Cityam 2011-10-25

Todays economic reality reinforces the need to have sound
valuation tools and to keep challenging assumptions.

Christopher Hennessy, Professor of Finance
Corporate Finance Programmes
Next programme: Valuation Starts: 11 January 2012 (one evening per week for 10 weeks)
Visit www.london.edu/cf/ | Email nance@london.edu | Call +44 (0)20 7000 7397 Leading Financial Thinking
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Leading Financial
Thinking
FTSE 100 5,548.06 +59.41 DOW 11,913.62 +104.83 NASDAQ 2,699.44 +61.98 /$ 1.60 unc / 1.15 unc /$ 1.39 unc
Berlusconi calls crisis meeting as Eurozone lurches towards deal
EMERGENCY talks got underway in
Italy yesterday as the countrys embat-
tled prime minister Silvio Berlusconi
belatedly decided to get to grips with
the nations weak financial position.
Nicolas Sarkozy and Angela Merkel
have told Italy that urgent action is
needed to improve its finances ahead
of a euro-saving summit tomorrow.
Berlusconi has previously promised
to impose a degree of austerity, only to
scrap plans or have coalition partners
prevent him from acting. Reforms to
Italys generous state pensions system
are top of the agenda.
Eurozone officials also talked yester-
day of haircuts of up to 60 per cent for
Greek bond holders to help the nation
to avoid a default, sending shares in
the countrys heavily-exposed banks
tumbling.
Leaders are planning on boosting
the Eurozones bailout fund to try and
shore up the faltering finances of Italy
and Spain, as well as Greece.
A plan to recapitalise banks, protect
Italy and Spain and to resolve the
Greek crisis was meant to be in place
by last Sundays summit but rows
over the best way to bulk up the
bailout fund prevented that.
The European Financial Stability
Facility is now likely to be leveraged
from its current 440bn to around 1
trillion, bolstering its spending power
without adding to the cost to govern-
ments. It is now thought that either
one or both of two German plans will
be used.
One method is to use the fund to
take the losses on the first 20 per cent
or so of Italian and Spanish govern-
ment bonds.
The second part is to create a special
purpose vehicle (SPV) with money
from the EFSF and private investors to
buy sovereign debt. MORE: P6-7
BY TIM WALLACE
EUROZONE
BUSINESS WITH PERSONALITY

Certified Distribution
29/08/11 till 02/10/11 is 98,447
More than 80 Tory MPs ignored Prime Minister David Camerons three-line whip over an EU referendum Picture: REUTERS
DAVID Cameron, the Prime
Minister, was left humiliated last
night by a massive backbench
rebellion, after around 80 Tory
MPs defied the government and
voted in favour of a referendum on
Britains membership of the
European Union.
Although the government
defeated the motion by 483 votes
to 111, almost half of Tory back-
bench MPs who are not on the pay-
roll defied the three-line whip and
voted for a referendum. Including
abstentions, the number of Tory
MPs who refused to back Cameron
was almost 100, according to some
estimates.
The number of rebels was nearly
double the 41 MPs who defied John
Major by voting against the third
reading of the Maastricht Treaty in
BY DAVID CROW
POLITICS
www.cityam.com FREE
1993, making it the largest Tory
backbench rebellion on record by
some distance. It was also the
biggest backbench rebellion since
the coalition came to power in May
2010.
MPs were voting on a motion
that would have put pressure on
the government to give the elec-
torate a referendum on whether
Britain should stay in the EU; leave
it entirely; or renegotiate the
terms of its membership.
The parliamentary vote was
prompted by an online petition,
signed by 100,000 people, demand-
ing a national vote on the UKs
place in the European Union.
Because the result was non-bind-
ing, the government would not
have had to hold a referendum
even if MPs had voted for one. But
Cameron turned it into a vote on
his leadership by imposing a three-
line whip.
Speaking shortly after the vote,
David Nuttall, the Tory MP who
tabled the motion, said that while
the government had won the vote
they have certainly not won the
war.
Douglas Carswell, the Tory MP
for Harwich, said: Finally people
in the Westminster bubble are
beginning to reflect the real con-
cern that people have out there
about our future in Europe.
Earlier in the day, Cameron and
George Osborne, the chancellor,
tried in vain to quell the size of the
rebellion by meeting and ringing
around wavering MPs. However, as
the day progressed, it became clear
that the Prime Ministers decision
to impose a three-line whip had
backfired by stoking disquiet on
the back benches.
Adam Holloway, the parliamen-
Issue 1,496 Tuesday 25 October 2011
tary private secretary to Europe
minister David Lidington, effective-
ly resigned by joining the rebel-
lion. He was the most high profile
in a clutch of aides who sacrificed
their jobs to defy the government.
Last night, a Downing Street
spokesman said: The House of
Commons has clearly voted against
this motion.
We understand that many peo-
ple who voted for it felt very
strongly -- and we respect that.
However, the government has to
do what is in the national interest.
The easy thing to do would have
been for us to have avoided
expressing a view. It was important
to take a strong lead because
Britains best interests are served
by being in the EU.
The PM has made clear that he
shares the yearning for fundamen-
tal reform of the EU and is deter-
mined to achieve that.
Cameron told critics that the
worsening crisis in the Eurozone
was not a valid reason for the UK to
sever ties with Europe. When your
neighbours house is on fire, your
first impulse should be to help
them to put out the flames, not
least to stop the flames reaching
your own house, he told parlia-
ment.
ALLISTER HEATH: P2
MORE: P8, THE FORUM: P24
DEFIANCE
OWNER OF
THOMAS
THE TANK
ENGINE
SOLD FOR
425m
P18
News
2 CITYA.M. 25 OCTOBER 2011
City hits out
at Tobin tax
ELEVEN of the Citys main financial
groups have urged chancellor George
Osborne to fight any proposed finan-
cial transactions tax, in a letter sent to
the Treasury yesterday.
The City collective which includes
the British Bankers Association and
Investment Management Association
argued that a tax would hammer the
economy and affect all of the public,
not just financial services.
The charge would result in
increased mortgage costs and reduced
pensions for the public as the cost of
managing risk and investing increases
for the financial sector, the letter said.
The tax, also known as a Tobin tax,
has been proposed by the European
Commission.
Conservative MEP Kay Swinburne
warned recently that the UK could
lose its veto over an EU-wide imple-
mentation if it was snuck through as a
VAT measure. Yet law firm Clifford
Chance last week dismissed the claim,
insisting that Brussels cannot pass the
tax through a back door route.
The lawyers also said that the chain
of trades needed to purchase securities
means that the proposed 0.1 per cent
tax would, in effect, be more like a one
per cent tax. The Vatican yesterday
endorsed the tax, a move that pro-tax
campaigners said increased pressure
on the Treasury to accept the measure.
BY JULIAN HARRIS
TAXATION
David Cameron must listen to his MPs

IF you imagine that yesterdays mass
rebellion by Eurosceptic Tory MPs is
only of interest to anoraks, think
again. It demonstrates that there are
now three parties in the coalition: the
anti-Cameron Tory rebels who will be
voting against him at every opportuni-
ty; the centrist Cameroon Tories,
many of whom actually agree with
the rebels but are pro-leadership out
of self-interest; and the Liberal
Democrats. This will have a profound
impact on British politics and hence
on the prospects for economic and
public service reform, as well of course
as on Britains relationship with the
EU. Yesterdays events are another rea-
son in addition to the Eurozone cri-
sis, the dramatic slowdown in the UK
economy, increasing unemployment
and elevated inflation to think that
the chances of the coalition surviving
for the whole five-year term are not as
great as most people especially in
the financial markets believe.
Several motives are fuelling the
rebels. Many disagree with the govern-
ment on ideological grounds; not all
politicians are unprincipled. Many
MPs are genuinely angry that nobody
under the age of 54 has ever been
asked their opinion on the UKs rela-
tionship with the EU, even though it
now accounts for such a large propor-
tion of the laws that affect peoples
daily lives and the competitiveness of
the British economy. I have attended
private events where all the MPs pres-
ent including members of the 2010
intake openly disagreed with coali-
tion policy on tax, regulation, Europe
and much else besides, preferring
instead far more radical action.
Others resent what they claim to be
the snooty, elitist attitude of those
around the Prime Minister; they feel
that Camerons inner circle dislikes
most Tory MPs and activists and are
happy to reciprocate. Some of this is
down to class war. Many others blame
Cameron for losing what ought to
have been an unlosable general elec-
tion, accusing him of conducting a
poor campaign, forcing the Tories into
coalition with the Lib Dems. There is
even a widespread suspicion that
Cameron prefers Lib Dems to Tories
and would ideally like to merge the
two parties. This strand of opinion is
also angry at the composition of the
cabinet, which is seen as far too cen-
trist, especially after the resignation of
the Thatcherite Liam Fox.
The list of issues goes on and on.
The boundary changes, which mean
that parliamentary seats are being
redrawn and reduced in number, have
also angered many MPs; those being
forced to find new seats are well aware
that they have to listen to the
Eurosceptic Tory grass roots who will
be determining their fate. Last but not
least, many Tory MPs believe that the
chances of them being promoted to
the government are low: partly
because the Lib Dems hold so many
positions but (in the case of some
male MPs) also because they believe
that Cameron is on a drive to promote
more women to the cabinet, thus cur-
tailing their own prospects.
The Prime Ministers response will
be to punish and freeze out the dissi-
dents. That is how he has operated in
the past. But while there had already
been smaller revolts, yesterdays will
open the floodgates. What will hap-
pen if the economy flatlines for the
next couple of quarters, or even
longer? What will happen if Labours
poll lead grows? Panic will set in, and
rebellions will become a way of life for
the Tory party. Cameron needs to
wake up and change his ways.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
GROWTH is weak and the UKs econo-
my may be contracting in this quarter,
the monetary policy committees
Martin Weale said yesterday.
The underlying rate of growth is
weak, I wouldnt be terribly surprised
if we saw growth contract in the
fourth quarter, Weale told Channel 4
News. The risk of recession is higher
than it was a few months ago.
Weale, who voted for higher interest
rates as recently as July, blamed his
rapidly changing assessment of the
economys fortunes on the Eurozone
crisis: I think the problems of the
euro area and the knock on conse-
quences for our banks, for business
confidence, for the way consumers
feel about things are likely to prove
important, he said.
Weale offered little hope for the
near future: I find it difficult to fore-
cast how the Eurozone crisis will be
resolved. Even a clear resolution would
not solve all the underlying problems.
BY TIMWALLACE
UK ECONOMY
Economy may be shrinking

The Bank of Englands Martin Weale said the economy could be going backwards
NEWS | IN BRIEF
Gaddafi burial in secret location
The body of the ousted Libyan leader
Muammar Gaddafi will be buried today
in a secret desert grave, a National
Transitional Council official said last
night. He will be buried tomorrow in a
simple burial with sheikhs attending the
burial. It will be an unknown location in
the open desert," the official said. Rebels
had put Gaddafi's body in a cold storage
container in Misrata alongside his son
Mutassim and his army chief after they
were killed in Sirte on Thursday.
Morgan Stanley to sell Saxon
Morgan Stanley plans to sell its mort-
gage-servicing business to Ocwen
Financial Corp for $59.3m (37m), clos-
ing out a money-losing strategy that
stemmed from the subprime housing
bubble. The deal, announced yesterday,
signals Ocwen's strategy of expanding
by buying troubled servicing assets on
the cheap from big banks that have
stepped back from the US mortgage
business in the aftermath of the finan-
cial crisis. Morgan Stanley bought Saxon
in August 2006 for $706m as part of
the bank's dive into subprime mort-
gages.
EDITORS LETTER
ALLISTER HEATH
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UK chancellor George
Osborne was urged to
fight against a Europe-
wide Tobin tax, in a
letter from City firms
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
DEFENCE ATTACKS ONE-SIDED PROBE
IN F1 BRIBERY TRIAL
The trial of a German banker alleged
to have accepted $44m in bribes from
Bernie Ecclestone, the Formula One
chief, and a trust linked to his former
wife began in Munich yesterday with
the defendants lawyer accusing
media and prosecutors of hounding
his client. Gerhard Gribkowsky, the
former chief risk officer of BayernLB is
charged with accepting corrupt pay-
ments, breach of trust, and tax evasion
over his role in the sale in 2005 of the
banks stake in the Formula One rac-
ing series.
GROUPS FACE BEING FORCED TO SHOW
PROJECT PAYMENTS TO GOVERNMENTS
European countries will have to reveal
how much they pay governments in
individual oil, gas, mining and logging
projects under Brussels proposals that
go further than expected in strength-
ening transparency rules.
FATAL FLAWS IN UK-SWISS TAX DEAL
ATTACKED
Campaigners are stepping up their
attack on a newly signed tax deal
struck with Switzerland, which they
say is subject to a series of fatal flaws
that will give evaders a cost-free means
of maintaining their anonymity. The
Tax Justice Network, said it had identi-
fied 10 loopholes that undermined
any prospect that the deal legitimising
undeclared accounts would raise the
4bn to 7bn suggested by Revenue &
Customs.
EMPLOYERS ARE EXPLOITING TEMPS,
CLAIM UNIONS
Unions claim some agency workers
may end up worse off under new
European regulations designed to
improve their rights because big
employers, including Tesco and
Carlsberg, are exploiting loopholes in
the legislation. The rules came into
effect at the beginning of this month.
BEREZOVSKY WITNESS REFUSES TO
TESTIFY
A billionare who had been due to give
evidence for Boris Berezovsky in his
$6bn (3.75bn) claim against Roman
Abramovich this week has unexpect-
edly refused to testify. Michael
Chernoy, an Uzbek-born businessman
was due to appear as a witness in sup-
port of Berezovskys case against the
Abramovich which arose from a dis-
pute over oil shares.
CLEARING HOUSE COLLAPSE WOULD
CREATE MAYHEM
The failure of a clearing house could
trigger mayhem in the financial mar-
kets, a leading Bank of England policy-
maker warned yesterday. Paul Tucker,
a deputy governor of the Bank, said
that the institutions needed to be gov-
erned by a regime that ensured that
taxpayers would not not be lumbered
with losses if one went bust.
WILLIAM HILL SACKS SEVEN OF ITS
MANAGERS AFTER TEL AVIV PLOT
William Hill has sacked seven senior
managers and several junior staff at
its online betting joint-venture after
discovering an alleged plan to set up a
rival business. Ralph Topping, chief
executive, has spent the past four days
restoring order at the Tel Aviv office of
William Hill Online, the venture 79
per cent-owned by the UK bookmaker
and 21per cent by Playtech.
AMEC READY TO MOVE BACK INTO
LIBYA, SAYS CHIEF SAMIR BRIKHO
Amec, the British engineering compa-
ny, has declared that it intends to start
work again in Libya as soon as possi-
ble. Samir Brikho, the chief executive,
said: We are very involved now in dis-
cussions with the Libyan government.
We evacuated 50 ex-pats in the first
weeks ... and we are now ready to
move them back.
KICKBACK PROBE AT ALCOA HEATS UP
Two key figures in a bribery investiga-
tion of aluminum maker Alcoas
activities in Bahrain have been arrest-
ed abroad, three years after law-
enforcement officials began looking
at millions of dollars allegedly paid to
gain aluminum contracts. The
arrests, one in the UK and one in
Australia, suggest that an interna-
tional investigation tied to the com-
pany is picking up steam.
TURKEY'S QUAKE VICTIMS STRUGGLE
IN AFTERMATH
The death toll from a powerful earth-
quake in eastern Turkey rose into the
hundreds yesterday, as rescue teams
worked a second night to extract sur-
vivors, and residents fearful of after-
shocks fought for tents to shelter
their families. As of late Monday, 279
people had been confirmed dead and
1,300 injured.
WHAT THE OTHER PAPERS SAY THIS MORNING
THE CHIEF executive of embattled
security giant G4S met key investors
in Copenhagen yesterday to try to
persuade them to back his controver-
sial 5.2bn takeover of rival ISS.
Nick Buckles made the swift visit
to Denmark after the hostile reac-
tion that greeted the deal last week.
G4S has a series of Scandinavian
shareholders remaining from the
merger of Securicor and the security
business of Denmarks Group 4 Falck
in February 2007.
Last night Denmarks Jyllands-
Posten newspaper reported that Kim
Korsgaard Nielsen, a Nordic equities
portfolio manager at Carnegie Asset
Management, has concerns about
the ISS takeover.
London hedge fund Parvus, the
fifth-largest shareholder in G4S, has
said the deal does not make sense
strategically, operationally or finan-
cially and proxy group Institutional
Shareholder Services came out
against it at the weekend.
Yesterday G4S shares were almost
flat, closing up 0.84 per cent at
244.34p. The shares are down by
around 13 per cent on the level
before the takeover was announced.
If the takeover goes ahead it will
involve a 2bn rights issue and G4S
assuming ISS debt of 3.67bn.
ACCOUNTING technicalities have dis-
guised the true extent of the wipeout
for Wall Streets investment banks this
quarter, according to data compiled by
Financial News.
A run of US bank results for the
third quarter of this year exceeded
analysts expectations last week, but a
closer look at the numbers shows that
their investment banking businesses
have been hit hard by the global eco-
nomic slowdown.
Stripping out the effect of a debt val-
uation adjustment (DVA) -- which is a
regular feature of results but was par-
ticularly acute this year -- pushes the
investment banking division of Bank
of America Merrill Lynch (BAML) into
the red and puts Morgan Stanleys
institutional securities business only
close to breaking even, rather than
making a considerable gain.
For BAML, it flips the pre-tax profit
of $730m into a $970m loss. The equiv-
alent for Morgan Stanley sees the divi-
sions pre-tax earnings number go
from $3.34bn to $23m.
The effect is similarly dramatic at
rival banks. Goldman Sachs $73m loss
deepens to $1.18bn, JP Morgans invest-
ment bank sees its $2.52bn in pre-tax
profit cut down to $62m and the
equivalent figure for Citis securities
and banking division plunges from
$2.97bn to $1.08bn.
The DVA accounting change affects
results every year and has resulted in
gains as well as losses, but it makes
this quarters numbers particularly
difficult to compare with others.
It is meant to reflect the changing
value of banks debt: when they are
seen as riskier, the market value of
their bonds drops. After a DVA, that
appears as a reduction on the liabili-
ties side of the balance sheet.
The effect is that a deterioration in
banks prospects causes them to book
a larger profit than they otherwise
would.
British banks, which report results
in the next few weeks, do not have the
same ability to apply the DVA account-
ing gains to their earnings numbers.
However, some have in the past
attempted to use accounting vagaries
to alter headline numbers: Barclays
did so using several billion in assets
that it converted into a loan to an enti-
ty called Protium. It was then forced to
reverse the trick due to capital rules.
Accounting
tweak hides
bank wipeout
JAMES Murdoch, the presumed heir
to the News Corp media empire, felt
the wrath of the firms shareholders
yesterday, with nearly 35 per cent of
its investors voting against his re-
election to the board.
James, the youngest son of News
Corp chairman Rupert Murdoch,
garnered only a 65 per cent approval
vote.
James was formally recalled to par-
liament yesterday to clarify discrep-
ancies in his evidence regarding the
phone hacking scandal at the firm.
Rupert Murdoch was re-elected
with a nearly 85 per cent approval.
The percentage of against votes cast
for Murdoch is even higher after
accounting for the fact that the
Murdoch family controls 40 per cent
of News Corps voting shares.
Shareholders rage
against Murdochs
G4S head Nick Buckles flies out
to convince investors of ISS deal
BY JULIET SAMUEL
BANKING
M&A
James Gormans
Morgan Stanley
would have posted
a much lower
profit without the
accounting gain.
Picture: REUTERS
BY HARRY BANKS
MEDIA
News
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Capital thinking #9
Always have a stop in mind
when taking a position.
Trading is about discipline. If we want to achieve
most things in life, we need to have a plan. Trading
the nancial markets is no different.
THE THREAT of challenges under
human rights legislation means any
eviction of protesters outside St Pauls
Cathedral may not take place until
the New Year, City A.M. understands.
Yesterday the City of London
Corporation met lawyers and officers
believe it could take several months
to win a legal battle against Occupy
LSX because of the time needed to
prepare a writ capable of overcoming
challenges under the Human Rights
Act. Protesters could also seek leave to
appeal any ruling.
The corporation, which declined to
comment, is taking into considera-
tion the failed attempts to remove
Brian Haw from Parliament Square
since 2001. Part of the camp remains
despite Haws death earlier this year.
St Pauls remained closed yesterday.
Prayers are being said each morning
and evening and the Dean and
Chapter are reviewing the situation
several times a day, a spokesman said.
Activists from Occupy LSX and UK
Uncut marched on HM Revenue &
Customs yesterday to demand the res-
ignation of Dave Hartnett, Britains
top tax man.
The new camp, in Finsbury Square,
continues to grow with around 80
tents pitched there last night.
Human rights laws could let
activists cling on until 2012
BY PETER EDWARDS
POLITICS
News
Big tent approach: Occupy LSX is working with UK Uncut Pic: Laura Lean / CITY A.M.
THE VATICAN made a series of radical
demands for global financial control
yesterday, attacking economic liberal-
ism that spurns rules and controls.
The Catholic authority condemned
what it called the idolatry of the mar-
ket as well as a neo-liberal thinking
that it said looked exclusively at tech-
nical solutions to economic problems.
And it called for the establishment
of a supranational authority with
worldwide scope to impose economic
policies. One can see an emerging
requirement for a body that will carry
out the functions of a kind of central
world bank that regulates the flow
and system of monetary exchanges,
the Vatican said, in an 18-page docu-
ment.
Cardinal Peter Turkson preached:
The people on Wall Street need to sit
down and go through a process of dis-
cernment and see whether their role
managing the finances of the world is
actually serving the interests of
humanity and the common good.
Vatican slams economic liberals
and calls for global central bank
POLITICS
US STOCKS rallied yesterday as

investors were roused by big-money
takeover talks and record results
from the worlds largest heavy
machinery manufacturer.
The S&P 500 rose 1.3 per cent to
1,254.19, dragged up by acquisition
targets. It has now gained almost 11
per cent in October after five consecu-
tive monthly falls.
Health insurer Cignas decision to
buy HealthSpring for $3.8bn
(2.38bn), in a bid to jump-start its
Medicare business, sent the latter rock-
eting 34 per cent.
Oracle said it plans to buy RightNow
for about $1.5bn, sending the online
customer service companys stock up
19 per cent and sparking speculation
of bids for other cloud computing
firms. Smucker is set to buy some Sara
Lee coffee assets for around $350m.
Meanwhile, Caterpillar reported a
44 per cent increase in quarterly earn-
ings and record revenue after seeing
stronger than expected demand.
It posted third-quarter profits of
$1.14bn, compared to $792m a year
earlier. Sales rose 41 per cent to a
record $15.7bn. The company now
expects annual revenue of $58bn,
including its recent acquisition of
Bucyrus.
Amgen also reported better-than-
expected third quarter net profit of
$454m, helped by strong sales of its
products to boost white blood cells,
and the company raised its full-year
earnings forecast. Its shares rose 0.61
per cent.
And money manager Invesco said
third-quarter earnings rose eight per
cent to $166.9m despite tough mar-
kets, as customers added money to
fixed income and balanced funds.
One of the only dark spots in the
slew of US results was Texas
Instruments, which beat some fore-
casts but missed others with earnings
of $601m for the quarter, compared
with $859m a year ago.
US stocks in
results and
deals boost
BY STEVE DINNEEN
US MARKETS
EUROPEAN banks could be vastly

under-estimating the losses they will
have to take on the sale of billions in
non-core assets, City A.M. has learned.
In addition to being forced to take
write-downs on their sovereign debt,
lenders could be hit by worse-than-
expected sale prices for many of the
assets they are offloading in order to
bring their capital ratios into line with
regulations.
According to industry insiders, there
are seven packaged portfolios predomi-
nantly of real estate assets on sale from
major Spanish and Italian banks with a
face value of 750m-1.5bn.
But according to a source who has
examined the portfolios, the owners
are likely to receive less than they want
and will get in the region of 300-
400m, a 60-73 per cent write-down
or else they will have to sit on the assets
in the hope that values will rise.
Waiting would force banks to find
other ways to meet any recapitalisa-
tion requirement from Brussels in
order to avoid partial nationalisation.
The ultimate reality is that its hard
to see who will buy or finance this
stuff, said the source who has looked
at the assets.
The estimate suggests that the latest
round of bank stress tests by European
regulators were right to factor in huge
discounts on property values.
At the time, they were criticised for
being too harsh on private assets and
not harsh enough on sovereign debt
but banks could instead be facing a
double-whammy of write-downs.
In response to market panics, many
European banks have announced
plans to raise their capital by stepping
up their sell-off of non-core portfolios.
Ian Borman, a partner at law firm SJ
Berwin who has worked on non-core
deals, said: Theres a big difference
depending on where the property is. It
wouldnt surprise me if non-prime
assets in some jurisdictions are seeing
very low valuations.
UK banks are likely to be less affected
than their Spanish and Italian rivals.
Major banks
face non-core
loss hangover
SHARES in Greeces major lenders
plunged by more than a fifth yesterday
amid growing talk that Athens could
impose a 60 per cent haircut on hold-
ers of its debt.
Attica Bank lost 24.9 per cent, EFG
Eurobank lost 20.3 per cent and Alpha
Bank, which is set to merge with EFG,
lost 19.4 per cent.
A large haircut would create huge
losses for the banks, which are forced
to hold Greek government bonds by
liquidity regulations.
Alpha and EFG Eurobank also failed
to clear their merger with sharehold-
ers yesterday after not enough people
showed up to the meeting a fairly fre-
quent occurrence in Greek finance.
They set a date for another meeting
next month.
The ECB is reportedly coming
around to the idea of increasing hair-
cuts on Greek debt beyond the 21 per
cent agreed with private debt-holders
in July.
But the Institute of International
Finance (IIF), a regional bank lobbying
body, yesterday declared that going too
far would be tantamount to a
default or credit event, something
the ECB had been anxious to avoid in
the summer.
In order to avoid a technical default,
Greece has to ensure that its creditors
agree to any haircut on the bonds they
own.
Greek lenders
plunge after
haircut talk
BY JULIET SAMUEL
BANKING
BANKING
News
ANALYSIS l GDP growth forcasts
%
Eurozone Germany France Italy Spain UK Greece
2011
2012
4
3
2
1
0
-1
-2
-3
-4
-5
-6
EUROZONE CRISIS IN NUMBERS: LOW GROWTH AND HIGH DEBTS
ANALYSIS l Spreads on French and Italian bond yields over German bunds
Basis
points
French yields
2007 2008 2009 2010 2011
500
400
300
200
100
-100
0
Italian yields
ANALYSIS l Eurozone industrial production vs. manufacturing PMI
2003
Source: Thomson Reuters Datastream
2004 2005 2006 2007 2008 2009 2010 2011
10 60
55
50
45
40
35
30
5
0
-10
-5
-15
-20
Industrial production
% change on previous year
Manufacturing PMI
(right scale)
HOPE that Eurozone leaders would
successfully put together a rescue plan
pushed global stocks to a seven week
high yesterday.
Leaders failed to put together a plan
to recapitalise banks, build a firewall
around at-risk sovereigns and resolve
the Greek crisis by Sundays summit,
but the governments appear to be
inching their way towards agreements
ahead of tomorrows summit.
The FTSEurofirst
300 index of
l e a d i n g
European
shares was
up 1.1 per
cent at the
close of
play, reach-
ing 988.99
points, after
r a l l y i n g
strong-
Chance of euro deal lifts markets
BY TIM WALLACE
EUROZONE
News
ly on Friday, ahead of the first leg of
the politicians meet on Sunday.
Volumes were low, however, at 72
per cent of the 90-day average, as
some, including many long-only
funds, wait for clarity on the deal
before increasing their underweight
or neutral asset equity weighting,
traders said.
Christopher Potts of Cheuvreux,said
equities were moving from a tactical
to a strategic buy, implying potential
for a gain of 10 per cent to 15 per cent
for major indexes over the next three
months.
Meanwhile, Bank of France gover-
nor Christian Noyer said yesterday
that the banks would need only 10bn
to raise their core capital ratio to the
nine per cent by the end of 2012
agreed by EU finance ministers at the
weekend. Noyer said this would not
require extra state funds.
Yet data coming from the Eurozone
indicated a recession may be on the
way. Octobers composite purchasing
managers index (PMI) came in at 47.2
a sharp fall from Septembers 49.1.
The index is now firmly below the no
change level of 50.
Analysts believe this now puts the
Eurozone on track for a one per cent
fall in GDP in the fourth quarter.
French service sector output
dropped sharply, its PMI falling from
51.5 to 46. Germanys manufacturing
index declined from 50.3 to 48.9.
The sub-50 level represents the first
contraction in German manufactur-
ing since July 2009.
A second successive and markedly
sharper overall contraction in manu-
facturing and services activity in
October heightens fears that the
Eurozone is in grave danger of sliding
back into recession, said IHS Global
Insights Howard Archer.
The surveys pile pressure on the
European Central Bank to cut interest
rates at its 3 November policy meet-
ing.
ANALYSIS l Budget deficits
of GDP 9
8
7
6
5
4
3
2
1
0
%
E
u
r
o
z
o
n
e
G
e
r
m
a
n
y
I
t
a
l
y
F
r
a
n
c
e
S
p
a
i
n
G
r
e
e
c
e
U
K
W
EAK weak, weak. That was
how Tony Blair characterised
John Majors leadership on
Europe in January 1997. The
pair were sparring over Majors wait
and see policy on the euro, which was
openly disobeyed by many Tory back-
benchers, who adopted the Reverend
Ian Paisleys refrain: Never, never,
never. But the Labour leader could
have been talking about the entire
1992-1997 Major administration,
which was marred by almost constant
rebellion over Europe.
Still, the biggest single rebellion
over Europe, suffered by Major in May
1993, saw just 41 MPs vote against the
whip. Camerons humiliation, which
saw around 80 Tory MPs rebel, was
much, much worse. Some parliamen-
tary aides, were effectively forced to
resign to join the dissenters. The chief
casualty was Adam Holloway, the par-
liamentary private secretary to David
Lidington the minister, as irony
would have it, for Europe.
Cameron loyalists point out that
this is just one vote, that the Prime
Minister still has an awful long way to
go before he is as hamstrung as Major
was. That might be so, but in some
ways the situation facing the Tory
leadership today is even more perilous
than the one faced by Major.
For a start, the Eurosceptics feel
betrayed. In Cameron and Hague, they
were told they had the most sympa-
thetic leadership team since Margaret
Thatcher left Number 10. Downing
Street is forever telling journalists that
Cameron and Steve Hilton, his closest
adviser, are furious at how EU rules are
hampering Britains recovery. Yet the
spin is not matched by action; instead,
the government preaches fiscal union
for the Eurozone.
The Eurosceptics are also embold-
ened. They were right about the euro
and polls show that public opinion is
increasingly on their side. The pro-
Brussels faction once led by Ken Clarke
has all but disappeared. That is why
Hagues speech attacking the rebel
motion was delivered in silence yester-
day. Most backbenchers who are sup-
porting the government are doing so
with a heavy heart, and with an eye on
their future career.
Cameron has always said that his
preferred modus operandi would be to
use any treaty changes to repatriate
powers back to the UK. Now it looks as
though he might have a chance to
make good on that commitment, after
Angela Merkel said treaty change was
necessary to punish profligate
Eurozone governments.
Cameron has to take on Nick Clegg
and the Liberals, and repatriate the
powers that matter most for economic
recovery. If he doesnt, this rebellion is
likely to get even louder. FORUM: P24
Cameron left
damaged by
Europe rebels
Focus on Europe rebellion
The Prime Minister must now prove he is serious
about repatriating powers, writes David Crow
The Tory leadership
often dismisses the
rebels as usual sus-
pects. But a raft of
new MPs, elected in
2010, defied the
whips yesterday,
thought in include
(clockwise from top
left) Priti Patel, Zac
Goldsmith, and David
Nuttall (who tabled
the amendment).
They were joined by
more seasoned
Eurosceptics such as
Bernard Jenkin
lEUROSCEPTIC REBELS AND THE TORIES: A HISTORY By David Crow
August 1961
Harold Macmillan faces just one Conservative
rebel, Anthony Fell, when the Commons
debates his decision to open negotiations with
Europe about Britains entry to the European
Economic Community
April 1972
Eighteen Tories
rebel against
Ted Heath by
supporting a
move to hold an
advisory refer-
endum on entry
to the EU.
Heath faces no
less than 88
separate rebel-
lions when
pushing
through his
European
Communities
Bill in 1971-1972.
May 2010
In the 18 months or so since Cameron came to
power, he has already suffered 22 rebellions on
Europe, accounting for some 39 per cent of all
dissenting votes against the whip in this parlia-
ment. Even before yesterdays vote, there were
several rebellions of between 20 and 30 MPs, the
largest being 37.
May 1993
Forty-one backbenchers defy the whip on the
third reading of the Maastricht Bill, setting a
record for the largest Tory backbench rebellion
over a whipped Europe vote. In general, John
Major suffers the most serious bouts of discon-
tent over Europe, a fact exacerbated by his small
majority of 21. There are a staggering 62 rebel-
lions over the Maastricht Bill, as well as 14 fur-
ther rebellions over Europe.
June 1985
Margaret Thatcher suffers her largest Europe
rebellion when 19 Tories vote against the whip
over the EC (Finance) Bill. In general, she gets
off relatively lightly. In all of her three terms, she
faced fewer rebellions than Ted Heath did in just
one. The passage of the Single European Market
Act, which represents a huge loss of sovereignty,
provokes just 11 rebellions, the largest of which
has 10 rebels.
Spreads may widen dependent on liquidity and market volatility
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GENERATION
Y DECLARES
ITS FINANCE
MANIFESTO
FOR FUTURE
THE FINANCIAL services industry should
be a part of society, not apart from it,
said the next generation of City leaders
as they set out their plans for righting
past wrongs at Whitehall.
Politicians and regulators including
Conservative MP Matthew Hancock and
Prudentials public affairs director Miles
Celic supported TheCityUK-backed group
as it launched its Next Generation Vision
report with extra encouragement from
Boris Johnson via video footage shot in
the London Mayors natural habitat at
London Fashion Week.
There has been a lack of trust in the
industry but we are looking forwards.
What sort of industry do we want to
inherit? said PwC manager Shujaat
Khan.
As an insurance auditor, Khan is partic-
ularly interested in increasing trans-
parency to stakeholders, but the group is
also keen for the City to benefit commu-
nities as well as clients, and to renew the
almost a quarter of a million pounds in
prize money since April.
So why sell? Even though there is
lots of potential for Tell Dad as a three-
year-old next year, Andrew wants to
make his racing organisation a commer-
cial enterprise, said a mole a perfectly
plausible account of the man who rose
from his start fitting doors in old peo-
ples homes to building the haulage
empire to a 500m turnover business.
my word is my bond ethos for the digi-
tal age.
This is an opportunity for younger
voices to be heard, added Clifford
Chance lawyer Alan Mak, another of the
21 Generation Y professionals in the
group that also includes Barclays head of
renewables Gareth Miller and Freshfields
associate Bim Afolami. So whats next?
Spreading the word, evangelised Mak.
This is the start of a new period of opti-
mism in the City, because the next gener-
ation have ambition and hope.
SELLING HIGH
TO NEWMARKET for another round of
bloodstock sales starting this morning
this time, an auction of 1,400 racehorses
currently in training.
Among the leading owners is Eddie
Stobart chief executive Andrew Tinkler,
who is selling 200 horses including his
best two-year-old Tell Dad, who has won
The young ones: the 21 authors of the Next Generation Vision report to shape the Citys future
result!
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The Capitalist
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
MT4
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NETFLIX shares plunged more than 26
per cent in after-hours trading last
night after the DVD and online video
streaming service said it lost more US
subscribers than expected in the third
quarter after imposing an unpopular
price hike this summer.
The group said it had lost more than
800,000 subscribers more than the
approximately 600,000 it had forecast
in September and also predicted
more cancellations in its video rental
service this year.
Nevertheless third quarter earnings
jumped more than 60 per cent to $1.16
a share, on a better-than-expected rev-
enue up 49 per cent to $822m.
In a letter to shareholders accompa-
nying the results, chief executive Reed
Hastings said: We are moving for-
ward as quickly as we can to repair our
reputation and return to growth.
The company also forecast a loss for
the first quarter of 2012 as it expands
into Europe.
Netflix had earlier announced
ambitious growth plans to bring its
movie streaming business to the UK in
early 2012. Customers will pay
through a subscription model,
although the group is yet to give
details of its pricing and platform
plans. Netflix closed up 1.54 per cent
yesterday but shed 26.7 per cent in ini-
tial after-hours trading.
WWW.SGMARKETMASTER.CO.UK
7
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November 5
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December 2011

Covered Warrants, Super10s and Turbos are leveraged products and suitable for sophisticated retail investors. The underlying assets may be volatile and
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Generale. Societe Generale is a French credit institution (bank) authorized by the Autorit de Contrle Prudentiel (the French Prudential Control Authority).
Societe Generale is subject to limited regulation by the Financial Services Authority in the UK. Details of the extent of our regulation by the Financial Services
Authority are available from us on request. Any reproduction, disclosure or dissemination of these materials is prohibited.

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in the loss of esult due may r make payments
than eater gr be could losses and gains both
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e or dissemination of these materials is pr oduction, disclosur epr equest. Any r
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etail investors. The underlying assets may be ated r re

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Authority). ol rro
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to . N.V V. Acceptance
etail investors. The underlying assets may be volatile and
BY KASMIRA JEFFORD AND STEVE DINNEEN
TECHNOLOGY
News
Netflix, co-founded by chief executive Reed Hastings (right), has rights to stream
Lionsgates Madmen
Push into online streaming in the UK
will not be the potion to cure giants ills
IT HAS been a year of two halves for
Netflix. It reached a share high of
almost $300 in July after a meteoric
rise. Last year it accounted for more
web traffic than any other site on the
internet (that it deals in bandwidth-
heavy streaming only makes this
marginally less impressive).
But it decision to hike the price of
movies hit sales and spooked
investors, with its value decreasing
60 per cent since then. This was exac-
erbated by the disastrous announce-
ment and subsequent cancelling
of a spin-off of its DVD-postage arm.
It hopes a push into Latin America
and Europe can turn around its for-
tunes though as last nights figures
underline, it has its work cut out. It
faces fierce competition with its UK
venture. It arrives late into the online
rental space, with LoveFilm, recently
acquired and integrated into
Amazon, already boasting more than
1.4m subscribers. Google has also
announced plans to stream movies
through YouTube and Apple offers a
pay-per-view service through iTunes.
Last year 36 per cent of homes
were pay-TV subscribers, with access
to comparably priced subscription
and pay-per-view models from BSkyB,
Virgin Media or BT. Sky Go alone has
1.6m unique users a month. Netflix is
understood to be in important talks
about bringing the service to games
consoles but it will take more than
that to topple the current hierarchy.
BOTTOMLINE
Analysis by Steve Dinneen
Netflix shares
hit by exodus
in subscribers
Yes. I have used similar
things in the past. Whether
I use this new one over the
previous ones like LoveFilm
depends mainly on
the cost.
PETER GODFREY |
I would not subscribe to
Netflix. As I work in the
City there isn't very much
time for me
to spend watch-
ing movies.
ALAN WALSH |
LoveFilm is a great user friendly website, I would not need to use
anything else. Other types I think will suffer trying to break through.
The only thing that would persuade people is the cost.
TOM DE LISLE | NEPTUNE
ANALYSIS l Netflix Inc
$
18Oct 19Oct 20Oct 21 Oct 24Oct
120.00
117.50
115.00
112.50
110.00
107.50
118.84
24 Oct
LLOYDS OF
LONDON
JRP UNDER-
WRITING
CITY VIEWS: WOULD YOU USE NETFLIX? By Phoebe Torrance
* These views are those of the individuals above and not necessarily those of their company.
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RUSSIAN gold and silver miner
Polymetal loosened the conditions on
its share swap plan yesterday to push
through its bid to raise more than
500m on the London Stock Exchange.
Polymetal, the worlds third-largest
silver producer and currently part-con-
trolled by tycoon Alexander Mamut
(pictured), said it would price its flota-
tion at between 910p and 1,035p per
share, issuing new shares to raise
between 450m and 518m as early as
next month.
But it said only 83 per cent of
investors in its Moscow-listed shares
and UK-listed global depositary
receipts had accepted its offer to swap
their stock for shares in a new, London
listed entity short of the 85 per cent
of acceptances needed to complete the
swap.
To give investors more time,
Polymetal has set a two-day extension
until 26 October for them to accept
the offer, but it also said it had aban-
doned the 85 per cent threshold.
Due to certain complexities of the
acceptance under the ISSF, some
Polymetal shareholders and GDR hold-
ers have not been able to accept the
ISSF prior to the expiration time, it
said in a statement.
The groups chief executive, Vitaly
Nesis, said he believed the deal offers
substantial benefits to existing share-
holders of Polymetal, providing signif-
icantly improved trading and liquidity
as well as strong growth prospects,
which we expect will provide substan-
tial value going forward.
The share swap will see Polymetal
delist from Moscow and issue new
shares in a Jersey-headquartered hold-
ing company. It hopes to be included
in the FTSE 100 index within months
of listing in London.
The miner listed about 25 per cent
of its shares in Russia and via London
GDRs in 2007 and aims to add another
25 per cent of free float in this IPO to
give it the 50 per cent required by
Londons listing rules.
Polymetal follows a series of other
Russian corporates in seeking a
London listing and FTSE inclusion,
despite the onerous governance guide-
lines, to access the
deeper capital
and notice of
global investors.
Earlier this
month, steel-
maker Evraz also
said it would to
move to a main
market listing to
access the more
liquid capi-
tal mar-
ket.
Polymetal to
raise 518m
in London IPO
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BY ALISON LOCK
CAPITAL MARKETS
News
SERGEI Chinkis is leading the HSBC
team advising Polymetal on its share
swap and IPO on Londons main mar-
ket. A veteran of emerging markets
mining deals, Chinkis worked for Bank
of Montreal, and joined BMO Nesbitt
Burns in 2004 as a director in its met-
als and mining division, prior to mov-
ing to HSBC.
Chinkis has advised on M&A and
fundraisings, including the $9bn
reverse takeover of Kazakh Gold by
Russias biggest gold miner Polyus
Gold this year. He was also part of the
team that planned Danish services
group ISSs aborted IPO last year,
pulled by its private equity owners.
In 2002 he helped Canadas
Franco-Nevada and Normandy Mining
merge with Newmont Mining to cre-
ate the worlds biggest gold company.
He holds an MBA from Simon Fraser
University and a degree in oil and gas
engineering from Moscow State
Academy of Oil and Gas.
ADVISER: HSBC
SERGEI CHINKIS
HSBC
THE FATE OF RUSSIAN IPOS IN LONDON THIS YEAR
FLOATS DEAL DATE OUTCOME
HMS Hydraulic Pump maker $360m Feb 2011 Listed at a cut price
Etalon Real estate developer $575m April 2011 Successfully listed, although at the bottom end of its range
Nomos Private bank $718m April 2011 Floated successfully in the biggest-ever IPO by a privately-held Russian bank
RusAgro Sugar and pork producer $330m April 2011 Successfully floated at the lower end of its range
Global Ports Infrastructure operator $534m June 2011 Floated but raised only about two thirds of the $750m originally targeted
PhosAgro Chemicals $538m July 2011 Priced deal at bottom of range but floated successfully
PULLED FLOATS DEAL DATE OUTCOME
Nordgold Gold miner $1bn Feb 2011 Pulled after investors demanded it cut its price range
Koks Coking coal miner $520m Feb 2011 Float pulled amid market volatility during Tunisia and Egypt unrest
Euroset Mobile phone retailer $1.25bn April 2011 Pulled the float at 11th hour, citing challenging and volatile market conditions
Russian Helicopters State defence firm $500m May 2011 Pulled IPO to give investors more time to reflect upon the true value of the firm
Domodedovo Moscowairport $1bn May 2011 Dropped plans to float in May Source: Dealogic
GEM Diamonds has sold the Letseng
Star, a 550ct white gem diamond
recovered from a mine in Lesotho, for
$16.5m (10.3m).
The Type-IIa D-colour diamond was
discovered in August.
The Letseng Star ranks as the 14th
largest white diamond on record and
is the fourth diamond of such histori-
cal significance to be recovered from
the mine.
Clifford Elphick, Gem Diamonds
chief executive, said the sale reflected
the firms increasing success.
PHILIP Falcones flagship portfolio
lost about 17 per cent last month as
LightSquared, one of the hedge fund
managers biggest investments, faced
regulatory hurdles that threaten its
business plan.
Investors with the billionaire stock
picker were told late last week that
Falcones Harbinger Capital Partners
Fund II had dropped 16.76 per cent in
September while the Harbinger
Capital Partners Special Situations
Fund lost 9.65 per cent, said two
investors who saw the numbers.
Falcone funds
begin to flag
Gem gets $16m
for its diamond
MINING
HEDGE FUNDS
JUST when it looked like things could

not get any worse for stricken camera-
maker Olympus, its shares were
rocked again by news the FBI will
probe its controversial advisory pay-
ments.
Its stock tumbled a further 11.5 per
cent in trading yesterday to hit
1,099 a 55 per cent fall in the space
of just two weeks.
Ex-chief executive Michael
Woodford, who was axed less than
two weeks ago, went public with his
concerns over what he says are inex-
plicably high advisory fees paid in
relation to the takeover of a British
firm.
The Serious Fraud Office (SFO) in
the UK is already understood to be
conducting its own preliminary
investigations into the scandal, which
has rocked one of Japans most recog-
nisable firms and shone a light on its
controversial management structure.
Payments amounting to $687m
were paid to offshore-based advisers
in the wake of Olympus $2.2bn
takeover of medical equipment-
maker Gyrus in 2008. The fee is the
largest on record.
Olympus acknowledges it made the
payment and denies any wrongdoing.
It has not explained why it agreed to
a fee that amounted to close to a
third of the value of the takeover
when such fees normally come to
about one per cent.
The firm denied Woodfords claim
that it switched auditors from KPMG
to Ernst & Young in 2009 because of a
disagreement on the accounting for
the acquisition.
A string of investment banks
including Goldman Sachs and JP
Morgan have suspended their ratings
on the firm in light of the allegations.
Crisis grows
as FBI probe
hits Olympus
VIRGIN Money will submit a second
round bid for nationalised bank
Northern Rock today, billionaire
investor Wilbur Ross, who is a major
shareholder of Virgin Money, has
said.
We are big investors in Virgin
Money, Richard Bransons company,
and we are backing Virgin in their bid
for Northern Rock, the chairman
and chief executive of WL Ross said
during a trip to Tokyo yesterday.
We are actually putting in the bids
tomorrow. Tomorrow European
time.
In July, Virgin Money first submit-
ted an expression of interest in
Northern Rock.
Ross also said he was interested in
boosting his investments in Japanese
private equities.
SMALL-CAP stock market Plus
Markets was told to kick out its chair-
man by its second-biggest sharehold-
er yesterday, in a revolt after years of
poor returns at the company.
Arab investor Amara Dhari, the
companys second-biggest sharehold-
er, told Plus to call a general meeting
to discuss replacing chairman Giles
Vardey with Pluss ex-boss Simon
Brickles, who also formerly ran the
AIM junior market.
Virgin Money will
bid for the Rock
Plus Markets
investor revolt
may oust chair
BY STEVE DINNEEN
TECHNOLOGY
Axed boss Michael Woodford made the allegations that have rocked the firm Pic: REUTERS
BY HARRY BANKS
FINANCIAL SERVICES
News
ANALYSIS l Olympus Corp

1,500
1,400
1,300
1,200
1,100
1,099
24 Oct
ONLINE banking specialist Parseq has
backed a takeover bid led by the com-
panys chief executive Rami Cassis.
The board said it supports the
33.8m offer, which is backed by Nova
Capital and HarbourVest Partners, for
the privately held firm.
Independent director Richard Last
said: As a private company with a
strong parent, Parseq will benefit
from greater access to funding which
will better enable the company to
maintain its leading position in the
mobile banking software arena and
to capitalise on opportunities on a
global basis.
DDD Group yesterday announced it
has signed a licensing agreement
with Sony to use its TriDef technology
in the new range of Vaio S-Series lap-
tops. The 3D graphics company says
the technology will automatically
convert 2D games into 3D when users
have the requisite hardware.
It says the partnership marks the
first time that 2D notebooks will
include 3D features, bringing 3D to
the PC mass market.
Chief executive Chris Yewdall said:
This marks our biggest PC license to
date and further highlights our
progress in delivering 3D solutions.
DDD announces
a Sony tie-up
Parseq board
backs takeover
TECHNOLOGY
TECHNOLOGY
FINANCIAL SERVICES
THOMAS the Tank Engine is set to trav-

el further into new markets after par-
ent company Hit Entertainment was
sold to US toy giant Mattel for $680m
(425m).
Private equity house Apax Partners
yesterday agreed to sell the firm to
Mattel, best known for its Barbie and
Fisher-Price brands. A deal, worth up
to $1.5bn, was first mooted a year ago.
Thomas the Tank Engine, created by
Rev W Awdry in 1945, is already sold in
80 nations from Israel to Peru.
Now Mattel wants to take Hits
other brands, such as Bob the Builder,
into developing markets such as
China, David Allmark, executive vice-
president for Fisher-Price, told City A.M.
He also left the door open to further
deals, saying the firm tends to get
information about people who want
to sell.
The deal, which does not include
Hits interest in the cable network sta-
tion Sprout, will be funded through
cash and debt.
Apax bought a majority stake in Hit,
alongside management in 2005, for
489m, which was then worth $890m.
It sold the Guinness Book of World
Records to Ripley Entertainment for
60m in 2008. Yesterday Apax declined
to say if it had made a profit on its
investment in Hit or to comment on
suggestions it had recorded a $200m
paper loss.
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Thomas on growth track
after Apaxs $680m sale
BY PETER EDWARDS
M&A
News
MORE NEWS
ONLINE
@
www.cityam.com
Full steam ahead: new owner Mattel hopes to grow its brands in the East Picture: REX
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JUST three weeks after listing as an
independent company, the maker of
Jim Beam bourbon whisky has been
tipped as a potential takeover tar-
get by rivals such as Diageo or
Frances Pernod-Ricard.
Beam listed as a pure-play
drinks firm on 4 October after
being spun out of Fortune
Brands, but is seen as an attrac-
tive buy as its rivals look for a
foothold in the lucrative
bourbon market.
Goldman Sachs said its
stock would attract an M&A
premium and gave it a 30 to
50 per cent likelihood of
being bought by a rival,
arguing that it would
attract a valuation of up to
$59 (37) per share in a bid
situation. That would value
Beam at $10.8bn, putting it
on a part with deals such as
SABMillers $12.4bn takeover
of brewer Fosters and Pernod Ricards
$17.8bn takeover of Allied Domecq in
2005.
We believe Beam has strategic
appeal in a consolidating spirits
industry while also lacking acquisi-
tion obstacles such as not being a
standalone company (Moet Hennessy)
or being family owned (Brown-
Forman, Remy Cointreau, Campari,
Bacardi), Goldman analysts said.
But Diageo, the worlds biggest
alcoholic drinks maker, and Pernod-
Ricard, with $14.2bn of debt, would
face hurdles to such an ambitious
deal. We will continue to look at
opportunities for acquisitions
where we see a chance to
strengthen our company, a
Diageo spokesperson said.
Beam, now the worlds fifth-
largest drinks producer, said it
expected to remain independent.
The new Beam is off to a great
start, and we see a bright and
prosperous future as a stand-
alone company, a Beam
spokesman said.
Beam tipped
for buyout by
a global rival
NATIONAL GRID said yesterday it has
sold its metering division to
Macquarie Bank, in a deal worth
275m.
Utility Metering Services, known as
Onstream, joins Macquaries portfolio
of UK assets, which also includes the
M6 toll road.
It was set up by National Grid in
2001 and covers more than 4m gas
meters across the UK, providing serv-
ices to all six major energy providers.
National Grid
sells Onstream
Bluu Brasserie on Moorgate is one of the locations Fullers is buying
BY ALISON LOCK
CONSUMER
ENERGY
THE HISTORIC Tate & Lyle sugar refin-

ery in east London may be forced to
close, as its American owners are hit
by new import tariffs imposed by the
European Commission.
ASR, which bought the 133-year old-
plant in Silvertown from Tate & Lyle
last year and licensed its brand name,
has so far had to pay an extra 85m in
tariffs.
The site employs 850 people, split
between Silvertown and its sister site
in Plaistow.
Tate & Lyle faces
closure of plant
CONSUMER
News
Fullers splashes out to
boost London portfolio
FULLER, Smith & Turner is paying
16m for five pubs as it moves to
boost its estate in time for the
Olympics next summer.
Fullers is buying The Wellington
at Waterloo, The Pavilion End and
Bluu in the City, The Hand & Flower
in Kensington Olympia and the Red
Lion Hotel in Wendover, Bucks
The seller is Marstons, which is
seeking cash to build new pubs in
areas such as retail parks.
Fullers managing director Simon
Emeny said: These acquisitions are
high turnover managed houses with
a similar trading style to our own
where we feel Fullers can add value.
They emphasise our continued focus
on London.
The brewer of London Pride
recently lost out on a bid to buy the
Capital Pub Company to rival Greene
King, which paid 70m for 34 booz-
ers around town.
The acquisition includes two of
the Citys popular watering holes
the Pavilion End on Watling Street
near Mansion House, and Bluu
Brasserie, located in a Grade II listed
building between Moorgate and
Bank stations.
The five acquisitions take the total
number of pubs in the Fullers estate
to 365.
CONSUMER
GULF Keystone Petroleum said yester-

day it expects to shortly increase its
oil reserves estimates at one of its
exploration fields in Kurdistan.
It told investors in a market update
that the Shaikan field project held
between five and 10 per cent more oil
than originally thought, having
examined new 3D data.
Previous estimates had put gross
volumes at the Shaikan field at
between 4.9bn to 10.8bn barrels.
The explorer also said that it
expects the results from the ongoing
drilling and testing operations at
Shaikan-4 and Shaikan-2, which will
be followed by the Shaikan-5 and 6
appraisal wells shortly, to provide
the basis for yet another upgrade of
the Shaikan oil-in-place numbers.
John Gerstenlauer, Gulf Keystones
chief operating officer, said: We
expect the results from the ongoing
drilling and testing operations to pro-
vide the basis for yet another upgrade
of the Shaikan oil-in-place numbers.
But the firms shares fell 2.4 per
cent yesterday.
TURKMENISTAN-FOCUSED oil firm
Dragon Oil said it was confident of
maintaining its 10 to 15 per cent tar-
get growth rate to 2015, putting it on
track to produce 100,000 barrels of oil
per day (bpd) in four years time.
The company said that following a
detailed review of its oil fields, it
expected to be able to maintain aver-
age production growth of 10 to 15 per
cent to 2015, having previously guid-
ed the same growth rate for the peri-
od to 2013.
The plateau production of 100,000
bpd is a milestone that we aim to
achieve in 2015 and maintain for a
minimum period of five years, chief
executive Abdul Jaleel Al Khalifa said
in a statement.
Dragon Oil also said that produc-
tion could exceed its new targets
should a project to inject water into
the wells to enhance oil output be
successful.
The firm expects production to
reach 70,000 bpd by the end of this
year, representing a growth rate of
over 25 per cent in 2011, and revers-
ing disappointments from 2010 when
it cut production growth guidance
after infrastructure bottlenecks.
Dragon Oil upbeat on its growth rates
until 2015 as production forges ahead
FTSE 250-listed Premier Oil yesterday
announced its first gas production
at the Gajah Baru field in Indonesia.
Premier achieved first gas after
receiving the ministerial consent to
complete commissioning at a rate of
up to 50bn British thermal units per
day (bbtud), it said in a statement
yesterday.
The firm also said its previously
announced gas swap documenta-
tion to deliver gas to domestic buy-
ers is being completed, as per
requests by the government of
Indonesia.
Premier has a 28.67 per cent equi-
ty stake in the Natuna Sea Block A in
the field, and operates its on behalf
of its three partners KUFPEC, Hess
and Petronas.
Premier produces its first
gas from Indonesia field
ENERGY
ENERGY
ESSAR Energys Vadinar refinery will

hit an increased capacity of 375,000
barrels per day (bpd) by the end of
March, the company said yesterday.
The energy company had shut the
refinery in western Gujarat state last
month for 35 days to raise capacity
by 25 per cent and upgrade it to
process more heavy and ultra heavy
crude oil.
The expansion should be mechan-
ically completed by year-end and
fully ramped up and stabilised by the
end of the March 2012, the company
said in a statement.
Essar is also on track to further
raise capacity to 405,000 bpd by
September 2012, it said.
The second expansion involves
converting the redundant Vizbreaker
Unit into a second crude distillation
unit. Indias refining capacity is
expected to rise 20 per cent to about
4.65m bpd.
Essar refinery upgrade a success
as Vadinar re-opens for business
ENERGY
CHARIOT Oil & Gas said yesterday a

share placing has left it with $139.6m
(87.6m) of cash reserves going into
2012, which it called a critical year in
the companys growth and develop-
ment as it shrugged off widening
half-year losses.
The AIM-listed firm said that a
weak pound had led to a foreign
exchange loss of $763,000 in the six
months to the end of August, con-
tributing to a pre-tax loss of $4.3m for
the period.
Chariots operational losses rose 70
per cent on the same time last year to
$4.1m, which the company said was
due to increased exploration costs
and administrative expenses.
The company completed two major
deals during the half-year, as well as
its April share placing to raise $140m.
Its farm-out deals with BP and
Petroleum Geo Services focused on its
exploration blocks in Namibia.
The company is now preparing for
increased exploration activities at its
blocks over the next few years.
During the first half of the year,
Chariot increased its output to 8.9bn
barrels of oil.
With three major partners on
board we feel we have strong endorse-
ment of our portfolio and Namibia's
potential to become an important
hydrocarbon province, said Chariot
chief executive Paul Welch.
Chariot said it was open to more
licence deals on its wells and that
our remit remains within Africa.
Chariot pins hopes on 2012
BY MARION DAKERS
ENERGY
Keystone on
target to top
oil estimates
BY JOHN DUNNE
ENERGY
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NEWS | IN BRIEF
FedEx expects record shipments
E-commerce will drive record holiday ship-
ments this year for FedEx Corp, the
worlds second-biggest package delivery
company said yesterday. FedEx expects to
deliver more than 260m packages global-
ly between Thanksgiving on 24 November
and Christmas, up 12 per cent from a year
earlier. FedEx said it will add about
20,000 seasonal workers to help handle
the volume surge. It expects to move
more than 17m packages on 12 December,
the projected busiest day in company his-
tory, more than double its average daily
deliveries. That would top last year's
record 15.6m shipments on 13 December.
Saab still in talks with Chinese
The owner of troubled Swedish carmaker
Saab is still talking to would-be Chinese
buyers, hours after scrapping a planned
cash lifeline and days after spurning their
total buyout bid. Saab owner Swedish
Automobile said late on Sunday it was
cancelling a planned 245m investment
deal signed in June, under which Zhejiang
Youngman Lotus Automobile and Pang Da
Automobile Trade would have taken a
majority stake in Saab, as they had failed
to confirm their commitments. The
Chinese companies came up with an alter-
native last week for a 100 per cent buyout
of the carmaker, which was granted pro-
tection from creditors in September and
hasn't made a vehicle since closing its pro-
duction line in April. Swedish Automobile
rejected that offer, but said yesterday con-
tact had not been broken off. The firms oil fields could be bigger than thought. Inset: COO John Gerstenlauer
ANALYSIS l Gulf Keystone Petroleum Ltd
p
140
138
136
134
132
134.25
24 Oct
THE BOARD of TNK-BP Holding, the
Russian energy venture half owned
by BP, yesterday voted against an ini-
tiative to join a minority shareholder
in a lawsuit against the British oil
major, a spokesman for BP in Moscow
said.
The board of directors voted
against joining the lawsuit at its
meeting, Vladimir Buyanov said,
confirming a report by a source close
to TNK-BP Holding.
A spokesman for TNK-BP declined
to comment further yesterday.
BP and the quartet of billionaires
representatives of the Alfa-Access-
Renova (AAR) consortium who own
the other half of Russias third-largest
oil producer clashed over BPs
attempts this year to secure an explo-
ration and share-swap deal with state-
controlled energy group Rosneft.
A minority shareholder in the list-
ed subsidiary of 50-50 joint venture
TNK-BP Ltd, TNK-BP Holding, is seek-
ing total damages of over $13bn in a
Russian court from BP and two nomi-
nees on the board of TNK-BP Holding,
Peter Charow and Richard Sloan.
The shareholder, Andrey
Prokhorov, needed more support
from other TNK-BP shareholders to
validate his claims in the lawsuit
against the directors.
According to Russian law, a
claimant must have at least a one per
cent stake in a company to be able to
file a lawsuit against directors.
Prokhorov has less than the
required amount of shares in TNK-BP,
and a BP lawyer has said that the
court will have to waive his claims to
the directors during its hearings on
10 November in a regional court of
Tuymen where TNK-BP is registered.
BPs shares fell 0.3 per cent yester-
day, lagging behind the market,
ahead of its third-quarter results due
out this morning. Profits are expect-
ed to be around 3.1bn, down eight
per cent on the previous quarter.
MOUCHEL, the struggling infrastruc-
ture group, has continued to offload
unwanted assets by selling its pipeline
design business to Mott MacDonald
for up to 3.4m.
Mott MacDonald, a management,
engineering and development consul-
tancy, will pay an initial 2.55m for
Mouchel Energy, a new business set
up for the disposal, which has rev-
enues of 4.7m. Working capital
adjustments could increase the value
of the deal by up to a further 850,000.
It will make a relatively small dent
in Mouchel groups debt pile, howev-
er, which stands at around 87m.
New chief executive Grant Rumbles
has said the sales are part of a strategy
to focus on Mouchels core markets,
agreed late last year.
Last week Mouchel sold its rail busi-
ness to Australias Sinclair Knight
Merz and City A.M. understands more
sales could be agreed over the coming
months.
Mouchel has been hit by govern-
ment spending cuts during a turbu-
lent year.
David Sugden, its interim chair-
man, quit last week after barely four
days in the job when the groups main
lenders indicated he would not get the
post on a permanent basis.
Ex-chief executive Richard Cuthbert
resigned earlier this month after
Mouchel said a statistical error and
mounting risks to contracts would cut
about 60 per cent from this years
profits.
Pipeline design business latest to go as
ailing Mouchel continues asset firesale
MCBRIDE, the UKs biggest maker of
own-brand cleaning and personal
hygiene products, has said the cost of
its raw materials has come down, lead-
ing to hopes that price pressures could
be easing.
McBride said yesterday its policy to
use price rises to recover input costs
was coming to an end, as the cost of
raw materials such as palm kernel oil
and coconut oil drop. It also said that
it would exit non-profitable business
areas where recovery was not possible.
The company, which makes prod-
ucts ranging from detergents and
toothpastes for UK supermarkets, said
that its revenues had risen by two per
cent in the three months to 23
October, with all three of its European
divisions delivering growth.
We have delivered a satisfactory
start to the year in which we have con-
tinued to benefit from growth in cen-
tral and eastern Europe and in our
core categories, said chief executive
Chris Bull.
McBride sees pressure on
pricing ease as costs drop
CONSUMER
TRISTEL, which specialises in infec-

tion and contamination control,
said yesterday its full year pre-tax
profits had fallen, but that trading
in the three months to September
were ahead of expectations.
Profit at the group fell to
508,000 from 1.7m in 2010, but
turnover rose six per cent to
9.29m.
Tristel, which raised equity of
3.9m in November 2010, said it is
now debt free and has cash of
441,000 compared to net debt of
270,000 in 2010. The firms shares
fell five per cent yesterday.
Compass snaps
up cleaner ICM
INDUSTRIAL
MARKETING software provider

Alterian has rejected an all-cash
takeover approach from British trans-
lation software firm SDL that values
it at about 50m.
SDL, which provides translation
services to multinationals such as
Bosch, GlaxoSmithKline and
Microsoft, said yesterday it had sent a
letter to the board of Alterian on
Friday outlining its interest in buying
the company at 80p per share.
SDL said the two companies had a
strong strategic fit.
We think a tie-up between the two
companies would make sense as it
would expand SDLs web content
management customer base,
Espirito Santos Vijay Anand said.
But Alterian urged its investors to
give the new management team the
necessary time to complete the busi-
ness review, execute its strategy and
deliver greater shareholder value.
Its shares shot up 27.6 per cent to
81p yesterday above the offer price.
Alterian knocks back SDLs
50m cash takeover offer
TECHNOLOGY
DUTCH sat-nav maker TomTom is

switching its focus away from the
cash-bleeding personal navigation
devices (PNDs) that made it a house-
hold name to its car and mapping
services to restore growth and prof-
its.
Best known for its PNDs used by
car and truck drivers, TomTom also
sells real-time traffic services
through its internet-connected
devices and smartphone apps, map-
ping data to businesses, as well as
navigation units which are built into
cars, including various Renault, Fiat
and Mazda models.
TomToms biggest division, and
biggest bleeder of sales and profits,
is the consumer PND unit, with
growth at the other units still far
from offsetting losses at PNDs.
The firm has struggled for months
to overcome slumping demand in
PNDs as consumers opt for free or
cheap navigation software as well as
cooler gadgets like smartphones and
tablet computers.
TomTom reported a 10 per cent
fall in third-quarter sales to 336m
(293m), dragged down by the con-
sumer PND unit, which reported a
23 per cent fall. But overall sales beat
analysts expectations.
It reported a 50 per cent rise in
third-quarter net profit to 29m, up
from 19m a year earlier, due in part
to a currency gain.
To the relief of investors, who have
seen TomToms shares plunge from a
high in 2007 of 56.32 to a
September 2011 low of 2.40,
TomTom finally said yesterday it will
focus on driving growth in more
promising areas including in-built
navigation systems for cars, as well
as mapping and live traffic services.
Its shares rallied 18 per cent to 3.62
yesterday.
TomTom begins turnaround
BY HARRY BANKS
TECHNOLOGY
TNK-BP will
not join suit
against BP
BY HARRY BANKS
ENERGY
BY PETER EDWARDS
SUPPORT SERVICES
News
IHG BOOSTED BY AMERICAN DEMAND
INTERCONTINENTAL Hotels Group, which owns the Crowne Plaza and Holiday Inn brands,
said yesterday its total revenues per available room (RevPAR) at its American operations
rose 9.5 per cent during the third quarter. The figure was up from 6.6 per cent a year ago,
and outperformed broader industry growth of 7.9 per cent. Picture: Vismedia
Profit down but
Tristel is upbeat
COMPASS Group has bought
Integrated Cleaning Management as
the catering giant looks to strengthen
its support services.
The company said its latest acquisi-
tion, which was made for an undis-
closed sum, meant it could offer
high-quality cleaning solutions to
more organisations across the UK.
ICM works at 3,800 client sites across
corporate office, hospitality, leisure
and retail sectors.
Its turnover was 61m in the year
to 31 March. Compass said the move
was a great opportunity.
SUPPORT SERVICES
ANALYSIS l BP PLC
p
18Oct 20Oct 21 Oct 24Oct 19Oct
445
440
435
430
425
420
438.10
24 Oct
THE FIRST growth since June was regis-
tered in yesterdays HSBC purchasing
managers index (PMI) for China, esti-
mating industrial activity.
At 51.1, the index registered its
strongest growth in five months.
Septembers reading came in at 49.9.
Any result above 50 indicates expan-
sion in the sector.
The positive reading is expected to
alleviate fears of a hard landing as
Chinese economic growth falls,
according to HSBCs China chief econ-
omist Hongbin Qu.
The manufacturing data should pro-
vide a steady start for the industry in
the fourth quarter, he said. The strong
data pushed up markets.
Hongbin Qu continued, inflation
components within the PMI results
confirmed stable output-price growth
and slower input-price inflation.
However, analysts pointed to the
slowing Eurozone economy as a risk to
Chinese growth. As a major export
market, a slowdown would cut
demand for Chinese goods.
Meanwhile Japanese exports rose
and imports shrank, which analysts
expect to put the countrys trade bal-
ance into surplus in the third quarter.
Exports expanded by 3.3 per cent
compared with August. Over the third
quarter export volumes increased by
3.4 per cent on the previous three
months. That compares with a 10 per
cent drop in quarter two compared
with quarter one.
Import volumes declined by almost
one per cent, quarter on quarter.
If this pattern is repeated for goods
and services exports and imports,
there will be a significant net trade
contribution to third quarter GDP,
said Lombard Street Researchs
Michael Taylor.
However, forecasts also suggest
declining international demand may
leave reconstruction as the main driv-
er of demand into 2012.
Concerns remain about the sus-
tainability of Japans industrial and
export recovery once capacity is
restored, continued Taylor.
A slowing global economy will
dampen export growth into 2012.
Factory boom
averts hard
landing fears
BY TIM WALLACE
ASIAN ECONOMY
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JAPANS finance minister put
traders on alert for possible curren-
cy intervention yesterday as the
yen's rise to a record high against
the dollar threatened to further
squeeze exporters' profits and hold
back economic recovery.
Japan's export growth showed
signs of resilience, slowing less than
expected in September, finance
ministry data showed, but econo-
mists warn that persistent yen
strength and Europe's sovereign
debt woes pose increasing risks to
external demand.
The Bank of Japan, which meets
on Thursday, will probably cut its
economic forecasts because of slow-
ing global growth but keep mone-
tary policy unchanged unless
disappointment over Europe's plans
to solve its crisis roils markets.
Even if the BOJ keeps policy
unchanged this week, Japan's gov-
ernment and central bank may not
be able to hold off from taking
action much longer as safe-haven
flows keep the yen stubbornly high
against the U.S. currency.
The dollar/yen rate fell sharply,
to between 75 and 76 yen, in a short
time. This is an utterly speculative
move and not reflecting the eco-
nomic fundamentals at all. This is
regrettable, Finance Minister Jun
Azumi told reporters.
If this move becomes excessive,
we have to take decisive action. I
already instructed my staff on
Saturday to be prepared to take
action.
Azumi added that the strong yen
would have a major impact on
Japan's export sector, especially the
auto industry, and could dent the
country's economic recovery from a
slump triggered by earthquake and
tsunami in March.
Azumi spoke after the dollar hit a
record low of 75.78 yen on trading
platform EBS on Friday.
Japanese finance minister sounds
intervention alarm on strong yen
BY HARRY BANKS
JAPANESE ECONOMY
Haldane says
more capital
just the start
FORCING banks to hold more capital
will help make the financial system
safer but deeper changes are needed
to give bankers the right incentives,
one of the Bank of Englands top offi-
cials said yesterday.
Andrew Haldane, executive direc-
tor for financial stability at the Bank
of England, said there is a gover-
nance fault-line whereby ownership
and control rights of a bank are exer-
cised by shareholders, but equity has
become a vanishingly small fraction
of their balance sheet.
That calls for fundamental
reform, Haldane said in his Wincott
Annual Memorial Lecture in London.
Haldane, who is also a member of
the Banks Financial Policy
Committee, which is set to play a key
role in shaping how banks are super-
vised, made several suggestions,
including ending the tax advantage
of debt in favour of a tax advantage
for equity to bolster capital cushions.
He also said hybrid debt, known as
contingent capital, could be used but
only if its conversion from debt to
equity is early and non-discretionary
so that it is an early health scare for
a bank and not the last rites.
He also said the too big to fail
issue needs urgent attention, given
the huge implied subsidies involved.
The scale of subsidy suggests there
is a considerable distance to travel
before debtor discipline could be fully
effective in checking risk-taking,
Haldane said.
BY HARRY BANKS
ECONOMICS
News
Chinese factories reported surprisingly strong output growth in October Pic: REUTERS
50=no change
ANALYSIS l Chinas manufacturing is looking up
Apr 06 Apr 08 Apr 10 Apr 04
60
55
50
45
40
35
HSBC China
manufacturing PMI
Markit Eurozone
manufacturing PMI
ECONOMISTS VIEWS: HAS CHINAS ECONOMY
AVOIDED A HARD LANDING? Interviews by Tim Wallace
QINWEI WANG | CAPITAL ECONOMICS

At 51.1, this months PMI estimate is very strong. There are risks
ahead, however - Eurozone figures are very disappointing. Furthermore, Chinas
PMI may reflect output rising simply to replenish and increase inventories, which
have been very low recently, rather than signaling strong demand growth.
CHRIS SCICLUNA | DAIWA CAPITAL MARKETS

Having recently indicated contraction, the turnaround in Octobers flash
PMI offers cause for optimism, suggesting the particularly soft patch for the sec-
tor has come to an end. Policy tightening has produced intended results, such as
slowing fixed investment, while consumption growth remains stable.
VICTORIA CADMAN | INVESTEC

The manufacturing PMI adds weight to our view that fears of a sharp
slowdown in Chinese growth are overdone. Official data confirms this with indus-
trial output expanding 13.8 per cent on the year in September. The continued
expansion should provide some well needed support for global growth.
Chicago Fed index up in September

THE FEDERAL Reserve Bank of
Chicago said yesterday that the
National Activity Index, which
gauges the health of the US econo-
my, rebounded from last month, yet
continues to show the economy
growing at a below average pace.
The headline index compiled by
the bank rose to -0.22 in September
after being revised down to -0.59 in
August, with the more-representa-
tive three-month moving average
rising to -0.21 from -0.28.
The bank said the rebound was
driven by gains in employment-
related indices, which contributed
0.04 compared with -0.12 in August.
However, the consumption and
housing category remained firmly
negative, with the category at -0.30
in September compared with -0.38
in August.
The index is a weighted average of
85 indicators of national economic
activity. Overall, 39 of the indicators
were positive, while 46 were nega-
tive. Fifty-seven of the indicators
improved from August to
September, 27 declined and two
remained unchanged.
BY KASMIRA JEFFORD
US ECONOMY
News
Barclays Wealth
The wealth manager has appointed
Matthew Wotton to manage the sports,
media and entertainment team within
the UK & Ireland private bank. He joins
from HSBC, where he most recently led
the relationship management team for
the global sports group.
Ernst & Young
The financial services firm has made
four senior appointments to its UK &
Ireland employment tax business. Ian
Hopkinson joins from KPMG to lead the
team, John Chaplin and Rajesh Bhundia
both join as a directors from KPMG,
and Mark Morton has been promoted
internally to director.
DLA Piper
The law firm has appointed Andrew
Symons as a partner in its specialist
insurance and reinsurance team, part of
the firms litigation and regulatory
group. Symons previously spent 16
years at CMS Cameron McKenna,
where he was a partner in the reinsur-
ance and insurance team.
Premier Asset Management
Jacob Robbins has been confirmed as
lead manager of the asset managers
premier global alpha growth fund, join-
ing the global equity team on 8
November. Robbins joins from Investec
Asset Management, where he was glob-
al dynamic equity portfolio manager.
Royal London Asset Management
The fund manager has hired Neil
Wilkinson as manager of the Royal
London European growth fund. Wilkinson
was previously director of European equi-
ties at Hermes Fund Managers.
TT Electronics
The electronic component firm has
appointed Stephen King as a non-execu-
tive director. King is currently finance
director of Caledonia Investments, and
was previously finance director of De La
Rue and of Midlands Electricity.
KPMG
Paul Evans has been appointed as a
director in KPMGs risk consulting prac-
tice. Evans began his career in the Royal
Navy before rising to the Serious
Organised Crime Agency, where he was
the executive director for intervention,
responsible for shaping and establishing
a new approach to organised crime.
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
Caterpillar profits
fuel Wall St gains
U
S stocks rose yesterday as a flur-
ry of merger activity and strong
earnings from Caterpillar
boosted investor sentiment and
kept the three-week rally intact.
Equities have risen on hopes a reso-
lution to Europes sovereign debt cri-
sis is on the horizon and a reduced
likelihood of a US recession after
stronger-than-expected corporate
results and economic data.
Adding to the positive tone was a
batch of M&A activity in the health
care and technology sectors involving
deals totalling more than $5bn.
Caterpillar jumped five per cent to
$91.77 to lead the Dow higher after
the worlds largest heavy equipment
maker reported a 44 per cent jump in
quarterly profit on record revenues.
The market is completely con-
vinced at the moment that Europe is
going to be successful with a plan
that the market is going to like -- that
they think is credible -- clearly, said
Ken Polcari, managing director at
ICAP Equities in New York.
The other thing is this week is a
big, big week in terms of mining
names, energy names, industrial
names . Weve gotten some good fore-
casts going forward, so as long as all
that holds, that is what is fueling this
fire.
The Dow Jones industrial average
advanced 0.89 per cent to 11,913.62.
The Standard & Poors 500 Index rose
1.29 per cent, to 1,254.20. The Nasdaq
Composite Index gained 2.35 per
cent, to 2,699.44.
The gains put the S&P 500 up near-
ly 11 per cent for the month, putting
the benchmark index on track for its
best monthly performance since
December 1991.
The recent rally has pushed the
broad index to the top of its trading
range between 1,230 and 1,250 where
it has struggled to advance due to
conflicting headlines from Europe.
Even though earnings fueled gains,
solving Europes debt crisis will be
crucial to further gains. Light volume
suggested investors would remain
cautious until the details of the euro
zone plan were known.
We remain within that trading
range and this week is going to be
chock full of these earnings. Like
Caterpillar today was a very strong
number, so if we continue to get that
this week, dont be surprised to see
the market go there, said Polcari.
Oracle Corp said it would acquire
RightNow Technologies, which pro-
vides cloud-based customer services
software, for about $1.5bn, or $43 per
share. RightNow surged 19.4 per cent
to $42.94 while Oracle added 2.3 per
cent to $32.87.
B
RITAINS top share index hit a
two-and-a-half-month closing
high yesterday, as strong manu-
facturing data in China lifted
miners and on hopes that plans to end
the Eurozone debt crisis will be
announced at a summit this week.
Miners rose 5.6 per cent, contribut-
ing 34 points to the UK benchmark, as
Chinas manufacturing sector showed
expansion for the first time in three
months, easing worries of an abrupt
slowdown in the world's second-
largest economy and top metal con-
sumer.
Miners Kazakhmys, Lonmin,
Antofagasta and Rio Tinto were the
top four gainers, up between 7.1 and
eight per cent.
Expectations that Eurozone leaders
will announce a comprehensive plan
to tackle the two-year-old debt crisis at
tomorrows summit also boosted the
index.
However, some traders said the mar-
ket was running ahead of the news
and that any disappointment would
lead to a sharp sell-off.
The market is no more than going
to a casino, Securequity trader Jawaid
Afsar said, adding that he was keeping
a neutral position.
The FTSE 100 ended up 59.41 points,
or 1.1 per cent, at 5,548.06 in relatively
light volume after rising 1.9 per cent
in the previous session.
Despite the rally yesterday, UK min-
ers are still down 26.5 per cent in the
year to date, hurt by the weakening
global growth outlook.
Michael OSullivan, director of glob-
al asset allocation at Credit Suisse
Private Banking, said miners were
cheap and that his bank was over-
weight on the sector, which would be
benefited by more M&A activity.
Supply is constrained, so to be able
to buy supply is important. Lots of the
big mining companies have a lot of
cash to undertake acquisitions,
OSullivan said.
But he said the sectors performance
would also depend on the situation in
Europe and Chinas financial sector,
which investors are concerned is sad-
dled with problem loans after Beijing's
stimulus drive after the collapse of
Lehman Brothers in 2008.
UK banks advanced 2.5 per cent yes-
terday, outpacing a 1.3 per cent rise in
Eurozone banks, as policymakers in
the currency bloc worked on a wider
solution to the debt crisis ahead of
tomorrows deadline.
Evolution Securities analyst Ian
Gordon said investors should recog-
nise that UK banks substantially share
Nordic banks defensive qualities
against a European sector that is
preparing to drown in new equity
issuance.
Lloyds Banking Group climbed 5.3
per cent. The bank said on Sunday that
a flotation of 632 branches, which it
has been ordered to dispose by regula-
tors, remained an option, along with a
sale of the branches.
The FTSE 100 has so far fared better
than peers in continental Europe this
year, down six per cent, as British com-
panies are seen to be less affected by
the two-year-old sovereign debt crisis.
Germanys DAX has shed 12.4 per cent.
We have been more bullish on the
UK slightly, relative to Europe. That
has worked. But we are obviously
aware that if you do get a positive sur-
prise from the politicians, that will
start to unwind, said Nick Nelson,
European equity strategist at UBS.
FTSE 100 companies are expected to
post average year-on-year earnings
growth of 16.2 per cent for 2011 and
10.8 per cent for 2012, against a
decline of 1.5 per cent for DAX firms
this year and a 9.4 per cent increase
next year, Reuters data showed.
FTSE 100 hits fresh high as
good China data lifts miners
THELONDON
REPORT
THENEW YORK
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Vivendi
17.0
16.5
16.0
15.5
15.0
14.5
Aug Sep Oct
16.46
24 Oct
VIVENDI
Nomura rates the French entertainment and media group as neutral with
a target price of 20.60, after revising its estimates for tax changes and
lowering its forecast for dividend per share. The broker says management
is likely to err on the side of caution when setting dividends, and says
changes to French tax rules mean net income estimates are lowered by 9-
10 per cent for 2011-13.
ANALYSIS l Randstad Holding
30.5
27.5
25.0
22.5
20.0
Aug Sep Oct
26.68
24 Oct
RANDSTAD
Ahead of second quarter results on Thursday, UBS rates the world's second
largest staffing company as a buy with a target price of 40. The broker
sees little or no growth in the UK, or in low-skilled industrial jobs in France
and the US, but says that key markets remaining below peak mean even low
GDP growth should boost revenue. UBS expects Randstads organic sales
growth exit rate to be at least five per cent for September/October.
ANALYSIS l Shire PLC
2,100
2,000
1,900
1,800
Aug Sep Oct
p
1,983.00
24 Oct
SHIRE
JP Morgan rates the pharma group as neutral with a target price of 2,002p
after the company gave an update on its Vyvanse ADHD product. A phase III
study showed a statistically significant benefit versus the placebo, and the
broker sees peak European sales of 450m by 2020, or around 50 per cent
of the projected ADHD market share. With Shire results due on Friday, the
broker expects Vyvanse to be a key focus of the call.
25Jul 12Aug 2Sep 21 Oct 22Sep
6,000
5,200
5,600
ANALYSIS l FTSE
5,548.06
25 Oct
Genzyme
David Meeker has been appointed as chief
executive of Genzyme, part of the wider
Sanofi healthcare group, effective from 1
November. He will also join the group man-
agement committee. Meeker joined Genzyme
in 1994 as medical director to work on the
cystic fibrosis gene therapy programme.
Rising to the position of president of the
global rare disease business, he oversaw the
global launches of the patented drugs
Aldurazyme, Fabrazyme and Myozyme.
Y
ESTERDAYS Tory backbench rebellion
over a referendum on Europe has high-
lighted again how Conservative leaders
seem effortlessly capable of creating a
political crisis out of a drama whenever the EU
edges to the top of the agenda.
To be sure, none of the three main parties
have a consistent or honourable record on the
question of a Euro-referendum. Labour and the
Liberal Democrats promised to let the people
decide on the proposed EU constitution, but
swiftly reneged on the grounds that it had been
relabelled as the Lisbon Treaty. But it is for the
Conservatives that this issue is truly toxic. The
party is no longer divided between those sup-
portive of the European project and those antag-
onistic to it, but instead splits fairly equally
between renegotiators and withdrawal-
ists. The Prime Minister is therefore sail-
ing in very treacherous waters.
However, he has a couple of things
going for him if only hed realise it.
Firstly, his predictions and fears
about the European project over the
past decade have been shown to be
broadly accurate. In stark contrast,
those of us who believed, at the
time, that the Maastricht Treaty
was a plausible recipe for decen-
tralisation and fiscal prudence
have a lot of explaining to do.
The debt and deficit obligations
of members of the single currency
have effectively only been observed
in the breach. Reckless spending by
the Mediterranean countries was
not brought under control. The
commitment to subsidiarity (the
idea that decisions should be made
at member state rather than
European level if at all possible) has
been shown to be wafer thin, at best.
A European Union genuinely com-
mitted to devolving power rather
than centralising it would not be
hellbent on pushing through a one-
size-fits-all directive on the rights of part-time
and agency workers. It is this sort of interfering,
socialist approach that should lead anyone com-
mitted to liberalism and the market economy to
question not which country the eurocrats come
from, but which planet. When Nicolas Sarkozy
loses his temper with the Prime Minister it is a
reflection of the formers irritation that the lat-
ters scepticism is being borne out.
David Camerons second big advantage is that
it looks like he may very soon be in a position to
actually convert some of his analysis into policy.
If there is to be an Intergovernmental
Conference to recalibrate and redesign the EU
and to allow its inner core to bind themselves
more tightly together, then the UK has real lever-
age because of our national veto.
Today, a binary decision on in or out no
longer captures the range of options we may
shortly face as a country. The three-way referen-
dum proposed by David Nuttall and debated in
Parliament yesterday tacitly recognises this.
Nuttall argues that the British people should be
allowed to choose between withdrawal, the sta-
tus quo and a new relationship based on trade
and co-operation. But this third option is too
vague. In fact, it might be the option that Angela
Merkel, Sarkozy and Herman van Rompuy
would plump for. How much co-operation? Over
which policy areas? Managed how exactly?
The painful and complex truth is that, within
the next couple of years, the UK could face as
many as four very different choices. We could
opt for complete withdrawal from all European
institutions and go for independence. We could
go for the Norwegian or Swiss route of EFTA/EEA
membership (which would still involve some
restrictions on our national sovereignty). We
could endorse whatever package of measures
David Cameron is able to extract from any new
treaty negotiations (presumably involving the
UK staying in the EU but in some form of outer
core). Finally, we could throw ourselves head-
long into a more integrated inner Europe.
The precise nature and relative attractive-
ness of these four options remains extremely
hazy today, but could well come into sharp con-
trast over the next year or two. That would be the
time to allow the people to decide. Vague, aspira-
tional and contestable wording in a 2012 referen-
dum about hypothetical scenarios is a recipe for
a meaningless plebiscite. Concrete proposals are
needed even if they are complex ones.
The Prime Minister should commit himself to
such a referendum now and within the lifetime
of this Parliament. He should say that there are
likely to be more than two options on the ballot
paper, but we cannot be sure today what those
options would be exactly. He would, however,
trust the British people to have the wisdom and
maturity to select from a menu rather than just
say yes or no. That would be a brave and deci-
sive move. It would probably also go some way to
uniting the Conservative party. But, more impor-
tantly, it is the right decision for Britain.
Mark Littlewood is the director general of the Institute
of Economic Affairs.
24
The Forum
CITYA.M. 25 OCTOBER 2011
Within the next few years,
the UK could face as many
as four choices on Europe.
David Cameron has a point
on Europe: We need a vote,
but the time isnt quite ripe
cityam.com/forum
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
MARK LITTLEWOOD
25
A former ENRC
non-exec defends
foreign firms in
the Citys sights
The Russians are
coming: Roll out
the red carpets
B
ACK in the mid-1960s, I wasted a wet
afternoon watching a truly silly film.
The plot was a melange of bluster, mis-
understanding, clashing cultures and
xenophobia. The title was The Russians Are
Coming, the Russians Are Coming. Readers
with an interest in the Citys health will recog-
nise a plot that is in danger of repeating itself.
Three massive Russian businesses have
recently declared their intention to seek a list-
ing in London. Polyus Gold, Polymetal and now
Evraz. Instead of rolling out the red carpet, the
reaction has been bluster and xenophobia.
Grumpy fund managers have demanded
irrelevant regulatory interventions, railing
against the size of the companies planned free
floats (the proportion of shares held by non-
strategic shareholders and hence reasonably
liquid) and exhibiting little Englander per-
sonas by arguing that the hallowed FTSE index
should be reserved for great British companies.
This all misses the point. The UK depends on
the Citys fee pool. Professional and financial
services accounts for 14 per cent of GDP; the
sector (the UKs largest) pays enough tax to
fund the Department of Education.
So what has driven so many to reject so
much? The answer is the recent experience at
ENRC and the brutal non-executive director
(Ned) ousting which, as a victim, I described as
being more Soviet than City.
ENRC, while providing some salutary les-
sons for us all, is far from being a reason to pull
up the drawbridge and to repel boarders.
ENRCs dysfunctional board was unable to
act independently of the founding 80 per cent
shareholders. Despite solemn commitments to
the contrary, ENRC was run as a private compa-
ny with a public listing. But the ENRC experi-
ence is not a reason to ban the listing of
entities from the former Soviet Union. It is a
reason to ensure that public companies have
functional boards. It is also a reason to see that
undertakings given to the UK listing authority
at IPO are adhered to. Such governance condi-
tions should be applied to all FTSE companies
and policed by the minority shareholders.
The size of the free float is irrelevant
because the liquid minority can affect the
share price whereas the illiquid majority can-
not. Paradoxically, the smaller the free float
the greater the minoritys power to drive the
share price. Automatic membership of the
FTSE is also irrelevant. The argument for keep-
ing foreigners out is to protect tracker funds
from having to invest in them. The fault here
lies with blind investment rather than on the
quality of the underlying investment.
Rather than calling on regulators to become
even more interventionist, institutional share-
holders should engage with the Neds who rep-
resent their interests and hold their investee
boards to account. For example, ENRCs institu-
tional holders could demand sight of the inde-
pendent report into board performance by
ICSA and an explanation of how the recent
non-reorganisation met its recommendations.
It is conformance to the UK Governance
Code that should differentiate acceptable com-
panies from the rest not geographic origins
or ownership structures. Far from rejecting
enthusiastic new customers, we should
embrace them: put simply, we need more
Soviets in the City.
Ken Olisa is the chairman of Restoration Partners.
Thrive responsibly
Bill Durodie [Why so-called cor-
porate-social responsibility is not
the answer to our problems, yes-
terday] appears to be under the
spell of the ancient myths of cor-
porate social responsibility
(CSR) myths that the majority
of the FTSE have left behind
long ago. A study today of FTSE
100 and increasingly FTSE 250
corporate responsibility reports
would reveal businesses under-
stand how meeting their rele-
vant responsibilities to their
people, communities, and, if
appropriate, the environment, is
just as important as the atten-
tion they pay to their business
model, customers, strategy, inno-
vation and marketplace.
Corporate responsibility activity
is a key component of business
sustainability; a companys abili-
ty to survive and thrive. In
todays economic climate that is
something we should all value.
Nick Smith, managing director,
Living Reporting
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
KEN OLISA
BY ANTHONY J. EVANS
CITYA.M. 25 OCTOBER 2011
The Forum
W
HAT lessons
can Britain
draw from
I r e l a n d ?
Institutions in Crisis:
European Perspectives
on the Recession is a
new book edited by
monetary economist
David Howden, presenting essays on how the finan-
cial crisis has played out across Europe. I have a
chapter on Ireland, in which I make a fairly simple
argument. In 2007, Irish real gross national income
per capita had overtaken the UKs. Academics clam-
oured to explain the Celtic Tiger. Some downplayed
the role of EU structural funds, on the grounds that
we shouldnt expect to see sustainable growth
stemming from government transfers. With the
benefit of hindsight, I suggest that this might have
served as a warning that the economy was less
healthy than it appeared.
The narrative behind Irelands transformation is
reasonably clear a series of policy changes that
helped to increase economic freedom helped to
deliver strong growth, but this proved unsustain-
able as a flood of easy money (in the form of gov-
ernment spending and cheap credit) turned
growth into boom into bust. The austerity package
that the Irish government then enacted is an
intriguing test for economic theory. Lest we forget,
shadow chancellor Ed Balls seized upon poor
growth figures for the second quarter of 2010,
declaring that: These figures are a stark warning
to governments across Europe including our own.
That is not a credible economic strategy because
lower growth and fewer people in work and pay-
ing taxes ultimately leads to a bigger deficit, not a
smaller one.
Well, guess what?
l Irelands gross national product is now growing
l Domestic demand is rising
l Bank deposits are rising too
l Bond yields are now under 10 per cent
l Unemployment has continued to rise, but has
slowed from the spring 2008-autumn 2009 spike
In short, as the economist Tyler Cowen has doc-
umented, the scare stories have yet to materialise.
Commentators such as Paul Krugman were wrong.
And yet it is harder to establish the direct influ-
ence of a set of austerity measures. Despite econo-
mists pretensions of scientism, you still cannot
disprove the claimed economic benefits of a differ-
ent policy as you may disprove the claim that ice
will stay frozen at 20 degrees celsius. Although
economic analysis is grounded in what-if stories or
counterfactuals (for example, opportunity cost is
defined as the highest-value opportunity given up
to pursue another action), the dominant, quantita-
tive methods give us plenty of measures of what
happens but cant resolve arguments about what
else might have been. All we can ask, as with
Ireland, is whether anyone correctly anticipated
what actually transpired.
Progress in our theoretical models will only
come when those on both sides of the debate do
two things: stop seizing on data to prove their own
prior beliefs; and learn how to conduct serious
counterfactual analysis. Ireland doesnt prove that
austerity is harmless, but it should give pause for
thought to those who warn of doom.
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.
Ireland can help teach
experts to be modest
Email: theforum@cityam.com
Twitter: @cityamforum
E
QUITIES staged a strong rally towards the end of
last week. The move took a number of stock indices
back up through significant resistance levels. The
FTSE 100 broke above its 100-day moving aver-
age, around the 5,500 mark, while the major US indices
behaved with even greater bullish conviction. A few
pieces of better-than-expected economic data have con-
vinced some investors that fears of another recessionary
slump have been overplayed. After a summer of down-
grades to growth estimates, sentiment appears to be
turning more positive. On top of this, the third quarter
US earnings season is being viewed as supportive for
equities. Despite some high profile disappointments from
the likes of Apple, IBM and Wells Fargo, the majority of
companies continue to beat on both earnings and rev-
enues. The season moves up a gear this week with just
under 40 per cent of S&P 500 companies due to report.
But for now all eyes are on Europe as policymakers
squabble ahead of the delayed and extended summit
this Wednesday. There are three key issues which have
to be addressed: an increase to the 21 per cent haircut
on Greek debt under the Private Sector Involvement
programme, agreement over the amount required for
bank recapitalisation and leveraging the EFSF/ESM.
There is plenty of scope for markets to be disappointed
by the outcome. There is also the danger that EU lead-
ers bottle it again and lob the problem back to the G20
to deal with in its November meeting. But ultimately
the only thing that will truly stop the rot is a commit-
ment towards a Eurozone fiscal union.
The German Dax is the benchmark stock index at
Europes core. Unlike the FTSE and the major US
indices, the Dax is trading a long way short of its 100-
day moving average at 6,290. After forming a double
bottom at 4,963 one month ago, the German index has
had a decent 20 per cent rally. But it now has to clear
6,070, which marks the 38.2 per cent Fibonacci
retracement of the rally from early 2009 to the high of
7,600 reached earlier this year. The area around 6,070
is acting as resistance just as it did back in August.
With the European debt crisis remaining the focus of
attention, its the performance of the Dax which holds
the key for equity traders.
KEEP ONE EYE
ON ANY MOVE
IN THE DAX
DAVID MORRISON
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T
RADING without reference to eco-
nomic announcements is a risky bet,
even if they are used simply as an
indication that its time to get out of
the market. However, avoid getting bogged
down in too much data as this can
obscure the useful with the useless.
EMPLOYABLE DATA
Non-farm payrolls, explains Angus
Campbell of Capital CFDs, remains the
biggest economic data release for the
financial markets. This, he says, is because
it is so important for the global economy
how the labour market in the US is doing.
He says: Every first Friday of the month,
clients remain glued to their screens to
find out what the number is and take
advantage of any big moves on Wall Street.
Campbell notes that only last month a ter-
rible figure was followed by a move of over
200 points in the Dow, which saw frantic
trading throughout the afternoon (see
graph, right, top). Economic indicators
have a short shelf-life of a couple of hours,
explains Michael Hewson of CMC Markets,
which often see a short term pop in the
markets.
Even if you have no interest in short-
term trading, it is impossible to ignore eco-
nomic indicators, as the reaction to shocks
can move markets. SpreadCos Ian
OSullivan says unless you are taking a
position, maybe stay away until the dust
settles. He thinks the volatility immediate-
ly after an economic data release can be
exacerbated by illiquidity, as many market
makers and participants pull their bids
and offers before the news. This can lead to
violent spikes one way or the other in the
immediate aftermath, which can quickly
reverse the other way. It is not uncom-
mon, says OSullivan, for fat finger
trades, or indeed just some traders misin-
terpreting the significance of the numbers
for something like euro-dollar, to shoot
higher by 30 or 40 pips, only to tumble
right back down and go the other way. As
such, he suggests you either set yourself
very deep stop losses, or be prepared to suf-
fer being stopped out in the volatility
around the news. Of course, if you can
time it right, adds OSullivan, or play off
important support/resistance levels, then
you might find yourself filled on a limit
order as it pops one way and in a very nice
position should it quickly move in the
opposite direction.
Without stops as wide as the Nile, there
is no ignoring the data. Will Hedden of IG
Markets says: The obvious but important
point to note with these is that they will
happen overnight and thus can give you a
shock or a slice of luck if you have held
exposure overnight when a big announce-
ment like a GDP figure or interest rate deci-
sion occurred.
CONNECTING CORRELATIONS
Hewson says economic indicators can be
used to uncover interesting correlations.
He notes that a connection is in evidence
between European Manufacturing PMI fig-
ures and European Central Bank (ECB)
interest rate moves, with the former acting
as a leading indicator (See graph right, bot-
tom). Based upon this, Hewson expects the
ECB to cut rates as early as next week, if not
December.
However, too much information can
potentially be as uninformative as too lit-
tle. The skill is in selecting the right infor-
mation. Hedden notes: Analysts and the
media love to talk about the Baltic Dry
Shipping Index as a barometer of world
trade. This prompts many to ask IG if they
can trade it (which they cant). Hedden says
he leans further towards the school of
thought that there is too much data. He
suggests not worrying about every little
thing just look how many different UK
house price indicators there are.
Finding your trading style can take time
and inevitably undergoes evolutions
understanding the ways data moves mar-
kets should be key to this education.
When information is released its time for
short-term traders to profit, says Philip Salter
Snoop a scoop:
Economic data
announcements
T
HE tobacco firms have been popular
defensive plays in the recent uncer-
tainty, but with global economic sen-
timent rallying at least temporarily
the risk has to be that stocks like this
start to lag. However, British American
Tobacco has an interim management
statement due on Wednesday that will
doubtless provide further reminders over
the benefits of exposure to emerging mar-
kets. IG Markets quotes British American
Tobacco at 2,841p-2,841.5p.
BP shares have undergone a renais-
sance of late. In the past month, fears
about the extent of its Gulf of Mexico lia-
bilities have started to recede in light of
recent settlements with some of its part-
ners. Todays third quarter trading update
is widely expected to announce a drop in
profits for the quarter to $4.9bn. CMC
Markets quotes BP at 436.10p-436.66p.
GlaxoSmithKline reports its interim
results on Wednesday and investors will
be eagerly awaiting an update on its
pipeline of patents. The defensive stock
has managed to serve more risk adverse
investors well, hovering around the 10
to 13 mark, while yielding an attractive
4.7 per cent. Capital CFDs quotes
GlaxoSmithKline at 1,389.8-1,392.2.
William Hill updates the market on
Thursday, with the recent walkouts by
staff in some of its overseas operations
still fresh in investors minds, as well as
analysts who have downgraded Hill fol-
lowing the disruptions. The shares look
held at the 240p level, with resistance
going back to 2008/2009 so look to sell
on any approach to these levels again.
Spread Co quotes William Hill at
228.05p-228.69p.
Philip Salter
THE TIPSTER
TOBACCO IS ON
FIRE AND WILL
STAY ABLAZE
CITYA.M. 25 OCTOBER 2011 27
Better technology, better pricing
2000 2002 2004 2006 2008 2010
ANALYSIS l Eurozone PMI and rate changes
1.0
-1.0
0.5
0.0
-0.5
70
60
65
50
45
40
35
30
55
ECB rate changes
(percentage points)
Source: Thompson Reuters Datastream, Markit
Eurozone manfacturing
PMI (right hand scale)
4Sep 1 Sep 2Sep 3Sep 5Sep 6Sep
ANALYSIS l Unexpectedly bad non-farm payroll data moves the Dow
11,800
11,600
11,400
11,200
11,000
10,800
Source: Capital Spreads
Information signals
can be confusing
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Wealth Management | CFDs
T
HE financial markets might
be nervous and jumpy, but
you dont need to be if youre
thinking about learning to
trade. There are plenty of ways to
limit your losses. Here are our top
three tips from the experts.
1. KEEP YOUR EMOTIONS IN CHECK
Jamieson Blake of Capital Spreads
says: Emotional psychology is one
of the main players in trading. If you
sit in front of the screen all day
youre going to get tempted to chop
and change your positions. One of
the key things is to get your strategy
in place and stick to it, whether that
means locking your computer and
hiding your mobiles, keep the origi-
nal levels in place otherwise youll
just end up making the age old mis-
take of running your losses and cut-
ting your profits.
2. UNDERSTAND THE INSTRUMENT
Its quite important to try and
understand the instrument in the
first place, says IG Markets Will
Hedden. This means getting to know
the different types of stop loss
and how to use them. A
stop loss is an application
that throws you out of a
trade when the price the
trader has named is hit.
The first type is the
guaranteed stop. On some
trading platforms using one is
mandatory. Once you have
opened a trade, the system
will allocate your stop loss
order, so you can amend
it to a level that you
are comfortable with,
says Angus Campbell
of Capital Spreads. This
means that you can choose the
level of risk you want to be
exposed to.
If there isnt a guaranteed
stop, in his book The Naked
Trader, Robbie Burns says: Its gen-
erally worth paying the extra spread
and getting the guarantee if you are
a very new trader. Once you are con-
fident then perhaps it isnt worth
paying the extra.
But beware, putting the stop at an
appropriate level isnt always easy.
Hedden says: Theres no point put-
ting it too close on a highly volatile
instrument. Currencies, for exam-
ple, can make big moves almost
daily, whereas individual stocks out-
side major announcements tend to
be steadier.
A trailing stop is also available. It
moves your stop up with the market.
Hedden says that you can do this
manually with a regular stop loss,
but warns that it is rather incon-
venient since you have to keep edit-
ing the open position.
3. OTHER WAYS TO TRADE
If this all sounds too risky for you,
there are other ways to trade. Using
a binary, for instance, can help you
get used to market movements. This
is a fast moving yes or no bet that
allows you to deal on the perform-
ance of a financial market over a
specific time with
only two
possi-
ble out-
comes. The
advantage of doing
this is that you know
exactly what your max-
imum exposure will
be when you start.
Likewise, a custom
bet something that
allows you to bet on
the next five trading
minutes alone is
thought to give new
traders even more control.
New to contracts for difference? Make
sure you have a strategy to stop you
losing money, writes Donata Huggins
Placing an automated stop loss is one way to prevent yourself losing money Picture: GETTY/Montage
Three ways
to limit your
trading losses
BAE Systems . . . . . .284.7 9.1 361.1 248.1
Chemring Group . . . .522.0 20.5 736.5 485.0
Cobham . . . . . . . . . . .182.4 3.1 245.5 168.5
Meggitt . . . . . . . . . . . .371.4 6.8 397.6 304.9
QinetiQ Group . . . . . .117.0 0.6 136.3 96.7
RoIIs-Royce Group . .705.0 4.0 709.5 557.5
Senior . . . . . . . . . . . . .160.7 3.2 190.6 131.1
UItra EIectronics . . .1593.0 0.0 1895.0 1305.0
GKN . . . . . . . . . . . . . .194.0 9.9 245.0 157.0
BarcIays . . . . . . . . . . .186.7 4.8 333.6 138.9
HSBC HoIdings . . . . .530.0 12.0 730.9 473.6
LIoyds Banking Gr . . .34.6 1.7 71.9 27.6
RoyaI Bank of Sco . . .25.0 0.5 49.0 19.7
Standard Chartere .1427.0 24.5 1950.0 1169.5
AG Barr . . . . . . . . . .1226.0 16.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .340.0 0.0 503.5 289.9
Diageo . . . . . . . . . . .1344.0 12.5 1347.0 1112.0
SABMiIIer . . . . . . . . .2306.5 11.5 2340.0 1979.0
AZ EIectronic Mat . . .240.0 1.3 338.1 206.1
Croda Internation . .1895.0 53.0 2081.0 1367.0
EIementis . . . . . . . . . .138.0 4.4 187.4 104.8
Johnson Matthey . .1814.0 18.0 2119.0 1523.0
Victrex . . . . . . . . . . .1199.0 43.0 1590.0 1025.0
YuIe Catto & Co . . . . .168.5 5.5 253.0 148.0
LON GD ONCE FIX AM...........1651.00 28.00
SILVER LDN FIX AM ..................31.82 0.71
MAPLE LEAF 1 OZ ....................33.98 0.06
LON PLATINUM AM................1522.00 31.00
LON PALLADIUM AM...............622.00 26.00
ALUMINIUM CASH .................2109.50 -61.50
COPPER CASH ......................7061.50 -24.35
LEAD CASH...........................1840.50 -49.00
NICKEL CASH......................18670.00 -260.00
TIN CASH.............................21750.00 200.00
ZINC CASH ............................1792.50 -39.00
BRENT SPOT INDEX................110.51 1.17
SOYA .....................................1212.25 -12.75
COCOA..................................2566.00 4.00
COFFEE...................................244.85 13.20
KRUG.....................................1716.00 23.40
WHEAT ....................................151.62 0.53
AIR LIQUIDE........................................93.41 1.30 100.65 80.90
ALLIANZ..............................................80.32 1.76 108.85 56.16
ANHEUS-BUSCH INBEV ....................40.24 0.24 46.33 33.85
ARCELORMITTAL...............................14.43 0.75 28.55 10.47
AXA......................................................11.10 0.39 16.16 7.88
BANCO SANTANDER...........................6.12 0.09 9.37 5.05
BASF SE..............................................51.63 0.84 70.22 42.19
BAYER.................................................44.87 0.12 59.44 35.36
BBVA......................................................6.40 0.11 9.58 4.94
BMW ....................................................57.88 0.69 73.85 43.49
BNP PARIBAS.....................................32.00 0.22 59.93 22.72
CARREFOUR ......................................18.61 0.53 34.29 14.66
CRH PLC .............................................14.16 0.76 17.40 10.28
DAIMLER.............................................37.31 0.59 59.09 30.52
DANONE..............................................47.83 0.14 53.16 41.92
DEU.BOERSE OFFRE ........................40.63 -0.45 55.75 35.46
DEUTSCHE BANK..............................28.48 0.65 48.70 20.79
DEUTSCHE TELEKOM.........................9.15 -0.11 11.38 7.88
E.ON.....................................................17.37 0.24 25.54 12.50
ENEL......................................................3.44 0.03 4.86 2.81
ENI .......................................................16.10 0.02 18.66 11.83
FRANCE TELECOM............................13.03 0.09 17.45 11.12
GDF SUEZ ...........................................21.58 0.08 30.05 18.32
GENERALI ASS...................................12.70 0.05 17.05 10.34
IBERDROLA..........................................5.29 0.06 6.50 4.29
INDITEX ...............................................68.37 -0.13 69.34 50.92
ING GROEP CVA...................................6.57 0.28 9.50 4.21
INTESA SANPAOLO.............................1.29 0.01 2.53 0.85
KON.PHILIPS ELECTR.......................15.50 0.22 25.45 12.01
L'OREAL..............................................79.77 0.27 91.24 68.83
LVMH..................................................117.85 2.45 132.65 94.16
MUNICH RE.........................................98.70 0.90 126.00 77.80
NOKIA....................................................4.89 0.18 8.49 3.33
REPSOL YPF.......................................21.95 0.28 24.90 17.31
RWE.....................................................31.15 0.75 55.88 21.22
SAINT-GOBAIN...................................34.22 0.92 47.64 26.07
SANOFI ................................................51.49 0.52 56.82 42.85
SAP......................................................42.59 0.26 46.15 32.88
SCHNEIDER ELECTRIC.....................43.59 1.44 61.83 35.94
SIEMENS .............................................75.54 1.53 99.39 62.13
SOCIETE GENERALE.........................19.75 0.78 52.70 14.32
TELECOM ITALIA..................................0.89 0.02 1.16 0.70
TELEFONICA ......................................15.35 0.12 19.69 12.50
TOTAL..................................................37.94 -0.07 44.55 29.40
UNIBAIL-RODAMCO SE...................143.45 -1.00 162.95 124.05
UNICREDIT............................................0.90 -0.01 2.03 0.64
UNILEVER CVA...................................24.61 0.04 24.90 20.90
VINCI ....................................................35.76 1.32 45.48 29.49
VIVENDI ...............................................16.46 0.47 22.07 14.10
VOLKSWAGEN VORZ ......................122.75 5.35 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5548.06 59.41 1.08
FTSE 250 INDEX . . . . . . . 10469.09 203.60 1.98
FTSE UK ALL SHARE . . . . 2861.43 33.60 1.19
FTSE AIMALL SH . . . . . . . . 713.52 4.71 0.66
DOWJONES INDUS 30 . . 11913.62 104.83 0.89
S&P 500 . . . . . . . . . . . . . . . 1254.19 15.94 1.29
NASDAQ COMPOSITE . . . 2699.44 61.98 2.35
FTSEUROFIRST 300 . . . . . . 988.99 10.86 1.11
NIKKEI 225 AVERAGE. . . . 8843.98 165.09 1.90
DAX 30 PERFORMANCE. . 6055.27 84.31 1.41
CAC 40 . . . . . . . . . . . . . . . . 3220.46 49.12 1.55
SHANGHAI SE INDEX . . . . 2370.33 53.06 2.29
HANG SENG. . . . . . . . . . . 18771.82 746.10 4.14
S&P/ASX 20 INDEX . . . . . . 2563.30 64.50 2.58
ASX ALL ORDINARIES . . . 4313.60 110.20 2.62
BOVESPA SAO PAOLO. . 56891.97 1636.74 2.96
ISEQ OVERALL INDEX . . . 2691.30 61.74 2.35
STI . . . . . . . . . . . . . . . . . . . . 2778.97 34.80 1.27
IGBM. . . . . . . . . . . . . . . . . . . 900.47 10.30 1.16
SWISS MARKET INDEX. . . 5788.63 35.11 0.61
Price Chg %chg
3M........................................................82.18 1.70 98.19 68.63
ABBOTT LABS ...................................53.45 -0.41 55.61 45.07
ALCOA ................................................10.58 0.35 18.47 8.45
ALTRIA GROUP..................................27.31 -0.14 28.14 23.20
AMAZON.COM..................................237.61 2.83 246.71 156.77
AMERICAN EXPRESS........................49.92 1.46 53.80 38.88
AMGEN INC.........................................58.95 0.36 61.53 47.66
APPLE...............................................405.77 12.90 426.70 297.76
AT&T....................................................28.88 -0.25 31.94 27.20
BANK OF AMERICA.............................6.72 0.26 15.31 5.13
BERKSHIRE HATAW B.......................77.24 -0.21 87.65 65.35
BOEING CO.........................................64.75 0.16 80.65 56.01
BRISTOL MYERS SQUI ......................32.53 -0.03 33.20 20.05
CATERPILLAR....................................91.77 4.38 116.55 67.54
CHEVRON.........................................106.27 0.74 109.94 80.41
CISCO SYSTEMS................................17.54 0.16 24.60 13.30
CITIGROUP.........................................31.60 1.30 51.50 21.40
COCA-COLA.......................................67.87 -0.32 71.77 60.30
COLGATE PALMOLIVE......................91.24 -2.68 94.89 74.39
COMCAST CLASS A..........................24.67 0.35 27.16 19.17
CONOCOPHILLIPS.............................72.12 0.29 81.80 58.37
DU PONT(EI) DE NMR........................46.09 0.94 57.00 37.10
EXXON MOBIL....................................80.17 0.04 88.23 63.47
GENERAL ELECTRIC.........................16.45 0.14 21.65 14.02
GOOGLE A........................................596.42 5.93 642.96 473.02
HEWLETT PACKARD.........................26.02 0.64 49.39 19.92
HOME DEPOT.....................................36.70 -0.16 39.38 28.13
IBM.....................................................182.25 0.62 190.53 138.40
INTEL CORP .......................................24.59 0.56 26.78 19.16
J.P.MORGAN CHASE.........................34.57 1.15 48.36 27.85
JOHNSON & JOHNSON.....................64.73 0.95 68.05 57.50
KRAFT FOODS A................................35.28 0.08 36.30 24.30
MC DONALD'S CORP ........................92.01 -0.31 92.45 72.14
MERCK AND CO. NEW......................33.53 0.18 37.68 29.47
MICROSOFT........................................27.19 0.03 29.46 23.65
OCCID. PETROLEUM.........................87.31 0.57 117.89 66.36
ORACLE CORP...................................32.87 0.75 36.50 24.72
PEPSICO.............................................62.10 -0.18 71.89 58.50
PFIZER ................................................19.36 0.30 21.45 16.25
PHILIP MORRIS INTL .........................69.48 -0.52 72.74 55.85
PROCTER AND GAMBLE ..................65.37 -0.89 67.72 56.57
QUALCOMM INC ................................53.61 1.59 59.84 42.45
SCHLUMBERGER ..............................69.88 2.50 95.64 54.79
TRAVELERS CIES..............................57.62 0.27 64.17 45.97
UNITED TECHNOLOGIE ....................76.65 1.09 91.83 66.87
UNITEDHEALTH GROUP...................49.03 1.11 53.50 34.50
VERIZON COMMS ..............................36.93 -0.49 38.95 31.60
WAL-MART STORES..........................56.78 -0.14 57.90 48.31
WALT DISNEY CO ..............................35.37 0.21 44.34 28.19
WELLS FARGO & CO.........................26.52 0.21 34.25 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.500 0.00
LIBOR Euro - overnight ..................0.856 0.00
LIBOR Euro - 12 months ................2.071 0.00
LIBOR USD - overnight...................0.141 0.00
LIBOR USD - 12 months.................0.921 0.00
HaIifax mortgage rate .....................3.990 0.00
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.000 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................3.750 0.52
European repo rate.........................0.730 0.00
Euro Euribor ....................................1.153 0.00
The vix index ...................................29.73 -1.58
The baItic dry index ........................2.153 0.00
Markit iBoxx...................................233.40 0.26
Markit iTraxx..................................175.29 -7.30
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.3920 0.0026
C/ 0.8702 0.0007
C/ 105.94 0.0663
/C 1.1488 0.0006
/$ 1.1488 0.0006
/ 121.70 0.0090
FTSE 100
5548.06
59.41
FTSE 250
10469.09
203.60
FTSE ALLSHARE
2861.43
33.60
DOW
11913.62
104.83
NASDAQ
2699.44
61.98
S&P 500
1254.19
15.94
RPC Group . . . . . . . .344.5 0.5 384.8 215.4
Smiths Group . . . . . .964.0 26.5 1429.0 907.5
Brown (N.) Group . . .262.3 1.8 311.2 252.5
Carpetright . . . . . . . . .485.0 -1.9 835.5 467.7
Debenhams . . . . . . . . .68.5 -0.4 77.4 51.2
Dignity . . . . . . . . . . . .830.0 -5.0 854.5 640.0
Dixons RetaiI . . . . . . .11.9 0.5 28.5 10.6
DuneImGroup . . . . . .503.0 9.0 550.0 383.9
HaIfords Group . . . . .329.7 7.0 459.7 268.6
Home RetaiI Group . .104.7 2.0 235.0 99.5
Inchcape . . . . . . . . . .329.4 11.6 425.4 268.1
JD Sports Fashion . .834.5 18.0 1030.0 753.5
Kesa EIectricaIs . . . .110.6 16.0 174.0 80.0
Kingfisher . . . . . . . . .268.7 5.5 287.1 217.0
Marks & Spencer G . .335.1 4.5 427.5 301.8
Mothercare . . . . . . . .191.0 -1.0 627.5 179.6
Next . . . . . . . . . . . . .2650.0 -18.0 2699.0 1868.0
Sports Direct Int . . . .237.6 1.4 266.2 125.5
WH Smith . . . . . . . . . .558.0 8.0 566.0 433.8
Smith & Nephew . . . .582.5 6.0 742.0 521.0
Synergy HeaIth . . . . .838.5 6.5 981.0 739.0
Barratt DeveIopme . . .92.1 4.1 119.0 67.5
BeIIway . . . . . . . . . . . .720.0 19.5 753.5 511.0
BaIfour Beatty . . . . . .262.1 16.3 357.3 228.6
GaIIiford Try . . . . . . . .448.6 13.2 530.0 276.5
Kier Group . . . . . . . .1426.0 51.0 1428.0 1097.0
Drax Group . . . . . . . .530.0 -6.5 540.5 353.6
SSE . . . . . . . . . . . . . .1349.0 -5.0 1423.0 1108.0
Domino Printing S . .550.0 12.5 705.0 434.3
HaIma . . . . . . . . . . . . .338.7 7.4 429.6 306.3
Laird . . . . . . . . . . . . . .137.7 1.8 207.0 127.9
Morgan CrucibIe C . .273.0 13.9 357.1 222.3
Oxford Instrument . .772.0 9.5 1010.0 495.0
Renishaw . . . . . . . . . .947.0 32.0 1886.0 862.0
Spectris . . . . . . . . . .1223.0 27.0 1679.0 1039.0
Aberforth SmaIIer . . .537.0 0.5 714.0 508.5
AIIiance Trust . . . . . .337.0 1.5 392.7 310.2
Bankers Inv Trust . . .394.8 5.1 428.0 346.5
BH GIobaI Ltd. GB .1193.0 -7.0 1210.0 1058.0
BH GIobaI Ltd. US . . . .11.7 -0.0 12.2 10.4
BH Macro Ltd. EUR . . .19.2 0.0 20.1 15.8
BH Macro Ltd. GBP 1985.0 10.0 2070.0 1630.0
BH Macro Ltd. USD . . .18.9 0.0 20.1 15.8
BIackRock WorId M .631.5 18.5 815.5 574.5
BIueCrest AIIBIue . . .169.0 0.3 176.2 162.4
British Assets Tr . . . .119.7 2.7 140.5 109.0
British Empire Se . . .460.0 8.3 533.0 409.9
CaIedonia Investm .1555.0 23.0 1928.0 1470.0
City of London In . . .290.0 3.9 306.9 257.0
Dexion AbsoIute L . .134.0 0.0 151.0 130.0
Edinburgh Dragon . .224.0 5.6 262.1 201.4
Edinburgh Inv Tru . . .474.7 5.5 492.2 414.9
EIectra Private E . . .1450.0 15.0 1755.0 1287.0
F&C Inv Trust . . . . . .289.9 4.1 327.9 261.5
FideIity China Sp . . . . .78.8 1.8 128.7 70.0
FideIity European . .1027.0 13.0 1287.0 912.0
HeraId Inv Trust . . . . .465.5 8.4 545.5 419.0
HICL Infrastructu . . . .117.8 0.4 121.3 112.7
Impax Environment . .91.0 -0.6 130.5 88.5
JPMorgan American .821.0 4.0 916.0 721.5
JPMorgan Asian In . .186.5 4.5 250.8 170.1
JPMorgan Emerging .522.0 12.0 639.0 480.1
JPMorgan European .758.0 3.0 983.5 692.5
JPMorgan Indian I . . .359.1 2.0 502.0 350.0
JPMorgan Russian .517.0 22.1 755.0 415.1
Law Debenture Cor . .350.0 5.0 385.0 309.8
MercantiIe Inv Tr . . . .926.5 8.5 1137.0 856.5
Merchants Trust . . . .381.4 5.0 431.8 347.0
Monks Inv Trust . . . .326.0 1.8 367.9 298.1
Murray Income Tru . .633.0 11.0 673.0 568.0
Murray Internatio . . .902.0 24.0 991.5 818.5
PerpetuaI Income . . .254.3 1.9 276.0 234.8
PersonaI Assets T .33200.0 150.0 33725.030210.0
PoIar Cap TechnoI . .343.0 8.9 391.2 299.5
RIT CapitaI Partn . . .1320.0 14.0 1334.0 1130.0
Scottish Inv Trus . . . .455.0 8.0 524.0 417.0
Scottish Mortgage . .661.5 9.0 781.0 586.5
SVG CapitaI . . . . . . . .210.0 0.1 279.8 187.9
TempIe Bar Inv Tr . . .878.0 14.5 952.0 791.0
TempIeton Emergin .542.0 8.0 689.5 497.0
TR Property Inv T . . .169.3 2.8 206.1 150.0
TR Property Inv T . . . .75.2 0.6 94.0 69.5
Witan Inv Trust . . . . .448.0 2.5 533.0 401.5
3i Group . . . . . . . . . . .208.4 5.9 340.0 184.1
3i Infrastructure . . . . .119.7 0.0 125.2 112.9
Aberdeen Asset Ma .188.1 -0.9 240.0 167.8
Ashmore Group . . . .326.7 0.7 420.0 301.5
Brewin DoIphin Ho . .119.5 0.1 185.4 113.7
CameIIia . . . . . . . . . .8800.0-150.510950.08800.0
CharIes TayIor Co . . .138.5 -1.0 193.0 122.0
City of London Gr . . . .69.5 1.3 93.6 68.3
City of London In . . .330.5 7.5 461.5 321.3
CIose Brothers Gr . . .717.0 1.0 888.5 656.5
CoIIins Stewart H . . . .59.0 -2.3 90.8 59.0
EvoIution Group . . . . .80.5 -1.0 94.0 62.3
F&C Asset Managem .62.4 0.2 92.9 56.1
Hargreaves Lansdo .509.5 10.2 646.5 402.5
HeIphire Group . . . . . . .3.0 -0.1 32.5 2.2
Henderson Group . . .122.4 3.8 173.1 95.1
Highway CapitaI . . . . .14.5 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .427.2 -1.6 570.5 383.7
IG Group HoIdings . .475.9 0.9 551.5 393.6
Intermediate Capi . . .244.3 10.3 360.3 197.9
InternationaI Per . . . .261.0 13.9 388.8 196.5
InternationaI Pub . . . .115.8 0.4 118.3 108.6
Investec . . . . . . . . . . .375.8 2.3 538.0 331.8
IP Group . . . . . . . . . . . .67.6 0.6 68.3 27.9
Jupiter Fund Mana . .226.1 4.9 337.3 184.9
Liontrust Asset M . . . .58.8 0.8 94.3 57.9
LMS CapitaI . . . . . . . . .61.5 0.8 64.8 44.8
London Finance & . . .22.5 0.0 23.5 16.5
London Stock Exch .902.0 20.0 1076.0 705.0
Lonrho . . . . . . . . . . . . .14.3 0.0 19.8 12.5
Man Group . . . . . . . . .156.6 1.1 311.0 150.0
Paragon Group Of . .161.1 2.1 206.1 134.6
Provident Financi . .1093.0 6.0 1124.0 728.5
Rathbone Brothers .1056.0 16.0 1257.0 866.5
Record . . . . . . . . . . . . .23.8 0.0 45.5 20.3
RSM Tenon Group . . .24.0 -0.3 66.3 20.3
Schroders . . . . . . . .1350.0 3.0 1922.0 1183.0
Schroders (Non-Vo .1163.0 13.0 1554.0 970.0
TuIIett Prebon . . . . . .381.2 1.2 428.6 327.8
WaIker Crips Grou . . .46.0 0.0 51.5 45.0
BT Group . . . . . . . . . .183.6 1.6 204.1 152.1
CabIe & WireIess . . . .37.1 1.1 54.1 31.3
CabIe & WireIess . . . .27.6 0.8 76.9 26.3
COLT Group SA . . . . .95.1 -0.6 156.2 91.6
KCOM Group . . . . . . . .72.5 2.5 84.0 47.5
TaIkTaIk TeIecom . . .135.2 1.0 168.3 119.8
TeIecomPIus . . . . . . .728.0 8.0 740.0 379.8
Booker Group . . . . . . .79.2 1.0 80.0 53.4
Greggs . . . . . . . . . . . .508.0 6.0 550.5 429.1
Morrison (Wm) Sup .301.8 0.7 308.3 262.7
Ocado Group . . . . . . . .89.3 0.5 285.0 84.8
Sainsbury (J) . . . . . . .306.5 0.5 391.5 263.5
Tesco . . . . . . . . . . . . .405.2 0.0 439.0 356.3
Associated Britis . .1094.0 -5.0 1182.0 940.0
Cranswick . . . . . . . . .680.0 13.5 895.0 588.5
Dairy Crest Group . . .346.9 2.1 424.9 325.0
Devro . . . . . . . . . . . . .237.0 2.7 296.9 218.0
Premier Foods . . . . . . . .4.1 -0.0 35.1 3.8
Tate & LyIe . . . . . . . . .653.5 3.5 656.5 490.2
UniIever . . . . . . . . . .2101.0 10.0 2109.0 1777.0
Mondi . . . . . . . . . . . . .472.6 19.4 664.0 448.4
Centrica . . . . . . . . . . .308.8 5.7 345.8 282.6
InternationaI Pow . . .329.3 -5.6 448.6 279.4
NationaI Grid . . . . . . .629.5 -6.5 649.5 530.0
Pennon Group . . . . . .699.0 0.5 737.5 584.5
Severn Trent . . . . . .1525.0 -10.0 1571.0 1359.0
United UtiIities . . . . .616.0 -3.5 631.5 543.5
Cookson Group . . . . .516.0 28.9 724.5 395.8
DS Smith . . . . . . . . . .210.6 13.3 266.2 164.4
Rexam . . . . . . . . . . . .338.6 2.3 400.0 299.8
Price Chg High Low
BerkeIey Group Ho .1228.0 38.0 1299.0 789.5
Bovis Homes Group .475.0 16.2 477.2 326.5
Persimmon . . . . . . . .503.0 16.6 511.5 336.5
Reckitt Benckiser . .3446.0 -3.0 3648.0 3015.0
Redrow . . . . . . . . . . . .123.0 4.3 139.0 98.4
TayIor Wimpey . . . . . . .37.3 0.9 43.3 22.3
Bodycote . . . . . . . . . .282.3 12.3 397.7 225.6
Charter Internati . . . .860.0 4.0 876.5 538.5
Fenner . . . . . . . . . . . .338.0 8.4 422.5 259.3
IMI . . . . . . . . . . . . . . . .799.0 20.0 1119.0 636.5
MeIrose . . . . . . . . . . .327.5 5.5 365.4 265.7
Northgate . . . . . . . . . .248.8 7.6 346.7 202.0
Rotork . . . . . . . . . . .1660.0 63.0 1858.0 1501.0
Spirax-Sarco Engi . .1861.0 45.0 2063.0 1649.0
Weir Group . . . . . . .1843.0 70.0 2218.0 1375.0
Ferrexpo . . . . . . . . . . .310.3 16.0 499.0 238.7
TaIvivaara Mining . . .230.9 20.5 622.0 205.0
BBAAviation . . . . . . .182.7 0.8 240.8 156.0
Stobart Group Ltd . . .126.0 1.0 163.6 122.0
AdmiraI Group . . . . .1219.0 -3.0 1754.0 1206.0
AmIin . . . . . . . . . . . . .305.0 3.4 427.0 270.6
Huntsworth . . . . . . . . .57.5 -1.1 85.0 55.3
Informa . . . . . . . . . . . .353.9 8.9 461.1 313.9
ITE Group . . . . . . . . . .177.0 2.0 258.2 157.7
ITV . . . . . . . . . . . . . . . . .62.3 2.3 93.5 51.7
Johnston Press . . . . . . .4.4 0.2 13.5 4.1
MecomGroup . . . . . .151.5 0.8 310.0 134.5
Moneysupermarket. .103.9 6.0 120.4 75.7
Pearson . . . . . . . . . .1174.0 22.0 1207.0 926.0
PerformGroup . . . . .204.0 0.1 234.5 150.0
Reed EIsevier . . . . . .542.0 7.5 590.5 461.3
Rightmove . . . . . . . .1351.0 53.0 1354.0 736.5
STV Group . . . . . . . . .110.0 7.0 168.0 90.3
Tarsus Group . . . . . .132.5 -0.5 165.0 114.0
Trinity Mirror . . . . . . . .45.5 -1.5 108.0 37.5
UBM . . . . . . . . . . . . . .518.5 15.0 725.0 416.0
UTV Media . . . . . . . . .121.0 -2.1 150.0 101.0
WiImington Group . . .87.5 -0.5 183.0 82.5
WPP . . . . . . . . . . . . . .647.5 15.5 846.5 578.0
YeII Group . . . . . . . . . . .3.7 0.1 16.1 3.6
African Barrick G . . .527.0 -4.0 618.5 393.5
AIIied GoId Minin . . .148.3 1.2 281.3 34.4
AngIo American . . .2315.5 95.5 3437.0 2138.5
AngIo Pacific Gro . . .259.9 4.5 369.3 237.9
Antofagasta . . . . . . .1178.0 82.0 1634.0 900.5
Aquarius PIatinum . .177.2 6.5 419.0 163.1
BeazIey . . . . . . . . . . . .127.0 3.0 139.2 109.6
CatIin Group Ltd. . . .395.0 5.1 421.4 331.5
Hiscox Ltd. . . . . . . . . .380.7 0.7 424.7 340.5
Jardine LIoyd Tho . . .717.5 16.5 727.0 571.5
Lancashire HoIdin . . .747.5 4.0 747.5 529.0
RSA Insurance Gro . .112.8 0.1 143.5 106.0
Aviva . . . . . . . . . . . . . .346.7 7.4 477.9 275.3
LegaI & GeneraI G . . .106.3 2.3 123.8 89.8
OId MutuaI . . . . . . . . .110.6 2.2 144.8 98.1
Phoenix Group HoI . .519.0 14.0 688.0 451.1
PrudentiaI . . . . . . . . .658.5 25.5 777.0 509.0
ResoIution Ltd. . . . . .277.2 0.1 316.1 211.3
St James's PIace . . . .358.5 8.6 376.0 236.2
Standard Life . . . . . . .215.6 5.0 244.7 172.0
4Imprint Group . . . . .220.0 -10.0 295.0 200.0
Aegis Group . . . . . . .136.0 5.7 158.5 115.7
BIoomsbury PubIis . . .99.5 0.5 138.0 95.1
British Sky Broad . . .735.0 2.5 850.0 618.5
Centaur Media . . . . . . .39.0 0.0 73.0 36.0
Chime Communicati .197.5 1.5 298.5 173.0
Creston . . . . . . . . . . . .84.3 0.0 121.0 72.0
DaiIy MaiI and Ge . . .418.0 17.2 594.5 343.4
Euromoney Institu . .618.0 -4.0 736.0 522.5
Future . . . . . . . . . . . . . .11.0 0.9 30.0 9.8
Haynes PubIishing . .215.0 0.0 257.0 203.5
BHP BiIIiton . . . . . . .1996.0 99.0 2631.5 1667.0
Centamin Egypt Lt . .106.5 3.3 197.1 89.7
Eurasian NaturaI . . .684.5 26.5 1125.0 522.0
FresniIIo . . . . . . . . . .1556.0 51.0 2150.0 1247.0
GemDiamonds Ltd. .211.5 10.2 306.0 179.8
GIencore Internat . . .418.9 15.4 531.1 348.0
HochschiId Mining . .452.4 3.4 680.0 397.0
Kazakhmys . . . . . . . .925.0 68.5 1671.0 730.0
Kenmare Resources . .40.0 2.7 59.9 18.9
Lonmin . . . . . . . . . . .1112.0 79.0 1983.0 974.5
New WorId Resourc .525.0 30.0 1060.0 410.5
PetropavIovsk . . . . . .767.0 39.5 1165.0 543.5
RandgoId Resource 6435.0 155.0 7215.0 4425.0
Rio Tinto . . . . . . . . .3373.5 222.5 4712.0 2712.5
Vedanta Resources 1229.0 62.0 2559.0 948.0
Xstrata . . . . . . . . . . .1016.0 64.5 1550.0 764.0
Inmarsat . . . . . . . . . . .488.1 7.9 719.5 389.7
Vodafone Group . . . .175.9 0.3 182.8 155.1
Genesis Emerging . .460.8 10.8 568.0 430.0
Afren . . . . . . . . . . . . . . .92.0 4.5 171.2 73.6
BG Group . . . . . . . . .1327.0 -27.5 1564.5 1144.0
BP . . . . . . . . . . . . . . . .438.1 -1.3 509.0 363.2
Cairn Energy . . . . . . .299.5 3.7 469.7 261.4
EnQuest . . . . . . . . . . .106.0 3.0 158.5 86.6
Essar Energy . . . . . .290.5 3.1 589.5 235.1
ExiIIon Energy . . . . . .268.0 4.0 469.7 184.2
Heritage OiI . . . . . . . .237.7 -0.7 486.0 190.0
Ophir Energy . . . . . . .248.3 8.3 299.0 184.5
Premier OiI . . . . . . . . .368.1 -1.1 535.0 310.0
RoyaI Dutch SheII . .2242.5 -7.0 2326.5 1883.5
RoyaI Dutch SheII . .2303.0 -11.0 2336.0 1890.5
SaIamander Energy .194.0 -4.3 317.6 182.3
Soco Internationa . . .334.9 3.2 400.0 279.8
TuIIow OiI . . . . . . . . .1413.0 -10.0 1493.0 945.5
Amec . . . . . . . . . . . . .908.0 -1.0 1251.0 740.5
Hunting . . . . . . . . . . .678.0 4.5 817.0 530.0
Kentz Corporation . .500.0 13.7 503.5 275.5
LampreII . . . . . . . . . . .227.0 1.2 395.2 220.7
Petrofac Ltd. . . . . . .1396.0 24.0 1685.0 1108.0
Wood Group (John) .595.5 10.0 715.8 432.5
Burberry Group . . . .1246.0 -1.0 1600.0 994.0
PZ Cussons . . . . . . . .356.9 1.9 409.0 320.5
Supergroup . . . . . . . .649.0 -6.0 1820.0 646.5
AstraZeneca . . . . . .3046.0 5.5 3304.0 2543.5
BTG . . . . . . . . . . . . . .272.9 2.9 309.7 210.1
Genus . . . . . . . . . . . . .995.0 6.0 1111.0 800.0
GIaxoSmithKIine . . .1391.5 -9.0 1403.0 1127.5
Hikma Pharmaceuti .639.0 11.0 900.0 555.5
Shire PIc . . . . . . . . . .1983.0 -19.0 2136.0 1454.0
CapitaI & Countie . . .174.0 2.9 203.7 142.5
Daejan HoIdings . . .2740.0 40.0 2954.0 2282.0
F&C CommerciaI Pr .100.0 1.3 108.0 88.0
Grainger . . . . . . . . . . . .86.3 0.8 133.2 77.3
London & Stamford .118.0 -0.2 140.0 112.9
SaviIIs . . . . . . . . . . . . .280.0 3.8 427.1 256.2
UK CommerciaI Pro . .77.8 0.1 85.5 70.4
Unite Group . . . . . . . .178.0 3.0 224.1 152.9
Big YeIIow Group . . .260.3 1.2 352.2 234.2
British Land Co . . . . .520.5 8.5 629.5 452.0
CapitaI Shopping . . .339.5 7.1 424.8 296.4
Derwent London . . .1647.0 0.0 1880.0 1400.0
Great PortIand Es . . .364.6 2.7 445.0 317.4
Hammerson . . . . . . . .409.3 7.5 490.9 353.0
Hansteen HoIdings . . .77.3 0.3 89.5 70.0
Land Securities G . . .692.5 20.5 885.0 616.0
SEGRO . . . . . . . . . . . .246.1 6.6 331.3 210.1
Shaftesbury . . . . . . . .496.8 -3.2 539.0 431.7
Aveva Group . . . . . .1533.0 49.0 1799.0 1298.0
Computacenter . . . . .375.4 0.4 490.0 354.8
Fidessa Group . . . . .1661.0 -24.0 2109.0 1409.0
Invensys . . . . . . . . . . .214.8 3.8 364.3 199.6
Logica . . . . . . . . . . . . .93.4 4.2 147.2 73.9
Micro Focus Inter . . .338.2 0.6 426.2 239.4
Misys . . . . . . . . . . . . .268.1 10.6 420.2 214.9
Sage Group . . . . . . . .278.6 0.1 302.0 231.7
SDL . . . . . . . . . . . . . . .660.5 2.5 711.5 555.0
TeIecity Group . . . . . .597.0 10.0 601.0 430.0
Aggreko . . . . . . . . . .1714.0 4.0 2034.0 1394.5
Ashtead Group . . . . .164.5 7.5 207.9 99.4
Atkins (WS) . . . . . . . .550.5 27.0 820.0 490.2
Babcock Internati . . .696.0 9.0 733.0 513.5
Berendsen . . . . . . . . .440.3 0.6 568.0 391.3
BunzI . . . . . . . . . . . . .811.5 -3.5 827.5 676.5
Cape . . . . . . . . . . . . . .475.0 10.3 591.5 358.3
Capita Group . . . . . . .714.0 6.0 786.5 635.5
CariIIion . . . . . . . . . . .345.9 7.2 403.2 298.8
De La Rue . . . . . . . . .838.0 -4.5 854.5 549.5
DipIoma . . . . . . . . . . .308.4 8.2 414.3 258.0
EIectrocomponents .219.1 11.2 294.9 182.2
Experian . . . . . . . . . . .785.5 12.0 833.5 665.0
FiItrona PLC . . . . . . . .355.8 3.2 385.5 227.5
G4S . . . . . . . . . . . . . . .243.5 1.2 291.0 219.9
Hays . . . . . . . . . . . . . . .78.7 1.7 133.6 66.6
Homeserve . . . . . . . .470.6 0.5 532.0 408.0
Howden Joinery Gr . .117.3 3.0 127.5 75.6
Interserve . . . . . . . . . .314.9 3.4 341.3 183.5
Intertek Group . . . . .1976.0 3.0 2148.0 1715.0
MichaeI Page Inte . . .394.5 15.9 567.0 338.7
Mitie Group . . . . . . . .243.8 1.2 244.4 194.1
Premier FarneII . . . . .178.6 7.6 308.8 144.5
Regus . . . . . . . . . . . . . .77.7 3.7 119.0 64.0
RentokiI InitiaI . . . . . . .71.9 2.4 104.9 64.8
RPS Group . . . . . . . . .173.6 2.2 253.0 156.6
Serco Group . . . . . . .523.0 10.0 633.0 490.9
Shanks Group . . . . . .109.8 2.3 130.9 103.0
SIG . . . . . . . . . . . . . . . .99.9 0.3 153.5 83.8
SThree . . . . . . . . . . . .270.2 2.2 447.6 213.2
Travis Perkins . . . . . .879.5 33.0 1127.0 715.0
WoIseIey . . . . . . . . .1840.0 44.0 2261.0 1404.0
ARM HoIdings . . . . . .575.5 8.0 651.0 338.9
CSR . . . . . . . . . . . . . .186.0 2.4 447.0 179.5
Imagination Techn . .459.0 -3.1 502.0 296.9
Pace . . . . . . . . . . . . . . .77.5 0.1 231.8 75.6
Spirent Communica .129.0 3.4 160.3 109.5
British American . .2852.5 -27.5 2896.0 2282.5
ImperiaI Tobacco . .2234.0 -14.0 2256.0 1784.0
Betfair Group . . . . . . .780.0 -2.5 1550.0 567.0
Bwin.party Digita . . . .111.2 6.2 280.9 100.6
CarnivaI . . . . . . . . . .2313.0 57.0 3153.0 1742.0
Compass Group . . . .565.5 4.0 612.0 511.5
Domino's Pizza UK . .450.0 10.0 586.0 377.0
easyJet . . . . . . . . . . . .360.8 9.3 479.0 301.0
FirstGroup . . . . . . . . .332.0 2.2 412.6 301.8
Go-Ahead Group . . .1409.0 11.0 1598.0 1203.0
Greene King . . . . . . .451.7 1.8 518.0 410.0
InterContinentaI . . .1124.0 9.0 1435.0 955.0
InternationaI Con . . .164.7 -0.2 305.0 141.6
JD Wetherspoon . . . .444.2 11.2 468.3 380.5
Ladbrokes . . . . . . . . .139.3 2.7 155.3 114.0
Marston's . . . . . . . . . . .98.1 1.6 117.1 84.6
MiIIennium& Copt . .434.2 10.8 600.5 375.6
MitcheIIs & ButIe . . . .240.6 3.6 361.0 216.4
NationaI Express . . .230.5 5.2 270.2 219.6
Rank Group . . . . . . . .127.4 1.3 153.7 109.5
Restaurant Group . . .289.9 3.0 335.0 254.9
Stagecoach Group . .248.9 3.2 272.4 200.0
Thomas Cook Group .56.6 5.1 204.8 33.7
TUI TraveI . . . . . . . . . .172.6 8.6 271.9 137.2
Whitbread . . . . . . . .1696.0 25.0 1887.0 1409.0
WiIIiamHiII . . . . . . . . .228.1 1.1 244.1 155.5
Abcam . . . . . . . . . . . .338.8 6.8 460.0 307.0
AIbemarIe & Bond . .315.0 -3.0 400.1 272.0
Amerisur Resource . .13.0 0.3 29.0 9.5
Andor TechnoIogy . .500.0 -5.0 685.0 370.0
ArchipeIago Resou . . .65.3 1.3 79.0 38.8
ASOS . . . . . . . . . . . .1470.0 20.0 2468.0 1234.0
AureIian OiI & Ga . . . .17.5 -0.3 92.0 16.0
Avanti Communicat .317.0 10.0 735.0 248.5
Avocet Mining . . . . . .235.5 -2.5 286.8 173.8
BIinkx . . . . . . . . . . . . .152.0 4.0 158.0 70.5
Borders & Souther . . .48.0 -2.0 73.0 43.5
BowLeven . . . . . . . . .104.3 -0.8 398.0 74.5
Brooks MacdonaId 1280.0 17.5 1372.5 940.0
Cove Energy . . . . . . . .86.0 -2.5 112.8 61.0
Daisy Group . . . . . . .109.8 -0.8 127.0 88.0
EMIS Group . . . . . . . .547.5 15.0 580.0 400.5
Encore OiI . . . . . . . . . .77.5 0.0 151.5 40.8
Faroe PetroIeum . . . .158.0 2.3 218.3 130.0
GuIfsands PetroIe . . .187.0 2.3 401.5 142.5
GWPharmaceuticaI . .93.0 2.4 130.0 83.0
H&T Group . . . . . . . . .320.0 -7.5 395.0 277.0
Hamworthy . . . . . . . .512.0 -3.0 705.0 373.8
Hargreaves Servic .1050.0 -2.0 1080.0 683.0
HeaIthcare Locums . . . .6.1 -0.2 6.8 6.1
Immunodiagnostic . .862.0 -13.0 1218.0 768.5
ImpeIIamGroup . . . .320.0 -10.0 387.5 177.5
James HaIstead . . . . .467.5 -2.5 495.0 345.5
KaIahari MineraIs . . .241.0 8.0 301.0 168.0
London Mining . . . . .321.3 -7.8 436.5 283.0
Lupus CapitaI . . . . . .102.3 1.1 150.0 86.0
M. P. Evans Group . .400.0 -3.0 500.5 371.0
Majestic Wine . . . . . .417.5 -4.5 510.0 352.0
May Gurney Integr . .294.0 5.8 300.0 211.0
Monitise . . . . . . . . . . . .35.0 0.0 39.0 18.5
MuIberry Group . . . .1418.0 18.0 1920.0 530.0
Nanoco Group . . . . . . .41.3 1.3 115.8 40.0
NauticaI PetroIeu . . .312.5 -0.5 547.0 223.5
NichoIs . . . . . . . . . . . .534.8 -7.8 579.0 410.0
Numis Corporation . . .92.5 0.0 137.8 89.0
Pan African Resou . . .12.5 0.5 14.5 9.4
Patagonia GoId . . . . . .56.3 2.3 70.0 20.3
Prezzo . . . . . . . . . . . . .54.4 0.6 71.5 53.3
Pursuit Dynamics . . .209.0 8.0 700.0 160.5
Rockhopper ExpIor .202.0 -2.5 386.0 141.0
RWS HoIdings . . . . . .426.0 0.0 479.8 266.5
Songbird Estates . . .122.0 3.8 160.3 110.3
VaIiant PetroIeum . . .472.8 -9.3 750.0 435.0
Young & Co's Brew . .622.5 -20.0 712.0 530.0
Kesa EIectricaIs . . . .110.6 16.9
Thomas Cook Group .56.6 9.9
TaIvivaara Mining . . .230.9 9.7
Kazakhmys . . . . . . . .925.0 8.0
Lonmin . . . . . . . . . . .1112.0 7.7
Antofagasta . . . . . . .1178.0 7.5
Kenmare Resources . .40.0 7.2
Rio Tinto . . . . . . . . .3373.5 7.1
Xstrata . . . . . . . . . . .1016.0 6.8
DS Smith . . . . . . . . . .210.6 6.7
SaIamander Energy .194.0 -2.2
BG Group . . . . . . . . .1327.0 -2.0
InternationaI Powe . .329.3 -1.7
Fidessa Group . . . . .1661.0 -1.4
Drax Group . . . . . . . .530.0 -1.2
NationaI Grid . . . . . . .629.5 -1.0
Shire PIc . . . . . . . . .1983.0 -1.0
British American T .2852.5 -1.0
Supergroup . . . . . . . .649.0 -0.9
African Barrick Go . .527.0 -0.8
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
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ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
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FIXED LINE TELECOMS
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FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT & S.
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INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
SOFTWARE & COMPUTER SERV.
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AUTOMOBILES & PARTS
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GENERAL INDUSTRIALS
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MINING
NONEQUITY INVESTM. COMM.
Tsy 3.250 11 . . . . .100.18 -0.14 103.0 100.2
Tsy 9.000 12 . . . .106.54 0.00 114.5 105.8
Tsy 5.000 12 . . . .101.62 -0.05 106.0 101.6
Tsy 5.250 12 . . . .102.89 -0.02 107.4 102.9
Tsy 4.500 13 . . . .105.31 -0.04 108.7 105.3
Tsy 2.500 13 . . . .284.45 -0.10 287.7 277.6
Tsy 8.000 13 . . . . .114.06 -0.05 120.5 114.1
Tsy 5.000 14 . . . . .111.67 -0.06 113.9 109.2
Tsy 4.750 15 . . . . .113.66 -0.10 114.8 108.6
Tsy 8.000 15 . . . .127.34 -0.10 131.0 123.7
Tsy 7.750 15 . . . .101.02 -0.78 108.7 101.0
Tsy 4.000 16 . . . . .112.08 -0.08 113.4 104.9
Tsy 2.500 16 . . . .339.06 -0.22 342.2 310.2
Tsy 8.750 17 . . . .138.62 -0.41 141.9 132.9
Tsy 12.000 17 . . .123.83 0.00 133.8 122.5
Tsy 1.250 17 . . . . .113.65 -0.26 115.3 106.7
Tsy 5.000 18 . . . . .118.99 -0.11 121.0 109.7
Tsy 4.500 19 . . . . .116.42 -0.11 118.8 105.4
Tsy 3.750 19 . . . . .111.02 -0.11 113.5 99.4
Tsy 2.500 20 . . . .350.02 -0.31 355.6 312.4
Tsy 4.750 20 . . . . .118.56 -0.12 121.4 106.6
Tsy 8.000 21 . . . .146.98 -0.15 151.8 133.8
Tsy 1.875 22 . . . .121.65 -0.55 125.4 111.3
Tsy 4.000 22 . . . . .112.79 -0.23 115.6 99.0
Tsy 2.500 24 . . . .309.80 -0.74 320.1 273.5
Tsy 5.000 25 . . . .123.74 -0.30 126.9 107.4
Tsy 4.250 27 . . . . .114.76 -0.49 118.1 97.9
Tsy 1.250 27 . . . . .114.90 -1.07 121.0 104.6
Tsy 6.000 28 . . . .138.84 -0.49 142.9 119.5
Tsy 4.750 30 . . . .121.86 -0.54 125.6 103.0
Tsy 4.125 30 . . . .291.90 -1.08 305.4 261.2
Tsy 4.250 32 . . . . .113.96 -0.59 117.9 96.0
Tsy 4.250 36 . . . . .113.86 -0.65 117.6 95.0
Tsy 4.750 38 . . . .122.96 -0.69 126.9 102.8
Tsy 4.500 42 . . . . .119.32 -0.76 123.0 98.9
% %
ALTERNATIVE ENERGY
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Wealth Management
BALANCE RISKS
TO OUTPERFORM
BY REPUTATION
JAKE ALGAR
CITY MANAGER, ZURICH INSURANCE
W
HAT a summer of sport weve seen. And with
the handover of the Rugby World Cup baton on
to England for 2015, the UK hosting of the 2012
Olympics, and not forgetting the
Commonwealth Games in Glasgow in 2014, there hasnt
been a better time to be involved the sports, leisure and
entertainment (SLE) world. But are we, as a nation, still in
love with our own pastimes? Although UK households con-
tinue to spend a large proportion of their income on leisure
activities (estimated to be in the region of around 21 per
cent of total income), recent data suggests that the cur-
rent financial environment is causing consumers to be pick-
ier with how they spend that discretionary income.
When combined with other pressures such as the
smoking ban, increasing competition caused by relatively
low barriers to entry into certain areas of the sector, and
what some refer to as the employee paradox the
expectation that relatively low paid individuals have to
provide a first class customer experience many busi-
nesses in the sector are finding the current trading envi-
ronment very challenging.
Such conditions often lead to a reduced focus on the
management of risk and reduced spending on health and
safety processes and training, as companies strive to
make money on core activities. Unfortunately the result-
ant increase in insurance claims, and the risk this presents
to both brand and reputation mean that such spending
cutbacks often equate to a false economy.
A disruption to a business will impact on the customer
experience and their perception of a business or venue
will certainly be altered, leading to a loss of reputation
that could take years to recover from, if at all. So the
impact of disruption is not a one off but can become an
ongoing issue that hinders the business for years to come.
As Warren Buffett famously said: It takes 20 years to
build a reputation and five minutes to ruin it. If you think
about that, youll do things differently.
In addition to reputation, the continuing hangover
from such business interruption will impede the day-to-
day running and profitability of any business, especially if
the recovery is long and drawn out. To avoid such issues it
is critical that companies in the leisure sector develop a
robust risk management policy, integrating such areas as
business continuity planning, reputational risk protection,
claims defensibility and bespoke insurance cover.
So, a great opportunity for all in the sector, but some
areas to be aware of, and stay on top of. Success will
breed success.
For more information contact your broker or visit
www.zurich.co.uk/expertise
Football clubs on side in
support of the economy
Behind the beautiful game is a story of success, writes Philip Salter
U
NTOLD ink is expended on
the trials and tribulations of
Englands football clubs.
Public houses would be
thrown into silence without our
national pastime and fervent wor-
shippers spend money hand over
fist to prove their allegiance to their
club. Yet this national obsession is
all too rarely thought about as the
economic powerhouse it is.
Football is the biggest sport in
the world and the FA Premier
League is the biggest league in the
world. Deloittes Alex Byars of its
sports business group notes while
NFL revenues are around $8bn
(5bn), we estimate that the
European football market size, in
terms of total revenue, was 16.3bn
(14.1bn) in 2010. Within this fig-
ure, Deloitte estimates the big five
European leagues (England,
Germany, Spain, Italy and France)
contributed 8.4bn with the
English Premier League (2.5bn) the
largest league in revenue terms,
well ahead of the German
Bundesliga in second place (1.7bn).
Attendances at Premier League
matches in 2010/11 were 13.4m and
at Football League matches (the
Championship, League 1 and
League 2) 16.1m. Pete Hackleton,
senior tax manager at Saffery
Champness says: It should not be
forgotten that the Championship is
the fourth best attended league in
Europe, outstripping the top
leagues in both Italy and France.
Byars says once you include figures
from outside the top four divisions,
total attendances at English football
matches in 2010/11 were over 30m
in total. The next best-attended
sport in the UK is horse racing, with
total attendances of around 6m per
year.
According to Deloittes research,
Spanish clubs Real Madrid and FC
Barcelona lead European clubs in
terms of revenues, 438.6m and
398.1 respectively Manchester
United (349.8), Arsenal (274.1),
Chelsea (255.9), Liverpool (225.3),
Manchester City (152.8),
Tottenham Hotspur (146.3) and
Aston Villa (109.4) claim third,
fifth, sixth, eighth, eleventh,
twelfth and twentieth spots, in
Deloittes European revenue table.
Deloitte concludes It is testament
to the ability of English clubs to cap-
italise on all revenue streams that
they occupy seven Money League
positions, the most of any individ-
ual country including six of the
top 12 positions.
In sport, timing is everything.
The excitement of English football
generally seems to appeal to the
overseas market, says Hackleton,
the timings are perfect for the key
Asian market 3pm on Saturday
and 4pm on Sunday kick-offs are
screened in the evening in Asia
whereas evening kick offs in Spain
and Italy are after midnight in such
markets.
MONEY, MONEY, MONEY
Top level football has been driven
principally by broadcasting rev-
enue. Deloittes first Money League
in 1996/97 reported that the then
leaders Manchester United generat-
ed 134m in revenue, of which
19m (14 per cent) related to broad-
casting. By 2009/10, the clubs total
revenue had grown to almost three
times this level, at 350m, but
broadcasting revenue, at 128m,
has increased to nearly seven times
its 1996/97 level and comprises 37
per cent of the total. Because broad-
casting rights are distributed on a
collective basis, the top English
clubs lag behind their top Spanish
competitors, which negotiate on a
club-by-club basis. Liverpools man-
aging director Ian Ayre, wants
English clubs to copy the Spanish
model but this is extremely
unlikely to pass muster, as it would
English clubs are
held to be among
the worlds best
Picture: REUTERS
need 14 of the 20 Premier League
clubs to jump on board. Also, even
with the collective agreement,
English clubs can compete, as David
Gill, Manchester Uniteds chief exec-
utive, argued in response to Ayre.
Debt understandably concerns
many football fans. People general-
ly dont mind if most companies go
to the wall through overleverage,
but football clubs are sacrosanct.
However, this doesnt mean that all
debt in football is bad. Karish
Andrews, senior associate in the
corporate and sports law group at
Lewis Silkin says: There is absolute-
ly nothing wrong with clubs having
significant debt, provided that it is
serviceable. He cites the example of
Arsenal, which took on significant
debt to build the Emirates stadium.
Andrews says no one would argue
that has not been a financial suc-
cess the increased revenue has
allowed Arsenal to pay off its debts
and continue to compete at the
top. He is more disturbed by the
growing number of clubs that are
reliant on a wealthy benefactor to
keep the club solvent, saying it
cannot be good for football that a
club would be insolvent as soon as
its owner decides to call in a loan.
Many worry about the amount of
money players earn, but this is sim-
ply a reflection of the amount of
money there is in the game.
Hackleton believes the oft mooted
salary cap to control ever increasing
wage levels in English football is
impractical, unless it could be
implemented on a global basis. He
says if English clubs limit the
amount they pay out on salaries,
then the top players will simply go
to Spain or Italy this will devalue
the league, and reduce the value of
key broadcast rights.
English football is certainly
strong on paper, but as always, in
this funny old game its all to play
for. Dont bury your head in the scrum Picture: ACTION
30
Business Features
In association with
Zurich Insurance plc
W
INTER may have been slow to
arrive. But when the clocks go
back, theres no denying that
its here. This Sunday, British
Summer Time comes to an end, which
means that well soon be going to work
and coming back home in the dark. This
may make some of us feel that wed
rather stay in, sleep all day, and eat noth-
ing but chocolate and industrial quanti-
ties of pasta. If you are feeling this way,
you may be suffering symptoms of win-
ter blues, a less acute version of Seasonal
Affective Disorder (SAD). You certainly
arent alone: winter blues affects 17 per
cent of the UKs population, and though
the average age of first-time sufferers is
18-30, you can even experience the onset
of winter blues in your forties. Here is a
breakdown of what the winter blues are,
and how to alleviate some of the symp-
toms.
WHAT ARE WINTER BLUES?
SAD is a depression thats brought on by
the lack of sunlight. Where SAD is a
depressive illness, winter blues is a
milder form of the disorder. Sufferers
tend to feel lethargic and sleep more.
SYMPTOMS
According to the SAD Association (SADA),
symptoms of depression and anxiety are
mild, but sufferers can still experience
tiredness, lethargy, overeating and sleep-
ing problems. Your GP can help if you
have winter blues, but if your symptoms
are severe and you think you may have
SAD, contact your GP immediately, as it
can be a seriously disabling illness.
GETTING MORE LIGHT
To help relieve the symptoms
of winter blues, you need as
much sunlight as possi-
ble. Unfortunately,
with the shortened
days in winter, this is
difficult, but you
can pick up specific
SAD lights that are
designed to provide
high levels of brightness. Its not enough
to have a bright light on your desk from
any old lamp. Specific SAD lights have up
to 20 times more lux (the measure of
intensity and brightness of visible light)
than a normal lightbulb. If youre think-
ing about buying a SAD lightbox or lamp,
make sure that it is medically certified
and specifically for the purpose. Lumie
(www.lumie.com) makes lightboxes,
lights for your desk at work, and wake-up
lights that mimic a sunrise so that you
are rising to what seems like natural
light.
MOVE AWAY FROM YOUR DESK
Sue Pavlovich, a spokesperson for SADA,
advises taking a walk in the sunshine
during your lunch break if you can.
Alternatively, if its not possible to be
away from your desk for that amount of
time, use your weekends as fully as you
can to be out of doors. Exchange the
gym for outdoor exercise where pos-
sible, so that youre regularly taking
in lots of sun. Think of fun out-
door activities such as
kite-flying on
Hampstead Heath,
or a cycle-ride along
the Embankment.
Winter blues affects
17 per cent of the UK.
Helena Lee suggests
some remedies
Above: winters on its
way when the clocks
go back.
Picture: Micha
Theiner/CITY A.M.
Below: bananas and
dates can boost sero-
tonin levels.
Dont let winters shorter
days leave you feeling blue
FIT IN
THE CITY
BY LAURA WILLIAMS
FITNESS & DIET EXPERT
Still time to
do your bit
W
E may be approaching the end of
Breast Cancer Awareness Month,
but there are still plenty of fun, fab-
ulous, fitness-based activities on
offer that will enable you to contribute to this
great cause. Ive rounded up the best of the
bunch still on offer: from pink bootcamps to
bra binning to skydives. These will give you
the ultimate feelgood factor.
Youve still got nearly a week left to par-
ticipate in Curves Gym bra recycling scheme.
For every 1kg of bras (roughly 17 bras) that
you donate, womens-only gym franchise
Curves will match the donation by giving 1
to Breast Cancer Care. Bras in tip-top condi-
tion will be sent to developing countries
(where bras are welcomed with open arms),
while those that have seen better days will
be recycled. For more info, visit curves.co.uk
If you fancy working out with a military
trainer at the same time as doing your bit
for charity, sign up for Sundays New You
Bootcamp training day in Richmond Park.
Tough, bootcamp-style exercise is all the
rage nowadays; I think the combination of
hard work and team spirit helps if you strug-
gle to push yourself and all proceeds from
Sundays bootcamp will go to breast cancer
charities. But if six hours of waist-whittling,
disease-preventing exercise still isnt enough
of a pull, maybe the prospect of a hunky
bootcamp sergeant sporting a bright pink T-
shirt will be (newyoubootcamp.com).
Entry is now open for one of the most pop-
ular breast cancer fund raising events, the
famous MoonWalk. The walks take place in
London on 12 May and in Edinburgh on 9
June (it gets full quickly, by the way). This is a
power walk (around 4/4.5 mph) of either half
marathon or marathon distance that you get
to do in your bra. So, what are the health
benefits of power walking? As long as your
heartbeat remains raised and youre pushing
forward at a brisk pace, youre going to be
giving your heart and lungs a good workout
for starters. Power walking also burns around
400 cals an hour so youll be burning off that
pre-walk brekkie too. Visit www.walkthe-
walk.org for more info.
But if walking, bootcamp-ing and bra recy-
cling dont sound high octane
enough for you, what about sky-
diving? Breakthrough Breast
Cancer organises everything
from static line jumps to solo
jumps all year round. Not just
good for an almighty adrena-
line hit, a skydives a pretty
good workout too. Not only
do you have to jump with a
pack on your back, you also
have to control, co-ordinate
and position your body cor-
rectly in mid-air. Back,
stomach, legs and shoul-
ders will all benefit from
some strength training
in advance of your jump a
great incentive to head to
the gym over the coming
months. www.break-
through.org.uk
laurawilliamsonline.co.uk
T
HERE is coffee and there are
biscuits. Theres an office with
a desk and a chair where I
may sit, undisturbed, should I
so wish, sometimes for as much as
minutes at a time. Theres a diary,
filled with names, times and places
for meetings. Meetings during which
my counsel will be sought, my advice
valued. There are folded newspapers
laid neatly on my desk. There is con-
versation during which no mention is
made of the contents of nappies. I
may even ask for something to be
done and as I have asked, so shall it
be done. My shirts are free from
drool. I marvel at this blessed old
world, newly met.
Of course, I shall tell Emma of
Ginas failure to manage my elec-
tronic in-box during my paternity
leave, stuffing me with almost 800
e-mails to be answered. And I shall
not stint on the calls to be returned,
reports to be read, clients to be
stroked and colleagues to be man-
aged. After all, its crucial to main-
tain the appearance the truth
that its here where the serious work
is done. Not on the Home Front, with
its coffee mornings, baby massage
sessions and its integrated childcare
support systems (aka Gabriella and
Maria). For this is the basis of a
modern marriage: small victories in
the war of attrition.
I wish it were that simple. The
truth is I miss them. Emma, Harry,
Gwenllian and Noel, although I can
probably live without Maria and
Gabriella, at least for today. I sit at
my desk and long to hear the twins
gurgling, or to be summoned to give
a bottle to one or to clear up the
puke of the other.
I pick up the phone to call home.
Ive been in the office for almost ten
minutes.
City Dad will be continued next
Tuesday. For previous episodes, see
www.cityam.com
CITY DAD
Lifestyle | Health
31
WHAT TO EAT
Winter blues can make you crave carbo-
hydrates such as bread, potatoes and
sweet things such as chocolate. The key
thing is to try to resist these foods, says
Pavlovich. Obviously it will be difficult
but they make you more lethargic and
sap your energy. Instead, make the effort
to eat foods that boost the feel-good hor-
mone serotonin. Charlotte Watts, nutri-
tionist and yoga teacher
(www.de-stressyourlife.com) agrees. She
suggests eating foods high in tryptophan,
the amino-acid that helps produce sero-
tonin, such as chicken, turkey, bananas,
yogurt, tofu, cottage cheese, soybeans and
tuna.
If you find yourself reaching for the bis-
cuits, arm yourself with nuts (especially
almonds), avocado on wholegrain crack-
ers, figs or dates. Try to include oily fish
such as sardines, mackerel, salmon and
trout in your diet too. The release of
healthy levels of serotonin in the brain
relies on good levels of omega 3 oils,
says Watts, so these oily fish pro-
vide vitamins and minerals
that are needed for sero-
tonin production.
For more information visit
www.sada.org.uk
Episode 33: Life after paternity leave: going back to the office
DUCK SOUP
41 Dean Street, Soho, W1D 4PY www.duck-
soupsoho.co.uk
FOOD hhh
SERVICE hhh
ATMOSPHERE hhhh
Cost per person without wine: 30
I
TS all part of the Soho experience
the perch at the bar, the swiveling
stool, getting up close and personal
with the waitress pushing past you.
Duck Soup, which is staffed by alumni of
Mark Hixs restaurant empire, follows on in
this informal tradition. The restaurant is
not a drop-in-for-a-bite-to-eat kind of place,
so dont expect petit-fours and after-dinner
espressos. This is one of many Soho no-
reservations restaurants, so if you go at
peak hours therell be a wait to get in. But
once youre in, youre in. Its a place for
those in the know, because unless you
make a specific journey to it, youll walk
right past it.
The room is narrow and deep, and the
feel of the place is crackly-record cool: Jim
Morrison on vinyl wafts through the
restaurant. The hand-written menu hangs
from a meat hook by the doorway. We stare
at it a lot, for 20 minutes in fact, because
thats how long the wait is on a Tuesday
night. Luckily Rory, the manager, is a well-
mannered host and before long we have
drinks in hand, which happens to be the
naughtily-named house beer (youll know
what I mean when you see the menu).
Natural wines line the walls, many sup-
plied by Guiseppe Mascoli, who owns
Blacks members club across the road.
Beware of the eccentric Barbera, which has
the whiff of manure a strange and not
entirely drinkable beast.
Rather than cram into the tiny tables
along the wall, we sit at the bar, back-to-
back with other couples and threesomes.
Youll find it cosy if you like being in the
thick of things, but if you like to spread out
when you eat, you may well find the bar
irritatingly cramped. That said, at Duck
Soup the tables dont offer much space
either.
I like the bar arrangement, though,
chiefly for the access you have to the head
chef, Julian Biggs, who frequently wanders
back here proffering freshly sliced bread or
a shiny slab of marinated foie gras on a
wooden board.
Now for the food. It is almost excellent
the dishes themselves are well-put-together
and original, but its the detail that lets
them down. A pot-roasted quail scattered
with girolles mushrooms and plumped
with rich stock is delicious, but wilting
leeks underneath are gritty with dirt. Thin
slices of raw cod topped with chilli and
fronds of fennel are terribly unbalanced:
salty yet bland, lacking the sour of lime
they promised. Juicy clams with Fino sher-
ry are at first sensational. There are com-
plex textures and flavours going on in the
pot, such as wonderful pasta that is
crunchy where it catches on the bottom,
also working to thicken the broth. But the
grit of sand ruins a lovely dish; occasional
sand is fine as a reminder that fresh stuff
doesnt come from a supermarket shelf,
but when the joy of clams is interrupted by
recurrent grit, its just unpleasant. The
gurnard (a wonderful fish in bouillabaise),
and clam stew topped with dollops of yel-
low aioli is a deep, rich and punchy dish
with beautiful poached scallops, but the
fish is tough, which suggests that its been
poached too long or left on too high a heat.
Despite these quibbles, Id say that Duck
Soup is great for an impromptu night out.
Go late, grab a group of friends and share
that slab of foie gras. If youre into the bus-
tle of Soho bar-restaurants such as
Barrafina and Polpo, then this is for you.
Left: Julian Biggs,
Duck Soups head
chef. Above: a plate of
langoustines
If you dont mind a
squeeze, Dean Streets
newcomer is good fun
I
N the North of Italy in the
Veneto, theres a wine called
Valpolicella. Perhaps you know it
as a light, cheerful, quaffing sort
of wine with some bright cherry fruit
something to drink on holiday but
nothing, frankly, to write home about.
In fact, like many famous Italian
wine regions, there has been an
explosion of quality in Valpolicella
and for summer drinking, they are
well worth seeking out. But what
were talking about today is a pecu-
liar regional specialty: Amarone.
Amarone, or Amarone della
Valpolicella (to mention its rather glo-
rious full name), is a super-charged
version of regular Valpolicella and
made from the same grape varieties.
For Valpolicella, the Corvina,
Rondinella and Molinara grapes are
vinified in a conventional way, where-
as the grapes for Amarone are picked
in whole bunches and laid (traditional-
ly on straw mats) in a special drying
room (the attic originally) and the
grapes are dried for several months.
The process is known as
Appassimento and, in the same way
that boiling a sauce concentrates it, as
the grapes dry, the water content
goes down and the juice of the grapes
becomes more concentrated.
When all the grape sugar has
turned to alcohol and fermented to
dryness, an Amarone can have as
much as 16 per cent alcohol whereas
Valpolicella might have up to 12 per
cent. Its powerful stuff and theres no
mistake, all that fruit concentration
can make it seem a little sweet even
when dry. The drying process imparts
complex earthy, spicy, even chocolate,
flavours that make it a fabulous
accompaniment with venison or duck.
The story doesnt end there; many
producers add the skins from the
Amarone once the wine has been
pressed to their basic Valpolicella. This
provokes a second round of fermenta-
tion and results in whats known as a
Valpolicella Ripasso: a Valpolicella
that borrows some of Amarones
grandeur and power but at a more
reasonable price. Its well worth look-
ing out for.
Follow Andrew on Twitter @LutyensWine
Amarone: the super-charged Valpolicella
HEAD SOMMELIER AND MANAGER OF
LUTYENS RESTAURANT
ANDREW CONNOR
QUAFFERS CORNER
Lifestyle | Restaurants
All souped up in Soho: yet another
super-cool food bar enters the fray
WORDS BY
HELENA LEE
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DEATH IN PARADISE
BBC1, 9PM
Drama about a fish-out-of-water
British inspector called in to solve a
fellow DIs murder on a Caribbean
island. Ben Miller stars.
JAMES MAYS MAN LAB
BBC2, 8PM
James and Oz Clarke escape from
prison and evade a team of trackers in
their latest attempt to re-skill the
modern male.
EMMERDALE
ITV1, 7PM
Katie warns Nikhil to stay away from
Gennie, and Sandy feels hurt when
Ashley suggests moving him into a
care home.
BBC1
SKY SPORTS 1
6.30pmPremier League Review
7.30pmSoccer Special 10.30pm
Special Report 11pmA League
of Their Own 12amFootball Asia
12.30amCarling Cup Football
2amFootball Asia 2.30am
Spanish Football 4.35am-6am
Carling Cup Football
SKY SPORTS 2
7pmSpecial Report 7.30pmLive
Carling Cup Football 10pm
Golfing 11pmBadminton 12am
International One-Day Cricket
2amCycle Sports 2.30amKings
of the Extreme 3am-4amBritish
Motocross Championship
SKY SPORTS 3
6.55pmLive Spanish Football
9pmInternational One-Day
Cricket 11pmThinking Tackle
12amCycle Sports World
12.30amFIA F2 Championship
1.30amFootballs Greatest
2amThinking Tackle 3am-5am
International Bowls
BRITISH EUROSPORT
3pmLive WTA Tennis 8.45pm
WTA Tennis 10.45pmInside
WTCC 11.15pmWorld Series by
Renault 11.45pm-12amGT
Academy: Road to Dubai
ESPN
6.30pmEredivisie Review Show
7.30pmESPN Kicks: Serie A
7.45pmLive Serie A 9.45pm
ESPN Kicks: Premier League
10pmRussian Premier League
Football 10.30pmSerie A
Review11pmESPN Game of the
Week 11.30pmESPN Press Pass
12amWorld Series of Poker 1am
Fight Code 2.30amPlanet Speed
3am-6amFIA European
Rallycross 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 8pmYoung,
Foreign and Over Here 9pm
Dont Tell the Bride 10pm
EastEnders 10.30pmWilfred
11.15pmFamily Guy 12am
American Dad! 12.45amDont
Tell the Bride 1.45amWilfred
2.25amYoung, Foreign and Over
Here 3.25amSmall Teen, Bigger
World 4.25am-5.20amSex, Lies
and Gagging Orders
E4
7pmHollyoaks 7.30pmHow I
Met Your Mother 8pm
Shipwrecked 9pmSmallville
10pmThe Cleveland Show11pm
Rude Tube: Ultimate Champions
12amThe Big Bang Theory 1am
Scrubs 1.50amHow I Met Your
Mother 2.15amRude Tube:
Ultimate Champions 3.10am
Rules of Engagement 3.30am
Desperate Housewives 4.10am
Ugly Betty 4.55am-6am
Switched
HISTORY
7pmAmerica: The Story of the
US 8pmAmerican Pickers 10pm
American Restoration 11pm
Ancient Aliens 12amMud Men
1amAmerican Restoration 2am
Mega Movers 3amAmerica: The
Story of the US 4amPawn Stars
5am-6amAncient Discoveries
DISCOVERY
7pmMythbusters 9pmWheeler
Dealers 10pmDeadliest Catch
11pmIce Pilots 12amBear
Grylls 1amBattle Machine Bros
2amDeadliest Catch 3.50am
Mutant Planet 4.40amHow the
Universe Works 5.30am-6am
Destroyed in Seconds
DISCOVERY HOME &
HEALTH
7pmBirth Days 8pmIm
Pregnant and A Drug Dealer
9pmMystery Diagnosis 10pm
Kids Hospital 11pmHospital
Sydney 12amMystery Diagnosis
1amKids Hospital 2amHospital
Sydney 3amIm Pregnant and A
Drug Dealer 4amA Baby Story
5am-6amQuint-Essential
SKY1
8pmRoad Wars 9pmInside
Gatwick 10pmFILMSphere
1998. 12.05amRoad Wars
12.35am35mm1.05amRoad
Wars 1.55amUK Border Force
2.45amLost 4.20amA
Different Breed 5.10am-6am
Top Design
BBC2 ITV1 CHANNEL4 CHANNEL5
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&
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmEastEnders: BBC News
8pmHolby City
9pmCHOICE Death in
Paradise
10pmBBC News
10.25pmRegional News;
National Lottery Update
10.35pmYoung Nuns 11.20pm
Film 2011 with Claudia Winkleman
12amFILMHalf Nelson 2006.
1.40amWeatherview1.45amSign
Zone: Village SOS 2.45amHistory
Cold Case 3.45amReel History of
Britain 4.15amReel History of
Britain 4.45am-6amBBC News
6pmEggheads: Quiz show,
hosted by Jeremy Vine.
6.30pmStrictly Come Dancing
It Takes Two
7pmCelebrity Antiques Road
Trip
8pmCHOICE James Mays
Man Lab
9pmCode-Breakers: Bletchley
Parks Lost Heroes
10pmLater Live with Jools
Holland
10.30pmNewsnight: Weather
11.20pmWellington Bomber
12.20amDamages
1amBBC News 4am-6amBBC
Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmCHOICE Emmerdale:
7.30pmMayday Mayday:
8pmHigh Stakes: Big-money
game show, hosted by Jeremy
Kyle.
9pm71 Degrees North:
10pmITV News at Ten
10.30pmLondon News
10.35pmDCI Banks:
11.35pmJoanna Lumleys
Greek Odyssey:
12.30amThe Zone; ITV News
Headlines
3.05amHeist 3.50am-5.30amITV
Nightscreen
6pmThe Simpsons 6.30pm
Hollyoaks 6.55pmHippo: Wild
Feast Live 7pmChannel 4 News
7.55pmLiz Johnson Magic
Numbers 8pmGoks Clothes
Roadshow: Get the Look for Less
9pmJamies Great Britain 10pm
Shameless 11.05pmRandom Acts
11.10pmTrue Blood 12.15amUK &
Ireland Poker Tour 1.10amSailing
1.40amBeach Volleyball 2.35am
KOTV Boxing Weekly 3amBritish
GT Championship 2011 3.30am
That Paralympic Show3.55am
Channel 4 Presents Jonnie
Peacock Speed 4amParalympic
Wheelchair Rugby GB Cup 2011
4.55amThe Great North Swim
5.50am-6amGrudge Match
6pmHome and Away
6.25pmOK! TV
7pm5 News at 7
7.30pmReal Food Family Cook
Off: 5 News Update
8pmAmanda Knox: The
Untold Story: 5 News at 9
9pmCSI: Miami
10pmBig Brother
11pmFILMJerry Maguire:
Drama, with Tom Cruise. 1996.
1.25amSuperCasino: Live
interactive gaming. 4amThe Family
Recipe 4.10amMichaelas Wild
Challenge 4.30amMichaelas Wild
Challenge 4.55amAnimal Rescue
Squad 5.10amHouse Doctor
5.35am-6amHouse Doctor
1 2 3 4 5 6
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42
12
13
12
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 Plant life (5)
4 Be in direct physical
contact with (5)
7 Forces out (6)
9 Wash with a mop (4)
11 Lawful, legitimate (5)
12 Copyist (6)
14 Army division (4)
16 Disease of the skin (4)
19 Intensify (6)
21 Large group or
crowd (5)
22 Heavy open
wagon (4)
23 Establish an
association (6)
25 Relating to
punishment (5)
26 Flaming (5)
DOWN
1 Plant valued for its
fragrant tubular
owers (7)
2 Flexible twig of
a willow (5)
3 Law passed by
Parliament (3)
5 Little-known (7)
6 American raccoon (5)
8 Slim (7)
10 Be victorious (3)
13 Motionlessness (7)
15 Place where leather
is made (7)
17 Go after with the
intent to catch (5)
18 And not (3)
20 Location,
whereabouts (5)
24 Brownie (3)
P
R
E
E
L U
P
T
A
4

4

4

B S K V O D K A
A C Q U I R E R D
L U S R U D
S O A R S A R G U E
A S H E A R
P H Y S I C I A N
M M O T T W
A S K E W P A T C H
N I I P A E
G L S P E C I A L
O U N C E R N K
6 8 9 6 3 2 5 1
1 3 5 8 5 9 7 4
7 6 8 3 9 4 9 2
2 1 7 9 8
1 5 7 3 2 1 4 6
7 9 7 9 1 6 7
3 2 8 1 4 7 3 9
7 9 2 1 6
1 4 3 6 5 9 8 7
2 3 1 4 5 8 4 2
5 8 7 6 9 2 3 1
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
CURTAILED
Lifestyle | TV&Games
Sport
34
McCaw (left) and Henry (right) displayed the Webb Ellis Cup to an estimated 250,000
adoring Aucklanders a day after their tournament triumph Picture: ACTION IMAGES
BRITISH former Olympic bronze
medal-winning heptathlete Kelly
Sotherton has played down her
London 2012 chances after announc-
ing a shock return to the event.
Sotherton, 34, abandoned the hep-
tathlon to focus on the 400m 11
months ago but yesterday performed
a dramatic U-turn to boost her hopes
of making next summers Games at
all. Yet she admits she will struggle to
overhaul compatriot Jessica Ennis, the
former world champion who is one of
Team GBs top medal prospects for
London 2012.
I dont think Im going to be
rivalling her as I possibly could have
been a few years ago, she said. I
know where my limits lie, Im not
striving for a gold medal.
Sotherton helped the 4x400m relay
team win silver at the European
Indoor Championships in March but
failed to qualify for the summers
World Championships and faced a
battle to make the 2012 team.
However she believes she stands a
better chance in her most familiar
event, which she quit over fears her
body could not cope with the work-
load. I started training four weeks
ago for the heptathlon, she said. Its
rejuvenated my feelings for the sport.
Sotherton
U-turn for
heptathlon
BY FRANK DALLERES
OLYMPICS
Kelly Sotherton Picture: ACTION IMAGES

Its a cracker:
Balotelli face
of firework
safety drive
MANCHESTER CITY have delighted in
confounding expectations this sea-
son but last night sprung a surprise
equal even to their 6-1 demolition of
Manchester United when they
unveiled Mario Balotelli as the face of
a firework safety campaign.
Striker Balotelli, no stranger to con-
troversy throughout his short career,
was forced to flee his Cheshire home
in the early hours of Saturday morn-
ing after it was set ablaze by someone
lighting fireworks in the bathroom.
The 20-year-old Italian yesterday
broke his silence on the incident to
deny culpability and blame friends
for the inferno as well as urging
amateur pyrotechnicians everywhere
to exercise greater care.
The newspapers got the story
wrong about me and the fire at my
house. I didnt set any fireworks off,
it was a friend of mine. I didnt know
anything about it until I heard the
shouting coming from the bath-
room, said Balotelli.
L u c k i l y ,
nobody was
injured, and my
friend apolo-
gised to me for
the damage to
my house. It
was a really
stupid thing
for him to do,
someone could
have been really
hurt, and I was really, really angry
with him about it. It is an important
message that children should not
mess with fireworks. They can be
very dangerous if they are not used
in the right way. People should follow
the firework code.
Balotelli celebrated the first of his
two goals in Sundays seismic
Manchester derby by lifting his shirt
to reveal another top bearing the slo-
gan: Why always me?, and yesterday
hinted at the meaning behind the
message. I did it for many reasons,
but Ill leave it for other people to fig-
ure out what it means, he said. Im
sure people can work it out.
It has been seen as a tongue-in-
cheek nod to his catalogue of colour-
ful incidents, which at City alone has
included a club fine for throwing
darts at youth team players, being
substituted for attempting a back-
heel when through on goal and
wearing a glove-shaped hat.
Controversy aside,
Balotelli believes the thrash-
ing of neighbours and
Premier League champions
United has put down a
marker.
This win and
this performance
showed everyone
that we can be
the best, he said.
At the moment
we play well
every week, but
the derby was
special.
BY FRANK DALLERES
FOOTBALL
SPORT | IN BRIEF
Villas-Boas waits on ref probe
FOOTBALL: Chelsea manager Andre
Villas-Boas will learn tomorrow whether
he is to face punishment for his outburst
at referee Chris Foy following Sundays
defeat at QPR. Rangers, meanwhile, will
speak to defender Anton Ferdinand
today regarding his on-field row with
Blues skipper John Terry, after which
Terry denied making racist remarks.
Dusautoir in consolation prize
RUGBY UNION: France captain Thierry
Dusautoir received consolation of sorts
for his sides World Cup final defeat yes-
terday when he was named player of the
year by the International Rugby Board.
England Under-20 fly-half George Ford
was named young player of the year.
Gunners and United set for cup
FOOTBALL: Arsenal defender Thomas
Vermaelen is being tipped to return
from injury tonight against Bolton.
Manchester United are also in Carling
Cup fourth round action, at Aldershot.
Auckland salutes heroes
as All Blacks parade cup
NEW ZEALAND captain Richie
McCaw admitted to being blown
away yesterday after an estimated
quarter of a million people lined the
streets of Auckland to toast the World
Cup winners.
McCaw, head coach Graham Henry
and the rest of the All Blacks paraded
through the city with the Webb Ellis
Cup less than 24 hours after they had
defeated France 8-7 in a titanic final
at nearby Eden Park.
Prime Minister John Key also joined
the party, which saw crowds 20 peo-
ple deep in some places and was the
biggest celebration since the coun-
trys Americas Cup crew Black Magic
won the famous sailing prize in 1995.
I was blown away, it just shows the
amount of support and passion there
is for the All Blacks and rugby in New
Zealand, said McCaw.
Kiwis sometimes dont show their
emotions too much but there was
plenty of that there.
Former Wales and Lions coach
Henry also revelled in the celebra-
tions but refused to discuss his
future, which will include a stint
with the Barbarians.
Its unbelievable, mind-blowing,
the number of people out there was
just incredible, he said. I thank
them from the bottom of my heart.
Fly-half Dan Carter, whose tourna-
ment was ended prematurely by a
groin injury, added: This is very spe-
cial. I cant believe how many people
are out here. This is just awesome.
BY FRANK DALLERES
RUGBY UNION
Balotelli revealed
a slogan against
United and yes-
terday launched
a firework safety
campaign (left)
Pictures: ACTION
IMAGES; MCFC
35
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email sport@cityam.com
FULHAM owner Mohamed Al Fayed
has launched a stinging attack on the
clubs former manager Mark Hughes,
calling him a strange man and
insisting he was not their first choice
appointment.
Al Fayed penned an open letter on
the Cottagers website in response to
comments Hughes made at the week-
end in which the Welshman said he
surprisingly resigned in the summer
because the west Londoners did not
match his ambition.
What a strange man Mark Hughes
is. Sacked by Manchester City, he was
becoming a forgotten man when I
rescued him to become manager of
Fulham, wrote Al Fayed.
Even when results were bad, I did
not put pressure on him. I gave him
every support financial, moral and
personal. He fully negotiated a two-
year extension to his contract. On the
day he was due to sign, he walked out
without the courtesy of a proper
explanation. And now he insults the
club, saying it lacks ambition.
Al Fayed added that Hughes was
only appointed after the club failed
in their attempts to hire Dutchman
Martin Jol, who replaced him during
the close season.
In every aspect of its work,
Fulham is a progressive club with a
top manager in Martin Jol, the man
we had really wanted when Hughes
was appointed, he went on.
We shall endeavour to prosper
without him simply because, when
the challenge came, it was not the
club but Mark Hughes who lacked
the courage and ambition to take on
the task of leadership. If people are
looking for a flop, they only have to
look no further than the man who
has lost his spark.
Hughes was tipped to land the
Aston Villa job within days of quit-
ting a move he denies was his inten-
tion but has been out of work since.
Al Fayed in strange
man blast at Hughes
BY FRANK DALLERES
FOOTBALL
Super Mario is
unpredictable,
just like Rooney
Y
OU dont have to cast your
mind back far to recall a
time when top talents
choosing to join
Manchester City raised eyebrows
and prompted mutterings about
money. Even in the summer when
they signed Sergio Aguero, one of
the most recent of their high-pro-
file acquisitions, people were sur-
prised.
In a few months all that has
changed. City now belong in the
very top band of clubs that any
player in the world would want to
join, along with Barcelona, Real
Madrid and Manchester United.
The newcomers might not be able
to match the others for history,
but Id defy anyone to say they
are not surprised at how good
they look.
Winning the
FA Cup in May
helped, but the
way they have
begun this season,
culminating in
their humiliation
of United at Old
Trafford on
Sunday, has really
opened everyones
eyes to how good they can
be. Whats more, they
have proven to them-
selves that they can not only win,
but also play fantastic football
and score more goals than anyone
else.
So much credit has to go to the
manager. Roberto Mancini has
banished questions about negativ-
ity and with the obvious excep-
tion of Carlos Tevez got a bunch
of potentially difficult players on
huge salaries operating as a prop-
er team. That takes a strong char-
acter, and all the while knowing
he is only two results from a crisis.
Mancini (below) has done remark-
ably well.
But it was another Italian who
stole the limelight against United.
Mancini reckons Mario Balotelli
belongs in the worlds top five,
and I would agree. He looks class,
some of his touches, such as in
the build-up to Agueros goal, are
real quality, and he has all the
ingredients to be the best.
Clearly he is a work in progress.
Fireworks capers aside, he has
come a long way from last year,
although he will always have that
element of unpredictability, like
Wayne Rooney. For now at
least, he seems to be
enjoying himself, and I
love watching him.
Sundays win saw
them overtake United
as favourites for the
Premier League
title and Id agree.
They are five
points ahead and
the only team
capable of signifi-
cantly strengthen-
ing in January,
should they need or
want to. Its a fright-
ening thought.
FOOTBALL COMMENT
TREVOR STEVEN
HAMMER TIME | Nolan downs Brighton
KEVIN NOLAN scored his fourth goal of the season last night as West Ham beat Brighton
1-0 at the Amex Stadium and climbed to second in the Championship. Midfielder Nolan
rifled the winner from distance in the 17th minute but the Hammers had to withstand
sustained pressure before clinching their seventh league win of the season. Their next
match is on Saturday at home to Leicester, who last night parted company with their
manager, former England boss Sven-Goran Eriksson. Picture: ACTION IMAGES
WORLD No1 Luke Donald admits his
performances in Majors have been
the only blots on a landmark year
that has been comfortably the best of
the Englishmans career and prom-
ises to get even better.
Donald, 33, completed the first
part of a potential historic double by
securing top spot in the PGA Tour
money list with a sensational final
round at the Disney Classic in Florida
on Sunday.
He now hopes to become the first
man to win the American and
European money lists in the same sea-
son, and is strong favourite with a
lead of more than 1m going into
the last eight European tour events.
Yet his Major duck remains intact
after 29 attempts and, despite tying
for fourth at the Masters earlier this
year, his failure to land one of the
four biggest prizes remains a
solitary source of regret.
Im very, very excited
about my golf, said
Donald (right).
Obviously the
only disappointing
part of the year, I
suppose, is not win-
ning a Major, but Ill
keep persevering
and giving myself opportunities.
Donald adjusted his sched-
ule to give himself the best
chance of winning the PGA
Tour title but will now take
time off as his wife prepares to
give birth to their second
daughter.
After that he is expect-
ed to play in the
Alfred Dunhill
Championship in
South Africa next
month, before the
European Tours
big-money finale
in Dubai in early
December.
Major disappointments are
dazzling Donalds only regret
BY FRANK DALLERES
GOLF
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