal which threatens
free speech and media plurality in the
UK like never before: he called for a
register of journalists, with anybody
deemed not fit struck off and banned.
Of course, elements of the British
media have behaved very badly and
there are lots of things wrong with the
industry. Criminals should be prose-
cuted; bad practices should be rooted
out. Media outlets should do their best
to be accurate and correct themselves
if it turns out they got it wrong.
But journalism is a trade, not a pro-
fession; the idea that its practitioners
should be licensed, that it should be a
closed shop that only people who have
passed a test can enter; and that a
politically created quango can deter-
mine who is right and who is
wrong and should therefore be
banned is appalling and dangerous. It
is a sure route to eliminating free
speech and ensuring that only
approved views can be aired.
These days, there is a continuum
between a lone tweeter or blogger with
a dozen followers to a star broadcaster
who speaks to 10m people every day.
One cannot arbitrarily draw a line
between journalism and non-journal-
ism any more. All should be protected
by free speech; all should be held
responsible for what they write or say.
It is amazing how illiberal the
Labour party has become. The journal-
ist licensing idea comes as Ed Miliband
claimed yesterday that he or someone
in authority would be able to make a
distinction between a good and a
bad business, a producer and
predator. But what is his definition
of asset stripping? How can a politician
know what kind of assets should be
held together within a business and
which should be separated? What is a
fast buck and when is money or
wealth built up slowly enough to qual-
ify as morally acceptable?
For every failure of private equity,
there are numerous case studies that
have ended up as job-creating turn-
around stories. Private equity is proba-
bly a superior system than listed firms
because management incentives are
aligned with those of owners.
Liberalism is dead in the Labour
party: it believes in telling people who
can and cannot be journalists, what is
and what isnt morally acceptable, and
levying arbitrary double and triple-
taxes on people it doesnt like.
Unfortunately, it has also lost touch
with economic reality. The only good
businesses Miliband mentioned were
real engineering companies and
those who train, invest, invent, sell
(anybody knows a single firm that
doesnt do at least two or three of
these?). The only good companies he
mentioned by name were Bombardier
and BAE Systems; the only business
leader he name-checked was Sir John
Rose, ex boss of Rolls-Royce. All three
are long-established, manufacturers
and sell lots to governments; I have
nothing against them but it says a lot
about Milibands priorities. What
about the dominant services sector?
And arent all firms that follow the
law, create jobs and thus fund HMRC
good? The only other firms he likes
are small businesses who cant get a
loan (what about those that can?).
Labour has abandoned Blairism and
is once again a party of the old left.
Miliband has no credible plan whatso-
ever to boost the UKs growth and com-
petitiveness. How incredibly
depressing.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
GOLDMAN Sachs could raise its cost-
cutting drive by $250m (159.9m) to
$1.45bn by the end of the year.
Americas largest investment bank
is expected to raise the $1.2bn level of
savings, equivalent to around 1,000
jobs, announced by managers in July.
Industry conditions have worsened
since then with revenues under pres-
sure from market volatility.
Goldman declined to comment last
night but it is understood that full
details of the cuts, and the impact on
London, have not yet been finalised.
Goldman is expected to use its third-
quarter earnings statement on
October 18 to explain its plans.
The banks 35,700 employees
received $15.4bn in compensation
and benefits last year or about
$430,700 per person one of the
highest rates on Wall Street.
Goldman staff have been bracing
themselves for pay cuts as well as
redundancies.
BY PETER EDWARDS
BANKING
Goldman set to wield axe

Lloyd Blankfein, chief executive, is preparing further cost cuts at Goldman Sachs
NEWS | IN BRIEF
Senate passes new funding law
The US House of Representatives is
expected to endorse a short-term fund-
ing bill tomorrow to avert a government
shutdown, a top Republican aide said, as
members of both parties drew fire for
creating another high-stakes political
drama. The Senate yesterday passed the
resolution funding the government until
18 November, ending a stalemate over
emergency relief funding that echoed
last months debt ceiling debacle. Weve
averted a disaster, until the next one,
said Democratic senator Ben Nelson.
Some Madoff claims thrown out
A US judge yesterday narrowed a $1bn
lawsuit against owners of the New York
Mets baseball team by the trustee seek-
ing money for victims of Bernard
Madoff's epic fraud. Manhattan District
Judge Jed Rakoff dismissed nine of 11
counts raised in trustee Irving Picards
373-page complaint against the Mets
owners. But he said the trustee cold still
pursue $300m (191m) of fictitious
profits without having to prove the
owners willfully blinded themselves to
Madoffs fraud. The further $700m
claim would need such proof, he said.
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editors
Code of Practice, a copy of which can be found at
www.pcc.org.uk
Printed by Newsfax International,
BeamReach 5 Business Park,
Marsh Way, Rainham, Essex, RM13 8RS
Distribution helpline
If you have any comments about the distribution
of City A.M. Please ring 0207 015 1230, or email
distribution@cityam.com
ABI director-general
Otto Thoresen says its
members are worried
about executive pay
4th Floor, 33 Queen Street, London, EC4R 1BR
Tel: 020 3201 8900 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Jo Simpson
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
ANADARKO SOUNDS OUT BRAZILIAN
BUYERS
Anadarko Petroleum has asked advis-
ers to sound out potential buyers for a
collection of its Brazilian oil assets in
a deal that could be worth up to
$5bn, in the latest attempt by oil and
gas explorers in the region to attract
investment. The US independent oil
and gas explorer has instructed
bankers including Citigroup, Morgan
Stanley and Scotia Waterous to find
buyers for a portfolio of oilfields,
which could be valued at $3bn-$5bn.
NESTLE SUPRISES WITH CFO CHOICE
Nestl, the worlds biggest food group
by sales, surprised markets yesterday
by opting for a relatively unknown
outsider to take charge of its finances.
Wan Ling Martello, a Walmart execu-
tive vice-president, will replace Jim
Singh, 65, as chief financial officer of
the Swiss-based group from April 1.
VIRGIN IN CLOUD OFFER TO FIRMS
Virgin Media is launching its first
cloud-based services to business cus-
tomers as part of a drive to double
revenues from its enterprise division
in the next five years. Virgin said it
would shake up the cloud comput-
ing market with easy-to-use technolo-
gy and clear advice. The cloud itself is
in effect a service that can provide IT
systems such as storage, software and
processing from a remote place over a
network.
GOOGLE PLANS EAST LONDON TECH
CITY BASE
Google is to open a launchpad for
technology entrepreneurs in a multi-
million-pound boost for the govern-
ments East London Tech City
scheme. The investment in David
Camerons growth initiative comes
after Twitters decision to locate a
new office in Dublin raised fresh
questions over hopes that US technol-
ogy groups can help stimulate the UK
economy.
SALMOND WINS BUSINESS LEADERS
SUPPORT OVER CORPORATION TAX
Alex Salmond received a boost to his
campaign for Scotland to win control
over corporation tax yesterday when
several business figures agreed that a
lower tax rate north of the Border
would stimulate the Scottish econo-
my. But distillers criticised his wish to
also control excise duty as impracti-
cal, potentially damaging to the
whisky industry and probably illegal
under EU law.
FELIXSTOWE OPENS ITS DOORS TO THE
NEW GENERATION OF GIANTS
Britains pre-eminent port will open a
new deepwater terminal today capa-
ble of receiving the worlds biggest
vessels and increasing trade through
Felixstowe by 50 per cent. The open-
ing of these berths is essential, said
David Gledhill, the chief executive of
Hutchison Ports UK, the owner.
MARKS AND SPENCER HIT WITH 1M
ASBESTOS FINE
Marks and Spencer has been hit with
a 1m fine for failing to protect cus-
tomers, staff and workers from poten-
tial exposure to asbestos during
refurbishment at one of its stores. The
long-running case centred on a major
refurbishment of its Reading store in
2006.
OLYMPIC GAMES TO POSE A TOUGH
CHALLENGE FOR LOGISTICS FIRMS
London's catering industry faces
almost four months of disruption
next summer and has little time to
plan, one of the country's leading dis-
tributors has warned. Reynolds
Catering Supplies, which supplies
fresh produce to chains such as Pret a
Manger, Pizza Express and Carluccios,
said a lack of guidance about road clo-
sures during the the Olympics was
making planning ahead difficult.
NOKIA'S TROUBLES HIT SUPPLIER
Market struggles at Nokia Corp. have
had ripple effects among the compa-
nys major suppliers that could
reshape the global supply chain for
smartphones. The emerging crisis
among suppliers is one more sign of
how the continued consumer shift
from feature phones to smartphones
is upending more mature tech-indus-
try players and remaking the land-
scape beyond device makers.
SEC EYES RATINGS FROM S&P
US securities regulators are zeroing
in on the use by Standard & Poors of
fictitious dummy assets when it
assigned a triple-A credit rating to a
$1.6bn mortgage-bond deal that
imploded during the financial crisis,
according to a person familiar with
the matter. S&Ps parent company,
has received a so-called Wells notice
from the SEC.
WHAT THE OTHER PAPERS SAY THIS MORNING
INDUSTRIAL investor Melrose aban-
doned its bid to buy Charter
International yesterday after its share
price fell too low to make its offer for
the engineering group viable.
Melrose walked away from its
1.4bn takeover plan despite finish-
ing its due diligence on Charter and
saying it had the required debt fund-
ing ready to use.
Melrose announces it has complet-
ed due diligence and has agreed
terms with its financing banks.
However, in the current climate
Melrose is of the view it is not in its
shareholders best interests to pro-
ceed, it said in a statement.
Sources familiar with the situation
told City A.M. Melroses cash-and-share
offer was a casualty of the panic sell-
ing in stock markets since August,
which cut 18 per cent from Melroses
share price. Charters share price in
contrast stayed high thanks to the bid
talk, slashing the real value of
Melroses 850p offer to just 806p.
Melrose would have to see its
shares gain about 30 per cent before
an offer for Charter would become
affordable, the sources said, while
Melrose was reluctant to overpay.
They simply were not prepared to
raise the offer, particularly with the
economic turmoil we are seeing at
the moment, one said.
Charters board, which has recom-
mended a 910p cash and paper offer
from US rival Colfax, said it was
delighted its decision was vindicated.
The board of Charter have secured
very good value in difficult market
conditions. The board has at all times
acted in the interests of the whole
shareholder base. The board was
absolutely right to recommend the
offer from Colfax, a spokesman said.
ACCENTURE reported market-beating
quarterly results last night, and the
technology outsourcing and consult-
ing company forecast a strong 2012,
allaying fears of an industry-wide
slowdown triggered by a slowing US
economy and the debt crisis in
Europe.
The firm said while the global
economy has become more volatile,
increased regulations and the need to
adapt to globalisation will drive
spending for its services.
Our clients continue to take steps
to adjust to this new environment
and this continues to drive demand
for our services, chief executive
Pierre Nanterme said on a conference
call with analysts.
Ireland-based Accenture said its
new bookings -- a key indicator of
future sales -- of $8.4bn (5.37bn) in
the fourth quarter was the companys
highest quarterly bookings ever.
Quarterly earnings rose 37 per cent
on last year to $611.9m.
The visibility that we have right
now (on budgets) is very good based
on the first few months ..., chief
financial officer Pamela Craig said.
It forecast full-year revenue growth
of between seven and 10 per cent,
which implies a range of $27.3bn-
$28.05bn.
Accenture expects more growth
as firms adapt to new regulation
BY ALISON LOCK
INDUSTRY
PROFESSIONAL SERVICES
News
LSE chief executive Xavier Rolet hopes to buy the clearer Pic: Micha Theiner/CITY A.M.
Melrose quits
the bid race
for Charter
ANALYSIS l Charter International
p
21 Sep 22Sep 23Sep 26Sep 27Sep
890
870
850
868.00
27 Sept
THE LONDON Stock Exchange looked
set to win the bid for sought-after
clearing house LCH.Clearnet yester-
day after its rival bidder Markit admit-
ted it was out of the running.
Markit, a post-trade services special-
ist, said the LCH board had failed to
back its bid to buy the entire company
for a reported 15 (13) per share, a
decision that leaves the LSE the fore-
runner to buy a controlling stake.
We unfortunately did not receive
the LCH.Clearnet board support
required to move ahead and seek
shareholder support, Markit said.
A deal would be a significant coup
for LSE chief executive Xavier Rolet as
he seeks to diversify the exchange
and move on from the failed attempt
to merge with Canadas TMX Group.
Analysts said the deal made excel-
lent strategic sense but warned that it
was very hard to know what the right
price for LCH may be, leaving the LSE
at risk of overpaying.
The exchange has offered 21 per
share for 51 per cent of the equity in
LCH, the Financial Times reported.
But Berenberg Bank analyst
Richard Perrott said LCH shares had
traded hands for 10 at least the past
five years, far below the LSEs offer.
LSE and LCH remain in discussions.
LCH.Clearnet snubs Markit
to leave LSE in pole position
BY ALISON LOCK
CAPITAL MARKETS
THE Greek government managed to

persuade its members of parliament
to vote for further austerity measures
yesterday, a crucial step in securing its
next tranche of aid to avoid a default
next month.
All the ruling Socialist partys 154
MPs, plus one independent, voted to
impose a controversial new property
tax that aims to raise 2bn per year, in
what observers said was an encourag-
ing sign of party discipline in support
of the countrys aid programme.
But the vote prompted a fresh round
of unrest on Athens streets, with
reports of police and protestors
exchanging tear gas and stones in the
central Syntagma Square. Public sector
unions are due to stage two days of
strikes next month, meaning that
despite the vote, Greece could fail to
implement the measures.
Inspectors from Athens interna-
tional lenders the troika of the ECB,
the European Commission and the
IMF are due to return to Greece today
to resume their review of its finances
so as to pay out 8bn in October.
Across the continent, German MPs
delivered the opposite message for
chancellor Angela Merkels ruling
coalition. In a mock vote on changes to
the regions bailout fund a vote that
will be held for real tomorrow
Merkels ruling coalition suffered a
rebellion that would see her having to
rely on opposition votes to get the
changes through.
That would be a humiliating blow
for the German government, raising
the spectre of further political trouble
down the line.
The measures to be voted on tomor-
row will expand the bailout fund from
440bn to 780bn but contain no pro-
vision to let it borrow money a key
point of contention in Brussels.
BY JULIET SAMUEL
EUROZONE
RISING anxiety over the debt crisis

meant borrowing rates for Italy and
Spain hit their highest level since the
financial crisis yesterday.
Italy, which held its first govern-
ment debt auction since it was down-
graded by Standard & Poors last
week, was able to raise its target sum
of 14.5bn (12.6bn) but two-year
zero-coupon bond traded at 4.511 per
cent, up from 3.408 per cent last
month.
Spain sold 3.2bn of three and six
month bills, stopping short of its tar-
get of 3.5bn. It offered a yield of
1.692 per cent, on three-month bills,
up from the 1.357 per cent paid at the
last auction in August.
Peter Chatwell from Credit
Agricole said peripheral funding pres-
sures remained severe despite a slight
improvement in risk sentiment.
Debt crisis fears push up cost of
Italian and Spanish borrowing
EUROPEAN ECONOMY
CRDIT Agricole, Frances third-

biggest bank by market value, is
expected to follow bigger rivals BNP
Paribas and Socit Gnrale in
launching asset sales after the sharp
falls in their share prices in recent
weeks.
Retail-focused Crdit Agricole is a
different beast from BNP and SocGen.
It has already restructured its invest-
ment bank and cut high-risk activi-
ties after an overambitious expansion
in the years leading up to the 2008
crisis.
But analysts and sources familiar
with the bank say it is not immune to
the lethal cocktail of higher dollar
funding costs and heightened fears
over a Greek default that have
spurred on banks to speed up asset
sales.
Separately, an executive at the
bank said it was planning to close
down its Middle East North Africa
(MENA) mergers and acquisitions
business in Dubai and move the oper-
ations back to its Paris office.
Majority owned by a network of
retail banking cooperatives with
strong roots in French agriculture,
Crdit Agricole has seen its share
price slump by 52 per cent since the
end of June as the euro debt crisis has
worsened and thrown a spotlight on
the French banks overstretched bal-
ance sheets.
Crdit Agricole may follow its
peers in launching asset sale
BY HARRY BANKS
BANKING
News
Greeks vote
for taxes but
Germans rebel
SWFs
Bond investors, most likely
non-European sovereign
wealth funds from China
or the Middle East
EFSF
The European Financial
Stability Facility, the
euros bailout fund
ECB
The European
Central
Bank
EIB
The European Investment
Bank, backed by all 27 EU
member states
GREECE
Under this scenario, Greece would default
in an orderly way, imposing
harsh haircuts on banks hold-
ing its bonds, some of which
would then need the rescue
outlined in the diagram. If
Athens still required funds,
they would likely come
from the new euro bailout
fund to be set up in 2013.
CONVERTING JUNK INTO TRIPLE-A: HOW A EURO RESCUE PLAN
CASH
UNDER one of the bailout plans for
Eurozone banks mooted yesterday, res-
cue funds from member states would
be leveraged through the regions
bailout fund and the European
Investment Bank (EIB). The EIB denied
that it has been asked to involve itself:
doing so would be a political hot pota-
to because it would put the EIBs guar-
antors non-euro states like the UK
on the hook for losses. Other forms of
this plan would operate similarly,
however, with the ECB taking the role
of investors lending to the special pur-
pose vehicle (SPV) and the EIB cut out
of the loop. This would keep non-euro
states out of the equation but is likely
to encounter fierce ECB opposition.
THE European Central Bank (ECB) will
probably resist growing calls for it to
slash interest rates next week,
although a stalled Eurozone economy
will force the bank to cut them early
next year, according to an influential
poll of economists.
The escalating debt crisis and new
signs that the economy has taken a
turn for the worse has prompted some
major banks including JPMorgan,
RBS and Credit Agricole to make
high-profile predictions for a rate cut
next month.
Ken Wattrett, an economist at BNP
Paribas who expects a 25 basis point
move next week said: The case for a
rate cut at the first scheduled opportu-
nity continues to build. The threat of
an adverse feedback loop between the
financial sector and the economy
requires a circuit breaker and as
soon as possible.
There were 32 economists forecast-
ing an interest rate cut by the end of
this year, compared with none in the
previous six monthly ECB polls, show-
ing how quickly sentiment has turned.
Markets have priced in a quarter-
point move next month but there are
substantial barriers to the ECB doing
so, particularly after President Jean-
Claude Trichet opposed the move.
ECB to resist rates cut this
month but cave in October
BY HARRY BANKS
EUROZONE
News
Greek protestors on the streets of Athens Picture: Reuters
Eurozone Banks
Banks whose solvency is
threatened by haircuts on their
government bond holdings
SPV
A new Special Purpose Vehicle
would end up holding a collec-
tion of junk bonds, with losses
covered by the EIB and by pro-
ceeds from sales of its own
bonds to investors
Source: Macro
Man Blog, City
A.M. analysis
5. LENDING FOR SPV COLLATERAL
Eurozone banks would post their brand new
triple-A rated SPV bonds as collateral for any
emergency lending from the ECB, allowing the
ECB to be insulated from some of the losses on
junk sovereign bonds.
2. CAPITAL
INJECTION
Using new cash
from the EFSF, the
EIB capitalises a
new SPV, making
the EIBs guaran-
tors (EU states)
liable for any losses
4. JUNK BONDS-FOR-
SPV BOND EXCHANGE
Shaky Eurozone banks are bailed
out, offloading their junk govern-
ment bonds in exchange for
triple-A rated SPV bonds at an
agreed rate
1. CASH-FOR-EFSF
BOND EXCHANGE
The EFSF would borrow
money by selling bonds to
investors, allowing its to
leverage its capital (current-
ly 440bn and due to rise to
780bn) to deploy to the
EIBs SPV for rescues
3. CASH-FOR-SPV BOND EXCHANGE
The SPV further leverages its capital by selling special new
SPV bonds to investors. Like the EFSF bonds, these are attrac-
tive because they have good credit ratings (being underwritten
by triple-A solvent states) but give a higher coupon rate.
Investors
Other buyers of the SPVs
bonds, such as solvent banks
and bond investors
MIGHT LOOK
How the Eurozone bailout of Greece
is turning into one big subprime mess
I
t might look like a template for
the inside of a pinball machine,
but dont let the diagram above
disguise the facts. Markets and
euro politicians are tying themselves
in knots over one very simple prob-
lem: how to convert junk bonds into
triple-A rated bonds.
This quandary might sound famil-
iar, perhaps because it was at the
heart of what many derivatives desks
were up to in the run-up to the finan-
cial crisis. Bundle enough junky
assets together, perform some alge-
braic magic and, hey presto, youve
got a triple-A rating. Or at least, thats
what politicians are hoping.
The structure outlined above is
just one idea of what this process
could look like, but whatever the
details, the aim is the same: Brussels
wants to underwrite Greek debt
with German cash all without let-
ting the voters know.
Whether and how they achieve
this depends on the competing inter-
ests of member states, EU institu-
tions, the ECB and markets
willingness to play along.
For any of it to work, however,
Europe will need ratings agencies to
play ball. But that looks tricky given
how much criticism the agencies
received (from politicians, no less)
for their role in the 2008 crisis. The
irony could hardly be greater.
BOTTOMLINE
Analysis by Juliet Samuel
Book now at KLM.com
Pack & GO
Super Deals
Boston
New York
Miami
362
378
392
from
from
from
return, incl. taxes
return, incl. taxes
return, incl. taxes
Fares quoted are for non-stop return ights in economy class from London Heathrow, operated by Delta Air Lines, including taxes and charges, and are subject to change. Fares are subject to availability and exchange rate variation. Please check for exact
fare at klm.com at time of booking. Book by 24/10/11. Travel periods may vary. Credit card surcharge will apply. Specic booking conditions and the General Conditions of Transportation of KLM and AIR FRANCE apply. Prices correct at 23/09/11.
A
f r i c
a
A
sia
A
m
e
ric
a
E
u
r o
p
e
Non-stop from London Heathrow

e p Su
ck & Pa

s al e r D e
O G ck &

ork New Y
n o st Bo
e p Su
op fr n-st No

n, i r tu e r
m ro f
m ro f
378
362
ork
s al e r D e
ath n He do n m Lo o op fr

s e . tax cl n n, i
378
362
w o r ath

ami i M

n, i r tu e r
n, i r tu e r
m ro f
392
378

s e . tax cl n n, i
s e . tax cl n n, i
392
378

a e r a f
s q e r a F

e p l e v a r . T 1 1 / 00/ 1 / 4 y 2 b k o o B . g n i k o o f b o e m i t t m a o c . m l k t a
m L o r s f s a l y c m o n o c n e s i t h g i n r u t e p r o t s - n o r n o e f r d a e t o u s q

o c b i c e p . S y l p p l a l i w e g r a h c r u s d r a c t i d e r . C y r a y v a m s d o i r e
e x a g t n i d u l c n , i s e n i r L i a A t l e y D d b e t a r e p , o w o r h t a e n H o d n o m L

a t r o p s n a r f T o s n o i t i d n o l C a r e n e e G h d t n a s n o i t i d n o c g n i k o o
t t c e j b u e s r s a e r a . F e g n a h o c t t c e j b u e s r d a n , a s e g r a h d c n s a e

9 0 / 3 t 2 t a c e r r o c s e c i r P . y l p p a E C N A R R F I d A n a M L f K o n o i t a
x r e o k f c e h e c s a e l . P n o i t a i r a e v t a e r g n a h c x d e n y a t i l i b a l i a v o a

. 1 1 / 99/
t c a x
MICHAEL Fallon, the Tory deputy
chairman, yesterday said the private
equity industry was out of control
while Labour was in power even
though he earns 14,000 a year as a
director of a private-equity owned
healthcare firm.
Responding to Labour leader Ed
Milibands speech describing buyout
firms as asset strippers, Fallon said:
Miliband and Ed Balls were in govern-
ment when Labour let private equity
and banks get out of control and creat-
ed the biggest boom and the biggest
bust in living memory.
His comments were contained in a
briefing note from the Conservatives,
which attacked Labour for praising pri-
vate equity firms while in government
and for allowing them to benefit from
various tax reliefs.
But Fallon earns an annual fee of
almost 14,000 for his work as a direc-
tor of Attendo, a Scandinavian health-
care company that is majority owned
by private equity house IK Investment
Partners, according to the Commons
register of members interests.
The Tory party chairman is also a
minority shareholder in Just Learning,
the nursery firm that was bought by
private equity group Alchemy Partners
for 22m in 2001.
Fallon, who set the nursery chain up
with Dragons Den entrepreneur
Duncan Bannatyne, resigned as a
director of Just Learning at the end of
2009 but still owns seven per cent of
the company, according to Companies
House.
In an article on his website, first
published in House Magazine in
October 2009, Fallon writes: It wasnt
hedge funds, derivative trading or pri-
vate equity houses that caused the
financial crisis.
Fallon did not return calls in time
for publication.
Tories attack
Labour party
from the left
News
BEHIND THE LINES | WE ANALYSE ED MILIBANDS SPEECH
The crux of the speech: Miliband
said he was pro-business, but dis-
tinguished between good and bad
business, promising ways that the rules
of our economy can favour or discour-
age. All very nice, but in a notably poli-
cy-light speech, it remained unclear how
this utopia could come about.
Let me tell you what the 21st century choice

is: Are you on the side of the wealth cre-
ators or the asset strippers? The producers or the
predators? Producers train, invest, invent, sell.
Things Britain does brilliantly. Predators
are just interested in the fast buck.

Senior Tory says private equity was out of control under
Labour despite his links to the industry. By David Crow
Loading his speech with talk of
Labours values, Miliband drew a
parallel between bankers tele-
phone number salaries and this sum-
mers looting. He said the banks must
change so that they are part of the solu-
tion to our economic future, not part of
the problem.
This summers riots - not the first time

weve seen decent people with the right val-
ues losing out to those with the wrong ones. The
banking crisis, MPs expenses. Journalists hacking
phones. From them all a something for nothing
culture. Take what you can. Fill your boots.

A bold pledge, and one that could
come back to haunt Miliband if he
manages to overcome weak poll
ratings and eventually become PM.
Despite endorsing frugality, he still man-
aged to attack the coalitions deficit
reduction plans: Government is cutting
back. And the recovery has stalled.
The Labour Party lost trust on the economy.

And under my leadership, we will regain that
trust. I am determined to prove to you that the
next Labour government will only spend what it can
afford. That we will live within our means.
That we will manage your money properly.

DURING Labours leadership con-
test, Ed Miliband triumphed largely
through being perceived as more
real Labour than New Labour --
in contrast to his brother David.
Yesterday he threw several bones
to the trades unions that backed his
rise to the top and signalled a depar-
ture from the Blair and Brown
years. On top of his frequent banker-
bashing, Miliband said New Labour
had not done enough to change
the values of our economy.
We shouldnt have
given Sir Fred Goodwin
that knighthood, he
admitted. We have
seen immigration poli-
cy which didnt work
for the people whose
jobs, living standards
and communities were
affected, Miliband said,
using the words
Britain or
British close
to fifty times during the speech.
Miliband also blasted the old set
of rules for business. And after
promising tighter fiscal rules,
Miliband stated: We cant spend
our way to a new economy --
potentially a swipe at Labours
profligate public spending in the
previous decade, although strange
for a man who simultaneously
criticised the coalitions
austerity plans.
By Julian Harris
Lines open 7 days a week, 8am-8pm, except bank holidays.
SIM only from
10
.50
a month
Switch to a network you can depend on
Call 08080 990 000
Free SIM on great value 12-month plans
Terms apply. Subject tocredit check. Call us freeonyour landline; standardnetwork charges apply
to all calls made froma mobile phone.
Search online for Vodafone press
or go in store today
30-day
contract
also
available
SIMprices on a
12-month contract
10
.50
a month
15
.50
a month
Mins to all UK mobiles & UK
landlines (starting 01, 02, 03)
300
mins
600
mins
Standard UK texts
3000
texts
3000
texts
News
@
@
@
MORE NEWS
ONLINE
www.cityam.com
Is Osborne doing enough to boost
growth in the British economy?
In association with
PoliticsHome.com
Apply to join today at
www.cityam.com/panel
This week were asking members of
our Voice of the City Panel whether
Conservative chancellor George
Osborne is doing enough to promote
growth.
We also want to know whether the
government is doing enough to cham-
pion the private sector. Is it as pro-
business as people expected it to be
before the election?
And if David Cameron were to stand
down as leader of the Tory party, who
would make the best replacement
Osborne or Boris Johnson, the Mayor
of London?
The Voice of the City Panel, in con-
junction with PoliticsHome, has been
specially recruited to represent a
cross-section of Londons business
professionals.
Prospective panellists can apply to
join at www.cityam.com/panel
PoliticsHome.com PoliticsHome.com
In partnership
with
CITY VIEWS: IS ED MILIBAND RIGHT TO TARGET PRIVATE EQUITY FIRMS?
Interviews by Kasmira Jefford
People shouldnt be penalised for working hard
or being creative, or for using private equity firms
to try and build their own businesses and drive
more wealth for the country. If you tar-
get them, you are going to lose that cre-
ativity.
AARON PAYNE | cONVERGYS
It's a bit unfair to target private equity firms by
calling them asset strippers, or to single them out.
What about a firm of solicitors or consulting firms
involved in restructuring companies that are
insolvent? They could be included in the
asset stripper category too.
MICHAEL STEFAN | HANOVER RESEARCH
I think that anything that promotes the country moving in the right direction as far as job creation
is concerned is a good thing. So if there are companies out there that arent working towards that
goal then perhaps they do need to be penalised.
JANE STEVENS | JENRICK IT
* These views are those of the individuals above and not necessarily those of their company.
PWC BOSS Ian Powell has lead the
charge against the European
Commissions (EC) proposed shake-up
of the accounting industry.
Writing in City A.M. today, Powell says
the proposed creation of audit-only
firms could create severe disruption
and undermine quality and confi-
dence, and calls for more input from
UK firms in shaping the final reforms.
Other big four accountants and the
Citys MP entered the fray yesterday.
The proposals could be detrimental
to audit quality, said a Deloitte
spokesman. We do not support cer-
tain matters that have been discussed
such as joint audits, mandatory rota-
tion and tendering, and a complete
ban on non-audit services.
An industry source told City A.M.
that these proposals ride roughshod
over the measures discussed by the
European Parliament on 13
September. That said, it is not entirely
a surprise we always knew the EC
might do something like this.
This risks undermining our ability
to carry out quality audits, does noth-
ing to help the Europes financial
problems and is just an EU response
when any changes have to be imple-
mented globally.
City of London MP Mark Field criti-
cised the proposals as an unnecessary
assault on some of the UKs most suc-
cessful businesses.
This betrays some confused think-
ing from the EC we should be
encouraging the Citys best businesses
to diversify. Size alone has never been
the problem and we should favour
innovation, he told City A.M.
The final proposals will be unveiled
later this year. It is important that the
final proposals support growth,
ensure that audit quality is not
reduced and do not impose unneces-
sary regulation on business, said a
source at the Department for Business,
Innovation and Skills.
IAN POWELL: P22
Outraged City
hits back on
EU audit plan
Saying goodbye: Deanna Oppenheimer will leave Barclays Picture: REX
BY TIM WALLACE
PROFESSIONAL SERVICES
News
Barclays reshuffles execs
as Oppenheimer departs
DEANNA Oppenheimer, one of
Barclays top female executives, has
announced she will leave the bank.
The American will step down as
chief executive of retail and busi-
ness banking (RBB) in Britain and
Europe on 1 October.
She will stay on as vice-chair of
the division until the end of the
year.
Ashok Vaswani, currently chief
executive of Barclays Africa, has
been named head of RBB for Britain.
Antony Jenkins, RBB chief execu-
tive, also takes on responsibility for
Europe.
Oppenheimer, 53, spent six years
with Barclays and has been credited
with driving the integration of
more than one million customers
from Woolwich, which the bank
took over in 2000. She is now under-
stood to want to take up roles out-
side financial services.
She said: When I came to
Barclays my goal was clear, to lead
the transformation of UK retail
banking and leave in place a suc-
cessful management team that is
well placed to continue the journey.
It is with immense pride that I leave
having achieved this goal.
Jenkins praised her work on the
turnaround of Barclays in Europe.
NATIONAL Australia Bank (NAB) reject-
ed a bid by Hugh Osmonds Sun
Capital for its UK assets before enter-
ing into its current talks with NBNK
Investments, it has emerged.
A source familiar with the situation
said that the bid, which was around
2bn, was made in the last few
months but did not go anywhere.
NAB is now in talks with NBNK, the
buy-out vehicle set up by Lord Levene,
over the sale of Clydesdale and
Yorkshire Bank, its UK business.
Despite NAB talking down the possi-
bility of a UK exit, City A.M. under-
stands that the bank has met with a
range of potential City investors over
recent weeks, though it is only known
to be in takeover talks with NBNK.
The revelation that Sun Capital bid
on the NAB assets underlines the
dilemma facing both Sun and NBNK,
both of which are also bidding for the
632 branches that Lloyds is selling.
The Lloyds branches would deliver a
4.6 per cent market share of the per-
sonal current account market. But the
Independent Commission on Banking
(ICB) has recommended that they be
sold to a firm that can deliver a greater
market share overall.
Co-operative Group, the third Lloyds
bidder, already has retail deposits with
which it could combine the branches,
an advantage that Sun Capital and
NBNK both currently lack.
BANKING
Bid for NAB

UK rejected
BY JULIET SAMUEL
BANKING
HOUSE PRICES in almost every US

city fell over the last year, according
to the Standard & Poors Case-Shiller
index, out yesterday.
The 4.1 per cent decline in the year
to July takes prices back to levels last
seen in the summer of 2003.
The value of single-family homes
fell in 18 of the 20 cities surveyed in
the index. Worst hit was Minneapolis,
where prices fell by 9.1 per cent.
However, this is slower rate of decline
than in the previous three months
which each saw double-digit annual
declines.
Detroit and Washington fared best
with rises of 1.2 per cent and 0.3 per
cent respectively.
Across the 20 cities which make up
the index, prices were flat from June
to July on a seasonally adjusted basis.
However, the figures for the month
are slightly more positive than the
annual change. Only 10 of the 20
cities experienced a decline in prices,
with eight seeing increases and prices
staying steady in the remaining two.
On an unadjusted basis, prices
across the 20 cities increased by 0.1
per cent in the month.
However, analysts do next expect
that modest increase to mark the
start of a new positive trend.
We still expect prices to fall back a
bit later this year, said Paul Dales,
senior US economist at Capital
Economics. Prices lag changes in
demand so have yet to fully reflect
falling sales over the last six months.
Also, with recent data suggesting
that foreclosure filings jumped by as
much as 30 per cent in August, it
might not be long before an increase
in the volume of distressed sales
starts to weigh more heavily on prices
again.
US consumer confidence remained
low in September, according to data
out yesterday from the Confidence
Board. Expectations of future earn-
ings slid lower, a sign that does not
bode well for spending said Board
director Lynn Franco.
House prices
drop across
20 US cities
HIGH STREET spending fell again in
September with the Confederation of
British Industrys (CBI) distributive
trades survey, released yesterday, show-
ing more retailers suffering from
falling sales.
Thirty-nine per cent saw sale vol-
umes falling over the last 12 months,
compared with 24 per cent who expe-
rienced an increase. That gives a bal-
ance of -15 per cent, down on -14 per
cent last month and the lowest since
the balance hit -18 in May 2010.
The surveys three-month moving
average showed the balance sliding to
-11 per cent -- the fastest rate of decline
in over two years. Expectations fell too,
with the future sales balance down
from -7 to -14.
The findings add to a growing body
of evidence which suggests that retail-
ers will enter the all-important final
quarter of the year fighting for busi-
ness in the face of weak consumer con-
fidence, said Markits chief economist
Chris Williamson.
Household spending is being sub-
dued by job worries, rising prices,
higher utility bills and weak pay
growth.
No end in sight for suffering retailers
as sales fall for five months in a row
BY TIM WALLACE
US HOUSING
BY TIM WALLACE
UK ECONOMY
News
UK HOME-BUYERS NOT PUT OFF BY DOWNTURN
ECONOMIC gloom
might be hitting
retail sales, but big-
ger spending plans
are still on track,
according to a
report from
Santander out
today. Eight per
cent of Londoners
intend to buy a
house in the next
year, while 31 per
cent the highest
proportion in the
country plan to
buy in the next five
years. Nationally,
25 per cent intend
to buy. Pic: REX
MARK Byrne, the insurance entrepre-
neur aiming to gain control of
Omega, has not ruled out a possible
partnership with Barbican.
The two groups, who are both
involved in bid talks with Omega,
held talks recently at the
Reinsurance Rendezvous in Monte
Carlo, a conference for the reinsur-
ance sector.
The talks broke down but yesterday
sources close to Byrne said he had not
ruled out an amalgamation at some
further point down the line.
Byrnes Haverford vehicle yesterday
issued a tender document aimed at
gaining a 25 per cent holding and
management control at Omega. He
did so without regulatory approval,
which he hopes to get in November.
Barbican, which has raised 105m
in recent years from Carlson Capital
and Steel Partners, has proposed a
reverse takeover of Omega. The
group, which specialises in marine,
aviation, and property reinsurance,
now has net assets of only 80m,
according to industry sources.
The third, but possibly favourite
bidder Canopius, yesterday said that
the due diligence for its full 84p a
share offer would be completed by
the end of the week.
Michael Watson, chairman of
Canopius, said: We are encouraged
by the feedback from a wide range of
institutional shareholders, a signifi-
cant number of whom have
expressed interest in a full cash bid.
Canopius hopes to launch its bid
next month.
Byrne keeps
door open to
Barbican deal
ELLIOTT Advisors, the activist investor
behind a boardroom assault on
National Express this year, saw its pre-
tax profit slump 67 per cent in 2010,
accounts showed yesterday.
Elliott, the UK subsidiary of Paul
Singers US hedge fund manager
Elliott Management, said its turnover
more than halved to 46.2m by the
end of last year, from 124m in 2009.
The Mayfair-based company was
started in 2009 and is now run by
Singers son Gordon. Like the parent
firm Singer founded in 1977, it invests
in distressed or restructuring compa-
nies to unlock shareholder value.
The Companies House accounts
gave little insight into the causes for
the fall. The directors noted only that
they anticipate modest growth in
staff numbers and the company will
continue to provide services related to
investment management, research
and advice.
Though it added two employees in
2010 to take its staff to 41, Elliott
slashed its salary bill by almost 70 per
cent in the year to 29.7m from
95.7m in 2009. Including pension
contributions, it paid staff 34m,
down from 108.2m in 2009.
Elliott won a truce with National
Express in May after campaigning for
the board to improve performance or
consider selling the business. Elliott
built a 17.5 per cent shareholding and
called for three new directors, eventu-
ally seeing its candidate Chris
Muntwyler added to the board.
It also called for board change at
Swiss biotech firm Actelion, but was
defeated after the company hired
industry heavyweight Jean-Pierre
Garnier as its next chairman.
Hedge funds still racking
up losses in September
Join today, and get at least 100* for improving your health & ftness.
We have 20 Centres in and around London. To try us for free text CITY
followed by your full name and home or work postcode to 88122
.
* Please visit nuf eldhealth.com/terms for full details. Terms and conditions may apply. Cost of text message is at your standard network rate.
Nuf eld Health 2011.
7 out of 10 members got
healthier & ftter with
us. Fact.
*
BILLIONS of dollars have been wiped
off the value of global hedge funds
this month as the industry shows lit-
tle sign of recovery after a grim
August.
Plunging equity prices, particularly
in Europe, have contributed to a 2.3
per cent fall for the average hedge
fund in September so far.
The provisional data from the
HFRX global hedge fund index, made
up of around 60 funds and represen-
tative of the industry as a whole,
come after a grim August, when aver-
age losses were even worse at 3.47 per
cent. Many managers were left with
losses last month when market falls
went beyond their expectations and
they had not sufficiently protected
their long bets with short positions.
SAC Capital Advisors, Third Point
Offshore Fund and T2 Partners were
among the losers in August, even
though a similar slump in financial
stocks helped much of the industry
make gains during the financial cri-
sis.
The September figures, from Hedge
Fund Research, contrast with a solid
performance last year and stellar
results in 2009, when the industry
made gains of 5.19 per cent and 13.4
per cent respectively.
Elliott Advisors earnings dive
as business shrank last year
BY DAVID HELLIER
INSURANCE
FUND MANAGEMENT
MERCHANT banking group Close

Brothers yesterday said it was on the
lookout for takeovers as its adjusted
operating profit improved by 13 per
cent in the year to July.
Close said it made 131m operating
profit despite a difficult economy, but
pre-tax profit slipped 22 per cent to
78.5m as it paid a raft of restructur-
ing costs.
Chief executive Preben Prebensen
said it was now looking to grow its
9.6bn asset management arm by
adding independent financial adviso-
ry firms, after buying wealth manager
Cavanagh earlier this year. We would
like to buy another couple of good IFA
businesses, he said. We would like to
add another 1bn to 2bn of clients
assets under management.
Closes asset management business
posted a 9m loss for the year as its
restructuring continued, while diffi-
cult financial markets caused earnings
to fall in its stockbroking arm.
But its banks underlying operating
profit rose 34 per cent to 106m as its
loan book gained 18 per cent.
Close Brothers
eyes expansion
as profits rise
FUND MANAGEMENT
HEDGE FUNDS
News
ANALYSIS l Omega Insurance Holdings Ltd
p
21 Sept 22Sept 23Sept 26Sept 27Sept
76
75
74
73
75.00
27 Sept
Mark Byrne hasnt closed the door on a possible deal with Barbican over Omega
PUB CHAIN
TYCOONS IN
CONCERT AT
THE RACES
ON Monday, the issue of concert parties
on the shareholder register of Mitchells &
Butlers resurfaced, after racing tycoons
John Magnier and Derrick Smith issued a
statement disclosing the size of their com-
bined shareholding.
Behind the scenes, the long-standing
business associates who have co-owned a
string of racehorses will get the chance
to catch up at this autumns round of
bloodstock auctions.
Their paths havent crossed so far
Smith has not joined Magnier at the Goffs
auction in Ireland, where Magnier is cur-
rently buying racehorses for his Coolmore
stud but both are expected at the
Tattersalls October Yearling Sale, which
starts next Wednesday.
Plenty to talk about then, as the duo
shop for the cream of the unbroken year-
lings at the Newmarket horse fair, where
last year Magnier bought the most
expensive lot, paying 1.2m guineas
through his bloodstock agent Demi
OByrne for a filly called Was.
However, that is small change com-
pared to the $16m Magnier spent on The
Green Monkey, a thoroughbred named
after one of the golf-courses attached to
taking an interest in the sport four years
ago.
But faced with a choice of horseracing
or trucks, Tinklers road haulage empire
still wins every time earlier this month,
his horse Tell Dad was abandoned at
Newmarket as Tinkler rushed off to mix
with his 6,500 fans at Stobart Fest.
Not even the news that Tell Dad won
200,000 prize money in the most valu-
able race of the day could detract from
the celebration of trucks, trailers and
their drivers. We all knew where he
would rather be, said an amused mole.
HAVANA CLUB
CUBAN cocktails all round at
Boisdale of Canary Wharf tonight,
as the Cuban ambassador Esther
Armenteros is taking a trip to E14
for a private view of Authentic
Cuba, an exhibition of photo-
graphs by Alejandro Gortazar.
To join Boisdales owner
Ranald MacDonald for mojitos
and Havana Clubs at the Music
Fund for Cuba fundraiser, RSVP
on 0207 715 5818 or email
events@boisdale-cw.co.uk
Magniers Sandy Lane resort in Barbados
that retired in 2008 without ever win-
ning a race. Buying unbroken horses is a
big gamble, said The Capitalists blood-
stock mole. Because there is no guaran-
tee they will ever win.
SHEIKHS BREAK
ALSO expected to buy horses at Newmarket
next week are Investecs chief executive
Bernard Kantor (right), who is poised to
sign a new sports sponsorship deal; proper-
ty billionaire Sir Robert Ogden; and Qatari
royal Prince Fahad al Thani, who has a
new love of racing after sponsoring the
British Champions Series.
The world of billionaire racehorse own-
ers is not without its feuds too many
egos, says an insider but one clash that
looks as though it is being resolved is the
standoff between Magnier and Dubais
ruler Sheikh Mohammed Al Maktoum.
The pair have refused to buy yearlings
sired by each others stallions for years,
but earlier this month Magniers
Coolmore operation bought the
Bernardini colt from the sheikhs
Darley stud for $875,000. It was
interesting to see, noted one
observer.
TRUCK DRIVER
MEANWHILE, an unlikely
emerging power in the racing
industry is Andrew Tinkler, the
chief executive of Eddie
Stobart, who has built up a sta-
ble of 40 to 50 racehorses since
Derrick Smith (left) and John Magnier collect the Tattersalls Rogers Gold Cup in May after a win by their horse So You Think
11 EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
The Capitalist
CITYA.M. 28 SEPTEMBER 2011
Andrew Tinkler meets his fans at Stobart Fest
JOE Lewis yesterday signalled he will
press ahead with a low-ball takeover
offer for pub chain Mitchells &
Butlers, after his investment vehicle
Piedmont branded the groups results
disappointing.
It is a very disappointing score card
for all shareholders and we are serious-
ly considering our options, said a
spokesperson for Piedmont owner Joe
Lewis on yesterdays trading update.
Like-for-like sales at M&B increased
0.5 per cent in the nine weeks to 17
September, slowing down from 2.7
per cent for the year as a whole.
Piedmonts statement follows
Mondays disclosure by shareholders
Elpida and Smoothfield that they are
acting in agreement with regards to
any potential bid for M&B, declaring a
24.2 per cent joint holding.
If Elpida and Smoothfield owned
by the Irish tycoons JP McManus and
John Magnier and by their racing
associate Derrick Smith respectively
buy shares to take their holdings
through the 30 per cent threshold,
the move will trigger a mandatory
bid. It remains unclear whether Lewis
is planning to join forces with the
Irish concert party to support his 22.8
per cent interest in the company.
Jeremy Blood, interim chief of M&B,
maintained the groups robust per-
formance was broadly in line with the
slowdown in consumer confidence he
announced in July. We have enjoyed
34 quarters of like-for-like growth and
the business should be valued on that
basis, he told City A.M.. DIARY: P11
Piedmont hits
out at M&Bs
sluggish sales
INVESTMENT manager Vrde
Partners has snapped up credit card
provider SAV from its consortium of
backers in a 472m deal.
SAV, which manages about 500,000
credit card accounts with more than
600m in assets, had been majority
owned by Palamon Capital Partners,
Electra Private Equity and Morgan
Stanley Alternative Investment
Partners.
Minnesota-based Vrde wants to
expand its consumer finance invest-
ments from Europe.
SAV has been on the acquisition
trail over the last four years, buying
credit card businesses from HSBC and
Citigroup.
It bid unsuccessfully for the Egg
online bank last year.
David Symondson, deputy manag-
ing partner of Electra, said of the
deal: This is a perfect example of cri-
sis breeding opportunity: for SAV it
was finding investors willing to sup-
port and fund the growth of a non-
standard credit card business during
one of the most challenging operat-
ing environments we have seen.
Kent-based SAV was set up 10 years
ago to cater for consumers overlooked
by the major card companies. Its
clients have included Lloyds Banking
Group and First Data.
Credit card
provider SAV
sold for 472m
M&B bidder Joe Lewis M&B shareholder John Magnier
Smoothfields Derrick Smith JP McManus Pictures: REUTERS/PA
BY HARRIET DENNYS
LEISURE
PRIVATE EQUITY
News
ANALYSIS l Mitchells and Butlers PLC
p
21 Sept 22Sept 23Sept 26Sept 27Sept
260.0
257.5
255.0
252.5
250.0
247.5
245.0
246.50
27 Sept
News
THE NEW boss of mobile network 3
yesterday laid out ambitious plans to
double the firms customers but said
he is very worried rivals will
attempt to dent its plans by delaying
the upcoming mobile spectrum auc-
tion.
David Dyson, speaking publicly for
the first time since taking the reins
from Kevin Russell, said he plans to
increase the firms customer base from
5m to 10m over the next four years.
The extra weight means the firms
network will begin to show signs of
congestion next year, making the
allocation of new 4G mobile radio
waves vital to its plans.
Under a recent restructuring of
mobile spectrum rules, Vodafone,
Everything Everywhere and O2 have
been allowed to refarm some of
their 2G network to 3G, which is bet-
ter suited to handling data traffic.
However, they will not start to pay
the corresponding 3G licence fee
which could amount to 300m
until after the auction, prompting
Dyson to suggest it is in their interests
to delay it for as long as possible.
The Ofcom auction, which analysts
say could raise around 4bn, has been
blighted by complaints from the
three major operators. Dyson believes
the auction will go ahead next year
with 3 involved in the bidding,
adding the firm has not decided how
much it is willing to spend.
Dyson said 98 per cent of 3s hand-
set sales are now smartphones, with
its share of data traffic boosted by the
acquisition of the iPhone.
3 boss unveils
plan to double
customers
DAILY Mail & General Trust (DMGT)
will see its full-year profits slip after
taking a hit from a faltering con-
sumer advertising market.
Ad sales at its national newspaper
business were robust, but were offset
by torrid trading at its regional opera-
tions, which saw revenue fall 11 per
cent in the last quarter.
Online ad sales continued to soar,
with MailOnline, now one of the
worlds most popular news websites,
contributing to a 54 per cent leap.
The firms business unit, which
hosts events and provides informa-
tion on property, financial and other
markets, also performed well, seeing
its underlying revenue jump nine per
cent.
However, the consumer division
is expected to drag the firms full
year figures to the bottom end of
forecasts.
Chief executive Martin Morgan
said: Despite our continued focus on
operational efficiency, the weak con-
sumer advertising environment
means that full year group operating
profit will be lower than last year.
Slide in regional ads to push
DMGT to full year profit fall
BY STEVE DINNEEN
TELECOMS
QUERCUS LIFTED BY LARSSON AFTERGLOW

PUBLISHER Quercus said yesterday it had managed to attract some big name book deals
after the phenomenal success of its Stieg Larsson hit The Girl with the Dragon Tattoo.
Quercus recorded sales of 12m in the first six months of 2011. Pre-tax profit rose to
3.4m, up marginally on 2010s 3.3m. Chief executive Mark Smith said deals had been
done for an Eddie Izzard book as well as a project with rapper 50 Cent. Picture: REX
NEWS | IN BRIEF
iPhone 5 expected next week
Apple is expected to unveil its much-
awaited new iPhone next week, with
analysts speculating it could sell as
many as 26m units in its first three
quarters on sale. The secretive firm
announced it will hold an event at its
headquarters in Cupertino next
Tuesday. Its shares rebounded yester-
day after taking heavy losses in the pre-
vious session on rumours the firm was
preparing to cut its orders from Asian
manufacturers.
RIM jumps on Icahn speculation
Shares of Research In Motion jumped
more than six per cent yesterday morn-
ing on market speculation that activist
investor Carl Icahn had taken a stake in
the struggling BlackBerry maker. Its
shares have lost some 60 per cent of
their value this year, and the Canadian
company has been the target of several
investor attacks after a series of profit
warnings and the botched launch of its
PlayBook tablet computer.
Europe plans internet charter
The Council of Europe plans to establish
an internet user charter to guarantee
the rights of consumers in an era of
increasing government attempts to seize
control of the web, its deputy secretary
general said yesterday. Internet activists
say governments ranging from Egypt to
Pakistan have been trying to control the
internet through tactics like filtering and
blocking of content.
ANALYST VIEWS: WHAT DID YOU TAKE FROM
DMGTS RESULTS? Interviews by Steve Dinneen
LORNA TILBIAN | NUMIS

The tone of DMGT's conference call was one of cautious optimism.
Management's downgrading of guidance to the 'lower end of the range' was due
to cover price discounting at the Mail on Sunday following NotWs closure.
JONATHAN JACKSON | KILLIK & CO

The group has delivered a solid revenue performance, driven by the
continued strength of the B2B operations offset by difficult market conditions for
the consumer businesses.
STEVE LIECHTI | INVESTEC

The B2B assets seem to be performing well but the consumer assets
have been slightly disappointing. Things are looking better for the fourth quarter,
with earnings stable shares look good value.
BY STEVE DINNEEN
MEDIA
ANALYSIS l Daily Mail And General Trust

p
375
365
355
345
368.00
27 Sept
RIO TINTO lifted its stake in Canadas
Ivanhoe Mines to 49 per cent yesterday
as tensions continued over the huge
Oyu Tolgoi copper-gold project in
Mongolia.
The Anglo-Australian miner bought
3.7m shares of Ivanhoe for about
C$73m (46m), bringing its stake in
the exploration and development
company to the maximum level
allowed under a pact between the two
companies.
The move comes just days after the
Mongolian government asked to rene-
gotiate the terms agreed in 2009 on
developing the mine of which they
own 30 per cent demanding to speed
up the timetable for its stake to rise.
It is the second time since June that
Rio has increased its stake in Ivanhoe,
whose share price has been under
pressure as investors worry that
Mongolian lawmakers will take more
control of Oyu Tolgoi as part of a trend
of resource nationalism in parts of
Asia and Africa.
Ivanhoe discovered the gold-copper
ore deposit in 2001 in Mongolias Gobi
Desert and it currently owns 66 per
cent. It is expected to be one of the
largest mines in the world when it is
developed.
Ivanhoes shares closed up 20 per
cent at C$3.05 yesterday.
CENTRAL Rand Gold (CRG) saw its
shares crash 56 per cent to just 0.22p
yesterday after the FTSE Fledgling
firm had its mining licences revoked.
The firm said the South African
ministry of mineral resources has can-
celled its mining rights with immedi-
ate effect, in a dispute over rules on
mining work and social labour.
The London- and Johannesburg-list-
ed miner has said it is consulting with
legal advisers over its next steps.
Talks had been ongoing between
the government and CRG for several
months, after the firm pledged to
drain mines and treat acid damage at
its sites.
The mining department sent the
company a compliance notice in
August, complaining that the firm
was in breach of its rights agreement
for the site south of Johannesburg.
CRG has argued that its agreement
was based on its original 2008 opera-
tional plans submission which had
envisaged a considerably larger
resource base and operation.
A spokesperson for the ministry
told South African media yesterday:
This is the first mining right to be
revoked in the recent past If people
make a commitment to the state they
must honour that commitment. They
will be held accountable.
CRG, which floated in London in
2007, launched a strategic review in
March, which included scoping out a
possible sale of the firm. But earlier
this month it said all takeover
approaches so far had been rejected
and it was no longer in an offer period
under the UK takeover code.
Analysts at Numis said the min-
istrys decision must surely be the
last of the thousand cuts for the com-
pany.
Central Rand
Gold loses its
mining permit
A
C
2
2
7
5
3
Think carefully before securing other debts against your home. Your home may be
repossessed if you do not keep up repayments on your mortgage.
first direct credit facilities are subject to status. Rates correct as at 02 September 2011. Because we want to make
sure were doing a good job, we may monitor and/or record our calls. HSBC Bank plc 2011. All Rights Reserved.
first direct 40 Wakefield Road, Leeds LS98 1FD.
Get excited
over nothing...
Our new ZERO FEE
Offset Mortgages
Sorry to get you excited over nothing.
Its just a new range of Zero Fee mortgages
from first direct. All with competitive rates
and award-winning service too.
Our Fee Free 2 Year Tracker Offset Mortgage lets
you track 2.49% above the Bank of England base
rate for 2 years and link your qualifying savings
and current accounts to your mortgage so you
only pay interest on the difference. That means
that you could pay less interest on your mortgage
every month, and less on your mortgage overall.
Zero fee and fee free means no arrangement fee,
no booking fee and no standard valuation fee.
We will cover the cost of one standard valuation
where this is required by us as part of your
mortgage application. Other fees and charges may
be payable to other people, such as legal fees.
Did we mention its Zero Fee? ZERO FEE!
Take a deep breath and call us today.
You must hold and or open a 1st Account to qualify.
This offer may be withdrawn at any time without notice.
Fee Free 2 Year Tracker
Offset Mortgage
Tracks the Bank of England base rate plus
2.49% for 2 years, currently
2.99%
Changing to our Standard Variable Rate
for the rest of the term, currently
3.69%
The overall cost for comparison is
3.7%APR
Maximum loan to value (LTV) is 65%.
Minimum mortgage is 30,000.
0800 151 3009
firstdirect.com
A range of mortgages, nicely arranged
Rio Tinto lifts stake in Canadas
Ivanhoe Mines to 49 per cent
BY MARION DAKERS
MINING
MINING
News
ANALYSIS l Central Rand Gold
p
22Sep 23Sep 26Sep 27Sep
0.60
0.40
0.20
0.22
27 Sept
How anti-capitalist rhetoric is affecting us all
T
HREE party conferences, and
three more rounds of anti-capi-
talist rhetoric and bearing the
brunt, of course, are the bankers.
YouGovs BrandIndex illustrates how
consistent negative rhetoric and press
coverage has impacted the overall per-
ception of the banking industry.
The banking industry index average
(spanning 10 retail banks) has
remained persistently negative, at its
lowest in March at -3.4 and remaining
today at -1.2. The data shows how there
have been few winners in banking this
year, only survivors. Nationwide has
managed one of the highest industry
index scores in March at 14.6 and
today at 13.8. RBS lingers some 20
index points lower, at -15.4 in March
and -14.4 today.
The impression scores of the indus-
try also remain consistently negative,
averaging a -8 score for the year. RBS
dipped below the -30 mark in January,
March and again in May and shows no
sign of improvement today.
Where is the policy discussion on
the real drivers of the economy, such
as productivity? The latest figures
from the ONS show that French and
German productivity rose between
2009 and 2010 not so in Britain,
where it remains stagnant.
According to YouGovs Household
Economic Activity Tracker, the per-
centage of UK workers who expect
activity at their workplace to increase
over the next year is flat. In April the
reading was 13.2, and despite a rise in
July to 16.2 this figure has slid back.
Shadow chancellor Ed Balls on
Monday admitted that the huge
increase in public spending driven by
the previous government did not yield
sufficient dividends. Everyone wants
deficit reduction and job creation, but
they never talk about increasing pro-
ductivity.
That would mean dealing directly
with dull, difficult and vital issues like
public sector efficiency, employment
practices, procurement, and the re-
engineering of our public services and
the reform of the civil service to deliv-
er more value-for-money.
For as long as politicians dwell on
anti-capitalist rhetoric, our productivi-
ty and ultimately job creation will lag.
Stephan Shakespeare is the chief executive of
YouGov
BRAND INDEX
STEPHAN SHAKESPEARE
ANALYSIS l Index
Nationwide
Industry avg
RBS
Sep-10 Nov Jan-11 Mar May Jul Sep
20.0
-20.0
10.0
-10.0
0.0
DEFENCE and aerospace giant BAE
Systems confirmed yesterday that it is
cutting almost 3,000 jobs at sites
across the country, as the industry
reacts to diminishing defence budgets
and increased competition from
emerging markets.
In a statement issued yesterday, Ian
King, chief executive of BAE, said the
firm need to cut back its workforce
because of the huge pressure on the
defence budgets of Western nations,
and the challenge to remain compet-
itive to ensure its long term future.
BAE said 899 jobs will go at Brough
in East Yorkshire, 843 at Warton and
Preston in Lancashire and 565 at
Samlesbury, while hundreds more
positions will be lost at smaller sites
across the UK.
Speaking outside the site in Brough
yesterday, former home secretary Alan
Johnson described the news as a dev-
astating blow for the defence manu-
facturing industry.
This is a little oasis of high value,
well paid, skilled jobs. This is a terrible
day, a really gloomy time, he said.
Unite, the trade union, called it a
dark day for British manufacturing
and vowed to fight the lay-offs.
The government cannot sit on its
hands and allow these highly skilled
jobs to disappear, it said.
Business secretary Vince Cable
described the news as a serious
knock and said the government
would work to ensure those made
redundant find new jobs as there is a
shortage of skilled engineers.
BAE confirms
3,000 job cuts
across Britain
SHARES in Man SE surged more than
seven per cent yesterday after German
carmaker Volkswagen secured EU
approval to buy the truckmaker.
Volkswagen, Europes largest car
maker, clinched a 55.9 per cent stake
in Munich-based Man in July, allowing
it to compete with rivals Daimler and
Volvo.
Volkswagens shares also rose 6.7
per cent yesterday after news of the
approval.
The European Commission said in a
statement that it did not see any
major competition issues with the
deal.
The Commissions investigation
showed that European heavy truck
and bus markets would remain com-
petitive after the merger, the EU exec-
utive said.
The merged entity will continue to
face strong competition from other
well established manufacturers such
as Daimler, Volvo, Iveco and DAF
trucks and Daimler, Volvo, Iveco,
Solaris and VDL in buses, it said.
Meanwhile Volkswagen part-owner
Qatar said it is looking for more invest-
ment opportunities in Germany.
The head of Qatars sovereign
wealth fund, which also owns a stake
in Porsche, said yesterday it hopes to
strengthen its position in the country.
TROUBLED care home operator
Southern Cross started to return its
care homes to their owners and trans-
fer its back office functions to a new
company as it liquidated yesterday.
The bankrupt care provider said it
would move about two thirds of its
752 homes back to their owners by
early November while HC-One, a new
venture set up by major landlord NHP,
will take over operations.
NHPs 249 homes and another 203
owned by smaller property groups
should be transferred this weekend.
Southern Cross will sell the 19
homes it owns, and swap another 11
leasehold properties for a 1m pay-
ment it will return to its lenders.
But about a third of homes are as
yet unaccounted for. Chairman
Christopher Fisher, who steps down
this weekend, said the insolvency was
a matter of considerable regret.
Volkswagen
investors cheer
Man approval
Southern Cross returns
care homes to landlords
Southern Cross chairman Christopher Fisher regretted the firms downfall
BY KASMIRA JEFFORD
DEFENCE
INDUSTRY
News
BY ALISON LOCK
SERVICES
17
ANALYSIS l BAE Systems
p
290
280
270
276.40
27 Sept
Topps profit will hit forecasts
READER OFFER - EXCLUSIVE TICKETS FOR THE UK PREMIERE OF BRIT ROMANTIC COMEDY FIRST NIGHT
ON 4
TH
OCTOBER AT BOISDALE OF CANARY WHARF
INCLUDING AFTER PARTY WITH PERRIER JOUET CHAMPAGNE AND 4 COURSE CANAP RECEPTION.
(S[RXSR%FFI][MXLHMZEWE^^]&VMXMWLVSQT7YRHE])\TVIWW
TICKETS: 100 Visit www.boisdale.co.uk or call 020 7259 1253
STRUGGLING Topps Tiles said yester-
day it will hit City profit forecasts for
around 13m for the year despite the
weak state of the high street.
Shares in the UKs largest tile and
wood flooring retailer surged by
more than 25 per cent, making it the
biggest riser in the FTSE indices,
after the announcement. The retail-
er will end the year with 320 UK
stores, having opened 15 during the
period and closed or relocated seven
others.
It will report its full-year results
on 29 November.
It said overall UK revenues would
be lower than last year at about
175.7m, down from 182.4m last
year, with like-for-like sales 1.9 per
cent lower.
Consensus forecasts predict annu-
al profits of 13.4m. Some analysts
said Topps had seen some benefit
from the stuttering housing market,
as fewer homeowners sell up but
rather spend money on sprucing up
their own properties.
Topps added there were no signif-
icant unexpected changes in the
groups finances since its interim
report in April.
Shares in Topps Tiles closed at 32p
yesterday.
BY JOHN DUNNE
RETAIL
PAWNBROKER Albemarle & Bond saw

profits rise five per cent as demand
for short-term loans rose sharply and
the rise of the gold price boosted busi-
ness.
Group pre-tax profits rose to 21m
in the year to June, on revenues that
were 24 per cent ahead at 102m.
Profit from short-term lending rose
15 per cent to 31.5m.
High gold prices meant profits at
its gold buying business jumped 27
per cent to 14.6m. The final dividend
was declared at 9.75p, making a total
payment for the year of 12.5p, up 6.4
per cent year-on-year.
Albemarle & Bond lifted
by surge in price of gold
RETAIL
News
Chief executive Roger White with some of the companys drinks
Independent Member of the Audit and Risk
Management Committee
The City of London Corporation provides local government and policing services for the
financial and commercial heart of Britain, the Square Mile. It is committed to supporting
and promoting The City as the world leader in international finance and business services
through the policies it pursues and the high standard of services it provides. Its
responsibilities extend far beyond the City boundaries in that it also provides a host of
additional facilities for the benefit of the nation. These range from open spaces such as
Epping Forest and Hampstead Heath to the famous Barbican Arts Centre.
The Audit and Risk Management Committee oversees the systems of internal control,
the risk management strategy and the risks related to all governance issues that may
have an impact on the Corporations ability to meet its vision, preserve its reputation
and deliver its strategy and obligations. Together with twelve Members of the Court of
Common Council, there are three Independent Member appointments with one of those
currently being vacant. The Committee meets during the working day on five to six
occasions a year with some additional training events. The person appointed will be
provided with a comprehensive induction to the Corporation.
You must not have been a Member or Officer of the City of London Corporation in the
last five years, currently be a Member or Officer of any local authority or be a relative
or close family friend of a Member or an Officer of the City of London Corporation.
The appointment will be subject to the approval of the Court of Common Council in
January 2012 and will run until March 2016.
If you wish to discuss the position informally then please contact Suzanne Jones,
Business Support Director on 020 7332 1280.
For an application pack please visit www.cityoflondon.gov.uk/jobs
Alternatively, please contact the Corporate Recruitment Unit on 020 7332 3978
(24hr answerphone). A minicom service for the hearing impaired is available on
020 7332 3732.
The closing date for applications is noon on Friday 28 October 2011.
Interviews are planned for Tuesday 15 November 2011.
The City of London Corporation is committed to equal opportunities
and welcomes applications from all sections of the community.
CITY OF LONDON CORPORATION
IRN-BRU maker AG Barr said yes-
terday its sales had narrowly risen
in the first half.
Profits were flat at 16.2m on
sales up four per cent at 124m,
following the coldest and wettest
summer for 18 years.
However, the company branded
the performance resilient.
Chief executive Roger White
said: This is a particularly positive
result given the weather as well as
heavy soft drink discounting
across the industry.
He said the groups key brands
including Irn-Bru, Strathmore and
Rubicon had increased sales by
six per cent and gained extra mar-
ket share.
AG Barr is planning to open its
first plant in the south of England.
Details are still under wraps, but
White said that the plant would
provide a considerable increase to
the groups canned and plastic
bottled drinks capacity.
He said less plastic would be
used in the bottles, which would
offset some of the increases in the
prices of materials.
The firms first-half dividend
was raised by eight per cent to
7.3p a share.
The companys shares rose by
around two per cent after the
results were reported. Its shares,
which plunged to just over 10 in
July after supply chain problems,
closed at 12.10.
AG Barr sales hold up despite poor summer
CONSUMER
ANALYSIS l AG Barr
p
1,240
1,200
1,160
1,210.00
27 Sept
GAME Group is pinning its hopes on
a bumper Christmas after seeing its
first half losses double to 51m.
The video games retailer has suf-
fered from a lack of blockbuster
releases this year as well as the eco-
nomic maelstrom keeping people
away from the high street.
It reported a pre-tax loss of 51m
in the first half, compared with a
loss of 18.8m in 2010. Analysts
expect a full-year profit of around
19.5m. Like-for-like sales fell 9.9 per
cent to 558.8m.
It is now relying even more heavily
on the run-up to Christmas, in which
it traditionally takes around 40 per
cent of its annual revenues.
Heavyweight franchises includ-
ing the latest installment of the Call
of Duty series and the hotly antici-
pated Legend of Zelda: Skyward
Sword are expected to sell well,
prompting the firm to maintain its
full-year forecasts. It expects sales to
be flat or slightly down on last year,
although chief executive Ian
Shepherd said he is not unaware of
the risk in that number.
Investors appeared to endorse the
plan, sending Games shares up 14.8
per cent yesterday.
Keith Bowman, an equity analyst
at Hargreaves Lansdown, said:
Game remains an investment for
high risk investors.
Group debt has increased, the
dividend payment remains under
scrutiny, while successful online ini-
tiatives cannot come fast enough.
Game looks
to Christmas
as losses rise
MOSS Bros has returned to profit after
a surge in sales of wedding attire.
The retailer said yesterday it had
benefited from the Kate and William
effect as couples followed the royal
pair in tying the knot.
The group posted a better-than-
expected pre-tax profit of 2.2m in its
half yearly report following a 2.8m
loss for the same period last year.
Like-for-like sales were up by 15.4 per
cent, with revenue at 40m.
The company said Royal Ascot had
also sparked more sales, while its hire
business was making progress.
The figures were boosted by the
19.8m sale of 15 of its Hugo Boss fran-
chised stores and eight Cecil Gee
stores. The final payment of 4.3m is
due to come through in October.
Moss also opened a pilot branch in
Canary Wharf that presented its hire,
retail and bespoke businesses in one
store. The group plans to develop its
website over the next 18 months to
generate more online business ,as web
sales currently represent just one per
cent of revenue.
Chief executive Brian Brick said:
The royal wedding helped us and our
hire business is doing very well.
There have been rises in costs of
materials but we have managed to
avoid raising prices on many lines.
Moss Bros
moves back
into the black
The performance of Mosss wedding wear has boosted revenues Picture: VISMEDIA
BY STEVE DINNEEN
RETAIL
RETAIL
News
ANALYSIS l The Game Group
p
26
24
22
25.25
27 Sept
News
RBS
Ex-Savills chief executive Aubrey
Adams has been appointed as head of
property in the banks global restruc-
turing group, effective from 1
November. Adams, who stepped down
as chief executive of Savills in 2008, is
currently a non-executive director of
British Land and Max Property Group.
Brewin Dolphin
The private client investment manager
has appointed David Guild as a divi-
sional director of investment manage-
ment. Guild, formerly an executive
director at UBS, joins with Riccardo
Persona and Debbie Davies, two mem-
bers of his former team at the bank.
Alium Partners
John Bloor has returned to Alium
Partners as the director of its financial
services and finance practice. Bloor
first joined Alium Partners in 2007 and
left the firm in May 2010 to develop
the interim management offering of
advisory business Vantis, before mov-
ing on to FRP Advisory.
Marsh
Richard Waterer has been appointed
as head of Marsh Risk Consulting in
the UK and Ireland, based in London.
Waterer was previously head of the UK
operational risk practice at the firm.
Peugeot
Tim Zimmerman has been appointed as
managing director for the Peugeot
Motor Company, in a return to the UK
after spending 14 years working
abroad. Zimmerman started his career
with Peugeot in Coventry in
September 1986, rising to his current
role of general manager of Peugeots
operations in China.
Eversheds
After four years as head of oil and gas
at the law firm, partner Stephen
Mackin has handed over the reins to
fellow partner David Sellers. Based in
Paris, Sellers specialises in upstream
and downstream oil and gas work and
energy projects.
Jones Lang LaSalle
Tracey Byer has been appointed to lead
the firms markets corporate solutions
initiative in the UK. Byer joins from DTZ,
where she was most recently head of
sales for UK property management.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
Progress on debt
crisis lifts stocks
U
S stocks rose for a third day yes-
terday on efforts by Eurozone
officials to solidify the regions
rescue fund and alleviate a sov-
ereign debt crisis, boosting optimism.
But equities ended off their highs
for the day after a report suggested
cracks were emerging in a previously
agreed deal to tackle the crisis.
A successful solution to Europes
sovereign debt crisis would take the
pressure off banks worried about
funding and remove a threat to eco-
nomic growth. Rising hopes for an
agreement have helped push the S&P
500 up more than four per cent since
Thursdays close.
The Dow Jones industrial average
finished up 146.83 points, or 1.33 per
cent, at 11,190.69. The Standard &
Poors 500 Index was up 12.44 points,
or 1.07 per cent, at 1,175.39. The
Nasdaq Composite Index was up 30.14
points, or 1.2 per cent, at 2,546.83.
The S&P materials index was up
2.1 per cent and an S&P index of ener-
gy stocks added 1.5 per cent as com-
modity prices rallied on hopes of a
solution in Europe. Mining and ener-
gy shares were the top performers
among large-cap stocks.
While European officials have con-
sidered various approaches to maxi-
mize the bailout fund and to
recapitalize banks, substantial politi-
cal hurdles to sealing the deal
remain.
Market volatility could remain
high as traders react to headlines and
attempt to gauge the commitment of
governments and institutions as they
work to prevent a Greek default. US
equities have been highly sensitive to
Europes debt issues in recent weeks.
The S&P has gained 3.4 per cent so
far this week, after losing 6.5 per cent
on European-led fears the previous
week. That week was also the Dow's
worst since October 2008 during the
thick of the financial crisis.
Stocks also got a boost as investors
rebalanced their portfolios in the last
days of the quarter. The wide gap in
performance between equities and
bonds, favoring government debt so
far this quarter, may partly reverse.
All these end-of-quarter issues are
amplifying the moves that weve been
seeing in stocks, said Paul Simon,
chief investment officer at Tactical
Allocation. I dont have a lot of faith
in the moves weve been seeing.
Accenture, a tech services compa-
ny, rose 3.5 per cent in extended trad-
ing after the markets close and it
reported quarterly earnings that beat
expectations.
Research in Motion surged 4.5 per
cent on speculation that investor Carl
Icahn had taken a stake in the firm.
B
RITAINS top share index
gained strongly yesterday, post-
ing its biggest one-day percent-
age gain for 16 months, boosted
by a rally from commodity stocks and
advances by banks on increased
hopes that European leaders will take
decisive action to alleviate the
region's debt crisis encouraged
investors.
Banking stocks, among the most
sensitive to the twists in the
Eurozone debt saga, extended
Mondays gains, led by Royal Bank of
Scotland and Barclays, up 7.1 per cent
and 5.6 per cent respectively.
There does seem to be a slightly
bizarre excuse behind the gains today
rumours that Europe will expand
the EFSF. If so, its a rally built on
hope rather than anything concrete.
But to be honest, it is mainly to do
with our old friend end-quarter win-
dow dressing, as it's been such a big
quarter, said David Morrison, market
strategist at GFT Global.
The FTSE 100 index closed 204.68
points, or four per cent higher at
5,294.05, its biggest one-day percent-
age gain since May 2010.
As a turbulent month and quarter
draw to a close, the blue chip index
was currently down about two per
cent in September, and had fallen by
around 11 per cent since the end of
June.
Technically speaking were pretty
much still stuck in a range of 5,400 to
the topside and 5,050 at the bottom.
We are also almost smack on the 38.2
pct Fibonacci retracement level of
5,260-70 from the sell-off in August
this year, so there should be a little
cheer if we close above that, GFTs
Morrison added.
Miners were the biggest blue chip
gainers, having been the major fallers
on Monday, with Antofagasta stand-
ing out, up 10.7 per cent, as copper
rebounded from a 14-month low hit
in the previous session.
The gold price also rallied after
recent sharp falls, helped by an easier
dollar, with Fresnillo adding 10.3 per
cent as Citigroup upgraded it to
hold on valuation grounds.
Vedanta Resources was the top
FTSE 100 gainer, ahead 11.8 per cent.
The board of India's state-run Oil and
Natural Gas Corp has decided to issue
a no-objection certificate for
Vedanta's deal to buy a majority stake
in oil and gas explorer Cairn India.
The stake seller Cairn Energy
gained 5.2 per cent.
Other energy issues also pushed
higher as crude rebounded over four
per cent higher, with BP and BG
Group up 5.2 per cent and 6.7 per
cent respectively.
Among individual blue chip risers,
engineer Weir Group added 5.8 per
cent as Goldman Sachs reiterated its
Conviction Buy list rating on the
stock, which was the worst performer
in its capital goods universe last week.
On the second-line, emerging mar-
kets doorstep lender International
Personal Finance was the top FTSE
250 gainer, up 14.7 per cent after
JPMorgan Cazenove upgraded its rat-
ing to neutral from underweight
on valuation grounds.
Topps Tiles was the top rise in the
FTSE All-Share, adding more than 25
per cent on a better-than-expected
update.
You have to stress the importance
of it being the quarter-end on Friday,
particularly as the market has rallied
into the month-end six out of eight
times so far this year, only to be fol-
lowed by sharp falls straight after-
wards, but its all linked to short
positions and derivatives with very
little cash trading, said one London-
based trader.
FTSE bounces four per cent
as hope for euro plan grows
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 Easyjet
370
350
330
310
Jul Aug Sep
p
357.40
27 Sept
EASYJET
UBS rates the budget airline buy with a target price of 435p. The broker
has upgraded its forecasts in light of a positive pre-close update, and now
expects pre-tax profits this year to reach 250m. While UBS thinks there is
further upside to come from the firms valuation and dividend, it leaves its
forecasts for 2012 unchanged given uncertain fuel costs and currency move-
ments.
ANALYSIS l Aberdeen Asset Management
230
210
190
170
Jul Aug Sep
p 181.8
27 Sept
ABERDEEN ASSET MANAGEMENT
Morgan Stanley rates the asset manager overweight and has raised its tar-
get price from 226p to 230p. The broker thinks greater fund flow resilience
has driven assets under management above forecasts, as shown by the firms
results on Monday. At nine times 2012 earnings, Morgan Stanley reckons the
firms shares are trading at a 10 per cent discount to the sector and that its
risk-reward balance remains attractive.
ANALYSIS l Bumi
1,200
1,100
1,000
900
Jul Aug Sep
p
870.00
27 Sept
BUMI
Nomura has initiated coverage of the mining group with a buy rating and a
target price of 14. The broker thinks the firm formerly known as Vallar is
Londons top opportunity to gain exposure to thermal coal, and expects the
management team to buy up more assets to diversify the firm. Nomura
expects to see debt reduction and organic growth, which could act as cata-
lysts. It adds that the firms structure could be simplified to help unlock value.
27Jun 15Jul 4Aug 14Sep 24Aug
6,200
5,400
5,000
5,800
ANALYSIS l FTSE
5,294.05
27 Sept
Nataxis
Henrik Warebon (pictured) has joined Nataxis
as global head of commodities to lead com-
modities activities within the fixed income,
commodities and treasury department.
Warebon started his career at Goldman Sachs,
followed by roles at Lehman Brothers, Hetco
and BP, where he was global head of crude oil
trading. In addition, Andy Gooch, head of com-
modity sales and brokerage at Nataxis, has
been appointed to lead the commercial devel-
opment of the firms clearing project.
PHASE EIGHT, JUBILEE PLACE
AUTUMN
WINTER
FASHION
SHOWS
Friday 30th September,
Saturday1st & Sunday 2nd October
* terms & conditions apply
EXCLUSIVE DISCOUNTS
*
20% OFF
Amerigo Vespucci, Aquascutum, Aspinal of London,
Austin Reed, The Body Shop (on purchases of 25 or more),
Cards Galore, Churchs English Shoes (exclusions apply),
Crabtree & Evelyn (on purchases of 25 or more),
David Clulow Opticians, Dune, Fiorelli,
French Connection, The Gourmet Hotdog Company,
Hackett, Hobbs, Jaeger London, Jones Bootmaker,
Karen Millen, Kurt Geiger, L.K.Bennett, Levis, Mint, Myla,
1LFKROVRQ*ULIQ (services only), Oasis, Phase Eight,
Reebok Sports Shop, SeanHanna (services only),
Sweaty Betty, Sweet Couture (on purchases of 10 or more),
Tie Rack, Toni & Guy (services only), Warehouse,
Yoomoo Frozen Yogurt

15% OFF
Browns London, Carat*, Gant, Gap,
LOccitane (on purchases of 25 or more), Moss,
Robert Dyas, Runners Need (on purchases of 30 or more),
Sri Nam (Friday only), Ted Baker,
Vision Express, The White Company
10% OFF
Artisan Fine Art, Charles Fish, Charles Tyrwhitt,
Choice (exclusions apply), Fat Face, Nails Inc,
Paperchase, Reebok Spa, Scribbler, T.M.Lewin
OTHER OFFERS AVAILABLE AT:
David M Robinson, Freedom Back Clinics,
Frontispiece The Gallery, Goldsmiths,
Jamies Italian, Jessops Photo, Links of London, Montblanc,
The Neem Tree, Pandora, The Parlour, Reebok Sports Club,
Smilepod, Thomas Pink, Tumi
Celebrate the arrival of Autumn at Canary Wharf
with fashion shows featuring this seasons
latest trends and discounts of up to 20%.
T
H
I
S

W
E
E
K
E
N
D
22
The Forum
L
EAKED European Commission propos-
als for regulatory changes to the audit
market hit the front page yesterday.
They represent a significant market
intervention and while they have not
changed substantially from a Green Paper
published last year, if implemented they
would risk undermining quality and confi-
dence in the audit market.
Of course, this is an important debate to
have. The auditing profession, like every
part of the financial system, has to learn les-
sons from the recent financial crisis.
Audit and audit firms must continue to
develop to meet the changing needs of capi-
tal markets and to be ever more transparent
and accountable.
Some aspects of the proposed reforms are
to be welcomed. In particular, we support
measures that will promote high quality
audits and a dynamic and vibrant profes-
sion, and most importantly confidence in
the financial information being reported to
the markets.
For example, we welcome:
l The idea of auditor EU passports, which
would improve the portability of auditing
qualifications within the European Union to
increase mobility for suitably qualified pro-
fessionals.
l Removing any artificial barriers to entry
for smaller audit firms such as legal
covenants which require the use of a large
audit firm.
l We also support moves to promote greater
audit committee transparency in selection
of audit and non-audit services.
l Increased dialogue between the regulators
and auditors would simultaneously
enhance the value of audit while addressing
other concerns around independence and
market structure.
PwC will support all evidence-based leg-
islative reforms that would enhance audit
quality and remove any barriers, real or per-
ceived, that might prevent the operation of
a truly competitive audit market.
Furthermore, many of the Commissions
proposed governance reforms reflect
aspects of the model that has been imple-
mented in the UK.
We have to ensure that the focus of the
debate remains on audit quality and build-
ing confidence in reported financial infor-
mation, avoiding any superficially attractive
proposals which could in practice have pre-
cisely the opposite effect.
AUDIT-ONLY
In particular, the proposal to establish
audit only firms would represent a very
significant market intervention that could
create severe disruption and undermine
quality and confidence. This, as well as a
number of the other proposals which were
included in the original Commission Green
Paper, do not reflect the opinions of many
stakeholders who responded to that consul-
tation. Furthermore, many of these ideas
were debated and rejected by the European
Parliament in their Own Initiative Report
that was adopted as recently as 13
September 2011.
The simple fact is: you do not solve any
perceived lack of auditor independence by
moving to audit only firms.
We believe this argument is flawed, but
we also recognise that the perception of
auditors lacking independence is one that
we have not done enough to counter by
being more open about what it is that we do
in terms of challenge and scepticism.
I believe all stakeholders would recognise
that, in the context of todays fragile mar-
kets, it is critical to avoid not only under-
mining confidence, but also the
unwarranted additional costs that could
arise. We must, at all costs, avoid imposing
reform simply for reforms sake, imposing
any changes which could weaken the capital
markets system and dent audit quality.
Changes must be not only informed and
considered, but measured.
UNDERMINED
Many of the proposed reforms that are now
being reported in the media would, if adopt-
ed, in my view undermine our ability to
deliver quality audits, seriously impact the
attractiveness of the audit profession to
future generations and would likely have
serious unintended consequences for busi-
ness and the wider capital market.
I recognise that there will be some who
might say that the largest auditing firms are
protecting their own interests. So far we
have reports of how the Commission
appears to have set out its stall. There is a
long way to go before any of these proposals
could be adopted and as the discussions
move forward I believe we will increasingly
hear from businesses in the UK, and indeed
across Europe, that support our view that
we should avoid reform just for reforms
sake. It is also vital that member states fully
engage as the Commission takes its propos-
als to MEPs and Council of Ministers.
We fully accept the European
Commissions statement that the status
quo is not an option, but also believe that
any reforms must be supported by evidence
of their use to those operating in the capital
markets and also the investors who drive
these markets.
Ian Powell is chairman and senior partner at
PwC UK.
You dont solve any perceived
lack of auditor independence
by moving to audit-only firms
EC proposals to reform the
audit market are seriously
flawed, says PWC chairman
cityam.com/forum
IAN POWELL
23
Top entrepreneur
strongly opposes
the oppositions
vision for Britain
Miliband shows
why Labour are
not fit for office
E
D MILIBAND has just demonstrated why
he is unfit to lead this country. Yesterday,
he delivered a speech which showed he
doesnt really understand business, and
probably doesnt even believe in capitalism.
It was an oration full of vague phrases and
void of specifics, but the sentiment was clear.
He is suspicious of big business, private equity
and the profit motive, and will choose compa-
nies to favour and others to extort.
It was packed with emotional weasel-words
like predators and asset strippers. A
reminder of what the Miliband family have
always thought of the wealth creators.
If any rational listeners in the private sector
were wondering who calls the shots within the
Labour party then now they know: the union
paymasters.
The entire delivery was designed to appease
his militant bosses. As ever, it was a list of wish-
ful thinking, and entirely free from any practi-
cal proposals based on facts or experience.
Miliband talked of productivity and support-
ing some British companies, but had no sug-
gestions for how he would motivate
entrepreneurs and encourage investment.
Investors in Britain should take note: Labour
plans to meddle much more in business, tax-
ing and regulating very heavily companies it
doesnt like. Woe betide any risk takers and
funders who thought the UK was a level play-
ing field; if Labour take office, then capricious
and punitive legislation appears to be the
order of the day. In fact, the speech was a use-
ful reminder of just how profoundly confused
and incompetent the opposition are when it
comes to economic affairs.
Miliband has the brass cheek to suggest the
nation turns to Ed Balls, his shadow chancellor,
for advice in our hour of need. This is the same
Balls who was a key confidant to Gordon
Brown, the politician who endowed the coali-
tion with the most catastrophic economic
inheritance in British history.
It was the same Balls and Brown who saw
Britains public spending rise vertiginously to
comprise more than half of GDP; who bloated
the state payroll with non-jobs as a form of ger-
rymandering; who pushed up income tax to 50
per cent as a form of envy politics; and who
ennobled their close chum Sir Fred Goodwin
the chief executive who almost single-handed-
ly bankrupted the British banking system.
This was the government that included
Liam Byrne, the treasury secretary who left a
note for his successor saying: Theres no
money left... Good luck! Byrne thought it very
funny that Labour had spent so profligately in
the good times that there was no surplus for
the recession they helped create. How
grotesque that our taxes were in the hands of
such reckless, economically illiterate maniacs.
If the electorate allow Miliband and his gang
of ugly socialists back into power, then we can
consign Britain to a future of no growth, per-
manent deficits, a collapsing currency, eye-
watering taxes and a massive brain drain. In a
ferociously competitive world, we cannot allow
the party chiefly responsible for the current
economic mess to take control once more. One
more dose of their toxic medicine and it would
be time to man the lifeboats.
Luke Johnsons new book Start It Up: Why Running
Your Own Business is Easier Than You Think is pub-
lished by Portfolio Penguin.
Kudrin can return
Russian finance minister Alexei
Kudrin being sacked by President
Dimitry Medvedev is not nearly
as humiliating as President
Medvedev being sacked by his
Prime Minister, Vladimir Putin.
The Kudrin dismissal is a short-
term disaster for Russia. That the
country did not collapse during
the global financial crisis was
almost entirely due to his eco-
nomic savvy. He has long been
the most respected man in the
Kremlin for western businessmen.
But Kudrins future looks brighter
than Medvedevs. He is Putins
man and the one thing we know
for sure is that Putin will be presi-
dent. It is not beyond the realm
of possibility that Putin, to
assuage western concerns about
his own presidency, will make
Kudrin his Prime Minister.
A bad week for Medvedev.
Maybe not quite so bad for
Kudrin.
James Nixey
Chatham House
Speak your mind
The Forum is open for you to take
part. Got a sharp comment on
one of todays columns or rapid
response topics? Do you have
another subject relating to busi-
ness and the economy you want
to share your opinion on? We
want to hear your views.
Readers are invited to comment
on the web: cityam.com/forum;
by email: theforum@cityam.com;
and on Twitter: @cityamforum.
The best responses will be
reprinted in The Forum.
RAPID RESPONSES
In association with
LUKE JOHNSON
BY JAMIE WHYTE
The Forum
V
INCE Cables
Depar t ment
for Business
announced a
plan last week to give
the UKs 50 largest
firms ministerial
business buddies.
For example, Nissan
will make friends
with enterprise minister Mark Prisk, Vodafone
will get chummy with culture secretary Jeremy
Hunt and British Gas will have Cable himself
as a ministerial pal.
What will government ministers do for their
big business buddies? The Department for
Business has been somewhat vague. But the
answer must be favours. Thats what buddies
do for each other. And what else could entice
busy corporate executives, who surely already
have friends, into otherwise unrewarding rela-
tionships with the likes of Cable?
Do not let the words business and bud-
dies fool you; this is not a pro-business policy.
If the Football Association used its powers to
do Manchester United favours, they would not
be helping football. Similarly, ministers do not
help business by using their powers to help
particular businesses.
Like football, business thrives on competi-
tion. It is the engine of progress, inspiring
effort, innovation and the elimination of bad
practice. But what is good for business is bad
for individual businesses. Competition is the
only serious problem a business faces.
Eliminate it and, no matter how poor the
favoured firms performance, profit is assured.
A business with a ministerial buddy will seek
to use this influence to stifle competition,
helping itself but damaging the economy.
Indeed, this would happen even without the
favoured companys executives asking for it.
Imagine Prisk, Nissans ministerial buddy,
approaching his annual performance review
and fretting about what Nissan has to show for
all his friendship. What can he do?
As a government minister, only two things.
He can change the arrangement of regulatory
burdens faced by companies in a way that
favours Nissan or he can subsidise them at tax-
payers expense. Ministerial business buddies
are effectively employed to tilt the playing
field in favour of their pals or, to put it the
other way around, against everyone else. They
have nothing else to offer.
The avowed goal of the buddy policy is to
boost investment. Alas, this is unlikely. The 50
favoured firms will attract investment, of
course, but all the smaller firms and start-ups
that bear the cost of this favouritism will
become less attractive. Nor will it be a zero-
sum transfer of investment from new and
smaller companies to the biggest 50 incum-
bents. By generally increasing the political risk
of investing in British firms, the policy will
increase their cost of capital and hence
decrease aggregate investment.
In 2006, inspired by the eponymous TV pro-
gramme, Tony Blair suggested imposing state
employed super nannies on families that
government officials deemed dysfunctional.
His choice of terminology was sufficiently hon-
est to kill the idea. We already suffer the nanny
state. Who wants to live in a super nanny state?
Similarly straightforward language should
kill off this idea. Crony capitalism, anyone?
Jamie Whyte is a management consultant and
author of Crimes Against Logic (McGraw Hill, 2004).
Ministerial favouritism
isnt business-friendly
Email: theforum@cityam.com
Twitter: @cityamforum
Building the Olympic family: Adecco
has its whole team at work on 2012
Steve Girdler lays out
the business case for
becoming the official
recruiter for Londons
organising committee
Q.
WHAT WAS YOUR BRANDS PRIMARY
REASON FOR BEING INVOLVED WITH
THE GAMES?
A.
Weve been involved in a number of
Games in the past. In this one weve
taken a step up as a Tier Two spon-
sor, its the biggest Olympic commitment
Adecco has ever made. There are a number
of reasons weve done it. One is that the
recruitment business is very fragmented
the top five firms are barely 20 per cent of
the market so it can be hard to get your
businesss nose above the parapet. This
was an opportunity for us to have a unique
voice. Secondly, the world of recruitment
is sometimes not seen as important as
some others in business, but in reality
we provide people the most
important part of any business.
This was a way to demonstrate
that we could recruit all the
people who are going to put
on the greatest show on
earth the biggest post-war
mobilisation of labour the
UK has seen and just by tak-
ing on that role we can
demonstrate a strategic role
for a business with our expert-
ise and skill: if we can do that for
the Olympic Games, just think
what we can do for other businesses.
Q.
HOW DID YOU STRUCTURE THE CASE
FOR INVOLVEMENT TO THE BOARD?
A.
I wasnt there at the time, but its a
hard-nosed business decision. We
had to quantify the incremental
business we could get, both during the
Games and post-Games. It was a chance to
demonstrate that we can deliver this most
complex of projects and tear it all down
again, but it was also good for internal
engagement. Weve been through two
acquisitions since signing up, Spring
Group in 2009 and MPS Group in 2010,
and this is a common cause that our peo-
ple can feel proud of and feel a part of. We
have volunteers, ten torchbearers will be
representing Adecco theres a massive
amount of internal engagement. Were
holding an Olympic-themed conference in
February, and weve purchased tickets for
internal competitions and incentives.
Q.
WHAT WAS THE
BIGGEST
SURPRISE?
A.
We didnt go in thinking diversity
was going to be such a major part of
what we were going to do, but we
realised early on that this was such an
important commitment of LOCOGs to
make London 2012 the most inclusive
Games ever and we saw too that there
was a chance for us as an industry to use
the creative spark of the Games to improve
and develop practical tools to allow us and
our clients to deliver a more diverse work-
place. I believe that will have a legacy for
us and help make UK business stronger
and more competitive in the marketplace.
Q.
HOW HAVE YOU STRUCTURED YOUR
BUSINESS TO MAXIMISE
OPPORTUNITIES?
A.
Perhaps differently to a number of
others, we havent put an Olympic
team together apart from the
LOCOG team we have onsite there. I head
the Olympic partnership up, but we use
existing departments to deliver the pro-
grammes so theres not a separate team
and everyone else feeling a little disassoci-
ated. We havent set up a separate struc-
ture other than me.
Q.
HOW DID THE ANNOUNCEMENT THAT
YOU WERE INVOLVED AFFECT YOUR
BUSINESS?
A.
Right from the 2009 announcement
theres been a significant reaction
from employees its very exciting
for us all to be part of this once in a life-
time opportunity, and as I say, thats why
weve set up a structure that means every-
one can be part of London 2012. In terms
of business opportunities, weve been able
to build relationships with the other spon-
sors, and thats one of the real positives
you start to look at areas you can work
together on. Adeccos a global organisa-
tion and so are many of the others in this
Olympic family, and were building strong
business relationships that will last
beyond the Games. Were involved in plan-
ning for Sochi in 2014 and Rio 2016 and so
are many of the others, so those relation-
ships will continue.
Q.
HOW WILL YOU LEVERAGE YOUR
SPONSORSHIP AFTER THE GAMES?
A.
Its not just about the employment
opportunities at LOCOG. It has said
theres some 200,000 roles that will
be delivered as part of the Games and
thats our bread and butter we wanted
the opportunity to be part of that from a
recruitment perspective. And we want to
make sure the talented, diverse, local
workforce we bring together for the
Games isnt lost afterwards. Were work-
ing with the six host boroughs and the
Olympic Park Legacy Company to ensure
that happens, and we launched
jobsforthegames.co.uk, the official jobs
board for the Games, earlier this year and
that will continue for the foreseeable
future. The Olympics is a huge opportuni-
ty and companies should be embracing it
and gearing up now.
Steve Girdler is director of the London 2012
partnership for Adecco.
Weve been
able to build
relationships
with other
sponsors that
will continue.
303 DAYS TO GO
COUNTDOWN
TO THE LONDON
2012
OLYMPIC
GAMES
Q A
&
Business Features
24
WORDS BY MARC SIDWELL
LON GD ONCE FIX AM...........1671.00 56.00
SILVER LDN FIX AM ..................32.01 2.20
MAPLE LEAF 1 OZ ....................34.16 1.12
LON PLATINUM AM................1582.00 40.00
LON PALLADIUM AM...............647.00 19.00
ALUMINIUM CASH .................2195.00 25.50
COPPER CASH ......................7225.00 -55.00
LEAD CASH...........................1992.00 -53.00
NICKEL CASH......................18375.00 455.00
TIN CASH.............................20795.00 1700.00
ZINC CASH ............................1858.00 -83.00
BRENT SPOT INDEX................104.42 -0.69
SOYA .....................................1259.75 1.75
COCOA..................................2678.00 44.00
COFFEE ......................................0.00 0.00
KRUG.....................................1724.10 58.90
WHEAT ....................................158.88 2.00
AIR LIQUIDE........................................88.67 3.39 100.65 80.90
ALLIANZ..............................................70.18 5.17 108.85 56.16
ANHEUS-BUSCH INBEV ....................39.89 1.15 46.33 33.85
ARCELORMITTAL...............................12.55 0.99 28.55 10.47
AXA........................................................9.81 0.84 16.16 7.88
BANCO SANTANDER...........................6.18 0.26 9.67 5.15
BASF SE..............................................47.01 1.61 70.22 42.19
BAYER.................................................42.12 1.02 59.44 35.36
BBVA......................................................6.24 0.35 10.19 5.03
BMW ....................................................53.95 3.15 73.85 47.82
BNP PARIBAS.....................................30.05 3.73 59.93 22.72
CARREFOUR ......................................16.76 1.01 36.06 14.66
CRH PLC..............................................11.65 0.65 17.40 10.28
DAIMLER.............................................34.45 2.31 59.09 30.93
DANONE..............................................46.23 1.24 53.16 41.92
DEU.BOERSE OFFRE ........................40.85 1.14 55.75 37.03
DEUTSCHE BANK..............................28.29 3.17 48.70 20.79
DEUTSCHE TELEKOM.........................8.77 0.31 11.38 7.88
E.ON.....................................................16.35 1.00 25.54 12.50
ENEL......................................................3.24 0.22 4.86 2.81
ENI .......................................................13.18 0.64 18.66 11.83
FRANCE TELECOM............................12.20 0.48 17.45 11.12
GDF SUEZ ...........................................22.53 1.50 30.05 18.32
GENERALI ASS...................................11.95 0.49 17.05 10.34
IBERDROLA..........................................5.10 0.22 6.50 4.29
INDITEX ...............................................65.49 0.29 66.60 50.92
ING GROEP CVA...................................5.47 0.47 9.50 4.21
INTESA SANPAOLO.............................1.16 0.06 2.53 0.85
KON.PHILIPS ELECTR.......................13.77 0.52 25.45 12.01
L'OREAL..............................................74.58 2.41 91.24 68.83
LVMH..................................................109.10 4.25 132.65 97.67
MUNICH RE.........................................90.84 5.21 126.00 77.80
NOKIA....................................................4.23 0.26 8.49 3.33
REPSOL YPF.......................................20.12 1.19 24.90 17.31
RWE.....................................................27.80 1.97 55.88 21.22
SAINT-GOBAIN...................................29.67 2.10 47.64 26.07
SANOFI ................................................49.52 1.42 56.82 42.85
SAP......................................................37.84 1.44 46.15 32.88
SCHNEIDER ELECTRIC.....................40.20 2.31 61.83 35.94
SIEMENS .............................................69.37 2.96 99.39 62.13
SOCIETE GENERALE.........................20.50 2.95 52.70 14.32
TELECOM ITALIA..................................0.80 0.03 1.16 0.70
TELEFONICA ......................................14.25 0.42 19.69 12.50
TOTAL..................................................32.84 1.53 44.55 29.40
UNIBAIL-RODAMCO SE...................133.80 6.15 162.95 124.05
UNICREDIT............................................0.77 0.05 2.03 0.64
UNILEVER CVA...................................23.45 0.33 24.08 20.82
VINCI ....................................................32.91 2.01 45.48 29.49
VIVENDI ...............................................15.60 0.80 22.07 14.10
VOLKSWAGEN VORZ ......................108.30 6.75 152.20 81.80
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5294.05 204.68 4.02
FTSE 250 INDEX . . . . . . . 10127.13 287.89 2.93
FTSE UK ALL SHARE . . . . 2738.53 101.07 3.83
FTSE AIMALL SH . . . . . . . . 723.14 15.97 2.26
DOWJONES INDUS 30 . . 11190.69 146.83 1.33
S&P 500. . . . . . . . . . . . . . . . 1175.38 12.43 1.07
NASDAQ COMPOSITE . . . 2546.83 30.14 1.20
FTSEUROFIRST 300 . . . . . . 938.38 40.80 4.55
NIKKEI 225 AVERAGE. . . . 8609.95 235.82 2.82
DAX 30 PERFORMANCE. . 5628.44 282.88 5.29
CAC 40 . . . . . . . . . . . . . . . . 3023.38 164.04 5.74
SHANGHAI SE INDEX . . . . 2415.05 21.87 0.91
HANG SENG. . . . . . . . . . . 18130.55 722.75 4.15
S&P/ASX 20 INDEX . . . . . . 2422.60 88.40 3.79
ASX ALL ORDINARIES . . . 4063.50 135.90 3.46
BOVESPA SAO PAOLO. . 53920.36 172.84 0.32
ISEQ OVERALL INDEX . . . 2520.31 78.98 3.24
STI . . . . . . . . . . . . . . . . . . . . 2725.91 71.60 2.70
IGBM. . . . . . . . . . . . . . . . . . . 861.02 32.82 3.96
SWISS MARKET INDEX. . . 5564.62 163.61 3.03
Price Chg %chg
3M........................................................76.28 1.09 98.19 72.00
ABBOTT LABS ...................................51.20 0.45 54.24 45.07
ALCOA ................................................10.48 0.03 18.47 9.91
ALTRIA GROUP..................................26.42 0.42 28.13 23.20
AMAZON.COM..................................224.21 -5.64 244.00 151.40
AMERICAN EXPRESS........................47.08 -0.48 53.80 37.33
AMGEN INC.........................................56.52 1.09 61.53 47.66
APPLE...............................................399.26 -3.91 422.86 275.00
AT&T....................................................28.67 0.33 31.94 27.20
BANK OF AMERICA.............................6.48 -0.12 15.31 6.00
BERKSHIRE HATAW B.......................72.07 -0.02 87.65 65.35
BOEING CO.........................................62.78 0.77 80.65 56.01
BRISTOL MYERS SQUI ......................31.24 0.30 31.78 20.05
CATERPILLAR....................................77.67 0.82 116.55 72.60
CHEVRON...........................................93.54 2.05 109.94 78.71
CISCO SYSTEMS................................16.07 0.08 24.60 13.30
CITIGROUP.........................................26.99 0.27 51.50 23.19
COCA-COLA.......................................69.57 0.81 71.77 58.23
COLGATE PALMOLIVE......................91.07 0.18 94.89 73.62
CONOCOPHILLIPS.............................64.26 0.13 81.80 55.35
CVS/CAREMARK................................34.69 0.29 39.50 29.45
DU PONT(EI) DE NMR........................42.26 0.72 57.00 40.21
EXXON MOBIL....................................72.91 1.19 88.23 61.27
GENERAL ELECTRIC.........................15.76 0.19 21.65 14.72
GOOGLE A........................................539.34 7.45 642.96 473.02
HEWLETT PACKARD.........................23.59 0.88 49.39 19.92
HOME DEPOT.....................................33.88 -0.12 39.38 28.13
IBM.....................................................177.71 3.20 185.63 132.34
INTEL CORP .......................................22.54 0.30 26.78 18.77
J.P.MORGAN CHASE.........................31.57 -0.08 48.36 28.53
JOHNSON & JOHNSON.....................63.82 1.13 68.05 57.50
KRAFT FOODS A................................34.93 0.67 36.30 24.30
MC DONALD'S CORP ........................89.74 0.40 91.22 72.14
MERCK AND CO. NEW......................32.14 0.53 37.68 29.47
MICROSOFT........................................25.67 0.23 29.46 23.65
OCCID. PETROLEUM.........................78.45 1.46 117.89 69.90
ORACLE CORP...................................30.13 0.42 36.50 24.72
PEPSICO.............................................62.43 0.54 71.89 59.25
PFIZER ................................................17.75 -0.02 21.45 16.25
PHILIP MORRIS INTL .........................64.71 0.13 72.74 55.10
PROCTER AND GAMBLE ..................63.26 0.72 67.72 56.57
QUALCOMM INC ................................51.78 1.20 59.84 42.45
SCHLUMBERGER ..............................63.42 0.15 95.64 58.77
TRAVELERS CIES..............................49.24 0.90 64.17 46.62
UNITED TECHNOLOGIE ....................73.15 1.60 91.83 67.12
UNITEDHEALTH GROUP...................49.45 0.64 53.50 33.94
VERIZON COMMS ..............................36.89 0.53 38.95 31.60
WAL-MART STORES..........................52.03 0.20 57.90 48.31
WALT DISNEY CO ..............................31.16 0.86 44.34 29.05
WELLS FARGO & CO.........................24.96 0.17 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 ..................0.910 0.00
LIBOR Euro - 12 months ................2.032 0.00
LIBOR USD - overnight...................0.145 0.00
LIBOR USD - 12 months.................0.851 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..........................3.110 0.12
European repo rate.........................0.750 0.00
Euro Euribor ....................................1.211 0.01
The vix index ...................................35.74 3.28
The baItic dry index ........................1.928 0.03
Markit iBoxx...................................230.76 -2.07
Markit iTraxx..................................196.18 9.49
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.3634 0.0106
C/ 0.8698 0.0001
C/ 104.42 1.4590
/C 1.1508 0.0030
/$ 1.5677 0.0123
/ 120.09 1.2399
FTSE 100
5294.05
204.68
FTSE 250
10127.13
287.89
FTSE ALLSHARE
2738.53
101.07
DOW
11190.69
146.83
NASDAQ
2546.83
30.14
S&P 500
1175.38
12.43
RPC Group . . . . . . . .318.3 3.3 384.8 215.4
Smiths Group . . . . . .948.5 26.5 1429.0 907.5
Brown (N.) Group . . .278.5 3.1 311.2 232.3
Carpetright . . . . . . . . .493.9 1.9 835.5 476.0
Debenhams . . . . . . . . .58.5 1.2 77.4 51.2
Dignity . . . . . . . . . . . .832.0 2.0 854.5 633.0
Dixons RetaiI . . . . . . .11.6 0.1 28.5 10.6
DuneImGroup . . . . . .472.5 9.9 550.0 380.0
HaIfords Group . . . . .318.6 2.6 459.7 268.6
Home RetaiI Group . .120.0 4.0 235.0 105.1
Inchcape . . . . . . . . . .297.3 18.0 425.4 268.1
JD Sports Fashion . .860.0 0.0 1030.0 753.5
Kesa EIectricaIs . . . . .84.7 2.2 174.0 80.0
Kingfisher . . . . . . . . .251.0 9.4 287.1 217.0
Marks & Spencer G . .332.5 5.5 427.5 301.8
Mothercare . . . . . . . .331.2 -2.2 627.5 317.3
Next . . . . . . . . . . . . .2592.0 45.0 2649.0 1868.0
Sports Direct Int . . . .221.0 -0.7 266.2 125.5
WH Smith . . . . . . . . . .504.5 9.4 523.0 433.8
Smith & Nephew . . . .590.0 9.0 742.0 521.0
Synergy HeaIth . . . . .873.0 -17.5 981.0 719.0
Barratt DeveIopme . . .83.7 3.3 119.0 67.5
BeIIway . . . . . . . . . . . .617.5 8.0 753.5 511.0
YuIe Catto & Co . . . . .157.0 8.9 253.0 146.9
BaIfour Beatty . . . . . .259.6 7.0 357.3 228.6
Kier Group . . . . . . . .1273.0 25.0 1418.0 1097.0
Drax Group . . . . . . . .503.5 5.6 536.5 353.6
Scottish & Southe . .1300.0 19.0 1423.0 1108.0
Domino Printing S . .465.0 5.0 705.0 459.3
HaIma . . . . . . . . . . . . .323.8 6.2 429.6 305.5
Laird . . . . . . . . . . . . . .136.9 7.4 207.0 127.9
Morgan CrucibIe C . .252.1 22.1 357.1 211.5
Oxford Instrument . .810.0 10.0 1010.0 480.0
Renishaw . . . . . . . . .1055.0 39.0 1886.0 1016.0
Spectris . . . . . . . . . .1238.0 28.0 1679.0 1043.0
Aberforth SmaIIer . . .559.5 12.5 714.0 539.5
AIIiance Trust . . . . . .331.1 6.9 392.7 321.6
Bankers Inv Trust . . .372.0 7.0 428.0 356.5
BH GIobaI Ltd. GB .1209.0 0.0 1220.0 1058.0
BH GIobaI Ltd. US . . . .12.2 0.1 12.2 10.4
BH Macro Ltd. EUR . . .19.2 -0.0 20.1 15.8
BH Macro Ltd. GBP 2009.0 14.0 2070.0 1630.0
BH Macro Ltd. USD . . .19.2 0.1 20.1 15.8
BIackRock WorId M .625.0 21.0 815.5 602.9
BIueCrest AIIBIue . . .170.5 -1.0 176.2 162.4
British Assets Tr . . . .117.5 4.0 140.5 112.4
British Empire Se . . .442.5 -0.5 533.0 437.5
CaIedonia Investm .1539.0 34.0 1928.0 1480.0
City of London In . . .272.0 6.8 306.9 257.0
Dexion AbsoIute L . .135.0 -0.5 151.0 135.0
Edinburgh Dragon . .215.4 7.4 262.1 208.0
Edinburgh Inv Tru . . .455.2 18.1 492.2 414.9
EIectra Private E . . .1370.0 55.0 1755.0 1287.0
F&C Inv Trust . . . . . .280.9 8.0 327.9 268.6
FideIity China Sp . . . . .75.4 2.6 128.7 72.8
FideIity European . . .977.5 35.0 1287.0 937.5
HeraId Inv Trust . . . . .450.0 4.0 545.5 430.0
HICL Infrastructu . . . .115.9 -0.1 121.3 112.7
Impax Environment . .95.0 1.0 130.5 93.7
JPMorgan American .819.5 27.5 916.0 721.5
JPMorgan Asian In . .182.0 3.1 250.8 178.9
JPMorgan Emerging .506.0 23.0 639.0 483.0
JPMorgan European .750.5 6.0 983.5 701.0
JPMorgan Indian I . . .365.0 13.7 502.0 351.3
JPMorgan Russian .451.2 8.2 755.0 443.0
Law Debenture Cor . .341.5 12.3 385.0 309.8
MercantiIe Inv Tr . . . .921.5 25.0 1137.0 876.5
Merchants Trust . . . .372.6 9.6 431.8 348.7
Monks Inv Trust . . . .328.1 6.2 367.9 311.3
Murray Income Tru . .602.0 15.0 673.0 577.0
Murray Internatio . . .870.5 30.5 991.5 840.0
PerpetuaI Income . . .250.4 6.5 276.0 232.6
PoIar Cap TechnoI . .326.9 7.4 391.2 299.5
RIT CapitaI Partn . . .1217.0 27.0 1334.0 1110.0
Scottish Inv Trus . . . .447.5 8.1 524.0 423.5
Scottish Mortgage . .649.5 13.5 781.0 630.5
SVG CapitaI . . . . . . . .205.0 6.8 279.8 169.2
TempIe Bar Inv Tr . . .844.0 15.0 952.0 782.0
TempIeton Emergin .532.0 21.0 689.5 511.0
TR Property Inv T . . .162.5 3.0 206.1 154.5
TR Property Inv T . . . .74.1 1.6 94.0 69.5
Witan Inv Trust . . . . .432.2 9.7 533.0 420.0
3i Group . . . . . . . . . . .202.0 9.7 340.0 187.2
3i Infrastructure . . . .121.3 -0.2 125.2 112.9
Aberdeen Asset Ma .181.8 11.8 240.0 160.5
Ashmore Group . . . .352.0 10.9 420.0 301.5
Brewin DoIphin Ho . .124.8 4.3 185.4 120.5
CameIIia . . . . . . . . . .9300.0 172.510950.0 8900.0
CharIes TayIor Co . . .136.0 0.0 198.3 122.0
City of London Gr . . . .77.8 0.0 93.6 76.3
City of London In . . .360.8 0.8 461.5 329.5
CIose Brothers Gr . . .697.5 25.0 888.5 656.5
CoIIins Stewart H . . . .64.0 1.3 90.8 60.0
EvoIution Group . . . . .84.3 4.5 94.0 62.3
F&C Asset Managem .67.0 2.2 92.9 58.7
Hargreaves Lansdo .472.0 33.6 646.5 402.5
HeIphire Group . . . . . . .2.7 0.2 39.0 2.2
Henderson Group . . .111.8 2.2 173.1 108.5
Highway CapitaI . . . . .15.5 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .446.3 14.3 570.5 391.3
IG Group HoIdings . .455.0 10.4 553.0 393.6
Intermediate Capi . . .226.3 14.3 360.3 204.8
InternationaI Per . . . .225.3 28.8 388.8 196.5
InternationaI Pub . . . .114.8 0.5 118.3 108.6
Investec . . . . . . . . . . .374.2 16.7 538.0 357.5
IP Group . . . . . . . . . . . .45.0 -0.5 54.5 27.9
Jupiter Fund Mana . .207.0 4.0 337.3 184.9
Liontrust Asset M . . . .72.5 0.0 94.3 70.5
LMS CapitaI . . . . . . . . .59.5 0.0 64.8 44.8
London Finance & . . .21.5 0.0 23.5 16.5
London Stock Exch .842.5 15.5 1076.0 675.0
Lonrho . . . . . . . . . . . . .13.3 0.3 19.8 11.0
Man Group . . . . . . . . .239.6 12.0 311.0 178.0
Paragon Group Of . .153.3 6.7 206.1 134.6
Provident Financi . .1039.0 26.0 1124.0 728.5
Rathbone Brothers .1058.0 0.0 1257.0 840.5
Record . . . . . . . . . . . . .28.8 -0.5 51.0 20.3
RSM Tenon Group . . .22.5 0.0 66.3 21.3
Schroders . . . . . . . .1320.0 92.0 1922.0 1183.0
Schroders (Non-Vo .1074.0 74.0 1554.0 970.0
TuIIett Prebon . . . . . .362.0 7.9 428.6 329.8
WaIker Crips Grou . . .46.0 0.0 51.5 45.0
BT Group . . . . . . . . . .175.1 4.1 204.1 140.0
CabIe & WireIess . . . .38.1 -0.6 59.2 31.3
CabIe & WireIess . . . .31.4 1.9 76.9 29.5
COLT Group SA . . . .103.8 0.3 156.2 97.7
KCOM Group . . . . . . . .69.6 -1.2 84.0 47.5
TaIkTaIk TeIecom . . .130.7 3.7 168.3 119.8
TeIecomPIus . . . . . . .710.0 2.0 719.0 370.0
Booker Group . . . . . . .73.7 1.2 77.9 47.9
Greggs . . . . . . . . . . . .465.3 3.3 550.5 429.1
Morrison (Wm) Sup .291.3 4.2 308.3 262.7
Ocado Group . . . . . . . .98.5 7.5 285.0 91.0
Sainsbury (J) . . . . . . .278.3 7.4 395.0 263.5
Tesco . . . . . . . . . . . . .384.5 13.1 440.7 356.3
Associated Britis . . .1143.0 6.0 1182.0 940.0
Cranswick . . . . . . . . .629.0 14.0 896.0 588.5
Dairy Crest Group . . .338.7 6.7 424.9 325.0
Devro . . . . . . . . . . . . .246.7 3.7 296.9 218.0
Premier Foods . . . . . . .10.5 0.2 35.1 10.2
Tate & LyIe . . . . . . . . .611.0 18.5 656.0 466.8
UniIever . . . . . . . . . .2006.0 25.0 2081.0 1777.0
Mondi . . . . . . . . . . . . .498.0 15.3 664.0 468.8
Centrica . . . . . . . . . . .301.1 8.5 345.8 282.6
InternationaI Pow . . .318.6 3.0 448.6 279.4
NationaI Grid . . . . . . .629.0 5.5 647.0 530.0
Northumbrian Wate .463.2 -0.1 469.5 295.5
Pennon Group . . . . . .687.5 4.0 737.5 579.5
Severn Trent . . . . . .1526.0 32.0 1526.4 1306.0
United UtiIities . . . . .612.5 11.0 631.5 543.5
Cookson Group . . . . .441.0 30.5 724.5 410.5
DS Smith . . . . . . . . . .181.9 6.3 266.2 149.4
Rexam . . . . . . . . . . . .315.1 8.2 400.0 300.9
BAE Systems . . . . . .276.4 4.8 369.9 248.1
Chemring Group . . . .528.5 5.0 736.5 485.0
Cobham . . . . . . . . . . .184.7 3.7 245.6 173.4
Meggitt . . . . . . . . . . . .332.8 14.0 397.6 296.2
QinetiQ Group . . . . . .114.3 1.0 136.3 96.7
RoIIs-Royce Group . .621.0 21.5 665.0 557.5
Senior . . . . . . . . . . . . .145.0 8.1 190.6 128.7
UItra EIectronics . . .1556.0 51.0 1895.0 1305.0
Hansen Transmissi . . .65.3 0.3 66.0 32.5
GKN . . . . . . . . . . . . . .180.7 12.5 245.0 164.2
BarcIays . . . . . . . . . . .168.5 12.5 333.6 138.9
HSBC HoIdings . . . . .520.4 20.5 730.9 486.2
LIoyds Banking Gr . . .37.0 1.8 76.4 27.6
RoyaI Bank of Sco . . .25.0 1.4 49.5 19.7
Standard Chartere .1352.5 77.0 1950.0 1272.0
AG Barr . . . . . . . . . .1210.0 22.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .324.4 18.6 503.5 289.9
Diageo . . . . . . . . . . .1273.5 38.5 1307.0 1092.0
SABMiIIer . . . . . . . . .2176.0 84.0 2340.0 1979.0
AZ EIectronic Mat . . .245.0 1.0 338.1 210.0
Croda Internation . .1751.0 80.0 2081.0 1367.0
EIementis . . . . . . . . . .130.5 10.5 187.4 99.6
Johnson Matthey . .1650.0 119.0 2119.0 1531.0
Victrex . . . . . . . . . . .1196.0 63.0 1590.0 1133.0
Price Chg High Low
BerkeIey Group Ho .1220.0 20.0 1299.0 789.5
Bovis Homes Group .409.9 7.3 464.7 326.5
Persimmon . . . . . . . .460.3 4.1 502.5 336.5
Reckitt Benckiser . .3312.0 53.0 3648.0 3015.0
Redrow . . . . . . . . . . . .112.0 5.0 139.0 98.4
TayIor Wimpey . . . . . . .35.1 0.6 43.3 22.3
Bodycote . . . . . . . . . .262.9 9.1 397.7 247.9
Charter Internati . . . .868.0 14.0 876.0 538.5
Fenner . . . . . . . . . . . .324.8 16.0 422.5 232.2
IMI . . . . . . . . . . . . . . . .768.0 38.5 1119.0 725.5
MeIrose . . . . . . . . . . .290.0 16.9 365.4 260.4
Northgate . . . . . . . . . .254.4 7.9 346.7 202.0
Rotork . . . . . . . . . . .1618.0 48.0 1895.0 1501.0
Spirax-Sarco Engi . .1864.0 52.0 2063.0 1649.0
Weir Group . . . . . . .1693.0 92.0 2218.0 1403.0
Ferrexpo . . . . . . . . . . .307.2 23.9 499.0 283.3
TaIvivaara Mining . . .272.6 7.6 622.0 265.0
BBAAviation . . . . . . .164.9 3.1 240.8 156.0
Stobart Group Ltd . . .129.0 1.6 163.6 122.0
AdmiraI Group . . . . .1382.0 49.0 1754.0 1230.0
AmIin . . . . . . . . . . . . .298.2 10.7 427.0 278.7
Huntsworth . . . . . . . . .58.8 1.3 86.0 56.0
Informa . . . . . . . . . . . .345.8 19.9 461.1 324.0
ITE Group . . . . . . . . . .169.0 4.8 258.2 160.5
ITV . . . . . . . . . . . . . . . . .62.3 2.8 93.5 51.7
Johnston Press . . . . . . .4.9 0.0 15.0 4.4
MecomGroup . . . . . .145.0 4.3 310.0 135.3
Moneysupermarket. .108.7 -0.5 120.4 75.7
Pearson . . . . . . . . . .1161.0 24.0 1207.0 926.0
PerformGroup . . . . .210.0 8.0 234.5 150.0
Reed EIsevier . . . . . .505.0 7.7 590.5 461.3
Rightmove . . . . . . . .1284.0 56.0 1307.0 732.5
STV Group . . . . . . . . .106.0 0.8 168.0 89.8
Tarsus Group . . . . . .127.5 7.5 165.0 112.5
Trinity Mirror . . . . . . . .43.0 1.8 117.0 37.5
UBM . . . . . . . . . . . . . .467.5 23.3 725.0 416.0
UTV Media . . . . . . . . .125.0 1.5 151.0 101.0
WiImington Group . . .88.5 -1.0 183.0 82.5
WPP . . . . . . . . . . . . . .641.5 32.5 846.5 578.5
YeII Group . . . . . . . . . . .4.2 0.1 16.1 4.0
African Barrick G . . .516.0 16.0 638.0 393.5
AngIo American . . .2426.5 162.5 3437.0 2230.0
AngIo Pacific Gro . . .265.5 -3.6 369.3 257.1
Antofagasta . . . . . . .1052.0 102.0 1634.0 950.0
Aquarius PIatinum . .189.1 12.1 419.0 177.0
BHP BiIIiton . . . . . . .1875.5 128.5 2631.5 1731.5
BeazIey . . . . . . . . . . . .118.0 4.5 139.2 109.6
CatIin Group Ltd. . . .385.0 7.8 421.4 325.0
Hiscox Ltd. . . . . . . . . .373.2 6.6 424.7 340.5
Jardine LIoyd Tho . . .651.5 11.5 709.0 564.5
Lancashire HoIdin . . .729.0 5.5 741.5 529.0
RSA Insurance Gro . .114.4 4.5 143.5 107.0
Aviva . . . . . . . . . . . . . .308.2 13.2 477.9 276.1
LegaI & GeneraI G . . .101.4 4.0 123.8 90.9
OId MutuaI . . . . . . . . .112.0 5.4 145.2 103.2
Phoenix Group HoI . .492.0 -0.3 699.5 458.0
PrudentiaI . . . . . . . . .588.5 27.5 777.0 546.5
ResoIution Ltd. . . . . .253.0 3.8 316.1 211.3
St James's PIace . . . .312.5 8.2 376.0 236.2
Standard Life . . . . . . .207.4 7.5 244.7 172.0
4Imprint Group . . . . .217.5 4.5 295.0 200.0
Aegis Group . . . . . . .129.1 3.4 163.5 121.3
BIoomsbury PubIis . . .98.8 2.3 138.0 96.0
British Sky Broad . . .699.0 15.5 850.0 618.5
Centaur Media . . . . . . .38.0 1.5 73.0 36.0
Chime Communicati .187.3 3.0 298.5 173.0
Creston . . . . . . . . . . . .76.3 -1.3 121.0 74.5
DaiIy MaiI and Ge . . .368.0 21.0 594.5 343.4
Euromoney Institu . .615.0 5.0 736.0 522.5
Future . . . . . . . . . . . . . .12.1 0.4 30.0 10.8
Haynes PubIishing . .233.0 1.0 260.0 202.5
Centamin Egypt Lt . .100.8 3.0 197.1 89.7
Eurasian NaturaI . . .599.0 49.0 1125.0 550.0
FresniIIo . . . . . . . . . .1681.0 157.0 2150.0 1223.0
GemDiamonds Ltd. .220.0 5.7 306.0 179.8
GIencore Internat . . .444.8 30.2 531.1 348.0
HochschiId Mining . .461.0 11.0 680.0 423.9
Kazakhmys . . . . . . . .857.0 75.0 1671.0 782.0
Kenmare Resources . .39.4 1.9 59.9 17.2
Lonmin . . . . . . . . . . .1135.0 68.0 1983.0 1067.0
New WorId Resourc .490.0 17.5 1060.0 472.5
PetropavIovsk . . . . . .691.0 31.0 1226.0 660.0
RandgoId Resource 6485.0 315.0 7215.0 4425.0
Rio Tinto . . . . . . . . .3196.5 232.0 4712.0 2964.5
Vedanta Resources .1196.0 126.0 2559.0 1070.0
Xstrata . . . . . . . . . . . .902.1 82.1 1550.0 820.0
Inmarsat . . . . . . . . . . .508.0 20.1 719.5 389.7
Vodafone Group . . . .166.2 3.7 182.8 155.1
Genesis Emerging . .448.4 10.4 568.0 438.0
Afren . . . . . . . . . . . . . . .86.4 1.7 171.2 84.7
BG Group . . . . . . . . .1221.0 77.0 1564.5 1118.5
BP . . . . . . . . . . . . . . . .404.8 20.1 509.0 363.2
Cairn Energy . . . . . . .295.6 14.5 469.7 275.1
EnQuest . . . . . . . . . . . .93.9 3.6 158.5 90.4
Essar Energy . . . . . .269.9 24.9 589.5 235.1
ExiIIon Energy . . . . . .209.5 9.6 469.7 195.0
Heritage OiI . . . . . . . .247.0 9.8 486.0 190.0
Ophir Energy . . . . . . .274.0 1.5 299.0 184.5
Premier OiI . . . . . . . . .350.3 31.9 535.0 310.0
RoyaI Dutch SheII . .2036.0 76.5 2326.5 1883.5
RoyaI Dutch SheII . .2069.0 69.5 2336.0 1846.5
SaIamander Energy .196.6 7.4 317.6 182.3
Soco Internationa . . .345.8 11.7 454.7 279.8
TuIIow OiI . . . . . . . . .1324.0 34.0 1493.0 945.5
Amec . . . . . . . . . . . . .885.0 47.0 1251.0 834.0
Hunting . . . . . . . . . . .603.0 23.5 817.0 562.5
Kentz Corporation . .469.5 10.5 494.5 275.5
LampreII . . . . . . . . . . .260.8 13.2 395.2 245.0
Petrofac Ltd. . . . . . .1308.0 79.0 1685.0 1110.0
Wood Group (John) .539.5 20.5 715.8 430.5
Burberry Group . . . .1364.0 55.0 1600.0 959.5
PZ Cussons . . . . . . . .333.4 -5.8 409.0 320.5
Supergroup . . . . . . .1055.0 30.0 1820.0 818.5
AstraZeneca . . . . . .2879.5 96.0 3359.0 2543.5
BTG . . . . . . . . . . . . . .260.7 2.8 309.7 210.1
Genus . . . . . . . . . . . .1080.0 54.0 1083.0 772.0
GIaxoSmithKIine . . .1349.0 19.5 1385.0 1127.5
Hikma Pharmaceuti .588.5 22.0 900.0 555.5
Shire PIc . . . . . . . . . .2023.0 58.0 2136.0 1405.0
CapitaI & Countie . . .172.1 2.1 203.7 131.2
Daejan HoIdings . . .2398.0 -51.0 2954.0 2282.0
F&C CommerciaI Pr . .95.6 -1.2 108.0 88.0
Grainger . . . . . . . . . . . .89.7 3.7 133.2 86.0
London & Stamford .115.7 1.8 140.0 112.9
SaviIIs . . . . . . . . . . . . .288.6 -4.9 427.1 286.5
UK CommerciaI Pro . .73.9 -1.3 85.5 70.4
Unite Group . . . . . . . .167.7 2.3 229.8 152.9
Big YeIIow Group . . .248.5 -1.5 353.3 234.2
British Land Co . . . . .500.5 23.5 629.5 465.0
CapitaI Shopping . . .322.0 17.7 424.8 296.4
Derwent London . . .1538.0 27.0 1880.0 1411.0
Great PortIand Es . . .356.9 9.9 445.0 329.0
Hammerson . . . . . . . .387.6 20.6 490.9 366.5
Hansteen HoIdings . . .75.5 1.5 89.5 69.8
Land Securities G . . .658.5 25.0 885.0 629.0
SEGRO . . . . . . . . . . . .221.2 4.2 331.3 216.5
Shaftesbury . . . . . . . .480.8 16.5 539.0 431.7
Autonomy Corporat 2540.0 6.0 2540.0 1271.0
Aveva Group . . . . . .1550.0 36.0 1799.0 1391.0
Computacenter . . . . .376.0 8.9 490.0 286.4
Fidessa Group . . . . .1595.0 43.0 2109.0 1409.0
Invensys . . . . . . . . . . .238.7 15.4 364.3 221.1
Logica . . . . . . . . . . . . .80.3 6.2 147.2 73.9
Micro Focus Inter . . .348.8 23.5 426.2 239.4
Misys . . . . . . . . . . . . .232.2 17.3 420.2 214.9
Sage Group . . . . . . . .264.8 6.9 302.0 231.7
SDL . . . . . . . . . . . . . . .650.0 21.0 711.5 555.0
TeIecity Group . . . . . .564.0 -4.5 583.5 430.0
Aggreko . . . . . . . . . .1759.0 60.0 2034.0 1394.5
Ashtead Group . . . . .140.0 5.9 207.9 99.4
Atkins (WS) . . . . . . . .544.5 47.3 820.0 490.2
Babcock Internati . . .661.0 7.0 733.0 513.5
Berendsen . . . . . . . . .433.6 6.2 568.0 391.3
BunzI . . . . . . . . . . . . .795.0 25.0 812.5 676.5
Cape . . . . . . . . . . . . . .483.8 11.9 591.5 337.5
Capita Group . . . . . . .712.5 10.5 794.5 635.5
CariIIion . . . . . . . . . . .342.3 16.6 403.2 298.8
De La Rue . . . . . . . . .799.0 6.0 853.5 549.5
EIectrocomponents .196.7 5.4 294.9 190.0
Experian . . . . . . . . . . .735.0 30.5 833.5 665.0
FiItrona PLC . . . . . . . .365.0 8.1 385.5 227.5
G4S . . . . . . . . . . . . . . .267.6 7.4 291.0 237.7
Hays . . . . . . . . . . . . . . .75.1 2.7 133.6 69.4
Homeserve . . . . . . . .482.6 10.7 532.0 408.0
Howden Joinery Gr . .106.5 2.2 127.5 75.4
Interserve . . . . . . . . . .302.1 2.1 341.3 183.5
Intertek Group . . . . .2068.0 65.0 2148.0 1715.0
MichaeI Page Inte . . .377.9 16.4 567.0 338.7
Mitie Group . . . . . . . .238.7 6.8 242.5 191.2
Premier FarneII . . . . .158.1 9.5 308.8 148.1
Regus . . . . . . . . . . . . . .76.1 1.7 119.0 64.0
RentokiI InitiaI . . . . . . .75.0 2.1 104.9 72.9
RPS Group . . . . . . . . .169.5 8.1 253.0 161.4
Serco Group . . . . . . .516.0 16.2 633.0 490.9
Shanks Group . . . . . .108.9 2.4 130.9 103.0
SIG . . . . . . . . . . . . . . . .95.7 3.3 153.5 91.0
SThree . . . . . . . . . . . .224.0 10.8 447.6 213.2
Travis Perkins . . . . . .753.0 37.5 1127.0 715.0
WoIseIey . . . . . . . . .1536.0 99.0 2261.0 1404.0
ARM HoIdings . . . . . .593.0 29.0 651.0 338.9
CSR . . . . . . . . . . . . . .229.2 7.9 447.0 208.0
Imagination Techn . .450.0 27.0 502.0 296.9
Pace . . . . . . . . . . . . . .101.8 2.3 231.8 91.0
Spirent Communica .124.7 4.6 160.3 116.0
British American . .2796.5 87.5 2871.0 2282.5
ImperiaI Tobacco . .2156.0 28.0 2231.0 1784.0
Avis Europe . . . . . . . .315.0 0.2 315.0 184.0
Betfair Group . . . . . . .750.5 -2.5 1550.0 567.0
Bwin.party Digita . . .127.8 5.6 289.1 100.6
CarnivaI . . . . . . . . . .2102.0 46.0 3153.0 1742.0
Compass Group . . . .542.5 16.0 612.0 511.5
Domino's Pizza UK . .508.5 -3.5 586.0 377.0
easyJet . . . . . . . . . . . .357.0 4.0 479.0 301.0
FirstGroup . . . . . . . . .336.5 16.2 412.6 311.3
Go-Ahead Group . . .1404.0 48.0 1598.0 1085.0
Greene King . . . . . . .445.0 3.2 518.0 410.0
InterContinentaI . . .1095.0 40.0 1435.0 955.0
InternationaI Con . . .156.1 9.0 305.0 141.6
JD Wetherspoon . . . .390.0 3.7 468.3 386.3
Ladbrokes . . . . . . . . .124.0 2.5 155.3 120.0
Marston's . . . . . . . . . . .93.4 -1.2 117.1 87.1
MiIIennium& Copt . .420.2 19.2 600.5 395.5
MitcheIIs & ButIe . . . .246.5 -6.0 361.0 216.4
NationaI Express . . .236.1 4.0 270.2 220.7
Rank Group . . . . . . . .118.8 -3.5 153.7 109.5
Restaurant Group . . .282.0 9.0 335.0 254.9
Stagecoach Group . .247.0 5.5 268.5 180.4
Thomas Cook Group .37.2 1.7 204.8 33.7
TUI TraveI . . . . . . . . . .158.7 7.4 271.9 137.2
Whitbread . . . . . . . .1634.0 34.0 1887.0 1409.0
WiIIiamHiII . . . . . . . . .228.2 2.6 237.3 155.5
Abcam . . . . . . . . . . . .364.0 16.8 460.0 307.0
AIbemarIe & Bond . .340.0 4.5 400.1 267.5
Amerisur Resource . .13.3 -1.0 29.0 11.5
Andor TechnoIogy . .575.5 15.5 685.0 340.0
ArchipeIago Resou . . .69.0 0.0 79.0 32.3
ASOS . . . . . . . . . . . .1646.0 94.0 2468.0 1089.0
AureIian OiI & Ga . . . .19.0 0.8 92.0 16.0
Avanti Communicat .260.8 5.0 735.0 255.0
Avocet Mining . . . . . .239.0 16.5 286.8 160.0
BIinkx . . . . . . . . . . . . .158.0 14.0 158.6 70.5
Borders & Souther . . .45.0 0.0 85.5 43.5
BowLeven . . . . . . . . .101.0 11.3 398.0 89.8
Brooks MacdonaId 1230.0 10.0 1372.5 907.5
Cove Energy . . . . . . . .75.0 3.5 112.8 61.0
Daisy Group . . . . . . . .110.5 -0.3 127.0 88.0
EMIS Group . . . . . . . .529.0 -3.0 580.0 367.5
Encore OiI . . . . . . . . . .50.0 1.5 151.5 40.8
Faroe PetroIeum . . . .145.0 5.3 218.3 133.0
GuIfsands PetroIe . . .185.5 4.8 401.5 142.5
GWPharmaceuticaI .100.0 2.5 130.0 83.0
H&T Group . . . . . . . . .330.0 -6.0 395.0 277.0
Hamworthy . . . . . . . .529.5 27.5 705.0 360.0
Hargreaves Servic .1039.0 9.0 1078.0 675.0
HeaIthcare Locums . . . .5.4 -0.4 5.8 5.3
Immunodiagnostic .1033.0 48.0 1218.0 768.5
ImpeIIamGroup . . . .330.0 10.0 387.5 134.0
James HaIstead . . . . .428.6 -3.9 495.0 323.8
KaIahari MineraIs . . .227.8 3.3 301.0 142.0
London Mining . . . . .330.5 5.0 436.5 283.0
Lupus CapitaI . . . . . .100.0 1.5 150.0 86.0
M. P. Evans Group . .432.5 12.5 500.5 371.0
Majestic Wine . . . . . .422.0 2.8 510.0 330.0
May Gurney Integr . .271.0 2.0 295.0 181.0
Monitise . . . . . . . . . . . .35.3 1.8 39.0 18.5
MuIberry Group . . . .1563.0 48.0 1920.0 383.5
Nanoco Group . . . . . . .50.0 -0.5 115.8 48.8
NauticaI PetroIeu . . .300.0 10.5 547.0 223.5
NichoIs . . . . . . . . . . . .533.0 -0.5 579.0 410.0
Numis Corporation . . .92.5 1.0 137.8 89.0
Pan African Resou . . .12.3 0.8 14.5 8.2
Patagonia GoId . . . . . .52.5 0.5 70.0 20.3
Prezzo . . . . . . . . . . . . .56.4 0.1 71.5 53.3
Pursuit Dynamics . . .187.5 5.5 700.0 160.5
Rockhopper ExpIor .200.8 6.3 489.0 141.0
RWS HoIdings . . . . . .460.0 5.0 479.8 258.5
Songbird Estates . . .122.3 6.5 160.3 110.3
VaIiant PetroIeum . . .440.5 0.5 761.5 435.0
Young & Co's Brew . .622.5 1.0 712.0 530.0
InternationaI Pers . . .225.3 14.7
Vedanta Resources .1196.0 11.8
Antofagasta . . . . . . .1052.0 10.7
FresniIIo . . . . . . . . . .1681.0 10.3
Essar Energy . . . . . .269.9 10.2
Premier OiI . . . . . . . . .350.3 10.0
Xstrata . . . . . . . . . . . .902.1 10.0
Morgan CrucibIe Co .252.1 9.6
Kazakhmys . . . . . . . .857.0 9.6
Atkins (WS) . . . . . . . .544.5 9.5
Rank Group . . . . . . . .118.8 -2.9
MitcheIIs & ButIer . . .246.5 -2.4
Daejan HoIdings . . .2398.0 -2.1
Synergy HeaIth . . . . .873.0 -2.0
PZ Cussons . . . . . . . .333.4 -1.7
SaviIIs . . . . . . . . . . . .288.6 -1.7
UK CommerciaI Prop .73.9 -1.7
KCOM Group . . . . . . . .69.6 -1.6
CabIe & WireIess C . . .38.1 -1.4
AngIo Pacific Grou . .265.5 -1.3
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
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 . . . . .100.39 0.00 103.2 100.4
Tsy 5.250 12 . . . .103.25 -0.01 107.7 103.2
Tsy 9.000 12 . . . .106.48 0.00 115.0 106.5
Tsy 5.000 12 . . . .101.96 -0.01 106.3 101.9
Tsy 4.500 13 . . . .105.64 -0.02 108.8 105.6
Tsy 2.500 13 . . . .283.37 0.01 287.7 277.6
Tsy 8.000 13 . . . . .114.64 -0.04 120.7 114.6
Tsy 5.000 14 . . . . .111.98 -0.11 114.1 109.2
Tsy 7.750 15 . . . .102.00 0.00 109.1 101.7
Tsy 4.750 15 . . . . .113.92 -0.22 114.8 108.6
Tsy 8.000 15 . . . .127.88 -0.22 131.3 123.7
Tsy 2.500 16 . . . .337.06 -0.15 341.0 310.2
Tsy 4.000 16 . . . . .112.18 -0.27 113.4 104.9
Tsy 1.250 17 . . . . .113.60 -0.40 115.0 106.7
Tsy 8.750 17 . . . .139.27 -0.48 142.1 132.9
Tsy 12.000 17 . . .123.86 0.00 134.2 123.9
Tsy 5.000 18 . . . . .119.52 -0.56 121.0 109.7
Tsy 4.500 19 . . . . .116.76 -0.70 118.5 105.4
Tsy 3.750 19 . . . . .111.42 -0.74 113.0 99.4
Tsy 2.500 20 . . . .349.40 -0.58 355.6 312.4
Tsy 4.750 20 . . . . .119.07 -0.78 120.8 106.6
Tsy 8.000 21 . . . .149.30 -0.87 151.8 133.8
Tsy 1.875 22 . . . .122.00 -0.57 123.8 111.3
Tsy 4.000 22 . . . . .112.86 -0.91 114.7 99.0
Tsy 2.500 24 . . . . .311.88 -0.69 316.9 273.5
Tsy 5.000 25 . . . .123.24 -1.02 125.4 107.4
Tsy 1.250 27 . . . . .116.40 -0.80 118.9 104.6
Tsy 4.250 27 . . . . .113.50 -1.17 115.8 97.9
Tsy 6.000 28 . . . .137.57 -1.15 140.3 119.5
Tsy 4.125 30 . . . .294.67 -0.90 301.4 261.2
Tsy 4.750 30 . . . . .119.79 -1.29 122.3 103.0
Tsy 4.250 32 . . . . .112.11 -1.39 114.6 96.0
Tsy 4.250 36 . . . . .111.14 -1.48 113.8 95.0
Tsy 4.750 38 . . . . .119.97 -1.53 123.0 102.8
Tsy 4.500 42 . . . . .115.64 -1.64 118.3 98.9
% %
CITYA.M. 28 SEPTEMBER 2011 37
Wealth Management | Markets
T
HOUGH yesterday saw a broad mar-
ket rally, it was a tiny chink of light in
an otherwise dark tunnel for the
economy. The ongoing Eurozone
debt crisis and the seeming inability of any-
body involved to take hold of the situation
with a credible plan for managing the fall-
out of an inevitable Greek default has driv-
en flight into the dollar. These capital flows
have also been driven by a slew of sickly
world macro data and slashed forecasts.
Typically viewed as a safe haven cur-
rency, dollar strength is more often than
not a sign of increasing risk aversion, says
Jana Pristovsek, market analyst at IG Index.
With Greece hovering on the brink of a
default and the Chinese economy seeming-
ly about to stall, investors will be looking to
protect their wealth ahead of a potential
storm.
The dollar has risen, commodities have
fallen further than can be attributable to
dollar firmness. Risk assets have fallen into
ever closer correlation. All of which should
have those with positions in the highly
volatile forex markets sitting down and
concocting plans for a possible collapse.
COMMODITY CURRENCIES HIT
Dollar strength has triggered a shift away
from a world economic crisis consisting
The rally in the greenback driven by haven
flows ought to be viewed as the canary in the
proverbial mine shaft, writes Craig Drake
Wealth Management| Foreign Exchange
Strong dollar
should be seen
as a warning
R
ECENTLY the focus in the FX market has been
squarely upon the euro, while trading in cable
has been uncharacteristically quiet. While the
euro has tumbled as European officials desper-
ately try to contain the growing credit crisis in the
region, sterling has remained relatively steady.
Amazingly enough the pound has become a safe
haven play, although the UK balance sheet is hardly a
bastion of financial strength.
To understand just how skewed sentiment has
become we only need to look at the latest CDS rates.
In Italy the cost of insuring sovereign bonds for the
next five years is now over 500 basis points, while
the UK sports a much more modest rate of just 86
basis points. Italian sovereign debt is a larger portion
of the countrys GDP, but the overall debt in UK is
estimated to be more than 450 per cent of GDP,
while in Italy it is only 315 per cent. The fact the UK
enjoys such favourable CDS rates is testament to the
complacency of the market and the false belief that
the austerity measures have actually improved the
UKs finances.
Last weeks UK monthly Public Sector Net
Borrowing report revealed that the government had
to finance a record amount of debt in August as rev-
enue waned and spending increased. Ironically
enough, it was the very austerity measures imple-
mented by Cameron that caused the slowdown in UK
economic growth and resulted in a larger than
expected gap in the budget deficit. All of this bodes
very badly for the UK economy going forward and
could force the Bank of England to resort to more
quantitative easing by the end of the year.
However, the real threat to cables stability is the
prospect of an adverse event in European credit mar-
kets. The currency market may be underestimating
the exposure of the UK financial sector to the possi-
ble default of Greece. The final decision on the bailout
funds is expected after the EcoFin meeting on 3 and
4 October. If the troika balks at releasing the money,
euro-dollar will likely take another nasty plunge, but
dont be surprised if this time the pound follows suit.
POUND COULD
SUFFER FROM
EU FALLOUT
BORIS SCHLOSSBERG
DIRECTOR OF CURRENCY RESEARCH, GFT
YOUR ONE STOP FOR
MARKET COMMENTARY.
FX360 is free to everyone. Visit fx360.com
GFT Global Research Team
Kathy Lien, Boris Schlossberg, Matthew Weller, Bradley Gareiss, and David Morrison
What you get with FX360:
0a||yMarketCorrentary
0eta||edJechn|ca|Ana|ys|s
Corprehens|ve|conor|cCa|endar
Shortand|ongJerrJradeRecorrendat|ons
When trading CFDs, Forex and Spread Bets, it is possible to lose more than your
initial deposit. FX360.com is a service of Global Futures & Forex, Ltd.
2011 GFT Global Markets UK Ltd. All rights reserved. GFT Global Markets UK Ltd., a subsidiary of Global Futures & Forex, Ltd.
is authorised and regulated by the Financial Services Authority. CD03UK.165.091411
of the Eurozone, the UK and the US and
instead threatens a genuine world econom-
ic crisis. In recent months, the to and fro
between Eurozone arguments and US debt
ceiling bickering has dominated the forex
markets. But as the dollar continues to rise,
it is dragging more and more economies
into the turmoil. Investors have been driv-
en by risk aversion into the greenback
perceived by many as the only safe fiat cur-
rency. These inflows have seen the dollar
strengthen against its major pairs and also
affected dollar-denominated commodity
prices (see commodity ETF chart, below
right)
A strong dollar, coupled with a slew of
cuts in global growth forecasts, has hit the
exporting economies of resource-rich
countries hard, with their currencies tak-
ing a hit as a consequence. The Aussie, Kiwi
and Canadian dollars have all tumbled this
month the Australian dollar being partic-
ularly hard hit. These commodity curren-
cies those of countries which depend
heavily on commodity exports had been
holding up well for the last quarter, seem-
ingly disconnected from the turmoil in the
Eurozone. But dollar strength has put a
stop to this run.
But why have investors been driven into
the dollar? Dollar is the most liquid cur-
rency on the one hand being exchangeable
at any time, and on the other hand, the US
has a monopoly on printing the dollar,
says Yoni Assia, chief executive of eToro.
The combination of the two makes the US
debt, especially in the short term, the safest
deposit.
REAL MONEY
Following the Swiss National Bank inter-
vention at the start of the month to put a
1.20 floor under the euro-Swiss franc
price, one might have expected risk-averse
investors to flood into gold, as had been the
Jul Sep Aug
78
76
74
ANALYSIS l Dollar index spot price
$
77.532
27 Sept
Jul Sep Aug
29
27
25
ANALYSIS l WisdomTree Dreyfus Commodity ETF
$
25.562
27 Sept
Risk-wary investors are piling into dollars
Picture: REX
trend for the last 18 months. But the fall in
gold at the tail end of last week was the
biggest decline seen since Jimmy Carter
was in the White House.
This is not entirely attributable to a
strong dollar. Last week, the dollar index
was up 2.5 per cent, although we only have
to go back to two weeks ago to see a greater
increase of 3.3 per cent, during which gold
only fell 1.4 per cent, says Simon Smith,
chief economist at FXPro. Smith also
observes that while the gold price has
declined, there has been a lack of reaction
in the gold holdings of gold ETF funds,
which suggests that retail investors are
sticking with gold, or at least arent liqui-
dating it in large volumes the decline has
more to do with institutional investors
pulling out of long positions elsewhere.
Fundamentally, the fact that gold is hav-
ing such a torrid time when global real
interest rates are near zero is indicative of
the extreme risk aversion that is currently
being seen.
HISTORY REPEATING ITSELF
As economic crises of one form or another
surround all of the worlds largest
economies, many will be drawing the
inevitable comparisons with market move-
ments in the run up to the 2008 market
implosion.
In August 2008, the dollar rallied strong-
ly, as it has done shortly before the majority
of serious market crashes. Shortly after the
dollar rally, the equity markets caved in.
With this in mind investors should be ask-
ing themselves right now if the strong dol-
lar is really the canary in the mine shaft
and if they should be positioning them-
selves accordingly.
Wealth Management
FOREX ANALYST PICKS
FOREX STRATEGIST
JOEL KRUGER
My pick: Short Australian dollar-dollar at $1.0000
Expertise: Technical analysis
Average time frame of trades: 1 day to 1 week
FOREX STRATEGIST
ILYA SPIVAK
My pick: Stay short euro-dollar (stop-loss at the breakeven level)
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
I sold euro-dollar at $1.4328 on 29 July expecting the deepening
debt crisis to weigh on the euro, while anaemic global recovery
boosts safe-haven demand for the dollar. The pair dropped to a 7-
month low last week, but technical positioning now suggests a cor-
rective bounce is ahead as relative strength studies show signs of
positive divergence with price action. I will remain short and look for
the forthcoming upswing as an opportunity to add to my position.
The latest sharp pullback below $0.9925 opens a fresh downside extension
exposing $0.9000. It officially confirms a major lower top by $1.0765.
However, with short-term technical studies looking stretched, I wouldnt
rule out the possibility for some form of corrective relief back above parity,
before the market once again resumes its downward trajectory.
Nevertheless, inter-day rallies should be well capped below parity on a daily
close. Sell at $1.0000 for a $0.91000 objective, with a stop at $1.0450.
FOREX STRATEGIST
JOHN KICKLIGHTER
My pick: Short euro-dollar $1.3400 and sterling-dollar below $1.5300
Expertise: Fundamental analysis with risk management
Average time frame of trades: 1 day to 1 week
This past week the markets delivered a major shock to risk trends. The
opportunities this development produced were substantial. In this move,
my Aussie-yen and Loonie-yen setups short below 77.50 and 76.50
respectively played out quickly. Going forward, the larger bear trend is
still in place, but we are currently taking a breather. Ill wait until risk
aversion reengages with a euro-dollar drop below $1.3400 and sterling-
dollar below $1.53 (with 200 point stops and initial targets for both).
O
NE of the FX pairs hit
the hardest from dollar
strength and the com-
modities sell-off over
the past week has been the
Australian dollar-dollar pair.
The Aussie tumbled over 6.5
per cent to lows of $0.9623
last week, but since then has
recovered steadily as the US
dollar rally takes a breather. It
may struggle to retake parity
though, especially if the US
dollar starts rallying again.
Look to sell Australian dollar-
dollar as it approaches $1.000.
Spread Co quotes $0.99620-
$0.99640.
Sterling has had the upper
hand against the euro in
recent days taking sterling-
euro back above the 1.1500
level. However, if history is
anything to go by, the pair
may not last long there as it
has often fallen back. Capital
Spreads quotes 1.1500-
1.1503 on sterling-euro.
With the yens ongoing sta-
tus as a safe haven currency,
its perhaps no surprise that
the euro remains under pres-
sure even if the sun has start-
ed to rise from the darkest
days at the start of the week.
We have this seam of confi-
dence edging into the market
suggesting that Europe can
avert a credit crisis and the
pair has found support around
the 102 level, but risks
remain. Off message com-
ments from a central banker
are more evidence that its all
words and no actions, which
is going to have the potential
to open up an attack on the
big 100 level. IG Index
quotes euro-yen at 103.25-
103.27.
Spread betters were selling
the euro again yesterday amid
fresh concerns that policy
makers were dawdling in their
attempts to react to the debt
crisis. Euro-dollar has been
trading largely in a range
between $1.340 and $1.355 in
the past week and traders
were anticipating another fall
to the $1.34 level and possibly
beyond. Spreadex quotes
$1.3514-$1.3516.
Philip Salter
THE TIPSTER
AFTER PARITY THE AUSSIE
SHOULD GO BACK UNDER
I
F youre not a Mini fan look away
now. The relentless march of the
Mini brand has taken a further step
towards automotive world domina-
tion with the introduction of its fifth
model in the mini lineup, the Mini
Coup.
According to the marketing guys at
Mini, a two-seater Mini is just what the
world needs. And they should know
because theyve built two million Minis
since they introduced the new Mini
back in 2001. Thats a lot of Minis. BMW
made a great drivers car in the Mini
Hatchback with its famed go-kart-like
feel and now its introducing a two-
seater with even go-kartier like perform-
ance. The company aims to entice the
kind of buyers that would otherwise go
for an Audi TT, Peugeot RCZ or VW
Scirocco. Already the exercise feels a little
silly. Because the roof that sits atop the
Mini Coup like a coin pressed into a
blancmange affects the driving experi-
ence, and the spoiler which deploys at
50mph to increase grip seems unneces-
sary. And even now I am unable to decide
whether the car is attractive or not.
Im certainly having a Mini adventure
in the Mini Coup John Cooper Works Im
driving. In and around the mountains of
Innsbruck its snowing surprisingly early
in the year, even for the Austrian Alps. Its
disappointing to say the least. Im driving
the new Coup like a nun.
And my view is limited and not just
because of the sleet and snow. That opin-
ion-dividing roof has led to some compro-
mises in terms of visibility. The design of
the C-pillars obstruct the view out of the
The latest Coup delivers a lot
of fun but at the expense of
some visibility and function
rear side windows as does the headrest of
the passenger seat. It means when I look
over my shoulder I cant see the road at
some junctions. I find Im dependent on
my co-driver letting me know when its
safe to pull out. It feels a bit like Im driv-
ing an over-designed van. Albeit a fast and
fun one. Except Im not having so much
fun. And in this weather Im certainly not
going fast. I cant even tell you where I
am. Somewhere in Austria, Italy or
Germany. Im feeling a little grumpy.
Though later on some drier roads I find
the Mini Coup John Cooper Works is
really very good. Mini claims better han-
dling than the regular Hatchback thanks
to a good deal of work on the suspension
and damping much of it at the
Nrburgring plus a 10mm drop in ride
height. With a 0-62mph acceleration time
of 6.4 seconds and a top speed of 149mph,
this car is now the fastest Mini in produc-
tion. It certainly feels like it. Its 211bhp
1.6-litre engine makes a quite lovely noise
in Sport mode and the car can be thrown
around enthusiastically.
The car drives very, very well but is it
sufficiently better than the hatchback to
justify abandoning the rear seats?
Possibly not. But then if youre the kind of
person that doesnt require a car to be too
sensible at all, then this car could offer a
lot of fun for the money.
CAR TALK BY RYAN BORROFF
Get ready for a fun
ride with this sporty
number
The latest
in Minis
adventure
TOYOTAS PRIUS PLUG-IN HYBRID
Toyotas new Prius Plug-in Hybrid
will cost less than 31k when it
goes on sale next year. The car has
an electric (EV) driving range of
more than 14 miles, CO2 emissions
of 49g/km (combined) and a
claimed potential fuel economy of
134.5mpg. The Ultra-Low Carbon
Vehicle grant scheme could possi-
bly reduce the price by a further
5k.
HYDROGEN REFUELLING STATION
Honda is hoping to encourage the
uptake of hydrogen-powered vehi-
cles by opening the first hydrogen
refuelling station available to the
public in the UK. Located at its
manufacturing facility in Swindon,
the facility looks like a conventional
fuelling station and should take only
five minutes or so to fuel a car like
Hondas FCX Clarity fuel cell car. If
you can find one.
POTHOLE DAMAGE TO YOUR CAR
According to research from online
mail order parts supplier Carparts-
Direct.co.uk, the average compensa-
tion for vehicles damaged by
potholes is 200. Last year there
were 22,000 successful claims
against local councils, and numbers
are set to increase after the
Government decided not to patch
motorway potholes smaller than
the size of a soup bowl after 2015.
Lifestyle| Motoring
WORDS BY
RYAN BORROFF
We Want to
Buy Your Car
At Dick Lovett Specialist Cars, we are always buying.
We are looking for quality, low-mileage models of the
following brands: Ferrari, Maserati, Audi R8, Nissan GT-R,
Bentley, Lamborghini, Aston Martin, M Power BMW models,
Ferrari Classics and anything a bit different.
If you are thinking of selling your car and would like to take
advantage of our open cheque book, please call Matthew
Beard on 01793 615000 or 07860 911959. Alternatively,
please e-mail matthew.beard@dicklovett.co.uk
Dick Lovett Specialist Cars
Ashworth Road, Bridgemead, Swindon, Wiltshire, SN5 7XR
www.dicklovett.co.uk
THE VERDICT:
DESIGN hhhii
PERFORMANCE hhhhi
PRACTICALITY hhhii
VALUE FOR MONEY hhhii
THE FACTS:
MINI COUP
JOHN COOPER
WORKS
PRICE: 23,795
0-62MPH: 6.4 secs
TOP SPEED: 149mph
CO2 G/KM: 165g/km
MPG Combined: 39.8
T
E
R
R
E
S
T
R
I
A
L
WATERLOO ROAD
BBC1, 7.30PM
Michael continues his mission to shake
up the school by appointing an
outspoken old student friend as Head
of English.
LIVE UEFA CHAMPIONS LEAGUE
ITV1, 7.30PM
Valencia v Chelsea (Kick-off 7.45pm).
All the action from this evenings
Group E encounter at the Mestalla.
With commentary by Clive Tyldesley.
LOCATION, LOCATION, LOCATION
CHANNEL4, 8PM
Kirstie Allsopp and Phil Spencer help
new parents Lucy and David search
for a home in Surrey where they can
raise baby Evie.
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmSoccer Special 10.30pm
Youre on Sky Sports! 11.30pm
Footballs Greatest 12amFIFA
Futbol Mundial 12.30amUEFA
Champions League Goals 1.30am
Youre on Sky Sports! 2.30am
Futbol Mundial 3.30amUEFA
Champions League Goals 4.30am
Futbol Mundial 5.30am-6amTotal
Rugby
SKY SPORTS 2
7pmLive UEFA Champions League
10pmUEFA Champions League
Goals 11pmBoots n All 12am
NFL: Total Access 1amTrans
World Sport 2amBoots n All
3amTotal Rugby 3.30am-4.30am
NFL: Total Access
SKY SPORTS 3
7pmDTM Motor Racing 8pm
Boots n All 9pmPGA EuroPro
Tour Golf 11pmInternational Judo
World Circuit 11.30pmCage
Fighter 12amInside the PGA Tour
12.30amEuropean Tour Weekly
1amPGA EuroPro Tour Golf 3am
Trans World Sport 4am-4.30am
International Judo World Circuit
BRITISH EUROSPORT
6pmLive UEFA Womens
Champions League 8pm
Wednesday Selection 8.10pm
Riders Club 8.15pmPGA Tour Golf
9.15pmEuropean Tour Golf
9.45pmGolf Club 9.50pmSailing
10.50pmYacht Club 10.55pm
Wednesday Selection
11pm-12.30amWorld Superbikes
ESPN
7pmESPN Kicks: Extra 7.15pm
World Series by Renault 9.45pm
ESPN Kicks: Extra 10pmPremier
League World 10.30pmSerie A
Rivals 11pmESPN Game of the
Week 11.30pmESPN Press Pass
12amESPN Kicks: Extra
12.15amPremier League Review
1.15amSerie A Rivals 1.45am
Live International Football 3.45am
Goal Show4.15amRussian
Premier League Review
4.45am-6amBundesliga Review
Show
SKY LIVING
7pmCriminal Minds: A girl is
abducted from a playground. 8pm
The Secret Circle 9pmSteps
Reunion 10pmSupernatural 11pm
Bones 12amCriminal Minds 1am
CSI: Crime Scene Investigation
2.40amMaury 3.30amBones
4.20amNothing to Declare
5.10am-6amJerry Springer
BBC THREE
7pmThe Worlds Strictest Parents
8pmJunior Doctors: Your Life in
Their Hands 9pmThe Fades 10pm
FILMCon Air 1997. 11.45pm
Family Guy 12.30amAmerican
Dad! 1.15amThe Fades 2.15am
Young Soldiers 3.15amBizarre ER
4.15am-5.10amThe Worlds
Strictest Parents
E4
7pmHollyoaks 7.35pmHow I Met
Your Mother 8pmFILMJumper
2008. 9.45pmRude Tube 2011
11.50pmThe Big Bang Theory
12.50amScrubs 1.45amHow I
Met Your Mother 2.10amRules of
Engagement 2.35amReaper
3.20amGlee 4.05am-6am
Switched
HISTORY
7pmTreasure Houses of Britain
8pmAx Men 9pmSwamp People
10pmOnly in America 11pm
Seven Deadly Sins 12amSwamp
People 1amAx Men 2amSeven
Deadly Sins 3amTreasure Houses
of Britain 4amPawn Stars
4.30amStorage Wars 5am-6am
Ancient Discoveries
DISCOVERY
7pmMythbusters 8pmHow Do
They Do It? 9pmJFK: The Ruby
Connection 10pmNazi UFO
Conspiracy 11pmThe Truth Behind
12amBear Grylls 1amJFK: The
Ruby Connection 2amNazi UFO
Conspiracy 3amDeadliest Catch
3.50amRiver Monsters 4.40am
Catastrophe 5.30am-6am
Destroyed in Seconds
DISCOVERY HOME &
HEALTH
7pmBabes in the Wood 8pm
Raising 10 Kids 9pmUntold
Stories of the ER 10pmA&E 11pm
Yorkhill 12amUntold Stories of
the ER 1amA&E 2amYorkhill
3amRaising 10 Kids 4amA Baby
Story 5am-6amBabys Room
SKY1
7pmThe Middle 8pmModern
Family 9pmMount Pleasant 10pm
Fringe 11pmStrike Back: Project
Dawn 12amBrit Cops: Rapid
Response 1amRoad Wars 1.50am
99 Most Bizarre 2.40amThe
Dresden Files 4.20amIts Me or
the Dog 5.10am-6amTabathas
Salon Takeover
BBC2 ITV1 CHANNEL4 CHANNEL5
S
A
T
E
L
L
I
T
E
&
C
A
B
L
E
TVPICK
6pmBBC News 6.30pmBBC
London News 6.55pmParty
Political Broadcast 7pmThe One
Show
7.30pmCHOICE Waterloo
Road: BBC News: Regional
News
8.30pmPlanet Dinosaur
9pmWho Do You Think You Are?
10pmBBC News 10.25pm
Regional News 10.35pmThe
National Lottery Wednesday Night
Draws: 10.45pmAsk Rhod Gilbert
11.20pmFILMOutrageous Fortune
1987; National Lottery Update
12.55amWeatherview1amSign
Zone: See Hear 1.30amWatchdog
2.30amBang Goes the Theory 3am
Village SOS 4am-6amBBC News
6pmEggheads: Quiz show,
hosted by Dermot Murnaghan.
6.30pmReel History of Britain
7pmEscape to the Country: A
couple search for a home in
West Sussex.
8pmNatural World
9pmDragons Den: How to
Win in the Den
10pmShooting Stars
10.30pmNewsnight: Weather
11.20pmToday at Conference
11.50pmToughest Place to Be
a Bus Driver
12.50amDamages
1.35amBBC News 4am-6amBBC
Learning Zone
6pmLondon Tonight
6.30pmITV News
6.50pmParty Political
Broadcast
7pmEmmerdale
7.30pmCHOICE Live UEFA
Champions League
10pmITV News at Ten
10.30pmLondon News
10.35pmUEFA Champions
League: Extra Time
11.35pmRugby World Cup
Highlights: Georgia v Romania.
12.05amGoodwood Revival 2011
1amThe Zone; ITV News Headlines
3amFILMGorillas in the Mist
1988. 5.15am-5.30amITV
Nightscreen
6pmThe Simpsons 6.30pm
Hollyoaks 6.55pm4thought.tv
7pmChannel 4 News
7.55pmChannel 4 Presents
Lee Pearson
8pmCHOICE Location,
Location, Location
9pmGrand Designs
10pmFresh Meat 10.55pm
Shameless 12.35amMusic on 4: On
Track 1.05amMusic on 4: 4Play:
Ghostpoet 1.20amMusic on 4: The
Album Chart Show: Spotlight
1.35amFILMCourage Under Fire
1996. 3.30amAccidentally on
Purpose 3.55amSmallville 4.40am
Countdown 5.25am-6.20am
Cookery School
6pmHome and Away
6.25pmOK! TV
7pm5 News at 7
7.30pmNew Highland
Emergency: 5 News Update
8pmUltimate Emergency
Bikers: 5 News at 9
9pmLaw & Order: Criminal
Intent
10pmBig Brother
11pmBanged Up Abroad
12amPoker: The Big Game
12.55amSuperCasino
4.05amMeals in Moments 4.15am
Brian Sewells Grand Tour 4.55am
County Secrets 5.10amWildlife
SOS 5.35am-6amHouse Doctor
1 2 3 4 5
6
7
8 9 10 11
12 13
14 15 16 17
18 19
20
21
22
7 20
45
35 10
3 9
6 16 10
45
7 4 11
5 7
22 34
45
9 6
13
3
8
16
29
11
15
23
23
8
17
19
14
13
34
7
6
10
28
9
24
14
12
Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Fails to hit (6)
6 Hooded waterproof
jacket (6)
7 Delicate, woven and
decorative fabric (4)
8 So ugly as to be
terrifying (7)
12 Of an Arabic
royal family (5)
13 Spew forth lava
and rocks (5)
14 Fix securely (5)
17 Blackbird (5)
18 Destroy the
peace of (7)
20 Hackney
carriage (4)
21 Morphine
derivative (6)
22 Plaid associated
with Scotland (6)
DOWN
1 Interfered with in
a troublesome or
hostile way (8)
2 Gives way or sinks
under pressure (8)
3 Hindu womans garment (4)
4 Metal rod used to
stir a re (5)
5 Take in with the
tongue (3,2)
8 Believer in a major
religion (5)
9 Retire from military
service (5)
10 Beat through cleverness
and wit (8)
11 Adult male horse (8)
15 Underground worker (5)
16 Distinctive spirit
of a culture (5)
19 Charter (4)

4

F L A T S T I M E S
R R O B E A I
U B O A T A C R E S
M P A T S
P O S S I B I L I T Y
H F A R N
P A I N S T A K I N G
R N E N L
O U I J A B O N G O
O E G L O W V
F O R G O A N K L E
8 9 5 7 9 3 7
1 7 5 3 9 6 2 4 8
8 3 1 8 7 6 9
3 6 1 2 5 1 2 3
1 5 2 2 1 1 6
4 6 9 7 8
7 4 5 8 2 7 1
2 1 8 7 8 3 9 4
3 2 7 1 5 1 3
5 3 9 2 1 7 4 8 6
8 6 4 7 9 5 1
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
CARTWHEEL
O
T
A
H
N S
P
Y
E
Sport
42
Ferguson fumes as sloppy United show
CHELSEA manager Andre Villas-Boas
has launched a passionate defence of
Frank Lampard and hit out at sugges-
tions the England stalwart is set for a
reduced role at the club this season.
The 33-year-old Lampard, who once
set a record for consecutive Premier
League appearances, has started three
of Chelseas last four matches on the
bench having been an automatic pick
under previous Stamford Bridge man-
agers.
Villas-Boas stopped short of con-
firming Lampard would return to the
starting line-up for tonights
Champions League clash with
Valencia and declared himself fed up
with answering questions about the
midfielders future.
Asked what he particularly took
issue with, the Portuguese said: The
fact that these players are changing
and that they are out and then they
are in and, What is the problem
with this player? and, How is he
going to react to a different situa-
tion?
I dont see things like that. We all
see things in the dressing room as
team objectives and collective objec-
tives, nothing else.
He added: Hes an established play-
er for Chelsea, for England, has noth-
ing to prove to the football world. Hes
a spectacular team player, a spectacu-
lar professional, and he will continue
to succeed at this club I think for the
rest of my years here.
MANCHESTER UNITED manager Sir
Alex Ferguson admitted his side were
given a wake-up call by Swiss out-
siders Basel after last nights draw
cemented their worst start to a
Champions League campaign for 13
years.
After the slightly fortuitous draw
against Benfica a fortnight ago,
United looked on course for a routine
victory when Danny Welbeck struck
twice within a minute just past the
quarter hour mark.
But Basel, who had troubled United
throughout, hit back in the second
half with quickfire goals from Fabian
Frei and Alexander Frei, before the lat-
ter completed a sensational turn-
around from the penalty spot with 14
minutes remaining.
Ferguson threw on Nani in a bid to
rescue a point and the Portugal
winger created the equaliser in injury-
time with a fabulous cross, converted
at the far post by Ashley Young.
I think we were careless. Its a
wake-up call in many ways. A lack of
concentration saw us give the game
away really...but we rescued it, said
Ferguson. To concede three goals at
home the defence and midfield have
Villas-Boas
maintains
his love of
Lampard
MANCHESTER CITY manager Roberto
Mancini insists Carlos Tevez has no
future at the club while he is at the
helm, after the Argentina striker
refused to come on as a substitute dur-
ing last nights comprehensive
Champions League defeat in Munich.
Having taken just one point from
their first two games, City now face an
uphill struggle to qualify for the
knockout stages after Mario Gomezs
first half brace inflicted a first loss of
the season on Mancinis side.
But the ramifications of Tevezs
snub, coupled with Edin Dzekos furi-
ous reaction to being withdrawn,
could have far more damaging conse-
quences for a side whose morale has
often been called into question.
While I am manager, Carlos will
not play again, said Mancini. I dont
want another situation like this.
Never. With me, he is finished. This
cant happen in a top club.
Do you think a player can do this at
Bayern Munich, AC Milan or
Manchester United? Never.
After the match, Tevez refused to
apologise or properly explain his
refusal to play.
I did not feel I was right to play so I
did not play, he said. I was the top
scorer at the end of last season. I
always act professionally so if Mancini
does not want to play me again that is
up to him.
Mancini was equally dismissive of
Dzekos behaviour the Serbia striker
threw his tracksuit top on the floor
after he was withdrawn early in the
second half.
If we want to improve to the level
of Bayern, some players need to
improve their behaviour, Mancini
said. Dzeko was unhappy but I should
be the one who is unhappy after his
performance.
The Tevez controversy largely over-
shadowed what was a masterful per-
formance from the German side, who
have now won 10 consecutive games
in all competitions and gone 928 min-
utes without conceding.
City could point to two early penal-
ty decisions that didnt go their way,
but Bayern deservedly took the lead in
the 38th minute when Gomez
pounced from close range after Joe
Hart had saved from Franck Ribery
and Thomas Muller.
And Hart was left frustrated again
on the stroke of half time when
Gomez reacted first after the England
goalkeeper had repelled Daniel van
Buytens header.
Its all over: Mancini
will never pick Tevez
again as City implode
DONT MISS
THE BEST
HORSES. JOCKEYS. RACING
ASCOT RACECOURSE
SATURDAY 15TH OCTOBER 2011
QIPCO BRITISH CHAMPIONS DAY
TICKETS FROM 26
FINE DINING PACKAGES FROM 265PP
GROUP AND ADVANCE BOOKING
DISCOUNTS AVAILABLE. BOOK NOW AT
WWW.BRITISHCHAMPIONSSERIES.COM
OR CALL 0870 727 1234
BY JAMES GOLDMAN
FOOTBALL
VALENCIA
CHELSEA
FOOTBALL
3
3
MANCHESTER UTD
FC BASEL
BY JAMES GOLDMAN
FOOTBALL
2
0
BAYERN MUNICH
MANCHESTER CITY
Tevez has started
only once for City
this season
Picture: GETTY
Bayern 2 2 0 0 4 0 6
Napoli 2 1 1 0 3 1 4
Man City 2 0 1 1 1 3 1
Villarreal 2 0 0 2 0 4 0
GROUP A
TEAM PLD W D L F A PTS
signs of weakness
to be better in terms of concentration.
If you lapse, the quality of the
Champions League can make you suf-
fer.
Goalscorer Welbeck, meanwhile,
admitted that, despite his first
Champions League strikes, the draw
felt like a defeat.
He said: We should be finishing
games like this, its not like us. Were
very disappointed with the result.
ENGLAND prop Matt Stevens is ready
and itching to return to the pack for a
heavyweight World Cup clash with
Scotland on Saturday.
Stevens missed last weeks drub-
bing of Romania with an ankle injury
but is fit again for the final, decisive
fixture in Pool B.
Scotland have even greater reason
to upset the Auld Enemy this time,
knowing that only victory will
uphold their proud record of always
reaching the quarter-finals.
But Saracens star Stevens (below)
insists they will not underestimate
their opponents motivation to get
one over on their Calcutta Cup rivals.
Weve been working hard, every-
one knows the pressure is on all
teams at this stage of the tourna-
ment. Weve done our homework and
we know the challenge thats in front
of us, he said.
We are happy with the way our
scrum is going, were happy with the
way the team is at the moment and
just looking forward to the
game at the weekend.
Wing Delon Armitage,
one of Englands outstand-
ing performers so far in
New Zealand, is also under
no illusions about the
threat Scotland will
pose.
It is going to
be massive, the
biggest game
of my career.
This is a
World Cup.
You lose, you go
home; you win, you
progress, said the
London Irish back.
They are very dan-
gerous but we are in the
same situation as them. We will
be up for it. We know how
Scotland will come at us. Every
year they come and try and turn
us over. We will be ready for it.
No8 Nick Easter, who featured in the
opener against Argentina but has
missed the last two games with a
back problem, boosted his hopes of
returning by successfully coming
through training yesterday.
43
HAILE REVEALING:
GEBRSELASSIE OPENS UP
CITY A.M. MEETS ETHIOPIAN LONG-
DISTANCE KING: TOMORROW
ENGLAND will travel to India for next
months one-day series without three
members of their Ashes win-
ning attack after the selectors
opted to rest James
Anderson.
With Chris Tremlett
and Stuart Broad injured,
Surreys 22-year-old pace-
man Stuart Meaker (inset)
has earned a first call-up
and is joined in the squad by
his county colleague, and fellow
native South African, Kevin Pietersen.
Englands most destructive bats-
man was given time off following the
Test series against India but has been
recalled as part of a 15-man squad
scheduled to play two warm-up
matches, five one-day internationals
and two Twenty20 fixtures.
A number of injuries and a deci-
sion to omit James Anderson in
line with our policy of man-
aging player workloads
gives opportunities for
other talented players to
continue to develop as
international cricketers,
said national selector
Geoff Miller.
Jos Buttler of Somerset and
Nottinghamshire opener Alex
Hales, who both made their interna-
tional debuts this summer, will join
the squad for the Twenty20 matches
in Kolkata.
Anderson rested for India
tour but Pietersen returns
Stevens vows England will
be ready for Scotch wrath
Armitage also talks
up threat posed by
Pool B showdown
RUCK OF THE IRISH | Italy eye decider
ITALY set up a winner-takes-all Pool C showdown against Ireland with a
bonus-point 27-10 victory over USA yesterday. Captain Sergio Parisse, fly-half
Luciano Orquera and Leicester prop Martin Castrogiovanni (above) touched
down, while a penalty try ensured they took the maximum five points. Italy
face Ireland on Sunday. Picture: GETTY
ARSENAL manager Arsene Wenger has
attempted to calm fears that captain
Robin van Persie could become the lat-
est big name to flee Emirates Stadium.
The Holland striker has been in the
most prolific form of his career since
January, scoring 26 times in his last 31
games for the Gunners.
But he has less than two years left
on his current contract and warned
this week that he is in no hurry to
commit any further yet.
But Wenger, speaking ahead of
tonights Champions League Group F
match against Olympiacos, argues it is
too early to worry about losing anoth-
er star.
You have to respect that he has
nearly two years to go, so lets not
make an immediate issue of some-
thing like that two years in football
is a very, very long time, he said.
On our side we are quite clear, so
that is no problem I do not say there
is no problem, because it does not
depend only on us but we are clear
with our intention.
Wenger wont
dwell on Van
Persie contract
ARSENAL
OLYMPIACOS
Results
=FFK98CC
L<=8:?8DG@FEJC<8>L<>IFLG8
9Xp\ieDle`Z_%%%%% ) ) DXe:`kp%%%%%%%%%%%%%%%%%%%% ' '
>fd\q*/#+, 8kk1-,#'''
EXgfc`%%%%%%%%%%%%%%%%%%%% ) ) M`ccXii\Xc%%%%%%%%%%%%%%%%%%% ' '
?Xdj`b(+
:XmXe`(. g\e 8kk1,,#'''
G N ; C = 8 >; Gkj
9Xp\ieDle`Z_%%%%%%%%%%%% ) ) ' ' + ' + -
EXgfc`%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% ) ( ( ' * ( ) +
DXe:`kp%%%%%%%%%%%%%%%%%%%%%%%%%% ) ' ( ( ( * $) (
M`ccXii\Xc%%%%%%%%%%%%%%%%%%%%%%%%%% ) ' ' ) ' + $+ '
>IFLG:
DXeLk[%%%%%%%%%%%%%%%%% ) * 9Xjc\%%%%%%%%%%%%%%%%%%%%%%%%%% ' *
N\cY\Zb(-#(.#Pfle^ 0' = =i\`,/
8kk1.*#((, 8=i\`-'#.- g\e
Fk\clc>XcXk`%%%%%%%%%% ' ' 9\e]`ZX%%%%%%%%%%%%%%%%%%%%%%%( (
8kk1('#''' 9ilef :\jXi+'
G N ; C = 8 >; Gkj
9Xjc\%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% ) ( ( ' , + ( +
9\e]`ZX%%%%%%%%%%%%%%%%%%%%%%%%%%%%% ) ( ( ' ) ( ( +
DXeLk[%%%%%%%%%%%%%%%%%%%%%%%%%% ) ' ) ' + + ' )
Fk\clc>XcXk`%%%%%%%%%%%%%%%%%% ) ' ' ) ( * $) '
>IFLG91:JB8DfjZfn)@ek\iD`cXe*#KiXYqfejgfi(C`cc\
(%>IFLG;1Cpfe);èXdfQXî\Y'#I\XcDX[i`[*8aXo'%
EGFN<I:?8DG@FEJ?@G
9i`^_kfe%%%%%%%%%%%%%%%%%( ( :ipjkXcGXcXZ\%%%%%%%%%%% ' *
9i`jkfc:`kp%%%%%%%%%%%%%( ) I\X[è^%%%%%%%%%%%%%%%%%%%%%% ' *
9liec\p%%%%%%%%%%%%%%%%%% + , Efkkd=fi%%%%%%%%%%%%%%%%%% ' (
:fm\ekip%%%%%%%%%%%%%%% ' ) 9cXZbgffc%%%%%%%%%%%%%%%%%%%( )
;\iYp%%%%%%%%%%%%%%%%%%%%% ' ( 9Xiejc\p%%%%%%%%%%%%%%%%%%%%%( (
;feZXjk\i%%%%%%%%%%%%%% ' ( ?lcc%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%( (
Gfikjdflk_%%%%%%%%%%%%( ) G\k\iYfif%%%%%%%%%%%%%%%%%% ) *
NXk]fi[%%%%%%%%%%%%%%%%% ' ) D`ccnXcc%%%%%%%%%%%%%%%%%%%%%% ' (
N\jk?Xd%%%%%%%%%%%%%% ' ' @gjn`Z_%%%%%%%%%%%%%%%%%%%%% ' (
:CP;<J;8C<98EBGI<D@<IC<8>L<
IXe^\ij%%%%%%%%%%%%%%%%% ' ) B`cdXiefZb%%%%%%%%%%%%%%% ' '
email sport@cityam.com
SPORT | IN BRIEF
Stricter whip-use rules backed
HORSE RACING: Top jockeys have
backed stricter rules on whips, which will
limit them to seven uses in a flat race and
eight per jump race. Flat star Frankie
Dettori said the move, which comes into
effect on 10 October, was in the best
interest of our great sport, while cham-
pion jockey Tony McCoy added: I for one
support the changes.
Ex-England man gets Aussie reins
CRICKET: Australia have named former
England bowling coach Troy Cooley as
their interim head coach, following the
resignation of Tim Nielsen last week.
Cooley, who returned to his native
Australia in 2006, currently heads up
their centre of excellence but has played
down plans to apply to be Nielsens long-
term successor.
Wiggins: I want it all in 2012
CYCLING: Britains Bradley Wiggins
insists he can combine bids for the Tour
de France and gold at London 2012.
Wiggins is desperate to win the Tour but
believes he can juggle both challenges.
The opportunity I have to win [the Tour]
is so great I cant afford to miss another
year, he said. I believe I can win the
Tour and Olympic gold. I want it all.
Basel 2 1 1 0 5 4 4
Benfica 2 1 1 0 2 1 4
Man Utd 2 0 2 0 4 4 2
Galati 2 0 0 2 1 3 0
GROUP C
TEAM PLD W D L F A PTS
BY JAMES GOLDMAN
CRICKET
BY FRANK DALLERES
RUGBY UNION
BY FRANK DALLERES
FOOTBALL
Our award-winning dealing platform combines

reliability and high-speed execution with
a range of vital resources, including our
professional-level charting package. You can
also deal securely on the move with our wide
variety of tailored apps for iPhone, BlackBerry
and Android devices.
So, dont put of switching any longer.
Call us on 020 7663 0305 or visit
igindex.co.uk/tradeup
Spread beting losses can exceed
your initial deposit.
HOW CAN YOU
EXPECT TO
PERFORM IF THE
PLATFORM YOURE
USING DOESNT?

Labour Turns Back On City: Why Miliband Has It Wrong On Private Equity

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Labour Turns Back On City: Why Miliband Has It Wrong On Private Equity

Hochgeladen von

Copyright:

Verfügbare Formate

EUROZONE ministers yesterday slammed

Brussels for pushing the idea that the

Stripping assets for a quick buck and treat-

Liberalism is left for dead by Labour

Goldman set to wield axe

THE Greek government managed to

RISING anxiety over the debt crisis

CRDIT Agricole, Frances third-

Let me tell you what the 21st century choice

This summers riots - not the first time

The Labour Party lost trust on the economy.

Bid for NAB

HOUSE PRICES in almost every US

MERCHANT banking group Close

QUERCUS LIFTED BY LARSSON AFTERGLOW

LORNA TILBIAN | NUMIS

JONATHAN JACKSON | KILLIK & CO

STEVE LIECHTI | INVESTEC

ANALYSIS l Daily Mail And General Trust

PAWNBROKER Albemarle & Bond saw

Our award-winning dealing platform combines

Das könnte Ihnen auch gefallen