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Tobin tax
could cost
EU billions
A EUROPEAN Tobin Tax would knock
GDP and end up costing governments
billions of euros in lost revenue,
accounting firm Ernst &Young will
argue today yet France looks set to
press ahead with the tax without wait-
ing for pan-European agreement.
The European Commissions esti-
mation that a financial transactions
tax (known as a Tobin Tax) would
raise 37bn (30.5bn) is based on
overly optimistic assumptions, Ernst
& Young says today.
The Commission has acknowl-
edged that it did not address the
impact of lower GDP on revenue col-
lection from other taxes, states eco-
nomic adviser Marie Diron. Even
when modelled against the best case
scenario this incurs a 39bn loss,
making the net impact on overall tax
revenues a loss of 2bn.
Using the Commissions worst case
scenario, involving a 1.76 per cent hit
to GDP, the tax could result in a net
loss to public finances of 116bn, the
firm calculates.
Yet French politicians last night
pledged to go ahead with tabling the
tax in parliament, as soon as next
President Nicolas Sarkozy said late
last week that France would not wait
for European Union partners to agree
to a Tobin tax across the continent.
UK prime minister David Cameron
said yesterday he would veto a
Europe-wide tax unless it was adopt-
ed globally.

The PM, centre, wants to avoid pay deals for failure for executives like Manny Fontenla-Novoa, above left, the former chief executive of Thomas
Cook. JP Garnier, above right, a former chief executive of GlaxoSmithKline, suffered the biggest revolt over pay in the UK. Pics: Rex, Reuters
DAVID Cameron is set to give share-
holders new powers to veto boardroom
pay at Britains top public companies.
Yesterday the prime minister hit out
at excessive pay which made peo-
ples blood boil and said investors
should be given a legally binding vote,
beyond their current advisory role, on
the pay packages and pay-offs of FTSE
100 directors.
He also called for the reform of
remuneration committees to stop
crony capitalism in which directors
who sit on each others boards hand
out pay rises to one another. Cameron
did not name individuals but was
speaking just days after it emerged
that former Thomas Cook chief execu-
tive Manny Fontenla-Novoa, who quit
after a series of profit warnings, has
been awarded a 1.17m pay-off.
The coalitions reforms could be
included in the Queens Speech in the
spring, Cameron added, but ministers
face a struggle to convince employers
organisations, which believe changes
will be difficult to implement.
John Cridland, director-general of
the CBI, said: Prevention of the prob-
lem has to be the answer. Binding
shareholder votes would simply be
shutting the stable door after the
horse has bolted, as shareholders
would only be voting after the prob-
lem has happened.
POLITICS Issue 1,544 Monday 9 January 2012 FREE

The Institute of Directors said it sup-
ported moderation in top board-
room pay and binding shareholder
votes on pay policies but said it is not
clear what the vote will be on.
Sir Martin Sorrell, head of WPP
which moved its base to Dublin in
protest at Britains tax regime
offered cautious backing for the plans,
telling City A.M.: As long as we remain
able to be internationally competitive
as a result, well be fine.
Cameron has distanced himself,
however, from more radical measures
proposed by Business Secretary Vince
Cable, raising the prospect of another
coalition split over the City. Number
10 is cool on the plans to make compa-
nies publish pay ratios, which would
show the difference between the
salary of the chief executive and the
average worker and which could
embarrass banks and retailers.
Cable is also likely to have to drop
plans to give workers groups a seat on
pay committees because junior staff
do not hold the same legal responsibil-
ities as directors. The findings of a con-
sultation are expected this month.
The largest revolt at a British public
company came in 2003 when more
than half of GlaxoSmithKline share-
holders voted against a plans to award
22m to chief executive JP Garnier in
the event that he lost his job.
Certified Distribution
31/10/11 till 27/11/11 is 100,007
David Cameron has left open the
door to Britain giving billions of
pounds of new support to the
International Monetary Fund and
indirectly to ailing members of the
Eurozone in a move likely to infuri-
ate eurosceptic MPs in his own con-
servative party. Extra British support
would be welcomed by France and
Germany but would be subject to
fraught parliamentary vote; the last
time he sought MPs permission to
increase Britains IMF contributions,
30 MPs from his own party joined
forces with Labour to oppose it.
Holders of Greek bonds are set to
accept higher losses as the con-
tentious negotiations over writing
down Athens debt burden come to a
head in the next week. People
involved with the discussions about
so-called private sector involvement,
or PSI, said that bondholders were
likely to suffer a haircut of 55-60 per
cent, more than the 50 per cent origi-
nally agreed in October.
The head of Royal Bank of Scotlands
embattled investment bank is in line
to receive a special bonus this year of
more than 4m, an award that will be
contentious given the governments
vow to crack down on excessive execu-
tive pay.
Axa, one of Europes largest insurers,
has raised a fund that will invest up
to 2.5bn (2.06bn) towards the devel-
opment of offices and shopping cen-
tres across the continent, in an effort
to exploit the gap left by the retreat of
banks and other debt providers from
property lending since the crash.
More than 31bn of taxpayers money
has been wasted across government
departments in the past two years,
according to an audit by The Times.
The scale of the inefficiency is more
than twice the extra 15bn of cuts for
2015 onwards announced by George
Osborne, the Chancellor, in
November and more than a third of
the 81bn cuts needed in this
Rolls-Royce Motor Cars has defied the
downturn to smash its record for lux-
ury car sales. The popularity of the
baby Rolls led to 3,538 sales last
year, the best performance in its 106
years. The previous best was set in
1978, the heyday of the Silver Shadow
The Prime Minister is to abandon
plans to scrap the 50p rate of income
tax amid increasing pressure from
business leaders and backbench
Tories, The Daily Telegraph can dis-
close. The Prime Minister and George
Osborne are understood to have con-
cluded that abolishing the levy is
politically impossible in the near
future amid fears that they will be
accused of pandering to the wealthy.
Motorists are facing record diesel
prices at the pumps after instability in
the Persian Gulf led to an unprece-
dented rise in wholesale costs. The
average price of diesel on UK fore-
courts hit 141p a litre over the week-
end. Experts predict that by the end of
January the cost of diesel will top the
143p a litre peak it reached last year.
A dismal year means Wall Street is
about to take a big hit to its wallet. As
banks prepare to report fourth-quar-
ter results and make final bonus deci-
sions for 2011, total compensation is
likely to be the lowest since 2008,
when the financial crisis destroyed
some firms and left many survivors
on government life support.
Sergio Marchionne plans to stay at
the helm of Chrysler Group and Fiat
until at least 2015, but maybe not
much longer. I aint moving until
after 2015, the chief executive of
Chrysler and Fiat said during a recent
interview here at Chryslers sprawl-
ing headquarters north of Detroit.
You need to have some kind of clari-
ty around succession.
Cameron right to back shareholders
SO David Cameron believes in capital-
ism after all. His proposal to give share-
holders a binding vote on the pay of
their CEOs is sound. Companies are
owned by shareholders, not directors,
government, workers or busybodies; it
is shareholders job to be involved in
key decisions and not become absen-
tee landlords. Rewards for failure in
business are less frequent that many
believe (and certainly rarer than in pol-
itics); but they do exist; are a scandal
and must be rooted out. The best way
to achieve that and to protect the
absolutely essential freedom of con-
tract is to give investors more power,
thus further nudging shareholder psy-
chology in an activist direction. So far,
rebels have rarely vanquished boards
after all, why bother if your vote can be
ignored but this will most likely
change under the new rules. Foreign
investors are often even more active
than UK ones.
In a previous editorial I recommend-
ed five reforms. My first was that there
should be annual, binding sharehold-
er votes on board pay; this is being
adopted by the government.
Companies will have to make offers
contingent on shareholder approval,
concentrating minds. My second pro-
posal was that pay should be simpli-
fied, with a single figure used for total
compensation. Again, it appears that
this is being adopted. But the other
three should also be considered.
Pay ought to be linked closely to
shareholder value and should go down
as well as up; fixed base pay ought to
be kept to a minimum. This is some-
thing shareholders should insist on;
there is no need for legislation. The
fourth change required is that we need
simple contracts that allow CEOs to be
fired for breaching performance tar-
gets without a pay-off (which means
changing the law on unfair dis-
missals). Fifth, remuneration commit-
tees ought to have to explain to
shareholders once a year how they are
getting value for money from execu-
tives their incentive should be to
reduce pay to save shareholders
money. This would smash cronyism,
whereby directors (exec or non-exec)
believe that they all have an interest in
pushing up wages, partly because they
serve on multiple boards. Specialist
remuneration directors may emerge;
firms that want to signal they are seri-
ous about value-creation would
appoint them to hold execs to account.
Rewards for failure must be rooted
out, owners empowered and boards
made to represent shareholder inter-
ests. But this should not be confused
with waging war on genuine success.
It is wrong to automatically equate
high pay with excessive pay (some-
thing even Cameron too often does);
without the context, one cannot know
whether it represents a realistic mar-
ket price or includes a sensible reward
for exceptional performance, or
whether it is too high a price to pay or
a reward for failure. The current
debate, infused by envy, is failing to
make the right distinctions and is part-
ly a cover for those who want to return
to an egalitarian, high tax society of
the kind we saw in the 1970s and
which almost destroyed the economy.
A properly determined market wage
is neither fair nor unfair: prices are
determined by supply and demand,
impersonal, amoral forces. In moral
terms, it is wrong for bad CEOs who
destroy firms the likes of Fred
Goodwin to walk away with millions
they should get nothing but it isnt
wrong for those who create huge value
to be paid a lot by their willing owners.
Roll on shareholder power.
Follow me on Twitter: @allisterheath
LLOYDS boss Antnio Horta-Osrio
will return to Gresham Street today
for his first day of work since going
on sick leave in November due to
It is understood he will spend the
first week meeting with executives in
order to talk over their roles and
revamp his management style to share
more of the burden with others.
That will involve, for example, cut-
ting down the number of people who
report directly to him, which is cur-
rently at 13. And he is also likely to
spend less time getting hold of and
examining highly detailed informa-
tion like daily sales figures from every
Despite his full schedule, however,
he will take five minutes out of his
morning for a photo opportunity to
demonstrate his bushy-tailed state,
in the words of chairman Sir Win
Bischoff. He will also come in to work
at a normal time, said a source, in
contrast to his 6am start on his first
day in the job last year.

Lloyds boss back at work

Lloyds chief executive Antnio Horta-Osrio returns from sick leave today
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Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Gavin Billenness
Pictures Alice Hepple
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
Keeping tabs on directors pay
Current system
Each FTSE-listed company has a remunera-
tion committee, which is made up of non-
executive directors. These people are often
City veterans who have held director-level
positions at other public firms and are
hired to provide advice to the board.
The committee decides on a salary, bonus
and pension package for each director.
All shareholders are invited to take part in
a non-binding vote on the salary and bene-
fits packages for directors. It is rare, how-
ever, for the proportion of shareholders
opposing pay packages to reach 50 per
cent while many ordinary shareholders do
not take part in the vote.
The average vote against remuneration
reports is 5.6 per cent, according to a
report published last year by shareholder
advisory group PIRC, based on a sample of
500 company meetings.
What next?
Shareholders are to be given binding votes
on the pay packages awarded to the direc-
tors of FTSE-listed companies.
The timing of the votes will be left to indi-
vidual companies, Downing Street sources
indicated yesterday.
The coalition wants to see greater trans-
parency over executive pay but is unlikely
to back plans from Vince Cable, the
Business Secretary, to force public compa-
nies to publish pay ratios showing the dif-
ference between the earnings of the chief
executive and the average worker.
Yesterday David Cameron said it made
peoples blood boil that the average pay
of FTSE executives went up fourfold
between 1998 and 2010.
Cable is due to publish the findings of a
consultation on executive pay later this
month. Cameron said proposals may be set
out in the Queens Speech in the spring but
stopped short of providing a guarantee.
US threatens Iran over Strait
The US made an overt threat to take
military action if Iran carries through
with its threat to blockade the Strait of
Hormuz, a major thoroughfare for trans-
port of global oil supplies. Defence secre-
tary Leon Panetta said: We made very
clear that the United States will not tol-
erate the blocking of the Strait of
Hormuz... Thats another red line for us
and that we will respond to them. He
added that even if Tehran manages to
close it, we would take action and
reopen the Strait
Scottish independence decision
The government will announce soon
whether a Scottish vote for independ-
ence from Britain would be legally bind-
ing, Prime Minister David Cameron said
yesterday. Cameron told the BBC uncer-
tainty over the timing, result and legal
implications of the referendum planned
by the party in power in Scotland were
damaging the Scottish economy. The
pro-independence Scottish National
Party (SNP) won a majority in
Scotlands devolved parliament in an
election and pledged to hold a referen-
dum on independence within five years.
TRANSPORT secretary Justine
Greening could make a decision as
soon as tomorrow regarding HS2, the
proposed high speed railway linking
London with the north which has
been dividing the UK.
The 32bn project would see a 100-
mile connection created by 2026
between London and Birmingham,
cutting the journey time down to 49
minutes, with extensions to Leeds and
Manchester added by 2033 in a bid to
facilitate business across the country
and increase capacity along the route.
However, more than 30 MPs and 18
local authorities have spoken out
against the railway due to environ-
mental concerns and claims that it
would disrupt communities along the
planned route and provide an unsub-
stantiated burden to taxpayers.
Adam Marshall, director of policy at
the British Chambers of Commerce,
said in favour of the proposal:
Business leaders up and down the
country want ministers to make a
rock-solid commitment to build a
national high-speed rail network.
HS2 fundamentally is about a radi-
cal increase in rail capacity, and with-
out it overcrowding will get worse,
costs will rise, and delays will become
even more common.
He added, Britain cannot continue
to 'make do and mend' when it comes
to infrastructure, because our global
competitiveness is at stake.
The UK ranked 33rd for quality of
overall infrastructure in 2011 accord-
ing to the World Economic Forum.
However, Next chief executive Lord
Simon Wolfson told the transport
committee in July that HS2 is not good
value for money when 90 per cent of
passenger miles in the UK are by road.
Matthew Sinclair, director of the
Taxpayers Alliance, said yesterday:
The project would cost every British
family 1000 and only benefit a small
minority. There has to be a question
whether this is fair while the business
case is quite weak.
Welsh secretary Cheryl Gillan is
reportedly prepared to resign from the
cabinet if the proposed railway, which
would bisect her constituency, is given
the green light.
High speed
railway plans
split nation
BANKS will be allowed to run down
their reserves of liquid assets below
the minimum during a period of
stress, the committee in charge of set-
ting the Basel III rules has decided.
In an update last night, the Basel
Committee said that it would provide
specific criteria for when and how
banks would be allowed to do so.
It said that in a crisis, banks would
be expected to use their pool of liquid
assets, thereby temporarily falling
below the minimum requirement.
There is a fierce debate among UK reg-
ulators as to whether banks should be
allowed to run down their capital and
liquidity reserves.
And in a move that will be wel-
comed by lenders, the committee hint-
ed that it could let a wider range of
assets count towards the requirement,
addressing specific concerns regard-
ing the pool of high-quality liquid
Basel III to loosen
its liquidity rules

ANALYSIS l The high-speed rail link's route through the Tory heartlands
Sutton Coldfield
Milton Keynes
High Wycombe
Preferred route for High Speed Rail
North Oxfordshire
Tony Baldry
Milton Keynes North
Mark Lancaster
Chesham & Amersham
Cheryl Gillian
David Lidington
Kenilworth & Southam
Jeremy Wright
North Warwickshire
& Bedworth
Jeremy Wright

Transport secretary
Justine Greening
could agree to the
railway plans as
early as tomorrow
Picture: PA
Welsh Secretary
Cheryl Gillan
could resign if
the proposal is
given go-ahead
Picture: PA
FINANCIAL services firms experi-
enced an unexpected acceleration in
business volumes in the final three
months of 2011, but remain pes-
simistic about future conditions,
according to the Confederation of
British Industrys (CBI) survey of the
sector, published today.
Business activity rose for the sev-
enth consecutive quarter, while
incomes rose for the whole year.
However employment levels
declined and, thanks to the ongoing
Eurozone crisis, marketing spending
is set to fall.
The CBI found a net balance of 29
per cent experienced growing busi-
ness volumes in the fourth quarter,
up from 10 per cent in the previous
quarter. The strong growth defied
expectations previously that a net bal-
ance of just five per cent would grow.
A net balance of 14 per cent experi-
enced profitability growth, barely
changed from 16 per cent in the pre-
vious quarter.
However, volumes growth is expect-
ed to slow with a net balance of 19
per cent predicting expansion, and a
balance of four per cent expecting
profitability to decline.
Business sentiment was already
low with a net balance of 20 per cent
feeling pessimistic a score which
worsened again to 24 per cent.
Such pessimism is hitting spending
plans, with net balances of 10 per
cent cutting back on marketing budg-
ets and 29 per cent slashing capital
expenditure on land and buildings.
Uncertainty over demand and busi-
ness prospects and expected low
returns on proposed investments are
the biggest reasons for such cuts.
The gloomy outlook also hit jobs
a net balance of 45 per cent of banks
and 17 per cent of insurers cut jobs.
Banks have also shown a marked
acceptance that there will be
increased competition, said Kevin
Burrows from PwC.
Regulatory changes remain high
up the agenda and will absorb signifi-
cant management time, and spend
on this will be very high throughout
the year. Further job losses across the
sector seem inevitable as banks seek
to manage their cost base.
However, building societies pros-
pered, with net balances of 48 per
cent increasing their work forces.
City success
of 2011 fades
on euro crisis

CITY vacancies plummeted in

December, forcing larger numbers of
well qualified staff to pursue each
opportunity, according to figures pub-
lished today by Astbury Marsden.
Only 1,490 jobs were created in
December, down 43 per cent from
2,260 in the same month of 2010.
Despite a strong start, last year
54,020 jobs were created, down eight
per cent from 2010.
Many of the vacancies were
replacements for staff leaving rather
than brand new roles, said the
recruiting firms Mark Cameron.
A lack of market activity is to blame,
as well as the uncertainty created by
the Eurozone crisis, Cameron said.
According to analysis of FSA data by
advisers IMAS, published yesterday,
21,000 senior bankers one in seven
lost their jobs in the City in 2010.
Finance jobs slump
as outlook worsens

City firms are reluctant
to hire when the eco-
nomic outlook is so
uncertain and they are
being hit by new rules.
Picture: REUTERS
ANALYSIS l Optimism has plummeted at the end of 2011
2000 2002 2001 2003 2004 2005 2006 2007 2008 2009 2011 2010
ANALYSIS l Business volumes rose unexpectedly at the end of 2011
Past 3 months
Next 3 months
2000 2002 2001 2003 2004 2005 2006 2007 2008 2009 2011 2010
PROFESSIONAL services firm KPMG is
poised to announce a five per cent dip
in profit for the UK this morning,
despite a revenue lift of seven per
In the twelve months to 30
September 2011, profit dropped from
416m to 396m, while revenues rose
from 1.6m to 1.7m.
The partners profit-
pool fell to 683,000
from 763,000 in
2010 and UK chair-
man John Griffith-
Jones (pictured)
faced a modest pay
cut from 2.69m in
2010 to 2.62m last
The big four
firms biggest
g r owt h
was in
i t s
risk consulting unit, where business
increased 43 per cent.
Meanwhile its management con-
sultancy and tax businesses grew by
11 and 12 per cent respectively. Its
T&R (Transactions and Restructuring)
division saw a loss of five per cent.
KPMG said its audit unit revenues
had dipped by three per cent in the
face of intense competition.
Turnover across KPMG Europe hit
4.6bn (3.8bn), and on a like-for-like,
pro-forma basis at constant
exchange rates, revenues were up
five per cent from last years
4.5bn to 4.7bn.
Growth in the groups UK,
Russian and Turkish business
offset a weaker performance in
Germany, where revenues were
flat at 1.2bn.
Joint chairmen John Griffith-
Jones and Rolf Nonnenmacher
called the results a robust a
challenging econ-
KPMG profit
for UK falls
five per cent

SWISS National Bank (SNB) governor

Philipp Hildebrand will today face the
questions of a parliamentary commit-
tee over the controversial currency
deals carried out by his wife last sum-
Hildebrand will appear in front of a
scheduled meeting of Switzerlands
parliamentary committee for eco-
nomic affairs and taxation, where
politicians are expected to grill both
Hildebrand and SNB council presi-
dent Hansueli Raggenbass over the
dollar swaps made by Kashya
Hildebrand either side of the central
bank increasing the liquidity of the
Swiss franc.
On Saturday the SNB said it would
review its internal rules governing
own-transactions made by board
members as it seeks to clean up its
image in the wake of the scandal.
SNBs Hildebrand to face
grilling over forex deals

A SUCCESSFUL Olympics seems
almost guaranteed according to
our latest Voice of the City poll,
run in association with, with 73 per
cent respondents feeling opti-
mistic about the event.
Just 10 per cent said
they are pessimistic
about London
But the gov-
ernment can
feel less
happy about
the Citys
views on its
deficit reduc-
tion plans.
More respon-
dents 45 per
cent are pessimistic
on the coalitions key
goal, compared with 41
per cent who are opti-
On the continuing
theme of fiscal woes, 47
per cent are pessimistic
on the UKs economy,
while 30 per cent are still
keeping up some hope
for the recovery.
However, the UKs problems
are less severe than those of the
Eurozone. Just one per cent of
our panel said they are very
optimistic that governments
will be able to get to grips with
the crisis, with a further 11 per
cent somewhat optimistic.
Stocks over the year are set to
stagnate, respondents believe.
The FTSE 100 fell 5.6 per cent
in 2011, losing 327.66
points over the year.
2012 will see a bet-
ter performance,
but not all of those
losses will be
recouped. The aver-
age respondent
predicted the stock
index will stand at
5660.95 at the end of
2012 a gain of 1.59
per cent, or 88.67 points.
Very optimistic
Somewhat optimistic
Somewhat pessimistic
Very pessimistic
NET Optimism: -3%
Ability of the Government to cut the deficit
Very optimistic
Somewhat optimistic
Somewhat pessimistic
Very pessimistic
NET Optimism: 64%
Success of the London 2012 Olympics
Dont know
Very optimistic
Somewhat optimistic
Somewhat pessimistic
Very pessimistic
NET Optimism: -15%
UK Economic recovery
Very optimistic
Somewhat optimistic
Somewhat pessimistic
Very pessimistic
NET Optimism: -67%
Getting to grips with the eurozone debt crisis
Apply to join today at

The Citys outlook on 2012: optimism for

Olympic success but Eurozone doubts
In partnership with
In association with
FTSE expected
to end 2012 at:
+88.67 points
ANALYSIS l How optimistic do you feel
about the following in 2012?
ALL EUROZONE members must pull
their weight, Italian PM Mario Monti
said yesterday, insisting that Italy must
not stand alone in implementing aus-
terity measures to stabilise the euro.
His remarks came on the eve of the
Franco-German summit in which his
counterparts Sarkozy (pictured below)
and Merkel will try to ham-
mer out a unified position.
Europe needs to put
into action common and
co-ordinated growth poli-
cies on financial stability, he
announced. Italy has
made a decisive con-
tribution to solving
the crisis, and other
countries must do the
same, he said.
Monti also urged
faster action on making
the European Stability
Mechanism (ESM) bailout
fund ready.
Meanwhile industry minister
Corrado Passera told daily newspaper
Corriere Della Sera that the govern-
ment plans gradual liberalisations in
sectors ranging from energy to profes-
sional services to revive the economy.
We will proceed in every sector:
gas, energy, commerce, transport, the
professions. Each step will go towards
creating sustainable growth, he said.
Sarkozy and Merkel will visit Monti
in Rome on 20 January before the
finance ministers meetings on 23rd
and 24th, and the EU leaders summit
on 30 January.
It is part of the European mindset
at the moment to raise the stakes
ahead of crucial negotiations,
increasing the pressure on par-
ticipants, said Raoul Ruparel
from Open Europe.
However, it is also impor-
tant to remember that as he
is unelected, Monti con-
stantly wants to remind the
public of contributions he
has made, otherwise he will
lose his position.
Monti builds
pressure on
Merkozy talks
LAST year was tough, but the crisis
will never happen again thanks to the
steps taken by European leaders,
European Council president Herman
van Rompuy claimed yesterday.
The leader insisted he was in a pos-
itive frame of mind about the curren-
cys long-term future.
The euro as a currency was never in
danger, he told Belgian radio station
RTBF. It remains a strong currency.
Van Rompuy stressed the difficulty
of his own role, attempting to find a
common position among the 27 EU
It is never easy, he said, though he
maintains good relations with both
the French and German governments.
However, I have invested a lot and
have good relationships with the other
25 heads of state and governments.
Nonetheless, he did concede that
the crisis is not yet over.
We have a crisis of sovereign debt
in some Eurozone countries and we
have to prioritise solutions for those
countries first, he said.
We had hoped we would have
found solutions much faster our
solutions were a little too weak, but in
most cases they took us in the right
Eventually, we will put this crisis
behind us.
Van Rompuy: I
am positive on
crisis resolution
Monti believes Italy has done more than others to help the euro Picture: REUTERS


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BROKER Panmure Gordon could be
sold to rival Cenkos Securities as the
sectors weak performance prompts
another round of consolidation.
Directors at Panmure have spoken
to their counterparts at Cenkos and
are also believed to have held discus-
sions with another suitor. Sources said
it is right that board members talk
to other firms given the difficult
market but cautioned that any deal
remains a long, long way off.
A drop in commissions and the
flotations drought has led to a wave of
deals among stockbrokers. Last year
Investec bank bought Evolution and
Canaccord agreed to purchase Collins
Stewart Hawkpoint.
Panmure where David Camerons
late father worked and Cenkos
declined to comment.
Cenkos mulling
bid for Panmure
Central characters: Panmures outgoing boss Tim Linacre, inset, and Cenkos co-founder Andy Stewart

News Corp shares hit years high
News Corp shares rose to a 52-week
record last week, topping the highs it hit
before the 4 July story that News of the
World had hacked murdered Milly Dowlers
phone. The media conglomerate
lost nearly a quarter of its market capital-
ization, some $11bn, in just four weeks. But
the market has reacted to strong figures
and shares are now up 30 per cent on the
lows of last summer.
Pets at Home reports 75m profit
Pet care seller Pets at Home has defied the
retail sector slump by reporting full-year
pre-tax profits of 75.2m, up 11 per cent
on the previous year. The figures, filed in
Companies House on Friday, show the
retailer increased turnover 11 per cent to
512m in the year to 31 March, opening 25
new stores in the period. The company,
owned by private equity firm KKR, is set to
open 33 more stores this year.




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RBS could revive the faltering shake-up
of its investment bank by paying bid-
ders to take its stockbroking arm off
its hands.
The state-owned bank is considering
offering the eventual buyer of the
equities business a multi-million
pound dowry in an attempt to avoid
closing it, which could result in up to
5,000 job cuts and cost tens of millions
of pounds. A decision on the future of
the investment bank, known as global
banking and markets (GBM), may be
announced as soon as this week.
The chances of a sale of the cash
equities business are low but demand
is far stronger for Hoare Govett. The
small broking business has worked for
a number of blue-chip clients and its
historic brand remains valuable
despite the loss of several mandates,
such as GlaxoSmithKline late last year.
Oriel Securities has held talks with
RBS and is considering making an
offer for the brand and assets of Hoare
Govett. If it succeeds it would re-unite
Oriel chief executive Simon Bragg and
non-executive Peter Meinertzhagen
with some of their former colleagues.
Numis and US investment bank
Jefferies have also been linked to a deal
for Hoare Govett while Japans Mizuho
Financial is also eyeing parts of RBS,
which has appointed Lazard to advise
on the scaling back of GBM. It comes
after chancellor George Osborne
demanded that RBS shrink and sell off
parts of the investment bank on a
greater scale than it had originally
City jobs fear
as RBS in race
to sell broker
TOP-END house prices in London have
kept rising despite global economic
uncertainty, according to data seen by
City A.M.
Properties worth between 5m and
10m grew in value by 3.5 per cent in
the year to the end of September 2011,
research from Investec reveals.
Houses worth between 1m and
2m increased in value by over 1.4 per
cent over the same period, while the
top bracket (between 10m and 15m)
rose in price by a similar amount.
The capital is still a very popular
place for the worlds wealthiest peo-
ple to buy property and live, com-
mented Jack Jones of Investec
Specialist Private Bank.
High end prices remained on the
up throughout the whole of 2011,
according to separate data released
this morning by Knight Frank.
Prime London prices rose by 0.8 per
cent last month, the estate agent said
contributing to an eye-watering 12.1
per cent jump in house prices in some
of Londons most salubrious post-
Prices for prime central London
residential property have risen more
than 40 per cent above the post-
Lehman low reached in March 2009,
said Liam Bailey, Knight Franks head
of residential research.
High-end house
prices on the
rise in London
RBS chief executive Stephen Hester must decide quickly on any sell-off Pic: REUTERS


ANALYSIS l Royal Bank of Scotland Group PLC
30Dec 3Jan 4Jan 5Jan 6Jan
6 Jan
Oriel boss Simon Bragg could take on the long-standing Hoare Govett brand
10 CITYA.M. 9 JANUARY 2009
RETAILERS fell into administra-
tion at a faster rate last year, with
a leading industry body warning
that tax hikes will see even more
high street stores going bust in the
months to come.
Retail administrations totalled
183 in 2011, according to data
released today by Deloitte -- an 11
per cent rise on the previous years
total of 165.
And the situation appeared to
be getting worse towards the year
end, with administrations increas-
ing by 27 per cent in the final
three months of the year, com-
pared to quarter three.
With business rates set to rise by
5.6 per cent in April, the British
Retail Consortium (BRC) says that
more misery could be set to come.
The next few months are
bound to be quieter as consumers
rein in spending after Christmas,
said BRC chief Stephen Robertson.
The government should boost
the industry by holding back the
costs for which they are responsi-
ble, including business rates,
retail levies and the burden of reg-
ulation, Robertson said.
Retailers dont ask for hand-
outs but they do deserve help over-
coming some of the barriers to
business success.
The outlook is not so bleak
across the economy as a whole,
Deloitte added. Overall, the total
number of companies falling into
administration in 2011 declined
by four per cent from 2,086 in
2010 to 2,010, said Lee Manning,
restructuring services partner.

Retailers warning:
more woes to come
FOOTFALL on the UK high streets
fell by 1.1 per cent last year, accord-
ing to data released this morning.
The decline was not as steep as
the 3.5 per cent drop recorded by
Springboard -- which conducts the
research -- in 2010.
Despite year-round negative
news from retailers, footfall on UK
high streets declined at the lowest
rate in five years, suggesting that
the decline is bottoming out fol-
lowing the steep post-recession
drops, the report said.
And footfall picked up signifi-
cantly over the Christmas period,
according to the data -- with a 5.1
per cent rise in December, com-
pared with the same time in 2010.
Higher footfall does not neces-
sarily mean that shoppers are
spending but it does mean retail-
ers have an increased sales oppor-
tunity, the report explained.
Footfall still declining
on the UKs high streets

SMALL and medium sized companies

should be able to swerve burdensome
regulations by employing their work-
ers as self-employed contractors, a
think tank will argue today.
SMEs currently face prohibitive lev-
els of regulation and taxes, and the
government must focus on reducing
these costs rather than pushing a myr-
iad of schemes of government assis-
tance and support, the Adam Smith
Institute (ASI) states.
Much red tape can be dealt with eas-
ily by large firms but poses an insur-
mountable burden to smaller
companies, according to Dr Madsen
Pirie -- author of The Growth Agenda:
The Self-Employment Option.
Allowing firms to classify employees
as self-employed workers would also
relieve the strain of regulations from
Brussels, the ASI says.
would let SMEs
avoid red tape

The number of visitors to UK high street retailers fell last year Picture: PA
TESCO is set to deliver its worst
Christmas trading performance for
decades this week after the super-
markets 500m price cutting cam-
paign failed to gather pace in the
fierce battle for supermarket sales.
Deutsche Bank, a house broker to
Tesco, is forecasting a two per cent
decline in like-for-like sales from UK
stores in the six weeks to 7 January,
compared with a 0.9 per cent fall in
the third quarter.
The weak performance by Britains
leading supermarket by market share
highlights the steep competition
among the big four supermarkets as
well as weak trading at Tescos non-
food arm, which suffered an extra
blow last week with the departure of
its commercial director.
Shore Capital analyst Clive Black
called Tesco the laggard of the Big
Four in terms of like-for-like trading
momentum over the Christmas peri-
od while retail analyst Nick Bubb
blamed Tescos woes on its formida-
ble competitors, with management
teams on top of their game.
Its rival Morrisonss trading state-
ment today is expected to reveal a
slightly better two per cent growth in
like-for-like sales since November,
according to estimates by Shore
J Sainsbury, which publishes its
statement for the whole of the third
quarter next month, is forecast to
show a two per rise on a year ago.
According to figures on Friday
from market researcher Nielsen, Asda
outperformed its rivals in the five
weeks to December 24.
Retailers Marks and Spencer and
Debenhams are also expected to
report declines this week of around
1.5 and two per cent respectively over
the Christmas period.
Tesco set to
unveil bleak
Morrison eyes Best Buy deal
SUPERMARKET giant Wm Morrison is
in advanced talks with Carphone
Warehouse to buy 11 big box stores
occupied by electronics chain Best
Buy in order to convert them into its
fast-growing Kiddicare brand.
Britains fourth-biggest grocer-
bought the online baby products
retailer Kiddicare last year for 70m
in its first step to building a business
selling non-food goods over the inter-
It is thought that all 11 Best Buy
sites are under offer to Morrison,
although the company may decide to
select only the best sites. A spokesper-
son for the firm declined to com-
The large stores, located in out-of
town-retail parks, are part of Best Buy
Europe, a joint venture set up
between US group Best Buy and
Carphone Warehouse in 2008, which
was intended to shake up the elec-
tronics market with cheaper prices
and better customer service.
However, Carphone Warehouse
said in November that the outlets
would close and be put up for sale
after the venture failed to take off
and racked up losses of 62m over the
Morrisons plans to bring Kiddicare
to retail parks will pit the company in
against baby goods retailer
Mothercare, which is battling to turn
around its UK operations.
At the time of the deal chief execu-
tive Dalton Philips said Kiddicare and
its technology platform would help
the firms expansion into the online
non-food business.


Dont be unnerved by this retailers blip

IN A WORLD of fierce supermarket
price wars, and in the words of a
well-known supermarket chain,
every little helps. And every percent-
age point change in sales growth or
underperformance can send alarm
bells through the industry.
Tescos own house broker sig-
nalling a two per cent decline in UK
sales has surely raised some fears
among shareholders that Tesco is
failing to buck the downward trend
of flagging sales.
Even in the context of a tough
Christmas, it seems that rivals
Sainsbury, Morrisons and Asda have
collectively been just that little bit
smarter and more proactive than
Tesco in terms of marketing promo-
Yet despite the slight shine off
Tescos preeminent position, the
company remains the leader by mar-
ket share and its UK performance
represents only a small part of a
much bigger picture.
Overseas growth is strong and it
would be foolish to write off this
Goliath of the sector just yet.
Best to sit tight for a couple of
days and buy on the inevitable weak-
Analysis by Kasmira Jefford
Morrisons CEO Dalton Philips
Like-for-Like sales:
(5 weeks to 1 January)
Like-for-Like sales:
(1 August to 24 December)
Like-for-Like sales:
(5 weeks to 31 December)
(owner of Oasis, Coast
and Warehouse)
Like-for-Like sales:
(5 weeks to 31 December)
Like-for-Like sales:
(4 weeks to 26 December)
Like-for-Like sales:
(5 weeks to 31 December)
BMW Olympic mentions by category
Regional News
National News
Brought to you by
the media monitoring and analytics
platform, City A.M. is measuring the rel-
ative Olympic media buzz around the
partners for the London 2012 Olympic
and Paralympic Games, week by week.
The leaderboard, right, reflects their
ranking over the past week, in this case
from Wednesday 28 December to
Wednesday 4 January.
Again we see BMW with a
strong position in the online
buzz ranking, this time for
widespread debate around
the announcement that
they are to ship 4,000 brand-new luxury
vehicles from Germany.
Another media success was widespread
tweets for Adidas thanks to a retweet com-
petition where users could win a free Adidas
messenger bag organised by @USAGym
the official Twitter account for the National
Governing Body of Gymnastics in the US,
which boasts over 18,000 followers.
Coca-Cola also saw good coverage from a
video featuring pop band The Wanted giving
teenagers the chance to carry the Olympic
Olympic Media Buzz
Brand Position change
Adidas 16
McDonalds 7
BT 1
Visa 1
Samsung 4
Cadbury 11
GE 5
Coca-Cola 10
REPUBLICAN candidates for their
partys presidential nomination
clashed in a fractious debate over the
weekend as polls showed
Massachusetts governor Mitt Romney
maintaining a clear lead in New
Hampshire, the next state to vote.
During the debate, Romney was
forced to defend his background in
finance when rival Rick Santorum
said: Business experience doesnt
necessarily match up with being the
commander-in-chief of this country.
The commander-in-chief is not a CEO.
Romney responded: People who
spend their life in Washington dont
understand what happens in the real
economy. People who start business-
es those people are leaders.
Santorum, a former senator for
Pennsylvania, lost the Iowa primary to
Romney by just eight votes, but a
recent poll on Friday by Suffolk
University showed him on a mere
eight per cent in New Hampshire, ver-
sus Romneys 40 per cent.
Texas congressman Ron Paul, who
scored 17 per cent in the Suffolk
University poll, accused his rivals of
favouring more state spending.
Youre a big spender, a big govern-
ment conservative, he told
Santorum. He also accused former
congressman Newt Gingrich of refus-
ing to serve in the army during the
Vietnam war.
Santorum attacks Romneys
big business background

12 CITYA.M. 9 JANUARY 2012
Republican presidential candidates gather onstage after debate in Concord, New
Hampshire Picture: REUTERS
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City, after the much-criticised takeover of
Asian rival AIA claimed the scalp of chair-
man Harvey McGrath, who leaves in May.
But then both men know all about
how to manage troubled reputations in
the press the pair worked at Express
Newspapers, where Murray hired Oliver
for the first time, before Murrays jour-
ney through Telewest, Powerscourt and
the FSA, and Olivers rise to corporate
PR firm TLG via the political editorship
of the Sunday Times.
THE WELL-RESTED Lloyds boss Antnio
Horta-Osrio is not the only City name
making a new start this morning.
Today is also the first day for veteran
fund manager Jim Mellon (right) as non-
executive director of Aim-listed urological
manufacturer Plethora. Chairman Bill
Robinson tells me: We look forward to
[Mellons] input at the board with his con-
siderable experience as a global investor.
Mellons overseas experience is indeed
considerable. As co-founder of the
Hong Kong-listed Regent Pacific Group,
the money manager ran into a little local
difficulty with the South Korean prose-
cutors office, which issued an arrest
warrant in his name in 2000 relating to
his alleged involvement in a conspiracy
to manipulate the share price of sub-
sidiary Regent Securities.
There was more controversy in 2008,
when the unfortunately named Bigsave
Holdings, of which Mellon was a direc-
tor, went into voluntary liquidation.
To lose one company may be regarded
as a misfortune; to see a further five
investment companies go under
including the Undervalued Assets Fund
and the Greater China Fund Series III
research. The young(ish) pretender moves
from Religare Capital Partners, following
lengthy spells at Rio Tinto and UK Coal.
ON THE subject of new hires, Jonathan
Oliver joins Prudential as director of group
media relations at Prudential today,
reporting to his former boss John Murray.
Top of the in-tray will be restoring the
FTSE 100 insurers stock in the eyes of the
looks like carelessness, even though
they were again voluntary liquidations.
Not a CV that leaps out at you, perhaps
except Mellon, who says the share-fix-
ing allegations are without substance,
has the advantage of owning ten per cent
of Plethora, and was pivotal in its latest
financing round. A spokesperson for
chief executive Ronald Openshaw told
The Capitalist: We have nothing but con-
fidence in Jims abilities, and his reputa-
tion speaks for itself.
REMEMBER Richard Budge, the man
nicknamed King Coal after buying
most of the countrys coal pits in the
1990s post privatisation?
This morning, stockbroker Merchant
Securities unveils his son Kurt Prince
Coal Budge as its new head of mining
Got A Story? Email
Follow The Capitalist
on Twitter: @dennysharriet
THE OWNERS of Archer Street, the Soho members bar that
opened shortly before Christmas, prefer to remain anonymous.
But comedian Graham Norton and ex-cricketer Sir Ian Botham
have been among the first to grace Londons first Billecart-
Salmon champagne bar, as have naturally ten still-solvent
investment bankers. The theatreland venue, where bar-staff perform numbers from West End hits, pro-
vided a tonic to help the bankers drown their job-security sorrows. Rather a lot of tonics, in fact: eight bottles of
Billecart Brut Reserve, ten of La Battistina Gavi and 22 Prohibition-strength cocktails. If the group can remember how
they got home after ordering some Hooley Dooley, which tipped the tab over 1k, The Capitalist will be impressed.
The Capitalist
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THE art market proved beautiful for
investors last year, with a 10.2 per cent
growth in prices shown by the Mei
Moses World All Art Index.
The index, which measures returns
on art mainly by tracking repeat sale
prices in New York and London, was
boosted by growing Chinese demand
and estimate-beating auctions. They
included the sale of Andy Warhols
1981 work Dollar Sign, which sold at
Sothebys for just under $700,000
(454,000) twice the original estimate
plus the sale of the pop artists
Liz#5 and Flowers which went last
May for $27m and $8.1m respectively.
Meanwhile, Roy Lichtensteins paint-
ing I Can See The Whole Room...and
Theres Nobody in It! set a new auction
record for the artist when it sold at
Christies in November for $43m reap-
ing a stunning $40m profit.
Returns from traditional Chinese
works rose 20.6 per cent during 2011, as
Chinese investors sought to reclaim
cultural assets that had been sold to
western investors.
Impressionist and modern art gave
returns of 14 per cent, postwar and con-
temporary art were up 6.4 per cent,
while Old Master and 19th century art
increased by 4.8 per cent.
The indexs 10.2 per cent growth fol-
lowed a 16.6 per cent rise 2010. That in
turn followed a 23.5 per cent plunge for
2009 in the wake of global recession.
Index creators Jianping Mei and
Michael Moses were upbeat about the
profit potential for art, pointing out
that market outperformed the S&P500
US equities market by nine percentage
points last year.
Furthermore, the Mei Moses has
beaten the S&P 500 in six of the last 10
years, with an average annual return of
7.8 per cent compared with 2.7 per cent
for the benchmark US index.
However Moses warned that gather-
ing signs of economic gloom may
depress the market for this year.
Recent economic conditions have
made art investors much more cau-
tious and thus have tempered their
enthusiasm, resulting in somewhat
lower growth, he said.
Art market is
a real winner
Show me the money: Andy Warhols Dollar Sign fetched double its estimated price

GLOBAL biopharmaceutical company
Bristol-Myers Squibb has announced
plans to buy drug-testing firm
Inhibitex for around $2.5bn (1.62bn),
gaining a frontrunner in the race to
treat hepatitis C (HCV).
Inhibitex, a clinical-stage drugs
company which focuses on serious
infections, has urged its shareholders
to support this Bristol-Myers offer of
$26-per-share a 62 per cent increase
on Inhibitexs share price of $9.87 at
close of play on Friday.
The transaction is expected to be
dilutive to earnings for Bristol-Myers
until 2016, with earnings per share
down by an expected $0.04 this year
and $0.05 in 2012.
However, Inhibitexs hepatitis C
drug INX-189 is expected to be crucial
in the advancement of treating the
disease. Currently in Phase II develop-
ment, it has exibited potent antiviral
activity, a high barrier to resistance
and pan-genotypic coverage, accord-
ing to a statement.
Lamberto Andreotti, chief execu-
tive of Bristol-Myers, said, There is
significant unmet medical need in
hepatitis C. This acquisition repre-
sents an important investment in the
long-term growth of the company.
The acquisition of Inhibitex builds
on Bristol-Myers Squibbs long history
of discovering, developing and deliv-
ering innovative new medicines in
virology and enriches our portfolio of
investigational medicines for hepati-
tis C.
Inhibitex chief executive Russell
Plumb added, This transaction puts
INX-189 and the companys other
infectious disease assets in the hands
of an organisation that can more opti-
mally develop them and which
believes as strongly as we do in INX-
189s potential in the treatment of
chronic HCV.
Bristol-Myers largest-selling prod-
ucts include blood clot preventative
Plavix, antidepressant Abilify and HIV
combatant Reyataz.
Alongside hepatitis C treatment
INX-189, Bristol-Myers will gain other
drugs from Inhibitexs development
portfolio, including FV-100, which
reduces shingles-associated pain, and
Aurexis, which targets bloodstream
Citi is leading Bristol-Myers
through the acquisition while Credit
Suisse Securities (USA) is advising
COMPANY fraud hit 2bn for the first
time in 2011 up 50 per cent on the
previous year a survey published
today reveals.
The 2011 FraudTrack report by
accountants BDO which collates
data from all reported fraud cases
over 50,000 shows a dramatic rise
in both the number and average
value of reported cases.
There were 413 cases, at an average
value of 5m, compared with 372
cases in 2010 at an average value of
There has been a boom in reported
fraud in the retail sector, which
accounted for 12 per cent compared
of the total with just two per cent in
But the finance and insurance sec-
tor only account for 27 per cent of
compared with 56 per cent in 2010.
The construction sector represents
just one per cent of all reported
fraud, compared with 34 per cent last
year, the report found.
Tax offences account for the high-
est percentage of fraud committed, at
just over 36 per cent.
Employee fraud is down to 10 per
cent from 14 per cent last year last
year. The average per fraud is 1.4m.
BDOs annual survey was launched
in 2003 when the total fraud tally was
331m. Simon Bevan, head of fraud
at BDO said: The fact that reported
fraud is up is worrying, but not at all
surprising given the difficult eco-
nomic climate.
Company fraud grows 50 per cent to
hit a record 2bn, says new report
IRAN will in the near future start
enriching uranium deep inside a
mountain, a senior official said, a
move likely to further antagonise
Western powers which suspect
Tehran is seeking nuclear weapons
A decision by the Islamic Republic
to conduct sensitive atomic activities
at an underground site - offering bet-
ter protection against any enemy
attacks - could complicate diplomatic
efforts to resolve the long-running
row peacefully.
Iran has said for months that it is
preparing to move its highest-grade
uranium refinement work to
Fordow, a facility near the Shiite
Muslim holy city of Qom in central
Iran, from its main enrichment plant
at Natanz.
The Fordow nuclear enrichment
plant will be operational in the near
future, the head of Iran's Atomic
Energy Organisation, Fereydoun
Abbasi-Davani, said.
Iran close to enriching
uranium, says official

Andrew Gower, the Cambridge boy

who founded computer gaming
firm Jagex with his brother in the
late 1990s, pocketed 75m last year
when private equity firm Insight
Venture Partners bought his one-
third stake in the online games
The deal took place in February
2011 when Insight Venture Partners
upped their 35 per cent investment,
bought in 2005, to a 55 per cent con-
trolling stake.
Jagexs financial accounts for the
year to 31 March 2011 have recently
appeared on Companies House,
revealing that a company valauation
of between 220m and 240m would
have placed Gowers one-third chunk
at around the 75m mark.
Jagex, the multi award winning
company behind computer games
such as War of Legends and
Runescape, had revenues of 45.3m
in fiscal 2011 up two per cent from
the year before.
However, operating profits sank 43
per cent from 18.8m to 10.7m,
while net profit for the year stood at
6.7m, down from 13.8m in 2010.
Andrew Gower ceased to be a direc-
tor of the company in December 2010
when he resigned.
Jagex said to stand for Just About
The Game Experience headquarters
in Cambridge, despite its controlling
stakeholder being based in New York.
Founder of
Jagex made
75m in sale

NISSAN Motors and Daimler said yes-

terday they would produce Mercedes-
Benz gasoline engines at Nissans
Tennessee factory from 2014 to be fit-
ted on Mercedes and Infiniti models.
Production capacity of the four-
cylinder engines will reach 250,000 a
year at full ramp-up, the companies
said. The project is the latest between
Daimler and the alliance of Nissan
and Renault, which are exploring
ways to share vehicle, engine and
other technologies to save develop-
ment costs and respond faster to mar-
ket needs.
It also marks the first production
of Mercedes-Benz engines in North
America, where the German
automaker is looking to build a
stronger manufacturing footprint.
The engines will power the brands C-
Class cars built at Daimler's Alabama
plant. Nissans Tennessee plant
makes engines for US-produced
Nissan and Infiniti models, and built
more than 580,000 engines last year.
Nissan US to make engines
for Daimler and Infiniti

OLYMPUS could sue current and for-

mer executives who were involved in
the $1.7bn (1.1bn) accounts scandal
exposed last year for more than 90bn
yen (0.78bn) after an independent
report into management responsibili-
ty at the Tokyo-based company advo-
cated this measure.
This has led to speculation that
Shuichi Takayama, president of
Olympus Corp since October and one
of the executives named in the report
for covering up colossal losses, will
now buckle to demands that he
resign. The Japanese camera company
will announce details of any pro-
posed legal action tomorrow but has
declined to comment on Takayamas
Other Olympus executives impli-
cated by the independent report
include former president and chair-
man Tsuyoshi Kikuwaka, former vice
president Hisashi Mori and former
auditor Hideo Yamada.
A new chief executive could be
found in Masataka Suzuki, Kazuhiro
Watanabe or Shinichi Nishigaki the
three board members deemed not
involved in the cover up by the report.
Michael Woodford, the former
Olympus chief who blew the whistle
on the fraudulent accounts, on Friday
dropped his bid to return to Olympus
and announced he would sue the
company for unfair dismissal.
Shares, which sat comfortably
around the Y2,500 mark until
October, closed yesterday at Y1,053.
Olympus could sue executives

plans $2.5bn
drugs merger


Over 1bn of losses were concealed in the 92

year old companys investment portfolio.
Michael Woodford, the first non-Japanese
chief executive of Olympus, was sacked in
October after questionning suspect accounts.
17 CITYA.M. 9 JANUARY 2012
ANALYSIS l Bristol-Myers Squibb's largest-selling products, 2010
$6.7 blood clot
antidepressant billion
$1.4 HIV
hepatitis B
high blood
pressure treatments
* Franchise
Lamberto Andreotti and Russell Plumb (inlay) will join forces to combat hepatitis C
18 CITYA.M. 9 JANUARY 2012
A LETTINGS agency that plans to
attract ex-City workers and
bankers to expand its network of
franchises has announced its
intention to float on the
Alternative Investment Market in a
listing that will raise 8m includ-
ing 3m in new money.
Belvoir Lettings, which runs 142
franchised offices across the UK
will be valued at around 18m
when it joins the market early next
Chairman and chief executive
Mike Goddard, who founded the
firm with his wife in 1995, said the
listing will help the company tap
into the growing rental market
and expand to 200 offices by 2016.
Goddard, a former RAF wing
commander, added that the com-
pany would use the cash raised to
fund bolt-on acquisitions of small-
er standalone lettings agencies in
what he described as a fragment-
ed market.
The Lincolnshire-based firm
counts ex-serviceman and teachers
amongst its franchisees, with the
top quartile turning over more
than 300,000.
Many recently redundant City
workers could do far worse than
consider setting up their own
Belvoir franchise in one of the
many free territories across the
UK, said Guy Peters, head of
Bevloirs advisory team at Seymour
Profits before tax for the first
nine months of 2011 stand at
1.8m compared with around 2.1
for the full year in 2010.
Lettings agency
put up for sale

Novartis takes
$120m hit with
product recall
NOVARTISS consumer health unit
will take a $120m (78m) hit in the
fourth quarter after the Swiss drug-
maker decided to voluntarily recall
some products in the United States
and move to improve quality stan-
dards at manufacturing sites.
Novartis said in a statement yester-
day that operations and shipments
had been temporarily stopped at the
Novartis Consumer Health (NCH)
Lincoln, Nebraska facility, to acceler-
ate improvements at the site.
The group is recalling all lots of
select bottle packaging configura-
tions from retailers of Excedrin and
NoDoz products with expiry dates of
December 20, 2014 or earlier as well
as Bufferin and Gas-X Prevention
products with expiry dates of
December 20, 2013 or earlier, in the
United States.
Novartis said there had not been
any adverse events reported. The
products are being recalled due to an
internal product review and com-
plaints that identified issues such as
broken gelcaps and chipped tablets.

Low-budget horror tops US movies
Low-budget horror movie The Devil Inside
topped the weekend box office with a surpris-
ing $34.5m in US and Canadian ticket sales,
according to studio estimates released yester-
day. The strong performance for Devil knocked
Tom Cruise's Mission: Impossible - Ghost
Protocol to second place. The fourth movie in
the action franchise brought in an estimated
$20.5m from Friday through to yesterday.
Israel vows to fight hacking
Israel has promised to hit back after the
online publication of thousands of its citizens'
credit card details by a hacker who says he is
based in Saudi Arabia. It compared the
attack to terrorism. The data theft, which
appeared to focus on commercial websites,
was one of the worst Israel has said it has
faced. The breaches were welcomed by the
Palestinian militant group Hamas.
Sir Paul Ruddock, the hedge fund manager caught up in controversy after he
was awarded a knighthood, has defended his honour and said his award was
for helping revive the Victoria and Albert (V&A) Museum. The Lansdowne
Partners co-founder was criticised for also being a Tory donor. Picture: REX
Eurozone New Year is dawn of the living dead
O were up and running. 2012 is
fully underway and here I am
with the same question I had in
January last year. Weve always
presumed that whatever happens to
the Eurozone, one way or another
Northern Europe specifically
Germany would eventually have to
pay for it. Whats never been clearly
answered is exactly how and when.
And thats despite over 40 different
meetings between heads of state,
finance ministers, the G8 and the G20
in the last 12 months.
About the only thing I can be fully
confident of is that were going to get a
lot more meetings, kicking off with
another Merkozy get-together this
week, that fail to get us any closer to
definitive solutions.
In addition, German policy seems to
have been designed to put off paying for
anything as long as humanly possible.
Angela Merkel talks of a 10-year period
of adjustment. It took a decade of wage
suppression and painful adjustment to
fully absorb the former German
Democratic Republic. Merkel believes
southern states must go through this
before we can consider an ultimate
answer, be it Fiskal union or debt
And it was with this thought that
something occurred to me at Christmas
while watching a rerun of Shaun of the
Dead, the comic zombie movie with
Simon Pegg. At the end Peggs charac-
ter is about the only human left, but liv-
ing quite happily with him at the
bottom of the garden is Nick Frosts
character his best mate who is now a
zombie. And thats the Eurozone debt
crisis. Its neither fully dead nor alive.
We cant kill it with a break-up nor can
we solve it. We just have to live with it
and deal with the implications contin-
uous lower growth, higher unemploy-
ment, banks on life support, more
taxes, constricted credit, underinvest-
ment and central bank action.
For investors, our zombie friend
means more uncertainty and volatility.
Last year the best two performers out of
the STOXX 600 were both tobacco BAT
and Imperial. With steady earnings,
some equity market growth, high cash
generation and a well covered dividend,
they represented the exact opposite of
the overall economic environment.
Many believe you could do worse than
investments like this again in 2012.
Gilts returned over 17 per cent. Many
think yields can go even lower from the
record 1.96 per cent hit two weeks ago.
As Eric Wand of Lloyds Bank puts it, in
an ugly contest, gilts are relatively
attractive. They have gained from the
problems in Europe. If the zombifica-
tion of the continent persists, gilts may
well continue to benefit.
Ross Westgate co-hosts Worldwide
Exchange daily on CNBC and also anchors
Strictly Money --
Belvoirs nominated advisory team is
being led by Guy Peters, managing
director of corporate finance at the
investment bank Seymour Pierce. A
qualified solicitor, Peters moved into
investment banking in 1989, working
at Arbuthnot Securities for a decade
before joining Shore Capital in 2004.
There he acted for the team running
DP Poland, the Domino's Pizza fran-
chise for Poland, on the takeover of
coffeeheaven when it was sold to
Costa Coffee in 2009 for some
40m. Joining Seymour Pierce in
2010, Peters then led the flotation of
DP Poland that year. Peters warned
that the 2012 IPO market is unlikely
to be teeming with prospects. He
added that while there has been
some recent activity, the market is
undoubtedly more selective.
The Pacific Alternative Asset
Management Company (Paamco) has
promoted Lisa Fridman to partner.
Fridman, who has been with the firm
since 2004, will assume responsibility
for managing Paamcos London office in
addition to her existing role as head of
research for Paamco in Europe. Stephen
Oxley, Paamcos senior partner in
Europe, has been appointed to a new
global strategic management role.
Hakan Binbagil has been appointed
as chief executive of Akbank, the sec-
ond biggest listed bank in Turkey that
is part-owned by Citigroup. Binbagil
has been deputy chief executive of
Akbank since May 2008.
M&G Investments
The investment manager has appoint-
ed Colm DOlier as deputy fund manag-
er on the M&G global emerging
markets fund and the M&G Asian fund.
Both funds will continue to be co-man-
aged by Michael Godfrey and Matthew
Vaight. DOlier has been supporting
Godfrey and Vaight on the funds since
he joined M&G in 2007 as an analyst
on the global equities team.
Ropes & Gray
Iain Morpeth has joined the law firms
London office as a partner in its private
equity practice group. Morpeth moves
to Ropes & Gray from Oppenheimer
Investments; prior to that, he was a
partner at Clifford Chance.
Dexion Capital
The boutique investment bank has
appointed listed alternatives specialist
Tom Skinner, previously senior
research analyst at JP Morgan
Cazenove, as head of research. Roy Kuo
moves to lead a new product develop-
ment team as part of an internal
reshuffle at the bank, while Robert Peel
joins Dexions corporate finance team
from the investment trusts team at
Winterflood Securities.
Aetna, the healthcare benefits compa-
ny, has appointed Matthew Hunt as
managing director, health services, of
Aetna International. Hunt joins from
McKesson Technology Solutions,
where he was vice-president of inter-
national sales and marketing.
+44 (0)20 7092 0053
To appear in CITYMOVES please email your career
in association with
To appear in Best of the Brokers email your research to
ANALYSIS l Groupe Eurotunnel SA
Nov Dec Jan

6 Jan
Morgan Stanley downgrades the channel tunnel operator to equal-weight
from over-weight, with a target price of 4.70 (3.88) after a circa 30 per
cent drop in its share price from its peak. The broker cites a weaker macro
outlook and change in the markets approach on valuation for the fall, and
says that despite a bigger-than 50 per cent upside to fair value, it prefers
Atlantia in the sector.
ANALYSIS l International Personal Finance
Nov Dec Jan
6 Jan
Citi downgrades the doorstep lending firm to neutral and lowers its target
price from 317p to 195p after currency weakness drove the broker to make
a cut to its earnings predictions for the company. Citi also sees slowing eco-
nomic growth as a threat, particularly potential tail risk in Hungary from
both the recent introduction of a rate cap and market concern over the sov-
ereigns solvency.
Nov Dec Jan
6 Jan
JP Morgan restates its investment case on the global brewer, which it gives
an overweight rating and target price of 2,640p. The broker sees SABs
key strengths as lying in its leading market positions and exposure to
growth markets, especially the Latin America and Africa (ex-South Africa)
divisions, which account for 42 per cent of group earnings before interest,
tax and amortisation.
Innis & Gunn
Innis & Gunn, the independent brewer, has
recruited David Cockburn as chief financial offi-
cer and a member of the board. Before moving
to Innis & Gunn, David spent 19 years at
PricewaterhouseCoopers and, latterly, Grant
Thornton, where he was made a partner in
2006. Cockburn specialised in corporate
finance and was involved in corporate transac-
tions across sectors and countries including
Australia, Spain, Greece, North America and
South Africa, where he worked for three years.
19 CITYA.M. 9 JANUARY 2012
TOCKS have strayed from their
recent link to euro moves, and
the start of US corporate earn-
ings next week could help shift
investor focus back to US fundamen-
tals from Europe.
Stocks have traded in line with the
euro over the autumn, with both
experiencing sharp swings on head-
lines from the Eurozone.
That trend may be changing, and it
comes just as investors get their first
glimpse at fourth-quarter US earn-
Aluminum company Alcoa is
expected to report today after the
closing bell, unofficially starting the
reporting period for US corporations.
JPMorgan Chase is due to report on
Friday, but the bulk of Standard &
Poors 500 earnings will come in the
weeks ahead.
I think this month were probably
going to break away and see the pat-
tern of US market trade on US funda-
mentals rather than in reaction to
the euro movement, said Fred
Dickson, chief market strategist, D.A.
Davidson & Co. in Lake Oswego,
I think were in a time-out period
for that (dollar) carry trade, and it will
stay a time out for a while.
The correlation between S&P 500 E-
mini futures and the euro, which
moved in near lockstep in the fall, has
receded. A 22-day moving average of
the correlation shows almost no rela-
tion between the movements of the
two assets.
While the corporate results will be
searched for evidence of the
European crisis impact on overseas
sales, they should also bring back
more of a focus on whats happening
in the United States, where the econo-
my has been northward bound.
Fridays US jobs reports was the lat-
est data to suggest the recovery is
gathering momentum, with non-
farm payrolls rising in December and
the jobless rate dropping to a near
three-year low of 8.5 per cent.
S&P 500 fourth-quarter earnings
are expected to have risen 7.8 per cent
from a year ago, according to
Thomson Reuters data. But that num-
ber is down from a 1 July forecast for
growth of 17.6 per cent in the quarter.
Were going to need good, strong
positive news on earnings to lift all
three of the market averages out of
their trading ranges, Dickson said.
Theyre bumping into some over-
head resistance, and its going to take
fundamental news to do it.
The S&P 500 ended virtually
unchanged for 2011, even though
most strategists had expected gains
for the year.
The index has been unable to
pierce through 1,285, the closing
high set in late October.
Stocks ended with gains for the
first trading week of the year, as the
mostly upbeat US economic data off-
set lingering worries about the Euro
zone. The Dow Jones industrial aver-
age was up 1.2 per cent for the week,
the Standard & Poors 500 was up 1.6
per cent and the Nasdaq was up 2.7
per cent.
This weeks economic calendar
includes data on US retail sales and
consumer sentiment.
Even with a focus on earnings,
investors will be watching Italian and
Spanish government bond sales this
week. Both are seen as the years first
big funding tests for struggling Euro
zone countries. Italy is to pay out
100bn (82bn) in bond coupons and
redemptions in the first four months
of 2012.
VENEZUALAN president Hugo
Chavez said yesterday that his coun-
try would not recognise a ruling by a
World Bank tribunal in a multibil-
lion-dollar arbitration case with
Exxon Mobil.
Exxon took Venezuela to the World
Banks International Center for
Settlement of Investment Disputes,
or ICSID, seeking as much as $12bn
(7.8bn) in compensation after
Chavez ordered the nationalization
of the Cerro Negro oil project in 2007.
I tell you: we will not recognise
any decision, Chavez said during a
televised speech.
He has repeatedly accused the US
oil major of using unfair deals in the
past to rob the South American
OPEC member of its natural
Last week another arbitration
panel, of the International Chamber
of Commerce, awarded the US com-
pany $908m in a separate case relat-
ing to the Cerro Negro
nationalisation, turning attention to
the ongoing World Bank proceed-
On Saturday, Venezuelan oil minis-
ter Rafael Ramirez said he did not
expect a verdict in that case before
the end of this year. It is due to start
being argued in February.
Both cases have been closely
watched by the industry for prece-
dents in future disputes between
companies and producing states,
which have increasingly sought a
greater share of oil revenue as prices
soar and new reserves become
tougher to find.
On Friday, Exxon Mobil and the US
government struck a deal allows the
company to move ahead with devel-
opment of a field in the Gulf of
Mexico estimated to yield tens of bil-
lions of dollars of oil.
Exxon sued the government last
year after the Interior Department
canceled three of five leases for what
is called the Julia field.
The settlement will allow Exxon
Mobil to develop this very large, but
technically challenging resource as
quickly as possible using a phased
approach, Exxon Mobil spokesman
Patrick McGinn said in a statement.
In its lawsuit, Exxon argued that
the department arbitrarily deprived
the company of its rights under the
canceled leases and took away
Exxons ability to produce a reservoir
believed to hold billions of barrels of
Venezuela ignores World
Bank rule on Exxon case

Hugo Chavez has said he will not recognise the World Banks decision Picture: REUTERS
T THE dawn of a New Year, one bright
spot across the gloom of the economic
horizon remains Britains army of entre-
preneurs those remarkable men and
women who have the drive and passion to
launch and run their own business.
For it is these often family-owned ventures
the small and medium enterprises (SME)
which provide the most immediately credible
means of helping revive the UK economy.
Without successful SMEs, there will be no cor-
porate giants of tomorrow. Without the growth
of fledgling companies, there will be little
meaningful job creation. Opportunities for
newly fledged graduates, for example, are not
going to come from the FTSE 100 companies.
Consider the numbers. It is obviously far
more realistic for each of the 4.8m SMEs in the
UK to create an additional job than it is for each
of the FTSE 100 to generate another 48,000 posts
apiece that is highly unlikely to happen any-
time soon.
We must look to the government to oil the
wheels of policy changes to expedite this
process. And from the London Stock Exchanges
participation in the debate over the future of
SMEs, I am in no doubt that this issue is regard-
ed as a priority.
But as a pivotal part of the UKs financial com-
munity, the London Stock Exchange Group
(LSEG) must also take proper responsibility for
doing everything it can to nurture the SMEs
role as the driving force behind national wealth
At the heart of this debate, I believe, is the
need for re-equitisation of the SME funding envi-
ronment, to look at how to maximise the best
opportunities for small companies across seed
capital, business angels to venture capital and
the public markets. This process will only work,
if at every stage each investor is confident that
they have a means of selling their investment
and reinvest in the next generation of entrepre-
neurs, thereby perpetuating the process.
And through the re-equitisation process,
wean the SME sector off an over-reliance on
bank finance, with equity playing a far more sig-
nificant role. Imagine how attractive a prospect
that is to hard-pressed business owners.
If this is to be achieved, there is no doubt
there will be need for changes to the tax treat-
ment of equity finance. Equities, of course, are
taxed at purchase, dividend and sale, in addi-
tion to corporation tax paid on company profits.
By contrast asset classes such as bonds and cash
are subject only to income tax. Reducing tax on
capital gains made from investment in smaller
companies would, we believe, help pull in more
investors. As would the abolishment of stamp
duty for Aim-quoted shares.
But the London Stock Exchange Groups role
in this debate will be judged here more by its
actions not its words. And re-engineering the
London Stock Exchange to ensure its relevance
to both issuers and investors as well as under-
pinning the City of London as a central player in
the worlds capital markets remains a key and
strategic priority.
This is why we hope that our transaction with
LCH.Clearnet is successful, enabling us to create
a new global leader in financial infrastructure
firmly rooted in London, with centres of expert-
ise in Paris and Milan. This will further expand
the LSEs customer partnership model, so that
operations and services for all product trading
and clearing is driven by the needs of our cus-
And SMEs are a core part of our customer
base. Weve had 17 years of success with Aim,
the public market nursery for growth-orientat-
ed companies. Launched 17 years ago, Aim has
brought more than 3,200 companies to market,
pump-priming them with equity capital. As a
result, according to a recent Grant Thornton
study, UK Aim companies contributed 12bn to
UK GDP, supporting 250,000 jobs. When we take
into account the supply chain and the multipli-
er effects, they contributed a further 9bn and
an additional 320,000 workforce.
Not to mention the contribution to Britains
knowledge economy and the importance of this
sector to reinforcing the nations lead in innova-
tive growth areas such as the three tech sectors
high, clean and bio in which the UK has a
global leadership.
Our pioneering move to boost UK corporate
access to fixed income finance is gathering
momentum too. In 2009, we launched our
Order book for Retail Bonds (ORB), the UKs first
retail accessible bond market which has grown
into a new pool of finance opportunities for UK
businesses, both large and small.
For the first time, companies can issue small
tranches of corporate debt, trading them to
both institutional and retail investors on a fully
regulated, cost effective and transparent elec-
tronic market.
There will be more initiatives to come. All of
us in the financial markets and government
must do what we can for the SMEs, creating the
best environment to grow the blue chips of
tomorrow. For the sake of the UK economy.
Xavier Rolet is chief executive officer of the London
Stock Exchange Group.
The Forum
UK Aim companies have
contributed 12bn to GDP,
supporting 250,000 jobs
To revive a weak economy
small firms must be able to
become tomorrows giants
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
Twitter: @cityamforum;
on the web:;
or by email:
Top responses will be reprinted in The Forum.
They may not be
household names
yet, but that is all
about to change
Chinese dragons
fly into the UKs
mobile warzone
SK someone to name the first smart-
phone that comes into their head and
most people will say iPhone. Some
might name a Samsung or even an
HTC. Not many will mention Huawei or ZTE.
But 2012 could be the year of the dragon, with
the Chinese giants preparing to blitz the UK
with a massive product and publicity drive.
ZTE and Huawei the second-largest tele-
coms firm in the world with global revenues of
$28bn (18.11bn) have been steadily growing
their presence in the UK over the past decade.
Huawei signed a deal with BT in 2005 to
deploy its next generation network and trans-
mission equipment and last year it penned a
contract worth hundreds of millions with
Everything Everywhere to upgrade its 2G net-
work. It is now a front-runner to win the con-
tract to upgrade the network for 4G after the
government auctions off new slices of mobile
spectrum later this year.
Huawei had also gifted 50m towards the
development of a mobile network in the
London Underground before the project col-
lapsed. ZTE has its fingers in similar infrastruc-
ture pies, including the rollout of high-speed
broadband to rural areas. Their reach extends
across the pond to the US and throughout
mainland Europe, with a string of announce-
ments over the last 12 months. Its strengthen-
ing grip over global telecoms infrastructure
has prompted some security fears and led to a
US House of Representatives intelligence com-
mittee probe.
But it is the consumer market that looks set
to see the biggest movement this year. ZTE
opened a major network testing and develop-
ment centre in London Docklands last year
and Huawei will open its European design hub
in London in the first quarter of 2012.
Handsets are nothing new to either firm
chances are you have seen, or even owned, a
Huawei or ZTE phone without realising it.
They produce white label devices for other
companies, which is how Taiwanese manufac-
turer HTC started before it became one of the
biggest players in the industry. Oranges budg-
et smartphone the San Francisco, for example,
is a re-branded ZTE Blade one of the biggest
selling smartphones in the world, selling in
the region of 5m last year. The Android-based
device is the most popular handset in China,
averaging 16,000 activations every day. Overall
ZTE shifted 35m phones in the first half of
2011 alone, a 400 per cent increase on the pre-
vious year.
Now they want to emulate that success in
the lucrative, high margin UK market. Huawei
already has two (modestly selling) UK released
own-brand handsets in the Blaze and the
Vision, and ZTE is tipped to unveil one at the
Consumer Electronics Show this week.
Any new products will be backed by the
weight of some of the biggest marketing budg-
ets in the industry, not to mention a formida-
ble lobbying operation.
George Osborne was the guest of honour at
the Orange national business awards in
November. Following his speech, two Huawei
representatives immediately swooped and,
almost with a hand under each armpit,
dragged him off for a meeting with their UK
chief executive Victor Zhang. With influence
like that, Huawei and ZTE are the telecoms
companies to watch this year.
Steve Dinneen is City A.M.s deputy lifestle editor
J.K., not Rowling
Chris Hulme should read J.K.
Galbraith [True owners bear
risks and rewards, last
Thursday]. For over thirty years
he argued that corporations are
run by senior executives mainly
for their own benefit and not
for that of shareholders.
Like Hulme, I hope the Kay
report reveals how unnecessary
share trading is destroying
value for holders of such as unit
trusts and crucially pensions.
Chris Hawkes
I was alarmed to read Corin
Taylors article [Going green isnt
easy when were so far in the red,
last Thursday], because the focus
of the article was to sell the con-
cept of shale gas, while omitting to
point out why it might blow apart
any pretence at de-carbonising
society. Shale gas was originally
considered to be a greener alter-
native to oil, coal and conventional
gas. However, there is now consid-
erable concern that shale gas
could be as bad to the environ-
ment as burning coal. In a letter
by Howarth, Santoro and
Ingraffea it is estimated that 3.6-
7.9 per cent of total well produc-
tion is lost to the atmosphere as
methane. This is 30 per cent
greater than, and perhaps twice as
much over a wells lifetime, as a
conventional gas well. While shale
gas might be a short-term solution
for energy companies, it still does
not look like a long-term solution
for society.
Mark Hoskin
The Forum
HE prevailing
mood across the
City and the UK
as we enter
2012 seems to be one
of caution rather than
This is understand-
able given the current
economic environment. If recent forecasts are
anything to go by we are faced with a year of
slow growth combined with relatively high unem-
ployment and inflation. And that is before we
even ponder what developments are in store for
the interminable Eurozone crisis.
It would be easy to be downbeat over Londons
prospects in the face of such negative headlines.
But I strongly believe that 2012 has all the ingre-
dients to be a truly great year for the capital and
the UK as a whole if we approach it in a positive
The Mayors celebrations for the New Year set
the tone for this with a suitably audacious
pyrotechnic display around the London Eye.
I look forward to hearing his special brand of
verbal pyrotechnics later this week when I host
the London Government Dinner at Mansion House
which of course comes before the real fireworks
of the Mayoral election campaign.
Whoever wins will have thrust upon them
almost immediately unique, unparalleled opportu-
nities to showcase London at its finest. The
Diamond Jubilee and 2012 Olympics both offer a
global platform to highlight Londons culture,
community and connections.
And while the focus during both will be on
London, we should not forget this is a UK-wide
story. If London does well, so too does the UK and
vice versa.
I have seen this for myself both as a
Yorkshireman and Lord Mayor of the City of
London. The old argument about the north-south
divide fails to take into account that jobs and
investment in London mean jobs, contracts,
growth right across the supply chain and right
across the country.
A job in London creates an economic footprint
and a job in financial services, a job in the City,
is responsible for at least one other job in the
wider economy. A thriving Tech City is just one
Financial, professional and business services
accounts for 1.9m jobs across the UK with the
majority of those based outside of Greater
London. These jobs are interdependent; while it is
clear that Leeds, Manchester, Edinburgh and oth-
ers benefit from Londons success in this area so
the reverse is also true. A job in London is not a
job at the expense of a worker in Liverpool or
Llandaff or Livingston.
That is why I welcome the governments plans
to continue to invest in both London and the UKs
infrastructure. Progress on this area cannot be
allowed to stall once the Olympic and Paralympic
spotlight has passed.
I do not doubt that 2012 will be a year of great
challenge, for London, for the United Kingdom and
for the world. But Londons unique attributes, its
unique people and their unique contribution mean
we have the capacity to transform these huge
challenges into a lasting legacy for the nation as a
David Wootton is Lord Mayor of the City of
Enjoy 2012s fireworks:
It is Londons big year
Twitter: @cityamforum
In association with
Wealth Management | Spread Betting
Providers are delivering increasingly
better technology, but dont lose your
head when mobile, writes Philip Salter
Charting on the move is
the smart way to trade
HE cyberspace race of mobile
trading technology continues
apace, with GFT announcing
the release of an iPad version
of its DealBook trading platform.
GFTs iPad offering includes full-
screen charting, real-time quotes
and real-time news via CNBC. The
many and varied ways a spread bet-
ting provider can help trading on
the move has become a key way
companies differentiate their prod-
uct from that of their competitors,
but for traders it can require a
slightly different mindset.
Although it has been possible to
trade markets using mobile devices
since 2005, the pioneers had to
develop bespoke mobile platforms
customised to each handset,
explains Alastair McCaig of
WorldSpreads. He says: Not until
the launch of the smartphone did
mobile trading truly come of age.
David Jones of IG Index says the
iPhone really saw mobile trading
move to the next level: Before the
iPhone, mobile trading accounted
for less than five per cent of month-
ly trade volumes since we
launched our iPhone app in 2010
and the iPad in 2011 it has shot up
to around 15 per cent and is still
growing. Around 25 per cent of IG
clients have used a mobile app in
recent months, whether its for plac-
ing a trade, or moving a stop, or just
checking open positions. Joshua
Raymond of City Index notes that
the percentage of clients trading on
their mobiles has increased dramat-
ically from less than three per cent
to in excess of 20 per cent, with one
in three clients now actively using
their mobiles to trade, compared to
less than 1 in 10 before their iPhone
app launch. Manoj Ladwa of ETX
Capital also notes the importance of
the iPhone (34 per cent of all visits),
although Android browsers have
now overtaken Apple (35 per cent of
all visits).
David Morrison of GFT notes that
mobile trading is now becoming a
significant tool in the active traders
armoury. He says: Many more
traders now use mobile devices as
their primary access point for trad-
ing than they did 12 months ago
this is clearly an indication that
technology has advanced and
mobile platforms are no longer sup-
porting acts to web or download
platforms. He adds: Were busy
people gone are the days when
traders are stuck in front of multi-
ple screens glued to their positions.
He believes clients need and
demand the flexibility and accessi-
bility to trade with the same level of
sophistication, with the same suite
of tools, wherever we are.
Spread betting providers have
their money on mobile trading
becoming increasingly important.
McCaig predicts, with the numbers
growing steadily each year, there is
no reason why we wouldnt expect
to see 50 per cent of all trades to be
made using a mobile device by 2015.
Greg White, director of Accendo
Markets, says the recent advances
in technology faster chips, bigger
screens, better apps have made the
experience of trading a whole
lot easier than before. Craig
Inglis of CMC Markets says
right now around 30 per cent
of all CMC client trades are
via a mobile device. He
expects this figure to keep
on increasing throughout
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Apple, the Apple logo, and iPhone are trademarks of Apple Inc., registered in
the U.S. and other countries. App Store is a service mark of Apple Inc.
CFD Broker
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LAYING ball on Tuesday will be
Goals Soccer Centre letting
their fans have a peek at their
post close trading update for the
year. After seeing a sharp decline
when the outdoor football centre
reported a softer than expected trad-
ing period last time, can they move up
the league with a better than expected
update this time and get the pes-
simistic brokers back onside? Capital
Spreads quotes a price of 91.8p-96.2p.
We are seeing a surge in gold on
the back of mounting tension in Iran,
which is threatening to blockade a
major oil checkpoint. The yellow
metal is trading inside a bullish chan-
nel which is its longest winning
stretch since October. The Iranian sit-
uation along with the European debt
risk should support the further poten-
tial upside to gold. Capital Spreads
quotes the yellow metal at $1,621.5-
Kesa Electricals, parent company
of Comet, saw its shares fall faster
than Santa down a chimney last year,
losing some 60 per cent to hit the
lows of 2008 around 60p. The shares
dashed, danced, pranced but ulti-
mately were blitzed, with more red on
the charts than Rudolphs nose. It will
take more than cupid to find love for
this stock this year, as a recovery is
going to be a real challenge. Spread
Co offers a spread on Kesa of 66.32p-
The unofficial start of fourth quar-
ter earnings is kicked off by Alcoa in
the US today. With basic materials
generally a primary indicator of the
state of the global economy, the
worlds leading producer of primary
aluminium could well set the tone for
the first quarter of 2012. The effects
of slowing economic growth and
increasing concern over the EU debt
woes and the resulting market uncer-
tainty has driven lower results in
2011. While revenues are expected to
show an increase on a like-for-like
basis from the same quarter last year,
its likely that the slide in aluminium
prices may impact the profitability of
the company. CMC Markets quotes
Alcoa at $9.351-$9.372.
The retail sector in the UK will also
be in focus as several retail outlets
give trading updates on the Christmas
period. Sainsburys is the first to
report today, with Marks & Spencer,
Debenhams and Tesco later in the
week. The prognosis for the retail sec-
tor is fairly down-beat, particularly if
the disappointing results from Next
last week are anything to go by. CMC
offers a spread on Sainsburys of
298.3p-299.11p, on Marks & Spencer
of 311.32p-311.89p, on Debenhams of
58.62p-58.921p and Tesco of
Philip Salter
IG Indexs iPad
offerings (page
left, bottom)
City Index on
iPhone, HTC and
GFTs new iPad
app (left and
the next few years, and
with the release of new
mobile computers
between smartphone
and tablets, he expects
greater functionality and
power in your pocket.
There are few markets as
competitive and dynamic
as mobile technology, as
Samsungs surging smart-
phone sales, released last
week, so clearly show. In
the words of Bob Dylan:
For the loser now, will be
later to win, for the times
they are a-changin.
White notes: The fact
that the technology is frag-
mented is challenging, but its worth-
while for us making sure we have the
right technology and that its in con-
stant development its what our
clients want. Although he thinks
there are great mobile trading plat-
forms available on the market, he
readily acknowledges that functional-
ity has yet to catch up from desktop
to mobile. White also points out that
mobile signal quality remains a chal-
lenge. In fact, he wouldnt mind bet-
ting that the proportion of mobile
business would increase significantly
if mobile signal strength (3G) was
improved. He says this is increasingly
important, as with every tool in the
trading arsenal, to understand how it
can affect your trading experience
and psychology. Raymond says that
the psychological aspect of trading is
significantly relevant to mobile trad-
ing, perhaps more so than other
forms of dealing: While having 24-
hour, uninterrupted access to your
account has benefits, it can tempt
traders to deviate away from their
original strategies with trades of
impulse. Failure to counteract the
temptation of emotional trades or
worse, inebriated gambles will can-
cel out all the benefits of mobile plat-
forms. But if you stick to clear and
concise plans, mobile trading could
help your account move in the right
significant as the popularity of
tablets rises: This is very much a
growing market, and one in which
we are keen to continue to make
progress. Despite the challenges, any
provider not moving forward on
mobile trading technology is being
left behind. Jones notes that it is a
major commitment at IG, with a 20-
man team dedicated to the ongoing
development of the various mobile
With the providers doing all the hard
work, it is not enough though to sim-
ply sit back, plug in and go mobile.
Raymond has a word of warning for
traders: While mobile trading can
offer substantial advantages, it is
AIR LIQUIDE...............94.90 -0.25 100.65 80.90
ALLIANZ .....................73.88 -0.98 108.85 56.16
ANHEUS-BUSCH INBEV46.42-0.58 48.35 33.85
ARCELORMITTAL......14.74 -0.28 28.55 10.47
AXA...............................9.80 -0.09 16.16 7.88
BANCOSANTANDER ..5.45 -0.08 9.20 5.05
BASF SE .....................55.92 -0.83 70.22 42.19
BAYER.........................51.77 -0.50 59.44 35.36
BBVA.............................6.23 -0.07 9.17 4.94
BMW............................55.55 -0.60 73.85 43.49
BNP PARIBAS ............28.46 -0.55 59.93 22.72
CARREFOUR..............16.61 -0.21 31.98 14.66
CRH PLC.....................14.63 -0.45 17.40 10.28
DAIMLER ....................36.47 -0.42 59.09 29.02
DANONE .....................48.27 -0.17 53.16 41.92
DEU.BOERSE OFFRE39.70 0.23 55.75 35.46
DEUTSCHE BANK......27.00 -0.97 48.70 20.79
DEUTSCHE TELEKOM 8.86 -0.05 11.38 7.88
E.ON............................17.01 -0.03 25.54 12.50
ENEL .............................3.09 -0.00 4.86 2.78
ENI ...............................16.34 0.09 18.66 11.83
FRANCE TELECOM ...11.79 0.00 16.65 11.12
GDF SUEZ...................20.67 -0.12 30.05 17.65
GENERALIASS. .........11.65 -0.05 17.05 10.34
IBERDROLA .................4.59 -0.03 6.30 4.16
INDITEX.......................63.05 0.13 69.40 50.92
INGGROEP CVA..........5.46 -0.05 9.50 4.21
INTESA SANPAOLO.....1.14 -0.05 2.47 0.85
KON.PHILIPS ELECTR15.65 0.05 25.45 12.01
L'OREAL .....................81.18 -0.24 91.24 68.83
LVMH.........................108.90 -1.05 132.65 94.16
MUNICH RE ................93.28 -1.29 126.00 77.80
NOKIA...........................4.16 0.27 8.49 3.33
REPSOL YPF ..............23.33 -0.08 24.90 17.31
RWE.............................28.38 0.35 55.70 21.15
SAINT-GOBAIN...........29.17 -0.51 47.64 26.07
SANOFI .......................56.25 0.75 57.42 42.85
SAP .............................42.20 0.05 46.15 32.88
SCHNEIDER ELECTRIC42.43 -0.08 61.83 35.00
SIEMENS.....................76.12 0.23 99.39 62.13
SOCIETE GENERALE15.57 -0.52 52.70 14.32
TELECOMITALIA.........0.81 -0.01 1.16 0.70
TELEFONICA..............13.05 -0.08 18.75 12.50
TOTAL .........................39.99 0.13 44.55 29.40
UNIBAIL-RODAMCOSE132.60-1.85162.95 123.30
UNICREDIT ...................3.98 -0.50 20.25 3.91
UNILEVER CVA ..........26.32 -0.66 27.16 20.90
VINCI ...........................33.74 -0.33 45.48 28.46
VIVENDI ......................16.55 -0.14 22.07 14.10
VOLKSWAGEN VORZ124.00 -2.20 152.20 86.40
Price Chg High Low Price Chg High Low
3M.................................83.37 -0.43 98.19 68.63
ABBOTT LABS............55.86 -0.51 56.84 45.07
ALCOA...........................9.16 -0.20 18.47 8.45
ALTRIA GROUP...........28.72 -0.11 30.40 23.20
AMAZON.COM...........182.61 5.00 246.71 160.59
AMERICAN EXPRESS 48.27 -0.53 53.80 41.30
AMGEN INC.................64.76 0.35 65.19 47.66
APPLE........................422.40 4.37 426.70 310.50
AT&T.............................29.68 -0.72 31.94 27.20
BANK OFAMERICA......6.18 -0.13 15.31 4.92
BERKSHIRE HATAWB76.39 -0.54 87.65 65.35
BOEING CO.................73.98 0.45 80.65 56.01
BRISTOL MYERS SQUI34.22 0.06 35.44 20.05
CATERPILLAR.............95.76 0.24 116.55 67.54
CHEVRON..................108.31 -0.79 110.99 86.68
CISCOSYSTEMS ........18.85 -0.07 22.34 13.30
CITIGROUP..................28.55 0.04 51.50 21.40
COCA-COLA................68.93 -0.44 71.77 61.29
COLGATE PALMOLIVE89.80 -0.34 94.89 74.86
CONOCOPHILLIPS .....72.66 -0.57 81.80 58.65
CVS/CAREMARK ........41.46 -0.29 41.85 31.30
DU PONT(EI)DE NMR.46.04 -0.66 57.00 37.10
EXXON MOBIL.............85.12 -0.64 88.23 63.47
GENERAL ELECTRIC .18.65 0.10 21.65 14.02
GOOGLE A.................652.73 -6.28 670.25 473.02
HEWLETTPACKARD..26.40 -0.10 49.39 19.92
HOME DEPOT..............43.20 0.11 43.30 28.13
IBM.............................182.54 -2.12 194.90 146.73
INTEL CORP................25.25 -0.15 26.78 19.16
J.P.MORGAN CHASE..35.36 -0.32 48.36 27.85
JOHNSON & JOHNSON64.83 -0.57 68.05 57.50
KRAFTFOODS A ........37.55 -0.19 38.05 24.30
MC DONALD'S CORP100.60 0.77 101.59 72.14
MERCK AND CO.NEW38.47 -0.27 39.00 29.47
MICROSOFT ................28.11 0.43 29.46 23.65
OCCID.PETROLEUM..95.77 -0.38 117.89 66.36
ORACLE CORP ...........26.93 0.34 36.50 24.72
PEPSICO......................65.39 -0.83 71.89 58.50
PFIZER.........................21.57 -0.03 22.00 16.63
PHILIP MORRIS INTL..77.08 -1.13 79.96 55.85
PROCTER AND GAMBLE66.36-0.16 67.72 56.57
QUALCOMMINC.........56.16 0.10 59.84 45.98
SCHLUMBERGER.......67.78 -0.29 95.64 54.79
TRAVELERS CIES.......59.35 0.02 64.17 45.97
UNITED TECHNOLOGIE73.90-0.43 91.83 66.87
UNITEDHEALTH GROUP52.780.19 53.50 37.29
VERIZON COMMS.......38.33 -0.61 40.48 32.28
WAL-MARTSTORES...59.00 -0.42 61.06 48.31
WALTDISNEY CO.......39.91 0.41 44.34 28.19
WELLS FARGO& CO .28.94 -0.08 34.25 22.58
Price Chg High Low Price Chg High Low
FTSE 100 . . . . . . . . . . . . . . 5649.68 25.42 0.45
FTSE 250 INDEX . . . . . . . 10245.86 101.22 1.00
FTSE UK ALL SHARE ....2897.03 14.79 0.51
FTSE AIMALL SH . . . . . . . . 712.48 5.63 0.80
DOWJONES INDUS 30 ..12359.92 -55.78 -0.45
S&P 500 . . . . . . . . . . . . . . . 1277.81 -3.25 -0.25
NASDAQCOMPOSITE ...2674.22 4.36 0.16
FTSEUROFIRST300 .....1013.73 0.34 0.03
NIKKEI 225 . . . . . . . . . . . . . 8390.35 -98.36 -1.16
DAX 30PERFORMANCE..6057.92 -38.07 -0.62
CAC 40 . . . . . . . . . . . . . . . . 3137.36 -7.55 -0.24
SHANGHAISE INDEX ....2163.40 14.94 0.70
HANG SENG. . . . . . . . . . . 18593.06 -220.35 -1.17
S&P/ASX 20INDEX ......2480.10 -22.20 -0.89
ASX ALL ORDINARIES ...4164.50 -32.10 -0.76
BOVESPA SAOPAOLO..58573.96 27.88 0.05
ISEQOVERALL INDEX ...2889.87 -2.65 -0.09
STRAITS TIMES . . . . . . . . . 2715.59 2.57 0.09
IGBM. . . . . . . . . . . . . . . . . . . 874.79 1.65 0.19
SWISS MARKETINDEX...6013.83 -12.74 -0.21
Price Chg %chg Price Chg %chg Price Chg %chg
LONGDONCEFIXAM.............................................1621.00 6.50
SILVERLDNFIXAM ....................................................29.12 0.12
MAPLELEAF1OZ ......................................................31.18 0.49
LONPLATINUMAM .................................................1417.00 -3.00
LONPALLADIUMAM.................................................633.00 -14.00
ALUMINIUMCASH...................................................2003.00 -48.00
COPPERCASH........................................................7470.00 -181.50
LEADCASH.............................................................2015.00 -27.50
NICKELCASH........................................................18580.00 -120.00
TINCASH ..............................................................19410.00 -240.00
ZINCCASH..............................................................1835.00 -9.00
BRENTSPOTINDEX..................................................113.59 1.03
SOYA.......................................................................1201.25 -20.25
COCOA....................................................................2028.00 -47.00
COFFEE ....................................................................219.55 -7.15
KRUG ......................................................................1682.50 19.40
WHEAT ......................................................................152.25 1.50
LON GD ONCE FIX AM.........................................................1621.00 6.50
SILVER LDN FIX AM.................................................................29.12 0.12
MAPLE LEAF 1 OZ ...................................................................31.18 0.49
LON PLATINUMAM..............................................................1417.00 -3.00
LON PALLADIUMAM .............................................................633.00 -14.00
ALUMINIUMCASH................................................................2003.00 -48.00
COPPER CASH.....................................................................7470.00 -181.50
LEAD CASH ..........................................................................2015.00 -27.50
NICKEL CASH.....................................................................18580.00 -120.00
TIN CASH ............................................................................19410.00 -240.00
ZINC CASH............................................................................1835.00 -9.00
BRENT SPOT INDEX ..............................................................113.59 1.03
SOYA......................................................................................1201.25 -20.25
COCOA..................................................................................2028.00 -47.00
COFFEE...................................................................................219.55 -7.15
KRUG.....................................................................................1682.50 19.40
WHEAT.....................................................................................152.25 1.50
BAE Systems . . . . . .287.8 0.8 361.1 248.1
Chemring Group. . . .402.5 8.3 736.5 368.8
Cobham . . . . . . . . . . .183.8 3.5 236.5 165.9
Meggitt . . . . . . . . . . . .357.0 0.4 397.6 304.9
QinetiQ Group. . . . . .131.2 0.8 137.4 101.5
RoIIs-Royce Group. .755.5 1.5 762.5 557.5
Senior. . . . . . . . . . . . .177.2 0.9 190.6 132.6
UItra EIectronics . . .1472.0 38.0 1830.0 1305.0
GKN . . . . . . . . . . . . . .191.4 1.3 245.0 157.0
BarcIays. . . . . . . . . . .186.4 2.8 333.6 138.9
HSBC HoIdings. . . . .498.2 0.6 730.9 463.5
LIoyds Banking Gr . . .27.1 0.8 69.6 21.8
RoyaI Bank of Sco . . .20.5 0.2 49.0 17.3
Standard Chartere .1421.0 -14.0 1759.5 1169.5
AG Barr . . . . . . . . . .1223.0 7.0 1395.0 1031.0
Britvic. . . . . . . . . . . . .332.2 2.2 476.2 289.9
Diageo . . . . . . . . . . .1414.5 -0.5 1428.0 1112.0
SABMiIIer. . . . . . . . .2332.5 2.0 2366.5 1979.0
AZ EIectronic Mat . . .261.0 10.1 338.1 206.1
Croda Internation . .1825.0 7.0 2081.0 1456.0
EIementis. . . . . . . . . .135.1 -0.9 187.4 107.5
Johnson Matthey . .1918.0 28.0 2119.0 1523.0
Victrex . . . . . . . . . . .1132.0 22.0 1590.0 1025.0
YuIe Catto & Co. . . . .169.0 0.6 253.0 148.0
C/$ 1.2729 0.0001
C/ 0.8250 0.0001
C/ 97.925 0.0250
/C 1.2122 0.0001
/$ 1.5429 0.0092
/ 118.75 0.0020
RPC Group . . . . . . . .377.3 9.5 384.8 231.5
Smiths Group . . . . . .942.0 5.5 1429.0 869.5
Brown (N.) Group . . .239.3 7.9 311.2 227.0
Carpetright . . . . . . . . .513.0 19.9 835.5 375.0
Debenhams . . . . . . . . .58.6 0.9 74.8 51.2
Dignity . . . . . . . . . . . .831.5 21.5 854.5 648.5
Dixons RetaiI . . . . . . . .9.6 -0.0 23.7 9.4
DuneImGroup. . . . . .451.0 12.5 527.5 383.9
HaIfords Group . . . . .292.6 3.9 437.5 268.6
Home RetaiI Group. . .92.2 2.6 235.0 72.5
Inchcape . . . . . . . . . .297.6 3.1 425.4 268.1
JD Sports Fashion . .660.0 67.5 1030.0 570.0
Kesa EIectricaIs . . . . .67.0 0.4 164.0 60.2
Kingfisher . . . . . . . . .249.7 2.3 287.1 217.0
Marks & Spencer G. .310.7 4.5 402.2 301.8
Next . . . . . . . . . . . . .2579.0 -35.0 2810.0 1868.0
Sports Direct Int . . . .230.0 5.0 266.2 159.0
WH Smith. . . . . . . . . .527.0 2.0 558.0 433.8
Smith & Nephew. . . .607.0 1.0 742.0 521.0
Synergy HeaIth . . . . .866.0 10.5 981.0 808.0
Barratt DeveIopme . . .92.9 3.0 119.0 67.5
BeIIway. . . . . . . . . . . .686.5 15.0 776.5 540.5
BerkeIey Group Ho.1256.0 21.0 1360.0 884.5
BaIfour Beatty . . . . . .273.6 0.9 357.3 214.6
CRH . . . . . . . . . . . . .1216.0 -26.0 1700.0 1053.0
GaIIiford Try. . . . . . . .464.5 1.0 530.0 307.5
Kier Group. . . . . . . .1403.0 8.0 1458.0 1097.0
Drax Group . . . . . . . .556.0 4.5 581.5 371.9
SSE. . . . . . . . . . . . . .1285.0 -6.0 1423.0 1159.0
Domino Printing S . .525.5 -4.5 705.0 434.3
HaIma . . . . . . . . . . . . .336.9 0.5 429.6 306.3
Laird . . . . . . . . . . . . . .149.4 1.3 207.0 127.9
Morgan CrucibIe C . .276.8 5.4 357.1 224.0
Oxford Instrument . .978.5 0.0 1010.0 600.5
Renishaw. . . . . . . . .1049.0 30.0 1886.0 800.0
Spectris . . . . . . . . . .1327.0 25.0 1679.0 1039.0
Aberforth SmaIIer . . .513.5 4.5 714.0 494.0
AIIiance Trust . . . . . .347.5 2.0 392.7 310.2
Bankers Inv Trust . . .387.0 3.1 428.0 346.5
BH GIobaI Ltd. GB .1187.0 2.0 1212.0 1058.0
BH GIobaI Ltd. US. . . .11.9 0.1 12.2 10.4
BH Macro Ltd. EUR. . .19.8 -0.1 20.2 15.9
BH Macro Ltd. GBP 2042.0 -10.0 2078.0 1661.0
BH Macro Ltd. USD. . .19.9 0.1 20.2 15.9
BIackRock WorId M .631.5 0.5 815.5 574.5
BIueCrest AIIBIue . . .167.9 0.5 176.2 162.4
British Assets Tr . . . .119.4 3.3 140.5 109.0
British Empire Se . . .420.1 2.1 533.0 404.0
CaIedonia Investm .1401.0 6.0 1908.0 1337.0
City of London In . . .287.0 0.8 306.9 257.0
Dexion AbsoIute L . .136.7 -0.1 151.0 130.0
Edinburgh Dragon . .220.4 0.3 261.6 201.4
Edinburgh Inv Tru. . .477.4 1.4 492.2 414.9
EIectra Private E . . .1422.0 -8.0 1755.0 1287.0
F&C Inv Trust . . . . . .290.7 1.9 327.9 261.5
FideIity China Sp. . . . .73.2 0.8 119.5 70.0
FideIity European . . .987.0 -4.0 1287.0 912.0
HeraId Inv Trust. . . . .466.0 1.9 545.5 419.0
HICL Infrastructu. . . .118.3 -0.2 121.3 112.7
Impax Environment . .95.0 0.0 128.9 88.5
John Laing Infras . . .109.0 -0.3 109.5 103.4
JPMorgan American.881.5 16.5 916.0 721.5
JPMorgan Asian In . .185.0 0.2 247.3 170.1
JPMorgan Emerging.517.0 3.0 632.5 480.1
JPMorgan European.652.5 3.5 983.5 624.0
JPMorgan Indian I. . .325.0 3.0 482.9 313.1
JPMorgan Russian .488.5 5.0 755.0 415.1
Law Debenture Cor. .339.0 1.0 385.0 321.0
MercantiIe Inv Tr . . . .865.0 5.0 1137.0 823.0
Merchants Trust . . . .371.4 2.4 431.8 341.5
Monks Inv Trust . . . .309.0 1.8 367.9 298.1
Murray Income Tru . .628.0 6.0 673.0 568.0
Murray Internatio . . .937.0 9.0 991.5 818.5
PerpetuaI Income . . .258.8 4.0 276.0 236.5
PersonaI Assets T .33850.0 110.0 34060.030210.0
PoIar Cap TechnoI . .329.0 -0.4 391.2 299.5
RIT CapitaI Partn. . .1209.0 8.0 1360.0 1173.0
Scottish Inv Trus. . . .457.9 1.5 524.0 417.0
Scottish Mortgage . .598.0 6.0 781.0 565.0
SVG CapitaI . . . . . . . .210.0 1.0 279.8 165.1
TempIe Bar Inv Tr . . .873.0 18.5 952.0 791.0
TempIeton Emergin .550.0 4.0 684.5 497.0
TR Property Inv T . . .138.3 -0.2 206.1 136.2
TR Property Inv T . . . .61.3 -0.1 94.0 59.8
Witan Inv Trust . . . . .450.9 2.3 533.0 401.5
3i Group. . . . . . . . . . .178.3 1.5 337.8 166.9
3i Infrastructure . . . .120.5 -0.3 124.0 113.1
Aberdeen Asset Ma .216.6 1.5 240.0 167.8
Ashmore Group . . . .321.3 -9.6 420.0 301.5
Brewin DoIphin Ho . .141.5 -0.5 185.4 113.7
CameIIia. . . . . . . . . .9510.0-277.510950.08800.0
CharIes TayIor Co. . .125.0 -2.5 165.0 115.6
City of London Gr . . . .64.0 0.0 93.6 61.3
City of London In . . .334.3 -1.3 458.3 304.3
CIose Brothers Gr. . .598.5 -4.5 888.5 590.0
CoIIins Stewart H . . . .90.5 0.5 91.3 48.5
F&C Asset Managem .60.8 -1.3 92.9 56.1
Hargreaves Lansdo .424.0 -6.0 646.5 402.5
HeIphire Group . . . . . . .2.0 0.1 17.4 1.4
Henderson Group. . .100.7 -0.2 173.1 95.1
Highway CapitaI . . . . .12.5 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .319.3 -9.8 570.5 311.6
IG Group HoIdings . .492.1 2.1 528.0 393.6
Intermediate Capi . . .232.2 0.9 360.3 197.9
InternationaI Per . . . .160.0 -12.0 388.8 156.5
InternationaI Pub. . . .119.5 -0.7 121.5 108.6
Investec . . . . . . . . . . .337.3 1.9 534.0 318.4
IP Group. . . . . . . . . . . .79.8 1.0 80.8 31.9
Jupiter Fund Mana . .196.0 -11.4 337.3 184.9
Liontrust Asset M . . . .74.0 0.0 87.5 57.9
LMS CapitaI . . . . . . . . .55.0 0.5 64.8 48.0
London Finance & . . .23.5 0.0 23.5 19.0
London Stock Exch .781.0 -3.0 1076.0 756.5
Lonrho . . . . . . . . . . . . . .9.7 -0.0 19.8 8.9
Man Group. . . . . . . . .112.7 -10.3 311.0 110.8
Paragon Group Of . .178.5 5.0 206.1 134.6
Provident Financi . . .935.0 20.0 1124.0 869.5
Rathbone Brothers.1035.0 -9.0 1257.0 977.0
Record . . . . . . . . . . . . .12.9 0.0 36.3 12.5
RSM Tenon Group . . . .8.5 -0.3 66.3 8.5
Schroders . . . . . . . .1295.0 6.0 1922.0 1183.0
Schroders (Non-Vo.1061.0 -8.0 1554.0 970.0
TuIIett Prebon . . . . . .262.3 -9.5 428.6 260.6
WaIker Crips Grou . . .45.0 0.0 51.5 43.0
BT Group . . . . . . . . . .196.0 1.1 204.1 161.0
CabIe & WireIess . . . .36.7 1.0 51.2 31.3
CabIe & WireIess . . . .17.5 0.2 76.9 14.2
COLT Group SA . . . . .87.5 1.1 156.2 84.1
KCOM Group. . . . . . . .68.5 0.9 84.0 57.5
TaIkTaIk TeIecom . . .135.3 0.3 165.2 119.8
TeIecomPIus. . . . . . .706.0 4.0 802.0 433.0
Booker Group . . . . . . .75.3 2.8 80.0 54.5
Greggs . . . . . . . . . . . .515.5 0.0 550.5 445.0
Morrison (Wm) Sup. .311.3 -4.7 328.0 262.7
Ocado Group. . . . . . . .58.1 0.9 285.0 52.9
Sainsbury (J) . . . . . . .298.8 0.8 391.5 263.5
Tesco . . . . . . . . . . . . .390.9 -3.0 430.0 356.3
Associated Britis. . .1119.0 6.0 1150.0 940.0
Cranswick . . . . . . . . .748.5 22.0 882.0 588.5
Dairy Crest Group. . .326.3 -3.8 410.4 318.8
Devro . . . . . . . . . . . . .251.0 0.0 296.9 223.5
Tate & LyIe. . . . . . . . .705.5 -0.5 720.5 520.0
UniIever . . . . . . . . . .2123.0 -47.0 2189.0 1793.0
Mondi . . . . . . . . . . . . .472.9 11.3 664.0 413.5
Centrica . . . . . . . . . . .287.3 -3.5 345.8 278.8
InternationaI Pow . . .338.5 0.8 436.6 279.4
NationaI Grid . . . . . . .609.5 -3.5 649.5 530.0
Pennon Group. . . . . .720.5 2.0 737.5 584.5
Severn Trent . . . . . .1534.0 2.0 1600.0 1368.0
United UtiIities . . . . .613.0 -5.5 637.0 543.5
Cookson Group . . . . .536.0 3.5 724.5 395.8
DS Smith . . . . . . . . . .198.0 0.7 266.2 164.4
Rexam . . . . . . . . . . . .360.8 0.2 400.0 299.8
Price Chg High Low
Bovis Homes Group.408.0 -0.5 499.6 326.5
Persimmon . . . . . . . .481.0 8.0 518.5 374.0
Reckitt Benckiser . .3273.0 -1.0 3578.0 3015.0
Redrow. . . . . . . . . . . .117.0 0.5 137.4 103.5
TayIor Wimpey . . . . . . .37.4 0.4 43.3 28.7
Bodycote . . . . . . . . . .276.6 5.2 397.7 225.6
Charter Internati . . . .960.0 15.5 960.0 538.5
Fenner . . . . . . . . . . . .415.5 10.3 422.5 280.0
IMI . . . . . . . . . . . . . . . .795.5 5.0 1119.0 636.5
MeIrose . . . . . . . . . . .348.6 1.7 365.4 268.0
Northgate. . . . . . . . . .195.0 4.1 346.7 186.8
Rotork . . . . . . . . . . .1918.0 64.0 1979.0 1501.0
Spirax-Sarco Engi. .1876.0 18.0 2063.0 1649.0
Weir Group . . . . . . .2146.0 55.0 2218.0 1375.0
Evraz . . . . . . . . . . . . .385.8 -0.7 412.0 315.0
Ferrexpo. . . . . . . . . . .295.9 5.4 499.0 238.7
TaIvivaara Mining . . .267.0 9.8 622.0 195.2
BBAAviation . . . . . . .179.2 3.6 240.8 156.0
Stobart Group Ltd. . .119.5 0.4 163.6 112.0
AdmiraI Group. . . . . .844.5 -21.5 1754.0 787.0
AmIin . . . . . . . . . . . . .321.3 6.5 427.0 270.6
Huntsworth . . . . . . . . .33.9 -0.4 85.0 33.6
Informa. . . . . . . . . . . .360.5 4.7 461.1 313.9
ITE Group. . . . . . . . . .205.6 4.6 258.2 157.7
ITV. . . . . . . . . . . . . . . . .71.4 1.9 93.5 51.7
Johnston Press. . . . . . .6.3 0.1 12.8 4.1
MecomGroup . . . . . .206.3 -1.3 310.0 134.5
Moneysupermarket. .103.9 1.9 120.4 76.3
Pearson . . . . . . . . . .1229.0 17.0 1234.0 983.0
PerformGroup . . . . .210.0 0.0 234.5 150.0
Reed EIsevier . . . . . .509.0 -1.0 590.5 461.3
Rightmove . . . . . . . .1318.0 53.0 1408.0 770.0
STV Group. . . . . . . . . .76.3 -6.4 168.0 74.5
Tarsus Group . . . . . .136.8 0.5 165.0 119.5
Trinity Mirror . . . . . . . .50.0 1.0 93.0 37.5
UBM . . . . . . . . . . . . . .470.0 -1.4 725.0 416.0
UTV Media . . . . . . . . .101.5 -1.5 150.0 92.5
WiImington Group . . .84.5 0.0 183.0 82.0
WPP . . . . . . . . . . . . . .690.0 21.0 846.5 578.0
YeII Group . . . . . . . . . . .5.1 0.0 14.8 3.4
African Barrick G . . .450.3 7.5 616.5 393.5
AIIied GoId Minin . . .157.8 7.6 281.3 34.4
AngIo American . . .2469.0 14.0 3437.0 2138.5
AngIo Pacific Gro . . .271.1 4.9 369.3 237.9
Antofagasta. . . . . . .1270.0 7.0 1571.0 900.5
Aquarius PIatinum . .162.7 -0.1 419.0 149.0
BeazIey. . . . . . . . . . . .134.4 3.4 139.2 109.6
CatIin Group Ltd. . . .391.2 3.9 421.4 334.0
Hiscox Ltd. . . . . . . . . .373.8 4.5 424.7 340.5
Jardine LIoyd Tho. . .673.0 3.0 764.5 576.0
Lancashire HoIdin . . .690.5 0.5 774.5 532.5
RSA Insurance Gro. .108.0 1.1 143.5 99.6
Aviva. . . . . . . . . . . . . .301.5 -2.0 477.9 275.3
LegaI & GeneraI G . . .104.2 1.2 123.8 89.8
OId MutuaI . . . . . . . . .139.2 1.7 144.8 98.1
Phoenix Group HoI . .542.5 12.5 688.0 451.1
PrudentiaI . . . . . . . . .637.5 4.0 777.0 509.0
ResoIution Ltd. . . . . .250.3 -4.3 316.1 229.5
St James's PIace. . . .329.5 9.4 376.0 272.5
Standard Life. . . . . . .200.9 -1.0 244.7 172.0
4Imprint Group . . . . .218.4 -3.1 295.0 200.0
Aegis Group . . . . . . .141.1 1.1 158.5 115.7
BIoomsbury PubIis. . .93.6 -1.4 138.0 91.3
British Sky Broad . . .711.5 -9.5 850.0 618.5
Centaur Media. . . . . . .32.5 -0.6 73.0 32.2
Chime Communicati.179.5 0.5 298.5 163.0
Creston . . . . . . . . . . . .65.5 -0.8 121.0 64.0
DaiIy MaiI and Ge . . .396.2 3.6 594.5 343.4
Euromoney Institu . .651.5 6.5 736.0 522.5
Future. . . . . . . . . . . . . . .8.8 0.3 30.0 8.5
Haynes PubIishing . .225.0 5.0 257.0 210.0
BHP BiIIiton. . . . . . .1949.0 -2.0 2631.5 1667.0
Bumi . . . . . . . . . . . . . .870.0 0.00 880.5 859.5
Centamin (DI) . . . . . . . .81.8 3.3 173.1 78.5
Eurasian NaturaI . . .704.5 9.5 1125.0 522.0
FresniIIo. . . . . . . . . .1661.0 41.0 2150.0 1296.0
GemDiamonds Ltd. .186.7 -0.3 306.0 179.8
GIencore Internat . . .395.3 1.0 531.1 348.0
HochschiId Mining . .411.9 19.5 680.0 365.9
Kazakhmys . . . . . . . .995.0 13.5 1671.0 730.0
Kenmare Resources. .47.5 2.4 59.9 29.0
Lonmin. . . . . . . . . . . .992.5 17.5 1910.0 941.0
New WorId Resourc .455.9 -3.8 1060.0 409.4
PetropavIovsk . . . . . .671.0 17.5 1123.0 543.5
PoIymetaI Interna . .1126.0 10.0 1130.0 877.0
RandgoId Resource 7000.0 40.0 7555.0 4425.0
Rio Tinto . . . . . . . . .3313.5 -7.5 4712.0 2712.5
Vedanta Resources 1006.0 20.5 2518.0 928.0
Xstrata . . . . . . . . . . .1016.0 -5.5 1550.0 764.0
Inmarsat . . . . . . . . . . .422.6 6.0 719.5 389.3
Vodafone Group . . . .179.5 2.2 182.8 155.1
Genesis Emerging . .461.7 -0.8 562.0 424.0
Afren. . . . . . . . . . . . . .106.1 0.7 171.2 73.6
BG Group. . . . . . . . .1457.0 26.5 1564.5 1144.0
BP. . . . . . . . . . . . . . . .477.1 3.0 509.0 363.2
Cairn Energy . . . . . . .263.9 1.4 469.7 257.8
EnQuest . . . . . . . . . . .104.0 2.7 158.5 85.7
Essar Energy . . . . . .170.7 -5.5 560.0 168.6
ExiIIon Energy. . . . . .275.2 2.7 469.7 184.2
Heritage OiI . . . . . . . .193.5 4.3 486.0 160.0
Ophir Energy. . . . . . .318.0 -0.8 330.8 184.5
Premier OiI. . . . . . . . .392.4 17.5 535.0 310.0
RoyaI Dutch SheII . .2385.0 35.0 2390.0 1883.5
RoyaI Dutch SheII . .2478.5 41.5 2479.0 1890.5
SaIamander Energy .227.5 11.8 317.6 182.3
Soco Internationa . . .290.4 -0.5 400.0 278.0
TuIIow OiI . . . . . . . . .1408.0 15.0 1493.0 945.5
Amec . . . . . . . . . . . . .963.0 29.5 1251.0 740.5
Hunting . . . . . . . . . . .777.5 15.0 817.0 530.0
Kentz Corporation . .450.0 4.7 508.0 346.0
LampreII . . . . . . . . . . .289.7 4.5 395.2 220.7
Petrofac Ltd. . . . . . .1543.0 50.0 1685.0 1108.0
Wood Group (John) .670.5 4.5 715.8 469.9
Burberry Group. . . .1250.0 47.0 1600.0 1030.0
PZ Cussons. . . . . . . .335.5 2.1 404.0 308.7
Supergroup . . . . . . . .548.5 18.5 1820.0 435.2
AstraZeneca . . . . . .3042.5 33.0 3194.0 2543.5
BTG . . . . . . . . . . . . . .326.1 4.2 334.5 210.1
Genus. . . . . . . . . . . .1069.0 17.0 1111.0 831.5
GIaxoSmithKIine. . .1497.0 15.0 1500.0 1127.5
Hikma Pharmaceuti .657.5 3.0 900.0 555.5
Shire PIc. . . . . . . . . .2150.0 -2.0 2243.0 1562.0
CapitaI & Countie . . .182.7 -1.1 203.7 142.8
Daejan HoIdings . . .2773.0 -37.0 2954.0 2282.0
F&C CommerciaI Pr .103.0 0.3 108.0 92.6
Grainger . . . . . . . . . . .104.2 0.7 133.2 77.3
London & Stamford .107.1 -0.7 140.0 103.9
SaviIIs. . . . . . . . . . . . .336.0 -8.1 427.1 256.2
UK CommerciaI Pro . .69.4 0.2 85.5 65.1
Unite Group. . . . . . . .164.0 -3.6 224.1 152.9
Big YeIIow Group . . .255.3 -6.8 344.4 218.0
British Land Co. . . . .460.3 -7.8 629.5 444.0
CapitaI Shopping . . .306.5 -1.6 419.1 288.7
Derwent London . . .1535.0 -33.0 1880.0 1400.0
Great PortIand Es . . .325.6 -3.4 445.0 312.9
Hammerson. . . . . . . .356.7 -2.8 490.9 345.2
Hansteen HoIdings. . .72.6 -0.4 89.5 68.0
Land Securities G. . .621.5 -15.0 885.0 612.0
SEGRO. . . . . . . . . . . .200.1 -4.0 331.3 195.0
Shaftesbury. . . . . . . .462.9 -2.5 539.0 436.4
Aveva Group . . . . . .1463.0 13.0 1799.0 1298.0
Computacenter . . . . .345.0 4.5 490.0 324.7
Fidessa Group. . . . .1612.0 32.0 2109.0 1444.0
Invensys. . . . . . . . . . .213.1 1.4 364.3 180.9
Logica . . . . . . . . . . . . .67.4 1.4 147.2 59.0
Micro Focus Inter . . .399.3 5.0 426.2 239.4
Misys . . . . . . . . . . . . .247.0 7.8 420.2 214.9
Sage Group . . . . . . . .299.1 4.4 302.2 231.7
SDL. . . . . . . . . . . . . . .650.0 7.0 711.5 586.0
TeIecity Group. . . . . .630.5 8.0 647.0 430.0
Aggreko . . . . . . . . . .2089.0 40.0 2090.0 1394.5
Ashtead Group . . . . .220.7 2.8 230.2 99.4
Atkins (WS) . . . . . . . .653.0 1.5 820.0 490.2
Babcock Internati . . .734.0 4.0 739.0 542.0
Berendsen . . . . . . . . .433.5 -0.7 568.0 402.7
BunzI . . . . . . . . . . . . .887.5 5.5 892.5 676.5
Cape . . . . . . . . . . . . . .335.1 8.9 591.5 295.0
Capita. . . . . . . . . . . . .640.0 -4.0 786.5 611.5
CariIIion . . . . . . . . . . .302.4 -2.6 403.2 281.0
De La Rue . . . . . . . . .894.5 7.5 936.0 667.0
DipIoma . . . . . . . . . . .360.0 -0.2 414.3 263.5
EIectrocomponents .204.1 1.2 294.9 182.2
Experian. . . . . . . . . . .853.0 -1.0 880.0 665.0
FiItrona PLC . . . . . . . .396.5 1.5 399.9 250.0
G4S. . . . . . . . . . . . . . .272.7 1.2 291.0 219.9
Hays . . . . . . . . . . . . . . .64.9 0.4 132.4 58.9
Homeserve . . . . . . . .299.0 0.0 532.0 218.5
Howden Joinery Gr. .102.4 0.0 127.5 93.1
Interserve. . . . . . . . . .317.9 2.0 341.3 231.8
Intertek Group. . . . .2062.0 15.0 2148.0 1715.0
MichaeI Page Inte . . .345.2 2.3 567.0 323.0
Mitie Group . . . . . . . .269.0 4.9 269.5 195.9
Premier FarneII . . . . .194.1 0.7 308.8 144.5
Regus. . . . . . . . . . . . . .86.2 -0.4 119.0 64.0
RentokiI InitiaI . . . . . . .64.6 1.1 104.9 58.2
RPS Group. . . . . . . . .185.9 6.3 253.0 156.6
Serco Group . . . . . . .491.3 2.9 618.5 458.0
Shanks Group. . . . . . .97.1 1.0 130.9 90.8
SIG . . . . . . . . . . . . . . . .86.7 1.3 153.5 77.0
Travis Perkins . . . . . .798.0 4.0 1127.0 715.0
WoIseIey. . . . . . . . . .2119.0 -22.0 2261.0 1404.0
ARM HoIdings . . . . . .609.5 -0.5 651.0 459.6
CSR . . . . . . . . . . . . . .190.9 3.1 447.0 154.1
Imagination Techn . .568.0 20.0 570.0 296.9
Spirent Communica .115.2 -0.2 160.0 105.8
British American . .3038.0 5.5 3079.0 2282.5
ImperiaI Tobacco . .2411.0 -13.0 2444.0 1784.0
Betfair Group. . . . . . .810.0 6.5 1054.0 567.0 Digita . . .172.3 1.8 214.7 100.6
CarnivaI . . . . . . . . . .2166.0 21.0 3150.0 1742.0
Compass Group . . . .605.0 4.5 616.0 512.5
Domino's Pizza UK. .437.0 -3.0 586.0 377.0
easyJet. . . . . . . . . . . .395.2 11.7 474.0 301.0
FirstGroup . . . . . . . . .339.5 4.5 406.3 301.8
Go-Ahead Group. . .1382.0 14.0 1598.0 1190.0
Greene King . . . . . . .484.4 8.1 518.0 410.0
InterContinentaI . . .1174.0 14.0 1435.0 955.0
InternationaI Con . . .146.5 1.0 305.0 132.0
JD Wetherspoon. . . .421.4 3.0 468.3 380.5
Ladbrokes . . . . . . . . .131.3 -1.2 155.3 114.0
Marston's. . . . . . . . . . .90.8 0.7 112.0 84.6
MiIIennium& Copt . .393.5 0.0 600.5 371.2
MitcheIIs & ButIe. . . .249.8 20.0 361.0 215.6
NationaI Express . . .222.2 1.8 270.2 201.6
Rank Group . . . . . . . .131.7 1.7 153.7 109.5
Restaurant Group. . .283.0 1.3 335.0 254.9
Stagecoach Group . .267.5 3.7 272.4 200.0
TUI TraveI. . . . . . . . . .160.4 -0.7 271.9 136.7
Whitbread . . . . . . . .1589.0 23.0 1887.0 1409.0
WiIIiamHiII. . . . . . . . .203.8 1.6 244.1 168.6
Abcam . . . . . . . . . . . .369.8 -8.8 460.0 307.0
Advanced MedicaI . . .92.5 -2.5 96.0 64.8
AIbemarIe & Bond . .334.0 2.5 400.1 272.0
Amerisur Resource . .16.8 0.3 29.0 9.5
Andor TechnoIogy . .590.0 4.5 685.0 387.1
ArchipeIago Resou. . .67.3 -0.8 79.0 55.5
ASOS . . . . . . . . . . . .1404.0 64.0 2468.0 1142.0
AureIian OiI & Ga . . . .17.0 -0.5 92.0 16.0
Avanti Communicat .300.0 -3.0 646.0 248.5
BIinkx . . . . . . . . . . . . . .68.8 -0.5 158.0 50.5
Borders & Souther . . .68.0 0.3 72.3 43.5
BowLeven . . . . . . . . . .75.0 6.3 398.0 62.0
Brooks MacdonaId .1141.5 21.5 1372.5 940.0
Cove Energy . . . . . . .124.5 -0.3 129.0 61.0
Daisy Group . . . . . . .100.0 2.3 127.0 88.0
EMIS Group . . . . . . . .497.5 -2.5 580.0 416.0
Encore OiI . . . . . . . . . .80.8 3.8 151.5 40.8
Faroe PetroIeum. . . .160.0 2.0 218.3 130.0
GuIfsands PetroIe. . .186.0 1.0 401.5 142.5
GWPharmaceuticaI . .82.0 -1.9 130.0 78.5
H&T Group. . . . . . . . .320.0 -15.0 395.0 277.0
Hamworthy . . . . . . . .826.0 2.0 833.5 406.3
Hargreaves Servic .1093.0 -5.0 1180.0 814.5
HeaIthcare Locums . . . .3.4 0.1 3.6 3.2
Immunodiagnostic . .430.0 -9.8 1218.0 425.3
ImpeIIamGroup . . . .265.0 0.0 387.5 181.5
James HaIstead. . . . .443.5 6.0 495.0 372.5
KaIahari MineraIs . . .242.0 0.5 301.0 198.3
London Mining . . . . .301.5 -0.3 436.5 278.5
Lupus CapitaI . . . . . .115.0 0.5 150.0 86.0
M. P. Evans Group . .435.0 4.0 499.0 371.0
Majestic Wine . . . . . .341.3 12.3 510.0 315.0
May Gurney Integr . .279.0 -3.0 302.0 234.0
Monitise . . . . . . . . . . . .27.8 0.8 40.0 18.5
MuIberry Group. . . .1500.0 -24.0 1920.0 1004.0
Nanoco Group. . . . . . .54.0 1.8 100.0 38.0
NauticaI PetroIeu . . .256.0 0.3 547.0 223.5
NichoIs. . . . . . . . . . . .591.5 54.0 606.3 410.0
Numis Corporation. . .77.0 0.0 131.0 72.0
Pan African Resou . . .15.0 0.0 17.0 9.5
Patagonia GoId . . . . . .47.3 -1.0 70.0 37.3
Prezzo . . . . . . . . . . . . .61.8 1.8 71.5 53.5
Pursuit Dynamics . . . .83.6 3.6 483.8 67.0
Rockhopper ExpIor .291.5 21.0 386.0 141.0
RWS HoIdings. . . . . .450.0 1.5 481.6 328.0
Songbird Estates . . .113.8 2.8 160.3 104.0
VaIiant PetroIeum . . .430.0 -4.5 672.0 400.0
Young & Co's Brew. .660.0 0.0 712.0 565.0
JDSportsFashion ..660.0 11.4
MitcheIIs&ButIer ...249.8 8.7
SaIamanderEnergy .227.5 5.5
KenmareResources..47.5 5.3
AIIiedGoIdMining ..157.8 5.1
HochschiIdMining ..411.9 5.0
PremierOiI.........392.4 4.7
Centamin(DI) .......81.8 4.2
Rightmove ........1318.0 4.2
Carpetright ........513.0 4.0
ManGroup.........112.7 -8.4
InternationaIPers ...160.0 -7.0
JupiterFundManag .196.0 -5.5
TuIIettPrebon ......262.3 -3.5
EssarEnergy ......170.7 -3.1
ICAP..............319.3 -3.0
AshmoreGroup ....321.3 -2.9
BigYeIIowGroup ...255.3 -2.6
AdmiraIGroup......844.5 -2.5
LandSecuritiesGr ..621.5 -2.4
Risers FaIIers
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
Tsy 5.000 12 . . . .100.71 -0.07 104.9 100.7
Tsy 5.250 12 . . . .101.99 -0.05 106.2 102.0
Tsy 9.000 12 . . . .104.97 0.00 112.5 104.0
Tsy 4.500 13 . . . .104.72 -0.07 107.1 104.7
Tsy 2.500 13 . . . .283.45 0.02 287.7 279.0
Tsy 8.000 13. . . . .112.94 -0.08 118.0 112.8
Tsy 5.000 14. . . . .112.04 -0.02 112.9 109.2
Tsy 4.750 15. . . . .114.88 0.09 115.4 108.6
Tsy 8.000 15 . . . .128.18 0.07 129.2 123.7
Tsy 7.750 15 . . . .100.39 0.00 107.1 99.8
Tsy 4.000 16. . . . .114.16 0.18 114.7 104.9
Tsy 2.500 16 . . . .343.78 0.47 344.2 312.1
Tsy 8.750 17 . . . .141.14 -0.16 141.9 132.9
Tsy 1.250 17. . . . .116.38 0.60 116.7 106.7
Tsy 12.000 17 . . .122.10 0.00 130.3 122.1
Tsy 5.000 18 . . . .121.93 0.18 122.4 109.7
Tsy 4.500 19 . . . .120.32 0.28 120.6 105.4
Tsy 3.750 19. . . . .115.18 0.29 115.5 99.4
Tsy 2.500 20 . . . .366.43 0.62 367.1 314.0
Tsy 4.750 20 . . . .122.94 0.19 123.5 106.6
Tsy 8.000 21 . . . .152.53 0.18 153.4 133.8
Tsy 4.000 22. . . . .117.46 0.20 118.2 99.0
Tsy 1.875 22 . . . .129.01 0.83 129.2 111.3
Tsy 2.500 24 . . . .334.38 0.79 335.7 275.6
Tsy 5.000 25 . . . .129.75 0.24 130.6 107.4
Tsy 4.250 27 . . . .121.86 0.34 122.6 97.9
Tsy 1.250 27 . . . .126.89 0.77 127.8 104.8
Tsy 6.000 28 . . . .146.88 0.33 147.8 119.5
Tsy 4.750 30 . . . .129.32 0.42 130.0 103.0
Tsy 4.125 30 . . . .322.44 0.77 322.9 262.1
Tsy 4.250 32 . . . .121.86 0.45 122.5 96.0
Tsy 4.250 36 . . . .122.35 0.44 123.2 95.0
Tsy 4.750 38 . . . .132.41 0.47 133.4 102.8
Tsy 4.500 42 . . . .128.68 0.54 129.6 98.9
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Wealth Management | Markets
24 CITYA.M. 9 JANUARY 2012
Donata Huggins finds
out how a start-up is
battling City titans at
wealth management
Business Features| Entrepreneurs
O DELIVER a major kickstart to the eco-
nomic recovery we need to get British busi-
nesses working better online. 2012 is set to
be one of the toughest economic environ-
ments in recent history and our economy
depends on the survival of our small businesses.
Young businesses are the firms with the most
potential to create new jobs, wealth and innova-
tion in the UK, and will haul us out of this reces-
sion. But in order for them to thrive, they must
use the internet as their lifeline.
So this is my Lord Kitchener moment and
my goal is to persuade Britains small businesses
that your country really does need you.
The truth is, small businesses in the UK cur-
rently hugely under-utilise the internet. Most
small business efforts to date have focused on
getting startups online; which has translated
into support in creating a simple web page.
Though this is of course an essential first step,
I believe that the internet provides the transfor-
mative potential to change every element of a
businesss profit and loss statement, helping
them reduce costs, increase sales and exports
and thus increase profitability and employment.
The web gives businesses the potential to
become global in just a few clicks.
Therefore, an intensive effort is required to
help SMEs to exploit the web to its fullest
extent, to use the speed of the internet to rapidly
and radically change the business prospects of a
large number of small businesses.
In 2012, small businesses need to know more
than just how to sell online. They need the skills
to drive marketing through social media,
increase their website exposure through search
engine optimisation, and procure and enhance
supply chains through business-to-business web-
School for Startups has developed a nation-
wide programme of bootcamps called the Web
Fuelled Business initiative to help UK small busi-
nesses grow more quickly and become more
profitable by teaching them to fully exploit the
internet and the opportunities it brings.
Supported by the Department for Business,
Innovation and Skills, the national three-month
pilot programme kicks off next week, and
through a tour of one-day bootcamp events all
over the UK and web-broadcasts, 3,500 small
businesses will be supported.
The goal is to boost the productivity of those
firms as they apply the skills they have learnt
within their individual businesses.
Its an example of a successful partnership
between the public and private sectors that aims
to rapidly create growth, and if this pilot pro-
gramme can be built upon, it means that we can
play our part in assisting in the creation and
safeguarding of jobs in Britain.
Locations for the training sessions include
Birmingham, Bristol, Leeds, Liverpool,
Manchester, Newcastle, Norwich, Nottingham,
Portsmouth, Reading, and Torquay. Applicants
can register at
Doug Richard is the founder of School for
Startups @DougRichard
T THE end of a High Court case,
and with the banking system
falling apart around us, I
thought this had to be either the
end of the business or the beginning of
something good, says David Scott, the
founder of the mid-sized wealth man-
agement firm Vestra Wealth. But the
thing was, I had invested everything I
had in the idea. Failure wasnt really an
option. Getting through this first year
of business, however, was no easy task.
The court case was the result of 72
UBS staff handing in their notice to go
to work for Vestra Wealth on the same
day. They got a little bit upset about
that, Scott says wryly. But it worked
out okay in the end. We basically settled
on the terms.
Scott had started, run and sold a bou-
tique business before, but this offered
him little comfort amid 2008s chaos.
The thing about being a successful,
one-time entrepreneur is you cant help
but ask if you were just lucky.
But these events worked in Scotts
favour. It was a bit of a David and
Goliath thing. We actually had people
phone us and say: Ive seen that this big
bank is trying to crush you, can I come
down and give you my business? With
the added bonus that the credit crunch
had broken the unconditional trust
many had in large banks.
The chain of events actually sat very
nicely with Vestras ethos, Scott adds.
I was motivated to set her up because I
thought there should be a market for
offering a wealth management service
that didnt push products down cus-
tomers necks. Indeed, vestra means
your in Latin.
Scott couldnt understand why this
sort of wealth management business
hadnt been started before until he
tried. Creating a mid-size business is
really quite difficult. You need a critical
mass to recruit the right people, but if
you dont have the business, how can
you afford it? he explains.
Luckily, Scott had attracted a desir-
able collection of early stage investors.
Goldman Sachs, who had initially
wanted me to set the business up as
part of their discretionary service, took
a stake. It gave the initial credibility it
From then on, they were up and run-
ning. Scott managed to find premises
on Cornhill in the City. To get the great
staff we wanted we had to offer them
the same packages they had been on
previously, that included a City address,
and a lot of vision. They have been fan-
tastic though, sticking with us through
the court case. They took a big risk for
us and what Vestra Wealth could
Since then the business has grown
steadily, often attracting other entre-
Job title: Managing partner
Company name: Vestra Wealth LLP
Assets under management: 2.5bn
Number of staff: 140
Age: 48
Born: Northern Rhodesia
Lives: SW7
Studied: MBA, Ulster Business School
Motto: Nothing ventured, nothing gained" or
Be the best that you can be.
Drinking: Chilled white wine
Reading: Steve Jobs biography
Idol: Jackie Stewart
Talents: Spotting opportunities
Favourite business book: The Death of
Gentlemanly Capitalism
First ambition: To be a surgeon
Awards: Citywealth Leader of the Year 2010
Vestras classic formula:
Your assets, your choice
preneurs as clients. I think its in an
entrepreneurs blood to distrust big
banks and want to have more control
over their money.
Wheres next for Scott? Does he have
another business idea? I find it hard to
imagine not doing this, he says. I sup-
pose at some point a chief executive fig-
ure should step in, but thats not on my
radar yet. Not least because running the
business isnt as much fun as dealing
with clients.
David Scott is a founder and managing part-
ner of Vestra Wealth LLP.
David Scott has
faced down some
financial Goliaths.
Helping free small
businesses through
the webs power
Bag a bargain trip to the Emerald Isle
Bag a bargain trip to Ireland with a winter sale from Aer Lingus,
which is offering flights to the Emerald Isle from just 19.99. For
those heading further afield, you can fly to the States from as little as
199. The sale covers flights running from now until the 29 March.
Book by 16 January. For more information, visit
Lifestyle | Travel
26 CITYA.M. 9 JANUARY 2012
E set off from London hotly
anticipating both the sereni-
ty of the Mozambican beach
and the rugged landscape
and heart-pounding thrill of hunting
(seeking not shooting) big game in the
Tanzanian bush.
Its a trip that perfectly encapsulates
the word safari long journey in
Swahili for it takes in seven flights,
five boat crossings and two six-hour car
rides, not to mention endless hours
whiled away in modest airport struc-
Three flights in, including an hour-
long trip deep into the bush on a 14-
seater Cessna (Coastal Aviation has
been opening up East Africa to holiday-
makers since 1987), our first stop is The
Built on the most remote corner of
Selous Game Reserve, one of the
largest fauna reserves in the world and
Africas largest protected wildlife sanc-
tuary, the resort is a seven-hour drive
from the nearest camp.
Our guide, Holle Hollea, a local of
Dar es Salaam, the major coastal city
weve just flown in from and one-time
capital of Tanzania, and an armed
ranger greet us at the airstrip. We
clamber out of the pull-down door of
the Cessna and climb into the open-
air jeep just in time to watch the
plane turn and thunder away.
The seclusion is striking. The
Western worlds long fascination
with the mysterious dark conti-
nent is palpable: you could be
forgiven for thinking youve land-
ed in utterly uncharted territory.
Of course, this is far from virgin
soil. This very place is even one of
the settings for the 1950 film King
Solomons Mines, an adaptation of
the book of the same name in
which the author presents himself
as the main protagonist, having
spent many years in Africa in the
late 19th century as a gentleman
The shoot involves a 14,000 mile
journey, 53 European filmmakers,
130 Africans and stunts that
include a stampede of 6,000 ani-
mals across the Serengeti little
wonder that a US newspaper at the
time hails it the most ambitious
location trip in Hollywood history.
Six decades later and two female
friends are doing what Holle calls the
jeep jig. Were as equally unprepared
for what lies ahead as those filmmakers
undoubtedly were. Nothing is prepara-
tion for a face-off with 5,000 kilograms
of African elephant.
Rounding into a thick-
et on our inaugural
game drive to The
Retreat, we startle two
of the animals. The feel-
ing is mutual. As we
gawp, mouths agape,
the smaller of the two
lumbers back the way
it came, while the larg-
er thuds through the
vegetation to our side.
He (his size says it all)
stops feet away from
the rear of the vehicle,
turns to face us head-
on and stares. Its terrifying, astounding
and magnificent at the same time.
This isnt our only such encounter
during our time in Tanzania. We spot a
lion beneath a tree beside the Great
Ruaha River waiting for his dinner to
come to drink; a family of giraffes glid-
ing across the plains with amazing
grace; two lionesses, red-mouthed, with
a half-eaten impala; a troop of baboons
raucously grunting of danger and
crashing through the treetops.
Such moments remain rare enough
to evoke the same mixture of emotions;
the human race seems insignificant in
this vast and powerful natural world.
From The Fort, The Retreats main
house built on the site of a former mili-
tary observation point from World War
I, a dozen starved hippopotamuses can
be seen upturned in the Ruaha.
Crocodiles circle their carcasses. The
locals pray for rain.
Witnessing the laws of nature brings
a growing disquiet after dark. Our tent-
ed suites two of 12, each mounted on
raised teak platforms with their own
private deck, outdoor cast iron bath,
plunge pool and chill-out area sit right
on the river bank, with its dozens more
honking hippos that plod out to graze
on the scant grasses under the cover of
The night air comes alive with the
sounds of the bush, and little sleep is
had amid fears that a black mamba,
rapacious big cat or curious croc could
coming calling.
Upon our return from our last sup-
per at Hippo Point a private safari
camp with its own chef and butler two
kilometres from the main lodge our
armed watchman nonchalantly tells of
a hyena on the prowl and a flicker of his
torch illuminates the glint of an ele-
phants tusk as it tears down branches
meters from where my head should
soon be. My companion and I share her
four-poster bed that night, the canvas
tent interior (handmade to reflect the
stars of the African sky) lit until dawn
with every lamp and candle we could
During our parting breakfast, the
camp workers at least half of them
local boys express gentle amusement
at the trepidation of two British girls.
The camp its philosophy based on
Tanzania and
Mozambique are
off the beaten track
but worth the trip,
says Jennifer Hill
Be amazed by Africas
Sleeping in thin tent-like structures is
wonderfully romantic but can also be
a little terrifying, given the abun-
dance of fauna lurking in the night
Georgio Armani expands hotel business in Milan
The Presidential Suite room 613 of the new Armani Hotel in Milan
costs 10,000 per night, but if youve got the dosh its worth it for its
sweeping views and sublime elegance. The second hotel from the fash-
ion designer may occupy a fascist-style building, designed in 1937, but
inside its all sleek, warm luxury.
New kids menu at Residence Mauritius spa
The Residence Mauritius has upped the ante where the kiddies are
concerned. Following a 700,000 injection, the spa now offers luxury
body massages, Haute Beaut facials using luxury French spa brand
Carita, mini-manicures, pedicures, hair braiding and personal training
sessions for children up to the age of 15.
27 CITYA.M. 9 JANUARY 2012
respect for ancient traditions, local
communities, natural materials and
untouched nature sits entirely at ease
in its landscape, but it nevertheless
makes me ponder how the local tribes
really feel about its being, and whether
western notions of luxury have any
place in one of the worlds poorest
In Mozambique an altogether differ-
ent wilderness of white sandy beaches,
rolling scrubland and mangrove
swamps we witness East African vil-
lage life first-hand.
Mud-hutted village
Cabaceira Pequena is
home to most of the
40 staff at Coral
Lodge, which opened in June. A throng
of barefoot children dance beside the
car, reveling in the sight of their own
reflection. We visit the school (a con-
crete single-room structure with chick-
en wire for windows and nothing but a
blackboard) and the well, where
women collect water and children jos-
tle to catch a glimpse of themselves on
our digital cameras.
The contrast (between barefoot pover-
ty and barefoot luxury) couldnt be
more striking. Getting to Coral Lodge is
arduous (our driver runs out of petrol
despite stopping to fill up four times,
and the boat crossing from Ilha de
Moambique (Mozambique Island) the
former capital of the country and
UNESCO World Heritage Site, is some-
what wet), but once were there its easy
to relax.
The ten thatched villas have hard-
ness-adjustable mattresses, Egyptian
cotton bed linen, spacious bathrooms
with huge stone baths and walk-in
showers, and verandas with daybeds,
perfect for lazy afternoons or a sun-
These are Africas newest tourist
spots best explored before the West
truly catches on.
stunning wilderness
The contrast between the opulent luxury of the tourist accommodation
and the mud huts of the locals is stark in this largely untouched natural
l Suites at The Retreat
( in
Tanzania start from $495 per
person per night. The price
includes meals, house drinks and
two complimentary activities per
day (choose from game drives,
safari walks, boat excursions,
fishing and spa treatments).
Activities such as bush walking
with meditation, painting the
sound of the bush and laughing
with the hippos are occasionally
on offer.
l Villas at Coral Lodge 15.41
( in
Mozambique start at $295 per
person per night. The cost includes
meals (the food is five-star), house
wines, beer and soft drinks, as well
as non-motorized activities, such
as fishing, windsurfing, snorkeling
and canoeing. You can also go on a
sunset dhow cruise or cultural tour
of Ilha de Moambique.
l A ten-day fully inclusive luxury
safari and beach holiday,
combining four nights at The
Retreat, four nights at Coral Lodge
and a one-night stop-over in an
ocean view villa at Londo Lodge
(, as well as
Kenya Airways international flights
from London Heathrow and
internal transfers, costs from
4,380 per person with W&O
Travel Rainbow Tours (0845
2773330/, a saving
of 420 per person.
The dry season (June to
November) in general is the best
time to go on safari in Tanzania as
the animals congregate at water
holes and river banks. Think about
visiting Coral Lodge during August
and September when whales are
spotted migrating.
Visas are required for both
Tanzania and Mozambique. British
citizens can buy these at the point
of entry for $50 and $25
respectively, though Mozambican
visas are soon expected to
increase to $82 at some
immigration points.
Several vaccinations and anti-
malarial medication are highly
Lifestyle| Books
This is an unusual work by an unusual
author. There are probably too many
eaten spiders and murdered hitchhikers
to make it a mainstream page-turner,
but for anyone who likes American writ-
ing or a gothic read, this is not to be
The crooked and the odd in
a slice of Gothic Americana
Two US authors impress with dark, skillful probings of human weakness
Harvill Secker, 12.99
by Alasdair Byers
ONALD Ray Pollock was born in
Knockemstiff, a ghost town in
Ohio. Growing up and leaving high
school early, Pollock was a truck
driver and laborer at a local factory. Then,
upon turning 50, he had one heck of a
midlife crisis. Enrolling in a local cre-
ative writing program, Pollock became a
cult hero overnight with the 2008 publi-
cation of Knockemstiff, a collection of
nightmarish short stories. Having won
two awards and multiple appearances in
literary journals for his work, Pollock has
now released his debut novel: The Devil
All The Time.
Its a harrowing look at American soci-
ety, seen through the lives of people in a
backward town in Ohio, told by a teenag-
er called Arvin. Theres the descent into
religious fervour and madness of Arvins
ex-marine father who watches his wife
Charlotte dying of cancer and the disinte-
gration of a local lawyers life as he
sneaks home from work early to watch
his wife sleeping with the gardener.
Preachers Roy and Theodore eat spiders
and drink antifreeze (respectively) to
prove their faith. Throw in a crooked
sheriff, a pedophiliac minister and a cou-
ple of spontaneous murders and you have
quite the story.
This is a brilliant piece of American lit-
erature, written in a macho, stripped-
down style reminiscent of Hemingway. It
makes use of extreme character behav-
iour to discuss society in much the same
way that Fight Clubs Chuck Palahniuk
managed. Perhaps most impressively,
Pollock calmly describes each characters
motivations for their actions so that for
the duration of the novel they almost
make sense.
Tearing your hair out over a man? Its time to regain control
DEAR VEXED: I met a guy at a Christmas
party and weve seen each other a few
times. I really like him but hes playing it
cool. Now I cant stop thinking about him.
When I get like this, I really struggle to con-
centrate on anything else and have been
making some blunders this week back at
work. How can I claw back my concentra-
tion? This is driving me crazy.
Suzie, 30, solicitor
ERTAIN religions argue that any touch
before marriage from hug to kiss to more
fulsome embrace ruins your judgement
and self-respect. Now, clearly thats a bit
extreme, but the fact is, particularly for women,
seeing someone includes not just touch but the
promise of development, and possibly even love,
so your judgement can be really very violently
challenged. Women I hate to admit tend to
go intellectually crazy when faced with these
possibilities, whether the man deserves it or not.
I sympathise. Its an irksomely ambiguous
state of affairs, bound to obsess you for its loose
ends and mixed messages. But heres the harsh
truth: there are two outcomes to seeing a man.
One: its a matter of time before you go off him
and have to begin the awkward extrication
process. Two: youre going to get hurt, sometimes
very badly. You seem to be in camp two unless
you quickly and urgently claw back some power
and selfhood in your brain, to begin with. See, if
you like a guy, but it doesnt evolve beyond see-
ing because hes playing it cool, you get what
feels like an ever-growing spanner in your head.
Its one of the inequalities of the genders that
men seem better able to dissociate their brain-
space from their romantic escapades.
Heres what you must do. Reframe this guy as
an obsessional construct of your brain Id
wager that you have a bit of a compulsive turn of
thought in general rather than an amazing
Adonis who would make you the happiest
woman alive if only hed recognise how wonder-
ful you are. Every time you realise youve been
spacing out thinking about him, picture your neu-
rons firing in stuck mode, however that would
look to you.
Secondly, cease talking about him to your
friends instantly. Youll only make him a bigger
deal that way and theyre bound either to give
you false hope or depress you. If you have the
willpower, try meditating (focusing on your
breathing for five minutes) several times a day,
which is a classic way of stilling the mind. Only
read/watch gripping books/movies, as less grip-
ping ones will send you into reveries. And stop
contacting him immediately use his silence to
your advantage, as time to rebuild yourself. Let
him grow more distant since to be frank it
sounds like thats what he wants. Should he sud-
denly get in touch and want to see you, reclaim
some power by saying youre not free for a while,
and when you are, its basically at the pub right
next to your work.
Good luck. None of this is easy when youve
got the itch. But I promise you, nothing not
even a hunky mans warm embrace feels as
good as getting your power back.
Pollock avoids overt morals or mes-
sages. Rather its up to the reader to
make what they can out of a few key
themes: religion in the wrong hands is
dangerous, violence behaves like a conta-
gious disease, and guilt is a terrifyingly
strong emotion.
Bloomsbury, 17.99
by Zoe Strimpel
A NATIVE of Queens, New York, Kennedy
adopted Copenhagen nearly 30 years ago
when he was offered a job for the Danish
Medical Association, which he kept for 28
years. Struggling artists come in all forms,
though, and Kennedys lifelong ambition to
novelise at last came to fruition in 1996
when he conceived of the Copenhagen
Quartet, a series of four independent novels
set in the city, each in a different season and
written in a different style.
Falling Sideways is the second install-
ment. Its a satire of corporate culture that
skewers the heart of darkness pumping in a
certain contingent of the banking world.
City readers sick of parodies of people like
them may think it sounds tiresome, but its
actually rather deft and original, and
Kennedy does an excellent job of evoking
the melancholic yet intimate Scandinavian
city, whose freezing, black winters and
bright summers set hearts and souls and
egos on edge.
The action takes place at a corporate
behemoth called Tank (quite what Tank
trades in is left vague) and centres on three
colleagues: Frederick Breathwaite, a sophis-
ticated American expat, the paranoid
Harald Jaeger, who spends an equal amount
of time worrying about his job and nursing
pornographic fantasies fuelled by col-
leagues, and Tanks CEO Martin
Kampmann, a cartoonishly evil, ruthless
It is Breathwaites and Kampmanns sons
that give the book its humanity and shape.
Both reject their parents materialism, shar-
ing a flat, possessions, and even a girl, pro-
viding an antidote to the brutal
arch-masculinity of Tank.
Yes, theres a bit of snore-worthy banker
bashing here if not in specifics then in
spirit but most City readers will enjoy
Kennedys skilful probing of the way
humanity, particularly men, behave in the
savage jungle of the money-gilded office.
Sackings, cash
and lust in
Danish drama
America is a ripe
setting for a goth-
ic drama.
Picture: Getty
Jim Al-Khalili follows the efforts of
particle physicists at the Cern research
laboratory near Geneva, Switzerland,
to find the Higgs particle.
DI Anna Travis and DCS James
Langton are reunited to investigate
the murder of British film star and
tabloid favourite Amanda Delany.
Part one of two. Celebrity Big Brother
2011 winner Paddy Doherty invites
fellow ex-housemate Sally Bercow to
live with him for a fortnight.
7pmSky Sports News at Seven
7.30pmLive Irish Football 10pm
Netbusters 10.30pmSoccer AM:
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1.30amNetbusters 2amSports
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1 2 3 4 5 6
7 8 9
10 11
12 13 14
15 16
17 18 19
20 21 22
23 24
25 26
17 10 8
8 28
6 5
39 6
13 23 16
8 35
9 9
10 24
10 20 3
Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
Copyright Puzzle Press Ltd,
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.
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.
1 Capital of Tibet (5)
4 Former Nigerian
capital (5)
7 Give up work (6)
9 Type of sousaphone (4)
10 Gambling stake (4)
12 Not many (1,3)
13 Main part of the
human body (5)
15 Ironic (3)
17 Cofee-chocolate drink (5)
19 Heating elements in
an electric re (4)
21 Hanker (4)
23 Lowest female
singing voice (4)
24 Three times (6)
25 Twilled cloth used
especially for military
uniforms (5)
26 Cardinal number (5)
1 Long noosed rope (6)
2 Style of design
popular in the 1920s
and 1930s (3,4)
3 City, site of the
Taj Mahal (4)
5 Daisy-like ower (5)
6 Cleansing agent (4)
8 Participant in
some activity (7)
11 Non-functional replica
of something else (3)
14 Dramatisation (7)
15 Which person? (3)
16 Characteristic to
be considered (6)
18 Timepiece (5)
20 Rear, posterior
part (4)
22 Claried butter used
in Indian cookery (4)



2 8 3 9 5 8
8 5 9 1 3 6 2 7 4
9 7 2 4 1 5 3
7 1 7 6 6 1
4 3 2 8 1 5 9 2
4 6 2 9
9 3 4 1 3 6 5 2
7 2 2 1 8 6
6 1 2 3 4 9 1
8 5 1 2 9 6 3 7 4
6 8 9 1 2 4
The nine-letter word was
Lifestyle | TV&Games
29 CITYA.M. 9 JANUARY 2012
Sport 30 CITYA.M. 9 JANUARY 2012
ENGLAND opener Alastair Cook
admits he and his team-mates
are still blowing off the cob-
webs following an eventful
second day of their tour
match against an ICC
Combined XI in Dubai.
An adventurous and
somewhat daring
declaration from
skipper Andrew
Strauss could still
back-fire, despite
Stuart Broad taking
his match haul to six
wickets and reducing
Englands opponents to
90-5 at the close with a
lead of 185.
Earlier, Strauss had
been among one of the
England batsmen to
struggle in what
appeared less than
threatening conditions.
But Cook, who
top scored
with 76 and was the only
member of his side to pass
20 before his skipper called
an end to the innings on
185-8, insisted a certain amount rusti-
ness is only to expected at this stage
of the tour.
It wasnt ideal. I think we have to
put that down to a little bit of rusti-
ness, Cook (left) said of a batting dis-
play which featured a collapse of six
wickets for 52 runs. But credit to the
opposition and I thought Boyd
Rankin bowled very well.
I think when you havent batted
outside for probably four
months, with whites and a red
ball, it does take a while to get
into that rhythm. But its not the
end of the world.
I think, if wed batted better, we
still would have pulled out early in
order to set up a game.
Cook puts Englands collapse
down to early tour rustiness
Liverpool say sorry to Adeyemi
FOOTBALL: Oldham defender Tom
Adeyemi, who claimed he was racially
abused by a Liverpool supporter during
Fridays FA Cup third round tie, last
night received a full apology from the
Anfield club. A 20-year-old man arrest-
ed on suspicion of racially abusing the
player was released on bail yesterday,
according to police. A statement from
Liverpool read: Whatever the outcome
of what is now a police investigation, all
of us are deeply sorry for what hap-
pened on Friday night and our players
and our club pass on our sincere regrets
to Tom Adeyemi for the upset and dis-
tress he suffered as a result of the mat-
ter at hand.
Daredevils sign KP for $2m
CRICKET: England batsman Kevin
Pietersen has secured a move to Indian
Premier League franchise Delhi
Daredevils for a fee of $2m (1.2m) . The
South African-born star signed for
Deccan Chargers last year but surgery
on an injured hernia prevented him from
featuring in the competition. The 2012
IPL season runs from 4 April to 27 May,
but Pietersen is expected to be available
for Englands Test series against West
Indies starting on 17 May.
Oosthuizen wins Africa Open
GOLF: Former Open champion Louis
Oosthuizen retained his Africa Open title
after finishing two shots clear of his fel-
low South African Tjaart van der Walt.
The leaderboard was dominated by
home players with Scotland's Alastair
Forsyth the top non-South African, fin-
ishing in fifth place, five shots off
Oosthuizens final total of 27 under par.
Shabana the king at Queens
SQUASH: Egypts Amr Shabana came
through a hardfought battle with
Frenchman Gregory Gaultier to take the
title at the ATCO World Series Squash
Finals yesterday, while World No1 Nicol
David of Malaysia continued her domi-
nation of the womens game with victo-
ry over Irelands Madeline Perry at
Londons Queens Club.
BRITAINS Andy Murray hailed his
burgeoning partnership with new
coach Ivan Lendl after making a victo-
rious start to the year by winning the
Brisbane International.
Top seed Murray beat Ukraines
Alexander Dolgopolov 6-1, 6-3 in the
final, his last competitive match
before the Australian Open gets
underway next week. The title also
marked a perfect start to his union
with Lendl, whom the Scot is opti-
mistic can help end his 100 per cent
losing record in grand slam finals.
Its very exciting, said Murray. He
had a great understanding of how to
prepare for big events both physically
and mentally. We have spent six or
seven days together and really
enjoyed it. Hes an interesting charac-
ter. He is very hard-working and is
going to give me a great opportunity
to play my best tennis this year.
World No4 Murray was ruthless in
his demolition of third seed
Dolgopolov, who laboured with a
groin injury, and needed just 65 min-
utes to clinch the final. It continued a
marked improvement on Murrays
performances in earlier rounds,
where he looked rusty and twice had
to come from a set down to progress.
He is now due to play an exhibition
match at the Kooyong Classic before
the seasons first grand slam.
Murray on
song ahead
of slam tilt
The Scot is excited by working with new
coach Ivan Lendl Picture: ACTION IMAGES
CHELSEA assistant manager Roberto
Di Matteo insists the FA Cup remains a
top priority at Stamford Bridge after a
near full-strength side overcame
Portsmouth yesterday following a four-
goal second half demolition.
Portsmouth, 2008 FA Cup win-
ners but currently languish-
ing in the lower reaches of
the Championship,
proved obdurate oppo-
nents until Juan Mata
broke the deadlock in
this third round tie two
minutes after the re-
Still, it took Chelsea
until the closing stages to
make their superiority count
with the increasingly influential
Ramires collecting a late brace and
Frank Lampard pouncing in injury-
With indifferent league form threat-
ening their participation in next sea-
sons Champions League, manager
Andre Villas-Boas might have consid-
ered rotating his squad against moder-
ate opposition, but Di Matteo claimed
yesterdays team selection underlined
the clubs determination to progress in
the competition.
I dont think we ever said we
werent going to play a strong team so
it shouldnt really have been a surprise.
This is a competition that we would
like to win and after the result we have
gone a step further towards that tar-
get, said the Italian, who scored in two
FA Cup final victories during his play-
ing career in west London.
I thought today was a very good
performance Portsmouth made it
hard in the first half and its always
very difficult to break down an oppo-
nent when the defence is so deep.
Despite Di Matteos positive assess-
ment, a convincing win hardly looked
within Chelseas compass following a
flat first half display. A Fernando
Torres header, expertly repelled by
Stephen Henderson, aside, Chelsea
carried little threat.
Indeed, it was Portsmouth
who missed the clearest
opportunity in the open-
ing period and Dave
Kitson was made to pay for
his profligacy two min-
utes after the re-start when
Mata turned in Florent
Maloudas low centre from
inside the six yard box.
John Terry was forced into a
heroic goalline clearance after an error
by David Luiz, and with Portsmouth
pouring forward in search of an
equaliser Chelsea took advantage.
Ramires poached his first in the
85th minute following Matas cross
and two minutes later he scampered
onto Torress pass and underlined his
confidence in front of goal with a deli-
cate finish with the outside of his right
foot. That scoreline was harsh on
Pompey but there was still time for
Lampard (inset) to give it an even more
flattering slant with a precise low shot
on the turn.
Ramires on the
rampage in
Chelsea romp

Indifferent league form wont stop Blues
targetting FA Cup success, says Di Matteo


the cycle
of poverty
Get on your bike for
the CARE Olympic Cycle
Challenge and pedal the
poorest communities
out of poverty.
23 JUNE 2012

2 1 0 2 E N U J 3 2

est communities
e p d n a Challenge
c i p m y l O E R A C the
e k i b r u o y n o t e G

est communities
e h t l a d e
e l c y C c
r o f

. ertyy. v f po out o
est communities poor

est communities



31 CITYA.M. 9 JANUARY 2012
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SARACENS boss Mark McCall urged
England chiefs to hand captain Steve
Borthwick an international recall
after he helped close the gap on
Premiership leaders Harlequins.
Borthwick and Chris Wyles scored
the tries and centre Owen Farrell
landed six successful kicks as the
hosts came from behind to move
three points behind Quins.
Steve has never given up on
England and making a comeback,
said McCall, ahead of Englands Six
Nations squad announcement on
He is playing so well, yet is some-
one rarely mentioned in terms of the
squad. If England came calling for his
experience among what may be a
young squad, he would never say no.
Stephen Donalds try and conver-
sion handed Bath an early lead and
Sarriess woes mounted when they
then lost prop Rhys Gill to the sin-bin
for an infringement at the scrum.
But Borthwick levelled despite the
numerical disadvantage before Wyles
crossed in the second half.
Sarries boss urges
Borthwick recall
Henry return to
spur Van Persie,
insists Keown
Shingler helps
London Irish
edge Sharks
Booth praised young centre
Steve Shingler after he
shrugged off a row over his
Test eligibility to help the Exiles
beat Sale Sharks 21-19.
Shingler has been called up by
Scotland for the Six Nations
but is also wanted by Wales,
whom he has represented at
under-20 level.
Booth said: It is a massive dis-
traction along with, by his own
admission, an ordinary per-
formance the week before. He
was back in his more familiar
position today and played well.
Tries from Bryn Evans and
Topsy Ojo, plus the kicking of
fly-half Adrian Jarvis, lifted
Irish to fifth in the Premiership.

THE SHOCK homecoming of
Arsenals favourite son Thierry
Henry will inspire his successor
Robin van Persie to raise his own
game to even loftier heights,
according to Gunners great
Martin Keown.
Henry (inset) is in line to make
an emotional second debut for
the club in tonights FA Cup third
round clash with Championship
promotion hopefuls Leeds, having
signed a short-term loan deal
until the end of February.
The presence of a man who
scored a club record 226 goals in
370 appearances before
departing in the summer
of 2007 raises the pos-
sibility of unsettling
Van Persie, who, like
Henry, has become
Arsenals talisman
and captain.
But Keown, who
won three Premier
League titles and
three FA Cups during
two spells in north
London, is confident the pro-
lific Dutchman, who has netted
21 in 26 games already this sea-
son, will respond positively.
I think hes now at the level of
maturity where he will enjoy hav-
ing Henry around, said Keown,
now an analyst for ESPN, which
will exclusively broadcast
tonights match.
Robin was in the shadow of
Dennis Bergkamp and Henry but
has come out of that and is now a
star in his own right, and I think
he might enjoy sharing that lime-
light for just a couple of months.
Van Persie listening to what
coaches who have worked with
him have said used to be diffi-
cult to handle. Thats not unusual,
a lot of the best players are. Hes
grown in maturity, he relishes
being the main man, and I think
hell embrace it rather than push
it away.
It will bring a level of excite-
ment to his game. He will proba-
bly want to prove he is the top
dog. Thats healthy, thats what
you should want to do.
I remember playing with Ian
Wright, and all he was interested
in was the headlines the next day.
He wouldnt settle for one goal; he
wanted three. I think its in all the
top goalscorers; they want to be
the No1 man.
Arsenal have appeared careful
not to over-hype the return of
Henry, who had been training
with the club during the Major
League Soccer close season, with
his 34-year-old legs unlikely
to scorch defences as
they once did.
Keown is mindful
too of putting pres-
sure on his former
colleague, but can-
not hide his belief
that the French
World Cup winner
still has enough in
his armoury to justify
manager Arsene
Wengers enduring faith.
Hes an intelligent man, an
intelligent passer of the ball,
added Keown. Weve seen it with
[evergreen Manchester United star
Ryan] Giggs; the very good players
adapt and find a way to be suc-
cessful. I watched him in training
six or seven weeks ago and he still
looked very sharp to me.
ESPN football analyst Martin Keown
was speaking ahead of the sports
media companys live and exclusive cov-
erage of three FA Cup third round
matches, including Arsenal v Leeds
United (7pm tonight).

Evra faces Anfield
return after FA Cup
draw pairs Liverpool
with rivals United
THE DRAW for the fourth round of the
FA Cup has thrown up several intrigu-
ing all-Premier League ties with
Manchester Uniteds visit to Anfield the
undoubted highlight.
The fierce rivalry between the two
clubs has been exacerbated in recent
months after a complaint of racial
abuse from Uniteds Patrice Evra led to
Liverpool striker Luis Suarez, who will
not be available for the tie, being hand-
ed an eight-game ban by the Football
The two clubs last met in the FA Cup
at Anfield back in 2006 with Peter
Crouchs header proving decisive, but
the game was marred by fans who
attacked an ambulance carrying
Uniteds Alan Smith to hospital after he
sustained a broken leg
Elsewhere, England and Chelsea
skipper John Terry could return to
Loftus Road to face Queens Park
Rangers if they overcome MK Dons
in a replay just days before he is due
to appear in court over allegations that
he racially abused Rs defender Anton
Ferdinand during their match in
Spurs face Watford in a London
derby, while Arsenal will meet Aston
Villa at Emirates Stadium if they beat
Leeds tonight and Fulham have been
drawn away at Everton.
Brighton or Wrexham v Newcastle
Sunderland v Middlesbrough
Dagenhamor Millwall v Southampton
Hull v Crawley
MK Dons or QPR v Chelsea
West Brom v Norwich
Blackpool v Sheffield Wednesday
Arsenal or Leeds v Aston Villa
Stevenage v Notts County
Watford v Tottenham
Liverpool v Manchester Utd
Derby v Stoke
Everton v Fulham
Macclesfield or Bolton v Swansea
Sheffield Utd v Birmingham or Wolves
Notts Forest or Leicester v Swindon
* Ties to be played on weekend of
January 28/29.
Hughes tipped for QPR after Warnock axed
FORMER Fulham and Manchester
City boss Mark Hughes is expected to
be installed as QPR manager this
week after the Premier League strug-
glers last night sacked Neil Warnock.
Warnock (right), who led Rangers
back into the top flight after a 15-year
absence last season, paid the price for
a run of eight defeats in 12 games
that has dragged the west Londoners
to 17th in the table.
Hughes, out of work since quitting
Fulham in the summer, was last
night made the odds-on favourite
with most bookmakers to be handed
the reins at Loftus Road.
QPR owner Tony
Fernandes, who
took over the
club in August,
defended the
decision to axe
Warnock and hint-
ed at the imminent
appointment of his
We have been open
and transparent and soon
the future will be
unveiled and what we are
trying to achieve,
Fernandes wrote on
micro-blogging site
Twitter. Trust me in my 47
years of life I have never
had to make such a tough
decision. But I got to do
what I think is right.
Its tough being a
Warnock, the sec-
ond top-flight boss to
be sacked this season
after Sunderlands
Steve Bruce, expressed
regret that the
Fernandes regime had
not taken charge earlier.
Obviously Im very
disappointed, but hav-
ing achieved so much I
leave the club with a great sense of
pride, he said. My biggest regret is
that the takeover didnt happen earli-
er, because that would have given me
the opportunity to bring in the tar-
gets that Id pinpointed all last sum-
mer and probably given us a better
chance to succeed in the Premier
Fernandes, who also runs airline
Air Asia and Formula One team
Caterham, said the clubs slump had
forced the board to make a decision.
The Malaysian added: Sadly, our
recent run of poor form has seen us
slip alarmingly down the table and
the board felt it was the right time to
make a change.
32 CITYA.M. 9 JANUARY 2012

Having seemingly overcome a December
wobble to reassert their dominance by
beating Liverpool last week, City now find
themselves facing another test of their
resilience. Gone is their unbeaten home
record; can they quickly recover with a
number of tricky fixtures on the horizon?
City, already trailing 1-0, were plunged
further into the mire when Kompany was
shown a straight red card for a two-foot-
ed tackle on Nani. Ferguson, naturally,
agreed with the decision, while Mancini
vowed to appeal the dismissal, although
Football Association rules leave little
hope of the sending off being rescinded.
l United dump out 10-man rivals in FA Cup thriller
l Rooney scores twice and pledges future to club
l Trip to Liverpool up next for Fergusons men
TWO-GOAL hero Wayne Rooney
pledged his future to Manchester
United after helping them take
revenge on their bitter rivals and set
up another combustible FA Cup tie
against Liverpool.
A Rooney brace and a
strike from Danny
Welbeck inflicted
Manchester Citys first
home defeat since 2010
retribution for their
6-1 drubbing of United
in October and
ensured the holders and
Premier League leaders
fell at the third round.
City suffered from Vincent
Kompanys contentious early sending-
off, but rallied after the break when
goals from Aleksandar Kolarov and
Sergio Aguero took them to the brink
of an unlikely comeback.
United stalwart Paul Scholes
sprung a major shock by coming out
of retirement to appear as a substi-
tute, but it was the ruthless Rooney
who proved decisive and then rub-
bished speculation that he is for sale.
Everything that has been in the
press of late is a load of nonsense real-
ly, said the England striker. There is
no problem for me at this club, I want
to be at this club for a long time.
Manager Sir Alex Ferguson echoed
his players message comparing him
to troubled former England midfield-
er Paul Gascoigne but castigated his
team for allowing 10-man City to claw
their way back into the game.
Wayne is a headline-maker, good
or bad, said Ferguson. Weve seen
the good today but any flaws will be
absolutely annihilated by the press.
He added: We got careless and
made City better than they were.
Fortunately we scrambled away with
a victory from a position where we
should have battered them.
City manager Roberto Mancini,
who vowed to appeal a red card
that increases Kompanys
imminent suspension to
four games, insisted his
teams recovery gave him
renewed belief they
could hold off champi-
ons United in the league.
If we have the same
attitude and same strength
every game, we will win the
league, said the Italian.
Rooney gave United the lead in the
10th minute when he met Antonio
Valencias pacy right-wing cross with
a powerful header that arrowed into
the top-left corner.
Kompanys dismissal for a two-
footed lunge on Nani swung the
contest further in the visitors favour;
Welbecks expertly hooked volley and
Rooneys penalty follow-up rammed
home their advantage. City were
handed a lifeline when Kolarovs free-
kick beat Anders Lindegaard and
Agueros poachers strike cut the
deficit further.

United call Scholes
out of retirement
MANCHESTER United sprung a huge sur-
prise ahead of yesterdays match by hand-
ing a new short-term deal to Paul Scholes,
after the 37-year-old midfielder opted to
come out of retirement for the rest of the
season. Scholes, who hung up his boots at
the end of last season and had been work-
ing as a United coach, played 30 minutes as
a substitute. Wayne Rooney said the first
players knew of it was when they saw his
shirt in the dressing room pre-match.
7 January, D 1-1 v MK Dons (A)
2 January, L 1-2 v Norwich (H)
31 December, L 1-0 v Arsenal (A)
27 December, D 1-1 v Swansea (A)
21 December, L 2-3 v Sunderland (H)
18 December, L 0-2 v Man Utd (H)
10 December, L 1-0 v Liverpool (A)
3 December, D 1-1 v West Brom (H)
26 November, L 2-1 v Norwich (A)
19 November, W 2-3 v Stoke (A)
5 November, L 2-3 v Man City (H)
30 October, L 3-1 v Tottenham (A)
Rangers lose patience with manager after run of eight defeats from last 12 games leaves them on brink of relegation zone