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Issue 1,531 Tuesday 13 December 2011 FREE
RBS
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P8-9, P10
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do what the markets want.
Germanys DAX stock index fell
3.36 per cent yesterday, while Frances
CAC 40 dropped 2.61 per cent and the
FTSE 100 closed the day down 1.83 per
cent. Investors also rushed out of
peripheral bonds as fears that some
countries cannot pay their debts
resurfaced.
Yields on 10-year Italian debt hit
6.779 per cent at one stage, close to
the seven per cent danger zone
beyond which Greece, Ireland and
Spain had to be bailed out, before
falling back later in the day.
Spanish yields rose back above six
per cent, hitting 6.069 per cent, before
also edging down.
As a sign of investors seeking out
safe havens, yields on 10-year UK gilts
fell to a fresh low of 2.07 per cent,
before rising slightly to 2.102 per cent.
The euro fell 1.496 per cent against
the dollar to $1.32. Sterling, too, rose
0.94 per cent against the euro.
US stocks were also not immune to
the spreading panic, with the Dow
sinking more than 200 points during
trading before recovering slightly to
close down 1.34 per cent.
And shares in Commerzbank
plunged 7.8 per cent yesterday after
reports that the beleaguered bank
was in talks over a government
bailout a plan the firm denied.
Fears have been growing in recent
weeks over the German lender, which
must raise more than 5bn to meet
capital requirements by mid-2012.
MORE: P6, THE FORUM: P27
GLOBAL markets were shaken yester-
day as fears returned that govern-
ments will not manage to save the
Eurozone.
The honeymoon period that fol-
lowed last weeks euro deal proved all
too brief, making way yesterday after-
noon for a show of bitter disappoint-
ment from traders.
Stocks fell sharply, peripheral
Eurozone economies saw their bond
yields soar towards the danger zone
again, and the euro dropped as
investors fled risky assets once more.
Markets had risen last week as
Europes politicians raised hopes that
a solution to the crisis would be
agreed by Friday, allowing countries
to begin to plan how to pay down
their huge debts.
Leaders pledged to enforce good fis-
cal behaviour on governments, stop-
ping them running up large deficits
and so preventing a similar crisis aris-
ing in the future.
But many traders were left unim-
pressed by a deal that threatened to
come unwound almost as soon as it
was agreed.
Markets want a firm commitment
either for Germany to stand behind
the Eurozones debts or for the ECB to
step up its bond purchases, said Alex
Lawson, financial risk manager at
Moneycorp.
Investors still seem in love with
the euro, but it is beginning to slide
and only concrete action will begin to
halt or reverse that, he added.
Sooner or later the pain will
become acute enough for Germany to
BY TIM WALLACE AND JULIET SAMUEL
EUROZONE
HEDGE FUNDS
News
5 CITYA.M. 13 DECEMBER 2011
ANALYSIS l London Stock Exchange Group PLC
p
6Dec 7Dec 8Dec 9Dec 12Dec
860
840
820
800
780.00
12 Dec
SIMON Robey, Morgan Stanleys
UK chief executive and co-chair of
M&A, advised the London Stock
Exchange on this latest deal.
The LSE is just one of Robeys
star clients, but he has experienced
a tough year for dealmaking as
political issues have transpired to
prevent transactions going ahead.
He led the advisory work on the
LSEs ill-fated bid for Canadian rival
TMX this year, but the LSE was
forced to walk away after TMXs
Canadian shareholders blocked the
deal. Robey also saw BSkyBs
potential takeover by News Corp
abandoned after the phone hacking
scandal at the News of the World,
while his advice to BP on its last-
ditch efforts to save its Arctic tie-
up with Rosneft foundered on
tensions with TNK-BP.
Robey is known as a star at
Morgan Stanley, however, and over
the years he has acted for UK
chocolate maker Cadbury in its
11.5bn sale to US rival Kraft last
January, and on Santanders pur-
chase of Abbey National in 2004.
Robey was a choral scholar at
Magdalen College, Oxford. He is
the chairman of the Royal Opera
House and has held a season ticket
at Arsenal for more than 20 years.
ADVISERS: MORGAN STANLEY
SIMON ROBEY
UK CHIEF
EXECUTIVE
LSE chief exec Xavier Rolet bought the rest of FTSE Picture: Micha Theiner/CITY A.M
THE UK will work to repatriate powers
from the European Union while still
seeking a resolution to the Eurozone
crisis, David Cameron told MPs yester-
day, as he robustly defended his deci-
sion to veto a new treaty agreement in
last weeks summit.
With deputy PM Nick Clegg conspic-
uous in his absence, Cameron stressed
that his actions on Friday prevented
the EU exerting more control over UK
financial services, and repeated his
stance that he protected our interests.
Opposition leader Ed Miliband
attacked Cameron for allowing the UK
to be left behind and failing to
build alliances with other nations,
though he failed to say whether he
would have signed the new treaty.
Cameron received warm support
from many previously hostile
Conservative MPs.
But Clegg, who has called the veto
bad for Britain, failed to show his
face in the Commons for Camerons
speech, claiming his presence would
have been a distraction.
John Redwood came out as one of
Camerons strongest backers, saying
the use of the veto had made Britains
position stronger allowing the Prime
Minister to attack Labours record in
negotiations as flimsy. Laying out his
hopes for the EUs future, Cameron
explained that markets need more
reassurance to prevent a collapse.
Markets want to be assured that
the firewall is big enough, that banks
will be recapitalised and Greeces crisis
is properly dealt with, he told the
House of Commons.
PM: We will
bring powers
back from EU
MOODYS has placed eight Spanish
banks on review for possible down-
grade, in light of a worse than expect-
ed economic outlook and exposure to
real estate.
The ratings agency said 21 financial
institutions have also had their ratings
cut after a review of systemic support.
And it warned yesterday that more
Eurozone banks and governments
may have their credit ratings cut if
they do not find a solution to the sov-
ereign debt crisis soon.
Moodys said the communiqu
issued by European leaders on Friday
contained little substance.
Risks to the cohesion of the
Eurozone continue to rise, the
agencys report read.
Adverse economic conditions are
becoming more likely the longer any
solution is postponed for, and would
add to the already sizeable challenges
facing the authorities coordination
and debt reduction efforts.
Ratings will be revised in the com-
ing weeks and months in the absence
of any decisive policy initiatives that
stabilise credit market conditions
effectively.
CBI lashes out at political
row over Camerons veto
RECRIMINATIONS over David
Camerons veto last Friday are under-
mining efforts to secure the single
market and unnerving businesses, the
Confederation of British Industry (CBI)
claimed yesterday.
The group stressed that thousands
of jobs rely on trade with Eurozone
economies, and so the coalition gov-
ernment must re-double its efforts to
ensure that the UK is not put at an eco-
nomic disadvantage.
It is ironic that the focus on the
British veto has overshadowed the
pressing issue of Eurozone stability
which is critical to all British business-
es, said CBI director general John
Cridland.
The reality of this summit is that
some useful steps were taken on fiscal
unity but not enough was done to
secure the Eurozones future, he said.
The CBI is now calling for the
European Central Banks position
and potential to be a lender of last
resort to governments to be resolved.
The UKs economic future will con-
tinue to hang in the balance until it
has been sorted, Cridland continued.
Nonetheless, he acknowledged that
David Cameron had responded to
legitimate concerns over other
European leaders proposals.
Spanish banks on
downgrade watch
BY TIM WALLACE
POLITICS
EUROZONE
EUROZONE
World Economy
6 CITYA.M. 13 DECEMBER 2011
CITY STILL WITHIN OUR GRASP, SAYS REHN
BRITAINS veto of a new European treaty to tighten fiscal oversight of states will not stop
Europe regulating the City, Olli Rehn, the European Unions economic and monetary affairs
commissioner, said yesterday. Rehn said the UKs veto was a matter of regret as Europe did
not want it on the sidelines. The European Commission, meanwhile, said yesterday it would
fund a 100m (84.6m) fund to free up government data for public use. Picture: Reuters
US LAWMAKERS agreed late last
night to fund the government
through next year, potentially avoid-
ing a shutdown that would have fur-
ther eroded Congres tattered
reputation ahead of the 2012 elec-
tion.
A group of Republican and
Democratic politicians in charge of
government spending agreed on
how to fund crucial government
functions until the current fiscal
year to the end of October 2012, con-
gressional aides said.
Politicians are expected to publish
the massive spending bill, also
known as the omnibus, today.
The House of Representatives and
the Senate must still vote in favor of
the spending bill before a temporary
funding measure expires on Friday.
A Senate panel also said yesterday
that it had agreed new sanctions
against Irans central bank, and
frozen $700m in aid payments to
Pakistan, in a bid to curtail the
movement of explosives into
Afghanistan.
US agrees a
funding deal
for next year
US ECONOMY
PlayBook
SAVE 150
WAS
399
16GB TABLET PRICE
249
SAVE 150
WAS
479
32GB TABLET PRICE
329
SAVE 150
WAS
559
64GB TABLET PRICE
409
34.99
1 BlackBerry
Convertible Case
THE FINANCIAL Services Authority
(FSA) participated in a mass delusion
that drove markets and underlay a
flawed regulatory regime in the run-
up to RBSs collapse, the authority con-
cluded yesterday in its long-awaited
report on the collapse of the bank.
The FSA had a tendency to share
the delusions of the then conventional
confidence, the report says.
But the regulator also points the fin-
ger at RBSs management and at pres-
sure from the previous government.
FSA chairman Lord Adair Turner
blamed underlying deficiencies in
RBS management, governance and
culture for causing bad decisions.
Those mistakes were left unchecked
by regulators inadequate scrutiny
due to pressure to run a light touch
regime, the report suggests.
Ed Balls, now shadow chancellor
and then economic secretary to the
Treasury, is singled out as keen to pro-
mote a lightly resourced regulator.
In particular, under the regime Balls
praised for its efficiency, Turner com-
plains that the FSA had just five people
responsible for supervising RBS in
2007, a job now done by 23 people.
The report also condemns RBSs
executives for overseeing an aggres-
sive expansion of its balance sheet
fourfold in four years while having
little idea of its capital levels and vul-
nerability to high-risk asset classes.
Executives and the board were not
sufficiently aware of their exposure,
the report says.
As possible remedies, Turner sug-
gests automatically barring directors
of a collapsed bank from future
finance jobs and beefing up the UKs
pay rules, already the worlds strictest.
FSA admits it
joined market
mass delusion
Lord Adair Turner blamed underlying deficiencies at RBS management Pic: REUTERS
BY JULIET SAMUEL
BANKING
2
5
.5
b
n
Total am
ount injected into RBS by the U
K
governm
ent
INVESTIGATION OF
A BANK FAILURE
ANALYSIS l Royal Bank of Scotland Group PLC
p
2006 2007 2008 2009 2010 2011
100
200
300
400
500
600
20.56
12 Dec
RBS REPORT: AT A GLANCE
Why publish this report?
Last year the FSA caused a public outcry
by saying it would take no action against
RBS chief executive Fred Goodwin and
others despite a 17-month investigation.
After pressure from MPs such as Andrew
Tyrie, it agreed to produce a full report.
Cause of RBS losses
The FSA said the rapid expansion of
RBS global banking and markets (GBM)
division under chairman Johnny Cameron
was behind its huge losses. The market
view that RBS had been visibly aggres-
sive in expanding into high risk areas
destroyed confidence, adding to its losses.
Focus on profit, not balance sheet
The FSA cited RBS investors that said
Goodwins pay rewarded earnings growth
rather than balance sheet strength. The
FSA said RBS was slow to realise, during
the course of 2007, that the risk it was
facing was not only to its annual profit
targets, but massively greater and
amounting to a major balance sheet hit.
ABN Amro takeover
The FSA has pledged far greater scrutiny
of major bank takeovers. RBS did not
have to seek regulatory approval to buy
ABN Amro but the FSA admits it could
have blocked the deal by other less
direct means... if really determined.
Making executives accountable
The FSA wants bank executives to take
fewer risks. It suggested making execu-
tives strictly liable for the impact of bad
decisions to make it easier to fine or ban
them after a collapse, or structuring pay
so they are penalised for poor decisions.
But it warned a strict liability basis for
action risked breaching human rights and
could discourage people from top jobs.
Other regulatory reforms
The FSA also proposes wider reforms,
including new leverage requirement to
make sure banks focus on leverage as
well as capital ratios. It wants the power
to block hostile bank takeovers, and more
assessment of how far a banks capital
resources depend on minority interests.
The FSA also wants to check how banks
calculate their regulatory capital position,
and if a firms shortcomings force the FSA
to delay its capital guidance, the require-
ments it sets in the interim will be
tougher than normal.
Amending past mistakes
The regulator has belatedly beefed up its
supervision of RBS from just six people in
August 2007 to 23 today. It says its
supervision regime has been radically
transformed with a greater focus on
capital, liquidity and asset quality.
Whos to blame
The previous government, RBS executive
management and board and the FSA
itself all shared the blame for the banks
collapse. The FSA shared the delusions
of the conventional confidence of the
time, it admitted.
Labour light touch regulation
The regulator said if it had suggested
tougher oversight of banks before the cri-
sis, there would have been extensive
complaints that the FSA was pursuing
a heavy-handed, gold-plating approach
which would harm Londons competitive-
ness. It quotes Ed Balls, then economic
secretary to the Treasury, endorsing light
regulation and then chancellor Gordon
Brown opposing intrusive oversight.
Why there were no sanctions
against Fred Goodwin and others
There was not enough evidence to bring
Goodwin or others from RBS either to
court or a tribunal, the FSA said, as RBS
failure did not automatically make its
chief executive personally liable. The FSA
would have to prove a particular execu-
tive was incompetent, dishonest or lacked
integrity. RBS executives made many
poor decisions, but the errors were not
enough to take action.
On management failures:
RBS management and board
undoubtedly made many decisions which,
at least in retrospect, were poor
On the ABN Amro acquisition:
the board decided to go ahead with it on
the basis of due diligence which was clearly
inadequate relative to the risks entailed
On regulatory supervision: The key prudential
regulations being applied by the FSA, and by
other regulatory authorities across the
world, were dangerously inadequate
THE CITY regulator has vowed to get
deeply into the guts of any future
financial services takeover on the scale
of Royal Bank of Scotlands acquisition
of ABN Amro.
Chairman Lord Turner said the
Financial Services Authority would
take a far more proactive approach
today to the 71bn (47bn) takeover of
the Dutch bank, led by RBS with Fortis
and Santander in 2007.
Now we would be deeply into the
guts of whether we were going to let
you publish details of a bid, Turner
said yesterday at a briefing.
He spoke out after the FSA made a
series of damning criticisms of Fred
Goodwins mega-deal. The report high-
lighted RBS limited due diligence,
which amounted to little more than
two lever arch files and a CD.
Turner used his foreword to call for
regulators to be required to give
approval for major bank deals because
society has an interest in the major
risks which banks take, not just man-
agement, board and shareholders.
The main report also contains a
series of detailed criticisms of how the
deal, a misjudgement with cata-
strophic consequences, would hit
RBS capital base and the confidence
of the market.
The decision to fund the acquisi-
tion primarily with debt, the majority
of which was short-term, rather than
equity eroded RBSs capital adequacy
and increased its reliance on short-
term wholesale funding. The acquisi-
tion significantly increased RBSs
exposure to structured credit and
other asset classes on which large loss-
es were subsequently taken.
Two years later Sir Philip Hampton,
who took over from Sir Tom McKillop
as chairman, described the ABN Amro
deal as the wrong price, the wrong
way to pay, at the wrong time and the
wrong deal.
It falls to Johnny Cameron, however,
the former investment banking chief,
to explain how the 21bn takeover of
NatWest in 2000 left the board over-
confident about its ability to pull-off
transformative deals.
I think that lulled us into a sense of
complacency... The fact is that the
acquisition of ABN was also hostile. We
got bits and pieces of information but
fundamentally it was hostile. Theres
this issue of did we do sufficient due
diligence[?] Absolutely not. We were
not able to do due diligence that was
part of doing a hostile acquisition.
FSA vows no
repeat of ABN
Amro fiasco
BY PETER EDWARDS
BANKING
News
12 CITYA.M. 13 DECEMBER 2011
BEHIND THE SCENES AT ENDEMOL
Q.
WHAT IS TIME WARNER
HOPING TO ACHIEVE?
A.
Time Warner has turned its
eyes to Europe: of the compa-
nys 20 deals in the last few years,
about 80 per cent have been out-
side the US. Endemols deadline for
sorting out its finances is today, so
this is an opportune time for Time
Warner to make its move.
Q.
HOW HAS ENDEMOL
RESPONDED TO TIME
WARNERS APPROACH?
A.
It says the revised offer does
not really change anything.
Endemols negotiations with
lenders have been going on for
about a year, and the far more
likely option, according to one
source, is that the bid will not be
accepted.
Q.
WHY DOES ENDEMOLS DEBT
NEED RESTRUCTURING?
A.
Endemol is currently 2.8bn in
debt. When the TV company
was acquired by Goldman Sachs,
Mediacinco and Cyrte in May 2007,
these companies raised the debt
financing. Endemol has struggled
to meet the required interest pay-
ments, partly because the enter-
tainment industry has taken a hit
lately. The company has been in
discussion with its creditors for a
year or so about revising its capital
structure to avoid the breaching of
loan covenants. A waiver was
extended last month, which
expires today.
Q.
WHAT WILL THE DEBT
RESTRUCTURE INVOLVE?
A.
The existing debt is expected
to be written down significant-
ly and in return the lenders will
receive equity in the business. This
will require two thirds of the
lenders support to go through.
Endemols loan covenants will be
revised and it will be left with a
smaller amount of debt to service.
Q.
WHAT WILL HAPPEN NEXT?
A.
It is likely that Time Warners
bid will not be successful and
the lenders will write Endemols
debt down to around 500m.
PETER
MARSHALL
CO-HEAD OF
EUROPEAN
RESTRUCTURING
ANALYSIS l Time Warner Inc
$
6Dec 7Dec 8Dec 9Dec 12Dec
34.80
35.00
34.60
34.40
34.20
34.00
34.24
12 Dec
THIS CHRISTMAS
ENCHANTING TASTES, EXOTIC
INFLUENCES, EXTRAORDINARY GIFTS
Impress those who matter most with
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Visit www.eicfinefoods.com/cityam for special offers
GIFTS TO INSPIRE AND INTRIGUE...
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Virgin wades
back into the
fight for BMI
Houlihan Lokey is advising Endemol
through its debt restructuring process
and will be on call to offer its advice
on Time Warners revised bid.
Leading the team is Peter Marshall,
a managing director at Houlihan
Lokey and co-head of the firms
European restructuring department.
A specialist in corporate restructuring
and turnaround, he has experience in
complex cross-border transactions, so
should be well-equipped to advise
Endemol in this case.
Marshalls previous clients include
Gate Gourmet, Welcome Break
Group, 20:20 Mobile Group and JVH
Gaming.
He is joined by Gijs de Reuver, a
director at Houlihan Lokey. Formerly
vice president of Houlihan Lokey
Howard & Zukin and an executive
director of Goldman Sachs, de Reuver
focuses on financial restructuring.
Endemols creditors, which include
Goldman Sachs, RBS, Apollo,
Centrebridge, Barclays and the
Lehman Brothers estate, are being
advised by Rothschild.
Charles Armitstead is managing
Endemols communications in this
case. He recently left FTI Consulting
to work for Pendomer
Communications.
Big Brother contestant
Pamela Anderson.
Programme creator
Endemol, led by president
Marco Bassetti (inset), is
2.8bn in debt
Picture: REX
Q A
&
BY MARION DAKERS
TRANSPORT
ADVISERS:
HOULIHAN LOKEY
Intel sales hit
by Thai hard
drive drought
SHARES in US chip maker Intel fell
more than four per cent in trading yes-
terday as it warned that supply short-
ages of computer hard drives caused by
floods in Thailand would hurt its rev-
enue in the current quarter.
More than 600 people have died in
the flooding, which has caused billions
of dollars in damages since July and dis-
rupted international supply chains in
the PC and automobile industries.
In the last two weeks, as the supply
became more apparent, we saw a sub-
stantial change in our order rate. Most
of our customers are concerned the
shortage will continue especially
through the early part of the first quar-
ter, said Intels senior vice president
Tom Kilroy on a conference call.
Intel said customers were reducing
their stock of chips in anticipation of
the hard drive shortage continuing
early next year.
BY ALISON LOCK
TECHNOLOGY
News
CITYA.M. 13 DECEMBER 2011 19
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* These views are those of the individuals below and not necessarily those of their company
CITY VIEWS: WHAT ARE THE MOST DESIRABLE
TECH ITEMS THIS CHRISTMAS? Interviews by Kasmira Jefford
KENNY BHATTI
EGLIN HOLDINGS
MICHELLE OCONNELL
INVESTMENT SOLUTIONS
I will be looking to buy
Apple products like the
Mac book pro or the LED
cinema display, which is
better to work with and
watch films. I am
also waiting for
Apple around
February to
release its
televi-
sion.
In terms of whether I am
buying them for other peo-
ple this Christmas, I would
say no, because most peo-
ple I know have got the
gadgets they need. Those
into their gadg-
ets are waiting
for the next big
thing to come
out like
the iPad.
ANALYSIS l CSR
p
6Dec 7Dec 8Dec 9Dec 12Dec
185
190
195
200
180
175
170
165
183.10
12 Dec
NEWS | IN BRIEF
OFT tobacco fines overturned
Imperial Tobacco and several leading
retailers have won a court battle to over-
turn record fines imposed by the Office of
Fair Trading (OFT) over allegations of
unlawful pricing. A fine of 112.3m hand-
ed down to Imperial Tobacco last year
was reversed, while Morrisons, Asda, Co-
Op and Shell also had cases against them
overturned by the Competition Appeal
Tribunal. The original tribunal related to
promotional deals between Imperial and
the retailers in 2000-03, and resulted in a
record total fine of 225m after the OFT
alleged unlawful pricing deals.
Thyssen sells superyacht business
ThyssenKrupp has sold its Blohm + Voss
superyacht and two other marine units to
British buyout firm Star Capital, in a deal
worth up to 150m, as the German steel-
maker focuses instead on building military
vessels. The sale is part of the companys
10bn divestment plan begun this year to
lower its debt, including a spin-off of its
stainless steel division. Among Blohm +
Vosss superyachts, the biggest by far was
Roman Abramovichs Eclipse, a 557-footer
equipped with two heli-pads, a pool and a
missile-detection system.
Martin Marietta bids for Vulcan
Construction aggregates maker Martin
Marietta Materials has made an unsolicit-
ed $5bn offer to buy larger rival Vulcan
Materials in stock, in a bid to create the
global leader in the industry. The compa-
nies began considering a deal more than a
year and a half ago, but Vulcan broke off
talks in recent months. CJS Securities
analyst Arnold Ursaner said the deal
makes sense because of the synergies it
offers, but that Vulcan may reject it.
ADVERTISEMENT
I dont have any requests
per say for any tech
devices. I basically have
everything I need through
work so I dont need to
buy them a second
time for person-
al use. Im also
unlikely to
buy things
for the
house.
JESSICA REEVES
LEAP CR
SHARES in Areva Frances state-owned
nuclear energy company were sus-
pended in Paris yesterday after losses
associated with the Fukushima crisis
in Japan took their toll.
The nuclear reactor maker had been
expected to take heavy writedowns
related to cancellation of orders.
The declining value of UraMin, a
Canadian uranium miner bought by
Areva in 2007 for 1.9bn (1.6bn), was
also taking its toll.
French industry minister Eric
Besson sounded the alarm at the week-
end, indicating that Areva was on the
ropes. The French state owns 87 per
cent of the company.
Chief executive Luc Oursel met with
the companys board yesterday to ham-
mer out restructuring plans which
include job cuts in its international
operations.
The firm plans to write off 2.36bn
from its accounts this year and expects
an operating loss for 2011.
Areva said it had asked for the sus-
pension shortly before the market
opened yesterday. The NYSE Euronext
stock market operator immediately
suspended trading.
Areva is a world leader in the field of
nuclear energy facilities, but the out-
look for the sector has been heavily
clouded by a switch in sentiment away
from nuclear energy in some coun-
tries, notably in Germany, in light of
the disaster at Fukushima in Japan.
The group faces a huge exceptional
charge that will push it into a loss for
the first time in 10 years.
UraMin was sold to Areva just two
years after it joined Londons junior
stock market with a 120m market
value. The French government backed
the firms decision at the time.
The huge spike in its value in 2007
reflected a $138 a pound price tag for
uranium at the time at the time
because of upbeat outlooks on the
future of nuclear reactors.
However, uranium is now priced at
less than $60 a pound as the
Fukushima events have led several
states to decide that nuclear power is
no longer an option for their power
production.
UK-LISTED explorer Gulfsands
Petroleum and Chinese company
Sinochem have shut down their oil
operations in Syria following
European Union sanctions related to
the crackdown on the uprising
against the rule of President Bashar
al-Assad, Gulfsands said.
Although China has resisted sanc-
tions on Syria, Sinochem is bound by
EU sanctions since it bought its inter-
est in the Syrian fields by taking over
UK-listed Emerald Energy, through
which it still owns the assets, a
Gulfsands spokesman said.
Syrian state-controlled General
Petroleum Corporation (GPC) will
continue to produce oil from the
fields, in exploration block 26.
Analysts said the further develop-
ment of the block would be delayed.
The Syrian fields are the only cash-
generating assets Gulfsands owns,
but a spokesman said it had $120m
on the balance sheet and no debt.
Gulfsands shares dropped 8.7 per
cent to 170p yesterday.
Areva halts
trading over
nuclear loss
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BP is over the worst phase of its
problems after the Gulf of Mexico
oil spill, chairman Carl-Henric
Svanberg (right) claimed yester-
day, clearing the way for him to
lead the board at world number
two truck maker Volvo.
The Volvo nomination commit-
tee said in a statement it had
backed Svanberg to head the
board at Volvo. Svanberg has been
chairman of BP since January
2010.
Svanberg, who had to apologise
for referring to those hurt by the
April 2010 oil spill as small peo-
ple, said that his working week
at BP was about two to three days.
We are no longer in the acute
crisis phase of the oil spill situa-
tion, he said, adding that most of
the work now was related to
dealing with compensa-
tion issues.
But he said his ambition
was to leave the board of
mobile network gear maker
Ericsson, where he is a direc-
tor and where, from
2003 until 2009,
he was president
and chief execu-
tive.
I think that he should be able
to handle these two jobs [at BP
and Volvo], but not anything else.
One of the most important things
is that the nomination committee
has taken up the question of
whether he can handle both posi-
tions, said Helena Levander,
head of Nordic Investor
Services, which offers advice
and analysis on corporate gover-
nance issues.
In a Swedish merry-go-round,
Volvos former chief
executive officer, Leif
Olofsson, became
chairman of Ericsson
earlier in the year.
Svanberg plans to keep BP chair
as he takes on new role at Volvo
BY HARRY BANKS
MANUFACTURING
E.ON lowers
profit range
on charges
GERMAN utility group E.ON will
bear a 3bn (2.6bn) charge in its
2011 accounts as large Eurozone
countries such as Spain and Italy
intervened to lower prices, it said yes-
terday.
E.ON, the worlds biggest utility
company by sales, said the charge
would damage its overall net profits,
and lowered the top end of its profit
range to 2.5bn from 2.6bn.
Net profit is now expected to be
within the range of 2.1-2.5bn, while
its adjusted earnings before interest,
tax, depreciation and amortisation
in 2011 is expected to be between
9.1-9.3bn. It had previously forecast
adjusted Ebitda of up to 9.8bn.
The company said the biggest
chunk of the charges, 2.1bn, were
due to a pessimistic outlook for long-
term power prices in Spain and Italy,
as well as reduced load hours for gas
and coal power plants in those coun-
tries.
In addition, lower than expected
volume and margin assumptions for
some of E.ONs Eastern European
spread generation assets in Hungary
and Slovakia trigger an impairment
of 0.4bn. In central Europe, mainly
in Benelux, impairments amount to
0.5bn, it said.
Along with peer RWE, E.ON is cur-
rently suffering from the fallout
from Germanys decision to exit
nuclear power, leading to shrinking
profits, massive job cuts as well as an
asset disposal programme.
BY ALISON LOCK
ENERGY
NEWS | IN BRIEF
Cosalt chair talks up his offer
Cosalt chairman David Ross has writ-
ten to investors urging them to accept
his offer to buy their shares in the
embattled firm. Ross, who wants to
de-list the company, has made a
400,000 offer for the marine safety
equipment provider Cosalt. Carphone
Warehouse founder Ross said in the
letter, published yesterday: Without a
sufficient inflow of finance into the
business, the companys whole future
is at stake and its options are extreme-
ly limited. Shareholders have until 20
December to accept his controversial
offer of 0.1p per share.
Xcite looks to appease investors
Xcite Energy said yesterday a viable
and more financially efficient means
of commercialising the Bentley North
Sea oil field was being investigated,
after shareholders had expressed con-
cerns over an apparent lack of
progress. The department of energy
and climate change must first sign-off
the Bentley field development plan.
Xcites shares fell 4.8 per cent.
Essar execs charged with fraud
India's federal police yesterday filed
fraud charges against five executives
at Essar Group the parent company
of London-listed Essar Energy and
Loop Telecom, as part of a sprawling
probe into a multi-billion-dollar tele-
coms case. Fraud and criminal conspir-
acy charges have been filed against
billionaire Ravi Ruia, vice chairman of
Essar Energy, and his brother
Anshuman Ruia. The firm denied all
charges in a statement, adding that it
would take legal recourse.
News
21 CITYA.M. 13 DECEMBER 2011
Gulfsands shuts down its
Syria project amid unrest
BY HARRY BANKS
ENERGY
News
22 CITYA.M. 13 DECEMBER 2011
NEWS | IN BRIEF
Train stations to house offices
Workers struggling to get to the office
during the Olympics will be able to work
from train stations through a new ven-
ture by Network Rail. The 40m move,
made in conjunction with The Office
Group, will see flexible office space
spring up at five London stations. The
first drop-in hub, which should be ready
by mid-2012, will accommodate up to
250 people in a range of flexible office
sizes at Paddington Station.
Centaur Media in new Venture
Centaur Media, the business informa-
tion and events group, has acquired
Venture Business Research (VBR), a
specialist digital data and analytics
business in the clean energy and global
security sectors, for a maximum pay-
ment of 7.5m. The cash consideration
comprises an initial payment of 2.5m
at completion and a further payment,
subject to VBR's performance in the
year to 30 June 2015.
Mac App Store passes 100m mark
Apple yesterday said it has passed
100m downloads from its Mac App
Store the version of its online shop
installed on its range of laptop and desk-
top computers in less than a year.
Apples main app store has more than
500,000 apps and more than 18bn cus-
tomer downloads, with the total grow-
ing at more than 1bn a month.
SWISS Re said yesterday chief execu-
tive Stefan Lippe (pictured) will take
early retirement after roughly three
years at the helm, in a surprise move
that analysts said added a new ele-
ment of uncertainty to a company
which Lippe had helped stabilise.
No reason was given for the depar-
ture, which Swiss Re said would take
effect next year. Some analysts saw
reinsurance chief Christian
Mumenthaler as likely successor, but
Swiss Re said it will also look outside
for candidates for the position.
The 56-year-old Lippe informed the
Zurich-based firms board over the
weekend of his decision, a Swiss Re
spokesman said. In a statement, Lippe
cited the turnaround of the reinsurer
as the appropriate time to step down.
The board of directors very much
regrets Stefan Lippes decision to
retire early after almost three
decades at Swiss Re, chairman
Walter Kielholz said. A successor
will be appointed soon, Swiss
Re said.
Analysts said
the departure was
a note of uncer-
tainty at Swiss
Re after Lippe
ushered in an
era of greater
stability fol-
lowing a push to take more risk under
his predecessor, Jacques Aigrain.
Lippes main achievement was
steadying Swiss Re after it lost its AA
rating in 2009 when risky invest-
ments jeopardised its capital
base, prompting a SwFr3bn
(2.05bn) loan from Warren
Buffetts Berkshire Hathaway.
Swiss Re repaid the Buffett
loan late last year
and in October
won backing from
ratings agency
Standard & Poors,
which lifted its
credit rating for
the reinsurer to
AA- from A+.
Lippe plans to retire
early from Swiss Re
BY HARRY BANKS
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www.cityam.com
ANALYSIS l CPPGroup
p
7Dec 8Dec 9Dec 12Dec
140
150
160
130
120
110
117.00
12 Dec
Chief exec Paul Stobart faces a challenge in restoring investor confidence in CPP
ANALYST VIEWS: WILL CPP GROUP RECOVER
AFTER A WEAK PERFORMANCE? Interviews by Peter Edwards
BY JULIAN HARRIS
EMPLOYMENT
BY TIM WALLACE
UK ECONOMY
NEWS | IN BRIEF
Japans consumer morale drops
Japanese consumer confidence in
November worsened from the previous
month, a Cabinet Office survey showed
yesterday, suggesting that turmoil
from Europe's debt crisis and slowing
global growth are weighing on senti-
ment. The survey's sentiment index for
general households, which includes
views on incomes and jobs, was 38.1 in
November, down from 38.6 in October.
The Japanese Cabinet Office down-
graded its assessment to say that con-
sumer confidence is almost flat.
Previously, it had said the pace of pick-
up in consumer confidence was moder-
ating. Any reading below 50 suggests
consumer pessimism.
ANALYSIS l Europes economy is slowing
Composite
leadingindex
2001 2003 2005 2007 2009 2011
100
105
110
95
90
Barclays
Barclays corporate and employer solu-
tions business has recruited Paul
Wilson as head of employee benefit
consulting and Chris Mowatt as head
of the banks global stock and reward
services division. Wilson joins from St
Jamess Place Wealth Management
and Mowatt moves from Morgan
Stanley Smith Barney.
Towers Watson
The professional services company
has hired Claire Farrelly as a director
in its risk consulting and software
business. Farrelly joins the companys
Reigate office from KPMG, where she
led two of the UK regional actuarial
consulting teams.
Lombard Odier
Lombard Odier Investment Managers
has appointed Jan Straatman to the
newly created position of chief invest-
ment officer (CIO), effective from 1
March 2012. Straatman joins from
ING Investment Management, where
he was global CIO.
Aviva
Paul Sahota, the former head of insur-
ance at specialist risk consultancy
Avantage, has been confirmed as the
new audit director at Aviva. Sahota,
who previously held senior risk advi-
sory roles at AXA, AIG, Deloitte and
KPMG, will lead the global audit func-
tions response to the emerging
Solvency II regulation.
Rockspring
Rockspring Property Investment
Managers has hired Ben Lonsdale as
senior research analyst. Lonsdale
joins from DTZ, where he was an eco-
nomics consultant.
Avoca Capital Holdings
Tarek Saber and Jasper Van Ingen, who
worked together at Dutch asset manag-
er APG, have joined the investment man-
ager as chief executive of convertible
bond strategies and senior portfolio
manager respectively. In addition,
Jonathan Sharkey, previously chief oper-
ating officer at Lydian Asset
Management, joins as head of operations
and Darren Carter, former chief execu-
tive of KBC Financial Products and non-
executive chairman of Peel Hunt,
becomes a partner and a co-investor in
Avocas new convertible bond venture.
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
Wall Street slides
on European fears
U
S stocks tumbled yesterday, as
concerns about Europe
returned to the forefront
after major credit ratings
agencies warned that European lead-
ers had not done enough to tackle the
regions debt crisis.
The decline was broad. All ten S&P
industry groups ended in negative
territory, and most dropped more
than one per cent. Banks took the
biggest hit, while technology shares
also fell after Dow component Intel,
the worlds largest chip maker, low-
ered forecasts for quarterly revenue.
After initial elation on Friday over
an agreement reached at an EU sum-
mit to enforce tighter budget control
over the Eurozone, the mood turned
yesterday as more doubts arose over
whether the measures would be
enough to quell the debt crisis.
The pact that was agreed upon by
European officials still has a long way
to go in order to come to fruition, and
that leaves the market open to riot,
said Mark Luschini, chief investment
strategist at Janney Montgomery
Scott.
Fitch Ratings said failure by
European Union leaders to come up
with a comprehensive solution to
the regions debt crisis has increased
short-term pressure on debt ratings of
Eurozone countries.
Investors in Europe gave their ver-
dict by spurning Spanish and Italian
debt, causing borrowing costs to rise.
The yield on Italys benchmark 10-
year note again came within range of
seven per cent, seen as a danger zone,
but recovered to close at 6.6 per cent.
Were seeing that sentiment sur-
face in Italian bond yields, and that
suggests the market is still highly
sceptical of any solution to the risk of
significant default that could be
brought forward in the coming days,
Luschini said.
US banks were among the worst
performers on renewed concern that
problems in Europes financial sys-
tem could spill over to US institu-
tions. The S&P financial sector was
down 2.6 per cent while Bank of
America slumped 4.7 per cent and
JPMorgan Chase lost 3.4 per cent.
Sentiment over Europe had been
more positive, helping the S&P to a
second week of gains last week, but
volatility remains high as markets
continue to be dictated by headlines.
The Dow Jones industrial average
was down 162.87 points, or 1.34 per
cent, at 12,021.39. The Standard &
Poors 500 Index was down 18.72
points, or 1.49 per cent, at 1,236.47.
The Nasdaq Composite Index was
down 34.59 points, or 1.31 per cent, at
2,612.26.
B
ritains FTSE 100 fell in light vol-
ume yesterday, with investors
selling riskier banking and min-
ing assets as analysts concluded
that the lack of detail in a European
deal on fiscal union left question
marks over its long-term plausibility.
Londons blue-chips fell 101.35
points, or 1.8 per cent, to 5,427.86,
erasing Fridays 0.8 per cent rise, as
analysts said there was far more work
for European leaders to do before
Europes debt crisis could be solved.
Analysts at RBS, Brewin Dolphin
and Credit Suisse said the lack of
detail left doubts over Eurozone fiscal
union, which in turn could prevent
more meaningful support from the
European Central Bank.
There are no details on any of the
key issues (of the European agree-
ment) just lots of promises. And his-
torically, follow-through has
disappointed, Credit Suisse said.
Standard and Poors credit rating
agency also warned that the
European Union will need more sum-
mits to resolve its debt turmoil and
time is running out.
Banks were the main drag on a
FTSE 100 index that has remained
largely between 5,400 and 5,600 since
the start of December.
Royal Bank of Scotland shed 6.5 per
cent as the Financial Services
Authority (FSA) reported into the near-
collapse of the bank in 2008. Seymour
Pierce analyst Bruce Packard, who has
a reduce rating on RBS, said he did
not think the report altered the
investment case for the bank.
UK mining shares fell, with worries
about Europe more than offsetting
strong copper import data from
China. Kazakh miner ENRC dropped
7.4 per cent after a weekend news
report citing talks with the Serious
Fraud Office on corruption allega-
tions revived scepticism about its cor-
porate governance.
Inmarsat shed 5.3 per cent on con-
cerns over the wireless service run by
partner LightSquared.
Across the Atlantic, Wall Street
indices were lower as the US joined
the post-summit sell-off, and as Intel
said fourth-quarter results would miss
its forecast.
The demand for stocks offering
shelter from the economic storm was
the main reason the UKs benchmark
index did not register a steeper fall.
Undeniably the post-bubble land-
scape is a challenging one ... An
extended period of depressed eco-
nomic activity and a low average
returns environment appear
inevitable, said Jeff Munroe, chief
investment officer at Newton, which
has about 43.4bn of assets under
management.
We believe growth opportunities
lie in selective emerging economies
especially those with positive demo-
graphics and low debt-to-GDP ratios,
as well as in the technology, energy
and healthcare sectors.
Defensive stocks rose: drugmaker
GlaxoSmithKline climbed 0.3 per cent
and drinks firm Diageo one per cent.
Imperial Tobacco gained 0.5 per
cent, also boosted by the quashing of a
112m Office of Fair Trading penalty
imposed for allegedly restricting com-
petition.
SABMiller outperformed the FTSE
100 as a defensively-perceived brewer,
and was boosted by an upgrade to
neutral from underperform by
Exane BNP Paribas.
With stock valuations beaten down
on the back of the global financial cri-
sis, UK-listed companies are proving
attractive. Mothercare rose 4.6 per
cent, after the Sunday Telegraph said
buyout firm Cinven was assessing an
150m-plus takeoverof the retailer.
FTSE tumbles as doubts over
Eurozone deal take their toll
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 Associated British Foods
1,140
1,120
1,100
1,080
1,060
Oct Nov Dec
p
1,085.00
12 Dec
ASSOCIATED BRITISH FOODS
Panmure Gordon rates the owner of Silver Spoon and Twinings as a buy
and said it remained confident of its 14 per cent earnings per growth fore-
cast for the year. ABF last week confirmed that trading for the first two
months of the year is in line with expectations and that it will benefit from
good sugar pricing this year. The broker said with the shares having drift-
ed lower, they remain attractive.
ANALYSIS l Ashmore Group
400
380
360
340
320
Oct Nov Dec
p
327.50
12 Dec
ASHMORE GROUP
Goldman Sachs said it expects a solid 2012 performance from the financial
services group Ashmore and reiterated its neutral rating, with a target price
of 380p. Consensus earnings forecasts for Ashmore have declined 14 per
cent from their peak in October, which the US bank said was due in part to a
dampening in near-term performance fee expectations following volatility in
financial markets. It said expectations are now at more realistic levels.
ANALYSIS l Aegis Group
140
135
130
125
120
Oct Nov Dec
p
137.40
12 Dec
AEGIS
Nomura has reiterated its positive view on Aegis and rates the marketing
services company as a buy with a target price of 175p. The bank said the
firm continues to be the best-performing agency in 2011 both in terms of
fundamentals and share price performance and predicts organic growth
of 7.6 per cent for the full year 2011, well ahead of its peers. Nomura also
highlighted Aegis clear acquisition strategy.
p
30Sep 12Sep 20Oct 9Nov 29Nov
5,800
5,000
5,200
5,400
5,600
ANALYSIS l FTSE
5,427.86
12 Dec
Cushman & Wakefield
The global property consultant has expanded its
EMEA sustainability team by appointing Justy
Mathew as sustainability analyst, based in
London. He joins from Pensions & Investment
Research Consultants, where he worked on cor-
porate social responsibility. Reporting to Andries
van der Walt, head of sustainability for EMEA,
Mathew will deliver sustainability consultancy
for corporate occupiers and investor clients
alongside Alison Matthews, who joined as sus-
tainability advisor earlier this year.
News
25 CITYA.M. 13 DECEMBER 2011
M
UCH has been written in recent weeks
about the question of safeguarding
the high standards of Londons listed
equity market in the face of a spate of
listings of international commodity stocks.
Many of these articles assume it is the role of
the UK Listing Authority (UKLA) to insist on full
compliance with the Corporate Governance
Code, or to use the free float requirement for all
listings (which sets the proportion of shares
freely available for trading) as a basis for de-list-
ing or refusing to list certain companies or
even, in some cases, that the UKLA should regu-
late inclusion in relevant stock indices.
This misunderstands the UKLAs role. It also
overlooks the benefits the UK derives from pro-
viding markets that are attractive for overseas
companies and through which investors can
choose (or not) to invest in those companies.
The UKLAs role is not to require compliance
with the Corporate Governance Code. The list-
ing rules require companies to disclose
whether they comply with the Codes princi-
ples, and if not, to explain why not. That com-
ply or explain approach has consistently had
strong support from both companies and
investors. The Codes contents are overseen by
the Financial Reporting Council, not the UKLA.
It is also a misperception that the UKLA can
use its free-float requirements as an arbiter of
whether a stock is suitable for admission to list-
ing. These requirements derive directly from
European law, and focus on liquidity alone.
There has been no suggestion to date that the
companies in question have been admitted to
listing without sufficient liquidity to ensure
the formation of a proper secondary market.
The UKLAs powers do include the possibility
of taking action for inaccurate market disclo-
sure that breaches the listing or disclosure
rules. And it is also worth noting that the relat-
ed party regime which applies to the compa-
nies because of their premium listings here has
had an important role, enforced by the UKLA, in
ensuring minority shareholders are protected in
respect of transactions where controlling share-
holders have conflicting interests (as the recent
ENRC decision in relation to Shubarkol shows).
These related party requirements sit alongside
a broader set of investor protections within the
UKLAs premium listing regime that include the
class test regime, where large transactions are
automatically put to shareholder vote, and the
sponsor regime. This latter allows the UKLA to
operate a risk-based approach to regulation
deferring to the sponsor duties of diligence, doc-
ument preparation and director briefing which
it would be too onerous for the regulator to per-
form. This is not to suggest that the UKLA is pas-
sive in its role; merely that its regulatory
responsibility is also borne by sponsors, who are
themselves subject to high degrees of UKLA
supervision.
The UKLAs document vetting role is in itself
an important piece of investor protection, but it
has as a guiding principle the idea that clear and
prominent disclosure provides sufficient
investor protection against most risks. In many
cases the UKLA seeks to put the investor in an
informed position of choice, by ensuring key
risks are drawn out and clarified for an investor,
rather than deciding for the market as a whole
which companies or investments are, or are not,
suitable for investment.
The principle of investor choice, as promoted
by the UKLA, can be called into question when
investors are perceived as being forced into buy-
ing stocks by index-tracking mandates whose
parameters may be drawn too tightly, for exam-
ple, tracking the components of the FTSE 100.
While this is a charge that is frequently laid at
the door of the UKLA, the UKLA has no input
into index requirements and cannot have regard
to index rules in considering approval of listings.
This narrow question is being addressed in
part by FTSE through its consultation on
whether to modify its own selection criteria to
exclude companies in the FTSE 100 which, for
example, fail to meet a specified free float
threshold.
However, the recent discussions have opened
up a far larger debate than is likely to be resolved
by changes to FTSEs free float requirements and
involves many of the long-standing foundations
of the UKs vibrant equity market. This broader
debate draws in questions of whether the com-
ply or explain basis of the FRCs Corporate
Governance Code continues to meet the needs of
investors, and whether the current investor pro-
tections in the UKLAs listing regime should be
further strengthened. This debate will also play
out against the backdrop of the passage of the
Financial Services Bill, where broader questions
still about the balance between international
competitiveness and consumer protection con-
tinue to be discussed.
Given the importance of what is at stake, this
broader debate should be welcomed by all mar-
ket participants, but it is essential that this
debate takes place on a more fully informed
basis than has been the case to date.
Andrew Tusa is the chairman of the Listings
Authority Advisory Committee (LAAC).
26
The Forum
CITYA.M. 13 DECEMBER 2011
In many cases, the UKLA
seeks to put the investor in a
position of informed choice
Critics of listing rules in the
UK should bear in mind how
the system actually works
cityam.com/forum
ANDREW TUSA
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
27
Utopian dreams
of political union
leave no place for
stability in the EU
Another summit,
another letdown
by Europes elite
A
USTAN Goolsbee, former chairman of
President Obamas council of econom-
ic advisers, is hardly a virulent
eurosceptic. However, his assessment
of the prospects of the common currency is
very stark: in his view, as long as European
leaders remain wedded to a utopian vision of
political union in Europe, they will have to
keep fighting off fiscal and financial panics.
But that cant go on forever.
Last weeks summit of European leaders
was supposed to deliver a definitive solution
to the Eurozones financial woes. It didnt, and
it would be preposterous to blame David
Cameron for that outcome. The crucial ele-
ment of last weeks fiasco is the commitment
of European political leaders to an unwork-
able model for the Eurozone.
The main conclusion of the summit is
strengthened fiscal governance within the
Eurozone or rather an illusion thereof. In
theory, no future structural deficits will be
allowed, and violations of the 3 per cent
deficit rule would trigger automatic sanc-
tions. Furthermore, the European
Commission is to be empowered to interfere
with the budgeting process in individual
member states whenever fiscal performance
is unsatisfactory.
Of course, these commitments are not cred-
ible and are going to fail, for the same reason
as most New Years resolutions do. Just as
youre not going to lose weight by merely say-
ing so, Europe is not going to solve its fiscal
and structural problems by fiat. After all, the
Eurozone already has a set of fiscal rules,
which have been ignored by most member
states for a decade.
But there is another, deeper flaw, to the
agreement reached on Thursday night. The
periphery of the Eurozone has an immediate
solvency problem, which is not going to be
solved by better fiscal rules. And the
Eurozones approach to this solvency problem
is just as unconvincing as before. Neither the
EFSF nor the ESM are serious mechanisms for
solving the problem: their whole point is to
mask the fact that there is no one willing to
pay for the debts of the Eurozones periphery.
What if last weeks summit had agreed to
the creation of a closer fiscal union? A solu-
tion to the problem in the form of fiscal trans-
fers would require that the Germans commit
to pay not only for the existing Greek debt but
also that it will always provide the ailing
periphery with funds in the future. In other
words, the fiscal union would mean trans-
forming the peripheral countries into the
equivalent of those parts of the UK perma-
nently dependent on fiscal transfers from
London and the southeast.
Europe will not become a well-functioning
union. By now, everyone should see very clear-
ly that it lacks the elements that would make
it work as a monetary union. It also lacks the
elements that would make it work as a politi-
cal union common electorate, shared narra-
tive and moral like-mindedness. And unless
European political elites renounce their ideo-
logical commitment to this utopia, we are all
going to get badly hurt.
Dalibor Rohac is the deputy director of economic
studies at the Legatum Institute. Follow him on
Twitter at @daliborrohac.
Deutsch courage
[Re: David Cameron was right to
say No, yesterday] Believe me:
most people here in Germany
are very concerned about that
elite project called . Once more
in history, the UK is doing the
right thing. It seems that
German leaders havent learned
anything from the past. See the
readers comments in German
newspapers: theres deep
respect for Camerons decision. I
wish we had one like him.
Rolf Heine
Vetting bulldogs
[Re: David Cameron was right to
say No, yesterday] Ive been real-
ly surprised how people (both Jo
Public and political commenta-
tors) have so quickly jumped to
binary conclusions about whether
the veto was good or bad. Since
Friday, I havent heard anyone
quantify and set out the pro and
con of Camerons decision in
order for the nation to have a
rational and less British bulldog
approach to the euro crisis.
Ajit Madan
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
business 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
DALIBOR ROHAC
BY ANTHONY J. EVANS
CITYA.M. 13 DECEMBER 2011
The Forum
W
HEN looking at
i nves t ment
data during the
recent reces-
sion two key things
emerge. The first is that
UK investment (or Gross
Fixed Capital Formation)
has not fully recovered
(see top chart, below). It did bounce back, but once
more the growth rate is negative.
However, to understand what is going on, its impor-
tant to look beyond the headline figure, and study the
composition of investment.
The second key lesson from the output data is that
the recession saw a massive shift from private invest-
ment spending to government spending (see bottom
chart, below).
GFCF is comprised of the sum of business invest-
ment, general government, public corporations, and pri-
vate sector dwellings. The chart shows how private
investment (business investment and private sector
dwellings) was mitigated by increases in general gov-
ernment investment.
The Keynesian view is that governments can boost
aggregate demand with government spending when
investment is too low. But there are well known prob-
lems with this. Put simply, 1m of government spend-
ing is not the same thing as 1m of private spending.
Chinese ghost cities have the potential to increase GDP,
but at the expense of genuine economic development.
When private sector investment declines, then the
reasons need to be identified and a solution found. The
key policy question needs to be why arent businesses
investing? Attempting to offset it with government
spending is just an accounting deception. And too
much government intervention can be the underlying
Government spending
wont fix the economy
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
ANALYSIS l Private v Goverment investment
07
Q1
07
Q3
08
Q1
08
Q1
09
Q3
09
Q3
10
Q3
10
Q3
11
Q1
39.20
58.80
19.60
0.00
-19.60
Private investment
General government
ANALYSIS l Gross Fixed Capital Formation
97
Q1
98
Q2
99
Q3
00
Q4
02
Q1
03
Q2
04
Q3
05
Q4
07
Q1
08
Q2
09
Q3
10
Q4
10.00
20.00
0.00
-10.00
-20.00
cause, not the cure through high tax rates, burden-
some regulations and policy uncertainty.
Successive interventions destabilise the climate of
investment, exposing the folly that government can
simply step in and replace it. The only way forward
is to focus on reducing barriers to business. It is pro-
duction that gives us the power to consume, and it is
private sector production that needs to recover.
Anthony J. Evans is Associate Professor of
Economics at Londons ESCP Europe Business
School, and Fulbright Scholar-in-Residence at
San Jose State University. anthonyjevans.com
Marius Hampden is the 2011 SG Market Master
A
FTER four weeks of fierce com-
petition which saw over
290m in virtual money trad-
ed across the range of Societe
Generale Covered Warrants, Turbos
and Super10s, the SG Market Master
Virtual Portfolio Challenge is now
over, and we are pleased to announce
Marius Hampden as our overall cham-
pion.
In just four weeks, Marius gen-
erated a highly impressive return
of over 260 per cent. And he did it
with just one trade. Commenting
on what drove his winning strate-
gy, Marius said: I came into this
challenge having learnt three
essential lessons in Societe
Generales previous ETF Master chal-
lenge: buy only what you know,
research and understand all the
available data and stand by your con-
viction.
Marius started a little later than
many. He explains that on joining the
challenge he was immediately
struck by the huge choice of products,
and initially felt out of my depth. At
this stage, the leaders had already
amassed gains of 75 per cent, but this
Covered Warrants, Turbos and Super10s are leveraged products. The underlying assets may be volatile and both gains and losses could be proportionately greater than those incurred by investing
directly in the underlying asset. Covered Warrants, Turbos and Super10s are issued by Societe Generale Acceptance, a member of the Societe Generale group of companies. Any failure of Societe
Generale Acceptance to perform obligations when due may result in the loss of all or part of an investment. Covered Warrants, Turbos and Super10s are not suitable for everyone. Investors capital
is at risk. Investors should not deal in these products unless they understand their nature and the extent of their exposure to risk.
Marius wins
membership to
DreamCarHire.com
Picture: REX
ADVERTISEMENT FEATURE
How some super
traders turboed
into the fast lane
did not shake Mariuss resolve to par-
ticipate in the challenge. However,
first he wanted to familiarise himself
with the products: I found the edu-
cational videos and slides very help-
ful, and the entire experience an
effective way to learn.
The inspiration to trade came on
24 November when Marius read that
the FTSE had fallen for 9 consecutive
days the most since 2003. This was
the news he had been waiting for.
Marius knew the FTSE well and sud-
denly the challenge was not so daunt-
ing. Now it was time for principle
two: do the research. Marius identi-
fied the SY03 to SY08 series of out-the-
money FTSE Call Warrants with
expiry dates in mid-December. This is
quite an aggressive strategy as these
warrants were short-dated and need-
ed the FTSE 100 to rise before they
would be in the money. To compen-
sate for the additional risk, these
products offer strong gearing and the
chance to really boost returns. Marius
eventually selected SY04, a Call
Warrant with a 5,500 strike price
which expired on 16 December, as he
felt the potential for the FTSE reach-
ing 5,500 was a realistic target.
Having checked all the available
data like spreads and gearing he
bought in with 100 per cent of avail-
able funds. Marius does stress he
wouldnt have contemplated invest-
ing everything on a single instru-
ment for himself, never mind a client
in a real trading situation. But for the
purposes of the competition it made
sense to go for it, and he bought
1,851,629 units for 5.4p each.
Despite dropping initially, Mariuss
strategy paid off and lesson number
three, stand by your conviction,
proved true as SY04 continued to rise.
With just days to go and a clear lead,
Marius took the brave move to consol-
idate his position and he sold back
the full position at 19.46p each, mak-
ing a profit on his portfolio of
260,315.04 after the virtual trading
fees had been deducted. When asked
how Marius found the challenge, he
was very complimentary, saying:
While these products would
undoubtedly form part of a wider
investment strategy, I do see them,
when properly researched, as sitting
comfortably as a cost effective means
of both leveraging returns and miti-
gating loss. I am delighted with the
prize and would like to extend my sin-
cere thanks to everyone at SG for the
initiative.
THE RUNNERS UP
Mariuss closest rival, Rhys Davies,
also restricted his trading to the range
of Covered Warrants, focusing main-
ly on the FTSE 100, but also including
Barclays and Antofagasta. Rhys exe-
cuted a short-term view, choosing
short-dated (December 2011 expiry)
and only just out-the-money Covered
Warrants to take full advantage of the
recent market volatility. Rhys selected
products with gearing of up to 30
times, which meant that profits or
losses on his chosen underlying assets
were magnified by 30 times. Rhys
explains how he adapted his strategy
to limit the impact of time decay
where the warrants price falls
because it is nearing expiry: I tried
not to leave very short-dated positions
in place for too long as the loss of
time value could be significant. With
longer term views, two to four weeks,
I chose longer dated instruments
say, six months where I was able to
stay invested for a longer period of
time with less loss of time value. The
strategy was successful as Rhys man-
aged a fantastic profit of 191,558.25
in the four week challenge.
Third place went to Tolga Halil
from Icap who generated a profit of
182,821.61 despite being completely
new to the products. Tolga explained
that he played two main views during
the challenge: US strength and the
European crisis. This he expertly
implemented with a series of Call
Warrants on the Dow Jones and FTSE
100 indices, and Put Warrants on
euro-dollar and sterling-dollar
exchange rates. Although Tolga
admits that he had a bit to learn
about the products pricing, his
strong performance in the challenge
has inspired him to look at Covered
Warrants in his real portfolio.
Shaun Pacey finished fourth after a
storming run on the final day, plac-
ing 40 trades and making a stagger-
ing 72,462.07 profit in a single day
finishing with an impressive return
of 168,302.49. Shaun had led the
rankings for most of the challenge,
but had it not been for his impressive
late surge, he would have left empty
handed. The majority of his trades
were on the FTSE 100 across a combi-
nation of Covered Warrants and
Turbos, but he included some tactical
trading on the Nikkei, CAC 40 and
Barclays when the opportunities
arose. Shaun said that his strategy
was all about short-term momen-
tum, combined with strict discipline
on stops. My big regret was that I was
in cash, and at lunch, when the vari-
ous central banks announced their
co-ordinated liquidity moves that
cost me dearly.
Kaustubh Misra who finished in
fifth place with a return of
164,527.63 was our most prolific
trader in the top five, posting 240
trades during the four weeks.
Interestingly, Kaustubh stuck to
Turbos entirely; trading LONG and
SHORT turbos to take maximum
advantage of the rises and falls in the
FTSE 100. Kaustubh explained his
preference for Turbos: For me,
Turbos are the best products as there
is no time decay and if the strike is far
enough, one can hold winning posi-
tions for longer periods. Turbos cer-
tainly are suitable for traders like
Kaustubh who are looking to execute
a short-term strategy, whereas
Covered Warrants tend to be more
pertinent for medium to long-term
strategies.
Like Marius, Kaustubh was very dis-
ciplined: There is nothing more
important than cutting losses in trad-
ing, particularly trading in leveraged
products. I used some long-term and
short-term support and resistance lev-
els of the FTSE to enter into any
trades. Then, if the trade did not go
into a positive position immediately
and stay that way, I would choose my
stop loss level, and cut the trade at
that point, no matter how much I
lost. However, if I had a positive result,
I would take profit once the trend
stops. This approach is indeed used
by many successful investors in listed
products.
GENERAL TRENDS
Over 7,000 trades were placed
between when Market Master opened
on 7 November 2011, and when it
closed on 5 December. Over 500 sepa-
rate instruments were traded in total
but 34 per cent of trades were
polarised around four particular
Turbos.
There is no surprise that 64 per
cent of trades were on the FTSE 100,
and that gold, the Dax and the Dow
Jones Index were the next most popu-
lar underlying assets given the flight
to quality that weve witnessed for the
last few months.
We would like to thank everyone
that took part. The response was over-
whelming, and we sincerely hope
that everyone enjoyed the challenge.
But more importantly, that you
learnt something useful about
Covered Warrants, Turbos and
Super10s.
If youve enjoyed the challenge and
find yourself wanting to know more,
you can continue to use the SG
Market Master website as your own
demo trading site. The educational
guides and downloads and videos will
remain on the website so that you can
continue to learn. Plus, you can find
more educational materials, free sem-
inars, a weekly email and our quarter-
ly magazine online at
www. sgl i stedproducts. co. uk.
Everything is completely free and you
may find it a useful way to research
and learn about the huge variety of
products on offer.
TOP 10 MOST POPULAR PRODUCTS
EPIC Product type Underlying Strike Value traded
T380 SHORT Turbo FTSE 100 5,800 41,929,531.27
T381 LONG Turbo FTSE 100 5,000 32,163,614.24
T382 LONG Turbo FTSE 100 5,200 18,042,051.93
SY05 Call Covered Warrant FTSE 100 5,500 9,430,885.41
T365 SHORT Turbo FTSE 100 5,900 7,925,987.16
SX79 Put Covered Warrant FTSE 100 5,500 7,726,071.24
SY16 Put Covered Warrant FTSE 100 5,700 6,339,616.47
SR29 Call Covered Warrant DJIA 50 12,000 5,880,808.02
SY03 Call Covered Warrant FTSE 100 5,300 5,683,428.26
SY14 Put Covered Warrant FTSE 100 5,400 4,590,798.94
Source www.sgmarketmaster.co.uk. This is not a recommendation. This is for illustrative purposes only
MOST POPULAR UNDERLYINGS
Underlying traded value %
FTSE 100 INDEX 188,443,118.49 64.83
GOLD 7,938,535.81 2.73
DAX INDEX 7,878,726.46 2.71
DJIA 50 5,880,808.02 2.02
FOREX EUR USD 5,456,965.93 1.88
EURO STOXX 50 Net Return 5,342,044.95 1.84
DOW JONES INDEX 5,330,229.33 1.83
BARCLAYS 4,784,627.16 1.65
S&P 500 INDEX 3,690,303.75 1.27
XSTRATA PLC 3,578,148.28 1.23
Source www.sgmarketmaster.co.uk. This is not a recommendation. This is for illustrative purposes only
T
HE use of moving day averages is a
very simple idea. By taking an aver-
age of the price over a certain period
of time, you can concentrate on
long-term trends.
The most common time frames used by
traders are the 200-day, 100-day, 50-day
and 10-day moving averages. The shorter
the time span, the more sensitive it is to
price changes, says OSullivan. If youre
looking for short-term trades, look to use
some of the shorter term moving aver-
ages. Conversely, the longer the time
span, the less sensitive that it is to sudden
changes and moves.
So how should they be used? As with all
indicators, moving day averages are not a
cast-iron way to predict the direction that
will be taken by an asset. However, when
used in conjunction with other indicators,
it can help to increase the probability of
your trade being successful.
There were two great trades using
moving averages that we flagged up on
our twitter feed in crude and gold in the
last couple of days, says OSullivan. For
crude, when it tried to rally back to a
trend line it had fallen below last
Thursday, it was now facing the resistance
of the 50-day and 100-day moving aver-
ages, which were both around the $101
level. Selling here on Thursday with a $1
stop loss would have seen you make over
300 points profit by Monday afternoon,
says OSullivan.
The second move was seen in gold as it
broke below $1,680 (see chart, right). At
10am, we picked out the long-term 150-
day exponential moving average at 1,660
as a likely target it was hit by 3pm, says
OSullivan. This could have been a good
level to close any short positions entered
in the morning or even to enter a long
trade with a relatively tight stop loss.
Craig Drake asks Ian
OSullivan of Spread
Co for his guide to
moving day averages
Moving day averages help to give you an accurate measure of the direction of an asset Picture: REX
Wealth Management| Contracts for Difference
29 CITYA.M. 13 DECEMBER 2011
Filtering out the noise
to help measure trends
W
ERE rapidly approaching the year-end and
analysts are busy finessing and publishing their
2012 outlooks. With just a couple of weeks to
go before we can consign 2011 to the dustbin
of history, it is probably useful to have a brief look back at
how some of the major financial markets behaved over
the past twelve months.
All-in-all, it hasnt been a good year for buy-and-hold
equity investors. The S&P 500 is now pretty much
unchanged. Yet it has held up better than many other
global indices. The FTSE 100 is down around 7 per cent;
the German Dax has fallen 14 per cent while the
Japanese Nikkei and Chinas Shanghai Composite are
down 15 per cent and 18 per cent respectively.
However, it is interesting to contrast the S&Ps perform-
ance with that of three other major US indices: both the
Dow Jones Industrial Average and the Nasdaq 100 are
around 4 per cent higher since the start of the year. Yet
the broader-based Russell 2,000, where the average
market capitalisation of its constituents is relatively
small at around $1.25bn, has fallen over 6 per cent.
It may have been a better year for active traders
given some of the extraordinary market swings weve
experienced, especially since the end of July. The diffi-
culty has been calling the turns, as so many of the
moves have been driven once again by political head-
lines and the actions of central bankers. This has made
life much more difficult for traders who rely on technical
analysis, as major policy decisions or a lack of them
have tended to trump charts and studies.
Will 2012 prove to be any different? Traders are
keeping a close eye on 200-day moving averages (DMA)
for a number of indices. Both the S&P and FTSE contin-
ue to knock up against their 200-DMAs at 1,260 at
5,630 respectively, although the Dow and the Nasdaq
have both cleared their own. Meanwhile, European poli-
cymakers have made their move towards fiscal integra-
tion. Stock market bulls are hoping that this will
persuade the ECB to step up to the plate as lender of
last resort. But time is running out, and the danger is
that the ratings agencies decide that they can no longer
hold off from downgrading European banks and their
sovereigns.
WERE BACK TO
SQUARE ONE
FOR S&P 100
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
Experience Binary Brilliance Visit gftuk.com/binaries or freephone 0808 208 5192
2011 Global Futures and Forex, Ltd. All rights reserved. CD03UK.181.100711
facebook.com/gftmarketsuk twitter.com/gftuk
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$/oz
150-day MA
05 03 04 03 02 02 04 04 04 01 31 31 30 29 Jan2012 03 Jan2011
1,900.00
1,300.00
1,450.00
1,600.00
1,750.00
ANALYSIS l Spot gold
100-day MA
30
Wealth Management
CITYA.M. 13 DECEMBER 2011
LON GD ONCE FIX AM...........1680.00 -32.00
SILVER LDN FIX AM ..................31.25 -0.96
MAPLE LEAF 1 OZ ....................33.60 1.19
LON PLATINUM AM................1492.00 1.00
LON PALLADIUM AM...............668.00 3.00
ALUMINIUM CASH .................2066.00 7.00
COPPER CASH ......................7800.00 0.00
LEAD CASH...........................2092.00 -26.00
NICKEL CASH......................18320.00 195.00
TIN CASH.............................20245.00 -155.00
ZINC CASH ............................1985.00 -20.00
BRENT SPOT INDEX................108.36 -0.79
SOYA .....................................1107.00 -25.50
COCOA..................................1936.00 -32.00
COFFEE...................................224.65 -1.05
KRUG.....................................1726.10 -48.80
WHEAT ....................................141.75 -0.50
AIR LIQUIDE........................................91.00 -1.25 100.65 80.90
ALLIANZ..............................................74.24 -5.15 108.85 56.16
ANHEUS-BUSCH INBEV ....................44.09 -0.12 45.61 33.85
ARCELORMITTAL...............................13.19 -0.95 28.55 10.47
AXA......................................................10.45 -0.72 16.16 7.88
BANCO SANTANDER...........................5.72 -0.25 9.20 5.05
BASF SE..............................................51.61 -2.29 70.22 42.19
BAYER.................................................45.82 -1.56 59.44 35.36
BBVA......................................................6.26 -0.26 9.17 4.94
BMW ....................................................52.52 -1.28 73.85 43.49
BNP PARIBAS.....................................30.87 -1.64 59.93 22.72
CARREFOUR ......................................17.83 -0.69 31.98 14.66
CRH PLC .............................................13.35 -0.15 17.40 10.28
DAIMLER.............................................33.06 -1.10 59.09 29.02
DANONE..............................................47.70 -0.16 53.16 41.92
DEU.BOERSE OFFRE ........................41.47 -0.33 55.75 35.46
DEUTSCHE BANK..............................27.97 -1.62 48.70 20.79
DEUTSCHE TELEKOM.........................9.02 -0.27 11.38 7.88
E.ON.....................................................17.00 -0.81 25.54 12.50
ENEL......................................................3.07 -0.09 4.86 2.78
ENI .......................................................15.69 -0.41 18.66 11.83
FRANCE TELECOM............................12.27 -0.27 16.65 11.12
GDF SUEZ ...........................................20.71 -0.64 30.05 17.65
GENERALI ASS...................................11.95 -0.49 17.05 10.34
IBERDROLA..........................................4.87 -0.17 6.50 4.29
INDITEX ...............................................62.54 -0.86 69.40 50.92
ING GROEP CVA...................................5.36 -0.47 9.50 4.21
INTESA SANPAOLO.............................1.20 -0.07 2.47 0.85
KON.PHILIPS ELECTR.......................15.13 -0.58 25.45 12.01
L'OREAL..............................................78.92 -1.48 91.24 68.83
LVMH..................................................111.35 -3.10 132.65 94.16
MUNICH RE.........................................91.04 -3.96 126.00 77.80
NOKIA....................................................3.73 -0.13 8.49 3.33
REPSOL YPF.......................................22.39 -0.74 24.90 17.31
RWE.....................................................26.75 -1.19 55.70 21.15
SAINT-GOBAIN...................................29.79 -0.99 47.64 26.07
SANOFI ................................................52.58 -0.76 56.82 42.85
SAP......................................................43.36 -0.45 46.15 32.88
SCHNEIDER ELECTRIC.....................40.05 -1.74 61.83 35.00
SIEMENS .............................................72.73 -2.02 99.39 62.13
SOCIETE GENERALE.........................18.60 -0.96 52.70 14.32
TELECOM ITALIA..................................0.82 -0.03 1.16 0.70
TELEFONICA ......................................13.50 -0.40 18.75 12.50
TOTAL..................................................38.05 -0.81 44.55 29.40
UNIBAIL-RODAMCO SE...................131.80 -5.30 162.95 123.30
UNICREDIT............................................0.75 -0.05 2.03 0.64
UNILEVER CVA...................................25.51 0.01 25.72 20.90
VINCI ....................................................32.28 -0.24 45.48 28.46
VIVENDI ...............................................16.61 -0.30 22.07 14.10
VOLKSWAGEN VORZ ......................120.00 -4.65 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5427.86 -101.35 -1.83
FTSE 250 INDEX . . . . . . . . 9901.15 -229.42 -2.26
FTSE UK ALL SHARE . . . . 2786.80 -53.03 -1.87
FTSE AIMALL SH . . . . . . . . 692.52 -7.85 -1.12
DOWJONES INDUS 30 . . 12021.39 -162.87 -1.34
S&P 500 . . . . . . . . . . . . . . . 1236.47 -18.72 -1.49
NASDAQ COMPOSITE . . . 2612.26 -34.59 -1.31
FTSEUROFIRST 300 . . . . . . 967.49 -18.32 -1.86
NIKKEI 225 . . . . . . . . . . . . . 8653.82 117.36 1.37
DAX 30 PERFORMANCE. . 5785.43 -201.28 -3.36
CAC 40 . . . . . . . . . . . . . . . . 3089.59 -82.76 -2.61
SHANGHAI SE INDEX . . . . 2291.55 -23.73 -1.03
HANG SENG. . . . . . . . . . . 18575.66 -10.57 -0.06
S&P/ASX 20 INDEX . . . . . . 2556.60 0.00 0.00
ASX ALL ORDINARIES . . . 4311.40 47.30 1.11
BOVESPA SAO PAOLO. . 57346.86 -889.60 -1.53
ISEQ OVERALL INDEX . . . 2711.14 -30.15 -1.10
STI . . . . . . . . . . . . . . . . . . . . 2701.72 7.12 0.26
IGBM. . . . . . . . . . . . . . . . . . . 840.34 -26.91 -3.10
SWISS MARKET INDEX. . . 5747.09 -46.48 -0.80
Price Chg %chg
3M........................................................80.59 -1.61 98.19 68.63
ABBOTT LABS ...................................54.27 -0.30 55.61 45.07
ALCOA ..................................................9.35 -0.29 18.47 8.45
ALTRIA GROUP..................................28.87 0.09 29.05 23.20
AMAZON.COM..................................189.52 -3.51 246.71 160.59
AMERICAN EXPRESS........................47.89 -0.91 53.80 41.25
AMGEN INC.........................................57.16 -1.43 61.53 47.66
APPLE...............................................391.84 -1.78 426.70 310.50
AT&T....................................................29.01 -0.02 31.94 27.20
BANK OF AMERICA.............................5.45 -0.27 15.31 5.03
BERKSHIRE HATAW B.......................76.27 -1.34 87.65 65.35
BOEING CO.........................................70.90 -1.03 80.65 56.01
BRISTOL MYERS SQUI ......................33.18 -0.36 33.72 20.05
CATERPILLAR....................................93.24 -2.73 116.55 67.54
CHEVRON.........................................103.07 -1.18 110.01 85.84
CISCO SYSTEMS................................18.53 -0.35 22.34 13.30
CITIGROUP.........................................27.22 -1.55 51.50 21.40
COCA-COLA.......................................66.89 -0.68 71.77 61.29
COLGATE PALMOLIVE......................90.21 -0.25 94.89 74.86
CONOCOPHILLIPS.............................70.48 -1.47 81.80 58.65
CVS/CAREMARK................................38.15 -0.22 39.50 31.30
DU PONT(EI) DE NMR........................43.91 -1.13 57.00 37.10
EXXON MOBIL....................................80.05 -1.29 88.23 63.47
GENERAL ELECTRIC.........................16.46 -0.38 21.65 14.02
GOOGLE A........................................625.39 -2.03 642.96 473.02
HEWLETT PACKARD.........................27.34 -0.56 49.39 19.92
HOME DEPOT.....................................40.05 -0.18 40.93 28.13
IBM.....................................................192.18 -2.38 194.90 143.52
INTEL CORP .......................................24.00 -1.01 26.78 19.16
J.P.MORGAN CHASE.........................32.04 -1.14 48.36 27.85
JOHNSON & JOHNSON.....................63.51 -1.02 68.05 57.50
KRAFT FOODS A................................36.42 -0.28 36.90 24.30
MC DONALD'S CORP ........................98.48 0.45 98.53 72.14
MERCK AND CO. NEW......................35.41 -0.27 37.65 29.47
MICROSOFT........................................25.51 -0.19 29.46 23.65
OCCID. PETROLEUM.........................91.78 -2.62 117.89 66.36
ORACLE CORP...................................31.32 -0.37 36.50 24.72
PEPSICO.............................................64.66 -0.53 71.89 58.50
PFIZER ................................................20.39 -0.17 21.45 16.59
PHILIP MORRIS INTL .........................75.15 -0.43 77.03 55.85
PROCTER AND GAMBLE ..................64.31 -0.66 67.72 56.57
QUALCOMM INC ................................54.78 -0.40 59.84 45.98
SCHLUMBERGER ..............................71.92 -2.23 95.64 54.79
TRAVELERS CIES..............................55.83 -0.19 64.17 45.97
UNITED TECHNOLOGIE ....................74.48 -1.83 91.83 66.87
UNITEDHEALTH GROUP...................48.20 -0.71 53.50 34.94
VERIZON COMMS ..............................38.35 -0.08 38.95 32.28
WAL-MART STORES..........................58.09 -0.23 59.40 48.31
WALT DISNEY CO ..............................36.65 0.09 44.34 28.19
WELLS FARGO & CO.........................26.29 -0.62 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 ..................0.593 -0.01
LIBOR Euro - 12 months ................1.973 0.00
LIBOR USD - overnight...................0.150 0.01
LIBOR USD - 12 months.................1.087 0.01
HaIifax mortgage rate .....................3.990 -0.02
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 .........................3.050 -0.06
European repo rate.........................0.718 0.18
Euro Euribor ....................................0.800 -0.03
The vix index ...................................27.47 0.66
The baItic dry index ........................1.922 0.04
Markit iBoxx...................................239.80 1.28
Markit iTraxx..................................174.27 -1.99
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
BAE Systems . . . . . .275.3 -4.6 361.1 248.1
Chemring Group . . . .377.7 -14.1 736.5 368.8
Cobham . . . . . . . . . . .173.2 -2.5 236.5 165.9
Meggitt . . . . . . . . . . . .348.2 -10.2 397.6 304.9
QinetiQ Group . . . . . .135.0 -2.4 137.5 101.5
RoIIs-Royce Group . .719.0 -6.5 738.0 557.5
Senior . . . . . . . . . . . . .163.3 -8.6 190.6 132.6
UItra EIectronics . . .1468.0 -16.0 1830.0 1305.0
GKN . . . . . . . . . . . . . .178.7 -7.6 245.0 157.0
BarcIays . . . . . . . . . . .181.5 -8.8 333.6 138.9
HSBC HoIdings . . . . .488.8 -16.2 730.9 463.5
LIoyds Banking Gr . . .24.4 -2.3 69.6 21.8
RoyaI Bank of Sco . . .20.6 -1.4 49.0 17.3
Standard Chartere .1419.5 -39.0 1769.0 1169.5
AG Barr . . . . . . . . . .1196.0 -16.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .311.2 2.1 488.1 289.9
Diageo . . . . . . . . . . .1374.0 14.0 1383.0 1112.0
SABMiIIer . . . . . . . . .2180.5 -3.5 2354.5 1979.0
AZ EIectronic Mat . . .236.8 0.8 338.1 206.1
Croda Internation . .1761.0 -39.0 2081.0 1456.0
EIementis . . . . . . . . . .133.1 -1.8 187.4 107.5
Johnson Matthey . .1813.0 -63.0 2119.0 1523.0
Victrex . . . . . . . . . . .1100.0 -10.0 1590.0 1025.0
YuIe Catto & Co . . . . .162.9 -7.1 253.0 148.0
C/$ 1.3203 0.0185
C/ 0.8468 0.0075
C/ 102.77 1.1364
/C 1.1811 0.0105
/$ 1.5592 0.0079
/ 121.38 0.2629
FTSE 100
5427.86
101.35
FTSE 250
9901.15
229.42
FTSE ALLSHARE
2786.80
53.03
DOW
12021.39
162.87
NASDAQ
2612.26
34.59
S&P 500
1236.47
18.72
RPC Group . . . . . . . .347.4 -7.6 384.8 217.0
Smiths Group . . . . . .904.0 -19.5 1429.0 869.5
Brown (N.) Group . . .234.6 -0.5 311.2 233.4
Carpetright . . . . . . . . .395.4 -23.1 835.5 375.0
Debenhams . . . . . . . . .58.0 -1.1 74.8 51.2
Dignity . . . . . . . . . . . .803.5 -14.0 854.5 648.5
Dixons RetaiI . . . . . . .10.8 -0.1 26.0 9.4
DuneImGroup . . . . . .428.4 -1.6 550.0 383.9
HaIfords Group . . . . .311.0 -1.9 459.7 268.6
Home RetaiI Group . . .87.4 -1.4 235.0 72.5
Inchcape . . . . . . . . . .293.0 -12.2 425.4 268.1
JD Sports Fashion . .650.0 -44.5 1030.0 650.0
Kesa EIectricaIs . . . . .69.0 -1.6 168.6 65.6
Kingfisher . . . . . . . . .248.1 -7.2 287.1 217.0
Marks & Spencer G . .312.3 -3.0 402.2 301.8
Mothercare . . . . . . . .168.0 7.4 626.5 127.3
Next . . . . . . . . . . . . .2600.0 5.0 2810.0 1868.0
Sports Direct Int . . . .203.2 -8.4 266.2 145.4
WH Smith . . . . . . . . . .505.0 -12.0 558.0 433.8
Smith & Nephew . . . .586.5 -2.5 742.0 521.0
Synergy HeaIth . . . . .849.5 20.5 981.0 808.0
Barratt DeveIopme . . .92.7 -4.0 119.0 67.5
BeIIway . . . . . . . . . . . .735.0 -14.0 776.5 540.5
BaIfour Beatty . . . . . .244.6 -7.3 357.3 214.6
GaIIiford Try . . . . . . . .450.0 -7.5 530.0 286.5
Kier Group . . . . . . . .1342.0 -28.0 1458.0 1097.0
Drax Group . . . . . . . .546.5 -4.0 581.5 359.2
SSE . . . . . . . . . . . . . .1260.0 5.0 1423.0 1125.0
Domino Printing S . .436.5 -55.9 705.0 434.3
HaIma . . . . . . . . . . . . .337.1 -4.9 429.6 306.3
Laird . . . . . . . . . . . . . .145.0 0.5 207.0 127.9
Morgan CrucibIe C . .252.0 -9.0 357.1 224.0
Oxford Instrument . .993.0 -13.0 1012.0 600.5
Renishaw . . . . . . . . . .905.0 -44.0 1886.0 800.0
Spectris . . . . . . . . . .1188.0 -48.0 1679.0 1039.0
Aberforth SmaIIer . . .503.0 -8.5 714.0 503.0
AIIiance Trust . . . . . .335.0 -5.4 392.7 310.2
Bankers Inv Trust . . .371.0 -7.0 428.0 346.5
BH GIobaI Ltd. GB .1200.0 2.0 1212.0 1058.0
BH GIobaI Ltd. US . . . .11.9 0.2 12.2 10.4
BH Macro Ltd. EUR . . .19.7 -0.1 20.2 15.8
BH Macro Ltd. GBP 2046.0 9.0 2078.0 1630.0
BH Macro Ltd. USD . . .19.8 0.1 20.2 15.8
BIackRock WorId M .609.0 -18.0 815.5 574.5
BIueCrest AIIBIue . . .166.1 0.1 176.2 162.4
British Assets Tr . . . .114.0 -2.9 140.5 109.0
British Empire Se . . .417.3 -9.4 533.0 409.9
CaIedonia Investm .1395.0 -26.0 1928.0 1395.0
City of London In . . .277.2 -4.9 306.9 257.0
Dexion AbsoIute L . .133.3 -0.7 151.0 130.0
Edinburgh Dragon . .211.6 -4.4 262.1 201.4
Edinburgh Inv Tru . . .462.0 -2.5 492.2 414.9
EIectra Private E . . .1446.0 -11.0 1755.0 1287.0
F&C Inv Trust . . . . . .282.2 -5.7 327.9 261.5
FideIity China Sp . . . . .75.0 -3.8 122.9 70.0
FideIity European . . .967.0 -29.5 1287.0 912.0
HeraId Inv Trust . . . . .437.0 -8.7 545.5 419.0
HICL Infrastructu . . . .117.4 -0.2 121.3 112.7
Impax Environment . .94.7 -1.6 130.5 88.5
JPMorgan American .821.5 -16.0 916.0 721.5
JPMorgan Asian In . .183.5 -2.0 250.8 170.1
JPMorgan Emerging .515.5 -16.0 639.0 480.1
JPMorgan European .643.0 -22.5 983.5 643.0
JPMorgan Indian I . . .315.3 -18.2 488.0 315.3
JPMorgan Russian .480.0 -18.0 755.0 415.1
Law Debenture Cor . .343.1 -5.6 385.0 321.0
MercantiIe Inv Tr . . . .847.5 -25.5 1137.0 825.0
Merchants Trust . . . .355.4 -9.6 431.8 341.5
Monks Inv Trust . . . .309.5 -3.0 367.9 298.1
Murray Income Tru . .601.0 -16.5 673.0 568.0
Murray Internatio . . .895.5 -17.5 991.5 818.5
PerpetuaI Income . . .246.6 -3.4 276.0 236.5
PersonaI Assets T .33670.0-140.0 34060.030210.0
PoIar Cap TechnoI . .325.5 -5.6 391.2 299.5
RIT CapitaI Partn . . .1200.0 -33.0 1360.0 1173.0
Scottish Inv Trus . . . .446.0 -7.0 524.0 417.0
Scottish Mortgage . .599.0 -17.5 781.0 573.5
SVG CapitaI . . . . . . . .184.5 -2.8 279.8 182.1
TempIe Bar Inv Tr . . .840.0 -16.5 952.0 791.0
TempIeton Emergin .543.0 -12.0 689.5 497.0
TR Property Inv T . . .147.0 -3.4 206.1 140.5
TR Property Inv T . . . .67.6 -0.3 94.0 67.6
Witan Inv Trust . . . . .431.0 -10.8 533.0 401.5
3i Group . . . . . . . . . . .180.4 -3.2 340.0 176.9
3i Infrastructure . . . . .119.7 0.1 125.2 113.1
Aberdeen Asset Ma .209.0 -3.7 240.0 167.8
Ashmore Group . . . .327.5 -12.5 420.0 301.5
Brewin DoIphin Ho . .133.0 -0.2 185.4 113.7
CameIIia . . . . . . . . . .9550.0 49.010950.0 8800.0
CharIes TayIor Co . . .125.3 4.3 166.5 119.4
City of London Gr . . . .61.3 0.0 93.6 61.3
City of London In . . .338.3 -10.3 461.5 321.3
CIose Brothers Gr . . .597.5 -17.5 888.5 597.5
CoIIins Stewart H . . . .50.0 0.5 90.8 48.5
EvoIution Group . . . . .78.8 -4.0 94.0 62.3
F&C Asset Managem .65.6 -2.1 92.9 56.1
Hargreaves Lansdo .440.9 -16.7 646.5 402.5
HeIphire Group . . . . . . .2.0 -0.2 17.4 1.4
Henderson Group . . .106.7 -4.9 173.1 95.1
Highway CapitaI . . . . .12.0 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .329.5 -12.2 570.5 311.6
IG Group HoIdings . .461.6 -11.4 528.0 393.6
Intermediate Capi . . .226.2 -7.5 360.3 197.9
InternationaI Per . . . .189.6 -14.5 388.8 170.1
InternationaI Pub . . . .118.7 -1.2 119.9 108.6
Investec . . . . . . . . . . .342.6 -12.1 538.0 318.4
IP Group . . . . . . . . . . . .72.3 0.3 76.5 30.2
Jupiter Fund Mana . .221.5 1.7 337.3 184.9
Liontrust Asset M . . . .77.3 0.0 87.5 57.9
LMS CapitaI . . . . . . . . .54.9 -0.1 64.8 44.8
London Finance & . . .22.5 0.0 23.5 16.5
London Stock Exch .780.0 -40.0 1076.0 772.5
Lonrho . . . . . . . . . . . . .10.0 0.0 19.8 8.9
Man Group . . . . . . . . .130.2 -4.6 311.0 123.6
Paragon Group Of . .178.2 -6.8 206.1 134.6
Provident Financi . . .949.0 -11.0 1124.0 825.5
Rathbone Brothers .1059.0 -26.0 1257.0 977.0
Record . . . . . . . . . . . . .13.9 -0.1 40.5 13.5
RSM Tenon Group . . .14.0 -0.3 66.3 13.8
Schroders . . . . . . . .1302.0 -62.0 1922.0 1183.0
Schroders (Non-Vo .1055.0 -59.0 1554.0 970.0
TuIIett Prebon . . . . . .272.6 -11.3 428.6 272.5
WaIker Crips Grou . . .44.0 -0.5 51.5 44.0
BT Group . . . . . . . . . .189.6 -3.8 204.1 161.0
CabIe & WireIess . . . .37.4 -0.4 52.9 31.3
CabIe & WireIess . . . .17.2 -0.1 76.9 14.2
COLT Group SA . . . . .92.3 -2.4 156.2 84.1
KCOM Group . . . . . . . .69.5 -1.3 84.0 52.3
TaIkTaIk TeIecom . . .135.9 -0.7 168.3 119.8
TeIecomPIus . . . . . . .772.0 -8.0 802.0 432.0
Booker Group . . . . . . .70.3 -3.8 80.0 54.5
Greggs . . . . . . . . . . . .499.4 -6.1 550.5 436.4
Morrison (Wm) Sup .314.1 -2.5 322.9 262.7
Ocado Group . . . . . . . .80.0 -4.3 285.0 80.0
Sainsbury (J) . . . . . . .292.7 -4.5 391.5 263.5
Tesco . . . . . . . . . . . . .391.5 -7.5 439.0 356.3
Associated Britis . .1085.0 0.0 1182.0 940.0
Cranswick . . . . . . . . .748.0 -9.0 882.0 588.5
Dairy Crest Group . . .322.7 -3.1 424.9 318.8
Devro . . . . . . . . . . . . .251.6 -4.2 296.9 223.5
Premier Foods . . . . . . . .5.9 0.1 35.1 3.3
Tate & LyIe . . . . . . . . .675.5 -10.0 689.5 511.0
UniIever . . . . . . . . . .2116.0 -16.0 2142.0 1793.0
Mondi . . . . . . . . . . . . .442.0 -15.2 664.0 413.5
Centrica . . . . . . . . . . .285.1 -1.7 345.8 282.6
InternationaI Pow . . .324.4 -0.9 448.6 279.4
NationaI Grid . . . . . . .604.5 -1.0 649.5 530.0
Pennon Group . . . . . .676.5 -7.0 737.5 584.5
Severn Trent . . . . . .1473.0 -5.0 1600.0 1368.0
United UtiIities . . . . .599.0 -2.0 637.0 543.5
Cookson Group . . . . .470.3 -20.3 724.5 395.8
DS Smith . . . . . . . . . .190.4 -4.6 266.2 164.4
Rexam . . . . . . . . . . . .342.8 -4.5 400.0 299.8
Price Chg High Low
BerkeIey Group Ho .1260.0 -27.0 1360.0 884.5
Bovis Homes Group .453.0 -9.9 499.6 326.5
Persimmon . . . . . . . .469.0 -12.7 518.5 374.0
Reckitt Benckiser . .3204.0 -38.0 3648.0 3015.0
Redrow . . . . . . . . . . . .110.0 -4.2 139.0 103.5
TayIor Wimpey . . . . . . .36.1 -0.9 43.3 27.3
Bodycote . . . . . . . . . .253.3 -11.0 397.7 225.6
Charter Internati . . . .931.5 -3.5 952.0 538.5
Fenner . . . . . . . . . . . .379.0 -4.0 422.5 280.0
IMI . . . . . . . . . . . . . . . .724.5 -6.5 1119.0 636.5
MeIrose . . . . . . . . . . .343.1 -5.9 365.4 268.0
Northgate . . . . . . . . . .216.8 -8.0 346.7 215.1
Rotork . . . . . . . . . . .1780.0 -29.0 1858.0 1501.0
Spirax-Sarco Engi . .1787.0 -40.0 2063.0 1649.0
Weir Group . . . . . . .1893.0 -72.0 2218.0 1375.0
Ferrexpo . . . . . . . . . . .266.8 -21.0 499.0 238.7
TaIvivaara Mining . . .229.9 -4.5 622.0 195.2
BBAAviation . . . . . . .175.9 -1.6 240.8 156.0
Stobart Group Ltd . . .118.0 -2.6 163.6 112.0
AdmiraI Group . . . . . .824.5 -30.0 1754.0 800.5
AmIin . . . . . . . . . . . . .317.7 -9.9 427.0 270.6
Huntsworth . . . . . . . . .39.0 0.3 85.0 36.3
Informa . . . . . . . . . . . .344.9 -12.3 461.1 313.9
ITE Group . . . . . . . . . .196.6 -7.2 258.2 157.7
ITV . . . . . . . . . . . . . . . . .61.7 -3.0 93.5 51.7
Johnston Press . . . . . . .5.1 0.3 12.8 4.1
MecomGroup . . . . . .200.0 0.0 310.0 134.5
Moneysupermarket. .103.8 -3.6 120.4 75.7
Pearson . . . . . . . . . .1128.0 -16.0 1207.0 983.0
PerformGroup . . . . .202.0 -9.0 234.5 150.0
Reed EIsevier . . . . . .510.0 -11.5 590.5 461.3
Rightmove . . . . . . . .1187.0 -25.0 1408.0 743.0
STV Group . . . . . . . . . .85.5 0.0 168.0 83.9
Tarsus Group . . . . . .131.5 0.5 165.0 114.0
Trinity Mirror . . . . . . . .51.0 -1.5 93.0 37.5
UBM . . . . . . . . . . . . . .469.8 -18.3 725.0 416.0
UTV Media . . . . . . . . .100.5 0.5 150.0 99.0
WiImington Group . . .85.0 0.3 183.0 82.5
WPP . . . . . . . . . . . . . .650.0 -15.5 846.5 578.0
YeII Group . . . . . . . . . . .5.2 -0.2 14.8 3.4
African Barrick G . . .472.3 -36.7 618.5 393.5
AIIied GoId Minin . . .163.8 -2.7 281.3 34.4
AngIo American . . .2347.0-102.0 3437.0 2138.5
AngIo Pacific Gro . . .272.4 -9.9 369.3 237.9
Antofagasta . . . . . . .1156.0 -72.0 1634.0 900.5
Aquarius PIatinum . .160.0 -15.0 419.0 150.0
BeazIey . . . . . . . . . . . .131.2 -3.9 139.2 109.6
CatIin Group Ltd. . . .391.7 -14.0 421.4 334.0
Hiscox Ltd. . . . . . . . . .362.5 -12.5 424.7 340.5
Jardine LIoyd Tho . . .635.0 -15.5 764.5 576.0
Lancashire HoIdin . . .713.5 -11.0 774.5 532.5
RSA Insurance Gro . .102.9 -3.1 143.5 102.2
Aviva . . . . . . . . . . . . . .301.0 -20.3 477.9 275.3
LegaI & GeneraI G . . .102.7 -3.8 123.8 89.8
OId MutuaI . . . . . . . . .113.5 -3.8 144.8 98.1
Phoenix Group HoI . .529.5 -20.5 688.0 451.1
PrudentiaI . . . . . . . . .624.0 -30.5 777.0 509.0
ResoIution Ltd. . . . . .247.5 -5.6 316.1 229.5
St James's PIace . . . .322.6 -9.5 376.0 265.7
Standard Life . . . . . . .196.6 -7.2 244.7 172.0
4Imprint Group . . . . .220.0 0.0 295.0 200.0
Aegis Group . . . . . . .137.4 -1.5 158.5 115.7
BIoomsbury PubIis . . .99.3 1.5 138.0 91.3
British Sky Broad . . .728.5 -5.0 850.0 618.5
Centaur Media . . . . . . .35.9 0.1 73.0 34.6
Chime Communicati .166.8 -2.0 298.5 166.8
Creston . . . . . . . . . . . .72.8 -0.3 121.0 71.3
DaiIy MaiI and Ge . . .391.7 -10.5 594.5 343.4
Euromoney Institu . .658.0 -5.5 736.0 522.5
Future . . . . . . . . . . . . . . .9.0 0.0 30.0 8.5
Haynes PubIishing . .215.0 0.0 257.0 210.0
BHP BiIIiton . . . . . . .1897.0 -64.0 2631.5 1667.0
Centamin Egypt Lt . . .93.1 -2.8 177.2 80.8
Eurasian NaturaI . . .634.5 -50.5 1125.0 522.0
FresniIIo . . . . . . . . . .1654.0-115.0 2150.0 1296.0
GemDiamonds Ltd. .188.9 8.6 306.0 179.8
GIencore Internat . . .387.5 -17.2 531.1 348.0
HochschiId Mining . .408.3 -24.7 680.0 394.9
Kazakhmys . . . . . . . .880.0 -63.0 1671.0 730.0
Kenmare Resources . .38.6 -1.7 59.9 25.8
Lonmin . . . . . . . . . . . .975.0 -47.0 1983.0 963.0
New WorId Resourc .412.6 -28.4 1060.0 410.5
PetropavIovsk . . . . . .646.5 -39.0 1158.0 543.5
RandgoId Resource 6655.0-215.0 7555.0 4425.0
Rio Tinto . . . . . . . . . .3119.0-126.5 4712.0 2712.5
Vedanta Resources 1065.0 -47.0 2559.0 928.0
Xstrata . . . . . . . . . . . .955.4 -56.1 1550.0 764.0
Inmarsat . . . . . . . . . . .400.9 -22.5 719.5 389.3
Vodafone Group . . . .173.2 -1.0 182.8 155.1
Genesis Emerging . .440.0 -10.0 568.0 424.0
Afren . . . . . . . . . . . . . . .80.0 -4.5 171.2 73.6
BG Group . . . . . . . . .1324.5 -24.0 1564.5 1144.0
BP . . . . . . . . . . . . . . . .444.6 -7.5 509.0 363.2
Cairn Energy . . . . . . .274.6 -2.4 469.7 261.4
EnQuest . . . . . . . . . . . .89.6 -4.2 158.5 85.7
Essar Energy . . . . . .203.9 -19.0 589.5 203.9
ExiIIon Energy . . . . . .258.0 -9.3 469.7 184.2
Heritage OiI . . . . . . . .176.9 -2.7 486.0 160.0
Ophir Energy . . . . . . .252.8 -8.2 299.0 184.5
Premier OiI . . . . . . . . .371.2 -4.3 535.0 310.0
RoyaI Dutch SheII . .2261.5 -32.0 2326.5 1883.5
RoyaI Dutch SheII . .2325.0 -31.0 2361.0 1890.5
SaIamander Energy .206.0 -3.2 317.6 182.3
Soco Internationa . . .288.3 -11.0 400.0 278.0
TuIIow OiI . . . . . . . . .1328.0 -42.0 1493.0 945.5
Amec . . . . . . . . . . . . .897.5 -13.5 1251.0 740.5
Hunting . . . . . . . . . . .700.0 -5.5 817.0 530.0
Kentz Corporation . .453.4 -24.6 508.0 290.5
LampreII . . . . . . . . . . .265.7 -15.5 395.2 220.7
Petrofac Ltd. . . . . . .1373.0 -41.0 1685.0 1108.0
Wood Group (John) .633.0 -16.0 715.8 469.9
Burberry Group . . . .1217.0 -46.0 1600.0 1030.0
PZ Cussons . . . . . . . .318.3 5.0 404.0 308.7
Supergroup . . . . . . . .495.4 -5.6 1820.0 435.2
AstraZeneca . . . . . .2920.5 -34.0 3194.0 2543.5
BTG . . . . . . . . . . . . . .300.5 -4.6 309.7 210.1
Genus . . . . . . . . . . . .1030.0 -14.0 1111.0 831.5
GIaxoSmithKIine . . .1428.5 4.5 1449.5 1127.5
Hikma Pharmaceuti .646.0 -8.5 900.0 555.5
Shire PIc . . . . . . . . . .2106.0 -25.0 2152.0 1481.0
CapitaI & Countie . . .171.2 -1.8 203.7 142.8
Daejan HoIdings . . .2726.0 1.0 2954.0 2282.0
F&C CommerciaI Pr .100.1 -1.1 108.0 92.6
Grainger . . . . . . . . . . . .98.0 -4.2 133.2 77.3
London & Stamford .104.9 -0.7 140.0 104.0
SaviIIs . . . . . . . . . . . . .300.0 1.6 427.1 256.2
UK CommerciaI Pro . .69.2 -0.2 85.5 69.0
Unite Group . . . . . . . .162.7 -7.4 224.1 152.9
Big YeIIow Group . . .260.0 0.0 352.2 218.0
British Land Co . . . . .456.4 -12.1 629.5 452.0
CapitaI Shopping . . .305.7 -10.5 424.8 288.7
Derwent London . . .1521.0 -55.0 1880.0 1400.0
Great PortIand Es . . .325.9 -9.0 445.0 317.4
Hammerson . . . . . . . .359.2 -11.8 490.9 352.0
Hansteen HoIdings . . .69.0 -1.0 89.5 69.0
Land Securities G . . .629.0 -22.0 885.0 616.0
SEGRO . . . . . . . . . . . .208.0 -7.2 331.3 204.8
Shaftesbury . . . . . . . .474.0 -18.9 539.0 435.4
Aveva Group . . . . . .1477.0 -23.0 1799.0 1298.0
Computacenter . . . . .344.0 -2.2 490.0 327.7
Fidessa Group . . . . .1608.0 -9.0 2109.0 1444.0
Invensys . . . . . . . . . . .198.8 -3.8 364.3 180.9
Logica . . . . . . . . . . . . .73.6 -3.5 147.2 67.6
Micro Focus Inter . . .369.6 -10.8 426.2 239.4
Misys . . . . . . . . . . . . .234.5 -9.3 420.2 214.9
Sage Group . . . . . . . .284.8 -1.8 302.0 231.7
SDL . . . . . . . . . . . . . . .676.0 -12.5 711.5 586.0
TeIecity Group . . . . . .622.0 -13.5 638.5 430.0
Aggreko . . . . . . . . . .1812.0 -41.0 2034.0 1394.5
Ashtead Group . . . . .200.0 -6.9 211.7 99.4
Atkins (WS) . . . . . . . .616.5 -9.0 820.0 490.2
Babcock Internati . . .711.5 0.0 733.0 540.5
Berendsen . . . . . . . . .412.0 -2.5 568.0 402.7
BunzI . . . . . . . . . . . . .840.0 -3.0 844.5 676.5
Cape . . . . . . . . . . . . . .319.6 -11.8 591.5 295.0
Capita Group . . . . . . .618.0 -8.0 786.5 614.5
CariIIion . . . . . . . . . . .304.0 -11.4 403.2 281.0
De La Rue . . . . . . . . .868.0 -1.0 936.0 667.0
DipIoma . . . . . . . . . . .321.7 -11.3 414.3 263.3
EIectrocomponents .192.2 -3.4 294.9 182.2
Experian . . . . . . . . . . .809.0 -7.0 844.0 665.0
FiItrona PLC . . . . . . . .370.7 -15.3 397.1 236.9
G4S . . . . . . . . . . . . . . .249.5 -1.7 291.0 219.9
Hays . . . . . . . . . . . . . . .62.2 -1.1 133.6 62.1
Homeserve . . . . . . . .294.5 -6.6 532.0 218.5
Howden Joinery Gr . . .98.3 -3.5 127.5 93.1
Interserve . . . . . . . . . .315.2 -4.8 341.3 201.5
Intertek Group . . . . .1921.0 -22.0 2148.0 1715.0
MichaeI Page Inte . . .324.5 -1.2 567.0 322.2
Mitie Group . . . . . . . .240.0 -1.8 258.1 195.9
Premier FarneII . . . . .176.0 -1.0 308.8 144.5
Regus . . . . . . . . . . . . . .79.1 -5.7 119.0 64.0
RentokiI InitiaI . . . . . . .61.4 -2.3 104.9 61.0
RPS Group . . . . . . . . .180.0 -1.5 253.0 156.6
Serco Group . . . . . . .465.7 -5.5 618.5 465.7
Shanks Group . . . . . .103.8 -2.2 130.9 103.0
SIG . . . . . . . . . . . . . . . .77.5 -2.5 153.5 76.8
SThree . . . . . . . . . . . .205.5 -3.0 447.6 205.0
Travis Perkins . . . . . .814.5 -15.5 1127.0 715.0
WoIseIey . . . . . . . . .1915.0 -51.0 2261.0 1404.0
ARM HoIdings . . . . . .565.0 -5.0 651.0 389.6
CSR . . . . . . . . . . . . . .183.1 16.3 447.0 154.1
Imagination Techn . .437.0 -12.3 502.0 296.9
Pace . . . . . . . . . . . . . . .67.4 -4.5 231.8 44.0
Spirent Communica .112.5 -7.4 160.0 109.5
British American . .3000.0 1.5 3042.5 2282.5
ImperiaI Tobacco . .2363.0 12.0 2391.0 1784.0
Betfair Group . . . . . . .785.0 -13.5 1235.0 567.0
Bwin.party Digita . . .131.8 -7.7 235.5 100.6
CarnivaI . . . . . . . . . .2175.0 -15.0 3153.0 1742.0
Compass Group . . . .584.0 -3.5 612.0 512.5
Domino's Pizza UK . .405.3 -14.8 586.0 377.0
easyJet . . . . . . . . . . . .376.0 -3.0 474.0 301.0
FirstGroup . . . . . . . . .320.4 1.2 412.6 301.8
Go-Ahead Group . . .1232.0 -3.0 1598.0 1190.0
Greene King . . . . . . .465.5 -2.4 518.0 410.0
InterContinentaI . . .1105.0 -12.0 1435.0 955.0
InternationaI Con . . .146.8 -6.5 305.0 132.0
JD Wetherspoon . . . .415.0 -3.6 468.3 380.5
Ladbrokes . . . . . . . . .125.0 -3.6 155.3 114.0
Marston's . . . . . . . . . . .92.5 -2.8 117.1 84.6
MiIIennium& Copt . .406.6 -8.3 600.5 371.2
MitcheIIs & ButIe . . . .222.7 -2.5 361.0 215.6
NationaI Express . . .213.2 -3.4 270.2 201.6
Rank Group . . . . . . . .147.0 -3.9 153.7 109.5
Restaurant Group . . .292.4 -2.6 335.0 254.9
Stagecoach Group . .254.2 -0.7 272.4 200.0
Thomas Cook Group .15.3 0.1 204.8 10.2
TUI TraveI . . . . . . . . . .152.2 -4.2 271.9 136.7
Whitbread . . . . . . . .1576.0 -23.0 1887.0 1409.0
WiIIiamHiII . . . . . . . . .192.6 -4.4 244.1 164.2
Abcam . . . . . . . . . . . .345.0 -12.0 460.0 307.0
Advanced MedicaI . . .90.0 0.0 96.0 64.8
AIbemarIe & Bond . .340.6 6.0 400.1 272.0
Amerisur Resource . .16.8 -1.0 29.0 9.5
Andor TechnoIogy . .567.5 -9.0 685.0 387.1
ArchipeIago Resou . . .69.0 -1.0 79.0 51.0
ASOS . . . . . . . . . . . .1240.0 10.0 2468.0 1214.0
AureIian OiI & Ga . . . .18.3 0.0 92.0 16.0
Avanti Communicat .280.5 -19.5 728.0 248.5
BIinkx . . . . . . . . . . . . . .67.3 -0.8 158.0 64.8
Borders & Souther . . .61.0 -1.8 72.3 43.5
BowLeven . . . . . . . . . .67.0 -3.5 398.0 65.0
Brooks MacdonaId 1040.0 -32.5 1372.5 940.0
Cove Energy . . . . . . . .94.0 -3.3 112.8 61.0
Daisy Group . . . . . . . .99.0 -4.0 127.0 88.0
EMIS Group . . . . . . . .520.0 10.0 580.0 415.8
Encore OiI . . . . . . . . . .77.0 -0.3 151.5 40.8
Faroe PetroIeum . . . .150.0 -5.3 218.3 130.0
GuIfsands PetroIe . . .170.0 -16.3 401.5 142.5
GWPharmaceuticaI . .90.0 -0.8 130.0 87.0
H&T Group . . . . . . . . .330.0 -10.0 395.0 277.0
Hamworthy . . . . . . . .827.5 -0.5 833.5 373.8
Hargreaves Servic .1121.0 -14.0 1180.0 760.0
HeaIthcare Locums . . . .2.9 -0.2 3.5 2.8
Immunodiagnostic . .450.0 0.0 1218.0 430.0
ImpeIIamGroup . . . .265.0 -2.6 387.5 180.5
James HaIstead . . . . .447.6 0.1 495.0 365.0
KaIahari MineraIs . . .242.0 -0.5 301.0 198.3
London Mining . . . . .305.3 -8.8 436.5 278.5
Lupus CapitaI . . . . . .104.6 -0.4 150.0 86.0
M. P. Evans Group . .406.5 2.0 500.5 371.0
Majestic Wine . . . . . .347.5 2.5 510.0 345.0
May Gurney Integr . .291.5 1.5 302.0 234.0
Monitise . . . . . . . . . . . .25.5 -2.5 40.0 18.5
MuIberry Group . . . .1550.0 8.0 1920.0 890.0
Nanoco Group . . . . . . .60.0 -0.8 107.0 38.0
NauticaI PetroIeu . . .259.0 -7.0 547.0 223.5
NichoIs . . . . . . . . . . . .524.0 4.0 579.0 410.0
Numis Corporation . . .85.0 -0.5 131.0 80.0
Pan African Resou . . .15.5 -1.5 17.0 9.5
Patagonia GoId . . . . . .50.5 -1.0 70.0 37.3
Prezzo . . . . . . . . . . . . .55.3 1.3 71.5 53.5
Pursuit Dynamics . . .202.0 -1.0 560.0 160.5
Rockhopper ExpIor .240.8 -10.3 386.0 141.0
RWS HoIdings . . . . . .460.0 -10.0 479.8 267.0
Songbird Estates . . . .111.3 -3.8 160.3 104.0
VaIiant PetroIeum . . .420.0 -2.0 672.0 400.0
Young & Co's Brew . .683.0 3.0 712.0 565.0
CSR . . . . . . . . . . . . . .183.1 9.8
Gem Diamonds Ltd. .188.9 4.8
Mothercare . . . . . . . .168.0 4.6
Synergy HeaIth . . . . .849.5 2.5
BH GIobaI Ltd. USD . .11.9 2.0
PZ Cussons . . . . . . . .318.3 1.6
Diageo . . . . . . . . . . .1374.0 1.0
Premier Foods . . . . . . . .5.9 0.9
Jupiter Fund Manag .221.5 0.8
Britvic . . . . . . . . . . . . .311.2 0.7
Domino Printing Sc .436.5 -11.4
LIoyds Banking Gro . .24.4 -8.6
Aquarius PIatinum . .160.0 -8.6
Essar Energy . . . . . .203.9 -8.5
Eurasian NaturaI R . .634.5 -7.4
Ferrexpo . . . . . . . . . .266.8 -7.3
African Barrick Go . .472.3 -7.2
InternationaI Pers . . .189.6 -7.1
Regus . . . . . . . . . . . . . .79.1 -6.7
Kazakhmys . . . . . . . .880.0 -6.7
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
CHEMICALS
BEVERAGES
GENERAL INDUSTRIALS
MOBILE TELECOMS
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
MINING
NONEQUITY INVESTM. COMM.
Tsy 5.000 12 . . . .101.07 0.00 105.2 101.0
Tsy 5.250 12 . . . .102.36 0.00 106.5 102.3
Tsy 9.000 12 . . . .105.66 0.00 113.1 104.8
Tsy 4.500 13 . . . .105.08 0.02 107.5 105.0
Tsy 2.500 13 . . . .283.55 -0.02 287.7 277.6
Tsy 8.000 13 . . . . .113.58 0.04 118.6 113.5
Tsy 5.000 14 . . . . .112.44 0.08 112.9 109.2
Tsy 4.750 15 . . . . .115.33 0.15 115.4 108.6
Tsy 8.000 15 . . . .128.83 0.12 129.2 123.7
Tsy 7.750 15 . . . .100.10 -1.09 107.6 100.1
Tsy 4.000 16 . . . . .114.47 0.14 114.7 104.9
Tsy 2.500 16 . . . .340.86 -0.07 342.7 310.2
Tsy 8.750 17 . . . .141.46 0.24 142.1 132.9
Tsy 1.250 17 . . . . .114.92 -0.12 115.4 106.7
Tsy 12.000 17 . . .124.73 1.38 131.2 122.3
Tsy 5.000 18 . . . .122.27 0.27 122.4 109.7
Tsy 4.500 19 . . . .120.38 0.37 120.5 105.4
Tsy 3.750 19 . . . . .115.13 0.38 115.1 99.4
Tsy 2.500 20 . . . .360.64 0.10 361.9 312.9
Tsy 4.750 20 . . . .122.89 0.47 122.9 106.6
Tsy 8.000 21 . . . .152.09 0.52 152.1 133.8
Tsy 4.000 22 . . . . .116.95 0.61 117.0 99.0
Tsy 1.875 22 . . . .124.99 0.16 125.5 111.3
Tsy 2.500 24 . . . .323.45 0.23 324.8 275.4
Tsy 5.000 25 . . . .128.89 0.68 128.9 107.4
Tsy 4.250 27 . . . .120.33 0.77 120.8 97.9
Tsy 1.250 27 . . . .120.94 0.29 123.7 104.8
Tsy 6.000 28 . . . .145.13 0.73 145.8 119.5
Tsy 4.750 30 . . . .127.35 0.94 128.5 103.0
Tsy 4.125 30 . . . .307.64 0.38 316.0 262.1
Tsy 4.250 32 . . . . .119.75 1.02 121.1 96.0
Tsy 4.250 36 . . . .120.54 1.22 122.2 95.0
Tsy 4.750 38 . . . .130.30 1.35 132.3 102.8
Tsy 4.500 42 . . . .126.75 1.53 129.2 98.9
% %
Big brands. Big fees. Big on the one size fits all.
Big mistake.
www.novoaltum.com
Winners of the prestigious Management Consulting Association (MCA) Award
Best Finance and Risk Management Firm in the United Kingdom 2011
Novo Altum Dening CFO performance to deliver sustainable results.
AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET
MANAGEMENT
CONSULTANCY
Major asset: Alan Leaman, chief executive of the Management
Consultancies Association discusses what the consulting industry can ofer
IMPROVE YOUR
EFFICIENCY
Economic crisis
A look at how
consultants are
helping banks
through current
difculties
Unsung heroes
Consultants
proven as a
reliable source
of growth
Changes ahead
We see them
opening up to
the SME market
3
STEPS
P
H
O
T
O
:
P
R
O
V
I
D
E
D
B
Y
T
H
E
M
C
A
No. 1 / Dec. 11
2 DECEMBER 2011 AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET
S
entiment has de-
clined dramatical-
ly in recent weeks.
A survey of senior
management con-
sultants, conducted
for the MCA by Ip-
sos Mori, shows a rapid increase in
the proportion of those who expect
the economic climate to deteriorate
over the next year.
For financial services compa-
nies, the task now is to navigate a
clear path out of the nancial cri-
sis towards a more responsible and
successful future.At the same time
there is the dif cult job of reconcil-
ing the immediate needs of busi-
ness customers with the require-
ment to build up capital. The sec-
tors leaders are heavily engaged in
this process and are reaching out to
politicians and the wider public.
Some people argue that this jour-
ney must lead to a smaller and less
ambitious financial services in-
dustry; they think that this is part
of the re-balancing of the economy
that they advocate.
We must profoundly hope that
these doomsters dont have their
way. Financial Services is and must
remain a vital source of competi-
tive advantage for the UK economy.
We wont achieve a new and sus-
tainable balance for UK plc just by
shrinking one of our most success-
ful industries.
Close finance link
1
The role of management con-
sultancy has been intimately
linked with nancial services in re-
cent years. The sector remains the
largest user of consulting services
outside of government; in recent
times, we have seen a signicant
bounce-back in demand.
After a dif cult year in 2009,MCA
members reported an increase in
fee income from nancial servic-
es companies of around 24 per cent
in 2010,with banks leading the way.
Fee income from the sector grew
further in 2011 for nearly three quar-
ters of MCA member companies.
This rate of increase is, perhaps,
not surprising. There is a massive
amount of change underway in
banking and insurance, much of
CHALLENGES
Rebuilding growth
through offering value
As Britain comes to the end of a year of low growth, the pressure is on all of us to
demonstrate what we can do to build greater prosperity in the future, surmises
Alan Leaman, Chief Executive of the Management Consultancies Association
SMEs have perhaps
traditionally thought
they werent the type
of company to bring in
consultants, but thats
changing
WE RECOMMEND
MANAGEMENT CONSULTANCY,
1ST EDITION, DECEMBER 2011
Managing Director:
Christopher Emberson
Editorial Manager: Faye Godfrey
Business Development Manager:
Dominic Webber
Responsible for this issue
Project Manager: Fred Gwatkin
Phone: 020 7665 4410
E-mail: fred.gwatkin@mediaplanet.com
Distributed with: City AM
Print: City AM
Mediaplanet contact information:
Phone: 020 7665 4400
Fax: 020 7665 4419
E-mail: info.uk@mediaplanet.com
With thanks to:
We make our readers succeed!
Mediaplanets business is to create
new customers for our advertisers by pro-
viding readers with high-quality editorial
content that motivates them to act.
it complex and demanding. And
the consulting industry ofers a
wide diversity of services, exper-
tise and insight that is proving to
be invaluable.
Code assurance
2
Recent years have also seen big
changes in management con-
sultancy. All MCA member compa-
nies have signed up to our Code of
Practice and submit an annual
statement of compliance.They rec-
ognise that clients are increasingly
looking for quality and commit-
ment, and expect consultancies to
maintain the highest standards of
behaviour and service.
There is also an increasing fo-
cus on value and the return on
investment that consultancies
can generate.
Clients are increasingly contract-
ing for consulting in ways that get
away from simply paying for time
and materials,and focus instead on
the achievement of dened results.
Our recent research suggests
that,across the consulting industry
as a whole, the typical assignment
generates benets for clients that
are equivalent in value to around 6
for every 1 spent in fees. By work-
ing efectively together, clients and
their consultancies can ensure that
they capture this value and more.
Like nancial services, the man-
agement consulting industry is a
major asset for the UK,and for Lon-
don in particular.
We generate export earnings, we
make our own economy more com-
petitive and we generate jobs here
at home. The industry has proved
that it is resilient in tough times
and able to adapt for the good.
Alan Leaman, Chief Executive,
Management Consultancies Association
PAGE 8
Stella Bowdell
Head of the
Institute of
Consulting
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4 DECEMBER 2011 AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET
The word crisis normally fea-
tures in any news broadcast or ar-
ticle about the nancial services
sector and so it is not surprising
that consultants within the bank-
ing sector are nding clients re-
quire calm, independent advice.
As crises are never a time for
reasoned thinking,those involved
in the day-to-day running of a -
nancial institution are beginning
to bring in consultants to ask dif-
ficult questions, according to
Chris Cooper, Founding Partner of
Challenge Consulting.
Asking some fundamental
questions of a bank, to ensure it is
in better shape going forward, is
the antidote to a crucial mistake
many nancial services compa-
nies had made in the good years,
Cooper believes.
A lesson most banks are learning
is that prior to 2008 it said bank
above the front door, he says.
Banking isnt rocket science,
you dont actually make anything
complicated. Its all about deal-
ing with numbers. Its about tak-
ing on risk, balancing that risk
and charging accordingly for
that risk. The very fact that weve
needed so much banking regula-
tion shows that banks could not
be trusted to look after their own
best interest. Theyd forgotten
they were banks, they built ev-
erything on a model that things
would always work out, they
hadnt balanced risk, they hadnt
managed their exposure.
Time to act
Cooper believes the more forward
thinking banks are currently seeing
they have a window of opportuni-
ty to ask consultants what position
they are in and how far from good
they might currently be.
Telling banks that banking is
all about balancing risk by man-
aging it properly and charging ac-
cordingly may sound pretty obvi-
ous, says Cooper.
However,we dont really get in-
volved on the micro level of whom
theyre lending to and what the
forms look like. We ask the more
fundamental questions such as
what their exposure is to difer-
ent sizes of companies and each
industrial sector in diferent re-
gions. The biggest one of all, the
real acid test for us, is how do they
know when its time to stop.
There have to be measures
in place, there has to be a strong
form of control or banks will just
continue to keep moving further
and further away from where they
should be.
Branding advice
The next few years will see a lot of
this activity expanding as banks
work on their brands and initiate
programmes to get to know cus-
tomers better,Cooper predicts.
With Virgin buying Northern
Rock, Cooper foresees nancial in-
stitutions will be calling in consul-
tants to see what the impact will be
and how they could sharpen their
brand image to compete better and
have their name mean something
for consumers to help it stand out.
With a new name on the high
street, that is traditionally seen as
a challenger brand, carrying on as
normal will not be an option.
Chris Cooper
Founding Partner,
Challenge
Consulting
BALANCING
THE BOOKS
Question: Why are banks
calling in consultants to help
them through the current
economic difculties?
Answer: They are realising
there is a window of opportunity
to get top advice on getting
back to basics and managing
risk better
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DECEMBER 2011 5 AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET
The size and scale of the merger and
acquisitions seen in the personal -
nance sectors over the past handful of
years are at a scale where they can tru-
ly be described as once in a generation.
Given that most people in-
volved will probably never have
been responsible for executing
mergers of anywhere close to a
comparable size, it will come as
little surprise that most are call-
ing in management consultants.
Phil Dunmore, Managing Direc-
tor at PIPC,has been involved advis-
ing the likes of RBS and Lloyds. He
claims that when two sides come
together an independent, guiding
hand can ensure that eforts are di-
rected towards building a strong,
combined company and potential
rivalries between the two boards
and senior managers avoided.
The nancial services providers
know consultants whove seen
through major mergers and ac-
quisitions before will have the ex-
perience and wont be swayed by
the internal politics of either or-
ganisation, he says.
They need impartiality and inde-
pendence of focus from consultants
who are not seen as being from either
camp and have the one goal of seeing
through a successful integration.
Success plan
Dunmores advice, and the plan
which he believes management
consultants can bring to banks go-
ing through large-scale change, in-
volves several steps.
First a management consultant
will ensure there is an agreement
on what the nal company is going
to look like, he says.
Then youve actually got to start
integrating systems so the bank can
operate as one,you can optimise lat-
er but you have to get going or noth-
ing will get done. You also need a
plan, that might well change, but
you have to have a plan and you also
need people that are accountable for
each part of it. You need leadership
and accountability but, most of all,
you need honest communication at
every level of the company. People
need to know how change will af-
fect the company and them.
The years that have recently
passed and the ones immediately
ahead will see bank heads make the
biggest decisions they will ever be
confronted with. Those decisions,
Dunmore insists, are more likely
to be for the better if they are made
with the impartial advice from ex-
perts who have been in similar situ-
ations many times before.
Keeping mergers
politics free
SEAN HARGRAVE
info.uk@mediaplanet.com
Unprecedented mergers
are being kept on track by
independent consultants
free of internal politics
NEWS
NEWS IN BRIEF
Bernie Levins, Head of Financial
Services consulting at PIPC
US Foreign Account
Tax Compliance Act
(FATCA)
Retail Distribution
Review (RDR)
This review aims to tackle the po-
tential conict of interest that could
occur as a result of selling commis-
sion-based products.The impact of
this regulatory change will be felt
by product providers and the Inde-
pendent Financial Advisors.
The US Government has an-
nounced measures to identify US
Nationals seeking to use of-shore
facilities to avoid domestic tax li-
abilities. Institutions providing
banking services to those liable for
US tax must identify these custom-
ers,provide details to the US tax au-
thorities and in certain circum-
stances, withhold an appropriate
amount to cover any liability.
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Phil Dunmore
Managing Director,
PIPC
Vickers Report/
Independent
Commission on
Banking
The recommendations from
this report are currently being
reviewed by the Treasury. While
much of the reported focus has
been on how to split Investment
and Retail Banking activities, it
also addresses other issues such
as improving the ef ciency by
which customers can switch ac-
counts from one bank to another.
FINANCIAL DISTRICT
Consultants are helping
banks go back to basics
to guide them through the
economic difficulties
PHOTO: SHUTTERSTOCK
6 DECEMBER 2011 AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET
INSPIRATION
Skilled consultants in
constant demand
The management consultancy
industry, like any other, is evolv-
ing in the current period of eco-
nomic difficulty.
The biggest impact on consul-
tants has been a decline in the
public sector work which has
seen a large-scale move from
public to private work. Neverthe-
less, a recent government report
did underline the value consul-
tants can provide to central and
national authorities and so the
trend is not seen as permanent.
So, todays management con-
sultants are far more likely to
find themselves working in the
private sector and, here, flexibil-
ity is the key, advises Alan Lea-
man, Chief Executive of the Man-
agement Consultancies Associa-
tion (MCA).
What are the priorities?
In his experience, management
consultancy agencies are now
prioritising hiring consultants
with demonstrable skills who
have the potential to move be-
tween roles, companies, sectors
and countries at short notice.
I think were going to see
more of the growing trend for
management consultants to find
themselves being asked to work
abroad, he says.
While I think most are con-
fident we will see some growth
in the UK, a lot of consultancies
are actively expanding their op-
erations in areas showing bet-
ter growth than their tradition-
al strongholds in the UK and USA.
So there is a lot of activity in the
Middle East,Asia and Africa.
Adapting to change
There are obviously very dif-
ferent customs and cultures
in each country within these
areas and so consultancies are
looking for people who can show
they are flexible and adaptable
to cope with doing business in a
totally different way from what
they have been used to.
Make yourself stand out
Hence, if Leaman were to pass on
advice to any young person con-
sidering a career in management
consultancy, it would be to learn
a language.
In addition, there is a single
buzz word consultancies are us-
ing to describe the type of can-
didate that will always stand out
from the crowd.
Authenticity is the word every-
ones using for the characteristic
which is really in demand, he says.
Transparency is very much in
demand with colleagues and cli-
ents. Nobody wants to work with
someone who doesnt give them
the full picture; nobody wants
the wool pulled over their eyes.
Efficiencies in demand
Richard Stewart, Managing Di-
rector of consultancy recruit-
ment agency, Mindbench, agrees
that people skills are very im-
portant in the current mar-
ket which is proving buoyant
as small and medium consul-
tancies have continued to hire
through the entire year.
The large firms reached their
yearly hiring targets early on and
are now generally more cautious
given the uncertain economic
outlook, he reveals.
The smaller and mid-size con-
sulting firms continue to hire in
significant numbers. The firms
with specialist expertise in the
areas of cost reduction includ-
ing BPR, supply chain and pro-
curement, continues to be high
demand. This is as a result of the
needs for corporates to cut costs
in a tough market. Likewise,
firms with expertise in risk-re-
lated areas of financial services
are in high demand as the level
of regulatory legislation affect-
ing banks continues to increase.
Question: Has demand for
consultants suffered with the
economic downturn?
Answer: Driving efciency
programmes is actually
boosting recruitment demand
for exible, skilled consultants
but mainly in the private
sector
SEAN HARGRAVE
info.uk@mediaplanet.com
SHOWCASE
Authenticity is the
word everyones
using for the
characteristic
which is really in
demand
Alan Leaman
Chief Executive of the MCA
QUESTION & ANSWER
How has the credit crunch
and economic turmoil
impacted the financial services
industrys requirement for
consultant services?
!
Before 2008 nancial servic-
es companies werent look-
ing at their cost structures or
overall strategies in the same way
as other sectors,such as manufac-
turing and retail were.Times were
good so it was understandable.
However, for the past three
years or so theyve been starting to
seek guidance on cost and strategy
to help them become more com-
petitive. Diferent companies are
at diferent stages on the journey.
What sort of areas are
financial services companies
looking at?
!
The big one, that Im in-
volved with, is systems.
There are savings and ef ciencies
to be made across any company
but the nancial services compa-
nies are very keen on engaging
management consultants to look
at the computer systems they
have in place.
When the economic situation
was a lot better they were invest-
ing in expensive bespoke systems
that were built virtually from
scratch.This makes them expen-
sive to maintain because its such
a specialist job. So, theres a lot of
work going on helping banks to
pick where they can rely on more
generic computer systems. This
enables them to save money as
well as lowers the risk they expe-
rience by only a select few IT ex-
perts being able to maintain spe-
cialist systems.
What about the overall
strategic picture?
Strategy, in the past, wasnt
central to purchasing deci-
sions but it most denitely is now.
Financial services companies are
taking a far closer look at what
they invest in and if it delivers on
their strategy.
I think a lot of companies realise
they are not diferentiated enough
and so everyones waiting to see
what happens when Virgin takes
over Northern Rock. Will it be an-
other challenger brand? So were
seeing a lot of management con-
sultancy activity around dening
what each company stands for,
where it sees itself going and how
it can focus entirely on the cus-
tomer at the same time as appeal-
ing to new customers bases.
Tim Kerr,
Director,
Novo Altum
!
UNDERSTAND
THE DEMAND
2
STEP
STAND OUT FROM THE CROWD
Alan Leaman, Chief Executive
of the MCA, discusses
the growing demand for
management consultants with
demonstrable skills
PHOTO: PROVIDED BY THE MCA
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8 DECEMBER 2011 AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET
Traditionally, the
public sector and global
enterprises have provided
the main demand for
management consultancy
services. However,
changes in market
conditions and how
modern consultancies
are now prepared to work
is helping to open up the
SME market.
Certainly, Stella Bowdell, Head of
the Institute of Consulting, is no-
ticing an increased interest in
small and medium businesses to
hire experts they might have previ-
ously considered too expensive or
not suited to a company their size.
SMEs have perhaps traditional-
ly thought they werent the type of
company to bring in consultants,
but thats changing, she says.
A lot of company heads are re-
alising that if you bring in con-
sultants its actually a lot better
value than going to the lengths
of hiring someone. If they know
they need a part of the business
turning around or refocused, and
they havent got the skills inter-
nally to see to it, then bringing in
an expert for a pre-determined
length of time is actually really
good value.They dont need train-
ing up and youre not committed
to employing the person or peo-
ple once the project is finished.
In safe hands
One of the big advantages that
working with management con-
sultants will provide for the
board of an SME is they can allow
directors to get on with the day
to day running of the business
while an expert, with a fresh pair
of eyes, addresses the business
concern they have.
At the same time, it would
appear that flexible billing is do-
ing more than any other change
in the industry to give SMEs the
confidence to bring in consul-
tants. For many small company
directors there has always been
a fear that they could be faced
with a large bill and not necessar-
ily have all their objectives met.
However, Bowdell is finding that
many consultancies are now will-
ing to offer tempting assurances.
Payment by results is certain-
ly something were seeing a lot
of, she says.
Its because consultants are
normally so talented and that
theyve got results in the past
for similar companies looking to
achieve similar goals that they
can go in with full condence and
SMEs opening
up to consultants
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eyes
Against the backdrop of an
economic downturn and
many goods and services
being commoditised, stand-
ing out is crucial.
Hence, the driving force behind
many new engagements with
management consultants is com-
ing from companies looking for
a fresh pair of eyes to help renew
their ofering and help diferenti-
ate them.
If you leave milk in the saucer,it
goes sour, sums up Huw Hilditch-
Roberts, Director in Charge of the
Institute of Consulting.
Thats why companies are ea-
ger to step back and re-evaluate
what they do and the best way of
getting that new perspective is
someone whos had experience in
helping other businesses innovate
in diferent industries. Sometimes
the clients have a clear idea where
they want to go but often they
cant see the wood for the trees
and need someone to come in and
guide them.
According to Hilditch-Roberts,
this can include a wide variety
of areas. It could be a consultant
coach improving performance
and helping executives discover
new routes to market,or an IT spe-
cialist improving the bottom line
through more cost-efective sys-
tems which allow the business to
become more agile and improve
speed to market.
Innovation does not necessar-
ily mean new goods and services,
then, but can also include chang-
ing processes or ways of working
which enable the end product to
be improved and more attractive
than rival oferings.
SEAN HARGRAVE
info.uk@mediaplanet.com
ensure they are paid by results.
Quite often this could mean that
rather than a consultant saying
they need so many days, theyll
actually explain that it will prob-
ably take between a range of days
to complete the work and they on-
ly need to be paid if its completed
to the clients satisfaction.
Niche firms
Also,with the rise of boutique con-
sultancy agencies, she is observ-
ing that SMEs who may have been
put of working with a large rm
now appear happy to have the op-
tion of engaging a smaller agency.
By contracting a small team
of consultants who are experts
in the niche area where the SME
is seeking to improve, they can
proceed with greater confidence
they have dedicated experts and
that, crucially, they will contin-
ue to deal with the same person
or people once an agreement has
been signed.
SMEs have perhaps
traditionally thought
they werent the type
of company to bring
in consultants, but
thats changing
Stella Bowdell, Head of the
Institute of Consulting
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10 DECEMBER 2011 AN INDEPENDENT SUPPLEMENT BY MEDIAPLANET
PROFESSIONAL INSIGHT
Management consultants are all about driving growth but taking none of the credit,
according to Paul Winter, President of the Management Consultancies Association
Unsung heroes driving growth
B
ehind most suc-
cessful business an-
nouncements and
turnarounds there
is nearly always sol-
id advice from man-
agement consult-
ants who are often long-gone by the
time the CEO gets a standing ova-
tion at the AGM.
That is certainly the experience
of Paul Winter, President of the
Management Consultancies Asso-
ciation who believes that is exact-
ly how it should be.
Management consultants have a
long, proven history of being a reli-
able source for growth, he says.
So whenever you see a company
or organisation has come on in leaps
and bounds you can almost always be
certain there was engagement with
management consultants involved.
The fact they never get the plaudits
or are never featured in the head-
lines about the turnaround is ne,its
what the role is all about.
Were in the background and
the pats on the back should always
go to the people who show strong
leadership through getting a good
and well-advised management
team around them.A management
consultant will get the job done
and make sure theyre replaced so
someone else can carry on the pro-
gramme when theyre gone.
Crossover specialists
One of the major challenges a man-
agement consultant has to get over,
other than accepting a clients board
will always take the credit,is how the
role actually goes against what most
people are brought up to believe.
Management consultants are
hired by boards who want to drive
growth and turn around a business
yet most business people, like ev-
eryone else, expect people to be ex-
perts in just one area.
Were a nation of specialists, we
all grow up and then do a job that we
largely stick to,becoming an expert
in that area, reects Winter.
The thing is,becoming an expert
can be limiting because people as-
sume thats all you can do. Manage-
ment consultants are the opposite.
Theyre people who are very good
at what they do but they dont spe-
cialise in doing one thing in one in-
dustry.Its all about taking what you
learn and observe in one industry
to another because things are gen-
erally highly repeatable. More of-
ten than not the hugely successful
business turnaround stories come
simply from taking something that
works well in one industry and in-
troducing it into another.
Decisive and early
Hence,most of what a management
consultant will bring to a company
is observing how things are done,
looking at good behaviour and re-
placing the negative behaviour
with something that has worked
elsewhere. Inventing a new service
or product is almost unheard of,
Winter assures,but helping them to
This stimulus for growth and
innovation can only come about
when a management consultant
has made an assessment of the
board and unit leaders they are
working with.
To help a company grow,youve
got to be very canny at under-
standing people and making ac-
curate judgements about them,
Winter reveals.
You have to gure out where
peoples strengths and weaknesses
are, but crucially you have to estab-
lish who you can trust. You need to
gure out who is really backing the
process and who you can trust to
carry it through and keep on driv-
ing it once youre gone.
The benet for client compa-
nies is that once they have over-
come the understandable concern
of allowing in consultants to show
them how to do things better,they
are likely to have a more success-
ful company and they are more
likely to use management consul-
tants again.
The key, Winter maintains, is to
act early and be reassured when
making the decision that others in a
similar position have done so in the
past and will do so again. The big-
gest risk is acting late and allowing
rivals to steal a march on your busi-
ness and its customer base while
you ponticate on whether some-
thing needs to be done.
Management
consultants
have a long,
proven history
of being a
reliable source
for growth
Boosting
public bodies
If management consultants
have to get used to watching
someone else receive the
plaudits for transformation
in the private sector, then
public sector work only
deepens the requirement
not to expect positive
headlines and awards.
The crucial diference between the
two sectors is that, perhaps ironi-
cally, success in the private sec-
tor can appear very public while
in the public sector it is decidedly
private. Rather than concerning
growth, most current public sec-
tor engagements will be around
ef ciencies,points out Winter.
The public sector,particularlyin
the current time of austerity,is main-
lylooking for efficiencies, he says.
So a lot of the work is in the sort
of advances that wont really be
very visible outside of the organ-
isation. Of course, public authori-
ties arent like businesses: they
cant grow or export themselves as
theyre usually a local authority or
government department.
Winter believes that although
the public sector is scaling back
engagement with management
consultants, there is still much
young bright minds can ofer
public sector bodies.Ultimately,by
using management consultants
such departments can be assured
they have the benet of access to
the type of people that are unlike-
ly to consider a career in the civil
service but who can leave behind
valuable intellectual property.
SEAN HARGRAVE
info.uk@mediaplanet.com
UNDERSTAND
REASONS FOR
SUCCESS
3
STEP
realise that is what they need and
then assisting in its development
and execution is a common task.
Paul Winter
President,
Management Consulancies Association SEAN HARGRAVE
info.uk@mediaplanet.com
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Lifestyle | Health
DOES THE CLIO ECO
MEASURE UP TO THE REST
OF THE GREEN CROP?
FIND OUT IN MOTORING TOMORROW
31
FIT IN
THE CITY
BY LAURA WILLIAMS
FITNESS & DIET EXPERT
Top gifts for
gym fiends
W
hether youre trying to nudge a
loved one in a healthier direction,
or stuck for a gift for your fitness
fiend friend, these are the fitness
gizmos that would make my Christmas list.
The perfect stocking filler for the gym
bunny, the new SmartShake is no ordinary
shaker cup. With three different compart-
ments, you can store anything from a handful
of nuts to your keys in one section while sip-
ping your protein shake from another. Ace.
9.99, smartshake.co.uk.
Technogym describe their home cable and
pulley resistance system, Kinesis Personal, as
a piece of fitness equipment like no other. I
cant really argue with that. A flat, 3.5 square
metre station designed to accommodate 200
exercises, it comes with a hefty price tag
(6,877) but is a fine looking bit of kit. Finer
still if you have a budget that can stretch to
12,982 for a 24k gold leaf covering. Check it
out at technogym.com.
If youre stuck for a pressie for the person
who has everything, how about this for origi-
nal? Ellis Brighams Learn-to-Ice-Climb
voucher is just 50 and entitles the recipient
to a one-hour session of ice climbing at their
Covent Garden store (where theres an 8m ice
wall). Head www.vertical-chill.com
StepSuccess is no ordinary pedometer pro-
gramme not only does the activity monitor
(aka pedometer) give you an accurate calorie
burn (most pedometer-type devices respond
to a gentle shake so you can cheat), you also
have access to a huge online community and
apps galore with the 12-month subscription.
http://www.stepsuccess.com.
TRX are the market leaders in suspension
training and theyve just added the Rip
Trainer to their range, a piece of kit weighing
less than 2kg that enables you to increase
muscle strength, challenge your core and
perfect for the golfers among you or your
family boost your rotational power. For
more details go to www.trxtraining.com.
Visit www.laurawilliamsonline.co.uk or follow
me on twitter @laurafitness
Birchenall only looked about 70. That
means he cant have been more than -
what? Quickly I do the maths. Surely
not. That means he cant have been
more than about 45 when we were at
school, I say to Nick, incredulously.
I know. Scary, replies Nick. Im sure
Birch-Them-All looked about a hundred
back then. Even through a haze of chalk
dust. He looked younger at your party 25
years ago.
Maybe retirement works. Or maybe
he moisturises, I suggest.
Get the beers in Granddad, says
Nick pointedly, downing his remaining
half a pint.
The only people who were young at
the party were my kids, the waiting staff
and your girlfriend, I reply.
You mean the lovely Mirjana? Well,
Im just brushing up my Godparenting
skills with her, says Nick.
I choke on my beer. How did you
manage to swing that with Emma? I
was surprised she even invited you.
Oh, were best pals again. I took her
out for lunch and
What?
Just kidding, says Nick.
Look, we need I begin but Nick
interrupts. We stayed in actually. Had
oysters.
Ha-ha. We do need to talk business
Nick.
Im absolutely happy to renounce
Satan, says Nick, crossing his heart.
I dont mean Godparent business. I
mean your business. The one thats going
bust, I say, emphatically.
Its not going bust. Its a cash flow
issue.
Nick
Anyway, Caroline Davidson
I correct Nick. Davison. Theres no
second d.
The fragrant Caroline, whatever her
name is. I was talking to her at your
party and she suggested I We? That
we chat to her SME lending team. She
thinks they could do something for us.
So, am I a clever boy or what?
Im lost for words. And after a
moment, Let me get the beers in.
City Dad will continue next Tuesday.
For previous episodes go to cityam.com
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CITY DAD
EPISODE 40: BEER, BUSINESS AND BIRCH-THEM-ALL
Living in the city doesnt mean you cant enjoy the thrill
of extreme sports and a new bike track in
Tottenham just made it even easier, says Steve Dinneen
Pete Bowcock from
the "Old Skull Race
Team" sprints around
the Lordship Loop
track in Tottenham
Picture:
DaveMacPhotos
and without flying half way around the
world can head to the new Lordship
Loop mountain bike track in Tottenham.
The 391m course, which opened last
week, boasts rollers, berms, roller doubles
and step-up jumps to test your cycling acu-
men to the max.
The International Mountain Biking
Association-affiliated track is open all year
and is free for the public to use, although
some of the more difficult routes will be
beyond beginners. Those with a competi-
tive edge will also have the chance to enter
British Cycling supported races at the
course from next year, with all levels
catered for. If youre not quite up to racing
standard, local club The Trax runs classes
for 8-15 year-olds and are considering
adult courses in the new year.
After a few laps through the Tottenham
dirt, you may well start to dream of rat-
tling through the mean streets of Chile.
Just leave the suit at home.
DORKING (50 MINS FROM VICTORIA)
Dorking is host to a number of great moun-
tain-biking trails, including Pitch Hill, Holbury
Hill and Leith Hill to the south and Ranmore
Common and Box Hill to the north. Navigate
the stunning scenery and youll find enough
routes and jumps to keep you going for
months.
AYLESBURY (53 MINS FROM MARYLEBONE)
A veritable warren of routes lie in the hilly
Chilterns around Aylesbury and Reading.
Good spots include Aston Hill, Wendover and
Ashridge, where local cycling groups are
usually happy to let new-comers tag along.
Further afield towards Swindon is Ridgeway,
which is famous for its network of mountain
bike trails. The well-worn paths are ideal for
relative novices as well as hardcore adrena-
line junkies.
UNDER ONE HOUR AWAY
I
n Chile there is a downhill bike race
built through the middle of the city
of Valparaiso. If you have never seen
the footage, get your phone out and
watch the YouTube video. If you have no
signal, stop what you are doing and go to
the nearest computer. If youre in the
supermarket, abandon your basket; if
youre on the underground, get off at the
next stop.
The four and a half minute clip shows a
rider hurtling through insanely steep cob-
bled streets, flying down rows of stairs and
jumping through buildings. At one point
a stray dog almost meets its maker under
his tyres. At the finishing line, he looks
down and you realise he rode the course
wearing a business suit.
For adrenaline-seeking City workers,
this is an impossible dream; only a hand-
ful of riders in the world could finish the
race. Those wanting to recreate the experi-
ence in a less terrifying environment
Get your
adrenaline
fix without
leaving
London
HEAD SOMMELIER AND MANAGER OF
LUTYENS RESTAURANT
ANDREW CONNOR
QUAFFERS CORNER
n the great age of exploration, Portuguese
sailors would fill the holds of their ships
with the wines of Madeira and sail to the
New World. Like many wines of the era,
destined for export, they were fortified
grape spirit was added to improve their stabil-
ity and keeping properties.
As the ships crossed the wide oceans the
barrels of wine nestled in their bellies were
gradually heated by the tropical sunshine
and the wine inside began to cook. It is this
process of heating and the consequent oxi-
dised character of the wine that makes
Madeira so distinctive.
It also gives it the useful property that,
unlike other wines including other fortified
wines, a bottle of Madeira can be opened,
enjoyed, and the bottle can be left half fin-
ished on the shelf for months without dete-
riorating. In a sense, this is because the
wine has already spoiled: it goes to show
that the concept of a faulty wine can be
rather narrow and prescriptive.
In the world of fortified wines, there are
two paradigms; Sherry-style where the
wine is fermented to dryness (all the grape
sugars are converted to alcohol) before the
spirit is added and any sweetness is added
later, and Port-style where the addition of
spirit stops the fermentation leaving some
unfermented grape sugars remaining in the
wine. Madeira is generally made in the Port
fashion.
The traditional grape varieties of Madeira
(still used for the most premium wines) are
Sercial, Verdelho, Bual and Malmsey. These
correspond, handily enough, to styles of
increasing sweetness and richness, so a
Sercial is a light style suitable as an aperitif
where a Malmsey is a powerful and rich
wine that is the perfect finish to a big meal.
Cheaper, commercial, styles will be labelled
Dry, Medium Dry, Medium Sweet and
Sweet.
This year marks the 200th anniversary of
the founding of one of the great Madeira
houses, Blandys. Why not celebrate their
birthday with the Alvada five years old (a
contemporary blend of Bual and Malmsey,
available at Waitrose) or really push the
boat out, so to speak, with the Colheita Bual
1993 (available from Planet of the Grapes).
You dont need to finish the bottle right
away but Im certain you wont be able to
resist for long.
Follow Andrew on Twitter
@LutyensWine
Stuck for wine
this Xmas? Try a
Madeira my dear
FOOD & BOOZE NEWS
BY STEVE DINNEEN
KRUG TOASTS HAPPINESS WITH EXHIBITION
Krug today launches its Happiness exhibi-
tion at The Royal Academy of Arts, in
which it asked celebrities to create their
own version of happiness and donate it to
the exhibition. David Bailey, Vivienne
Westwood and Tony Blair are among those
to have contributed to the exhibition, which
will raise money for the The Royal Academy
Schools.
HARVEY NICHOLS REOPENS FIFTH FLOOR CAFE
Harvey Nichols Fifth Floor Caf has reopened
following its first major refurbishment in
twenty years. The Knightsbridge institution
now boasts a bigger, open plan space with an
interior created by EDGE Architecture +
Design alongside a new food and drink menu.
The firm says the new interior incorporates
elements of luxury, glamour and wit synony-
mous with the Harvey Nichols experience.
Alyn Williams at
The Westbury
37 Conduit Street W1S 2YF
Tel: 020 8283 5036
FOOD hhhhh
SERVICE hhhhh
ATMOSPHERE hhhii
Cost per person without wine: 65
A
lyn Williams, who was
head chef at Marcus
Wareing at The Berkeley
for four years, was sick of
being the bridesmaid. You could
tell hes been wearing white for
years.
Now he has his name above the
door at The Westburys flagship
restaurant but getting the job
youve always wanted isnt easy
just ask Gordon Brown. Hes
cooked for me once before
(Williams, not Brown thats a
story for another day), at a chefs
table at The Berkeley: a glutinous
12 course affair, which would take
some beating.
So much beating, in fact, that it
didnt but it was a pretty even
contest, which is still a ringing
endorsement. We ordered two tast-
ing menus one vegetarian and
not one dish fell flat. The fourme
dAmbert gougers (bread-balls
filled with cheese) were so light I
Alyn Williams debut sparkles
The Westburys
new restaurant
doesnt disappoint
Lifestyle
32 CITYA.M. 13 DECEMBER 2011
showing off. The pace was flaw-
less just enough time to remi-
nisce about the passing of one
before another arrived. Some
restaurants never nail timing
like that: Alyn Williams seems to
have done it in just two weeks.
For the main course the
only choice on the set menu,
although the chef will vary
the other options it if you ask
him nicely I took myself by
surprise, inexplicably order-
ing the Cotswold chicken
with smoked egg and
charred leek over the
Devon beef sirloin. I was duly
rewarded. Williams painted a
dusky, Constable-esque land-
scape on my plate, with murky
greens lurking around the edges
of a globular terracotta egg yolk,
which oozed satisfyingly when
lanced with a fork. I would love
to tell you how good the gnocchi
was, but it had disappeared
from my guests plate before I
got a chance to taste it. She
assures me it was very good.
Order the cheese and youll be
treated to the sight of two wait-
ers heaving a gigantic bureau of
cheese less a trolley than a
wagon. Even The Chief from One
Flew Over the Cuckoos Nest
would have failed to sling this
thing through a window,
although if they had been order-
ing cheese boards it would have
been a very different movie.
The dessert tiramisu with
nutella brioche and limoncello
slush struggled to compete
with the ferocious aftertaste of
the cheese, proving to be the
weakest link in an excellent
meal.
Given the quality of the food,
it seems churlish to pick up on
the dcor. So here we go. There is
a chapter in Bret Easton Ellis
American Psycho in which
Patrick Bateman, at some point
between murdering prostitutes
and exchanging embossed busi-
ness cards, meets his younger
brother Sean for lunch. In an
unexpected flourish, the
Westbury has plucked Alyn
Williams (the restaurant, not
the chef) from my mental pic-
ture of this scene. Enormous,
glowing glass bowls loom over
the booths, jarring with the
dark wood paneling. The carpet
is worse: it sparkles. At first
glance it looks like a gigantic
hen party has trouped through
the restaurant, shedding tinsel
and broken glass and tears in its
wake. The seats hailing from a
more somber ilk seem reluc-
tant to stand in it.
The overall effect is some-
thing akin to a 1980s nightclub
not necessarily unpleasant
but verging alarmingly close to
gauche. Some of the artistic
license is better rewarded: one
wall features a bank of back-lit
terrariums, self contained eco-
systems filled with weeds and
herbs found in Williams food.
From a distance they look like
tiny aquariums, which I sup-
pose fits with the nightclub
ambiance.
But dcor is dcor and food is
food. Williams is a master of his
game; his subtle flavours seem
effortless; the sommeliers wine
recommendations were spot on
(especially the 2008 Sancerre
Rouge). And, while 55 for a tast-
ing menu is hardly pocket-
change in these troubled
economic times, neither is it
unreasonable.
Williams is finally the blush-
ing bride; take along some con-
fetti to celebrate at very least
itll blend in with the carpet.
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had to stand on the table and
chase them around the ceiling.
The cauliflower panna cotta
with acorn, served in a martini
glass, was almost spectacular,
although it disappeared a little
too quickly to be fully appreci-
ated. The Dorset snails
slithered down a treat,
far exceeding the
(admittedly fairly
low) expectations
set by the menu,
which promised
snails/soil/weeds.
I could list every
starter but it
would seem like
The carpet sparkles
like a hen party has
trouped through,
shedding tinsel and
broken glass and
tears in its wake
Below: Alyn Williams
WORDS BY STEVE DINNEEN
T
E
R
R
E
S
T
R
I
A
L
DEATH IN PARADISE
BBC1, 9PM
Dwayne is in high spirits after meeting
a new woman on a night out, but his
joy is cut short when she is found dead
the following morning.
MONEY
BBC2, 9PM
Exploring how couples and families
manage to live on 40,000, the
average British income for a household
with two working adults.
THIS IS ENGLAND 88
CHANNEL 4, 10PM
New series. Sequel focusing on the
relationship between Lol, now a single
mother haunted by the events of the
last series, and her soulmate Woody.
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmLive Scottish Premier
League Football 10pmSuper Six
Final Countdown 10.30pm
Revista De La Liga 11.30pm
Football Asia 12amScottish
Premier League Football 1.30am
Revista De La Liga 2.30amSuper
Six Final Countdown 3amFootball
Asia 3.30amScottish Premier
League Football 5am-6amRevista
De La Liga
SKY SPORTS 2
6.30pmSquash 7.30pmSuper
Six Final Countdown 8pmBritish
Basketball 10pmSports Unlimited
11pmTen Pin Bowling 12am
British Basketball 2amBadminton
3am-3.30amISAF World Sailing
Championship
SKY SPORTS 3
7pmBadminton 8pmTest Cricket
10pmGolfing World 11pmLadies
European Tour Golf 12amGolf
12.30amBadminton 1.30amTest
Cricket 3.30amLadies European
Tour Golf 4.30amGolf 5am-6am
Ten Pin Bowling
BRITISH EUROSPORT
7pmBoxing 10pmGT Academy:
Road to Dubai 10.15pmWorld
Touring Car Championship
11.15pmIntercontinental Rally
Challenge 12.15am-12.45am
Cross-Country Skiing
ESPN
7pmLive FA Cup Football
10.15pmSerie A 12amESPN
Press Pass 12.30amEredivisie
Review Show1.30amUFC
4.30amPlanet Speed 5amSerie
A Rivals 5.30am-6amFIS
Alpine Ski World Cup Report
SKY LIVING
7pmCriminal Minds 8pm
Supersize Kids 9pmAmericas
Next Top Model 10pmCriminal
Minds 11pmBones 12amJerry
Bruckheimers Chase 1amCSI:
Crime Scene Investigation
2.40amBones 3.30amCSI:
Miami 4.20amCSI: Miami
5.10am-6amJerry Springer
BBC THREE
7pmTotal Wipeout: The Final
8pmGlamour Models, Mum and
Me 9pmDont Tell the Bride:
Christmas Revenge 10pm
EastEnders 10.30pmHim & Her
11pmFamily Guy 11.45pm
American Dad! 12.30amDont Tell
the Bride: Christmas Revenge
1.30amHim & Her 2amGlamour
Models, Mum and Me 3amThe
Real Hustle: New Recruits 3.30am
Skin Deep: The Business of Beauty
4am-5amTourettes: I Swear I
Can Sing
E4
7pmHollyoaks 7.30pmHow
I Met Your Mother 8pm
Shipwrecked: The Island 9pm
Rude Tube: Ultimate Champions
10pmTool Academy 11.05pm
PhoneShop 11.40pmThe IT
Crowd 12.10amThe Big Bang
Theory 1.05amScrubs 1.55am
How I Met Your Mother 2.20am
PhoneShop 2.45amThe IT Crowd
3.10amGreek 3.55amRules of
Engagement 4.15amWildfire
5am-6amSwitched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmAmerican Pickers 9pm
Cash Cowboys 10pmSeeking
Salvage 11pmAncient Aliens
12amDecoding the Past 1am
Seeking Salvage 2amCash
Cowboys 3amHeir Hunters 4am
America: The Story of the US
5am-6amAncient Discoveries
DISCOVERY
8pmWheeler Dealers Revisited
9pmCoal 10pmSwamp Loggers
11pmIce Pilots 12amBear
Grylls: Born Survivor 1am
Coal 2amSwamp Loggers
3amDeadliest Catch 4.40am
Moon Machines 5.30am-6am
How Its Made
DISCOVERY HOME &
HEALTH
7pm18 Kids and Counting 8pm
Supernanny 9pmMystery
Diagnosis 10pmBaby ER 11pm
My 40-Year-Old Child 12am
Mystery Diagnosis 1amBaby
ER 2amMy 40-Year-Old Child
3amSupernanny 4amLabour
and Delivery 5am-6amBringing
Home Baby
SKY1
8pmThe Great Treehouse
Challenge 9pmInside Gatwick
10pmFILMA Knights Tale 2001.
12.35am35mm1.05amBig
Trouble in Thailand 1.55am
Armed and Dangerous: Ultimate
Forces 2.45amMental 4.20am
The Man Who H ad Minutes to
Live 5.10am-6amBill Baileys
Birdwatching Bonanza
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
7pmThe One Show
7.30pmEastEnders: BBC News
8pmHolby City
9pmCHOICE Death in
Paradise
10pmBBC News
10.25pmRegional News;
National Lottery Update
10.35pmImagine: Books The
Last Chapter? 11.40pmFILM
Heavenly Creatures 1994. 1.15am
Weatherview1.20amSign Zone:
Frozen Planet 2.20amSign Zone:
The Story of Ireland 3.20am
MasterChef: The Professionals
4.20am-6amBBC News
6pmCelebrity Eggheads
6.30pmStrictly Come Dancing
It Takes Two
7pmVictorian Farm Christmas:
The farmers celebrate the
festive season in Victorian
style.
8pmMasterChef: The
Professionals
9pmCHOICE Money
10pmLifes Too Short
10.30pmNewsnight: Weather
11.20pmLeonardo: Biography
of Leonardo da Vinci.
12.20amThe Company
1.55amBBC News
4.20am-6amClose
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmThe Adventurers
Guide to Britain
8pmHigh Stakes
9pmMy Childs Not Perfect
10pmITV News at Ten
10.30pmLondon News
10.35pmFILMRumor Has It:
Romantic comedy, starring
Jennifer Aniston and Kevin
Costner. 2005.
12.20amThe Zone; ITV News
Headlines
2.55amKojak 3.50am-5.30am
ITV Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmThe Food Hospital
9pmMy Big Fat Gypsy
Christmas
10pmCHOICE This Is England 88
11.10pmRandom Acts 11.15pm
The Joy of Teen Sex 12.15am
UK & Ireland Poker Tour 1.15am
Sailing 1.40amOffshore Academy
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17 18 19 20 21 22
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16 11
6 14
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12 13
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21 9
28 30
4 5 10
29 12
10 3
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45
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21
6
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8
4
24
13
45 10
7
11
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 Fundamental (5)
4 Destined (5)
7 Complexion (3)
8 Sufuse with
colour (5)
9 Cause to move
forward with
force (5)
10 One-hundredth
of a yen (3)
11 Machine used for
printing (5)
14 Concise in manner (5)
17 Pulse vegetables (5)
20 Acute pain (5)
23 Animal kept for
companionship (3)
24 On your own (5)
25 Make a rhythmic
sound (5)
26 Alias (inits) (3)
27 Very small spot (5)
28 Plant exudation (5)
DOWN
1 Barrage balloon (5)
2 Animal prized
for its fur (5)
3 Board game (5)
4 Deceptive move (5)
5 Narrow to a point (5)
6 Dig deeply into (5)
12 Perennial herb with
grey-green bitter-
tasting leaves (3)
13 Earths nearest star (3)
15 Hens produce (3)
16 Immoral act (3)
17 Troublesome children (5)
18 Roused from slumber (5)
19 Talk (5)
20 Essential oil or
perfume obtained
from owers (5)
21 Fragrant rootstock
of various irises (5)
22 Country, capital
Sanaa (5)
T
A
I
E
P T
G
S
H
4
4
4
O C L O C K D L
V U I M P E D E
E L A T E S F V
R L S P L I C E
S T E A M U A R
S W A G M A N
A C C A N T I C
R E A M E R T E
M P A L L I E D
E V E L Y N E A
D E T E R R O R
9 8 4 7 9 2
8 4 2 1 6 5 3
3 2 1 7 6 4 8 9
7 5 8 5 1 5 2
3 5 2 1 7 8
6 8 2 7 4 3 1 9 5
7 9 9 8 6 3
1 7 3 9 5 1 8
2 6 1 4 3 8 6 9
2 8 1 4 9 3 5
8 9 1 7 2 3
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
SLAVERING
Lifestyle | TV&Games
33 CITYA.M. 13 DECEMBER 2011
Sport
34
ENGLANDS iconic World Cup win-
ning fly-half Jonny Wilkinson yester-
day announced his retirement from
international rugby.
The 32-year-old, arguably Englands
greatest ever player, won 91 caps over
the course of an injury-plagued
career and also represented the
British and Irish Lions on two tours.
Wilkinson will forever be remem-
bered as the man who kicked
England to glory in Australia eight
years ago, but with youngsters such
as Toby Flood and Owen Farrell gun-
ning for his place, the Toulon No10
has decided the time is right to bow
out.
In a statement, Wilkinson said: I
would like to take this opportunity to
announce my retirement from inter-
national rugby.
To do so fills me with great sad-
ness, but I know I have been
blessed in so many ways to
have experienced what I
have with the England
rugby team.
Wilkinson retires sec-
ond on the all-time Test
scoring list with 1,246
points 1,179 of those for
England placing him
just behind New
Zealands Dan Carter. His
record for his country includes six
tries, 162 conversions, 239 penalties
and a record 36 drop
goals.
To say I have
played through
four World Cups,
two Lions tours,
91 international
games and a
ridiculous num-
ber of injuries
and other set-
backs gives
me an incred-
ibly special
feeling of ful-
fillment, he
added.
I will continue to focus ever hard-
er on my goal of being the very best I
can be with Toulon Rugby Club and
continue to embrace and enjoy wher-
ever that path takes me.
Tributes to Wilkinson, hailed as the
ultimate professional, poured in last
night including from Englands inter-
im head coach Stuart Lancaster and
former team-mate Lewis Moody, who
announced his own retirement from
international rugby in October.
Im humbled to have played along-
side him, said Moody. Im saddened
but his contribution over the years,
his work ethic and commitment, has
been immense. He put everything
into what he did. It was incredible to
watch him train and perform.
End of the road for England legend Wilkinson
BY JAMES GOLDMAN
RUGBY UNION
2
1
CHELSEA
MANCHESTER CITY
Man City 15 12 2 1 49 15 38
Man United 15 11 3 1 35 14 36
Chelsea 15 10 1 4 33 18 31
Tottenham 14 10 1 3 30 18 31
Arsenal 15 9 2 4 31 23 29
Liverpool 15 7 5 3 18 13 26
TOP SIX
TEAM PLD W D L F A PTS
ARSENAL chiefs are planning to take
the club into new territory next sum-
mer by embarking on a pre-season
tour to Africa.
The Gunners are in talks about
playing a number of matches in
Nigeria next summer, before the
2012-13 campaign gets underway.
Other tours are also being dis-
cussed and it is understood Arsenal
could schedule a repeat of last sum-
mers trip to the Far East.
Arsenal have more scope for play-
ing abroad next year as they have can-
celled the Emirates Cup, their
traditional pre-season tournament,
because of the London 2012 Olympics.
The club has a particularly large
following in Africa, thanks to stars
such as Cameroons Alex Song,
Ivorian Gervinho and Moroccos
Marouane Chamakh.
Profile-raising and often lucrative,
foreign tours have become increasing-
ly common among the Premier
Leagues elite, with Manchester
United and Chelsea visiting Asia and
the United States in recent years.
Arsenal, meanwhile, have lost
defender Andre Santos for three
months after doctors advised the
Brazilian needs surgery on his ankle
ligament injury.
Arsenal to conquer new frontier
with pre-season tour of Nigeria
Results
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email sport@cityam.com
35
SPORT | IN BRIEF
Kauto Star set for King George
HORSE RACING: Four-time winner Kauto
Star has been entered for the King
George VI Chase at Kempton Park on
Boxing Day by his trainer Paul Nicholls.
The 11-year-old defied the critics by
beating Long Run to win the Betfair
Chase at Haydock three weeks ago.
Hoy caught in Foy crossfire
FOOTBALL: British cyclist Sir Chris Hoy
has been accidentally targeted on
Twitter by Tottenham fans angry with
referee Chris Foy following Sundays
defeat at Stoke. Foy made several con-
troversial calls and a number of Spurs
fans have mistakenly written to Olympic
champion Hoy expressing their displeas-
ure. Getting some rather amusing grief
from Spurs fans! Hoy said on Twitter.
Just for the record 1) I dont need glass-
es and 2) I do not lead a double life as a
ref. Thats Chris Foy.
KEY MOMENT
Manchester Citys early dominance
was hardly reflected by a 1-0 scoreline
handed to them by Mario Balotellis
second minute strike and a famous
Chelsea comeback may never have
materialised had referee Mark
Clattenburg spotted Jose Bosingwas
trip on David Silva inside the penalty
area in the 14th minute. Only after
super-slow-motion replays was it
apparent that contact had been
made, but the official could not have
been better placed to see it.
TALKING POINT
Despite making a record-breaking start to the season, should Manchester United win
at QPR in Sundays early kick-off, City will start at home to Arsenal later that after-
noon from the an all too familiar position, beneath their local rivals. Suddenly, the
Premier League title race has taken on a totally different complexion and Citys reac-
tion to having their authority questioned will provide fascinating viewing. Their
resolve and discipline was tested last night, as it was in Naples last month, and on
both occasions they have been found wanting. Discipline and control was required in
the face of a Chelsea storm instead experienced campaigners like Gael Clichy and
Yaya Toure lost their heads. The signs for the chasing pack are encouraging.
MATCH ANALYSIS
BY JAMES GOLDMAN
GAME STATS
CHELSEA 2 - 1 MAN CITY
7 ATTEMPTS ON TARGET 4
6 ATTEMPTS OFF TARGET 4
5 CORNERS 1
58% POSSESSION 42%
4 YELLOW CARDS 3
0 RED CARDS 1
0 OFFSIDES 1
7 FOULS AGAINST 11
11 FOULS CONCEDED 7
82% PASS COMPLETION 84%
DUGOUT VIEW
After the sending off the game
was totally changed. We did a big
performance in the first half, we
played very well and should have
scored two or three goals. There was
a big penalty; the referee was very
close but didnt see. We didn't score
other goals in the first half when we
had the chance. It doesnt change
anything for us. We knew before we
could lose one game. We lost today
but the season is very long.
Man City boss, Roberto Mancini
BY FRANK DALLERES
FOOTBALL
Shanghai eye
Drogba and
Anelka pairing
AMBITIOUS Chinese outfit
Shanghai Shenhua want to
reunite Nicolas Anelka with his
old Chelsea strike partner Didier
Drogba.
Anelka, 32, will move to the Far
East in January on a two-year con-
tract believed to be worth 8m a
year, it was confirmed yesterday.
But, not content with just one
former Stamford Bridge frontman,
the Chinese Super League club
have also approached Drogba.
Like Anelka, Drogbas current
contract expires in the summer,
meaning he is free to discuss
terms with other clubs next
month.
Shanghai Shenhua director
Zhou Jun said: Drogba is an excel-
lent player. We got in touch with
him two weeks ago. From our
clubs perspective, we have this to
say: if he is willing to come, we will
definitely welcome him.
Drogbas recent return to form
has increased the 33-year-olds
hopes of being offered a new two-
year contract in west London.
However, his advancing years
raise questions about where he fits
into manager Andre Villas-Boass
plans to overhaul an aging squad.
Anelka is likely to be followed to
Shangahi by former Fulham and
Monaco coach Jean Tigana, whom
Zhou confirmed had agreed a deal
to take charge.
Anelka will move to China in January, it
was confirmed yesterday Picture: PA
FOOTBALL
for title
Lampard had
missed his last
two penalties
Picture: PA