STUBBORNLY high inflation and

unemployment have pushed

Britains misery index to record lev-
els, according to official data
released yesterday.
The misery index used by econ-
omists to estimate the unhappiness
spread by joblessness and the rising
cost of living almost certainly
jumped to a fresh high last month,
as an extra 37,100 people joined the
dole queue.
Unemployment rose by 38,000 in
the second quarter of the year, to
total nearly 2.5m people 7.9 per
cent of the workforce.
The misery index is calculated by
adding unemployment as a per-
centage of the workforce to the con-
sumer price index (CPI). The most
recent readings put the figure at
12.3, higher than at any time since
the CPI began over 14 years ago.
Price pressures were surprisingly
harsh in July, coming in at 4.4 per
cent (CPI), according to data
released on Tuesday.
The index could hit the demoral-
ising 13 mark in coming months, as
CPI inflation stretches to five per
cent and unemployment edges
back up to eight per cent the
same level as at the beginning of
2010.
Analysts say the jobs market has
now taken a turn for the worse,
threatening to reverse progress
made earlier in the year.
The labour market has decisive-
ly turned, commented Andrew
Goodwin of the Ernst & Young Item
Club. Were expecting to see a
peak of close to 2.7m in unemploy-
ment next year.
Some analysts say that changes
to the benefit system are warping
the figures, however. Ongoing clas-
sification changes compounded the
soft patch surge in claimant count,
said Nomuras Philip Rush, also not-
ing that thousands have moved
from inactive to unemployed in
the figures.
The inactivity level fell by 23,000
in the quarter. Furthermore, the
number of people in employment
rose by 25,000. In the year to March,
the private sector added 520,000
new jobs, while 143,000 were shed
from the government sector. Total
pay, meanwhile, rose 2.6 per cent in
the second quarter of the year com-
pared to a year earlier.
Nonetheless, yesterdays down-
beat news -- compounded by the
ongoing debt crisis in the
Eurozone, stock market collapses
and a slowdown in the global recov-
ery has prompted the Bank of
England to consider a controversial
second round of quantitative eas-
ing dubbed QE2.
Further asset purchases might
become warranted were some of
the downside risks [to the economy]
to materialise, argued some of the
Banks senior officials at their
August meeting.
While a few other members of
the monetary policy committee
(MPC) remain concerned that QE2
would stoke inflation even further,
governor Mervyn King has made
positive noises about the move.
If we need to we can carry out
more asset purchases, King said
last week.
Startled by recent bearish news,
the Banks MPC took a notable turn
towards its doves side of the argu-
ment in August.
The two members who had previ-
ously voted for a small (0.25 per
cent) step towards normalisation
in Bank rate -- Spencer Dale and
Martin Weale -- this time joined gov-
ernor King in voting for no change
in interest rates.
The surprisingly dovish minutes
knocked sterling to a low for the
day of $1.6352, although it later
pared losses to reach $1.655.
September gilt futures rose after
the Banks minutes were released,
reaching 129.28, a spike of 0.86 per
cent.
ALLISTER HEATH: P2
FTSE 100 5331.60-26.03 DOW 11410.21 +4.28 NASDAQ 2511.48 -11.97 /$ 1.65 UNC / 1.15 +0.01 /$ 1.44 UNC
www.cityam.com Issue 1,449 Thursday 18 August 2011 FREE
HENDERSON
HITS OUT
BOSS FORMICA
SLAMS HAPLESS
POLITICIANS P8
SABMILLER GOES HOSTILE
IN ITS BID FOR FOSTERS
BAR BRAWL KICKS OFF P5
BUSINESS WITH PERSONALITY
Certified Distribution
04/07/2011 till 31/07/2011 is 93,093
12
10
8
6
2004 2005 2006 2007 2008 2009 2010 2011
l
ANALYSIS: MISERY INDEX SOARS TO A FRESH RECORD HIGH
BY JULIAN HARRIS
UK ECONOMY

M
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r
y

i
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(
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MORE MISERY
News
2 CITYA.M. 18 AUGUST 2011
Osborne must heed the Misery Index
FOR years now, American elections
have featured discussions of the
Misery Index, a simple indicator which
sums the unemployment and infla-
tion rates. The higher the index, the
angrier the electorate. In 1976, Jimmy
Carter famously made a big deal of the
index, arguing that Gerald Ford had
no right even to seek the presidency
given his and his predecessor Richard
Nixons record. Carter won only to be
crushed by Ronald Reagan in 1980
after the Misery Index jumped further.
The bad news for David Cameron is
that Britains own Misery Index the
annual percentage rise in the con-
sumer price index (CPI), plus the per-
centage of the workforce unemployed
is rocketing. While it is undoubtedly
still much lower than when inflation
was in double-digits in the 1970s, it is
the highest since at least 1997, the date
from which we have CPI statistics.
Tuesdays inflation figures were
grim, as were yesterdays jobs num-
bers. CPI inflation is 4.4 per cent and
retail price index inflation five per
cent. With total pay up 2.6 per cent on
average, the average worker has suf-
fered a real-terms cut of up to 2.4 per
cent over the past year. GDP growth
was just 0.2 per cent in the second
quarter, an estimate which unlike that
of some previous quarters feels rough-
ly right and tallies with the jobs stats.
The total number of jobs rose by just
25,000 in the second quarter ending in
June, not enough to keep up with the
labour force; unemployment rose by
38,000. Fortunately, the private sector
continues to create more jobs than the
public sector is losing: it even had to
compensate for a 28,000 drop in sub-
sidised trainees as well as for general
job cuts in the public sector last quar-
ter. Over the past year, a net 251,000
extra jobs were created in the econo-
my, with far more than that added by
the private sector.
One possibly scary development was
that total weekly hours worked in the
economy fell 1.2 per cent quarter on
quarter and 0.8 per cent on the year,
the second sharpest drop of the last 10
years, following a series of good quar-
ters since the end of the recession. So
what is going on? I have long moni-
tored that statistic because it is usually
a good measure of the underlying
demand for labour, adjusting for varia-
tions in part time work. So at first
sight, this development looks like a
disaster, the equivalent of nearly
200,000 full time equivalent job losses.
But the royal wedding took place dur-
ing the quarter, which means that for
one week out of the roughly 13 in a
three month period, nearly everybody
worked 20 per cent less, and thats
even without the additional holidays
taken by millions. Roughly speaking,
we should expect to have lost at least
1.5 per cent of total working hours that
quarter, compared with a normal
quarter. Most likely, therefore, what
looks like a crisis is merely a mirage.
We shall know for sure next quarter.
But there was plenty of real bad
news with a real human cost. The
number of people with second jobs is
down; vacancies are down; redundan-
cies are up. The number of UK born
workers in jobs is down 50,000 over the
past year, while the number of foreign-
born is up 289,000, showing that too
many UK born folk have a skills and
attitude problem. Youth unemploy-
ment is up, as is that of women (who
are disproportionately employed by
the state). Unless it gets its act together
on jobs and inflation, the coalition
could end up like Jimmy Carter, wiped
away by powerful economic forces it
failed to control.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
NEWS | IN BRIEF
Ocado founder wife cuts stake
The wife of one of the Ocado founders
slashed her stake in the firm just before
it crashed to a record share-price low.
Kira Faiman, wife of Jonathan Faiman,
sold at least 7m worth of stock on 9
August through Tempest Capital. The
firm has seen its stock tumble to below
its flotation price as analysts cut their
forecasts for the online grocery busi-
ness. It scraped a float price of 180p
last July after initially hoping for a valu-
ation of up to 275p a share.
Bra-maker sells out to Belgians
Rigby & Peller, bra-maker to the Queen
and Lady Gaga, has sold an 87 per cent
stake to Belgian lingerie firm Van de
Velde for 8m. The deal will provide a
windfall for the Kenton family, who have
run Rigby & Peller as a family business
since 1982. It is understood the family
will continue to be involved in the day-
to-day running of the company. The Van
de Velde investment will help drive the
companys ambitious growth plans,
according to June Kenton, who has
worked in the bra industry for more
than 50 years. Last year the firm had
sales of 10.1m.
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Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Alice Hepple
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Commercial Director Harry Owen
Head of Distribution Nick Owen
Jupiter to take Minerva private
EMBATTLED property developer
Minerva is to leave the London
Stock Exchange after most of its
investors accepted a cash takeover
offer that values the firm at 202m.
Jupiter Properties 2011, a special
purpose vehicle set up by Area
Property Partners and Delancey, yes-
terday said it had approval from 91
per cent of Minerva investors.
This sum includes unvested
shares pledged by Minerva directors
under their long-term incentive
plans.
The sale brings to an end
Minervas turbulent relationship
with biggest shareholder Nathan
Kirsch, who mounted his own,
unsuccessful, takeover bid in 2009
and has been a long-time critic of
the groups strategy. It emerged yes-
terday that his stake has been sold
to Jupiter after months of holding
out, taking the suitor comfortably
above the 75 per cent acceptance
threshold needed for the takeover
to progress.
The South African billionaires
KiFin vehicle was not thought to be
among the interested potential bid-
ders this time around.
Despite investor criticism of the
current management team, led by
chief executive Salmaan Hasan, it is
understood that Jupiter has no
plans to make sweeping changes to
the top team once the firm is taken
private. However, talks are ongoing
about the make-up of the board.
Minerva, which had debts of
859m at the end of last year, has
been pursued by a number of suit-
ors after encountering problems
with its pricey new developments in
the City.
The 410,000 square foot Walbrook
(pictured left) remains empty
almost 18 months after completion.
Jupiter Properties is advised by
Alex Midgen and Richard Blackwell
of NM Rothschild, alongside Fraser
Greenshield, Tim Medak and Mark
Harrison of Ernst & Young.
BY MARION DAKERS
PROPERTY

ASAHI IN $1.3BN ALCOHOL DEAL

Asahi is poised to agree the NZ$1.5bn
(800m) acquisition of Independent
Liquor, the Australasian drinks
group, in a deal that would represent
the acquisitive Japanese brewers
largest takeover to date. Barring a last
minute hitch, Asahi will strike a deal
for the Auckland-based group today,
according to a person close to the sit-
uation.
GRASSLEY QUIZZES SEC ON FILE PURGING
A whistleblower at the Securities and
Exchange Commission has accused
the agency of destroying more than
9,000 files related to preliminary
investigations into SAC Capital,
Bernard Madoff, Goldman Sachs and
other financial groups, according to
Charles Grassley, senior Republican
on the Senate judiciary committee.
Grassley wrote to Mary Schapiro, SEC
chairman yesterday.
DISNEY SELLS 30-YEAR BONDS
Walt Disney on Wednesday sold its
first 30-year bonds in nearly a decade,
paying historically low rates in a sign
that top US companies can get cheap
funding in spite of the recent turmoil
in the global financial markets. The
amount of additional yield that
investment-grade companies have to
pay versus US Treasuries, known as
the spread, on their bonds has risen
in recent weeks.
ELISABETH MURDOCHS SHINE MILLIONS
Elisabeth Murdoch, daughter of News
Corp chief executive Rupert
Murdoch, received $214m from his
groups purchase of Shine, her televi-
sion company. Though it was known
that Murdoch had benefited hand-
somely from the sale, the exact figure
was not revealed until News Corp
filed its 10-K annual report on
Monday. News Corp bought Shine,
which produces shows including The
Tudors and MasterChef, for $673m in
February.
A-LEVEL RESULTS START 3BN SCRAMBLE
A scramble for university places will
begin today as hundreds of thou-
sands of teenagers receive their A-
level results. With a record number
applying to university, candidates
who miss offers by even one grade
will face the toughest competition
ever seen to find an alternative place
through the clearing system.
LAWYERS HIT OUT AT POLITICIANS
The Prime Minister defended courts
yesterday for handing out long sen-
tences for people involved in rioting,
as the coalition split over the penal-
ties imposed. Senior Liberal
Democrats criticised ministers for
attempting to influence the courts by
calling for harsh sentences. Lawyers
also warned that the Prime Ministers
praise for tough sentences risked giv-
ing the public the impression that
judges were no longer independent.
POLICE ASKED TO PROBE HUHNE AGAIN
Chris Huhne, the energy secretary,
was under pressure today after prose-
cutors asked police to continue their
investigation into claims his ex-wife
took speeding points on his behalf.
The CPS has requested further evi-
dence from Essex police as it exam-
ines allegations that Mr Huhne asked
his estranged wife, to accept his points
so he could keep his licence.
ROYAL WEDDING BOOSTS HELLO!
The royal wedding and excitement
about the new Duchess of Cambridge
helped to lift newsstand sales of Hello!
magazine by more than a quarter in
the first six months of the year. The
weekly publication, known for its
glamourous photoshoots of Royals
and socialites, said it sold more than
1.1m copies of its royal wedding issue
and that sales have remained higher
than before ever since.
FDA BACKS ROCHE DRUG
A new skin-cancer treatment that
promises to shrink tumors and pro-
long the lives of patients with a par-
ticular genetic mutation won speedy
approval that signals US regulators
enthusiasm for such targeted thera-
pies. Vemurafenib, from Roche
Holding AG and Daiichi Sankyo,
belongs to an emerging class of treat-
ments that targets the molecular
underpinnings of the cancer.
ABERCROMBIE EARNINGS UP 64PC
BUT SEES FALLING MARGINS AHEAD
Abercrombie & Fitch, which posted a
64 per cent jump in fiscal second-
quarter earnings as sales soared, is
starting to feel the pinch of rising
costs, and, like other retailers,
warned worries about the economy
are back on the rise. Abercrombie's
shares were down more than four per
cent on the firms outlook.
WHAT THE OTHER PAPERS SAY THIS MORNING
News
3 CITYA.M. 18 AUGUST 2011
A TAX on financial transactions
would be economic suicide
according to a study published this
morning by a leading Westminster
think tank.
The Tobin tax, set to be tabled at
the European Union in September,
would drive jobs away from the City
to lower-taxed parts of the world,
the Adam Smith Institute (ASI)
argues.
The adoption of a Tobin tax in
Sweden in 1984 drove half of its
equities to London by 1990, the
report states. The Citys enviable
status as a financial centre would be
devastated if a politically motivated
but economically flawed Tobin tax
was introduced, the ASI said today.
The adoption of an EU-wide levy
has been pushed in Brussels by the
Robin Hood Tax campaign. The
group dismissed the ASIs findings
as scaremongering today, yet faces
strong opposition from the finan-
cial sector, as well as
from business groups
such as the CBI.
Accountant BDO
yesterday dismissed
the claim that the tax
would raise 200bn
for governments
as highly opti-
mistic.
Taxpayers
should also be
concerned as
to whether
this could, in fact, decrease the tax
base and further slow Europes
growth prospects, the group said. If
the tax is limited to the EU, rather
than implemented globally, it could
push market liquidity, business
and related jobs to countries which
do not impose such a tax, BDO said.
The ASI added
that the levy
could in fact
worsen market
instability.
European lead-
ers Angela
Merkel and
N i c o l a s
Sarkozy (left)
endorsed the
tax on
Tuesday.
Tobin tax would be
suicide, report says
BY JULIAN HARRIS
TAXATION

PLANS to impose a Tobin tax across

the European Union sent shares in
Londons financial stocks tumbling
yesterday.
German chancellor Angela
Merkel and French President
Nicolas Sarkozy unveiled proposals
to push for a pan-European finan-
cial transactions levy on Tuesday
evening.
Analysts say any such charge
would hit European financial cen-
tres like the City and especially
those businesses that rely on a
large number of financial transac-
tions for their revenues.
Interdealer broker Icap and
spreadbetting company IG Group
both tumbled 3.7 per cent to close
at 16.5p and 15.8p respectively,
while Tullett Prebon shed 4.2 per
cent to 15.5p on the back of the
news. Shares in the London Stock
Exchange also tumbled, falling 2.8
per cent to 24.5p.
James Hamilton, an analyst at
Numis, said the internationally-
focused Icap and Tullett had the
least to lose should trade relocate
elsewhere, while the London Stock
Exchange and IG Group would be
more impacted by clients taking
business to other jurisdictions.
European proposal for transactions
levy takes its toll on financial stocks
TAXATION

AN unidentified bank was forced to

seek an emergency $500m (305m)
loan in US dollars from the European
Central Bank yesterday in a sign
lenders may be struggling for liquidi-
ty again.
The seven-day loan was the first
time the ECBs dollar swap facility has
been tapped since March, and the first
large loan it has given since May 2010.
In a further sign the bank may have
borrowed in desperation, the ECB
priced the loan at an interest rate of
110 basis points, far higher than stan-
dard dollar market rate of about
88bps.
Economists said the development
was worrying and showed a loss of
trust in the interbank loan market
that echoed the start of the last finan-
cial crisis in 2008.
It rings a couple of warning bells,
said Evolution analyst Elisabeth
Afseth. Banks have been very reluc-
tant to use the facilities and it is quite
a high amount so it is not good news.
This shows that the situation has
escalated, said Citigroup analyst
Juergen Michels.
But both analysts said the unlimit-
ed nature of the ECBs loan facilities
would effectively prevent any repeat
of a 2008 crisis even if banks experi-
enced a similar loss of liquidity.
The loan followed a week of heavy
use of the central banks euro-denom-
inated overnight loans.
Frances banks were last week hit by
rumours that they were highly
exposed to risky Eurozone debt, lead-
ing to reports that Asian banks were
cutting credit lines to them.
Italys banks have also suffered
interbank liquidity shortages over
recent months.
Mystery bank taps
ECB dollar facility
for emergency loan
BY ALISON LOCK
BANKING

CITY VIEWS: DO YOU TRUST THE EU TO RESOLVE ITS

DEBT CRISIS? Interviews by Eshe Nelson
I'm not sure. They still need to prove themselves.
The Tobin tax certainly hasn't helped. It's as if they
needed to have a meeting to say they were
doing something and they came out with a
tax because it was the simplest answer.
CAMERON LAING | NOMURA
Not really, I dont think they are involved enough with
whats going on in the global economy. I also think
that if they are going to present themselves as a united
front, then they need to properly act like one.
There is still too much uncertainty.
No, I think they will continue with delaying tac-
tics, which won't work. The effect is likely to be
huge on us. Many people are suggesting that
we withdraw away from the EU. It isn't
looking particularly good right now.
NIGEL O'NEILL | AMICUS CONSULTING
NICK SUTTON | DWF
3.7%
3.7%
2.8%
IG Index
Icap
LSE
THE SWISS franc climbed yesterday
and could hit record highs against the
dollar and euro in days ahead if new
measures by the Swiss National Bank
fail to slow the currencys rise.
While the SNB announced an
expansion of its liquidity policy,
investors who bet on more aggressive
action were disappointed that the plan
did not include pegging the franc
exchange rate to the euro or dollar.
The Swiss franc strengthened even
after the SNB statement, in which it
also reiterated that it would take addi-
tional steps if needed.
Investors may continue to plough
into the Swiss franc, with the Swiss
two-year swap spread actually touch-
ing negative territory yesterday.
The euro had earlier tumbled more
than two per cent against the franc in
volatile trade to hit a low of 1.12248
francs, although losses were later
pared and it was last at 1.1392 francs,
down 0.7 per cent. If Eurozone
investors want to buy the Swiss franc
because they dont feel safe, theres
nothing the Swiss can do about it,
commented Greg Anderson of CitiFX.
Swiss franc
climbs again
SWISS ECONOMY

* These views are those of the individuals above and not necessarily those of their company.
SABMILLER yesterday went hostile in
its bid for Fosters after the brewers
board rejected a 6.1bn offer and
flatly refused to enter negotiations.
The owner of brands including
Peroni and Grolsch has not raised its
offer but is directly approaching
shareholders to convince them to
back a deal.
Fosters immediately rejected
SABMillers offer in June, and chief
executive John Pollaers said the offer
was so low it was not worth dis-
cussing.
He recently came under fire from
some shareholders for failing to
engage with SABMiller.
Yesterday Australias Perpetual
Investments, which has a 4.7 per
cent stake in Fosters, welcomed the
direct approach.
Matthew Williams, Australian
equities manager at the company
said: As a shareholder, the move is
welcome in that itll get the parties
engaged. The ball is in play.
A deal would join together the
brewer of Miller Lite, Peroni and
Becks with the Melbourne-based
maker of Victoria Bitter, Pure Blonde
and Cascade beer, and would be the
biggest brewing deal since InBev
paid $52bn (31.5bn) to buy
Anheuser-Busch to form AB InBev in
the worlds biggest cash takeover in
2008.
SABMiller is convinced its offer for
Fosters is fair given tough market
conditions. But some analysts says
Fosters may look to launch a share
buyback or pay a special dividend in
order to thwart SABMiller, and some
shareholders said this was a possibil-
ity.
Rival Carlsberg yesterday cut its
full-year outlook when reporting a
13 per cent fall in quarterly profit
that missed forecasts, after sales in
its key Russian market were hit by
higher prices.
SAGE is understood to be the front
runner in the bid to acquire Australian
business software group MYOB.
It has placed a final bid for the firm,
alongside Bain Capital and Kohlberg
Kravis Roberts (KKR).
The winning bid is expected to be as
high as $1.4bn (850m), based on the
price of similar deals, according to
analysts. Earlier predictions that the
bid could be around $1bn suggest a
profit multiple of around 10 times.
However, Kohlberg Kravis Robertss
investment in Norways Visma in
September 2010 attracted a multiple
of 12.5 times and HG Capitals
TeamSystem deal was struck at 11.3
times.
It is understood Deutsche Bank,
which has a long-standing relationship
with the accountancy firm, is acting as
corporate broker for Sage. Private equi-
ty firms Archer Capital and
HarbourVest Partners, which bought
MYOB for about 287m in 2008, have
hired UBS to advise on the sale.
Sage is front runner in race for MYOB
in a takeover that could cost it $1.4bn
LEHMAN Brothers will not turn its
asset management unit into a long-
term business after creditors of the
bankrupt investment bank objected.
Lamco, or the Legacy Asset
Management Co, instead will contin-
ue on its path to liquidate Lehman
assets over the next few years to pay
back creditors, and will no longer
look for a partner to manage the busi-
ness, chief executive Bryan Marsal
said. Under the current governance,
as long as it is in bankruptcy, a Lamco
partnership will not be pursued, said
Marsal, who is overseeing the worlds
biggest bankruptcy.
Marsal presented the possibility of
a partnership between Lamco and
another firm at a creditors meeting
earlier this year, saying the arrange-
ment would strengthen the asset-
management business.
Lehman started looking for a part-
ner for Lamco after its creation was
approved by a Manhattan bankruptcy
court in April 2010.
Lehman shelves Lamco
asset management plan
BANKING

THE economy may be weighed down

by high inflation and unemployment
but family owned businesses appear
to be weathering the storm.
The top 10 family owned firms all
increased their sales in the last year.
Total sales for the UKs biggest fam-
ily-owned businesses rose 10.2 per
cent to 35.5bn, driven by a strong
performance from the top four com-
panies Associated British Foods
(ABF), Stemcor, Swire Group and
Laing ORourke, according to a survey
conducted by the Institute for Family
Business (IFB).
ABF, which owns brands including
Kingsmill, Primark and Twinings,
topped the table although Stemcor,
the worlds largest independent steel
trader, narrowed the gap in second.
The top three places remained the
same as last year. The only new entry
to the list is Shop Direct, the online
and home shopping retailer, replac-
ing European Metal Recycling.
IFB director general Grant Gordon
said: The UK has seen difficult trad-
ing conditions in the last year, but
there have been some remarkable
success stories among the UKs top
family businesses.
With family firms contributing
almost one third of our GDP the fam-
ily business sector is becoming an
increasingly important part of the
UKs future economic growth, Grant
added.
Family businesses see sales hike
BY STEVE DINNEEN
UK ECONOMY

SABMiller in
hostile bid
for Fosters
BY JOHN DUNNE
CONSUMER

BY STEVE DINNEEN
TECHNOLOGY

ABF was founded by Toronto-born W

Garfield Weston in 1935. Third generation
George Weston, 47, is currently chief executive.
Stemcor was formed in 1951 by Hans
Oppenheimer. The majority of shares are still
held by the family.
FAST FACTS | FAMILY BUSINESS
News
5 CITYA.M. 18 AUGUST 2011
ANALYSIS l SABMiller
p
16Aug 15Aug 12Aug 11 Aug 17Aug
2,125
2,175
2,075
2,025
1,975
2,139.00
17 Aug
JOHN Muncey is leading the JP
Morgan team working on
SABMillers bid for Fosters.
He is head of the consumer cor-
porate finance team at the bank,
where he has worked for four
years.
Muncey has a vast array of expe-
rience in the consumer sector, hav-
ing previously worked at UBS
where he was a managing director
of the European consumer team.
His list of clients included Diageo,
the drinks company; Scottish &
Newcastle, the UKs biggest brew
er and Kraft, the US food group;
and Tchibo Holding of Germany
Prior to joining UBS, he was with
Hill Samuel for eight years.
He is seen as a pivotal player,
bringing in new, heavyweight
clients involved in M&A activity.
A syndicated loan of more than
$9bn has been secured, according
to banking sources.
Other advisers on the deal
include Moelis, RBS and Morgan
Stanley with teams working round
the clock to bring the deal to a
close.
The advisory team was put in
place last week as SABMiller plot-
ted its latest move.
It was a surprise as analysts
expected it to wait until Fosters
results next week. Much of the
activity is based around Australia,
the home of Fosters.
ADVISER:
JP MORGAN
JOHN
MUNCEY
Formed by the takeover of
Anheuser-Busch the largest
brewer in the US by rival
InBev in 2008.
Best known brands
include Budweiser,
Michelob and Stella.
One of the world's
top five consumer
products compa-
nies
Bought Tuborg breweries in
1970 and merged with
Tetley in 1992.
Runs Baltic Beverages, a key
player in the Russian market
Acquired control of
Polands Okocim Group in
2004
Bought Scottish and
Newcastle for 8bn in
2007 with Heineken.
Founded in 1895 as South
African Breweries (SAB)
Began investing in Europe in
1990 and listed in London
in 1999.
Bought Miller in 2002
to become SABMiller.
Bought major interest
in Bavaria SA in 2005
Launched hostile bif
for Fosters yesterday.
Founded in 1864
Merged with competitor
Amstel in 1968
Part acquisition of Scottish
and Newcastle made it the sec-
ond largest brewer on
revenues
Bought the
brewery division
of Mexican giant
FEMSA in 2010.
THE CONSOLIDATION OF THE BREWING INDUSTRY
BEST OF THE UKS FAMILY-OWNED BUSINESSES
Rank Brand Family Sales
1 Associated British Foods Weston 10.2bn
2 Stemcor Oppenheimer 5.1bn
3 Swire Group Swire 4.2bn
4 Laing ORourke ORourke 3.5bn
5 Arnold Clark Automobiles Clark 2.3bn
6 SCH Group Rigby 2.2bn
7 Bestway Group Pervez 2.1bn
8 JCB Bamford 2.0bn
9 Daily Mail & General Trust Vis. Rothermere 2.0bn
10 Shop Direct Group Barclay 1.9bn
ANALYSIS l Sage
p
15Aug 16Aug 12Aug 11 Aug 17Aug
242.50
245.00
247.50
250.00
242.50
255.00
257.50
260.00
245.50
17 Aug
Heineken chief
Jean-Francois
van Boxmeer
Chief executive
Graham MacKay
of SAB Miller
?
Carlsbergs
Jrgen Buhl
Rasmussen
AB InBev's CEO
Carlos Brito
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News
7 CITYA.M. 18 AUGUST 2011
TOUGH new capital requirements to
be imposed on European insurance
companies could restrict them from
investing in bank debt, a think tank
said yesterday.
The Institute of International
Finance said new Solvency II rules
being brought into force in the next
two years could prevent them from
buying large tranches of long-dated
bank bonds despite a growing need
for banks to raise fresh capital.
The willingness and ability of the
insurance sector to provide a ready
market for new capital and funding
may be quite limited, said Axel
Lehmann, chief risk officer of insurer
Zurich Financial Services and a mem-
ber of the IIF insurance working
group.
Insurers hold about 60 per cent of
all bank debt.
The IIF also objected to Solvency IIs
proposed charges, which impose
higher costs on corporate debt than
sovereign debt and could force insur-
ers to hold risky government debt
rather than company bonds.
Its certainly the case today that
certain corporate debt is in better
shape than certain sovereign debt,
said Walter Kielholz, IIF board mem-
ber and chairman of Swiss Re.
Insurers warn on capital adequacy rules
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strength; its reputation never
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reserves at a paltry price and weep.
b) Join in the merry-go-round and buy, buy, buy
(not forgetting your stop, stop, stop!)
A FORMER airfield and an Essex New
Town were among the second wave of
enterprise zones announced by the
coalition yesterday.
The sites, at Alconbury near
Huntingdon in Cambridgeshire, and
at Enterprise West Essex in Harlow, are
two of 11 in England that will benefit
from tax breaks and a relaxation of
planning rules.
Vince Cable, the business secretary,
said the zones will stimulate invest-
ment and support the future of UK
industries.
Across England, these Zones will
generate new jobs, investment in areas
that can benefit, and develop high-
tech products that will secure long-
term sustainable prosperity, said
Cable.
A research and development facility
in Kent, abandoned by Pfizer, was also
given enterprise zone status.
The new Enterprise Zone will pro-
vide a significant economic boost to
the south east, said universities and
science minister David Willetts.
The creation of more enterprise
zones, designed to create more than
30,000 jobs by 2015, comes as the gov-
ernment pledges new funding for
broadband networks of 294.8m to
England and 68.8m to Scotland.
Enterprise zones named
PHOTOGRAPHIC film-maker Eastman
Kodak saw its stock soar by almost a
quarter yesterday after its portfolio of
digital-imaging patents was valued at
up to $3bn (1.8bn) by MDB Capital
Group.
In the wake of Googles $12.5bn
patent-led acquisition of Motorola,
patents have become hot property.
The valuation means Kodaks patents
could be worth five times the rest of
the company.
Analysts say Kodak could now
become a takeover target for the likes
of Apple, Microsoft and Samsung.
Kodak technology is used in up to
85 per cent of digital cameras, includ-
ing those in smartphones, making its
patents extremely valuable.
It is seen as a prime target after
falling in value from a high of $30bn
in the days before the popularity of
digital photography to just $600m.
It is understood Kodak owns
around 1,100 digital imaging
patents dwarfed by the 17,000
owned by Motorola.
A $4.5bn auction of Nortel patents
earlier this year was won by Apple,
Microsoft, and BlackBerry-maker
RIM, with Google accusing its rivals of
ganging up to freeze it out.
Samsung has had the sale of its new
tablet PC blocked in Europe as part of
the increasingly fierce patent war.
Kodak soars
as its patents
hit 1.8bn
CITY law firm Baker & McKenzie
regained its position as the worlds
largest law firm by revenues yesterday,
reporting a record global income of
$2.27bn (1.37bn), a rise of eight per
cent from last year.
The growth in revenue was led by
strong performances across the firms
Asia Pacific and Latin America offices,
particularly in its energy and natural
resources practices.
Over the past year Baker & McKenzie
said it had opened new offices in Qatar
and Luxembourg, and increased head-
count from 3,738 to 3,805.
During the reporting period, part-
ners at the firms 400-strong London
office have been advising oil and gas
company Ensco on its 4.4bn bid to
acquire US rival Pride, and the acquisi-
tion of Barclays private equity assets
by AXA PE.
It also worked on Marchs acquisi-
tion by Itochu of Kwik Fit from PAI
Partners for 637m.
Profits per equity partner at the
firm rose to $1.2m, the first time
theyd hit such levels since 2008.
Though the firm did not provide a
regional breakdown of offices per-
formance, chairman Eduardo Leite
(pictured) said he was pleased with
progress in London, Baker &
McKenzies largest office.
We are happy with
Londons perform-
ance, said Leite,
who heads up the
executive commit-
tee. We believe as
a firm, both global-
ly and in London,
we have emerged
from the downturn
in a stronger market
position than
we went into
it.
Bakers sees
revenues hit
record levels
TODD Edgars arrival at BarCap from
JP Morgan in 2009, along with his
highly-prized team, was seen as a
coup for the bank. But just two years
later he and the team have decided
to quit to set up their own hedge
fund.
The 39-year-old trader, known for
his nerves of steel and Midas touch
when it comes to market calls is
understood to have been handed a
30m cash and shares incentive
scheme to join BarCap.
He is said to have earned JP Morgan
more than 150m in gold trading in
the months before his departure, tak-
ing a large position at the bottom of
the market and sticking with it as it
climbed to record highs.
Industry experts warn more top
bankers could quit to go it alone as
regulation becomes tighter.
BarCap star trader quits
BANKING

The chancellor unveiled the new zones yesterday Picture: Micha Theiner/City AM
BY ELIZABETH FOURNIER
LEGAL SERVICES

BY ALISON LOCK
INSURANCE

BY STEVE DINNEEN
TECHNOLOGY

ANALYSIS l Kodak
$
Jul Jun Aug
3.50
3.00
3.50
2.50
2.69
17 Aug
BY PETER EDWARDS
POLITICS

GLOBAL political paralysis will hit

markets for the rest of this year, the
head of Henderson warned yesterday
as he hailed the fund managers swift
integration of its latest acquisition.
Andrew Formica, chief executive,
said investor confidence had been
damaged by the UK riots, the
Eurozone crisis and squabbles over
raising the US debt ceiling.
Yesterday the Anglo-Australian fund
reported 86.4m in underlying profits
before tax for the first-half, almost
double the 48.5m it booked last year.
Formica told City A.M. that politicians
had shown an inability to make any
decisions.
It is not just in the Eurozone look
at the US and the Republicans and
Democrats... In the past political activ-
ity was separated from markets but
after the crisis we are much more
inter-linked it is not a pretty picture.
Formica said Henderson is not look-
ing to buy other funds before 2013, as
it concentrates on the integration of
Gartmore, which has been quicker
than that of New Star.
One-off charges associated with the
integration of Gartmore saw
Henderson post a pre-tax loss of 3.1m,
compared to a 41.6m profit a year ear-
lier. It will pay an interim dividend of
1.95p per share, up from 1.85p last
year.
Assets under management were
74.4bn. It attracted 285m net
inflows from retail investors, while
institutional investors and insurer
Phoenix withdrew about 3.1bn.
Henderson:
turmoil will
last all year
Ascot Racecourse, Saturday 15th October 2011
britishchampionsseries.com - 0870 727 1234
BY PETER EDWARDS
FUND MANAGEMENT

News
8 CITYA.M. 18 AUGUST 2011
Andrew Formica hit out at policymakers Micha Theiner/CITY A.M.
ANALYSIS l Henderson
p
16Aug 15Aug 12Aug 11 Aug 17Aug
142.50
137.50
132.50
138.50
17 Aug
Integration of Gartmore is going well
but risks of market paralysis remain
HENDERSONS figures held little
surprise, having been flagged for
months, but its warning on the
effect of the current market carnage
hit home yesterday.
Henderson hiked its performance
fee income, made great progress
integrating Gartmore, and cut its
costs. But the volatility in equities
still has the potential to hold back
future performance, it admitted.
Andrew Formica warned that
investors were shaken by the events
of the past two weeks, and said the
psychological effects of the mar-
ket turbulence would put many off
investing in the near future. That
and more anticipated volatility
make for a difficult outlook.
Peel Hunt analysts responded to
these views by ditching plans to
raise Hendersons full year earnings
forecasts by a hearty ten per cent.
The upgrade was based on its excel-
lent figures so far but they decided
on balance that the turmoil is likely
to materially prevent Henderson
from matching that performance in
the rest of the year.
This vulnerability is definitely not
unique to Henderson. But it is a
nasty reminder that market upset
stands to hurt even those who are in
a strong position.
BOTTOMLINE
Analysis by Alison Lock
TIME LINE |
HENDERSON AND GARTMORE
November 2008
Andrew Formica takes over as chief
executive of Henderson from long-serv-
ing boss Roger Yates
April 2009
Henderson acquires debt-laden rival New
Star Asset Management for 94.2m
March 2010
Officially drops the New Star name, say-
ing it remained tarnished by its trou-
bles prior to the acquisition.
June 2010
Pulls out of a deal to buy fund manage-
ment arm of banking group SunTrust for
a reported price of up to $400m
(264.5m)
September 2010
Gartmore hires industry veteran Robert
Kyprianou as a non-executive director
after seeing its share price nearly halve.
Star manager Guillaume Rambourg
resigns after allegedly breaking internal
trading rules, though he was later
cleared by the FSA
November 2010
Roger Guy, another Gartmore star man-
ager, resigns and the firm puts itself up
for sale
January 2011
Henderson announces it will buy
Gartmore in a 335m deal
August 2011
Henderson reports a doubling of first-
half fee income but fails to stem out-
flows from Gartmore.
Businesses must speak out on blight of 50p tax
WELL, everyone else has been having
their say what do you think? Is it a
morally justified punishment on
bankers who got us in this mess? Or a
tax that our economy, and raises
nothing for the Treasury? The 50p tax
debate has been loud enough over the
silly season not to get drowned out
even by the riots. The chancellor said
he wanted to scrap it; the deputy
prime minister poured cold water on
it.
All taxes are political to some
extent, but the 50p tax is unusual in
that it was introduced entirely for
political reasons. It was a bear trap set
by Gordon Brown for the
Conservatives during the election
campaign, wanting to paint Dave and
George as tax cutters for the rich. The
Tories declined the invitation to be
ensnared, but the tax that was intro-
duced as an election tactic remains in
force.
There seems to be universal consen-
sus among economists that it is eco-
nomically damaging, and all the main
business groups are opposed to it.
It discourages wealth creation and
entrepreneurialism. International
companies say it makes it difficult to
persuade their top foreign workers to
relocate to the UK. There are stories of
companies that have decided not to
make an investment here as a result
of the tax. Banks say their wealth
management divisions are seeing an
exodus of capital overseas. The
Institute for Fiscal Studies has said
that it will not generate any revenue
for the Treasury, partly as a result of
tax avoidance. It is not even much of a
tax on bankers, as 70 per cent who pay
it live outside London.
The economic case is clear, and the
chancellor has said he wants to abol-
ish it but that remains very political-
ly tricky during a time of austerity
and public sector pay freezes. It is that
rare fiscal beast a tax that is popular
with the public, with 70 per cent sup-
porting it. That means the closer to
the next election we get, the more dif-
ficult it will be for the Chancellor to
scrap it.
But corporate Britain has a role.
Businesses from around the country
concerned about the tax should
speak out about what impact it is hav-
ing on them and on the wider econ-
omy. Only that way will the 50p
debate be changed from punishment
of the City and retribution against
the rich, to encouraging growth and
aspiration.
Anthony Browne is a board member of
theCityUK
anthony@anthonybrowne.org
ANTHONY BROWNE
News
10 CITYA.M. 18 AUGUST 2011
MINING group Bumi, founded last
year by billionaire financier Nat
Rothschild as acquisition vehicle
Vallar, posted a pre-tax loss of
$243m in its maiden results, but
said production for the year was on
track.
Indonesia-focused Bumi said it
expected to produce 86m tonnes of
coal this year, up from 77m, when
posting its first interim results since
the thermal coal producer listed
under its new name in June -- giving
Indonesias politically connected
Bakrie family a foothold in London.
Bumi said thermal coal prices
should remain strong over the short
and medium term on higher
demand from Asia and Europe.
India in particular is expected to
increase its level of thermal coal
imports over the next few years with
a major planned increase in electric-
ity capacity addition, it said.
About 90 per cent of coal sales by
value were exported, while a 33 per
cent increase in coal prices out-
weighed higher production costs.
Bumi reported net debt of $393m
and cash of $467m, in what analysts
said was a solid set of results.
Rothschild joined forces with the
Bakrie Group last year as Vallar bet
heavily on Indonesia, the worlds
largest thermal coal exporter. It took
a 25 per cent stake in coal miner
Bumi Resources, Asias biggest ther-
mal coal exporter, and a 75 per cent
stake in Berau Coal Energy.
The group expects to enter the
FTSE All-Share index on 19
September.
Rothschilds Bumi posts a pre-tax
loss in first results since takeover
EURASIAN Natural Resources Corp
(ENRC) reported a surge in half year
profits yesterday, but faced criticism
after it gave little information
regarding its corporate governance
review that has been going on since
June.
The Kazakh miner reported a 33
per cent rise in pre-tax profits to
$1.6bn on revenues that increased by
32 per cent to $4bn. Net income
jumped to $1.17bn from $902m a
year earlier.
But ENRC made no reference to its
corporate governance issues, which
sparked one the citys most notori-
ous governance rows that saw sever-
al of its directors, including city
veteran Sir Richard Sykes, voted off
the board in June this year.
Chief executive Felix Vulis said the
corporate governance review was
well underway, with a report due
out in September.
We are confident that the review
will result in the right Board needed
to lead the Group through its next
growth phase, he added.
ENRC, which producer ferroalloys,
used in steelmaking, said profits
were buoyed by rising demand from
Asias car, appliance and building
industries.
The company warned however,
that the groups performance would
grow at a slower rate than in the
first half due to volatile commodity
prices.
All in all, consumption will shake
off this nervousness, but generally
the risk that any uptick will be
delayed is greater now than it was a
couple of weeks ago, chief commer-
cial officer Jim Cochrane said.
ENRC rose 23.5p, or 3.7 per cent, to
655p at close of trading.
It was a good set of numbers,
Cailey Barker at brokerage Numis
said.
The second half ... will probably
be weaker, but the business as it
stands is doing very well and once
they get the permits for Brazil they
will be into a different league.
Escalating costs from rising
wages to energy have blunted the
positive effect of robust metals
prices across the industry.
ENRC dodges governance questions as
it reports an increase in half year profits
STEEL

INDUSTRIALS

BALFOUR Beatty, the UKs largest con-

struction company, said it expects
markets to remain tough for the next
two years as government cutbacks in
the UK and US continue to weigh
down on its operations.
The group, whose projects include
the refurbishment of London
Blackfriars station and the aquatics
centre for Londons 2012 Olympic
Games, reported a meagre four per
cent rise in underlying profits to
138m in the first half of the year to
July 1 from 133m last year.
Nearly a year on from the UK gov-
ernments comprehensive spending
review, the impact of the reduction in
government spending is evident in
UK infrastructure markets and conse-
quently in our UK order book,
Balfour, led by chief executive Ian
Tyler, said in a statement.
Overall orders, however, grew by
six per cent to 15.5bn from 14.6bn a
year earlier, boosted by a good order
intake from the US.
Whilst domestic markets remain
sluggish, Balfour said it was seeking
opportunites for expansion abroad,
such as the Middle East where there
is a growing demand for infrastruc-
ture.
We expect recovery in our mar-
kets in the medium term, and we
have positioned ourselves to take
advantage of the growing demand
longer-term for infrastructure across
the globe, Tyler said.
Balfour, which operates in 80 coun-
tries and employs 50,000 people, said
it continues to focus on cost efficien-
cies, which are expected to save at
least 30m per annum by the end of
2012.
Shares closed down five per cent to
249p as the market remained uncer-
tain over recovery in the US.
UK cuts dent
Balfour gains
BY KASMIRA JEFFORD
CONSTRUCTION

ANALYST VIEWS: IS BALFOUR BEATTY ON TRACK? By Kasmira Jefford

CHRIS ALEXANDER | BNP PARIBAS

Despite solid numbers and the dividend
uplift the stock is down due to the caution con-
tained in the outlook statement. The impact of
the reduction in UK government spending is evi-
dent in the order book. While commercial mar-
kets in London are showing signs of
recovery it is too early to call a trend.

HOWARD SEYMOUR | NUMIS

Interim results contained several moving
parts relative to last year, but the underlying figures
were as expected. That said, we are downgrading
2012 estimates to account for uncertainty in the US
market especially (we are already assuming the UK
will see a profit decline) even though order
intake at present remains positive.

JONATHAN JACKSON | KILLIK & CO

Although the interim results were slightly ahead of market expectations, near-term headwinds continue to
impact trading. In the UK, the impact of the reduction in government spending is evident in infrastructure markets, while
there has been a shortage of consultancy work in the public sector.

Ian Tyler, chief

executive of Balfour
Beatty, said mar-
ket conditions will
remain tough for
now, though he
expects recovery in
the medium term
News
11 CITYA.M. 18 AUGUST 2011
SHARES of Chinese online video
company Tudou Holdings fell in
their stock market debut yesterday
after the company became one of
the few IPOs to actually price and
begin trading amid tumultuous
markets.
The Nasdaq-listed shares closed at
$25.56, or 11.9 per cent below the
float price. The IPO of 6m American
Depositary Shares priced at $29 on
Tuesday.
Tudou was the only company
scheduled to go public in the US this
week. Its IPO comes after market tur-
moil led to 10 of the 12 IPOs sched-
uled for last week being pulled.
Tudou manages
to float but its
shares plummet
SOUTH Korea announced long-term
agreements yesterday worth $84bn
(50.8bn) with Royal Dutch Shell and
Total to buy gas from liquefied natural
gas projects in Australia.
Asias largest economies are compet-
ing for Australias rapidly growing sup-
plies of LNG to secure the energy to
fuel expansion.
South Korea, the worlds second-
largest buyer of LNG after Japan, needs
the deals to replace supply from
Indonesia, Malaysia and Brunei under
agreements due to expire between
2013 and 2015.
State-run Korea Gas (KOGAS) will
import a combined 5.64m tonnes per
annum (mtpa) of LNG from 2013 to
2035 under the agreements, the econ-
omy ministry said in a statement.
The volume is equivalent to about a
fifth of the country s LNG imports in
2010, and the deals are due to be
signed next month. Worth 90 trillion
won over their lifetime,the deals are
the nations largest ever long-term gas
supply agreements.
KOGAS, the worlds largest corpo-
rate buyer of LNG, will also acquire a
10 per cent stake with an additional
investment of $1.5bn in Shells fully-
owned Prelude project in Australia,
the ministry said.
Analysts had expected KOGAS to
buy LNG from Prelude as Samsung
Heavy Industries is building the giant
vessel in South Korea to process and
liquefy gas from the project.
South Korea strikes gas
deals with Shell and Total
UTILITIES

THE number of passengers travelling

with Flybe increased in the second
quarter of the year, the airline said
yesterday.
In the three months to 30 June, the
carrier saw passenger numbers rise by
7.7 per cent to 1.98m.
In a tough economic climate Flybe
also saw revenue increase by 8.3 per
cent to 160.4m. Revenue per seat also
increased by 4.9 per cent to 48.09.
The group also reported an uptick
in punctuality, with 87.1 per cent of
flights landing on time during April,
May and June up from the 85.4 per
cent recorded in the first quarter of
2010.
But Flybes revenues from aviation
support operations fell 29.7 per cent
on last year to 9.8m. The support divi-
sion, formed as part of a reshuffle of
the business in July, is responsible for
maintenance and the firms training
academy.
Flybe said it has hedged 79 per cent
of its fuel costs for the next two years
at $851 per tonne.
Jim French, chairman and chief
executive of the Exeter based carrier,
said: This is a satisfactory trading and
operational performance, achieved
against a continuing backdrop of high
fuel costs and challenging economic
conditions.
Though at an early stage of the
year and with uncertain macro-eco-
nomic condition the board maintains
its expectations for the full year.
Flybe passenger traffic
rise fuels lift in revenues
AVIATION

CONSTRUCTION

CLS Holdings, the international

property investment company, saw
profits jump by a third in the first
half of the year, benefitting from
investments spread across four
European property markets and
three currencies.
The firm, which owns properties
in London, Germany, Sweden and
France, said pre-tax profits rose by
32 per cent to 37.1m in the first
half of the year from 28.1m in 2010.
Its net asset value also rose by 10
per cent.
In London, CLS invests primarily
in office buildings in areas such as
Vauxhall, where it has recently sub-
mitted planning permission to build
a hotel and student accommodation
development, Spring Mews.
The group, which has 228.8m of
cash aside for investments, said it
was pursuing a number of attrac-
tive opportunities in Europe, caus-
ing shares to rise by 9.4 per cent
yesterday, closing at 627p.
Income and net
asset values up
at CLS Holdings
PROPERTY

DENMARKS AP Moller-Maersk saw its

half-year profits rise eight per cent,
beating analyst forecasts, despite a
steep fall in profits at its core ship-
ping division.
The group, whose Maersk Line is
the worlds biggest container shipper
and a barometer of global trade, post-
ed pre-tax profits of $6.1bn (3.7bn),
up from $4.82bn a year ago.
Its container activities, however,
saw net profits fall 68 per cent to
$393m as demand for container ship-
ping slowed, as the global economic
slowdown hit consumer demand.
The growing demand for contain-
er transport continued throughout
the second quarter, but at a slower
pace, AP Moller-Maersk said in a
statement, adding global fleet expan-
sion outpaced demand growth, hit-
ting freight rates, which were down
three per cent on the previous year.
Maersks oil and gas unit, the
Nordic regions second-largest explor-
er after Statoil, contributed to the
biggest proportion of profits, with
first-half net income rising 23 per
cent to $1.2bn, helped by oil prices
that were around 44 per cent higher
on average than in the same period
last year.
Maersks shares were up 4.32 per
cent, closing at 36,200 Danish Krone.
Maersk sees
slow growth
BY KASMIRA JEFFORD
TRANSPORT

ANALYSIS l Maersk 2011 first quarter results

TANKERS AND OTHER SHIPPING:
Profit: $250m
($171m H1 2010)
Pre-tax profits of
$6.103bn
( 27 per cent)
Revenue:
$29.927bn
9 per cent
Average freight rate
per 40 foot container:
3 per cent on
previous year
TERMINAL DIVISION:
Profit: $304m
($528m H1 2010)
OIL & GAS DIVISION:
Profit: $1.2bn
($909m H1 2010)
OIL OIL OIL OIL OIL OIL OIL OIL OIL
CONTAINER DIVISION:
Profit: $393m
($1.22bn H1 2010)
ANALYSIS l AP Moeller Maersk
DKK
16Aug 15Aug 12Aug 11 Aug 17Aug
38,000
36,000
34,000
32,000
36,200.00
17 Aug
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At a glance, clients have access to:
TAXI TYCOON RETURNS
FOOT MESSENGERS TO
SQUARE MILE STREETS
HAS THE City returned to 1975? Foot
messengers, once a familiar sight on
the streets of the Square Mile before
computers killed them off, returned
this week to deliver documents by
hand as the most environmentally
friendly couriers in town.
Harbottle and Lewis, SJD
Accountancy and Maxxim
Consulting all signed up for the
service, which was introduced by
Britains best-known taxi driver
John Griffin, the chairman of
Addison Lee, as a partnership with
sportswear brand ASICS.
Initially introduced as a trial,
demand for the running couriers
has been so strong that Griffin is
considering making them a perma-
nent fixture in the 200m business
he founded on April Fools Day in
1975. There may be a whole new
market for this service, he told The
Capitalist. The City is very dense, so
it makes sense.
Addison Lee is on an upwards spi-
ral, continued the taxi tycoon, with
revenue up 22 per cent for the year
to date, lifted by the new iPhone app
for mobile bookings the single
biggest contributor to revenue
upturn in the companys history.
The days of standing in the street
waving your hand to get a cab are
over, declared Griffin.
So there are no plans to launch
an IPO for the private company, as
Griffin just doesnt need the cash.
Not to mention having to answer to
pesky investors demanding to know
what he is up to next. We have no
plans to float, he confirmed. It
would kill me to have to answer to
shareholders.
LOSING BATTLE
MEANWHILE, Addisons Lees legal
battle to win the right to use bus
lanes yesterday came to a disappoint-
ing conclusion.
Griffin has been on tenter-
hooks for weeks to hear
whether he would secure
the ruling that would
persuade the half of the
FTSE 100 currently with-
out a corporate Addison
Lee account to sign up
to his services.
But the courts yester-
day refused the firms
appeal, in a judgment
that left the minicab
mogul fuming.
We are only seek-
ing fairness, said Griffin, who plans
to seek a judicial review. We demand
the right to trade on a level playing
field with our competitors.
SLOW AND STEADY
REPORTS have been surfacing in
recent weeks that the Bank of
England is close to announcing
where it will house the staff of the
Prudential Regulation Authority, the
new body that will emerge from the
ashes of the disbanded FSA.
In reality, any revelation is a long
way off, said a patient Bank of
England mole, who outlined the
many layers of red tape that must be
dealt with before the BoE can com-
mit to parting with the 20m cash
earmarked for the office move.
The Capitalist nodded off some-
where around the Pre-Legislative
Scrutiny Committee an earnest
mix of MPs and Lords who are work-
ing around the clock to meet the
very tight deadline of 1 December
to come up with a report for the
government.
But the main point is clear. No
lease will be signed until February
2012 at the earliest, so readers keen to
hear whether the former Nomura
building at King Edward Street or JP
Morgans old HQ at 20 Moorgate will
house the PRAs estimated 1,000
employees will have to wait. If we
sign a lease, it will be at the time of
second reading of the Bill in
Parliament, said the source.
END OF AN ERA
THE Etrusca Restaurant Group,
owner of Square Mile restaurants
including Taberna Etrusca and
Caravaggio in Leadenhall Market,
prides itself on being at the fore-
front of modern Italian cuisine. But
its lead is slipping after bailiffs
Ilchester Estates repossessed its Bow
Lane restaurant Zuccato City and
changed the locks.
Diners intrigued to see what could
have been can visit the unamended
listing for the restaurant on ERGs
website where, in an unfortunate
turn of phrase given the circum-
stances, it boasts of Zuccatos dcor
of large images of an era gone by.
MATCH MAKER
CLIMBING the career ladder by work-
ing long hours can get lonely
empathises former investment
banker Salima Manji (pictured
below), who set up the London
Dinner Club to help City workers
meet like-minded single profession-
als in upmarket surroundings.
Many people dont have the
time to meet people as they
have extremely demand-
ing jobs, said the ex-
Credit Suisse and JP
Morgan employee.
This leaves them
wondering where to
go to meet people.
Look no further
than the next inti-
mate soire at
Awana in Sloane
Square on 15
September. See
www.londondin-
nerclub.org
Fleet of foot:
Addison Lees
Running Couriers
beat the traffic
30
a month
Only
Busmans holiday: John Griffin
13
The Capitalist
CITYA.M. 18 AUGUST 2011 EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
News
15 CITYA.M. 18 AUGUST 2011
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www.cityam.com
CAR dealer and parts supplier
Lookers, which was in offer talks with
a consortium led by investor Jack
Petchey recently, said it was no longer
in discussions with anyone, but was
still open to selling the group.
The update came as the company
posted a pre-tax profit of 22.6m in
the half year to June amid a tough
economy.
That was the same as the compara-
ble period last year.
Revenue rose 1.4 per cent to 1bn,
helped by strong growth in its parts
division. Last month the company,
which owns Scottish brand Taggarts
and the Charles Hurst brand in
Northern Ireland, had rejected a
revised offer from Petcheys consor-
tium.
We opened talks with the consor-
tium when they revised their pricing.
We didnt have the support of our
shareholder base, who valued the
company at a higher figure than the
70 pence that was offered, chief exec-
utive Peter Jones said.
In May, Petcheys Trefick vehicle,
along with Moor Park Capital
Partners, a real estate private equity
investment advisory firm, and Brett
Palos, a venture capitalist and real
estate investor, was refused access to
Lookers books after they made a
joint offer approach for the company.
Trefick owns a 17.3 per cent stake
in Lookers, which is currently valued
at nearly 200m.
The consortium obviously moved
away and during the offer period, it
didnt stimulate any interest from
any other buyers and now we are not
in talks at all, Jones said.
We dont expect any material
changes to full-year consensus fore-
casts [of 35.5m] at this stage,
Espirito Santo Investment Bank said.
A THIRD of car dealer Pendragons
75.2m rights issue was left on the
books of underwriters as the turbu-
lence in the markets took its toll.
The rights issue was part of a finan-
cial restructuring led by chief execu-
tive Trevor Finn.
When Pendragon announced the
nine-for-eight issue of new shares at
10p a share in mid-July, its share price
stood at 21.8p. But in the month since
its share price has more than halved.
At one stage yesterday they were trad-
ing at 10.4p as the underwriters
scrambled to place some 243m
unsold shares in the market.
Existing shareholders took up 67.7
per cent of the issue.
The underwriters RBS Hoare
Govett, BarCap and Arden Partners
were paid fees of 2.5 per cent, or
almost 2m, to cover the issue. That
ensures that Pendragon receives the
full proceeds, whether or not they
place the unsold shares.
Pendragon underwriters
hit as shares left unsold
US RETAILER Target reported a bigger-
than-expected rise in quarterly profit
and forecast a more profitable
year than analysts were antic-
ipating yesterday, as its
credit card business con-
tinued to grow and sales
picked up as the summer
progressed.
Target has more than
1,760 US stores and is get-
ting ready to open stores in
Canada.
Target has been adding groceries to
more of its stores, a move that boosts
sales but also pressures profitability,
as food carries lower margins
than merchandise such as
clothing. However, its gross
margins fell less than
expected to 31.6 per cent
in the quarter.
Target earned $704m
(425m) in the second
quarter, up from $679m a
year earlier.
Target beats forecasts as
its summer sales perk up
RETAIL

AEA TECHNOLOGY Group continues

to be cautious about market condi-
tions in the UK and Europe but over-
all remains confident of its business
position.
AEA an AIM-listed technical,
energy and sustainability consultan-
cy said yesterday the actions taken
to reduce its cost base in the last year
combined with additional reduc-
tions this year are helping to under-
pin its bottom line.
In a management statement the
company said: Encouragingly there
is a larger pipeline of opportunities
compared to this time last year and
as a result the number of bids being
made by AEA in Europe has
increased.
The firm said its bid pipeline stood
at $1.2bn (725m) at the end of June,
with a number of large contracts
with the US government on track
despite public spending constraints
across the pond.
AEA Technology confident of progress
despite gloomy outlook on UK growth
ENERGY

CONSUMER goods group Unilever

expects to see three-quarters of its
turnover from emerging markets by
2020 as heavy investment in these
fast-growing regions and sluggish
growth elsewhere take effect.
Europe and the US will be, for
the next 10 years, low-growth terri-
tories, Im afraid. So, soon we will
have 75 per cent of our turnover in
emerging markets ... 70-75 per cent
by the end of decade, chief execu-
tive Paul Polman said in an inter-
view.
This is also where the 2bn more
people will be born in the next 40
years, and obviously where most of
the world growth is going to be.
Unilever and its brands like
Knorr, Hellmanns, Dove and
Sunsilk already derive a higher pro-
portion of sales in emerging mar-
kets now -- 55 per cent -- than key
rivals Procter & Gamble and Nestle.
The Anglo-Dutch groups growth
is driven by its big presence in Asia,
Africa and Latin America, with
Brazil, India, China and Turkey
among its fastest growing markets.
So we are by any standards the
emerging market company. We are
growing by 10 per cent or more now
consistently in the emerging mar-
kets, and thats a very healthy
growth, said Polman.
Unilever invests in new areas
BY HARRY BANKS
CONSUMER

Lookers sees
flat profit as
it eyes a sale
BY JOHN DUNNE
AUTOMOTIVE

BY HARRY BANKS
AUTOMOTIVE

NEWS | IN BRIEF
Anglo Irish cuts 350 jobs as part of restructuring
Nationalised lender Anglo Irish Bank yesterday said it will cut
up to 350 jobs by the end of next year, 130 of which will
come from its workforce in Ireland. The Irish Bank Officials
Association, a union for finance workers, will today start talks
with the failed bank over how cuts will be handled.
Irish Nationwide loses chief exec after takeover
The chief executive of Irish Nationwide building society is
leaving the defunct lender following its takeover by Anglo
Irish Bank, management at Anglo told staff yesterday. Gerry
McGinn took charge of the failed lender two years ago. The
bank is being wound down, together with Anglo, as part of
the country's bailout.
Xchanging scores contract with BAE Systems
Struggling tech firm Xchanging yesterday boosted its flagging
share price by 9.5 per cent with news of a $150m (90.6m)
contract to procure some back-office services for BAE
Systems over the next seven years.
ANALYSIS l Unilever

16Aug 15Aug 12Aug 11 Aug 17Aug

23.50
22.50
21.50
23.55
17 Aug
ANALYSIS l Lookers
p
16Aug 15Aug 12Aug 11 Aug 17Aug
53
51
49
47
52.00
17 Aug
Vestas full order
book impresses
DANISH wind turbine maker Vestas
wrong-footed investors yesterday,
announcing a bulging order book that
contrasted with solar power Evergreen
Solars bankruptcy filing two days ago.
Despite global uncertainty, we feel
that Vestas is in a good position to get the
order intake that we have outlined, chief
executive Ditlev Engel said, referring to a
forecast for up to 8,000 MW of orders this
year.
Vestas stood by previous guidance for
full-year revenue of 7bn (6.12m) and a
margin of seven per cent. It said earnings
before interest and tax reached 77m in
the three months through June, against a
180m loss a year before.
The firms shares rose as much as 23
per cent yesterday.
ENERGY

BLINKX, the worlds biggest video

search website, added mountain bik-
ing, heavy metal music and gaming
to its burgeoning content portfolio
yesterday as it penned a partnership
with magazine group Future
Publishing.
Future, which produces magazines
such as Metal Hammer and Xbox
World 360, will make all of its 100 or
so digital magazines available on
Blinkx on an advertising revenue
share basis.
Blinkx will get the benefits of
Futures viewer base of more than
25m unique monthly users, and
160m page impressions, as it sells
advertising around the video player.
Blinkx founder and chief executive
Suranga Chandratillake said the part-
nership gave it access to Futures
wide variety of high-quality special
interest content.
Futures UK chief executive Mark
Wood said video content was a key
strategic driver for our business mov-
ing forward. Blinkxs technology and
search abilities would allow fans
everywhere to easily discover and
watch relevant video content online,
he added.
The partnership with Future is the
latest catalyst in a high-speed growth
path for Blinkx, which was spun out
of Cambridge-based intelligent soft-
ware developer Autonomy in 2007.
It has added more than 720 con-
tent partnerships so far, with recent
additions including Fashion TV and
news aggregator Newslook. It says it
has indexed more than 35m hours of
video and audio content to date.
Blinkx raised 25m in a London
IPO in 2007 and is now valued at
about 400m, as it has proved a hit
with consumers.
Its technology protected by more
than 100 patents uses algorithms to
detect patterns in content such as
images and sounds.
GERMANYS largest builder
Hochtief beat forecasts for second-
quarter earnings, thanks to a rise
in new orders, and said it was
pleased with the progress in sell-
ing its airports division.
The company also confirmed its
full-year outlook for 2011-2013, and
said it expected its troubled
Australian unit Leighton to return
to strong performance soon.
The group added that it was
encouraged with the progress of
the sale of its airports business,
and expected the deal to be com-
pleted by the end of the year.
We are very satisfied with the
course of the process so far, chief
executive Frank Stieler said in a
statement, declining to comment
further on the bids.
The group withdrew a comment
by Stieler in the press statement, in
which he said the bids were signif-
icantly higher than the figures
launched on tactical grounds in
the media.
HNA Group, parent of Chinese
airline Hainan Airlines, has said it
is bidding, while sources have said
Vinci and Fraport have also put in
offers, with the bids seen at over
1bn (604m).
Hochtief posted second-quarter
earnings before tax of 10.2m.
It had been expected to report a
pre-tax loss of 7.46m, according to
the average estimate of eight banks
and brokerages.
Hochtief beats forecasts with a jump
in orders and airport disposal progress
BLOOMBERG has won a significant
court victory after a US judge denied
a class action discrimination suit
brought against the financial news
and media services company by preg-
nant women.
The privately-held New York-based
Bloomberg, founded by New York City
Mayor Michael Bloomberg, was sued
in Manhattan federal court in 2007 by
the Equal Opportunity Commission
(EEOC) on behalf of pregnant women
employees who accused the company
of engaging in a pattern of discrimi-
nation against them in pay and
responsibilities.
District Judge Loretta Preska, in
throwing out the suit, said the evi-
dence presented in this case is insuffi-
cient to demonstrate that
discrimination was Bloombergs stan-
dard operating procedure, even if
there were several isolated instances
of individual discrimination.
Preskas ruling made publicly avail-
able yesterday.
Bloomberg wins case
against pregnant women
MEDIA

MOTOROLA director William R

Hambrecht (pictured right) has quit
the company just two days after
Google made a shock $12.5bn
(7.6bn) bid for the phonemaker.
Hambrecht had been installed on
the board by activist investor Carl
Icahn, who had campaigned for the
firm to be split in half, which came
to fruition in December.
The 76-year-old investment banker
said: I am delighted with the trans-
action we entered into with Google
and I look forward to seeing the ben-
efits and new opportunities this
partnership creates.
Motorola boss Sanjay Jha did not
give a reason for Hambrechts
departure, but paid tribute to the
director in a statement: He
played an instrumental role in the
separation of Motorola into
two independent publicly-
traded companies, as well as
in our recent milestone
transaction with Google.
The departure leaves
Motorola with just nine
directors.
Google says it will run
Motorola as a separate
entity following its acquisition,
which is still pending regulato-
ry approval.
Googles stock dropped
about one per cent yesterday,
taking its total loss since
announcing the bid on
Monday to more
than six per cent.
M o t o r o l a
Mobilitys New
York-listed shares
ticked up slightly
yesterday, having
surged 50 per cent
on news of the bid
on Monday.
Motorola director quits firm
BY STEVE DINNEEN
MEDIA

Blinkx to host
Futures web
magazines
BY ALISON LOCK
TECHNOLOGY

BY HARRY BANKS
CONSTRUCTION

News
16 CITYA.M. 18 AUGUST 2011
Chief executive Stevie Spring is ramping up Futures online presence Picture: REX
NEWS | IN BRIEF
Eaton Vance attracts less cash
Asset manager Eaton Vance Corp said
quarterly profit jumped 63 per cent, but
net inflows of cash from investors
declined amid volatile markets. Like
other asset managers whose prospects
are closely tied to market indices, Eaton
Vance investments have been whip-
sawed by recent market shocks. The
concern is that volatility will make
investors more reluctant to bet on funds
in the future. The firm reported a profit
of $68.1m for the three months to the
end of July, up from $41.8m a year earli-
er. It reported net inflows of $1.9bn to
its long-term funds and separate
accounts, down from $2.9bn in the pre-
vious quarter and $4.8bn a year earlier.
Sweden can seize Saab assets
Swedens debt enforcement agency is
preparing to seize assets of troubled car
maker Saab in an attempt to recover at
least 4m Swedish crowns owed to parts
suppliers. The agency can now seize
assets, including any cash in Saab's bank
accounts. Car production at the cash-
strapped company, rescued in early 2010
by Netherlands-based Swedish
Automobile, ground to a standstill in April
because suppliers who had not been paid
refused to deliver components.
Pearson in line for sale windfall
Publisher Pearson yesterday unveiled a
$115m (69.4m) windfall from the sale of
its government solutions business in
2006. Pearson, owner of the Financial
Times and book brand Penguin, sold the
US-based government solutions arm to
private equity group Veritas five years
ago for $600m but retained an equity
stake under the name Vangent. Now that
Veritas has sold the business on to
General Dynamics Corp, Pearson stands
to gain $115m before tax once the deal
closes. IT outsourcing group General
Dynamics has agreed a cash deal worth
$960m for the assets.
ANALYSIS l Blinkx PLC
p
11 Aug 12Aug 15Aug 16Aug 17Aug
102.50
100.00
97.50
95.00
98.00
17 Aug
SCANDINAVIAN airline SAS yesterday
beat forecasts as it swung to a second-
quarter pre-tax profit yesterday and
said it was on track for the full year,
lifting its shares up 21 per cent.
I stand by the outlook we gave in
the first quarter that we will be in the
black for the whole of 2011, chief
executive Rickard Gustafson told
reporters.
SAS has long been struggling with
high costs and fierce competition
from no-frills rivals such as
Norwegian Air, while the global
downturn and soaring jet fuel prices
have added to its troubles.
But the latest in a long line of cost-
cutting programmes should drag the
airline which has only made a prof-
it in two of the past eight years back
into positive territory in 2011.
The airline, half-owned by
Denmark, Norway and Sweden, made
a pre-tax profit of 729m crowns
(69.4m), compared with a loss of
600m crowns in the 2010 period.
SAS swings into profit as
cost cuts start to pay off
TRANSPORT

News
17 CITYA.M. 18 AUGUST 2011
Ashcourt Rowan
Buzz West, Jonathan Polin and Steve
Haines have been appointed as non
executive chairman, group chief execu-
tive and non executive director respec-
tively of the wealth management group.
West and Haines join with immediate
effect; Polin, formerly an executive
director at Ignis Asset Management,
will start on 2 September.
Ernst & Young
The accountancy group has hired Tim
Cooper as a director in the Manchester
office to boost its nuclear specialism.
Cooper, who has more than 20 years
experience in the nuclear sector, joins
from Babcock International.
BT Wholesale
Nigel Stagg has been appointed as
chief executive of BT Wholesale,
effective from 1 September, in a pro-
motion from his current role of man-
aging director of BT Business. Stagg
takes over from Sally Davies, who is
stepping down for personal reasons
after leading BT Wholesale for the
past four years.
Audi UK
Alison Jones has been appointed as
head of operations for Audi UK. Jones
joins from Volkswagen Group
Customer Services, where she was
most recently head of contact strategy
for brands including Audi and Skoda.
Barclays Wealth
The wealth manager has hired Anne
Luke as managing director, head of
client solutions for Asia to extend the
focus on ultra high net worth clients
in the region. Luke, who will be based
in Singapore, spent a large part of
her 20-year career at UBS, where she
led wealth management solutions for
ultra high net worth clients.
Barings
Baring Asset Management has hired
Ajay Argal as head of Indian equities,
based in Hong Kong. Argal moves from
Birla Sunlife AMC, where he was head
of offshore equities.
Skagen Funds
The specialist asset manager has
appointed Alain Moyeuvre as UK com-
pliance officer. Moyeuvre joins from
Aviva Investors, where he was senior
compliance manager.
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
Tech stocks drop on
weak Dell results
T
ECH shares fell yesterday after
Dells disappointing sales out-
look fanned worries weak eco-
nomic growth will hurt
earnings in the third quarter.
The Dow and S&P indices ended lit-
tle changed in an up-and-down ses-
sion where investors sold growth
sectors in favor of defensive shares
like telecoms and utilities.
Computer maker Dell was the
S&Ps worst performer, losing 10 per
cent to $14.20 after cautious com-
ments on spending on technology by
the government sector.
Hewlett-Packard was also hit,
falling 3.7 per cent to $31.39 and
weighing on the Dow as investors also
worried business spending could
decline in coming quarters.
You dont usually see tech down so
sharply while the rest of the market is
down less, which shows that the lat-
est earnings have created a lot of con-
cerns, said Nicholas Colas, chief
market strategist at the ConvergEx
Group in New York.
In after-hours action by tech com-
panies, NetApp slumped 14.5 per cent
to $35.60 after its revenue missed
expectations while JDS Uniphase lost
3.2 per cent to $11.32 following a
weak first-quarter outlook.
Retailers slipped following a weak
report from Abercrombie & Fitch,
despite good news fromTarget. With
94 per cent of S&P companies report-
ing earnings, 72 per cent have beaten
expectations.
The Dow Jones industrial average
was up 4.28 points, or 0.04 per cent,
at 11,410.21. The Standard & Poors
500 Index was up 1.12 points, or
0.09 per cent, at 1,193.88. The
Nasdaq Composite Index was down
11.97 points, or 0.47 per cent, at
2,511.48.
Concerns that the US economy
may be headed for another recession
and that Europe may be unable to
stem its financial troubles have hit
the market, with a strong earnings
season one of the few bright spots for
traders, though they often have not
been enough to offset macroeconom-
ic woes.
So with technology concerns, and
then more than our fair share of
recession concerns and continued
concerns about Europe, were in a
real three strikes, youre out situa-
tion today with no reason to buy,
Colas said.
Both Abercrombie & Fitch and
Deere & Co slumped on disappointing
margins news. Abercrombie also
raised concerns about the consumer
response to higher prices going into
the crucial back-to-school shopping
season.
W
eaker financial stocks led
British shares lower yeter-
day as the outcome of a
Franco-German summit left
investors still anxious about the
Eurozone debt crisis and concerned
about the impact of plans for a new
tax on the industry.
The FTSE 100 index closed down 0.5
per cent at 5,331.60, having at one
stage dropped back below the psycho-
logically important 5,300 level, snap-
ping a four-session winning streak
which saw the index jump around
seven per cent.
Weakness in banks was the biggest
drag on the blue chips, with Barclays
the worst off in the sector, down 4.2
per cent as concerns about their expo-
sure to European debt continued
after the meeting between French
president Nicolas Sarkozy and
German chancellor Angela Merkel.
It seems back to business as usual
as the banks took a knock today on
euro zone debt concerns, although at
least things are a little calmer than
last week's roller coaster ride, said
Mic Mills, head of electronic trading
at ETX Capital.
Merkel and Sarkozys meeting on
Tuesday failed to provide any hoped
for moves to alleviate the Eurozone
debt crisis, such as creating a com-
mon euro zone bond, or increasing
the size of the European Financial
Stability Facility.
They did, however, unveil a plan to
explore a financial transaction tax
(FTT), which had a further negative
impact on sentiment for financial
stocks.
Interdealer brokers ICAP and
Tullett Prebon were also among the
top fallers on the FTSE 100 and FTSE
250 indexes respectively, down 3.7 per
cent and 4.2 per cent, while mid cap
spread-betting firm IG Group lost 3.7
per cent.
One of the intended purposes of
the financial transactions tax would
be reduce trading volumes. This
would be negative for businesses
which thrive on the flow of financial
transactions, such as IG, Collins
Stewart said in a note.
Strength in specialty metals and
miners put a prop under the blue
chips in London, with the sector sup-
ported by firmer copper prices on
buying interest from Asia and as the
dollar weakened.
Eurasian Natural Resources stood
out, ahead 3.7 per cent after it posted
first-half profit at the top end of
expectations.
Gold also edged higher with safe-
haven demand for bullion supported
by uncertainty surrounding the euro
zone debt situation, so buyers came
in for precious metals miners.
Fresnillo was the top blue chip
riser, up 5.6 per cent despite trading
ex-dividend.
Overall ex-dividend factors
knocked 9.48 points off the FTSE 100
index yesterday, with Anglo
American, British American Tobacco,
Hammerson, HSBC, Pearson,
Prudential and Standard Life all also
losing their payout attractions.
Domestic macroeconomic data
heightened investor unease.
The UK jobless rate rose unexpect-
edly to 7.9 per cent, compared with
forecasts for an unchanged reading of
7.7 per cent, while British jobless
claims jumped by the most in over
two years.
Whilst this is poor, and may serve a
political purpose, we are more con-
cerned by the sharp drop in the num-
ber of hours worked, down one per
cent year-on-year, despite the numbers
employed rising one per cent over the
same period, said Gerard Lane, equity
strategist at Shore Capital.
Falling financial stocks drag
FTSE lower amid euro fears
THELONDON
REPORT
THENEW YORK
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Diageo
1,300
1,200
Jun Jul Aug
p
1,183.00
17 Aug
DIAGEO
UBS rates the drinks company buy with a target price of 1,425p. The broker
believes Diageo will ramp up advertising spending in the medium-term, help-
ing prop up double-digit sales growth in new markets to minimie the effects
of an expected seven per cent fall in Europe. UBS also expects Diageo to use
its strong balance sheet to either make more acquisitions or return cash to
investors within the next year.
ANALYSIS l Firstgroup
370
350
330
310
Jun Jul Aug
p
350.40
17 Aug
FIRSTGROUP
Nomura rates the train group neutral but has revised its target price down
to 345p, from 363p. The broker thinks the expiry of the firms Great Western
and Capital Connect franchises means profitability will fall between next year
and 2015, and Nomura has trimmed its forecasts by two to three per cent,
assuming no new contract wins. In the short term, Nomura reckons stabilis-
ing the firms US schoolbus business is crucial to the group as a whole.
ANALYSIS l Standard Life
210
190
170
Jun Jul Aug
p
202.00
17 Aug
STANDARD LIFE
Morgan Stanley retains the savings and investment firms underweight rat-
ing, with a target price of 183p. The broker believes the firms surprisingly
strong first half earnings were bolstered by lower quality assets and risky
moves. Morgan Stanley is concerned about UK profitability, particularly in the
self-invested personal pensions business, and prefers rival Prudential as a play
on growth in insurance.
ANALYSIS l FTSE
23May 1 Jul 12Jun 21 Jul 10Aug
6,200
5,800
5,400
5,000
5,331.60
17 Aug
Stephenson Harwood
The law firm has strengthened its projects
team by hiring Jonathan Cripps and Rebecca
Carter (pictured) as partners. Cripps and
Carter join from Eversheds, where they acted
for public and private sector infrastucture
clients including the Ministry of Justice, the
North London Waste Authority and the Office
of Government Commerce. The firm has also
recently hired four new associates, all also
from Eversheds: Jennifer Westall, William
Lewis, Phil Harris and Ian Pumfrey.
Wealth Management| AIM
18 CITYA.M. 18 AUGUST 2011
Other Aim-listed companies to consider
J
ANUARY 2012 marks the start
of a whole new commercial
phase for the internet. And
Peter Dengate Thrush (pictured,
right) should know as the former
chairman of the board of Icann, the
body responsible for the internets
top-level domain name management,
he oversaw the introduction of the
reforms that are about to upend the
world of web addresses. From 12
January next year until 12 April,
applications will be open for the
rights to generic top-level domains
(gTLDs): instead of being limited to
.com and a handful of others, appli-
cants will pay $185,000 in the hope of
claiming anything from .adidas to
.zoo. Brands and geographic names
will be reserved for their natural own-
ers, but almost everything else will be
available. In two years time, the
results will be visible to internet
users. And Thrush presents an
intriguing opportunity for investors
to gain exposure to this momentous
transition.
AIMING HIGH
In July, Thrush brought his expertise
to an Aim-listed company, when he
was appointed as executive chairman
to the board of Top Level Domain
Holdings (TLDH). TLDH is one of only
eight to ten companies around the
world specialising in this area, mak-
ing strategic investments in the hope
of obtaining and running certain
gTLDs; TLDH also has an operating
business, Minds and Machines, that
runs new gTLDs on behalf of others.
HIGH-VALUE MEANING
No one knows exactly how the com-
ing change will play out, but Anthony
van Couvering, chief executive of
TLDH, argues youll start to see
meaning inhabit those last letters
after the dot in a way that it doesnt
today. TLDH is interested in acquir-
ing certain extensions, such as .eco,
that it sees as offering high-value
meaning, and it will also be manag-
ing new domain names on behalf of
others, such as .mumbai.
Not everyone is happy about the
new regime. Esther Dyson, the found-
ing chairwoman of Icann, described
the changes as useless in a recent
interview with the technology media
website TechCrunch. Thrush dis-
agrees: Well look back on the days
when there were just a few top-level
domains and wonder why, because
the internet will be a much more
colourful, vibrant, expressive, descrip-
tive kind of place.
Certainly, big companies will find
it hard to ignore the pressure to own
.yourbrandhere, while major cities
worldwide may be attracted by the
chance to own the equivalent of .lon-
don, which could potentially be as
much a new revenue stream as a
branding exercise. Its going to shake
up the previous business models,
says Thrush.
TLDH may present an opportunity
to get exposure to the next internet
boom without entering the applica-
tion process directly. It is certainly
ambitious. We plan to be a major
player, says van Couvering. Thrush
offers some figures to put that in con-
text: The current domain name mar-
ket is worth about $12bn. We think it
will expand by some $3-4bn with the
new gTLDs. And our ambition is to
own 20-30 per cent of that. The busi-
ness model is in its infancy, with a
market cap of 28.22m and pre-tax
losses of 573,000 in the six months
to April 2011, but this would-be dot-
everything may be worth watching.
The man from
Icann is after
new net gains
An Aim-listed domain name company
is betting on change, writes Marc Sidwell
You will start to see
meaning inhabit those
last letters after the dot
in a way it doesnt now.
O
N THE difference between
buying small as opposed to
large company stocks, invest-
ment guru Jim Slater notably
remarked: Elephants dont gallop.
While true, the worry for many
investors is that instead of lasting 70
years, many Aim-listed companies
have a life expectancy closer to that
of the mayfly. However, not all Aim
companies are born equal and fol-
lowing the fall across the index,
opportunities for stock pickers are
emerging.
Richard Gill of t1ps Investment
Management thinks this makes Aim
a stock pickers paradise, as indis-
criminate selling leaves a number of
excellent buying opportunities. Ross
Jones, also of t1ps Investment
Management, advises:
Indiscriminately buying the index
is in our view a poor strategy when
looking to gain exposure to smaller
companies. Instead, he suggests bot-
tom up fundamental analysis.
UNDER THE RADAR
He says: A core advantage when
investing in Aim is that invariably
the companies are flying well below
the radar of large funds and profes-
sional analysts, so astute investors
who do their own homework have
the opportunity to find gems before
the rest of the market realises.
Director at Smith & Williamson
Investment Management David
Amphlett-Lewis advises that when it
comes to picking Aim stocks, rela-
t i v e
size in market capi-
talisation terms, positive cash
flow, dividend paying, and net cash
on the balance sheet often demon-
strate that a business has progressed
through its initial growth phase and
having established itself it is more
likely to be a survivor. Although you
will need to keep your wits about
you. He warns history has proven
this is not always enough.
SKYWEST LOOKS UP
Jones likes the Australian regional
airline Skywest, which has recently
signed a deal with Virgin Australia.
H e
also recommends film producer
Intandem, which he says has
announced a series of good news.
ONE FOR THE GOLDBUGS
Golds trend has been the friend of
many investors since the aftermath
of the financial crash. As many gold
mining companies have taken a hit
along with everything else in the
equities downturn, savvy investors
could pick up some good deals. Gill
says one company that stands out as
a cracking bargain is Aureus Mining.
He asserts the firm has a decent
sized gold resource at the New
Liberty project in Liberia, which
could be dramatically
increased via an
ongoing drilling pro-
gramme. Gill believes when
investors recognise that the rise
in the gold price will significant-
ly improve the projects econom-
ics the shares could double, maybe
even treble, over the next year.
Although many think buyers of
Aim stocks are playing Russian
roulette with their finances, this
view is too broad-brush. It is possible
to put together whether independ-
ently or through a fund a balanced
portfolio of liquid and well-managed
Aim companies, and in the wake of
recent sell-offs, now might just be
the time to get these risky beasts in
your sights.
Aim-listed firms are currently a playground for stockpickers, writes Philip Salter
P
i
c
t
u
r
e
:

M
i
c
h
a

T
h
e
i
n
e
r
ANALYSIS l TLDH
19May 3Jul 10Jun 21 Jul 17Aug
10.875
9.062
7.250
8.000
17 Aug
p
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Wealth Management | Institutional FX
20 CITYA.M. 18 AUGUST 2011
Merkozys business-killing tax plans
T
UESDAYS announcement by Angela
Merkel and Nicholas Sarkozy that
they intend to implement a finan-
cial transactions tax in the EU was
bad news all round. But such a tax would
be particularly damaging to those within
the forex market.
Forex is the largest financial market in
the world, with a 2.5 trillion average daily
turnover. That is more than 12 times the
average daily turnover of the global equity
market. The annual FX turnover, at more
than 10 times world GDP, equates to more
than 300 a day for every man, woman,
and child on earth.
The UK is home to the largest share of
the FX market and would be the hardest
hit by a tax on financial transactions, with
City jobs and London-based business oper-
ations being driven abroad. Im against
the Tobin tax or any form of financial
transactions tax, says Brendan Callan,
chief executive of FXCM Europe. It will
hurt business here in the UK. At the very
least, we could all expect that instead of
international banks and brokerages
encouraging overseas clients to open and
trade through their UK/European based
offices, they will tackle each region locally
instead, or direct that business to the US or
Asian offices.
And as Nick Beecroft, senior markets
consultant for Saxo Bank, points out,
theres an age-old tradition among politi-
The Franco-Germanic tryst could
end badly, writes Craig Drake
A happy ending is
unlikely
Picture: REUTERS
cians to blame big, bad speculators; from
Harold Wilsons Gnomes of Zurich,
(apparently responsible for the 1964 ster-
ling crisis), to Malaysian Prime Minister
Mahatirs 1997 attack on George Soros in
particular, and hedge funds in general.
UNINTENDED CONSEQUENCES
It is so much easier to blame such scape-
goats than to admit to the fundamental
economic flaws which are actually driving
a currency down, or a government bond
yield through the roof, says Beecroft. He
also points to the law of unintended conse-
quences: market liquidity would be severe-
ly diminished, as the number of market
counterparties would be reduced, along
with their enthusiasm to enter into large
transactions. This would mean, for exam-
ple in FX, that the prices real hedgers
corporate treasurers for example would
have to pay would be that much worse,
directly impacting the profitability of
industry and doing nothing to help the
fledgling economic recoveries of the West.
Beecroft adds: In some currencies it might
even become impossible to find any FX
hedging prices at economically viable
prices.
European officials have been unclear as
to how the tax would be implemented, but
the European Commission has said that it
wants to see it in place by January 2014.
From the Citys perspective, the worst case
outcome would be for the tax to be adopt-
ed in the European Union but not else-
where in the world, says Neal Todd, tax
partner at Berwin Leighton Paisner. As the
major trading centre in Europe, London
would lose business to the rest of the world
and end up subsidising the Eurozone coun-
tries.
LON GD ONCE FIX AM...........1792.00 13.00
SILVER LDN FIX AM ..................39.98 0.11
MAPLE LEAF 1 OZ ....................66.00 1.00
LON PLATINUM AM................1829.00 16.00
LON PALLADIUM AM...............759.00 13.00
ALUMINIUM CASH .................2338.00 -7.00
COPPER CASH ......................8759.50 -63.50
LEAD CASH...........................2354.00 1.00
NICKEL CASH......................21575.00 200.00
TIN CASH.............................23970.00 -625.00
ZINC CASH ............................2128.00 -23.00
BRENT SPOT INDEX................109.45 0.68
SOYA .....................................1340.00 -3.50
COCOA..................................2961.00 59.00
COFFEE...................................251.55 5.85
KRUG.....................................1847.00 0.00
WHEAT ....................................164.25 -0.38
AIR LIQUIDE........................................88.09 0.41 100.65 80.00
ALLIANZ..............................................75.97 -0.40 108.85 67.82
ALSTOM ..............................................32.35 -0.02 45.32 29.24
ANHEUS-BUSCH INBEV ....................39.25 0.31 46.33 33.85
ARCELORMITTAL...............................15.51 -0.12 28.55 14.60
AXA......................................................11.36 0.14 16.16 9.27
BANCO SANTANDER...........................6.55 0.04 9.80 5.54
BASF SE..............................................53.50 -0.48 70.22 40.74
BAYER.................................................46.07 -0.17 59.44 41.33
BBVA......................................................6.48 -0.02 10.21 5.52
BMW ....................................................58.76 -0.11 73.85 40.16
BNP PARIBAS.....................................36.69 -0.81 59.93 32.93
CARREFOUR ......................................19.98 0.33 36.06 16.68
CREDIT AGRICOLE..............................6.72 -0.06 12.92 5.63
CRH PLC .............................................12.40 0.11 17.40 10.87
DAIMLER.............................................38.00 -0.07 59.09 35.28
DANONE..............................................48.60 0.65 53.16 41.00
DEU.BOERSE OFFRE ........................41.10 -2.15 55.75 39.71
DEUTSCHE BANK..............................30.07 -0.68 48.70 27.29
DEUTSCHE TELEKOM.........................9.54 -0.03 11.38 8.80
E.ON.....................................................15.21 -0.02 25.54 13.19
ENEL......................................................3.53 0.06 4.86 3.27
ENI .......................................................13.45 0.28 18.66 11.83
FRANCE TELECOM............................13.25 0.09 17.45 11.97
GDF SUEZ ...........................................20.71 0.27 30.05 18.32
GENERALI ASS...................................12.22 0.30 17.05 10.34
IBERDROLA..........................................5.20 0.02 6.50 4.66
ING GROEP CVA...................................6.15 -0.01 9.50 5.31
INTESA SANPAOLO.............................1.32 0.03 2.53 1.07
KON.PHILIPS ELECTR.......................14.37 -0.18 25.45 12.85
L'OREAL..............................................82.00 1.27 91.24 71.00
LVMH..................................................116.85 1.80 132.65 89.12
MUNICH RE.........................................92.80 0.14 126.00 84.67
NOKIA....................................................4.14 -0.16 8.49 3.33
REPSOL YPF.......................................19.19 0.01 24.90 17.31
RWE.....................................................27.63 0.30 55.88 24.53
SAINT-GOBAIN...................................34.85 0.09 47.64 27.81
SANOFI ................................................49.92 1.38 56.82 42.85
SAP......................................................36.39 -0.80 46.15 34.13
SCHNEIDER ELECTRIC.....................94.01 -0.73 123.65 81.30
SIEMENS .............................................74.25 -0.40 99.39 67.82
SOCIETE GENERALE.........................24.64 -0.64 52.70 20.16
TELECOM ITALIA..................................0.87 0.03 1.16 0.77
TELEFONICA ......................................14.60 0.18 19.69 13.01
TOTAL..................................................33.85 0.50 44.55 30.34
UNIBAIL-RODAMCO SE...................144.40 3.40 162.95 124.50
UNICREDIT............................................1.03 -0.02 2.05 0.90
UNILEVER CVA...................................23.55 0.51 24.08 20.68
VINCI ....................................................36.16 0.42 45.48 32.08
VIVENDI ...............................................15.95 0.20 22.07 14.10
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5331.60 -26.03 -0.49
FTSE 250 INDEX . . . . . . . 10369.42 -43.31 -0.42
FTSE UK ALL SHARE . . . . 2767.08 -13.23 -0.48
FTSE AIMALL SH . . . . . . . . 775.37 3.52 0.46
DOWJONES INDUS 30 . . 11410.21 4.28 0.04
S&P 500. . . . . . . . . . . . . . . . 1193.88 1.12 0.09
NASDAQ COMPOSITE. . . . 2511.48 -11.97 -0.47
FTSEUROFIRST 300 . . . . . . 971.87 2.71 0.28
NIKKEI 225 AVERAGE. . . . 9057.26 -50.17 -0.55
DAX 30 PERFORMANCE. . 5948.94 -45.96 -0.77
CAC 40 . . . . . . . . . . . . . . . . 3254.34 23.44 0.73
SHANGHAI SE INDEX . . . . 2601.26 -6.91 -0.27
HANG SENG. . . . . . . . . . . 20289.03 76.95 0.38
S&P/ASX 20 INDEX . . . . . . 2586.00 33.40 1.31
ASX ALL ORDINARIES . . . 4371.80 54.50 1.26
BOVESPA SAO PAOLO. . 55073.02 749.41 1.38
ISEQ OVERALL INDEX . . . 2566.22 28.76 1.13
STI . . . . . . . . . . . . . . . . . . . . 2828.53 -4.20 -0.15
IGBM. . . . . . . . . . . . . . . . . . . 884.14 5.48 0.62
SWISS MARKET INDEX. . . 5421.21 47.91 0.89
Price Chg %chg
3M........................................................82.13 -1.18 98.19 78.01
ABBOTT LABS ...................................50.07 0.16 54.24 45.07
ALCOA ................................................12.26 -0.30 18.47 9.92
ALTRIA GROUP..................................25.68 -0.02 28.13 22.15
AMAZON.COM..................................197.68 -5.27 227.45 122.46
AMERICAN EXPRESS........................44.89 -0.93 53.80 37.33
AMGEN INC.........................................51.27 -0.33 61.53 47.66
APPLE...............................................380.48 -2.93 404.50 236.78
AT&T....................................................28.79 -0.02 31.94 26.20
BANK OF AMERICA.............................7.40 -0.36 15.31 6.31
BERKSHIRE HATAW B.......................71.78 -0.76 87.65 66.51
BOEING CO.........................................62.23 -0.47 80.65 56.01
BRISTOL MYERS SQUI ......................28.39 0.22 29.73 20.05
CATERPILLAR....................................89.35 -2.02 116.55 63.34
CHEVRON...........................................98.14 -0.96 109.94 72.57
CISCO SYSTEMS................................16.00 -0.03 24.60 13.30
CITIGROUP.........................................29.94 -1.33 51.50 26.25
COCA-COLA.......................................68.17 -0.03 69.82 54.92
COLGATE PALMOLIVE......................86.22 -0.04 89.43 73.12
CONOCOPHILLIPS.............................66.54 -0.94 81.80 52.00
DU PONT(EI) DE NMR........................46.89 -0.83 57.00 38.71
EXXON MOBIL....................................73.50 -0.79 88.23 58.05
GENERAL ELECTRIC.........................16.15 -0.24 21.65 14.25
GOLDMAN SACHS GRP ..................116.90 -2.21 175.34 110.04
GOOGLE A........................................539.00 -18.23 642.96 448.00
HEWLETT PACKARD.........................32.61 0.18 49.39 29.75
HOME DEPOT.....................................33.12 1.66 39.38 27.10
IBM.....................................................171.24 -1.75 185.63 122.28
INTEL CORP .......................................20.79 -0.10 26.78 17.60
J.P.MORGAN CHASE.........................36.03 -0.85 48.36 33.69
JOHNSON & JOHNSON.....................64.36 -0.23 68.05 56.99
KRAFT FOODS A................................34.21 -0.47 36.30 24.30
MC DONALD'S CORP ........................86.67 -0.15 89.57 71.54
MERCK AND CO. NEW......................32.10 -0.03 37.68 29.47
MICROSOFT........................................25.35 -0.16 29.46 23.32
OCCID. PETROLEUM.........................87.37 -1.94 117.89 72.13
ORACLE CORP...................................27.57 -0.07 36.50 21.66
PEPSICO.............................................63.76 0.19 71.89 60.10
PFIZER ................................................18.31 -0.03 21.45 15.66
PHILIP MORRIS INTL .........................67.70 -0.63 72.74 50.54
PROCTER AND GAMBLE ..................61.62 -0.26 67.72 56.57
QUALCOMM INC ................................51.07 -0.19 59.84 37.54
SCHLUMBERGER ..............................78.63 -1.44 95.64 52.91
TRAVELERS CIES..............................51.98 -0.29 64.17 48.46
UNITED TECHNOLOGIE ....................72.55 -0.99 91.83 64.57
UNITEDHEALTH GROUP...................45.50 -0.44 53.50 30.82
VERIZON COMMS ..............................34.88 -0.17 38.95 29.10
WAL-MART STORES..........................51.92 1.94 57.90 48.31
WALT DISNEY CO ..............................33.42 -0.23 44.34 29.60
WELLS FARGO & CO.........................24.55 -0.47 34.25 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.500 0.00
LIBOR Euro - overnight ..................0.838 0.00
LIBOR Euro - 12 months ................2.051 0.00
LIBOR USD - overnight...................0.141 0.00
LIBOR USD - 12 months.................0.777 0.00
HaIifax mortgage rate .....................3.990 0.00
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.000 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................3.560 -0.10
European repo rate.........................0.703 -0.03
Euro Euribor ....................................1.133 0.00
The vix index ...................................31.42 -1.43
The baItic dry index ........................1.344 0.03
Markit iBoxx...................................229.36 1.62
Markit iTraxx..................................141.29 0.14
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.4441 0.0041
C/ 0.8727 0.0026
C/ 110.48 0.0600
/C 1.1459 0.0071
/$ 1.6441 0.0037
/ 126.60 0.2381
FTSE 100
5331.60
26.03
FTSE 250
10369.42
43.31
FTSE ALLSHARE
2767.08
13.23
DOW
11410.21
4.28
NASDAQ
2511.48
11.97
S&P 500
1193.88
1.12
RPC Group . . . . . . . .328.5 -0.1 384.8 209.2
Smiths Group . . . . . .969.5 -6.5 1429.0 945.5
Brown (N.) Group . . .263.0 -3.9 311.2 221.0
Carpetright . . . . . . . . .575.5 -4.0 835.5 564.0
Debenhams . . . . . . . . .60.4 0.1 77.4 56.1
Dignity . . . . . . . . . . . .763.0 -4.0 833.0 633.0
Dixons RetaiI . . . . . . .13.0 0.0 28.5 11.8
DuneImGroup . . . . . .446.0 -1.1 550.0 371.3
HaIfords Group . . . . .301.2 1.4 504.5 289.1
Home RetaiI Group . .133.2 -3.5 235.0 118.1
Inchcape . . . . . . . . . .328.4 -5.8 425.4 253.2
JD Sports Fashion . .864.0 12.5 1030.0 726.0
Kesa EIectricaIs . . . . .111.9 -1.0 174.0 109.0
Kingfisher . . . . . . . . .235.5 -1.0 287.1 198.5
Marks & Spencer G . .339.7 0.2 427.5 325.4
Mothercare . . . . . . . .378.7 -0.3 627.5 367.6
Next . . . . . . . . . . . . .2242.0 -15.0 2426.0 1868.0
Sports Direct Int . . . .217.7 -5.1 266.2 103.5
WH Smith . . . . . . . . . .479.8 23.4 523.0 398.2
Smith & Nephew . . . .571.5 8.5 742.0 521.0
Synergy HeaIth . . . . .915.0 -9.0 981.0 660.0
Barratt DeveIopme . . .77.6 0.4 119.0 70.1
BeIIway . . . . . . . . . . . .586.0 -3.0 753.5 511.0
YuIe Catto & Co . . . . .180.9 -1.4 253.0 136.5
BaIfour Beatty . . . . . .249.0 -13.9 357.3 234.6
KeIIer Group . . . . . . .382.7 -6.8 698.5 373.6
Kier Group . . . . . . . .1191.0 2.0 1418.0 970.0
Drax Group . . . . . . . .485.0 3.3 535.0 353.6
Scottish & Southe . .1270.0 5.0 1423.0 1108.0
Domino Printing S . .587.0 7.0 705.0 440.0
HaIma . . . . . . . . . . . . .362.6 -3.3 429.6 270.0
Laird . . . . . . . . . . . . . .163.9 3.9 207.0 121.1
Morgan CrucibIe C . .277.1 -1.7 357.1 189.1
Renishaw . . . . . . . . .1367.0 -34.0 1886.0 835.0
Spectris . . . . . . . . . .1404.0 7.0 1679.0 869.5
Aberforth SmaIIer . . .605.5 -5.5 714.0 507.0
AIIiance Trust . . . . . .340.5 -2.1 392.7 307.6
Bankers Inv Trust . . .380.6 -2.4 428.0 353.6
BH GIobaI Ltd. GB .1120.0 5.0 1174.0 1058.0
BH GIobaI Ltd. US . . . .11.1 -0.0 11.6 10.4
BH Macro Ltd. EUR . . .18.5 0.0 18.7 15.8
BH Macro Ltd. GBP 1906.0 5.0 1920.0 1630.0
BH Macro Ltd. USD . . .18.5 0.1 18.6 15.8
BIackRock WorId M .686.5 -3.5 815.5 557.0
BIueCrest AIIBIue . . .170.0 0.9 176.2 162.4
British Assets Tr . . . .121.6 -0.4 140.5 113.0
British Empire Se . . .484.0 -0.8 533.0 422.5
CaIedonia Investm .1618.0 -35.0 1928.0 1543.0
City of London In . . .272.5 -0.6 306.9 249.3
Dexion AbsoIute L . .140.1 -0.2 151.0 135.2
Edinburgh Dragon . .221.4 -2.4 262.1 215.0
Edinburgh Inv Tru . . .445.0 -2.5 492.2 392.4
EIectra Private E . . .1505.0 -15.0 1755.0 1289.0
F&C Inv Trust . . . . . .284.2 -0.9 327.9 263.8
FideIity China Sp . . . . .86.1 -1.0 128.7 80.0
FideIity European . .1085.0 -5.0 1287.0 937.5
FideIity SpeciaI . . . . .497.9 1.8 595.0 469.0
HeraId Inv Trust . . . . .472.3 3.3 545.5 383.5
HICL Infrastructu . . . .115.8 0.3 121.3 112.0
Impax Environment .103.4 -0.1 130.5 98.0
JPMorgan American .766.0 -10.0 916.0 673.0
JPMorgan Asian In . .211.8 3.4 250.8 195.3
JPMorgan Emerging .524.5 -0.5 639.0 505.5
JPMorgan European .780.0 -8.0 983.5 641.0
JPMorgan Indian I . . .381.3 -2.0 502.0 365.6
JPMorgan Russian .543.5 10.0 755.0 515.0
Law Debenture Cor . .345.5 -1.5 385.0 295.1
MercantiIe Inv Tr . . . .941.5 -11.0 1137.0 895.0
Merchants Trust . . . .376.0 1.0 431.8 345.0
Monks Inv Trust . . . .328.9 2.9 367.9 292.1
Murray Income Tru . .610.0 2.0 673.0 553.5
Murray Internatio . . .878.0 -2.0 991.5 824.0
PerpetuaI Income . . .250.5 0.5 276.0 218.0
PoIar Cap TechnoI . .324.1 -2.4 391.2 275.6
RIT CapitaI Partn . . .1280.0 9.0 1334.0 1110.0
Scottish Inv Trus . . . .450.1 1.1 524.0 409.0
Scottish Mortgage . .678.5 -10.0 781.0 566.0
SVG CapitaI . . . . . . . .257.0 2.0 279.8 148.9
TempIe Bar Inv Tr . . .856.0 3.0 952.0 754.0
TempIeton Emergin .586.0 4.0 689.5 539.0
TR Property Inv T . . .173.6 -1.5 206.1 142.0
TR Property Inv T . . . .78.3 -1.1 94.0 64.5
Witan Inv Trust . . . . .459.5 -2.7 533.0 426.1
3i Group . . . . . . . . . . .221.1 -6.4 340.0 212.6
3i Infrastructure . . . .121.5 -0.9 125.2 112.9
Aberdeen Asset Ma .192.4 -0.2 240.0 132.3
Ashmore Group . . . .366.2 -11.1 414.5 282.8
Brewin DoIphin Ho . .132.9 -1.1 185.4 117.0
CameIIia . . . . . . . . . .9300.0 0.010950.0 8050.0
CharIes TayIor Co . . .140.5 -4.5 232.0 122.0
City of London Gr . . . .77.5 0.0 93.6 77.1
City of London In . . .376.3 -2.0 461.5 278.5
CIose Brothers Gr . . .696.0 -14.0 888.5 656.5
CoIIins Stewart H . . . .70.5 -0.5 90.8 69.0
EvoIution Group . . . . .86.0 -4.0 92.0 62.3
F&C Asset Managem .67.7 -0.4 92.9 58.0
Hargreaves Lansdo .443.3 -14.7 646.5 386.0
HeIphire Group . . . . . . .3.1 -0.1 39.0 2.4
Henderson Group . . .138.5 -3.5 173.1 119.1
Highway CapitaI . . . . .14.5 0.0 21.0 6.0
ICAP . . . . . . . . . . . . . .428.0 -16.5 570.5 391.3
IG Group HoIdings . .410.9 -15.8 553.0 397.4
Intermediate Capi . . .230.3 -3.3 360.3 204.8
InternationaI Per . . . .261.2 -6.0 388.8 228.6
InternationaI Pub . . . .117.6 0.5 118.3 108.6
Investec . . . . . . . . . . .402.4 -6.5 538.0 387.5
IP Group . . . . . . . . . . . .44.8 -0.1 54.5 27.9
Jupiter Fund Mana . .212.5 -3.5 337.3 188.7
Liontrust Asset M . . . .82.1 0.0 95.3 72.0
LMS CapitaI . . . . . . . . .61.9 -0.4 64.8 41.0
London Finance & . . .21.5 0.0 23.5 16.5
London Stock Exch .846.0 -24.5 1076.0 640.0
Lonrho . . . . . . . . . . . . .15.0 -0.6 19.8 10.5
Man Group . . . . . . . . .199.2 -0.3 311.0 178.0
Paragon Group Of . .154.6 0.3 206.1 126.4
Provident Financi . .1050.0 12.0 1116.0 728.5
Rathbone Brothers .1026.0 3.0 1257.0 815.0
Record . . . . . . . . . . . . .29.5 -0.1 52.0 20.3
RSM Tenon Group . . .27.3 -0.3 66.3 21.3
Schroders . . . . . . . .1489.0 -31.0 1922.0 1330.0
Schroders (Non-Vo .1210.0 -16.0 1554.0 1071.0
TuIIett Prebon . . . . . .354.3 -15.5 428.6 334.5
WaIker Crips Grou . . .46.0 0.0 51.5 45.0
BT Group . . . . . . . . . .176.2 -0.8 204.1 130.6
CabIe & WireIess . . . .32.3 -0.5 61.1 31.3
CabIe & WireIess . . . .38.0 0.2 78.4 35.0
COLT Group SA . . . . .114.0 -1.0 156.2 109.0
TaIkTaIk TeIecom . . .127.9 -1.0 168.3 123.6
TeIecomPIus . . . . . . .636.5 -10.5 700.0 352.5
Booker Group . . . . . . .68.8 -0.6 77.9 43.3
Greggs . . . . . . . . . . . .489.3 8.2 550.5 429.1
Morrison (Wm) Sup .290.9 1.3 308.3 262.7
Ocado Group . . . . . . .123.8 5.1 285.0 118.7
Sainsbury (J) . . . . . . .304.3 1.8 395.0 280.4
Tesco . . . . . . . . . . . . .384.3 1.3 440.7 360.1
Associated Britis . .1038.0 16.0 1182.0 940.0
Cranswick . . . . . . . . .637.0 -1.5 896.0 606.0
Dairy Crest Group . . .357.0 3.7 424.9 334.1
Devro . . . . . . . . . . . . .260.2 -2.8 296.9 218.0
Premier Foods . . . . . . .15.2 0.4 35.1 13.0
Tate & LyIe . . . . . . . . .593.5 4.0 656.0 409.1
UniIever . . . . . . . . . .2072.0 37.0 2081.0 1688.0
Mondi . . . . . . . . . . . . .514.0 -8.0 664.0 447.0
Centrica . . . . . . . . . . .300.6 -3.9 346.1 287.3
InternationaI Pow . . .299.2 1.5 448.6 279.4
NationaI Grid . . . . . . .604.0 4.0 632.5 529.5
Northumbrian Wate .459.5 1.0 469.5 295.5
Pennon Group . . . . . .649.0 -6.0 737.5 560.0
Severn Trent . . . . . .1464.0 3.0 1517.0 1288.0
United UtiIities . . . . .595.0 2.5 632.0 543.5
Cookson Group . . . . .526.5 -8.0 724.5 412.3
DS Smith . . . . . . . . . .195.5 -4.0 266.2 125.8
Rexam . . . . . . . . . . . .358.5 -7.8 400.0 293.0
GIencore Internat . . .395.0 -1.0 531.1 363.0
BAE Systems . . . . . .264.4 2.8 369.9 248.1
Chemring Group . . . .504.0 5.1 736.5 486.7
Cobham . . . . . . . . . . .182.3 -0.3 245.6 174.2
Meggitt . . . . . . . . . . . .345.0 -0.5 397.6 261.7
QinetiQ Group . . . . . .114.0 0.6 136.3 96.7
RoIIs-Royce Group . .610.0 3.5 665.0 553.0
Senior . . . . . . . . . . . . .160.8 -0.1 190.6 111.2
UItra EIectronics . . .1393.0 -18.0 1895.0 1353.0
GKN . . . . . . . . . . . . . .202.5 4.1 245.0 138.5
BarcIays . . . . . . . . . . .174.0 -7.7 333.6 163.7
HSBC HoIdings . . . . .542.0 -10.6 730.9 516.2
LIoyds Banking Gr . . .32.8 -0.4 77.6 30.9
RoyaI Bank of Sco . . .24.8 -1.0 50.2 24.3
Standard Chartere .1404.5 -16.5 1950.0 1371.5
AG Barr . . . . . . . . . .1232.0 76.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .320.0 -5.9 503.5 308.7
Diageo . . . . . . . . . . .1183.0 -11.0 1307.0 1050.0
SABMiIIer . . . . . . . . .2139.0 21.0 2340.0 1841.0
AZ EIectronic Mat . . .233.5 2.8 338.1 216.0
Croda Internation . .1781.0 37.0 2081.0 1230.0
EIementis . . . . . . . . . .150.7 -0.8 187.4 86.0
Johnson Matthey . .1760.0 -13.0 2119.0 1550.0
Victrex . . . . . . . . . . .1331.0 -5.0 1590.0 1076.0
Price Chg High Low
BerkeIey Group Ho .1123.0 -4.0 1299.0 789.5
Bovis Homes Group .351.1 -1.8 464.7 326.6
Persimmon . . . . . . . .409.2 -4.1 502.5 336.5
Reckitt Benckiser . .3324.0 15.0 3648.0 3015.0
Redrow . . . . . . . . . . . .121.9 3.5 139.0 97.6
TayIor Wimpey . . . . . . .31.7 -0.1 43.3 22.3
Bodycote . . . . . . . . . .307.5 -7.1 397.7 214.5
Charter Internati . . . .700.0 9.0 853.5 538.5
Fenner . . . . . . . . . . . .346.5 0.5 422.5 198.0
IMI . . . . . . . . . . . . . . . .832.5 -33.0 1119.0 657.5
MeIrose . . . . . . . . . . .314.9 -3.1 365.4 205.4
Northgate . . . . . . . . . .291.3 -1.7 346.7 180.8
Rotork . . . . . . . . . . .1602.0 -33.0 1895.0 1507.0
Spirax-Sarco Engi . .1749.0 -3.0 2063.0 1532.0
Weir Group . . . . . . .1935.0 27.0 2218.0 1130.0
Ferrexpo . . . . . . . . . . .366.1 -1.9 499.0 278.0
TaIvivaara Mining . . .333.5 -26.8 622.0 313.1
BBAAviation . . . . . . .173.3 -1.7 240.8 170.0
Stobart Group Ltd . . .133.1 0.0 163.6 124.1
AdmiraI Group . . . . .1548.0 17.0 1754.0 1397.0
AmIin . . . . . . . . . . . . .334.6 0.6 433.0 317.7
Huntsworth . . . . . . . . .66.0 -0.9 86.0 59.8
Informa . . . . . . . . . . . .345.1 -7.4 461.1 340.5
ITE Group . . . . . . . . . .183.9 -3.1 258.2 150.3
ITV . . . . . . . . . . . . . . . . .59.0 -0.9 93.5 50.6
Johnston Press . . . . . . .5.1 -0.1 16.3 4.4
MecomGroup . . . . . .182.5 -1.5 310.0 180.3
Moneysupermarket. .108.7 1.2 120.4 70.3
Pearson . . . . . . . . . .1072.0 -27.0 1207.0 926.0
PerformGroup . . . . .160.0 -10.1 234.5 160.0
Reed EIsevier . . . . . .483.9 -0.6 590.5 466.3
Rightmove . . . . . . . .1121.0 -9.0 1250.0 596.5
STV Group . . . . . . . . .109.6 -2.3 168.0 83.5
Tarsus Group . . . . . .150.0 0.0 165.0 112.5
Trinity Mirror . . . . . . . .47.0 2.8 124.0 37.5
United Business M . .460.1 -5.7 725.0 441.9
UTV Media . . . . . . . . .108.8 -2.9 151.0 102.5
WiImington Group . . .98.9 -0.9 183.0 98.0
WPP . . . . . . . . . . . . . .625.0 -6.0 846.5 598.0
YeII Group . . . . . . . . . . .5.7 0.1 18.6 5.1
African Barrick G . . .549.5 18.5 638.0 393.5
AngIo American . . .2471.0 10.5 3437.0 2254.0
AngIo Pacific Gro . . .293.0 -7.0 369.3 249.0
Antofagasta . . . . . . .1262.0 34.0 1634.0 977.5
Aquarius PIatinum . .259.8 16.2 419.0 216.9
BHP BiIIiton . . . . . . .2022.0 7.5 2631.5 1767.0
BeazIey . . . . . . . . . . . .113.3 -0.2 139.2 110.1
CatIin Group Ltd. . . .385.8 -2.2 421.4 325.0
Hiscox Ltd. . . . . . . . . .360.5 2.2 424.7 341.5
Jardine LIoyd Tho . . .615.5 5.5 709.0 561.0
Lancashire HoIdin . . .660.0 -10.0 700.0 518.5
RSA Insurance Gro . .117.9 -0.3 143.5 109.5
Aviva . . . . . . . . . . . . . .349.8 -4.4 477.9 328.4
LegaI & GeneraI G . . .102.5 -0.1 123.8 89.4
OId MutuaI . . . . . . . . .115.1 -1.6 145.2 103.2
Phoenix Group HoI . .510.0 3.5 758.0 458.0
PrudentiaI . . . . . . . . .621.0 -15.5 777.0 547.0
ResoIution Ltd. . . . . .271.6 3.7 316.1 211.3
St James's PIace . . . .335.0 -5.5 376.0 236.2
Standard Life . . . . . . .201.5 -10.9 244.7 172.0
4Imprint Group . . . . .236.5 -1.0 295.0 195.0
Aegis Group . . . . . . .136.8 -1.5 163.5 110.7
BIoomsbury PubIis . .102.0 -2.3 138.0 98.8
British Sky Broad . . .666.5 -8.5 850.0 651.5
Centaur Media . . . . . . .39.0 -0.9 73.0 38.8
Chime Communicati .207.0 -4.0 298.5 168.8
Creston . . . . . . . . . . . .90.5 1.5 121.0 78.5
DaiIy MaiI and Ge . . .380.0 -0.1 594.5 363.3
Euromoney Institu . .606.0 -3.0 736.0 578.0
Future . . . . . . . . . . . . . .13.5 0.4 30.0 11.8
Haynes PubIishing . .230.0 0.0 262.5 202.5
Centamin Egypt Lt . .109.0 1.0 197.1 89.7
Eurasian NaturaI . . .655.0 23.5 1125.0 585.5
FresniIIo . . . . . . . . . .1966.0 105.0 1966.2 990.0
GemDiamonds Ltd. .188.1 1.1 306.0 179.8
HochschiId Mining . .470.8 14.4 680.0 320.5
Kazakhmys . . . . . . .1044.0 15.0 1671.0 918.0
Kenmare Resources . .44.6 -0.9 59.9 15.3
Lonmin . . . . . . . . . . .1203.0 9.0 1983.0 1103.0
New WorId Resourc .592.0 4.5 1060.0 543.5
PetropavIovsk . . . . . .763.5 12.0 1252.0 676.0
RandgoId Resource 6440.0 5.0 6655.0 4425.0
Rio Tinto . . . . . . . . .3739.0 10.0 4712.0 3105.0
Vedanta Resources 1402.0 19.0 2559.0 1287.0
Xstrata . . . . . . . . . . .1082.0 1.0 1550.0 969.8
Inmarsat . . . . . . . . . . .449.2 4.5 725.0 389.7
Vodafone Group . . . .167.7 -0.3 181.9 149.4
Genesis Emerging . .469.0 1.4 568.0 445.5
Afren . . . . . . . . . . . . . .104.0 -3.3 171.2 92.5
BG Group . . . . . . . . .1307.5 -11.0 1564.5 1030.0
BP . . . . . . . . . . . . . . . .413.0 -3.6 509.0 375.2
Cairn Energy . . . . . . .313.7 -1.3 486.4 284.4
EnQuest . . . . . . . . . . .111.8 -1.6 158.5 98.0
Essar Energy . . . . . .293.6 -0.4 589.5 262.1
ExiIIon Energy . . . . . .342.0 -11.8 469.7 167.0
Heritage OiI . . . . . . . .227.5 -0.4 486.0 190.0
JKX OiI & Gas . . . . . .202.0 -7.0 335.1 198.1
Premier OiI . . . . . . . . .361.1 -3.3 535.0 327.3
RoyaI Dutch SheII . .1993.0 -12.5 2326.5 1703.0
RoyaI Dutch SheII . .1992.0 -20.5 2336.0 1642.0
SaIamander Energy .240.4 -1.6 317.6 210.0
Soco Internationa . . .303.3 1.0 484.2 279.8
TuIIow OiI . . . . . . . . .1070.0 -5.0 1493.0 951.5
Amec . . . . . . . . . . . . .952.5 -11.0 1251.0 834.0
Hunting . . . . . . . . . . .685.0 -11.0 817.0 554.0
John Wood Group . .576.5 -3.0 715.8 350.4
LampreII . . . . . . . . . . .322.0 2.1 395.2 223.9
Petrofac Ltd. . . . . . .1170.0 -46.0 1685.0 1110.0
Burberry Group . . . .1347.0 -11.0 1600.0 820.5
PZ Cussons . . . . . . . .354.4 -0.2 409.0 320.5
Supergroup . . . . . . . .995.0 15.0 1820.0 818.5
AstraZeneca . . . . . .2850.0 17.5 3385.0 2543.5
BTG . . . . . . . . . . . . . .272.5 -2.5 309.7 200.1
Genus . . . . . . . . . . . . .892.0 7.0 1046.0 710.5
GIaxoSmithKIine . . .1279.0 -1.0 1385.0 1127.5
Hikma Pharmaceuti .656.5 -13.5 900.0 561.5
Shire PIc . . . . . . . . . .1983.0 20.0 2136.0 1376.0
CapitaI & Countie . . .171.8 0.5 203.7 115.0
Daejan HoIdings . . .2573.0 63.0 2954.0 2282.0
F&C CommerciaI Pr .103.4 1.4 108.0 88.0
Grainger . . . . . . . . . . . .99.2 -1.3 133.2 86.3
London & Stamford .122.1 -0.2 140.0 110.3
SaviIIs . . . . . . . . . . . . .312.5 -5.4 427.1 296.6
St. Modwen Proper . .143.0 3.0 196.2 135.4
UK CommerciaI Pro . .80.0 0.2 85.5 70.4
Unite Group . . . . . . . .165.0 -4.1 229.8 162.8
Big YeIIow Group . . .253.4 3.4 353.3 237.4
British Land Co . . . . .542.5 -1.5 629.5 447.5
CapitaI Shopping . . .335.3 1.7 424.8 312.5
Derwent London . . .1717.0 -19.0 1880.0 1374.0
Great PortIand Es . . .387.1 2.6 445.0 310.7
Hammerson . . . . . . . .418.1 -8.5 490.9 352.2
Hansteen HoIdings . . .79.5 1.3 89.5 62.4
Land Securities G . . .791.5 -9.0 885.0 598.0
SEGRO . . . . . . . . . . . .254.4 2.8 331.3 243.4
Shaftesbury . . . . . . . .486.6 -1.6 539.0 397.6
Autonomy Corporat 1558.0 -14.0 1857.0 1271.0
Aveva Group . . . . . .1474.0 -33.0 1799.0 1353.0
Computacenter . . . . .421.8 -0.2 490.0 267.2
Fidessa Group . . . . .1600.0 8.0 2109.0 1350.0
Invensys . . . . . . . . . . .248.6 -1.5 364.3 230.2
Kofax . . . . . . . . . . . . .320.5 5.4 535.0 231.0
Logica . . . . . . . . . . . . .85.4 -1.0 147.2 83.7
Micro Focus Inter . . .286.0 -12.7 426.2 239.4
Misys . . . . . . . . . . . . .251.2 -12.7 420.2 249.2
Sage Group . . . . . . . .245.6 -3.6 302.0 236.7
SDL . . . . . . . . . . . . . . .630.0 -2.5 711.5 520.0
TeIecity Group . . . . . .537.0 15.0 559.5 430.0
Aggreko . . . . . . . . . .1887.0 -6.0 2034.0 1351.3
Ashtead Group . . . . .115.4 -2.7 207.9 77.0
Atkins (WS) . . . . . . . .592.5 -12.0 820.0 582.0
Babcock Internati . . .614.5 -4.5 733.0 492.8
Berendsen . . . . . . . . .495.0 32.2 568.0 363.1
BunzI . . . . . . . . . . . . .729.5 -2.0 801.0 676.5
Capita Group . . . . . . .719.0 1.0 794.5 635.5
CariIIion . . . . . . . . . . .323.9 -3.9 403.2 291.2
De La Rue . . . . . . . . .804.5 -3.5 853.5 549.5
EIectrocomponents .201.0 -5.3 294.9 190.5
Experian . . . . . . . . . . .710.0 -8.5 833.5 606.0
FiItrona PLC . . . . . . . .334.7 5.8 385.5 227.5
G4S . . . . . . . . . . . . . . .253.4 -2.5 291.0 237.7
Hays . . . . . . . . . . . . . . .74.4 -2.1 133.6 69.4
Homeserve . . . . . . . .455.0 -4.1 532.0 408.0
Howden Joinery Gr . .100.7 1.4 127.5 63.0
Intertek Group . . . . .1960.0 16.0 2148.0 1674.0
MichaeI Page Inte . . .370.4 -2.8 567.0 366.3
Mitie Group . . . . . . . .218.0 0.1 242.5 188.7
Premier FarneII . . . . .183.4 2.4 308.8 168.4
Regus . . . . . . . . . . . . . .79.8 -2.6 119.0 66.1
RentokiI InitiaI . . . . . . .79.0 -0.4 107.1 74.5
RPS Group . . . . . . . . .206.0 -0.5 253.0 169.8
Serco Group . . . . . . .530.0 -2.5 633.0 495.7
Shanks Group . . . . . .115.2 -1.3 130.9 96.5
SIG . . . . . . . . . . . . . . .114.3 0.8 153.5 90.7
SThree . . . . . . . . . . . .269.6 -0.4 447.6 231.1
Travis Perkins . . . . . .802.0 -6.5 1127.0 727.5
WoIseIey . . . . . . . . .1563.0 -9.0 2261.0 1223.0
ARM HoIdings . . . . . .514.5 -11.0 651.0 314.2
CSR . . . . . . . . . . . . . .238.0 -2.9 447.0 229.3
Imagination Techn . .333.3 -10.7 502.0 303.5
Pace . . . . . . . . . . . . . .106.0 0.3 231.8 91.0
Spirent Communica .127.4 -3.1 160.3 119.8
British American . .2738.5 -45.5 2871.0 2166.0
ImperiaI Tobacco . .2057.0 5.0 2231.0 1784.0
Avis Europe . . . . . . . .312.5 0.1 313.0 184.0
Betfair Group . . . . . . .640.0 27.5 1550.0 567.0
Bwin.party Digita . . . .115.0 0.8 297.9 101.7
CarnivaI . . . . . . . . . .1890.0 -10.0 3153.0 1792.0
Compass Group . . . .535.5 -1.0 612.0 504.5
Domino's Pizza UK . .486.8 -1.4 586.0 377.0
easyJet . . . . . . . . . . . .345.2 -7.1 479.0 301.0
Enterprise Inns . . . . . .45.8 1.9 122.7 38.0
FirstGroup . . . . . . . . .350.4 2.6 412.6 311.3
Go-Ahead Group . . .1433.0 6.0 1598.0 1073.0
Greene King . . . . . . .437.4 -0.1 518.0 398.0
InterContinentaI . . .1052.0 -5.0 1435.0 963.0
InternationaI Con . . .187.8 -0.1 305.0 177.3
JD Wetherspoon . . . .409.6 -0.4 468.3 389.9
Ladbrokes . . . . . . . . .126.0 -0.5 155.3 122.7
Marston's . . . . . . . . . . .92.6 -0.1 117.1 90.2
MiIIennium& Copt . .446.6 -3.4 600.5 437.9
MitcheIIs & ButIe . . . .246.4 -0.6 361.0 229.1
NationaI Express . . .238.1 -2.7 270.2 221.2
Rank Group . . . . . . . .119.8 -0.2 153.7 103.3
Restaurant Group . . .274.8 2.0 335.0 229.2
Spirit Pub Compan . . .45.0 1.0 55.0 37.0
Stagecoach Group . .239.0 0.7 268.5 167.3
Thomas Cook Group .52.7 0.4 204.8 45.5
TUI TraveI . . . . . . . . . .162.7 2.0 271.9 155.0
Whitbread . . . . . . . .1500.0 15.0 1887.0 1368.0
WiIIiamHiII . . . . . . . . .222.1 -1.0 237.3 155.5
Abcam . . . . . . . . . . . .343.3 -6.8 460.0 307.0
AIbemarIe & Bond . .377.9 -5.1 400.1 226.5
Amerisur Resource . .17.0 -0.8 29.0 11.5
Andor TechnoIogy . .598.0 18.0 685.0 311.0
ArchipeIago Resou . . .73.0 -2.0 79.0 32.3
ASOS . . . . . . . . . . . .1858.0 52.0 2468.0 840.0
AureIian OiI & Ga . . . .46.0 1.3 92.0 42.5
Avanti Communicat .315.0 -8.3 735.0 288.8
Avocet Mining . . . . . .246.0 5.0 253.5 112.0
BIinkx . . . . . . . . . . . . . .98.0 -0.8 148.8 67.5
Borders & Souther . . .52.0 0.3 93.0 44.8
BowLeven . . . . . . . . .134.5 -4.5 398.0 116.3
Brooks MacdonaId 1052.5 -0.5 1372.5 857.5
CaIedon Resources .111.5 -0.3 111.8 45.8
Conygar Investmen . .97.5 0.0 120.0 95.4
Cove Energy . . . . . . . .66.8 -1.0 112.8 57.0
Daisy Group . . . . . . .109.8 1.1 127.0 88.0
EMIS Group . . . . . . . .532.8 -1.8 580.0 303.5
Encore OiI . . . . . . . . . .47.8 -0.8 151.5 40.8
Faroe PetroIeum . . . .150.8 3.0 218.3 133.0
GuIfsands PetroIe . . .183.8 -1.3 401.5 179.0
GWPharmaceuticaI . .96.0 -3.5 130.0 83.0
Hamworthy . . . . . . . .550.0 -14.5 705.0 328.0
Hargreaves Servic . .911.0 -10.0 1076.0 605.0
HeaIthcare Locums . . . .0.0 0.0 0.0 0.0
Immunodiagnostic .1110.0 50.0 1218.0 720.0
ImpeIIamGroup . . . .290.4 15.1 387.5 122.0
James HaIstead . . . . .469.1 19.1 495.0 306.0
KaIahari MineraIs . . .234.8 1.8 301.0 142.0
London Mining . . . . .311.0 1.0 436.5 240.3
Lupus CapitaI . . . . . .102.5 3.5 150.0 78.0
M. P. Evans Group . .400.0 -1.9 500.5 350.3
Majestic Wine . . . . . .436.0 0.0 510.0 306.0
May Gurney Integr . .254.3 -4.4 295.0 177.0
Monitise . . . . . . . . . . . .33.5 -1.0 39.0 18.5
MuIberry Group . . . .1713.0 -12.0 1920.0 331.5
Nanoco Group . . . . . . .67.9 -0.1 115.8 57.5
NauticaI PetroIeu . . .266.8 -13.3 547.0 151.0
NichoIs . . . . . . . . . . . .539.5 4.5 579.0 410.0
Numis Corporation . . .95.6 -1.3 146.5 93.9
Pan African Resou . . .12.1 0.1 13.8 6.1
Patagonia GoId . . . . . .64.0 0.8 68.0 15.3
Prezzo . . . . . . . . . . . . .63.5 -0.6 71.5 41.5
Pursuit Dynamics . . .238.3 -1.8 700.0 160.5
Rockhopper ExpIor .231.3 0.3 510.0 141.0
RWS HoIdings . . . . . .475.0 20.0 475.0 244.0
Songbird Estates . . .128.3 1.8 160.3 110.3
VaIiant PetroIeum . . .533.5 6.0 761.5 504.0
Young & Co's Brew . .645.0 -5.0 712.0 525.0
Berendsen . . . . . . . . .495.0 7.0
Aquarius PIatinum . .259.8 6.7
AG Barr . . . . . . . . . .1232.0 6.6
FresniIIo . . . . . . . . . .1966.0 5.6
WH Smith . . . . . . . . . .479.8 5.1
Betfair Group . . . . . . .640.0 4.5
Ocado Group . . . . . . .123.8 4.3
Enterprise Inns . . . . . .45.8 4.3
Eurasian NaturaI R . .655.0 3.7
African Barrick Go . .549.5 3.5
TaIvivaara Mining . . .333.5 -7.4
Perform Group . . . . .160.0 -5.9
BaIfour Beatty . . . . . .249.0 -5.3
Standard Life . . . . . . .201.5 -5.1
Misys . . . . . . . . . . . . .251.2 -4.8
Micro Focus Intern . .286.0 -4.3
BarcIays . . . . . . . . . . .174.0 -4.2
TuIIett Prebon . . . . . .354.3 -4.2
IMI . . . . . . . . . . . . . . . .832.5 -3.8
RoyaI Bank of Scot . . .24.8 -3.8
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
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NONEQUITY INVESTM. COMM.
Tsy 3.250 11 . . . . .100.72 -0.13 103.5 100.7
Tsy 2.500 11 . . . . .306.46 0.03 310.0 306.4
Tsy 5.250 12 . . . .103.76 0.01 108.1 103.7
Tsy 9.000 12 . . . .108.00 0.00 115.8 107.8
Tsy 5.000 12 . . . .102.45 -0.02 106.8 102.4
Tsy 4.500 13 . . . .106.03 0.07 109.2 105.8
Tsy 2.500 13 . . . .285.71 0.06 287.7 277.5
Tsy 8.000 13 . . . . .115.40 0.08 121.3 115.3
Tsy 5.000 14 . . . . .112.56 0.20 114.1 109.2
Tsy 7.750 15 . . . .102.50 -0.58 342.1 102.5
Tsy 8.000 15 . . . .128.74 0.29 131.6 123.7
Tsy 4.750 15 . . . . .114.42 0.30 114.7 108.6
Tsy 2.500 16 . . . .340.35 0.31 340.7 310.2
Tsy 4.000 16 . . . . .112.67 0.43 112.9 104.9
Tsy 1.250 17 . . . . .114.55 0.38 114.7 106.7
Tsy 8.750 17 . . . .140.78 0.17 142.2 132.9
Tsy 12.000 17 . . .125.70 0.00 185.9 125.2
Tsy 5.000 18 . . . .120.05 0.57 120.1 109.7
Tsy 4.500 19 . . . . .117.22 0.70 117.3 105.4
Tsy 3.750 19 . . . . .111.52 0.73 111.6 99.4
Tsy 4.750 20 . . . . .119.05 0.80 119.1 106.6
Tsy 2.500 20 . . . .353.24 0.52 353.7 312.4
Tsy 8.000 21 . . . .148.76 0.76 148.8 133.8
Tsy 1.875 22 . . . .122.16 0.51 122.5 111.3
Tsy 4.000 22 . . . . .111.34 1.01 111.4 99.0
Tsy 2.500 24 . . . .312.92 0.82 313.4 273.5
Tsy 5.000 25 . . . .120.70 1.26 120.8 107.4
Tsy 1.250 27 . . . . .116.67 1.16 117.1 104.6
Tsy 4.250 27 . . . . .110.43 1.54 110.6 97.9
Tsy 6.000 28 . . . .133.88 1.51 134.0 119.5
Tsy 4.750 30 . . . . .115.92 1.66 116.1 103.0
Tsy 4.125 30 . . . .295.34 1.02 296.5 260.0
Tsy 4.250 32 . . . .108.55 1.74 108.8 96.0
Tsy 4.250 36 . . . .107.20 1.89 107.5 95.0
Tsy 4.750 38 . . . . .116.02 1.96 116.5 102.8
Tsy 4.500 42 . . . .109.28 0.00 112.8 98.9
% %
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Wealth Management | Markets 21 CITYA.M. 18 AUGUST 2011
THE REVIVAL
It appears the meeting is broken
beyond repair. But there is hope if we
start from scratch and design a new
meeting, a modern meeting.
Traditional meetings have never
had a clear definition or precise
boundaries. The modern meeting will
exist for only one reason: to support
decisions. Since bold decisions are
what move our organisations forward
and produce meaningful action, lets
design meetings in a way that helps
enable decision-making, instead of
inhibiting it.
Lets declare that a meeting cant
exist without a decision to support.
Individuals will step up and take
responsibility for their own decisions.
Theyll gain input from others, individ-
ually if necessary, but eventually these
leaders are required to come up with
their own preliminary decision. The
meeting can be a forum to debate and
arrive at a final resolution.Well make
meetings shorter, faster, invite less
attendees, reject the unprepared.
The promise of organisation is that
many people working together can
produce much more impact than the
sum of those individuals working
alone. If we can make the modern
meeting a tool for change, worthy of
the heart and soul we bring to work
each day, maybe organisations will
have much more impact.
Als book, Read This Before Our Next
Meeting is published by The Domino
Project. It was the number one Amazon
Kindle book in the world in the week of its
release.
I
THINK 100 years from now, well
look back at the absurd amount of
time organisations spend inside
of meetings and well laugh. Or
maybe well cry. The meeting problem
has grown into a full-blown debacle.
Back to back to back, poorly executed,
tortuously long meetings are hijack-
ing our calendars and draining our
enthusiasm. But if everyone abhors
them so much, how has this time-
wasting pox remained uncured?
Its because meetings are part of a
clever, quasi-fiendish scheme perpe-
trated by individuals in organisations
all over the world, maybe even you. It
begins when an important decision
that needs to be made appears. The
person responsible for making that
decision has a dilemma: making the
right decision might earn him a pat
on the back, but making the wrong
move can jeopardise his career. After
all, people might blame him. He
might even get fired.
But what if there was an easy way to
avoid making the decision? An option
that would allow him to abdicate
responsibility to a group, delay the
decision indefinitely, and look produc-
tive all at the same time?
There is. Its called a meeting.
Meetings have become the stalling tac-
tic of choice for people at every level of
the organisation. Rather than con-
front difficult decisions, gather a rea-
sonable amount of input, and then
decide, we schedule endless meetings
instead. Unfortunately, this tragedy of
the commons has two terrible conse-
quences.
First, it creates a culture of compro-
mise. The standard business meeting
consists of one person who brings a
decision and then hands it off to a
committee. The committee adopts the
decision and tries to agree on a resolu-
tion. Yet much like Bigfoot or the Loch
Ness Monster consensus is elusive (in
fact Ive never seen it, so Im not quite
sure it even exists). Eventually, the
decision gets watered down until what
is left is a pathetic compromise that
creates little to no change.
Second, our debilitating meetings
culture creates an environment of
constant interruption, killing our
sense of urgency. Excessive meetings
are producing schedules that leave lit-
tle time for real work. Our best people,
true artists, never have the long
stretches of focused time necessary to
do their best work on deadline.
Meetings sap their life and vitality,
leaving them bleary-eyed and jaded.
Naturally they become resigned, mere-
ly trying to survive the day instead of
focusing on producing the kind of out-
put that changes everything.
T
ECH gurus everywhere were
shaking with excitement when
Googles answer to Facebook,
Twitter and LinkedIn was
launched earlier this year. Google Plus
hopes to carve out its niche by giving
users greater control over who sees
what information. This could make it
very popular. Stories like that of the
jobseeker who tweeted: Cisco just
offered me a job! Now I have to weigh
the utility of a fatty paycheck against
the daily commute to San Jose and hat-
ing the work send shudders down the
spine when you learn that it wasnt
long until Tim Levad, a channel part-
ner advocate from Cisco, tweeted back:
Who is the hiring manager? Im sure
they would love to know that you will
hate the work. We here at Cisco are
versed in the web. While avoiding car
crashes like these is relatively straight-
forward, we wondered if it was possi-
ble to get a job through social
networking.
We sought out those who got their
job through the internet. Joas Belo,
the chief marketing officer at
Marketinvoice, scored his job by scour-
ing his friends LinkedIn connections.
I was browsing through the profiles
and I found that one of my friends was
connected to someone at
Marketinvoice, I didnt know anything
about the company, so I clicked on
their website and it turned out they
were looking for someone. Belo was
referred to them through his friend
and the rest is history. I would highly
recommend using LinkedIn to find a
job, says Belo getting referred to
someone is a powerful introduction.
Belo tried using Twitter and Facebook
to find opportunities, but didnt have
the same luck.
ON AND OFFLINE CONTACTS
Bryce Keane, a digital strategist at
Cohn & Wolfe, a WPP PR agency, how-
ever, got his job through Twitter. I
started using Twitter when I arrived in
London. Being an Aussie, I didnt have
many contacts in London when I
arrived. I found that social networking
put me in touch with a whole commu-
nity of people I wanted to meet. These
contacts started online, but quickly
became friendships offline. There are
loads of socials for the creative and
digital community. I started going
along to them thats how I met the
guy who eventually gave me my job.
Recruiters are social networking
too. James Callander, the managing
director of Freshminds, says his staff
are often searching LinkedIn. Its a
simple way for us to start to looking
for candidates that match our clients
requests.
Great. But how do we make sure our
social networking increases our
chances of career success?
Keane says: I think you have to have
the end goal in sight, present yourself
as the person you want to be online.
This starts with your Twitter biogra-
phy and how you tag yourself on
LinkedIn, but bores down to the types
of things you discuss and who you
interact with. Think of it this way:
excellent content online attracts read-
ers to websites. The same applies to
people. If you get involved in an online
community and tweet things that are
interesting to the people you want to
get to know, theyll start tweeting
back.
That good content is essential on
your LinkedIn profile. Callander says:
When were trying to pair candidates
to job specifications we need to know
how long a candidate has been at a
company. Simply listing your employ-
er without saying how long youve
been there, isnt particularly useful to
us.
Much of it, Keane says, is about
taking those online relationships and
turning them into friendships just
like old-fashioned networking.
Tweet Keane at @Digital_Sizzle to get
involved in his offline social network.
Social network
your way into
a new career
Business Features| Careers
We must reinvent our meetings culture
Juggling online networking tools can pay off Picture: REX/COMPOSITE
Meetings dont have to be this way Picture: GETTY
AL PITTAMPALLI
AUTHOR
Put your online procrastination to
good use: connect with people to
get a new job, says Donata Huggins
22
Abidjan house strewn with mangoes; they
are always drinking wine and whisky and
taking in exotic smells from local bakeries
or neighbours cooking sensational things.
In other words: the book reads a bit like a
study in perfected middle class
bohemianism.
Its saving grace is the truly extraordi-
nary careers of its heroes: indeed, Id
rather have had more on how Di Giovanni
went about becoming a senior correspon-
dent, for example, and how it was as a
woman in those warzones. I could have
done with a bit less about what it was like
bearing Brunos son, however beautiful
he, she, and their child are since that story
has surely been told and well countless
times before.
THE REAL MAD MEN
BY ANDREW CRACKNELL
Quercus, 14.99
hhhii
ANDREW Cracknell makes a slightly lame
attempt to jump aboard the Mad Men
bandwagon here. The thing is, he had no
need to use it as more than the most minor
hook for, as it turns out for those not in
the know, the history of advertising, partic-
ularly the 1950s and 1960s in New York, is
rich and fascinating.
It was in this period that Madison
Avenue went through a revolution, where-
by the business changed beyond all recogni-
tion, from shouty, haranguing
science-based missives to creative, relaxed
and deeply original campaigns. Cracknell
here is asking how this creative revolution
happened and why, and spent two years
interviewing the surviving big shots of that
time.
The stars of the explosion were Bill
Bernbach and his team of outsiders (includ-
ing women and beatniks) who hit the big
time with their company Doyle Dane
Bernbach (DDB), which famously worked
with Volkswagen. Selling Hitlers car to
post-war America took brains and guts.
The only common denominator in our
ads, said Bernbach, is that each one has a
fresh idea.
Far more than just a look at ads, this is as
good a history of a period of American his-
tory as any.
A YEAR IN THE VILLAGE
OF ETERNITY
BY TRACEY LAWSON
Bloomsbury, 20
hhhii
IS it annoying that a mission to find out
what makes the people of the Italian hill-
top town of Campodimele radiate vitality
into their 80s and 90s turns into a dewy
eyed account of fresh, hand-picked vegeta-
bles and fragrant local stews?
Yes. Of course. But that doesnt mean it
isnt rather a juicy read, like so much food
writing.
Known as the village of eternal youth,
the central Italian mountaintop village
has attracted significant scientific inter-
est. The key to the longevity of its inhabi-
tants, says Lawson, involves olive oil and
great tomatoes, picked with love and care.
Its a nicely written book though, and
might even inspire you to start your own
vegetable patch, even if you cant up sticks
and join the oldies in Campodimele.
Glamorous war reporters
memoir of danger and love
Janine Di Giovanni has
covered the most
ferocious wars of the
last 20 years.
Picture: REX
Janine Di Giovanni writes about her life as a
foreign correspondent and, finally, a mother
with studied elegance, writes Zoe Strimpel
GHOSTS BY DAYLIGHT
BY JANINE DI GIOVANNI
Bloomsbury, 16.99
hhhii
JANINE Di Giovanni is statuesque: a volup-
tuous brunette, she seems to tower over
most of her peers. She seems larger than
life but this is not just a physical thing: for
twenty years she reported on the worlds
grizzliest wars, returning again and again
to Bosnia, Africa, Iraq and Afghanistan.
She has seen so much that, as she testifies
flatly: Everything evil can and will hap-
pen. Shes also impossibly glamorous,
having written four previous books and
worked for Vanity Fair, the Times, and
CNN.
This is her memoir. Half is about the
strangeness of the two decades she spent
burying herself among death and destruc-
tion. The truth is, I was not afraid when I
was in the middle of chaos. It was real life
with its vast responsibilities and wells of
insecurities that frightened meBills, pen-
sions, marriage, divorce, loneliness, debt
could not reach you in a bush or on a front
line. Indeed.
The other half, or more, is about her
love affair with Bruno, a typically roman-
tic-seeming French cameraman with
whom she instantly fell in love (this
phrase is used generously throughout) in
the lobby of the Holiday Inn in Sarajevo in
1993.
But it wasnt plain sailing. It took them
nearly twenty years to settle down, to start
a life together in a peaceful country, hav-
ing lived and loved always amid serious
danger each of them often in different
warzones. They broke up for years, got
back together, finally moving in together
in Abidjan, the Ivory Coast, where they
stayed together until the Civil War of 2002
drove them apart again.
Di Giovanni writes about having a late
pregnancy and childbirth after three mis-
carriages; her struggle to unite her and
Bruno once and for all. She writes about
motherhood, wifehood and love with ele-
gance but I cant help but feel she paints a
glamorous, rather than a realistic picture.
Or at least, its a study of two lives lived in
danger, but where everything seems rose-
tinted: Brunos beautiful, she is beauti-
ful, so is their sprawling Paris flat and
I DONT LIKE MONDAYS AT THE
HILTON PARK LANE
What better way to get over the
start of the week than a Sunday
night spent in the lap of luxury, with in-
room treats of popcorn and Prosecco
and a selection of films. Monday
morning will begin with a
continental breakfast delivered to
the room and if you want to
play hookie a late checkout.
Package is 318 based on two people
per room. hilton.co.uk/londonparklane.
ANN BOLEYN AT THE GLOBE
A combination of ambition, allure and
tragedy has long made Ann the most
popular woman in history. Dont miss
the chance to see the Globes celebration
of a great English heroine that leaps
between generations to reveal the debt
the outrageous but scholarly King
James owed to Anne when he shrewdly
reconciled Englands religious factions
by creating his common, authorised
Bible. Until 21 Aug. To book, go to shakespear-
esglobe.com
PROM 47: BEST OF BRAHMS
Short of something to do tomorrow?
Head to the BBC Proms, a consistently
excellent source of entertainment, but
uniquely so tomorrow due to a wonder-
ful Brahms programme played by the
Chamber Orchestra of Europe in its 30th
anniversary. The soaring excesses of the
third symphony will be followed by the
Piano Concerto No. 1 played by Emanuel
Ax. No seats left so go for the standing
experience for just 5. 19 August, Royal
Albert Hall. Forget Monday at the Hilton.
OUT OF OFFICE
ZOE STRIMPEL
Ann at the Globe.
Lifestyle | Books
COWBOYS &
ALIENS
READ MARC SIDWELLS
VERDICT TOMORROW
23
VEXED IN THE CITY
SOLVING YOUR
WORK-LIFE
PROBLEMS
The death of
chivalry? Men
arent paying for
dates anymore
DEAR VEXED: I am confused. As a recently
single woman, Ive been dating quite a lot.
Seven out of ten times the man doesnt pick
up the tab on the first date. Is this because
theyre chumps or because they dont know
if Ill see it as infringement on my feminine
liberation? Marsha, 29, human resources
W
HAT a pertinent question you ask. It
gets not just at questions of etiquette
but at the wider issue about male
identity today which is, indeed, rather
confused. This particular change seems to have
happened quickly or at least in the last five
years. Most women I know still prefer or would
expect a date to pick up the tab at least on the
first night out. But men have stopped doing so.
Or rather, its touch and go whether they will or
not. Until quite recently you could count on a firm
offer to pay and if one wasnt forthcoming, dis-
card the man without a second thought.
Now its less clear cut who is a keeper and
who is a stingy, ungentlemanly cretin. Because
some of the most promising men Ive met allow
a splitting of payment at the end of a round of
drinks (I always offer, as do most women.)
My instinct is to hurl mental abuse at such
specimens. But look at the mans position.
Women have taken offense (and rightly so) at
so many formerly accepted features of gender
relations men discriminating against women
at work, men refusing to take our professional
ambition seriously, focusing on physical our
appearance that they may worry that paying
for us will offend us too. A gentlemanly col-
league of mine told me that, having been trained
to be a polite holding-door-open type of man, he
once held the door for his first boss, a woman,
and received a burst of vitriol. And it is confus-
ing: how can we want feminism on one hand
and to be paid for on the other?
Well, we do, and we can have both. Because
were not saying the man should always pay.
But it is a vestige of an old code of manners
that while generally based on ideas that were
ideologically odious where women were con-
cerned did have a thousand times more sur-
face gentility than anything we have today.
So when a man insists on paying today, its
not just romantic and lovely, its polite. Men that
see it as an infringement on womanhood and
the women that agree are getting the wrong
end of the stick. My advice? Find a guy happy to
buy you dinner, no matter how much you each
earn. vexed@cityam.com
I
F youre the sort of person who appre-
ciates Londons classier pub offerings,
the chances are youve been a cus-
tomer of Tom and Ed Martin. The
brothers, a pair of gangly good eggs who
exude bonhomie and serious business
ambition in equal measure, are the opera-
tors of an impressive number of the capi-
tals upper echelon public houses,
including bankers favourite the Gun in
Docklands, the White Swan in Holborn and
the Cadogan Arms on the Kings Road.
Theyre now breaking into the City with
not one but two new openings a few
minutes stroll from each other.
The first, the Chiswell Street Dining
Rooms, is something of a departure for the
Martin boys, in that its not a pub at all but
a hotel restaurant and bar. Its in the new
Montcalm hotel in the former Whitbread
brewery (adjoined to the Brewery confer-
ence centre occupying the rest of the build-
ing) on, you guessed it, Chiswell Street. A
few weeks after opening, City locals have
already adopted this elegant, upmarket
dining room like an old favourite, lapping
up reliably wonderful dishes like Dover sole
and an unctuous snail and bacon pie.
True to type, in the winter Tom and Ed
will be opening a pub in the former Kings
Head just up the same road. It will feature
an open kitchen, a trio of large rotisseries
and some useful private dining rooms.
GASTRO REVOLUTION
The Martin brothers would take no credit
for starting the gastropub revolution they
opened their first venue, Clerkenwells the
Well, in 2000, a good few years after the
term had been coined around places like
the Eagle in Farringdon and the
Westbourne in Westbourne Grove. But in
the past decade what was a ripple in the
pub world has grown to a tidal wave, with
the brothers and their company, ETM
Group, riding on its crest. Has the gastrop-
ub idea reached saturation point though?
Even Centre Parcs is marketing one of
The gastropub kings with
their sights set on the City
its restaurants as a gastropub, says older
brother Tom, 40, with a wry smile. But I
actually like the term, it states exactly what
a place is and its a fact of life now. What
weve ended up with is people being choosy
about where they go, the same as with
hotels and restaurants places that provide
good product and good service are the ones
that do well.
Childhood trips to Kent, when their par-
ents would take the brothers to the local
village pub at weekends, installed the sib-
lings passion for a good English hostelry.
We grew up loving that atmosphere of the
great local pub, and theres really nothing
better in the world, says Tom.
He was working as a solicitor when the
aforementioned Westbourne, which he
lived above, inspired him to go into busi-
ness himself. The Well, on St Johns Road,
was an instant hit, and when Toms origi-
nal partner left the business after a year,
Ed, then fresh from a finance degree at uni-
versity, bought him out. Splitting various
responsibilities between them Ed oversees
beverages and accounts, Tom does food and
marketing theyve grown ETM to a stable
of eight venues, of which the coming City
pub (unnamed as yet) will be the ninth.
COMPETITION
While the pub industry nationally is in cri-
sis, Ed points out that in London its a dif-
ferent story. The hardest thing now is
finding venues, such is the competition
between the various independent opera-
tors and the breweries for spaces to con-
vert. Next year sees them open a cocktail
bar and restaurant in a new Canary Wharf
tower block: Were having to change our
business model to the sorts of sites we can
find, says Ed.
Nor has it escaped their attention that
one of their main competitors, Geronimo
Inns, was last year sold to Youngs for 60m.
Do they fancy following suit?
Absolutely not, says Tom. The fact
that we privately own this business is the
best thing, we dont have to deal with pri-
vate equity or any investors. We just want
to keep growing.
www.chiswellstreetdining.com
Brothers beyond: Tom,
left, and Ed Martin.
Picture: Micha
Theiner / City A.M.
Brothers Tom and Ed
Martin tell Timothy
Barber about their
Square Mile venture
Lifestyle | Food & Drink
24 CITYA.M. 18 AUGUST 2011
Westminster
gets some
cocktail class
W
ITH half of London on holiday there
arent many launches right now, but
there are a few noteworthy openings
that warrant investigation.
First up, Roux at the Pembury. Located in
master chef Michel Rouxs Roux at Parliament
Square restaurant in Westminster, this beau-
tifully refurbished bar offers MPs and punters
alike a classy conceptual cocktail menu ideal
for whiling away an afternoon or evening. The
tasting cocktail menu is divided into Hors
doeuvres, Plats principaux and Dserts
progress from one end to another for a well-
balanced liquid diet. Standout starters, mains
and puddings include the Three Citrus Ricky
(Ketel One citreon, Fino sherry, yuzu, lemon,
pineapple, soda), the Penultimate Word (Don
Julio Blanco, green chartreuse, Talisker, cori-
dander, lime) and the Berry Stinger (port,
crme de framboise, crme de cassis, mint).
For edible sustenance, theres a nibbles-paired
cocktail flight menu in the works.
Over in Bethnal Green, Bistroteque has col-
laborated with famed East End designers
House of Hackney to create a maximalist Gin
Den more awe-inspiring than austere. From
the trippy surrealism of the Victorian-style
wallpaper and lamps to the handsome dark
woods, the venue is a sumptuous enclave ripe
for debauchery.
If you happen to be on the other side of the
capital theres a members club opening that
ticks all the boxes. Situated above Brasa on
Fulham Broadway, Broadway House will offer
discerning Fulhamites a member club treat-
ment more often found in the West End. The
club will be comprised of twin terraces, a
cocktail bar, restaurant, barbecue-equipped
rooftop bar, an array of private function
rooms and even an outdoor cinema.
Speaking of cinema, catch the summer out-
door pop-ups when you can. Queen of
Hoxtons Rooftop Film Club has proved to be
one of the most popular cinematic destina-
tions, while Hackney hipsters have been flock-
ing to Folly for a Flyover to watch a screen
under the A12 underpass over Lea Navigation
Canal. Alternatively, Floating Cinema shows
films on a canal boat itself.
Tim Badham is the founder of Innerplace,
Londons leading providers of VIP entertainment,
including film premieres, fashion shows, launch
parties and members club access. www.inner-
place.co.uk
Roux at the Pembury
The sociable way to barbecue
O
NCE again, this summers been a
dud for barbecue weather. Were still
holding our hopes out for the rest of
August though at time of writing,
the weekend looks like a possible scorcher,
and we may yet make it to one last bank
holiday of sunshine. Fingers crossed.
If by some miracle that does happen,
were hoping for an invite from anyone
happening to have this antidote to one-
bloke-in-charge barbecuing. Brit company
Cole Henley (www.colehenley.com) has
come up with the wonderfully sociable
idea of a table with a barbecue in it the
English summer equivalent of a Swiss fon-
due. At 2,600 for a six-seater, its hardly
cheap, but youll be hosting the best sum-
mer parties for years to come. For more con-
ventional options, the Big Green Egg range
(from 300, biggreenegg.co.uk) has us
charmed with its unusual dimensions
while Webers E20 gas barbecue (429,
johnlewis.com) is a reliable essential. Cole Henleys barbecue table, above. Top right, Big Green Egg. Bottom right, Webers E20.
GOING
OUT
TIM BADHAM
T
E
R
R
E
S
T
R
I
A
L
OUR WAR
BBC1, 10.35PM
Exploring the conflict in Afghanistan
through the words of British soldiers.
This episode focuses on friends serving
with 3 Platoon, 1 Royal Anglian.
TOWN WITH NICHOLAS CRANE
BBC2, 9PM
Geographer Nicholas Crane concludes
his tour of urbanised areas in Great
Britain with a visit to the town of
Totnes in Devon. Last in the series.
COUNTRY HOUSE RESCUE
CHANNEL4, 8PM
New series. Businesswoman Ruth
Watson returns to advise owners of
stately homes on how best to raise
revenue and diversify their property.
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmLive Premier League
Snooker 11pmThe Sky Sports
Years 12amTime of Our Lives
1amTest Cricket 3amPremier
League World 3.30amFIFA
Futbol Mundial 4am-6amTest
Cricket
SKY SPORTS 2
7pmNRL Fulltime 7.30pmLive
Championship Rugby League
9.30pmSuper Leagues
Supermen 10pmTest Cricket
12amChampionship Rugby
League 2am-5.30amPremier
League Snooker
SKY SPORTS 3
7pmGolf 8pmLive PGA Tour
Golf 11pmEuropean Tour Golf
1amPGA Tour Golf 4amGolf
5amAmericas Cup Uncovered
5.30am-6.30amKings of the
Surf
BRITISH EUROSPORT
4pmLive WTA Tennis 10pm
WTA Tennis 12am-12.30am
Triathlon
ESPN
6.45pmLive Womens Super
League Football 9.15pmESPN
Kicks: Extra 9.30pmGoal! 10pm
UFC Unleashed 11pmPlanet
Speed 11.30pmWRC Rally
World 12.30amNHRA Drag
Racing 1.30amESPN Press Pass
2amLive Major League Soccer
4amGoal! 4.30amESPN Press
Pass 5am-6amAFL Review
Show
SKY LIVING
7pmCriminal Minds 8pmTeen
Wolf 9pmBritain & Irelands
Next Top Model 10pmCriminal
Minds 11pmChick Fix 12am
Psychic Sally: On the Road 1am
CSI: Crime Scene Investigation
2.40amMaury 3.30amNothing
to Declare 4.20amCharmed
5.10am-6amJerry Springer
BBC THREE
7pmTop Gear 8pmThe Worlds
Strictest Parents 9pmTulisa
My Mum and Me 10pm
EastEnders 10.30pmThe
Pranker 11pmFamily Guy
11.45pmWilfred 12.30am
American Dad! 2amThe Pranker
2.30amTulisa My Mum and
Me 3.25amThe Worlds
Strictest Parents
4.25am-5.25amCherrys Cash
Dilemmas
E4
7pmHollyoaks 7.30pmHow I
Met Your Mother 8pmFriends
9pmThe Big Bang Theory
9.30pmHow I Met Your Mother
10pmLittle Box of Horrors
10.30pmPhoneShop 11pm
Beaver Falls 12.05amMy Name
Is Earl 1.05amHow I Met Your
Mother 1.30amLittle Box of
Horrors 2amPhoneShop
2.25amGlee 3.10amSmallville
3.55amHeartland 4.40am-6am
Switched
HISTORY
7pmGladiators: Back from the
Dead 8pmIce Road Truckers
9pmPawn Stars 10pmStorage
Wars 11pmDeep Sea Salvage
12amPawn Stars 1amStorage
Wars 2amDeep Sea Salvage
3amGladiators: Back from the
Dead 4amExtreme Trains
5am-6amThe Universe
DISCOVERY
7pmMythbusters 9pm
American Loggers 10pmAttack
of the Giant Jellyfish 11pm
Surviving the Cut 12amBear
Grylls: Born Survivor 1am
American Loggers 2amAttack
of the Giant Jellyfish
3amDeadliest Catch
3.50amMassive Nature 4.40am
Treasure Quest 5.30am-6am
Destroyed in Seconds
DISCOVERY HOME &
HEALTH
7pmA Baby Story 8pmLittle
People, Big World 9pmPregnant
& Impaled 10pmEmbarrassing
Bodies 11pmHospital
Emergency 12amPregnant &
Impaled 1amEmbarrassing
Bodies 2amHospital Emergency
3amLittle People, Big World
4amA Baby Story 5am-6am
Bringing Home Baby
SKY1
7.30pmFuturama 8.30pmThe
Simpsons 9pmTrollied 9.30pm
A League of Their Own 10pmAn
Idiot Abroad 11pmTrollied
11.30pmLaw & Order 12.30am
Caribbean Cops 2.25am
Stargate Universe 3.55amUK
Border Force
BBC2 ITV1 CHANNEL4 CHANNEL5
S
A
T
E
L
L
I
T
E
&
C
A
B
L
E
TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmEastEnders: BBC News
8pmRiots Caught on Camera:
A Crimewatch Special
8.30pmTraffic Cops
9pmTorchwood: Miracle Day
10pmBBC News
10.25pmRegional News
10.35pmCHOICE Our War
11.45pmFILMThe
Gingerbread Man 1998;
Holiday Weatherview
1.40amSign Zone: August Riots
Panorama 2.10amCountryfile
3.10amSaints and Scrounger
6pmEggheads
6.30pmCelebrity Eggheads
7pmThe Culture Show at the
Edinburgh Festival
8pmMonty Halls Great
Irish Escape
9pmCHOICE Town with
Nicholas Crane
10pmHave I Got Old News for
You: With guest host John
Prescott. Last in the series.
10.30pmNewsnight: Weather
11.20pmThe Hour
12.20amThe Culture Show at
the Edinburgh Festival
1.20amBBC News 4.10am-6am
Close
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmFarewell Wootton
Bassett: Tonight
8pmEmmerdale
8.30pmCoronation Street
9pmSingle-Handed
10pmITV News at Ten
10.30pmLondon News
10.35pmRonnie Corbetts Comedy
Britain 11.35pmPiers Morgans Life
Stories: Barbara Windsor
12.30amThe Zone; ITV News
Headlines 2.30amFarewell
Wootton Bassett: Tonight 2.55am
ITV Nightscreen 4.35am-5.30am
The Jeremy Kyle Show
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmCHOICE Country House
Rescue
9pmThe Killing
10pmJaycee: My 18 Years in
Captivity
11.05pmSeven Dwarves 12.05am
Music on 4: V Festival: The
Countdown 12.50amThe Album
Chart Show: Spotlight 1.05am
Hollyoaks Music Show1.30amCast
Offs 2.25amSex Education Show
3.20amHill Street Blues 4.10am
Brothers & Sisters 4.55amCookery
School 5.50am-5.55amSali Mali
6pmMeerkat Manor
6.25pmOK! TV
6.55pm5 News at 7
7pmCricket: 5 News Update
8pmNew Cowboy Builders: 5
News at 9
9pmCelebrity Big Brother:
Live Launch
10.30pmCelebrity Big
Brothers Bit on the Side
11.30pmComedy Kings: Best of
Just for Laughs 12amInside
Hollywood 12.05amSuperCasino
3.55amMeals in Moments 4.05am
New Cowboy Builders 4.55am
Rough Guide to Activity Holidays
5.10amWildlife SOS 5.35am-6am
House Doctor
1 2 3 4 5 6
7 8
9
10 11 12
13
14 15
16
17 18 19
20 21
9 13 23
45
15 15
14 8
9 7 6
45
15 9 21
12 11
35 3
45
6 4 7
17
30
10
28
14
16
6
27
10
16
7
8
19
34
5
13
15
11
20
40
16
11
4
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 Temporary love of an
adolescent (5)
4 Tall perennial grasses (5)
7 Barrier constructed to
keep out the sea (4)
8 Look up to (6)
9 Crippled (4)
10 Go by boat (4)
12 Dribble (4)
13 Unit of energy equal
to 4.2 joules (7)
14 Large container for liquids (4)
15 Behind schedule (4)
16 Digestive juice secreted
by the liver (4)
17 Imaginary place
considered perfect (6)
18 Fourth planet from the sun (4)
20 Brought to a conclusion (5)
21 Island in the
Mediterranean (5)
DOWN
2 Column of
light (3)
3 Emanating
from stars (7)
4 Went on
horseback (4)
5 Former province
of northern
Ethiopia (7)
6 Always watchful
and alert (9)
7 State of being
held in low
esteem (9)
8 Pungent gas
compounded
of nitrogen and
hydrogen (7)
11 Freezing (3-4)
12 Quandary (7)
16 Avian creature (4)
19 Furrow (3)
E
U
E
N
D C
N
O
D

4


4
C H O K E C R A M P
H V S I R G A
A M A S S E R A N
O C A T S E T
S C A R Y T E E N S
A U T O
A D O B E S H O R E
Z U B R A E M
T A T O D R A M A
E E N I L D I
C A R R Y Y O D E L
8 9 6 8 9
5 3 1 2 4 1 2 3
7 1 5 9 3 7 6 8
9 6 7 5 6 8 9
8 4 9 9 2 4
2 5 8 7 1 3 4
1 4 2 5 8 2
7 6 8 9 2 6 3
4 2 3 6 7 1 3 1
5 3 6 9 8 6 7 4
1 2 7 8 9
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
INANIMATE
Lifestyle | TV&Games
25 CITYA.M. 18 AUGUST 2011
Sport
26
CAPTAIN Andrew Strauss has
revealed his fear of England becom-
ing a laughing stock again is behind
his unrelenting quest for improve-
ment even now his side are No1 in
the world.
Strauss has told his players he
expects no let-up as they go in search
of a 4-0 series whitewash in the final
Test against India at The Oval, which
starts this morning.
They may have replaced the
tourists at the top of the internation-
al rankings, but the Middlesex opener
remembers all too well the indiffer-
ent performances of England sides
during his formative years.
Its not just our play on the park,
the whole structure and set-up has
improved dramatically. The days of
English cricket being kind of a laugh-
ing stock have gone for good, we
hope for all sorts of reasons, said
Strauss, who expects paceman James
Anderson to be passed fit.
The challenge for us all is to make
sure that continues. Its not a time to
take the foot off the gas and be satis-
fied with ourselves.
Strauss: We
wont be a
joke again
WORLD CUP winner Ben Cohen has
warned England they cannot afford
to dwell on setbacks in the run up to
next months tournament, after
scrum-half Danny Care was ruled out
with a toe injury.
Care, who was tipped by some to be
first-choice No9 in New Zealand, faces
a six-week lay-off after surgery today
on a joint in his left big toe that he
damaged on Saturday.
The Harlequins stars absence is
another blow to England manager
Martin Johnson, who was already
fuming over the weekend defeat to
Wales, in which his side dominated
but sorely lacked a cutting edge.
But former winger Cohen, who
played alongside Johnson in 2003
before retiring this year, believes
England are still in good shape to
reach the World Cup last four and
must quickly regain their focus.
It is a loss but one they cant get
hung up on, he told City A.M. Its dis-
appointing but youve got to make
that step forward. As a player on the
team, youve got to wipe your mouth
and carry on.
Lets not get carried away. These
are only warm-up games. Theyve had
two games to really finalise and nail
their team before they go against
Ireland and then out to New Zealand.
You cant read too much into your
warm-up games the last one you
can, but not the other ones. Care
admitted yesterday he was absolute-
ly devastated while Johnson, who
trims his squad from 39 to a final 30
on Monday, called the news really
disappointing.
It means Ben Youngs, who is him-
self recovering from injury, is almost
certain to start at scrum-half, with
Richard Wigglesworth likely to edge
out Joe Simpson as back-up.
Cohen believes England will miss
Cares dynamism a quality in short
supply at the Millennium Stadium
and has urged Johnson to pick veter-
an Jonny Wilkinson ahead of Toby
Flood at fly-half.
Care injected pace into the game,
we noticed that at the weekend when
he came on. He taps and goes, sud-
denly making the break and getting
in behind defences, and thats what
you want from a good No9, like Matt
Dawson used to, he added.
Id go Wilkinson and then Flood
he gives them an extra edge in attack.
Theres nothing wrong individually
with these players but theyre not
gelling in midfield, which is a con-
cern. You see it in their attack, where
theyre not ambitious enough. Id like
a more expansive game with
Wilkinson at No10 and Flood at No12,
and a power runner at No13. Its a
headache for Martin Johnson.
The RFU, together with O2, is encourag-
ing the country to show its support for
England this summer and Choose
Rugby. Visit www.rfu.com/ChooseRugby
and get involved by playing, coaching or
volunteering at your local club.
England must
refocus after
Care setback,
warns Cohen
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LONDON IRISH v HARLEQUINS KO 2PM
SARACENS v LONDON WASPS KO 4.30PM
Strauss (above) expects to have Anderson fit
for todays Test. Picture: ACTION IMAGES
Care has been
ruled out for six
weeks and will
miss the World
Cup. Inset: Cohen
Picture: PA
BY FRANK DALLERES
CRICKET

BY FRANK DALLERES
EXCLUSIVE

FULHAM boss Martin Jol has played

down tensions with Juande Ramos as
he prepares for tonights Europa
League play-off against Dnipro the
team now managed by the man who
infamously replaced him at
Tottenham.
I dont want to focus on the coach.
Hes important, but not that impor-
tant. Same as me, said Jol, whose side
are at home for tonights first leg.
But the Dutchman added mischie-
vously: He was there [Spurs] for 10 or
11 months and moved on and then
ended up in Ukraine. So its some-
thing to think about.
Jol prepares to
take on Spurs
nemesis Ramos
FOOTBALL

email sport@cityam.com
27
EMBATTLED Arsenal manager Arsene
Wenger is set to discover today whether he
is to be charged with breaching the terms
of his touchline ban during Tuesdays win
over Udinese.
Wenger, who watched the Champions
League play-off from the directors box,
landed in hot water for passing orders to
coach Boro Primorac, who phoned them
through to the bench, where assistant Pat
Rice was in charge.
Uefa delegates told Wenger to stop at
half-time an order that perplexed
Arsenal, who believed they had been
cleared to operate the system following a
meeting with the European governing
body on Monday.
A decision rests on whether the referee
or delegates accuse Wenger of breaking
rules in their reports, which arrive today.
Even if he is given the benefit of the
doubt, he is still likely to incur a fine for
failing to speak to the media after the 1-0
first-leg win.
Midfielder Alex Song has received a
three-match ban for violent conduct from
the Football Association, meaning he joins
Gervinho in missing games with Liverpool,
Manchester United and Swansea.
Forward Samir Nasri is expected to final-
ly complete his move to Manchester City
today or tomorrow. City are understood to
be paying 25m for the France star, who
stood to leave for nothing next summer.
Song banned while Wenger
sweats as Uefa mull charge
BY FRANK DALLERES
FOOTBALL

TOTTENHAM manager Harry Redknapp

admits he is taking a gamble in attempt-
ing to pull off the controversial loan sign-
ing of Manchester City striker Emmanuel
Adebayor.
The Togo forward comes with huge
baggage; an unpopular figure with Spurs
fans due his past at bitter rivals Arsenal,
he has fallen foul of City boss Roberto
Mancini despite a bright start.
But Redknapp, who is looking for
attacking reinforcements after offloading
Robbie Keane to LA Galaxy this week,
believes the potential benefits of landing
Adebayor, who could arrive before the
weekend, make it a gamble worth taking.
If he comes and plays as he can play,
he could be fantastic for us. If he comes
and doesnt perform, its only a loan and
its not the end of the world, said
Redknapp.
He went to Real Madrid last year and
he murdered us out there [when Spurs
met Real in the Champions League].
When he was at Arsenal, when he was
really on his game, he was unplayable. We
just hope he comes here and is in that
type of mood.
Ive spoken to lads who have played
with him and against him and they all
feel he could be a big success. It is a gam-
ble but, unless youre going to pay 35m
for Sergio Aguero and pay him 250,000 a
week, youve got to take a chance.
Redknapp maintains he wants to keep
Luka Modric, despite big-money offers
from Chelsea, although the playmaker
has been left out of tonights Europa
League play-off at Hearts, with the club
citing an injury.
Spurs are short in midfield for their
first game of the season, while Hearts
should be sharper having been in compet-
itive action since July, and captain
Michael Dawson has warned against a
repeat of last years Champions League
play-off scare in Switzerland.
That first half-hour at Young Boys was
a disaster and couldve cost us dearly, he
said of a match in which they trailed 3-0
and lost before progressing on aggregate.
Weve got to make sure we go out all
guns blazing and make sure were ready
and focused, because they will be.
BY FRANK DALLERES
FOOTBALL

Adebayor loan is a gamble

worth taking, says Redknapp
Adebayor shone for Real Madrid against Spurs last season. Picture: ACTION IMAGES
Results
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SPORT | IN BRIEF
QPR ownership resolution expected today
FOOTBALL: QPR are expected to make an announce-
ment this morning amid speculation Malaysian busi-
nessman Tony Fernandes is about to complete his
takeover of the Premier League newcomers. AirAsia
founder and Lotus F1 boss Fernandes is poised to buy
a majority stake from Formula One chief Bernie
Ecclestone.
Murray beats Nalbandian in Cincinnati
TENNIS: British No1 Andy Murray boosted his US
Open preparations with a 6-4, 6-1 victory over David
Nalbandian at the Western and Southern Open in
Cincinnati last night. Davis Cup aside, the win was
Murrays first since Wimbledon, following his shock
defeat to Kevin Anderson in Toronto last week.