Cityam 2012-09-11

employment, the RSA said.
Unsurprisingly, among respondents

with a desire to have their own busi-
ness, half were already self-employed.
A rising proportion of young people
are already in the early stages of
establishing their own business, the
report also said, citing figures from
the Royal Bank of Scotland.
A separate report, named the Global
Entrepreneurship Monitor, shows a
sharp spike in the proportion of 18-29
year olds who are becoming entrepre-
neurs up from around five per cent
in 2010, to over seven per cent in 2011.
Alice Barnard, chief executive of the
Peter Jones Foundation, which runs
the nationwide network of Peter
Jones Enterprise Academies, said:
There has been a fantastic surge in
the number of young people starting
up their own businesses over the past
year. This is in part due to the
advance in technology, making it eas-
ier for people to run businesses
remotely or from their home, with
potentially very low start-up costs.
However, enterprise education also
plays a crucial part. Young people are
increasingly turning to alternative
forms of education, as the traditional
system does not necessarily prepare
them for the 21st-century workplace.
Enterprise education teaches
young people practical skills and
offers real-life business experience,
equipping them with the skills, confi-
dence and ambition to start up on
their own.
The report admits that economic
uncertainty and job insecurity
encourages people to think about
self-employment, but says the results
are not solely due to the downturn.
Recessionary conditions which
lead to lower credit availability and
consumer demand damaged entre-
preneurial drive after 2008 in the
US, France and Germany, the report
says. although, interestingly, not in
the UK.
BUSINESS WITH
A NEW generation of entrepreneurs
will lift the UK out of its devastating
economic recession, according to a
report out this morning by a leading
educational society.
The proportion of surveyed twenty-
somethings who want to start their
own business rocketed from 17 per
cent in 1998 to 29 per cent in 2010,
the research shows.
Dubbing this new wave of aspira-
tional young adults Generation
Enterprise, the Royal Society for the
encouragement of Arts,
Manufactures and Commerce (RSA)
says the boom in business spirit is
partly due to technological advances.
It will be their insight and entre-
preneurial spirit which will finally
lift us out of the dire economic crisis,
the RSAs Adam Lent said.
Over the coming years we will see
younger generations produce new
products and services that will gen-
erate a big leap in living standards.
www.cityam.com
The proportion of people actively
expecting to start their own business
has also jumped, according to the
National Centre for Social Research,
which helped compile the data.
In 1998, just four per cent of 20-29
year olds planned to start a business
in the 12 months after being asked
the question. Yet by 2010, around
seven per cent of respondents in their
20s said they would start a business
in the coming year.
The expectation to start a business
in the near future was highest among
people living on their own, with one
in 10 making such plans.
The figures only include people
already in employment, or self-
FTSE 100 M5,793.20 -1.60 DOW M13,254.29 -52.35 NASDAQM3,104.02 -32.40 /$ 1.60 unc / 1.25 unc /$ 1.28 unc
BY JULIAN HARRIS
GENERATION
ISSUE 1,714 TUESDAY 11 SEPTEMBER 2012
ALLISTER HEATH: Page 2

Certified Distribution
02/07/12 til 29/07/12 is 131,194
Britains youth are turning to entrepreneurship to beat the recession
YOUNG PEOPLE INCREASINGLY WANT TO START THEIR OWN BUSINESS YOUNG PEOPLE INCREASINGLY WANT TO START THEIR OWN BUSINESS
20-29
YEARS OLD
% by age group who want to start their own business
Source: RSA
30-39
YEARS OLD
40-49
YEARS OLD
50-59
YEARS OLD
60+
YEARS OLD
2010
1998
29
17
25
15
21
13
15
9
7
4
OURGREATESTTEAM
PERSONALITY
ONE MILLION LONDONERS CHEER OLYMPIC HEROES See Page 20-21
E
FREE
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
IN BRIEF
Chinese vice president disappears
nXi Jinping, widely seen as Chinas
leader-in-waiting, has mysteriously
disappeared, just weeks before the
18th Communist Party congress,
where President Hu Jintao and
Premier Wen Jiabao will step down.
He was last seen in public on 1
September, but has cancelled at least
four meetings since then, sparking a
flurry of speculation over his
whereabouts.
Rise in labour disputes
nGovernment measures that
encourage public bodies to transfer
jobs to private sector providers have
led to a substantial rise in the number
of costly employment tribunals, a law
firm said yesterday. Tribunals relating
to TUPE regulations which ensure
workers retain existing benefits if their
jobs are transferred to a new employer
increased by 37 per cent to 2,600
between in 2011/12. Local authorities
are being urged to cut their budgets
wherever they can and one way to do
that is to shift services out into the
private sector, Jon Taylor, head of
employment law at EMW, told City
A.M.
Huawei to put 1.2bn into UK
nChinese telecoms giant Huawei is
planning to invest some 1.2bn into
the UK, creating at least 700 jobs on
the way. Huawei, which is privately
owned by its employees, a rarity in
China, will invest around 600m
directly and spend about 600m on
procurement related to the
investment, Sky News reported.
BUSINESS secretary Vince Cable
will today outline plans for a gov-
ernment-backed corporate lender,
as part of his attempt to reignite
the coalitions support for British
industry.
Cable will say in a speech at
Imperial College that the smaller
challenger banks such as Co-
operative and Aldermore could be
employed to operate the new busi-
ness bank, though the final model
and scale is yet to be decided.
He is expected to rail against the
current lending landscape for
smaller firms, claiming that a
third of businesses that applied for
a loan in the last year were reject-
ed.
The Lib Dem will also sketch out
measures to help the British car,
aerospace and life science sectors
compete globally though he has
insisted in the past week that his
new industrial strategy is not
picking winners.
He is also expected to give an
update on the coalitions attempts
to foster research and develop-
ment, fund more apprentices and
use small companies in govern-
ment procurement.
Cables industry plans come as
businesses welcomed his strong
Risky groups face outsourcing ban
The performance of troubled Olympics
contractor G4S will be reviewed very
carefully, the Cabinet Office has warned, in
a shake-up of outsourcing contracts across
government that has already seen two IT
companies struck off its list for future
tenders. The departments decision to look
at G4Ss record comes as Nick Buckles, chief
executive, is due to appear before the
Commons home affairs committee on
Tuesday to explain why the private
contractor failed to provide a promised
10,400 venue guards for the Olympics.
Tories broker 4G peace talks deal
A peace deal between the UKs mobile
operators has been brokered by the
government that will smooth the way for
next-generation 4G mobile broadband
services to be launched after years of delay.
IMF urges EU to invest in Irish banks
The International Monetary Fund has
boosted Irelands campaign to win relief on
its 64bn banking debt by urging
European authorities to use a new bailout
fund to make direct investments in the
countrys lenders.
Eastern Bloc feels the chill
The new head of the European Bank for
Reconstruction and Development has called
for co-ordinated intervention in Eastern
Europe, where he said the euro crisis was
having a frightening impact on growth.
Winners wont take it all in JJB sale
Rivals are circling JJB Sports in the hope of
taking control of the sportswear chains
best stores. KPMG is running an accelerated
sales process for JJB, whose shares are
languishing at a fraction of a penny.
PM to meet supermarket chiefs
The Prime Minister David Cameron is to
meet the leaders of the UK largest
supermarkets to discuss ways the industry
can help tackle youth unemployment.
HSBC sells Pakistan arm
Banking giant HSBC has agreed to sell its
operations in Pakistan comprising 10
branches to the Asian country's JS Bank for
an undisclosed sum. The British lender said
the sale represented further progress in its
strategy to slash group costs, AFP reported.
Corporate bonds $19bn day
Drugstore chain Walgreen led 14
companies to sell nearly $19bn worth of
debt, making yesterday the biggest day
for investment-grade bond issuance since
September.
Pirate Bay co-founder goes home
Gottfrid Svartholm Warg, a co-founder of
The Pirate Bay, has left Cambodia and is
being transported to Sweden, a
spokesperson at Swedens foreign
ministry said yesterday.
Business secretary Vince Cable wants a government-backed corporate lender
2
NEWS
BY JAMES WATERSON AND
MARION DAKERS
To contact the newsdesk email news@cityam.com
G
LASSES can be half-empty but
they can also be half-full. Amid
all the gloom, and the latest
useless proposals for an
industrial policy from Vince Cable,
the business secretary, here are, for
once, three reasons for moderate
optimism about the state of our post-
Olympic nation.
The first is that the UK has become a
little less uncompetitive. The Centre
for Policy Studies has tallied the num-
bers. On the World Economic Forum
measure of competitiveness, Britain
fell from 7th to 12th during the
Labour years; it is now back up to
eighth under the coalition. On the
World Competitiveness Yearbook
measure, we slumped from 9th to
22nd during the Labour years; we are
now back up to 18th. The Index of
World Economic Freedom registered
a slump from 5th to 16th during the
EDITORS
LETTER
ALLISTER HEATH
Three reasons why the UK economy will eventually improve
TUESDAY 11 SEPTEMBER 2012
Labour years; we have since climbed
back to 14th place. None of this is
especially exciting. But the trend is
undeniable, even if in most cases the
explanation may be that others have
done more to mess up their
economies with inane taxes or count-
er-productive red tape than we have.
But there have also been a few helpful
reforms from the coalition, hopefully
with more to come. There is only one
industrial policy worth pursuing:
making the UK a better place to con-
duct business, regardless of sector.
The second piece of progress is that
there has been a slight improvement
in some recent economic indicators.
It is far too soon to know how signifi-
cant these will be. They may even
have zero impact. But the services sec-
tor purchasing managers index has
gone up, its manufacturing counter-
part is shrinking by less, exports are
increasing again, real wages are
falling at a slower rate and the hous-
ing market seems roughly stable.
Last but not least, the individualis-
tic, aspirational cultural revolution
started by Margaret Thatcher in the
1980s continues to gain ground;
when it comes to employment at
least, collectivism is in terminal
decline. The proportion of twenty-
somethings who want to start their
own business is up from 17 per cent
in 1998 to a record 29 per cent in
where the action now clearly is.
Michael Feroli of JP Morgan believes
the release of Apples iPhone 5 could
single-handedly add 0.25-0.5 percent-
age points to fourth quarter US annu-
alised GDP growth. He believes 8m
units will be sold in the US in the last
three months of the year, for around
$600, of which $200 would be an addi-
tion to imports (which reduce GDP),
leaving $400 as a trade margin. The
iPhone 5 could thus boost US GDP by
$3.2bn, or $12.8bn at an annualised
rate (which is the way US stats are
always presented), roughly 0.33 per-
centage points. Given that the US is
expected to grow by an annualised 2
per cent in the fourth quarter, Apples
latest gadget could make a huge dif-
ference. Truly astonishing.
2010, according to the Royal Society
for the encouragement of Arts,
Manufactures and Commerce (RSA).
For people in their thirties, the rate
has jumped to 25 per cent, from 15
per cent; for those in their forties, its
21 per cent, up from 13 per cent. In
1998, just four per cent of 20-29 year
olds planned to start a business over
the following year; the rate is now
seven per cent and 10 per cent for sin-
gletons. Generation Enterprise, as the
RSA calls it, is Britains best hope for a
return to prosperity.
APPLES ECONOMIC ELIXIR
ONE of the best arguments against an
industrial policy is that no expert
can accurately predict the future.
Take telephony. Everybody used to
think that companies that specialised
in mobile voice calls would create the
value yet making fancy handsets is
words on cutting corporate red tape.
Katja Hall, the CBIs chief policy
director, said the decision to exempt
hundreds of thousands of low-risk
workplaces from health and safety
inspections makes obvious sense
as they are disproportionately cost-
ly for smaller firms.
Her claims were echoed in a survey
by Zurich Insurance that found 70
per cent of small and medium sized
businesses thought cutting red tape
was important to their businesses
substantially more than had con-
cerns about accessing finance.
The TUCs Brendan Barber criti-
cised the move, however, arguing:
Health and safety regulation is not
a burden on business, it is a basic
protection for workers.
According to Ben Posford of law
firm Prolegal there is also the
prospect of a legal challenge to the
governments attempts to fast-track
the reforms.
It is likely to be very difficult for
the government to make any major
changes without risking a challenge
to the European Court of Justice, he
said.
The new jobs website for London professionals
CITYAMCAREERS.com
WHAT THE OTHER PAPERS SAY THIS MORNING
n BUSINESS BANK
Business secretary Vince Cable will
today announce that he is looking to set
up a government-backed lender for
firms that find it difficult to obtain
funding in the private sector. The scale
and model are yet to be decided, but it
could operate through one of the
smaller challenger banks or non-bank
lenders.
n BACKING FOR INDUSTRIES
Cable singles out the car, science and
aerospace sectors as fertile grounds for
long-term government support in the
global market. His department will also
examine ways the state can help
nuclear, oil and agriculture firms
compete.
n TECH SUPPORT
The minister wants the coalition to do
more to support capital-intensive
research and development, and will set
out plans for a synthetic biology
innovation centre.
n APPRENTICES
The first bids are in for around 67m of
funding for vocational training, with 34
companies vying for investment that
could create up to 11,000 new
apprenticeships, Cable will announce.
n PROCUREMENT
Cable will report back on the
governments push to procure more
services from Britains smaller
companies, and outline the next step in
these reforms.
CABLES WISH LIST
Cable plans public bank
to offer business loans
THE OFFICE of Fair Trading has
tripled the amount it can fine busi-
nesses found breaching competi-
tion law, the watchdog said
yesterday.
The OFT can now impose a penal-
ty of up to 30 per cent of a firms
relevant turnover in standard
cases, up from 10 per cent, as it
tries to move on from a string of
climbdowns over fine amounts.
In April, the OFT cut in half
British Airways penalty for coordi-
nating fuel surcharges from a
record 121.5m, citing the airlines
cooperation and subsequent
changes to competition law.
Criminal proceedings against BA
executives were dropped in May
2010.
And last December, tobacco sell-
ers including Imperial won a court
battle to overturn charges totalling
225m.
OFT is currently probing competi-
tion within the UK petrol market
Office of Fair
Trading sets
tougher fines
BY MARION DAKERS and private healthcare.
Under the new rules, severe fines
will be slapped on firms that com-
mit the most serious infringe-
ments of competition law,
including hardcore cartel activity
and the most serious abuses of a
dominant position.
OFT fines will remain below 10
per cent of a firms global turnover.
The watchdog will also for the first
time look at whether a fine is pro-
portionate to the competition viola-
tion, and formally set out how
discounts for early settlements and
mitigating circumstances are
applied.
Lawyers said the rule changes give
welcome clarity to business, but
warned that some areas remain
uncertain.
Guidance on the OFTs approach
to early resolution and settlements
is overdue, and the lack of guidance
should be addressed at the earliest
opportunity, said Hogan Lovells
competition lawyer Christopher
Hutton.
Jenkins comes from Barclays retail bank but vows to keep the investment bank strong
3
NEWS
cityam.com
New Barclays boss Jenkins vows
to review every unit in the bank
NEW BARCLAYS boss Antony
Jenkins yesterday committed
himself to keeping the universal
banking model and maintaining a
strong investment bank, but told
analysts that every individual unit
would need to prove its worth or
could be scrapped.
His tough review of the banks
operations will be granular and
comprehensive and will see units
without a sustainable long-term
future dropped or reformed, he told
analysts after speaking in New York.
BY TIM WALLACE
This should differ from previous
reviews both because the bank has a
clearer idea of incoming regulations,
and because it is applying a new
ethical filter to make sure the bank
focuses on all stakeholders, from
employees and shareholders to the
public, Jenkins explained.
Some lines of business are more
controversial for example
proprietary trading has received a lot
of coverage, he said.
Do not infer any comment on our
future decisions from that, but it is
an area of reputational scrutiny.
Investment banking boss Rich
Ricci added that the tax planning
arm could be one of those closed for
reputational reasons.
Barclays PLC
10Sep 4Sep 5Sep 6Sep 7Sep
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10Sep
GERMAN Chancellor Angela
Merkel and Olli Rehn, the Finnish
European Central Bank (ECB)
policymaker, appear to be
softening on ECB president Mario
Draghis bond-buying plan,
making the scheme more likely to
go ahead.
Der Spiegel claimed yesterday
that Merkel has switched from
the chain theory, in which Greek
is seen as a weak link which can
be removed for a stronger
Eurozone, to the domino theory,
where a Greek collapse could be
contagious.
And top ECB economist Olli
Rehn told CNBC that the
[currency] is irreversible and it is
essential that we...maintain the
unity of the euro.
Merkel and Rehn are warming
to ECBs bond-buying scheme
BY BEN SOUTHWOOD This apparent change of heart
from two former opponents will
make bond-buying more likely,
regardless of tomorrows verdict
on the European Stability
Mechanism from Germanys
constitutional court.
Meanwhile the Greek
government, under Prime
Minister Antonis Samaras, tried
to haggle out a package of cuts
with the troika, which is made up
of inspectors from the IMF, the
EU and the ECB.
There have been sticking points
over various austerity measures,
such as cuts to public employees
salaries and state pensions.
But there was optimism from
Italian leader Mario Monti, who
told CNBC that his country will
return to growth next year as
interest rates decline.
MARKETS have yet to recover from
Standard Chartereds Iranian
sanction-breaking scandal, and so
are failing to recognise the banks
underlying strengths, analysts from
Investec said yesterday.
Although the banks share price
has recovered roughly 30 per cent in
the last month, it is still feeling the
effects of US regulatory action even
though the worst of that appears to
be past, according to analyst Ian
Gordon.
Surprise accusations that the bank
had broken sanctions in $250bn
(156bn) of transactions with Iran
led to Standard Chartered paying the
New York state Department of
Financial Services $340m.
That settlement did not allocate
blame the bank insists it only
broke the rules on $14m of
transactions but was instead aimed
at putting an end to the claims that
were damaging the banks
reputation.
But Investec believes markets have
not fully recognised that the claims
and settlement are now largely in
the past.
Lest we forget, on 1 August
Standard Chartered delivered
another excellent set of results a
10th year of record first-half
revenues and profits led by stand-out
performances in trade and cash
management, said Gordon.
StanChart has
a silver lining
says Investec
BY TIM WALLACE
CUTTING European jobs and trim-
ming down the equities business
should help Japanese bank Nomura
back on the path to stable profits in
the long run, credit ratings agency
Moodys said yesterday.
Last week the bank announced the
plans, which will see it cut back on
equities and investment banking as
part of a $1bn (625m) savings pro-
gramme being implemented over
the next two years.
The focus on removing unprof-
itable parts of the bank represents a
credit-positive first step that
attempts to address the build up in
Nomuras cost base that resulted
from its badly timed acquisition of
Lehman Brothers businesses in
Europe and Asia in 2008, said
Moodys.
However, the agency did warn the
bank still faced tough challenges, not
least because this is the second $1bn
cost cutting programme in two
years.
The bank wants to hit a pre-tax
profit of 250bn (2bn) in 2015-16, up
Moodys hails
Nomuras $1bn
European cuts
BY TIM WALLACE
from 85bn in 2011-12, both by cut-
ting back on poorly performing units
and boosting profits in wholesale
banking and the Japanese retail busi-
ness.
Given the weak environment for
global capital markets and also the
low growth in the Japanese retail
market, we think these targets will be
difficult to achieve, warned Moodys.
However it did add Nomura is less
likely than global competitors to
increase risks in order to meet diffi-
cult profit targets because it faces less
shareholder pressure than competi-
tors to meet its targets.
Nomura Holdings Inc
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JPY
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10Sep
TOP CENTRAL bankers from
around the world yesterday
announced plans to set up a new
committee to study key market
lending rate Libor.
The policymakers regularly
meet in Basel to discuss matters
of mutual importance, including
the Libor-rigging scandal, which
has seen investigations launched
into several major banks.
The Bank of International
Settlement governors have
agreed to set up a group of
senior officials to take forward
examination of these issues, and
Central bankers set up a new
committee to study Libor crisis
BY TIM WALLACE to consult with the market in
order to provide input into the
wider official debate coordinated
by the Financial Stability Board,
said Bank of England boss Sir
Mervyn King.
Meanwhile the Global
Financial Markets Association
(GFMA) called for Libor and
other key market interest rates
to be overseen by regulators,
calling for the authorities to
enforce their proposed best
practice code of conduct on the
industry.
In particular, the GFMA
favours greater transparency in
establishing the rates.
4
NEWS
cityam.com
Mervyn King and other governors in Basel welcomed the Wheatley review into Libor
AN EXCESSIVELY complicated and
fragmented series of overlapping
regulations are damaging the
investment industry and hitting
savers returns, the Investment
Management Association (IMA)
warned yesterday.
The industry is becoming less
efficient as governments fail to
coordinate their regulations, and in
some cases take a more protectionist
stance, the IMAs study claimed.
In particular it uncovered
concerns over the extra-territorial
nature on the US Foreign Account
Tax Compliance Act, as well as the
Alternative Investment Fund
Managers Directive.
Some new regulations will affect
even those with only very indirect
connections to countries where the
rules originate, the IMA said.
In addition to operational
complexity, such wide reaching
change could hinder fair access to
global markets and investment
opportunities, reducing investor
choice and returns.
Chaotic global
red tape hurts
savings firms
BY TIM WALLACE
CVC Capital Partners, the private
equity firm, is preparing to crys-
tallise a multi-billion loss on its
investment in Australian media
giant Nine Entertainment Company,
as it mulls a debt for equity swap to
pacify the companys creditors.
CVC, which owns Nines entire
portfolio of TV stations and maga-
zines, paid A$5.3bn (3.4bn) through
its private equity vehicles for the
firm in 2006. Since then however,
the firm has struggled and racked up
debts of A$2.7bn.
With senior debt due to mature in
February 2013, and mezzanine debt
in 2014, CVC is now hatching plans to
strike a deal with lenders including
CVC mulls debt
for equity deal
on Nine TV loss
BY MICHAEL BOW
Goldman Sachs, Apollo Global
Management and Oaktree Capital
Group to give control of the group
to the lending constituents. The plan
would see senior creditors receive 70
per cent of CVCs equity with mezza-
nine debt holders taking 30 per cent.
Under the plan, senior lenders are
expected to end up with 70 per cent
equity in Nine, with the remaining
30 per cent going to Goldman Sachs.
About 80 per cent of the senior debt
is in the hands of rival private equity
firms and hedge funds, which bought
the debt from original bank lenders
on the secondary market.
Apollo and Oaktree own about
A$1bn of the debt and hedge funds
including Och-Ziff Capital
Management another A$1bn.
Branson rails at MPs over First
Group win for West Coast line
FIRST Group chief executive Tim
OToole yesterday hit back at
Richard Bransons Virgin Trains,
telling MPs that his rival was flat
out wrong to claim First could
not achieve continued revenue
growth on the West Coast Main
Line.
Contrary to Virgins depiction
of their stewardship in recent
years, since theyve been in
revenue support, theyve had little
incentive to grow revenue on this
line, OToole told the Transport
Select Committee.
We think the problem is that
they dont understand our model,
because they havent seen it.
Appearing at the same meeting,
BY JAMES WATERSON
Branson maintained that the
outcome of the bidding process
which saw First win the rights to
run trains from London to
Manchester and Glasgow was
bad for the country, bad for
passengers on the West
Coast Main Line and
bad for passengers on
other franchises.
He said the
Department for
Transport did not
consider the
deliverability of
Firsts offer
when they
selected a
preposterous bid that promises
higher cash payments.
Virgin Trains has requested a
judicial review of the decision,
which could throw the entire rail
franchising system into a disarray.
A judge is expected to decide soon
whether the request will be
granted.
But OToole said First would
suffer irreparable damage if it
failed to meet its promises: I
dont think there is any chance of
our handing back the keys. It
would destroy our ability to run
a rail business in this
country.
Kweku Adoboli, the former UBS trader arrested last year, went on trial yesterday at
Southwark Crown Court. Jurors were selected by judge Brian Keith, who told them to
ignore media coverage. The prosecutions case will be set out by Sasha Wass on Friday,
and the trial is expected to last about two months.
FORMER UBS TRADER IN COURT
Branson said First Groups
bid was literally taking the
system for a ride
RED TAPE DEBATE: Page 27

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cityam.com
The new
jobs website
for London
professionals
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NASDAQ yesterday vowed to stand by
it $62m (39m) compensation plan
for firms harmed by a glitch in
Facebooks market debut and defend
itself against any related lawsuits.
The news came as Facebook co-
founder Dustin Moskovitz
hampered the firms share price
further by selling off more than
$108m-worth of stock.
Lee Shavel, Nasdaqs chief
financial officer, spoke out in
defence of the plan, which was filed
with regulators in July, and said the
firm has robust legal and factual
defences against litigation.
Clearly there are differences of
opinion, and some are more
negative on the proposal, Shavel
said at the Barclays Global Financial
Services Conference in New York.
We continue to believe ... that
this addresses the issues that we
identified in a very fair, reasonable,
and objective manner.
Facebooks eagerly anticipated
IPO, which raised $16bn, was
initially delayed by 30 minutes due
to a technical glitch at Nasdaq.
Nasdaq vows
to stand by its
Facebook plan
BY JENNY FORSYTH
JAPAN Airlines, the carrier nation-
alised by the Japanese government in
2010, yesterday secured top price for
its initial public offering, making it
the second biggest float of the year
after Facebook.
The offering, which was six times
oversubscribed by investors, was
priced at 3,790 (30.24), the upper
limit of a range between 3,500 and
3,790.
The float values the company at
$8.49bn, the second biggest float of
the year after Facebooks $16bn list-
ing on the Nasdaq in May and the
biggest this year on Asian markets.
Under the terms of the offering, a
quarter of shares have been bought
by international buyers such as big
UK institutional investors, with the
Japan Airlines
raises $8.5bn in
top Asian float
BY MICHAEL BOW
rest distributed domestically among
Japanese investors.
The book closed on Friday and
shares will start trading on the Tokyo
Stock Exchange on Wednesday 19
September.
Japan Airlines went bust in 2010
with debts of $25bn. The government
came to the rescue, buying a 96.5 per
cent stake through its the Enterprise
Turnaround Initiative Corporation of
Japan vehicle to keep the company
alive.
The selloff gives the Japanese gov-
ernment which by law had to sell
the company by the end of the year a
substantial premium on the 350bn it
originally ploughed into the firm.
In June, the firm posted a 12.5 per
cent surge in its operating revenues in
its full year results, increasing it to
286.7bn.
The main global co-ordinator for the
Japan Airlines float was Daiwa Securities,
which handled both the domestic
Japanese and international offering to
investors.
Leading on the float for clients in Europe
and Middle East was the head of Daiwa
Securities Equity Capital Markets division
in London, Shuntaro Nagashima.
Shuntaro previously worked in Daiwas
Tokyo and New York office before trans-
ferring to London and becoming head of
the firms Equity Capital Markets business.
Nagashima worked on a number of debt
deals in the ECM role, the biggest deal to
date being the 200bn convertible bond
offering from mobile operator KDDI in
2011. Also playing a smaller role for over-
seas investors in the Japan Airlines float
was Morgan Stanley and Merrill Lynch.
ADVISERS DAIWA SECURITIES
SHUNTARO
NAGASHIMA
DAIWA SECURITIES
8
NEWS
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TOP FIVE GLOBAL IPOs 2012
Company Exchange Share price Value
Facebook Nasdaq $38 $16bn
Japan Airlines Tokyo $48.55 $8.5bn
Felda Kuala Lumpur $1.46 $2.1bn
IHH Healthcare Kuala Lumpur $0.92 $2bn
BTG Pactual Bovespa $15.4 $1.96bn
Japan Airlines Fact File:
Chief executive: Kazuo Inamori
Stake: 96.5 per cent
IPO price: $48.55 (3,790 yen)
Price to earning ratio: 5.3
Company value: $8.49bn
Owner: Enterprise Turnaround Initiative
BLACKROCK chief executive Larry
Fink yesterday announced plans to
lower fees on some of its iShares
Exchange Traded Fund products with
a strategy change this autumn.
Speaking at the Barclays Global
Financial Services Conference in New
York, Fink said growing competition
in the ETF sector meant the firm was
going to unveil a new strategy in the
fourth quarter of this year.
There are a number of products
where the competition is accelerating
their sales numbers versus ours and
we are going to address that on those
few products, Fink said
We expect to be announcing a
whole new strategy and how we are
addressing the fee issue related to
these large, liquid, core types of ETFs.
Were going to be addressing that in
the next quarter, probably the early
part of the fourth quarter, he added.
BlackRock currently has 39 per cent
market share of ETF assets under
management through its iShares
platform.
Fink also told delegates the growth
of fixed income ETFs was going to
transform the market in the years
to come.
We see huge growth opportunities
in fixed income ETFs, Fink said.
Around 66 per cent of BlackRocks
revenues comes from its retail and
iShares business. Global ETF assets
have grown 21 per cent since 2008.
BlackRocks
Fink pledges
lower ETF fees
BY MICHAEL BOW
SHARES in American International
Group, the insurer bailed out by the
US government in 2008, dipped yes-
terday after the US Treasury
announced it was selling a $18bn
(11.2bn) stake back to the market.
The US Treasurys public offering,
announced by AIG yesterday, will cut
its ownership from 53 per cent to
around 20 per cent giving it minor-
ity shareholder status for the first
time.
The US government was forced to
cough up $180bn to bail out the
insurance group and take a 92 per
cent stake during the 2008 financial
crisis.
The public offering of AIG common
stock is priced at $2.50 a share. AIG
has announced it will purchase up to
$5bn of the stock itself with the
remaining $13bn allocated to other
investors.
An additional $2.7bn of stock has
also been released by the Treasury to
the deals underwriters to cover over-
allotment of shares.
The move to lower the Treasurys
US shrinks its
AIG stake with
$18bn sell-off
BY MICHAEL BOW
holding below 50 per cent also means
AIG will now be regulated by the
Federal Reserve as a savings and loan
holding company. This means mini-
mum leverage and risk-based capital
requirements will be imposed on the
firm.
Shares dipped two per cent yester-
day on the back of the announce-
ment.
The US Treasury has slowly rolled
back its holding in AIG since 2008
when it saved the firm through its
Troubled Asset Relief Program (TARP).
It originally reduced its stake to 77
per cent in May 2011 when it sold off
$5.8bn, leaving it with a $41bn stake.
AIG chief executive Robert Benmosche will see $18bn in shares back on the market
Recovering taxpayer money on
a bailout boosts moral hazard
T
HE White House says the AIG
shares sale demonstrates its
commitment to recover
taxpayer money. But not, one
cant help noting, to return it to
actual taxpayers. And announcing
the sale of $18bn of shares at once
doesnt sound like all that much of
a commitment to selling at a great
price. Still, the American
government thinks the figures
have recovered enough for it to
start turning a profit on its original
stake, which is probably more than
anyone could have hoped for.
AIG shares have traded up from
their 2009 nadir, but its share price
still remains far, far lower than it
was for much of the 2000s. Then
again, the idea that a company
with the government as a majority
shareholder was ever going to roar
to new heights of value was never a
promising one. At least this new
deal will loosen the leash on AIG
somewhat. But a Treasury that
suddenly finds itself coming out on
top of a bailout deal is a dangerous
thing. It might start to think that
its worth making it a habit.
BOTTOM
LINE
MARC SIDWELL
American International Group Inc
34.00
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$
33.30
10Sep
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NEWS
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IT ALL ENDS HERE
DIXONS Retail yesterday launched a
tender offer to buy back half of the
160m bonds it is due to repay in
November, giving investors a further
sign of confidence over its financial
position.
The electronics retailer, which
earlier this week reported robust
quarterly results, is offering to buy
back 80m of its outstanding 6.125
per cent guaranteed bonds due on
15 November and 50m of its
outstanding 150m 8.75 per cent
guaranteed notes due 2015.
It also announced plans to issue
new notes with a 2017 maturity.
Dixons begins
bond buyback
BY KASMIRA JEFFORD
PRIMARK owner Associated British
Foods said it is set to enjoy a jump
in full year profits thanks to a
strong performance at the groups
discount fashion retailer, which
continued to strike a chord with
cash-strapped shoppers.
Sales at Primark for the year to 15
September are expected to be 17
per cent ahead of last year at con-
stant currency, with like-for-like
sales up three per cent.
Trading this summer in the UK
was particularly strong and sales in
continental Europe remained buoy-
ant, the group said of Primark in a
bullish end of financial year trad-
ing statement.
ABF said trading in new stores has
exceeded expectations, with the
Berlin store recording Primarks
most successful ever first day of
sales beating even Oxford Street.
Primark will have added 19 new
stores and 900,000 square feet of
new space by the year end, taking
the total estate to 242 stores.
This includes a second flagship
store on Oxford Street, which is
Primark helps
AB Foods buck
market gloom
BY KASMIRA JEFFORD
due to open on 20 September.
ABF, which also sells Silver Spoon
sugar and Twinings tea, said profits
at its sugar business for the full year
will be considerably higher than
last year thanks to rises in
European and African sales, which
have helped to offset falling prices
in China.
Analysts expect the groups sugar
division to deliver full-year profits
of around 500m, up from 315m
the previous year. The group pro-
duced 1.3m tonnes of sugar in the
UK, up from one million a year ago
due to a mild winter.
ABF is due to report full-year
results on 6 November.
CHEAP funds from the government
filtered through to small and
medium sized enterprises (SMEs)
yesterday as Lloyds became the
latest bank to cut borrowing costs.
It comes a day after RBS
announced a similar move to cut
rates for manufacturing firms,
while several leading banks cut
mortgage rates last month.
The Bank of England is providing
cheap funding for banks as long as
they increase lending to firms and
BY TIM WALLACE households. The Funding for
Lending scheme aims to boost
lending in an effort to improve
investment and spending.
Majority-state owned Lloyds has
cut one percentage point from the
interest rate on new business loans
of 1,000 or more, for all SMEs and
mid-market customers.
Credit standards are not changing,
so the only way the level of lending
can increase is if existing credit-
worthy firms apply for more loans,
or if more businesses are enticed to
apply by the lower interest rate.
SME and mid market businesses
are vital to the future growth of the
UK economy and that is
why we are committed
to passing on the full
benefit of reduced
funding costs to them
so as to support their
growth plans, said
Lloyds Andrew Bester in
a statement.
ABF, led by George Weston, said it expects full-year profits to have risen substantially
Associated British Foods PLC
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1,340
1,350 p
1,280.00
10Sep
ABF has issued an update that has conrmed strong momentum has been
sustained through Q4... In our view, the continuing strength of ABFs performance in
an increasingly challenging consumer environment further demonstrates
that Primark is possibly the most potent retail format in the UK.
ANALYST VIEWS
ABF will deliver impressive earnings growth in 2012, driven by a signi-

cant rise in Sugar prots, but it is Primarks long-term growth potential in conti-
nental Europe that most excites us...With the shares remaining very close
to our 1300p price target, we maintain our hold recommendation.
Full-year operating prot is in line with expectations. Sales at Primark are

up 17 per cent at constant currency, with like-for-like sales growth slightly better
than expected at three per cent, and following a fall in cotton prices in the
second half, divisional full-year margins are expected to be in line with 2011.
WHAT WAS YOUR

REACTION TO AB FOODS
TRADING UPDATE? Interviews by Kasmira Jefford
DARREN SHIRLEY SHORE CAPITAL
GRAHAM JONES PANMURE GORDON
JONATHAN JACKSON KILLIK & CO

Lloyds, led by Antonio
Horto-Osorio, cut rates
HSBC has pledged to make 17bn
available for UK mortgage
lending this year, including 1bn
for home improvement loans.
The figure is a 2bn increase on
the amount the bank promised in
January, reflecting the coalitions
recent proposals to relax
planning laws for homeowners.
The government last week
announced plans to soften
HSBC pledges to lend 1bn to
boost UK home improvements
BY JENNY FORSYTH
planning rules for a year,
allowing homeowners to build up
to eight metres into their gardens
without council planning
permission.
The move is also expected to
apply to lofts and garages and
will be subject to a month-long
consultation.
HSBC said it had already
approved 10.6bn of this years
loan allocation by the end of
June.
13
NEWS
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Lloyds joins SME loan price war
ONLINE gambling group Betfair has
complained to the European
Commission about restrictions on its
business in Cyprus.
Betfair argued yesterday that any
ban on betting exchanges is
discriminatory and disproportionate
and so breaches EU law.
Current Cypriot law goes against
European free market principles,
said Betfair chief legal and
regulatory officer Martin Cruddace.
The firms shares dropped in June
when Cyprus unveiled the laws, but
Betfair stock closed up 1.9 per cent at
748p yesterday.
Betfair fights
Cyprus ruling
BY MARION DAKERS
Thursday 25th October, One Mayfair, London
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This is
The One
E
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I
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S

N
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O
P
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N
THE UK house-building and construc-
tion group Galliford Try said yester-
day it has secured 100m worth of
contracts in affordable housing.
The group said that it has finalised
a 23m contract on the Gallions
Quarter development in East
Londons Royal Docks after it was
picked as one of the preferred devel-
opers for the scheme last year.
Galliford will build 170 homes in
as part of the second phase of the
700-home regeneration project, com-
missioned by the London
Development Agency.
The FTSE 250 group also confirmed
that the 52m redevelopment of the
old St Clements hospital site in Mile
End was granted approval by London
mayor Boris Johnson.
Galliford was selected as preferred
bidder last month to build 223
homes on the derelict Tower
Hamlets site, which will also make
way for Londons first community
land trust.
Some 21 homes will be granted to
the trust which manages the land
for local residents while a further
54 will be affordable homes. The
Galliford wins
100m cheap
housing deals
BY KASMIRA JEFFORD
remaining 148 homes will be sold via
the Linden Homes brand.
Galliford revealed it has also won a
11.8m contract to build a 101-apart-
ment retirement village in Malvern,
Worcestershire, while also securing a
12m contract to build 165 homes for
Northumberland County Council in
Blyth and South Newsham.
Galliford Trys strong record in
regeneration projects has been
instrumental in securing us these sig-
nificant contracts, chief executive
Greg Fitzgerald said.
We will continue to work with our
partners in government and the
housing industry to provide much-
needed affordable housing wherever
we can.
WHAT WAS YOUR BEST OLYMPIC
MOMENT OF 2012? Interviews by Will Calder
Watching Mo Farah winning his gold and being
greeted on the track by his daughter was
amazing; and of course Usain Bolt, thats something I will
never forget.
These views are those of the individuals above andnot necessarily those of their company
EUGENIE ELEY
REDBURN PARTNERS
Luckily, I was there for Super Saturday, watch-

ing Jessica, Greg and Mo bring home the
golds. Being a part of it was the most memorable part for
me; the atmosphere in the stadium was electric.
SIMON WELLS
ASPEN INSURANCE
Super Saturday was a pretty special evening
for everyone; but I think that Lara Trott bring-
ing home the gold in the omnium was extra special as it
was so unexpected.
ROBIN HALL
WILLIS
LK BENNETT, the upmarket

clothing and footwear chain, said
yesterday it has hired the former
boss of Italian luxury fashion
brand Emilio Pucci to be its new
chief executive.
Didier Drouet, who will take up
the post with immediate effect,
replaces Robert Bensoussan, the
retailers executive chairman who
has acted as chief executive since
Margaret McDonald left in 2010.
Drouet was managing director of
BY KASMIRA JEFFORD Emilio Pucci, owned by
luxury group LVMH,
from 2007 until 2011.
He was previously head
of French footwear
label Stphan
Klian and before
that was first
European and later
international
retail director at
Italian luxury
brand Salvatore Ferragamo.
Bensoussan said Drouets wealth
of international experience in the
fields of fashion, accessories and
luxury will strengthen LK
Bennetts growth, boosted in
part by Kate Middletons
fondness for the brand.
He has also been hired to lead
the groups next stage of
expansion in the UK and
overseas. LK Bennett secured
16m of new funding from Lloyds
Banking Group in May to help
accelerate its expansion in the US.
CITYVIEWS
Galliford Try PLC
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670.00
10Sep
The Duchess of
Cambridge is a fan
15
NEWS
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Think carefully before securing other debts against your home. Your home may
be repossessed if you do not keep up repayments on your mortgage.
first direct credit facilities are subject to status. Because we want to make sure were doing a good job, we may monitor
and/or record our calls. HSBC Bank plc 2012. All Rights Reserved. first direct 40 Wakefield Road, Leeds LS98 1FD.
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Didier Drouet has been named as CEO of LK Bennett and will lead its expansion
LK Bennett hires former Emilio
Pucci boss as its chief executive
UK OIL major BP yesterday said it
plans to sell interests in the Gulf of
Mexico to Plains Exploration &
Production (PXP) for $5.5bn
(3.44bn).
The sale is part of its scheme,
announced earlier this year, to divest
its Gulf of Mexico assets.
Texan-headquartered PXP has
bought interests in a number of
fields in the Gulf, including the
Marlin hub, Horn Mountain and a 50
per cent stake in Holstein, as well as
BPs stake in two non-operated assets
Ram Powell and Diana Hoover.
The deal should close by the end of
the year.
The properties acquired by PXP
were producing an estimated 59,500
barrels of oil equivalent net per day
at the end of July.
BP is around two-thirds of the way
through its $38bn divestment pro-
gramme to meet costs relating to the
2010 Deepwater Horizon crisis,
which spilled around 4.9bn barrels
of oil into the sea. It aims to complete
BP divests Gulf
of Mexico fields
worth 3.5bn
BY CATHY ADAMS
all divestments by the end of next
year.
After the sale of the fields, BP will
still operate four production plat-
forms in the region. The energy com-
pany plans on spending $4bn a year
in the Gulf of Mexico over the next
decade, adding that the Gulf
remained a key part of BPs global
expansion and production portfolio.
Separately, Anglo-Dutch oil behe-
moth Shell announced it is to sell its
50 per cent working interest in the
Holstein field to PXP for $560m.
BPs shares closed 0.71 per cent up
at 437.8p yesterday.
Bob Dudley said BP will still invest $4bn a year for the next decade in the Gulf of Mexico
BP PLC
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10Sep
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NEWS
cityam.com
YET more strife hit South African
mines yesterday, as Lonmin
workers defied a deadline set out
in the peace accord to return to
work.
Around 10,000 striking
platinum miners marched across
Lonmins shafts at Marikana
yesterday and threatened to kill
those who did not participate. It is
understood that many workers
were armed with sticks, spears and
machetes.
Wage talks between Lonmin and
the unions including militant
union AMCU started yesterday,
despite attendance figures at
Marikana only touching 6.34 per
Fresh strikes in South Africa as
miners stay away from work
BY CATHY ADAMS
cent. They will continue through
the week.
Earlier yesterday, 15,000 workers
at the KDC East mine, owned by
gold producer Gold Fields,
downed tools and stopped
production.
Last week four people were shot
with rubber bullets as they
protested at Gold One Modder
East mine near Johannesburg.
The unrest culminated in mid-
August when 44 people were shot
by police at the Marikana mine
owned by Lonmin, the worlds
third-largest platinum producer.
Lonmin has had 327m knocked
off its market capitalisation since
the strike started. Shares closed
up 3.86 per cent at 619p yesterday.
Australian mining giants axe
jobs as higher prices cut profit
GLOBAL miners BHP Billiton and
Xstrata have cut mining jobs in
Australia as they fight against lower
coal prices, higher costs and a strong
Australian dollar.
Takeover target Xstrata
announced yesterday it is to cut 600
jobs across some of its Australian
mines, the corporate headquarters
in Sydney as well as some office-
based jobs in Queensland.
Meanwhile, BHP Billiton
Mitsubishi Alliance (BMA), a joint
venture between BHP and
Mitsubishi, said yesterday it would
BY CATHY ADAMS
shut its Gregory mine, near Emerald
in Australia, from 10 October as it
deemed production at the mine was
no longer profitable in the current
economic environment.
The mine produced 2.8m tonnes of
coking coal in the year to June.
Production costs at the mine
exceed revenues, according to the
BMA asset president Stephen
Dumble.
BMA added that it would try to
move the 297 staff and contractors to
other mines run under the same
alliance.
Both Xstrata and BHP Billiton are
continuing with ongoing
profitability reviews, while BHP said
it would also review its assets.
Bhp Billiton PLC
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1,950 p 1,910.00
10Sep
17
NEWS
Glencore lays out final offer
for mega-merger with Xstrata
GLENCORE laid out its revised
final bid to Xstrata yesterday,
raising the offer but warning it
will not improve it further.
On Friday, the commodities
giant raised the merger ratio to
3.05 new Glencore shares for
every Xstrata share, up from 2.8
as previously offered.
Glencore also demanded that
chief executive Ivan Glasenberg
be chief of the new group, after a
six-month interim period under
Xstratas Mick Davis.
The commodities giant
BY CATHY ADAMS
confirmed that the revised offer,
worth 36bn, is an all-share
merger and that it will not
increase the merger ratio
further.
The increased merger ratio
represents a substantial premium
for a company with a 34 per cent
shareholder, it said in a
statement.
Independent directors of
Xstrata will now consider the
revised proposal, and will
announce whether they intend to
put it to Xstrata shareholders
before 24 September.
Charles Gibson, head of mining
at Edison Investment Research, said
yesterday that the offer terms made
it clear shareholder Qatar had been
brought onside.
Xstrata PLC
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10Sep
Mick Davis is chief executive of Xstrata, but would step down under the new merger plan
SHARES in oil explorer Chariot Oil &
Gas plummeted by half their value
yesterday, as the company
announced a well offshore Namibia
was dry.
Shares closed down 66.41 per cent
yesterday at 33p.
Chariot, which largely operates in
Africa, said it had abandoned the
Kabeljou well in the Nimrod
prospect after tests showed there
was no commercially viable oil or
gas.
The Nimrod project was Chariots
largest project in southern Africa,
although the chief executive, Paul
Welch, argued that there were still
other interests to be explored
within the licence.
He added: This is the second well
of a larger well programme in
Namibia and we will continue to
move forward with our work in the
central and northern blocks. Our
efforts in Mauritania continue to
progress as do our plans to add new
assets to our portfolio.
BY CATHY ADAMS It follows an announcement in
May, when Chariot said another well
offshore Namibia was dry. Shares
had gradually recovered from this
setback until last week, when they
fell around 20 per cent last Tuesday,
prompting Chariot to issue a state-
ment saying the results of the
Kabeljou well were not yet known.
Analysts at Peel Hunt downgraded
their recommendation on the stock,
moving to sell from hold and
slashing the target price to 40p from
150p. Investec followed suit, down-
grading its stance from buy to
hold.
Chariot Oil and Gas Ltd
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10Sep
IN BRIEF
Tullow finds gas in Kenya
n FTSE 100-listed Tullow Oil yesterday
announced a significant gas discovery
offshore Kenya. The Mbawa-1 well,
drilling 70km off the coast of Malindi in
Kenya, went down just over 2,500
metres and found 52 metres of gas,
although no oil had been found. Further
drilling will now take place at a depth of
3,275 metres. Tullow is also partners
with Apache, Origen Energy and
Pancontinental in the same licence. It
marked Tullows first hydrocarbon
discovery offshore Kenya.
Vedanta shuts controversial mine
n Heavyweight miner Vedanta is to shut
its aluminium refinery in eastern India
from 5 December due to a shortage of
bauxite. The company needs 10,000
tonnes of bauxite each day to operate
the Lanjigarh refinery to meet its targets
of 1m tonnes each year. It is now operat-
ing at 70 per cent capacity. India, the
world's fifth-biggest bauxite producer,
has been limiting the issuance of the rock
leases mainly due to local protests over
land acquisition.
Falkland Oil & Gas falls on delays
n Shares in Aim-listed Falkland Oil & Gas
crashed 26 per cent to 67.25p yesterday
after it revealed delays at its Loligo
prospect. The firm said drilling is around
five days behind schedule, but it expects
to give a further update on the well with-
in a week. Falkland hopes to reach the
wells target depth today. The Falkland
Islands are host to a string of UK-listed
companies hoping to strike commercial
quantities of oil, though only one firm
has achieved this goal so far. Argentina
disputes the islands sovereignty.
Chariot shares
plunge on dry
well discovery
NOKIA yesterday attempted to limit
the embarrassment caused by
misleading adverts for its new
smartphones by promising to
conduct an ethics review into its
business practices.
The embattled handset
manufacturer, which unveiled its
flagship phones last week, was
accused of deceiving consumers
when a promotional film for its
Lumia 920 phones video shooting
technology was revealed to be
filmed using a professional camera.
Nokia apologised over the
weekend for failing to make clear
how the film was recorded. There
was poor judgment in the decision
not to use a disclaimer, a
spokesperson said yesterday when
announcing the review.
The embarrassing incident comes
at the worst possible time for Nokia,
which is relying on the success of its
latest handsets, which run
Microsofts Windows Phone 8
software, to stay afloat. The
companys share price has fallen by
more than 85 per cent in the last
four years and dropped further last
week when it failed to announce a
release date or pricing for the next
generation of its phones.
The latest models are seen as a
make or break moment for the
Finnish firm, which posted a 650m
loss in a recent quarterly report.
Nokia launches
conduct review
after ad shame
BY JAMES TITCOMB
PUB chain Mitchells & Butlers (M&B)
yesterday ended its 18-month search
for a new chief executive, poaching
Alistair Darby from rival group
Marstons.
Darby, who served as chief operat-
ing officer at Marstons, will join
M&B at the start of next month. The
appointment caps a turbulent peri-
od for the company, which last year
saw off a hostile takeover bid from
billionaire investor Joe Lewis. The
owner of the All Bar One, ONeills
and Harvester pubs has been with-
out a permanent CEO since Adam
Fowle was ousted in March last year.
The move was welcomed by the
market, with M&B shares rising to a
six-month high while Marstons
price fell. Citigroup also downgrad-
ed Marstons to a sell rating and
warned about future growth while
M&B grabs rival
exec as new CEO
BY JAMES TITCOMB
Nomura said Darbys appointment
would provide some welcome sta-
bility at M&B.
M&Bs executive chairman Bob
Ivell will revert to his non-executive
role when Darby takes over. Ivell
said: I am confident that we have
secured the right person for the role
and that drawing on his wealth of
operational and brand experience,
Alistair will contribute greatly to
M&Bs continued strong perform-
ance.
Marstons said it was not immedi-
ately replacing Darby but that the
managing directors of its two divi-
sions will report directly to chief
executive Ralph Findlay.
M&B has suffered constant board-
room upheaval since Lewis became
the biggest shareholder in 2008. Ivell
stepped into the top role last October
after Jeremy Blood lasted just six
months as Fowles replacement.
Marstons PLC
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10Sep
19
NEWS
cityam.com
PROFILE: M&BS NEW LANDLORD
After M&B has seen three different chiefs in
the past 18 months, Darby is viewed as a
pair of safe and experienced hands to steer
the company forward. He joined Marstons
in 1997 when he assumed responsibility for
the rms own brands of pubs and
remained with the company for 15 years.
He took a position on the Marstons board
in 2003, the year he became managing
director of the beer division, and rose to
chief operating ofcer last year, where he
oversaw the companys wide-ranging
operations from its chain of inns to brew-
eries and exports.
Since the 46-year-olds appointment,
Marstons has seen a steady rise in its share
price. The company has also expanded its
own branded range of pubs since Darby
joined the board. Marstons chairman
David Thompson paid tribute to Darby yes-
terday, saying he has made a valuable
contribution to the business.
Before joining Marstons he had previously
held roles at Mars Confectionary,
Wolverhampton and Dudley Breweries,
and United Distillers, now owned by drinks
giant Diageo.
Darby was often touted as a possible suc-
cessor to Marstons current chief executive
Ralph Findlay during his time in the num-
ber two position, but is believed to have
made the decision to move on as a succes-
sion is unlikely. The two men are of a simi-
lar age.
On joining M&B, Darby said yesterday the
rm is a market-leading business with
tremendous potential that is well advanced
on a transformation programme.
I am excited by the opportunity to lead
the Company and, together with the man-
agement team, to build on M&Bs strong
estate, brands and operations, he added.
Mitchells and Butlers PLC
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288.70
10Sep
L
ONDONS streets overflowed with
pride yesterday as an estimated
million people cheered Great Britains
Olympic and Paralympic heroes
through the city, bringing down the
curtain on a glorious sporting
summer.
Some 800 athletes,
including cyclist Sir Chris
Hoy, swimmer Ellie
Simmonds and
heptathlete
Jessica Ennis,
took to floats for
the parade from
Mansion House to
the Queen Victoria
Memorial near
Buckingham Palace.
Following the
procession Prime
Minister David Cameron,
Mayor of London Boris Johnson
and Princess Anne paid tribute to
the Olympic and Paralympic teams,
both of whom surpassed their medal
targets. Johnson said: You produced such
paroxysms of tears and joy on the sofas of
Britain that you probably not only inspired
a generation but helped to create one as
well.
Cameron called it the great British
summer that will be remembered in
hundreds of years to come, adding of the
athletes: You showed that we can take on
the world and yes, we can win.
Hoy, who took his Olympic gold medal
tally to six during the Games, said: I just
didnt think it was possible to see so many
people out on the streets supporting us.
Double Paralympic gold medal winner
Simmonds said: Its amazing to celebrate
with the public, who are the ones that
helped us have that home advantage
during the Games.
The Red Arrows trailed red, white and
blue smoke at the parades end, after the
21 floats, arranged by sport in alphabetical
order, had passed down the Mall, which
was reserved for volunteers and others
who had key Games roles.
P
I
C
T
U
R
E
S
:

G
E
T
T
Y
A
N
D

L
A
U
R
A

L
E
A
N
/
C
I
T
Y
A
M
Heptathlete Jessica Ennis showed off her Olympic gold medal to the crowds
FORUM: Page 27

20
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Zara Phillips (above left) and Tom Daley revelled in front of an estimated million fans
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Boris Johnson hails the athletes

DUTCH beer group Heineken was hit
yesterday by the threat of a late chal-
lenge to its crucial takeover of the
maker of Tiger Beer.
Shares in the firm fell on reports
that Thai drinks company ThaiBev is
looking for a loan of 9bn Singaporean
dollars (4.6bn) to fund a purchase of
Fraser & Neave (F&N), the Singaporean
outfit set to sell its 40 per cent stake in
Asia Pacific Breweries (APB) to
Heineken.
Heineken announced last month
that it had agreed a S$5.4bn deal with
F&N bosses for its stake in APB, which
makes Tiger and other beers popular
in Asia.
The deal due to be approved by
F&N investors on 28 September
would give Heineken an 82 per cent
holding in APB, triggering an auto-
matic takeover bid.
However, buying out F&N would
give ThaiBev the management con-
trol it needs to block the deal.
Heinekens purchase of APB is seen as
Heinekens APB
takeover faces
11th hour threat
BY JAMES TITCOMB
crucial for the firm as its European
operations stagnate. The drinks firm
the worlds third biggest missed prof-
it forecasts in the first half of the year
due to a drop in beer sales in Western
Europe.
However, its drawn-out purchase of
APB has seen repeated threats from
Charoen Sirivadhanabhakdi, the bil-
lionaire owner of ThaiBev.
The Thai firm bought a 29 per cent
stake in F&N last month, forcing
Heineken to raise its bid in an attempt
to rush through the deal. Heineken
and ThaiBev refused to comment.
Heineken is looking to expand in Asia with the purchase of the Tiger beer manufacturer
Infosys Ltd
2,550
2,500
2,400
2,450
2,350
INR
2,512.35
10Sep
22
NEWS
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Infosys tries to buck outsourcing
slowdown by buying Swiss firm
SOFTWARE exporter Infosys said
yesterday it had agreed to pay 330m
Swiss francs (218.4m) for
Lodestone, a Zurich-based
technology consultancy.
Infosys, which has seen
outsourcing income in its home
country of India and in key US and
UK markets hit by increased
competition and the global
slowdown, said the purchase was
part of a strategy to improve its
consultancy and software
businesses instead of the less
BY JAMES TITCOMB
profitable outsourcing operation.
The Bangalore-based firm has
missed sales targets and seen its
share price slump this year. The
Lodestone deal will add around 200
clients to Infosyss roster of 711.
A key plank of our Infosys 3.0
strategy is to expand our
Consulting & Systems Integration
business. This acquisition fits
perfectly into that strategy, chief
executive SD Shibulal said. The
cash deal is expected to close by the
end of October.
Rival outsourcers Cognizant and
Tata Consultancy have
outperformed Infosyss growth in
recent months despite the global
decline in outsourcing spending.
THE BRITISH inventor of the
laptop computer, Bill Moggridge,
has died aged 69 after a battle
with cancer.
The industrial designer
created the Grid Compass
computer in 1979. It was the
first device of its kind to
marry a screen and a
keyboard connected
by a pair of hinges, a
design which
revolutionised the
portable computer
industry. The
Smithsonians
Cooper-Hewitt
National Design
Museum, where
Moggridge was a
British inventor of first laptop
computer Bill Moggridge dies
BY JAMES TITCOMB director, said he died on Saturday
night.
His computer in a briefcase
was much lighter and easier to
carry than other portable
computers at the time when it
launched in 1982, and became
popular with the US military,
despite costing more than
5,000. More than two-thirds of
the worlds personal
computers sold today
are laptops.
Moggridge was also
an outspoken
advocate of the
importance of design
in electronics.
Bill Moggridge died aged
69 of cancer on Saturday
Heineken
45.50
45.00
44.00
44.50
43.00
43.50
43.32
10Sep
SOUTH Korea will engage in
additional fiscal stimulus, in order
to carry its export-driven economy
through the world slowdown, it
announced yesterday.
Policymakers in Seoul cannot do
anything about their beleaguered
export markets directly, and are
therefore adding nearly 3.3bn
worth of stimulus to the near-
4.5bn announced in June.
But markets were disappointed
by the magnitude of the
interventions, given that together
they amount to only around one
per cent of the countrys GDP. The
KOSPI composite index of the 100
firms with the biggest market
capitalisation closed 0.25 per cent
down yesterday.
Analysts said that the stimulus
was small because the slowdown
was much more muted in Asia
compared to Europe and the US.
The growth slowdown has been
incremental and it's all being met
with incremental policies, said
Nigel Chalk, emerging markets
expert at Barclays.
Compared to Europe and the US,
the South Korean national debt, at
roughly 34 per cent of GDP, gives
much more room for manoeuvre
on fiscal policy.
South Korean
stimulus fails
to stir markets
BY BEN SOUTHWOOD
THE FRENCH economy shrank in the
third quarter of the year, according
to updated estimates released yester-
day, while the pace of Italys econom-
ic decline appears to be worse than
previously believed.
France, the second largest economy
in the Eurozone, will lose 0.1 per
cent of GDP in the three months to
September, its central bank expects.
Separate data from Frances
National Institute for Statistics and
Economic Studies (INSEE) showed
French industrial production rose by
0.2 per cent in July, yet the positive
upturn is not believed to be enough
to revive the flagging economy.
French output has been flat since
October last year, and any decline in
GDP will place greater pressure on
new President Francois Hollande.
And the situation is even worse
elsewhere in the euro area, with
Italian GDP collapsing by 0.8 per cent
in the second quarter, according to
new estimates released yesterday.
Figures reveal
GDP decline in
France and Italy
BY JULIAN HARRIS
Its economy lost 2.6 per cent annu-
alised in the three months to June,
the official figures showed 0.1 per
cent worse than previously believed.
After the fourth quarterly decline
in a row, the Italian economy looks
set to remain in contraction territory
for another few quarters, said INGs
Paolo Pizzoli, predicting a further 0.3
per cent decline in the third quarter.
Meanwhile, the European Central
Bank (ECB) confirmed yesterday that
it did not buy any government bonds
last week, as it also announced the
end of its Securities Markets
Programme (SMP).
The ECB agreed last week to replace
the SMP with a new, potentially more
aggressive debt-buying programme.
Some Eurozone leaders, such as
Italian Prime Minister Mario Monti,
have called for the ECB to intervene
more proactively in pulling down the
borrowing costs of embattled states.
The SMP, which was used to snap up
bonds during Eurozone strife last
year but has not been utilised at all
since March, has a balance of 209bn.
Sluggish demand at home and
abroad knocks Chinese trade
CHINESE export growth
disappointed last month according
to trade data released yesterday,
increasing the prospect of more
monetary and fiscal stimulus from
Beijing authorities.
Exports were up 2.7 per cent
compared to August last year, yet
growth is being weighed down by
weak demand in areas such as the
Eurozone.
And imports shrank by 2.6 per
cent year on year, shocking many
BY JULIAN HARRIS
economists who had expected
growing domestic demand for
foreign goods.
The import surprise on the
downside is very unusual. It is an
alarming sign for the government
and they probably saw it coming,
said Zhang Zhiwei, chief China
economist at Nomura in Hong Kong.
Weve now pretty much got the
full batch of August data and its
clear that the slowdown pressure is
growing and that the government is
feeling the need to act. I think there
will be further easing in the months
ahead, he said.
BarCap added: Assuming a rise of
1.1 per cent year on year in Julys
export prices, we estimate that real
exports barely grew over July to
August, compared with seven per
cent year on year in quarter two and
four per cent in quarter one.
Yet while further monetary
easing is touted by some analysts,
Chinese authorities may be wary of
stoking inflation. Consumer price
inflation rose two per cent
annualised last month, up from 1.8
per cent in July.
US CONSUMER credit shrank in
July, the Federal Reserve revealed
last night, the first fall for nearly a
year.
The change surprised analysts and
gave yet further impetus to the
calls for another programme of
asset purchases.
Driven by Americans paying off
credit card debt, consumer credit
shrank by nearly $3.3bn (2.1bn) in
July, compared to Wall Street
expectations that credit would
grow $9.1bn, as recorded in a
Reuters poll.
This came from a $4.8bn drop in
Fresh calls for asset purchases
after US consumer debt shrinks
BY BEN SOUTHWOOD
revolving credit which includes
credit card debt and a $1.6bn
increase in non-revolving credit.
Except for a few blips, including
August last year, credit has been
expanding since the beginning of
the recovery after the financial
crisis, and some analysts are
worried that Julys contraction
may foreshadow further economic
slowdown.
And given the Feds
commitment to stand in if the
economy did not improve
significantly, another raft of poor-
looking data will only add to the
speculation that a third round of
quantitative easing is on its way.
23
NEWS
cityam.com
Federal Reserve governor Ben Bernanke is under pressure to announce more intervention
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CHINESE EXPORTS TO WEALTHY AREAS HAVE DIPPED
2005 2007 2009 2011
-40
-20
0
20
40
60
80 %
US
JAPAN
EU
IN BRIEF
Air Nigeria shuts down
nInternational carrier Air Nigeria said
yesterday it is closing down due to
staff disloyalty and environmental
challenges, the latest setback for the
country's aviation industry after a
rival's plane crash in June killed 163
people. Privately-owned Air Nigeria
was part of Richard Branson's Virgin
fleet until he pulled out in 2010.
BG Group CFO on leave of absence
nBG Groups chief financial officer
Fabio Barbosa is on a leave of absence
to undergo medical treatment in Brazil
for a recently diagnosed condition.
Group financial controller Den Jones
will replace him with immediate effect,
for what is expected to be the rest of
the year. Jones has been with BG Group
since 2010, having previously worked
for PwC and Citibank. Chief executive
Sir Frank Chapman will assume the
chairmanship of the investment com-
mittee in the interim.
Libor sparks benchmark rethink
nThe Libor-rigging scandal should
prompt a wave of new rules for finan-
cial benchmark governance, the Global
Financial Markets Association said yes-
terday. The group calls for all systemi-
cally important benchmarks to be
subject to proper regulatory oversight,
with countries working together to set
rules. The GFMA set out its recommen-
dations in a letter to regulators includ-
ing the Bank of England and the FSAs
Martin Wheatley, who is conducting a
review into Libor for the Treasury.
SMALL FIRMS have little faith in
official forecasts, preferring
instead to rely on information
from their own business or their
peers, a survey from Axa has
revealed.
A whopping 92 per cent of respon-
dents said they did not use official
government economic predictions
in planning their business strategy,
the survey showed.
Of those disregarding the govern-
ments outlook, 58 per cent said
the forecasts were irrelevant to
them, while almost a third said it
was because the predictions were
inaccurate.
The UKs small business commu-
nity has long relied on help from a
variety of sources to inform their
business plans be they govern-
ment bodies, trade organisations,
industry peers or others, said
Darrell Sansom at Axa.
The old adage that knowledge is
power has never been more true,
Small firms say
they lack faith
in official stats
BY BEN SOUTHWOOD
Sansom claimed.
But the survey seems to show a
population of fiercely independent
small businesses, who are unwilling
to go outside the firm to get this
knowledge some 83 per cent said
they do not plan to seek external
advice on their business at all this
year.
In the 17 per cent minority who
did plan to seek external advice, the
biggest fraction, 37 per cent, said
they turned to online business fig-
ures for advice.
The second most popular
response, coming from 29 per cent
of respondents, was that they
gleaned information from business
networks, while 28 per cent sought
advice from an accountant and 26
per cent from their bank.
Government bodies, such as the
Department for Business,
Innovation and Skills, did not place
in the top 13 responses recorded by
the survey, but 26 per cent of
respondents said they took advice
from a family member.
Londoners upbeat as
the city again defies
housing downturn
LONDON bucked a national
downward housing trend once
again in August, according to a
report released yesterday by RICS.
The rosy figures appear to justify
Londoners optimism, compared to
the gloom in the rest of the
country, which was recorded
yesterday by a YouGov poll.
The net house price balance was
-19 in August, up from -23 in July,
but still well below the zero level
which would imply negative and
positive responses balanced out,
and prices were standing still.
Though many sub-indices
improved, most still indicated
decline. New buyer inquiries fell
more slowly, as did price
expectations for the next quarter
and year.
But the London market has
performed consistently well, with
an average net balance of 17 per
cent of surveyors reporting price
rises over the past three months.
According to YouGov, this robust
London market is driving optimism
in the capital, whereas weakness
BY BEN SOUTHWOOD
elsewhere is leading to pessimistic
expectations.
Forty-four per cent of London
homeowners polled believed their
home was going to increase in value
over the next 12 months, whereas
just 23 per cent of homeowners
outside the capital thought the
same by contrast 27 per cent
thought their house would lose
value.
Londoners remain bullish on
property, said Mike Nardis at
YouGov. Its popularity remain[ing]
in sharp contrast to the rest of
Britains sluggish real estate
market.
Prices (last 3 months)
1995 1999 2003 2007 2011
-40
-20
0
-100
-80
-60
20
40
60
80
100
Netbalance, %Seasonallyadjusted
24
NEWS
cityam.com
Hindmarch bags global spread
as luxury goods sales increase
BRITISH luxury handbag maker
Anya Hindmarch is set to start
selling in the US, Middle East and
Asia.
Hindmarchs brand, which
acquired a new investor last
month, will open a
concession in Harvey Nichols
Kuwait and a flagship store
on Madison Avenue in New
York next year. South Korea,
Hong Kong and Japan are
also expected to host new
shops.
The companys turnover
BY JENNY FORSYTH
increased by 16 per cent to 23.2m
in 2011, but growth costs cut profits
to 330,000. Worldwide sales rose to
40m.
Last month London-based
private equity group Kelso
Place sold its 38 per cent stake
to Qatar Luxury Group,
Sheikha Mozahs
investment vehicle
Chief executive
James McArthur
said: We are on
track with hitting
our strategic plan
milestones. We are continuing to
invest, which is clearly the right
decision given the tremendous
excitement and energy around the
brand.
The recent deal is not Qatar
Luxury Groups first foray into
fashion. It has a stake in French
leather-goods maker Le Tanneur &
Cie, and funds managed by the
Qatari royal family this year bought
Italian fashion house Valentino for
700m (559m), and Harrods for
1.5bn in 2010.
Hindmarch, who founded the
company 25 years ago, is chairman
and chief creative officer.
THE UK'S jobs boom, which has
continually surprised analysts
and defied the double-dip
recession, will endure through to
the fourth quarter of the year,
recruiter ManPower said today.
The outlook for employment in
the UK stands at +3 per cent, its
strongest level since 2008, the
group said, implying employers
will continue to hire new staff
through to the end of the year.
The final quarter of 2012 is
set to be the strongest in five
years, said James Hicks,
managing director at ManPower.
Thats news in its own right,
because normally theres a tail-
off in the fourth quarter, Hicks
Recruiter says jobs boom will
continue to the end of the year
BY BEN SOUTHWOOD
added.
But this is especially notable
in the midst of a double-dip
recession,he went on. And
particularly because firms of all
sizes are preparing to increase
their employment.
The strongest growth will be in
business services and retail
banking roles, the survey
suggests.
But Hicks warned that
excessive labour market
regulation could put a spanner
in the works.
He pointed to the growth in
non-traditional employment, and
said that this sector could be
severely hamstrung if the
government didn't slash labour
market red tape soon.
THE COMPANY behind the
Pokemon gaming phenomenon
has chosen Chiswick as its new
UK base, it confirmed yesterday.
The Pokemon Company
International will move its
London offices westward to the
Blackstone-owned Chiswick Park
from its previous base in Fulham
as part of a ten-year lease deal.
The gaming group plans to take
almost 10,000 square feet of
office space at a reported rate of
43 per square foot, with
provision for a break after five
years.
Chiswick Park has enjoyed a
vacancy rate of less than one per
Pokemon chooses Chiswick as
its new headquarters in the UK
BY MARION DAKERS
cent since Blackstone bought the
1.8m square foot site for 480m
in April 2011, it said yesterday.
Swarovski and Absolut Vodka
agreed to shift their UK offices to
the park in March, while oil
services group Aker inked a deal
for space in June.
Savills and CBRE acted for
Blackstone on the contract, while
Frost Meadowcroft acted for
Pokemon.
This move continues to
highlight Chiswick Park as the
destination office space for
leading businesses from around
the world, and the appeal of the
park to a variety of different
sectors, said Johnny Bray,
associate director at Savills.
Stoke Park
Country Club,
where James
Bond once
beat Auric
Goldfinger at
golf, hosted
the inaugural
Gaucho Cup
yesterday, an
above par do
organised by
yourgolftravel
.com. Winners
Bermar
International
(right, with
operations
director
Martin
Williams,
centre) scored
five nights in
Argentina.
GAUCHO CUP WINNERS
Hindmarch seeks expansion
LONDONREPORT
Norton Rose
Liam OConnell has been
appointed a partner within the
law firms litigation and dispute
resolution practice. He joins from
CMS Cameron McKenna, where
he was a partner and head of its
commercial regulatory and
disputes group. OConnell
specialises in insurance policy
coverage analysis, and also has
business experience in contingency markets and cyber
risks.
Troika Dialog
Max Kolodkin and Sergei Chinkis have been appointed
managing directors and co-heads of sector investment
banking for the investment division of Sberbank. Kolodkin
joins from Goldman Sachs, where he was most recently a
managing director. Chinkis joins from HSBC, where he was a
managing director and global head of its metals and mining
group.
Aberdeen Asset Management
The asset management firm has appointed Ibtissem Sfaxi to
the role of senior business development, property, for
France and the Middle East. She joins from Pradera Real
Estate, the UK-based fund manager, where she was
responsible for business development in Europe and the
Middle East. Sfaxi also previously worked as vice president
at JER Partners.
Cooke, Young & Keidan
Philip Rubens has been appointed as a commercial
litigation solicitor at the law firm. He is a specialist in
financial services and regulatory matters, and joins from
Finers Stephens Innocent, where he was a partner for over
20 years.
Buck Global Investment Advisors
Brian McCauley has been appointed as a senior investment
consultant at the human resources consultancy. He has over
20 years experience in investment, and was most recently
a consultant at Aon Hewitt. McCauley has also worked in a
variety of large investment management firms.
Ignis Asset Management
Jo Howley has been appointed as product specialist within
its liability driven investment and fixed income business.
She joins from BlackRock, where she has worked since 1997
in a number of similar positions.
Signature Litigation
The specialist commercial litigation practice has appointed
two new associates. Maria Sandler most recently worked in
Credit Suisses in-house litigation team. She has also held
roles at Eversheds. Rory Spillman most recently worked at
Hogan Lovells, where he joined as a trainee in 2010.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
Markets dip on
Wall Street as
tech stock falls
W
ALL Street stocks fell
yesterday as investors locked
in gains on a recent rally
ahead of possible policy
action from the Federal Reserve later
this week, while weakness in Intel
shares weighed on the Nasdaq.
The benchmark S&P 500 index
closed at highs last week not seen in
nearly five years, motivating some
investors to pull back from those
gains Monday ahead of the Federal
Reserves decision on Thursday.
The markets are up a lot, so the
short-term risks are on the downside,
said Jim Awad, managing director at
Zephyr Management in New York.
Shares of Intel lost nearly four per
cent after several brokerages cut price
targets on the chipmaker. Shares of
Apple, the worlds largest publicly
traded company by market value,
dropped more than two per cent as
the markets weakness was felt most
in tech shares.
Investors are on guard against the
unknown outcomes of several events
this week, including a ruling by
Germanys constitutional court
tomorrow on the legality of the
Eurozones permanent financial res-
cue fund and the Fed decision on
Thursday.
Expectations for more stimulus
from central banks in the United
States and Europe have underpinned
markets in recent weeks.
The Fed looks set to launch a third
round of bond purchases this week
and economists said Fridays weak
report on jobs growth for August was
likely to convince the US central bank
a looser monetary policy was needed.
Analysts said the uptrend for mar-
kets remains intact, and traders were
eyeing the 1,440 level on the S&P as
the next barrier to further gains.
When you have the central banks...
practicing loose monetary conditions,
you basically have a put on the mar-
ket. And even any weakness that does
develop should be somewhat con-
tained, said Michael Gibbs, co-head of
equity advisory group at Raymond
James in Memphis, Tennessee.
The Dow Jones industrial average
ended down 52.35 points, or 0.39 per
cent, at 13,254.29. The Standard &
Poors 500 Index closed down 8.84
points, or 0.61 per cent, at 1,429.08.
The Nasdaq Composite Index dropped
32.40 points, or 1.03 per cent, to
3,104.02.
Investors sold some big-cap tech
names that have done well all year.
Worse-than-expected data on imports
from China added to selling in the
sector.
Chinese import data showed a fall of
2.6 per cent on the year in August,
short of expectations for a 3.5 per cent
rise. Exports grew 2.7 per cent, below
forecasts for a three per cent rise.
American International Group
shed two per cent to $33.30 after the
US Treasury Department said it will
sell most of its stake in the insurer,
making the government a minority
investor for the first time since it res-
cued the company.
B
RITISH blue chip shares dipped
yesterday as weakness in defensive
stocks outweighed strength in risk-
sensitive cyclicals, such as miners,
and investors positioned for more
newsflow out of Europe and the United
States.
The FTSE 100 closed down 1.60 points, or
0.03 per cent, at 5,793.20, with the index
yo-yoing in a tight range around the psy-
chologically important 5,800 level.
The blue chip index consolidated after
hitting a 13-month high on Friday follow-
ing fresh pledges last Thursday from the
European Central Bank (ECB) for a govern-
ment bond-buying programme to help fix
the Eurozone debt crisis.
Several political hurdles to this remain,
notably a German constitutional court
(GCC) ruling tomorrow on the Eurozones
European Stability Mechanism (ESM) res-
cue fund, although most analysts expect
this to be passed.
Given our expectations of a thumbs up
from the GCC then we would anticipate
equity markets to continue to rally, with
financials and cyclicals to be in the fore-
front. If the GCC returns a negative stance
then equity markets may well be marked
sharply lower, said Gerard Lane, market
strategist at Shore Capital.
Miners were the top performers, tracking
firmer copper prices as expectations built
for further stimulus measures from cen-
tral banks after weak trade data from
China, the worlds top metals consumer.
A disappointing US jobs report last Friday
was also seen as supporting action from
the Federal Reserve this week.
UBS said it expects a third round of quan-
titative easing when the Fed concludes a
two-day meeting on Thursday, which
would trigger capital flows to emerging
markets and potentially push miners
towards the top of their valuation ranges.
UBS raised a number of price targets in
the mining sector, upgrading Kazakhmys,
the worlds 10th-largest copper miner, to
buy from sell. Kazakhmys shares
topped the blue chip risers, up 4.4 per cent.
The sector was also in the spotlight after
commodities trader Glencore tabled a
raised $36bn all-share bid for miner
Xstrata, warning it would not improve the
terms again after making concessions.
Xstrata was up 1.2 per cent while
Glencore fell 2.1 per cent.
Energy shares were also higher, led by BP
with the heavyweight stocks 0.70 per cent
rise accounting for around a 2.3 point gain
on the FTSE 100 index as investors wel-
comed further asset disposals by the
group.
US firm Plains Exploration & Production
is buying BPs stake in some deepwater
Gulf of Mexico wells for $5.55bn.
The implied price of the deal is signifi-
cantly higher than we had expected, said
RBC Capital Markets analyst, Peter Hutton,
in a note.
Away from commodity issues, Marks &
Spencer rose 2.7 per cent, as takeover spec-
ulation swirled around the clothing retail-
er once again.
Bankers are exploring debt packages to
back a potential buyout of M&S after being
approached by a number of private equity
buyers interested in a deal, loan bankers
said.
But elsewhere on the high street, the
owner of the Primark discount clothing
chain, Associated British Foods, fell two
per cent as investors discounted a strong
trading update from the retailer to food
producer after a strong run in its shares.
Other food producers, brewers and defen-
sive stocks dominated the blue chip fallers
board as investors switched to more risk-
sensitive cyclical stocks. Brewer SABMiller
fell 2.3 per cent, while consumer products
firm Unilever shed 1.3 per cent.
FTSE dwindles as defensive stocks
drop ahead of Fed and euro news
BESTof theBROKERS
Premier Oil PLC
376.90
10 Sep
p
390
380
385
375
370
365
PREMIER OIL
Liberum Capital rates the FTSE 250 firm as sell from a previous hold
rating, saying performance has to improve if this is to add significant
value and saying the firms explorations will not reap rewards for
several years. Liberums Andrew Whitlock adds that performance will
suffer in the medium term due to a focus on the traditional core areas
of the North Sea and Asia. The price target has been cut to 320p.
FTSE
5,825
5,775
5,800
5,725
5,750
5,700
5,675
5,650
5,793.20
10 Sep
DASHBOARD CITY
CITY MOVES
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
NEW YORK
REPORT
YOUR ONE-STOP SHOP FOR JOB MOVES,
BROKER VIEWS AND MARKET REPORTS
in association with
Playtech Ltd
390.00
10 Sep
p
400
396
398
394
392
388
390
PLAYTECH
Investec has downgraded the online gambling software group from
buy to hold, calling Playtech a Jekyll and Hyde firm. Analyst
James Hollins says that while the company continues to deliver strong
underlying growth, it has been undertaking ever-more interesting
activities including buying a number of businesses from 48 per cent
shareholder Teddy Sagi. However, the target price was raised to 400p.
Smith & Nephew PLC
678.50
10 Sep
p
685
675
680
670
665
660
SMITH & NEPHEW
Citigroup has upgraded the medical equipment company from sell to
buy, saying it believes the firm will announce a share buyback scheme
next year. The bank has forecasted an 11 per cent rise in earnings per
share due to the buyback. Smith & Nephew, which is Europes leading
maker of artificial hips and knees, hiked its dividend last month when
reporting better than expected profits. A target price of 790p was set.
25
cityam.com
T
HE public are unhappy with
banks. And some people are
exercising their right to
switch their accounts. This is a
key part of capitalism and
something that should be
welcomed. After all, the threat of
exit is one of the most important
ways to ensure customer
satisfaction. But there is a problem
when people go beyond exercising
their own right to exit and seek
legislation that makes exit easier for
everyone.
There are two separate issues here.
The first is the costs involved in
switching from one bank to another.
As someone who is both instinctively
loyal and lazy, they dont really
bother me. Yes, I might get a better
S
CANDINAVIAN nations are
often regarded as role models.
Egalitarian Richard Wilkinson
once said that, if you want to
live the American dream, you
should live in Denmark. Sweden often
gets envious glances from social
democrats in the Anglophone world.
Scandinavian societies are charac-
terised by high living standards, high
life expectancy, low crime rates, high
social cohesion and an even income
distribution. But, are these attributes
caused by large welfare states? If you
study Swedens history in depth, much
of its success is explained by a unique
culture, as well as reliance on free-mar-
ket policies for much of its history.
It has historically been difficult to
survive in the cold Scandinavian cli-
mate. The population therefore adopt-
ed a culture with a great emphasis on
individual responsibility. Research has
shown that these homogenous Nordic
societies had strong social cohesion,
high levels of trust and a strong work
ethic attributes which pre-date the
welfare state. These Scandinavian
norms allowed welfare states to be
cityam.com/forum
Swedens tax burden
has fallen from 51.4 per
cent of GDP in 2000, to
45.2 per cent in 2010
THEFORUM
Twitter: @cityamforum on the web: cityam.com/forum or by email: theforum@cityam.com
Agree? Disagree? Got a sharp comment?
The Forumwants you to join the debate.
Top responses will be reprinted in The Forum.
26
NIMA SANANDAJI &
PHILIP BOOTH
The success of Scandinavia owes
nothing to high taxes or welfare
expanded and taxes to rise, with limit-
ed avoidance and shirking.
But things began to change as the
welfare state became embedded. In
the World Value Survey of 1981-84,
almost 82 per cent of Swedes said that
claiming government benefits to
which you are not entitled is never jus-
tifiable. By the 1999-2004 survey, only
55 per cent held the same belief. In
recent years, Sweden has debated the
need to limit the misuse of the welfare
system and to move towards less gen-
erous welfare benefits and lower taxes
to encourage hard work.
A popular notion is that Swedens
strong growth is closely tied to a peri-
od dominated by Social Democratic
party rule and high taxes. In fact,
between 1870 and 1936 (before the
start of the Social Democratic era),
Sweden had the highest growth rate
in the industrialised world. The period
was characterised by the development
of a market-oriented economy. As late
as 1950, Swedish tax revenues were
only around 21 per cent of GDP. The
shift towards a big state occurred dur-
ing the following years, as taxes
increased by almost one per cent of
GDP annually. Then, from 1975 to
1995, economic development was
stagnant.
Another popular notion is that high
equality levels are a direct result of
high taxes. However, in 1920, well
before the existence of a large welfare
state, Sweden had among the lowest
levels of inequality in the western
world. Swedish economist Andreas
Bergh recently concluded that most
of the decrease in income inequality
in Sweden occurred before the expan-
sion of the welfare state. Indeed, the
combination of high taxes and bene-
fits and labour market regulations
made it difficult for the foreign born
and the young to enter the labour
market in the social democratic era. In
the last few decades, about 20 per cent
of Swedes of working age have been
supported by benefits.
Lately, things have improved.
Reforms have moved Sweden towards
lower taxes and less generous welfare
benefits. This has resulted in a reduc-
tion in government dependency a
remarkable feat during a period of
global economic instability. The state
in Sweden is back to about the same
size if measured by government
spending as a proportion of national
income as that of the UK.
Not only Sweden, but other
Scandinavian nations have gradually
increased their economic freedom in
recent years. Economic freedom rank-
ings show that Nordic nations have
moved considerably towards free mar-
kets, while the UK and US have
reduced their levels of economic free-
dom. In recent rankings, Denmark
ties with the US and surpasses the UK
on economic freedom. The Danish
social democratic government is pur-
suing lower taxes as a route to
strengthening long-term economic
development. Even the famously high
Swedish tax burden has been reduced
from 51.4 per cent of GDP in 2000 to
45.2 per cent in 2010.
Sweden and other Nordic countries
are moving tentatively back towards
the free-market policies that served
them so well in the past. The period of
left-leaning radicalisation was made
possible by the pre-existing strong
social norms. It was not responsible
for them. It was a failed experiment.
Nima Sanandaji is author of The
Surprising Ingredients of Swedish Success
free markets and social cohesion, published
by the Institute of Economic Affairs (IEA).
Philip Booth is editorial and programme
director of the IEA.
deal elsewhere, but I do not believe
its worth my time trying to find
out. I dont have any major problem
with my bank, and so Im willing to
stay.
Obviously this makes the bank
happy, but this benefits me too. The
fact that customers do not routinely
switch bank accounts give them
more certainty and this is of value.
Indeed, when businesses are better
able to plan their customers will be
better off as a result.
Ultimately its an error to think
that the competitive relationship is
between customer and bank. Think
about the dating market. It can
sometimes feels that you are
competing with the person you are
on a date with. But this is incorrect.
You are competing with potential
rivals. Similarly, bank customers
dont compete with banks, they
compete with other customers. In
this case, those who dont sign up to
a hard to exit account (and want the
benefits that come with that) are
competing with those who want
easy exit accounts. I have no
problem with people choosing easy
to leave accounts for themselves. But
personally I think its a myth that
my benefits from marriage would
increase if divorce became easier.
The second issue is the ignorance
that customers have about the best
offers within their existing bank. Its
common practice for banks to offer
high rates on new products for a
limited time that later reset to a
lower one. Therefore, if you want the
best deals there is a burden on you
to look for them.
If there is demand among
consumers for banks that do not do
this, that do not provide new
products and do not need to entice
customers to use them then banks
will provide this. But there is a trade-
off between risk and return, and a
trade-off between innovation and
stability.
This is where regulation comes in.
By definition, regulation makes
banks more homogenous. It also
raises the costs of banking. If some
people want low risk, low return
savings accounts, fine. If others
want a bank that creates lots of new
products but requires you to pay
attention, fine. Its only barriers to
entry that would prevent different
banks from catering to these
demands.
There is one universal law of
economics: there is no such thing a
cost-free regulation.
Anthony J. Evans is associate professor of
economics at ESCP Europe Business School:
www.anthonyjevans.com
Twitter: @anthonyjevans
FRONTLINE
ECONOMICS
ANTHONY J. EVANS
Banking regulations can be costly: Sometimes it pays to be loyal and lazy
In association with
27
The Forum is open for you to take part. Got a sharp comment on
one of todays columns? Do you have another subject you want
to share your opinion on? We want to hear your views.
Email theforum@cityam.com or comment at cityam.com/forum
Taxing wealth fails
[Re: These politicians are wrong. A tax on
wealth would be bad for Britain, yesterday]
Its interesting that Andrew Sentances
article makes the same point as the one by
Andrew Haldenby, but from a different
angle. The truth they both reveal is that low
tax economies have faster growth, greater
productivity gains, and stronger increases in
living standards. And we should also
remember that wealth taxes have been
tried elsewhere, and have most often been
abandoned. Frankly, we should not be
distracted by new tax innovations, but
should work harder to reform the taxes we
already have. Income tax must be flattened
to make it fairer and less open to avoidance.
DavidPeddy, managingdirector of Surgical
Instrument GroupHoldings
Ignore the unions
[Re: TUCs plan to ban business in the public
sector is outdated, yesterday]
Andrew Haldenby interprets the unions
distrust of public sector innovation as an
anti-business attitude. But unions are neither
for or against business. They simply dont
understand it. Union members work
disproportionately in the public sector the
only part of the economy willing to put up
with their antics. But taxpayers cant afford
to stump up for high salaries or generous
working benefits. Haldenby suggests we
shouldnt allow the unions to get in the way
of change. But, union leaders cant do
anything about reform. Theyre irrelevant,
and we can ignore their tub-thumping after
the nuisance of a strike or two.
Naomi Porter
F
AREWELL then, to the
undisputed stars of the
London 2012 Olympic and
Paralympic Games the
Games Makers will be missed.
Overnight, London became a
friendlier place. Anyone who was
helped by them, or who heard the
prolonged applause for them at the
closing ceremonies, will know they
rose to the occasion brilliantly and
contributed hugely to the incredible
success London 2012 was.
The Games Makers have shown the
world how good British customer
service can be. It will boost the confi-
dence of the whole hospitality sector,
which is good news for jobs and
skills.
Whats important now is that we
capture the spirit that made them
such a powerful force, and apply the
learnings as widely as possible to give
the economy a spring in its step.
Ive been reflecting on what made
70,000 people win the nations good-
will in such short order. I believe its
down to three factors: the long-term
commitment they made to give up
their time; the quality training they
received; and the impact of seeing
the difference they were making.
Lets put ourselves in the shoes of a
Games Maker.
First, they bought into being a vol-
unteer two years out from this sum-
mer. They committed to seeing the
job through long before they got any-
where near a Games venue. Locog
deserves much credit for creating
this loyalty. Its a reminder to all busi-
nesses of the power of your workforce
when they feel proud of what theyre
doing.
Second, its a relatively well-kept
secret that the Games Makers
received unprecedented training to
prepare them for their moment in
the spotlight. This was the first time
an Olympic and Paralympic Games
TOP TWEETS
Its a move in the right direction to cut red
tape and health and safety bureaucracy. It
should save companies millions.
@suecartwright
I salute Michael Fallons plan to cut red tape
for business. But most of it comes from
Brussels, and cant be touched.
@RogerHelmerMEP
Volunteers for London 2012 made the Games.
They should wear their uniforms with pride.
Thank you Games Makers.
@JohnsonThompson
Good news on union membership. In 2011, it
was down 143,000 from 2010. Now only 26
per cent of employees are union members.
@harryph
Is the government doing enough to remove
the burden of regulation on UK businesses?
YES
The government is already using its Red Tape Challenge to identify
burdens that need amending or scrapping. Business should be
confident that, before the next election, thousands of regulations will
be scrapped or amended. The appointment of Michael Fallon to the
Department for Business is a positive step. He will help to unleash a
wave of regulatory cuts and supply-side reforms. Fulfilling pledges
to change employment laws to make hiring and dismissing staff less
costly, and axing nanny-state health and safety laws, will go a long
way to help businesses to grow. In particular, reform will help small
and medium-sized businesses, who support two-thirds of jobs.
While we would all like the government to move faster, Conservative
ministers have to untangle the labyrinth of red tape from Brussels
and bureaucracy left behind by Labours top-down approach. But
progress is now being made.
Priti Patel is Conservative MP for Witham.
Priti Patel
NO
Alexander Ehmann
New business minister Michael Fallon says hes the man to re-light
the bonfire of regulations. Business will be crossing its fingers
because, much like this years summer, this governments bonfire has
had a soggy 2012. The Prime Minister said that his government would
be the first to leave office having reduced the overall burden of
regulation, rather than increasing it. Yet the governments own
Statement of New Regulation shows that it is within a whisker of
having increased the burdens on business. Fallon must press for a
rethink of some sizeable government proposals, like plans to increase
parental leave allowances, and to look again at plans for the
regulation of lobbyists, plain packaging of tobacco and minimum
prices for alcohol. These are thorny issues, but with Fallons hotline to
Downing Street, perhaps he has a stronger chance than most.
Alexander Ehmann is Head of Regulatory Affairs at the Institute of
Directors.
RAPIDresponses
Organising Committee turned to a
commercial partner to support the
volunteers every step of the way.
McDonalds stepped into this role
because we know a fair bit about
working in a fast-paced environment,
providing quick, consistent customer
service to 2.5m people every day. We
worked with Locog for three years to
help them create the selection and
training programme for the volun-
teers.
We have extended our philosophy
to help people fulfil their potential by
offering a nationally recognised cus-
tomer service qualification to those
Games Makers who can benefit from
it most. This is a timely reminder to
employers of the appetite for recog-
nised training and qualifications.
Third, and just as important, is the
combination of passion and pride
that comes when you see you are
making a difference, even to a huge
event like London 2012.
Seats were given up on Tubes for
Games Makers. That instantaneous
feedback and response increased
their desire to deliver better hospital-
ity. They fed off the reaction of their
customers, which inspired them to
do an even better job.
Businesses always do better when
they consider the impact of customer
feedback on their own performance.
We will all do well to spend time
thinking how we can ignite a little of
the Games Maker spirit in our own
organisations.
Jill McDonald is chief executive officer of
McDonalds UK.
JILL MCDONALD
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in our employees
28
cityam.com
T
HE Eurozone waits with
bated breath as its fate is,
once again, in the hands of
its divided politicians. After
Mario Draghi, European Central
Bank (ECB) president, last week
announced Outright Monetary
Transactions (or OMT) another
acronym to add to the
burgeoning Eurozone lexicon
traders were elated, sending
shares in European stocks to six-
month highs.
However, the policy has gone
down like a lead zeppelin in
Germany, where newspapers on
both sides of the political spec-
trum panned Chancellor Angela
Merkel for supporting it. A blank
cheque for debtor states
exclaimed Bild, warning that
Draghis policies could make the
euro kaput.
Merkel continues to publically
support Draghi; Jens Weidmann,
Bundesbank president, does not,
claiming that the OMT is danger-
ously close to monetising sover-
eign debt, which is illegal under
current European law.
Weidmann was the only ECB
board member to vote against the
OMT. It is rumoured that he had
previously threatened to resign in
retaliation to the ECBs loose
monetary stance, as did his pred-
ecessor, Axel Weber, in April 2011.
These nuances of German poli-
tics are significant: tomorrow, its
constitutional court, based in
Karlsruhe, rules on the legality of
the European Stability
Mechanism (ESM), the 500bn
permanent bailout fund and suc-
cessor to the European Financial
Stability Facility (EFSF), the tem-
porary 440bn facility, due to
expire next year.
Due to concerns as to whether
the ESM is compatible with the
Treaty of Lisbon, Germany pro-
Stakes raised ahead of
crunch day for Europe
Merkel is feeling the heat
The Eurozones fate
rests in the hands of
its politicians, writes
Yogesh Chandarana
TRADING MANAGEMENT WEALTH
THE TIPSTER
Raise your glass to JD Wetherspoon
MP, Peter Gauweiler, lodging a
complaint at Germanys top
court, urging the constitutional
court to delay their ESM decision
until the ECB has withdrawn its
commitment to OMT: The ESM,
insofar as it is constitutionally
viable at all, should only come
into force when the ECB has
taken back its self-awarded power
as a hyper rescue-shield, a state-
ment said.
The stakes have been raised fur-
ther by the prospect of
Eurosceptic parties prevailing in
Dutch elections tomorrow. The
outcome is far from certain, with
analysts predicting an eventual
coalition government. A growing
tone of scepticism in Holland, a
key creditor nation within the
Eurozone, could further con-
strain options to try to deal with
the crisis.
When the ball is in the court of
Europes politicians, all bets are
off: uncertainty remains the only
game in town.
posed an amendment, which
requires a change in the Basic
Law (Germanys constitution).
The Basic Law stipulates that only
German parliament can control
national budgets and limits the
influence of foreign entities.
Clearly, the ESM and the fiscal
compact go against the grain of
the constitution: they could
require intervention to limit
national debt and budget deficits
if a country faced financial diffi-
cultly and requested assistance.
The ESM requires 90 per cent of
those who are committing capi-
tal to ratify it. If the constitution-
al court does not give it the
rubber stamp, the ECBs ability to
buy bonds would be undermined.
The euphoria that the markets
enjoyed last week would evapo-
rate in an instant, unwinding the
ECBs rescue efforts.
Nothing is ever straightforward
as far as the Eurozone is con-
cerned. Matters have been fur-
ther complicated by a German
fx360.com
US DATA POINTS TO A BURST
OF QE FROM BEN BERNANKE
G
LOBAL equities rallied sharply last
week, with most of the gains coming
after the European Central Bank
(ECB) president, Mario Draghi,
spoke on Thursday. There was
nothing in Draghis statement that had not
been telegraphed to the markets in advance.
Nevertheless, investors piled into risk
assets as the ECB president backed-up his
earlier promise that the central bank stands
ready to do whatever it takes to save the
euro. However, it is worth noting that the new
Outright Monetary Transactions (OMT)
programme is not like the full-blown
quantitative easing programmes of the US
Federal Reserve, Bank of Japan or Bank of
England. Rather than adding liquidity, OMT
just shifts it around. Although future ECB
bond purchases are potentially unlimited they
will be sterilised, which means, for example,
that the ECB can sell German debt to buy
Spanish debt. This should be a concern to
those stronger members of the Eurozone, as
it means that their bond yields will rise if the
ECB acts aggressively to suppress the debt
yields of vulnerable countries.
Conditions will be attached to any country
that receives this form of aid. Draghi stated
that the ECB would stop buying bonds if the
subject country fails to meet its targets and
thereby breaks conditionality rules. So there
is an implicit limit to these unlimited
purchases. But what happens to yields if the
ECB suddenly stops buying a troubled
countrys bonds? No doubt Draghi is hoping
that the ECBs resolve will never be tested.
Mark Grant, author of the popular Out of the
Box market commentary, made a number of
interesting points about the ECBs latest
statement. He notes that countries have to
request a bailout which has to be agreed to
by the EU, and perhaps the IMF, too. The
country requesting a bailout will then be
subject to an outside audit. This audit may
show that the countrys finances (and those
of its banks) are in a worse condition than its
own official numbers indicate. This was the
case for Greece, Ireland and Portugal, and
there is no reason to think that Spain or Italy
will fare any better. Grant believes that this
could be the reason why Spain has resisted
asking for a full bailout so far.
Secondly, the ECB has said it will not
activate the OMT without the approval of the
stabilisation funds (the European Financial
Stability Facility and European Stability
Mechanism). Grant makes the point that there
are countries within the Eurozone (such as
Austria and the Netherlands) that could
refuse any further requests for help.
Consequently, wrangling and arm-twisting to
force agreement from all Eurozone member
countries could scupper ECB bond purchases.
We shall see. Of course, a formal request for
help implies loss of sovereignty something
that will not go down well with Spanish
citizens, just as it is not going down well
in Greece.
On Friday, we saw the latest US non-farm
payroll numbers. The dismal sub 100,000
reading, together with a substantial
downward revision to the prior months data,
has boosted expectations that the Fed will
announce further stimulus measures on
Thursday at the conclusion of its two day
meeting. One of the main headlines from Ben
Bernankes Jackson Hole speech was that the
Fed saw the stubbornly high level of US
unemployment as a grave concern.
Additionally, members of the US Federal
Reserve, including chairman Bernanke, have
indicated that monthly payroll growth below
100,000 would be a problem for the central
bank as it impinges on its mandate to
maximise employment. The question now is
whether the Fed waits to see if this weakness
persists, effectively closing the window for
QE until after the presidential election, or if
they take decisive action now.
So, no pressure, Ben. But is another
controversial round of quantitative easing
really justified when US equity markets are
trading at multi-year highs and bond yields
are close to record lows?
S&P 500
2010 2011 Apr Jul Oct 2012 Apr Jul
1,400
1,350
1,300
1,200
1,250
1,150
1,100
twitter.com/fx360 facebook.com/fx360
The contents of this column are provided for general information purposes only. One should consider the appropriateness
of the information in light of their own objectives, financial situation or needs before trading. CD11UK.074.010612
DAVID MORRISON
SENIOR MARKET STRATEGIST, GFT
T
RADERS have been
questioning JD
Wetherspoon, after the
companys share price
stumbled over the last few weeks.
However, there is optimism about
the full-year results, due this week,
as the European football
championships are expected to have
helped the pub chain. Shares hit
year-highs above 480p in August,
and the firm is expected to report a
15 per cent rise in profits towards
70m. Spreadex quotes a price of
459.1-463.2p for JD Wetherspoon.
The wet summer may have
impacted the performance of B&Q
owner Kingfisher. The retailer
announces its interim results for the
last six months tomorrow. Margins
may be hit, as the retailer heavily
discounted products earlier in the
year. CMC Markets quotes a price of
280.86-281.52p for Kingfisher.
Investors can be forgiven for
approaching todays trading
statement from SuperGroup, the
retailer aimed at twenty-somethings,
with some trepidation. The shocks
over the last couple of years have
seen the value of its shares fall by 50
per cent since September 2011.
However, recent performance has
allayed some concerns and there has
been an impressive recovery in its
share price. IG Index quotes a price
of 527.5-535p for SuperGroup.
Kazakhmys has had an arduous
time of late with falling iron ore
prices and concerns about a Chinese
slowdown. However, the natural
resource company has seen a
reversal in its fortunes as investors
hunt for bargains. Although demand
has pushed shares up in recent days,
they are still relatively cheap
considering that the share price is
down 30 per cent this year. Spread
Co quotes 681.55-682.55p for
Kazakhmys.
YOGESH CHANDARANA
G
R
A
P
H
I
C
:

R
E
U
T
E
R
S
A further round of QE may have less of an impact on crude prices
equities. But just how much of a boost
that move would give to risk-on trades is
open to debate. The European Central
Bank agreed last week to ramp up bond
purchases to try to plug the holes in the
Eurozone; and the Fed already has two
progressively larger rounds of quantita-
tive easing (QE) under its belt. As such,
the markets have a certain level of stimu-
lus fatigue. When the Fed launched its
first QE programme between April 2009
and March 2010, oil prices rocketed 71
percent. But in the second round,
between November 2010 and July 2011,
they rose a more restrained 21 per cent.
This is admittedly still quite a return on
investment, but this period also coincid-
ed with the Arab Spring when there were
oil supply disruptions and political insta-
bility in many of the worlds largest oil
producing states.
POLITICAL MOVES
But while oil bulls may be flaring their
nostrils at the prospect of monetary stim-
My pick: Short Aussie-dollar
Expertise: Fundamental and technical analysis
Average time frame of trades: 1 day to 1 week
ANALYST PICKS
Oil trading on hopes of stimulus
T
HOUGH oil is in the middle of
a bullish trend, prices find
themselves pushed and pulled
between potential stimulus
measures, that could drive price on
the upside, and the threat of
oversupply, dragging the price back
down.
STIMULUS HOPES
With weak macro data coming out
of China and markets on tenter-
hooks in anticipation of the US
Federal Reserve meeting later in the
week, oil has been pushed to one
week highs around the $96 a barrel
mark. This has been driven by specu-
lation that one, or both, of the eco-
nomic superpowers will roll out
stimulus measures to get their
economies moving again.
A third round of quantitative eas-
ing from the Fed would trigger a
bout of risk-on trading driving oil
prices higher, as well as gold and
QUANTITATIVE STRATEGIST
DAVID RODRIQUEZ
My pick: Scale back Aussie-dollar short
Expertise: System trading
Average time frame of trades: 2 days to 10 weeks
I will continue scaling in and out of Aussie-dollar short
positions, as long as the price remains below the multi-week
highs of Au$1.0550. However, the recent break above
Au$1.0350 leaves me in a small residual position. I am not
convinced that the sudden downturn is over, but I do not
think that it would be wise to add to the position amid a
major weekly reversal. The August high of Au$1.0610 is the
line that I will draw in the sand.
CHIEF STRATEGIST
JOHN KICKLIGHTER
My pick: Long euro-Canadian dollar, euro-Swissie, and dollar-yen
Expertise: Fundamental and technical analysis
Average time frame of trades: 1 day to 1 week
There is tremendous potential to trade, but conditions still
support breakout and short-term swing setups. With so much
event risk and speculation on stimulus, Im looking to pairs that
can find short-term follow-through on good breaks. I like euro-
Canadian dollar above Ca$1.2550 in a risk-off or euro rally
scenario. Euro-Australian dollar breaking below Au$1.2225 is
the opposite. Given the upcoming Fed decision, I like a dollar-
yen break from 78-78.25. And, euro-Swissie is finally climbing.
ulus measures, they are less happy
about the potential for another form
of stimulus that could be on the hori-
zon. White House officials met last
week to discuss the possibility of a
release from the US Strategic
Petroleum Reserve (SPR) to rein in high
gasoline and crude prices. The SPR cur-
rently holds around 700m barrels of
crude. With the US presidential elec-
tions less than two months away, a
move to bring down prices on the fore-
court would have an obvious attrac-
tion for the Obama administration.
For those trading oil in the short
term, this week is going to be all about
news-driven markets rather than fun-
damentals. Should the Fed roll out
QE3, its boost to oil prices will likely
swamp out any chatter of a SPR release
and the impact of oversupply on
prices. Like the rest of the markets, oil
traders will be betting on Bernankes
words on Thursday, rather than the
contents of Saudis pipelines.
29
cityam.com
CURRENCY STRATEGIST
CHRIS VECCHIO
Despite the rebound, Aussie-dollar has pulled back to respect a
former channel, reversing some of its gains from the Chinese
stimulus measures announced last week. Accordingly, topside
resistance comes in at Au$1.0350-55 (20-day moving average),
Au$1.0365-70 (channel resistance) and Au$1.0410-20 (mid-
August swing lows). A breakdown eyes Au$1.0275-1.0300,
Au$1.0210-25 and Au$1.0160-75 (weekly lows). If the Fed
announces QE3 on Thursday, close the position.
Prices are set to be driven by monetary policy, writes Craig Drake
Oil and Gold Prices
Sep
2007
Sep
2008
Sep
2009
Sep
2010
Sep
2011
Sep
2012
150
$perbarrel $perOunce
140
130
120
110
100
90
80
70
60
50
40
30
2,100
1,900
1,700
1,500
1,300
1,100
900
700
Brent
oil price
Gold
QE1 QE2
Operation
Twist
30
MARKETS
cityam.com
LON GD ONCE FIX AM...................................1732.75 36.75
SILVERLDN FIX AM.........................................33.70 0.24
MAPLE LEAF 1 OZ ............................................35.85 -0.06
LON PLATINUM AM .....................................1596.00 17.00
LON PALLADIUM AM.....................................661.00 16.00
ALUMINIUM CASH........................................1987.50 25.50
COPPER CASH.............................................7843.50 173.50
LEAD CASH.................................................2061.00 26.00
NICKEL CASH.............................................16150.00 50.00
TIN CASH..................................................19955.00 400.00
ZINC CASH...................................................1914.50 42.00
BRENT SPOT INDEX........................................113.99 -0.15
SOYA ...........................................................1744.50 0.00
COCOA ........................................................2744.00 0.00
COFFEE...........................................................157.90 0.00
KRUG..........................................................1798.00 30.50
WHEAT.........................................................206.38 0.62
AIR LIQUIDE ......................................................95.91 -0.61 97.89 74.37
ALLIANZ ...........................................................92.86 0.52 94.94 56.16
ANHEUS-BUSCHINBEV.....................................66.18 -1.91 71.05 35.80
ARCELORMITTAL ................................................12.48 0.06 17.96 10.47
ASML HOLDING.................................................43.87 -0.05 48.34 24.01
AXA...................................................................12.35 0.02 13.25 7.88
BANCO SANTANDER...........................................6.07 -0.01 6.19 3.98
BASF SE.............................................................64.13 -0.07 68.63 42.19
BAYER...............................................................64.41 -0.81 65.82 35.57
BBVA..................................................................6.49 -0.02 7.20 4.31
BMW.................................................................58.53 0.50 73.95 43.49
BNP PARIBAS.....................................................38.17 0.39 39.48 22.72
CARREFOUR......................................................16.86 -0.13 20.51 12.87
CRH PLC .............................................................15.10 0.30 16.93 10.28
DAIMLER...........................................................38.77 -0.33 48.95 29.02
DANONE ...........................................................49.38 -0.42 54.96 41.92
DEUTSCHE BANK ...............................................31.85 0.49 39.51 20.79
DEUTSCHE TELEKOM...........................................9.64 -0.03 9.82 7.69
E.ON..................................................................19.06 0.01 19.16 12.50
ENEL ...................................................................2.83 -0.01 3.62 2.02
ENI.....................................................................17.86 -0.13 18.72 11.89
ESSILOR INTERNAT............................................72.27 -0.10 75.52 50.30
FRANCE TELECOM..............................................10.43 -0.18 13.60 9.45
GDF SUEZ..........................................................19.50 0.06 24.13 15.62
GENERALI ASS....................................................12.31 0.04 13.70 8.16
IBERDROLA..........................................................3.51 -0.08 5.08 2.63
INDITEX............................................................89.00 -0.13 96.50 57.10
ING GROEP CVA..................................................6.68 -0.01 7.58 4.21
INTESA SANPAOLO...............................................1.35 -0.01 1.65 0.85
KON.PHILIPS ELECTR .........................................19.03 -0.46 19.56 12.01
L'OREAL............................................................96.82 -1.29 102.50 68.83
LVMH...............................................................132.25 -0.60 136.80 94.16
MUNICHRE......................................................120.75 0.45 121.95 77.80
NOKIA................................................................2.09 0.03 5.19 1.33
REPSOL..............................................................15.58 -0.12 23.18 10.90
RWE ..................................................................35.31 0.11 37.12 21.15
SAINT-GOBAIN.................................................29.08 -0.17 37.63 23.90
SANOFI .............................................................65.72 -0.43 68.81 45.52
SAP....................................................................53.51 -0.28 54.85 34.57
SCHNEIDER ELECTRIC.........................................51.25 -1.07 53.47 35.00
SIEMENS............................................................77.70 0.32 79.89 62.13
SOCIETE GENERALE............................................24.41 -0.09 25.97 14.32
TELEFONICA .......................................................11.08 -0.11 15.55 7.90
TOTAL ...............................................................40.45 -0.10 42.97 29.40
UNIBAIL-RODAMCO SE....................................163.00 -0.30 165.85 123.30
UNICREDIT ..........................................................3.67 0.01 7.01 2.20
UNILEVER CVA ...................................................27.41 -0.48 28.83 21.87
VINCI.................................................................35.70 0.24 40.85 28.46
VIVENDI ............................................................15.66 0.01 17.06 12.02
VOLKSWAGEN VORZ .......................................142.00 0.70 148.90 86.40
Price Chg High Low
EU SHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . . . . . . . . 5793.20 -1.60 -0.03
FTSE 250 INDEX . . . . . . . . . . . . . . . 11841.50 33.49 0.28
FTSE UK ALL SHARE . . . . . . . . . . . . 3024.48 0.49 0.02
FTSE AIM ALL SH. . . . . . . . . . . . . . . . 699.93 2.48 0.36
DOWJONES INDUS 30 . . . . . . . . . 13254.29 -52.35 -0.39
S&P 500 . . . . . . . . . . . . . . . . . . . . . 1429.08 -8.84 -0.61
NASDAQ COMPOSITE. . . . . . . . . . . . 3104.02 -32.40 -1.03
FTSEUROFIRST 300 . . . . . . . . . . . . . 1103.55 -3.17 -0.29
NIKKEI 225 . . . . . . . . . . . . . . . . . . . 8869.37 -2.28 -0.03
DAX 30 PERFORMANCE . . . . . . . . . . 7213.70 -0.80 -0.01
CAC 40 . . . . . . . . . . . . . . . . . . . . . . 3506.05 -13.00 -0.37
SHANGHAI SE INDEX. . . . . . . . . . . . 2134.89 7.13 0.34
HANG SENG . . . . . . . . . . . . . . . . . . 19827.17 25.01 0.13
S&P/ASX 20 INDEX. . . . . . . . . . . . . 2655.00 7.80 0.29
ASX ALL ORDINARIES. . . . . . . . . . . 4358.00 9.20 0.21
BOVESPA SAO PAOLO . . . . . . . . . . 58404.10 82.86 0.14
ISEQ OVERALL INDEX . . . . . . . . . . . 3263.29 1.39 0.04
STRAITS TIMES . . . . . . . . . . . . . . . . 3008.72 -2.98 -0.10
IGBM . . . . . . . . . . . . . . . . . . . . . . . . . 795.18 -1.94 -0.24
SWISS MARKET INDEX . . . . . . . . . . 6507.87 -29.45 -0.45
Price Chg %chg
3M....................................................................90.67 -2.15 94.30 68.63
ABBOTT LABS ....................................................67.19 0.50 67.45 48.96
ALCOA................................................................9.05 -0.05 12.34 7.97
ALTRIA GROUP .................................................34.45 0.18 36.29 25.27
AMAZON.COM.................................................257.09 -2.05 260.00 166.97
AMERICAN EXPRESS .........................................57.52 -0.21 61.42 41.30
AMGEN INC ......................................................84.05 0.09 85.28 52.85
APPLE.............................................................662.74 -17.70 683.29 354.24
AT&T..................................................................37.42 0.12 38.28 27.29
BANK OF AMERICA.............................................8.58 -0.22 10.10 4.92
BOEING CO........................................................71.08 -1.81 77.83 56.90
CATERPILLAR.....................................................87.10 -1.00 116.95 67.54
CHEVRON ........................................................113.96 -0.04 114.54 86.68
CISCO SYSTEMS ..................................................19.15 -0.41 21.30 14.93
CITIGROUP ........................................................31.83 -0.24 38.40 21.40
COCA-COLA.......................................................37.66 -0.24 40.67 31.67
COMCAST CLASS A.............................................34.17 -0.29 35.16 19.72
CONOCOPHILLIPS ..............................................56.18 -0.46 79.96 50.62
CVS/CAREMARK................................................46.19 0.13 48.69 32.28
DU PONT(EI) DE NMR.......................................50.63 0.07 57.50 37.10
EBAY.................................................................48.53 -0.71 49.27 27.41
EXXON MOBIL...................................................89.48 -0.44 90.00 67.93
GENERAL ELECTRIC............................................21.48 -0.11 21.65 14.02
GOOGLE A.......................................................700.77 -5.38 712.81 480.60
HEWLETT PACKARD...........................................17.43 0.01 30.00 16.77
HOME DEPOT ....................................................57.30 0.04 57.89 31.03
IBM................................................................200.95 1.45 210.69 158.76
INTEL CORP.......................................................23.26 -0.93 29.27 19.52
J.P.MORGAN CHASE ..........................................38.76 -0.54 46.49 27.85
JOHNSON & JOHNSON......................................68.18 0.30 69.75 55.76
KRAFT FOODS A................................................40.21 0.22 42.44 31.88
MC DONALD'S CORP..........................................91.30 0.28 102.22 83.65
MERCK AND CO. NEW......................................44.26 0.21 45.17 30.54
MICROSOFT.......................................................30.72 -0.23 32.95 24.26
OCCID. PETROLEUM ..........................................86.32 -0.83 106.68 66.36
ORACLE CORP....................................................32.31 -0.29 33.81 24.91
PEPSICO............................................................71.84 -0.26 73.66 58.50
PFIZER ..............................................................24.10 -0.14 24.49 16.82
PHILIP MORRIS INTL.........................................88.62 -0.21 93.60 60.45
PROCTER AND GAMBLE.....................................68.51 -0.01 68.60 59.07
QUALCOMM INC.................................................61.29 -0.64 68.87 46.40
SCHLUMBERGER...............................................72.69 -0.48 80.78 54.79
TRAVELERS CIES................................................65.31 0.10 65.72 45.97
UNITED TECHNOLOGIE.......................................78.61 -0.80 87.50 66.87
US BANCORP DELAWRE....................................33.83 -0.15 34.17 21.49
VERIZON COMMS..............................................44.06 0.34 46.41 34.65
VISA CL A........................................................128.68 -1.03 132.58 81.71
WAL-MART STORES...........................................73.51 -0.31 75.24 49.94
WALT DISNEY CO...............................................51.52 -0.22 52.00 28.19
WELLS FARGO & CO..........................................34.59 -0.41 35.19 22.61
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 ...............................0.020 0.00
LIBOR Euro - 12 months...............................0.722 -0.01
LIBOR USD - overnight .................................0.152 0.00
LIBOR USD - 12 months .................................1.017 0.00
Halifax mortgage rate ................................3.990 -0.02
Euro Base Rate ............................................0.750 0.00
Finance house base rate .............................1.000 0.00
US Fed funds ...............................................0.260 0.00
US long bond yield......................................2.830 0.01
European repo rate .....................................0.010 0.00
Euro Euribor ................................................0.088 0.00
The vix index.................................................14.71 -0.33
The baltic dry index ....................................669.0 0.00
Markit iBoxx...............................................254.46 -1.22
Markit iTraxx...............................................125.65 2.17
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
US SHARES
BAE Systems . . . . . . . . .327.7 -4.8 333.8 251.4
Chemring Group . . . . . .330.6 0.3 552.5 267.3
Cobham . . . . . . . . . . . . .219.8 1.1 239.5 165.9
Meggitt . . . . . . . . . . . . .409.5 2.2 413.5 304.9
QinetiQ Group . . . . . . . .172.8 -0.7 174.5 113.3
Rolls-Royce Holdi . . . . .828.0 0.5 890.0 571.0
Senior . . . . . . . . . . . . . . .211.3 0.8 213.0 135.6
Ultra Electronics . . . . .1545.0 -3.0 1780.0 1398.0
GKN . . . . . . . . . . . . . . . .224.0 0.1 235.5 157.0
Bank of Georgia H . . . .1320.0 73.0 1330.0 929.8
Barclays . . . . . . . . . . . . .207.8 1.4 256.8 138.9
HSBC Holdings . . . . . . .563.7 0.2 581.7 463.5
Lloyds Banking Gr . . . . . .37.0 0.0 37.6 21.8
Royal Bank of Sco . . . . .253.0 8.5 291.7 173.4
Standard Chartere . . . .1425.0 0.0 1662.5 1169.5
Barr (A.G.) . . . . . . . . . . .458.4 -9.6 481.6 348.0
Britvic . . . . . . . . . . . . . .359.8 3.8 398.0 260.1
Diageo . . . . . . . . . . . . .1695.5 -6.5 1764.5 1191.0
SABMiller . . . . . . . . . .2700.0 -62.5 2868.5 2005.0
AZ Electronic Mat . . . . .323.0 -6.0 332.0 206.1
Croda Internation . . . .2429.0 -30.0 2466.0 1597.0
Elementis . . . . . . . . . . .230.2 2.1 233.0 107.5
Johnson Matthey . . . .2432.0 -6.0 2459.0 1522.5
Victrex . . . . . . . . . . . . .1387.0 13.0 1516.0 1025.0
Yule Catto & Co . . . . . . .166.4 -3.5 251.0 127.4
/$ 1.2794 0.0023
/ 0.7989 0.0009
/ 100.11 0.1696
/ 1.2518 0.0014
/$ 1.6016 0.0011
/ 125.31 0.0537
FTSE 100
5793.20
1.60
FTSE 250
11841.50
33.49
FTSE ALL SHARE
3024.48
0.49
DOW
13254.29
52.35
NASDAQ
3104.02
32.40
S&P500
1429.08
8.84
Brown (N.) Group . . . . .282.7 3.7 291.0 222.4
Carpetright . . . . . . . . . .670.0 -5.0 728.5 375.0
Debenhams . . . . . . . . .100.0 -0.4 101.4 51.2
Dignity . . . . . . . . . . . . .930.0 9.0 935.0 755.5
Dixons Retail . . . . . . . . .20.3 1.0 20.4 9.4
DunelmGroup . . . . . . .599.5 20.0 614.0 421.1
Halfords Group . . . . . . .254.4 6.3 342.3 189.0
Home Retail Group . . . .99.6 0.5 131.6 69.2
Inchcape . . . . . . . . . . . .388.4 1.4 418.2 268.1
JD Sports Fashion . . . . .723.5 62.0 865.0 570.0
Kingsher . . . . . . . . . . .281.7 2.9 313.8 232.1
Marks & Spencer G . . . . .371.1 9.9 389.5 302.7
Next . . . . . . . . . . . . . . .3563.0 -25.0 3644.0 2310.0
Sports Direct Int . . . . . .332.3 1.3 334.6 190.0
Ted Baker . . . . . . . . . . .970.0 12.0 1017.0 633.0
WHSmith . . . . . . . . . . .610.0 0.0 615.0 471.7
NMC Health . . . . . . . . . .190.0 -3.0 230.0 186.0
Smith & Nephew . . . . .678.5 -2.0 685.0 540.5
Synergy Health . . . . . . .913.0 3.0 951.0 762.5
Barratt Developme . . . .173.3 4.2 174.8 72.9
Bellway . . . . . . . . . . . . .950.0 11.5 953.8 559.0
Berkeley Group Ho . . .1500.0 0.0 1508.0 1145.0
Bovis Homes Group . . .504.5 4.5 518.5 388.2
Balfour Beatty . . . . . . .298.6 -1.1 311.0 214.6
CRH . . . . . . . . . . . . . . .1206.0 28.0 1420.0 1052.0
Galliford Try . . . . . . . . .670.0 -3.0 677.7 405.0
Kier Group . . . . . . . . . .1334.0 18.0 1489.0 1095.0
Drax Group . . . . . . . . . .497.7 11.9 581.5 442.0
SSE . . . . . . . . . . . . . . . .1363.0 5.0 1445.0 1209.0
Dialight . . . . . . . . . . . . .1188.0 4.0 1209.0 685.0
Domino Printing S . . . .565.0 -4.0 670.0 434.3
Halma . . . . . . . . . . . . . .425.1 7.3 431.9 306.3
Laird . . . . . . . . . . . . . . .230.5 -10.1 240.6 128.5
Morgan Crucible C . . . .283.0 0.8 360.0 224.0
Oxford Instrument . . .1365.0 -22.0 1393.1 714.0
Renishaw . . . . . . . . . . .1622.0 -2.0 1645.2 800.0
Spectris . . . . . . . . . . . .1800.0 1.0 1902.0 1039.0
Aberforth Smaller . . . .639.5 3.0 665.0 494.0
Alliance Trust . . . . . . . . .367.1 0.1 378.2 310.2
Bankers Inv Trust . . . . . .417.0 -3.0 433.8 346.5
BH Global Ltd. GB . . . . .1154.0 4.0 1212.0 1135.0
BH Global Ltd. US . . . . . . .11.5 -0.1 12.2 11.1
BH Macro Ltd. EUR . . . . . .18.8 -0.1 20.2 18.3
BH Macro Ltd. GBP . . .1945.0 0.0 2078.0 1892.0
BH Macro Ltd. USD . . . . . .18.6 -0.2 20.2 18.2
BlackRock World M . . .566.0 -0.5 747.0 525.0
BlueCrest AllBlue . . . . .166.0 -0.4 171.5 160.5
British Assets Tr . . . . . . .121.2 0.0 130.0 109.0
British Empire Se . . . . . .433.1 -0.4 476.2 386.6
Caledonia Investm. . . .1413.0 -9.0 1599.0 1237.0
City of London In . . . . . .310.6 -1.2 314.1 258.0
Dexion Absolute L . . . . .136.0 -0.7 142.0 130.0
Edinburgh Dragon . . . .240.5 0.4 253.1 201.4
Edinburgh Inv Tru . . . . .513.5 -1.5 529.5 432.0
Electra Private E . . . . . .1671.0 -19.0 1750.0 1287.0
Fidelity China Sp . . . . . . .72.9 -0.6 88.9 70.0
Fidelity European . . . . .1171.0 -8.0 1179.0 912.0
Foreign and Colon . . . . .313.3 1.7 317.4 261.5
Herald Inv Trust . . . . . .505.0 6.0 525.5 419.0
HICL Infrastructu . . . . . .123.4 -0.3 123.9 114.5
John Laing Infras . . . . . .107.5 0.2 111.3 103.8
JPMorgan American . .940.0 -3.0 965.5 757.5
JPMorgan Asian In . . . . .178.5 0.1 205.0 170.0
JPMorgan Emerging . . .542.0 -1.5 583.0 480.1
JPMorgan Indian I . . . .330.0 -2.0 400.4 303.4
LawDebenture Cor . . .405.0 0.0 405.0 323.0
Mercantile Invest . . . .1036.0 4.0 1072.0 823.0
Merchants Trust . . . . . . .375.4 0.4 392.7 341.5
Monks Inv Trust . . . . . . .314.0 -0.1 343.6 298.1
Murray Income Tru . . . .677.5 3.0 685.0 568.0
Murray Internatio . . . .1008.0 1.0 1022.0 818.5
NB Global Floatin . . . . . .99.4 -0.4 100.8 92.5
Perpetual Income . . . .276.5 -0.5 283.0 236.5
Personal Assets T . . . .35190.0 -10.0 36000.0 32340.0
Polar Capital Tec . . . . . .397.9 -2.6 404.0 307.0
RIT Capital Partn . . . . .1185.0 0.0 1360.0 1096.0
Scottish Inv Trus . . . . . .478.0 0.0 495.5 417.0
Scottish Mortgage . . . .700.0 1.5 719.0 565.0
SVG Capital . . . . . . . . . .283.5 2.9 295.5 165.1
Temple Bar Inv Tr . . . . .965.0 0.0 970.0 794.0
Templeton Emergin . . .547.5 -4.0 633.5 497.0
TRProperty Inv T . . . . . .159.2 -1.6 173.9 136.2
TRProperty Inv T . . . . . .72.0 1.9 76.3 59.8
Utilico Emerging . . . . .165.0 0.0 169.5 133.8
Witan Inv Trust . . . . . . .482.9 -0.1 505.5 401.5
Worldwide Healthc . . .838.0 0.0 838.5 671.5
3i Group . . . . . . . . . . . . .222.7 1.4 223.4 166.9
3i Infrastructure . . . . . . .125.1 -0.2 128.0 117.0
Aberdeen Asset Ma . . .288.4 0.5 289.7 167.8
Ashmore Group . . . . . .339.7 2.7 410.3 306.4
Brewin Dolphin Ho . . . .156.4 0.9 177.0 113.7
Camellia . . . . . . . . . . .9948.0 47.0 10250.0 8800.0
Charles Taylor . . . . . . . .180.0 2.5 187.0 115.6
City of London Gr . . . . . .76.5 0.0 81.0 61.3
City of London In . . . . .336.3 -3.8 390.0 304.3
Close Brothers Gr . . . . .820.5 0.0 830.0 590.0
F&C Asset Managem . . . .91.8 -0.2 92.7 56.1
Hargreaves Lansdo . . . .653.5 6.0 660.5 412.2
Helphire Group . . . . . . . . .0.8 0.0 3.2 0.7
Henderson Group . . . . . .112.7 2.7 128.3 90.6
Highway Capital . . . . . . .17.0 0.0 17.0 12.0
ICAP . . . . . . . . . . . . . . . .343.4 -1.5 475.5 301.1
IG Group Holdings . . . .433.4 -1.2 502.5 409.4
Intermediate Capi . . . .302.3 3.8 303.9 197.9
International Per . . . . .324.3 1.7 329.4 148.5
International Pub . . . . .123.7 -0.3 124.9 112.9
Investec . . . . . . . . . . . . .392.9 -2.9 414.9 310.4
IP Group . . . . . . . . . . . . .130.5 0.3 155.0 43.5
Jupiter Fund Mana . . . .246.8 -0.2 256.7 188.5
Liontrust Asset M . . . . . .97.5 0.0 125.0 57.9
LMS Capital . . . . . . . . . . .63.0 -2.0 68.8 54.0
London Finance & . . . . .19.5 0.0 23.5 18.0
London Stock Exch . . .1016.0 -3.0 1093.0 756.5
Lonrho . . . . . . . . . . . . . . . .8.4 0.2 15.5 6.7
Man Group . . . . . . . . . . .83.9 3.3 240.1 63.3
Paragon Group Of . . . .199.2 -5.4 205.0 142.0
Provident Financi . . . .1369.0 28.0 1369.1 915.0
Rathbone Brothers . . .1353.0 3.0 1373.0 989.0
Real Estate Credi . . . . . . .88.9 -0.1 109.0 79.5
Record . . . . . . . . . . . . . . .16.1 -0.4 29.6 9.8
S & U . . . . . . . . . . . . . . .855.0 7.5 870.0 597.5
Schroders . . . . . . . . . . .1513.0 7.0 1650.0 1166.0
Tullett Prebon . . . . . . . . .311.1 -4.4 386.4 260.0
Walker Crips Grou . . . . . .36.5 0.0 49.0 33.5
BT Group . . . . . . . . . . . .228.8 0.8 242.3 163.8
Cable & Wireless . . . . . .34.3 -0.2 45.2 27.3
COLT Group SA . . . . . . . .122.4 0.4 127.4 84.1
KCOM Group . . . . . . . . . .82.0 0.7 82.6 65.6
TalkTalk Telecom . . . . . .191.7 -1.7 196.6 118.9
TelecomPlus . . . . . . . . .839.0 4.0 890.0 612.0
Booker Group . . . . . . . . .93.2 -0.3 95.9 68.6
Greggs . . . . . . . . . . . . .486.7 -3.4 558.0 457.0
Morrison (Wm) Sup . . . .291.1 -0.9 328.0 263.0
Ocado Group . . . . . . . . . .70.0 1.4 133.7 52.9
Sainsbury (J) . . . . . . . .330.6 -0.7 332.5 263.5
Tesco . . . . . . . . . . . . . . .343.6 -3.5 411.3 297.1
Associated Britis . . . . .1280.0 -26.0 1336.0 1059.0
Cranswick . . . . . . . . . . . .813.5 -16.5 858.0 588.5
Dairy Crest Group . . . . .344.0 -13.2 358.7 290.4
Devro . . . . . . . . . . . . . . .314.8 -1.2 332.2 232.0
Tate & Lyle . . . . . . . . . .639.0 4.5 720.5 590.0
Unilever . . . . . . . . . . . .2245.0 -30.0 2334.0 1922.0
Mondi . . . . . . . . . . . . . .591.0 1.5 617.5 413.5
Centrica . . . . . . . . . . . . .332.5 -2.8 335.3 278.8
National Grid . . . . . . . . .681.0 -11.5 703.5 597.5
Pennon Group . . . . . . .735.0 -7.0 796.0 659.5
Severn Trent . . . . . . . .1690.0 -26.0 1796.0 1432.0
United Utilities . . . . . . .687.0 -14.0 728.0 582.0
Cookson Group . . . . . . .612.0 4.0 747.5 395.8
Rexam . . . . . . . . . . . . . .423.3 -2.6 444.6 299.8
RPC Group . . . . . . . . . . .436.0 6.0 438.0 307.5
Smith (DS) . . . . . . . . . . .180.0 1.0 183.7 113.3
Smiths Group . . . . . . .1048.0 -10.0 1113.0 869.5
Price Chg High Low
Persimmon . . . . . . . . . .760.0 4.0 766.0 430.2
Reckitt Benckiser . . . .3606.0 -34.0 3679.0 3100.0
Redrow . . . . . . . . . . . . .150.0 -0.1 155.1 90.2
Taylor Wimpey . . . . . . . .58.0 0.9 58.7 29.9
Bodycote . . . . . . . . . . . .389.4 6.8 437.1 225.6
Fenner . . . . . . . . . . . . .364.0 3.5 483.7 280.0
IMI . . . . . . . . . . . . . . . . .913.0 7.5 1022.0 636.5
Melrose . . . . . . . . . . . . . .251.1 -2.8 255.2 152.5
Rotork . . . . . . . . . . . . .2328.0 28.0 2341.0 1511.0
Spirax-Sarco Engi . . . .2126.0 91.0 2334.0 1708.0
Weir Group . . . . . . . . .1676.0 22.0 2236.0 1375.0
Evraz . . . . . . . . . . . . . . .260.2 -0.2 460.5 211.5
Ferrexpo . . . . . . . . . . . .196.5 13.7 378.4 147.5
Talvivaara Mining . . . . . .141.7 0.5 359.1 122.0
BBA Aviation . . . . . . . .202.9 1.7 218.8 159.6
Stobart Group Ltd . . . . .115.0 -0.7 137.0 110.3
Admiral Group . . . . . . .1131.0 -6.0 1382.0 787.0
Amlin . . . . . . . . . . . . . .394.2 -0.8 396.4 270.6
Beazley . . . . . . . . . . . . .165.0 -2.8 169.3 111.2
Catlin Group Ltd. . . . . . .471.2 1.2 471.3 337.0
Hiscox Ltd. . . . . . . . . . . .479.2 3.9 482.1 345.1
ITV . . . . . . . . . . . . . . . . . .88.7 0.7 89.9 51.7
Johnston Press . . . . . . . . .5.6 -0.3 7.9 4.1
MecomGroup . . . . . . . . .87.3 0.0 226.5 51.0
Moneysupermarket. . . .139.0 -1.9 144.8 93.4
Pearson . . . . . . . . . . . .1197.0 -4.0 1294.0 1060.0
PerformGroup . . . . . . .377.5 -3.4 421.0 190.0
Reed Elsevier . . . . . . . .601.5 0.0 605.0 467.9
Rightmove . . . . . . . . .1590.0 -9.0 1679.0 1180.0
STV Group . . . . . . . . . . . .86.4 2.4 119.5 76.3
Tarsus Group . . . . . . . . .179.8 -0.3 181.8 119.5
Trinity Mirror . . . . . . . . . .40.8 0.3 54.3 25.5
UBM . . . . . . . . . . . . . . . .712.0 15.0 714.5 416.0
UTVMedia . . . . . . . . . . .134.8 1.3 159.5 92.5
Wilmington Group . . . .106.8 -1.3 108.0 78.5
WPP . . . . . . . . . . . . . . .843.0 7.0 880.0 578.0
African Barrick G . . . . . .473.2 6.7 616.5 309.8
Anglo American . . . . .2001.5 29.0 2910.0 1748.5
Antofagasta . . . . . . . .1249.0 23.0 1399.0 900.5
Aquarius Platinum . . . . .37.0 0.7 226.8 34.5
Avocet Mining . . . . . . . . .91.7 -0.3 286.3 63.0
BHP Billiton . . . . . . . . .1910.0 4.0 2206.5 1667.0
Bumi . . . . . . . . . . . . . . .281.9 6.5 985.0 268.4
Centamin (DI) . . . . . . . . .84.8 2.3 115.3 60.7
Eurasian Natural . . . . .342.4 3.7 749.5 296.1
Fresnillo . . . . . . . . . . . .1756.0 32.0 2150.0 1307.0
Jardine Lloyd Tho . . . . .745.5 -6.5 790.0 616.0
Lancashire Holdin . . . . .813.5 6.0 825.0 630.5
RSA Insurance Gro . . . . .115.7 0.8 116.2 97.7
Aviva . . . . . . . . . . . . . . .351.7 4.0 382.6 255.3
Legal & General G . . . . .134.5 0.6 135.1 89.8
Old Mutual . . . . . . . . . . .172.6 0.7 188.1 112.1
Phoenix Group Hol . . . .501.0 2.5 590.0 405.3
Prudential . . . . . . . . . . .813.5 -3.5 824.0 509.0
Resolution Ltd. . . . . . . .214.3 3.7 287.2 190.3
St James's Place . . . . . .365.0 -5.6 375.0 294.0
Standard Life . . . . . . . . .275.5 -1.9 278.6 185.1
4Imprint Group . . . . . . .342.0 12.0 343.0 200.0
Aegis Group . . . . . . . . . .237.5 -0.1 238.0 115.7
Bloomsbury Publis . . . .133.0 -2.0 146.5 91.3
British Sky Broad . . . . .772.0 3.5 775.9 635.5
Centaur Media . . . . . . . .36.8 0.3 45.1 28.5
Chime Communicati . .208.5 -0.3 255.0 143.0
Creston . . . . . . . . . . . . . .92.5 3.5 96.8 47.0
Euromoney Institu . . . .769.5 -0.5 828.0 522.5
Future . . . . . . . . . . . . . . . .9.8 0.0 13.4 8.3
Haynes Publishing . . . .195.0 0.0 235.0 165.0
Hibu . . . . . . . . . . . . . . . . .0.6 -0.1 6.3 0.4
Huntsworth . . . . . . . . . .48.8 0.3 68.5 32.3
Informa . . . . . . . . . . . . .419.3 2.8 451.0 313.9
ITE Group . . . . . . . . . . . .214.8 2.5 240.6 157.7
GemDiamonds Ltd. . . . .177.6 4.6 310.6 156.1
Glencore Internat . . . . .370.0 -8.1 482.6 293.6
Hochschild Mining . . . .449.0 -6.3 534.0 365.9
Kazakhmys . . . . . . . . . .686.5 29.0 1214.0 570.0
Kenmare Resources . . . .40.8 0.6 61.5 31.0
Lonmin . . . . . . . . . . . . .619.0 23.0 1216.0 529.5
NewWorld Resourc . . .290.0 -5.0 598.0 268.9
Petra Diamonds Lt . . . . .99.4 -0.4 188.2 97.0
Petropavlovsk . . . . . . .394.0 16.0 884.0 347.9
Polymetal Interna . . . .1035.0 -9.0 1175.0 765.0
Randgold Resource . .7025.0 -25.0 7565.0 4596.0
Rio Tinto . . . . . . . . . . .3069.0 48.0 3988.0 2712.5
Vedanta Resources . . .1003.0 27.5 1502.0 832.5
Xstrata . . . . . . . . . . . . .1026.5 12.5 1283.0 764.0
Inmarsat . . . . . . . . . . . .589.0 -6.0 598.0 389.3
Vodafone Group . . . . . .176.6 -0.5 191.3 159.2
Genesis Emerging . . . .500.0 -5.5 522.0 424.0
Afren . . . . . . . . . . . . . . .138.2 0.3 150.0 73.6
BG Group . . . . . . . . . . .1280.0 10.5 1547.0 1144.0
BP . . . . . . . . . . . . . . . . . .437.8 3.1 504.6 372.0
Cairn Energy . . . . . . . . .289.9 -1.4 360.7 248.2
EnQuest . . . . . . . . . . . . .120.2 2.3 132.6 85.7
Essar Energy . . . . . . . . .106.7 3.0 326.4 99.1
Heritage Oil . . . . . . . . .209.3 1.3 247.0 115.1
Ophir Energy . . . . . . . .620.0 5.5 637.5 223.7
Premier Oil . . . . . . . . . .376.9 -10.5 449.7 318.4
Royal Dutch Shell . . . . .2231.5 1.0 2402.0 1928.5
Royal Dutch Shell . . . .2296.5 1.5 2489.0 1941.0
Ruspetro . . . . . . . . . . . . .114.7 -4.8 230.0 111.1
Salamander Energy . . .198.9 -2.4 212.9 148.0
Soco Internationa . . . . .335.3 -0.6 361.7 254.9
TullowOil . . . . . . . . . . .1386.0 -18.0 1601.0 1236.0
Amec . . . . . . . . . . . . . .1124.0 9.0 1171.0 740.5
Hunting . . . . . . . . . . . . .863.5 -4.0 968.0 530.0
Kentz Corporation . . . .399.9 -0.1 508.0 325.0
Petrofac Ltd. . . . . . . . . .1597.0 6.0 1772.0 1108.0
Wood Group (John) . . .848.5 -1.5 854.5 469.9
Burberry Group . . . . . .1375.0 1.0 1586.0 1092.0
PZ Cussons . . . . . . . . . .303.9 -1.1 374.2 285.0
AstraZeneca . . . . . . . .2908.5 -15.0 3111.5 2591.0
BTG . . . . . . . . . . . . . . . .308.9 -1.4 423.0 238.0
Dechra Pharmaceut . . .558.5 -0.5 565.5 418.3
Genus . . . . . . . . . . . . . .1372.0 30.0 1457.0 965.0
GlaxoSmithKline . . . . .1415.5 6.5 1507.5 1279.5
Hikma Pharmaceuti . . .715.5 -9.5 774.0 555.5
Shire Plc . . . . . . . . . . . .1932.0 -3.0 2300.0 1743.0
Capital & Countie . . . . . .216.5 -1.1 219.2 158.1
Daejan Holdings . . . . .2885.0 16.0 3323.0 2319.0
F&C Commercial Pr . . . .104.0 0.0 107.3 94.0
Grainger . . . . . . . . . . . .100.0 -0.7 116.0 77.3
London & Stamford . . . .118.7 -0.8 122.6 101.8
Raven Russia Ltd . . . . . .65.8 0.8 67.5 48.8
Savills . . . . . . . . . . . . . .407.0 1.2 409.9 256.2
St. Modwen Proper . . . .198.9 -1.1 220.0 103.5
UK Commercial Pro . . . .68.0 -0.1 79.0 65.1
Big Yellow Group . . . . . .319.6 -0.1 330.0 218.0
British Land Co . . . . . . .537.5 -5.0 549.5 444.0
Capital Shopping . . . . .341.5 -1.8 354.2 288.7
Derwent London . . . . .1920.0 -12.0 2021.0 1400.0
Great Portland Es . . . . .445.5 -3.9 449.4 312.9
Hammerson . . . . . . . . .463.5 -5.0 474.5 345.2
Hansteen Holdings . . . . .79.5 0.8 80.0 68.0
Land Securities G . . . . .798.0 -5.0 815.0 612.0
SEGRO . . . . . . . . . . . . . .230.0 -0.6 259.2 195.0
Shaftesbury . . . . . . . . .523.0 -7.5 549.0 445.2
Anite . . . . . . . . . . . . . . .130.0 -0.6 132.3 58.3
Aveva Group . . . . . . . .1915.0 8.0 1925.0 1298.0
Computacenter . . . . . . .394.3 4.3 461.9 292.4
Fidessa Group . . . . . . .1463.0 -8.0 1766.0 1394.0
Invensys . . . . . . . . . . . . .251.7 -0.8 257.0 180.9
Micro Focus Inter . . . . .542.0 0.5 566.5 308.3
Sage Group . . . . . . . . . .304.4 -0.7 312.4 247.7
SDL . . . . . . . . . . . . . . . .649.5 -5.5 756.0 586.0
Telecity Group . . . . . . . .867.5 -11.5 895.0 538.5
Aggreko . . . . . . . . . . .2359.0 2.0 2373.0 1522.0
Ashtead Group . . . . . . .332.7 0.9 334.2 124.3
Atkins (WS) . . . . . . . . .669.5 3.0 799.0 490.2
Babcock Internati . . . . .920.0 -1.0 947.5 595.0
Berendsen . . . . . . . . . . .561.0 -4.0 575.0 402.7
Bunzl . . . . . . . . . . . . . . .1107.0 -10.0 1167.0 761.5
Cape . . . . . . . . . . . . . . . .239.1 2.4 518.0 182.3
Capita . . . . . . . . . . . . . .750.0 7.0 767.0 602.0
Carillion . . . . . . . . . . . . .284.1 4.2 361.9 235.5
De La Rue . . . . . . . . . . .998.0 -9.0 1074.0 773.5
Diploma . . . . . . . . . . . .448.4 -2.6 460.5 284.0
Electrocomponents . . . .231.2 -0.2 263.0 182.2
Experian . . . . . . . . . . .1025.0 3.0 1032.0 685.0
Filtrona PLC . . . . . . . . . .533.5 2.0 540.0 313.2
G4S . . . . . . . . . . . . . . . .260.7 2.2 292.1 219.9
Hays . . . . . . . . . . . . . . . . .81.3 4.5 92.5 58.9
Homeserve . . . . . . . . . .238.0 2.2 490.3 137.5
Howden Joinery Gr . . . .150.0 2.0 150.4 96.4
Interserve . . . . . . . . . . .377.9 0.4 382.2 270.1
Intertek Group . . . . . .2852.0 11.0 2861.0 1744.0
Menzies(John) . . . . . . .630.0 0.0 652.0 475.0
Michael Page Inte . . . . .386.6 7.2 497.0 323.0
Mitie Group . . . . . . . . . .292.0 3.5 296.7 220.0
PayPoint . . . . . . . . . . . .707.0 -2.0 740.0 465.0
Premier Farnell . . . . . . .185.4 -5.3 228.8 144.5
Regus . . . . . . . . . . . . . . .102.8 -1.7 117.5 64.1
Rentokil Initial . . . . . . . .82.8 0.3 89.9 58.2
RPS Group . . . . . . . . . . .244.7 -2.5 250.0 156.6
Serco Group . . . . . . . . . .572.5 4.5 602.0 458.0
Shanks Group . . . . . . . . .92.8 1.8 115.9 75.8
SIG . . . . . . . . . . . . . . . . .106.0 -0.9 123.2 77.0
Travis Perkins . . . . . . .1090.0 1.0 1125.0 715.0
Wolseley . . . . . . . . . . .2739.0 30.0 2742.0 1425.0
ARM Holdings . . . . . . . .549.0 2.0 645.0 469.0
CSR . . . . . . . . . . . . . . . . .327.8 -5.2 338.4 154.1
Imagination Techn . . . .613.5 -10.5 717.0 358.7
Spirent Communica . . .162.0 0.7 174.0 105.8
British American . . . . .3124.5 -49.0 3488.0 2691.5
Imperial Tobacco . . . .2250.0 -12.0 2595.0 2004.0
Betfair Group . . . . . . . .748.0 14.0 901.0 660.5
Bwin.party Digita . . . . .103.7 7.5 174.0 91.9
Carnival . . . . . . . . . . . .2265.0 20.0 2369.0 1841.0
Compass Group . . . . . .705.0 0.0 727.0 512.5
Domino's Pizza Gr . . . . .553.5 14.5 556.0 393.1
easyJet . . . . . . . . . . . . .560.5 -0.5 572.5 311.5
FirstGroup . . . . . . . . . . .256.2 5.3 349.1 187.4
Go-Ahead Group . . . . .1323.0 28.0 1506.0 1086.0
Greene King . . . . . . . . .594.5 -1.0 611.0 411.4
InterContinental . . . .1609.0 -9.0 1725.0 973.0
International Con . . . . .149.9 3.2 189.7 132.0
Ladbrokes . . . . . . . . . . .179.4 1.5 181.4 114.0
Marston's . . . . . . . . . . . .114.4 -1.1 115.5 84.6
Millennium& Copt . . . .495.0 -6.5 513.0 371.2
Mitchells & Butle . . . . . .288.7 10.2 294.6 215.6
National Express . . . . .222.0 2.0 252.0 180.0
Rank Group . . . . . . . . . .132.3 0.1 150.9 111.0
Restaurant Group . . . . .356.5 8.5 358.0 265.3
Stagecoach Group . . . .290.8 -0.2 297.2 230.4
TUI Travel . . . . . . . . . . .226.6 2.9 227.1 136.7
Wetherspoon (J.D. . . . .460.5 -4.4 474.0 371.3
Whitbread . . . . . . . . .2300.0 21.0 2310.0 1508.0
WilliamHill . . . . . . . . . .309.2 -0.7 314.6 183.3
Abcam. . . . . . . . . . . . . .424.5 2.5 431.0 324.5
Advanced Medical . . . . .77.5 -2.8 95.0 64.0
Albemarle & Bond . . . .261.0 -2.5 375.0 232.8
Amerisur Resource . . . . .35.3 -0.8 42.0 9.5
Andor Technology . . . .405.0 23.9 605.0 305.0
Archipelago Resou . . . . .55.0 1.0 77.0 49.0
ASOS . . . . . . . . . . . . . . .2011.0 23.0 2019.0 1142.0
Aurelian Oil & Ga . . . . . . . .7.6 0.1 48.8 7.3
Avanti Communicat . . .352.8 4.5 419.0 241.3
Blinkx . . . . . . . . . . . . . . .55.3 0.5 158.0 33.5
Borders & Souther . . . . .24.3 -1.0 131.0 15.3
BowLeven . . . . . . . . . . . .78.0 5.0 137.3 53.5
Brooks Macdonald . . .1295.0 -15.0 1365.0 1022.5
Cluf Gold . . . . . . . . . . . .76.5 2.3 112.5 50.0
Daisy Group . . . . . . . . . .98.0 1.0 115.5 86.0
EMIS Group . . . . . . . . . .765.0 5.0 765.0 397.5
Faroe Petroleum . . . . . .153.5 0.5 177.8 130.0
Gemelds . . . . . . . . . . . .33.0 -0.5 42.1 18.9
Gulfsands Petrole . . . . .128.0 -4.0 212.3 82.0
GWPharmaceutical . . . .70.0 0.0 106.0 67.8
H&T Group . . . . . . . . . .296.0 0.0 357.5 253.0
Hargreaves Servic . . . .730.0 10.0 1264.0 703.5
Healthcare Locums . . . . . .1.9 -0.2 1.9 1.7
IDOX . . . . . . . . . . . . . . . . .37.5 0.5 40.3 21.4
ImpellamGroup . . . . . .345.0 0.0 362.5 225.0
Iomart Group . . . . . . . .162.0 2.0 164.1 98.5
James Halstead . . . . . .624.0 4.0 665.0 410.3
London Mining . . . . . . .154.3 8.0 382.3 129.0
Lupus Capital . . . . . . . . .147.0 0.0 147.9 88.0
M. P. Evans Group . . . . .553.8 16.8 553.8 390.0
Majestic Wine . . . . . . . .440.0 -8.5 483.0 315.0
May Gurney Integr . . . . .119.0 5.0 302.0 114.0
Monitise . . . . . . . . . . . . .36.0 -1.5 40.0 25.5
Mulberry Group . . . . . .1358.0 28.0 2472.0 1250.0
Nanoco Group . . . . . . . .58.0 -2.5 77.5 38.0
Nichols . . . . . . . . . . . . . .753.5 15.0 757.0 505.0
Numis Corporation . . . . .98.0 3.0 101.0 72.0
Pan African Resou . . . . . .17.5 0.3 18.3 11.5
Patagonia Gold . . . . . . .29.0 0.3 70.0 16.5
Prezzo . . . . . . . . . . . . . . .66.8 -1.6 70.0 53.8
Rockhopper Explor . . . .185.8 0.0 393.5 165.0
RWS Holdings . . . . . . . .513.8 0.0 560.0 410.0
Secure Trust Bank . . . .1200.0 2.5 1215.0 755.0
Sirius Minerals . . . . . . . . .18.5 0.8 32.0 9.0
Smart Metering Sy . . . .206.0 -1.0 207.0 79.0
Songbird Estates . . . . . .102.0 -0.4 123.0 100.0
Thorpe (F.W.) . . . . . . . .1042.5 0.0 1070.0 765.0
Valiant Petroleum . . . .470.0 -10.0 585.0 353.5
Young & Co's Brew . . . .630.3 0.3 692.5 580.0
JD Sports Fashion . . . . . . . . . . . .723.5 9.4
Bwin.party Digital . . . . . . . . . . . .103.7 7.8
Ferrexpo . . . . . . . . . . . . . . . . . . .196.5 7.5
Bank of Georgia Ho . . . . . . . . .1320.0 5.9
Hays . . . . . . . . . . . . . . . . . . . . . . . .81.3 5.8
Dixons Retail . . . . . . . . . . . . . . . .20.3 5.0
Spirax-Sarco Engin . . . . . . . . . .2126.0 4.5
Kazakhmys . . . . . . . . . . . . . . . .686.5 4.4
Petropavlovsk . . . . . . . . . . . . . .394.0 4.2
Man Group . . . . . . . . . . . . . . . . . .83.9 4.0
Laird . . . . . . . . . . . . . . . . . . . . . .230.5 -4.2
Ruspetro . . . . . . . . . . . . . . . . . . .114.7 -4.0
Dairy Crest Group . . . . . . . . . . . .344.0 -3.7
Premier Farnell . . . . . . . . . . . . . .185.4 -2.8
Premier Oil . . . . . . . . . . . . . . . . .376.9 -2.7
Paragon Group Of C . . . . . . . . . .199.2 -2.6
SABMiller . . . . . . . . . . . . . . . . .2700.0 -2.3
Glencore Internati . . . . . . . . . . .370.0 -2.1
Yule Catto &Co . . . . . . . . . . . . . .166.4 -2.1
Barr (A.G.) . . . . . . . . . . . . . . . . .458.4 -2.1
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
http://corporate.webfg.com
mailto:
globaltechsales@webfg.com
Tsy 4.500 13 . . . . . . .102.11 -0.04 105.9 102.1
Tsy 2.500 13 . . . . . . .281.54 0.01 285.0 280.1
Tsy 8.000 13 . . . . . . .108.16 -0.06 115.0 108.0
Tsy 5.000 14 . . . . . .109.72 -0.01 112.6 109.5
Tsy 4.750 15 . . . . . . .113.72 0.03 115.4 113.4
Tsy 8.000 15 . . . . . . .125.36 0.01 129.0 125.2
Tsy 4.000 16 . . . . . . .114.45 0.07 115.0 111.9
Tsy 2.500 16 . . . . . .345.97 0.02 348.1 337.1
Tsy 8.750 17 . . . . . . .140.00 -0.02 142.0 138.7
Tsy 12.000 17 . . . . . .114.65 -1.95 125.2 112.5
Tsy 1.250 17 . . . . . . .116.06 0.03 117.1 113.4
Tsy 5.000 18 . . . . . . .123.18 0.09 124.1 118.7
Tsy 4.500 19 . . . . . . .122.83 0.17 123.7 115.9
Tsy 3.750 19 . . . . . . . .118.51 0.19 119.2 110.4
Tsy 2.500 20 . . . . . .371.89 0.13 373.5 349.0
Tsy 4.750 20 . . . . . .126.06 0.22 126.9 117.7
Tsy 8.000 21 . . . . . .155.04 0.16 156.6 145.9
Tsy 4.000 22 . . . . . .121.86 0.23 122.8 111.9
Tsy 1.875 22 . . . . . . .128.43 0.12 130.3 120.5
Tsy 2.500 24 . . . . . .336.46 0.18 339.4 307.5
Tsy 5.000 25 . . . . . .134.54 0.26 135.9 122.3
Tsy 4.250 27 . . . . . .126.40 0.24 128.0 112.5
Tsy 1.250 27 . . . . . . .123.39 0.10 127.0 113.6
Tsy 6.000 28 . . . . . . .151.35 0.17 153.7 136.4
Tsy 4.750 30 . . . . . . .133.76 0.24 135.8 118.6
Tsy 4.125 30 . . . . . . .314.95 0.16 322.8 289.4
Tsy 4.250 32 . . . . . . .125.74 0.31 127.8 111.1
Tsy 4.250 36 . . . . . .124.50 0.33 127.2 110.0
Tsy 4.750 38 . . . . . .133.90 0.31 137.2 118.8
Tsy 4.500 42 . . . . . .129.01 0.31 133.6 114.3
% %
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CITYA.M.
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RUINART CLAIMS to be the worlds
oldest champagne house, founded
by Nicolas Ruinart in 1729, and
Browns Hotel claims to be the
oldest hotel in London, opening in
1837. They have combined to offer
a new breakfast-in-bed package,
based around flavours that
compliment Ruinarts ros
champagne. So far, so glamorous.
I went to check out the ultra-
romantic package. Alone.
Browns, in Mayfair is owned by
Rocco Forte and is as luxurious as
youd expect. My deluxe suite
looked like a classically decorated
apartment, rather than a hotel
room, furnished with studiously
cool books by the likes of
Evelyn Waugh and George
Orwell, and prints of
Winston Churchill and
vintage cigarette packets.
The concept is a breakfast
designed to accentuate the
subtleties of Ruinart Ros,
with fruit flavours chosen
to reflect the fizz. It is a
gigantic spread,
involving waffles
smothered in dark
cherries, sugared
pink grapefruit,
pineapple and melon
(served, of course, in
a tiny hollowed-out
pineapple, as if you
would serve it any
other way),
strawberry smoothie,
pomegranate
breakfast bars (the low-point of
the breakfast), croissants, and,
obviously, the champagne itself. If
you can polish it all off, you have a
bigger appetite than I do, although
I made a serious dent in the booze.
My only complaint was the lack of
coffee an absolute necessity at
any civilised breakfast.
There is also a perfume
challenge, which involves
identifying scents that reflect the
nose of the Ruinart Ros, with the
correct answers awaiting you in a
sealed envelope (I scored five out
of eight). Its a fun addition to
the breakfast, although quite
how educational it is, Im not
entirely sure.
If youre looking for a special
romantic gift for your other
half, you could do far worse
than this. By Steve Dinneen
The Ruinart Ros
Interpretation Breakfast In Bed,
launches in October.
A Bronx: take
a drink on
the wild side
E
ACH of New Yorks five boroughs
Manhattan, the Bronx, Brooklyn,
Queens and Staten Island have a
cocktail named in their honour.
Although the Manhattan is the Big Apple, you
would be well advised to go north of the
boarder and check out the Bronx.
At root, the Bronx is a Perfect Martini (gin
with sweet and dry vermouth) with the
addition of orange juice. It was invented in
the 1930s, when a customer challenged the
bartender Johnnie Solon of the Waldorf-
Astoria, located on the corner of Fifth
Avenue and 33rd Street (where the Empire
State Building now stands). A waiter said to
Solon: Why don't you get up a new
cocktail? I have a customer who says you
cant do it. He did it.
Solon wrote: It wasnt really named
directly after the borough or the river so-
called. I had been at the Bronx Zoo a day or
two before, and I
saw, of
course, a
lot of
beasts I had
never known.
Customers used
to tell me of the
strange animals
they saw after a lot of
mixed drinks.
Knowing the history of a
drink is interesting, but it
doesnt help you to imbibe.
Although making the perfect
cocktail every time takes years
of work, making decent
cocktails isnt as tricky as
many assume.
If your a neophyte begin,
perhaps, with a gin Martini;
then move on to a Perfect
Martini; and next a Bronx. And
after a Bronx? Then make this
modern variation
from Ryu Okada
of Kampai
Cocktails.
This modern bronx has sherry as the dry
element and elderflower, and cherry heering
as sweet elements says Okada. Gin and
elderflower work beautifully bringing out
the sweetness of orange, while sherry
balances the dryness, he adds.
KAMPAI COCKTAILS MODERN BRONX
n35ml Gin
n10ml Dry Sherry
n10ml Elderflower Cordial
n5ml Cherry Heering
n25ml Fresh Orange Juice
Method
lShake and strain into chilled martini glass
l Garnish with a cherry and orange zest
(discard the peel)
But beware, the Bronx comes with a
sobering sting in the tail. It was the drink
that led, in 1917, to the partial ruin of William
Griffith Wilson, who went on to co-found
Alcoholics Anonymous. Gin also known as
Mothers Ruin deserves respect. And it
would be a tragedy to drink so much that
you had to give it up entirely. It would be
enough to drive you back to drink.
THE JUGGED HARE
49 Chiswell Street, EC1Y 4SA
Tel: 020 7614 0134
FOOD hhhii
SERVICE hhhhi
ATMOSPHERE hhhhh
Cost per person without wine: 40
STRAIGHT
UP
PHILIP SALTER
City A.M.s resident cocktail expert
Gameonat the Jugged Hare
Y
ou shouldnt review restaurants
when you have a cold. You
shouldnt go to them at all. As
anyone who remembers
primary-level biology will tell you, 70
per cent of things you think you taste,
you actually smell, which means a
blocked nose isnt going to make your
meal any better. But when your job
depends on it, sometimes you have to
make exceptions. Sometimes you just
have to suffer for your art.
Thankfully, flavour isnt in short
supply at The Jugged Hare. The restau-
rant has been around since January
but, thanks to the rather confusing
game laws in the UK, it has only just
started serving its eponymous signa-
ture dish: jugged hare.
Youre in no doubt as to whats on
the menu when you walk into the
place; a warren-full of taxidermied
Thumpers peer down from the walls,
like a nightmare version of Watership
Down. The restaurant, which sits in a
slightly lowered section away from
the bar, is a quietly stunning former
brewery with glazed white tiling and
lots of gleaming copper. It has a
Scottish country gentleman feel to it,
if it isnt too close to an oxymoron to
use the words Scottish and gentle-
man in the same sentence. Even the
waiters are kitted out in tweed waist-
coats. Unfortunately, thanks to the
aforementioned cold, I couldnt hear
a word they, or anyone else, was say-
ing. When our waiter asked Would
you like to hear the specials?, for
example, I heard: Has anyone told
you about the specials, and cheer-
fully replied No, which took the
wind out of his sails somewhat. He
read them out anyway and I pre-
tended Id understood and ordered
something from the menu.
First up was breaded black pud-
ding with brown sauce, which was
tasty, if a little heavy. In retrospect, it
was probably to prepare us for what
was to come.
For the starter I went for Bath and
Chaps, largely because Id never
heard of it and I like a surprise. Turns
out its a cut of meat from a pigs
head and neck with a langoustine
lounging over the top. The crus-
tacean was laden with nice pink roe,
but there wasnt a great deal of meat
on him, although the fatty cut of
pork was delicious, as long as you try
not to think about your arteries.
Then on to the main event.
Jugged hare is essentially a stew,
cooked until all of the meat has
completely fallen off the bones,
and thickened with the hares
blood. It comes in a big jug, with a
serving spoon. It doesnt sound like
the most appetizing thing in the
world. It tastes a bit like a slightly
metallic beef bourguignon, with
impossibly tender meat that falls
apart in your mouth. It is also the
heaviest dish in the world. It has a
higher atomic weight than mercu-
ry. After the waiter set it on the
table, the side dishes quickly fell
into orbit around it.
For a bit of light relief Id help
myself to a mouthful of rib-eye steak
(nice cut, flavoursome but not one
Ill be talking about in a year), which
was positively airy by comparison.
Dessert wasnt much respite,
either. The sea-buckthorn junket
with caraway biscuits, served in a lit-
tle glass jar was so nicely presented I
considered pocketing the jar, but I
had to abandon the plan when I con-
ceded defeat half way through
(nobody wants a pocket full of sea-
buckthorn junket). Nothing
remained of the Maltesers ice cream
with chocolate sauce: a suitably glut-
tonous way to round off an altogeth-
er gluttonous meal.
Starve a fever, feed a cold, goes
the old wives tale. I think I may
have fed mine to death: I woke up
the next day feeling much better, if
a little wider around the waist.
The Jugged Hare comes complete with stuffed versions of the animals you can find on the menu
THE
REVIEW
STEVE DINNEEN
To mark the 75th Anniversary of
The Hobbit, HarperCollins is
throwing a hobbits Second
Breakfast in the gardens of
Fulham Palace, transforming the
traditional surroundings into the
magical world of The Shire. The
event will fall on 22 September,
the date marked as the official
birthday of Bilbo and Frodo
Baggins. Activities will include
readings from Tolkiens novels
and what the organisers are
calling a Middle Earth feast.
To apply for tickets log on to
www.hobbitsecondbreakfast.com
A meal fit
for a Hobbit
BROWNS HOTEL
33 Albemarle Street, W1S 4BP
Tel: 020 7493 6020
FOOD hhhhi
SERVICE hhhhi
ATMOSPHERE hhhhh
Cost for two people: 495
Its never too early for a champagne breakfast
32
FOOD& DRINK
cityam.com
LIFE&STYLE
HEALTH & GROOMING
LOSING YOUR HAIR?
IT CAN BE RESTORED!
THE WIMPOLE CLINIC
Ha nna h Hous e , 1 1 - 1 6 Ma nc he s t e r S t r e e t , L ond on W1 U 4 DJ
At The Wimpole Clinic, one
of the leading hair transplant
centres in Europe, Dr. Michael
May F.R.C. S. has pioneered
a permanent solution to
male pattern baldness using
advanced follicular unit
hair transplant techniques.
For your FREE consultation
with Dr May call today on:
020 7935 1861
www. wi mpol ec l i ni c. c om
Got in shape for
summer? Dont let
the hard work go to
waste now its over
TRADE IN YOUR LATTE
That morning latte can contain around a
fifth of your total daily calorie intake. Cut
back to a small skinny cappuccino, or
even better, downsize to an Americano. In
just 10 days you could lose a pound from
dropping a large latte alone.
DONT FORGO TREATS
You dont have to forgo everything tasty
just get food savvy. Switch from your
usual muffin to a reduced fat croissant;
switch your lunchtime flapjack to a small
cereal bar to ditch thousands of calories a
week.
GO GREEN
Green tea is one of the closest things you
can get to a cure-all. It helps to suppress
appetite and increases your metabolic
rate, plus it contains immune-boosting
antioxidants too. Have two to three cups
a day to see its effects.
RUN A BATH
A recent study found that soaking in hot
water gives many of the same benefits as
exercising the heart rate is increased
while your blood pressure is lowered. If
you needed any more reason to enjoy a
long soak, warm water relaxes tense
muscles and both supports and reduces
stress on the joints (medical researchers
even recommended underwater exercise
for arthritis patients).
BEWARE OF HEALTH FOOD
Light salad dressings can be high in sugar,
while supposedly healthy smoothies and
handfuls of nuts can all spell waistline
disaster due to their high calorie and fat
content, so keep portions small.
www.laurawilliamsonline.co.uk
@laurafitness
31
Scents of
occasion?
FIT IN
THE CITY
LAURA WILLIAMS
FITNESS & DIET EXPERT
cityam.com
THE BIG NIGHT OUT AT THE OFFICE
THAT ALL-IMPORTANT DINNER DATE
For those nights of drinks
and dancing and general
debauchery wear heavy,
intoxicating scents. Spicy,
musky tones offer a sense
of warmth with floral
notes adding a richness to
the scent.
For daywear, or office-
wear you should chose
fresh fragrances that will
be light and inoffensive.
Citrus and floral tones are
preferable with airy
delicate hues hitting just
the right note.
Fragrance should be like
outfits; you wouldnt wear
your shortest party dress
out to lunch so you
shouldnt wear your most
alluring, intense perfume.
Save these heavier scents
for later.
Attraction is often started
from smell so be sure that
you are wearing the right
one. Choose bold,
inventive fragrances;
complexity makes for a
more interesting and
alluring scent.
Bvlgari Man; 56
Finding a balance between
warmth and freshness this scent
celebrates the self-confident
man, with hints of sandalwood,
violet and white honey.
Tom Ford Extreme; 80
An unusual combination of basil,
chamomile, coriander and cinnamon
bark give this unique fragrance an
unforgettable spicy citrus scent.
Gucci Premire; 77
A fragrance that is sophisticated and iconic as the label
itself. Gucci Premiere is designed to make every
woman feel glamorous, while retaining the subtlety
you need for everyday wear.
Comme des Garcons Amazing Green; 73
Bursting with fresh green energy, this scent fuses organic
and mineral ingredients to create a synthesis of freshness
and depth. Its notes include palm tree leaves, green
pepper, coriander seeds and gunpowder.
Chanel Coco Noir; 106
Claiming to capturing the
seduction, elegance and
magnetism of the colour black,
this rich scent is perfect for
decadent autumn nights.
You wouldnt wear the same suit or dress
every day, so why do the same with your
fragrance? Here is our guide to getting
the right scent for the occasion, by
Albany Bell
Have you got a...
LUNCH LIASION
Dior Jadore Absolu; 85
Luscious fresh floral tones are intensified in this
twist on the classic fragrance Jadore. Dior has
struck gold with this beautiful remake.
Narcisco Rodriguez
For Her; 77
For her has found a new formula with
a limited edition reinterpretation of
the popular fragrance.
Roja Parfums
Danger; 295
Rich oriental overtones create the
ideal scent for cosying up as the dark
nights draw in.
T
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BBC1
SKY SPORTS 1
7pmFootball Asia 7.30pmLive
International Football 10.30pm
Footballs Greatest 11pmFootball
Asia 11.30pmSporting Greats
12amInternational Football 3am
Football Asia 3.30amSporting
Greats 4amSuper League
Backchat 4.30amGolf
5.30am-6amFootball Asia
SKY SPORTS 2
7.25pmLive International Football
9.45pmInternational Twenty20
Cricket 11.45pmPremier League
Poker 1.45amSuper League
Backchat 2.15amPowerboating
2.45am-4.45amInternational
Twenty20 Cricket
SKY SPORTS 3
7pmPowerboating 7.30pmLive
International Football 10pmSuper
League Backchat 10.30pm
Powerboating 11pmEuropean
Seniors Tour Golf 12amGolf 1am
LPGA Tour Golf 2.30amChallenge
Series Golf 3am-4amSports
Unlimited
BRITISH EUROSPORT
7pmFootball 8pmBritish
Superbikes 9pmWorld Superbikes
10pmMotoGP 11pmWorld Cup
World Tour 12am-12.30am
Porsche Super Cup
ESPN
7pmFA WSL Review Show
7.30pmFrance World Cup
Qualifying Preview8pmLive
International Football 10pmFA
WSL Review Show10.30pm
Australian Football International
2012 11.30pmESPN FC Press Pass
12amWorld Series of Poker 2am
Planet Speed 2.30amAmerican Le
Mans Series 3.30amMazda
Championship Racing 4.30am30
for 30 5.30am-6amGoal Show
SKY LIVING
7pmCriminal Minds 8pmPassport
Patrol 8.30pmGates 9pmStyled
to Rock 10pmCriminal Minds
11pmBones 12amGates 12.30am
Styled to Rock 1.25amCriminal
Minds 3.55amMedium4.45am
Americas Next Top Model
5.35am-6amNothing to
Declare UK
BBC THREE
7pmTotal Wipeout 8pmFree
Speech 9pmDont Tell the Bride
10pmBad Education 10.30pm
EastEnders 11pmFamily Guy
11.45pmAmerican Dad! 12.30am
Bad Education 1amDont Tell the
Bride 2amFree Speech
3am-3.55amTourettes: Let Me
Entertain You
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8.30pmThe Big Bang
Theory 9pmNew Girl 9.30pm
Suburgatory 10pmDont Trust the
B**** in Apartment 23 10.30pm
The Cleveland Show11pmiTunes
Festival 2012 12amThe Ricky
Gervais Show12.40amThe Big
Bang Theory 1.35amScrubs
2amHow I Met Your Mother
2.25amRules of Engagement
2.45amDesperate Housewives
3.30am90210 4.10amSmallville
4.50am-6amSwitched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8.30pmCajun Pawn Stars
9pmStorage Wars 9.30pm
Storage Wars: Texas 10pmSeeking
Salvage 11pmStorage Wars
11.30pmPawn Stars 12am
American Pickers 1amStorage
Wars 1.30amStorage Wars: Texas
2amSeeking Salvage 3amSwamp
People 4amThe Last Days of
World War Two 5amPawn Stars
5.30am-6amAmerican
Restoration
DISCOVERY
7pmBorn Survivor 8pmCounter
Terrorist Unit 9pmSecrets Of Bin
Ladens Lair 10pmGold Divers
11pmGold Rush 12amSecrets Of
Bin Ladens Lair 1amGold Divers
2amAuction Kings 3amAmerican
Chopper: Senior Versus Junior
3.50amWheeler Dealers 4.40am
Born Survivor 5.30am-6am
Destroyed in Seconds
DISCOVERY HOME &
HEALTH
7pmDr Oz 8pmI Didnt Know I
Was Pregnant 9pmEmbarrassing
Bodies 10pmUntold Stories of the
ER 11pmA&E 12amEmbarrassing
Bodies 1amUntold Stories of the
ER 2amA&E 3amI Didnt Know I
Was Pregnant 4amDeliver Me
5am-6amA Baby Story
SKY1
8pmThe British 9pmStrike Back:
Vengeance 10pmFILMGattaca
1997. 12.05amAnna Karenina: Sky
Movies Special 12.20amAn Idiot
Abroad 2 1.15amRoad Wars
2.05amBrit Cops: Zero Tolerance
3amRoad Wars 3.50amBrit Cops:
Rapid Response 4.40amRoad
Wars 5.10am-6amSell Me the
Answer
BBC2 ITV1 CHANNEL4 CHANNEL5
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6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmEastEnders: BBC News
8pmHolby City
9pmTrouble on the Estate
10pmBBC News
10.25pmRegional News;
National Lottery Update
10.35pmThe Lock Up 11.15pm
Citizen Khan 11.45pmFILMOn a
Clear Day 2005. 1.20am
Weatherview1.25amSign
Zone: Toughest Place to Be a
Ferryman 2.25amRip Off Britain
3.10amCelebrity MasterChef
3.40amCelebrity MasterChef
4.10am-6amBBC News
6pmEggheads
6.30pmCelebrity MasterChef:
7pmCelebrity Antiques Road
Trip: With EastEnders
favourites Pam St Clement and
Rudolph Walker.
8pmThe Great British Bake
Off: The contestants face three
pie-making challenges.
9pmCHOICE Vikings: New
series. Neil Oliver explores the
history of the Norse warriors.
10pmThe Rob Brydon Show
10.30pmNewsnight: Weather
11.20pmChina on Four Wheels
12.20amBBC News
4am-6amBBC Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmCHOICE Emmerdale:
Chas kisses Cameron, unaware
Carl is watching.
7.30pmLive International
Football: England v Ukraine
(Kick-off 8.00pm).
10.10pmITV News
10.40pmLondon News
10.45pmInternational
Football Highlights
11.45pmGrimefighters
12.15amJackpot247; ITV
News Headlines
2.45amGolden Balls
3.40am-5.30amITV Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmDouble Your House for
Half the Money
9pmOne Born: Twins and Triplets
10pmRude Tube 11.05pmRandom
Acts 11.10pm9/11: The Miracle
Survivor 12.10amSurfing Special:
The Endless Winter 1.55amKOTV
2.20amSailing: Americas Cup
Discovered 2.45amInternational
Volleyball 3.35amThe Grid 4am
British Rallycross 4.25amFIM
Superbike World Championship
2012 4.50amIronman Triathlon
5.15am-6.10amDeal or No Deal
6pmHome and Away
6.30pm5 News at 6.30
7pmNew Cowboy Builders: 5
News Update
8pmThe Yorkshire Ripper
Mind of a Killer: Revealed: 5
News at 9
9pmCHOICE Person of
Interest
10pmCSI: Crime Scene
Investigation
10.55pm CSI: Crime Scene
Investigation 11.55pmCSI: Miami
12.50am SuperCasino 3.55am
HouseBusters 4.20amHouse
Doctor 4.45amMichaelas Wild
Challenge 5.10am-6amWildlife
SOS
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
digits1-9 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
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.
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.
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
SUDOKU
SUDOKU
QUICK CROSSWORD
WORDWHEEL
1 2 3 4 5
6
7 8 9
10
11 12 13
14
15 16 17
18 19
20 21
22 23
3 14 23
45
7 16
4 9
24 17 16
45
8 10 7
10 14
15 5
45
21 16 6
8
13
16
30
11
15
13
10
11
34
8
11
22
35
12
12
4
13
19
37
16
27
3
ACROSS
1 Tailed heavenly body (5)
3 Software program
capable of causing great
harm to a computer (5)
7 Chest bones (4)
9 Person who handles
equipment for travelling
entertainers (6)
10 Hindu princess (4)
11 Departed (4)
12 Sugary (5)
15 Wine and hot
water drink (5)
17 Stare at lustfully (4)
19 Printed characters (4)
20 Series of arches
supported by
columns (6)
21 Small whirlpool (4)
22 Imposed a levy (5)
23 Beauty parlour (5)
DOWN
1 Enclosure
for cattle or
horses (6)
2 Literary
composition (5)
4 Extremely
angry (5)
5 Look for (4)
6 Dish of mutton,
potatoes and
onions (5,4)
8 Fearless (5)
13 ___ on, urged (5)
14 Put ones faith
in (4,2)
16 Clear space
in an area of
woodland (5)
17 Drama set to
music (5)
18 Stop (4)
M
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M
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4

4

P U R S E C I R C A
O E N O N O E
L Y I N G B O W E R
K T B P I
A M B I V A L E N C E
O M L R U
S W E E P S T A K E S
A N A T U
M A L T A B I K E R
O O A T H V G
A M B L E B E R N E
4 2 1 4 9 8
3 8 7 5 6 1 2 4 9
2 9 7 9 1 6
1 7 6 9 3 7
6 1 2 3 4 5 8
5 3 1 2 1 3 2 4
6 7 5 3 8 2 9
8 2 9 8 1 9
9 5 1 3 4 8
7 4 1 9 6 3 8 2 5
1 2 6 8 9 6
4
4
4
4
4
4
4
4
4
The nine-letter word was
BRAWNIEST
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
VIKINGS
BBC2, 9PM
Neil Oliver explores the history of the
Norse warriors, beginning by
examining their ancestry and charting
Scandinavias prehistoric landscape.
EMMERDALE
ITV1, 7PM
Chas kisses Cameron, unaware that
Carl is watching. Meanwhile, Victoria
confronts Moira about Alex, but she
holds her own.
PERSON OF INTEREST
CHANNEL5, 9PM
Reese tracks judge Samuel Gates, who
has been identified by the machine,
and realises he is in need of protection.
Starring Jim Caviezel.
TVPICK
33
TV & GAMES
cityam.com
BRITAINS Mark Cavendish was
yesterday outsprinted by Leigh
Howard of Australia in the pursuit
of victory in the second stage of the
Tour or Britain.
The world road race champion,
supported by Team Sky colleagues
Bradley Wiggins and Luke Rowe,
was unable to pass the Australian
after appearing to get boxed in in
the races closing stages, but
though he remained in front of Boy
van Poppel who remains the
races overall leader Tyler Farrar
and Russell Downing, who
respectively finished third, fourth
and fifth, Rowe admitted that the
result was a disappointment.
With 600m to go I led into it
with Cav in my wheel, said Rowe
of the Cheshire stage.
He said he wanted to try and let
me go and slip a few wheels back.
We knew there was a bit of a dip
and hed use the run.
Unfortunately on that dip the
riders switched from right to left
and he got a bit chopped up. Cavs
shown how fast he was in that
finish. Its frustrating but you
could see how fast he was coming
up at the line.
The race today heads to Scotland
with the 152.6km third stage
beginning at 11am in Jedburgh and
ending in Dumfries.
Cavendish kept
from Tour of
Britain victory
ENGLAND captain Steven Gerrard is
adamant that 17-year-old Raheem
Sterling will become a significant
player at international level after
manager Roy Hodgson admitted the
winger had been called up to encour-
age his development.
Hodgson has turned to Sterling,
Southamptons Adam Lallana and
Tottenhams Jake Livermore for
tonights World Cup qualifier against
Ukraine after the withdrawal of
Arsenals Theo Walcott through ill-
ness and Gerrard, Sterlings club
captain at Liverpool, believes this
call-up to be the first of many as
his talent develops to fulfill an
unquestionable potential.
He is a fantastic talent, one of the
shining lights at our club this year,
even though results havent been
good enough, said Gerrard.
It is great for him to be called up
and get a feel for the senior group
because it wont be too long before
he becomes a regular in this group.
He is that good. He is a mature 17-
year-old. There is nothing flash about
him at all. He is a quiet kid. He works
hard and listens and that is the key
when you are that age and a good
player. If you can listen and take
advice from good managers and play-
ers, you will keep on progressing
and improving.
He is a breath of fresh air, espe-
cially for the older lads, with the
pace and excitement he brings. He is
a nightmare to mark for defenders.
Such a character reference from a
Gerrard backs
Raheem for
Sterling future
England career
player of Gerrards calibre is unques-
tionably gratifying for Sterling,
who is expected to remain on the
bench this evening at Wembley, but
despite his praise Gerrard believes it
would be wrong to prematurely pres-
sure the winger and has called for
patience in his progress.
Lets be patient with him, he
stressed. Lets not force it and expect
too much too soon. Let it happen nat-
urally and in time we will have a fan-
tastic player for Liverpool and
England. It is different for the young
lads now, there is a lot more pressure
on them. Its important the people
around them support them and give
them the back-up they need.
Just because you break into an
England squad, or played a handful of
games for your club, it doesnt mean
you are the finished article. There is
still so much improving and learning
for these guys to do.
Sterlings inclusion in the England
squad comes amid Jamaicas admit-
tance of their intention to persuade
him to switch his international alle-
giance but Hodgson is insistent that
his inclusion is not simply reac-
tionary and that the players progress
is his primary concern.
Raheem has come on leaps and
bounds and in the opening matches
he has played this season, the reports
on him have been very good,
Hodgson said. I am not bringing him
with a view to necessarily playing
him now, [but] because there might
be a time in the future when not only
does he feature as a substitute, he
might be breaking into the team.
West Ham Olympic stadium bid
gets East London business votes
LEADING business organisations
from east London have thrown
their weight behind West Hams
bid for the Olympic Stadium, as a
decision nears on one of the
capitals key legacy issues.
The ExCeL Centre and the East
London Business Alliance (ELBA)
have voiced their support for the
Premier League football club to be
the main users of the arena when
it reopens in 2014.
League One outfit Leyton Orient
have also bid to use the stadium,
which cost 486m and is to be
downscaled from 80,000 seats to
60,000, as well as a football business
college and a company that hopes
to stage a Formula One grand prix.
West Ham United have played a
pivotal role in the local community
for a great many years, making a
major contribution to the social
regeneration of east London, said
ExCeL Centre chief executive Kevin
Murphy. No one is better placed to
take hold of the legacy baton after
the Games and be at the heart of a
lively and busy Olympic Stadium.
ELBA chief executive Liam Kane
said West Hams proposed move
from nearby Upton Park would
alleviate local unemployment by
creating jobs in construction and
operation. West Hams bid would
guarantee a busy stadium on a bi-
weekly basis, thus ensuring
businesses in the local area
continue to flourish, he added.
Put simply, I cannot see any viable
alternative.
The London Legacy Development
Corporation is expected to
announce the successful bids next
month. West Ham believe they can
attract 1.2m visitors to the park
annually and have promised, if
selected, to create 720 jobs.
Liverpool winger Raheem Sterling is unlikely to make his full England debut tonight
LONDON 2012 chairman Lord Coe
has confirmed his interest in
replacing Lord Moynihan as head of
the British Olympic Association.
Coe, 55, admitted he had been
approached by the BOA, which is in
the process of drawing up a list of
possible successors to Moynihan,
saying: I am happy for my name to
go forward.
He has already been asked to
advise Prime Minister David
Cameron on maximising legacy
benefits from the Olympic and
Paralympic Games, which concluded
on Sunday. Coe led Londons
successful bid for the Games before
leading the organising committee.
Coe welcomes
BOA interest
BY FRANK DALLERES
34
SPORT
cityam.com/sport
BY DECLAN WARRINGTON
BRITISH heavyweight David Haye
believes it is only a question of time
before Vitali Klitschko attempts to
make a match between the two and
that the Ukrainian needs a defining
fight before he finally retires.
Klitschko on Saturday completed
another successful defence of his
WBC heavyweight title against
Germanys Manuel Charr after a
significant cut to the challengers
right eye meant he could not
continue beyond the fourth round,
but though the Ukrainian suggested
beforehand that that fight may be
his last, Haye believes his future
political career will be delayed
and his pugilism one
consequently prolonged.
I have had no contact from
Klitschkos team and Im not
anticipating any as it is well
documented he is running for mayor
of Kiev in late October. said Haye.
But after hes lost that campaign I
expect to hear from him. I want to
convince him hes not had a
defining fight. His biggest fight was
against Lennox Lewis which he lost.
Although he has a long string of
victories, none have been against
opponents who have brought any
excitement.
You want to retire on a big fight
and Charr was definitely not a high.
Haye predicts
showdown
against Vitali
@cityam_sport
BY FRANK DALLERES
EXCLUSIVE
35
IN BRIEF
Swansea sign left-back Tiendalli
nFOOTBALL: Swansea City have
signed former Holland U21 left-back
Dwight Tiendalli as a replacement for
the injured Neil Taylor, who has been
ruled out for the entire season with a
broken ankle. The Dutchman arrives
on a free transfer after being released
by FC Twente.
Coleman expects Wales goals
nFOOTBALL: Chris Coleman has
predicted his Wales side will tonight
end their goal drought when they play
Serbia in a World Cup qualifier in Novi
Sad. We will score goals and I
thought we were going to get a goal
against Belgium, he said.
Ireland squad warn McClean
nFOOTBALL: Sunderland winger
James McClean received a dressing
down from his Ireland team-mates
after using Twitter to criticise the
decision to leave him on the bench
against Kazakhstan as a joke while
using foul language. Striker Kevin
Doyle said: We said to him straight
away its not acceptable. We found
out pretty much straight away.
Dawson backs Gatland move
nRUGBY UNION: Former British and
Irish Lions scrum-half Matt Dawson
believes the appointment of Warren
Gatland as coach is the right one. I
think its the right appointment, he
said. The Lions committee have
absolutely nailed it. Maybe for once in
goodness knows how long theres
very little controversy.
GOLF
COMMENT
SAM TORRANCE
ARSENAL midfielder Abou Diabys
fitness is again a concern for the
club after France manager Didier
Deschamps revealed that he has
suffered a new muscular injury.
Diabys career has been regularly
undermined by a succession of
injuries and the latest will keep him
from todays World Cup qualifier at
home to Belarus and potentially
from Arsenals upcoming fixtures.
Diaby took a bad shot and he
has muscular discomfort, said
Deschamps. He is not free in
his movements.
The former Auxerre player has
started all three of Arsenals Premier
League games this season.
Diaby a doubt
for Arsenal
Mo Farah was present among the Olympians and
Paralympians at yesterdays victory parade in London
See The Capitalist, Pages 20-21
cityam.com
Cech pulled out of friendly over
fears for Chelsea keepers injury
McIlroy: No decision
has been made for
the 2016 Olympics
Rory Mcs the true No1 and more will follow
CZECH Republic doctors have
played down fears over Chelsea
goalkeeper Petr Cech after it
emerged an elbow injury has left
him unable to play without pain.
The problem has been deemed
sufficiently serious for Blues staff
to ask their Czech counterparts to
no longer select the 30-year-old for
non-competitive friendlies.
Cech has also been booked in for
surgery on the troublesome joint
at the end of the season, as it is
believed it is unlikely to worsen
before then. An investigation
showed a bit of ossification in his
elbow, so they [Chelsea] are
planning a surgery in England after
the season, said Czech national
team doctor Petr Krejci.
They have very kindly asked us
if we could rest him in friendly
fixtures. We have come to an
agreement with coach Michal Bilek
and decided to be on good terms
with Chelsea. We are going to grant
their wish and rest him.
Petr cannot stretch the arm
properly. If he has to stretch the
elbow, it hurts him sometimes.
There is nothing to be worried
about, though. There is basically
nothing that could make this
problem worse.
The only thing that could force
an immediate surgery is if the
intensity of pain would get much
higher or if the elbow was blocked
in some way.
The agreement means Cech will
now sit out tonights friendly
against Finland and rest ahead of
Chelseas weekend clash with west
London rivals QPR.
The Champions League winners
have again sent Cechs understudy,
Belgian prospect Thibaut Courtois,
on a season-long loan to Spanish
club Atletico Madrid.
BY FRANK DALLERES
WORLD No1 Rory McIlroy last night
denied he had already decided to
represent Great Britain rather than
Ireland when golf is introduced at
the next Olympic Games in Rio in
2016, but admitted facing a hugely
sensitive and difficult position.
The Northern Irishman, who
continued his superb year by
winning the BMW Championship in
America on Sunday, posted an open
letter on Twitter after remarks
made in a weekend interview
suggested he would opt to join the
British team.
I am in an extremely sensitive
and difficult position and conveyed
as much in a recent newspaper
interview, McIlroy wrote.
I am a proud product of Irish
Golf and the Golfing Union of
Ireland and am hugely honoured to
have come from very rich Irish
sporting roots, winning Irish boys,
youths and amateur titles and
playing for Ireland at all levels. I am
also a proud Ulsterman who grew up
in Northern Ireland, which is part of
the United Kingdom. That is my
background and always will be.
He added: I wish to clarify that I
have absolutely not made a decision
regarding my participation in the
next Olympics. On a personal level,
playing in the Olympics would be a
huge honour. However, the Games in
Rio are still four years away and I
certainly wont be making any
decisions with regards to
participating any time soon.
The 23-year-old from Holywood,
County Down, said at the weekend:
The fact is Ive always felt more
British than Irish. He added:
Whatever I do, I just hope the vast
majority will understand.
BY FRANK DALLERES
Results
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R
ORY McIlroys win over the
weekend, at the BMW
Championship in Indiana, was
magnificent.
The field featured an array of
players from both the European and
the US Ryder Cup teams in Lee
Westwood, Phil Mickelson, Tiger
Woods, Dustin Johnson, Luke Donald,
Justin Rose, Graeme McDowell and
Ian Poulter, but McIlroy was the stand-
out performer.
The boy just goes from strength to
strength, and I even think theres a
hell of a lot more to come. Hes only
23 so hes going to go on winning
tournaments for the next 20 years;
were very fortunate to have him in
Europe. Its amazing.
Id totally expected him to make the
progress hes made and achieve what
he has; hes that good. I havent seen
any weaknesses in McIlroy. The boy
just gets better every year and hes
learning all the time. Again, you
can expect a lot more from him in
the future.
RYDER CUP BOOST
As the No1 in the world, McIlroys the
most important player for the
European Ryder Cup team. His form
is obviously hugely encouraging for
them and the captain Jose Maria
Olazabal but hes not the only one
that did well Westwood and Poulter
did too. Essentially, their form
continues what has been an
incredible six weeks for Europe.
Vijay Singh had led McIlroy at one
point but even though he didnt
finish top it was still a great
performance. The mans 40 but he is
up against the best in the world so
its difficult to sustain that level of
performance. He will be
disappointed because he is a hell of a
player and would have thought that
he could win.
Tiger Woods produced a solid
performance but when youre
discussing him its wins you expect,
and winning by four or five shots, and
hes not doing that. McIlroy put him
in his place; the No1 has changed now
its not Tiger any more, its McIlroy.
Peter Hanson is another European
player and his win at the KLM Open at
Hilversum was a good one for him.
Nicolas Colsaerts and Martin
Kaymer who are also on the
European team may not have stolen
the show but thats no problem when
Hansons done well, and they were
still solid enough.
When a team gets a series of results
like Europes individuals have just
done, its a confidence boost for all of
the players and everyone involved.
They should be extremely confident
about their chances.
Sam Torrance OBE is a multiple Ryder
Cup-winning golfer and media
commentator. He has won 21 European
Tour titles iand famously sank the putt that
clinched victory for Europe in the 1985
Ryder Cup. He also captained the side to
victory in 2002.
ENGLAND can only hope for a draw from the Twenty20 series with South Africa after
rain caused last night's second match at Old Trafford to be abandoned. Hashim Amla's
47 off 30 balls helped the tourists reach 77-5, with downpours limiting both sides to
nine overs, and England were on 29-2 when the weather intervened again five balls
short of the minimum five overs needed to constitute a match.
RAIN ENDS ENGLANDS HOPES OF T20 VICTORY
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