Cityam 2012-01-23

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Sir Stelios
seeks allies
in pay clash
SIR STELIOS Haji-Ioannou is set to
meet three of easyJets key sharehold-
ers this week in a bid to win backing
for his fight against the airline
groups boardroom pay plans.
The airlines billionaire founder,
who controls a 37.4 per cent stake, is
calling for investors to vote down the
companys remuneration report
ahead of the annual general meeting
on 31 January. A straight vote of more
than 50 per cent against the plans
would be massively embarrassing for
the board, which is chaired by former
KPMG grandee Sir Michael Rake.
Sir Stelios argues that plans to
award around 7m in bonus shares to
the airlines senior staff are based on
phoney and self-serving calcula-
tions. Sir Michael responded by call-
ing Sir Stelios letter inaccurate,
inappropriate and misleading.
BY KASMIRA JEFFORD
REMUNERATION
The Treasury Select Committee (TSC) wants Mervyn King to agree to tighter supervision of the Bank of England Picture: REUTERS
MPs WILL today ramp up their push
for greater scrutiny of the Bank of
England by publishing a stinging cri-
tique of the Banks own suggestions
for reform.
The Treasury Select Committee
(TSC) says the Bank needs a powerful
supervisory board and should hand
over more influence to the chancel-
lor in the run up to a potential finan-
cial crisis.
In a response to the Banks propos-
als, the Committee says they fall
well short of what is required.
A lot is at stake, commented
Conservative MP Andrew Tyrie,
chairman of the TSC. The Banks
authority can be greatly enhanced if
we get this right.
It is understandable that people
dont rush to embrace more mean-
ingful and intrusive supervision of
their activities, Tyrie added. But in
a public body with these powers, it is
essential.
Tyrie and fellow MPs jousted with
Bank governor Sir Mervyn King in
Westminster last week, after King
accused politicians of wanting
another group of unelected offi-
cials... to second guess the decisions
of the first group.
Liberal Democrat MP John Thurso
mocked the Banks proposal for a
watered down oversight committee,
describing it as a committee [to]
determine whether all the wrong
MPS: BANK OF ENGLAND
NEEDS RADICAL REFORM
BY JULIAN HARRIS
REGULATION
www.cityam.com Issue 1,554 Monday 23 January 2012 FREE

LONGEVITY
PAYS OFF
WHY AN AGEING
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decisions have been taken correctly.
The TSC charges the Bank with
escaping scrutiny over its decisions
in the build up to the financial cri-
sis, while regulators and banks have
been investigated.
The Bank has still not properly
reviewed its own role in the finan-
cial crisis, Tryie said. The [Bank of
England] Courts proposals would
not permit the sort of review that
the Financial Services Authority has
recently conducted into RBS.
Tyrie added: All modern institu-
tions review their own performance.
In that respect a reformed Bank of
England should be no different.
The TSC wants a supervisory board
to have the duty and authority to
investigate the Banks decisions and
offer retrospective judgement.
A majority of supervising mem-
bers should be external to the Bank,
to avoid groupthink, the TSCs
report suggests.
The Bank has conceded that the
chancellors powers should be
enhanced when there is both a
material risk to public funds and a
serious threat to financial stability.
Yet the TSC wishes the chancellor to
adopt the extra powers as soon as
the first criterion is met.
Conservative MP Sajid Javid told
City A.M. that the stand-off between
the Bank and MPs is not necessarily
bad for the UK. At such an impor-
tant time as this its healthy to have
a debate between what the TSC
thinks and what the Bank thinks,
said Javid, who previously worked in
the Citys financial markets.
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Euromoney FX Survey 2011
News
4 CITYA.M. 23 JANUARY 2012
THE coalition is set to drop a key part
of its controversial plans to reform
executive pay when it publishes a
review tomorrow.
City A.M. understands the
Department for Business has cooled on
the idea of forcing companies to
appoint workers representatives to
the internal committees which recom-
mend the level of pay for the directors
of FTSE-listed companies.
Ministers and officials are believed
to have accepted there are major obsta-
cles to the plan, because staff reps are
not directors and would not share
legal responsibility for the perform-
ance of a company, even if they sat on
remuneration committees.
Instead Vince Cable, the Business
Secretary, is expected to call for greater
transparency over pay, including the
publication of a single figure for the
amount of money received by each
director, and greater diversity among
the membership of remuneration
committees. Cable is also likely to advo-
cate that shareholders be given more
power, which could include binding
votes on directors salaries.
BY PETER EDWARDS
POLITICS
EU PLANS RAISE HOME FORECLOSURE

RISK
UK homeowners could face higher
mortgage costs and find themselves at
greater risk of foreclosure as early as
next year because of an obscure clause
in the bank capital directive being
worked on by the European parlia-
ment.
US FUNDS RETURN TO EUROPEAN BANK
PAPER
US money market funds have begun
moving back into European bank
paper, a sign that central bank efforts
to backstop key institutions are
improving risk appetite. This past
week, the funds were buyers in
increased issuance of French and
Spanish banks commercial paper,
according to bankers. Notes issued by
US banks with foreign parents rose
$6bn to $152bn and foreign domiciled
bank notes outstanding rose nearly
$3bn to $133bn, according to figures
from the Federal Reserve.
THOMAS COOK BOOKINGS DOWN BY A
THIRD
Thomas Cook, the troubled UK travel
operator, is reeling from a slump of as
much as a third in summer package
holiday bookings during the first half
of January, which threatens to create
new cash flow problems on the com-
pany. The leisure industry monitor
shared by tour operators to track book-
ings shows that the industry as a
whole suffered a 15 per cent decline in
bookings in the two weeks to January
13, compared to the equivalent weeks
in 2011.
TESCO THROWS IN THE TOWEL TO
FOCUS ON WHAT IT DOES BEST
Tesco is poised to walk away from its
standalone furnishing stores because
of weak sales at the warehouse-style
outlets in retail parks. Britains biggest
grocer, whose share price plunged by
16 per cent two weeks ago after reveal-
ing disappointing Christmas trading,
is thought to be keen to exit from leas-
es its holds on all 13 of its Home Plus
stores.
RACE ON FOR AZZURRI, EVEN BEFORE
STARTING GUN FIRES
A bidding war is set to break out for
Azzurri, a pioneer in alternative tele-
coms, as some of the industrys most
acquisitive businesses start to circle
the company. Daisy and Alternative
Networks will lead the charge.
SECRET JOBLESS COULD MASK EXTENT
OF UNEMPLOYMENT
Jobcentre officials have moved hun-
dreds of thousands of unemployed
people claiming jobless benefits on to
a separate training allowance over
the past year, raising concerns the
Government is massaging figures to
mask the true extent of unemploy-
ment.
AIRLINE COST BLOW FOR BORIS
ISLAND
The enormous cost of building a new
airport in the Thames estuary will
mean airlines paying seven times as
much for landing fees compared with
the present costs at Heathrow, an
industry analysis has revealed.
Experts say the cost of landing could
rise to 100 per passenger.
VW CONSIDERS SPEEDING UP
PORSCHE INTEGRATION, PEOPLE SAY
Volkswagen AG is considering taking
over the remaining 50.1 per cent
stake it doesnt already own in
Porsche Automobil Holding SEs core
sports-car unit ahead of time slots
defined in the initial merger agree-
ment to speed up integration into its
stable of brands and reap more cost
synergies, three people familiar with
the situation said.
E-BOOK PRICES GET SLASHED
The book world is discovering the 99-
cent special. Nearly two years after
book publishers forced a sharp
increase in the price of newly
released e-books, a new low-price
trend is emerging, with 99-cent tem-
porary prices on e-books.
WHAT THE OTHER PAPERS SAY THIS MORNING
Why a wealth tax is a very bad idea
EVERY few months, when the going
gets tough for the Liberal Democrats,
Vince Cable renews his call for a
Mansion Tax. With the LibDems
slumping to a disastrous 9 per cent in a
YouGov poll, against 41 per cent for the
Tories and 36 per cent for Labour, it
was no surprise to see him unveil yet
another incarnation of his scheme.
The idea is to appeal to the green
eyed monster in those of us for whom
owning a 2m home is little more
than a dream. Waging war on the rich
is popular but that doesnt make it
right or economically sensible. Even
people with no assets should reject
Cables scheme, as well as all other pro-
posals for wealth taxes or land value
taxes. They are the thin edge of a long
wedge and will make everybody worse
off in the long run.
A key reason the UK, for all its unat-
tractive characteristics, remains a safe
haven of sorts for global investors, is its
history of legal stability. Foreigners
know the UK takes property rights seri-
ously and that their wealth will be pro-
tected that is why they spend so
much here and why Greeks fleeing
crumbling banks are converting euros
into London homes. This is great for
our current account deficit, means we
remain at the heart of capital flows
and that the worlds entrepreneurs
and financiers will look at the UK kind-
ly when they decide where to create
jobs. It helps preserve Londons role as
a global city. Sure, foreign buyers push
up property prices but that would
have happened anyway as a result of
our scandalous planning rules that
make it so hard to build new family
homes. If the government wants to
hike a tax, it should get rid of the loop-
hole which means some foreigners
dont pay stamp duty. It is a flawed tax
but should apply equally.
A wealth tax is even more destruc-
tive of the core principles of private
property than an ultra-graduated
income tax. It breaches the core princi-
ple that once someone has earned
money (and paid tax on it) it is then
theirs to keep. Wealth taxes are
designed to reverse asset accumula-
tion and to ensure that only those cur-
rently in work can remain wealthy;
they are biased against pensioners. An
entrepreneur who made a few million
building her company, sold out,
bought a large house and retired early
would eventually see her wealth dwin-
dle. Her total tax payments would
shoot up to well over 100 per cent of
her income and she would be forced to
sell assets (on which she already paid
tax) to survive. Guess where she would
retire? Not in the UK.
The practical flaws are crippling.
Someone who owns a 1.9m house
with no mortgage will not pay the tax;
someone in a 2m house with a 2m
mortgage (and no wealth at all) will
pay it. Someone with one house worth
2m will pay but someone with twen-
ty 1m properties wont. Given these
flaws, within a couple of years, there
would be pressure for the threshold to
be cut drastically. There would be calls
to shift to a broader wealth tax on all
net assets. Within a few years even pen-
sion pots would doubtless be included.
A wealth tax is the best way to
destroy our most vital asset: Britains
historic respect for property rights. It
must be resisted.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
LABOUR leader Ed Miliband yesterday
challenged David Cameron to block a
bonus for RBS chief executive
Stephen Hester which many think
will be around 1m.
He said the coalitions treatment of
Hester would be a test. He told the
BBC: Taxpayers are still, you know,
footing the bill for whats happening
at the Royal Bank of Scotland. You
know if responsibility means any-
thing, I dont think he should be get-
ting his bonus.
The RBS remuneration committee
meets on Wednesday and Cameron
has so far said the banks bonuses
would be lower than last year.
BY HARRY BANKS
POLITICS
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editors
Code of Practice, a copy of which can be found at
www.pcc.org.uk
Printed by Newsfax International,
BeamReach 5 Business Park,
Marsh Way, Rainham, Essex, RM13 8RS
Business Secretary
Vince Cable will unveil
new proposals for
executive pay tomor-
row
4th Floor, 33 Queen Street, London, EC4R 1BR
Tel: 020 3201 8900 Fax: 020 7248 2711
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 Gavin Billenness
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
Cable to tone
down pay plan
Ed Miliband has said the RBS boss shouldnt get a bonus this year Picture: REUTERS
Labour: no Hester bonus
IAN POWELL is expected to be re-elect-
ed unopposed as chairman of PwC for
a second term, as no rival candidates
have emerged nine days before the
deadline for candidacies.
At this stage, it is not expected
that a challenger will come forward,
a source close to PwC told City A.M.,
although any of the Big Four firms
873 partners can theoretically still
submit a challenge to be considered
alongside Powell by 31 January.
Powell, 55, was elected as chair-
man and senior partner of the UK
firm of PwC in April 2008, before
starting the four-year term on 1 July
that year, months before PwC was
appointed as administrator to
Lehman Brothers in September.
His background in restructuring,
notably acting as the administrator
to MG Rover in 2005, is understood
to have created the view that Powell
has been the right man for the job at
a difficult time for City firms.
Powell stated that he intends to
run to lead the firm for a second and
final term earlier this month,
describing the job as fascinating.
If he remains the only candidate
under consideration by the firms
supervisory board, Powell will still
have to submit a manifesto detailing
his plans for the business, as PwC
comes under regulatory and politi-
cal pressures.
He will also still have to go
through an election process, man-
aged independently by the Electoral
Reform Society. PwC will announce
its new UK chairman, who will start
on 1 July, in the spring.
The one-horse leadership race at
PwC is in contrast to the open battle
to succeed UK chairman John
Griffith-Jones at rival auditor KPMG.
As many as 10 names are under-
stood to be in the frame to take over
from Griffith-Jones when he steps
down in September the latest of
which to emerge is Richard Reid, the
London chairman of KPMG who is
known for his work with Business in
the Community.
Reid joins Richard Bennison, Oliver
Tant and Alan Buckle on a list of
KPMG names tipped to be in the run-
ning for the chairmans role by City
sources although KPMG declined to
comment before the expected short-
list announcement in the spring.
Ian Powell set
to renew PwC
chairmanship
BY HARRIET DENNYS
PROFESSIONAL SERVICES
News
Ian Powell is looking forward to another term as PwC chairman Picture: REX
Greek debt talks could fail on new demands
NEGOTIATIONS between financial
authorities and bondholders may be
derailed this week by the increasing
demands of the European
Commission, ECB and IMF.
However, Charles Dallara, head of
the Institute for International Finance
(IIF), which represents investors hold-
ing around 200bn (165.7bn) of Greek
government debt, yesterday
announced he remains hopeful that
a deal will be reached soon though it
is unlikely that he will hit todays
deadline, set by finance minister
Evangelos Venizelos.
Meanwhile Italian Prime Minister
Mario Monti stepped up his campaign
to boost the euros rescue fund.
It is thought that private investors
in Greece were close to finalising a
deal on Friday, under which they
would take a 50 per cent haircut on
their bonds, which would be swapped
for new notes yielding four per cent.
Officials are believed to have
demanded investors accept yields of
3.5 per cent or even less on that new
debt a further concession to the
bankrupt Greek government, which
could potentially de-rail the deal.
If the deal is not completed by
March, Greece is expected to default
on the 14.5bn of repayments due.
Looking to the stability of the
Eurozone as a whole, Monti wants the
European Stability Mechanism to be
doubled to 1 trillion.
Italy is currently undergoing a size-
able fiscal and economic adjustment,
and Monti hopes the safety net of a
larger bailout fund will calm the
investors who fear Italy cannot pay its
debts, and so make the reforms easier.
EUROZONE
Debt negotiator
Charles Dallara
remains hopeful a
deal can be made.
Pic: REUTERS
PRIVATE EQUITY firms and buy-out
groups are poised to make a bid for
Peacocks, the discount clothing chain,
which collapsed into administration
last week.
Its administrators KPMG will open
the data room to Peacocks today,
which will allow potential bidders to
browse financial and other relevant
data on the firm. KMPG expects to
receive the first round of bids by
Monday 31 January.
As many as 50 bidders are said to
have expressed an interest in the belea-
guered retailer, which owns 611 stores
and employs 9,000 people either as a
going concern or for parts of its estate
and its stock.
They include Edinburgh Woollen
Mills, which bought a third of retailer
Jane Normans stores out of adminis-
tration last June, and private equity
firm Sun European Partners which is
thought to be considering a bid for the
entire business. OpCapita, currently
buying Comet from electricals firm
Kesa, is also said to be interested.
A judge is today expected to give the
go-ahead for Peacocks sister chain
Bonmarche to be bought by Sun
European via a pre-pack administra-
tion, in a deal that would safeguard
some 380 stores and 3,600 staff.
The administration of Peacocks is
one of the biggest since Woolworths
went down in 2008 and strikes yet
another blow to the UK high street,
which has seen La Senza, Past Times
and Barratts Priceless fall victim to
tough conditions and a weak con-
sumer environment.
Last week, Chris Laverty, joint
administrator and restructuring part-
ner at KPMG, said: Like many retailers
Peacocks has suffered from tough eco-
nomic conditions, which have seen its
customers reduce their spending on
the high street.
A total of 249 staff, almost half of
Peacocks head office workforce in
Cardiff, were made redundant last
Thursday. However, strong interest in
the firm has raised hopes that KPMG
may indeed find a buyer to rescue the
remaining jobs.
The chain collapsed after rescue
plans, including injecting fresh equity
and a debt-for-equity swap, ultimately
failed. The company has borrowings
of 700m while it made sales of only
720m in the year to April 2010.
Peacocks still
searching for
white knight
BY KASMIRA JEFFORD
RETAIL
Up to 50 bidders
are said to have
expressed interest
in discount cloth-
ing chain Peacocks,
led by Richard Kirk
(inset picture). The
company opens its
data room today
after going into
administration last
week, despite sever-
al designer collabo-
rations including a
range of dresses
designed by Pearl
Lowe (pictured)
Picture: PA
News
TIME LINE | THE RISE AND FALL OF PEACOCKS
1884
Peacocks Penny Bazaar was founded in
Warrington by Albert Peacock as a family-
run business selling a range of cheap goods.
1996
Robert Peacock, the founders grandson,
appoints Richard Kirk formerly managing
director at frozen food chain Iceland as
chief executive to help prepare the business
for a sale or float.
1997
Peacocks is sold to Cinven, the private equity
firm, netting Robert Peacock and his busi-
ness partner, Hugh Child, who together own
an 80 per cent stake, 36m.
1999
The 280-store firm lists in London with a
market value of 155m and 20m debt. Kirk
makes 3.4m while Cinven triples its money.
2005
Richard Kirk leads a 400m management
buy-out, supported by Goldman Sachs and
hedge funds including Och-Ziff and Perry
Capital, who together put up 160m in debt
in exchange for a 55 per cent of the new
holding company. Kirk lands a windfall of
26m, but leaves half in the business.
2010
Investors attempt to restructure Peacocks
complicated finances. The firm then puts
itself up for sale with a price tag of around
500m but calls off the sale after bidders
were not prepared to meet the asking price.
2012
Peacocks goes into administration, after the
company and its syndicate of debt and equi-
ty lenders fail to restructure its 700m debt.
Richard Kirk is set to lose his 13m invest-
ment.
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THE protesters entered quickly and qui-
etly in trademark style. They left with
similar speed, however, when they
realised their takeover of a City office
block owned by Berkeley Homes
risked adding to the ranks of the poor,
rather than helping them.
The takeover of Roman House in the
Barbican was the shortest of the five
occupations so far.
Activists entered the building on
Saturday morning, highlighting the
significant stakes in Berkeley held by
taxpayer-funded Lloyds and hedge fund
Egerton Capital. Barely 24 hours later,
however, they had gone, after contrac-
tors told them they feared the loss of
their jobs if a planned renovation of
the building was cancelled because of
the Occupy Everywhere demonstra-
tion.
The developer had called on activists
to end the misguided protest because
of safety concerns and threat to 90
much-needed new homes... [and] a sig-
nificant number of key construction
jobs during an economic crisis.
Now Occupy supporters plan to
stand in the elections for Mayor of
London and the London Assembly.
They will not form an Occupy political
party but plan to stand as independ-
ents on 3 May. Last night activists said:
We need to seize the state not flee it.
This is direct action at the ballot box.
Their chances of success would appear
very low, however, given the way Boris
Johnson and Ken Livingstone dominate
Londons electoral landscape.
The move comes at a time when the
activists are under increased pressure.
They are fighting a possession order
granted to Sun Street Properties, a sub-
sidiary of UBS, after they took over a
disused office block, near Liverpool
Street station, in November. Last week
the City of London Corporation won a
High Court bid to evict protesters from
outside St Pauls Cathedral, although
members of the group will appeal.
The activists have repeatedly called
on the Corporation to publish full
details of its accounts. They are due to
hold a teach out in the open areas of
the Barbican this morning.
Jobs fear cuts
short protest
Protesters entered Roman House in the early hours of Saturday Picture: REUTERS
BY PETER EDWARDS
POLITICS
News
8
REPUBLICAN presidential candidate
Mitt Romney pledged yesterday to
release his tax returns this week,
bowing to pressure from critics and
hoping to make up for a misstep that
helped rival Newt Gingrich win
South Carolinas primary race.
Long considered the frontrunner,
Romney stumbled badly in debates
last week on his delay in disclosing
his tax returns and then lost his air
of being the inevitable Republican
nominee after a resurrected
Gingrich defeated him in the third
contest.
Gingrich, the former speaker of the
House of Representatives, pounced
on Romneys surprising weakness
and rode it to victory on Saturday,
trouncing the former governor of
Massachusetts by 40 per cent to 28
per cent in South Carolina.
Trying to regain his momentum
as the race heads to Florida, Romney
sought to draw a line under the bad
week and fix his error. He said he
would release his 2010 returns and
an estimate for 2011 tomorrow.
We made a mistake holding off as
long as we did and it just was a dis-
traction, Romney said on Fox News.
Last week, Romney said he pays a
tax rate of around 15 per cent, a low
rate compared to many American
wage earners but in line with what
wealthy individuals pay on income
that largely comes from investments.
One of the wealthiest US presiden-
tial candidates in history, Romney
emphasised he was releasing two
years of returns after Gingrich post-
ed his taxes for 2010 last Thursday.
Gingrich, who has see-sawed in
national polls and must prove to
Republicans that he is the most
electable candidate despite politi-
cal and personal baggage, praised
Romney and said the issue would be
moot once the taxes were out.
I think thats a very good thing
hes doing and I commend him for
it, Gingrich said on NBCs Meet the
Press.
Romney vows
transparency
after defeat
US REPRESENTATIVE Gabrielle
Giffords, who was shot in the head
during a shooting spree in Tucson
a year ago, said yesterday that she
will step down this week from the
US Congress to focus on her recov-
ery.
I have more work to do on my
recovery, so to do what is best for
Arizona I will step down this
week, Giffords said, posting the
announcement on social media
such as Twitter and YouTube.
Im getting better. Every day my
spirit is high. I will return and we
will work together for Arizona and
this great country. Thank you very
much, she added.
Giffords, a Democrat represent-
ing Arizonas District 8, is serving
her third term.
She was shot through the head
on 8 January last year when a gun-
man opened fire on her first con-
gressional outreach meeting of the
year in Tucson, killing six people
and wounding 12 others.
A 23-year-old college dropout
named Jared Loughner was arrest-
ed and charged with the crimes,
including attempting to assassi-
nate Giffords.
He pleaded not guilty, and was
found unfit to stand trial.
Giffords to step
down to focus
on her recovery
Mitt Romney has vowed to release his tax returns tomorrow Picture: REUTERS
Republican Newt Gingrich has won South Carolinas primary race Picture: REUTERS
BY HARRY BANKS
US ELECTIONS
US POLITICS
News
GYM giant Fitness First is restructur-
ing its 550m debt pile just months
after global market turmoil forced it
to put off a float in Singapore.
The chain, which is owned by pri-
vate equity house BC Partners, is set
to meet its lenders over the coming
months because of an expectation it
will breach the terms of its loans.
Several other buyout groups have
approached BC Partners about a
takeover but ultimately they could
not raise the money needed because
of the dire state of the debt market.
Fitness Firsts lending facility will
not expire until next year but, like
many firms which were bought at the
height of the buyout boom, it is hav-
ing to cope with tougher market con-
ditions. It is believed that directors
are happy with recent trading, howev-
er, and they are working with consul-
tancy Alix Partners on cost-cutting.
BC Partners, which declined to
comment, began to look around at
other ways for an exit after shelving
plans for a listing last October. It was
one of many UK and US companies,
such as Groupon and Facebook, to
postpone because of the swings in
global markets.
BC Partners had been expected to
raise around 500m in a listing valu-
ing Fitness First at between 1bn and
1.2bn. The gym operator has built a
strong presence in the Far East,
including in Singapore, Hong Kong,
Thailand, and Malaysia, and has more
than 1.4m members in 17 countries
in total.
Its origins go back to 1992 when
entrepreneurs Mike Balfour and
Christopher Pearce set up their first
club in Bournemouth.
Fitness First
faces 550m
restructure
EMPTY government office spaces are
to be made available to small busi-
nesses for low rents, David Cameron
will announce today.
Around 300 state-owned buildings
are currently unused, and while the
priority is to sell off unused assets, in
the meantime they will be let out as
part of the campaign to help small
firms.
The Prime Minister believes the
extra office space will help companies
grow, boosting the economy.
The Federation of Small Businesses
gave a cautious welcome to the plans.
Rent is one of the highest over-
heads a small enterprise faces, and it
is important that there is affordable
property out there, said Andrew
Cave from the industry body.
However, as the government is
planning to sell much of the space, it
describes the planned leases as flexi-
ble, short-term arrangements.
Small firms crave certainty, said
Cave.
The government will need to pro-
vide some degree of certainty on how
long companies can use the offices,
and some may be put off renting the
space if that cannot be given.
The plans are not yet ready to be
put in place, with areas that will ben-
efit the most still to be identified.
PROFIT warnings soared in the final
quarter of 2011, with Ernst and Young
claiming yesterday that the growing
gap between star performers and
zombie companies points to more
this year.
The three-month period saw a 70
per cent jump in warnings the high-
est quarterly rise since early 2001.
Quoted companies issued 88 profit
warnings last quarter, up 51 on the
previous three-month period.
Those 88 took 2011s total to 278,
compared with 196 in 2010.
Companies in the general retail sec-
tor were worst hit, issuing 39 warn-
ings last year more than the whole
of 2009 and 2010 combined.
Ernst and Young believes the weak
economic outlook means the trend
will continue into this year firms
like Tesco have already issued profit
warnings this month.
Unused state
offices to be let
to small firms
Ernst and Young: expect
a jump in profit warnings
Tesco cut its profit forecasts earlier this month Picture: REUTERS
BY PETER EDWARDS
PRIVATE EQUITY
UK ECONOMY
Its portfolio includes investments in

Phones4U and estate agent Foxtons, known for
its trademark branded Mini Coopers.
Was close to buying CPA before the patents
management giant went to Cinven last week.
FAST FACTS | BC PARTNERS
News
BY TIM WALLACE
UK ECONOMY
CUTS to tax credits are set to strain

the UKs squeezed middle even
further, with wages continuing to
fall and mortgages beyond the
reach of many under-35s, a report
from the Resolution Foundation
will say today.
The Lloyds TSB spending power
report, also out today, reveals
spending on essentials, like utili-
ties, rose 4.6 per cent on the year to
December the fastest rate of
inflation for 18 months.
However, data from Markit sug-
gests the long squeeze on incomes
is beginning to ease.
The Resolution Foundation said
real incomes were down 4.2 per
cent, or 650 on average, in the last
year, with changes to tax credits
set to cut incomes by a further
500m.
The think-tank also revealed
that the proportion of under-35s
renting, rather than owning a
house, has risen from 28 per cent
to 47 per cent over the last six
years, with the number owning a
house falling by one-third.
Meanwhile Lloyds reports that
utilities bills increased by 9.3 per
cent in the 12 months to
December and overall real incomes
fell by 0.8 per cent in the year.
The banks study also shows sav-
ing intentions are rising, with 52
per cent of those with surplus
income looking to save it in
November, rising to 59 per cent in
December.
Similarly, 30 per cent were look-
ing to pay down debts in
December, compared with 25 per
cent the month before.
A slight positive note comes
from Markits household finance
index, which hit a 13-month high
in January.
The index rose to 36.4, up from
34.3 in December. As any figure
below 50 represents a decline, the
data shows finances worsened at
their slowest pace in 13 months.
The index of future expectations
also improved.
Around 42 per cent expect their
finances to worsen in the next 12
months, and 26 per cent anticipate
an improvement.
Such proportions take the
resulting index up to 42, from 37.1
in December the highest level for
four months.
However, those in the lowest
income categories are at their
most pessimistic for two years.
Squeeze on income
shows little easing
BY TIM WALLACE
UK ECONOMY
Increasing numbers are trying to save more, despite high inflation hitting incomes Picture: GETTY
News
ANALYSIS l Spending power growth
%
Income
growth,
after inflation
Discretionary
spending power
growth, before
inflation
Discretionary
spending power
growth, after inflation
Jun
2010
Sep
2010
Dec
2010
Mar
2011
Jun
2011
Sep
2011
Dec
2011
6.0
5.0
4.0
3.0
2.0
1.0
0.0
-1.0
-2.0
-3.0
-4.0
-5.0
News
THE UK is one of only two major
world economies set to become less
connected to the global economy, a
report reveals this morning.
Globalisation will continue to
advance in the next three years,
according to the Ernst and Young
report, with medium-sized emerging
markets expected to become notably
more connected with other coun-
tries.
But immigration restraints in the
UK and the US are likely to cause both
states to slip down the groups
Globalisation Index.
Since before the last general elec-
tion, the Conservatives have pledged
to reduce net immigration to tens of
thousands per year, while figures in
recent years have exceeded 100,000.
New laws in the US and the UK
will impact on the hiring of foreign
nationals, Ernst and Young expects.
Overall, however, the report reveals
that governments in the worlds 60
largest economies have so far avoided
reacting to the economic slowdown
with more protectionist measures.
Yet nine in 10 business executives
still fear the rise of trade barriers if a
double dip recession strikes.
While globalisation continues
apace regardless of weaker growth
around the world, the spectre of pro-
tectionism remains a threat, com-
mented James S. Turley, chairman
and CEO of Ernst and Young.
Businesses and governments have
to continue to make the case for glob-
alisation as a positive force.
Its not just tariffs and quotas
anymore, said Simon Evenett of
Global Trade Alert. Measures to
stimulate the economy have also had
unintended protectionist conse-
quences US quantitative easing, for
example, has provided a cover for a
lot of countries to react, both in
terms of international finance policy
as well as trade policy.
UKs global
connections
set to decline
Hungarians resent Brussels...
GOVERNMENT supporters rallied over
the weekend to support PM Viktor
Orban after the European
Commission began legal action
against his constitutional reforms.
More than 100,000 people gathered
on Saturday to support the ruling
Fidesz party as it prepares to compro-
mise in a bitter row with the EU to
secure a vital loan.
Critics say the new constitution
threatens the independence of the
media, judiciary and central bank
which is not allowed under EU rules.
However, the government has
announced it is prepared to make
legal changes to placate the
Commission, as it needs a loan if it is
to keep access to financial markets.
Orban will travel to Brussels tomor-
row in an effort to negotiate a political
agreement with EC president Barroso,
which he hopes will open the way for
loan talks with the EU and IMF.
At the start of the month, 70,000
protesters rallied against the govern-
ment and its constitution, and opin-
ion polls suggest Fidesz which won a
large majority in parliament in 2010
now has the support of just 1.5m vot-
ers in a country of 10m.
However, the most recent rally is
intended to push the government to
stand up to the EU.
We wont be a dominion, we dont
want to be a colony, rally organiser
and news editor Andras Bencsik told
the crowd. This is our message to
those abroad. The other message is we
fully support Viktor Orban, and we are
proud of what we achieved at the 2010
elections.
BY JULIAN HARRIS
WORLD ECONOMY
BY HARRY BANKS
EUROPEAN ECONOMY
CROATIA has voted in favour of join-

ing the European Union in 2013,
shrugging off concerns over the eco-
nomic turmoil in the bloc, accord-
ing to preliminary official results of
a referendum.
With 38 per cent of votes counted,
67 per cent had voted in favour of
becoming the blocs 28th member,
the state electoral commission said,
more than two decades after Croatia
broke away from socialist
Yugoslavia.
Turnout looked unlikely to breach
50 per cent of eligible voters, but
there is no binding minimum for
the referendum to be deemed valid.
This is a big day for Croatia and
2013 will be a turning point in our
history. I look forward to the whole
of Europe becoming my home, pres-
ident Ivo Josipovic said after voting.
... while Croatians vote
in favour of joining the EU
EUROPEAN ECONOMY
SHAREHOLDERS payouts increased

in 2011 for the first time since 2008,
Capita Registrars figures show today.
Dividends hit a record 67.8bn, rep-
resenting a 19.4 per cent rise for the
year, and a 26 per cent jump in the
fourth quarter compared with the
same period of 2010.
Excluding special dividends and
BPs 1.8bn increase as it restored div-
idends after its 2010 oil spill, underly-
ing growth came in at 12.8 per cent.
Firms increasing dividends out-
numbered those which cut payouts
by a factor of four, with 373 increas-
ing, starting or reinstating dividends
compared with only 90 which cut or
cancelled them.
A further rise of 11 per cent to
75bn is forecast in 2012, in part
boosted by a 2bn payout from
Vodafone next month, coming from
its Verizon Wireless income.
Such a rise means Capita expects
Vodafone to take over from Shell as
the UKs top dividend payer, con-
tributing almost ten per cent of total
payouts.
Gross yield is expected to come in
at 4.4 per cent, with the FTSE 100
yielding 4.5 per cent.
Dividend boom
as payouts rise
to record high
BY TIM WALLACE
UK ECONOMY
ECONOMISTS VIEWS: DID THE UK ECONOMY

CONTRACT AT THE END OF LAST YEAR?
HOWARD ARCHER | IHS GLOBAL INSIGHT

On balance, we would say that the risks are to the downside to our fore-
cast of flat activity. However, it is not inconceivable that the economy eked
out marginal growth helped by decent consumer spending in December.
NIDA ALI | ERNST & YOUNG ITEM CLUB

Octobers strong retail figures didnt stop a sharp decline in services
output in that month. We expect the ONS to report that GDP fell by 0.2
per cent in quarter four; the first leg of a short technical recession.
BRIAN HILLIARD | SOCIT GNRALE

Retail sales data shows a significant bounce but is actually a bit weaker
than we expected. Therefore it does not lead us to alter our forecast that
GDP will have fallen by 0.1 per cent in quarter four.
Labour hits out at government
ahead of growth figures release
THE LABOUR party has hit out at the
coalition government ahead of fresh
GDP figures expected this week.
When our economy has already
flatlined for a year and unemploy-
ment is rising, it will not be good
enough for George Osborne to claim
next week that any positive figure is
good news, said shadow chief secre-
tary to the Treasury, Rachel Reeves.
The value of retail sales jumped by
6.2 per cent last month, compared
with a year earlier, prompting hopes
that the UK could have avoided a
quarterly contraction in the economy.
Yet many economists expect the
official estimates to show slightly
negative growth.
UK ECONOMY
TWO PARTIES in one evening. Just a

usual Thursday night out for super-
model Kate Moss, who started last
Thursday evening at Arjun Waneys
Arts Club before moving on to the re-
opening of The Scotch the other side
of Piccadilly in St Jamess.
The Capitalist had been informed
that the Masons Yard venues opening
night would be a birthday party for a
well-known individual and it turns
out that person was artist Dinos
Chapman, whose guests alongside
Moss included the Russian super-
model Natalia Vodianova, actress
Rosamund Pike and filmmaker Sam
Taylor-Wood.
The Scotch has been revived from
its sixties heyday by Freddie Achom,
the chairman of Rosemont Luxury
Brand Group, whose varied business
interests include property consulting
and oil and gas investments in West
Africa. I get bored easily, Achom told
The Capitalist the following evening at a
party for yet another venture the re-
opening of Jalouse, the Hanover
Square nightclub he co-founded with
entrepreneurs Nick Gold, Moruf
Yoozooph and Alex Nicholl, following
its 250,000 refurbishment.
Fire-eating by a girl in a gold bikini,
magnums of champagne containing
sparklers, and art based on The Kama
Sutra there was plenty to hold
guests attention. The most important
of whom was a mystery Asian busi-
nessman, whose arrival required the
VIP area to be cleared of undesirables
as six security guards took up posi-
tion. The minders took a dim view of
The Capitalist asking who exactly this
ber-VIP might be, unfortunately
but he is, apparently, a very impor-
tant client of the club.
MEETING OF MINDS
SHE MADE her name as a page three
girl called Jordan. But now reality TV
staple Katie Price is taking her career
in a more serious direction as an
expert commentator on global mone-
tary policy. Even BBC business editor
Robert Peston, who spent yesterday
afternoon tracking the glamour
model on Twitter, approves.
Hard to disagree, wrote the City
hack when retweeting Prices observa-
tion that: OMG!! Eurozone debt prob-
lems can only be properly solved by
true fiscal union!!!. And not wrong
was Pestons verdict on Prices concern
that: Large-scale quantitative easing
could distort the liquidity of govt.
bond market. Lovely to see such a
meeting of minds.
For the record, Prices Twitter
account was not hacked. Apparently it
was a stunt for Snickers chocolate.
FAIRWAY TO HEAVEN
AS BONUS season gets underway, The
Capitalist hears of one appropriate
incentive for a hardworking City
fund manager free membership of
the Ross Priory Club, a 200-acre golf
club in Loch Lomond.
The perk has been thrown in with
an academic post at Strathclyde
University, which has appointed
Daniel Broby, the deputy chief exec-
utive of Silk Invest, as a visiting pro-
fessor in its department of
accounting and finance.
SUPERMODELS AND SHY
TYCOONS LAUNCH THE
SCOTCH AND JALOUSE
Spread betting & CFD trading are leveraged products
& can result in losses exceeding your initial deposit
TRADING
INSIGHTS
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PROTECTION
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www.cityindex.co.uk/gears
* Based on hourly training rates - 1 Point Spreads available during market hours on rolling and daily future spread bets and CFDS (excluding futures)
** For account holders
15 EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
The Capitalist
CITYA.M. 23 JANUARY 2012
DID THE Chelsea speakeasy Barts have
City profits in mind when it designed its
new up in smoke drinks menu? Not at
all, says the bar in these post-smoking-
ban days, it is all about giving smokers a
nicotine hit without having to stand out-
side in the cold. Among the first to get
their fix were ten insurance brokers,
whose food to cocktail ratio came in at
1:50. No problems with liquidity there
then, as the group worked their way
through the drinks infused with Perique
tobacco liqueur the Holy Smoke, the
Cignature [sic] Cocktail and the In
Vogue. Add in six more prohibition-
themed chasers, a magnum of Grey
Goose vodka, a bottle of Bacardi and
another of vintage Dom Prignon
champagne, and you are left with a
1,153.63 bill. And a headache.
BILL OF THE WEEK
The newly refurbished
Jalouse on Hanover
Square
Katie Price: Keen interest in the Eurozone
UNIVERSAL Music Group could be
forced to sell small parts of its empire
to appease critics who argue that its
takeover of British record label EMI
will harm competition.
The 1.2bn deal announced in
November would see Universal behind
49.5 per cent of European music down-
loads and 54 per cent of airplay tracks,
according to a recent report by Impala,
the association of independent music
companies.
With over 4,000 members across
Europe, Impala is leading the charge
that Universals buyout of EMI would
flout competition interests.
Universal are expected to file for
approval from the European
Commission within the next two
weeks, after rival buyer Warner Music
withdrew its bid in late October.
Citigroup saved EMI from its more
than $4bn debt pile by taking the
struggling music company out of Guy
Hands grip last February.
Alongside the sale of EMIs recorded
music arm to Universal, Citigroup will
take over $2bn from a Sony-led consor-
tium for EMIs music publishing wing.
Artists signed to EMI the label
behind Frank Sinatra and The Beatles
currently include Coldplay, Katy
Perry and Kylie Minogue.
Universal could divest to
secure EMI takeover bid
EMI is set to join Universal, which counts Lady Gaga among its artists Picture: REUTERS
BY LAUREN DAVIDSON
ENTERTAINMENT
News
NEWS | IN BRIEF
Costa and captain trade blame
The operators of the Costa Concordia
faced questions over their share of the
blame for the shipwreck, as divers recov-
ered another body from the stricken liner
yesterday, bringing the known death toll
to 13. Captain Francesco Schettino, who
is charged with multiple manslaughter
and abandoning ship, told prosecutors he
had been instructed to perform the
manoeuvre by operator Costa Cruises.
France moots no tax for bonds
Europe's proposal for a tax on financial
transactions would not apply to bonds
issues by governments because states
need to be able to finance themselves,
said Frances finance minister Francois
Baroin yesterday. France plans to plow
ahead with its own transaction tax even
as other European nations are taking
longer to agree on how to implement the
measure.
@
@
@
MORE NEWS
ONLINE
www.cityam.com
THE BOARDROOM drama continues at
pub group Mitchells & Butlers this
week, with all five directors up for re-
election at its AGM in Birmingham on
Thursday.
The AGM follows renewed criticism
of the board by Pirc and the
Association of British Insurers, which
last week raised concerns that M&B is
the only FTSE 350 firm with no inde-
pendent non-executive directors, as
required under corporate governance
guidelines. Non-executive directors
Douglas McMahon and Ron Robson
are representatives of Piedmont, the
vehicle owned by Joe Lewis that has a
25.6 per cent stake in the company
and last September launched an abort-
ed takeover for the company.
Pirc has advised shareholders not to
re-elect the two directors, who are
joined on the M&B board by executive
chairman Bob Ivell, finance director
Tim Jones and company secretary
Doug Evans. Ivell has been leading the
search for a new chief executive to
replace Jeremy Blood, who left in
October, as well as two additional inde-
pendent non-executive directors.
A list of candidates has now been
drawn up, with an announcement to
follow the AGM.
A spokesperson for the pub group
said it did not anticipate any excite-
ment, with the firms board expected
to remain unchanged.
HOW CAN A FINANCIAL INSTITUTION AVOID
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are turning to Certied Financial Risk Managers. Every FRM
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is better qualified to handle the complexities of credit, market,
and operational risks. If you want to help companies improve their nancial vision,
take the rst step by earning your FRM certication. Visit the Global Association
of Risk Professionals (GARP) at garp.org/frm.
Sparks to fly at Mitchells
& Butlers annual meeting
BY HARRIET DENNYS
LEISURE
News
JURY SELECTION BEGINS FOR STANFORD TRIAL
THE long-awaited trial of Allen Stanford, the Texan financier accused of orchestrating a
$7.2bn (4.6bn) Ponzi scheme, begins today with the selection of the jury. While Stanford
was charged in 2009 for Antigua-based fraud operations, he has since remained in cus-
tody throughout several postponements of the trial on claims that, due to a prison brawl
in 2009, he is mentally incapable of standing trial. Picture: REUTERS
REDEMPTION requests by hedge fund
clients have fallen to the lowest
monthly level on record as improving
market sentiment combined with a
typical seasonal lull in asset re-alloca-
tion, data shows.
The GlobeOp Forward Redemption
Indicator, a monthly snapshot of
clients giving notice to withdraw
their cash as a percentage of
GlobeOps assets under administra-
tion, measured 1.85 per cent in the
January report, down from 4.58 per
cent in the December report, which
shows requests to redeem funds in
January, which is typically a period of
heavy re-allocation.
That is the lowest recorded since
the January report in 2008, when
GlobeOp began compiling the index.
January report notifications were
also substantially lower than the
same time last year, when requests
stood at 2.79 per cent.
GlobeOps data covers around eight
to 10 per cent of the global hedge
fund industry. The GlobeOp Forward
Redemption Indicator hit an all-time
high of 19.27 per cent in November
2008 in the wake of the collapse of US
investment bank Lehman Brothers.
Its previous all-time low of 2.08 per
cent was recorded in July 2011.
Hope for hedge funds as client
redemptions fall to a new low
BY HARRY BANKS
ASSET MANAGEMENT
News
HERONS PEAK SIGNS UP TWO NEW TENANTS
PROPERTY tycoon Gerald Ronsons Heron International has leased the first and third floor
of its Peak office development in Victoria to Reed Executive, the recruitment firm and David
Sainsburys Gatsby Charitable Foundation, for 65 per square foot.
BA Olympic mentions by category
Regional News
Topicals
Twitter
Blogs
Other
National News
%
2
40
10
15
5
13
Brought to you by
IN ASSOCIATION with Repskan.com,
the media monitoring and analytics
platform, City A.M. is measuring the rel-
ative Olympic media buzz around the
partners for the London 2012 Olympic
and Paralympic Games, week by week.
The leaderboard, right, reflects their
ranking over the past week, in this case
from Wednesday 11 January to
Wednesday 18 January.
British Airways has
seen a surge in
Olympic-related
media activity with
the announcement that it is about to change
the livery of its aeroplanes to include a
design of a dove. The design, by Pascal
Anson, was developed and created under the
guidance of Tracey Emin. British Airways is
taking advantage of its Olympic sponsorship
to build goodwill within the travel industry
by offering agents the chance to win tickets
to the Olympics. With agents only needing to
make a BA booking to enter the competition,
it is a strategy that could potentially provide
a direct return and recoup some of the
money spent on sponsorship.
Olympic Media Buzz
LONDON 2012 PARTNERS
TOP TEN PARTNERS BY MENTIONS
Brand Position change
Visa 5
Samsung 0
BMW 1
Panasonic 9
British Airways 14
Lloyds TSB 3
BT 2
Coca-Cola 4
Adecco 12
Acer 12
=
THE outgoing owner of Reading FC
has warned against hopes of a spend-
ing spree once he has completed a deal
to sell the club to a Russian tycoon.
Sir John Madejski is locked in due
diligence and expects to finalise a
deal with Thames Sports Investment
(TSI) by the end of March. Yesterday
he claimed the club will retain its
ideology and principles.
There will be a possibility to
strengthen, but only in a sensible
way. It wont be a situation of just
throwing money at something.
Everything we do must be prudent,
he wrote in an open letter to fans.
Madejski refused to name the peo-
ple behind TSI, which is set buy a 51
per cent stake, leaving him as a
minority shareholder, but the group
is widely believed to be led by Anton
Zingarevich, 29, who came close to
investing in Everton in 2004. His
father, Boris, is co-owner of Ilim Pulp,
Russias largest paper producer.
Reading published a statement
from the buyer, which said: TSI aims
to allow the club to retain its best
players and acquire additional players
as the football management team see
fit. It will also enable the club to
expand and further improve its suc-
cessful Academy and scouting opera-
tions.
Madejski will remain as chairman
for at least two years before becoming
life president, TSI added.
DEFENCE giant BAE Systems admitted
yesterday it was considering the
future of its Portsmouth-based war-
ship business, after reports suggested
the dockyard could be closed.
BAE also owns yards where war-
ships are built at Scotstoun and
Govan, both on the river Clyde in
Scotland.
The Portsmouth site employs
around 1,500 workers and the same
again in support roles. Current con-
tracts being fulfilled at the docks
include building parts for two new
British aircraft calendars, named after
the Queen and the Prince of Wales.
A spokesperson said: As part of our
business planning activity, we are
reviewing how best to retain the capa-
bility to deliver and support complex
warships in the UK in the future.
This work is ongoing and we will
keep our employees and trade union
representatives fully informed, as it
progresses.
BAE Systems mulling future of warship
business as part of a strategic review
THE United Arab Emirates cabinet
said yesterday it would liberalise
trade in 12 commodities, saying this
would help market stability.
The 12 items that are being liber-
alised include livestock and dairy
products, fats and oils, honey, eggs,
fruit juices, salt, yeast, animal feed,
detergents and hygiene products,
UAE Economy Minister Sultan bin
Saeed al-Mansouri said.
He said the move would strengthen
the competitiveness of the UAE econ-
omy by curbing monopolistic prac-
tices and avoiding unjustified price
rises.
UAE to liberalise trading
in 12 core commodities
DEFENCE
COMMODITIES
UNLESS a last-minute settlement can

be reached, around 100 bankers will
this week pitch themselves against
Commerzbank, the part state-owned
German lender, in a four-week London
trial over 52m (44m) in unpaid
bonuses.
The row, which returns to court
amid increasing public anger over the
size of bank payouts, will see
Commerzbank chief executive Martin
Blessing clash with former Dresdner
investment bank head Stefan Jentzsch
when it starts on Wednesday.
The legal spat is likely to fan the
flames of public anger at a time when
high inflation, rising job losses and
sharp government spending cuts eat
into the livelihoods of Britons asked to
bail out the banking sector in the 2008
credit crisis. The group of 104 London-
based former Dresdner bankers
launched their legal battle in late 2009
after some were paid only 10 per cent
of the bonuses they had been prom-
ised for 2008 out of a guaranteed min-
imum bonus pool of 400m.
The case hinges on whether
Germanys second-largest bank, which
bought Dresdner in January 2009, was
entitled to slash bonus awards for
some of its staff by invoking a so-called
Mac clause -- a material adverse change
in economic conditions.
Commerzbank, which had to be
bailed out by the German government
after buckling in the credit crisis, has
long argued that discretionary bonus-
es were dependent on the banks per-
formance -- although an attempt to
dismiss the case last year was rejected
by the Court of Appeal.
Court case on bonuses starts
BY HARRY BANKS
BANKING
Reading will
stay prudent,
Madejski says
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News
UNTIL the last few days, Anton
Zingarevich had barely been heard of
in Reading. The Russian is better-
known on Merseyside, however, after
he came close to taking a 40 per cent
stake in Everton in 2004. The deal,
through Fortress Sports Fund, never
materialised, despite Toffees chair-
man Bill Kenwright hailing
Zingarevichs encyclopaedic foot-
ball knowledge. Reading chairman
Sir John Madejski been more
restrained about Zingarevich,
whose father, the Ilim Pulp magnate
Boris, is an associate of Dmitry
Medvedev, the one-term president
widely seen as the puppet of prime
minister Vladimir Putin.
Zingarevich: from
paper millionaire
to new Royal blue
BY PETER EDWARDS
M&A
From Russia with love: cash flowing into London

F
ROM the Kings Road to Royal
Berkshire footballs Russian
revolution looks set to claim
another victory this spring
when Anton Zingarevich pours his
cash into Reading.
The Championship side is small in
comparison to Roman Abramovichs
Chelsea but it is, at least, very near to
London, which remains an affluent
market and the spiritual home to
Russian oligarchs.
This may be part of the reason
Zingarevich pulled back from invest-
ing in Everton in 2004, despite the
Merseyside clubs rich history of nine
league titles and the fairytale goals of
Dixie Dean 90 years ago.
Today the Toffees live in the shad-
ow of Liverpool, having cashed in on
several of their best players, and live
in hope of a new stadium and a new
owner. Reading, by contrast, have
benefited from a ground built only 14
years ago, a period of investment,
albeit modest by football standards,
and a densely packed local popula-
tion who could be tempted through
the door. Its no wonder the Royals
have charmed the Russian.
BOTTOMLINE
Analysis by Peter Edwards
Madejski, left,
is set to sell to
Zingarevich
Picture: PA
Martin Blessings Commerzbank is set for a courtroom clash with bankers over claims of
unpaid bonuses Picture: REUTERS
DID YOU SEE DANIEL?
Like many of the young people who come to
Centrepoint, Daniel is no stranger to being ignored.
When he was a child his stepfather used to tell him
he was in the way and lock him out of the house. His
mother said she wished shed never had him.
My stepfather used to beat me and say that I was
stupid. Once he held me up against the wall and hit me
with a hammer. Daniel recalls.
Daniel left home at 16. He packed his bags and ed to
London where he hoped life would get better.
With no home, Daniel spent all his time walking
around, and spent one night just riding around on
buses. He was cold, grubby, hungry and tired all of
the time. He had nobody to talk to or turn to for help.
Once again he just felt ignored and worthless.
After a while he managed to get into a cheap
bed & breakfast.
The rooms were full of older men doing drugs.
It wasnt a great place to stay so I spent my days
wandering around outside.
While Daniels story may sound shocking to you, many
of the homeless young people who come to Centrepoint
have been through similar experiences. They nd
themselves homeless after being victims of neglect,
violence, sexual abuse and family breakdown.
Once on the street, they immediately face new dangers.
It can take just hours for them to be approached by
drug dealers and pimps.
By sponsoring a room at Centrepoint for
just 40p day (12 a month) you could give
a vulnerable homeless young person like
Daniel a safe place to stay right now.
The Centrepoint room sponsorship scheme offers
homeless young people like Daniel a secure room of
their own for up to two years enough time to turn
their lives around and turn their back on homelessness
for good.
Just think what it will be like for someone like Daniel
when they open the door of the room you sponsor, for
the very rst time.
Your room will contain a warm, soft bed where theyll
be able to sleep soundly, after night after night of
feeling scared in an emergency bed & breakfast or on
the streets. A shower where theyll be able to stand
under steaming hot, soapy water, after day after day of
trudging around in clothes that never feel clean.
And a kitchenette where theyll be able to cook
nutritious meals that will restore them back to health.
Call 0800 13 80 473 or visit
www.centrepointroom.org.uk/cityam3
While staying in your room, the young person youre
helping will receive all the support they need to rebuild
their life. Counseling to deal with their problems, career
advice to help them into college or a job, and basic
life skills, such as how to cook, budget and pay bills.
So, when they leave Centrepoint, they are ready to live
independently. When that time comes, theyll continue to
receive support for as long as they need it.
Today, you can give a homeless young person, who is
being ignored right now, the chance of a new life. All
it will cost you is 40p a day. Because someone like you
responded to an advertisement like this a few months
ago, Daniel is now safe at Centrepoint rather than
homeless and living in fear.
So many people dont give homeless young people
like Daniel a second glance. But today you can be
the person who chooses not to ignore them.
Sponsor a room at Centrepoint by
calling 0800 13 80 473, visiting
www.centrepointroom.org.uk/cityam3
or returning the form below.
Have a look at page 6. Did you see him? Or did you look past him and carry on with your life?
Sponsor a
room just
40p a day
To protect the privacy of those we help, a model has been used for the photograph.
Will you sponsor a Centrepoint room and get a homeless young person off the streets for good?
Full Name
Address
Postcode
Telephone
Please tick this box and complete your details if you would like to receive email communications from Centrepoint
Email
In accordance with the 1998 Data Protection Act, we hold your details to provide you with updates and appeals. If you do not wish
to receive these please contact Centrepoint.
Under the Governments Gift Aid scheme, all donations made
by UK tax payers are worth a quarter more.
I am a UK tax payer and would like Centrepoint to claim back the tax on all donations I have
made for the four years prior to this year, and all donations I make from the date of this
declaration until I notify you otherwise. I understand that I must have paid an amount of income
tax or capital gains tax at least equal to the tax you reclaim on my donations (at least 25p for each
1 donated).
Date / /
I wish to sponsor a room at 12 a month
I wish to sponsor two rooms at 24 a month
I wish to sponsor rooms at a month
Please collect my payment on the 1st/15th of every month (please circle preferred date)
Please return this form to: Centrepoint Room Sponsorship,
Freepost ANG 2640, Colchester CO2 8BR. Thank you
Registered Charity No 292411 RAP1112Z02C
To The Manager: Originators Identication No.
6 5 9 1 0 7
Name and full address of your Bank or Building Society:
Postcode
Name(s) of Account Holder(s)
Bank Sort Code:
-

-
Account Number:
Instructions to your Bank or Building Society: Please pay Centrepoint Direct Debits from the account detailed in this
Instruction, subject to the safeguards assured by the Direct Debit Guarantee. I understand that this instruction may
remain with Centrepoint and, if so, details will be passed electronically to my Bank/Building Society.
Signature(s) Date
Banks and Building Societies may not accept Direct Debit Instructions for some types of account
Instruction to your Bank or Building Society to pay by Direct Debit
Your regular gift will be used to assist young people in sponsored rooms and for the general purposes of Centrepoint working with homeless and socially excluded young people.
RAP1112Z02C
What youll receive as a Centrepoint
room sponsor
A viituul iecieuticn c ycui iccm cnline thut ycu
can log into using personal login details.
A plun c ycui iccm und incimuticn uhcut the
young person staying in it, through the post.
Regului updutes uhcut hcv the ycung peiscn's
life is changing.
lncimuticn uhcut the nev peiscn mcving in,
when the young person currently occupying your
room moves on.
If youd like to sponsor more than one room,
please do. The more rooms you sponsor, the more
young lives youll change.
NEWS CORP has reportedly joined
the queue of potential bidders for
Sabah-ATV, the Turkish media set
which has already garnered the
attention of Time Warner.
Comprising daily newspaper
Sabah and television station ATV,
Turkeys second largest media
group currently belongs to Calik
Holding, the Turkish corporation
led by Berat Albayrak the Turkish
prime ministers son in law.
According to people familiar
with the matter, Calik extended
the deadline for bids, which was
originally last Wednesday, to make
room for News Corps application.
Other parties interested are said
to include entertainment giant
Time Warner, European broad-
caster RTL Group and private equi-
ty companies TPG Capital and KKR
& Co.
Speculation has valued Sabah-
ATV between $700m and 1bn
(449m and 642m), although this
figure could climb if the big bid-
ders go head to head.
Calik Holding bought Sabah-
ATV from the Turkish government
in a $1.1bn deal which prompted
controversy when it went through
in late 2007 due to a lack of rival
bidders and a loan of $750m from
two banks.
The Turkish media has likewise
provoked contention due to the
concentration of ownership
among large private companies,
which some say leads to a limited
representation of views.
The winner of the bid for Sabah-
ATV would therefore find itself in
a powerful position.
In February 2011 Turkey intro-
duced legislation to allow foreign
investors to own stakes of up to 50
per cent twice the previous
threshold in up to two Turkish
broadcasters.
This change in rule prompted an
attempted sale by Dogan Yayin,
Turkeys largest media corpora-
tion, which fell through. Some
have predicted the same outcome
for Sabah-ATV.
A News Corp spokesperson
declined to comment.
Calik is being advised by
Goldman Sachs.
News Corp eyes bid
for media in Turkey
BY LAUREN DAVIDSON
MEDIA
SOCIALIST challenger Francois

Hollande, front-runner in the race
to unseat French President Nicolas
Sarkozy, declared war on the world
of finance yesterday in a speech to
25,000 supporters, three months
before the presidential election.
The address, attended by Socialist
Party top-brass and some showbiz
celebrities, was more an exercise in
presidential style than substance.
Without announcing any new
election proposals, the man who
hopes to unseat Sarkozy on 6 May
did not mention his conservative
rival by name during a 90-minute
speech designed to burnish his
image as a head of state in waiting,
and confirm to any doubters that he
is an unrepentant left-winger.
In the battle ahead, my main
adversary has no name, no face and
no party. He will never run as a can-
didate. He will never be elected, but
he rules in spite of all that. My
adversary is the world of finance,
Hollande said to a standing ovation
in a packed conference hall on the
northern outskirts of Paris.
Stock options would be banned,
big bonus payouts strictly limited
and laws introduced to separate tra-
ditional retail bank business from
risky investment banking if voters
made Hollande the first Socialist
president in 17 years, since the late
Francois Mitterrand.
Hollande, a mainstream social
democrat who is under pressure
from within his own camp to adopt
a tougher tone, was addressing the
first of a dozen big political rallies
being organised on the way into an
ballot that takes place in two
rounds, with an opening vote on 22
April and the runoff on 6 May.
French would-be president Hollande
slams world of finance in key speech
POLITICS
News
NEWS | IN BRIEF
Anti-Davos protesters charged
Swiss police will charge more than 100
demonstrators with breaching the peace
after they rallied in Bern to protest
against the World Economic Forum that
holds its annual meeting in Davos this
week. The protesters, some wearing
masks, began an unauthorised demon-
stration but were stopped by police in
Bern, 270 km west of the Davos ski
resort.
EU to propose tough web rules
The European Union will propose tough
new rules in the coming days on how
corporations handle internet users per-
sonal data, a long-awaited move that
could have far-reaching implications for
web giants such as Google and
Facebook. Viviane Reding, vice president
of the European Commission, said yes-
terday that the new data-protection leg-
islation was needed to protect users and
cut red tape for businesses in Europe.
"Only if consumers trust that their data
is protected will they entrust companies
with it ... We need individuals to be in
control of their information," Reding said
at the DLD conference of tech industry
leaders in Munich. But Reding also
emphasised a need to simplify Europes
approach to online data protection,
arguing that the current system was too
cumbersome and costly for business.
Europes new data-protection rules are
expected to be issued on 25 January.
Volvo CEO Stefan Jacoby (l), pictured with Zheijiang Geely chairman Li Shufu and Volvo
China chairman Freeman Shen(r), wants a development partner Picture: REUTERS
VOLVO Cars is hunting for a partner to
share in the development of its com-
pact models.
Chief executive Stefan Jacoby, who
took the helm at the Swedish brand
when Volvo was bought by Chinas
Zhejiang Geely for $1.8bn (1.16bn) in
2010, said a partnership would make
sense for the relatively small carmak-
er to find economies of scale.
Volvo has already entered into a
deal with Germanys Siemens elec-
tronics to cooperate on electric car
technology.
But Jacoby, who aims to increase
global sales from the current level of
450,000 a year to 800,000 by 2020,
said further collaboration would be a
boost for the company.
Volvo spokesman Duncan Forrester
told City A.M.: No decision has been
made but we are open for partners.
The firms current C30 small car is
based on technology developed by its
former owner Ford Motor.
Volvo is set to launch a new com-
pact car, the V40, at the Geneva Motor
Show in March. The new car will
replace the Volvo S40 and V50 models
but Volvo has not yet said where or
how it would make it.
Volvo is not the only brand looking
to pair up with other carmakers in a
bid to economise.
Daimler is working with Renault
and Nissan in areas including small
cars.
Jacoby, who is also president of the
carmaker, has vowed to cut costs by
simplifying Volvos operations,
including cutting the number of
engine types from 10 to two, with one
version each in petrol and diesel.
Volvo hunting for
partner to develop
compact vehicles
BY JENNY FORSYTH
MOTORING
Bank of Ireland
Patrick Haren and Kent Atkinson have
been appointed as non-executive direc-
tors of Bank of Ireland. Atkinson was
group finance director of Lloyds TSB
Group for eight years between 1994
and 2002. Haren is a former chief exec-
utive of the Viridian Group, and led the
privatisation of Northern Ireland
Electricity in 1993.
Oriel Securities
Oriel Securities has strengthened its
retail team by appointing Harry Philips
as an industrials analyst, Rob Ellis as
industrials specialist salesman and Guy
Brown as an aerospace and defence
analyst. The team will move across from
Evolution in February.
Kingsley Napley
The City law firm has appointed
Caroline DeLaney as a partner in the dis-
pute resolution department, focusing on
real estate disputes. She has spent the
last 20 years of her career at CMS
Cameron McKenna, where she spe-
cialised in real estate.
Eversheds
Former HSBC banker Victoria Read has
joined Eversheds as a banking partner in
its London office. Read originally trained
as a solicitor at Linklaters before joining
RBS as a banker and then HSBC as a
director in loans syndicate.
Salans
The law firm has promoted Smeetesh
Kakkad to London office managing part-
ner. Kakkad joined Salans in 2000 and
became a partner in the firms dispute
resolution group in 2005, specialising in
commercial litigation and arbitration.
Pictet Asset Management
Pictet asset management business has
hired Alain Caffort as a senior invest-
ment manager in the small cap equity
team, based in Geneva. Caffort joins
from Groupama Asset Management,
where he was responsible for small and
mid-cap European equity portfolios.
Hawkpoint
Peter Kiernan has been appointed as a
vice chairman at Hawkpoint. Kiernan
was most recently a managing director
and head of UK investment banking at
Lazard. Prior to that, he was a manag-
ing director at both Goldman Sachs
and UBS Warburg.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Petrofac
1,550
1,500
1,450
1,400
1,350
1,300
Nov Dec Jan
p
1,440.00
20 Jan
PETROFAC
JP Morgan downgrades the oil services group to neutral with a target price
of 1,699p, despite seeing good potential for a margin upside to balance any
shortfall in revenue from its order intake and project progress. The broker
says the $8bn (5.14bn) of orders it has estimated as necessary to meet
consensus forecasts for next year now look aggressive, and so sees a risk of
valuation compression in the stock over the next few months.
ANALYSIS l Bankinter SA
5.25
5.00
4.75
4.50
4.25
4.00
3.75
Nov Dec Jan
5.20
20 Jan
BANKINTER SA
Citigroup rates the Spanish bank as sell/high risk but increases its target
price from 3 to 3.40 after its quarterly profits last week. Though net profit
of 34m was three per cent below consensus and down 27 per cent quarter-
on-quarter, the company delivered on its full-year target of growing profits by
20 per cent over 2011. The broker updates its estimates to account for higher
specific provisions, higher net interest income and other costs.
ANALYSIS l L'Oreal SA
82
80
78
76
Nov Dec Jan
81.06
20 Jan
LOREAL
Morgan Stanley downgrades the French cosmetics group to equal-weight
with a target price of 87 (72), seeing an acceleration in earnings growth
at the company as unlikely over the coming year. The broker says LOreal
faces another year of modest top- and bottom-line growth with tough mar-
kets and high investment. Though it sees the valuation as attractive versus
its peers, Morgan Stanley sees few catalysts to re-rate the stock.
Kentz Corporation
The FTSE 250 engineering group has
announced that Christian Brown (pictured)
will replace Hugh ODonnell as chief executive
on 1 February. Brown steps up from the role of
group chief operating officer, while ODonnell,
who has led Kentz since 2000, will continue as
an exclusive adviser to the group for the next
three years. Additionally, Rory ODonnell, for-
merly group head of development, takes up a
new job as group officer strategy and M&A,
responsible for strategy and acquisitions.
News
WALL STREET WEEK AHEAD
S
TOCKS rising, bulls rampant are
motifs you might pick if design-
ing a coat of arms for Wall Street
at the moment. But the motto
should read: Caveat emptor. Yes,
buyer beware.
The S&P 500, a broad measure of
the market valuation of the biggest
US publicly traded companies, is up
20 per cent from its October closing
low. It keeps climbing on fourth-quar-
ter earnings, improving US economic
data, and easing credit conditions in
Europe. It now stands at its highest
level since early last August.
We have already seen what is prob-
ably the first upgrade of a target level
for the index this year courtesy of
Credit Suisse.
The CBOE Volatility Index , or VIX, a
measure of what investors are paying
to protect themselves against the risk
of losses, is at its lowest level in seven
months.
So it raises the question: Is this
another Jackson Hole moment for
risk assets? At the Wyoming retreat in
late August 2010, Federal Reserve
Chairman Ben Bernanke sparked the
second major leg of the stock mar-
kets rally from bear market lows the
year before. Is this the start of the
third?
For Andrew Garthwaite, the Credit
Suisse analyst behind the firms more
bullish stance (it raised its year-end
S&P 500 target to 1,400 from 1,340)
there are big changes afoot. First, the
European Central Banks long-term
repo operations are succeeding in
reducing stresses in the regions
banking sector. Last week, three-
month dollar Libor, the cost at which
European banks can borrow dollars,
marked its ninth day of declines.
Analysts say heavy cash infusions
from the European Central Bank
since late last year and signs of
revived willingness to lend by US
investors in the new year show the
banking system is flush with cash.
The US economy is looking
stronger than thought, with notable
movement in the housing market,
where sales of previously owned
homes just rose to an 11-month high.
A blitz of earnings and economic
indicators this week will provide an
important gauge of the economys
health. The Federal Reserves policy-
makers will convene their first meet-
ing of the year with a two-day session
starting tomorrow. The Federal Open
Market Committee, the Feds rate-set-
ting panel, will release its policy state-
ment on Wednesday. No fireworks are
expected, but a decision to release
individual policymakers interest-rate
forecasts could alter expectations for
rates on the margins.
GERMAN airline Lufthansa has moved
a step closer to selling its bmi Regional
and bmibaby brands, the parts of the
business that were not included in the
sale of their parent company to IAG
last year.
Lufthansa has found a buyer for
bmi Regional, which operates from
airports including Aberdeen,
Edinburgh, Glasgow, Leeds Bradford
and Manchester, and is close to nam-
ing a preferred bidder for bmibaby,
the discount unit that flies across
Europe.
With bmi Regional we have con-
cluded an agreement with a UK based
investor group which is subject to cer-
tain pre-conditions which are to be
fulfilled, a bmi group spokesperson
said in a statement.
With respect to bmibaby there are
several interested parties and we are
in the process of identifying the pre-
ferred buyer and aim to conclude a
purchase agreement as soon as possi-
ble, the spokesperson added. The
company declined to name any of the
interested parties.
British Airways owner IAG agreed
to buy bmi from Lufthansa in a
172.5m deal last December, but said
at the time it had no interest in the
regional brands.
It warned at the time that the price
could be significantly reduced if a sale
was not agreed before the completion
of the deal, which should go through
before the end of this quarter.
The progress will be welcome news
to Lufthansa investors, with analysts
previously admitting they were scepti-
cal that a buyer for the businesses
could be found.
At the time of the deal in late
December, IAG chief executive Willie
Walsh put Lufthansaa chances of sell-
ing bmibaby at just 50/50.
Lufthansa closer to
sale of BMI Regional
BY MARION DAKERS AND ELIZABETH
FOURNIER
AVIATION
Lufthansa has moved closer to selling its bmi brands Picture: REUTERS
T
HERE is no downside to the wonderful
reality that human beings are now living
longer than ever before. While many
assume that societys economic burden
radically increases with greater longevity, the
reality is the opposite. Everyone is better off
because of longer life expectancies.
For example, in 1850, life expectancy in the
United States was 43 years. Today it is close to
eighty. Thats almost a doubling of lifetime,
but its not just life that has extended, there
has also been an extension of health spans. Yes,
there have always been people who made it
past 65 years in the past, but the difference
today is that there are many more of them and
they are in much better shape than ever before.
In the United States, a National Long-Term
Care Survey found that chronic disability
among older Americans has dropped dramati-
cally, and the rate of decline has accelerated
during the past two decades. Clearly, the old
are no longer quite so old and new technolo-
gies will accelerate that trend. Biology has now
become an engineering project. Just as com-
puter programs consist of 1s and 0s, the
human body also has a code which is made up
of the A,C,T, and Gs of DNA. Human genome
sequencing is becoming exponentially cheaper
each year, and top-notch scientists are working
on reverse engineering the human body
through gene therapy and other techniques.
One of the most promising methods to
extend health today goes by the name of tissue
engineering, which offers the ability to build
new organs for those that have worn down,
using a patients own adult stem cells. Already,
scientists have grown and successfully trans-
planted human organs, such as bladders and
windpipes, for patients in need. Human hearts
and lungs have not been completed yet, but
promising work in lab animals suggests it will
be possible in the near term. Once there exists
a large enough parts list, doctors will be able to
keep patients healthy by replacing parts as
they wear down, somewhat similar to how vin-
tage cars are kept in tip top shape well past
their expected lifetimes.
But how will greater health spans impact the
economy? The answer is that we will be richer
as we live longer. That is because as health
spans extend, each individual can be produc-
tive for a longer period of time. Detailed eco-
nomic research shows this to be true.
For instance, University of Chicago econo-
mists Kevin Murphy and Robert Topel have cal-
culated that, for Americans, gains in life
expectancy over the century were worth over
$1.2m per person to the current population.
They also found that from 1970 to 2000, gains
in life expectancy added about $3.2 trillion per
year to national wealth. These enormous num-
bers represent a spectacular accomplishment
in terms of benefits. But aside from what life is
valued at, it is also the case that real income
grows with greater longevity.
Harvard economist David Bloom and
Queens University economist David Canning
show that if there are two countries that are
identical in all respects, except that one has a 5
year advantage in life expectancy, then the
real income per capita in the healthier coun-
try will grow 0.3-0.5 per cent per year faster
than in its less healthy counterpart. While
these percentages might look small, they are
actually quite significant, especially when one
considers that between the years of 1965 to
1990, countries experienced an average per
capita income growth of 2 per cent per year.
When countries only have an average growth
of 2 per cent, an advantage of 0.5 per cent is
quite the boost.
Now, those numbers are based only on a five
year longevity advantage. What if a country
had a 10, 20, or 30 year advantage? The growth
may not continue on a linear basis, but if the
general rule holds a jump in life expectancy
causes an increase in economic growth per
capita then having a longer-lived population
would facilitate enormous differences in eco-
nomic prosperity. This helps to explain why
there is a movement among some academics
and activists to urge the US Congress to spend
more on anti-ageing research in order to create
what they call a longevity dividend.
Regenerative technologies such as tissue
engineering, personalised medicine, nanotech-
nology, and gene therapy hold the potential for
ushering in much longer and healthier lives,
making it imperative that we press ahead with
these innovations and the sooner, the better.
Longer lives allow for more education, more
careers, more ambition, and importantly, more
productivity. The benefits of greater health are
not only measured in greater happiness, but
also on the bottom line. Businesses should be
doing everything in their power to make the
longevity revolution happen faster they cant
afford not to.
Sonia Arrison is author of 100 Plus: How the
Coming Age of Longevity Will Change Everything,
From Careers and Relationships to Family and Faith.
She is also a Trustee at the California-Based
Singularity University.
24
The Forum
Biology has now become a
major engineering project
with revolutionary potential
New technologies that will
allow us to live even longer
will pay economic dividends
cityam.com/forum
SONIA ARRISON
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.
25
Fair competition
is the only way to
sharpen up the
rating market
Ratings agencies
wont be trusted
without a fight
T
HE Big Three rating agencies hardly
seem to be out of the news with their
ability to move markets. Following
Standard & Poors (S&P) decision to
reduce its assessment of the health of Frances
sovereign debt by one notch to AA+ from AAA
status, top German politicians like Michael
Fuchs and others have jumped on the agency-
bashing bandwagon berating them for
inconsistent ratings.
The big agencies were heavily criticised in
the wake of the credit crisis for giving vehicles
like collateralised debt obligations (CDO) triple
A ratings, largely based on the strength of the
underlying financial institution issuing the
debt. Olli Rehn, an EU commissioner, slammed
S&Ps recent move to downgrade the EFSF
bailout fund by one notch, branding the agen-
cies as being the tools of American financial
capitalism. Strong stuff.
How big a deal was the downgrade? AA+ and
AAA-rated securities differ very little in their
yields, usually by only 10 basis points (0.1 per
cent) on average. But its all about perception.
According to Moodys, another of the Big
Three, the average cumulative issuer-weighted
global default rates from 1920-2009 (excluding
Asset-Backed Securities and muni/local govern-
ment bonds) indicated that over a one year
period AAA rated debt exhibited a 0.00 per
cent rate of default, versus a 0.07 per cent rate
of default for AA rated debt. Over five and 10-
year periods the historical default rate increas-
es to 0.72 per cent and 2.22 per cent,
respectively.
More concerning is whether the market,
investors and subscribers can rely on the agen-
cies ratings. Various examples over recent
years illustrate just how far behind the curve
S&P, Moodys and Fitch were.
Collectively, the three agencies control 97-98
per cent of the entire ratings market and 90
per cent of all revenues. Other agencies do
exist: nine firms are now registered with the
US SEC as nationally-recognised statistical rat-
ing organisations (NRSRO).
Unsurprisingly, the dominant players resist
changes to their business model, based on an
issuer-pays model. By contrast, some rivals
such as Rapid Ratings, an agency headquar-
tered in New York, espouse a subscriber-pays
model. They are also not remunerated by the
issuer of the debt/entity they are rating.
Rapid was the first agency to signal prob-
lems with MF Global, the now defunct US bro-
ker, as far back as May 2009. This was some 30
months before the broker filed for bankruptcy
late and years before the big boys noticed. It
appears not to be a fluke. Rapid made early
calls on US housebuilders, an early signal of
the sub-prime crisis, and provided forward-
looking alerts on Bear Stearns, Enron,
Parmalat, Ford and US Steel.
Silly proposals made recently by the EUs
financial market watchdog Esma to ban rat-
ings on a state or nation at certain critical
times would restrict the analysis available
and would merely fuel any crisis of confidence.
The real issue is that the market needs insight-
ful and actionable ratings and that means a
level playing field for all agencies to encourage
real, genuine competition.
Roger Aitken is an associate analyst with bench-
marking firm BISS Research and a former RNS editor
at the London Stock Exchange. www.bissresearch.com
Informal channels
Dionysios Demetis makes a
good point [Tracking Money
Laundering Matters,
Wednesday] very little terror-
ist funding goes through the
conventional banking system.
Most of the cross-border
financing is via the hawala or
informal money transfer sys-
tem, especially to and from the
Indian sub-continent. The UK
authorities are well aware of
this but do almost nothing to
crack down on the trade for
fear of being accused of cutting
off a cheap remittance chan-
nel, especially to Pakistan.
Estimates from the UK alone
are of 3bn each year in remit-
tances through travel agents
and similar high street shops.
Closing this channel and
encouraging legal channels
whose pricing is undercut by
these operators might do a
great deal to halt gun-running,
drugs and terrorist financing.
Martin Jaskel
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
ROGER AITKEN
BY DAVID WOOTTON
The Forum
H
AVING just
returned to
this country
after leading a
senior City delega-
tion to Turkey, I am
currently on an
equally important
business visit to six
of our own major cities across the United
Kingdom.
At first glance, it may seem to some that
promoting the City in my hometown of
Bradford where I am today and in Istanbul
last week appear to be completely different
jobs.
That could not, however, be further from
the case. The audiences are, of course, differ-
ent but the messages and key objectives
remain the same, in Bradford and Istanbul.
We can after all only promote UK business
overseas if we have a strong domestic base
from which to do so.
A wide range of UK firms joined me for my
visit to Turkey, and this included a number of
Welsh representatives, which involvement fol-
lowed my visit to Cardiff late last year. It
should not be forgotten that the City brand
encompasses the whole spectrum of locations
and businesses.
One of the key objectives of my year in
office is to reaffirm and strengthen the con-
nections that tie the capital to other parts of
the country and the City to other parts of the
economy.
As both a Yorkshireman and the Lord Mayor
of the City of London, I know that the success
of different regions and sectors is interde-
pendent even if this is not always how it is
perceived by others.
Critics often argue that London is treated as
a special case but it seems to me that in the
current economic environment we should
cherish its success story output per head
now standing at 171 per cent of the national
average rather than as a stick to beat us
with. If London does well, the UK benefits and
vice versa.
The argument that Londons success some-
how perpetuates differences around the coun-
try fails to take into account the volume of
business that flows from London across the
UK.
A job in London is not at the expense of a
worker in Liverpool or Llandaff or Livingston.
It is far more likely to leave an economic foot-
print that benefits the whole supply chain
right across the country.
The City accounts for 1.7m jobs across the
UK more than two thirds of which are out-
side of Greater London. Manchester where I
will be travelling to tomorrow is home to
210,000 alone. Jobs and growth in both cities
and many others beyond are inextricably
linked.
The recent debate on how to rebalance the
economy is a vital one but it should not degen-
erate into an argument about how to hobble a
particular region or industry for the sake of
equality. To do so would mean we are all
equally poorer an outcome we can all agree
is undesirable.
David Wootton is Lord Mayor of the City of
London.
Londons success is the
whole countrys gain
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
A
MONG the many gloomy predictions
for the coming year, what really
catches the eye is the one that says
the world will end on 21 December
2012. This is, debatably, the prognosis of the
Mayan calendar of eschatology. If the world
were really to end on that date, one suspects
it would come as a relief to some. I, for exam-
ple, would not then be required to write an
outlook for 2013. Theres comfort in small
mercies.
For starters, then, I am going to go out on
a limb here and predict that the world will
not actually end in 2012. Not because I have
any particular insight into the likelihood of
this happening or not happening. Only
because its a no downside bet or, should I
say, a no further downside bet. If Im wrong,
at least I wont be mocked on the trading
floor on 22 December 2012.
Before you write this off as too optimistic,
let us say that the list of risks for risky assets
this year is almost endless. It ranges across
political risk, repression risk, debasement
risk, liquidation risk, valuation risk, defla-
tion risk, inflation riskyou fill in the
blanks.
Against this catalogue of misery, though,
are several positives that should not be over-
looked, and it is upon these that this article
will focus. As an old mentor used to say, if
you have a contrarian bone in your body, you
have to be smelling blood for the consensus
view today, so pervasive has it become.
So, what could possibly go right for risky
assets over the next year? We would list the
following positives, potential or real:
US EXPANSION
The US economy could gain traction
and enter an expansion. This would be led
by the labour market, which has been show-
ing signs of life lately. If private sector job cre-
ation gathered steam, banks may not have to
shrink their loan books as much as the con-
sensus expects.
CHINA BUOYANT
China may not have a hard landing.
Chinese bank stocks and other cyclicals are
trading at valuations that suggest that a
hard landing is close to inevitable. In our
opinion, this is more to do with capital
flight out of China than with any reasonable
assessment of likely near-term economic
conditions. Domestic investors might get
interested in Chinese equities again if the
authorities were to lower the very high
reserve requirement for the big five banks,
and this process has already started.
GLOBAL EASING
Every major central bank in the world
could buy sovereign bonds; a sort of global
quantitative easing (QE). This is not as far-
fetched as it may sound. The UK is already
engaged in QE2. Arguably the three year
long term refinancing operation (LTRO) was
backdoor QE from the European Central
Bank. We expect an even larger LTRO at the
end of February, and outright QE some time
in the second quarter, on the assumption
that growth forecasts fall during the first
quarter. Most people expect the Federal
Reserve to initiate QE3 sometime in the sec-
ond quarter. Plus, if the Chinese economy
slows much more it can only be a matter of
time before a transition-focussed political
elite authorises the monetary authorities to
ease substantially.
Wealth Management | Personal Finance
At least world wont end in 2012
INVESTMENT COMMENT
BEN FUNNELL
European financials equity
should continue to struggle.
A consensus view, but given
the amount of recapitalisation that we
expect, existing equity holders should
suffer substantial further dilutions as
banking systems are increasingly
nationalised across Europe, much as
many UK listed banks were after
2008.
Against this, one would
expect European financial
credit to get attractive, on
exactly the same basis. As equity is
diluted and re-capped, credit starts to
look much more appealing.
Value stocks should start to
be rewarded, as many equi-
ties offer substantially better
credit risk than government bonds.
Value stocks have hugely underper-
formed (by 11 per cent last year on
our measure) and recently hit new
post-2008 crisis lows.
Equally, structural growth
stocks should re-rate. That
sounds like having your cake
and eating it, but its really a barbell,
being long extreme value (outside
financials) and stable, structural
growth. As Morgan Stanley strategists
have pointed out, true growth stocks
With the right wind,
China might even stay
afloat
THE YEAR AHEAD
But are risky assets really cheap enough?
Sadly, the short answer is no. If you will only
buy risky equities when they offer a margin
of safety sufficient to tempt the likes of
Benjamin Graham (the first proponent of
value investing), then you wouldnt dream of
buying the S&P today. Equally, I cant imagine
that Graham would begin to countenance
most risk-free assets at this juncture. And if
we had to guess which assets he would be
inclined towards, Id bet a lot that hed lean a
long way towards risk, and away from safety.
On the best long-term measure of value
for equity markets, the Shiller price-earnings
(PE) ratio, the S&P 500 trades on a multiple of
21 times, far above the very long run average
of 16.5 times. The great equity bull markets
have started from a PE of 5-8 times. So the US
is far from cheap. Elsewhere, though, value is
emerging. Europe now trades on a Shiller PE
of 12 times. So at least we can say that if
European equities were to fall another 33 per
cent to a Shiller PE of 8 times, they would be
extremely, once in a lifetime, cheap.
But while we are some way from those
mouth-wateringly cheap levels that excite
pure value investors at the index level, there
is no shortage of very cheap stocks. One
measure we watch closely is valuation disper-
sion how widely dispersed are single stock
valuations which is a kind of fear gauge.
The gap between the 25th and 75th per-
centile stock ranked on price/book in Europe
has narrowed from close to a record in the
last quarter of 2011, but is still much wider
than average. In other words, the premium
that is being paid for safety is wide compared
to the discount that is demanded for cyclical-
ity and leverage.
Ben Funnell is chief equity strategist at Man GLG.
1
1
2
3
should do very well in what could be
an extended range-bound stock mar-
ket, just as the so-called Nifty Fifty
did in the late 60s and early 70s in
the US.
Avoid certain defensives,
notably telecoms, utilities
and (currently) pharma. All look
cheap, but all in our view, have struc-
tural issues that will continue to
depress earnings.
Finally, trying to guess the
level of an equity index
twelve months hence seems a more
than usually unproductive exercise,
so I wont try. Simply, it is unlikely
that we are starting a new breakout
into a bull market, but markets will
likely follow the direction of growth
expectations and growth mini-cycles,
while generally remaining range-
bound.
It is also highly likely that at some
point in the first half of the year it
becomes apparent that most, or all
major, central banks in the world are
about to engage in another round of
quantitative easing, and that should
promote a rally in risk assets that is
not to be missed. Whether it works
for the longer term is another
matter.
Ben Funnell
2
3
4
5
6
EU SHARES
AIR LIQUIDE...............98.06 -0.81 100.65 80.90
ALLIANZ .....................83.95 0.61 108.85 56.16
ANHEUS-BUSCH INBEV47.90-0.20 48.63 33.85
ARCELORMITTAL......16.25 -0.12 28.55 10.47
AXA .............................11.92 0.25 16.16 7.88
BANCOSANTANDER ..5.91 0.02 9.00 4.94
BASF SE .....................58.39 -0.62 70.22 42.19
BAYER.........................53.52 -0.68 59.44 35.36
BBVA.............................6.76 0.01 9.17 4.94
BMW............................63.59 0.63 73.85 43.49
BNP PARIBAS ............35.33 0.63 59.93 22.72
CARREFOUR..............17.00 -0.27 31.98 14.66
CRH PLC.....................16.10 -0.10 17.40 10.28
DAIMLER ....................41.96 0.52 58.55 29.02
DANONE .....................47.50 0.55 53.16 41.92
DEU.BOERSE OFFRE42.02 -0.45 55.75 35.46
DEUTSCHE BANK......32.51 0.03 48.70 20.79
DEUTSCHE TELEKOM 8.82 -0.12 11.38 7.88
E.ON............................16.23 -0.06 25.54 12.50
ENEL .............................3.06 -0.02 4.86 2.78
ENI ...............................17.17 -0.03 18.66 11.83
FRANCE TELECOM ...11.47 -0.08 16.65 11.12
GDF SUEZ...................21.13 -0.27 30.05 17.65
GENERALIASS. .........12.12 -0.21 17.05 10.34
IBERDROLA .................4.56 -0.07 6.10 4.16
INDITEX.......................66.93 0.76 69.40 50.92
INGGROEP CVA..........6.98 -0.20 9.50 4.21
INTESA SANPAOLO.....1.38 0.02 2.47 0.85
KON.PHILIPS ELECTR15.21 0.24 25.28 12.01
L'OREAL .....................81.06 -1.29 91.24 68.83
LVMH.........................120.55 0.35 132.65 94.16
MUNICH RE ................98.57 0.52 126.00 77.80
NOKIA...........................4.35 -0.04 8.49 3.33
REPSOL YPF ..............21.65 -0.49 24.90 17.31
RWE.............................26.94 -0.73 55.69 21.15
SAINT-GOBAIN...........33.89 -0.69 47.64 26.07
SANOFI .......................55.52 -0.45 57.42 42.85
SAP .............................44.00 -0.04 46.15 32.88
SCHNEIDER ELECTRIC48.20 -0.37 61.83 35.00
SIEMENS.....................78.05 -0.30 99.39 62.13
SOCIETE GENERALE21.01 0.91 52.70 14.32
TELECOMITALIA.........0.83 0.00 1.16 0.70
TELEFONICA..............13.36 -0.13 18.75 12.50
TOTAL .........................39.85 -0.59 44.55 29.40
UNIBAIL-RODAMCOSE146.502.60 162.95 123.30
UNICREDIT ...................3.31 -0.05 12.06 2.20
UNILEVER CVA ..........25.26 0.06 27.16 20.90
VINCI ...........................36.77 -0.07 45.48 28.46
VIVENDI ......................16.09 0.01 22.07 14.10
VOLKSWAGEN VORZ134.50 -1.05 152.20 86.40
Price Chg High Low Price Chg High Low
WORLDINDICES
US SHARES
3M.................................85.65 -0.15 98.19 68.63
ABBOTT LABS............55.76 0.33 56.84 45.07
ALCOA.........................10.17 -0.01 18.47 8.45
ALTRIA GROUP...........28.70 0.09 30.40 23.20
AMAZON.COM...........190.93 -3.52 246.71 160.59
AMERICAN EXPRESS 50.04 -0.91 53.80 41.30
AMGEN INC.................69.57 0.43 69.63 47.66
APPLE........................420.30 -7.45 431.37 310.50
AT&T.............................30.51 0.09 31.94 27.20
BANK OFAMERICA......7.07 0.11 14.95 4.92
BERKSHIRE HATAWB79.91 0.32 87.65 65.35
BOEING CO.................75.52 -0.04 80.65 56.01
BRISTOL MYERS SQUI32.65 -0.06 35.44 20.05
CATERPILLAR...........105.64 -0.11 116.55 67.54
CHEVRON..................106.89 -0.04 110.99 86.68
CISCOSYSTEMS ........19.92 0.13 22.34 13.30
CITIGROUP..................29.64 0.31 49.60 21.40
COCA-COLA................68.09 0.64 71.77 61.29
COLGATE PALMOLIVE89.00 -0.97 94.89 74.86
CONOCOPHILLIPS .....71.20 -0.07 81.80 58.65
CVS/CAREMARK ........42.77 -0.11 43.17 31.30
DU PONT(EI)DE NMR.49.42 0.02 57.00 37.10
EXXON MOBIL.............87.49 0.46 88.23 63.47
GENERAL ELECTRIC .19.15 0.00 21.65 14.02
GOOGLE A.................585.99 -53.58 670.25 473.02
HEWLETTPACKARD..28.13 0.98 49.39 19.92
HOME DEPOT..............44.51 -0.90 45.50 28.13
IBM.............................188.52 8.00 194.90 151.71
INTEL CORP................26.38 0.75 26.78 19.16
J.P.MORGAN CHASE..37.36 0.43 48.36 27.85
JOHNSON & JOHNSON65.27 0.08 68.05 57.50
KRAFTFOODS A ........38.67 -0.03 38.84 24.30
MC DONALD'S CORP101.74 0.48 102.22 72.89
MERCK AND CO.NEW39.20 -0.06 39.43 29.47
MICROSOFT ................29.71 1.59 29.74 23.65
OCCID.PETROLEUM100.37 0.51 117.89 66.36
ORACLE CORP ...........28.71 0.15 36.50 24.72
PEPSICO......................66.28 0.37 71.89 58.50
PFIZER.........................21.90 0.06 22.17 16.63
PHILIP MORRIS INTL..74.52 0.74 79.96 56.16
PROCTER AND GAMBLE66.230.15 67.72 56.57
QUALCOMMINC.........57.73 -0.27 59.84 45.98
SCHLUMBERGER.......73.80 0.94 95.64 54.79
TRAVELERS CIES.......61.59 1.29 64.17 45.97
UNITED TECHNOLOGIE76.69-0.50 91.83 66.87
UNITEDHEALTH GROUP52.27-0.05 54.18 39.37
VERIZON COMMS.......38.97 -0.03 40.48 32.28
WAL-MARTSTORES...61.01 0.40 61.25 48.31
WALTDISNEY CO.......39.31 -0.13 44.34 28.19
WELLS FARGO& CO .30.54 0.39 34.25 22.58
FTSE 100 . . . . . . . . . . . . . . 5728.55 -12.60 -0.22
FTSE 250 INDEX . . . . . . . 10825.93 17.63 0.16
FTSE UK ALL SHARE ....2954.79 -4.61 -0.16
FTSE AIMALL SH . . . . . . . . 754.29 1.00 0.13
DOWJONES INDUS 30 ..12720.48 96.50 0.76
S&P 500 . . . . . . . . . . . . . . . 1315.38 0.88 0.07
NASDAQCOMPOSITE ...2786.70 -1.63 -0.06
FTSEUROFIRST300 .....1043.06 -3.24 -0.31
NIKKEI 225 . . . . . . . . . . . . . 8766.36 126.68 1.47
DAX 30PERFORMANCE..6404.39 -11.87 -0.18
CAC 40 . . . . . . . . . . . . . . . . 3321.50 -7.44 -0.22
SHANGHAISE INDEX ....2319.12 23.04 1.00
HANG SENG. . . . . . . . . . . 20110.37 167.42 0.84
S&P/ASX 20INDEX ......2542.80 9.10 0.36
ASX ALL ORDINARIES ...4303.00 24.40 0.57
BOVESPA SAOPAOLO..62312.13 385.44 0.62
ISEQOVERALL INDEX ...3005.69 -31.38 -1.03
STRAITS TIMES . . . . . . . . . 2849.38 38.18 1.36
IGBM. . . . . . . . . . . . . . . . . . . 874.79 1.65 0.19
SWISS MARKETINDEX...6122.67 -71.78 -1.16
Price Chg %chg Price Chg %chg Price Chg %chg
LONGDONCEFIXAM.............................................1646.00 -18.00
SILVERLDNFIXAM ....................................................31.02 0.47
MAPLELEAF1OZ ......................................................34.73 1.61
LONPLATINUMAM .................................................1507.00 -30.00
LONPALLADIUMAM.................................................668.00 -2.50
ALUMINIUMCASH...................................................2180.50 6.50
COPPERCASH........................................................8350.00 194.50
LEADCASH.............................................................2131.00 39.50
NICKELCASH........................................................19670.00 215.00
TINCASH ..............................................................21975.00 425.00
ZINCCASH ..............................................................2011.00 14.00
BRENTSPOTINDEX..................................................111.40 0.10
SOYA .......................................................................1197.00 13.50
COCOA....................................................................2320.00 55.00
COFFEE ....................................................................226.65 1.80
KRUG ......................................................................1719.10 -2.00
WHEAT ......................................................................158.12 0.38
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 ...........................................................0.284 0.00
LIBOR Euro - 12 months..........................................................1.777 -0.01
LIBOR USD - overnight ............................................................0.144 0.00
LIBOR USD - 12 months ..........................................................1.109 0.00
HaIifax mortgage rate...............................................................3.990 0.00
Euro Base Rate.........................................................................1.500 0.00
Finance house base rate .........................................................1.500 0.00
US Fed funds ............................................................................0.250 0.00
US Iong bond yieId...................................................................3.100 0.04
European repo rate ..................................................................0.208 0.00
Euro Euribor .............................................................................0.433 0.00
The vix index.............................................................................18.28 -1.52
The baItic dry index..................................................................862.0 -64.0
Markit iBoxx............................................................................241.76 -2.27
Markit iTraxx ...........................................................................149.89 -11.65
BAE Systems . . . . . .313.7 0.0 356.5 248.1
Chemring Group. . . .448.7 -11.3 736.5 368.8
Cobham . . . . . . . . . . .194.4 2.2 236.5 165.9
Meggitt . . . . . . . . . . . .370.6 -3.7 397.6 304.9
QinetiQ Group. . . . . .135.0 0.8 137.4 101.5
RoIIs-Royce Group. .735.5 0.5 769.0 557.5
Senior. . . . . . . . . . . . .185.3 4.5 190.6 132.6
UItra EIectronics . . .1535.0 -34.0 1830.0 1305.0
GKN . . . . . . . . . . . . . .211.7 -1.4 245.0 157.0
BarcIays. . . . . . . . . . .222.7 1.3 333.6 138.9
HSBC HoIdings. . . . .542.3 5.9 730.9 463.5
LIoyds Banking Gr . . .32.7 0.4 69.3 21.8
RoyaI Bank of Sco . . .27.4 0.4 49.0 17.3
Standard Chartere .1565.0 6.0 1712.5 1169.5
AG Barr . . . . . . . . . .1244.0 15.0 1395.0 1031.0
Britvic. . . . . . . . . . . . .345.3 4.2 465.0 289.9
Diageo . . . . . . . . . . .1393.0 12.0 1428.0 1112.0
SABMiIIer. . . . . . . . .2329.5 36.5 2354.5 1979.0
AZ EIectronic Mat . . .285.6 -8.1 338.1 206.1
Croda Internation . .1937.0 -7.0 2081.0 1456.0
EIementis. . . . . . . . . .150.4 0.4 187.4 107.5
Johnson Matthey . .2066.0 -24.0 2119.0 1523.0
Victrex . . . . . . . . . . .1252.0 -2.0 1590.0 1025.0
YuIe Catto & Co. . . . .200.0 0.0 253.0 148.0
C/$ 1.2934 0.0033
C/ 0.8304 0.0069
C/ 99.634 0.3664
/C 1.2043 0.0099
/$ 1.5576 0.0089
/ 119.98 0.5481
FTSE100
5728.55
12.60
FTSE250
10825.93
17.63
FTSEALL SHARE
2954.79
4.61
DOW
12720.48
96.50
NASDAQ
2786.70
1.63
S&P500
1315.38
0.88
RPC Group . . . . . . . .388.3 8.3 388.3 231.5
Smiths Group . . . . . .989.5 -9.0 1429.0 869.5
Brown (N.) Group . . .230.8 -1.2 304.5 227.0
Carpetright . . . . . . . . .560.5 12.5 801.0 375.0
Debenhams . . . . . . . . .65.9 1.9 74.8 51.2
Dignity . . . . . . . . . . . .823.5 6.0 854.5 648.5
Dixons RetaiI . . . . . . .13.5 -0.1 22.3 9.4
DuneImGroup. . . . . .457.8 -0.3 524.5 383.9
HaIfords Group . . . . .313.0 1.8 416.0 268.6
Home RetaiI Group. .100.5 -1.5 235.0 72.5
Inchcape . . . . . . . . . .344.0 -0.7 425.4 268.1
JD Sports Fashion . .707.0 -7.5 1030.0 570.0
Kesa EIectricaIs . . . . .71.5 -1.5 151.4 60.2
Kingfisher . . . . . . . . .260.3 2.2 287.1 217.0
Marks & Spencer G. .334.7 7.7 402.2 301.8
Next . . . . . . . . . . . . .2657.0 28.0 2810.0 1868.0
Sports Direct Int . . . .235.0 1.0 266.2 159.0
WH Smith. . . . . . . . . .536.0 1.5 558.0 433.8
Smith & Nephew. . . .608.5 9.0 742.0 521.0
Synergy HeaIth . . . . .874.0 0.5 981.0 808.0
Barratt DeveIopme . .111.6 -1.7 119.0 67.5
BeIIway. . . . . . . . . . . .747.0 3.0 776.5 540.5
BerkeIey Group Ho.1280.0 -16.0 1360.0 884.5
BaIfour Beatty . . . . . .287.4 -0.8 357.3 214.6
CRH . . . . . . . . . . . . .1332.0 -8.0 1700.0 1053.0
GaIIiford Try. . . . . . . .476.5 -8.8 530.0 307.5
Kier Group. . . . . . . .1364.0 -16.0 1458.0 1097.0
Drax Group . . . . . . . .532.0 1.5 581.5 371.9
SSE. . . . . . . . . . . . . .1251.0 6.0 1423.0 1159.0
Domino Printing S . .580.0 30.0 705.0 434.3
HaIma . . . . . . . . . . . . .355.4 1.2 429.6 306.3
Laird . . . . . . . . . . . . . .163.5 1.0 207.0 127.9
Morgan CrucibIe C . .303.8 1.4 357.1 224.0
Oxford Instrument . .922.0 -12.0 1010.0 600.5
Renishaw. . . . . . . . .1092.0 -16.0 1886.0 800.0
Spectris . . . . . . . . . .1522.0 -35.0 1679.0 1039.0
Aberforth SmaIIer . . .549.0 5.5 714.0 494.0
AIIiance Trust . . . . . .358.5 -1.7 392.7 310.2
Bankers Inv Trust . . .413.8 -3.2 428.0 346.5
BH GIobaI Ltd. GB .1180.0 -10.0 1212.0 1058.0
BH GIobaI Ltd. US. . . .11.8 -0.1 12.2 10.4
BH Macro Ltd. EUR. . .19.9 -0.1 20.2 16.3
BH Macro Ltd. GBP 2052.0 -3.0 2084.0 1661.0
BH Macro Ltd. USD. . .20.0 0.0 20.2 16.2
BIackRock WorId M .696.0 -4.0 815.5 574.5
BIueCrest AIIBIue . . .166.3 -0.1 176.2 162.4
British Assets Tr . . . .122.6 -0.4 139.5 109.0
British Empire Se . . .437.3 -2.2 533.0 404.0
CaIedonia Investm .1463.0 12.0 1872.0 1337.0
City of London In . . .288.1 -2.1 306.9 257.0
Dexion AbsoIute L . .139.4 0.6 151.0 130.0
Edinburgh Dragon . .236.0 0.6 252.0 201.4
Edinburgh Inv Tru. . .482.8 -5.0 492.2 414.9
EIectra Private E . . .1458.0 -29.0 1755.0 1287.0
F&C Inv Trust . . . . . .300.1 0.3 327.9 261.5
FideIity China Sp. . . . .79.4 -0.2 114.3 70.0
FideIity European . .1058.0 3.0 1287.0 912.0
HeraId Inv Trust. . . . .483.8 0.4 545.5 419.0
HICL Infrastructu. . . .117.5 -0.2 121.3 112.7
Impax Environment .100.2 0.7 125.9 88.5
John Laing Infras . . .109.4 -0.1 109.5 103.4
JPMorgan American.913.0 -1.0 916.0 721.5
JPMorgan Asian In . .198.5 0.7 244.0 170.1
JPMorgan Emerging.553.5 -5.0 610.5 480.1
JPMorgan European.700.0 3.5 983.5 624.0
JPMorgan Indian I. . .364.0 -2.5 459.0 313.1
JPMorgan Russian .519.0 -6.0 741.0 415.1
Law Debenture Cor. .350.0 -1.3 385.0 321.0
MercantiIe Inv Tr . . . .938.0 3.0 1137.0 823.0
Merchants Trust . . . .375.2 -1.9 431.8 341.5
Monks Inv Trust . . . .316.5 -3.0 367.9 298.1
Murray Income Tru . .634.5 -2.0 673.0 568.0
Murray Internatio . . .953.0 -4.5 991.5 818.5
PerpetuaI Income . . .262.4 -1.4 276.0 236.5
PersonaI Assets T .33960.0-130.0 34100.030210.0
PoIar Cap TechnoI . .338.5 0.7 391.2 299.5
RIT CapitaI Partn. . .1241.0 2.0 1360.0 1173.0
Scottish Inv Trus. . . .479.3 -0.9 524.0 417.0
Scottish Mortgage . .650.0 -5.0 781.0 565.0
SVG CapitaI . . . . . . . .223.0 3.0 279.8 165.1
TempIe Bar Inv Tr . . .892.0 8.0 952.0 791.0
TempIeton Emergin .594.0 0.0 684.5 497.0
TR Property Inv T . . .152.1 -1.5 206.1 136.2
TR Property Inv T . . . .64.5 0.3 94.0 59.8
Witan Inv Trust . . . . .468.0 2.9 533.0 401.5
3i Group. . . . . . . . . . .186.4 4.9 319.7 166.9
3i Infrastructure . . . .120.2 0.0 124.0 113.1
Aberdeen Asset Ma .233.8 7.7 240.0 167.8
Ashmore Group . . . .359.1 2.2 420.0 301.5
Brewin DoIphin Ho . .146.0 -0.5 185.4 113.7
CameIIia. . . . . . . . . .9525.0 -76.010950.0 8800.0
CharIes TayIor Co. . .140.9 2.4 165.0 115.6
City of London Gr . . . .64.5 0.0 93.6 61.3
City of London In . . .347.9 15.9 450.0 304.3
CIose Brothers Gr. . .670.0 11.5 875.0 590.0
CoIIins Stewart H . . . .94.0 1.0 94.5 48.5
F&C Asset Managem .65.5 0.0 91.5 56.1
Hargreaves Lansdo .443.5 -5.3 646.5 402.5
HeIphire Group . . . . . . .1.8 -0.0 17.4 1.4
Henderson Group . . .116.2 2.6 173.1 95.1
Highway CapitaI . . . . .12.0 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .335.7 13.1 559.0 311.6
IG Group HoIdings . .480.9 2.4 502.5 393.6
Intermediate Capi . . .278.6 5.1 354.7 197.9
InternationaI Per . . . .194.0 7.0 388.8 148.5
InternationaI Pub. . . .118.9 0.0 121.5 108.6
Investec . . . . . . . . . . .380.0 5.4 522.0 318.4
IP Group. . . . . . . . . . . .77.8 1.8 82.8 32.7
Jupiter Fund Mana . .221.8 4.6 337.3 184.9
Liontrust Asset M . . . .76.6 0.0 87.5 57.9
LMS CapitaI . . . . . . . . .57.0 0.0 64.8 51.0
London Finance & . . .23.5 0.0 23.5 19.0
London Stock Exch .880.0 -3.5 1076.0 756.5
Lonrho . . . . . . . . . . . . .11.3 -0.3 19.8 8.9
Man Group. . . . . . . . .121.2 1.7 311.0 104.5
Paragon Group Of . .179.4 1.4 206.1 134.6
Provident Financi . . .999.0 -19.0 1124.0 915.0
Rathbone Brothers .1122.0 -38.0 1257.0 977.0
Record . . . . . . . . . . . . .12.3 -0.3 35.8 12.1
RSM Tenon Group . . . .8.3 0.4 66.3 7.6
Schroders . . . . . . . .1461.0 24.0 1906.0 1183.0
Schroders (Non-Vo.1202.0 10.0 1554.0 970.0
TuIIett Prebon . . . . . .302.4 2.5 428.6 262.3
WaIker Crips Grou . . .45.0 0.0 51.5 43.5
BT Group . . . . . . . . . .205.5 2.4 207.6 161.0
CabIe & WireIess . . . .40.7 -0.1 51.2 31.3
CabIe & WireIess . . . .17.9 1.1 76.9 14.2
COLT Group SA . . . . .93.1 -0.5 156.2 84.1
KCOM Group. . . . . . . .67.8 -1.3 84.0 57.5
TaIkTaIk TeIecom . . .123.9 0.5 161.5 119.8
TeIecomPIus. . . . . . .685.0 -10.0 802.0 440.0
Booker Group . . . . . . .74.0 1.7 80.0 54.5
Greggs . . . . . . . . . . . .511.0 1.5 550.5 445.0
Morrison (Wm) Sup .293.8 2.7 328.0 262.7
Ocado Group. . . . . . . .87.7 7.6 285.0 52.9
Sainsbury (J) . . . . . . .290.6 2.7 391.2 263.5
Tesco . . . . . . . . . . . . .329.0 2.0 420.1 312.4
Associated Britis. . .1154.0 -5.0 1183.0 940.0
Cranswick . . . . . . . . .748.0 17.5 862.0 588.5
Dairy Crest Group. . .321.8 -1.0 409.7 315.0
Devro . . . . . . . . . . . . .264.5 0.5 296.9 223.5
Tate & LyIe. . . . . . . . .675.0 -7.0 720.5 520.0
UniIever . . . . . . . . . .2047.0 6.0 2189.0 1793.0
Mondi . . . . . . . . . . . . .504.5 -4.5 664.0 413.5
Centrica . . . . . . . . . . .283.3 -0.1 345.8 278.8
InternationaI Pow . . .319.1 -8.7 436.6 279.4
NationaI Grid . . . . . . .618.5 1.0 649.5 539.0
Pennon Group. . . . . .693.0 1.0 737.5 584.5
Severn Trent . . . . . .1532.0 3.0 1600.0 1368.0
United UtiIities . . . . .599.5 -1.0 637.0 543.5
Cookson Group . . . . .570.5 4.5 724.5 395.8
DS Smith . . . . . . . . . .233.7 3.7 266.2 164.4
Rexam . . . . . . . . . . . .378.5 3.6 400.0 299.8
Price Chg High Low
Bovis Homes Group.466.5 -2.1 499.6 326.5
Persimmon . . . . . . . .521.0 -0.5 534.0 374.0
Reckitt Benckiser . .3410.0 11.0 3578.0 3015.0
Redrow. . . . . . . . . . . .120.8 -1.9 136.2 103.5
TayIor Wimpey . . . . . . .42.0 -1.8 44.0 28.7
Bodycote . . . . . . . . . .304.4 0.8 397.7 225.6
Fenner . . . . . . . . . . . .444.0 -5.7 462.0 280.0
IMI . . . . . . . . . . . . . . . .877.5 2.5 1119.0 636.5
MeIrose . . . . . . . . . . .369.6 2.6 372.6 268.0
Northgate. . . . . . . . . .217.0 4.5 346.7 190.9
Rotork . . . . . . . . . . .1908.0 -37.0 1979.0 1501.0
Spirax-Sarco Engi. .1962.0 16.0 2063.0 1649.0
Weir Group . . . . . . .1954.0-125.0 2218.0 1375.0
Evraz . . . . . . . . . . . . .431.6 -3.9 435.5 315.0
Ferrexpo. . . . . . . . . . .331.0 -9.0 499.0 238.7
TaIvivaara Mining . . .357.0 -1.3 622.0 195.2
BBAAviation . . . . . . .192.0 0.9 240.8 156.0
Stobart Group Ltd. . .120.6 0.6 163.6 112.0
AdmiraI Group. . . . . .888.5 9.5 1754.0 787.0
AmIin . . . . . . . . . . . . .350.5 3.1 427.0 270.6
BeazIey. . . . . . . . . . . .138.9 1.7 139.9 109.6
Informa. . . . . . . . . . . .388.8 2.5 461.1 313.9
ITE Group. . . . . . . . . .216.9 0.7 258.2 157.7
ITV. . . . . . . . . . . . . . . . .75.5 1.5 93.5 51.7
Johnston Press. . . . . . .5.9 -0.3 12.8 4.1
MecomGroup . . . . . .223.8 2.5 310.0 134.5
Moneysupermarket. .115.8 1.1 120.4 84.8
Pearson . . . . . . . . . .1233.0 3.0 1255.0 1013.0
PerformGroup . . . . .250.0 0.0 250.0 150.0
Reed EIsevier . . . . . .531.0 3.5 590.5 461.3
Rightmove . . . . . . . .1298.0 -5.0 1408.0 785.0
STV Group. . . . . . . . .102.0 3.9 168.0 76.3
Tarsus Group . . . . . .139.0 0.0 165.0 119.5
Trinity Mirror . . . . . . . .46.5 -0.8 89.5 37.5
UBM . . . . . . . . . . . . . .542.5 8.5 725.0 416.0
UTV Media . . . . . . . . .108.8 4.8 150.0 92.5
WiImington Group . . .84.0 0.0 183.0 81.8
WPP . . . . . . . . . . . . . .745.0 -3.0 846.5 578.0
YeII Group . . . . . . . . . . .5.2 -0.2 12.3 3.4
African Barrick G . . .469.5 5.4 616.5 393.5
AIIied GoId Minin . . .159.0 -1.7 281.3 34.4
AngIo American . . .2660.0 12.5 3437.0 2138.5
AngIo Pacific Gro . . .282.4 -5.6 369.3 237.9
Antofagasta. . . . . . .1338.0 -26.0 1524.0 900.5
Aquarius PIatinum . .182.0 -2.3 419.0 149.0
BHP BiIIiton. . . . . . .2125.5 -33.0 2631.5 1667.0
CatIin Group Ltd.. . . .411.3 -5.7 421.4 334.0
Hiscox Ltd. . . . . . . . . .390.1 0.2 424.7 340.5
Jardine LIoyd Tho. . .695.5 5.0 764.5 576.0
Lancashire HoIdin . . .700.5 -18.5 774.5 532.5
RSA Insurance Gro. .108.2 0.0 143.5 99.6
Aviva. . . . . . . . . . . . . .350.9 8.9 477.9 275.3
LegaI & GeneraI G. . .116.9 1.4 123.8 89.8
OId MutuaI . . . . . . . . .147.1 0.4 147.6 98.1
Phoenix Group HoI . .558.0 0.5 688.0 451.1
PrudentiaI . . . . . . . . .694.0 -6.0 777.0 509.0
ResoIution Ltd. . . . . .270.8 -0.1 316.1 229.5
St James's PIace. . . .350.2 2.2 376.0 281.0
Standard Life. . . . . . .213.7 4.4 244.7 172.0
4Imprint Group . . . . .264.0 2.5 295.0 200.0
Aegis Group . . . . . . .152.0 -0.8 158.5 115.7
BIoomsbury PubIis. .105.3 2.3 138.0 91.3
British Sky Broad . . .671.5 5.0 850.0 618.5
Centaur Media. . . . . . .34.6 0.6 73.0 32.5
Chime Communicati.185.5 -0.5 298.5 163.0
Creston . . . . . . . . . . . .66.9 -1.3 121.0 65.5
DaiIy MaiI and Ge . . .435.1 6.5 594.5 343.4
Euromoney Institu . .689.5 4.5 736.0 522.5
Future. . . . . . . . . . . . . .10.0 0.9 30.0 8.3
Haynes PubIishing . .220.0 0.0 257.0 210.0
Huntsworth . . . . . . . . .33.0 0.3 83.0 32.3
Bumi . . . . . . . . . . . . . .881.0 0.00 921.0 871.0
Centamin (DI) . . . . . . . .92.0 -1.0 154.2 78.5
Eurasian NaturaI . . .738.5 -11.0 1076.0 522.0
FresniIIo. . . . . . . . . .1725.0 -43.0 2150.0 1296.0
GemDiamonds Ltd. .201.0 -1.5 306.0 179.8
GIencore Internat . . .423.1 -7.0 531.1 348.0
HochschiId Mining . .500.0 6.1 680.0 365.9
Kazakhmys . . . . . . .1123.0 10.0 1631.0 730.0
Kenmare Resources. .48.0 -1.6 59.9 31.0
Lonmin. . . . . . . . . . .1032.0 3.0 1880.0 941.0
New WorId Resourc .475.0 2.5 1060.0 409.4
PetropavIovsk . . . . . .689.5 -8.5 1090.0 543.5
PoIymetaI Interna . .1096.0 -6.0 1154.0 877.0
RandgoId Resource 7055.0-120.0 7555.0 4425.0
Rio Tinto . . . . . . . . .3684.5 -43.5 4712.0 2712.5
Vedanta Resources.1146.0 51.0 2518.0 928.0
Xstrata . . . . . . . . . . .1078.0 -11.5 1550.0 764.0
Inmarsat . . . . . . . . . . .403.6 -3.3 719.5 389.3
Vodafone Group . . . .177.1 2.6 182.8 155.1
Genesis Emerging . .489.4 0.2 548.5 424.0
Afren. . . . . . . . . . . . . .124.6 -2.2 171.2 73.6
BG Group. . . . . . . . .1457.0 -33.0 1564.5 1144.0
BP. . . . . . . . . . . . . . . .467.5 -15.0 497.5 363.2
Cairn Energy . . . . . . .290.6 -1.9 469.7 257.8
EnQuest . . . . . . . . . . .105.0 -2.4 158.5 85.7
Essar Energy . . . . . .122.5 2.5 543.0 114.0
ExiIIon Energy. . . . . .256.7 -1.8 469.7 184.2
Heritage OiI . . . . . . . .187.2 -4.8 439.6 160.0
Ophir Energy. . . . . . .294.6 -5.5 318.8 184.5
Premier OiI. . . . . . . . .430.1 4.7 535.0 310.0
RoyaI Dutch SheII . .2253.5 -29.0 2402.0 1883.5
RoyaI Dutch SheII . .2329.5 -38.0 2489.0 1890.5
SaIamander Energy .248.3 5.2 317.6 182.3
Soco Internationa . . .294.8 -0.1 400.0 278.0
TuIIow OiI . . . . . . . . .1361.0 -22.0 1493.0 945.5
Amec . . . . . . . . . . . . .990.0 -7.0 1251.0 740.5
Hunting . . . . . . . . . . .822.5 -10.5 838.0 530.0
Kentz Corporation . .440.0 -20.0 508.0 347.0
LampreII . . . . . . . . . . .292.6 0.6 395.2 220.7
Petrofac Ltd. . . . . . .1440.0 -64.0 1612.0 1108.0
Wood Group (John) .658.5 -26.5 715.8 469.9
Burberry Group. . . .1355.0 3.0 1600.0 1030.0
PZ Cussons. . . . . . . .316.0 -3.0 387.9 308.7
Supergroup . . . . . . . .644.0 -31.5 1820.0 435.2
AstraZeneca . . . . . .3037.5 -32.5 3194.0 2543.5
BTG . . . . . . . . . . . . . .317.6 2.0 331.3 210.1
Genus. . . . . . . . . . . .1050.0 -4.0 1111.0 853.5
GIaxoSmithKIine. . .1438.5 1.0 1497.0 1127.5
Hikma Pharmaceuti .731.0 6.0 895.0 555.5
Shire PIc. . . . . . . . . .2121.0 -44.0 2243.0 1634.0
CapitaI & Countie . . .189.4 -0.1 203.7 142.8
Daejan HoIdings . . .2800.0 25.0 2954.0 2282.0
F&C CommerciaI Pr .103.5 -0.1 108.0 92.6
Grainger . . . . . . . . . . .103.9 -0.2 133.2 77.3
London & Stamford .108.0 -0.1 140.0 103.9
SaviIIs. . . . . . . . . . . . .322.9 -3.1 427.1 256.2
UK CommerciaI Pro . .74.8 -0.5 85.5 65.1
Unite Group. . . . . . . .177.6 3.6 224.1 152.9
Big YeIIow Group . . .276.8 7.5 344.4 218.0
British Land Co. . . . .495.9 5.9 629.5 444.0
CapitaI Shopping . . .330.1 5.9 408.6 288.7
Derwent London . . .1699.0 24.0 1880.0 1400.0
Great PortIand Es . . .359.4 -13.5 445.0 312.9
Hammerson. . . . . . . .390.4 6.1 490.9 345.2
Hansteen HoIdings. . .76.2 0.3 89.5 68.0
Land Securities G. . .691.0 11.5 885.0 612.0
SEGRO. . . . . . . . . . . .219.4 7.2 331.3 195.0
Shaftesbury. . . . . . . .507.0 8.8 539.0 436.8
Aveva Group . . . . . .1589.0 18.0 1799.0 1298.0
Computacenter . . . . .379.3 -5.4 490.0 324.7
Fidessa Group. . . . .1678.0 -2.0 2109.0 1444.0
Invensys. . . . . . . . . . .200.6 0.6 357.8 180.9
Logica . . . . . . . . . . . . .79.6 0.4 147.2 59.0
Micro Focus Inter . . .455.0 18.0 458.7 242.9
Misys . . . . . . . . . . . . .310.0 17.9 420.2 214.9
Sage Group . . . . . . . .304.8 -1.2 307.8 231.7
SDL. . . . . . . . . . . . . . .692.0 0.0 711.5 586.0
TeIecity Group. . . . . .655.0 16.0 672.0 433.0
Aggreko . . . . . . . . . .2089.0 4.0 2131.0 1394.5
Ashtead Group . . . . .225.7 -4.5 232.5 99.4
Atkins (WS) . . . . . . . .683.5 2.5 820.0 490.2
Babcock Internati . . .753.0 -5.0 766.0 542.0
Berendsen . . . . . . . . .450.0 18.4 568.0 402.7
BunzI . . . . . . . . . . . . .865.5 0.0 906.5 676.5
Cape . . . . . . . . . . . . . .386.0 1.5 591.5 295.0
Capita. . . . . . . . . . . . .649.0 12.0 786.5 611.5
CariIIion . . . . . . . . . . .328.0 3.4 403.2 281.0
De La Rue . . . . . . . . .954.0 -3.5 965.0 667.0
DipIoma . . . . . . . . . . .395.0 11.4 414.3 263.5
EIectrocomponents .216.0 -2.1 294.9 182.2
Experian. . . . . . . . . . .890.5 -12.0 909.0 665.0
FiItrona PLC . . . . . . . .391.6 -3.0 404.5 273.1
G4S. . . . . . . . . . . . . . .271.4 1.8 291.0 219.9
Hays . . . . . . . . . . . . . . .72.2 2.4 130.0 58.9
Homeserve . . . . . . . .310.0 1.9 532.0 218.5
Howden Joinery Gr. .108.8 0.7 127.5 93.1
Interserve. . . . . . . . . .310.0 -1.8 341.3 239.8
Intertek Group. . . . .2135.0 -10.0 2162.0 1715.0
MichaeI Page Inte . . .401.9 7.3 567.0 323.0
Mitie Group . . . . . . . .265.5 1.5 271.0 195.9
PayPoint. . . . . . . . . . .576.5 -8.5 586.5 327.3
Premier FarneII . . . . .205.9 2.1 308.8 144.5
Regus. . . . . . . . . . . . . .89.2 0.5 119.0 64.0
RentokiI InitiaI . . . . . . .75.0 0.8 104.7 58.2
RPS Group. . . . . . . . .205.8 -0.7 253.0 156.6
Serco Group . . . . . . .514.0 -2.0 618.5 458.0
Shanks Group. . . . . . .99.5 1.0 130.9 90.8
SIG . . . . . . . . . . . . . . .105.1 5.6 153.5 77.0
Travis Perkins . . . . . .883.5 7.5 1090.0 715.0
WoIseIey . . . . . . . . .2238.0 -12.0 2269.0 1404.0
ARM HoIdings . . . . . .575.5 -5.0 651.0 464.0
CSR . . . . . . . . . . . . . .226.0 1.5 447.0 154.1
Imagination Techn . .571.0 4.5 575.5 296.9
Spirent Communica .125.4 0.4 160.0 105.8
British American . .2922.0 24.5 3079.0 2282.5
ImperiaI Tobacco . .2253.0 32.0 2444.0 1784.0
Betfair Group. . . . . . .845.0 10.0 1030.0 567.0
Bwin.party Digita . . .159.3 -5.3 205.9 100.6
CarnivaI . . . . . . . . . .1989.0 -28.0 3000.0 1742.0
Compass Group . . . .613.5 0.5 619.5 512.5
Domino's Pizza UK. .460.0 6.2 549.0 377.0
easyJet. . . . . . . . . . . .422.5 1.0 422.6 301.0
FirstGroup . . . . . . . . .303.6 -2.7 391.2 301.8
Go-Ahead Group. . .1320.0 12.0 1598.0 1190.0
Greene King . . . . . . .512.0 -8.5 521.0 410.0
InterContinentaI . . .1317.0 10.0 1435.0 955.0
InternationaI Con . . .167.6 2.1 285.0 132.0
JD Wetherspoon. . . .414.8 6.9 468.3 380.5
Ladbrokes . . . . . . . . .139.9 2.0 155.3 114.0
Marston's. . . . . . . . . . .94.6 0.9 112.0 84.6
MiIIennium& Copt . .438.8 16.3 600.5 371.2
MitcheIIs & ButIe. . . .270.5 9.4 357.0 215.6
NationaI Express . . .224.2 -2.6 270.2 201.6
Rank Group . . . . . . . .128.0 -2.0 153.7 109.5
Restaurant Group. . .297.1 2.4 335.0 254.9
Spirit Pub Compan . . .48.0 1.5 55.0 35.3
Stagecoach Group . .278.5 0.8 281.2 200.0
TUI TraveI. . . . . . . . . .196.8 6.8 271.9 136.7
Whitbread . . . . . . . .1663.0 0.0 1863.0 1409.0
WiIIiamHiII. . . . . . . . .225.0 2.0 244.1 176.8
Abcam . . . . . . . . . . . .343.0 1.0 460.0 316.0
Advanced MedicaI . . .90.0 -0.3 96.0 64.8
AIbemarIe & Bond . .347.6 -0.4 400.1 272.0
Amerisur Resource . .18.8 -0.5 29.0 9.5
Andor TechnoIogy . .574.0 -25.0 685.0 387.1
ArchipeIago Resou. . .70.0 0.0 79.0 55.5
ASOS . . . . . . . . . . . .1772.0 12.0 2468.0 1142.0
AureIian OiI & Ga . . . .16.8 0.5 92.0 16.0
Avanti Communicat .289.0 1.5 628.0 248.5
BIinkx . . . . . . . . . . . . . .71.0 -0.5 158.0 50.5
Borders & Souther . . .71.3 0.8 72.3 43.5
BowLeven . . . . . . . . . .82.0 -0.8 382.3 62.0
Brooks MacdonaId .1130.0 -5.0 1372.5 940.0
Cove Energy . . . . . . .135.0 -1.8 138.8 61.0
Daisy Group . . . . . . .101.5 -0.3 127.0 88.0
EMIS Group . . . . . . . .437.5 11.5 580.0 425.3
Faroe PetroIeum. . . .161.8 -2.3 210.0 130.0
GuIfsands PetroIe. . .176.5 0.5 361.5 142.5
GWPharmaceuticaI . .93.3 4.8 130.0 78.5
H&T Group. . . . . . . . .345.0 1.0 395.0 277.0
Hamworthy . . . . . . . .825.0 2.0 833.5 406.3
Hargreaves Servic .1146.0 1.0 1180.0 818.0
HeaIthcare Locums . . . .3.4 -0.1 3.4 3.3
Immunodiagnostic . .356.0 -44.0 1218.0 356.0
ImpeIIamGroup . . . .236.5 1.5 387.5 195.0
James HaIstead. . . . .447.5 7.5 495.0 390.0
KaIahari MineraIs . . .243.0 0.5 301.0 198.3
London Mining . . . . .257.5 -27.5 436.5 255.8
Lupus CapitaI . . . . . .128.0 3.5 150.0 86.0
M. P. Evans Group . .444.1 1.1 475.0 371.0
Majestic Wine . . . . . .398.8 -1.3 510.0 315.0
May Gurney Integr . .283.5 -2.5 302.0 234.0
Monitise . . . . . . . . . . . .29.5 -0.3 40.0 18.5
MuIberry Group. . . .1641.0 56.0 1920.0 1065.0
Nanoco Group. . . . . . .54.5 0.5 95.5 38.0
NauticaI PetroIeu . . .318.0 -5.5 547.0 223.5
NichoIs. . . . . . . . . . . .615.0 15.0 615.0 410.0
Numis Corporation. . .97.5 -3.5 126.0 72.0
Pan African Resou . . .15.0 -0.3 17.0 9.5
Patagonia GoId . . . . . .44.5 -0.8 70.0 37.3
Prezzo . . . . . . . . . . . . .67.4 1.4 71.5 53.5
Pursuit Dynamics . . .100.0 1.3 410.0 67.0
Rockhopper ExpIor .322.5 -4.8 386.0 141.0
RWS HoIdings. . . . . .450.0 -2.5 481.6 328.0
Secure Trust Bank . .900.0 0.0 910.0 755.0
Songbird Estates . . .110.5 -2.5 160.3 104.0
VaIiant PetroIeum . . .419.0 -6.3 672.0 400.0
Young & Co's Brew. .647.5 -22.5 712.0 565.0
OcadoGroup........87.7 9.4
CabIe&WireIessW ..17.9 6.3
Misys .............310.0 6.1
SIG ...............105.1 5.6
DominoPrintingSc .580.0 5.5
VedantaResources.1146.0 4.7
Berendsen .........450.0 4.3
MicroFocusIntern ..455.0 4.1
ICAP..............335.7 4.1
MiIIennium&Copth .438.8 3.9
WeirGroup .......1954.0 -6.0
Supergroup ........644.0 -4.7
KentzCorporation ..440.0 -4.4
PetrofacLtd. ......1440.0 -4.3
TayIorWimpey.......42.0 -4.1
WoodGroup(John) .658.5 -3.9
GreatPortIandEst ..359.4 -3.6
RathboneBrothers .1122.0 -3.3
Bwin.partyDigitaI ...159.3 -3.2
KenmareResources..48.0 -3.2
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k k i N
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Wealth Management | Markets
0.0129
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0.0002
J
OHN, Jeremy and Joan had a plan. A
good plan. A plan to start a business.
They were so sure that the business
would succeed that each used
100,000 of their own money to fund the
start-up costs and take the inevitable losses
until they turned the corner into profit.
Their hunch was right, and with time and
hard work the business did succeed. So
Philip Salter talks to
Will Dean, a Harvard
MBA with a difference
THE BEST LAID
PLANS OF SOME
ENTREPRENEURS
CLAIRE
MADDEN
M
OST students dont even consider
setting up a business, but at uni-
versity Will Dean founded an
alternative graduation t-shirt
company to compete with UK universities
offerings. He later took near-monopolistic
control of the global supply of antique
Bollywood posters. But this was small fry
compared to his current company: Tough
Mudder.
After finishing university he worked on
counterterrorism for the Foreign Office,
but realised he saw his future self owning
and running his own business. His next
step was to take an MBA at Harvard. Despite
reaching the final 10 of Harvards presti-
gious Business Plan Contest, Dean didnt
get the experience he wanted: Business
school is basically
finance school 99
per cent of people
dont come out of
Harvard and start
their own business,
which surprised me.
Being in the US
was useful for devel-
oping his ideas,
though: As a Brit in
the states, I was
uniquely posi-
tioned to find
things that were
working in Europe
and bring them to
the US. He notes, upon observing the
Europeanisation of lifestyles in the US for
example, cycling, cafes and fashion that
arbitrage isnt just in one direction. A
stongman run, put on by Fishermans
Friend in Germany, attracted his attention.
Although this event wasnt put on for prof-
it, he thought it could be. Harvards final
judging panel in the Business Plan Contest
werent as convinced, but Dean knew he
had found the Holy Grail: You get paid in
advance, you have no capital risk and it is
scalable. Upon graduating he called Guy
Livingstone, a friend from school and then
a bored corporate lawyer, who flew out to
the US to help set up the business.
Business school wasnt totally wasted; he
learnt two things. Firstly, always figure
out your minimum viable product a very
small experiment can test your assump-
tions. And secondly: Marketing is the true
core competency of all small businesses.
The first Tough Mudder event was in
May 2010. They were hoping for 500 people
to break even, but in 5 weeks they had sold
all 5,000 tickets. Dean and Livingstone had
gone from investing $20,000, to having
$500,000 sitting in the bank now they
just had to put on the event. It didnt run
entirely smoothly with cars backed up in
parking lots and bottlenecks at obstacles
but they learned from this. Last year there
were 14 Tough Mudder events in the US,
Business Features| Entrepreneurs
29
Turnover: $25m (2011); est. $75m (2012)
Number of staff: 55 (full-time)
Age: 31
Born: Sheffield, UK
Lives: Brooklyn, New York, US
Drinking: Brooklyn Lager/London Pride
(depending on location)
Talents:
Simplifying things, persevering with kitesurf-
ing, generally understanding Americans
Favourite business book:
The Effective Executive by Peter Drucker a
truly timeless classic
Motto: 95 per cent of business is execution,
95 per cent of execution is marketing and 95
per cent of marketing is empathy. (Harvard
Marketing Professor)
First ambition:
To be secretly recruited for MI5 and to grow
taller than his father
A Brit in New York who
is truly getting stuck in
much so, in fact, that after 10 years, and
now employing 100 people, they were in a
position to acquire their largest competi-
tor. But to do so, they needed money, and
lots of it.
The bank said no. A private equity firm
said yes; but they wanted a substantial
stake in the enlarged business. The team
thought about it long and hard. It would
mean a big dilution of their equity. On the
other hand, they all agreed theyd rather
have a smaller piece of a bigger pie, so they
said yes and the deal was done.
Five years later, after more hard work,
they were approached by a US multination-
al who wanted to buy their business, but
there was a problem: HMRC said that since
John and Jeremy now had individual stakes
of less than 5 per cent they werent really
entrepreneurs and so they would not be
entitled to Entrepreneurs Relief their
capital gains would be charged at 28 per
cent, not 10 per cent.
They felt hard done by, as they had paid
the same rate of capital gains tax as Johns
neighbour, Neville, who had recently sold
the house his recently deceased maiden
aunt had left him in her will. They felt that
by creating a business, and employing all
those people, their contribution to the UK
economy had been rather more than
Nevilles who had simply sold a second
home.
Joan felt angry too. She was older than
the others and due to sudden ill health had
decided, a year prior to the approach by the
US multinational, to step down as a direc-
tor. Although her stake was a little higher
than the others, at 7 per cent, HMRC said
that since she was no longer a director, she
wasnt really an entrepreneur either.
The same was true of three others, Steve,
Sally and Stuart. They had been early
employees but were now in senior manage-
ment positions although not directors.
They had joined a fledgling company and
had invested in the business as it grew,
using whatever excess income they had.
HMRC said they too werent really entre-
preneurs, as their stakes were less than 1
per cent and they werent directors.
As the original management team
mulled their options, Steve, Sally and
Stuart offered to buy the business, with
help from a buy-out firm. All three knew
the business well and had previously
invested substantial sums to build up their,
admittedly, small stakes. Their intention
was to re-mortgage in order to increase
their stakes as part of the buy-out. They
too, however, had a problem. Although
they were risking substantial sums of their
own money to buy relatively small stakes
in what was now a large business, HMRC
would, in time, tell them too, that they still
werent really entrepreneurs.
The moral of this story? Surely, its that
there are lots of different types of entrepre-
neurs. They dont have to be inventors, and
they dont have to be lone wolves.
Sometimes they buy businesses and they
often work in teams. The sooner the gov-
ernment recognises this, the better.
Claire Madden is a Partner at private client
investment firm Connection Capital LLP.
We should embrace
and foster success
not disincentivise it
I
T IS good news that Sir Richard
Branson, still the UKs most famous
self-made businessman, will be speak-
ing at this years Global
Entrepreneurship Congress (GEC) in
Liverpool the first ever to be held in
Europe. Taking place from 9 to 16 March,
this is the worlds largest gathering of
startup champions.
Branson says: A strong economy needs
to encourage entrepreneurs to create and
grow their businesses, adding, its great
to see the Kauffman Foundation backing
Britain by bringing the GEC, a showcase of
entrepreneurial talent, to Liverpool this
March. Bransons praise of the Kauffman
Foundation is spot on. Its an invaluable
resource for entrepreneurs, the largest
such organisation in the world.
However, as good as Kauffman is and
it really is outstanding it focuses on the
US. It would be great to see a similar
organisation for the UK. A centre for entre-
preneurship, not tied to any particular
political ideology, could be transformative.
This weeks page features a profile of
Will Dean (right), the co-founder of Tough
Mudder, which runs events designed by the
Special Forces to test participants
strength, stamina, mental grit, and cama-
raderie. This Englishman in New York is
now expanding his business into the UK.
The topic of Branson came up in discus-
sion with Dean. He thinks his treatment in
the UK has a lot to say about our cultural
reaction to entrepreneurs. Dean said that
when he tries to explain that a lot of people
in the UK think Branson a little gauche and
a show-off, some Americans are genuinely
offended. We in the UK could learn a lot
from Americans broad reaction to success.
Dean epitomises the vision and values of
the model modern entrepreneur. Its inspir-
ing, but as Claire Madden argues (below),
entrepreneurs are many and varied and at
present the tax system penalises those that
deviate from the standard model. These
technical details are not going to make
front page news, but if schemes are going
to be designed to try to incentivise entre-
preneurs, then we shouldnt let any slip
through the cracks.
PHILIP
SALTER
FEATURES WRITER
CITY A.M.
this year there will be over 25, with even
more in Australia, Canada and the UK.
Dean is plugged in and switched on he
even claims Tough Mudder is one of
Facebooks biggest advertisers, remarkable
for a company going only two years. He
likes the fact that it can target extremely
focused adverts in real time, running tests
for as little as $0.80.
Staff are offered $2,000 to leave in the
first month, while Tough Mudder Ventures
provides seed financing for former employ-
ees. He has big plans for his company and
certainly seems as dedicated to it as the
1,000 Tough Mudder competitors who have
had the blazing logo tattooed on them.
It doesnt get
much tougher
or muddier
CV | WILL DEAN
Lifestyle | Travel
The American satirist PJ ORourke had
little time for snow sports. As he put
it: Skiing consists of wearing $3,000
worth of clothes and equipment and
driving 200 miles in the snow in order
to stand around at a bar and drink.
That might not have been so bad for
ORourke he is famous for his love of
bars.
But for a band of explosively enthu-
siastic lunatics, it was not enough.
Thanks to them, freeride skiing is now
a sport, it is much more thrilling than
the spandex-clad ice-skating of alpine
racing, and it is about to make you
think differently about ski holidays.
Let me explain: Freeride skiing is to
ordinary skiing what cocaine and
hookers are to a glass of sherry in
front of Question Time. The premise is
simple instead of taking a chairlift
you take a helicopter. It drops you on
the top of a mountain face so steep
the uninitiated would forgive you for
packing a parachute.
Then you ski down it as quickly,
smoothly and originally as you can.
Ideally leaping off a few cliffs on the
way. Back-flips help. A panel of griz-
zled looking men in their 30s then
ranks you, while crowds whoop and
the helicopter carries up the next
batch of competitors.
The event is the Freeride World
Tour, and it has now been going for 16
years. This year, it will start in
Revelstoke, Canadas most exciting
new freeride resort, before moving
through older terrain of the Swiss and
French Alps. I joined some of the rid-
ers at the final of last years event in
Verbier, Switzerland.
The atmosphere was electric. After
two wet, cloudy days, and a great deal
of handwringing by the organisers,
the spring weather had delivered a
solid foot of fresh snow. Out of the
mist, the sun had emerged and the
spectators were massed at the bottom
of the world-famous Bec des Rosses
(pictured), munching on croissants
and waiting out the action.
A MENTAL SPORT
Before it begins, Aurlien Ducroz, a 29
year old skier originally from
Chamonix the original freeride
resort explains the appeal of freeride
competitions over conventional pro-
fessional skiing: I was on a ski-jump-
ing team for five years. You have to
train, do everything, according to a
system. As a freerider, you have total
freedom. You can be very creative. I
The Freeride World
Tour, now in the
Alps, puts skiing in a
whole new light, says
Daniel Knowles
When skiing becomes
like that.
The key to success, he says, is prima-
rily planning: Its actually very men-
tal, you have to focus on your line.
When Im skiing, all Im thinking
about is the next thing the next
turn, or where the next big cliff is.
The competitors spend much of the
morning of the competition plan-
ning. While guides check the snow
conditions for avalanche risk, riders
look at photos of the mountain from
different angles, working out the
obstacles they have to overcome and
how to recognise them from above.
Turns are planned long before they
are made, as are the bigger drops. But
Ducroz insist he doesnt let the techni-
cal side suck out the fun: Mostly I like
to go fast, he enthuses, I dont do a
lot of jumps I want to be as smooth
as I can.
Later Ducroz won the mens ski
event, not least thanks to an outra-
geous and brilliantly smooth cliff
drop. From my perch I watched him
punch the air as he landed before
smoothly ducking into the next turn,
still travelling at a gobsmacking clip.
His verdict afterwards neatly sums up
the entire sport: Everything went
perfect for me today I jumped two
big cliffs!
MAKING IT WORK
The sport is the invention of Nicolas
Hale-Woods, a Swiss snowboarder and
entrepreneur. In 1994, Hale-Woods
was filming snowboard movies in
Verbier and looking for an interesting
new project. We were riding the Bec
des Rosses he says, And suddenly we
noticed about 150 people were just sit-
ting around and watching.
We had heard about some skiers in
Alaska judging each other, and we
realised that there was potential
there. Spotting his opportunity, Hale-
Woods decided to start a competition.
The idea was to bring the most outra-
geous, off-piste skiing back into
resorts where ordinary skiers could
watch it.
But hosting a ski tournament is not
exactly cheap. How did Hale-Woods
get financing? We were lucky
enough to send one of our partner-
ship proposals to the agency that was
launching Red Bull in Switzerland,
he says, And they said, do you want
100,000 Swiss Francs? Well give you
two-thirds, and youll get the rest by
selling Red Bull. So we were lucky.
The first tournament, there was
good snow, sunny weather, and it just
worked.
Now the tournament is heavily
sponsored by Swatch, Nissan and oth-
ers, as well as by the resorts hosting
the tournament such as Verbier.
Verbier will always want to be associ-
ated with free-ride skiing says Hale-
Woods. The tournament has now
expanded much further: last summer,
they even hosted a competition in
Chile.
WHATS NEXT?
The real key to its success has been the
explosion of freeride skiing among
ordinary skiers. Back in the 1990s, off-
piste skiing meant learning to use fid-
dly, analogue avalanche transceivers
and two-metre long skis and walking
a lot. Now, thanks to banana shaped
fat skis, designed specifically to
make it easier to ski in deep powder
snow, it is much easier to get off the
marked runs.
And the riders are determined to
make the Freeride World Tour some-
thing that even the ordinary 2-weeks-
a-year skier can enjoy. While most
people might not be up for the Bec des
Rosses, punters can, for a fee, ski with
the pros and a guide on their training.
TOP GEAR
1) Swatch Snowpass Watch
Do you find lift passes annoying?
Hate having to shuffle around
trying to get the right pocket
up to the scanner? The
Swatch Snowpass is
designed to help it
includes a RFID chip rather
like the ones in most lift
passes. The idea is that
when you buy your pass,
you get it scanned into
your watch so you can
just fly through the scan-
ners. Pointless? Undoubtedly.
Cool? Yes.
www.swatch.com
/zz_en/snowpass
2) Zeal Optics GPS goggles
If theres one problem with skiing, its that you
cant tell how fast you are going. Thats clearly
what Zeal think anyway these goggles include
an actual GPS based speedometer. Theres a tiny
screen mounted in
the bottom right
corner which,
at any
moment, you
can just
glance down
at and see
not only your
exact speed, but also the temperature, altitude,
record speed and any thing else you might want
to know. Crazy but brilliant.
www.zealoptics.com/transcend
3) Wipe-out piste map
A piste-map thats also a goggle wipe. The
genius is that it doesnt fall to pieces in the
snow, or crumple up in your pocket, so you
wont be forced to replace it every day.
Also, you can keep your goggles clean. Or
use it as a face wipe after a particularly
gnarly run.
www.wipe-out.eu
4) Avalanche airbag system
Venturing out into the backcountry?
The first thing you need is an ava-
lanche transceiver, a
probe and a shovel.
But lots of pros are
also taking these
trendy backpacks.
As well as carrying
all your gear, it also
includes a gas canis-
ter and a giant airbag.
Pull a cord and
instantly it expands
around your head, help-
ing to pull you to the
top in an avalanche.
www.snowpulse.com/en
Freeriding at
Verbier, one of
the major resorts
involved in the
tour. Fabulous
snow and wild
peaks make it
ideal.
more like snow-flying
1) Stay: Chalet Bella Coola, named for
the famously snowy valley in British
Columbia Canada, is one of the most chic
places you can stay in Verbier.
As well as all the usual amenities of a
luxury chalet (a personal driver, mouth-
watering food, the softest sheets), its
worth staying here just for the swim-
ming pool. Hidden behind enormous
Indian doors, the panoramic views of the
mountains cannot be bettered.
www.ckverbier.com/bella- coola-
accommodation.htm
2) EAT: Le Table dAdrian, the Michelin
starred restaurant of the luxury Chalet
dAdrian, is not easily bettered, in Verbier
or anywhere. The Italian inspired food,
served up by head chef Marco Bassi,
looks as exotic as you would expect of a
restaurant with such credentials think
steak mounted artfully on the bone. But
these are not pointless dainties you will
come away well fed and satisfied. Just
ready to hit the bars.
3) DRINK: Though no St Anton, Verbier
doesnt lack for decent watering holes.
For the best aprs, try Le Carrefore, hid-
den away on skiers right on the way back
to the resort, catches the late sun and is
a decent place for a pint. Later, the com-
pulsory Irish bar Murphys is a popular
hangout for British season workers
find one to buy your drinks and youll
save a packet. Then finish up at the
Casbah for classically European dance
music and people jumping about in their
ski jackets.
NEED TO KNOW
Verbier is one the greatest ski resorts
in the world and theres plenty of
powder to be had; this winter there
has been lots of fresh now fall. If
youre not up for walking, check out
the Tortan and the Gentianes, but the
real fun it at the 3,330m peak of Mont
Fort, where Mont Blanc and the
Matterhorn dominate the horizon.
So even if youve never thought to
leave the piste, now is maybe the time.
Gloriously (though not for those who
compete for fresh snow) freeride has
than 15 seconds from top to bottom,
but youve just got to be on it, feel it,
let her buck. Its like flying. Its the
best feeling in the world.
But if you still think PJ ORourkes
version was more accurate, well, at
least thanks to the men and women
on the tour, theres a hell of a view
from the bar.
The Freeride World Tour 2012 will be at
Verbier from 24 March-1 April. For all event
details and locations, see
freerideworldtour.com.
gone mainstream.
The sort of runs once only profes-
sionals could ski try Googling The
Blizzard of Aahs to get a sense of
where this sport started are now
available to anyone able to ski a black
run competently.
And there is nothing more satisfy-
ing than cutting your own line down
the mountain while children stare,
goggled eyed, from the lifts: thats
what skiing is about. As one competi-
tor, puts it: It might be no longer
T
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MRS BROWNS BOYS
BBC1, 9.30PM
Agnes goes on a diet after her familys
comments about her weight, but soon
realises how difficult it will be to lay
off the fish and chips.
ABOVE SUSPICION: SILENT
SCREAMITV1, 9PM
Travis follows her instincts
independently from the team, but her
devotion to the force begins to lead
her down a dangerous path.
HOME AND AWAY
CHANNEL5, 6PM
Romeos sister Mink arrives in Summer
Bay and it soon becomes apparent she
has money troubles, and April tells Dex
their relationship is over.
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmLive Football League
10pmPremier League Review
11pmNetbusters 11.30pmSPL
Round-Up 11.55pm-6amLive
Test Cricket
SKY SPORTS 2
7pmEuropean Rugby Special
8pmNFL 10pmWarren Miller
Skiing Films 11.30pmSoccer AM:
The Best Bits 12.30amFootball
League 2amWarren Miller Skiing
Films 3.30amWatersports World
4.30amMax Power
5.30am-6amFIFA Futbol
Mundial
SKY SPORTS 3
7pmWarren Miller Skiing Films
8.30pmKings of the Snow9pm
Spirit of Yachting 9.30pmFishing
Gurus 10pmWWE: Late Night
Bottom Line 11pmWWE: Late
Night Afterburn 12amWWE:
NXT 1amWWE Vintage
Collection 2amLive WWE: Late
Night Raw4.15am-5.45am
Football League
BRITISH EUROSPORT
6.45pmLive Africa Cup of
Nations 9pmWATTS 9.15pm
Australian Open Tennis 11.30pm
Game, Set and Mats
12am-6.15amTennis: Australian
Open
ESPN
7pmESPN Game of the Week: A
football match from the past
week on ESPN. 7.30pmCaribbean
Twenty20 Cricket 10.30pm
Premier League Review11.30pm
Press Pass 2012 12amESPN
Kicks: Scottish Premier League
12.15amESPN Kicks: Extra
12.30amLive NBA Basketball
3amBundesliga Review Show
4.15amESPN Kicks: Scottish
Premier League 4.30amESPN
Game of the Week 5am-6am
Premier League Review
SKY LIVING
7pmCriminal Minds 8pmBigger
than Britney 9pmAmericas Next
Top Model: All-Stars 10pm
Criminal Minds 11pmBones
12amCSI 1.50amCriminal
Minds 2.40amMy Wife and Kids
3.30amBones 4.20amNothing
to Declare 5.10am-6amJerry
Springer
BBC THREE
7pmPops Greatest Dance Crazes
8pmDont Tell the Bride 9pm
How Sex Works 10pm
EastEnders 10.30pmBizarre
Crime 11pmFamily Guy 11.45pm
American Dad! 12.30amHow Sex
Works 1.30amBizarre Crime
2amDont Tell the Bride 3amThe
Career Crashers 4am-5amTable
Dancing Diaries
E4
7pmHollyoaks 7.35pmHow I
Met Your Mother 8pmMy Name
Is Earl 9pmPlaying It Straight
10pmSkins 11.10pmFresh Meat
12amThe Big Bang Theory 1am
Scrubs 1.55amHow I Met Your
Mother 2.20amRules of
Engagement 2.40amFresh Meat
3.25amGreek 4.10amWildfire
5am-6amSwitched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmStorage Wars 9pm
Pawn Stars 10pmAmerican
Pickers 12amPawn Stars 1am
American Pickers 3amClash of
the Gods 4amDeep Wreck
Mysteries 5am-6amAmerican
Pickers
DISCOVERY
7pmMythbusters 8pmApollo 13:
The True Story 9pmBear Grylls:
Born Survivor 10pmSons of Guns
11pmDeadliest Catch 12amBear
Grylls: Born Survivor 2amApollo
13: The True Story 3amWheeler
Dealers 3.50amMythbusters
4.40amChris Barries Massive
Engines 5.30am-6amDestroyed
in Seconds
DISCOVERY HOME &
HEALTH
7pmSupernanny USA 8pmJon
and Kate Plus 8 9pmCritical
Condition 10pmTrauma Team
11pmHospital Emergency 12am
Critical Condition 1amTrauma
Team2amHospital Emergency
3amSupernanny USA 4amA
Baby Story 5am-6amBringing
Home Baby
SKY1
8pmGadget Geeks 9pm
Obese: A Year to Save My Life
10pmAn Idiot Abroad 2 11pm
A League of Their Own 12amDog
the Bounty Hunter 1amMy
Holiday Hostage Hell 1.50am
Fringe 3.40amThe Top Ten Show
3.50amRoad Wars 4.20am
Project Catwalk 5.10am-6am
Dont Forget the Lyrics
BBC2 ITV1 CHANNEL4 CHANNEL5
S
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&
C
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmInside Out: BBC News
8pmEastEnders 8.30pmTrain
Fares: Taken for a Ride? Panorama
9pmThe Royal Bodyguard 9.30pm
CHOICE Mrs Browns Boys 10pm
BBC News 10.25pmRegional News
10.35pmA Question of Sport
11.05pmLate Kick Off 11.35pm
The Graham Norton Show12.20am
Weatherview12.25amSign Zone:
Who Do You Think You Are?
1.25amMasterChef: The
Professionals 1.55amYouve Been
Scammed 2.40amCelebrity
Antiques Road Trip 3.40am-6am
BBC News
6pmEggheads
6.30pmGreat British Railway
Journeys
7pmBaking Made Easy
7.30pmA Question of Taste
8pmUniversity Challenge
8.30pmAn Island Parish
9pmThe Real Magnificent
Men in Their Flying Machines:
A Wonderland Film: The Round
Britain Rally.
10pmMock the Week Again
10.30pmNewsnight: Weather
11.20pmAmerican Football
12.20amBowls
1.20amBBC News 3.40amClose
4am-6amBBC Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmCoronation Street
8pmCornwall with Caroline
Quentin
8.30pmCoronation Street
9pmCHOICE Above Suspicion:
Silent Scream
10pmITV News at Ten
10.30pmLondon News
10.35pmThat Sunday Night Show
11.10pmLaw & Order: UK 12.05am
River Monsters 12.30amThe Zone;
ITV News Headlines 2.35amThe
Jeremy Kyle Show3.30amITV
Nightscreen 4.35am-5.30amThe
Jeremy Kyle Show
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmSuperScrimpers
9pmCoppers:
10pmParty Paramedics
11.05pmRandom Acts
11.10pmShameless
12.15amThe Joy of Teen Sex
1.10amEmbarrassing Bodies
2.05amUndressing My Mother
2.10amBrain Damage 2.15amSt
Elsewhere 3.05am90210 3.45am
Designers Under Pressure 4am
Rome: The Model Empire
4.55am-5.55amLost Buildings of
Britain
6pmCHOICE Home and Away
6.30pm5 News at 6.30
7pmWorlds Toughest Trucker:
5 News Update
8pmPolice Interceptors: 5
News at 9
9pmCelebrity Big Brother
10pmCelebrity Wedding
Planner
11pmCelebrity Big Brothers
Bit on the Side
12amKate Thornton
Anorexic: My Secret Past
1amSuperCasino 4amAnimal
Rescue Squad 4.10amGreys
Anatomy 5amCounty Secrets
5.10am-6amHouse Doctor
1 2 3 4 5
6 7
8
9
10 11 12
13 14 15 16 17
18 19
20 21
22
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11 12 4
9 24
28 23
15 6
25 12
45
15 24
11 35
7 12
22 16
14 22 17
13
18
12
27
21
10
19
42
8
17
34
9
9
41
13
11
23
27
6
20
29
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
3 Covered with hair (7)
6 Long raised strip (5)
8 Arm of the
Mediterranean between
Greece and Italy (6,3)
9 Communion table (5)
10 Distant but within
sight (6)
13 Nil (4)
16 Framework that holds
the panes of a window
in the frame (4)
18 Express agreement (6)
20 Helicopter propeller (5)
22 Very small in scale (9)
23 Scour (5)
24 Predatory black-and-
white whale (7)
DOWN
1 Inferior substitute
or imitation (6)
2 Newspaper chiefs (7)
3 Name of eight kings
of England (5)
4 Church councils (6)
5 Belonging to those
people (6)
7 Indian state, capital
Panaji (3)
11 Be in possession of (3)
12 From the Orient (7)
14 Less difcult (6)
15 Hard, brittle element; the
heaviest known metal (6)
17 As a result of this (6)
19 Bind (5)
21 Imaginary monster
or ogre (3)
E
N
N
E
S I
T
X
O

4

E G O G G L E B O X
X U I A E
T R I E D S T A R S
R L A D D E R S H
E N T R Y R A T I O
M L M R
I N G O T S M E L T
T A B A S H E D E
Y E M E N A L I G N
U G D C E
I N T R O V E R T D
4 2 6 1 1 3 2 8
9 4 8 7 5 6 3 9
3 9 9 8 7 5 6
9 5 1 3 2 1 3
5 1 2 4 6 3 7
8 7 6 9 4 9 2 1
1 6 4 7 8 3 2
9 3 8 1 6 7 9
8 4 6 7 9 1 4
5 1 4 2 8 4 6 9
7 2 1 5 3 2 1 8
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
IMPULSIVE
Lifestyle | TV&Games
CITYA.M. 23 JANUARY 2012 32
Sport
Results
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email sport@cityam.com
SPORT | IN BRIEF
Narraway handed England chance
RUGBY UNION: Gloucester No8 Luke
Narraway has been drafted into the
England squad ahead of the Six Nations
as a replacement for injured Northampton
back-rower Tom Wood. Narraway, 28, has
seven caps, the most recent against
Ireland at Croke Park two years ago.
Wood, who had been touted as a potential
successor to Lewis Moody as England
captain, has been ruled out of the tourna-
ments first two matches with a damaged
toe. England begin their Six Nations
defence on 4 February against Scotland
at Murrayfield in what will be interim
coach Stuart Lancasters first game in
charge.
Drogba on target for Ivory Coast
FOOTBALL: Chelsea striker Didier Drogba
ensured Ivory Coast got their Africa Cup
of Nations campaign off to a winning
start by scoring the only goal of their
opening Group B clash against Sudan. It
took the Elephants 39 minutes to break
down Sudan, with Drogba heading home
Salomon Kalous cross. Ivory Coast face
Burkina Faso in their second game on
Thursday.
Olazabal rolls back the years
GOLF: Europes Ryder Cup captain Jose
Maria Olazabal defied his world ranking of
596 to secure an impressive sixth placed
finish at the Volvo Golf Champions at
Fancourt Links in Western Cape. The
Spaniard, 45, who hasnt won a tourna-
ment for seven years, finished on eight
under, four shots behind winner Branden
Grace, who beat Ernie Els and Retief
Goosen in a three-way South African
play-off. The only weak part was my
driver. The rest of the game has been
pretty good, said Olazabal. At certain
moments in the round it looked a little bit
like the old days. Home favourite Grace,
meanwhile, secured his second win in a
row after his success at the Joburg Open.
BRITISH pole-vault sensation Holly
Bleasdale announced her arrival as
one of the best home medal hopes for
London 2012 by recording the second
highest indoor jump of all time yes-
terday.
Bleasdale, who only took up the
sport four years ago, beat her own
British indoor record three times as
she won in Lyon with a mammoth
leap of 4.87m.
The 20-year-old failed in an attempt
to beat Yelena Isinbayevas all-time
best mark of 5m but was delighted
with a performance good enough to
win all but one of the womens world
titles in history. I just lay still in
astonishment. The crowd was
absolutely electric and this was an
amazing boost, Bleasdale said.
Everyone was on their feet shout-
ing, and when I attempted 5.01m the
atmosphere was just out of this
world. Ive never experienced it like
that before.
Bleasdales success comes after she
switched to longer poles in order to
keep up with her rapid improvement
last season. The upgrade was funded
by sports philanthropist Barrie Wells,
whose foundation helps Bleasdale
and other Team GB hopefuls such as
Jessica Ennis, Jenny Meadows, Dai
Greene and Jodie Williams.
Pole vaulter Bleasdales
joy at triple record feat
OLYMPICS
Mens Singles
A Murray (GBR) [4] v M Kukushkin (Kaz)
N Djokovic (Ser) [1] v L Hewitt (Aus)
K Nishikori (Jap) [24] v JW Tsonga (Fra) [6]
R Gasquet (Fra) [17] v D Ferrer (Spa) [5]
Womens Singles
A Ivanovic (Ser) [21] v P Kvitova (Cze) [2]
E Makarova (Rus) v S Williams (US) [12]
S Lisicki (Ger) [14] v M Sharapova (Rus) [4]
S Errani (Ita) v J Zheng (Chi)
Tournament Schedule
Today: Mens/Womens last 16
Tue: 2 mens, 2 womens quarter-finals
Wed: 2 mens, 2 womens quarter-finals
Thu: 2 womens semi-finals, 1 mens
Fri: 1 mens semi-final
Sat: Womens final
Sun: Mens final
HIGHLIGHTS | MONDAYS ACTION
Clijsters sweats on injury
after reaching last eight
REIGNING champion Kim Clijsters
admits her title defence hangs in
the balance after aggravating an
ankle injury in a gutsy three-set
defeat of fifth seed Li Na.
Clijsters (inset), seeded
11th, fought back from a
set down to defeat the
Chinese French Open win-
ner 4-6, 7-6 (8-6), 6-4 and
reach the Australian Open
quarter-finals.
But the Belgian, who meets
top seed Carline Wozniacki
next, needed an ice bath and heavy
strapping immediately afterwards
and addressed media with her foot
elevated to relieve swelling.
Clijsters said: I have the best peo-
ple around me to take care of
me and to make sure
that this is hopefully
not going to get any
worse.
W o z n i a c k i
smothered a late
comeback from
13th seed Jelena
Jankovic. Meanwhile,
Victoria Azarenka will
face Agnieszka
Radwanska.
TENNIS
SECOND seed Rafael Nadal warned

his rivals that he is already firing on
all cylinders after claiming a place in
the Australian Open quarter-finals
and staying on course for a last-four
showdown with Roger Federer.
Nadal beat compatriot Feliciano
Lopez 6-4, 6-4, 6-2 to continue a
strong beginning to the years first
grand slam that belies his lack of
preparation and a reputation as a
slow starter.
I think I started the tournament
playing really well this time, he said.
Sometimes in tournaments I feel
that I am improving day by day but
this time I felt that I played well on
the first day, the second and two days
ago and today I played another
complete match.
Victory set up a last-eight meeting
with seventh seed Tomas Berdych,
who refused to shake hands with
Nicolas Almagro after beating him,
having felt the Spaniard had aimed
shots directly at him.
If Nadal sees off the Czech tomor-
row he will be likely to meet Federer,
whom he criticised earlier this
month for failing to voice players
concerns over a gruelling schedule,
in the semi-finals.
Now I am in the quarter-finals
and this is the moment to keep play-
ing well and to try to do a little bit
more, Nadal added.
In general I am doing the right
things but, if its possible, [Id like] to
try to improve a little bit.
Third seed Federer, seeking his
fourth Australian Open title,
advanced with a 6-4, 6-2, 6-2 success
over promising home prospect
Bernard Tomic, who upset 13th seed
Alexandr Dolgolpolov in round three.
I thought I played a really good
match. I knew I had to, anything else
and I wouldnt have got the job
done, said Federer. The score would
suggest otherwise but I had to work
extremely hard and Bernard showed
why he is going to be a great player.
The Swiss 16-time grand slam
champion will meet Argentinian
Juan Martin del Potro in the quarter-
finals in a repeat of the 2009 US Open
final, after the 11th seed saw off
Germanys Philipp Kohlschreiber.
Nadal issues warning as he
closes in on Federer clash
BY FRANK DALLERES
TENNIS
The Spanish sec-

ond seed has
started strongly
Picture: ACTION
IMAGES
Sport
34
ENGLAND wicketkeeper Matt Prior
admits his side came into last weeks
first Test against Pakistan under-
cooked but insists his side are
equipped to banish the memories of
that 10-wicket defeat and square the
series in Abu Dhabi this week.
Prior, the only English batsman to
pass 50 in either innings of last weeks
match in Dubai, confessed the pride
of Andrew Strausss side had been
stung by such a comprehensive defeat
but was adamant that 18 months
hard work would not be erased as a
result of one poor performance.
He said: You can spend as much
time in the gym and as much time in
the nets as you want, But until youre
out in the middle, you dont get that
ring-ready feeling.
Were used to walking off the
pitch having inflicted the sort of
defeat Pakistan inflicted upon us, so it
was a very bitter pill to swallow it
has given us a good slap in the face.
The second Test begins on
Wednesday and Prior revealed the
team will look to find a way to combat
spinner Saeed Ajmal, who took 10
wickets in the series opener.
Prior added: The obvious thing we
need to think about is how we play
spin and how we play Saeed Ajmal.
CRESTFALLEN Tottenham manager
Harry Redknapp criticised referee
Howard Webbs failure to send off
Mario Balotelli after the controver-
sial forward took full advantage
of his reprieve to sink
Spurs with an
injury-time
winner.
Balotellis
d e c i s i v e
penalty came
seconds after
Jermain Defoe
missed a
chance to snatch
victory for the
visitors, while
Redknapp and his
bench were still
fuming at the Italians apparent
stamp on Scott Parker (inset).
Victory maintained Manchester
Citys three-point lead at the top of
the Premier League and came after
strikes from Spurs duo Defoe and
Gareth Bale had undone home
efforts from Samir Nasri and Joleon
Lescott.
It delivered a heavy blow to
Tottenhams hopes of mounting a
strong challenge for their first top-
flight title since 1961 but Redknapp
was more exercised by Balotelli,
who he insisted should have been
dismissed. It is not the first time he
has done that and I am sure it wont
be the last. I am the last person to
talk about getting people sent off
and what they should and shouldnt
do, but it is blatant, said Redknapp,
whose trial for charges of alleged
tax evasion begins today at
Southwark Crown Court.
What reason did he have to back-
heel Scott in the head with his studs
when he is laying on the floor? It is
not a nice thing to do.
The Football Association will read
Webbs report before deciding
whether to take action
against Balotelli.
Tottenham were inches
away from victory in the
dying moments, when
Bale streaked clear and
squared for Defoe, who
could only divert wide
at the far post at full
stretch.
It would have put
them two points
behind City and
eight clear of Chelsea in
fourth; instead they remain third,
having slipped to five points behind
second-placed Manchester United.
Spurs were left reeling after con-
ceding two goals in three minutes
early in the second half.
First, former Arsenal midfielder
Nasri burst on to David Silvas
through-ball to smash past Brad
Friedel before Lescott bundled in a
flicked-on corner.
Seconds later Defoe pulled one
back, however, rounding goalkeeper
Joe Hart after scampering onto
Stefan Savics wayward header. Bale
then looked to have earned
Redknapps men a point when he
curled an exquisite first-time effort
across and over Hart.
Defeat in Dubai was a real
slap in the face, says Prior
CRICKET
ENGLANDS world-beating Test team

will suffer if radical plans to reform
the county game are passed by gov-
erning body the ECB, fears Middlesex
chief Angus Fraser.
The headline recommendation
from the Morgan Review, which the
ECB will discuss today, is a reduction
in the number of matches in the
County Championship, while keeping
a two-division format comprised of
nine teams each. It is widely accepted
that four-day cricket will suffer at the
expense of ensuring Twenty20 com-
petition retains as many as 14 group
matches, and Fraser believes it will
impact adversely on the calibre of
players county cricket will provide for
the Test side.
There are large sections of the
report that concern and worry me as
an advocate of four-day cricket,
Fraser, managing director of cricket
at Middlesex, told City A.M.
Look at where the England team is
right now at No1 in the world we
must have been doing something
right at county level for the last few
years. I dont ever want to see [us]
reducing the amount of county
championship matches. We want to
enhance the quality of the competi-
tion but a county should look to pro-
vide players for the Test team.
You get the distinct impression
many of the recommendations are
made with money rather than whats
best for the game in mind and that
can never be a good thing. Prolonging
the Twenty20 season might help
some counties balance the books, but
thats certainly not us at Middlesex.
Fraser: Morgan Review will
undermine England Test side
BY JAMES GOLDMAN
EXCLUSIVE
MANCHESTER 2
BY FRANK DALLERES
FOOTBALL
3
2
MANCHESTER CITY
TOTTENHAM
KEY MOMENT
How costly could Jermain Defoes late miss
prove for Tottenhams season? When
Gareth Bale launched a last-ditch counter-
attack by charging purposefully from the
half-way line, skinning Joleon Lescott and
delivering a low ball across goal Defoe
looked certain to score. But, with echoes of
Paul Gascoigne in Euro 96, he could not
make up enough ground to get the contact
he needed and instead slid his effort wide.
TALKING POINT
Mario Balotellis tangle with Scott Parker
left Spurs boss Harry Redknapp and pun-
dits in little doubt that the Italian had
deliberately made contact with the
England midfielder. The question for the
Football Association, should referee
Howard Webb confirm he missed it, is
whether it can be similarly confident and
issue the walking headline generator with
a retrospective punishment. Webb seemed
to notice the clash but his report, submit-
ted to the FA, will be crucial.
GAME STATS
MAN CITY 3-2 SPURS
4 ATTEMPTS ON TARGET 3
12 ATTEMPTS OFF TARGET 11
9 CORNERS 4
53% POSSESSION 47%
2 YELLOW CARDS 1
0 RED CARDS 0
1 OFFSIDES 2
DUGOUT VIEW
I havent seen the video [of the
Balotelli incident]. Until I have, I cant
comment. I dont think there was any
kind of reaction from the players. But if
someone has seen something, I will be
able to comment once I have seen some-
thing from a different angle. The gaffer
is delighted with the victory but hes
made it very clear that we cant give silly
goals away when weve more or less put
the game to bed if we are to achieve
what we want to this season.
Man City assistant David Platt
MATCH ANALYSIS
BY FRANK DALLERES
Redknapp rages after Balotelli escapes red
card for clash with Parker and then crushes
Tottenham comeback with penalty winner
Balotelli won and
converted a last
minute penalty
Pictures: ACTION
IMAGES / SKY
SPORTS
35
FEDERER ON COURSE FOR NADAL
CLASH IN AUSTRALIA
GRAND SLAM RIVALS PROGRESS TO LAST
EIGHT IN MELBOURNE: PAGE 33
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ARSENAL manager Arsene Wenger
confessed he was at fault for the bun-
gled substitution that contributed to a
third consecutive Premier League
defeat which by his own admission
left his side facing an uphill struggle
to finish in the top four.
Robin van Persies 19th league goal
of the season cancelled out Antonio
Valencias first half header for
Manchester United and seemed des-
tined to earn his side at least point
against the champions.
But the decision to withdraw 18-
year-old Alex Oxlade-Chamberlain,
who was outstanding on his first
Premier League start, stunted
Arsenals momentum and was met
with disbelief from the stands and
appeared to be greeted with equal dis-
dain by club captain Van Persie.
The discontent boiled over soon
after when Chamberlains replace-
ment, Andrey Arshavin, made a half-
hearted attempt to prevent Valencias
run that led to Danny Welbecks 81st
minute winner.
Asked whether the fans were right
to question his judgement, Wenger
said: I can understand that the sup-
porters are upset about the substitu-
tion, especially when it doesnt work.
A 1-1 it looked like we would win
but in the end one tactical mistake
lost us the game. I do not want to
dwell too much on that now but one
second of inattention can cost you.
Arsenals frustrated fans might con-
tend their side were guilty of more
than one moment of inattention
with Uniteds willingness to attack
makeshift right-back Johan Djourou
looking like it would yield success
long before Valencia powered home a
Ryan Giggs cross in the second minute
of first half injury time.
The hapless Swiss defender was
hauled off at the interval with anoth-
er 18-year-old, Nico Yennaris, handed
his top flight debut and the change
appeared to galvanise Arsenal.
Van Persie, Aaron Ramsey and
Chamberlain all went close before the
skipper finally restored parity in the
71st minute, capping a flowing move
with a typically precise finish.
Arshavins lack of defensive inclina-
tion, however, paved the way for
Valencia and substitute Ji-Sung Park to
tee up Welbeck for a goal which kept
United within three points of leaders
Manchester City and left Arsenal five
points adrift of fourth placed Chelsea.
It leaves us in a very difficult posi-
tion because we couldnt afford to
lose, admitted Wenger. But the way
we responded in the second half is a
positive thing. Its difficult to have a
reaction like that and come out with
no points at all.
SARACENS boss Mark McCall
hailed loan signing Peter Stringer
after the Premiership champions
fought back to become the only
English side to reach the Heineken
Cup quarter-finals.
England stars David Strettle and
Mauritz Botha notched tries and
Owen Farrell landed six vital kicks
as Sarries confirmed their status
as Pool Five winners and set up a
home tie against Clermont
Auvergne.
Their Italian opponents made
them battle, however, and Ireland
scrum-half Stringer typified a grit-
ty team performance with one try-
saving tackle on Treviso lock
Antonio Pavanello.
Peter has been a great signing
for our club, McCall said. He was
one of the better players today. His
work-rate and his aggression on
our line was brilliant.
Stringer, signed as cover for
injured No9s Richard
Wigglesworth and Neil de Kock, is
two months into a three-month
loan from Munster and it remains
unclear whether he will still be at
Vicarage Road come the quarter-
finals. Saracens trailed 17-13 at
half-time and McCall added: In
the second half we dug in, and I
have nothing but admiration for
the way we got the job done.
Premiership rivals Harlequins
and Northampton failed to
progress from their groups.
Saracens into quarters
LONDON 0
BY FRANK DALLERES
RUGBY UNION
20
26
TREVISO
SARACENS
Munster v Ulster
Leinster v Cardiff Blues
Edinburgh v Toulouse
Saracens v Clermont Auvergne
Ties to be played 6/7/8 April
LAST EIGHT | HEINEKEN CUP
ASCOT chiefs have apologised and
offered a five-figure sum in refunds after
branding racegoers who fell short of
their new, tougher dress code with
orange stickers.
Visitors to the premier enclosure who
did not meet revised standards men
without jacket and tie, for example
were admitted for Saturdays meeting
but tagged with labels as a reminder.
It is clear that we let down many of
our premier enclosure customers yester-
day with a well intentioned but misguid-
ed policy, said Ascot chief executive
Charles Barnett.
No customer should be expected to
pay for such an experience and we have
taken the view that all premier enclosure
visitors yesterday will receive a full
refund. We have worked very hard for
many years to establish ourselves as a
benchmark for customer service and are
making this statement today to reinforce
that we will not allow our reputation as a
welcoming sports venue to be tarnished
by an isolated lack of judgment on our
part.
Ascots stricter dress code follows criti-
cism that standards had slipped at the
racecourse, home to one of the calendars
most prestigious occasions in Royal
Ascot. It states men must wear a jacket
and tie, smart trousers or smart jeans
and forbids sports shoes. On hot days
guests are permitted to remove jackets,
but only once an official announcement
has been made. Women are advised to
dress for a smart occasion, with hats
encouraged but not compulsory.
A spokesman for Ascot said the stickers
were meant for staff to identify which
guests had been spoken to about their
dress. He added: It was clearly the wrong
thing to do and there will not be orange
tags next time.
Ascot sorry after visitors
tagged for casual outfits
BY FRANK DALLERES
HORSE RACING
Fans turn on Wenger for substituting Chamberlain

and bringing on Arshavin as Welbecks winner sends
Arsenal to third consecutive Premier League defeat
Man City 22 17 3 2 60 18 54
Man United 22 16 3 3 54 21 51
Tottenham 22 14 4 4 41 24 46
Chelsea 22 12 5 5 40 25 41
Arsenal 22 11 3 8 39 33 35
TOP FIVE
TEAM PLD W D L F A PTS
BY JAMES GOLDMAN AT EMIRATES STADIUM
FOOTBALL
1
2
ARSENAL
MANCHESTER UNITED
Welbecks winner
ensured United
remained within
three points of
leaders Man City.
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