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www.cityam.com Issue 1,413 Wednesday 29 June 2011 FREE

BUSINESS WITH PERSONALITY
Certified Distribution
02/05/11 till 29/05/11 is 103,467
MICHAEL GOVE BACKS
OUR MATHS CAMPAIGN
MICHAEL Gove, the education secre-
tary, will today throw his weight
behind our campaign to improve
financial literacy by boosting the
number of students who study fur-
ther maths at A-Level.
In a speech at the Royal Society on
the importance of maths in the cur-
riculum, Gove will
back our call for
City workers
and firms to
donate to FMSP,
a charitable
project that sup-
ports the teach-
ing of further
maths in schools
and colleges.
The Further
Maths Support
Programme (FMSP) trains teachers in
state schools to deliver the advanced
maths A-Level qualification and pro-
vides tuition directly to students.
Gove will say: I strongly welcome
City A.M.s campaign for the City to
donate to the Further Maths Support
Programme.
Their budget last year was a paltry
1.5m small change for the City
but with this tiny budget they have
had enormous success.
Gove will call on City institutions to
donate some of their profits to FMSP,
making it financially secure and less
dependent of the temporary affec-
tion of politicians.
Since its launch in 2005, FMSP has
managed to double the number of stu-
dents studying further maths at A-
Level from
5,627 to
11,312.
However,
just one in
seven stu-
dents study-
ing for a
maths A-
Level also
picks further
maths, even
though it is often
demanded by the top university
mathematics departments such as
Cambridge, Oxford, Warwick and
Durham.
With more funds, the FMSP would
be able to boost the number of oppor-
tunities for state school pupils to study
A-Level further maths while training
even more teachers to be able to deliv-
er the qualification.
Charlie Stripp, chief executive of
Mathematics in Education and
Industry the charity that runs FMSP
said people with highly developed
maths skills were essential to the suc-
cess of the City, as well as Britains
manufacturing and technology indus-
tries.
Meanwhile, Gove will say that
schools are not producing anywhere
near enough mathematically educat-
ed people for universities and busi-
nesses.
He will add: Modern science and
technology are built on a foundation
of mathematically educated people.
However, half of our children leave
school without even a C in GCSE
maths, only one in ten does A-Level
maths.
We are almost unique among
advanced countries in not expecting
pupils to continue with maths
between 16 and 18 we must change
path.
He will pledge to expand training
for maths teachers and call on the
maths and science communities to
work with universities and businesses
to develop a range of new non-A-Level
courses that focus on statistics, proba-
bility and risk.
Gove will also argue that a lack of
statistical skills meant most of society
including politicians were unable
to follow the debates around the caus-
es of the 2008 financial crisis.
ALLISTER HEATH, MORE: P2 Michael Gove said 1.5m was small change for the City Pic: Micha Theiner/CITY A.M.
BY DAVID CROW
POLITICS

FRENCH finance minister Christine

Lagarde was confirmed as the new
head of the International Monetary
Fund (IMF) last night, the first woman
to be appointed to the role.
Lagardes success was effectively
sealed earlier in the day when US
Treasury secretary Timothy Geithner
added the American governments sup-
port to her candidacy.
Geithner praised Lagardes excep-
tional talent and broad experience,
opening the way for the official
announcement and a chorus of
endorsements from global politicians.
The appointment is good news for
the global economy, echoed chancel-
lor George Osborne.
French president Nicolas Sarkozy
called the news a victory for France.
Lagardes first move last night was to
urge the Greek opposition party to sup-
port the government in pushing
through a new austerity plan.
The IMF pushed ahead with her
appointment despite an unresolved
legal case in France looking at
Lagardes role in a 2008 arbitration pay-
out to a French businessman.
BY JULIAN HARRIS
POLITICS

Lagarde confirmed as first female boss of IMF

News
2 CITYA.M. 29 JUNE 2011
Businesses must back our campaign
BRITAIN faces a huge challenge.
Innumeracy and financial illiteracy
are rife in this country, in an appalling
indictment of years of failed educa-
tional policies. Tragically, millions of
people are unable to grasp fully even
the most basic of financial products,
such as mortgages or savings
accounts. In an era when self-reliance
and financial independence are essen-
tial, this is a catastrophe and means
that many families dont have the
basic tools to run their lives properly.
Millions are unable to work out how
much they need to save to retire; oth-
ers dont understand the conse-
quences of using finance to buy cars
or how much extra they would end up
paying. Even the basics, such as the
concept of compound interest, are a
challenge. There is also a limited
understanding of economics or of
how to value assets, such as property,
making bubbles much more likely. It
is a shameful failure.
This lack of understanding caused
by defective state education, a media
that is loose with numbers, and insuf-
ficient effort from the financial servic-
es industry is one reason why there
is so much distrust of the City. For the
good of the public, the UKs future
competitiveness and the reputation of
financial firms, it is imperative that
this disastrous situation be addressed.
Encouragingly, Michael Gove, the edu-
cation secretary, will today outline in
an excellent speech ways to begin to
tackle this by placing maths and sta-
tistics back at the heart of the curricu-
lum. But government action isnt
enough: the City must also step in
with extra money.
For a while now, I have been looking
for charities for City A.M. to endorse as
part of our campaign to bolster finan-
cial literacy. There can be no progress
in the popular understanding of
finance without improvements in
mathematics skills, so to boost finan-
cial literacy means investing in better
and more maths. I would therefore
urge readers to support Mathematics
in Education and Industry, a brilliant
charity which operates the Further
Maths Support Programme. This
trains teachers in state schools to
deliver the advanced maths A-Level
qualification, provides tuition directly
to students and offers a range of
online learning methods. Run by
Charlie Stripp (go to www.mei.org.uk
and see profile below), it has done
wonders with limited funding.
The aim ought to be to double its
budget from 1.5m to 3m over the
next year. This means raising an extra
1.5m in private donations readers,
please take out your credit cards. Gove
will today back our appeal to the City
to raise funds for the FMSP. He protect-
ed the project in the Spending Review
and wont cut its funding but in
these present austere times, the City
must put its hands in its pockets to
help it increase the good work it
already does.
Financial institutions should see
donations as a good way to help
rebuild their reputation. In the short-
term, donations would deflect from
the populist anti-City rage. In the
longer-term, better educated con-
sumers would make better decisions,
reducing mis-selling or mis-buying
scandals; people would be more com-
fortable with financial products, and
finance in general, and therefore less
likely to view banks, funds and insur-
ers as inherently evil or corrupt. Most
important of all, however, building a
more numerate and financially liter-
ate society would help millions of peo-
ple regain control of their lives.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
NEWS | IN BRIEF
BoI backs down on bonds
Bank of Ireland (BoI) ended a heavily
discounted debt-for-equity offer on a
junior bond yesterday, blaming adminis-
trative difficulties. The bond, originally
sold by the Bristol & West Building
Society and taken over by BoI in 1997,
has a face value of 75m, representing
just over three per cent of the junior
bondholders the bank is trying to
impose losses on. But most of the Bristol
bond holders were yet to accept its offer
of an 80 per cent loss of value ahead of
a restructuring, compared to 74 per cent
acceptance on its other bonds.
BofA nears $8.5bn mortgage deal
Bank of America is close to a deal to pay
$8.5bn (5.3bn) to settle claims from a
group of investors that lost money on
mortgage-backed securities, a source
familiar with the process said yesterday.
The settlement would be the largest
such sum in the banking industry to
date. The largest US bank by assets has
been fighting claims by a group of 22
investors, which includes BlackRock and
Pimco, over the housing-related securi-
ties it packaged and sold before the
financial crisis.
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
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self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
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Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
IT might not be the most fashionable
cause in the world, but Mathematics
in Education and Industry (MEI) is a
charity with a proven track record.
When Charlie Stripp, its chief exec-
utive, quit his teaching job in 2000 to
join the charity, the death-knell had
already been sounded for A-Level fur-
ther maths. In 2003 just 5039 English
students took the qualification.
Even the best universities were
forced to drop the A-Level from their
degree entry requirements there
simply werent enough state schools
giving students the chance to take it.
Cut forward to 2010, and 11,312
students took the qualification in
England twice as many as in 2005.
Much of that increase is down to
the Further Maths Support
Programme, the initiative that MEI
developed, starting as a small pilot
with the help of a grant from the
Gatsby Foundation and latterly as a
national scheme funded through the
Department for Education.
Stripp and his colleagues have
helped to boost the number of fur-
ther maths candidates by training
existing teachers and, where neces-
sary, arranging for specialists to give
tutorials to students, either in school,
at local universities, or online.
The charity aims to help students
become independent learners rather
than being spoon fed. At the heart
is the belief that mathematicians are
essential for Britain to succeed in
finance, engineering and science.
But for Stripp, it is as much about
improving the lives of disadvantaged
students. The potential of these stu-
dents must be realised, he says.
Some of them come from a less
advantaged home culture, but if
theyre talented in maths they can
transcend their background.
Partly as a result of the efforts of
Stripp and his colleagues, the best
universities have started to again
demand a further maths A-Level
from prospective candidates.
However, just one out of seven A-
Level maths students also sits the
harder exam still far too low. Stripp
estimates that around a quarter of A-
Level maths students should take it.
With extra resources to enable
them to train more teachers to teach
at this level, and support more
schools and colleges to improve their
mathematics provision, MEI and the
FMSP could do even more to expand
opportunities for young people to
learn the mathematical
skills needed to sup-
port our economy.
Thats why were
calling on the City
to make a differ-
ence, by donat-
ing generously
to the Further
Maths Support
Programme.
BY DAVID CROW
PROFILE

CHARLIE STRIPP
The man with a passion for promoting maths
To donate to the
FURTHER MATHS
SUPPORT PROGRAMME,
contact Charlie Stripp
charlie.stripp@mei.org.uk
www.mei.org.uk
DIRECTORS PAY AND PENSIONS UNDER
SCRUTINY
FTSE 100 directors have amassed final
salary pension pots averaging 2.8m,
according to research, while trade
union bosses came under fire for
their pay packages before Thursdays
strike by up to 750,000 teachers and
civil servants on pension reform. A
survey of 137 directors by Incomes
Data Services, the pay analyst, found
such a pot could buy a pension annu-
ity worth more than 170,000 a year.
FEARS RAISED OVER NORTHUMBRIAN
WATER BID
An investment vehicle controlled by a
leading Asian tycoon has been
accused by an MP of keeping
Northumbrian Waters 3,000 staff in
the dark and urged to divulge any
plans to launch a bid for the compa-
ny. The comments from Kevan Jones
MP came after Cheung Kong
Infrastructure disclosed that it was
considering making a cash bid.
TORY DONORS IN FUNDING THREAT
OVER HIGH SPEED 2
Several Conservative donors have
warned the prime minister that they
will withdraw funding from the party
if the coalition presses ahead with its
plans for a high-speed rail link, it
emerged on Tuesday. David Begg,
director of the Campaign for High-
Speed Rail, admitted that the project
was not a done deal by any means,
given the voluble resistance from
some Tories living near the proposed
route.
CHINA IN QUEST FOR SHALE GAS
RESERVES
Chinas search for natural gas passed
a landmark this week as the govern-
ment launched its first tender offer
for four shale gas blocks in southern
China, underlining Beijings determi-
nation to move forward with develop-
ing unconventional gas resources.
GOLDMAN PREPARES TO SPREAD
ROOTS CLOSE TO ST PAULS
Goldman Sachs has appointed a lead-
ing American developer to draw up
plans for a one million sq ft ground-
scraper yards from its London head-
quarters. The investment bank has
appointed Tishman Speyer, which
developed its New York offices, The
Times understands.
A MILLION TAXPAYERS WILL BE TOLD
TO PAY MORE
The Government is set to claw back
money from more than a million peo-
ple who unwittingly paid too little in
tax over the past year because they
were given the wrong tax codes. HM
Revenue & Customs revealed yester-
day that 1.2m taxpayers owed the
Government an average of 600. Any
amount less than 50 will be written
off. However, as many as 3.5m people
could get a cheque through the door.
PRINCE OF WALES'S HOUSEHOLD
GROWS AND SPENDING INCREASES
The Prince of Wales took on ten extra
staff and increased his spending on
travel by more than 50 per cent last
year, his annual accounts show. Prince
Charles employed the equivalent of
158.9 full-time staff at the end of the
financial year, including 26 personal
staff, compared with 149 the year
before.
UK CITIES TO COMPETE TO ATTRACT
NEW BUSINESS WITH LOWER TAXES
Britain's cities are to be encouraged to
compete with one another to lower
business rates and attract more firms
to set up in their areas, under plans to
be unveiled by ministers next month.
Local authorities are set to be allowed
to keep money raised from business
rates and decide the tax's level them-
selves. A cap will be imposed by the
Government .
SIEMENS SEES SIGNS OF SLOWING
GROWTH
German industrial conglomerate
Siemens, a barometer of the worlds
manufacturing industry, said yester-
day that although it expects sales and
orders to rise in the fiscal third quar-
ter, there are signs of slowing growth.
The tailwind from the economic
recovery is likely over. Now, increased
efforts are required for continued
growth, Siemens chief financial offi-
cer Joe Kaeser told analysts.
ZYNGA PREPARING TO FILE IPO
Online social gaming company Zynga
is preparing to file for an initial pub-
lic offering as early as Wednesday and
hopes to raise up to $2bn, people
familiar with the matter said. The
maker of the popular FarmVille
games has picked Morgan Stanley to
lead the offering, with Goldman
Sachs also a lead underwriter.
WHAT THE OTHER PAPERS SAY THIS MORNING
ATHENS was in lockdown yesterday
as riots spread through the city and
unions kicked off a two-day strike to
coincide with a crucial budget debate
in parliament.
Thousands of protesters filled the
streets amid the shattered glass of
shop windows, wielding sticks,
throwing stones and starting fires.
The police retaliated with tear gas
and stun grenades.
Communist trade union PAME
draped banners around the
Parthenon that read: The peoples
have the power and never surrender.
Parliament faces the first of two
major votes on its latest austerity
budget today, with several govern-
ment MPs already indicating that
they are likely to vote against the
measures.
If Greece cannot get the 28bn
worth of cuts and at least 50bn of
state asset sales through parliament,
it will not qualify to receive its next
instalment of bailout aid, worth
12bn, and will default in July.
The government has a majority of
155 in a parliament of 300, but with-
out any opposition support, Prime
Minister Papandreou has been forced
into horse-trading with his own
Socialist party members to get a bill
passed.
In an attempt to shore up party
support, he replaced his finance min-
ister, George Papaconstantinou, with
a party stalwart Evangelos Venizelos
last week, but he might have to make
further concessions to survive.
Despite the strife, markets are bet-
ting on Greece passing the budget
and qualifying for its next tranche of
aid.
Investors appeared to be cheered by
the prospect of a deal by Eurozone
banks to share some of the cost of the
bailout, sending the Eurostoxx 50 up
one per cent and the FTSE 100 up 0.8
per cent. The euro rose 0.4 per cent
versus the greenback and 0.5 per cent
against sterling.
GREEK BAILOUT RISKS: P20
Rioters shut
down Athens
before vote
*
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BY JULIET SAMUEL
EUROZONE

CONCERNS of contagion from

Greeces fiscal crisis were stoked
yesterday by an Italian bond auc-
tion in which the sovereign was
forced to pay far higher rates for
cash than in previous sales.
The auction of 2021 Italian debt
only met with lacklustre demand,
attracting a bid-to-cover ratio of
1.334 times compared with 1.504
times previously.
That was part of 7.9bn (7.07bn)
worth of Italian debt put on auction
yesterday.
The sale has added to growing
concerns that Italy and Spain may
no longer be immune to contagion
from the debt crisis that prompted
Greece, Ireland and Portugal to seek
financial help.
Yields on Italian 10-year debt
closed at 4.98 per cent yesterday.
Contagion fears build as
Italys forced to pay more
EUROZONE

3 CITYA.M. 29 JUNE 2011

Greek police clashed with protestors in Athens yesterday Picture: REUTERS
SPANISH lender Bankia is expected to
publish the prospectus for its 4bn
(3.6bn) initial public offering (IPO)
today, as bankers begin bookbuilding
in a deal viewed as one of the most
important cash raisings in Europe
this year.
A smooth listing of the caja would
lend support to the Spanish govern-
ments overhaul of the banking sector
and would be viewed as a bellwether
moment for the future of the
Eurozones banks.
Such is the importance placed on a
successful listing that a pulled IPO
may contribute to an early election in
the country, banking and political
sources say. Its the most important
deal Ive ever worked on, a senior
banker on the deal told City A.M..
Bankia, formed from seven region-
al savings banks, plans to raise up to
4bn by listing about 40 per cent of its
capital to plug a capital hole after the
state forced unlisted cajas to get pri-
vate capital on board or face national-
isation.
The lender, which last week
delayed the publication of its prospec-
tus, will set the final price for its
shares on 14 July and make its stock
market debut on 18 July.
Bankia gets
share offer
underway
CAPITAL MARKETS

BRADY: THE GREEK BRADY PLAN

Q.
WHATS THIS ABOUT A GREEK
BRADY PLAN?
A.
Its the name given by some com-
mentators to the deal being nego-
tiated between Eurozone banks to roll
over their Greek debt so as to defray
the costs of the new bailout that
Europe is putting together.
Q.
WHATS THE BRADY PLAN?
A.
The original Brady plan was
drawn up in 1989 by then US
treasury secretary Nicholas Brady. The
aim was to allow American banks to
get millions in Latin American sover-
eign loans off their balance sheets by
converting them into lower-value
tradeable bonds collateralised by the
US government. In effect, the US was
bailing out its banks failing Latin
American loan books.
Q.
SO WHATS THE GREEK
EQUIVALENT?
A.
The French deal, on which a
broader Eurozone deal is likely to
be based, involves setting up a special
purpose vehicle (SPV) that will hold a
blend of triple-A rated bonds and
Greek bonds. As banks Greek debt
matures between now and 2014, they
will reinvest 70 per cent of the pro-
ceeds in the SPV, as an equity stake.
For every 70 it receives, the SPV itself
will use 50 to buy new 30-year Greek
bonds, and 20 to buy triple-A rated
bonds either from other sovereigns or
from an EU bailout
fund. The new Greek
government bonds it
buys will have an interest rate of 5.5
per cent plus additional pay-outs
linked to Greek GDP growth, within
limits of zero and 2.5 per cent.
Q.
WILL THIS SAVE GREECE?
A.
It will enable the EU to claim
some kind of victory in getting
banks to share the cost of a new
bailout and should avoid an immedi-
ate default rating, but it is unlikely
that a new bailout will save Greece.
The original Brady bonds were accom-
panied by restructuring. The Greek
ones arent yet.
Q A
&
Focus on Eurozone
AIR passengers have been told to
expect severe disruption tomorrow as
the UK Border Agency joins the mas-
sive public sector strike action.
The Public and Commercial Services
union, which includes UKBA staff, has
called a 24-hour strike starting this
evening.
UKBA warned yesterday that queues
for border control at UK air-
ports, ports and interna-
tional train stations
will be longer than
usual, though it said
the agency would try
and keep delays to a
minimum.
It said that visa
applications in the UK
would also be affect-
ed, asking customers
with appointments
tomorrow to resched-
ule.
Prime Minister David
Cameron condemned the widespread
strike action yesterday, saying in a
speech: In a democracy, people can go
out and protest. But the people march-
ing should know what theyre object-
ing to, and I believe there are some
misconceptions flying around.
So to those considering strike
action, at a time when discussions are
ongoing, I would say to you: these
strikes are wrong -- for you, for the peo-
ple you serve, for the good of the coun-
try. Its the changes
we propose that are
right.
Up to 750,000
teachers and civil
servants are expect-
ed to strike in
protest against
changes to their
pension schemes
designed to save money.
Schools and government
offices are set to shut, and
unions have planned a march
down Whitehall to protest in
front of Parliament.
Strike action
means delays
at UK airports
BY MARION DAKERS
PUBLIC SECTOR

AIRLINES and travel companies were

warned yesterday that they face pun-
ishment over their hidden credit
and debit charges.
An investigation by the Office of
Fair Trading (OFT), found evidence of
companies using drip pricing tac-
tics where surcharges are added to
the full price only after consumers
have filled in a number of web pages.
The OFT estimates that consumers
spent 300m on payment surcharges
during 2009 in the airline sector.
Its report showed that easyJet
charges 8 per card transaction after
customers pass through eight web
pages while Ryanair adds 6 after
four pages.
Ryanair has shrugged off the state-
ment by the OFT, saying that it is
unaffected and denied levying any
credit card charges.
Airlines face legal action over
misleading debit card charges
AVIATION

LONDON-based clearing house

LCH.Clearnet is in crunch talks this
week over a possible takeover deal in
the latest wave of global exchange
consolidation, City A.M. understands.
Boardroom discussions are taking
place this week at the worlds largest
swaps clearing house, as the firm
weighs bids from several potential
suitors that could value it at any-
where up to 1bn (897m).
Approaches are understood to have
come in from the New York Stock
Exchange (NYSE), in conjunction with
data provider Markit, and rival US
bourse operator Nasdaq.
Senior staff at LCH.Clearnet have
been told to cancel leave in order to
evaluate the offers being tabled, City
A.M. understands.
The development comes after it
emerged that Nasdaq made a bid for
a minority stake in the company earli-
er this month.
NYSE chief Duncan Niederauer also
revealed earlier this month that his
bourse was in talks to buy the firm.
The London Stock Exchange had
also been linked with a bid for the
company, although later said it was
not in discussions with LCH.Clearnet.
LCH.Clearnet declined to com-
ment.
LCH.Clearnet in crunch talks
over possible takeover deal
BY RICHARD PARTINGTON
CAPITAL MARKETS

News
4 CITYA.M. 29 JUNE 2011
NICK LESLAU BUYS ST KATHARINE DOCKS
Property mogul Nick Leslau has bought St Katharine Docks, near Tower Bridge, for
156m. Leslaus Aim-listed Max Property Group teamed up with Newmarket Property
Holdings, a subsidiary of an overseas family trust, to buy the marina and office for 330
per square foot. Leslau, whose stake in Max property is worth over 21.5m according to
The Sunday Times Rich List, called the docks one of Londons jewels. Picture: REX
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EAGER investors sent Standard
Chartereds stock up 2.9 per cent yes-
terday after a half-year trading state-
ment that promised double-digit
growth in both income and pre-tax
profits compared to the same period
last year.
The bank said that while some
regions like India and Africa had
seen revenues dip, it was more than
offset by very strong performances
in eastern Asia.
Net margins were largely
unchanged but the bank promised
little increase in its cost-to-income
ratio, saying that managing expens-
es tightly remains a priority. Along
those lines, it reported that head-
count is down slightly on last year.
Wholesale banking is to lead the
revenue growth, but will suffer from
higher costs, with consumer banking
seeing the opposite slower top line
improvement but progress on shrink-
ing the divisions cost base.
A slew of positive analyst com-
ments drove the banks shares up
throughout the day to a closing price
of 1,584.5p.
Killik & Cos Nick Sotiropoulos said
of the bank: It is at a significant pre-
mium to the other UK-listed banks
and appears fairly valued.
BNP Paribas analyst L. Sin Fai Lam
also said that the bank deserves a pre-
mium: Once again, Standard
Chartered is proving to be one of the
more resilient banks in the UK, with
stronger visibility on earnings and
lower downgrade risk.
StanChart
defies British
bank gloom
FSA CHIEF Hector Sants has accused
banks of not getting to grips with
their customer service failings yester-
day, saying that the City is simply
expecting its new regulator to solve
the problem.
Sants criticism was echoed by
Margaret Cole, who will head up the
new Financial Conduct Authority
(FCA) when it is created to replace
part of the FSA next year.
She characterised the Citys record
on customer service as a series of bit-
ter experiences for consumers and
said: The culture of treating cus-
tomers fairly should come from the
top. We would like to see a higher
degree of engagement at a senior
level.
Sants called for a three-cornered
bargain between society, us and the
firms to improve customers experi-
ence and said it would be a mistake to
hold regulators wholly responsible
for any changes.
He added that the FSA would use
its regular meetings with banks sen-
ior management to try and persuade
them to engage on the issue.
But both Cole and Sants denied
they are taking a confrontational
approach, saying instead that it was
an open and honest discussion.
Sants: the City
needs to take
FSA seriously
Standard Chartered chief Peter Sands has good reason for cheer Picture: REUTERS
BY JULIET SAMUEL
BANKING

BY JULIET SAMUEL
REGULATION

News
6 CITYA.M. 29 JUNE 2011
ANALYSIS l Standard Chartered
p
22Jun 23Jun 24Jun 27Jun 28Jun
1,580
1,560
1,540
1,520
1,584.50
28 Jun
Sands gets grip on higher costs
WHEN Peter Sands unveiled
Standard Charters full-year results
in March, he said the bank was
engaged in a war for talent. The
demand for top flight bankers who
can speak Cantonese or Mandarin is
higher than ever, and StanChart is
having to fight both HSBC and local
rivals to sign the best staff.
As the son of a naval officer,
Sands will know that fighting a war
is not cheap. The only dark spot in
an otherwise glittering set of annu-
al results was costs, which surged
by 13 per cent in 2010 compared
income growth of 5.8 per cent.
The most encouraging thing
about yesterdays statement was
that costs have grown broadly in
line with income, meaning the
bank is operating with a cost-to-
income ratio of around 56 per cent.
That should remove nagging
doubts that Standard Chartereds
growth is down to a spend, spend,
spend strategy. It trades at a premi-
um to all the other UK banks, but
this is more than deserved.
BOTTOMLINE
Analysis by David Crow
BRITISH bingo and casino operator
Rank Group said its chief executive
and finance director both quit yester-
day over the 586m bid approach by
Guoco, the investment group run by
Malaysian billionaire Quek Leng
Chan.
Ian Burke, chief executive and
Paddy Gallagher, finance director
stepped down a day after the board
changed its recommendation yet
again on how investors should
respond to the offer of 150p-a-share
from the group.
Ranks board had initially rejected
the bid in May, only to change its
stance last Thursday on concerns that
shareholders risked being left hold-
ing a minority stake in a delisted com-
pany, making it hard for them to sell
their shares.
That recommendation was then
changed again on Monday, with the
board telling investors it felt that the
offer still undervalued the company
and that shareholders who are not
concerned that the listing may at
some stage be cancelled should
reject the bid.
In its statement yesterday Rank
said Burke and Gallagher disagreed
with this, saying that after talks with
institutional shareholders, that it was
now more than likely that the offer
will result in a cancellation of the list-
ing of Ranks shares.
Rank declined to comment further.
Shares in the group fell 0.2 per cent
and closed at 149.60p.
Directors at
Rank resign
BY KASMIRA JEFFORD
LEISURE

Ian Burke, former finance director Paddy Gallagher, former chief executive
News
7
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ANALYSIS l Rank Group
p
28Mar 15Apr 11 May 1 Jun 21 Jun
154
148
146
152
150
140
144
142
149.60
28 Jun
RUSSIAN fertiliser producer PhosAgro
has priced its joint London and
Moscow share sale at a deep discount,
as it looks to raise up to $500m
(312m).
The phosphate fertiliser firm has
set a price range of $13 to $16.50 per
global depository receipt (GDR), valu-
ing the company at as much as
$6.1bn.
The listing price is about 30 per
cent below the top-end valuation
given by analysts of up to $9bn, indi-
cating the lengths firms are prepared
to go to for a successful float.
At least seven Russian companies
have pulled floats, with investors espe-
cially reluctant to buy existing shares
sold by wealthy businessmen, rather
than new shares to fund the compa-
nys long-term growth.
Politician Andrei Guryev, the major-
ity owner of the company, is selling
down a 10 to 15 per cent stake in the
sale.
Sources close to the deal said
investors had responded warmly to
the initial public offering (IPO) at the
pre-marketing stage.
Sibur, a Russian chemicals firm, has
also emerged as a likely cornerstone
investor, adding to the likely success
of the float. The firm, which is
Russias largest petrochemical produc-
er, is said to be considering a $100m
purchase.
PhosAgro will be hoping to capi-
talise on the success of Global Ports,
the Russian container terminal opera-
tor that last week defied difficult
European markets and a poor track
record for Russian floats to get its
$534m listing away.
Discount IPO
for PhosAgro
BY RICHARD PARTINGTON
CAPITAL MARKETS

VODAFONE will complete the sale of

its Polish assets by the end of this
week, City A.M. has learned.
It is understood the 24.4 per cent
stake in Polands Polkomtel will
be worth in the region of 1bn.
Tycoon Zygmunt Solorz-Zak is
understood to be ready to seal a deal
to buy Polkomtel worth in the
region of 4bn, beating competition
from rivals Apax and Telenor.
Vodafone this month announced
it has completed the 6.8bn sale of
its 44 per cent stake in SFR to
joint venture partner Vivendi. It will
also receive a final dividend from
SFR of 176m.
The sale is part of Vodafones
strategy to exit its non-core assets.
It has already sold its minority
interest in China Mobile for 4.3bn
and in Japans Softbank in a deal
worth 3.1bn.
Vodafone ready to seal 1bn
sale of its stake in Polish telco
BY STEVE DINNEEN
TELECOMS

News
8 CITYA.M. 29 JUNE 2011
Vittorio Colao, Vodafone chief, is selling a stake in Polkomtel. Pic: Micha Theiner/City AM
STEVE KALE is on the team from
Citigroup acting as joint global coordi-
nator and bookrunner on PhosAgros
initial public offering (IPO).
As director in the European equity
capital markets team, he is responsible
for Russia and has more than 20 years
of investment banking experience.
Earlier this year he worked on the
aborted float of Russian coking coal
producer Koks. In 2007, he worked on
the $8bn float of Kremlin-backed
lender VTB. Roger Barb, managing
director in equity capital markets, is
also working on the deal for Citi.
Renaissance Capital is also acting as
joint global coordinator and bookrun-
ner on the float. Equity sales director
Jonathan Williams is working on the
listing from London. The banks deputy
chief executive in Russia, Alexander
Merzlenko, is working on the float
from Moscow.
Credit Suisse, Troika Dialog and
BMO Capital Markets are also acting
as joint bookrunners on the deal.
MEET THE ADVISERS: CITIGROUP
STEVE KALE
CITIGROUP
ANALYSIS l Vodafone
p
28Mar 15Apr 11 May 1 Jun 21 Jun
185
175
165
162.48
28 Jun
ANALYSIS l How the Goldman note moved insurers
News
9 CITYA.M. 29 JUNE 2011
LLOYDS insurer Hiscox dismayed
investors yesterday as it admitted
its catastrophe losses for the first
half of this year would be in excess
of 200m.
Hiscoxs shares closed 1.6 per
cent lower after it said it would
hold close to $150m (94m) in
reserves, at the top end of its esti-
mated range, against claims from
the Japanese earthquake in March.
As there continues to be consid-
erable uncertainty around the
Japanese earthquake we have
reserved at the upper end of our
modelled range, it said in a state-
ment. It had forecast losses in the
range of $60m-$100m.
The Bermuda-based
insurer and reinsurer
also estimated it
would pay a net 35m
in US tornado claims in
the first half. The torna-
do season has caused an
estimated $15-$25bn in
insured losses so far.
But chief executive
Bronek Masojada said disci-
plined underwriting had
allowed us to keep our
powder dry, leaving
Hiscox ready to take
advantage of reinsurance
rate increases of ten
per cent for US hurri-
cane cover.
Its first-half reserves
held against catastro-
phes are now double the
level seen in the first half of
2010, when it held 100m,
and further tornadoes could
hit until about August.
Collins Stewart analyst
Ben Cohen said the losses
were a bad quarter and
warned that Hiscox
could see an 80m loss
in its first-half results
and even a small full-
year 2012 loss. RBS
analyst Joanna
Parsons also expected
a first-half loss.
The third earth-
quake to hit
Christchurch in New
Zealand is not expected to
materially affect Hiscox.
Hiscox sees disaster
losses above 200m
BY ALISON LOCK
INSURANCE

INSURANCE broker Jardine Lloyd

Thompson agreed to buy a control-
ling stake in Chiles fourth-biggest
broker yesterday in a bid to
strengthen its presence in the fast-
growing Latin America region.
JLT will buy 50.1 per cent of Alta,
the holding company of Orbital
Corredores de Seguros, a broker
that has been a member of its
international partner network
since last year.
The Alta stake also includes con-
trol of Alta Re, a reinsurance bro-
ker that started up last year. As part
of the deal, JLT has the option to
add a further 25 per cent to its
stake in 2020.
Orbital joins previous JLT
takeovers in Brazil, Columbia and
Peru and as with those, the busi-
ness owners will retain a stake and
both the chief executive and chair-
man will stay in post.
Chile is a well established insur-
ance and employee benefits mar-
ket and this acquisition will add to
our presence in the region, said
JLTs Latin America chief executive
Vyvienne Wade.
It did not disclose the amount
paid for the stake in Alta, which
made $8.1m (5m) net revenue and
$3.4m pre-tax profit last year. It
expects the deal to close in the sec-
ond half of the year.
RBS analyst Joanna Parsons said
the deal was a further piece in the
jigsaw of building JLTs Latin
American operation and we see it
as a definite positive in terms of
strategic development.
JLT is the London Stock
Exchanges largest listed broker,
floating in 1991 before merging
with rival Lloyd Thompson in 1997.
JLT takes majority stake in Chilean
firm in an effort to add global reach
INSURANCE

NEWS | IN BRIEF
AXA bans use of referral fees
AXA UK yesterday banned the practice
of accepting referral fees from personal
injury lawyers when its customers con-
tacted them after an accident. AXA UK,
the subsidiary of the French insurance
giant, said it never sold customer details
to claims firms but would stop accept-
ing any fees from accident management
firms and called for all UK insurers to
stop the practice, which has led to soar-
ing numbers and costs of claims for
whiplash injuries following car acci-
dents. It attributes about half of the
increase in motor insurance premiums to
personal injury claims despite road acci-
dents falling and said encouraging
motorists to claim was unscrupulous.
NZ insurance cover costs soar
Earthquakes in the New Zealand city of
Christchurch have left local insurance
companies and local authorities strug-
gling to source coverage and reinsur-
ance as providers raise costs by up to
150 per cent. Many reinsurers have
pulled out of covering New Zealand
organisations completely as quake
claims hit the limit of cover locally.
Publicly-funded insurers of local coun-
cils, such as Civic Assurance and Local
Authority Protection, have reached the
end of their reserves and stop coverage
on 30 June and 1 July respectively, leav-
ing authorities requiring private insur-
ance at triple the cost.
SHARES in the UKs biggest life insur-
ers moved significantly yesterday after
stockbroker Goldman Sachs published
a review of the companies ratings.
Its analysis concluded that a mas-
sive upswing in demand for financial
protection would not benefit listed life
insurers as new alternatives such as
the government-sponsored National
Employment Savings Trust would grab
market share.
Worryingly, we cannot come up
with a solution to the problems faced
by the industry, and consequently we
are cautious on the sub-sector, the
report said.
Instead it said growth is likely to
come from outside the UK, with
emerging markets best positioned to
generate growth for UK life insurers.
Goldman ranked Old Mutual its top
sector pick because its valuation did
not reflect its fast-growing emerging
markets business as well as its large UK
wealth management platform.
Old Mutual will be lower-risk and
faster-growing than the rest of the sec-
tor, it said.
Asia-focused Prudentials shares
rose more than 2.5 per cent was also
added to the buy list from neutral for
its stand-out strategy.
But life consolidator Resolution and
insurer Standard Life were both cut to
a sell rating due to the low growth
expected in the UK. We believe that
Resolutions UK business is relatively
unattractive, it said.
Aviva, St Jamess Place and Legal &
General were cut to neutral. It said
Aviva had ended a period of outper-
formance which has left inadequate
potential upside to justify a buy.
Insurance stocks
jitter as Goldman
reviews ratings
BY ALISON LOCK
INSURANCE

ANALYSIS l Standard Life

p
08:00 10:00 12:00 14:00
202.5
201.5
200.5
201.80
28 Jun
ANALYSIS l Resolution
p
08:00 10:00 12:00 14:00
294
290
286
282
288.29
28 Jun
ANALYSIS l Prudential
p
08:00 10:00 12:00 14:00
710
690
700
706.25
28 Jun
ANALYSIS l Old Mutual
p
08:00 10:00 12:00 14:00
128.5
127.5
125.5
126.5
127.60
28 Jun
Investors heed the brokers wisdom
Life insurance consolidator Resolution
was the biggest faller on the FTSE 100
this morning after Goldman Sachs cut
its rating to a sell, saying it was
effectively a shrinking business with
little chance of significant uplift to
cash generation. It took most of the
morning for traders to buy back in, but
Standard Life took yet longer, kicking
back into the black only at 3pm follow-
ing Goldmans verdict that it was
dependent on an unattractive mar-
ket. Yet Old Mutual and the Pru
gained 1.9 per cent and 2.7 per cent
respectively after being bumped up to
buy ratings.
over gin cocktails at the FT Summer
Party: I will never retire.
Also at the Lancaster House drinks
were Barclays chairman Marcus
Agius; Arcadia boss Philip Green;
Lloyds Banking Group chief Eric
Daniels; the Bank of Englands
deputy governor Paul Tucker; and
Winterflood Securities life president
Brian Winterflood and his wife
Doreen, spotted in conversation with
Harvey Nichols CEO Joseph Wan.
Chris Huhne also put in a brief
appearance, although The Capitalist
arrived too late to get the latest on the
energy secretarys motoring brush
with the law apparently, he had
already sped off into the night.
CASH IN HAND
OPEN for business opposite the
Goldman Sachs office on Fleet Street:
a new branch of pawnbroking chain
Suttons & Robertsons, which claims
the upwardly mobile are looking to
its services as a way of avoiding hefty
bank charges.
So, a tactical positioning from
the City pawnbroker, which takes
pains to make clear on its shop win-
dow that its cash-for-objects servic-
es are discreet. Has the Goldman
bubble really burst? wondered an
amused observer.
OUT TO LUNCH
FORMER Conservative Party director
general Sir Paul Judge has six jobs
that pay and rather more that
dont and he has added to his list
of unpaid duties by being approved
by the Court of Aldermen as sheriff
of the City of London, effective from
September 2013.
The title dates back to Anglo Saxon
times, when Londons sheriffs were
responsible for law and order in the
City; these days, the sheriffs run the
Old Bailey and assist the Lord Mayor
with his ceremonial duties in the UK
and overseas.
As Judge told The Capitalist of his
new two-and-a-half-day role, an
important part of these duties is
entertaining the Old Bailey
judges over lunch and to be
regaled with their tales of mur-
der and violence.
Still, the man who led the Premier
Brands buyout from Cadbury
Schweppes and reduced the Tories
overdraft by 17m no doubt has the
stomach for the job.
SETTLING SCORES
YESTERDAYS story on the number
of brown shoes creeping on to the
Citys trading floors touched a
nerve, provoking an argument
between two brokers at Central
Markets as to whether brown
footwear is acceptable on dress
down Fridays.
I have been led to believe the
rhyme goes never brown in town,
unless its dress down, wrote con-
fused broking manager Keith Swann,
who has 20 riding on the outcome of
his feud with colleague Ben Phillips.
Unfortunately for Swann, a helpful
adviser at Debretts confirmed: Dress
down is a relatively new phenome-
non, introduced in the last 25 years,
while the original phrase never
brown in town dates back to the mid-
nineteenth century.
IN-HOUSE JOKER
THERE wont be a dull moment at
the Council of Mortgage Lenders
under new director general Paul
Smee (below), the man renowned for
his dry sense of humour while at
the London Stock Exchange.
We were once in a meeting where
we were told about the appointment
of a new head of internal communi-
cations, recalled a former colleague
of Smee from his LSE days.
Paul asked where she was joining
from, to which he was told Marks &
Spencer Financial Services. Quick as
a flash he replied: Does that mean if
we dont like her we can take her
back and ask for a refund?
Then again, perhaps you had to be
there
STRICTLY BUSINESS BRIEF ENDS
VINCE CABLES DANCING DREAM
THERE is something bothering
business secretary Vince Cable
and its not the separation of retail
and investment banking, the Greek
debt crisis or even waging war on
Rupert Murdoch.
No Cable is concerned his
demanding day job could mean he
never fulfils his dream of returning
to Strictly Come Dancing for a full
series of the show, following his one-
off Christmas special where judge
Craig Revel Horwood memorably
described the coalition politician as
leaning slightly to the right.
I would love to go back on
Strictly, Cable told The Capitalist.
But I cant possibly spare the three
months away from work.
Cable took up dancing with his late
wife Olympia in whose memory he
still wears a second wedding ring
alongside one for his second mar-
riage to Rachel but, despite having
passed a number of dancing exams,
he can only squeeze one weekly ball-
room dancing lesson from a private
tutor into his 80-hour week.
Even worse, a three-month break
to enable Cables Strictly comeback
is not even an option when the 68
year-old retires because, as the fox-
trot king explained to The Capitalist
The perfect coalition: Cable with Strictly Christmas special partner Erin Boag Picture: BBC
On the buy side: S&Rs Fleet Street shop
The Capitalist
10
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
CITYA.M. 29 JUNE 2011
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At a glance, clients have access to:
STORMclouds gathered over Cable &
Wireless Worldwide yesterday as it
faced its bleakest day in a dire year.
Shares in the beleaguered telecoms
giant slumped as much as 16 per cent
on yet another profit warning its
third since its demerger from Cable &
Wireless Group.
The impromptu announcement
was accompanied by a letter of resig-
nation from its embattled chief exec-
utive Jim Marsh, described to City A.M.
by one industry watcher as leader of
the most loathed management team
in the FTSE.
Chairman John Pluthero has taken
over the role, saying he will take a
more radical approach to the
restructuring of the business. He
made the firms strongest indication
yet that it will bid for cloud services
provider 2e2, saying he will focus on
building our hosting, cloud and data
services business.
It is also expected Pluthero will
forge ahead with plans to offload the
firms international business, which
provides around 25 per cent of the
firms revenue. Analysts say the unit
could be worth in the region of
650m. Independent director John
Barton has taken over as chairman.
Investors, who have seen the stock
fall from a high of almost 150p in
March last year to a low of 43p, were
also hit with the news C&WW will
slash its dividend by half to 2.25p for
the next financial year.
It now faces an uphill struggle to
turn the firm around, with analysts
saying it could be a bid target, with
speculation persisting that AT&T is
interested. A statement from C&WW
said: Our gross margin outturn is
now expected to be somewhat below
current market expectations, blam-
ing a lower than projected sales
pipeline.
It said profits for the first ten weeks
of the financial year are in line with
expectations.
C&WW boss
quits after a
profit warning
BY STEVE DINNEEN
TELECOMS

ANALYSIS l Cable and Wireless Worldwide

p
Apr Jun Oct Jan2011 Apr
120
100
80
60
40
News
12 CITYA.M. 29 JUNE 2011
ANALYST VIEWS: HOW BAD IS THIS LATEST
WARNING FROM C&WW? Interviews by Steve Dinneen

MORTEN SINGLETON | INVESTEC

This has never been a story about near-term financials... which is just as
well really. While the market reaction should be understandably negative this
morning, we believe the potential remains for a doubling of value as a more radical
approach is taken to the business.

JONATHAN JACKSON | KILLIK & CO

Sales orders, which contribute to margin growth later in the year, have
been slower than expected. Combined with increased planned investment, this is
expected to lead to Ebitda for the current year being five to 10 per cent below
expectations. We reiterate our preference for Vodafone as a source of yield.

JUSTIN URQUHART STEWART | SEVEN INVESTMENT

This is a not-very-pretty picture getting even less pretty. This is a
business that is faltering in terms of strategy. Investors dont know where it is
going next and this worries them. I dont see evidence that the management
has a handle on costs.

HOW TELECOMS GIANT CABLE & WIRELESS WORLDWIDE FELL FROM GRACE
July The firm issues its first profit
warning, with market conditions
tough in light of government
spending cuts
7 September Speculation about a
bid from Eastern rival Singapore
Telecom sees it surge eight per cent
25 March A second profit warn-
ing sees the firms stock drop 14
per cent in a day
28 June Third profit warning
since demerger sends its shares
tumbling as much as 16 per cent
25 May The firm turns cashflow
positive for the first time since its
demerger from Cable & Wireless
Chief executive Jim Marsh has stood down with immediate effect
TOMTOM shares crashed almost 27
per cent yesterday after issuing a prof-
it warning. The satnav manufacturer
said a weak electronics market has
forced it to cut its forecasts for the
second time in two months.
Its full year revenue expectations
are now between 1.23bn and
1.28bn, down from its previous fore-
cast range of 1.43bn to 1.48bn.
Analysts say the increasing popu-
larity of smartphone apps with GPS
capabilities is strangling the satnav
market.
Tom Gidley-Kitchin from Charles
Stanley told City A.M.: I am certain
this is to do with smartphones and
the increasing functionality of apps.
TomTom offers this service too,
probably better than its rivals, but
why would people want to pay extra?
Halfords, a major TomTom retailer,
dropped three per cent yesterday.
TomTom crashes 27pc as
smartphones hog the road
TomTom yesterday issued its second profit warning in two months Picture: GETTY
News
CITYA.M. 29 JUNE 2011
BY STEVE DINNEEN
TECHNOLOGY

13
JOHN Pluthero yesterday took the
short walk across the Cable &
Wireless Worldwide office from
the chairmans office and into
the chief executives room.
To his fans, Pluthero is a
turnaround guy, someone
who can change the direc-
tion a business is heading.
Which is just as well, given
that C&WW seems to be
heading straight down.
To his detractors, he
is a reminder of the
most loathed man-
agement team in
the FTSE, too close-
ly linked with out-
going chief
executive Jim
Marsh to mark the
end of a disappoint-
ing era for the tele-
coms giant.
He joined the
Cable & Wireless
empire alongside
Marsh when the
firm bought
Energis back
in 2005. He went on to run C&Ws
UK operations, undertaking a far-
reaching and very successful
cost-cutting drive. When C&WW
demerged in 2010, Marsh took over
as chief executive and Pluthero took
the role of chairman.
Before joining C&W,
Pluthero was seen as the mas-
termind behind the
Freeserve business, building
it from the ground-up into
the most popular internet
provider in the country.
But taking the
reins at
C&WW dur-
ing its dark-
est hour its
shares trad-
ing for as
little as
43p, down
from a
high of
150p last
year will
be tough,
even for a
turnaround
man.
John Pluthero takes the
top job at troubled telco
BY STEVE DINNEEN
TECHNOLOGY

JOHN PLUTHERO
NEWS | IN BRIEF
Myspace to be sold this week
News Corp is expected to sell the trou-
bled social media site Myspace in the
next two days, according to a source
familiar with the situation. Two front-
runners have emerged in the auction
process: online ad company Specific
Media and private equity firm Golden
Gate Capital, the source said. The asking
price is expected to be more than $30m
but less than $100m, another source
revealed.
Daisy Group is meeting forecasts
Telecoms firm Daisy Group forecast
trading for the current financial year at
the upper end of current expectations
after posting a near-flat full-year loss.
The firm also said chief financial officer
Anthony Riley had stepped down to pur-
sue other interests. Steve Smith will
take over from Riley. The firms pre-tax
loss was 19.7m on revenue of 266.3m.
Evening Standard halves losses
The Evening Standard newspaper halved
its losses in the year up to September
2010 from 30.6m to 16.9m. It is also
thought the firm will half this loss again
for the current year, with new owner
Evgeny Lebedevs strategy of offering
the paper for free appearing to bear
fruit.
Google plans rival to Facebook
Google is taking another stab at fending
off Facebook and other social network-
ing sites with a new service called
Google Plus. Google designed the serv-
ice, unveiled yesterday, to tie together all
of its online properties, laying the foun-
dation for a full network with profile
pages and different levels of social con-
nections.
FRENCH supermarket giant
Carrefour is poised to attempt to take
control of Brazils top retailer, Grupo
Pao de Acucar, from arch-rival Casino
in a bold move to broaden its foot-
print in a top emerging market.
The talks on a merger between
Carrefour, which has been struggling
with a stagnant domestic market,
and Pao de Acucar, were initiated by
the Brazilian supermarket chains
chairman and would count on finan-
cial backing from government devel-
opment bank BNDES. But Frances
Casino is unlikely to part with its
prized Brazilian assets and branded
the move illegal and of an obvious
hostile nature in an attack on
Carrefour yesterday.
Given that Casino have co-control,
they should be able to block it,
Bernstein analyst Christopher Hogbin
said. A merger of Carrefours existing
Brazilian stores with Pao de Acucar
would create the countrys largest
retailer with estimated sales of more
than 30bn (26bn) and a network of
2,386 stores.
A deal would be subject to being
cleared by regulators.
BY JOHN DUNNE
RETAIL

News
14 CITYA.M. 29 JUNE 2011
CITY VIEWS: ARE YOU WORRIED ABOUT SHOPS FAILING? Interviews by Phoebe Torrance
I think that retail is expanding too
quickly in certain sectors so it is not sur-
prising that some shops fall into trouble.
It is different in the city than surround-
ing areas because the city is always
busy so shops don't suffer as much.
Im not worried, although there is potential for monopolies to form. Companies can exploit prices
and can gain from other companies misfortune. Overall it's too early to tell so I'm not that concerned
with the economy suffering too much at the moment.
JOSEPH TOMOUM | CMA SHIPPING
NEWS | IN BRIEF
Reckitts Becht joins plane firm
Bart Becht, the outgoing chief of Cillit
Bang maker Reckitt Benckiser, said yes-
terday that he will join the board of ICON
Aircraft, a US sports plane company in
which he became a key investor earlier in
the year. The company aims to make its
first plane models in 2012. Becht retires
as Reckitt chief executive in September
after more than 20 years at the firm.
His global business expertise is truly
world class, and his experience will prove
invaluable as we bring the ICON A5 to
market, said ICON founder and chief
executive Kirk Hawkin yesterday.
Supermarket giants signal woe
Two bulwarks of the retail sector, Asda
and Sainsbury, painted a bleak picture of
the UK retail economy yesterday.
Consumers are in recession, Asdas chief
financial officer told a conference. Do I
expect it to improve any time soon? No, I
do not, said Judith McKenna. Her views
were echoed by Sainsbury finance direc-
tor John Rogers. There is a huge, huge
amount of pressure on consumers, and
has been certainly for the last six months
and certainly will be for the next six
months, he said. It is very difficult to
see light at the end of the tunnel.
ANALYSIS l Carrefour

22Jun 23Jun 24Jun 27Jun 28Jun

27.50
27.00
26.50
27.44
28 Jun
Carrefour in Brazil retail
merger war with Casino
HMV
is closing 60
stores this year as
online music
takes toll
JANE NORMAN
Edinburgh
Woollen Mill acquires
brand but 33
stores to close
Im not particularly worried about it
as theyre not shops that I tend to go
to. It results in less competition for
other stores but also doesnt doesnt
help confidence in the economy so is a
bit unnerving.
HANNAH SMITH | DEUTSCHE BANK CHRIS JUDD | QBE INSURANCE
NIGHTMARE ON THE HIGH STREET
ADMINISTRATORS to struggling
retailer Jane Norman yesterday
sold off 33 stores in a controversial
pre-pack administration that has
refueled the debate into this route
for insolvent companies.
Edinburgh Woollen Mills,
which was lined up as a buyer by
PwC before the company was
handed over to its administra-
tors Zolfo Cooper, has agreed
to buy a third of Jane
Normans stores and all of its
stock.
The rise of pre-pack deals,
whereby assets are sold off
debt free ahead of a formal
administration, is likely to
cause unease with certain
groups of creditors who feel
they are being disadvan-
taged in the process.
Government minister Ed
Davey is said to be consider-
ing changing the law to bring in a
three day cooling off period, during
which time unsecured creditors
would be able to object to a pre-
pack arrangement.
However, sources say the
proposal has so far spurred a
hostile reaction from the
insolvency profession.
According to Michael
Rutstein, a restructur-
ing partner at law
firm Jones Day, a pre-
pack is the best
option for creditors:
In most cases, the
system is not
abused and the
best result for
creditors is
achieved.
Habitat and
Homeform are
also said to be
entering pre-
pack admin-
istration.
Jane Norman
pre-pack deal
sparks a row
BY KASMIRA JEFFORD
RETAIL

HIGH street chocolate seller

Thorntons and carpet retailer
Carpetright yesterday warned they
will both shut more branches in a
bid to trim costs and stay afloat.
Thorntons, which gave a profit
warning in May, said a minimum of
120 shops would shut, with the pos-
sibility of an extra 60 closures. The
group currently has 227 shops, all
run by franchises.
Chief executive Jonathan Hart
said: Our goal is to refocus the busi-
ness across all channels, and seek to
deliver industry competitive results
over the next three to five years.
Although we see the prospect of
weakness in high street footfall and
consumer sentiment continuing, I
am confident that this strategy is
right.
The group said it will also ramp
up its online sales, and try to move
away from being dependent on
Easter and Christmas offers.
Carpetright has already shut 27 of
its shops in the year to April, and
said more of its 559 outlets were in
the firing line for closure this year.
The firm, which has issued two
profit warnings in the past 12
months, said group revenues fell six
per cent to 486m in the year.
Underlying profit was down 40 per
cent to 17m.
Thorntons and
Carpetright to
shut branches
RETAIL

News
CITYA.M. 29 JUNE 2011 15
CARPETRIGHT
reduced its number
of outlets by 27 to
559 in the year
to April
THORNTONS
to close up to
180 stores in a
review of the
business
THE AMOUNT of spare cash in
Britons pockets tumbled by 2.7 per
cent in a year, after accounting for
inflation, official data revealed yes-
terday.
The Office for National Statistics
said household spending fell 0.6 per
cent in the first three months of
2011.
News of the biggest annual drop
in real disposable incomes since
1977 came as Mervyn King and
other senior Bank of England offi-
cials testified in front of the
Treasury Select Committee, reveal-
ing a range of views on how to deal
with high prices and sluggish wage
growth.
Most of us on the Banks commit-
tee have taken the view that to tight-
en policy now would risk
undesirable volatility in output,
King said.
Yet deputy governor Paul Tucker
made more hawkish noises than
expected, rebuffing rumours that
the Bank could be leaning towards
another programme of quantitative
easing, dubbed QE2.
This is not a committee thats
drifting towards thinking that more
stimulus may be needed, Tucker
said, despite the Banks last minutes
suggesting that several members
endorsed QE2 in the event that
deflationary pressures emerged.
Commenting on a call from the
Bank of International Settlements
(BIS) this week for central banks to
begin tightening policy, Tucker said:
I certainly dont think it should
just be cast aside.
Im one of those that is worried
about an upward drift in inflation
expectations, Tucker revealed,
implying that he could join col-
leagues Spencer Dale and Martin
Weale in voting for a 0.25 per cent
rise in Bank rate.
Concerns over the fiscal crisis in
Greece were raised by several senior
officials, including King.
There is sufficient concern in the
market about the possibility of [a
Greek] default for us to think about
contingency plans and the conse-
quences of this event, King said.
There are a whole range of risks
to demand and output in the UK,
added fellow rate-setter David Miles.
One of the big ones at the moment
is what is happening on the periph-
ery of the Eurozone.
AN AGEING population will impose
higher taxes and a rising deficit on
the UK unless radical changes are
made to the governments entitled
programmes, the think tank Reform
will argue today.
The pensioner population will
experience its fastest growth for the
whole century ahead during the cur-
rent parliamentary term, the group
has calculated. By 2016 the over-65
population will jump by 1.4m.
Under current policies, an extra
32bn per annum will be spent on
pensions by 2041, while the NHS will
see its budget rise by 40bn per
annum by the same year.
The number of workers for each
pensioner will plummet from 3.9 this
year to 2.5 in 2041, Reform has found.
As a result, the deficit will begin to
rise quickly in the next parliament,
despite steadily rising taxes, the
report states.
The resulting impact on the pub-
lic finances will swamp the current
plans for consolidation.
Reform will use the findings to
urge the government against adopt-
ing expensive changes to funding for
elderly care, when the Dilnot
Commission reports next week.
The dismal fiscal outlook means
that the government must hold firm
on reform to public sector pensions,
Reform added. If ministers act soon,
the costs to the taxpayer will be rela-
tively low and there will be few peo-
ple who lose out from any changes.
Higher taxes and rising deficit to come
from an ageing population time bomb
FEWER than one in 20 government
sector jobs are set to be cut under the
coalitions austerity plans, a
Westminster think tank claims today.
Private sector job creation will be
far larger than the reduction in gov-
ernment employees, the Centre for
Policy Studies expects.
Around 7.53m people work in gov-
ernment-provided services. The Office
for Budget Responsibility (OBR) is cur-
rently expecting 370,000 cuts from the
start of this year to spring 2016 equiv-
alent to 4.9 per cent of all government
jobs, and just 1.26 per cent of current
employment in the UK. The OBR fore-
casts an extra 1.3m jobs in the private
sector over the same period.
The private sector created 517,000
jobs in the year up to the first quarter
of 2011, the report states.
Losing a job can of course be a per-
sonal tragedy for those concerned, it
says. Yet the coalition plans will sim-
ply take official state employment
back to the levels seen in 2001-02.
Only 4.9pc of government
sector jobs set to be cut
UK ECONOMY

BRITAINS current account gap nar-

rowed to 9.4bn in the first three
months of the year, official data
revealed yesterday.
The deficit was down from an
upwardly revised 13bn in the final
quarter of 2010.
The news came as a surprise to
some economists who had expected
a sharper decline in the UKs balance
of payments deficit. The balance of
payments release is a disappoint-
ment, said Andrew Goodwin of the
Ernst and Young Item Club.
The UK recorded a 15bn deficit
with the European Union, down
from 16.9bn.
Current account
deficit narrows
UK ECONOMY

BRITISH recruiter Hays expects to

deliver modest domestic growth next
year, saying fragile consumer confi-
dence would hit the private sector
market with public sector hiring set
to remain flat.
Hays, which reported 18 per cent
private sector growth in the third
quarter, down from 27 per cent in its
first half, expects a slowing trend to
continue as fragile consumer confi-
dence kept small and medium-sized
businesses from re-hiring and made
candidates wary of changing jobs.
We will see a harder private sector
market, and I think that is going to
continue, finance director Paul
Venables said on Tuesday, adding that
the mainly bank-driven, London-based
recovery had moved into a grind-it-
out period.
In April, Hays reported a 16 per cent
rise in its third-quarter net fees after
strong performances in Asia Pacific
and Europe where it remains focused
on expansion. That helped offset a 37
per cent drop in British public sector
work in the period.
Hays, the largest provider of supply
teachers in Britain, said a removal of
uncertainty created by looming pub-
lic sector job cuts would give the econ-
omy a much-needed boost. In the
meantime, it would likely remain flat.
If there was a magic wand where
the public sector job cuts had actually
occurred, and all of the problems over
pensions et cetera were agreed, those
two things would give the biggest
stimulus to the economy at the
moment because they would fuel con-
fidence in the remainder of the work-
force, he said.
Shares in the FTSE 250 company,
whose London-listed rivals include
Michael Page and Robert Walters,
were up narrowly in afternoon trad-
ing yesterday.
Hays expects jobs slowdown
BY HARRY BANKS
RETAIL

Bank officials
concerned by
fall in incomes
BY JULIAN HARRIS
UK ECONOMY

BY JULIAN HARRIS
UK ECONOMY

News
16 CITYA.M. 29 JUNE 2011
Bank of England governor Mervyn King in Westminster yesterday Picture: PA
NEWS | IN BRIEF
German consumer sentiment rises
Morale on the German high street is set
to rebound in July, with the GfK con-
sumer confidence index edging up from
5.6 to 5.7, reversing four months of
declines. The turnaround is partly due to
a 2.5 per cent drop in fuel prices in June,
economists at ING said yesterday.
However, German consumer price index
inflation held up at 2.3 per cent in June,
according to an official estimate also
released yesterday.
Japanese retail sales recovering
Japanese retail sales rose for a second
straight month in May compared with
the previous month, signalling that con-
sumers are more willing to spend as sen-
timent gradually recovers from the
devastating earthquake in March. Sales
were up 2.4 per cent from April. The
annual decline was 1.3 per cent, half as
bad as expected.
US consumer morale in a slump
US consumer confidence fell in June to
the lowest point since November 2010, a
report showed yesterday. The Conference
Board, an industry group, said its index of
consumer attitudes fell to 58.5 from a
revised 61.7 the month before.
Shock upturn in US house prices
American house prices may be on the
verge of bottoming out, according to sur-
prising figures from the Standard and
Poors Case-Shiller index. In 10 US cities
prices were flat from April to March, on
a seasonally-adjusted basis, while some
unadjusted prices actually rose.
PROPOSED changes to higher educa-
tion were cautiously welcomed by
business groups yesterday.
Universities minister David Willetts
unveiled a white paper that could see
universities forced to reveal how stu-
dents on each course have fared sub-
sequently in the jobs market.
Students would also be able to
access information on courses such as
the number of hours for tuition.
As tuition fees rise, its only right
that students are in the driving seat,
said Katja Hall, the CBIs chief policy
director.
Willetts unveils
university plans
EDUCATION

BRITISH energy giant Centrica has

said its profits in the first half of
2011 will be lower than last year, and
hinted that it could raise household
bills to help offset this drop.
Centrica said UK residential ener-
gy will deliver just half the operating
profits that it did in 2010, blaming
higher commodity and operating
costs.
While the firm said North Sea gas
production would help pare the loss-
es, it also complained of higher taxes
on UK energy production denting
profits in its gas storage business,
based in the southern North Sea.
Centrica added in its stock market
announcement that retail margin
recovery would help it reach its full
year forecasts, suggesting that con-
sumer bills will be hiked.
The firm added that full year earn-
ings will be in line with expecta-
tions, showing year on year growth.
Energy provider Scottish &
Southern was the first to raise its
prices earlier this month, with a 19
per cent gas bill hike that provoked
the anger of consumer groups but
was seen as the starting gun on an
industry-wide price rise.
Centrica has previously said the
warm weather and energy efficiency
measures have dented household
energy consumption, meaning a
price hike is needed to offset the lost
revenues.
Centrica also reiterated its plan to
expand its profitable North
American business to lower its expo-
sure to the uncertainties of the UK
market.
It told investors and analysts yes-
terday that the US market is more
fragmented than the UK, with no
national player, meaning expansion
via a state-by-state plan is a more cer-
tain growth plan. The firm already
provides power for 6m customers in
the US and Canada.
Centrica shares gained 0.2 per
cent to close at 324.4p yesterday. The
firm will announce half-year results
on 28 July.
Centrica says
gas costs are
hitting profit
BY MARION DAKERS
ENERGY

OUTSOURCING group Serco expects

its revenues to hit 5bn by the end of
2012, it said in a pre-close statement
yesterday.
The firm, which operates immigra-
tion centres, health services and the
Docklands Light Railway, said it
expects good organic growth through
the year, giving an adjusted operating
profit margin of 6.3 per cent.
But the company added that the UK
market remains challenging, with
short-term headwind from the ongo-
ing austerity measures and public sec-
tor reforms.
Serco has acquired several interna-
tional firms in recent months, in an
attempt to shore up its position dur-
ing a time of uncertainty in the UK.
The firm reported revenues of
4.3bn in 2010 a rise of nine per cent
on the previous year.
Serco aims for revenues of 5bn
next year despite UK uncertainty
SUPPORT SERVICES

News
17 CITYA.M. 29 JUNE 2011
Customers go cold over energy price hikes
E
nergy companies measured a
drop in buzz earlier in June as it
was announced that Scottish
Power would be increasing its
prices in August, with other companies
expected to follow suit and announce
increases in the coming weeks.
Feeling the pinch from the signifi-
cant increase in wholesale prices for
gas and electricity, plus the apparent
rising cost of meeting the govern-
ments environmental and social pro-
grammes and of distributing
electricity via the National Grid, the
energy giant revealed that they
would be raising their gas bills by 19
per cent and electricity bills by 10 per
cent. Naturally, the public has not
taken kindly to this, with buzz levels
for Scottish Power shifting from -3.6
points on 7 June to a low of -38.2
points on 14 June. Media reports that
the other big five energy providers
are expected to follow suit and
increase prices also caused significant
buzz drops within the sector with
Scottish and Southern Energy faring
worst as scores fell from -3.6 to -17.6
points between 7 and 17 June.
Consumer perception of brand
value also took a hit due to the news,
as the big six all saw a decrease in
scores over the same period. Scottish
Power saw value scores fall from -13.5
on 7 June to -27.1 points a week later,
whilst British Gas, tracking lower
than its competitors, recorded a drop
of 13.4, from -21.9 points on 7 June to -
35.3 points on 21 June.
Its worth keeping any eye on the
other big five over the coming
weeks as to how their scores fare if
they follow Scottish Powers lead and
announce further price increases.
Stephan Shakespeare is the chief execu-
tive of YouGov
ANALYSIS l Scottish Power Value
0.0
-5.0
-10.0
-15.0
-20.0
-25.0
-30.0
-35.0
-40.0
1 June
BritishGas
npower
EDFEnergy
E.ON
Scottish&SouthernEnergy
ScottishPower
7June 13June 23June
ANALYSIS l Scottish Power Buzz
0.0
-5.0
-10.0
-15.0
-20.0
-25.0
-30.0
-35.0
-40.0
1 June
ScottishPower Buzz
7June 13June 23June
ANALYSIS l Centrica
p
22Jun 23Jun 24Jun 27Jun 28Jun
330
326
322
325.75
28 Jun
BRANDINDEX
STEPHAN SHAKESPEARE
News
18 CITYA.M. 29 JUNE 2011
EasyJet
Charles Gurassa has been appointed to the
board of the low-cost airline as a non-exec-
utive director, as well as deputy chairman
of the board and senior independent direc-
tor. Gurassa has previously worked at TUI,
British Airways and Thomas Cook and is
chairman of Genesis Housing Association.
Threadneedle
The asset manager has appointed two high
yield investment analysts. Gareth Simmons
and Jenny Wong will both join the firm in
early July as part of the high yield bond
team, headed by Barrie Whitman.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com
SPECIALISTS IN GLOBAL
PROFESSIONAL RECRUITMENT
in association with
Glendevon King Asset Management
Dr Percy Barnevik (pictured) and Dr Kurt
Moosmann have been appointed to the
newly created advisory board of the inde-
pendent fixed income boutique, following
the recent appointment of Richard Kendall
as chief executive. Barnevik has served as
chairman or a board member of global
businesses including General Motors,
AstraZeneca and Skanska, and Moosman is
the co-founder of Dara Capital and the for-
mer head of the wealth advisory depart-
ment of Quilvest Switzerland.
BEST OF THE BROKERS
ANALYSIS l Domino's Pizza
480
440
400
28Mar 15Apr 11 May 1 Jun 21 Jun
p
394.80
28 Jun
DOMINOS PIZZA
Numis rates the pizza maker a buy with a 600p target price as it says the market
expects the firm to report negative like-for-like sales for the second quarter after hot
weather in April and May. The broker instead believes new product launches and
growing lunch and late night sales should fuel 12 months of strengthening sales.
ANALYSIS l WS Atkins
820
780
740
700
28Mar 15Apr 11 May 1 Jun 21 Jun
p
730.50
28 Jun
WS ATKINS
Panmure Gordon rates the design and engineering firm a buy with an 860p target
price, arguing that it has a strong structural growth case thanks to growing global
investment in infrastructure. It says Atkins has the resources, reach and record to
capitalise on this, while its move into the US should give it more short-term catalysts.
ANALYSIS l Unilever
2,000
1,960
1,920
1,880
28Mar 15Apr 11 May 1 Jun 21 Jun
p
1,998.50
28 Jun
UNILEVER
JP Morgan Cazenove rates Unilever overweight with a 23.00 target price as it
believes its current valuation discount reflects pessimism about its first-half perform-
ance and doubts whether it can deliver an earnings turnaround. The broker believes
Unilever could see 11 per cent earnings per share growth by its 2012 full-year results.
F
INANCIAL stocks helped Britain's
top share index climb yesterday
as hopes of a resolution to
Greeces debt problems spurred
appetite for riskier assets.
Banks were in demand, led by part
state-owned Royal Bank of Scotland as
investors bet the Greek parliament
will this week vote through austerity
measures needed to secure more aid
from international lenders, despite
violent protests in Athens. RBS was
up 4.2 per cent following recent
underperformance.
A trading update from Standard
Chartered, up 2.7 per cent, also
improved appetite among investors
for banks, which have been under
pressure on concerns over their
potential exposure to the European
debt crisis.
The FTSE 100 index closed 44.54
points, or 0.8 per cent, higher at
5,766.88, adding to Mondays 0.4 per
cent advance.
Londons blue-chip index retreated
from a high of 5,795.10, however, as
uncertainty lingered over the health
of the worlds biggest economy as a
moderation in the decline of US
house prices was offset by gloomy
consumer confidence figures.
Miner Vedanta Resources gained
3.5 per cent, helped by late news on
Monday that its long-delayed deal to
buy a stake in Cairn India got a boost
as vendor Cairn Energy cut the price
tag and split the sale into two tranch-
es. Cairn also gained three per cent.
Tate & Lyle was the worst blue chip
faller, down 1.8 per cent after RBS cut
its rating to hold.
FTSE climbs as investors
pile into financial stocks
THELONDON
REPORT
6,100
5,900
5,700
11 May 1 Jun 21 Jun 15Apr 28Mar
ANALYSIS l FTSE 100
5,766.88
28 June
I
nsurance companies have endured
an exceptionally costly year so far
thanks to a bitter winter in Europe
and devastating earthquakes in
New Zealand and Japan. Insured losses
in the first quarter alone are at a record
level, testing the discipline of firms' risk
management. As the largest insurance
hub in Europe, the City's insurers play a
vital role in the UK's financial success.
Dont miss the City event of the year
get online now and book your table for
the City A.M. Awards on 21 September
2011 at Grange St Pauls Hotel, London
EC4. www.CityAMAwards.com
Beazley has had a strong year
since its takeover target Hardy
fought off its attentions last
December. Despite devastating
earthquakes in Chile and New
Zealand in 2010, the 1bn gross
premium per year insurer posted
about the best results in the non-
life sector, with profits up 60 per
cent to 150m on a combined
ratio of 88 per cent. Despite tak-
ing an $154m (95m) loss from
catastrophes so far this year,
Dublin-based Beazley says it will
still make an underwriting profit.
And in addition to paying a divi-
dend, it is keen to use its cash pile
to tackle more M&A opportuni-
ties in the Lloyds market.
BEAZLEY
UK online car insurer Admiral is
still motoring ahead, defying mar-
ket gloom to achieve a seventh
straight year of profit growth in
2010 on the back of a ten per
cent market share in the UK.
Profits rose 25 per cent while
turnover rose 47 per cent in the
year and it continues into 2011,
with a 50 per cent revenue
increase in the first quarter. Its
internet-savvy business model
and price comparison website
confused.com is keeping it ahead
of its competition while it invests
in overseas operations it believes
will grow the group long-term.
Analysts expect it to have 13 per
cent market share by 2016.
ADMIRAL
The life insurance consolidator
looks set to be one of the FTSE
100s most popular stocks this
year since unveiling plans to
return 500m to its investors via
share buybacks over 12 months.
Resolution, which has combined
RESOLUTION
assets from Friends Provident,
Axa and Bupa, is determined to
recoup the maximum cash from
its assets and aims to distribute
400m generated from the
closed life books each year. It
added the extra 500m to that
total after its decision to rule out
further acquisitions either in the
UK or abroad left it cash-rich.
Resolution believes it can release
at least 235m in capital syner-
gies from restructuring its life
assets next year maybe more
once it has resolved its Solvency
II commitments.
Catastrophe specialist Catlin has
taken a number of smart strate-
gic decisions over the past year.
The operator of Lloyds biggest
syndicate, it expanded into the
US with a bolt-on acquisition,
Blue Ridge Insurance, in January.
It then launched a Zurich opera-
tion that was A-rated by agency
AM Best and grew 107 per cent
in the first quarter. Though
$218m (133m) in catastrophe
losses pushed its full year 2010
profits down 33 per cent to
$406m, it beat forecasts thanks
to its strong underwriting profit.
Most recently, it has unveiled new
products designed to win more
UK business from brokers.
CATLIN
One of the Citys premier voices
on risk management and the
state of insurance rates, Hiscox
proved the strength of its under-
writing by posting a 211m prof-
it for 2010 with a combined ratio
of 89 per cent despite incurring
HISCOX
165m in catastrophe losses.
Strongly focused on profitable
business lines such as reinsur-
ance, it isnt afraid to cut the level
of premiums it writes if it believes
a market is uncompetitive, so has
cut its exposure to unprofitable or
loss-affected areas. Hiscox has
also ploughed resources very suc-
cessfully into growing its UK
retail brand, increasing its diversi-
fication, resilience and prof-
itability. It has featured among
analysts top picks for this year
and significant further growth is
expected of it.
I
NNOVATION was the key for this
years shortlist. Microsoft proved
that it is still an innovator with
Cloud Power; Barclays
Stockbrokers and American Express
brought novel techniques to bear in
their campaigns; Locog kindled new
enthusiam for 2012; and NatWest
showed that a new enthusiasm for
better service is the best ad of all.
Dont miss the City event of the year
get online now and book your table for
the City A.M. Awards on 21 September
2011 at Grange St Pauls Hotel, London
EC4. www.CityAMAwards.com
The credit card giant has been
shortlisted for Realise the
Potential. Starting in late 2009,
this was the largest marketing
campaign from Amex in more
than four years. Stressing the ben-
efits of the companys reward pro-
grammes to affluent consumers, it
represents a bold fightback
against the contraction of borrow-
ing demand following the financial
crisis. Innovative print shapes
caught the readers eye and chal-
lenged designers to new levels of
creativity in response. The results
have been rewarding: American
Express achieved a striking 33 per
cent increase year-on-year for
their first quarter profits in 2011.
AMERICAN
EXPRESS
The first integrated campaign
from Barclays Stockbrokers
launched its Contracts for
Difference and Financial Spread
Trading iPhone app. Seeking new
ways to engage with its audience
and to distinguish the product in a
crowded marketplace, the 360
campaign combined print ads,
online, mobile, direct mail and
more, even using a media partner-
ship to bring in user-generated
content through its when inspira-
tion strikes photo competition.
With an impressive download
record, the innovative campaigns
success helps to prove the poten-
tial of rich forms of customer
engagement.
BARCLAYS
STOCK-
BROKERS
With its largest ever marketing
campaign aimed at businesses,
Microsoft announced its determi-
nation to seize control of the next
wave of technological disruption:
the cloud. Cloud Power operat-
ed across many media channels,
MICROSOFT
reflecting the ability of cloud
computing to synchronise across
devices and formats. The once-
unquestioned tech giant has had
plenty of competitors nipping at
its heels recently thanks to trends
like open source software and
mobile computing. But Microsoft
now has a great story to tell
about its products, with an
acclaimed new version of
Windows and now an aggressive
push into cloud computing servic-
es. With this campaign, it
announced to the world that it
was ready for the future.
The London Organising
Committee of the Olympic and
Paralympic Games (Locog) faced
a difficult and very public chal-
lenge. Its biggest marketing
spend since London secured the
Olympic bid was released into the
full glare of media scrutiny, and
was an overwhelming success.
Controversies have arisen since
around ticket allocation, but only
because the campaign to pro-
mote the tickets did its job so
well. Locogs place on the shortlist
honours its inspiring imagery that
gave the nation a taste of what is
to come in 2012, while avoiding
the sort of early criticism endured
by the 2012 logo and mascots.
LOCOG
At a time when the public repu-
tation of banks and bankers has
fallen so low, it is cheering to find
a company working to repair its
own and by extension the sec-
tors image. NatWest was the
first bank to admit there was a
NATWEST
problem by running ads promis-
ing it was trying to serve its cus-
tomers better. Its helpful
banking campaign from M&C
Saatchi featured a 14-point cus-
tomer charter. The campaign
was able to publicly celebrate 20
of 25 targets being met in March
this year. NatWests place on the
shortlist recognises both the
strategic intelligence of their
campaign, its execution as a
story unfolding over time and its
continued wider benefits for the
rehabilitation of banking services
in the public eye.
OF THE YEAR
|
The Shortlist day eight
INSURANCE COMPANY
OF THE YEAR
|
BUSINESS MARKETING CAMPAIGN
News
19 CITYA.M. 29 JUNE 2011
Headline sponsor
Sponsored by
A legal battle could yet
sink the Greek bailout
A case against the EU
deal has been brought
by German plaintiffs,
writes Craig Drake
which covers property inheritance and
expropriation. By using the money of
German citizens, the plaintiffs claim that
this article has been transgressed.
Beissenhirtz does not see these as being
robust enough arguments to derail the
bailout. However, the main brunt of the
case being brought rests upon the Lisbon
Treaty. While the groups interpretation of
clauses 14 and 38 of the German constitu-
tion could be seen as left-field by some, arti-
cle 125 of the Lisbon Treaty explicitly rules
out any bailout of another EU country. But
it is likely that this articles application will
be a question of politics rather than of
adherence to the rule of law. With nobody
wanting to be the scapegoat for Germanys
economic demise, it is likely that the
European Court of Justice will simply
steamroll over this inconvenient clause
and allow the bailout to go ahead unhin-
dered.
As a German lawyer and a German citi-
zen, Beissenhirtz does not want to see the
bailouts go through. You want to help
Greece, but you will never help them in
this way. There is no way that you can aid
Greece through financing the bond mar-
kets. All that happens is the banks soak up
the money, the Greeks are not aided and
the taxpayer is left paying the bill.
It is likely that the legal challenge will go
the way of Stuart Wheelers 2008 challenge
to the UK governments ratification of the
Lisbon Treaty which failed. However,
should it succeed it will be back to the
drawing board for the response to the
Greek crisis and straight to the long gold
and euro-Swiss franc pair positions for
traders.
A
LTHOUGH the Greeks will vote
today on the adoption of austerity
measures, that vote could mean
nothing if a court case launched by
a group of five German citizens derails
Germanys financial contribution to the
bailout. The group, led by Peter Gauweiler,
a member of parliament for the Christian
Social Union (CSU) party, includes legal aca-
demics led by Nuremberg constitutional
law professor Karl Albrecht
Schachtschneider. They argue that the
bailout is unconstitutional both in German
and European law.
In the first instance, they argue that the
process by which the 22bn contribution to
the Greek bailout package was approved by
Germany was improper. Furthermore, they
claim the moves infringe upon their rights
as German citizens. On a supranational
level, they lean on article 125 of the Lisbon
Treaty the so called no bailout clause
which expressly forbids the EU or a mem-
ber state from undertaking the responsibil-
ity of covering the debts of another
member state.
According to Dr Volker Beissenhirtz, a
German attorney at law with Schultze and
Braun, there are already doubts as to the
admissibility of some of the claims being
brought, especially those that lean on the
German constitution basic law for the
federal republic of Germany.
The claim brought by Gauweiler is that
by fast-tracking the sanctioning of the
22bn German contribution to the bailout
in just 24 hours, article 38 (1) of the consti-
tution was breached which states of MPs
that they shall be representatives of the
whole people, not bound by orders or
instructions, and responsible only to their
conscience.
The second claim is based on article 14,
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RELIEF AHEAD
FOR THE EURO
AFTER GREECE
BORIS SCHLOSSBERG
DIRECTOR OF CURRENCY RESEARCH, GFT
I
N the currency market, all eyes are on Greece ahead
of the key austerity vote later today. The general
consensus is that George Papandreou will be able to
push through the legislation, aided by defectors from
the opposition New Democratic party. On Monday, ND
deputy Elsa Papadimitriou indicated that she may vote
for the austerity measures despite the reservations of
her party. However, Papandreous margin is too close for
comfort and markets remain nervous, which is being
reflected in the seesaw price action of the euro this
week.
Politics is always difficult to handicap, especially in
such an incendiary environment as Athens, where
angry protesters attack riot policemen with rocks and
tear gas fills the streets. Greek deputies could always
surprise with a no vote, sending financial markets into
a tailspin. Yet there is such an institutional desire to
avoid a credit crisis in the EU that I continue to believe
authorities will somehow manage to avoid a complete
financial meltdown, as every party reaches a compro-
mise that pushes the issue of Greeces solvency some-
where into the distant future.
Meanwhile, on the economic front the picture in core
Europe remains remarkably robust. Yesterday, the
German GFK consumer sentiment reading for July was
much better than forecast at 5.7 versus 5.3, indicating
that the booming German economy is having a positive
impact on the consumer psyche, despite the turmoil
created by the debt crisis in the periphery.
The positive news on consumer sentiment could trans-
late into better results in German retail sales, which
have been highly disappointing this year, contracting
for two out of the past three months. German retail
sales are projected to rise 0.7 per cent, versus 0.3 per
cent the month prior, but could surprise to the upside
given yesterdays strong readings. The GFK data also
hint at continued strength in German labour markets,
with unemployment expected to decline another -17K
from -8K last month. Both of the reports are due
tomorrow, after todays Greek austerity vote, and
assuming that passes the parliament, the euro-dollar
could see a relief rally to $1.4500, especially if the eco-
nomic data proves supportive.
The hearing at a court in Karlsruhe may leave the deal dead in the water Picture: GETTY
Wealth Management| Foreign Exchange
20
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21
FOREX ANALYST PICKS
FOREX STRATEGIST
ILYA SPIVAK
My pick: Short euro-dollar
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
FOREX STRATEGIST
DAVID RODRIGUEZ
My pick: Long dollar-Canadian dollar
Expertise: System trading
Average time frame of trades: 2 days to 10 weeks
This time last week I called for dollar rallies against the Canadian
dollar on the back of a sharp sentiment shift, and the dollar-
Canadian dollar rally seems well underway. I would like to move my
maximum risk to break even on the position, and Im targeting a
move significantly higher overall. The next major resistance is at par-
ity between the two currencies (Ca$1.00), and a break targets a
move towards Ca$1.0200.
I expect Greece to successfully pass its new budget plan and pave the way
for more EU/IMF aid, boosting risk appetite and the euro in the near term.
Indeed, Greek PM Papandreou survived last weeks confidence vote on the
premise of more austerity, so the decision is essentially made already. The
ensuing bounce in euro-dollar will yield a short entry point in the $1.45-$1.47
area to capitalise on a larger dollar advance in the second half of 2011, as
slowing global growth weighs on sentiment and drives safe-haven demand.
FOREX STRATEGIST
JOHN KICKLIGHTER
My pick: Short sterling-dollar and kiwi-dollar. Long loonie-yen.
Expertise: Fundamental analysis with risk management
Average time frame of trades: 1 day to 1 week
Significant volatility from last week didnt translate into a decisive
trend. That makes medium-term trade setups fewer and farther
between. Of my setups from last week the Swiss franc-yen short hit
its first target and the kiwi-dollar short from $0.8100 is awaiting
momentum. New to the mix, Im looking for cable to test its former
channel support as resistance at $1.6075 and an alternative, risk-
positive Canadian dollar-yen trade above 83.
S
TERLING fell to five
month lows against the
dollar yesterday, as
fresh concerns over the
European debt crisis saw
investors flock to traditional
safe-haven currencies, such as
the greenback and Swiss
franc. Spreadex offers
$1.5921-$1.5924 sterling-
dollar.
Is the par(i)ty coming to
an end for the Aussie dollar?
After a meteoric rise fuelled
largely by massive commodi-
ty exports to China and exag-
gerated by the healthy yield
offered on cash, the prospect
of slowing demand for metals
and talk of a rate cut by the
Reserve Bank of Australia is
now weighing. Also despite
the boom years, Canberra is
still sporting a $50bn deficit,
leaving the country exposed
in the longer term. IG Index
offers a spread on Australian
dollar-dollar of $1.0458-
$1.0459.
US Independence day has
been set as the deadline for a
deal between the US House
of Representatives and
Senate. A deal at this stage
would induce a strong dollar
relief rally, though ECB policy
normalisation is ahead of the
Feds, so any rally could be
short-lived. On dollar-Swiss
franc Alpari offers a spread
of SFr0.8333-SFr0.8334.
Philip Salter
THE TIPSTER
INVESTORS SEEK SAFETY
FROM EUROZONE CRISIS
Currensee and eToro let you learn
from the best, writes Philip Salter
T
HERES plenty of cheap
talk on social medias
bright future and its
potential to turn friends
and followers into profit.
However, thus far, returns have
failed to live up to the hype.
Except in forex trading, where
social networks like Currensee
and eToro allow you to not only
follow and interact with other
traders, but also copy them
mimicking the trades of the
most successful traders on the
internet.
Currensee works off the social
network of its traders. After due
diligence, the chosen few of
the 8,000 members are select-
ed to become Trade Leaders who
can be followed individually or
as part of a broader portfolio of
forex traders. So far, $12m
(7.5m) has been invested in its
Trade Leaders Investment
Program since its October 2010
launch increasing four-fold in
three months. Trade Leaders
earn 20 per cent commission
from the profits of their follow-
ers, while Currensee charges 2
per cent. Crucially copiers only
pay commission to traders on
the basis of profits across their
whole portfolio.
In contrast, eToro doesnt
charge fees. Instead, chief execu-
tive Yoni Assia says it relies upon
a different reward system for its
top traders, namely recognition.
He says it is underpinned by
basic human nature and peoples
desire for recognition, although
he is in the process of devising
incentive plans based on the
number of traders followers.
With in excess of 1.5m users in
over 130 countries, eToro traders
use its trading platform, while
with Currensee, chief executive
Dave Lemont explains you can
use any platform and they will
execute the trade on your behalf
in under one second.
For many, copycat trading
might be the first rung on the
ladder to becoming a proficient
trader, or investors might prefer
to put their money into traders
on the basis of trust and histori-
cal earnings. In a world where
investors are queuing up to
throw money at any investment
that isnt correlated to other
assets, being able to invest in for-
eign exchange is a revolutionary
opportunity. Lemont points out
the performance of Currensees
17 Trade Leaders is completely
uncorrelated to the stock mar-
ket. It also opens up foreign
exchange markets to retail
investors without the need for
expertise although this would
no doubt help.
Interests in both systems are
aligned between followers and
the followed. The leaders in both
networks benefit from either
financial or psychic profits. It is
hard to know which will prove to
be the most successful, but
either way the market in socially
networked traders looks set to
continue to grow. In fact,
because of the data and informa-
tion that can be garnered from
social networks, Assia believes
social trading will eventually
take over traditional trading.
Social trading will eventually take over
Follow trading
leaders using
social networks
Cheating is not always against the rules Picture: GETTY
LON GD ONCE FIX AM...........1502.50 1.50
SILVER LDN FIX AM ..................33.82 -0.02
MAPLE LEAF 1 OZ ....................52.50 0.00
LON PLATINUM AM................1691.00 17.00
LON PALLADIUM AM...............734.00 5.00
ALUMINIUM CASH .................2466.00 -1.00
COPPER CASH ......................9000.00 -44.50
LEAD CASH...........................2545.00 -9.00
NICKEL CASH......................21945.00 20.00
TIN CASH.............................25190.00 250.00
ZINC CASH ............................2228.50 5.50
BRENT SPOT INDEX................104.73 -1.54
SOYA .....................................1329.75 9.25
COCOA..................................2995.00 37.00
COFFEE...................................250.15 1.15
KRUG.....................................1557.90 5.10
WHEAT ....................................164.00 5.50
AIR LIQUIDE........................................95.98 0.94 100.65 79.85
ALLIANZ..............................................92.05 0.40 108.85 78.99
ALSTOM ..............................................41.75 0.08 45.32 30.78
ANHEUS-BUSCH INBEV ....................39.57 0.21 46.33 38.68
ARCELORMITTAL...............................23.10 0.56 28.55 20.26
AXA......................................................14.90 0.28 16.16 10.88
BANCO SANTANDER...........................7.63 0.08 10.23 7.00
BASF SE..............................................64.72 1.04 70.22 40.74
BAYER.................................................53.89 0.19 59.44 43.27
BBVA......................................................7.72 0.12 10.71 6.75
BMW ....................................................69.10 1.34 69.38 37.80
BNP PARIBAS.....................................51.13 0.97 59.93 43.13
CARREFOUR ......................................27.44 0.99 41.28 25.95
CREDIT AGRICOLE..............................9.98 0.34 12.92 8.13
CRH PLC .............................................14.29 0.11 18.20 11.51
DAIMLER.............................................50.39 1.15 59.09 37.03
DANONE..............................................52.54 0.58 52.88 41.00
DEUTSCHE BANK..............................39.77 0.85 51.61 35.93
DEUTSCHE BOERSE .........................51.20 0.67 62.48 46.33
DEUTSCHE TELEKOM.......................10.42 -0.05 11.38 9.50
E.ON.....................................................19.06 0.13 25.54 18.25
ENEL......................................................4.36 0.04 4.86 3.42
ENI .......................................................15.76 0.07 18.66 14.62
FRANCE TELECOM............................14.19 -0.02 17.45 14.01
GDF SUEZ ...........................................24.12 0.21 30.05 22.64
GENERALI ASS...................................13.97 0.12 17.05 13.31
IBERDROLA..........................................5.98 0.06 6.50 4.38
ING GROEP CVA...................................7.97 0.12 9.50 5.92
INTESA SANPAOLO.............................1.76 0.04 2.53 1.65
KON.PHILIPS ELECTR.......................16.80 -0.10 26.43 15.56
L'OREAL..............................................87.75 0.86 90.00 75.03
LVMH..................................................120.60 3.85 129.05 84.85
MUNICH RE.......................................102.05 0.65 126.00 99.62
NOKIA....................................................4.25 -0.01 8.49 4.03
REPSOL YPF.......................................22.31 0.20 24.90 16.30
RWE.....................................................37.14 0.08 56.49 36.71
SAINT-GOBAIN...................................41.99 0.54 47.64 27.81
SANOFI ................................................53.83 1.05 56.50 44.01
SAP......................................................41.07 -0.02 46.15 34.13
SCHNEIDER ELECTRIC ...................110.25 0.50 123.65 79.70
SIEMENS .............................................91.00 -1.79 99.39 70.02
SOCIETE GENERALE.........................38.81 1.14 52.70 32.50
TELECOM ITALIA..................................0.90 0.00 1.16 0.89
TELEFONICA ......................................16.22 0.01 19.69 14.95
TOTAL..................................................38.40 0.27 44.55 35.66
UNIBAIL-RODAMCO SE...................155.85 4.25 159.30 111.60
UNICREDIT............................................1.40 0.03 2.24 1.31
UNILEVER CVA...................................22.59 0.00 24.11 20.68
VINCI ....................................................42.19 0.38 45.48 33.01
VIVENDI ...............................................18.61 0.11 22.07 16.25
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5766.88 44.54 0.78
FTSE 250 INDEX. . . . . . . . 11606.38 57.32 0.50
FTSE UK ALL SHARE . . . . 3005.85 21.52 0.72
FTSE AIMALL SH . . . . . . . . 834.93 3.56 0.43
DOWJONES INDUS 30 . . 12188.69 145.13 1.21
S&P 500 . . . . . . . . . . . . . . . 1296.67 16.57 1.29
NASDAQ COMPOSITE . . . 2729.31 41.03 1.53
FTSEUROFIRST 300 . . . . . 1080.83 6.01 0.56
NIKKEI 225 AVERAGE. . . . 9648.98 70.67 0.74
DAX 30 PERFORMANCE. . 7170.43 62.53 0.88
CAC 40 . . . . . . . . . . . . . . . . 3851.89 55.34 1.46
SHANGHAI SE INDEX . . . . 2759.20 0.97 0.04
HANG SENG. . . . . . . . . . . 22061.78 20.01 0.09
S&P/ASX 20 INDEX . . . . . . 2710.10 14.10 0.52
ASX ALL ORDINARIES . . . 4523.20 9.40 0.21
BOVESPA SAO PAOLO. . 62303.37 1086.39 1.77
ISEQ OVERALL INDEX . . . 2912.05 25.23 0.87
STI . . . . . . . . . . . . . . . . . . . . 3050.79 2.51 0.08
IGBM. . . . . . . . . . . . . . . . . . 1007.59 6.49 0.65
SWISS MARKET INDEX. . . 6002.40 11.58 0.19
Price Chg %chg
3M........................................................93.02 0.77 97.95 76.85
ABBOTT LABS ...................................52.25 0.35 54.24 44.59
ALCOA ................................................15.65 0.37 18.47 9.81
ALTRIA GROUP..................................26.36 -0.41 28.13 19.53
AMAZON.COM..................................202.35 1.10 206.39 105.80
AMERICAN EXPRESS........................49.82 0.28 51.97 37.33
AMGEN INC.........................................58.65 0.77 61.53 50.34
APPLE...............................................335.26 3.22 364.90 236.78
AT&T....................................................31.02 0.26 31.94 23.88
BANK OF AMERICA...........................10.82 -0.03 15.72 10.40
BERKSHIRE HATAW B.......................76.42 0.79 87.65 73.23
BOEING CO.........................................72.09 0.47 80.65 59.48
BRISTOL MYERS SQUI ......................28.60 0.13 29.54 20.05
CATERPILLAR..................................103.84 3.04 116.55 58.06
CHEVRON.........................................100.35 1.45 109.94 66.83
CISCO SYSTEMS................................15.13 0.08 26.00 14.78
CITIGROUP.........................................40.15 0.16 51.50 36.20
COCA-COLA.......................................66.03 0.82 68.77 49.47
COLGATE PALMOLIVE......................85.82 0.41 89.36 73.12
CONOCOPHILLIPS.............................73.26 1.48 81.80 48.06
DU PONT(EI) DE NMR........................52.66 0.91 57.00 33.73
EMC CORP..........................................26.87 0.37 28.73 17.87
EXXON MOBIL....................................79.63 1.71 88.23 55.94
GENERAL ELECTRIC.........................18.44 0.16 21.65 13.75
GOOGLE A........................................493.65 10.85 642.96 433.63
HEWLETT PACKARD.........................35.09 0.11 49.39 33.95
HOME DEPOT.....................................36.06 0.86 39.38 26.62
IBM.....................................................170.01 2.39 173.54 120.61
INTEL CORP .......................................21.49 0.15 26.78 17.60
J.P.MORGAN CHASE.........................39.54 -0.34 48.36 35.16
JOHNSON & JOHNSON.....................65.91 0.66 67.37 56.86
KRAFT FOODS A................................34.53 0.03 35.44 24.30
MC DONALD'S CORP ........................84.35 2.03 84.41 65.31
MERCK AND CO. NEW......................34.91 0.38 37.68 31.06
MICROSOFT........................................25.80 0.60 29.46 22.73
OCCID. PETROLEUM.......................100.93 2.00 117.89 72.13
ORACLE CORP...................................32.34 0.76 36.50 21.24
PEPSICO.............................................69.62 0.57 71.89 60.32
PFIZER ................................................20.55 0.38 21.45 14.00
PHILIP MORRIS INTL .........................65.89 -0.03 71.75 45.54
PROCTER AND GAMBLE ..................62.72 -0.10 67.72 56.57
QUALCOMM INC ................................55.45 0.70 59.84 31.63
SCHLUMBERGER ..............................84.35 3.71 95.64 52.91
TRAVELERS CIES..............................57.55 0.33 64.17 48.17
UNITED TECHNOLOGIE ....................86.55 1.22 90.67 63.62
UNITEDHEALTH GROUP...................51.77 0.74 52.64 27.13
VERIZON COMMS ..............................36.57 0.17 38.95 25.80
WAL-MART STORES..........................52.53 0.24 57.90 47.77
WALT DISNEY CO ..............................37.92 -0.15 44.34 30.72
WELLS FARGO & CO.........................27.49 0.04 34.25 23.02
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.545 0.00
LIBOR Euro - overnight ..................0.833 0.00
LIBOR Euro - 12 months.................2.118 0.00
LIBOR USD - overnight...................0.126 0.00
LIBOR USD - 12 months.................0.735 0.00
HaIifax mortgage rate .....................3.500 0.00
Euro Base Rate ...............................1.250 0.00
Finance house base rate................1.000 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................4.020 0.03
European repo rate .........................0.911 0.08
Euro Euribor ....................................1.201 0.00
The vix index ...................................19.75 -0.96
The baItic dry index ........................1.442 0.01
Markit iBoxx...................................220.68 -0.97
Markit iTraxx....................................95.06 0.00
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.4357 0.0070
C/ 0.8973 0.0036
C/ 116.24 0.6380
/C 1.1146 0.0050
/$ 1.5999 0.0012
/ 129.54 0.2155
FTSE 100
5766.88
44.54
FTSE 250
11606.38
57.32
FTSE ALLSHARE
3005.85
21.52
DOW
12188.69
145.13
NASDAQ
2729.31
41.03
S&P 500
1296.67
16.57
Rexam . . . . . . . . . . . .374.4 2.3 400.0 290.4
RPC Group . . . . . . . .351.1 9.0 361.1 199.9
Smiths Group . . . . .1149.0 42.0 1429.0 1043.0
Brown (N.) Group . . .264.0 -2.0 311.2 221.0
Carpetright . . . . . . . . .667.5 -22.5 835.5 631.0
Debenhams . . . . . . . . .69.0 -1.0 77.4 53.0
Dignity . . . . . . . . . . . .771.0 -4.0 785.0 627.5
Dixons RetaiI . . . . . . .16.5 1.0 28.5 11.8
DuneImGroup . . . . . .399.0 -2.6 550.0 325.3
HaIfords Group . . . . .388.4 -11.7 527.0 348.2
Home RetaiI Group . .160.8 0.5 244.5 158.3
Inchcape . . . . . . . . . .402.8 4.7 414.0 237.1
JD Sports Fashion . .920.0 -50.0 1005.0 723.5
Kesa EIectricaIs . . . .134.3 1.6 174.0 109.8
Kingfisher . . . . . . . . .269.6 -0.3 287.1 198.5
Marks & Spencer G . .368.9 0.9 427.5 327.2
Mothercare . . . . . . . .388.5 -2.1 627.5 381.5
Next . . . . . . . . . . . . .2276.0 4.0 2326.0 1868.0
Sports Direct Int . . . .230.0 -2.9 237.8 101.1
WH Smith . . . . . . . . . .487.8 14.0 523.0 398.2
Smith & Nephew . . . .636.0 -4.0 742.0 537.5
Synergy HeaIth . . . . .905.0 16.0 948.0 640.0
Barratt DeveIopme . .111.8 1.3 119.0 70.1
YuIe Catto & Co . . . . .218.0 -3.3 240.5 112.7
BaIfour Beatty . . . . . .300.7 -0.4 357.3 229.8
KeIIer Group . . . . . . .432.0 -6.9 698.5 428.0
Kier Group . . . . . . . .1326.0 3.0 1418.0 886.5
Drax Group . . . . . . . .490.6 0.8 492.8 353.6
Scottish & Southe . .1386.0 -5.0 1410.0 1108.0
Domino Printing S . .660.0 9.0 705.0 440.0
HaIma . . . . . . . . . . . . .401.7 3.6 404.1 265.4
Laird . . . . . . . . . . . . . .200.0 -0.1 202.0 98.8
Morgan CrucibIe C . .287.5 2.1 333.0 179.5
Renishaw . . . . . . . . .1750.0 74.0 1819.0 709.0
Spectris . . . . . . . . . .1538.0 19.0 1581.0 740.5
Aberforth SmaIIer . . .672.5 3.0 714.0 506.0
AIIiance Trust . . . . . .376.4 2.6 385.0 293.5
Bankers Inv Trust . . .408.0 -3.6 428.0 337.0
BH GIobaI Ltd. GB .1102.0 -5.0 1174.0 1058.0
BH GIobaI Ltd. US . . . .10.9 -0.1 11.6 10.4
BH Macro Ltd. EUR . . .17.1 -0.1 17.2 15.8
BH Macro Ltd. GBP 1769.0 -2.0 1775.0 1630.0
BH Macro Ltd. USD . . .17.0 -0.1 17.1 15.8
BIackRock WorId M .731.0 3.0 815.5 533.0
BIueCrest AIIBIue . . .173.8 -0.2 176.2 163.8
British Assets Tr . . . .132.4 -0.1 140.5 105.0
British Empire Se . . .513.0 1.0 533.0 404.1
CaIedonia Investm .1684.0 -3.0 1928.0 1539.0
City of London In . . .295.3 0.8 303.2 235.0
Dexion AbsoIute L . .145.5 0.6 151.0 131.2
Edinburgh Dragon . .239.1 0.1 262.1 205.3
Edinburgh Inv Tru . . .466.9 -0.6 492.2 372.2
EIectra Private E . . .1716.0 1.0 1755.0 1183.0
F&C Inv Trust . . . . . .312.4 1.9 317.5 251.4
FideIity China Sp . . . . .99.2 1.7 128.7 93.0
FideIity European . .1217.0 1.0 1287.0 916.0
FideIity SpeciaI . . . . .557.0 -2.5 595.0 503.0
HeraId Inv Trust . . . . .518.0 -4.5 541.0 352.5
HICL Infrastructu . . . .114.7 0.0 121.3 112.0
Impax Environment .114.6 -0.9 130.5 106.5
JPMorgan American .856.0 0.0 909.0 673.0
JPMorgan Asian In . .226.2 -2.1 250.8 187.1
JPMorgan Emerging .579.0 2.0 639.0 479.5
JPMorgan European .886.0 1.0 983.5 618.0
JPMorgan Indian I . . .415.0 3.0 502.0 394.1
JPMorgan Russian .654.5 3.5 755.0 502.0
Law Debenture Cor . .365.0 0.0 372.4 273.3
MercantiIe Inv Tr . . .1044.0 -10.0 1137.0 840.0
Merchants Trust . . . .414.5 5.1 431.8 320.0
Monks Inv Trust . . . .341.9 -0.1 367.9 275.5
Murray Income Tru . .649.0 5.5 672.0 518.0
Murray Internatio . . .958.5 -0.5 966.0 805.5
PerpetuaI Income . . .266.1 1.0 276.0 212.0
PoIar Cap TechnoI . .346.0 0.0 391.2 275.6
RIT CapitaI Partn . . .1311.0 4.0 1328.0 1107.0
Scottish Inv Trus . . . .497.0 3.5 517.0 401.5
Scottish Mortgage . .732.0 9.0 764.0 533.0
SVG CapitaI . . . . . . . .252.0 -1.4 279.8 143.6
TempIe Bar Inv Tr . . .911.0 -2.0 947.5 717.0
TempIeton Emergin .630.5 3.5 689.5 515.0
TR Property Inv T . . .189.7 1.7 201.0 132.3
TR Property Inv T . . . .90.0 2.0 91.0 59.5
Witan Inv Trust . . . . .507.0 4.5 528.0 409.9
3i Group . . . . . . . . . . .270.9 2.9 340.0 254.1
3i Infrastructure . . . .120.4 1.4 125.2 108.9
Aberdeen Asset Ma .215.9 4.6 240.0 123.0
Ashmore Group . . . .384.0 8.1 393.9 236.5
BerkeIey TechnoIo . . . .4.3 0.0 9.0 2.2
Brewin DoIphin Ho . .143.5 -1.5 185.4 114.0
CameIIia . . . . . . . . .10192.5 24.510950.0 7600.0
CharIes TayIor Co . . .154.5 8.5 234.0 122.0
City of London Gr . . . .80.5 0.0 93.6 70.7
City of London In . . .424.0 1.0 461.5 273.5
CIose Brothers Gr . . .739.0 7.5 888.5 664.0
CoIIins Stewart H . . . .72.5 1.5 90.8 70.8
EvoIution Group . . . . .64.3 -0.8 92.0 64.0
F&C Asset Managem .73.7 0.0 92.9 47.5
Hargreaves Lansdo .596.5 13.5 646.5 317.4
HeIphire Group . . . . . . .3.9 0.4 44.0 3.2
Henderson Group . . .145.9 0.6 173.1 118.1
Highway CapitaI . . . . .18.5 0.0 21.0 6.0
ICAP . . . . . . . . . . . . . .436.5 5.8 570.5 380.2
IG Group HoIdings . .426.6 4.9 553.0 416.2
Intermediate Capi . . .312.3 7.8 360.3 240.4
InternationaI Per . . . .336.7 16.3 386.6 183.3
InternationaI Pub . . . .117.5 0.2 118.3 108.6
Investec . . . . . . . . . . .486.2 11.8 538.0 429.2
IP Group . . . . . . . . . . . .47.5 -0.1 53.8 27.9
Jupiter Fund Mana . .238.7 6.0 337.3 180.3
Liontrust Asset M . . . .78.5 -0.5 95.3 70.0
LMS CapitaI . . . . . . . . .61.4 0.0 64.8 40.0
London Finance & . . .21.0 0.0 23.5 16.5
London Stock Exch .927.0 -10.0 990.0 544.0
Lonrho . . . . . . . . . . . . .18.0 0.5 19.8 10.0
Man Group . . . . . . . . .232.8 5.2 311.0 206.4
Paragon Group Of . .189.3 4.1 206.1 114.4
Provident Financi . . .933.5 7.0 1033.0 728.5
Rathbone Brothers .1070.0 -7.0 1257.0 762.5
Record . . . . . . . . . . . . .32.8 -0.8 52.8 20.3
RSM Tenon Group . . .24.5 -0.5 66.3 21.3
Schroders . . . . . . . .1470.0 41.0 1922.0 1154.0
Schroders (Non-Vo .1233.0 38.0 1554.0 950.5
TuIIett Prebon . . . . . .350.0 9.4 428.6 307.5
WaIker Crips Grou . . .51.0 1.0 51.0 46.5
BT Group . . . . . . . . . .194.6 -3.3 201.9 126.3
CabIe & WireIess . . . .38.1 -1.4 61.4 37.5
CabIe & WireIess . . . .45.0 -7.3 90.3 43.3
COLT Group SA . . . .143.0 -0.4 156.2 109.0
TaIkTaIk TeIecom . . .142.5 -2.0 168.3 114.3
TeIecomPIus . . . . . . .645.0 -10.0 700.0 327.0
Booker Group . . . . . . .68.1 0.8 70.3 39.5
Greggs . . . . . . . . . . . .520.0 4.0 542.0 418.7
Morrison (Wm) Sup .292.0 0.1 308.3 262.7
Ocado Group . . . . . . .180.0 10.0 285.0 123.5
Sainsbury (J) . . . . . . .325.6 -1.5 395.0 317.2
Tesco . . . . . . . . . . . . .395.4 -1.1 440.7 377.5
Associated Britis . .1080.0 -5.0 1182.0 940.0
Cranswick . . . . . . . . .748.5 -4.5 907.5 735.0
Dairy Crest Group . . .366.9 0.1 424.9 339.7
Devro . . . . . . . . . . . . .266.6 -11.4 296.9 195.0
Premier Foods . . . . . . .25.6 0.1 35.1 16.0
Tate & LyIe . . . . . . . . .618.5 -11.5 656.0 409.1
UniIever . . . . . . . . . .1988.0 2.0 2003.0 1688.0
Mondi . . . . . . . . . . . . .600.0 10.0 630.0 367.6
Centrica . . . . . . . . . . .324.4 0.7 346.1 292.8
InternationaI Pow . . .310.9 2.8 448.6 295.9
NationaI Grid . . . . . . .595.0 -0.5 632.5 485.0
Northumbrian Wate .416.7 3.2 417.0 295.5
Pennon Group . . . . . .680.0 14.0 683.5 545.5
Severn Trent . . . . . .1448.0 33.0 1517.0 1216.0
United UtiIities . . . . .592.5 5.0 632.0 520.0
Cookson Group . . . . .616.0 -6.5 724.5 367.4
DS Smith . . . . . . . . . .244.0 -2.5 247.9 116.0
GIencore Internat . . .486.4 10.8 531.1 466.7
BAE Systems . . . . . .308.9 3.5 369.9 294.7
Chemring Group . . . .613.5 -2.5 736.5 519.6
Cobham . . . . . . . . . . .208.0 1.2 247.6 192.3
Meggitt . . . . . . . . . . . .368.4 6.8 380.9 261.7
QinetiQ Group . . . . . .116.1 -0.2 136.3 96.7
RoIIs-Royce Group . .613.0 6.5 665.0 535.0
Senior . . . . . . . . . . . . .162.5 -0.6 167.1 111.2
UItra EIectronics . . .1613.0 3.0 1895.0 1522.0
GKN . . . . . . . . . . . . . .220.2 4.4 237.1 109.3
BarcIays . . . . . . . . . . .242.0 4.4 344.0 237.3
HSBC HoIdings . . . . .608.2 2.0 730.9 596.2
LIoyds Banking Gr . . .44.2 0.8 77.6 43.4
RoyaI Bank of Sco . . .36.6 1.5 52.1 35.1
Standard Chartere .1581.0 41.0 1950.0 1519.0
AG Barr . . . . . . . . . .1313.0 -1.0 1395.0 1035.0
Britvic . . . . . . . . . . . . .390.9 0.5 518.0 364.5
Diageo . . . . . . . . . . .1259.0 -11.0 1301.0 1033.0
SABMiIIer . . . . . . . . .2176.5 18.0 2306.0 1827.0
AZ EIectronic Mat . . .314.1 4.2 338.1 248.5
Croda Internation . .1847.0 7.0 1962.0 971.0
EIementis . . . . . . . . . .167.0 2.0 169.8 60.0
Johnson Matthey . .1899.0 18.0 2119.0 1460.0
Victrex . . . . . . . . . . .1458.0 18.0 1525.0 1049.0
Price Chg High Low
BeIIway . . . . . . . . . . . .723.0 21.0 753.5 511.0
BerkeIey Group Ho .1294.0 -5.0 1308.0 763.5
Bovis Homes Group .422.6 1.9 464.7 326.6
Persimmon . . . . . . . .478.0 8.1 502.5 336.5
Reckitt Benckiser . .3429.0 71.0 3648.0 3015.0
Redrow . . . . . . . . . . . .122.0 1.8 139.0 97.5
TayIor Wimpey . . . . . . .36.9 0.2 43.3 22.3
Bodycote . . . . . . . . . .341.5 6.5 397.7 185.0
Charter Internati . . . .615.0 18.5 853.5 538.5
Fenner . . . . . . . . . . . .378.0 0.0 393.8 192.2
IMI . . . . . . . . . . . . . . . .995.5 12.0 1112.0 657.5
MeIrose . . . . . . . . . . .344.7 6.7 355.5 203.4
Northgate . . . . . . . . . .305.0 7.8 346.7 152.3
Rotork . . . . . . . . . . .1594.0 4.0 1895.0 1254.0
Spirax-Sarco Engi . .1914.0 11.0 2063.0 1346.0
Weir Group . . . . . . .2061.0 10.0 2089.0 1024.0
Ferrexpo . . . . . . . . . . .457.6 17.7 499.0 235.0
TaIvivaara Mining . . .409.8 3.2 622.0 352.3
BBAAviation . . . . . . .210.1 1.7 240.8 175.0
Stobart Group Ltd . . .143.1 -0.1 163.6 124.1
AdmiraI Group . . . . .1645.0 11.0 1754.0 1390.0
Haynes PubIishing . .253.5 0.0 262.5 202.5
Huntsworth . . . . . . . . .73.0 0.0 86.0 65.0
Informa . . . . . . . . . . . .412.0 -0.3 461.1 342.1
ITE Group . . . . . . . . . .202.0 1.2 258.2 136.2
ITV . . . . . . . . . . . . . . . . .67.5 0.0 93.5 48.3
Johnston Press . . . . . . .5.4 -0.1 20.0 4.4
MecomGroup . . . . . .215.0 -7.0 310.0 162.0
Moneysupermarket. . .99.5 -3.4 109.3 64.6
Pearson . . . . . . . . . .1141.0 10.0 1175.0 864.0
Reed EIsevier . . . . . .546.0 8.0 590.5 490.2
Rightmove . . . . . . . .1150.0 7.0 1150.0 596.5
STV Group . . . . . . . . .124.0 -2.4 168.0 66.0
Tarsus Group . . . . . .149.5 3.5 165.0 112.5
Trinity Mirror . . . . . . . .41.3 0.5 124.3 40.8
United Business M . .522.5 4.0 725.0 483.8
UTV Media . . . . . . . . .119.3 -6.3 151.0 106.0
WiImington Group . . .118.8 -0.3 183.0 114.0
WPP . . . . . . . . . . . . . .747.5 5.5 846.5 614.5
YeII Group . . . . . . . . . . .5.1 -0.1 30.2 5.1
African Barrick G . . .408.5 3.1 638.0 393.5
AngIo American . . .2957.0 74.5 3437.0 2254.0
AngIo Pacific Gro . . .302.2 1.2 369.3 249.0
Antofagasta . . . . . . .1303.0 20.0 1634.0 761.0
Aquarius PIatinum . .302.9 12.8 419.0 227.1
BHP BiIIiton . . . . . . .2342.5 29.5 2631.5 1684.5
AmIin . . . . . . . . . . . . .403.0 -1.5 433.0 375.3
BeazIey . . . . . . . . . . . .120.7 -0.3 139.2 109.1
CatIin Group Ltd. . . .397.3 -1.1 421.4 325.0
Hiscox Ltd. . . . . . . . . .405.2 -6.5 424.7 336.1
Jardine LIoyd Tho . . .654.5 12.0 709.0 521.5
Lancashire HoIdin . . .628.0 2.5 660.0 491.1
RSA Insurance Gro . .132.6 2.1 143.5 117.9
Aviva . . . . . . . . . . . . . .422.9 3.0 477.9 305.8
LegaI & GeneraI G . . .111.0 1.4 123.8 75.6
OId MutuaI . . . . . . . . .127.6 2.4 145.2 102.0
Phoenix Group HoI . .590.0 -10.0 758.0 584.4
PrudentiaI . . . . . . . . .705.5 18.0 777.0 489.2
ResoIution Ltd. . . . . .292.3 4.3 316.1 211.3
St James's PIace . . . .321.0 1.9 360.4 204.2
Standard Life . . . . . . .201.8 0.3 244.7 173.0
4Imprint Group . . . . .270.0 1.5 295.0 195.0
Aegis Group . . . . . . .157.7 1.6 158.1 103.6
BIoomsbury PubIis . .127.0 0.8 138.0 108.5
British Sky Broad . . .849.0 5.5 849.0 693.5
Centaur Media . . . . . . .46.8 -6.5 73.0 45.8
Chime Communicati .282.5 -1.0 298.5 158.0
Creston . . . . . . . . . . . .117.5 2.0 121.0 78.5
DaiIy MaiI and Ge . . .444.2 1.7 594.5 433.0
Euromoney Institu . .636.0 -4.0 736.0 575.5
Future . . . . . . . . . . . . . .17.9 -0.4 30.0 15.8
Centamin Egypt Lt . .125.0 1.0 197.1 114.5
Eurasian NaturaI . . .732.0 15.5 1125.0 695.5
FresniIIo . . . . . . . . . .1398.0 23.0 1682.0 950.0
GemDiamonds Ltd. .229.0 5.1 306.0 186.3
HochschiId Mining . .441.8 14.0 680.0 289.4
Kazakhmys . . . . . . .1300.0 36.0 1671.0 965.0
Kenmare Resources . .57.6 0.0 58.1 11.5
Lonmin . . . . . . . . . . .1415.0 20.0 1983.0 1355.0
New WorId Resourc .863.5 2.0 1060.0 856.5
PetropavIovsk . . . . . .705.0 -1.0 1259.0 678.0
RandgoId Resource 5055.0 55.0 6655.0 4425.0
Rio Tinto . . . . . . . . .4337.5 69.5 4712.0 2880.5
Vedanta Resources 1972.0 67.0 2583.0 1832.0
Xstrata . . . . . . . . . . .1284.0 22.5 1550.0 845.8
Inmarsat . . . . . . . . . . .543.0 0.5 756.5 541.5
Vodafone Group . . . .162.1 -1.8 181.9 136.5
Genesis Emerging . .511.0 2.5 568.0 439.1
Afren . . . . . . . . . . . . . .152.7 6.2 171.2 79.2
BG Group . . . . . . . . .1304.5 1.0 1564.5 1002.0
BP . . . . . . . . . . . . . . . .443.5 3.5 509.0 302.9
Cairn Energy . . . . . . .395.0 11.4 493.2 366.0
EnQuest . . . . . . . . . . .121.4 1.9 158.5 96.0
Essar Energy . . . . . .397.4 7.3 589.5 385.7
ExiIIon Energy . . . . . .400.2 6.1 469.7 166.5
Heritage OiI . . . . . . . .216.9 4.4 486.0 210.0
JKX OiI & Gas . . . . . .261.0 -1.0 335.1 228.0
Premier OiI . . . . . . . . .428.6 -1.6 535.0 304.5
RoyaI Dutch SheII . .2144.0 18.5 2326.5 1624.0
RoyaI Dutch SheII . .2143.0 16.5 2336.0 1554.0
SaIamander Energy .266.6 6.0 317.6 210.0
Soco Internationa . . .348.7 0.7 484.2 292.0
TuIIow OiI . . . . . . . . .1220.0 2.0 1493.0 991.5
Amec . . . . . . . . . . . .1048.0 -1.0 1251.0 805.5
Hunting . . . . . . . . . . .741.0 18.5 817.0 439.4
John Wood Group . .619.0 12.0 706.0 308.4
LampreII . . . . . . . . . . .353.6 4.4 364.4 186.3
Petrofac Ltd. . . . . . .1509.0 9.0 1685.0 1141.0
Burberry Group . . . .1378.0 18.0 1392.0 739.5
PZ Cussons . . . . . . . .354.5 -4.2 409.0 320.5
Supergroup . . . . . . . .844.5 -0.5 1820.0 720.0
AstraZeneca . . . . . .3033.5 7.5 3385.0 2801.5
BTG . . . . . . . . . . . . . .275.4 0.9 282.5 191.0
Genus . . . . . . . . . . . .1013.0 -2.0 1046.0 704.5
GIaxoSmithKIine . . .1302.5 15.0 1348.5 1095.0
Hikma Pharmaceuti .767.0 1.0 900.0 687.5
Shire PIc . . . . . . . . . .1910.0 20.0 1961.0 1341.0
CapitaI & Countie . . .189.0 0.7 190.6 105.3
Daejan HoIdings . . .2701.0 -69.0 2919.0 2251.0
F&C CommerciaI Pr .105.1 -1.2 108.0 88.0
Grainger . . . . . . . . . . .125.0 2.0 128.2 86.3
London & Stamford .130.5 1.6 140.0 110.3
SaviIIs . . . . . . . . . . . . .390.0 -4.0 427.1 273.1
St. Modwen Proper . .180.0 -5.0 192.0 135.4
UK CommerciaI Pro . .81.4 -0.4 85.5 74.3
Unite Group . . . . . . . .205.5 -4.5 229.8 170.5
Big YeIIow Group . . .300.3 -1.2 353.3 287.1
British Land Co . . . . .589.0 13.5 604.5 429.0
CapitaI Shopping . . .391.9 7.9 424.8 301.3
Derwent London . . .1792.0 12.0 1871.0 1208.0
Great PortIand Es . . .429.1 6.4 442.2 281.0
Hammerson . . . . . . . .471.4 8.0 486.3 336.3
Hansteen HoIdings . . .86.5 -0.3 89.3 59.4
Land Securities G . . .833.5 6.5 854.0 545.0
SEGRO . . . . . . . . . . . .309.1 4.9 331.3 250.2
Shaftesbury . . . . . . . .517.5 6.0 539.0 349.3
Autonomy Corporat 1623.0 -7.0 1915.0 1271.0
Aveva Group . . . . . .1681.0 24.0 1743.0 1127.0
Computacenter . . . . .470.0 12.6 489.7 260.0
Fidessa Group . . . . .1953.0 52.0 1971.0 1300.0
Invensys . . . . . . . . . . .307.4 -3.3 364.3 230.2
Kofax . . . . . . . . . . . . .445.4 -5.7 535.0 231.0
Logica . . . . . . . . . . . .129.0 -0.7 147.2 101.7
Micro Focus Inter . . .341.9 8.8 452.4 276.0
Misys . . . . . . . . . . . . .417.0 1.2 419.5 232.8
Sage Group . . . . . . . .282.7 1.3 302.0 222.7
SDL . . . . . . . . . . . . . . .696.5 -3.5 711.5 450.0
TeIecity Group . . . . . .551.5 2.0 556.0 377.0
Aggreko . . . . . . . . . .1853.0 25.0 1935.0 1346.0
Ashtead Group . . . . .160.0 2.1 207.9 77.0
Atkins (WS) . . . . . . . .730.5 -11.5 820.0 650.0
Babcock Internati . . .690.0 5.0 704.5 492.8
Berendsen . . . . . . . . .499.0 2.9 519.5 360.2
BunzI . . . . . . . . . . . . .760.5 -1.5 783.0 658.0
Capita Group . . . . . . .711.0 -1.5 794.5 635.5
CariIIion . . . . . . . . . . .367.2 -3.1 403.2 291.2
De La Rue . . . . . . . . .743.5 -9.0 954.5 549.5
EIectrocomponents .263.8 2.9 294.9 205.7
Experian . . . . . . . . . . .764.0 12.0 819.0 578.0
FiItrona PLC . . . . . . . .360.6 -1.4 385.5 209.2
G4S . . . . . . . . . . . . . . .272.8 -1.3 291.0 237.7
Hays . . . . . . . . . . . . . . .97.9 -0.4 133.6 88.4
Homeserve . . . . . . . .509.5 -3.5 532.0 398.6
Howden Joinery Gr . .106.0 2.1 127.5 56.8
Intertek Group . . . . .1980.0 30.0 2148.0 1437.0
MichaeI Page Inte . . .524.5 11.0 567.0 349.4
Mitie Group . . . . . . . .229.5 0.6 242.5 188.7
Premier FarneII . . . . .235.2 4.8 308.8 210.2
Regus . . . . . . . . . . . . .107.4 3.6 119.0 66.1
RentokiI InitiaI . . . . . . .91.2 -0.4 114.1 84.3
RPS Group . . . . . . . . .240.5 -2.0 251.4 169.8
Serco Group . . . . . . .550.5 0.0 633.0 529.5
Shanks Group . . . . . .120.6 -0.5 130.9 96.5
SIG . . . . . . . . . . . . . . .133.0 0.0 153.5 90.7
SThree . . . . . . . . . . . .372.7 4.0 447.6 231.1
Travis Perkins . . . . . .965.0 1.0 1127.0 709.0
WoIseIey . . . . . . . . .1955.0 25.0 2261.0 1223.0
ARM HoIdings . . . . . .589.5 8.0 651.0 270.5
CSR . . . . . . . . . . . . . .302.0 -4.5 447.0 280.9
Imagination Techn . .375.0 15.0 502.0 273.1
Pace . . . . . . . . . . . . . .106.4 0.2 231.8 93.0
Spirent Communica .147.6 -0.4 160.3 108.2
British American . .2682.5 2.0 2745.5 2091.0
ImperiaI Tobacco . .2030.0 -15.0 2231.0 1784.0
Avis Europe . . . . . . . .310.4 0.0 311.1 184.0
Betfair Group . . . . . . .771.5 45.0 1550.0 721.5
Bwin.party Digita . . .133.0 4.0 309.5 127.0
CarnivaI . . . . . . . . . .2405.0 22.0 3153.0 2037.0
Compass Group . . . .601.5 4.5 606.0 501.0
Domino's Pizza UK . .394.8 8.0 586.0 373.9
easyJet . . . . . . . . . . . .352.8 2.5 479.0 322.3
Enterprise Inns . . . . . .66.5 -0.6 122.7 66.0
FirstGroup . . . . . . . . .338.0 0.3 412.6 311.3
Go-Ahead Group . . .1565.0 -13.0 1592.0 1042.0
Greene King . . . . . . .505.5 6.8 505.5 392.1
InterContinentaI . . .1257.0 29.0 1435.0 982.0
InternationaI Con . . .250.3 4.7 305.0 186.5
JD Wetherspoon . . . .431.3 -5.7 468.3 386.5
Ladbrokes . . . . . . . . .147.7 -0.1 152.2 122.7
Marston's . . . . . . . . . .101.5 1.3 117.1 90.4
MiIIennium& Copt . .486.0 4.5 600.5 392.0
MitcheIIs & ButIe . . . .320.8 2.6 361.0 274.0
NationaI Express . . .249.0 0.6 270.2 213.4
Punch Taverns . . . . . .72.0 0.9 90.4 58.0
Rank Group . . . . . . . .149.6 -0.3 153.0 94.8
Restaurant Group . . .294.6 2.7 335.0 208.2
Stagecoach Group . .250.2 2.5 251.2 160.7
Thomas Cook Group 127.1 0.0 204.8 125.7
TUI TraveI . . . . . . . . . .222.7 -3.6 271.9 190.0
Whitbread . . . . . . . .1590.0 17.0 1887.0 1361.0
WiIIiamHiII . . . . . . . . .222.7 2.5 223.5 155.5
Abcam . . . . . . . . . . . .415.0 4.5 428.5 244.0
AIbemarIe & Bond . .360.0 12.4 360.0 218.0
Amerisur Resource . .22.8 -1.5 29.0 11.5
Andor TechnoIogy . .636.5 -11.5 659.0 254.5
ArchipeIago Resou . . .60.5 2.0 66.8 32.3
ASOS . . . . . . . . . . . .2400.0 4.0 2468.0 840.0
AureIian OiI & Ga . . . .52.0 0.3 92.0 35.8
Avanti Communicat .374.8 -0.3 735.0 339.0
Avocet Mining . . . . . .200.0 9.3 253.5 112.0
BIinkx . . . . . . . . . . . . .113.5 0.0 148.8 33.5
Borders & Souther . . .49.5 -1.8 93.0 49.5
BowLeven . . . . . . . . .324.3 8.0 398.0 126.3
Brooks MacdonaId 1332.5 0.0 1372.5 767.5
CaIedon Resources .110.8 0.0 111.0 23.3
Conygar Investmen .108.0 -1.5 120.0 101.3
Cove Energy . . . . . . . .94.8 0.0 112.8 47.5
Daisy Group . . . . . . .125.0 5.0 127.3 86.0
EMIS Group . . . . . . . .520.0 0.0 555.5 303.5
Encore OiI . . . . . . . . . .60.0 0.3 151.5 47.5
Faroe PetroIeum . . . .156.5 -2.5 218.3 115.0
GuIfsands PetroIe . . .208.5 1.3 401.5 205.0
GWPharmaceuticaI .124.0 -1.0 127.0 83.0
Hamworthy . . . . . . . .643.0 14.5 684.5 297.5
Hargreaves Servic .1053.0 9.5 1053.0 560.0
HeaIthcare Locums . .112.5 0.0 112.5 112.5
Immunodiagnostic .1000.0 54.0 1000.0 604.0
ImpeIIamGroup . . . .361.1 -3.9 387.5 84.0
James HaIstead . . . . .467.6 2.8 485.0 306.0
KaIahari MineraIs . . .233.8 1.8 301.0 142.0
London Mining . . . . .336.8 3.8 436.5 211.0
Lupus CapitaI . . . . . .112.3 -0.8 150.0 72.0
M. P. Evans Group . .436.4 0.3 500.5 334.0
Majestic Wine . . . . . .461.8 1.8 470.3 293.0
May Gurney Integr . .273.0 1.0 285.0 177.0
Monitise . . . . . . . . . . . .28.8 1.8 29.5 17.8
MuIberry Group . . . .1475.0 23.0 1610.0 237.5
Nanoco Group . . . . . . .80.0 6.0 115.8 68.0
NauticaI PetroIeu . . .287.3 12.0 547.0 128.0
NichoIs . . . . . . . . . . . .540.0 -9.8 578.0 390.0
Numis Corporation . .100.4 -0.4 146.5 94.0
Pan African Resou . . .10.5 0.3 12.3 5.9
Patagonia GoId . . . . . .49.3 0.3 59.3 12.5
Prezzo . . . . . . . . . . . . .66.5 0.0 71.5 37.8
Pursuit Dynamics . . .313.0 -11.0 700.0 196.0
Rockhopper ExpIor .258.0 -4.3 510.0 202.5
RWS HoIdings . . . . . .450.9 0.9 472.0 239.0
Songbird Estates . . .153.3 1.3 160.3 135.0
VaIiant PetroIeum . . .579.0 -5.0 761.5 504.0
Young & Co's Brew . .640.0 -20.0 685.0 510.0
Dixons RetaiI . . . . . . .16.5 6.5
Betfair Group . . . . . . .771.5 6.2
Ocado Group . . . . . . .180.0 5.9
InternationaI Pers . . .336.7 5.1
Renishaw . . . . . . . . .1750.0 4.4
Aquarius PIatinum . .302.9 4.4
Afren . . . . . . . . . . . . .152.7 4.2
Imagination Techno .375.0 4.2
RoyaI Bank of Scot . . .36.6 4.2
Ferrexpo . . . . . . . . . .457.6 4.0
CabIe & WireIess W . .45.0 -13.9
JD Sports Fashion . .920.0 -5.2
Devro . . . . . . . . . . . . .266.6 -4.1
CabIe & WireIess C . . .38.1 -3.5
Moneysupermarket.c .99.5 -3.3
Carpetright . . . . . . . .667.5 -3.3
Perform Group . . . . .206.0 -3.1
HaIfords Group . . . . .388.4 -2.9
St. Modwen Propert .180.0 -2.7
Daejan HoIdings . . .2701.0 -2.5
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
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AUTOMOBILES & PARTS
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MINING
NONEQUITY INVESTM. COMM.
Tsy 2.500 11 . . . . .307.30 0.00 310.0 307.3
Tsy 3.250 11 . . . . .101.26 0.03 103.7 101.2
Tsy 9.000 11 . . . . .100.30 -0.03 108.6 100.3
Tsy 9.000 12 . . . .107.94 0.00 116.7 107.9
Tsy 5.000 12 . . . .103.00 -0.08 107.1 103.0
Tsy 5.250 12 . . . .104.27 -0.08 108.4 104.3
Tsy 4.500 13 . . . .106.23 -0.11 109.2 105.8
Tsy 2.500 13 . . . .286.75 0.02 287.7 274.9
Tsy 8.000 13 . . . . .115.69 -0.16 121.3 115.7
Tsy 5.000 14 . . . . .111.41 -0.21 114.1 109.2
Tsy 7.750 15 . . . .103.75 0.00 110.7 76.0
Tsy 8.000 15 . . . .126.50 -0.32 131.6 123.7
Tsy 4.750 15 . . . . .112.10 -0.29 114.7 108.6
Tsy 4.000 16 . . . .109.30 -0.39 111.4 104.9
Tsy 2.500 16 . . . .331.30 -0.05 334.1 304.4
Tsy 12.000 17 . . .126.76 0.00 185.9 126.0
Tsy 1.250 17 . . . . .110.99 -0.19 112.1 104.9
Tsy 8.750 17 . . . .136.14 -0.78 142.2 132.9
Tsy 5.000 18 . . . . .115.00 -0.54 117.6 109.7
Tsy 4.500 19 . . . . .111.19 -0.55 113.8 105.4
Tsy 3.750 19 . . . .105.33 -0.59 107.7 99.4
Tsy 2.500 20 . . . .337.98 -0.37 341.2 303.8
Tsy 4.750 20 . . . . .112.43 -0.67 115.9 106.6
Tsy 8.000 21 . . . .140.99 -0.70 147.1 133.8
Tsy 4.000 22 . . . .104.29 -1.01 108.4 99.0
Tsy 1.875 22 . . . . .115.70 -0.73 117.8 108.5
Tsy 2.500 24 . . . .294.16 -0.83 298.9 262.1
Tsy 5.000 25 . . . . .112.63 -1.08 118.5 107.4
Tsy 4.250 27 . . . .102.71 -1.16 108.8 97.9
Tsy 1.250 27 . . . .108.86 -1.02 111.2 100.5
Tsy 6.000 28 . . . .124.79 -1.13 132.7 119.5
Tsy 4.750 30 . . . .108.32 -1.14 115.0 103.0
Tsy 4.125 30 . . . .280.29 -0.88 284.0 248.7
Tsy 4.250 32 . . . .101.29 -1.20 107.8 96.0
Tsy 4.250 36 . . . .100.43 -1.34 107.4 95.0
Tsy 4.750 38 . . . .108.91 -1.31 116.5 102.8
Tsy 4.500 42 . . . .106.49 0.00 112.8 98.9
% %
Wealth Management | Markets
22 CITYA.M. 29 JUNE 2011
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south africa
D
rawing back
the curtains
of my
luxury
lodge,
I nd
baboons have left
me potent reminders
on my sundeck that
Im on their territory.
By the time I come
back from my morning
game drive, the area
is reassuringly
sweet-smelling and
dung-free but I denitely know
whos boss around here.
Ive come to Eagles Crag, a
collection of high-end lodges
within Shamwari, a game reserve
in South Africas Eastern Cape, for
my rst luxury safari experience.
I had arrived in the African
bush still fresh after a 40-minute
ight from Cape Town to Port
Elizabeth and a 90-minute
transfer to Eagles Crag. Those
with more time can drive along
the coast to Port Elizabeth,
stopping for a few nights along
the way on the Garden Route
which forms part of this journey.
Shamwari Game Reserve was
SHAMWARI
Life, love and luxury in
Wildlife holidays dont have to be about damp tents and
mosquito bites. Chloe Berman nds luxury and the big ve
at Eagles Crag safari lodge in South Africas Eastern Cape
set up in 1992 by Adrian
Gardiner with the
aim of restoring
the barren
farmland to
its former
glory. The
reserve is
also home
to a Born
Free Animal
Rescue and
Education Centre
which cares for
rescued lions and leopards.
On my rst game drive, I watch
three lion cubs lazing around
after a big feed, have a close
encounter with a family of
elephants and come across a
grunting hippo in a muddy lake.
On one occasion an elephant
strolls forward until he is inches
from our windowless vehicle,
stares us out for a moment
before loping off down the road.
Game drives offer the chance
to witness astonishing wildlife
interaction and the predator/
prey dynamics unfold an
experience zoos cannot provide.
In between drives, I gorge
on the amazing food served
in the main lodge, where you
can choose from South African
specialities such as ostrich and
sweetcorn fritters with springbok,
or beautifully presented interna-
tional dishes such as burgers,
pasta and salads.
With no televisions or internet
access in the rooms, relaxation
comes in the form of reading,
sunbathing and taking a dip in
my private plunge pool.
Rooms are elegantly decorated
in neutral tones with modern
African touches, and have
showers and bathtubs. Most
afford complete privacy save
for birdsong making them
perfect for couples.
The team at Shamwari are
committed to ensuring guests
get the most from their game
drives. They are also passionate
about conservation and focus
on protecting the land and
making sure its inhabitants are
comfortable and always know
theyre in charge.
O Eagles Crag costs from 720
per person per night, including
meals and game drives.
mantiscollection.com
Experts Choice
Nick McKay, managing director of London
agency Travel Designers, names his top ve
luxury safari properties in South Africa
Ulusaba Private
Game Reserve
Sir Richard Bransons
stylish reserve offers not only
a luxury safari experience
but also a great place to
relax and unwind. Each
individual lodge is quite different,
from Rock Lodge, which is carved into a rock
face 800ft above the reserve, to Cliff Lodge,
which has two suites, each with a private
pool or Jacuzzi overlooking the reserve.
Price: from 600 per person per night.
ulusaba.virgin.com
Sabi Sabi Private
Game Reserve
Situated on the banks of
the river, Sabi Sabi has been
around for 30 years and is
still a fail-safe choice. Each
of the four individually styled
conservation chic lodges offers personal
service and wonderful fusion cuisine.The
recently refurbished Earth Lodge is one of a
kind it is almost invisible in the landscape
with each suite featuring specially commis-
sioned furniture, plunge pools and butlers.
Price: From 565 per person per night.
sabisabi.com
Singita Kruger
National Park
Located on the eastern
boundary of the park,
Singitas suites are set into a
cliff top above the NWanesi
River. Designed in the style of
elevated lofts, the extensive use
of glass enhances the already spectacular
views. Price: from 1,032 per person per night.
singita.com
&Beyond Phinda
Private Game Reserve
Travel to one of Africas
most ecologically diverse
regions, KwaZulu-Natal,
where the varied terrain offers
exceptional game viewing.The
lodges range from intimate and
elegant to dramatic and stunning.
Price: from 466 per person per night.
andbeyondafrica.com
Leopard Hills
Private Game Reserve
Looking for somewhere
intimate and exclusive? This
elevated sanctuary offers the
very highest levels of accom-
modation and personal service.
With only eight suites, privacy is
top of the agenda here.Private sundecks and
rock plunge pools are the perfect spot for
relaxing before dining overlooking a natural
waterhole. Price: from 688 per person
per night. leopardhills.com
5 LUXURY SAFARIS
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tion to a problem that is obviously prov-
ing something of a conundrum. It will be
interesting to see which of Rolls-Royces
key markets are most taken with the car
when it completes its world tour in a
years time.
TECHY NEW YARIS
Toyota has released images of its third-generation Yaris with its
new look influenced by the little iQ. Designed to be small but spa-
cious inside the car will sell with three engines 1.0 and 1.33-litre
petrol and 1.4-litre diesel all are fuel efficient and clean. One of its
momentous offerings is the Touch and Go 6.1 inch screen, which
Toyota claims is a breakthrough in connectivity.
CAR TALK BY RYAN BORROFF
I
T seems fair to say that Rolls-Royce
owners are not eco warriors. So when
Rolls-Royce Motor Cars said they were
building a prototype electric Rolls-
Royce Phantom called the 102EX or
Phantom Experimental Electric (EE)
mine were not the only eyebrows raised.
But at the very least the concept is
intriguing. Why would Rolls-Royce build
an electric version of the worlds most
luxurious car?
Well, according to the spokesman from
RR, it has no real interest in being seen to
be green. For Rolls-Royce it is business sus-
tainability theyre worried about. The
company wants to know what alternative
powertrains its customers would be inter-
ested in when the petrols run out or
when driving a roller becomes so ostenta-
tious that too few people choose to do it
(whichever comes sooner). Thus its built
the 102EX to find out.
You wouldnt think a Rolls-Royce would
be well suited to electric propulsion, yet
actually its very good. Instead of the 6.75-
litre V12 engine, theres a massive stack of
batteries under the hood and two electric
motors driving the rear wheels. With no
gear changes to interrupt acceleration its
very impressive. Though not as quick as a
regular Phantom, the 388bhp 102EX
surges forward, (near-)silently and effort-
lessly.
Outside, the 102EX looks pretty much
like a regular Phantom except for a few
details. Check out the red double-R 102EX
badge on its flanks (red indicates experi-
mental), the glowing blue Makrolon
Spirit of Ecstasy emblem which sits atop
the radiator grille and that unusual iri-
descent and eerily wet-looking paint job.
Thanks to its minuscule ceramic nano
particles, the car looks as if its
shimmering.
Inside, Rolls-Royces designers have
taken the usual, traditional conservative
interior materials and shaken them up a
bit. The armrests, seats and even the floor
are trimmed in an earthy, chestnut, veg-
etable-tanned, natural-looking Corinova
leather and some wood that usually
trims the dash has been replaced with
aluminised foil weave. Even the wood
veneers are experimental and have
unique grains and patterns. The effect
is stunning. Although I find the
leather floor so unsettling that I
almost ask if I should take my
shoes off.
Cleverly, the 102EXs bat-
teries can be charged by
induction charging in
eight hours. This means
you can charge the 102EX
without actually plugging
it into the wall. Instead
you can park it over a
charging plate installed in
the garage floor. A special
Bluetooth system helps the
driver know whether theyve
lined the car up properly with
the charging station by way of
dashboard lighting. This means that
no ugly cables have to be attached to such
a beautiful car. That said, without the
charging plate the car can be plugged
into the wall. But doing so takes 20
hours. So youll need to buy two if its
used as a daily commuter.
So how relevant is it? Well first-
ly, most Rolls-Royces dont get
driven very far. This means the
the 102EXs 124-mile range
could be enough for some
owners. Some exclusive
hotels hotels like The
Peninsula Hong Kong which
runs a fleet of 14 Rolls-Royce
Phantoms ferry their most
valuable guests around in
such luxury. For those kind of
companies an electric Phantom
could make some sense. But
theres no doubt despite being an
intriguing combination of tradition
and emerging technologies the Rolls
Royce Phantom 102EX is an oddity, a solu-
THE VERDICT:
DESIGN hhhhi
PERFORMANCE hhhii
PRACTICALITY hhhhi
VALUE FOR MONEY hhhii
THE FACTS:
ROLLS-ROYCE PHANTOM
PRICE: Not for sale
0-60MPH: under 8sec
TOP SPEED: 100mph (limited)
CO2 G/KM: 0g/km
MPG COMBINED: 124mpg
SMARTER A1 FOR AUDI
Audi is introducing an even more fuel-efficient version of its A1
model. The A1 1.6 TDI is capable of 74mpg with emissions of just
99g/km CO2 thanks to an engine start-stop function, energy recu-
peration and optimisation of the fuel and engine management sys-
tems. Acceleration is 0-62mph in 10.5 seconds, and top speed is
120mph.
URBAN CROSSOVER COUPE
Citroen has launched its new DS4, a cool urban crossover coup
that has already won awards for its interior design. The car will sell
with five engines HDi 110 and HDi 160 diesel and VTi 120, THP
155 and a new THP 200 petrol. A DS4 equipped with the THP 200
engine is capable of 0-62mph in under 8.5 seconds, yet is still good
for 44.1mpg and pushes out just 149g/km of CO2.
With its experimental
electric Phantom,
Rolls is testing the
profitable eco waters
Lifestyle | Motors
23
This Rolls-Royce has
leather floors.
Unfortunately it may
never get made.
Rolling towards a greener future
WORDS BY
RYAN BORROFF
T
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IN WITH THE FLYNNS
BBC1, 8.30PM
Jim finds a fake driving licence
belonging to Chloe and, when she does
not answer her phone, Liam invades
her privacy to get some answers.
AFGHANISTAN: THE BATTLE ...
BBC2, 9PM
Mark Urban presents an account of
Britains five-year war in the region,
including testimonies and tactical
insights.
LEWIS
ITV1, 8PM
The lead actor in a student
Shakespeare production is murdered
and Lewis and Hathaway are struck by
the lack of grief among the crew.
BBC1
SKY SPORTS 1
5.30pmLive Twenty20 Cup
Cricket 9pmThe Sky Sports Years
10pmRingside Special 11pmTime
of Our Lives 12amRingside
Special 1amTwenty20 Cup
Cricket 3amFIFA Futbol Mundial
3.30amFootballs Greatest 4am
Ringside Special 5am-6amTime
of Our Lives
SKY SPORTS 2
2.55pmLive Test Cricket 10pm
Trans World Sport 11pm
Watersports World 12amTotal
Rugby 12.30amFIFA Futbol
Mundial 1amFootballs Greatest
1.30amInside the PGA Tour 2am
European Tour Weekly 2.30am
PGA EuroPro Tour Golf
4.30am-5.30amChampions
Tour Golf
SKY SPORTS 3
7pmLive Winning Post 9pm
Boots n All. Super League review.
10pmUltimate Challenge MMA
11.30pmAsian Tour Golf
Show12amChallenge Series
Golf 12.30amPoker 2.30am
Ultimate Challenge MMA
4am-5amBoots n All
BRITISH EUROSPORT
5.15pmLive Womens World
Cup Football 7.15pmWorld Cup
Show7.30pmWednesday
Selection 7.35pmEquestrian
8.35pmRiders Club. Magazine
show for equestrian fans. 8.40pm
PGA Tour Golf 9.40pmEuropean
Tour Golf 10.10pmLadies
European Tour Golf 10.20pmGolf
Club 10.25pmSailing 10.55pm
Yacht Club 11pmWednesday
Selection 11.15pmOlympic
Magazine 11.45pmEurosport for
the Planet 12.15am-12.30am
World Cup Show
ESPN
6pmNBA Classics 10pm
Premier League World. 10.30pm
Global Rallycross Championship
11.30pmPlanet Speed 12amLive
Major League Baseball 3am
Baseball Tonight 4amESPN Press
Pass 4.30amPremier League Top
50 Goals 5amSerie A
5.30am-6amBundesliga
SKY LIVING
7pmCSI: Crime Scene
Investigation 8pmPsychic Sally:
On the Road 9pmNikita 10pm
Supernatural 11pmFILMFatal
Attraction 1987. 1.20amCSI:
Crime Scene Investigation
3.20amGhost Whisperer
5.10am-6amCharmed
BBC THREE
7pmTop Gear 8pmPops Greatest
Dance Crazes 9pmFILMThe
Rock 1996. Action thriller, starring
Sean Connery and Nicolas Cage.
11.10pmFamily Guy 11.55pmKids
Behind Bars 12.55amAmerican
Dad! 3.25amPops Greatest
Dance Crazes 4.25am-5.25am
Kids Behind Bars
E4
7pmHollyoaks 7.30pmFriends
9pmFILMFerris Buellers Day Off
1986. 11pmAlan Carr: Chatty
Man 12amMy Name Is Earl 1am
Glee 1.50amAlan Carr: Chatty
Man 2.45amDavid Blaine: Frozen
in Time 3.30amPrivileged 4.15am
Reaper 4.55am-6amSwitched
HISTORY
7pmHeir Hunters 8pmAx Men
10pmOnly in America 11pmOil
Riggers 12amAx Men 2amDeep
Wreck Mysteries 3amHeir
Hunters 4amHow the Earth Was
Made 5am-6amIce Road
Truckers
DISCOVERY
8pmHow Its Made 9pmFinding
Amelia 11pmDisaster Eyewitness
12amBear Grylls: Born Survivor
1amFinding Amelia 3am
Deadliest Catch 3.50amFrontline
Battle Machines with Mike
Brewer 4.40amThrough the
Wormhole with Morgan Freeman
5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmBringing Home Baby 8pm
Little People, Big World 9pm
Untold Stories of the ER 10pm
Hospital Sydney 11pmThe Real
ER 12amUntold Stories of the ER
1amHospital Sydney 2amThe
Real ER 3amLittle People, Big
World 4amA Baby Story
5am-6amBringing Home Baby
SKY1
8pmEmergency with Angela
Griffin 9pmDavid Haye v Ricky
Gervais and Mickey Rourke 10pm
An Idiot Abroad 11pmA League
of Their Own 12amThe Chicago
Code 1amNCIS: Los Angeles
2.40amFringe 3.30amThe
Hangover 2 Special 3.40amOops
TV 4.10amAirline 5.10am-6am
Sell Me the Answer
BBC2 ITV1 CHANNEL4 CHANNEL5
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmWaterloo Road: BBC
News: Regional News
8.30pmCHOICE In with
the Flynns
9pmThe Apprentice
10pmBBC News 10.25pm
Regional News 10.35pmNational
Lottery 10.45pmNot Going Out
11.15pmFILMGone Baby Gone:
2007; National Lottery Update
1.05amSign Zone: Bang Goes the
Theory 1.35amAnimal 24:7
2.20amSaints and Scroungers
2.50amGreat British Railway
Journeys 3.20am-6amBBC News
5.50pmWimbledon 2011: Sue
Barker introduces further live
coverage from mens singles
quarter-finals day.
8pmToday at Wimbledon:
Highlights of todays mens
singles quarter-finals.
9pmCHOICE Afghanistan:
The Battle for Helmand
10pmThe Apprentice: Youre
Fired!
10.30pmNewsnight: Weather
11.35pmThree Men Go to
Venice
12.35amThe Tudors
1.30amBBC News 3.20am-6am
Close
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmPoms in Paradise
8pmCHOICE Lewis: A student
Shakespeare production ends
in murder.
10pmITV News at Ten
10.30pmLondon News
10.35pmLeahs Dream
11.35pmBaby Hospital
12.35amThe Zone; ITV News
Headlines
2.35amFILM Matchstick Men:
Crime comedy, starring Nicolas
Cage. 2003. 4.35am-5.30amITV
Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmEmbarrassing Bodies:
Live from the Clinic
9pm24 Hours in A&E
10.05pmDesperate
Housewives
11.05pm8 Out of 10 Cats
Uncut
11.50pmMusic on 4 1.30am
FILMThirteen Conversations
About One Thing 2001. 3.15am
Bobs Burgers 3.40amBobs
Burgers 4.05amHill Street Blues
4.55amWogans Perfect Recall
5.20am-6.05amCountdown
6pmHome and Away
6.25pmOK! TV
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Update
8pmSubmarine School: 5
News at 9
9pmNCIS
10pmCSI: Miami
11pmLaw & Order: Criminal
Intent
11.55pmPoker: Aussie Millions
12.55amSuperCasino
3.55amMeals in Moments 4.05am
Michaelas Wild Challenge 4.55am
County Secrets 5.10amWildlife
SOS 5.35am-6amHouse Doctor
1 2 3 4 5 6
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32
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29
11
11
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6
30
33
5
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8
Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Bottomless
gulf or pit (5)
5 Adult male
swan (3)
7 Coifure (6)
8 Bafing question
or problem (5)
10 Rise rapidly,
rush (5)
11 Admit ones
guilt (7)
14 Tramp (7)
16 Statement of
beliefs (5)
17 Cows milk-
gland (5)
19 Citrus fruit (6)
20 2240 pounds (3)
21 Delight (5)
DOWN
1 Domesticated llama with
long silky eece (6)
2 H Rider Haggard novel (3)
3 Mrs Simpson, Bart
Simpsons mother (5)
4 Tie the limbs of a bird
before cooking (5)
5 Small garden surrounded
by walls or buildings (9)
6 Foundation (4)
9 Person who is not
married or in a long-
term relationship (9)
12 Bathing resort (3)
13 Floor of a house (6)
14 Vociferous (5)
15 Distance between the
wheels of a railway train (5)
16 Insincere talk about
religion or morals (4)
18 Hideout (3)
E
I
C
L
S Y
N
E
R

4
4

4

P A T C H V I V I D
E R O O R
A L R E A D Y T H E
R A E A S E A
L E T T I N G D A M
Y E N T E R G
S E A V I S I T O R
H D O E S D I
O D D S T U D I E D
E E T L G
S I D E S W E A V E
1 5 2 3 4 3 9 2
8 9 3 7 7 5 8 9
7 1 7 2 1
1 6 8 1 9 2
5 8 7 4 9 3 2 6 1
3 1 6 7
1 4 9 6 8 5 3 7 2
7 1 5 9 6 5
1 2 5 3 9
8 9 4 7 7 6 8 9
1 7 2 3 2 1 4 3
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
CANDIDATE
Lifestyle | TV&Games
CITYA.M. 29 JUNE 2011 24
Sport
25
CHELSEA LOOK TO BEAT OFF
COMPETITION FOR NEYMAR
FIVE CLUBS TRIGGER BRAZILIANS
40M RELEASE CLAUSE: PAGE 27
FORMER world champion Jenson
Button would love nothing more
than to land his first ever podium fin-
ish at the British Grand Prix next
month.
The McLaren driver has been
unable to finish in the top three in 11
previous attempts at Silverstone but
he has narrowly missed out on a
number of occasions.
He has finished fourth twice in
2010 and 2004 and has also come
home in fifth place on two occasions,
first in his debut year in 2000, and
again in 2005.
And as the 31-year-old heads into
what will be his 200th grand prix he
is desperate to give his home fans
something to cheer about.
You always want to do well in
front of your home crowd, he said.
Last year was just a sea of rocket red
McLaren caps everywhere.
It was great to see the support,
and I think we put on a reasonable
show. Hopefully this year it will be
something similar, or better.
But weve got to hope we can find
some pace for there. Ive never been
on the podium at Silverstone, for
whatever reason. Ive been very
unlucky in some races, so hopefully
this time we can have a better pack-
age, and have a better chance.
RYDER CUP star Graeme McDowell
has declared it his dream to
play the Open
Championship in his home-
town of Portrush as he
vowed to help bring major
golf back to Northern
Ireland.
After receiving an hon-
orary degree from the
University of Ulster in
recognition of his tri-
umphs on the course, the
man Rory McIlroy succeed-
ed as US Open champion said
the region must first focus on
hosting an Irish Open or another
European Tour event.
I know myself and Rory would be
behind a Northern Ireland event with
the potential of then getting the
British Open back to Portrush, that
would be something, he said,
stressing the importance of
securing sponsors.
That is a dream of mine.
To play the Open
Championship in Portrush
is a wild dream, to play a
European Tour event in
Portrush is an achievable
dream and I will do
everything I can to make
it happen.
McDowell determined to
bring a Major back home
GOLF

FORMULA ONE

BRITAINS David Haye has fanned the

flames ahead of Saturdays big fight
by claiming Wladimir Klitschkos
coach Emanuel Steward had told him
he would love to help him beat his
own fighters brother, Vitali.
WBA heavyweight champion Haye
claims Steward has so little faith in
Wladimir he is already planning
ahead and claimed the American leg-
end who is a known admirer of the
Londoner wants to help him beat the
older Klitschko later this year.
Steward guided another
Englishman, Lennox Lewis, to victory
over Vitali in 2003 and Haye would ide-
ally like to beat both brothers before
retiring in October.
Haye, who hopes to add Wladimirs
IBF and WBO belts to his own title on
Saturday, bumped into the Kronk
trainer in Miami recently and said:
Manny and I got on really well. I have
a lot of respect for what he has done in
the sport. He seemed to be a massive
fan of my own work, too, which was a
nice bonus.
Manny even said hed love to train
me after Ive bashed up Wladimir, his
own fighter, on 2 July.
He reckoned that if we joined
forces I would be in prime position to
take down Vitali later in the year.
He was deadly serious about it, too.
Of course, as much as I admire Manny,
I feel I already have the best coach in
world boxing in Adam Booth, but it
was nice to receive a compliment from
someone so experienced. Its also good
to know he has as little faith in
Wladimir Klitschko as I do.
Haye continues
to irk Klitschko
BY JAMES GOLDMAN
BOXING

Silverstone podium would

provide real lift for Button
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Haye is hoping to unify the heavyweight division on Saturday Picture: ACTION IMAGES
SPORT | IN BRIEF
Sunderland medical for Wickham
FOOTBALL: England Under-21 interna-
tional Connor Wickham is expected to
undergo a medical with Sunderland with-
in the next 24 hours. The Black Cats have
moved swiftly after submitting a formal
offer in excess of 8m to Ipswich for the
18-year-old.
Murray named in Davis Cup team
TENNIS: Andy Murray will lead the Great
Britain team in their Davis Cup clash
against Luxembourg at the Braehead
Arena in Glasgow from 8-10 July.
Murrays brother Jamie partners fellow
Scot Colin Fleming in the doubles.
Hearts escape punishment
FOOTBALL: Hearts will not be punished
for the assault by a supporter on Celtic
manager Neil Lennon at the end of last
season at Tynecastle. An SPL report con-
cluded that Hearts stewarding and police
arrangements were consistent with safe-
ty requirements.
Woods unsure over return date
GOLF: Former world No1 Tiger Woods
still does not know if he will play at The
Open in two weeks time. Woods said: I
will come back when Im 100 per cent. I
dont know when that's going to be.
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email sport@cityam.com
Sport 26 CITYA.M. 29 JUNE 2011
FORMER champion Maria Sharapova
reached the semi-finals of
Wimbledon for the first time since
2006 and admitted she had encoun-
tered a lot of dead ends on her
route back to the big time.
The 24-year-old was Wimbledon
champion as a teenager in 2004 and
also has US and Australian Open suc-
cesses on her resume. But she lost
form and fitness after her early spurt
of success.
After yesterdays 6-1, 6-1 thrashing
of Dominika Cibulkova she said: I
would have loved for it not to have
taken this long but Im not complain-
ing.
Its the road that you take. Its not
always straight. There are a lot of zig-
zags. A lot of the time you feel like its
a dead end.
Ive worked really hard to get to
this stage, but Im not saying this is
where I want to end. I want to keep
going.
Sharapova faces Sabine Lisicki
tomorrow after the German defeated
Serena Williamss conqueror Marion
Bartoli 6-4, 6-7 (4-7), 6-1. In the other
semi-final Petra Kvitovawill will meet
the highest seed left in the draw,
Victoria Azarenka of Belarus.
Sharapova
sails through
to last four
TENNIS

BRITISH No1 Andy Murray will look

to take inspiration from Rory
McIlroys recent US Open victory as
he continues his Wimbledon cam-
paign against Spains Feliciano Lopez
this afternoon.
McIlroy (right), golfs hottest prop-
erty after he dismantled a world
class field at Congressional earlier
this month, secured his first Major
having blown a sizable lead at the
Masters in April.
Murray too has known significant
heartache in his sports biggest
events but believes that by adopting
McIlroys attitude he can finally
break his grand slam duck on
Sunday.
It was great, he said. I followed
all that was going on in the golf.
What happened with Rory earlier in
the year does happen to everyone
but its how you come back from it.
Ive had a fair few upsets in major
competitions. Its how you come
back from it.
The Scot has just three more hur-
dles to clear before being crowned
Wimbledon champion. The first, in
the shape of Lopez, looks consider-
ably more surmountable than his
likely next two opponents, but
Murray is refusing to take the
Spaniard lightly.
He serves very well,
has a good slice back-
hand, and plays different-
ly to a lot of other
Spaniards, said Murray.
Lopez is a tough player and
hes been playing well. Hes
got a good game for grass.
Lopezs compatriot, No1
seed Rafael Nadal, mean-
while has confirmed he is fit
enough to continue his
defence after an injury scare
in his fourth round win over
Juan Martin del Potro.
Murray follows
Rorys recipe
BY JAMES GOLDMAN
TENNIS

NEW ENGLAND one-day captain

Alastair Cook put personal disap-
pointment him to hail his sides
crushing 110-run win over against Sri
Lanka at the KIA Oval as the perfect
performance.
Torrential rain and thunderstorms
saw the match reduced to 32 a-side
overs and England set about their
task as if it were a Twenty20 fixture
and ended their innings on 229-8.
In response Jimmy Anderson who
also took three catches and Tim
Bresnan produced excellent opening
spells to decimate the tourists top
order before some belligerent lower
order slogging took Sri Lanka past
three figures.
Cook, who fell for just five stran-
gled down the leg-side off Lasith
Malinga, said: It doesnt get much
better than that.
I thought it was an outstanding
performance from all our bowlers but
Jimmy up front to get them 15 for
four and get their danger men out got
us ahead of the game.
The way we batted and handled
the rain break was very special as
well. Englands solid total was built
largely on
a n
innings of
61 from 56
balls from
the recalled
Craig Kieswetter
at the top of the
order, while there
were also handy contri-
butions from Eoin
Morgan and Kevin Pietersen.
It looked no more than par
score, however, but once Sri Lankas
much vaunted top four including
Sanath Jayasuria playing the final
match of a distinguished internation-
al career were back in the hutch for
a combined score of 13 it was ren-
dered a match-winning total.
Despite his obvious delight at hav-
ing tamed the side who ended
Andrew Strausss tenure as ODI cap-
tain with a 10-wicket defeat in the
World Cup quarter-final, Cook was
cautious about the remainder of the
five-match series. Its a really good
start, lets not get too carried away
about how I did or the team did, he
said.
Its just a good start and we have
to keep our feet on the floor. Were
not in it for personal plaudits, were
in it
to win games
of cricket.
Sri Lanka
c a p t a i n
Ti l l akarat ne
Dilshan added:
We had to take
chances but the
risks we took did-
nt pay off.
For the last
two days it has
been sunny condi-
tions but when it
comes to the match
it is rainy and over-
cast which is normal-
ly a help to the
English bowlers.
BY JAMES GOLDMAN
CRICKET

CHELSEA are among a quintet of

European heavyweights to have
entered the race for Brazilian sensa-
tion Neymar.
The 19-year-old Santos forwards
40m release clause is believed to
have has been met by Chelseas
Premier League rivals Manchester
City, Spanish giants Real Madrid and
ambitious oil rich Russian side
Anzhi Makhachkala.
Neymar inspired
Santos to victory in the
Copa Libertadores
the South American
equivalent of the
Champions League
last week and
although his club
would prefer to keep
hold of their prize
asset, their president
Luis Ribeiro admitted
they were powerless to do so.
We dont want to sell the play-
er but there is a release clause in his
contract that can be paid, he said.
Five European clubs have offered
to match the clause.
I cannot name them because
there is an agreement between
Santos and the clubs but they are
the most important clubs in Europe.
They have asked to speak to the
player and obviously weve allowed
them to. The clubs have behaved eth-
ically. They sought out Santos first
and were willing to pay the clause.
With this ethical approach, they
can talk to anyone with Neymars
father, with his agent Wagner
Ribeiro, and with the representa-
tives of Neymar.
Chelsea attempted to force
through a deal to sign the player last
year but Santos frowned upon the
west London clubs aggressive tac-
tics and the player remained in
Brazil.
But Ribeiro added:
Last year, Chelseas
attitude was differ-
ent. Their first action
was to seek out the
players representa-
tives.
The capture of
Neymar would repre-
sent a dramatic state-
ment of intent from
Chelseas new manager
Andre Villas-Boas (inset),
and could closely be followed by
the exits of Didier Drogba and
Florent Malouda.
The Ivory Coast striker has been
heavily linked with a return to his
former club Marseille while
Malouda, another member of
Chelseas over 30s brigade, is attract-
ing the interest of a clutch of Italian
clubs including both Milan sides
and Roma.
Chelsea enter
five-way fight
for Neymar
BY JAMES GOLDMAN
FOOTBALL

Neymars 40m release clause has been met by five clubs Picture: ACTION IMAGES
Sport
27 CITYA.M. 29 JUNE 2011
Anderson and Kieswetter get captain
Cooks reign off to best possible start
BATTING
If Alastair Cook ends his one-day
career with a strike rate of 166.66
nobody will dare suggest he doesnt
score fast enough. Unfortunately,
although the strike rate was fine yes-
terday, he only managed five runs
before an unlucky dismissal. In terms
of his captaincy it was encouraging to
see Eoin Morgan promoted up the
order too many times in limited
overs cricket he has been left batting
with the tail, while Craig Kieswetters
recall paid instant dividends.
BOWLING
No marks for originality in selecting
James Anderson to open the bowling
but Tim Bresnan, back from injury,
rewarded his new captains faith with
a controlled initial spell. Stuart Broad
looks like hell have to get used to life
as a first change, while Jade Dernbach,
selected in preference to star of the
recent Test series Chris Tremlett, per-
formed solidly. Cook didnt have to try
anything too adventurous with his field
placings but kept the pressure on
throughout.
CAPTAINS LOG | THE COOK REPORT
HE PLAYS LIKE...
Short, full of tricks and an eye for goal
comparisons with Lionel Messi are not
without substance. Although listed as
a striker, Neymar is equally comfort-
able on the wing and would fit per-
fectly into the 4-3-3 inverted winger
system Andre Villas-Boas is likely to
employ at Chelsea.
CARRIES SOME BAGGAGE...
For one so young he already has a fair-
ly lengthly list of black marks against
his name. Pele has criticised him for
diving, he was banned for two weeks
last year after falling out with his
Santos coach and last week caused a
full scale punch up during the Copa
Libertadores final.
WHAT THEYRE SAYING...
I think that you have to focus on
Neymar. He is a great player and the
future of the green and gold
Double World Cup winner Ronaldo.
NEYMAR | BRAZILS NEXT BIG THING
HAYE
CONTINUES
WITH MIND
GAMES
Klitschkos trainer
doesnt rate him,
says Briton:
Page 25
SPORT
BOXING
Arsenal board come
under heavy fire
FORMER Arsenal director Lady
Bracewell-Smith feels the current
Gunners board needs to be more pro-
active.
Bracewell-Smith, whose family have
a long association with Arsenal, left
the north London club in December
2008 and in April sold her 15.9 per
cent holding to Stan Kroenke, which
paved the way for the American to
launch a full-blown takeover.
However, she remains unimpressed
with events behinds the scenes at
Emirates Stadium.
She said: In time we will need a
more dynamic pro-active younger
board, and a good directional leader-
ship. [They] couldnt handle a woman
with power on the board. They felt
insecure. Male chauvinism.
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