Cityam 2011-06-17

Protests in Athens continued to flare yesterday, while Greek bond yields spiked during the days trading
CHAOS-HIT Greece was offered a life-

line by international lenders last
night, yet the ongoing debt crisis failed
to dampen the fears of contagion play-
ing havoc with the markets.
During the day two-year Greek
yields spiked to over 30 per cent, with
the cost of several amounts of Greek
debt hitting fresh records.
The effects were felt elsewhere in
the Eurozone, as Spanish 10-year bond
yields touched 5.73 per cent and Irish
10-year yields climbed to 11.6 per cent.
The Dax closed down 0.07 per cent
with the French Cac dropping a heavy
0.38 per cent on the day, while the
euro dropped to 1.42 against the
greenback. There are also signs that
private debt markets are being hit as
investors become increasingly wary.
The International Monetary Fund
(IMF) said it stands ready to contribute
to a 12bn (10.5bn) emergency pack-
age, along with the European Union
(EU), to delay a Greek default that
could otherwise come as early as next
month. The deal could lead to a wider
120bn bailout for the troubled
Eurozone economy.
The emergency 12bn injection is
dependent on the Greek government
passing its fiscal austerity proposals
through parliament, the IMF insisted
last night. Yet while the rescue pack-
age had been dependent on Eurozone
states agreeing to meet Greeces fund-
ing needs for the next 12 months, EU
officials said it would now accept a
political pledge of future funding, in
order to stave off a default.
Our response to the challenges we
face is stability and to stay on our
course of reforms, Greek prime minis-
ter George Papandreou told a parlia-
mentary caucus meeting called by
critics of his austerity policies.
The political drama in Athens,
where mass street protests turned vio-
lent and efforts to form a national
unity government collapsed on
Wednesday, rocked financial markets.
Yet the news coincided with accusa-
tions that the Treasury had snuck
through a further 9.2bn contribution
to the IMF. The amount would nearly
double the UKs contribution to the
fund, from 10.5bn to 19.7bn, accord-
ing to Conservative back-bench MP
Douglas Carswell, who exposed the
figures in parliament. According to
the IMFs own board minutes, we have
to pay our subscription by January
next year -- in time for them to lend on
to Greece, I presume, Carswell said.
The UK contributed 1.2bn to the
original bailout of Greece, while the
cost of rescuing the Irish and
Portugese governments has exceeded
11bn. The additional IMF contribu-
tion takes the UKs bailout bill to
21.7bn. ALLISTER HEATH: P2
FTSE 100 5,698.81 -43.74 DOW 11,961.52 +64.25 NASDAQ 2,623.70 -7.76 /$ 1.62 unc / 1.14 unc /$ 1.42 unc
Laird jumps
as it spurns
US groups
493m bid
ONE of the most famous names in
British shipbuilding has rejected a
493m bid from US firm Cooper
Industries, citing the offer as too low
and opportunistic.
Laird confirmed yesterday that its
board had unanimously rejected a
185p per share in cash offer from
across the pond, saying that it sub-
stantially undervalues the company
and its prospects.
Laird, formerly known as Cammell
Laird, was founded in 1824 as
Birkenhead Ironworks in Liverpool
and built its first ship for the British
government in 1840.
In recent years, however, the firm
has changed into an electronics and
technology company, making electro-
magnetic shields for mobile phones
and laptops.
Ohio-based Cooper, its larger rival
with a market capital $10bn and
25,000 employees compared to Lairds
staff of 50 in the UK, confirmed yester-
day that it approached the firm at the
beginning of June said it is disap-
pointed that despite its efforts to enter
into a constructive dialogue with Laird
on several occasions, the Laird Board
has stated that it is currently unwill-
ing to engage with Cooper.
Laird shot up 38 per cent yesterday,
closing at 188.90p, up 51.60p, suggest-
ing investors anticipated a higher bid
for the company.
BY KASMIRA JEFFORD
BANKING
BY JULIAN HARRIS
GREEK CRISIS
www.cityam.com FREE
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GREEK DEBT WOES
RATTLE MARKETS
ANALYSIS l Greek 2-year bond yields yesterday
%
30.5
30
29.5
29
28.5
ASCOT WIN FOR FAME AND
GLORY AT LADIES DAY
DIARY P14 PUNTER P35 SPORT P37
Issue 1,405 Friday 17 June 2011
News
2 CITYA.M. 17 JUNE 2011
Apollo set for
200m deal
BERRY Plastics, a manufacturer major-
ity-owned by US private equity giant
Apollo, is on the cusp of signing a
200m deal to acquire a bottling unit
owned by FTSE 100 packaging firm
Rexam, City A.M. has learned.
Rexam is in exclusive talks with
Berry Plastics and is poised to sign the
deal to sell a lids-manufacturing busi-
ness that it bought four years ago for
some 200m.
Those familiar with the industry
believe the sale will crystallise a loss for
Rexam on the unit, which it purchased
from Owens Illinois, an American rival,
alongside a collection of other assets
that drew a total price of $1.8bn.
Rexam updated shareholders on its
plans to sell the unit at its annual gen-
eral meeting and said it was in talks,
but did not disclose with whom.
Berry and Rexam have had discus-
sions over the sale for some months
but a source familiar with the matter
says that the deal was delayed by due
diligence issues.
Berry and Rexam were embroiled in
a legal dispute over an employee in
2008, but the case was settled out of
court. Rexam has a turnover of some
$4.6bn and derives most of its rev-
enues from selling drinks cans. Its
share price was down 0.58 per cent yes-
terday to 376p.
Rexam declined to comment.
Why Greece is the new Lehman Bros
IT is a tale of two economies and two
very different responses to catastro-
phe. Last week, the Icelandic govern-
ment borrowed $1bn on the bond
markets, paying only just over 3 per
cent interest. It is an astonishing
recovery for a country that just two
years ago was written off as a bank-
rupt, discredited pariah, its banks the
poster-boys of all that can go wrong
when a financial empire is built on
leverage but little else. The Icelandics
couldnt afford to bail out their bond-
holders so they put their taxpayers
first, only guaranteed the deposits of
their own citizens and allowed every-
thing else to go bust in 2008. It was
painful especially for foreign cus-
tomers of their banks, including in
the UK and a managed solution
would have been better but in the end
it has worked for Iceland. Sometimes,
it makes sense to give up and move on.
Contrast that to the Eurozone,
which adopted a very different, head
in the sand approach to its problems.
Several countries are in trouble, gov-
ernment debt is the new sub-prime
and Greece looks like it could be the
Lehman of nation-states, its default
triggering a freeze in the markets, a
domino-style collapse of other coun-
tries and a severe economic fallout,
including for the UK.
The Greek problem is different to
Icelands or even Irelands: it is entire-
ly about public sector debt, which is
rocketing at a time when the econo-
my is shrinking. There is no real hope
of Greece ever being able to repay
what it owes so the real strategy being
pursued by the EU is to try and delay
the inevitable as long as possible to
allow the European financial system
to build up reserves before the
unavoidable, crippling write-offs.
As Investec points out, the authori-
ties aim is for any bailout to involve
the private sector; for the rates
payable by Greece to be not so high as
to force it into insolvency; that the
terms do not result in a credit event
or a default being declared such that,
for example, ratings agencies are
happy that there has been no coercion
behind the involvement of investors
buying rolled over bonds. The absence
of a technical credit event would also
avoid triggering credit default swaps,
the insurance-style contracts that pay
out in the event of a default (and that
during the previous crisis infamously
destroyed AIG, which hadnt bothered
to put enough money aside to pay out
on its policies).
A full Icelandic solution a unilat-
eral, non-negotiated default a la
Lehman would be a disaster. The
markets would implode yet again, a
development which would badly
affect London. But cajoling the IMF
into handing over another tranche of
bailout cash by promising (rather
than actually delivering) austerity
Athens strategy will merely buy
time (and also cost UK taxpayers a for-
tune). It would allow Athens to meet
Julys coupon and Augusts redemp-
tion payments but would have no
structural effect. What the Eurozone
finance ministers should really be
talking about now is how to structure
an orderly, partial Greek default, com-
bined with its exit from the euro. If a
credible, well-managed solution were
put into place, it may still be possible
to avoid or at least mitigate the impact
of contagion to other weak nations.
Merely delaying the inevitable and
eventually ending up with an even
larger collapse involving several coun-
tries will go down as a historic blun-
der and prove that nobody ever learns
anything from economic crises.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
A HANDFUL of depositors in a
Portsmouth-based bank, which was
dissolved yesterday, will be the first to
lose some of their savings, days after
the chancellor signalled he would get
tough on depositors.
Southsea Mortgage and Investment
went under, leaving 250 savers asking
for their money back from the gov-
ernments guarantee scheme. The
Financial Services Authority and the
Bank of England have intervened and
initiated the Special Resolution
Regime where distressed banks are
forced into insolvency.
The banks savers, with a total of
7.5m retail deposits, are covered by
the 85,000 limit insured under the
financial services compensation
scheme (FSCS). But 14 customers hold
more than the 85,000 limit, and will
be the first to lose some of their sav-
ings after George Osborne pledged to
take a tougher stance on despositors
in his Mansion House speech.
BY KASMIRA JEFFORD
BANKING
Bank depositors lose cash

Chancellor George Osborne said on Wednesday he would get tough with depositors
NEWS | IN BRIEF
US votes to stop ethanol support
The US Senate voted overwhelmingly
last night to eliminate billions of dollars
in support for the ethanol industry, send-
ing a strong message that the era of big
taxpayer support for biofuels is ending.
The increasingly hostile attitude toward
federal ethanol support has added fuel
to a steep fall this week in the price
of corn, from which most US ethanol is
made. The 73-27 vote to halt the $6bn
(3.7bn) a year ethanol subsidies
reflects the push by both parties to rein
in the government's huge deficit, though
the decision must pass several hurdles
before becoming final.
India raises its repo rate again
The Reserve Bank of India tightened its
monetary policy again yesterday, raising
the repo rate by 0.25 per cent to 7.5 per
cent. It was the 10th time since March
2010 that rates have been hiked, with
the Bank saying it will persist with its
battle against inflation, even as growth
slows in Asia's third-largest economy.
India's latest rate increase follows on
the heels of recent tightening in China
and Brazil, and measures are taken to
stop emerging economies overheating.
EDITORS LETTER
ALLISTER HEATH
7
th
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24 Monument Street, London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
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Commission. The PCC takes complaints about the
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Rexam, led by chief
executive Graham
Chipchase (pictured), is
selling a bottle lid
manufacturing unit.
BY JULIET SAMUEL
EXCLUSIVE
BOLTONS CHINA FUND SUFFERS

Anthony Bolton, the feted fund man-
ager at Fidelity International, has suf-
fered a stumble with the poor
performance of his new flagship
China fund this year. Mr Boltons
China Special Situations fund raised
460m ($743m) when it launched
with much fanfare on the London
Stock Exchange last April. But in the
year to date, shares in the fund have
dropped 20 per cent, a much sharper
fall than the broader Shanghai and
Hong Kong markets. Over the same
time, the net asset value of the fund
dropped 14.4 per cent.
BIGGEST BANKS FACE NEW CAPITAL
CLAMPDOWN
Global regulators are poised to set a
new tiered regime of additional capi-
tal requirements for about 30 of the
worlds biggest banks, in the latest
effort to ensure the next financial cri-
sis can be contained. The regulators
plan to place each institution into a
bucket carrying a particular sur-
charge based on bank size, global
reach, structural complexity and
whether other banks could absorb its
business. Banks could move between
categories as their size, structure and
risk appetite change.
OCH-ZIFF BUYS $12BN OF OPTIONS ON
US EQUITIES
Och-Ziff, the worlds fifth-largest
hedge fund, took out more than
$12bn of options on US equities in
the first quarter in an apparent bet to
profit from a rise in market volatility,
according to regulatory filings. The
move comes as many of the worlds
most sophisticated money managers
look to dial down risk as expectations
for a market correction or a period
of turbulence over the summer take
hold. Large hedge funds were hit by
rocky markets in May and the begin-
ning of June and some have begun to
scale back their bullish positions.
NYSE EURONEXT STRENGTHENS BOND
WITH LCH.CLEARNET
NYSE Euronext has extended its con-
tract for clearing services with
LCH.Clearnet ahead of a possible
takeover of the Anglo-French busi-
ness. NYSE Euronext said last night it
had pushed back to 2013 the date at
which it would stop using LCH to
clear its European equities and deriv-
atives trades, a year later than it had
previously planned to terminate its
contract.
VON ESSEN BOSSES RESTRICTED
ACCESS TO ACCOUNTS
Ernst & Young still doesnt know how
much is owed: Senior management of
von Essen Hotels obstructed attempts
by Ernst & Young to carry out an inde-
pendent business review for its banks
after the company first breached its
covenants in January, according to a
report to creditors.
AMERICANS RETURN TO PESSIMISM
ABOUT US ECONOMY
A poll for The Wall Street Journal/NBC
found that 30pc of Americans ques-
tioned expect the economy to deterio-
rate over the next year, with 29 per
cent predicting an improvement.
Although its a small difference, econ-
omists say it reflects the cumulative
effect of high gasoline prices, a still
depressed housing market and the
uneven recovery in the jobs market.
GOVERNMENT ADMITS IT ONLY HAS
HALF THE MONEY FOR SUPERFAST
BROADBAND
Jeremy Hunt, the Culture Secretary,
has revealed for the first time that the
government has only set aside half
the money needed to roll out super-
fast broadband in rural communities.
In a letter to MPs yesterday he admit-
ted that another 530m needs to be
provided.
BOEING SEES RISING AIRCRAFT
DEMAND
Boeing Co. said yesterday it is raising
its forecast for the global commer-
cial-aircraft market over the next 20
years by eight per cent, and now
expects demand for 33,500 aircraft
worth a total of $4 trillion. Boeings
previous long-term market forecast a
year ago was for 30,900 new com-
mercial aircraft worth $3.6 trillion.
FORD RAMPS ASIAN CAR PLANS
Ford Motor Co. believes it can earn a
competitive return in China and
India even as it rolls out a string of
new cars in those markets that will
sell for much lower prices than the
vehicles it sells in North America
and Europe. Over the next four
years, Ford plans to expand to 15
from five the number of vehicles it
sells in China. Some of the new cars
will sell for less than $14,500.
WHAT THE OTHER PAPERS SAY THIS MORNING
News
THE government has said that con-
cerns over potential duplication and
confusion between the new regulatory
bodies it is creating will have to be
resolved once they are established.
In a white paper and accompanying
draft legislation published yesterday,
the Treasury said that a worry about
duplication was one of the most com-
mon responses in its consultation on
its initial proposals to create three new
regulatory bodies.
But the Treasury concluded: The
government does not believe that it
would be appropriate to set out opera-
tional matters for the Prudential
Regulation Authority and Financial
Conduct Authority in primary legisla-
tion.
Instead, the new bodies will be given
a mandate to coordinate their actions
so as to minimise the burden for firms
once they are established.
Over time, the regulators will devel-
op their own regulatory culture and
approach to engagement with firms,
the white paper says.
Those consulted on the previous
draft had suggested that the legislation
established a shared gateway that
would be firms primary point of con-
tact with regulators, but the Treasury
chose not to pursue the idea.
Concerns over duplication go unaddressed
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CASES of mis-selling by financial firms
such as the recent payment protection
insurance debacle will be fast-tracked
by new regulators under plans
unveiled by the Treasury yesterday.
Draft legislation to go through par-
liament next year will set up the
Financial Conduct Authority (FCA), to
be in charge of protecting consumers
and policing firms -- and will have the
power to deem some cases of wide-
spread misconduct as causing serious
consumer detriment.
In such cases it will be able to fast-
track complaints or take pre-emptive
action to prevent misconduct and
requiring firms to put in place a con-
sumer redress scheme such as expe-
dited compensation pay-outs.
In addition, the FCA is to gain a
wide range of powers to promote com-
petition for consumers benefit, and
will be able to kick off Office of Fair
Trading investigations into a variety of
potential ills, such as barriers to entry.
Overall, the FCA will have a lower
risk threshold for potential consumer
detriment, a spokesperson from the
Treasury said yesterday.
Protecting consumers has priority
BY JULIET SAMUEL
REGULATION
THE City is facing years of uncertainty

after the Treasury unveiled legislation
to put in place three new regulators
that will have powers to stop any busi-
ness activity they deems too risky and
apply different rules to different firms
depending on their risk profile.
A white paper, published yesterday,
sets out the governments plans to
abolish the FSA and replace it with
three new authorities, which will sit
under the Bank of England, making
governor Mervyn King one of the most
powerful regulators in the world.
Most financial firms will be subject
to the Financial Conduct Authority,
which will have a range of new tools
such as a new power to intervene to
impose requirements on (or even to
ban) products and a strengthening of
the FCAs ability to tackle misleading
financial advertisements. It will alter
the rules it applies depending on how
risky it deems each firm.
But more serious, say observers, is
the additional uncertainty that the
City will face even as it struggles with a
raft of new regulations governing cap-
ital, liquidity, pay and bankruptcy
regimes. Pinsent Masons Tim Dolan
says of the white paper:
Unpredictability will be an issue for
firms going forwards and thats not a
good thing but theres no other way
to do it right now.
The new bodies will not be in place
until early 2013, after which, Dolan
adds, it will take at least a couple of
years for them to settle down.
During that period there will be some
instances of regulators radically chal-
lenging firms and products, he says.
That unpredictability could be exac-
erbated by the new macro-prudential
regulators responsibility for identify-
ing where the economy is in its cycle
and taking countercyclical actions to
mitigate its highs and lows. The regula-
tors powers could vary throughout
the cycle.
The City to
face years of
uncertainty
THE new Financial Conduct Authority
(FCA) will have the power to name and
shame firms before they have been
found guilty of any wrongdoing, as
revealed by the governments draft leg-
islation for a new financial regulatory
regime.
But those accusing the firms of mis-
conduct will not be named, which City
lawyers have said goes against normal
judicial procedure.
Robbie Constance of law firm
Reynolds Porter Chamberlain said:
These reforms set out to improve
transparency, yet create inequality.
Were the case heard in court both par-
ties would be named.
The FCA will have the power to make
public the fact that enforcement action
has been started against a firm even if
no action ends up being taken.
Name and shame power
Bank governor Mervyn King
BY JULIET SAMUEL
REGULATION
BY JULIET SAMUEL
REGULATION
BY JULIET SAMUEL
REGULATION
FOCUS ON| NEW REGULATORY REGIME

MEET THE CITYS
NEW REGULATORS
THREE NEW BODIES
The tripartite regulatory system, in which
the Bank of England, the FSA and the
Treasury governed the City, is to be abol-
ished. It will be replaced by three new bod-
ies: the Financial Policy Committee (FPC),
the Prudential Regulation Authority (PRA)
and the Financial Conduct Authority (FCA).
FINANCIAL POLICY COMMITTEE
The FPC, to be headed by the Bank of
England governor, will be a powerful new
authority sitting at the apex of the regula-
tory architecture. The short of it is that
the FPC will be at the same hierarchical
level as the Monetary Policy Committee
(MPC) but will be in charge of monitoring
systemic risk and decreeing macro-eco-
nomic responses such as a tightening of
credit if it deems the economy to be enter-
ing a bubble. It will delegate responsibility
for enforcing these measures on individual
firms to the Prudential Regulation
Authority (PRA).
PRUDENTIAL REGULATION
AUTHORITY (PRA)
The PRA, to be led by current FSA chief
Hector Sants, will sit outside the Bank but
will be a subsidiary subject to the FPCs
authority. It will both monitor firms and
feed information back to the FPC to create
a complete macro-economic picture of the
financial landscape. The Treasury is keen to
stress that it will not take a box-ticking
approach and will be intensive and intru-
sive if necessary. It will also have the power
to adopt different approaches for different
firms depending upon their risk profile.
FINANCIAL CONDUCT AUTHORITY
This body, which will act as a consumer
watchdog, will sit outside the Bank but will
be subject to its authority. Its main role
will be to police firms and intervene to stop
them from exploiting consumers.
CULTURE
Overall, the Treasury claims the new sys-
tem will generate a judgement-based
approach, with regulators applying princi-
ples rather than rule books.
TIMELINE
The aim is to pass the legislation next year
after cross-party consultation and have the
bodies in place at the start of 2013.
EMILIO Botin, the chairman of
Santander, the Eurozones largest
bank, and his family face a probe into
their tax affairs, Spains High Court
said yesterday.
An official investigation into the
tax contributions of brothers Emilio
and Jaime Botin, along with their 10
children, was opened before the case,
which dates back to 2005, exceeded
the period allowed by the statute of
limitations.
The Botin family, whose deposits at
a Swiss private banking division
caught the eye of the tax authorities
after a massive leak of private bank-
ing data from the unit, have present-
ed declarations to prove their tax
situations are normal.
Given the impossibility of evaluat-
ing the declarations within the time
period, the investigation is neces-
sary, investigating judge Fernando
Andreu said in a statement.
Judge Andreu said the total
amount of potentially unpaid taxes
being investigated is over 120,000,
but noted that if the declarations pre-
sented by the family are bona fide,
the case will be dropped.
One of the Botin family being
investigated, Ana Patricia Botin, is the
head of Santanders UK banking unit.
A spokesman for the family said
the Botins had voluntarily submitted
all the necessary fiscal information.
Santander chairman and
family face a tax probe
BY HARRY BANKS
BANKING
News
Emilio Botin (pictured, top) faces an enquiry into his familys tax affair, including Ana
Patricia Botin, head of Santanders UK banking unit, and Jaime Botin (both pictured).
BLACKBERRY maker Research In
Motion said yesterday its quarterly
profit dropped and revenue missed
its lowered forecast, forcing the firm
to slash its outlook and send its
shares sharply lower.
The Canadian company, facing ris-
ing competition for its smartphones
and under pressure after a botched
launch of its PlayBook tablet com-
puter, shipped 13.2m BlackBerrys in
the three months to 28 May.
It shipped 500,000 PlayBook
tablets in the six weeks after the
launch, exceeding the average ana-
lyst forecast of 366,000.
But it said the tough conditions
that pushed it to warn on profits in
April were likely to persist.
Fiscal 2012 has gotten off to a
challenging start. The slowdown we
saw in the first quarter is continu-
ing into Q2, and delays in new prod-
uct introductions into the very late
part of August is leading to a lower
than expected outlook in the second
quarter, co-chief executive Jim
Balsillie said in the earnings state-
ment.
RIM said it expects earnings in the
current quarter of between 75 cents
and $1.05, sharly lower than the
already pessimistic average view of
$1.40, on revenue between $4.2bn
and $4.8bn.
It slashed its earnings outlook for
the fiscal year to late March to
between $4.25 and $6 a share, from
$7.50.
The company made a net profit of
$695m, or $1.33 a share, on revenue
of $4.9bn. Analysts had expected
profit of $1.32 a share on revenue of
$5.1bn.
RIM is in this situation because
its phones arent competitive and
they're not competitive because
they've fallen behind on develop-
ment and product cycle, said
Charter Equity analyst Edward
Snyder. Now they need to acceler-
ate the models to market, but at the
same time they are cutting staff.
Research in
Motion sales
take a tumble
Prada is set for choppy debut
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ITALIAN fashion house Prada is set
for a bumpy entrance to the Hong
Kong stock market this morning,
after pricing at HK$39.50 per share
last night according to a source
familiar with the float.
Prada had earlier set an indica-
tive range of HK$36.5-$48 per share,
seeking to raise up to $2.6bn, but
trimmed its final float price.
Prada became the second major
company in a week to scale back
capital raising expectations in
Asias top IPO destination because
of volatile global markets.
The firms investors anxiously
watched peer Samsonite lose 11 per
cent on its debut yesterday, and
hope to fare better in Hong Kong
trading today.
The equity market has its own
life and may not have anything to
do with reality in luxury goods mar-
kets, said Selina Sia, head of con-
sumer research at Mirae Asset in
Hong Kong.
Luxury demand is very self
explanatory and it makes a lot of
sense for companies like Samsonite
and Prada to list in Hong Kong, but
were talking about quite a volatile
market these days.
The benchmark Hang Seng Index
has declined in 10 of the last 11 ses-
sions, down 7.3 per cent, and world
stocks hit a three-month low yester-
day, weighing on investor demand
for new stock sales.
At the revised price, Prada will
trade at a price to earnings ratio of
of 22.8-24.4 times, in line with glob-
al rivals.
BY HARRY BANKS
CONSUMER
BY HARRY BANKS
CONSUMER
ING Groep NV has agreed to sell its

US online banking business to
Capital One Financial for $9bn
(5.6bn), the company announced
last night.
The Dutch banking and insurance
conglomerate said in a statement
that Capital One will pay $6.2bn in
cash and $2.8bn in shares to buy ING
Direct USA.
Capital One, ranked among the
top 10 US banks by deposits, will
own a 9.9 per cent stake, making it
the largest single shareholder in the
company.
ING said it will focus on further
building its remaining ING direct
operations in Canada, Australia and
Europe.
Shares in ING NV, listed on the
New York Stock Exchange, were up
0.09 per cent to $11.29 last night.
Capital One agrees to buy
US online branch of ING
BANKING
News
VALLARES FILLS ORDER BOOK AHEAD OF IPO
Former BP boss Tony Hayward (pictured) has closed order books early for the listing of his
oil acquisition vehicle and will raise an increased amount of at least 1.2bn, sources close
to the deal said. Books on the offering will now close this week, instead of 20 June as orig-
inally planned. Hayward and financier Nathaniel Rothschild announced last week they
planned to list their venture Vallares in the London market.
THE Guardian yesterday announced it
will adopt a digital first strategy
that will see its online activity take
precedence over print editions.
Editor-in-chief Alan Rusbridger said
the firm will shift focus, effort and
investment towards digital, because
that is our future.
The paper said that while print
remains critical, the strategy will
involve changes to its newspapers over
time and investment in digital initia-
tives such as a new US base.
Despite the swing towards digital,
income from Guardians new media
operations is expected to be just
37m, rising by around 10m in the
current financial year.
The announcement comes as circu-
lation at the Guardian and Observer
continues to fall and operating losses
continue to mount. Losses for the year
are expected to be in line with last
years 34.4m. Guardian News and
Media (GNM) is also expected to
announce its turnover has also fallen
23m to 198m.
Guardian boasts around 50m
unique online users every month.
Rusbridger added: Every newspa-
per is on a journey into some kind of
digital future. That doesnt mean get-
ting out of print, but it does require a
greater focus on digital.
Guardian shifts
to digital but still
set to lose 34m
BY STEVE DINNEEN
MEDIA
ED Balls, the shadow chancellor, yes-

terday called for an emergency VAT
cut to boost the economy.
In a lecture at the London School
of Economics, Balls urged chancellor
George Osborne to reverse VAT tem-
porarily until the economy is grow-
ing strongly again.
He said: When the last Labour
government temporarily cut VAT to
15 per cent for 13 months, [Osborne]
dismissed it, saying people wouldnt
even notice.
He may not have noticed but at
the end of each month, millions of
families did see extra money in their
pockets, and thousands of businesses
saw the difference in their bottom
line.
He added: A VAT cut is not like a
National Insurance rebate or a spend-
ing cut it is more money in your
pocket at the end of a shopping trip.
George Osborne raised VAT from
17.5 per cent to 20 per cent in his first
Budget as chancellor. It was his
biggest deficit reduction measure,
netting the exchequer almost 54bn
over the course of the parliament.
Nick Clegg, the deputy prime min-
ister, hit out at Balls for proposing
the emergency VAT cut, insisting
Labour was perilously close to per-
manently and terminally losing the
British taxpayers trust on the econo-
my.
Proposing an un-funded tax cut is
a politically risky move for Balls, but
he insisted he was not a deficit
denier and said he had a history of
fiscal prudence.
Labour has work to do to restore
our political credibility, but part of
that is setting out alternatives to the
vicious circle of cuts and tax rises,
he said in a question and answer ses-
sion following his lecture.
We would take a more balanced
approach to getting [the deficit]
down in a more steady way, he said.
We wouldnt raise the tax that
has the biggest impact on spending
while confidence is so fragile.
Balls calls for
a temporary
VAT reduction
THE Wests energy watchdog the IEA
upped the pressure on producer club
Opec to increase output by forecast-
ing a steep rise in oil demand later
this year and predicting the strain on
supply would last over the medium
term.
Oil prices rose in response to the
latest sets of numbers from the
International Energy Agency. Brent
crude hit a session high of nearly $115
a barrel on yesterday, up almost $2.
The Paris-based adviser to 28 con-
sumer countries raised its assessment
of how much OPEC oil would be need-
ed this year by 400,000 barrels per day
(bpd) to 30.1m bpd in a monthly
report.
Data from the Organisation of the
Petroleum Exporting Countries has
also indicated a need for more oil in
the second half of this year.
But the group failed to agree on an
output increase at a meeting in
Vienna last week and its secretary
general took exception to public com-
ment from the IEA, which has said it
would release oil from emergency
reserves if necessary.
Strategic reserves should be kept
for their purpose and not used as a
weapon against Opec, Opec boss
Abdullah al-Badri said.
Energy body
urges Opec to
pump more oil
BY DAVID CROW
POLITICS
OIL & GAS
News
WHEN Ed Balls delivered his
Bloomberg speech during the Labour
leadership contest, he used the word
"double-dip" five times. Although he
was too clever to predict a second
recession, he waxed lyrical about those
who did.
He also distanced himself from the
other hopefuls by hitting out at former
chancellor Alistair Darling's plan to
halve the deficit over four years. "I
told Gordon Brown and Darling in
2009 that whatever the media
clamour at the time even trying to
halve the deficit in four years was a
mistake," he said.
Yesterday was Balls' first big lecture
since becoming shadow chancellor,
and he used it to shift his position on
both those issues.
On the chances of a second reces-
sion, he said "I have been consistent in
saying that a double-dip recession was
never the most likely outcome". From
now on, he will claim that any
growth anaemic or otherwise
would have been more full-throated
had the chancellor scaled back the size
and speed of his spending cuts.
Second, Balls will say that he does
support a four year deficit reduction
plan but not the spending cuts and
tax rises that Darling was planning.
Balls will claim that measures like
the 2.5 per cent VAT cut he has called
for would actually boost jobs, spend-
ing and growth by so much as to off-
set any up-front cost. Ironically, that
makes him sound like a supply-side
reformist, although he is anything but.
ANALYSIS | BALLS REWRITES RECENT HISTORY
Ed Balls at the London School of Economics yesterday
ALMOST 40 per cent of UK companies
say they are unprepared for the
implementation of the Bribery Act at
the beginning of next month, with
many saying even their top board
members are not ready for the new
rules.
One in six companies surveyed for
a Thomson Reuters survey admitted
they had not discussed the incoming
legislation with senior executives,
despite the deadline for compliance
looming just two weeks from today.
Thirty-nine per cent of those
polled said they needed more time to
prepare for the act, which will intro-
duce wide-reaching new anti-corrup-
tion rules to the UK, while a
worrying one in five said they were
unlikely to meet the deadline at all.
Top-level commitment is one of
the six principles for compliance
identified by the Ministry of Justice,
yet according to the survey only one
in three firms with an overseas par-
ent board had thought it necessary
to discuss the new rules with its
board members.
While 53 per cent of companies
said they thought they were on track
to meet the 1 July deadline, just eight
per cent said they felt completely pre-
pared.
Companies unprepared
for imminent Bribery Act
Only eight per cent of firms are ready to comply with Ken Clarkes Bribery Act
BY ELIZABETH FOURNIER
REGULATION
News
NEWS |
IN BRIEF
Lehman ups payback
Lehman Brothers Holdings
is increasing to $65bn
(40.3bn) its estimated
payback for creditors, a
company spokeswoman
said last night. The figure
represents a $5bn increase
from the $60bn Lehman
forecast in January, they
added. Lehman hopes to
begin making distributions
to its creditors during the
first quarter of 2012.
Lehman filed the biggest
bankruptcy in US history in
September 2008, listing
$639bn in total assets. The
company and the two com-
peting creditor groups have
each proposed a plan for
how to divvy up the
remaining assets between
creditors.
Areva boss steps down
The chief of French nuclear
group Areva, Anne
Lauvergeon, is standing
down, after the govern-
ment said it planned to
replace her amid controver-
sy over the firms manage-
ment. She will be replaced
by Luc Oursel, a board
member. Rivals to Areva
have recently complained
about the companys oper-
ating style, and called for
the state-owned firm to be
broken up.
Glencore loses auction
Japanese trading house
Itochu has pipped Glencore
in an auction to buy a hold-
ing in Drummonds
Colombian coal operations.
In a blow to the newly-list-
ed FTSE 100 firm, Itochu
successfully bid $1.5bn to
beat Glencores offer for a
20 per cent stake in the
plants and a chance to
profit from Asias growing
demand for thermal coal.
Maple reaches out
A Canadian consortium of
banks, pension funds and
investment firms that
hopes to acquire the opera-
tor of the Toronto Stock
Exchange ramped up its
sales pitch to shareholders
yesterday with full page
ads in Canada's two nation-
al newspapers. The Maple
Group reached out to TMX
Group shareholders in a let-
ter published in two news-
papers to lure investors
away from a deal with the
London Stock Exchange.
2011
Make sure you
don't miss
the short-lists
for the
City A.M.
awards 2011
which will be
published in
the paper
starting on
Monday. The
awards
celebrate and
reward the
most
impressive
people and
companies in
the City. The
Personality of
the Year
finalists are
first up.
l Get in
touch via the
cityam.com
web-site
to book tickets
for the event
itself which is
on 21
September.
www.cityam.com
BRITAINS new financial super-regu-
lator met for the first time yesterday,
led by a range of the Bank of
Englands most senior officials.
The Financial Policy Committee
(FPC) kicked off its role as a key advis-
er on developments in the Citys
banks, created in the wake of the
financial crisis.
The FPC aims to deal with that
problem by expanding the range of
instruments available to the author-
ities, explained the Banks Mervyn
King this week.
The group will extend the aim of
financial stability to the Bank of
Englands remit, alongside price sta-
bility, already determined by the
monetary policy committee (MPC).
It will work alongside the also new
Prudential Regulation Authority
(PRA), which is tasked with identify-
ing problems at specific banks.
King said that the two groups
would tackle the problem of banks
being too important to fail, and
thus a burden on UK taxpayers.
Internal members of the commit-
tee include governor Mervyn King,
deputy governors Charles Bean and
Paul Tucker, and Paul Fisher.
Andrew Haldane, the Banks exec-
utive director of financial stability,
completes the internal section of the
committee, along with former Bank
of England official Alastair Clark.
The Banks contingent will be
joined by American Donald Kohn,
previously of the US Federal Reserve.
Adair Turner and Hector Sants
from the Financial Services
Authority (FSA) will also sit on the
committee, as well as Michael Cohrs,
formerly of Goldman Sachs and
Deutsche Bank.
The committees first report will
be published on 24 June, with the
committee meeting four times a
year thereafter.
First meeting
for the Banks
new regulator
BY JULIAN HARRIS
REGULATION
RETAIL shareholdings soared to their

highest level since the start of the
financial crisis in May, following four
quarters of net buying, research out
today shows.
Private shareholdings reached
237bn last month, said Capita
Registrars, with 798m net added to
the holdings between March and May.
In total, private investors traded
1.4bn between March and May, the
busiest two-way trading period since
last summer.
The surge of interest in equities for
private investors is due to the paltry
interest rates on other savings options
and a renewed appetite for risk, Capita
Registrars chief Charles Cryer argued.
Private investors have recognised
equities offer protection against infla-
tion, the prospect of growth, and a
superior income to many other assets.
Its no wonder they have been pouring
their savings into shares, he said.
Private investors owned 11.7 per
cent of the equities market last
month, up from a record low of 10.9
per cent last year.
Private investors pour savings
into equities in record numbers
EQUITIES
News
Paul Tucker of the Bank of England Fellow Bank deputy Charles Bean Head of the Bank of England, Mervyn King Paul Fisher, also of the Bank of England Financial stability chief Andrew Haldane
The Financial Policy Committee kicked
off the first of its quarterly gatherings
THE plight of the UK consumer
returned to the fore yesterday as new
official data showed retail sales
slumped more than twice as much as
anticipated in May.
Retail spending dropped off sharply
with the end of Aprils sunny weather
and public holidays, leaving sales
down 1.4 per cent in May, or 1.6 per
cent when petrol sales were excluded.
Sales fell from a 1.1 per cent growth
in April and were dramatically below
expectations of an 0.6 per cent
increase for May.
Economists blamed a combination
of job insecurity, poor wage growth
and high inflation for peoples reluc-
tance to spend. They said the figures
added to expectations that the Bank of
England would delay raising interest
rates for months to come.
These figures are in line with the
state of the wider economy and paint a
more realistic picture of the subdued
consumer sentiment, said Nida Ali,
economic advisor to the Ernst & Young
Item Club.
The figures chime with trading
updates from supermarkets Tesco and
Sainsbury this week showing shoppers
cut back on purchases as high fuel
prices reduced their spend.
The ONS data showed food sales
falling 3.5 per cent in May compared
with May 2010, while clothing sales
grew at 1.1 per cent year-on-year.
We y 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.
London to
Copenhagen
from
single
inc. taxes
33
.99
High street gloom twice
as bad as expected...
BY ALISON LOCK
ECONOMY
News
Retail sales came back down to earth in May, with a monthly drop of 1.4 per cent
Retail sales fell
1.4%
Year-on-year
sales were up
0.2%
IN NUMBERS: RETAIL SALES
Year-on-year food
store sales fell
3.5%
Analysts
expecteda rise of
0.6%
LUXURY handbag-maker Mulberry
said it expected overseas sales to over-
take those in the UK within two years
yesterday, as it beat forecasts with a
358 per cent leap in pre-tax profit.
Revenues from sales of its sought-
after handbags and purses jumped 69
per cent to 121.6m in the past year,
while profits rose to 23.3m as it
focused on international expansion.
Mulberrys shares closed 8.6 per
cent higher after it outlined its poten-
tial for growth in China and the US.
Probably in the year after next the
sales to the rest of the world will
exceed the UK and that trend will
continue, chief executive Godfrey
Davis said. We have two shops in
New York so theres quite a lot of the
United States to go at, weve got one
shop in Beijing so theres quite a lot of
China to go at.
Davis said he expected to open at
least 12 new overseas stores in the
2011-12 year, including in the US,
South Korea, China, Germany,
Switzerland and Austria.
The results were ahead of the con-
sensus forecast for 21.5m pre-tax
profit. Shares in Mulberry have risen
nearly sixfold over the past year and it
now has a greater market capitalisa-
tion than the combined total of strug-
gling British high street retailers
Dixons, HMV and Game.
The global luxury goods market
defied the gloom to hurt the rest of
the retail sector.
...but global
boom gives
Mulberry lift
SAMSONITE International, the
worlds biggest luggage maker, has
dropped 7.6 per cent in its first day of
Hong Kong trading, underscoring
tepid investor appetite for initial pub-
lic offerings as the markets struggle.
Samsonites slump yesterday is the
latest in a string of weak Hong Kong
IPO performances as Chinas strong
growth shows signs of weakening.
Of course you have to attribute
that to the weak sentiment in the
market and in the meantime people
wont be too interested in IPOs, said
Alex Wong, a director with Ample
Finance Group.
Samsonite saw its shares close at
HK$13.38 yesterday and trade as low
as HK$12.96.
Despite the poor debut,
Samsonites chief executive Tim
Parker said in a ceremony at the stock
exchange that he is optimistic about
the long-term outlook for the stock
and expansion in fast-growing Asia.
The markets are very volatile at
the moment, so I feel this is a pretty
good way to open actually. Im not at
all displeased, said Parker.
The company and shareholders,
including private-equity firm CVC
Capital Partners and Royal Bank of
Scotland, sold 671.2m shares to raise
HK$9.73bn (773m).
Samsonite falls
on Hong Kong
trading debut
BY ALISON LOCK
RETAIL
RETAIL
News
CITYA.M. 17 JUNE 2011 11
ANALYSIS l Mulberry
p
21 Mar 8Apr 4May 24May 14Jun
1,650
1,450.00
16 Jun
1,550
1,450
1,350
1,250
Mulberry is still small in Asia
the luxury sectors gold rush town
IT is rare for a company to perform
quite so spectacularly on almost
every count. Group revenue was up
almost 70 per cent; pre-tax profit
was up an unbelievable 358 per
cent; the gross margin jumped 640
basis points to 65.4 per cent. Its cash
pile is almost twice the size at
21.4m. We could go on.
The current year is also going
swimmingly. In the ten weeks to
June, retail sales had already
jumped 38 per cent with like-for-
like revenues up 42 per cent.
Perhaps most exciting is the
firms growth prospects. Asian sales
of 14.8m account for just 12 per
cent of overall revenues; compare
that to Prada, which gets around a
fifth of sales from Macau, Hong
Kong and China alone, and you can
see that Mulberry has a lot of room
to grow in the luxury sectors equiv-
alent of a gold rush town.
Its decision to appoint Melissa
Ong, a veteran of the Asia luxury
sector, as a non-executive director
shows that it is serious about mak-
ing a go of it.
Yesterday, the shares closed at
1,450p, 10 per cent below their peak
at the end of April. We think 2,000p
is in sight.
BOTTOMLINE
Analysis by David Crow
The luxury goods stores pre-tax profits rocketed by an eye-watering 358 per cent
A CONTRACT IS SIGNED
IN LONDON. BY 10:30 AM THE
NEXT DAY IT TOUCHES DOWN
IN WALL STREET.

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RUSSIAN firm Global Ports has priced
its London initial public offering (IPO)
at a deep discount, as it looks to raise
up to $572m (355m).
The container terminal operator, a
unit of Russian freight group N-Trans,
set a price range of between $14.70
and $16.10 per global depository
receipt (GDR).
The list price puts shares in the
company at a 28 per cent discount to
the mid-point of a recent valuation
made by analysts, in the latest indica-
tion of the lengths firms are prepared
to go to in order to successfully list.
Londons faltering IPO market has
dashed the listing plans of several
Russian companies in recent months,
including Kremlin-backed aerospace
firm Russian Helicopters.
The high hit-rate of failed floats has
been blamed on a mismatch between
management expectations and the
appetite of investors.
Investors are however said to be
keen on Global Ports, given the track
record of its owners.
N-Trans has successfully listed in
London before, having floated its rail
freight unit Globaltrans in 2008.
Globaltrans currently trades at about
40 per cent above its listing price.
The company in an interesting
sector, with plenty of spare capacity
and scope to grow, a fund manager
with knowledge of the float told City
A.M..
N-Trans will sell existing shares,
while Global Ports itself is eyeing pro-
ceeds of about $100m in new shares
to be sold in the float.
The owners of the company, which
runs five container terminals across
Russia and Finland, also hold an
over-allotment option to take the
total proceeds of the share sale up to
$629m.
Global Ports chairman Nikita
Mishin said: By listing in London our
aim is to provide investors with access
to a fast-growing industry in one of
the worlds most attractive emerging
economies.
Russian port
owner prices
discount float
QATARI conglomerate Aamal has con-
firmed it will pull its $600m (371m)
London share sale, as first reported in
City A.M. yesterday.
The $2.4bn-valued company
blamed the continuing
unfavourable new issues market envi-
ronment for its failure to list.
Aamal is said to have been unable
to attract the valuation it had hoped
for from investors, according to
sources.
It becomes the latest in a string of
failed London floats, amid a crippling
City war over the pricing of IPOs.
The company, which owns a range
of industrial businesses in the Middle
East, had looked to float up to 24 per
cent of its share capital on the
London Stock Exchange in the form
of global depository receipts (GDRs).
Aamal expects to review the tim-
ing for its planned GDR offering in
due course, subject to market condi-
tions, the firm said.
Aamal confirms
pulled 400m
share offering
Global Ports chairman Nikita Mishin is hoping for a successful IPO
BY RICHARD PARTINGTON
CAPITAL MARKETS
CAPITAL MARKETS
News
MARINA Kraschenko is advising N-
Trans on its plans to list Global Ports for
German lender Deutsche Bank.
The bank is acting as joint bookrun-
ner and global coordinator alongside
Morgan Stanley, Goldman Sachs and
Russian bank Troika Dialog.
As head of Russian equity capital
markets, Kraschenko recently orches-
trated the London float of Russian pri-
vate bank Nomos, one of a limited num-
ber of successful Russian IPOs so far
this year.
She was joined on the Global Ports
deal by shipping finance expert Iain
Macleod, managing director in UK
investment banking.
Macleod recently advised ports
giant DP World on its London listing. He
also advised the Dubai-based company
on its 6.8bn (4.2bn) acquisition of
British shipping firm P&O in 2006.
Andrew Chulack, co-head of invest-
ment banking coverage and advisory
for Russia, also worked on the deal.
MEET THE ADVISERS: DEUTSCHE BANK
MARINA
KRASCHENKO
DEUTSCHE BANK
2
Certified Distribution
03467
QATARI conglomerate Aamal has
pulled its plans to sell up to $600m
(371m) in shares on the London
Stock Exchange.
Management at the company,
which owns a range of industrial
businesses in the Middle East, will
postpone the listing until autumn at
the earliest following a meeting with
advisers yesterday.
The $2.4bn-valued companys fail-
ure to list follows a string of aban-
doned London share issues, amid a
crippling City war over the pricing of
IPOs.
Investors are holding onto their
cash rather than agreeing to the valu-
ation of the company, a source close
to the deal told City A.M..
ort
us-
ven
he
kle
ars
rise
nfla-
ting
ank
H: P2
P2-3
n g
Qatari conglomerate pulls IPO
SPECIAL INVESTIGATION: CITY AT WAR
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EVEN if you have never stayed at
Oxfords Malmaison hotel, you may
know the former jail from its TV
appearances in Porridge, Inspector
Morse and The Italian Job.
The boutique hotel which until
1996 was known as Her Majestys
Prison Oxford is now a home from
home for the bankers of Britain, who
pay up to 345 to spend the night in
A-Wing, where three prison cells
have been sensitively knocked
through to create a four-star suite
with adjoining bathroom.
The one-time jail has become so
popular in City circles that it wel-
comed its 500th banker through its
doors this week and, to mark the
occasion, general manager Mark
McSorley left a note on said bankers
pillow that called to mind the spec-
tres of Strauss-Kahn, Madoff, Leeson
and friends. Enjoy your stay, he
wrote. But remember, next
time it could be the real thing.
Luckily, the banker and his
wife have stayed at the
Malmaison a number of times,
so they saw the funny side rather
than calling in their lawyers. They
took the joke in the humorous spir-
it in which it was intended,
said a lawsuit-free McSorley.
ON YOUR BIKE
DAVID Sproul (right) is not
resting on his laurels
after being appointed as
Deloittes new chief exec-
utive. After just 17 days in
the top job, he is spending
this Sunday cycling 95
miles from Ludlow to
Bath as part of the
Deloitte Ride Across
Britain, accompanied by
six senior partners and
100 Deloitte colleagues
to raise 1m for Paralympics GB.
Matt Brittin, managing director of
Google UK and Ciscos UK & Ireland
chief executive Phil Smith are also
taking part in the ride, which Sproul
described as slightly daunting.
RAISING THE BAR
INTERESTING times at the Bar
Council, which is developing closer
relations with the City of London as
it looks to increase UK barristers
international arbitration work,
ahead of the appointment of Michael
Todd QC as chairman next January.
UK barristers are recognised
experts in their fields and we
believe there are exciting opportu-
nities for the Bar abroad, particular-
ly in the Gulf, India and China,
Mark Hatcher, director of represen-
tation and policy at The Bar
Council, told The Capitalist.
Perhaps its one for the in-tray of
Alderman David Wootton, under-
stood to be the preferred candidate
to take over from Michael Bear as
Lord Mayor in November.
As Hatcher continued: When the
Lord Mayor goes abroad on a trade
mission to extol the Citys virtues, we
want to ensure he understands the
important part the Bar plays in con-
tributing to London as a leading
global financial centre.
CODE BREAKERS
CALLING all readers who like fast
cars and solving puzzles. The eth-
ical hackers at PwC have hid-
den a coded message on the
bodywork of an Aston
Martin V8 Vantage that is
racing in the British GT
Championship at Brands
Hatch on Sunday.
Crack the code for a
chance of winning
prizes such as
having your
name embla-
zoned on the
sports car at
races around
the country.
If you cant
make it to
B r a n d s
Hatch, pic-
tures of the
car will be
posted at
www.secure
raci ng. org
after the
race.
MALMAISON TAKES NO
PRISONERS AS BANKER
COUPLE TURN JAIL BAIT
In good nick: Malmaison Oxfords A Wing
The Capitalist
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
After a sodden start to Ladies Day at Ascot, the day
brightened up by the time the crowds cheered the
favourite Fame and Glory to victory in The Gold
Cup. Better luck next time for Duncan, the horse
owned by Philippa Cooper, the wife of Sterling
Insurance Group chairman Nicholas Cooper, which
came fourth despite being second favourite.
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VODAFONE yesterday announced it
has completed the 6.8bn sale of its 44
per cent stake in SFR to joint venture
partner Vivendi.
The worlds largest network
provider by revenue will also receive a
final dividend from SFR of 176m.
The pair have agreed terms for a
new two-year commercial partnership
that will enable Vodafone customers
to use SFR signal when in France.
Analysts believe Vodafone negotiat-
ed a good price for the asset, especial-
ly after Vivendi signalled it would not
pay more than 6bn.
It said a planned 4bn share buy-
back program associated with the
deal will commence shortly.
The sale is part of Vodafones strate-
gy to exit its non-core assets.
It has already sold its minority
interests in China and Japan and is
now likely to turn its attention to
divesting its Polish assets. Analysts
estimate its 24.4 per cent stake in
Polands Polkomtel could be worth
about 1bn (879m).
Earlier this year Vodafone bought
Essar out of its Indian venture for
$5bn, in a move that paves the way for
an eventual flotation of the firm.
Last year it sold its 3.2 per cent stake
in China Mobile for 4.3bn.
THE three main UK network opera-
tors yesterday announced a plan to
create a new mobile wallet joint
venture.
Vodafone, Everything Everywhere
and O2 held a joint briefing yesterday
in which they said the service will
provide a single point of contact for
advertisers, banks and retailers.
The wallet will take the form of a
smartphone app and will enable con-
tactless-payments through partner
banks, as well as send users offers and
vouchers from advertising clients.
The three networks said the ven-
ture could be ready to offer services
in time for the Olympics next year.
Smaller rival 3 said yesterday it was
concerned it was not consulted in
the plans. This could potentially pose
a problem for the scheme, which still
requires competition clearance.
However, O2 boss Ronan Dunne said
he does not believe this will be a
major issue and said 3 is welcome to
join as a customer.
Vodafone, Everything Everywhere
and O2 will each own an equal share
of the as-yet-unnamed company and
will split the associated costs.
The new company will negotiate
advertising deals for all of the net-
works. The scheme seems designed to
ensure the networks get a slice of the
rapidly expanding mobile advertising
market. The sector grew 118 per cent
between 2009 and 2010 to reach
100m. By 2015 the UK mobile ad mar-
ket is expected to hit 1bn around a
fifth of the total online ad spend.
It will also act as a conduit for oper-
ator specific offers such as Everything
Everywheres Orange Wednesdays.
The service will go head-to-head
with m-commerce apps being devel-
oped by rivals including Google,
which recently announced a tie-up
with MasterCard.
Dunne told City A.M. the new
scheme stands apart from Google and
other rivals as the wallet is stored on
a Sim card, meaning customers can
easily change phones and networks
can remotely disable the services if a
user loses their phone.
He said he believes the venture can
become the predominant mobile wal-
let in the UK. Vodafones UK boss Guy
Laurence added he thinks the mobile
wallet could soon supercede physical
cards and even keys.
Networks to
launch new
mobile wallet
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Vodafone finalises a 6.8bn sale
of its 44 per cent holding in SFR
BY STEVE DINNEEN
TELECOMS
Vodafone UK chief Guy Laurence

News
Tom Alexander of Everything Everywhere o2 boss Ronan Dunne
THE LOWDOWN ON THE JV
Q.
WHAT IS THE STRUCTURE OF
THE NEW JOINT VENTURE?
A.
The new entity will be divided
equally between Everything
Everywhere, Vodafone and O2. The
networks will themselves be cus-
tomers of the new company and say
it will be open for business for
firms including smaller network 3
and online rivals like Google and
Facebook.
Q.
SO HOW WILL IT MAKE ANY
MONEY?
A.
The company will act as a cen-
tral point of contact for the net-
work operators. It will provide a
single structure for banks wishing to
offer mobile payments in the UK and
will negotiate advertising rates for
the three networks.
Q.
AND HOW WILL
IT WORK?
A.
It will be an app.
Through this you will, in theory
at least, be able to link credit cards,
loyalty cards and other promotions
including Orange Wednesdays.
Location-based services could also be
used to flag up nearby offers.
Q.
WHAT DOES THE COMPETITION
LOOK LIKE?
A.
Mobile commerce (m-commerce)
is hot right now. Google has
been a very early adopter, realising
just how lucrative mobile advertising
can be. Visa is also developing its
own technology. The networks plan
to store the information in a Sim sets
it apart. Whether it will be enough is
yet to be seen.
Q A
&
BY STEVE DINNEEN
TELECOMS
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News
NEWS | IN BRIEF
Nokia closes its UK online store
Nokia will pull the plug on its UK online
store as it continues to strip back its
operations across Europe. It will not
process any payments after 30 June.
Nokias online stores have struggled to
shift phones thanks to the hefty dis-
counts offered when buying through a
network operator. Most handsets are
available free with a two year contract.
Nokia also suffered a blow in yet another
patent battle yesterday, when a court in
London ruled a key patent held by a
German company called IPCom was
valid though a spokesman for Nokia
said the ruling would not affect its UK
sales. Nokia received a rare piece of good
fortune on Wednesday when Apple set-
tled an ongoing patent row, agreeing to
pay a one-off sum as well as contributing
ongoing royalty fees. The sum is likely to
run into hundreds of millions of dollars.
THE hacker group that has
been playing havoc with the
online security of some of the
worlds biggest companies
yesterday said it had brought
down the website of the CIA.
Lulz Security (LulzSec)
whose members refer to it as
the Lulz Boat has already
admitted to targeting a string
of companies and organisa-
tions including Sony, Nintendo,
the US Senate, video games
maker Bethesda Softworks and
the US Public Broadcasting
System. Information stolen is
often posted online.
The group, which consists of
loosely affiliated hackers, has
said it doesnt like the US gov-
ernment very much and
hacked the Senate website
just-for-kicks.
In a dig at President Barack
Obamas comments that any
state-backed cyber attacks will
be treated as acts of war, the
hackers added is this an act of
war, gentlemen? Problem?
The CIA said it still investigat-
ing the breach, which is
believed to be a distributed
denial of service (DDoS) attack,
where a site flooded with
requests for information until
it collapses.
LulzSec sometimes uses the
image of a man in a top hat
with a monacle (right). When a
security firm offered a $10,000
reward for any hackers who
could breach its website securi-
ty the logo was plastered on the
homepage along with the mes-
sage: Keep your money. We do
it for the lulz.
The brazen hackers even set
up a telephone hotline for sug-
gestions on targets. LulzSec
tweeted the number on
Wednesday, urging its more
than 150,000 Twitter followers
to help it pick its next victim.
The answering machine mes-
sage said: We are not available
right now as we are busy raping
your internet. Leave a message
and we will get back to you
whenever we feel like.
More serious recent attacks,
like those on the The
International Monetary
Fund, defence firm
Lockheed Martin,
Citigroup and
Google are
thought to
be backed
by foreign
s t a t e s .
Citigroup
was targeted
by hackers
who stole lim-
ited informa-
tion about 200,000 US
customers.
Hackers who do it for the Lulz hit CIA website
BY STEVE DINNEEN
TECHNOLOGY
HIGHER energy prices kept Eurozone

annual inflation well above the
European Central Banks target in
May, data showed yesterday, strength-
ening the case for an expected ECB
interest rate rise in July.
Eurostat said consumer prices in
the 17 countries using the euro were
flat month-on-month in May and con-
firmed its earlier estimate of a 2.7 per
cent year-on-year rise, down from 2.8
per cent year-on-year in April.
The ECB wants to keep inflation
below but close to two per cent, and
signalled it would raise interest rates
again in July after a 25 basis point
increase in April to 1.25 per cent, to
stem inflationary pressures from ener-
gy and food.
The dip in Eurozone consumer
price inflation to 2.7 per cent in May
and slight easing in core inflation will
not stop the ECB from delivering the
25 basis point interest rate hike, said
Howard Archer, economist at IHS
Global Insight.
Eurostat said fuels for transport
added 0.48 percentage points to the
final annual reading, heating oil was
responsible for 0.15 and electricity and
gas for 0.12 and 0.09 respectively.
Month-on-month, food was the
main upward driver, but this was off-
set by a monthly decline in the prices
of package holidays and cheaper fuel.
Excluding the volatile unprocessed
food and energy costs, in core infla-
tion, prices grew 0.1 per cent month-
on-month and 1.7 per cent
year-on-year, down from 1.8 per cent in
April.
The easing in core inflation seems
to reflect a technical correction after
the late Easter, and therefore should
not be seen as a reversal of the recent
upward trajectory, said Marco Valli,
economist at Unicredit.
Energy prices
keep Eurozone
inflation high
ITS THE LITTLE THINGS THAT
jeep.co.uk
BY HARRY BANKS
EUROZONE ECONOMY
EMPLOYMENT in the Eurozone was

stable in the first quarter of the year,
rising just 0.1 per cent on the final
three months of last year, Brussels
statistics office revealed yesterday.
At the end of last year, employment
grew by 0.2 per cent in the 17-country
single currency area.
Flat Eurozone employment in the
first quarter masked significantly dif-
fering performances amid the indi-
vidual economies, commented
Howard Archer of IHS Global Insight.
Germany saw ongoing healthy
growth in employment, while there
was also decent increases in most of
the other core Northern Eurozone
economies including France, Archer
added. In contrast, Spanish and
Portuguese employment continued
to fall, while there was a renewed,
sharp drop in Italy.
Employment slowly improving in
Euro areas two-speed economy
EUROZONE ECONOMY
THE US current account deficit

increased to $119.3bn (74bn) in the
first quarter of the year on strong
imports, the American commerce
department said yesterday.
The gap was narrower than expect-
ed by many economists, who had
anticipated a gap of around $126bn.
The deficit -- which measures the
flow of goods, services and invest-
ments in and out of the US -- repre-
sented 3.2 per cent of the countrys
GDP, up from three per cent in the
fourth quarter.
The fourth quarter figures for 2010
were revised for technical reasons,
with the gap measuring $112.2bn.
New applications for US unemploy-
ment benefits dipped in the latest
week but remained at levels that
were too high to put a dent in the
unemployment rate.
Fresh new jobless claims fell to
414,000 in the week ended 11 June
from an upwardly revised 430,000 in
the prior week.
Meanwhile, the commerce depart-
ment said housing starts rose 3.5 per
cent to a seasonally adjusted annual
rate of 560,000 units, retracing
almost half of Aprils steep decline.
However, factory activity in
Philadelphia unexpectedly shrank in
June to its lowest level in nearly two
years in another sign of weakness in
the US manufacturing sector.
Strong imports prompt US
current account gap to widen
BY JULIAN HARRIS
US ECONOMY
News
LONDON LEADS THE WAY TO RECORD RENTS
Rents across England and Wales reached fresh highs in May, according to LSL Property
Services figures out today. The average rent bill rose by 0.5 per cent during May to hit
696 a month, with tenants in the East of England suffering the biggest jump of 1.4 per
cent month-on-month. London has been head and shoulders above the rest of the country
over the year, with rents rising 7.8 per cent giving landlords a yield of 4.8 per cent.
ITS THE LITTLE THINGS THAT
jeep.co.uk
CABLE & Wireless Worldwide (CWW)
is in preliminary talks to buy cloud
services firm 2e2 in a deal that could
be worth 400m.
Beleaguered CWW hopes to wrest
control of the firm from its private
equity backer Duke Street, which
owns just under half of the IT com-
pany, and Hutton Collins, which
owns 24 per cent.
CWW is looking to bolster its
cloud services to offer a more com-
plete package to its clients. It has
been forced to issue two profit warn-
ings this year, which it said were
partly caused by decreased govern-
ment spending.
A company spokesman told City
A.M. it does not comment on rumour
and speculation.
The business, which split from the
former Cable & Wireless Group in
2009, announced last month it has
turned cashflow positive for the first
time.
It reported free cash flow genera-
tion of 61m. In 2006 it was burning
through well over 400m in cash.
It slashed costs to push pre-tax
profit up 23 per cent to 143m on
slightly lower revenues of 2.3bn.
2e2 reported operating profits last
year of 14.9m on revenues of
327m.
CWW in a bid
to buy up 2e2
BY STEVE DINNEEN
TELECOMS
THE TREND towards the use of cov-

ered bonds as a form of secured
funding for banks will tail off, rat-
ings agency Fitch claims.
Regulators want to encourage
banks to use more secure methods
of funding, such as covered bonds,
in order to make them less suscepti-
ble to periods of financial stress.
But, despite a growing demand in
the market for covered bonds, Fitch
says the trend is likely to decline
due to risk aversion amongst
investors and the rising cost of fund-
ing.
Investor risk aversion toward the
banking sector, and unsecured bank
debt in particular, has increased for
both cyclical and structural rea-
sons, says Gerry Rawcliffe, manag-
ing director in Fitchs financial
institutions team.
Use of covered bonds as a form
of bank funding likely to tail off
CAPITAL MARKETS
News
CAIRN Energys founder Sir Bill
Gammell said he would step back
from the day-to-day running of the
oil explorer to become non-execu-
tive chairman yesterday.
He succeeds
N o r m a n
M u r r a y ,
who after
n i n e
years as
chairman
and 12 on
the board
is leaving to
concentrate
on other posi-
tions, includ-
ing at oilfield
facilities firm
Petrofac.
S i r
B i l l
will
hand the chief executives reins to
Simon Thomson, Cairns legal and
commercial director, who has spent
15 years at the company.
Sir Bill said Thomson had played
an instrumental role in accessing
the opportunities that Greenland
offers the company as well as in the
delivery of value from Cairns inter-
ests in India.
Simons abilities are of outstand-
ing value to Cairn and are properly
recognised by this promotion,
Murray said.
It will be Sir Bills first opportuni-
ty to step back from operational
management in 30 years. A former
Scotland rugby player, he founded
Cairn at the age of 27 in 1980,
becoming its chief executive when
it listed in 1988.
Under his leadership Cairn has
bought and developed oil and gas
assets in India, where its sub-
sidiary is currently negotiating
the sale of assets to Vedanta
Resources. It has also moved deep
into Greenland, despite opposi-
tion from campaigner
Greenpeace.
Murray was instrumental in
Cairns purchase of Shells 50 per
cent stake in Indias Rajasthan oil
field in 2002, for 4.7m. Since
then oil production in the field has
risen steadily to 4bn barrels per year
and Vedanta is prepared to pay up to
$9.6bn (5.9bn) for the assets.
Sir Bills move up to chairman
officially flouts the UK corporate
governance code, but Cairn said it
had consulted its major sharehold-
ers on the reshuffle.
The board, led by the senior inde-
pendent director, Iain McLaren,
views Sir Bill as overwhelmingly the
best choice for chairman, said
Murray, citing his experience as
chairman of Cairn India among
other advantages.
Murrays own retirement is also
significant in corporate governance
terms, as nine years is a watershed
under the code after which board
members must be re-elected every
year.
Cairns chief operating officer
Malcolm Thoms and Philip Tracy,
group engineering and operations
director will also both to leave at the
end of June. It has created a new
role of managing director for Jann
Brown, its current finance
director, as she has taken on
new responsibilities.
Dr Mike Watts will con-
tinue as deputy chief
executive, it said.
Cairn founder steps aside for homegrown talent
BY ALISON LOCK
ENERGY
SIR BILL GAMMELL

SIMON THOMSON
ANALYSIS l Cable & Wireless Worldwide
p
65
60
55
50
45
49.05
16 Jun
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CUT-PRICE airline easyJet yesterday
said it is to start flying out of
Southend airport in Essex from April
2012, just months before the
Olympics open in east London.
EasyJet expects to fly 800,000 pas-
sengers through the airport in its
first year, routing 70 flights per week
to ten European cities including
Barcelona and Ibiza in Spain, and
Faro in Portugal.
It has signed a ten-year deal to oper-
ate the flights from the airport,
which is located close enough to the
capital to be a major competitor to
Londons Stansted and City airports
during the Olympic events.
The agreement was signed with air-
port owner Stobart Group, the
haulage firm founded by Eddie
Stobart.
Southend airport is currently used
as a freight hub and for private jets, as
well as flights to Jersey and Ireland.
EasyJets customer and revenue
director Catherine Lynn said it
expected to see a high number of
inbound business and leisure passen-
gers to London next year as well as
serving as an outlet for London trav-
ellers.
London Southend, as it is known,
completes new rail links to central
London this summer and will run
eight trains an hour to Stratford,
where the Olympic village is based,
and Liverpool Street stations.
The train journey is expected to
take 42 minutes to Stratford and 49
minutes to Liverpool Street.
EasyJet to fly
to Southend
by Olympics
AIRLINE Virgin Atlantic yesterday
warned that proposed changes to Air
Passenger Duty (APD) could cost holi-
daymakers 1bn in extra taxes, as the
government prepares to close its con-
sultation on the matter today.
APD raised 2bn in 2010, but in its
response to the possible reforms
Virgin said this could jump to 3bn
with costs passed on to UK tourists
and business travellers.
Higher charges are planned for a
number of key routes from the UK,
including the Caribbean, with airlines
worried that passengers will cut down
on travel if they go ahead.
We already know that more than
half of long-haul flyers say they would
consider cutting down their number
of long haul flights if there were fur-
ther rises in APD, said Virgins chief
commercial officer Julie Southern.
There are also concerns that the
Irish Republics plans to abolish APD
will mean that Northern Ireland will
lose out on business as residents cross
the border for international flights.
Aviation has a crucial role to play in
UK tourism and the wider economic
recovery, said Southern.
But this economic potential is
being stifled by ever increasing levels
of air passenger duty which is already
the highest in Europe.
Passengers may
face a 1bn bill
from air tax rise
EasyJet, run by Carolyn McCall, unveiled the plan to fly from Southend yesterday
BY ALISON LOCK
AVIATION
AVIATION
News
ANALYSIS l easyJet
p
370
350
330
347.70
16 Jun
No, Southend is too far from London, there
isn't very good rail linking and it is pretty hard
to travel to from central London. I don't think
people would want to travel that far.
SEAN SMITH | AXA
Yes, it's not like it could make it any worse. It
would help all the people living in Southend as
it is fairly accessible, but it all depends on the
destinations easyJet will fly to.
Yes, this makes me very happy; a lot of
planes come to London airports causing so
much congestion. Having the option to go to
Southend will certainly hold attraction for
City workers who live close to Essex.
IAN WHITE | LLOYDS OF LONDON
MICHAEL KING | JR CLARE
CITY VIEWS: WILL EASYJETS MOVE HELP TO EASE
RUNWAY CAPACITY PROBLEMS? Interviews by Phoebe Torrance
INFRASTRUCTURE design consultan-
cy WS Atkins said its global growth
strategy made it better able to manage
the difficult economic environment,
helping it post a 9.4 per cent rise in
pre-tax profit in the past year.
Atkins said revenues increased by
12.7 per cent to 1.56bn in the year to
the end of March, while underlying
profits rose to 102.7m.
But its UK business experienced a
20.6 per cent slump in operating prof-
it and 5.8 per cent fall in revenue in
tough conditions.
We have identified that material
growth in this segment will be diffi-
cult in the near term, the firm said.
Operating profit was 61.4m, down
from 77.3m in 2010, while revenues
fell to 926.5m, though WS Atkins
said the fall was in line with its expec-
tations and it saw the outlook as sta-
ble.
Work in hand is broadly consistent
with the same time last year and we
enter the new financial year with con-
fidence in our ability to navigate what
remains a difficult market.
WS Atkins cut its UK employee
headcount by 7.2 per cent to below
9,640 in the year to adjust to the lower
levels of business.
It said the year had been transfor-
mational as it added a new acquisi-
tion in the US and broadened its work
base in the Middle East, which gave it
greater resilience.
It has raised its dividend by 5.5 per
cent, but it was not enough to stop the
firms shares slipping 3.2 per cent.
UK business
drags on WS
Atkins gains
BRITISH industrial equipment hire
company Ashtead said a continued
shift to rentals from ownership left it
well placed for 2012, after posting
full-year pre-tax profit in line with
expectations.
The FTSE 250 company, which hires
out equipment from diggers to small
tools, yesterday said the trend of con-
tractors renting rather than buying
equipment had continued in the face
of limited financing and a slow con-
struction recovery.
Pre-tax profit for the year to the
end of April was 31m against 5m in
2010 -- a year that was blighted by
weak construction markets. Results
for the year, bolstered by a 10 per cent
revenue rise in its largest market -- US
Sunbelt operations -- compared with a
consensus of 29.47m, according to a
poll of 11 analysts.
Although continued challenging
end-market conditions are likely to
constrain upgrades, we expect con-
sensus 2012 pre-tax profit to move to
the high 50m. We remain a buyer on
the basis of the strong long-term
structural growth story in the US,
Investec analysts said in a note.
In its UK market, full-year revenue
grew one per cent and Ashtead said it
could benefit from an improving out-
look for UK housebuilders.
US rentals lift
growth at hire
firm Ashtead
BY ALISON LOCK
ENGINEERING
INDUSTRIALS
News
ANALYSIS l WS Atkins
p
820
780
740
700
660
777.44
16 Jun
ANALYST VIEWS: ARE THERE WEAKNESSES
IN WS ATKINS RESULTS? Interviews by Alison Lock
CHRISTOPHER BAMBERRY | PEEL HUNT

Atkins delivered a strong set of prelims, five per cent ahead of our
expectations, because of the outperformance of the Middle East business.
Although a well managed market leader, Atkins is over 50 per cent exposed to the
UK, which will in our opinion impede growth over the next two years.
GRAHAM BROWN | EVOLUTION SECURITIES

Its underlying results show profit before tax growth of 9.4 per cent and
revenue growth of 13 per cent but these include the PBSJ acquisition. In effect,
the core business has contracted by four per cent in revenue terms with a smaller
fall in pre-tax profit. We see better value elsewhere.
MICHAEL PARKINSON | BREWIN DOLPHIN

Final results are ahead of expectations. The principal reason for outper-
formance versus our estimates looks to be the Middle East business, where profits
increased by 70 per cent. We expect to make small upgrades to our forecasts to
include the recent Poyry acquisition and better margins at PBSJ.
WS Atkins chief Keith Clarke oversaw a 9.4 per cent rise in group profit in the last year
ELECTRONIC components distributor
Premier Farnell missed first-quarter
profit forecasts yesterday due to weak-
ness in its Asia Pacific operations,
sending its shares to a nine-month low
of 250.4p.
Premier Farnell, whose shares had
risen sharply in recent months to
reach a nine-year high on the back of
hopes for its exposure to global
growth, said its sales in Asia Pacific fell
nearly four per cent, mainly due to a
disappointing performance in
Singapore and Malaysia.
The FTSE 250-listed company said it
had beaten its own forecasts and
added it would perform in line with
targets for the second quarter, but ana-
lysts said they were disappointed with
the profit miss.
Adjusted Q1 numbers from
Premier Farnell were below our and
the markets expectations, Seymour
Pierce analyst Caroline de La Soujeole
said, though she did not change her
full-year forecasts.
The structural growth drivers are
still in place and very strong ... and we
are still positive on the company, de
La Soujeole said.
Premier Farnell sold its TPC divi-
sion, a US distributor of industrial wire
and cable, earlier this year as part of its
strategy to focus on its electronic
design engineer and maintenance
repair and operation businesses.
For the quarter ended 29 January,
the company, which sells products
ranging from batteries and chargers to
computer consumables and security
products in Europe, North America
and Asia Pacific, said pre-tax profit
before exceptional items rose to
24.1m from 21.4m last year.
Analysts, on average, were expecting
a profit of 26.6m for the quarter.
The FTSE 250 company, which
counts Philips, Microsoft and Nokia as
its customers, said sales for the first
quarter rose 8.3 per cent to 252.5m.
INTERCONTINENTAL Hotels Group is
switching 25,000 of its employees and
hotel managers onto an email system
managed by Google in place of
Microsofts Outlook.
The move is a significant but rare
victory for Google, which has been
trying for several years to break
Microsofts dominance in the market
for corporate software and communi-
cation applications.
The new email system, part of the
Google Apps suite of products being
used by IHG, will be entirely in the
cloud meaning it will be run on
servers managed by Google and
accessed by users via the internet,
IHG said.
A representative for Google con-
firmed the contract and said the com-
pany was pleased to work with IHG.
The worlds largest hotel compa-
ny which runs the Holiday Inn and
Crowne Plaza hotel chains, among
others is saving about 30 per cent
off the cost of running equivalent
Microsoft products, said Gustaaf
Schrils, IHGs vice president of tech-
nology in the Americas, though he
said he could not divulge exact fig-
ures.
Google charges a flat subscription
of $50 per user per year for Google
Apps for big customers like IHG.
Microsoft has said its competing
Office 365 cloud-based suite of appli-
cations set for launch later this
month will cost between $25 and
$325 per user per year.
Google wins contract to supply cloud
IT services to InterContinental Hotels
ALIBABA Group said yesterday it has
reorganised Taobao, Chinas largest e-
commerce website, into three separate
companies, squashing any chance of a
Taobao public offering.
The move to split Taobao comes as
Alibaba Group founder Jack Ma grap-
ples with its major shareholders,
Yahoo and Japans Softbank, over own-
ership of Alipay, another of the
groups crown jewels.
Taobao had 70 per cent of all online
sales transacted in China in the first
quarter of the year and has been val-
ued by Goldman Sachs at about $7bn.
The firm will be split into three
companies its product search engine
eTao, business-to-consumer website
Taobao Mall and consumer-to-con-
sumer website Taobao.com.
We believe that reorganising
Taobao into smaller companies will
create more value for the whole indus-
try, and therefore, more value to our
company and shareholders, Ma said
yesterday.
Alibaba will split Taobao
instead of seeking a float
TECHNOLOGY
AXIOM Telecom has sold a 35 per cent

stake to Qatars Mannai Corp for an
undisclosed amount after deciding
against a London share listing, the
Dubai-based mobile phone retailer
said yesterday.
The sale follows Axioms aborted ini-
tial public offering (IPO) last year,
when it planned to list on the Nasdaq
Dubai exchange by selling up to one-
third of its shares. Axiom cited mar-
ket conditions and liquidity
concerns, with offers not matching its
$1bn valuation.
Axiom said the Mannai deal was
done at a higher valuation, without
offering further details on pricing.
We have covered all our financial
requirements through this deal, but
maybe there will be other opportuni-
ties to look at later on, Axiom chief
executive Faisal al-Bannai said.
His associate companies will own 39
per cent of Axioms shares, with the
last 26 per cent held by a unit of Dubai
Holding, once the deal closes.
UAE's Axiom sells 35pc
stake to Qatar's Mannai
TELECOMS
PASSENGER jet sales will reach $4 tril-

lion (2.5 trillion) over the next 20
years, Boeing predicted yesterday as it
hiked demand forecasts on the eve of
the Paris Air Show.
The US planemaker estimated a
total of 33,500 jetliner sales by all
manufacturers between 2011 and
2030, led by Asia, which has already
toppled North America as the busiest
region for air travel and is set to domi-
nate coming decades.
Last year Boeing predicted 30,900
plane sales worth $3.6bn over 20 years
up to 2029.
The increase partly reflects a
healthier starting point, as the avia-
tion industry has already turned the
corner from recession. But it also fac-
tors in an eight per cent increase in
anticipated demand for single-aisle
jets like the Boeing 737 and Airbus
A320, a segment of the market worth
$2 trillion.
The world market has recovered
and is now expanding at a significant
rate, said Randy Tinseth, vice presi-
dent of marketing at Boeings com-
mercial division.
Boeings forecast includes 11,450
new jets for Asia in a confirmation of
the regions transport-intensive
growth despite the expansion of high-
speed rail networks in China.
The core of the aviation market
has now moved from the US and
North America to the Asian-Pacific
market place, Tinseth said.
By the end of 2012, there will be
12,000 km of high-speed rail lines in
China, as much as in the rest of the
world.
That will curb some demand for air
travel but will also promote economic
growth that should result in further
investment in air travel, with 97 air-
ports set to open in China by 2020,
Tinseth said.
Boeing sees $4 trillion jet sales
BY HARRY BANKS
AVIATION
Asian slump
hits Premier
Farnell profit
BY HARRY BANKS
TECHNOLOGY
BY HARRY BANKS
TECHNOLOGY
News
ROLLS-ROYCE WINS 100M IN CONTRACTS
ENGINE maker Rolls-Royce, led by Sir John Rose, has won more than 100m in new orders to
supply ship engines for offshore oil and gas vessels. The ships are for deepwater oil and gas
drilling and require engines with multiple thrusters. Rolls-Royce said the propulsion systems
had extraordinary demands placed on them. The orders have been placed by ship owners
including Sea Drill, Pacific Drilling, Noble, Ocean Rig and Pride.
ANALYSIS l Premier Farnell
p
305
295
285
275
265
255
245
250.40
16 Jun
NEWS | IN BRIEF
WYG plots a restructuring
Engineering group WYG yesterday
detailed a capital restructuring and job
cuts for 50 per cent of its staff as it
fights to stay solvent. The Leeds-based
firm plans to drum up 30m in an equity
fundraising, and will perform a debt-for-
equity swap with its creditors. The firm
reported a pre-tax loss of 28.6m for
the nine months to the end of March, on
revenues around half the level seen last
year. The news sent the firms Aim-listed
shares down almost 22 per cent.
Gulf Keystone on track in Iraq
Aim-listed Gulf Keystone Petroleum yes-
terday said its wells in the Kurdistan
region of Iraq were on course, and that
one of its oil deposits is five to ten per
cent larger than first thought. The com-
pany said it would have more informa-
tion on the Shaikan-4 appraisal well
after further tests. However, the firms
shares fell more than four per cent,
ahead of its annual shareholder meeting
where all resolutions were passed.
Avesco narrows its losses
Corporate entertainment firm Avesco
narrowed its losses last year, it
announced yesterday, after its revenues
rose 13 per cent. The firm made a pre-
tax loss of 140,000 in the three
months to the end of March, compared
with a 633,000 loss in the same period
last year. The company said it had
increased its banking facilities with
HSBC in anticipation of a busy 2012.
St Ives improves market share
British printer St Ives said yesterday
sales for the last four months rose about
four per cent and performance contin-
ues to improve compared to last year.
The company is attempting to raise mar-
ket share in book printing to offset the
rise in popularity of e-books and uncer-
tainty surrounding book chain
Waterstones, it said in a statement.
News
Citi
Bert Pijls, Citis UK Consumer Country
Business Manager and chief executive of
Egg Banking, has been named EMEA
consumer head of business development
and re-engineering. In addition, Alan
Duffell, formerly head of UK consumer
wind down at Citi, has been appointed as
consumer country business manager, as
well as chief executive of Egg Banking.
Man Group
The alternative asset manager has
appointed Warren Shiels as director, UK
Retail. Shiels joins from Gartmore, where
he most recently held the position of
head of intermediary sales.
Aberdeen Asset Management
The fund manager has appointed
Roberto Varandas as global head of busi-
ness development, property. Varandas
joins from UBS Global Asset
Managements Global Real Estate busi-
ness, where he was head of business
development for continental Europe.
Signature
The investment support division of
Rowan Dartington has appointed Trevor
Cant as business development manager.
Cant joins from TCF Investment, where
he was business development manager.
Barclays Wealth
The wealth manager has appointed
Thomas Roiz as managing director and
market head for Latin America, within
International Private Bank, EMEA. Roiz,
who will be based in Geneva, spent the
last two years as head of Latin America
at the Royal Bank of Canada (Suisse) SA.
EnQuest
The North Sea oil producer has appoint-
ed Clare Spottiswoode CBE as a non-
executive director. Spottiswoode is
currently chairman of Gas Strategies
Consulting and EnergySolutions, and a
non-executive director at G4S and Ilika.
Barclays Corporate
Roland Pearce has been appointed as
relationship director in the Barclays
Corporate Charities team. Pearce previ-
ously worked in Barclays Corporates
Cash Management team.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
Quadruple witching
holds up US stocks
U
S stocks rose in volatile trading
yesterday, thanks only to techni-
cal factors and options expira-
tions. But raging uncertainty
about Greece prevented investors from
committing money to the market.
The impending expiration of stock-
index futures, single-stock futures,
equity options and stock-index options
for June -- known as quadruple witch-
ing -- created exceptional volatility,
pushing the S&P 500 to swing more
than one per cent from its session low
to its intraday high.
Greece kept a pall over investor sen-
timent, even though experts say US
banks exposure to Greek debt may be
smaller than many market partici-
pants fear.
Still, the market needs resolution of
the situation soon, as the lack of a deal
to resolve the Greek debt crisis stifles
investor confidence and curbs the
market's advance.
The big headline is Greece, and its
going to continue to be Greece until
there is some clarity or conviction that
comes out of there, said Jonathan
Corpina of Meridian Equity Partners in
New York.
Losses were contained, however, as
investors looked for value after the
recent sell-off. The Dow finished the
volatile day with a modest gain and
the Nasdaq retraced some ground
after falling slightly more than one per
cent in late afternoon trading.
The S&P materials sector lost 0.9 per
cent, reflecting a slide in copper prices
amid concerns that the US economy
may be slowing. Freeport-McMoRan
Copper & Gold shed 1.4 per cent to
$47.85.
The Dow Jones industrial average
gained 64.25 points, or 0.54 per cent, to
11,961.52. The Standard & Poors 500
Index added 2.22 points, or 0.18 per-
cent, to 1,267.64. But the Nasdaq
Composite Index dropped 7.76 points,
or 0.29 per cent, to 2,623.70.
The S&P 500 has dropped seven per-
cent from its April 29 closing high.
The benchmark S&P 500 Index
appeared to bounce back from a tech-
nical support test at 1,257.88, its 200-
day moving average, recovering from
an intraday low of 1,258.07.
Quadruple witching is a term used
by pros to describe the quarterly expi-
ration and settlement of four types of
June equity futures and options con-
tracts -- an event that can add volume
and volatility as investors adjust their
derivatives positions.
The two-day event begins when June
stock-index futures and certain
options on the cash indexes such as
the S&P 500 and the Nasdaq 100 stop
trading at Thursdays close. These con-
tracts then settle on Fridays morning
opening.
B
RITAINS top shares fell
sharply yesterday as fears over
the global recovery and a con-
tagion impact from the Greek
debt crisis prompted investors to sell
out of riskier assets such as com-
modity stocks.
The FTSE 100 ended down 43.74
points, or 0.8 per cent, at 5,698.81,
back at levels last seen after the
Japanese earthquake, having shed
one per cent on Wednesday.
Investors were unnerved by
Greeces debt problems and a lack of
agreement in the euro area on an
aid plan, with the cost of insuring
Greek debt against default hitting
fresh record highs yesterday.
Fears of contagion were reflected
by a move in Spanish 10-year govern-
ment bond yields to 11-year highs
after tepid demand at a Spanish
debt auction.
Its the overall uncertainty that's
again getting hold of everyone and
leaving us with literally nowhere to
go, said James Hughes, senior mar-
ket analyst at Alpari UK.
When a deal [for Greece] does
come through, then of course you
have to deliberate the overall prob-
lems that are still there, and of
course... who's going to be next?
Commodity stocks bore the brunt
of the sell-off as investors fretted
about future demand for natural
resources.
Among miners, Lonmin and
Kazakhmys were the worst off, down
3.4 per cent and 3.3 per cent respec-
tively, while BG Group led integrated
oil stocks lower, off 1.4 per cent.
The market was dealt another
blow in the form of a disappointing
business activity survey from the
Philadelphia Federal Reserve Bank, a
day after negative New York State
manufacturing data.
US blue chips, however, were up
0.7 per cent by Londons close, as
bargain hunters moved in after a
more than seven per cent sell-off in
the last few weeks.
Ratcheting up the pressure yet
further, retail sales fell more than
twice as fast as expected in May,
with economists near-term progno-
sis for the situation gloomy as con-
sumers are faced with rising prices
and slow wage growth.
Kingfisher and Tesco sank 1.5 per
cent and 1.7 per cent respectively.
Elsewhere, GKN shed 3.1 per cent
after the British industrial and engi-
neering group said a fatal explosion
last month at an American plant it
runs will result in a 30m one-off hit
to its profits.
Despite the cocktail of negative
macro newsflow, strategists
remained upbeat, citing resilient
corporate earnings as supportive for
markets on a long-term view.
Investors look at the rioters on
the streets of Athens, they look at
the yield on Greek debt.. and that
obviously sends them into a cau-
tious frame of mind, said Henk
Potts, market strategist at Barclays
Wealth.
We anticipated that there was a
potential for a pullback given the
problems that you see from a macro
perspective but we still see this as an
opportunity for long-term equity
investors to take advantage of some
cheaper prices.
Outside the top flight, electronics
firm Laird rose 37.6 per cent after it
spurned the 500m takeover
advances of US electrical products
maker Copper Industries.
The biggest faller in the FTSE was
Umeco, the aerospace parts supplier,
which fell 8.9 per cent despite post-
ing a 26 per cent rise in its pre-tax
profit.
FTSE tumbles as Greek crisis
prompts flight from equities
THELONDON
REPORT
THENEW YORK
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Barclays
310
290
270
250
5Apr 25Apr 13May 2Jun
255.85
16 Jun
BARCLAYS
Deutsche Bank rates the bank buy with a target price of 386p. The bro-
ker notes that Barclays was keen to stress its flexibility in the face of regu-
latory shifts at a recent investor day, forecasting a 15 per cent return on
equity for BarCap in 2013 even if revenues are subdued by rule changes.
Deutsche Bank says it was reassured over the outlook for what it sees as a
very discounted stock, currently trading at 5.8 times 2012 earnings.
ANALYSIS l Shire Plc
2000
1950
1900
1850
1800
1750
1700
21 Mar 8Apr 4May 24Mar 14Jun
p
1,826.00
16 Jun
SHIRE
Goldman Sachs rates the healthcare firm buy with a target price of 23.
The broker sees an opportunity for the group in ADHD medication, follow-
ing data showing 12 per cent US market growth in the last month.
Goldmans growth predictions for the firm in this sector are 12 to 27 per
cent of consensus estimates. The broker sees the key risks for Shire as
large-scale M&A and manufacturing disruption.
ANALYSIS l J Sainsbury
370
360
350
340
330
320
p
324.70
16 Jun
SAINSBURY
Nomura rates the supermarket neutral with a lowered target price of
340p. The broker sees Sainsbury as performing better than Tesco, helped
by the firms exposure to non-food sales. However, Nomura thinks the gro-
cer needs to accelerate growth if it is to hit its like-for-like forecasts of two
per cent this year - though it believes its shares will consolidate at the cur-
rent price range.
Dalton Strategic Partnership
The investment manager has appointed Keith
Busuttil as an analyst on the European
Absolute Return equities team, based in
London, where he will work on the Melchior
European equity long short strategies. Busuttil
joins DSP from The Blackstone Group, where
he was vice president in the European Debt
Restructuring team. Prior to joining Blackstone
in 2007, Busuttil worked in the Mergers &
Acquisitions Group at Credit Suisse.
6,100
5,900
5,500
5,700
4May 24May 14Jun 8Apr 21 Mar
ANALYSIS l FTSE 100
5,698.81
16 June
At RWC, we view currency as a standalone asset
class as it is a reflection of capital flows around
the world and provides income through currency
appreciation or interest rate differentials. Some
would argue that currency is merely the conduit
for commodity, equity or bond investing, but if the
world wants to invest in Brazil then the Brazilian
real will be bought and increase in value, and for
many funds the only way to participate in that
investment is to own the currency. In addition, the
forward market in currency is just a reflection of
interest rate differentials and that in itself pres-
ents investment opportunities. An example of this
is Australian six month rates against US six month
rates, where you are paid to hold Australian dol-
lars and be short US dollars. The interest rate dif-
ferential between the two is over 4.5 per cent, so
any sudden weakness in the Australian dollar is
highly unlikely to last too long as the cost to be
short Australian dollars is very high.
Global bond funds, which are essentially long-only
funds, see currency as a means to outperform
their peers, simply by hedging or not hedging their
country allocation in bonds. So, if you are invested
in UK gilts out of US dollars and sterling falls, very
often any capital gains in the gilt market could be
wiped out by a fall in the currency.
Foreign exchange is a liquid asset and one that
corporations, small businesses and asset managers
need to respect to avoid unnecessary losses. This
makes it as much of an asset class as equities or
bonds.
Currency is
the largest
and most
liquid asset
class,
dwarfing
equities and
bonds
Wealth Management | Currency
A sound forex plan
is essential to boost
your equity returns,
writes Craig Drake
C
URRENCY is the worlds largest
asset class by its very nature, as
every world market is denominated
in currency. Forex is also the
worlds largest financial market, with
daily currency trading exceeding 1.5 tril-
lion.
Currency shows weak correlation with
other asset classes. As an example, if you
take the dollar spot price index (USDX)
which compares the dollar against a bas-
ket of six other major currencies and
the S&P 500 over the last two decades,
they have a Pearson correlation coeffi-
cient of 0.38. This means that while there
is some correlation, a 0.1 per cent move-
ment in equities listed in the S&P 500
would be accompanied by a 0.38 per cent
move in the dollar.
Another useful feature of the currency
market is that a worldwide crash, of the
type that we saw in 2008 in the equities
market, cannot happen in forex. Volatility
can go through the roof, but as the value
of one currency is expressed in terms of
the value of another, they cannot all fall
at the same time.
BLACKBALLED FROM THE CLUB
Despite the wide range of advantages
offered by currency, a large amount of
portfolios have little or no direct currency
exposure. There is even debate as to
whether currency should be considered
as an asset class at all. Naysayers point out
that currency in itself does not yield
returns. If you buy a basket of currency
and leave it to its own devices, you are
going to have the same amount of curren-
cy in five years time. In traditional asset
classes such as stocks and bonds, you can
expect a return, as there is capital being
used and you benefit from dividends and
share price gains. If you want to make
returns from currency within your portfo-
lio, you need to take an active role in its
management.
In the past, this may have been a chal-
lenge for investors as the forex market is a
Monitoring your
currency is essential
Investors should keep control of
the currency within their portfolio
very different beast to the equities mar-
ket. A degree of leveraging is required to
make real returns and currency involves a
greater amount of investor sophistication.
ETFS SIMPLIFYING EXPOSURE
However, the rise of currency exchange-
traded funds (ETF) has brought an easier
way for investors to gain currency expo-
sure within their portfolios.
According to Martin Arnold, senior ana-
lyst for ETF Securities, a lot of the asset
managers that make use of their currency
ETFs are looking to take a direction on
deep macro-economic trends driving mar-
kets at the moment: We offer tailored
sterling-based ETFs versus other G10 cur-
rencies. We also offer emerging market
currencies versus established markets,
allowing investors to take a position on
the renminbi or the rupee and so on
Alongside currency being held as a
standalone asset class, Arnold says that
currency exposure through ETFs can be a
useful tool for investors seeking to use
currencies as an active overlay to stock
positions leveraged products are of use if
you are taking an equities position in a
foreign currency denominated stock, For
example, if you were looking to the US, a
three times leveraged sterling-dollar ETF
would hedge that trade.
OFF THE SHELF HEDGING
If they choose not to manage their own
currency positions, investors do have the
option of buying into currency-hedged
funds. According to Jasper Berens, head of
the UK intermediary business at JP
Morgan Asset Management, currency
risk remains a growing concern for
investors. Given this uncertainty, it is
right to give investors, who are not pre-
pared to be exposed to both market and
currency risk, a choice between share
classes to best suit their requirements. At
the launch of a currency-hedged com-
modity fund, Berens said: Rather than
investing in companies whose primary
businesses are related to commodity mar-
kets, investors will only be taking com-
modity risk rather than equity and
commodity risk together.
Whatever your strategy for commodity
exposure, what is important is that you
must have one. Without it, those gains
that you make on a smart US equities
move could be wiped out in a second by
sterling-dollar movements.
Stuart Frost
portfolio manager
RWC Partners
EXPERT OPINION | CURRENCY AS A STANDALONE ASSET CLASS
25
0
-25
-50
-75
Source: Bloomberg
Oct 2009 Apr Apr Apr Jul Jul Oct Oct 2010 2011
ANALYSIS l USD Index spot vs S&P 500 index
USD index spot S&P 500 index
We certainly class foreign currency as an asset class
and it can have a very significant impact on the value
of your investment, based both on the underlying
denomination of the investment, translated back to
your home currency (for this we will assume ster-
ling) but also in relation to the underling trading
activities of a companys operations (around two
thirds of the FTSE 100s profitability comes from
non-sterling sources).
When investing in funds, the underlying manager
often states that they do not have a view on curren-
cy and they construct a portfolio based on what they
refer to as the quality of the underlying company or
bond in most cases, the investor therefore suffers
additional volatility as most equity funds do not
hedge the currency (many of the fixed income/bond
funds are hedged). If they or the underlying investor
dont have a view on currency, my strong view would
be that they should hedge back to sterling. You
could pick great performing companies/bonds that
produce very good returns but all that could be lost
in a currency translation therefore, if you dont
have a view, hedge!
It is also worth noting that, in periods where you
have a lot of uncertainty about the stability and
finances of governments, currency can provide great
returns if you forecast the outcome correctly. A cur-
rency can be viewed as the share price of a country
and if, for example, you thought that emerging mar-
kets are likely to perform better than the likes of the
UK and US, then currency is often a very efficient
and cost effective way to express this view.
Haig Bathgate
chief investment officer
Turcan Connell
LON GD ONCE FIX AM...........1525.00 7.25
SILVER LDN FIX AM ..................35.40 -0.36
MAPLE LEAF 1 OZ ....................54.00 0.00
LON PLATINUM AM................1767.00 -22.00
LON PALLADIUM AM...............768.00 -22.00
ALUMINIUM CASH .................2578.00 3.00
COPPER CASH ......................9146.50 36.50
LEAD CASH...........................2541.00 137.50
NICKEL CASH......................22225.00 5.00
TIN CASH.............................25500.00 160.00
ZINC CASH ............................2253.50 6.50
BRENT SPOT INDEX................117.20 -2.75
SOYA .....................................1368.00 0.00
COCOA..................................2987.00 -27.00
COFFEE...................................262.65 -6.60
KRUG.....................................1583.30 -3.00
WHEAT ....................................173.00 -1.38
AIR LIQUIDE........................................92.59 -0.19 100.65 79.85
ALLIANZ..............................................92.20 -0.52 108.85 78.99
ALSTOM..............................................41.80 -0.47 45.32 30.78
ANHEUS-BUSCH INBEV ....................39.67 -0.03 46.33 38.68
ARCELORMITTAL...............................22.41 0.06 28.55 20.26
AXA......................................................14.82 -0.33 16.16 10.88
BANCO SANTANDER...........................7.62 0.00 10.23 7.00
BASF SE..............................................62.85 -0.25 70.22 40.74
BAYER.................................................57.33 1.10 59.44 43.27
BBVA......................................................7.53 0.03 10.71 6.75
BMW....................................................63.44 1.06 65.49 37.80
BNP PARIBAS.....................................51.11 -0.19 59.93 43.13
CARREFOUR ......................................27.75 -1.00 41.28 27.44
CREDIT AGRICOLE..............................9.87 -0.04 12.92 8.13
CRH PLC .............................................14.34 0.17 19.92 11.51
DAIMLER.............................................46.97 0.34 59.09 37.03
DANONE..............................................51.38 0.54 51.72 41.00
DEUTSCHE BANK..............................39.77 0.04 51.61 35.93
DEUTSCHE BOERSE .........................52.61 -0.54 62.48 46.33
DEUTSCHE TELEKOM.......................10.40 0.05 11.38 9.37
E.ON.....................................................19.00 -0.14 25.54 18.25
ENEL......................................................4.55 0.04 4.86 3.42
ENI .......................................................15.81 -0.03 18.66 14.62
FRANCE TELECOM............................14.27 -0.02 17.45 14.01
GDF SUEZ ...........................................24.20 0.24 30.05 22.64
GENERALI ASS...................................14.21 -0.05 17.05 13.31
IBERDROLA..........................................5.96 -0.01 6.50 4.38
ING GROEP CVA...................................7.97 -0.07 9.50 5.92
INTESA SANPAOLO.............................1.74 0.02 2.53 1.65
KON.PHILIPS ELECTR.......................17.81 0.22 26.87 17.35
L'OREAL..............................................84.93 -0.47 90.00 75.03
LVMH..................................................113.00 -2.00 129.05 84.85
MUNICH RE.......................................101.05 -1.20 126.00 99.62
NOKIA....................................................4.14 -0.05 8.49 4.05
REPSOL YPF.......................................22.08 0.04 24.90 16.30
RWE.....................................................37.35 -0.56 58.10 37.27
SAINT-GOBAIN...................................41.21 0.13 47.64 27.81
SANOFI ................................................51.68 -0.23 56.50 44.01
SAP......................................................42.14 -0.08 46.15 34.13
SCHNEIDER ELECTRIC ...................110.35 -0.35 123.65 79.70
SIEMENS .............................................90.82 -0.05 99.39 70.02
SOCIETE GENERALE.........................38.14 -0.64 52.70 32.50
TELECOM ITALIA..................................0.93 -0.00 1.16 0.89
TELEFONICA ......................................16.08 0.06 19.69 14.95
TOTAL..................................................38.09 0.35 44.55 35.66
UNIBAIL-RODAMCO SE...................153.95 0.20 159.30 111.60
UNICREDIT............................................1.46 -0.01 2.24 1.41
UNILEVER CVA...................................22.24 0.07 24.11 20.68
VINCI ....................................................42.01 -0.25 45.48 33.01
VIVENDI ...............................................18.33 0.16 22.07 16.25
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5698.81 -43.74 -0.76
FTSE 250 INDEX. . . . . . . . 11631.85 -131.58 -1.12
FTSE UK ALL SHARE . . . . 2977.47 -24.37 -0.81
FTSE AIM ALL SH . . . . . . . . 852.55 -15.27 -1.76
DOWJONES INDUS 30 . . 11961.52 64.25 0.54
S&P 500 . . . . . . . . . . . . . . . 1267.64 2.22 0.18
NASDAQ COMPOSITE . . . 2623.70 -7.76 -0.29
FTSEUROFIRST 300 . . . . . 1084.47 -4.52 -0.42
NIKKEI 225 AVERAGE . . . . 9411.28 -163.04 -1.70
DAX 30 PERFORMANCE. . 7110.20 -4.88 -0.07
CAC 40 . . . . . . . . . . . . . . . . 3792.31 -14.54 -0.38
SHANGHAI SE INDEX . . . . 2664.28 -41.15 -1.52
HANG SENG. . . . . . . . . . . 21953.11 -390.66 -1.75
S&P/ASX 20 INDEX . . . . . . 2693.80 -52.00 -1.89
ASX ALL ORDINARIES . . . 4546.70 -88.70 -1.91
BOVESPA SAO PAOLO. . 60880.62 -723.12 -1.17
ISEQ OVERALL INDEX . . . 2864.89 -23.33 -0.81
STI . . . . . . . . . . . . . . . . . . . . 3020.13 -34.69 -1.14
IGBM. . . . . . . . . . . . . . . . . . 1007.25 -1.42 -0.14
SWISS MARKET INDEX. . . 6157.67 -40.50 -0.65
Price Chg %chg
3M........................................................91.58 0.55 97.95 76.85
ABBOTT LABS ...................................51.31 0.00 54.24 44.59
ALCOA ................................................14.79 -0.17 18.47 9.81
ALTRIA GROUP..................................26.93 0.32 28.13 19.53
AMAZON.COM..................................183.65 -2.33 206.39 105.80
AMERICAN EXPRESS........................48.41 1.13 51.97 37.33
AMGEN INC.........................................58.34 0.45 61.53 50.34
APPLE...............................................325.16 -1.59 364.90 236.78
AT&T....................................................30.43 0.08 31.94 23.88
BANK OF AMERICA...........................10.60 0.10 16.10 10.40
BERKSHIRE HATAW B.......................75.01 1.18 87.65 73.23
BOEING CO.........................................74.01 0.16 80.65 59.48
BRISTOL MYERS SQUI ......................27.47 0.05 28.99 24.22
CATERPILLAR....................................95.46 -0.19 116.55 58.06
CHEVRON...........................................99.43 1.02 109.94 66.83
CISCO SYSTEMS................................15.05 0.21 26.00 14.78
CITIGROUP.........................................37.63 -0.37 51.50 36.20
COCA-COLA.......................................65.49 0.52 68.77 49.47
COLGATE PALMOLIVE......................86.57 0.81 87.58 73.12
CONOCOPHILLIPS.............................71.62 1.05 81.80 48.06
DU PONT(EI) DE NMR........................49.34 -0.20 57.00 33.73
EXXON MOBIL....................................79.22 0.56 88.23 55.94
GENERAL ELECTRIC.........................18.44 0.05 21.65 13.75
GOLDMAN SACHS GRP..................136.14 1.27 175.34 129.50
GOOGLE A........................................500.37 -2.58 642.96 433.63
HEWLETT PACKARD.........................34.97 0.71 49.39 33.95
HOME DEPOT.....................................34.50 0.62 39.38 26.62
IBM.....................................................162.67 0.34 173.54 120.61
INTEL CORP .......................................21.42 0.00 26.78 17.60
J.P.MORGAN CHASE.........................40.36 -0.32 48.36 35.16
JOHNSON & JOHNSON.....................66.32 0.16 67.37 56.86
KRAFT FOODS A................................34.30 0.28 35.44 24.30
MC DONALD'S CORP ........................81.81 0.57 83.08 65.31
MERCK AND CO. NEW......................35.18 0.01 37.68 31.06
MICROSOFT........................................24.00 0.26 29.46 22.73
OCCID. PETROLEUM.......................102.82 0.67 117.89 72.13
ORACLE CORP...................................30.80 -0.36 36.50 21.24
PEPSICO.............................................68.89 0.41 71.89 60.32
PFIZER ................................................20.24 0.05 21.45 14.00
PHILIP MORRIS INTL .........................67.52 0.01 71.75 44.95
PROCTER AND GAMBLE ..................64.26 0.50 67.72 56.57
QUALCOMM INC ................................52.99 -1.11 59.84 31.63
SCHLUMBERGER ..............................82.25 -0.41 95.64 52.91
TRAVELERS CIES..............................57.76 0.22 64.17 48.17
UNITED TECHNOLOGIE ....................84.35 1.08 90.67 63.62
UNITEDHEALTH GROUP...................49.66 0.31 51.46 27.13
VERIZON COMMS ..............................35.24 0.12 38.95 25.80
WAL-MART STORES..........................52.83 0.51 57.90 47.77
WALT DISNEY CO ..............................38.01 -0.38 44.34 30.72
WELLS FARGO & CO.........................26.80 0.25 34.25 23.02
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.545 0.00
LIBOR Euro - overnight ..................1.257 0.04
LIBOR Euro - 12 months.................2.113 0.00
LIBOR USD - overnight...................0.128 0.00
LIBOR USD - 12 months.................0.721 0.00
Halifax mortgage rate .....................3.500 0.00
Euro Base Rate ...............................1.250 0.00
Finance house base rate................1.000 0.00
US Fed funds...................................0.250 0.00
US long bond yield .........................4.020 0.03
European repo rate.........................1.273 0.00
Euro Euribor ....................................1.274 0.00
The vix index ...................................24.37 3.05
The baltic dry index ........................1.405 0.00
Markit iBoxx...................................221.34 0.83
Markit iTraxx....................................95.06 0.00
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
/$ 1.4143 0.0020
/ 0.8783 0.0029
/ 114.12 0.5400
/ 1.1387 0.0031
/$ 1.6103 0.0075
/ 129.99 1.0099
FTSE 100
5698.81
-43.74
FTSE 250
11631.85
-131.58
FTSE ALLSHARE
2977.47
-24.37
DOW
11961.52
64.25
NASDAQ
2623.70
-7.76
S&P 500
1267.64
2.22
Rexam . . . . . . . . . . . .376.7 -2.2 400.0 290.4
RPC Group . . . . . . . .333.0 -2.8 361.1 193.9
Smiths Group . . . . .1108.0 -15.0 1429.0 1043.0
Brown (N.) Group . . .267.7 -9.2 311.2 221.0
Carpetright . . . . . . . . .700.0 -24.0 835.5 631.0
Debenhams . . . . . . . . .67.9 -0.1 77.4 53.0
Dignity . . . . . . . . . . . .741.0 -12.0 785.0 627.5
Dixons Retail . . . . . . .16.7 -0.8 28.5 11.8
DunelmGroup . . . . . .426.3 1.1 550.0 325.3
Halfords Group . . . . .390.0 0.0 550.0 348.2
Home Retail Group . .175.3 4.6 244.5 165.5
Inchcape . . . . . . . . . .395.0 5.5 414.0 237.1
JD Sports Fashion . .877.0 -47.0 1005.0 683.0
Kesa Electricals . . . .140.5 0.1 174.0 108.9
Kingfisher . . . . . . . . .268.0 -4.1 287.1 198.5
Marks & Spencer G . .362.1 0.1 427.5 327.2
Mothercare . . . . . . . .389.0 -6.6 627.5 382.0
Next . . . . . . . . . . . . .2196.0 -36.0 2326.0 1868.0
Sports Direct Int . . . .220.2 -0.8 234.1 101.1
WH Smith . . . . . . . . . .474.0 0.2 523.0 398.2
Smith & Nephew . . . .653.5 -3.5 742.0 537.5
Synergy Health . . . . .905.0 3.5 948.0 640.0
Barratt Developme . .108.1 -4.5 119.0 70.1
Yule Catto & Co . . . . .222.8 -2.2 240.5 112.7
Balfour Beatty . . . . . .298.1 -8.1 357.3 229.8
Keller Group . . . . . . .472.7 -17.3 698.5 471.0
Kier Group . . . . . . . .1306.0 1.0 1418.0 886.5
Drax Group . . . . . . . .472.4 -2.2 488.3 353.6
Scottish & Southe . .1356.0 -15.0 1410.0 1108.0
Domino Printing S . .655.0 -5.0 705.0 433.0
Halma . . . . . . . . . . . . .387.4 -2.7 395.8 263.1
Laird . . . . . . . . . . . . . .188.9 51.6 194.9 98.8
Morgan Crucible C . .301.5 -5.5 333.0 179.5
Renishaw . . . . . . . . .1715.0 26.0 1819.0 709.0
Spectris . . . . . . . . . .1535.0 -46.0 1585.0 740.5
Aberforth Smaller . . .691.5 -13.0 714.0 506.0
Alliance Trust . . . . . .369.0 -2.9 385.0 293.5
Bankers Inv Trust . . .413.0 -4.0 428.0 337.0
BH Global Ltd. GB .1101.0 1.0 1174.0 1058.0
BH Global Ltd. US . . . .10.8 -0.1 11.6 10.4
BH Macro Ltd. EUR . . .17.0 0.0 17.2 15.8
BH Macro Ltd. GBP 1762.0 -4.0 1780.0 1630.0
BH Macro Ltd. USD . . .17.0 -0.1 17.1 15.8
BlackRock World M .727.5 -1.5 815.5 533.0
BlueCrest AllBlue . . .174.5 0.3 176.2 163.8
British Assets Tr . . . .130.7 -0.8 140.5 105.0
British Empire Se . . .518.0 -6.5 533.0 404.1
Caledonia Investm .1702.0 -21.0 1928.0 1539.0
City of London In . . .291.8 -0.7 303.2 235.0
Dexion Absolute L . .144.6 -1.2 151.0 131.2
Edinburgh Dragon . .238.0 0.0 262.1 205.3
Edinburgh Inv Tru . . .468.0 -3.0 492.2 372.2
Electra Private E . . .1722.0 16.0 1755.0 1177.0
F&C Inv Trust . . . . . .308.0 -1.0 317.5 251.4
Fidelity China Sp . . . . .94.0 -2.5 128.7 92.0
Fidelity European . .1234.0 -6.0 1287.0 916.0
Fidelity Special . . . . .557.5 -0.5 595.0 503.0
Herald Inv Trust . . . . .518.5 0.5 541.0 352.5
HICL Infrastructu . . . .116.3 -0.4 121.3 112.0
Impax Environment .117.5 -0.8 130.5 106.5
JPMorgan American .844.0 4.0 909.0 673.0
JPMorgan Asian In . .226.9 1.8 250.8 187.1
JPMorgan Emerging .580.0 0.5 639.0 479.5
JPMorgan European .908.0 -2.0 983.5 618.0
JPMorgan Indian I . . .415.5 0.5 502.0 394.1
JPMorgan Russian .654.0 -4.5 755.0 502.0
Law Debenture Cor . .363.1 1.4 372.4 273.3
Mercantile Inv Tr . . .1066.0 -5.0 1137.0 840.0
Merchants Trust . . . .409.0 -1.7 431.8 320.0
Monks Inv Trust . . . .344.2 -2.8 367.9 275.5
Murray Income Tru . .642.0 -4.5 672.0 518.0
Murray Internatio . . .939.5 -1.0 966.0 805.5
Perpetual Income . . .265.5 -0.8 276.0 212.0
Polar Cap Technol . .348.0 1.0 391.2 275.6
RIT Capital Partn . . .1307.0 14.0 1328.0 1107.0
Schroder Asia Pac . .217.8 -1.7 233.6 182.8
Scottish Inv Trus . . . .488.0 -1.5 517.0 401.5
Scottish Mortgage . . .711.0 2.0 764.0 533.0
SVG Capital . . . . . . . .259.5 1.3 279.8 137.8
Temple Bar Inv Tr . . .913.0 -4.0 947.5 717.0
Templeton Emergin .624.0 2.0 689.5 515.0
TR Property Inv T . . .193.0 -0.4 201.0 132.3
TR Property Inv T . . . .89.6 0.6 91.0 59.5
Witan Inv Trust . . . . .501.5 0.0 528.0 409.9
3i Group . . . . . . . . . . .264.0 -3.3 340.0 254.1
3i Infrastructure . . . . .119.5 -0.4 125.2 108.9
Aberdeen Asset Ma .220.5 -4.8 240.0 123.0
Ashmore Group . . . .381.2 -12.7 393.9 236.5
Berkeley Technolo . . . .4.3 0.0 9.0 2.2
Brewin Dolphin Ho . .154.0 -3.1 185.4 114.0
Camellia . . . . . . . . .10905.5 -44.011074.0 7600.0
Charles Taylor Co . . .134.1 -0.4 234.0 122.0
City of London Gr . . . .83.5 0.0 93.6 65.8
City of London In . . .427.0 3.0 461.5 273.5
Close Brothers Gr . . .759.0 1.0 888.5 664.0
Collins Stewart H . . . .78.8 0.3 90.8 67.3
Evolution Group . . . . .67.8 2.3 97.0 65.0
F&C Asset Managem .74.3 -0.4 92.9 47.5
Hargreaves Lansdo .614.5 -7.0 646.5 317.4
Helphire Group . . . . . . .3.6 0.1 44.0 3.2
Henderson Group . . .140.4 -1.8 173.1 118.1
Highway Capital . . . . .15.5 0.0 21.0 6.0
ICAP . . . . . . . . . . . . . .455.7 -0.9 570.5 380.2
IG Group Holdings . .428.8 -3.3 553.0 420.0
Intermediate Capi . . .312.1 -1.1 360.3 240.4
International Per . . . .344.0 -11.3 386.6 183.3
International Pub . . . .116.3 0.1 118.3 108.6
Investec . . . . . . . . . . .479.5 -7.8 538.0 429.2
IP Group . . . . . . . . . . . .48.8 -2.0 53.8 27.9
Jupiter Fund Mana . .261.0 -6.7 337.3 180.3
LMS Capital . . . . . . . . .62.8 -0.6 64.8 40.0
London Finance & . . .21.5 0.0 23.5 16.5
London Stock Exch .939.5 -15.5 990.0 544.0
Man Group . . . . . . . . .229.3 -3.3 311.0 206.4
Paragon Group Of . .199.0 -0.1 206.1 114.4
Provident Financi . . .972.0 -12.0 1033.0 728.5
Rathbone Brothers .1122.0 -8.0 1257.0 762.5
Real Estate Credi . . . . .1.4 0.0 2.4 0.9
RSM Tenon Group . . .25.0 -0.3 66.3 21.3
S & U . . . . . . . . . . . . .592.5 -27.5 708.5 482.5
Schroders . . . . . . . .1529.0 -18.0 1922.0 1154.0
Schroders (Non-Vo .1277.0 -17.0 1554.0 950.5
Tullett Prebon . . . . . .352.0 -3.6 428.6 307.5
Walker Crips Grou . . .49.0 0.0 50.9 46.5
BT Group . . . . . . . . . .195.9 -1.5 201.9 126.3
Cable & Wireless . . . .38.7 -0.8 61.4 38.4
Cable & Wireless . . . .49.1 -0.5 92.0 46.6
COLT Group SA . . . .141.9 -2.5 156.2 109.0
TalkTalk Telecom . . .148.9 -0.6 168.3 114.3
TelecomPlus . . . . . . .621.0 6.0 622.0 327.0
Booker Group . . . . . . .68.0 -0.4 70.3 39.5
Greggs . . . . . . . . . . . .508.5 -1.5 542.0 418.7
Morrison (Wm) Sup .295.2 -0.7 308.3 261.2
Ocado Group . . . . . . .213.7 -4.3 285.0 123.5
Sainsbury (J) . . . . . . .324.7 1.1 395.0 317.2
Tesco . . . . . . . . . . . . .397.4 -7.0 440.7 377.5
Associated Britis . .1057.0 -3.0 1182.0 940.0
Cranswick . . . . . . . . .740.0 -9.0 907.5 735.0
Dairy Crest Group . . .373.4 -14.6 424.9 339.7
Devro . . . . . . . . . . . . .265.0 -5.0 296.9 180.0
Premier Foods . . . . . . .27.0 -1.3 35.1 16.0
Tate & Lyle . . . . . . . . .645.0 -3.0 656.0 409.1
Unilever . . . . . . . . . .1934.0 -2.0 2000.0 1688.0
Mondi . . . . . . . . . . . . .595.5 -14.0 630.0 367.6
Centrica . . . . . . . . . . .318.7 -3.4 346.1 292.8
International Pow . . .312.5 -1.1 448.6 295.9
National Grid . . . . . . .589.0 -1.5 632.5 485.0
Northumbrian Wate .380.2 0.2 387.0 295.5
Pennon Group . . . . . .650.5 -8.0 675.0 545.5
Severn Trent . . . . . .1431.0 -9.0 1517.0 1216.0
United Utilities . . . . .595.5 -3.0 632.0 520.0
Cookson Group . . . . .649.0 -7.0 724.5 367.4
DS Smith . . . . . . . . . .214.0 -2.5 226.0 116.0
Glencore Internat . . .475.8 2.8 531.1 452.3
BAE Systems . . . . . .312.6 -1.3 369.9 294.7
Chemring Group . . . .640.5 -16.5 736.5 519.6
Cobham . . . . . . . . . . .209.0 -4.0 247.6 192.3
Meggitt . . . . . . . . . . . .355.6 -1.6 380.9 261.7
QinetiQ Group . . . . . .119.0 -0.3 136.3 96.7
Rolls-Royce Group . .597.5 -9.0 665.0 535.0
Senior . . . . . . . . . . . . .163.9 1.5 164.0 111.2
Ultra Electronics . . .1599.0 -28.0 1895.0 1522.0
GKN . . . . . . . . . . . . . .202.1 -6.4 237.1 109.3
Barclays . . . . . . . . . . .254.0 -3.4 344.0 250.3
HSBC Holdings . . . . .608.2 -0.4 730.9 596.2
Lloyds Banking Gr . . .48.1 0.4 77.6 46.5
Royal Bank of Sco . . .40.3 -0.5 52.1 37.6
Standard Chartere .1558.0 1.5 1950.0 1525.0
AG Barr . . . . . . . . . .1353.0 28.0 1395.0 1035.0
Britvic . . . . . . . . . . . . .400.0 -2.5 518.0 364.5
Diageo . . . . . . . . . . .1260.0 0.0 1301.0 1033.0
SABMiller . . . . . . . . .2150.0 -9.5 2306.0 1827.0
AZ Electronic Mat . . .307.9 1.4 338.1 248.5
Croda Internation . .1870.0 -47.0 1962.0 971.0
Elementis . . . . . . . . . .160.6 0.6 169.8 58.8
Johnson Matthey . .1940.0 -34.0 2119.0 1460.0
Victrex . . . . . . . . . . .1467.0 -23.0 1525.0 1049.0
Price Chg High Low
Bellway . . . . . . . . . . . .710.5 -15.0 753.5 511.0
Berkeley Group Ho .1136.0 -17.0 1161.0 763.5
Bovis Homes Group .426.5 -6.0 464.7 326.6
Persimmon . . . . . . . .455.6 -12.4 502.5 336.5
Reckitt Benckiser . .3372.0 -25.0 3648.0 3015.0
Redrow . . . . . . . . . . . .117.6 -1.3 139.0 97.5
Taylor Wimpey . . . . . . .35.6 -0.8 43.3 22.3
Bodycote . . . . . . . . . .349.6 -12.2 397.7 185.0
Charter Internati . . . .712.0 -24.0 853.5 567.0
Fenner . . . . . . . . . . . .386.6 -7.2 393.8 192.2
IMI . . . . . . . . . . . . . . .1012.0 -18.0 1112.0 657.5
Melrose . . . . . . . . . . .332.0 -3.2 355.5 203.4
Northgate . . . . . . . . . .313.8 -4.6 346.7 152.3
Rotork . . . . . . . . . . .1594.0 -28.0 1895.0 1254.0
Spirax-Sarco Engi . .1875.0 -25.0 2063.0 1346.0
Weir Group . . . . . . .2013.0 -27.0 2056.0 1024.0
Ferrexpo . . . . . . . . . . .430.7 -12.3 499.0 235.0
Talvivaara Mining . . .414.7 -7.1 622.0 352.3
BBAAviation . . . . . . .208.1 -2.1 240.8 175.0
Stobart Group Ltd . . .139.2 2.0 163.6 124.1
Admiral Group . . . . .1682.0 -27.0 1754.0 1390.0
Haynes Publishing . .245.0 -1.0 262.5 202.5
Huntsworth . . . . . . . . .74.8 1.3 87.5 65.0
Informa . . . . . . . . . . . .418.0 -8.8 461.1 342.1
ITE Group . . . . . . . . . .219.3 -2.7 258.2 136.2
ITV . . . . . . . . . . . . . . . . .66.3 -0.8 93.5 48.3
Johnston Press . . . . . . .4.9 0.4 20.0 4.3
MecomGroup . . . . . .239.5 -5.0 310.0 162.0
Moneysupermarket. .106.7 -2.0 109.3 64.6
Pearson . . . . . . . . . .1146.0 -19.0 1175.0 864.0
Reed Elsevier . . . . . .534.0 -5.5 590.5 490.2
Rightmove . . . . . . . .1087.0 -11.0 1104.0 596.5
STV Group . . . . . . . . .125.0 -5.6 168.0 66.0
Tarsus Group . . . . . .145.5 1.0 165.0 112.5
Trinity Mirror . . . . . . . .42.5 0.8 124.3 41.8
United Business M . .537.5 -3.0 725.0 483.8
UTV Media . . . . . . . . .128.4 -1.4 151.0 106.0
Wilmington Group . .120.0 -2.3 183.0 114.0
WPP . . . . . . . . . . . . . .738.5 -0.5 846.5 614.5
Yell Group . . . . . . . . . . .5.9 -0.0 30.7 5.7
African Barrick G . . .393.5 -6.5 670.0 383.0
Anglo American . . .2811.0 -52.5 3437.0 2254.0
Anglo Pacific Gro . . .300.0 -15.0 369.3 249.0
Antofagasta . . . . . . .1215.0 -25.0 1634.0 761.0
Aquarius Platinum . .304.7 -8.6 419.0 227.1
BHP Billiton . . . . . . .2275.0 -8.5 2631.5 1684.5
Amlin . . . . . . . . . . . . .403.2 -5.0 433.0 375.3
Beazley . . . . . . . . . . . .122.5 -1.0 139.2 109.1
Catlin Group Ltd. . . .410.3 -3.7 421.4 325.0
Hiscox Ltd. . . . . . . . . .415.0 1.3 424.7 336.1
Jardine Lloyd Tho . . .674.0 -7.5 709.0 521.5
Lancashire Holdin . . .660.0 6.5 662.3 491.1
RSA Insurance Gro . .133.9 -0.7 143.5 117.9
Aviva . . . . . . . . . . . . . .419.9 -5.2 477.9 305.8
Legal & General G . . .113.8 -0.7 123.8 75.6
Old Mutual . . . . . . . . .124.3 -1.5 145.2 102.0
Phoenix Group Hol . .617.0 -14.0 758.0 584.5
Prudential . . . . . . . . .704.0 -6.0 777.0 489.2
Resolution Ltd. . . . . .300.0 -4.8 316.1 211.3
St James's Place . . . .337.5 -2.1 360.4 204.2
Standard Life . . . . . . .201.9 -2.6 244.7 173.0
4Imprint Group . . . . .280.0 -5.3 295.0 195.0
Aegis Group . . . . . . .144.2 -2.6 152.0 103.6
Bloomsbury Publis . .129.0 -1.0 138.0 108.5
British Sky Broad . . .826.5 -7.5 849.0 693.5
Centaur Media . . . . . . .54.4 -0.4 73.0 45.8
Chime Communicati .290.0 5.0 298.5 158.0
Creston . . . . . . . . . . . .115.0 -1.5 121.0 78.5
Daily Mail and Ge . . .440.1 -3.4 594.5 433.0
Euromoney Institu . .646.5 -23.5 736.0 575.5
Future . . . . . . . . . . . . . .18.0 0.5 30.0 15.8
Centamin Egypt Lt . .114.5 -3.5 197.1 113.8
Eurasian Natural . . .723.0 -21.0 1125.0 715.0
Fresnillo . . . . . . . . . .1327.0 -19.0 1682.0 950.0
GemDiamonds Ltd. .252.1 0.3 306.0 186.3
Hochschild Mining . .461.7 -7.9 680.0 289.4
Kazakhmys . . . . . . .1240.0 -42.0 1671.0 965.0
Kenmare Resources . .45.5 -3.0 50.3 11.5
Lonmin . . . . . . . . . . .1382.0 -49.0 1983.0 1355.0
Petropavlovsk . . . . . .698.5 -10.0 1365.0 682.0
Randgold Resource 4580.0-131.0 6655.0 4425.0
Rio Tinto . . . . . . . . .4080.0 -31.5 4712.0 2880.5
Vedanta Resources 1935.0 -48.0 2583.0 1839.0
Xstrata . . . . . . . . . . .1248.0 -11.5 1550.0 845.8
Inmarsat . . . . . . . . . . .571.5 -13.5 762.0 565.5
Vodafone Group . . . .160.0 0.4 181.9 136.5
Genesis Emerging . .514.5 -2.5 568.0 439.1
Afren . . . . . . . . . . . . . .161.0 -3.6 171.2 79.2
BG Group . . . . . . . . .1327.5 -18.5 1564.5 1002.0
BP . . . . . . . . . . . . . . . .433.9 -1.6 509.0 302.9
Cairn Energy . . . . . . .403.3 -7.6 493.2 366.0
EnQuest . . . . . . . . . . .125.0 -1.7 158.5 96.0
Essar Energy . . . . . .418.8 -10.9 589.5 387.1
Exillon Energy . . . . . .405.9 -7.5 469.7 166.5
Heritage Oil . . . . . . . .233.3 2.3 486.0 225.7
JKX Oil & Gas . . . . . .271.7 -8.6 335.1 228.0
Premier Oil . . . . . . . . .465.1 -11.2 535.0 292.8
Royal Dutch Shell . .2105.0 -16.5 2326.5 1624.0
Royal Dutch Shell . .2111.5 -22.5 2336.0 1554.0
Salamander Energy .260.0 -0.9 317.6 210.0
Soco Internationa . . .369.0 -6.0 484.2 292.0
Tullow Oil . . . . . . . . .1249.0 -28.0 1493.0 991.5
Amec . . . . . . . . . . . .1089.0 -8.0 1251.0 805.5
Hunting . . . . . . . . . . .730.0 -3.0 817.0 439.4
John Wood Group . .634.0 -5.5 706.0 308.4
Lamprell . . . . . . . . . . .338.7 -5.3 364.4 186.3
Petrofac Ltd. . . . . . .1481.0 -34.0 1685.0 1141.0
Burberry Group . . . .1308.0 -12.0 1365.0 739.5
PZ Cussons . . . . . . . .362.0 -6.0 409.0 317.9
Supergroup . . . . . . . .837.0 18.5 1820.0 673.5
AstraZeneca . . . . . .3032.0 -63.0 3385.0 2801.5
BTG . . . . . . . . . . . . . .271.0 2.6 282.5 191.0
Genus . . . . . . . . . . . .1004.0 -9.0 1046.0 704.5
GlaxoSmithKline . . .1277.5 -9.5 1348.5 1095.0
Hikma Pharmaceuti .779.0 1.0 900.0 674.5
Shire Plc . . . . . . . . . .1826.0 -22.0 1961.0 1341.0
Capital & Countie . . .181.0 1.0 181.2 104.1
Daejan Holdings . . .2730.0 -1.0 2919.0 2251.0
F&C Commercial Pr .107.0 -0.7 108.0 88.0
Grainger . . . . . . . . . . .123.6 -2.8 128.2 86.3
Helical Bar . . . . . . . . .246.3 -5.4 339.5 243.9
London & Stamford .131.3 -1.4 140.0 110.3
Savills . . . . . . . . . . . . .388.2 -4.2 427.1 273.1
St. Modwen Proper . .184.0 0.7 192.0 135.4
UK Commercial Pro . .83.5 -0.5 85.5 74.3
Unite Group . . . . . . . .216.2 -5.5 229.8 170.5
Big Yellow Group . . .314.0 -5.0 353.3 287.1
British Land Co . . . . .581.5 -10.0 604.5 429.0
Capital Shopping . . .386.4 -0.4 424.8 301.3
Derwent London . . .1854.0 -11.0 1871.0 1208.0
Great Portland Es . . .434.7 -1.0 442.2 281.0
Hammerson . . . . . . . .474.4 -4.2 486.3 336.3
Hansteen Holdings . . .85.8 -0.5 89.3 59.4
Land Securities G . . .840.0 -1.5 848.0 545.0
SEGRO . . . . . . . . . . . .315.5 -4.5 331.3 250.2
Shaftesbury . . . . . . . .537.0 -2.0 541.0 349.3
Autonomy Corporat 1694.0 -52.0 1964.0 1271.0
Aveva Group . . . . . .1719.0 -24.0 1743.0 1127.0
Computacenter . . . . .453.0 3.0 489.7 260.0
Fidessa Group . . . . .1950.0 -17.0 1971.0 1300.0
Invensys . . . . . . . . . . .310.2 3.8 364.3 230.2
Kofax . . . . . . . . . . . . .453.5 -5.7 535.0 231.0
Logica . . . . . . . . . . . .129.0 -0.1 147.2 101.7
Micro Focus Inter . . .353.5 -14.3 541.5 276.0
Misys . . . . . . . . . . . . .381.8 -9.0 392.0 232.8
Sage Group . . . . . . . .280.8 -3.9 302.0 222.7
SDL . . . . . . . . . . . . . . .710.0 2.0 711.5 450.0
Telecity Group . . . . . .543.5 -4.5 548.5 377.0
Aggreko . . . . . . . . . .1866.0 -31.0 1935.0 1346.0
Ashtead Group . . . . .168.4 -9.6 207.9 77.0
Atkins (WS) . . . . . . . .779.0 -26.0 820.0 650.0
Babcock Internati . . .688.0 -4.0 704.5 492.8
Berendsen . . . . . . . . .488.0 -3.4 519.5 360.2
Bunzl . . . . . . . . . . . . .749.5 -10.0 783.0 658.0
Capita Group . . . . . . .744.5 5.0 799.5 635.5
Carillion . . . . . . . . . . .363.8 -4.3 403.2 291.2
De La Rue . . . . . . . . .768.5 -14.0 979.0 549.5
Electrocomponents .273.7 -13.1 294.9 205.7
Experian . . . . . . . . . . .779.5 -5.5 819.0 578.0
Filtrona PLC . . . . . . . .365.9 -3.6 385.5 209.2
G4S . . . . . . . . . . . . . . .279.1 0.2 291.0 237.7
Hays . . . . . . . . . . . . . .104.5 -1.5 133.6 88.4
Homeserve . . . . . . . .516.0 -10.5 532.0 398.6
Howden Joinery Gr . .101.2 -3.9 127.5 56.8
Intertek Group . . . . .1937.0 -30.0 2148.0 1437.0
Michael Page Inte . . .523.5 -3.0 567.0 349.4
Mitie Group . . . . . . . .232.9 -1.7 241.1 188.7
Premier Farnell . . . . .250.4 -24.2 308.8 210.2
Regus . . . . . . . . . . . . .107.4 -2.8 119.0 66.1
Rentokil Initial . . . . . . .94.8 -0.4 121.7 84.3
RPS Group . . . . . . . . .240.0 -4.4 251.4 169.8
Serco Group . . . . . . .565.5 -5.5 638.5 529.5
Shanks Group . . . . . .123.5 -3.3 130.9 96.5
SIG . . . . . . . . . . . . . . .139.0 -4.7 153.5 90.7
SThree . . . . . . . . . . . .386.9 -8.5 447.6 231.1
Travis Perkins . . . . .1011.0 -21.0 1127.0 709.0
Wolseley . . . . . . . . .1893.0 -19.0 2261.0 1223.0
ARM Holdings . . . . . .561.5 -15.5 651.0 270.5
CSR . . . . . . . . . . . . . .308.1 -2.8 447.0 280.9
Imagination Techn . .465.1 -14.9 502.0 273.0
Pace . . . . . . . . . . . . . .105.8 -2.5 231.8 93.0
Spirent Communica .148.0 -2.5 160.3 107.6
British American . .2637.0 -8.5 2745.5 2091.0
Imperial Tobacco . .1979.0 -9.0 2231.0 1784.0
Avis Europe . . . . . . . .310.8 0.1 311.0 184.0
Betfair Group . . . . . . .845.0 4.5 1550.0 753.0
Bwin.party Digita . . .135.0 -6.6 309.5 127.5
Carnival . . . . . . . . . .2200.0 -20.0 3153.0 2037.0
Compass Group . . . .579.0 -7.0 598.5 501.0
Domino's Pizza UK . .378.2 -2.9 586.0 366.1
easyJet . . . . . . . . . . . .347.7 -4.7 479.0 322.3
Enterprise Inns . . . . . .71.1 -1.8 122.7 70.6
FirstGroup . . . . . . . . .326.4 -1.7 412.6 311.3
Go-Ahead Group . . .1457.0 -33.0 1504.0 1042.0
Greene King . . . . . . .481.3 -3.6 502.5 392.1
InterContinental . . .1165.0 -23.0 1435.0 982.0
International Con . . .230.3 -2.3 305.0 186.5
JD Wetherspoon . . . .430.0 0.6 468.3 386.5
Ladbrokes . . . . . . . . .148.1 -2.3 152.2 122.7
Marston's . . . . . . . . . . .99.9 -1.4 117.1 90.4
Millennium& Copt . .475.6 -7.7 600.5 392.0
Mitchells & Butle . . . .324.4 -0.8 361.0 274.0
National Express . . .249.6 -1.9 270.2 213.4
Punch Taverns . . . . . .70.4 -1.4 90.4 58.0
Rank Group . . . . . . . .151.2 0.4 153.0 94.8
Restaurant Group . . .290.0 -5.5 335.0 208.2
Stagecoach Group . .242.6 0.4 249.8 160.7
Thomas Cook Group 130.7 -2.5 205.5 129.2
TUI Travel . . . . . . . . . .213.9 -1.2 271.9 190.0
Whitbread . . . . . . . .1510.0 -26.0 1887.0 1361.0
WilliamHill . . . . . . . . .215.7 -4.8 223.5 155.5
Abcam . . . . . . . . . . . .420.0 3.0 428.5 237.4
Albemarle & Bond . .338.4 -11.5 352.7 218.0
Amerisur Resource . .25.8 -0.5 29.0 11.5
Archipelago Resou . . .59.8 -3.1 66.8 32.3
ASOS . . . . . . . . . . . .2404.0 -46.0 2468.0 746.0
Aurelian Oil & Ga . . . .59.0 -1.0 92.0 35.8
Avanti Communicat .358.8 -2.8 735.0 333.5
Avocet Mining . . . . . .182.0 -0.5 253.5 112.0
Blinkx . . . . . . . . . . . . .122.8 -2.3 148.8 33.5
Borders & Souther . . .52.5 -1.3 93.0 52.0
BowLeven . . . . . . . . .321.0 1.8 398.0 126.3
Caledon Resources .108.3 -0.3 108.7 23.3
Cape . . . . . . . . . . . . . .540.0 -16.0 567.0 200.3
Conygar Investmen .114.0 -0.9 120.0 101.3
Cove Energy . . . . . . . .82.5 2.0 112.8 47.5
Daisy Group . . . . . . . .116.4 -0.6 121.0 86.0
Desire Petroleum . . . .18.0 2.0 168.5 11.3
EMIS Group . . . . . . . .545.0 5.0 555.5 303.5
Encore Oil . . . . . . . . . .56.8 -0.8 151.5 28.5
Faroe Petroleum . . . .146.0 -6.3 218.3 115.0
Gulfsands Petrole . . .240.0 -1.3 401.5 233.3
GWPharmaceutical .118.0 -1.0 141.0 83.0
Hamworthy . . . . . . . .648.0 -4.0 684.5 293.0
Hargreaves Servic .1022.0 -29.0 1053.8 556.5
Healthcare Locums . .112.5 0.0 112.5 112.5
Immunodiagnostic . .962.0 -1.0 980.0 575.0
ImpellamGroup . . . .356.1 -8.9 387.5 84.0
James Halstead . . . . .450.0 0.0 485.0 306.0
Kalahari Minerals . . .234.0 -4.0 301.0 142.0
London Mining . . . . .347.8 -4.8 436.5 206.0
Lupus Capital . . . . . .115.0 -3.0 150.0 72.0
M. P. Evans Group . .438.0 -1.3 500.5 329.0
Majestic Wine . . . . . .466.5 1.5 470.3 289.5
May Gurney Integr . .274.8 -10.3 285.0 177.0
Monitise . . . . . . . . . . . .27.5 -1.0 29.5 17.8
Mulberry Group . . . .1450.0 115.0 1610.0 200.5
Nanoco Group . . . . . . .83.3 -1.3 115.8 68.0
Nautical Petroleu . . .315.0 -16.3 547.0 128.0
Nichols . . . . . . . . . . . .557.5 -18.0 578.0 378.0
Numis Corporation . .102.9 0.3 146.5 94.0
Patagonia Gold . . . . . .45.8 0.3 59.3 12.5
Pursuit Dynamics . . .289.0 29.0 700.0 196.0
Rockhopper Explor .266.3 -7.0 510.0 202.5
RWS Holdings . . . . . .453.0 -9.6 472.0 239.0
Songbird Estates . . .158.0 -2.3 160.3 135.0
Sterling Energy . . . . . .35.0 0.0 145.3 35.0
Valiant Petroleum . . .600.5 6.5 761.5 504.0
Vatukoula Gold Mi . . .102.8 -4.3 227.0 84.0
Young & Co's Brew . .647.5 -7.0 685.0 510.0
Laird . . . . . . . . . . . . . .188.9 37.6
Home Retail Group . .175.3 2.7
Supergroup . . . . . . . .837.0 2.3
AG Barr . . . . . . . . . .1353.0 2.1
Renishaw . . . . . . . . .1715.0 1.5
Stobart Group Ltd. . .139.2 1.5
Inchcape . . . . . . . . . .395.0 1.4
Invensys . . . . . . . . . .310.2 1.2
RIT Capital Partne . .1307.0 1.1
Heritage Oil . . . . . . . .233.3 1.0
Premier Farnell . . . . .250.4 -8.8
Kenmare Resources . .45.5 -6.1
Ashtead Group . . . . .168.4 -5.4
JD Sports Fashion . .877.0 -5.1
Anglo Pacific Grou . .300.0 -4.8
Dixons Retail . . . . . . .16.7 -4.8
Bwin.party Digital . . .135.0 -4.7
Electrocomponents .273.7 -4.6
Premier Foods . . . . . . .27.0 -4.5
Barratt Developmen .108.1 -4.0
Risers Fallers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
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ELECTRONIC & ELECTRICAL EQ.
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FORESTRY & PAPER
GAS, WATER & MULTIUTILITIES
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INDUSTRIAL ENGINEERING
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REAL ESTATE INVEST. & SERV.
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AUTOMOBILES & PARTS
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NONEQUITY INVESTM. COMM.
Tsy 3.250 11 . . . . .101.31 -0.02 103.8 101.3
Tsy 9.000 11 . . . . .100.57 -0.04 108.9 100.6
Tsy 2.500 11 . . . . .307.52 -0.01 310.0 307.5
Tsy 5.000 12 . . . .103.19 -0.03 107.2 103.2
Tsy 5.250 12 . . . .104.47 0.00 108.5 104.4
Tsy 9.000 12 . . . .109.34 0.00 116.7 108.6
Tsy 4.500 13 . . . .106.39 0.06 109.2 105.8
Tsy 2.500 13 . . . .287.42 -0.11 287.7 274.2
Tsy 8.000 13 . . . . .116.03 0.07 121.3 115.8
Tsy 5.000 14 . . . . .111.58 0.17 114.1 109.2
Tsy 7.750 15 . . . .104.28 0.00 110.8 76.0
Tsy 8.000 15 . . . .126.82 0.21 131.6 123.7
Tsy 4.750 15 . . . . .112.30 0.22 114.7 108.6
Tsy 2.500 16 . . . .333.57 -0.16 334.1 304.4
Tsy 4.000 16 . . . .109.49 0.26 111.4 104.9
Tsy 12.000 17 . . .126.81 0.00 185.9 126.0
Tsy 1.250 17 . . . . .112.04 -0.12 112.2 104.9
Tsy 8.750 17 . . . .136.54 -0.03 142.2 132.9
Tsy 5.000 18 . . . . .115.23 0.37 117.6 109.7
Tsy 4.500 19 . . . . .111.47 0.45 113.8 105.4
Tsy 3.750 19 . . . .105.62 0.49 107.7 99.4
Tsy 4.750 20 . . . . .112.86 0.50 115.9 106.6
Tsy 2.500 20 . . . .341.19 0.04 341.6 303.8
Tsy 8.000 21 . . . .141.51 0.50 147.1 133.8
Tsy 4.000 22 . . . .105.06 0.51 108.4 99.0
Tsy 1.875 22 . . . . .117.66 -0.14 117.9 108.5
Tsy 2.500 24 . . . .298.92 -0.02 299.6 262.1
Tsy 5.000 25 . . . . .113.82 0.56 118.5 107.4
Tsy 1.250 27 . . . . .110.77 -0.22 111.2 100.5
Tsy 4.250 27 . . . .103.96 0.53 108.8 97.9
Tsy 6.000 28 . . . .126.22 0.53 132.7 119.5
Tsy 4.750 30 . . . .109.57 0.61 115.0 103.0
Tsy 4.125 30 . . . .283.57 -0.22 284.4 248.7
Tsy 4.250 32 . . . .102.53 0.62 107.8 96.0
Tsy 4.250 36 . . . .101.86 0.66 107.4 95.0
Tsy 4.750 38 . . . . .110.42 0.67 116.5 102.8
Tsy 4.500 42 . . . .105.95 0.00 112.8 98.9
% %
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Wealth Management | Markets
the genteel in you, theres a plethora of
themed afternoon teas on offer. The
Landmark London Hotel (www.landmarklon-
don.co.uk) is serving Wimbledon tea with
Pimm's Jelly, fresh strawberries and
cream and green tea tennis ball cup-
cakes. Dukes London Hotel
(www.dukeshotel.com) simultane-
ously, is serving traditional tea
with champers in a spe-
cial Wimbledon suite.
Cocktail fans are also in
for a treat. The Parlour in
Canary Wharf
(www.theparlourbar.co.uk),
and The Folly (www.thefolly-
bar.co.uk) in the City is intro-
ducing six Wimbledon
themed tipples, including a
royal Pimms topped with
sparkling wine and adult
Robinsons Squash to get in to the mood.
Enjoy! Lucie Greene
Lifestyle
The classic smart-casual jacket
has been brought up to date,
says Timothy Barber
Going out
in a blazer
of glory
W
EARING a morning suit as you
have to for Ascot may not be to
everyones taste, but at least it
means you dont have to worry
about what outfit to choose. For men head-
ing to the corporate hospitality
stands at Wimbledon next week, or
to the other summer events where
sun, sport and champagne lubri-
cate the schmoozing of clients,
theres something of a sartorial
conundrum to deal with how to
dress smartly for warm weather?
The hospitality boxes at
Wimbledon or Lords are normally
full of men in their work suits, sans
tie, as though dressed for Blair-era
cabinet meeting. It really doesnt
shout suaveness.
For something with a bit more
panache, it all comes down to the
blazer. The classic mens smart-
casual jacket has been reborn in the
last couple of years, going from the
voluminous, double brass-buttoned
garment of old to something slim-
mer, lighter and bang on trend when
mixed with natty chinos. Not only has the
cut and structure been streamlined, but
navy blue is not the only blazer colour
pale pastel tones and gentle stripes are
viable, or you can take a leap out of Roger
Federers book with an cream number.
You want something lightweight, and
an unlined blazer in a high-twist cotton or
summer-weight wool is perfect, says Will
Forrester, brand director of Gieves &
Hawkes, which has its own dedicated blaz-
er room in its 1 Savile Row HQ. Keep it real-
ly basic, with a plain shirt with a white
collar, and dont over accessorise.
Ryan Hackett, design director at Austin
Reed, agrees. While the artfully crumpled
linen suit or lightweight seersucker suit are
well-worn summer favourites, he says the
key right now is getting deliberate sepa-
HOW LADIES CAN
LOOK SMART BUT
STYLISH AS WELL
Q.
I am hosting a number of cor-
porate client events this sum-
mer and am struggling with
what to wear. I want to look profes-
sional and yet not boring. What do
you suggest?
A.
It is important when hosting
events to make an effort with
your appearance. You have to
also accept that this isnt the time to
experiment with a fashion-forward
edgy look. You dont want to intimidate
the very people that you are entertain-
ing. For a corporate work function, the
most important element is to ensure
you are wearing something that fits
you well and doesnt expose too much
flesh. Constantly checking to see if
your bra straps are showing, adjusting
a belt or pulling at your skirt will com-
municate a message that you are ill at
ease, making your guests feel uncom-
fortable.
If you feel happiest in separates then
opt for a modern version of the trouser
suit in a beautiful fabric that most flat-
ters your shape. A mid to high waisted
trouser, showing off your smallest point
is usually best. Team with a loose slash
neck silk top, tucked in. For a more con-
temporary alternative you could opt for a
long skirt in an exquisite print or loose
silk shorts at an appropriate length but
these would need to be balanced with
something buttoned up and conservative
on top. Usually, a dress with some kind of
a sleeve is the easiest option and least
hassle on the day. Look for something
with a degree of stretch in the fabric
which will ensure it doesnt crease and
allows you to move easily. A classic
shape in a digital print or block colour
will also strike the right balance between
being fun and appropriate.
As for your shoes, make sure youve
had time to break them in, you dont
want to be limping around or struggling
to smile through the pain.
If in doubt, always ensure you have a
fabulous jacket. It is really worth invest-
ing in a beautiful piece which you can
wear when the weather turns nasty and
still look chic in.
Clare Rous & Kara Iland
FOUNDERSOF ROUSILANDMEMBERS BOUTIQUE,
WWW.ROUSILAND.COM
Q A
&
Roger Federer in his cream Wimbledon blazer
rates right. You dont want to look too
casual, but you also dont want to look like
you just stepped out of the office, he says.
You need to find a jacket that doesnt look
like youve taken your suit jacket and
changed the trousers. For a more edgy
take on the classic chino/blazer look, he
recommends coloured chinos. Theyre
very in fashion right now, rounded off
with boating shoes or a very smart loafer.
Indulge yourself with
these Wimbledon treats
W
IMBLEDON Tennis is about to
kick off and with it the bliss of
fresh cut grass courts, the oohs
and aahs of the crowds, after-
noons spent glued to the television.
Tickets for the tournament, as usual, are
gold dust, but worry if you havent secured
one. Theres plenty of ways to celebrate the
event in style. Fans can watch the tennis
live with free outdoor screenings at
Cardinal Place, Victoria, Bankside, on the
Southbank, and New Street Square,
Holborn (http://greatbritishsummer11.com). BP
Above, the Wimbledon
Tennis logo. Right,
fresh strawberries and
a jug of Pimms
is also showing the event from its BP
Summer Screen at Canary Wharf. For
screenings with service, The Thomas
Cubitt (www.cubitthouse.co.uk) is showing the
tennis live at its bar and The Paramount
(www.paramount.uk.net) rooftop bar at
Tottenham Court road is showing the
event on widescreen televisions with a full
compliment of drinks. The Coq dArgent
(www.coqdargent.co.uk), meanwhile, is trans-
forming its outdoor terrace into an alfres-
co screening room.
Should the tennis bring out a spot of
GET THE LOOK
1 Stone single breasted jacket by Gieves & Hawkes, 600
2 Light blue cargo trousers by Gieves & Hawkes, 175, www.gievesandhawkes.com
3 Cotton trousers by Brooks Brothers, 85, www.mrporter.com
4 Cotton blazer by Richard James, 345, www.mrporter.com
5 Ticking stripe jacket by Austin Reed, 199, www.austinreed.co.uk
6 Roll-up Panama hat by Dunhill, 415, www.mrporter.com
5
4
6
2
3
1
POTICHE Dark French comedy starring Catherine
Deneuve and Gerard Depardieu.
LIFE IN A DAY Inspirational documentary compiled of
footage filmed around the world on a single day.
THE MESSENGER Searing drama about the effects of
war on US soldiers and their families.
FILM
TRUE GRIT The Coen brothers remake of the John
Wayne classic, with Jeff Bridges.
PAUL Simon Pegg and Nick Frost score comedy gold
again in this extra-terrestrial caper.
INSIDE JOB Oscar-winning examination of the causes
behind the credit crunch, with debatable conclusions.
DVD
BON IVER Eponymous sophomore album from soulful,
talented singer-songwriter Justin Vernon.
THE FEELING Power pop also-rans return with third
album, Together we were Made.
PATRICK WOLF Fourth album from the prolific musi-
cal eccentric, titled Lupercalia.
MUSIC
ALICE: MADNESS RETURNS (PC, PS3, X360) Long-
awaited sequel, a horror take on Alice in Wonderland.
CHILD OF EDEN (PS3, X360) Ingenious rhythm
action game fusing sound, vision and touch.
DUNGEON SIEGE III (PS3, X360, PC, ONLIVE) Just
what was needed, more role-playing fantasy bobbins.
GAMES
ALSO OUT THIS WEEKEND
ENTERTAINMENT
Film
THE GREEN LANTERN
Cert: 12A
hhhii
IN yet another comic book adaptation
Ryan Reynolds stars as Hal Jordan, a vain,
daredevil pilot who would be happy sav-
ing the world in only his pants. Having
been chosen as the next Green Lantern,
his mission is to stop the evil alien
Parallax from taking over the universe by
using the benevolent power of will
against the opposing force of fear.
Reynolds does a decent job going from
arrogant lothario to likeable hero, pout-
ing his way through the cheeky dialogue.
He is capable of pulling off a performance
of greater depth than he is afforded here
perhaps the producers realised that few
audience members will be able to concen-
trate on his face this is about ripped abs.
In addition to the absence of a meaty
personal struggle, its a shame that Peter
Sarsgaards creepy turn as the depraved
xenobiologist isnt given more space. In
recent years we have been spoiled by
Batman films captivating interplay
between leads and villains, but that never
really materialises here.
Despite these flaws and the obligatory
underdeveloped female lead (Gossip Girls
Blake Lively), the film stands up as an
entertaining, action-packed summer
blockbuster with special effects that far
outstrip the writing. A sequence after the
closing credits suggests a sequel is in the
offing.
Hayley Wright
THE BEAVER
Cert: 12a
hhiii
NO wonder Mel Gibsons gone off the rails.
One minute his character is hearing voices
in the forgettable comedy What Women
Want, next hes chronically depressed and
having sex with a puppet strapped to his
arm in this film. The question is whether
the Beaver can restore his cinematic repu-
tation?
The answer is no. In this train wreck
Gibson plays executive Walter Black, a long-
term depressive who suddenly becomes
empowered by communicating through a
puppet beaver in a ghastly mockney accent.
Its not funny, its not clever and the tone is
so horribly confused that at points its like
watching a striptease to the sound of the
Funeral March.
Anton Yelchin, best known for the recent
Star Trek and Terminator films, makes a
valiant effort as Gibsons estranged son, but
even some of his scenes with fellow dys-
functional teen Jennifer
Lawrence smack of cringeworthy
sentimentality. As director and
co-star, Jodie Foster must shoul-
der most of the blame. Not least
because the film manages to triv-
ialise mental illness by failing to
examine why Walter gets him-
self into such a desperate state
in the first place.
Still, Gibson must be pleased to
have nabbed the role after people
like Jim Carrey and Steve Carell
had reportedly turned it down.
The beaver must also have been chuffed
to usurp the, er, bag of talking poo which
the writer originally intended to be the
vehicle for Walters mental liberation. No
really. The latter is really a better
metaphor for this film, and, lets face it,
dear old Mels career these days.
HW
BAD TEACHER
Cert: 15
hhhii
ITS certainly refreshing to see Cameron
Diaz in a role to relish these days, after the
dreck shes been starring in of late, like
Knight and Day and the Box. Diaz has
always had more to offer than mere looks,
as her Shrek voiceovers and films like
Gangs of New York and Being John
Malkovich suggested, but that seemed to
have been forgotten.
Here she shows that sharp comic tim-
ing is still in her arsenal, playing a mon-
strously irresponsible beeyatch of a
teacher a woman more interested
in drinking, smoking pot and getting
together funds for a boob job (with
which to snare a rich husband after
her sugar daddy fianc dumped her)
than leading her students towards
enlightenment.
That all changes when Justin
Timberlakes goody-two-shoes supply
teacher and heir to a fortune enters
the frame, and Diazs character,
Elizabeth Halsey, spots husband materi-
al. Meanwhile, Jason Segels sports
teacher is for some reason carrying a torch
for her, while a rival teacher played by the
talented Brit actress Lucy Punch stands in
the way of sealing the deal with
Timberlakes pious dork.
Theres lots of fun to be had here, though
the material is uneven and nowhere near
as deliciously cynical as the vastly superior
Billy Bob Thornton film, Bad Santa. Some
of the jokes fall flat, and sometimes theyre
simply too few and far between. But as a
reminder of just how good Cameron Diaz
can be, this is worth catching.
Timothy Barber
Ryan Reynolds stars as the latest comic
book superhero to make it to the big screen
2011s most
colourful hero
THEATRE Shrek the Musical The cartoon ogre
makes it to the London stage, with pretty won-
derful results. A big, family-friendly hit, and
possibly the heir to the Lion Kings throne?
ART Toulouse-Lautrec Exhibition examining
the relationship between the height-challenged
chronicler of the seedier side of Parisian life in
the Belle Epoque and the Moulin Rouge
dancerJane Avril, who featured in many of his
famous works. At the Courtauld Gallery.
FILM KaboomMaverick director Greg Araki
gives us the end of the world through the eyes
of a sex-mad student and his weird compadres.
ART Royal Academy Summer Exhibition The
annual survey of contemporary British art is
back at the Royal Academy, mixing works by
established, invited artists and those submitted
by open submission. It takes in painting, sculp-
ture, print, architecture, installation and every-
thing in between.
THEATRE The Government Inspector The
Mighty Booshs Julian Barratt stars in the
Young Vics hugely imaginative version of
Gogols classic comedy.
FILM Le Quattro Volte A beautiful, meditative
vision of life in rural Italy.
Above, Ryan Reynolds in the Green Lantern. Below, Cameron Diaz in Bad Teacher.
NOW ON IN LONDON SIX OF THE BEST
T
E
R
R
E
S
T
R
I
A
L
THE KENNEDYS
BBC2, 9.00PM
Drama, starring Greg Kinnear as John
F Kennedy, charting the political
conflicts the American President had
to deal with during his term in office.
8 OUT OF 10 CATS
CHANNEL4, 9.00PM
New series. Jimmy Carr returns with
the irreverent panel show, welcoming
new team captain Jon Richardson
and old hand Sean Lock.
CASTLE
CHANNEL 5, 9.00PM
American crime drama, starring
Nathan Fillion as an author shadowing
a New York detective he uses as the
inspiration for his literary work.
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmLive Super League 10pm
The Sky Sports Years 11pmTest
Cricket 1amThe Sky Sports Years
2amRoad to London 2.30amTest
Cricket 4.30am-6amSuper
League
SKY SPORTS 2
3pmLive US Open Golf 12am
Super League 1.30amLondon
Nocturne Cycling 2.30amTime of
Our Lives 3.30amIAAF Athletix
Weekly 4amATP Tour Uncovered
4.30amLondon Nocturne Cycling
5.30am-6amIAAF Athletix
Weekly
SKY SPORTS 3
7pmLondon Nocturne Cycling
8pmTest Cricket 10pmWWE:
Late Night Smackdown 12am
WWE: Late Night Bottom Line
1amWWE Wrestling 2amTight
Lines 3amRacemax 4am-6am
Horse Trials
BRITISH EUROSPORT
11.30amLive Tennis 7.15pm
Tennis 8.45pmCycling 9.45pm
Horse Racing Time 10.15pmWorld
Superbikes 11.15pmCycling
12.15am-12.45amVideo Gaming
ESPN
6pmNBA Classics 8pmWorld
Rally Championship 8.30pm
Premiership Rugby Union 10.30pm
ESPN MMA Live 11.15pmUFC
Unleashed 12.15amESPN Kicks:
Extra 12.30amICC Cricket World
Magazine 1amWorld Rally
Championship 1.30amPlanet
Speed 2amLive Friday Night
Fights 4amESPN Kicks: Extra
4.15amESPN MMA Live
5am-6amUFC Unleashed
SKY LIVING
7pmCSI: Crime Scene
Investigation 8pmNikita 9pm
Criminal Minds 10pmCSI: Miami
11pmCriminal Minds 12am
CSI: Crime Scene Investigation
1.50amGhost Whisperer 2.40am
Supernatural 3.30amCharmed
5.10am-6amMaury
BBC THREE
7pmDoctor Who 8.50pmGreat
TV Mistakes: Mishaps from Fawlty
Towers, Friends and EastEnders.
9pmWorlds Craziest Fools
9.30pmLee Nelsons Well Good
Show: Jason Bent demonstrates
his unusual training tips. 10pm
EastEnders 10.30pmYoung, Rich
and Househunting 11pmFamily
Guy 11.45pmIdeal 12.15am
Worlds Craziest Fools 12.45am
Angry Boys 1.45amLee Nelsons
Well Good Show2.15amIdeal
2.45amDoctor Who 3.50am
Angry Boys 4.50am-5.20am
Young, Rich and Househunting
E4
7pmHollyoaks 7.30pmFriends
9pmGoks Clothes Roadshow
10pmWife Swap USA 11pmMade
in Chelsea 12.05amMy Name Is
Earl 1amGoks Clothes Roadshow
1.55amUgly Betty 2.35amWife
Swap USA 3.30amPrivileged
4.10amReaper 4.55am-6am
Switched
HISTORY
7pmHeir Hunters 8pmStorage
Wars: The buyers travel to the
latest set of auctions in Fullerton in
California. 9pmAmerican Pickers
10pmAncient Aliens 11pmClash
of the Gods 1amHow London Was
Built 2amThe Roman Invasion of
Britain 3amHeir Hunters 4am
How the Earth Was Made
5am-6amAx Men
DISCOVERY
8pmBritains Toughest Cops 9pm
Whale Wars 10pmGold Rush
11pmThrough the Wormhole with
Morgan Freeman 12amBear
Grylls: Born Survivor 1amWhale
Wars 2amGold Rush 3am
Deadliest Catch 3.50amFuture
Weapons 4.40amTreasure Quest
5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmBringing Home Baby 8pm
Little People, Big World 9pm19
Kids and Counting 10pmLittle
People, Big World 11pmIm
Pregnant and Have Cancer
11.30pmIm Pregnant and a
Nudist 12am19 Kids and Counting
1amLittle People, Big World 2am
Im Pregnant and Have Cancer
2.30amIm Pregnant and a Nudist
3amLittle People, Big World 4am
A Baby Story 5am-6amBringing
Home Baby
SKY1
7.30pmFuturama 8pmSimpsons
9pmRaising Hope 9.30pm
Simpsons 10pmWall of Fame
10.30pmSpartacus: Blood and
Sand 11.40pmBrit Cops 12.40am
Night Cops 1.35amDog Squad
2amNCIS: Los Angeles 3.30am
Fringe 4.15amAirline 5.05amBite
Size Brainiac 5.10am-6amDont
Forget the Lyrics
BBC2 ITV1 CHANNEL4 CHANNEL5
S
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E
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L
I
T
E
&
C
A
B
L
E
TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show; BBC News
8pmEastEnders
8.30pmA Question of Sport
9pmMy Family
9.30pmMiranda
10pmBBC News
10.25pmRegional News
10.35pmThe Graham Norton
Show
11.20pmThe National Lottery
Friday Night Draws
11.30pmFILMThe Last Castle
1.35amThe One Show;
Weatherview 2.40amSign Zone
4.40am-6amBBC News
6pmEggheads
6.30pmBritains Empty Homes
7pmCoast: The team explores
the Caledonian Canal.
8pmGardeners World
9pmCHOICE The Kennedys
9.45pmThe Kennedys
10.30pmNewsnight
11pmThe Review Show;
Weather
11.50pmFILMThe King of
Comedy: Black comedy,
starring Robert De Niro and
Jerry Lewis. 1983.
1.35amFILMGlastonbury.
Documentary about the music
festival. 2006. 3.45am-6amClose
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmCoronation Street
8pmLove Your Garden
8.30pmCoronation Street
9pmPaul OGrady: Lady Gaga
Special
10pmITV News at Ten
10.30pmLondon News
10.35pmFILMMaverick.
1994.
12.50amThe Zone; ITV News
Headlines
2.55amFILMIgby Goes Down.
2003. 4.30am-5.30amITV
Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.25pm4thought.tv
7.30pmJamies 30 Minute Meals
8pmCome Dine with Me 9pm
CHOICE 8 Out of 10 Cats 9.30pm
King Of 10pmAlan Carr: Chatty
Man 11.05pmThat Peter Kay Thing
11.40pmPhoneShop 12.10am
Music on 4: The Album Chart Show:
Hard-Fi 12.45amMusic on 4:
Hollyoaks Music Show1.10amMy
Name Is Earl 1.55amThe Real
Housewives of New Jersey
2.40amUgly Betty 4.10amHill
Street Blues 5amGrudge Match
5.10am-5.55amCountdown
6pmHome and Away
6.25pmOK! TV
6.55pm5 News at 7
7pmCricket
8pmEddie Stobart: Trucks and
Trailers; 5 News at 9
9pmCHOICE Castle
10pmLaw & Order
11pmCSI: Miami
11.55pmRough Guide to Eco
Escapes
12.15amSCXTRA
12.45amSuperCasino 4.05am
Motorsport Mundial 4.30amNicks
Quest 4.55amRough Guide to Eco
Escapes 5.10amWildlife SOS
5.35am-6amHouse Doctor
1 2 3 4 5
6 7
8
9
10 11 12
13 14 15
16 17 18 19
20
21
22
23
13 6
11 12
8
41
35 20
10 30
24 15
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25 14
7 23
3
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4
34
9
12
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17
11
19
6
18
33
4
30
15
3
16
7
6
21
10
Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Ms Hunniford, radio
and TV presenter (6)
6 Contusion (6)
8 Flat mass of frozen
water oating
at sea (3,4)
9 Narrow steep-
sided valley (6)
10 Arid regions of
the world (7)
13 Lyricist, ___
Gershwin (3)
14 Device used to
propel a boat (3)
17 Solicit votes (7)
20 Stay away from
deliberately (6)
21 Cocktail of vermouth
and gin (7)
22 Sharp piercing cry (6)
23 Madden (6)
DOWN
1 Formal association of
people with similar
interests (5)
2 Roof-supporting
beam (6)
3 Terminate before
completion (5)
4 Coastal area between
La Spezia in Italy and
Cannes in France (7)
5 Suferer from
Hansens disease (5)
7 Motive (6)
11 Heartfelt (7)
12 Elongated cluster
of owers (6)
15 New personication
of a familiar idea (6)
16 Banquet (5)
18 Conscious, aware (5)
19 River which ows
through Paris (5)
L
I
S
M
K K
H
E
A

4

4

4

4
S C R A W L A G E S
L E I B K
O A U T O C R A C Y
O R C H A A
P A T O I S D A R E
D S N A R E I
D I E T D A S H E R
A R T U S E
U L T I M A T U M G
R C L U A
N I G H T E A S E L
8 9 2 6 3 8
5 4 2 1 3 5 1 7
2 7 6 9 7 8
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WORDWHEEL
The nine-letter word was
REPLENISH
Lifestyle | TV&Games
Living| Country Property
WIMBLEDON
BEGINS
FULL PREVIEW IN
MONDAYS PAPER
31
C
OLIN Ellis, the chief economist
at the BVCA, has been working
in the City for over 15 years. He
had always lived in London, but
seven years ago, he upped sticks and
moved his wife and kids to Surrey,
exchanging a one-bed flat in Clapham
for a three-bedroom house in
Wouldingham. Now he commutes for
half an hour on the overland train
into London Bridge. Id already had
my fun in the city. I wanted big green
spaces proper green space, not little
pockets of green in parks and more
space. Its difficult to get that combi-
nation unless you move out of the
city.
Ellis is a prime example of the well-
established trend for selling up and
moving out to the countryside. James
Grillo, a specialist in the Home
Counties area for Chesterton
Humberts says the movement has
been gathering speed now that the
housing market has started to recover.
With the cost of private school and
London property shooting up, lots of
parents are opting to move out for
more space and access to better
schools.
Grillo says that the out-shifters are
usually successful City types who
initially buy a property in
London, sending their children
to private nurseries and pri-
mary schools, until they
their reach mid-to-late
thirties and are think-
ing about the availabili-
ty and expense of
secondary schooling.
Money certainly goes
further outside of London,
but by how much depends
entirely where you want to
live. Grillo says properties in
the classic commuter belt
towns of Guildford, Dorking
and Basingstoke do not come
cheap. Whereas emerging
commuter belt in Ashford,
for instance, are still at a slight
discount because not everyone
has cottoned on the speedier
commute that can be had
through the new Hindhead
Tunnel and along the A3. In
Guildford, for example, out-
shifters need 2m to land them-
selves the archetypal five-bedroom
country cottage. In Ashford, one
only needs 1.25m.
There are other quirks in the
market that savvy investors can cap-
italise on. For some reason and I
cant work out why towns north of
London like Hitchin and Harpenden
are neglected and come at a slight dis-
count in comparison to Surrey. They
have are equally leafy and offer speedy
commutes into the City. Tim
Hubbard of Property Vision says buy-
ers who opt for these less convential
Home County hot spots could save
themselves 10-20 per cent on a like-for-
like property.
Ellis was more interested in lifestyle
benefits when picking his country
home: I love the shift in pace of life.
Its nothing like London. Everything
takes longer but nobody is in a rush.
Perhaps Im getting old, but I really
like it.
Country life is not without its draw-
backs. Commuters do, of course, love
to moan about their commute. A 12-
month season ticket from Guildford
to London Waterloo will cost you
2,916 and thats not including the
odd occasion you miss the last train
around midnight and are forced to get
a taxi home. Ellis says: I dont mind
my commute too much, but I could do
without the walk up
the hill to the
station in the
mo r n i n g .
Annoy i ng,
but worth it for
the better qual-
ity of life.
Want a bigger house and a better
quality of life? Move out into the
provinces, says Donata Huggins
Switching the
city pad for a
countryside pile
Could this
be you?
Pictures:
GETTY
The classic coun-
try pile that City-
types opt for in
their late thirties.
theres more for
your money than
in Berkshire,
says Hannon.
Other top areas
i n c l u d e
Newmarket and
Blenheim. For
Polo, Cirencester, Beaufort, and
Kirklington are good. Cheltenham
meanwhile, is the home of national
hunt racing. Jones-Davies recommended
Northamptonshire as a hotspot for more
affordable properties. Theres more acre
Living | Country
How to scoop the perfect equestrian pad
R
OYAL Ascot fever is putting horse
racing centre stage this week.
Droves of fans have been making
their way to the event, donning
fascinators (the girls that is) and morning
suits to witness the thrilling final fur-
longs. But what if you fancied your own
slice of horse-paddock heaven? According
to experts its not as hard as you think.
City A.M. got the low-down on buying the
perfect equine property.
GET THE RIGHT LAND: You need flat land,
especially for racing, says Robert Jones-
Davies, agent at property search company
Middleton Advisors. A slight gradient in
places is good for keeping the horses fit,
adds Henry Hannon, from buying agents
Property Vision. He added: Soil is impor-
tant. You need chalky or free draining soil
to keep the top layer dry. Boggy soil is bad
for horses and is easily damaged. Access
is also key, says Hannon. Make sure you
have access to bridal pathways so you are
not crossing major roads. Make sure
access to your property is also easy for lor-
ries and horse vehicles.
YOU WILL NEED: A starter equestrian prop-
erty for one or two animals should have 3-
Lucie Greene taps the
experts for tips on
buying the perfect
slice of horsey heaven
Draker Lettings : HoLcn acc KcnsncLon London SW:W 8NS
L: ozo ,oz :oo : ozo ,oz :oz n: o,88< zoo <o: c: Ln.hasscCdakc.co.uk www.draker.co.uk
Specialising in property to rent
in Chelsea, Belgravia,
Kensington and Pimlico
5 acres of land and ideally come with addi-
tional annex lodgings for a groom.
Horses need several outbuildings and
planning permission is never a given, so
its good to look for places with existing
stables, barns or agricultural buildings,
says Jones-Davies. Look to have at least 2-
3 acres per horse so that youre not over
stressing the land, says James Grillo, asso-
ciate director of the Chesterton Humberts
country department.
WHERE TO BUY: Wiltshire, Cornwall and
Dorset are great lots of chalk soil and
for your buck and its near the M1 so
theres easy access to London.
HOW MUCH: Buyers for a weekend horse
owner property to accommodate 1-2
horses with 3 acres of land, a 5-bedroom
period farmhouse and good links to
London should expect to pay between
1.5-2m.
ADDITIONAL COSTS: You will need a
groom on-site full-time. Salaries run at
16,000 per annum typically with accom-
modation thrown in. Then theres land
upkeep, fencing, veterinary bills, black-
smith bills, and fencing. Expect to pay
100 upkeep roughly per acre, per year,
says Grillo.
INVESTMENT STAKES: Jones-Davies says
equine properties are solid invest-
ments. Especially with the
growing interest in rural land.
Theres a market for them
on two levels.
Horses in the eld: the
rural idyll.
WOOLWICH
ARSENAL PIER
(THAMES CLIPPER)
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S LONDON CITY AIRPORT
THE O2
CANARY
WHARF
WOOLWICH ARSENAL
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F or e s t R oa d, T u nb r i dg e We l l s
Two luxurious 5 bedroom detached homes in a private location with stunning
views across Tunbridge Wells. Anticipated Completion Summer 2012.
Due to commence shortly, Design & Build opportunity available. Ask for details*
Priced at 1.795 million *subject to stage of construction
01732 770991 www.millwooddesignerhomes.co.uk
NEVILL PARK
Price: 450,000
This penthouse apartment sits on the
second floor of a Victorian villa. It has
three bedrooms, a private entrance, a
sitting room, dining room, kitchen, bath-
room, cloakroom and outdoor parking.
Contact: Savills on 01892 507000 or go
to www.savills.co.uk
THE COTTAGE,
SPELDHURST
Price: 699,995
This grade II listed
cottage has four
bedrooms, a living
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clock room and a
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is surrounded by
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Contact: Hamptons
on 01892 516611 or
go to www.hamp-
tons.co.uk
FOREST ROAD
Price: 1.795m.
This 4,200 sq ft property,
spanning across three
floors, has a large kitchen-
dinning room with a sepa-
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cloakrooms, a living room,
drawing room, study,
kitchenette, five bedrooms
(four of them en suite) a
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Contact: Millwood
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Commuting: Tunbridge Wells is great for
commuting straight into the City. The train
takes just 45 minutes to get to Cannon
Street, or just under an hour to Charing
Cross. By car, the commute into the City
takes an hour. But be warned, this does
involve manoeuvring threw the M25.
Education: Great schools are one of the
main attractions of Tunbridge Wells.
Tunbridge Wells High School, the Girls and
Boys Grammar Schools, Skinners and
Judd School are all fantastic state schools.
While Benenden School, Tonbridge School
and Sevenoaks all provide top quality edu-
cation for those keen on going private.
History: More properly known as Royal
Tunbridge Wells, the area has a rich histo-
ry. The large number of stately homes, cas-
tles and gardens in the area are a
testament to that fact. It is the only spa
town in the south east of England. Famous
visitors to its spring waters throughout
history include Queen Anne, Queen
Victoria, Samuel Pepys and Daniel Defoe.
NEED TO KNOW | AREA INSIGHT
Living | Focus On
TUNBRIDGE WELLS, KENT
PRICE WATCH | TUNBRIDGE WELLS
AVERAGE DETATCHED HOUSE PRICE
TUNBRIDGE WELLS: 571,432
KENT AVERAGE: 397,054
OVERALL AVERAGE PROPERTY PRICE
TUNBRIDGE WELLS: 381,043
KENT AVERAGE: 260,546
Source: Savills Research
Q.
Ive heard that the market is beginning to turn
in the buyers favour. Is this true and if so, how
should I take advantage of it?
A.
The prime central London market is certainly
not turning in the buyers favour at the
moment. Our experience is that there are too
many buyers chasing too few properties. And in many
cases, competitive bidding is rife. But outside of this
market there are fewer foreign buyers pushing up the
Camilla Dell
MANAGING PARTNER AT
THE INDEPENDENT LONDON
BUYING AGENCY BLACK
BRICK PROPERTY SOLUTIONS
BUY
prices and properties are taking longer to
sell. But be warned, credit is still relatively
hard to obtain. Unless you have a large
deposit, of course.
Q.
I have seen a property in central London
I want. But Ive been told that it would be better
to wait until the holiday season because vendors
will be more flexible in the quieter period. Should I wait,
and if so, how should I present my offer?
A.
I wouldnt wait to make an offer if you have
found the property that you want. There are too
many buyers at the moment and the sooner you
can get the deal agreed the better. On the contrary, the
holiday period attracts more people to the area and more
competition. When making an offer, you should have
your financing and solicitor already in place in order to
act as quickly as possible.
Q A
&
Punter
RACING TRADER BILL ESDAILE, OUR RACING EXPERT, GIVES US HIS
BEST BETS ON TODAYS ROYAL ASCOT CARD
W
ITH plenty more rain expected
to fall at Ascot, its extremely
hard to confidently predict
what the official going descrip-
tion will be come race time this after-
noon. Im working on the basis that the
ground will be good to soft, but you can
monitor the situation by following me live
from Ascot on Twitter @BillEsdaile.
Now, the feature race on the penulti-
mate day of the Royal meeting sees a field
of 13 fillies line up for the Coronation
Stakes at 3.45pm. They include American
raider More Than Real, not to mention the
second, third, fourth and fifth horses
home in this years QIPCO 1000 Guineas.
Aidan OBriens Together finished sec-
ond in both the English and Irish
renewals of the Guineas and is undoubt-
edly the one they all have to beat.
However, she is pretty skinny at just 7/2
with Star Sports for a filly who hasnt
actually won any of her last eight starts.
She finished behind More Than Real at
the Breeders Cup last November and does-
nt appear to find winning that easy.
For that reason, Id far rather look for
some value and will give another chance
to French raider NOVA HAWK at around
the 10/1 mark. Our selection relishes cut
in the ground and ran a cracker to finish
fourth at Newmarket on ground that was
too quick for her. She was then by no
means disgraced finishing fourth in the
French Guineas and Im strongly of the
opinion that she is much better on a
round course.
Its hard to oppose NATHANIEL in the
King Edward VII Stakes (3.05pm) now that
the rain has arrived. He was only just seen
off by Treasure Beach in the Chester Vase
and that colt went on to finish a whisker
behind Pour Moi in the Derby.
His biggest danger could well be the
unexposed Mijhaar who bolted up in his
maiden last time. Timeline, the runner-up
that day, has since boosted the form and
Roger Varians colt could be anything.
However, hell have to be very good to beat
our selection and the 3/1 available with
William Hill makes plenty of appeal.
Todays card gets underway with the
Albany Stakes (2.30pm) and Jim Bolgers
Teolane is certain to go off favourite. She
was an impressive winner of a Listed
sprint at Naas last time, but is yet to run
on anything softer than good to firm, so I
wouldnt want to be taking a short price
on her when we dont know how soft its
going to be.
Tom Dascombe has already trained his
first Royal Ascot winner this week and I
think he can be in the winners enclosure
again with SWITCHER. She won impres-
sively on debut at Haydock on good
ground and her sire is Whipper who was a
Group One-winning horse on soft in
France. The draw in nine isnt bad and she
is a decent each-way price at 10/1 with
William Hill.
Ante-post punters got their fingers
burnt when William Haggas decided to
pull out GREEN DESTINY from
Wednesdays Royal Hunt Cup, but com-
pensation awaits in the Wolferton at
4.25pm. The progressive four-year-old
turned a competitive Newmarket handi-
cap on Guineas day into a procession and
he should take all the beating here.
Aidan OBrien won last years Queens
Vase (5.00pm) with Mikhail Glinka 12
months ago and he is set to saddle the
favourite again in Regent Street. However,
although the Galileo colt has been run-
ning in some top races this season, theres
no guarantee that he will stay this two
mile trip. Id rather take a chance on
Roger Varians ITTIRAD who has form
with cut in the ground and looked last
time as if hed relish the step up in dis-
tance.
The closing Buckingham Palace Stakes
(5.35pm) is fiercely competitive, but my
eye is drawn to two Dandy Nicholls run-
ners. Firstly, COURAGEOUS hasnt been in
the best of form, but he has slipped to a
very attractive mark and Kieren Fallon is
an eye-catching booking. He is drawn
against the favoured stands rail in 31,
right next to his stablemate DOCOFTHE-
BAY in 32 and they are both worth back-
ing each-way.
Supplied by RACING POST
GOING: GOOD
(GoingStick: Stands side 9.4, Centre 10.0, Far side 9.5, Round 8.4)
(Rail in place on Round course from 9f to home straight will be moved back
to original position for Friday and Saturday to provide fresh ground)
BBC1: 2.30, 3.05 ; BBC2: 3.45, 4.25, 5.00 ; BBCi
DRAW: Too variable to call on straight track, with pace a key factor. No definite
edge on round course, although low best in big fields.
[V] visor [B] blinkers [E] eyeshield [P] cheekpieces [T] tongue strap [H] 1st-time
3.45 CORONATION STAKES (BRITISH CHAMPIONS
SERIES) (GROUP 1) (FILLIES) (1) 3YO 1m 141,925
1 132-152 BAREFOOT LADY (37) 9-0 P Hanagan
[6] R Fahey Mrs H Steel
2 23514 CLAIOMH SOLAIS (26)(D) 9-0 K J Manning
[2] J Bolger Ire Mrs J S Bolger & D H W Dobson
3 16-3 CLINICAL (14) 9-0 S Sanders
[12] Sir M Prescott Cheveley Park Stud
4 22-2704 ELSHABAKIYA (27) 9-0 P Robinson
[4] C Brittain Saeed Manana
5 153-92 I LOVE ME (34)(BF) 9-0 D Probert
[5] A Balding N Botica
6 12-401 IMMORTAL VERSE (12)(D) 9-0 G Mosse
[11] R Collet FR R C Strauss
7 3-21 JOVIALITY (37) 9-0 W Buick
[3] J Gosden H R H Princess Haya Of Jordan
8 143-338 MAQAASID (33)(C) 9-0 R Hills
[7] J Gosden Hamdan Al Maktoum
9 1116-0 MEMORY (47)(C) 9-0 R Hughes
[9] R Hannon Highclere Thoroughbred Racing-Masquerade
10 121- MORE THAN REAL (224)(D) 9-0 O Peslier
[1] Todd Pletcher USA Bobby Flay
11 422-144 NOVA HAWK [T] (33)(D) 9-0 S Pasquier
[10] R Collet FR A Mouknass
12 91136-1 THEYSKENS THEORY (35)(D) 9-0 Martin Dwyer
[8] B Meehan Andrew Rosen
13 235-522 TOGETHER (26)(BF) 9-0 R L Moore
[13] A OBrien Ire D Smith, Mrs J Magnier, M Tabor
S.P. FCAST: 4 Together, 6 Memory, Theyskens Theory, 7 Maqaasid,
9 More Than Real, 10 Joviality, 12 Immortal Verse, Nova Hawk,
14 Barefoot Lady, Claiomh Solais, 20 Clinical, 25 bar.
ROYAL ASCOT TODAY live on BBC 2
Nova Hawk to land the
Coronation for France
Nathaniel runs in the 3.05pm
Picture: ACTION IMAGES
Pointers...
SWITCHER e/w Ascot 2.30pm
NATHANIEL Ascot 3.05pm
NOVA HAWK e/w Ascot 3.45pm
GREEN DESTINY Ascot 4.25pm
ITTIRAD e/w Ascot 5.00pm
COURAGEOUS e/w Ascot 5.35pm
DOCOFTHEBAY e/w Ascot 5.35pm
Punter
T
OMORROWS Golden Jubilee Stakes
(3.45pm) is the final Group One con-
test of Royal Ascot week and the rain
is causing havoc to a number of the
key contenders. Delegator has been the
ante-post favourite since his hugely
impressive seasonal reappearance at York,
but the softening conditions are firmly
against him. There is a chance he may not
run, but if he does Ill be looking to lay
him on Betdaq. He is a very decent animal
on his day, but I just get the impression
that he is best fresh and the York run
could have taken the edge off him.
I was very keen on Elzaam until the rain
arrived, as he ran a stormer in last years
Coventry Stakes and that form was boost-
ed when Strong Suit won Wednesdays
Jersey Stakes. He produced a lightning
turn of foot to win at Newbury last time
and you have to wonder whether hed be
able to do that again on rain-softened
ground. If it does dry out, he definitely has
a major chance, but on good to soft, he
can be opposed.
Star Witness ran a stormer in the Kings
Stand on Tuesday and this is his ideal trip.
He could even be sent off favourite as hes
as short as 4/1 with William Hill, but again
Im not sure if he will really like the softer
ground. Bated Breath is very promising
and Roger Charlton certainly thinks he is a
Group One horse. That said, the draw and
the ground could have gone against him
slightly.
My main selection for the race is Charles
OBriens BEWITCHED who has won her
last three starts, including a Group Three
over course and distance in October. Her
draw in 12 could be very good and she
loves to get her toe in. Johnny Murtagh
takes the ride and he has won two of the
last four runnings of this race, so all looks
set for a huge run. She is available at 7/1
with William Hill which is a fair price.
The other one Im interested in is
Andrew Baldings DALGHAR who was for-
merly trained in France by Alain de Royer-
Dupre. The five-year-old finished a decent
fifth to Goldikova in last years Queen
Anne Stakes and was then runner-up to
the top class Lady Of The Desert here in
September. He was switched to Baldings
yard this winter and his debut at York last
month was very promising. At 12/1 with
Star Sports, he is definitely worth an each-
way interest.
Richard Hannon has once again proved
to be the king of the two-year-olds at this
meeting and he can continue that trend
by taking the opening Chesham Stakes
(2.30pm) for the third time in the last four
years with FORT BASTION. The son of
Lawman ran an excellent race on debut
behind Mezmaar, who was slightly
unlucky with the draw in Tuesdays
Coventry Stakes. He is reportedly very well
regarded at home and he has been handed
what looks like a decent draw in stall 12.
Aidan OBriens Maybe is likely to go off
favourite, so that should mean we get a
decent price about our fellow.
OBrien may not have to wait too long to
get in the winners enclosure, though, as
his AWAIT THE DAWN looks a good thing
at evens with William Hill in the Group
Two Hardwicke Stakes (3.05pm). He
absolutely bolted up on his seasonal debut
at Chester and can take this on his way to
bigger and better things.
The Wokingham (4.25pm) is one of the
fiercest handicaps of the season over the
same trip as the Golden Jubilee and I nor-
mally like to back one on each side of the
track. Mick Easterbys HOOF IT, part-
owned by top golfer Lee Westwood, has
looked like a genuine Group-class sprinter
this season and I expect him to show that
tomorrow afternoon. Kieren Fallon takes
the ride and although his draw in stall 13
could be better, he is still worth a decent
bet at 7/1 with Star Sports.
Im also going to throw a few quid each-
way on Robert Cowells LUI REI at 25/1
with William Hill. He has been running
well this season and the stable landed the
Kings Stand with Prohibit on Tuesday.
Pointers...
FORT BASTION Ascot 2.30pm
AWAIT THE DAWN Ascot 3.05pm
BEWITCHED e/w Ascot 3.45pm
DALGHAR e/w Ascot 3.45pm
HOOF IT e/w Ascot 4.25pm
LUI REI e/w Ascot 4.25pm
Bewitched and Dalghar
to fight out the big one
RACING TRADER BILL ESDAILE TAKES US THROUGH HIS BEST
BETS FOR THE FINAL DAY OF ROYAL ASCOT
TODAYS IN-RUNNING TRADING HINTS
WHAT ARE YOU WAITING FOR?
LOG-ON TO BETDAQ AND JOIN NOW
TO PAY JUST 2.5% COMMISSION UNTIL 30 JUNE. WWW.BETDAQ.COM 0870 178 1221
T
HE constant threat of rain and the
inevitable softening of the ground
will potentially throw up a number of
interesting in-running trades this
afternoon.
Id be seriously worried about Judy The
Beautys ability to stay the six furlongs of
the Albany (2.30pm) and there may be an
opportunity to lay her at an artificially
short price if she opens up a lead around
two furlongs from home.
My selection Nathaniel could easily trade
far bigger in-running in the second if set-
tled off the pace. He is being touted as a St
Leger hopeful, will love the cut in the
ground and there wont be many finishing
stronger.
However, the best in-running opportuni-
ty of the day may well come in the Queens
Vase (5.00pm) over two miles. Plenty of
horses have travelled ominously well turn-
ing in before their stamina gives way. It
may well pay to lay the likes of favourite
Regent Street and Solar Sky if they are
cruising late on as they are by no means
guaranteed to get home.
Bewitched winning at Ascot last year Picture: ACTION IMAGES
ENGLAND seamer Chris Tremlett
returned to the Rose Bowl yesterday
and gave those fans who braved the
elements reason to cheer as Sri
Lankas batting wavered on a rain hit
first day of the third Test.
The 6ft 7in quick in tan-
dem with James Anderson,
who was making his
comeback from a side
injury, took two wick-
ets apiece reducing
the tourists to 81-4
at the close.
Having won the
toss England may
feel they should have
made further inroads on day
that was ultra conducive to swing
bowling.
But with only 38 overs completed
due to rain Tremlett, who spent near-
ly a decade on the south coast with
Hampshire, felt his side had already
stamped a measure of control on pro-
ceedings.
I played here for a long time and
its been a couple of years since Ive
been back, so it was a nice reception
and nice of the Hampshire fans to
welcome me back, said Tremlett.
It was a nice reception and nice to
see some familiar faces. The fans were
loud and had a good day despite the
rain. Me getting a couple of wickets
will make them happier.
I think at the end of the day were
happy with four wickets. Its been a
bit frustrating getting on and off; its
always a bit tough to switch yourself
on, but we did a pretty good job.
Despite that upbeat assessment
England didnt make full use of ideal
bowling condi-
tions, with
Stuart Broad
particularly
guilty of
dropping too
short having
b e e n
encouraged by a track with plenty of
pace and carry.
On the occasions that England did
pitch the ball up they were hand-
somely rewarded. Sri Lanka had
edged carefully to 29 when Lahiru
Thirimanne chased an Anderson
outswinger and succeeded only in
edging one through to Andrew
Strauss at first slip.
Without addition to the score his
opening partner Tharanga
Paranavitana lost sight of a Tremlett
in ducker and was given out LBW
before the rain forced a lengthy delay.
On the resumption Sri Lankas stel-
lar pair of Kumar Sangakkara and
Mahela Jayawardene both continued
their unproductive tours, the former
caught behind off as a result of an
ugly slash off Anderson while the lat-
ter could only fend Tremlett behind.
England were held up for the final
hour by Thilan Samaraweera and
Prasanna Jayawardene with Broads
radar again malfunctioning.
Asked if he would prefer to take the
new ball instead of the misfiring
Broad, Tremlett said: Because of my
height, I feel a newer ball is going to
help my attributes.
But when I came on to bowl, the
ball wasnt too old so I was still going
to get reasonable bounce.
Whatever role Im given in the
side, Ill take.
BY JAMES GOLDMAN
CRICKET
Fame And Glory emulated Ballydoyle star Yeats to become an Ascot Gold Cup winner Picture: ACTION IMAGES
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email sport@cityam.com
Sport
WE CANT UNDERVALUE A
PLAYER OF HIS ABILITY
WILKINS TELLS CHELSEA TO BREAK
THE BANK FOR MODRIC PAGE: 38
37
Results
THE AIDAN OBRIEN trained Fame
And Glory will head for the Arc De
Triomphe in October full of confi-
dence after landing a major gamble
to take the Ascot Gold Cup on day
three of the Royal meeting.
The son of Montjeu was trimmed
to 11/8 from 3/1 and justified
favouritism by cruising to a three-
length victory over Opinion Poll, with
French raider Brigantin a further
four-and-a-half lengths back in third.
Comparisons will now be drawn
between Fame And Glory and
Ballydoyle great Yeats, and OBrien
confirmed his latest star will follow a
similar path to the four-time Gold
Cup winner.
He said: The plan was after today
to give him a break and train him for
the Arc, so well take one step at a
time and do like we always did with
Yeats and give him a run at the back-
end.
Well give him a break now and
hopefully give him a run before the
Arc. The Gold Cup next year?
Wouldnt it be marvellous.
It briefly looked as though Opinion
Poll might reel in the Ballydoyle horse
as he made his charge under Derby
winning jockey Mickael Barzalona
but Fame And Glory stayed the dis-
tance impressively.
OBrien added: Im delighted for
everybody and for Jamie Spencer, who
gave him a great ride.
Very few mile-and-a-quarter Group
One winners you see running run in a
Gold Cup.
When horses have so much class
they can often stay class makes
them stay. Its the ultimate test of
class when you go that extreme dis-
tance. Im just very privileged to have
him.
The well-fancied Sagramor won the
Britannia Stakes for Hughie Morrison,
who landed a significant double
when Pisco Sour took the
Tercentenary Stakes.
Jim Bolgers Banimpire won the
Group Two Ribblesdale Stakes after a
thrilling battle with Field Of Miracles,
while Kevin Ryans Bapak Chinta won
the Norfolk Stakes.
Finally, Brown Panther gave trainer
Tom Dascombe his second win of the
week in the in the King George V
Stakes. It was an emotional success
for Manchester United striker Michael
Owen, who bred the winner and
owns him in the name of Owen
Promotions.
Fame And Glory for OBrien
BY JAMES GOLDMAN
HORSE RACING
Ballydoyle trainer
celebrates Gold Cup
and targets success
at Longchamp
England lifted by impressive Rose Bowl
comebacks for Anderson and Tremlett
Coronation Stakes - 3.45pm Live on BBC
Together
9
9/2
Theyskens Theory
9
13/2
Maqaasid
9
15/2
Memory
9
8/1
Nova Hawk
9
8/1
Immortal Verse
9
9/1
Joviality
9
10/1
@
@
@
MORE NEWS
ONLINE
www.cityam.com
Sport 38 CITYA.M. 17 JUNE 2011
McIlroy puts
Masters hell
behind him to
lead US Open
FORMER Chelsea No2 Ray Wilkins
has welcomed the clubs pursuit of
Tottenham playmaker Luka
Modric, but admits their initial
offer of 22m was far too low.
The Blues are mulling whether
to submit an improved bid for the
Croatia midfielder after seeing
their opening gambit rebuffed on
Wednesday and yesterday called
ridiculous by Spurs manager
Harry Redknapp.
Modric is exactly the sort of
player everybody should be going
for, but at 20m they are under-
valuing him, said Wilkins, speak-
ing at yesterdays announcement
of Budweiser as FA Cup sponsor.
Hes a player with immense
quality and I think anyone who
ends up with Modric has got a
wonderful commodity.
Hes worth considerably more
than 20m. We cant undervalue a
25-year-old who has had the most
unbelievable couple of years at
Spurs. He really is an extreme tal-
ent and I love watching him play.
Hes in my top two players from
last season, with Edwin van der
Sar. I thought Modric was
outstanding, I loved
every second of watch-
ing him play.
Redknapp insists
that Tottenham will
not let the diminu-
tive schemer, who cost
16m from Dinamo
Zagreb three years
ago, go for any
price.
The Spurs boss
p o r t r a y e d
Chelseas offer as
derisory in light
of recent trans-
fers, appearing
to hint at
Liverpools 20m
signing of
England Under-21
midfielder Jordan
Henderson from
Sunderland last
week. Luka is not for sale, said
Redknapp. If there has been a bid
of 22m that is ridiculous. There
are people being sold for 20m
who are not fit to lace Lukas
boots.
Wilkins, meanwhile, declined
to answer questions about a
possible return to Stamford
Bridge, should Guus Hiddink
be brought back as manager.
Its a nonsense. Its like say-
ing would I own Harrods
tomorrow? Im not going to
own Harrods tomorrow, he
said. Ive spoken to nobody so
therefore the question is null
and void.
Wilkins worked under
Hiddink when the
Dutchman took charge
for the end of the 2008-
09 season, but
left the club
late last year
in a move
that precipitat-
ed the clubs worst spell of
the campaign.
Wilkins: Chelsea must pay
up for wonderful Modric
BY FRANK DALLERES
FOOTBALL
SPORT | IN BRIEF
Bruins win sparks Canucks riot
ICE HOCKEY: Rampaging Vancouver
Canucks fans torched cars, stabbed people
and looted shops in a night of devastating
riots after their team lost the deciding
match of the Stanley Cup finals 4-0 to the
Boston Bruins. Police used tear gas in the
streets of the Canadian city for the first time
since 1994, when similar chaos broke out
following another Stanley Cup final defeat.
Hantuchova overpowers Venus
TENNIS: Five-time Wimbledon champion
Venus Williams preparations for another
SW19 title suffered a blow yesterday when
she lost 6-2, 5-7, 6-2 to Daniela Hantuchova in
the quarter-finals of the AEGON International
at Eastbourne. Williams, who has just
returned from a lengthy injury absence, is
seeded 23 for next weeks grand slam.
Woodgate released by Spurs
FOOTBALL: Tottenham have released injury-
plagued defender Jonathan Woodgate after
failing to agree a pay-as-you-play deal with
the 31-year-old. Former Arsenal captain
Patrick Vieira, 34, is also on the list of free
agents after leaving Manchester City.

1928

1

n

M A C

8 l
l

11

l
A

u l
M A C C
8 M l
L A I C L 5 M A 1 I C

8

n 11 L n 1 k S
L S C C C k

k

1928
NORTHERN IRELANDS Rory McIlroy
showed no ill effects from his Masters
meltdown at Augusta to take the US
Open by storm as he finished his first
round at Congressional three shots
ahead of the field.
McIlroy led after 52 holes in
Georgia back in April before blowing
his chances with a final round 80,
and all eyes were on the 22-year-old as
the second Major of the year com-
menced in Washington.
But a magical round of 65 dis-
pelled any suggestion that the events
of Augusta would leave lasting psy-
chological damage.
Putting playing partner Phil
Mickelson firmly into the shade on
his 41st birthday, McIlroy picked up
shots on the 12th, 17th and 18th to
turn in a three-under-par 32.
And when he sank an eight-foot
putt for another birdie at the 402-
yard first he was out in front on his
own. Two further birdies saw him
extend the lead to three shots to leave
him in a similar position to the one
he found himself in at the Masters.
Its fine for people to ask me
about the Masters, he said. I know
where theyre coming from with the
questions. Its up to me to show every-
one that Ive learned from Augusta.
My preparation helps me settle in
these events. I get here a week early
and get my practice rounds out of the
way before everyone else and then
the rest of the week I can conserve
energy ahead of the four tournament
rounds.
It feels close to how I was playing
at the Masters. Im hitting the ball
both ways, I feel comfortable with my
swing and comfortable on this
course.
It couldve been better, I missed a
few putts but you would take 65. I
made no mistakes, I think I only
missed one green and when you do
that youll have a good round.
Charl Schwartzel, who benefited
from McIlroys collapse to take the
green jacket, enjoyed a solid back
nine to finish on three under, while
Sergio Garcia rolled back the years to
card a splendid 69.
As for the worlds top three of
Luke Donald, Lee Westwood and
Martin Kaymer grouped together
earlier in the day when conditions
were easier they finished a com-
bined 10 over par.
Donald and Kaymer had 74s and
pre-tournament favourite Westwood
a 75, after which he said: I didnt
swing it very well and you just dont
get away with it at a US Open.
BY JAMES GOLDMAN
GOLF
ENGLAND MAKE INROADS

Anderson back to his best: P37
SPORT
RACING
ASCOT GLORY FOR OBRIEN
Ballydoyle trainer lands Gold Cup: P37
Rory McIlroy -6
Charl Schwartzel -3
Sergio Garcia -2
Kyung-tae Kim -2
Ryan Palmer -2
Louis Oosthuizen -2
LEADERBOARD
BARCELONA have cast further doubt
on the prospect of Cesc Fabregas leav-
ing Arsenal for his native Catalonia
this summer by insisting his value
has fallen over the last 12 months.
The European Champions say they
are not prepared to offer the 35m
they tabled for Fabregas last year
because the 24-year-old who made
just 29 starts last season has suf-
fered wear and tear.
Barca president Sandro Rosell said:
If last summer we offered 35m for
Cesc, and since there has been wear
and tear, now hes worth less.
Gunners manager Arsene Wenger
has stressed his desire to keep his cap-
tain, despite the midfielders wish to
rejoin the team with which he began
his career.
Barcelona know that Wenger will
only listen to a huge offer, but appear
to be trying to drive down the price
by making pub-
lic pronounce-
ments.
Barca are
430m in
debt and
last week
d e c l a r e d
their sum-
mer budget stood
at 40m, plus any-
thing they recoup
from sales.
Barca chief warns Arsenal: Fabregas is
worth less than 12 months ago
BY FRANK DALLERES
FOOTBALL
Sport
FOOTBALL ASSOCIATION chiefs insist
they are attempting to restore the FA
Cup finals status as a stand-alone
event, amid fresh concerns it
could be sidelined again for
the next two seasons.
Last months showpiece
was moved forward and
played on the same day as the
penultimate round of
Premier League fixtures,
prompting leading figures
in football to complain that
the competition had been
further devalued.
It is expected to happen
again next year, because of
the need for a four-week break
between the end of the season and
the start of the European
Championships, while last nights
announcement that Wembley will
host the 2013 Champions League
final has raised the prospect of anoth-
er repeat of this seasons controversy.
FA general secretary Alex Horne,
speaking at the announcement of a
three-year sponsorship deal thought
to be worth 24m which will see the
competition rebranded the FA Cup
with Budweiser, said: In terms of the
future of the FA Cup final, we are
making it an important feature of
our discussions with all the relevant
parties moving forward to once again
provide a clear day in the calendar.
Chris Burggraeve, chief mar-
keting officer for Budweisers
parent company AB In-Bev, told
City A.M.: Were supportive of
where the FA stand and where
they want to go. The FA Cup is
an icon, and icons deserve to be
respected.
A later kick-off time of
5:15pm has been mooted for
next season if there is a clash,
and Burggraeve added: Fans
watch any time, any day. What
we hear from fans is that they
want the FA Cup to be restored to
its unique glory. Magic can happen at
any time of the day.
European governing body Uefas
decision to hand the Champions
League final to Wembley in 2013, so
soon after this years staging, is likely
to earn the FA at least 1m in profit.
It also coincides with the governing
bodys 150th birthday celebrations, a
factor Uefa chief Michel Platini cited
in confirming Wembleys selection.
FA make cup final pledge after
agreeing 24m Budweiser deal
BY FRANK DALLERES
FOOTBALL
McIlroy shot a
bogey free first
round of 65
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