Issue 1,398 Wednesday 8 June 2011
BUSINESS WITH PERSONALITY
l Advisers blame each other for seizure of IPO market l
▲
EXCLUSIVE
BY DAVID HELLIER AND JULIET SAMUEL
FEUDING has broken out between all
the key players within the City of
London’s crucial fundraising business,
in a development that threatens to
devastate confidence in London’s fal-
tering flotations market. Key advisers,
investors and bookrunners are at log-
gerheads and briefing against each
other, in the worst breakdown in rela-
tions in the City in living memory.
According to numerous sources
who have spoken anonymously to City
A.M. banking consultants such as STJ
Advisors, hired sometimes secretively
by private equity groups wishing to off-
load companies on the London mar-
ket, are clashing with the bulge
bracket investment banks that are
responsible for bringing flotations to
the market.
Meanwhile, another key group of
City financiers – the buy-side firms
that invest in newly floated firms – are
continuing to warn that new shares
are being offered at too high a price.
BlackRock, traditionally one of the
big takers of new issues, issued a
scathing statement recently about the
state of the London IPO market, saying
recent events had been “frustrating”.
It argued that companies should
expect to float at a discount to their
peer group, that bookrunning syndi-
cates of investment banks have grown
too large and, crucially, that advisers
were being appointed “on indications
of valuation that are unrealistic”.
However, one banker said that the
bookrunners are caught in the middle
of an unholy row between the invest-
ing institutions, the private equity
groups that are wanting to sell out and
their advisers. These people are accus-
ing them of trying to sell stock too
cheaply.
The banker told City A.M: “People like
STJ accuse the banks of misleading
clients over valuation. They say we’re
too partisan and too close to the invest-
ment community.”
FTSE 100 ▲5,864.65 +1.49 DOW ▼12,070.81 -19.15
www.cityam.com
SPECIAL INVESTIGATION
COMPANIES
THAT FAILED
TO FLOAT
INSTITUTIONAL
INVESTORS Edwards
Skrill
BlackRock
Schroders Merlin
JO Hambro
M&G
FRICTION
Investors claim
company shares
are too expensive
The banker said that the investment now we are being trashed,” said the
banks feel they are constantly being banker. “But we are always trying to
“second guessed” by private equity get deals done.”
groups’ advisers, whose main objec- Documents seen by City A.M. show
tive is to achieve as high a valuation as that STJ, in particular, has aggressively
possible for the selling company. marketed its services as being able to
“Their goal is to have large syndi- add up to 30 per cent in valuation for a
cates so that they can take control of company wishing to float.
things. They try to make the banks In the documents, STJ accuses the
compete against each other and it is bulge bracket investment banks, who
carnage. traditionally occupy the bookrunning
“We have always brought together roles during a flotation, of talking
buyers and sellers in the market but down investor sentiment in order to
NASDAQ ▼2,701.56 -1.00 £/$ 1.64 unc
FREE
IPO ADVISERS
STJ Advisors
Lazard
Rothschild
FRICTION
STJ Advisors
accuses investment
banks of talking
down valuations
BOOKRUNNERS
Goldman Sachs
Barclays Capital
Deutsche Bank
drive down valuations. Despite nervousness about the com-
Yesterday STJ’s John St John modities market, Glencore recently
declined to comment on the charges succeeded in getting its $11bn flota-
made by STJ in the documents. tion away, but other smaller high-
Adam Young of independent adviso- growth companies such as Edwards
ry Rothschild agrees that syndicates and the payments service group Skrill
have grown in size in recent months: failed to float amid talk of a buyers’
“It’s crucial to co-ordinate and counter- strike. There are fears that unless con-
balance joint bookrunners who are ditions improve and relations between
always fiercely competitive with each the different vested interests thaw
other, but ultimately responsibility somewhat, London will lose out to
and accountability for getting deals markets such as Hong Kong.
sold well must lie with them,” he said. MORE: PAGES 2,3,& 4
£/¤ 1.12 unc ¤/$ ▲1.47 +0.01 Certified Distribution
04/04/11 - 01/05/11 is 103,899
 2 News
SPECIAL INVESTIGATION | CITY AT WAR
Why all sides need
to stop and relax
EDITOR’S LETTER
ALLISTER HEATH
IT is time for the City to get its act
together: it is in danger of ceasing to
function as a proper, efficient plat-
form for raising money for firms
seeking to go public, an untenable
situation. As our special investiga-
tion on pages 1-4 of today’s newspa-
per demonstrates, the market for
corporate floats has almost ground
to a halt, with the City breaking out
into feuding factions. Everybody is
blaming everybody else and trust
has evaporated. Financiers we have
spoken to say that the bad blood
between the warring groups is worse
than anything seen in living memo-
ry, perhaps because tensions that
could have been papered over during
the boom years have now become
unbearable in tougher economic
conditions.
Buy-side firms (the fund managers)
are angry, claiming that investment
banks are giving false hopes to firms
seeking to float and pricing their
shares too high; some advisers to pri-
vate equity firms are briefing against
investment banks, claiming that new
floats are actually being priced too
cheaply (yes, really); those seeking
funds or to float their firms are upset
at the cost of bankers and at the fail-
ure to find buyers for many floats;
and the investment banks deny that
they are operating excessively large,
cartel-like syndicates, that the mar-
ket is insufficiently competitive, that
they are too powerful or that they are
imposing fees that are too high on
firms that are floating while taking
on insufficient risk.
There have always been tensions
between these four groups of City
folk – but they have exploded as a
result of the tougher economic and
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CITYA.M. 8 JUNE 2011
market conditions and the failure of
a number of high-profile floats. As
the documents we reproduce show,
the language used by some has
become excessively heated. I don’t
believe the claims made in those
documents. I’m more sympathetic to
the argument made by fund man-
agers complaining that banking fees
are too high – but I feel that the mar-
ket is less closed to new entrants
than they seem to think and is there-
fore not fundamentally uncompeti-
tive. But insults are flying and there
is much bad blood. All of this needs
to stop.
The extent of the initial public
offering (IPO) market’s woes has
been camouflaged by the spectacu-
lar success of Glencore’s huge float,
which propelled the energy trader
straight into the FTSE 100 and show-
ered everybody involved on the sell- Carl McPhail, former chief executive of New Look Picture: Rex Edwards chief Matthew Taylor pulled his firm’s float
side with huge riches. It is the
exception that confirms the rule.
London isn’t New York any longer: TIME LINE | FAILED OR CONTROVERSIAL FLOTATIONS ➤ ➤ ➤ ➤ ➤ ➤
there is no long list of sexy compa-
nies such as Groupon preparing to
float and set to deliver immediate Company Date Expected proceeds from IPO
and massive windfalls to investors.
The “City” is a complex ecosystem New Look Budget Clothing February 2010 £650m
which many outsiders simply don’t
understand. It includes all varieties New Look Budget Clothing March 2011 £650m
of bankers, wealth managers, traders
and financiers, as well as lawyers,
accountants, marketers, business
Perform Group Media Rights April 2011 £146m
services professionals, corporate
executives, technology experts, other Edwards Vacuum Technology April 2011 £441m
advisers and the like. So it was
always a nonsense to talk of the City Skrill Online Payments April 2011 £179m
as if it were monolithic.
But as our story today also shows,
Big banks accused of
the City’s financiers themselves are
more deeply divided than they have
been for years. In many ways, of
course, this is a good thing: buy-side
firms need to be at odds with sell-
side firms, investors need to hold
talking down values
executives to account and so on. But
what we are getting now is not the
right kind of creative, competitive
tension that is required for progress;
but instead a debilitating eruption
into useless conflict.
Unless investors trust that shares
are being offered to them at a sensi-
ble price, and that various advisers
▲
agree than they can work with each CAPITAL MARKETS back is manipulated by showing low- says it offers transparency and con-
other, the only outcome will be stale- BY DAVID HELLIER est valuations given to joint bookrun- trol throughout an IPO.
mate and a rush by investors to float ners and ignoring higher valuations “We work with the banks, not
on easier, more manageable markets STJ Advisors, the St James’s Place- generated.” against them,” STJ says, although
such as New York or Hong Kong. This based firm, is accusing the big banks In the examples used, STJ names some of the banks we spoke to dis-
chaos is especially unhelpful to that run the flotation process of Deutsche Bank, Barclays Capital, agree with that sentiment.
London given that its overall compet- charging high fees and of “distorting Goldman Sachs and others as STJ says that its services, which are
itiveness is already in decline as a investor feedback” in order to get bookrunners in question. largely provided to private equity
result of higher tax, increased regu- companies to lower their valuation, The banks declined to comment groups wishing to sell into a flota-
lation, necessary deleveraging, exces- according to a sales document seen when contacted by City A.M.. tion, do not add extra cost. It says that
sively high inflation and an overall by City A.M. STJ, which has just been appointed fees are largely payable for success
weak economy. The document claims that “banks alongside Lazard to assist with the and are structured out of overall syn-
This is not an issue that govern- are conflicted” in the IPO process. flotation of Bankia, a Spanish bank- dicate fees.
ments can fix. Not all problems have It argues that the banks, who offer ing group, said in the document that Some bankers who spoke to City
political solutions. What is needed a wide range of services, always have its proven techniques are designed to A.M. in the past few days agreed that
instead is a cultural shift, for expec- a motive in delivering good value optimise value. It says its role can be there can be a role for so-called IPO
tations to be readjusted to reality share issues to institutional clients either “visible” or “invisible”. advisers who perform the kind of role
and for trust to reappear. and therefore have a tendency to STJ’s main competitors in the race that STJ does.
Somebody should sit the biggest offer shares too cheaply. for IPO advisory roles includes blue- But they said that often, in the case
fund managers, private equity firms, Its strongest criticism is reserved blooded firms such as Rothschild and of STJ, there was tension between
investment banks and other advisers for the way the banks, or bookrun- Lazard. them and the banks.“They can create
in one room and try and knock ners as they are known in flotations, In it sales document, STJ says that a lot of grief and workload,” one
heads together. Perhaps this could be use the investor feedback they take its independent, specialist advice can banker said.
a task that Xavier Rolet, the London during an IPO process. ensure success in “mission critical” One source said that the likes of
Stock Exchange’s boss, may want to In an extraordinary attack over two capital markets transactions. It says Rothschild and Lazard did a lot of
take on – or if not him, another City graphically illustrated pages purport- its techniques are designed to opti- preparatory work on flotations that
grandee. But something needs to be ing to demonstrate the distortion of mise value and it states that there is was useful but that STJ most often
done, and this nonsense halted, for investor feedback, STJ argues that strong evidence of underpricing in came in at the end of a process and
the sake of London’s long-term pros- “pricing feedback is distorted by the IPOs. tinkered with issues like the distribu-
perity. systematic removal of many of the It claims to offer unique manage- tion of stock. “That’s where we find
allister.heath@cityam.com investors providing reference data.” ment of the marketing process, a skill them trying to second guess the pro-
Follow me on Twitter: @allisterheath It also says that the “pricing feed- the bookrunners also offer. It then ces.”
 CITYA.M. 8 JUNE 2011 News 3

London IPO market is close to seizure

malaise but bankers say that appetite of the UK investment com-

▲
CAPITAL MARKETS
BY DAVID HELLIER
GLENCORE recently pulled off a
$11bn flotation, London’s largest
ever, but the past few months have
otherwise been pretty desultory in
terms of new companies coming to
market.
Some blame last year’s flotation of
Ocado, the online grocer, for starting
the rot. Ocado’s share price has
recovered well from its early post-IPO
investors felt at the time that they
were sold a pup and that they have
not forgotten that in a hurry.
In the last few months, around
half of the Russian companies that
planned to raise money in London
have been forced to withdraw their
plans, as investors balked at the valu-
ations and general corporate gover-
nance issues.
But it hasn’t just been Russian
groups that have failed to whet the
munity. Solid UK groups like
Edwards, the vacuum technology
company, and online payments serv-
ice Skrill, were also forced to pull
their issues.
As Skrill chairman Bob Wigley put
it to City A.M. earlier this week: “The
US market is alive and on fire and
the London market is in effect
closed. So perhaps there are factors
other than market dynamics at
work.”

Skrill chairman Bob Wigley saw his company’s IPO shelved in April

➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤

Outcome
Pulled float due to “market conditions”
Again pulled float
Floated at 260p but plummeted immediately to under 230p on the first day
Pulled float citing poor “market conditions”
Pulled float citing poor “market conditions”
The body
Al Qae
l e a d e
Osama b
Laden w
buried
sea
Monda

London to
Copenhagen
from
£
33 .99 single
inc. taxes

We fly from Gatwick and Stansted. Price correct as at 24 May 2011 for travel between 6 June and 4 August 2011.
Variable charges for hold baggage apply and some payment methods attract a handling fee. See website for details.
 4 News
SPECIAL INVESTIGATION | CITY AT WAR
The media-shy mastermind behind
an aggressive boutique operation
CAPITAL MARKETS
▲
BY JULIET SAMUEL
STJ Advisors operates as a partner-
ship led by John St John, a capital
markets banker who has spent 25
years at various investment banks in
the capital-raising business.
He co-founded the firm, which
was originally known as Fredericks
Place Advisors, in 2008, after a career
that included stints at Nomura,
Citi/Salomon Smith Barney and
Dresdner Kleinwort Benson.
STJ focuses exclusively on capital
markets deals, in both debt and equi-
ty, and makes a point of the “objectiv-
ity of our advice”. The bank’s pitch is
that it offers “advice and services
which the integrated investment
banking model cannot provide”.
One former colleague called St
John “great to work for”, but others
have criticised STJ’s overly “interfer-
ing” way of managing book-runners.
BlackRock sparked IPO row
with explosive open letter
▲
CAPITAL MARKETS
THE ROW over banks’ IPO activities
was first ignited after BlackRock, the
world’s largest institutional investor,
sent an explosive letter to several
leading investment banks.
The devastating broadside on the
way company listings on the stock
market are handled exposed how
some banks were providing clients
with unrealistic valuations for their
companies in order to win business.
“We are concerned that companies
are appointing advisors based on indi-
cations of valuation that are unrealis-
And in one apocryphal story, the
media-shy St John was so pleased
with a bumper bonus from his work
at Dresdner Kleinwort Benson that
he had the bank’s logo emblazoned
across his swimming pool tiles.
STJ is not St John’s first independ-
ent capital markets enterprise. In
2000, he left his role in equity capital
markets (ECM) at Lehman Brothers to
become chief executive of the newly
launched EO, an online platform
that offered float services. However,
the firm went bankrupt two years
later as part of the fallout from
the dot.com crash.
In addition to his man-
aging partner role at STJ,
St John is also a director
of Ingenious Film
Partners, one of the
backers of the movie
Avatar, and is an ambas-
sador for the charity
Build Africa.
JOHN ST JOHN
tic,” the letter said.
It also criticised the structure of
fees to reflect the price achieved on
the first day of trading, as well as a
whole series of other practices.
Penned by highly-respected
BlackRock managing directors Luke
Chappell and James Macpherson, the
letter brought into the open tensions
within the City community.
It raised concerns that the number
of banks on the syndicate for an IPO
did not “appear to benefit the process
of price formation”.
BlackRock added that it is likely to
be much less constructive on IPOs
with large syndicates.
The US institutional investment
house hit out at the information
made available on companies looking
to float, criticising limited meeting
time with firms. It also said there was
a “disparity” between investors and
banks on expectations of governance.
“It is in all of our interests for
London to remain at the centre of a
thriving capital market. However,
recent developments in the IPO mar-
ket have, at times, been frustrating,”
the letter said.
INDEPENDENT ADVISER
ROTHSCHILD
ROTHSCHILD is one of the world’s
largest independent advisories on capi-
tal-raisings, having been on 111 deals
raising €185bn in equity since 2009.
Notable transactions include
Petrobras’ $70bn float in Sao Paulo
and Porsche’s €5bn rights issue.
Adam Young co-heads its equity
INDEPENDENT ADVISER
LAZARD
LAZARD prides itself on seeing
clients as “a client for life”, prioritis-
ing relationship-building over gener-
ating a constant flow of fees.
The bank has worked on some
major capital-raisings this year, such
as AIG’s $8.7bn re-listing and the
We all need to show that
London is open for business
CITY COMMENT
STUART FRASER
W
E need to take seriously any
concerns that firms find the
UK a more difficult place in
which to raise capital.
There is no doubt that other finan-
cial centres have long sought to repli-
cate London’s world leading success
CITYA.M. 8 JUNE 2011
advisory service and says that one of
the keys to an independent advisor’s
role is to manage increasingly large
syndicates effectively.
"It's about lots of little turns of the
dial, making sure that the whole thing
is done really professionally,” he says.
That includes sifting through and fil-
tering information about the market
received from book-runners.
Rothschild takes on work both in
the early planning stages of a deal and
during the execution, prioritising “a
detailed flow of information”.
$3.8bn float of HCA Holdings, and
its client list includes behemoths
such as Kraft and Virgin.
Unlike many large investment
banks, Lazard keeps origination of
deals and execution of them in one
place, so that clients have a consis-
tent relationship and contact point
with the bank.
It also pitches that it offers “inde-
pendent, trusted and unbiased
advice”, adding that “we limit our
participation in conflicting business
activities”.
and, in so doing, to capture some of
the market share.
Should they succeed in achieving
these ambitions, there are concerns
that London’s competitive advantage
may be eroded and that the percep-
tion of London as a welcoming busi-
ness environment in which to raise
capital may be diminished.
What is vital is that all of the key
stakeholders involved in this process
– especially institutional investors
and investment banks – act in such a
way so as to demonstrate to the inter-
national business community that
London remains well and truly open
for business.
Stuart Fraser is the Policy Chairman,
City of London Corporation.
 6 News
US stocks dip after Fed’s
Bernanke talks down QE3
▲
US ECONOMY
BY JULIAN HARRIS
STOCKS in the US dropped last night
after Federal Reserve chief Ben
Bernanke acknowledged a slowdown
in the economy, but offered no sug-
gestion of a third round of quantita-
tive easing (dubbed QE3).
The Dow Jones industrial average
fell 0.16 per cent to end at 12,070.81,
while the Standard & Poor’s 500 Index
slipped 0.09 per cent, to finish at
1,284.94. The Nasdaq composite index
shed 0.04 per cent, to close at 2,701.56.
Bernanke noted “slower than
expected” growth this year and “frus-
tratingly slow” progress in the labour
market, yet remained defiant over the
Fed’s controversial asset-buying pro-
grammes (QE and QE2).
“The Fed’s actions in recent years
have doubtless helped stabilise the
financial system, ease credit condi-
tions, guard against deflation, and
promote economic growth,” Bernanke
concluded. Growth “seems likely to
pick up in the second half of the
year”, the Fed expects. Yet conditions
are still bad enough “to warrant
exceptionally low” interest rates,
Bernanke stressed.
Inflation, which has reached
around 3.5 per cent in the US, is the
result of “transitory” factors beyond
the Fed’s control, Bernanke insisted.
Commodity prices will ease as glob-
al supply picks up, with oil prices
unlikely to spike again, he said.
Barclays boss Bob Diamond will today face the influential Treasury select committee
MPs raise concerns over
new panel’s independence
REGULATION
▲
BY RICHARD PARTINGTON
CONCERNS have been raised over the
independence of the new body being
set up to spot potential crises in the
British economy by an influential
committee of MPs.
The Treasury select committee said
it was “not so clear” whether Alistair
Clark, a former Bank of England
employee, would be sufficiently inde-
pendent to sit on the Financial Policy
CITYA.M. 8 JUNE 2011
Committee (FPC) – the advisory panel
being drawn up as part of sweeping
regulatory reforms.
The committee, which will today
grill Barclays boss Bob Diamond and
the chiefs of three other large UK
banks, wants an additional independ-
ent member to join the FPC as a
result.
The development will be a fresh
blow to the reforms, after former CBI
chief Sir Richard Lambert had already
turned down a role on the panel.
CITYA.M. 8 JUNE 2011 News 7

HMV secures
HMV DEBT
REFINANCING Q&A
Q. WHAT DOES THIS HMV

bank loan but A.

REFINANCING INVOLVE?
HMV’s lenders RBS and Lloyds
have agreed to supply two term
loans of £70m and £90m that
mature in September 2013, and a

cedes equity
£60m revolving credit facility. The
deal refinances its previous £240m
debt facility with £220m of fresh
HMV has handed a five per cent stake in the firm to its lenders debt. The banks will charge HMV
interest of four per cent over the
ANALYST VIEWS: HOW GOOD A DEAL IS THIS London Interbank Offered Rate, cur-
rently about 0.8 per cent. They will

RETAIL exit fee was “a clear incentive to pay REFINANCING FOR HMV? Interviews by Alison Lock
also levy an exit fee on full repay-
ment of the £90m loan, and bar HMV
▲

BY ALISON LOCK down the debt quickly” but warned from paying any dividends until it is
that “short of an equity fundraising, repaid. Finally, HMV has agreed to
STRUGGLING music retailer HMV we struggle to see HMV generating NICK BUBB | ARDEN PARTNERS give them share warrants that can be

agreed to give its banks a five per cent
equity stake in return for a costly last-
ditch loan refinancing yesterday.
“
sufficient cash flows to repay the converted into equity equivalent to
debt in the required timescale”. five per cent of HMV’s total share
HMV had a £79m free cash outflow This seems to us to be a triumph of hope over experience. We expect the capital any time after 30 June 2012.
higher interest charge to wipe out any earnings before interest and tax this year

The refinancing deal struck with
lenders RBS and Lloyds gives HMV
£220m in two loans and a revolving
credit facility and wins it breathing
space as it fights for survival.
But the package of three loans
cash flow in the four months to
October 2010. Like for like sales fell 15
per cent in the four months to the
end of April and it said it was contin-
uing to trade in line with this.
Arden analyst Nick Bubb said the
”
and we note from the statement that current trading still remains very poor. HMV
is now trading on nearly 4.5 times EBITDA and that is much too high. Q. ARE THE FEES REASONABLE?
KATE CALVERT | SEYMOUR PIERCE A. The interest rate is reasonable
but the exit fee has a sting in its
tail. The banks will charge HMV an

comes with high fees including an
exit fee upon repayment, and bars
HMV from paying a dividend while a
“
interest rate charge alone would wipe exit fee of five per cent, or £4.5m, if it
out any earnings for HMV this year. repays before 1 April 2012. That rises
The banks clearly have the company over a barrel, which is not surpris- to eight per cent after April 2012 and
ing given that current trading remains in-line with the 17 weeks to April 30. We

£90m term loan is outstanding.
“The rate at which the exit fee
accrues will start at an amount equal
to five per cent per annum and will
ratchet upwards on April 1 2012 to
eight per cent per annum and again
”
ANALYSIS l HMV Group PLC to 14 per cent – or £12.6m – if the
are maintaining our Sell recommendation as we believe that the business is a loan is not repaid by 1 January 2013.
18 p value trap and the Waterstone’s deal is expected to be dilutive to earnings.
10.50
7 June
JOHN STEVENSON | PEEL HUNT Q. HOW SIGNIFICANT ARE THE
WARRANTS?
A. Warrants are often a first step by

“
12
on January 1 2013 to 14 per cent per banks towards taking control of
annum,” HMV said in a statement. a company. The backers of retailer
Analysts warned that HMV’s falling We fear this is an interim pause before the next step down. Short of an Jessops also exercised warrants when
8 equity fundraising, we struggle to see HMV generating sufficient cash flows to

”
sales and weak cash flow may cause it the companies were unable to repay
to struggle to repay the debt. Peel repay the debt in the required timescale. Nonetheless, this removes a key distrac- debt. While five per cent is not large,
Hunt analyst John Stevenson said the 7 Apr 25 Mar 14 Apr 10 May 31 May tion for the business allowing management to focus on restructuring. there is potential for it to grow.

Lloyds faces branches headache WHAT THE OTHER PAPERS SAY THIS MORNING

BANKING quo could go some way to satisfying planned, it has not ruled out stepping EVERCORE SET TO ENHANCE ITS ROLE BA AGREES $89M CLAIM OVER AN
▲

BY JULIET SAMUEL
LLOYDS could be pressured into sell-
ing the 620 branches it has on the
block to a bank that already has a pres-
ence on the High Street, City A.M.
understands.
A Treasury source said that the
bank could be asked to sign a deal
with an existing “challenger bank”
that has enough branches to rival the
industry’s incumbents, who are for-
bidden from buying the branches.
Narrowing the field of buyers to a
bank that would threaten the status
the Independent Commission on
Banking (ICB), which has said that
Lloyds must sell “substantially” more
branches than currently planned.
But it could make it difficult for
potential bidders like Spain’s BBVA,
Virgin Money and NBNK Investments
to buy the branches alone because
they might face rivals that already
have a high-street presence, such as
National Australia Bank or a number
of building societies.
Although the Treasury says it is
“reasonable” for Lloyds to proceed
with the the sale of 620 branches as
in at a later stage to make it sell more.
Lloyds is already obligated to make
sure that the branches, which it has
to sell under EU competition law,
come “ready to use”, with a manage-
ment and IT system in place.
The bank is currently finalising the
details of an information memoran-
dum that will kick off the sale
process when it is sent to potential
bidders in the next couple of weeks.
Prospective buyers have told City
A.M. that once the memorandum is
received, it could become difficult and
costly to change the terms of the deal.
IN EUROPE WITH £86M LEXICON BUY
Evercore Partners, the US investment
bank, is set to bolster its position in
Europe with a deal to buy Lexicon
Partners, the London-based advisory
firm co-founded by Andrew Sibbald,
for about £86m.
UBS IN PAY PLEDGE TO TRY AND STEM
DEFECTIONS
UBS executives have reassured senior
bankers that it will raise pay to
attract and retain top staff after suf-
fering a spate of defections from its
US investment bank.
AIRLINE CARGO CARTEL
British Airways has agreed to pay
damages to cargo customers in the
United States after admitting that it
had been part of a price-fixing cartel.
SYKES IN RETREAT AS OLIGARCHS
STRIKE FEAR INTO COPPER GIANT
Sir Richard Sykes offered to step
down from the board of Eurasian
Natural Resources last week after a
boardroom dispute led to fears that
the company’s Kazakh shareholders
would try to oust its independent
directors.
 8 News
Resolution to
return £500m
to investors
▲
INSURANCE
BY ALISON LOCK
LIFE insurance asset buyer Resolution
yesterday pledged to return £500m
cash to shareholders over the next
year, starting with £250m of share
buybacks that kick off today.
Resolution, which is restructuring
life insurance books bought from
Friends Provident, Axa and Bupa, will
return the second £250m to share-
holders in the first half of 2012 after
making £235m in capital synergies
this year.
In a statement its board also ruled
out further overseas acquisitions,
which it had suggested at previous
meetings but found shareholders
were largely opposed.
“The UK life project remains on
track to deliver its targeted returns;
and the board confirms that
Resolution will be exclusively focused
on the UK life project,” it said.
Resolution has been sitting on a
cash pile of more than £1bn in recent
months. Investors have been expect-
ing it to outline its plans to return
that since February, when it said it
was highly unlikely to buy any more
UK life insurance policy books.
However, the firm warned the syn-
ergies – a result of consolidating the
three life companies into one, more
efficient whole – are subject to both
regulatory and delivery approvals.
The £500m is on top of £400m of
annual distributable cash it already
intends to return. It also hopes to
release more cash as it clarifies its
Solvency II needs, which may require it
to hold less capital than at present.
ANALYSIS l Resolution
310 p 307.55
7 June
300
290
280
270
9 May 16 May 23 May 31 May
Resolution was founded by insurance veteran Clive Cowdery
Cowdery’s buyout fund is dead man
walking but shares still worth a look Commerzbank
WHEN Clive Cowdery returned
with the second incarnation of
Resolution, his life insurance con-
solidation vehicle, he had ambi-
tions to match the firm’s moniker.
To be frank, he hasn’t resolved
very much and today’s £250m buy-
back suggests he doesn’t plan to
either. February’s “pause” on new
acquisitions is now looking like a
final stop. The zombie fund label
couldn’t be more apt.
Still, shareholders can comfort
themselves with the £500m of cash
that will be returned over the next
12 months (a second tranche of
£250m will come in the first half of
2012).
There could be more share buy-
7 Jun
Picture: REX
backs or special dividends to come.
Analysts at Barclays Capital reckon
Resolution will return a further
£500m in 2012, with even more
should Resolution start disposing
of its assets.
Assuming that buybacks hit
£1.2bn and Resolution sells
Lombard and Friends Provident,
BarCap has a 418p upside valua-
tion.
Cowdery might have given up on
his grand plan but the shares still
haven’t had their day.
david.crow@cityam.com
BOTTOMLINE
Analysis by David Crow
CITYA.M. 8 JUNE 2011
LSE rival bidder
eyes new firms
CAPITAL MARKETS
▲
THE HOSTILE bidder for Toronto
bourse operator TMX Group is in
talks with new members, as it looks
to derail an agreed merger with the
London Stock Exchange.
Desjardins Financial Group, GMP
Capital and Dundee Capital are close
to an agreement to join the Maple
consortium of Candian banks and
pension funds to bolster its $3.7bn
(£2.4bn) hostile takeover bid for TMX
Group.
They are threatening to derail the
LSE’s friendly $3.5bn bid.
raises €5.3bn
▲
BANKING
COMMERZBANK, Germany’s second
largest lender, has raised €5.3bn
(£4.7bn) from a rights issue in order to
repay state aid.
The transaction, priced at a 45 per
cent discount, is part of a series of steps
to repay the German government for
the cash it injected to support the bank
during the financial crisis.
Commerzbank has now raised €11bn
to repay the aid. Together with €3.3bn
from excess regulatory capital, the
lender will have paid €14.3bn towards
the €18.2bn it owes the government.
 v i s i t o u r m o t o r e x p o s ta n d f o r a t e s t d r i v e .*

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 10 News CITYA.M. 8 JUNE 2011

City MP throws his weight

behind Broadgate campaign
to the 1980s development, said two buildings earmarked for demoli-
▲

BROADGATE CAMPAIGN
BY ALISON LOCK English Heritage was wrong to recom- tion.
mend the site for a Grade II* listing “I don’t think it makes sense to list
MARK Field, the MP for last week. the Broadgate site. Great though it
the Cities of London If culture secretary was, it is now 25 years old and we
and Westminster, Jeremy Hunt decides to need to show London is open for busi-
has thrown his follow the advice of ness,” Field told City AM.
weight behind our English Heritage and Field stressed that planning deci-
campaign to allow a protects the estate, sions were “rightly a matter for the
new development then investment bank local authority”, in this case the City
on the Broadgate UBS will have to aban- of London, which has approved plans
estate. don plans to build a new for a new 700,000 square foot build-
Field, whose constituency is home £340m headquarters on the site of ing to house UBS. Mark Field MP said the Broadgate site should not get Grade II* listed status

Boss of Charles
Stanley blasts
MSc in Banking
Practice and Management
Keydata levy
associations that are calling for a
▲
FINANCIAL SERVICES
high-level enquiry into how such a
BY ALISON LOCK thing, on such a scale, could possibly
SHARES in stockbroker Charles have been allowed to happen.”
Stanley jumped 7.3 per cent yester- However, he praised the broker’s
Develop the in-depth industry day after it unveiled a 29 per cent performance and outlined an opti-
hike in profits in the year to March. mistic outlook. “The future remains
knowledge and high-level The wealth manager’s adjusted
pre-tax profit rose to £17.7m from
as uncertain as ever. But we are well
placed to move forward. So my
management skills £13.7m in 2010, beating market
expectations by about seven per
guarded feeling of confidence about
the outlook remains undaunted,” he
necessary to undertake cent, while earnings per share of
28.4p rose from 21.2p in 2010.
said.
Funds under management rose 13
However, it was hit with a £2.6m per cent to £14.5bn, from £12.8bn in
leadership roles in levy from the Financial Services March 2010, while fee and commis-
Compensation Scheme to compen- sion income rose 21 per cent to
the retail and sate investors for losses incurred
when investment firms fail – most
£50m from £41.4m, as investment
management fees increased by 18.9
commercial notably the collapse of financial
product provider Keydata in 2009.
per cent to £27m.

Its chairman Sir David Howard ANALYSIS l Charles Stanley

banking sector. attacked the “unfairness” of the
p
scheme in a statement, and called 340 341.75
for better regulation of misbehaving 7 June
330
firms and the products they sell.
“These appear to be rogue busi- 320
nesses, operating in areas of the
industry unrelated to us, marketing 310
products or services that should
Visit our open evening have been stopped at inception,” he
said.
300

Wednesday 22 June “We join with the many compa-

nies, professional bodies and trade
9 May 16 May 23 May 31 May 7 Jun

London City campus

Venue: ifs School of Finance,
Peninsular House,
36 Monument Street, EC3R 8LJ HSBS settle US class
action over Madoff
www.ifslearning.ac.uk/CityAM FINANCIAL SERVICES Fund, which transferred a net
▲

BY HARRY BANKS $312m to Madoff, the bank said yes-

HSBC said it has agreed to pay
$62.5m (£38m) to settle a class
action brought against it in the
United States over its role in provid-
www.ifslearning.ac.uk/MSc enquiries@ifslearning.ac.uk +44 (0)1227 829499 ing administrative services to a fund
that placed cash with Wall Street
swindler Bernard Madoff.
The ifs School of Finance is a registered charity incorporated by Royal Charter The action was brought by
investors in Thema International
terday.
Madoff is serving a 150-year prison
sentence after pleading guilty in
March 2009 to orchestrating what is
considered to be the biggest Ponzi
scheme in history.
HSBC said it continued to “vigor-
ously” defend itself in other Madoff-
related proceedings brought against
it and its subsidiaries.
 The Capitalist
12
GOVERMENT
GIVES ARK
FUNDRAISER
£1M BOOST
TOMORROW night’s Ark hedge fund gala
has moved to the centre of the political
agenda, after the government agreed to
match private donations to the tune of
£1m for the charity’s vaccination pro-
gramme in Zambia.
Led by development secretary Andrew
Mitchell, the pledge is part of the govern-
ment’s commitment to increasing
British taxpayer contributions to the UN-
backed Global Alliance for Vaccines and
Immunisations – the body set up by
Microsoft founder Bill Gates – ahead of
GAVI’s international conference starting
in London next Friday.
“This is a great financial boost and a
hugely significant endorsement,” said a
spokesperson for Ark, which has commit-
ted $5.5m over three years to vaccinating
160,000 infants in Zambia against diar-
rhoea caused by Rotavirus. The virus kills
more children under five in Africa than
AIDS, malaria and measles combined.
Guests who bid for the auction lot to
buy vaccines – one of 18 charity and luxu-
ry lots on the night – will each contribute
£3,000. This sum was previously enough
to immunise 100 children, but will now
stretch further following this week’s
Guests at tomorrow’s Ark gala can bid £3,000 to support the Rotavirus vaccination programme
announcement by GlaxoSmithKline and
Merck & Co that they will lower their
Rotavirus vaccine prices.
So a flying start for this year’s fundrais-
ing efforts. Ark told The Capitalist that it
will be happy if tomorrow’s gala raises “in
the low double-digit millions” for its
international projects. But the boost from
the government has given it the best pos-
sible chance of beating 2010’s £14.1m,
troubled economic climate or not.
TIME AT THE BAR
CLIENT meetings may never be the same
again for Tim Beale, litigation partner at
SJ Berwin, as his favourite gastropub, The
Engineer in Primrose Hill, is fighting to
save itself from reoccupation by its land-
EDITED BY CITYA.M. 8 JUNE 2011
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
The Ark gala
has been
given a £1m
boost by the
government,
which will
match private Last orders: The Engineer in Primrose Hill
donations in acterful London landmark.”
Although it could be all change again,
the auction following yesterday’s reports that the
group’s minority shareholders are plot-
ting a £1.74bn takeover for the chain,
which would make the pub’s new land-
lords the billionaire Spurs stakeholder Joe
Lewis with the Irish racing tycoons JP
McManus and John Magnier.
lord Mitchells & Butlers. With that level of firepower behind the
“It’s almost home from home,” Beale venue, The Capitalist is sure The Engineer’s
told The Capitalist, who said he will stop famed wine list wouldn’t suffer too badly.
entertaining clients at the pub if the
FTSE 250 firm takes back the lease in
October from current lettee Eddie Francis,
because he fears “the extraordinary level
GONE WALKABOUT
HEAD to Hyde Park on 18 June to support
of detail and care” won’t be replicated by the London Walkabout, a 5k loop starting
the corporate chain. from Hyde Park undertaken by senior
Over to Mitchells & Butlers, bankers to raise funds to buy wheel-
which insists it will continue chairs for the developing world.
running the venue as “a The event is organised by former
unique, warm and welcoming Goldmans banker Carolina
community pub”. “We have no Gonzalez-Bunster (left) who set up
intention of converting The The Walkabout Foundation when
Engineer into any sort of brand- her brother was paralysed in a car
ed operation,” said a spokesper- accident in 1994. Email london-
son. “It will continue as a walkabout@thewalkaboutfounda-
distinctive, individual and char- tion.org for more details.
 14 News
Santander still failing to satisfy its customers
BRANDINDEX
STEPHAN SHAKESPEARE
A
T the start of the year we
looked at how Santander’s
BrandIndex scores had nose-
dived during 2010 taking it
from competing with HSBC as the
best perceived of the big banks to
competing with RBS as the worst per-
ceived.
We saw that this decline was cus-
tomer led (the biggest hit had been
on recommendation) and from
TellYouGov data we could see that
people were spontaneously tweeting,
emailing etc every day to let us know
how poor the bank’s customer serv-
ice was.
We said that improvements were
needed to reverse this decline and,
approaching the mid-point of 2011, it
is a good time to take a look at how
they’ve done.
Since the start of the year
Santander’s recommendation scores
have varied in a range between -6 and
-13 (currently standing at -11) with
the overall index (a combined score
from six different perception meas-
ures) even steadier, never going high-
er than -5 or lower than -8 (it is
currently -8).
DECLINE HALTED BUT NO REBOUND
So there is some good news in one
respect; the slow but steady decline
certainly seems to have been halted
but there is, as yet, no sign of a
rebound.
With a recommendation score 17
points below HSBC and an index
score 14 points below there is a long
way to go before they get back to
where they were 15 months ago in
the spring of 2010.
Poor service comments still domi-
nate on TellYouGov – 86 of the last
100 comments have been negative –
ANALYSIS l Banks' Brand Index score
15.0
10.0
5.0
HSBC
0.0 Santander
-5.0
-10.0
-15.0
-20.0 Royal Bank of Scotland
-25.0
1 Jan 2010 1 Jan 2011
NEWS | IN BRIEF
HTC sees May profits double
Taiwanese smartphone maker HTC said
yesterday sales for May reached £860m,
more than double the same month a year
earlier. The monthly sales compared with
£400m a year ago and £820m in the
previous month. The handset manufac-
turer has seen its sales rocket since it
started to predominantly produce hand-
sets for Google’s Android mobile operat-
ing system.
CITYA.M. 8 JUNE 2011
and while that remains the case,
Santander is likely to continue to be
perceived as one of the worst rather
than one of the best banks.
Stephan Shakespeare is chief executive of
YouGov
ANALYSIS l Banks' recommendation score
15.0
10.0 HSBC
5.0
0.0
-5.0 Santander
-10.0
-15.0
-20.0
Royal Bank of Scotland
1 Jun 2011 1 Jan 2010 1 Jan 2011 1 Jun 2011
Ofcom 4G plan worries phone firm
Everything Everywhere has raised fresh
concerns over 4G spectrum auction plans
proposed by Ofcom. The communications
watchdog has set strict limits on the
amount of 4G spectrum – used to power
next generation mobile internet – each
player can buy, partly in a bid to protect
the UK’s smallest operator 3. Everything
Everywhere is worried proposals could
benefit its rivals.
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statted otherwise.
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worldwide. Other Other product
product a and
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trademarks, see see www.ibm.com/legal/copytrade.shtml.
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16 News CITYA.M. 8 JUNE 2011

Apple strengthens its grip on music

But iCloud is essentially another reason to buy firm’s hardware, says Steve Dinneen

T
HAT Apple was ready to launch
a cloud-based music service has
been the worst-kept secret since
a certain Welsh footballer tried
to keep his name out of the newspa-
pers.
Exactly what Apple’s latest venture
means for the industry, however, is
only just becoming clear. Steve Jobs’
insistence on returning from medical
leave to show it off on Monday shows
that the Cupertino-based firm sees
this as more than just a pumped-up
software update.
While the free version of the cloud
service will offer a useful syncing and
storing solution, the iTunes tie-in is
where it gets interesting.
Anything downloaded from the
iTunes Store will be made available
across all your devices for free. But for
$25 a year, iTunes Match will take
every song from your iTunes library –
including those ripped from your CD
collection and any that may have fall-
en off the back of a virtual lorry – and
correlate them with a version stored
on its servers. You will then be able to
download them onto your
iPhone/iPad/Mac/PC without spend-
ing hours making the transfer.
Anything not included in Apple’s
18m-strong library will be uploaded
separately. Altogether Apple will let
you stash 20,000 songs in its cloud for
the annual fee.
Apple has paid out $100m to the
major record labels to get the go-
ahead for the service, which smells
like a pay-off for allowing potentially
illegally downloaded content into
the cloud. What it gets in return,
aside from the subscription fees, is
yet another reason for customers to
remain inside the Apple eco-sys-
tem – and shell out for more shiny
hardware. Updates to its mobile plat-
form that allow you to manage your
music through your iPhone also
weaken the tie to a “mother ship”
computer, giving you one less reason
to buy a Windows PC.
So the iCloud will help continue
the slow erosion of Microsoft’s mar-
ket share. But it could also spell trou-
ble for rival cloud services including iTunes Match ($25)
Amazon’s Cloud Drive and For $25 a year, iTunes Match will
Google’s Music Beta. While both are take every song from your iTunes
cheaper than Apple’s offering, they library and match it up with a
do not have the same complimenta- high quality version stored on
ry hardware – in short, if you
already own an iPhone or iPad it’s a Apple’s servers. This even
no-brainer. includes songs downloaded from
Spotify will breathe a tentative sites not verified by Apple (read
sigh of relief that Apple did not LimeWire, IsoHunt et al). You can
release a full music subscription then download these songs onto
service, as some predicted. your iPhone, iPad etc, making
What Apple has done is bring managing your music far easier.
iTunes further into the centre of The $25 allows you to store up to
your musical life. It also makes a 20,000 songs in the cloud.
subscription service more likely to
stick, if and when Apple decides to
launch one.

BIG NEWS FROM THE E3 GAMES EVENT

T
HE highlight of yesterday’s E3 Wiimote controller for multi-player
gaming showcase event in Los games.
Angeles was the resumption of Although technical specs (as well
the console wars, with as a launch date) were thin on the
Nintendo unveiling the follow-up to ground, Nintendo confirmed it will
its blockbuster Wii. answer one of the major criticisms
When the Wii launched in 2006 of its predecessor and offer HD
Nintendo said it would change the graphics. The innovative console
face of gaming. It did, drawing in a certainly looks like a risk – but
whole new demographic and with Apple confirmed as a major
knocking Nintendo out of a decade- force in the gaming industry, and
long rut. The Wii U hopes to contin- both Microsoft’s Xbox and Sony’s
ue this trend. At first glance, the PlayStation 3 eroding its market
tablet-like, motion-sensing con- share, the Wii U might just be
troller is frankly baffling. Featuring worth it.
a whopping 6.2 inch touch-
screen it looks like a console
in its own right (which it
can be, with some games,
and apps from the
Nintendo store, playable
on the unit alone). It
can also be combined
with the traditional
motion-sensing

Sony unveils new console and

apologises for elephant in room
▲

TECHNOLOGY internet against both fellow Vita

THE other big announcement
from LA was from Sony, which
finally released details of its new
portable console.
After issuing a grovelling apolo-
gy to its users over the security
breach that brought its
PlayStation Network (PSN) to its
knees, Sony showed off the Vita,
calling it its biggest release since
the PlayStation 3 five years ago.
The console, which has a five
inch touch-screen display, will
allow users to compete over the
users and PlayStation 3 gamers.
It is expected in the UK some
time before Christmas and can be
pre-ordered for £230 for the wi-fi
only version, and £280 if you want
the optional 3G connectivity.
Sony will need the Vita to
instantly perform after a dreadful
year that has rocked its reputation
both inside and out of the gaming
community. Priced higher than its
rival the Nintendo 3DS, which
went on sale earlier this year, it
will certainly have its work cut
out.
CITYA.M. 8 JUNE 2011
l NEWS FROM IATA AIRLINE INDUSTRY CONFERENCE
iCloud (free)
The free version of the service
will sync information from
sources including your con-
tacts, calendar, email and
downloaded apps across up to
10 authorised devices.
Anything downloaded from the
iTunes Store will be available
across all your devices.
Boeing’s Jim Albaugh said there was “no pressure” to make an Airbus rival Picture: REUTERS
Boeing says it will defend
the supremacy of its 777
AVIATION
▲
BY SCARLETT ARCHER
BOEING vowed yesterday to defend its
successful 777 wide-body aircraft and
signalled it feels under no immediate
pressure to respond to a reported
challenge from European rival
Airbus.
Industry sources revealed on
Monday that Airbus planned to place
a bigger engine on one variant of its
future A350 plane in a bid to compete
with Boeing’s 365-seat mini-jumbo.
But Jim Albaugh, head of Boeing’s
commercial planes unit, yesterday
expressed no concerns over the
alleged competition from Airbus: “We
have time to analyse the situation
and at some point in time we’ll do
either a derivative or a new plane to
make sure we secure what I’ll call the
high ground in the markets we
serve,” he said.
News 17
Business travel
demand hold
up, says IATA
TOURISM
▲
BUSINESS travel demand is holding
up better than increasingly price-
sensitive leisure travel, according to
the chief economist for the
International Airport Travel
Association (IATA).
IATA, which accounts for ninety-
three per cent of global air traffic, is
forecasting annual growth in rev-
enues this year of around eight per
cent to $600bn (£366bn).
Sparking confidence in renewed
economic recovery, its chief econo-
mist Brian Pearce said yesterday
that airlines expect renewed
growth in air cargo demand in the
second half of this year, as move-
ments of capital goods and high-
value components have started to
pick up.
Chinese domestic traffic, often
regarded as a barometer of the
country’s growth, has dipped tem-
porarily as the authorities moved to
head off inflation.
But Pearce said that aviation traf-
fic would return to a path off struc-
tural growth and that the aviation
industry outlook in Asia, excluding
Japan, remained positive.
 18 News
Commodities
still driving
up food costs
RETAIL
▲
BY JULIAN HARRIS
FOOD prices at UK stores rose again
last month, the British Retail
Consortium (BRC) revealed today.
Food costs were 4.9 per cent higher
than in May 2010, up from April’s
annualised food inflation rate of 4.7
per cent.
Soaring prices of fresh foods were
the main driver, with year-by-year
inflation jumping to 4.2 per cent,
from April’s rate of 3.3 per cent.
Fresh food was half a percentage
point more expensive than in April.
“Recent volatility in the cost of key
commodities, linked to dry weather
and global demand, is now working
through to the shop price of some
food,” explained Stephen Robertson
of the BRC.
London’s rising
housing rents
begin to slow
▲
HOUSING
RENT hikes in London have begun to
slow, according to a Homelet index
released yesterday.
Rented accommodation in the cap-
ital cost 0.42 per cent more in May
than April, yet this was the slowest
rate of growth seen this year.
Demand is being dented by high
inflation, particularly in areas such as
the north west, the report said. In the
face of rising price pressures many
young people are choosing to stay in
parents’ accommodation, prompting
landlords to cut rents, the report said.
Corn and wheat are up 112 per cent
and 72 per cent respectively com-
pared to the same time last year, the
BRC report said.
“Rising gas and electricity prices
are pushing up costs at every stage of
the supply chain,” Robertson added.
Price pressures across the economy,
combined with the squeeze of high
taxes and below-inflation wage rises,
are actually forcing some other shop
prices down, the BRC has found.
Non-food sales slipped 0.2 per cent
in May compared to April, just 0.8 per
cent above last year’s level. Overall,
shop prices were 2.3 per cent higher
than last year, down from 2.5 per cent
in April.
The BRC will today launch a vigor-
ous defence of large retailers. Big
stores “bring the footfall so desperate-
ly needed” to high streets, it will say.
UK house prices in
downward trend
HOUSING
HOUSE prices rose just 0.1 per cent in
May, the latest Halifax index revealed
yesterday, barely recovering from a
sharp 1.4 per cent drop in April.
The underlying decline in prices
was shown by a 1.2 per cent fall in the
three-monthly measure, which irons
out some of the monthly volatility in
the figures.
Prices in the three months to May
were 4.2 per cent lower than at the
same time last year.
“Low earnings growth, higher taxes
and relatively high inflation are all
HAVE YOU NOTICED AN INCREASE IN FOOD PRICES?
Interviews by By Phoebe Torrance and Shiba Babamiri
DARREN LOCK | KIRKLAND AND ELLIS
“I haven’t really noticed a large
increase because everything in the
City has always been expensive.
I try to use cheaper brands which are
just as good as expensive ones, rather
than cutting down.”
ELAINE NUTTALL | BLACKMORE BORLEY
“Yes, I have found the price has
increased a lot, but I do tend to eat
out a lot. I often try to buy just what is
needed rather than spending money
on luxury items.”
JULIE FABIAN | QBE INSURANCE
“The price is always fluctuating, I
have already switched to supermar-
ket brands, which are cheaper, but
there is always a catch with the spe-
cial offers which draw you in and
make you spend more.”
putting pressure on household
finances,” said Halifax economist
Martin Ellis.
“These factors are probably con-
straining housing demand and apply-
ing some downward pressure on
prices.”
The number of houses sold in the
opening four months of the year was
down five per cent compared to last
year, according to official data listed
in the report.
However, there are “tentative signs
of an improvement in activity”,
Halifax said.
Companies hit the brakes
on recruitment in May
▲
EMPLOYMENT
PERMANENT employment in the UK
grew for the 22nd month in a row in
May, yet the rate of jobs growth
slowed to its weakest level since
October last year, a report revealed
today.
Temporary jobs continued to rise,
yet at a remarkably sluggish rate. The
purchasing managers’ index (PMI) fell
to 52.4 for temporary roles, from 56.6
in April, and 2011’s peak of 61.5.
Scores above the no-change mark
of 50 signal growth.
Some of the drop was attributed to
April’s late bank holidays, which
delayed recruitment procedures.
CITYA.M. 8 JUNE 2011
NEWS | IN BRIEF
Rise in UK’s foreign acquisitions
British companies boosted their acquisi-
tions abroad in the first three months of
the year, official data showed yesterday.
The total value of acquisitions jumped to
£18.3bn in the first quarter, from just
£3.8bn in the last quarter of 2010, hit-
ting the highest reported value for out-
ward investment since late 2007. Total
acquisitions of UK companies from over-
seas fell slightly to £6.4bn, from £7bn in
the fourth quarter of 2010. Spending by
UK companies on intra-UK acquisitions
fell to £1.2bn, from £6.3bn in the previ-
ous quarter.
Uptick in Eurozone’s retail sales
High street sales across the Eurozone
stunned economists yesterday, soaring
by 0.9 per cent in April, compared with
March. However, the spike merely pared
the sharp 0.9 per cent monthly drop in
sales recorded in March. Compared to
the same time last year, sales were up
1.1 per cent in April. Across the wider
EU area, retail sales were up 1.9 per cent
annualised.
German factory orders recover
German factory orders climbed 2.8 per
cent in April compared to the previous
month, reversing the 2.7 per cent drop
seen in March. “Assuming the current
reading persists in May to June, factory
orders would be 1.5 per cent above the
their quarter four [2010] level, providing
a favourable indication for production
output,” commented Barclays Capital.
Yet fears for the economy are tem-
pering the drive for new recruits, the
report said.
“The latest figures are worrying –
because they reveal a marked slow-
down of the UK jobs market,” said
Bernard Brown of KPMG, which com-
piled the data along with Markit.
“We’ll need to see whether this is a
trend or a blip,” Brown added.
“Employers across all sectors are
becoming more cautious about hir-
ing new staff.”
Growth in overall job vacancies
slowed to a five-month low of 57.7 in
the index, down from a PMI score of
59.3 in April.

 

 
    

  


 
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CITYA.M. 8 JUNE 2011
BP denies plan to sell TNK-BP
▲
ENERGY
BY HARRY BANKS
BP yesterday insisted that it had no
plans to sell down its half share in
Russia’s third-largest oil producer
TNK-BP, denying comments from
sources close to its partners that it
threatened such a move.
The oil giant said its focus in Russia
was on developing its TNK-BP ven-
ture, and denied it was preparing to
reduce its interest.
“BP has taken no decision to sell
any of its shareholding in TNK-BP, and
there is no current intention to do
so,” a spokesman said.
Sources close to AAR, a group of
Soviet-born billionaires that owns 50
Scot Power
hikes its gas
bills by 19pc
▲
ENERGY
BY HARRY BANKS
UTILITY firm Scottish Power will hike
its domestic power and gas tariffs
from 1 August in response to rising
wholesale energy prices, it announced
yesterday, becoming the first of the
power companies set to raise house-
hold bills this summer.
Gas bills for Scottish Power cus-
tomers will increase by an average of
19 per cent, while power bills will be
10 per cent more expensive, a rise that
will affect 2.4m UK households.
“Prices for gas and electricity have
increased significantly since the end
of last year and continuing unrest in
global energy markets means future
prices are volatile,” said Scottish
Power’s retail director Raymond Jack.
He said costly government pro-
grammes for meeting environmental
and social targets and high transmis-
sion expenses were also reasons for
the tariff rises.
The utility’s 70,000 most vulnerable
customers can receive a discount on
bills through a dedicated scheme.
The company also said it was invest-
Smiths News buys Dawson Holdings Actelion shakes up board
to increase presence in books market in a bid to appease Elliott
▲
PUBLISHING
BY SHIBA BABAMIRI
NEWSPAPER and magazine distribu-
tor Smiths News yesterday
announced it will buy leading aca-
demic book supplier Dawson
Holdings for £20m in a cash deal to
expand its book business.
The deal comes two years after
Smiths News entered into the books
business through the acquisition of
Bertrams, and it now aims to
expand the scope of its activities
with access to Dawson’s academic
per cent of TNK-BP, said BP executives
had indicated on Monday that it was
ready to sell down its stake.
AAR interpreted the comments as
a possible negotiating tactic to
advance BP’s hopes for a tie-up with
Kremlin-controlled Rosneft, the
sources said.
BP signed a £10bn share swap and
Arctic exploration deal with Rosneft
in January, but AAR blocked the deal
in court on the basis the TNK-BP
shareholder agreement obliged BP to
use TNK-BP as its primary vehicle for
investment in Russia.
The deal was supposed to mark a
turning point for BP after the Gulf of
Mexico oil spill in April 2010.
Sources close to BP and AAR said
ing £4bn between 2010 and 2012 into
renewable energy, smart grid technol-
ogy and upgrading power networks.
MPs and energy regulator Ofgem
have criticised Britain’s six largest util-
ities for passing on wholesale price
gains to customers more quickly than
falling prices.
Richard Lloyd, executive director of
Which?, said: “These price hikes from
Scottish Power will be a shock for its
millions of customers already strug-
gling with the rising cost of living,
and warnings from other suppliers
suggest that more bad news is to
come.
“This is yet another example of the
Big Six blaming the wholesale energy
market for increases to domestic cus-
tomers’ bills, but energy companies
have a lot of work to do to convince
consumers that energy prices are fair.”
Consumer Focus head of energy
Audrey Gallacher added: “Companies
have been softening customers up for
price rises for months but customers
will shocked at the scale of this rise.
“Every household in the country
will now be bracing themselves for
impact.”
libraries and e-book platform.
The academic market is now
worth £70m per year with Dawson
leading the market share with 33
per cent. Smiths News currently
gets 7.5 per cent of its revenue from
the books business.
The deal is expected to add £4.5m
to Smiths’ earnings before tax,
depreciation and amortisation in
its first financial year.
Chief executive Mark Cashmore
said the acquisition represents “an
excellent opportunity” to strength-
en one of their core businesses with
that as part of the talks to allow the
Rosneft tie-up to proceed, BP last
month told AAR it could sell part of
its stake in TNK-BP to Rosneft if AAR
did not lift its opposition to the deal.
Such a move could negate the TNK-
BP shareholder agreement, thus
removing a bar on BP partnering
with Rosneft, sources close to both
sides said.
AAR fears that if Rosneft gained a
foothold in TNK-BP, AAR’s effective
control of the company would be
challenged.
“AAR would be deeply, deeply
unhappy with it,” one source close to
the billionaires said, adding that if BP
did this, AAR could revive its litiga-
tion against the Rosneft tie-in.
President Naoto Kan has submitted a report to the IAEA
Japan vows to overhaul
nuclear safety reporting
ENERGY
▲
BY PHOEBE TORRANCE
THE Japanese government said yester-
day that it will set up an independent
nuclear regulatory agency, breaking
the widely criticised ties between the
Japanese utility industry and officials
overseeing its safety.
In a report that will be presented to
the International Atomic Energy
Agency, the government calls for over-
hauls in how Japan operates its
the transaction creating immediate
value for their shareholders whilst
continuing to focus on long term
strategy to diversify revenues and
profits.
The deal is expected to be com-
pleted by early September and the
company hope that the scale of its
combined entity will help with cost
savings of £3.8m by the end of
financial year 2014.
Smiths News, which bought 20
Dawson News depots from Dawson
Holdings in 2009, said it would pay
17.72p for each share.
Lamprell sees improving
market for its oil services
▲
ENERGY
OIL rig services group Lamprell has
said that its performance so far this
year has matched management expec-
tations, following a strong perform-
ance in 2010 boosted by high oil prices.
The company, which builds mobile
jack-up rigs, said it had also seen a
turnaround in the new-build market
since the spill at BP’s Macondo oil rig
in April last year.
“We continue to see evidence of
improvements in our operating mar-
kets and our bid activity remains at a
historically high level. We are experi-
Picture: REUTERS
nuclear plants.
Japan has also been criticised for not
disclosing key information about the
plant and the amount of radiation
that successive explosions produced.
The report said that there is a possi-
bility that melted fuel has penetrated
the reactor pressure vessels in three
units and dropped into the primary
containment vessel, after the nuclear
safety agency said its estimate of the
radiation released so far during the cri-
sis was double its earlier estimate.
▲
HEALTHCARE
ACTELION, Europe’s largest biotech
company, changed its management
structure and appointed a chief oper-
ating officer yesterday in a move that
answered demands from its activist
investor Elliott Advisors.
Actelion promoted its head of busi-
ness strategy and operations Otto
Schwarz to COO, allowing chief execu-
tive Jean-Paul Clozel to focus more on
strategic matters.
The company saw off a challenge
from hedge fund Elliott at its annual
News 19
encing renewed activity in the rig
refurbishment and upgrade market,
representing a strong improvement
from the lower levels of expenditure
experienced in the second half of
2010,” said chairman Jonathan Silver.
At the end of April, Lamprell’s order
book was around £567m, mostly from
its engineering, construction and pro-
curement projects.
In May, Lamprell made an offer for
United Arab Emirates-based Maritime
Industrial Services (MIS) from its
Norwegian owners for £208.1m, in a
move to broaden its engineering
capacity.
NEWS | IN BRIEF
Pennon buys Storm Recycling
Waste and sewerage group Pennon has
bought Storm Recycling for £1.7m, in a
bid to expand its waste management
services. Storm specialises in the recy-
cling of cardboard and plastics, and runs
a depot in Cheshire that handles around
20,000 to 25,000 tonnes of recycling a
year. The acquisition was made by
Pennon’s subsidiary Viridor Waste
Management, “in line with the Group’s
strategy of expanding its waste man-
agement activities, particularly in the
recycling sector”, the group said.
Profits and sales drop at Findel
Home shopping and education supplies
group Findel reported a fall in profits
yesterday. The dynamic multi channel
retailer saw a 2.6 per cent drop in sales
to £532.6m from £547m in the year to 1
April. Findel was hit by the discovery of
accounting irregularities at the educa-
tion supplies division followed by an
emergency debt refinancing in July,
despite a fall in profits Findel has said it
was confident it had established a
secure platform for future growth.
St-Gobain plans to list Verallia
France’s Saint-Gobain plans to brave
tough conditions in the European mar-
ket for initial public offerings and list its
glass packaging unit in order to focus on
home and construction products. The
glassmaker said it would sell 40 per
cent of Verallia to investors, raising up to
€958m (£855m). It could raise the
amount to 46 per cent if demand was
strong enough, leading to proceeds of as
much as €1.1bn. Verallia, which makes
bottles and jars for food and drink prod-
ucts, said it would extend its business
into emerging markets and look at
acquisitions there as it grapples with
slow recovery in its European markets.
meeting last month, but analysts said
the top-level changes were a sign it was
reacting to shareholder pressure.
Elliott, Actelion’s largest sharehold-
er, had urged the Swiss biotech group
to consider seeking a buyer after a
string of product setbacks and accused
it of pursuing a high-risk strategy that
hurt shareholder value.
Elliott also called on Clozel – a for-
mer Roche scientist who founded
Actelion in 1997 – to step down from
the board on governance grounds,
arguing he had too many top man-
agers reporting directly to him.
20 News CITYA.M. 8 JUNE 2011

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BEST OF THE BROKERS
Edited by Harriet Dennys
ANALYSIS l HSBC HSBC
623.20 Goldman Sachs rates the bank “buy”
KPMG Dolphin Capital Investors currently a senior managing director in 670
p 7 Jun
David O’Hara has The emerging markets resorts investor Blackstone’s corporate private equity 660 with a target price of 920p. The bro-
been appointed as a has appointed professor Christopher group and chairman of The Blackstone 650 ker has raised its earnings forecasts
principal investment Pissarides to the board as an inde- Group International Partners, which is 640
for 2011-13 by up to seven per cent,
consultant to lead pendent non-executive director, as a 34 per cent shareholder in Merlin. 630
KPMG’s newly Nicholas Moy, independent non-execu- arguing the market underestimates
620
established Scottish tive director of Dolphin, resigns. Landmark HSBC’s shift to growth markets.
advisory team. Pissarides is a professor of economics The boutique serviced offices provider 1 Mar 1 Apr 1 May 1 Jun
O’Hara, who will be at the London School of Economics. has appointed Kirstin Donoghue as
based in Glasgow, client liaison manager for its flagship
ANALYSIS l Weir Group
2,000.00 WEIR GROUP
2,000 p 7 Jun
joins from Hymans Merlin Entertainments serviced office centre in Heron Tower JP Morgan rates the engineer “over-
1,900
Robertson, where he provided invest- The world’s second-largest visitor on Bishopsgate, prior to its opening weight” and has raised its target
ment advice to a range of private and attraction operator has appointed next month. Kirstin currently works as 1,800 price to 2150p. The broker has raised
public UK pension schemes. Gerry Murphy as a non-executive client liaison manager at Landmark’s
director of the company. Murphy is 125 Old Broad Street centre.
1,700 its earnings per share forecast by
1,600 two per cent, expecting growth in
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com Weir’s service pump business.
1 Mar 1 Apr 1 May 1 Jun

SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT +44 (0)20 7092 0053 ANALYSIS l William Hill WILLIAM HILL
morganmckinley.com 217.00
220 7 Jun
p Citi rates the bookmakers a “buy”
210
and has raised its target price from
200 230p to 260p. The broker prefers the
190 firm to rival Labrokes, with William
180 Hill continuing to gain market share

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day 1 Mar 1 Apr 1 May 1 Jun
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Resolution cash return

CELEBRATIONS gives boost to the FTSE
CELEBRATING

Chamberlain’s is
Chamberlain’s is celebrating
celebrating
iitsts 10th birthday
10th b irthday wwith
ith a new
new ten THELONDON Office space supplier Regus said it
would withdraw its £60m offer for
MWB Business Exchange if the com-

REPORT
YEARS
sseason
eason menu
menu andand a joint
joint pany’s majority shareholder and
rival bidder, MWB Group Holdings,
ssummer
ummer evening
evening offer
offer with
with did not engage in talks by 13 June.
The FTSE 100 closed up 1.49 points
Santa
S anta Margherita
Margherita – celebrating
celebrating

B
RITAIN’S top share index at 5,864.65, having edged 0.1 per
closed marginally higher yes- cent higher on Monday. The index
550
0 years
years of
of Pinot
Pinot Grigio.
Grigio. terday as UK insurer fell 1.4 per cent last week, because of
Resolution’s bumper cash worries over Europe’s debt prob-
return helped boost insurance-relat- lems.
Chamberlain’s summer menu ed firms, while integrated oils
uses the ver y best fresh weighed on the downside. ANALYSIS l FTSE 100
The market reacted positively to 5,864.65
seafood, sourced by Resolution’s commitment to return 6,100 7 June
Chamberlain and £500m to investors.
“One would encourage share buy-
Thelwell Ltd of backs in a modest way because if a 5,900
Billingsgate Market, company is cancelling its shares and
seafood wholesalers you remain a shareholder you
would benefit from the earnings 5,700
of the highest accretion,” said Paul Mumford, who
qualit y since 1947. manages a £25m fund at Cavendish
Asset Management. 9 May 16 May 23 May 31 May 7 Jun

Bernanke’s bearish talk

taste
£10
FOOD &
A OF
CHAMBERLAIN’S
extends US losing streak
Chill out and select one of 6 taster dishes
WINE OFFER with a glass of Santa Margherita Pinot
further monetary stimulus to sup-

Grigio for £10. Dishes include gratinated THENEW YORK port growth.
Bernanke also issued a stern warn-
ing to lawmakers in Washington who
razor clams, tempura mullet with chorizo
or queenie scallops, to name a few. REPORT are considering aggressive budget
cuts, saying they have the potential to
derail the economic recovery.
Evening of fer, available 4 pm to 9. 30 pm, A batch of weak economic data

U
Chamberlain’s Basement Bar and outside S stocks extended a losing recently, especially in the job market,
Terrace, until 31st August. streak for a fifth day on yester- has pushed major indexes below their
day on mounting concerns support levels. The S&P 500 is down
about the economy after bear- 4.2 per cent from a month ago.
ish comments from Federal Reserve The Dow Jones industrial average
Chairman Ben Bernanke. slipped 19.15 points, or 0.16 per cent,
The market, which started off on a to end at 12,070.81. The Standard &
positive note after the S&P 500 hit a Poor’s 500 Index declined 1.23 points,
two-month low in the previous ses- or 0.10 per cent, to 1,284.94. The
Visit
Visit CChamberlain’s
hamberlain’s restaurant
restaurant at at 23-25
23-25 Leadenhall
Leadenhall Market,
Market, EC3V
EC3V 1LR,
1L R , sion, reversed course to turn negative Nasdaq Composite Index shed 1.00
after Bernanke started speaking. He point, or 0.04 per cent, to finish at
ccall
a ll 020 77648
020 648 8 690 o
8690 isit 1
orr vvisit 1 1|"',&#(-)Ő)()(|)'
111|"',&#(-)Ő)()(|)' acknowledged a slowdown in the 2,701.56.
economy, but offered no suggestion Volume was thin with a below-aver-
the central bank is considering any age 6.59bn shares traded.

Wealth Management Foreign Exchange
ONCE AGAIN,
THE ECB MAY
SURPRISE US
BORIS SCHLOSSBERG
DIRECTOR OF CURRENCY RESEARCH, GFT
I
N THE movie Groundhog Day, Bill Murray wakes
up each day only to find himself repeating the
activities of the day before. There is a bit of a
Groundhog Day feel to the currency market this
week, as traders once again prepare for the monthly
European Central Bank (ECB) press conference.
Recall that last month I noted that the euro would
live or die by the pronouncements of ECB President
Jean Claude Trichet – and indeed the unit tumbled
nearly 900 points off its highs at the start of May, in
the wake of Trichet’s dovish words.
This month, the market anticipates that the ECB
will turn decidedly more hawkish and Trichet will
finally signal a 25 basis point rate hike for July by
using the code word vigilance. Although the
Eurozone continues to be plagued by problems in
the periphery, the ECB’s monetary policy is geared
primarily towards the core economies of Germany
and France. To that end, economic growth in
Germany remains robust as unemployment declined
to the lowest level since the re-unification, while
retail sales led by strength in the core European
economies saw their sharpest rise in thirteen
months. Meanwhile, inflation shows no signs of eas-
ing, with PPI readings rising at a 6.7 per cent annu-
al rate.
In short, there are many good reasons to believe
that the ECB will pre-announce the tightening of
monetary policy at this Thursday’s press conference
(scheduled for 1.30pm London time). However,
given the fragility of the situation in the periphery
and the slowdown in the most recent PMI reports,
the ECB may decide to err on the side of caution
and hold off hiking rates until the autumn.
Furthermore, a rate hike now would only exacer-
bate the overvaluation of euro-dollar, pushing it
towards the $1.5000 level and making it more diffi-
cult for the export-driven German economy to
maintain growth. If the ECB does surprise the mar-
ket by remaining stationary, expect another sell off
in euro-dollar. But, given the general weakness of
the US economy, the correction this time around
may not be nearly as steep.
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writes Craig Drake
T
HE currency market’s attention has
been focused on the announce-
ments made by the US Federal
Reserve, the Bank of England and
the European Central Bank. But at the
same time, there are a large number of
traders taking advantage of the policies
of other central banks, such as the
Reserve Bank of Australia (RBA), and their
relatively high interest rates.
The RBA announced yesterday that it
would be maintaining its current rates.
The interest rate has been held at 4.75 per
cent since November last year, when the
RBA raised rates by 25 points. With the
announcement, RBA governor Glenn
Stevens said: “The current mildly restric-
tive stance of monetary policy remained
appropriate.”
While this announcement knocked
the Australian dollar, it was nevertheless
a boost to those taking advantage of
carry trades, which involve borrowing in
countries with low interest rates and
investing in nations with high interest
rates.
According to Angus Campbell, head of
sales for London Capital Group: “The
Australian dollar is a popular currency
for carry trades. An investor who buys
Australian dollar-dollar, for example,
should attract a small interest payment
each night as Australian base rates are at
4.75 per cent, whereas the Fed has held
their base rate between 0 and 0.25 per
cent for a substantial length of time,
hence the weakness in the US dollar in
the past couple of years.”
With the end of the Fed’s program of
quantitative easing in sight, most had
expected an increase in US rates, and
21
|
ANALYSIS l AUDUSD with USDCAD hedge
1.5
1
USDCAD
0.5
0 AUDUSD
-0.5
31 May 1 Jun 2 Jun 5 Jun
Shrimps and barbecues under-pin the Australian economy Picture: GETTY
with it a drop in the gains available to a relative interest rates of the paired cur-
carry trade. But according to Christopher rencies, it is prudent for traders to hedge
Beauchamp, research analyst for IG their positions. Trading Australian dollar-
Group: “It looks like traders will be able dollar outright means that a trader is
to continue benefiting from the carry constantly exposed to carry trade
trade for a while longer yet. Previously, unwinding.
markets had begun to expect a small According to George Tchetvertakov,
degree of tightening in the US in the Head of Research at Alpari UK, hedging a
third quarter, but last week’s run of bad trade on the Aussie dollar with a dollar-
data (especially the non-farm payrolls) Canadian dollar trade is prudent (see
has resulted in a shifting of opinion, with graph, above). “Going long Aussie dollar-
tightening in the fourth quarter now dollar could be complemented with an
more likely.” Beauchamp added, “if data additional trade designed to protect the
continues to disappoint then a delay in trader in case the dollar receives a strong
rate hikes until the first quarter of next bid at short notice, for example long dol-
year is not completely out of the ques- lar-Canadian dollar,” explains
tion.” Tchetvertakov. “This leg would usually
make a loss, but because Aussie dollar-
NOT SO LOONIE HEDGING dollar gain outweighs dollar-Canadian
At the same time as benefiting from the dollar loss, the strategy works.”
SPREAD BETS | CFDs | FOREX
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gftuk.com
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 22 Wealth Management | Foreign Exchange CITYA.M. 8 JUNE 2011

THE TIPSTER €1.4670-€1.4671.

Ongoing concerns over the risks to
TRICHET’S TIP the global economy as a whole and per-
haps more specifically the state of the
FOR TRADERS deficit in the US are continuing to push
dollar-Swiss franc to fresh record lows.
TRIPS EURO The pair has been trading below parity
for just over six months now, but with
the world’s largest economy still strug-
gling to gain traction, there’s no reason

A
FTER Jean-Claude Trichet sug-
gested the euro was overvalued,
euro-dollar stalled yesterday. The
euro remains sensitive to Greek
debt issues, and the periphery of Europe
remains in the spotlight. It is unlikely in
the near team euro-dollar will make an
attempt on the $1.49 May high. Traders
should begin selling into euro strength for
a medium term correction. FairFX quotes
euro-dollar at $1.4668-$1.4670.
Sterling is falling and is facing eight
consecutive poor trading days
against the euro. With concerns
that the austerity drive isn’t
pushing growth as much as we
would like, this could mean rates
stick where they are for some
time. Poor UK retail sales figures
earlier this week haven’t
helped the pound’s
cause, and with
traders buying into
gilts, this could signal
worse to come for
sterling. Capital
Spreads quotes
sterling-euro at
Forex & CFD Trading.
Worldwide.
Lost your way
to believe we’ll see a reversion any time
soon. Current IG Index price for dollar-
Swiss franc is SFr0.8333-SFr0.8335.
The flurry of interest rate policy deci-
sions from no less than nine central
banks has raised event risk significantly
for this week. The ECB is in prime focus
as expectations for hikes gather momen-
tum. All board members have been
telegraphing hawkish views but tighten-
ing into a stressed periphery seems an
obvious policy mistake. The Aussie dollar
has its own fair share of news flow
and it seems to be a little more
positive than that of the euro.
Reports from Australia over the
next couple of days are expected to No economy is an island
show gains in home loans and
employment. Add this to the ECB
decision and press conference
and the result should be
a busy couple of days
for the pair. On euro-
Australian dollar,
Alpari UK offers a
Swissie will remain a
spread of Au$1.3702-
Au$1.3703.
Philip Salter
peerless safe haven
@
As currencies compete to devalue, Switzerland has accepted
that it cannot drive its franc down, writes Philip Salter

S
INCE the financial crisis,
in the Forex market? excepting gold, the Swissie has
been the global reserve curren-
cy of choice. After failed efforts
has always outperformed. With con-
trolled national debt, a balanced
budget and sustainable growth, the
economy remains robust.” He adds:
appreciation in check by buying
falling euros. Despite legitimate wor-
ries about exporting with a strong
currency, recent data shows that

@
last year, the authorities are now sig-
nalling that businesses will have to
get used to exporting with a strong
currency. So far, so successful.
Both the euro and dollar have
been hitting historic lows against the
Swissie, with the former dropping to
SFr1.2052 last week and the latter
down to SFr0.8327 on Monday. The
dollar, which has also traditionally
Alpari research tools been a safe haven, is no longer
thought of as secure enough.
give you a better perspective. Switzerland’s loose monetary policy
and weak data, such as Friday’s US
Forex is high risk and losses can exceed your initial non-farm payrolls figures, are under-
deposit. Authorised and regulated by the FSA. MORE NEWS mining its reputation.
ONLINE Rishi Patel of Fair FX says:
“Switzerland is a victim of its own
alpari.co.uk/research www.cityam.com success. From a global perspective it
“With negative factors surrounding
many other major currencies and
global economies, it is unlikely the
position of the Swiss franc will
change soon. The Eurozone periph-
ery is not helping the situation.” As
long as the Eurozone’s only solution
to the debt crisis is to prop up its rot-
ten edges, the euro will continue to
trade weakly against the Swissie.
Last month, Switzerland’s head of
the federal department of economic
affairs, Johann Schneider-Ammann,
told business leaders they will have
to “learn to live” with – and even
“want to live” with – a strong franc.
He has clearly learnt from last year’s
SFr19.2bn loss, as Switzerland’s cen-
tral bank failed to keep currency
things are working. The Swiss econo-
my grew annually 2.4 per cent in the
first quarter, with exports up 5.7 per
cent. Also, the Swiss purchasing
managers’ index rose in May to 59.2
points from 58.4 points in April,
while retail sales in the same month
rose 7.5 per cent year-on-year.
Let’s hope Switzerland remains
successful with a strong currency.
The alternative model of competitive
devaluation, practised in the Great
Depression, benefits no country.
There is a cloud on the horizon
though: Swiss banks, and so its econ-
omy, could be drowned by the conta-
gion of a collapsing Eurozone. One
way or the other, in the 21st century,
no Swiss family is an island.

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CITYA.M. 8 JUNE 2011 Wealth Management | Foreign Exchange 23

Trichet’s words could lead to volatility

With both the Bank of England and the European Central Bank annoucing their decision on rates
tomorrow, we ask four foreign exchange experts for their views on how traders should be positioned

FOREX.COM from early May – and a similar euro-sterling IG INDEX

KATHLEEN
BROOKS
The markets have been
embracing the euro with
gusto this week. Partly
this is a response to the
weak US labour market
data for May, but it is also due to expectations
that the ECB will signal a rate rise in July when
it meets on Thursday. The hawkish rhetoric
from ECB members recently, including from
President Trichet himself, makes the use of the
phrase “strong vigilance” likely in our opinion.
The FX market is positioned for this, and euro-
dollar has jumped six big figures in two weeks.
If Trichet does utter these words then we may
see euro-dollar test $1.4900/50 – the highs
jump to £0.9000. However, when the market
seems as sure of itself as it does this week the
risk is that it is wrong. If Trichet fails to deliver
the goods then this would be a dovish signal
and we could see a sharp sell-off possibly back
to the $1.4350 prior resistance zone. The ball is
definitely in Trichet’s court so traders need to be
nimble.
We expect the BoE to be another non-event and
not to have much impact on the pound. In
terms of positioning, sterling is being moved
around by two external factors: firstly, where
the dollar is going and secondly, what the euro
is doing. We don’t expect this to change any-
time soon, but we may see some broad-based
sterling weakness if the ECB signals a further
normalisation of monetary policy next month,
which would serve to highlight the Bank of
England’s reluctance to adjust monetary policy.
is expected here but the central bank is
DAVID expected to give a clear signal that rates
JONES will be going up once again next time
around in July. The challenge here is just
Interest rate how much of this is already being factored
decisions are into the price of euro-dollar as it is hardly a
pretty boring secret. Considering that the euro has rallied
events for mar- by around 600 points against the dollar in
kets at the the last couple of weeks, maybe the strate-
moment. Much gy is to go for a contrarian play – the mar-
more weight, ket is expecting a signal that rates will go
particularly in up and is factoring it in; there is the poten-
the UK, is being given to the minutes tial for a big disappointment and maybe the
released a week or so after the meeting as euro has come far enough – the $1.4900
traders pore over them to try and figure out area was a big barrier in early May.
if the balance towards monetary policy is Once the decision is out of the way, it could
shifting. be the catalyst for some euro selling to
The ECB decision is potentially the one that come in, so placing a short sell with a sensi-
could add some volatility. Again, no change ble stop loss may be an interesting trade.

ALPARI UK The ECB is in a much more aggressive mood
JAMES HUGHES when it comes to monetary policy and it seems
that momentum is growing for yet another rate
Thursday’s rate decisions hike. The fear is that higher rates would mean a
could be some of the most greater risk of the likes of Ireland and Portugal
important in recent months, falling the same way as Greece. Like any eco-
as both economies have nomic announcement that creates volatility,
been stuck with their own many will likely wait on the sidelines. The euro
set of problems. Yesterday’s will likely be the most volatile place after the
news that the IMF are numbers. However, a lot will depend on Trichet’s
backing the UK government in their austerity press conference and whether the recent poor
measures will have been met with a sigh of readings have had a bearing on the ECB deci-
relief from Mr Osborne and his staff. This will sion. Equity markets will also be a little wary
leave the BoE with little to do. However, the ahead of any big numbers. We have already
IMF support is based on the perception that the seen a degree of calm this week ahead of the
inflation rate will move closer to the bank’s 2 per key numbers today and tomorrow. However,
cent target in the near future. Something that should we get any surprises those who waited
has been causing some interesting votes among will be far better placed. Caution is definitely the
the committee. way to play it when there is so much indecision.
CAXTON FX tomorrow, but as long as Trichet adopts his
RICHARD “strong vigilance” rhetoric, then the euro has
decent upside potential. Investors were pretty
DRIVER unperturbed by last week’s downtick in monthly
Eurozone inflation; a reflection of their confi-
Even at these very low dence that the ECB will raise rates to 1.5 per
sterling-euro levels, I cent in July. To a large extent, a July rate rise is
would not like to be long priced in, but the euro will no doubt enjoy a
of sterling. Sentiment boost from hawkish remarks from Trichet.
towards the UK econo- With the worst of the Greek debt crisis seeming-
my has gone from bad ly behind us and a resolution in sight, euro-dollar
to worse after last week’s data showed growth is remarkably targeting the $1.50 level again. I
is stalling. We can expect another poor quarterly see sterling-euro heading down towards €1.11 by
GDP figure, so a Bank of England rate rise this the end of this week, and dipping below €1.10 by
year looks very optimistic. The 0.5 per cent UK the end of the month. The appetite of Asian sov-
interest rate will definitely be kept on hold ereign buyers for the single currency seems insa-
tomorrow, particularly in the absence of the tiable and as the market shifts focus from the
recently departed MPC hawk Andrew Sentance. debt crisis back to interest differentials, this is
I’d be long on euro. The ECB won’t raise rates only going to favour the euro.

FOREX ANALYST PICKS

FOREX STRATEGIST FOREX STRATEGIST FOREX STRATEGIST
JOHN KICKLIGHTER ILYA SPIVAK JOEL KRUGER

My pick: Short Kiwi dollar-dollar, sterling-dollar and Swiss franc-yen
Expertise: Fundamental analysis with risk management
Average time frame of trades: 1 day to 1 week
Underlying fundamental themes are starting to kick in – notably risk
aversion is very early in a swell. I’ll keep an eye on risk-sensitive pairs
through the near-term (as well as expectations for US stimulus with-
drawal and Greece issues); but they are individual considerations for
now. I’m short Kiwi dollar-dollar from $0.8070 with a 100 pip stop and
first target. Sterling-dollar looks primed for a pivot break below $1.63
and Swiss franc-yen on a congestion break to reversal below ¥95.25.
My pick: Long dollar-Canadian dollar
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
Dollar-Canadian dollar positioning has argued for gains since prices complet-
ed a head and shoulders bottom chart pattern with a break above Ca$0.9667.
Prices are pulling back from support-turned-resistance at Ca$0.9818 toward
the bottom of a rising channel set from the 2 May low at Ca$0.97, which I
expect to offer a long entry opportunity to capitalise on risk aversion follow-
ing the end of QE2. Dollar-loonie has a strong inverse correlation with the
S&P 500 and a move lower in US shares ought to push the pair higher.
My pick: Long dollar-Swiss franc
Expertise: Technical analysis
Average time frame of trades: 4 weeks
The latest sharp drop to fresh record lows into the SFr0.8300s has
been quite extreme, with the market now violently oversold and in des-
perate need of a major corrective rebound at a minimum. It is not too
often that daily, weekly and monthly charts are oversold at the same
time, and in our opinion, the very bearish price action warns that a
material reversal is imminent. Position: long at SFr0.8350 for an open
objective; stop only on a daily close (10pm UK time) below SFr0.8240.

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 24 Wealth Management CITYA.M. 8 JUNE 2011

OMX Nordic
shows warm
growth in the
TRADE IN...
snow and ice
In the fourth part of our series on global
MAJOR NASDAQ OMX NORDIC LISTINGS
exchanges, Jessica Bown looks at a group
● ERICSSON
Telecommunications giant Ericsson is listed on the Stockholm
of Scandinavian exchanges on the rise
exchange. Its business segments include networks, profes-

T
sional services and multimedia, as well as the joint venture HE Nasdaq OMX Group is the
Sony Ericsson, which produces mobile phones, accessories world’s largest exchange com-
and PC-cards. The company’s turnover is 806.5m Swedish pany, listing 3,600 companies
kronor, according to figures from Nasdaq OMX. on exchanges in six different
continents.
It incorporates four Scandinavian
stock exchanges, two of which are
● NOKIA based in Stockholm, Sweden. The
Last year, the mobile phone manufacturer Nokia, which is other two are in Copenhagen in
headquartered in Finland, had a turnover of €604.5m, but Denmark and Helsinki in Finland,
last week’s profit warning indicates the pressure it is current- while there are also Nasdaq OMX
ly under from competitors. With production and research exchanges in Iceland, Tallinn, Riga
facilities, as well as sales and marketing centres, around the and Vilnius.
world, the company makes a wide range of mobile devices Well-known names listed on the
offering services including music, navigation and video. Scandinavian exchanges – known col-
lectively as Nasdaq OMX Nordic –
include telecoms giants Nokia and
Ericsson and Volvo, the car manufac-
● NOVO NORDISK turer.
Novo Nordisk is a global healthcare company with more than Perhaps unsurprisingly given all
31,300 employees in 74 countries, 44 per cent of whom are the developments in the telecoms
based in Denmark. Its main area of research is diabetes industry, Nokia and Ericsson were the
treatments. The company, which is listed in both Copenhagen most heavily-traded companies across
and New York, has a turnover of 559.4m Danish kroner the exchanges in the three countries
according to the Nasdaq OMX statistics. during 2010.
Credit Suisse shares also changed
hands a lot, probably due to the ongo-
● HENNES & MAURITZ (H&M) ing repercussions of the global finan-
The high street retailer H&M has an annual turnover of cial crisis.
These companies are far from the
560.7m Swedish kronor, according to Nasdaq OMX. The only household names that can be
company’s business concept is to provide customers with accessed via the Nasdaq OMX Nordic
high value by offering fashion and quality at a low price. It
does not manufacture the clothes it sells. It buys them from
exchanges, though.
Other notable players include the
Swedish high street fashion store
chain H&M, brewer Carlsberg and
healthcare specialist Novo Nordisk.
The latter two companies are listed
in their home country of Denmark,
where the first of the Scandinavian
exchanges to start trading – the
Copenhagen Securities Exchange –
was established in 1808.
The Stockholm Securities Exchange
came next in 1863, while the Helsinki
Securities Exchange – the modern day
version of which is now home to
Nokia – was not opened until more
than a century later in 1912.
Trading in options and futures
started in Copenhagen in 1988, while Nasdaq then acquired OMX the
electronic trading reached Stockholm next year, forming the Nasdaq OMX
and Helsinki in 1990. Group that exists today and has
However, despite various alliances achieved significant growth in recent
between the Scandinavian markets in times.
the 1990s, it was not until 2003 that In 2010, for example, the average
they began to really come together via daily share trading amounted to
the merger of OM and Hex Group to €2.5bn, up from €2.2bn in 2009, while
form OMHEX, later OMX. the number of share trades hit
The Copenhagen Stock Exchange 285,000 per day, up from 214,000 the
joined the group in 2005 and the previous year.
OMX Nordic Exchange brand – incor- Total derivatives trading also rose
porating Stockholm, Helsinki and by a massive 37 per cent, from
Copenhagen – was first used in 2006. 400,000 contracts per day in 2009 to

Fall and rise of the Oslo Børs

independent suppliers located primarily in Asia and Europe
before selling them from stores that are rented rather than
owned by the company.

First World War, however, the stock Following the occupation of

Easing regulation helped revive
...OF THE GLOBE the exchange, says Jessica Bown
market in Norway boomed.
New companies sprang up, every-
one wanted to buy shares and prices
Norway in 1940, the stock exchange
in Oslo was also affected by restric-
tions, while further regulation was
climbed ever higher – the estab- also necessary in the years following
24/7 online equities trading lished broking firms could scarcely the war due to Norway’s economic

18 international markets
26 exchanges
If you are unsure about investing
in international equities, please
seek independent advice.
Shares can fall in value and
you may get back less
than you invested.
Overseas investments
may lose value due
to currency
fluctuations.
This is an advertisement. Barclays Stockbrokers is the group name for the
business of Barclays Stockbrokers Limited, a member of the London Stock
Exchange and PLUS. Registered No. 1986161. Barclays Sharedealing,
Registered No. 2092410. Barclays Bank Trust Company Limited,
T
HE Oslo Stock Exchange, also
known as the Oslo Børs, offers
investors access to a range of
products including equities,
derivatives and fixed income instru-
ments.
Owned by Oslo Børs VPS Holding,
it lists a number of global players
and is of particular interest to
investors keen on the energy, ship-
ping and seafood sectors.
A lot has changed since 1819, TOP FIVE OSLO BØRS-LISTED COMPANIES BY MARKET CAPITALISATION
when the first exchange in Norway Ticker
opened two mornings a week in the Symbol
centre of Christiania, as the capital
city was then known. STL
Things did not happen fast.
Trading in stocks and shares didn’t TEL
really start until March 1881, while
trading in commodities such as DNBNOR
sugar and herring oil only achieved
significant volume at the start of the SDRL
1900s.
During and immediately after the NHY
cope. Unfortunately, this boom weakness.
ended in a crisis just a few short Regulation of the economy gradu-
years later. ally eased, though, and the
Then came the Wall Street crash of Norwegian securities market has
29 October 1929, which caused the shown very healthy growth since the
worst global depression in modern middle of the 1980s.
history and helped to pull the Oslo Other developments since then
Stock Exchange turnover down from include the start of derivatives trad-
207m Norwegian kroner in 1919 to ing in 1990 and a move to electronic
just 4m kroner in 1932. trading in 1999. More recently, in
2009, the Oslo Stock Exchange also
entered into a strategic partnership
Company Market Market Cap with the London Stock Exchange.
NOK million Oslo Stock Exchange chief execu-
tive Bente Landsnes said: “Our busi-
Statoil Oslo 430.64 ness is characterised by increased
competition and we must continue
Telenor Oslo 144.45 to change ourselves to maintain our
competitiveness.”
DnB Nor Oslo 130.63 Next week: the fifth part of our series on
global exchanges will continue with a look
Seadrill Oslo 86.65 at the Nasdaq – measured by market cap-
italisation, the second-largest exchange in
Norsk Hydro Oslo 84.59 the world.
CITYA.M. 8 JUNE 2011 Global Exchanges: Scandinavia 25 x

Not feeling the

economic chill

Picture: GETTY

...MORE CORNERS...

NASDAQ OMX NORDIC: FACTS AND FIGURES

ANALYSIS l OMX Nordic 40 index over the last three years 546,000 contracts in 2010.
This is much stronger growth than
most other world markets managed
during the same timeframe.
1,000
Executive vice president of Nasdaq
OMX Nordic Hans-Ole Jochumsen
said: “The year 2010 was very strong
for the Nordic markets.
800
“Our indexes increased by 26 per
cent in Stockholm, 33 per cent in
600 Baseline: 1,000 (28/12/2001) Copenhagen and 23 per cent in
Source: ADVFN.com Helsinki, compared with an average
increase of 4 per cent in European
Jan 09 Jul 09 Jan 10 Jul 10 Jan 11
markets and an average global
AN INNOVATIVE REGION THAT BRIMS
increase of 12 per cent.”
The most recent figures released by
Nasdaq OMX Nordic also tell the
same tale, with the total market capi-
talisation of companies listed on the
Scandinavian exchanges jumping
from €668bn in May 2010 to €809bn
last month.
One reason for this is that Nasdaq
OMX Nordic reduced costs for those
trading on its exchanges by 20 per
cent last year, thanks to the introduc-
tion of faster systems and caps on
fees.
● LOCATIONS
6 Nikolaj Plads, Copenhagen, Denmark
14 Fabianinkatu, Helsinki, Finland
15 Tullvaktsvagen, Stockholm, Sweden
● OPENING AND CLOSING TIMES [LOCAL TIME]
Copenhagen:
9am open; 5pm close
[8am-4pm London time]
Helsinki:
10am open; 6.30pm close
[8am-4.30 pm London time]
Stockholm:
9am open; 5.30pm close
[8am-4.30pm London time]
● MARKET CLOSURES
Copenhagen:
April 21, 22, 25, May 20, June 2, 3, 13, December 26
Helsinki:
January 6, April 22, 25, June 2, 24, December 6, 26
Stockholm:
January 6, April 22, 24, June 2, 6, 24, December 12
● CURRENCY
Copenhagen: Danish krone
Helsinki: Euro
Stockholm: Swedish krona
● NUMBER OF LISTINGS
About 650 main market listings
● VOLUME
€2,187,276 (Nasdaq OMX Nordic)
● MARKET CAPITALISATION
€809bn
(All Nasdaq OMX Nordic markets, at end of May 2011.)

WITH INVESTMENT OPPORTUNITIES

nies has increased by 14 per cent each of Petroleum and Energy. Last year, it
year, telling you something about the was ranked the largest company in
economic growth of the region. the Nordic region by market cap-
The national domestic product of italisation, profit and revenue.
Sweden, Finland, Denmark and Norway It has operations in both Search online for Barclays Stockbrokers
recently reached a combined total of Scandinavia and abroad, as
€17bn – not an amount to sniff at. well as a fleet of 2,000 International Trader
PAUL INKSTER SWEDISH RETURNS
petrol stations across the
region.
HEAD OF PRODUCT, In 2010, Sweden was the best perform- If you want to deal
BARCLAYS STOCKBROKERS ing European market. Some well-known GLOBAL REACH
companies, including Volvo, also achieved A little research can go a on the world stage,

S
CANDINAVIA is a region known for impressive returns for investors. The long way and there are plen- International Trader
its innovation and is home to plenty best performing Swedish stock of 2010 ty of opportunities for
of well-known technology and ener- was Lundin Petroleum, an oil company investors interested in Northern can take you there.
gy companies. Although the Nordics traded on the Stockholm Stock Europe. The rest of the area is
are often overlooked, its laws and regula- Exchange. home to some world-famous
tions are encouraging to investors and names. For Finland – Nokia –
the region proposes some interesting NORWAY’S ENERGY for Sweden – Ikea and
investment opportunities. One of the best-known Ericsson – and for
Norwegian companies is Denmark –
REGIONAL GROWTH Statoil, the world’s Carlsberg.
Sweden, Norway, Denmark and Finland – 13th-largest oil and
all four markets belong to the OMX gas company. Statoil
exchange, which over the last 10 years is majority govern- Registered No. 920880. All companies are registered in England at
has seen its list of companies grow by 1 ment-owned and is 1 Churchill Place, London, EH14 5HP; the registered VAT No. is 243 8522 62.
per cent. However, during that period, managed by the All companies are authorised and regulated by the Financial Services
Authority.
the capitalisation of those listed compa- Norwegian Ministry
 26 Wealth Management | Markets CITYA.M. 8 JUNE 2011

FTSE 100 FTSE 250 FTSE ALLSHARE DOW NASDAQ S&P 500 / 1.1200 0.0036 /$ 1.4683 0.0105
5864.65 12008.79 3064.03 12070.81 2701.56 1284.94 /$ 1.6443 0.0088 /£ 0.8930 0.0016
1.49 11.86 1.29 -19.15 -1.00 -1.23 /¥ 131.78 0.7656 /¥ 117.69 0.9410
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 . . . . .225.5 1.4 240.5 112.7 Brewin Dolphin Ho . .158.9 -1.1 185.4 114.0 Rexam . . . . . . . . . . . .395.5 4.2 400.0 290.4 Amlin . . . . . . . . . . . . .425.0 2.9 433.0 369.3 Centamin Egypt Lt . .124.5 0.5 197.1 115.8 Hammerson . . . . . . . .481.0 0.1 486.3 336.3 JD Wetherspoon . . . .439.0 1.9 468.3 386.5
CONSTRUCTION & MATERIALS Camellia . . . . . . . . .10813.0 413.010850.0 7410.0 RPC Group . . . . . . . .341.8 -3.2 361.1 192.3 Beazley . . . . . . . . . . . .130.0 0.4 139.2 109.1 Eurasian Natural . . .819.5 1.0 1125.0 806.5 Hansteen Holdings . . .86.3 0.5 89.3 59.4 Ladbrokes . . . . . . . . .147.6 -0.2 152.2 122.7
Tsy 9.000 11 . . . . .100.79 -0.03 109.2 100.8 Charles Taylor Co . . .131.4 -5.6 240.0 122.0 Smiths Group . . . . .1201.0 -22.0 1429.0 1018.0 Catlin Group Ltd. . . .421.4 1.5 422.8 319.9 Fresnillo . . . . . . . . . .1427.0 -1.0 1682.0 897.5 Land Securities G . . .842.0 -3.0 846.5 545.0 Marston's . . . . . . . . . .105.5 0.1 117.1 90.4
Tsy 2.500 11 . . . . .307.68 0.00 310.0 307.7 Balfour Beatty . . . . . .306.7 1.7 357.3 229.8 City of London Gr . . . .85.0 0.0 93.6 65.8 Hiscox Ltd. . . . . . . . . .420.3 -2.2 426.1 335.5 Gem Diamonds Ltd. .270.0 -1.5 306.0 186.3 SEGRO . . . . . . . . . . . .326.1 0.3 331.3 250.2 Millennium & Copt . .513.0 -1.0 600.5 392.0
Tsy 3.250 11 . . . . .101.38 -0.03 103.8 101.4 Keller Group . . . . . . .520.5 -3.5 698.5 513.0 City of London In . . .431.5 1.3 461.5 273.5 GENERAL RETAILERS Jardine Lloyd Tho . . .685.5 0.0 709.0 521.5 Hochschild Mining . .488.5 -11.5 680.0 280.0 Shaftesbury . . . . . . . .539.0 2.0 543.0 349.3 Mitchells & Butle . . . .331.9 12.0 361.0 274.0
Tsy 9.000 12 . . . .109.44 0.00 116.9 108.6 Kier Group . . . . . . . .1300.0 1.0 1418.0 886.5 Close Brothers Gr . . .790.5 0.5 888.5 664.0 Brown (N.) Group . . .276.0 -3.7 311.2 221.0 Lancashire Holdin . . .652.5 -2.0 656.5 480.0 Kazakhmys . . . . . . .1271.0 -7.0 1671.0 965.0 National Express . . .254.7 -1.3 270.2 213.4
Tsy 5.000 12 . . . .103.28 -0.05 107.3 103.2 Collins Stewart H . . . .80.8 0.5 90.8 67.3 Carpetright . . . . . . . . .739.0 7.0 835.5 631.0 RSA Insurance Gro . .137.4 0.6 143.5 117.3 Kenmare Resources . .46.7 -0.3 50.3 11.5 SOFTWARE & COMPUTER SERV. Punch Taverns . . . . . .70.2 0.2 90.4 58.0
Tsy 5.250 12 . . . .104.51 -0.05 108.5 104.5 ELECTRICITY
Evolution Group . . . . .67.8 -0.3 98.0 67.0 Debenhams . . . . . . . . .70.4 0.1 77.4 53.0 LIFE INSURANCE Lonmin . . . . . . . . . . .1571.0 -4.0 1983.0 1355.0 Autonomy Corporat 1806.0 -9.0 1975.0 1271.0 Rank Group . . . . . . . .151.6 0.4 153.8 94.8
Tsy 4.500 13 . . . .106.25 -0.03 109.2 105.8 Drax Group . . . . . . . .481.8 4.1 487.0 333.2 F&C Asset Managem .79.0 1.4 92.9 47.5 Dignity . . . . . . . . . . . .785.0 16.0 799.5 623.5 Petropavlovsk . . . . . .762.5 19.5 1365.0 720.5 Aveva Group . . . . . .1720.0 -9.0 1739.0 1125.0 Restaurant Group . . .298.2 -0.1 335.0 208.2
Tsy 2.500 13 . . . .286.48 0.05 286.5 274.0 Scottish & Southe . .1391.0 20.0 1402.0 1062.0 Hargreaves Lansdo .640.0 0.0 646.5 317.4 Dixons Retail . . . . . . .19.4 0.7 28.5 11.8 Aviva . . . . . . . . . . . . . .429.6 3.6 477.9 305.8 Randgold Resource 4898.0 -69.0 6655.0 4425.0 Computacenter . . . . .468.9 6.2 489.7 260.0 Stagecoach Group . .247.6 -2.2 251.9 160.7
Tsy 8.000 13 . . . . .115.83 -0.12 121.3 115.8 Helphire Group . . . . . . .3.7 -0.2 45.0 3.3 Dunelm Group . . . . . .458.0 -3.0 550.0 325.3 Legal & General G . . .115.6 2.0 123.8 75.6 Rio Tinto . . . . . . . . .4199.0 51.0 4712.0 2880.5 Fidessa Group . . . . .1971.0 30.0 1971.0 1300.0 Thomas Cook Group 144.2 1.1 205.5 142.7
Tsy 5.000 14 . . . . .111.00 -0.05 114.1 109.2 ELECTRONIC & ELECTRICAL EQ.
Henderson Group . . .145.0 -1.3 173.1 118.1 Halfords Group . . . . .401.7 -3.3 550.0 348.2 Old Mutual . . . . . . . . .128.7 0.5 145.2 102.0 Vedanta Resources 2080.0 22.0 2583.0 1839.0 Invensys . . . . . . . . . . .303.0 -4.8 364.3 230.2 TUI Travel . . . . . . . . . .225.3 0.3 271.9 190.0
Tsy 4.750 15 . . . . .111.59 -0.10 114.7 108.6 Domino Printing S . .670.5 5.5 705.0 386.0 Highway Capital . . . . .17.0 0.0 21.0 6.0 Home Retail Group . .208.5 -3.3 244.5 188.5 Phoenix Group Hol . .662.0 2.0 758.0 584.5 Xstrata . . . . . . . . . . .1370.5 15.0 1550.0 845.8 Kofax . . . . . . . . . . . . .488.0 17.8 535.0 231.0 Whitbread . . . . . . . .1552.0 -29.0 1887.0 1344.0
Tsy 7.750 15 . . . .104.40 -0.41 111.0 76.0 Halma . . . . . . . . . . . . .393.2 -2.4 400.3 249.4 ICAP . . . . . . . . . . . . . .472.5 1.8 570.5 380.2 Inchcape . . . . . . . . . .389.6 1.1 414.0 237.1 Prudential . . . . . . . . .720.0 4.0 777.0 489.2 Logica . . . . . . . . . . . .132.5 0.0 147.2 101.7 William Hill . . . . . . . . .217.0 1.5 223.5 155.5
Tsy 8.000 15 . . . .126.10 -0.11 131.6 123.7 MOBILE TELECOMS
Laird . . . . . . . . . . . . . .134.0 -5.7 179.0 98.8 IG Group Holdings . .444.9 -0.1 553.0 392.2 JD Sports Fashion .1000.0 23.0 1005.0 683.0 Resolution Ltd. . . . . .308.3 8.4 312.6 211.3 Micro Focus Inter . . .377.7 -0.9 541.5 276.0
Tsy 4.000 16 . . . .108.69 -0.16 111.4 104.9 AIM 50
Morgan Crucible C . .304.0 -1.6 333.0 173.5 Intermediate Capi . . .330.4 0.8 360.3 240.4 Kesa Electricals . . . .144.1 -0.9 174.0 99.2 St James's Place . . . .340.3 -0.5 360.4 204.2 Inmarsat . . . . . . . . . . .602.0 1.5 821.0 575.0 Misys . . . . . . . . . . . . .378.8 -3.5 384.9 227.0
Tsy 2.500 16 . . . .330.20 0.13 330.5 304.4 Renishaw . . . . . . . . .1717.0 -59.0 1819.0 683.0 International Per . . . .375.7 0.1 386.6 183.3 Kingfisher . . . . . . . . .278.1 -0.4 287.1 198.5 Standard Life . . . . . . .206.2 2.6 244.7 173.0 Vodafone Group . . . .163.4 -0.3 181.9 135.4 Sage Group . . . . . . . .288.2 -1.6 302.0 222.7 Abcam . . . . . . . . . . . .423.3 0.3 428.8 237.4
Tsy 8.750 17 . . . .136.20 -0.60 142.2 132.9 Spectris . . . . . . . . . .1533.0 -6.0 1575.0 740.5 International Pub . . . .116.8 0.0 118.3 108.6 Marks & Spencer G . .378.5 -1.7 427.5 327.2 SDL . . . . . . . . . . . . . . .710.5 10.0 710.5 441.2 Albemarle & Bond . .332.4 -2.6 335.0 218.0
Tsy 12.000 17 . . .126.73 0.00 185.9 126.0 Investec . . . . . . . . . . .506.5 0.5 538.0 429.2 Mothercare . . . . . . . .420.8 -4.1 627.5 382.0 MEDIA NONEQUITY INVESTM. COMM. Telecity Group . . . . . .542.0 2.5 548.5 374.0 Amerisur Resource . .26.3 0.5 29.0 11.5
Tsy 1.250 17 . . . . .110.87 -0.09 111.1 104.9 EQUITY INVESTMENT INSTRUM.
IP Group . . . . . . . . . . . .52.6 -0.1 53.8 27.9 Next . . . . . . . . . . . . .2272.0 -3.0 2326.0 1868.0 4imprint Group . . . . .284.0 13.5 284.0 195.0 Genesis Emerging . .527.0 -1.0 568.0 433.3 Archipelago Resou . . .62.5 0.0 66.8 32.3
Tsy 5.000 18 . . . . .114.13 -0.29 117.6 109.7 Aberforth Smaller . . .713.0 6.0 713.0 498.0 Jupiter Fund Mana . .284.7 1.3 337.3 180.3 Sports Direct Int . . . .227.7 6.7 234.1 94.2 Aegis Group . . . . . . .150.2 -0.8 153.4 103.6 SUPPORT SERVICES ASOS . . . . . . . . . . . .2317.0 19.0 2432.0 632.5
Tsy 4.500 19 . . . . .110.23 -0.34 113.8 105.4 OIL & GAS PRODUCERS
Alliance Trust . . . . . .377.0 0.6 385.0 293.5 LMS Capital . . . . . . . . .63.8 0.5 64.8 40.0 WH Smith . . . . . . . . . .484.1 1.8 523.0 398.2 Bloomsbury Publis . .126.0 -0.5 138.0 108.5 Aggreko . . . . . . . . . .1909.0 5.0 1913.0 1346.0 Aurelian Oil & Ga . . . .53.5 2.3 92.0 35.8
Tsy 3.750 19 . . . .104.42 -0.38 107.7 99.4 Bankers Inv Trust . . .422.0 -3.0 428.0 337.0 London Finance & . . .23.5 0.0 23.5 16.5 British Sky Broad . . .834.5 -0.5 849.0 563.5 Afren . . . . . . . . . . . . . .164.0 -0.6 171.2 79.2 Ashtead Group . . . . .176.0 5.8 207.9 77.0 Avanti Communicat .419.0 -12.8 735.0 376.0
Tsy 2.500 20 . . . .336.14 -0.13 337.4 303.8 HEALTH CARE EQUIPMENT & S.
BH Global Ltd. GB .1097.0 -1.0 1174.0 1058.0 London Stock Exch .960.0 -8.5 990.0 544.0 Centaur Media . . . . . . .54.9 0.1 73.0 45.8 BG Group . . . . . . . . .1365.0 14.0 1564.5 1002.0 Atkins (WS) . . . . . . . .820.0 2.0 825.0 650.0 Avocet Mining . . . . . .196.0 -1.8 253.5 112.0
Tsy 4.750 20 . . . . .111.57 -0.44 115.9 106.6 BH Global Ltd. US . . . .10.8 -0.0 11.6 10.4 Man Group . . . . . . . . .248.6 -1.2 311.0 206.4 Smith & Nephew . . . .662.5 -5.5 742.0 537.5 Chime Communicati .278.5 1.0 298.5 158.0 BP . . . . . . . . . . . . . . . .448.2 -2.8 509.0 302.9 Babcock Internati . . .694.0 -3.5 704.5 492.8 Blinkx . . . . . . . . . . . . .135.0 -0.5 148.8 33.5
Tsy 8.000 21 . . . .139.81 -0.43 147.1 133.8 BH Macro Ltd. EUR . . .17.0 0.0 17.2 15.8 Paragon Group Of . .204.5 -1.0 206.1 114.4 Synergy Health . . . . .925.0 45.0 948.0 607.0 Creston . . . . . . . . . . .121.0 3.5 121.5 78.5 Cairn Energy . . . . . . .427.5 -1.9 493.2 366.0 Berendsen . . . . . . . . .499.6 4.8 519.5 360.2 Borders & Souther . . .55.8 1.0 93.0 54.3
Tsy 1.875 22 . . . . .116.26 -0.25 117.8 108.5 BH Macro Ltd. GBP 1753.0 -5.0 1780.0 1630.0 Provident Financi . . .974.0 -3.5 1033.0 728.5 Daily Mail and Ge . . .444.3 0.3 594.5 433.0 EnQuest . . . . . . . . . . .130.8 -2.0 158.5 96.0 Bunzl . . . . . . . . . . . . .778.5 -3.5 783.0 658.0 BowLeven . . . . . . . . .296.8 -3.8 398.0 117.0
Tsy 4.000 22 . . . .103.96 -0.53 108.4 99.0 BH Macro Ltd. USD . . .16.9 -0.0 17.1 15.8 Rathbone Brothers .1193.0 5.0 1257.0 762.5 HHOLD GDS & HOME CONSTR. Euromoney Institu . .678.5 18.5 736.0 562.5 Essar Energy . . . . . .434.5 -3.9 589.5 387.1 Capita Group . . . . . . .737.5 -3.0 810.0 635.5 Caledon Resources .105.0 0.5 107.0 23.3
Tsy 2.500 24 . . . .294.48 -0.10 295.8 262.1 BlackRock World M .761.5 -4.5 815.5 533.0 Real Estate Credi . . . . .1.4 0.0 2.4 0.9 Barratt Developme . .108.2 -1.2 119.0 70.1 Future . . . . . . . . . . . . . .18.5 0.5 30.0 15.8 Exillon Energy . . . . . .453.0 0.1 469.7 166.5 Carillion . . . . . . . . . . .374.0 -1.0 403.2 291.2 Cape . . . . . . . . . . . . . .558.5 -8.5 571.0 190.5
Tsy 5.000 25 . . . . .112.61 -0.66 118.5 107.4 BlueCrest AllBlue . . .175.0 0.1 176.2 161.6 RSM Tenon Group . . .25.0 -0.3 66.3 21.3 Heritage Oil . . . . . . . .241.0 -2.5 486.0 227.8 De La Rue . . . . . . . . .785.5 0.5 984.0 549.5 Conygar Investmen .116.5 -0.3 120.0 101.3
Tsy 4.250 27 . . . .102.79 -0.76 108.8 97.9 British Assets Tr . . . .137.9 1.7 140.5 105.0 S & U . . . . . . . . . . . . .637.5 0.0 708.5 482.5 JKX Oil & Gas . . . . . .292.6 -2.4 335.1 228.0 Electrocomponents .294.5 1.0 298.0 205.7 Cove Energy . . . . . . . .80.3 -1.5 112.8 47.5
Tsy 1.250 27 . . . .109.54
Tsy 6.000 28 . . . .124.89
-0.22
-0.75
111.2
132.7
100.5
119.5
British Empire Se . . .533.0
Caledonia Investm .1779.0
3.0
10.0
533.0 404.1
1928.0 1539.0
Schroders . . . . . . . .1597.0 3.0 1922.0 1154.0
Schroders (Non-Vo .1331.0 7.0 1554.0 950.5
MAIN CHANGES UK 350 Premier Oil . . . . . . . . .480.2 -2.2
Royal Dutch Shell . .2123.5 -14.5
535.0 283.3
2326.5 1624.0
Experian . . . . . . . . . . .786.5 1.0
Filtrona PLC . . . . . . . .371.5 -0.7
819.0 578.0
385.5 193.8
Daisy Group . . . . . . .104.0 3.0
Desire Petroleum . . . .21.0 5.0
108.5
168.5
86.0
11.3
Tsy 4.750 30 . . . .108.34 -0.82 115.0 103.0 City of London In . . .301.0 1.0 303.2 235.0 Tullett Prebon . . . . . .370.8 1.7 428.6 307.5 Royal Dutch Shell . .2132.5 -11.0 2336.0 1554.0 G4S . . . . . . . . . . . . . . .288.5 0.5 291.0 237.7 EMIS Group . . . . . . . .550.0 5.0 555.5 303.5
Tsy 4.125 30 . . . .279.20 -0.05 280.4 248.7 Dexion Absolute L . .148.0 0.0 151.0 131.2 Walker Crips Grou . . .49.0 0.0 50.0 45.0
Risers % Fallers %
Salamander Energy .278.6 -1.4 317.6 210.0 Hays . . . . . . . . . . . . . .106.9 0.0 133.6 88.4 Encore Oil . . . . . . . . . .61.5 -0.8 151.5 28.5
Tsy 4.250 32 . . . .101.37 -0.87 107.8 96.0 Edinburgh Dragon . .242.8 0.0 262.1 201.1 Moneysupermarket.c 107.3 5.7 Laird . . . . . . . . . . . . . .134.0 -4.1 Soco Internationa . . .388.0 0.3 484.2 292.0 Homeserve . . . . . . . .525.5 5.5 532.0 398.6 Faroe Petroleum . . . .172.0 5.0 218.3 113.5
Tsy 4.250 36 . . . .100.72 -0.99 107.4 95.0 FIXED LINE TELECOMS
Edinburgh Inv Tru . . .487.9 2.9 492.2 372.2 Synergy Health . . . . .925.0 5.1 Renishaw . . . . . . . . .1717.0 -3.3 Tullow Oil . . . . . . . . .1310.0 -7.0 1493.0 991.5 Howden Joinery Gr . .108.4 -1.3 127.5 56.8 Gulfsands Petrole . . .252.8 -11.5 401.5 234.8
Tsy 4.750 38 . . . .109.18 -1.03 116.5 102.8 Electra Private E . . .1733.0 -3.0 1755.0 1177.0 BT Group . . . . . . . . . .197.6 0.4 201.9 125.6 Intertek Group . . . . .1990.0 -24.0 2148.0 1379.0 GW Pharmaceutical .121.0 -2.8 141.0 83.0
Tsy 4.500 42 . . . .105.44 0.00 112.8 98.9 Ferrexpo . . . . . . . . . .470.7 4.2 SThree . . . . . . . . . . . .393.4 -2.9 OIL EQUIPMENT & SERVICES
F&C Inv Trust . . . . . .313.8 -0.4 317.5 251.4 Cable & Wireless . . . .41.8 -0.2 62.4 41.6 Kofax . . . . . . . . . . . . .488.0 3.8 Hochschild Mining . .488.5 -2.3 Michael Page Inte . . .543.0 3.5 567.0 349.4 Hamworthy . . . . . . . .637.0 72.0 645.0 292.5
Fidelity China Sp . . . .102.4 0.4 128.7 96.1 Cable & Wireless . . . .55.0 0.1 92.0 46.6 Mitchells & Butler . . .331.9 3.8 Whitbread . . . . . . . .1552.0 -1.8 Amec . . . . . . . . . . . .1109.0 -18.0 1251.0 805.5 Mitie Group . . . . . . . .230.2 -1.7 241.1 188.7 Hargreaves Servic .1005.0 0.0 1040.0 556.5
ALTERNATIVE ENERGY Fidelity European . .1270.0 9.0 1287.0 916.0 COLT Group SA . . . .145.8 0.3 156.2 109.0 Hunting . . . . . . . . . . .749.0 -8.0 817.0 439.4 Premier Farnell . . . . .287.1 -1.1 308.8 210.2 Healthcare Locums . .112.5 0.0 112.5 112.5
Glencore Internat . . .520.2 5.2 531.1 505.0 Fidelity Special . . . . .574.0 1.5 595.0 503.0 TalkTalk Telecom . . .149.3 1.0 168.3 114.3 Dixons Retail . . . . . . .19.4 3.5 Smiths Group . . . . .1201.0 -1.8 John Wood Group . .638.0 3.5 706.0 293.1 Regus . . . . . . . . . . . . .111.1 -0.3 119.0 66.1 Immunodiagnostic . .950.0 10.0 980.0 575.0
Herald Inv Trust . . . . .525.0 3.0 541.0 350.5 Telecom Plus . . . . . . .596.0 11.0 600.0 327.0 Ashtead Group . . . . .176.0 3.4 Imagination Techno .492.0 -1.8 Lamprell . . . . . . . . . . .391.5 1.5 400.9 195.3 Rentokil Initial . . . . . . .98.0 0.1 121.7 84.3 Impellam Group . . . .376.3 -6.4 387.5 73.0
AEROSPACE & DEFENCE HICL Infrastructu . . . .118.1 -0.1 121.3 112.0 Avis Europe . . . . . . . .197.0 3.1 Reed Elsevier . . . . . .546.0 -1.8 Petrofac Ltd. . . . . . .1544.0 -18.0 1685.0 1141.0 RPS Group . . . . . . . . .241.0 1.4 251.4 169.8 James Halstead . . . . .448.0 8.0 485.0 306.0
BAE Systems . . . . . .323.2 -1.0 369.9 294.7 Impax Environment .121.7 1.2 130.5 106.5 FOOD & DRUG RETAILERS Sports Direct Inte . . .227.7 3.0 Redrow . . . . . . . . . . . .117.0 -1.7 Serco Group . . . . . . .584.0 -2.5 640.0 529.5 Kalahari Minerals . . .232.0 2.0 301.0 142.0
PERSONAL GOODS
Chemring Group . . . .677.0 2.5 736.5 519.6 JPMorgan American .860.0 0.5 909.0 673.0 Booker Group . . . . . . .69.7 -0.1 70.5 39.5 Anglo Pacific Grou . .309.0 3.0 Talvivaara Mining . . .470.0 -1.7 Shanks Group . . . . . .129.5 0.3 130.0 96.5 London Mining . . . . .387.5 2.5 436.5 194.0
Cobham . . . . . . . . . . .223.6 -1.1 247.6 192.3 JPMorgan Asian In . .235.5 0.0 250.8 187.0 Greggs . . . . . . . . . . . .542.0 6.5 545.5 418.7 Burberry Group . . . .1312.0 5.0 1365.0 724.5 SIG . . . . . . . . . . . . . . .147.3 -0.9 153.5 90.7 Lupus Capital . . . . . .117.0 -2.0 150.0 72.0
Meggitt . . . . . . . . . . . .364.6 -1.4 380.9 261.7 JPMorgan Emerging .588.0 2.5 639.0 479.5 Morrison (Wm) Sup .299.4 -1.6 308.3 257.7 Price Chg High Low Price Chg High Low PZ Cussons . . . . . . . .387.9 2.9 409.0 293.9 SThree . . . . . . . . . . . .393.4 -11.6 447.6 231.1 M. P. Evans Group . .419.9 4.9 500.5 317.5
QinetiQ Group . . . . . .119.3 2.5 136.3 96.7 JPMorgan European .939.0 8.5 983.5 614.0 Ocado Group . . . . . . .228.2 3.2 285.0 123.5 Supergroup . . . . . . . .979.5 10.5 1820.0 620.0 Travis Perkins . . . . .1056.0 -10.0 1127.0 709.0 Majestic Wine . . . . . .440.0 -1.0 445.3 268.0
Rolls-Royce Group . .621.0 -6.5 665.0 535.0 JPMorgan Indian I . . .420.1 4.1 502.0 393.0 Sainsbury (J) . . . . . . .336.7 -2.6 395.0 317.2 Bellway . . . . . . . . . . . .713.0 -6.0 753.5 511.0 Haynes Publishing . .247.5 0.0 262.5 202.5 AstraZeneca . . . . . .3176.0 22.5 3385.0 2801.5 Wolseley . . . . . . . . .1930.0 16.0 2261.0 1223.0 May Gurney Integr . .269.0 -6.0 281.0 177.0
Senior . . . . . . . . . . . . .153.0 0.3 159.5 111.2 JPMorgan Russian .661.5 2.5 755.0 502.0 Tesco . . . . . . . . . . . . .412.0 -5.5 440.7 377.5 Berkeley Group Ho .1106.0 -8.0 1156.0 751.0 Huntsworth . . . . . . . . .74.5 1.3 87.5 65.0 PHARMACEUTICALS & BIOTECH Monitise . . . . . . . . . . . .27.3 -0.5 29.5 17.8
Law Debenture Cor . .369.9 4.0 372.4 273.3 TECHNOLOGY HARDW. & EQUIP. Mulberry Group . . . .1290.0 -57.0 1610.0 200.5
Ultra Electronics . . .1678.0 -17.0 1895.0 1522.0 Bovis Homes Group .433.0 -1.0 464.7 326.6 Informa . . . . . . . . . . . .428.6 1.3 461.1 342.1
Mercantile Inv Tr . . .1090.0 3.0 1137.0 840.0 FOOD PRODUCERS BTG . . . . . . . . . . . . . .282.5 2.5 285.6 180.0 ARM Holdings . . . . . .574.0 -7.5 651.0 264.3 Nanoco Group . . . . . . .75.3 -1.8 115.8 68.0
AUTOMOBILES & PARTS Persimmon . . . . . . . .459.0 -4.3 502.5 336.5 ITE Group . . . . . . . . . .247.8 1.1 258.2 136.2
Merchants Trust . . . .427.7 -2.2 431.8 320.0 Associated Britis . .1069.0 -5.0 1182.0 940.0 Reckitt Benckiser . .3465.0 37.0 3648.0 3015.0 ITV . . . . . . . . . . . . . . . . .68.4 -0.7 93.5 48.3 Genus . . . . . . . . . . . .1046.0 28.0 1047.0 704.5 CSR . . . . . . . . . . . . . .333.5 -3.7 447.0 280.9 Nautical Petroleu . . .339.0 -3.5 547.0 112.5
GKN . . . . . . . . . . . . . .213.4 -0.5 237.1 109.3 Monks Inv Trust . . . .355.5 -0.6 367.9 275.5 Cranswick . . . . . . . . .785.0 -5.0 907.5 735.0 Redrow . . . . . . . . . . . .117.0 -2.0 139.0 97.5 Johnston Press . . . . . . .5.3 -0.7 20.0 4.6 GlaxoSmithKline . . .1305.5 4.5 1348.5 1095.0 Imagination Techn . .492.0 -9.0 509.0 235.0 Nichols . . . . . . . . . . . .572.8 -5.3 590.0 370.0
Murray Income Tru . .668.0 5.0 672.0 518.0 Dairy Crest Group . . .393.0 0.5 424.9 339.7 Taylor Wimpey . . . . . . .35.9 0.2 43.3 22.3 Mecom Group . . . . . .249.0 -1.8 310.0 162.0 Hikma Pharmaceuti .869.0 1.5 900.0 674.5 Pace . . . . . . . . . . . . . .111.0 -1.3 231.8 93.0 Numis Corporation . .105.6 -3.9 146.5 94.0
BANKS Murray Internatio . . .958.5 4.5 966.0 803.0 Devro . . . . . . . . . . . . .286.4 6.4 296.9 174.0 Shire Plc . . . . . . . . . .1895.0 1.0 1961.0 1341.0 Spirent Communica .148.8 -1.4 160.3 104.5 Patagonia Gold . . . . . .41.0 -2.0 59.3 12.5
Moneysupermarket. .107.3 5.8 107.4 64.6
Barclays . . . . . . . . . . .262.6 -1.5 344.0 255.4 Perpetual Income . . .275.8 0.8 276.5 212.0 Premier Foods . . . . . . .31.0 -0.2 35.1 16.0 INDUSTRIAL ENGINEERING Pearson . . . . . . . . . .1145.0 2.0 1171.0 864.0 Pursuit Dynamics . . .358.8 -33.3 700.0 188.0
Polar Cap Technol . .349.4 0.4 391.2 273.6 Tate & Lyle . . . . . . . . .656.0 8.0 666.5 409.1 REAL ESTATE INVEST. & SERV. TOBACCO Rockhopper Explor .276.8 7.8 510.0 202.5
HSBC Holdings . . . . .623.2 -2.6 730.9 596.2 Bodycote . . . . . . . . . .371.9 -0.5 397.7 182.5 Reed Elsevier . . . . . .546.0 -10.0 590.5 471.4
Lloyds Banking Gr . . .47.6 0.7 77.6 46.7 RIT Capital Partn . . .1313.0 18.0 1328.0 1056.0 Unilever . . . . . . . . . .1980.0 4.0 2000.0 1688.0 Charter Internati . . . .762.5 0.5 853.5 567.0 Rightmove . . . . . . . .1091.0 -7.0 1104.0 596.5 Capital & Countie . . .175.8 -1.4 180.1 100.2 British American . .2730.5 -7.5 2755.5 2091.0 RWS Holdings . . . . . .437.4 -7.6 445.0 239.0
Royal Bank of Sco . . .41.4 -0.1 52.1 37.6 Schroder Asia Pac . .221.4 -2.8 233.6 182.8 Fenner . . . . . . . . . . . .375.0 -2.5 391.9 186.8 STV Group . . . . . . . . .141.0 3.0 168.0 66.0 Daejan Holdings . . .2810.0 -30.0 2919.0 2220.0 Imperial Tobacco . .2171.0 -7.0 2231.0 1784.0 Songbird Estates . . .157.3 0.3 159.5 133.8
Scottish Inv Trus . . . .509.5 0.5 517.0 401.5 FORESTRY & PAPER F&C Commercial Pr .105.9 0.4 108.0 88.0 Sterling Energy . . . . . .44.0 0.0 147.0 43.5
Standard Chartere .1578.0 -3.5 1950.0 201.5 IMI . . . . . . . . . . . . . . .1031.0 -7.0 1112.0 642.0 Tarsus Group . . . . . .144.5 2.5 165.0 112.0
Scottish Mortgage . .735.5 0.0 764.0 533.0 Mondi . . . . . . . . . . . . .614.5 11.5 617.0 367.6 Grainger . . . . . . . . . . .126.1 1.1 128.2 86.3 TRAVEL & LEISURE Valiant Petroleum . . .628.5 46.5 761.5 504.0
BEVERAGES Melrose . . . . . . . . . . .334.9 -0.8 355.5 203.4 Trinity Mirror . . . . . . . .43.0 0.5 124.3 42.0
SVG Capital . . . . . . . .264.7 5.7 279.8 137.8 GAS, WATER & MULTIUTILITIES Northgate . . . . . . . . . .326.0 -0.6 346.7 152.3 United Business M . .565.0 -3.5 725.0 483.8 Helical Bar . . . . . . . . .266.1 -0.6 339.5 255.3 Avis Europe . . . . . . . .197.0 6.0 267.9 184.0 Vatukoula Gold Mi . . .119.8 0.8 227.0 84.0
AG Barr . . . . . . . . . .1383.0 15.0 1395.0 1004.0 Temple Bar Inv Tr . . .937.0 6.5 947.5 717.0 Rotork . . . . . . . . . . .1704.0 6.0 1895.0 1254.0 UTV Media . . . . . . . . .128.8 0.3 151.0 106.0 London & Stamford .137.8 -2.2 140.0 110.3 Betfair Group . . . . . . .794.0 -4.5 1550.0 753.0 Young & Co's Brew . .669.8 14.8 685.0 510.0
Britvic . . . . . . . . . . . . .431.8 -5.7 518.0 364.5 Templeton Emergin .636.0 0.0 689.5 515.0 Centrica . . . . . . . . . . .322.3 7.8 346.1 277.3 Spirax-Sarco Engi . .1991.0 -14.0 2063.0 1346.0 Wilmington Group . . .119.0 0.0 183.0 117.8 Savills . . . . . . . . . . . . .419.8 -6.2 432.0 273.1 Bwin.party Digita . . .145.6 3.6 309.5 127.5
Diageo . . . . . . . . . . .1283.0 -8.0 1301.0 1033.0 TR Property Inv T . . .195.0 -0.4 201.0 132.3 International Pow . . .318.6 3.6 448.6 289.6 Weir Group . . . . . . .2000.0 30.0 2012.0 894.0 WPP . . . . . . . . . . . . . .732.0 -2.5 846.5 614.5 St. Modwen Proper . .188.6 1.1 189.9 135.4 Carnival . . . . . . . . . .2355.0 2.0 3153.0 2037.0
SABMiller . . . . . . . . .2234.5 -2.0 2306.0 1827.0 TR Property Inv T . . . .90.5 0.6 91.0 59.5 National Grid . . . . . . .593.5 4.0 632.5 484.2 Ferrexpo . . . . . . . . . . .470.7 19.1 499.0 235.0 Yell Group . . . . . . . . . . .6.1 0.1 30.7 5.8 UK Commercial Pro . .84.0 -0.4 85.0 74.3 Compass Group . . . .591.0 1.5 594.0 501.0
CHEMICALS Witan Inv Trust . . . . .513.5 1.0 528.0 409.9 Northumbrian Wate .371.3 5.3 378.1 280.9 Talvivaara Mining . . .470.0 -8.0 622.0 351.6 Unite Group . . . . . . . .218.5 0.1 229.8 163.0 Domino's Pizza UK . .399.8 1.4 586.0 349.6
Pennon Group . . . . . .662.0 5.0 675.0 527.0 MINING easyJet . . . . . . . . . . . .360.7 -0.8 479.0 322.3
FINANCIAL SERVICES INDUSTRIAL TRANSPORTATION REAL ESTATE INVEST. TRUSTS
AZ Electronic Mat . . .322.4 3.4 338.1 248.5 Severn Trent . . . . . .1460.0 -3.0 1517.0 1216.0 African Barrick G . . .450.0 -3.0 670.0 445.0 Enterprise Inns . . . . . .77.0 0.1 122.7 76.8
Croda Internation . .1946.0 1.0 1967.0 971.0 3i Group . . . . . . . . . . .280.1 0.3 340.0 254.1 United Utilities . . . . .608.0 6.0 632.0 520.0 BBA Aviation . . . . . . .215.5 -0.2 240.8 175.0 Anglo American . . .2974.0 -10.0 3437.0 2254.0 Big Yellow Group . . .328.4 -4.0 353.3 284.4 FirstGroup . . . . . . . . .337.7 1.0 412.6 311.3
Elementis . . . . . . . . . .159.2 3.5 169.8 58.8 3i Infrastructure . . . .123.8 0.3 125.2 106.6
GENERAL INDUSTRIALS Stobart Group Ltd . . .138.0 -2.1 163.6 124.1 Anglo Pacific Gro . . .309.0 9.0 369.3 241.5 British Land Co . . . . .593.0 1.0 604.5 429.0 Go-Ahead Group . . .1492.0 -5.0 1506.0 1042.0 http://corporate.webfg.com
Johnson Matthey . .2023.0 -20.0 2119.0 1460.0 Aberdeen Asset Ma .230.4 -1.3 240.0 123.0 Antofagasta . . . . . . .1290.0 0.0 1634.0 761.0 Capital Shopping . . .386.7 -0.4 424.8 301.3 Greene King . . . . . . .494.7 -0.2 502.5 376.2 mailto:
Victrex . . . . . . . . . . .1453.0 27.0 1525.0 1049.0 Ashmore Group . . . .381.6 -1.4 385.5 236.5 Cookson Group . . . . .683.5 3.5 724.5 367.4 NON LIFE INSURANCE Aquarius Platinum . .342.8 -0.2 419.0 227.1 Derwent London . . .1853.0 0.0 1861.0 1208.0 InterContinental . . .1221.0 1.0 1435.0 982.0
Berkeley Technolo . . . .4.3 0.0 9.0 2.2 DS Smith . . . . . . . . . .219.5 4.4 226.0 108.0 Admiral Group . . . . .1737.0 28.0 1754.0 1323.0 BHP Billiton . . . . . . .2342.0 16.0 2631.5 1684.5 Great Portland Es . . .439.6 -2.6 443.2 280.5 International Con . . .229.1 -0.5 305.0 186.5 globaltechsales@webfg.com

EUSHARES USSHARES
Price Chg High Low Price Chg High Low
AIR LIQUIDE........................................93.85 0.55 100.65 78.81 3M ........................................................90.85 0.23 97.95 72.72
ALLIANZ ..............................................92.63 0.85 108.85 77.48 ABBOTT LABS ...................................51.38 0.36 54.24 44.59
ALSTOM ..............................................41.93 0.62 45.32 30.78 ALCOA ................................................15.69 0.08 18.47 9.81
ANHEUS-BUSCH INBEV ....................40.33 -0.06 46.33 38.37 ALTRIA GROUP ..................................27.10 -0.15 28.13 19.53
ARCELORMITTAL...............................22.36 0.27 28.55 20.26 AMAZON.COM..................................187.55 1.86 206.39 105.80

UP
1/2 PRICE SALE
AXA......................................................14.68 0.23 16.16 10.88 AMERICAN EXPRESS........................48.89 0.11 51.97 37.13
BANCO SANTANDER...........................7.97 0.02 10.23 7.00 AMGEN INC.........................................58.83 0.23 61.53 50.34
BASF SE..............................................62.60 -0.26 70.22 40.74 APPLE ...............................................332.04 -6.00 364.90 236.78
BAYER .................................................56.04
BBVA......................................................7.83
BMW ....................................................60.32
-0.21
0.01
-0.42
59.44
10.71
65.49
43.27
6.75
37.31
TO AT&T....................................................30.31
BANK OF AMERICA ...........................10.65
BERKSHIRE HATAW B.......................74.86
-0.05
-0.18
-0.48
31.94
16.10
87.65
23.88
10.60
69.61
BNP PARIBAS.....................................52.64 0.14 59.93 40.81 BOEING CO.........................................74.18 -0.40 80.65 59.48
CARREFOUR ......................................30.08 -0.01 41.28 29.83 BRISTOL MYERS SQUI......................27.99 0.02 28.99 22.31
CREDIT AGRICOLE ............................10.33 0.05 12.92 7.87 CATERPILLAR....................................99.88 0.02 116.55 54.89
CRH PLC .............................................14.46 -0.03 19.92 11.51 CHEVRON ...........................................99.47 -0.21 109.94 66.83

MEN’S SUITS FROM £199

DAIMLER .............................................47.10 -0.10 59.09 37.03 CISCO SYSTEMS................................15.51 -0.48 26.00 15.49
DANONE..............................................50.16 -0.26 51.33 41.00 CITIGROUP .........................................37.58 -0.49 51.50 36.20
DEUTSCHE BANK ..............................40.20 0.09 51.61 35.93 COCA-COLA .......................................65.20 -0.22 68.77 49.47
DEUTSCHE BOERSE .........................53.50 -0.31 62.48 46.33 COLGATE PALMOLIVE ......................83.89 -0.54 87.58 73.12

BUY 1 GET 1 1/2 PRICE E

DEUTSCHE TELEKOM .......................10.09 0.09 11.38 8.97 CONOCOPHILLIPS.............................70.87 -0.05 81.80 48.06
E.ON.....................................................19.00 0.58 25.54 18.25 IN DU PONT(EI) DE NMR........................50.29 0.44 57.00 33.73
ENEL......................................................4.62
ENI .......................................................16.08
0.00
0.03
4.86
18.66
3.42
14.59 O NL EMC CORP..........................................27.06
EXXON MOBIL....................................80.00
-0.26
-0.29
28.73
88.23
17.72
55.94
FRANCE TELECOM............................15.30
GDF SUEZ ...........................................24.55
0.02
0.23
17.45
30.05
14.01
22.64
WWW.AUSTINREED.CO.UK ES
&
AY GENERAL ELECTRIC.........................18.48
GOLDMAN SACHS GRP ..................133.03
0.02
-0.87
21.65
175.34
13.75
129.50
GENERALI ASS...................................14.88 0.11 17.05 13.31
OR D GOOGLE A........................................519.03 -2.03 642.96 433.63

ST TO
IBERDROLA ..........................................6.07 0.03 6.50 4.38 Terms&Conditions apply see in store for details HEWLETT PACKARD.........................35.57 -0.39 49.39 35.44
ING GROEP CVA...................................8.14
INTESA SANPAOLO .............................1.81
0.07
0.03
9.50
2.53
5.86
1.65 IN HOME DEPOT.....................................34.33
IBM.....................................................163.69
0.04
-1.06
39.38
173.54
26.62
120.61
KON.PHILIPS ELECTR .......................18.43 0.02 26.87 18.37 INTEL CORP .......................................22.06 0.23 23.96 17.60
L'OREAL..............................................85.43 -0.32 90.00 74.50 J.P.MORGAN CHASE .........................40.72 0.19 48.36 35.16
LVMH..................................................117.60 0.05 129.05 84.85 WORLD INDICES JOHNSON & JOHNSON.....................65.50 -0.55 67.37 56.86
MUNICH RE .......................................103.65 0.60 126.00 98.38 KRAFT FOODS A................................34.04 -0.02 35.44 27.59
Price Chg %chg Price Chg %chg Price Chg %chg Price Chg %chg
NOKIA....................................................4.48 -0.07 8.49 4.27 MC DONALD'S CORP ........................81.14 0.44 83.08 65.31
FTSE 100 . . . . . . . . . . . . . . 5864.65 1.49 0.03 S&P 500 . . . . . . . . . . . . . . . 1284.94 -1.23 -0.10 CAC 40 . . . . . . . . . . . . . . . . 3871.92 8.52 0.22 BOVESPA SAO PAOLO . . 63217.85 150.12 0.24
REPSOL YPF.......................................22.28 -0.29 24.90 15.67 MERCK AND CO. NEW ......................35.57 0.01 37.68 31.06
FTSE 250 INDEX . . . . . . . 12008.79 11.86 0.10 NASDAQ COMPOSITE . . . 2701.56 -1.00 -0.04 SHANGHAI SE INDEX . . . . 2744.30 16.28 0.60 ISEQ OVERALL INDEX . . . 2924.76 -15.74 -0.54
RWE .....................................................38.70 0.82 59.85 37.44 MICROSOFT........................................24.06 0.05 29.46 22.73
FTSE UK ALL SHARE . . . . 3064.03 1.29 0.04 FTSEUROFIRST 300 . . . . . 1104.05 -0.92 -0.08 HANG SENG. . . . . . . . . . . 22868.67 -80.89 -0.35 STI . . . . . . . . . . . . . . . . . . . . 3115.95 2.22 0.07
SAINT-GOBAIN ...................................44.11 -0.15 47.64 27.81 OCCID. PETROLEUM.......................101.46 -0.48 117.89 72.13
FTSE AIM ALL SH . . . . . . . . 881.90 -0.72 -0.08 NIKKEI 225 AVERAGE . . . . 9442.95 62.60 0.67 S&P/ASX 20 INDEX . . . . . . 2746.20 3.10 0.11 IGBM . . . . . . . . . . . . . . . . . . 1035.89 1.13 0.11
SANOFI................................................52.42 -0.02 56.50 44.01 ORACLE CORP...................................31.84 -0.35 36.50 21.24
DOW JONES INDUS 30 . . 12070.81 -19.15 -0.16 DAX 30 PERFORMANCE. . 7103.25 18.68 0.26 ASX ALL ORDINARIES . . . 4641.10 -7.60 -0.16 SWISS MARKET INDEX. . . 6330.65 -39.41-0.62--
SAP ......................................................42.19 0.12 46.15 34.13 PEPSICO .............................................68.93 0.04 71.89 60.32
SCHNEIDER ELECTRIC ...................112.20
SIEMENS .............................................90.32
0.50
0.11
123.65
99.39
79.70
70.02
COMMODITIES CREDIT & RATES PFIZER ................................................20.74
PHILIP MORRIS INTL .........................67.81
0.00
-0.51
21.45
71.75
14.00
42.94
SOCIETE GENERALE.........................40.35 0.26 52.70 29.71 LON GD ONCE FIX AM...........1548.40 5.65 TIN CASH.............................26000.00 -350.00 BoE IR Overnight ............................0.500 0.00 Euro Base Rate ...............................1.250 0.00 PROCTER AND GAMBLE ..................65.06 -0.44 67.72 56.57
TELECOM ITALIA..................................0.97 0.01 1.16 0.88 SILVER LDN FIX AM ..................36.67 -0.36 ZINC CASH ............................2252.00 32.50 BoE IR 7 days .................................0.500 0.00 Finance house base rate ................1.000 0.00 QUALCOMM INC ................................56.51 0.03 59.84 31.63
TELEFONICA ......................................16.48 0.08 19.69 14.83 MAPLE LEAF 1 OZ ....................50.00 -7.50 BoE IR 1 month ..............................0.500 0.00 US Fed funds...................................0.250 0.00 SCHLUMBERGER ..............................82.88 -0.18 95.64 52.91
BRENT SPOT INDEX ................114.92 0.00 BoE IR 3 months ............................0.500 0.00 US long bond yield .........................4.020 0.03
TOTAL..................................................38.29 0.14 44.55 35.66 LON PLATINUM AM................1820.00 0.00 TRAVELERS CIES ..............................61.23 0.17 64.17 47.77
SOYA .....................................1383.25 -31.25 BoE IR 6 months ............................0.545 0.00 European repo rate .........................0.880 0.00
UNIBAIL-RODAMCO SE...................152.15 -0.55 159.30 108.66 LON PALLADIUM AM ...............796.00 9.00 UNITED TECHNOLOGIE ....................83.25 -0.46 90.67 62.88
COCOA ..................................2863.00 -15.00 LIBOR Euro - overnight ..................0.892 0.00 Euro Euribor ....................................1.018 0.00
UNICREDIT............................................1.53 0.01 2.24 1.46 ALUMINIUM CASH .................2626.50 -17.50 LIBOR Euro - 12 months ................2.106 0.00 The vix index ...................................17.71 -0.78 VERIZON COMMS ..............................35.38 0.17 38.95 25.30
UNILEVER CVA...................................22.42 0.10 24.11 20.68 COPPER CASH ......................9097.00 81.50 COFFEE...................................260.50 -10.45 WAL-MART STORES..........................53.83 0.07 57.90 47.77
LIBOR USD - overnight...................0.126 0.00 The baltic dry index ........................1.484 0.00
VINCI....................................................42.38 0.21 45.48 33.01 LEAD CASH ...........................2470.00 45.00 KRUG.....................................1594.40 -13.30 LIBOR USD - 12 months .................0.725 0.00 Markit iBoxx...................................220.60 -0.09 WALT DISNEY CO ..............................39.35 -0.05 44.34 30.72
VIVENDI ...............................................18.89 -0.01 22.07 16.25 NICKEL CASH ......................22605.00 70.00 WHEAT ....................................184.88 -4.62 Halifax mortgage rate .....................3.500 0.00 Markit iTraxx ....................................95.06 0.00 WELLS FARGO & CO.........................25.77 -0.49 34.25 23.02
CITYA.M. 8 JUNE 2011 Lifestyle | TV& Games 27

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm Waterloo Road: BBC
News
8.30pm In with the Flynns
9pm The Apprentice
10pm BBC News
10.25pm Regional News
10.35pm The National Lottery
Wednesday Night Draws
10.45pm Not Going Out 11.15pm
FILM The Mexican. 2001; National
Lottery Update 1.15am Sign Zone:
See Hear 1.45am Sign Zone:
Country Tracks 2.40am Sign Zone:
The British at Work 3.40am-6am
BBC News
6pm Eggheads: Quiz show.
6.30pm Britain’s Empty Homes
7pm Escape to the Country
7.30pm CHOICE Springwatch
2011
8.30pm Springwatch
Unsprung 2011
9pm Wonderland – Travels
with My Family
10pm The Apprentice: You’re
Fired!
10.30pm Newsnight: Weather
11.20pm Stewart Lee’s
Comedy Vehicle
11.50pm Queen: Days of Our
Lives 12.50am BBC News
3.40am-6am Close
6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.30pm ITV News 6.30pm Hollyoaks 6.25pm OK! TV
7pm Emmerdale 7pm Channel 4 News 7pm 5 News at 7
7.30pm Poms in Paradise 7.55pm 4thought.tv 7.30pm Pawn Stars
8pm CHOICE You’ve Been 8pm Embarrassing Bodies: 8pm CHOICE Giant Animal
Framed and Famous! Live from the Clinic Moves: 5 News at 9
9pm Injustice 9pm 24 Hours in A&E 9pm NCIS
10pm ITV News at Ten 10pm Desperate Housewives 10pm Law & Order: Criminal
10.30pm London News 11.05pm The Big Bang Theory Intent
10.35pm Mugged 12am Music on 4: The Album Chart 10.55pm Law & Order: Special SPRINGWATCH 2011
Show: Spotlight 12.15am Benjamin Victims Unit BBC2, 7.30PM
11.35pm Cops with Cameras Francis Leftwich 12.35am Mirrors Kate Humble and Chris Packham are
11.55pm Poker: Aussie Millions
12.30am The Zone; ITV News 12.50am Dad’s Having a Baby: A 12.50am SuperCasino 4am The joined by Martin Hughes-Games and
Headlines
Bodyshock Special 1.45am FILM Family Recipe 4.10am Michaela’s Charlie Hamilton-James to follow the
2.30am FILM Village of the The Shape of Things. 2003. 3.25am Wild Challenge 4.35am Michaela’s fortunes of wildlife.
Damned: Sci-fi thriller remake, The Dead Zone 4.05am Hill Street Wild Challenge 4.55am County
starring Christopher Reeve. 1995. Blues 5am Wogan’s Perfect Recall Secrets 5.10am Wildlife SOS
4.10am-5.30am ITV Nightscreen 5.25am-6.10am Countdown 5.35am-6am House Doctor

SKY SPORTS 1 3.30am European Tour Weekly SKY LIVING Man 1.50am Ugly Betty 2.30am DISCOVERY HOME &
SATELLITE & CABLE

5.30pm Live Twenty20 Cup
Cricket 9pm FIFA Futbol Mundial
9.30pm Football’s Greatest 10pm
The Sky Sports Years 11pm
Twenty20 Cup Cricket 1am Boots
‘n’ All 2am The Sky Sports Years
3am Twenty20 Cup Cricket 5am
FIFA Futbol Mundial
5.30am-6am Football’s Greatest
SKY SPORTS 2
1.55pm Live International One-
Day Cricket 10pm Boots ‘n’ All
11pm Kings of the Surf 11.30pm
NFL: Total Access 12.30am
International Rugby Union
2.30am-3am Total Rugby
SKY SPORTS 3
5pm Live International Rugby
Union 7.30pm Live International
Rugby Union 10pm Total Rugby
10.30pm Trans World Sport
11.30pm Cage Fighter 12am
Champions Tour Golf 1am Poker
3am Inside the PGA Tour
4am-5am Champions Tour Golf
BRITISH EUROSPORT
12.15pm Live ATP Tennis 8.15pm
Olympic Magazine 8.45pm
Wednesday Selection 8.55pm
Show Jumping 9.55pm Riders
Club 10pm Ladies European Tour
Golf 10.10pm Golf Club 10.15pm
Yacht Club 10.20pm Wednesday
Selection 10.30pm ATP Tennis
11.35pm-12.40am Cycling
ESPN
6.45pm ESPN Press Pass:
Football-related debate. 7.15pm
Premier League World 7.45pm
ESPN Kicks: Extra 8pm DTM
Review Show 9pm Formula 3
Euroseries Review 10pm VW
Scirocco Cup 11pm VW Scirocco
Cup 12am Live Major League
Baseball 3am Baseball Tonight
4am ESPN Kicks: Extra 4.15am
ESPN Press Pass 4.45am UFC
5.45am-6am ESPN Kicks: Extra
7pm CSI: Crime Scene
Investigation 8pm Psychic Sally:
On the Road 9pm Bones 10pm
Supernatural 11pm Nikita 12am
Criminal Minds 1am CSI: Crime
Scene Investigation 2.40am
Ghost Whisperer 4.20am
Charmed 5.10am-6am Maury
BBC THREE
7pm Top Gear 8pm Great Movie
Mistakes 2: The Sequel 9pm
Cannabis: What’s the Harm?
10pm FILM Kill Bill: Vol 2 2004.
12.10am Family Guy 12.55am
Cannabis: What’s the Harm?
1.55am American Dad!
4.25am-5.25am Great Movie
Mistakes 2: The Sequel
E4
7pm Hollyoaks 7.30pm Friends
9pm FILM Tenacious D in The
Pick of Destiny 2006. 11pm Rude
Tube: Rude Tunes 12am My Name
Is Earl 1am David Blaine: Magic
David Blaine: Magic Man 3.15am
Privileged 3.55am Reaper HEALTH
4.35am-6am Switched 7pm Bringing Home Baby 8pm
Little People, Big World 9pm
HISTORY Untold Stories of the ER 10pm
7pm Heir Hunters 8pm Ax Men Hospital Sydney 11pm A&E: YOU’VE BEEN FRAMED AND
11pm Oil Riggers 12am Ax Men Outback 11.30pm Chopper FAMOUS! ITV1, 8PM
2am Deep Wreck Mysteries 3am Rescue 12am Untold Stories of Harry Hill showcases some of the best
Heir Hunters 4am The Universe the ER 1am Hospital Sydney 2am celebrity lookalike clips. Highlights
5am-6am Ax Men A&E: Outback 2.30am Chopper include Tom Cruise, Kylie Minogue and
Rescue 3am Little People, Big John Barrowman doppelgangers.
DISCOVERY World 4am A Baby Story
8pm How It’s Made 9pm Britain’s 5am-6am Bringing Home Baby
Toughest Cops: Specially trained
officers deal with dangerous SKY1
situations. 10pm I Almost Got 8pm Emergency with Angela
Away with It 11pm Disaster Griffin: The actress highlights the
Eyewitness 12am Bear Grylls: work of paramedics. 9pm Brit
Born Survivor: Surviving in the Cops: Zero Tolerance 10pm Fringe
Australian Outback. 1am Britain’s 11pm Cop Squad 12am The
Toughest Cops 2am I Almost Got Chicago Code 1am Night Cops GIANT ANIMAL MOVES
Away with It 3am Deadliest 1.50am Stargate Atlantis CHANNEL5, 8PM
Catch 3.50am Future Weapons 3.20am Top Ten Show 3.30am Two silvertip sharks must be flown
4.40am Nasa’s Greatest Missions Myths, Magic and Monsters from Australia to Dubai for a breeding
5.30am-6am Destroyed in 4.20am Airline 5.10am-6am programme, but the animals are hard
Seconds Don’t Forget the Lyrics to keep alive in confined spaces.

COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

QUICK CROSSWORD
    

SUDOKU KAKURO
5 34 18 5 4 15 7
10 11 3
22 15  
45
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 7 13
17 9 26 10
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 22 3 14
  
above or to the left of it. 13 23
You can only use the digits 1-9 45
     and you must not use the 5 16    
same digit twice in a block. 7 35 12 33 6
 The same digit may occur 45

   more than once in a row or

column, but it must be in a
6
4
13
9
10
  
8 6
 separate block.
9 15 11 12
45
   11 23 15
 

    ACROSS DOWN
1 Pigment prepared 1 Draws in by a
  
   WORDWHEEL M A
from the ink of
cuttlefishes (5)
vacuum (5)
2 Metal cooking vessel (3)
Using only the letters in the Wordwheel, you have 4 Clench, clutch tightly (5)
3 Assumed name (5)
 ten minutes to find as many words as possible,
N T 7 Restrain (7)
4 Conjecture (5)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters M 8 Beast of burden (3)
5 Non-professional (7)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
S U 9 Types, varieties (5)
6 Ski run densely packed
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
E E
11 Root vegetable (5) with snow (5)
12 Tip at an angle (5) 10 Nuclear plant (7)
QUICK CROSSWORD 3 2 6 5 7 9

N O B L E W O R K S
7 6 9 8 4 1 6 2 SUDOKU         
14 Bushy plant (5) 12 Judder (5)
6 1 7 9 3 4 2 8 5 16 Toward the stern 13 Mark (~) placed over the
O E R C W         
9 4 4 1 2 7 1
T I P T O E T U B A          of a ship (3) letter ‘n’ in Spanish (5)
I A D E N 5 3 2 2 8 7
        
C A S T I G A T E D 8 5 7 9 1 3 5 2 17 Acquired knowledge (7) 14 Woollen item worn
WORDWHEEL
E H N I B G C         
3 5 7 1 7 5 about the neck (5)
M A G N A C A R T A
8 4 8 9 4 6 1          19 Suggestive of the
F L N E V
L E G O T A T T L E
7 2 9 6 5 3 1 8 4 The nine-letter word was          supernatural (5) 15 Emblem (5)
A V S O A 9 6 8 6 1 2 4 3         
T O W E L S P U R T 1 3 8 2 9 7
BOOMERANG          20 Compel (5) 18 Not either (3)
 Lifestyle
28 CITYA.M. 8 JUNE 2011

| Motors WORDS BY
RYAN BORROFF

A motoring show for Londoners

Motorexpo is the best way to see some of the Punters can
industry’s exciting new motor designs in situ get up close
A
S a car hack I have spent an awful
lot of time at international motor
shows over the years. Sure they can
be hard work, they’re often very
busy and can get too big to afford you a
really good overview on what’s going on.
Ideally, it’s good to see rival cars close
together to better understand them but at
the really big motor shows it’s just not pos-
sible. If you’re looking to choose which car
to buy you can come away more bewil-
dered than when you arrived. And as for
the dream exotic supercars it can be diffi-
cult to get anywhere near them.
But the real problem with motor shows
has always been their static format. Sure
you can sit in the cars but it’s rare to get a
chance to test drive the cars you’re consid-
ering owning. How good would it be to
have a chance to drive some of the cars
you’re interested in?
London’s sole remaining motor
show, Motorexpo is the clos-
est we have to a British
motor show since the
demise of the event in
2010. The Motorexpo
show – which is under-
way at Canary Wharf –
has taken the tired, familiar motor show
format and given it a clever twist. And its
unusual format goes some way towards
solving some of these issues. More impor-
tantly, it’s also free and close enough that
you can pop down there over a lunch
break or even over the weekend.
Its best feature is that it has been creat-
ed for Londoners. Motorexpo’s “show
floor” is the streets and buildings around
Canary Wharf. This means punters can get
up close to the cars and see them in a
more natural urban setting. You can even
drive some of them. Considering the
amount of time I’ve spent looking at a car
under artificial lights only to discover it
looks very different on the road, this
seems a very good thing indeed.
Companies including Bentley, BMW,
Jaguar, Land Rover, Lexus,
Lotus, Mercedes-Benz,
Mini, Mitsubishi,
Morgan, Nissan,
Saab, Skoda, Tesla,
V a u x h a l l ,
Volkswagen and
Volvo are exhibit-
ing more than
250 vehicles
to the cars
and see them
in a more
natural urban
setting. You
can even between them, at the show which ends
drive them Sunday.
Members of the public can also drive
some of the emerging wave of more eco
friendly vehicles. The “Drive the Future”
Above, scenes from display in Montgomery Square has been
Motorexpo. Above set up to de-mystify electric, hybrid and
right, an orange ultra-economical vehicles and show what
Bentley Continental these emerging alternative powered vehi-
GT. Below left, a cles have to offer. You could get to drive
Range Rover Evoque. the electric Mitsubishi i-MiEV and Nissan
Leaf or super economical versions of the
Volkswagen Polo and Skoda Fabia and if
you’re lucky enough – the breathtaking
electric Tesla Roadster sportscar. There is
even an extended-range electric Vauxhall
Ampera saloon, a car that’s not even been
launched yet.
The display is supported by the RAC,
Transport for London and the Low Carbon
Vehicle Partnership so there are plenty of
boffins to answer technical questions on
topics such as government grants for low
emission cars. You can also see electric
charging-point exhibits and a mobile
hydrogen refuelling station to help better
imagine what your real-world commuting
experience could be driving such
advanced cars.
With car journalists reviews ranging
from hostile cynicism to gushing plaudits,
it’s a great chance to see cars for yourself
and make up your own mind. Or at very
least get some real world experience and
see what all the fuss is about.
Motorexpo is open: Monday June 6th –
Sunday June 12. (10 am–6pm, Mon-Sat. From 11
am – 5pm, Sunday.) www.motorexpo.com

CAR TALK: MORE FROM MOTOREXPO BY RYAN BORROFF

JAGUAR CONVOY
If you’d spotted the convoy of 50 Jaguar E-types travelling through
London on Monday you’d already have guessed Jaguar is exhibiting at
Motorexpo. The company is showing the fastest production car it has
ever produced – the 186 mph XKR-S – at the Canary Wharf show,
plus its most efficient Jaguar yet – the XF 2.2.
LEXUS DISPLAYS 202MPH LFA SUPERCAR
Lexus has brought its LFA supercar amongst its other models to
Motorexpo. The 4.8-litre V10 powered supercar is capable of
202mph and 0-62mph in 3.7sec and costs a mean £340,000. If
that’s a little rich for your blood, why not test drive the new CT
200h full hybrid luxury hatchback – a car we enthused about a few
weeks back.
WIN A F1 DRIVE IN HUNGARY
There’s a chance to win a drive in a F1 single-seater around
Hungary’s famous Hungaroring circuit at Motorexpo. The all expens-
es paid full-day driving experience will include a drive in a Formula
Renault 2.0, Lotus GT4 and a Formula One single-seater.  To win all
you have to do is post the fastest race time on one of the of F1 simu-
lators in the show’s RaceRoom in Jubilee Place.
 Sport
30

SPORT | IN BRIEF
Woods pulls out of US Open
GOLF: Former world No1 Tiger Woods
will miss the US Open next week
England left WINDOW PAIN: PRIOR SAYS SORRY FOR INJURING FAN

because of injury. The 35-year-old suf-

fered a sprain to his left knee and a mild
strain to his left Achilles tendon during
the third round of the Masters in April.
“I am extremely disappointed I won’t be
playing in the US Open [16-19 June],” he
feeling flat by
said. “But it’s time for me to listen to my
doctors.”

Serena set for her comeback

TENNIS: Serena Williams has confirmed
she will return to action at next week’s
Aegon International in Eastbourne. The
Lord’s pitch
American, 29, has not played since beat-
ing Vera Zvonareva in last year’s Strauss blames dead surface for tepid draw and
Wimbledon final. Shortly after winning
that event, she cut her foot on broken
glass then needed treatment for a blood
hopes Anderson will return for the series decider
clot in her lung.
Stuart Broad failing to grasp the net-
▲

CRICKET
Ward knocks out Wawrinka BY JAMES GOLDMAN
TENNIS: British No2 James Ward
enjoyed the best win of his career beat- ENGLAND captain Andrew Strauss
ing Swiss fourth seed Stanislas blamed the lifeless Lord’s pitch for
Wawrinka in round two of the Aegon his side’s failure to force a victory on
Championships at Queen’s Club. The 24- the final day of the second Test.
year-old held his nerve to win 7-6 (7-3), Alastair Cook continued his rich
6-3 and he will now face defending vein of form by reaching his sixth
champion Sam Querrey in round three. century in his last nine Test innings
Ward revealed he has recently started and his 18th overall, while Kevin
working with ex-cage fighter Diego Pietersen returned to something like
Visotzky as his fitness trainer. “He’s his best with a classy 72.
taught me a lot and given me a lot of However, disciplined Sri Lankan
discipline,” said Ward. “And obviously bowling and a strangely conservative
I'm not going to answer him back too Cook meant Strauss was unable to
many times.” declare at lunch. The Essex left-han-
der and Ian Bell upped the tempo
Swansea seal Graham swoop after the interval but England’s
FOOTBALL: Swansea have broken their attack were given just 58 overs to
transfer record by signing Danny bowl out the tourists, who were set
Graham, 25, last season’s Championship 343 to win.
top goalscorer, for £3.5m from Watford. Unlike in Cardiff last week, Sri
Lanka’s batsmen offered stiff resist-
tle in the absence James Anderson.
The Lancashire paceman will go
straight back into the team, fitness
permitting, for the final Test of the
series at the Rose Bowl leaving
Strauss with a potentially difficult
selection issue, not that the captain
was giving away anything yesterday.
“Hopefully he [Anderson] will be
fit but we don’t know at this stage,”
he added.
Despite criticism of his scoring
rate on the final morning the match
represented another personal tri-
umph for Cook, who added 106 to
his first innings 96.
The 26-year-old is just four away
from Wally Hammond’s all-time
record of 22 centuries for England
and the Essex left-hander believes
those who suggested he should have
batted more selflessly yesterday were
wide of the mark.

Results ance and the players eventually

shook hands on a draw with 15 overs
remaining and the visitors on 127-3.
“When we went out there today
we were only 140 runs ahead, so if
you lose a couple of wickets it’s not a
=FFK98CC “We didn’t expect them to fold great position. It was about getting
<LIFG<8E:?8DG@FEJ?@GHL8C@=P@E> quite as they did [in the first Test] at through that first hour,” he said. “We
>IFLG8 Cardiff, and they didn’t on a flat actually scored at four an over in
8q\iYX`aXe%%%%%%%%%%%%% '  ( >\idXep%%%%%%%%%%%%%%%%%%%% )  * wicket,” said Strauss. “The guys had that session but you have to give
  G N ; C = 8 >; Gkj
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Klib\p%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%- * ( ) 0 . ) (' wickets or not – and it just seemed Tillakaratne Dilshan for the final
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that we’d run our race.” Test. The skipper, who won the man
BXqXb_jkXe%%%%%%%%%%%%%%%%%%%%- ( ' , ) (, $(* * England’s pace attack never of the match award for his first ENGLAND wicketkeeper Matt Prior was forced into making a public apology to confused MCC
>IFLG: offered a consistent threat over the innings 193, is not expected to have members at Lord’s after breaking a dressing room window with his bat. Prior was run out follow-
=Xif\@jcXe[j%%%%%%%%%(  ) <jkfe`X%%%%%%%%%%%%%%%%%%%%%%%'  ' course of a match that always recovered from a fracture of his ing a mix-up with Ian Bell and once he had returned upstairs, according to an England and
  G N ; C = 8 >; Gkj seemed destined to end in a draw right thumb which prevented him Wales Cricket Board statement, his bat handle “bounced off the wall into the glass” which smashed
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with Steven Finn, Chris Tremlett and from batting yesterday. and cut the ankle of a female member standing below. Pictures: ACTION IMAGES / GETTY
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London trio handed tough Crouch denies he’d ever

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>IFLG;
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Heineken Cup assignments turn his back on England

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said at no point will he follow the

▲

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?le^Xip%%%%%%%%%%%%%%%%%%%%%%%%%%%. + ' * (/ (* , () have avoided the big-hitters in the he is fully committed to England but England, I’ve done well, so I felt
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Dfc[fmX%%%%%%%%%%%%%%%%%%%%%%%%%%%- ) ' + . 0 $) - son’s Heineken Cup, but capital rivals
POOL TWO: Cardiff Blues, London Irish, national football has crossed his treated,” he said.
JXeDXi`ef%%%%%%%%%%%%%%%%%%%%. ' ' . ' ** $** '
London Irish and Harlequins have not Edinburgh, Racing Metro 92 mind following his latest snub. “Playing for England is the pinna-
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:I@:B<K The Exiles have been plunged into a Crouch didn’t even make the long summer now to think about
J\Zfe[egfn\iK\jkDXkZ_1<e^cXe[mJi`CXebXCfi[j 2 group with 2009 semi-finalists Cardiff match-day squad, despite a striker things and hopefully come back
POOL FIVE: Biarritz Olympique, Ospreys,
<e^cXe[1+/-DGi`fi()-#8:ffb0-#<Dfi^Xe.0#J Blues, Scottish outfit Edinburgh and shortage with Wayne Rooney sus- with a new attitude.”
9ifX[,+#@9\cc,)#N\c\^\[XiX+$()) Xe[**,$-[\Z%8 Racing Metro. Saracens, Benetton Treviso pended and Andy Carroll injured, for He added: “Do I want to carry on
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Xe[().$*%<e^cXe[[i\nn`k_Ji`CXebX% Harlequins, meanwhile, will face POOL SIX: Toulouse, Harlequins, Gloucester ifying draw against Switzerland. course. I would never give up play-
Toulouse, fellow Premiership side Rugby, Connacht Rugby The striker admits he was disap- ing for my country at any stage. It’s
email sport@cityam.com Gloucester and Connacht. pointed to be have been omitted but an honour.”

Feisty Broad
still well worth
his Test place
CRICKET COMMENT
ANDY LLOYD
W
E may not have had the
explosive finish we were
treated to in Cardiff, but
Lord’s certainly provided
more positives than negatives for
England.
This is as powerful a batting
line-up as England have ever pro-
duced and they compliment each
other splendidly. With Kevin
Pietersen back in the runs the top
seven are bang in form and it
augers well for the India series.
If there is a concern, it’s that
England’s method of winning
matches seems to be rather
mechanical. Their main ploy is to
build a large first innings total
and then turn to Graeme Swann
on a deteriorating fifth day pitch.
That’s all well and good when
conditions are helpful, but that
wasn’t the case at Lord’s and they
are unlikely to be down at
Hampshire for the final Test
Chris Tremlett, Steven Finn and
Stuart Broad are almost carbon
copies of each other and that’s
amplified when James Anderson
is absent.
The Lancashire paceman will
go straight back into the side, fit-
ness permitting, and as harsh as it
might be I’d leave Finn out at the
Rose Bowl.
The statistics show he’s more of
a wicket-taking threat than Broad,
but England’s new Twenty20 skip-
per offers that natural aggression
that any attack requires.
Fifa chief Blatter’s Domingo tactic is a
wander into Alan Partridge territory
COMMENT
FRANK DALLERES
I
N the hit TV show, as Alan
Partridge becomes increasingly
desperate, his pleas for a second
series laughed off by smug TV
executives, his suggestions for new
programmes become more and more
ludicrous.
“Arm-wrestling with Chas and
Fulham have made good appointment
in Jol, says World Cup winner Cohen
Craven Cottage hero
believes Dutchman has
attributes to pick up
where Hughes left off
▲
EXCLUSIVE
BY FRANK DALLERES
FULHAM great George Cohen has
backed Martin Jol’s appointment as
manager after the Cottagers moved
quickly to hire the Dutchman as a
replacement for Mark Hughes.
Former Tottenham boss Jol has
signed a two-year contract thought to
be worth £1.5m a year and will join
up with the squad for pre-season
training later this month.
Confirmation of his arrival came
just five days after Hughes activated a
break clause in his deal and walked
away following a successful first sea-
son in charge.
And 1966 England World Cup-win-
ner Cohen (below) believes Jol has the
pedigree and skills to prove just as
popular as Hughes and his predeces-
sor Roy Hodgson.
“I think he is a good appoint-
ment. He did reasonably well
with Tottenham and got them
into the top five. He’s been
around, he knows what’s going
on, including in England,
and he’s an experi-
enced man, which
we do really need,”
Cohen told City A.M.
“I understand
he’s a very per-
sonable man,
ent husiastic,
gets on with
people – and
that’s what
you’ve got to
be able to do
Dave?” Partridge offers apologetically,
inviting derision. “Youth hostelling
with Chris Eubank?” he whimpers,
before the piece de resistance:
“Monkey Tennis?”
So pin-sharp an example of a man
vainly groping for credibility was the
scene from Steve Coogan’s comedy
masterpiece that the suggestions
have become by-words in media cir-
cles for absurd ideas.
Yet they are in danger of being
eclipsed by the latest developments at
football’s world governing body Fifa,
whose embattled president Sepp
Blatter has vowed to root out any
wrongdoing amid allegations of cor-
ruption.
In order to restore faith in Fifa,
Blatter says he intends to establish a
as a manag-
er. If you get
a team that
wants to play
for you, you’re
halfway there.
“The board
have acted very
quickly; they’ve been
very decisive. They’ve got it
right on the last two occa-
sions and there’s no reason
to suspect they haven’t got
it right here.”
Jol came close to join-
ing Fulham last summer
before they appointed
Hughes and empha-
quasi-independent so-called “council
of wisdom”, to include former FBI
chief Louis Freeh. So far, so reason-
able – if some way short of the com-
plete transparency Fifa’s critics
demand.
Things took a turn for the stranger
when Blatter announced Henry
Kissinger would join the panel, only
for the former US Secretary of State to
say he hadn’t actually agreed to any-
thing yet.
Raised eyebrows turned to outright
smirks this week, however, when
Blatter named his latest signing:
Spanish-Mexican opera singer Placido
Domingo.
Domingo, who as one of the Three
Tenors recorded the soundtrack to
the 1990 World Cup in Italy, is univer-
sised his desire to return to the
Premier League. “I’m very happy to
be back and especially at a club like
Fulham,” he said. “I could have gone
to other countries, but I was waiting
for the opportunity to come back to
England.”
Fulham return to pre-season on 23
June as the Europa League qualifying
round begins in early July, and Cohen
warns Jol will have to familiarise
himself with the squad urgently.
“He’s going to have to find out
what kind of team he wants and who
our best players are very, very quick-
ly,” he added. “He may need these
games in Europe to sort out his
league team.”
sally recognised as a distinguished
and celebrated man in his field.
But his pedigree for investigating
Fifa is unclear to say the least. His
best-known association with football
remains singing at a few tourna-
ments, while he is hardly renowned
for his crime-fighting abilities.
What made Partridge’s pro-
gramme suggestions so comic were
the farcical juxtapositions involved,
and Blatter appears to be going the
same way. For Youth Hostelling With
Chris Eubank, read Cleaning Up
Football with Placido Domingo.
Of course, none of Partridge’s ideas
ever saw the light of day. The world
waits to see whether Blatter’s own
Monkey Tennis moment will ever be
fully realised.
31
FAN’S VIEW
This is good news for all Fulham fans
everywhere. You never know what’s
around the corner – we weren’t exact-
ly going ballistic when we got Roy
Hodgson but that proved a perfect
appointment, and on the face of it this
seems to be another one.
The quality of the last three man-
agers indicates the way Fulham are
going. We’ve come so far in a short
space of time from the absolute dregs
of football, and now you can’t argue
that we aren’t an established Premier
League side. We’ve got to a European
final, we’ve had a seventh place and
now an eighth place.
A lot is to do with the state of the
Premier League – there’s a lot of mid-
dling sides there – but given that,
there’s no reason to think that if we do
improve on last year then we couldn’t
be knocking on the door of the top six.
David Lloyd is editor of the fanzine
One F In Fulham
MARTIN JOL: MANAGERIAL RECORD
1996-98 Roda JC
Won the Dutch Cup, delivering club’s first
silverware for 30 years
1998-2004 RKC Waalwijk
Won coach of year awards in 2001 and 2002
for steering club away from relegation zone
2004-2007 Tottenham
Finished fifth in successive years but sacked
after poor start to 07-08 season
2008-2009 Hamburg
Came fifth and reached semi-finals of German
Cup and Uefa Cup
2009-2010 Ajax
Dutch Cup winners and second in the Eredivisie
but quit in December while in fourth place
SPORT
ANNUAL
REVIEW OF
FOOTBALL
FINANCE
Detailed analysis of
Deloitte’s latest
report on the game
and its millions
SEE TOMORROW’S
CITY A.M.
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