BUSINESS WITH PERSONALITY
LVMH SNAPS
Issue 1,337 Tuesday 8 March 2011
SHOPPERS HIT
AS OIL SURGES
ON GULF FEARS
ECONOMICS
▲
BY MARION DAKERS AND JULIAN HARRIS
HIGH STREET confidence faces a dou-
ble battering, with the spiralling con-
flict in Libya pushing oil prices higher
and new figures suggesting a 0.4 per
cent like-for-like sales slump in
February.
Oil prices hit fresh highs again yes-
terday, coming after reports that
fighting in Libya had closed the oil
ports of Ras Lanuf and Brega.
Brent crude spot prices in London
gained more than two per cent to
peak at $118.50 a barrel, close to highs
last seen in September 2008, before
slipping back to $115.04. US crude hit
a 28-month high.
Ministers from countries in the
Opec oil cartel are holding talks about
increasing production to help cool the
runaway rise in fuel prices.
Goldman Sachs hawk steps
into Sentance’s Bank role
▲
UK ECONOMY
BY JULIAN HARRIS
GOLDMAN Sachs economist Ben
Broadbent was appointed as the latest
Bank of England rate setter yesterday,
with many observers expecting him to
support the move for higher rates.
Broadbent will replace outgoing
chief hawk Andrew Sentance in June.
Sentance has consistently voted for
higher interest rates since June 2010.
FTSE 100 ▼ 5,973.78 -16.61 DOW ▼ 12,090.03 -79.85
INMARSAT SHARES SHED
13 PER CENT IN ONE DAY
WE TALK TO THE CEO P13 & P20
The instability also helped pull the
price of copper to its steepest one-day
decline in four months.
Nato began round-the-clock air sur-
veillance of Libya yesterday as people
on the ground reported further
airstrikes by pro-Gaddafi forces.
The military alliance is considering
options including a no-fly-zone and
helping to enforce the UN-mandated
arms embargo, the US ambassador to
NATO confirmed, in a move to pile
pressure on Gaddafi’s regime to halt
the ongoing violence.
Six Gulf nations including Saudi
Arabia called for the UN to impose a
no-fly-zone yesterday, demanding in a
statement that the organisation
“take[s] all necessary measures to pro-
tect civilians”.
Foreign secretary William Hague
confirmed that the UK and other UN
members were working “on a contin-
Economist Ben Broadbent
will replace Andrew
Sentance, who will leave
the rate setting
committee in May.
Broadbent’s team of economists at
Goldman Sachs predicted rate hikes of
0.75 per cent by the end of this year,
and an extra one per cent next year,
according to a Reuters poll.
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gency basis” on a UN resolution that
would allow a no-fly-zone.
Defence ministers are due to con-
sider the options at a meeting in
Brussels on Thursday.
Hague also told Parliament yester-
day that a “serious misunderstanding
of their role” caused the detention of
MI6 officers and SAS soldiers by
Libyan rebels, and that he would take
full responsibility for the mission.
Meanwhile, the British Retail
Council said sales on the high street
fell 0.4 per cent in February compared
to last year, while total sales growth
rose just 1.1 per cent compared with a
4.2 per cent year-on-year rise in
January. “Other than the negative fig-
ures last April, caused by the annual
movement of Easter, this February’s
total sales growth is the poorest since
May 2009,” said the BRC’s Stephen
Robertson. ALLISTER HEATH: P2
The Bank “has erred on the dovish
side,” Broadbent recently wrote, citing
its faith in “significant slack in the
economy” and limited further com-
modity price inflation.
“One can take issue with these judg-
ments, not least because some have
been proved persistently wrong,”
Broadbent wrote.
Yet Barclays’ Simon Hayes warned:
“It is notoriously difficult to predict
how a new member will behave.”
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Barclays boss Bob Diamond tops UK bank pay
Bonus row reignited as
Barclays publishes pay
▲
BANKING
BY JULIET SAMUEL
BARCLAYS has revealed that it award-
ed its top five non-board executives
total pay of £28m last year, with the
heads of its investment bank Barclays
Capital Jerry del Missier and Rich Ricci
pocketing over £10m each.
The bank also confirmed it will pay
current chief executive Bob Diamond
£6.5m in an all-share bonus in addi-
tion to his £250,000 salary. The bonus
makes Diamond the most well-paid
head of any major UK bank, with
HSBC’s chief Stuart Gulliver coming
in second at £5.2m.
The awards could all be boosted if
Barclays’ executives meet perform-
ance-related targets, with Missier and
Ricci in line for an extra £3.4m each
and Diamond to get another £2.3m.
The bank published more details
than in the past due to the terms of
Project Merlin – the Treasury’s deal
with banks – and extra regulatory
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requirements.
But the additional transparency did
not appease critics. Former Liberal
Democrat Treasury spokesman Lord
Oakshott, who resigned over the
Merlin deal, said that it “shows how
the managers of this business extract
enormous rewards for failure”.
Labour called for its bonus tax to be
reintroduced and union Unite con-
demned “a culture of greed” at the bank.
But British Bankers’ Association
chief Angela Knight defended the pay-
outs, telling City A.M.: “You either play
the game and pay to keep people or
you don’t and they go down the road.”
Barclays’ report revealed the pay of
executives managing Barclays’ various
divisions ranges from £3.7m to
£10.9m, with the vast majority of these
pay-outs in bonuses made up of shares.
In addition, it showed that the
bank’s 554 “code staff” – managers
whose pay is regulated – received an
average pay-out of £913,000.
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 2 News
Why the consumer is no longer king
EDITOR’S LETTER
ALLISTER HEATH
WHY are so many people still in
denial? The era of debt-fuelled spend-
ing, from the private and the public
sector, is over. A crisis caused by exces-
sive and underpriced debt cannot be
resolved by borrowing even more. It is
a simple proposition. Virtually all
companies, many individuals and
some governments now understand
this – but many others just don’t get
it. The British economy is smaller
than it was three years ago, so the pri-
vate and public sectors both have to
tighten their belts. We can’t go on
spending and consuming more than
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Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
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WHAT THE OTHER PAPERS SAY THIS MORNING
IVORY COAST MOVE SPARKS COCOA
FEARS
Laurent Gbagbo, the Ivory Coast
leader who the international commu-
nity says lost presidential elections in
November, announced he would
nationalise the cocoa sector in a sur-
prise move that threatened to drive
the cocoa price sharply higher. The
African country is the world’s largest
cocoa exporter, accounting for 40 per
cent of global supplies of the bean.
BETFAIR SET TO MOVE OFFSHORE
Betfair is expected to announce today
that it will in future operate under a
Gibraltar rather than a UK gaming
licence, following the lead of other
betting operators that have moved
offshore to escape the UK’s 15 per
cent tax on gross betting profits. The
betting exchange, which floated in
October, has repeatedly warned that
it was at a competitive disadvantage
we are producing forever. Down that
road lies national bankruptcy.
In the two decades to 2007, borrow-
ing by UK firms and households rose
11 per cent a year, more than twice
the growth of the whole economy,
according to Deloitte. At first, this
made sense: credit can be a good
thing when taken in sensible doses.
Even respectable people in steady jobs
once found it hard to get a mortgage,
or a credit card, making it hard for
them to spread spending over their
lifetimes. Yet we went from a situa-
tion of too little leverage in the early
1980s to one of excessive debt by the
early 2000s, and eventually to an orgy
of demented leverage by 2006-07.
Over the next few years, growth in
overall bank credit will run at a frac-
tion of the rates seen in the previous
two decades – and a good thing too.
There will be less demand for debt –
but also less supply, with banks hav-
ing to hold much greater and more
liquid capital reserves. The price of
borrowing – especially for unsecured
Government
backs Prince
POLITICS
▲
BY MARION DAKERS
DOWNING STREET pledged its sup-
port to Prince Andrew in his role as
British trade envoy yesterday after
fresh criticism of the prince’s ties to a
billionaire convicted sex offender.
David Cameron’s office played
down reports throughout the day that
it was considering side-lining Prince
Andrew from his trade duties, telling
journalists: “We fully support Prince
Andrew in his role as trade envoy.
“We think he does an important
job, he makes an important contribu-
tion and we are not reviewing that
role,” a spokesman added.
However, government sources earli-
er told the media any further revela-
tions would make the Prince’s
position untenable.
Labour MP Chris Bryant said the
because of its UK licence.
3 FIGHTS TO STAY IN BANDWIDTH
RACE
3, the UK’s smallest mobile network
operator, is warning it will get swal-
lowed up in a fresh round of industry
consolidation if it fails to secure air-
waves being sold off next year. Kevin
Russell, chief executive, demanded
that regulators introduce rules that
give his company a stronger chance of
buying radio spectrum in the much-
delayed auction.
MANPOWER REVEALS WIDENING JOB
CREATION GAP
Strong hiring plans in the developing
world contrasted with a subdued out-
look in industrialised nations, sug-
gesting the job-creation gap will
widen, according to a report by
Manpower, the global recruiting firm.
Companies in developed economies
remain wary of boosting employment
in the second quarter of the year,
according to the survey.
loans such as credit cards or over-
drafts – will be permanently higher
and better reflect real risks. The chal-
lenge will be to maintain the recovery
without large injections of credit.
This is especially true of consumer
and government borrowing.
Corporate credit was a problem at the
height of the bubble, when mega-pri-
vate equity deals were being financed
with oodles of debt. It is much less of
an issue today. Firms have slashed
their reliance on bank debt aggres-
sively since the start of the downturn,
relying instead on internally generat-
ed funds, equity raising and corporate
bond markets. American companies
have cut levels of bank debt by 22 per
cent and UK companies by 18 per
cent, according to Deloitte.
Reduced growth in consumer cred-
it will end the boom in retail sales
and leisure spending of the past few
years; total volumes will keep on
growing but at a slower rate than
GDP. In the long-term, this will be a
good thing as it will help rebalance
government should get rid of Andrew
immediately.
“I think the government is making
a big mistake here,” he told BBC radio.
“They should be absolutely clear -- we
are going to dispense with his servic-
es.”
Andrew is in hot water over his
friendship with New York financier
Jeffrey Epstein, who was jailed in 2008
for child sex offences.
Sarah Ferguson, the Prince’s ex-wife,
said yesterday that the couple accept-
ing money from Epstein was “a gigan-
tic error of judgement”.
Prince Andrew has
been criticised for his
friendship with Jeffrey
Epstein, a convicted
sex offender
WOULD-BE ACCOUNTANTS BEAT A
PATH TO KPMG TO ESCAPE UNI FEES
Thousands of aspiring young bean-
counters are likely to be disappointed
after KPMG was swamped with more
than 5,000 inquiries for a ground-
breaking graduate recruitment
scheme. The Big Four accountant
expects to take on about 115 trainees
after signing up Birmingham and
Exeter universities to the scheme yes-
terday, alongside Durham.
KUONI ENJOYS A BIGGER BITE OF THE
APPLE
Kuoni closed the gap on TUI Travel
and Thomas Cook at the top of the
European travel industry league table
yesterday after agreeing a $720m
(£444m) acquisition of Gullivers
Travel Associates. The Swiss tour oper-
ator is buying GTA, an online travel
specialist, from Travelport, a private
equity-backed US travel firm.
the economy: we need more savings
and investment, and a greater empha-
sis on export-driven-private sector
growth – and less private and public
consumption as a share of GDP. In the
short-term, however, it will be painful.
Today’s figures from the British Retail
Consortium – total retail sales rose
just 1.1 per cent and like-for-like sales
fell 0.4 per cent in February on a year
ago – confirm that the great retail
bonanza is over (though of course
surging living and petrol costs and
inflation are the other key drivers of
the slowdown, having slashed real dis-
posable income).
The British consumer’s credit card
is maxed out, as is the government’s.
The UK’s only hope is that the private
sector starts to invest again – the cor-
porate capital stocks are in need of
refreshing after the cutbacks of
recent years – and is able to sell its
wares abroad. Hoping for a domestic
consumer-led recovery is pointless.
Follow me on Twitter: @allisterheath
allister.heath@cityam.com
Amstrad founder Alan Sugar has joined the board of online TV project YouView
YouView hires Lord Sugar
MEDIA
▲
BY MARION DAKERS
LORD SUGAR yesterday joined the
board of online TV venture YouView
as chairman, after his predecessor
Kip Meek left the group suddenly
after just eight months.
YouView, a joint venture between
broadcasters and internet providers,
said Amstrad founder Sugar had been
hired to inject some media experi-
ence into the boardroom.
Meek said: “It has been apparent
FSA MISJUDGED HOW MUCH HELP
BANKS NEEDED
The FSA was in denial about the scale
of the banking crisis right up to the
week of the historic multi-billion-
pound bailout in October, 2008, an
investigation by The Telegraph has
found. Just days before the rescue, FSA
officials believed the most the bank-
ing system would require in emer-
gency equity was £20bn.
ARM HELD BACK FROM INVESTING IN
TECH START UPS
The chief executive of microchip ARM
Holdings has said he would invest
£12m of the Cambridge-based compa-
ny’s £300m cash pile in technology
start ups if the Government tackled
the accounting standards holding
him back. Warren East said the FTSE
100 company invested in “one or two”
technology companies each year but
would back more if rules were altered.
CITYA.M. 8 MARCH 2011
NEWS | IN BRIEF
JP Morgan settles $1.2bn case
JPMorgan Chase has settled a lawsuit
accusing it of defrauding bond investors
out of at least $1.2bn (£741m) through
bad record keeping, court records show.
Investors had accused JPMorgan of
deleting records on $46.8bn of bonds
from roughly 6,500 bond issues that
had not been cashed in, and then cover-
ing up its mistakes. “Any party who
presents a valid bond for payment will
be paid,” a bank spokeswoman said.
Treasury outlines carbon plan
The Treasury will set a legal framework next
month to create a floor price for carbon
emissions, while announcing a wider plan for
encouraging low-carbon investments. The
government’s Carbon Plan will award £1bn
to Britain's first carbon-capture and storage
project by the end of 2011.
Equities outpace hedge funds
Hedge funds gained 1.4 per cent in value
over February, despite heightened
volatility driven by unrest in the Middle
East. The Hennessee Hedge Fund Index
rose 1.39 per cent last month, it said
yesterday, while the S&P 500 advanced
3.2 per cent.
for some time that the YouView
board would benefit from additional
expertise in consumer marketing and
technology delivery.”
The YouView set-top box was due to
launch in 2010 but has been beset by
delays, and is now expected to
become available in early 2012.
The box will allow viewers to
stream on-demand TV through a
broadband connection.
Meek, a former Ofcom director,
joined in July and guided the group
over several regulatory hurdles.
EU PREPARING NEW STRESS TESTS
EU regulators preparing a new round
of bank stress tests are unlikely to
examine what would happen to the
region’s banks if a Eurozone govern-
ment defaults on its debt, a European
official yesterday. Most of the EU’s
national regulators meeting last
week opposed a plan to stress-test gov-
ernment debt held on “banking
books”, where accounting rules allow
banks to place debt that is supposed
to be held until it matures, they said.
NOKIA TO SELL QT BUSINESS
Nokia will sell its Qt commercial
licensing and services business to
technology services firm Digia, both
companies yesterday. Nokia acquired
Trolltech, a small Norwegien firm,
and its Qt technologys, which allow
application programmes to work on
multiple platforms, in 2008 for
$153m (£94.4m).
CITYA.M. 8 MARCH 2011
Mattel closed its six-storey Barbie concept store in Shanghai yesterday
Xstrata board
change clears
Glencore path
▲
MINING
BY MARION DAKERS
MINING group Xstrata has sought to
put clear water between its board
and commodity trader Glencore’s by
choosing banking veteran Sir John
Bond as its next chairman, though
the miner has hinted that its long-
term future is in a merger between
the two firms.
Sir John will take the job in May
when sitting chairman Willy
Strothotte, who has also chaired
Glencore since 1994, leaves the role.
Xstrata has surprised some
investors by choosing a successor
before Glencore, which owns a 34 per
cent stake in Xstrata, publicly
announces its much talked about ini-
tial public offering.
It was expected that Strothotte
would then step down from Xstrata
Sir John prolongs his stay
in the City with mining role
PROFILE
▲
BY MARION DAKERS
SIR John Bond, one-time chairman
of HSBC and outgoing chairman of
Vodafone, hopes to extend his stay
in the FTSE 100 after agreeing to
chair mining group Xstrata.
Sir John, aged 70, has wasted no
time, joining Xstrata’s board as a
consultant with immediate effect
ahead of his departure from
Vodafone in July.
Sir John will eventually replace
Willy Strothotte, the Glencore
chairman who retires from the
Xstrata chair at an AGM on 4 May.
But even if Sir John’s tenure is
cut short by a Glencore merger
deal, he has plenty to share with
the firm in the meantime.
Bond has a wealth of ties to
China, one of Xstrata’s fastest-grow-
ing customers, thanks to more
than 40 years at HSBC and involve-
News 3
Mattel shuts Barbie
store in Shanghai
The shop opened in March 2009 as
▲
CONSUMER
BY MARION DAKERS Barbie celebrated her 50th birthday,
with Mattel hoping to expand sales in
RETAILER Mattel yesterday shut its new regions to offset flagging
flagship Barbie concept store in turnover in its traditional markets
Shanghai after just two years of try- during the recession.
ing to crack the Chinese toy market. The firm has not released sales fig-
Mattel said in a statement it ures for the concept store or given a
remained committed to expanding reason for its closure.
the brand in China, and that the six- Electronics retailer Best Buy last
storey outlet had raised Barbie’s pro- month scaled back its ambitions in
file in the country. the Chinese market.
under UK corporate governance rules
requiring an independent board.
Analysts at JP Morgan Cazenove
said replacing Strothotte with an
independent chairman clears a con-
flict of interest ahead of Glencore’s
float.
But the move could also be viewed
as a precursor to a merger between
Xstrata and Glencore even if the lat-
ter decides to go public.
Xstrata chief executive Mick Davis
told analysts last month it was
“unsustainable in the longer term”
for both Xstrata and Glencore to trade
as public companies, according to an
analyst note from HSBC released yes-
terday. There have previously been
reports that Davis would chair a com-
bined company if Glencore did move
to merge, leaving both Strothotte and
Bond out of the chairmanship.
INSIDE TRACK ON GLENCORE: P17
ment with the China Development
Forum and the Tsinghua School of
Economics and Management.
He began his career in a Hong
Kong branch of
HSBC at 21,
becoming
chief execu-
tive in 1993
and chair-
man in 1998.
He joined
Vodafone
i n
2006.
SIR JOHN BOND
CITYA.M. 8 MARCH 2011
Ignorance is
bliss for bank
bonus critics
ANALYSIS | Banks’ greater pay transparency
has not pleased anyone, writes Juliet Samuel
THE Treasury might be wishing it
could close the barn door today after
Barclays’ revealed that the bank’s top
executives are in line for pay-outs of
up to £14m each, provided they meet
performance targets.
Jerry del Missier and Rich Ricci, the
executives in question, run Barclays
Capital, the bank’s investment bank-
ing division, and have the dubious
honour of being BarCap’s first chiefs
ever to have their pay packets pub-
lished.
They were disclosed as part of
Project Merlin, the deal that banks
struck with George Osborne in order
to repair their image and move on
from a period of public anger about
bankers’ pay.
The irony is particularly rich given
that it was Barclay’s former chief exec-
utive John Varley who pushed the deal
through in the first place.
Critics will hardly be mollified by
the fact that Bob Diamond’s £6.5m
bonus relates to a year in which he
headed BarCap, rather than the whole
bank, or that pay previously assigned
but not yet handed over to senior staff
was cut by £91m after their perform-
ances failed to meet targets.
Instead, they point to dismal
returns for shareholders over the
medium-term: the bank’s share price
has yet to scale its heady pre-crisis
highs of 700p. But, in a more reason-
able comparison, it also drifted down-
wards over the course of 2010,
beginning at 276p and ending at 260p.
Until shareholders raise their own
complaints, however, the govern-
ment’s greater transparency require-
ments won’t serve to do much except
whip up further public fury.
BarCap co-head Jerry del Missier is in line to earn £14m in pay
News 5
Government set
to unveil £140
flat-rate pension
PENSIONS
▲
IN a radical shake-up of the basic state
pension system, pensioners are set to
receive a flat-rate of £140 a week, the
government is set to reveal today.
The pension reforms, to be
unveiled by work and pensions secre-
tary Iain Duncan Smith, are aimed at
simplying the current complex sys-
tem made up of a basic state pension,
based on years of national insurance
contributions, and a range of second-
ary “top-ups”, including pension cred-
its. A range of top-ups added to the
basic £96 weekly state pension are
supposed to guarantee a minimum
income of £132.60 for a single person,
but many people miss out due to con-
fusion over their entitlements.
Duncan-Smith says the “single-tier”
retirement payment would remove
confusion for those approaching
retirement, as well as help to reduce
inequity. Women often lose out on a
full state pension because they take
time out from the workplace to raise
children. Last month, DWP figures
suggested that this leaves women an
average of £2,000 a year worse off
than men.
The Coalition has already made
changes to the rules on private retire-
ment savings, abolishing the default
retirement age and introducing auto-
Picture: Micha Theiner matic enrolment for private pensions.
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CITYA.M. 8 MARCH 2011 News 7

Moody’s sees Rate hike could stop ECB buying bonds

rising risk of
other asset classes, raising yields on “The ECB is probably thinking it has

▲
EUROZONE CRISIS
bonds and further eroding the value done enough to appease the tensions
BY JULIET SAMUEL of the ECB’s considerable stock of within the monetary union,” says
THE European Central Bank could be bonds. Vanden Houte.
forced to slam the brakes on its sov- “Increases in official interest rates The ECB has been buying sover-
ereign bond-buying programme due would likely push up peripheral eign bonds on the secondary market

Greek default
to its intention to put up interest
rates, according to economists.
ING’s Peter Vanden Houte says
tightening monetary policy is “at
odds” with bond purchases because
higher rates will push investors into
bond yields further, thereby sad-
dling the ECB’s balance sheet with
additional capital losses,” he says.
The Bank is therefore likely to
push hard for the Eurozone’s bailout
fund to take over bond purchases.
in peripheral Eurozone countries in
order to bring their yields down.
An end to its interventions would
turn up the pressure on the region’s
leaders to come up with a solution
to the debt crisis.

CITY VIEWS: ARE YOU WORRIED ABOUT THE EFFECT OF GREECE’S PUBLIC
EUROZONE CRISIS nitude of the task facing the sovereign
FINANCES ON THE UK?
▲

BY JULIET SAMUEL is simply too great. “The task facing Interviews by Richard Partington
IN ASSOCIATION WITH
officials and managers remains enor-
MOODY’S delivered a jolt to Eurozone mous,” said Moody’s, citing “large
bond markets yesterday by downgrad-
ing Greece three notches to B1 – a
implementation risks” as a major con-
cern. It added that ongoing Eurozone
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lower rating than Egypt – and assign-
ing the sovereign a “negative” outlook.
negotiations about sovereign bonds
after 2013 have created uncertain
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The yield on Greece’s three-year debt investment conditions. If Greece fails
reached highs not seen since the gov- to meet its bailout requirements, TIM EDWARDS | BARRY HENLEY | REBECCA BROWN |
ernment had to be bailed out last May, Moody’s says: “There is some possibili- WILLIS RE RSA AXA
spiking to 16.8 per cent, while Greek ty that private creditors would be
five-year credit default swaps jumped expected to bear some losses.”
yesterday to a high of 1,005 basis “Yes, it affects our economic sit- “I would be concerned if we were “It’s worrying that we have paid so
points, meaning that it cost €1m to ANALYSIS l Greece 5yr CDS uation too. It’s right that we sup- funding their problems and not much money into the European
insure €10m of Greek debt.
The ratings agency said its decision
1000 988.00 port them, but the our own. I’m sure bailout so far. I’m more
7 Mar
was driven by problems with tax col- 950 case to say it’s unfair there’s potential worried about
lection and the overly ambitious tar-
gets Greece needs to meet to stabilise to subsidise them is risks for the rest of Ireland, it’s got more
900
its debts and meet the conditions of its clear too. They clear- Europe, particular- of an impact for us,
€110bn bailout.
The setback for Greece came despite 850
ly have to tighten ly with Ireland, but it would be
the government’s progress on its up regulatory Portugal and bad to pay more
deficit, which it cut by six per cent of requirements.” Spain too.” to Greece.”
GDP last year. The agency said the mag- 8 Feb 14 Feb 18 Feb 24Feb 2 Mar

@
Ireland’s debt
rating will not
be cut, says
ratings agency

@
▲

EUROZONE CRISIS
RATINGS agency Moody’s is not
about to cut Ireland’s debt rating, a
senior credit officer said yesterday,
Hot fares!
though the ratings agency is moni-
toring the new Irish government’s
Fly from Heathrow
attempts to win easier terms for its
loans under an EU/IMF rescue deal.
Moody’s cut Ireland’s rating by Dubai from £
319
five notches to Baa1 in December
and put the country on negative out-
look, meaning more downgrades
Lagos from £
347

@
could follow, amid fears further
bank losses will hit the public purse
and further weaken economic
Accra from £
386
growth prospects.
“The negative outlook reflects ... Nairobi from £
421
risks in the next 12 to 18 months. We

Johannesburg 422
are currently monitoring how things from £
develop in Ireland and we will act
when deemed appropriate,” Dietmar
Hornung, vice president and senior
credit officer at Moody’s, said. Singapore from £
480
Ireland agreed an €85bn (£73.3bn)
bailout with the EU and the IMF last Return fares, incl taxes
year to try and resolve a prolonged
banking crisis, but investors fear the
deal will bankrupt the former Celtic
Tiger economy. More offers on KLM.com
Ireland’s Prime-Minister-in-wait-
www.cityam.com

ing Enda Kenny is seeking better

repayment terms on Dublin’s bailout
package.
Kenny has less than three weeks to Fares quoted are for return flights from Heathrow via Amsterdam, including taxes and charges, which are subject to change. Book
by 20/03/11. Travel periods vary. Fares are subject to availability. Credit card surcharge will apply. Specific booking conditions and
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Germany, to reduce the interest rate
on the EU’s €40bn contribution and
give Dublin more time to restructure
its banks before a hoped-for EU-wide
deal on the debt crisis is hammered
out at a March 24-25 summit.
 10 News CITYA.M. 8 MARCH 2011

Rolls-Royce and Daimler STEADY PROGRESS AT STAGECOACH

STAGECOACH, the

open bid talks with rival

bus and rail group
led by chief execu-
tive Brian Souter,
said yesterday like-
for-like revenues at
its UK rail business,
which includes the
with Rolls-Royce, it is in discussions for more. South West Trains
▲

TRANSPORT
BY HARRY BANKS about the possibility of acquiring the ANALYSIS l Rolls Royce London commuter
majority of Tognum in equal shares,” franchise, grew 6.9
ROLLS-ROYCE and car group Daimler Daimler said. 670 p per cent in the 40
600.00
and British may make a joint bid for The UK enginemaker and Daimler 7 Mar weeks to 6 February.
German enginemaker Tognum, in a added they were in talks with 650 While sales at its
deal sources said could be worth €3bn Tognum, which may not lead to a UK bus unit rose 1.9
(£2.6bn). sale. 630 per cent, and its US
Shares in Tognum, which was for- Sources close to the talks said coach operation saw
merly owned by Daimler, closed up Daimler was willing to consider a 610
a 8.2 per cent rise in
23 per cent at €22.77 on the news yes- price of about €24 per share – almost core sales in the
terday. 30 per cent above Friday’s closing nine months to 31
“Daimler confirms that together price – whereas Tognum was pushing 27 Dec 14 Jan 3 Feb 23 Feb January.
Picture: Micha
Theiner

NEWS | IN BRIEF
Aer Lingus sees passengers fall
Aer Lingus, the Irish flag-carrier, saw its
passengers fall 13.6 per cent in the year
to the end of February, according to traf-
fic figures published yesterday. The air-
line said the number of long-haul
passengers it carried hit 38,000 last
month, down 17.4 per cent compared to
the same month a year ago. Its short-
haul passengers totalled 574,000, down
13.6 per cent on an annual basis. Aer
Lingus’ total load factor – a measure of
how well an airline fills its planes –
slipped 2.5 percentage points over the
year to the end of February to 67.4 per
cent. Short-haul booked load factor was
69.9 per cent, a decrease of 0.9 points on
the same month a year earlier.

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CITYA.M. 8 MARCH 2011 News 11

LVMH makes CREDIT SUISSE

ADVISER TO
BULGARI

Bulgari move Credit Suisse advised Bulgari on the

deal with LVMH, with sensitive nego-
tiations bringing about a deal in

to crack Asia which the Bulgari family were given

shares and just as importantly
retained key positions in the business.
Bulgari made it clear from the start
that it saw the agreement as a way
to expand its business rather than an
opportunity for it to retreat into the
shadows with the proceeds.
▲

RETAIL convince families to sell.

BY JOHN DUNNE
LVMH will take over Italy’s Bulgari in a
€3.7bn (£3.18bn) deal to fuel more
sales in emerging markets.
The offer could herald a flurry of
consolidation in the luxury market,
which has bounced back from the
2009 slump much faster than analysts
expected.
Bulgari shares were up 58 per cent
at one point after yesterday’s deal and
were halted from trading for almost
an hour because of excessive gains
The companies said that cost-shar-
ing will help the luxury group close
the gap with bigger watch and jew-
ellery companies,
LVMH owns brands including Louis
Vuitton handbags, Chaumet and Fred
jewellery, Celine and Kenzo fashion,
Hennessy cognac and Moet &
Chandon champagne.
The acquisition of family-controlled
assets, which does not happen often,
usually means buyers have to pay a
sizeable premium to the market to
“Bulgari is one of the best known
jewellery brands in the world, with
lots of potential to grow on the back
of LVMH’s global distribution reach
and financial muscle,” Bernstein luxu-
ry analyst Luca Solca said.
The deal will double LVMH’s watch
and jewellery business, analysts esti-
mated. They predicted that rival luxu-
ry groups could embark on a fresh
consolidation wave. Burberry shares
surged after the deal was announced
amid speculation that it could also be
an acquisition target.
ANALYSIS l LVMH
128
€
124
120
116
112
27 Dec 14 Jan
Bulgari is famed for its high-class jewellery and leather bags
M&A HEATS UP IN LUXURY GOODS MARKET
When Royal London Asset Management
recently drew up a list of possible
takeover targets, Burberry was one of
the top names on the list.
Its inclusion was another sign the
sector was ripe for deal-making with
whispers about possible offers for a
number of high profile retailers doing
the rounds.
112.95 With the increasing appetite for
7 Mar branded fashion goods in emerging mar-
kets, opportunities seem to abound. The
most high profile result so far was yes-
terday’s swoop by LVMH, which has
been seen by analysts as a move to
expand its footprint in places like China
and India.
Burberry, whose shares rose yester-
3 Feb 23 Feb day after the LVMH deal was
announced, recently took control of its
franchised stores in China for £70m in a
transaction that it said could boost its
earnings by almost ten per cent.
Other deals have included
Richemont’s acquisition of online fash-
ion site Net a Porter last year.
Meanwhile, analysts have pointed to
high-class jeweller Tiffany as another
luxury name which could be a target or
buyer.
Richemont saw its shares rise 3.6 per
cent yesterday as further consolidation
looked likely.
A bullish note from Goldman Sachs
also helped boost confidence in the sec-
tor, with the broker expecting 600m
new customers to enter the market by
2025.
According to insiders, both sides set
out exactly what they required from
a final agreement and despite some
hard bargaining the two sides were
satisfied with the outcome.
The team at Credit Suisse helped
Bulgari to take the plunge with a big-
ger company.
Bulgari shares surged yesterday after
the announcement of the acquisition,
as investors greeted the outcome of
one of the biggest consolidation
moves in the luxury retail sector for
some time.
The Credit Suisse team faced the
task of keeping the heartbeat of
Bulgari in the business while brining
in the financial clout of global giant
LVMH.
The Bulgari family will get an esti-
mated 3.5 per cent of LVMH, and it is
understood that the Bulgari business
will not be broken up.
Credit Suisse is accustomed to steer-
ing through large deals – in this case
through its Italian office.

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 The Capitalist
12 CITYA.M. 8 MARCH 2011
EDITED BY
HARRIET DENNYS
GOT A STORY? EMAIL
thecapitalist@cityam.com

NOT SUCH A LUCKY RMG may be riding high now, but

last November the company faced a
logistical nightmare when champion

BREAK FOR RACING jump jockey Ruby Walsh – the newly

signed sponsorship partner for the
group – broke his leg the day before

MEDIA GROUP
PUNTERS watching next week’s
Cheltenham Festival will be able to
see “every muscle move on every
horse”, as the sporting event marks
the first time Channel 4 will broad-
cast horseracing in high-definition.
The news broke at a lunch held by
Racing Media Group, the media part-
ner for the UK’s 30 premier racecours-
es, where chief executive Richard
FitzGerald and head of broadcast
David Bellin outlined the firm’s £8m
investment in a fleet of HD broadcast
trucks.
an extensive advertising campaign
was due to go live.
The TV ad for Channel 4 had to be
scrapped, at a cost of £15,000, and the
newspaper ads had to be quickly
amended to include a plaster cast on
the jockey’s leg.
After a four-month recuperation
period, Walsh returned to racing last
Friday and plans to ride Kauto Star in
the Cheltenham Gold Cup in an
attempt to win the victory he was

Don’t break a leg: Walsh and Kauto Star plan to win “Ruby Tuesday” Picture: GETTY

denied at Kempton in January. Gunmakers start each heat with a

In his honour, RMG has named the
first day of Cheltenham “Ruby
Tuesday”, and if Walsh is the lead
rider at the end of day one, anyone
who signs up for a Racing UK subscrip-
tion on that Tuesday will get the rac-
ing channel free for a year.
With odds of 3/1, according to
FitzGerald, perhaps it’s not such a bad
bet – accidents permitting.
bang, the Clockmakers time the races,
the Fruiterers provide lemons, the
Cutlers plastic forks, the Glovers the
white gloves worn by each runner, and
the Poulters the eggs essential in the
making of the pancakes.

SLEEPING BEAUTY
GIVEN the long hours worked by the
residents of the City, it was surely only
a matter of time before someone
invented a way of letting bankers take
a short snooze on the job.
That someone is former City worker
Jon Gray, who has this week launched
Podtime: enclosed pods fitted with a
mattress and pillows (pictured below)
that make it easy for City workers to
take “a short period of rest in the day”
– for a small price of £5.99, of course.
Gray, who claims the pods can
reduce stress levels and improve cogni-
tive performance, said:
“The pods are peacefully quiet, pro-
viding the perfect conditions to get
back on form after a stressful meeting
or tiring business trip.”
The pods will initially be situated in MP Stephen Pound in training
the Citi building at Canary Wharf –
the office address of one of the seven
traders caught snoozing in a lift after
a liquid Friday night client dinner at
SCRUM HALF
CALLING all rugby enthusiasts: the
Roka in the Park Pavilion. London City Scrum tournament, the
If only Gray’s sleeping pods had only touch rugby event in the Square
launched sooner, perhaps the traders Mile, will take place at the

London to could have spent a more comfortable

night.
Honourable Artillery Company in the
Square Mile on Tuesday 22 March.
Battling it out to win the City

Copenhagen MPS FLIP OUT

THE financial world is spoilt for
choice for Shrove Tuesday spectacles
Scrum and Plate in the tournaments’s
fourth year are 15 teams from firms
including Credit Suisse, captained by
Nick Kearns; UBS, led by Trevor

from to watch today. Leydon; and event organiser Norton

£
29 .99 Would you rather hotfoot it to Rose LLP, captained by Alastair
Victoria Tower Gardens to watch MPs Hamilton.
(Stephen Pound pictured “practising”, The standard of the contest should
single right), Lords and the media compete be high, as a professional player from
inc. taxes in the annual Rehab the Harlequins
Parliamentary Pancake Race squad is
outside the Houses of coaching
Parliament at 10am? each of the
Or would you prefer to teams – yes,
watch the City livery com- even those
panies racing each other at competing in
their more traditional the “mini tour-
Pancake Day event in the nament” for
We fly from London Gatwick, London Stansted and Manchester. Price correct on 14 February for travel between Guildhall Yard at midday? the City Scrum Vase. To
28 February and 17 April 2011. Variable charges for hold baggage apply and some payment methods attract a No offence to the politi- attend, RSVP by Monday 14
handling fee. See website for details. Photo credit: Nicolai Perjesi. cians, but this race is at least guar- March to CityScrum@nor-
anteed to run like clockwork: the tonrose.com.
CITYA.M. 8 MARCH 2011 News 13

Inmarsat dips NEWS | IN BRIEF

Western Digital in $4.3bn deal
Western Digital, the world’s second-
biggest hard drive maker, yesterday

as its revenue agreed to buy Hitachi’s hard disk drive

operations for about $4.3bn (£2.7bn) in
cash and stock. After the deal, Hitachi
will own 10 per cent of Western Digital.
Western Digital said it had secured a
term loan of $2bn and a revolving credit

growth slows facility of $500m to fund the deal. The

largest tech deal to be struck this year
caps years of consolidation for a belea-
guered industry that has battled persist-
ent sales growth declines, and now faces
a longer-term threat from wireless
devices like Apple's iPad.
▲

TELECOMS two to four per cent.

BY STEVE DINNEEN
FTSE 100 satellite telecoms firm
Inmarsat saw its shares tumble more
than 13 per cent yesterday after warn-
ing of slower-than-expected growth in
its core maritime business.
The firm told City A.M. uptake of its
Inmarsat said it has already
received additional revenue of $212m
from a deal with US telecoms
provider LightSquared to provide
spectrum for a hybrid satellite and
terrestrial network, of which it has
only booked $17m. It will receive an
extra $115m a year through the part-
BATM sees its profit tumble
Israeli telecoms equipment firm BATM
Advanced Communications posted a fall
Pearson boss Marjorie Scardino has built its education business Picture: REX in its full-year profit, hurt by a decline in
sales to its key customer Nokia Siemens
Pearson snaps up EDI in £113m Networks (NSN). Although the firm
maintained its final dividend of 0.8p per
share, it scrapped its interim dividend

deal to bolster its education unit

terminals was “very strong” but that
revenue growth will take a temporary
hit as customers switch from high-
margin voice-calls to text messages
and emails.
The dip meant revenue growth in
nership. for 2011. For the year ended 31
Inmarsat was a target of US hedge December pre-tax profit was $194,000
fund Harbinger, which snapped up a (£119,748), compared with $19.3m last
28 per cent stake before selling it year. Revenue fell 11 per cent to
down last year to concentrate on its $120.6m. Gross profit margin fell to 35.4
home market. INTERVIEW: P20 The group believes the acquisition per cent from last year's 42.6 per cent.
▲

the fourth-quarter fell to 8.4 per cent,
compared to a full-year rise of 12.9 per
cent. Chief executive and chairman
Andrew Sukawaty says he expects
data usage to rise exponentially and
pick up the slack left by voice calls
within two years.
The company posted pre-tax profits
of $333.5m (£205m) on 13 per cent
higher revenue of $1.17bn.
Analysts had hoped for growth of
around four to six per cent in 2011
but the firm issued guidance for just
PUBLISHING
will further boost its strength in the
ANALYSIS l Inmarsat 593.00 PEARSON has agreed a deal to buy education and testing business. EDI SDL pays maiden dividend
720 p
7 Mar Education Development International has a strong reputation for its use of IT Translation software firm SDL posted
700
(EDI) for £113m to further boost its to conduct learning programmes and a profit rise for 2010 and said it would
presence in the training and assess- deliver on-screen assessment. pay a maiden dividend to reflect its
680 ment market. The 200p-a-share cash offer for each confidence going forward. SDL, which
660 The publisher, which owns the EDI share represents a premium of provides translation software and
640 world’s largest education business and around 61 per cent to the closing price services for multinationals including
the Financial Times, said yesterday it on 4 March, the last business day Dell, Canon and Ford, said demand for
620
had already received support for the before the offer period. EDI provides its services looked solid going into
600 deal from over 30 per cent of EDI’s more than 400 vocational qualifica- 2011. Pre-tax profit rose 20 per cent
580 shareholders, which includes the tions in the UK, offering work-based to £29m on revenues 18 per cent high-
13 Dec 5 Jan 25 Jan 14 Feb 4 Mar firm’s directors. training for employers and colleges. er at £204m.

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 14 News CITYA.M. 8 MARCH 2011

Nomura appoints its first ever Japanese boardrooms

female chief financial officer head towards equality
PROFILE

▲
business of Lehman Brothers in the ANALYSIS l Nomura 496 BY RICHARD PARTINGTON
▲

BANKING
BY RICHARD PARTINGTON
JAPANESE bank Nomura has appointed
its first ever female chief financial offi-
cer (CFO) as part of a reshuffle.
Junko Nakagawa was previously co-
deputy CFO at the lender and, will step
up to join the executive management
board. The changes come as Nomura
diversifies its operations to better com-
pete globally.
Since the purchase of the non-US
wake of the financial crisis, the Tokyo-
based bank has been adopting the
management methods of foreign
firms. Nomura’s current president and
chief operating officer of its wholesale
business Jesse Bhattal will also be pro-
moted, becoming deputy president of
the group.
He was promoted as recently as last
year, when he was plucked from his
post as Asia-Pacific chief executive of
Lehman Brothers to his current role.
550 7 Mar
¥ JUNKO Nakagawa’s appointment to
540 the highest level of Nomura’s board
530
comes as a monumental first for the
Japanese bank.
520 Historically, Tokyo’s boardrooms
have been male-dominated institu-
510
tions where women are rarely seen in
500 senior posts. That is why Nakagawa’s
appointment is such a significant step
forward.
27 Dec 14 Jan 3 Feb 23 Feb “It is rare for a Japanese financial
institution to give this type of promo-
tion to a woman,” said Azuma Ohno, a
brokerage analyst at Credit Suisse
Securities in Tokyo. “It’s an impressive
move.”
Nakagawa previously held various
senior positions at Nomura, most
notably leading the bank’s New
York listing.
She has many years of experi-
ence in investment banking as
an adviser to many of Japan’s
most reputed corporate clients.
Nakagawa first joined
Nomura in 1988 and is a grad-
uate of Kobe University. JUNKO NAKAGAWA

ING pays €2bn

back to state
increased its position to 9.6 per cent over
▲

BANKING
BY RICHARD PARTINGTON
AMSTERDAM-based bank ING said yes-
terday it will pay back €2bn (£1.7bn) in
state funds in two months’ time and
that it plans to repay the remaining aid
it received during the financial crisis by
May 2012.
The lender will pay a 50 per cent
penalty when it returns the cash
early in May, bringing the actual
amount repaid to €3bn.
ING was bailed out by the Dutch state
in a €10bn rescue package at the height
of the financial crisis.
It has already repaid €5m to the gov-
ernment and will now exercise its
option to repay a further €2bn at the
next coupon reset date. The Dutch
Central Bank has given its approval for
a repurchase of the sum in core Tier 1
securities ahead held by the bank.
The payment will leave it with a Tier
1 ratio of above 8.5 per cent, after it had
the year to 31 December 2010.
ING was one of the worst hit lenders
in Europe following the financial crisis,
after suffering heavy losses as a result of
its exposure to the US housing market.
Yet it has hit the road to recovery,
posting a €3.22bn profit for last year
after a €900m loss a year earlier.
It will attempt to repay the final
amount it owes to the Dutch state by
May 2012, as it looks to free itself from
European Commission restrictions.
The Commission ordered ING to split
its banking business from its insurance
operations, with plans to spin out the
latter with two share offerings later this
year. ING chief executive Jan Hommen
said the move marked an “important
milestone”. “The strong recovery of the
banking business in 2010 has enabled us
to accelerate the repurchase of the core
Tier 1 securities from retained earnings,
while maintaining a robust capital posi-
tion post repayment,” he added.

NEWS | IN BRIEF
Fenner sees its profits rise
Engineering firm Fenner yesterday said
the “sharp increase in profitability” seen
in the first-quarter had been maintained
in its conveyor belting and advanced
engineered products divisions in the sec-
ond-quarter. In a pre-close trading state-
ment the firm, based in Hessle, near Hull,
said first half-trading was characterised
by both volume and margin improve-
ments across its principal business units
with increasing benefits from capital
investment programmes and improved
trading conditions at the end of the sec-
ond-quarter.
Trinity Mirror clarification
In our issue dated Friday 4 March we
printed the headline "Trinity Mirror tanks
after costs outstrip savings". Trinity
Mirror's share price did fall by 22 per
cent, but annual profits for 2010 were
actually higher due to cost cutting.
However, the group warned that in 2011
“structural cost savings” would be “more
than offset by general inflationary price
increases, average increase in newsprint
prices in excess of 20 per cent and
investment in [its] businesses.” It said it
expected restructuring costs in 2011 to
be around £10m.
CITYA.M. 8 MARCH 2011
Chaucer talks
continue as
profit halves
▲
INSURANCE
BY ALISON LOCK
FOR-SALE Lloyd’s insurer Chaucer
posted a small profit yesterday and
confirmed its takeover discussions
were continuing.
Chaucer confirmed it was in talks
with potential bidders last month,
which have been named as Guy
Hands’ Terra Firma private equity
firm and a US trade buyer, among
others. Sources told City A.M. yester-
day Hands was weeks away from for-
malising a bid.
Chairman Martin Gilbert said talks
were subject to due diligence.
“It will take time to ascertain
whether an offer for the business may
be forthcoming,” he said. “We contin-
ue to hold discussions with interested
parties with a view to maximising
value for shareholders.”
Chaucer, which covers areas such
as marine, energy and aviation, saw
pre-tax profit more than halve in 2010
to £34.8m from £75m in 2009.
Including foreign exchange losses its
pre-tax profit was £32.9m, below ana-
lysts’ £40m consensus forecast and
down from £42m in 2009. It booked
$85m (£52.2m) in catastrophe losses
and its combined ratio widened to 99
per cent from 93 per cent in 2009. It
also said it expected further losses
from Australia’s January floods.
But chief executive Bob Stuchbery
said the firm’s new strategy was now
“driving decision-making within
Chaucer” and it was targeting rate
rises in its global energy and UK
motor insurance businesses in 2011.
Chaucer’s shares closed down 0.85
per cent at 58.50p.
ANALYSIS l Chaucer
58.50
62 p
7 Mar
58
54
50
27 Dec 14 Jan 3 Feb
Guy Hands’ Terra Firma is a potential bidder for Chaucer
Insurer is still attractive target
CHAUCER’S share price was barely
changed after the company report-
ed a smaller-than-expected profit for
2010. For most investors, last year’s
results are old news: all anyone
cares about is the impending bid.
Chaucer again said it had received
a “number of takeover approaches”
but was tight-lipped otherwise. But
how much would a successful suitor
have to pay?
Despite a lower combined ratio –
the key measure of profitability for
insurance firms – the same funda-
mentals that made the insurer so
attractive to buyers still remain.
Firstly, the diversification of its
underwriting exposure is extremely
reassuring. In 2011, for example,
rate increases of 10 per cent in ener-
gy and 14 per cent in UK motoring
will offset a reduction of 10 per cent
23 Feb
Picture: GETTY
in US property and a broadly flat
picture elsewhere.
Second, its presence in Lloyd’s
offers a perfect entrance for a pri-
vate equity or trade buyer. Thirdly, it
is strongly capitalised, with econom-
ic capital of £435m, including a
buffer of £60m.
For that reason, any buyer will
likely have to pay a premium to its
2011 net tangible asset value, fore-
cast at 54p by analysts at Shore
Capital. A premium of around 20
per cent would likely be justifiable,
meaning the magic number is
around 65p. With the shares trading
at 58.5p at yesterday’s close, buyers
could still make a tidy profit.
BOTTOMLINE
Analysis by David Crow
News 15
NEWS | IN BRIEF
Beazley chairman to step down
Lloyd’s insurer Beazley’s chairman
Jonathan Agnew said yesterday he
would not seek re-election at its 2012
annual general meeting. Agnew, a for-
mer Kleinwort Benson chief executive
and chairman of Nationwide Building
Society, has chaired Beazley since 2003
and joined its board in 2002. He has just
overseen a 60 per cent rise in the firm’s
pre-tax profit in 2010. Beazley said it
has begun the search for a new non-
executive director to become the next
chairman.
China plans insurance exchange
China’s government is planning to launch
a Shanghai-based insurance exchange
to trade different insurance products, a
party member said yesterday. Wu
Dingfu, the head of the China Insurance
Regulatory Commission, told the
National People’s Congress the plan
would further the city’s drive to become
an international financial hub. He did not
specify details of the exchange but state
media reports said the products traded
would be likely to include property, liabil-
ity, reinsurance and group life insurance.
Aegon UK chief set to resign
Otto Thoresen, chief executive of insurer
Aegon’s UK operation, is expected to
leave the company this week, City A.M.
confirmed yesterday. Thoresen, who has
been overseeing a programme of cuts to
save £80m per year, is expected to be
replaced by chief operating officer
Adrian Grace. Four other senior execu-
tives have also left Aegon this year due
to a management restructuring pro-
gramme that has split the business into
two teams covering life and pensions,
and its distribution business.
 16 News
Latin America
drives sales at
Michael Page
▲
RECRUITMENT
BY HARRIET DENNYS
RECRUITER Michael Page has posted
improved profits for 2010, driven by
its expansion into emerging markets.
Gross profit for the year rose 23.8
per cent to £442.2m, with 72 per cent
of the company’s profit generated
overseas.
The fastest-growing market was the
Americas, driven by expansion into
Chile – the firm’s fourth Latin
American market – and the opening
of four new offices in Brazil.
Revenue for the region rose 38.9
per cent to £77.2m and gross profit
rose 48.1 per cent to £56.4m.
Asia Pacific contributed 16 per cent
of the group’s gross profit in 2010,
with revenue 33.9 per cent higher at
£120.3m. Gross profit for the region
rose 53.9 per cent to £72.2m, up from
£42.2m in 2009.
The recruiter also launched its Page
Personnel division in Hong Kong,
Mexico, Russia and Singapore last
year, and opened new businesses in
Qatar, India and Malaysia at the start
of 2011.
The UK posted a 12.7 per cent
increase in gross profit to £124.9m.
Headcount in the UK rose from 1,179
at the start of the year to 1,324 by the
end of December.
Chief executive Steve Ingham said:
“Since the start of 2011 we have seen
strong growth in our EMEA region,
Australia and North America and
steady growth in our UK business,
where conditions remain tough but
stable. We continue to achieve our
highest rates of growth in our Asian
and Latin American regions.”
ANALYSIS l Michael Page
570 p
524.50
7 Mar
550
530
510
27 Dec 14 Jan 3 Feb 23 Feb
Patrick Kennedy said the company’s marketing had paid off
Paddy Power sees profit surge
after World Cup and acquisition
▲
BETTING
BOOKMAKER Paddy Power yesterday
reported a 55 per cent rise in annual
profits, helped by its expansion in
Australia and World Cup betting.
Pre-tax profits rose to €104.2m
(£89.6m) in 2010 from €67.2m in 2009,
the company’s results statement
revealed.
The 2010 figure included a full
year’s contribution from Australian
betting company Sportsbet.
Picture: GETTY
Paddy Power first bought 51 per
cent of Sportsbet in 2009 and took
full control of it in December 2010.
The firm said almost two-thirds of
its profits last year were generated
outside of the Republic of Ireland.
Chief executive Patrick Kennedy
said: “We are pleased with the results
and our marketing has been very
effective. The big thing in the betting
industry would be the relaxation of
betting laws as the US Prohibition
does not work.”
Europe
one way from
£ 49
including taxes
CITYA.M. 8 MARCH 2011
Forth to open
books after
£745m offer
TRANSPORT
▲
FORTH Ports yesterday received a
takeover approach valuing the opera-
tor at £745m from its largest share-
holder, Arcus European
Infrastructure Fund, and has given
Arcus access to its books.
Forth Ports, which owns and oper-
ates seven commercial ports in the
UK, said following talks Arcus had
made an indicative conditional offer
worth 1,630p per Forth Ports share
not already owned by Arcus, which
has a 23.5 per cent stake in the com-
pany.
Arcus has also offered to pay a 20p
per share dividend in respect of
Forth’s 2010 performance, which
would be paid prior to completion of
any offer, Forth said.
“On the basis of this indicative
proposal, the board has agreed that
Arcus can undertake certain confir-
matory due diligence,” Britain’s only
listed ports company said yesterday.
Shares in Forth Ports, which have
risen 13 per cent in the last month,
closed up 5.38 per cent at 1605p.
“Although 1,650p is only an 8.3 per
cent premium compared to Friday’s
close (1,523p), the Forth Ports share
price has been unusually strong of
late, up 14 per cent in the past
month,” said Arbuthnot analyst
Gerald Khoo.
CITYA.M. 8 MARCH 2011 News 17

Hannam left out in the cold for Glencore IPO

INSIDE TRACK
DAVID HELLIER
BANKERS are already salivating over
the sizeable fees associated with the
upcoming flotation of the Swiss-
based commodities group Glencore.
The IPO, if it goes ahead (some
think it may yet stumble), will be list-
ed in London and Hong Kong and
will bring in fees of £300m-plus to a
group of banks that is likely to be led
by Citi, Morgan Stanley and Credit
Suisse.
Absent from the pack will be JP
Morgan and Ian Hannam, the man
many regard as the doyen of the min-
ing sector as far as corporate finan-
ciers are concerned. Hannam’s issue
is that he has been a long-term advis-
er of Xstrata and its chief executive
Mick Davis.
Glencore owns a 34.5 per cent
stake in Xstrata and many expect the
two to be in merger talks shortly
after Glencore floats, if not before,
ruling Hannam offside.
Conflicts such as these are a meas-
ure of success, JP Morgan would say,
but must be frustrating all the same,
especially since the bank was recent-
ly excluded from advising on the LSE
merger with TMX because of its work
for Deutsche Boerse on its deal with
Nasdaq.
The mining sector, in particular,
throws up many conflicts because it
is dominated by a few large powerful
groupings.
“When you’re corporate broker to
as many people as JP is, then you’re
going to be conflicted from time to
time,” said one banking source yester-
day. Just a shame that the conflict
comes on two of the biggest deals so
far this year.
Hannam, though, won’t be out
there begging for work exactly. He’s
currently leading the reconstruction
of Nat Rothschild’s ambitious coal
mining group Vallar, which yesterday
completed the first leg of its merger
with the Indonesian mining group
Bumi, and most resources groups in
town seek his advice, when he isn’t
conflicted.
CVAS AND KPMG
KPMG’s restructuring head Richard
Fleming has invoked the fury of
some JJB landlords by proposing a
creditors’ voluntary agreement that
will hopefully save the sports retail
group from administration.
Some landlords are unhappy about
being paid just 55 per cent of their
current rent if their premises happen
to be one of the 97 stores that JJB feel
aren’t working. But, as Fleming
points out, the alternative is adminis-
tration, and he’s confident creditors
will back the scheme at a meeting in
two weeks’ time. Meanwhile, his
team will soon be bolstered by the
recruitment of Colin Haig from PwC.
david.hellier@cityam.com

Intertek buys “It is great recognition... City A.M. has

a fantastic reputation in the city and
Moody in deal we are proud to have won”
DELOITTE (Professional Services Firm of the Year)

worth £450m
The deal, which is funded entirely in
▲

SUPPORT SERVICES
BY RICHARD PARTINGTON cash, will help Intertek to expand its
presence in Asia and other emerging
SHARES in safety services provider markets, where Moody has significant
Intertek jumped yesterday after it expertise. Intertek said it expects pre-
revealed an 11 per cent profit increase tax cost synergies to reach £6m within
and plans to acquire a rival. three years.
Profit before tax for the FTSE 100 list- Chief executive Wolfhart Hauser
ed firm hit £211.9m for the year to 31 said: “As market conditions continue to
December 2010, up from £191.5m a improve, the enlarged group is very
year earlier. Consensus forecasts had well positioned to continue its record of
estimated pre-tax profits of £209m. strong organic revenue growth of high
The quality control company, which single digits.
tests a range of products from toys and Shares in the firm closed up five per
footwear to computers, also reported cent at 1,994p per share.
revenues of £1.4bn for the period.
Underlying profit at the firm stood at ANALYSIS l Intertek
£206.5m, whilst a final dividend of 2,000 p
1,994.00
18.8p per share will be proposed at the 7 Mar
group’s annual general meeting in May.
Intertek also said it had agreed to buy 1,900
technical inspection and certification
firm Moody International, adding to its
international reach. 1,800
The group will spend £450m on
Moody, buying the Sussex-based compa-
What will you say?
ny from private equity house
27 Dec 14 Jan 3 Feb 23 Feb
Investcorp. Enter the City A.M. Awards 2011 and you could be
recognised as one of the City’s great personalities
ANALYST VIEWS: WILL BUYING MOODY ADD or companies of the year.
Visit our website to see how you can enter:
TO INTERTEK’S VALUE? Interviews by Richard Partington www.CityAMAwards.com
or for more information, please contact Jo Pead:
020 8267 4043 / jo.pead@cityamawards.com
KEVIN LAPWOOD | SEYMOUR PIERCE

“ It is an important strategic move for Intertek since it considerably enhances

its global position in technical safety services and systems certification. Intertek bene-

”
fits from the defensive qualities of its business model, favourable long-term market
trends and the broad geographic and operational spread of activities.

MIKE MURPHY | NUMIS

“
headline sponsor
champagne reception sponsor
It looks like the deal that people have been waiting for given strength of balance
sheet and acquisition activity in the sector. My feeling is that Intertek has arrived at the

”
party in some style having done this one. Strategically, it looks a very good fit and is consis-
tent withits strategy of bulking up business to bulk up scale to become more global. official venue partner

ALEX BARNETT | JEFFERIES

“ We continue to like the group’s end market exposures and believe the Moody
acquisition is a good fit, but current valuation is demanding following the good run into

”
the numbers. Moody is active in energy, industry and certification end markets and
should help round out Intertek’s somewhat subscale business in those segments.
 18 News
Cluff shuts Ivory Coast mine
▲
MINING
BY HARRY BANKS
CLUFF Gold, the Aim-listed miner,
has suspended operations at its
Angovia mine in Ivory Coast due to
shortages of fuel, explosives, cement
and cyanide and will not reopen it
until political stability returns.
Ivory Coast has been in turmoil
since a disputed November election
that threatens to rekindle the West
African state’s 2002 civil war, and has
already drastically cut exports from
the world’s top cocoa producer.
“The Angovia mine will remain on
care and maintenance until Cote
Petrofac sees
big growth in
Middle East
▲
ENERGY
BY HARRY BANKS
OIL services firm Petrofac said yester-
day it was confident about profit
growth of at least 15 per cent this
year, after posting a 58 per cent jump
in profits in 2010.
Petrofac posted a pre-tax profit of
$663.5m (£409.7m) for the year, up
from $432m in 2009 on revenues up
18.8 per cent to $4.35bn.
Underlying net profit also rose 26
per cent, even when gains from de-
merging North Sea oil assets from
the firm’s energy developments last
March were stripped out.
Petrofac generated around three
quarters of its revenue in 2010 from
oil and gas infrastructure projects in
countries such as Algeria, Oman and
Saudi Arabia, but said yesterday the
impact of unrest in the region on its
operations had so far been minimal.
“We’re monitoring the develop-
ments very, very carefully,” said chief
financial officer Keith Roberts in a
call with reporters, adding that the
company had only been affected in
Tunisia so far, where operations had
now returned to normal.
“These countries, their oil and gas
industries are very important hard
Kalahari reveals £756m takeover talks
with Chinese-owned uranium business
▲
ENERGY
BY MARION DAKERS
KALAHARI Minerals yesterday
revealed that it was in discussions
with Chinese state-owned CGNPC
Uranium Resources about a possible
takeover, sending its shares to an all-
time high.
Namibia-focused Kalahari released
a statement yesterday morning say-
ing it was in early-stage talks, but
brought out another statement after
the markets closed with details of
d’Ivoire [Ivory Coast] returns to the
level of political stability required for
restarting operations,” the London-
listed miner said in a statement to
the stock market yesterday.
Angovia, one of two producing
gold mines operated by Cluff Gold in
western Africa, had been targeting
production this year of 25,000 ounces
of gold, up from around 20,000
ounces in 2010.
The mine is smaller than its Kalska
operations in Burkina Faso, which are
aiming to produce 70,000 ounces of
gold this year.
It is also exploring in Sierra Leone
where it hopes its Baomahun project
currency earners for them, so in a
sense whatever happens I think it
would be a national priority to get
continued production of oil and gas
and that is a medium-term positive.”
Analysts at JP Morgan said Petrofac
had given one of the most confident
and bullish outlooks statements they
had seen for a long time in the oil
field services sector, and said the
stock deserves a significant re-rating
once the Middle East outlook
becomes clearer.
Chief executive Ayman Asfari also
hinted that the firm is looking to
expand in Nigeria, after revealing in
a presentation yesterday that its
partner Seven Energy, 15 per cent
owned by Petrofac, has bid for one of
Shell’s four blocks being sold in the
country.
ANALYSIS l Petrofac
1700 p Tokyo Gas will also take a 1.25 per
1475.00
7 Mar
1600
1500
1400
22 Dec 14 Jan 3 Feb 23 Feb
the suitor and the possible bid.
Kalahari said CGNPC’s possible
offer comprised of 290p per share in
cash, valuing the firm’s fully-diluted
share capital at around £756m.
Kalahari’s Aim-listed shares soared
13 per cent to an all-time high of
293.5p after the first statement,
before closing 9.5 per cent up at
285p.
CGNPC’s interest is “in line with its
ongoing strategy to support develop-
ment of important new sources of
natural uranium supply” for China,
can produce 157,000 ounces of gold a
year.
The company, which has a market
value of around £160m, said its
growth strategy remained on track
and that operations in Burkina Faso
were on target.
“Although our gold production will
be affected until we can reopen the
[Angovia] mine, we are confident that
the shortfall in production will be
minimal and will have a limited
effect on our overall budgeted cash-
flow for the year,” it said.
Cluff’s shares fell 9.7 per cent to
close at 109p on Aim yesterday. Its
Toronto-listed shares were flat.
Frank Chapman, chief executive of BG Group, said Tokyo Gas was an important foundation customer
BG Group strikes 20-year deal to supply
Tokyo Gas from its Queensland project
▲
COMMODITIES
BG GROUP said yesterday it had
finalised a 20-year liquefied natural
gas (LNG) supply deal with Tokyo Gas
for 1.2m tonnes per annum of LNG
beginning in 2015.
BG will supply the LNG from its
$15bn (£9.3bn) Queensland Curtis
Island coal seam gas to LNG project
(QCLNG) in Australia’s eastern state,
the statement said.
Though a firm offer has not yet
been made, the firms have set up
break fees and said any bid will be
recommended to shareholders by the
Kalahari board.
Kalahari said it was also in talks to
simplify its shareholder structure
with Extract in a bid to combine
assets with Rio Tinto in Namibia.
The company wants to combine
Extract’s Husab Uranium project
with the neighbouring Rossing
Uranium mine owned by Rio Tinto.
Chariot to raise £90m to
fund Namibia exploration
▲
ENERGY
CHARIOT Oil & Gas said yesterday it
expects to raise about £90m through
a discounted share placing to help
fund its exploration programme as it
plans to drill its first well in offshore
Namibia in late 2011.
The Africa-focused oil and gas
exploration company said yesterday it
has placed about 36m shares at 25p
each, an 18 per cent discount to the
stock’s Friday close.
“The funds will enable Chariot to
which is due online in 2014.
cent equity stake in some of BG’s coal
seam gas reserves as well as a 2.5 per
cent stake in the project’s second LNG
train, BG said.
BG’s QCLNG project was given the
final go-ahead last October after
Australia’s government gave its envi-
ronmental approval.
QCLNG is one of several coal seam
NEWS | IN BRIEF
Vallar ties up Berau purchase
Vallar, the mining investment vehicle
launched by Nathaniel Rothschild, said
yesterday that holders of $450m
(£277m) in 12.5 per cent secured bonds
from Berau Capital Resources should
bring them forward to either be cashed
by Berau or bought by Vallar. The
requirement, made as part of the change
of control of Berau to Vallar, is one of the
final issues following the closure of the
$3bn reverse takeover between Vallar
and Berau and Bumi Resources, both
owned by Indonesia’s Bakrie family. The
two mining companies hold sought-after
thermal coal assets in Indonesia. Vallar is
to take a 75 per cent stake in Berau and
a 25 per cent stake in Bumi, creating a
combined entity named Bumi that will
list on the London Stock Exchange.
CITYA.M. 8 MARCH 2011
participate in a minimum of two
wells and conduct a further 5,000
square kilometres 3D seismic pro-
gramme across areas of specific inter-
est in the central blocks,” the
company said in a statement.
In July of last year, Chariot had said
it expected to start production in
2013-14 after drilling its first well in
offshore Namibia in 2011.
Chariot Oil shares, which have
risen 32 per cent since a resources
update in January, lost 11.6 per cent
to close at 270.5p yesterday.
gas to LNG projects worth roughly
$70bn moving forward around the
the coal port of Gladstone in the next
four to seven years.
Frank Chapman, chief executive of
BG Group, said: “With these agree-
ments we will bring a new source of
natural gas to Japan – the largest LNG
market – and advance the long and
rewarding relationship between our
companies.”
Fiat SpA looks for Russian tie-up
Fiat SpA is in talks with several Russian
automakers to expand in that fast-grow-
ing market and hopes to have a plan in
place next month, chief executive Sergio
Marchionne said yesterday. “We need to
find the optimal way to get it done in
terms of timing, in terms of cost, and I
think we have until April to finalise our
plan,” Marchionne said. “We have people
on the ground looking at this.”
TaGaz had been recently mentioned by
European media as a possible partner for
Fiat in Russia, but Marchionne did not
single out the automaker, saying the
company is in talks with “a number of
people” about how to expand in Russia.
Russian carmaker Sollers unexpectedly
dropped a planned venture with Fiat in
February in favor of Ford Motor.
CITYA.M. 8 MARCH 2011 Economics 19

Banks expect growth in jobs UK expansion to be slow

EMPLOYMENT tions of -22 per cent, representing a Relatively high business confidence
in 2011, warn businesses
▲

BY JULIAN HARRIS two decade low. in London was confirmed by a sepa-

However, overall employers are rate survey released yesterday by
HIRING intentions in financial and expecting an increase in recruitment accountancy group ICAEW. However, the group revised up its

business services are higher than in
any other sector, recruitment group
Manpower revealed today.
The sector is leading the way out of
recession, with positive intentions of
+16 per cent for the second quarter of
this year, according to Manpower’s lat-
est survey. This was its strongest quar-
terly rate since the winter of 2007.
The government sector is the
gloomiest, with negative hiring inten-
in the three months to June, accord-
ing to the survey.
Voluntary redundancy schemes in
local government are frequently over-
subscribed, the report found.
“We believe this demonstrates that
there is actually some confidence
among public sector workers that
they might be able to find opportuni-
ties elsewhere,” said Manpower’s Mark
Cahill.
“London businesses report that
their staff development budget is on
average 0.6 per cent higher than 12
months ago,” its report said.
This is the first sign of recruitment
growth since the end of 2008, ICAEW
said.
While overall business confidence
stands at +9.6 in its index for the
beginning of this year, in London
morale is up at +20.6.
▲
UK ECONOMY
SLUGGISH growth will weigh down the
UK economy this year, although it
should spring back more strongly than
previously expected in 2012, the British
Chambers of Commerce (BCC) predicts
in a fresh forecast published today.
The economy will expand by just 1.4
per cent this year, the BCC said, down
from its previous forecast of 1.9 per
cent.
2012 forecast from 2.1 per cent to 2.3
per cent growth.
“The government is right to perse-
vere with implementing its tough
deficit-cutting plan and we expect the
private sector to absorb these meas-
ures, given the right supportive poli-
cies in the budget,” added the BCC’s
David Frost. “We must avoid heaping
new regulatory burdens and business
taxes on firms at all costs,” he said.

House prices NEWS | IN BRIEF

Euro up as investor morale rises
The euro hit a four-month high against
the dollar yesterday, on the back of

bounce back growing speculation that the European

Central Bank will raise interest rates
next month. “There is amongst central
bankers a solid unity of purpose to con-
tinue to anchor solid inflation expecta-
tions,” ECB president Jean-Claude

in the capital Trichet yesterday told an economic

meeting in Basel, Switzerland. The
Eurozone Sentix index of investor confi-
dence also pushed the euro higher, rising
to 17.1, from 16.7 in February, its highest
rate in over three years.

HOUSING and Humberside (-51 per cent) were Fed officials clash over QE3
▲

BY JULIAN HARRIS
LONDON is rebounding from the
UK’s housing market slump, the
Royal Institution of Chartered
Surveyors (RICS) revealed today.
While house prices continued to
fall throughout the rest of the coun-
try, prices actually rose in the capital
in February, according to the latest
RICS survey.
A positive balance of 14 per cent of
surveyors reported jumps in London
house prices, compared to negative
balances in all other regions.
The south east was the least nega-
tive, with 16 per cent more surveyors
reporting a decline in prices than a
rise.
“Broad trends in the survey indi-
cate an increasing variation in the
housing market across the UK with
London and to a lesser extent the
south east operating in a very differ-
ent orbit,” said RICS spokesperson
Jeremy Leaf.
Wales (-58 per cent) and Yorkshire
the worst performing regions.
London was also the only region to
report positive price expectations for
the next three months.
And new buyer enquiries were up
strongly in the capital, well above
the national average. Only Scotland
recorded a larger increase in new
enquiries for house purchases in
February.
Across the UK, 26 per cent more
surveyors said that prices fell in
February, compared to those who
said prices rose.
However, despite house prices con-
tinuing to drop nationally, there
were signs that the market may be
about to bottom out.
A majority – 56 per cent – of
respondents have reported prices as
level for two months in a row,
according to the section of data that
is not adjusted for seasonal varia-
tions. And less than a third, 32 per
cent, of surveyors reported lower
prices in February – down from 50
per cent in December.
Disagreements between senior Federal
Reserve officials over a controversial
third phase of quantitative easing (QE2)
were voiced yesterday. The Fed’s Dennis
Lockhart said a third phase of monetary
On a national basis, UK house prices are continuing to drop Picture: Micha Theiner stimulus (QE3) could not be ruled out if
oil prices knock the US recovery. Yet his
ANALYSIS l Surveyors reporting change in house prices over last 3 months Fed colleague Charles Evans said “the
hurdle is pretty high” for altering the
20 asset purchasing programme.
% net balance
reporting
10 fall or rise Fixed mortgage rates increase
The average rate of interest on a two-
0 year fixed rate mortgage has increased
to 4.59 per cent, its highest level in ten
-10 months, according to the Moneyfacts
website. Yet tracker rates have dropped
-20 to 3.4 per cent, as lenders look to tempt
mortgage holders onto deals that follow
-30
the central Bank rate of interest.
-40
Upturn in US consumer credit
American consumers have increased
their debt levels for four straight
-50
months, the Federal Reserve revealed
last night. Total debt rose $5bn (£3.1bn)
-60 in January to $2.412 trillion.

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 20 Interview
Inmarsat falls out of shadows with
a bump but looks to a rosy future
Andrew Sukawaty
says clients are
ditching phone calls
in favour of cheaper
emails and texts
A
NDREW Sukawaty is having a busy
day. He awoke to discover his satel-
lite telecoms firm Inmarsat had
tanked 13 per cent, leading the
FTSE 100 fallers by a country mile.
But if the charismatic American – both
chief executive and chairman – is flus-
tered, he isn’t showing it. “The share price
is for the market to decide,” he tells me. “It
reacts the way it reacts.”
Inmarsat offers mobile connectivity
solutions for anything from a single yacht
travelling the Pacific to the thousands of
US troops stationed in Afghanistan. It is a
FTSE 100 powerhouse, but one which
rarely makes headlines. Its share-price
drop yesterday, rather unfairly, generated
the most coverage it has seen in months.
This is despite it providing a huge pro-
portion of the connectivity during the
recent clashes in the Middle East, allowing
journalists, protesters and aid workers to
spread news about the fall of generation-
old governments and the brutal clashes in
Libya.
Inmarsat’s Old Street offices are decorat-
ed by models of the rockets used to launch
its satellites. A giant solar-powered wing
adorns the wall and, more bizarrely, giant
palm trees grow in the foyer, apparently a
throwback to when Shell owned the build-
ing.
A control-room akin to the bridge of the
Star Ship Enterprise features a giant blink-
ing map of the world. It charts where its
thousands of units are located; most of it is
coloured a pale green, with just one or two
signals. A single user broadcasts from the
middle of the Pacific ocean, most likely a
long-haul flight making its way towards
Beijing. But the Middle East is a vivid blue,
with scores of signals beaming out of
Egypt, Libya and Bahrain.
Other hotspots include shipping ports in
Europe and Singapore, Iraq and
Afghanistan – the US government accounts
for 12 per cent of Inmarsat’s business – and
China, where an annual political confer-
ence is taking place. The west coast of
Africa is a hive of activity, with hundreds of
boats signing up to its services as insurance
against the threat of Somali pirates.
Inmarsat has also seen a spike in usage
after events such as the earthquakes in
Haiti and Chile, although Sukawaty says
the impact in terms of revenue is relatively
small, at around $5m (£3m).
CV | ANDREW SUKAWATY
Position: Chairman and chief executive of
Inmarsat since 2004.
Other interests : He is also a non-executive
Chairman of Ziggo, the privately-held
Dutch cable TV company.
Career history: He has previously served
as chief executive and president of Sprint,
chief executive officer of NTL and held a
senior role at AT&T.
Education: Holds a BBA from the universi-
ty of Wisconsin and an MBA from the
University of Minnesota.
“You pick up a newspaper and read
about an event and that’s where our
hotspots are,” he says.
The amount of revenue generated from
any given event can vary dramatically. As a
rule of thumb, if infrastructure in the area
is under-developed (or, as in the case of
Haiti, knocked out), satellite services will
be used for longer and generate more
income.
While these events are attention-grab-
bing, Inmarsat’s bread and butter comes
from more mundane operations – ship-
ping, air travel, government and NGO con-
tracts. And the overall trend is positive:
“People in remote environments, whatever
they may be, want more and more connec-
tivity,” he says. “Do people want data con-
nectivity on an aircraft like they would on
the ground? We think so.”
The problem, at least as far as the mar-
ket is concerned, is that people are shifting
from high cost voice calls to cheaper alter-
natives.
“The trends you see right here at your
desk are the same trends you’ll see in a
ship or an aircraft or in the desert. Rather
than making a phone call, I’m more likely
to send a text or an email.
“It’s cheaper, it’s becoming the way I run
my life and my business. This is exactly
what we’re seeing at sea. There is no magic
or surprise to it, although it does have a
dampening effect on revenue. A three
minute phone call costs a lot more than
20 emails.”
This shift led to revenue growth in the
fourth quarter falling to 8.4 per cent, com-
pared to a full year rise of 12.9 per cent.
WORDS BY STEVE DINNEEN
Andrew Sukawaty Bearing this in mind, were investors right
will soon step down to sell the stock yesterday?
as chief executive and “The thing is, 20 emails becomes 40,
become non-executive becomes 50, becomes 100. So when we put
chairman to move into data services onto a ship with more band-
line with corporate width it starts slowly and grows and grows.
governance guidelines We’re pretty confident that, because the
take-up rate of new terminals has been so
Picture: Micha strong, over an 18-24 month window the
Theiner/City A.M. revenue we’re losing in terms of voice will
pick up in data.”
As in the wider telecoms industry, data
is a major growth area at Inmarsat. The
firm has have experienced 15 per cent
compound annual data growth over the
last 10 years. Data now accounts for
around 90 per cent of its traffic, compared
to 80 per cent for voice just a few years ago.
A new constellation of satellites being
launched in 2013 and 2014 will offer “enor-
mous” bandwidth, increasing the speed at
“Do people which its users can transfer large files –
and the amount Inmarsat can charge for
want data the privilege.
The firm has pulled through the reces-
connectivity sion largely unscathed. Its services are
such that they are shielded from the worst
on an aircraft affects of a downturn.
“The fact is we are a very steady busi-
like they ness. The only variable aspects centre
around things like Haiti. The rest tends to
would on the be very solid and predictable. We don’t
boom in boom times and we don’t go
ground? We down in recessions.”
Sukawaty’s own role in the company has
certainly come under scrutiny. As both chairman
and chief executive, he has come under
think so.” pressure to explain why his firm is not in
line with corporate governance guidelines,
CITYA.M. 8 MARCH 2011
“The reasons
for Harbinger
selling are
very simple.
The markets
crashed and
hedge funds
got hit.”
which recommend the two roles should be
distinct.
“We said at the IPO we would eventually
split those roles. We extended it twice;
once because we made an acquisition, the
next because we had a large shareholder
who was looking to buy the whole of the
company and we didn’t want to do it in the
middle of that. But it’s good to have a sep-
aration between shareholders and the
management of the company.”
September has been slated for the new
chief executive to start. Indications suggest
an internal candidate is most likely – no
headhunters have been hired – but
Sukawaty is giving little away: “There are
names in the hat. I’m not going to tell you
who they are.”
The major shareholder who was eyeing
Inmarsat was, of course, US hedge fund
Harbinger, which accumulated 28 per cent
of the firm before selling the stake down
late last year.
“The reasons for Harbinger leaving are
very straightforward. They came in three
years ago with the intent of buying the
whole company. The markets crashed and
hedge funds got hit. They wanted to focus
on the US so they sold us down.”
The surprise retreat by Harbinger – who
Sukawaty says were “very supportive” –
has created a renewed buzz around
Inmarsat. Now it will remain a UK-run
firm, its newspaper column inches are
likely to creep up. Will its share price fol-
low? “If I could predict share prices I would
be in a different business. We just focus on
the fundamentals and let the share price
do what it does.”
CITYA.M. 8 MARCH 2011 News 21

CITY MOVES | WHO’S SWITCHING JOBS Edited by Harriet Dennys in association with

Nomura Holdings
The Asian investment bank has made a number
of changes to its management team. David
Benson, Nomura’s former chief risk officer, will
become vice chairman of Nomura Holdings.
Wholesale president and COO Jesse Bhattal
(pictured) will become deputy president of
Nomura Holdings and CEO of the Wholesale divi-
sion, and Yasuo Kashiwagi, currently senior man-
aging director for Nomura’s Retail business, will
take on the role of COO for EMEA.
AXA IM Investment Managers, efffective from
Matt Christensen has been appointed 2 May. Christensen will be based in
head of responsible investment for AXA Paris and will report to Christophe
Coquema, member of AXA IM’s man-
agement board and head of markets &
investment strategy.
Navigant
The global advisory firm has appointed
John Lasala as a director in its London-
based real estate practice and manager
of its distressed commercial property
fund. Lasala has previously worked at
Goldman Sachs and Citi Alternative
Investments. He also co-founded
National Zoning Group LLC.
TwentyFour
The fixed interest boutique has recruit-
ed F&C sales director John Magrath as
head of retail distribution. Magrath will
work closely with Gemini Investment
Management, the firm’s current distrib-
utor, and will report to managing part-
ner Mark Holman.
Barclays Corporate
Graham Buckland has been appointed
as head of London Industry Teams at
Barclays Corporate. He moves across
from Barclays Capital, where he has
spent ten years in senior client and
team management roles.
Merrill Lynch
Merrill Lynch Wealth Management has
appointed John Flavin and Keith Ryan
as Financial Advisers. Based in Dublin,
Flavin and Ryan will provide wealth and
investment management services to
Irish High Net Worth Individuals and
Ultra High Net Worth Individuals, cor-
porate and institutional clients. They
both report to Adam Horowitz, Head of
UK, Ireland and Israel Merrill Lynch
Wealth Management.
RBC Capital Markets
RBC Capital Markets, the investment
banking arm of Royal Bank of Canada,
has hired Christophe Duval-Kieffer as a
managing director and global inflation
linked strategist. Duval-Kieffer joins
from Standard Chartered Bank.

To appear in CITYMOVES please email your career

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updates and pictures to citymoves@cityam.com morganmckinley.com

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ANALYSIS l Capital Shopping Centres ANALYSIS l Aviva 469.90 ANALYSIS l WPP 823.45
420
p
480
p 7 Mar 850
p
7 Mar
396.30 460 830
400
7 Mar
440
810
420
380 790
400
770
380
2010 20 Dec 10 Jan 24 Jan 7 Feb 21 Feb 27 Dec 14 Jan 3 Feb 23 Feb 27Dec 14 Jan 3 Feb 23 Feb

CAPITAL SHOPPING CENTRES AVIVA WPP

Societe Generale rates the landlord “hold” and has raised its 12-month tar-
get price by five per cent to 420p. The broker expects the firm’s recent
purchase of the Trafford Centre to give a four per cent lift to cash flow
and dilute net asset value by around one per cent. It also predicts a realis-
tic rental growth of six per cent over the next three years, well below
management expectations of 12 per cent.
UBS rates the insurer “neutral” and has cut its 12-month target price by
40p to 430p. The broker believes that Aviva’s forecast-beating earnings
last week were driven by one-off items rather than underlying perform-
ance. UBS also notes that the firm’s balance sheet is still stretched, which
suggests that dilutive disposals might be in the pipeline, but nevertheless
has raised its dividend growth forecast from five to six per cent.
Goldman Sachs rates the media group “buy” with a target price of £10.55.
WPP’s full-year results last week were slightly ahead of the broker’s esti-
mates, implying 8.5 per cent organic growth in the fourth quarter.
Goldman believes the group can deliver growth of around seven per cent
over the next few years, driven by digital media, with a 0.7 per cent mar-
gin improvement this year coupled with small acquisitions or buybacks.

Oil costs drag the FTSE down Tech stock sell-off

with miners and banks sinking weighs on Wall St
across the board as rising costs as the December low was near 652p Brent crude dipped 0.8 per cent to

THELONDON brought on by soaring oil prices

weakened demand, with three-
and it had a large bounce from
there to 730s.” THENEW YORK $115.20 a barrel.
The Dow Jones industrial average

REPORT
month copper on the London Metal
Exchange down at $9,755.25 a tonne
from Friday’s close.
Miner Antofagasta, which is due
REPORT
The row over reforming Britain’s dropped 79.85 points, or 0.66 per cent,
banking sector is heating up as dis- to 12,090.03. The Standard & Poor’s
cussion of a drastic restructuring 500 Index fell 11.02 points, or 0.83 per
and increasingly assertive political cent, to 1,310.13. The Nasdaq

M
INERS dragged Britain’s top to report results this morning, fell rhetoric draw equally stern respons- Composite Index lost 39.04 points, or

share index lower yesterday,
as escalating violence in the
Middle East and surging oil
prices crimped investor appetite for
risk.
The FTSE 100 index closed down
16.61 points, or 0.3 per cent, at
5,973.78, nearly 70 points below the
session high as the index traded at
80 per cent of its average 90-day vol-
ume.
Crude oil prices were higher, with
Brent above $116 (£71.62) a barrel, as
fighting intensified in Libya, and
with its resulting effect on inflation
investors worried that the fragile
global economic recovery could be
derailed.
“The FTSE seems to be becoming
more and more irrational and
unpredictable as once again we see
it recover from a negative start
before giving up on all the hard
work later in the session,” said
Angus Campbell, head of sales at
Capital Spreads.
“It’s hard to push on to new
ground and maintain gains when
the price of oil remains supported
by the unrest in the oil producing
nations.”
Base metal prices were down
1.2 per cent.
Insurer Old Mutual and engineer
Weir Group, both reporting during
the next session, slipped 0.8 and 0.6
per cent, respectively.
With investors worried that the
unrest in North Africa and the
Middle East could affect larger pro-
ducers, a number of brokers issued
upbeat comment on the integrated
oils sector, which they see benefit-
ting long term from higher oil
prices.
BP added 0.7 per cent and BG
Group rose 0.3 per cent respectively,
boosted as UBS and Citigroup said
they saw surging oil prices as posi-
tive for the sector.
“The move in oil price drives an
average nine per cent and eight per
cent upgrade to our 2011 and 2012
earnings forecasts respectively
[among European Integrated Oils],”
Citigroup said in a note.
Elsewhere, HSBC outperformed a
largely weaker banking sector, with
traders citing technical reasons.
“Buyers entering the fray are see-
ing value at 655p,” said Atif Latif,
director of trading at Guardian
Stockbrokers.
“[This is] more of a technical play
es from the banks.
Part-nationalised Lloyds Banking
Group shed 1.8 per cent. The
Guardian reported the Liberal
Democrats backbench Treasury
Committee has backed a radical
plan to distribute the government-
owned shares in both Lloyds and
Royal Bank of Scotland to the public.
Burberry rose 3.6 per cent as
French peer LVMH launched a
€3.7bn (£3.2bn) bid for Italy’s
Bulgari, a premium of 60 per cent.
Intertek rose five per cent as the
testing firm posted results and
made an acquisition.
Satellite operator Inmarsat shed
13.4 per cent after results missed
market expectations.
ANALYSIS l FTSE 5,973.78
6,100 p 7 Mar
6,050
6,000
6,950
5,900
5,850
5,800
2010 20 Dec 10 Jan 24 Jan 7 Feb 21 Feb
T
ECHNOLOGY stocks sold off yes-
terday, with the Nasdaq teeter-
ing on a key technical support
level as uncertainty over higher
oil prices looks set to drive volatility in
the days ahead.
The Nasdaq composite index
dropped 1.4 per cent and closed just
above its 50-day moving average, a
widely followed technical level that if
breached could signal more declines
in the sector that has helped lead the
market rally.
Also weighing on Nasdaq, commu-
nications equipment maker Ciena
Corp forecast weaker-than-expected
sales, sending its shares sliding 9.2 per
cent to $25.98.
Investors “are jumping on an oppor-
tune seasonal slowdown that typically
happens between March and July for
tech”, said Marc Pado, US market
strategist at Cantor Fitzgerald & Co. “It
has been one of the leadership groups
since August.”
Brent crude has been on investors’
radar as analysts and economists
gauge how it might hurt economic
demand if prices continue to rise.
Crude edged lower yesterday after hit-
ting its highest since September 2008
on the conflict in the Middle East.
1.40 per cent, to 2,745.63.
Wells Fargo said downgrading the
semiconductor sector to “market
weight” from “overweight” was “an
indication of a moderate though still
optimistic view”.
Tech has been a favourite of ana-
lysts, along with other cyclical sectors.
Western Digital jumped 15.6 percent
to $34.68 after the world’s second-
biggest computer hard drive maker
agreed to buy Hitachi’s hard disk drive
operations for about $4.3bn.
Also, TomoTherapy shot up 24.5
percent to $4.57 after Accuray Inc said
it will acquire the smaller rival in the
radiation oncology field.
The CBOE volatility index rose 8.2
per cent to 20.63. Joe Kinahan, chief
derivatives strategist at TD Ameritrade
said investors were insuring against a
possible fall below 1,300 for the S&P.
“If we break this level the S&P could
continue all the way down to 1,275. So
many investors are trying to get ahead
of this by paying up for portfolio pro-
tection in the form of index and equi-
ty options,” said Kinahan.
Volume was about 7.92bn shares on
the Nasdaq, NYSE and AMEX, below
the daily average of 8.47bn for last
year.
 Business Features
22 CITYA.M. 8 MARCH 2011

Risking the City: the economist who

sees no future in political meddling
An interview with the author of
Alchemists of Loss finds him in
worried mood, says Marc Sidwell

L
ONDON will be… an excellent mar- Kevin Dowd says
ket for rottweilers, wire mesh and we should enjoy
tattooed thugs. Docklands in partic- the view while we
ular will revert to its 1970s squalor, still can
albeit with some very expensive buildings
scattered around… [G]iven the crippling Picture: ALEX RIDLEY
burdens under which British citizens
already live, London’s downturn has a fair
chance of tipping the economy over into
national bankruptcy.”
This apocalyptic warning is sounded
towards the end of Kevin Dowd and
Martin Hutchinson’s book Alchemists of
Loss: how modern finance and govern-
ment intervention crashed the financial
system, published last year. It is a vision of
London if the City’s lights go off and, as
the book explains, it is the fate that the
authors believe the financial services
industry is currently on course for, unless
it undergoes significant reform. “We can
say without hesitation that the flaws in
the financial and political systems that
caused the crash have not so far been
remedied and in many cases have been
made far worse.”
Yet in person, Kevin Dowd, a recently-
retired academic economist, seems an
unlikely prophet of doom. No declaimer
of jeremiads, he is serious and softly spo-
ken, bringing a forensic interest in the
historical and human factors at work in
the crisis together with genuine concern
for the dangerous future he sees ahead.
“We could find ourselves in an awful
situation. Very nasty stagflation, reminis-
cent of the early 70s but worse.” And he is
not optimistic about how long Britain has
to get its house in order, saying it could
happen “faster than most people think”, a
long, devastating slide of deterioration
year by year.
It’s a fear that for Dowd is evidently
coloured by his experience of Britain’s
economic failures in the 1970s, and his
fear of a return to that kind of national
catastrophe. “I was appalled by it – watch-
ing the country go down the tubes. It’s
very depressing: I thought we’d kissed
Keynesianism goodbye.” indeed, provides an excellent example of Hutchinson in their book. And in person, A proponent of free banking, Dowd
John Maynard Keynes – and his enthusi- why Dowd is so concerned that nothing Dowd’s greatest concern is that a system makes a persuasive case in the book that
asm for government intervention in the has changed to prevent a new crisis brew- of flawed regulation and political patron- even Milton Friedman was misled on the
economy – is one of the main villains of ing: the international Basel accords on age is being mistaken for a free market. virtues of federal deposit insurance in the
the book. Modern finance is the other, bank regulation set capital requirements He wanted in part to write the book to United States and that recent events
which, Dowd argues, simply lost touch using the VaR measure, which, as the clarify that opposing the one was coher- “should persuade any thinking person
with reality in recent decades. authors write in their book, “virtually ent with support for the other: “as a that the monetary policy ‘experiment’ –
In particular, he tackles a risk measure guarantees that risks will be underesti- defender of capitalism – I don’t want to giving government control of our money
that shot to fame in the early 1990s: mated”. be in the position of defending all this,” – has failed.”
Value-at-Risk (VaR). Loosely speaking, this VaR is just one of the many factors that he says, wearily indicating the world of Perhaps the most frightening aspect of
measures the maximum likely loss. But as alarm Dowd and his co-author bailouts and too big to fail. the book, and Dowd’s position, is that the
Dowd explains, “it gives you a measure of radical changes he calls for are so unlike-
risk in a market that’s not particularly CV | KEVIN DOWD ly. The book states: “Our first choice envi-
risky,” telling you what is the worst you ronment would be one with a commodity
can lose on 99 out of 100 good days, and Lives: Sheffield Education: BA, University of Sheffield; MA in standard, free banking (no central bank)
nothing about what happens on the Economics, University of Western Ontario; PhD in and financial laissez-faire, restrictions on
other, bad day. This crucial failing of VaR Family: Married, with two daughters Economics, University of Sheffield the use of the ‘limited liability’ corporate
is “tail-blindness” – an inability to say any- form, and the most limited government.”
thing about how large losses might be in Title: Emeritus professor, Nottingham University; visit- Publications include: Alchemists of Loss: how modern The authors offer some compromise solu-
an extreme situation. When combined ing professor, Pensions Institute, Cass Business School finance and government intervention crashed the tions as well, but it is not clear that these
with the assumption that losses follow a financial system, with Martin Hutchinson (2010); will really tackle the scale of the prob-
normal, Gaussian distribution rather Associate editor/editorial board: Cato Journal; Measuring Market Risk (2005); An Introduction to lems they see. “Tinkering won’t make the
than a distribution more weighted to International Journal of Intelligent Systems in Market Risk Measurement (2002); Measuring Market slightest difference,” Dowd says. If it takes
extreme events, the VaR provides a false Accounting, Finance, and Management; Journal of Risk (2002); Money and The Market: Essays on Free another collapse to bring about action,
sense of security to anyone using it. Accounting and Finance; Journal of International and Banking (2000); Beyond Value at Risk: The New the results are unlikely to look pretty, as
Despite this fatal flaw, VaR became Dowd suggests. Things may not get that
widely adopted. It is still popular and,
Global Economic Studies; Journal of Risk Science of Risk Management (1998) bad, but is it a risk worth taking?
 Wealth Management | Contracts for Difference
FED CARRIES
ON WITH QE
REGARDLESS
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
E
QUITY markets are attempting to shrug aside the
civil unrest taking hold across north Africa and
the Middle East. Yet the attendant rally in crude
oil has taken both Brent and WTI contracts well
above $100 per barrel, and this is not looking like a tem-
porary phenomenon. Despite this, stocks rebounded
towards the end of last week as investors focused on US
jobs data and began to look forward to a strong non-farm
payroll number.
Ultimately the report was a disappointment.
Although the headline gain of 192,000 jobs was only
slightly below the consensus expectation, there had
been late whispers that it would come in nearer
250,000. The unemployment rate fell to 8.9 per cent,
but the labour force participation rate is stuck at 64.2
per cent, which is a 25-year low. More worryingly, in a
country where around 70 per cent of economic activity
is driven by consumer demand, average earnings fell.
The Federal Reserve has a dual mandate to maintain
price stability and ensure maximum employment. Fed
Chairman Ben Bernanke spoke on a number of occasions
last week and reiterated his views on both inflation and
jobs. By looking at the Fed’s preferred measures, core
CPI and the PCE, the chairman still sees no evidence of
inflation becoming a problem in the foreseeable future,
no matter what has become evident elsewhere in the
world. Bernanke also said that he expects the unemploy-
ment rate to remain high for years to come, with private
sector employment in 2010 barely accommodating fresh
entrants into the labour market.
Since November last year, equities have been lifted
by the New York Fed’s near-daily $8bn permanent open
market operations. This is scheduled to run out at the
end of June, by which time $600bn of stimulus (on top
of the $1.7 trillion from QE1 and “QE lite”) will have been
pumped into the markets via the primary dealers.
With his comments on unemployment and inflation,
Ben Bernanke seems to be setting the stage for a fur-
ther round of Fed asset purchases once QE2 ends this
summer. This should keep equity investors happy.
However, he’ll have to deal with growing anger at home
and abroad as people baulk at his never-ending debt
monetisation which manifests itself in spiralling food
and fuel prices.
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23
Insurance companies
all under one umbrella
Insurance sector
CFDs should be a
smash hit for those
with a long view,
writes Craig Drake
T
HOSE hoping for huge short term
gains to be had from shorting com-
panies with significant underwriting
and re-insurance exposure to either
the Middle East and north Africa (MENA),
or to Christchurch may be disappointed.
Listed companies are understandably cagey
about just how much exposure they have
to those areas, and syndicates with under-
written liability are unlisted. At the same
time, post Piper Alpha, the insurance
industry is no longer singularly exposed to
risk in a single company or area, even in
the event of huge disasters such as the
earthquake that happened in New Zealand
last month. After the North sea oil rig disas-
ter, which revealed the huge deficiencies in
some exposure monitoring systems, things
have changed dramatically, especially with
regards to the interdependency of business
interruption exposure. Popular musician Rihanna speculates in the precipitation risk market Picture: REX
The difficulty in making gains in the
short term through the woes of insurers one containing a basket of 120 non-life ing exposure to a whole sector as opposed
with exposure in the MENA area can, how- companies. Despite the lack of a huge to risk in one particular company. For
ever, be turned on its head for those who range of offerings, according to David example, to avoid the shareholder anger
wish to capitalise on the steady rise of the Morrison at GFT: “Insurance sector specific that have arisen as a result of problems
insurance sector as a whole. Prudential CFDs are extremely useful in terms of giv- with Prudential.”
announces results tomorrow and is expect- Events in Luxembourg may also have
ed to show continued strong growth in ANALYSIS l Prudential shares this month those going long on the insurance sector
profits and revenues. IG Index chief market 720 p further licking their lips in anticipation of
strategist David Jones says: “The insurance juicy rewards. Though the judicial activism
sector CFD allows you to take a position that resulted in the European Court of
towards the sector as a whole, acting in 710 Justice banning insurers from using gender
effect like a little unit trust. There is a selec- to calculate risk will undoubtedly hit us all
tion giving exposure to mostly high street 700 hard, both men and women, with
insurers including Admiral, Hiscox and increased insurance premiums across the
Beasley.” board, market watchers may see insurance
Insurance sector specific CFDs are fairly companies as the only party to benefit
difficult to come by. GFT quote one con- 685 from the decision and as a precursor to an
taining a dozen FTSE 350 non-life even stronger performance from the insur-
insurance companies and IG Index offer 2011 2 Mar Mar 3 Mar 4 Mar 7 ance sector in the year ahead.
BONUS
SPREAD BETS | CFDs | FOREX
REBATE free phone 0800 358 0864
gftuk.com
EDUCATION GFT Global Markets UK Ltd. is autho-
rised and regulated by the Financial
Services Authority. CD03UK.141.012711.
 24 Wealth Management | Contracts for Difference
Hedging your portfolio with CFDs
Philip Salter looks at whether to use CFDs to hedge
I
F YOU don’t already, perhaps you
should consider hedging your portfo-
lio with contracts for difference (CFD).
Provided you have enough time to
actively manage your positions and are
familiar with their workings, CFDs are
worthy of some serious consideration. For
many investors, the idea of using leverage
to hedge is enough to put them off dab-
bling in them, but with proper due dili-
gence of the risks, CFD hedges can make
your holdings safer than they would other-
wise be.
As with spread betting, you can hedge
because you are able to place a bet on
whether assets are going up or down. Also
like spread betting, CFDs are marginal, so
you are able to leverage short positions.
So for a fraction of the actual cost, you
can undertake a hedging strategy.
Combined with accurate stop-loss orders
to limit potential losses, these are a very
useful tool to protect your investments.
Hedging does reduce the prospect for
striking more profits, but it can make
sense to cover your positions. Of course, if
you are certain that your portfolio is
going sky high, confidence might pre-
THE
TIPSTER
CASHING IN
ON UNREST
T
HE satellite telecoms operator
Inmarsat has suffered on the back
of poor fourth quarter earnings, but
increasing concern over the potential
for unrest to spread further still through the
Middle East and north Africa stands to keep
the company’s services very much in
demand. The downturn could therefore
prove to be somewhat short-lived and profit
taking may give way to some opportunistic
buying off the lows. Current IG Markets
price on Inmarsat is 609.9p-611.6p.
Local and regional newspaper publisher
Johnston Press releases earnings figures
clude your desire to hedge your position
by shorting against it. If however you are
like most investors, you might be looking
for a bit of a safer ride, especially given
the volatility of the markets over the last
few years.
Under what conditions does a CFD
hedge make sense? If you think that in
the short-term the market is set to drop,
but want, or have, to hold onto your port-
folio, a hedge against an expected drop in
the short-term makes sense. Angus
Campbell of Capital Spreads gives a hypo-
thetical example: “if you owned 10,000
shares in HSBC, would like to hold onto
them, but fear that a bank levy will have a
major impact on the share price, you
could hedge yourself to the same amount
in a CFD, so any change in the price does-
n’t matter.” This example can be mim-
icked across the asset classes.
According to David Jones of IG Markets
“not many investors use CFDs despite the
fact that they are straightforward.” He
gives two reasons investors should get
into the market. Firstly “if they are expect-
ing a short-term burst of volatility”, but
also “for tax reasons”. On the latter point
on Wednesday, with the shares having
recently recovered from two year lows
around 10p, following some new hires in
the management team. Dips back around
the 10p area should be used to pick up
some shares for a run back towards 14p.
Spread Co offer a spread on Johnston
Press of 11.47p-11.99p.
After Petrofac yesterday mentioned
that they were only being minimally hit by
the unrest in the Middle East, traders
would be well placed to have another look
at the oil fabrications giant. The company
reported that orders had surged and net
profit was up 58 per cent. The share price
has taken a hit since the start of the year,
however we have recently seen a bounce
off the downside support at 1,400p.
Traders will firstly be looking for the share
price to sustain its ground above the
1,400p level before a move back towards
1,600p. Alpari UK is currently quoting
Petrofac at 1,483p-1,484p.
News Corp already owns around 40 per
cent of BSkyB, but is getting closer to the
Alastair McCaig of WorldSpreads draws
attention to the fact that “CFDs can be
used to offset losses incurred against capi-
tal gains tax liabilities”. Assuming the
other side of the hedge is properly lined-
up, the individual will benefit from offset-
ting capital gains tax while gaining on
the original position. Lining up your
hedge requires some consideration. Jones
makes the point that “if investors have
mostly mining stocks sitting in their port-
Balancing the bear folio, shorting the FTSE 100 is not going
and the bull to offer your position a decent hedge.”
Given the daily funding charge, in
most, if not all instances, CFDs are not a
long-term strategy. So when are the best
times to get involved? Senior Trader at
ETX Capital Manoj Ladwa gives three
instances: “when the market or your par-
ticular stock turns against you, when a
particular position rallies sharply and fur-
ther upside could be limited, and when
the overall market is looking weak, react-
ing negatively to any kind of news
whether positive or negative.”
But there are times to avoid CFD
hedges. Ladwa also suggests two scenarios
when you should be wary: “when a posi-
tion has dropped very sharply, the market
often snaps back and by hedging near the
lows, all you are doing is effectively lock-
ing in a large loss”. Also, avoid them
full takeover, as Culture Secretary Jeremy
Hunt gave the all clear to the bid. Analysts
and investors in the market are looking for
950p a share compared to the original
800p the company suggested it would
CITYA.M. 8 MARCH 2011
Using CFDs
to hedge your
position
offers protec-
tion against
the vagaries
of volatile
market condi-
tions
“when the market is still showing bullish
tendencies. A rising tide lifts all ships – so
if the market is going higher, it may be
worthwhile holding off from hedging so
your portfolio can rise with it”.
For those new to CFDs, there are some
technical aspects that you will need to get
to grips with before jumping in. Firstly, it
should be noted that overleverage is a
common mistake for those new to the
game. As such it is worth taking sound
advice and scouring the readily available
sources to find out how much is advisable
to put up as a hedge. Another point worth
stressing is that although there is no
expiry date, the daily funding charge
applied to long positions needs to be fac-
tored in to your calculations. In most cir-
cumstances, these hedges are for the
active short-term trader. Finally, it should
also be remembered that CFDs are subject
to fluctuations in their underlying cur-
rency. In volatile times this can add to the
complexity of working out the potential
costs and profits of the trade.
So with due caution, using CFDs to
hedge your position offers protection
against the vagaries of volatile market
conditions. This only leaves you with the
problem of recognising when the condi-
tions are right to hedge, when it is best to
leave alone, and when it is best to get out.
Inmarsat reaches for
the stars
accept. This alone could be a strong enough
reason to see potential upside to BSkyB’s
price. Capital CFDs quotes 831.5p-833.0p.
Philip Salter
 Where is the price of oil heading?
If you know what affects the price of oil and have an
opinion on which direction it’s going, you should consider
CFD trading with IG Markets.
Take a position on a wide variety of commodities and
other markets with the UK’s number one CFD provider .*
CFD trading can result in losses that exceed
your initial deposit.
Discover more at igmarkets.co.uk or call 0800 195 6300.

* Investment Trends 2010 UK Spread Betting/CFD Report.

 26 Wealth Management | Markets CITYA.M. 8 MARCH 2011

FTSE 100 FTSE 250 FTSE ALLSHARE DOW NASDAQ S&P 500 / 1.1596 0.0035 /$ 1.3960 0.0026
5973.78 11747.87 3102.82 12090.03 2745.63 1310.13 /$ 1.6191 0.0076 /£ 0.8623 0.0025
-16.61 24.86 -6.44 -79.85 -39.04 -11.02 /¥ 133.17 0.7642 /¥ 114.81 0.2950
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 Yule Catto & Co . . . . .220.4 1.7 240.5 108.3 Brewin Dolphin Ho . .184.7 5.0 186.0 114.0 Rexam . . . . . . . . . . . .368.5 2.7 375.4 284.5 Amlin . . . . . . . . . . . . .398.6 3.5 433.0 366.8 BHP Billiton . . . . . . .2470.5 -21.0 2616.0 1684.5 Great Portland Es . . .401.1 6.1 401.3 280.5 Marston's . . . . . . . . . . .95.5 0.1 117.1 89.9
Camellia . . . . . . . . . .9900.0-110.010700.0 6900.0 Smiths Group . . . . .1347.0 3.0 1429.0 1008.0 Beazley . . . . . . . . . . . .127.4 -0.2 139.2 105.4 Centamin Egypt Lt . .131.9 0.8 197.1 118.5 Hammerson . . . . . . . .476.7 2.8 484.1 336.3 Millennium & Copt . .558.0 -5.0 600.5 386.8
Tsy 9.000 11 . . . . .102.92 -0.03 110.8 102.9 CONSTRUCTION & MATERIALS Charles Taylor Co . . .162.5 0.0 240.0 153.0 Brit Insurance Ho . .1071.0 2.0 1071.0 728.0 Eurasian Natural . . .957.5 -16.5 1266.0 818.0 Land Securities G . . .768.5 -4.5 776.5 545.0 Mitchells & Butle . . . .308.2 -1.8 361.0 274.0
Tsy 3.250 11 . . . . .101.86 0.00 103.9 101.8 GENERAL RETAILERS
Balfour Beatty . . . . . .357.3 3.7 359.2 229.8 City of London Gr . . . .92.0 0.0 95.0 65.0 Catlin Group Ltd. . . .369.9 0.6 399.2 319.9 Fresnillo . . . . . . . . . .1633.0 25.0 1682.0 763.5 SEGRO . . . . . . . . . . . .325.2 0.5 341.1 250.2 National Express . . .241.8 -1.8 260.3 213.4
Tsy 2.500 11 . . . . .309.06 0.00 311.1 307.4 Keller Group . . . . . . .620.0 6.0 784.5 515.0 City of London In . . .380.0 -28.0 461.5 266.5 Brown (N.) Group . . .272.8 -0.9 311.2 213.0 CPP Group . . . . . . . . .303.5 0.5 329.0 225.0 Gem Diamonds Ltd. .279.8 -5.3 306.0 186.3 Shaftesbury . . . . . . . .488.6 6.2 490.4 349.3 PartyGaming . . . . . . .185.0 -4.0 334.5 172.1
Tsy 4.250 11 . . . . .100.00 0.00 103.5 100.0 Kier Group . . . . . . . .1266.0 0.0 1383.0 886.5 Close Brothers Gr . . .854.5 13.0 888.5 664.0 Carpetright . . . . . . . . .755.0 15.5 939.0 636.0 Hiscox Ltd. . . . . . . . . .384.6 2.6 399.0 327.9 Hochschild Mining . .680.0 35.0 680.0 234.0 Punch Taverns . . . . . .68.0 -0.2 101.0 58.0
Tsy 9.000 12 . . . . .110.99 0.00 117.5 109.8 Collins Stewart . . . . . .89.0 -1.3 94.0 67.3 Debenhams . . . . . . . . .60.3 -0.9 79.0 53.0 Jardine Lloyd Tho . . .684.0 -4.0 691.0 516.0 Kazakhmys . . . . . . .1448.0 -25.0 1671.0 965.0 SOFTWARE & COMPUTER SERV. Rank Group . . . . . . . .129.5 -0.8 138.5 94.8
Tsy 5.250 12 . . . .105.23 0.02 108.6 105.2 ELECTRICITY Evolution Group . . . . .79.8 0.8 127.0 67.0 Dignity . . . . . . . . . . . .715.0 11.5 726.5 598.0 Lancashire Holdin . . .607.0 -11.5 647.0 442.0 Kenmare Resources . .42.2 0.2 43.0 9.3 Autonomy Corporat 1630.0 -7.0 1975.0 1271.0 Restaurant Group . . .282.9 -5.6 310.9 208.2
Tsy 5.000 12 . . . .104.07 0.01 107.4 104.0 Drax Group . . . . . . . .404.7 -4.6 415.6 326.3 F&C Asset Managem .84.9 -0.1 92.9 47.5 Dixons Retail . . . . . . .17.8 0.2 36.5 17.4 RSA Insurance Gro . .136.8 -0.7 143.5 114.8 Lonmin . . . . . . . . . . .1851.0 -29.0 2113.0 1355.0 Aveva Group . . . . . .1681.0 26.0 1739.0 1044.0 Sportingbet . . . . . . . . .47.4 -1.0 79.9 45.0
Tsy 4.500 13 . . . .106.15 0.04 109.2 105.9 Scottish & Southe . .1215.0 -7.0 1258.0 1010.0 Gartmore Group Lt . .109.3 -0.8 210.0 88.5 Dunelm Group . . . . . .407.0 -6.0 550.0 325.3 Petropavlovsk . . . . .1082.0 -5.0 1365.0 903.5 Computacenter . . . . .429.8 -2.5 457.5 260.0 Stagecoach Group . .211.7 0.1 224.0 160.7
Tsy 8.000 13 . . . . .116.47 0.03 121.3 116.3 LIFE INSURANCE
Hargreaves Lansdo .598.0 2.5 611.5 317.4 Halfords Group . . . . .389.6 2.9 550.0 377.3 Randgold Resource 4880.0 -77.0 6655.0 4730.0 Fidessa Group . . . . .1644.0 14.0 1722.0 1269.0 Thomas Cook Group 188.0 0.9 272.0 171.7
Tsy 2.500 13 . . . .281.68 0.06 281.7 266.9 ELECTRONIC & ELECTRICAL EQ. Helphire Group . . . . . .17.4 1.6 60.3 11.8 Home Retail Group . .210.6 -1.2 295.1 188.5 Aviva . . . . . . . . . . . . . .469.9 6.1 475.6 294.2 Rio Tinto . . . . . . . . .4210.0-104.0 4712.0 2812.0 Invensys . . . . . . . . . . .354.8 0.5 364.3 230.2 TUI Travel . . . . . . . . . .238.9 -0.5 308.4 190.0
Tsy 5.000 14 . . . .109.82 0.04 114.1 109.2 Domino Printing S . .705.0 17.5 714.0 337.9 Henderson Group . . .166.5 1.0 168.6 118.1 Inchcape . . . . . . . . . .391.5 -4.9 414.0 237.1 Legal & General G . . .121.6 -0.2 123.7 72.3 Vedanta Resources 2365.0 -87.0 2934.0 1839.0 Logica . . . . . . . . . . . .135.0 -0.1 147.9 101.7 Whitbread . . . . . . . .1662.0 -17.0 1887.0 1266.0
Tsy 8.000 15 . . . .124.63 0.05 131.6 123.7 Halma . . . . . . . . . . . . .345.2 1.4 366.6 239.5 Highway Capital . . . . . .7.0 0.0 8.5 6.0 JD Sports Fashion . .890.0 2.0 933.5 560.5 Old Mutual . . . . . . . . .133.3 -1.2 145.2 102.0 Xstrata . . . . . . . . . . .1415.0 -10.0 1535.0 845.8 Micro Focus Inter . . .315.2 12.6 546.5 276.0 William Hill . . . . . . . . .187.1 -2.4 216.5 155.5
Tsy 7.750 15 . . . .105.25 -0.64 112.0 76.0 Laird . . . . . . . . . . . . . .162.6 1.2 179.0 98.8 ICAP . . . . . . . . . . . . . .527.0 1.0 570.5 341.6 Kesa Electricals . . . .129.5 2.9 174.0 99.2 Phoenix Group Hol . .656.5 -2.5 758.0 584.5 Misys . . . . . . . . . . . . .328.1 0.0 354.8 217.0
Tsy 4.750 15 . . . .109.66 0.06 114.7 108.6 MOBILE TELECOMS AIM 50
Morgan Crucible C . .308.9 -7.1 317.9 167.5 IG Group Holdings . .465.0 4.0 553.0 362.4 Kingfisher . . . . . . . . .245.3 1.2 271.3 198.5 Prudential . . . . . . . . .700.5 -10.0 742.0 489.2 Sage Group . . . . . . . .275.3 -2.9 302.0 222.7
Tsy 2.500 16 . . . .317.54 0.04 318.5 296.9 Renishaw . . . . . . . . .1684.0 -11.0 1715.0 607.0 Intermediate Capi . . .314.0 -3.5 360.3 240.4 Marks & Spencer G . .335.9 -0.4 427.5 326.4 Resolution Ltd. . . . . .290.3 0.1 328.6 211.3 Inmarsat . . . . . . . . . . .593.0 -91.5 821.0 587.0 SDL . . . . . . . . . . . . . . .650.0 16.5 678.5 421.0 Abcam . . . . . . . . . . . .373.0 -1.0 393.0 213.0
Tsy 4.000 16 . . . .106.23 0.01 111.4 103.6 Spectris . . . . . . . . . .1434.0 29.0 1451.0 740.5 International Per . . . .316.5 -0.2 386.6 183.3 Mothercare . . . . . . . .478.1 2.7 645.0 472.2 St James's Place . . . .317.3 -3.6 322.3 204.2 Vodafone Group . . . .178.7 -0.2 181.7 129.5 Telecity Group . . . . . .490.0 9.0 532.5 365.0 Albemarle & Bond . .310.0 8.0 334.0 218.0
Tsy 12.000 17 . . .128.06 0.00 185.9 126.8 International Pub . . . .113.2 -0.1 118.3 110.7 Next . . . . . . . . . . . . .1941.0 4.0 2344.0 1924.0 Standard Life . . . . . . .238.4 1.0 243.3 173.0 Amerisur Resource . .25.3 -0.3 27.0 11.5
Tsy 1.250 17 . . . .108.62 -0.01 111.1 104.0 EQUITY INVESTMENT INSTRUM. NONEQUITY INVESTM. COMM. SUPPORT SERVICES
Investec . . . . . . . . . . .474.5 9.9 562.0 429.2 Sports Direct Int . . . .185.5 4.3 188.2 92.3 MEDIA Archipelago Resou . . .63.5 0.1 64.8 32.3
Tsy 8.750 17 . . . .134.26 -0.01 142.2 132.9 Aberforth Smaller . . .670.5 8.5 697.0 495.0 IP Group . . . . . . . . . . . .46.3 0.8 53.0 28.0 WH Smith . . . . . . . . . .466.0 -1.5 523.0 398.2 Genesis Emerging . .503.0 0.0 568.0 427.0 Aggreko . . . . . . . . . .1505.0 21.0 1685.0 1045.0 ASOS . . . . . . . . . . . .1821.0 25.0 1895.0 456.3
Tsy 5.000 18 . . . . .111.27 0.03 117.6 108.2 Alliance Trust . . . . . .355.4 -4.4 377.9 293.5 Jupiter Fund Mana . .325.4 1.7 337.3 180.3 4imprint Group . . . . .265.0 0.0 275.0 140.5 Ashtead Group . . . . .186.5 4.1 187.6 77.0 Aurelian Oil & Ga . . . .92.0 2.5 93.3 35.8
Tsy 4.500 19 . . . .107.12 -0.04 113.8 103.5 HEALTH CARE EQUIPMENT & S. OIL & GAS PRODUCERS
Bankers Inv Trust . . .418.5 4.5 427.7 337.0 LMS Capital . . . . . . . . .57.0 1.0 59.0 40.0 Aegis Group . . . . . . .140.0 -0.5 148.3 103.6 Atkins (WS) . . . . . . . .710.0 10.0 792.5 578.0 Avanti Communicat .523.0 0.5 735.0 375.0
Tsy 3.750 19 . . . .101.25 -0.04 107.7 97.0 BH Global Ltd. GB .1093.0 3.0 1174.0 1071.0 London Finance & . . .19.5 0.0 21.5 16.5 Smith & Nephew . . . .710.5 -4.0 742.0 537.5 Bloomsbury Publis . .126.3 1.8 127.0 105.3 Afren . . . . . . . . . . . . . .162.4 0.4 164.2 79.2 Babcock Internati . . .581.5 5.5 635.0 492.8 Avocet Mining . . . . . .244.0 -7.0 253.8 95.5
Tsy 4.750 20 . . . .108.50 -0.05 115.9 104.7 BH Global Ltd. US . . . .10.8 0.1 11.6 10.7 London Stock Exch .880.5 -9.0 933.0 544.0 Synergy Health . . . . .887.0 3.5 948.0 562.5 British Sky Broad . . .833.5 8.5 833.8 536.5 BG Group . . . . . . . . .1480.0 4.0 1524.0 984.0 Berendsen . . . . . . . . .490.3 10.2 498.1 360.2 Blinkx . . . . . . . . . . . . . .91.5 1.5 102.0 12.3
Tsy 2.500 20 . . . .321.32 -0.01 325.7 296.2 BH Macro Ltd. EUR . . .16.6 0.2 17.2 15.8 Man Group . . . . . . . . .280.5 2.5 311.0 201.9 Centaur Media . . . . . . .65.3 -0.1 73.0 45.8 BP . . . . . . . . . . . . . . . .497.5 3.6 655.4 302.9 Bunzl . . . . . . . . . . . . .731.0 -5.5 783.0 658.0 Borders & Souther . . .61.5 -0.5 93.0 45.8
Tsy 8.000 21 . . . .136.09 -0.05 147.1 133.6 HHOLD GDS & HOME CONSTR.
BH Macro Ltd. GBP 1686.0 6.0 1785.0 1630.0 Paragon Group Of . .179.0 4.2 191.5 114.4 Chime Communicati .267.8 1.8 281.8 158.0 Cairn Energy . . . . . . .441.2 2.2 493.2 365.7 Capita Group . . . . . . .782.0 -4.5 826.0 635.5 BowLeven . . . . . . . . .352.8 -7.0 398.0 103.0
Tsy 4.000 22 . . . .101.01 -0.06 108.4 96.2 BH Macro Ltd. USD . . .16.5 -0.0 17.1 15.8 Provident Financi . . .976.0 0.0 1033.0 728.5 Barratt Developme . .102.1 -1.0 137.7 70.1 Creston . . . . . . . . . . . .95.5 -1.0 105.0 78.5 EnQuest . . . . . . . . . . .149.0 2.1 150.6 89.3 Carillion . . . . . . . . . . .368.1 0.6 399.3 291.2 Caledon Resources .102.0 -1.0 107.0 23.3
Tsy 1.875 22 . . . . .113.92 -0.07 117.8 108.5 BlackRock World M .784.5 7.0 815.0 533.0 Rathbone Brothers .1194.0 19.0 1257.0 762.5 Bellway . . . . . . . . . . . .669.5 1.5 809.0 511.0 Daily Mail and Ge . . .534.5 -3.0 594.5 433.0 Essar Energy . . . . . .515.0 -1.0 589.5 383.0 De La Rue . . . . . . . . .752.0 11.5 984.0 549.5 Cape . . . . . . . . . . . . . .487.5 2.0 487.5 190.5
Tsy 2.500 24 . . . .282.41 -0.08 286.9 258.6 BlueCrest AllBlue . . .171.1 0.5 174.5 159.0 Real Estate Credi . . . . .1.2 0.1 2.5 0.9 Exillon Energy . . . . . .440.0 0.6 454.6 166.0 Electrocomponents .279.1 0.4 280.4 197.0 CareTech Holding . . .202.0 0.3 422.0 196.0
Tsy 5.000 25 . . . .109.84 -0.05 118.5 104.5 British Assets Tr . . . .136.0 1.0 140.5 105.0 RSM Tenon Group . . .45.5 0.5 66.3 38.0 Heritage Oil . . . . . . . .274.5 3.5 581.0 261.7 Experian . . . . . . . . . . .780.0 6.0 819.0 572.0 Conygar Investmen .117.0 1.0 124.3 101.3
Tsy 1.250 27 . . . .107.32
Tsy 4.250 27 . . . .100.12
-0.07
0.00
111.2
108.8
100.5
95.6
British Empire Se . . .490.5 5.0 512.0 404.1
Caledonia Investm .1771.0 1.0 1928.0 1532.0
S & U . . . . . . . . . . . . .632.5 0.0 640.0 482.5
Schroders . . . . . . . .1794.0 -2.0 1922.0 1154.0
MAIN CHANGES UK 350 JKX Oil & Gas . . . . . .319.6 3.3
Premier Oil . . . . . . . .2079.0 3.0
329.3 223.2
2140.0 1085.0
Filtrona PLC . . . . . . . .318.0 1.5
G4S . . . . . . . . . . . . . . .268.7 -1.3
319.5 193.4
283.5 237.7
Cove Energy . . . . . . . .92.0 -1.5
Daisy Group . . . . . . . .97.5 0.0
112.8
108.5
37.5
84.5
Tsy 6.000 28 . . . .121.97 0.01 132.7 117.7 City of London In . . .287.9 1.4 296.0 233.7 Schroders (Non-Vo .1426.0 3.0 1508.0 950.5 Royal Dutch Shell . .2219.0 -6.0 2267.5 1624.0 Hays . . . . . . . . . . . . . .129.4 -0.6 133.6 88.4 Desire Petroleum . . . .40.0 0.5 168.5 32.3
Tsy 4.125 30 . . . .268.87 -0.03 274.4 246.3 Dexion Absolute L . .150.5 0.0 151.0 131.2 Tullett Prebon . . . . . .426.0 1.3 433.2 298.0
Risers % Fallers %
Royal Dutch Shell . .2187.5 -3.0 2251.0 1554.0 Homeserve . . . . . . . .472.6 2.6 487.5 329.0 EMIS Group . . . . . . . .465.0 0.0 485.0 303.5
Tsy 4.750 30 . . . .105.44 0.04 115.0 101.1 Edinburgh Dragon . .233.4 1.1 262.1 197.6 Walker Crips Grou . . .47.5 0.0 50.5 45.0 Hochschild Mining . .680.0 5.4 Inmarsat . . . . . . . . . . .593.0 -13.4 Salamander Energy .313.6 -1.7 317.6 204.9 Howden Joinery Gr . .109.5 -5.8 127.5 56.8 Encore Oil . . . . . . . . .123.0 -2.0 151.5 15.0
Tsy 4.250 32 . . . . .98.60 0.04 107.8 94.5 Edinburgh Inv Tru . . .437.5 -0.2 467.2 366.0 Forth Ports . . . . . . .1605.0 5.4 Howden Joinery Gro .109.5 -5.0 Soco Internationa . . .352.5 5.2 484.2 292.0 Intertek Group . . . . .1994.0 95.0 2059.0 1324.0 Faroe Petroleum . . . .185.0 -1.0 218.3 106.0
Tsy 4.250 36 . . . . .97.91 0.04 107.4 93.6 Electra Private E . . .1635.0 10.0 1719.0 1177.0 FIXED LINE TELECOMS Tullow Oil . . . . . . . . .1493.0 9.0 1508.0 991.5 Michael Page Inte . . .524.5 -11.0 565.5 346.4 Gulfsands Petrole . . .336.0 -6.0 401.5 244.3
Tsy 4.750 38 . . . .106.16 0.04 116.5 101.5 Intertek Group . . . . .1994.0 5.0 Vedanta Resources .2365.0 -3.6
F&C Inv Trust . . . . . .313.8 0.4 316.8 251.4 BT Group . . . . . . . . . .183.8 -0.2 190.8 109.9 Imagination Techno .471.4 4.3 Supergroup . . . . . . .1489.0 -3.1 Mitie Group . . . . . . . .204.7 -0.5 241.1 188.7 GW Pharmaceutical .107.0 3.0 141.0 83.0
Tsy 4.500 42 . . . .102.40 0.00 112.8 97.8 Fidelity China Sp . . . .109.5 -1.0 128.7 92.3 Cable & Wireless . . . .49.8 -0.3 63.7 44.4 OIL EQUIPMENT & SERVICES Premier Farnell . . . . .308.8 4.3 310.3 190.9 Hamworthy . . . . . . . .490.0 3.0 502.0 256.8
Micro Focus Intern . .315.2 4.2 Serco Group . . . . . . .599.5 -3.1
Fidelity European . .1160.0 3.0 1170.0 916.0 Cable & Wireless . . . .70.9 -0.3 100.0 60.5 Amec . . . . . . . . . . . .1204.0 12.0 1251.0 760.5 Regus . . . . . . . . . . . . .107.6 1.9 120.0 66.1 Hargreaves Servic . .982.0 17.0 983.0 556.5
AEROSPACE & DEFENCE Fidelity Special . . . . .581.5 3.5 595.0 503.0 COLT Group SA . . . .148.1 -2.0 156.2 109.0 Burberry Group . . . .1200.0 3.6 Hikma Pharmaceutic 737.5 -3.0 Hunting . . . . . . . . . . .798.5 3.5 806.0 439.4 Rentokil Initial . . . . . . .87.8 -1.0 138.5 87.4 Healthcare Locums . .112.5 0.0 0.0 0.0
BAE Systems . . . . . .325.1 0.8 388.8 294.7 Herald Inv Trust . . . . .529.0 5.0 541.0 349.8 TalkTalk Telecom . . .139.8 -3.1 168.3 108.5 Hansen Transmissio . .41.3 3.3 Travis Perkins . . . . . .999.0 -2.8 John Wood Group . .662.0 -1.0 670.0 293.1 RPS Group . . . . . . . . .204.0 3.4 242.0 169.8 Immunodiagnostic . .839.5 24.5 975.0 575.0
Chemring Group . . .3325.0 24.0 3663.0 2598.0 HSBC Infrastructu . . .117.2 0.4 121.2 112.0 Fenner . . . . . . . . . . . .352.0 3.2 Ocado Group . . . . . . .207.0 -2.6 Lamprell . . . . . . . . . . .312.2 -0.2 390.0 195.3 Serco Group . . . . . . .599.5 -19.0 651.0 529.5 James Halstead . . . . .422.5 -8.4 450.0 283.3
FOOD & DRUG RETAILERS
Cobham . . . . . . . . . . .229.7 5.4 275.9 192.3 Impax Environment .119.2 -1.8 130.5 106.5 Genus . . . . . . . . . . . . .982.5 3.2 Rio Tinto . . . . . . . . .4210.0 -2.4 Petrofac Ltd. . . . . . .1475.0 9.0 1685.0 990.7 Shanks Group . . . . . .115.4 0.8 126.7 92.0 Kalahari Minerals . . .285.0 24.8 309.0 142.0
Meggitt . . . . . . . . . . . .354.3 0.7 380.9 261.7 JPMorgan American .885.0 3.0 909.0 673.0 Booker Group . . . . . . .58.5 1.3 60.6 38.6 Elementis . . . . . . . . . .158.0 2.9 Morgan Crucible Co .308.9 -2.3 SIG . . . . . . . . . . . . . . .128.3 -1.2 153.2 90.7 London Mining . . . . .380.0 -2.0 418.8 194.0
QinetiQ Group . . . . . .126.1 0.1 142.0 96.7 JPMorgan Asian In . .219.2 -1.0 250.8 182.5 Greggs . . . . . . . . . . . .493.0 -2.9 501.5 417.8 PERSONAL GOODS SThree . . . . . . . . . . . .425.0 5.0 429.8 231.1 Lonrho . . . . . . . . . . . . .17.0 0.5 19.0 9.4
Rolls-Royce Group . .600.0 -4.0 665.0 535.0 JPMorgan Emerging .571.0 2.5 639.0 479.5 Morrison (Wm) Sup .279.8 -1.1 306.3 257.6 Price Chg High Low Price Chg High Low Burberry Group . . . .1200.0 42.0 1235.0 612.5 Travis Perkins . . . . . .999.0 -29.0 1127.0 709.0 M. P. Evans Group . .442.4 2.4 500.5 317.5
Senior . . . . . . . . . . . . .143.0 0.8 159.5 90.0 JPMorgan European .864.0 6.0 885.0 606.0 Ocado Group . . . . . . .207.0 -5.5 285.0 123.5 PZ Cussons . . . . . . . .345.5 -4.5 409.0 260.1 Wolseley . . . . . . . . .2120.0 -41.0 2261.0 1223.0 Majestic Wine . . . . . .405.0 0.3 430.0 255.0
Ultra Electronics . . .1689.0 -8.0 1895.0 1472.0 JPMorgan Indian I . . .409.6 -5.8 502.0 377.2 Sainsbury (J) . . . . . . .367.6 -1.1 395.0 312.9 Berkeley Group Ho .1026.0 3.0 1036.0 751.0 Euromoney Institu . .726.0 -4.0 736.0 463.0 Supergroup . . . . . . .1489.0 -48.0 1820.0 535.0 May Gurney Integr . .255.0 0.0 264.0 177.0
JPMorgan Russian .700.0 9.0 755.0 502.0 Tesco . . . . . . . . . . . . .399.1 -2.7 454.4 377.5 Bovis Homes Group .447.2 -2.8 460.0 326.6 Future . . . . . . . . . . . . . .26.5 -1.0 30.0 15.8 TECHNOLOGY HARDW. & EQUIP. Monitise . . . . . . . . . . . .23.8 0.3 27.0 14.3
ALTERNATIVE ENERGY Law Debenture Cor . .355.8 3.4 362.9 273.3 PHARMACEUTICALS & BIOTECH ARM Holdings . . . . . .590.0 6.5 651.0 222.5 Mulberry Group . . . .1215.0 0.0 1388.0 180.5
Mcbride . . . . . . . . . . .141.0 1.5 244.9 114.0 Haynes Publishing . .234.0 0.0 262.5 202.5
Hansen Transmissi . . .41.3 1.3 108.0 39.1 Mercantile Inv Tr . . .1114.0 1.0 1137.0 840.0 FOOD PRODUCERS Huntsworth . . . . . . . . .75.8 0.8 87.5 65.0 AstraZeneca . . . . . .2980.0 -6.5 3385.0 2772.0 CSR . . . . . . . . . . . . . .376.4 -5.2 495.0 280.9 Nanoco Group . . . . . . .81.5 -0.8 115.8 77.8
Persimmon . . . . . . . .457.3 -2.6 507.5 336.5
Merchants Trust . . . .406.5 0.1 425.0 320.0 Associated Britis . . .975.0 -3.0 1182.0 918.0 Reckitt Benckiser . .3129.0 -37.0 3655.0 3037.0 Informa . . . . . . . . . . . .427.5 -8.5 461.1 342.1 BTG . . . . . . . . . . . . . .212.0 -2.4 263.0 154.2 Imagination Techn . .471.4 19.2 486.6 215.1 Nautical Petroleu . . .429.0 -5.0 547.0 45.0
AUTOMOBILES & PARTS Monks Inv Trust . . . .342.0 -0.1 363.0 275.5 Cranswick . . . . . . . . .827.0 -6.0 907.5 784.0 Genus . . . . . . . . . . . . .982.5 30.5 984.5 677.5 Pace . . . . . . . . . . . . . .220.5 0.1 231.8 148.6 Nichols . . . . . . . . . . . .465.0 -7.4 495.0 332.5
Redrow . . . . . . . . . . . .127.1 -0.1 151.9 97.5 ITE Group . . . . . . . . . .248.5 4.0 252.2 130.6
GKN . . . . . . . . . . . . . .205.8 1.0 237.1 109.3 Murray Income Tru . .639.0 0.0 649.0 518.0 Dairy Crest Group . . .367.1 3.2 424.9 339.7 Taylor Wimpey . . . . . . .40.6 -0.2 44.0 22.3 ITV . . . . . . . . . . . . . . . . .91.7 -0.3 93.5 48.3 GlaxoSmithKline . . .1173.0 1.5 1318.5 1095.0 Spirent Communica .149.9 -2.2 160.3 102.8 Numis Corporation . .119.0 -1.5 158.5 109.0
Murray Internatio . . .924.0 -5.0 966.0 791.5 Devro . . . . . . . . . . . . .288.8 3.3 289.4 161.0 Johnston Press . . . . . .12.0 0.3 33.5 9.1 Hikma Pharmaceuti .737.5 -22.5 900.0 576.0 Patagonia Gold . . . . . .55.0 -2.5 59.3 12.5
BANKS Perpetual Income . . .253.5 0.0 262.0 203.0 Premier Foods . . . . . . .26.3 -0.2 34.4 16.0 INDUSTRIAL ENGINEERING Shire Plc . . . . . . . . . .1757.0 9.0 1763.0 1321.0 TOBACCO Pursuit Dynamics . . .298.3 13.5 700.0 180.0
Mecom Group . . . . . .263.0 -1.5 288.0 162.0
Barclays . . . . . . . . . . .308.0 -5.2 383.2 255.4 Polar Cap Technol . .354.0 0.0 391.2 266.0 Tate & Lyle . . . . . . . . .550.0 5.0 599.5 409.1 Bodycote . . . . . . . . . .325.0 0.0 329.6 179.7 Moneysupermarket. . .91.6 -0.4 92.1 61.0 British American . .2468.5 -14.5 2521.0 1959.0 Rockhopper Explor .234.0 -12.3 510.0 37.0
HSBC Holdings . . . . .657.5 5.0 730.9 596.2 RIT Capital Partn . . .1297.0 12.0 1328.0 1027.0 Unilever . . . . . . . . . .1835.0 4.0 1997.0 1688.0 Pearson . . . . . . . . . .1100.0 9.0 1128.0 864.0 REAL ESTATE INVEST. & SERV. Imperial Tobacco . .1904.0 -38.0 2154.0 1753.0 RWS Holdings . . . . . .367.5 -7.5 375.0 239.0
Charter Internati . . . .757.0 -2.0 853.5 567.0
Lloyds Banking Gr . . .61.0 -1.1 77.6 50.5 Schroder Asia Pac . .214.3 -0.2 233.6 177.5 Fenner . . . . . . . . . . . .352.0 11.0 386.7 183.3 Reed Elsevier . . . . . .551.0 3.5 590.5 460.6 Capital & Countie . . .158.8 -1.2 160.5 100.0 Songbird Estates . . .140.5 -1.0 180.2 133.8
Scottish Inv Trus . . . .503.0 5.0 516.5 401.5 FORESTRY & PAPER Daejan Holdings . . .2800.0 -1.0 2919.0 2157.0 TRAVEL & LEISURE Sterling Energy . . . . . .72.5 0.3 166.0 51.3
Royal Bank of Sco . . .43.8 -0.3 58.1 37.6 IMI . . . . . . . . . . . . . . . .950.5 -6.5 960.5 578.0 Rightmove . . . . . . . . .959.5 0.5 965.8 596.5
Standard Chartere .1682.0 -14.5 1950.0 1514.5 Scottish Mortgage . .715.0 0.0 742.5 533.0 Mondi . . . . . . . . . . . . .568.5 1.0 575.0 367.6 Melrose . . . . . . . . . . .316.8 3.5 329.0 192.1 STV Group . . . . . . . . .151.5 -1.0 154.7 48.0 F&C Commercial Pr .103.0 0.0 107.0 88.0 Avis Europe . . . . . . . .209.0 0.6 284.7 190.0 Valiant Petroleum . . .636.0 -2.5 761.5 504.0
SVG Capital . . . . . . . .249.3 -0.9 253.0 137.8 Rotork . . . . . . . . . . .1699.0 -1.0 1895.0 1254.0 Tarsus Group . . . . . .144.5 2.5 146.7 107.0 Grainger . . . . . . . . . . .104.2 -0.7 145.0 86.3 Betfair Group . . . . . . .887.5 10.0 1550.0 865.5 Vatukoula Gold Mi . . .174.0 11.3 227.0 84.0
BEVERAGES Temple Bar Inv Tr . . .892.0 13.0 913.5 717.0 GAS, WATER & MULTIUTILITIES Helical Bar . . . . . . . . .275.5 0.7 358.8 262.0 Carnival . . . . . . . . . .2568.0 -22.0 3153.0 2037.0 Young & Co's Brew . .593.8 0.5 670.0 495.0
Spirax-Sarco Engi . .1943.0 23.0 2025.0 1344.0 Trinity Mirror . . . . . . . .61.8 -2.8 170.1 61.8
AG Barr . . . . . . . . . .1088.0 19.0 1304.0 856.0 Templeton Emergin .624.0 2.0 689.5 497.0 Centrica . . . . . . . . . . .336.2 -0.5 346.1 264.5 Weir Group . . . . . . .1779.0 -11.0 1861.0 846.0 United Business M . .626.0 -5.0 725.0 480.1 London & Stamford .128.4 0.3 133.5 110.3 Compass Group . . . .541.0 1.0 594.0 492.6
Britvic . . . . . . . . . . . . .390.9 9.2 518.0 364.5 TR Property Inv T . . .175.3 1.6 175.3 132.3 International Pow . . .324.8 6.1 448.6 284.5 Ferrexpo . . . . . . . . . . .406.6 -8.8 447.9 219.0 UTV Media . . . . . . . . .139.8 4.8 151.0 95.0 Savills . . . . . . . . . . . . .380.4 0.4 399.0 273.1 Domino's Pizza UK . .476.0 -4.7 586.0 324.7
Diageo . . . . . . . . . . .1195.0 1.0 1258.0 1025.0 TR Property Inv T . . . .84.4 0.5 84.4 59.2 National Grid . . . . . . .573.5 1.5 596.2 484.2 Talvivaara Mining . . .557.5 -1.5 622.0 342.4 Wilmington Group . .165.0 0.0 183.0 129.0 St. Modwen Proper . .174.5 4.5 201.0 135.4 easyJet . . . . . . . . . . . .354.0 0.5 496.5 348.6
SABMiller . . . . . . . . .2080.5 7.0 2306.0 1827.0 Witan Inv Trust . . . . .507.5 1.5 522.0 409.9 Northumbrian Wate .328.8 2.0 361.5 252.8 WPP . . . . . . . . . . . . . .823.0 8.5 846.5 608.0 UK Commercial Pro . .79.3 0.6 85.0 72.8 Enterprise Inns . . . . . .91.3 -0.6 139.3 84.4
Pennon Group . . . . . .627.0 0.5 650.0 482.9 INDUSTRIAL TRANSPORTATION Unite Group . . . . . . . .210.3 -0.7 270.0 163.0 FirstGroup . . . . . . . . .365.9 -3.1 412.6 342.8
FINANCIAL SERVICES Yell Group . . . . . . . . . . .8.6 1.1 59.0 5.8
CHEMICALS Severn Trent . . . . . .1508.0 0.0 1515.0 1086.0 Go-Ahead Group . . .1443.0 -2.0 1490.0 1042.0
BBA Aviation . . . . . . .209.9 4.9 240.8 170.1 REAL ESTATE INVEST. TRUSTS
AZ Electronic Mat . . .305.0 -4.9 320.0 249.0 3i Group . . . . . . . . . . .303.9 -3.1 340.0 251.9 United Utilities . . . . .585.0 -4.0 628.5 507.0 MINING Greene King . . . . . . .459.1 -2.9 491.4 376.2
Forth Ports . . . . . . . .1605.0 82.0 1614.0 1112.0
Croda Internation . .1649.0 41.0 1663.0 900.0 3i Infrastructure . . . .120.1 -0.1 125.2 104.1
GENERAL INDUSTRIALS Stobart Group Ltd . . .144.1 -0.9 163.6 132.0 African Barrick G . . .568.0 2.0 670.0 501.5 Big Yellow Group . . .338.3 0.7 353.3 284.4 InterContinental . . .1322.0 3.0 1435.0 959.0 http://corporate.webfg.com
Elementis . . . . . . . . . .158.0 4.4 159.6 51.5 Aberdeen Asset Ma .212.3 5.3 229.5 120.0 Anglo American . . .3286.0 -39.0 3437.0 2254.0 British Land Co . . . . .580.0 -5.5 586.0 418.3 International Con . . .230.5 3.7 305.0 184.2 mailto:
Ashmore Group . . . .340.0 -0.4 383.7 235.0 Cookson Group . . . . .701.0 3.0 710.0 367.4 NON LIFE INSURANCE Capital Shopping . . .396.3 -0.8 424.8 301.0 JD Wetherspoon . . . .431.9 -6.6 548.5 386.5
Johnson Matthey . .1879.0 -4.0 2100.0 1460.0 Antofagasta . . . . . . .1420.0 -17.0 1634.0 761.0
Victrex . . . . . . . . . . .1348.0 -1.0 1522.0 874.0 Berkeley Technolo . . . .4.3 0.0 9.0 2.2 DS Smith . . . . . . . . . .203.8 2.6 226.0 108.0 Admiral Group . . . . .1654.0 -26.0 1753.0 1238.0 Aquarius Platinum . .395.0 -9.0 458.0 227.1 Derwent London . . .1760.0 38.0 1766.0 1208.0 Ladbrokes . . . . . . . . .133.7 -0.7 162.7 122.7 globaltechsales@webfg.com

EUSHARES USSHARES
Price Chg High Low In association with Price Chg High Low
AIR LIQUIDE........................................93.13
ALLIANZ ............................................104.50
ALSTOM ..............................................41.59
-0.91
-0.15
0.02
99.15
108.85
50.73
73.16
75.82
30.78
Don’t miss breaking 3M ........................................................92.40
ABBOTT LABS ...................................48.50
ALCOA ................................................16.25
0.21
-0.19
-0.33
93.65
55.55
17.68
67.98
44.59
9.81

news with our new

ANHEUS-BUSCH INBEV ....................41.01 -0.49 46.33 35.06 ALTRIA GROUP ..................................25.38 0.06 26.22 19.20
ARCELORMITTAL...............................25.72 -0.45 33.68 20.26 AMAZON.COM..................................169.08 -2.59 191.60 105.80
AXA......................................................14.85 -0.17 17.60 10.88 AMERICAN EXPRESS........................43.71 -0.01 49.19 37.13
BANCO SANTANDER...........................8.24 -0.10 10.57 7.00 AMGEN INC.........................................51.74 -0.58 61.26 50.32

10:30 AM EMAIL
BASF SE..............................................61.26 0.66 62.00 39.94 APPLE ...............................................355.36 -4.64 364.90 199.25
BAYER .................................................56.40 -0.23 59.17 43.27 AT&T....................................................27.90 -0.02 30.10 23.78
BBVA......................................................8.38 -0.12 10.95 6.87 BANK OF AMERICA ...........................14.03 -0.09 19.86 10.91
BMW ....................................................57.74 -0.04 65.49 31.35 BERKSHIRE HATAW B.......................85.04 -0.46 87.65 68.48
BNP PARIBAS.....................................52.23 -0.98 59.93 40.81 BOEING CO.........................................70.88 -0.92 76.00 59.48
CARREFOUR ......................................32.26
CREDIT AGRICOLE ............................11.78
0.00
-0.21
41.28
13.78
30.85
7.87 Each day we’ll cover the morning’s breaking news, BRISTOL MYERS SQUI......................26.31
CATERPILLAR..................................102.13
-0.12
-0.91
28.00
105.86
22.24
54.89
CRH PLC .............................................15.85 -0.06 22.00 11.51 CHEVRON .........................................103.01 -0.74 104.99 66.83
DAIMLER .............................................48.60 0.36 59.09 31.57 give you current market analysis and CISCO SYSTEMS................................18.20 -0.20 27.74 18.03
DANONE..............................................44.52 -0.36 48.50 39.35 COCA-COLA .......................................65.22 0.01 65.88 49.47
DEUTSCHE BANK ..............................44.54 -0.35 55.25 35.93 the most up-to-date financial headlines. COLGATE PALMOLIVE ......................77.54 0.04 86.15 73.12
DEUTSCHE BOERSE .........................55.62 -0.13 62.48 46.33 COMCAST CLASS A ..........................25.42 -0.13 25.91 16.30
DEUTSCHE TELEKOM .........................9.63 -0.08 10.64 8.51 CONOCOPHILLIPS.............................79.20 -0.78 81.00 48.06
E.ON.....................................................23.18 -0.02 28.93 20.86 DU PONT(EI) DE NMR........................53.26 -0.61 56.19 33.66
ENEL......................................................4.21
ENI .......................................................17.65
-0.01
0.04
4.36
18.66
3.42
14.30
Sign up now to ensure you EMC CORP..........................................26.79
EXXON MOBIL....................................84.72
-0.53
-0.36
27.47
88.23
17.10
55.94
FRANCE TELECOM............................15.54
GDF SUEZ ...........................................27.57
-0.17
-0.36
17.92
30.05
14.01
22.64
receive our free email. GENERAL ELECTRIC.........................20.38
GOLDMAN SACHS GRP ..................159.11
0.01
-1.89
21.65
186.41
13.75
129.50
GENERALI ASS...................................16.09 -0.09 18.25 13.31 GOOGLE A........................................591.66 -8.96 642.96 433.63

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IBERDROLA ..........................................5.97 -0.02 6.50 4.38 HEWLETT PACKARD.........................41.98 -0.63 54.75 37.32
ING GROEP CVA...................................8.85 -0.03 9.32 5.34 Visit:
HOME DEPOT.....................................36.87 -0.35 39.38 26.62
INTESA SANPAOLO .............................2.35 -0.04 2.99 1.88 IBM.....................................................159.93 -1.90 166.25 116.00
KON.PHILIPS ELECTR .......................23.67 -0.19 27.01 20.58 INTEL CORP .......................................21.21 -0.35 24.37 17.60
L'OREAL..............................................81.84 -0.84 90.00 70.90 J.P.MORGAN CHASE .........................45.19 -0.33 48.36 35.16
LVMH..................................................112.95 1.40 129.05 78.26 WORLD INDICES JOHNSON & JOHNSON.....................60.40 -0.66 66.20 56.86
MUNICH RE .......................................118.00 -1.20 126.00 98.38 KRAFT FOODS A................................31.33 -0.25 32.67 27.49
Price Chg %chg Price Chg %chg Price Chg %chg Price Chg %chg
NOKIA....................................................6.00 -0.06 11.82 6.00 MC DONALD'S CORP ........................76.29 0.26 80.94 63.25
FTSE 100 . . . . . . . . . . . . . . 5973.78 -16.61 -0.28 S&P 500 . . . . . . . . . . . . . . . 1310.13 -11.02 -0.83 CAC 40 . . . . . . . . . . . . . . . . 3990.41 -29.80 -0.74 BOVESPA SAO PAOLO . . 68012.10 -133.43 -0.20
REPSOL YPF.......................................24.10 0.08 24.74 15.31 FTSE 250 INDEX. . . . . . . . 11747.87 24.86 0.21 NASDAQ COMPOSITE . . . 2745.63 -39.04 -1.40 SHANGHAI SE INDEX . . . . 2996.21 53.91 1.83 ISEQ OVERALL INDEX . . . 2925.95 5.77 0.20 MERCK AND CO. NEW ......................32.83 -0.23 39.04 30.70
RWE .....................................................47.62 -0.19 68.34 47.54 FTSE UK ALL SHARE . . . . 3102.82 -6.44 -0.21 FTSEUROFIRST 300 . . . . . 1143.86 -4.67 -0.41 HANG SENG. . . . . . . . . . . 23313.19 -95.67 -0.41 STI . . . . . . . . . . . . . . . . . . . . 3066.52 5.21 0.17 MICROSOFT........................................25.72 -0.23 31.58 22.73
SAINT-GOBAIN ...................................41.89 -0.48 44.85 27.81 FTSE AIM ALL SH . . . . . . . . 934.77 -3.45 -0.37 NIKKEI 225 AVERAGE . . . 10505.02 -188.64 -1.76 S&P/ASX 20 INDEX . . . . . . 2870.30 0.00 0.00 IGBM . . . . . . . . . . . . . . . . . . 1072.78 -1.45 -0.13 OCCID. PETROLEUM.......................103.53 0.38 107.56 72.13
SANOFI-AVENTIS ...............................50.48 -0.62 57.45 44.01 DOW JONES INDUS 30 . . 12090.03 -79.85 -0.66 DAX 30 PERFORMANCE. . 7161.93 -16.97 -0.24 ASX ALL ORDINARIES . . . 4895.90 0.00 0.00 SWISS MARKET INDEX. . . 6495.52 -35.02 -0.54 ORACLE CORP...................................32.10 -0.67 33.71 21.24
SAP ......................................................43.77 -0.29 45.05 33.20 PEPSICO .............................................63.47 0.07 68.11 60.32
SCHNEIDER ELECTRIC ...................118.10
SIEMENS .............................................94.59
-1.65
-0.81
123.30
98.92
73.95
66.04
COMMODITIES CREDIT & RATES PFIZER ................................................19.61
PHILIP MORRIS INTL .........................63.64
-0.05
0.14
19.90
64.42
14.00
2.00
SOCIETE GENERALE.........................46.55 -0.97 52.70 29.71 LON GD ONCE FIX AM...........1437.00 19.00 TIN CASH.............................31900.00 300.00 BoE IR Overnight ............................0.500 0.00 Euro Base Rate ...............................1.000 0.00 PROCTER AND GAMBLE ..................61.71 -0.32 66.95 39.37
TELECOM ITALIA..................................1.12 -0.01 1.16 0.88 SILVER LDN FIX AM ..................36.16 0.97 ZINC CASH ............................2486.50 14.50 BoE IR 7 days .................................0.500 0.00 Finance house base rate ................1.000 0.00 QUALCOMM INC ................................57.58 -0.57 59.84 31.63
TELEFONICA ......................................18.09 0.05 19.69 14.67 MAPLE LEAF 1 OZ ....................66.00 -0.50 BoE IR 1 month ..............................0.500 0.00 US Fed funds...................................0.250 0.00 SCHLUMBERGER ..............................90.25 -1.15 95.64 51.67
BRENT SPOT INDEX ................115.80 0.59 BoE IR 3 months ............................0.500 0.00 US long bond yield .........................4.020 0.00
TOTAL..................................................43.70 -0.26 44.63 35.66 LON PLATINUM AM................1838.00 7.00 TRAVELERS CIES ..............................58.96 -0.22 61.15 47.69
SOYA .....................................1407.75 0.00 BoE IR 6 months ............................0.500 0.00 European repo rate .........................0.773 0.40
UNIBAIL-RODAMCO SE...................147.75 -0.40 155.95 105.19 LON PALLADIUM AM ...............814.00 3.00 UNITED TECHNOLOGIE ....................82.28 -0.58 85.46 62.88
COCOA ..................................3697.00 0.00 LIBOR Euro - overnight ..................0.453 0.10 Euro Euribor ....................................0.872 0.02
UNICREDIT............................................1.78 -0.03 2.30 1.46 ALUMINIUM CASH .................2587.00 9.00 LIBOR Euro - 12 months ................1.852 0.02 The vix index ...................................21.55 2.49 VERIZON COMMS ..............................36.01 -0.07 37.70 24.77
UNILEVER CVA...................................21.72 0.00 24.11 20.68 COPPER CASH ......................9970.00 81.00 COFFEE...................................272.80 0.00 WAL-MART STORES..........................52.02 -0.05 57.90 47.77
LIBOR USD - overnight...................0.220 0.00 The baltic dry index ........................1.346 0.02
VINCI....................................................43.65 0.08 44.98 33.01 LEAD CASH ...........................2670.00 59.00 KRUG.....................................1482.70 -1.00 LIBOR USD - 12 months .................0.786 0.00 Markit iBoxx...................................212.56 1.07 WALT DISNEY CO ..............................43.02 -0.53 44.34 30.72
VIVENDI ...............................................19.90 0.02 22.07 16.18 NICKEL CASH ......................28925.00 75.00 WHEAT ....................................197.50 -1.70 Halifax mortgage rate .....................3.500 0.00 Markit iTraxx ....................................98.98 -0.08 WELLS FARGO & CO.........................31.72 -0.19 34.25 23.02
 Lifestyle
PEUGEOT GOES 27
ELECTRIC
IN TOMORROW’S
MOTORING SECTION

Episode four:
pass the
The sweet smell of success
parcel time Timothy Barber visits straightforward Ormonde Woman and
Ormonde Man.
the English perfumer They’re fresher, clearer, longer-lasting
and more complex than what you’ll find
in Boots, and unlike some of Pilkington’s
offering an innovative rivals in the world of exclusive perfumery
– smart kitchen company Clive Christian’s
form of consultation scents go for anything between a few hun-
dred pounds and several thousand –
they’re competitively priced.

A
MONG the unexpected things one It’s not just in her olfactory concoctions
discovers at Ormonde Jayne, the that Pilkington is showing considerable
swish private perfumery with out- innovation, though. Her biggest online sell-
lets in New Bond Street and Sloane er – and online sales account for around
Square (plus a Harrods concession), two half of revenue – is a beautifully-packaged
stand out: men make up the greater num- set of all the perfumes in tiny glass vials.
ber of clients, and hemlock (the poison Alternatively, get your scent in four black,
that did for Socrates) is an excellent per- pen-sized travel atomisers, a godsend for
fume ingredient. As is whale vomit. those on the move.
Actually, ambergris – the grey mulch The latest innovation, at the beautiful
CITY DAD produced in a sperm whale’s intestines –
has long been used as a fixative in per-
new Sloane Square shop, is a set-up by
which Pilkington can construct
fumes. These days, because of its relative your “perfume portrait”. In a
difficulty in harvesting and the produc- one-on-one consultation,
tion of synthetics that recreate its quali- Pilkington takes you through

I
PRESS play. “Old MacDonald had a
farm, E-I-E-I-O.” The parcel wends its
way in a clockwise direction. Noel.
Emma. Billy. Maria. Me…
This morning I was at Heathrow, waiting
for a flight and buying shirts in case I had
to be away for a couple of days. I certainly
couldn’t have left the house with overnight
paraphernalia. Hormones a-popping, Emma
would have brought my career, perhaps my
life, to a premature and ugly end.
“Dad. Dad! That’s cheating.”
I realise I’ve been holding onto the parcel
for even longer than Noel and Billy.
Apologetic, I pass the parcel to Noel.
Endeavouring to let him go at the first
layer, I reach for the iPod but accidentally
hit skip instead of pause. Noel reluctantly
passes the parcel to Emma as “an oink oink
here and oink oink there” is seamlessly
replaced by Elvis confessing, “We’re caught
ties, it’s not used very much. However,
“synthetic” – along with “mass-produced”
and, one imagines, “Old Spice” – is a dirty
word round Ormonde Jayne way.
Founder, director and all-round entre-
preneurial dynamo Linda Pilkington
maintains a close-to-nature policy that has
seen her roaming the world in search of
the kind of ingredients that you won’t
find in scents produced en masse for the
world’s fashion houses.
“If I went to a company and asked them
to make my perfumes for me, it would be
impossible,” she says.
Not that it stops imitators trying.
Pilkington has had visits by teams of scien-
tists from the big producers, trying to
uncover the secrets of her rare scents. Sure
Jane Pilkington says enough, ingredients she
her perfumery is as claims to have used first, such
popular with men as as the champaca flower from
it is with women. South East Asia, have turned
up in mass-market offerings.
“The comparison is flattering, and shows
up the superior quality of what we’re pro-
ducing,” Pilkington reasons.
Ormonde Jayne produces a range of 13
perfumes (four are for men, including two
colognes) with names like Tolu (a Peruvian
tree resin), Sampaquita (a Filipino relative
of jasmine) and Isfarkand, as well as
the various perfume ingredi-
ents – like vetiver, moss, and
indeed hemlock – to see which
float your boat.
She then makes a recom-
mendation based on the
findings – for those unused
to buying scents (and those
who are, for that matter), it’s an enjoy-
able education in aromatics, and a good
way to pinpoint something if you’re as
indecisive as I am.
“Our customers like things that are
artisan and bespoke,” Pilkington says.
“This is us giving people that sense of per-
sonal service, in a way that they find fas-
cinating.”
www.ormondejayne.com

iPad 2 moves the tablet goalposts out of sight

in a trap, I can’t walk out.”
I press pause and fiddle with the iPod,
disengaging the shuffle function. Emma
strips away a layer of last week’s Sunday
supplement to reveal a superhero tooth-
brush. “Cool,” says Billy. “Oh, mum, I want-
ed that,” says Noel. Emma looks daggers at
me. If only she knew the full story.
The music recommences. “Oranges and
lemons say the bells of St. Clement's.”
Feeling sick to the pit of my stomach,
with my flight boarding and with Emma’s
“Come home early on the day” echoing, I
realised I had three possible phone calls to
make; the client’s CFO, Sandy and home.
The order and outcomes were crucial. Life-
defining.
“When I grow rich say the bells of
Shoreditch.”
O the iPad 2 is finally here,
S unveiled by Steve Jobs
who, if you believe some of
the more hyperbolic
reports, may have risen from the
dead to show it off in San
Francisco last week.
Geeks flocked to BBC studios
for the live link-up to the event; so
many geeks that there was
nowhere for them to sit. They
spewed into the aisles, glazed
expressions fixed on the giant
polyurethane, which, we’re
reliably informed, is the same
material they use to make
spacesuits. SPACESUITS.
Presumably astronauts can now
check their Twitter feed while GEEK
carrying out maintenence work on
the outside of their spacecraft.)
SPEAK
No rivals had caught up with
the first generation iPad and now
Apple has shifted the goalposts
@steve_dinneen
even further over the horizon.
But having the best product in

LOSING YOUR HAIR?

“Herr Dr. Ringel, it’s David Cashman. I’m
about to board a plane at Heathrow but I
just wanted to talk to you first. I have a
son. Noel. He’s six today. And I really need
to be at home tonight.”
“Here comes a chopper to chop off your
head.” Pause.
Noel squeals with delight and tears at
the parcel. A metal model Spitfire emerges.
“Wow dad! Neeeeoow. Takatakatakataka.”
Noel strafes Billy. Billy takes flight, chased
by Noel.
As the dogfight ensues, Emma and I
catch one another’s eye. She smiles and
allows her hand to flutter above her belly. I
realise that Maria is watching us.
“Hey, come on boys. Boys!” I say, dis-
tracting Maria.
Later, as Maria gives Noel and Billy their
dinner, Emma asks, “Aren’t you glad you
made it home early this evening? I am.
Hope it wasn’t tricky.”
screen, awaiting the appearance
of their messiah. Almost everyone
had a Mac perched on their knees,
raising the question of why Apple
even bothers to hold these events
when they are so obviously
preaching to the converted.
“It’s Just. So... Cool, ” Jobs
drooled as the tablet flashed up
behind him. People whooped. Jobs
shook his head in apparent disbe-
lief at what he’d created, wide
eyed, like an old man who had just
discovered a dirty picture of his
first girlfriend.
The new iPad is thin, sleek,
impossibly curvy – it’s the unob-
tainable supermodel of the gadget
world. If it came with a set of
plug-in genitalia, human procre-
ation would cease overnight,
replaced by a dull, obsessive digi-
the market isn’t enough. Like a
spoilt only-child the iPad seems to
crave impossible levels of praise.
In a promotional video, one
man says the it will “change the
way doctors practice medicine”.
Another claims it can improve
childrens' grades by “50 or 60 per
cent”. If it had lasted a few min-
utes longer the generically hand-
some people would probably have
told us the iPad has build an
underwater city to rival Atlantis.
With Jobs likely to hand over
the chief executive role to Tim
Cook soon and design maestro
Jonny Ive hankering for a move
back to the UK, this could be one
of the last launches by the dream-
team behind every product from
the iMac to the iPod.
Despite the occasional bout of
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“No, no” I insist. “I wouldn’t have missed tal onanism. It even comes with a
it for the world.” bendy magnetic cover that wipes
the screen clean for you. (The
l Continued next week. “smart cover” is made from
IT CAN BE RESTORED!
verbal diarrhoea the part of the
Apple marketing department, the
iPad 2 would make a fitting swan-
song.
 28 Lifestyle
Old school
glam, new
designers
Small salon shows are being
embraced by a new breed of
designer, says Lucie Greene
T A.
HE doors close at the E Tautz men’s
fashion show during London Fashion
Week, and the hustle and bustle of
outdoor crowds immediately fades.
There’s no bank of spotlights in the Royal
Opera House’s opulent room, only a small
group of photographers, no standing
crowd of students and hangers on, just a
few fashion writers and buyers. Pounding
music – favoured at most fashion shows –
is replaced by a piano playing classical
sonatas as a series of models sporting
refined men’s wear make their way up the
isle, personally introduced by the label’s
designer – last year’s menswear designer
of the year – Patrick Grant.
Welcome to the new, or should we say
old, style of fashion show. E Tautz is just
one of a growing clutch of labels
shunning big production runway extrava-
ganzas in favour of old-fashioned,
intimate salon presentations.
“It’s reminiscent of the Christian Dior
and Yves Saint Laurent couture salon
shows in the 1960s,” says London-based
designer Emilia Wickstead. New Zealand--
born Wickstead, a Vogue magazine
favourite, has hosted regular small
fashion salons in her Chelsea atelier since
launching three years ago. This year, to
mark joining the London Fashion Week
lineup for the first time, she went
grander, taking over a room at London’s
tony Ritz Hotel.
“It was still very much salon style,
though. This kind of thing existed once
upon a time. I wanted to show the
work in a way that would make the
client feel special. Fashion shows
today are all about the press and the
buyers, but mine are focussed on the
customers. I want them to see the col-
lection up close and feel a part of
everything.”
OLD-WORLD APPROACH
Wickstead isn’t the only one taking
an old-world approach. Hardy Amies,
the historic London men's tailoring
house, unveiled its new autumn collec-
tion at fashion week with a salon show
at its Savile Row headquarters,
showcasing a series of 1920s and 1930s
sharp tailored suits set to remixed jazz
FASHION NEWS | BY LUCIE GREENE
Art Deco-inspired decor at Harrods’ Shoe Salon
CITYA.M. 8 MARCH 2011
Q&A
Clare Rous & Kara Iland
FOUNDERS OF ROUS ILAND MEMBERS’ BOUTIQUE,
WWW.ROUSILAND.COM
HOW TO GET
DRESSED: SPRING
WARDROBE FIXES
Q.
The cold is not letting up but I
want to start planning my
spring wardrobe. What are the
essential things I should focus on to
update my look right now? Any tips on
how I can look like a star?
The 70s is having a real renais-
sance and judging from the col-
lections on the catwalks right
now that trend will be around for a
while. You can dive straight into this
glamorous look with high waisted flared
trousers or jeans. Wear these right away
with a silk blouse and a chunky platform
boot. When the weather picks up you’ll
be able to transform them with a heeled
sandal and t-shirt.
As an evening look, the one-shoul-
dered dress is a modern nod to a 70s
throw back. For a warmer version try a
long sleeved one shouldered top with
trousers. Layer with a necklace to break
up the neckline. It’s a chic way to flash
some skin whilst remaining fairly covered
up.
Clockwise from Since Natalie Portman’s twirls on the
left: models at big screen, there is a real mood for some-
Emilia Wickstead, thing romantically graceful. Take inspira-
Hardy Amies and tion from the world of ballet and keep
E Tautz London your flesh covered with fine gossamer
Fashion Week and sheer layers in nude tones, leotards
shows. and fitted tops. The bodysuit is also hav-
ing a moment but if that is one pas de
bourrée too ballerina for you, tap into the
general spring trend
music (with guests sipping cham- are] great people in the audience and great for sport lux which
pagne – how civilised!) people on the runway.” is comfortable
Tom Ford and Victoria Victoria Beckham, too, has won over and chic – try
Beckham are the most prolific to her fashion critics with an old-school neoprene fabrics
join the Salon frey. Ford salon format, explaining each look, its which are both
unveiled his first, much-antici- cut, and fabric to a select audience. warm and tick
pated women’s wear collection that graceful-
with a small presentation in DETAILS AND FABRICS ly athletic
New York in September. Here, It was Beckham’s show, in fact, that box.
photography was banned. Only inspired Grant to tap the salon vibe.
buyers, private clients and “I loved the way she talked you through
monthly magazine press were the clothes,” he says. “It feels really grown-
invited (bloggers and tweeters up. I think the salon style is very suited to
were kept well away.) men’s clothing. Men’s isn't so much about
Meanwhile, Ford introduced trends, it's about details and fabrics. You
the collection personally. can provide a list of details but no-one
“I don’t want to design col- reads them. This way men can see the
lections for newspaper clothing up close and you can really tell
reviews,” said Ford at the time, the story of the collection.”
in an interview with Women’s He continues: “Men’s pieces once
Wear Daily. bought are kept in their wardrobe for
“I want to concentrate on real decades – they’re a real investment, so this
women and the real customer. I want to makes the experience of buying them
have an old, glamorous fashion show much more emotive and engaging. It cre-
where people see the clothes and [there ates a sense of romance.”
LITERARY CHIC The Dylan Jones, that’s what, the new Christian Louboutin and Brian Atwood
Nothing says true luxury stationary better “ultimate” man bag created with in an opulent modern Art Deco setting.
than a personalised, leather-bound note- designer Anya Hindmarch. The bag is www.Harrods.com
book, which is why Liberty’s part of Hindmarch’s new bespoke
customisation service, part of its new men’s range, is made with butter SWINGING SIXTIES
swish “paperie” department, is so excit- leather, and comes with a pocket for 1960s styles will be major trend for
ing. For the price of a leather Liberty of every conceivable gentlemanly need. autumn, if the recent catwalks are any-
London notebook and £5 per letter, fans www.anyahindmarch.com thing to go by. The red carpet was also
can have gold leaf initials stamped in as packed with ‘60s retro updos at last
little as two hours.www.liberty.co.uk SHOE HEAVEN month’s Oscars (see: Reese Witherspoon,
Not to be outdone by Selfridges, Harrods Sharon Stone, and Kelly Osbourne.) Next,
MAN BAG has also just launched new footwear 1960s iconic label Paco Rabanne is set for
Fashion mag editors are quick to critique mecca, the Shoe Salon, selling a host of ‘The Dylan Jones’ man relaunch with accessories by Judy Blame
designers, but what happens when they designer and bespoke styles, alongside bag, from £1,095, by and women’s wear under new creative
put their money where their mouth is? exclusive designs by Giuseppe Zanotti, Anya Hindmarch director Manish Arora. Yeah baby!
CITYA.M. 8 MARCH 2011 Lifestyle | TV& Games 29

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News 6pm Eggheads: 6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.30pm BBC London News 6.30pm Royal Upstairs 6.30pm ITV News 6.30pm Hollyoaks 6.25pm OK! TV
7pm The One Show Downstairs: Queen Victoria’s 7pm Emmerdale: Jimmy 7pm Channel 4 News 7pm 5 News at 7
7.30pm EastEnders; BBC News visit to Shugborough invites Nicola on a date. 7.55pm 4thought.tv 7.30pm Extraordinary Dogs; 5
8pm Holby City Hall at the age of 13. 7.30pm Grimefighters: 8pm Gok’s Clothes Roadshow News Update
9pm Silk 7pm Wonders of the Universe: 8pm Lion Country: 9pm Heston’s Mission 8pm Stansted: The Inside
10pm BBC News Professor Brian Cox explores A huge fire threatens Impossible Story: A private jet undergoes a
10.25pm Regional News the development of mankind Antelope Park in Zimbabwe. 10pm Shameless: safety inspection; 5 News at 9
10.35pm Neighbourhood and the universe. 9pm CHOICE Caroline Quentin: 11.05pm CHOICE The Big C 9pm CSI: Crime Scene
Watched 8pm The Hairy Bikers: Mums A Passage Through India 11.45pm Facejacker 12.15am UK & Investigation
11.20pm Girls Behind Know Best: Recipes inspired by 10pm ITV News at Ten Ireland Poker Tour 1.15am FIS 10pm CSI: Miami HORIZON: PREDATORS IN YOUR …
Bars; Weatherview international cuisine. 10.30pm London News Freestyle World Ski Championships
10.55pm CSI: NY BBC2, 9PM
9pm CHOICE Horizon 1.40am Freesports on 4 2.10am
12.25am Sign Zone: See Hear 10.35pm FILM The Big Tease: 11.55pm CSI: Crime Scene A report on projects in which scientists
10pm How TV Ruined Your Life The Grid 2.35am KOTV Boxing
12.55am Sign Zone: Comedy, starring Craig 3.05am Powerboating 3.35am Investigation are releasing predators close to where
10.30pm Newsnight: Weather Ferguson. 1999. people live, and the problems that the
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QUICK CROSSWORD
    

SUDOKU KAKURO
35 15 13 11 13 6 26 21
11 27

19 10
Place the numbers from 1 to 9 in each empty cell so that each 32 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 34 8
16
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 9 17 16
 
above or to the left of it. 29 15
You can only use the digits 1-9 8 21     
   and you must not use the
12
24  
same digit twice in a block. 17 32 16 27
   The same digit may occur 39 14  
30
   more than once in a row or
column, but it must be in a
3
22
9
10
15

23 33
   separate block.
17
25 14
    24 12
 

   ACROSS DOWN
1 Bringing death (5) 1 Signboard, for
  
   WORDWHEEL T B
4 Adjust finely (5)
7 Amazing or
example, bearing
shopkeeper’s name (6)
2 Cash register (4)
Using only the letters in the Wordwheel, you have wonderful
   ten minutes to find as many words as possible,
W T occurrence (7) 3 Citrus fruit (5)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters I 8 Stringed
instrument (5)
5 Lessen the strength of (6)
6 Verbally report or
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
A H 9 Epithet (4) maintain (6)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
I E 11 Prayer ending
word (4)
10 Scottish resort and
fishing port (3)
QUICK CROSSWORD 9 5 1 4 4 2 14 Christmas (4) 12 Landlocked African
T A M E D M I N I M
6 3 2 5 9 1 8 4 7 SUDOKU          16 EC monetary unit (4)
republic (6)
4 9 6 8 7 3 8         
A O W E E E 13 Snuggle (6)
S O N E N T R E A T 1 2 2 7 8 7 9
         18 Dutch cheese
6 1 2 4 3 2 1 5
T G L A R
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E N R O L L I S L E 9 8 2 1
        
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L I L A C
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D E A L T
6 2 1
7 1 5
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WORDWHEEL         
20 Diplomatic (7) 17 Looked at with amorous
intentions (5)
E R E N A          21 Animal with
V A G R A N T D A N
9 7 5 9 7 8 6 The nine-letter words were two feet (5) 19 Situated at the top of (4)
E I N E A G 8 3 1 6 7 5 9 2 4         
5 9 8 9 3 5
ADSORBING and SIGNBOARD         
L U N G E R A L L Y 22 Small restaurant (5)
 30 Sport
Spurs get double fillip
Bale and Van der Vaart
both expected to be fit for
tomorrow’s visit of Milan
▲
FOOTBALL
BY FRANK DALLERES
TOTTENHAM have received a major boost
ahead of tomorrow’s huge Champions
League contest with AC Milan after man-
ager Harry Redknapp revealed both
Gareth Bale and Rafael van der Vaart are
likely to be fit to play.
Winger Bale returned from a six-week
absence with a back injury in Sunday’s 3-
3 draw at Wolves, while forward Van der
Vaart is nearing full fitness as he recov-
ers from a calf problem.
And Redknapp is planning to unleash
both of them as he looks to take the
fight to the Serie A leaders, despite hold-
ing a 1-0 advantage and a precious away
goal from the first leg in Italy.
“I think we’ve got enough to hurt
Milan at home. We’ll be positive. We will
play an attacking team. We’ll play
[Aaron] Lennon and probably Gareth
Bale and have a go,” said Redknapp.
“Peter Crouch has had a great
European campaign as well. And Van der
Vaart has a good chance for Wednesday, I
hope he will be fit.”
Van der Vaart, the club’s top scorer
with 12 goals, has formed a fruitful part-
nership with Crouch, although Jermain
Defoe finally rediscovered his scoring
touch with a brace at Wolves.
Gamble Wenger’s only hope
FOOTBALL COMMENT
TREVOR STEVEN
A
RSENE WENGER’S last-minute
selection of Robin van Persie has
suddenly given Arsenal a sliver of
hope for their trip to Barcelona,
although I’m afraid to say it will still be
the result to end all results if they get
through.
It’s hard to find grounds to believe the
Gunners will progress to the Champions
League quarter-finals, even if they do have
Haye may fight Vitali instead
BOXING
▲
BRITAIN’S WBA heavyweight champion
David Haye could still face either of the
Klitschkos this summer, according to the
brothers’ manager Bernd Boente.
After lengthy negotiations, Haye and
IBF and WBO champion Wladimir have
agreed to a fight on 25 June or 2 July.
But if injury were to rule Wladimir out
his brother, WBC champion Vitali, could
face Haye instead.
Boente added that the fight would not
necessarily occur in Germany, though he
ruled out Britain as a venue. Boente, who
added that the United States would not
Milan fear Crouch threat
AC MILAN star Robinho has identified
Peter Crouch as the chief threat to his
side’s chances of beating Tottenham and
claiming a place in the last eight of the
Champions League.
Crouch scored the winner at the San
a one-goal advantage from the first leg
back in north London.
Sure, Barcelona may be without one or
both of their regular centre-back pairing
of Gerard Pique, who is suspended, and
Carles Puyol, who trained yesterday but is
likely to be short of fitness.
But they are so good at defending from
front to back that I don’t think it will
have a major impact. Barca spend all their
home games on the front foot anyway,
and are likely to do so even more than
usual tonight as they chase the win they
need.
Arsenal suffered a 4-1 drubbing at the
hands of Lionel Messi and Barca last time
they visited Camp Nou, although I don’t
think that will affect them too much. I
think they genuinely believe they are bet-
ter than they were 11 months ago.
My worry is their firepower, or lack of
it. With Barca dominating possession,
Wenger will need to hit them on the
host the fight, stressed that the contract
signed did not specify which of the
Ukrainian siblings Haye would meet.
It has been widely assumed that Haye
will face Wladimir in a German football
stadium on either 25 June or 2 July, but
Boente said: “In the talks, David was not
rejecting Vitali any more, he was very
flexible. Knock on wood it’s not the case,
but should anything happen injury-wise
[to Wladimir], as long as it is not three
days before the fight or whatever, then
Vitali could be the opponent.”
For that option to be feasible Vitali
would first have to win his fight against
Odlanier Solis on 19 March.
CITYA.M. 8 MARCH 2011
Bale and Van der
Vaart have not start-
ed together since 22
January
Pic: PA
Siro in the first leg and former Manchester
City forward Robinho said: “They play in a
different way, focusing on physical
strength, plenty of crosses into the box –
especially because they have a very tall
player in Peter Crouch,” he said.
break, but for that you need pace in your
attack, and the absence of Theo Walcott is
a huge blow in that respect.
On top of that there are doubts
throughout the side. Cesc Fabregas will be
desperate to impress on home soil but is
only 90 per cent fit, and a more realistic
source of inspiration is probably Samir
Nasri, who has outshone his midfield
team-mate for much of the season.
I’m also concerned at Abou Diaby or
Denilson filling in for the injured Alex
Song in front of the back four. Neither
impressed me when I watched them in
the goalless draw with Sunderland on
Saturday – and Barcelona are no
Sunderland – and then there are the
defensive uncertainties that resurfaced in
the Carling Cup final.
Arsenal’s absences look likely to seri-
ously hurt them. If Fabregas and Van
Persie play they have a chance; without
them they face elimination.
SPORT | IN BRIEF
No lottery funding for Clitheroe
ATHLETICS: Helen Clitheroe’s 3,000m victo-
ry at the European Indoor Championships
will not be enough to restore her Lottery
funding. The 37-year-old was dropped from
the programme after failing to make the top
eight at the 2009 World Championships.
“The Lottery’s performance plan is based on
global performance,” said UK Athletics head
coach Charles van Commenee.
England base to be inspected
RUGBY UNION: England’s World Cup base
will be inspected this week as the New
Zealand authorities assess the scale of
earthquake damage that has placed
Christchurch’s participation in the tourna-
ment in doubt.
CITYA.M. 8 MARCH 2011
England well
equipped to
cope minus KP
Pietersen’s injury is offset by the return to the fray
of swashbuckling Morgan, writes James Goldman
W
HILE it might be stretching
the truth to suggest Kevin
Pietersen’s tournament
ending hernia injury is a
blessing in disguise, it is a measure of
England’s development as a one-day
unit that they are unlikely to be overly
handicapped by his absence.
In his pomp KP was the most
destructive batsman in the game,
whatever the format, but that domi-
nant, brash, reverse sweeping, switch-
hitting innovator is no more.
Repositioning Pietersen at the top
of the order hasn’t worked, and
although his early departure means
England will again have to shuffle
their pack, this is a side whose No3
batsmen are well used to coming to
the crease without a substantial plat-
form to build on.
Ian Bell, who has opened for the
Twenty20 side of late, is the obvious
candidate to replace Pietersen, while
Ravi Bopara has done the job on occa-
sion in the past with mixed success.
There is even the possibility of
England coming up with something a
bit left-field and permitting Graeme
Swann to have a bash in order to take
advantage of the early power-plays.
Whoever replaces Pietersen at the
top of the order, the negatives of his
absence are offset by the reintroduc-
tion of Ian Morgan. Despite their posi-
tive results against India and South
Africa, and indeed their travails
against Ireland and Holland, England
have stalled in the latter stages.
Mike Yardy’s three from 17 balls
against South Africa on Sunday was as
close to a hanging offence as you can
get in one-day cricket. You can be sure
the ice cool Morgan, England’s finish-
er, won’t be as wasteful with the strike
when he makes his bow on Friday.
HEAD-TO-HEAD
MORGAN......................................v ................................PIETERSEN
38..................................................Games..............................................21
38.................................................Innings.............................................21
9.................................................Not Outs.............................................0
1,160.................................................Runs ..............................................517
40 ................................................Average.........................................24.61
5 ......................................................50s..................................................2
3 .....................................................100s ................................................0
* All stats since 24 May 2009 when Morgan made his England ODI debut
Sport 31
Results
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email sport@cityam.com
 Sport
32
Look
who’s back
Van Persie’s shock inclusion in Arsenal squad to face
Spanish giants Barcelona gives Gunners a major boost
BARCELONA
ARSENAL
▲
FOOTBALL
BY FRANK DALLERES
ARSENAL manager Arsene Wenger
insists Robin van Persie will only
face Barcelona if he is fully fit after
springing a huge shock by naming
the striker in his squad for
tonight’s eagerly-awaited
Champions League contest.
Van Persie was not expected to
return from a knee injury until the
end of the month but was an 11th-
hour addition to the party that
flew to Catalonia yesterday and is
Old guard Lampard and Terry renew Chelsea hope
BLACKPOOL 1 tion to show for their efforts.
CHELSEA 3 with a game in hand and
▲
FOOTBALL
BY JAMES GOLDMAN
CHELSEA manager Carlo Ancelotti
insists securing a top four finish in
the Premier League remains his side’s
priority despite appearing to re-enter
the title race last night.
John Terry’s 20th minute header
allied to Frank Lampard’s second-half
brace secured an ultimately comfort-
able win against plucky Blackpool,
who were unlucky not to have more
set to feature in the last-16, second
leg match if he passes a fitness test
this morning.
Only last week Wenger declared
the Dutchman faced a minimum
three weeks out with a ligament
tear suffered in the Carling Cup
final, but he maintains he won’t
risk a further setback in order to
see off Barca and reach the quarter-
finals.
“We are 19 here in the squad.
Whether Van Persie will be includ-
ed has not been decided yet,” said
Wenger. “He has made quick
progress in the last three days. This
[yesterday] morning he was really
unlikely to travel. He wanted to
have a go. We made a test and it
was quite positive. We will see how
he responds and I will make a deci-
sion tomorrow [Tuesday] morning.
than Jason Puncheon’s late consola-
Victory moved Chelsea to
within nine points of lead-
ers Manchester United
with Ancelotti’s side
scheduled to make
a trip to Old
Trafford in May,
suddenly an
opportunity
to stage an
u n l i ke l y
defence of their crown has
arisen.
But Ancelotti is adamant
that cementing Champions
League qualification remains
his main objective.
“Now we have nine points,
PIETERSEN BLOW NOT THE END
OF THE WORLD FOR ENGLAND
RETURN OF MORGAN CAN MAKE UP
FOR THE ABSENCE OF INJURED KP: P31
We will not take a gamble in a
game of that importance.
So he will have to be fit
or not fit.”
The Spanish cham-
pions and current
league leaders are
favourites to
progress despite
Arsenal’s 2-1 first-leg
lead, and Wenger
denied he was seeking
to gain a psychological
advantage with a selection
that no-one had anticipated.
“I am very bad at mind games,”
added Wenger. “The whole truth is
what I have given you here. We’ll
see tomorrow morning. The med-
ical team will assess him and I
would like him to play. But I will
only play him if he is 100 per cent
we have to play another
game against Birmingham,
but I think it’s too far to
think we can come back to
fight for the title,” Ancelotti
said. “It is better for
us, and easier for
us, to think
game by game.
“I think our
aim at this
moment is to
stay in the
first four
places of the
t a b l e .
Obviously we are
closer to Man
United but we
don’t have to think
because it is too far,
Van Persie scored in
the first leg win
three weeks ago
Pic: PA
fit. OK, I will consider 99.5.”
Wenger refused to risk
Cesc Fabregas, who
returns tonight, in the
Carling Cup final on
28 February, despite
his captain’s plea to
play, and explained
that the nature of
the Spaniard’s injury
made his selection
more dangerous than
Van Persie’s.
“Cesc had a muscle
problem. Robin has a ligament
problem,” said Wenger, who is
without midfielder Alex Song and
winger Theo Walcott. “There is
more risk for a muscle problem. So
it is just whether he feels he is fit to
play or not.”
TREVOR STEVENS’ VERDICT: P30
we have to prepare for the next game
because it is game by game.”
Having tested Blackpool goalkeeper
Richard Kingson from range a couple
of times, Chelsea took the lead from a
corner swung out by Lampard and
powered home by Terry.
Petr Cech was then called into
action to push Puncheon’s low shot
onto the post and tip over an Ian Evatt
chip. Blackpool started the second
half on top but the wind was taken
from their sails when Lampard struck
twice in four minutes just past the
hour.
The England midfielder converted
from the spot after substitute
Salomon Kalou had been felled and
then finished coolly from eight yards
after he had been fed by the Ivorian.
Puncheon struck a deserved conso-
CITYA.M. 8 MARCH 2011
Fabregas insists
Camp Nou return
is strictly business
ARSENAL captain Cesc Fabregas
insists he has nothing to prove to his
Barcelona suitors as he prepares to
make an emotional return to the
Camp Nou this evening.
The Catalan native left Barcelona’s
fabled La Masia training academy to
join Arsenal as a fifteen-year-old in
search of first team football.
Fabregas has regularly been linked
with a move back to Barcelona, par-
ticularly last summer when the
Spanish champions launched an
aggressive, but ultimately unsuccess-
ful pursuit.
Despite the intense scrutiny he will
be under tonight, Fabregas is insists
that the only thing on his mind is
ensuring Arsenal progress to the last
eight of the Champions League.
He said: “I am not here to shut up
comments or to beat anyone specifi-
cally,” he said. “I am just here to win
for Arsenal. Sometimes I don’t under-
stand these reactions or comments
about people saying I want this or I
feel this. I want to win for Arsenal
and that’s it.
“I don’t put anything extra in my
head because I play against
Barcelona in the Camp Nou. It is a
special game for everyone because it
is a special stadium and we play
against a good team. That’s it. It's one
more game that we want to win.”
lation four minutes from time, but
that did little to dent Lampard’s
renewed title optimism.
“We have to believe. It is a long shot
and we have a lot to do but if we go
and win every game we will have a
great chance to do it, but it will be
very difficult,” he said. “If we win
every game we still have a chance but
Arsenal and United are good sides
and they have a good lead.”
TOP FIVE
TEAM PLD W D L F A PTS
Man United 29 17 9 3 63 30 60
Arsenal 28 17 6 5 57 27 57
Man City 29 15 8 6 45 25 53
Chelsea 28 15 6 7 51 24 51
Spurs 28 13 9 6 41 34 48