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Mouchel
chair quits
after just
four days
STRUGGLING infrastructure group
Mouchel was plunged into further
chaos last night after its interim chair-
man quit after barely four days in the
job.
David Sugden resigned after failing
to win the backing of Mouchels
lenders to fill the position permanent-
ly. He had only replaced Bo Lerenius on
Thursday when the firm warned it
could breach its banking covenants.
Sir Michael Lyons, the senior inde-
pendent director and a former chair-
man of the BBC Trust, has been named
interim chairman.
Yesterday the school and road-
builder Mouchel, which has an 87m
debt pile, said Sugden had left after
further discussions with the board
and other key parties about the best
way to secure its future.
City A.M. understands Sugden did
not want to be a stop-gap and that
Mouchels main lenders, Lloyds, Royal
Bank of Scotland and Barclays, did not
offer him the position permanently.
Mouchel said: The lending banks
have informed the board that they are
fully supportive of the board and its
executive team.
Earlier this month Richard
Cuthbert resigned as chief executive
after Mouchel said a statistical error
and mounting risks to contracts
would cut about 60 per cent from this
years profits.
BY PETER EDWARDS
SUPPORT SERVICES

Business secretary Vince Cable said the plan was a creative idea that we should certainly be looking at Picture: Rex
THE Treasury is being urged to consid-
er a radical new scheme that would
see it hand government cash to banks
so they can lend it to small firms, City
A.M. has learned.
The plan, which has been raised in
meetings between government minis-
ters and bankers, has sparked the
interest of Vince Cable as well as back-
ing from newer, smaller banks who
are keen to get a foothold in the mar-
ket.
If the government pursues the
scheme, it could see hundreds of mil-
lions in taxpayer cash deposited in
small-time banks and loaned to strug-
gling small and medium-sized enter-
prises (SMEs) at below current market
prices.
It comes as Chancellor George
Osborne struggles to find ways to stim-
ulate the economy. His lending deal
with banks, Project Merlin, has had
mixed success due to ongoing econom-
ic turmoil.
Under the new plan being presented
to the government, the Treasury
would redirect some of the cash it
deposits in the Bank of England and
larger lenders into either loans or
deposits for newer, smaller banks. The
small-time lenders would then com-
mit to lending that cash onwards only
to SMEs.
Business secretary Vince Cable told
City A.M. that it was a creative idea
that we should certainly look at,
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adding that he would be examining
the proposal.
Aldermore Bank, a small bank set
up in 2009, is making a bid to get
between $75m (47m) and $100m of
Treasury cash deposited per month as
part of the scheme.
Chief executive Phillip Monks said
that the money could be loaned out at
below current market rates: If [get-
ting] the government deposits were
cheaper than retail deposits, we would
pass that advantage on to SMEs.
Philip George, co-managing director
of Shawbrook Bank, a small-time
lender that relaunched today, also sup-
ports it: We have had our own discus-
sions about it... The government wants
to get money into SMEs and we would
be keen to do that, he said.
Metro Bank chief Craig Donaldson
also said his bank would certainly be
on board to participate.
Recently, Osborne unveiled a credit
easing scheme to buy up private debt
with the aim of creating a market in
small business bonds. But the policy is
not likely to have an impact for three-
to-five years. Channelling government
cash into SMEs through banks, by con-
trast, could feed it through much
sooner.
It would likely prove controversial,
however, because it would see taxpay-
ers money put into potentially high-
risk loans. If SMEs began to default at
higher rates, government finances
could be hit.
It is understood that the proposal
was discussed a month ago at a closed-
door meeting between bankers, Cable
and Treasury secretary Mark Hoban.
It was greeted with a high level of
support from the chief executives,
said a source who attended the meet-
ing. Those present were left believing
that follow-up meetings are likely to
be held on the matter. BANKS: P7
Issue 1,490 Monday 17 October 2011
Certified Distribution
29/08/11 till 02/10/11 is 98,447
BY JULIET SAMUEL
EXCLUSIVE

TREASURY URGED TO
BACK SMALL BANKS
ACTIVISTS PITCH TENTS
OUTSIDE ST PAULS
WALL ST PROTESTS SPREAD P5
News
2 CITYA.M. 17 OCTOBER 2011
Trichet: Dissenters
damage EU progress
SLOVAKIA and other small countries
must never again be allowed to defy
the will of the European
Commission on crucial financial ini-
tiatives, Jean-Claude Trichet, outgo-
ing president of the European
Central Bank (ECB), said yesterday,
preparing the way for yet another
power grab by Brussels bureaucrats.
It is necessary to change the
treaty to prevent one member state
from straying and creating problems
for all the others, he told French
radio Europe 1. One needs to be able
to impose decisions.
As well as lamenting the lack of
political federation which meant
every Eurozone country had to indi-
vidually approve the expanded
European Financial Stability Fund
(EFSF), Trichet (pictured right)
also attacked countries
including Greece for failing
to comply with previous
agreements.
I think that the lesson
of the cost of negli-
gence, of the cost
of lax manage-
ment is sufficient-
ly potent that in
future the rules -
which have also
just been rein-
forced will be
f o l l o w e d
much more
strictly, he
said.
Trichet, who
steps down at
the end of this
month, made
the comments the day after G20
finance ministers called on
Eurozone leaders to draw up a
decisive plan to deal with the on-
going sovereign debt crisis.
Last week saw the possibility
of the EFSFs extension
being vetoed by
Slovakias parliament
though the measure
found approval at a
second vote, bringing
down the govern-
ment in the process.
Other countries
most notably
Greece, but also
others including
Italy and even
Germany have
long ignored
budget deficit
limits.
BY TIM WALLACE
EUROZONE

Time to shake up transport policies


BRITAINS transport policy needs fix-
ing; last weeks appointment of
Justine Greening as the new transport
secretary is an opportunity for change
in a difficult area. Her first move
ought to be to scrap the high-speed
rail (HS2) project. The crippling costs
of the proposal, which would see a
32bn ultra-fast railway line built
from London to Manchester and Leeds
via Birmingham, are much greater
than the benefits and that is assum-
ing that the final bill is not massively
greater, as it surely would be. It would
make more sense to concentrate on
smaller, less grandiose projects that
reduce journey times on roads and
railways across the UK, rather than on
this deeply flawed white elephant
which would do nothing to boost the
North of Englands economy.
The second big change is that
Londons airport capacity must be
increased. In the short-term, building
an ultra-fast underground rail link
between Gatwick and Heathrow (cre-
ating a new Heathwick super airport)
to cut the journey time between the
two hubs to 15 minutes might help
(though for a contrary view, see the
Forum on page 25). Eventually, howev-
er, we will either need a new runway
perhaps at Gatwick or another
major international airport or both.
One option is a new airport on the
Thames Gateway, as proposed by Boris
Johnson; but there are other possibili-
ties. They must all be debated without
hysteria. The details matter hugely,
not least for locals, but the bottom
line is that the coalition must
acknowledge the need for increased
capacity. Visitors from China, India,
Brazil and the emerging markets
could transform the UKs tourism
industry and create hundreds of thou-
sands of jobs; total numbers of
tourists to these shores could double
over the next few decades thanks to
the emergence of a global middle
class willing and able to travel. It
would be madness to miss out on this.
London will not remain a world finan-
cial hub without better access.
Because commuters into London
mostly use trains, one often forgets
that most work journeys in the UK
take place by car. The road network
remains essential; Greening has a
great opportunity to halt the war on
motorists. New projects are required
across the UK. London desperately
needs another, proper road bridge or
tunnel across the Thames between the
Blackwall tunnel and the Dartford
Crossing, linking East London to
South East London. That part of the
capital is woefully underserved with
river crossings, a problem that is crip-
pling economic development. Just like
with airports, this is not a new issue:
the East London River Crossing was
approved by two public inquiries dur-
ing the 1970s1990s but blocked by
the government. The most recent ver-
sion of the plan was killed off by
Britains ridiculous planning process
in the noughties. If Boris Johnson real-
ly cares about the economic develop-
ment of that part of London, he needs
to relaunch the idea of a Thames
Gateway bridge or a variant of the
project and work closely with
Greening to deliver it.
The trick with all of these projects
must be to harness private financing.
We urgently need a new version of the
private finance initiative that allows
private firms to build and run infra-
structure without the taxpayer being
ripped off. What is clear is that the
coalitions transport policy is in a
mess. Lets hope the new secretary of
state shakes it up.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
NEWS | IN BRIEF
Hollande wins Socialist run-offs
Franois Hollande yesterday became the
French Socialist Party candidate who
will try to unseat President Nicolas
Sarkozy next April and return a Socialist
to the Elysee Palace for the first time in
17 years. With well over two-thirds of
close to three million votes counted,
Hollandes victory in a presidential pri-
mary election runoff against Martine
Aubry, a more old-school leftist, was
resounding, with his score topping 56
per cent. The polls suggest French voters
are ready to put the left back in the
Elysee Palace and oust the unpopular
Sarkozy, who is widely expected to seek
a second five-year term.
Energy firms face dressing down
The big six energy companies will
today receive a dressing down at
Downing Street amid warnings energy
bills could climb even higher. Bills have
doubled from just 740 five years ago
to 1,345 for the average household.
Cameron will meet with British Gas,
EDF, Eon, Npower, Scottish Power and
Scottish & Southern in a bid to con-
vince them to offer cheaper tariffs to
customers.
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
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Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Jo Simpson
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
lFinance ministers from non-Eurozone
G20 nations issued a statement urging
decisive action from the Eurozone
leaders at their summit next weekend,
to cover Greeces crisis, risks of conta-
gion and Europes wobbling banks.
lThe group urged Eurozone govern-
ments to maximize the impact of the
EFSF in order to address contagion.
lNot all of the promises come from the
Eurozone side. Countries including
Britain said they would be prepared to
pay more into the IMFs bailout pot
as long as it was remained available
for any troubled nation, not just those
in the Eurozone. Estimates suggest up
to 2 trillion may be required.
lHelp for banks as well as governments
was covered. The G20 ministers said
they wanted concrete details on how
banks would be recapitalised.
lFrench minister Francois Baroin
chaired the meeting and assured his
non-Eurozone counterparts that nego-
tiations with Germany on how much
of a haircut to impose on Greek debt
was well underway.
G20 MEETING: WHAT HAPPENED IN PARIS
CHOPPY MARKETS THREATEN EMI SALE
Turbulent financing markets could
derail Citigroups attempt to sell EMI,
according to people close to the $3bn-
plus auction who warned that the US
bank could abandon the sale if it can-
not squeeze higher offers from bid-
ders. The bidding process remains
fluid, with Citigroup expected to
decide within two weeks whether to
sell EMI in one piece, break the UK
music company in two, or put the sale
on hold.
ETIHAD IN TALKS TO BUY
AER LINGUS STAKE
Etihad, the fast-growing Middle
Eastern airline, has approached the
Irish government to buy its 25 per
cent stake in flag-carrier Aer Lingus,
people with knowledge of the move
said. The approach comes after the
Irish sovereign said in September it
would sell its stake in the carrier.
DREYFUS LOOKS TO LISTING OR SALE
Louis Dreyfus Commodities has hired
bankers to prepare for a potential list-
ing or a partial sale to a sovereign
wealth fund after the privately-held
160-year-old trading house failed to
reach a merger deal with rivals Olam,
Glencore and Bunge. Margarita Louis-
Dreyfus, the heir of the trading
empire, has hired Credit Suisse to
advise her trust and the company in
the clearest sign that the trader could
abandon its private status. But people
familiar with the talks warned that a
deal was unlikely until late 2012.
STUDENT DEBT IS LIKE SUBPRIME CRISIS
US university students and graduates
are facing a double whammy of bal-
looning debt loads and high unem-
ployment, raising worries that a
potential delinquency crisis could
bleed into the wider economy.
Student debt has increased nearly sev-
enfold from $80bn in 1999 to $550bn
at the end of June 2011, according to
the Federal Reserve Bank of New York.
WOMEN DESERT TORIES AS
ECONOMIC PAIN HITS HOME
Millions more women than men
think that the economy is headed in
the wrong direction, have become
deeply pessimistic about their chil-
drens futures and are suspicious of
the coalition. That is the conclusion of
extensive internal research by the
Conservative Party that sources have
revealed to The Times. It lays bare the
scale of the task facing David
Cameron if he wants to win back dis-
affected female voters.
TESCOS NOT-SO-BIG PRICE DROP
Dozens of the savings offered by Tesco
in its Big Price Drop the 500m
campaign that started a supermarket
price war three weeks ago are on
foods that were only briefly sold at
the higher price, research by The
Times has shown. Tesco has promised
never-ending discounts.
BARROSO PROPOSES PENALTIES
FOR ROGUE BANKERS
Financiers accused of skulduggery
could become subject to criminal
sanctions under laws set to be pro-
posed by the president of the
European Commission. Jose Manuel
Barroso has said he will this week pro-
pose individual criminal responsibil-
ity for financial players to be
recognised in European law. The
plans for an EU-wide directive would
focus on curbing high frequency trad-
ing.
COUNCIL BOSSES USE CREDIT
CARDS FOR LAVISH LIFESTYLES
Council bosses presiding over the
deepest cuts since the Second World
War are using their taxpayer-funded
expenses and credit cards to fund a
lifestyle of five-star hotels, Michelin-
starred restaurants and golf resorts
and spas, The Daily Telegraph reveals.
CHALLENGERS TAKE AIM AT
CREDIT-RATING TITANS
Several underdogs in the credit-rating
business are stepping up their chal-
lenge to the industrys three giants.
The credit-rating arm of Morningstar,
best known for mutual-fund
research, yesterday launched ratings
of bond deals backed by home mort-
gages. The rating firm already rates
commercial-mortgage bonds and is in
the early stages of developing munic-
ipal-bond ratings.
NISSAN WEIGHS CUT IN
DOMESTIC OUTPUT
Nissan may shift production of more
models from Japan to factories over-
seas and could see domestic output
fall below one million vehicles a year
if the yen continues to strengthen
against the dollar, said Toshiyuki
Shiga, chief operating officer of
Nissan.
WHAT THE OTHER PAPERS SAY THIS MORNING
DIVIDENDS in the UK have broken
through the 20bn-in-a-quarter barri-
er for the first time since 2008.
Data for the third quarter from
analysts Capita Registrars shows
investors pocketed 20.1bn in divi-
dends, a 15.9 per cent rise on the
same period in 2010.
Forecasts for total dividends this
year have been hiked to 67bn 18
per cent up on 2010, as a result.
The figures have been fuelled by
one-off factors including BP restoring
its dividend. But even stripping those
out, payments for the year are up 11
per cent.
Dividends in FTSE 100 companies
are up 17 per cent, with FTSE 250 pay-
outs rising by nine per cent.
It is the first time big-cap stocks
exceeded the dividend growth of the
mid-caps since the fourth quarter of
2009.
For the first nine months of 2011,
the 55bn distributed to shareholders
only just fell short of the total payout
for the whole of 2010.
The research, carried out by
Exchange Data International for
Capita Registrars, found that all sec-
tors increased their dividends in the
third quarter.
Overall 228 companies paid a divi-
dend compared with 201 last year. A
total of 96 increased, reinstated or
started paying dividends, while only
23 cut or cancelled them.
The arrival of commodities trader
Glencore on the exchange after its
float provided 224m in dividends for
its shareholders. Other mining stocks
paid an additional 200m between
them, making the sector one of the
top dividend payers.
Capita Registrars chief executive
Charles Cryer said: Dividends are
growing faster than we expected as
UK firms shrug off the worst stock
market conditions since 2008 and
continue to increase payouts to share-
holders. In real terms they still have
some way to go to top previous highs,
however.
UK quarterly
dividends top
20bn mark
MINING giant BHP Billiton is close to
making a 2bn bid for Ferrous
Resources, the Brazilian iron ore
miner that made a failed attempt to
float on the London Stock Exchange
last year.
Ferrous is understood to be the lat-
est target for Marius Kloppers, BHPs
chief executive, who announced in
August that the company was plan-
ning a $20bn spending spree this
financial year after posting record
profits of 15.1bn.
The FTSE 100 firm started negotia-
tions with Ferrous earlier this year
after a Chinese bidder made a condi-
tional offer for the company, it is
understood.
Ferrous, which was founded in
2007, owns assets in Brazils Iron
Quadrangle region of Minas Gerais,
one of the worlds best deposits of
iron ore, which is used to make steel.
In June last year, the miner pulled
out of a London flotation that was
expected to value the company at
$3.5bn (2.4bn), citing difficult mar-
ket conditions.
It has since hired Deutsche Bank to
sound out a strategic investor or
buyer to help fund its development
projects in the Minas Gerais region .
Both BHP and Ferrous declined to
comment last night.
BHP eyes bid
for Brazilian
iron ore miner
BP, led by Bob Dudley, has reinstated its dividend this year Picture: Reuters
BY JOHN DUNNE
INVESTMENT

MINING

News
3 CITYA.M. 17 OCTOBER 2011
ANALYSIS l UK Dividends
50
55
60
65
70
45
40
2007 2008 2009 2010 2011 e

b
n
ANALYSIS l Growth in quarterly dividends
-10%
-5%
0
5%
10%
15%
25%
20%
30%
-20%
-15%
-30%
-25%
Q108Q208Q308Q408Q109Q209Q309Q409 Q110 Q210 Q111 Q211 Q311 Q310Q410
PROTESTERS vowed to occupy the
City indefinitely as they vented their
anger at bankers and politicians over
the global economic crisis.
Around 250 campaigners remained
pitched outside St Pauls Cathedral
for a second day yesterday after police
thwarted their attempts to take over
the area outside the London Stock
Exchange.
They said they were inspired by an
array of causes including the quest
for global justice, the failures of
financial regulation, opposition to
the coalitions NHS reforms and a
desire to show solidarity with the
Occupy Wall Street movement. One
invoked the spirit of the Egyptian rev-
olution by fixing a sign to a pillar
opposite St Pauls saying Tahrir
Square, EC4M.
Tom, 33, a philosophy lecturer who
declined to give his surname, told City
A.M. that a core of activists would stay
as long as possible. Some, however,
like software developer Gavin
Meredith, 25, said they planned to
leave the protest later yesterday in
order to go to work today.
The police presence was scaled
down after the Rev Dr Giles Fraser,
the canon chancellor of St Pauls,
asked officers to move off the steps of
the cathedral. He said: I think people
have a right to protest, and Im very
happy that people have a right to
protest. And people are being general-
ly respectful.
Worshippers at St Pauls stepped
around the camp as they made their
way into the cathedral. Jill Hooper, 67,
said the protestors were not unruly
but theirs aims were unclear.
I dont think it is effective if I
came in and out of church not know-
ing what it is for.
At its height on Saturday the
protest attracted 3,000 people, accord-
ing to organisers, and included
Wikileaks founder Julian Assange
and gay rights activist Peter Tatchell.
One service at St Pauls was cancelled.
Over the weekend eight people
were arrested on suspicion of affray,
assault on a police officer and posses-
sion of cannabis. Activists claimed
they had been kettled and a police
spokesman said a containment was
in place for two hours on Saturday.
Rallies also took place in more than
80 nations in Asia, Europe and the US
as part of a day of rage. They
reached their height in Rome where
masked Black Bloc protesters torched
cars, attacked banks and hurled
rocks. They were condemned with-
out reservation by prime minister
Silvio Berlusconi but Italians asked
why police made only 12 arrests.
Activists vow
to stay in City
indefinitely
BY PETER EDWARDS
POLITICS

News
5 CITYA.M. 17 OCTOBER 2011
Protesters outside St Pauls yesterday Picture: Reuters
Protests took
place in more
than 80 cities
including
Rome, left, and
New York
Pictures: Reuters
NBNK Investments, headed by chief
executive Gary Hoffman, has
approached the board of Northern
Rock about making a bid for the bank,
which Hoffman used to run.
The board and UKFI, the state
agency that manages the gov-
ernments investment in the
Rock, have given Hoffman per-
mission to join the first round
of bidding despite NBNK hav-
ing been formally barred
from doing so until
November.
Hoffman had been
banned because it was
judged that his familiarity
with the assets could give
him a big advantage over
other bidders.
But City A.M. revealed
in August that NBNK
was nonetheless look-
ing at tabling a bid
because the auction
was running behind
schedule (see inset).
UKFIs decision
means that Hoffman does not have to
wait an extra week and can make an
offer before the end of the month.
The move will see NBNK become an
interloper in what had been a re-run of
the 2007 bidding war between JC
Flowers and Virgin Money, which both
tried to buy the Rock before the crisis.
Both Virgin and JC Flowers are
mulling bids that are likely to be
around 850m far below the
Rocks start-up equity
of 1.4bn, injected by
taxpayers.
UKFI and Northern
Rock believe that
NBNKs arrival on the
scene is in the best
interests of the UK tax-
payer because it makes
the sale more competi-
tive, said a source familiar
with the deal.
Snapping up the Rock
could make sense for NBNK
because it would give
Hoffman an IT platform and
a large surplus of deposits
onto which it could bolt the
632 Lloyds branches it is trying
to buy.
NBNK set to
crash state
sale of Rock
BY JULIET SAMUEL
BANKING

BARCLAYS is considering a bid for


assets owned by three recently nation-
alised Spanish savings banks (cajas).
Following its preliminary bid for the
nationalised Caja Mediterrneo,
Barclays is now leafing through the
portfolios of CatalunyaCaixa,
NovaCaixaGalicia and Unnim.
All three were all taken over by the
Bank of Spain last month after failing
to raise enough capital to comply with
regulations.
But Barclays will only make firm
offers if it can be sure of state guaran-
tees for some of the dodgy assets in the
lenders portfolios, despite chief execu-
tive Bob Diamonds public position
that banks should never have their
risky lending decisions underwritten
by taxpayers.
It is not clear how much Barclays
might pay for the assets: one of the tar-
gets, NovaCaixaGalicia, was originally
seeking a 2bn (1.75bn) cash injection
from a foreign investor, but failed to
raise the money before the regulatory
deadline. CatalunyaCaixa was seeking
1.72bn in capital before it was nation-
alised.
But Barclays would buy only chunks
of the assets, rather than inject bil-
lions to resuscitate whole lenders.
Spain is currently restructuring its
entire banking sector, which is still
plagued by non-performing property
loans and was downgraded by S&P.
Barclays seeks Spanish state
guarantee to buy caja assets
BY JULIET SAMUEL
BANKING

News
7 CITYA.M. 17 OCTOBER 2011
NBNK chief Gary Hoffman could move in on the bank he used to run Picture: REX
RBS is planning a strategic review of
its business that could see thousands
of jobs cut at its investment bank,
many of them in the City. Senior
management at the bank are
mulling the continuing onslaught of
regulation with an eye to paring
down its global banking & markets
(GBM) division. Chief executive
Stephen Hester has talked about
plans to reduce the cost base fur-
ther even after the recent
announcement that it expects to cut
2,000 jobs in the next year.
SHAWBROOK Bank, a new retail sav-
ings bank, is targeting 250m in new
gross lending to small and medium-
sized enterprises (SMEs) this year, the
banks managing director Philip
George told City A.M. The bank, bought
by RBS Equity Finance in January and
relaunched under the Shawbrook
brand today, also plans to mop up
350-400m in new retail deposits over
the same period. Meeting the targets
would mean a substantial expansion
of its balance sheet, which currently
has assets worth 75m.
New retail bank
targets SMEs
RBS mulls cuts
in finance jobs
BANKING

BANKING

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NBNK Investments is eyeing a bid for
Northern Rock, City A.M. has learned.
The investment vehicle headed by
Lord Levene had been ruled out of the
running because it was forbidden
from making a bid for the Rock for a
period of 12 months after poaching its
former chief executive Gary Hoffman
last year.
However, City A.M. understands that
the Rock auction is running well
behind schedule, and so NBNK is con-
sidering entering the fray in October
when its prohibition on bidding ends.
The loose timetable will help. An
adviser familiar with the sale said:
Its not at all clear as to price or
process. And its not clear when it will
become clear. If NBNK does decide to bid it
have a significant
rivals d
B
Y
L

FREE
BY JULIET SAMUEL
EXCLUSIVE

DOWNTONS
CREATOR IN
NEW DRAMA
AT NOMURA
SUNDAYS have taken on new meaning for
Nomuras joint head of global equities
Benoit Savoret, ever since Downton Abbey
returned to the nations screens.
So lets hope the twists and turns of
the First World War drama havent been
spoiled for Savoret and his colleagues
William Vereker, Paul Spanswick and
Brett Olsen, after Nomuras senior
bankers spent the evening with the cast
of the ITV show at a fundraiser hosted by
its creator Julian Fellowes.
For once, the very entertaining Jeffrey
Archer was upstaged, as the Earl of
Grantham, Lady Mary and valet John
Bates otherwise known as actors Hugh
Bonneville, Michelle Dockery and
Brendan Coyle held court at the Silver
Jubilee Ball in aid of Nomuras partner
charity The Rainbow Trust.
Fellowes was on the verge of tears as
he talked about the work of the chil-
drens charity, and his emotional turn
inspired the cast of Downton Abbey to
bid for dinner with the writer who made
them household names.
None of his actors won the dinner with
Fellowes though; another, unnamed,
guest a few glasses of wine had been
drunk by that stage placed the bid that
helped the nights takings reach 200,000.
DISHES OF THE DAY
JAMIE Oliver has already invited a few of his
new neighbours round to let the kitchen
work its way up to fifth gear. And from
today, the doors of the latest Jamies Italian
at 38 Threadneedle Street have been
thrown open to the rest of the City.
The restaurant is special anyway, says
Jamies camp, but mindful of its demand-
ing banking diners, Oliver and his busi-
ness partner Gennaro Contaldo have
added some extra dishes to the menu.
City people are going to want different
wines from people who eat in, say,
Guildford, explained a mole.
Nothing against Guildford, you under-
stand, but the dinner ladies nemesis is
limiting his Cumbrian rock oysters,
Devonshire lobster ravioli, white truffle
risotto and herb roasted quail to his latest
affordable Italian franchise in the for-
mer Bank of Scotland building.
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m L o r s f s a l y c m o n o c n e s i t h g i n r u t e p r o t s - n o r n o e f r d a e t o u s q


o c b i c e p . S y l p p l a l i w e g r a h c r u s d r a c t i d e r . C y r a y v a m s d o i r e
e x a g t n i d u l c n , i s e n i r L i a A t l e y D d b e t a r e p , o w o r h t a e n H o d n o m L


a t r o p s n a r f T o s n o i t i d n o l C a r e n e e G h d t n a s n o i t i d n o c g n i k o o
t t c e j b u e s r s a e r a . F e g n a h o c t t c e j b u e s r d a n , a s e g r a h d c n s a e


9 0 / 3 t 2 t a c e r r o c s e c i r P . y l p p a E C N A R R F I d A n a M L f K o n o i t a
x r e o k f c e h e c s a e l . P n o i t a i r a e v t a e r g n a h c x d e n y a t i l i b a l i a v o a


. 1 1 / 99/
t c a x
The Capitalist
8 CITYA.M. 17 OCTOBER 2011
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
NO MATTER that Gracechurch
Street is 53 miles from the sea
Loch Fyne still aims to serve the
freshest seafood you will find any-
where. A big claim, and one that
six stockbrokers were keen to put
to the test when they visited the
seafood restaurant that started
life as a small oyster shack in a
glen at the head of Argylls Loch
Fyne. Three dozen oysters disap-
peared faster than you can say
enterprise with respect for ani-
mals, people and ecology,
accompanied by one bottle of
Baron de Barbon Reserva Rioja,
two bottles of Mersault, four bot-
tles of vintage Pol Roger, four
plates of Kinglas fillet steak, two
ribeye steaks and three
lobster/crab platters. How wor-
thy of honour is the sea,
thought the group, inspired by
the venues Gaelic motto as they
split the 700 bill.
BILL OF THE WEEK
Brett Olsen, EMEA MD at Nomura (left) and his wife Betsy (centre) with the Downton Abbey cast
Lines open 7 days a week, 8am-8pm, except bank holidays.
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THE manufacturers organisation EEF
has added its name to the growing list
of bodies calling on the chancellor to
introduce a package of tax reliefs for
companies who are about to be ham-
mered by the governments 3.2bn
stealth tax on carbon.
In a set of demands ahead of
George Osbornes autumn state-
ment next month, the EEF said:
The chancellor must introduce a
compensation package which
effectively targets those energy-
intensive industries most affect-
ed by its climate change
policies.
Earlier this month, City A.M.
revealed the chancellor was
poised to announce such a
compensation package in his
autumn statement, after
intensive lobbying from
employers organisation the
CBI.
The package will focus
on those firms that use large amounts
of energy, such as cement, aluminium
and steel makers.
Osborne came under fierce criti-
cism after he shocked industry by
announcing a carbon floor price in
his Budget last March, which will
raise 3.2bn for the excheq-
uer by 2016. The
Treasury will
set a mini-
mum price for
carbon even if
the market price
is lower and col-
lect the differ-
ence as taxation.
It was labelled a
stealth tax
because the govern-
ment said it was a
green measure while
critics argued it was
only introduced to
help pay for a 1p cut in
fuel duty.
Earlier this month,
John Cridland, the direc-
Manufacturing body in
call for carbon tax relief
George Osborne is set to announce a relief package for energy intensive firms Pic: Reuters
BY DAVID CROW
POLITICS

News
9 CITYA.M. 17 OCTOBER 2011
@
@
@
MORE NEWS
ONLINE
www.cityam.com
tor-general of the CBI, told City A.M. he
had been in discussions with the
Treasury about exempting some ener-
gy-intensive firms from the carbon
floor price and was hopeful the
chancellor would find a resolution.
He added: I have been talking to
the Treasury about energy-intensive
industries and the carbon floor price
and I am hopeful we will see a resolu-
tion in the autumn statement.
JOHN CRIDLAND INTERVIEW: P18-19
In
d
u
s
try
to
g
e
t c
a
rb
o
n
ta
x
b
re
a
k
s
THE CHANCELLOR is set to unveil a
package of tax relief for energy-inten-
sive firms in his autumn statement,
after he was criticised for hitting
industry with a 3.2bn carbon stealth
tax in his last Budget.
City A.M. understands the package
will help those firms that use large
amounts of energy, such as cement,
aluminium and steel makers. A
Treasury source confirmed the chan-
cellor was working on a package for
energy-intensive industries.
John Cridland, the director-general
of the CBI, told City A.M. he had been in
discussions with the Treasury about
exempting some energy-intensive
firms from the carbon floor price and
was hopeful the chancellor would
find a resolution. If youre going to do a carbon flo
price in the UK then yo
sensitive who n
A
S
W
FREE
BY DAVID CROW
EXCLUSIVE

Subject to terms, conditions and availability. Valid for travel 8 Nov 11 - 28 Mar 12. Book by 24 Oct. Limited availability over peak travel periods,
holiday periods and sporting events. Handling fee per passenger per one-way ight: 6 per credit/debit card transaction may apply. Supplement
applies for travel Fri - Sun.
BORIS Johnson has risked a fresh row
with David Cameron by warning that
Britain will become a bit part play-
er in the global economy unless
a new hub airport is built in the
south-east.
The Mayor of London said
Britain risks becoming an avia-
tion backwater and losing
out in the battle for emerg-
ing markets contracts
because the capitals air-
ports will be at capaci-
ty within 20 years.
Without those
(extra) runways we
will lose business to
our European com-
petitors and we risk
relegation from eco-
nomic powerhouse
to merely a bit part
player in the global economy.
Johnson has long opposed the coali-
tions pledge not to expand airport
capacity in the south-east and wants to
see a floating multiple runway air-
port built in the Thames Estuary,
dubbed Boris Island.
He spoke out as Willie Walsh,
chief executive of International
Airlines Group, which owns
British Airways, claimed that new
transport secretary Justine
Greening faces a conflict
of interest because her
Putney constituency
is under the
Heathrow flight
path.
Last week
Walsh also said he
opposed a
Heathwick rail
link between
Heathrow and
Gatwick.
Mayors plea
to Cameron
over airport
BY PETER EDWARDS
AVIATION

FOREIGN secretary William Hague


has dismissed claims that Liam Fox
and his best man were trying to run
their own foreign policy operation as
it emerged that Adam Werritty could
be investigated for fraud.
Hague told the BBC it was fanci-
ful to suggest one minister could
run a separate policy. It came as
police confirmed they could investi-
gate Werritty over allegations of
fraud. Labour MP John Mann has
asked officers to look into Werrittys
use of business cards which wrongly
claimed he was an adviser to Fox.
A City of London Police spokesman
said the force had received one allega-
tion of fraud and the economic crime
team will decide whether it is appro-
priate to investigate. Fox resigned on
Friday over revelations about his rela-
tionship with Werrity
Adam Werritty could face fraud
probe over Fox business card
POLITICS

News
11 CITYA.M. 17 OCTOBER 2011
M2
M20
M25
A2
A2
ESSEX
ESSEX
KENT
Ebbsfleet Intl
Channel Tunnel
rail link
New rail links
Southend-on-Sea
Sheerness
Gravesend
Chatham
New terminals
New terminals
Island runways
Maidstone
ISLE OF
SHEPPEY
Runway to
be built on
artificial
island
Shuttle train via
tunnels and bridges
How an estuary airport might look: flight paths would be up the Channel and along the
Thames Estuary to avoid residential areas
Promoted to the cabinet
from the junior economic
secretary role, Greening
faces several challenges. She
has to continue the high-
speed rail argument, tackle
Londons airport problems
having opposed a new
Heathrow runway and
establish her place as a cabi-
net heavyweight.
Replacing scandal-struck
Liam Fox, Hammond moves
to defence from transport
a brief in which he survived
rows over foreign trains and
high-speed rail links. Among
his many shadow roles, he
excelled in the Treasury. As a
result, his grasp of numbers
should come in handy when
dealing with the messy MoD.
Famed for winning a by-elec-
tion aged just 27 in 2009,
Smith is a rapid-riser with
socially liberal views. A for-
mer business consultant at
Deloitte, she will handle
potentially controversial poli-
cy areas including taxation
on North Sea oil, Britains
contributions to the EU
budget and excise duties.
Unsurprisingly for the chan-
cellors parliamentary private
secretary, Javid is on mes-
sage with Osbornes spend-
ing plans. He may indeed go
further, saying he believes in
a low tax, low inflation
economy. However, he is
less keen on inflation and
QE in contrast with his new
bosss letters to Mervyn King.
JUSTINE
GREENING
TRANSPORT
SECRETARY
PHILIP
HAMMOND
DEFENCE
SECRETARY
CHLOE
SMITH
ECONOMIC
SECRETARY
SAJID JAVID
GEORGE
OSBORNES
PPS
WHOS WHO: CABINET RESHUFFLE
News
12 CITYA.M. 17 OCTOBER 2011
PoliticsHome.com PoliticsHome.com
Apply to join today at www.cityam.com/panel
In association with PoliticsHome.com
In partnership
with
BlackBerry brand seriously hurt by
outages, according to our panel
Slight problems
No problems
Severe problems
Significant problems
%
28%
10%
31%
31%
BlackBerry users:
have you experienced problems?
Samsung
Sony Ericsson
None
Apple
Dont know
Other
HTC
%
8%
6%
6%
13%
1%
2%
Which brand will benet from BlackBerry outages?
How long will it take for the BlackBerry brand to recover?
Slightly less likely
Much less likely
Would never choose Blackberry
Would still consider Blackberry
Would always choose Blackberry
Dont know
Somewhat less likely
%
17%
9%
18%
19%
30%
5%
3%
Are you more or less likely to buy a BlackBerry?
Six Months to a year
One to three years
More than three years
Less than a month
Will never recover
Dont know
Brand is undamaged
One to six months
%
1%
4%
4%
17%
27%
24%
12%
10%
64%
THE BlackBerry brand has been seri-
ously damaged by the recent out-
ages that left users with no data
services for three working days,
according to the City A.M. /
PoliticsHome Voice of the City Panel.
More than half of the 355 people
surveyed said it will take longer
than six months for BlackBerry to
restore its dented reputation, with
10 per cent saying it will never recov-
er. Only four per cent said
BlackBerry-maker Research In
Motion (RIM) was unaffected by the
server failure.
An overwhelming 90 per cent of
BlackBerry users said they had been
hit by the outages last week, suggest-
ing the problems were not limited
to individual consumers but also hit
enterprise contracts.
Almost two thirds of respondents
said Apple will be the biggest win-
ner, with HTC and Samsung also
among the top choices. Forty-four
per cent of people said last weeks
events will make them less likely to
choose a BlackBerry when it comes
to renewing their contracts, with
almost a fifth saying they are
much less likely to choose the
brand. A third said it would not
affect their decision to buy a
BlackBerry next time.
The most common answer when
we asked respondents to describe
the current state of the
BlackBerry/RIM brand in just one
word was damaged, with tar-
nished, unreliable and trou-
bled also featuring highly.
The angry response was as much
due to RIMs handling of the crisis as
the outage itself. One respondent
said: People will forgive you for a
mistake if they understand what
went wrong and what youre doing
about it but if you communicate
poorly, as RIM has, then people are
far less forgiving.
Another said: RIM didnt man-
age the problem well. It should have
been quicker to acknowledge it had
a serious problem and said it was
addressing it as fast as possible.
BY STEVE DINNEEN
TELECOMS

Apple, the Apple logo, and iPad are trademarks of Apple Inc., registered in
the U.S. and other countries. App Store is a service mark of Apple Inc.
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Driving down the cost of trading
JEREMY Blood is planning to step
down from the helm of Mitchells &
Butlers following the aborted 940m
takeover by billionaire Joe Lewis, it is
understood.
Blood was appointed as interim
chief executive in March to replace
Adam Fowle, who left by mutual con-
sent after two years in the post.
City A.M. understands the former
Scottish & Newcastle managing direc-
tor made it clear he always took the
role on an interim basis, and that the
ongoing search for a full-time chief
executive for the pub group which
was put on hold during the takeover
talks by its largest shareholder Joe
Lewis has been restarted.
James Hyde, a senior partner at
headhunter Korn/Ferry Whitehead
Mann, worked on the July appoint-
ment of Ron Robson as M&Bs non-
executive deputy chairman, and it is
understood Hyde has been asked to
lead the hunt for suitable chief execu-
tive candidates, as well as at least two
additional non-executive directors.
Meanwhile, Bob Ivell, who agreed to
become acting chairman after Simon
Burke quit on 14 July, is facing pres-
sure to stay on permanently. Plans to
recruit a new chairman were shelved
last month when Lewis made his open-
ing possible bid of 230p per share.
There are as yet no plans for Ivell to
discuss his position with Lewis, but it
is understood the pair will meet in
the coming weeks.
Both Blood and Ivell were unavail-
able for comment.
M&B restarts
the hunt for
new Blood
ADVISORY firms and investment
banks face another troubling few
months, after the worst start to the
fourth quarter for M&A and equity
fundraisings since 2002.
Global M&A activity since the start
of the fourth quarter earlier this
month has reached just $58.9bn
(37.4bn), down from $99.2bn at this
point a year ago, data from Dealogic
shows.
UK M&A activity was even more
subdued, with activity at its lowest
ebb since 1998. Deals worth just
$2.8bn have closed since the start of
October. This compares to a peak of
$31bn in the same period in 2005 and
$3.9bn a year ago.
Equity market activity globally is
also at 2002 lows, as companies have
shelved IPOs and share placements
until they can be certain of better
prices in calmer conditions.
Companies worldwide have raised
just $3.6bn on stock markets in 88
transactions since the start of October
down from $62bn a year ago.
UK equity placements are down,
but not yet plumbing the lows seen in
2008. Ten UK companies raised a total
$102m in the past two weeks, down
from $2.4bn a year ago but still higher
than the paltry $52m raised in 2008.
Dealmakers set
for worst fourth
quarter since 02
BY HARRIET DENNYS
LEISURE

News
14 CITYA.M. 17 OCTOBER 2011
ANALYSIS l Mitchells and Butlers
p 260
240
220
10Oct 11 Oct 12Oct 13Oct 14Oct
240.00
14 Oct
Above: M&Bs largest
shareholder Joe Lewis
Left: Bob Ivell
Right: Jeremy Blood
BY ALISON LOCK
M&A

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Keeping London on the move
Cosmetic surgery tax hike
News
15 CITYA.M. 17 OCTOBER 2011
CHANCELLOR George Osborne is plan-
ning a new tax on plastic surgery
which would boost the price of some
treatments by 20 per cent.
New guidelines call for doctors per-
forming more invasive treatments
such as facelifts, breast enhancement,
liposuction and tummy tucks to
charge VAT. Until now, that charge has
only applied to minor treatments,
including Botox injections and chemi-
cal peels carried out in High Street
beauty salons.
The new levy, already dubbed the
boob tax could raise up to 500m a
year for the government, but has been
condemned by the cosmetic industry.
Patients would have to pay VAT
unless they can persuade the doctor
that the operation is therapeutic.
Clock is ticking on plan to stop a euro break-up
O
VER three weeks ago during the
IMF, World Bank meetings,
George Osborne suggested
Eurozone leaders had just six
weeks to come up with a substantive
plan to solve its crippling debt crisis.
The deadline is the G20 leaders sum-
mit in Cannes on 3 November.
The German Chancellor Angela
Merkel says theres no big bang
miracle cure, but hopes that Europe
is edging towards a solution have
buoyed stock markets. The FTSE has
rallied nearly eight per cent since the
Washington summit and the DAX
and CAC40 are up nearly 15 per cent
in the last three weeks.
That rally has been based on the
broad outline of a plan centred
around three things: a more credible
restructuring of Greek debt, includ-
ing private sector involvement of 50
per cent or more; a big recapitalisa-
tion of banks 200bn or more to
deal with it, and devising a scheme
that leverages the firepower of the
EFSF from 450bn to 2 to 3 trillion
to protect the debt of other peripher-
al countries. There will also need to
be measures to try and boost growth.
But thats the easy bit, because at
the back of every investors mind is
the thought we could be facing a big
fall. To avoid disappointment, leaders
will not just need to announce a plan,
they will need to provide exact details
on how each component will work.
And lest they dither, former
Lehman banker Larry MacDonalds
note reminds us whats at stake. HSBC
says if the euro broke up it could
mean a repeat of the Great
Depression. The reintroduction of
national currencies and legal ambigu-
ities would rattle markets. Peripheral
nations could suffer hyperinflation as
their currencies plunged, while the
core economies would be hammered
by surging exchange rates.
If Greece left the euro first, UBS
suggests its new currency would drop
60 per cent and local borrowing costs
would jump at least seven percentage
points. The cost in that country
would be as much as 11,500 a person
in the first year.
If Germany quit the euro UBS says
its new exchange rate would surge 40
per cent and interest rates two per-
centage points. Banks would require
recapitalisation and trade would slide
20 per cent. Each person would lose
up to 8,000 in the first year.
Credit Suisse reckons the S&P 500
would tumble to around 750 and
company earnings would slide as
much as 45 per cent. They have
assigned a 10 per cent probability to a
euro breakup.
No pressure then. The clock is tick-
ing.
Ross Westgate is co-anchor of CNBCs
Worldwide Exchange.
CNBC COMMENT
ROSS WESTGATE


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tunities for financial institutions look-
ing to grow, but their legal systems are
a major drawback, according to a sur-
vey out today from Norton Rose.
Asia won out firmly as the main
driver of growth in the survey of over
200 institutions. South and north
Asia were revealed as the regions
most widely seen as offering the best
opportunities for growth in the short,
medium and long term.
Sixty-five per cent of respondents
see south Asia as offering strong long
term opportunities, whilst 48 per
cent say the same about north Asia.
Latin America was seen by 40 per
cent as offering strong short-term
potential, and was viewed favourably
by 40 per cent, alongside the middle
east, as a good region in the medium
term, defined as between three and
five years in the future.
Hot on the heels of Asia, Africa
came out as the third most popular
region for long-term opportunities,
with 38 per cent viewing it favourably.
However, behind the enthusiasm
for investing in emerging economies
lie some doubts.
In terms of legal rights, 62 per cent
of those surveyed are concerned
about levels of enforcement in Africa.
The same is true of 60 per cent in
south Asia, despite its popularity, and
56 per cent in eastern Europe.
Restrictions on foreign ownership
in south Asia also worry 63 per cent
of financial institutions.
And 70 per cent fear political insta-
bility in Africa, as well as 62 per cent
in the middle east.
Financial institutions now depend
on China and India as sources of busi-
ness and of capital, and these find-
ings show a shift in the financial
landscape there is a recognition
that, in the mid and long term, Latin
America and Africa will join Asia as
the real drivers of financial activity,
said Norton Roses James Bateson.
However, the findings also high-
light the significant hurdles that
stand in the way of businesses look-
ing to play a part in the new financial
order. The enforcement of legal
rights, foreign ownership restrictions,
political instability these all remain
challenges for growth economies and
businesses.
Survey: finance firms worry
about emerging market laws
News
16 CITYA.M. 17 OCTOBER 2011
BRITAINS economic growth is grind-
ing to a halt due to an impending
Lehman-style financial crisis in the
Eurozone, according to the
Centre for Economic Business
Research (CEBR) and more
quantiative easing is the best
solution.
The think tank slashed its
economic growth fore-
cast for 2011 from 1.5
per cent to 0.6 per cent,
and predicts 0.7 per
cent growth in 2012.
A Lehman-style
financial crisis in the
Eurozone now looks
highly likely trig-
gered by the unsus-
tainable nature of
the currency area
in its current form
and the failure of
politicians to take
decisive action to calm
markets or make the neces-
sary pro-growth reforms at a fast
enough rate, the think tank said.
Falling demand in the single-curren-
cy bloc is likely to hit UK exports and
investment levels, it added.
A new fiscal stimulus would be
damaging, the CEBR warns, as it
would risk scaring bond markets
and push interest rates up.
Mervyn King (left) could lead the
Bank to carry out even more quanti-
tative easing, the CEBR argued.
We are likely to see more,
not less, quantitative eas-
ing, economist Scott Corfe
said, adding assets
purchased by the
Bank of England
could rise to
400bn in a very
severe crisis.
H o w e v e r ,
the Ernst &
Young Item
Club disagreed
yesterday, stat-
ing QE is unlikely
to put the recovery
back on track.
Lehman-style
crisis forecast
for Eurozone
BY TIM WALLACE
UK ECONOMY

CONSUMER prices rose by five per cent


in the year to September, tomorrows
figures are expected to reveal.
Augusts inflation report from the
Bank predicted that consumer price
index (CPI) inflation would exceed five
per cent before the end of 2011.
The last time CPI inflation stood so
high was in September 2008.
Augusts prices showed rises of 4.5
per cent. The retail price index (RPI),
which is regarded by some as a better
measure of the cost of living, increased
by 5.2 per cent.
The CPI inflation target stands at
two per cent, within one percentage
point on each side. It has been above
three per cent since January 2010.
The Bank says price rises should
start to slow into 2012, as temporary
factors like Januarys VAT increase
drop out of the figures.
Inflation set to hit three
year high of five per cent
UK ECONOMY

ANALYSTS VIEWS: WILL SEPTEMBERS INFLATION HIT 5PC? By Tim Wallace

PHILIP SHAW | INVESTEC


Septembers inflation will jump to 5.1
per cent, thanks mainly to sharp increase in
gas and electricity prices. However, we are
hopeful that inflation will fall back below five
per cent next month and drop through
three per cent in the first half of 2012.

HOWARD ARCHER | IHS GLOBAL INSIGHT


We expect CPI inflation to hit a three-year high of 4.9 per cent, though it is possible that it could have reached
five per cent in September. Sharp rises in electricity and gas prices have been major contributing factors. However,
this should be close to the peak inflation will hopefully start edging down late this year and fall back in 2012.

KEN WATTRET | BNP PARIBAS


CPI data should show inflation rising
to five per cent last month. The MPC remains
confident that it will come down sharply next
year. We expect their minutes to show a 9-0
vote in favour of QE2, which may pave
the way for even more early next year.

FINANCIAL INSTITUTIONS VIEWS OF INVESTMENT DESTINATIONS


Best for long-term Worst for enforcement Worst for foreign
opportunities of legal rights ownership restrictions
Top ranked South Asia Africa South Asia
Second North Asia South Asia Middle East
Third Africa Eastern Europe N/A
BY TIM WALLACE
WORLD ECONOMY


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HOUSE prices in the south are now
over twice as high as elsewhere in
England and Wales, according to ask-
ing prices collated by Rightmove.
Asking prices in southern regions
have shot up by 4.7 per cent this
month, wedging an even bigger gap
between housing costs in the south
compared to further north.
In London alone, sellers are asking
5.2 per cent more than in September.
In regions outside the south -- the
north and north west, Yorkshire and
Humberside, the Midlands and Wales
prices in October actually fell 0.7 per
cent compared to September.
The gulf in average asking prices is
now the highest Rightmove has ever
recorded, with prices in the south
(336,743) now more than double
those in the north (164,347), the
report said.
Asking prices in London have hit an
all time high, according to the
Rightmove data, released this morn-
ing. The average house price has
spiked to a jaw-dropping 450,210.
The number of new sellers in the
capital has plummeted, with weak
supply and high demand pushing
prices higher.
Supply is down 13.9 per cent in
London this month, compared to
October 2010. Throughout the year so
far, the number of new sellers is down
7.9 per cent on the same period last
year.
And one of the main drivers of
more buoyant conditions in the capi-
tal is the number of potential buyers
who have either ready cash or the abil-
ity to raise a substantial deposit and a
secure job to fund mortgage repay-
ments, the report said.
Lenders in London are competing to
offer low rates to cash-rich house buy-
ers, Rightmove said.
However, the reality is that there is
further evidence of the two-tier twist
which is dogging the return to more
widespread liquidity in the housing
market, added Rightmove director
Miles Shipside.
House price
rises limited
to the south
BY JULIAN HARRIS
HOUSING

ANALYSIS l Asking prices across England & Wales


North West
Avg. House Price 161,797
Monthly Change -1.3%
Annual Change -1.0%
North
Avg. House Price 145,585
Monthly Change 0.1%
Annual Change -4.2%
Yorkshire & Humberside
Avg. House Price 154,498
Monthly Change 0.7%
Annual Change -3.4%
West Midlands
Avg. House Price 185,695
Monthly Change -0.3%
Annual Change -2.6%
Wales
Avg. House Price 165,597
Monthly Change -0.8%
Annual Change -0.9%
South West
Avg. House Price 262,675
Monthly Change 4.2%
Annual Change 1.1%
UP
on one year ago
DOWN
on one year ago
Greater London
Avg. House Price 450,210
Monthly Change 5.2%
Annual Change 7.5%
East Midlands
Avg. House Price 159,341
Monthly Change -3.1%
Annual Change -5.5%
East Anglia
Avg. House Price 227,549
Monthly Change 4.2%
Annual Change 2.8%
South East
Avg. House Price 317,055
Monthly Change 4.5%
Annual Change 4.0%
News
17 CITYA.M. 17 OCTOBER 2011
City office take-up stays low
THE TAKE-UP of new office space in
Londons Square Mile this year could
drop to its lowest since 2003 as eco-
nomic uncertainty continues to
dampen demand, property consult-
ant Cushman & Wakefield has
warned.
Research published by the firm
today shows that leasing activity in
the City and the Docklands rose more
than 73 per cent in the third quarter
of this year to 1.4m square feet com-
pared with the previous quarter.
However, take-up a measure of
economic prosperity for the year to
date is still down 45 per cent com-
pared with the same period last year.
One strong quarter is not suffi-
cient to call a recovery in the market,
Cushman & Wakefield said, predict-
ing the annual take-up to be less than
four million square feet -- a level not
seen since 2003.
James Young, Head of Cushman &
Wakefields City office, said:
Occupiers in general remain cau-
tious and a number of decisions have
been delayed. With the current eco-
nomic uncertainty, 2012 will see take-
up significantly below average.
There were four deals larger than
50,000 square feet signed in the City
and the Docklands in the third quar-
ter. These were mainly lease re-gears
and renewals including PWC signing
on at Hays Galleria, at London
Bridge.
Development in the City also
remains constrained, with space
under construction a million square
feet below the five-year average,
Cushman and Wakefield said.
BY KASMIRA JEFFORD
PROPERTY

THE SUPPLY of residential accommo-


dation available to rent is in sharp
decline, according to a report
released this morning.
The number of letting agents
reporting that there are more tenants
than properties has reached the high-
est level since records began, the
Association of Residential Letting
Agents (ARLA) has said.
Around three quarters of respon-
dents to the ARLAs survey say that
demand is outstripping supply.
The increase in demand is particu-
larly acute in London and the south
east and suggests that there is insuffi-
cient supply of property to meet ten-
ant demand, the report said.
The survey also showed that ten-
ants are staying in their properties for
longer, as they lose confidence in
finding a new home to rent.
Letting agents say supply
of rental homes is falling
HOUSING

Interview
18 CITYA.M. 17 OCTOBER 2011
The quiet diplomat
who is fighting on
behalf of the real
squeezed middle
I
T is always hard to fill someone
elses shoes, especially if they
belong to a larger-than-life figure
such as Lord Digby Jones or Sir
Richard Lambert. That was the posi-
tion that John Cridland found himself
in when he took the reins at the CBI
just under a year ago. The mild-man-
nered, softly spoken 50-year old could-
nt be more different to his
predecessors, but his quiet, behind-
the-scenes diplomacy mastered dur-
ing a decade as the CBIs number two
appears to be paying off.
Frenetic is how he describes the
party conference season when we
meet towards the end of the Tory
gathering in Manchester. He has been
in much demand recently, as the gov-
ernment seeks to develop a growth
plan to boost the flagging economy.
Indeed, many of the announce-
ments in George Osbornes speech,
most notably a policy to relax some
employment regulation and a scheme
to boost credit for smaller firms, are
straight off the CBI wish-list. Cridland
says he is hopeful that more
demands, such as tax reliefs for manu-
facturers that use large amounts of
energy, will be met when the chancel-
lor delivers his autumn statement
next month.
At the Tory conference, Cridland
finds a chancellor who is at least will-
ing to listen to, and in some cases
adopt, his ideas. But he says he was
concerned by the anti-business
rhetoric on display at the Labour and
Liberal Democrat conferences. Ed
Miliband might have claimed his
speech wasnt anti business, but he
certainly left that impression with a
lot of business people. Although
there is the occasional bad apple in
the barrel, most companies are try-
ing to do the right thing and making
a good fist of it, he says.
For businesses, one of Osbornes
most welcome announcements was to
allow firms to dismiss workers during
their first two years in the job without
being taken to an unfair dismissal tri-
bunal, up from one year currently,
while also introducing fees to deter
spurious claims.
I pressed the chancellor to make
that announcement, explains
Cridland, who says the measure will
help smaller businesses the most. If
youve got four people and youve got
just about enough business to take on
a fifth, you are very worried about
ending up at an employment tribu-
nal. Its a David and Goliath situation.
You end up with a manager whos
also an amateur personnel officer
whos just out of their depth.
Far from exacerbating unemploy-
ment, the measure will actually help
bring it down, especially for the
young, he says. If I was a 16 year old
who couldnt find a job, whats the
priority for me: getting a job, or hav-
ing an extra employment right?
Because the alternative is having the
right but having no job at all.
Despite the victory for employers,
Cridland admits frustration at the
fact Britain cant do more to tackle
some of the more pernicious employ-
ment regulation coming out of
Brussels. At the same point that this
reform is being announced, theyre
bringing in the agency workers direc-
tive [which guarantees temporary
workers the same pay and rights as
full-time ones] which I think is really
detrimental to the unemployed trying
to get back into the labour market.
He urges the government to do as
much behind-the scenes work as it
can to prevent similar red-tape fur-
ther down the line. The agency work-
er directive was held at bay for more
than six years by Tony Blair. It was
passed when Gordon Brown was
Prime Minister. So draw your own con-
clusions. If the government has the
will and recruits allies in Europe, it
can fight battles and win the argu-
ments.
Cridland is less certain about credit
easing, the radical scheme that will
see the government sell tens of bil-
lions of pounds worth of gilts and use
the proceeds to buy corporate bonds.
Although he describes the plan as an
example of exciting, innovative, out
of the box thinking, he wants to see
flesh on the bones before delivering
a final verdict. Asked whether he is
worried the government could end up
with billions of dollars of toxic assets
on its books, he replies: Thats the
$64,000 dollar question. The govern-
ment should not take risks with the
public finances.
He hopes the scheme will be used
to help the squeezed middle not
the one coined by Ed Miliband, but
smaller, high growth businesses
that are struggling to get finance. He
is keen to make a distinction between
these firms and what Americans
would call Mom and Pop opera-
tions. Although he has some sympa-
thy for the micro-businesses who fill
MPs postbags because they cant get
an overdraft extension, he can under-
stand why banks turn them away. It is
the drought of credit for the Ms in
SME that is the much bigger prob-
lem, he says.
Unlike many, Cridland doesnt
blame the banks for constrained cred-
it, at least not entirely. Indeed, he
raised a few eyebrows when he came
out so strongly against the interim
findings of the Sir John Vickers report
into banking. I know the CBI putting
its name behind a message calling on
Vickers to be more careful was poten-
tially quite a challenge. Am I just
speaking for the banks? No, Im speak-
ing for the businesses who would not
be able to get finance if Vickers had
defined the ring-fence too tightly.
However, he is clear that banks
alone cant solve the credit problem,
especially because regulatory
requirements have gone up, weaken-
ing their ability to lend. Although he
is happy that the government is try-
ing to ginger up corporate debt mar-
kets with its credit easing plan, he is
pressing Osborne to consider another
radical scheme: tax breaks for big
firms who buy equity stakes in their
suppliers.
Its often larger companies who
know who the high growth business-
es are, because theyre watching
them, keeping an eye on them,
theyre in their supply chain. They
might actually want to strengthen
those companies and see them
become more robust. So I think there
might be a change for tax credits for
large companies that take minority
stakes in smaller firms.
Although we spend most of our
time talking about what Osborne can
do to boost the economy, he says the
Eurozone crisis largely outside the
chancellors control poses the
biggest risk to the UK economy. I ask
him to look into his crystal ball to pre-
dict an outcome, and his response,
while characteristically understated,
is more downbeat than I expected. It
is not obvious that there is a sustain-
able solution on the cards.
He qualifies this rather Malthusian
statement by saying he still thinks
the most likely outcome is some
kind of transfer union, which would
see the richer European states under-
write the debts of weaker peripheral
ones. Thats the only way we will set-
tle this, he argues, because the real
target is Italy and Spain. In many
ways the focus on Greece is a proxy
for what comes after. He has little
time for European politicians, who he
says have exacerbated the crisis with
constant dithering, and fears they
may have wasted all their political
capital by letting the saga drag on.
It saddens me that there were a
number of moments over the last 18
months when European governments
could have created a firewall that
would have been high enough and
wide enough to keep the markets at
bay. But theyve never quite done
enough. So the emerging fire has
jumped the firewall each time.
With that in mind, I ask whether
his dogged determination to cut red
tape can seem a little futile when pit-
ted against the storm clouds gather-
ing over the Eurozone. On the
contrary, he argues that the Euro cri-
sis shows exactly why we need to
make the UK a better place to do
business, particularly in areas like
deregulation, infrastructure and plan-
ning. The Eurozone crisis doesnt
alter the prescription, he says. It just
means we must do even more of the
same.
Interview
19 CITYA.M. 17 OCTOBER 2011
WORDS BY DAVID CROW
CBI boss John Cridland says the Euro
crisis means it is even more urgent for
the UK to boost its competitiveness
John Cridland
became CBI
director-general in
November 2010
Picture: Getty
Age: 50
Work: A life-long lobbyist, Cridland
joined the CBI as a policy adviser in
1982, rising to become director of
environmental affairs and of human
resources policy. He was appointed
deputy director-general in 2000 and
took the top role in November 2010.
External roles: Cridland serves as a UK
commissioner for employment and
skills and is on the board of business
in the community. He was a member of
the low pay commission from 1997 to
2007 and vice-chair of the national
learning and skills council from 2007
to 2010. In 2006 he received a CBE
for services to business.
Education: Read history at Christs
College, Cambridge.
Family: Married, two children
Lives: Bedfordshire
CV | JOHN CRIDLAND, DIRECTOR-GENERAL OF THE CBI
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THE fate of 11 giant out of town stores
owned by Best Buy and Carphone
Warehouse is close to being decided,
with a sale or closure the most likely
outcome.
The joint venture partners this
summer froze the planned opening
of a string of new stores and launched
a review into the existing ones after
they recorded a greater than expect-
ed loss in their first year.
Best Buy and Carphone, who each
own 50 per cent of the venture, are
said to be thrashing out the details,
having previously said they want the
issue tied up this autumn.
It is understood US-based Best Buy
is biding its time to get a fuller pic-
ture of the performance of its native
operations before making a final deci-
sion on the venture.
It is unlikely a rival would be will-
ing to buy the entire portfolio of
stores given the choppy economic
climate but an individual sale of the
most viable units is on the cards,
with the remainder likely to be shut-
tered.
Another option being considered is
a downsizing of the existing stores,
mirroring the tactics of Best Buy in
the US, where there has been a dip in
demand for flatscreen TVs and desk-
top PCs.
Regardless of the future of the big
box stores, Carphone and Best Buy
will continue their successful part-
nership in the US, where a string of
mobile phone concession stalls have
seen revenues surge.
Crunch time
for Best Buys
UK venture
RAIL PASSENGER numbers grew by
more than five per cent over the sum-
mer, helped by more travellers switch-
ing to public transport as high petrol
prices force drivers to leave their cars
at home.
Figures from the Association of
Train Operating Companies (ATOC)
show that the number of journeys
taken in the third quarter of this year
rose by 5.3 per cent to 314.3m, up from
298.4 in the same period last year.
The number of train journeys is set
to reach 1.3bn for a second consecutive
year. In 2010 ATOC reported that pas-
senger numbers reached 1.3bn the
highest peacetime level since 1928.
Despite difficult financial times,
more people are choosing to go by
train when travelling to work and on
business, visiting friends and family,
or just taking a well-earned break,
Michael Roberts, the chief executive of
ATOC, said.
The sale of cheap advance tickets
for those who book early have almost
doubled in the last four years, with
almost a million bought each week,
the association said.
Journeys in London and the South
East grew by 5.8 per cent. The number
of long distance journeys rose by 4 per
cent while regional journeys were up
by 4.4 per cent.
Train journeys
set to return to
peacetime high
Carphone Warehouse boss Charles Dunstone is reviewing the fate of Best Buy in the UK
BY STEVE DINNEEN
RETAIL

TRANSPORT

News
20 CITYA.M. 17 OCTOBER 2011
ANALYSIS l Carphone Warehouse
p
370
360
350
340
10Oct 11 Oct 12Oct 13Oct 14Oct
347.00
14 Oct
News
CITYA.M. 17 OCTOBER 2011 21
HSBC
Antonio Simoes, group head of strategy
and planning, has been appointed to the
new position of head of retail banking
and wealth management, Europe. John
Flint, CEO of HSBC Global Asset
Management, has been appointed as
chief of staff to the group CEO and
group head of strategy and planning, and
Sridhar Chandrasekharan, global head of
wholesale at HSBC Global Asset
Management, has been appointed as
CEO of HSBC Global Asset Management.
All three appointments are effective
from 1 January 2012, subject to board
and regulatory approval.
Russell Investments
The independent financial services firm
has appointed Crispin Lace and Nick
Spencer as directors of the Consulting
and Advisory Services team. Lace joins
from Mercer, where he was a member
of the asset allocation committee, and
Spencer joins from GAM, where he led
the institutional business for UK,
Ireland and the Netherlands.
IP Group
The intellectual property developer
has appointed Mike Humphrey to the
board of non-executive directors.
Humphrey is the group chief executive
of Croda International.
Redefine International
The diversified income property firm has
appointed Greg Clarke as an independ-
ent non-executive director and chairman
designate of the company. Clarke will
succeed the current chairman, Philippe
de Nicolay, who will retire from the
board in November 2011.
Metro Bank
The high street bank has appointed
serial entrepreneur Luke Johnson, cur-
rently chairman of the Giraffe restau-
rant group and Patisserie Valerie, as a
non-executive director.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
The Crown Estate
Ian Marcus has been appointed as a non-executive
of The Crown Estate, effective from 1 January
2012. Marcus is currently chairman of European
real estate investment banking at Credit Suisse,
chairman of the Bank of England Commercial
Property Forum, and chairman of The Princes
Regeneration Trust. Previous roles have included
president of the British Property Federation and
chairman of the Investment Property Forum.
+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
WALL STREET WEEK AHEAD
G20 and US earnings set to be positive catalysts
A
REVIVAL in hopes that the
Eurozone crisis can and will be
contained will continue to spur
stocks higher this morning.
The mood of the market certainly
seems to be leaning towards the posi-
tive, and that will likely be reinforced
by news from Paris at the weekend
that the G20 have agreed that the IMF
should consider new ways to provide
on a case by case basis short-term liq-
uidity to countries facing systemic
shocks.
The FTSE 100 index is called to
open up around 50 points at 5,516.
Germanys DAX 30 index is expected
to open up 61 points at 6,028, and the
French CAC 40 is forecast to open
higher by 30 points at 3,247.
Whilst Europe will inevitably con-
tinue to play its part with market
direction, recent encouraging news
from the US has also been responsible
for the current boost in global stocks.
Retail sales data on Friday rose at
their fastest pace in seven months,
demonstrating how American con-
sumers are shrugging off past con-
cerns about global recession. A wave
of big-name earnings due out this
week could well help push the mar-
kets even higher, with the tone set by
stellar results out from Google on
Thursday. Companies due to report
include Goldman Sachs, Bank of
America, Morgan Stanley, IBM, Coca
Cola and Apple.
Apples shares closed at a record
high, and came within a whisker of
the intraday lifetime high, on Friday
at $422, with sales on the new iPhone
4S expected to reach between two
and two and a half million units fol-
lowing the launch last Friday.
Further evidence that we could be
in early year-end rally mode comes
from the VIX volatility index, which
closed 8 per cent lower, down for a
remarkable ninth day in a row.
Consistently lower levels on the VIX -
the so-called fear index, are often
regarded as heralding a period of
increased risk appetite.
Martin Slaney is director of global prod-
uct management at GFT
MARTIN ON
THE MARKETS
T
HE coming week is likely to be
crucial for the direction of
financial markets until year-
end, with Eurozone stability at
stake as well as the latest test of the
one bright spot for investors, corpo-
rate earnings.
In the case of the Eurozone, there is
talk of a binary moment next week-
end in which a European leaders
summit either comes up with the
goods to assuage concerns about the
debt crisis or disappoints again.
The former might well be taken as
a reason for a sustained rally in
riskier assets such as equities. The lat-
ter would almost certainly spark a
sell off.
A comprehensive plan for solving
the Eurozone debt crisis at the sum-
mit in Brussels has been flagged by
Germany and France, raising expecta-
tions on markets. Some idea of what
is at stake for investors can be seen in
their actions over the past few weeks.
World stocks as measured by MSCI
are up more than 12 per cent since
hitting a low on 4 October.
At the same time, yields of both
long term US bonds and core
Eurozone debt have risen well off
their lows. Part of this is in response
to expectations of a Eurozone debt
roadmap. But it also reflects extreme-
ly bearish positioning throughout the
northern hemispheres summer
months.
Asset allocation polls at the end of
September showed safe-haven cash
holdings at levels that can be a count-
er indicator for a rally. In effect,
investors hold cash so that they can
put it to work quickly if the invest-
ment climate changes which may
be happening.
MARTIN SLANEY
18Jul 5Aug 25Aug 5Oct 15Sep
6,000
5,200
5,600
ANALYSIS l FTSE
5,466.36
14 Oct
18Jul 5Aug 25Aug 4Oct 14Sep
7,500
5,500
6,500
ANALYSIS l DAX
5,967.20
14 Oct
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Whitbread
1,650
1,550
1,450
1,350
Aug Sept Oct
p
1,615.00
14 Oct
WHITBREAD
Analysts at UBS say Costa and Premier Inn owner Whitbread, which reports
rst half results tomorrow, is its most preferred stock in the leisure and tobac-
co sector. The investment bank is forecasting revenues of 889m, ebitda of
183m, and earnings per share of 69.6p. Whitbreads restaurants continue to
drag down on growth but Costa and Premier Inn are performing well. UBS
rates the stock a buy with a price target of 2000p.
DIAGEO
Analysts at ING expect Diageo to report organic sales growth of four per cent
when it updates the markets on rst quarter trading on Wednesday. Most of
the growth will be driven by Latin America, Africa and Asia-Pacic, while
North America could also put in a decent performance. However, ING says
Europe is a black box due to the euro crisis and bad weather hurting beer
sales. ING rates the stock a hold with a target price of 1,294p.
LVMH
Analysts at Helvea expect luxury group LVMH to report ongoing sales growth
when it updates the market on its third quarter tomorrow. It expects the
watch and jewellery divisions to have recorded the best growth, although
prots could be hurt by the strong Swiss franc. Helvea thinks it will take some
time to determine whether the luxury sector can weather the economic tur-
moil. Until then, it rates the stock accumulate with a target price of 140.
ANALYSIS l Diageo PLC
1,300
1,200
1,100
Aug Sept Oct
p
1,292.00
14 Oct
ANALYSIS l LVMH Moet Hennessy Louis Vuitton SA
130
120
110
100
Aug Sept Oct

114.40
14 Oct
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News
22 CITYA.M. 17 OCTOBER 2011
THE owner of Saga and the AA,
Acromas, lost almost 500m last year
as the interest payments on its mas-
sive debt pile took their toll.
Acromas, taken private in June
2007 for 6.3bn by Charterhouse,
Permira and CVC, posted a 458m
pre-tax loss during the 12 months
ended January, 13.4 per cent narrow-
er than a year earlier. It now owes its
creditors 6.6bn, up three per cent.
Andrew Goodsell, Acromas chief
executive, described the results as
robust, with group turnover up
11.4 per cent to 1.84bn, including
953m from Saga and 883m from
the AA.
But operating profit, which rose
31.7 per cent to 241.6m, was effec-
tively wiped out by debt interest pay-
ments of 335.4m. More than 350m
was also rolled up into shareholder
loans.
Acromas, which has long been the
subject of flotation talk, said its busi-
nesses are growing and its debt is
exactly where it should be.
Goodsell said: This robust per-
formance has been achieved against
a very difficult economic backdrop.
As measures taken to reduce the pub-
lic sector deficit begin to take effect,
consumers are starting to feel the
pinch.
Acromas was set up in 2007 after
its private equity owners bought Saga
and the AA in June 2007, funded by
4.8bn of bank borrowings and
1.5bn of shareholder loans.
In July Acromas agreed to buy
Nasdaq-listed Allied Healthcare for
$175m (107m), six months after its
124m acquisition of Nestor
Healthcare.
Debt weighs
on owner of
AA and Saga
ABERDEEN Asset Management is tak-
ing its long-running 8m tax dispute
to a new tribunal hearing.
The claim, which attempts to over-
turn an 8m tax ruling related to an
options scheme used to compensate
chief executive Martin Gilbert and
other senior staff, is expected to be
heard before the Upper Tax Tribunal
later this month.
It comes after Aberdeens appeal to
a lower tribunal failed.
HM Revenue & Customs had origi-
nally demanded the fund pay
10.5m, later reduced to 8m, in
taxes and national insurance relating
to the payment of bonuses through
discounted share options between
2000 and 2003.
The fund manager, which has a
stock market value of 2.17bn, insists
it acted within the law.
Recent figures showed clients
pulled 800m from Aberdeens funds
in the two months to the end of
August amid market volatility. Assets
under management fell to 176.9bn.
Strong demand for global emerg-
ing market and global equities
strategies and other higher-margin
pooled funds is expected to push
annual profits to the top end of ana-
lysts forecast range of 262m and
297m.
Aberdeen to
pursue tax row
with HMRC
The AA provides nearly half of Acromas revenue Picture: Alamyre
BY PETER EDWARDS
PRIVATE EQUITY

ASSET MANAGEMENT

Took on 1,500 staff last year, which grew the


company 12 per cent to more than 14,000.
It cut the pension deficit 54.6 per cent to
87.8m after capping the benefits available to
workers in the AA fund.
FAST FACTS | ACROMAS
London 2012 TIME TO GET READY
Businesses need to plan for the Olympics
if they want the summer to run smoothly
Firms must bear in mind that every day and every part of town will be different, says Marc Sidwell
T
. HERES no general piece of
advice. Im with Transport
for Londons no-nonsense
commissioner, Peter Hendy,
and if he has one message
he wants people to grasp about
public transport during next years
Olympic and Paralympic Games, it
is that every day and every part of
town will be different.
Its unhelpful to lump the
whole of London together. If you
live in Harrow and work in
Heathrow, you probably dont need
to make any changes. If you live in
North Greenwich and work in
Stratford, well, youll want to look
at whats going on each day.
Not only every day but different
times of day will be different. For
instance, road racing locations for
events including cycling,
marathon and triathlons will vary.
Happily, TfL have already made all
of this information online for you
to check, in the Travel Advice for
Business section of the London
2012 website. Theres also a dedi-
cated area of their own website for
Olympic transport advice (see
panel, right, for more informa-
tion).
BEAT THE QUEUES
Hendy stresses that while the
descent of the whole worlds sup-
ply of sports fans on Londons pub-
lic transport system will inevitably
make it unusually busy, that does-
nt mean that locals cant enjoy
the Games or that the disruptions
to their work need to be onerous.
If you come into Canary Wharf on
the Jubilee Line very early as some
do, theres not going to be a prob-
lem at half five or six in the morn-
ing. If you normally head back at
five in the evening, there could be
an issue. Maybe there are some
days when youre better off going
to the pub, watching events on the
telly and having a beer before you
head home. Its about sensible
alterations, not getting out of
London full stop.
That said, its clear that City
workers will be some of the most
affected by these East London
Games. Canary Wharf, Canada
Water, Bank/Monument and
London Bridge are all cited by
Hendy as likely hotspots.
Employers need to think about
what will make it easier for them.
Can some back office staff work
from home? Some people will
want to take their holiday, espe-
cially if they have tickets for excit-
ing events. It might be a good
moment to improve options for
flexible working in the office. If
your business is on the Olympic
Route Network, you need to think
about deliveries get all your pho-
tocopier paper in advance. Its
horses for courses, and were offer-
ing a lot of advice for companies
big and small.
A sign that the campaign for
awareness is getting through is the
number of firms signed up for site-
specific advice from TfL.
Businesses collectively employing
half a million staff are on board
(more than 215,000 of those staff
are from banking and finance
firms alone), and in Canary Wharf,
over 80 per cent of businesses are
now covered. Our aim, says
Hendy, is that by this time next
year it will be so unusual not to
have a plan that no one says, what
a scandal TfL didnt tell them;
they say, God, they must be stu-
pid.
Hendy is plain about where he
sees responsibility lying for these
preparations. Were not nannying
people. In the end, were relying on
Londoners, on those people whose
job is wealth creation, to take a
view on whats going to happen
and adjust to make the best of it.
And the evidence is that they are
doing exactly that.
NINE MONTHS TO GO
Meanwhile, TfL is doing its part.
With nine months to go, all the
major capital works are done.
From March, street works will be
banned on the Olympic Road
Network. And non-essential staff
will be redeployed from the
Westminster office in Games time.
As Hendy says, we want transport
to fade into the background as an
Olympic subject. We cant wave a
magic wand, but I think people
will understand in 2012 that we
will be doing our best in difficult
circumstances.
For now, though, he needs
Londoners to get on board and
make their own preparations.
Weve made lots and lots of infor-
mation available. If youre a big
firm, well talk with you one-on-
one, small firms were talking to in
groups. You can sign up to the
workshops easily and theyre run-
ning regularly. A lot of it is com-
mon sense. Every day will be
different. Its not about working
from home for the duration, but
just about having a bit of flexibili-
ty. We want business to do well in
the Games: hospitality and service
businesses should do very well.
Just think now about how it might
affect your business, look at the
hotspot maps to see if anything is
in your area. Think about how you
can carry on and make the most of
it. See the information weve made
available and develop a plan.
Transport for London has created a
website providing a one-stop shop for
information on transport advice for
business: www.tf l.gov.uk/2012. You can
also find more information online at
www.london2012.com/get-involved/busi-
ness-network/travel-advice-for-business/
lLondon 2012 has been planned as a
public transport Games. Spectators are
encouraged to cycle, walk or use public
transport and event tickets include a
Travelcard.
lYou can check if your business is in
an affected area by looking at the online
hotspot maps at:
www.london2012.com/get-
involved/business-network/travel-
advice-for-business/are-you-in-an-affect
ed-area/.
lIf your business is in an affected area
and employs over 200 employees in
that location, or if it has multiple affect-
ed sites with over 200 employees
across them all, it should be eligible for
free, personalised advice from a travel
adviser. To check, send an email to:
keeponrunning@london2012.com with
your contact details, the organisations
address and the number of staff.
lSmaller firms are also eligible for
help, and can sign up for free, two-hour
workshops on a range of Olympic plan-
ning issues. To sign up, send an email to
keeponrunning@london2012.com with
your business location, sector, number
of employees and the session you wish
to attend.
The following SME workshops are now
available:
19 Oct: 9-11am & 2-4pm, Hammersmith
8 Nov: 9-11am & 2-4pm, Greenwich
9 Nov: 10am-12 & 4-6pm, Westminster
Additional dates and locations will be
posted online as they are confirmed.
lFull information on Olympic sched-
ules, maps of hotspots and the Olympic
Road Network as well as online tools to
help a business plan for 2012 can all be
found by visiting www.tfl.gov.uk/2012.
LONDON 2012 | BUSINESS PLANS
Peter Hendy (right) recommends a
trip to the pub after work in 2012
Picture: REUTERS
23
M
Y COMPANY is currently looking for
an intern (dont all apply at once). The
reason is simple. We have a job that
needs doing that we cannot get our
clients to pay us for and, in the current climate,
we cannot afford to pay an experienced person
to do it. The work we want doing would involve
supervision by a senior manager and would
involve learning a set of skills that is very
saleable in the labour market. Now, if we accept
the argument that unpaid internships are
wrong then this work will go undone, to the
minor detriment of our business, and nobody
will get that valuable experience. Who bene-
fits from that?
There have been angry voices raised
against internships recently from people
who feel that they are badly treated and
exploited. I am not going to defend every
unpaid internship, as I am sure that
there are bad employers of interns as well
as good ones (welcome to the world of
work). However, in principle, internship
can play a useful role for some people in
some circumstances. So what are the
objectors saying and how should we
assess internships?
Some people claim that internship is a
form of slave labour, yet there is nothing
compulsory about it. Young people make
a rational choice to become interns. The
calculation is that if you are prepared to
invest some time and effort there may be a
big pay-off further down the road, through
access into highly competitive and popular
trades or professions.
Internships dont replace paid employ-
ment. The interns are too inexperienced to be
worth paying in most cases. It is a kind of
informal modern apprenticeship where it is
recognised that most of the value in the rela-
tionship is gained by the apprentice rather
than the master. One factor which actually
deters businesses taking on more interns is
that to be of any use they require time spent
on showing them what to do and managing
them, which amounts to a hidden cost.
Interns gain real benefits from creating con-
tacts and getting experience that would proba-
bly not be open to them otherwise. The time
invested by businesses on training them, how-
ever little it may be, is not necessarily repaid
once interns have some experience, they are
more likely to get a job, and not necessarily in
the place where they have interned.
Employers are able to gain assessments of
young people before committing to taking
them on, and vice versa, lessening the chances
of mistaken commitments on both sides.
Employers can assess the worth of individuals
and interns can decide relatively informally
whether the particular industry, business or
boss is really for them.
A weakness of internships is that they are
often restricted to those whose families have
prior contacts in certain professions. If intern-
ships were formalised and legalised then there
would be more opportunities for young people
who may be currently excluded because they
are outside the current networks of friends and
families. A nationwide internship/apprentice-
ship scheme would be far preferable to young
people going straight from school or college
onto benefits.
Some of the criticism of internships has
come through the widespread practice of using
unpaid labour in the creative and media indus-
tries, especially in London. I am afraid that far
more young people think they can pursue a
glamorous career in fields like journalism than
can ever be the case. In effect, the mass of
wannabe media stars has created a situation
where employers in these industries are inun-
dated with talented youth who are willing to
work for nothing. It would be helpful to the UK
economy, as well as to the young people them-
selves, if more of them were prepared to learn
skills in engineering, technology and science.
I also believe that there is a value to young
people in having to accept that life can be a bit
of a struggle. The years from 18 to, say, 24
should be a little tough. After all, most kids in
our society have been sheltered until then from
having to earn a living. If you are a student, that
can carry on into your early twenties. There is a
whiff of over-entitlement from some of those
who complain about internships. I think it is a
mistake, for the same reason, to enable young
people to leave school and go straight onto the
dole. It would be better for them to have no
access to dole money until they reach 24.
Of course, with youth unemployment run-
ning at record highs, more jobs need to be cre-
ated for young people and for all of us, in fact.
But this is a different argument involving
investment and economic growth, not the use
of internships.
Rob Killick is chief executive of cScape, and the
author of the UK After the Recession blog. He is speak-
ing at the debate Interns or Slave Labour at the Battle
of Ideas festival at the Royal College of Art on 30
October, sponsored by City A.M.
www.battleofideas.org.uk
24
The Forum
CITYA.M. 17 OCTOBER 2011
Internships dont replace
paid workers. Interns are
far too inexperienced
Why unpaid internships are
a good thing they help the
young get a foot in the door
cityam.com/forum
ROB KILLICK
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
25
A conference this
week is a chance
to see the positive
side of the sector
Private equity is
emerging as the
friend of Africa
T
HE reputation of the private equity
industry has been under attack once
again. In the UK, troubled private equity
backed companies such as Southern
Cross care homes have been the subject of
high-profile negative press coverage; interna-
tionally, music giant EMI has struggled to serv-
ice its debts. But private equity in emerging
markets is a reminder of the other side of the
story. Firms like mine are focusing on growth
capital investing: finding companies with
potential and helping them achieve scale,
always with a keenly-observed respect for the
bigger picture.
Today, theres wide recognition of the power
of business to do good by doing well. It is no
longer unusual to hear a company talk about
creating good social and environmental out-
comes during the normal course of its busi-
ness. And investors in private equity, too, are
increasingly keen to work with fund managers
who can demonstrate their commitment to
these principles so that they can feel reassured
that their money is being put to good use at
the same time as generating excellent returns.
Given some of the preconceptions over gov-
ernance issues in emerging markets, it might
seem unlikely that countries like Africa and
China can offer up shining examples of best
practice in value-creation for shareholders in
companies that are also growing responsibly.
And yet that is precisely why hundreds of pri-
vate equity professionals are descending on
London this week for an event called Capital
Impact, hosted by the Emerging Markets
Private Equity Association (EMPEA) to share
success stories from their portfolios and to
debate how to keep raising the bar.
From the perspective of economic growth,
emerging economies are leading the world. In
a year when the IMF has downgraded the UKs
2011 growth forecast to 1.1 per cent and the
Eurozone is in crisis, the return potential of
Africa stands in stark contrast: it has enjoyed
10 consecutive years of GDP growth that
exceeds the world average. The IMF is forecast-
ing that seven out of the 10 fastest growing
countries in the world over the next ten years
will be in Africa. Ghana already records as
much as 13 per cent growth and Kenya is fore-
casting a very healthy 5 per cent. The growth is
fuelled by Africas rising middle class driving
demand for goods and the kind of services we
take for granted in more mature markets
bank accounts, mobile phone connectivity,
insurance and it is supported by the conti-
nents abundant natural resources.
Look closely and emerging markets are gen-
erating compelling evidence that it is possible
to grow companies quickly and responsibly
without compromising on their performance.
Returns of 15-20 per cent are not unusual
across the industry, generated from companies
that take their social and environmental obli-
gations very seriously indeed.
Marie-France Mathes is the head of investor rela-
tions at Emerging Capital Partners, a dedicated
Africa growth investor with $1.8bn funds under man-
agement. For examples of the positive impact private
equity can have on emerging market companies and
communities, and for investors, visit EMPEA online:
empea.net/Main-Menu-Category/Case-Studies.aspx
Heathwick critic
Despite Victoria Borwicks
defence of the Heathwick
scheme on Friday [To keep the
economy flying we need more air
capacity], the idea is flawed in
our view. British Airways
already tried the idea of a dual
hub a few years ago and it did
not work, in part because con-
nection times were uncompeti-
tive compared to Paris Charles
de Gaulle and Frankfurt. Even
with a 15-minute, high-speed rail
link, there is no way minimum
connection times of 45 minutes
could be achieved as the
worlds best hubs aim for on
same-terminal connections.
The other logistical issue is bag-
gage. This poses enough of a
challenge for transfers between
Terminal 5 and 3 at Heathrow,
let alone a 35-mile connection.
Our recommendation would be
to introduce mixed mode (using
both runways simultaneously) at
Heathrow, which could increase
capacity by 15 per cent at no
extra capital cost. Then in 2019
a second runway could be built
at Gatwick after the end of the
planning moratorium. Longer-
term, we think the solution is a
new airport in the Thames estu-
ary as championed by Londons
mayor. Let us hope that the
planning inquiry wont take as
long as Heathrow Terminal 5,
which at eight years is a British
record.
Geoff van Klaveren,
Deutsche Bank airlines analyst
RAPID RESPONSES
In association with
MARIE-FRANCE
MATHES
BY MICHAEL BEAR
CITYA.M. 17 OCTOBER 2011
The Forum
B
EING the Lord
Mayor of the
City of London is
an all-consuming
role; in the past 11 and
a half months, I have
visited 40 cities in 22
different countries
across the globe, deliv-
ering around 900
speeches promoting not just the Square Mile, but
the whole of the UK-wide financial and profession-
al services industry.
I came into this job determined to move for-
ward the Citys international agenda and to take
up David Camerons challenge to use commercial
diplomacy as a means through which to strength-
en the bilateral trade and investment relationships
between the UK and its overseas partners.
I would like to think that significant progress
has been made towards achieving these goals and
that we have pushed forward the governments
High Value Opportunities initiative, working hard
to improve links between the City and other
industries in fields such as high-tech, innovation,
creative industries and manufacturing.
One thing that has become abundantly clear
during my time overseas is that the City is still
regarded as the best place in the world to come
to live and work and has retained its ability to
attract investment from across the globe; the City
of London is very much the City of Choice my
theme for the year.
This international reputation for excellence is
something we need to continue to protect and
build upon in order to generate long-term sustain-
able growth in the UK.
With our countries already enjoying a close
business relationship, the current situation with
regards to India illustrates this point perfectly.
More than 700 Indian companies already have
investments in the UK while 12 Indian banks
operate in London and 71 Indian companies are
listed on the London Stock Exchange.
However, this relationship could be stronger.
David Cameron recently announced a target to
double bilateral trade to 24bn by 2015, and I
would like to see even more Indian companies
looking to the UK with its international markets
and reputation for openness as the environment
that best suits their business needs.
With the inevitable reorientation of the global
economy towards the emerging markets in the
East, it is not just inward investment that needs
to be encouraged it is vital that the UK remains
the partner of choice for these countries in the
decades to come.
The past year has seen some significant socioe-
conomic developments in India not least the
announcement that the government is aiming to
spend $1 trillion on infrastructure development by
2017 in an effort to sustain the incredible pace
of growth seen over the past decade, and to pro-
vide vital services for the huge numbers of people
who are migrating to Indias cities.
The City has a huge amount of experience in
advising, financing, structuring and delivering
infrastructure deals across the world, and UK
firms are perfectly positioned to play a key role in
helping India to achieve its ambitious goals both
for 2017 and beyond.
By working together in such a manner, the UK
and India can enjoy the mutual benefits of our
long-standing business relationship and help gen-
erate jobs and growth not only in our own coun-
tries but across the globe.
Michael Bear is the Lord Mayor of the City of
London.
The City needs to stay
the worlds top choice
Email: theforum@cityam.com
Twitter: @cityamforum
W
EDNESDAY will see Sports
Direct kick-off its figures with
a trading statement, and it
seems that expectations are
good. Despite the retail slump, its pro-
jected earnings growth is 20 per cent a
year for the next two years. Broker
Panmure Gordon recently put a 300p
price target on it. Capital Spreads
quotes 230.6p-232.8p.
Xstrata gives a trading update on
Tuesday and investors will be hoping to
hear that the mining giant is continuing
to see good earnings momentum,
despite the dodgy looking picture for
global growth. Many investors believe
miners are heavily oversold, so there
could be further upside. Capital Spreads
quotes 976.9p-978.8p.
The upward trend thats been sup-
porting Bellways share price should
hopefully continue after its earnings
release tomorrow.
With 9 per cent more new homes
being registered in the first half and a
reported optimistic interest from the
National House Building Council for the
second half, shareholders will be hoping
that this update is going to blow the
roof off the share price. Capital Spreads
quotes a price of 678.6p-681.9p.
The market seems to be echoing
Richard Glynns view on Ladbrokes
pulling out of the Sporting Bet talks that
sometimes the best deals you do are
the ones you dont as its share price has
climbed some 12 per cent since the
announcement. Its shares tend to put
the blinkers on sometimes and trade in a
range, and now they are over the 150
day exponential moving average (EMA)
it could run in a new range between
130p-140p for a while. Look to play the
edges of this range. Spread Co offers
133.58p-134.18p on Ladbrokes.
Craig Drake
FTSE 100:
Trading in
a channel
F
OR weeks the FTSE 100 has been
trading in a channel proffering
clues on price action for spread
betters. The UK index has certain-
ly seen its fair share of ups and downs
over the years. From its 1984 base level
of 1,000 it peaked at 6,950.6 on 30
December 1999. The financial crisis
saw a sharp fall and the rebound was
short-lived. But outside these big
moves there have been easier trades.
RANGEBOUND
Following the sharp sell off at the
beginning of August, the FTSE 100 has
been ranging between 4,800 and
5,400, says Angus Campbell of Capital
Spreads. Joshua Raymond of City
Index notes that the FTSE 100 had
been struggling to overcome resist-
ance at 5,450, which was proving to be
a large hurdle for UK large cap shares.
IG Indexs David Jones says it was trad-
ing in a channel for about six weeks,
although it did have a brief attempt,
which failed, to break below in early
October. According to Campbell, the
index attempted on six occasions to
get back above the resistance with
three clear failures, one in the middle
of August, one at the beginning of
September and the final one in the
middle of September.
CASHING IN
Spreadcos Ian OSullivan says FTSE
range traders have been having a blast
with the way the FTSE has moved for
the past two months. When prices
The UK index offers a model
for traders, writes Philip Salter
The FTSE has put
other trades in the
shade
Picture: GETTY
IMAGES
THE WEEK AHEAD in association with
COMPANY NEWS
l On Wednesday, Diageo will hold its
AGM where it will make its interim man-
agement statement. If the 1.6bn that
the drinks company spent on emerging
market acquisitions has paid off, then
shareholders will be celebrating with dou-
bles all round.
l In Petrofacs interim management
statement on Thursday, it will be hoping
to build on Augusts robust results.
ECONOMICS
l The powers that be have decreed this
to be both National Ethical Investment
Week and National Financial Planning
Week.
l Tomorrow, the ONS will release the
consumer price index figures for
September. Though the number is expect-
ed to exceed the 4.5 per cent August fig-
ure, it will be interesting to see whether it
will overshoot forecasts.
ECONOMICS
l On Wednesday, the Bank of England's
Monetary Policy Committee will release
its minutes for October. Earlier in the
month it embarked on a second round of
quantitative easing, but the minutes will
show whether the decision to do so was
taken unanimously.
POLITICAL NEWS
l Slovak President Ivan Gasparovic will
begin talks today with political parties
with a view to forming an interim cabinet
following the fall of the government.
l As the campaign for the nomination for
the Republican ticket for the 2012 US
Presidential election hots up, this week
the Mitt Romney campaign will be head-
ing to Iowa to drum up support.
l This week Gus ODonnell will present
evidence to Prime Minister David
Cameron following the scandal that
forced the resignation of Liam Fox.
26
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THE TIPSTER
KICK-OFF
WITH A
WINNER
move in a recognisable pattern,
traders can better predict the direc-
tion and strength of swings. The
longer the channel remains, the hard-
er it is for the price to burst its banks.
As such, when markets are stuck in a
trading range, it can create short-term
trading opportunities with relatively
low risk allowances, explains
T
HE Eurozone is in dire need of a quick
capital injection, perhaps 2 trillion,
says economist Nouriel Roubini.
Roubini is not the only economist
alarmed by the Eurozones banking system.
Even outgoing ECB head Jean-Claude
Trichet said recently that the systemic cri-
sis must be decisively tackled, as the inter-
connectedness threatens the Eurozones
financial stability, and has negative reper-
cussions well beyond.
One criticism has been that even the
enhanced European Financial Stability
Facility (EFSF) wont sufficiently accom-
modate potential large losses. There have
been numerous proposals to shore it up
the most recent was that the EFSF would
offer up to 40 per cent guarantees on
sovereign bond losses, essentially insuring
the fund. Insurance analysts say that such
a plan could effectively leverage the
resources of the EFSF to 2,900bn.
This year alone, the aggregate value of
banking shares has been trimmed by 25
per cent, with Italian and French banks
losing 37 and 33 per cent, respectively. Of
significant concern are issues of bank
funding. First, consider recent activity in
the Eurozones sovereign bond markets;
witness the ever-widening spreads
between German bunds and Italian or
French bonds. The second issue is funding
duration analysts point out that as fund-
ing terms are consistently shortened and
banks roll over more debt each day, profit
margins will be squeezed.
One thing is absolutely certain: policy-
makers must pack away the peashooters
because the Eurozone needs what Prime
Minister David Cameron calls a financial
bazooka, and thats exactly what markets
expect.
SIGNS OF OPTIMISM
Current market sentiment suggests that
investors feel they are reliving the night-
mare of the 2008 credit crisis, with the
same rising funding costs, the same stress-
es to the financial system and the same
cravings for large-scale quantitative eas-
ing.
With the Federal Reserves activation of
Operation Twist suggesting it is one step
closer to renewing its real asset purchase
program, and the Bank of Englands
announcement of additional bond purchas-
es of 75bn, it seems that the ECB is the
missing link in the whole global stimulus
scheme.
However, if the 2008 nightmare scenario
is being repeated, then we are on the verge
of a 10-15 per cent rally in European equi-
ties. Dependent of course on the ECB.
Another consideration is that more quanti-
tative easing (QE) by the Fed and the ECB
will signal, once and for all, that the fore-
most central banks are ready to create a
bottom for the markets each and every
time that they deteriorate. And when the
bottom is clearly marked, markets will
respond positively. The question is how
long until the ECB agrees?
THE AVERAGE TRADERS VIEW
When analysing the aggregation of traders
among the eToro investment community,
and comparing that data to their targets
from a week earlier, it is evident that
eTorians were quite accurate with their
predictions in targeting a rather aggressive
adjustment in the euro. However, now that
the euro has reached its target of $1.374,
traders have reversed course and turned
bearish on the currency, with most activity
concentrated on short euro-dollar expo-
sure, with total net short exposure on the
euro of 50,970 positions and a ratio of
more than 3.5 times more short than long
positions. The traders aggregated target
for the pair is now $1.35, which is a rather
moderate correction, and $1.4 is recog-
nised as the pivot or weighted average
stop loss.
From this analysis we have learned two
important things. First, that eToro traders
unanimously believe that the euro is
exposed to a correction after rallying all
the way from the $1.31 area. The second is
that an upward break of $1.4 a key, piv-
otal level for eToro traders could melt
mid-term selling pressure on the currencies
and pave the way for a broader correction.
Meanwhile, downward potential remains
limited, above the bearish support level of
$1.3 which the eToro community marked
last week as their support level. Thus, $1.4
is the target to watch for.
Asset Allocation
%
EUR/USD
30%
GBP/USD
14%
GOLD/USD
12%
AUD/USD
10%
GBP/JPY
9%
EUR/JPY
8%
OTHERS
17%
LOOKING FOR
SIGNS OF HOPE
LIOR ALKALAY
SENIOR RESEARCH ANALYST, ETORO
ANALYSIS l FTSE 100 trading in a channel
May Apr Mar Jun Aug Jul Sep Oct
5,000
4,800
5,200
5,600
5,400
5,800
6,000
6,200
4930
5450
Source: City Index
27
Raymond. Jones says one way of
making money has clearly been to
just play the channel, by buying
into weakness and selling into
strength. OSullivan says that this
trade gave about 5 short entry
points and 6 longs before the final
rally took it out of range. These
conditions are much easier for
clients to make money as history
repeats itself, adds Campbell,
although he cautions its when a
market breaks out from a trading
range that people are surprised.
Raymond says City Index saw
clients buy the FTSE each time it
has headed towards the 4,950 level
and sell it each time it reached
5,400-5,450. Thus, when spread bet-
ters were buying the FTSE at
around 4,950, they were expecting
a bounce back towards the upper
levels of the FTSEs trading range,
says Raymond. They were placing a
stop loss below 4,850, as a break
towards there could indicate a neg-
ative break out of the FTSEs cur-
rent range. For those spread betters
short selling the UK index at the
5,400 level, Raymond saw stop loss-
es set at around 5,500, as a concert-
ed break above here would indicate
a bullish break out of the range.
REMEMBER, REMEMBER
In closing at 5,466 on Friday, the
channel was broken. OSullivan
now expects 5,400 to offer strong
support on the way back down. As
such, he thinks traders should
look to get long on any dips to
around 5,370-5,400 with stops
around 5,320 in case it reverts to
the lower part of the range.
Raymond thinks a consolidation
above the 5,450 level could pave
the way for a potential consistent
break to the next upside target of
5,600. Jones says: Traditionally a
break out of a range as we have
seen in recent days would suggest a
reasonably significant change in
sentiment, with further gains to
the upside to come. Europes
enduring debt crisis will clearly
weigh on the FTSE going forward,
with Jones warning sentiment is
still clearly vulnerable to a shock.
But he adds: For now at least this
is the most optimistic the FTSE has
looked for some months.
Campbell says we saw a similar
channel earlier in the year when
the market traded between 6,100
and 5,800. Those who cannot
remember the past are condemned
to fulfill it, said philosopher
George Santayana. Although this
particular FTSE trade has finished,
similar channels will form in due
course. When they do, it will be the
right time to take the plunge.
BAE Systems . . . . . .285.5 3.4 369.9 248.1
Chemring Group . . . .540.5 -6.0 736.5 485.0
Cobham . . . . . . . . . . .170.5 1.5 245.6 168.5
Meggitt . . . . . . . . . . . .367.0 5.4 397.6 303.9
QinetiQ Group . . . . . .117.5 0.9 136.3 96.7
RoIIs-Royce Group . .695.5 7.5 698.5 557.5
Senior . . . . . . . . . . . . .159.3 -2.5 190.6 131.1
UItra EIectronics . . .1630.0 -3.0 1895.0 1305.0
GKN . . . . . . . . . . . . . .197.6 7.1 245.0 157.0
BarcIays . . . . . . . . . . .176.1 2.9 333.6 138.9
HSBC HoIdings . . . . .525.0 1.9 730.9 473.6
LIoyds Banking Gr . . .33.3 -1.0 72.2 27.6
RoyaI Bank of Sco . . .24.3 0.1 49.0 19.7
Standard Chartere .1418.5 7.0 1950.0 1169.5
AG Barr . . . . . . . . . .1222.0 5.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .317.0 -0.7 503.5 289.9
Diageo . . . . . . . . . . .1292.0 -3.5 1307.0 1112.0
SABMiIIer . . . . . . . . .2271.5 12.5 2340.0 1979.0
AZ EIectronic Mat . . .246.4 -2.3 338.1 206.1
Croda Internation . .1813.0 47.0 2081.0 1367.0
EIementis . . . . . . . . . .135.3 -0.5 187.4 104.8
Johnson Matthey . .1780.0 39.0 2119.0 1523.0
Victrex . . . . . . . . . . .1184.0 19.0 1590.0 1025.0
YuIe Catto & Co . . . . .171.0 7.6 253.0 148.0
LON GD ONCE FIX AM...........1676.00 3.00
SILVER LDN FIX AM ..................31.89 0.35
MAPLE LEAF 1 OZ ....................34.67 0.44
LON PLATINUM AM................1546.00 5.00
LON PALLADIUM AM...............605.00 0.00
ALUMINIUM CASH .................2177.50 -24.50
COPPER CASH ......................7327.50 -87.50
LEAD CASH...........................1995.50 -13.50
NICKEL CASH......................18470.00 -450.00
TIN CASH.............................22490.00 140.00
ZINC CASH ............................1889.00 -40.00
BRENT SPOT INDEX................110.67 -1.23
SOYA .....................................1257.00 17.50
COCOA..................................2630.00 -3.00
COFFEE...................................237.65 8.20
KRUG.....................................1733.20 12.20
WHEAT ....................................146.38 0.15
AIR LIQUIDE........................................92.43 -0.48 100.65 80.90
ALLIANZ..............................................78.00 -0.81 108.85 56.16
ANHEUS-BUSCH INBEV ....................40.00 0.55 46.33 33.85
ARCELORMITTAL...............................14.36 0.49 28.55 10.47
AXA......................................................10.94 -0.07 16.16 7.88
BANCO SANTANDER...........................6.23 -0.07 9.67 5.15
BASF SE..............................................51.31 0.76 70.22 42.19
BAYER.................................................44.85 0.61 59.44 35.36
BBVA......................................................6.46 -0.04 9.82 4.94
BMW ....................................................56.44 1.62 73.85 43.49
BNP PARIBAS.....................................32.25 -1.10 59.93 22.72
CARREFOUR ......................................17.25 0.40 35.29 14.66
CRH PLC .............................................12.90 0.11 17.40 10.28
DAIMLER.............................................37.82 0.66 59.09 30.52
DANONE..............................................46.31 -0.07 53.16 41.92
DEU.BOERSE OFFRE ........................41.91 0.07 55.75 35.46
DEUTSCHE BANK..............................27.31 -0.34 48.70 20.79
DEUTSCHE TELEKOM.........................9.55 0.11 11.38 7.88
E.ON.....................................................17.63 0.10 25.54 12.50
ENEL......................................................3.56 0.08 4.86 2.81
ENI .......................................................15.65 0.68 18.66 11.83
FRANCE TELECOM............................13.19 0.12 17.45 11.12
GDF SUEZ ...........................................23.57 0.44 30.05 18.32
GENERALI ASS...................................12.74 0.23 17.05 10.34
IBERDROLA..........................................5.33 0.01 6.50 4.29
INDITEX ...............................................67.21 -0.09 67.86 50.92
ING GROEP CVA...................................6.02 0.11 9.50 4.21
INTESA SANPAOLO.............................1.30 0.01 2.53 0.85
KON.PHILIPS ELECTR.......................14.80 0.26 25.45 12.01
L'OREAL..............................................78.50 1.11 91.24 68.83
LVMH..................................................114.40 0.90 132.65 94.16
MUNICH RE.........................................97.84 0.69 126.00 77.80
NOKIA....................................................4.54 0.03 8.49 3.33
REPSOL YPF.......................................22.10 0.42 24.90 17.31
RWE.....................................................30.27 -0.05 55.88 21.22
SAINT-GOBAIN...................................33.57 0.18 47.64 26.07
SANOFI ................................................50.87 0.41 56.82 42.85
SAP......................................................41.40 0.85 46.15 32.88
SCHNEIDER ELECTRIC.....................46.12 0.79 61.83 35.94
SIEMENS .............................................74.84 0.94 99.39 62.13
SOCIETE GENERALE.........................20.84 -0.77 52.70 14.32
TELECOM ITALIA..................................0.90 0.01 1.16 0.70
TELEFONICA ......................................15.30 0.14 19.69 12.50
TOTAL..................................................37.22 0.80 44.55 29.40
UNIBAIL-RODAMCO SE...................148.00 2.25 162.95 124.05
UNICREDIT............................................0.95 0.02 2.03 0.64
UNILEVER CVA...................................24.62 0.56 24.90 20.90
VINCI ....................................................35.57 0.76 45.48 29.49
VIVENDI ...............................................16.54 0.18 22.07 14.10
VOLKSWAGEN VORZ.......................114.30 2.30 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5466.36 62.98 1.17
FTSE 250 INDEX . . . . . . . 10338.51 107.99 1.06
FTSE UK ALL SHARE . . . . 2821.04 31.90 1.14
FTSE AIMALL SH . . . . . . . . 715.72 7.57 1.07
DOWJONES INDUS 30 . . 11644.49 166.36 1.45
S&P 500 . . . . . . . . . . . . . . . 1224.58 20.92 1.74
NASDAQ COMPOSITE . . . 2667.85 47.61 1.82
FTSEUROFIRST 300 . . . . . . 975.52 9.15 0.95
NIKKEI 225 AVERAGE. . . . 8747.96 -75.29 -0.85
DAX 30 PERFORMANCE. . 5967.20 52.36 0.89
CAC 40 . . . . . . . . . . . . . . . . 3217.89 30.95 0.97
SHANGHAI SE INDEX . . . . 2431.38 -7.42 -0.30
HANG SENG. . . . . . . . . . . 18501.79 -256.02 -1.36
S&P/ASX 20 INDEX . . . . . . 2542.50 -21.30 -0.83
ASX ALL ORDINARIES . . . 4269.00 -37.00 -0.86
BOVESPA SAO PAOLO. . 55030.45 429.38 0.79
ISEQ OVERALL INDEX . . . 2604.62 32.98 1.28
STI . . . . . . . . . . . . . . . . . . . . 2744.17 10.20 0.37
IGBM. . . . . . . . . . . . . . . . . . . 903.20 2.57 0.29
SWISS MARKET INDEX. . . 5761.12 47.95 0.84
Price Chg %chg
3M........................................................78.89 1.09 98.19 68.63
ABBOTT LABS ...................................52.73 0.58 54.24 45.07
ALCOA ................................................10.26 0.16 18.47 8.45
ALTRIA GROUP..................................27.67 0.06 28.14 23.20
AMAZON.COM..................................246.71 10.56 246.71 153.85
AMERICAN EXPRESS........................46.10 -0.23 53.80 38.74
AMGEN INC.........................................57.49 0.51 61.53 47.66
APPLE...............................................422.00 13.57 422.86 297.76
AT&T....................................................29.17 0.07 31.94 27.20
BANK OF AMERICA.............................6.19 -0.03 15.31 5.13
BERKSHIRE HATAW B.......................74.75 0.70 87.65 65.35
BOEING CO.........................................63.89 0.36 80.65 56.01
BRISTOL MYERS SQUI ......................32.44 -0.32 33.20 20.05
CATERPILLAR....................................84.09 2.65 116.55 67.54
CHEVRON.........................................100.47 2.68 109.94 80.41
CISCO SYSTEMS................................17.55 0.13 24.60 13.30
CITIGROUP.........................................28.40 0.76 51.50 21.40
COCA-COLA.......................................67.85 0.45 71.77 59.66
COLGATE PALMOLIVE......................92.34 1.23 94.89 74.39
COMCAST CLASS A..........................23.94 0.38 27.16 17.97
CONOCOPHILLIPS.............................68.99 1.95 81.80 58.37
DU PONT(EI) DE NMR........................45.09 1.32 57.00 37.10
EXXON MOBIL....................................78.11 1.74 88.23 63.47
GENERAL ELECTRIC.........................16.60 0.38 21.65 14.02
GOOGLE A........................................591.68 32.69 642.96 473.02
HEWLETT PACKARD.........................26.11 0.48 49.39 19.92
HOME DEPOT.....................................35.05 0.64 39.38 28.13
IBM.....................................................190.53 3.71 190.53 136.70
INTEL CORP .......................................23.50 0.11 26.78 18.90
J.P.MORGAN CHASE.........................31.89 0.29 48.36 27.85
JOHNSON & JOHNSON.....................64.72 0.49 68.05 57.50
KRAFT FOODS A................................35.23 0.38 36.30 24.30
MC DONALD'S CORP ........................89.94 0.63 91.22 72.14
MERCK AND CO. NEW......................32.98 0.28 37.68 29.47
MICROSOFT........................................27.27 0.09 29.46 23.65
OCCID. PETROLEUM.........................85.42 3.92 117.89 66.36
ORACLE CORP...................................31.85 0.71 36.50 24.72
PEPSICO.............................................62.24 -0.12 71.89 58.50
PFIZER ................................................19.04 0.28 21.45 16.25
PHILIP MORRIS INTL .........................67.40 0.95 72.74 55.85
PROCTER AND GAMBLE ..................64.89 0.24 67.72 56.57
QUALCOMM INC ................................54.98 1.67 59.84 42.45
SCHLUMBERGER ..............................70.94 3.74 95.64 54.79
TRAVELERS CIES..............................51.27 0.82 64.17 45.97
UNITED TECHNOLOGIE ....................74.64 1.10 91.83 66.87
UNITEDHEALTH GROUP...................47.22 0.69 53.50 34.50
VERIZON COMMS ..............................37.33 0.31 38.95 31.60
WAL-MART STORES..........................55.46 0.44 57.90 48.31
WALT DISNEY CO ..............................34.47 0.92 44.34 28.19
WELLS FARGO & CO.........................26.67 0.55 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 ..................0.878 0.00
LIBOR Euro - 12 months ................2.062 0.00
LIBOR USD - overnight...................0.139 0.00
LIBOR USD - 12 months.................0.909 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 .........................3.200 0.07
European repo rate.........................0.765 -0.02
Euro Euribor ....................................1.174 0.00
The vix index ...................................29.47 -1.23
The baItic dry index ........................2.155 0.02
Markit iBoxx...................................231.79 -0.19
Markit iTraxx..................................178.46 6.62
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.3861 0.0085
C/ 0.8763 0.0021
C/ 107.16 1.2850
/C 1.1441 0.0030
/$ 1.5816 0.0056
/ 122.30 1.1565
FTSE 100
5466.36
62.98
FTSE 250
10338.51
107.99
FTSE ALLSHARE
2821.04
31.90
DOW
11644.49
166.36
NASDAQ
2667.85
47.61
S&P 500
1224.58
20.92
RPC Group . . . . . . . .341.7 -2.9 384.8 215.4
Smiths Group . . . . . .951.5 0.5 1429.0 907.5
Brown (N.) Group . . .273.9 1.7 311.2 252.5
Carpetright . . . . . . . . .515.0 5.0 835.5 472.5
Debenhams . . . . . . . . .65.0 0.3 77.4 51.2
Dignity . . . . . . . . . . . .849.5 0.5 854.5 633.0
Dixons RetaiI . . . . . . .12.5 -0.2 28.5 10.6
DuneImGroup . . . . . .481.6 7.8 550.0 383.9
HaIfords Group . . . . .327.9 3.9 459.7 268.6
Home RetaiI Group . .124.6 -6.8 235.0 105.1
Inchcape . . . . . . . . . .331.3 3.0 425.4 268.1
JD Sports Fashion . .845.0 29.5 1030.0 753.5
Kesa EIectricaIs . . . . .95.0 2.2 174.0 80.0
Kingfisher . . . . . . . . .259.5 -2.8 287.1 217.0
Marks & Spencer G . .332.4 2.3 427.5 301.8
Mothercare . . . . . . . .207.0 -1.4 627.5 179.6
Next . . . . . . . . . . . . .2610.0 1.0 2649.0 1868.0
Sports Direct Int . . . .230.0 -1.0 266.2 125.5
WH Smith . . . . . . . . . .549.0 19.0 550.5 433.8
Smith & Nephew . . . .586.5 5.5 742.0 521.0
Synergy HeaIth . . . . .871.0 6.0 981.0 736.0
Barratt DeveIopme . . .90.3 -0.6 119.0 67.5
BeIIway . . . . . . . . . . . .680.0 -4.5 753.5 511.0
BaIfour Beatty . . . . . .260.2 0.5 357.3 228.6
GaIIiford Try . . . . . . . .433.3 2.9 530.0 276.5
Kier Group . . . . . . . .1376.0 -1.0 1418.0 1097.0
Drax Group . . . . . . . .470.3 8.7 536.5 353.6
SSE . . . . . . . . . . . . . .1352.0 9.0 1423.0 1108.0
Domino Printing S . .522.0 33.8 705.0 434.3
HaIma . . . . . . . . . . . . .345.7 13.7 429.6 306.3
Laird . . . . . . . . . . . . . .145.0 1.7 207.0 127.9
Morgan CrucibIe C . .266.5 4.8 357.1 222.3
Oxford Instrument . .825.0 15.5 1010.0 495.0
Renishaw . . . . . . . . . .897.0 35.0 1886.0 862.0
Spectris . . . . . . . . . .1184.0 10.0 1679.0 1039.0
Aberforth SmaIIer . . .526.0 7.5 714.0 508.5
AIIiance Trust . . . . . .336.7 3.6 392.7 310.2
Bankers Inv Trust . . .376.0 -5.7 428.0 346.5
BH GIobaI Ltd. GB .1205.0 4.0 1210.0 1058.0
BH GIobaI Ltd. US . . . .11.9 -0.1 12.2 10.4
BH Macro Ltd. EUR . . .19.3 -0.1 20.1 15.8
BH Macro Ltd. GBP 1992.0 -3.0 2070.0 1630.0
BH Macro Ltd. USD . . .19.0 0.1 20.1 15.8
BIackRock WorId M .631.5 16.0 815.5 574.5
BIueCrest AIIBIue . . .170.0 0.0 176.2 162.4
British Assets Tr . . . .118.3 1.1 140.5 109.0
British Empire Se . . .449.0 5.4 533.0 409.9
CaIedonia Investm .1549.0 29.0 1928.0 1470.0
City of London In . . .282.2 4.7 306.9 257.0
Dexion AbsoIute L . .134.9 1.1 151.0 130.0
Edinburgh Dragon . .220.9 0.7 262.1 201.4
Edinburgh Inv Tru . . .466.3 4.9 492.2 414.9
EIectra Private E . . .1393.5 3.5 1755.0 1287.0
F&C Inv Trust . . . . . .285.9 3.0 327.9 261.5
FideIity China Sp . . . . .77.0 2.5 128.7 70.0
FideIity European . .1011.0 -3.0 1287.0 912.0
HeraId Inv Trust . . . . .464.0 5.0 545.5 419.0
HICL Infrastructu . . . .116.9 0.3 121.3 112.7
Impax Environment . .93.5 1.5 130.5 88.5
JPMorgan American .830.0 15.0 916.0 721.5
JPMorgan Asian In . .187.0 0.0 250.8 170.1
JPMorgan Emerging .524.0 5.0 639.0 480.1
JPMorgan European .749.0 17.0 983.5 692.5
JPMorgan Indian I . . .371.2 6.0 502.0 350.0
JPMorgan Russian .471.6 14.6 755.0 415.1
Law Debenture Cor . .349.2 8.2 385.0 309.8
MercantiIe Inv Tr . . . .933.0 22.0 1137.0 856.5
Merchants Trust . . . .371.8 6.4 431.8 347.0
Monks Inv Trust . . . .326.2 6.9 367.9 298.1
Murray Income Tru . .621.0 11.0 673.0 568.0
Murray Internatio . . .882.0 10.0 991.5 818.5
PerpetuaI Income . . .253.0 2.1 276.0 234.8
PersonaI Assets T .33310.0 310.0 33725.030210.0
PoIar Cap TechnoI . .336.5 1.8 391.2 299.5
RIT CapitaI Partn . . .1314.0 14.0 1334.0 1127.0
Scottish Inv Trus . . . .448.0 5.0 524.0 417.0
Scottish Mortgage . .654.0 10.5 781.0 586.5
SVG CapitaI . . . . . . . .206.6 1.3 279.8 187.2
TempIe Bar Inv Tr . . .864.0 12.5 952.0 791.0
TempIeton Emergin .550.0 3.0 689.5 497.0
TR Property Inv T . . .168.2 1.0 206.1 150.0
TR Property Inv T . . . .75.5 0.1 94.0 69.5
Witan Inv Trust . . . . .442.0 6.0 533.0 401.5
3i Group . . . . . . . . . . .202.0 -0.9 340.0 184.1
3i Infrastructure . . . . .119.9 0.0 125.2 112.9
Aberdeen Asset Ma .190.0 7.0 240.0 167.8
Ashmore Group . . . .327.8 9.8 420.0 301.5
Brewin DoIphin Ho . .120.7 -1.2 185.4 113.7
CameIIia . . . . . . . . . .9075.0 -25.010950.0 8862.5
CharIes TayIor Co . . .134.1 -2.1 193.0 122.0
City of London Gr . . . .73.0 0.0 93.6 72.0
City of London In . . .336.5 -3.5 461.5 321.3
CIose Brothers Gr . . .730.5 5.5 888.5 656.5
CoIIins Stewart H . . . .62.9 0.4 90.8 59.0
EvoIution Group . . . . .81.3 0.0 94.0 62.3
F&C Asset Managem .62.8 1.8 92.9 56.1
Hargreaves Lansdo .511.0 11.0 646.5 402.5
HeIphire Group . . . . . . .3.1 -0.1 34.0 2.2
Henderson Group . . .121.2 2.1 173.1 95.1
Highway CapitaI . . . . .14.5 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .431.8 8.2 570.5 383.7
IG Group HoIdings . .466.2 -0.9 553.0 393.6
Intermediate Capi . . .236.6 6.0 360.3 197.9
InternationaI Per . . . .254.1 9.3 388.8 196.5
InternationaI Pub . . . .115.5 -0.1 118.3 108.6
Investec . . . . . . . . . . .367.8 1.5 538.0 331.8
IP Group . . . . . . . . . . . .62.3 1.0 66.0 27.9
Jupiter Fund Mana . .224.4 18.6 337.3 184.9
Liontrust Asset M . . . .63.5 -0.5 94.3 63.0
LMS CapitaI . . . . . . . . .60.8 0.3 64.8 44.8
London Finance & . . .22.5 0.0 23.5 16.5
London Stock Exch .923.5 26.0 1076.0 685.5
Lonrho . . . . . . . . . . . . .15.0 1.3 19.8 12.5
Man Group . . . . . . . . .157.6 7.6 311.0 150.0
Paragon Group Of . .157.3 -2.7 206.1 134.6
Provident Financi . .1062.0 8.0 1124.0 728.5
Rathbone Brothers .1040.0 -1.0 1257.0 866.0
Record . . . . . . . . . . . . .24.0 0.8 50.5 20.3
RSM Tenon Group . . .20.8 0.3 66.3 20.3
Schroders . . . . . . . .1345.0 3.0 1922.0 1183.0
Schroders (Non-Vo .1147.0 14.0 1554.0 970.0
TuIIett Prebon . . . . . .366.5 10.1 428.6 327.8
WaIker Crips Grou . . .46.0 0.0 51.5 45.0
BT Group . . . . . . . . . .181.2 0.2 204.1 143.2
CabIe & WireIess . . . .36.1 -0.3 54.7 31.3
CabIe & WireIess . . . .27.2 0.1 76.9 26.5
COLT Group SA . . . . .95.0 -1.8 156.2 95.0
KCOM Group . . . . . . . .70.0 0.7 84.0 47.5
TaIkTaIk TeIecom . . .130.6 1.0 168.3 119.8
TeIecomPIus . . . . . . .728.5 10.5 728.5 375.0
Booker Group . . . . . . .76.5 -0.4 77.9 53.2
Greggs . . . . . . . . . . . .501.5 1.5 550.5 429.1
Morrison (Wm) Sup .304.7 3.4 308.3 262.7
Ocado Group . . . . . . . .90.0 -2.5 285.0 88.1
Sainsbury (J) . . . . . . .298.7 3.4 391.5 263.5
Tesco . . . . . . . . . . . . .409.0 4.3 439.0 356.3
Associated Britis . .1099.0 11.0 1182.0 940.0
Cranswick . . . . . . . . .674.5 -2.0 896.0 588.5
Dairy Crest Group . . .347.5 -0.5 424.9 325.0
Devro . . . . . . . . . . . . .255.0 -8.3 296.9 218.0
Premier Foods . . . . . . . .4.5 0.3 35.1 3.8
Tate & LyIe . . . . . . . . .649.0 12.0 656.0 490.2
UniIever . . . . . . . . . .2109.0 52.0 2133.0 1777.0
Mondi . . . . . . . . . . . . .496.1 -6.9 664.0 450.1
Centrica . . . . . . . . . . .309.9 0.1 345.8 282.6
InternationaI Pow . . .326.5 -0.6 448.6 279.4
NationaI Grid . . . . . . .632.5 -2.5 649.5 530.0
Pennon Group . . . . . .685.0 -1.0 737.5 584.5
Severn Trent . . . . . .1529.0 -20.0 1571.0 1333.0
United UtiIities . . . . .605.5 -3.0 631.5 543.5
Cookson Group . . . . .494.5 8.6 724.5 395.8
DS Smith . . . . . . . . . .196.0 5.0 266.2 163.4
Rexam . . . . . . . . . . . .326.5 4.6 400.0 299.8
Price Chg High Low
BerkeIey Group Ho .1192.0 -27.0 1299.0 789.5
Bovis Homes Group .454.9 1.0 468.3 326.5
Persimmon . . . . . . . .485.3 -0.9 502.5 336.5
Reckitt Benckiser . .3354.0 29.0 3648.0 3015.0
Redrow . . . . . . . . . . . .119.7 1.7 139.0 98.4
TayIor Wimpey . . . . . . .37.0 -0.2 43.3 22.3
Bodycote . . . . . . . . . .273.0 7.4 397.7 225.6
Charter Internati . . . .863.0 -5.0 876.5 538.5
Fenner . . . . . . . . . . . .339.4 0.4 422.5 256.0
IMI . . . . . . . . . . . . . . . .809.5 16.5 1119.0 636.5
MeIrose . . . . . . . . . . .323.0 6.5 365.4 265.7
Northgate . . . . . . . . . .240.0 -2.2 346.7 202.0
Rotork . . . . . . . . . . .1600.0 -13.0 1858.0 1501.0
Spirax-Sarco Engi . .1789.0 -1.0 2063.0 1649.0
Weir Group . . . . . . .1686.0 58.0 2218.0 1375.0
Ferrexpo . . . . . . . . . . .339.0 23.0 499.0 238.7
TaIvivaara Mining . . .218.4 -0.4 622.0 205.0
BBAAviation . . . . . . .179.6 0.5 240.8 156.0
Stobart Group Ltd . . .127.0 1.9 163.6 122.0
AdmiraI Group . . . . .1263.0 23.0 1754.0 1227.0
AmIin . . . . . . . . . . . . .310.8 3.0 427.0 270.6
Huntsworth . . . . . . . . .59.9 -0.6 85.0 56.0
Informa . . . . . . . . . . . .350.9 0.9 461.1 313.9
ITE Group . . . . . . . . . .181.2 -0.8 258.2 157.7
ITV . . . . . . . . . . . . . . . . .65.0 0.6 93.5 51.7
Johnston Press . . . . . . .4.5 0.3 14.0 4.3
MecomGroup . . . . . .140.8 2.3 310.0 135.3
Moneysupermarket. .103.5 3.2 120.4 75.7
Pearson . . . . . . . . . .1173.0 11.0 1207.0 926.0
PerformGroup . . . . .202.0 0.0 234.5 150.0
Reed EIsevier . . . . . .535.0 10.0 590.5 461.3
Rightmove . . . . . . . .1281.0 8.0 1307.0 736.5
STV Group . . . . . . . . . .96.6 -0.9 168.0 90.3
Tarsus Group . . . . . .138.0 -3.5 165.0 112.5
Trinity Mirror . . . . . . . .44.8 0.8 108.0 37.5
UBM . . . . . . . . . . . . . .489.0 6.3 725.0 416.0
UTV Media . . . . . . . . .122.5 -3.3 150.0 101.0
WiImington Group . . .90.4 0.9 183.0 82.5
WPP . . . . . . . . . . . . . .648.5 18.0 846.5 578.0
YeII Group . . . . . . . . . . .3.9 -0.0 16.1 3.7
African Barrick G . . .545.0 12.5 618.5 393.5
AIIied GoId Minin . . .162.4 -3.2 281.3 34.4
AngIo American . . .2361.5 56.0 3437.0 2138.5
AngIo Pacific Gro . . .263.9 0.5 369.3 237.9
Antofagasta . . . . . . .1118.0 40.0 1634.0 900.5
Aquarius PIatinum . .196.6 6.4 419.0 163.1
BeazIey . . . . . . . . . . . .120.1 0.9 139.2 109.6
CatIin Group Ltd. . . .396.9 7.0 421.4 331.5
Hiscox Ltd. . . . . . . . . .387.0 0.2 424.7 340.5
Jardine LIoyd Tho . . .682.0 0.5 709.0 571.5
Lancashire HoIdin . . .718.0 -2.0 733.5 529.0
RSA Insurance Gro . .115.0 1.3 143.5 106.0
Aviva . . . . . . . . . . . . . .339.0 2.3 477.9 275.3
LegaI & GeneraI G . . .105.1 2.1 123.8 89.8
OId MutuaI . . . . . . . . .109.2 0.4 145.2 98.1
Phoenix Group HoI . .522.5 27.9 699.5 451.1
PrudentiaI . . . . . . . . .632.0 13.5 777.0 509.0
ResoIution Ltd. . . . . .273.0 2.0 316.1 211.3
St James's PIace . . . .339.8 3.5 376.0 236.2
Standard Life . . . . . . .213.7 4.4 244.7 172.0
4Imprint Group . . . . .217.0 2.0 295.0 200.0
Aegis Group . . . . . . .138.5 4.1 163.5 119.4
BIoomsbury PubIis . .100.0 1.8 138.0 95.1
British Sky Broad . . .676.0 -3.5 850.0 618.5
Centaur Media . . . . . . .40.5 0.3 73.0 36.0
Chime Communicati .203.5 -4.0 298.5 173.0
Creston . . . . . . . . . . . .84.0 -1.0 121.0 72.0
DaiIy MaiI and Ge . . .406.8 7.6 594.5 343.4
Euromoney Institu . .611.0 -1.0 736.0 522.5
Future . . . . . . . . . . . . . .10.3 -0.3 30.0 9.8
Haynes PubIishing . .213.0 0.0 257.0 203.5
BHP BiIIiton . . . . . . .1947.0 37.0 2631.5 1667.0
Centamin Egypt Lt . .100.7 2.1 197.1 89.7
Eurasian NaturaI . . .662.5 9.5 1125.0 522.0
FresniIIo . . . . . . . . . .1660.0 31.0 2150.0 1223.0
GemDiamonds Ltd. .198.0 1.6 306.0 179.8
GIencore Internat . . .422.5 -13.2 531.1 348.0
HochschiId Mining . .475.0 -5.5 680.0 397.0
Kazakhmys . . . . . . . .900.0 21.5 1671.0 730.0
Kenmare Resources . .40.6 2.0 59.9 18.4
Lonmin . . . . . . . . . . .1097.0 16.0 1983.0 974.5
New WorId Resourc .505.0 8.8 1060.0 410.5
PetropavIovsk . . . . . .680.5 28.5 1165.0 543.5
RandgoId Resource 6485.0 5.0 7215.0 4425.0
Rio Tinto . . . . . . . . .3345.5 62.0 4712.0 2712.5
Vedanta Resources 1213.0 14.0 2559.0 948.0
Xstrata . . . . . . . . . . . .974.1 29.5 1550.0 764.0
Inmarsat . . . . . . . . . . .472.9 -2.4 719.5 389.7
Vodafone Group . . . .173.8 0.2 182.8 155.1
Genesis Emerging . .453.0 0.3 568.0 430.0
Afren . . . . . . . . . . . . . . .90.5 2.9 171.2 73.6
BG Group . . . . . . . . .1343.5 30.5 1564.5 1144.0
BP . . . . . . . . . . . . . . . .416.4 10.6 509.0 363.2
Cairn Energy . . . . . . .298.7 7.2 469.7 261.4
EnQuest . . . . . . . . . . .103.5 1.5 158.5 86.6
Essar Energy . . . . . .282.0 9.4 589.5 235.1
ExiIIon Energy . . . . . .266.8 8.9 469.7 184.2
Heritage OiI . . . . . . . .236.2 3.5 486.0 190.0
Ophir Energy . . . . . . .235.0 -0.7 299.0 184.5
Premier OiI . . . . . . . . .373.0 7.8 535.0 310.0
RoyaI Dutch SheII . .2185.5 46.5 2326.5 1883.5
RoyaI Dutch SheII . .2223.0 47.0 2336.0 1890.5
SaIamander Energy .204.6 -1.0 317.6 182.3
Soco Internationa . . .333.8 0.3 400.0 279.8
TuIIow OiI . . . . . . . . .1424.0 64.0 1493.0 945.5
Amec . . . . . . . . . . . . .861.0 12.0 1251.0 740.5
Hunting . . . . . . . . . . .643.0 33.0 817.0 530.0
Kentz Corporation . .455.9 13.3 494.5 275.5
LampreII . . . . . . . . . . .225.0 0.8 395.2 224.2
Petrofac Ltd. . . . . . .1359.0 47.0 1685.0 1108.0
Wood Group (John) .582.5 17.5 715.8 432.5
Burberry Group . . . .1294.0 25.0 1600.0 959.5
PZ Cussons . . . . . . . .348.0 1.3 409.0 320.5
Supergroup . . . . . . . .665.0 -14.5 1820.0 657.5
AstraZeneca . . . . . .3002.5 20.5 3359.0 2543.5
BTG . . . . . . . . . . . . . .280.0 0.6 309.7 210.1
Genus . . . . . . . . . . . .1023.0 -27.0 1111.0 800.0
GIaxoSmithKIine . . .1378.0 0.0 1390.0 1127.5
Hikma Pharmaceuti .636.5 8.0 900.0 555.5
Shire PIc . . . . . . . . . .2062.0 41.0 2136.0 1454.0
CapitaI & Countie . . .175.3 -0.5 203.7 141.6
Daejan HoIdings . . .2656.0 56.0 2954.0 2282.0
F&C CommerciaI Pr . .97.4 -0.1 108.0 88.0
Grainger . . . . . . . . . . . .88.3 0.6 133.2 77.3
London & Stamford .119.3 0.5 140.0 112.9
SaviIIs . . . . . . . . . . . . .287.8 4.7 427.1 256.2
UK CommerciaI Pro . .77.8 0.0 85.5 70.4
Unite Group . . . . . . . .176.0 6.7 224.1 152.9
Big YeIIow Group . . .268.3 4.5 352.2 234.2
British Land Co . . . . .525.0 10.5 629.5 452.0
CapitaI Shopping . . .342.2 6.0 424.8 296.4
Derwent London . . .1650.0 41.0 1880.0 1400.0
Great PortIand Es . . .364.0 9.1 445.0 317.4
Hammerson . . . . . . . .414.8 7.8 490.9 353.0
Hansteen HoIdings . . .78.5 1.2 89.5 70.0
Land Securities G . . .713.5 19.5 885.0 616.0
SEGRO . . . . . . . . . . . .236.8 -0.3 331.3 210.1
Shaftesbury . . . . . . . .508.0 7.5 539.0 431.7
Aveva Group . . . . . .1426.0 33.0 1799.0 1298.0
Computacenter . . . . .365.4 -16.8 490.0 337.6
Fidessa Group . . . . .1630.0 30.0 2109.0 1409.0
Invensys . . . . . . . . . . .216.6 2.1 364.3 199.6
Logica . . . . . . . . . . . . .89.6 4.5 147.2 73.9
Micro Focus Inter . . .344.9 8.8 426.2 239.4
Misys . . . . . . . . . . . . .253.5 5.9 420.2 214.9
Sage Group . . . . . . . .278.8 4.1 302.0 231.7
SDL . . . . . . . . . . . . . . .675.0 15.0 711.5 555.0
TeIecity Group . . . . . .579.5 -1.0 590.0 430.0
Aggreko . . . . . . . . . .1728.0 41.0 2034.0 1394.5
Ashtead Group . . . . .152.3 -2.0 207.9 99.4
Atkins (WS) . . . . . . . .537.5 -0.5 820.0 490.2
Babcock Internati . . .677.5 14.0 733.0 513.5
Berendsen . . . . . . . . .442.0 12.2 568.0 391.3
BunzI . . . . . . . . . . . . .792.5 2.5 812.5 676.5
Cape . . . . . . . . . . . . . .471.6 4.7 591.5 348.8
Capita Group . . . . . . .713.0 -0.5 794.5 635.5
CariIIion . . . . . . . . . . .361.9 1.9 403.2 298.8
De La Rue . . . . . . . . .846.5 0.5 854.5 549.5
DipIoma . . . . . . . . . . .318.4 4.9 414.3 258.0
EIectrocomponents .212.1 1.1 294.9 182.2
Experian . . . . . . . . . . .756.0 12.0 833.5 665.0
FiItrona PLC . . . . . . . .350.0 11.6 385.5 227.5
G4S . . . . . . . . . . . . . . .282.3 6.1 291.0 237.7
Hays . . . . . . . . . . . . . . .74.4 1.3 133.6 66.6
Homeserve . . . . . . . .460.9 7.1 532.0 408.0
Howden Joinery Gr . .117.8 0.3 127.5 75.4
Interserve . . . . . . . . . .316.0 5.0 341.3 183.5
Intertek Group . . . . .1958.0 25.0 2148.0 1715.0
MichaeI Page Inte . . .363.0 4.5 567.0 338.7
Mitie Group . . . . . . . .240.8 1.9 244.0 194.1
Premier FarneII . . . . .171.2 1.2 308.8 144.5
Regus . . . . . . . . . . . . . .70.4 -0.6 119.0 64.0
RentokiI InitiaI . . . . . . .69.9 1.9 104.9 64.8
RPS Group . . . . . . . . .174.8 4.3 253.0 156.6
Serco Group . . . . . . .516.0 8.0 633.0 490.9
Shanks Group . . . . . .108.7 -0.8 130.9 103.0
SIG . . . . . . . . . . . . . . . .96.1 -0.3 153.5 83.8
SThree . . . . . . . . . . . .266.4 1.1 447.6 213.2
Travis Perkins . . . . . .857.5 6.0 1127.0 715.0
WoIseIey . . . . . . . . .1696.0 15.0 2261.0 1404.0
ARM HoIdings . . . . . .594.0 0.0 651.0 338.9
CSR . . . . . . . . . . . . . .190.1 5.5 447.0 183.0
Imagination Techn . .465.0 6.3 502.0 296.9
Pace . . . . . . . . . . . . . . .93.5 1.6 231.8 88.1
Spirent Communica .126.5 1.0 160.3 109.5
British American . .2808.5 -5.5 2871.0 2282.5
ImperiaI Tobacco . .2209.0 40.0 2231.0 1784.0
Betfair Group . . . . . . .770.0 5.5 1550.0 567.0
Bwin.party Digita . . .109.5 -2.4 280.9 100.6
CarnivaI . . . . . . . . . .2150.0 1.0 3153.0 1742.0
Compass Group . . . .553.0 9.5 612.0 511.5
Domino's Pizza UK . .465.7 2.4 586.0 377.0
easyJet . . . . . . . . . . . .361.3 1.3 479.0 301.0
FirstGroup . . . . . . . . .327.1 -2.4 412.6 301.8
Go-Ahead Group . . .1460.0 20.0 1598.0 1097.0
Greene King . . . . . . .449.1 6.4 518.0 410.0
InterContinentaI . . .1090.0 4.0 1435.0 955.0
InternationaI Con . . .166.5 -0.2 305.0 141.6
JD Wetherspoon . . . .423.1 5.2 468.3 380.5
Ladbrokes . . . . . . . . .133.8 2.2 155.3 114.0
Marston's . . . . . . . . . . .95.4 0.9 117.1 84.6
MiIIennium& Copt . .409.4 -0.4 600.5 375.6
MitcheIIs & ButIe . . . .240.0 4.9 361.0 216.4
NationaI Express . . .235.8 -2.4 270.2 219.6
Rank Group . . . . . . . .125.7 1.7 153.7 109.5
Restaurant Group . . .287.5 2.9 335.0 254.9
Stagecoach Group . .254.3 0.2 272.4 185.7
Thomas Cook Group .49.3 0.3 204.8 33.7
TUI TraveI . . . . . . . . . .165.4 5.5 271.9 137.2
Whitbread . . . . . . . .1615.0 -15.0 1887.0 1409.0
WiIIiamHiII . . . . . . . . .244.1 2.9 245.6 155.5
Abcam . . . . . . . . . . . .348.0 6.0 460.0 307.0
AIbemarIe & Bond . .317.0 -10.0 400.1 272.0
Amerisur Resource . . .11.8 -0.3 29.0 9.5
Andor TechnoIogy . .502.0 2.0 685.0 340.0
ArchipeIago Resou . . .70.0 4.0 79.0 32.3
ASOS . . . . . . . . . . . .1480.0 -26.0 2468.0 1111.0
AureIian OiI & Ga . . . .18.0 0.3 92.0 16.0
Avanti Communicat .316.0 7.0 735.0 248.5
Avocet Mining . . . . . .255.5 8.5 286.8 173.8
BIinkx . . . . . . . . . . . . .151.3 2.8 158.0 70.5
Borders & Souther . . .49.8 0.3 73.0 43.5
BowLeven . . . . . . . . .120.8 45.5 398.0 74.5
Brooks MacdonaId 1235.0 5.0 1372.5 940.0
Cove Energy . . . . . . . .86.8 3.5 112.8 61.0
Daisy Group . . . . . . . .110.5 0.5 127.0 88.0
EMIS Group . . . . . . . .540.0 10.0 580.0 393.0
Encore OiI . . . . . . . . . .78.8 0.8 151.5 40.8
Faroe PetroIeum . . . .143.0 -2.3 218.3 130.0
GuIfsands PetroIe . . .196.8 0.8 401.5 142.5
GWPharmaceuticaI . .96.5 3.0 130.0 83.0
H&T Group . . . . . . . . .335.0 -4.0 395.0 277.0
Hamworthy . . . . . . . .510.0 -21.5 705.0 373.8
Hargreaves Servic .1080.0 0.0 1099.0 676.0
HeaIthcare Locums . . . .4.3 -0.2 4.6 4.3
Immunodiagnostic . .922.0 -66.0 1218.0 768.5
ImpeIIamGroup . . . .330.0 0.0 387.5 145.0
James HaIstead . . . . .465.0 -2.5 495.0 345.5
KaIahari MineraIs . . .248.5 -3.3 301.0 161.3
London Mining . . . . .331.3 11.0 436.5 283.0
Lupus CapitaI . . . . . . .98.0 0.0 150.0 86.0
M. P. Evans Group . .405.0 0.0 500.5 371.0
Majestic Wine . . . . . .425.8 5.8 510.0 336.0
May Gurney Integr . .294.5 5.5 300.0 211.0
Monitise . . . . . . . . . . . .37.5 -0.3 39.0 18.5
MuIberry Group . . . .1400.0 5.0 1920.0 520.0
Nanoco Group . . . . . . .50.5 -0.3 115.8 48.8
NauticaI PetroIeu . . .319.0 -1.5 547.0 223.5
NichoIs . . . . . . . . . . . .556.5 14.0 579.0 410.0
Numis Corporation . . .91.5 -1.0 137.8 89.0
Pan African Resou . . .12.0 0.0 14.5 9.4
Patagonia GoId . . . . . .53.0 -1.0 70.0 20.3
Prezzo . . . . . . . . . . . . .56.3 2.3 71.5 53.3
Pursuit Dynamics . . .199.8 0.8 700.0 160.5
Rockhopper ExpIor .207.8 4.8 386.0 141.0
RWS HoIdings . . . . . .425.0 -7.5 479.8 266.5
Songbird Estates . . .117.0 0.0 160.3 110.3
VaIiant PetroIeum . . .490.0 0.0 750.0 435.0
Young & Co's Brew . .622.5 0.0 712.0 530.0
Jupiter Fund Manag .224.4 9.0
Premier Foods . . . . . . . .4.5 8.2
Ferrexpo . . . . . . . . . .339.0 7.3
Domino Printing Sc .522.0 6.9
Phoenix Group HoId .522.5 5.6
Hunting . . . . . . . . . . .643.0 5.4
Kenmare Resources . .40.6 5.3
Logica . . . . . . . . . . . . .89.6 5.3
Man Group . . . . . . . . .157.6 5.1
TuIIow OiI . . . . . . . . .1424.0 4.7
Home RetaiI Group . .124.6 -5.2
Computacenter . . . . .365.4 -4.4
Devro . . . . . . . . . . . . .255.0 -3.2
GIencore Internati . . .422.5 -3.0
LIoyds Banking Gro . .33.3 -3.0
Ocado Group . . . . . . . .90.0 -2.7
Genus . . . . . . . . . . . .1023.0 -2.6
BerkeIey Group HoI 1192.0 -2.2
Bwin.party DigitaI . . .109.5 -2.1
Supergroup . . . . . . . .665.0 -2.1
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
FINANCIAL SERVICES
FIXED LINE TELECOMS
FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. & EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM 50
NON LIFE INSURANCE
REAL ESTATE INVEST. TRUSTS
http://corporate.webfg.com
mailto:
globaltechsales@webfg.com
AUTOMOBILES & PARTS
BANKS
CHEMICALS
BEVERAGES
GENERAL INDUSTRIALS
MOBILE TELECOMS
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
MINING
NONEQUITY INVESTM. COMM.
Tsy 3.250 11 . . . . .100.25 -0.16 103.1 100.3
Tsy 5.000 12 . . . .101.71 -0.07 106.1 101.6
Tsy 5.250 12 . . . .102.97 -0.05 107.5 103.0
Tsy 9.000 12 . . . .106.60 -0.13 114.7 106.5
Tsy 4.500 13 . . . .105.36 -0.06 108.8 105.4
Tsy 2.500 13 . . . .284.07 -0.05 287.7 277.6
Tsy 8.000 13 . . . . .114.18 -0.08 120.7 114.1
Tsy 5.000 14 . . . . .111.67 -0.11 114.1 109.2
Tsy 7.750 15 . . . .101.50 -0.49 108.8 101.5
Tsy 4.750 15 . . . . .113.75 -0.16 114.8 108.6
Tsy 8.000 15 . . . .127.50 -0.18 131.3 123.7
Tsy 2.500 16 . . . .339.98 -0.26 342.0 310.2
Tsy 4.000 16 . . . . .112.03 -0.32 113.4 104.9
Tsy 12.000 17 . . .124.08 0.00 134.0 122.5
Tsy 1.250 17 . . . . .113.97 -0.42 115.3 106.7
Tsy 8.750 17 . . . .138.57 -0.69 141.9 132.9
Tsy 5.000 18 . . . . .118.89 -0.39 121.0 109.7
Tsy 4.500 19 . . . . .116.09 -0.43 118.8 105.4
Tsy 3.750 19 . . . . .110.56 -0.50 113.5 99.4
Tsy 4.750 20 . . . . .118.04 -0.43 121.4 106.6
Tsy 2.500 20 . . . .348.86 -0.38 355.6 312.4
Tsy 8.000 21 . . . .146.59 -0.72 151.8 133.8
Tsy 4.000 22 . . . . .112.25 -0.47 115.6 99.0
Tsy 1.875 22 . . . .121.63 -0.52 125.4 111.3
Tsy 2.500 24 . . . .310.70 -0.61 340.9 273.5
Tsy 5.000 25 . . . .123.20 -0.61 126.9 107.4
Tsy 1.250 27 . . . . .116.22 -0.96 121.0 104.6
Tsy 4.250 27 . . . . .114.67 -0.75 118.1 97.9
Tsy 6.000 28 . . . .138.71 -0.72 142.9 119.5
Tsy 4.125 30 . . . .294.76 -0.64 305.4 261.2
Tsy 4.750 30 . . . .121.64 -0.67 125.6 103.0
Tsy 4.250 32 . . . . .113.72 -0.71 117.9 96.0
Tsy 4.250 36 . . . . .113.50 -0.74 117.6 95.0
Tsy 4.750 38 . . . .122.44 -0.74 126.9 102.8
Tsy 4.500 42 . . . . .118.75 -0.76 123.0 98.9
% %
ALTERNATIVE ENERGY
Wealth Management
28 CITYA.M. 17 OCTOBER 2011
Business Features | Entrepreneurs
29
Some business partnerships dont work
Steve Jobs (left) teamed up with John Sculley (right) in 1983. Two years later, Sculley fired Jobs.
A
MERICAN oil magnate John D.
Rockefeller said: A friendship
founded on business is better than
a business founded on friendship.
And there are countless stories of business
partnerships going bad. Steve Jobs famous-
ly teamed up with John Sculley only to be
fired by him two years later (pictured
right). Facebook founder Mark
Zuckerbergs falling out with his partners
is so well known they made a film about it.
Some clearly do work out though. We
asked five successful pairings what makes
it work for them.
1.
LAUGH AT THE MISTAKES
Hayley Sudbury, co-founder of The
Tasting Sessions, says her relationship
with Angella Newell is pretty rare: We
are best friends and business partners. I
think the secret to our success is to have a
drink and laugh when things go wrong.
2.
TRUST
Redingtons co-founder Robert
Gardner says that his relationship
with his co-founder is just like marriage:
Its all about trust. If thats broken
between the two of you, then things break
down.
3.
VISION
Eric Partaker, co-founder of the
Mexican chain Chilango, says that suc-
cess is built on alignment of vision. You
are asking for trouble if you need to negoti-
ate your way through every decision, he
warns.
4.
MOTIVATION
Barry Ferdinand and Jason Collins
from the print solutions company
Apogee say that it is motivation that holds
them together. We worked with people in
the past who didnt have the same work
ethic as us. It didnt work out, says
Ferdinand.
5.
DIFFERENCES
Michael Hayman and Nick Giles who
run the PR agency Seven Hills say their
business needs their differences to survive.
It works because we are not the mirror
image of each other. We have different
skills, outlooks and passions and this cre-
ates the dynamic that works, says Giles.
I
WAS studying at London Business
School last year with every inten-
tion of becoming a banker when I
graduated, says Nitzan Yudan.
Then my wife wanted to go on holiday
to Bruges and since I was a student
money was pretty tight, so I was look-
ing for ways to make a bit of extra
money.
He looked at his assets his flat and
social networks and thought, theres
a business idea here: an exclusive com-
munity for short term renting within
social networks, or Flat-Club as it is now
known. Individuals can rent out their
homes and stay in others homes with-
in their work or social network. It
works through restricting the invita-
tions only to those whom you trust. It
allows people who work at Goldman
Sachs to rent to people who work at
Goldman Sachs. Most people are com-
fortable renting to someone who comes
from the same workplace as them.
AIRBNB SCANDAL
He feels vindicated taking this
approach. Airbnb a company doing
something similar, and valued at $1bn
this summer was recently mired in
scandal when a user was burgled after
posting on the site. I felt terrible for
the girl who was burgled but, as an
entrepreneur, it made me sure that my
business idea was right.
He set up the website, posted his and
a few friends flats on it and then sent
it to the London Business Schools inter-
nal network. In just two weeks we had
70 flats advertised all over the world.
People are just so much more com-
fortable renting to their work network
or friends of friends, he explains.
Weve just launched a Facebook app to
make this easier. Renting to your
Facebook friends of friends widens your
pool of contacts.
SCALABLE IDEA
Hes enthusiastic about the future. Its
such a scalable idea. He thinks its a
4bn market and one that will take
off really quickly among international
students. Indeed, hes targeting 20 busi-
ness schools in the US in the next few
months.
At the moment, Flat-Club is housed
in London Business Schools business
incubator. Hes taken on a partner and
a couple of loans. Were looking to
break a profit in 20 months, but as soon
as weve paid that off were going to
look for more funding. I want to take
this across the globe.
Companies really can
be built upon trust
Donata Huggins asks five entrepreneurial
duos why their working relationship has
lasted through the good times and the bad
The founder of a company that provides short term renting through social networks.
Company name: Flat-Club
Company turnover: 1.2m Thats our
first trading year projection according to
actual results and 40 per cent monthly
growth.
Job title: Co-founder and CEO
Age: 33
Born: Israel
Lives: South Hampstead
Background: MBA, London Business
School
Drinking: Johnny Walker
Idols: Robbie Fowler
Talents: Making my baby laugh.
Favourite business book: Outliers by
Malcolm Gladwell
Motto: This is your life, and its ending
one minute at a time. So what do you do
with it?
CV | NITZAN YUDAN
Nitzan Yudan planned to become a banker when he got
back from a holiday in Bruges. He tells Donata Huggins
how the trip gave him the idea for his Flat-Club business
I wouldnt
have done an
MBA if I
thought I was
going to start
a business, but
it was actually
fantastic
preparation.
I
t was a few years ago, on an evening
near Christmas in a neon-lit office
boardroom, that I set my heart on
South African wine. Until that night,
Id floundered when faced with supermar-
ket wine sections and restaurant lists.
Nothing tasted worth the money. And yet
wine played an almost daily role in my life.
But that night, presided over by
Johannesburgs own Neleen Strauss, the co-
owner of lawyers favourite riverside steak
restaurant High Timber, I found what I was
looking for. With their unembarrassed,
clearly structured, earthy bodies wines
that hugged rather than airkissed South
Africas tasty vintages seemed like home to
me. They delivered oak, tobacco, leather,
berries, warmth, popcorn and butter in
ways that I could actually identify, savour
and afford (most of my favourites cost
about 10-20).
So I was happy. I had delicious Jordan
and Ken Forrester Chardonnays in my
fridge afterwards, and soon after tried
Martin Meinert and Ken Forresters famous
in-your-face-and-then-some FMC: a golden
Chenin that you either love or hate. If
youre a connoisseur of subtle Old World
whites you might find this vulgar. I loved it.
But in London, you cant just drink
South African wine all night its not
always stocked where you are and anyway,
there are others to be had Croatian,
Australian, French, Spanish, Lebanese.
And so finally, it became clear: to get to
grips with the full range of South African
wine, I needed to experience the countrys
soil, its winemakers and of course its
food. Im not a wine specialist, so general
loveliness/fun/beauty/engagement in the
place as a non-specialist was important,
too. As the big Cape Wine Guilds annual
auction in Cape Town rolled around on 1
October, I decided to take the plunge.
South Africa as a tourist destination is a
funny one. The countrys history means
that it is impossible to ignore racial ten-
sions even if you miss the insiders stark
reality, you cant help but notice the acres
of iron shacks (lacking sanitation and
sewage, according to recent reports) on the
highway from the shiny Cape Town airport,
or the grumbles about affirmative action
laws in corporate businesses.
Downtown Cape Town is not a comfort-
able place, especially for a woman on her
own. But clamber out of downtown and
you find a beautiful, California-feeling
array of cute homes with stunning views of
Table Mountain and the valleys around
Cape Town.
For example: on the same day I ate
incredible coconut cake with the best flat
white Ive ever had in a chic whitewashed
caf called Manna Epicure on Kloof Street;
descending into town half an hour later I
crossed from a busy market square onto a
parallel, also busy street, and had my neck-
lace torn off my neck. Racing back up the
chi-chi, comparatively safe-feeling Kloof
(where were these taxis the lady in the
hotel had told me about?), I sweatily
changed at my stunning boutique hotel,
Kensington Place, and hopped in a cab to
the dreamy cove of Camps Bay, where all
the rich Brits have houses.
But onto the wine. The next morning, an
Right: Hamilton
Russells idyllic
farmhouse in
Hermanus.
Lifestyle | Travel
30 CITYA.M. 17 OCTOBER 2011
A journey to the promised
land of New World wine
Centuries after it made some of the best wine
in the world, South Africa is back on top.
Zoe Strimpel couldnt resist going for a taste
emissary of one of the countrys best-
known winemakers, co-owners of the
Londons High Timber and my host for part
of the trip, Jordan Vineyard and Winery,
arrived in a pick-up truck. Off we went to
collect the aforementioned Neleen (the
woman who introduced me to Cape wines
and my guide for the trip) from the airport.
The Cape has several wine making areas,
with Stellenbosch, Constantia, Franchoek,
Hemel en Aarde, and Paarl among them. I
mainly stayed in Stellenbosch, as it pro-
duces many of the best SA wines.
My first drive into Stellenbosch was the
route from Cape Town Airport to Jordan
amazingly quickly the city gives way to big
rural spaces and vineyards. Jordan is my
first taste of a successful Cape vineyard and
its lovely: the house frontage is all glass
windows looking over vineyards; every-
where there are interesting plants and the
petals of the bright flowers that grow every-
where here. The private guest cottage is cov-
ered in fuschia flowers; it is, quite frankly,
adorable, and I feel happy sitting at the
white, wrought-iron table outdoors in the
sunshine as the dogs mosey about looking
for fun, vineyards just metres to my left.
We return to Jordan the next day, but
first we jump back in the car and head
towards the sea, to the pre-eminent wine-
maker Hamilton Russells farm for lunch.
There is a sense of manicured perfection in
Stellenbosch but unlike in Argentina or
California, the landscape here bursts its
borders: with 8,000 species of plants, sud-
den changes in weather, insects aplenty,
craggy slopes, forests and shark-filled
WHOS WHO IN CAPE WINEMAKING
ANTHONY RUSSELL
A society legend, Anthony is a sweetheart,
ladies man and a devilishly good winemak-
er. He works just with two grapes: Pinot
Noir and Chardonnay, and produces a very
high-end result.
PETER FINLAYSON
Wine-maker at the prestigious Bouchard
Finlayson. Charming, charismatic and are
you noticing a trend here? good with the
ladies. Last year his Pinot Noir 2007 fetched
the highest price at the Cape Winemakers
Guild auction.
KATHY AND GARY JORDAN
Warm, smart and humble, the Jordans pres-
ent a kind of parental fantasy if youre under
30. Shes beautiful and caring; hes caring
andgreat fun. Their wines are among the
most prestigious in SA Nine Yards,
Cobblers Hill and the top-end Sophia all win
regular awards.
KEN FORRESTER
KFs wine business has the best PR of the
bunch: hes got a big presence in the US, UK
and European markets and the charm to go
with. A big, huggable man (see below) who
knows how to a) impress the ladies (opening
a 1998 bottle of Billecart
Salmon rose with a soft single
stroke of the spoon, for exam-
ple) and b) lunch like a rock-
star, he also makes delightful
wine at a variety of price
points.
His FMC (made with Martin
Meinart), and Gypsy are the
top dogs, from his Icon
range.
DR PAUL CLUVER
Paul Cluver Senior is a wise,
terribly sharp-minded gentle-
man who built the wine busi-
ness, cultivated the farm and was South
Africas top brain surgeon all at once. He
loves and works on the land.
His wines, now headed up by his charming
son (the operation as a whole is a family
affair, with four daughters also involved),
are all delights.
MARTIN MEINERT
Once known as the Michael Douglas of
South African wine, Meinert is a
charmer: certainly his big blue eyes,
floppy hair, big smile and tan skin
work to his advantage where the
ladies are concerned.
But its his wine that matters: wher-
ever you see it listed: buy Synchronicity.
This Cabernet Franc/Merlot/Grenache
blend is gorgeous.
Gary and Kathy Jordan.
Anthony Russell and wife Olive.
ed on a perfect lawn by a luminous stone
green swimming pool. Oh and the pets.
Two enormous Great Danes; a golden
retriever and, wait for it, a (semi-aggressive)
tortoise.
Russells Pinot Noirs are probably too
rich for an Old World type of drinker, but I
like how they span a decade by changing
from dark and menacing and leathery and
rich to lighter, tarter, softer. The
Chardonnay is a delicious, straw-coloured
creature and take it from me: it goes well
with home-made snook-fish soup.
My tour of Stellenbosch wine play-
grounds was rapid after lunch we
GORDON RAMSAYS BREAD
STREET KITCHEN
ONE NEW CHANGES HOTSPOT
REVIEWED TOMORROW
31 CITYA.M. 17 OCTOBER 2011
hen BlackBerry crumbled, nobody
got any emails for three days. This
made people angry; angrier than if
you had approached them on the
street, apropos nothing, and slapped them firm-
ly across the face (I should know, I tried: they
didnt even react. They were too busy staring at
their lifeless phones).
The episode crisis: lets be frank and call it
a crisis developed like the outbreak of a
deadly virus. The first stage was confusion.
There were no emails. No Messenger.
Communication ground to a halt. People
stared dumbly at each other, their mouths
flapping like grounded fish, trying in earnest to
remember the long forgotten art of verbal
interaction.
On day two there was full blown panic;
cities burned, banks were looted, people
adopted a primitive system of bartering and
anything with a mobile signal was worshipped
as a deity.
By the third day the fabric of civilisation
had peeled away entirely. London was a
waste-ground. Survivors rocked
silently back and forth. The more
practical among them tried in
vain to use the useless husks of
their BlackBerry handsets to
smash their way into tins of
food.
Then, after three days of
silence, RIM wheeled out co-
chief executive Mike Lazaridis
(pictured) a real-life giant, 12-
stories high, sculpted by a wizard
from a single block of cheese to
say he was sorry. And the people
World still recovering from BlackBerry blackout
GEEK SPEAK
@steve_dinneen
understood. Nobody has lost more than Mike.
Earlier this year he was ranked by Forbes as
the 17th wealthiest Canadian (a dubious acco-
lade even then). Now hes begging for pennies
somewhere near Alaska. So it goes.
The question now is what can RIM do to
make things better? Here are some sugges-
tions:
1) Sign up to Android or Windows Phone.
RIMs in-house software looks like its being
powered by a ZX Spectrum compared to the
latest version of Android. Its menus are pixely
and unpleasant to traverse its the operat-
ing system equivalent of throwing folders
into a thicket of nettles and expecting you
to scramble around on your hands an
knees to retrieve them. It lacks the intu-
itive feel of iOS or the slick, consumer-
friendly appeal of Windows Phone.
RIM has new software in the
pipeline the snappily titled QNX
OS but its a tweaked version of the
software we have already seen on
the PlayBook: and its no great
shakes. Killing the BlackBerry OS
may seem like a drastic step but
isnt as big a deal as Nokia ditch-
ing its Symbian platform (and the Meego soft-
ware it had spent the last few years working
on).
2) Sort out the board. Why do Lazaridis and
Jim Balsillie need to share the job? Did they
already try paper, scissors stone? Whatever
the reason, as RIM continues its downward
lurch its shares have fallen by two thirds this
year the situation becomes ever more con-
spicuous.
3) Get the phone right before branching out.
The PlayBook tablet has been an unmitigated
disaster. Parallel universe theory says that
every eventuality will be played out in its own
dimension; every minute change spawning a
new version of reality. But not once, in any
dimension, has anyone ever bought a PlayBook
(RIM may well be in danger of collapsing the
entire fabric of space and time). Of their latest
smartphone releases, only the Bold 9900 is
very impressive (the Torch turning out to be
something of a damp squib). More phones, less
tablets.
Of course, Lazaridis will probably never
read this. City A.M. isnt distributed in Canada.
Id say he could check it online, only I hear hes
having a few problems getting connected.
WHITE
l Teddy Hall Wines Hendrik Biebouw
Chenin Blanc 2010: Tastes of honey
(though less sweet): delicious.
l Paul Cluver The Wagon Trial
Chardonnay 2009: Popcorn tones, which I
love, and sure to age well.
l Ataraxia Chardonnay 2010: Well bal-
anced smoky, rich but without sickly
sweetness. A trusty favourite in the mak-
ing.
REDS
l Jordan Sophia 2008: A cabernet, mer-
lot, malbec blend and one of the best wines
of the region. Smells of hay in a good way.
l Neil Ellis Rodanos 2007: Rich chocolate
tones in this syrah blend; elegant, really
lovely.
l Cederberg Teen die Hoog Shiraz 2009:
An all round winner that gained coos from
the whole audience.
ZOES PICK | THE BEST OF THE CAPE
WINEMAKERS GUILD AUCTION
2011
oceans, how can it not?
Hamilton Russell is almost at the sea: a
mountain stands between it and the raging
waters of Hermanus, the famous whale
viewing spot in the Indian Ocean. HR does
only Chardonnay and Pinot Noir but
these are the tip top.
Anyway, I am utterly seduced by the
whole setup. Anthony, inheritor to the HR
throne (Eton and Oxford, charm on legs),
takes me around his cellar, briefly, showing
me the ceramic pots used for some
Chardonnay taking away the oak makes
the wine a subtler beast and apparently
this method is on the rise in the industry.
If the Jordan farm embodies the idyllic,
cottagey dream (see right for a picture of
the Jordan restaurant), Hamilton Russell
encapsulates the sheer seductiveness of
South African wine wealth (other farms
than the ones on my tour, I gather, have
Apartheid-related histories that ruin their
beauty).
Wood-panelled, high-ceilinged rooms
give way to a gracious terrace looking out
on vineyards as far as the eye can see.
Mountains in the distance are fore-ground-
Top: a typical
Stellenbosch vista.
Above: a table at
Jordan Winery and
Vineyard restaurant.
zoomed off again, through woodland hills
to the farm of Paul Cluver, another big
cheese in both wine and apples. The Cluver
family has an elegant home and an assort-
ment of old Dutch guest cottages, built in
the 17th century. Its The Wagon Trail
Chardonnay is one of the best out there
accessible, affordable and damn good if you
like a Chardonnay thats proud of what it
is. We quaffed this, and the strangely bril-
liant medium-dry Cluver Riesling as an
aperitif (I made sure to take some of this
home).
The next day, Dr Paul Cluver Senior, one
of South Africas top brain surgeons, drove
us through his acres of flowers, apple trees
and valleys covered in heather. It was like
Scotland, only sunnier.
Another meal, another wine farm: this
time it was Martin Meinerts hilltop house,
where Namibian oysters and tuna from the
brai (bbq) were served with La Barry
Sauvignon Blanc (a photo of his wifes
decolletage is the label art). But more
importantly, Meinert is the man behind
the ridiculously good Synchronicity, a
Cabernet Sauvignon, Merlot and Pinotage,
and probably my ideal red. That and
Jordans Cobblers Hill.
Ken Forrester came next: we ate at his
restaurant 96 Winery Road. KFs Petit
Chenin is a fab easy drinking sunshine
white; with lunch, we had the big guns:
FMC and a murkily woundrous red, The
Gypsy, a grenache and syrah.
Forrester is a real hit outside of South
Africa and his operation is big and attrac-
tive. Like the Cluvers, the Meinarts, the
Jordans and the Russells, his family is
around and helpful (two daughters and a
glamorous wife, in this case). It lends a
uniquely relaxed and friendly atmosphere
to the vineyards and to the very wine-drink-
ing itself.
Finally, Jordans restaurant is a must if
youre in the area. Intelligent cooking with
really super ingredients and a space that
merges with the beautiful outdoors (dont
forget the wine) makes it an archetype of
the South African wine experience.
For more info on the regions wine and auction,
go to www.capewinemakersguild.com. To try top
South African wines, go to High Timber, EC4V
3PA.
T
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HOME COOKING MADE EASY
BBC2, 8.30PM
Lorraine Pascale demonstrates how to
prepare a selection of stylish dishes,
including two canapes, Rioja-braised
lamb shanks and pain depi.
BRAVE NEWWORLD WITH
STEPHEN HAWKING CHANNEL4, 8PM
New series. The theoretical physicist
presents an exploration of scientific
breakthroughs that are transforming
life in the 21st century.
NEWHOTEL INSPECTOR
CHANNEL5, 9PM
Alex Polizzi visits the Madonna Halley
Hotel in north London, where the
Mediterranean-inspired fixtures have
proven unpopular with guests.
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmLive Irish Football 10pm
Netbusters 10.30pmSPL Round-
Up 11pmPremier League Review
12amSoccer AM: The Best Bits
1amIrish Football 2.30am
Sports Unlimited 3.30am
Watersports World 4.30amMax
Power 5.30am-6amFIFA Futbol
Mundial
SKY SPORTS 2
6.30pmTitans of Cricket 8pm
International One-Day Cricket
10pmTitans of Cricket 11.30pm
International One-Day Cricket
1.30amTitans of Cricket 3am
NASCAR 4am-6am
International One-Day Cricket
SKY SPORTS 3
6pmNFL 8pmGreat Run Series
8.30pmWild Spirits 9pmKings
of the Extreme 9.30pmBoots n
All 10pmPoker 12amWWE:
Late Night Bottom Line 1am
WWE: Late Night Afterburn
2amLive WWE: Late Night
Raw4.15amPremier League
Review5.15am-5.45amGreat
Run Series
BRITISH EUROSPORT
7pmEurogoals 8pmMotoGP
9.30pmWorld Superbikes
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Inside Racing 12am-12.10am
WATTS
ESPN
6.30pmTalk of the Terrace 8pm
Premier League Review9pm
French Top 14 Rugby Union
9.30pmESPN Game of the Week
10pmBetween the Lines
10.45pmPardon the
Interruption 11.15pmESPN
Kicks: Scottish Premier League
11.30pmESPN Press Pass 12am
Live NFL Countdown 1.30am
Live NFL 4.45am-6am
Bundesliga Review Show
SKY LIVING
7pmAmericas Next Top Model
8pmSteps Reunion 9pmSigned
By Katie Price 10pmRinger
11pmBones 12amCriminal
Minds 1.50amCSI: Crime Scene
Investigation 3.30amBones
4.20amNothing to Declare
5.10am-6amJerry Springer
BBC THREE
7pmDont Tell the Bride 9pmUp
for Hire Live 10pmEastEnders
10.30pmTop Gear USA 11.15pm
Family Guy 12amAmerican Dad!
12.45amUp for Hire Live
1.45amDont Tell the Bride
3.45amSnog, Marry, Avoid?
4.10am-5.10amThe Fades
E4
7pmHollyoaks 7.35pmHow I
Met Your Mother 8pmThe Big
Bang Theory 8.30pmMy Name
Is Earl 9pmOne Tree Hill 10pm
Made in Chelsea 11.05pmMisfits
12.10amThe Big Bang Theory
1.05amScrubs 1.55amHow I
Met Your Mother 2.15amMy
Name Is Earl 2.40amMeet the
Parents 3.05amRules of
Engagement 3.30amReaper
4.15amGlee 4.55am-6am
Switched
HISTORY
7pmAmerica: The Story of the
US 8pmStorage Wars 9pm
Pawn Stars 9.30pmAmerican
Restoration 10pmAmerican
Pickers 12amPawn Stars
12.30amAmerican Restoration
1amAmerican Pickers 3am
America: The Story of the US
4amStorage Wars 5am-6am
Ancient Discoveries
DISCOVERY
7pmMythbusters 8pmWeird
or What? 9pmMythbusters
10pmBattle Machine Bros
11pmStan Lees Superhumans
12amBear Grylls: Born Survivor
1amMythbusters 2amGold Rush
3amDeadliest Catch 3.50am
Wildest Africa 4.40amTreasure
Quest 5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmBirth Stories 8pmI Didnt
Know I Was Pregnant 9pm
Supernanny 10pmHospital
Sydney 11pmA&E 12am
Supernanny 1amHospital Sydney
2amA&E 3amI Didnt Know I
Was Pregnant 4amA Baby Story
5am-6amDeliver Me
SKY1
8pmTerra Nova 9pmA League
of Their Own: With Lee Mack,
Frank Lampard and Gabby Logan.
10pmAn Idiot Abroad 2 11pm
Cop Squad 12amFringe 1am
Road Wars 1.50amNight Cops
2.40amLost 4.20amMy Pet
Shame 5.10am-6amTop Design
BBC2 ITV1 CHANNEL4 CHANNEL5
S
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&
C
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmInside Out: BBC News
8pmEastEnders
8.30pmThe Great Fuel
Robbery Panorama
9pmMotorway Cops
10pmBBC News
10.25pmRegional News 10.35pm
A Question of Sport 11.05pm
Spooks 12.05amFILMBigga Than
Ben: A Russians Guide to Ripping
Off London 2008. 1.25am
Weatherview1.30amSign Zone:
The Great British Bake Off 2.30am
Body Farm3.30amReel History of
Britain 4am-6amBBC News
6pmEggheads:
6.30pmStrictly Come Dancing
It Takes Two
7pmA History of Ancient
Britain
8pmUniversity Challenge
8.30pmCHOICE Home
Cooking Made Easy
9pmOrigins of Us
10pmNever Mind the
Buzzcocks
10.30pmNewsnight: Weather
11.20pmDragons Den: How to
Win in the Den
12.20amFrys Planet Word
1.20amBBC News 4am-6amBBC
Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
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8pmLittle England
8.30pmCoronation Street
9pmDoc Martin
10pmITV News at Ten
10.30pmLondon News
10.35pmExposure: The
Worlds Deadliest Arms Race
11.35pmThat Sunday Night Show
12.05amWildlife Patrol 12.35am
The Zone; ITV News Headlines
2.35amChampions League Weekly
3.05amITV Nightscreen
4.30am-5.30amThe Jeremy Kyle
Show
6pmThe Simpsons
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7.55pm4thought.tv
8pmCHOICE Brave New
World with Stephen Hawking
9pmEmbarrassing Bodies:
Back to the Clinic
10pmRude Tube
11.05pmFresh Meat
11.55pmRandom Acts
12amFighting on the Frontline
1amLate Night Poker 1.55am
FILMRocket Singh: Salesman of
the Year 2009. 4.35am
Accidentally on Purpose
5am-5.50amHill Street Blues
6pmHome and Away
6.25pmOK! TV
7pm5 News at 7
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News Update
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News at 9
9pmCHOICE New Hotel
Inspector
10pmBig Brother
11pmBig Brothers Bit on the
Side 12amUltimate Emergency
Bikers 1amSuperCasino: Live
interactive gaming. 3.55amCounty
Secrets 4.10amGreys Anatomy
4.55amAnimal Rescue Squad
5.10amHouseBusters
5.35am-6amHouse Doctor
1 2 3 4 5
6 7 8
9
10 11 12 13
14
15 16 17
18 19
20 21
10 18
30 7
11 29
21 20
28
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22 10
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12 19
18
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35
17
11
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8
19
24
18
15
34
33
18
16
6
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 Freight (5)
3 Skin covering the
top of the head (5)
6 Kind of cheese (4)
8 Furrow (6)
10 Dish on which food
is served (5)
12 French river which
ows into the North
Atlantic (5)
14 Characteristic way of
holding ones body (7)
15 Slanted (5)
16 Metal currency units (5)
18 Assorted (6)
19 Ale (4)
20 Lofty proud gait (5)
21 Settle ones debts (3,2)
DOWN
1 Low-priced (5)
2 Precious stone (3)
3 Loose-tting white
ecclesiastical
vestment (8)
4 Native Australian (9)
5 Bit (5)
7 Onyx marble (9)
9 Protective strap
in a car (4,4)
11 Cardinal number (3)
13 Yoko ___, widow of
John Lennon (3)
15 Hobbles (5)
17 Disrobe (5)
19 Womans
garment (3)
P
U
N
O
P R
I
C
E

4


4
4



S H R E D A B E T
H O O P T S I
O U S S P A T
D R E S S A G E L
O O S S I R E
S M A K E S U
C A G E E O T
O R E D C R O S S
A L P S O U P
S E D E N Z O
T A C T S N O R T
2 1 3 1 6 8 9
6 3 9 8 5 7 9 7
2 6 1 9 8 6
3 4 1 9 7 3
7 6 8 9 2 3 4 1
2 1 4 5
9 5 7 8 1 2 5 3
5 2 4 6 7 2
1 5 4 6 4 8
9 4 7 3 2 1 6 4
8 3 9 2 7 9 8
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
TRAMPLING
Lifestyle | TV&Games
CITYA.M. 17 OCTOBER 2011 32
Sport
33 CITYA.M. 17 OCTOBER 2011
NEW ZEALAND coach Graham Henry
insists his side are ready to finally ban-
ish their World Cup chokers tag after
securing a place in Sundays final
after yesterdays momentous victory
over arch rivals Australia.
The Wallabies were never allowed
within striking distance as New
Zealands relentless defence, led by an
inspired Richie McCaw playing
through the pain barrier, conceded
just six points to the respective boots
of Quade Cooper and James OConnor.
Maa Nonu had, however, already
crashed over for the only try of the
contest to put the hosts in command,
while Piri Weepu kicked four penal-
ties and Aaron Cruden chipped in
with a drop goal to ensure a healthy
gap was constantly maintained.
New Zealand will start their first
final in 16 years in Auckland as over-
whelming favourites against a France
side who they beat 37-17 in the group
stages.
The Kiwis only other World Cup vic-
tory came in the inaugural tourna-
ment back in 1987, also on home
soil against Les Bleus, but in
between France have held the
upper-hand having won the
1999 semi-final and 2007 quar-
ter-final but Henry is sure this
All Blacks side are ready to
clinch a long overdue
second World Cup
crown.
The guys
character
w a s
s upe r b
tonight.
Y o u
can t
a s k
f o r
more than that. The
defence was outstanding,
Henry said. It is a good
feeling but the job is
not done.
It is important we
understand that and
we get our feet back on
the ground over the
next two days and
build for this Test.
We have got to come down from
this game and it will take a couple of
days. It is a huge game of rugby next
week. We have lot of history with
France at World Cups. We respect
them and it will be a big game.
Skipper McCaw (left), meanwhile,
who has battled with a foot injury
throughout the tournament, added:
It was awesome, we realised we had
to front up and be on the job for 80
minutes. Every single man did their
bit, and thats what youve got to do in
knockout rugby.
Weve got the job to do next week
against France, but Im pleased with
how the guys fronted up. The intensi-
ty of the ball-carriers and at the break-
down was the key.
Final destination: Awesome
All Blacks set up France clash
WORLD champion Sebastian Vettel
insists he will not ease off for the
remaining three races despite adding
the constructors championship to
his drivers title with vic-
tory at yesterdays
Korean Grand Prix.
The German
pipped Britains
Lewis Hamilton in
Yeongam to win
his 10th race of an
utterly dominant
season and could
yet equal Michael
S c h u ma c h e r s
record of 13 tri-
umphs in one campaign.
People now expect us to take it
easy, but we are here to win and do
our best, said Vettel. We had a
chance to win today and we took it.
Vettel, who clinched his second
successive drivers championship in
Japan last week, admitted his relief at
confirming Red Bulls
place at the top of the
constructors stand-
ings.
It was a lot of
pressure off the
shoulders today
when I crossed the
line, he added.
Hamilton
started on
pole, hav-
i n g
knocked
Red Bull
off first
place on the grid for the first time
this season, but was passed by Vettel
on the first lap and had to fight off
his rivals team-mate Mark Webber
for second.
This was a good, strong result for
the team, he said. The guys didnt
put a foot wrong all weekend, so we
should be proud of todays result
but man, it was hard.
Hamiltons McLaren colleague
Jenson Button kept Fernando Alonso
at bay to claim fourth place, with the
other Ferrari of Felipe Massa fifth
and Scotlands Paul di Resta 10th for
Force India.
Veteran Schumacher retired on
lap 17 after being hit by Renaults
Vitaly Petrov, a transgression that
earned the Russian a five-place grid
penalty for the Indian Grand Prix
later this month.
BY FRANK DALLERES
FORMULA ONE

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email sport@cityam.com
TIP OF THE ICEBERG | Warburton banned for three weeks
CRESTFALLEN Wales captain Sam Warburton will serve a three-week ban for the tip tackle that saw him red carded in
Saturdays controversial World Cup semi-final defeat against France. Warburton, the favourite to lead the Great Britain
and Irish Lions on their 2013 tour to Australia, will miss Saturdays third place play-off game against the Wallabies
after yesterdays disciplinary hearing in Auckland deemed his challenge on wing Vincent Clerc to be worthy of a suspen-
sion. He has to bounce back from it now, said former Wales captain and World Cup colleague Ryan Jones. It is a diffi-
cult position to be in and he is going to go through it, but hes a big enough character to get over it. Picture GETTY:
BY JAMES GOLDMAN
RUGBY UNION

20
6
NEW ZEALAND
AUSTRALIA
RACE RESULT: TOP SIX
1. Sebastian Vettel 1hr 38mins 01.994secs
2. Lewis Hamilton 1:38:14.013
3. Mark Webber 1:38:14.471
4. Jenson Button 1:38:16.688
5. Fernando Alonso 1:38:17.683
6. Feilpe Massa 1:38:27.127
DRIVERS CHAMPIONSHIP
1. Sebastian Vettel (C) 349 points
2. Jenson Button 222
3. Fernando Alonso 212
4. Mark Webber 209
5. Lewis Hamilton 196
6. Felipe Massa 98
CONSTRUCTORS CHAMPIONSHIP
1. Red Bull 558 points
2. McLaren 418
3. Ferrari 310
4. Mercedes GP 127
5. Renault 72
6. Force India 49
RESULTS | KOREAN GRAND PRIX
Vettel targets Schumacher record as
Red Bull celebrate double coronation
LIVERPOOL forward Luis Suarez last
night hit back at Patrice Evras
claims that he racially abused the
Manchester United defender during
Saturdays 1-1 draw.
The Football Association is investi-
gating Evras allegation that the
Uruguayan said a certain word to
me at least 10 times.
Suarez said: Im upset by the
accusations of racism. I can only say
that I have always respected and
respect everybody. We are all the
same.
A Liverpool spokesman said on
Saturday that the 24-year-old cate-
gorically denied Evras version of
events.
Referee Andre Marriner was
informed of the allegation after the
final whistle at Anfield and passed
on more precise details to the FA,
who confirmed they are looking
into the incident.
Evra, captaining United in the
absence of Nemanja Vidic, raised his
complaint on a post-match interview
with French television station Canal
Plus. He said: There are cameras.
You can see him saying a certain
word to me at least 10 times. There is
no place for that in 2011.
Suarez has enjoyed a fairly trouble-
free first nine months at Liverpool
but has been involved in controversy
in the past.
Early last season he was banned
for seven matches after biting an
opponents shoulder while playing
for Ajax.
At last years World Cup he was
sent off in the quarter-final win over
Ghana for a deliberate handball on
the goal-line that denied the west
Africans an almost certain win.
An FA statement read: Referee
Andre Marriner was made aware of
an allegation at the end of the fix-
ture and subsequently reported this
to the FA. The FA will now begin
making enquiries into the matter.
Suarez upset at Evras
allegation of racist abuse
BY FRANK DALLERES
FOOTBALL

BRITAINS Andy Murray claimed to


have fulfilled one of his seasons goals
after he ensured he would climb to
third in the world rankings having
defended his Shanghai Masters title
with a win over David Ferrer.
It was the Scots third tournament
victory on the bounce following his
successes in Bangkok and Tokyo and
he never looked in danger against
Spaniard Ferrer, who was comprehen-
sively beaten 7-5, 6-4 inside two hours.
Victory saw the 24-year-old improve
his recent record to 25 wins from 26
matches since mid-August his only
defeat in that run coming against
Rafael Nadal in the US Open semi-
final and is set to move him above
Roger Federer in the standings.
It will be the first time Federer has
fallen out of the
top three since
June 2003, just
before he won
his first
Wimbledon title
and Murray was
delighted to
achieve a tar-
get he has set
himself after
his Flushing
Meadows cam-
paign came a
grinding halt.
Its not
something I
aimed for at the
start of the year.
You want to try to
finish at number one if
you can, said Scotsman
Murray (right).
After the US Open that was-
nt possible. I needed to
reassess my goals. I wanted to
finish the year at three if possi-
ble. I havent done that before.
That still isnt complete. Im
still going to have to win
some more matches
to do that.
But the last three
weeks have been
very good. Ive had
a good mindset
and fought really
hard in all the
matches. Here I got
a bit tired but I
wanted to keep the
run going.
Im really happy
with the way Im playing
and hope I can keep it up
for the rest of the year.
Shanghai and mighty: Murray
moves up to third in the world
BY JAMES GOLDMAN
TENNIS

Sport
34
WENGERS VAN PERSIE FEAR
ARSENAL manager Arsene Wenger admits
he doesnt know whether Robin van Persie
will sign a new contract after the captain
underlined his importance to the Gunners
with a match-winning brace against
Sunderland.
Van Persie scored the fastest Premier
League goal this season after 29 seconds
and, following former Arsenal midfielder
Sebastian Larssons superb equaliser,
clinched three points with a late curling
free-kick.
The Dutchman, whose current contract
expires at the end of next season, attempt-
ed to allay fears he could reject a new con-
tract offer and become the latest big name
to desert the Emirates Stadium.
However he stopped short of pledging his
future to the north London club and
Wenger admitted that, despite being keen
to tie down Van Persie, the in-form striker
could refuse to extend his stay.
Unfortunately the ideal situation in
football does not exist often. The ideal situ-
ation is that he extends his contract but if
he doesnt you have to respect that, said
Wenger.
He knows that we are ready to talk
about it but the most important thing is
today and how much you are committed to
the cause as long as you are at the club.
Van Persie, who has scored seven goals in
11 games for Arsenal this season, when
asked whether he saw his future at the club
he joined in 2004 said: Im committed.
This is my eighth year. If you can say of one
player that hes committed, its me.
A fifth successive home win lifted the
fragile Gunners up to 10th in the table and
Wenger also had goalkeeper Wojciech
Szczesny to thank for an outstanding point-
blank save from Lee Cattermole that kept
the score at 1-1.
Van Persie again stole the show, however,
and terrorised the visitors defence from
the first minute, when he latched onto
Gervinhos pass and drilled a low finish
under Black Cats goalkeeper Simon
Mignolet.
The Holland star lashed another shot just
past the post as the home side chased a sec-
ond goal, but it was Sunderland who scored
next, Larsson whipping a brilliant free-kick
into the top-left corner on 31 minutes.
Szczesny spread himself to deny
Cattermole when the midfielder looked cer-
tain to score but Arsenal seemed to be head-
ing for a disappointing draw until Van
Persie swept a set-piece of his own over the
wall and into the top corner of Mignolets
net.
We have now won five home games on
the trot. If we can put another two or three
results together it will help confidence
because you can feel that the attitude and
spirit of the team is great, Wenger added.
BY FRANK DALLERES
FOOTBALL

2
1
ARSENAL
SUNDERLAND
Dutch strikers brace ensures a much
needed victory but Arsenal manager
can offer no guarantees that his star
man will stay beyond current season
ENGLAND seamer Jade Dernbach
insists he and his fellow bowlers
must find a way of subduing India
captain Mahendra Singh Dhoni if
his side are to claw their way back
into the one-day series.
The hosts took a 1-0 lead in the
five-match series with a compre-
hensive 126-run win on Friday in
which Dhoni bludgeoned 87 runs
from just 70 balls in a total of 300-7.
Of Englands attack, South
African-born Dernbach coped bet-
ter than most in the face of Dhonis
barrage he was the only one of
Alastair Cooks pacemen to go for
less than six an over and he con-
cedes England must work out a
way of stemming the flow of runs
from the World Cup winning skip-
pers bat in Delhi today.
Obviously, hes a fantastic play-
er, said Dernbach. As a bowling
unit, we just need to find a way of
getting him out, and restricting
him as is the case in any game, in
any powerplay.
Hes a great player, as is the
Indian side in general. We just
need to find a way of being better
than him on the day, find a way of
restricting him and getting him
out.
In the games where India have
done well, he seems to have been
the man who has been there to
be quite destructive so we have to
find a way of getting him out.
Much attention has focussed on
Englands collapse at the hands
of the Indian spinners in the open-
er.
And India batsman Virat Kholi
told England that with conditions
on the sub-continent favouring
slow bowlers, and given Englands
problems facing spin on those sur-
faces, it was a tactic that his side
will aim to employ extensively
throughout the series.
Were going to look to use spin
as our strength, said Kholi.
England obviously did struggle in
the first match against spin, so
well probably try to capitalise on
those middle overs where they
were not that sure.
That will be our strength, espe-
cially playing on these kind of
wickets in India.
Dernbach identifies Dhoni as the
man England must look to target
BY JAMES GOLDMAN
CRICKET

35
SPORT | IN BRIEF
Maiden victory for Lewis
GOLF: Englishman Tom Lewis birdied
five of the last seven holes to win his
maiden title at the Portugal Masters, in
only his third professional start. The 20-
year-old, who shot to fame by leading
The Open as an amateur in July, beat a
field that included Padraig Harrington
and Martin Kaymer.
West Brom win bragging rights
FOOTBALL: West Brom sealed a 2-0
victory in the Black Country derby
against Wolves yesterday, with goals in
either half from Chris Brunt and Peter
Odemwingie. Roy Hodgsons side moved
up to 12th in the Premier League after
the win, while Wolves fifth straight
league defeat left them just one point
off the relegation places.
French coach hits out at brats
RUGBY UNION: France rugby coach
Marc Lievremont branded a group of his
players spoilt brats yesterday, after
they defied his orders by going out to
celebrate their semi-final victory over
Wales. Id asked the players not to go
out, and I found out a few of them had
gone out, Lievremont said. Theyre a
bunch of undisciplined spoilt brats.
TOTTENHAM manager Harry Redknapp
admitted he is powerless to prevent Ledley
King from sustaining the type of muscular
injury which saw his skipper fail to com-
plete yesterdays draw at St James Park.
The visitors twice took the lead but ulti-
mately had to settle for a point when substi-
tute Shola Ameobi struck from an
improbable angle four minutes from time
to protect Newcastles unbeaten start to the
Premier League season.
A penalty from Rafael van der Vaart and a
flashing drive from Jermain Defoe sand-
wiched Demba Bas equaliser, but the
goalscoring action followed a first-half groin
injury to King which came as a blow to
Redknapp, who is still without the services
of Michael Dawson and William Gallas.
He plays on Saturday and he comes out
the following Friday and has a little jog
around and then plays on a Saturday, so
really his body is nowhere near fit, said
Redknapp. It cant be, so he is always open
to pulling muscles, getting strains, and
thats what has happened today.
Van der Vaart had stroked Spurs into the
lead when he converted from 12 yards after
Steven Taylors clumsy foul on Adebayor,
only for Ba to equalise shortly after the
break from close range after good approach
play from Jonas Gutierez.
Redknapp reacted by sending on Defoe in
place of the Dutchman and the England
striker needed just four minutes to make an
impact, turning and firing low past Tim
Krul from the edge of the penalty area.
But Newcastle under Alan Pardew are a
tough nut to crack and Ameobi rescued a
deserved point with an equally impressive
King injury adds to Spurs frustration
as Ameobi preserves unbeaten run
BY JAMES GOLDMAN
FOOTBALL

2
2
NEWCASTLE
TOTTENHAM
ED
Ameobis goal
was his first since
May
Picture: PA
DHONIS LAST FIVE V ENGLAND
Southampton, 3 Sep: 6
The Oval, 9 Sep: 69
Lords, 11 Sep: 78 not out
Cardiff, 16 Sep: 50 not out
Hyderabad, 14 Oct: 87 not out
DHONIS OVERALL RECORD V ENGLAND
Matches: 25; Runs 855; Highest Score
96; Average 45.00; Fifties 7; Catches
25; Stumpings 8.
ENGLANDS NEMESIS | MS DHONI
MCCAW FIGHTS THROUGH THE
PAIN TO SET UP FRANCE FINAL
WALLABIES HAVE NO ANSWERS TO
AWESOME ALL BLACKS: PAGE 33
Man City 8 7 1 0 27 6 22
Man Utd 8 6 2 0 25 6 20
Chelsea 8 6 1 1 20 9 19
Newcastle 8 4 4 0 11 6 16
Liverpool 8 4 2 2 11 9 14
Tottenham 7 4 1 2 13 12 13
TOP SIX
TEAM PLD W D L F A PTS
Van Persie has
seven goals in 11
games this season
Picture: GETTY
finish past Brad Friedel to maintain his
sides top four position.
I am hoping the owner is starting to get
a little bit more respect, said Pardew. I
dont think we are ever going to win every-
body over for Mike Ashley and Derek
Llambias and maybe even myself.
But at least you can logically look at it
and say we are in a much better position
than most Premier League clubs in terms of
our financial position.

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