A POTENTIALLY unlimited amount of dollar

liquidity is to be injected into banking mar-

kets throughout the world, five central
banks announced yesterday.
It is hoped the measure will boost money
markets in the wake of the Eurozone debt
crisis.
The Bank of England, European Central
Bank (ECB), US Federal Reserve, Bank of
Japan and Swiss National Bank have all
announced a series of reverse repo opera-
tions to give banks more security and cer-
tainty in terms of dollar liquidity over the
year end.
We welcome the move, said Investecs
Philip Shaw. Nonetheless markets should be
under no illusions whatsoever that this is a
cure all, he warned.
Risk assets surged following the news. The
FTSEurofirst 300 index of top European
shares closed up 2.1 per cent, while the
Eurostoxx 50 spiked by nearly 3.5 per cent.
The euro soared over one per cent against
the dollar, touching $1.393 at one point.
Bank shares also pared recent losses.
Lloyds jumped by 7.2 per cent, while HSBC
and Barclays both rose just short of four per
cent. Across the channel, BNP Paribas stocks
leapt by over 13 per cent.
From a funding point of view this eases
market concerns, said BNP Paribas head of
foreign exchange strategy Steven Saywell.
This is very useful there was increasing
concern about the debt situation and nerv-
ousness about the prospect of Greek default.
The only limit on the amount we will
lend is demand for the facility and the collat-
eral to back it, an ECB spokesman said.
Clearly the central banks have to limit their
credit risk by taking collateral and applying
a haircut to it.
The loans will have three-month maturi-
ties. One-week maturities are usually on
offer in central banks more regular opera-
tions. MORE: P3
BUSINESS WITH PERSONALITY
www.cityam.com Issue 1,469 Friday 16 September 2011 FREE
FTSE 100 5,337.54 +110.52 DOW 11,433.18 +186.45 NASDAQ 2,607.07 +34.52 /$ 1.58 0.01 / 1.14 -0.01 /$ 1.39 0.02
UBS is expected to plunge bank into the red
this quarter after the bank said a single rogue
trader had cost it $2bn (1.26bn).
Ratings agency Moodys has put the bank
on review for a potential downgrade, it said
late last night, citing ongoing weaknesses in
the groups risk management and controls.
The trader at the centre of the storm,
believed to be 31-year-old Kweku Adoboli, was
arrested at the banks City offices at 3.30am
yesterday morning and taken to Bishopsgate
police station following a probe into some
unusual transactions.
It is understood that after the loss was dis-
covered, Adobolis boss John Hughes resigned.
In an email to the banks 65,000 employees,
UBS chief Oswald Grbel said: We regret to
inform you that yesterday we uncovered a
case of unauthorised trading by a trader in
the investment bank we currently estimate
the loss on the trades to be around $2bn.
Adoboli, who was a director on the banks
delta one equities desk, is believed to have
been trading with the banks own capital
when the deals under investigation occurred.
Although Grbel assured employees that
no client positions were affected, the inci-
dent is a major blow for a bank that was just
beginning to claw its way back to success
after being bailed out by the Swiss state.
The loss is equivalent to most of the annual
$2.5bn cost savings that the bank had hoped
to make by axing 3,500 workers globally.
Market participants speculated that
Adoboli could have been trading on the Swiss
franc, which moved some ten per cent in two
minutes on 6 September, when the Swiss
National Bank unveiled a shock decision to
peg its currency to the euro.
The trader was a specialist in exchange-
traded funds, instruments that can allow
investors to increase their leverage on single
trades to an almost unlimited degree.
He posted on his Facebook page, since
deleted, that he need[ed] a miracle after the
Swiss move to peg the currency last week. His
ROGUE TRADER
LOSES UBS $2BN
BY JULIET SAMUEL
BANKING

father John Adoboli, a retired UN worker

from Ghana, told reporters last night he was
heartbroken, because fraud is not our way of
life, but did not wish to draw conclusions.
UBS will now begin a wide-ranging review
of its risk management practices, involving a
probe into its entire delta one desk, which
uses both client and proprietary capital to
trade derivatives that track underlying assets.
Cass Business Schools Sonia Falconieri sug-
gested that the case could be used to fast-track
reforms proposed by John Vickers this week to
ring-fence banks investment banking arms
from their retail operations. But she added
that although it could insulate depositors
from the effects, the reforms will not pre-
vent further incidents from happening.
ALLISTER HEATH: P2; P6-8
Banks granted liquidity boost
BY TIM WALLACE AND JULIAN HARRIS
MARKETS

Kweku Adoboli, as
pictured on his
Facebook page
Certified Distribution
01/08/11 till 28/08/11 is 92,745
TINKER
TAILOR
SOLDIER
SPY
OUR
REVIEW
P33
News
2 CITYA.M. 16 SEPTEMBER 2011
Myners slams
bank reforms
LORD Myners blasted the Vickers
report into reforming the UKs banks
yesterday, arguing that it missed an
opportunity to properly interrogate
the sector.
In a House of Lords debate the for-
mer City minister said the reforms
would neither reduce the risk of
banks causing another crisis, nor
improve competition. The reforms
would also saddle banks with the
need to raise about 140bn in extra
capital at a time when markets were
unlikely to tolerate it, he warned.
It has failed to really explore the
causes of the banking crisis and in
particular the failures of manage-
ment and governance, and instead
addressed itself to how we might
lessen the damage of a repeat of this
crisis rather than reducing the risk of
a further crisis, he told City A.M.
I think it is rather narrow in the
issues it chooses to address and gives
no serious consideration to breaking
up the banks or establishing a new
investment bank.
Myners said he was concerned that
the review excessively focused on
ring-fencing and did not address the
growth in bank assets from about 50
per cent of UK GDP in the 1980s to
600 per cent today. Less than three per
cent of the assets of the big four banks
is in lending to business, he added.
BY ALISON LOCK
BANKING

Euro crisis like 1,000 rogue traders

BY far the biggest threat to the world
economy comes from the Eurozone
crisis. Rogue traders are a danger to us
all, but well-capitalised large banks can
cope quite easily with a $2bn loss (the
well-deserved reputational disaster is
another matter). That is why all recent
global banking reforms have empha-
sised the need for financial firms to
hold far more capital to protect them-
selves against trading losses or, more
likely, write-offs from their loan books.
While invariably making fascinat-
ing case-studies in hubris, rogue
traders fortunately are a sideshow to
the real issue: the situation facing the
world is now so bad that the top cen-
tral banks were forced yesterday to
announce liquidity providing opera-
tions to boost the supply of dollars to
the European banking system. Such
concerted moves dont take place if
there is nothing wrong. They confirm
that international financial institu-
tions now believe that the counter-
party risk entailed in dealing with
some European firms is too high to
bear because of their exposure to
dodgy Eurozone governments.
The real rogues are those responsi-
ble for this situation: those in politics,
business and the media who (in an act
of hubris orders of magnitude greater
than anything a trader could ever
manage) supported the creation of a
flawed single currency despite warn-
ings this could only end in tears; and
the profligate politicians who spent
years mismanaging their economies,
aided and abated by those who stood
to gain from such incompetence.
American companies are especially
worried by the Eurozone crisis. Many
large US institutions have moved their
deposits from any European bank they
perceive to be at risk to larger institu-
tions deemed solid or likely to be
bailed out. One major US financial
institution told me that it has been
testing its lines of credit to gauge the
strength of the banks with which it
has dealings; fortunately, in this case it
discovered that all seemed still to be
fine. On top of the sovereign default
risk, there is a widespread belief that
many European banks may be holding
vast amounts of property assets held at
unrealistic valuations on their books.
One top Wall Street executive is pri-
vately predicting European versions of
the Troubled Asset Relief Programme
(Tarp) as well as of the UKs asset pro-
tection scheme.
But if these sorts of things do hap-
pen, they will have a host of conse-
quences. UBSs woes are bad for the
City in general, but wait until
European governments or even the
European Financial Stability Facility
(ESFS) starts taking stakes in big
Eurozone lenders.
UBS shareholders deserve to be furi-
ous at their managements shocking
inability to put in place proper systems
to stop unauthorised trades. Counter-
intuitively, however, UBSs disgrace is
almost reassuring: it shows that the
system can easily cope with a random
hit. The bank lost just 0.4 per cent of its
capital, even when defined on the
strictest Basel rules; it could have
coped with much more. Fortunately,
even the largest trading losses tend to
pale in comparison with the less high-
profile losses regularly incurred on
property-based loans, dud long-term
investments or goodwill write-offs.
The real systemic worry is the
Eurozone. The financial system simply
cannot cope with the uncontrolled
default of European countries.
Imagine UBSs rogue trade and then
multiply it by a thousand. It just does-
nt bear thinking about.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
GOLDMAN Sachs is to close its $1.6bn
(1bn) Global Alpha computer-based
hedge fund after a poor trading per-
formance and investor demands to
pull out their money.
Goldman has written to the funds
investors to tell them the fund, which
makes money by quantitative trad-
ing, would be wound down by the
end of October.
It has performed badly this year
and is about 13 per cent down for the
year, far more than the one per cent
average fall across quant funds.
Global Alpha managed about
$12bn at its peak in 2007 but has
been in decline after suffering a hor-
rendous performance in August 2007.
The fund lost 22.5 per cent in a mat-
ter of weeks as market meltdown left
quant funds reeling.
But it has failed to bounce back
this year in contrast to its peers across
the sector, which are proving better
at handling fresh market turbulence.
BY ALISON LOCK
HEDGE FUNDS

Goldman cuts hedge fund

Goldman Sachs chief executive Lloyd Blankfein is closing the Global Alpha hedge fund
NEWS | IN BRIEF
US Democrats back AT&T deal
A group of influential Democrat law-
makers have written to US President
Barack Obama calling on him to approve
telecoms giant AT&Ts $39bn (24.7bn)
proposed acquisition of T-Mobile USA
from Deutsche Telekom. The fifteen rep-
resentatives have said the deal would
help to cut unemployment and encour-
age investment at a time when the US
badly needs it. The Justice Department
has moved to block the deal, arguing
that it would reduce competition and
lead to higher prices for consumers.
City welcomes UKs ECB lawsuit
The City of London Corporation yester-
day welcomed government action to sue
the European Central Bank over plans to
force clearing houses to move to Europe.
Policy chairman Stuart Fraser told City
A.M. it was vital that European legisla-
tion was underpinned by sound eco-
nomic reasoning rather than using the
recent crises as an excuse to build barri-
ers to cross-border trade. Fraser said
the UK must guard against attempts to
split European countries from the
Eurozone but said he was hopeful a
pragmatic solution could be found.
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
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Lord Myners believes
more bank reform
options could have
been considered in the
Vickers Report
4th Floor, 33 Queen Street, London, EC4R 1BR
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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
Acting Art Director Jo Simpson
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
BTG PACTUAL LOOKS AT IPO AS IT
EYES EXPANSION
BTG Pactual, Brazils largest inde-
pendent investment bank, is looking
to hold an initial public offering as
early as next year as one option to
fund an ambitious expansion in Latin
America. The move comes as the bank
is also strengthening its foothold in
Asia with a planned strategic alliance
with a financial institution in China
that will involve some mutual pur-
chases of equity.
SUBSCRIBER CANCELLATIONS STRIKE
NETFLIX
Netflix shares tumbled close to 15 per
cent on Thursday after the fast-grow-
ing DVD and online video streaming
service said it expected 1m people to
cancel their subscriptions in the US
because of a recent price hike. It
downgraded its subscriber estimates
in a letter to shareholders.
BAA TO CHALLENGE ORDER TO SELL
AIRPORTS
BAA is to mount a fresh legal chal-
lenge against the competition regula-
tors rulings that it must reduce its
market dominance by selling some of
its airports. Britains leading airports
operator said on Thursday it would
seek a judicial review of the
Competition Commissions rulings
that it should sell some of its busi-
nesses Stansted airport and either
Edinburgh or Glasgow airports.
VICKERS SHAKE-UP CUES SANTANDER
LISTING DELAY
The planned listing of Santanders UK
operations on the London Stock
Exchange is likely to be delayed follow-
ing the proposed Vickers reforms to
overhaul British banking until at least
2013. Initially the Spanish bank had
hoped to float 20 per cent of
Santander UK, the subsidiary formed
by the acquisitions of three former
building societies, for about 3bn in
the second half of this year.
CABLE STANDS UP FOR STRATEGY TO
CUT BRITAINS DEFICIT
Vince Cable has mounted a staunch
defence of the governments deficit
reduction strategy amid growing
pressure on the coalition to come up
with an economic Plan B. In a pam-
phlet written for the CentreForum
think-tank, the Business Secretary
acknowledges economists concerns
about Britains sluggish recovery.
MINT HOTELS TO JOIN HILTON STABLE
IN 600M DEAL
Blackstone is poised to complete one
of Europes biggest hotel deals since
the credit crunch after agreeing
terms on the acquisition of the Mint
Hotel group formerly City Inn for
just over 600 million. The privately
owned chains eight hotels will be
run as part of the American invest-
ment firms Hilton Worldwide busi-
ness under a management contract.
EDF ENERGY RAISES ELECTRICITY AND
GAS PRICES
Average electricity tariffs will also rise
by 4.5 per cent in changes that will
come into effect on 10 November and
reflect rising wholesale energy, net-
work and other costs. EDFs decision
means that all of the big six power
suppliers have now raised their tariffs
for the coming winter.
CHINA RISKS A HARD LANDING AS
GLOBAL WOES SPREAD
Chinas carefully-managed soft land-
ing is turning harder by the day,
threatening to deflate the torrid cred-
it bubble of the past three years.
There is a large potential risk, said
Zhu Min, the deputy managing direc-
tor of the IMF and a former Chinese
official. Mr Zhu said China had dou-
bled the loan ratio from below 100 per
cent of GDP before the Lehman crisis
to roughly 200 per cent today.
YAHOO HEARS FROM POTENTIAL
BIDDERS
Yahoo has been contacted by poten-
tial bidders for some or all of the
Internet company, even as it focuses
on stabilizing its executive ranks and
bolstering its online-ad business, peo-
ple familiar with the matter said.
Executives at private-equity firm
Silver Lake Partners are among the
potential bidders that have called
Yahoo directors.
BRIDGESTONE TO PLEAD GUILTY IN
BID-RIGGING CASE
Bridgestone will plead guilty and pay
a $28m criminal fine for participat-
ing in bid-rigging and bribery con-
spiracies related to the sale of marine
hose, the Justice Department said yes-
terday. It said Bridgestone was part of
an antitrust cartel that affected
prices for hundreds of millions of dol-
lars of marine hose.
WHAT THE OTHER PAPERS SAY THIS MORNING
News
3 CITYA.M. 16 SEPTEMBER 2011
Q.
WHATS THE PROBLEM?
A.
Banks are worried about the cri-
sis in the Eurozone, and do not
know which other banks they can
trust. That means they are cutting
the amount they lend to each other.
Q.
WHATS BEING DONE ABOUT IT?
A.
Central banks in Europe, the UK,
US, Switzerland and Japan will
make loans to help banks that need
more US dollars. They are having less
difficulty borrowing euros, because
of European Central Bank support.
Q.
HOW DOES THAT WORK?
A.
The central banks already offer
one-week dollar loans to banks.
These new loans only
have to be paid back after
three months. That gives
the banks a bit more security and
certainty about where their liquidity
is coming from.
Q.
HOW POPULAR WILL IT BE?
A.
Judging by the market reaction --
very. The euro rose against the
dollar on the news. In the height of
the financial crisis the central banks
offered similar three-month loans.
In November and December 2008
over $11bn was borrowed from the
Bank of England at each auction.
This time round, banks will be able
to borrow as much as they want as
long as they can provide collateral
against the loans.
The Bank of England - governor Mervyn
King above - last offered these loans in the
crisis height. Picture: REUTERS
Jean-Claude Trichet, above, from the
European Central Bank, is leading efforts
to save the euro. Picture: REUTERS
The Bank of Japans governor Masaaki
Shirakawa, above, is urging more action
on the euro. Pic: REUTERS
Fed head Ben Bernanke, right, may
launch more quantitative easing in a bid
to boost the US economy. Pic: REUTERS
The Swiss National Bank, led by Philipp
Hildebrand, above, took action on the
strong franc last week. Pic: REUTERS
* Barclays Bank Base Rate (BBBR) is currently 0.50% variable and typically follows the Bank of England Base Rate but is not guaranteed to do so. Minimum loan 5,000 and maximum 2m. Barclays
tracker rate mortgages can uctuate in line with BBBR.

BT residential customers, calls will cost no more than 4.5p per minute, plus 12.5p call set-up fee (current at July 2011). The price on non-BT phone lines may be different. To maintain a high quality
service and for security reasons we may monitor and/or record calls. Lines are open 8am to 9pm, 7 days a week.
Barclays Bank PLC is authorised and regulated by the Financial Services Authority (FSA). Registered No 1026167. Registered Ofce: 1 Churchill Place, London E14 5HP.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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Visit us in branch
Call 0845 070 2449

EURO-BONDS were attacked by several

leading Eurozone figures yesterday, in
a fierce rebuttal of the plan currently
under consideration by the European
Commission.
Senior European Central Bank offi-
cial Juergen Stark threw his weight
behind compatriot Angela Merkel,
stating: Euro-bonds are no solution to
the debt crisis. There are no simple,
quick solutions to the debt crisis on
the European level. German
Chancellor Merkel had earlier blasted
the bonds as absolutely wrong.
In order to bring about common
interest rates, you need similar com-
petitiveness levels, similar budget situ-
ations. You dont get them by
collectivising debts, Merkel said.
Eurobonds would effectively result
in the Eurozones core countries
underwriting government debt from
states such as Greece. The European
Commission is weighing up its options
on how the Eurozone might issue
joint bonds, its President Jose Manuel
Barroso said on Wednesday.
Merkels nervousness over the
Eurozone crisis was amplified yester-
day, when her partys finance
spokesman, Michael Meister, urged
coalition partners to not stoke any
other debates about Greece potential-
ly leaving the Eurozone. Merkel insists
that the Eurozone will stick together
with all its current members.
Meanwhile, Spain and France sold
nearly all the bonds they had offered
at auctions yesterday. Spains Treasury
sold one billion euros worth of a 2019
bond and 1.4bn and 1.5bn euros of two
bonds maturing in April and October
2020 respectively.
The average yield on the 2019 bond
was 4.969 per cent. On the April 2020
bond it was 5.006 per cent, and for the
October 2020 bond it was 5.156 per
cent. Spain will introduce a wealth tax
in a bid to cut its deficit, a minister
said yesterday.
EUROZONE JOBS RISE: P18
Stark echoes
Merkel attack
on euro-bonds
BY JULIAN HARRIS
EUROZONE

CENTRAL BANK DOLLAR LENDING - WHOS DOING WHAT?

Q A
&
EUROPE-wide equity trading platform
Chi-X Europe fielded more trades than
the London Stock Exchange in August,
putting it ahead of all other exchanges
in the region, data from the
Federation of European
Securities Exchanges yesterday
showed.
Chi-X, which allows multi-
lateral equity trades in Europe-
listed companies, saw 43.1m
trades completed in August, a 58
per cent leap from the 27.3m
trades seen in July and just
ahead of the London Stock
Exchange Group, which
saw 41.6m trades.
But the LSE Group,
which includes Italian
stock market Borsa
Italiana and its multilat-
eral platform Turquoise,
said its trading period was shortened
by the UKs August bank holiday and
it had a smaller geographical reach.
In turnover terms, the LSEG, led by
Xavier Rolet (pictured), remains the
bigger exchange, with a total 270.8m
(235m) of turnover in August, com-
pared to 213.8m on Chi-X.
But Chi-X has grown closer to
pipping its longer-established
competitor and is currently
finalising a takeover by US-based
platform BATS Global, which
will expand its reach further.
Its chief executive Alasdair
Haynes said clients
wanted to cut costs.
Were cheaper
than the incum-
bent exchanges. If
as a venue you are
reliable, price will
be one of the
deciding factors,
he said.
Chi-X beating
LSE on trades
BY ALISON LOCK
CAPITAL MARKETS

BLACKBERRY maker Research in

Motion stunned analysts yesterday
after posting a sales slump far worse
than expectations and warning of a
poor outlook for the rest of the year.
RIMs shares fell more than 18 per
cent in after-hours trading after it
said net profit fell 47 per cent in the
second quarter to $419m (266m), or
$0.80 per share, on revenue of $4.2bn.
RIM said it shipped 10.6m smart-
phones and 200,000 PlayBook tablet
computers in the past quarter,
sharply below analysts average esti-
mate of almost 12m phones and
600,000 tablets. RIMs had forecast 11
to 12.5m BlackBerry shipments.
The Canadian company also paint-
ed a less-than-rosy picture for its cur-
rent quarter and pointed towards the
lower end of an already reduced full-
year outlook.
Research in Motion stuns with
47pc profit slide as sales slump
TECHNOLOGY

THE INDEPENDENT directors of

Mitchells & Butlers have issued a put
up or shut up notice to Piedmont,
forcing Joe Lewis to make a public
offer for the group by 17 October.
If Piedmont fails to come back with
a firm offer by the deadline of 5pm
on 17 October, following its possible
offer of 230p per share on Monday,
the group must confirm publicly it is
no longer contemplating such a bid.
M&Bs independent directors have
made the demands in accordance
with rule 2.6 of the new edition of
the Takeover Code, which comes
into force from Monday.
But sources close to Piedmont, the
investment vehicle owned by forex bil-
lionaire Joe Lewis, said Lewis expected
the notice and he continues to con-
sider his options.
Piedmont, which holds a 22.8 per
cent holding in M&B, clarified late
on Wednesday that speculation its
possible offer of 230p per share repre-
sents its final bid for the Harvester
and All Bar One owner is incorrect.
Elpida, the investment vehicle
owned by John Magnier and JP
McManus that owns a 20.1 per cent
stake in M&B, has not yet made a pub-
lic statement on Piedmonts offer.
But on Wednesday, Lewis told associ-
ates he hopes to meet the Irish
investors, who have been guests on his
yacht Aviva, within 48 hours.
Mitchells & Butlers sets Lewis
a deadline for his next move
BY HARRIET DENNYS
LEISURE

News
4 CITYA.M. 16 SEPTEMBER 2011
NEW CHAIRMAN FOR MORGAN STANLEY
MORGAN Stanleys chief executive James Gorman (pictured) will take over as chairman
from John Mack at the end of the year. Macks aggressive cost-cutting tactics earned him
the nickname Mack The Knife. Gorman, 52, will stay as chief executive as agreed two
years ago when Mack became chairman. The change comes as the bank pares back its
trading activities to focus on more stable wealth management income. Pic: REUTERS
KWEKU Adoboli, the 31-year-old trader
at the centre of a $2bn storm yester-
day, is a typical trader type, like a lot
of these guys, coming across as self-
confident and calm under pressure,
according to one professional contact
who spoke to him recently.
He is also hard-working. He was
pretty committed to his job at UBS in
there early and out late, said the con-
tact. That is a picture given ample sup-
port by the time and place of his
arrest, at 3.30am on Thursday from
UBSs City office, although he was like-
ly aware of the coming storm by that
point.
He has worked at the bank since
2003, joining straight out of
Nottingham University where he stud-
ied computer science. He entered first
as a trainee and then became a trade
support analyst in the back office
before moving on to the Delta One
equity trading desk, where he rose to
become a director focused on
exchange-traded funds (ETFs).
But he has interests outside the City,
including photography and cycling,
and is a fan of the Nigerian Afrobeat
singer Fela Kuti as well as electro
music producer MC Xander and the
UK singer and pianist Gwyneth
Herbet.
He lived for some time in
Shoreditch and listed the local
Boundary Restaurant & Bar as a
favourite haunt. But he was also is a
member of a Facebook group named
ILoveGhana.com, a community group
based in Tema.
Among the other groups listed on
his profile is one devoted to the unusu-
al hat worn by Princess Beatrice to the
royal wedding. By Juliet Samuel
Profile
|
Trader
with a taste for
Fela and royalty
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Focus on UBS rogue trader
6 CITYA.M. 16 SEPTEMBER 2011
Scandal dents Swiss banks reputation
THE three keys that make up the UBS
logo symbolise confidence, security
and discretion. After yesterdays
news, that logo needs to be
redesigned.
Although the $2bn hit is likely to
wipe out third quarter profits (esti-
mated at $1.5bn by analysts), the loss
itself will be manageable enough.
UBS lost $1.32bn in the second
quarter of 2009 and lived to tell the
tale, while its subprime losses as
well as those at other banks were
even larger (see table on opposite page).
The hit is equivalent to 3.4 per cent
of the banks tangible book value at
the end of the second quarter, or a hit
of around 44 basis points to its capi-
tal as measured under Basel III, say
analysts at RBC. Even on the most
conservative measure, UBS is forecast
to have a core tier one capital ratio of
10 per cent under Basel III at the end
of 2012, falling to 9.8 per cent follow-
ing this hit, still more than Credit
Suisse on 8.8 per cent.
It is the scale of the reputational
damage that could end up costing
UBS much, much more as last
nights Moodys downgrade review
demonstrates.
The rogue trader scandal couldnt
have come at a worse time for the
Swiss bank, which was just begin-
ning to recover from a flight of
wealth management clients follow-
ing the US tax evasion probe and
financial crisis (see graph right).
Clients had only started to return
in recent months, and their business
was incredibly hard won. Oswald
Grbel had a huge task in convincing
wealthy people that the bank was to
be trusted again.
It is hard not to feel sorry for
Grbel, who has led the bank
admirably since 2009. In one fell
swoop, much the good work done by
the UBS management team and its
bankers has been undone.
BOTTOMLINE
Analysis by David Crow
No, security can always be gotten around
if the controls are not strict enough. I'm
quite surprised that a big company like
UBS wasnt able to prevent it.
PHILIP ATKIN | CNS
No. Rogue traders are entrepreneurial by nature,
they are selfish thinkers, and they look to get
around rules and regulations. UBS should be
able to prevent it, though.
PAUL SMITH | INCEPTA
I would expect a large company to have an almost
foolproof system these days. I think today's news
from UBS is unbelievable $2bn is a stagger-
ing sum of money.
PETER GODFREY | JRP UNDERWRITING
ANALYSIS l USB asset trends
2007 2008 2009 2010 2011
100
50
0
-50
-100
3500
3125
2750
2375
2000
Net new assets - CHF billion Invested assets - CHF billion
Q1
Q2
Q3
Q4 Q1 Q2
Q3
Q4 Q1
Q2 Q3
Q4
Q1
Q2 Q3
Q4
Q1
Q2
CITY VIEWS: ARE YOU SURPRISED THAT A ROGUE TRADER
CAN OPERATE AFTER THE FINANCIAL CRISIS? Interviews by William Turvill
* These views are those of the individuals above and not necessarily those of their company.
Focus on UBS rogue trader
CITYA.M. 16 SEPTEMBER 2011 7
JEROME KERVIEL
Former Socit Gnrale
trader Jerome Kerviel sen-
tenced to three years in
prison by a Paris court for
his role in a trading scandal
and ordered to reimburse
the bank 4.9bn. The 33-
year-old was found guilty of
breach of trust, computer
abuse and forgery.
AIG
Amount Lost: $61.7bn
AIG posted the biggest quarterly
loss in history in January 2009
on asset writedowns, having
already taken $150bn in US aid.
UBS
Amount Lost: $12bn
UBS chairman Marcel Ospel
stepped down after it posted the
subprime-related loss in the first
quarter of 2008.
CITIGROUP
Amount Lost: $10bn
Citi stunned markets with one of
the first big losses of the crisis,
at the end of 2007, after writing
off billions in subprime exposure.
ALEXIS STENFORS
Former senior trader at
Merrill Lynch in London
Alexis Stenfors was
banned for at least five
years for deliberately
overvaluing his trading
positions to hide his loss-
es, forcing the US bank to
make a $456m write-
down.
YASUO HAMANAKA
Japanese trading house
Sumitomo suffered a $2.6bn
loss over 10 years from
rogue copper trades, prima-
rily by chief trader Yasuo
Hamanaka. Hamanaka,
whose team was believed to
control five per cent of the
world's copper trading, was
jailed for eight years.
NICK LEESON
Barings, one of Britain's
oldest investment banks,
collapsed after Nick
Leeson, a futures trader in
Singapore, lost $1.4bn in
derivatives trading.
Leeson was jailed in
Singapore. Barings was
subsequently sold to
Dutch bank ING for 1.
Institution Name Year Amount lost
Socit Gnrale Jerome Kerviel 2010 $6.8bn
Amaranth Advisors Brian Hunter 2006 $6.4bn
Sumitomo Corp Yasuo Hamanaka 2006 $2.6bn
Barings Nick Leeson 1995 $1.4bn
Daiwa Bank Toshihide Iguchi 1995 $1.1bn
Allfirst John Rusnak 2002 $691m
Merrill Lynch Alexis Stenfors 2009 $456m
Kidder Peabody Joseph Jett 1998 $350m
NAB David Bullen and Vince Ficarra 2006 $252m
MF Global Evan Dooley 2010 $141m
10 BIGGEST ROGUE TRADERS
MERRILL LYNCH
Amount Lost $9.8bn
Merrill lost almost $10bn at the
end of 2008 after writing off
more than $16bn of subprime
mortgages in the fourth quarter.
BANK OF AMERICA ML
Amount Lost $8.8bn
Merrills new owner fell to its
biggest quarterly loss this July
as it settled legal claims related
to subprime mortgage securities.
CITIGROUP
Amount Lost $7.6bn
Citi features for a second time
with a loss in the final quarter of
2009 as it wrote off more failed
loans and repaid its US bailout.
ANALYSIS l Biggest bank losses outstrip actions of rogue traders
Focus on UBS rogue trader
8 CITYA.M. 16 SEPTEMBER 2011
BANKS spend millions of pounds and
hundred of hours every year monitor-
ing risk. UBS is no different, saying in
its latest annual report that it has
made a significant investment in
risk management systems.
So the news that $2bn of rogue
trades had gone unnoticed will come
as something of a shock both to out-
siders, and to UBSs four-strong risk
committee. According to the report,
key to the Swiss banks risk strategy in
the last year has been an investment in
new IT systems to monitor risk,
focused particularly in the invest-
ment bank.
Richard Bentley of Progress
Software yesterday said pre-trade man-
agement is a key area where banks
should ramp up their level of supervi-
sion, particularly with so much focus
from regulators.
Pre-trade risk management is para-
mount, with trading limits specified
and checked in real-time, said Bentley.
UBS has also recently hardened its
line on risk takers. The new rules
mean that those identified as risk tak-
ers get extra supervision, 60 per cent of
bonuses deferred over three years, and
any vesting of equity subject to their
financial performance. But while pin-
ning down how one trader managed
to sidestep controls will be the imme-
diate focus in the Adoboli case, in the
longer-term scrutiny is likely to shift to
his stomping ground the murky
world of the exchange-traded fund.
A favourite of regulators, the value
of the European ETF market is now
estimated at around $325bn, and it
remains notoriously opaque.
Richard Reid of the International
Centre for Financial Regulation thinks
the UBS case will heighten scrutiny of
ETFs, but that the risks should not be
blown out of proportion.
It is probably early enough in the
growth of these funds to be able to say
that they do not represent a truly sys-
temic risk, said Reid. Although this
will be seen as a real warning signal.
Spotlight on
UBS risk rules
BY ELIZABETH FOURNIER
COMPLIANCE

SHARES in insurance broker

Jardine Lloyd Thompson (JLT)
jumped more than seven per cent
yesterday after one of its biggest
shareholders paid 166m to
increase its stake.
Conglomerate Jardine Matheson
will buy an additional ten per cent
of JLT, upping its stake to 40.4 per
cent of the fast-growing broker.
The two companies said the deal
would maintain JLTs independ-
ence while adding to Mathesons
return on its investment.
They wanted to support the
company and we are delighted to
have them, JLT chief executive
Dominic Burke told City A.M.
He said the two firms had been
in talks for about a month.
We are delighted to have found
the appropriate level of sharehold-
ing for them to take to ensure they
are very supportive and also leave
the company to continue creating
the momentum it has been.
The agreed cash offer, 765p per
share, represents a 23.6 per cent
premium to the companys closing
price on Wednesday night.
Jardine Matheson has been a
supportive investor in JLT for many
years, said JLT chairman Geoffrey
Howe. We believe that the partial
offer reinforces Jardine Mathesons
long term commitment whilst pre-
serving JLTs independence.
Panmure Gordon analyst Barrie
Cornes said it was a vote of confi-
dence in the business but it will
remove any bid speculation in the
share price.
Growth in Asia and Australia
helped JLT post an eight per cent
rise in its 2011 half-year profits to
76.4m in July.
Jardine Matheson pays
166m to up JLT stake
BY ELIZABETH FOURNIER
AND ALISON LOCK
INSURANCE

Leading the advisory team for Jardine

Matheson is Crispin Wright, a manag-
ing director of Rothschild, who also
advises Lloyd's of London insurance
underwriters Hardy, airport operator
BAA and ferry company P&O. In the
past, acting as financial adviser,
Wright has fended off takeover bids
for both currency printer De La Rue, as
Obethur made a 900m bid for the
company, and Wolverhampton &
Dudley Breweries as they were
approached by Pubmaster, a challeng-
ing brewery, in 2000. UBS is also
advising Jardine Matheson, led by Tim
Waddell. By William Turvill
MEET THE ADVISER
CRISPIN WRIGHT
ROTHSCHILD
ANALYSIS l Jardine Lloyd Thompson Group PLC
p
9Sept 12Sept 13Sept 14Sept 15Sept
660
650
640
630
620
663.00
15 Sept
610
JLT chief executive Dominic Burke said the deal was a vote of support
Despite being seen by insiders as
increasingly important for banks, delta
one trading desks only seem to get
reported when a trader goes rogue.
So what is delta one? The name
refers to an equity flow that tracks an
underlying asset. If that security moves
by one per cent when the underlying
asset moves by one per cent, or as
closely to that as possible, then it has a
delta of one. Algorithmic systems can
be used in order to take profits from
arbitrage across fluctuations between
the asset and the derivative.
Banks offer delta one services to
clients largely hedge funds with the
bank providing hedging services on
these trades. As such, the delta one
desk sits between client flows and the
banks own proprietary trading. As a
result some refer to delta one as flow-
prop. And it is from this position that
banks can make big profits.
Every institution has its desk struc-
tured differently depending on their
focus. But broadly speaking, the banks
can profit from efficiency in their role
in hedging the delta one trade expo-
sure.
It is estimated that for UBS to have
made a loss of this size, it would have
had to take a position of at least $10bn.
By Craig Drake
WHAT IS DELTA ONE TRADING?

We understand that you

have already had to contend
with unfavourable, volatile
markets for some time now...
While the news is
distressing, it will
not change the
fundamental
strength of
our firm.
- Oswald
Grbel
to staff

The Capitalist
10 CITYA.M. 16 SEPTEMBER 2011
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
chairman Sir Alan Thomas, Mullins
(below) also cornered chancellor
George Osborne, where he outlined
his best proposal for halving the
nations 2.51m unemployed.
I believe that youth unemploy-
ment could be cut by 50 per cent if
the government gave employers
incentives to take on young people,
he told Osborne. Like replacing job
benefits with job allowances
for the employer that they
can put towards paying the
minimum wage.
It isnt as simple as you
are making out, replied
the chancellor, blaming
the yards and yards of
red tape although he
is, apparently, giving
the proposal some seri-
ous thought
LIQUID LUNCH
COULD The Brasserie Bar Co become
the next takeover target by a major
leisure group?
Core Capital, the private equity
firm that built up Loch Fyne before
selling it on to Greene King, must
have some reason for investing 20m
in the group, which last month
announced its plans to expand into
pubs venture The White Brasserie
Company alongside the Brasserie
Blanc restaurants, quadrupling its
number of UK outlets.
First things first, however: choos-
ing a new head office, which is conve-
niently situated opposite The Kings
Head in Teddington, one of the first
secured sites for the pubs venture.
The work canteen now has a whole
new meaning, said a brewing mole.
MADE IN CHELSEA LINK
IRKS TOPSHOP TYCOON
A NIGHT in is inked in the diary for
Sir Philip Green next Monday, when
the first episode of the new season of
Made In Chelsea airs, starring his 20-
year-old daughter Chloe. I will be
watching it on Monday night, of
course, he told The Capitalist.
The conversation took a turn for
the worse, however, when the
Topshop boss (pictured far right) was
pressed on the rumours he and his
wife Tina are none too happy about
their daughters role in the show
that documents the lives of a group
of privileged West Londoners, includ-
ing the McVities heir Jamie Laing.
As one friend of the family told The
Capitalist, Lady Green feels Chloe is
really letting them down in the
embarrassing project. Im not get-
ting involved, said Sir Philip gruffly,
before cutting the conversation
dead. Nice to talk to you. Goodbye.
FAMILY FORTUNES
CHARLIE Mullins, Britains richest
plumber, always thought the only
way he would see inside Number 10
would be on a call-out to unblock the
Prime Ministers drains.
Not so the Pimlico Plumbers
managing director was this week
invited as a guest of David Cameron
and George Osborne at a reception
for business leaders where, to his sur-
prise, he found himself seeing eye to
eye with the policy makers. For once
I would say that I was drinking out of
the same teapot [as the PM], he told
The Capitalist.
Mullins, famously vocal on gov-
ernment policy on unemployment,
was encouraged by Camerons mes-
sage that private sector businesses
must continue to recruit to take up
the slack from the public sector.
Before the reception, I had thought
I had 20 job vacancies, Mullins said.
But if this is the way to tackle the
deficit and turn the economy
around, I could take on 50 people.
Elbowing aside ex-M&S chairman
Sir Stuart Rose and Hyder Consulting
Lady Green
feels her
daughter is
letting the
family down
by appearing
on the reality
show Made
in Chelsea
London 2012
IMAGE OF THE WEEK
Boris Johnson and Frank Lowry, co-founder
of the Westfield Group, open the gateway
to the Olympic Park: Westfield Stratford.
In the run-up to the 2012 Games, City A.M.
is publishing its Olympic Image of the Week.
Email your photos to pictures@cityam.com
with IOW2012 in the subject line. Full
details: www.cityam.com/london-2012.
TEAM GB| OPENING OF WESTFIELD STRATFORD CITY
Chloe Green (above,
standing centre)
with Made In
Chelsea cast
members
News
12 CITYA.M. 16 SEPTEMBER 2011
KINGFISHER said yesterday it will cre-
ate 1,200 new jobs across the UK as its
B&Q and Screwfix stores buck the
retail gloom.
The DIY retailer was boosted by a
strong performance in France, where
retail profits rose 24 per cent to 201m
in the six months to the end of July.
In the UK and Ireland profits rose
six per cent to 182m.
The company said it would also cre-
ate 230 jobs to run the 29 former Focus
stores it has bought, as it targets
growth amid the tough market.
Overall, adjusted pre-tax profit rose
24 per cent to 439m while sales rose
3.8 per cent to 5.6bn.
Chief executive Ian Cheshire said
that the size of Kingfisher had helped
it to weather the bleak consumer cli-
mate better than smaller rivals in the
UK, where government austerity meas-
ures have taken their toll on house-
hold budgets.
When there is less oxygen around
they suffer more, he said.
The company has set a target of hav-
ing half its product range common to
all countries in a bid to save costs.
Meanwhile it will spend 30m a
year on a team in France that will
come up with top secret products to
launch on the market.
But Cheshire urged caution, adding:
The economic situation is uncertain.
The market took well to the results
figures, and Kingfisher closed up 4.8
per cent yesterday.
Kingfisher to
boost its UK
headcount
BY JOHN DUNNE
RETAIL

ANALYST VIEWS: HOW DO KINGFISHERS

RESULTS MEASURE UP? Interviews by John Dunne

PHILIP DORGAN | PANMURE GORDON

These excellent results and forecast upgrades further differentiate its
investment case from the rest of the land-locked, online-vulnerable, cash flow-chal-
lenged retail sector. Kingfisher shares have significant upside, driven by cash gen-
eration, earnings growth and expansion. We recommend a Buy.

FREDDIE GEORGE | SEYMOUR PIERCE

The stock is undervalued considering these results and the compa-
nys international spread of activities. We raised our recommendation on the
retailer to buy from hold and have increased our full-year earnings estimate.

NICK BUBB | ARDEN PARTNERS

Smashed expectations and in line for a full year profits upgrade. Things
are coming together with common sourcing. Its a fantastic, focused recovery. It
has a strong balance sheet and is well placed. The performance in France has been
strong despite the tough backdrop.

Chief executive Ian

Cheshire hopes to
create more than
1,400 jobs as part
of its expansion
plans and overhaul
of the Focus DIY
shops it bought
NEWS | IN BRIEF
Dunelm profits and revenues rise
Homewares retailer Dunelm said it was
satisfied with its performance for the
year in a tough operating environment
for non-food retailers and raised its final
dividend by 60 per cent. The group,
which runs more than 100 mostly out-of-
town stores, reported a nine per cent
increase in total revenue, but like-for-like
sales fell by less than a per cent. For the
year to 2 July, Dunelm posted a nine per
cent rise in pre-tax profit to 83.6m as
sales at shops open over a year grew
eight per cent. Revenue for the year was
538.5m.
Johnston board buy up shares
All the non-executive directors at
Johnston Press bought tens of thousands
of shares each yesterday at above-mar-
ket prices. Chairman Ian Russell, who
bought more than 248,000 shares at 5p
each, and senior independent director
Mark Pain who bought 81,000, were
among the six directors splashing out on
stakes in the troubled media group.
Shares in Johnston Press closed down
1.88 per cent at 4.71p yesterday.
BNP Paribas
In our articled dated 15 September, we
suggested that BNP Paribas planned to
exit investment banking in the UK,
Hungary and Switzerland. This was
incorrect. The bank is only considering
pulling out of its much smaller equipment
leasing business in these countries. We
also suggested it planned to reduce its
investment bank funding needs by 60bn
before the end of the year. The correct
figure is $60bn or 44bn. We would like
to apologise for both errors.
ANALYSIS l Kingfisher
p
9Sept 12Sept 13Sept 14Sept 15Sept
255
245
235
251.10
15 Sept
KESA yesterday reaffirmed that it was
pushing ahead with its Comet
revamp plan yesterday as sales again
tumbled.
The electrical goods retailer said it
was keeping its options open, includ-
ing a possible sale of the struggling
chain.
The Comet turnaround plan is
underway while continuing to exam-
ine other strategic alternatives, the
firm said. In June Kesa said it was
looking at a range of options for
Comet, including a disposal or forma-
tion of a joint venture, while pressing
ahead with a turnaround plan that
included selling weaker shops and
focussing on profitable ranges like
small appliances.
Kesa yesterday also posted a further
deterioration in trading at Comet for
the three months to 31 July.
Sales at Comet stores open over a
year slumped 22.1 per cent, although
gross margin increased 80 basis
points.
The sales decline was in line with
analyst forecasts of a fall of 18-25 per
cent and partly reflected a tough
World Cup football comparative with
the same period last year. Like-for-like
sales at the groups Darty business in
France fell 3.7 per cent, better than
analyst forecasts.
Kesa hit as
Comet sales
fall yet again
BY JOHN DUNNE
RETAIL

Britains biggest cash and carry

wholesaler Booker reported a sharp
rise in second quarter sales, boosted
by strong demand for fresh fruit and
vegetables.
The firm, which has over 170
branches supplying retailers and
catering firms, said yesterday its total
sales rose by 7.6 per cent in the 12
weeks to 9 September.
Sales at shops open more than a
year were up 5.6 per cent during the
period with non-tobacco sales rising
4.5 per cent and tobacco sales up 7.6
per cent. Sales of fruit and vegetables
were up 34 per cent.
Booker chief executive Charles
Wilson said the company had
improved prices and services.
Customers have rewarded us with
an increased share of their spend, he
said in a statement.
Booker takings rise on increased
demand for fresh fruit and veg
RETAIL

DIRECTORIES publisher Yell Group

yesterday said it signed an agreement
with cloud computing firm
Netbiscuits to develop an application
that will allow customers to access
online shopping and other sites on
mobile devices.
Yells shares, which have plummet-
ed by nearly three-quarters over the
past year, were up 13 per cent after
the announcement.
Local entrepreneurs and business
operators will be able to extend their
digital marketing and commercial
activities by offering customers new
mobile services and experiences,
regardless of the platform or device,
the company said.
Yell, which has tie-ups with compa-
nies like Microsoft, also said it
expects to sign additional partner-
ships to further develop its online
marketing platform.
The company, whose net debt
stands at 2.7bn against a market cap-
italisation of about 103m, said it did
not expect to breach any of its
covenants this financial year.
Yell held an investor day yesterday
to draw attention to progress it is
making with Microsoft branding it
an exciting new strategy aimed at
transforming the Group into being a
leader in the emerging local
eMarketplace for consumers and
small and medium enterprises.
Yell to develop shopping apps
with new partner Netbiscuits
BY JOHN DUNNE
MEDIA

H&M SALES BEAT FORECASTS

Swedish budget fashion group Hennes & Mauritz yesterday reported sales for August
that smashed worries that gloomy consumer sentiment would dent appetite for new
clothes. Total sales were up eight per cent against analysts expectations of 2.3 per cent.
Turnover in the June-August quarter was 26.9bn crowns (3.17bn) excluding VAT.
News
13 CITYA.M. 16 SEPTEMBER 2011
ANALYSIS l Kesa
p
9Sept 12Sept 13Sept 14Sept 15Sept
96
94
92
90
88
86
91.60
15 Sept
CENTAUR, the B2B publishing and
exhibitions business, yesterday
posted improved full-year results
thanks to cost-cutting but still
booked a loss on writedowns and
redundancy payoffs.
Revenue rose 14 per cent to
68.3m for the year to the 30 June,
and adjusted EBITDA increased 50
per cent to 9.9m. But the company
posted a pre-tax loss of 30.3m fol-
lowing a 32.2m non-cash impair-
ment charge and exceptional costs
of 3.4m relating to redundancies.
In July, Centaur announced a
restructuring to streamline the
business into the three divisions of
business publishing, business infor-
mation and exhibitions.
The restructuring has put us in
a much stronger place, said
Centaur boss Geoff Wilmot, who
expects future growth to come
from events such as Marketing
Week Live, where revenues rose 26
per cent, and from digital products
such as Perfect Information, a busi-
ness tool for investment bankers
and corporate lawyers.
Digital revenues rose 19 per cent
to account for 26 per cent of
Centaurs total revenues.
Trade magazines New Media Age
and Design Week became online-
only brands as part of the cost-sav-
ing measures, while Logistics
Manager, ABC&D and Process
Engineering have been sold, with
talks underway to find a buyer for
Recruiter magazine.
But Wilmot said the publishers
eight remaining print titles, which
include The Lawyer and Marketing
Week, will remain print brands as
long as there is a demand for paper
products as part of a wider portfo-
lio of other media.
Restructuring cuts
losses for Centaur
BY HARRIET DENNYS
MEDIA

EDUCATION and publishing

group Pearson is to spend $400m
(252m) to acquire a US-based
firm which runs virtual public
schools serving more than
40,000 students who chose not
to attend traditional schools.
Pearson, which is growing
strongly in its education divi-
sion, said the virtual schools
were accredited and funded by
the relevant states and were free
to parents and students.
The acquisition of
Connections Education also
gives Pearson the opportunity to
apply the virtual skills and tech-
nologies to new segments and
geographies within its business.
Pearson said Connections
Education had produced rev-
enue growth of more than 30
per cent in each of the past three
years and expects to generate
revenues of around $190m in
2011.
Pearson expects the deal to
enhance adjusted earnings per
share from 2012, its first full
year, including integration costs.
Pearson expands with a
252m Connections buy
MEDIA

News
14 CITYA.M. 16 SEPTEMBER 2011
MELTDOWN MONDAY THREE YEARS ON: THE EVENTS OF 15 SEPTEMBER 2008
ANALYSIS l Centaur Media
p 38.50
37.50
12Sept 13Sept 14Sept 15Sept
38.00
15 Sept
BERNANKE LOOSENS LENDING RESTRICTIONS
In the early hours of Monday 15 September, 2008,
Federal Reserve chairman Ben Bernanke (right)
expands short-term lending to banks by taking all
investment-grade debt as collateral, instead of just
T-bills and other high-grade securities.
LEHMAN BROTHERS FILES FOR CHAPTER 11
Just after midnight in New York, Lehman Brothers files
for bankruptcy under Chapter 11 with the US
Bankruptcy Court for the Southern District of New York
LEHMAN EMPLOYEES
CLEAR THEIR DESKS
Bankers at Lehman
Brothers, which had
26,000 employees at the
end of June 2008, began
clearing their desks on
Monday morning (left)
BUSH ATTEMPTS TO CALM INVESTORS
Speaking in the Rose Garden at the White
House, US President George W Bush (right)
acknowledged that markets were in turmoil,
and sought to calm investors by saying: We
are working to reduce disruptions and min-
imise the impact on the [broader economy].
BANK OF AMERICA BUYS
MERRILL LYNCH
After talks for Bank of America
to buy Lehman fall through, it
announces an agreement to
acquire Merrill Lynch for up to
50bn. "It didn't take but two
seconds to see the strategic
implications, the positive implica-
tions," said BofA chief executive
Ken Lewis (left) at the time.
FTSE LOSES 200
POINTS
The FTSE 100 lost over
200 points, closing 3.92
per cent down on the
days session. It lost 4.5
per cent by midday but
then rallied slightly
from a low of 5,124 to
close at 5,204.
AIG LOOKS FOR CASH TO AVOID DOWNGRADE
Insurance giant American International Group races to
raise cash in order to avoid credit rating downgrades.
Shares of the firm lost close to two-thirds of their
value during trading as the market nervously waited
for the company to announce a restructuring plan.
The US federal government asks Goldman Sachs and
JPMorgan Chase to head up a $70-$75bn lending pool
for the troubled company.
THE STEPS WE ARE ANNOUNCING TODAY, ALONG
WITH SIGNIFICANT COMMITMENTS FROM THE
PRIVATE SECTOR, ARE INTENDED TO MITIGATE
THE POTENTIAL RISKS AND DISRUPTIONS TO
MARKETS -- BEN BERNANKE, FED CHAIRMAN
Eircom wins
headroom on
bank covenants
LENDERS to struggling Irish telecoms
group eircom have agreed to waive its
debt covenants, averting a possible
default on 3.8bn (3.3bn) of debt, the
company said yesterday.
The waiver, which lasts until 15
December, provides a necessary peri-
od of stability that allows restructur-
ing discussions to take place during
the next three months, eircom Group
chief executive Paul Donovan said.
A source with direct knowledge of
the vote said lenders had agreed to the
waiver in an unanimous vote.
MEDIA

I NEVER ONCE CONSIDERED THAT IT

WAS APPROPRIATE TO PUT TAXPAYER
MONEY ON THE LINE WHEN IT CAME TO
LEHMAN BROTHERS -- HENRY PAULSON,
TREASURY SECRETARY
ON 15 September 2008, global markets were
thrown into panic mode as US investment
bank Lehman Brothers filed for bankruptcy
after failing to secure a rescue sale.
The announcement kicked off a day of
unprecedented corporate chaos in the US
by late morning, Bank of America had
agreed to buy struggling Merrill Lynch, and
the Fed has asked the rest of the US bank
community to shore up AIG to the tune of
$70bn. Three years on, we look back at the
events that shaped meltdown Monday.
EMBATTLED care home provider
Southern Cross said yesterday it has
extended its banking facilities for
another week, giving it breathing
space while it continues its restruc-
turing.
Southern Cross said the extension
with lenders will provide support for
the process under which it is planned
to transition homes to new operators
nominated by Landlords.
The firm yesterday handed over 35
care homes to the Maria Mallaband
Care Group, safeguarding more than
2,000 jobs. The firms shares have
been suspended since July.
ALEX Snow, chief executive of invest-
ment manager Evolution Group, has
slashed a generous award of share
options allocated to him just days
before sale talks became public.
Snow asked Evolutions remunera-
tion committee to reduce a gift of
shares granted to him under its exec-
utive share incentive plan from 2m to
just 1.29m after it swiftly concluded
takeover talks with an offer from
South African wealth group Investec.
Evolution gifted Snow the shares
on 25 July as well as call rights over
another 570,000 deferred shares in
lieu of a 400,000 raise to his salary.
But Evolution confirmed a
takeover approach just five days later
on 3 August and in less than two
months the board recommended
Investecs offer priced at more than
1 per share, moves that threw the
awards sharply into focus.
The total 2.5m share award would
be worth 2.6m at the offer price.
Evolution said Snow had request-
ed that the committee reduce the
quantum of the awards and cancel
the deferred 570,000 share award in
light of the firms impending change
of control.
The committee has agreed to this
request and those awards will not
now be granted, the group said.
Snow still holds 4.17m shares
through both the firms executive
share incentive plan and 2010 joint
share ownership plan, which would
net him almost 4.2m from
Evolutions sale.
Investecs takeover bid values
Evolution at 233m and will be put to
a shareholder vote in a meeting
scheduled for the second half of 2010.
Snow will become executive chair-
man of Investecs UK investment
banking division and sit on the
Investec bank and wealth boards.
Snow slashes
his 2.6m Evo
share award
BANK of America said yesterday it
has agreed to sell its stake in HCA
back to the hospital firm in a move
that will raise the firm $1.5bn
(950m).
Bank of America is attempting to
cut $5bn from its annual costs and
bolster its cash pile as part of a
restructuring.
"The transaction is consistent with
our strategy of selling non-core
assets, building liquidity and
strengthening the balance sheet,"
said a spokesman for Bank of
America.
The deal for more than 80m HCA
shares sent the hospital firms stock
up almost 12 per cent yesterday.
Bank of America originally inher-
ited the stake through its purchase
of Merrill Lynch in 2008.
The award winning Galaxy S II.
Slimmer
8.49mm Slim Design
Brighter
Faster
Dual Core Processor
Read the reviews: its all in black and white at samsung.com/uk/galaxys2
Bank of America
sells stake in HCA
THE FUTURE of AssetCo was uncer-
tain yesterday after the troubled fire
engine supplier said Arcapita Bank
had pulled out of takeover talks.
Bahraini-based Arcapita said yester-
day it has been unable to reach satis-
factory agreement with the
Companys existing lenders and pref-
erence shareholders and so would
not be making an offer for AssetCo.
The two firms had been in exclusive
talks since July.
AssetCo, which rounded up 10m
from investors in July to keep the firm
afloat, hopes to raise a further 14m
through a share issue.
Arcapita ends
AssetCo talks
Southern Cross
extends loans
BY ALISON LOCK
FINANCIAL SERVICES

SUPPORT SERVICES

SUPPORT SERVICES

Evolution Group
chief executive Alex
Snow, a former
Harlequins and
England rugby
player
BY MARION DAKERS
BANKING

News
15 CITYA.M. 16 SEPTEMBER 2011
ANALYSIS l Evolution
p
96
92
9Sept 12Sept 13Sept 14Sept 15Sept
91.75
15 Sept
CONSTRUCTION firm Kiers shares
rose almost six per cent yesterday after
it posted better than expected profits,
helped by a shift away from public sec-
tor work as budgets come under pres-
sure.
Britains third largest contractor
said underlying pre-tax profits for the
year to June rose 24 per cent to 68.9m
compared with 55.5m the previous
year, on revenues up four per cent to
2.2bn.
The group cut its exposure to the
public sector to 56 per cent from 75
per cent in 2010 as it shifts its focus
towards private sector projects.
We are encouraged by the
prospects we see in markets such as
power and waste, in mixed?use regen-
eration and in the growth we see in
public sector outsourcing, chief exec-
utive Paul Sheffield said.
In a separate statement, Kier
announced a it had won a four-year
contract worth up to 1bn from Scape,
a local government-controlled firm.
The group declared a 10 per cent
hike in its dividend to 64p per share.
Kier sees lift
in profits and
ups dividend
GATWICK Express passengers could
be facing ongoing disruptions, after
it was announced that rail workers
on the line are to be balloted for
industrial action in response to the
threat of job cuts.
The Rail, Maritime and Transport
(RMT) union has confirmed that it is
prepared to lead its members to
strike action in response to the
increased automation of ticket gates
on the line.
The union said that it is concerned
that, with planned ticket gate addi-
tions at both Gatwick and Victoria
station terminals, worker redundan-
cies will follow.
Bob Crow, general secretary for
RMT, has said that the union will do
everything in its power to ensure
that members jobs are defended at
Southern Railway, the company
which owns and operates the
Gatwick Express.
Responding to the unions
announcement, Southern said it was
contractually committed to gating
Gatwick Express platforms at both
stations as part of its franchise for
the service.
Cobham swoops on US
antenna firm for $126m
AEROSPACE and defence company
Cobham has agreed to buy US satel-
lite antenna manufacturer Trivec-
Avant Corporation in a deal worth
$126m (80m).
Cobham said the all-cash deal,
which includes possible bonus pay-
ments of up to $18m between 2013
and 2014, is expected to be completed
in the fourth quarter of this year.
The acquisition of Trivec-Avant
Corporation brings us a range of SAT-
COM antenna products and commu-
nication related technologies that are
highly complementary to our exist-
ing business, Andy Stevens, chief
executive of Cobham, said in a state-
ment.
Cobham, which generates around
half of its revenues from the US, saw
first half revenues drop seven per
cent as it suffered from a decline in
US defence contracts and increased
competition.
Trivec, based in California, makes
advanced antenna systems for US and
foreign militaries.
The deal will help boost the
Cobhams world-leading antennas
business and increase investment in
highly differentiated technology,
the group said.
Gatwick Express
faces strike action
BY KASMIRA JEFFORD
CONSTRUCTION

SHARES in Kazakhstan-focused Max

Petroleum edged up yesterday after it
announced that it expects to start
drilling a well on the Emba B
prospect by the end of October at the
latest.
Max closed up 1.67 per cent to
15.25p on the alternative investment
market last night as it announced it
is preparing to receive a deep drilling
rig for its deep salt drill pro-
gramme on the Emba B prospect in
Kazakhstan, which analysts currently
value at $610m (386m).
Max Petroleum
to start drilling
at Kazakh well
TRANSPORT

ENERGY

DEFENCE

News
16 CITYA.M. 16 SEPTEMBER 2011
NEWS | IN BRIEF
Goldman Sachs adds brokership
Investment bank Goldman Sachs won
another broking mandate yesterday.
CSR, the FTSE 250-listed provider of sil-
icon and software solutions, appointed
Goldman Sachs as its new joint broker
alongside JP Morgan Cazenove. Since
hiring Phil Shelley from UBS, Goldman
Sachs has been pursuing new clients
both within the FTSE 100 and just out-
side it.
Pursuit Dynamics wins contract
Fluid technology firm Pursuit Dynamics
said yesterday that it had won a
400,000 contract to supply its PDX
food system to one of Europes leading
food producers, sending its shares up by
more than seven per cent. The company
said that revenue from the venture
would be seen in stages over the next
three months, with the contract demon-
strating the growing strength of PDXs
offering in the food and beverage sec-
tor. Though the name of the client was
not revealed, Pursuit said it was a
returning customer.
Handelsbanken
In a table dated 13 September, we said
that the five year senior CDS figure for
Handelsbanken was 194.15 basis points.
This was incorrect. Handelsbanken's
five year CDS figures on 8 and 12
September were 108bps and 110bps
respectively, meaning it has amongst
the lowest of the major banks. We
would like to apologise for the error.
RIO TINTO will spend a further $833m
(527m) to speed up its iron ore expan-
sion plans in Western Australia's
Pilbara region, the mining giant
announced yesterday.
The extra spending adds to a $15bn-
plus project to increase its capacity in
the mineral-rich region by 50 per cent
to 330m tonnes a year by 2015.
The Anglo-Australian company said
$520m of the investment would be
spent on upgrading the miners power
and gas networks, while $313m was
earmarked for fuel infrastructure facil-
ities.
These projects provide certainty in
meeting our power and fuel supply
requirements, both now and into the
future, Sam Walsh, chief executive of
Rio Tinto Australia, said.
Other iron ore producers including
Fortescue Metals have also stepped up
expansion in the Pilbara region.
Rio Tinto boosts iron ore
expansion in Australia
Iron ore producers are heavily investing in the mineral-rich Pilbara region
BY KASMIRA JEFFORD
MINING

ANALYSIS l Kier
p
1,200
1,160
1,120
9Sept 12Sept 13Sept 14Sept 15Sept
1,189.00
15 Sept
THE BANK of England (BoE) may
expect consumer price index (CPI)
inflation to come down next year, but
consumers themselves do not agree
and are increasingly dissatisfied with
the Banks ability to control prices.
Inflation of 4.2 per cent over the
next year is expected according to an
average of the surveys responses,
taken in August. That is up on the 3.9
per cent expectations in May.
Longer-term expectations increased
too, with respondents anticipating
inflation of 3.5 per cent in the follow-
ing 12 months, up from the 3.2 per
cent predicted three months earlier.
Expectations of inflation even further
ahead considered to be five years in
the future are up to 3.5 per cent from
3.3 per cent in May.
Net satisfaction with the Banks per-
formance fell from 22 per cent to just
16 per cent levels last seen in 2009.
Respondents believe inflation is cur-
rently running at 4.8 per cent, com-
pared with the latest CPI figure of an
annual 4.6 per cent, while the retail
price index (RPI) often seen as a
more accurate measure of living costs
because it includes housing rose at
5.2 per cent over the year.
This suggests respondents think the
RPI measure reflects their spending
habits more closely than the CPI.
BoE forecasts anticipate CPI infla-
tion falling to closer to its two per cent
target in 2012 and 2013, with an
even chance of falling below target.
However, high inflation expecta-
tions can push inflation itself higher
through, for example, increasing wage
demands. That may make further QE
from the MPC less likely, say analysts.
The hawkish members of the MPC
are likely to be very uncomfortable
about launching QE2 right now, said
Nomuras Philip Rush. The MPC risks
doing serious damage to its credibility,
causing an even longer and larger
overshoot of its inflation target.
EMPLOYMENT growth accelerated in
the Eurozone in the second quarter,
Eurostat announced yesterday, but the
European Commission (EC) cut its
growth forecasts for the rest of 2011.
Official figures point to a 0.3 per
cent increase in Eurozone employ-
ment in the three months from April
to June, while the 27 EU nations as a
whole enjoyed a 0.2 per cent increase
in jobs over the period.
That is an acceleration from the 0.1
per cent growth seen in the first quar-
ter in both groups.
Compared with the same period in
2010, employment was 0.4 per cent
higher in the Eurozone and 0.3 per
cent higher in the EU27.
That growth is not expected to last,
however. Based on analysis of the
largest seven member states, the EC
has revised its GDP growth estimates
for quarters three and four down to
0.2 per cent in each. That is a fall of
0.2 and 0.3 percentage points respec-
tively.
Analysts worry the gloomier out-
look will impact on jobs.
Unfortunately, the Eurozone econ-
omy has taken a marked turn for the
worse in recent months and business
confidence has weakened apprecia-
bly, and this will undoubtedly impact
on labour markets, said Howard
Archer from IHS Global Insight.
Eurozone consumer price index
inflation in the year to August
remained at 2.5 per cent, unchanged
from Julys figure.
Fastest Eurozone jobs gain since 2008
could be halted by weaker economies
MONTHLY rents have grown for the
seventh month in a row, according to
figures out today from LSL Property
Services buy-to-let index.
Londons rents increased by 1.5 per
cent on average last month compared
with July, hitting new highs of 1,025
per month. That compares with prices
of 713 across England and Wales,
which went up 1.2 per cent over
August.
Rent in the capital has increased by
6.6 per cent over the year to August
equivalent to a 63 per month hike.
Landlords can expect growing
returns on properties, according to LSL
Property Services director David
Newnes.
With house prices in the capital
outperforming the rest of the UK, the
average London landlord would have
made a total annual return of nearly
15,000 in August, he said.
Arrears increased in August, howev-
er, with 10.7 per cent of UK rent
unpaid or paid late.
Londons soaring rents
boost landlords returns
HOUSING

A MEASURE of financial misery is up

in the US, according to figures out
yesterday showing unemployment
and inflation on the rise.
Annual Consumer Price Index (CPI)
inflation increased to 3.8 per cent.
That figure is added to the unemploy-
ment statistics currently 9.1 per
cent to create the misery index,
which now stands at 12.9, its highest
since the 1980s.
Manufacturing fell in New York
state for the fourth consecutive
month, according to the Feds empire
state manufacturing index, out yes-
terday. The general business condi-
tions index edged down from -8.7 to
-8.8, as shipments and inventories
both plummeted.
Better news came from Augusts
industrial production statistics,
which were also released yesterday by
the Fed. Output increased 0.2 per
cent month-on-month, adding to
Julys rise of 0.9 per cent. In the year
to August, it increased by 3.4 per
cent.
However, that is not enough to
brighten the overall picture, say ana-
lysts.
Prices are rising faster than
expected and output growth is mini-
mal, which highlights the spectre of
stagflation in the worlds largest
economy, and investors know it, said
Benjamin Wilson from the Centre for
Economics and Business Research.
Unhappy
States as
prices rise
US ECONOMY

LOW WAGES may have been the foun-

dation of Chinas economic boom,
but its competitive advantage in the
space is disappearing, according to a
report from KPMG out yesterday.
Other south and south-east Asian
countries like Bangladesh and
Indonesia are now significantly
cheaper locations for manufacturing
activities.
After years of high growth, wages
have increased a development
encouraged by the government,
which seeks to boost the minimum
wage as part of its 12th five year plan.
The consultancys study also
reports that Indonesian footwear
exports increased by 42 per cent in
2010, topping $2bn.
Sourcing goods in China purely
because of ultra-low costs is a thing of
the past, KPMGs Nick Debnam said.
But it is going to be impossible to
avoid the challenge of rising wages
entirely wherever you are in the
region.
China loses competitive
edge as its wages climb
ASIAN ECONOMY

NO GROWTH in retail sales by volume

was registered in August year-on-year,
the Office for National Statistics
announced yesterday.
Sales fell over the month, losing 0.2
per cent on Julys volumes.
Internet sales were up and now
account for 9.6 per cent of the mar-
ket. That compares with 8.1 per cent
in July, and 7.1 per cent in August
2010.
The previous peak for online shop-
ping came in December of last year
when 9.1 per cent of purchases were
made over the internet.
Overall, sales of household goods
plummeted 4.1 per cent by volume
compared with August last year,
whilst petrol sales increased 1.6 per
cent, year-on-year.
Analysts believe inflation is taking
its toll on shoppers. Even though
sales volumes stayed static, sales by
value increased by 4.7 per cent com-
pared with August of last year.
High inflation is killing off any
hope of a recovery on the high street,
said Samuel Tombs from Capital
Economics. With consumer confi-
dence at exceptionally low levels,
house prices starting to fall again and
high inflation eroding real earnings,
the downturn on the high street
seems likely to intensify in the com-
ing months.
That brings more worries for the
state of the wider economy, too.
As consumer spending accounts
for roughly two-thirds of gross domes-
tic product, there is therefore a
strong chance that the economy
could stagnate or even contract again
before the end of the year, said
Markits Chris Williamson. However,
with inflation likely to fall next year
the squeeze on incomes should ease,
so the longer-term outlook is perhaps
a little brighter.
Retail sales fail to improve
BY TIM WALLACE
RETAIL

Shoppers lose
faith in MPCs
hold on prices
BY TIM WALLACE
UK ECONOMY

BY TIM WALLACE
EUROZONE ECONOMY

OECD BOSS CALLS FOR JOBS BOOST

High unemployment is the human face of the crisis, said OECD secretary general Angel
Gurria, launching the bodys Employment Outlook 2011 report. Warning that high
unemployment could easily become entrenched, he called for governments across the rich
world to take action, whilst continuing with their fiscal adjustments: Hiring subsidies
can be a cost effective way to boost job creation in the short run.. Picture: GETTY
ANALYSIS l Inflation expectations
%
Inflation experienced
over last 12 months
Inflation
expectations
over next
12 months
Inflation
expectations
in longer term
Feb2010 Jun10 Oct 10 Apr 2011 Jun11
6
5
4
3
2
1
0
News
18 CITYA.M. 16 SEPTEMBER 2011
Independent Trustee Services
Martine Trouard-Riolle has been
appointed as a director of ITS. Trouard-
Riolle started her career as an insolven-
cy lawyer before joining the Pensions
Regulator, where she was head of cor-
porate risk management, with responsi-
bility for the clearance and anti-avoid-
ance teams.
RCM
The asset manager within Allianz
Global Investors has appointed Melissa
Gallagher as director, head of invest-
ment trusts. Gallagher was most
recently head of investment trusts at
Gartmore Investment Management,
where she worked for ten years.
VMA Group
Nina Arnott has joined the executive
recruiter to lead the firms executive
communications practice across the
firms London and Manchester offices.
Arnott was most recently interim
European director of communications
for McDonalds.
Brooks Macdonald
The Aim-listed integrated wealth man-
agement group has hired Diane
Seymour-Williams as a non-executive
director, with immediate effect.
Seymour-Williams is currently an exec-
utive director of the investment manag-
er Lloyd George Management.
Bibby Financial Services
The invoice finance specialist has hired
Elias Violaris as business development
manager, based in its Moorgate office.
Violaris joins from NatWest, where he
was specialist relationship manager.
Home Retail Group
Clare Askem, formerly director of strate-
gic development for Home Retail Group,
has been appointed as managing direc-
tor of Habitat, following the furnishing
brands acquisition by HRG in June.
Alstom Transport
Terence Watson has been promoted to
MD of the firms UK and Ireland busi-
ness. Watson moves from the companys
Paris office, where he led the European
Region for the International Network.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
BlackRock
Amra Balic has joined the asset manager as the
EMEA head of corporate governance and
responsible investment. Balic joins BlackRock
from Standard & Poors, where she was a direc-
tor in European Corporate Credit Ratings,
responsible for corporate governance into the
credit ratings process. Prior to joining S&Ps
Corporate Governance Services team in 2000,
Balic was a financial analyst at the European
Bank for Reconstruction and Development.
+44 (0)20 7557 7245
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
Fourth straight day
of wins on Wall St
I
NVESTORS pushed US stocks
higher for a fourth day yesterday
as coordinated central bank
action encouraged optimism
about dealing with the Eurozone
debt crisis and its threat to the glob-
al recovery.
Major stock indices rose more
than one per cent. Shares of finan-
cial companies, which have been
among the hardest hit by the debt
worries, outperformed other sectors.
The S&P financial index and the
S&P industrial index each rose 1.8
per cent.
Shares of Bank of America rose
four per cent to $7.32. General
Electric gained three per cent to
$16.09.
The European Central Bank, along
with other major central banks, will
reintroduce three-month dollar liq-
uidity operations in the fourth quar-
ter.
The move benefited the European
banking system, which experienced
new stress in finding dollar funds
due to nervousness by lenders.
The bottom line is the EU and the
IMF and the industrialised nations
are trying to convince the market
that the euro is here to stay, euro
land is not going to disintegrate and
Greece is probably going to avoid a
default, said Peter Cardillo, chief
market economist at Rockwell
Global Capital in New York.
The Dow Jones industrial average
was up 149.21 points, or 1.33 per
cent, at 11,395.94. The Standard &
Poors 500 Index was up 15.81 points,
or 1.33 per cent, at 1,204.49. The
Nasdaq Composite Index was up
28.38 points, or 1.10 per cent, at
2,600.93.
Worries about a Greek default
have plagued the stock market for
weeks.
While the S&P 500 index is still
down 10 per cent since 22 July, the
broad gauge has managed a 4.3 per-
cent gain so far this week.
Advancers were leading decliners
by about three to one on the New
York Stock Exchange.
Optimism over containing the
debt crisis came even as German
Chancellor Angela Merkel rejected
the idea of Eurozone bonds as a solu-
tion.
A top official said he expects
lenders to recommend the release of
a vital next tranche of aid to Greece,
warding off the threat of an immi-
nent default.
Gold fell two per cent to three-
week lows, as increasing efforts to
contain the European debt crisis
fueled another volatile session, fur-
ther diminishing bullions appeal as
a safe haven. Prices slid below $1,800
an ounce.
B
RITAINS leading shares rose
yesterday after politicians and
central bankers moved to
shore up market confidence
in the debt-ravaged Eurozone, with
the FTSE 100 index breaking above
an eight-week technical downtrend.
The FTSE 100 ended up 2.1 per
cent, or 110.52 points, at 5,337.54,
extending the rally into a third
straight day.
Fresh support from France and
Germany for Greece overnight, as it
looks to implement austerity cuts
and secure fresh bailout funds,
sparked early gains.
These were added to during the
afternoon after the US Federal
Reserve and other central banks
agreed to conduct three-month US
dollar loans to banks in the final
quarter of 2011 to counter any fund-
ing squeeze.
The coordinated action was an
important short-term measure
given the hazardous pace at which
funding market conditions had
been deteriorating in recent weeks,
said Michael Symonds, financials
analyst at Daiwa Capital Markets.
British banks had not been under
the same pressure as European
peers looking to secure dollar fund-
ing, but would nonetheless benefit
from the improved counterparty
lending environment within the
Eurozone, he said.
Lenders were among those adding
most points to the FTSE 100 index,
with Lloyds Banking Group the
standout gainer, up 7.2 per cent in
volume about 1.5 times its 90-day
average.
Other lenders including Standard
Chartered, Barclays and HSBC rose
strongly, by around four per cent,
and the sector was also supported by
a bullish Nomura note.
Banks were discounting forced
dilutive capital raisings and/or hits
to book value from increased
impairments, the broker said, and
though it did not rule out capital
raisings, it believed they would grow
capital ratios organically.
While the central bank action
gave a boost to lenders, it did little
to address the broader concern of
bank solvency and debt sustainabili-
ty, Symonds said.
This is about central banks buy-
ing time for politicians to hopefully
allow them to get ahead of the sover-
eign crisis.
In addition to fresh support from
France and Germany overnight, the
European Unions top economic
official said international lenders
would likely green light the next
tranche of aid to Athens.
While equity markets used the
news as an excuse to move higher,
Greek credit default swaps still
showed more than a 90 percent
chance that Greece could default,
according to Reuters calculations of
Markit data.
The days gain left the market just
below an intermediate peak, from 8
September, at 5,369.82 which was
important, Bill McNamara, techni-
cal analyst at Charles Stanley said.
It also roughly coincides with
the intermediate highs that were hit
in the middle of August. So there is
a chance of a bit of residual resist-
ance at current levels or slightly
higher, at about 5,380.
If that level was exceeded, the
next logical move would be for it to
test the 1 September high when it
came within spitting distance of
5,450, while a 61.8 per cent
Fibonnacci retracement from the
July high to the August low would
then leave a target of 5,600.
That level is reinforced as a key
point for the FTSE as it was critical
low for the FTSE back in March,
McNamara said.
FTSE extends gains after a
bullish note boosts the banks
THELONDON
REPORT
THENEW YORK
REPORT
20Jun 08Jul 28Jul 7Sep 17Aug
6,200
5,400
5,000
5,800
ANALYSIS l FTSE
5337.54
15 Sept
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Fenner
425
375
275
325
Jul Aug Sep
p
360.00
15 Sept
FENNER
Citigroup rates the engineer buy / high risk with a target price of 478p. The
broker thinks Fenners recent end of year statement suggested trading had
been ahead of expectations, with strength in both its mining conveyor belt
and advance engineering divisions. Citi has upgraded its 2011 earnings per
share forecasts by seven per cent its fourth such upgrade since the start of
the year, and representative of a year on year growth rate of 62 per cent.
ANALYSIS l British American Tobacco
2,900
2,700
2,500
Jul Aug Sep
p
2,755.50
15 Sept
BRITISH AMERICAN TOBACCO
JP Morgan Cazenove rates the tobacco group overweight. The broker
reports an upbeat sentiment at the firm following a presentation by its
sales team and that earnings per share should grow in high single digits
over the medium term. Volume trends have continued to improve, and JP
Morgan expects the group to follow rivals in raising prices in Spain in due
course.
ANALYSIS l GlaxoSmithKline
1,350
1,250
Jul Aug Sep
p
1,292.50
15 Sept
GLAXOSMITHKLINE
Goldman Sachs rates the pharmaceutical group sell with a target price of
11.30. The broker expects sales volumes for the firms Advair drug to con-
tinue falling, leading to a five per cent fall this year. The cornerstone drug is
facing headwinds on several fronts, Goldman adds, with generic rivals
expected in the next six to nine months and a broader switch in the US
away from long-acting products.
News
19 CITYA.M. 16 SEPTEMBER 2011
20
Wealth Management
CITYA.M. 16 SEPTEMBER 2011
LON GD ONCE FIX AM...........1806.00 -23.00
SILVER LDN FIX AM ..................39.48 -1.07
MAPLE LEAF 1 OZ ....................42.33 1.11
LON PLATINUM AM................1800.00 -11.00
LON PALLADIUM AM...............717.00 -4.00
ALUMINIUM CASH .................2329.00 -25.00
COPPER CASH ......................8719.00 -38.00
LEAD CASH...........................2382.50 -42.50
NICKEL CASH......................21155.00 -120.00
TIN CASH.............................23410.00 -95.00
ZINC CASH ............................2155.00 -22.00
BRENT SPOT INDEX................112.21 2.56
SOYA .....................................1382.75 1.50
COCOA..................................2793.00 -55.00
COFFEE...................................268.35 -4.50
KRUG.....................................1845.00 -37.60
WHEAT ....................................161.35 -3.27
AIR LIQUIDE........................................88.62 1.41 100.65 80.90
ALLIANZ..............................................65.73 4.12 108.85 56.16
ALSTOM ..............................................27.79 1.09 45.32 25.03
ANHEUS-BUSCH INBEV ....................36.83 0.21 46.33 33.85
ARCELORMITTAL...............................13.44 0.56 28.55 12.06
AXA........................................................9.90 0.60 16.16 8.05
BANCO SANTANDER...........................5.92 0.29 9.80 5.15
BASF SE..............................................47.81 1.43 70.22 42.19
BAYER.................................................38.96 0.22 59.44 35.36
BBVA......................................................5.85 0.30 10.21 5.03
BMW ....................................................56.52 1.45 73.85 46.21
BNP PARIBAS.....................................30.50 3.60 59.93 23.05
CARREFOUR ......................................16.23 0.34 36.06 14.66
CREDIT AGRICOLE..............................5.52 0.31 12.92 4.59
CRH PLC..............................................11.54 0.39 17.40 10.28
DAIMLER.............................................35.22 0.97 59.09 30.93
DANONE..............................................44.33 0.22 53.16 42.08
DEU.BOERSE OFFRE ........................43.75 0.89 55.75 37.03
DEUTSCHE BANK..............................24.89 1.37 48.70 20.79
DEUTSCHE TELEKOM.........................8.48 0.11 11.38 7.88
E.ON.....................................................15.10 0.82 25.54 12.50
ENEL......................................................3.13 0.09 4.86 2.85
ENI .......................................................13.71 0.34 18.66 11.83
FRANCE TELECOM............................12.11 0.31 17.45 11.26
GDF SUEZ ...........................................21.05 0.74 30.05 18.32
GENERALI ASS...................................11.44 0.40 17.05 10.34
IBERDROLA..........................................5.03 0.26 6.50 4.29
ING GROEP CVA...................................5.10 0.32 9.50 4.32
INTESA SANPAOLO.............................1.05 0.10 2.53 0.85
KON.PHILIPS ELECTR.......................13.20 0.17 25.45 12.06
L'OREAL..............................................74.66 2.01 91.24 69.86
LVMH..................................................115.65 3.85 132.65 97.67
MUNICH RE.........................................85.96 3.20 126.00 78.10
NOKIA....................................................4.45 0.11 8.49 3.33
REPSOL YPF.......................................19.82 0.49 24.90 17.31
RWE.....................................................24.85 1.25 55.88 21.22
SAINT-GOBAIN...................................30.94 1.35 47.64 27.62
SANOFI ................................................48.12 0.78 56.82 42.85
SAP......................................................36.80 0.72 46.15 32.88
SCHNEIDER ELECTRIC.....................42.97 1.22 61.83 37.42
SIEMENS .............................................69.54 2.69 99.39 62.13
SOCIETE GENERALE.........................18.33 0.95 52.70 14.32
TELECOM ITALIA..................................0.78 0.02 1.16 0.70
TELEFONICA ......................................13.99 0.51 19.69 12.50
TOTAL..................................................33.26 0.57 44.55 30.34
UNIBAIL-RODAMCO SE...................136.80 3.30 162.95 124.50
UNICREDIT............................................0.78 0.05 2.05 0.67
UNILEVER CVA...................................22.47 0.00 24.08 20.82
VINCI ....................................................33.60 1.29 45.48 30.31
VIVENDI ...............................................15.84 0.15 22.07 14.10
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5337.54 110.52 2.11
FTSE 250 INDEX . . . . . . . 10324.08 216.21 2.14
FTSE UK ALL SHARE . . . . 2766.46 56.90 2.10
FTSE AIMALL SH . . . . . . . . 774.07 5.96 0.78
DOWJONES INDUS 30 . . 11433.18 186.45 1.66
S&P 500. . . . . . . . . . . . . . . . 1209.11 20.43 1.72
NASDAQ COMPOSITE . . . 2607.07 34.52 1.34
FTSEUROFIRST 300 . . . . . . 932.16 18.94 2.07
NIKKEI 225 AVERAGE. . . . 8668.86 150.29 1.76
DAX 30 PERFORMANCE. . 5508.24 168.05 3.15
CAC 40 . . . . . . . . . . . . . . . . 3045.62 96.48 3.27
SHANGHAI SE INDEX . . . . 2479.06 -5.77 -0.23
HANG SENG. . . . . . . . . . . 19181.50 136.06 0.71
S&P/ASX 20 INDEX . . . . . . 2443.70 40.00 1.66
ASX ALL ORDINARIES . . . 4153.20 62.80 1.54
BOVESPA SAO PAOLO. . 56381.46 95.42 0.17
ISEQ OVERALL INDEX . . . 2463.88 -3.63 -0.15
STI . . . . . . . . . . . . . . . . . . . . 2765.95 26.60 0.97
IGBM. . . . . . . . . . . . . . . . . . . 840.78 29.56 3.64
SWISS MARKET INDEX. . . 5433.48 15.59 0.29
Price Chg %chg
3M........................................................80.63 1.19 98.19 76.00
ABBOTT LABS ...................................51.29 0.37 54.24 45.07
ALCOA.................................................11.98 0.25 18.47 10.99
ALTRIA GROUP..................................26.87 0.32 28.13 23.20
AMAZON.COM..................................226.78 4.21 227.45 143.56
AMERICAN EXPRESS........................49.36 0.37 53.80 37.33
AMGEN INC.........................................56.26 1.00 61.53 47.66
APPLE...............................................392.96 3.66 404.50 265.52
AT&T....................................................28.54 0.28 31.94 27.20
BANK OF AMERICA.............................7.33 0.28 15.31 6.01
BERKSHIRE HATAW B.......................70.83 1.42 87.65 66.51
BOEING CO.........................................64.32 1.29 80.65 56.01
BRISTOL MYERS SQUI ......................29.96 0.33 30.14 20.05
CATERPILLAR....................................86.60 1.15 116.55 70.80
CHEVRON...........................................99.26 1.95 109.94 78.16
CISCO SYSTEMS................................16.67 0.34 24.60 13.30
CITIGROUP.........................................28.59 1.20 51.50 25.40
COCA-COLA.......................................71.02 1.25 71.77 57.22
COLGATE PALMOLIVE......................92.29 0.90 92.32 73.62
CONOCOPHILLIPS.............................66.92 0.95 81.80 54.73
CVS/CAREMARK................................36.90 0.23 39.50 28.98
DU PONT(EI) DE NMR........................46.48 0.96 57.00 42.45
EXXON MOBIL....................................74.01 1.37 88.23 60.36
GENERAL ELECTRIC.........................16.08 0.29 21.65 14.72
GOOGLE A........................................542.56 10.49 642.96 473.02
HEWLETT PACKARD.........................23.27 0.34 49.39 22.13
HOME DEPOT.....................................34.28 0.74 39.38 28.13
IBM.....................................................170.09 2.85 185.63 128.43
INTEL CORP .......................................21.54 0.43 26.78 18.34
J.P.MORGAN CHASE.........................33.81 1.01 48.36 31.21
JOHNSON & JOHNSON.....................64.40 0.67 68.05 57.50
KRAFT FOODS A................................34.95 0.42 36.30 24.30
MC DONALD'S CORP ........................88.07 1.32 91.22 72.14
MERCK AND CO. NEW......................32.49 0.37 37.68 29.47
MICROSOFT........................................26.99 0.49 29.46 23.65
OCCID. PETROLEUM.........................84.41 1.58 117.89 73.86
ORACLE CORP...................................28.95 0.80 36.50 24.72
PEPSICO.............................................63.22 1.64 71.89 59.25
PFIZER ................................................18.49 0.08 21.45 16.25
PHILIP MORRIS INTL .........................68.29 0.70 72.74 54.26
PROCTER AND GAMBLE ..................62.78 0.44 67.72 56.57
QUALCOMM INC ................................53.63 0.56 59.84 40.58
SCHLUMBERGER ..............................74.22 1.29 95.64 57.28
TRAVELERS CIES..............................49.84 0.90 64.17 46.62
UNITED TECHNOLOGIE ....................75.61 1.93 91.83 67.12
UNITEDHEALTH GROUP...................50.54 1.86 53.50 33.92
VERIZON COMMS ..............................36.19 0.59 38.95 30.62
WAL-MART STORES..........................52.51 0.31 57.90 48.31
WALT DISNEY CO ..............................32.94 0.65 44.34 29.60
WELLS FARGO & CO.........................25.19 0.50 34.25 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.500 0.00
LIBOR Euro - overnight ..................0.857 0.00
LIBOR Euro - 12 months ................2.030 0.01
LIBOR USD - overnight...................0.147 0.00
LIBOR USD - 12 months.................0.835 0.00
HaIifax mortgage rate .....................3.990 0.00
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.000 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................3.330 0.04
European repo rate.........................0.759 0.00
Euro Euribor ....................................1.089 0.00
The vix index ...................................33.02 -1.57
The baItic dry index ........................1.927 0.02
Markit iBoxx...................................230.54 -2.06
Markit iTraxx..................................183.30 -7.09
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.3868 0.0126
C/ 0.8771 0.0053
C/ 106.38 0.9695
/C 1.1408 0.0088
/$ 1.5813 0.0050
/ 121.30 0.3836
FTSE 100
5337.54
110.52
FTSE 250
10324.08
216.21
FTSE ALLSHARE
2766.46
56.90
DOW
11433.18
186.45
NASDAQ
2607.07
34.52
S&P 500
1209.11
20.43
Smiths Group . . . . . .969.5 24.5 1429.0 907.5
Brown (N.) Group . . .280.0 8.3 311.2 232.3
Carpetright . . . . . . . . .518.5 3.5 835.5 493.7
Debenhams . . . . . . . . .59.1 3.0 77.4 51.2
Dignity . . . . . . . . . . . .823.0 7.0 838.5 633.0
Dixons RetaiI . . . . . . .11.7 0.2 28.5 10.6
DuneImGroup . . . . . .451.9 24.8 550.0 378.4
HaIfords Group . . . . .280.3 6.1 482.7 268.6
Home RetaiI Group . .110.2 -0.4 235.0 105.1
Inchcape . . . . . . . . . .300.6 13.1 425.4 268.1
JD Sports Fashion . .860.0 -5.0 1030.0 726.0
Kesa EIectricaIs . . . . .91.6 4.5 174.0 84.0
Kingfisher . . . . . . . . .251.1 11.5 287.1 217.0
Marks & Spencer G . .330.8 4.3 427.5 301.8
Mothercare . . . . . . . .352.3 1.1 627.5 343.1
Next . . . . . . . . . . . . .2588.0 105.0 2593.0 1868.0
Sports Direct Int . . . .222.5 2.5 266.2 125.5
WH Smith . . . . . . . . . .500.0 4.5 523.0 433.8
Smith & Nephew . . . .598.0 1.0 742.0 521.0
Synergy HeaIth . . . . .893.5 5.5 981.0 690.0
Barratt DeveIopme . . .81.1 4.1 119.0 67.5
BeIIway . . . . . . . . . . . .596.0 27.5 753.5 511.0
BerkeIey Group Ho .1258.0 27.0 1299.0 789.5
BaIfour Beatty . . . . . .246.4 7.0 357.3 228.6
KeIIer Group . . . . . . .350.0 42.7 698.5 307.3
Kier Group . . . . . . . .1189.0 65.0 1418.0 1071.0
Drax Group . . . . . . . .533.5 4.5 542.0 353.6
Scottish & Southe . .1301.0 20.0 1423.0 1108.0
Domino Printing S . .562.0 17.0 705.0 507.0
HaIma . . . . . . . . . . . . .350.6 9.4 429.6 305.0
Laird . . . . . . . . . . . . . .150.6 -0.2 207.0 127.9
Morgan CrucibIe C . .263.4 7.4 357.1 205.3
Renishaw . . . . . . . . .1264.0 -6.0 1886.0 970.0
Spectris . . . . . . . . . .1393.0 54.0 1679.0 998.0
Aberforth SmaIIer . . .555.5 10.5 714.0 536.0
AIIiance Trust . . . . . .340.0 5.8 392.7 325.0
Bankers Inv Trust . . .370.1 3.7 428.0 356.5
BH GIobaI Ltd. GB .1204.0 0.0 1212.0 1058.0
BH GIobaI Ltd. US . . . .11.9 -0.2 12.2 10.4
BH Macro Ltd. EUR . . .20.0 -0.1 20.3 15.8
BH Macro Ltd. GBP 2055.0 -15.0 2073.4 1630.0
BH Macro Ltd. USD . . .19.8 -0.2 20.1 15.8
BIackRock WorId M .693.5 13.5 815.5 606.0
BIueCrest AIIBIue . . .170.7 -0.3 176.2 162.4
British Assets Tr . . . .117.2 1.2 140.5 113.0
British Empire Se . . .461.6 4.6 533.0 448.0
CaIedonia Investm .1546.0 0.0 1928.0 1500.0
City of London In . . .270.5 3.6 306.9 257.0
Dexion AbsoIute L . .141.0 -0.6 151.0 135.2
Edinburgh Dragon . .220.0 -0.5 262.1 213.0
Edinburgh Inv Tru . . .451.6 6.3 492.2 414.9
EIectra Private E . . .1301.0 14.0 1755.0 1287.0
F&C Inv Trust . . . . . .285.0 3.7 327.9 268.6
FideIity China Sp . . . . .82.4 -0.7 128.7 80.0
FideIity European . .1018.0 31.5 1287.0 947.0
FideIity SpeciaI . . . . .470.0 4.4 595.0 451.5
HeraId Inv Trust . . . . .442.0 2.8 545.5 420.3
HICL Infrastructu . . . .115.4 0.1 121.3 112.0
Impax Environment . .99.0 1.2 130.5 96.1
JPMorgan American .792.0 12.0 916.0 719.0
JPMorgan Asian In . .195.0 -0.1 250.8 195.0
JPMorgan Emerging .517.5 4.0 639.0 499.3
JPMorgan European .729.5 5.5 983.5 701.0
JPMorgan Indian I . . .373.7 4.6 502.0 354.8
JPMorgan Russian .515.0 9.0 755.0 495.4
Law Debenture Cor . .330.5 1.6 385.0 309.8
MercantiIe Inv Tr . . . .918.0 15.5 1137.0 876.5
Merchants Trust . . . .367.0 8.5 431.8 348.7
Monks Inv Trust . . . .337.0 1.3 367.9 311.3
Murray Income Tru . .608.0 5.0 673.0 577.0
Murray Internatio . . .887.5 8.0 991.5 845.5
PerpetuaI Income . . .245.1 3.2 276.0 230.6
PoIar Cap TechnoI . .334.0 4.0 391.2 299.5
RIT CapitaI Partn . . .1251.0 -4.0 1334.0 1110.0
Scottish Inv Trus . . . .448.0 5.9 524.0 423.5
Scottish Mortgage . .678.5 14.0 781.0 609.5
SVG CapitaI . . . . . . . .233.3 -0.5 279.8 153.8
TempIe Bar Inv Tr . . .835.0 12.5 952.0 782.0
TempIeton Emergin .570.0 8.0 689.5 554.0
TR Property Inv T . . .163.0 4.0 206.1 154.5
TR Property Inv T . . . .74.0 1.0 94.0 68.6
Witan Inv Trust . . . . .441.0 5.0 533.0 426.4
3i Group . . . . . . . . . . .199.7 5.6 340.0 188.4
3i Infrastructure . . . .122.4 1.1 125.2 112.9
Aberdeen Asset Ma .188.8 9.4 240.0 147.1
Ashmore Group . . . .404.0 14.1 420.0 301.5
Brewin DoIphin Ho . .130.5 2.6 185.4 121.3
CameIIia . . . . . . . . . .9450.0 112.510950.0 8900.0
CharIes TayIor Co . . .144.5 5.0 198.3 122.0
City of London Gr . . . .76.3 0.0 93.6 76.3
City of London In . . .381.8 5.5 461.5 314.0
CIose Brothers Gr . . .681.5 4.5 888.5 656.5
CoIIins Stewart H . . . .70.5 0.0 90.8 67.0
EvoIution Group . . . . .91.8 0.8 94.0 62.3
F&C Asset Managem .67.2 1.1 92.9 58.7
Hargreaves Lansdo .468.9 14.6 646.5 402.5
HeIphire Group . . . . . . .2.9 0.0 39.0 2.2
Henderson Group . . .124.4 3.5 173.1 117.4
Highway CapitaI . . . . .14.5 0.0 21.0 6.0
ICAP . . . . . . . . . . . . . .475.3 1.4 570.5 391.3
IG Group HoIdings . .442.6 -0.4 553.0 393.6
Intermediate Capi . . .227.3 3.6 360.3 204.8
InternationaI Per . . . .232.4 12.5 388.8 218.1
InternationaI Pub . . . .114.0 -0.4 118.3 108.6
Investec . . . . . . . . . . .414.2 4.2 538.0 378.7
IP Group . . . . . . . . . . . .44.8 1.3 54.5 27.9
Jupiter Fund Mana . .219.7 12.7 337.3 184.9
Liontrust Asset M . . . .72.5 0.0 95.0 72.0
LMS CapitaI . . . . . . . . .62.0 -0.3 64.8 44.8
London Finance & . . .21.5 0.0 23.5 16.5
London Stock Exch .869.5 22.5 1076.0 675.0
Lonrho . . . . . . . . . . . . .14.8 -0.3 19.8 10.8
Man Group . . . . . . . . .240.1 8.8 311.0 178.0
Paragon Group Of . .155.6 8.2 206.1 134.6
Provident Financi . .1048.0 -4.0 1124.0 728.5
Rathbone Brothers .1048.0 9.0 1257.0 828.0
Record . . . . . . . . . . . . .29.4 0.0 52.0 20.3
RSM Tenon Group . . .21.8 0.0 66.3 21.3
Schroders . . . . . . . .1336.0 4.0 1922.0 1310.0
Schroders (Non-Vo .1083.0 11.0 1554.0 1058.0
TuIIett Prebon . . . . . .386.4 18.6 428.6 329.8
WaIker Crips Grou . . .49.0 0.0 51.5 45.0
BT Group . . . . . . . . . .172.9 3.5 204.1 138.9
CabIe & WireIess . . . .37.8 0.7 61.1 31.3
CabIe & WireIess . . . .31.7 0.7 78.4 30.9
COLT Group SA . . . .108.4 6.9 156.2 100.6
TaIkTaIk TeIecom . . .124.0 0.0 168.3 119.8
TeIecomPIus . . . . . . .690.0 3.0 700.0 365.5
Booker Group . . . . . . .74.6 5.5 77.9 47.9
Greggs . . . . . . . . . . . .472.7 5.3 550.5 429.1
Morrison (Wm) Sup .293.2 0.3 308.3 262.7
Ocado Group . . . . . . .127.3 1.1 285.0 107.0
Sainsbury (J) . . . . . . .282.4 3.6 395.0 275.6
Tesco . . . . . . . . . . . . .371.0 5.0 440.7 360.1
Associated Britis . .1083.0 17.0 1182.0 940.0
Cranswick . . . . . . . . .616.0 2.0 896.0 605.0
Dairy Crest Group . . .332.7 7.7 424.9 325.0
Devro . . . . . . . . . . . . .236.8 4.8 296.9 218.0
Premier Foods . . . . . . .12.4 1.1 35.1 11.3
Tate & LyIe . . . . . . . . .606.0 12.0 656.0 461.6
UniIever . . . . . . . . . .1965.0 3.0 2081.0 1750.0
Mondi . . . . . . . . . . . . .535.0 2.0 664.0 468.8
Centrica . . . . . . . . . . .299.4 4.1 345.8 286.3
InternationaI Pow . . .333.3 6.7 448.6 279.4
NationaI Grid . . . . . . .619.5 -5.5 634.5 530.0
Northumbrian Wate .462.0 0.2 469.5 295.5
Pennon Group . . . . . .684.5 16.0 737.5 579.5
Severn Trent . . . . . .1489.0 18.0 1517.0 1306.0
United UtiIities . . . . .600.0 5.5 631.5 543.5
Cookson Group . . . . .455.9 25.4 724.5 421.1
DS Smith . . . . . . . . . .194.5 3.0 266.2 145.9
Rexam . . . . . . . . . . . .332.3 7.3 400.0 301.5
RPC Group . . . . . . . .320.1 7.9 384.8 215.4
BAE Systems . . . . . .279.0 5.8 369.9 248.1
Chemring Group . . . .547.0 16.0 736.5 485.0
Cobham . . . . . . . . . . .180.0 0.5 245.6 173.4
Meggitt . . . . . . . . . . . .319.7 4.6 397.6 288.3
QinetiQ Group . . . . . .119.9 1.3 136.3 96.7
RoIIs-Royce Group . .616.0 5.0 665.0 557.5
Senior . . . . . . . . . . . . .149.0 6.9 190.6 124.6
UItra EIectronics . . .1398.0 -1.0 1895.0 1305.0
GKN . . . . . . . . . . . . . .194.7 11.1 245.0 159.9
BarcIays . . . . . . . . . . .158.0 6.0 333.6 141.7
HSBC HoIdings . . . . .521.1 19.6 730.9 491.4
LIoyds Banking Gr . . .35.9 2.4 77.4 27.6
RoyaI Bank of Sco . . .23.7 0.9 49.7 19.7
Standard Chartere .1379.0 53.5 1950.0 1295.0
AG Barr . . . . . . . . . .1123.0 -13.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .306.9 0.9 503.5 289.9
Diageo . . . . . . . . . . .1224.0 8.0 1307.0 1070.0
SABMiIIer . . . . . . . . .2237.0 15.5 2340.0 1974.5
AZ EIectronic Mat . . .251.6 6.6 338.1 210.0
Croda Internation . .1846.0 72.0 2081.0 1367.0
EIementis . . . . . . . . . .139.4 4.2 187.4 91.3
Johnson Matthey . .1647.0 69.0 2119.0 1534.0
Victrex . . . . . . . . . . .1251.0 22.0 1590.0 1178.0
YuIe Catto & Co . . . . .172.1 6.3 253.0 150.1
Price Chg High Low
Bovis Homes Group .407.5 13.0 464.7 326.5
Persimmon . . . . . . . .455.9 18.7 502.5 336.5
Reckitt Benckiser . .3275.0 5.0 3648.0 3015.0
Redrow . . . . . . . . . . . .114.0 4.1 139.0 98.4
TayIor Wimpey . . . . . . .32.6 1.5 43.3 22.3
Bodycote . . . . . . . . . .279.0 11.9 397.7 247.0
Charter Internati . . . .869.5 9.5 874.0 538.5
Fenner . . . . . . . . . . . .360.0 5.0 422.5 231.0
IMI . . . . . . . . . . . . . . . .834.5 33.5 1119.0 733.0
MeIrose . . . . . . . . . . .303.5 10.4 365.4 254.0
Northgate . . . . . . . . . .271.2 3.5 346.7 202.0
Rotork . . . . . . . . . . .1660.0 30.0 1895.0 1501.0
Spirax-Sarco Engi . .1851.0 42.0 2063.0 1649.0
Weir Group . . . . . . .1862.0 73.0 2218.0 1371.0
Ferrexpo . . . . . . . . . . .378.4 10.2 499.0 292.4
TaIvivaara Mining . . .300.0 8.8 622.0 283.4
BBAAviation . . . . . . .168.0 4.0 240.8 156.0
Stobart Group Ltd . . .126.9 -1.1 163.6 124.1
AdmiraI Group . . . . .1314.0 40.0 1754.0 1270.0
AmIin . . . . . . . . . . . . .287.0 8.3 427.0 278.4
BeazIey . . . . . . . . . . . .116.7 2.2 139.2 109.6
Informa . . . . . . . . . . . .345.6 15.5 461.1 324.0
ITE Group . . . . . . . . . .184.5 2.1 258.2 160.5
ITV . . . . . . . . . . . . . . . . .57.2 0.8 93.5 51.7
Johnston Press . . . . . . .4.7 -0.1 15.3 4.4
MecomGroup . . . . . .148.5 1.8 310.0 145.3
Moneysupermarket. .114.0 6.3 120.4 75.7
Pearson . . . . . . . . . .1110.0 32.0 1207.0 926.0
PerformGroup . . . . .205.0 -5.0 234.5 150.0
Reed EIsevier . . . . . .490.7 11.0 590.5 461.3
Rightmove . . . . . . . .1251.0 -4.0 1307.0 725.0
STV Group . . . . . . . . .109.5 0.5 168.0 89.8
Tarsus Group . . . . . .138.8 2.3 165.0 112.5
Trinity Mirror . . . . . . . .40.5 0.5 124.0 37.5
UBM . . . . . . . . . . . . . .447.8 24.0 725.0 416.0
UTV Media . . . . . . . . .125.0 -3.0 151.0 101.0
WiImington Group . . .86.3 3.0 183.0 82.8
WPP . . . . . . . . . . . . . .626.0 11.5 846.5 578.5
YeII Group . . . . . . . . . . .5.0 0.6 16.6 4.2
African Barrick G . . .595.0 -21.5 638.0 393.5
AngIo American . . .2496.5 75.5 3437.0 2234.0
AngIo Pacific Gro . . .288.6 -5.5 369.3 257.1
Antofagasta . . . . . . .1291.0 49.0 1634.0 1136.0
Aquarius PIatinum . .218.0 2.8 419.0 211.2
BHP BiIIiton . . . . . . .1986.0 37.0 2631.5 1846.0
Centamin Egypt Lt . .104.0 0.3 197.1 89.7
CatIin Group Ltd. . . .353.8 14.4 421.4 325.0
Hiscox Ltd. . . . . . . . . .351.6 -1.6 424.7 340.5
Jardine LIoyd Tho . . .663.0 44.0 709.0 564.5
Lancashire HoIdin . . .695.5 37.0 700.0 529.0
RSA Insurance Gro . .113.9 4.1 143.5 107.9
Aviva . . . . . . . . . . . . . .306.4 9.0 477.9 289.2
LegaI & GeneraI G . . . .97.0 4.4 123.8 90.9
OId MutuaI . . . . . . . . .115.4 2.0 145.2 103.2
Phoenix Group HoI . .520.0 5.0 730.0 458.0
PrudentiaI . . . . . . . . .599.0 12.0 777.0 564.5
ResoIution Ltd. . . . . .246.5 5.0 316.1 211.3
St James's PIace . . . .324.7 13.9 376.0 236.2
Standard Life . . . . . . .195.9 4.9 244.7 172.0
4Imprint Group . . . . .211.5 -0.5 295.0 195.0
Aegis Group . . . . . . .126.8 2.2 163.5 120.6
BIoomsbury PubIis . .101.3 1.3 138.0 98.8
British Sky Broad . . .699.5 -2.5 850.0 618.5
Centaur Media . . . . . . .38.0 0.4 73.0 36.5
Chime Communicati .183.0 7.8 298.5 173.0
Creston . . . . . . . . . . . .82.0 1.0 121.0 78.5
DaiIy MaiI and Ge . . .375.7 12.9 594.5 359.5
Euromoney Institu . .559.5 16.0 736.0 522.5
Future . . . . . . . . . . . . . .11.8 0.3 30.0 10.8
Haynes PubIishing . .235.0 0.0 262.5 202.5
Huntsworth . . . . . . . . .58.0 0.5 86.0 56.5
Eurasian NaturaI . . .661.0 15.0 1125.0 585.5
FresniIIo . . . . . . . . . .1907.0 -20.0 2150.0 1168.0
GemDiamonds Ltd. .234.0 7.8 306.0 179.8
GIencore Internat . . .437.3 16.7 531.1 348.0
HochschiId Mining . .520.0 -1.0 680.0 407.3
Kazakhmys . . . . . . .1066.0 33.0 1671.0 918.0
Kenmare Resources . .45.5 1.0 59.9 17.2
Lonmin . . . . . . . . . . .1216.0 55.0 1983.0 1103.0
New WorId Resourc .565.0 27.0 1060.0 514.5
PetropavIovsk . . . . . .838.0 -8.5 1252.0 676.0
RandgoId Resource 6730.0-205.0 7070.0 4425.0
Rio Tinto . . . . . . . . .3606.0 76.0 4712.0 3387.5
Vedanta Resources 1413.0 44.0 2559.0 1225.0
Xstrata . . . . . . . . . . .1039.0 39.3 1550.0 933.4
Inmarsat . . . . . . . . . . .498.0 3.0 724.5 389.7
Vodafone Group . . . .163.4 1.1 182.8 155.1
Genesis Emerging . .469.8 10.6 568.0 444.5
Afren . . . . . . . . . . . . . .105.4 2.2 171.2 92.5
BG Group . . . . . . . . .1262.0 27.0 1564.5 1082.5
BP . . . . . . . . . . . . . . . .411.0 15.9 509.0 363.2
Cairn Energy . . . . . . .295.4 6.4 469.7 281.4
EnQuest . . . . . . . . . . .100.8 0.1 158.5 95.1
Essar Energy . . . . . .262.6 9.1 589.5 235.1
ExiIIon Energy . . . . . .293.0 28.3 469.7 190.0
Heritage OiI . . . . . . . .234.8 1.3 486.0 190.0
JKX OiI & Gas . . . . . .173.0 -3.0 335.1 160.0
Premier OiI . . . . . . . . .346.2 1.3 535.0 310.0
RoyaI Dutch SheII . .2100.0 67.0 2326.5 1861.0
RoyaI Dutch SheII . .2127.5 73.5 2336.0 1807.5
SaIamander Energy .217.0 2.4 317.6 200.4
Soco Internationa . . .358.2 14.5 461.8 279.8
TuIIow OiI . . . . . . . . .1400.0 -12.0 1493.0 945.5
Amec . . . . . . . . . . . . .946.0 29.0 1251.0 834.0
Hunting . . . . . . . . . . .639.5 4.5 817.0 592.5
LampreII . . . . . . . . . . .285.8 6.8 395.2 254.5
Petrofac Ltd. . . . . . .1390.0 51.0 1685.0 1110.0
Wood Group (John) .569.5 23.5 715.8 390.1
Burberry Group . . . .1457.0 90.0 1600.0 906.0
PZ Cussons . . . . . . . .335.9 4.1 409.0 320.5
Supergroup . . . . . . .1136.0 51.0 1820.0 818.5
AstraZeneca . . . . . .2806.0 36.5 3359.0 2543.5
BTG . . . . . . . . . . . . . .266.3 6.3 309.7 210.1
Genus . . . . . . . . . . . . .997.0 6.0 1046.0 772.0
GIaxoSmithKIine . . .1292.5 13.0 1385.0 1127.5
Hikma Pharmaceuti .580.0 10.5 900.0 555.5
Shire PIc . . . . . . . . . .1980.0 30.0 2136.0 1405.0
CapitaI & Countie . . .175.8 4.7 203.7 129.0
Daejan HoIdings . . .2401.0 -1.0 2954.0 2282.0
F&C CommerciaI Pr .100.0 -0.7 108.0 88.0
Grainger . . . . . . . . . . .103.3 1.8 133.2 86.3
London & Stamford .122.1 3.7 140.0 110.3
SaviIIs . . . . . . . . . . . . .290.5 0.5 427.1 288.2
St. Modwen Proper . .139.4 8.4 196.2 123.5
UK CommerciaI Pro . .77.5 0.4 85.5 70.4
Unite Group . . . . . . . .179.1 2.9 229.8 152.9
Big YeIIow Group . . .263.7 3.4 353.3 234.2
British Land Co . . . . .509.0 15.0 629.5 464.0
CapitaI Shopping . . .325.0 7.3 424.8 312.5
Derwent London . . .1588.0 49.0 1880.0 1411.0
Great PortIand Es . . .370.1 14.0 445.0 328.6
Hammerson . . . . . . . .390.2 8.2 490.9 382.0
Hansteen HoIdings . . .75.0 1.7 89.5 64.8
Land Securities G . . .674.0 16.0 885.0 620.5
SEGRO . . . . . . . . . . . .235.4 -0.6 331.3 232.4
Shaftesbury . . . . . . . .471.9 10.5 539.0 426.3
Autonomy Corporat 2529.0 0.0 2532.5 1271.0
Aveva Group . . . . . .1494.0 29.0 1799.0 1385.0
Computacenter . . . . .384.3 -5.2 490.0 286.4
Fidessa Group . . . . .1580.0 19.0 2109.0 1409.0
Invensys . . . . . . . . . . .244.3 7.7 364.3 221.7
Kofax . . . . . . . . . . . . .310.0 27.9 535.0 253.0
Logica . . . . . . . . . . . . .84.5 4.0 147.2 80.3
Micro Focus Inter . . .333.6 3.2 426.2 239.4
Misys . . . . . . . . . . . . .274.9 4.7 420.2 234.7
Sage Group . . . . . . . .259.0 3.8 302.0 231.7
SDL . . . . . . . . . . . . . . .612.0 2.0 711.5 555.0
TeIecity Group . . . . . .553.0 12.5 572.5 430.0
Aggreko . . . . . . . . . .1838.0 38.0 2034.0 1394.5
Ashtead Group . . . . .146.0 8.1 207.9 99.4
Atkins (WS) . . . . . . . .552.0 8.0 820.0 513.5
Babcock Internati . . .625.5 19.5 733.0 513.5
Berendsen . . . . . . . . .460.8 9.9 568.0 390.0
BunzI . . . . . . . . . . . . .787.0 23.0 812.5 676.5
Capita Group . . . . . . .722.0 11.5 794.5 635.5
CariIIion . . . . . . . . . . .336.6 7.5 403.2 298.8
De La Rue . . . . . . . . .775.5 1.5 853.5 549.5
EIectrocomponents .205.3 6.9 294.9 190.0
Experian . . . . . . . . . . .721.0 18.0 833.5 663.0
FiItrona PLC . . . . . . . .362.8 10.0 385.5 227.5
G4S . . . . . . . . . . . . . . .263.5 3.7 291.0 237.7
Hays . . . . . . . . . . . . . . .73.2 1.2 133.6 69.4
Homeserve . . . . . . . .480.0 11.7 532.0 408.0
Howden Joinery Gr . .109.0 7.0 127.5 71.0
Intertek Group . . . . .2000.0 52.0 2148.0 1715.0
MichaeI Page Inte . . .357.1 8.3 567.0 338.7
Mitie Group . . . . . . . .235.1 7.1 242.5 191.2
Premier FarneII . . . . .163.0 8.0 308.8 151.9
Regus . . . . . . . . . . . . . .74.8 1.2 119.0 64.0
RentokiI InitiaI . . . . . . .77.5 -0.2 106.9 72.9
RPS Group . . . . . . . . .185.7 -0.3 253.0 179.5
Serco Group . . . . . . .501.0 8.7 633.0 490.0
Shanks Group . . . . . .113.4 -0.6 130.9 101.1
SIG . . . . . . . . . . . . . . .100.0 1.9 153.5 96.0
SThree . . . . . . . . . . . .228.0 2.0 447.6 221.6
Travis Perkins . . . . . .764.0 36.5 1127.0 722.0
WoIseIey . . . . . . . . .1550.0 29.0 2261.0 1404.0
ARM HoIdings . . . . . .610.0 11.5 651.0 338.9
CSR . . . . . . . . . . . . . .237.5 12.5 447.0 208.0
Imagination Techn . .399.0 11.5 502.0 296.9
Pace . . . . . . . . . . . . . .105.3 2.3 231.8 91.0
Spirent Communica .124.1 2.6 160.3 116.0
British American . .2755.5 7.0 2871.0 2282.5
ImperiaI Tobacco . .2004.0 -8.0 2231.0 1784.0
Avis Europe . . . . . . . .313.8 -0.4 314.4 184.0
Betfair Group . . . . . . .741.0 21.0 1550.0 567.0
Bwin.party Digita . . .126.9 2.5 297.9 100.6
CarnivaI . . . . . . . . . .2082.0 22.0 3153.0 1742.0
Compass Group . . . .552.5 5.0 612.0 511.5
Domino's Pizza UK . .501.0 1.0 586.0 377.0
easyJet . . . . . . . . . . . .329.9 5.3 479.0 301.0
Enterprise Inns . . . . . .39.2 3.2 122.7 32.5
FirstGroup . . . . . . . . .339.9 0.6 412.6 311.3
Go-Ahead Group . . .1470.0 24.0 1598.0 1085.0
Greene King . . . . . . .458.3 10.8 518.0 410.0
InterContinentaI . . .1067.0 20.0 1435.0 955.0
InternationaI Con . . .156.7 2.7 305.0 146.2
JD Wetherspoon . . . .406.7 7.1 468.3 389.9
Ladbrokes . . . . . . . . .125.1 1.9 155.3 120.0
Marston's . . . . . . . . . . .97.1 2.8 117.1 87.1
MiIIennium& Copt . .413.0 8.3 600.5 395.5
MitcheIIs & ButIe . . . .267.1 7.1 361.0 216.4
NationaI Express . . .232.7 2.5 270.2 220.7
Rank Group . . . . . . . .127.7 1.7 153.7 109.5
Restaurant Group . . .274.4 5.3 335.0 254.9
Spirit Pub Compan . . .43.0 2.2 55.0 37.0
Stagecoach Group . .247.1 1.1 268.5 180.4
Thomas Cook Group .47.8 8.7 204.8 33.7
TUI TraveI . . . . . . . . . .150.0 5.9 271.9 137.2
Whitbread . . . . . . . .1640.0 33.0 1887.0 1409.0
WiIIiamHiII . . . . . . . . .228.0 1.5 237.3 155.5
Abcam . . . . . . . . . . . .372.5 6.8 460.0 307.0
AIbemarIe & Bond . .362.6 1.6 400.1 250.0
Amerisur Resource . .16.3 0.5 29.0 11.5
Andor TechnoIogy . .592.5 12.5 685.0 327.0
ArchipeIago Resou . . .75.8 1.3 79.0 32.3
ASOS . . . . . . . . . . . .1785.0 60.0 2468.0 1067.0
AureIian OiI & Ga . . . .46.0 1.3 92.0 42.5
Avanti Communicat .315.0 -2.8 735.0 288.8
Avocet Mining . . . . . .272.5 -4.5 286.8 135.5
BIinkx . . . . . . . . . . . . .151.5 7.0 153.8 70.5
Borders & Souther . . .50.0 0.4 93.0 44.8
BowLeven . . . . . . . . .123.5 -2.0 398.0 115.3
Brooks MacdonaId 1232.5 9.0 1372.5 907.5
Conygar Investmen . .97.5 0.5 120.0 92.5
Cove Energy . . . . . . . .75.0 2.0 112.8 60.0
Daisy Group . . . . . . . .110.0 -1.0 127.0 88.0
EMIS Group . . . . . . . .547.5 2.5 580.0 330.0
Encore OiI . . . . . . . . . .50.3 -1.3 151.5 40.8
Faroe PetroIeum . . . .162.0 4.0 218.3 133.0
GuIfsands PetroIe . . .178.3 0.8 401.5 142.5
GWPharmaceuticaI .104.0 -2.0 130.0 83.0
Hamworthy . . . . . . . .546.0 5.0 705.0 360.0
Hargreaves Servic .1000.0 18.0 1076.0 660.0
HeaIthcare Locums . . . .9.0 0.6 10.6 8.4
Immunodiagnostic .1102.0 104.0 1218.0 768.5
ImpeIIamGroup . . . .350.0 0.0 387.5 133.0
James HaIstead . . . . .435.0 9.0 495.0 323.5
KaIahari MineraIs . . .240.3 3.0 301.0 142.0
London Mining . . . . .376.3 6.3 436.5 283.0
Lupus CapitaI . . . . . . .98.0 3.0 150.0 86.0
M. P. Evans Group . .440.0 17.0 500.5 371.0
Majestic Wine . . . . . .413.3 -7.0 510.0 318.0
May Gurney Integr . .245.0 3.0 295.0 177.0
Monitise . . . . . . . . . . . .35.0 0.3 39.0 18.5
MuIberry Group . . . .1490.0 30.0 1920.0 375.0
Nanoco Group . . . . . . .58.0 1.0 115.8 56.3
NauticaI PetroIeu . . .289.0 20.0 547.0 191.5
NichoIs . . . . . . . . . . . .520.0 -5.0 579.0 410.0
Numis Corporation . . .90.0 -3.5 139.5 89.3
Pan African Resou . . .13.0 -0.3 14.5 8.2
Patagonia GoId . . . . . .65.0 0.0 70.0 20.3
Prezzo . . . . . . . . . . . . .58.8 0.3 71.5 52.5
Pursuit Dynamics . . .209.0 14.0 700.0 160.5
Rockhopper ExpIor .221.0 -14.3 510.0 141.0
RWS HoIdings . . . . . .430.0 0.0 479.8 258.5
Songbird Estates . . .120.5 0.5 160.3 110.3
VaIiant PetroIeum . . .455.0 5.0 761.5 438.3
Young & Co's Brew . .652.5 0.0 712.0 530.0
Thomas Cook Group .47.8 22.4
KeIIer Group . . . . . . .350.0 13.9
ExiIIon Energy . . . . . .293.0 10.7
Kofax . . . . . . . . . . . . .310.0 9.9
Premier Foods . . . . . . .12.4 9.3
Enterprise Inns . . . . . .39.2 8.8
Booker Group . . . . . . .74.6 7.9
LIoyds Banking Gro . .35.9 7.2
Jardine LIoyd Thom .663.0 7.1
Howden Joinery Gro .109.0 6.9
African Barrick Go . .595.0 -3.5
RandgoId Resources6730.0 -3.0
Perform Group . . . . .205.0 -2.4
AngIo Pacific Grou . .288.6 -1.9
JKX OiI & Gas . . . . . .173.0 -1.7
Computacenter . . . . .384.3 -1.3
BH GIobaI Ltd. USD . .11.9 -1.3
AG Barr . . . . . . . . . .1123.0 -1.1
FresniIIo . . . . . . . . . .1907.0 -1.0
BH Macro Ltd. USD . .19.8 -1.0
Risers FaIIers
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NONEQUITY INVESTM. COMM.
Tsy 3.250 11 . . . . .100.50 0.00 103.2 100.5
Tsy 9.000 12 . . . .107.10 0.00 115.2 106.7
Tsy 5.000 12 . . . . .102.11 -0.01 106.3 102.1
Tsy 5.250 12 . . . .103.41 0.00 107.7 103.4
Tsy 4.500 13 . . . .105.80 0.01 108.8 105.7
Tsy 2.500 13 . . . .284.06 0.02 287.7 277.5
Tsy 8.000 13 . . . . .114.93 0.02 120.7 114.8
Tsy 5.000 14 . . . . .112.38 -0.03 114.1 109.2
Tsy 4.750 15 . . . . .114.46 -0.10 114.8 108.6
Tsy 8.000 15 . . . .128.60 -0.11 131.3 123.7
Tsy 7.750 15 . . . .102.84 0.82 109.3 102.0
Tsy 4.000 16 . . . . .112.85 -0.19 113.4 104.9
Tsy 2.500 16 . . . .339.26 -0.09 341.0 310.2
Tsy 8.750 17 . . . .140.24 -0.41 142.1 132.9
Tsy 12.000 17 . . .124.25 -0.76 134.3 124.3
Tsy 1.250 17 . . . . .113.96 -0.25 115.0 106.7
Tsy 5.000 18 . . . .120.07 -0.46 121.0 109.7
Tsy 4.500 19 . . . . .117.34 -0.61 118.5 105.4
Tsy 3.750 19 . . . . .111.76 -0.64 112.9 99.4
Tsy 2.500 20 . . . .351.38 -0.43 355.6 312.4
Tsy 4.750 20 . . . . .119.51 -0.62 120.7 106.6
Tsy 8.000 21 . . . .149.84 -0.66 151.6 133.8
Tsy 1.875 22 . . . .122.13 -0.60 123.2 111.3
Tsy 4.000 22 . . . . .112.87 -0.81 114.2 99.0
Tsy 2.500 24 . . . .313.28 -0.63 316.3 273.5
Tsy 5.000 25 . . . .123.14 -0.93 124.8 107.4
Tsy 4.250 27 . . . . .113.28 -0.93 114.8 97.9
Tsy 1.250 27 . . . . .117.19 -0.66 118.4 104.6
Tsy 6.000 28 . . . .137.34 -0.90 139.1 119.5
Tsy 4.750 30 . . . . .119.55 -1.05 121.3 103.0
Tsy 4.125 30 . . . .297.27 -0.68 300.3 261.2
Tsy 4.250 32 . . . . .111.96 -1.13 113.8 96.0
Tsy 4.250 36 . . . . .110.62 -1.27 112.7 95.0
Tsy 4.750 38 . . . . .119.30 -1.32 121.7 102.8
Tsy 4.500 42 . . . . .116.19 0.00 116.2 98.9
% %
Secure Haven.
Exceptional Location.
Quality of Life.
Endless Opportunities.
Andermatt Swiss Alps
Freedom and Security.
Blending authencity with modernity, Anderma Swiss
Alps is a visionary resort located in the midst of the un-
spoilt grandeur of the Swiss Alps. Uniquely in Switzerland,
foreign naonals buying and selling property in Anderma
Swiss Alps are exempt from Lex Koller legislaon, provid-
ing a exible asset in one of the historically most stable
property markets in the world. The 30 leading internaonal
architects selected to design the resort have used the ar-
chitectural language of a tradional alpine village in conjunc-
on with innovave construcon techniques. The result?
Chalets and apartments that combine the subtle charm of
the Alps with the convenience and air of a contemporary
home that exceeds the most stringent Swiss sustainability
standards. Located in the heart of Europe between Zurich
and Milan, Anderma has superb communicaons links to
the rest of the connent and the world beyond. A secure,
sustainable haven in an unspoilt year-round Alpine desna-
on, Anderma Swiss Alps will feature world class hotels,
exceponal retail and extensive leisure facilies including
a number of spas and a superb championship golf course.
www.anderma-swissalps.ch | + 41 41 888 77 99
realestate@anderma-swissalps.ch
K
Living | Dream property
GARY OLDMAN
IN TINKER TAILOR
SOLDIER SPY, PAGE 33
Award-winning
city penthouse
This beautiful development in Shoreditch is a
truly enviable place to live, says Zoe Strimpel
F
OR sale by the buildings architects,
the couple Patrick Theis and Soraya
Kahn, the penthouse in this extraordi-
narily elegant, intelligent develop-
ment in Shoreditch is a prime and
prestigious choice for anyone working in
the City. The building designed to be both
for working and living has won several
awards and was short-listed for the highly
prestigious Royal Institute of British
Architects (RIBA) Stirling Prize 2010, and
went on to win RIBA Building of the Year
2010.
The property also won the Hackney
Council Design Awards 2010, with the
judges opining that this ingenious mixed-
used development combines quirky fea-
tures with fine attention to detail.
Batemans Rows modest, yet stunning,
faade conceals an intricate, geometric puz-
zle within.
The defining feature of this penthouse is
light and elegance of line. The sense of
space and light is maximised through the
use of plate glass, exposed concrete and
neat lines. Plus, it has that most coveted of
London attributes: views, in this case, daz-
zling ones of the City. The penthouse has
lots of open space, and a garage and private
lift.
Being in the heart of Shoreditch not only
guarantees an incredibly easy commute to
work (even if you work outside the City,
Liverpool Street and Old Street are nearby
with numerous rail and Tube connections),
it also ensures youre smack bang in the
middle of some of Londons best cultural
offerings and exciting restaurants.
The stunning, award-winning Batemans Row pent-
house apartment is for sale through Foxtons, for
2.95m. Foxtons Shoreditch, 020 7033 1414.
www.foxtons.com
21
Living | Home Counties
22 CITYA.M. 16 SEPTEMBER 2011
Call: 0800 883 8823
www.bowtrinity.co.uk
Call or see website for details
BOWTRINITYE3
GREAT APARTMENTS
NOW ON SALE
Sales Centre at 193 Bow Common Lane - Open daily
A development by:
Photograph of typical Telford Homes kitchen interior.
*Price correct at time of going to press.
CGI of the Reid Building, Bow Common Lane.
Selling Agent:
020 8981 3666
In the heart of Bow, centrally located to take full advantage
of terrific transport links
Spacious one, two & three bedroom apartments in
a selection of private sale apartment buildings
Exceptional interiors, fixtures, fittings and Customer
Service support; ready for occupation from (est.) March 2012
Prices from 205,000*
MARKET COMMENT
During August we took on 20 per cent
more property instructions than we did
last year. This is despite the fact that
property stock levels are down by 15
per.
While the number of new applicants
registering with estate agents is down
on Julys figures to be expected for
August the total number of applicants
remains high. This further supports the
trend identified last month. This showed
increasing number of applicants regis-
tering with multiple estate agents and
widening their search across several
areas of London.
With property market revenue up 38
per cent on last year and no reported
fall-throughs on property sales across
any of our offices, it appears the riots
have not had an effect on the resilient
London property market.
DEMAND
2011
2010
Nov Dec Jan Feb Mar Apr May Jun Jul AugSept
2000
1800
1400
1200
1000
800
600
400
200
0
Newapplicants: 2010
Newapplicants: 2011
SUPPLY
2011
2010
Nov Dec Jan Feb Mar Apr May Jun Jul AugSept
600
500
400
300
200
100
0
SUPPLY & DEMAND
Demand
Demand2010
Supply
Supply 2010
Jan FebMarAprMayJun Jul AugSeptOct NovDec
1600
1400
1200
1000
800
600
400
200
0
THE LONDON BAROMETER
Ed Mead
DIRECTOR OF
DOUGLAS & GORDON
DOUGLAS & GORDON AVERAGE LONDON SALES PRICE INDEX
Q3 2010 Q4 2010 Q1 2011 Q2 2011
1 Bed Flat 375,000 361,667 368,333 374,167
2 Bed Flat 523,750 527,917 543,333 557,083
3 Bed House 1,101,667 1,120,417 1,174,167 1,209,583
4 Bed House 1,658,333 1,691,667 1,780,833 1,905,833
The number of people who registered with estate agents this summer remained high
Living | Home Counties
23 CITYA.M. 16 SEPTEMBER 2011
Getting the very
best from the
Home Counties
Donata Huggins looks at the markets
best buys outside Greater London
P
EOPLE are often very unfair to
the Home Counties, says
James Grillo of Chesterton
Humberts, There is so much
more to it than sprawling suburbia.
Indeed, as he points out, theres
more woodland per acre in Surrey
than another county in England.
The schools are great, the commute
is quick and the properties are fabu-
lous.
But the difference between the
places, he argues, is cosmetic. All
the real Home Counties that is
those practically touching London
are awash with excellent schools,
beautiful countryside and speedy
access to the city. Most people only
chose to move to one county over
another because they have a social
connection to it, or they prefer the
architecture in one place to another.
The architecture in each county is
really different because they all
developed at different times, Grillo
explains. Generally speaking, he says,
if youre keen to live in a Georgian
house, its got to be Surrey. While if
youre after Victorian Arts and Crafts
architecture, it has to be
Hertfordshire or Buckinghamshire.
And Surrey if you would like to live
in a converted oast house.
But prices do vary. Surrey and Kent
command higher prices than
Hertfordshire and Essex. Property
Vision estimates that there is a 10-20
per cent difference between the two
on like-for-like homes. All the coun-
ties have a Waitrose and there arent
any black spots for schools. I just
dont understand the price differen-
tials between the north and the
south counties.
With property prices outside
London increasing at a slower pace,
now might be the time to shift out of
the city into more peaceful areas. We
look at the finest homes in each of
the real Home Counties.
ROSE HILL, BURNHAM
Price: 4.25m
This eight-bedroom country
house is set in 16 acres of
parkland gardens. It has five
reception rooms and six bath-
rooms. The property comes
with planning permission for a
substantial rear and side
extension to create further
reception space, a library, cel-
lar and cinema rooms. There
is provision for a large garage
and secondary accommoda-
tion block.
Contact: Savills on 01494 731
950 or go to www.savills.co.uk
MATHAM MANOR,
EAST MOLESEY
Price: 2.395m
This six-bedroom 15th century
grade II-listed manor house
sits within a beautiful one-acre
walled garden. The ground
floor has an entrance hall,
kitchen-breakfast room with
handmade units and an Aga, a
dining room, drawing room,
conservatory, utility room and
cloakroom. Upstairs, there are
two bedrooms with an en
suite bathrooms, a third bed-
room and a family bathroom.
There are two further bed-
rooms on the second floor.
Contact: John D Wood on
01372 462211 or go to
www.johndwood.co.uk
THEYDON MANOR, THEYDON BOIS
Price: 3m
Theydon Manor is a six-bedroom former rectory. It is approached along a long sweeping
driveway through electric gates and sits in six acres that are divided between formal
grounds and two paddocks. A detached two-bedroom cottage on the grounds is also
included in the sale. The main property is spread across three floors and has been recently
refurbished.
Contact: Hetheringtons on 01992 815314 or go to www.hetheringtons.co.uk
CHURCH GATE HOUSE, THATCHAM
Price: 850,000
This grade II-listed former vicarage set in almost half an acre of grounds has five bed-
rooms, three large reception rooms and a study. It lies within the conservation area of
Thatcham adjoining the 15th century church. It is three miles from the bustling small town
of Newbury.
Contact: Jackson-Stops & Staff on 01635 45501 or go to www.jackson-stops.co.uk
MURLINGDEN,
LAMBERHURST
Price: 3.25m
This grade II-listed, early-
Victorian property is set in 28
acres. It has four bedrooms, a
family bathroom and a separate
living suite. The land also houses
a double garage, greenhouse, a
wood store, vineyard, tennis
court, landscaped garden and
grounds. Contact: Knight Frank
on 020 7561 1505 or go to
www.knightfrank.com
MANOR HOUSE, BAYFORD
Price: 3.75m
The present owners have lived in
Bayfords Manor House for over 43
years, keeping the garden and
interiors well maintained. It has
six bedrooms, three bathrooms,
extensive attic rooms, kitchen, din-
ing, drawing, sitting and playroom,
scullery and wine store. Contact:
Knight Frank on 020 7861 1722 or
go to www.knightfrank.com
l HERTFORDSHIRE
l KENT
l ESSEX l SURREY
l BUCKINGHAMSHIRE l BERKSHIRE
*You must meet the criteria set down by this Government scheme to be eligible, details of which are available from the Crest Nicholson sales advisor. The contribution will need to be repaid when the property is sold or after 25 years i.e. up to 20% of the propertys
total sale price (10% Government contribution and 10% Crest Nicholson contribution). You will also require 3,500 towards legal costs. The amount of deposit required may vary depending on the scheme rules and the lender for the mortgage nance. If you are in
any doubt about this scheme please seek independent advice. The offer is subject to status and Crest Nicholsons terms and conditions for reservations in a strictly limited period only. Crest Nicholson does not provide mortgages and cannot give any nancial advice.
Prices correct at time of going to press. Photography taken at Riva. Digital illustration is indicative only. Crest Nicholson Eastern, a division of Crest Nicholson Operations Limited, One Myrtle Road, Brentwood, Essex, CM14 5EG.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY DEBT SECURED ON IT.
www.crestnicholson.com/riva 0845 894 9206
Marketing Suite & Show Apartment
open daily 10am to 5pm
Email: riva@crestnicholson.com
Selling Agent: Acorn 0208 852 4455
Hurry, limited availability with FirstBuy -
just four apartments left!

Find out if you qualify
call 0845 894 9206 now!
Helping rst time buyers on to the property ladder.
With FirstBuy you pay just 80% of the price now, with the
remaining funded by a 20% top up loan from Crest Nicholson
and the Government. Plus, you only need a 5% deposit
owning your own home is possible with FirstBuy!
Ready to move into now, this stylish new collection of 1 & 2 bedroom
apartments is perfectly situated close to excellent overground and
DLR travel links.
The new apartments at Riva have been designed to meet the needs of
todays homeowner. The fully tted kitchens feature integrated appliances
including a fridge/freezer, single oven, hob and extractor. All apartments
provide spacious living accommodation with stylish internal designs,
sizable bedrooms and a contemporary, sleek nish throughout.
There is also a landscaped communal garden for all residents to enjoy.
How it works:
1 bedroom apartment at 185,000
FirstBuy price: 148,000*
Your 5% deposit 9,250
Your 75% mortgage 138,750
Total FirstBuy price 148,000
20% FirstBuy equity loan 37,000
TOTAL PURCHASE PRICE 185,000
1 & 2 bedroom apartments from 185,000
FirstBuy price from just 148,000*
9,250
Own 100%
Pay 80%,
with a deposit of only
RIVA
Lee High Road | Lewisham | SE13 5LD
India Pavilion 2011
Looking for REAL property bargains?
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Living | Europe
25 CITYA.M. 16 SEPTEMBER 2011
PETIT-SACONNEX, RIGHT BANK, GENEVA
Price: SFR8.5m
A 5 bedroom property with staff accommodation and swim-
ming pool located in the highly sought after leafy suburb of
Genevas right bank. Contact: Knight Frank, www.knight-
frank.com/switzerland, tel: 020 7629 8171
CHALET, VERBIER
Price: SFR25.7m
Indoor pool and spa, wine cellar, cinema room, billiards room
and an ultra-luxe contemporary look created by mature tim-
ber, granite, slate and upholstered leather. Contact: Savills,
www.alpinehomesintl.com, tel: +41 27 323 7777
Edges smoothed
on Swiss prices
The pegging of the Swiss franc to the euro has
helped reassure buyers and sellers of
luxury Swiss property, says Zoe Strimpel
O
RDINARY mortals find the cost of a
single pizza in Switzerland stagger-
ing friends reported having to pay
SFR50 for one in Verbier a few weeks
ago. Indeed, with the Swiss franc having
appreciated by 20 per cent against the euro
in the last 12 months alone, the Swiss econ-
omy has felt the effects on trade and
tourism.
But for property hunters and sellers, the
pegging of the soaring Swiss Franc to the
euro last week was a comfort. Agents have
reported a surge of life in the property mar-
ket, a slew of good properties coming to
market and interest from buyers, too.
Alex Koch de Gooreynd, of Knight Franks
Swiss desk, says: Until now, those looking
to sell have apparently been worried that
they would have to reduce their asking
prices significantly to balance out the issue
with the exchange rate.
A property costing a certain amount last
week now costs a fraction this week: If a
British buyer were looking to purchase a
property costing 20m Swiss francs late last
year, it would have cost them around
12.5m. Buying the same property a week
ago, before this move by the authorities,
would have cost them closer to 17m or
18m. The capping of the franc last week
means that same property would now cost
just under 14.3m.
Jeremy Rollason, managing director of
Savills Swiss Associate, Alpine Homes, com-
mented: Tuesdays decision is welcome
news for European buyers who have been
put off, or have been holding off investing
in Switzerland because of the Swiss Francs
strength.
Weve chosen some of the most appealing
properties to consider now that prices have
sunk.
EMERALD LIVING,
LUGANO
Price: SFR1.48m-7.26m
Nestled on the slopes of
Monte San Salvatore,
enjoying dramatic views
of Lugano and its lake.
Contact: www.knight-
frank.com/switzerland,
tel: 020 7629 8171
ALPHA GRAND DUC, NENDAZ
Price: SFR940,000
Spacious three-bedroom apartment in a chalet
located in the heart of Nendez, with gorgeous
mountain views and close proximity to the shops
and restaurants of the resort. Contact: Savills,
www.alpinehomesintl.com, tel: +41 27 323 7777
Living | Focus On
26 CITYA.M. 16 SEPTEMBER 2011
RENAISSANCE
Price: 181,000
This second floor, one-
bedroom flat comprises
470 square feet, includ-
ing a private balcony. It
is situated in a develop-
ment with landscaped
gardens, opposite
Lewisham DLR station. It
was designed in collabo-
ration with artist Phil
Coy whose signature fea-
ture is the developments
eye-catching coloured
glass exterior.
Contact: Barratt Homes
on 084 5871 0005 or go
to www.barratthomes.
co.uk/london
BOYNE ROAD
Price: 550,000
This three bedroomed
house offers period
charm and spacious liv-
ing. It comprises of a
bright reception room
with a bay-fronted win-
dow and fireplace, sepa-
rate dining room with a
set of oversized French
doors leading to the
reception room, a
kitchen-breakfast room
with access to the gar-
den, airy master bed-
room, two further double
bedrooms, and a bath-
room with a separate
shower cubicle.
Contact: Foxtons on 020
8432 7200 or go to
www.foxtons.co.uk
Commuting: Commuting to the City from
Lewisham takes 25mins from Ladywell Rail Station,
arriving in London Bridge. Canary Wharf isnt diffi-
cult to reach either. A train from Lewisham DLR
Station arrives in Canary Wharf in 20mins.
Education: There are a couple of great schools in
Lewisham. The pupils at the independent schools St
Dunstan's College and Sydenham High School both
achieve excellent results.
NEED TO KNOW | AREA INSIGHT
LEWISHAM, SE13 BY DONATA HUGGINS
LEWISHAM | PRICES
Detached Semi-Detached Terraced Flats
Lewisham 590,000 449,252 321,378 203,687
London average 791,353 430,258 448,423 340,317
Source: Savills
CALIFORNIA BUILDING
Price: 249,950
This one-bedroom first floor flats biggest selling point is its private terrace. It has
a reception area, open-plan kitchen and bathroom. The development has a commu-
nal gym, swimming pool and a number of restaurants and bars.
Contact: Foxtons on 020 8432 7200 or go to www.foxtons.co.uk
RIVA
Price: 187,500 or
150,000 with the
FirstBuy initiative.
This one-bedroom
flat has an open-plan
kitchen and dining
area with a balcony,
bedroom and sepa-
rate bathroom. The
apartment is avail-
able to buy with the
government-backed
FirstBuy initiative,
designed to help first
time buyers onto the
property ladder.
Contact: Crest
Nicholson on 0845
694 9206 or go to
www.crestnichol-
son.com/riva.
Living
27 CITYA.M. 16 SEPTEMBER 2011
Q.
The worktops in our
kitchen are looking very
tired. Is it easy to replace
them? If so, which material
should we use?
A.
The look of a kitchen is
defined largely by the work-
top style. After a few years,
the kitchen units are often still serv-
iceable, but the worktops start
showing their age. Thankfully, it is
easy to update your worktops to give
thenn a newer look, and there is a
wide variety of choice depending on
your budget. A favourite for work-
tops is granite because its available
in a wide range of colours and quali-
ties. Over the past few years engi-
neered products have become
popular too, with Corian and
Silestone leading the market. These
worktops are produced from a tem-
plate that is taken after a kitchen is
installed. Retro fitting is easily done,
but you do need to be aware that it
can be expensive. Prices start at
around 200 a metre. For a quick
and easier solution, Granite
Transformations will fit a 6mm gran-
ite top to your existing worktop. A
cheaper alternative to this could also
be high quality laminate. Bushboard
do a good selection, including prod-
ucts that look like engineered stone.
Whatever you choose, consider using
an up-stand rather than a tiled
splash-back. This gives a more con-
temporary and cleaner look.
Q.
With autumn approaching,
how easy is it to give my
home a new look for the
new season?
A.
You can easily achieve a new
look by making a few simple
changes. As the days get
shorter using autumnal colours in
your home will provide a very com-
forting feel over the winter months.
The quickest and easiest way to
update your interior is to review and
renew the accessories. If you have
storage space you can store the sum-
mer accessories away and change
them with the season. This will help
to keep your interior fresh. Using rich
berry tones for the soft furnishing is
a good idea. Another easy thing to do
is replace lighter curtains and voiles
with heavier interlined curtains for
the winter. You can also easily
repaint one wall in the home to add a
splash of colour. These easy tips will
give your home a new look without
the difficulty and expense of total
redecoration.
CURRENT MORTGAGE DEALS BY DONATA HUGGINS Source: MoneySupermarket.com
Lender Fixed/Flexible Rate Until apr Maximum Loan to
(per cent) (per cent) Value (per cent)
Santander Flexible 1.95 2 years 4 60
Skipton BS Flexible 1.98 2 years 4.8 60
Chelsea BS Flexible 1.99 September 2013 4.9 60
First Direct Flexible 2.09 2 years 3.6 65
Santander Fixed 2.35 November 2013 4.1 60
Chelsea BS Fixed 2.39 November 2013 5.4 70
Leeds BS Fixed 2.45 October 2013 5.4 60
Yorkshire BS Fixed 2.79 November 2014 4.5 75
First Direct Fixed 2.79 3 years 3.7 65
THE LUXURY PROPERTY SHOW IS COMING TO THE HURLINGHAM CLUB
The Luxury Property Show is coming to town on 1-2 November. It will be taking place within
the stunning grounds of The Hurlingham Club and hosted by TV Property expert Melissa
Porter. The show caters to portfolio and private investors. There will be a VIP and a business
lounge, interactive seminars and the opportunity to have lunch at The Hurlingham Club.
www.theluxurypropertyshow.com
PROPERTY NEWS
BY DONATA HUGGINS
BENTLEY PRIORY DEVELOPMENT LAUNCHED
Londons newest luxury residence Bentley Priory launched last week. The building, in
Stanmore, was formerly an RAF base, which was once the headquarters to the Fighter
Command during World War II. Prices start from 575,000. Contact: Bentley Priory on
01923 297397 or go to www.bentleypriorystanmore.com.
Q A
&
Andrew
Dunning
CREATIVE DIRECTOR
ATDESIGN
CONSULTANCY
APDINTERIORS
INTERIORS
The asset based
finance industry is
racing ahead
Picture: PHOTOSHOT
Asset based finance sector
outperforms wider economy
W
E are all too aware that the UK
economy has struggled to recov-
er and grow following the reces-
sion, with GDP growth
dropping to just 0.2 per cent and with ris-
ing inflation and taxes, as well as low pro-
ductivity, this trend looks set to continue
at least for the near future. The avail-
ability of credit to businesses has also
remained broadly unchanged during the
second quarter of 2011 and the general
perception within the business communi-
ty is that access to funding remains chal-
lenging. Nevertheless, recent figures from
the Asset Based Finance Association (Abfa)
show a contrasting story, with the indus-
try seeing its fifth consecutive quarter of
growth in June 2011.
The asset based finance sector has a his-
tory of growth during periods of econom-
ic stress. During the previous UK
recession, between 1989 and 1991, the
industry averaged 24 per cent growth per
annum and this trend has been repeated
following the 2009-2010 recession, with
advances growing an average 7 per cent
over the last five quarters.
This intrinsic ability to perform well
while the wider market is struggling is
largely due to asset based finance prod-
ucts offering a unique combination of
greater levels of finance for the client
while also reducing the risk for the
lender.
So far this year, Abfa has released three
strong sets of quarterly figures. The 2010
year end figures, released at the begin-
ning of 2011, demonstrated an 8 per cent
year on year increase in total lending as
well as a 1bn increase in advances from
members to 14.9bn.
First quarter 2011 figures also showed
notable growth with total advances
increasing by 9 per cent year on year,
whereas wider bank lending contracted
by 2.5 per cent in the same period. These
figures also showed turnover growth of 15
per cent year on year, with total client
sales in the quarter at 55.8bn.
Furthermore, asset based lending outper-
formed all other types of business lending
during the first quarter of 2011.
The latest figures for the second quar-
ter of 2011, released in early September,
show a fifth consecutive quarter of
growth with total advances from mem-
bers up 12 per cent year on year (see chart,
near right) the first time the industry
has seen double digit growth since the
recovery. The latest figures also show that
there is still capacity in the system, with
advances at only 71 per cent or 15.7bn
of available funds. The total approved
finance, based on the firms sales ledgers,
for the second quarter of 2011 was
22.2bn, meaning that 6.5bn is still
available to clients.
Of the total funding provided by Abfa
members, small and medium enterprises
(SMEs) received almost 40 per cent, or just
over 4bn this quarter. Over half of the
industrys clients are small businesses
with turnover below 1m, and a further
41 per cent of firms are medium sized
businesses with turnover below 10m. In
2010, growth in advances was greater for
the largest clients; however, the last quar-
ter showed the gap between advances to
larger clients (turnover above 100m) and
SMEs contracted (see chart, far right). This
decreasing gap in the level of advances
between SMEs and larger clients suggests
a growing confidence among SMEs as
they become more comfortable with
increasing debt levels. This is also sup-
ported by total clients sales growing 14
per cent over the past year to reach 59bn.
From the figures above, it is clear that
the asset based finance industry is cur-
rently thriving, and one of the key compo-
nents contributing to its success is the
fact that all asset based finance products
factoring, invoice discounting and asset
based lending offer access to finance
based upon a firms outstanding trade
debts. Typically clients can access imme-
diate funding of around 80 per cent to 85
per cent of the outstanding invoices
with the remainder paid as the debt is set-
tled and asset based finance products
can also offer a number of additional ben-
efits, including;
l Facilities that grow in line with the
business, eliminating the need to con-
stantly rearrange funding lines. Products
such as factoring offer the user additional
administrative support something that
small or growing businesses often find
extremely helpful and cost effective
l Funding decisions based upon the
strength of the product and the customer
rather than the strength of the clients
balance sheet; which can vary depending
on the market condition at the time of
the funding application
l Low risk compared with most other
form of lending
Clients using these types of solutions
are also becoming more diverse, a trend
which is likely to continue as businesses
and lenders increasingly appreciate the
products low risk and two-way appeal.
Larger companies are also beginning to
understand and appreciate asset based
structures, with an increasing number of
larger companies using this type of fund-
ing for acquisitions and management
buy-outs (MBO) and management buy-ins
(MBI). Furthermore, equity finance hous-
es are turning to asset based lenders more
regularly as preferred funding partners.
In addition, products such as invoice
discounting and factoring can help banks
to meet their Project Merlin quotas,
with banks increasingly using this type of
finance as a channel to extend funding to
businesses without significantly increas-
ing their own risk and compliance
requirements.
Despite being well established in the
UK and experiencing robust growth and
increasing interest from a diverse client
base, the asset based finance industry is
still in a relatively early stage of develop-
ment compared to many other forms of
lending. As more and more markets
become aware of the benefits of asset
based finance we can expect to see
increased visibility and usage of the prod-
ucts.
By using asset based finance methods,
greater levels of finance can be made
available to solid businesses that may
have been held back by a lack of liquidity.
The above evidence suggests that asset
based finance has been, and will continue
to be, an important product in the eco-
nomic recovery.
This sector is helping businesses improve cash flow by providing liquidity
Business Features| Commercial Finance
28
CITYA.M. 16 SEPTEMBER 2011
KATE SHARP
CHIEF EXECUTIVE, ABFA
31 Mar
2009
31 Mar
2010
31 Mar
2011
3Jun
2011
31 Dec
2009
31 Dec
2010
30Jun
2009
30Jun
2010
30Sep
2009
30Sep
2010
16
15
14
13
12
11
10
10
5
0
-5
-10
ANALYSIS l Advances at the end of second quarter 2011
Total Change on the same
quarter previous year
2010
1st quarter
2010
2ndquarter
2010
3rdquarter
2010
4thquarter
2011
1st quarter
2011
2ndquarter
0.15
0.1
0.05
0
-0.05
-0.1
-0.15
ANALYSIS l Growth in turnover by client size
SME
Total
Large
Injecting money into
companies
Picture: ALAMY
Businesses need
alternate ways
to access cash
A
NY review of economic data at
the moment will confirm that
the outlook for UK business
remains uncertain. That said,
there is still evidence that growth is on
the agenda for many businesses in
London and activity in the transactions
market is increasing. This includes inter-
est from both private equity and trade
buyers.
ALTERNATIVE FUNDING
The key challenge is how to fund these
opportunities. Many businesses com-
ment that bank lending remains restric-
tive, pricing high, with some funders
also requiring high levels of personal
security to support facilities. As further
capital requirements are placed on the
banking community, the likelihood is
that receivables financing and asset
based lending will continue to replace
overdraft and term debt lending. Some
of this additional lending will, no doubt,
be provided by non-bank owned funders
such as GE Capital and other independ-
ents in the market.
GE Capital is a provider of asset based
lending (ABL) facilities, which can be
used to meet a variety of funding
requirements. These include organic
growth opportunities; as well as transac-
tions such as management buy-outs
(MBO), management buy-ins (MBI), merg-
ers and acquisitions, re-finances, turn-
arounds and restructures.
RECEIVABLES FINANCING
Receivables financing or invoice dis-
counting is for most providers the core
component of an asset based lending
facility. The product provides a business
with a revolving funding line, secured
against the outstanding sales invoices
owed to that business by its customers at
any given point in time. Often, a busi-
nesses can expect to receive an advance
of up to 90 per cent of the value of their
outstanding invoices once the goods or
services have been dispatched to the cus-
tomer, with the remaining balance, less
charges, being paid upon receipt of
funds from the customer.
Flexibility is a key benefit of receiv-
ables financing. As the customers rev-
enues grow, the amount generated by
the facility may also increase in line with
the sales ledger. This moderates the
need for regular requests for increased
facilities. In addition, the facility is
revolving so it can potentially improve
the cash position of the business versus a
term debt structure where regular amor-
tising payments are required. This can be
of particular importance in structuring a
transaction, especially where a business
has not had a large debt burden in the
past.
Some funders, including GE Capital,
can provide facilities where the business
has large concentrations into one or two
key customers, or where a high degree of
funding against exports is required.
Funding can also be provided in many
currencies, thus providing a natural
hedge against purchases in a currency
other than sterling. Many also provide
credit protection against bad debts
which, in the current climate, is an
important factor to consider.
In addition to receivables, asset based
lenders like GE will also provide facilities
against other balance sheet assets such
as inventory, plant and machinery and
property. This enables the asset-based
lending (ABL) facility to compete with
traditional overdraft and term debt, and
in many cases provide significantly high-
er levels of funding.
For transactional opportunities, the
assets of the target company can be used
to generate all or part of the purchase
price.
BUILDING BUSINESS RELATIONS
Businesses recently seeking re-finance
with GE Capital have also identified the
importance of relationships. We are
more than just a finance provider; we
are also seeking long-term relationships
through our partnership approach.
Stability, flexibility and confidence from
a businesses funder are an important
part of decision making, as some certain-
ty is sought in an uncertain world.
We can expect to see ABL facilities
used as many companies begin to
restructure over the next 12 months,
some through mergers and acquisitions
and others through formal insolvency
processes, as debt structures created in
the boom years simply cannot be sus-
tained in what is otherwise a fundamen-
tally sound business.
GE Capital is seeing more businesses
turn to invoice finance and asset based
lending facilities as a real alternative to
the facilities traditionally provided by
bank owned funders. With more busi-
nesses coming to us with requests to
help support their growth aspirations, in
particular where existing working capi-
tal requirements are not being met by
current facilities.
We also see a number of businesses
who are no longer happy with their
existing financier relationships and are
seeking the different approach we give.
In the first six months of 2011 we have
completed deals with total funding
made available of 345m. As the econo-
my continues to improve, it is imperative
that alternative funding options are
open to businesses to help fulfill their
needs.
Alan Austin can be contacted at
alan.austin@ge.com.
Asset based lending is a fast, flexible and
cost-effective way to grow your company
It is impera-
tive that
alternative
funding
options are
open to
businesses to
help fulfill
their needs
29
CITYA.M. 16 SEPTEMBER 2011
ALAN AUSTIN
REGIONAL DIRECTOR, GE CAPITAL
GE Capital
From refinancing and restructuring to buy-outs and acquisitions, whether a small
domestic transaction or a large structured cross border transaction, we can help you
unlock the funding potential in your assets.
To see how GE Capital's ABL expertise can help companies make the most of their
opportunities, contact us on 0870 8500315 or visit www.gecapital.co.uk
Capital@work
Dawson International plc
CID, Inventory & Trade Finance
11 million
Refinance
UKN Group
CID
1.5 million
Refinance
IFB Ltd
CID
1 million
Refinance
Hewden Stuart Limited
CID, Inventory & Plant
& Machinery
25 million
Syndication
Sigma Plc
CID
40 million
Refinance
Fogarty (Filled Products) Limited
CID, Inventory, Trade Finance
& Plant & Machinery
9.5 million
Refinance
May-11 May-11 Jun-11
Jun-11 Mar-11 Mar-11
Speedy Hire Plc
Club
44 million
Refinance
Polestar Group
CID & Plant & Machinery
45 million
Acquisition
IAC Group
Pan European Receivables Financing
125 million
Structured Working
Capital Facility Jun-11 Apr-11 Feb-11
DAWSON I NT E RNAT I ONAL
In association with
Look beyond standard
borrowing options
Picture: GETTY
It is time to investigate your options
for financing your commercial needs
I
N THE current economic climate,
efficient cash flow management
must be at the top of the agenda for
UK small and medium enterprises
(SMEs). With the slowdown in the econo-
my and increasingly high inflation, cash-
flow suffers, as customers take longer to
pay their bills. But with wages to be paid,
rent to be met and essential suppliers
waiting for their cash, the challenge fac-
ing many is how to meet these demands
and make funds stretch further.
KEEPING THE MONEY FLOWING
But how can companies make sure diffi-
cult debtors dont become a stumbling
block in effective business management?
With cash flow the lifeblood of any busi-
ness, earning money is one thing, howev-
er getting paid can be quite another. In
difficult trading conditions, payment
terms are often expanded and everyone
has to wait longer to be paid.
One solution is invoice finance, also
known as sales finance. This can provide
businesses with cash while they wait for
payment from debtors. Invoice finance
enables a finance provider to advance
companies the money they need, using
the invoices raised as security, thereby
helping to ensure the business can con-
tinue to function and indeed invest in
the future.
In addition to invoice finance, asset
based lending enables businesses to
release some of the value of their invoic-
es and indeed other assets, such as stock,
plant, machinery and property, giving
use of the cash sooner rather than later.
Invoice finance enables further invest-
ment in the business or can fund
increased sales without the need to
worry about cash flow.
Invoice finance is readily accepted
today as a more dynamic form of raising
funds, and can be an ideal solution to
releasing the money needed to grow
your business. Because its based on the
level of invoices coming into the busi-
ness, the amount of funds available
grows as your business grows, so you
dont need to negotiate limits as you
would with a traditional overdraft. Its an
opportunity to raise funds for various
activities without using tangible security
because the invoices themselves act as
security.
SUPPORTING GROWTH
Besides the more obvious and pressing
needs of paying wages and suppliers,
invoice finance can also be used for ongo-
ing projects and can also help fund busi-
ness growth, including management
buy-outs (MBOs) and buy-ins (MBIs), turn-
arounds and acquisitions.
Also, because of the level of security
available from the invoices, this form of
funding may be able to release more cash
than a traditional funding method
would allow. Almost any business that
deals with other businesses, and invoices
them in arrears, can be considered.
However, there are some industries that
are not suitable for sales finance due to
the way they structure invoicing and pay-
ments. Its a solution that is particularly
suited to the manufacturing, transport,
wholesale and labour hire sectors, with
high values of invoicing outstanding.
Many businesses have limited assets,
but do have sizeable invoice debts owed.
With traditional funding, its often diffi-
cult to secure funding against this asset,
but invoice finance specialises in this
area.
Typical examples may be for succes-
sion planning purposes where a sum
needs to be paid to an outgoing director,
funds are required to invest in new
equipment or it may even be as part of a
deal to buy another company. The need
to access more cash tends to be driven by
outstanding business requirements,
sometimes a company may be growing
very quickly and it needs to take on more
staff or invest in larger premises.
GROWING ACCEPTANCE
These are undoubtedly challenging times
for everybody and we are seeing a real
trend towards customers choosing sales
finance products such as invoice financ-
ing, factoring and asset based lending.
Sales finance has long been a popular
form of funding for small businesses as a
temporary measure to overcome com-
mon obstacles, however, the current eco-
nomic conditions have led to increasing
numbers of businesses turning to sales
finance as a viable alternative to fulfill-
ing other business needs a clear sign of
its growing acceptance as an alternative
source of funding to conventional debt.
BE PROACTIVE
With considerable uncertainty still hang-
ing over the prospects for the UK econo-
my, it is important that businesses
change to stay alive. They need to make
sure that they periodically review their
situation, ensuring that their funding
plans take full advantage of what is avail-
able in the market today. With straight-
forward cashflow financing now harder
to access for many businesses, they need
to identify alternative funding strategies
that suit their circumstances.
Introducing advisers at an early stage to
discuss options works really well.
The range of professional advice avail-
able to management today has never
been wider, and it is essential before
options become too narrow to tap into
it. Accountants, lawyers, private equity
houses, restructuring specialists and
banks are eager to provide advice and go
over a businesses options. One of the
most frequently voiced concerns by
advisers is that they are often only called
in when its too late and options have
shrunk to a bare minimum.
As the economy recovers, businesses
are going to need access to working capi-
tal. If conventional lending is not avail-
able or appropriate, then other avenues
need to be explored. What will be critical
is flexible finance that works in sync
with the requirements of the business.
Forward thinking businesses that proper-
ly consider their financial needs and
match those needs with appropriate
funding will ultimately benefit.
Small and medium-sized businesses need to adapt to a changing world by weighing the options
to keep sufficient money flowing on time in these increasingly challenging business conditions
Business Features | Commercial Finance
30 CITYA.M. 16 SEPTEMBER 2011
JOHN BEVAN
HEAD OF TRADE AND WORKING CAPITAL, UK
AND IRELAND, BARCLAYS CORPORATE
LONDONS
TOP FASHION
HANGOUTS
L
ONDON Fashion Week kicks off
today and stores surrounding its
Somerset House are already stocking
up on Diet Coke and cigarettes in
preparation for the barrage of models,
fashion editors and buyers descending.
From today until next Wednesday, the
cobbles of the fabled house will be witness
tottering fashionistas and booming music
as designers collections for Spring 2012
are aired.
Londons fashion scene is hotter than
ever this year, thanks to a fresh wave of tal-
ent, high profile designers showing in the
capital and, of course, the Kate nee
Middleton the Duchess of Cambridge
effect which has seen London-based labels
Issa, Erdem, and Temperley get worldwide
fame. (Middleton follows Sam Cam and
Michelle Obama who have both regularly
been spotted wearing British creations.)
Entrance to shows is strictly ticket only,
but dont worry if you havent managed to
secure yours. A variety of shows are being
live streamed on London Fashion Weeks
official website (www.londonfashion-
week.co.uk). Burberry Prorsums show will
also be aired live on the Burberry website.
Shows today include Aussie label Sass &
Bide, and PPQ (beloved of Alexa Chung
and Fearne Cotton, among others.)
Tomorrow will see Vivienne Westwood,
Henry Holland, Jonathan Saunders (one of
Londons hottest designers currently) and
Middleton-favourite Issa, take centre stage.
On Sunday the most coveted ticket will
be for Tom Ford (the hot US designer is
making his catwalk debut in the capital
after launching his luxurious womens
wear label last year.) He joins Nicole Farhi,
and Richard Nicoll on the line-up.
Matthew Williamson, meanwhile, is set to
cause a splash by showing his clothes in
the giant Turbine Hall at the Tate Modern.
Mulberry is also staging a small presenta-
tion for its handbags and clothing at
Claridges Hotel. (Look out for Alexa
Chung!)
Monday is the biggest day of the week.
Christopher Kane, the hip Scot designer,
who also designs Versus collections for
Versace, is set to show. Middleton
favourites Temperley London and Erdem
the Canadian designer known for his
exquisite floral print dresses are set to
Lifestyle| Fashion & Reviews
32 CITYA.M. 16 SEPTEMBER 2011
GETTING
DRESSED
Q.
I am just back from a blissful
holiday in Greece. How do I
(tastefully) make the most of my
holiday glow back at the office?
A.
After perfecting your tan on the
beach its so frustrating to return
back to icy London. But however
tempting it may be, you must try to
restrain yourself from donning a floaty
summer dress with bare legs for your first
day back at work. With the worlds fash-
ion press in town for LFW, the
Autumn/Winter season is officially upon
us. You must embrace it or risk looking
plain desperate to flash your flesh. Black,
notoriously draining and aging, is best
worn with a holiday glow. Banish your hot
prints and clashing brights to the back of
the wardrobe this is the moment for the
classic LBD. We love designer YONGs
modern cuts with a Westwood edge. Your
sun kissed skin will also make the most of
this seasons new muted colour palette.
A pair of high-waisted 7/8th trousers in
a camel or dark olive revealing an inch of
ankle is just enough to allude to the
tanned legs encased within. Team with a
modest high-necked blouse layered under
this seasons must have shell top to
channel the minimalist mood that fill the
fashion pages after the holiday season is
at an end.
Q.
I love the idea of high heels but
find them uncomfortable. What
are the easiest ones to wear all
day long?
A.
Wedges are fabulous if youre not
used to wearing heels regularly as
they give you more support. If you
want something a bit more dainty, you
could also go for a stacked heel, meaning
a shoe with an internal wedge at the ball
of the foot, as this makes the angle of the
foot less extreme while still giving the illu-
sion of height.
Q A
London designers to strut
their stuff at Fashion Week
&
appear. The high point meanwhile, is set
to be Burberry Prorsums star-packed
show. (Previous attendees include Kate
Bosworth, Sarah Jessica Parker and
Victoria Beckham.)
Tuesday features young London design-
er Mary Katrantzou, Aquascutum and
High heels, glamour,
models: Lucie Greene
rounds up this weeks
catwalk highlights
Roksanda Ilincic.
The week will culminate on Wednesday
with a day celebrating Londons finest
mens wear talent, including collections
by E. Tautz, Mr. Start, Oliver Spencer, J.W.
Anderson, Aquascutum mens and
Topman Design. All you need to do now, is
prepare your strut.
Above, Somerset
House. Right, designs
by Roksanda Ilincic
and Jonathan
Saunders
CUT AT 45 PARK LANE
Cut at 45 Park Lane, the
brainchild of top iconic
Hollywood chef
Wolfgang Puck opens
this week at The
Dorchester Hotel, just in
time for shows, and is
already getting
Londons glitterati in a
quiver. Beg, borrow,
or steal to get a reservation.
www.45parklane.com
THE FUMOIR, CLARIDGES
Nestled discreetly in a
quiet corner of
Claridges is the
Fumoir bar, a chic,
dimly lit boite, per-
fect for an evening
cocktail and people
watching (Tom Ford
says its his
favourite London
watering hole.)
www.claridges.co.uk
THE BEAUFORT BAR
Just a hop, skip, and jump
from Somerset House
this chic atmospheric bar
at the newly renovated
Savoy Hotel is set to be
a fashionista hub this
season. Sip from its
extensive champagne-
by-the-glass menu
and take in the bars
stylish jet black and gold
interiors. www.thebeaufortbar.com
THE CONNAUGHT BAR, CONNAUGHT HOTEL
This sleek Art Deco
inspired cocktail spot is
a firm favourite with
the fashion pack during
shows, not least for its
outstanding martinis (a
bar tender will whip
you up the perfect ver-
sion on a dedicated
Martini trolley in
front of you.) Enjoy!
www.the-connaught.co.uk
Clare Rous &
Kara Iland
FOUNDERS OF ROUS
ILAND MEMBERS
BOUTIQUE
Above, the perfect black ensemble
Film
TINKER, TAILOR, SOLDIER, SPY
Cert: 12A
hhhhh
HAS there ever been a greater masterstroke
of casting than having Gary Oldman play
John Le Carres famous, and famously
understated, spy George Smiley? There
were surprises when the announcement
was made surely, people asked, Oldman is
a character actor, a quality player of sup-
porting roles and hammy villains, but hard-
ly a leading man? But of course, thats the
point with Smiley hes a shadow, a watch-
er, a quiet, calculating observer of others.
Hes neither an action man nor a lothario,
but the quintessential spy the man in the
background who happens to hold all the
cards.
Oldman is perfect casting and delivers a
perfect performance as the retired spook
recalled by MI6 to find the double agent. He
Art Exhibition
DEGAS AND THE BALLET
Royal Academy of Art
hhhhI
YOU may already know if you're likely to
want to see a large exhibition of drawings,
pastels and paintings of the ballet by bale-
ful Impressionist Edgar Degas. But to dis-
miss this exhibition as yet another retread
of familiar territory, or even as an infallible
moneyspinner for the RA, would be to miss
a thoughtful and rewarding show that
manages to please both the blockbuster fan
and the sceptic.
Everything you'd expect to see is here:
the exquisite drawings of young girls
stretching and posing, worked up into
shimmering pastels, off-kilter paintings
and crusty bronze figurines.
Contextualising the artists work with
the photographic innovations of his time,
the show makes a case for Degas as a proto-
filmmaker, whose willingness to push his
art into uncharted territory provides
respite from the familiar accusations of
misogyny in his work. Degas images are
really rarely of the ballet; instead, they
depict the rehearsal for the main event,
with all its aches and pains, and as such
reflect the stark realism of contemporary
writers such as Flaubert and Zola. Degas
penetrating eye for the human body under
strain forces you to look ever closer, too, at
the real pain beneath the ravishing surface.
Ben Street
delivers a master class in restraint, as does
the film itself which isnt to say thats its
ever anything less than thrillingly tense
and completely absorbing.
Following a pretty faithful line to Le
Carres magnificent book, the film draws
us into London at the height of the Cold
War. This is the dour, grey, menacing
London of the grim 1970s, though the film
also takes us to Soviet-era Budapest and
Istanbul.
The colour comes from the stupendous
cast of top-of-their-game Brits: Colin Firth,
Toby Jones, Ciaran Hinds among the sus-
pects; Benedict Cumberbatch the young
operative assisting Smiley; John Hurt the
disgraced spymaster who first suspected a
snake in the Circus (referring to MI6s
Cambridge Circus HQ); and Tom Hardy and
Mark Strong as other secret service opera-
tives.
Smiley must move between these people
and discover the truth, and hes followed as
he does so by the searching camera of direc-
tor Tomas Alfredson, who scored such an
atmospheric and cerebral hit with his
Swedish vampire film, Let the Right One In.
This is a nail-biting drama, one that
matches its literary inspiration for superi-
ority, intelligence, and sheer satisfaction.
And yes, there was the iconic TV adapta-
tion with Alec Guinness way back when;
but Oldman is even better than Guinness,
and this films even better than that
famous series. Those involved in it, Gary
Oldman in particular, should start clearing
some space on their shelves for some
awards. Timothy Barber
THE CHANGE-UP
Cert: 12A
hIIII
DESPITE its two likeable stars, this high-
concept bromance comes up very short.
Even the high-concept isnt original: two
diametrically opposite people wake up in
each others bodies and have to experience
and have to experience the world from the
other guys perspective. So far so
Freaky Friday.
Jason Bateman is Dave, the put-
upon, responsible daddy and hus-
band; Ryan Reynolds is Mitch, his
single, irresponsible, playboy buddy
whos constantly getting his
end away but is unfulfilled in
life. They go out drinking,
the pee in a magic foun-
tain, they wake up the
next day having magi-
cally swapped bodies.
Now Mitch must play at
being responsible and junk,
while Dave gets to remember what
its like to have gorgeous brain-
dead women fling themselves at
you. Cue entirely predictable
comic situations and even more
predicatble lessons eventually
being learnt.
There are poo jokes. There are
boobs. There is the stale air of des-
peration and plodding stupidity.
Rubbish.TB
With a splendid lead
performance from
Gary Oldman, this
spy thriller is destined
for awards glory
Below, Jason
Bateman in the
Change-Up.
Tinker, tailor, soldier, Oscar-winner
30 MINUTES OR LESS Action comedy with Jesse
Eisenberg and Danny McBride.
I DONT KNOW HOW SHE DOES IT SJP stars in this
film about a woman who juggles it all.
ATROCIOUS Properly scary Spanish horror, made in
the style of the Blair Witch Project.
FILM
PIRATES OF THE CARIBBEAN: ON STRANGER
TIDES Absolute tosh. End this please, Mr Depp.
STAR WARS: THE COMPLETE SAGA Blu-ray pack
of all the films. Only half of them worth it, obviously.
INSIDIOUS Supernatural chiller about a family
being haunted by demonic forces.
DVD
LAURA MARLING The critically-adored singers
new record is titled A Creature I Dont Know.
ED SHEERAN Eponymous dbut album from the
young singer-songwriter.
THE KOOKS Remember this rabble? Well, theyre
back with new collection Junk of the Heart.
MUSIC
RED ORCHESTRA TWO: HEROES OF STALINGRAD
(PC) First person shooter set in WWIIs bloody battle.
THE GUNSTRINGER (X360) Nutty Kinect game in
which you take the body of a gun-slinging puppet.
BLEACH: SOUL RESSURECCION (PS3) Spelling-
challenged action game.
GAMES
ALSO OUT THIS WEEK
FILMS, MUSIC, GAMES
33 CITYA.M. 16 SEPTEMBER 2011
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REEL HISTORY OF BRITAIN
BBC2, 6.30PM
Melvyn Bragg and the vintage mobile
cinema travel to Bristol Airport, where
he explores the rising popularity of
package holidays during the 1970s.
COMEDY SHOWCASE: THE FUN
POLICE CHANNEL4, 10.30PM
Sitcom following the working
practices of an incompetent health
and safety team after boss Neil has a
workplace accident.
THE BACHELOR
CHANNEL5, 10PM
Gavin Henson heads into the French
countryside on a camping trip with
two contestants, but only one spends
the night under canvas with him.
BBC1
SKY SPORTS 1
1.30pmLive International One-Day
Cricket 10pmTake It Like a Fan
10.30pmPremier League Preview
11pmFootball League Weekend
12amInternational One-Day
Cricket 2amTake It Like a Fan
2.30amPremier League Preview
3amFootball League Weekend
4am-6amInternational One-Day
Cricket
SKY SPORTS 2
7pmRoad to London 7.30pmLive
Super League 10pmNFL: Total
Access 11pmTight Lines 12am
Super League 1.30amCurrie Cup
Rugby Union 3.30amSuper League
5amTake It Like a Fan
5.30am-6amPremier League
Preview
SKY SPORTS 3
6pmLive Currie Cup Rugby Union
8pmLive PGA Tour Golf 11pm
Ladies European Tour Golf 12am
European Tour Golf 2amPGA Tour
Golf 5amPowerboating
5.30am-6amRoad to London
BRITISH EUROSPORT
2.50pmLive Davis Cup Tennis
7.15pmMotoGP 8.45pmTest
Cricket 10.45pmHorse Racing
Time 11.15pmShow Jumping
12amChampions Club
12.15am-12.35amGT Racing
5.25am-6amLive Test Cricket
ESPN
7pmGoal! 7.30pmLive Bundesliga
9.30pmFrench Top 14 Rugby
Union 11.15pmWRC: Access All
Areas 12.15amESPN MMA Live
12.45amESPN Kicks: Extra 1am
Live College Football 4amThis
Week in Baseball 4.30amUFC: The
Ultimate Fighter 5.30am-6amICC
Cricket World Magazine
SKY LIVING
7pmCriminal Minds 8pmDrop
Dead Diva 9pmMedium10pm
Jerry Bruckheimers Chase 11pm
Criminal Minds 12amBritain &
Irelands Next Top Model 1amCSI:
Crime Scene Investigation 2.40am
Maury 3.30amNothing to Declare
4.20amCharmed 5.10am-6am
Jerry Springer
BBC THREE
7pmDoctor Who 7.45pmDoctor
Who Confidential 8pmThe Real
Hustle: New Recruits 8.30pm
Worlds Craziest Fools 9pmLittle
Britain 9.30pmLee Nelsons Well
Good Show10pmEastEnders
10.30pmHim & Her 11pmFamily
Guy 11.45pmAmerican Dad!
12.30amLee Nelsons Well Good
Show1amWorlds Craziest Fools
1.30amLittle Britain 2amHim &
Her 2.30amThe Real Hustle: New
Recruits 3amDoctor Who 3.45am
Doctor Who Confidential 4am
Comedy @ The Fringe
4.30am-5.30amYoung Soldiers
E4
7pmHollyoaks 7.30pmHow I
Met Your Mother 8pmJo Frost:
Extreme Parental Guidance
9pmSupersize vs Superskinny
10pmEmbarrassing Bodies: Teen
Special 11pmComedy Lab: Rick
and Peter 11.35pmLittle Box of
Horrors 12.10amThe Big Bang
Theory 1.05amScrubs 2amHow I
Met Your Mother 2.25am
Embarrassing Bodies: Teen Special
3.20amReaper 4.05amGlee
4.50am-6amSwitched
HISTORY
7pmTerry Jones Great Map
Mystery 7.30pmHighlands 8pm
Storage Wars 9pmAmerican
Pickers 10pmAncient Aliens 11pm
Holy Grail in America 1amThe True
Story 2amHow Britain Was Built
3amTerry Jones Great Map
Mystery 3.30amHighlands 4am
Pawn Stars 4.30amStorage Wars
5am-6amAncient Discoveries
DISCOVERY
7pmMythbusters 9pmWeird or
What? 10pmMan, Woman, Wild
11pmGold Rush 12amBear Grylls:
Born Survivor 1amWeird or
What? 2amMan, Woman, Wild
3amDeadliest Catch 3.50amClash
of the Dinosaurs 4.40amNasas
Greatest Missions 5.30am-6am
Destroyed in Seconds
DISCOVERY HOME &
HEALTH
7pmPortland Babies 8pm19 Kids
and Counting 9pmSupernanny
10pmLittle People, Big World
11pmKids Hospital 12am
Supernanny 1amLittle People, Big
World 2amKids Hospital 3am19
Kids and Counting 4amA Baby
Story 5amBaby Days
5.30am-6amBabys Room
SKY1
7pmThe Simpsons 8pmFuturama
9pmThe Simpsons 10pmTrollied
10.30pmMount Pleasant 11.30pm
Brit Cops 12.30amBig Trouble in
Thailand 2.20amDom Jolys Happy
Hour 3.10amLaw & Order 4.45am
Its Me or the Dog 5.35am-6am
Oops TV
BBC2 ITV1 CHANNEL4 CHANNEL5
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6pmBBC News
6.30pmBBC London News
7pmThe One Show: BBC News
8pmEastEnders
8.30pmCelebrity MasterChef
9pmOutnumbered
9.30pmWould I Lie to You?
10pmBBC News
10.25pmRegional News
10.35pmCome Fly with Me
11.05pmMrs Browns Boys
11.35pmThe National Lottery
Friday Night Draws 11.45pmFILM
Masquerade. 1988; Weatherview
1.20amSign Zone: Question Time
2.20amMonty Halls Great Irish
Escape 3.20amThe Code
4.20am-6amBBC News
6pmEggheads
6.30pmCHOICE Reel History
of Britain
7pmLive Athletics: The
Memorial Van Damme.
9pmDigging for Britain: An
insight in the Viking Age.
10pmQI: With Jack Dee, David
Mitchell, Bill Bailey and Alan
Davies.
10.30pmNewsnight: Weather
11.05pmThe Secret World of
Whitehall
12.05amFILMThe
Draughtsmans Contract. 1982.
1.45amBBC News 4.20am-6am
Close
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmCoronation Street
8pmLove Your Garden
8.30pmCoronation Street
9pmDCI Banks
10pmITV News at Ten
10.30pmLondon News
10.35pmThe Walton
Sextuplets: Moving On
11.35pmRugby World Cup
Highlights
12.20amThe Zone; ITV News
Headlines 2.20amFILMOutland.
1981. 4.15am-6.40amLive Rugby
World Cup
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.30pm4thought.tv
7.35pmRare Chicken Rescue
8pmCome Dine with Me
9pmThe Million Pound Drop
Live
10.30pmCHOICE Comedy
Showcase: The Fun Police
11.05pmFILMEnd of Days:
Supernatural thriller. 1999.
1.20amMy Name Is Earl 2.05am
The Real Housewives of New Jersey
2.55amSmallville 3.40amHill
Street Blues 4.35amCountdown
5.20am-6.15amCookery School
6pmHome and Away
6.25pmOK! TV
7pm5 News at 7
7.30pmPawn Stars: 5 News
Update
8pmThe Gadget Show: 5
News at 9
9pmBig Brother: The Eviction
10pmCHOICE The Bachelor 11pm
Big Brother: The Eviction Interview
11.30pmBig Brothers Bit on the
Side 12.15amOne-Day
International Cricket 1.10am
SuperCasino 4.05amMotorsport
4.30amNicks Quest 4.55am
Rough Guide to Short Breaks 5am
County Secrets 5.10amWildlife
SOS 5.35am-6amHouse Doctor
1 2 3 4 5
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10 11 12
13 14
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4
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 Emphasise (6)
6 Small recess opening
of a larger room (6)
7 Something done (6)
8 Charge falsely or with
malicious intent (6)
10 Candle light (5)
13 Physical discomfort
or illness (7)
16 Soup-serving spoon (5)
18 Borne on the water (6)
20 Give a prompt (6)
21 Rough shelter at the
side of a house (4-2)
22 Performer who
moves to music (6)
DOWN
1 Outerwear garment (5)
2 Brain-teaser (6)
3 Grains on the beach (4)
4 Situated (7)
5 Native American
tent (5)
9 Extremely wicked (4)
11 Dental ller (7)
12 Island associated
with Napoleon (4)
14 Fish which travels up
a river to spawn (6)
15 Leaf which adorns the
Canadian ag (5)
17 Tree which produces
berries in autumn (5)
19 Stepped (4)
I
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4

4

B O S N I A I B
I U L A N D A U
T I N G L E S B
C L A C C U S E R
H A I K U R L
Y T O D D L E R W
B N A R E N A
R O S T R U M C S
G I L A V I S H
R E C K O N P E
Y I A C C E S S
7 9 8 4 9 7
7 3 8 4 9 1 5 6 2
9 1 4 2 1 5 3
5 2 4 2 8 1
8 4 7 9 6 5 9 6
9 8 2 1
1 7 5 2 1 3 4 7
2 8 1 3 2 6
7 9 6 8 4 3 9
4 6 2 9 3 5 7 1 8
3 1 2 7 9 6
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
PERISCOPE
Lifestyle | TV&Games
CITYA.M. 16 SEPTEMBER 2011 34
I
T has been an incredible start to the
Premier League season for
Manchester United with four straight
wins, 18 goals scored and only three
conceded. They bounced back to earth
slightly against Benfica on Wednesday
night, but the 1-1 draw wasnt a bad result
and they have been unstoppable at Old
Trafford recently.
The champions have won their last 17 in
a row at home, with 13 HT/FT victories,
and Chelsea are going to have their work
cut out if they are going to take anything
away from this game.
Andre Villas-Boas has made a steady
start to his managerial career at Stamford
Bridge, although it has to be said that his
team have had an easy opening run of fix-
tures. The Blues sit just two points behind
United in the table, but they havent
looked nearly as impressive as the Red
Devils or Manchester City so far. It is never
wise to write off Chelsea, though, and
their squad is packed full of talent.
The Blues struggled on the road against
the best teams last season, losing four of
their five outings at top-six finishers, and
they will be worried that the home side
has won four of the last five league meet-
ings between these clubs. They are general
7/2 shots, but I cant see past another
home victory and that should be backed
at 17/20 with Paddy Power.
There is an argument to take the 2/1
available with Ladbrokes about the HT / FT
win, as United achieved this in all five
home games against top-six finishers last
season. However, Ill stick with the out-
right victory and also have a small bet on
the 1-0 scoreline at 13/2 with the Magic
Sign. That may seem strange seeing as
seven of these teams eight league match-
es so far this campaign have produced
three or more goals, but I can see Villas-
Boas trying to keep things tight and frus-
trate United.
There have been quite a few 2-1 victories
in league meetings between these two in
recent seasons, but there have also been
plenty of low scoring contests and the
goals could well dry up for United on
Sunday.
Fernando Torres is yet to hit form for
Chelsea, while Florent Malouda has adopt-
ed a more defensive midfield role due to
the absent Michael Essien. It could prove
to be a very tactical contest and spread
bettors are advised to sell goals at 2.6 with
Sporting Index.
SUNDAY 4.00PM SKY SPORTS
CHELSEA
MANCHESTER UNITED
POINTERS...
Manchester United at 17/20 with Paddy Power
Manchester United 1-0 at 13/2 with Ladbrokes
Sell total match goals at 2.6 with Sporting Index
Home advantage should
give champions the edge
B
Y shifting into second gear in the sec-
ond half against the Italians last
week, Australia are the only one of
the fancied teams to really impress
in the early stages of the Rugby World Cup.
With a handful of exceptions, a feature
of the tournament has been the small win-
ning margins and the few handicaps that
have been beaten. The Wallabies are given
an 11-point handicap with Paddy Power for
their match against Ireland, the pick of the
weekend, but based on performances in
the sides respective openers, Australia
should overcome that mark.
If they have a weakness, it is the lack of a
world class kicker but that proved to be no
hindrance last weekend, and besides, their
game is not built around forcing penalties
inside 40 metres and mopping up the
place-kicking points. With the talented
backs at his disposal, adopted Aussie
Robbie Deans is not short of try scoring
potential in his side.
Sub James OConnor impressed with a try
against Italy, while Will Genia and Quade
Cooper were dependable in the halfback
positions. The Aussies prefer the running
game and few runners are as dangerous as
fullback Kurtley Beale. He came close
against Italy and buying his try minutes at
13 with Sporting Index is worth a crack.
After one tough encounter for the for-
wards against Argentina last Saturday,
Englands scrum faces another brutal con-
test against Georgia on Sunday. Other than
winning when they really shouldnt have,
England did nothing to suggest they will
reach their third consecutive final.
However, the Red Rose should not be
underestimated based on one poor per-
formance and against the Eastern
European minnows, it is certainly more a
question of by how many? rather than
win or lose?
The answer to that is not enough to sat-
isfy the handicap. Georgia are a profes-
sional, well-organised outfit and we
shouldnt expect a winning margin of any-
where near the 78 points that England
won by in the 2003 World Cup. Englands
handicap of 38 points offered by Ladbrokes
is equivalent to more than five converted
tries and that is a tall order.
POINTERS...
Australia (-11) at EVS with Paddy Power
Buy Kurtley Beales try minutes at 13 with
Sporting Index
Georgia (+38) at 10/11 with Ladbrokes
T
HE William Hill Ayr Gold Cup
(3.20pm) is always one of the most
competitive handicaps of the season
and tomorrows race looks fiendishly
difficult. The last 14 winners have returned
double figure prices, so it certainly hasnt
been a great race for punters.
It is impossible to know at this stage
where the best draw is, so Im going to back
one on each side. The Irish have plundered
some big prizes on these shores in recent
weeks and CROISULTAN is worth backing at
16/1 with the sponsors from stall seven. He
finished an excellent third behind
Bewitched and Definightly on Sunday and
six furlongs on soft ground is perfect.
Im also going to give one last chance to
my old friend REGAL PARADE at a massive
25/1. He is housed right against the stands
rail in stall 27 and although he has been
disappointing this season, he hasnt had
his ideal conditions. He could simply be
much better than this lot on soft ground.
Trainer David Nicholls has had a poor cam-
paign by his high standards, but he has
won this race six times in the past 11 years
and normally runs five or six. It could
therefore be a significant pointer that he
only relies on the selection and Tajneed.
Theres some decent action at Newbury
tomorrow and CASPAR NETSCHER is going
to be very difficult to beat in the Mill Reef
Stakes (2.30pm). He likes to get his toe in
and it does look a weak Group Two. Sir
Michael Stoute has ruled out the
Cambridgeshire for LABARINTO, but he
should be too strong for the opposition in
the Dubai Duty Free Handicap at 3.05pm.
I strongly fancy COURAGEOUS to get back
to winning ways this afternoon in Ayrs
3.20pm, while dont miss Richard
Hannons THREE AM TOUR in the big Sales
race at Fairyhouse on Sunday (3.45pm). She
is very well regarded at home and it doesnt
look the hottest of races.
P
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FOOTBALL TRADER BEN CLEMINSON HAS TEAMED UP WITH
FORM LABS TO BRING YOU THE CITY AM FOOTBALL TRADER
Punter| Sport
35
RUGBY TRADER DAVID WILD PREVIEWS THIS WEEKENDS BIG RUGBY GAMES
RACING TRADER BILL ESDAILE LOOKS AT THE WEEKENDS BEST RACING BETS
KEY changes to the way English foot-
ball is run will be in place by the start
of next season even if it means gov-
ernment having to enforce them, MPs
believe.
The Commons Culture, Media and
Sport Committee is waiting on the
Cabinets response to six major rec-
ommendations made in its July
report. It has argued that all clubs
should be licensed on an annual
basis, as part of measures designed to
ensure they are run solvently and
transparently.
The report also insists the Football
Association be overhauled and that
the so-called Fit and Proper Person
ownership rules are tightened.
Conservative MP Damian Collins, a
member of the select committee and
campaigner for better governance in
the game, said he had received assur-
ances from Sport Minister Hugh
Robertson. The minister was very
clear that there would be legislation
if there wasnt action, Collins told
City A.M. yesterday at the Future of the
Governance of English Football con-
ference in London.
The government will give its
response, I imagine around the end of
this month, and then throw the chal-
lenge down to the football authorities
to respond. And if they dont, then
they will say We will introduce
change by legislation. Thats what
the minister was very clear on.
What is crucial is that there is a
timetable behind it as well. We have
go to be clear the football authorities
have to respond within a limited peri-
od of time. I think setting an objec-
tive of having changes in place by the
start of the 2012-13 season would be a
target to aim for.
Therese Coffey MP, also a member
of the select committee, added:
Clubs will just have to live with the
changes.
Results
TOTTENHAM manager Harry
Redknapp was full of pride as his
makeshift side clung on to claim a
point amid the intimidating atmos-
phere inside PAOK Salonikas
Toumba Stadium.
With a view to Sundays Premier
League showdown against fellow
Champions League aspirants
Liverpool, Redknapp made 10
changes to his side, giving Yago
Falque, Harry Kane and Andros
Townsend a chance to impress.
The trio repaid their manager
with mature performances, but pari-
ty was only maintained thanks to
the agility of their 38-year-old goal-
keeper Carlo Cudicini, who made a
series of athletic saves late on.
Spurs were also handed a first-half
reprieve went PAOK left-back Lino
pulled a retaken penalty wide, hav-
ing comprehensively beaten
Cudicini with his first effort, but
Redknapp claimed his side, which
had an average age of 23, was deserv-
ing of significant praise.
I was pleased with performance,
particularly in the first half. We kept
the ball well, Redknapp said. That
was an intimidating atmosphere out
there tonight. It was fantastic. You
dont get that in many places in the
world.
The fans were incredible and they
get behind their team. The young
players have never seen that before
and it must have been a difficult
experience for them, but I thought
they coped very well.
While the young players like Tom
Carroll, Falque and Townsend
impressed, the top performer on the
night was Cudicini.
He was booked for the foul which
presented PAOK with the best chance
of the game from the penalty spot,
but Redknapp says the former
Chelsea stopper thought he was hard
done by.
He said: Did Carlo foul him? He
swears he never touched him. Carlo
Cudicini says he didnt touch him.
Redknapp had intended to start
former No1 Heurelho Gomes instead
of the Italian but revealed a last-
minute change of mind was behind
his decision to leave out the want-
away Brazilian.
He said: I just changed my mind. I
thought it would be better for Carlo
tonight and Gomes to play at Stoke
in the Carling Cup next Tuesday.
Young Spurs
pass a test
of character
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email sport@cityam.com
Sport 36 CITYA.M. 16 SEPTEMBER 2011
FULHAM manager Martin Jol rued his
sides failure to make the most of
their chances as they were held to a
frustrating draw by FC Twente in
their opening Europa League Group
K clash at Craven Cottage.
Andrew Johnson took advantage of
a defensive error to put the Cottagers
in front after 19 minutes but despite
much pressure they could not add a
second, and Luuk de Jongs header
bounced against the post and in off
goalkeeper Mark Schwarzer for a 41st-
minute equaliser.
Jol said: In the first half we
should have been two or
three up. Of course
theyre a good team
but when you put
them under that
sort of pressure
you should be win-
ning.
We still wanted
to play with four for-
ward players but if you dont
put the goals away you get
frustrated and put pressure on
yourself. The only thing now is
that we have to put the chances
away.
Goalscorer Johnson (left) also
underlined his disappointment at
failing to bag the points but said
the draw would stand his side in
good stead for the remainder of
the group campaign.
He said: We started well
and played well enough to
come away with the
points so I think were dis-
appointed, but its a long
slog and to get a point
early on is pleasing. I
missed out on being in
the final two years ago so
Im delighted to be fit now
and scoring.
Jol frustrated by missed opportunities
SPORT | IN BRIEF
Dane Rasmussen sacked
CYCLING: Alex Rasmussen, four-time
track cycling world champion, has been
sacked by HTC-Highroad after missing a
doping test. The Dane, 27, has also had
his racing licence suspended by the
Danish Cycling Union. He will miss the
upcoming road world championships in
Copenhagen, where he was due to com-
pete in the time trial.
GB&I open first-day lead
GOLF: Great Britain and Ireland have
taken a commanding 4-1 lead over
Continental Europe after the opening day
fourballs at the Seve Trophy in France.
Scott Jamieson and Ross Fisher led the
way with a 6&4 victory, while Robert
Rock and Ian Poulter were 5&3 winners.
Anders Hansen and Francesco Molinari
were Europes only victorious pairing.
Murray set to face part-timer
TENNIS: Andy Murray will go from play-
ing Rafael Nadal to taking on a student
without a world ranking in Great Britains
Davis Cup clash against Hungary today.
Six days after losing in the semi-finals of
the US Open, Murray will meet Sebo Kiss
at Braehead Arena, Glasgow. Kiss, 27,
achieved a career-high ranking of 531st
in 2005, but now fits tennis around his
law studies.
Fifa reject Bin Hammam appeal
FOOTBALL: Mohamed bin Hammam will
take his case against a lifetime ban from
football to the Court of Arbitration for
Sport after Fifa rejected his initial appeal.
Fifa banned Bin Hammam, 62, after find-
ing him guilty of bribing Caribbean voters
with $40,000 to back his later aban-
doned campaign to become president.
1
1
FULHAM
FC TWENTE
Stoke denied by
late Kiev strike
STOKE were prevented from making a
winning start to their Europa League
Group E campaign by Dynamo Kievs
late equaliser. The Potters took the
lead 10 minutes into the second half
through Cameron Jerome, but Ognjen
Vukojevic made it 1-1 in stoppage time.
Birmingham, meanwhile, were beaten
3-1 at home by last years runners-up
Braga and Celtic lost 2-0 away against
Atletico Madrid.
BY JAMES GOLDMAN
FOOTBALL

0
0
PAOK SALONIKA
TOTTENHAM
Government ready to enforce football overhaul
BY FRANK DALLERES
BUSINESS OF SPORT

Kane was part of

Spurs side with an
average age of 23
Picture: ACTION
IMAGES
FOOTBALL

Indian summer
to end on a high
note, vows Cook
ENGLAND captain Alastair Cook is
determined to ensure his first sum-
mer as the skipper of the one-day side
ends on a high in Cardiff today.
A rain-affected tie at Lords last
week saw England clinch the series
against world champions India and,
coupled with the victory over Sri
Lanka a month earlier, Cook can
rightly feel confident that under his
stewardship the team is moving in
the right direction.
But the Essex left-hander, whose
own form has been an uplifting
aspect of Englands recent progres-
sion, wants to ensure his side contin-
ue their momentum and send the
deflated tourists home having failed
to register a victory in any format of
the game.
Its been a good start, and Im very
happy with the way the lads have
taken to me as captain and bought
into the ideas, he said. Im very
happy with winning both series. We
know how tough its going to be in
the next two months [in a return
series in India], but this side has
always responded well to challenges.
The injection of youth in the form
of Jade Dernbach, Ben Stokes and the
reinstatement of Craig Kieswetter has
given the squad a lift and Cook is con-
fident there is more to come from his
young team.
He said: We are a very young side
trying to make progress. The exciting
thing is I dont think weve played as
well as we can.
We have been put under pressure
in this series, but have still won the
games. That is very encouraging.
Were going to have to play at the top
of our game to try to finish the sum-
mer on a high as a one-day team.
Stokes, meanwhile, will miss
todays match in Cardiff with a finger
injury. Uncapped Yorkshire opener
Jonny Bairstow and Somersets Jos
Buttler, who made his Twenty20
debut last month against India, have
been called up.
BY JAMES GOLDMAN
CRICKET

HISTORY BOYS: LANCASHIRE END 77-YEAR WAIT

LANCASHIRE pipped Warwickshire to the County Championship title with victory over
Somerset at Taunton on a dramatic final day. Openers Stephen Moore and Paul Horton
made 71 and 55 respectively as the Red Rose county, needing 211 to win in a minimum
of just 28 overs to claim their first county title since 1934, reached 213 for two to triumph
by eight wickets. Picture: ACTION IMAGES
Sport
37 CITYA.M. 16 SEPTEMBER 2011
BRITAINS Mark Cavendish suffered a
rare sprint defeat to his HTC-
Highroad team-mate Mark Renshaw
in yesterdays fifth stage of the Tour
of Britain.
It means Cavendish lies 34 seconds
behind overall leader Lars Boom of
Rabobank, ahead of Sundays climax
to the race in central London.
But with stages today and tomor-
row, before two separate parts to the
finale in the capital, there is more
than ample time for the Manxman to
catch up.
An initial breakaway soon faltered
on a testing, hill-packed, 111 mile-
stage from Exeter to Exmouth.
Frenchman Damien Gaudin of
Team Europcar the tried to pull clear
as the course approached its conclu-
sion.
However he too was reeled in, and
with less than two miles left the lead-
ing pack manoeuvred Cavendish and
Renshaw to the front.
The colleagues went head-to-head
in the final push for the line, with
Australian Renshaw just pipping the
Tour de France green jersey winner.
Sundays stage in London incorpo-
rates an individual time trial and a
circuit race, which starts and finishes
on Whitehall.
Cavendish loses
team-mate duel
with Renshaw
BY FRANK DALLERES
CYCLING

England shuffle the

ENGLAND manager Martin Johnson
will ring the changes ahead of
Sundays clash with Georgia in an
attempt to inject some fresh impetus
into his sides World Cup campaign.
The Red Rose were flat and lacking
in imagination as they were drawn
into an arm wrestle by a canny
Argentina side in last weekends dour
13-9 win over the Pumas.
It was a performance far
removed from their display
against Australia in last autumns
Test at Twickenham, which show-
cased an expansive brand of rugby
that triggered a new wave of
optimism amongst England
fans.
And in a bid to
restore that feel-
good factor
Johnson has rein-
stated the nine-
ten axis of Ben
Youngs and
Toby Flood,
whose excit-
ing partner-
ship played
a key role in
e n s u r i n g
E n g l a n d
ended an
eight-year wait
to win the Six
Nations earlier
this year.
Flood was Johnsons preferred
option at fly-half throughout the Six
Nations campaign, but a loss of form
towards the end of last season with
his club Leicester culminated in him
losing his place to Jonny Wilkinson
for the World Cup warm-up matches
against Wales and Ireland.
Wilkinson hardly did much to jus-
tify his managers faith against
Argentina with an uncharacteristical-
ly wayward kicking performance,
and Flood will now have the chance
to stake a claim for the shirt against
minnows Georgia tomorrow.
It was really frustrating not to be
part of the first win but you get over
it pretty quickly and realise its a mas-
sive squad effort, Flood said.
All I can do is go out there
and try to prove them wrong
on the decision theyre mak-
ing.
Kiwi-born Shontayne
Hape will get the chance to
impress in new-look midfield
alongside Manu Tuilagi,
who will hope he has more
opportunities to
impress with ball in
hand than he did
last week.
Johnson will
also go with a
completely fresh
front row, set to
include Matt
Stevens and
A l e x
Cor bi s i er o,
while skipper
Lewis Moody
will return to
instil some
passion and
energy .
ENGLANDS management team
have launched a vehement defence
of skipper Mike Tindall and several
of his team-mates who embarked on
a night out in Queenstown follow-
ing last Saturdays win over
Argentina.
Tindall, who led the side in the
absence of the injured Lewis Moody,
and a group of players, including
Dan Cole and Steve Thompson, visit-
ed a number of local bars having
been granted the day off following
their underwhelming 13-9 win over
the Pumas.
But an England spokesman has
been quick to play down the story
and, in a statement issued by the
RFU, insisted there was nothing
untoward about the conduct or
behaviour of any of the
players.
The statement read:
Mike and several of the
players were enjoying an
evening out after he had
led the team to a hard-
earned victory over
Argentina.
Like all the
lads he plays
for England
with a mas-
sive amount
of passion
and he was
r el axi ng
after a
t o u g h
match.
Before
t h e
s q u a d
depart-
ed for New Zealand, manager
Martin Johnson revealed he
would not be ruling with an
iron fist and impose a strict
alcohol ban on his players.
When I started playing rugby
at senior level you were
dealing with blokes,
said the former
World Cup win-
ning captain
last month.
T h e y
treated us
l i k e
a d u l t s
a n d
there is
no rea-
son to
change
t h a t
n o w
t h e y
are professionals and things are far
more organised in the game.
They are there to make sensible
decisions if I cant trust them,
there is a simple choice for us to
make.
Tindall (left), who last month
married the Queens granddaugh-
ter Zarah Phillips, is reported to
have been one of the players to have
attended a bar which was hosting a
Mad Midget Weekender event but
the venues manager, Rich Deane,
defended the conduct of the play-
ers on social networking site
Facebook.
He wrote: Firstly: There was no
dwarf throwing thats just not
cool! Secondly: There was no scandal
by any of the English rugby players
that we saw!
They were great lads, not throw-
ing the midgets, it was all light-
hearted good-humoured fun!
No punishment for Tindall and co after night out
Sport
38
1998: After the 1988 Calcutta Cup
match against Scotland Dean Richards
and John Jeffrey embarked on a drinking
session in Edinburgh and eventually
ended up using the Cup as a makeshift
football, causing thousands of pounds
worth of damage.
2008: Two days before he was due to
make his England debut against Scotland,
Danny Cipriani was photographed leaving
a nightclub and was axed from the squad
for inappropriate behaviour.
2008: Topsy Ojo and Mike Brown were
fined after being found guilty of miscon-
duct on a tour of New Zealand. They and
two other players were at the centre of
sex allegations.
BAD BOYS | ENGLANDS ROLL OF DISHONOUR
THE BREAKDOWN |
WORLD CUP BRIEFS
EAGLES TAKE FLIGHT
The USA ensured there was no
historic World Cup debut for
Russia as the Eagles edged a
tight Pool C encounter 13-6. The
Russians, the 25th team to take
part in the World Cup got on the
scoreboard thanks to penalties
from Yury Kushnarev and
Konstantin Rachkov. But Chris
Wyles responded with eight
points for America and Mike
Petri scored the only try.
COOPER HITS BACK
Australias fly-half sensation
Quade Cooper is adamant he has
no problem with the ongoing crit-
icism surrounding his demeanour
on the field. Australias World
Cup hopes have been largely
pinned on the flamboyant No10
but he is a far from universally
popular character. The 23-year-
old was described as a boof-
head by Aussie legend Nick
Farr-Jones and is public enemy
No1 in New Zealand after becom-
ing involved in an ongoing feud
with All Black skipper Richie
McCaw. "I looked at Nicks com-
ments in a positive
manner, said
Cooper ahead
of tomor-
rows Pool A
clash against
Ireland.
Nicks
already said
well be in the
final against the All
Blacks so in his eyes were a lot
better than we are. I dont care
[if Im not liked in New Zealand.
BOTHA RETURNS FOR BOKS
World champions South Africa
have been handed a significant
boost with the news that experi-
enced lock Bakkies Botha will
return the side for tomorrows
Pool D encounter against Fiji.
Botha is one of six changes to a
Springboks side who are without
Victor Matfield, Butch James,
Bryan Habana and Jean de Villiers
through injury. The 31-year-old
missed the reigning champions'
17-16 opening win over Wales
with an Achilles injury.

Johnson freshens up his side to face Georgia

Flood keen to make most of fresh opportunity

Captain Moody makes comeback after knee injury

BY JAMES GOLDMAN
RUGBY UNION

BY JAMES GOLDMAN
RUGBY UNION

ENGLAND
GEORGIA
39
REDKNAPPS SPURS KIDS
PROVE UP TO THE MARK
TOTTENHAM START EUROPA
LEAGUE WITH A DRAW: P36

pack
2003 World Cup winning spirit
was built on squad socialising
E
NGLAND players made the
headlines this week but not for
the reasons they would have
wanted, after pictures surfaced
of them in a bar celebrating last
weekends win over Argentina.
Much has been made of the inci-
dent, which took place on a designat-
ed day off that followed the opening
match, and questions have been
raised about the suitability of the
players conduct.
Now, I am not condoning people
going out and going crazy, but I think
on this occasion matters have been
blown out of proportion. For all we
know, some of the players who hap-
pen to have been pictured might not
have been drinking.
Players are smart enough to know
not to drink so much after a game
that it will affect them by the time
the next fixture comes around.
If they were out drinking the fol-
lowing night, and the following
night then there might be just cause
for concern but that has not been
the case and I do not think this is
worth the fuss.
When we were at the World Cup in
Australia in 2003 we players went out
and socialised in between matches.
Because there were no cameras there,
no-one made a big deal out of it.
However, it was absolutely vital in
maintaining a strong bond within
the squad, and that was ultimately a
major factor in helping us come back
to England with the Webb Ellis
Trophy in our hands.
There has also been some debate
about the wisdom of Martin Johnson
allowing his players to take part in
extreme sports such as bungee jump-
ing and white-water rafting in
between games.
Again, I cannot see the problem. It
would be mad to go to New Zealand
and not try these things and Im
sure the places they went to were
ones with excellent safety records. It
is important for the squad to relax
and get away from the pressure of a
six-week tournament. Squad activi-
ties are a key part of this and any-
one who thinks that is a problem
needs their head examined.
World Cup winner Kyran Bracken
(@kyranbracken) was speaking courtesy of
GamePlan Solutions: managing high pro-
file and popular sport stars; speakers, lead-
ers, motivators and ambassadors
www.gameplansolutions.co.uk
Visit www.welbeckgroup.co.uk
Email: marketing@welbeckgroup.com
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Bespoke Financial Advice
I
TS an exciting time at London Scottish.
Were two games into our RFU
Championship season, and having won
one and lost one, we are under no illu-
sions this will be a very competitive league.
Whereas over the last few years, London
Scottish have risen up the leagues relatively
steadily (even though it did take a last
minute try by David Howells to gain promo-
tion last season), the sides we will be facing
on a weekly basis are very big names in the
rugby world.
We know were going to have to play some
really good rugby on a weekly basis to win
games in this league, and we did just that in
our opening game against Rotherham.
Our opposition this Saturday at 2pm,
Cornish Pirates, who narrowly lost out to
Worcester in last years Championship final
will be no exception. We expect the
Richmond Athletic Ground to be very busy
for the game, and were hoping for a great
game between two sides who like to play
with pace. The beauty of the Championship
is that all clubs have a very passionate sup-
port, so each game has a great atmosphere.
FEROCIOUS
In my few spare moments Ive been able to
catch the Rugby World Cup. Its coincided
quite nicely with the birth of my new baby
daughter, Molly, and Ive been able to watch
during the early morning feeding sessions!
Its been a really interesting start. What
youve seen are second-tier Nations such as
Japan, Georgia and Romania showing the
gap has closed with top-tier nations.
Argentinas inclusion in the Tri-Nations and
their third place at the last World Cup show
they are one of the top nations and repre-
sented a tough opening test for England.
Ive played against the Pumas a number of
times on the Sevens circuit and as a nation,
they have always been ferocious at the
breakdown as we saw against England. So
for England to get the win, even though the
performance was not what they aspire to,
was critical and gives them a starting point
to build on for the rest of the World Cup.
The same can be said for Scotlands open-
ing fixtures. They have two wins on the
board without playing particularly well
against two smaller nations in Georgia and
Romania, but theyll now see Argentina and
England as huge games that they have a real
chance of winning. It will be fascinating to
see how this pool in particular ends up.
Simon Amor is Head Coach at London Scottish.
Their next fixture is at home on Saturday 17th
September against Cornish Pirates.
Thrills and spills home and away
RUGBY UNION COMMENT
SIMON AMOR
RUGBY WORLD CUP COMMENT
KYRAN BRACKEN
Team spirit was
vital to the 2003
World Cup win
Picture: ACTION
IMAGES
Cut loose against
Georgia, Johnson
MARTIN JOHNSON is absolutely right
to make big changes for England sec-
ond World Cup match, against Georgia
on Sunday.
A few players like Lewis Moody,
Ben Youngs and Simon Shaw need
to get their feet wet, to get some
game time under their belts.
Others like Matt Stevens and Toby
Flood are pushing to show they are
worth a starting place.
The pool stage is about getting the
balance right in the team, so its essen-
tial to tinker a bit, and Martin will be
looking to see who is sharp.
I just hope Johnson has taken
something away tactically from the
narrow win over Argentina.
You should never adopt a strategy
that plays to your opponents
strengths. Instead we should have
sped up the game and taken them on
more and I really hope we do that
against Georgia.
One player who can do that is
Youngs, who I have worked with
extensively. He really adds something,
can break the line, force play out wide
and change the game.
Minnows making
the biggest splash
WHILE none of the big four or five
teams may have played well enough
yet to feel comfortable, other teams
have excelled themselves.
Japan, USA and most of the so-
called smaller sides have impressed
me, Scotland had to work against
Romania and there have been none of
the cricket scores I expected.
Flood, Moody
and Hape are set
to start against
Georgia
Pictures: ACTION
IMAGES
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