Cityam 2011-10-11

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FTSE 100 5,399.00 +95.60 DOW 11,433.18 +330.06 NASDAQ 2,566.05 +86.70 /$ 1.57 +0.01 / 1.15 t-0.01 /$ 1.36 +0.02
BlackBerry
server fail
hits millions
MILLIONS of BlackBerry users across
Europe, Africa and the Middle East
lost access to data services yesterday,
in what one industry insider
described as one of the biggest out-
ages he has ever seen.
Customers across all major net-
works were unable to access emails,
Messenger or internet services from
11am yesterday morning. Email serv-
ices were restored by 10pm but other
technical problems continued.
City A.M. understands Canadian
phonemaker Research In Motion
(RIM) could now be liable to pay com-
pensation to the networks, which will
have lost out on valuable data traffic.
It is understood the problem has
been traced to a server in Slough,
although RIM would not confirm this
last night. The company said it was
aware of the problem and that it is
investigating, without going into any
detail.
Complaints flooded in from as far
afield as Egypt and Bahrain.
Sources at the major UK networks
said they were as in the dark as their
customers and were battling to keep
users up to date. It appears that some
corporate customers were unaffected.
RIMs shares, which have lost two
thirds of their value since February,
fell 0.56 per cent to $23.23 yesterday.
The long-term decline, sparked by
a perceived inability to keep pace
with rivals Apple and Google, has
given birth to rumours RIM could
be a takeover target.
BY STEVE DINNEEN
TELECOMS
George Osborne called on Eurozone countries to accelerate the pace of bailouts Picture: REX
EUROZONE leaders scrambled to bail
out another two banks yesterday after
unveiling a 4bn (3.5bn) rescue of
Dexia, the bankrupt Belgian lender.
The EU was also forced to postpone a
summit scheduled for next Monday in
order to give politicians more time to
allow [us] to finalise our comprehen-
sive strategy to bail out banks,
Brussels said.
But the failure of two more banks
yesterday showed that time is running
out: Denmarks Max Bank and
Greeces Proton Bank both sought gov-
ernment aid to avoid collapse, follow-
ing the bailout for Dexia agreed on
Sunday that will see Belgium,
Luxembourg and France guarantee up
to 90bn in losses.
Max Bank, which was felled by prop-
erty loan write-downs, will see its toxic
assets taken over and guaranteed by
the Danish government, while
Sparekassen Sjaelland snaps up its
good assets. Proton Bank was also split
in two, with its losses underwritten by
Greeces new 30bn bank bailout fund.
Chancellor George Osborne called
on Eurozone countries to accelerate
the pace of bailouts and to set out the
backstops they have in place to raise
capital or provide public capital if
they cannot.
Despite arguing that Europe should
pursue a mass rescue, he boasted the
BAILOUT FRENZY
FOR EURO BANKS
BY JULIET SAMUEL
BANKING
www.cityam.com Issue 1,486 Tuesday 11 October 2011 FREE

TURMOIL
HITS JOBS
BRITAINS BIG
SQUEEZE ON PAY
AND HIRING P8
THE BEST FOODS TO FIGHT
YOUR WINTER COLD
HEALTH & BEAUTY P30
BUSINESS WITH PERSONALITY
coalition had reduced the bailout
guarantee enjoyed by British banks.
This is the direction policy should be
moving in, he claimed. And he repeat-
ed his call for the Eurozone to move
towards greater fiscal integration to
underpin the single currency.
In a sign that the debt crisis is tak-
ing its toll, Eastern Europes second
biggest lender, Austrias Erste Group,
was forced to postpone paying back a
bailout loan early due to the uncer-
tainty. It was also hit by 1.5bn in
write-downs, triggering a 9.2 per cent
plunge in its stock despite overall equi-
ty gains yesterday.
China also joined the bailout frenzy,
grabbing equity in four of its major
lenders to shore them up against a
slowing property market. It was not
clear how much its sovereign fund had
spent on the shares.
The growing enthusiasm for pour-
ing money into bank rescues comes
despite suggestions that it will have a
limited impact on the fundamentals
of the euro crisis. Moodys said yester-
day that even if Europe agrees on a
regional bailout scheme, any relief...
would be brief. MORE: P4-5
Certified Distribution
01/08/11 till 28/08/11 is 92,745
News
2 CITYA.M. 11 OCTOBER 2011
Vickers: UK
banks to stay
NO BANK will leave the UK as a result
of the Independent Commission on
Bankings (ICB) proposals, its chair Sir
John Vickers claimed yesterday.
But his fellow ICB members broke
ranks to suggest that other measures
such as the UKs balance sheet levy for
banks could make lenders reconsider
their domicile.
During the hearing of four ICB
members before the influential
Treasury select committee of MPs yes-
terday, a clear division arose between
ICB members who believe that the
treasury should repeal the levy and
those who support keeping it in place.
Bill Winters said the government
should reconsider everything it has
put in place since the financial crisis
in light of the ICB report.
If [the levy] was intended to remove
the implicit subsidy from the banking
sector then were dealing with that
elsewhere and the levy should be
removed, he said, referring to the
implicit subsidy banks get from a
perceived government guarantee to
bail them out.
However, Vickers and ICB member
Martin Wolf suggested the levy had
other benefits, such as raising cash for
the government and, according to
Wolf, making up for financial services
being under-taxed. The Treasury had
originally suggested that the levy was
to make up for the implicit subsidy.
BY JULIET SAMUEL
BANKING
Anti-Keynesians win the Nobel prize

THERE are two kinds of non-Keynesian
economists these days. The first catego-
ry includes those such as Thomas J
Sargent, a member of the new classical
school of economics, who yesterday
was awarded the Nobel Prize in eco-
nomics, jointly with Christopher Sims,
a econometrics guru who among
other achievements demolished the
traditional graphical Keynesian con-
struct taught to all economics, finance
and MBA students.
Their mathematical models took
the economic profession by storm,
with a renewed focus on expectations
and the microeconomic foundations
of economic fluctuations and growth.
I still remember studying Sargents
textbook you needed years of
advanced mathematics to be able to
get to grips with it.
Both economists warned that profli-
gate governments usually cause infla-
tion; when budget deficits are massive,
there is no difference between fiscal
and monetary policy as governments
simply print money to pay for spend-
ing. Sargent (together with others) also
brilliantly helped to show that policy-
makers cannot fool everybody all of
the time by increasing inflation (and
tricking people into thinking that
demand has genuinely increased).
Those findings have been forgotten by
many governments and central
bankers.
Nobody listened to Sims when he
almost exactly predicted the Eurozone
crisis: in 1999, he argued the euros fis-
cal foundations were precarious and
that a problem in one member state
would likely breed contagion effects
in other countries. A few years later,
he warned the ECB would have prob-
lems with its balance sheet, another
forecast which has come to pass.
Fiscal stimulus advocates keep cit-
ing left-wing Nobel laureates such as
Paul Krugman or Joseph Stiglitz but
they wont find much that pleases
them in Sargents work. He has sav-
aged Barack Obamas stimulus pack-
ages, warned that his social policies
would actually increase unemploy-
ment and has explained why deposit
insurance and other forms of govern-
ment guarantees made it rational for
bank shareholders (and depositors) to
condone excessive risk-taking.
Yet while many of Sargent and Sims
contributions were fascinating, the
methods they pioneered took thinking
down a dangerous blind alley and
towards ever more extreme mathe-
matical approaches to economics. Part
of the problem was that it was the
wrong kind of maths: the system por-
trayed was too deterministic and insuf-
ficiently chaotic. It was also easy to
disastrously misuse their models,
which is what many banks and regula-
tors ended up doing during the crisis.
While a lot of the new classical econ-
omists conclusions were right, and
they did actually warn about bubbles,
the way they reached them and their
methodology and philosophical
understanding of the limitations to
knowledge were flawed. People arent
as rational as they assumed. They also
wrongly downplayed the role of the
money supply in causing cycles.
Hence why I find the second catego-
ry of non-Keynesian economics more
interesting: the latest incarnation of
the more traditional classical school,
including the better Austrian thinkers,
whose conclusions are similar but
whose approach is much more realis-
tic. Keynes was wrong, as yesterdays
Nobel prize winners rightly point out,
a lesson many need to rediscover. But
he wasnt always wrong for the rea-
sons Sargent and Sims thought.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
PRIME MINISTER David Cameron said
yesterday that Liam Fox made serious
mistakes in his dealings with Adam
Werritty but backed his embattled
defence secretary pending a full
report into his conduct.
Camerons comments came after an
interim report on Foxs ties with
Werritty a close friend who has no
official post within the government
found that the two men had met 40
times over the past 18 months, which
was more than previously acknowl-
edged. At least one meeting involving
a foreign official was inappropriate.
A spokesperson for the Prime
Minister said: It is clear ... that serious
mistakes were made in allowing the
distinction between professional
responsibilities and personal loyalties
to be blurred, raising concerns of con-
flicts of interest.
Camerons office said his support
still stands at least until the full
report is published later this month.
BY KASMIRA JEFFORD
POLITICS
Cameron backs Liam Fox

US STOCKS soared yesterday as
investors bet on a pledge by Germany
and France to unveil new measures to
solve the European debt crisis by the
end of the month.
Following weeks of intense swings
in the stock markets, the Dow Jones
industrial average closed up by 330.06
points, or 2.97 per cent, to end at
11,433.18.
The Standard & Poors 500 Index
climbed 3.41 per cent, while the
Nasdaq Composite Index leaped by
3.5 per cent to close at 2,566.05.
Financials stocks led the rally, with
JP Morgan Chase & Co up four per
cent to $31.94 and Bank of America
gaining 4.9 per cent to $6.20.
Meanwhile the euro had its biggest
rise against the US dollar in 15
months.
US stocks rally
on Eurozones
rescue pledge
Defence secretary Dr Liam Fox apologised to parliament yesterday
MARKETS
EDITORS LETTER
ALLISTER HEATH
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Asked if banks could
leave due to the ICBs
suggested policies, Sir
John Vickers said: The
short answer is no.
4th Floor, 33 Queen Street, London, EC4R 1BR
Tel: 020 3201 8900 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Jo Simpson
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
TOUGH CARE HOME REGULATIONS
PROPOSED
The government is considering a
series of tough regulations for resi-
dential care homes following the col-
lapse this year of Southern Cross, the
UKs biggest home operator. The
measures, outlined yesterday for con-
sultation, include requiring compa-
nies to post capital upfront as a
condition of their licence, and giving
councils and regulators the power to
intervene in the management of
homes if they come under the threat
of closure.
AVERAGE HOUSEHOLD FACES FUEL
POVERTY BY 2015
The average household will be in
fuel poverty by the next election in
2015 if energy bills, which have
almost doubled as a share of median
income since 2004, stay on their cur-
rent path.
STANDARD CHARTERED BANKER
ATTACKS WESTERN REGULATORS
One of Standard Chartereds most
senior executives has sharply criti-
cised western regulators for using the
wrong mechanisms to deal with the
financial crisis, granting free rein to
Asian markets where there has been a
bias towards growth-focused regula-
tion. In the west, everything seems
to create more uncertainty, said
Steve Bertamini, head of retail and
SME banking at Standard Chartered,
which generates the bulk of its busi-
ness in Asia. In many cases, you see
regulators trying to outdo each other.
Where is it going to stop?
CHINA DETAINS WALMART STORE
MANAGERS
Walmart, the US retailing giant, has
been ordered to close seven stores in
south-western China after police
detained a number of store managers
following allegations that employees
labelled the firms ordinary pork as
organic.
WHO NEEDS SILICON VALLEY WHEN
YOUVE GOT THE V&A?
California may be the throbbing
heart of the global technology indus-
try but Silicon Valleys stultifying cul-
tural attractions mean that London is
a better home for creative types,
according to one of the industrys
most influential players. Jimmy
Wales, who founded Wikipedia a
decade ago, now spends half the year
in London.
JONGLEURS HEADS FOR CITY AND
NEXT STAGE OF COMEDY REVIVAL
Have you heard the one about the
psychotherapist daughter of Polish
refugees who wants to float her com-
edy club business on the stock mar-
ket? Maria Kempinska, the founder of
Jongleurs, will today unveil plans to
raise at least 500,000 through a pri-
vate placing before an expected AIM
listing in the next 12 to 18 months.
DOCUMENTS FROM RUSSIAN BP OFFICE
RAID CANNOT BE USED IN TNK-BP
LAWSUIT, RULES COURT
Documents seized from BPs offices
during a series of raids by masked
bailiffs cannot be used as evidence, a
Russian court has decided. The ruling
is a rare victory for BP in Russia, after
a tumultuous year that has seen the
collapse of its 10bn deal with state oil
company Rosneft.
INVESTORS UNAWARE THAT MANY
CAUTIOUS BRANDED FUNDS ARE
RISKY, SAY NINE IN 10 FINANCIAL
ADVISERS
Many so-called cautious managed
funds do not live up to their name.
Research by Skandia revealed that
most investors would score cautious
funds as a two or a three out of 10 for
risk. But most cautious funds actually
carry a risk score of five or six, with
some scoring even higher.
TATA COFFEE AND STARBUCKS NEAR
DEAL FOR STORES
Indians could soon be sipping cups of
coffee and chatting at Starbucks out-
lets, as the US chain sets out to perk
up global sales by making a long-
awaited entry into one of the world's
fastest-growing economies. Starbucks
could over the next three weeks
announce an alliance with Tata
Coffee to open stores in India, a per-
son familiar with the matter said yes-
terday.
CHRYSLER AND UAW RESUME TALKS
Contract negotiations between
Chrysler Group and the United Auto
Workers union will resume today
after a short break Monday following
late night bargaining sessions over
the past three days. Negotiators for
the auto maker and the union are
scheduled to resume their talks in
Michigan today.
WHAT THE OTHER PAPERS SAY THIS MORNING
THE NEW generation of baby
busters faces an uphill struggle to
match the housing and pension
wealth accrued by their baby
boomer generation parents.
This is the legacy handed down by
the early 1960s baby boomers to the
generation of students just starting at
university, according to the report
published today by PwC.
People born in the early 1990s will
fail to get onto the property ladder
until their 35th birthdays and be lum-
bered with around 90,000 in student
debt, on average, the report said.
The baby busters are also set for
significantly less generous pensions
than their parents enjoyed.
To make up for the harmful legacy,
many parents are set to provide gener-
ous levels of inheritance to their off-
spring assuming this excess wealth
does not get eaten up by long term
care costs, PwC warned.
A higher state pension age for the
remainder of the baby boomer gener-
ation could help redress the cross-gen-
erational imbalance, the report
suggests. Taxes on housing wealth
would also reduce the burden of taxa-
tion on the new generation, PwC said.
However, economic growth and
technological progress mean that the
latest generation will be better off
than their parents in terms of
absolute wealth.
They will enjoy a greater volume
and variety of goods and services, the
study said.
Britons born in the early 1990s are
likely to live around five years longer,
on average, than people born in the
1960s, the report noted.
At age 65, the baby busters total
wealth is projected to be higher, in
absolute terms, at around 1.9m, com-
pared with the baby boomers at
around 1.6m, the report said.
Yet relative to average earnings in
society at those two dates, the baby
busters comparative wealth is project-
ed to be around 25 per cent lower
than that of the baby boomer.
Baby boomers
make way for
baby busters
THE BENEFITS for taxpayers of a safer
financial system will far outweigh the
temporary hit to economic growth of
imposing tough new capital rules on
top banks, a committee of internation-
al regulators concluded yesterday.
The report, published yesterday by
the Bank for International Settlements
in Basel, claimed that increasing the
extra capital banks are required to
hold by one percentage point over
eight years would cut economic
growth by less than 0.01 per cent per
year during the phase-in period.
Extra capital buffers are likely to
have at most a modest impact on
aggregate output, while the benefits
from reducing the risk of damaging
financial crises will be substantial,
the Basel Committee and the Financial
Stability Board said in a statement.
Both bodies have approved the bank
capital surcharge plan that leaders of
the worlds top 20 economies (G20) are
set to endorse in November.
Banking industry bodies, however,
warn that piling capital requirements
on lenders will cut their ability to aid
economic growth.
Under new rules, a surcharge of one
to 2.5 per cent -- the amount depend-
ing on five factors like complexity and
international reach -- will be intro-
duced from 2016 over three years.
BIS says bank
buffer worth
economic hit
Lastminute.com sells tickets for West End shows including Wicked
BY JULIAN HARRIS
ECONOMY
REGULATION
News
ONLINE travel firm lastminute.com
has cut its losses despite suffering a
grim year caused by the volcanic ash
cloud and strikes by airline crews.
The private equity-owned firm
increased turnover by 6.45 per cent
to 49.14m and cut costs as it tackled
the consumer spending slump.
Operating losses narrowed 77 per
cent to 10.26m, according to the
2010 accounts of Last Minute
Network, which did not return calls.
The directors report states:
Trading was put under pressure by
a number of external factors during
the year, including the Icelandic vol-
canic ash cloud, strike action by air-
line personnel, severe winter weath-
er and the disruption and consumer
uncertainty that these events result-
ed in.
The firm, which sells tickets for
events such as West End shows as
well as holidays, was set up by Brent
Hoberman and Martha Lane Fox in
1998.
It floated in 2000 and survived the
dotcom industry collapse before
being taken private by travel compa-
ny Sabre in a 577m deal in 2005.
Fox, who was nearly killed in a car
crash in 2004, is now the govern-
ments digital champion and a non-
executive director of Marks &
Spencer and Channel 4.
BY PETER EDWARDS
LEISURE
Lastminute trims losses

A FIRE SALE of Dexia assets was
underway last night after France,
Belgium and Luxembourg agreed to
spend 90bn (78.45bn) on a bailout
for the crippled banks ailing bonds
unit.
The break-up of the group will see
Dexia Bank Belgium, the largely retail
division, sold to Belgium for 4bn.
Dexia is also seeking backing from
the banking arm of Frances post
office and its sovereign wealth fund
Caisse des Depots and is in negotia-
tions to sell BIL, the Luxembourg divi-
sion, to a minority-majority
partnership of the Grand Duchy and
the Qatari royal family. Yesterday the
Qataris also bought the private bank-
ing arm of Belgiums KBC.
The future of Dexias other units
remains uncertain, with its stake in
Turkish lender Denizbank and RBC
Dexia Investor Services, its global
joint venture with Royal Bank of
Canada, likely to be subject to bids. It
was on Denizbank in particular that
Dexia chief executive Pierre Mariani
had pinned his hopes for growth.
The initial sales were agreed yester-
day after a 14-hour board meeting.
The capital injection will be used to
provide support for 10 years to the
bad bank the business that con-
tains 95.3bn of poorly performing
bonds which is being retained by
Dexia. Its portfolio includes 7.7bn in
junk bonds and 7.4bn in mortgage-
backed securities tied to the US.
Belgium is contributing 54.45bn,
France 32.85bn and Luxembourg
2.7bn.
Dexia needed help after being shut
out of the wholesale funding market,
upon which it relied to finance its
long-term loans to local authorities in
France and Belgium, and because of
its 3.5bn of exposure to Greece.
It comes only three years after it
received a 6.4bn bailout from
Belgium, France and Luxembourg.
Shares in Dexia resumed trading
yesterday and closed down 4.7 per
cent at 0.81.
Dexia saved
as fire sale of
assets begins
BY PETER EDWARDS
BANKING
THE BAILOUT of Dexia has further

weakened Belgiums chances of avoid-
ing a downgrade of its government
debt, ratings agencies warned.
The central European nation has
spent nearly 60bn on shoring up
Dexia and buying its Belgian retail
arm, just three days after Moodys
warned of a possible downgrade.
After the Dexia bailout was
finalised yesterday Belgian Prime
Minister Yves Leterme hailed the deal
for the fair division of the costs.
That sentiment has not reassured
ratings agencies, however. Douglas
Renwick from Fitch said: The cost to
the Belgian government of supporting
Dexia is not insignificant and high-
lights one of Belgiums rating weak-
nesses, namely its large banking sector
and the contingent liability this poses
to the state.
Fitch and Standard & Poors both
currently have AA+ ratings on
Belgium and on Friday Moodys said it
had placed the nations Aa1 govern-
ment bond ratings on review.
Belgiums debt-to-GDP ratio was
96.2 per cent last, which was worse
than all Eurozone members apart
from Greece, Italy and Ireland.
Moodys has also placed numerous
Belgian firms, including SNCB and
Infrabel, as well as some of the coun-
trys regions, on review for possible
ratings downgrades.
BY PETER EDWARDS
SOVEREIGN DEBT
News
ANALYSIS l Dexia SA
Aug Sep Oct

2.00
1.50
1.00
0.81
10 Oct
96 billion
Short-term funding at
the end of June 2011
3.46 billion
Greek sovereign debt
exposure at the end of 2010
15 billion
Italian debt exposure at the end of 2010
3.6 billion
Expected loss on future asset sales
6.4 billion
Dexia bailout from Belgium, France
and Luxembourg in 2008
$26.5 billion
Dexia borrowed from the
Federal Reserves discount window
on 29 October 2008
ANALYSIS l State guarantees for Dexia
France: 32.85bn
Belgium: 54.45bn
Luxembourg: 2.7bn
54.45bn
32.85bn
2.7bn
TIME LINE | DEXIA SEES PAST FINANCIAL WOES RESURFACE
September 30 2008
Belgium, France and Luxembourg agree to
inject 6.4bn to rescue the bank.
November 2008
Dexia obtains 150bn worth of state guar-
antees from Belgium and France.
September 18 2009
Belgium, France and Luxembourg renew
their state guarantees for Dexia but lower
the overall amount down from 150bn to
100bn.
August 4 2011
Dexia reports its worst-ever loss, hit by its
exposure to Greece.
October 3 2011
Moody's puts Dexia on review for a down-
grade. Shares close 10.16 per cent lower.
October 4 2011
France and Belgium say they will take neces-
sary measures to guarantee Dexias financing
October 6 2011
Dexia shares suspended.
DEXIA BY NUMBERS
60bn bailout bill heaps
pressure on Belgian state
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www.cityam.com
Grand rescue plan is certain to fail
Markets are on tenterhooks to see
how the Eurozones new merry-go-
round of money, known as its bank
recapitalisation scheme, is going to
work.
And following yet another delay
in the unveiling of the plan with
Mondays summit pushed back a
week and few details likely until
November they will be waiting a
little longer.
The IMF has put the cost of a
grand rescue at 200bn. Credit
Suisse says it could cost up to double
that, which would make Dexias
4bn rescue a one per cent tip of the
iceberg.
And that doesnt include the
potential cost of underwriting
banks dodgy assets, which Belgium
and France have guaranteed to the
tune of 90bn for Dexia alone.
So what are those dodgy assets? In
large part, they are government
bank bonds.
And therein lies the problem. The
only way for indebted governments
to bail out banks is for them to issue
more debt, further boosting the risk
that they will default on the bonds
banks already hold.
No wonder analysts are conclud-
ing that a mass bailout will, at best,
buy time to deal with a liquidity cri-
sis.
But the underlying problem,
according to both Moodys and UBS
banks analyst Alistair Ryan, is sover-
eign solvency. Ryan wrote on Friday:
What banks collectively need, in
our opinion, is the return of Italian
and French default risk to the
remote possibility they were consid-
ered before Greek [private-sector
burden-sharing] Capital is not, in
general, the core of the issue.
Hardly music to Merkozys ears.
BOTTOMLINE
Analysis byJuliet Samuel
ANALYSIS l Dexias sovereign exposures (as at March 2011)
m
3
,
4
7
0
m
3
,
4
6
9
m
1
m
0
1
5
,
5
9
9
m
1
4
,
8
7
4
m
1
,
8
3
0
m
1
,
4
5
0
m
1
,
4
3
8
m
1
3
m
1
,
5
0
3
m
1
,
8
3
0
m
0 0 0
Greece Ireland Italy Portugal Spain Total
50000
40000
30000
20000
10000
0
Total sovereign exposure includes countries not listed here
Total Banking book Trading book
4
9
,
7
1
1
m
4
8
,
2
0
8
m
7
2
5
m
WHO IS STEPPING IN TO HELP DEXIA?
Belgium
- paying 4bn to buy Dexia Bank Belgium, the
largely retail Belgian division
Luxembourg
- in talks to buy minority stake in Luxembourg unit,
with Qatari royal family set to take majority stake
France
- Dexia seeking backing from state-owned Caisse
des Depots and La Banque Postale
Dexia retains:
- 95.3bn bonds (including 7.7bn junk bonds and
7.4bn mortgage-backed securities)
- asset management business
- no sale planned: Dexia Sabadell (Spanish), Dexia
Crediop (Italian), DKD (Germany)
Fate unknown
- Dexia's stake in Turkish Denizbank
- Dexia's stake in RBC Dexia Investor Services
(global joint-venture with Royal Bank of Canada)
EMERGENCY overnight lending from
the European Central Bank remained
in demand, while overnight deposits
hit a new 15-month high, figures
showed yesterday, a sign of strains in
bank funding markets.
Banks took 2.8bn (2.4bn) from
the 17-country bloc central banks
expensive overnight lending facility,
where they have to pay 2.25 per cent
interest, compared with Fridays 0.919
per cent at the interbank markets.
Overnight borrowing topped 1bn
for the sixth day in the row and is like-
ly to stay high until at least tomorrow,
when banks get funds in the ECBs
weekly refinancing operation.
At the same time, overnight
deposits jumped to their highest level
since late June of last year, topping
255bn.
Banks are increasingly concerned
about lending funds to each other as
the European sovereign debt crisis
worsens.
The implosion of Belgian lender
Dexia, the first bank to fall victim to
the two-year-old Eurozone debt crisis,
has added a sense of urgency to the
talks.
Also putting pressure on the banks
is Greeces ongoing negotiations with
the troika its lenders at the EU, the
IMF and the ECB which are expect-
ed to end today.
After a long series of talks and
meetings with representatives of the
troika, we have concluded the circle
of scheduled meetings and the mis-
sion is expected to be concluded by
[Tuesday], Greek finance minster
Evangelos Venizelos said yesterday.
The EU, IMF and ECB mission
chiefs, are likely to conclude their
visit by issuing a joint statement
today. Back in Brussels and
Washington, they will prepare reports
for Eurozone finance ministers and
the IMFs board, who will decide on
the aid tranche.
Without the next 8bn aid install-
ment Athens could run out of cash as
soon as mid-November.
ECB is seeing
its overnight
lending soar
THE FOUR parties of Slovakias ruling
coalition ended talks on trying to solve
a dispute over expanding the
Eurozones European Financial
Stability Facility (EFSF) safety net with-
out a deal yesterday but will continue
discussions from 7am this morning,
the Slovakian prime minister said.
Government sources said Prime
Minister Iveta Radicova had threat-
ened to resign earlier if a deal was not
reached over ratifying an expansion
the EFSF agreed by Eurozone leaders
in July. The junior ruling SaS party has
vowed to block the measure.
The senior party in Slovakias centre-
right coalition is believed to have
offered a new compromise proposal to
a junior partner its support for
expanding the size and powers of the
Eurozones bailout fund.
Under the proposal, all future fund-
ing for Eurozone bailouts disbursed by
the EFSF would be subject to approval
by the Slovak government and parlia-
ments budget and finance committee.
But no veto rights would be given to
individual parties, a stipulation the
dissenting liberal SaS party has
demanded.
The proposal also offers that a spe-
cial committee of party experts would
be created to assess Slovakias position
on the disbursement of EFSF loans.
Slovakia delays
key decision on
expanding EFSF
BY HARRY BANKS
EUROZONE
EUROZONE
News
A MAJOR US investor advisory firm
recommended yesterday that share-
holders of the News Corporation vote
against the re-election of 13 of the
media conglomerates 15 directors,
including chairman and chief execu-
tive Rupert Murdoch, who controls
the company.
The Institutional Shareholder
Services (ISS), said the phone hacking
scandal at the News of the World laid
bare a striking lack of stewardship and
failure of independence.
The firm also criticised the boards
decision to approve a 180 per cent
increase in Mr Murdochs cash bonus
to $12.5m (8.5m) in the year to June
2011, soon after the phone hacking
fallout began.
ISS recommended that sharehold-
ers vote against re-electing Mr
Murdoch, his sons James and Lachlan
as well as chief operating officer Chase
Carey. Only veteran lawyer Joel Klein
and venture capitalist Jim Breyer were
backed by the ISS.
News Corp said it strongly dis-
agrees with the analysis, adding that
the ISSs disproportionate focus on
these issues is misguided and a dis-
service to our stockholders.
The annual general meeting is in
Los Angeles on 21 October.
BY KASMIRA JEFFORD
MEDIA
New call to oust Murdoch

The ISS is calling for Rupert Murdoch to be kicked off News Corps board.
News
Hendry fund
grows amid
Euro turmoil
CREDIT SUISSE PREDICTS GOLDMAN LOSSES
Goldman Sachs is expect-
ed to reveal its second
ever quarterly loss when
it reports next week,
according to Credit
Suisse analysts. They
forecast the Wall Street
giant will report a loss
of $392m (250m) for the
three months to the end
of September. Barclays
predicts losses in the
region of 180m. A quar-
terly loss for Goldman
Sachs, led by Lloyd
Blankfein (pictured),
would be the first since
2008.
Picture: REUTERS
EUROPES competition regulator
will exclude a critical derivatives
market from their investigation
into the $10.2bn (6.6bn) merger of
Deutsche Boerse and NYSE
Euronext, sources said yesterday.
The European Commission will
not examine the market for over-
the-counter (OTC) derivatives,
which are traded through a dealer
instead of publicly on an electronic
platform such as an exchange, in
its review of the merger.
Deutsche Boerse and NYSE
Euronext both have large deriva-
tives trading arms, Eurex and Liffe
respectively, and a merged group
would control about 90 per cent of
the market for exchange-traded
derivatives. But while the OTC mar-
ket in Europe is huge, City A.M.
understands the two exchange
groups would control only about a
fifth of the market.
The decision to look only at listed
derivatives shows the ECs focus on
competition in Europe, but deriva-
tives traders view their market as
global and compete with the US.
The focus on listed derivatives
makes the EC more likely to rule
that the deal hurts competition.
EC leaves out
OTC derivatives
in deal probe
CAPITAL MARKETS
THE HEDGE fund run by outspo-

ken investor Hugh Hendry
achieved stellar returns of nearly
five per cent this summer despite
the turmoil gripping markets.
Hendrys CF Eclectica Absolute
Macro fund returned 4.76 per cent
in August and September at a time
when the hedge fund industry was
struggling to make any gains.
Eclectica has gained 13 per cent
since May after Hendry took a
downbeat view of European eco-
nomic prospects.
Yesterday Hendry was flying to
New York but told City A.M. that
Eclectica now has $700m (446.8m)
under management.
Hendry, a charismatic
Glaswegian who is known for his
appearances on programmes such
as Question Time, set up his fund
after leaving his job as a trader at
Odey Asset Management. He often
takes contrary positions and has
been betting against China.
His success comes against a grim
period for the hedge fund industry,
which is struggling to emerge from
its worst period since the height of
the financial crisis. The average
fund fell by 2.8 per cent in
September and 5.5 per cent over
the quarter, according to Hedge
Fund Research.
It also emerged at the weekend
that the Advantage Plus fund, run
by John Paulson tumbled 19.35
per cent last month.
As well as Eclectica, a handful of
other funds have bucked the trend.
GLG, part of Man Group, saw its
$2bn Atlas Macro fund gain an esti-
mated six per cent in September.
Last week City A.M. revealed that
Winton Capital, run in London by
David Harding, is up around 6.3
per cent so far this year.
HEDGE FUNDS
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t c a x
RECRUITER Michael Page yesterday
revealed that the jobs market was
stalling in the UK, with the firm
depending on growth in other mar-
kets to lift profits.
The company said gross profits in
the UK rose just 0.3 per cent to 33.1m
in its third quarter, against growth of
48 per cent in the Americas and 44
per cent in Asia-Pacific thogugh
even these regions grew more slowly
than a year ago.
Michael Page said government
spending cuts, which had triggered
state hiring freezes, had put the
brakes on its progress in the UK, while
emerging markets were thriving.
Market turbulence has also hit City
jobs, compared with a financial servic-
es sector in Asia that has seen jobs
rise. The group, which operates in 32
countries, said total group gross prof-
its rose 22 per cent to 142.7m.
Pages banking business, which
focuses on London, New York, Tokyo
and Hong Kong and accounts for 10
per cent of the groups gross profit,
grew ten per cent in the third quarter,
compared to 28 per cent growth the
previous year.
The firms headcount rose by 229
to 5,350, with the additions mainly
made in China.
Michael Page also announced that
Sir Adrian Montague will retire as
chairman on 31 December after 10
years on the board and Robin
Buchanan, an independent non-exec-
utive director, will succeed him.
Michael Page
hit by hiring
freeze in UK
ALMOST half of city workers are
expecting bonuses to fall over the
next three years, citing uncertain
market conditions, according to a
survey by careers website
eFinancialCareers.com.
Just 15 per cent of 533 profession-
als interviewed by the jobs website
predicted bonuses will get bigger
over the next three years, while 29
per cent expect them to stay the
same. However 89 per cent of City
workers are still confident that they
will receive a bonus this year.
City expects a
cut in bonuses
Chief executive Steve Ingham said that the group remains strong despite UK turbulence
BY JOHN DUNNE
RECRUITMENT
FINANCIAL SERVICES
News
ANALYST VIEWS: HOW DAMAGING IS THE UK
JOBS CLIMATE FOR RECRUITERS? Interviews by John Dunne
GRAHAM BROWN | EVOLUTION

The increasingly concerning macroeconomic outlook has placed esti-
mates on a sharp downgrade cycle. Unlike other staffers, though, the shares
remain above their 10-year average, in part owing to their faster growth tra-
jectory.
ANDY MURPHY | SINGER CAPITAL MARKETS

Michael Page has performed weakly. It now trades on an enterprise
value/sales ratio of 1x (Hays is on 0.3x) down from a peak of 2.2x in 2007 and a
recent high of 1.6x.... However, they are continuing to invest in people and new
offices as evidenced by new operations in Brazil, India and the US.
RICHARD CURR | PRIME MARKETS

Michael Page results provide arguably the most telling glimpse into the
state of the global economy. The profits story and growing cash pile should see
the shares well supported within the current trading range established in August,
and as such Prime Markets reiterates its view of a a buy.
ANALYSIS l Michael Page International

p
7Oct 10Oct 4Oct 5Oct 6Oct
380
360
340
358.00
10 Oct
BANKS including Nomura and Royal
Bank of Scotland have cut pay rates
for IT contractors and other tempo-
rary workers by 10 per cent and
more as they take an increasingly
hard line on costs.
In a manoeuvre rarely seen since
the height of the financial crisis,
Nomura, Japans biggest investment
bank, cut wages for some contrac-
tors by 10 per cent in September,
sources familiar with the matter
said. Nomura and RBS declined to
comment.
Banks trim pay
for contractors
BANKING
SPANISH infrastructure firm

Ferrovial has cut its stake in UK air-
port operator BAA to just below 50
per cent after selling a six per cent
share, removing BAAs debts from its
balance sheet.
Ferrovial said yesterday that it had
agreed to sell 5.88 per cent of its BAA
investment vehicle, FGP Topco, to US
infrastructure investment group
Alinda Capital Partners for 325m
(283.7m), valuing BAA at 5.52bn.
Its been a good sale at a great
price but we dont plan to sell any
more [of BAA] at the moment, a
spokesman for Ferrovial said.
The sale means Ferrovials stake in
BAA will drop to 49.99 per cent from
55.87 per cent, the Spanish company
said, allowing it to deconsolidate
BAAs debt from its balance sheet.
Following the sale, expected to
close by the end of this month,
Ferrovials accounts will show about
5.19bn of debt against the current
19.75bn, the spokesman said.
This deal should be positive for
the share price as it unlocks hidden
value, gives Ferrovial greater flexibili-
ty and may make it easier to capture
other investment opportunities, said
Societe Generale analyst Victor
Acitores.
Ferrovial has been considering sell-
ing a stake of up to 10 per cent in BAA
for around a year. It put the stake up
for sale last October in a move to trim
its debt.
BAA owns London Heathrow --
Europes busiest airport -- as well as
Southampton and Stansted in
England and Glasgow, Edinburgh and
Aberdeen airports in Scotland.
The Competition Commission (CC)
last week told BAA that it must sell
one of its Scottish airports before it
disposes of London Stansted airport.
The CCs decision followed a two-
year battle between BAA and the CC
after the CC ruled in 2009 that BAA
exerted a dominant hold on British
airports and told it to sell Gatwick
and Stansted airports and one of its
Scottish airports.
BAA last month said it would seek
a judicial review of the UK competi-
tion watchdogs ruling requiring it to
sell off Stansted and either Glasgow
or Edinburgh airport in Scotland.
Ferrovial cuts
stake in BAA
to lower debt
BY HARRY BANKS
INFRASTRUCTURE
News
ANALYSIS l Ferrovial SA

9.20
8.80
8.40
8.00
9.08
10 Oct
Bristol Airport - 2006
World Duty Free - 2008
Belfast City Airport - 2008
Gatwick Airport - 2009
Edinburgh or Glasgow Airport - TBC
Stansted Airport - TBC
GIC
Britannia Airport Partners
Ferrovial
Alinda Capital Partners
%
26.48%
49.99%
5.88%
17.65%
ANALYSIS l BAA Ownership
THE Treasury select committee has
called for an explanation from banks
planning to restrict which cash
machines basic bank account hold-
ers have access to.
Committee chairman Andrew
Tyrie wrote to RBS and Lloyds about
their schemes after consumer groups
said the they could affect some of the
most vulnerable in society.
A million RBS customers with basic
bank accounts have been told they
will only be able to withdraw money
only from RBS, NatWest, Tesco or
Morrisons cash machines. The bank
blamed costs for the move.
Tyrie wrote: We are concerned
about the restrictions Lloyds and RBS
are placing on basic account holders
access to other banks cash
machines.
RBS and Lloyds asked to explain
cash machine restriction plans
BANKING
Ferrovial chief exec

Inigo Meiras said
the sale was in line
with strategy.
YAHOOstarted life as Jerry and Daves
Guide to the World Wide Web, a direc-
tory of websites named after founders
Jerry Yang and David Filo.
In 2008, when Yang recommended
shareholders reject Microsofts
$44.6bn (28.5bn) bid for the firm,
many investors were wishing he had
studied the guide a little more closely.
Now sources say Yang is interested
in a $20bn deal that would see a pri-
vate equity group take the reins at the
struggling internet giant.
It is understood Yang would retain
his 3.63 per cent stake as part of any
deal, with Filo also expected to main-
tain his 5.9 per cent interest.
Silver Lake Partners, Providence
Equity Partners, Hellman & Friedman
and Bain Capital have all been linked
to Yahoo. The speculation comes after
reports that Microsoft is also mulling a
second attempt at taking control of
the company, albeit at a steep discount
to the sum it was willing to pay just
over three years ago.
Yahoo and its longtime advisers
Allen & Co and Goldman Sachs began
work on a strategic review after chief
executive Carol Bartz was axed last
month. The advisers are expected to
send financial information to interest-
ed parties this week.
Yahoos share of the US search mar-
ket stood at 16 per cent in August,
compared with 19 per cent two years
ago, despite a deal to outsource search
technology to Microsoft. Googles
search share has been steady at 65 per
cent, while a resurgent Microsoft has
seen its share rise to 15 per cent from
nine per cent two years ago.
Since 2008, jokes have circulated
that Yang has the best tan in Silicon
Valley from all the time he spent on
the golf course. He will certainly have
his work cut out now.
Yahoo mulls
$20bn sale to
private equity
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applies for travel Fri - Sun.
BY STEVE DINNEEN
TECHNOLOGY
CHINAS Alibaba Group has held talks

with state-owned investment compa-
ny Temasek over buying back the 40
per cent stake in itself held by Yahoo.
Alibaba a huge success story in
China could even bid for the whole
of Yahoo, allowing it to push into the
US.
Jack Ma, the chief executive of
Alibaba, said last month he would be
very interested in such a deal,
although Temasek is understood to
be less keen. Singapores Temasek
may help fund an offer in return for a
bigger share of privately-owned
Alibaba Group.
The relationship between Alibaba
and Yahoo has become increasingly
strained, with the US firm claiming it
was kept in the dark over the spin-
ning-off of Alipay, the companys
online payment service.
... while Chinas Alibaba plans to
buy back its 40 per cent stake
TECHNOLOGY
News
Co-founder Jerry Yang is interested in taking the business private Picture: REUTERS
ANALYSIS l
Apr Jul Oct 2009 Apr Jul Oct 2010 Apr Jul Oct 2011 Apr Jul Oct 2008
25
30
20
15
10
$
YAHOO ADVISES AGAINST OFFER
Board recommends Yahoo investors reject the bid
MICROSOFT
BID
Yahoo shares
rocket as
Microsoft
announces a
bid valuing the
company at
$44.6bn
PROFITS TUMBLE
Yahoo reports dire
results, sending
shares plummeting
JERRY YANG TO
STEP DOWN
The chief executive
says he will quit
the post
MICROSOFT AD DEAL
The firms finally agree to
work together to battle
Google
ALIBABA CONFLICT
Yahoo claims its Chinese
JV partner kept it in the
dark over the sell off of
its Alipay unit
BARTZ FIRED
The colourful chief executive is given the
chop after failing to turn the company
around
Yahoos ups and downs since Microsofts bid
Apple, the Apple logo, and iPad are trademarks of Apple Inc., registered in
the U.S. and other countries. App Store is a service mark of Apple Inc.
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THE WIND-DOWN of troubled pri-
vate equity fund LMS Capital could
take more than three years after the
failure of efforts to resolve a dispute
between chairman Robert Rayne and
a group of independent directors.
The group of non-execs, led by
John Barnsley, yesterday called on
Lord Max Raynes son to resign, just
weeks after he and his allies formed
a concert party, representing
about 35 per cent of the shares, in an
attempt to trigger a break-up.
The Independent Committee has
sought to structure an exit for the
Concert Party, but it has not been
possible to establish a price at which
the Concert Party would be willing
to sell its holding and at which a
buyer or buyers for those shares
could be found in current market
conditions.
Now the fund will write to share-
holders asking for an orderly wind-
down, which will take more than
three years, according to sources.
City A.M. understands some infor-
mal discussions were held over a sale
of the Rayne groups stake but a
spokesman denied seeking to agree a
sale price. The concert party said it
has never sought to have its share-
holding bought by the company, nor
has it sought any different treat-
ment for its shareholding from that
of other shareholders.
Raynes group has been concerned
by the price LMS shares, which have
traded at a 30 to 35 per cent discount
to their net asset value since 2006.
Chaos at LMS
as closure of
fund agreed
UK investment banks saw their fees
from arranging private equity buyouts
shrink dramatically in the past three
months to the lowest level since 1997,
data yesterday showed.
The UK slipped to fourth place in
Europe for buyout-related fees in the
third quarter from first place a year
ago, claiming only a 9.6 per cent share
of the regions market.
The UKs banks made net revenues
of $81m (52m) in the quarter, data
from Dealogic showed a 62.5 per
cent slump on the same period in
2010, when banks made $216m from
private equity deals. The UK held the
top spot in Europe for nine months
from September last year, command-
ing more than a fifth of the market.
French banks took the top spot for
fees from private equity deals in the
third quarter, banking $241m in rev-
enues and taking a 28.4 per cent mar-
ket share. Italy and Germany saw the
second and third-highest fee levels.
European private equity houses
have had an increasingly difficult year
as the Eurozone sovereign debt crisis
has forced them to either postpone or
abandon transactions.
Banks in Europes ten biggest mar-
kets for fees made a total $847m in
the third quarter, lower than the prior
quarter but higher than a year ago.
Bank fees from
private equity
at 14-year low
Robert Rayne faces calls for him to step down as chairman
LMS boss Glenn Payne, left, and John Barnsley, chair of the non-execs
BY PETER EDWARDS
FUND MANAGEMENT
PRIVATE EQUITY
News
ANALYSIS l LMS Capital
p
7Oct 10Oct 5Oct 6Oct
62
58
61.94
10 Oct
A TALE OF TWO PAPERS: HOW TO FIX
THE EURO AND ERASE THE FIXINGS
DRAWING A BLANK
ON EURO SOLUTION
All hail a new experiment in open-
sourced journalism, kicked off yes-
terday by the Guardian. The
paper, edited by Alan Rusbridger
(pictured) has generously
opened up its daily news list for
feedback from readers
throughout the day,
detailing the gist of
most of the stories
vying for space in its
pages. The Capitalist
naturally scrolled
speedily to the busi-
ness section to pick
the great brains of
her rivals.
Everything seemed to
be proceeding swim-
mingly stories all
assigned, boxes filled
in, from Dexias
bailout to the award
for the Nobel prize for economics.
With one rather crucial exception:
What is the plan to save the euro?
ran the summary for one of the
evening stories under considera-
tion. The column next to it?
Blank.
ASSET STRIPPERS
IT IS three months now since
Rupert Murdoch closed
the News of the World,
but the tabloid has
already been erased
from newspaper histo-
ry. Any NoTW refugees
wanting to collect
their belongings from
their old newsroom
were told they had to
make an appointment,
then collect their posses-
sions from tables within
a ghostly hangar in the
old News International
site. The entire news-
room was stripped bare almost
immediately after the paper closed,
said The Capitalists man in Wapping.
All that remained were the four
walls there was no sign that the
News of the World ever existed.
Some of the keenest trophy hunters
unscrewed framed stories from the
walls. No doubt some will turn up on
eBay soon, along with the swathe of
final editions on offer.
15 EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
The Capitalist
CITYA.M. 11 OCTOBER 2011
Scores of final editions of News Of The World are listed, with prices up to a hopeful 1m
News
ENGINEERING group Charter
International had to delay giving
shareholders the full details of the
offer from US buyer Colfax for anoth-
er week, it said yesterday.
Charters board was due to publish
the full scheme of arrangement for
the takeover yesterday but it asked
the Takeover Panel to grant it another
weeks grace as it finalises the struc-
ture of the offer it recommended in
September.
Colfax offered Charter sharehold-
ers 910p per share in cash and shares
to be disbursed through a mix and
match facility that would allow each
investor to elect to take up their pre-
ferred combination of the two.
The extension to the Takeover
Panel deadline for Colfaxs offer sug-
gests details of the mix and match
facility are still being worked out.
The Takeover Panel has agreed
with Charter and Colfax to extend
the date by which the circular to
shareholders in connection with the
Scheme must be posted, from
Monday 10 October 2011 until
Monday 17 October 2011, Charter
said in a statement.
Charters board backed the 1.5bn
offer from Colfax, a smaller company,
after UK-based rival Melrose indicated
it wanted to buy Charter for up to
850p, or a total 1.4bn.
Colfax trumped Melroses two bids
with its higher offer, but saw a back-
lash from Charters long-term
investors Schroders and Aviva
Investors, which said they had been
disappointed with the outcome.
Charter shares closed up 0.2 per
cent at 872p while Colfax was 2.4 per
cent higher in afternoon trading.
Colfax stalls
Charter offer
for one week
BY ALISON LOCK
INDUSTRY
Urenco might best be privatised through an IPO

W
ITH the transactional mar-
kets still deathly quiet, its
tempting to think of invest-
ment bankers sitting
around twiddling their thumbs or
frequenting their gyms rather more
than usual.
But theres still plenty of specula-
tive work going on, and some less
speculative work, as well as the odd
IPO being planned, such as that of
Polymetal I wrote about last week.
One of the more interesting proj-
ects being looked at is the possible
privatisation of Urenco, a world
leader in concentrating uranium,
which is currently owned by the UK
government, the Dutch government
and German utilities E.ON and RWE.
Last month, RWE and E.ON
appointed Bank of America Merrill
Lynch to conduct a strategic review of
their joint stake and since then, there
have been many meetings to discuss
the options.
Urencos order book stretches
beyond 2025, giving it very reliable
earnings. It would be tempting to sell
the company to the highest bidder in
a sealed bid contest, but this would be
unlikely to happen because of the
strategic importance of the company.
Bankers think the process would be
better managed if they sold shares in
the company in an IPO, where they
would have more control over those
who bought in (at least in the initial
allocation).
But Fukushima is still fresh in the
mind and the IPO markets need to
thaw first, before Urenco can make
best use of them.
THE CADBURY RULES
Deutsche Bank advisers led by
Richard Sheppard will be preparing
documents in connection with their
client Colfaxs takeover of the UK
group Charter.
Colfax beat off a competing bid
from Melrose and is now in a position
to fulfil rule number 24.2 of the Citys
Takeover Code, which compels it to
set out its intentions for the company
it has just bought, in terms of which
employees it wants to get rid of,
which businesses and which factories
and so on.
Both Kraft and Lazard, its adviser,
ran into trouble with the Panel dur-
ing last years bid for Cadbury, when
it turned out that a factory they said
was going to be kept open was closed.
As a consequence of this affair and
the later thoughts of Cadbury chair-
man Sir Roger Carr, who is now CBI
president, the disclosure rules have
been enhanced and now Colfax needs
to state clearly its intentions for
Charter and its employees for a full 12
month period from the time the deal
closes.
We will adhere closely to the Panel
requirements, said a source close to
Colfax. Its unlikely that the firm will
want to follow Kraft in upsetting the
Panel and ending up in front of a
Select Committee.
david.hellier@cityam.com
INSIDE TRACK
DAVID HELLIER
ANALYSIS l Charter International
p
890
870
850
872.00
10 Oct
Jardine Lloyd Thompson
snaps up Chilean broker
INSURANCE broker Jardine Lloyd
Thompson paid 10m in cash for a
controlling stake in Chiles number
four broker yesterday as it completed
the deal announced in June.
JLT said it had gained control of
broker Orbital Corredores de Seguros
after completing the purchase of a
50.1 per cent stake in Alta, its parent
company. Alta also runs Alta Re, a
reinsurance unit.
Under the deals terms, JLT also has
an option to increase its stake in Alta
to 75.1 per cent in 2020, depending
on the profitability of the business at
that time. Alta made a 2.1m profit
on net revenues of about 5.1m in
2010.
JLTs Latin America chief executive
Vyvienne Wade said the acquisition
would add significantly to our capa-
bilities in the region as both Orbital
and Alta Re are leading firms in
Chiles well established market.
Lloyds broker JLT has shrugged off
the turbulent environment to con-
tinue its growth strategy this year. Its
founder and lead investor, Jardine
Matheson, paid 166m to raise its
stake to 40.4 per cent last month.
INSURANCE
YOUGOV saw its full year profits soar

as key acquisitions hit the ground
running.
The online market research compa-
ny saw its adjusted pre-tax profit rise
43 per cent to 5.8m, boosted by a
strong performance in the US, which
now represents its largest market.
Revenue there rose 230 per cent after
the integration of Harrison Group
and Definitive Insights.
Overall revenues rose 27 per cent to
hit 56.1m, while organic growth hit
nine per cent. It now expects good
growth, despite the end of a contract
in Iraq and persistant fears over mar-
ket volatility.
Chief executive Stephan
Shakespeare said: This performance
reflects organic growth in the busi-
ness as we develop new products and
serve new clients as well as our suc-
cessful acquisitions in the US, which
are delivering ahead of expectations.
The core model is working well
across both the existing and acquired
businesses. The current year will see
further benefits from our US acquisi-
tions and continued gains in other
markets.
He added that new management in
Germany are expected to deliver
improved profitability.
Investec analyst Steve Liechti said:
The figures highlight very strong US
growth which is more than offsetting
Germany and Middle East issues,
while the UK is also performing well.
YouGov profit
surges as its
US unit grows
BY STEVE DINNEEN
MEDIA
NETWORK operator Three has said

Ofcoms decision to delay the mobile
spectrum auction, which will eventu-
ally allow faster mobile data use, will
hit its customers and give its larger
rivals an unfair advantage.
The network said the delay until
the end of next year widens the mas-
sive competitive and commercial
imbalance it suffers from. It is angry
that, until after the auction, rivals are
able to use their existing low frequen-
cy spectrum for 3G data services with-
out paying a premium.
Ofcom said the decision to delay
the auction gives it time to address
the concerns of the major UK net-
works, all of which have complained
about the terms set out.
The last spectrum auction raised
22.5bn, although analysts expect the
4G auction to pull in closer to 4bn.
Three says it will be hit hard by
Ofcoms delay of mobile auction
TELECOMS
THE iPhone 4S has broken Apples

previous records for pre-orders, clock-
ing up more than 1m in a single day.
The handset, which received a
muted reaction on its launch last
week, surpassed its previous one-day
record of 600,000 sales for last years
iPhone 4.
One company alone AT&T sold
200,000 contracts for the device in
just 12 hours.
However, Colin Gillis of BGC
Partners said it is too early to break
out the champagne just yet. He said:
Its not the first million. We know
theres a large, loyal base of users.
They need to sell more than 20m of
these in this quarter to hit estimates.
Apple needs to break records to hit
expectations.
Apple shares rose four per cent in
early trading yesterday. The iPhone
4S will be available in US stores on
Friday. Meanwhile,
Google and
Samsung have
delayed the release
of their Nexus
Prime phone in the
wake of Steve Jobs
death, saying it no
longer felt like the
right time.
The launch has
been placed on
indefinite hold.
iPhone 4S breaks pre-order
records with 1m on first day
BY STEVE DINNEEN
TELECOMS
News
Stephan Shakespeare said he is optimistic about good growth
ANALYSIS l YouGov PLC
p
46.50
46.00
45.50
45.00
44.50
44.00
43.50
44.50
10 Oct
Rated No.1 in Server Customer Satisfaction by TBR for the 6
th
consecutive quarter
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Performance or efficiency?
How about both.
The IBM System x3200 M3 Express server with the latest Intel
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whilst maintaining high performance, the x3200 M3 offers vast memory capacity and disk
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2
TBR 4Q10 x86-Based Servers:
Corporate IT Buying Behavior & Customer Satisfaction Study, February 2011.
3
All prices stated include VAT at a rate of 20% and are the IBM estimated retail selling prices
that were correct at the time of going to print.
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Quarterly price quoted is based on IBMs 0% System x Solution Finance offering (FMV lease). Terms & Conditions Apply:
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apply. Monthly payment provided is for planning purposes only and may vary based on customer credit and other factors. Payment is quarterly. Rates and offerings are
subject to changes, extension or withdrawal without notice.
5
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hardware products are manufactured from new parts or new and serviceable used parts. Regardless, our warranty terms apply. For a copy of applicable product
warranties, visit http://www.ibm.com/servers/support/machine_warranties.
6
Service will only be provided in the country where the service has been purchased, unless
stated otherwise. For more information on ServicePac warranty enhancements visit: www.ibm.com/services/europe/maintenance IBM makes no representation or
warranty regarding third-party products or services. IBM, the IBM logo, System Storage and System x are registered trademarks of International Business Machines
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News
BRITISH shops have unexpectedly
recorded growing sales in the three
months to September, defying the
wider economic turmoil.
Like-for-like retail sales were 0.3
per cent up last month, compared
to the same time in 2010, data
revealed this morning.
And the three-month weighted
average designed to iron out
monthly volatility showed like-for-
like sales up 0.1 per cent compared
to last year, the British Retail
Consortium (BRC) said.
Total sales, which include shops
expansions, were up 2.5 per cent in
September, and 2.2 per cent from
July through to September.
However, the BRCs director gen-
eral, Stephen Robertson, remained
downbeat.
In these harsh times, we have to
be thankful for this minor improve-
ment in growth compared with
August but underlying conditions
remain weak, Robertson warned.
Spending growth is below infla-
tion meaning customers are buying
less than this time last year. And
theres no guarantee next months
figure will be better.
Food sales are propping up the
figures. Like-for-like food sales were
up 2.1 per cent from July to
September, while total food sales
spiked 5.1 per cent.
Hot weather at the end of
September boosted spending on
food and drink, but clothing sales
slumped as the sun undermined
interest in winter ranges,
Robertson explained.
Short-lived factors such as the
weather and discounting are influ-
encing sales not any fundamental
change in how customers are feel-
ing.
Consumers are responding to the
economic squeeze by looking for
high value purchases, according to a
separate report released yesterday
by consumer researchers Nielsen.
Thirty-six per cent of shoppers
surveyed across 51 countries said
they favoured larger, economy-sized
packages.
As commodity and raw material
costs continue to rise, this is the
clear preference among con-
sumers, the report said.
Sales rise for UKs
resilient retailers
BY JULIAN HARRIS
RETAIL
QVC, one of the worlds biggest

shopping channels, will launch
its first pop-up shop on the
British high street today.
The temporary Diamonique
store selling QVCs own range of
imitation diamonds is opening
in Hatton Garden today with
prices ranging from 21 to 743.
The new retail offering comes
as the company announced its
viewing figures had risen by 10
per cent over the last year, to
7.6m a month, with sales up five
per cent to 387.2m.
The firm hopes to piggyback on
the soaring value of gold and dia-
monds, which have caused the
price of jewellery to shoot
upwards over the last year.
Diamonds have seen their value
rise 27 per cent since last year, a
report by Cap Gemini said in July,
and London-listed commodities
firms such as Petra Diamonds
and Gem Diamonds have report-
ed surging profits for the latest
quarter.
Emily Gilkes, jewellery buyer at
QVC said: Beautiful jewellery
should be attainable for every-
one. Our Diamonique offering is
expertly cut by hand in the same
way that natural diamonds are to
enhance the clarity, colour, cut
and brilliance of every piece.
QVC was founded in the US in
1986 and now broadcasts in the
UK, Italy, Germany and Japan to
close to 200m households.
The company is owned by US
conglomerate Liberty Media, and
employs 2,000 people in the UK.
QVC recently released a jew-
ellery line designed by model
Heidi Klum.
Shopping channel QVC unveils first
high street shop as turnover shines
RETAIL
Annie Lennoxs daughter Tali models for Julien MacDonald at Debenhams

PETS at Home boss Matt Davies will
step down next year after almost two
years after presiding over the sale of
the firm for almost 1bn.
The outgoing chief executive has
been at the helm for eight years and
oversaw two private equity takeovers,
the most recent a 955m acquisition
by KKR.
The firm has grown exponentially
under his leadership, reporting profit
growth of more than 10 per cent last
year to hit 93m, on sales of 518m.
Davies says he told the board at the
start of the year that he would leave to
seek new challenges.
Davies said: My time at Pets at
Home has been hugely rewarding and
enjoyable and it has been a great pleas-
ure to manage such a special business
and work with such talented and pas-
sionate people.
The calibre of the team leaves me
in no doubt that the business will con-
tinue to go from strength to strength
through its next phase of growth.
Tony DeNunzio, chairman of Pets
at Home, said: KKR and I would like
to thank Matt for his contribution to
the company over the past ten years.
He has helped build an excellent
business, with a very strong manage-
ment team and an exciting growth
strategy. He has been a pleasure to
work with.
Pets at Home was bought by
Bridgepoint from its founder Anthony
Preston for 230m in 2004.
DeNunzio says the company is in
the process of looking for a replace-
ment. Pets at Home employs more
than 5,000 people across its retail out-
lets and veterinary clinics.
Pets at Home boss
to step down after
eight years at helm
BY STEVE DINNEEN
RETAIL
DEBENHAMS is to hire an extra 6,500

seasonal staff to cope with the
Christmas rush, it said yesterday.
The temporary workers will be
employed in mid-November and cover
the period to the end of the January
sales.
Retail is the biggest private sector
employer in the UK, with around 3m
people working in the industry.
Debenhams chief executive Michael
Sharp said: These jobs are sure to be
welcomed by local economies during
the most financially challenging part
of the year.
Approximately a quarter of staff
that work with us over the festive sea-
son will stay on in permanent roles,
making this a crucial period in our
employment calendar.
The jobs will be split between every
department at the retailers 163
nationwide stores, but this latest boost
in temporary positions is lower than
last year when the retailer created
9,000 extra festive roles.
Debenhams to
create 6,500
Christmas jobs
RETAIL
KALAHARI Minerals confirmed yes-

terday that offer talks had resumed
with state-owned China Guangdong
Nuclear Power Corp.
CGNPC is expected to relaunch its
270p a share offer, valuing the ura-
nium miner at about $1bn (638m),
following a temporary ban imposed
by UK regulators.
CGNPC was in talks in March to
buy Kalahari for 290p a share. In the
days following the earthquake and
nuclear disaster in Japan, the com-
panies agreed CGNPC could cut the
price to 270p, but they failed to per-
suade UK regulators and CGNPC was
forced to withdraw its informal bid.
Since more than three months
have elapsed since CGNPC
announced the withdrawal of its
possible offer, it is no longer restrict-
ed into making an offer on the same
or better terms than those in its
original potential offer, Kalahari
said yesterday.
Kalahari also said it had waived
another UK Takeover Panel code
that had restricted the Chinese
group from announcing an offer
before 11 November.
Kalahari holds a 43 per cent stake
in Extract Resources, owner of the
Husab project in Namibia, which is
potentially the second-largest urani-
um mine in the world.
Shares in Extract Resources
surged more than 10 per cent in
Australia yesterday on expectations
it may also get a takeover offer from
CGNPC.
Kalahari back
in talks with
Guangdong
Ladbrokes ends bid discussions
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BRITAINS biggest betting firm
Ladbrokes and online gaming firm
Sportingbet have called off bid talks,
scuppered by regulatory worries over
Sportingbets Turkish business.
Ladbrokes had been in talks with
Sportingbet since June, but
Sportingbets online gambling busi-
ness in the tough regulatory regime
of Turkey was seen by analysts as a
stumbling block to a successful
takeover.
The potential benefits and risks
associated with a combination with
Sportingbet were clear to us from the
outset and have been well covered by
the market, said Ladbrokes chief
executive Richard Glynn in a state-
ment yesterday.
Having completed our analysis we
have been unable to agree a structure
which delivers increased shareholder
value within an acceptable regulatory
environment. We have therefore
agreed to end our discussions.
Sportingbet has no assets in Turkey
but operates a website offering bets to
Turkish residents. Ladbrokes has
pulled out of previous deals because
of its aversion to operating in unregu-
lated territories.
Glynn said on a call with reporters
he did not believe Ladbrokes was a
risk averse company but saw too many
hurdles to a Sportingbet deal. Theres
just not a structure we can agree on
that gives our shareholders an accept-
able level of ... regulatory risk, he said.
Sportingbet shares tumbled 19.1
per cent to 37p on the news, while
Ladbrokes shares ended the day down
0.75 per cent at 119.7p.
BY ELIZABETH FOURNIER
MINING
BY HARRY BANKS
M&A
ASTRAZENECA, Britains second-

largest drugmaker, has cemented its
plans to shift investment into emerg-
ing markets, saying yesterday it will
invest $200m (128m) in a new facto-
ry in China.
The pharmaceutical giants
investment will be its largest ever
spend on a single manufacturing
facility globally.
The unit will produce both intra-
venous and oral solid medicines for
the companys growing business in
China, AstraZeneca said yesterday.
Construction is scheduled to be com-
pleted at the end of 2013.
AstraZenecas turnover in China
was more than $1bn in 2010 and the
group has made emerging markets a
top priority for future growth.
Astra plans $200m
investment in China
PHARMA
News
NEWS | IN BRIEF
Earnings take a hit at Cargill
US agribusiness and trading firm Cargill
posted a steep drop in quarterly earnings
yesterday, citing economic uncertainty
and volatile commodity markets.
Minneapolis-based Cargill, one of the
world's largest privately held corpora-
tions, reported $236m (150.5m) in
earnings from continuing operations for
the quarter ended on 31 August, down
66 per cent from $693m a year earlier.
Superior Energy buys Complete
Superior Energy Services is to buy small-
er rival Complete Production Services in
a cash-and-stock deal for about $2.6bn,
its largest ever takeover, as the oilfield
services company looks to bulk up its
pressure pumping business.
Adidas eyes growth in Russia
German sporting goods company Adidas
expects investment in its own stores and
rising consumer spending in Russia to
propel the region to becoming one of its
top three global markets behind the US
and China, it said yesterday. Adidas
expects its sales in the Russia/CIS region
to surpass 1bn by 2013, up from
786m last year, chief executive Herbert
Hainer said at an investor day in
Moscow.
Netflix bins DVD spin-off plan
Netflix chief executive Reed Hastings
yesterday performed a U-turn on a three-
week old plan to separate his companys
DVD rental business and online video
streaming service, sending the firms
stock up seven per cent in early trading.
Hastings reversal of a decision to move
its DVD rentals to a separate business
called Qwikster was announced via the
US companys blog.
ANALYSIS l Kalahari Minerals PLC
p
240
250
230
220
210
248.50
10 Oct
MEDIA company Bertelsmann, owner
of the production company that
makes The X Factor, said yesterday its
chief executive Hartmut Ostrowski
will stand down.
Ostrowski, who took the helm in
2008, will take a seat on
Bertelsmanns supervisory board, the
German company said, adding that
he was making the switch for person-
al reasons.
The move comes as a surprise as
Ostrowskis term runs until
December 2012, although
Bertelsmann has traditionally decided
to extend contracts for top jobs a year
before they end.
Finance chief Thomas Rabe will
take over as chief executive at the
start of next year. It was an open
secret that Rabe had been vying for
the CEO position, but whenever he
was in talks to leave had been per-
suaded to stick it out at Bertelsmann.
Rabe and Ostrowski were known to
be at odds partly due to their different
styles and personalities, but company
sources have said the two had put
their differences to rest.
Ostrowski had spent his whole
career bar two years working for
Bertelsmann at the groups headquar-
ters in the small town of Guetersloh,
less than 20km where he was born.
BY HARRY BANKS
MEDIA
Bertlesmann boss to leave

Bertelsmann owns the production company that makes The X Factor Picture: REX
AMERICAN economists Christopher
Sims and Thomas Sargent were
jointly awarded this years Nobel
prize for economics, it was
announced yesterday.
The two have been praised for
their work on cause and effect
analysis. In awarding the 2011
Sveriges Riksbank Prize in Economic
Sciences in Memory of Alfred Nobel,
as the prize is formally known, the
decision-making committee said it
would be nearly impossible to imag-
ine the field without them.
Sims (pictured right) and Sargent
(top right), professors at Princeton
and New York universities respec-
tively, carried out their work inde-
pendently of one another. However,
their contributions are comple-
mentary in many ways, the com-
mittee said.
Cause and effect in economics can
be difficult to establish and measure
because of the two-way relation-
ships between factors studied. In
particular, the pair looked at the
two-way relationships between mon-
etary policy and the broader macro-
economy.
Sims work in the 1970s measured
the impact of temporary changes in
variables such as interest rates on
the wider economy.
As a result, vector autoregressions
are an indispensable tool for
applied researchers, the committee
said.
Sargent, on the other hand, con-
sidered longer-term changes. For
example, he measured households
inflation expectations rising as a
result of policies implemented in
the post-second world war era.
He made substantive contribu-
tions to the study of monetary poli-
cy in his analyses of historical
inflation episodes throughout the
world.
The methods developed by
Sargent and Sims are essential tools
in macroeconomic analysis, the
committee explained.
The 10m Swedish krona
(960,000) prize will be split evenly
between them.
Were just bookish types that
look at numbers and try to figure
out what's going on, Sargent said in
an interview posted on the Nobel
Prize website. We try to experiment
in our models before we wreck the
world.
FRENCH and Italian industrial output
was surprisingly strong in August,
boosting prospects for third-quarter
growth in the Eurozones second- and
third-largest economies, although ana-
lysts warned that this may be masking
underlying stagnation.
French output posted a 0.5 per cent
monthly increase compared with fore-
casts of a one per cent decline, while
output in Italy leapt 4.3 per cent com-
pared with expectations of a modest
0.2 per cent increase, data showed yes-
terday.
German industrial output dropped
one per cent on the month in August,
data showed last week, but the fall was
smaller than expected. Data yesterday
showed German exports hit an all-
time high in the same month.
The latest stats run against business
surveys that have pointed to a signifi-
cant slowdown in industrial activity in
the Eurozone since the beginning of
the third quarter.
The output data from Germany,
France and Italy, which make up at
least two-thirds of the Eurozone econ-
omy, suggests aggregate output fig-
ures for the 17-nation bloc may be
stronger than expected when they are
issued by Eurostat tomorrow.
The numbers clearly show a differ-
ent picture than the scary drop in sen-
timent indicators, said ING economist
Carsten Brzeski after Germany's
export figures. For the time being the
current situation remains good but
expectations have weakened.
Eurozone countries deliver a surprise
jump in industrial production growth
ECONOMIC concerns are causing
house-owners to hold back from plac-
ing their properties on the market, a
new survey reports today.
Supply to the housing market fell
last month, the Royal Institution of
Chartered Surveyors (RICS) said. Five
per cent more surveyors reported that
supply of property fell rather than
rose, in September.
Yet despite a slight pick-up in
demand, house prices remained
unchanged in September, while sur-
veyors still expect prices to be
weighed down in the near future.
Every part of the UK, including
London, recorded some degree of neg-
ative price expectations, the survey
said.
Falling supply of fresh stock is
indicative of general fears overhang-
ing the economy, with many poten-
tial sellers preferring to stay put for
now, said RICSs Michael Newey. The
housing market remains pretty
flat, Newey added.
Economic worries prevent
houses coming to market
HOUSING
THE CHANCE that inflation will fall

below the two per cent target in the
medium term is rising, monetary pol-
icy committee (MPC) member David
Miles told the Royal Economics Society
last night.
Since the Bank of Englands infla-
tion report was published in August,
news on the economy has been over-
whelmingly negative, Miles said.
He fears that weak growth, com-
bined with falling commodities
prices, will lead to a dangerously
large fall in inflation.
Miles believes the new round of
quantitative easing (QE) will boost the
economy despite low gilt yields.
Pointing to higher bank funding
costs, he said QE2 could generate
more deposits.
He also defended the policy of buy-
ing gilts rather than corporate bonds,
saying the MPC is not well placed to
make credit allocation decisions
between issuers and deciding which
firms get funding and which do not.
Miles: QE2 could relieve
banks funding problems
UK ECONOMY
FEARS of economic stagnation in the

UK were heightened today, after a
leading survey of businesses report-
ed an increasingly gloomy outlook.
The third quarter results point to
a deterioration in the economic situ-
ation, with concerning signs of stag-
nation in the domestic economy,
the British Chambers of Commerce
(BCC) said.
And the planned rebalancing of
the economy towards exports and
non-financial products a target of
the government and the Bank of
England is failing to materialise,
the survey suggests.
Exports from both manufacturing
and service sectors fell to their low-
est levels since 2009, the BCC
revealed.
The UKs largest sector services
expects future export orders to con-
tract, the sub-index reporting a neg-
ative balance of minus two per cent.
The survey shows the real risks
facing the economy and the need for
the government to act now in put-
ting business growth at the heart of
all its policies, said John Longworth,
the BCCs new director general.
Government must recognise that
business is good for Britain, and put
in place measures to bolster confi-
dence and support those companies
that have the potential to grow.
Domestic demand showed mini-
mal growth or stagnation across the
board. Domestic factory orders
stayed in positive territory yet plum-
meted to a net balance of three per
cent, from plus 18 per cent the previ-
ous quarter.
UK-based demand for services
dropped to parity (indicating stagna-
tion), a 10 per cent drop from the
second quarter of the year.
Employment expectations stayed
narrowly positive in both sectors.
Gloomy outlook for UK firms
BY JULIAN HARRIS
UK ECONOMY
US economists
awarded joint
Nobel prize
BY TIM WALLACE
ECONOMY
BY HARRY BANKS
EUROZONE ECONOMY
NEWS | IN BRIEF
Eurozone investor morale sinks
Investor confidence in the Eurozone has
dipped to more than a two-year low this
month, according to the latest Sentix
index, released yesterday. The Germany-
based Sentix said that the index sank to
-18.5 from -15.4 last month. Some econ-
omists, however, had expected an even
steeper drop.
Downturn expected in the OECD
Wealthy states remain on course for an
economic downturn, the Organisation
for Co-operation and Economic
Development said yesterday. The OECDs
leading indicators, which attempt to
forecast changes in the economy six
months ahead, decline for the fifth
straight month in August. The indicator
fell 0.5 points for the OECD as a whole.
The UKs indicator sank below the 100
point line, which marks its long-term
average.
Prices pressures rise in Norway
Norways energy-adjusted consumer
prices rose 1.3 per cent year-on-year in
September, up from 0.8 per cent in
August, the central bank said yesterday.
August was originally reported up 0.9
per cent year-on-year. Core inflation also
rebounded, rising by 1.2 per cent year on
year from 0.8 per cent in August, official
data showed.
UK set to miss poverty targets
Pegging state benefits to a lower meas-
ure of inflation will contribute to a rise
in poverty, the Institute for Fiscal
Studies (IFS) is expected to argue today.
The IFS forecasts absolute child poverty
to reach 23 per cent by 2020-21, drasti-
cally missing the states supposedly
legally binding target of five per cent.
The UKs dire fiscal situation means the
government is almost certain to miss its
child poverty targets, despite child
poverty falling by nearly a quarter
between 1998 and 2009, the IFS says.
News
Princeton professor Christopher Sims was also given the Nobel in economics
Tom Sargent, a professor at New York University, was jointly awarded the Nobel
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News
Linklaters
The global law firm has appointed
Graham Rowlands-Hempel as
a consultant in its employment and
incentives practice in London.
Rowlands-Hempel is a senior incen-
tives lawyer and was previously a
partner at Linklaters. He joined the
firm in 1994 and was elected partner
in 1998, before retiring in 2008 to join
PwC.
Jones Lang LaSalle
The financial and professional services
firm specialising in real estate has
announced that Tom Bayne-Jardine is
to succeed Bill Monk as lead director of
the firms corporate solutions UK busi-
ness group. Monk will assume the role
of chairman, supporting Bayne-Jardine.
iShares
iShares, the exchange traded funds
platform of BlackRock, has announced
the appointments of Matt Mack as
head of strategic accounts and
Stephen Cohen as head of investment
strategies in EMEA. Mack was
head of UK & Nordic third party distri-
bution at Goldman Sachs Asset
Management. Cohen joins from
Nomura where he was global
head of equity linked strategy.
Mercer
The global provider of consulting, out-
sourcing and investment services has
appointed Phil Howard as a senior
associate in its governance and trustee
services group. Howard will consult on
operational effectiveness, operational
risk and evaluation of sourcing options.
Before joining Mercer Howard was the
operational information manager at
the National Employment Savings.
Deloitte
The business adviser has created a
dedicated infrastructure and capital
programmes industry team. Nick Prior,
head of infrastructure and capital pro-
grammes, will lead a team of 11 part-
ners.
Hausfield & Co
The boutique litigation law firm has
strengthened its European team by hir-
ing assistant solicitors David Lawne
and Tom Bolster. Lawne joins from pro-
bono non-governmental organisation
the Legal Response Initiative and
Bolster joins from Baker & McKenzie.
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
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Mitchells and Butlers PLC
300
280
260
240
220
12July 1 Aug 1 Sept 3Oct
p 247.00
10 Oct
MITCHELLS & BUTLERS
Numis rates the pub group hold with a 250p target price due to M&Bs
uncertain future with just a week to go before Joe Lewis investment vehicle
Piedmont must submit a formal offer. Management has rejected his 230p per
share bid, but it could be accepted if major investors Elpida and Smoothfield
support that price. Numis says the low price could disappoint minority
investors but the sector as a whole could benefit from a smaller M&B.
ANALYSIS l Informa Plc
420
400
380
360
340
320
p
350.10
10 Oct
INFORMA GROUP
Collins Stewart rates Informa a buy with a 507p target price ahead of its
trading statement in two weeks. The broker believes the events and publish-
ing group shows defensive characteristics that make it a good investment in
the current volatile environment. Informa delivered earnings growth through-
out 2008 and 2009, and the broker expects 12 per cent earnings growth in
this financial year. Debt has also almost halved since 2008.
ANALYSIS l Lonmin PLC
1,300
1,200
1,100
1,000
p
1,103.00
10 Oct
LONMIN
UBS advises investors to sell the platinum miner with a 1,110p target price
after its markets day seminar. The $1,500/oz spot price for platinum is well
below the minimum level of about $1,900/oz needed to incentivise new pro-
duction. UBS warns that large parts of the primary industry do not generate
cash, and although long-term demand will be supported by vehicle fuel cell
applications, that technology is currently very expensive to install.
Man Group
Man Group, Europes largest hedge-fund, has
appointed Nina Shapiro as non-executive direc-
tor. Shapiro previously held senior roles within
the World Bank and was Vice President, Finance
and Treasurer of the International Finance
Corporate from 2000 to 2011. After joining the
World Bank in 1978, Shapiro held posts includ-
ing director of project finance and also managed
the IFCs funding, liquid asset investments and
asset liability management. Shapiro holds an
MBA from Harvard Business School.
B
ANK and commodity stocks
hoisted Britains top shares
to a five-week closing high
yesterday, on mounting opti-
mism over the prospects for a solu-
tion to Europes debt crisis after a
weekend meeting of French and
German leaders.
The FTSE 100 ended up 95.60
points, or 1.8 per cent, at 5,399.00,
after Nicolas Sarkozy and Angela
Merkel pledged to unveil new
measures to solve the Eurozone
debt crisis by the end of October.
Volumes were thin at 64 per cent
of the indexs 90-day daily average,
an indication investors were not
fully convinced by the news, with
traders saying markets were likely
to be jittery until the leaders deliv-
er on their promise.
Three weeks is a long time in
the markets, and (they) could
remain volatile, Manoj Ladwa,
senior trader at ETX Capital, said.
A small increase in put pro-
tection options to hedge against
downside risk was seen,
although notably less than over
the last week, according to Atif
Latif, director of equities and
derivatives at Guardian
Stockbrokers.
Mining and energy stocks
added most points to the index as
the nervousness subsided over the
Eurozone debt situation, at least
for now.
FTSE hits a five-week high
on optimism over debt talks
THELONDON
REPORT
11 Jul 29Jul 18Aug 28Sep 8Sep
6,000
5,200
5,600
ANALYSIS l FTSE
5399.00
10 Oct
Banks lead US stock hike
U
S stocks jumped per cent
yesterday, extending gains
into a second week as a
pledge by German and
French leaders boosted hopes
that the Eurozone debt crisis may
be resolved.
Financials led the rally. The
KBW bank index jumped 5.3 per
cent, with JPMorgan Chase & Co
up 5.2 per cent and Bank of
America up 6.4 per cent.
The Dow Jones climbed to
11,433.18. The Standard & Poors
500 rose to 1,194.89. The Nasdaq
lifted to 2,566.05.
THENEW YORK
REPORT
23
In association with
Zurich Insurance plc
Business Features
PROFESSIONAL
SERVICES NEED
AN EYE ON RISK
DAVE CAREY
HEAD OF CORPORATE,
ZURICH INSURANCE
T
HE UK is a world leader in professional servic-
es and the sector has grown rapidly on the
back of corporate and property deals as well
as private and public sector businesses out-
sourcing work. According to the Professional and
Business Services Group, professional service firms
such as accountants, actuaries, engineers, survey-
ors, market researchers, lawyers, management con-
sultants and architects make up 8 per cent of the
UKs total output. However, the downturn in the UK
and world economies has hit this sector very hard,
very quickly, making it even more important to help
customers guide their way through the turmoil.
Defined as any office-based organisation that
gives advice, the Professional and Business
Services (PBS) sector is a major UK employer,
accounting for around 11 per cent of total employ-
ment, representing a significant part of the UK
economy. With such a changing industry, its
important to be aware of the changing associated
risks. And what are those risks? Professional
indemnity, property, casualty, fraud, environmental,
disaster recovery, risk management; they are all
factors PBS companies need to be able to cope
with to address existing and emerging risks.
But its not just protection PBS businesses need.
Its also the support they need to identify and capi-
talise on the opportunities that do exist out there.
Naturally youd expect a company of the calibre
of Zurich to have expertise in this area, and natu-
rally we always look to pass on the best value and
our expertise across the risk spectrum to our bro-
kers and professional and business services cus-
tomers. If a business has a broader understanding
of its own risk profile, then its easier for us all to
work together to help create a sustainable busi-
ness for the future. Can you, hand-on-heart, say
that youve looked at that in the last 12 months? If
not, wed suggest a day spent doing so now could
help you get through the next 12 months.
For more visit: www.zurich.co.uk/expertise or
speak to your insurance broker.
Barnier leak may hang
the Big Four out to dry
In a continuing series that investigates key sectors of the UK economy,
Philip Salter looks at a regulatory risk to professional business services
R
ECENTLY a leaked document
from the European
Commissions (EC) Michel
Barnier made front pages,
including that of City A.M.. The
details of what could come to be
concrete proposals threaten the Big
Four accountancy firms PwC,
KPMG, Deloitte and Ernst & Young.
The stakes are high: one of
Londons, and the UKs, most suc-
cessful industries is under attack.
SLEDGEHAMMER TO CRACK A NUT
The most radical proposal in
Barniers leak is the suggestion of
audit-only firms. This would prohib-
it the Big Four from offering both
audit and professional services.
James Chalmers, who is the UK
head of assurance at PwC, describes
it as an extraordinary interven-
tion, which could severely disrupt
services available to companies. He
adds: There are many situations
where the knowledge and insight
we gain through our role as auditor
make us best-placed to assist organ-
isations with a range of issues and
challenges impacting their busi-
nesses. Chalmers also says: We
also use the skills and capabilities
from people right across the firm to
ensure that we are able to deliver
the highest quality audits. These
include tax, actuarial and technolo-
gy skills.
Oliver Tant, head of audit at
KPMG, describes the proposals as
clearly pretty radical, saying the
idea of audit-only firms is ill-con-
ceived. Tant likes the idea, touted
in the leak, of attempting to create
EU-wide market standards, but he is
very concerned that audit-only
rules would diminish the quality of
the service.
Chief executive of the Institute of
Chartered Accountants in England
and Wales (ICAEW) Michael Izza
points out that accountancy is the
biggest single recruiter of gradu-
ates. He posits that audit-only
firms wouldnt be such an attrac-
tive destination. Similarly,
Chalmers says accountancy firms
in the UK attract highly-talented
people because of the variation of
work they offer and the ability to
move easily around different parts
of the firm and expand their knowl-
edge-base. He says that because we
live in a global workplace with a
highly mobile workforce, if these
proposals are carried through, peo-
ple may simply choose to work else-
where in the world.
FRENCH REFLECTIONS
One of the proposals from the
leaked document is to force joint
audits, in which an audit is under-
taken by two or more auditors to
produce a single audit report.
Unsurprisingly, the Big Four are not
keen on the idea. A spokesman at
Deloitte responded: We do not sup-
port certain matters that have been
discussed such as joint audits.
Equally unsurprisingly, a few audi-
tors that would pick up business are
in favour. However, even companies
that could potentially gain from
forcing businesses to take on two
audits were largely against the plan.
PwC notes: Based on an analysis of
responses to this consultation, over
two thirds of respondents were
opposed to joint audits.
Joint audits are already mandato-
ry in France. Contrary to its aims,
the Big Four still dominate joint
auditing has failed to break their
dominance. Meanwhile French
banks dont look to have benefited
greatly from the practice. Firms out-
side the big four arent employed by
businesses because they arent con-
sidered rightly or wrongly to be
up to the task. Also, the smaller
Drowning out good
auditors
Picture: GETTY
auditing firms arent ready to step
up to the plate by merging to com-
pete.
MERRY-GO-ROUND
Another requirement in Barniers
leak is for mandatory rotation of
accountancy firms. The idea is for a
fresh pair of eyes to take a look at
the accounts. The managing direc-
tor of specialist recruiters Marks
Sattin points out that in 2003 the
US General Accounting Office
looked at this issue in its Required
Study on the Potential Effects of
Mandatory Audit Firm Rotation.
This report found that nearly all of
the Fortune 1,000 public companies
believed the costs of mandatory
audit firm rotation would exceed
the benefits, and that 80 per cent
of the Fortune 1,000 public compa-
nies and largest 90 accountancy
firms operating in the US said they
believed changing audit firms
increased the risk of an audit fail-
ure. Also, the financial costs and
loss of knowledge of rotation are a
high price to pay.
The failure of the bureaucratic
mind is its inability to understand
the benefits of failure and the dan-
ger of moral hazard. Auditors
should thrive and perish by their
reputations and the 2007/8 finan-
cial crisis has certainly thrown up
many challenges. These tests can
only be met from those within the
industry itself whether from with-
in or outside the Big Four not by
the regulators. Although still in its
early stages, if this leaked docu-
ment manifests itself into policy, it
could turn out to be a dangerous
bargaining chip in the UKs almost
inevitable renegotiations with its
European partners, as they move
towards closer fiscal integration to
try to smother their sovereign debt
and banking crises. Strong foundations require planning for all the dangers Picture: REX:
24
The Forum
O
VER the weekend, the nationalisation
of Dexia Belgium was announced,
with other parts of Dexia being bro-
ken up. On Monday, the nationalisa-
tions of a Greek bank (Proton) and a Danish
bank (Max) followed. Full-blown Greek
default is now imminent, the US and
Eurozone economies appear to be in a soft
patch, if not yet a double dip, and banking
losses (or expected losses) are mounting.
Perhaps it will all blow over. Even if it
escalates into a wider crisis, perhaps UK
banks will not collapse. But suppose they do
what then? It is surely not politically plau-
sible that the government, having imposed
large tax rises and spending cuts, could
announce a third major recapitalisation
of British banks (following those of
late 2008 and early 2009).
I opposed even the first two
recapitalisations, believing them
immoral and economically
destructive. But if the banks go
bust again, recapitalisation will
also be a failed strategy even in
its own misguided terms. Surely
after four years of banking crisis
its time to try something else?
But what? An alternative strat-
egy should aim to mimic what
would happen in a well-function-
ing market. Those that lent their
money to failed banks should be
the ones that make the losses. The
rest of society should not be
responsible for the losses of the
wealthy. Losses for lenders! that
should be our motto.
Two key groups of people lend
money to banks. First, depositors; sec-
ond, bondholders. Bondholders should
rank below depositors as claimants on a
failed bank. In other words, when a bank
goes bust, the bondholders should lose their
money before depositors do. A slight variant
on this would be for bondholders and large
depositors to rank below smaller depositors
(say, those below the governments 85,000
deposit insurance threshold) this is actual-
ly strictly what the Vickers Report recom-
mends.
In a normal business, if it goes bust, it
falls into the hands of its creditors those
that have lent it money come to own its
assets. That is what should happen to a
bank as well. If it goes bust, its bondholders
(and perhaps its large depositors) should
own it. In practical terms, that means that
their loans are converted into shares in the
bank.
In this way, the bank gets new capital
new shares out of its bondholders, instead
of the government injecting taxpayer funds
(recapitalisation or, not to mince words,
partial nationalisation). So the bank isnt
shut down. The depositors can still with-
draw their money. The bank carries on mak-
ing loans. But it has new owners the
former bondholders and it has fewer debts
(because some of its bonds have gone, con-
verted into equity).
Such a debt-equity conversion can be
done very quickly over a weekend, say, or
certainly in no more than a fortnight. If it
ends up taking any time, then there is the
question of how to maintain service to
depositors. That can be done by taking a dis-
tressed bank into special administration.
When a normal company goes bust, it is
taken over by administrators. The adminis-
trators in the case of banks would be the
Bank of England or the Treasury.
When a bank is in special administration,
depositors should be able to make with-
drawals as usual, if the bank is solvent and
has only been placed in administration
because it is a bit low on capital. If the bank
might be insolvent, then depositors should
be able to withdraw 80 per cent of their
funds (above the 85,000 deposit insurance
threshold). Either way, deposit withdrawals
would technically count as borrowings from
the government (the government should set
up a special deposit access fund say a tril-
lion pounds in size, funded by newly print-
ed money or quantitative easing bonds to
fund this). If the bank is ultimately liquidat-
ed and its assets arent sufficient to pay
back the government for all deposits with-
drawn, then those depositors owe the gov-
ernment a tax liability for the difference.
If, on the other hand, banks are solvent
and well-managed but simply have liquidity
problems, then the Bank of England should
provide unlimited lending to them. This is
not a form of bailout. Lending to banks with
liquidity problems in a crisis is fundamen-
tally what a central bank is for.
So, if banks are solvent, they should be
lent money. If they are insolvent but still
viable institutions (they still add value
their operating returns are greater than
their costs, before financing costs), they
should be recapitalised from their bond-
holders. If they are unviable, value-destroy-
ing entities, then they should be broken up,
liquidated. Thats what the market would
do. Thats what the government should do
now.
No more tax-payer bailouts of the rich by
the poor. Losses for lenders! that must
be our motto this time.
Andrew Lilico is an economist with Europe
Economics and a member of the Shadow Monetary
Policy Committee.
Those that lent their money
to failed banks should be the
ones that end up losing out.
This economist believes we
shouldnt bail out the banks:
Let their lenders pay instead
cityam.com/forum
ANDREW LILICO
25
George Osborne
should turn east
to see low taxes
bringing growth
Hong Kong has a
budget surplus
the UK could too
W
HEN Vince Cable arrived too late to
hear Hong Kong chief executive
Donald Tsang speak at a special
dinner in London three weeks ago,
some suggested he was saving face. Indeed,
where would Cable have looked while Tsang
was expounding on Hong Kongs HK$71.3bn
(5.84bn) budget surplus? How does it feel to
be the representative of no-growth Britain?
Some say it is cynical others that its
tragic: the UK was the fount of the greatest
economic miracle the world has ever seen,
yet it continues to opt for the stagnation of
yesteryear instead. It was John
Cowperthwaite, a British civil servant, who
introduced Hong Kongs free-market eco-
nomics, lifting Hong Kongs per capita
income from 28 per cent of the UKs in 1960
to 131 per cent in 2010.
At the Hong Kong dinner, some Brits in
the room looked green with envy when
Tsang boasted about the HK$6,000 cheque
that each one of Hong Kongs 6m permanent
residents aged 18 or above will receive from
the Hong Kong revenue. In addition, 75 per
cent of salary taxes will be waived, up to a
maximum of HK$6,000 per taxpayer.
Not that there is much tax to waive. That
De Beers, Chateau Lafite, Rolls Royce, and
Vuitton are doing so well in Hong Kong is
not thanks to the tourists, but because of the
size of the locals take-home pay.
Corporations in Hong Kong pay a flat tax of
16.5 per cent. Individuals pay a salary tax
that is stepped from 2 to 17 per cent, with
numerous deductions (mortgages, charita-
ble giving, education, pensions, care of elder-
ly relatives). But the total is topped to 15 per
cent, meaning that one can choose to pay
whatever is the lowest.
Because of the deductions, most employ-
ees pay little or no tax. The top 2 per cent
choose the top 15 per cent rate they
account for half of all salary tax revenue.
Hong Kongs low taxes nonetheless pro-
duce a budget surplus of HK$71.3bn. That is
after all possible public works and other
plans have been taken care of. (Government
spending is 18.6 per cent of GDP). An equiva-
lent budget surplus to Hong Kongs would
amount to 51bn for the UK, adjusted for
population size.
Hong Kong remains the greatest example
on earth of the Laffer curve: proof that total
tax revenue can rise through economic
growth if you lower taxes. Even today, Hong
Kong routinely lowers its tax rates the max-
imum rate for its salary tax was 16 per cent
back in 2004/2005. As such, Hong Kong has
continuously been the worlds most free
economy since the Index of Economic
Freedoms inception in 1995. In 2010, Hong
Kongs economy grew by 6.8 per cent; the UK
economy grew by 1.25 per cent.
The UK could do this too. It chooses not to,
which encourages individuals and business-
es to flee to places like Hong Kong. It is very
odd: one would have assumed that the coali-
tion government wanted to receive more
money, not less.
JP Floru is the author of What the Immigrant
Saw, published by Bretwalda Books 9.99.
How to cut the EU
The EU has an opportunity to
wrong foot its detractors with
its next seven-year budget,
which is starting to be negotiat-
ed. The signs, however, are not
good. The European Commission
and Parliament have proposed
increases for 2012, of 4.9 per
cent and 5.2 per cent respective-
ly. The debate needs to change
it is not anti-European to say we
should do more with less.
Generally, the Commission is a
liberalising force in the EU.
Instead of suggesting an
increase, it should look at the
dire economic situation across
Europe and think hard how to do
more with less. We have pub-
lished a costed alternative that
shows it is possible to cut the
budget by 10 per cent (saving
the EU over 100bn and Britain
over 10bn) while spending
more on European growth and
development.
Phillip Souta, Director,
Business for New Europe
Speak your mind
The Forum is open for you to
take part. Got a sharp comment
on one of todays columns or
rapid response topics? Do you
have another subject relating to
business and the economy you
want to share your opinion on?
We want to hear your views.
Readers are invited to comment
on the web: cityam.com/forum;
by email: theforum@cityam.com;
and on Twitter: @cityamforum.
The best responses will be
reprinted in The Forum.
RAPID RESPONSES
In association with
JP FLORU
BY ANTHONY J. EVANS
The Forum
I
CRITICISED quan-
titative easing (QE)
early last year on
the grounds that
the conditions under
which QE would be
rehabilitated arent
clear. With the start
of another round of QE
in the UK this week, my
fears are being realised.
I can understand the objectives behind QE
that central banks have a responsibility to prevent
a collapse in nominal spending. Few people now
think that the Federal Reserve handled the great
depression in the right way, by passively allowing
the money supply to contract. However, I think
this could be accomplished using the Bank of
Englands existing authority as a lender of last
resort. If the Bank is unable to follow Bagehots
rule of lending to solvent banks at penalty rates
then what is it good for?
The original justification for QE was twofold.
First, as Sir Mervyn King wrote in his letter to
Alistair Darling, the Committee unanimously con-
cluded that it might be necessary to use asset
purchases at future meetings to meet the 2 per
cent target for CPI inflation. But even if you feel
that CPI fully captures inflation, and even if you
feel that the current level of 4.5 per cent is tem-
porary, the Bank does not look in danger of deliv-
ering below target inflation.
The second justification was that the money
supply would otherwise contract, and this may
have been true in 2008. But in 2011 it is less
clear. What we know is that the established
measures that the Bank should be looking at
such as the broad money supply measure M4X
are rising.
My concern is that the power to engage in QE
was granted in the middle of a liquidity crisis, but
is now being used to quite different, far less eco-
nomically legitimate ends: as a political tool to
boost aggregate demand.
This should have been an evident danger from
the start. There is a perverse dynamic to interven-
tion whereby the failure of one policy tends to
deliver even more discretion and power to policy-
makers next time around.
Witness the madness of Osbornes credit eas-
ing, which is even less neutral than buying gilts,
disrupts relative prices in a more harmful way,
and deepens the socialisation of the banking sys-
tem. It seems the rulebook has been tossed out of
the window, and blind experimentation prevails.
Rather than viewing central bankers as fallible
bureaucrats, they are fast becoming a convenient
scapegoat for incumbent politicians.
There was a naivety among economists who
supported QEs initial use. They failed to factor in
how the precedent would alter incentives for
future policy and grow the downside risks of inap-
propriate use in the future. This is why a plausible
exit strategy should have been laid out. You dont
need to be a conspiracy theorist to assume that
politicians and central bankers have an incentive
to dramatise the situation watch the testimony
of Hank Paulson and Ben Bernanketo the Senate
Banking Committee in 2008 over the Troubled
Asset Relief Program (TARP) for a prime example.
The strongest argument against QE1 was that
it made QE2 more likely. Now the genie is out of
the bottle, who knows how this will all end?
Anthony J. Evans is Associate Professor of
Economics at Londons ESCP Europe Business
School, and Fulbright Scholar-in-Residence at
San Jose State University. His website is
www.anthonyjevans.com.
Watch what you wish
for from the QE genie
Email: theforum@cityam.com
Twitter: @cityamforum
B
RITAINS Office of National
Statistics (ONS) will tomorrow
release its UK employment statistics
for September. There are some who
forecast an improvement, but a surprise
isnt altogether out of the question. After
all, trading wouldnt be any fun if you did-
nt get the occasional shock result.
While the UK labour statistics do not
carry with them the same level of market
anticipation as the US non-farm payroll sta-
tistics, which have the potential to create
large market movements, they do act as a
perceived litmus test for the health of the
UK economy.
UK employment has been struggling
somewhat in the last few months as the
overall economy has been flatlining for the
past year, says Angus Campbell, head of
sales for Capital CFDs. Although recent
data from the PMI services and manufac-
turing surprised to the upside last week,
and a small bounce in service sector
employment is expected, the trend for
employment is very much downwards at
the moment.
According to Will Hedden, sales trader
for IG Markets, industry rumblings also
point to disappointing figures: It isnt a
surprise to see such a negative view when
you also see the cautious rhetoric that we
have been hearing from the major
recruiters. Hedden adds: Wednesdays
data is currently being forecast as an
improvement, but if you consider that we
are hearing much more about job losses
than job creation in the news, the possibili-
ty of disappointment in the headline rate
of unemployment is high.
TROUBLE ACROSS CHANNEL
It would not be an article in a financial
newspaper without a warning of the effects
The ONS statistics
due this week could
be a disappointment,
writes Craig Drake
Any cuts to job centre queues are likely to be small Picture: REX
UK labouring over any
growth in employment
A
T the beginning of last week, equities were head-
ing lower. On Tuesday, major US stock indices
such as the Dow 30, Russell 2000, and S&P 500
traded below levels last seen at the beginning of
August, although all three subsequently snapped higher
on the same day. The S&P is now up over 8 per cent
from last weeks intra-day low. The trigger for this sharp
reversal was a story that European finance ministers
were close to agreement on action to shore up their frag-
ile banking system. After this, short-covering did the rest
as the bears were squeezed hard with many capitulating.
Stocks, precious metals and copper were among the
main markets to benefit from the turnaround, and all
were lifted further following a better-than-expected
reading on US non-farm payrolls. Fridays release showed
a gain of 103,000 with sharp upward revisions to July
and Augusts numbers. But investors appear wary of
reading too much into this latest print, aware that the US
needs to add around 130,000 jobs each and every month
just to accommodate fresh entrants into the labour mar-
ket. This takes no account of the estimated 7m-plus jobs
lost since the start of the financial crisis.
In any case, despite the abundance of political rheto-
ric, the European debt crisis continues to weigh.
Policymakers have failed to back up their vague promis-
es with any firm action. Sundays meeting between
German Chancellor Merkel and French President
Sarkozy produced more of the same. For now, their
promise to deliver a solution before the start of the G20
summit on 3 November is viewed as a sign that the two
core countries will patch up their differences. Yet there
is a wide gap between the two. France favours tapping
the European Financial Stability Facility to shore up its
banks, while Germany believes that France should deal
with its banking problems on its own.
Later this evening, Alcoa unofficially kicks off the
third quarter US earnings season. Investors will be pay-
ing more attention than ever to forward guidance. If
the recent rash of downgrades to global growth now
feeds through to the corporate sector, analysts will
have to lower their earnings estimates. If so, then
expect the current stock market rally to come to a sud-
den halt.
YOUR ONE STOP FOR
MARKET COMMENTARY.
FX360 is free to everyone. Visit fx360.com
GFT Global Research Team
Kathy Lien, Boris Schlossberg, Matthew Weller, Bradley Gareiss, and David Morrison
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is authorised and regulated by the Financial Services Authority. CD03UK.165.091411
of the Eurozones economic troubles.
According to Jordan Lambert, a trader with
Spreadex: Both Germanys and Frances
recent stagnant growth could be putting
more strain on the UK unemployment situ-
ation as they are two of its biggest trading
partners. And despite Merkozys public
rhetoric that all is well, there seems to be
little sign of any upturn in European
demand. Traders should keep a close eye on
the ONS figures and look to jump on any
shock figures.
Wealth Management| CFDs
DESPITE THE
RHETORIC, EU
DEBT WEIGHS
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
ANALYSIS l Historical UK unemployment figures (m)
1992 2000 Sept 2011
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0
Source: Office of National Statistics
A week full of
stock results:
what to watch
Donata Huggins asks the expert traders
what they think retail stock prices will
do this week in tricky economic times
T
O say we live in interesting
economic times would be an
understatement. Confidence
is low and money is tight. And
retail stocks often show investor
nerves more prominently than
other markets. But it isnt all bad
news: volatility in the market can
serve to make the life of the spread
better more exciting. So with the
week ahead laden with data, we
asked the trading experts what to
expect.
TOMORROW: BURBERRY
Jamieson Blake of London Capital
Group says: Investors may have
looked at Burberrys share prices as
relentless earlier this year, but after
a peak in late July, the company took
a turn for the worse. With a trading
update tomorrow, hopefully the
high end retailer can brush off
reports from the Paris fashion show
that luxury brands could be hit by
the global slowdown fears and rein-
state optimism that looking good
isnt going out of fashion.
TOMORROW: MARKS & SPENCER
Michael Hewson of CMC Markets
says: Marks and Spencer, like a lot
of other retailers, has felt the pres-
sure of the consumer slowdown in
recent months, especially on the
clothing side from cheaper brands
like Primark. Despite this, the
shares have remained remarkably
resilient in the face of higher costs
and price-sensitive consumers.
THURSDAY: WH SMITH
Angus Campbell of London Capital
Group says: Like many high street
retailers, WH Smith is facing tough
times during this consumer down-
turn. Not only are fewer people
going to the shops, but fewer people
are going through the UKs airports,
so WH Smith is feeling the pinch.
Nonetheless, one of the UKs oldest
retail and news shops has continued
to fend off stiff competition from
supermarkets and other outlets fol-
lowing the demerger of its distribu-
tion arm in 2006 and the
introduction of new concept stores.
Its share price has been remarkably
resilient to the recent sell off and
remains firmly above the 5 mark.
THURSDAY: MOTHERCARE
Ian OSullivan of Spread Co says:
High-street retailer Mothercare saw
its share-price get hammered after
announcing a pretty awful trading
statement last week. The outlook for
Thursdays numbers therefore looks
pretty bleak. Despite the shares
being 41 per cent cheaper than a
week ago, there is still too much
uncertainty to be buying them.
FRIDAY: ASOS
Will Heddon of IG Markets says:
Asos is a great company. It is well
run and has delivered fantastic
returns since its flotation. The mar-
ket slide it experienced this summer
has only served to place it in great
value territory. Investors will be
looking for good numbers to return
the share to the levels seen earlier
this year. Its low-overhead, off-high
street nature may shelter it from the
harsh winter facing the more tradi-
tional retailers. The lack of a divi-
dend, however, may deter the more
cautious investors not willing to
take purely capital exposure.
G
OOGLE has been under some pres-
sure recently from two other US
powerhouses in the shape of
Facebook and Apple. Facebook is
becoming ever more competitive in the
advertising sector, while Apple is still
leading the way with its tablet and phone
devices. However, the launch of its new
social media venture, Google Plus, will be
at the forefront of investors minds when
Google reports quarterly earnings on
Thursday. Capital CFDs quotes 513.59-
516.14.
Gold has been strong over the last
week on the back of a falling dollar.
Normally, given the return of risk-
appetite we have seen since the lows in
the markets a week ago, you would
expect gold to suffer. But general
strength in commodities, together with
the tumbling dollar has helped it higher.
Spread Co offers a spread on spot gold
of $1,666.1-$1,666.5.
Telco giant AT&T has been struggling
to regain ground lost since the early
summer after news that its planned
acquisition of the US division of T-Mobile
had been given a less than welcome
reception from regulators. However,
Deutsche Telecom who is trying to sell
the unit is once again stressing that
success here shouldnt be seen as unob-
tainable. Current IG Markets price on
AT&T is $28.87-$28.88.
Craig Drake
THE TIPSTER
INVESTORS
LOGGING INTO
GOOGLE PLUS
There could be profits on the horizon Picture: GETTY
CITYA.M. 11 OCTOBER 2011 27
Wealth Management
LON GD ONCE FIX AM...........1664.00 13.00
SILVER LDN FIX AM ..................32.09 -0.01
MAPLE LEAF 1 OZ ....................34.52 0.74
LON PLATINUM AM................1521.00 0.00
LON PALLADIUM AM...............615.00 17.00
ALUMINIUM CASH .................2176.00 6.50
COPPER CASH ......................7249.00 154.00
LEAD CASH...........................1945.00 2.00
NICKEL CASH......................18705.00 -20.00
TIN CASH.............................22715.00 615.00
ZINC CASH ............................1844.50 1.50
BRENT SPOT INDEX................105.70 1.95
SOYA .....................................1158.25 -5.50
COCOA..................................2652.00 -8.00
COFFEE...................................224.35 -10.05
KRUG.....................................1727.10 13.20
WHEAT ....................................147.25 0.50
AIR LIQUIDE........................................90.99 1.81 100.65 80.90
ALLIANZ..............................................79.71 3.35 108.85 56.16
ANHEUS-BUSCH INBEV ....................39.18 0.34 46.33 33.85
ARCELORMITTAL...............................13.76 0.57 28.55 10.47
AXA......................................................11.53 0.50 16.16 7.88
BANCO SANTANDER...........................6.35 0.02 9.67 5.15
BASF SE..............................................51.06 1.57 70.22 42.19
BAYER.................................................42.17 1.28 59.44 35.36
BBVA......................................................6.52 0.07 9.82 4.94
BMW ....................................................52.99 2.10 73.85 43.49
BNP PARIBAS.....................................32.49 0.94 59.93 22.72
CARREFOUR ......................................17.54 0.28 35.29 14.66
CRH PLC .............................................13.20 0.45 17.40 10.28
DAIMLER.............................................35.37 1.39 59.09 30.52
DANONE..............................................45.56 -0.03 53.16 41.92
DEU.BOERSE OFFRE.........................40.11 1.04 55.75 35.46
DEUTSCHE BANK..............................27.53 0.80 48.70 20.79
DEUTSCHE TELEKOM.........................9.37 0.30 11.38 7.88
E.ON.....................................................17.92 0.52 25.54 12.50
ENEL......................................................3.59 0.08 4.86 2.81
ENI .......................................................14.86 0.32 18.66 11.83
FRANCE TELECOM............................12.99 0.22 17.45 11.12
GDF SUEZ ...........................................23.83 0.02 30.05 18.32
GENERALI ASS...................................12.66 0.27 17.05 10.34
IBERDROLA..........................................5.32 0.04 6.50 4.29
INDITEX ...............................................64.98 1.09 66.60 50.92
ING GROEP CVA...................................5.87 0.23 9.50 4.21
INTESA SANPAOLO.............................1.35 0.07 2.53 0.85
KON.PHILIPS ELECTR.......................14.43 0.61 25.45 12.01
L'OREAL..............................................77.00 1.15 91.24 68.83
LVMH..................................................110.10 2.80 132.65 94.16
MUNICH RE.........................................97.83 2.53 126.00 77.80
NOKIA....................................................4.53 0.13 8.49 3.33
REPSOL YPF.......................................21.79 0.05 24.90 17.31
RWE.....................................................30.65 0.91 55.88 21.22
SAINT-GOBAIN...................................33.18 1.24 47.64 26.07
SANOFI ................................................50.06 0.91 56.82 42.85
SAP......................................................40.00 0.66 46.15 32.88
SCHNEIDER ELECTRIC.....................45.18 1.17 61.83 35.94
SIEMENS .............................................73.80 1.75 99.39 62.13
SOCIETE GENERALE.........................20.76 0.25 52.70 14.32
TELECOM ITALIA..................................0.88 0.02 1.16 0.70
TELEFONICA.......................................15.11 0.16 19.69 12.50
TOTAL..................................................35.91 0.58 44.55 29.40
UNIBAIL-RODAMCO SE...................144.25 0.50 162.95 124.05
UNICREDIT............................................0.97 0.11 2.03 0.64
UNILEVER CVA...................................23.62 -0.25 24.08 20.82
VINCI ....................................................34.40 1.00 45.48 29.49
VIVENDI ...............................................16.24 0.22 22.07 14.10
VOLKSWAGEN VORZ ......................106.35 4.80 152.20 84.63
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5399.00 95.60 1.80
FTSE 250 INDEX . . . . . . . 10140.76 182.78 1.84
FTSE UK ALL SHARE . . . . 2783.97 48.99 1.79
FTSE AIMALL SH . . . . . . . . 703.42 8.49 1.22
DOWJONES INDUS 30 . . 11433.18 330.06 2.97
S&P 500. . . . . . . . . . . . . . . . 1194.89 39.43 3.41
NASDAQ COMPOSITE . . . 2566.05 86.70 3.50
FTSEUROFIRST 300 . . . . . . 963.89 16.26 1.72
NIKKEI 225 AVERAGE. . . . 8605.62 0.00 0.00
DAX 30 PERFORMANCE. . 5847.29 171.59 3.02
CAC 40 . . . . . . . . . . . . . . . . 3161.47 65.91 2.13
SHANGHAI SE INDEX . . . . 2344.79 -14.43 -0.61
HANG SENG. . . . . . . . . . . 17711.06 4.05 0.02
S&P/ASX 20 INDEX . . . . . . 2541.70 79.60 3.23
ASX ALL ORDINARIES . . . 4262.30 130.20 3.15
BOVESPA SAO PAOLO . . 53273.11 2029.49 3.96
ISEQ OVERALL INDEX . . . 2590.87 28.13 1.10
STI . . . . . . . . . . . . . . . . . . . . 2668.30 28.00 1.06
IGBM. . . . . . . . . . . . . . . . . . . 896.68 9.00 1.01
SWISS MARKET INDEX. . . 5718.56 66.33 1.17
Price Chg %chg
AIR LIQUIDE .......................................90.99 1.81 100.65 80.90
ALLIANZ..............................................79.71 3.35 108.85 56.16
ANHEUS-BUSCH INBEV....................39.18 0.34 46.33 33.85
ARCELORMITTAL ..............................13.76 0.57 28.55 10.47
AXA......................................................11.53 0.50 16.16 7.88
BANCO SANTANDER...........................6.35 0.02 9.67 5.15
BASF SE..............................................51.06 1.57 70.22 42.19
BAYER.................................................42.17 1.28 59.44 35.36
BBVA.....................................................6.52 0.07 9.82 4.94
BMW....................................................52.99 2.10 73.85 43.49
BNP PARIBAS.....................................32.49 0.94 59.93 22.72
CARREFOUR......................................17.54 0.28 35.29 14.66
CRH PLC.............................................13.20 0.45 17.40 10.28
DAIMLER.............................................35.37 1.39 59.09 30.52
DANONE..............................................45.56 -0.03 53.16 41.92
DEU.BOERSE OFFRE ........................40.11 1.04 55.75 35.46
DEUTSCHE BANK..............................27.53 0.80 48.70 20.79
DEUTSCHE TELEKOM.........................9.37 0.30 11.38 7.88
E.ON ....................................................17.92 0.52 25.54 12.50
ENEL......................................................3.59 0.08 4.86 2.81
ENI .......................................................14.86 0.32 18.66 11.83
FRANCE TELECOM............................12.99 0.22 17.45 11.12
GDF SUEZ...........................................23.83 0.02 30.05 18.32
GENERALI ASS. .................................12.66 0.27 17.05 10.34
IBERDROLA..........................................5.32 0.04 6.50 4.29
INDITEX...............................................64.98 1.09 66.60 50.92
ING GROEP CVA ..................................5.87 0.23 9.50 4.21
INTESA SANPAOLO.............................1.35 0.07 2.53 0.85
KON.PHILIPS ELECTR.......................14.43 0.61 25.45 12.01
L'OREAL .............................................77.00 1.15 91.24 68.83
LVMH .................................................110.10 2.80 132.65 94.16
MUNICH RE.........................................97.83 2.53 126.00 77.80
NOKIA....................................................4.53 0.13 8.49 3.33
REPSOL YPF ......................................21.79 0.05 24.90 17.31
RWE.....................................................30.65 0.91 55.88 21.22
SAINT-GOBAIN...................................33.18 1.24 47.64 26.07
SANOFI................................................50.06 0.91 56.82 42.85
SAP......................................................40.00 0.66 46.15 32.88
SCHNEIDER ELECTRIC.....................45.18 1.17 61.83 35.94
SIEMENS.............................................73.80 1.75 99.39 62.13
SOCIETE GENERALE ........................20.76 0.25 52.70 14.32
TELECOM ITALIA.................................0.88 0.02 1.16 0.70
TELEFONICA ......................................15.11 0.16 19.69 12.50
TOTAL .................................................35.91 0.58 44.55 29.40
UNIBAIL-RODAMCO SE...................144.25 0.50 162.95 124.05
UNICREDIT............................................0.97 0.11 2.03 0.64
UNILEVER CVA...................................23.62 -0.25 24.08 20.82
VINCI....................................................34.40 1.00 45.48 29.49
VIVENDI...............................................16.24 0.22 22.07 14.10
VOLKSWAGEN VORZ......................106.35 4.80 152.20 84.63
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 ..................0.850 0.00
LIBOR Euro - 12 months ................2.056 0.01
LIBOR USD - overnight...................0.139 0.00
LIBOR USD - 12 months.................0.896 0.01
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 .........................3.750 0.00
European repo rate.........................0.950 0.20
Euro Euribor ....................................1.185 0.00
The vix index ...................................34.01 -2.19
The baItic dry index ........................2.000 0.03
Markit iBoxx...................................233.49 -0.67
Markit iTraxx..................................188.45 -1.69
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.3669 0.0291
C/ 0.8716 0.0120
C/ 104.75 1.9020
/C 1.1476 0.0099
/$ 1.5682 0.0112
/ 120.21 0.8099
FTSE 100
5399.00
95.60
FTSE 250
10140.76
182.78
FTSE ALLSHARE
2783.97
48.99
DOW
11433.18
330.06
NASDAQ
2566.05
86.70
S&P 500
1194.89
39.43
Rexam . . . . . . . . . . . .324.6 3.4 400.0 299.8
RPC Group . . . . . . . .329.0 -2.0 384.8 215.4
Smiths Group . . . . . .958.5 20.0 1429.0 907.5
Brown (N.) Group . . .275.9 7.1 311.2 239.8
Carpetright . . . . . . . . .501.5 13.9 835.5 472.5
Debenhams . . . . . . . . .64.3 1.5 77.4 51.2
Dignity . . . . . . . . . . . .831.0 21.0 854.5 633.0
Dixons RetaiI . . . . . . .12.1 0.5 28.5 10.6
DuneImGroup . . . . . .463.4 12.4 550.0 383.9
HaIfords Group . . . . .313.2 7.7 459.7 268.6
Home RetaiI Group . .126.5 2.8 235.0 105.1
Inchcape . . . . . . . . . .316.0 14.1 425.4 268.1
JD Sports Fashion . .835.5 -12.5 1030.0 753.5
Kesa EIectricaIs . . . . .97.3 5.7 174.0 80.0
Kingfisher . . . . . . . . .258.1 3.2 287.1 217.0
Marks & Spencer G . .330.1 3.7 427.5 301.8
Mothercare . . . . . . . .192.5 3.5 627.5 179.6
Next . . . . . . . . . . . . .2558.0 56.0 2649.0 1868.0
Sports Direct Int . . . .214.7 4.7 266.2 125.5
WH Smith . . . . . . . . . .524.0 -2.0 533.5 433.8
Smith & Nephew . . . .584.0 14.0 742.0 521.0
Synergy HeaIth . . . . .866.5 6.5 981.0 736.0
Barratt DeveIopme . . .90.8 4.2 119.0 67.5
YuIe Catto & Co . . . . .165.4 4.7 253.0 148.0
BaIfour Beatty . . . . . .265.3 8.0 357.3 228.6
GaIIiford Try . . . . . . . .422.0 -8.0 530.0 276.5
Kier Group . . . . . . . .1344.0 21.0 1418.0 1097.0
Drax Group . . . . . . . .471.5 5.0 536.5 353.6
SSE . . . . . . . . . . . . . .1349.0 3.0 1423.0 1108.0
Domino Printing S . .452.1 12.6 705.0 434.3
HaIma . . . . . . . . . . . . .330.8 4.6 429.6 306.3
Laird . . . . . . . . . . . . . .142.3 1.3 207.0 127.9
Morgan CrucibIe C . .263.9 -1.7 357.1 222.3
Oxford Instrument . .720.0 -5.5 1010.0 495.0
Renishaw . . . . . . . . .1006.0 47.0 1886.0 918.0
Spectris . . . . . . . . . .1196.0 6.0 1679.0 1039.0
Aberforth SmaIIer . . .517.0 7.0 714.0 508.5
AIIiance Trust . . . . . .333.7 5.7 392.7 310.2
Bankers Inv Trust . . .379.0 3.7 428.0 346.5
BH GIobaI Ltd. GB .1198.0 -1.0 1210.0 1058.0
BH GIobaI Ltd. US . . . .11.9 -0.1 12.2 10.4
BH Macro Ltd. EUR . . .19.3 0.3 20.1 15.8
BH Macro Ltd. GBP 1970.0 0.0 2070.0 1630.0
BH Macro Ltd. USD . . .18.8 -0.1 20.1 15.8
BIackRock WorId M .616.5 12.0 815.5 574.5
BIueCrest AIIBIue . . .170.5 -0.5 176.2 162.4
British Assets Tr . . . .117.0 1.4 140.5 109.0
British Empire Se . . .442.9 10.4 533.0 409.9
CaIedonia Investm .1553.0 3.0 1928.0 1470.0
City of London In . . .279.7 6.7 306.9 257.0
Dexion AbsoIute L . .134.2 1.4 151.0 130.0
Edinburgh Dragon . .218.4 2.4 262.1 201.4
Edinburgh Inv Tru . . .473.0 7.4 492.2 414.9
EIectra Private E . . .1362.0 48.0 1755.0 1287.0
F&C Inv Trust . . . . . .282.4 4.4 327.9 261.5
FideIity China Sp . . . . .74.0 1.0 128.7 70.0
FideIity European . .1007.0 13.0 1287.0 912.0
HeraId Inv Trust . . . . .447.0 8.0 545.5 419.0
HICL Infrastructu . . . .116.2 0.5 121.3 112.7
Impax Environment . .92.5 -0.3 130.5 88.5
JPMorgan American .816.5 5.0 916.0 721.5
JPMorgan Asian In . .178.7 -0.3 250.8 170.1
JPMorgan Emerging .511.5 9.5 639.0 480.1
JPMorgan European .740.5 17.0 983.5 692.5
JPMorgan Indian I . . .363.5 1.7 502.0 350.0
JPMorgan Russian .455.0 11.0 755.0 415.1
Law Debenture Cor . .341.0 1.0 385.0 309.8
MercantiIe Inv Tr . . . .905.5 13.5 1137.0 856.5
Merchants Trust . . . .375.0 9.2 431.8 347.0
Monks Inv Trust . . . .321.8 8.4 367.9 298.1
Murray Income Tru . .614.0 16.0 673.0 568.0
Murray Internatio . . .886.5 16.5 991.5 818.5
PerpetuaI Income . . .255.0 3.0 276.0 234.1
PoIar Cap TechnoI . .331.0 7.2 391.2 299.5
RIT CapitaI Partn . . .1282.0 11.0 1334.0 1127.0
Scottish Inv Trus . . . .446.0 4.0 524.0 417.0
Scottish Mortgage . .634.0 15.0 781.0 586.5
SVG CapitaI . . . . . . . .197.9 4.6 279.8 180.5
TempIe Bar Inv Tr . . .850.0 -4.5 952.0 791.0
TempIeton Emergin .532.5 10.5 689.5 497.0
TR Property Inv T . . .169.0 5.3 206.1 150.0
TR Property Inv T . . . .75.2 2.0 94.0 69.5
Witan Inv Trust . . . . .433.1 5.5 533.0 401.5
3i Group . . . . . . . . . . .197.0 7.1 340.0 184.1
3i Infrastructure . . . . .119.6 0.1 125.2 112.9
Aberdeen Asset Ma .178.0 3.0 240.0 166.7
Ashmore Group . . . .327.2 2.2 420.0 301.5
Brewin DoIphin Ho . .119.9 0.4 185.4 113.7
CameIIia . . . . . . . . . .8925.5 26.510950.0 8862.5
CharIes TayIor Co . . .134.0 -1.3 193.0 122.0
City of London Gr . . . .74.5 0.0 93.6 70.0
City of London In . . .324.5 3.3 461.5 312.0
CIose Brothers Gr . . .743.0 16.0 888.5 656.5
CoIIins Stewart H . . . .61.8 2.5 90.8 59.0
EvoIution Group . . . . .83.3 4.0 94.0 62.3
F&C Asset Managem .61.1 1.1 92.9 56.1
Hargreaves Lansdo .466.0 15.6 646.5 402.5
HeIphire Group . . . . . . .3.0 -0.1 35.5 2.2
Henderson Group . . .112.7 4.2 173.1 95.1
Highway CapitaI . . . . .14.5 1.0 21.0 6.5
ICAP . . . . . . . . . . . . . .432.8 6.5 570.5 383.7
IG Group HoIdings . .458.0 6.6 553.0 393.6
Intermediate Capi . . .230.3 10.1 360.3 197.9
InternationaI Per . . . .231.5 -22.4 388.8 196.5
InternationaI Pub . . . .115.0 0.1 118.3 108.6
Investec . . . . . . . . . . .368.9 11.6 538.0 331.8
IP Group . . . . . . . . . . . .60.5 0.5 61.0 27.9
Jupiter Fund Mana . .208.0 4.1 337.3 184.9
Liontrust Asset M . . . .67.0 -0.5 94.3 65.0
LMS CapitaI . . . . . . . . .61.5 4.5 64.8 44.8
London Finance & . . .22.5 0.0 23.5 16.5
London Stock Exch .851.5 24.0 1076.0 679.0
Lonrho . . . . . . . . . . . . .15.3 0.3 19.8 12.5
Man Group . . . . . . . . .170.9 3.7 311.0 159.1
Paragon Group Of . .158.3 7.8 206.1 134.6
Provident Financi . .1026.0 4.0 1124.0 728.5
Rathbone Brothers .1049.0 6.0 1257.0 844.5
Record . . . . . . . . . . . . .24.8 -0.5 51.0 20.3
RSM Tenon Group . . .20.8 0.5 66.3 20.3
Schroders . . . . . . . .1370.0 55.0 1922.0 1183.0
Schroders (Non-Vo .1147.0 52.0 1554.0 970.0
TuIIett Prebon . . . . . .355.2 4.6 428.6 327.8
WaIker Crips Grou . . .46.0 0.0 51.5 45.0
BT Group . . . . . . . . . .181.8 3.2 204.1 142.9
CabIe & WireIess . . . .35.4 0.3 56.3 31.3
CabIe & WireIess . . . .28.2 0.6 76.9 26.9
COLT Group SA . . . . .97.5 1.5 156.2 95.1
KCOM Group . . . . . . . .66.5 -0.2 84.0 47.5
TaIkTaIk TeIecom . . .128.5 2.9 168.3 119.8
TeIecomPIus . . . . . . .708.0 -9.0 723.5 370.0
Booker Group . . . . . . .75.0 -0.7 77.9 49.7
Greggs . . . . . . . . . . . .510.0 8.0 550.5 429.1
Morrison (Wm) Sup .302.0 1.3 308.3 262.7
Ocado Group . . . . . . . .92.8 1.9 285.0 88.1
Sainsbury (J) . . . . . . .298.4 6.2 391.5 263.5
Tesco . . . . . . . . . . . . .410.1 4.7 439.7 356.3
Associated Britis . .1095.0 4.0 1182.0 940.0
Cranswick . . . . . . . . .669.0 9.0 896.0 588.5
Dairy Crest Group . . .345.4 0.4 424.9 325.0
Devro . . . . . . . . . . . . .254.0 -1.0 296.9 218.0
Premier Foods . . . . . . . .5.1 -0.7 35.1 5.0
Tate & LyIe . . . . . . . . .628.0 -6.0 656.0 487.0
UniIever . . . . . . . . . .2019.0 -1.0 2081.0 1777.0
Mondi . . . . . . . . . . . . .508.0 23.0 664.0 450.1
Centrica . . . . . . . . . . .309.8 1.1 345.8 282.6
InternationaI Pow . . .328.6 0.6 448.6 279.4
NationaI Grid . . . . . . .646.0 -3.5 653.0 530.0
Northumbrian Wate .463.6 -0.1 469.5 295.5
Pennon Group . . . . . .699.0 -1.5 737.5 583.0
Severn Trent . . . . . .1571.0 5.0 1580.0 1327.0
United UtiIities . . . . .622.0 -2.5 631.5 543.5
Cookson Group . . . . .474.9 13.3 724.5 395.8
DS Smith . . . . . . . . . .180.6 5.5 266.2 161.7
BAE Systems . . . . . .270.4 1.9 369.9 248.1
Chemring Group . . . .532.0 2.0 736.5 485.0
Cobham . . . . . . . . . . .175.4 1.7 245.6 168.5
Meggitt . . . . . . . . . . . .351.2 11.1 397.6 303.9
QinetiQ Group . . . . . .116.7 1.6 136.3 96.7
RoIIs-Royce Group . .617.0 7.5 665.0 557.5
Senior . . . . . . . . . . . . .156.8 6.2 190.6 131.1
UItra EIectronics . . .1585.0 20.0 1895.0 1305.0
Hansen Transmissi . . .65.9 -2.0 67.9 32.5
GKN . . . . . . . . . . . . . .185.7 4.4 245.0 157.0
BarcIays . . . . . . . . . . .172.1 7.4 333.6 138.9
HSBC HoIdings . . . . .519.1 10.1 730.9 473.6
LIoyds Banking Gr . . .35.7 1.0 73.8 27.6
RoyaI Bank of Sco . . .24.6 1.0 49.0 19.7
Standard Chartere .1385.0 58.0 1950.0 1169.5
AG Barr . . . . . . . . . .1203.0 -12.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .315.0 -2.7 503.5 289.9
Diageo . . . . . . . . . . .1271.5 -0.5 1307.0 1107.0
SABMiIIer . . . . . . . . .2276.0 53.5 2340.0 1979.0
AZ EIectronic Mat . . .241.5 10.4 338.1 206.1
Croda Internation . .1764.0 54.0 2081.0 1367.0
EIementis . . . . . . . . . .128.5 5.0 187.4 103.0
Johnson Matthey . .1751.0 69.0 2119.0 1523.0
Victrex . . . . . . . . . . .1175.0 -2.0 1590.0 1025.0
Price Chg High Low
BeIIway . . . . . . . . . . . .684.5 11.0 753.5 511.0
BerkeIey Group Ho .1204.0 -12.0 1299.0 789.5
Bovis Homes Group .450.0 5.0 464.7 326.5
Persimmon . . . . . . . .493.8 8.8 502.5 336.5
Reckitt Benckiser . .3393.0 7.0 3648.0 3015.0
Redrow . . . . . . . . . . . .117.6 1.1 139.0 98.4
TayIor Wimpey . . . . . . .37.0 1.4 43.3 22.3
Bodycote . . . . . . . . . .253.0 2.7 397.7 225.6
Charter Internati . . . .872.0 2.0 876.5 538.5
Fenner . . . . . . . . . . . .337.8 13.1 422.5 245.7
IMI . . . . . . . . . . . . . . . .778.5 17.5 1119.0 636.5
MeIrose . . . . . . . . . . .303.5 10.4 365.4 265.7
Northgate . . . . . . . . . .256.0 6.9 346.7 202.0
Rotork . . . . . . . . . . .1598.0 14.0 1895.0 1501.0
Spirax-Sarco Engi . .1813.0 3.0 2063.0 1649.0
Weir Group . . . . . . .1650.0 73.0 2218.0 1375.0
Ferrexpo . . . . . . . . . . .309.1 11.7 499.0 238.7
TaIvivaara Mining . . .214.1 9.1 622.0 199.4
BBAAviation . . . . . . .178.3 3.1 240.8 156.0
Stobart Group Ltd . . .126.7 -1.3 163.6 122.0
AdmiraI Group . . . . .1246.0 8.0 1754.0 1227.0
Haynes PubIishing . .215.0 0.0 257.0 202.5
Huntsworth . . . . . . . . .60.3 -0.3 85.0 56.0
Informa . . . . . . . . . . . .350.1 11.1 461.1 313.9
ITE Group . . . . . . . . . .176.0 2.9 258.2 157.7
ITV . . . . . . . . . . . . . . . . .63.4 0.8 93.5 51.7
Johnston Press . . . . . . .4.8 0.0 14.3 4.4
MecomGroup . . . . . .142.0 0.8 310.0 135.3
Moneysupermarket. . .98.9 0.8 120.4 75.7
Pearson . . . . . . . . . .1159.0 4.0 1207.0 926.0
PerformGroup . . . . .210.0 6.4 234.5 150.0
Reed EIsevier . . . . . .518.0 3.5 590.5 461.3
Rightmove . . . . . . . .1262.0 33.0 1307.0 736.5
STV Group . . . . . . . . . .97.0 -1.0 168.0 90.3
Tarsus Group . . . . . .137.5 2.5 165.0 112.5
Trinity Mirror . . . . . . . .43.3 -0.3 108.0 37.5
UBM . . . . . . . . . . . . . .473.5 2.6 725.0 416.0
UTV Media . . . . . . . . .121.6 2.6 150.0 101.0
WiImington Group . . .89.0 0.0 183.0 82.5
WPP . . . . . . . . . . . . . .627.5 0.5 846.5 578.0
YeII Group . . . . . . . . . . .3.9 -0.2 16.1 3.7
African Barrick G . . .532.0 -6.0 623.5 393.5
AIIied GoId Minin . . .165.6 5.5 281.3 34.4
AngIo American . . .2417.0 87.0 3437.0 2138.5
AngIo Pacific Gro . . .265.0 9.0 369.3 237.9
Antofagasta . . . . . . .1094.0 31.0 1634.0 900.5
AmIin . . . . . . . . . . . . .294.4 3.5 427.0 270.6
BeazIey . . . . . . . . . . . .119.2 0.1 139.2 109.6
CatIin Group Ltd. . . .390.9 8.0 421.4 329.0
Hiscox Ltd. . . . . . . . . .383.6 6.1 424.7 340.5
Jardine LIoyd Tho . . .664.5 3.5 709.0 566.0
Lancashire HoIdin . . .726.5 19.5 733.5 529.0
RSA Insurance Gro . .113.5 0.6 143.5 106.0
Aviva . . . . . . . . . . . . . .329.3 10.7 477.9 275.3
LegaI & GeneraI G . . .105.1 3.9 123.8 89.8
OId MutuaI . . . . . . . . .113.3 5.5 145.2 98.1
Phoenix Group HoI . .475.0 -4.8 699.5 451.1
PrudentiaI . . . . . . . . .610.5 21.0 777.0 509.0
ResoIution Ltd. . . . . .266.0 2.9 316.1 211.3
St James's PIace . . . .332.9 11.5 376.0 236.2
Standard Life . . . . . . .210.5 5.4 244.7 172.0
4Imprint Group . . . . .209.0 4.0 295.0 200.0
Aegis Group . . . . . . .132.2 4.0 163.5 119.4
BIoomsbury PubIis . .101.0 2.3 138.0 95.1
British Sky Broad . . .677.0 2.0 850.0 618.5
Centaur Media . . . . . . .39.3 0.8 73.0 36.0
Chime Communicati .190.3 2.8 298.5 173.0
Creston . . . . . . . . . . . .85.5 4.5 121.0 72.0
DaiIy MaiI and Ge . . .383.4 4.0 594.5 343.4
Euromoney Institu . .605.0 6.5 736.0 522.5
Future . . . . . . . . . . . . . .10.1 0.3 30.0 9.8
Aquarius PIatinum . .193.0 7.2 419.0 163.1
BHP BiIIiton . . . . . . .1920.5 53.0 2631.5 1667.0
Centamin Egypt Lt . . .95.4 0.5 197.1 89.7
Eurasian NaturaI . . .639.5 10.5 1125.0 522.0
FresniIIo . . . . . . . . . .1717.0 54.0 2150.0 1223.0
GemDiamonds Ltd. .204.0 2.0 306.0 179.8
GIencore Internat . . .424.7 2.7 531.1 348.0
HochschiId Mining . .469.3 16.1 680.0 397.0
Kazakhmys . . . . . . . .886.5 29.0 1671.0 730.0
Kenmare Resources . .37.8 1.5 59.9 17.2
Lonmin . . . . . . . . . . .1103.0 40.0 1983.0 974.5
New WorId Resourc .479.5 5.6 1060.0 410.5
PetropavIovsk . . . . . .639.5 32.5 1165.0 543.5
RandgoId Resource 6490.0 90.0 7215.0 4425.0
Rio Tinto . . . . . . . . .3247.5 83.5 4712.0 2712.5
Vedanta Resources 1200.0 40.0 2559.0 948.0
Xstrata . . . . . . . . . . . .937.1 27.1 1550.0 764.0
Inmarsat . . . . . . . . . . .471.2 9.6 719.5 389.7
Vodafone Group . . . .173.3 3.6 182.8 155.1
Genesis Emerging . .446.3 5.8 568.0 430.0
Afren . . . . . . . . . . . . . . .86.7 4.4 171.2 73.6
BG Group . . . . . . . . .1315.0 5.5 1564.5 1144.0
BP . . . . . . . . . . . . . . . .405.2 11.6 509.0 363.2
Cairn Energy . . . . . . .297.9 5.7 469.7 261.4
EnQuest . . . . . . . . . . .101.6 8.1 158.5 86.6
Essar Energy . . . . . .278.0 12.5 589.5 235.1
ExiIIon Energy . . . . . .245.5 5.8 469.7 184.2
Heritage OiI . . . . . . . .240.1 6.8 486.0 190.0
Ophir Energy . . . . . . .241.0 17.3 299.0 184.5
Premier OiI . . . . . . . . .372.4 11.9 535.0 310.0
RoyaI Dutch SheII . .2120.0 51.0 2326.5 1883.5
RoyaI Dutch SheII . .2149.5 56.5 2336.0 1890.5
SaIamander Energy .209.5 3.9 317.6 182.3
Soco Internationa . . .337.5 -2.8 454.7 279.8
TuIIow OiI . . . . . . . . .1408.0 46.0 1493.0 945.5
Amec . . . . . . . . . . . . .852.0 22.0 1251.0 740.5
Hunting . . . . . . . . . . .592.5 23.5 817.0 530.0
Kentz Corporation . .440.0 -1.6 494.5 275.5
LampreII . . . . . . . . . . .275.3 14.3 395.2 228.7
Petrofac Ltd. . . . . . .1298.0 55.0 1685.0 1108.0
Wood Group (John) .570.5 31.5 715.8 432.5
Burberry Group . . . .1261.0 21.0 1600.0 959.5
PZ Cussons . . . . . . . .338.6 10.9 409.0 320.5
Supergroup . . . . . . . .713.5 -13.5 1820.0 704.7
AstraZeneca . . . . . .3010.0 49.0 3359.0 2543.5
BTG . . . . . . . . . . . . . .276.1 10.1 309.7 210.1
Genus . . . . . . . . . . . .1042.0 8.0 1111.0 800.0
GIaxoSmithKIine . . .1390.0 16.5 1394.0 1127.5
Hikma Pharmaceuti .619.0 23.0 900.0 555.5
Shire PIc . . . . . . . . . .2014.0 -9.0 2136.0 1437.0
CapitaI & Countie . . .173.8 2.1 203.7 137.0
Daejan HoIdings . . .2688.0 108.0 2954.0 2282.0
F&C CommerciaI Pr . .97.0 0.0 108.0 88.0
Grainger . . . . . . . . . . . .87.9 0.9 133.2 77.3
London & Stamford .117.0 0.2 140.0 112.9
SaviIIs . . . . . . . . . . . . .291.1 8.2 427.1 256.2
UK CommerciaI Pro . .77.0 -0.2 85.5 70.4
Unite Group . . . . . . . .171.9 2.1 224.1 152.9
Big YeIIow Group . . .258.1 5.3 353.3 234.2
British Land Co . . . . .508.0 -2.0 629.5 452.0
CapitaI Shopping . . .337.0 8.4 424.8 296.4
Derwent London . . .1569.0 12.0 1880.0 1400.0
Great PortIand Es . . .353.3 3.7 445.0 317.4
Hammerson . . . . . . . .400.7 2.7 490.9 353.0
Hansteen HoIdings . . .72.9 -0.1 89.5 70.0
Land Securities G . . .688.5 -4.5 885.0 616.0
SEGRO . . . . . . . . . . . .233.4 4.9 331.3 210.1
Shaftesbury . . . . . . . .495.4 7.0 539.0 431.7
Aveva Group . . . . . .1360.0 22.0 1799.0 1297.0
Computacenter . . . . .369.5 6.5 490.0 323.2
Fidessa Group . . . . .1513.0 41.0 2109.0 1409.0
Invensys . . . . . . . . . . .216.0 5.5 364.3 199.6
Logica . . . . . . . . . . . . .84.9 5.2 147.2 73.9
Micro Focus Inter . . .337.2 3.1 426.2 239.4
Misys . . . . . . . . . . . . .238.2 10.7 420.2 214.9
Sage Group . . . . . . . .273.5 8.7 302.0 231.7
SDL . . . . . . . . . . . . . . .645.5 3.5 711.5 555.0
TeIecity Group . . . . . .577.0 19.0 583.5 430.0
Aggreko . . . . . . . . . .1740.0 50.0 2034.0 1394.5
Ashtead Group . . . . .145.5 6.5 207.9 99.4
Atkins (WS) . . . . . . . .544.5 -0.5 820.0 490.2
Babcock Internati . . .688.0 12.5 733.0 513.5
Berendsen . . . . . . . . .426.4 2.8 568.0 391.3
BunzI . . . . . . . . . . . . .787.0 2.0 812.5 676.5
Cape . . . . . . . . . . . . . .469.9 4.4 591.5 348.8
Capita Group . . . . . . .719.0 8.5 794.5 635.5
CariIIion . . . . . . . . . . .355.3 2.3 403.2 298.8
De La Rue . . . . . . . . .850.5 10.0 853.5 549.5
EIectrocomponents .198.3 5.3 294.9 182.2
Experian . . . . . . . . . . .743.5 -5.0 833.5 665.0
FiItrona PLC . . . . . . . .339.5 7.1 385.5 227.5
G4S . . . . . . . . . . . . . . .276.6 -0.5 291.0 237.7
Hays . . . . . . . . . . . . . . .75.8 3.1 133.6 66.6
Homeserve . . . . . . . .466.1 3.2 532.0 408.0
Howden Joinery Gr . .113.4 8.2 127.5 75.4
Interserve . . . . . . . . . .312.0 2.9 341.3 183.5
Intertek Group . . . . .1865.0 23.0 2148.0 1715.0
MichaeI Page Inte . . .358.0 -5.7 567.0 338.7
Mitie Group . . . . . . . .228.2 3.4 244.0 192.5
Premier FarneII . . . . .165.8 7.3 308.8 144.5
Regus . . . . . . . . . . . . . .67.6 -1.5 119.0 64.0
RentokiI InitiaI . . . . . . .69.2 3.0 104.9 64.8
RPS Group . . . . . . . . .160.5 0.2 253.0 156.6
Serco Group . . . . . . .509.5 3.0 633.0 490.9
Shanks Group . . . . . .108.6 -0.1 130.9 103.0
SIG . . . . . . . . . . . . . . . .94.8 3.3 153.5 83.8
SThree . . . . . . . . . . . .237.0 1.1 447.6 213.2
Travis Perkins . . . . . .816.0 18.0 1127.0 715.0
WoIseIey . . . . . . . . .1741.0 20.0 2261.0 1404.0
ARM HoIdings . . . . . .591.0 36.5 651.0 338.9
CSR . . . . . . . . . . . . . .194.6 6.6 447.0 187.7
Imagination Techn . .428.4 13.1 502.0 296.9
Pace . . . . . . . . . . . . . . .94.9 1.5 231.8 88.1
Spirent Communica .120.7 3.3 160.3 109.5
British American . .2828.0 4.5 2871.0 2282.5
ImperiaI Tobacco . .2153.0 -24.0 2231.0 1784.0
Betfair Group . . . . . . .709.5 9.5 1550.0 567.0
Bwin.party Digita . . . .115.2 -2.5 285.2 100.6
CarnivaI . . . . . . . . . .2121.0 58.0 3153.0 1742.0
Compass Group . . . .528.5 -6.5 612.0 511.5
Domino's Pizza UK . .458.8 2.1 586.0 377.0
easyJet . . . . . . . . . . . .361.4 9.6 479.0 301.0
FirstGroup . . . . . . . . .330.5 5.4 412.6 301.8
Go-Ahead Group . . .1384.0 23.0 1598.0 1097.0
Greene King . . . . . . .440.3 5.5 518.0 410.0
InterContinentaI . . .1083.0 22.0 1435.0 955.0
InternationaI Con . . .163.4 5.8 305.0 141.6
JD Wetherspoon . . . .405.3 2.7 468.3 380.5
Ladbrokes . . . . . . . . .119.7 -0.9 155.3 114.0
Marston's . . . . . . . . . . .93.8 1.8 117.1 84.6
MiIIennium& Copt . .404.2 3.3 600.5 375.6
MitcheIIs & ButIe . . . .247.0 3.7 361.0 216.4
NationaI Express . . .237.0 5.0 270.2 219.6
Rank Group . . . . . . . .124.6 1.6 153.7 109.5
Restaurant Group . . .280.8 4.7 335.0 254.9
Stagecoach Group . .255.9 2.8 272.4 184.8
Thomas Cook Group .44.4 0.4 204.8 33.7
TUI TraveI . . . . . . . . . .162.5 2.6 271.9 137.2
Whitbread . . . . . . . .1622.0 4.0 1887.0 1409.0
WiIIiamHiII . . . . . . . . .232.3 6.0 237.3 155.5
Abcam . . . . . . . . . . . .338.3 5.8 460.0 307.0
AIbemarIe & Bond . .325.0 -6.0 400.1 272.0
Amerisur Resource . . .11.0 0.0 29.0 9.5
Andor TechnoIogy . .500.5 0.5 685.0 340.0
ArchipeIago Resou . . .63.5 -0.3 79.0 32.3
ASOS . . . . . . . . . . . .1537.0 94.0 2468.0 1111.0
AureIian OiI & Ga . . . .17.5 0.8 92.0 16.0
Avanti Communicat .322.5 2.8 735.0 248.5
Avocet Mining . . . . . .239.5 1.3 286.8 173.8
BIinkx . . . . . . . . . . . . .146.0 4.3 158.0 70.5
Borders & Souther . . .49.0 0.5 73.0 43.5
BowLeven . . . . . . . . . .85.5 1.5 398.0 74.5
Brooks MacdonaId 1227.5 6.0 1372.5 907.5
Cove Energy . . . . . . . .82.0 2.0 112.8 61.0
Daisy Group . . . . . . .109.5 -0.5 127.0 88.0
EMIS Group . . . . . . . .528.5 10.5 580.0 375.0
Encore OiI . . . . . . . . . .78.3 2.5 151.5 40.8
Faroe PetroIeum . . . .143.8 2.5 218.3 130.0
GuIfsands PetroIe . . .200.3 2.3 401.5 142.5
GWPharmaceuticaI . .95.0 3.8 130.0 83.0
H&T Group . . . . . . . . .340.0 -2.0 395.0 277.0
Hamworthy . . . . . . . .539.5 7.5 705.0 373.8
Hargreaves Servic .1050.0 30.0 1078.0 676.0
HeaIthcare Locums . . . .5.0 -0.2 5.3 4.8
Immunodiagnostic .1010.0 1.0 1218.0 768.5
ImpeIIamGroup . . . .326.8 -5.8 387.5 138.5
James HaIstead . . . . .460.1 10.1 495.0 345.5
KaIahari MineraIs . . .248.5 2.5 301.0 145.8
London Mining . . . . .317.8 2.8 436.5 283.0
Lupus CapitaI . . . . . . .90.0 -1.3 150.0 86.0
M. P. Evans Group . .402.5 -2.5 500.5 371.0
Majestic Wine . . . . . .416.3 -2.3 510.0 333.5
May Gurney Integr . .293.0 -5.5 302.8 206.3
Monitise . . . . . . . . . . . .38.0 3.0 39.0 18.5
MuIberry Group . . . .1400.0 100.0 1920.0 490.0
Nanoco Group . . . . . . .50.0 0.0 115.8 49.3
NauticaI PetroIeu . . .330.0 25.3 547.0 223.5
NichoIs . . . . . . . . . . . .540.0 11.5 579.0 410.0
Numis Corporation . . .92.5 0.0 137.8 89.0
Pan African Resou . . .12.0 0.3 14.5 8.6
Patagonia GoId . . . . . .55.8 -1.8 70.0 20.3
Prezzo . . . . . . . . . . . . .55.4 0.4 71.5 53.3
Pursuit Dynamics . . .190.0 8.0 700.0 160.5
Rockhopper ExpIor .169.8 -11.3 460.0 141.0
RWS HoIdings . . . . . .435.0 0.0 479.8 266.5
Songbird Estates . . .115.0 0.8 160.3 110.3
VaIiant PetroIeum . . .493.0 -13.0 750.0 435.0
Young & Co's Brew . .600.0 20.0 712.0 530.0
EnQuest . . . . . . . . . . .101.6 8.6
Howden Joinery Gro .113.4 7.8
Ophir Energy . . . . . . .241.0 7.7
ARM HoIdings . . . . . .591.0 6.6
Logica . . . . . . . . . . . . .84.9 6.5
Kesa EIectricaIs . . . . .97.3 6.2
Wood Group (John) .570.5 5.8
LampreII . . . . . . . . . . .275.3 5.5
PetropavIovsk . . . . . .639.5 5.4
Afren . . . . . . . . . . . . . .86.7 5.4
Premier Foods . . . . . . . .5.1 -12.2
InternationaI Pers . . .231.5 -8.8
Hansen Transmissio . .65.9 -2.9
Regus . . . . . . . . . . . . . .67.6 -2.2
Bwin.party DigitaI . . .115.2 -2.1
GaIIiford Try . . . . . . . .422.0 -1.9
Supergroup . . . . . . . .713.5 -1.9
MichaeI Page Inter . .358.0 -1.6
JD Sports Fashion . .835.5 -1.5
TeIecom PIus . . . . . . .708.0 -1.3
Risers FaIIers
MAIN CHANGES UK 350
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Tsy 3.250 11 . . . . .100.29 -0.15 103.1 100.3
Tsy 5.000 12 . . . .101.78 -0.04 106.2 101.7
Tsy 5.250 12 . . . .103.03 -0.05 107.6 103.0
Tsy 9.000 12 . . . .106.81 0.00 114.8 106.5
Tsy 4.500 13 . . . .105.38 -0.07 108.8 105.4
Tsy 2.500 13 . . . .284.20 -0.08 287.7 277.6
Tsy 8.000 13 . . . . .114.21 -0.11 120.7 114.2
Tsy 5.000 14 . . . . .111.64 -0.12 114.1 109.2
Tsy 8.000 15 . . . .127.57 -0.22 131.3 123.7
Tsy 7.750 15 . . . .102.34 0.26 109.0 101.5
Tsy 4.750 15 . . . . .113.78 -0.21 114.8 108.6
Tsy 4.000 16 . . . . .112.14 -0.29 113.4 104.9
Tsy 2.500 16 . . . .341.08 -0.27 342.6 310.2
Tsy 12.000 17 . . .124.19 0.00 134.1 122.5
Tsy 1.250 17 . . . . .114.87 -0.37 115.5 106.7
Tsy 8.750 17 . . . .139.10 -0.64 142.1 132.9
Tsy 5.000 18 . . . . .119.15 -0.41 121.0 109.7
Tsy 4.500 19 . . . . .116.51 -0.65 118.8 105.4
Tsy 3.750 19 . . . . .111.12 -0.71 113.5 99.4
Tsy 2.500 20 . . . .351.98 -0.80 355.9 312.4
Tsy 4.750 20 . . . . .118.37 -0.80 121.4 106.6
Tsy 8.000 21 . . . .146.82 -0.87 151.8 133.8
Tsy 4.000 22 . . . . .112.89 -0.87 115.6 99.0
Tsy 1.875 22 . . . .123.90 -1.17 125.7 111.3
Tsy 2.500 24 . . . .316.50 -1.12 321.6 273.5
Tsy 5.000 25 . . . .123.97 -0.90 126.9 107.4
Tsy 4.250 27 . . . . .115.61 -0.82 118.1 97.9
Tsy 1.250 27 . . . . .119.66 -1.15 121.5 104.6
Tsy 6.000 28 . . . .139.85 -0.85 142.9 119.5
Tsy 4.125 30 . . . .301.23 -1.34 305.4 261.2
Tsy 4.750 30 . . . .122.37 -1.01 125.6 103.0
Tsy 4.250 32 . . . . .114.42 -1.14 117.9 96.0
Tsy 4.250 36 . . . . .114.23 -1.30 117.6 95.0
Tsy 4.750 38 . . . .123.35 -1.41 126.9 102.8
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Lifestyle
29
Sketch and the art of the restaurant
Legendary restaurant
man Mourad Mazouz
talks to Zoe Strimpel
as Sketchs VIP room
returns to Frieze
Q.
WHAT IS SKETCH'S RELATIONSHIP
WITH ART?
A.
Sketch wants to live with its time
and this means engaging with art as a
part of society today. Even if you dont
appreciate contemporary art you
need to have an eye on it and have a
certain interest. Compared to some
other restaurants we have relatively
few pieces here at any time, because
our idea for our installations is to be
always in movement.
Q.
WHAT ROLE DO YOU THINK ART
PLAYS IN CREATING A GLAMOROUS
RESTAURANT?
A.
You can have a glamorous restau-
rant without art. But it wont be
anything special it will be just a
place. These days art is part of the
daily life of people it used to be for a
small circle of people only; now its
everyone. Even my mother is interest-
ed. But Sketch is not just about visual
art. Food is art for me, too.
Q.
HOW DO FOOD AND ART GO
TOGETHER, THEN?
A.
The association with [Sketch chef]
Pierre Gagnaire means Sketch
needs to renew itself constantly and
the art and video installations need to
be part of that. Because with food we
are creating every day. Sketch is dif-
ferent from many places weve done
1,100 recipes in nine years. We cre-
ate dishes and change them a
month after then theyre
gone. We dont keep the
recipes. This is not very good
business-wise when you
dont have fixed dishes you
can lose customers. But
when you are with some-
one like Pierre Gagnaire
you have to keep
changing. He is a
guy who always
creates. Show
Left: the Parlour at
Sketch. The design of
the VIP room at
Frieze has been
inspired by the
Parlour and the
Conduit Street's other
spaces.
During the daytime, the Gallery is a tempo-
rary exhibitions space that specializes in multi-
channel video installations, presenting up to
seven shows per year with emerging and
established international artists and filmmak-
ers. Alongside recent solo exhibitions by
Andrew Ktting, Carsten Nicolai, Paper Rad,
Iain Sinclair & Chris Petit, Noam Gonick and
Amy Granat, the gallery has also produced
shows with John Baldessari, Isaac Julien,
Tracey Emin and Jonas Mekas among many
others. Every evening the Gallery is trans-
formed from art gallery to restaurant with a
separate programme of specially commissioned
temporary exhibitions by emerging designers,
filmmakers and artists.
Sketch also produces and presents touring
projects and cinema screenings such as CIN-
ACT: Serpentine Cinema in collaboration with
the Serpentine Gallery and Picturehouse
Cinemas. www.sketch.uk.com
SKETCH | ART MEETS RESTAURANT
him an empty plate and it can give
him an idea for a dish youd never
have imagined.
Q.
WHY DOES SKETCH PARTNER WITH
FRIEZE?
A.
Because we have been involved in
art pop-ups before, they asked if
we wanted to do it. We started with
the Royal Academy, then Carsten
Hllers The Double Club near Angel,
which was a crazy place half club,
half restaurant; half European, half
Congolese. Given my relationship
with art institutions, its normal for
Frieze to come to us, for us to say yes,
for us to prove that we can do some-
thing nice and neat for Frieze art
fair.
Q.
SKETCH HAS
REMAINED UNIQUE
DESPITE A DECADE OF
NEW OPENINGS IN
LONDON. HOW?
A.
Sketch is
not a
restaurant,
its a
place. In
the
beginning even I didnt know exactly
what Sketch was there was nothing
similar. Its a place and inside the
place there is fine dining, tea room,
brasserie and bars under the same
roof, lots of types of people. That gen-
eral mix didnt work at first so
today, everyone has their own room.
There are some people just there for
fine dining; there are kids in the par-
lour. To mix people is what I love the
most. This is art: the big mix!
Q.
ARE POP-UPS THE FUTURE OF
RESTAURANTS?
A.
No. You can never make money
with pop-ups. The purpose is to do
something else, to learn, to have fun.
Pop-ups are very intense, though:
Frieze is five days; on the first day we
have 1,600 people coming. Im having
nightmares about it!
Q.
DO YOU THINK LONDON IS A SPECIAL
PLACE FOR ART AND FOOD?
A.
Absolutely, because London is a
machine, it needs to clean itself all the
time: there are so many people trying to
live life in a better way. London is hungry
and exciting. For info on Sketch at Frieze go to
vip.friezeartfair.com
Deep Frieze: our pick of art fair highlights
Kiki Smith in the Sculpture Park
Kiki Smiths sculptures are metaphorical
and visceral. Recent work has particular
emphasis on creating images using tech-
niques associated with womens work,
such as 19th-century needlework. Shes
also exhibited in the Solomon R
Guggenheim museum and the
Metropolitan museum of art.
Thomas Houseago
Houseagos sculptures are a must-see.
The sheer presence of his work is impres-
sive and imposing. Houseago has also
An Articulated Lorry
Adorned With
Artwork By Banksy
Arrives Ahead Of The
Start Of Frieze Art
Fair
Picture: GETTY
exhibited at the Saatchi Gallery.
Pierre Huyghe
French artist Pierre Huyghe has created
an aquarium featuring a hermit crab for
a Frieze project commissioned by direc-
tor Sarah McCrory.
Cara Tolmie
Cara Tolmie will be exhibiting a perform-
ance every day just outside the fair. The
London-based Scottish artist who works
with the medium of video, sound and
text, is one to watch.
Frieze film
Frieze Film commissions, which will also
be shown on Channel 4, will be running
during the show until Friday 14 October.
Artists commissioned include Ed Atkins,
Lutz Bacher, Anthea Hamilton, Judith
Hopf and Katarina Zdjelar.
Lectures
If you cant make it down, download a
series of podcast lectures from
www.friezeartfair.com. You can learn
about everything from cultural cartogra-
phy to criticising the critics with artist
Adrian Piper and Jorg Heiser, co-editor of
Frieze magazine.
www.friezeartfair.com
Helena Lee chooses
the fairs six most
interesting works
Below: Mourad
Mamouz, the man
behind Momo and
Sketch.
W
ITH the weather swinging as
wildly as Dita von Teeses
tassles, the chances are the
mild weather of the last few
days will be replaced by dead-of-winter
temperatures any minute now. Such sud-
den changes are a nightmare for the
immune system and theres not much
worse than a Mexican wave of sniffling
and spluttering making its way through
the office towards you. Well, the good
news is you can start priming your
defences now, and preserve your well-
being by taking some precautions. With a
combination of the right exercise and eat-
ing certain foods you will feel noticeably
better and will prepare your body against
the nasty colds and flus that come with
the inevitable shock of wintry weather.
FOOD
In colder weather, its natural for us to
start craving fats and sugar. We must be
careful not to plough sugar into our bod-
ies as it dampens immunity by lowering
the bodys white blood cell count, which
reduces ability to fight infection, says
nutritional therapist and yoga teacher
Charlotte Watts (www.de-
stressyourlife.com). Good foods to eat are
avocados, oily fish, free range meats,
olive oil, and eggs, which also help
our livers deal with fat. The
body relies on antioxidants
to support immunity so
Charlotte recommends
eating healthy cur-
ries with spices
such as turmeric
and chilli. Green
and spicy teas
have good antioxi-
dants, increase circula-
tion and your metabolism.
With fruit and veg, its best to eat as
much as you can. People are often mis-
led about fruit juice, and fool themselves
into thinking they get their hit of fruit.
Fruit juice is packed with sugar. Its better
to eat an actual orange instead of drink-
ing the juice, and theres the added bene-
fit that are lots of antioxidants to be
found in the pith.
Charlotte also suggests eating seasonal
dark rich greens, such as broccoli,
sprouts and kale, and cavolo nero, which
is rich in carotenoids a fat soluble
antioxidant.
EXERCISE
According to personal trainer Matt
Roberts (www.mattroberts.co.uk), if
youre already an exercising gym bunny,
the key to keeping healthy is to main-
tain your normal routine. If youre
feeling slightly lethargic or the a
cold coming, tone down your rou-
tine a little, and keep the sus-
tained pace of cardio work to a
low level. What you dont
want to do is exhaust your-
self and leave your
immune system exposed
to illnesses by overdoing
it, says Matt.
If you actually get a cold,
Matt recommends waiting
a day or two for it to go away.
However, if you just get a passing sniffle,
reduce the intensity of your exercise by
15-20 per cent, and keep it at a moderate
and controlled level. The important thing
is that you are able to breathe comfort-
ably.
Drink plenty of water, and eat within
half an hour of exercising. If you carry
out more intensive exercise there will be
more phlegm build up and you will find
it hard to breathe.
Want to avoid getting
that winter cold?
Helena Lee has some
simple advice to keep
you feeling tip top
Stay healthy and
ward off colds with a
dose of nutrition and
exercise. ONIONS AND GARLIC
Onions and garlic are part of the
allium family. Coming into win-
ter, they are good for helping
the body make vitamin D.
CAVOLO NERO
Nutritional therapist Charlotte Watts recom-
mends eating as much colour as possible. The
seasonal dark green vegetables; cavolo nero,
broccoli and cauliflower are great for detoxify-
ing the body.
BLUEBERRIES
These fruits are packed with vitamin C and
antioxidants. Personal trainer Matt Roberts is
packing a lot of these at the moment.
CURRIES AND SPICES
Curries contain good antioxi-
dant spices such as turmeric
and chilli. Spicy tea with
ingredients such as ginger are
great for improving circulation.
THE POWER FOODS
Lifestyle
Spice up your diet to ward
off nasty winter viruses
FIT IN
THE CITY
BY LAURA WILLIAMS
FITNESS & DIET EXPERT
Hot topics
this week
BAREFOOT running, toning shoes, green
tea... theres a lot thats being debated at the
moment. In this weeks column, Im separat-
ing the truth from the false on some current
hot topics.
BAREFOOT RUNNING IS BETTER FOR YOU
THAN RUNNING IN TRAINERS: FALSE
This is probably the most hotly debated
exercise topic right now. Experts seem to be
split 50/50 as to whether barefoot running
or running in minimal footwear is good or
bad for you. If youre undecided, take this
advice from the ACE (American Council on
Exercise): Try lower impact training such as
resistance training first if youre new to
barefoot training and if you progress to
barefoot running or running in minimalist
shoes, start by doing just 25 per cent of
your mileage in this way initially.
TONING SHOES TONE: FALSE
Toning shoes hit the headlines again recently
after a well-known brand was forced to pay
out millions in refunds after claiming its
shoes improved bottom muscle tone by 28
per cent. Research undertaken by the ACE
found that the shoes did no more for muscle
tone than regular running shoes. The solu-
tion? Save your money and get squatting.
GREEN TEA HELPS YOU TO LOSE WEIGHT:
TRUE
Not many people dispute this anymore the
evidence continues to stack up. Even more
so with The Mouse Study! According to lat-
est research from Penn State food scientists,
obese mice that were fed a green compound
tea along with a high-fat diet gained weight
significantly more slowly than another
group that didnt take the supplement.
GETTING AN EARLY NIGHT KEEPS YOU
SLIM: TRUE
Back in 2008, Harvard University research
found that toddlers who had less sleep were
more likely to be overweight by the age of 3.
Research just published in Australia revealed
that participants who had late nights and
late mornings were a whopping one-and-a-
half times more likely to be obese than the
early risers. This is definitely a good case for
calling it a day earlier rather than later.
CABLE, BANDS AND TUBES ARE BETTER
FOR MAXING OUT MUSCLE GROWTH:
FALSE
Put simply, your muscles either contract or
they dont. However, mixing your workout
up with cables, kettlebells, bands and dumb-
bells is good for preventing boredom setting
in, if nothing else.
www.laurawilliamsonline.co.uk
Episode 31: The joys of newborns: how to deal with your friends
AS Noel coos over Harry, sleeping in
Emmas arms, I take Gwenllian
yes, I got my way with their names
after all from Gabriella and col-
lapse onto the sofa, resting my feet
on the coffee table in front of me.
Gwenllian snuggles into me.
I call Nick. Im sitting here with
your Goddaughter in my arms, I
say.
Oh, he replies.
Is that oh, Id be delighted to be
her Godfather, or oh, Im horri-
fied? I chuckle.
Just, oh, I havent heard from you
in a while.
Sorry Nick. Its been crazy here. I
know you called a couple of weeks
ago. Im sorry I didnt get back to
you. Right in the middle of a transac-
tion as well.
Yes, says Nick, inexpressively.
Have I caught you at a bad time?
You with someone? I ask.
Actually Dave, Im in a business
meeting Looks like my business is
going bust.
Oh I reply. I take my feet from
the coffee table and sit up.
Yeah. Quite. So you can see why
I'm not all 'oh, I'd be delighted.'"
Wait. There must be something
you can do. You should have called.
As I say this, I realise that Nick had
called. Three times. And I hadnt
called him back.
Gwenllian stirs. Shhh. On the
coffee table I see the huge hamper
from the bank; teas although not
Nicks champagne, foie gras,
cheeses, chocolate truffles and a
heap of other luxury items we wont
have time for any time soon. And
next to it, the handmade card from
Emmas class of eight year olds.
Nick? Silence. Can we meet? I
open the card. The names of all the
children in Emmas class.
Whats the point? Nick says, full
of spite. What can you do? Its not
your bank pulling the finance.
City Dad will be continued next
Tuesday. For previous episodes, see
www.cityam.com
CITY DAD
Drinking green tea helps with weight loss.
Lifestyle
Grab an elegant
satchel or a classic
bag, says Zoe Strimpel
Bag it up baby: luxe goes practical
N
OTHING makes a female mouth
water quite like a beautiful bag.
And, as the City fashionista will
know, practicality must merge with
style for maximum wearability after all,
whats the point in having a beautiful tote
if you cant show it off? With fashions
changing like gusts of wind, its important
to choose a bag thats on trend but has
lasting power.
Luisa De Paula, buying director of
online boutique my-wardrobe.com, says:
This season we have seen the return of
sophisticated classic lines and understated
styles with the bag collections. Bags have
become smaller in size with simplified
structure, moving away from the shoulder
ache-inducing super-size totes of a few sea-
sons ago. A great example of this is the
MySuelly collection, which takes inspira-
tion from the iconic vintage bag styles.
Take the DVF, D&G, Anya Hindmarch,
Marc by Marc Jacobs and Mulberry collec-
tions key sellers have been the Mulberry
Carter and Polly Push Lock tote.
We like the new satchels, which are
both elegant and extremely practical.
And who would have thought it? the
backpack as made a re-entry into the lux-
ury market with an elegant leather twist.
1
Pomegranate Tree
Roddy & Ginger
26, www.roddyandginger.co.uk
2 Robin
Donna Wilson
67.99, www.donnawilson.com
3 We Had Everything
Rob Ryan
47.29, www.etsy.com/shop/misterrob
4 Knitted Floor Cushion, Chartreuse
Ferm Living
155, www.heals.co.uk
5 The Coloured-Sole Shoe
Shoes with coloured soles were as popu-
lar wggests Mark McNairy Derby shoes
6 Double Decker Cushion
39, www.made.com
What and where to buy
Go softly: best
winter cushions
4
3
7
8
9
5
2
6
1
WHAT THEY ARE AND WHERE TO BUY:
1 Leather backpack, The Row, 2,635, www.netaporter.com
2 Desert shoulder bag, Barbara Wiggins. 99, www.barbarawig-
gins.co.uk
3 Stone Large Leather Romilly, Lulu Guinness, 425, in the Royal
Exchange and at www.luluguinness.com
4 Carter Double Handle Bag, Mulberry, 995, www.mulberry.com
5 Tel Aviv studded base leather satchel, Sara Berman, 354,
www.my-wardrobe.com
6 The Classic satchel, Cambridge Satchel Company, 74,
www.cambridgesatchel.co.uk
7 Louise Enna Arrow Lock bag, Mysuelly, 360, Carolina Herrera,
404, www.my-wardrobe.com
8Large Matroshyka, CH Carolina Herrera, 120 Mount Street,
W1K 3NN
9 Colour block tote bag, Top Shop, 34, at One New Change and
www.topshop.com
2
1
3
5
4
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LATER LIVE WITH JOOLS
HOLLAND BBC2, 10PM
Peter Gabriel performs a selection of
his hits, including his 1977 debut solo
single Solsbury Hill, with the 46-piece
New Blood Orchestra.
HIGH STAKES
ITV1, 8PM
A big-money game show in which the
players use clues to guide them across
a grid containing cash prizes ranging
from 1,000 to 500,000.
GOKS CLOTHES ROADSHOW: GET
THE LOOK FOR LESS CHANNEL4, 8PM
The stylist takes his fashion-conscious
show to Birmingham, where he pits
supermarkets against the high street
in an autumn-wear catwalk event.
BBC1
SKY SPORTS 1
6.30pmLive International
Football 9pmFIFA Futbol
Mundial 9.30pmInternational
Football 11pmA League of Their
Own 12amFootball Asia
12.30amFootballs Greatest
1amInternational Football
2.30amFootball Asia 3am
Footballs Greatest 3.30am
International Football 5am
Football Asia 5.30am-6am
Footballs Greatest
SKY SPORTS 2
7pmLive International Football
9.15pmCycle Sports World
9.45pmDTM Motor Racing
10.45pmF3 Euroseries 11.45pm
Masters Tennis 1.45amDTM
Motor Racing 2.45am-3.45am
F3 Euroseries
SKY SPORTS 3
7pmF3 Euroseries 8pmMasters
Tennis 10pmGolfing World
11pmGolf 1.30am-3.30am
International Bowls
BRITISH EUROSPORT
5pmLive Fencing 7.30pm
Eurosport Confidential 8pm
Boxing 9.45pmGT Academy:
Road to Dubai 10pmBritish
Superbikes 10.30pmInside
Racing 11pmWorld Series by
Renault 11.30pm
Intercontinental Rally Challenge
12am-1amEuro 2012: All
Access
ESPN
10pmInternational Football
11.45pmESPN Press Pass
12.15amWorld Series of Poker
2.15amInternational Football
4amPlanet Speed 4.30am
American Le Mans Series
5.30am-6amWorld Enduro
Championship
SKY LIVING
7pmCriminal Minds 8pmSigned
By Katie Price 9pmAmericas
Next Top Model 10pmThe
Secret Circle 11pmBones 12am
Jerry Bruckheimers Chase 1am
Criminal Minds 1.50amCSI:
Crime Scene Investigation
3.30amBones 4.20amMaury
5.10am-6amJerry Springer
BBC THREE
7pmTotal Wipeout 8pmWorlds
Strictest Parents 9pmDont Tell
the Bride 10pmEastEnders
10.30pmWilfred 10.55pm
Family Guy 11.40pmAmerican
Dad! 12.25amDont Tell the
Bride 1.25amSnog, Marry,
Avoid? 1.55amYoung Soldiers
2.55amWilfred 3.15amJono:
Finding My Family on Facebook
4.10am-5.10amSam & Evan
E4
7pmHollyoaks 7.30pmHow I
Met Your Mother 8pmMade in
Chelsea 9pmSmallville 10pm
The Cleveland Show11.05pm
Shameless 12.10amThe Big
Bang Theory 1amScrubs
1.50amHow I Met Your Mother
2.15amShameless 3.10amRules
of Engagement 3.30amReaper
4.15amGlee 5am-6am
Switched
HISTORY
7pmThe True Story 8pm
American Pickers 10pm
American Restoration 11pm
Chasing Mummies 12amMud
Men 1amAmerican Restoration
2amMega Movers 3amThe
True Story 4amPawn Stars
4.30amStorage Wars
5am-6amAncient Discoveries
DISCOVERY
7pmMythbusters 9pmWheeler
Dealers 10pmDeadliest Catch
11pmIce Pilots 12amBear
Grylls 1amBattle Machine Bros
2amDeadliest Catch 3.50am
Wildest Africa 4.40amTreasure
Quest 5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmBirth Days 8pmI Didnt
Know I Was Pregnant 9pmLast
Chance Surgery 10pmKids
Hospital 11pmHospital Sydney
12amLast Chance Surgery 1am
Kids Hospital 2amHospital
Sydney 3amI Didnt Know I
Was Pregnant 4amA Baby
Story 5am-6amDeliver Me
SKY1
8pmGlee 9pmInside Gatwick
10pmFILMMars Attacks!
1996. 12.05am35mm12.35am
Road Wars 2amNight Cops
2.50amThe Dresden Files
4.20amIts Me or the Dog
5.10am-6amTop Design
BBC2 ITV1 CHANNEL4 CHANNEL5
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&
C
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmEastEnders; BBC News
8pmHolby City
9pmThe Body Farm
10pmBBC News
10.25pmRegional News;
National Lottery Update
10.35pmMe, My Sex & I
11.25pmFILMCity by the Sea:
2002.
1.10amWeatherview1.15amSign
Zone: Village SOS 2.15amSign
Zone: Reel History of Britain
3.15amSign Zone: Windfarm Wars
4.15am-6amBBC News
6pmEggheads
6.30pmStrictly Come Dancing
It Takes Two: With Zoe Ball.
7pmCoast: The team explores
the Inner and Outer Hebrides.
7.30pmMatch of the Day Live:
Spain v Scotland (Kick-off
7.45pm).
10pmCHOICE Later Live
with Jools Holland
10.30pmNewsnight; Weather
11.20pmTwincredibles: The
stories of twins who have
different skin colours.
12.20amDamages
1.20amBBC News 4am-6amBBC
Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmMayday Mayday
8pmCHOICE High Stakes
9pm71 Degrees North
10pmITV News at Ten
10.30pmLondon News
10.35pmDCI Banks
11.35pmBilly Connollys Route
66
12.30amThe Zone; ITV News
Headlines
2.35amFILMColumbo: A Matter
of Honour: Crime drama, starring
Peter Falk. 1976. 3.55am-5.30am
ITV Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmCHOICE Goks Clothes
Roadshow: Get the Look for
Less
9pmMary Queen of Frocks 10pm
Shameless 11.05pmRandom Acts
11.10pmTrue Blood 12.25amUK &
Ireland Poker Tour 1.20amChannel
4 Presents Nathan Stephens True
Grit 1.25amSailing 1.50amBritish
GT Championship 2011 2.20am
KOTV Boxing 2.45amBeach
Volleyball 4.05amScrapheap
Challenge 5amGrudge Match
5.15am-6.10amCookery School
6pmHome and Away
6.25pmOK! TV
7pm5 News at 7
7.30pmReal Food Family Cook
Off; 5 News Update
8pmSuperior Interiors with
Kelly Hoppen; 5 News at 9
9pmCSI: Miami
10pmBig Brother
11pmFILMOne Missed Call:
2008.
12.40amInside Hollywood
12.50amSuperCasino 3.55am
County Secrets 4.05amThe Hotel
Inspector 4.55amRough Guide to
Short Breaks 5.10amHouseBusters
5.35am-6amHouse Doctor
1 2 3 4 5 6
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9 10 11 12
13 14 15 16
17 18
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18 7
10 28
21
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35 19
12 29
12 16
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15
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21
33
7
21
4
10
31
12
13
8
14
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 Spoken (5)
4 Ordain (5)
7 Lax (7)
8 Extreme (5)
9 Food provider (7)
13 Grave (4)
16 Certain (4)
17 Not in good
condition (7)
19 Firearm (5)
20 Antonio ___, Italian
composer (7)
21 Coloured transparent
gemstone (5)
22 Colour slightly (5)
DOWN
1 Volcanic island
republic in
Melanesia (7)
2 Traditions (7)
3 Pale purple colour (5)
5 Sounds (6)
6 Sign of the zodiac (6)
10 Beard found on a
bract of grass (3)
11 Brutal fellow (7)
12 Daydream (7)
14 Connected to a
computer network (6)
15 Study of plants (6)
18 Float (5)
I
I
M
L
N C
E
A
D
4

E S C A L A T O R
P A P I C U
E Q U I P T I E I N
R N L A C A D
P E A C E H I N G E
E A O R
T H A N K S N A I L
U L N I L T I
A B O D E A L L I N
L U E K A E
E D E L W E I S S
8 6 1 9 6 8
1 5 3 2 4 1 2 6
2 9 5 9 8 7
4 7 9 9 6 3 8
6 1 4 6 2 1 3
4 2 5 7 3
6 9 8 4 7 4 2
3 6 2 1 8 4 9
7 3 8 9 3 7
9 4 5 3 2 7 1 5
8 1 3 8 9 7
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
PENTHOUSE
Lifestyle | TV&Games
CITYA.M. 11 OCTOBER 2011 32
Sport
Fowlers emergence good for the game
BRITAINS hopes of gold medal suc-
cess at London 2012 have suffered a
double blow after major setbacks in
two of Team GBs strongest suits,
cycling and gymnastics.
Rebecca Romero, who won individ-
ual pursuit gold in Beijing three years
ago, yesterday ruled herself out of
next summers Games following a
series of injuries.
The 31-year-old former rower, the
only British woman to win Olympic
medals in two different sports, had
missed the Manchester World Cup
earlier this year.
Having suffered several setbacks
at crucial points, I believe Im no
longer on a pathway which will see
me fulfil my Olympic ambition to
win a second Olympic gold medal,
said Romero.
Im proud to have contributed to
the cycling teams great Olympic tri-
umph in Beijing and I thank all the
amazing people within British
Cycling who were central to my suc-
cess. I wish my current team-mates
every success in London next year.
Double world champion Romero
would not have been able to defend
her title in London anyway as the
mens and womens individual pur-
suits were scrapped in a shake-up of
Olympic track cycling.
She would have been in contention
for the team pursuit and road time
trial, however, although national
competition is particularly stiff in
both events, with Britain holding the
world titles.
Her absence was compounded by
the shock failure of Britains male
gymnasts to secure their place at
London 2012 at the gymnastics world
championships in Tokyo yesterday.
They were expected to comfortably
attain the top-eight finish needed for
Olympic qualification, as Britains
women did on Saturday, but ended a
hugely disappointing 10th.
Louis Smith made the final of the
pommel horse but the team suffered
on the high bars. Britains next
chance to qualify is at the London
2012 test event at the O2 in January.
BY FRANK DALLERES
OLYMPICS
I
T WAS a weekend of maiden victo-
ries with two players, whose career
trajectories could not be more con-
trasting, enjoying landmark suc-
cesses.
I was delighted for Englishman Lee
Slattery, who clung on to secure the
Madrid Masters. Its sometimes easy
to forget there are guys out there bat-
tling for their livelihoods and cling-
ing to their tour status.
Slattery, 33, lost his card four years
ago and was in danger of doing so
again. With so much riding on victo-
ry it was understandable that he
stumbled across the line.
Hopefully victory in Spain, and the
accompanying 143,000 cheque, will
give him the confidence and peace of
mind to finish his season strongly.
While Slatterys victory may prove
to be his career highlight, I firmly
expect American Rickie Fowlers tri-
umph at the Korea Open to be the
first of many.
Big things have been expected of
Fowler since he turned pro in 2009
and all the signs so far suggest he has
the required temperament to match
his undoubted skill.
His dress sense might not be for the
traditionalists, but for me anyone
who adds a bit of flamboyance to the
game is a good thing, particularly if
the sport hopes to attract and capture
the imagination of new young fans.
TIGERS RETURN
It was interesting to see Fowler go toe-
to-toe for the majority of the tourna-
ment with Rory McIlroy and thats a
rivalry Id love to see develop.
Its been a while since the sport
was able to enjoy a rivalry along the
lines of Jack Nicklaus and Tom
Watson, who used to slug it out at the
Majors.
That such confrontations failed to
emerge over the last decade was
largely down to the dominance Tiger
Woods enjoyed for so long, but youve
only got to look at the recent great
tennis contest between Rafael Nadal
and Novak Djokovic to see what a
series of epic duels can do for the pop-
ularity of a sport.
I wouldnt quite put Fowler in
McIlroys class at present, but the
ingredients are there for some mouth-
watering clashes in the future.
Meanwhile, just when he must
have thought hed seen it all over the
last couple of turbulent years, a flying
hot dog interrupted Tigers comeback
from injury at the weekend.
Im sure he wouldnt have been
unduly bothered by that bizarre
episode and, more pertinently, hell
have taken encouragement from the
way he performed in California. A
30th-placed finish was probably as
good as he could have anticipated
and, with his swing looking in good
order, I expect him to be climbing the
rankings swiftly.
DOUBLE world champion Sebastian
Vettels standing in the pantheon of
Formula One greats can only be
judged once he has faced an intense
rivalry, according to British track icon
Damon Hill.
Red Bull star Vettel, 24, ensured his
place in motorsport history at
Sundays Japanese Grand Prix when
he became the youngest man ever to
win consecutive drivers titles.
The Germans landmark season
has seen him compared to Formula
Ones very best, including compatriot
and seven-time champion Michael
Schumacher.
But Hill, who beat Schumacher to
the 1996 title in an era dominated by
their fierce rivalry, believes the true
test of Vettels quality will only come
when he is subjected to a similarly
protracted duel.
In Formula One you do need some
sort of personal rivalry to find out
what is going on within each com-
petitor, said Hill.
It seems to be that any time there
is another driver and the question is
which one of these two is better?
that spurs them on to push them-
selves to greater heights.
Itll come because hes so young.
Hes obviously going to be driving for
a few years yet and there are going to
be much tougher times ahead.
Hill believes there is no shortage of
potential rivals already on the grid,
should they be furnished with a car
equal to the Red Bull that helped
Vettel wrap up the championship
with four races to spare.
Jenson Button, Lewis Hamilton and
Fernando Alonso are all former cham-
pions, while the latter two also have
experience of intense rivalries with
each other.
I wouldnt like to guess what
would happen if you put him up
against a Hamilton. It might fire
Hamilton up. He might need to get
some sort of rivalry going, Hill
added.
Button has shown hes better than
we ever thought he was. Alonso is the
sort of fiery character who you can
imagine it being interesting them
coming together.
Hill: Rivalry would test Vettels mettle
Results
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email sport@cityam.com
SPORT | IN BRIEF
Worthington ready to step down
FOOTBALL: Northern Ireland manager
Nigel Worthington will take charge of
his country for the final time this
evening against Italy. The former
Norwich boss took over from Lawrie
Sanchez in March 2007, but the side
have won just two of their last 23
games under his stewardship and have
missed out on qualification for
Euro2012.
FA reveal cost of World Cup bid
FOOTBALL: The Football Associations
failed World Cup 2018 bid was yester-
day revealed to have cost a staggering
21m 6m more than had been tout-
ed. The bid ultimately garnered the sup-
port of only two Fifa members as the
tournament was awarded to Russia.
Sports minister Hugh Robertson said: I
wish we had the knowledge to realise
that Fifa wanted something different
than what we were put on the table.
Cavendish Quick Step deal KO
CYCLING: World champion Mark
Cavendish has moved a step closer to
joining Team Sky after Bessel Kok, part
owner of the Quick Step team, denied
there was a deal in place for the Brit to
join them next season. Cavendish will
not ride for us, said Kok. There have
been discussions about his future, but
both parties mutually agreed not to sign
the contract. Cavendishs current HTC-
Highroad team is to be dissolved at the
end of the current season.
Whip bans for Fox and Hughes
HORSE RACING: Kieren Fox and
Richard Hughes were the first jockeys to
fall foul of new whip guidelines yester-
day. Fox was handed a 15-day ban at
Salisbury after hitting Orthodox Lad 11
times, while Hughes was given five days
after finishing third on Swift Blade, who
was adjudged to have been hit six times
inside the final furlong.
GOLF COMMENT
SAM TORRANCE
Romero blow
for Team GB
2012 chances
BY FRANK DALLERES
FORMULA ONE
Romero is a
world champion
and won gold at
the last Olympics
Picture: PA
ENGLAND scrum-half Ben Youngs
has defended under-fire team-mate
Manu Tuilagi by laughing off his infa-
mous leap from an Auckland ferry
boat as nothing more than a bit of
banter.
Samoan-born centre Tuilagi was
fined 3,000 and warned about his
future conduct by embattled
England manager Martin Johnson for
the incident which saw the 20-year-
old repirmanded by Auckland police
for jumping from a ferry into the har-
bour.
Youngs was among a clutch of
England players to have touched
down at Heathrow yesterday the
remainder of the squad will land
today and attempted to play down
the severity of Tuilagis (right)
offence, which represented the final
blot on Englands copy book follow-
ing a month of scandal
and disappointing
performances.
He said:
You know
perhaps that
is another
i n c i d e n t
where it is not
that big a deal,
but of course,
naturally, it is
going to come
out like that
because we are
in the public eye.
I feel sorry for
Manu, he is a 20-year-old kid, he just
jumped off [the ferry] for a bit of ban-
ter and swam 10 metres in it is hard
for me to comment about because I
was not there but the tournament
was done and dusted by then.
Johnson, meanwhile, must wait
until the RFU conclude their review
into Englands dismal World Cup
campaign which ended tamely at
the quarter-final stage against France
on Saturday to find out whether he
will be retained beyond December,
when his current contract expires.
The former World Cup winning
skipper has come under intense
scrutiny as a result of Englands
insipid displays, but he would appear
to have the complete support of his
players.
You ask any of the players that
were out there. Johnno is definitely
the man and, hopefully,
the RFU will keep him
on, added Youngs.
But several of his
former team-mates,
including Jeremy
Guscott, believe
Johnson should pay
the price for
Englands failure to
reach the last four.
Guscott said: If
this was a business
decision Martin
Johnson would be
unlikely to continue. As a
player he was all about
winning and in that
regard hes come up
short.
Tuilagi ferry
leap was just
a bit of banter,
claims Youngs
BY JAMES GOLDMAN
RUGBY UNION
WALES have received a fitness

boost ahead of the World Cup
semi-final against France, a match
that some within the camp are
billing as the biggest in the coun-
trys history.
Lock Luke Charteris and fly-half
Rhys Priestland were both forced
off with shoulder injuries during
Saturdays quarter-final win over
Ireland, but hopes are high the
pair will recover by the weekend.
It is pretty sore, but it should
be good to go, Charteris said yes-
terday of his knock, which limited
him to just 40 minutes against
the Irish.
Of Priestland, Wales skills
coach Neil Jenkins said: We are
waiting to see what happens the
next couple of days and hopefully
he will be fine.
Warren Gatlands youthful side
have already secured their best
performance at a World Cup since
the inaugural tournament in
1987, but could go one better on
Saturday by beating Englands
conquerors to reach the final.
Jenkins said: This is certainly
the biggest game I have been
involved in, and the same for
Welsh rugby history.
Duo boost
for Wales
semi clash
BY FRANK DALLERES
RUGBY UNION
Sport
34
MULIAINA OUT FOR ALL BLACKS
NEW ZEALAND backs Colin Slade and
Mils Muliaina have been ruled out of
the rest of the World Cup. The All
Blacks have reacted by calling up
Baths new recruit Stephen Donald.
Slade had become first choice fly-half
after the tournament hosts lost Dan
Carter but he suffered a groin tear in
Sundays 33-10 quarter-final victory
over Argentina. Muliaina, meanwhile,
fractured his shoulder and failed to re-
appear after half-time in what was his
100th and now last Test appear-
ance. They are very disappointed to be
leaving the group at this stage of the
tournament. Its a difficult situation,
said New Zealand coach Graham
Henry. Hosea Gear and Stephen
Donald joined the team yesterday.
ROLLAND TO REFEREE WALES
ALAIN ROLLAND will referee the open-
ing World Cup semi-final between
Wales and France in Auckland on
Saturday. Irishman Rolland, who
took charge of the World Cup final
when South Africa beat England in
Paris four years ago, will have Englands
Wayne Barnes and South African
Jonathan Kaplan as his assistants.
AUSSIES COUNT ON COOPER
AUSTRALIA coach Robbie Deans is
adamant that under-fire fly-half Quade
Cooper will have a decisive say in the
destination of the World Cup. The
Wallabies No10 was again some way
short of his best against South Africa
on Sunday, but Deans continues to have
faith in the Queensland Reds playmak-
er. Clearly he wouldnt have been
happy with his performance on Sunday
but everyone made mistakes, Deans
said. Some of our best made mistakes
but they collectively worked their way
through it. Quades a resilient character
and hell bounce back.
Charteris suffered a shoulder injury
against Ireland Picture: PA
ENGLAND wicketkeeper Craig
Kieswetter insists he is ready for
action despite arriving in India ahead
of the upcoming one-day series late
and sporting a badly bruised arm.
The South African-born opener was
hit by a straight-drive from his batting
partner Jos Buttler four days ago dur-
ing Somersets Champions League
Twenty20 semi-final defeat against
Mumbai Indians.
But the 23-year-old is set to take
part in Englands final warm-up
game today against a Hyderabad CA
XI ahead of the first contest of the
five-match series against the 50 over
world champions on Friday.
I feel fighting fit, he said. Im a
bit of a late arrival with Somerset in
the Champions League, but theres no
better preparation than being out in
the middle playing.
The tempo is a little bit different,
but theres no better method of
preparation than being out there in
the middle in a match environment.
Kieswetter, an explosive hitter, may
well have attracted the attention of
Indian Premier League (IPL) franchis-
es for the next round of auctions
early next year, but he insists he is in
no hurry to fit in an IPL stint between
club and country commitments.
At this stage of my career Id
rather be playing for Somerset, he
added. The IPL is a hell of a tourna-
ment to be playing in and playing
against some of the IPL teams, we got
a bit of a taste of what it is.
Its really addictive. Id love to be
part of it at some stage, but I havent
thought about it in the short term.
Kieswetter fighting fit after
being caught in friendly fire
BY JAMES GOLDMAN
CRICKET
THE BREAKDOWN | WORLD CUP BRIEFS

Youngs flew home
early with several of
his team-mates and
landed at
Heathrow yesterday
Picture: PA
SCOTLAND captain Darren Fletcher is
confident of being fit to face world
champions Spain tonight after recov-
ering from an ankle injury.
Fletcher missed Saturdays 1-0 win
in Liechtenstein, which offered Craig
Leveins men renewed hope of quali-
fying for Euro 2012.
Scotland go into the game needing
to at least match the result achieved
by the Czech Republic in Lithuania to
secure a play-off spot and Fletcher is
aware of the size of the task.
He said: We are under no illusions,
they are the best side we have faced
by a long way.
I watched them against the Czech
Republic the other day and they had
65-70 per cent of the ball. So we have
to go with a game plan.
REPUBLIC of Ireland striker Robbie
Keane has been ruled out of tonights
pivotal Euro 2012 qualifier against
Armenia at the Aviva Stadium.
Giovanni Trapattonis side need
just a point to guarantee a play-off
spot, but victory coupled with
Andorra securing an unlikely win
over Russia would see Ireland qualify
outright for their first major tourna-
ment since the 2002 World Cup.
But Ireland will have to face
Armenia without record goalscorer
Keane, who sustained an abductor
muscle injury in Fridays 2-0 win over
Andorra.
West Broms Simon Cox will
deputise for Keane, while Richard
Dunne returns from suspension.
Keane injury adds further
complications for Ireland
FOOTBALL
FOOTBALL
Man Uniteds latest signing: Club

spend 8m on snapping up land
IT IS not quite the glamour signing
that supporters crave, but
Manchester United have dipped into
their coffers and splashed the cash
on acquiring land around Old
Trafford.
The club have paid 8.2m for a
one-acre site directly opposite the sta-
dium, an estate of seven industrial
units and a 177,000 sq ft warehouse.
All were bought from investment
and development company SEGRO,
which is landlord to 110 businesses
in the nearby Trafford Park industri-
al estate.
Uniteds move raises the possibility
that they could consider redevelop-
ing their 76,000-seater home, which
is already the biggest capacity club
ground in Britain. However a club
spokesperson said there were no
immediate plans to use their newly-
acquired land.
The stadium is an iconic asset for
the club and we feel it is beneficial to
invest in the surrounding area, said
a spokesperson. If more land
becomes available we will assess
whether it suits our purposes.
United chief operating officer
Michael Bolingbroke added: We are
delighted to have completed these
purchases from SEGRO to further
consolidate our ownership of land
and buildings around the stadium.
United also addressed on-field
matters yesterday when they con-
firmed midfielder Tom Cleverley has
signed a new four-year contract.
Cleverley, 22, has completed his
graduation through the ranks this
season, following several loan spells,
and broken into Fabio Capellos
England squad.
Manager Sir Alex Ferguson hailed
the youngster as one of the bright-
est prospects in the English game,
adding: Tom has grabbed his chance
with both hands.
Cleverley, who spent last season on
loan at Wigan, injured ligaments in
his foot last month but is expected to
be back in contention for Saturdays
trip to Liverpool.
BY FRANK DALLERES
FOOTBALL
Fletcher acknowledges
size of task facing Scots
35
HILL: RIVALRY WOULD
TEST VETTEL METTLE
BRIT ICON SAYS JURY OUT ON
GERMANS GREATNESS: P33
Already qualified: Germany, Italy,
Holland, England and Spain will join the
co-hosts Ukraine and Poland.
Nearly there: France need a point
against closest rivals Bosnia in Paris,
while a win for Sweden over Holland
would see them qualify as best runners-
up. Greece need a point from their last
game to qualify ahead of Croatia.
Portugal and Denmark meet in
Copenhagen to decide who wins Group H.
Set for the play-offs: Turkey can pip
Belgium for second place in Group A,
while Serbia must win in Slovenia to fin-
ish above Estonia in Group C. Norway can
still finish ahead of Portugal or Denmark
as long as the Group H summit meeting
doesnt end in a draw.
EURO 2012 | THE PERMUTATIONS
EURO 2012 D-DAY +++ EURO 2012 D-DAY +++ EURO 2012 D-DAY +++ EURO 2012 D-DAY +++ EURO 2012 D-DAY
BLUE TUBE | Citys web video deal
MANCHESTER CITY have
stepped up their quest for
global domination by
becoming YouTubes first
Premier League content
partner. The move allows
City to manage advertising
around their online video
clips, which do not include
match action, and is part of
their plan to increase their
digital presence.
Picture: ACTION IMAGES
Spain 7 7 0 0 18 21
Scotland 7 3 2 2 1 11
Czech Rep 7 3 1 3 1 10
Lithuania 7 1 2 4 -6 5
Liechtenstein 8 1 1 6 -14 4
GROUP I
TEAM PLD W D L GD PTS
Russia 9 6 2 1 7 20
Rep Ireland 9 5 3 1 7 18
Armenia 9 5 2 2 13 17
Slovakia 9 4 2 3 -3 14
Macedonia 9 2 1 6 -6 7
Andorra 9 0 0 9 -18 0
GROUP B
TEAM PLD W D L GD PTS
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THE BREAKDOWN | WORLD CUP BRIEFS

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