Cityam 2012-01-26

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FTSE 100 5,723.00 -28.90 DOW 12,758.85 +83.10 NASDAQ 2,818.31 +31.67 /$ 1.57 +0.01 / 1.19 -0.01 /$ 1.31 +0.01
Fed: We wont increase ultra-low interest rates until late 2014
THE FINANCIAL Services Authority yes-
terday fined hedge fund Greenlight
Capital and its owner, David Einhorn,
7.2m for alleged insider trading in
connection with a 350m equity rais-
ing by Punch Taverns in 2009.
Einhorns 3.6m share of the 7.2m
fine is the second-largest ever imposed
by the UK regulator on an individual
for market abuse.
The FSA case hinged on a telephone
conversation in June 2009 between
Einhorn and Punch Taverns chief
executive Giles Thorley, Andrew
Osborne of Bank of America Merrill
Lynch and three others just days
ahead of the planned capital raising.
According to sources, Osborne
asked Einhorn if he could make him
an insider, which would have made
him privy to inside information but
prevent him from trading in the firms
securities, but Einhorn refused. There
was then some discussion about the
matter before the conversation ended.
Within minutes of the conversation
closing, according to the FSA, Einhorn,
who is well known for shorting
Lehman before its collapse, gave
instruction for all of his 13.3 per cent
shareholding in Punch to be sold.
City A.M. first approached Einhorns
public relations company in New York,
Sard Verbinnen, on Monday to com-
ment on its clients share dealings in
Punch Taverns in 2009. It made no
response until yesterday after the
FSA revealed Einhorn had been fined.
Yesterday Einhorn, an outspoken
activist shareholder who opposed the
Punch Taverns fundraising, said: We
believe that this action is unjust and
inconsistent with the law and with
prior FSA enforcement precedent.
However, rather than continue an
arduous fight, we have decided to put
this matter behind us and concentrate
on managing our business.
In a 45 minute conference call last
night, an affronted but unapologetic
Einhorn accused the FSA of conduct-
ing a politically charged process. The
FSA wants to score a win against a
high profile US hedge fund, he said.
He said that not one of the people
on the Punch call had said that any
inside information had been disclosed.
There was no reason to think I was
restricted in any way, he said.
The FSAs investigation into
Osborne, who quit Bank of America
Merrill Lynch in December, is ongoing.
ANALYSIS: P10-11
THE GLOBAL economy is so weak and
US growth so anaemic that interest
rates are unlikely to rise until late
2014, the Federal Reserve announced
last night.
Markets rose on the highly accom-
modative policy announcement,
buoyed by the promise of cheap
money for years to come. The Dow
Jones rose 0.38 per cent, the Standard
& Poors 100 jumped 0.53 per cent, and
gold broke the $1,700 mark, rising 2.14
per cent in the day.
Slowing global growth, falling busi-
ness investment and the weak hous-
ing market, combined with
below-target inflation forecasts mean
there is room for further loosening,
the Fed said.
As a result, Operation Twist will
continue, with the central bank
increasing the average maturity of its
bond holdings to push down long-
term interest rates further.
For the first time ever the outlook of
each member of the Federal Open
Markets Committee was made public.
Two of the 17 members believe rates
should stay low until 2016, and three
want no rise before 2015.
However, not all analysts believe this
new transparency is beneficial.
In the future it might regret this
decision to publish forecasts at times
the ability to surprise markets is
important, argued Lombard Street
Researchs Dario Perkins.
BY DAVID HELLIER
FINANCIAL CRIME
BY TIM WALLACE
US ECONOMY
www.cityam.com Issue 1,557 Thursday 26 January 2012 FREE

SNOW
SQUABBLES
LEADERS AND
BANKERS SNIPE
IN DAVOS P18-19
BLOW FOR OSBORNE AS
ECONOMY SHRINKS
GDP TURNS SOUTH P2, P4
BUSINESS WITH PERSONALITY
Certified Distribution
28/11/11 till 01/01/12 is 92,879
US HEDGIE FINED 7M
OVER CITY SCANDAL
Greenlights owner David Einhorn says the fine is unjust Picture: GETTY
News
2 CITYA.M. 26 JANUARY 2012
Eurozone hit
by debt woes
DEBT crises in Greece and Portugal
showed no signs of abating yester-
day, yet elsewhere in the Eurozone
periphery Ireland successfully
accessed bond markets for the first
time since its bailout.
While Irelands government
appears to be recovering relatively
well since accepting an internation-
al rescue package in 2010, Portugal
may need a further 30bn in EU and
IMF rescue funds, one of its chief
business leaders said yesterday.
Ill dare to say we have a credit
crunch... What is lacking is 30bn,
claimed Antonio Saraiva, head of
Portugals main industry confedera-
tion.
Saraivas call echoed an earlier
warning from Carlos Pina, a govern-
ment official who negotiated the
countrys bailout. Portugal may
need a further 20-25bn in rescue
funds to finance public companies,
Pina has said.
Borrowing costs for the
Portuguese authorities soared to a
Eurozone-era record high yesterday,
reflecting fears that the public
finances are not sustainable.
Yields on three-year government
bonds struck an eye-watering 19.4
per cent, while five-years reached
18.8 per cent.
Conversely, at an Irish bond swap,
fresh three-years were made avail-
able with a yield of just 5.15 per
cent designed to tempt holders of
bonds due for expiry in January
2014. In the end around 30 per cent
of that debt was swapped for the
new later-dated bonds, surprising
on the up side.
Yet the efforts of Greek authori-
ties to negotiate a debt swap with
private holders continue to drag on.
Both sides confirmed that Charles
Dallara, head of the Institute of
International Finance (IIF), returns
to Athens today for yet another
attempt to kick-start the talks.
The government aims to com-
plete negotiations on the debt swap
as early as this week, said govern-
ment spokesman Pantelis Kapsis
yesterday, remaining upbeat.
We are now in the most delicate
phase of the negotiations to com-
plete the debt swap ... It is clear that
what happens in the coming days
will affect the countrys course for
years, he added.
The IIF a body that represents
private holders of Greek debt said
yesterday that it is sending a team
of experts to Greece to continue
negotiations with the Greek govern-
ment on legal and technical issues.
The IIF is keen to agree on all
outstanding legal and technical
issues as soon as possible, it says.
As with the previous occasion
when talks broke down, the stick-
ing point seems to remain the rate
of interest of new bonds. Private
holders are said to be holding out
on their final offer to accept new
bonds that pay out four per cent.
MERKEL AT DAVOS: P18-19
BY JULIAN HARRIS
EUROZONE
NORWEGIAN CARRIER AIMS HIGH

WITH 222 AIRCRAFT ORDERS
Norwegian Air Shuttle plans to buy
222 new aircraft worth $21.1bn from
Boeing and Airbus in a move that her-
alds its ambition to become one of
Europes leading low-cost airlines.
Boeing secured its largest ever
European deal through a firm order
by the Oslo-based airline for 122 737
narrow-body aircraft, worth $11.4bn
at list prices.
MEGAUPLOAD FOUNDER DENIED BAIL
Kim Dotcom, the founder of
Megaupload, the file-sharing website
shut down last week in one of the
largest criminal copyright cases
brought by US authorities, will
remain in a New Zealand jail after his
request for bail was refused. In a 20-
page written ruling, a judge in
Auckland said there was significant
risk that Mr Dotcom, a German
national, would flee the country.
THE SUNNY SIDE OF GLOBAL WARMING
FOR UK
A dire vision of violent storms, fatal
floods and shriveled crops is often
predicted in reports on global warm-
ing. But a gentler world of blueberry
farms, shoals of plaice and fewer win-
try deaths may also emerge as a result
of the changing climate, according to
a UK government study published
today.
EGYPTIANS URGE CIVILIAN RULE A
YEAR ON FROM REVOLT
The first commemoration of Egypts
revolution became a massive politi-
cised protest against the power of the
armed forces that continue to lord.
Hundreds of thousands of Egyptians
marched into central Cairos Tahrir
Square, the epicentre of last years 18-
day revolt, demanding an immediate
end to military rule and shouting slo-
gans against the ruling Supreme
Council of the Armed Forces.
TELL US TO PAY MORE TAX AND WE
WILL, SAYS BILLIONAIRE
A billionaire co-founder of one of the
worlds biggest private equity funds
has challenged governments to set
higher tax rates after backing Mitt
Romney over the low rate that the
Republican candidate paid on his
earnings. David Rubenstein, the man-
aging director of Carlyle Group, said
the private equity industry would
happily pay more taxes but it was up
to governments to enforce the level.
CITY SLICKER TURNS ITS SIGHTS ON
GRAND OLD MAN OF STOCKBROKING
Cenkos Securities wants to merge with
Panmure Gordon, its blue-blooded
rival broker. Cenkos, now run by the
corporate financier Jimmy Durkin,
has bypassed Panmures management
and directly approached QInvest, its
biggest shareholder, with a proposal
for a nil-premium all-share merger.
O2 SHARED MOBILE NUMBERS WITH
WEBSITES
O2 has apologised for an error that
shared users mobile phone numbers
with the websites they visited. An
experiment set up by Lewis Peckover, a
28-year-old web systems administrator,
called attention to the problem last
night. Peckover showed that O2 was
providing websites with the mobile
number of users who visited.
CHANNEL 4 SET TO REPORT DEFICIT FOR
2012
The broadcaster will increase its spend-
ing on UK programmes from around
360m in 2010 to nearly 450m, partly
funded from a 50m surplus generated
in 2010 and by reallocating money
which would have been spent on acqui-
sitions from overseas. Instead, the
remainder of the funding injection
will come from Channel 4 reserves,
leaving the broadcaster in deficit.
SANDISK PROFIT FALLS 42 PER CENT
A day after electronics giant Apple
reported record iPhone sales, SanDisk
provided soft guidance that suggests
the rest of the mobile industry isn't
doing as well. SanDisk which makes
flash memory for smartphones,
tablets and other devices forecast
first-quarter revenue of $1.3bn to
$1.35bn, below the $1.46bn expected
by analysts.
XEROX FOURTH QUARTER PROFIT RISES
Xerox met its fourth quarter profit tar-
get with help from its services opera-
tion, but the company indicated
economic weakness, particularly in
Europe, will weigh on its business this
year. Xerox continues to win contracts
to outsource business technology and
back-office functions. But its tradition-
al printer-and-copier business is strug-
gling to show growth, and weakness in
the economy looms as a threat.
WHAT THE OTHER PAPERS SAY THIS MORNING
Coalition deeply confused on growth
IT is hard to understand what the
coalition is playing at. Britains econo-
my is stagnating, GDP appears to have
shrunk in the last three months of
2011 and yet the government exudes
no sense of emergency, no impression
that it realises that we are in a nation-
al crisis and that radical, drastic and
unpopular action must be taken. The
mood music remains deeply imbal-
anced and dangerously anti-capitalist
and hence anti-growth; rhetoric mat-
ters as it helps set the zeitgeist. What
is needed now more than anything
else is to kick-start the corporate sector
to encourage it to hire and invest in
the UK, rather than accumulate cash
and invest abroad; instead, we get
incessant calls for wealth taxes, more
green taxes, more restrictions and red
tape, all of which will merely convince
businesses and entrepreneurs to sit on
their hands. The 52p tax rate, seen
internationally as a reason to avoid
the UK, will stay indefinitely.
It is of course right to tackle prob-
lems (such as rewards for failure) but
wrong only to focus on these kinds of
matters or to constantly seek to out-
flank the Labour party from the left.
How many more navel-grazing, pseu-
do-philosophical and pointless speech-
es about the nature of capitalism
must we be subjected to? Its madness:
people need jobs and growth, and
these will only come from profit-mak-
ing private companies. Yet listening to
the rhetoric, the only kinds of busi-
ness people the coalition like are
young, small wannabe entrepreneurs
(who are indeed great) but all other
(also very valuable) categories are con-
stantly criticised, told they are all
abusing the system or lectured that
their true market worth is far below
that of a footballer. There are of course
plenty of abuses and problems, some
of which are reported in todays City
A.M. but listening to the coalition
and our political class, abuse is all that
there is. That is utter tripe.
The endless banker-bashing persists,
even though the coalition desperately
needs a reformed City to start grow-
ing, hiring and exporting its services
again. The government should be pur-
suing a pro-market, anti-handout, pro-
competition and anti-corporatist
policy but doing that doesnt mean
reinforcing anti-business prejudices or
waging war on the very people who
need to be convinced to start investing
and hiring again. Its a question of bal-
ance, of emphasis.
Its also about real, tangible action,
rather than gimmicks, announced, re-
announced and re-re-announced.
There have been no substantial, epoch-
defining changes to the regulations
and red tape that cripple the labour
market. Speeches on getting rid of
health and safety excesses turn out to
be about trivial tweaks. The Beecroft
labour reforms have been diluted out
of all recognition. Continuously hit-
ting the City while saddling manufac-
turing with expensive energy policies
and slapping an ill-thought out tax on
North Sea oil and gas companies that
has led to a drop in production is stu-
pid. No wonder it sometimes seems as
if the UK is being rebalanced from
growth to stagnation.
The Prime Ministers speech to the
Council of Europe yesterday calling
for reform of the European Court of
Human Rights was eloquent; it was
also pointless. Reform wont happen.
The coalition thinks it is prioritis-
ing growth. It isnt not even remote-
ly. The spending squeeze is right and
necessary, and must remain intact.
Apart from that, the coalition needs to
tear up its policies and start again.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
The IIF, led by Charles Dallara, is returning to Athens for talks Picture: REUTERS
NEWS | IN BRIEF
Senate starts HSBC investigation
HSBC Holdings is being investigated for
money-laundering by a US Senate panel,
which could result in a congressional
hearing being scheduled within a matter
of months. While the focus of the probe
is not yet known, this is the latest in a
string of banks exposed by US officials
for managing transactions on behalf of
countries believed to sustain corruption
and criminal activity. Global banks have
forked out more than $1.2bn in penalties
since 2008 for violating anti-money
laundering regulations.
Goldmans London HQ to be sold
Chinese real estate investor Gaw Capital
Partners is in talks to buy Goldman
Sachs' London HQ for about 300m in
the latest deal underlining the safe haven
appeal of the city's property market, a
source said. Gaw, through its Downtown
Properties vehicle, is in the final stages of
talks to do the deal for the block on
London's Fleet Street, the source familiar
with Gaw's plans said. The Peterborough
Court and Daniel House properties are let
to the US bank until June 2026, and was
put on the market after former owner
Jesta defaulted on debt repayments.
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
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self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editors
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Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Gavin Billenness
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
SPECULATION of an imminent pub-
lic offering from Facebook has been
reignited by the social networking
companys suspension of trading on
the private secondary market.
While deal-making will operate as
normal, Facebooks lawyers Fenwick
& West will not approve transactions
for the remainder of the business
week.
Zuckerbergs empire has said the
move is to perform shareholder
record audits and declined to com-
ment on the probability of a loom-
ing IPO.
Unlisted companies sometimes
suspend secondary trading before
going public or making a big
announcement to prevent people
buying or selling before others have
seen the new information.
Jive suspended trading before
floating in December last year.
However, Groupon and Zynga, two
other prominent tech IPOs from
2011, did not.
Facebook has suspended trading
before, in order to review its share-
holder list leading some to deny
any link between this weeks move
and the imminence of a flotation.
Rumours of an early-2012 public
offering from the social networking
site have been circulating vigorously
in recent months, sparked by expec-
tations that Facebook would reach
the 500-shareholder limit for an
unlisted company by the end of last
year and be required to publish its
finances.
The flotation, expected in May,
could see Facebook attempt to raise
$10bn (6.4bn), leading to a company
valuation of $100bn.
However Sharespost, a service
which facilitates trading on the sec-
ondary market, currently values
Facebook at $74.3bn.
A public offering in the next few
weeks would coincide with the
eighth anniversary of Facebook,
which Zuckerberg launched as
thefacebook.com on 4 February
2004.
The company is thought to have
brought in around $4bn in revenues
last year.
Rumours of a
Facebook IPO
on trade halt
THE BRITISH government has no
choice but to continue with plans to
reduce its annual deficit, the head
of the International Monetary Fund
(IMF) said last night.
Former French finance minister
Christine Lagarde (right) recently
recommended that some govern-
ments had scope to slow down aus-
terity measures in the face of strong
economic headwinds.
But yesterday she stated that the
UK is not one of them. Those coun-
tries that have fiscal space and that
can slow down their fiscal consoli-
dation efforts are very few, and Im
afraid Britain is not in that particu-
lar group, she told
Channel 4 News.
On a more upbeat
note, Lagarde insist-
ed that the IMF
expects Britain to
return to levels of
growth that will help
tackle rising unem-
ployment. If you look
at our forecast for 2012-
2013, were clearly see-
ing an improvement
going from 0.6 per
cent positive to then two per cent
positive, she said.
Earlier in the day the IMF warned
that global crude prices could rise as
much as 30 per cent if Iran halts oil
exports as a result of US and
European Union sanctions.
If Iran halts exports to countries
without offsets from other sources
it would likely trigger an initial
oil price jump of 20 to 30 per
cent, or about $20 to $30 a
barrel, the IMF said in its
first public comment on a
possible Iranian oil supply
disruption.
FEARS OF UK SLUMP: P4
Lagarde: UK must cut deficit
BY LAUREN DAVIDSON
TECHNOLOGY
Mark Zuckerberg is expected to take Facebook public by May Picture: REUTERS

BY JULIAN HARRIS
UK ECONOMY
News
Salmond sets terms for
Scots independence vote
SCOTTISH first minister Alex
Salmond claimed he could be leading
a sovereign nation by 2016 after set-
ting out details of a proposed inde-
pendence referendum.
The Scottish National Party (SNP)
leader chose Burns Night to defy
David Cameron and announce his
partys plans for a vote in late 2014 on
the matter of dissolving the 304-year
union with England.
He also said that the referendum
would ask a simple question: Do you
agree that Scotland should be an
independent country?
Independence would involve disen-
tangling the complex financial sys-
tems that connect the two countries
and allocating an appropriate share
of the UKs national debt.
The SNP say Scotland would contin-
ue to use sterling and rely on the
Bank of England as lender of last
resort. This would give it little control
over interest rates.
Recent polls indicate around 3040
per cent of the Scottish electorate
support independence.
POLITICS
Fears of new
slump after
GDP shrinks
BANK lending continued to slow in
December, but remains up on 2010s
figures according to data published
yesterday by the British Bankers
Association (BBA).
New mortgage lending hit 8.7bn
in the month, 12 per cent higher than
in December of 2010 and the
strongest month of 2011.
However, annual net growth in the
sector slowed to just 1.5 per cent its
lowest rate in the decade of available
figures largely thanks to rising
repayments.
Consumer credit shrank by 1.4 per
cent in 2011. After a 0.2bn fall in
November, net lending held steady in
December in part, analysts believe,
because of increased spending in the
run up to Christmas.
Consumer appetite for taking on
new borrowing is very low while
there is also a strong desire of many
consumers to reduce their debt, said
economist Howard Archer from IHS
Global Insight.
Consumers desire to get a tight
grip on their finances is clearly the
consequence of current heightened
concerns over the outlook for the
economy and jobs.
Lending to non-financial business-
es fell 2.3bn in the month, after a
0.4bn rise in November. The BBA
blamed weak demand for credit.
Meanwhile financial businesses cut
total debt by 3bn in the month, slow-
ing from a 12.7bn decline in the pre-
vious month.
Lending slows
as consumers
pay back more
UK ECONOMY
Economics
Sir Mervyn Kings Bank will be watching GDP anxiously Picture: REUTERS
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BHARPT JOSHR | DENSITRON TECHNOLOGY
I think weve been in a recession since the end of last year. I know from
experience that most companies are only offering temporary or short term
contracts and they see the numbers.
DUNCAN MULGREW | METS LTD
Personally our company is doing its best business in ten years, although we
are quite specialist. I know the housing industry is struggling which is
always a bad sign.
MATTHEW JOPP | SK TECHNOLOGIES
I work in the private development industry and we have actually seen
our numbers pick up compared to last 18 months, so Im optimistic
that were not in recession.
CITY VIEWS: IS THE UK IN RECESSION?
Interviews by Raymond Doherty GDP FELL in the final three months of
2011, according to early estimates
from the Office for National Statistics,
published yesterday.
Economic output appears to have
declined by 0.2 per cent, with 40 per
cent of available data analysed so far.
Such a decline leaves GDP growth
for the whole of 2011 at 0.9 per cent.
Prime Minister David Cameron
blamed the Eurozone crisis and
squeezed household incomes for the
decline, describing the figures as dis-
appointing while attacking Labours
demands for more spending.
Opposition leader Ed Miliband hit
out at Cameron, describing him as a
byword for self-satisfied, smug compla-
cency and urging him to abandon the
current deficit reduction plan on the
basis that it was responsible for cut-
ting growth and pushing up unem-
ployment.
Manufacturing led the fall over the
three months, with output down 0.9
per cent on the quarter and registering
no growth compared with the same
period of 2010.
The mild winter months led to a fall
in electricity and gas use, which fell 4.1
per cent on the month and 8.3 per
cent on the final quarter of 2010.
Services which accounts for the
majority of GDP held steady in the
quarter.
Within that headline figure, some
sectors expanded while others
declined.
Government output increased by
0.4 per cent in the quarter and 2.5 per
cent on the same period of 2011.
Healthcare led the rise as, despite a
budget freeze, the number of proce-
dures increased.
Meanwhile output in the distribu-
tion, hotels and restaurants sector
declined 0.5 per cent in the quarter,
though still expanded 0.7 per cent on
the year.
Construction suffered a 0.5 per cent
fall in output in the quarter, and the
same fall compared with the fourth
quarter of 2010.
However, as it accounts for only
around seven per cent of GDP it is not
significant enough to impact on the
overall economic growth figures.
We believe output is likely to
decline in the first quarter of 2012,
which would mean the UK has re-
entered a technical recession, said
Investec economist Philip Shaw.
What is more important than the
double dip or not debate is the broad
shape of the economic outlook. Of
course there is little clarity here, but
tentative signs towards a resolution of
the Eurozone crisis help us to main-
tain our central case of a shallow
upturn.
BY TIM WALLACE
UK ECONOMY
ANALYSIS l Economic growth has tailed off

%qon q
2008
Q2
2008
Q4
2009
Q2
2009
Q4
2010
Q2
2010
Q4
2011
Q2
2011
Q4
1.5
1
0
0.5
-0.5
-1
-1.5
-2
-2.5
Cost of raising
children jumps
to new records
THE EUROZONE crisis hit manufac-
turers in the final three months of
2011, according to the CBIs industri-
al trends survey published yester-
day.
Output stagnated, with a net bal-
ance of just two per cent of firms
reporting an expansion, and 15 per
cent reporting a fall in new orders
the first such drop in two years.
Sentiment fell in the quarter with
a net balance of 25 per cent of firms
feeling less optimistic about busi-
ness conditions than they were
three months ago a steep drop,
but slowing slightly on the 30 per
cent tracked in the previous quarter.
A net balance of 20 per cent are
also increasingly pessimistic about
the year ahead.
The Eurozone crisis is the single
biggest factor dragging down manu-
facturing, which is a particularly
export-oriented sector, said CBI
boss John Cridland.
A resolution would help the
economy. The biggest missing link is
the stability fund, and the responsi-
bility lies with politicians to boost
that to over 1 trillion (0.843 tril-
lion) and ensure it can support
Italy.
The weak state of the manufactur-
ing sector did not hit jobs, however,
with a net balance of 11 per cent of
firms increasing employment.
This is in part due to employers
concerns over retaining skilled
staff, said CBI economist Ian
McCafferty.
Also low wage settlements have
helped firms keep on more staff.
UK factories
hit by woes
in Eurozone
BY TIM WALLACE
UK ECONOMY
Economics
BY TIM WALLACE
UK ECONOMY
CHILDCARE, education and food

costs have all hit parents pockets,
pushing the cost of raising a child to
new highs, according to a study pub-
lished today by Liverpool Victoria
(LV).
The cost of raising a child until
they are 21 stands at 218,024, the
research estimates.
Education costs rose 5.1 per cent
over the last year to 71,780. Over
40,000 comes from university costs
and fees, and the remainder includes
school uniforms, bus fares and trips.
Since the report was first carried
out in 2003, education costs have
risen 120 per cent.
Food spending jumped four per
cent in the year, and 25 per cent
since 2003, to 18,667, whilst child-
care and babysitting now costs
62,099 up 2.7 per cent on the year
and 57 per cent since 2003.
In response to soaring costs, two-
thirds of parents are planning to
seek out more low-price items in
their weekly shop this year, while
one-third are increasingly selling
items online and in car boot sales to
raise extra cash.
Despite an uncertain economy
forcing more pressure on the budget,
its clear parents dont begrudge the
money they spend on children, and
would rather do without themselves
than radically cut back on what they
can provide, said LVs Mark Jones.
ANALYSIS l Factory output has stagnated
%balance
reportinggrowth
Past 3 months
Next 3 months
00 Year 04 03 02 01 05 06 07 09 08 10 11 12
30
20
10
0
-10
-20
-30
-40
-50
-60
TOTAL
218,024
Education*
71,780
Leisure
7,303
Hobbies & Toys
9,248
Other
13,761
Personal care
1,143
Furniture
3,373
Food
18,667
Clothing
10,781
Childcare
62,099
Pocket Money
4,337
Holidays
15,532
218,000: the
cost of raising
just one child
*does not include private school fees
WORK HAS stopped on the Pinnacle
skyscraper on Bishopsgate for a second
time, as the developer struggles to
find enough pre-let tenants.
Construction officially halted last
week with the tower just seven storeys
high. However, City sources say work
had been very slow over recent
months, making possible tenants
more reluctant to consider the build-
ing.
Work first stopped last year, restart-
ing in September after developer Arab
Investments secured a new tranche of
funding from HSBC and HSH
Nordbank.
Arab had embarked on
a fresh capital drive in
2010 but failed to keep
construction work going,
as reported in City A.M.
(below).
And now conditions
on the funding requir-
ing a certain level of
pre-let deals appear to
have kicked in again.
Around 10 per cent
of the 945 foot-tall
Pinnacle, also known
as the Helter Skelter,
has reportedly been
let.
The City leasing
market is diffi-
cult The Pinnacle is a statement
building, a very adventurous project,
but how many possible tenants are
prepared to make a statement like
that in the current climate? said one
property source, who declined to be
named.
The 800m tower has already fallen
behind its original schedule and cur-
rently has a completion target of 2015.
The Pinnacle, if it is finished on time,
will come to market more than a year
after rival developments including
Land Securities Walkie Talkie tower
on Fenchurch Street and British
Lands Cheesegrater project.
Agents for the skyscrapers are com-
peting for a dwindling number of
large tenants looking to pre-let a size-
able chunk of a tower. Schroders sus-
pended its search for up to
2 5 0 , 0 0 0
square feet
of office
space in
D e c e mb e r
amid econom-
ic uncertainty.
A r a b
I nvestments
along with CB
Richard Ellis
and Savills, the
joint leasing
agents on the
tower, were
unavailable for
comment yester-
day.
BNY extends
its stay with
Canary Wharf
BY MARION DAKERS
PROPERTY
News
Work on the Pinnacle halts
again amid tenant drought
BNY MELLON has decided to stay put
at its offices in Canary Wharf with
the US bank renewing its lease at
One Canada Square for a further
eight years.
The bank, which is leasing six
floors at the top of the 50-storey sky-
scraper, has signed a new term with
its landlord Canary Wharf Group,
beginning 1 January 2014 at a rent of
42.50 per square feet.
The property firm, owned by
Songbird Estates, has agreed a rent-
free period of 18 months from 1
January 2014.
Richard Archer, head of leasing at
Canary Wharf Group, said: BNY
Mellon has been a highly valued ten-
ant at Canary Wharf for over 13 years
and we are delighted that it has
agreed to extend its occupation at
Canary Wharf. This is another vote of
confidence in both Canary Wharf
and London.
One Canada Square is Britains
tallest operational building, but it is
due to be knocked off its perch by the
Shard at London Bridge, which is due
to be completed this year.
Canary Wharfs chief executive
George Iacobescu also announced
plans last week to radically expand
its east London estate after buying
out its partners in the Wood Wharf, a
semi-derelict site next to Canary
Wharf, where it intends to build a
new office and residential district.
BY KASMIRA JEFFORD
PROPERTY
One Canada Square

is Londons tallest
operational building
Picture: MICHA
THEINER/CITY A.M
www.cityam.com
Issue 1,272 Friday 26 November 2010
FRE
MPC RIFT
BREAKS OU
POSEN ACCUSE
BOES KING OF POLITICAL BIAS P
BUYING A HOME NEXT TO
A TOP STATE SCHOOL
FRIDAY PROPERTY SECTION P25
BUSINESS WITH PERSONALITY
THE DEVELOPER of the Pinnacle sky-
scraper is scrambling to secure extra
funding to avoid being forced to halt
construction on the 945-foot tower. Arab Investments (AI) has mad plea tosome f h
bank might offer a smaller loan if AI
can lock down a pre-let deal for more
than 150,000 feet. AIs managing director Khalid
Affara said it made sense to return to
its original investors rather th accept thete
towers by listed firms leaves the
Pinnacle in an increasingly crowded
market when it is ready for tenants in
early 2013. Theyve
PINNACLE
APPEALS TO
KEEP ICONIC
TOW
ER ALIVE
Amount of funding secured:
330m
33%
Funding will pay for: three complete floors
5%
Developer could be forced to halt work
next year unless it can secure extra funding BY MARION DAKERS
EXCLUSIVE
ANALYSIS l Songbird Estates

p
19Jan 20Jan 23Jan 24Jan 25 Jan
117
115
116
118
114
113
112
111
111.00
25 Jan
NEW8 FROM THE
CTY OF LONDON
Get City news, info and offers at
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War stories at
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ersonal accounts of the Second World War are brought to
life through letters, stories and film at London Metropolitan
Archives, EC1, on 31 January from 10.30am to 3.30pm.
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Barbican Children's Library
launches a children's literacy
project on 4 February, as part of
National Libraries Day. The City
of London's libraries - Guildhall,
Barbican, City Business and
Shoe Lane run family events,
talks, guided tours and advice
sessions from 30 January to 4
February. Admission FREE
more details from
www.cityofIondon.gov.uk
Lord Mayor David Wootton
leads City business delegations
to Belfast, Liverpool and the
sle of Man this week. He said:
"As well as promoting London's
financial services during my
mayoralty, I am speaking up for
its support for the wider
economy to show that the City
of London cares about
manufacturing and what goes
on in the rest of the country."
Lord Mayor leads UK
business visits
Read all about it at
City libraries
P
News
A tale of two property developers
BUILD it and they will come. That
was the mantra which underpinned
speculative developments during
the boom years. These days its more
like show me the tenants and Ill
show you the money. Without a
confirmed pre-let, its awfully diffi-
cult for smaller developers to get
funding, hence why work on the so-
called Helter Skelter has stopped (see
story opposite).
There was better news from
Canary Wharf Group, which con-
vinced Bank of New York Mellon to
stay on in its offices on the top six
floors of 1 Canada Square (story also
opposite). The Wall Street bank will
pay 42.50 per square foot from
2014, a higher rate of rent than it
paid previously, we understand. This
suggests Canary Wharf Group is still
pushing up rents, especially for its
most premium office space.
So what do these two stories tell
us about the state of Londons com-
mercial property market? First, that
small-time developers such as Arab
Investments, the group behind the
Pinnacle, will struggle for the fore-
seeable future. They are no match
for listed giants like British Land and
Land Securities, who can use exist-
ing revenue streams to fund their
development programmes.
Second, that big financial institu-
tions still need offices with very
large floor plates such as One
Canada Square. Only Canary Wharf
and a handful of City buildings can
provide this kind of space, meaning
they will benefit enormously from
squeezed supply when leases are
renewed over the next few years.
That bodes well for the
Cheesegrater and Walkie-Talkie, but
makes it harder for the likes of the
Walbrook and Cannon Place.
BOTTOMLINE
Analysis by David Crow
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CITIGROUP is considering further
cuts to its securities and banking divi-
sion, raising the prospect of more
redundancies at its London offices.
The banks finance chief John
Gerspach told investors that losses in
the division were disappointing and
unacceptable and that the firm is
not oblivious to the fact that our cost
structure cannot be justified by our
current revenues.
Gerspach also revealed that the
divisions bonus pool had been
reduced by $800m (514m) in 2011.
We must either drive revenue
growth and operating leverage or we
will have to restructure, cut capacity
and cut expenses, he said in a confer-
ence call. While this is not a decision
that we will make in haste, it is also
not a decision that we will delay in
the name of long-term strategy,
The firm spent $1bn during 2011
on rebuilding the unit which
includes investment banking, private
equity and hedge fund operations
but has been disappointed by its per-
formance.
Citi employs around 10,000 staff in
London within a global workforce of
266,000. The firm is currently in the
process of laying off 5,000 employees
worldwide, including several hun-
dred in the UK.
The bank could not confirm how
potential redundancies would affect
specific regions but it is almost cer-
tain that London would be affected.
Citi cuts put
London bank
jobs at risk
THE HEAD of 3i Infrastructure yester-
day opened the way to spending
more cash despite the chill gripping
the deals market.
Cressida Hogg, managing partner,
said the firm is developing the
investment pipeline for the coming
months. It also said its portfolio is
performing well and delivering a
good yield.
The firm reported a cash balance
of 136.2m.
The group, which is set to battle
institutional investors in the fight to
buy Edinburgh airport from opera-
tor BAA, is also working on the pro-
curement process for the
governments 6bn overhaul of the
Thameslink rail line.
Yesterday in a statement for the
period from 1 October Hogg said her
firm is currently focusing on bring-
ing the Thameslink transaction to a
financial close.
Last year the Department for
Transport said the preferred bidder
for the supply of new Thameslink
trains will be 3i Infrastructure and
its partners Innisfree and Siements
Project Ventures.
Britains oldest private equity firm
3i Group floated the infrastructure
arm in 2007 and remains its invest-
ment adviser.
3i spin-off still
upbeat despite
market gloom
BY JAMES WATERSON
BANKING
INVESTMENTS
News
INVESTMENT manager Charles
Stanley has suffered a drop in rev-
enue from 32.2m to 27.3m for the
three months to 31 December.
The 15.5 per cent decrease was
largely a result of low trade volumes,
which meant commission income fell
from 16.6m to 10.6m.
The firm managed to boost fee
income by 5.8 per cent to 16.6m dur-
ing the same period.
Charles Stanley blamed reduced
bargain volumes caused by the poor
trading environment, euro uncertain-
ty and depressed UK economy for
the results but was keen to emphasise
that it had successfully retained
14.48bn of client funds, just down
on the 14.5bn it managed in March
2011.
The firm had previously issued a
profit warning in October. Shares
closed down 2.39 per cent at 265p.
Revenues fall 15 per cent
at broker Charles Stanley
Sir David Howard faces tough times as Charles Stanleys chairman
BY JAMES WATERSON
FINANCIAL SERVICES
ANALYSIS l Citigroup
US$
18Jan 19Jan 20Jan 23Jan 24Jan
30.50
30.00
29.50
29.00
28.50
28.00
29.96
25 Jan
GERMAN investment bank Dresdner
Kleinwort scrapped plans to pay 50m
(42m) in bonuses to its London
traders even though the City regulator
had been breathing down its neck
over the loss of staff, a court has heard.
Bankers were jumping ship to
Goldman Sachs, Citigroup and
Unicredit/HVB and the Financial
Services Authority had become con-
cerned about the effect of a possible
disorderly breakdown of Dresdner
Kleinwort, as the markets worsened in
late 2008, it is alleged.
The FSA, if I could put it colloquial-
ly, were breathing down the banks
neck to do something, said Andrew
Hochhauser QC yesterday.
A group of 104 former Dresdner
bankers claim binding and enforce-
able contractual promises mean they
are owed 50m from a guaranteed
minimum retention pool of 400m for
2008. They say the introduction of a
clause to reflect worsening perform-
ance, was a moving of the goalposts.
The claim, against Dresdner
Kleinwort and Commerzbank, now
the parent firm, covers sums ranging
from 15,000 to 2m which were due
to have been paid in January 2009.
Stefan Jentzsch, then chief executive
of Dresdner Kleinwort Investment
Bank, said in 2008 the cash would be
paid no matter what as part of
efforts to retain staff amid a re-organi-
sation of Dresdner group. This had
sparked anxiety over job security, said
Hochhauser, who is representing 21 of
the bankers.
Allianz which owned Dresdners
investment bank before it was sold to
Commerzbank in January 2009
feared a mass exodus of staff could
have disastrous consequences.
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 and said it is mounting a
vigorous defence. Its rebuttal is
expected to begin today.
Bankers bid
for 50m in
bonus battle
A KEY Whitehall committee will meet
this week to discuss whether Sir Fred
Goodwin should be stripped of his
knighthood, David Cameron has said.
The Honours Forfeiture Committee
will consider all of the evidence,
the Prime Minister said yesterday. The
evidence will include the FSAs damn-
ing report on the near-collapse of
Royal Bank of Scotland. City A.M.
understands, however, that a final
decision will not be made for at least
a fortnight. Goodwin was knighted in
2004 for services to banking.
Meanwhile Goodwins successor,
Stephen Hester, is expected to receive
a bonus of less than 1m. The govern-
ment has put huge pressure on RBS
and it is understood talks are contin-
uing. The Treasury has demanded the
bonus is paid entirely in shares and is
deferred.
Hester is entitled to a salary and
bonus of up to 7.6m, including up to
4m in share-based payments, but
this is unlikely because the banks
stock closed at 26.75p last night well
below the governments break-even
price of 51p.
The Treasury said no decision had
been made. Cameron has previously
said RBSs bonus pool will be lower
this year.
Goodwins gong under threat from civil
servants as pressure grows on Hester
BY PETER EDWARDS
BANKING
BY PETER EDWARDS
BANKING
News
FORMER LLOYDS BOSS ERIC DANIELS JOINS STORMHARBOUR
ERIC Daniels, the
former group chief
executive of Lloyds
Banking Group, is
joining
StormHarbour as
principal and sen-
ior adviser with
immediate effect.
Daniels, who
retired from Lloyds
a year ago, has the
highest profile yet
of any of the profes-
sionals that have
joined the inde-
pendent boutique
investment bank,
which was formed
early in 2009.
Picture: REX
PROJECT Beetle was the name used
for a 350m fund-raising in 2009 that
led to a critical reduction in Punch
Taverns 4bn debt pile.
Those who worked on the ultimate-
ly successful transaction, which
included bankers from Bank of
America Merrill Lynch (BAML) and
Goldman Sachs, and lawyers from
Slaughter & May, had every reason to
celebrate the deal and move on to the
next.
But for one investment banker and
one US hedge fund manager, their
involvement in Beetle has had mas-
sive repercussions.
On the website of the Financial
Services Authority (FSA) there is one
word alongside former BAML banker
Andrew Osbornes name: inactive.
His inactivity, since December of
last year, has everything to do with a
conversation he was involved in dur-
ing the marketing of the Punch
Taverns fundraising, which yesterday
led to a 7.2m fine for David Einhorn
and his firm Greenlight Capital.
Opinions vary as to whether
Osborne, or Oz as he is affectionately
known in the City, was just naive or
unlucky in regard to Einhorn, a large
investor in Punch Taverns.
The FSA has spent months investi-
gating events leading up to the 16
June public announcement of the
Punch Taverns open offer and share
placing.
In particular investigators focused
on a conversation that included
Osborne, Einhorn, Jim White, then of
Goldman Sachs, and the then Punch
chief executive Giles Thorley, in the
early part of June that year.
As is usual, Osborne, as the compa-
nys corporate broker, wanted
Einhorn, a large shareholder in
Punch, to be pre-warned about the
imminent transaction so that he
might support it.
Unusually, when Osborne asked
Einhorn whether he would wall
cross (or become an insider to the
issue, which would involve not buying
or selling any shares in Punch for an
agreed number of days), the American
refused.
Bankers said that this would have
been an unusual situation and a diffi-
cult one for Osborne to deal with. 99
times out of 100 a shareholder agrees
to being made an insider, as long as
you give them an idea how long they
will be unable to trade for, said a
source yesterday.
Friends say that
Osborne then brought
the conversation to a
close but regulators
appear to have judged
that some information
about the rights issue
was indeed passed on to
the hedge fund trader,
albeit not deliberately.
Einhorn is a confronta-
tional character who
famously shorted shares in
Lehman Brothers ahead of
its collapse and who pub-
licly took on the banks
then finance director Erin
Callan, rightly suggesting
that she was being too opti-
mistic about the bank.
At one point Einhorn was Punch
Taverns largest shareholder. However
ahead of the public announcement of
the fund-raising there were four sepa-
rate announcements, all in June,
showing that he had reduced his stake
in the company.
The stake went from 13.3 per cent
on 1 June to 8.98 per cent on 15 June,
the day the details of
the deal were
announced to the
stock market. The
FSA said his deal-
ings saved the
funds losses of
5.8m.
Greenlight and
QVT became vigor-
ous opponents of the
fund-raising deal and
their opposition near-
ly led to it being voted
down.
Needing a
shareholder vote of 75 per cent, Punch
recorded a narrow victory of 75.1 per
cent. Although the deal resulted in
Punchs share price falling 44p to
104p on 15 June, it was broadly wel-
comed in the City because of its stabil-
ising influence on the groups
long-term prospects.
Osborne is expected to be given a
fine by the FSA, but he is said to be
confident he will not be banned from
working in the City. Friends of
the Welsh rugby-lover said
last night he had been
approached by a number
of banks who are inter-
ested in hiring him and
that he has been offered
at least one non-execu-
tive chairmanship.
But they said he was
unlikely to take a new
position until the
whole FSA matter had
been resolved and as of
yesterday his dealings
with the FSA were still
ongoing.
Focus on insider scandal
How Project Beetle sent a City rain
US fund manager scuttling
BY DAVID HELLIER
REGULATION
Rainmaker: Andrew Osborne

quit BAML in December
Focus on insider scandal
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MORE NEWS
ONLINE AT
www.cityam.com
@
@
maker and a
THE PUNCH Taverns case hinges on
the interpretation of a term used by
investment bankers: wall crossing.
A company or one of its advisers
will ask a shareholder to wall cross
for the purposes of marketing a deal
to them, like an acquisition or a
fund-raising.
If a shareholder agrees to be wall
crossed it means that they can not
trade in the shares of the company
for a set period ahead of a transac-
tion.
If a shareholder declines to be wall
crossed, as in this case, an adviser
should stop the conversation there
and then, says Ruth Gevers, former-
ly of the FSAs market conduct team.
The FSA said yesterday that a mat-
ter of minutes after a telephone con-
versation had concluded with a
corporate broker, Einhorn gave
instructions to sell all of
Greenlights holding in Punch.
At this point the advisers in the
room had a responsibility to make a
Suspicious Transactions Report to
the FSA.
Advisers on a deal, like Project
Beetle, also have an insiders list
which the FSA can ask for.
Wall crossing
at centre of
FSAs probe
REGULATION
News
BRITVIC shares enjoyed a 3.44 per
cent rise yesterday after the soft
drinks maker and distributor
reported a rise in revenues and big
market share gains for Pepsi, which
it makes and distributes under
licence in the UK.
The maker of Robinsons, Tango
and J2O said first quarter revenue
rose 2.5 per cent at constant
exchange rates to 295.2m, driven
by growth in its UK, French and
international division.
The FTSE 250 companys carbon-
ated drinks division performed par-
ticularly strongly, with a revenue
rise of 5.8 per cent driven by Pepsi,
which Britvic said had
substantially grown its
share in the take-home
cola market.
In France, where it
owns the Teisseire
brand, Britvic grew sales
by 12.6 per cent after
increasing its share of
the syrups market.
However, Britvic suf-
fered a further slump in
its Irish business, where
it sells own-brand
MiWadi and Ballygowan
soft drinks.
Revenues fell 10 per
cent due to price cuts
and a 0.2 per cent dip in sales vol-
umes.
The group said half of the sales
decline in Ireland stemmed from
weakness at its wholesale business,
which distributes third-party
brands to pubs and bars.
Britvics stills division also deliv-
ered a weaker-than-expected per-
formance, with revenues declining
by 1.7 per cent in the period.
As a result, analysts at Panmure
Gordon downgraded their pre-tax
forecasts for 2012 by 4m to 116m
for British still and by 6m to
131m for the groups Irish division.
Chief executive Paul Moody said
in a statement: We expect the gen-
eral economic and trading environ-
ments to remain
challenging but, despite
this caution, we are con-
fident in our ability to
deliver another solid set
of results for the year
ahead, in line with our
expectations.
The company is
expanding in the US
where it will start man-
ufacturing its childrens
Fruit Shoot brand for
the first time. It also
signed several deals,
that will see it double
its Fruit Shoot distribu-
tion to six states.
Pepsi adds fizz to
Britvic after Irish
drink sales decline
BY KASMIRA JEFFORD
RETAIL
Strong food shop performance

has boosted jobs, retailers say
RETAIL employment rose in the final
quarter of 2011 as food shops pros-
pered, reversing declines seen in the
previous six months, figures from the
British Retail Consortium (BRC)
showed yesterday.
The final three months of the year
saw a 0.5 per cent rise in retail employ-
ment compared with the same quar-
ter of 2010 equivalent to 4,074
additional jobs.
Over the same period the number of
retail outlets grew by one per cent.
The rise marks a sharp turnaround
from the 0.8 per cent decline in jobs in
the third quarter, year on year.
Employment by food retailers rose
in each month of the final quarter.
However, non-food shops appear to
have hired temporary Christmas staff
for shorter periods of time than in
2010, to avoid the extra red tape result-
ing from new agency workers rules.
BY TIM WALLACE
UK ECONOMY
ANALYSIS l Retail Employment

Quarterly change on previous year
Q4
2009
Q1
10
Q2
10
Q3
10
Q4
10
Q1
11
Q2
11
Q3
11
Q4
11
4
3
2
1
1
.6
%
1
.9
%
2
.1
%
0
.6
%
0
.5
%
0
.5
%
-
0
.4
%
-
0
.8
%
0
-1
3
.6
%
WH SMITH cheered investors yesterday
after the books and stationery retailer
posted an improvement in profit mar-
gins despite sales continuing to fall.
Chief executive Kate Swann said the
group had delivered a resilient per-
formance in a challenging market
after like-for-like sales fell five per cent
for the 21 weeks to 21 January.
The FTSE 250 firm, which has 612
high street shops and 561 in travel
locations, said sales were hit by a lack
of strong titles this Christmas com-
pared with last year, when Jamies 30-
Minute Meals and Tony Blairs
biography flew off the shelves.
At its high street division, like-for-
like sales fell six per cent as consumer
confidence remained weak.
Under Swanns leadership, the com-
pany has been focusing on offsetting
shrinking sales with higher margin
products and cutting costs, which has
led to an increase in profits over the
past seven years.
She has also rebalanced WH Smiths
high street and travel businesses and
the firms mix of products away from
entertainment products such as CDs
and DVDs, which now count for less
than five per cent of its sales.
As a result of this, the months of
November and December now repre-
sent less than half of annual group
profit compared to over 90 per cent of
group profit six years ago, Swann
said.
Shares rose 4.32 per cent to 554p.
Shop slump
fails to faze
WH Smith
ASDA, the British arm of US retailer
Wal-Mart, has signed a franchise deal
with a Lebanon-based firm to take its
George budget fashion brand to the
Middle East.
The UKs second largest supermar-
ket said in a statement yesterday that
the Azadea Group, headquartered in
Beirut, would explore options for its
George label in the Middle East, with-
out mentioning the location or the
number of stores it intends to open.
Meanwhile, the group has also
signed a second franchise deal with
retailer SandpiperCI, based in the
Channel Islands, to open George out-
lets in both Jersey and Guernsey.
Last year, Asda announced its inten-
tion to establish a small number of
pilot George stores, which it plans to
open in 2012.
George, which was launched 20
years ago, currently accounts for
around half of Asdas general mer-
chandise sales. The supermarket said
22.5m shoppers, or half of the UK pop-
ulation, have purchased an item from
George in the last year.
Last week Tesco signed a franchise
deal with Fawaz Abdulaziz Al Hokair &
Co, the largest shopping mall owner in
Saudi Arabia, as part of a move to turn
its F&F clothing range into an interna-
tional fashion brand.
Asda takes
George brand
to Middle East
BY KASMIRA JEFFORD
RETAIL
RETAIL
News
CITYA.M. 26 JANUARY 2012 13
ANALYSIS l WH Smith
p
560
555
545
550
540
535
530
554
25 Jan
ANALYST VIEWS: DID WH SMITHS RESULTS
MARK AN IMPROVEMENT? Interviews by Kasmira Jefford
PHILIP DORGAN | PANMURE GORDON

Management has now successfully shifted the seasonality of the business,
but a break up looks unlikely in the short run and top line momentum is
likely to remain subdued. We think shares currently lack a catalyst.
JOHN STEVENSON | PEEL HUNT

WH Smith delivered Christmas trading in line with subdued like-for-like
expectations... Valuation and yield remain attractive, although our hold
stance continues to reflect medium-term technology fears.
DAVID JEARY | INVESTEC

WH Smith delivered another solid Christmas trading update, with a small
improvement in like-for-like sales...our 99m profit before tax forecast remains
unchanged, as does our Buy recommendation.
Kate Swann has

been chief exec of
WH Smith since
2003.
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15 EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
The Capitalist
CITYA.M. 26 JANUARY 2012
RESTAURANTS, holidays, cars and
now trading seminars. Todays deal of
the day on the internet coupon busi-
ness Groupon is a 95 per cent dis-
count to 19.95 on the trading
academy run by the irrepressible
hedge fund manager Lex van Dam.
To recap: van Dam (right) is the ex-
Goldman banker who left to set up
Hampstead Capital, before putting
up $1m of his own money to let a
group of amateurs lose two per cent
of that capital on the 2010 BBC
show Million Dollar Traders.
That was still three per cent better
than the professionals however,
says van Dam, thanks to his five-step
programme which
teaches the art of
building and
managing an
online stock
portfolio.
Places for the
internet tutori-
als are unlimited
and open to
people who are
dissatisfied with
the performance
of their financial
adviser.
Everyone, in
other words.
GROUPON LISTS MILLION
DOLLAR TRADERS DEAL
FORGET the FTSE 100 its the compa-
nies further down the stock market
that will lift the country of recession,
says Grant Thornton partner Philip
Secrett, who last night called on the
government to abolish stamp duty for
Aim- and Plus-listed firms.
Secrett was addressing a roomful
of the Citys small-cap businesses,
the fund managers that invest in
them, and one large dinosaur skele-
ton at the Grant Thornton Quoted
Company Awards at the Natural
History Museum.
Never mind Davos
this was the first
essential event of
the business year,
said organiser
Vitesse Media,
and the only
one that
r e w a r d s
high-achiev-
ing listed
companies
q u o t e d
south of
the FTSE
350 down
to Aim and
Plus.
The world
is entering a period of slower growth,
and so we desperately need to bring
capital to our small businesses,
because these are the companies gen-
erating the best returns, awards
judge Gervais Williams, the manag-
ing director of MAM Funds, told The
Capitalist between debates with pre-
senter Naga Munchetty of BBC World.
Many fund managers prefer to
focus on the large companies but
we are getting close to a turning
point where that will reverse.
Joining Williams on the top table
were fellow judges Andrew
Buchanan of Octopus
Investments, Andy Brough
of Schroders (pictured left
with Ishbel Macpherson,
chairman of Speedy Hire),
and Giles Hargreave of
H a r g r e a v e
Hale, who
a b s t a i ne d
from voting
h i m s e l f
Investor of
the Year for
his consis-
t e n t
ret ur ns
in small-
cap stocks.
Peter Barrett-Lennard of RBC Capital Markets, Tony Lowrie of
Kenmare, and Stephen Foss of RBC Capital Markets
(from left) Marcus Edwards-Jones of Range Resources, Shahrukh Khan of Oracle
Coalfields, and Harry Stevenson of Pritchard
Gervais Williams of MAM Funds, Andrew Buchanan of
Octopus, and Katie Potts of Herald Investment Trust
CITY INVESTORS TAKE
STOCK OF SMALL-CAP
SUCCESS STORIES
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1
ROCHE Holding is offering $5.7bn
(3.6bn) in cash to buy US gene
sequencing company Illumina in an
unfriendly takeover bid that marks a
major move by the Swiss drugmaker
into the gene technology field.
Gene sequencing is central to per-
sonalised medicine, which allows sci-
entists to predict a patients response
to a particular drug, both during clini-
cal practice and in drug trials.
The current offer price is 18 per cent
above Illuminas closing price on
Tuesday and over 60 per cent above the
level before rumours of a bid started,
but analysts have said Roche might
have to raise its offer to secure a deal.
Roche chief executive Severin
Schwan said the company had no
intention of raising its offer.
Basel-based Roche said it would
offer to buy Illuminas shares for
$44.50 each in cash. Roche currently
owns a very small number of Illumina
shares, finance chief Alan Hippe said.
It plans to commence a tender offer
because Illumina was not willing to
negotiate a transaction.
Roche has made multiple efforts to
engage with Illumina in order to reach
a negotiated transaction, but Illumina
has been unwilling to participate in
substantive discussions, it said.
A deal would be financed from avail-
able cash and borrowings under its
credit facilities and would not require
new finance, Roche said.
Illumina urged shareholders to take
no action pending a recommendation
from the board.
Roche offers
$5.7bn to buy
gene business
BOEING said yesterday that a pension
expense larger than Wall Street had
anticipated would weigh on its 2012
earnings, but it handed investors
good news with expectations for
increased aircraft deliveries this year.
The worlds largest aerospace and
defence company reported fourth-
quarter net profit of $1.4bn, com-
pared with $1.2bn a year earlier.
The company, which competes
with Airbus for orders, said revenue
had risen to $19.6bn and that it
expects to deliver 585 to 600 commer-
cial airplanes in 2012.
Boeing upbeat
over plane sales
Roche boss Schwan said he will not raise his offer for Illumina Picture: REUTERS
BY HARRY BANKS
PHARMA
TRANSPORT
News
ANALYSIS l Roche
CHF
167.50
165.00
162.50
160.00
160.00
25 Jan
ROCHE has turned to regular financial
advisers Greenhill and Citigroup on its
bid for Illumina, having mandated both
houses on previous M&A transactions.
Citis team on the deal includes its
global head of health care investment
banking ex-Lehman Brothers employ-
ee Chris Hite and Wilhelm Schulz, the
banks head of European M&A.
Born in Austria, Schulz completed his
MBA in the UK at Lancaster University,
and worked as a ski instructor before
climbing through the Citi ranks.
Both Schulz and Hite worked on
Roches $230m acquisition of hepatitis
C specialist Anadys Pharmaceuticals in
October last year.
Greenhills healthcare team has previ-
ously worked for Roche as the sole
financial adviser on its 2009 acquisition
of biotechnology company Genentech
for $46.9bn after a lengthy pursuit.
Illumina is being advised on the offer
by Bank of America Merrill Lynch, and
Goldman Sachs.
By Elizabeth Fournier
MEET THE ADVISERS
WILHELM
SCHULZ
CITIGROUP
ONLINE streaming service Netflix
exceeded expectations for 2011
despite its market value crashing by
more than two thirds in October as
up to a million customers left the
service in protest to hiked fees.
While fourth-quarter net income
slid 13 per cent to $41m (26.1m),
quarterly revenues were up by a third
on the previous year to $876m.
Netflix expects to see a loss of up to
$118m in the coming quarter due to
its expansion to Latin America and
the UK last year.
Netflix survives
disastrous year
TECHNOLOGY
Focus on Davos
SUSTAINABILITY IS
ABOUT MORE THAN
THE ENVIRONMENT
ANDREW MOSS
GROUP CHIEF EXECUTIVE, AVIVA
S
USTAINABILITY is a word that crops up in a lot of
the conversations going on at Davos. For many, its a
shorthand for environmentalism, but for us it has to
mean much more than that. Our relationships with
customers can last for decades running a sustainable busi-
ness is how we safeguard the financial futures of our 44m
customers.
We know that we can only provide our customers with
prosperity and peace of mind if we act responsibly, sustain-
ably and with integrity. Well-managed, responsible busi-
nesses will perform better and create more sustainable
value over the long term.
We want our employees to be able to build a rewarding
career with us. We want our customers to stay with us
and recommend us to others. We want to be a responsible
corporate citizen and make a lasting, positive contribution
to society. All these approaches build sustainability into the
heart of the business.
Later this year at the Rio+20 summit, well be leading a
coalition of financial institutions, professional bodies, NGOs
and investors in calling for agreement on a global conven-
tion on corporate sustainability reporting. The idea is to
get company boards to consider and report on the future
sustainability of the firms they govern and thus encourage
more responsible long-term approaches to investment.
However, it isnt enough just to talk to the financial com-
munity. We also have to concern ourselves with the com-
munities in which we live and work. Our international
Street to School programme aims to help children living
and working on the streets get back into some form of
education and training. We intend to help half a million
children by 2015. Our employees have dedicated over
30,000 volunteering hours to Street to School project
work. Here in the UK, where the issue of street children is
often less acknowledged, our staff are helping deliver run-
away awareness and prevention lessons to young people.
In investments, insurance, as an employer and as a com-
pany, we think long term: we try to ensure there is sustain-
ability in everything we do.
BANK chiefs will wear the scars of
the crisis for the rest of their lives,
Bank of America chief executive Brian
Moynihan said during a debate on the
future of capitalism yesterday.
Moynihan had jumped to defend
himself from the charge that the old
industries and institutions are inca-
pable of producing the necessary
changes post-crisis.
Speaking for fellow bankers, he told
an audience member: You should rest
assured that every one of our institu-
tions is so different from what we ran
a few years ago. We know that and
weve learned from that. We wear the
scars [of the crisis] still today and will
continue to wear them for the rest of
our careers. We understand that and
we are trying to move forwards.
He also said that large corporations
like BofA face a huge challenge to
avoid stagnation and to adapt suffi-
ciently. Our job is to hustle [talent],
he said. These premises that get
thrown out that large companies
dont innovate weve got to think
that through.
Also speaking was Sharan Burrow,
head of the International Trade Union
Confederation, who warned: This is
just going to get worse, not better.
Emerging economies cannot pull the
west out of this. [Its a problem] having
an austerity strategy and not a growth
strategy. Its not going to help globali-
sation.
She came under fire from Ben
Verwaayen, chief executive of French
technology firm Alcatel-Lucent (owner
of Bell Labs), who responded: When I
hear you make speeches saying We
are ready for solutions and if only the
other side will do what we want, we
will go back to what we were we
wont go back. What Id like is a little
bit of perspective from your side, from
the labour movement.
Moynihan: crisis to leave scars
BY JULIET SAMUEL
EUROZONE
THE COALITION will last out its intend-

ed term to 2015, according to Labour
peer Peter Mandelson, although he
added that it was surprising that the
right, and not the left, has benefitted
from the financial crisis.
Mandelson was speaking at a break-
fast hosted by WPP chief executive Sir
Martin Sorrell to discuss the shift in
European and American politics.
Asked if the government will survive
until 2015, he said: The public are not
in a mood to reject the coalition... The
coalition will last until they can
bear each other no longer,
which, yes, will probably be a
good four years.
But Mandelson said he was
puzzled by Europes politi-
cal shift rightwards.
[The right] are scor-
ing more points, he
said. Capitalism is on
trial, but why is the
right benefitting from
this and not the left?
This is surprising.
He also had some
advice for Labour
leader Ed Miliband, saying that
reclaiming the centre ground of pol-
itics is something Labour has to
think through.
As for European politics, he
told the assembled business
executives that they should
not expect progress to be
as fast as markets want.
Does it have to move
at the speed of a snail?
he said, versus the
nanosecond change
in markets. Yes.
Politics is like that. It
moves slowly.
BY HARRY BANKS
WORLD ECONOMY
EUROPE risks becoming little more

than an interesting holiday destina-
tion if less competitive countries do
not follow Germanys example,
Chancellor Angela Merkel told a
packed hall in Davos yesterday.
Germanys premier warned against
levelling down in order to make the
Eurozone a coherent economic group.
Do we wish coherence and consis-
tency without ambition? she
demanded, saying that the continent
risks embracing the lowest common
denominator if poorly performing
nations did not follow those role
models with high productivity like
Germany. We will certainly be an
interesting place to take a holiday in
but we will not be competitive..
During her opening address for the
World Economic Forum Merkel also
reitered Berlins view that Europe
must embrace a system of harsh sanc-
tions for countries that do not keep a
firm grip on their spending.
If we break the rules, were ready to
have others bring legal action against
us, she said.
The issue of what powers the ECJ
should have over erring nations has
been a key sticking point in negotia-
tions over the Eurozones new fiscal
compact, with Germany supporting
the most stringent legal framework.
And she appealed for patience from
financial markets for Europes slow
political negotiations: Please take the
long, drawn-out process with a certain
degree of acceptance, she said.
Berlin is also keen to keep non-
Eurozone nations at the table as a
counterweight to some less competi-
tive countries in the euro.
Merkel told delegates: We have to
be very careful this common union of
the 27 remains a union. But she
added that the euro 17 would need to
embrace their own more integrated
state: Do we dare more Europe? Were
ready to be more European, she said.
There will have to be more integra-
tion... we have to become used to the
[European] Commission becoming
more and more like a government.
Then, turning to the hundreds of
top business leaders watching, she
said: And please dont forget us when
you're thinking of investment.
Merkel: dont
dumb down
the Eurozone
@Noriel 7.05pm
Today new/social media day for me in Davos at the
WEF: meetings with Sean Parker, Randi Zuckenberg
and CEOs/founders of Scribd and Mashable
@Wef 5.35pm
Each one of us is made for goodness, even
bankers - Archbishop Desmond Tutu @TheElders
#WEF #Davos http://wef.ch/live ^ml
@DrGerardLyons 2.54pm
Panel of nobel economists couldn't agree what had
gone wrong with economics. I would say not enough
history and too much belief in models.
@MichaelHewson 10.41am
#Merkel says "absolutely convinced" Europe will
resolve crisis - doesn't say when though.
DAVOS TWEETS
BY JULIET SAMUEL
DAVOS 2012
Sustainable companies make a difference Picture: REUTERS
Mandelson surprised by political shift
to the right but says coalition will last
Focus on Davos
PRIME Minister David Cameron will
up the ante with Europe today by
demanding that Brussels impose tar-
gets to bring down the burden of EU
regulation on businesses.
Just six weeks after vetoing an EU
treaty because he could not get a sin-
gle concession from other leaders,
Cameron will make a checklist of
demands on continental govern-
ments.
Britain has been arguing for a pro-
business agenda in Europe. We need
to be bolder still, he will tell dele-
gates gathered in Davos. Heres the
checklist: a target to reduce the over-
all burden of EU regulation. A new
proportionality test to prevent need-
less barriers to trade... we cant afford
to wait any longer.
Europes lack of competitiveness
remains its Achilles Heel, he will
add.
The single market remains incom-
plete... we are still doing things to
make life even harder. In the name of
social protection, the EU has promot-
ed unnecessary measures that
impose burdens on businesses and
governments.
Cameron will use Davos platform to
lobby Brussels on burden of regulation
BY JULIET SAMUEL
REGULATION
ABOVE: Activists
against the
World Economic
Forum held a
protest with fake
dog leashes yes-
terday at the con-
ference centre
MAIN PICTURE:
German
Chancellor
Angela Merkel
opened the forum
with a note of
caution over the
Eurozones cur-
rent negotiations
over its future
Pictures:
REUTERS
WHATS ON IN DAVOS TODAY
l 7.30am: HSBCs wholesale banking
chief Samir Assaf is hosting a break-
fast on the southern silk road: a
guide to 21st century eco-
nomic growth, featuring
panellists from the
International Monetary
Fund, the Brazilian
government and WSJ.
l 10.30am: Gordon
Brown will chair a
debate with the presi-
dent of Guineau, Alpha
Cond, Nigerian presi-
dent Goodluck Jonathan
and South African presi-
dent Jacob Zuma.
l 11.30am: Prime Minister David
Cameron will address the World
Economic Forum on Europe's competi-
tiveness and the failure of the Doha free
trade talks.
l 11.55am: Mayor of London Boris
Johnson will discuss the upcoming
London Olympics in the main congress
hall.
l 12.30pm: Davos Open Forum on
responsible leadership in time of
crisis with former Israeli
Prime Minister Ehud
Barak, former UK
Prime Minister
Gordon Brown and
former ECB presi-
dent Trichet,
among others.
l 10pm:
McKinsey will host
a nightcap in the
Belvedere Hotel
until the small hours.
l 10pm: The FT and
CNBC host a joint nightcap in
the Belvedere.
l Events can be watched live online:
http://www.livestream.com/worldeco-
nomicforum
l The official Twitter feed is @Davos
#WEF.
EVENTS
In
association
with
Lord Mandelson sounded off about garlic-eating tax dodgers at Sir Martin Sorrells breakfast, as
the second day at Davos kicked off with political sniping and an amused room of top bankers.
IS Lord Mandelson missing the
limelight? The dark prince was
all over the forum like a rash yes-
terday, hot-footing it from one
engagement to another.
Before any sign of sun was
showing through the thick snow-
clouds covering Davos yesterday,
Mandy suited and booted for a
breakfast hosted by WPP chief
executive Sir Martin Sorrell.
Demonstrating the incisive
political nous for which the
investment bank Lazard no doubt
pays him a handsome advisory
fee, Mandelson offered his views
on topics ranging from the
Russian President Dmitri
Medvedev weak, hasnt really
made a mark to the reason
that German Chancellor Angela
Merkel remains popular
because she has avoided giving
excessive hand-outs to garlic-eat-
ing tax-dodgers in the south of
Europe.
But there was one topic on
which he was most reluctant to
hold forth.
Direct as ever, Sir Martin men-
tioned that some commentators
havent been so kind about
Mandys current party
leader Ed Miliband.
Have they? said the
dark prince nonchalant-
ly. Ive been travelling.
Barclays chairman
Marcus Agius doubled over
with laughter.
But HSBC chief executive
Stuart Gulliver had places to be:
he was soon trying to sneak out
via the kitchen.
DAVOS DIARY by Juliet Samuel in Davos
Lord Mandelson said Angela
Merkel had stayed firm on
garlic-eating tax dodgers in
the south of Europe.
All information is accurate at the time of going to print. Important: due to the fast moving nature of this market, all offers, prices and availability are subject to change. 1Pay monthly prices are subject to credit check and minimumtermof 24 months on selected networks and tariffs. 2Phone was 169.99 on O2 10.50 per month (24m) tariff, nowfree. 3Phone was 229.99 on Vodafone
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SHARES in the Swedish telecoms com-
pany Ericsson plummeted 15 per cent
yesterday to the lowest point since
2008 on a dismal set of fourth quar-
ter results.
Net income came in at SEK1.5bn,
just a third of last years 4.4bn Swedish
krona (400m) and shocking analysts
who were expecting to see net income
nearer the SEK4.2bn mark.
Ericsson put this down to lower
sales volumes in networks, particular-
ly across North America where sales
declined 20 per cent, and losses relat-
ed to the Sony Ericsson partnership, in
which sales fell 20 per cent.
Ericsson agreed to sell its share in
the partnership in October to Sony for
1.05bn. The deal is set to close this
year.
Ericsson reported net cash of
SEK39.5bn, in a 10 per cent rise on last
quarters balance, but a 27 per cent
drop on the end of 2010.
Ericsson named modernisation as a
cause of its decline, due to both a drop
in sales as wireless operators concen-
trate on building fourth generation
networks and the money spent on
rolling out new Ericsson equipment
across Europe.
Motorola Solutions, the telecoms
equipment provider launched when
Motorola Inc divided its operations
last year, showed better results. Yearly
profits jumped to $1.16bn (740m)
from $633m, with the years revenue
up seven per cent to $8.2bn despite a
37 per cent drop in fourth quarter
profits.
Ericsson sees
share price
drop by 15pc
THE SOLAR power industry has
received a boost in the courts, after
judges upheld a decision blocking the
governments attempts to cut solar
subsidies.
The Court of Appeal case involved
the governments move to halve the
payments made to households with
solar panels. Under the programme
the households are paid for the elec-
tricity they generate.
The government which says it can-
not afford to sustain the scheme has
indicated that it will now take the case
to the Supreme Court.
Climate change secretary Chris
Huhne said after yesterdays high
court decision, which upheld the view
that the governments plans were
legally flawed: We want to maximize
the number of installations that are
possible within the available budget
rather than use available money to pay
a higher tariff to half the number of
installations.
Employers group the CBI urged the
government to abandon its legal battle
over its plans.
The judgement should be used to
draw a line under this saga, which saw
the government scoring a spectacular
own goal and confidence in the renew-
ables sector undermined, said direc-
tor general John Cridland.
Government
loses its solar
panel appeal
BY LAUREN DAVIDSON
TELECOMS
ENERGY
News
ANALYSIS l Telefon AB L M Ericsson
SEK
70
68
64
66
62
60
58.85
25 Jan
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l PhosAgro OAO
12
11
10
9
Nov Dec Jan
$
9.32
25 Jan
PHOSAGRO
UBS has upgraded the London GDR listing
of the Russian fertiliser group from sell to
neutral after a sell-off over the past cou-
ple of months that has seen the stock lose
nearly 30 per cent. The broker sees no rea-
son to change its 2012 estimates or price
target of $9, despite a weak market outlook
and unclear demand implying some down-
side risk.
ANALYSIS l Randgold Resources
7,400
7,200
7,000
6,800
6,600
6,400
Nov Dec Jan
p 6,825
25 Jan
RANDGOLD RESOURCES
Investec has reduced its recommendation on
the gold mining business from buy to hold
ahead of results on 6 February. The broker
has reviewed its production forecasts and
earnings to incorporate recent changes to its
gold price assumptions, considerably lower-
ing estimates for 2012 and 2013. Investec
has also lowered its target price from 7,332p
to 7,303p.
ANALYSIS l Synergy Health
900
880
860
840
820
810
Nov Dec Jan
p 866
25 Jan
SYNERGY HEALTH
Brewin Dolphin has downgraded the health-
care equipment and services provider from
add to hold as the shares move closer to
its target price of 943p ahead of third-quar-
ter results in February. The broker expects
second-half sales growth of 13 per cent, and
remains positive on Synergy in the mid-term
given the structural and international growth
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ENGINEER Weir Group yesterday
announced that it had bought Dallas
pump maker Novatech for 113m.
The FTSE 100-listed company said
the deal would give it a stronger
foothold in the lucrative US oil and
gas market.
Last November, Glasgow-based
Weir acquired Texas-based Seaboard
Holdings for 430m.
Novatech specialises in pumps
which can work at high pressures
and is already a supplier to Weir.
Weir chief executive Keith
Cochrane said: This strengthens
further Weirs presence in the North
American unconventional oil
and gas markets and builds a larger
upstream product range to offer
the developing international
shale markets.
Shares in Weir closed up
almost two per cent yesterday at
19.64.
BY JOHN DUNNE
ENGINEERING
BRITISH engineers Renishaw said yes-

terday it enjoyed revenue growth of 11
per cent during the half of 2011 com-
pared with last year.
The company said its total revenue
of 147m for the period is a half-year
record.
Renishaw also said it is expecting
recovery in the electronics sector,
while global investment in production
systems in automotive, civil aviation,
agriculture and energy looks increas-
ingly favourable.
However, the company saw interim
pre-tax profits drop from 35m in 2010
to 31m in 2011. Renishaw attributed
the drop in profitability was due to sig-
nificant investments in staff and infra-
structure to support growth.
The company has maintained its
interim dividend payment at 10.3p per
share.
Renishaw sees record revenues
but suffers a dent to earnings
ENGINEERING
News
CONOCOPHILLIPS TO PAY 100M FOR SPILL
US OIL company ConocoPhillips yesterday agreed to pay one billion yuan (101m) in
compensation for damages caused by a huge oil spill in the north east of China. The leak
last June from an offshore field released more than 3,000 barrels of oil and lubricant off
the coast, sparking anger among local people. Picture: REX
NEWS | IN BRIEF
Forth Ports takes over London site
Forth Ports has taken full ownership of a
container terminal in London, it
announced yesterday. The firm bought up
the remainder of Tilbury Container
Services, which is on the River Thames
about 30 miles from central London, from
the other co-owners. The centre handled
314,000 containers last year. DP World
said it sold its 34 per cent stake to Forth
for 48.45m, while Associated British
Ports offloaded its 32.7 per cent holding
for 46.55m, the firms said in a state-
ment. Charles Hammond, chief executive
of Forth Ports, said the deal is a major
step forward in our plans to grow and
develop our ports business. He said the
firm plans to combine its existing Short
Sea terminal with Tilbury to create one of
the UKs biggest container operations.
Heritage in Tanzania expansion
Oil exploration and production firm
Heritage Oil has been awarded further
acreage in Tanzania through the Kyela
production and sharing agreement
(PSA). The Kyela PSA has an area of
1,934 square kilometres but has never
been previously targeted for hydrocar-
bon exploration. However, Heritage said
gravity data over the area suggests the
presence of a sedimentary section of suf-
ficient thickness to allow for the genera-
tion of oil.
Kenmare sees revenue soar
Irish mining company Kenmare
Resources yesterday reported robust
demand for its products in 2011, with
revenues up 83 per cent year-on-year.
Revenue rose from $91.6m in 2010 to
$167.5m in 2011. Quarter-on-quarter, the
volume of finished products shipped in
the fourth quarter rose from 188,200
tonnes to 192,400, while production of
Ilmenite and zircon was up 13 per cent
and 12 per cent respectively.
Jupiter upbeat after new oil find
Kazakhstan-focused oil explorer Jupiter
Energy said its latest exploration well
struck oil, raising hopes that the compa-
ny's oil field is substantial enough to
enable it to soon start exporting oil from
the Central Asian country. Jupiter, which
is listed in both Britain and Australia, said
yesterday that its fourth well near Aktau,
in-land from the Caspian Sea, found a 56
metre zone of oil which could be pro-
duced. The company is aiming to export
oil from Kazakhstan by the end of 2013.
Weir buys US
pump firm in
113m deal
ANALYSIS l Weir Group
p
2150
2100
2050
2000
1950
1000
1,964
25 Jan
News
B
RITAINS top shares closed
lower yesterday as banks fell
out of favour after brokers
urged caution on the sector
after recent gains, while poor growth
in the UK highlighted the challenges
facing corporates to meet earnings
expectations.
Londons blue chip index closed
down 28.90 points, or 0.5 per cent at
5,723.00, as the FTSE 100 retreated
from six-month highs hit on Monday,
but held above 5,700 - the level it had
struggled to close above since last
August.
Banks were the main fallers, hav-
ing risen around 15 per cent early in
2012, compared with about a three
per cent gain on the UKs benchmark
index, as analysts at UBS and
Macquarie cast doubt over the sus-
tainability of the recent rally.
Royal Bank of Scotland shed 1.1 per
cent as UBS cut its rating on the
majority state-owned lender to neu-
tral from buy.
Macquarie also downgraded its rec-
ommendation on RBS in a broader
note on banks.
Peers Lloyds Banking Group and
Barclays fell 2.3 and 0.5 per cent as
Macquarie compared the current
European crisis with that in Japan in
the 1990s and concluded the recent
rally is an opportunity to take profits.
Worries over their outlook hit inte-
grated oils, as JP Morgan said the sec-
tor was set for some weak earnings in
its fourth-quarter results preview.
Royal Dutch Shell and BP shed 1.6
and 0.6 per cent respectively, as
JPMorgan cut its 2012/13 earnings
estimates for both firms by up to 10
percent.
Banks and oil firms
weigh on the FTSE
THELONDON
REPORT
p
18Nov 31 Oct 8Dec 30Dec 20Jan
5,800
5,200
5,300
5,400
5,100
5,600
5,700
5,500
ANALYSIS l FTSE 5,723.00
25 Jan
B
IG profits from Apple and a
promise from the Federal
Reserve to keep rock-bottom
rates for at least two more years
powered the US stock market higher
yesterrday.
Apple led the Nasdaq to a one per
cent gain. Shares of the maker of
iPhones and iPads surged to a record,
making it the most valuable US com-
pany in terms of market capitalisa-
tion. Apple finished up 6.2 per cent at
$446.66.
Buying picked up after the Federal
Reserve said it would keep interest
rates near zero through at least 2014,
which was longer than many
investors anticipated.
Apple shares hit an all-time high of
$454.45 on results issued after
Tuesdays market close that sailed
past expectations. The move higher
pushed Apples market capitalisation
above that of Exxon Mobil, making it
the largest publicly held US company.
The Dow Jones industrial average
rose 83.10 points, or 0.66 per cent, at
12,758.85. The Standard & Poor's 500
Index was up 11.41 points, or 0.87 per
cent, at 1,326.06. The Nasdaq
Composite Index ended up 31.67
points, or 1.14 per cent, at 2,818.31.
Both United Technologies and
Rockwell Automation slightly missed
revenue forecasts. United Tech closed
down 0.2 per cent at $77.65 and Rock-
well dropped 2.9 per cent to $79.42.
Nasdaq takes a bite
of the prized Apple
THENEW YORK
REPORT
Mercer
The HR consultancy has appointed Paul
Macro as head of defined contribution.
Macro joins from Towers Watson,
where he was a senior consultant.
Mercer has also hired John Benfield, for-
merly a senior investment consultant at
Aon Hewitt, as a partner in its invest-
ment business.
Arbuthnot
James Fleming has been appointed as
chief executive of the private bank and
joins the board. Fleming has over 25
years of private banking experience, ini-
tially at SG Hambros and then at Coutts
& Co, where he rose to managing direc-
tor of the UK entrepreneurs, landowners
and inpatriates client groups.
City of London
City of London Investment Group has
appointed Lynn Ruddick as a non-
executive director, as George Robb
retires from the role. Ruddick is non-
executive chairman of Fidelity Special
Values and British Assets Trust, and
non-executive director and chairman
of the audit committee of Standard
Life UK smaller companies trust.
Roland Berger
The strategy consultancy has hired
Paul Jowett as managing partner of
the firms London office. Jowett
joined Roland Bergers corporate
finance team in Germany in 2010,
after spending 21 years in various
leading roles at German consulting
firms.
Grant Thornton
Alan Dale has been appointed as a
partner and head of Grant Thorntons
operational deal services team, and
the firm has promoted Hemal Shah to
corporate finance director in the
transaction advisory services team.
Dale previously spent nine years at
PwC and 12 years at Rolls Royce, and
Shah specialises in financial due dili-
gence.
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
Smith & Williamson
Laurence Bard has been appointed as a part-
ner in Smith & Williamsons accountancy and
investment management groups corporate tax
team, based in London. He started his career at
a Big Four accountancy firm, where he spent
15 years as a tax adviser. He then spent four
years as an independent, working for many of
the same clients, before joining Shaws in 2005.
Business Features| Careers
23
T
HERES no doubt these are
tough economic times, par-
ticularly for graduates and
young people vying for lim-
ited roles in an increasingly com-
petitive job market.
The resounding sentiment
among young people is a fear
that they are not entirely pre-
pared for the work. Having prac-
tical and personal skills that are
useful in the workplace is just as
valuable as being flexible and
ambitious.
We are fortunate enough to
work with some of the best
employers in the UK, who all
tend to give us the same feedback
when looking at employing
young people. They tell us that
they see too many people who
lack many of the basics such as IT
skills, an understanding of finan-
cial procedures and even stan-
dard office protocols. Companies
are having to go into schools to
talk to potential young talent at
an early age.
There is no longer the rigid
degree-only criteria that used
to apply across the board.
Companies are using a range of
innovative ways to attract young
talent, mindful that the type of
candidates they are now after
may not necessarily use tradi-
tional means of job hunting.
That means using things such
as social media to attract talent,
rather than relying only on the
traditional advertising, offering
more flexible working schedules
including working from home
occasionally and even access to
Facebook on office machines.
Rather than just looking at the
quality of a degree, large City
companies are now looking for
more personal skills. They want
to see evidence that a young per-
son is self-aware, has the ability
to take responsibility, is consis-
tent and capable of taking initia-
tive and willing to be adaptable.
Working in the City can be the
first time a lot of young people
are in an environment where
things are not handed to them
on a plate and the ability to take
feedback without getting a chip
on their shoulder is also a key
asset that companies now seek
through their selection tests.
We see so many graduates that
dont know many of the basic
business skills and need to be
nurtured so they are fully pre-
pared for the business environ-
ment. There are a number of
options available to young people
and graduates looking to make
themselves more appealing to
employers and land that dream
job. Completing a short business
course or on an internship to
build some experience into their
CV is the most important first
step that employers look for.
Courses that are specifically
tailored to suit a young persons
needs not only ensure that they
approach employers with all the
necessary skills but also shows
the employer that they are able to
offer immediate value to an organisa-
tion.
Companies are increasingly also
looking to see that even the youngest
of recruits have already gained some
work experience. There is no substi-
tute for real experience and it also
gives them a chance to impress poten-
tial future employers.
With employers and employees both
becoming increasingly demanding,
job hunting is becoming even more
challenging, but the opportunities for
a more productive workforce can only
benefit from the increased focus on
personal, as well as professional tal-
ents.
Carlie Santoro is recruitment manager at
Quest Professional.
W
HEN Cass Business School,
regarded by the City as its
very own business school,
recently asked me to
become the first ever honorary visit-
ing professor of networking, they
were recognising a significant shift in
business thinking which brings net-
working out of its silo as a take-it-or-
leave it soft skill, and into the realm
of something with a harder edge: net-
working matters because it adds to
the bottom line.
This may seem strange, given that
networking has lightweight connota-
tions and it remains overly associated
with standing isolated at a cocktail
party or conference, waiting to do the
only thing you know how to do,
namely to hand over your business
card. But while much of networking
has at its focus not social networking
but intelligent face-to-face contact,
ideally curated so people do not feel
left to their own devices, it is about
much more than this too.
Cass is of course a learning institu-
tion and this is appropriate because
the best networking is about the
gathering of, and exchange of knowl-
edge. As every business and its
employees and customers face a
tsunami of information they face
twin challenges: what to engage with
and what to tune out. This challenge
is central to embracing the new net-
working.
Others are getting in on the act too.
In October I went to Boston to advise
Harvard Business Review executives
about the world of face-to-face net-
working. Less than three months
later they launched their first online
networking toolkit, Developing Your
Professional Networks, saying that
real networking is critical to busi-
ness success.
Furthermore, a book published
recently by the respected American
networking specialist Ivan Misner
looking at the differences in the way
men and women network provoca-
tively titled Business Networking and
Sex: Not what you think cites the
results of a three year survey of 12,000
business people in America, over 91
per cent of whom believe that net-
working is integral to winning busi-
ness. Other survey data in the book
confirm what most of you probably
already know, that most business or
jobs comes from direct refer-
ral, either from a recruiter,
or a personal connection.
To be clear, I have a vested
interest in saying this. I run a
corporate networking busi-
ness for global clients
investing in their peo-
ples networking
skills in a way
which would
have been
unheard of as
little as five
years ago. But
in this climate
there is only
one reason why
a business like
mine is growing:
it works.
As the American
theorist Steven Johnson wrote in the
bestseller Where Good Ideas Come
from: A good idea is a network... a
new idea is a network of cells explor-
ing adjacent possibilities.
Business has always been about
knowing the art of the possible.
Giving or getting networking skills
will get you further, faster. And in
this climate, that
has to be priceless.
Julia Hobsbawm
runs the corporate
networking company
E d i t o r i a l
Intelligence.
Why networking gives you the edge
Business courses and internships will
help to prove you can do the basics
CARLIE SANTORO
QUEST PROFESSIONAL
JULIA HOBSBAWM
EDITORIAL INTELLIGENCE
Its not about handing out business
cards, or even social media, but an
ability to build effective relationships
FarLLIme, blended learnIn
In CenLral London
- Develop your own leadership method
- Manage complex problems effectively
- Create an entrepreneurial culture
GET YOUR IDEAS MOVING
CONTACT US
reenLs.ac.uk
+44 (0)20 7487 7S0S
exrelreenLs.ac.uk
TLIs award Is currenLly valIdaLed by TLe 0pen UnIversILy
Too many young people lack skills for work
Its never too early
to build up some IT
knowledge
Picture: GETTY
IMAGES
24
While innovation comes rapidly in the IT industry, basic server
architectures havent changed for decades. Thats why Cisco
introduced the Cisco Unifed Computing Systemwhich integrates
compute, networking, storage access and virtualization. IT
departments dramatically reduce data center complexity while:
Lowor|nq oporat|nq costs by up to 3C%.
Poduc|nq dop|oymont t|mos rom woo|s to m|nutos.
Harnoss|nq t|o powor o ovor 3C wor|drocord
performance benchmarks.
The Cisco Unifed Computing System signals the next evolution of
the data centerwhere everything, and everyone, works together like
never before.
Find out more at www.cisco.co.uk/ucs
were not just
making servers.
were making
server history.
Big industry
responses are
needed to big
data explosion
As storage and reporting needs grow at a
rapid rate, businesses must be able to keep
up with developments, writes Craig Drake
Business Features| Technology & Finance
B
IG data has been the big tech
issue of the last year and this
trend is set to continue as vol-
umes of transactional data
continue to grow.
So what do people mean by big
data? The definition is largely subjec-
tive and refers to datasets of a size
that is beyond the ability of typical
database tools to capture, archive,
and manage. Sources can include
human and machine generated
unstructured data such as logfiles,
semi-structured such as documents
and structured relational data.
Rather than being defined in terms
of greater than x terabytes, as stor-
age and the capacity of database
tools increases, so will the definition
of what constitutes big data.
Information is now growing at a
faster rate than our electronic sys-
tems improve (Moores Law states
that that the number of transistors
that can be placed inexpensively on
an integrated circuit can be expected
to double approximately every two
years). According to IDC estimates,
the average enterprise will need to
manage 50 times more information
by 2020 while increasing IT staff by
only 1.5 per cent a challenge that
businesses will have to respond to in
an efficient manner.
BIG DATA AND FINANCE
In the financial sector, the stipula-
tions of ever mounting layers of reg-
ulation such as the Markets in
Financial Instruments Directive
review (Mifid II) as well as
increased volumes of data are driv-
ing the requirements for exponen-
tially increasing data storage and
analysis. On some days in 2011, data
volumes were almost double that of
the previous day, says Simon
Garland, chief strategist at Kx
Solutions. In addition, events such
as the flash crash have brought wild,
short-term increases in data volumes
to the forefront of concerns, while
problems in the Eurozone have
resulted in market instability and
therefore increased volatility.
ABOVE AND BEYOND
Beyond simply achieving regulatory
compliance for transactional report-
ing and best execution, companies
should also be focusing on making
big data analytics work for their
business. Through data intelligence
mining and analytics, behavioural
modeling and inference-based deci-
sions, big data can be used to provide
a competitive advantage.
In the finance sector, financial risk
modeling, near real-time financial
analysis and cyber security and
threat analysis can all be given the
edge with the aid of big data sets
and powerful analytics. With big
data, none of it can be discarded,
says Garland. All of it must be
analysed, tick by tick. The institution
that does that will spot market
opportunities which someone just
working with aggregated data could
miss.
BIG DATA IS A GIANT
OPPORTUNITY IF YOU
PLAN FOR ITS NEEDS
TIM SKINNER
DIRECTOR UK ENTERPRISE
CISCO
WHAT DOES THE INDUSTRY MEAN BY BIG DATA?
Big data refers to data sets that are too large to economically
manage and analyse with traditional IT techniques in a rea-
sonable timeframe. Big data is typically in the tens to hun-
dreds of terabytes range, or even much larger. Sources include
both human and machine-generated unstructured and struc-
tured data. Big data is most frequently associated with large,
distributed, internet-based solutions as used by Yahoo, Google
and Facebook. However, the term also typically covers newer
commercial applications such as using Twitter feeds for cor-
porate sentiment to judge the risk of financial investments.
WHAT ARE THE OPPORTUNITIES HERE?
By 2013, 15 per cent of business intelligence (BI) deployments
will combine BI, collaboration and social software into deci-
sion-making environments. Additionally, 33 per cent of BI
functionality will be consumed via handheld devices, enabling
more accurate decisions to be made faster. According to
Gartner, data warehousing and business intelligence ranks in
the top five of chief information officers priorities, identifying
the opportunity to create new revenue streams by offering
new client services while lowering business risk.
WHAT ARE THE KEY CONSIDERATIONS FOR
COMPANIES LOOKING TO CAPITALISE ON THIS
PHENOMENON?
It is important to establish an architectural, scalable
approach; big data is not simply a bigger traditional data
warehouse. There are some differences, and recognising what
is required for both server and network solutions is key to a
successful deployment. By 2014, 30 per cent of analytic appli-
cations will use in-memory functions to add scale and compu-
tational speed. Ensure the solution truly meets the business
requirements of the organisation, and avoid technological cul
de sacs.
Big data is not simply a way to store and serve a lot of data.
A large file store is one thing, but big data implies analysis
or at least manipulation of the data set.
Every two days we create
as much information as we
did from the dawn of
civilisation up until 2003
Eric Schmidt, former
Google chief executive
25
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Taking a look at whats around
the corner for big data in 2012
W
HEN it comes to planning
your responses to increas-
ing data needs, it is not
enough to simply try and
respond to regulatory requirements
as and when they pop up to do so
leaves you with a disjointed and inef-
ficient system. Instead, businesses
must plan ahead and anticipate
what might be coming around the
corner, as well as future proofing
their systems so that they are always
in a position to implement new tech-
nology that can help them to get an
advantage over competitors.
The good thing about regulation
is that it is fairly easy to plan for. One
of the great ironies of the Mifid
review is that it has been largely
driven by EU officials with a fear of
the fast march of technology but yet
has taken years to implement. As
such, it is not an insurmountable
task to respond to its requirements.
The more difficult task is to
respond to market events to be able
to handle the surges that create the
huge data volumes 0.5 per cent of
the time, but not be left with a lot of
idle capacity for the other 99.5 per
cent. But as Simon Garland, chief
strategist at Kx Solutions points out,
if you have the capacity to trade dur-
ing a flash crash, you will have the
budget to buy all the hardware you
need.
Here are Simons predictions for
big data in 2012:
1. Expect the unexpected.
2. An accelerating trend for having
small, expert in-house trading/trade
support teams rather than outsourc-
ing.
3. Risk management will make it
increasingly important to have a
(near real-time) view across all asset
classes and all geographical locations
rather than looking at silos.
4. As greater data volumes and
volatility push hardware and soft-
ware systems to their limits, the need
to monitor and manage systems
dynamically becomes more impor-
tant.
5. More data and more volatility.
Data volumes are
increasing
exponentially
Picture: GETTY
Businesses need
to take a peek at
whats coming
Picture: GETTY
40 %
projected growth in global
data generated per year
versus 5 per cent growth in
global IT spending
250bn
potential annual value to
Europes public sector
administration more than
the GDP of Greece
235
terabytes of data collected
by the US Library of
Congress in April 2011
600bn
potential annual consumer
surplus from using personal
location data globally
$300bn
potential annual value to US
health care more than
double the total annual
Spanish health care spend
30bn
pieces of data shared on
Facebook every month
Source: McKinsey Global Institute
BIG DATA BY NUMBERS
I
T REALLY is time public sector unions
stopped taking the lazy option. And
those representing the medical profes-
sion, above all, should be showing the
rest of their comrades leadership for deci-
sions made over the nations healthcare are a
matter of life and death.
Yet the doctors union is threatening to
strike over the current pensions offer, while
the nurses and midwives unions are both
opposing the coalitions NHS reforms. It is
time to face facts. In the name of patient care
and professional integrity, unions are a mil-
lion miles from where they should be on
both these issues.
On pensions, the status quo is not viable.
These pensions are underfunded to a stagger-
ing extent. Doctors pay in only 8.5 per cent of
their salary, while the cost to the taxpayer of
the employers contribution is equivalent to
more than 40 per cent. Even under the gov-
ernments current plans, doctors contribu-
tions will only rise to 14.5 per cent.
Someone has to pay for these pensions. It
seems unions still havent woken up to the
fact that the government has no money of its
own. It is the private sector that will end up
footing the bill for the shortfall in the pen-
sions of these already very handsomely-paid
doctors. More important still, the degree of
underfunding is such that future generations
of the private sector will also have to help pay
off these obligations. At a time when private
sector workers are facing tougher pension
conditions, they are effectively being hit
twice.
On NHS reforms the situation is just as
bad. The current NHS structure is simply not
delivering. International comparisons reveal
that medical outcomes are dreadful, despite
spending rises and the exemption of the
health budget from the cuts. Structural
reform is long overdue.
We now spend over 8 per cent of GDP on
health. It is the second-largest area of expen-
diture for the government after welfare. Yet
in the developed worlds league tables we
fare appallingly. One study by the Taxpayers
Alliance estimates that compared to other
European countries an extra 12,000 deaths
occur a year in the UK due to inferior health-
care. We have poor cancer survival rates and
comparatively high deaths from circulatory
disease. Data from overseas suggest that
either European-style, insurance-based fund-
ing or, better still, a savings account system
as in Singapore would produce better health
outcomes at a lower cost.
In the face of these statistics, change is
both inevitable and essential: we have a sys-
tem we cannot afford and that doesnt work.
Across the health service, we have lost sight
of the people it is meant to be there for the
patients. Quality has declined and it is time
we found ways of bringing in more accounta-
bility and putting the people it is there to
serve back at the heart of its mission. This
means structural reform, and on a much
more radical level than the coalition is talk-
ing about.
Changing how the NHS is funded can be
only part of this. The way the medical profes-
sion works must also be modernised. Central
pay bargaining and the negotiation of pen-
sion arrangements at a centralised level is
not conducive to creating a workforce that
cares or performs to the best of its abilities.
There should be much more differentiated
pay across the sector and regions.
We also need to consider ways to deregu-
late healthcare to improve competition. At
the moment the centralised nature of the sys-
tem means that only 17 per cent of health-
care funding in the UK is private. There are
all kinds of restrictive practices, for instance
the systems by which doctors are licensed,
that make it hard for private providers to
compete fairly. The nature of the current sys-
tem also creates ill-feeling towards the pri-
vate sector, as there is not enough
competition to drive down private prices.
In the face of these great national issues,
medical unions are refusing to engage. They
should be the very ones leading the charge
for constructive reform on all these issues,
preserving the future of their profession and
improving the quality of its work. They
should be proposing a sensible and reason-
able model for reform to the structure of the
NHS, as well as to pay. Yet where is an alterna-
tive from unions that will deliver for
patients? Where is their comparative study of
insurance models across Europe or of the
impact of health savings accounts?
Unions must grasp the reality of the crisis
we face. Innovative thinking in healthcare is
in the interests of both patients and medical
professionals. What a tragedy then, that it is
unimaginable for Britains doctors to be in
the vanguard of improving our broken sys-
tem.
Ruth Porter works for the Institute of Economic
Affairs (iea).
26
The Forum
Compared to Europe, bad
healthcare causes 12,000
extra UK deaths a year.
Britains healthcare system
is on the critical list why
are medical unions in denial?
cityam.com/forum
RUTH PORTER
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.
27
Proposals to alter
the rules in Eire
could put a stop
to legal tourism
The music stops
for UK breaks
on bankruptcies
T
HE singer Kenny Rogers once sang
youve got to know when to hold em,
know when to fold em, know when to
walk away, know when to run. While
Rogers was singing about a gambler, he could
just as easily have been singing about the Irish
peoples attitude to their bankruptcy regime.
Increasingly the people of Ireland have been
folding and running for the shelter of the
more relaxed rules in the UK.
This has spawned a bankruptcy tourism
industry and there are now a host of compa-
nies set up on both sides of the Irish Sea to
advise Irish people on the intricacies of declar-
ing bankruptcy in the UK. The industry owes
its birth to the current period of bankruptcy in
Ireland, which is 12 years, during which time
you cannot act as a director of a company, oper-
ate a bank account or obtain credit over 635
without declaring your bankruptcy status. In
contrast, the UK period is 12 months.
However, yesterday the Irish justice and
finance ministers unveiled a new Personal
Insolvency Bill which will allow debtors to
emerge from bankruptcy after three years
rather than the current 12. There will be much
discussion on the proposed legislation within
the Irish national parliament, and it may be
many months before the bill becomes law.
Central to a foreign national presenting a
bankruptcy petition in the UK is the establish-
ment of a centre of main interests (COMI). It is
generally sufficient for you to be conducting
business and or living in the jurisdiction.
Examples of how a person can establish their
COMI in the UK are: taking up employment,
having a national insurance number, opening
a bank account and having a tenancy agree-
ment. Obviously this list is not exhaustive but
is indicative of how a COMI can be created.
Bankruptcy tourism has been much dis-
cussed in the Irish press during the Irish reces-
sion and returned to the front pages last week
with the bankruptcy of Irelands former rich-
est man, Sean Quinn. Quinn, who as recently
as 2008 had a net worth of 3.73bn according
to the Sunday Times Rich List, was declared
bankrupt at the High Court in Dublin.
Quinn had previously been declared bank-
rupt in November 2011 in Northern Ireland
but this was subsequently challenged by a
creditor, Irish Bank Resolution Corporation,
who claimed his COMI was in the Republic of
Ireland. Quinn vehemently denied this, stating
Im 65 years of age and Ive never worked a
day of my life outside Northern Ireland.
Unfortunately for Quinn, on 10 January
Justice Donnell Deeny in the High Court in
Belfast found his centre of main interests to be
in the Republic. Among other factors, Quinn
had his home and offices in County Cavan and
his advisers offices in Dublin. Deeny annulled
the Northern Irish bankruptcy order, leaving
Quinn open to proceedings in the Republic
which were swiftly issued.
This case may prove to be an anomaly, but it
will be interesting to see how future bankrupt-
cy proceedings deal with jurisdictional issues.
These issues together with the new Personal
Insolvency Bill could see a slow down in the
bankruptcy tourism trade. It remains to be
seen whether prospective Irish bankrupts will
continue to flee to the UK or stay at home to
face the music, Kenny Rogers or otherwise.
David Russell is a specialist in insolvency for
Bracewell Law.
Reduce naked risk
Jamie Whytes proposal for
amending bankers pay structure
[Strippers can show us bankers
just rewards, yesterday] is certain-
ly worth consideration but needs
further refinement. In Whytes
model the bank is still subject to
losing large amounts of capital at
the hands of its trader, whereas
Stringfellow faces no such capital
risk with his lap dancers.
A trader winning the auction can
lose the bank millions and the
higher the winning bid, the higher
the risk of the trader taking a big
losing bet the risk/reward is still
very asymmetric. The way to avoid
this problem would be to control
the traders bet by putting in place
a stop-loss limit equivalent to the
traders winning bid in the first
trade.
If he makes a bad first trade, he is
blown out, but the bank only loses
the amount it gained in the auc-
tion. If the trade is successful then,
say, 15 per cent of the profit would
be added to the traders pot,
together with the auction amount,
and his subsequent trade could be
protected by a stop-loss equivalent
to the size of the pot. This could be
repeated for further trades with
the contents of the pot determin-
ing the stop-loss limit on any trade.
In this way, the banks capital is
protected in the event of a losing
trade and an adequate return is
made by the bank on the capital at
risk in any winning trade.
Zafar Khan
investment analyst
RAPID RESPONSES
DAVID RUSSELL
The Forum
T
HIS bar stool
observation from a
stranger on
Monday evening
may well have nailed it.
Id like to see Mitt
Romney as my president,
but Id love to see Newt
Gingrich debate Barack
Obama. Gingrich has something the Republican base
values combativeness, as well as a veneer of near-
invincibility on the stage before a live TV audience.
Three bouts against Obama would be great theatre. Or
so the theory goes.
But is this veneer merely a facade? On Monday,
Romney rattled Gingrich over his ethics charges,
reminding the audience that it wasnt partisan
Democrats who forced him to resign the speakership
in disgrace, but his fellow Republicans. He then pressed
Gingrich about his history as an influence peddler in
Washington. Gingrich didnt just appear thin-skinned
he was translucent. He responded that he didnt want
to debate Romneys accusations. Of course. If the
American people wanted to see the facts, he stated,
they should check out his website. They wont.
Gingrichs campaign blamed the debate format for
his lacklustre performance; audience members in
Tampa were asked politely not to applaud. The format
even led the former speaker to threaten a boycott of
future debates, which have thus far been the oxygen
that have fuelled his spectacular comebacks. But
Gingrich is a stump speaker, not a debater. He thrives
off applause lines, not one-to-one combat. Tonights
debate in Jacksonville will be more to his liking, but if
he requires a rowdy audience, how will he fare against
Obama? Its custom for debate moderators to ask for
silence during the presidential debates.
Romneys attacks against Gingrich are not new, but
they may still have legs. Voters actually know signifi-
cantly less about the candidates than one would
expect. But Romney knows that counting on a polling
implosion for Gingrich is no sure thing. Romney is still
recovering from last weeks failure to release his tax
returns, a moment of indecisiveness that created the
impression he had something to hide. Having now
released them, overcoming this trust deficit is now all
the more challenging. In two years Romney has paid
around 14 percent in capital gains taxes on earnings of
$42.6m. Its legal, and the figure undercounts his true
tax contribution, but voters will ask is it fair?
Florida is crucial because it awards all 50 of its dele-
gates to the winner. But much to the chagrin of the
candidates, endorsements from Floridas statewide
Republican leaders appear not to be forthcoming.
Governor Rick Scott will not endorse, which may not
matter. Scott has state-wide approval ratings in the
low thirties and only half of Republicans believe hes
doing a good job. Rumours of former governor Jeb
Bush endorsing Romney were unfounded and senator
Marco Rubio, the Republicans most popular official,
has also pledged to stay out. Romneys campaign did
get the next best thing Rubio publicly defended
Romney following a Gingrich attack.
The main lesson from last week is that momentum
can carry you towards the finishing line, but it can also
force you to stumble. Like Romney in South Carolina,
Gingrich will find that poll leads are worth little if you
fail to respond appropriately to reasonable questions.
Unemployment and housing foreclosures in Florida are
fourth and second highest in the country respectively.
Some Floridians are looking for miracles. The least
Gingrich can do is provide credible answers.
Ewan Watt is a Washington, DC-based consultant.
You can follow him on @ewancwatt
There isnt any debate:
Voters want openness
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
US ELECTIONS
BY EWAN WATT
LON GD ONCE FIX AM...........1659.00 -10.00
SILVER LDN FIX AM ..................32.06 -0.18
MAPLE LEAF 1 OZ ....................35.83 1.11
LON PLATINUM AM................1550.00 0.00
LON PALLADIUM AM...............677.00 -2.00
ALUMINIUM CASH .................2190.00 -3.00
COPPER CASH ......................8266.50 -65.50
LEAD CASH...........................2215.50 38.50
NICKEL CASH......................20290.00 -325.00
TIN CASH.............................21855.00 -75.00
ZINC CASH ............................2052.00 37.00
BRENT SPOT INDEX................110.60 -0.05
SOYA .....................................1220.00 2.50
COCOA..................................2413.00 144.00
COFFEE...................................220.45 1.00
KRUG.....................................1718.10 -11.20
WHEAT ....................................163.62 -0.88
AIR LIQUIDE........................................95.65 -2.21 100.65 80.90
ALLIANZ..............................................84.90 0.03 108.85 56.16
ANHEUS-BUSCH INBEV ....................47.20 0.30 48.63 33.85
ARCELORMITTAL...............................16.11 -0.29 28.55 10.47
AXA......................................................11.94 0.00 16.16 7.88
BANCO SANTANDER...........................6.02 0.04 9.00 4.94
BASF SE..............................................59.25 0.53 70.22 42.19
BAYER.................................................52.66 -0.60 59.44 35.36
BBVA......................................................6.80 -0.03 9.17 4.94
BMW ....................................................63.59 0.09 73.85 43.49
BNP PARIBAS.....................................35.79 0.40 59.93 22.72
CARREFOUR ......................................16.89 -0.03 31.98 14.66
CRH PLC .............................................15.39 -0.25 17.40 10.28
DAIMLER.............................................41.97 0.58 57.22 29.02
DANONE..............................................47.37 0.06 53.16 41.92
DEU.BOERSE OFFRE ........................43.55 0.70 55.75 35.46
DEUTSCHE BANK..............................33.04 0.14 48.70 20.79
DEUTSCHE TELEKOM.........................8.69 -0.02 11.38 7.88
E.ON.....................................................15.91 -0.07 25.54 12.50
ENEL......................................................3.05 -0.04 4.86 2.78
ENI .......................................................16.83 -0.45 18.66 11.83
FRANCE TELECOM............................11.20 0.01 16.65 11.09
GDF SUEZ ...........................................20.54 -0.27 30.05 17.65
GENERALI ASS...................................12.35 -0.07 17.05 10.34
IBERDROLA..........................................4.46 -0.06 6.10 4.16
INDITEX ...............................................67.07 -0.20 69.40 50.92
ING GROEP CVA...................................6.90 -0.14 9.50 4.21
INTESA SANPAOLO.............................1.45 -0.01 2.47 0.85
KON.PHILIPS ELECTR.......................15.38 0.09 24.12 12.01
L'OREAL..............................................80.61 -0.21 91.24 68.83
LVMH..................................................121.05 0.65 132.65 94.16
MUNICH RE.........................................99.61 -0.54 126.00 77.80
NOKIA....................................................4.06 -0.04 8.49 3.33
REPSOL YPF.......................................21.56 -0.34 24.90 17.31
RWE.....................................................27.07 0.25 55.69 21.15
SAINT-GOBAIN...................................34.47 0.51 47.64 26.07
SANOFI ................................................55.69 -0.06 57.42 42.85
SAP......................................................44.50 0.11 46.15 32.88
SCHNEIDER ELECTRIC.....................48.23 -0.27 61.83 35.00
SIEMENS .............................................73.52 -3.87 99.39 62.13
SOCIETE GENERALE.........................21.00 -0.57 52.70 14.32
TELECOM ITALIA..................................0.77 -0.02 1.16 0.70
TELEFONICA ......................................13.15 -0.05 18.75 12.50
TOTAL..................................................40.33 -0.09 44.55 29.40
UNIBAIL-RODAMCO SE...................145.15 -0.80 162.95 123.30
UNICREDIT............................................3.80 0.05 12.06 2.20
UNILEVER CVA...................................25.42 0.18 27.16 20.90
VINCI ....................................................36.40 0.07 45.48 28.46
VIVENDI ...............................................15.88 -0.06 22.07 14.10
VOLKSWAGEN VORZ ......................137.05 0.85 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5723.00 -28.90 -0.50
FTSE 250 INDEX . . . . . . . 10748.39 11.46 0.11
FTSE UK ALL SHARE . . . . 2949.97 -12.15 -0.41
FTSE AIMALL SH . . . . . . . . 758.08 -0.66 -0.09
DOWJONES INDUS 30 . . 12758.85 83.10 0.66
S&P 500 . . . . . . . . . . . . . . . 1326.06 11.41 0.87
NASDAQ COMPOSITE . . . 2818.31 31.67 1.14
FTSEUROFIRST 300 . . . . . 1039.64 -5.37 -0.51
NIKKEI 225 . . . . . . . . . . . . . 8883.69 98.36 1.12
DAX 30 PERFORMANCE. . 6421.85 2.63 0.04
CAC 40 . . . . . . . . . . . . . . . . 3312.48 -10.17 -0.31
SHANGHAI SE INDEX . . . . 2319.12 23.04 1.00
HANG SENG. . . . . . . . . . . 20110.37 167.42 0.84
S&P/ASX 20 INDEX . . . . . . 2574.50 38.60 1.52
ASX ALL ORDINARIES . . . 4329.10 42.70 1.00
BOVESPA SAO PAOLO. . 62486.22 99.98 0.16
ISEQ OVERALL INDEX . . . 2982.64 -4.26 -0.14
STRAITS TIMES . . . . . . . . . 2891.64 42.26 1.48
IGBM. . . . . . . . . . . . . . . . . . . 858.55 -2.67 -0.31
SWISS MARKET INDEX. . . 6073.36 -61.74 -1.01
Price Chg %chg
3M........................................................86.48 0.55 98.19 68.63
ABBOTT LABS ...................................55.23 -0.75 56.84 45.07
ALCOA ................................................10.48 0.21 18.47 8.45
ALTRIA GROUP..................................28.67 0.39 30.40 23.20
AMAZON.COM..................................187.80 0.80 246.71 160.59
AMERICAN EXPRESS........................50.17 0.94 53.80 41.30
AMGEN INC.........................................69.21 1.02 69.63 47.66
APPLE...............................................446.66 26.25 454.45 310.50
AT&T....................................................30.21 0.12 31.94 27.20
BANK OF AMERICA.............................7.35 0.06 14.95 4.92
BERKSHIRE HATAW B.......................79.85 1.37 87.65 65.35
BOEING CO.........................................75.82 0.46 80.65 56.01
BRISTOL MYERS SQUI ......................32.70 0.45 35.44 20.05
CATERPILLAR..................................109.05 2.76 116.55 67.54
CHEVRON.........................................107.73 1.01 110.99 86.68
CISCO SYSTEMS................................19.83 0.02 22.34 13.30
CITIGROUP.........................................29.96 0.06 49.60 21.40
COCA-COLA.......................................68.43 0.53 71.77 61.29
COLGATE PALMOLIVE......................89.44 1.19 94.89 74.86
CONOCOPHILLIPS.............................69.98 -0.63 81.80 58.65
CVS/CAREMARK................................42.18 -0.26 43.17 31.30
DU PONT(EI) DE NMR........................50.59 1.18 57.00 37.10
EXXON MOBIL....................................87.22 0.04 88.23 63.47
GENERAL ELECTRIC.........................19.13 0.29 21.65 14.02
GOOGLE A........................................569.49 -11.44 670.25 473.02
HEWLETT PACKARD.........................28.32 -0.20 49.39 19.92
HOME DEPOT.....................................45.26 0.30 45.50 28.13
IBM.....................................................191.75 -0.18 194.90 151.71
INTEL CORP .......................................26.90 0.01 26.98 19.16
J.P.MORGAN CHASE.........................37.60 -0.06 48.36 27.85
JOHNSON & JOHNSON.....................65.21 0.21 68.05 57.50
KRAFT FOODS A................................38.37 0.07 39.00 24.30
MC DONALD'S CORP ........................99.23 0.48 102.22 72.89
MERCK AND CO. NEW......................38.68 -0.10 39.43 29.47
MICROSOFT........................................29.56 0.22 29.95 23.65
OCCID. PETROLEUM.......................103.46 2.54 117.89 66.36
ORACLE CORP...................................28.51 0.00 36.50 24.72
PEPSICO.............................................66.70 0.50 71.89 58.50
PFIZER ................................................21.72 0.06 22.17 16.63
PHILIP MORRIS INTL .........................76.81 2.66 79.96 56.25
PROCTER AND GAMBLE ..................64.98 0.48 67.72 56.57
QUALCOMM INC ................................58.99 0.31 59.84 45.98
SCHLUMBERGER ..............................76.19 1.60 95.64 54.79
TRAVELERS CIES..............................59.15 1.15 64.17 45.97
UNITED TECHNOLOGIE ....................77.65 -0.13 91.83 66.87
UNITEDHEALTH GROUP...................51.57 0.24 54.18 39.65
VERIZON COMMS ..............................37.69 -0.10 40.48 32.28
WAL-MART STORES..........................61.47 0.08 62.00 48.31
WALT DISNEY CO ..............................39.56 0.31 44.34 28.19
WELLS FARGO & CO.........................30.20 -0.34 34.25 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.500 0.00
LIBOR Euro - overnight ..................0.282 0.00
LIBOR Euro - 12 months ................1.756 0.00
LIBOR USD - overnight...................0.141 0.00
LIBOR USD - 12 months.................1.107 0.00
HaIifax mortgage rate .....................3.990 -0.02
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 .........................3.070 -0.09
European repo rate.........................0.231 0.00
Euro Euribor ....................................0.416 0.00
The vix index ...................................18.60 -0.77
The baItic dry index ........................807.0 -34.0
Markit iBoxx...................................241.14 -0.41
Markit iTraxx..................................149.56 1.74
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
BAE Systems . . . . . .314.6 -1.9 356.5 248.1
Chemring Group . . . .380.9 -5.6 736.5 368.8
Cobham . . . . . . . . . . .186.8 -1.5 236.5 165.9
Meggitt . . . . . . . . . . . .369.4 -0.6 397.6 304.9
QinetiQ Group . . . . . .134.8 3.5 137.4 101.5
RoIIs-Royce HoIdi . . .739.0 -6.0 769.0 557.5
Senior . . . . . . . . . . . . .182.6 3.5 190.6 132.6
UItra EIectronics . . .1509.0 0.0 1830.0 1305.0
GKN . . . . . . . . . . . . . .210.0 2.1 245.0 157.0
BarcIays . . . . . . . . . . .217.3 -1.3 333.6 138.9
HSBC HoIdings . . . . .537.0 -3.1 730.9 463.5
LIoyds Banking Gr . . .30.9 -0.8 69.3 21.8
RoyaI Bank of Sco . . .26.8 -0.3 49.0 17.3
Standard Chartere .1553.0 -18.0 1712.5 1169.5
AG Barr . . . . . . . . . .1223.0 -2.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .347.2 11.2 465.0 289.9
Diageo . . . . . . . . . . .1418.0 9.5 1429.0 1112.0
SABMiIIer . . . . . . . . .2392.0 3.0 2404.3 1979.0
AZ EIectronic Mat . . .280.3 -4.7 338.1 206.1
Croda Internation . .1892.0 -15.0 2081.0 1456.0
EIementis . . . . . . . . . .148.1 0.4 187.4 107.5
Johnson Matthey . .2010.0 -38.0 2119.0 1523.0
Victrex . . . . . . . . . . .1234.0 3.0 1590.0 1025.0
YuIe Catto & Co . . . . .198.0 6.0 253.0 148.0
C/$ 1.3070 0.0042
C/ 0.8367 0.0025
C/ 101.54 0.3073
/C 1.1953 0.0036
/$ 1.5638 0.0017
/ 121.34 0.0082
FTSE 100
5723.00
28.90
FTSE 250
10748.39
11.46
FTSE ALLSHARE
2949.97
12.15
DOW
12758.85
83.10
NASDAQ
2818.31
31.67
S&P 500
1326.06
11.41
RPC Group . . . . . . . .386.0 0.0 392.0 231.5
Smiths Group . . . . . .978.0 -3.0 1429.0 869.5
Brown (N.) Group . . .229.0 -4.1 304.5 227.0
Carpetright . . . . . . . . .628.0 -2.0 776.0 375.0
Debenhams . . . . . . . . .65.4 0.0 74.8 51.2
Dignity . . . . . . . . . . . .817.0 1.0 854.5 648.5
Dixons RetaiI . . . . . . .14.7 0.1 22.3 9.4
DuneImGroup . . . . . .479.4 4.4 524.5 383.9
HaIfords Group . . . . .318.5 10.5 416.0 268.6
Home RetaiI Group . . .99.6 2.5 235.0 72.5
Inchcape . . . . . . . . . .341.0 2.5 425.4 268.1
JD Sports Fashion . .705.0 -18.0 1030.0 570.0
Kesa EIectricaIs . . . . .66.4 -0.1 151.4 60.2
Kingfisher . . . . . . . . .258.4 -0.1 287.1 217.0
Marks & Spencer G . .329.4 -1.7 402.2 301.8
Next . . . . . . . . . . . . .2589.0 -8.0 2810.0 1868.0
Sports Direct Int . . . .232.8 2.8 266.2 159.0
WH Smith . . . . . . . . . .554.0 22.0 563.0 433.8
Smith & Nephew . . . .605.5 -1.5 742.0 521.0
Synergy HeaIth . . . . .865.5 -3.0 981.0 808.0
Barratt DeveIopme . .110.2 0.3 119.0 67.5
BeIIway . . . . . . . . . . . .725.5 -9.5 776.5 540.5
BerkeIey Group Ho .1247.0 -16.0 1360.0 884.5
BaIfour Beatty . . . . . .280.3 -0.2 357.3 214.6
CRH . . . . . . . . . . . . .1280.0 -18.0 1700.0 1053.0
GaIIiford Try . . . . . . . .473.5 -16.5 530.0 307.5
Kier Group . . . . . . . .1345.0 -21.0 1458.0 1097.0
Drax Group . . . . . . . .511.0 -8.5 581.5 371.9
SSE . . . . . . . . . . . . . .1224.0 -29.0 1423.0 1159.0
Domino Printing S . .570.0 -13.5 705.0 434.3
HaIma . . . . . . . . . . . . .344.0 -1.1 429.6 306.3
Laird . . . . . . . . . . . . . .165.6 2.0 207.0 127.9
Morgan CrucibIe C . .303.3 3.9 357.1 224.0
Oxford Instrument . .910.0 3.5 1010.0 600.5
Renishaw . . . . . . . . .1283.0 128.0 1886.0 800.0
Spectris . . . . . . . . . .1518.0 17.0 1679.0 1039.0
Aberforth SmaIIer . . .560.5 6.5 714.0 494.0
AIIiance Trust . . . . . .356.2 -0.8 392.7 310.2
Bankers Inv Trust . . .398.5 -4.6 428.0 346.5
BH GIobaI Ltd. GB .1170.0 -13.0 1212.0 1058.0
BH GIobaI Ltd. US . . . .11.6 -0.3 12.2 10.4
BH Macro Ltd. EUR . . .19.7 -0.2 20.2 16.3
BH Macro Ltd. GBP 2035.0 -20.0 2079.0 1661.0
BH Macro Ltd. USD . . .19.5 -0.3 20.2 16.2
BIackRock WorId M .694.0 2.5 815.5 574.5
BIueCrest AIIBIue . . .163.5 -1.0 176.2 162.4
British Assets Tr . . . .122.0 -1.7 139.5 109.0
British Empire Se . . .430.5 -2.5 533.0 404.0
CaIedonia Investm .1459.0 -5.0 1826.0 1337.0
City of London In . . .284.8 -7.4 306.9 257.0
Dexion AbsoIute L . .139.0 0.0 151.0 130.0
Edinburgh Dragon . .234.5 -3.6 252.0 201.4
Edinburgh Inv Tru . . .471.6 -3.9 492.2 414.9
EIectra Private E . . .1452.0 -3.0 1755.0 1287.0
F&C Inv Trust . . . . . .298.1 0.3 327.9 261.5
FideIity China Sp . . . . .80.7 -0.1 114.3 70.0
FideIity European . .1049.0 -6.0 1287.0 912.0
HeraId Inv Trust . . . . .478.0 -2.0 545.5 419.0
HICL Infrastructu . . . .117.3 -0.2 121.3 112.7
Impax Environment . .99.0 -1.1 125.9 88.5
John Laing Infras . . .108.4 -0.2 109.6 103.4
JPMorgan American .907.0 -15.5 927.0 721.5
JPMorgan Asian In . .196.0 -0.9 244.0 170.1
JPMorgan Emerging .550.0 -1.5 610.5 480.1
JPMorgan European .691.0 -2.0 983.5 624.0
JPMorgan Indian I . . .361.0 -3.5 459.0 313.1
JPMorgan Russian .526.0 3.5 741.0 415.1
Law Debenture Cor . .348.1 -0.5 385.0 321.0
MercantiIe Inv Tr . . . .931.0 -6.0 1137.0 823.0
Merchants Trust . . . .370.0 -11.0 431.8 341.5
Monks Inv Trust . . . .316.5 0.1 367.9 298.1
Murray Income Tru . .636.5 -3.0 673.0 568.0
Murray Internatio . . .952.0 2.0 991.5 818.5
PerpetuaI Income . . .258.1 -4.9 276.0 236.5
PersonaI Assets T .33820.0 -80.0 34100.030210.0
PoIar Cap TechnoI . .345.8 7.4 391.2 299.5
RIT CapitaI Partn . . .1208.0 21.0 1360.0 1173.0
Scottish Inv Trus . . . .471.0 -5.7 524.0 417.0
Scottish Mortgage . .645.0 2.5 781.0 565.0
SVG CapitaI . . . . . . . .218.9 0.0 279.8 165.1
TempIe Bar Inv Tr . . .887.0 -11.0 952.0 791.0
TempIeton Emergin .584.0 -6.0 684.5 497.0
TR Property Inv T . . .152.7 -0.1 206.1 136.2
TR Property Inv T . . . .64.0 -0.1 94.0 59.8
Witan Inv Trust . . . . .467.2 -2.4 533.0 401.5
3i Group . . . . . . . . . . .185.0 0.0 319.4 166.9
3i Infrastructure . . . .120.0 0.0 124.0 113.1
Aberdeen Asset Ma .236.4 -1.6 240.8 167.8
Ashmore Group . . . .370.0 15.0 420.0 301.5
Brewin DoIphin Ho . .145.2 -2.3 185.4 113.7
CameIIia . . . . . . . . . .9649.0 -0.510950.0 8800.0
CharIes TayIor Co . . .136.8 10.3 165.0 115.6
City of London Gr . . . .66.0 0.5 93.6 61.3
City of London In . . .363.8 -0.5 450.0 304.3
CIose Brothers Gr . . .664.5 2.0 875.0 590.0
CoIIins Stewart H . . . .94.0 0.5 94.0 48.5
F&C Asset Managem .65.4 0.3 91.0 56.1
Hargreaves Lansdo .421.9 -9.1 646.5 402.5
HeIphire Group . . . . . . .2.3 0.2 17.4 1.4
Henderson Group . . .113.8 -0.9 173.1 95.1
Highway CapitaI . . . . .12.0 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .332.7 -5.8 559.0 311.6
IG Group HoIdings . .481.4 -1.0 502.5 393.6
Intermediate Capi . . .274.9 0.6 354.7 197.9
InternationaI Per . . . .198.4 5.4 388.8 148.5
InternationaI Pub . . . .118.6 0.0 121.5 108.6
Investec . . . . . . . . . . .376.7 0.1 522.0 318.4
IP Group . . . . . . . . . . . .82.0 3.0 82.8 32.7
Jupiter Fund Mana . .225.4 0.4 337.3 184.9
Liontrust Asset M . . . .77.1 0.3 87.5 57.9
LMS CapitaI . . . . . . . . .56.9 -0.1 64.8 51.0
London Finance & . . .23.5 0.0 23.5 19.0
London Stock Exch .867.5 -6.5 1076.0 756.5
Lonrho . . . . . . . . . . . . .11.3 -0.3 19.8 8.9
Man Group . . . . . . . . .118.0 -1.0 311.0 104.5
Paragon Group Of . .182.5 3.0 206.1 134.6
Provident Financi . . .966.5 -9.0 1124.0 915.0
Rathbone Brothers .1122.0 32.0 1257.0 977.0
Record . . . . . . . . . . . . .12.5 0.0 35.8 12.0
RSM Tenon Group . . . .6.1 0.2 59.8 5.8
Schroders . . . . . . . .1472.0 -11.0 1906.0 1183.0
Schroders (Non-Vo .1211.0 -2.0 1554.0 970.0
TuIIett Prebon . . . . . .297.5 -2.3 428.6 262.3
WaIker Crips Grou . . .45.0 0.0 51.5 43.3
BT Group . . . . . . . . . .207.4 -1.4 210.0 161.0
CabIe & WireIess . . . .41.4 0.8 51.2 31.3
CabIe & WireIess . . . .21.5 -0.3 76.9 14.2
COLT Group SA . . . . .89.7 -0.9 156.2 84.1
KCOM Group . . . . . . . .68.5 0.5 84.0 57.5
TaIkTaIk TeIecom . . .123.2 -0.6 161.5 119.8
TeIecomPIus . . . . . . .662.5 7.5 802.0 440.0
Booker Group . . . . . . .73.7 0.3 80.0 54.5
Greggs . . . . . . . . . . . .510.0 -1.0 550.5 445.0
Morrison (Wm) Sup .295.7 -0.5 328.0 264.0
Ocado Group . . . . . . . .82.3 2.1 285.0 52.9
Sainsbury (J) . . . . . . .289.7 -0.6 391.2 263.5
Tesco . . . . . . . . . . . . .322.9 -7.2 420.1 312.4
Associated Britis . . .1160.0 3.0 1167.0 940.0
Cranswick . . . . . . . . .749.5 7.5 862.0 588.5
Dairy Crest Group . . .318.4 -1.0 409.7 310.1
Devro . . . . . . . . . . . . .261.0 1.7 296.9 223.5
Tate & LyIe . . . . . . . . .676.0 6.0 720.5 520.0
UniIever . . . . . . . . . .2050.0 5.0 2189.0 1793.0
Mondi . . . . . . . . . . . . .502.0 -2.0 664.0 413.5
Centrica . . . . . . . . . . .288.5 1.0 345.8 278.8
InternationaI Pow . . .324.7 -3.3 436.6 279.4
NationaI Grid . . . . . . .619.0 -3.0 649.5 543.5
Pennon Group . . . . . .689.0 -1.0 737.5 584.5
Severn Trent . . . . . .1520.0 -2.0 1600.0 1368.0
United UtiIities . . . . .601.0 2.0 637.0 543.5
Cookson Group . . . . .569.0 14.0 724.5 395.8
DS Smith . . . . . . . . . .237.5 6.6 266.2 164.4
Rexam . . . . . . . . . . . .382.5 5.8 400.0 299.8
Price Chg High Low
Bovis Homes Group .446.1 -7.6 499.6 326.5
Persimmon . . . . . . . .515.0 -4.5 524.5 374.0
Reckitt Benckiser . .3365.0 1.0 3578.0 3015.0
Redrow . . . . . . . . . . . .122.2 2.4 136.2 103.5
TayIor Wimpey . . . . . . .41.8 -0.1 43.8 28.7
Bodycote . . . . . . . . . .291.2 -6.1 397.7 225.6
Fenner . . . . . . . . . . . .452.6 11.1 462.0 280.0
IMI . . . . . . . . . . . . . . . .850.0 11.5 1119.0 636.5
MeIrose . . . . . . . . . . .370.0 10.0 370.9 268.0
Northgate . . . . . . . . . .213.6 4.8 346.7 190.9
Rotork . . . . . . . . . . .1880.0 -6.0 1979.0 1501.0
Spirax-Sarco Engi . .1938.0 28.0 2063.0 1649.0
Weir Group . . . . . . .1964.0 37.0 2218.0 1375.0
Evraz . . . . . . . . . . . . .442.7 8.0 448.5 315.0
Ferrexpo . . . . . . . . . . .330.1 -3.2 499.0 238.7
TaIvivaara Mining . . .333.5 -9.5 622.0 195.2
BBAAviation . . . . . . .191.0 1.0 240.8 156.0
Stobart Group Ltd . . .122.0 1.8 163.6 112.0
AdmiraI Group . . . . . .903.0 -6.5 1754.0 787.0
AmIin . . . . . . . . . . . . .355.2 4.3 427.0 270.6
BeazIey . . . . . . . . . . . .141.8 1.7 141.8 109.6
Informa . . . . . . . . . . . .388.7 7.8 461.1 313.9
ITE Group . . . . . . . . . .211.9 -0.4 258.2 157.7
ITV . . . . . . . . . . . . . . . . .75.2 -0.2 93.5 51.7
Johnston Press . . . . . . .6.3 0.2 12.8 4.1
MecomGroup . . . . . .218.8 -1.3 310.0 134.5
Moneysupermarket. .113.4 -3.4 120.4 84.8
Pearson . . . . . . . . . .1180.0 -3.0 1255.0 1013.0
PerformGroup . . . . .239.7 -0.3 250.0 150.0
Reed EIsevier . . . . . .536.0 0.5 590.5 461.3
Rightmove . . . . . . . .1299.0 6.0 1408.0 800.0
STV Group . . . . . . . . . .91.0 -2.5 168.0 76.3
Tarsus Group . . . . . .137.5 -1.5 165.0 119.5
Trinity Mirror . . . . . . . .47.0 -0.5 89.5 37.5
UBM . . . . . . . . . . . . . .538.0 -1.5 725.0 416.0
UTV Media . . . . . . . . .106.3 -2.3 150.0 92.5
WiImington Group . . .79.5 -1.0 183.0 79.0
WPP . . . . . . . . . . . . . .749.0 -2.5 846.5 578.0
YeII Group . . . . . . . . . . .5.9 0.2 11.8 3.4
African Barrick G . . .465.7 0.3 616.5 393.5
AIIied GoId Minin . . .146.4 -8.6 281.3 34.4
AngIo American . . .2654.5 -2.0 3437.0 2138.5
AngIo Pacific Gro . . .280.7 1.6 369.3 237.9
Antofagasta . . . . . . .1356.0 -3.0 1524.0 900.5
Aquarius PIatinum . .183.3 5.3 419.0 149.0
BHP BiIIiton . . . . . . .2129.0 0.0 2631.5 1667.0
CatIin Group Ltd. . . .416.5 4.9 421.4 334.0
Hiscox Ltd. . . . . . . . . .390.4 -2.2 424.7 340.5
Jardine LIoyd Tho . . .690.0 -0.5 764.5 576.0
Lancashire HoIdin . . .714.0 9.0 774.5 532.5
RSA Insurance Gro . .107.6 -1.3 143.5 99.6
Aviva . . . . . . . . . . . . . .354.4 0.3 477.9 275.3
LegaI & GeneraI G . . .117.2 0.8 123.8 89.8
OId MutuaI . . . . . . . . .144.3 -2.8 148.7 98.1
Phoenix Group HoI . .563.5 -16.5 688.0 451.1
PrudentiaI . . . . . . . . .704.5 -1.0 777.0 509.0
ResoIution Ltd. . . . . .272.3 1.8 316.1 229.5
St James's PIace . . . .348.4 -1.5 376.0 294.0
Standard Life . . . . . . .216.7 -2.0 244.7 172.0
4Imprint Group . . . . .263.5 2.0 295.0 200.0
Aegis Group . . . . . . .154.9 1.8 161.9 115.7
BIoomsbury PubIis . .107.5 2.3 138.0 91.3
British Sky Broad . . .672.5 -9.5 850.0 618.5
Centaur Media . . . . . . .35.8 -0.4 73.0 32.5
Chime Communicati .193.8 0.0 298.5 163.0
Creston . . . . . . . . . . . .67.0 0.0 121.0 65.5
DaiIy MaiI and Ge . . .438.3 1.2 594.5 343.4
Euromoney Institu . .675.0 9.0 736.0 522.5
Future . . . . . . . . . . . . . .10.3 -0.3 30.0 8.3
Haynes PubIishing . .225.0 0.0 257.0 210.0
Huntsworth . . . . . . . . .40.0 2.0 81.0 32.3
Bumi . . . . . . . . . . . . . .871.5 0.0 880.0 853.0
Centamin (DI) . . . . . . . .94.7 -2.6 154.2 78.5
Eurasian NaturaI . . .731.5 20.5 1076.0 522.0
FresniIIo . . . . . . . . . .1743.0 -9.0 2150.0 1296.0
GemDiamonds Ltd. .209.4 6.0 306.0 179.8
GIencore Internat . . .418.5 -8.7 531.1 348.0
HochschiId Mining . .470.7 -24.3 680.0 365.9
Kazakhmys . . . . . . .1113.0 7.0 1631.0 730.0
Kenmare Resources . .46.3 -1.3 59.9 31.0
Lonmin . . . . . . . . . . .1043.0 9.0 1880.0 941.0
New WorId Resourc .453.6 8.7 1060.0 409.4
PetropavIovsk . . . . . .696.5 9.0 1090.0 543.5
PoIymetaI Interna . .1069.0 -14.0 1154.0 877.0
RandgoId Resource 6825.0-140.0 7555.0 4425.0
Rio Tinto . . . . . . . . . .3711.5 11.5 4712.0 2712.5
Vedanta Resources .1152.0 -7.0 2518.0 928.0
Xstrata . . . . . . . . . . .1079.0 0.5 1550.0 764.0
Inmarsat . . . . . . . . . . .412.0 2.5 719.5 389.3
Vodafone Group . . . .174.6 -1.7 182.8 155.1
Genesis Emerging . .485.0 -0.1 548.5 424.0
Afren . . . . . . . . . . . . . .125.7 7.3 171.2 73.6
BG Group . . . . . . . . .1458.5 -13.5 1564.5 1144.0
BP . . . . . . . . . . . . . . . .474.6 -2.9 497.5 363.2
Cairn Energy . . . . . . .282.3 -0.1 469.7 257.8
EnQuest . . . . . . . . . . .107.2 -1.2 158.5 85.7
Essar Energy . . . . . .136.0 -1.1 543.0 120.0
ExiIIon Energy . . . . . .264.0 -3.5 469.7 184.2
Heritage OiI . . . . . . . .201.2 0.4 436.6 160.0
Ophir Energy . . . . . . .299.7 -1.3 318.8 184.5
Premier OiI . . . . . . . . .432.5 -6.5 535.0 310.0
RoyaI Dutch SheII . .2278.0 -37.5 2402.0 1883.5
RoyaI Dutch SheII . .2356.0 -42.0 2489.0 1890.5
SaIamander Energy .230.2 -3.9 317.6 182.3
Soco Internationa . . .297.5 -6.8 400.0 278.0
TuIIow OiI . . . . . . . . .1388.0 1.0 1493.0 945.5
Amec . . . . . . . . . . . .1008.0 5.0 1251.0 740.5
Hunting . . . . . . . . . . .792.5 -37.5 843.0 530.0
Kentz Corporation . .435.0 -1.5 508.0 347.0
LampreII . . . . . . . . . . .289.2 -6.8 395.2 220.7
Petrofac Ltd. . . . . . .1439.0 -5.0 1612.0 1108.0
Wood Group (John) .656.0 -0.5 715.8 469.9
Burberry Group . . . .1314.0 -13.0 1600.0 1063.0
PZ Cussons . . . . . . . .285.0 -11.0 387.9 284.6
Supergroup . . . . . . . .612.0 -8.0 1820.0 435.2
AstraZeneca . . . . . .3035.0 -21.5 3194.0 2543.5
BTG . . . . . . . . . . . . . .323.0 3.8 331.3 210.1
Genus . . . . . . . . . . . .1034.0 0.0 1111.0 853.5
GIaxoSmithKIine . . .1426.0 1.0 1497.0 1127.5
Hikma Pharmaceuti .729.5 -2.5 875.0 555.5
Shire PIc . . . . . . . . . .2113.0 -7.0 2243.0 1634.0
CapitaI & Countie . . .185.0 -1.3 203.7 142.8
Daejan HoIdings . . .2850.0 -30.0 2954.0 2282.0
F&C CommerciaI Pr .103.1 -0.6 108.0 92.6
Grainger . . . . . . . . . . .100.3 -1.6 133.2 77.3
London & Stamford .106.7 -0.6 140.0 103.9
SaviIIs . . . . . . . . . . . . .323.1 11.2 427.1 256.2
UK CommerciaI Pro . .74.5 -0.1 85.5 65.1
Unite Group . . . . . . . .170.6 -2.8 224.1 152.9
Big YeIIow Group . . .272.4 2.5 344.4 218.0
British Land Co . . . . .491.9 1.9 629.5 444.0
CapitaI Shopping . . .326.0 -0.6 408.6 288.7
Derwent London . . .1666.0 -9.0 1880.0 1400.0
Great PortIand Es . . .351.3 -1.9 445.0 312.9
Hammerson . . . . . . . .385.6 3.9 490.9 345.2
Hansteen HoIdings . . .74.0 -0.5 89.5 68.0
Land Securities G . . .687.0 5.0 885.0 612.0
SEGRO . . . . . . . . . . . .219.9 1.3 331.3 195.0
Shaftesbury . . . . . . . .505.0 -8.0 539.0 436.8
Aveva Group . . . . . .1585.0 -5.0 1799.0 1298.0
Computacenter . . . . .390.0 -1.1 490.0 324.7
Fidessa Group . . . . .1671.0 1.0 2109.0 1444.0
Invensys . . . . . . . . . . .200.5 4.4 357.8 180.9
Logica . . . . . . . . . . . . .78.8 1.3 147.2 59.0
Micro Focus Inter . . .449.6 6.6 455.0 242.9
Misys . . . . . . . . . . . . .325.5 14.5 420.2 214.9
Sage Group . . . . . . . .305.2 1.2 310.1 231.7
SDL . . . . . . . . . . . . . . .693.5 1.5 711.5 586.0
TeIecity Group . . . . . .655.5 0.0 658.0 450.5
Aggreko . . . . . . . . . .2079.0 28.0 2131.0 1394.5
Ashtead Group . . . . .229.0 7.3 233.3 99.4
Atkins (WS) . . . . . . . .681.5 3.5 820.0 490.2
Babcock Internati . . .740.0 0.0 758.0 542.0
Berendsen . . . . . . . . .443.4 -17.4 568.0 402.7
BunzI . . . . . . . . . . . . .855.5 -4.0 906.5 676.5
Cape . . . . . . . . . . . . . .384.1 4.1 591.5 295.0
Capita . . . . . . . . . . . . .644.5 -1.5 786.5 611.5
CariIIion . . . . . . . . . . .317.8 -0.5 403.2 281.0
De La Rue . . . . . . . . .968.0 7.0 979.0 667.0
DipIoma . . . . . . . . . . .383.9 7.2 414.3 263.5
EIectrocomponents .215.9 2.4 294.9 182.2
Experian . . . . . . . . . . .876.5 -3.0 902.5 665.0
FiItrona PLC . . . . . . . .386.1 -0.3 404.5 276.0
G4S . . . . . . . . . . . . . . .269.8 0.4 291.0 219.9
Hays . . . . . . . . . . . . . . .73.6 1.3 130.0 58.9
Homeserve . . . . . . . .298.9 -3.6 532.0 218.5
Howden Joinery Gr . .109.8 2.1 127.5 93.1
Interserve . . . . . . . . . .299.4 -0.5 341.3 239.8
Intertek Group . . . . .2124.0 -2.0 2148.0 1737.0
MichaeI Page Inte . . .397.6 -2.2 567.0 323.0
Mitie Group . . . . . . . .270.5 6.3 271.0 195.9
PayPoint . . . . . . . . . . .585.0 20.0 585.0 327.3
Premier FarneII . . . . .205.8 4.0 308.8 144.5
Regus . . . . . . . . . . . . . .94.3 4.2 119.0 64.0
RentokiI InitiaI . . . . . . .74.6 0.4 104.7 58.2
RPS Group . . . . . . . . .201.2 -1.5 253.0 156.6
Serco Group . . . . . . .512.5 -2.5 618.5 458.0
Shanks Group . . . . . . .98.1 -0.4 130.9 90.8
SIG . . . . . . . . . . . . . . .100.5 -0.5 153.5 77.0
Travis Perkins . . . . . .874.0 9.0 1090.0 715.0
WoIseIey . . . . . . . . .2185.0 -7.0 2261.0 1404.0
ARM HoIdings . . . . . .597.5 17.5 651.0 464.0
CSR . . . . . . . . . . . . . .228.5 -0.2 447.0 154.1
Imagination Techn . .566.5 14.5 577.0 296.9
Spirent Communica .121.0 0.0 160.0 105.8
British American . .2939.0 -16.0 3079.0 2300.0
ImperiaI Tobacco . .2263.0 19.0 2444.0 1784.0
Betfair Group . . . . . . .855.0 -2.0 1030.0 567.0
Bwin.party Digita . . .154.0 -1.0 204.0 100.6
CarnivaI . . . . . . . . . .1943.0 -47.0 3000.0 1742.0
Compass Group . . . .599.0 -8.5 619.5 512.5
Domino's Pizza UK . .457.0 -2.6 549.0 377.0
easyJet . . . . . . . . . . . .403.8 -1.2 422.5 301.0
FirstGroup . . . . . . . . .304.7 -6.1 386.6 301.8
Go-Ahead Group . . .1261.0 -15.0 1598.0 1190.0
Greene King . . . . . . .507.0 0.0 520.5 410.0
InterContinentaI . . .1325.0 21.0 1435.0 955.0
InternationaI Con . . .171.7 2.2 277.8 132.0
JD Wetherspoon . . . .413.8 -0.6 468.3 380.5
Ladbrokes . . . . . . . . .138.7 -0.3 155.3 114.0
Marston's . . . . . . . . . . .98.0 1.9 112.0 84.6
MiIIennium& Copt . .430.0 -0.8 600.5 371.2
MitcheIIs & ButIe . . . .258.6 -2.7 357.0 215.6
NationaI Express . . .216.6 -5.2 270.2 201.6
Rank Group . . . . . . . .127.6 0.5 153.7 109.5
Restaurant Group . . .295.0 -0.4 335.0 254.9
Spirit Pub Compan . . .48.5 -0.5 55.0 35.3
Stagecoach Group . .276.4 1.5 281.2 200.0
TUI TraveI . . . . . . . . . .190.7 1.3 271.9 136.7
Whitbread . . . . . . . .1680.0 18.0 1863.0 1409.0
WiIIiamHiII . . . . . . . . .225.2 0.6 244.1 176.8
Abcam . . . . . . . . . . . .339.5 -0.8 460.0 316.0
Advanced MedicaI . . .86.0 -1.3 96.0 64.8
AIbemarIe & Bond . .341.5 -4.0 400.1 272.0
Amerisur Resource . .19.3 0.3 29.0 9.5
Andor TechnoIogy . .560.0 -25.0 685.0 387.1
ArchipeIago Resou . . .69.0 -1.0 79.0 55.5
ASOS . . . . . . . . . . . .1810.0 99.0 2468.0 1142.0
AureIian OiI & Ga . . . .16.5 0.0 92.0 15.5
Avanti Communicat .289.0 -1.0 628.0 248.5
BIinkx . . . . . . . . . . . . . .68.5 -1.8 158.0 50.5
Borders & Souther . . .71.0 -2.0 74.6 43.5
BowLeven . . . . . . . . . .78.5 -1.8 382.3 62.0
Brooks MacdonaId .1132.5 0.0 1372.5 940.0
Cove Energy . . . . . . .137.0 1.3 138.8 61.0
Daisy Group . . . . . . .104.0 4.5 127.0 88.0
EMIS Group . . . . . . . .417.6 -2.4 580.0 377.1
Faroe PetroIeum . . . .162.0 0.8 205.0 130.0
GuIfsands PetroIe . . .170.8 2.5 357.0 142.5
GWPharmaceuticaI . .94.0 0.5 130.0 78.5
H&T Group . . . . . . . . .352.5 -1.0 395.0 277.0
Hamworthy . . . . . . . .822.0 -1.0 833.5 406.3
Hargreaves Servic .1156.0 6.0 1180.0 845.0
HeaIthcare Locums . . . .3.1 -0.1 3.2 3.0
Immunodiagnostic . .290.0 1.3 1218.0 284.0
ImpeIIamGroup . . . .236.5 0.0 387.5 195.0
James HaIstead . . . . .440.0 -15.3 495.0 390.0
KaIahari MineraIs . . .243.3 0.8 301.0 198.3
London Mining . . . . .289.0 7.0 436.5 257.5
Lupus CapitaI . . . . . .126.0 1.0 150.0 86.0
M. P. Evans Group . .445.0 4.0 475.0 371.0
Majestic Wine . . . . . .406.8 -1.5 510.0 315.0
May Gurney Integr . .278.0 -2.0 302.0 234.0
Monitise . . . . . . . . . . . .28.0 -0.3 40.0 18.5
MuIberry Group . . . .1652.0 -20.0 1920.0 1065.0
Nanoco Group . . . . . . .60.3 4.0 95.0 38.0
NauticaI PetroIeu . . .319.0 -15.5 547.0 223.5
NichoIs . . . . . . . . . . . .596.0 -14.0 615.0 410.0
Numis Corporation . . .93.5 -0.5 126.0 72.0
Pan African Resou . . .16.8 1.3 17.0 9.5
Patagonia GoId . . . . . .43.0 -1.5 70.0 37.3
Prezzo . . . . . . . . . . . . .66.9 1.9 71.5 53.5
Pursuit Dynamics . . .103.0 -2.0 410.0 67.0
Rockhopper ExpIor .337.5 -3.5 386.0 141.0
RWS HoIdings . . . . . .452.5 0.0 481.6 328.0
Secure Trust Bank . .915.0 0.0 920.0 755.0
Songbird Estates . . . .111.0 0.3 160.3 104.0
VaIiant PetroIeum . . .421.0 2.0 645.0 400.0
Young & Co's Brew . .637.0 -1.5 712.0 565.0
Renishaw . . . . . . . . .1283.0 11.1
Afren . . . . . . . . . . . . .125.7 6.2
Misys . . . . . . . . . . . . .325.5 4.7
Regus . . . . . . . . . . . . . .94.3 4.6
Ashmore Group . . . .370.0 4.2
WH Smith . . . . . . . . . .554.0 4.1
SaviIIs . . . . . . . . . . . .323.1 3.6
PayPoint . . . . . . . . . .585.0 3.5
HaIfords Group . . . . .318.5 3.4
Britvic . . . . . . . . . . . . .347.2 3.3
AIIied GoId Mining . .146.4 -5.6
HochschiId Mining . .470.7 -4.9
Hunting . . . . . . . . . . .792.5 -4.5
Berendsen . . . . . . . . .443.4 -3.8
PZ Cussons . . . . . . . .285.0 -3.7
GaIIiford Try . . . . . . . .473.5 -3.4
Moneysupermarket.c 113.4 -2.9
Merchants Trust . . . .370.0 -2.9
Phoenix Group HoId .563.5 -2.8
TaIvivaara Mining . . .333.5 -2.8
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
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AUTOMOBILES & PARTS
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MINING
NONEQUITY INVESTM. COMM.
Tsy 5.000 12 . . . .100.49 -0.05 104.7 100.4
Tsy 5.250 12 . . . .101.76 -0.02 105.9 101.7
Tsy 9.000 12 . . . .103.75 -0.75 112.1 103.3
Tsy 4.500 13 . . . .104.51 0.00 106.9 104.5
Tsy 2.500 13 . . . .283.18 -0.02 287.7 279.0
Tsy 8.000 13 . . . . .112.56 0.00 117.7 112.4
Tsy 5.000 14 . . . . .111.76 0.04 112.9 109.2
Tsy 4.750 15 . . . . .114.53 0.08 115.4 108.6
Tsy 8.000 15 . . . .127.68 0.08 129.2 123.7
Tsy 7.750 15 . . . .100.00 0.00 106.8 99.4
Tsy 4.000 16 . . . . .113.62 0.11 115.0 104.9
Tsy 2.500 16 . . . .341.71 0.04 344.2 312.1
Tsy 8.750 17 . . . .140.45 -0.22 141.9 132.9
Tsy 1.250 17 . . . . .115.17 -0.05 116.6 106.7
Tsy 12.000 17 . . .121.42 0.00 129.8 120.9
Tsy 5.000 18 . . . .121.30 0.07 122.5 109.7
Tsy 4.500 19 . . . . .119.43 0.10 120.7 105.4
Tsy 3.750 19 . . . . .114.21 0.10 115.6 99.4
Tsy 2.500 20 . . . .361.30 -0.01 367.1 314.0
Tsy 4.750 20 . . . .121.78 0.14 123.5 106.6
Tsy 8.000 21 . . . .150.85 0.16 153.4 133.8
Tsy 1.875 22 . . . .125.72 -0.01 129.1 111.3
Tsy 4.000 22 . . . . .115.99 0.18 118.2 99.0
Tsy 2.500 24 . . . .325.35 -0.05 334.7 275.6
Tsy 5.000 25 . . . .127.86 0.18 130.6 107.4
Tsy 4.250 27 . . . . .119.96 0.25 122.7 97.9
Tsy 1.250 27 . . . .122.73 -0.08 127.0 104.8
Tsy 6.000 28 . . . .144.84 0.27 148.0 119.5
Tsy 4.750 30 . . . .127.40 0.21 130.5 103.0
Tsy 4.125 30 . . . .313.65 -0.17 322.8 262.9
Tsy 4.250 32 . . . . .119.94 0.20 123.1 96.0
Tsy 4.250 36 . . . .120.43 0.18 123.9 95.0
Tsy 4.750 38 . . . .130.17 0.10 134.2 102.8
Tsy 4.500 42 . . . .126.67 0.10 130.8 98.9
% %
Wealth Management| Isas
H
IDDEN among the carnage fol-
lowing the implosion of
Lehman Brothers in 2008 lay an
opportunity to profit from cor-
porate bonds. And for those who
werent busy stocking up on water,
guns and canned food, corporate bond
funds have proved an invaluable
hedge against volatile and broadly
weak equity returns and inflations
creeping decimation of their wealth.
Hindsight is a wonderful thing and
betting on corporate bonds didnt
come without risks and it still does-
nt. Although Andrew Wells, chief
investment officer of fixed income at
Fidelity, points out that high-quality
investment grade corporate bonds can
offer many of the characteristics once
associated with sovereigns, as
Evolves Jason Witcombe cautions:
Bonds can be low risk if they are high
quality and short dated but they can
carry a huge amount of risk too if
countries can go bust, so can compa-
nies. As John Anderson, fund manag-
er of JP Morgans sterling corporate
bond fund, notes: The collapse of
Lehmans in 2008 saw many bond
investors lose money as bond prices
fell sharply, even though interest rates
were falling sharply (usually support-
ive of bond prices). Although an
exceptional year, Anderson acknowl-
edges: With bonds issued by Icelandic
banks also defaulting, some bond
funds fell as much as 30 per cent dur-
ing that year hardly the haven that
bond funds are perceived as being.
Of course, losing 30 per cent is bet-
ter than losing everything. Danny Cox
of Hargreaves Lansdown notes that an
individual corporate bond relies on
the strength of the company that
issues the bond, so if this company
goes bust the investor may suffer large
losses. However, with a bond fund
there are typically over 100 different
holdings providing more security
should one company
fail.
In the after-
math of the
Lehmans collapse
in 2008 says
Anderson, the yields
on most corporate
bonds rose (and
the prices of
these bonds
fell) sharply
as markets
feared a total
collapse in
the global econ-
omy. However,
he says that once these
fears proved unfounded,
investors saw that the yields on offer
were very attractive: For the past four
years investors have sought a safer
alternative to equities, while deposi-
tors have sought a higher return than
those on offer from money market
accounts, as interest rates look set to
remain lower for longer much of
this money has gone into the corpo-
rate bond market via Isas.
TAKE COVER
Besides the diversification, there are
tax advantages to shelter your corpo-
rate bond fund under an Isa wrapper.
Witcombe says: Whereas Isa man-
agers cant reclaim the 10 per cent tax
credit on equity dividends, income
and growth on bond funds is all tax
free in an Isa. Although these tax
breaks may not make much differ-
ence over one year, he says the com-
pounding factor of this tax efficiency
can really add up in the long run. The
restrictions come in the Isa allowance
10,680 per person for the tax year
2011-12 and of course the fees that
you charge your fund managers.
The $1m question is: will corporate
bonds continue to rise? Wells argues
that many companies are now in a bet-
ter position than their governments:
They have kept their cost bases under
control; they continue to have access
to bank lending, even if terms have
become tighter, and they have actively
managed their own refinancing needs
in the past two years to protect them-
selves from this kind of volatility.
Anderson notes: With interest rates
set to remain at these very low levels
for the foreseeable
future, corpo-
rate bonds
look set to
r e m a i n
w e l l
s uppor t ed.
Although he
cautions that
the market is not
without risk and
any further crisis in
the Eurozone could see the
prices of bonds issued by
European companies
most notably banks fall in value.
Finance 101 teaches that interest
rates tend to have an inverse relation-
ship with bond prices. Although rates
dont look like budging any time
soon, if the expectations of deflation
dont materialise, governments might
be forced at some point to push rates
higher, especially if voters revolt
against the continued redistribu-
tion of wealth from savers to
debtors.
Bailouts aside, proper capitalism sees
companies go bust all the time but
you can spread risk, writes Philip Salter
TOP 10 ISA ELIGIBLE UK REGISTERED CORPORATE BOND FUNDS
Corporate % Change Latest Bid Latest Portfolio Total Expense Domicile/
Bond Fund 23/1/2009 23/1/2012 Size (m) Ratio Currency
Old Mutual Corporate Bond Acc 74.37 1.63 500.54 1.24 UK/GBP
Henderson Sterling Bond Retail Inc 73.54 0.55 485.63 1.45 UK/GBP
Baillie Gifford Corp Bd A Inc 67.2 0.67 145.4 1.09 UK/GBP
Ignis Corporate Bond Inc 56.71 0.92 238.94 1.22 UK/GBP
Kames Sterling Corp Bd A Acc 52.91 0.54 383.33 1.08 UK/GBP
L&G Managed Monthly Income R Inc 51.96 0.53 52.96 1.2 UK/GBP
BlackRock Corporate Bond A Inc 51.74 0.93 121.05 1.08 UK/GBP
L&G Managed Income R Inc 51.71 0.51 299.14 0.93 UK/GBP
Legg Mason Global Blue Chip Bond A 51.61 0.88 37.26 1.36 UK/GBP
M&G Strategic Corporate Bond A Inc 49.52 0.66 4,214.32 1.16 UK/GBP
Source: Morningstar
29
Wealth Management
The Share Centre Limited is a member of the London Stock Exchange and is authorised and regulated by the
Financial Services Authority under reference 146768. The Share Centre, PO Box 2000, Aylesbury, Bucks, HP21 8ZB.
cut
your SA
fees
Our Self-select Funds ISA has no quarterly admin fee
If you want to invest your ISA allowance in funds, then this could be just what youre
looking for. We have over 1,800 funds for you to choose from, outstanding customer
service and you can apply online in a matter of minutes.
Whats more, well even cover the cost of transferring your ISA from another provider,
up to a maximum of 300 (conditions apply).
Please note that tax allowances depend on your individual circumstances, and ISA
benefits could change in the future. The value of investments and the income from
them can fall as well as rise, and you may not get back your original investment.
Find out more on 0845 61 85 252 or at share.com/funds-isa
Bury bonds in
tax-efficient
Isas to avoid
digging deep
The Sony PlayStation Vita (above),
the Wii U (right) the Samsung Galaxy S
2 (top left), the iPhone 4S (top middle)
and the iPad 2 (top right)
iPHONE 5
Expected: September
Price: Will depend on your contract
The year wouldnt be complete with-
out an update to the ubiquitous
iPhone. Critics may have whined
that the 4S wasnt enough of a
change from the previous model
but that hasnt stopped it selling
out across the world. One rumour
is that the iPhone 5 will respond
with a complete design overhaul,
with an ultra-thin aluminium
back and much svelter appearance.
A bigger screen has been
long-mooted and an innovative
display featuring round pixels
could be on its way. Basically, nobody
has the faintest idea what Apple
are planning.
crisper screen based on Apples
Retina Display, and access to Siri
voice recognition, as seen on the
iPhone 4S. One popular rumour is
that the iPad 3 will feature 3D capa-
bility, which is about as likely as it
coming with wheels and an engine.
SONY PLAYSTATION VITA
Expected: 24 February
Price: 280 with 3G
Sonys long-awaited portable console
is almost upon us. We now know it
features both a touch-screen (expect-
ed) and an innovative touch-sensitive
rear (similar to the one that failed to
materialise on the iPhone 4), mean-
ing you can control the system with
swipes of your finger without get-
ting in the way of the action. It has
two stick controllers as well as a D-
pad and all the trimmings of a high-
end smartphone, including GPS,
front and rear cameras and 3G capa-
bility. The software seems to borrow
heavily from Nintendos 3DS, with
cute bubbles and social games, seem-
ingly aimed at younger gamers.
WII U
Expected: Summer
Price: Somewhere around 400
Nintendo was the first manufacturer
to announce a new console as the
current crop reaches its natural sell-
by date. The Wii U is already contro-
versial, and we
still dont know the full
specs yet. It features an
innovative (or downright
bizarre, depending on where
you stand) tablet-come-con-
trol-pad that will function as
an extra screen while playing
with the console and a stand-
alone device when you are out
and about. Nintendo has won
people over on wacky ideas in
the past (the motion-sensitive
first generation Wii seemed out-
landish at the time) but it will
face a challenge to convince its
market that this is the future face
of gaming.
iPAD 3
Expected: Late Spring or Summer
Price: Probably near the 400 mark
Probably the most eagerly awaited of
this years gadgets is, inevitably,
made by Apple. The next generation
iPad is a case of when rather than
if. The question is, what can Apple
add to the last one? Expect a faster
processor (possibly a quad-core A6
chip), and better cameras front and
rear. Other racing certainties are a
Lifestyle | Technology
B
ouncing a ball against a wall is
fun. Doing it a hundred times is
still fun. But bouncing the same
ball against the same wall for
years on end can get a little repetitive.
Finding creative ways to dress up the
words Apple, record and profits is
like bouncing that ball. For a long time the
ball had Steve Jobs face on it. When Tim
Cooks appeared in its place, people dared
to think the ball might pop, or at least fly
off in an unexpected direction. Maybe
wed get to add a falls or drops or
tumbles or plummets into the mix.
This weeks results put paid to that. Apple
record profits. Bounce bounce bounce.
It regained its position as the world's
most valuable company after reporting
profits of $13.1bn (8.38bn) in the last
quarter more than double the same
period last year. It beat Wall Street esti-
mates by 30 per cent. It shifted 37m
iPhones in the last quarter alone one
for every adult in the UK.
Its margins are insane. Its quarterly
profits came from sales of just (albeit
very loose definition of the word just)
$46.3bn. To put this in context,
ExxonMobils $10.3bn third quarter prof-
its came from sales of $125.3bn.
Samsung may be vying with Apple for
smartphone dominance but the market is
growing to accommodate both of them,
rather than squeezing either. While the
UK and the US are coming close to matu-
rity (more than half of UK adults own a
smartphone, only slightly more than their
American cousins), fast-growing markets
like China are falling over themselves to
get hold of iPhones. Literally police had
to cordon off the Beijing Apple store over
safety fears, prompting enraged fanboys
to hurl eggs at it.
Its tablet business is even more aston-
ishing. In the last quarter Apple sold
more iPads than HP sold PCs.
This year were going to see new ver-
sions of the iPhone and iPad (see below),
inevitably fuelling another surge in sales.
Apple has barely dipped its toe in the TV
market but it has still cast a shadow over
the entire industry, with rumours of a
stand-alone set flying after comments in
Steve Jobs autobiography. If it can do to
the (somewhat stagnant) TV market
what it has done with phones and
tablets, we could be about to see some-
thing pretty special.
It looks like that ball is going to keep
bouncing for some time. My arm hurts.
GEEK SPEAK
@steve_dinneen
Please wake me up when Apple does something wrong
SAMSUNG GALAXY S 3
Expected: To coincide with the iPhone
Price: About the same as the iPhone
Samsung is the biggest smartphone
retailer in the world and the Galaxy
S II is vying with the iPhone for the
top-spot. Its next update is eagerly
awaited. The Android device will
run the latest version of Googles
Android operating system, Ice
Cream Sandwich and is likely to
feature a new, more powerful
processor, making it at least 25 per
cent faster. The rumour mill sug-
gests it will be released in time to go
head to head with the iPhone 5. If
anyone can steal Apples thunder,
its Samsung.
How well waste
our time this year
30
Steve Dinneen takes a look at the most eagerly
awaited up-and-coming gadgets, asking what
we can expect and when we might see them
T
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R
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S
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A
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EARTHFLIGHT
BBC1, 8PM
A birds-eye view of Asia and Australia,
featuring demoiselle cranes passing
the Himalayas and rainbow lorikeets
patrolling the Gold Coast.
THE RESTORATION MAN
CHANNEL4, 9PM
George Clarke helps a school bursar
and a teacher transform a derelict
Victorian brickworks in rural
Oxfordshire into a home for
themselves and their children.
WORLDS GREATEST DAREDEVILS
CHANNEL5, 8PM
Thrill-seekers who cheat death every
day, including white-water kayakers
and climbers, plus a man who
combines skiing and Base jumping.
BBC1
SKY SPORTS 1
8.25pmLive Copa Del Rey
Football 10.30pmCarling Cup
Special 11.25pmFootballs
Greatest 11.55pm-6amLive Test
Cricket
SKY SPORTS 2
7pmCarling Cup Special 8pm
The Rugby Club 9pmRingside
10pmTime of Our Lives 11pm
NFL: Total Access 12amRingside
1amCopa Del Rey Football
2.30amTime of Our Lives
3.30amCarling Cup Special
4.30am-5.30amRingside
SKY SPORTS 3
6pmEuropean Tour Golf 8pm
Live PGA Tour Golf 11pm
European Tour Golf 1am-4am
PGA Tour Golf
BRITISH EUROSPORT
6.30pmLive Africa Cup of
Nations 9pmFigure Skating
10pmPoker 11pmTennis:
Australian Open 12am-12.30am
Game, Set and Mats
ESPN
6.45pmPress Pass 2012 7.15pm
Goal! 7.45pmLive Coppa Italia:
AC Milan v Lazio (Kick-off
7.45pm). 9.45pmESPN Kicks:
Extra 10pmOff the Ball 10.30pm
Goal! 11pmGoal Show11.30pm
Press Pass 2012 12amFreestyle
FIS World Cup Magazine
12.30amNBA Action 1amLive
NBA Basketball 3.30amFIBA
Basketball 4amUFC Unleashed
5am-6amAMA Supercross
SKY LIVING
7pmCriminal Minds 8pm45
Stone Virgin: The Weight Is Over
9pmThe Biggest Loser 10pm
Unforgettable 11pmBones 12am
Criminal Minds 1amCSI: Crime
Scene Investigation 2.40amMy
Wife and Kids 3.30amBones
4.20amNothing to Declare
5.10am-6amJerry Springer
BBC THREE
7pmTop Gear 8pmJunior
Doctors: Your Life in Their Hands
9pmStrictly Soulmates 10pm
EastEnders 10.30pmRussell
Howards Good News 11pm
Family Guy 11.45pmAmerican
Dad! 12.30amStrictly Soulmates
1.30amJunior Doctors: Your Life
in Their Hands 2.30amRussell
Howards Good News 3amTwo
Pints of Lager and a Packet of
Crisps 3.30amHow Sex Works
4.30am-5.30amSun, Sex and
Suspicious Parents
E4
7pmHollyoaks 7.30pmHow I
Met Your Mother 8pmThe Big
Bang Theory 8.30pmRules of
Engagement 9pmHow I Met
Your Mother 9.30pmHappy
Endings 10pmNoel Fieldings
Luxury Comedy 10.30pm
Chris Moyles Quiz Night 11.20pm
The Big Bang Theory 12.20am
How I Met Your Mother
12.50amScrubs 1.45amNoel
Fieldings Luxury Comedy 2.10am
Chris Moyles Quiz Night 2.55am
Rules of Engagement 3.15am
Greek 4amWildfire
4.45am-6amSwitched
HISTORY
7pmMounted in Alaska 7.30pm
Pawn Stars 9pmIRT Deadliest
Roads: The Andes 10pmMud
Men 11pmPawn Stars 12amIRT
Deadliest Roads: The Andes 1am
Ice Road Truckers 2amMud Men
3amClash of the Gods 4amDeep
Sea Detectives 5am-6am
American Pickers
DISCOVERY
7pmMythbusters 8pmWheeler
Dealers 9pmIce Pilots 10pm
Britains Greatest Ships 11pm
Deadliest Catch 1amIce Pilots
2amBritains Greatest Ships 3am
Wheeler Dealers 3.50am
Mythbusters 4.40amChris
Barries Massive Speed
5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmSupernanny US 8pmJon
and Kate Plus 8 9pmI Didnt
Know I Was Pregnant 10pm
Surviving Death 11pmTrauma
Unit 12amI Didnt Know I Was
Pregnant 1amSurviving Death
2amTrauma Unit 3am
Supernanny US 4amA Baby
Story 5am-6amBringing Home
Baby
SKY1
8pmHawaii Five-0: A deep-sea
diver is found dead. 9pmMad
Dogs 10pmStella 11pmNCIS:
Los Angeles 12amDog the
Bounty Hunter 1amMy Holiday
Hostage Hell 1.50amFringe
2.40amRoad Wars 4.20am
Project Catwalk 5.10am-6am
Dont Forget the Lyrics
BBC2 ITV1 CHANNEL4 CHANNEL5
S
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E
L
L
I
T
E
&
C
A
B
L
E
TVPICK
6pmBBC News
6.20pmBBC London News
7pmThe One Show
7.30pmEastEnders: BBC News
8pmCHOICE Earthflight
9pmCrimewatch
10pmBBC News
10.25pmRegional News
10.35pmCrimewatch Update
10.45pmQuestion Time
11.45pmThis Week 12.30am
Skiing Weatherview12.35amSign
Zone: Train Fares: Taken for a Ride?
Panorama 1.05amSign Zone:
Countryfile 2.05amSign Zone:
Hairy Bikers Best of British
2.50amSign Zone: Britains Killer
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1 2 3 4 5
6 7
8 9
10
11 12 13 14
15 16 17 18 19
20
21 22
23
10 14
29 22
26 3
19 8 17
6 39
15
23 11
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9 11
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27 16
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28
28
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6
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42
10
18
11
19
7
12
18
33
4
15
4
12
Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Exactness (9)
8 Fine net used
for tutus (5)
9 Capital of Ghana (5)
10 Atmosphere (3)
11 Implied (5)
13 Rid of impurities (5)
15 Will (5)
18 Enchantress (5)
20 ___ Maria, prayer to
the Virgin Mary (3)
21 Terminate before
completion (5)
22 Leaves of a book (5)
23 Implanted device that
controls heartbeat (9)
DOWN
2 Historical object (5)
3 Deceive (5)
4 Acute (5)
5 ___ Wilde, dramatist (5)
6 Respected leader in
national or international
afairs (9)
7 Confused multitude
of things (5-4)
12 Ailing (3)
14 Israeli submachine-
gun (3)
16 Distinctive smell (5)
17 Espresso cofee
with milk (5)
18 Dark reddish-brown (5)
19 Knave (5)
I
O
R
L
T I
G
E
N

4

4
A B A S E C L O W N
M R V A C I
I N E X A C T A R T
S D E R R
S C O N E R A I S E
C N
M A T H S S C A L D
I O H E R
N A B A N I M A T E
E E V N S S
S P R E E E T H O S
3 4 7 9 2 9 3
1 2 5 6 1 5 2 4
3 9 7 6 8 4 9
9 8 2 1 7 1 3
8 6 7 9 5 3
3 1 2 8 1 3 2 7
5 7 6 9 4 8
2 1 3 9 5 1 9
9 5 8 7 1 1 3
8 2 7 1 6 8 5 9
3 9 2 8 9 6 7
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
ARTICHOKE
Lifestyle | TV&Games
CITYA.M. 26 JANUARY 2012 32
WHETHER it was by design or trig-
gered by unfortunate circumstance,
Englands change of tack in Abu
Dhabi may well prove to be the turn-
ing point in another tantalisingly
poised series involving Andrew
Strausss box office side.
Last minute U-turns based on
instinct are far from the modus
operandi of an England regime built
on meticulous preparation and stu-
dious analysis.
But the call to reinstate wild card
Monty Panesar, rather than select
Steven Finn as a ready made replace-
ment for the stricken Chris Tremlett,
dispelled the notion that head coach
Andy Flower had become too set in
his ways.
Panesar bowled with impressive
control in tandem with Graeme
Swann, as England were rewarded for
gambling on a four-man attack com-
prised of two seamers and two spin-
ners for the first time in nine years.
The 30-year-old, winning his 40th
Test cap and first since the summer
of 2009, displayed understandable
nerves early on and when, with a hint
of nostalgic familiarity, he dropped a
simple return catch off Mohammad
Hafeez in his eighth over, Flower
must have wondered whether he had
made the right call.
The Zimbabwean need not have
doubted his own judgement the
very next delivery saw Hafeez, who
had battled his way to 31, play back to
a quicker ball and lose his off bail.
Panesar bowled 33 overs and 15
more than Swann, who took 3-52 as
part of a tremendous all-round bowl-
ing effort which reduced Pakistan to
256-7, underlining the confidence his
captain had in his ability.
From my end there was a bit of
turn and we also had the right-hand
batsmen in, so the ball turning away
helped, left-armer Panesar
explained. Trying to get the right
pace for the wicket was the key. It is a
slow wicket, you dont want the bats-
men to be able to hang back and cut
you easily but you want to draw
them forward as well, so you have to
vary it and keep them guessing.
The history, albeit one limited to
two matches, of the Sheikh Zayed
Stadium suggested Englands bowlers
would be spending a considerable
chunk of this match out in the mid-
dle when Strauss lost the toss.
But after mastering the kookabur-
ra ball in Australia last winter, pace-
men James Anderson and Stuart
Broad enhanced their reputations as
men for all seasons by posing prob-
lems on a pitch already regarded as
something of a bowlers graveyard.
Broads hostility yielded figures of
3-23, while Anderson was unlucky to
end wicketless from 18 overs, but this
was by no means a return to the virtu-
ally fault-free cricket England show-
cased last summer.
Four chances went begging one
an inexplicable drop at slip by Strauss
off Anderson but undeniable
progress has been made since last
weeks horror show in Dubai.
Now it is up to Englands batsmen
to follow the template set by
Pakistans limpet-like skipper Misbah-
ul-Haq, unbeaten on 82 overnight,
and demonstrate that 10-wicket
defeat is fully out of their system.
Panesar gamble pays off as
England prosper in spin city
Sport
Results
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email sport@cityam.com
SPORT | IN BRIEF
McCoy poised for comeback
HORSE RACING: Tony McCoy will make
a return to the saddle this afternoon at
Warwick for the first time since 30
December when he fractured his ribs
and punctured a lung in a fall at
Taunton. McCoy, the 16-time champion
jockey, will ease his way back into action
by partnering Nicky Hendersons Key To
The West in the bumper. I would have
liked to have come back sooner, but I
wouldnt have been able to. I punctured
my lung and broke ribs and it was only
just over three weeks ago, he said.
Deng upbeat on Olympic chances
OLYMPICS: Chicago Bulls star and
Great Britain forward Luol Deng insists
he is determined to overcome a ligament
injury in his wrist in time this summers
London Games. It could always be
worse. Injuries happen, said the 6ft 9in
26-year-old. But Im very confident
that Ill be fine. And I feel like without
the surgery Ill be fine.
Hammers bid 7m for Jelavic
FOOTBALL: Championship leaders West
Ham have underlined their determina-
tion to make an instant return to the
Premier League by making a 7m bid
for Glasgow Rangers striker Nikica
Jelavic. The Croatia international, who
has scored 30 goals for Rangers, made
the switch to Glasgow from Rapid
Vienna in 2010 and is also being tracked
by Liverpool.
Wasps sign Russia duo
RUGBY UNION : Wasps have signed
Russia international hooker Vladislav
Korshunov and No8 Victor Gresev until
the end of the season.
Robinson stirs pot
for Calcutta Cup
SCOTLAND coach Andy Robinson has
fanned the flames ahead of next
weeks Six Nations opener by expand-
ing on his claim that England players
have been guilty of arrogance.
Former Red Rose boss Robinson,
whose side host holders England on 4
February, added spice to the Calcutta
Cup clash when he raised the issue
earlier this week.
The importance of what I stated is
there were two or three who I felt dis-
respected Scotland and other teams in
the way they conducted themselves,
he said yesterday.
[Ex-manager] Martin Johnson had
10 wins in 13 and I think it under-
mined him. You have to respect players
you play with and against. It was a
couple of people and for me it under-
mined what England had achieved. It
took many forms and it all builds up.
ENGLAND head coach Stuart
Lancaster insists his determination to
instil discipline in the squad will not
extend to banning wing Chris Ashton
from performing his trademark swal-
low dive.
Former Saxons boss Lancaster,
whose first match in charge is next
weeks Six Nations opener against
Scotland, has drilled his new charges
in the importance of showing respect
to the opposition.
Yet he has given Northampton star
Ashton (inset) the green light to con-
tinue performing a move that has
been depicted as showboating, so
long as he considers the situation
appropriate. I had a long conversa-
tion with Chris Ashton and he is des-
perate to play well for England, said
Lancaster.
We talked about behaviour and
right place, right time. Im not
going to ban swallow dives,
if thats what you are ask-
ing.
I think he and I had a
really good conversation
about what he wants to
get out of being an
England player, and I gave
him a pretty frank assess-
ment of what I thought
England players should do.
That didnt involve do or dont do
this. Its not about the swallow dive.
Its about everyones collective behav-
iour thats important.
While Lancaster did not explicitly
outlaw the swallow dive, however, he
did lace his words with a warning
that players who indulge in behav-
iour he sees as selfish or damaging to
the team will be dropped.
Youve got people who give
energy to a team and people
who take energy out of a
team, added Lancaster,
who has been placed in
charge until at least the
end of the championship.
An issue starts when
people take energy out of a
team through ego or irresponsi-
ble behaviour. If I think anything
falls sits in that bracket, and its all
contextual theres plenty of people
who want to play for England, and
thats the coachs prerogative in
terms of selecting the side.
Ashton gets swallow dive OK
BY FRANK DALLERES
RUGBY UNION
BY JAMES GOLDMAN
CRICKET
Lancaster wont stop wing performing trademark celebration

Panesar took 1-91 from 33 overs on his first Test appearance since 2009 Picture: GETTY
The Toss: Strauss calls wrong and
Misbah decides Pakistan will bat
first. Panesar replaces the injured
Tremlett for England
18.3 Overs: Taufeeq shoulders
arms to a quicker Swann delivery
and sees his off stump uprooted
23.5 Overs: Hafeez, like his open-
ing partner, misjudges an arm ball
and is clean bowled by Panesar
36.2 Overs: More stump carnage
as Broad gets one to sneak through
the defences of Younes, who was
playing horribly across the line
40.2 Overs: Broad homes in on
Alis timbers and the furniture of a
Pakistan batsmen is disturbed for a
fourth time
78.6 Overs: Shafiq aims to hit
Swann out of the ground and into
the surrouding desert. He looks far
from clever when given out LBW
on review
85.6 Overs: Akmal is sent packing
by Broad who traps him leg before.
The batsman appeared to get a
thin edge but the ball looped up to
wicketkeeper Matt Prior in any
case
92.1 Overs: Rehman becomes the
fifth Pakistani batsman of the day
to be clean bowled as Swann picks
up his third wicket
SECOND TEST
DAY 1: PAKISTAN 256-7
BRITAINS Andy Murray has vowed to
repair his faltering serve when he
seeks revenge over world No1 Novak
Djokovic in tomorrows Australian
Open semi-final.
Fourth seed Murray continued his
serene progress at the years first
grand slam with a 6-3, 6-3, 6-1 quarter-
final triumph over Japans Kei
Nishikori.
But the one-sided scoreline masked
a rustiness in the Scots game that
saw him succeed with just 44 per cent
of first serves and make three double
faults.
With Djokovic, the man who beat
him in last years final, ruthlessly
despatching another victim in fifth
seed David Ferrer yesterday, Murray
knows he must improve.
It was a good match, a lot of fun
points, but I need to serve better, he
said, after beating Nishikori.
I didnt serve particularly well but
the returning was good so that was a
positive. My games been getting bet-
ter each match, Im moving better
and Im feeling fresher
Murrays easy early rounds aided
him against Nishikori, the first
Japanese player to reach the
Melbourne last eight for 80 years,
who appeared to tire as the match
wore on. The 24th seed had been on
court four hours longer than Murray
before yesterdays meeting, and it
showed as his resistance waned the
closer his opponent got to a fifth suc-
cessive grand slam semi-final.
There he will meet Djokovic, after
the Serbs progress ensured they,
Roger Federer and Rafael Nadal the
mens tours big four will occupy
the last four places of a grand slam
for the third time in a year.
Djokovic defied physical impair-
ment to beat Ferrer 6-4, 7-6 (7-4), 6-1
and stay on course for a fourth grand
slam title in five attempts, having
seemingly hurt his hamstring and
suffered breathing problems. I felt
my nose was closed a little bit, he
said. I just wasnt able to get enough
oxygen.
Murray serves up semi-final
but finds fault with technique
Murray faces Djokovic in the Australian
Open semi-finals Picture: ACTION IMAGES
BY FRANK DALLERES
TENNIS
Sharapova fears
nemesis Kvitova
FOURTH seed Maria Sharapova
admits she is daunted by the prospect
of facing in-form Petra Kvitova, her
Wimbledon final conqueror, in the
Australian Open last four today.
Sharapova set up a semi-final
against second seed Kvitova with a
routine 6-2, 6-3 victory over Ekaterina
Makarova, who eliminated Serena
Williams earlier this week.
She said: Ive lost to her the last
couple of times, including obviously the
big one at Wimbledon where she
played really well. I think shes the one
to beat right now, she is playing the
best tennis of her career, coming off so
many wins last year.
Kvitova, who could rise to world
No1 status if she reaches the final,
struggled to find her best form as she
laboured past unseeded Italian Sara
Errani 6-4, 6-4.
Mancini allowed
Bellamy to join
Cardiff on loan from
City last season
Picture: GETTY
BY JAMES GOLDMAN
FOOTBALL
2
2
LIVERPOOL
MAN CITY
Sport
34
WEST London rivals QPR and Chelsea
have issued a joint warning to their
fans reminding them of a zero toler-
ance stance towards discriminatory
language ahead of Saturdays hotly
anticipated FA Cup fourth round clash
at Loftus Road.
Rangers defender Anton Ferdinand
is due to face Chelsea counterpart
John Terry for the first time since the
England skipper is alleged to have
made racially abusive comments to
him during the incident packed
Premier League clash between the two
sides last October.
Their likely encounter, which will
come four days before Terry is due to
appear at West London Magistrates
Court where he will deny a racially
aggravated public order offence, is
likely to make for a combustible
atmosphere and has prompted both
clubs to call for calm.
The statement from Tony
Fernandes, the QPR chairman, on
behalf of him and his Chelsea counter-
part Bruce Buck, said: We have dis-
cussed the issues surrounding this
weekends FA Cup fourth round tie at
Loftus Road and we are both in total
agreement that abuse and discrimina-
tion has no place in football or society.
Both clubs enjoy fantastic support.
However, we would remind fans that
while we want to hear their passion,
its a fact that hatred and abuse is not
what being a fan of QPR or Chelsea is
about.
The clubs will work together with
the police to ensure that anyone using
discriminatory or inflammatory lan-
guage is identified and that the
strongest possible action is taken.
Chelsea manager Andre Villas-Boas
last week insisted he would have no
qualms about selecting Terry this
weekend, while Rangers defender
Danny Gabbidon confirmed
Ferdinand is determined to feature.
Rivals QPR
and Chelsea
call for calm
BY JAMES GOLDMAN
FOOTBALL
Liverpool return to Wembley for the first time

since 1996 on a night when Anfield passion
extinguishes Manchester Citys Carling Cup hopes
Liverpool win 3-2 on aggregate
RED LETTER DAY
LIVERPOOL manager Kenny
Dalglish invited his Manchester
City counterpart Roberto Mancini
to give him a call if he fancies dis-
carding any more players of Craig
Bellamys calibre, after the
Welshman capped a scintillating
display with the goal that
ensured Liverpools place in next
months Carling Cup final.
That the Merseysiders are able
to celebrate a return to Wembley
for the first time since 1996 is
largely down to Bellamy, who
excelled against his former
employers and struck the decisive
goal 16 minutes from the end in
front of a delirious Kop.
Liverpools path to the final
was complicated by Nigel de
Jongs goal on the half hour, but
Steven Gerrards penalty five min-
utes before the break calmed the
jitters that resurfaced once Edin
Dzeko leveled the tie on aggregate
midway through the second
period.
The last word, however, went to
Bellamy, who was sent out on
loan by Mancini to Cardiff
Liverpools opponents at
Wembley next month last sea-
son and deemed surplus to
requirements in the summer.
Craig was unbelievable. If Man
City have anyone else like that
they dont want to keep, they
know where we are, said
Dalglish, who re-signed Bellamy
on a free back in August. Its fan-
tastic to have him here and hes a
great pro. He loves the club.
Gerrard, meanwhile, who was
delighted that a lifetimes ambi-
tion to skipper his boyhood club
at Wembley will, fitness permit-
ting, become a reality, agreed the
much travelled forward was
deserving of significant praise.
Craig was the difference, he
said. His pace was always a
threat and we know that if a
chance falls to him he can finish.
Its a big thanks to him.
Without striker Mario Balotelli,
who served the first match of a
four-game ban for violent conduct
after his club decided not to
appeal a Football Association
charge, took the lead through an
unlikely source when De Jongs
speculative 25-yarder curled up
and over Pepe Reina.
Joe Hart frustrated Liverpool
throughout but even he wasnt
able to get near Gerrards second
successful spot kick of the tie
shortly before the break.
Extra time looked on the cards
when the England goalkeepers
heroics were complemented by
Dzekos slick equaliser.
But a pulsating match was
denied the extra 30 minutes it
deserved when a slick inter-
change involving Dirk Kuyt and
Glen Johnson combined to pres-
ent Bellamy with a chance he was
never likely to pass up.
FORGOTTEN man Monty Panesar
announced his return to the interna-
tional fold after a two-and-a-half year
absence yesterday by helping to bowl
his side into a position of strength on
the first day of the second Test against
Pakistan and later admitted he
thought his England days were
behind him.
Panesar, representing his country
for the first time since the summer of
2009 at Test level, took 1-91 from 33
overs as Andrew Strausss side made
light of losing what appeared to be a
crucial toss, reducing the hosts to 256-
7 by the close.
Stuart Broad and Graeme Swann
took three wickets apiece, but it was
Panesars dismissal of
Taufeeq Umar which
provided the high-
light on the open-
ing day of a
match England
must win to retain
any hope of
claiming the
series.
W h e n
youre out of
the England
team you
wouldnt be
human if you
didnt wonder
if it was ever
going to hap-
pen again, but
these things do creep in and you do
need good people around you to help
you get through it, admitted Panesar.
There were times when self doubt
crept in, and you wonder is it ever
going to happen, and that is where
people like Mark Robinson [Sussex
coach] and Mushy [Mushtaq
Ahmed, England spin bowl-
ing coach] have been great
in protecting my self
belief.
It was good I didnt
find out on Tuesday
night [I was play-
ing] otherwise I
would have been
up all night
practising my
action in the
mirror. In a
sense I was making my second debut
having been out of the team for such
a long time.
Panesar earned his unlikely recall
after it emerged that seamer Chris
Tremletts (left) back injury was seri-
ous enough to rule him out of the
remainder of the tour and throw his
own England career into doubt.
The 30-year-old Surrey pacemans
progress has been regularly stunted
by a series of back complaints his
appearance in last weeks first Test
defeat in Dubai was his first for six
months.
Tremletts injury further reduces
Englands bowling options looking
ahead to the third Test with Tim
Bresnan already having flown home
early with an elbow injury.
FULL REVIEW OF DAY ONE: P33
Montys return tempers Tremlett blow
ENGLAND interim coach Stuart
Lancaster has confirmed his inten-
tion to apply for the job on a perma-
nent basis, but admits there is less
certainty over who will captain the
team during the Six Nations.
Lancaster, who was handed the
reins following the resignation of
Martin Johnson in November, faces
illustrious competition for the task of
leading England into a home World
Cup in four years time.
He has less than three weeks to for-
mally submit his CV to City head-
hunters Odgers Berndtson, who have
been hired by the Rugby Football
Union to carry out the search, but
insists he will definitely apply.
The job has been advertised. Its a
good job and I am sure there will be a
lot of interest worldwide and in
England, said Lancaster.
My hat will be in the ring. I love
working with teams and trying to
help players improve. The opportuni-
ty to do that at the highest level with
England is fantastic. I havent applied
yet but I will be before the 15th.
Former Italy coach Nick Mallett,
Northampton boss Jim Mallinder and
ex-New Zealand chief Wayne Smith
are among those tipped to be short-
listed for the job.
Lancasters immediate priority is
the Six Nations defence, which begins
next week, and he admits the captain-
cy issue remains undecided.
Flanker Tom Woods appearance as
nominal skipper at yesterdays tour-
nament launch suggests he is the pre-
ferred choice, but his current injury
means Harlequins Chris Robshaw is
likely to deputise for two Tests.
Yet Lancaster hinted that whoever
skippers the team in their opening
match against Scotland on 4 February
could be the first of many to don the
armband in the coming weeks.
There is a spread of players we
need to work with and from there a
leader will emerge that will represent
England as captain against Scotland,
added the 42-year-old, who cited
Dylan Hartley and Ben Youngs.
Will we appoint for the Six
Nations and through to South Africa
and beyond? I dont think you can do
that. I dont think selection or injury
allows you to do that. It is not a bad
thing to have two or three people who
can captain the side.
Lancaster: I
may rotate
captaincy
35
BY JAMES GOLDMAN
CRICKET
TOTTENHAM manager Harry

Redknapp told a reporter he had no
need to dodge tax for the sake of
30,000 and declared: Everything I
do, I do above board, a court heard
yesterday.
Redknapp said journalist Rob
Beasley was barking up the wrong
tree as he questioned him about pay-
ments totalling 189,400 to an off-
shore account in his dogs name, in a
tape recording of an interview played
to jurors.
The favourite to succeed England
head coach Fabio Capello also threat-
ened in the interview to sue Beasley
and the News of the World if they
printed claims that Redknapp had
failed to pay tax on the sums.
Beasley, now of the The Sun and
appearing as a witness for the prose-
cution on the third day of the high-
profile trial, told Southwark Crown
Court: Once it was published there
was not a single letter. Not a whisper.
Redknapp denies two charges of
tax evasion relating to the payments,
which he has said were legitimate
bonuses he was entitled to for selling
England forward Peter Crouch while
Portsmouth manager.
Milan Mandaric, the former
Portsmouth chairman and
Redknapps co-accused, who paid the
money into the 64-year-olds Monaco
HSBC account Rosie 47, also denies
wrongdoing.
In the telephone interview from
2009, the day before Redknapps
Tottenham were due to face
Manchester United in the Carling
Cup final, he was heard to ask
Beasley: Do me a favour. I tried to
nick 30,000 to save on income tax?
Do I need that Rob?
Redknapp, who told Beasley he
believed the money had been taxed in
America, where Mandarics payment
originated, added: Youre going to
write what you want to write and to
f*** me up on cup final day. I know
whats going to happen Rob and
youre all barking up the wrong tree.
Earlier the court heard how east
Londoner Redknapp, the most suc-
cessful current English manager, told
football corruption investigators that
he felt he was being persecuted for
his Cockney roots.
If there is any mud to be thrown, I
seem to get on the end of it for what-
ever reason. A friend said to me:
Harry, I cant believe its always you, I
have dealt with you enough times.
Your problem is your name, Harry,
and you have got a Cockney accent.
People dont know me and I am sick
and tired of it, Redknapp was said to
have told the Stevens Inquiry in 2006.
John Black QC, for the prosecution,
told jurors explanations put forward
by Redknapp and Mandaric were
contradictory, inconsistent and lack
credibility.
Former West Ham and
Southampton manager Redknapp is
accused of concealing his Rosie 47
account named after his pet dog
and the year of his birth from HM
Revenue and Customs until six years
after it was opened, in 2002. The pay-
ments, of 93,100 and 96,300, are
alleged to have been made between
April 2002 and November 2007.
The trial continues.
BY FRANK DALLERES
FOOTBALL
BY FRANK DALLERES
RUGBY UNION
Surrey pacemans tour-ending injury allows England spinner to thrive on Test comeback
Lancaster confirmed he wants the job on a
permanent basis Picture: ACTION IMAGES
I dont need to dodge tax
on 30k, Redknapp said
KEY MOMENT
Refereeing controversy appears to be fol-
lowing City around of late and they can jus-
tifiably feel aggrieved at the award of the
first half penalty which robbed them of the
momentum. Quite how Micah Richards was
supposed to prevent the ball hitting his arm
after he initially blocked Daniel Aggers
shot with his leg is anyones guess.
TALKING POINT
Roberto Mancini will win no sympathy for
complaining of a lack of squad depth, but
judging by Stefan Savics recent displays,
perhaps he should have shown a greater
interest in Gary Cahill. For Liverpool, a
night of celebration should also be met
with an acknowledgement that a Carling
Cup win would not alone represent a
sound return on over a 100m worth of
investment since Kenny Dalglishs return
this time last year.
GAME STATS
LIVERPOOL 2-2 MAN CITY
13 ATTEMPTS ON TARGET 6
3 ATTEMPTS OFF TARGET 2
12 CORNERS 2
44% POSSESSION 56%
2 YELLOW CARDS 1
0 RED CARDS 0
7 OFFSIDES 1
DUGOUT VIEW
I think it was not a penalty for
Liverpool and was for us. This changed
the game. Richard touched the ball on his
leg, for this reason it was not a penalty.
There is a referee on the pitch. It is
enough. It was a penalty on Dzeko for us,
incredible, clear. We did well, scored, we
made some mistakes and conceded a stu-
pid goal.
Man City boss Roberto Mancini
MATCH ANALYSIS
BY JAMES GOLDMAN
Redknapp denies two charges of tax evasion Picture: ACTION IMAGES
ONE SWALLOW (DIVE) DOES
NOT A SINNER MAKE
ASHTON GIVEN GREEN LIGHT TO
KEEP UP CELEBRATION: PAGE 33

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