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/ 1.19 unc /$ 1.32 unc

Critics hit
out at new
50bn QE
THE BANK of England will print a fur-
ther 50bn to buy government bonds,
taking the total level of quantitative
easing (QE) to 325bn, the Monetary
Policy Committee (MPC) said yester-
day, in an effort to keep interest rates
low and support growth.
But some economists expressed
doubts over the schemes impact,
arguing variously that the Bank is
underestimating inflation, mis-diag-
nosing the economys problems, and
that monetary policy alone is not
enough.
The Bank surprised markets by
tweaking the maturity of the bonds it
buys downwards a sign it is strug-
gling to buy more 10- to 15-year gilts as
it owns so much of the market.
This should reduce the risk of
undesirable frictions in the gilt mar-
ket arising from the concentration of
the Banks holdings of gilts in certain
maturity sectors, the MPC said.
As a result the yield on five-year
bonds fell slightly and the interest
rate on 30-year gilts rose 11.4 basis
points.
The pound rose around half a US
cent before the announcement,
before easing to end broadly flat.
However, analysts are doubtful this
can help in the longer-term.
RBC Capital Markets Sam Hill said:
This has just transferred pressure to
the three- to seven-year sector, and
there is not much more capacity avail-
able in the short-term end of the mar-
ket than the medium term part.
BY TIM WALLACE
UK ECONOMY

Prime Minister Lucas Papademos must convince Eurozone ministers that Greece is serious about implementing reforms
GREEK party leaders finally struck a
deal yesterday over spending cuts
needed for a new bailout but the
plan still faces opposition in both
Brussels and Athens.
European officials appeared unim-
pressed last night, warning that
Greece must show that it is serious
about cuts and reforms to make its
debts sustainable.
The heat surrounding negotiations
led to Greek finance minister
Evangelos Venizelos warning that a
parliamentary vote on austerity meas-
ures, planned for this weekend, effec-
tively meant a ballot on whether or
not to stay in the euro.
Prior to that vote, Eurozone finance
ministers in Brussels known as the
Eurogroup must judge whether the
deal is acceptable.
As far as I know we still dont have
the conditions that were clearly
required by the council [of EU lead-
ers], said German finance minister
Wolfgang Schaeuble last night.
Greece has to implement what it
has not implemented from the first
programme before we can decide on a
second, Schaeuble added.
Jean-Claude Juncker, who chairs the
Eurogroup, laid down the gauntlet:
No disbursement before implementa-
tion, he warned.
Olli Rehn, European commissioner
for economic affairs, said that it is up
BY JULIAN HARRIS
EUROZONE

www.cityam.com Issue 1,568 Friday 10 February 2012 FREE

HUNT IS ON FOR NEW
ENGLAND MANAGER
FOOTBALL ASSOCIATION HINTS
THAT HARRY REDKNAPP IS FIRST
IN LINE FOR THE JOB P38
THE EXTRAORDINARY
YAYOI KUSAMA
HER TATE MODERN
RETROSPECTIVE REVIEWED P30
BUSINESS WITH PERSONALITY
to the Greek government to convince
its European partners that the second
aid package will put it on a long term
sustainable footing.
Earlier in the evening the Greek gov-
ernment released a statement
announcing a conclusion to drawn-
out talks with the International
Monetary Fund, European Union and
European Central Bank known as
the troika.
Yet the short announcement con-
tained few details of the deal, and
Dutch finance minister Jan Kees de
Jager said it was still not clear that
Greece has agreed to meet the condi-
tions of the next bailout package.
I want to hear from the troika what
has been discussed, he said. From
experience I know you must look very
carefully to see if it all makes sense.
The Greeks still have to do their
homework from the previous package
before we agree on a new package,
added Austrian finance minister
Maria Fekter.
Yet back in Greece, various austerity
measures are vehemently opposed,
with unions calling a two-day strike
starting today and protesters continu-
ing to hit the streets.
Opposition within the government
was also apparent yesterday as minis-
ter Yannis Koutsoukos resigned over
the package, along with conservative
Yiannis Manolis. ALLISTER HEATH: P2
Certified Distribution
28/11/11 till 01/01/12 is 92,879
GREEKS TAKE DEBT
DEAL TO BRUSSELS
News
2 CITYA.M. 10 FEBRUARY 2012
OSBORNE DROPS TARGETS FOR CREDIT
EASING DEAL
George Osborne has decided not to
repeat the fixed lending targets
agreed with five banks a year ago
under the Project Merlin deal.
Treasury officials are seeking to offer
government guarantees on up to
20bn of bank funding, as long as the
cost savings are passed on to small
businesses and hope the median cost
of loans to small companies down
from its current level of about 4.5 per
cent.
IASB PUSHES FOR UNIFORM RULES ON
ACCOUNTING
Accounting inconsistencies are to be
targeted more aggressively by a rule-
making body that helped bring order
to shambolic Greek debt writedowns
last year. A new strategy for the
International Accounting Standards
Board envisages that it will become
more active in trying to ensure that
companies apply its rules in a uni-
form fashion around the world.
LATEST PACT ON INTERNET PIRACY
SET TO BE DERAILED
A controversial international trade
agreement, which campaigners fear
would restrict internet freedom,
looks likely to be delayed or scrapped,
the latest in a string of measures
planned to combat online piracy to
falter in the face of co-ordinated
protests. The Anti-Counterfeiting Trade
Agreement is set to become the latest
anti-piracy agreement to fail.
JUDGE GUILTY OF WIRETAPPING
A Spanish judge famed for his investi-
gations into international human
rights abuses has been found guilty of
ordering illegal wiretaps during a
case involving corruption within the
countrys ruling Popular party.
Baltasar Garzn was unanimously
convicted of overstepping his jurisdic-
tion and barred from the bench.
GOLDMAN BETS ON MONGOLIA
Goldman Sachs has placed a bet on
surging economic growth in
Mongolia, taking a 4.8 per cent stake
in the countrys oldest bank. With
Mongolias economy forecast to
grow by as much as 25 per cent this
year and 30 per cent in 2013,
Goldman has snapped up a stake in
Trade and Development Bank of
Mongolia.
RETIREMENT AGE COULD BE RAISED
TO 73 AS WORKERS LIVE LONGER
David Cameron has raised the
prospect of further increases to the
state pension age for millions of
workers by suggesting that the
retirement age should be automati-
cally adjusted in line with rising life
expectancy. If the change is imple-
mented, children born today are
likely to have to work until they are
73.
CONSTRUCTION FIRMS PAID MORE
QUICKLY
Hundreds of small construction and
engineering firms will be paid more
quickly on public works after the
Highways Agency pledged to pay
them directly on 20 schemes over the
next three years. The Cabinet Office
said it expected the use of these proj-
ect bank accounts to be rolled out
rapidly across public construction
projects so that they are used in
almost 20per cent of cases by 2015.
TAX BREAKS FOR HIRING A CLEANER
COULD SAVE THOUSANDS
Families could be given tax breaks for
hiring cleaners and cooks to help with
household chores, under a scheme to
be considered by ministers. The plan
could save thousands of pounds a year
in fees for domestic help and encour-
age more women to return to work
after having children.
KODAK TO SHUTTER CAMERA
OPERATION
More than a century ago, Eastman
Kodak got into the camera-making
business with the slogan, You press
the button, we do the rest. Yesterday,
Kodak said that it will stop making
digital cameras, pocket video cam-
eras and digital picture frames, a
move that will separate the strug-
gling company from the camera busi-
ness it was founded to pursue.
HASBRO AND ZYNGA ENTER VENTURE
FOR TOYS AND BOARD GAMES
Rivals in the world of online
videogames, Hasbro and Zynga are
becoming partners in the physical
realm of toys and board games. Under
a pact announced yesterday, Hasbro,
the maker of Scrabble and Monopoly,
will create games and toys from
Zyngas popular online games, which
include FarmVille and Mafia Wars.
WHAT THE OTHER PAPERS SAY THIS MORNING
QE not the answer to UKs problems
IF the Bank of England is to be
believed, more quantitative easing is
necessary to make sure inflation does-
nt fall below its target. Yet the Banks
record is not good enough to allow us
to take it on trust. Simon Ward of
Henderson calculates that the Banks
forecasts for inflation in one years
time have been wrong by a whole per-
centage point on average since 2005.
Astonishingly, one would have been
better off using the simplistic rule that
inflation in 12 months time will be
the same as now this would have
given an error of just 0.4 percentage
points and been far more accurate
than the Banks fancy models.
QE isnt always bad, and the drop in
the money supply at the end of last
year is worrying. But it was probably
caused by a combination of a shrink-
ing economy and the new rules forc-
ing banks to contract their balance
sheets and hold more capital and
reduce non-liquid assets (of which
loans are a key component). Trying to
tackle both these problems via ever
more QE is silly: once again, rather
than addressing the root cause of a
problem, our policy-makers are tack-
ling their consequences, creating addi-
tional problems (the risk of inflation
and bond bubbles) in the process. Why
doesnt anybody ever learn?
THROW GREECE OUT
Its time to end this Greek charade. Yes,
an internal deal has been agreed, and
it may be that the Eurozone signs up
to it, despite sceptical noises last night
but even if it does, Greece will never
actually be able to deliver what it is
pledging, and even if it did it this
wouldnt be enough to save it.
It is time to admit defeat, accept
that the Athens government must
default, allow credit default swaps to
pay out and kick Greece out of the
euro. There will be contagion to
Portugal and other places regardless of
whether Greece stays or leaves. Such a
move would be good, over time, for
Greece, which will never readjust and
boost its competitiveness within the
single currency. Short-term, being
booted out and the ensuing financial
collapse would be extremely painful
for ordinary Greeks, and for anybody
daft enough to retain exposure to that
country, but there is no better solu-
tion. The market needs to be allowed
to work. Lenders must grow up and
take the hit. Yesterdays agreement
may buy the current rotten system a
little more time but economic reality
is like gravity: it cant be defied forever.
GOOD SERVICE PAYS
One positive story in todays paper is
worth highlighting: the strong growth
in profits and assets at Hargreaves
Lansdown, the Bristol retail financial
firm. Customer service in the UK
remains woeful, especially when a tele-
phone call is required: with few excep-
tions, the large retail banks, insurance
companies and energy firms seem
unable to treat their customers proper-
ly. Its a disaster. One ends up spending
hours on hold, speaking to unhelpful,
incompetent or badly trained staff,
chasing paperwork and being passed
from department to department at
some remote location. Poor service is
the single biggest reason so many peo-
ple distrust large companies. One glar-
ing exception is the stellar service
provided by Hargreaves Lansdown:
staff pick up phones immediately, are
polite and articulate, and know what
they are talking about. It is a breath of
fresh air and a model other firms
must urgently follow, for their own
good and that of capitalism.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
NEWS | IN BRIEF
Oil trader Halls fund makes a loss
Andrew Hall, the legendary trader who
rode oil's rise and fall to a super-charged
profit record for more than a decade, is
human after all. Roiled like so many of
his rivals by last year's unprecedented
market volatility and distortions, Hall,
61, suffered a 3.8 per cent loss at his
$5bn Astenbeck hedge fund in 2011,
according to one investor in the fund.
Astenbeck fell by more than 10 per cent
during periods in both May, August and
September, when commodity markets
unexpectedly crashed, investors have
said.
Lehman sues Citi for $2.5bn
Lehman Brothers Holdings has sued
Citigroup to recover $2.5bn transferred
in the months leading up to Lehman's
historic collapse, saying Citigroup is
wrongfully keeping the money at the
expense of other creditors. In a com-
plaint filed in the US courts, Lehman
said Citi demanded the money as eco-
nomic conditions worsened in 2008, to
protect itself in case of problems in
Lehman's trading accounts. Citi then
kept the money when Lehman filed for
bankruptcy, the holding firm claims.
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
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self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editors
Code of Practice, a copy of which can be found at
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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 Gavin Billenness
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
Banks settle
on mortgages
FIVE US banks accused of abusive
mortgage practices have agreed to a
$25bn government settlement that
may help one million borrowers.
The record state-federal settlement
will spread relief in the form of mort-
gage relief and $2,000 payments to
borrowers who lost their homes to
foreclosure.
It will also release the banks Bank
of America, Wells Fargo, JP Morgan
Chase, Citigroup and Ally Financial
from civil government claims over
faulty foreclosures and mishandling
of requests for loan modifications.
But the banks still face a host of
other potential government enforce-
ment actions and investor lawsuits
related to their packaging of home
loans into securities, and other mort-
gage-related activities.
We have reached a landmark settle-
ment with the nations largest banks
that will speed relief to the hardest hit
homeowners in some of the most abu-
sive practices of the mortgage industry
and begin to turn the page on an era
of recklessness that has left so much
damage in its wake, President Barack
Obama said in a press conference.
It follows more than one year of
negotiations after evidence emerged
late in 2010 that banks robo-signed
thousands of foreclosure documents
without properly reviewing them.
BY HARRY BANKS
REGULATION

THE TREASURY last night welcomed

an EU agreement on regulating deriv-
atives markets that ended almost two
years of debate on how to control one
of the most opaque areas of finance.
Under the deal, over-the-counter
trades will be forced through clearing
houses a process that incurs a charge
and is designed to discourage the
more opaque end of the market.
Regulators hope the increased
scrutiny will provide a clearer picture
of counterparty risk across the system,
and protect each party against the
threat of a major default.
The era of opacity and shady deals
is over, said Michel Barnier, the EU
commissioner in charge of the rules.
The UK had voiced concerns over
plans to force clearing houses to be
based in the Eurozone, which would
have meant the City missing out a
share in the $700 trillion market. But
the final draft seems to exclude this.
The Treasury said the deal shows
Britain can secure strong results on
critical financial services issues.
BY ELIZABETH FOURNIER
REGULATION

EU agrees derivatives deal

EU commissioner Michel Barnier said the era of shady deals was over
US President Barack
Obama said the $25bn
mortgage settlement
was a landmark deal
to help millions
NOT ALL European Central Bank
(ECB) governing council members
agreed to fund banks in exchange for
lower quality collateral, Bank boss
Mario Draghi revealed yesterday.
Europes banks flocked to take liq-
uidity from the ECB in December, tak-
ing three-year loans after offering
assets as security.
At its next long-term refinancing
operation (LTRO) at the end of this
month, banks will be allowed to offer
lower-quality securities as well,
although the ECB will take a larger
haircut to account for the greater risk
it is taking on.
It will be left to the national central
banks to decide exactly what will be
accepted as collateral in countries
like Italy, Spain and Portugal,
although the ECB will be able to over-
rule them if too much risk is being
taken.
Draghi yesterday credited
Decembers LTRO, which saw banks
tap the ECB for 489bn (410.7bn),
with lessening the new credit crunch.
Banks invested some of that cash in
Italian and Spanish government
bonds, taking their yields out of the
danger zone and reducing the pres-
sure on those embattled govern-
ments.
However, the ECB boss maintained
that the aim is to boost lending to
companies and households, particu-
larly through local and regional
banks.
Around 230bn in bank bonds will
mature in the coming months, and
Draghi hopes the LTROs have helped
to lessen the funding squeeze this
drain on resources will impose.
Draghi also insisted the ECB will
not take any losses on its holdings of
Greek government bonds, arguing
this would amount to illegal moneti-
sation of debt.
The ECB held interest rates at one
per cent, delaying any further loosen-
ing on the basis that survey data sug-
gests the economy may have
stabilised, albeit at a low level.
ECB is divided
on taking low
quality assets
EUROPEAN banks are relying on rejig-
ging the way they calculate the riski-
ness of their balance sheets to raise
nearly a quarter of the capital demand-
ed of them by the European Banking
Authority (EBA), the regulator revealed
yesterday.
In its preliminary assessment of
lenders capital-raising plans, which
they must execute by June, the EBA
has revealed that 23 per cent of the
capital banks plan to raise will come
from tweaking risk calculations.
Because they are required to meet a
target ratio of nine per cent capital to
risk-weighted assets, lenders can get
some way to the goal by recalculating
the riskiness of their assets rather than
boosting absolute capital levels.
The rest of the 116bn in total capi-
tal they must raise will come from con-
verting bonds into equity, hoarding
earnings and rights issues, the EBA
said.
The regulator also claims that the
programme will not hit growth, calcu-
lating its GDP impact at less than one
per cent. But that is after taking
account of the measures arising from
EU State Aid decisions, meaning that
some deleveraging is being mitigated
by government action.
The EBA said it has yet to assess the
feasibility of the banks plans.
Banks to rejig
risk calculations
to raise capital
BY TIM WALLACE
EUROZONE

BY JULIET SAMUEL
BANKING

News
3 CITYA.M. 10 FEBRUARY 2012
Draghis board was split on what kind of collateral to accept from banks
WHAT IS THE ECB DOING?
Q.
WHAT IS THE LTRO?
A.
The ECB is offering long-term
cash to Eurozone banks, letting
them borrow money at one per cent
for three years a long-term refi-
nancing operation, or LTRO. The idea
is to flood banks with cash so that
they do not have to restrict lending
because of liquidity worries.
Q.
WHAT WILL THAT DO?
A.
The idea is to stop banks worry-
ing about cash flow so that they
can lend instead. That might mean
buying government bonds (lowering
yields) or it could mean lending to
companies or con-
sumers, fuelling
growth. In December, a
huge 489bn was borrowed and the
ECB expects roughly the same
demand at the end of February.
Q.
IS THE ECB NOT TAKING RISKS
BY MAKING THESE LOANS?
A.
There is a chance that not all the
banks will be able to pay back
the money. However, the ECB will
only lend to banks if they offer assets
as collateral, so the ECB has some-
thing it can sell instead. This also
allows banks to park unwanted
assets at the Bank rather than taking
an immediate write-down on them.
Q A
&
Lifestyle| Going Out
30
The Devil and Mister Punch is delightfully
macabre and laugh out loud funny
Extraordinary
work by a truly
unique mind E
ARLY 2012 openings are showing
plenty of promise. Take Galante on
South Kens Sloane Avenue. After
a beefy expansion, Gaucho is open-
ing its first cocktail bar. Inspired by
Argentinas gilded era, staff at the Art
Deco-inspired Galante don traditional
white jackets or chic lam dresses to
serve guests while the drinks are mostly
classic South American cocktails like the
El Pato (gin, dry vermouth, sweet ver-
mouth, Campari, Cointreau and a dash
of Kirsch) or the classic Clarito (gin and
dry vermouth in a sugar-rimmed martini
glass with a twist).
Nearby on Pont Street, Mark Hix has
launched his newest venture within the
new Belgraves Thompson Hotel. The
lounge and open plan Marks Bar above
the restaurant pays homage to its suc-
cessful Soho sister and theres a swanky
cigar garden on the way too. Try the mas-
terful Temperley Tea (cider brandy, chilled
peppermint tea, apple syrup and lime).
Further east, the London Cocktail Club
has opened their newest installation on
New Oxford Street in Bloomsbury. Where
the original gave gin pride of place, the
new LCC will favour rum and features a
Royal Navy theme complete with jolly-
roger print wallpapers and cocktails
inspired by days of sailing the ocean blue,
such as the 18th century Black Strap
(Muscovado, vanilla, lime and liquorice) or
the House Grog (three rums, port, sherry,
gin and arrack).
Nearby in Fitzrovia, Dabbous has just
opened to much acclaim, with former
Cuckoo Clubber Oskar Kinberg manning
the mixology in the basement bar, while
Michelin-starred Ollie Dabbous tends to
the food. The design scheme blends the
industrial with the organic (brick and
copper piping offset by rustic candles and
natural woods) as well as moreish classic
cocktails and signature drinks like Mellow
Yellow (tequila, Cointreau, house-made
cigar syrup and a whisky finish).
Meanwhile, McQueen in Shoreditch has
also relaunched with the expanded space
boasting state of-the-art lighting and
sound. Innerplace will be hosting the bar
at Purple Bar at Sanderson every
Thursday this month. For more info about
this and other advantages to joining
innerplace, go to www.innerplace.co.uk.
GOING
OUT
TIM BADHAM
Art
YAYOI KUSAMA
Tate Modern
hhhhh by Zoe Strimpel
The Tate Moderns new show, a retro-
spective of the work of Yayoi Kusama,
Japans most famous living artist, is an
engorgement of colour, size and intensi-
ty.
Kusamas work is a clear extension of
her brilliantly volatile, unabashedly
unusual mind. After a lengthy experi-
mental period on the New York art scene
(at one point she wrote to Richard Nixon
and offered to have sex with him if hed
help stop the Vietnam War), Kusama
returned to Japan in 1973, electing to
take up residence in a mental hospital
in Tokyo, where she has remained ever
since (her studio is across the road).
The psychedelic, often frenetically
sexual images recurring spermatozoa,
phalluses, spirals and the dots that both
predict and far exceed in exuberance
those of Damien Hirst begin after her
move to the US in the late 1950s. Her
early paintings, done in Japan, are
technically impressive but are
also luscious, fecund images
that anticipate the biological
forms of her later work.
Paintings such as Lingering
Dream (a 1949 beauty in
gleaming turquoise and pur-
ples showing some kind of
vegetative movement) and
Corpses, depicting fat
brown tubes, are mag-
netically dark. These
paintings look
towards the 1960s
accumulation series
of sculptures, objects
from coats to sofas
stuffed and coated
in macaroni and
phalluses. The Infinity Net paintings,
from the beginning of the US period,
represent a drastic change in style for
Kusama and the experience of leaving
her dark, finely painted collage period
(1950s) and entering a room of vast can-
vases covered in pale, obsessively scal-
loped paint, is head-spinning. The
neutrality of the Infinity Net colour
scheme only makes way for the intellec-
tual intensity burning behind the pat-
tern. Strangely, they are also peaceful:
one would want them in ones home.
There is sculpture and film, too the
artists dynamism knows no bounds
but among the show-stealers are the
recent paintings. A cacophony of colour
is belted out from 13 square canvases
that, together, emit a high-octane energy
unlike anything I have seen in a long
while.
Also mesmerising is Infinity Mirrored
Room Kusamas largest mirrored
room to date. To enter this installa-
tion an endless grid of flashing
baubles is to feel as though one is
standing alone in the middle of mid-
town Manhattan, or Tokyo.
Im Here, But Nothing, is a dark room
of househould furniture and objects
covered in ultraviolet flourescent
dots, with a TV set in a corner
depicting Kusama chanting.
One rather fancies moving in.
Or having a drink, at least. The
Clouds (1984) is a jigsaw puz-
zle-esque formation of sewn
and stuffed cushions sitting
in silvery clusters on the floor.
This is an eye-popping paean
to easily the most interesting artist
alive today and should not be
missed.
l The Royal Academys blazing-
ly popular David Hockney
show, The Bigger Picture, will
stay open until midnight on
Friday and Saturdays until 9
April to provide extra access to
the otherwise sold out show.
Theatre
THE DEVIL AND MR PUNCH
The Barbican
hhhhI by Steve Dinneen
T
he Devil and Mister Punch is
the seaside theatre production
from your nightmares, where
human-sized puppets wielding
baseball bats break loose from the
stage and Mister Punch gets chased
through hell by giant penises.
The action takes place in a Punch
and Judy tent that wouldnt look out
of place in a Dali painting, riddled
with hidden trapdoors and secret
openings from which puppets and
actors leap unexpectedly.
There is a central thread involving
the eponymous Mister Punch, in
which he finally gets his comeup-
pance for a life of violence and crime.
Judy lies slain, his baby is dead and
the policeman is very, very angry.
When the crocodile is called as a wit-
ness at his trial, you suspect things
arent going to go Punchs way.
In true vaudeville style, though,
the narrative is broken up by a series
of sketches in which the macabre
characters from Punchs universe go
about their charmless lives; the dog
forced to write the plays script; the
broke butcher saved when he gets an
unexpected visit from a troupe of
dancing pigs. Songs break out, with
live music provided by the pup-
peteers.
The puppets are deliciously sinis-
ter; grotesque, malformed brutes
straight out of a Victorian night-
mare. The puppet masters play just
as big a role, though; sad creatures
unwillingly tied to their papier
mache creations. Nick Haverson is
particularly impressive as the Charlie
Chaplain-style crying clown behind
the Mister Punch. He moves with the
grace of mime and has the comic
timing of a silent movie star.
It isnt all played for laughs
though; at its heart The Devil and
Mister Punch is a lament to a bygone
age of entertainment. Youre given
the impression that everyone who
turned their backs on this noble tra-
dition is in the dock alongside
Punch. If productions like this end
up dying out, we should all be found
guilty.
Infinity Mirrored
Room Filled With
Brilliance is Kusamas
largest mirror room
to date. The effect is
stunning. Cut-out:
Kusama.
The macabre show is
a fitting paean to the
grotesque seaside
puppetry tradition
31
Dangerous Method but a sadly safe film
Film
THE MUPPETS
Cert: U
hhhhh by Stevie Martin
W
hether you loved it first time
around, or never got the whole
fuzzy-animals-singing thing,
nows your chance to catch up
with the Muppets. When the young,
Muppet-obsessed Walter (voiced by Peter
Linz) visits Los Angeles, he not only finds
the Muppet Studios in disrepair but
overhears evil business tycoon Tex
Richman (Chris Cooper) plotting to
tear it down. The only way to stop
him is to convince Kermit to do one
last show and raise 10m in two days.
Jim Henson, Jason Segal and
Nicholas Stoller have scripted a heart-
felt but hilarious comeback for the
much-loved puppets. Miss Piggy is
Michael Fassbender
gets up close and
very personal with
Keira Knightley in A
Dangerous Method
Kermit (below)
and friends return
for this nostalgic
romp
D
aniel Radcliffe returns post-Potter
in this traditional ghostly yarn
based on Susan Hills novel and the
wildly popular West End show.
Director James Watkins gives a master-
class in creaky gothic horror, complete with
rolling mists, strange spectres with a pen-
chant for black (and appearing behind peo-
ple), and plenty of heart-stoppingly tense
scenes involving candlelight.
After the death of his wife, young solici-
tor Arthur Kipps (Radcliffe) travels to a
tiny English village to sort the affairs of a
recently deceased woman. Holed up in an
inn, sleeping in a room where two children
infamously died, and plagued by a cursed
figure known locally as The Woman In
Black (a spectral Liz Smith) it becomes
The Muppets is a nostalgic treat
clear the house holds something more unnat-
ural than spiderwebs. Despite strong per-
formances from innkeepers Ciaran Hinds and
Janet McTeer, this is all riding on Radcliffes
shoulders and he, thankfully, rises to the chal-
lenge. Against elegant grey scenery and
through endless, and expertly judged, sus-
pense sequences, Radcliffe surprisingly con-
vincing. Although all he has to do is react, he
looks neither out of place nor out of his
depth.
Some horror fans will be disappointed by
the lack of gore, but Watkins creates an
atmosphere where the slightest creak of a
floorboard raises the hackles and empty
space becomes horribly sinister. The anticipa-
tion is dragged out to near-painful lengths
before allowing the audience that all impor-
tant final scare, making this adaptation a
credit both to the original novel and the terri-
fying theatre production.
Though weve seen it before, and there
may be one too many moments involving fig-
ures appearing in mirrors, this remains deli-
ciously creepy stuff and a welcome addition
to the traditional English ghost story canon.
Film
A DANGEROUS METHOD
Cert: 15
hhhII by Steve Dinneen
A
Dangerous Method has been large-
ly and willfully overshadowed by
its hype. Most people heard about
that film where Keira Knightley
gets spanked long before they knew it was
about Sigmund Freud and Carl Jung. To be
honest, when I found out, I was a bit wor-
ried they might get in the way of the
spanking.
The scene in question which turns out
to be fleeting has been talked about so
much it colours the rest of the movie, in
the same way that watching Titanic is
coloured by the knowledge that the boat is
going to end up at the bottom of the ocean.
A Dangerous Methods narrative center-
ing on the relationship between Freud and
Jung during the early years of psychoanaly-
sis is like a sexual orchestra building
towards the inevitable filthy crescendo.
Its a shame that the film isnt quite
strong enough to carry the weight of expec-
tation. It has the ingredients of a classic
David Cronenberg film; madness, sex,
revulsion at the self. But its all disappoint-
ingly flat.
Knightley is often unfairly criticised
for pouting her way through roles, an
accusation that certainly cant be levelled
at this performance. From the opening
scene in which, as Jungs disturbed
patient-come-protege Sabina Spielrein,
she is dragged kicking and screaming
into an asylum, Knightley sets out her
stall. She contorts her chisled jaw and
slender limbs in improbable angles,
flinching at the slightest movement. This
is her Whats Eating Gibert Grape
moment. She doesnt quite pull it off.
Despite a valiant effort, she is never quite
convincing as Spielrein the patient,
although she is more comfortable as her
character recovers (a very suspect word
in the eyes of a psychoanalyst).
Viggo Mortensen is impressive as psycho-
analytical patriarch Freud, playing him
with a slightly menacing reserve. Michael
Fassbenders Jung is a refreshing change of
pace for the actor of the moment a lik-
able, earnest chap troubled by his
repressed sexual desires and some pretty
wacky ideas about para-psychology. The
dialogue between the two doesnt exactly
crackle but its a fascinating take on the
decidedly Freudian relationship at the
heart of psychoanalysis.
If you can put the spanking to the back
of your mind, A Dangerous Method is a
passable, slow-paced period drama. But as a
David Cronenberg vision of the nature of
psychology and desire, you cant help but
feel short-changed.
now editing plus-size Vogue; Gonzo owns a
plumbing empire; Fozzie bear sings in
Reno-based tribute act The Moopets and
Animal is, of course, taking anger manage-
ment classes with Jack Black.
Its impossible not to be charmed by the
car journeys from America to Paris, the
OTT explosions and Chris Cooper respond-
ing to a humble plea from Kermit to give
back their studios with a full-on rap. Its
not just the puppets providing the gig-
gles Jason Segal as Walters brother Gary
and Amy Adams as Garys girlfriend turn
the cheese factor up to eleven. It could be
cloying if they werent having such a ball;
be it ineptly fronting a 400-strong profes-
sional dance troupe or going hell for
leather with the vibrato during the
emotional musical numbers. Zach
Galifianakis, Sarah Silverman, Ricky
Gervais, Dave Grohl and Emily Blunt
are just a few of the human-shaped
cameos. It goes to show what an impact
these fuzzy singing animals still have
after all these years.
Film
THE WOMAN IN BLACK
Cert: 12A
hhhhI by Stevie Martin
LON GD ONCE FIX AM...........1733.00 -10.00
SILVER LDN FIX AM ..................33.99 0.04
MAPLE LEAF 1 OZ ....................36.50 0.08
LON PLATINUM AM................1665.00 16.00
LON PALLADIUM AM...............714.00 8.00
ALUMINIUM CASH .................2236.00 64.00
COPPER CASH ......................8585.50 250.50
LEAD CASH...........................2190.00 65.00
NICKEL CASH......................21825.00 530.00
TIN CASH.............................25600.00 1400.00
ZINC CASH ............................2128.00 46.50
BRENT SPOT INDEX................116.67 0.33
SOYA .....................................1231.50 -0.50
COCOA..................................2263.00 -10.00
COFFEE...................................220.05 -0.90
KRUG.....................................1816.70 4.10
WHEAT ....................................166.97 -0.88
AIR LIQUIDE........................................98.61 1.47 100.65 80.90
ALLIANZ..............................................88.32 -0.81 108.85 56.16
ANHEUS-BUSCH INBEV ....................48.76 -0.01 49.10 33.85
ARCELORMITTAL...............................17.52 0.12 28.55 10.47
AXA......................................................12.66 0.01 16.16 7.88
BANCO SANTANDER...........................6.60 0.07 9.00 4.94
BASF SE..............................................61.42 0.86 70.22 42.19
BAYER.................................................55.24 0.80 59.44 35.36
BBVA......................................................7.30 0.07 9.17 4.94
BMW ....................................................71.54 2.54 73.85 43.49
BNP PARIBAS.....................................36.55 0.40 59.93 22.72
CARREFOUR ......................................18.14 -0.18 31.64 14.66
CRH PLC .............................................15.54 0.15 17.40 10.28
DAIMLER.............................................46.68 2.06 57.22 29.02
DANONE..............................................48.80 0.22 53.16 41.92
DEUTSCHE BANK..............................34.87 0.40 48.70 20.79
DEUTSCHE BOERSE .........................48.96 -1.04 62.48 35.65
DEUTSCHE TELEKOM.........................8.92 0.02 11.38 7.88
E.ON.....................................................16.62 -0.38 25.00 12.50
ENEL......................................................3.28 -0.00 4.86 2.78
ENI .......................................................17.23 0.08 18.66 11.83
FRANCE TELECOM............................11.44 -0.15 16.65 11.09
GDF SUEZ ...........................................20.30 -1.03 30.05 17.65
GENERALI ASS...................................12.17 0.05 17.05 10.34
IBERDROLA..........................................4.73 0.03 6.10 4.16
INDITEX ...............................................67.74 0.16 69.40 50.92
ING GROEP CVA...................................6.87 -0.39 9.50 4.21
INTESA SANPAOLO.............................1.58 -0.02 2.47 0.85
KON.PHILIPS ELECTR.......................15.91 0.17 24.12 12.01
L'OREAL..............................................82.22 0.62 91.24 68.83
LVMH..................................................123.85 0.15 132.65 94.16
MUNICH RE.......................................107.80 0.05 126.00 77.80
NOKIA....................................................3.82 -0.07 8.49 3.33
REPSOL YPF.......................................21.13 0.44 24.90 17.31
RWE.....................................................32.10 -0.43 53.52 21.15
SAINT-GOBAIN...................................35.81 0.36 47.64 26.07
SANOFI ................................................56.11 0.54 57.42 42.85
SAP......................................................47.89 0.05 48.43 32.88
SCHNEIDER ELECTRIC.....................48.01 0.11 61.83 35.00
SIEMENS .............................................75.52 -0.48 99.39 62.13
SOCIETE GENERALE.........................25.13 1.29 52.70 14.32
TELECOM ITALIA..................................0.82 -0.01 1.16 0.70
TELEFONICA ......................................13.35 0.03 18.75 12.50
TOTAL..................................................41.15 0.28 44.55 29.40
UNIBAIL-RODAMCO SE...................145.40 0.50 162.95 123.30
UNICREDIT............................................4.43 -0.04 13.34 2.20
UNILEVER CVA...................................25.26 0.20 27.16 20.90
VINCI ....................................................38.41 0.63 45.48 28.46
VIVENDI ...............................................16.34 -0.06 21.37 14.10
VOLKSWAGEN VORZ ......................144.60 3.00 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5895.47 19.54 0.33
FTSE 250 INDEX. . . . . . . . 11234.57 72.69 0.65
FTSE UK ALL SHARE . . . . 3046.11 11.96 0.39
FTSE AIMALL SH . . . . . . . . 788.16 6.56 0.84
DOWJONES INDUS 30 . . 12890.46 6.51 0.05
S&P 500 . . . . . . . . . . . . . . . 1351.95 1.99 0.15
NASDAQ COMPOSITE . . . 2927.23 11.37 0.39
FTSEUROFIRST 300 . . . . . 1073.53 2.69 0.25
NIKKEI 225 . . . . . . . . . . . . . 9002.24 -13.35 -0.15
DAX 30 PERFORMANCE. . 6788.80 40.04 0.59
CAC 40 . . . . . . . . . . . . . . . . 3424.71 14.71 0.43
SHANGHAI SE INDEX . . . . 2349.59 2.06 0.09
HANG SENG. . . . . . . . . . . 21010.01 -8.45 -0.04
S&P/ASX 20 INDEX . . . . . . 2568.10 0.00 0.00
ASX ALL ORDINARIES . . . 4357.10 0.00 0.00
BOVESPA SAO PAOLO. . 65530.49 -300.67 -0.46
ISEQ OVERALL INDEX . . . 3118.62 11.77 0.38
STRAITS TIMES . . . . . . . . . 2904.76 -1.93 -0.07
IGBM. . . . . . . . . . . . . . . . . . . 896.33 5.48 0.62
SWISS MARKET INDEX. . . 6169.63 13.77 0.22
Price Chg %chg
3M........................................................88.02 0.05 98.19 68.63
ABBOTT LABS ...................................55.26 -0.31 56.84 45.28
ALCOA ................................................10.64 -0.03 18.47 8.45
ALTRIA GROUP..................................29.30 0.46 30.40 23.20
AMAZON.COM..................................184.98 -0.50 246.71 160.59
AMERICAN EXPRESS........................52.31 0.67 53.80 41.30
AMGEN INC.........................................66.84 -1.22 70.00 47.66
APPLE...............................................493.17 16.49 496.75 310.50
AT&T....................................................29.99 -0.03 31.94 27.27
BANK OF AMERICA.............................8.18 0.05 14.95 4.92
BERKSHIRE HATAW B.......................79.20 -0.46 87.65 65.35
BOEING CO.........................................75.90 0.44 80.65 56.01
CATERPILLAR..................................112.83 -1.21 116.55 67.54
CHEVRON.........................................106.37 -0.39 110.99 86.68
CISCO SYSTEMS................................20.00 -0.43 22.15 13.30
CITIGROUP.........................................33.66 -0.57 49.60 21.40
COCA-COLA.......................................67.97 -0.36 71.77 61.29
COMCAST CLASS A..........................27.46 0.21 27.50 19.19
CONOCOPHILLIPS.............................71.55 -0.70 81.80 58.65
DU PONT(EI) DE NMR........................52.06 0.41 57.00 37.10
EXXON MOBIL....................................84.88 -0.44 88.23 63.47
GENERAL ELECTRIC.........................19.13 -0.11 21.65 14.02
GOLDMAN SACHS GRP ..................115.88 -0.27 169.90 84.27
GOOGLE A........................................611.46 1.61 670.25 473.02
HEWLETT PACKARD.........................29.11 -0.35 49.39 19.92
HOME DEPOT.....................................45.27 0.10 45.58 28.13
IBM.....................................................193.13 0.18 194.90 151.71
INTEL CORP .......................................26.86 0.01 27.00 19.16
J.P.MORGAN CHASE.........................37.86 -0.44 48.36 27.85
JOHNSON & JOHNSON.....................64.89 -0.35 68.05 55.76
KRAFT FOODS A................................38.64 0.10 39.06 24.30
MC DONALD'S CORP ........................99.99 -0.06 102.22 72.89
MERCK AND CO. NEW......................38.15 -0.27 39.43 29.47
MICROSOFT........................................30.77 0.11 30.80 23.65
OCCID. PETROLEUM.......................104.23 0.43 117.89 66.36
ORACLE CORP...................................28.89 0.16 36.50 24.72
PEPSICO.............................................64.27 -2.47 71.89 58.50
PFIZER ................................................21.14 0.13 22.17 16.63
PHILIP MORRIS INTL .........................80.06 2.18 80.99 58.50
PROCTER AND GAMBLE ..................64.04 0.40 67.72 56.57
QUALCOMM INC ................................61.94 0.47 61.99 45.98
SCHLUMBERGER ..............................78.64 0.23 95.64 54.79
TRAVELERS CIES..............................59.89 0.04 64.17 45.97
UNITED TECHNOLOGIE ....................83.78 2.04 91.83 66.87
UNITEDHEALTH GROUP...................53.06 0.92 54.18 41.27
VERIZON COMMS ..............................37.92 0.00 40.48 32.28
VISA CL A..........................................112.42 4.07 114.90 70.45
WAL-MART STORES..........................61.96 0.34 62.63 48.31
WALT DISNEY CO ..............................41.53 0.26 44.34 28.19
WELLS FARGO & CO.........................30.58 -0.05 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 ..................0.281 0.00
LIBOR Euro - 12 months ................1.677 0.00
LIBOR USD - overnight...................0.142 0.00
LIBOR USD - 12 months.................1.072 0.00
HaIifax mortgage rate .....................3.990 -0.02
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.500 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................3.200 0.06
European repo rate.........................0.229 0.00
Euro Euribor ....................................0.375 0.00
The vix index ...................................18.39 0.23
The baItic dry index ........................676.0 16.0
Markit iBoxx...................................241.42 1.26
Markit iTraxx..................................131.05 3.09
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
BAE Systems . . . . . .318.9 4.8 356.5 248.1
Chemring Group . . . .424.7 6.0 736.5 368.8
Cobham . . . . . . . . . . .189.7 0.2 236.5 165.9
Meggitt . . . . . . . . . . . .365.5 0.7 397.6 304.9
QinetiQ Group . . . . . .140.7 1.5 143.0 101.5
RoIIs-Royce HoIdi . . .770.0 -15.0 786.5 557.5
Senior . . . . . . . . . . . . .183.2 -1.3 190.6 132.6
UItra EIectronics . . .1603.0 12.0 1830.0 1305.0
GKN . . . . . . . . . . . . . .220.0 0.9 245.0 157.0
BarcIays . . . . . . . . . . .233.1 -0.5 333.6 138.9
HSBC HoIdings . . . . .568.0 2.5 730.9 463.5
LIoyds Banking Gr . . .35.6 -0.2 69.3 21.8
RoyaI Bank of Sco . . .28.8 -0.0 49.0 17.3
Standard Chartere .1609.0 12.0 1712.5 1169.5
AG Barr . . . . . . . . . .1255.0 10.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .372.7 2.5 449.2 289.9
Diageo . . . . . . . . . . .1468.0 6.5 1474.0 1112.0
SABMiIIer . . . . . . . . .2529.0 22.0 2547.5 1979.0
AZ EIectronic Mat . . .314.0 4.6 338.1 206.1
Croda Internation . .2044.0 1.0 2081.0 1456.0
EIementis . . . . . . . . . .161.2 -1.1 187.4 107.5
Johnson Matthey . .2254.0 -3.0 2272.0 1523.0
Victrex . . . . . . . . . . .1313.0 -1.0 1590.0 1025.0
YuIe Catto & Co . . . . .207.2 2.1 253.0 148.0
C/$ 1.3284 0.0003
C/ 0.8398 0.0018
C/ 103.18 1.0286
/C 1.1906 0.0026
/$ 1.5820 0.0005
/ 122.55 0.9614
FTSE 100
5895.47
19.54
FTSE 250
11234.57
72.69
FTSE ALLSHARE
3046.11
11.96
DOW
12890.46
6.51
NASDAQ
2927.23
11.37
S&P 500
1351.95
1.99
Smith (DS) . . . . . . . . .174.5 8.7 183.4 113.3
Smiths Group . . . . .1032.0 17.0 1429.0 869.5
Brown (N.) Group . . .252.7 4.7 304.5 227.0
Carpetright . . . . . . . . .567.0 -10.5 770.5 375.0
Debenhams . . . . . . . . .70.0 1.4 74.8 51.2
Dignity . . . . . . . . . . . .779.0 1.0 854.5 648.5
Dixons RetaiI . . . . . . .14.8 -0.0 22.3 9.4
DuneImGroup . . . . . .489.0 1.0 524.5 383.9
HaIfords Group . . . . .325.0 0.0 409.7 268.6
Home RetaiI Group . .110.4 0.3 235.0 72.5
Inchcape . . . . . . . . . .364.0 3.9 425.4 268.1
JD Sports Fashion . .813.0 -6.0 1030.0 570.0
Kesa EIectricaIs . . . . .85.1 4.7 151.4 60.2
Kingfisher . . . . . . . . .270.4 1.7 287.1 217.0
Marks & Spencer G . .350.4 4.8 402.2 301.8
Next . . . . . . . . . . . . .2719.0 -3.0 2810.0 1868.0
Sports Direct Int . . . .256.7 0.3 266.2 159.0
WH Smith . . . . . . . . . .520.0 5.0 559.0 433.8
Smith & Nephew . . . .632.5 -5.5 742.0 521.0
Synergy HeaIth . . . . .853.0 6.5 981.0 808.0
Barratt DeveIopme . .119.0 0.4 122.1 67.5
BeIIway . . . . . . . . . . . .789.0 13.0 793.0 540.5
BerkeIey Group Ho .1298.0 11.0 1360.0 946.0
BaIfour Beatty . . . . . .284.1 0.5 357.3 214.6
CRH . . . . . . . . . . . . .1301.0 9.0 1700.0 1053.0
GaIIiford Try . . . . . . . .491.1 8.1 530.0 332.8
Kier Group . . . . . . . .1433.0 16.0 1458.0 1097.0
Drax Group . . . . . . . .517.0 1.0 581.5 371.9
SSE . . . . . . . . . . . . . .1255.0 5.0 1423.0 1167.0
Domino Printing S . .629.0 21.0 705.0 434.3
HaIma . . . . . . . . . . . . .376.9 3.0 429.6 306.3
Laird . . . . . . . . . . . . . .166.1 -0.4 207.0 127.9
Morgan CrucibIe C . .327.7 0.4 357.1 224.0
Oxford Instrument .1100.0 77.0 1100.0 600.5
Renishaw . . . . . . . . .1492.0 2.0 1886.0 800.0
Spectris . . . . . . . . . .1637.0 39.0 1679.0 1039.0
Aberforth SmaIIer . . .605.0 0.0 714.0 494.0
AIIiance Trust . . . . . .365.8 0.8 392.7 310.2
Bankers Inv Trust . . .403.7 1.0 428.0 346.5
BH GIobaI Ltd. GB .1175.0 7.0 1212.0 1058.0
BH GIobaI Ltd. US . . . .11.6 -0.1 12.2 10.4
BH Macro Ltd. EUR . . .19.5 0.1 20.2 16.3
BH Macro Ltd. GBP 2035.0 0.0 2078.0 1661.0
BH Macro Ltd. USD . . .19.5 0.0 20.2 16.2
BIackRock WorId M .739.0 -1.5 815.5 574.5
BIueCrest AIIBIue . . .162.0 1.0 176.2 160.5
British Assets Tr . . . .125.5 -1.5 139.5 109.0
British Empire Se . . .445.6 -1.6 533.0 404.0
CaIedonia Investm .1503.0 13.0 1816.0 1337.0
City of London In . . .294.8 1.7 306.9 257.0
Dexion AbsoIute L . .140.5 0.3 151.0 130.0
Edinburgh Dragon . .242.7 -0.4 252.0 201.4
Edinburgh Inv Tru . . .473.0 -1.8 492.2 414.9
EIectra Private E . . .1633.0 33.0 1755.0 1287.0
F&C Inv Trust . . . . . .306.0 0.5 327.9 261.5
FideIity China Sp . . . . .81.6 -1.0 114.3 70.0
FideIity European . .1100.0 6.0 1287.0 912.0
HeraId Inv Trust . . . . .507.5 3.5 545.5 419.0
HICL Infrastructu . . . .119.3 0.0 121.3 112.7
Impax Environment .100.0 0.2 125.4 88.5
John Laing Infras . . .109.9 -0.1 110.0 103.4
JPMorgan American .909.5 3.5 924.0 721.5
JPMorgan Asian In . .201.4 0.5 244.0 170.1
JPMorgan Emerging .565.5 1.5 610.5 480.1
JPMorgan European .725.0 9.0 983.5 624.0
JPMorgan Indian I . . .385.0 3.9 459.0 313.1
JPMorgan Russian .560.5 0.5 741.0 415.1
Law Debenture Cor . .368.2 1.1 385.0 321.0
MercantiIe Inv Tr . . . .992.0 9.0 1137.0 823.0
Merchants Trust . . . .381.6 0.6 431.8 341.5
Monks Inv Trust . . . .331.0 0.0 367.9 298.1
Murray Income Tru . .648.0 -1.0 673.0 568.0
Murray Internatio . . .966.5 5.5 991.5 818.5
PerpetuaI Income . . .262.9 0.9 276.0 236.5
PersonaI Assets T .34250.0 50.0 34390.030210.0
PoIar Cap TechnoI . .362.0 0.4 391.2 299.5
RIT CapitaI Partn . . .1235.0 10.0 1360.0 1173.0
Scottish Inv Trus . . . .480.4 0.7 524.0 417.0
Scottish Mortgage . .679.0 4.0 781.0 565.0
SVG CapitaI . . . . . . . .257.9 19.9 279.8 165.1
TempIe Bar Inv Tr . . .896.0 -9.0 952.0 791.0
TempIeton Emergin .624.0 2.0 684.5 497.0
TR Property Inv T . . .155.8 -0.2 206.1 136.2
TR Property Inv T . . . .69.5 0.7 94.0 59.8
Witan Inv Trust . . . . .484.3 -0.4 533.0 401.5
3i Group . . . . . . . . . . .201.5 1.9 317.0 166.9
3i Infrastructure . . . .122.4 0.6 124.0 113.4
Aberdeen Asset Ma .257.4 3.2 258.1 167.8
Ashmore Group . . . .388.3 -2.1 420.0 301.5
Brewin DoIphin Ho . .155.8 3.6 185.4 113.7
CameIIia . . . . . . . . . .9700.0 -18.010950.0 8800.0
CharIes TayIor Co . . .136.3 13.3 165.0 115.6
City of London Gr . . . .66.0 0.0 93.6 61.3
City of London In . . .358.3 5.8 445.0 304.3
CIose Brothers Gr . . .707.0 4.5 875.0 590.0
CoIIins Stewart H . . . .97.5 1.5 98.0 48.5
F&C Asset Managem .67.6 0.0 89.6 56.1
Hargreaves Lansdo .460.3 0.3 646.5 402.5
HeIphire Group . . . . . . .2.1 0.0 17.4 1.4
Henderson Group . . .128.0 3.2 173.1 95.1
Highway CapitaI . . . . .13.0 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .381.4 -7.6 552.5 311.6
IG Group HoIdings . .471.8 -4.7 502.5 393.6
Intermediate Capi . . .286.0 -1.8 351.8 197.9
InternationaI Per . . . .213.6 -1.0 388.8 148.5
InternationaI Pub . . .120.9 0.2 121.5 108.6
Investec . . . . . . . . . . .398.8 7.3 522.0 318.4
IP Group . . . . . . . . . . .101.8 0.0 103.0 36.0
Jupiter Fund Mana . .241.7 -2.0 337.3 184.9
Liontrust Asset M . . . .89.9 0.0 91.4 57.9
LMS CapitaI . . . . . . . . .56.0 0.0 64.8 53.5
London Finance & . . .22.5 0.0 23.5 19.0
London Stock Exch .935.5 -1.0 1076.0 756.5
Lonrho . . . . . . . . . . . . .10.5 0.0 19.8 8.9
Man Group . . . . . . . . .137.5 0.5 309.0 104.5
Paragon Group Of . .188.5 4.3 206.1 134.6
Provident Financi . . .966.0 -4.0 1124.0 915.0
Rathbone Brothers .1215.0 7.0 1257.0 977.0
Record . . . . . . . . . . . . .11.6 0.0 35.5 11.4
RSM Tenon Group . . . .5.8 -0.2 55.0 5.7
Schroders . . . . . . . .1650.0 40.0 1906.0 1183.0
Schroders (Non-Vo .1309.0 27.0 1554.0 970.0
TuIIett Prebon . . . . . .328.5 4.9 428.6 262.3
WaIker Crips Grou . . .40.0 0.0 51.5 38.1
BT Group . . . . . . . . . .213.5 0.8 216.0 161.0
CabIe & WireIess . . . .43.6 -0.2 51.2 31.3
CabIe & WireIess . . . .20.3 0.2 76.9 14.2
COLT Group SA . . . . .92.1 0.3 156.2 84.1
KCOM Group . . . . . . . .72.8 -0.3 84.0 57.5
TaIkTaIk TeIecom . . .134.3 3.3 151.7 118.9
TeIecomPIus . . . . . . .628.5 -8.0 802.0 440.0
Booker Group . . . . . . .75.9 0.3 80.0 54.5
Greggs . . . . . . . . . . . .536.5 -1.0 550.5 445.0
Morrison (Wm) Sup .290.6 -1.0 328.0 268.5
Ocado Group . . . . . . .110.6 -0.7 285.0 52.9
Sainsbury (J) . . . . . . .292.2 -2.3 391.2 263.5
Tesco . . . . . . . . . . . . .324.5 -4.9 420.1 312.4
Associated Britis . . .1185.0 6.0 1188.0 940.0
Cranswick . . . . . . . . .832.5 -0.5 862.0 588.5
Dairy Crest Group . . .331.1 5.8 409.7 311.0
Devro . . . . . . . . . . . . .277.4 0.0 296.9 228.0
Tate & LyIe . . . . . . . . .672.5 -22.5 720.5 520.0
UniIever . . . . . . . . . .2049.0 20.0 2189.0 1793.0
Mondi . . . . . . . . . . . . .540.5 8.5 664.0 413.5
Centrica . . . . . . . . . . .291.5 -3.0 345.8 278.8
InternationaI Pow . . .328.2 -4.8 347.7 279.4
NationaI Grid . . . . . . .640.0 -7.0 649.5 543.5
Pennon Group . . . . . .686.0 -1.0 737.5 584.5
Severn Trent . . . . . .1520.0 2.0 1600.0 1375.0
United UtiIities . . . . .597.0 -4.0 637.0 551.0
Cookson Group . . . . .616.5 14.0 724.5 395.8
Rexam . . . . . . . . . . . .381.2 2.3 400.0 299.8
RPC Group . . . . . . . .383.4 -1.8 393.2 231.5
Price Chg High Low
Bovis Homes Group .489.5 4.9 499.6 326.5
Persimmon . . . . . . . .549.0 3.0 560.5 374.0
Reckitt Benckiser . .3513.0 34.0 3578.0 3015.0
Redrow . . . . . . . . . . . .128.8 -1.2 137.9 103.5
TayIor Wimpey . . . . . . .43.9 -0.2 44.8 28.7
Bodycote . . . . . . . . . .329.0 0.3 397.7 225.6
Fenner . . . . . . . . . . . .459.6 2.4 466.7 280.0
IMI . . . . . . . . . . . . . . . .925.5 12.0 1119.0 636.5
MeIrose . . . . . . . . . . .372.2 2.2 388.0 268.0
Northgate . . . . . . . . . .244.7 -2.7 346.7 190.9
Rotork . . . . . . . . . . .1888.0 -13.0 1979.0 1501.0
Spirax-Sarco Engi . .2016.0 2.0 2089.0 1649.0
Weir Group . . . . . . .1997.0 13.0 2218.0 1375.0
Evraz . . . . . . . . . . . . .428.8 -13.2 460.5 315.0
Ferrexpo . . . . . . . . . . .353.7 -7.3 499.0 238.7
TaIvivaara Mining . . .344.0 4.5 622.0 195.2
BBAAviation . . . . . . .191.8 3.7 240.8 156.0
Stobart Group Ltd . . .128.0 -0.5 155.4 112.0
AdmiraI Group . . . . . .985.0 20.5 1754.0 787.0
AmIin . . . . . . . . . . . . .359.8 6.8 427.0 270.6
BeazIey . . . . . . . . . . . .149.8 3.4 151.4 109.6
Informa . . . . . . . . . . . .411.6 0.7 461.1 313.9
ITE Group . . . . . . . . . .232.0 1.0 258.2 157.7
ITV . . . . . . . . . . . . . . . . .78.1 0.4 93.5 51.7
Johnston Press . . . . . . .6.0 0.0 12.8 4.1
MecomGroup . . . . . .201.0 -1.5 310.0 134.5
Moneysupermarket. .120.0 3.6 123.2 84.8
Pearson . . . . . . . . . .1202.0 19.0 1255.0 1013.0
PerformGroup . . . . .270.2 5.2 275.6 150.0
Reed EIsevier . . . . . .532.0 5.5 590.5 461.3
Rightmove . . . . . . . .1302.0 3.0 1408.0 857.0
STV Group . . . . . . . . . .96.5 4.0 168.0 76.3
Tarsus Group . . . . . .149.0 3.0 165.0 119.5
Trinity Mirror . . . . . . . .46.5 -0.8 89.5 37.5
UBM . . . . . . . . . . . . . .569.0 0.5 725.0 416.0
UTV Media . . . . . . . . .120.3 0.0 150.0 92.5
WiImington Group . . .84.3 0.0 180.0 78.5
WPP . . . . . . . . . . . . . .780.0 -6.5 846.5 578.0
YeII Group . . . . . . . . . . .5.8 -0.0 11.0 3.4
African Barrick G . . .517.5 -6.5 616.5 393.5
AIIied GoId Minin . . .135.9 -3.6 281.3 34.4
AngIo American . . .2860.0 -2.0 3437.0 2138.5
AngIo Pacific Gro . . .310.4 -1.8 369.3 237.9
Antofagasta . . . . . . .1347.0 21.0 1491.0 900.5
Aquarius PIatinum . .157.0 -5.5 419.0 149.0
BHP BiIIiton . . . . . . .2115.0 -15.0 2631.5 1667.0
CatIin Group Ltd. . . .449.0 22.6 451.6 334.0
Hiscox Ltd. . . . . . . . . .410.1 6.8 424.7 340.5
Jardine LIoyd Tho . . .672.0 -5.5 764.5 576.0
Lancashire HoIdin . . .738.0 1.0 774.5 532.5
RSA Insurance Gro . .112.0 -0.6 143.5 99.6
Aviva . . . . . . . . . . . . . .370.0 -0.9 477.9 275.3
LegaI & GeneraI G . . .120.8 0.3 123.8 89.8
OId MutuaI . . . . . . . . .158.0 0.8 158.9 98.1
Phoenix Group HoI . .569.5 -9.5 688.0 451.1
PrudentiaI . . . . . . . . .725.5 -2.5 777.0 509.0
ResoIution Ltd. . . . . .274.7 0.7 316.1 229.5
St James's PIace . . . .369.7 -0.4 376.0 294.0
Standard Life . . . . . . .230.0 2.0 244.7 172.0
4Imprint Group . . . . .270.0 17.0 295.0 200.0
Aegis Group . . . . . . .165.5 0.0 167.9 115.7
BIoomsbury PubIis . .114.0 1.5 138.0 91.3
British Sky Broad . . .701.0 9.0 850.0 618.5
Centaur Media . . . . . . .37.5 0.0 73.0 32.5
Chime Communicati .250.8 16.8 298.5 163.0
Creston . . . . . . . . . . . .58.0 3.0 121.0 47.0
DaiIy MaiI and Ge . . .444.0 -0.3 580.0 343.4
Euromoney Institu . .735.5 -2.5 743.0 522.5
Future . . . . . . . . . . . . . .13.0 0.5 30.0 8.3
Haynes PubIishing . .195.0 0.0 257.0 195.0
Huntsworth . . . . . . . . .40.5 -0.5 81.0 32.3
Bumi . . . . . . . . . . . . . .746.0 -0.53 777.5 733.5
Centamin (DI) . . . . . . . .99.6 1.6 154.2 78.5
Eurasian NaturaI . . .709.5 9.0 1020.6 522.0
FresniIIo . . . . . . . . . .1793.0 -4.0 2150.0 1302.0
GemDiamonds Ltd. .235.0 5.0 306.0 179.8
GIencore Internat . . .443.0 8.5 531.1 348.0
HochschiId Mining . .523.0 2.5 680.0 365.9
Kazakhmys . . . . . . .1177.0 12.0 1579.0 730.0
Kenmare Resources . .51.5 1.3 59.9 31.0
Lonmin . . . . . . . . . . .1047.0 -4.0 1880.0 941.0
New WorId Resourc .540.0 6.5 1060.0 409.4
PetropavIovsk . . . . . .743.5 -10.5 1090.0 543.5
PoIymetaI Interna . .1145.0 5.0 1175.0 877.0
RandgoId Resource 7305.0 60.0 7565.0 4425.0
Rio Tinto . . . . . . . . .3815.0 -58.5 4682.0 2712.5
Vedanta Resources 1289.0 8.0 2518.0 928.0
Xstrata . . . . . . . . . . .1206.5 8.5 1550.0 764.0
Inmarsat . . . . . . . . . . .470.1 14.9 719.5 389.3
Vodafone Group . . . .174.5 0.9 182.8 155.1
Genesis Emerging . .510.0 4.0 548.5 424.0
Afren . . . . . . . . . . . . . .130.3 1.2 171.2 73.6
BG Group . . . . . . . . .1491.5 45.5 1564.5 1144.0
BP . . . . . . . . . . . . . . . .493.4 3.7 498.9 363.2
Cairn Energy . . . . . . .353.2 4.6 531.8 291.9
EnQuest . . . . . . . . . . .116.5 -0.5 158.5 85.7
Essar Energy . . . . . .135.3 -0.5 525.5 120.0
ExiIIon Energy . . . . . .265.0 -2.0 469.7 184.2
Heritage OiI . . . . . . . .194.7 1.4 332.2 160.0
Ophir Energy . . . . . . .339.9 1.3 341.9 184.5
Premier OiI . . . . . . . . .421.7 1.8 521.0 310.0
RoyaI Dutch SheII . .2290.5 3.0 2402.0 1883.5
RoyaI Dutch SheII . .2325.5 -1.5 2489.0 1890.5
SaIamander Energy .240.0 5.1 317.6 182.3
Soco Internationa . . .311.9 3.8 400.0 278.0
TuIIow OiI . . . . . . . . .1514.0 31.0 1530.0 945.5
Amec . . . . . . . . . . . . .1110.0 39.0 1210.0 740.5
Hunting . . . . . . . . . . .814.5 -15.0 845.0 530.0
Kentz Corporation . .468.9 -5.1 508.0 347.0
LampreII . . . . . . . . . . .331.2 10.1 395.2 220.7
Petrofac Ltd. . . . . . .1517.0 46.0 1603.0 1108.0
Wood Group (John) .698.0 14.0 715.8 469.9
Burberry Group . . . .1413.0 10.0 1600.0 1092.0
PZ Cussons . . . . . . . .313.8 1.8 387.9 285.0
Supergroup . . . . . . . .559.5 -20.0 1820.0 435.2
AstraZeneca . . . . . .2997.5 -12.5 3194.0 2543.5
BTG . . . . . . . . . . . . . .340.9 0.4 344.8 210.1
Genus . . . . . . . . . . . .1067.0 25.0 1111.0 853.5
GIaxoSmithKIine . . .1409.0 16.5 1497.0 1138.5
Hikma Pharmaceuti .724.5 -1.0 869.0 555.5
Shire PIc . . . . . . . . . .2180.0 6.0 2243.0 1656.0
CapitaI & Countie . . .194.5 -1.0 203.7 142.8
Daejan HoIdings . . .2952.0 26.0 3100.0 2282.0
F&C CommerciaI Pr .103.0 0.1 108.0 92.6
Grainger . . . . . . . . . . .107.8 0.8 133.2 77.3
London & Stamford .110.6 -0.4 140.0 103.9
SaviIIs . . . . . . . . . . . . .355.2 3.3 427.1 256.2
UK CommerciaI Pro . .74.0 1.0 85.5 65.1
Unite Group . . . . . . . .193.4 6.4 224.1 152.9
Big YeIIow Group . . .296.8 6.9 344.4 218.0
British Land Co . . . . .497.0 -11.0 629.5 444.0
CapitaI Shopping . . .337.5 -1.8 408.6 288.7
Derwent London . . .1750.0 7.0 1880.0 1400.0
Great PortIand Es . . .368.2 -2.2 445.0 312.9
Hammerson . . . . . . . .381.9 0.0 490.9 345.2
Hansteen HoIdings . . .74.3 -0.1 89.5 68.0
Land Securities G . . .682.0 1.5 885.0 612.0
SEGRO . . . . . . . . . . . .230.5 3.1 331.3 195.0
Shaftesbury . . . . . . . .516.0 4.5 539.0 441.2
Aveva Group . . . . . .1717.0 -1.0 1799.0 1298.0
Computacenter . . . . .408.8 5.7 490.0 324.7
Fidessa Group . . . . .1702.0 4.0 2109.0 1444.0
Invensys . . . . . . . . . . .220.7 4.0 357.8 180.9
Logica . . . . . . . . . . . . .83.7 1.9 147.2 59.0
Micro Focus Inter . . .439.8 0.0 455.0 242.9
Misys . . . . . . . . . . . . .292.3 -6.2 420.2 214.9
Sage Group . . . . . . . .298.5 2.9 310.1 231.7
SDL . . . . . . . . . . . . . . .663.5 20.0 711.5 586.0
TeIecity Group . . . . . .652.0 -6.5 666.5 450.5
Aggreko . . . . . . . . . .2155.0 7.0 2167.0 1394.5
Ashtead Group . . . . .245.0 7.9 252.3 99.4
Atkins (WS) . . . . . . . .732.5 9.0 820.0 490.2
Babcock Internati . . .732.5 -4.0 758.0 542.0
Berendsen . . . . . . . . .455.6 -1.6 568.0 402.7
BunzI . . . . . . . . . . . . .865.5 -3.5 906.5 676.5
Cape . . . . . . . . . . . . . .437.3 6.8 591.5 295.0
Capita . . . . . . . . . . . . .637.5 3.0 786.5 611.5
CariIIion . . . . . . . . . . .321.0 9.5 403.2 281.0
De La Rue . . . . . . . . .981.5 14.0 987.5 699.0
DipIoma . . . . . . . . . . .394.1 -5.9 425.5 263.5
EIectrocomponents .236.6 2.0 294.9 182.2
Experian . . . . . . . . . . .914.5 -2.0 924.5 665.0
FiItrona PLC . . . . . . . .382.0 6.5 404.5 293.0
G4S . . . . . . . . . . . . . . .278.8 1.8 291.0 219.9
Hays . . . . . . . . . . . . . . .80.1 -0.1 130.0 58.9
Homeserve . . . . . . . .245.3 5.2 532.0 218.5
Howden Joinery Gr . .114.6 2.8 127.5 93.1
Interserve . . . . . . . . . .302.0 2.0 341.3 239.8
Intertek Group . . . . .2177.0 -2.0 2214.0 1738.0
MichaeI Page Inte . . .428.1 4.3 567.0 323.0
Mitie Group . . . . . . . .261.8 1.7 271.0 195.9
PayPoint . . . . . . . . . . .555.5 -8.5 585.0 327.3
Premier FarneII . . . . .214.3 2.3 308.8 144.5
Regus . . . . . . . . . . . . .105.2 1.8 119.0 64.0
RentokiI InitiaI . . . . . . .77.0 0.6 102.6 58.2
RPS Group . . . . . . . . .221.5 -3.5 253.0 156.6
Serco Group . . . . . . .526.5 -1.0 618.5 458.0
Shanks Group . . . . . .104.0 -2.1 130.9 90.8
SIG . . . . . . . . . . . . . . .104.8 -0.1 153.5 77.0
Travis Perkins . . . . . .942.5 11.0 1090.0 715.0
WoIseIey . . . . . . . . .2271.0 40.0 2299.0 1404.0
ARM HoIdings . . . . . .561.5 -5.0 651.0 464.0
CSR . . . . . . . . . . . . . .239.4 0.7 447.0 154.1
Imagination Techn . .616.0 0.0 627.0 296.9
Spirent Communica .132.6 1.5 160.0 105.8
British American . .3096.5 14.0 3107.5 2300.0
ImperiaI Tobacco . .2430.0 20.0 2449.0 1878.0
Betfair Group . . . . . . .873.0 -4.5 1030.0 567.0
Bwin.party Digita . . .172.1 2.5 204.0 100.6
CarnivaI . . . . . . . . . .1977.0 -3.0 2983.0 1742.0
Compass Group . . . .630.5 5.5 632.0 512.5
Domino's Pizza UK . .474.8 4.7 546.0 377.0
easyJet . . . . . . . . . . . .459.6 -0.4 476.1 301.0
FirstGroup . . . . . . . . .305.1 -1.4 378.0 301.8
Go-Ahead Group . . .1303.0 6.0 1598.0 1190.0
Greene King . . . . . . .513.0 2.0 521.5 410.0
InterContinentaI . . .1379.0 17.0 1435.0 955.0
InternationaI Con . . .180.2 -2.8 259.6 132.0
JD Wetherspoon . . . .409.4 -2.2 468.3 380.5
Ladbrokes . . . . . . . . .147.8 1.8 155.3 114.0
Marston's . . . . . . . . . . .98.8 0.6 112.0 84.6
MiIIennium& Copt . .468.0 3.4 600.5 371.2
MitcheIIs & ButIe . . . .274.4 6.4 345.7 215.6
NationaI Express . . .224.9 2.0 270.2 201.6
Rank Group . . . . . . . .139.0 -4.0 153.7 109.5
Restaurant Group . . .302.5 3.9 335.0 254.9
Spirit Pub Compan . . .55.0 1.5 55.5 35.3
Stagecoach Group . .266.5 -3.5 287.4 200.0
TUI TraveI . . . . . . . . . .204.7 4.1 250.0 136.7
Whitbread . . . . . . . .1705.0 21.0 1863.0 1409.0
WiIIiamHiII . . . . . . . . .230.4 0.4 244.1 176.8
Abcam . . . . . . . . . . . .333.0 -2.0 460.0 320.0
Advanced MedicaI . . .87.3 -0.3 96.0 64.8
AIbemarIe & Bond . .359.0 7.0 400.1 281.0
Amerisur Resource . .22.0 1.5 29.0 9.5
Andor TechnoIogy . .553.0 15.0 685.0 387.1
ArchipeIago Resou . . .69.0 0.8 79.0 55.5
ASOS . . . . . . . . . . . .1897.0 61.0 2468.0 1142.0
AureIian OiI & Ga . . . .16.8 0.3 92.0 16.0
Avanti Communicat .286.8 -0.3 628.0 248.5
BIinkx . . . . . . . . . . . . . .67.5 0.0 158.0 50.5
Borders & Souther . . .67.3 -1.0 73.3 43.5
BowLeven . . . . . . . . . .78.5 0.0 382.3 62.0
Brooks MacdonaId .1135.0 2.5 1372.5 940.0
CIuff GoId . . . . . . . . . . .96.5 0.5 125.8 66.5
Cove Energy . . . . . . .140.0 1.3 141.3 61.0
Daisy Group . . . . . . .102.0 0.0 127.0 88.0
EMIS Group . . . . . . . .430.0 0.0 580.0 397.5
Faroe PetroIeum . . . .168.8 0.5 190.3 130.0
GuIfsands PetroIe . . .174.8 3.0 342.0 142.5
GWPharmaceuticaI . .90.8 1.1 130.0 78.5
H&T Group . . . . . . . . .332.5 10.0 395.0 277.0
Hargreaves Servic .1183.0 13.0 1183.0 855.0
HeaIthcare Locums . . . .4.2 0.3 4.4 3.8
Immunodiagnostic . .395.0 6.0 1218.0 288.8
ImpeIIamGroup . . . .241.5 0.0 387.5 210.0
Iomart Group . . . . . . .139.0 -3.5 144.8 85.5
James HaIstead . . . . .482.5 0.0 495.0 410.0
London Mining . . . . .291.5 -4.5 436.5 257.5
Lupus CapitaI . . . . . .127.0 -2.5 150.0 86.0
M. P. Evans Group . .452.0 -1.0 475.0 371.0
Majestic Wine . . . . . .425.0 5.0 510.0 315.0
May Gurney Integr . .294.0 -1.0 302.0 234.0
Monitise . . . . . . . . . . . .34.5 0.0 40.0 20.5
MuIberry Group . . . .1882.0 32.0 1920.0 1065.0
Nanoco Group . . . . . . .61.0 -2.0 93.3 38.0
NauticaI PetroIeu . . .324.0 -6.5 453.3 223.5
NichoIs . . . . . . . . . . . .606.3 2.3 615.0 410.0
Numis Corporation . . .93.5 -0.3 126.0 72.0
Pan African Resou . . .17.8 0.0 17.8 9.5
Patagonia GoId . . . . . .41.0 -0.8 70.0 37.3
Prezzo . . . . . . . . . . . . .66.5 0.0 71.5 53.5
Pursuit Dynamics . . . .95.0 -0.8 409.0 67.0
Rockhopper ExpIor .343.8 -2.3 357.5 141.0
RWS HoIdings . . . . . .471.5 9.5 481.8 329.8
Secure Trust Bank .1007.5 0.0 1030.0 755.0
Songbird Estates . . .105.0 -2.0 160.3 103.0
VaIiant PetroIeum . . .413.3 0.0 645.0 400.0
Young & Co's Brew . .645.5 20.0 712.0 565.0
SVG CapitaI . . . . . . . .257.9 8.4
Oxford Instruments .1100.0 7.5
Kesa EIectricaIs . . . . .85.1 5.9
CatIin Group Ltd. . . .449.0 5.3
Smith (DS) . . . . . . . . .174.5 5.3
Amec . . . . . . . . . . . .1110.0 3.6
Domino Printing Sc .629.0 3.5
Unite Group . . . . . . . .193.4 3.4
Ashtead Group . . . . .245.0 3.3
Inmarsat . . . . . . . . . . .470.1 3.3
Supergroup . . . . . . . .559.5 -3.5
Aquarius PIatinum . .157.0 -3.4
Tate & LyIe . . . . . . . . .672.5 -3.2
Evraz . . . . . . . . . . . . .428.8 -3.0
Rank Group . . . . . . . .139.0 -2.8
AIIied GoId Mining . .135.9 -2.6
British Land Co . . . . .497.0 -2.2
Misys . . . . . . . . . . . . .292.3 -2.1
Ferrexpo . . . . . . . . . .353.7 -2.0
Shanks Group . . . . . .104.0 -2.0
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
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ELECTRONIC & ELECTRICAL EQ.
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FIXED LINE TELECOMS
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MEDIA
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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:
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AUTOMOBILES & PARTS
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MINING
NONEQUITY INVESTM. COMM.
Tsy 5.000 12 . . . .100.29 -0.05 104.2 100.3
Tsy 5.250 12 . . . .101.56 -0.03 105.4 101.5
Tsy 9.000 12 . . . .103.75 -0.39 111.3 103.3
Tsy 4.500 13 . . . .104.36 -0.03 106.5 104.4
Tsy 2.500 13 . . . .283.20 -0.03 287.7 279.3
Tsy 8.000 13 . . . . .112.30 -0.02 116.9 112.2
Tsy 5.000 14 . . . . .111.63 -0.03 112.9 109.1
Tsy 7.750 15 . . . .100.00 0.00 106.3 99.4
Tsy 4.750 15 . . . . .114.50 0.03 115.4 108.6
Tsy 8.000 15 . . . .127.58 0.02 129.2 123.7
Tsy 2.500 16 . . . .342.57 0.16 344.2 312.1
Tsy 4.000 16 . . . . .113.71 0.16 114.7 104.9
Tsy 1.250 17 . . . . .115.73 0.20 116.6 106.7
Tsy 12.000 17 . . .121.50 0.38 128.7 120.7
Tsy 8.750 17 . . . .140.32 -0.16 141.9 132.9
Tsy 5.000 18 . . . .121.29 0.16 122.5 109.7
Tsy 4.500 19 . . . . .119.32 0.12 120.7 105.4
Tsy 3.750 19 . . . . .114.06 0.07 115.6 99.4
Tsy 4.750 20 . . . .121.34 -0.08 123.5 106.6
Tsy 2.500 20 . . . .363.23 0.02 367.1 314.0
Tsy 8.000 21 . . . .149.96 -0.26 153.4 133.8
Tsy 4.000 22 . . . . .115.22 -0.36 118.2 99.0
Tsy 1.875 22 . . . .126.33 -0.18 129.1 111.3
Tsy 2.500 24 . . . .327.27 -0.18 334.7 275.6
Tsy 5.000 25 . . . .126.53 -0.53 130.6 107.4
Tsy 1.250 27 . . . .122.64 -0.73 127.0 104.8
Tsy 4.250 27 . . . . .117.50 -1.12 122.7 97.9
Tsy 6.000 28 . . . .141.79 -1.13 148.0 119.5
Tsy 4.125 30 . . . . .311.73 -1.08 322.8 262.9
Tsy 4.750 30 . . . .123.86 -1.47 130.5 103.0
Tsy 4.250 32 . . . . .116.29 -1.67 123.1 96.0
Tsy 4.250 36 . . . . .116.26 -1.85 123.9 95.0
Tsy 4.750 38 . . . .125.37 -1.92 134.2 102.8
Tsy 4.500 42 . . . .121.71 -2.08 130.8 98.9
% %
33
Wealth Management | Markets
US private equity giant KKR posted a
slump in a key profitability measure
last night but told investors it would
pay a record cash dividend.
Fourth quarter economic net
income dropped 60 per cent year-on-
year to $285.5m, underlining the chal-
lenges facing buyout groups when
they go public.
Scott Nuttall, head of KKRs global
capital and asset management group,
said: We continue to see good
progress in 2011, but the funds grew
less in 2011 than in 2010 and that is
why you see the earnings down.
The group will make a fourth quar-
ter payout of 32 cents per common
unit, bringing its 2011 dividend to 72
cents, an all-time high.
KKR, the owner of Toys R Us and
internet domain registration firm Go
Daddy, derives its income from fees it
charges its fund investors to manage
assets and execute transactions and its
share of the investment profits of its
funds, known as carried interest.
Fee-related earnings were $116.6m
in the fourth quarter, up 22.6 per cent
from a year ago. Carried interest,
realised when a deal is completed and
tied to the performance of assets, fell
75.7 per cent to $54.1m in the quarter.
This is not just because economic
turmoil eroded the profitability of its
companies, but also because market
volatility held back its funds from
appreciating at the same fast pace as
in 2010.
KKR dividend
hits high but
earnings drop
NAT Rothschild is highly vulnerable to
a coup attempt by rival investors in his
Indonesian coal mining venture Bumi,
as they square up for a pitched battle
over control of the company.
Bumis Indonesian investors, the
Bakrie Group and tycoon Samin Tan,
have stepped up their bid to kick
Rothschild and his supporters off the
board and replace them with allies.
The firms Indonesian owners con-
trol 43 per cent of voting shares versus
Rothschilds 12 per cent, leaving the
balance of power with the seven per
cent owned by a mix of City and sover-
eign wealth funds.
Rothschild currently thinks he has
the support of all the non-Indonesian
investors, but his case has been weak-
ened by a row last autumn, in which
he leaked a letter chastising the board
to the media before even sending it.
One source close to the situation
said: Most of the board has been pret-
ty unimpressed with Nat. It could be
terminal. Hes fallen out with every-
one. The source added that independ-
ent director Lord Renwick is still
furious about the letter.
Samin Tan will fly into London next
week on a major charm offensive to
put his case to BlackRock, Abu Dhabi
Investment Council, Fidelity, Generali
and Schroders, among others.
Rothschild
vulnerable to
Bumi coup
KKR co-founder Henry Kravis Picture: Getty
BY PETER EDWARDS
PRIVATE EQUITY

BY JULIET SAMUEL
MINING

News
CITYA.M. 10 FEBRUARY 2012 5
ANALYSIS l KKR & Co. L.P.
$
3Feb 6Feb 7Feb 8Feb 9Feb
15.00
14.80
14.60
14.40
15.06
9 Feb
CREDIT Suisse made its first quarterly
loss since 2008 last year, the bank
revealed in its results yesterday.
The bank lost nearly SFr1bn
(690m) pre-tax and SFr637m in net
losses after revenues plunged by over
a third for the group.
The investment bank was worst
hit: it saw top-line income fall away
by 64 per cent in the fourth quarter
compared to the same period in
2010, coming to SFr1.25bn. Costs fell
only 14 per cent to SFr2.53bn in the
quarter.
Overall the division lost a cata-
strophic SFr1.3bn in just the last
three months of the year. For the
whole year, the numbers were also
dismal: its pre-tax profits all but dis-
appeared, dropping from SFr3.53bn
to SFr79m.
Earnings from managing the assets
of rich clients also fell off sharply: its
wealth management division saw pre-
tax profits drop by 53 per cent and
the private banks earnings fell by 43
per cent. Profits also more than
halved in asset management.
Revenue drop
pushes Credit
Suisse to loss
UBS has launched a major bonus
clawback at its struggling investment
bank as it continues a round of belt-
tightening in the aftermath of an
alleged rogue trade.
It has told staff it will take back 50
per cent of share-based bonuses
awarded last year to investment
bankers whose rewards were more
than SFr2m (1.39m).
UBS had awarded share-based
bonuses that were due to vest this
year and in 2013 and 2014 but the
banks compensation rules mean that
the board can claw back between 10
and 50 per cent of shares among the
top earners if a division records an
operating loss.
On Tuesday UBS said its investment
bank had been hit by falling revenues
in what it called a lackluster [fourth]
quarter. The division made a pre-tax
loss of SFr256m, or SFr186m once
gains from its own credit and the
trading incident are stripped out.
Among the few bright spots at
the division were foreign currency
trading, short and long-term rates
and cash equities in Asia-Pacific.
Investment banks were hit last year
as trading and advisory income fell,
with clients pulling back from mar-
kets due to the Eurozone debt crisis,
and stopped doing deals.
UBS is now scaling back its riskier
investment banking activities in
order to focus on its respected private
bank.
A spokesman for UBS declined to
say how many employees will be
affected by the clawback.
More details are expected to be
revealed when the bank posts its
annual report on 15 March.
Cameron is slammed for
female board quota call
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A SUGGESTION by David Cameron
that quotas could be introduced to
force an increase in the number of
women on UK boards has been met
with criticism, after the Prime
Minister suggested that the countrys
economic recovery is being held back
by a lack of women in top jobs.
Speaking at a summit in
Stockholm, Cameron said he was
keen to accelerate the process of
getting more women onto FTSE
boards, and said he could not rule
out quotas if targets were not met.
Last year a comprehensive report
led by Lord Davies called for FTSE 350
companies to boost the percentage of
women at their board tables to 25 per
cent by 2015.
But according to research by execu-
tive search firm Norman Broadbent,
if boards continue to change at their
current rate, the FTSE 100 will miss
Lord Davies target by two years.
The Institute of Economic Affairs
hit out at Camerons latest com-
ments, with director general Mark
Littlewood saying: Proposals to force
companies to increase the number of
women on boards are extremely ill-
advised... Burdensome overregulation
of this kind is not a driver of econom-
ic growth. THE FORUM: P23
UBS in bonus clawback after
investment profits disappear
BY JULIET SAMUEL
BANKING

POLITICS

News
6 CITYA.M. 10 FEBRUARY 2012
Picking bank winners is a losers game
T
HE grim news for bankers just
keeps coming. Revenues at
Credit Suisses investment
bank fell off a cliff last quarter:
overall they were down by nearly two
thirds on the end of 2010, but in
fixed income the decline 96 per
cent was particularly sharp.
Chief executive Brady Dougan is
scrambling to respond: the invest-
ment bank slashed three per cent of
its staff last quarter, or 600 jobs. For
those who remained, their pay also
fell by 25 per cent or by more if one
excludes deferred bonuses awarded
in previous years. But ultimately,
change costs money: the bank had to
pay out SFr414m in severance pay to
those it laid off, and it will have to
stump up more as it cuts costs.
Like other banks, it is also incur-
ring expenses from write-downs on
assets as it shrinks its balance sheet.
Unlike some others, it is going ahead
anyway, rather than hanging on and
waiting (fruitlessly, in many cases)
for values to rise.
The balance sheet matter has
prompted some creative thinking,
with the bank transferring a large
chunk of unwanted assets into a
bonus scheme that will pay out to
staff in due course.
But cutting costs is of little use if
revenues are falling by far more.
Investment banks are now battling
it out over a shrinking pie: Credit
Suisse might have moved quickly,
but quick thinking is no guarantee
of success in this brutal fight for
survival.
BOTTOMLINE
Analysis by Juliet Samuel
ANALYSIS l Credit Suisse
CHF
3Feb 6Feb 7Feb 8Feb 9Feb
26.00
25.25
25.50
25.75
25.00
24.75
24.50
24.25
24.35
9 Feb
98%
Decline in full-year profit
at investment bank
SFR414m
Cost of laying off
investment bankers
SFR998m
Fourth quarter
pre-tax loss
BY PETER EDWARDS
BANKING

Brady Dougan
has overseen
huge losses
groups investment bank and holds
high hopes that it will soon be a seri-
ous rival to the likes of Goldman Sachs
and Morgan Stanley.
BarCaps position as an adviser
to Xstrata was challenged by one
of the other banks working on
the deal, after it was brought in
very late on in the process.
Barclays name was not on the
original press release announc-
ing the deal.
Yesterday Thomson
Reuters said it had
received a detailed con-
firmation letter
signed by a member of
the Xstrata executive
committee, sufficient
for it to give accredita-
tion. Thomson Reuters
has a 10 day period
during which banks
can challenge decisions.
Barclays is due to
announce full year
results today.
REUTERS RESULTS: P9
BARCLAYS Capital was yester-
day granted accreditation
from Thomson Reuters for its
role as an investment bank-
ing adviser to Xstrata in its
56bn merger deal with
Glencore.
Its inclusion as an adviser is
massively important to the
bank, elevating it from
eighth to sixth place in
the Thomson Reuters
M&A league table, as it
seeks eventual top
three status in the
rankings for mergers
and acquisition work.
Bob Diamond,
Barclays chief execu-
tive, has invested
heavily in the
BarCap wins
accreditation
on Xstrata
BY DAVID HELLIER
ADVISERS

News
7 CITYA.M. 10 FEBRUARY 2012
PEPSICO chief executive Indra Nooyi
has laid out a radical plan to turn
around the companys North
American soft drink business by cut-
ting 8,700 jobs and ramping up adver-
tising spend by $500m at the
expense of short-term earnings.
The firm reported a fourth quarter
profit of $1.42bn (897m), up from
$1.37bn a year earlier and topping
estimates.
PepsiCo expects to cut three per
cent of its global workforce across 30
countries as part of a plan to save an
extra $1.5bn over the next three years.
Nooyi has come under pressure
from Wall Street for a stagnant stock
price, and has pledged to ramp up
advertising using some of the savings.
She has been criticised for taking
her eye off the core business of sodas
to expand into healthier products,
such as drinkable oatmeal.
Pepsi plans to slash 8,700
jobs in cost-cutting drive
Pepsi CEO Indra Nooyi has proposed a radical turnaround plan Picture: Reuters
BY JAMES WATERSON
CONSUMER

Barclays Bob
Diamond has set
ambitious targets
NEWS | IN BRIEF
Oracle to pay $1.9bn for Taleo
Business management software maker
Oracle is planning to buy Taleo, a maker
of web-based software for recruiting
employees, for about $1.9bn (1.2bn) as
a war heats up for control over the fast-
growing cloud computing market. The
Taleo deal value of $46 a share offers
an 18 per cent premium to Taleo's
Wednesday close of $38.94.
Tata Steel posts quarterly loss
Indias Tata Steel, the world's seventh
biggest steelmaker, yesterday posted
an unexpected quarterly loss, its first in
more than two years, as higher raw
material costs and weak demand in
Europe hurt margins. Tata Steel report-
ed a net loss of 6.87bn rupees for its
fiscal third quarter ended December,
compared with a net profit of 9.49bn
rupees a year earlier. Net sales rose 15
per cent to 329.64bn rupees.
Ceres delays IPO until next week
Biofuels developer Ceres has delayed its
expected initial public offering until next
week, IFR reported yesterday, just a day
after reducing its expected price range
to between $16 and $17 per share from
between $21 and $23 earlier. Last
month, the company had said it expect-
ed to raise about $97.8m from its IPO
of 5m shares.
Three bidders left in Peacocks sale
Edinburgh Woollen Mills has pulled out
of talks to buy Peacocks, a source said
last night, leaving three potential bid-
ders in the race to buy the collapsed
retailer out of administration. KPMG,
the administrators to Peacocks, is
expected to make a final decision early
next week.
TOUGH trading in Spain and Italy
dragged Vodafones third quarter
group revenues down 2.3 per cent to
11.6bn, causing the mobile phone
operator to fall short of forecasts.
Spanish revenues fell 8.8 per cent
albeit an improvement on last quar-
ters drop of 9.3 per cent to 1.1bn,
while Vodafone fared worse in Italy,
dropping 4.9 per cent compared to a
three per cent decline in the previous
quarter.
However, the network confirmed it
would stick to its full-year guidance.
Service revenues in the UK grew
one per cent in the period to 1.27bn,
thanks to strong demand for mobile
data services where revenues jumped
13 per cent. European data revenue
was up 22 per cent, boosting mobile
internet revenues 55 per cent.
Vodafone added 174,000 new con-
tract customers in the quarter, and
said 39 per cent of its UK customers
are now on smartphone compared to
a European smartphone penetration
of 24 per cent.
Vodafone chief executive Vittorio
Colao told reporters: This is the high-
est level in Europe, which sets Great
Britain as a leader in the smartphone
market despite displaying slightly
lower consumer confidence.
Overall UK customer numbers
dropped 1,000 to 19.3m due to pre-pay
mobile termination rates.
Vodafones results were buoyed by
a strong growth in India and Turkey,
where service revenues were up 20
per cent and 24 per cent respectively.
India, which generated 1bn in the
quarter and saw data revenues jump
46 per cent, ended the quarter with
31m data users following the launch
of 3G services this time last year.
Last week Vodafone announced the
sale of Essars share of its Indian oper-
ations to Piramal Healthcare for
385m, taking the division a step clos-
er to a possible public offering.
However, Colao told reporters that
the stages still to be taken will ensure
the IPO does not come before 2013.
Free cash flow was up 35 per cent
to 1.47bn at the end of the quarter.
Shares rose one per cent to 174.5p.
Data demand
lifts Vodafone
but sales slide
BY LAUREN DAVIDSON
TELECOMS

SHARES in Alibaba.com were suspend-

ed from trading on the Hong Kong
Stock Exchange yesterday as the web-
sites parent Alibaba Group prepared a
statement.
The Chinese e-commerce giant is
reportedly planning to buy back the
40 per cent stake Yahoo holds in it,
and has been moving towards raising
a $3bn (1.89bn) loan for this pur-
pose.
Billionaire chairman Jack Ma said
in a statement to the stock exchange
that shares will be suspended pend-
ing clarification of speculation in
relation to a transaction... which may
be potentially price sensitive.
Yahoos stake in Alibaba could be
worth almost $13bn, based on the
$1.6bn paid for a five per cent stake in
the Chinese company by a group of
investors in November.
Alibaba suspends share trading
as major announcement looms
TECHNOLOGY

FACEBOOK has added 26 new docu-

ments to its filing with the SEC orig-
inally submitted last week in
preparation for the firms IPO which
outline its relationship with Zynga.
Facebook last week disclosed that
12 per cent of its 2011 revenues came
from the gaming company, sending
Zynga shares rocketing 17 per cent.
However, the FarmVille creators
stock dropped four per cent yesterday
as Facebook revealed the exclusive
nature of their relationship, which
stipulates that Zynga uses Facebook as
its sole social platform and offers the
network some exclusive titles.
In return, Facebook will enable the
game-maker to build its own platform
on top of the social networks, and has
agreed not to develop its own games
otherwise Zynga can terminate the
relationship.
The companies share a mutual
commitment to reach certain growth
targets on monthly unique users for
both brands products and services.
While similar terms were included
in Zyngas IPO filing last year, a new
clause has been revealed which dis-
closes an ad revenue sharing agree-
ment between the two platforms,
referring to Zyngas implementation
of Facebook ads on its non-
Facebook.com platforms.
Zynga said in December it relies on
Facebook for 90 per cent of revenues.
Its complicated: Facebook is
in a relationship with Zynga
BY LAUREN DAVIDSON
TECHNOLOGY

News
8 CITYA.M. 10 FEBRUARY 2012
Zuckerbergs company outlined details of its corporate agreements with Zynga
ANALYSIS l Vodafone
p
3Feb 6Feb 7Feb 8Feb 9Feb
180
174
176
178
172
174.50
9 Feb
LINKEDIN, the social network for pro-
fessionals, last night beat Wall Street
expectations to announce fourth
quarter revenues of $167.7m (105m)
up 105 per cent from a year earlier.
The majority of the growth came
from LinkedIns recruitment arm,
which now provides half the firms
revenue after benefiting from
improved jobs numbers in the crucial
US market.
Net income remained low at $6.9m
for the final quarter of 2011, up from
$5.3m for the equivalent period last
year.
The social network has had a mixed
year as income shot up but investors
became increasingly infuriated by a
plummeting share price. A long
awaited IPO in May saw stock climb to
$109 before losing almost half its
value in the ensuing months,
prompting accusations that the com-
pany had been over-hyped.
Strong revenue growth is placating
these fears and the firm says income
will grow even more in 2012, target-
ing year end revenue of $840-860m.
Steve Sordello, LinkedIns chief
financial officer, insisted that his
firm would continue to focus on
growth at the expense of profits: In
2012, we will continue to invest in our
product, engineering, and sales infra-
structure to capitalise on our long-
term opportunity.
Shares surged up eight per cent to
$82.65 in after hours trading.
LinkedIn says
its revenues
have doubled
THOMSON Reuters made a loss in its
fourth quarter after forking out $3bn
(1.9bn) due to a goodwill charge on its
waning financial services division.
The business news and data
provider ended the period $2.6bn out
of pocket, down from a $307m profit
last year, despite rolling in a three per
cent increase revenue of $3.6bn.
This brought revenues for the year
to $13.8bn, up six per cent on 2010,
while the company made an annual
operating loss of $705m.
Thomson Reuters admitted disap-
pointing sales and slow uptake of its
desktop product Eikon, which ended
the period with 15,000 active users, up
from 8,000 last quarter.
Growth was strong in Thomsons
professional legacy division, which
caters to legal, tax and accounting
firms, with income up nine per cent to
$1.5bn accounting for 42 per cent of
total revenues.
However, the groups markets divi-
sion, which competes with Bloomberg
and Dow Jones, grew just two per cent
and incurred a $50m charged related
to a restructure.
Thomson Reuters declined to com-
ment on speculation that it is in talks
to buy the Financial Times after the
pink-tinged newspaper turned down
an acquisition offer from Bloomberg.
Reuters reports
a loss on $3bn
goodwill payout
BY JAMES WATERSON
INTERNET

MEDIA

News
CITYA.M. 10 FEBRUARY 2012 9
ANALYSIS l LinkedIn Corp
$
3Feb 6Feb 7Feb 8Feb 9Feb
82
79
80
81
78
77
76
75
76.39
9 Feb
LinkedIns co-founder Reid Hoffman watches his firms revenue rise. Picture: GETTY
www.RateSetter.com Customer Phoneline: 08442490115
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JULIAN DIXON | WINTERFLOOD SECURITIES
Yes I do use it. It started off as a laugh around the office but Ive
found that you can actually meet the odd client and make some
business connections from the social site.
GEORGE HAYWOOD | SMITH & WILLIAMSON
Yes, I use it at least once a week. It is good for business and net-
working, I also use the other social networks but I think LinkedIn
is most beneficial to City workers.
WENDY NOBLE | RBS
Personally, no. I do not use any of the social networking sites
including LinkedIn. I gave it a go once but ended up forgetting my
password - I find it a hassle that I dont need to deal with.
* These views are those of the individuals below and not necessarily those of their company
CITY VIEWS: DO YOU USE LINKEDIN?*
Interviews by PhoebeTorrance
News
11 CITYA.M. 10 FEBRUARY 2012
A THIRD prominent shareholder in
Xstrata has come out against the
miners 56bn mega-merger with
commodities trader Glencore.
Chad Deakins, a fund manager
with RidgeWorth, a US-based
investment company, told
Bloomberg that the effective eight
per cent premium implied in the
share swap ratio for the deal signif-
icantly undervalues Xstrata.
Xstrata is a prized asset, he said.
To our view, theyre not offering
much of a premium at all. Theyre
underpaying.
Deakins dim view of the deal
makes him the third major Xstrata
shareholder to speak out against it
after Schroders Richard Buxton
and Standard Lifes Peter
Cummings both voiced their oppo-
sition.
The merger requires 75 per cent
approval from Xstratas sharehold-
ers, but because Glencore owns 34
per cent of the company already
and is therefore barred from vot-
ing, opposition from just 16.5 per
cent would be enough to wreck the
deal.
The main issue is the premium,
which investors say is not nearly
enough for one of the worlds
biggest coal producers.
But there are also concerns about
the management make-up: if it goes
ahead, the deal would see Xstrata
chief executive Mick Davis take over
as CEO of the combined group, with
his rival at Glencore Ivan
Glasenberg taking on a deputy role.
But it is not clear how long such
an arrangement could last: it is
understood that Glencores senior
management see Davis reign as
only temporary.
Buxton said: Its probably a
great deal for the Xstrata manage-
ment, but its a poor deal for
Xstratas majority shareholders.
Davis and Glasenberg now have
their work cut out to convince
investors to back the deal.
Rio Tinto pair
forego bonus
after losses
BY JULIET SAMUEL
M&A

CANACCORD Financial yesterday

announced it was launching a
$1bn (630.8m) fund to invest in
the resources sector in Canada.
The firm, one of the biggest
investment banks in Canada, will
work in partnership with Chinas
Eximbank.
The fund will be branded the
Canada-China Natural Resource
Fund. The deal was signed yester-
day by Canaccord chief executive
Paul Reynolds and Zhu Xinqiang,
vice president of Eximbank.
The Canada-China Natural
Resource fund will help companies
in Canada, whether already listed
or seeking to go public.
It will be run separately to
Canaccords other funds and is
seeking to attract investors prima-
rily in China but also across the
globe.
The aim is to give a boost to the
resources sector in Canada, which
has already seen an influx of
investment from China. Energy
and mining are the sectors which
have received particular attention.
Canaccord has increasingly
looked to do business with China
and acquired a leading boutique
Chinese investment bank, the
Balloch Group, in November 2010.
Reynolds said: Resource Fund
demonstrates the importance of
Canadian financial markets in the
development of resource compa-
nies and the continued expansion
of Chinese participation in natural
resource projects around the
world.
The agreement was signed dur-
ing a trade mission by the
Canadian authorities to China, led
by Prime Minister Stephen Harper.
Canaccord to launch $1bn fund for
Canada resources after China deal
FUND MANAGMENT

THE TOP two executives at global

miner Rio Tinto yesterday said they
would not take bonuses after the com-
pany lurched into a loss triggered by
its aluminium business.
A surplus of aluminium and rising
input costs have hammered margins
in the industry, sending the value of
Rios aluminium unit Alcan plummet-
ing.
Rio paid $38bn (23.9bn) for the
business at the height of the com-
modities boom in 2007. And yesterday
it announced an $8.9bn charge for
Alcan.
Total one-off charges including a
writedown on its diamonds business
totalled $9.3bn, causing net results for
BY JOHN DUNNE
MINING

July-December to swing to a loss of

$1.76bn compared with a profit of
$8.4bn the previous year.
The aluminium division, which the
company plans to shrink by hiving off
most of its Australia and New Zealand
assets, just broke even with earnings
of $63m in the half year.
The disappointing performance
prompted chief executive Tom
Albanese and chief financial officer
Guy Elliott to forego any bonus.
Albanese received salaries, bonus
and benefits of $2.97m (1.87m) in
2010. He said yesterday: As the acqui-
sition of Alcan happened on my
watch, I felt it only right not to be con-
sidered for an annual bonus this year.
Albanese painted a dismal picture
for aluminium in the short and medi-
um term, with China adding new
capacity in the West despite the over-
supplied market.
These pressures, together with the
strengthening of some currencies and
escalating raw materials, may contin-
ue to squeeze our margins in the
medium term, he said in a presenta-
tion. The environment in the alu-
minium industry is tough.
Chairman Jan du Plessis said he
backed Albaneses decision to waive
any bonus.
ANALYSIS l Rio Tinto PLC
p
3Feb 6Feb 7Feb 8Feb 9Feb
3,950
3,800
3,850
3,900
3,815.00
9 Feb
Tom Albanese is the latest FTSE 100 boss to decline a bonus
Third Xstrata shareholder
opposes Glencore merger
ANALYSIS l Xstrata
p
3Feb 6Feb 7Feb 8Feb 9Feb
1,300
1,240
1,260
1,280
1,220
1,200
1,206.50
9 Feb
GKP hires
advisers for
Iraqi sale
IRAQ-FOCUSED oil company Gulf
Keystone Petroleum yesterday said it
had appointed corporate advisers to
help it sell its 20 per cent stake in the
Akri-Bijeel block in Kurdistan, north-
ern Iraq, almost five months after put-
ting it on the market.
The group is taking on Strand
Hanson and Perella Weinberg to
assist its advisory team, which also
includes broker Mirabaud Securities.
Gulf Keystones partner in Akri-
Bijeel and the operator, MOL, holds
the remaining 80 per cent stake. MOL
estimates that the Akri-Bijeel discov-
ery contains around 2.4bn barrels of
oil and the Hungarian firm is contin-
uing an exploration and appraisal
programme to find more oil
prospects in the block.
Gulf Keystone has been trying to
sell its stake to focus on its Shaikan oil
discovery. Its shares rose 8.3 per cent to
close at 342.5p.
BY HARRY BANKS
ENERGY

BRITISH LAND has seen growth of its

net asset value stall in the third quar-
ter as the ongoing consumer down-
turn led to a slight dip in value across
its retail portfolio.
The landlord whose tenants
include Tesco, Sainsburys and
Debenhams said its retail estate,
which accounts for 61 per cent of its
property portfolio, depreciated by 0.4
per cent during the three months to
the end of December to 6.3bn.
Peel Hunt analyst James Carswell
said the fall didnt come as a surprise
as struggling retailers put pressure
on landlords to lower rents and look
to exit poorer performing stores.
British Land said half of its London
office development programme was
pre-let, after a recent agreement with
insurer Aon at its Cheesegrater sky-
scraper, securing 32m of annual
income.
Profit rose 6.3 per cent to 68m
year-on-year while the value of its
portfolio increased 0.1 per cent.
Chief executive Chris Grigg said:
The current economic outlook is
uncertain, but overall our business is
defensively positioned today and will
benefit further as economic growth
returns.
Retail gloom
takes toll on
British Land
BY KASMIRA JEFFORD
PROPERTY

British Lands Chris Grigg said the business is well-positioned Pic: Laura Lean/CITY A.M.
News
12
ANALYST VIEWS: WERE BRITISH LANDS
QUARTERLY RESULTS ON TRACK?Interviews by Kasmira Jefford

JAMES CARSWELL | PEEL HUNT

We think retail, operationally, performed well, but the small valuation
declines might be further signs of things to come. Their development pipeline is
very well de-risked. They have de-risked over 50 per cent through pre-lets like
Aon which is clearly a huge advantage over their competitors.

ALISON WATSON | LIBERUM

NAV, earnings and dividend results were broadly in-line with our expecta-
tions... A solid operational performance with occupancy recording an increase over the
quarter to 98 per cent from 97.8 per cent at the half year and lettings and re-gears
continued to be achieved well ahead of estimated rental value.

MARTIN ALLEN | DEUTSCHE BANK

The essentially unchanged values reported by the group in the quarter to
end-December comprised essentially flat market rents...Valuations in the quarter bene-
fited from the pre-let to Aon at The Leadenhall Building, which helped boost the valu-
ation of the group's City holdings from "virtually flat" to +0.8 per cent.

ANALYSIS l British Land

p
3Feb 6Feb 7Feb 8Feb 9Feb
510
495
500
505
490
497.00
9 Feb
DIAGEO, the worlds biggest spirits
group, said it has beaten its medium-
term targets, as strongly growing
emerging markets and a slow recov-
ery in North America helped to offset
weakness in Europe in the first half of
the year.
Chief executive Paul Walsh said
while he remained cautious about
Diageos future, the firm was well
placed to meet its medium-term
financial targets for six per cent
annual sales growth, margin expan-
sion and earnings growth of more
than 10 per cent.
The owner of Johnnie Walker
whisky and Smirnoff vodka reported
a seven per cent rise in operating
profits to 1.87bn in the six months
to December 2011 as underlying sales
grew seven per cent.
Diageo said it expects the emerging
markets of Latin America, Africa and
Asia to continue to grow and was
encouraged by North America, while
Europe had now stabilised with flat
sales.
Its emerging market business grew
net sales by 18 per cent and now
accounts for almost 40 per cent of the
business, driven by strong perform-
ances from Johnnie Walker whisky
especially in Brazil, China and South
Africa.
In Europe, the group saw a strong
performance from Germany and
France but suffered a decline in net
sales in Britain, as well as Spain,
Greece and Ireland.
Shares rose 0.44 per cent to 1,468p.
Diageo profits
despite weak
Europe sales
BRITISH gaming group Rank has
reported a steady increase in profits,
boosted by its flagship casino business,
despite faring badly in Spain.
The group generated revenues of
295.9m in the second half of 2011, up
three per cent, of which 125.8m came
from Grosvenor Casinos and 117.4m
from Mecca Bingo.
Grosvenor profits jumped 11 per
cent to 20.4m while Mecca Bingo
pocketed 14.8m, up eight per cent.
However, revenues from Rank
Espaa tanked 87 per cent to 0.5m.
Rank is receiving almost five per
cent more customers through its
British doors, although the average
consumer spent less per visit. But the
firm saw the largest growth in its
online division, where revenues were
up almost 25 per cent to 37.8m.
Rank chief executive Ian Burke told
City A.M.: Mecca is number one in the
internet bingo market, and were start-
ing to get our act together in online
casinos too.
Were developing products which
work across all digital channels, and
mobile is a particularly strong area of
growth.
He declined to elaborate on last
weeks announcement that Rank are
in discussions to buy Gala casinos.
Shares fell three per cent to 138p.
Rank tanks in
Spain yet sees
firm UK growth
BY KASMIRA JEFFORD
CONSUMER

GAMING

News
13 CITYA.M. 10 FEBRUARY 2012
ROBERT Walker, the chairman of
Travis Perkins, was appointed chair-
man of Enterprise Inns yesterday as
the UKs biggest pub landlord
revealed revenue increases.
Average income per pub grew one
per cent on a like-for-like basis for the
18 weeks to 4 February, while the
average pub upped profits by five per
cent.
Beacon delivered the strongest
growth, as the 110 pubs under its
management upped profits almost
30 per cent.
Enterprise, which has a portfolio of
6,289 pubs, has increased the prices
it charges tenants by 4.3 per cent, as
next months Budget is expected to
increase duty on alcohol sales.
Bank borrowings were reduced to
420m, down from 446m at the end
of September.
Shares soared 22 per cent to 52p.
Enterprise Inns rockets
on steady revenue rises
Robert Walker will replace Hubert Reid as chairman of Enterprise Inns
BY LAUREN DAVIDSON
LEISURE

ANALYSIS l Diageo
p
3Feb 6Feb 7Feb 8Feb 9Feb
1,490
1,460
1,470
1,480
1,450
1,440
1,430
1,468.00
9 Feb
TATE & LYLE said it was on track to
deliver a good performance for the
full year to March, with operating
profits in line with expectations
despite experiencing slower growth
in the third quarter.
Shares fell more than three per
cent yesterday, making it one of the
worst performers in the FTSE 100,
after the maker of Slenda sweetener
said the rate of volume growth at its
speciality food ingredients division
was slower than in the first half.
Its small food system division also
disappointed. Shares closed down
22.5p at 672.5p.
ROLLS-ROYCE yesterday reported a 21
per cent rise in full-year profit, trig-
gered by demand from airlines for
more fuel-efficient planes, and said it
expects further progress in 2012.
The worlds second-largest maker
of aircraft engines behind General
Electric reported underlying 2011 pre-
tax profits of 1.16bn compared with
a forecast for 1.15bn.
This prompted the firm to raise its
full-year dividend nine per cent to
17.5p. Revenues rose four per cent to
11.3bn.
Chief executive John Rishton said:
We had a good year in terms of civil
aerospace and we are positive on it
looking ahead given the airlines
capacity growth and their need to
reduce the fuel bill.
The results were enhanced by the
companys acquisition of German
engine maker Tognum last year and
the 950m sale of its stake in
International Aero Engines.
Overall, a solid result in our view,
with the prospect of continued long-
term growth underpinned by the
order book, growing aftermarket
sales and contribution from
Tognum, Investec analyst Andrew
Gollan said.
Rishton said a new joint venture
with rival Pratt & Whitney to develop
the next generation of engines for the
mid-sized narrowbody market
would be officially formed this year.
Analysts forecast that 20,000 nar-
rowbody planes will be produced in
the next 20 years.
Of the 16.3bn of new orders Rolls
received in 2011, around 11bn came
from civil aerospace orders.
Rolls said its order book grew five
per cent.
Revenue at its defence business
rose, though sales at its energy and
marine units fell slightly.
Rolls positive
on 2012 as its
earnings soar
BRITISH gas producer BG Group said
it expects to grow production at
seven per cent per year to 2020, even
as weak US gas prices force it to scale
back its shale gas drilling activity by
80 per cent.
BG also gave a buoyant outlook for
its liquefied natural gas (LNG) sales
division yesterday, as it outlined a 40
per cent rise in underlying profit on
the back of higher oil and LNG prices.
BG, which is based in Reading, said
fourth-quarter earnings were
$1.48bn (934m) against a consensus
forecast of $1.11bn.
It added that appraisal work
showed its new discoveries offshore
Tanzania contained three trillion
cubic feet of resources, supporting
hopes that the East African region
could emerge as a major LNG hub,
after other companies announced
big finds in Mozambique.
Meanwhile capital expenditure
would increase from $8bn last year to
around $11bn this year, BG said.
Chief executive Sir Frank
Chapman said: In a changing and
challenging operational, economic
and political environment, I believe
these are a good set of results.
BG lifted its full year dividend 10
per cent.
BG Group eyes higher output
despite setbacks in shale gas
Tate & Lyles
growth slows
BY HARRY BANKS
ENGINEERING

RETAIL

Rolls chief executive John Rishton gave an upbeat outlook for 2012 Picture: REUTERS
BY HARRY BANKS
ENERGY

News
15 CITYA.M. 10 FEBRUARY 2012
ANALYSIS l Rolls-Royce Holding PLC
p
3Feb 6Feb 7Feb 8Feb 9Feb
790
780
770
760
750
770.00
9 Feb
ARABIAN airline Etihad yesterday
posted its first net annual profit,
crediting new partnerships and
strong cost control for the $14m gain
on revenues up 36 per cent to $4.1bn.
The eight-year-old firm said passen-
ger numbers rose 17 per cent to 8.3m
during the year, and it said further
growth was expected from its recent
deal with Air Berlin.
Etihad said it will look at further
expansion opportunities, including
Irelands struggling carrier Aer
Lingus. President James Hogan said
he hopes to now steer the firm to sus-
tainable profitability.
Etihad posts its
maiden profit
TRANSPORT

LLOYDS of London is moving off-

shore, as The Capitalist hears the insur-
ance group has entered a team in one
of the worlds most competitive yacht
races a two-day zigzag around 11
Caribbean islands that is a magnet for
seafaring captains of industry.
First to arrive in the Caribbean was
Marshall Bailey, the COO of State
Street, who flew out yesterday for a
holiday in the British Virgin Islands
before the challenging Royal Ocean
Racing Club Caribbean 600 sets off
from Antigua on 20 February.
He will be joined by fellow mem-
bers of the Lloyds Yacht Club, the
group formed in 1936 to introduce
Lloyds underwriters to offshore rac-
ing, including Edward Fane of Miller
Insurance; Howard Burnell, a senior
marine underwriter
at Amlin; and Towers
Watsons catastrophe
consultant Liz Lotz,
who will race the 23-
metre Maxi owned by
John Wilson, head of
risk consultancy
Empowered Systems.
The team is back in
the race after a one-
year absence, and
hopes to complete
the 600 nautical mile
course by the small
hours of Wednesday
morning. Sailing is a
great leveller, LYCs
head of racing
Andrew Jameson
informed The Capitalist, as he prepared
for three-metre-high swells in
extreme heat. With Austrian
investor Gerhard Andlinger; Fidelitys
president of asset management Ron
OHanley; and George David, the for-
mer chairman of United
Technologies, also among the 40
yachts competing, lets hope so.
CURTAIN UP
THE SCAFFOLDING has come down in
the auditorium, and Westminster
Council has agreed the entertain-
ment licence.
So finally the leisure group behind
the St James Theatre, Entertainment
& Media Group, can announce that
curtain up for the capitals first new
theatre for 30 years is September. We
have been one of Londons best-kept
secrets for a while and that was
deliberate, says Lucy French, director
of development on the team led by
Robert Mackintosh, brother of theatre
impresario Cameron,
and EMG director Alan
Judd.
Funded by private
investment, EMG has
taken a 75-year lease
from developer Yolanda,
and the refurbishment
of the former
Westminster Theatre on
Palace Street is 85 per
cent complete.
Artistic director
David Gilmore, who
directed the West End
version of Grease, is
scouting New York for
shows for the 312-seat
theatre, as talks are held
with operators for the
planned two bars and a brasserie.
The venue will also have a studio
space, a remarkable staircase instal-
lation and its own channel on BSkyB
so far, the backers are slightly over
the initial budget of 5m
LLOYDS WEIGHS RISK
OF OFFSHORE GAMBLE
The St James Theatre: artists view
New from City A.M., we bring you the latest
K
>

hs
THE BEST ROLES NEED
THE BEST CANDIDATES.
W W W. C I T YA M C A R E E R S . C O M
F I NA NC E B A NK I NG L E GA L I T
17 EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
The Capitalist
CITYA.M. 10 FEBRUARY 2012
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REFLECTING ON 2012 | OLYMPIC STADIUM AND TOWER
London 2012
IMAGE OF THE WEEK
The start of last years
Caribbean RORC 600
Picture: RORC/TIM WRIGHT
INVESTMENT manager Hargreaves
Lansdown said the Eurozone crisis
would drag on until Greece goes
bust as it revealed a jump in profits.
Co-founder Peter Hargreaves told
City A.M. the seeds of a recovery had
been cut off by the perpetual prob-
lem of Greece and the single currency.
Greece will never pay its debts. The
tanks will roll in Athens and then they
will have a military regime, he said.
Hargreaves was speaking as the
Bristol firm, which provides invest-
ment management products and serv-
ices to private investors in the UK, said
first-half pre-tax profits climbed 21 per
cent to 72m, stripping out the impact
of an industry levy for compensating
failed investment schemes.
Investor fears over the British econo-
my and the Eurozone took their toll,
however, and net new business fell 13
per cent to 1.16bn.
But in the final quarter, a steady
flow of clients jumping ship from
rivals boosted assets under administra-
tion at 31 December by five per cent
year-on-year to 23.4bn, with 16,000
new customers signing up. The biggest
driver of growth was the innovative
Vantage fund platform product,
Hargreaves Lansdown said.
Revenues for the half year were up
16 per cent to 112.9m.
Ian Gorham, chief executive, said:
This record result has been achieved
despite the continued backdrop of eco-
nomic uncertainty both at home and
abroad... Total UK net retail sales of
funds have fallen to levels only previ-
ously seen during the credit crunch of
2008. The UK is also courting a double-
dip recession and the average member
of the UK investing public feels poorer
today than a year ago.
Collins Stewart said the impres-
sive figures were slightly below expec-
tations but rated the stock a buy.
Shares slipped five per cent in morn-
ing trading, but settled flat at 460.3p.
WORLDWIDE revenues at law firm
DLA Piper have passed $2bn
(1.26bn) for the first time, thanks in
part to aggressive expansion plans
that recently saw it become the
worlds largest law firm by head-
count.
Global gross revenue at the firm
in 2011 was $2.25bn, while profits
per equity partner a popular way of
judging law firm performance was
$1.225m, up eight per cent from last
year.
Revenues and headcount at the
firm were boosted last year by its tie-
up with its Australian ally firm
Phillips Fox, which was completed in
May.
At the time, the firm predicted
the merger would lead to a $300m
boost to its revenues.
Excluding North and South
American operations, the firm
reported a revenue figure of 619.9m
to 30 April 2011, a rise of almost five
per cent from last years 590.8m.
Total lawyer headcount at the
firm grew to 3,745 as it added almost
400 lawyers to its partnership over
the year. Its profit margin increased
by one percentage point to 25 per
cent.
Led by managing partner Sir Nigel
Knowles, the firm has recently been
on a hiring spree, including appoint-
ing ex-Linklaters managing partner
Tony Angel a well-known City fig-
ure as its co-global chairman in
October last year.
Global revenues at law firm DLA Piper
top $2bn for first time as growth pays
PRIVATE equity investor SVG Capital
said asset values recovered some lost
ground in the final quarter of 2011, as
the company launched a 50m tender
offer to buy back shares yesterday.
Private equity firms are under pres-
sure as tough trading conditions and
volatile stock markets, against which
they benchmark their investments,
weigh on their privately-owned firms.
SVG said net asset value was 337.1p
at the end of December compared
with 319.4p at the end of the third
quarter, and up 12.8 per cent for the
year. After a large rise in the first half,
asset valuations had slumped some 15
per cent in the quarter to October.
SVG is seen as a proxy for major
European buyouts house Permira, the
owner of Hugo Boss, because its invest-
ments in Permira account for nearly
80 per cent of its value.
SVG priced a 50m tender to buy
shares at a 10 per cent discount to end
of year net asset value and plans to
return up to 170m to shareholders.
SVG set for boost from
a 50m share buyback
PRIVATE EQUITY

OCH-ZIFF Capital Management

Groups quarterly profit fell as its per-
formance income plunged last year
when wild market swings left some
of its portfolios in the red.
Calling 2011 particularly volatile,
chief executive Daniel Och said yester-
day dramatic market movements
made for the most difficult condi-
tions since 2008.
But he also said things have
improved in recent weeks and that
the companys conservative and
steady approach is paying off because
returns at its four main portfolios
were already stronger in January than
in 2011.
Last year, however, was a different
story. The New York-based company,
one of only a handful of publicly trad-
ed hedge fund firms, reported a net
loss of $137m, related largely to
expenses from the IPO. A year ago the
loss stood at $22.8m.
Excluding costs, it posted distrib-
utable earnings of $16.8m, down
from $303.1m a year ago.
Incentive income plunged 90 per
cent to $43.1m.
Och-Ziffs biggest portfolio, the OZ
Master Fund, slipped 0.5 per cent last
year while the European fund fell 4.9
per cent and the Asian fund dropped
3.8 per cent.
The average hedge fund lost five
per cent and some prominent traders
lost significantly more.
Losses rise
at Och-Ziffs
hedge funds
HEDGE FUNDS

BUYOUT group Doughty Hanson has

bolstered its presence in the private
healthcare market by agreeing to buy
Spains third largest private hospital
operator for 355m (298m).
It will take USP Hospitales, a
Madrid-based hospital chain, off the
hands of creditors Barclays and Royal
Bank of Scotland (RBS). The firms bid
represents a nine times multiple to
USPs forecast earnings before inter-
est, tax, depreciation and amortisa-
tion for 2012.
Barclays and taxpayer-backed RBS
control close to 70 per cent of USP
since its former private equity owner
Cinven handed its shares over to the
two banks as part of a complex debt
restructuring deal over two years ago.
The deal is Doughtys first since co-
founder Nigel Doughty was found
dead at his home in Lincolnshire at
the weekend.
Francisco Gutirrez Churtichaga,
senior principal for Doughty Hanson,
said demand for private healthcare is
growing in Spain.
[We] also believe that the company
offers a unique platform from which
to create a larger hospital group pro-
viding the right combination of tech-
nology and premises to deliver the
best possible care to the private
patient.
USP has a strong presence in
Barcelona, Madrid and Seville and
operates 12 hospitals, one specialist
clinic and 22 auxiliary clinics, with a
total of more than 1,200 beds.
The deal comes as Spains much-
valued public healthcare system is
struggling as it becomes the latest vic-
tim of the Eurozone debt crisis. Some
medical suppliers have not been paid
for up to two years.
Doughty sold the Priory rehabilita-
tion group in a deal valued at 875m
in July 2005.
Doughty in 355m Spain deal
BY PETER EDWARDS
PRIVATE EQUITY

Greek drama
fails to hurt
Hargreaves
BY PETER EDWARDS
ASSET MANAGEMENT

BY ELIZABETH FOURNIER
LEGAL SERVICES

News
18 CITYA.M. 10 FEBRUARY 2012
The earthquake in Christchurch, New Zealand has hit Catlins profits Picture: GETTY
ANALYSIS l Hargreaves Lansdown PLC
p
3Feb 6Feb 7Feb 8Feb 9Feb
465
450
455
460
435
440
445
460.30
9 Feb
RBS Corporate Finances David
Smith has been advising his parent
bank on the sale of USP to Doughty
Hanson.
Smith cemented his reputation
last year while acting as defence
adviser for engineering firm Charter
International as it successfully
fought off an unsolicited takeover
approach from Melrose.
He later recommended that
Charter accept a 1.5bn competing
bid from Colfax.
Smith specialises in takeovers in
the industrials and healthcare sec-
tor and has 18 years experience
gained at Morgan Grenfell,
Citigroup and Dresdner Kleinwort.
He has been assisted by a team
that includes Paul Igoe, who worked
on both RBS 422m disposal of
918 pubs to Heineken at the end of
last year and Sahaviriya Steel
Industries $469m acquisition of
Teesside Cast Products in March
2011.
Doughty Hanson was advised by
Rothschild bankers Borja Arteaga
and Alberto Fernndez, with both of
them working on the deal from the
firms Madrid office.
MEET THE ADVISERS
DAVID SMITH
RBS CORPORATE
FINANCE
Catlin trumps forecasts
after a disastrous year
PROFITS at insurer Catlin plummeted
by 82 per cent in 2011 after it was
forced to absorb nearly $1bn in catas-
trophe-related claims.
The firm, operator of the biggest
syndicate at Lloyds of London,
announced a year-end profit of $71m,
down from $406m in 2010.
This still beat analysts expecta-
tions, reflecting the strength of
Catlins reinsurance protection pro-
gramme, which reduced the final
impact of $961m in catastrophe
claims to just $678m.
In a year of substantial industry
losses, we feel this is a commendable
result, Oriel Securities analyst
Marcus Barnard wrote in a note.
Catlin said it had raised prices by
five per cent on average in January as
customers renewed their policies,
pointing to better revenue for 2012.
Shares closed up 5.3 per cent at
449p, one of the biggest risers in the
FTSE 250.
INSURANCE

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UK MANUFACTURING output jumped
higher than predicted in December,
data from the Office for National
Statistics (ONS) showed yesterday,
leading some economists to suggest
the economy may be back on the
track to recovery.
The production industries as a
whole, which includes manufactur-
ing, mining and energy, registered a
small rise in output in the month and
a decline on the year.
The ONS index of manufacturing
rose one per cent on the month and
0.8 per cent compared with December
2010, with total output for 2011 com-
ing in 2.1 per cent higher than 2010.
Production industries overall
expanded by 0.5 per cent from
November to December but declined
3.3 per cent compared with the same
month of 2010, and 2011s total out-
put was 1.3 per cent lower than 2010s.
The news that manufacturing out-
put soared in December lends credi-
bility to stronger survey readings
recently, especially the purchasing
managers indices, said Investecs
Philip Shaw.
As things stand there seems to be a
good chance that the economy will
expand again in the first quarter of
this year following a 0.2 per cent con-
traction in the fourth quarter. This
means we would need to upgrade our
2012 GDP forecast which currently
stands at 0.4 per cent.
Meanwhile, the National Institute
for Economic and Social Research
(NIESR) estimated that the economy
contracted 0.2 per cent in the three
months to January, continuing the
decline in GDP seen at the end of 2011.
These estimates suggest output
has been flat since October 2011,
NIESRs report said.
We expect the UK economy to
remain flat over the course of this
year before recovery takes hold in
2013.
THE NUMBER of Americans filing
new applications for unemployment
benefits unexpectedly fell last week,
suggesting recent gains in employ-
ment are being sustained.
Initial claims for state unemploy-
ment benefits dropped 15,000 to
358,000, the Labor Department said
yesterday.
A four-week average of new filings,
which provides a better view of the
trend, hit its lowest level since April
2008.
The decline in claims, which defied
economists forecasts for a rise to
370,000, pointed to building strength
in the labour market and raised the
odds of another solid increase in
employment this month.
It not only validates the gains that
we had last month ... but it shows
that we are likely to add to those
gains in a meaningful way in
February, said Millan Mulraine, sen-
ior macro strategist at TD Securities.
The economy added 243,000 jobs in
January and the unemployment rate
dropped to a three-year low of 8.3 per
cent.
Meanwhile inventories at US
wholesalers grew one per cent in
December, suggesting the economy
received a bigger boost than expected
in the fourth quarter from companies
restocking their shelves.
The figure, reported yesterday by
the Commerce Department, beat ana-
lysts expectations of a 0.4 per cent
gain.
Jobless claims slide in the US as the
economic outlook starts to brighten
MANY school leavers lack basic skills,
and one fifth of UK pupils drop out of
the education system before finishing
their A-levels, a report from the
Organisation for Economic
Cooperation and Development
(OECD) revealed yesterday.
Dropout rates range from two per
cent in South Korea to 58 per cent in
Turkey, with the UK in line with the
average of the 34 countries measured
at 18 per cent.
Successful secondary education
completion gives individuals better
employment and healthier lifestyle
prospects resulting in greater contri-
butions to public budgets and invest-
ment, the report argued.
More educated people contribute
to more democratic societies and sus-
tainable economies, and are less
dependent on public aid and less vul-
nerable to economic downturns.
As a result the think tank wants
governments to increase spending on
disadvantaged schools and pupils.
OECD calls to lift spending
on disadvantaged schools
WORLD ECONOMY

IMPORTS fell sharply in December

and exports expanded slightly, taking
the UKs trade deficit to its lowest
level since 2003, figures from the
Office for National Statistics (ONS)
showed yesterday.
The deficit in goods and services
fell to 1.1bn for the month, com-
pared with 2.8bn in November.
In goods, the deficit fell from
8.9bn to 7.1bn, and the services sur-
plus declined slightly from 6.1bn in
November to an estimated 6bn in
December.
Exports of oil to countries includ-
ing France were largely responsible
for the rise, while imports of chemi-
cals fell 0.6bn and oil and precious
stones fell 0.4bn.
Although the deterioration in
growth prospects in the Eurozone at
the end of 2011 has been widely
blamed for the weakening in the UKs
own prospects, exports to the euro
area held up relatively well, said
Barclays Capitals Chris Crowe.
In fact, the Eurozone has more
reasons to worry about the UKs weak
growth prospects harming its recov-
ery, as the UKs imports from the
Eurozone declined by 4.2 per cent on
the month, or 0.7 per cent quarter on
quarter.
The goods deficit with non-EU
countries fell from 5bn in November
to 3.7bn in December, compared
with 5.7bn in December 2010.
UK trade deficit plummets to nine-year
low as imports take a sharp tumble
UK ECONOMY

HOUSE PRICES are set to fall in 2012

as unemployment rises and house-
hold income stays depressed, accord-
ing to yesterdays forecasts from the
Council of Mortgage Lenders (CML)
and todays LSL house price index
and e.surv mortgage monitor.
The weak economic outlook is also
set to push up repossessions as more
borrowers fail to keep up with mort-
gage repayments.
CML forecasts predict a rise in
repossessions from 36,200 in 2011 to
45,000 in 2012 and a jump in the
number of mortgages in arrears of
2.5 per cent or more from 159,400
last year to 180,000 by the end of this
year.
Worsening unemployment and
continuing pressures on the cost of
living seem likely to result in some
further deterioration in the position
of households in 2012, the Council
reported.
Weak demand has also pushed
down prices a further 0.2 per cent in
January, LSL Property Services index
showed today, taking the annual
decline to 1.4 per cent.
London prices rose three per cent
on the year, buoyed by foreign buy-
ers seeking a safe location in which
to invest.
Transaction volumes rose 5.1 per
cent year on year, the index showed,
as mortgage finance increased in
availability.
According to the e.surv mortgage
monitor, also out today, 58,610 loans
were approved for house purchases
in January the highest level since
December 2009 and a 29 per cent
increase on the year.
The jump was driven by larger
numbers of low-deposit buyers being
offered mortgages, helping first-time
buyers get onto the property ladder,
the surveyors said.
Repossessions forecast to rise
BY TIM WALLACE
HOUSING

Factory jump
raises chance
of a recovery
BY TIM WALLACE
UK ECONOMY

BY HARRY BANKS
US ECONOMY

News
20 CITYA.M. 10 FEBRUARY 2012
NEWS | IN BRIEF
Chinese prices hit easing hopes
Chinas annual inflation spiked to a con-
sensus-busting 4.5 per cent in January as
spending jumped during the Lunar New
Year holiday season, breaking a five-
month softening trend and forcing a
market rethink of policy easing expecta-
tions. The size of the seasonal distortion
makes the January data particularly hard
to read, but economists say it is likely to
have squeezed out any remaining expec-
tation of a near-term cut to bank reserve
ratio requirements, a move confidently
predicted in the run-up to Lunar New
Year but which failed to materialise.
Inflation rebounded from a 15-month
low of 4.1 per cent in December. The con-
sensus inflation forecast, also 4.1 per
cent, was blown away by a 10.5 per cent
surge over a year earlier in food prices,
which make up roughly a third of China's
consumer price index.
Japans consumer confidence up
Japanese consumer confidence improved
in January from the previous month, a
Cabinet Office survey showed yesterday,
but uncertainty over Europes debt prob-
lem and worries about the financial mar-
kets may hinder steady recovery. The
surveys sentiment index for general
households, which includes views on
incomes and jobs, was 40 in January, up
from 38.9 in December. The Cabinet
Office raised its assessment of consumer
confidence, saying it showed signs of
picking up. Previously, it had said confi-
dence was almost flat. The readings are
firmly below the 50 level, which suggests
pessimism.
China
32m
US
49m
Germany
83m
Spain
1m
Ireland
296m
France
317m
Italy
7m
Netherlands
38m
Belgium/
Luxembourg
231m
THE UKS TRADE DEFICIT FELL AT THE END OF 2011
Change in trade balance
from November to
December, with selected
major trading partners
Source: ONS
EUROPE US ASIA
ANALYSIS l Manufacturing shows signs
of recovery
%change
year on year
Oct 2009 Feb Jun2010 Feb Jun2011
8.0
2.0
4.0
6.0
0.0
-2.0
-4.0
-6.0
-8.0
-10.0
Production industries
Manufacturing
Deficit narrowed /
surplus increased
Deficit widened /
surplus narrowed
Genpact
The business process and technology
management company has appointed
Hugh Morris as vice president, busi-
ness development of Genpacts UK
banking and financial services prac-
tice. Morris joins from a role at a busi-
ness process outsourcing firm
servicing leading UK law firms; prior
to this, he held a number of senior
positions at Accenture, including part-
ner and global managing partner.
Bluefin Corporate Consulting
The employee benefits and technology
consultancy has promoted Stuart
Reid from client director to head of
employer duties.
Rowan Dartington
The Bristol-based stockbroker has
appointed Trevor Cheal as business
development director to support
Signature, the arm of Rowan Dartington
dedicated to supporting investment pro-
fessionals and their clients. Cheal previ-
ously held senior positions at Prudential
and Legal & General.
Coutts
The private bank has strengthened its
Middle East team with three new hires.
Arjun Mittal joins as regional head of
Coutts non-resident Indian business,
Akram Khattab joins as an executive
director, relationship management, and
Ali-Reza Vahabzadeh joins as a vice
president, relationship management.
Mittal and Khattab join from Bank
Sarasin Alpin and Vahabzadeh moves
from Citi Private Bank.
Stanford
The legal and compliance search firm
has appointed Rowan Morrison as a
director. Morrison joined Stanford in
2008 to lead the companys Hong
Kong operations.
Dechert
Duncan Wiggetts has joined the firm as
a partner in its white collar and securi-
ties litigation practice in London. Prior
to joining Dechert, Wiggetts was a part-
ner in DLA Pipers London office.
Paul Hastings
The law firm has hired a team of cor-
porate partners to its Frankfurt office
from Baker & McKenzie. The new
lawyers are Regina Engelstaedter, Jan
Gernoth and Ali Sahin.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
Modest gains for
Wall Street stocks
U
S stocks rose modestly for a
third straight day yesterday
after Greece reached a deal to
secure a financial bailout, but
investors were cautious after weeks
of gains.
Tech shares, led by Apple, gave a
lift to the Nasdaq index and were the
sessions strongest sector. Skepticism
that Greece would follow through on
promised austerity measures kept
investors hesitant to boost stocks fur-
ther.
The markets steady march higher
also left investors reluctant to buy
aggressively without a significant
catalyst. Well over 75 per cent of S&P
500 stocks are trading above their 26-
week moving average, according to
Thomson Reuters data. The index has
finished higher on six of the last
seven trading days.
The Dow Jones industrial average
was up 6.51 points, or 0.05 per cent,
at 12,890.46. The Standard & Poors
500 Index was up 1.99 points, or 0.15
per cent, at 1,351.95. The Nasdaq
Composite Index was up 11.37 points,
or 0.39 per cent, at 2,927.23.
Providing support to the market
was a report showing jobless claims
fell last week, underscoring improve-
ment in the labor market.
And Apples stock hit an all-time
high. Brokerage Canaccord Genuity
said its checks indicated very strong
iPhone 4S sales and increased its
price target to $665. Website
AllThingsD said Apple would intro-
duce its latest iPad tablet version
next month.
Shares of Apple surged 3.5 per cent
to $493.17, hitting an all-time high of
$496.75 earlier. The S&P information
technology sector rose one per cent
as the days best-performing group.
But Cisco Systems limited gains by
the tech sector as the network equip-
ment makers forecast failed to
impress investors. Shares fell 2.1 per
cent to $20.
PepsiCo fell 3.7 per cent to $64.27
after the beverage maker forecast
lower-than-expected 2012 earnings
and said it would cut thousands of
jobs.
Groupon slumped 14 per cent to
$21.17. The daily deal website posted
an unexpected loss in the first quar-
terly report since it went public.
Diamond Foods tumbled 37 per
cent to $23.13 after the company
removed its top management and
said it would restate results due to
improper accounting of payments to
walnut growers.
Slightly more stocks rose than fell
on the New York Stock Exchange
while on the Nasdaq, 53 per cent of
stocks ended lower.
B
RITAINS top share index
closed modestly higher yester-
day, supported by oil and bank-
ing stocks after BG Group
reported strong results and Greece
moved closer to securing a bailout
package that will avert a chaotic
default.
The FTSE 100 closed 19.54 points or
0.3 per cent higher at 5,895.47 after
hitting a six-month intraday high of
5,916.31 in the afternoon, when
Greek political leaders agreed on
reforms required to receive a new res-
cue package and the European
Central Bank opened the door to
helping Athens.
Banking stocks extended gains
after the announcements as the
prospect of a disorderly default by
Greece receded.
But the sector pulled back in late
trade and the FTSE fell back into the
tight range seen this week, with vol-
ume just slightly above the anaemic
average of the last 90 days.
As it had such a great run last
week, youre seeing some rotation,
some people taking profit, others
eager to get in because they saw the
break of the trendline, said Anders
Sderberg, chief technical analyst at
SEB Merchant Banking.
The market will try to be higher
but it will fail and fall back to check
and probably validate the trendline
that we saw last week.
Traders said the price consolida-
tion and thin trading volume sig-
nalled investors were reluctant to
build on last weeks rally with so
much uncertainty still surrounding
the Eurozones debt crisis and
Europes growth prospects.
The market is doing well and
were officially in bull market territo-
ry but I think that at this level it
needs a little bit more volume, said
Andy Ash, head of sales at
Monument Securities.
He added a number of institutions
and hedge funds were preferring
high-yielding credit to equities and
argued it would take a solid second
long-term refinancing operation
(LTRO) by the ECB to provide banks
with more money and reassuring
economic data out of Europe later
this month to convince them to go
back into shares.
His views echoed those of David
Coombs, head of multi asset invest-
ment at Rathbones, who used part of
the cash hoarded in 2011 to buy cred-
it. The fund manager said he
remained sanguine on equities
although the recent rally had moder-
ated his bullish stance.
He favoured oil stocks, which he
saw as poised to benefit from a high
crude price environment, under-
pinned by encouraging economic
growth prospects in emerging mar-
kets.
British oil and gas giant BG Group
was among the top risers on the FTSE
yesterday after posting a forecast-
beating jump in fourth-quarter prof-
its and saying it expects strong
growth in production and earnings.
Curbing gains on the index were
miners, which fell 0.3 per cent after
Rio Tinto reported a second-half net
loss and unveiled a gloomy medium-
term outlook for its struggling alu-
minium business.
Tate & Lyle, the maker of food
ingredients, was bottom of the blue-
chip table, falling 3.2 per cent after
saying it expects net debt for 2012 to
be higher than last year as a result of
higher corn prices and exchange
rates.
Among other fallers after results
and trading updates, engine maker
Rolls-Royce dropped 1.9 per cent and
British Land fell 2.2 per cent.
Signs of a solution in Greece
send the FTSE edging higher
THELONDON
REPORT
THENEW YORK
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Yoox SpA
10.0
9.50
9.00
8.50
8.00
7.50
Dec Jan Feb

10.13
9 Feb
YOOX
Goldman Sachs maintains its conviction buy rating on the Italian online
fashion retailer with a target price of 16.80, after it reported strong full-
year 2011 sales, implying fourth-quarter revenues nine per cent ahead of
company consensus. The broker believes Yoox is well-positioned within two
growth trends the expansion of internet retail and the growth in sales of
luxury goods.
ANALYSIS l Mcbride PLC
130
125
120
115
110
Dec Jan Feb
pp
124.75
9 Feb
MCBRIDE
Panmure Gordon upgrades the own-brand cleaning products company from
hold to buy and increases its target price from 130p to 150p, after interim
results from the group in line with expectations. The broker says all geogra-
phies show good underlying revenue growth, with the firms cost recovery
programme starting to be reflected in improving margins. Panmure says it is
more confident that McBride can achieve its forecasts for the next two years.
ANALYSIS l IG Group Holdings PLC
500
480
460
440
420
Dec Jan Feb
p
471.80
9 Feb
IG GROUP
Numis downgrades the trading group from buy to hold and its target
price falls from 616p to 536p, in line with its reduced forecasts for the year.
The broker sees pre-tax profit down two per cent this year, and seven per
cent next year. Though IG continues to offer a great medium-term growth
story the broker thinks the market will react negatively to slowing growth,
and says less volatile markets could weigh on the shares.
p
14Nov 2Dec 22Dec 16Jan 3Feb
6,000
5,200
5,000
5,400
5,600
5,800
ANALYSIS l FTSE
5,895.47
9 Feb
ICAEW
Arthur Bailey has been elected as the next vice-
president of the Institute of Chartered
Accountants in England and Wales (ICAEW).
Bailey, who will take office on 13 June, has
served on ICAEWs council for 14 years, includ-
ing three years as chairman of the audit com-
mittee, and is a member of the board. He is a
consultant with both Begbies Traynor Group
and Kingston Smith. He will support Mark
Spofforth, president for 2012/2013, and
deputy president Martyn Jones.
News
21 CITYA.M. 10 FEBRUARY 2012
W
HEN Sharon Shoesmith, the former
director of Haringey Childrens
Services, became the scapegoat for
the death of Peter Connelly or Baby
P, almost everyone joined the witch hunt. The
media went for her with a viciousness that
knew no bounds while Ed Balls, then Childrens
Secretary, took the unprecedented step of order-
ing her dismissal (unfairly, according to the
Supreme Court) with the full support of David
Cameron. The rank-and-file social workers who
were handling Baby Ps case were similarly vili-
fied.
It is little wonder, then, that the number of
children being taken into care hit a new high in
January, and has been spiralling out of control
ever since the death of Connelly became public
in 2008. Social workers and local authorities are
so scared that the next Baby P will happen on
their watch that they have lowered the bar for
recommending a child be taken into care. The
law of unintended consequences strikes again.
No one denies that children who are being
abused or seriously neglected should be forcibly
taken away from their families, but it is simply
staggering that 8,403 children went into care
between April and January. The reason this is so
depressing is because very few of these children
will end up being adopted. Around three quar-
ters end up with foster parents, although there
are around 10,000 fewer places than is needed,
while twenty-five per cent will go into residen-
tial childrens homes. There they will spend
their formative years with other deeply dam-
aged children. A depressing number will end
up in the criminal justice system or suffering
from alcohol and drug abuse.
Some years ago, I knew a social worker who
ended up taking a newly orphaned child home
with her because she could not find a foster
place and there was no available family. Such an
act of kindness would be unthinkable today (she
would probably be sacked if her superiors found
out), but it speaks volumes about how reluctant
she was to put the child in a residential home.
I think Sharon Shoesmith should have
resigned voluntarily following the death of
Connelly. Not because she was directly responsi-
ble, but because there were serious failings in
her department. But to blame her for the
tragedy is ridiculous, not least because it lets
the real architects of the system that failed
Connelly off the hook.
To locate the systemic failures to blame for
the death of Connelly, we need to return to
another tragedy: the death of Victoria Climbi
in 2000. In the immediate aftermath, the
Labour government set about reforming the
child protection system following a report by
Lord Laming, the crossbench peer. The most fun-
damental change was the merging of local edu-
cation and social services into a single
department, the theory being that better com-
munication between social workers and teach-
ers could have prevented Climbis death. The
jobs of Director of Education and Director of
Social Services were made redundant and
replaced by a new Director of Childrens
Services. The change was mirrored in Whitehall,
with Ed Balls becoming the inaugural Secretary
of State for Children, Schools and Families.
In 2004, Shoesmith, like most Directors of
Education, was asked to become Director of
Childrens services, a job with more money,
more staff and more power. She jumped at the
chance. She had a strong track record when it
came to improving schools, first in the private
sector at outsourcing giant Capita and then at
Haringey. But she had no experience whatsoev-
er of child protection or social services.
These changes happened under the bright
slogan Every Child Matters, which helps
explain how flawed they were. In education,
every child does matter, but in child protection
its is only a very small minority those at risk
of abuse or neglect who really count. Instead
of focusing on this small but vulnerable group,
the new Childrens Services departments spent
time and money on a raft of initiatives that
helped every child.
Schools were given cash to run breakfast and
homework clubs that were open to all pupils
and which especially helped those with work-
ing parents. Over 200m was spent providing
free activities for kids during the school holi-
days. Reluctant teachers were asked to become
the front-line in tackling child abuse while
social workers were sidelined. The resources
once spent on helping the few now went to the
many, which suited the Labour government
down to the ground. Remember that Tony Blair
sailed to victory in 1997 promising three priori-
ties: education, education, education.
Helping the most vulnerable children isnt real-
ly a vote winner, but free child care is.
The upshot is this. At the moment and in
the years to come there will be children who
are taken from their, admittedly troubled, fam-
ilies and placed into even worse circumstances.
In some cases, the consequences will be grave.
Some victims will one day speak out about
their trauma. Tragically, others wont get the
chance.
David Crow is City A.M.s managing editor.
22
The Forum
CITYA.M. 10 FEBRUARY 2012
It is simply staggering that
8,403 children went into
care in the last 10 months
Too many children are being
taken into care: the Baby P
witch hunters are to blame
cityam.com/forum
DAVID CROW
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.
23
Its folly to claim
that women all
bring the same
skills to business
We skirt around
the issues with
quota proposals
S
PEAKING at a summit in Sweden yester-
day, the Prime Minister revisited the
issue of women in business, saying that
he wanted to accelerate the increase
in women on the boards of top UK firms.
Although he said he would not rule out
quotas (though Downing Street subsequently
did), David Cameron said he would prefer to
boost the number of women directors with-
out resorting to fixed allocations. In Sweden,
women hold a quarter of boardroom posts. In
Norway, where quotas came into force in
2008, it is 40 per cent compared with approxi-
mately 15 per cent of female directors at FTSE
100 companies here in the UK.
The argument that companies and coun-
tries run better if you have men and women
working together at the top makes sense. The
benefit to society of bringing more women
into senior roles is not really in question; but
underlying that logic seems to be the sugges-
tion that more women in the boardroom
would be a panacea for all business evils.
Business isnt that simple or that clear cut.
The question I continue to ask myself is
whether this debate is really important or
something of a smokescreen?
After all, when it comes to business start-
ups and we are consistently told that the
economic recovery will be led by small busi-
ness government statistics show that more
women than ever are opting to start their
own businesses. According to the Labour
Force Survey, a quarter of the UKs 3.2m self-
employed workers are women and 30 per cent
of business owners are women. Female entre-
preneurs account for approximately 7 per
cent of the UKs working population, double
the figure in 1979.
Having set up and steered a customer
insight agency through its formative years
with my two female business partners, Marie
Sutton and Deborah Sleep, I believe that more
importance should be placed on the quality of
the ideas that we are generating in our econ-
omy and how we follow through on them to
develop successful businesses, regardless of
whether you are a man or a woman.
I dont believe there are particular female
characteristics that are likely to make you
more successful in business. Tenacity, flexibil-
ity and the ability to change in particular cir-
cumstances are what matters. Some might
say that these are female characteristics, but I
prefer to think of them as entrepreneurial
ones first and foremost. Our company runs
well because we are three people who all have
different views and, because we all have to
agree, we have become used to finding com-
promise for the overall good. Perhaps women
are generally better at compromising; we tend
not to stick with a point of view when its
clearly not right just so that we dont lose
face. But to say that all women bring the same
thing to the business is absurd: weve always
had different views and we like it that way.
The bottom line, of course, is that, male or
female, to keep business thriving you are only
as good as your last project. That means main-
taining a 100 per cent effort for all current
clients, staying on the pulse of new thinking
in the industry and devising and executing
better ways to deliver projects. Its not about
counting skirts around the boardroom table.
Lyndsay Peck is the director of Engage Research.
Greek gamblers
Despite yesterdays progress, with
Greeces long list of missed dead-
lines, and its opposition to keeping
spending cuts promises, do Greek
officials feel Eurozone officials will
not allow the country to default?
Greece will get the chance to put
that theory to the test on 20
March, when 14.5bn (12.13bn)
in bond payments will come due.
Without funding help, Greece will
be forced into a disorderly default.
Greece seems to have bet that the
Eurozone will not let this happen.
Pressure has mounted for Greece
to address its economic short-
comings, including an inability to
rein in tax evasion. But according
to Nikos Lekkas, head of planning
for Greeces tax recovery system,
the annual tax loss is roughly
45bn a year. This is nearly a
third of the current rescue plan.
Greece also promised 50bn from
selling government assets over
four years. So far, 1.7bn has been
raised and the sale of surplus
buildings and public stakes in
large companies appears to have
fallen by the wayside.
From its behaviour, Greece seems
to think it wont be allowed to
default. The uncertainty a default
would cause not to mention the
potential chain reaction in other
indebted countries like Spain and
Portugal gives Greece a strong
hand. It seems fully aware of this
reality and has been rolling the
dice one more time.
Scott Boyd, currency strategist,
OANDA
RAPID RESPONSES
LYNDSAY PECK
BY MARC SIDWELL
CITYA.M. 10 FEBRUARY 2012
The Forum
W
HAT would
C h a r l e s
Dickens do? If
he were alive
today, support everyones
favourite cause it seems.
In the authors bicenten-
nial year, everyone wants
a piece. Schools minister
Nick Gibb announced this week, referring to shocking
levels of student illiteracy, that there are shadows of
Dickenss world in our own and called for more ambi-
tion in state schools. Actor and recent Dickens biogra-
pher Simon Callow said that Dickens should be
remembered as a journalist and that in todays London
he would have been up with the anti-capitalists at St.
Pauls and exposing scandal wherever it lay.
Yet while Dickenss career included journalistic
achievements, his novels were nothing of the kind.
Nicholas Nickleby and Hard Times are not George
Orwells Homage to Catalonia or Daniel Defoes
Journal of the Plague Year. Dickens wrote sentimental
melodrama, not unvarnished reportage. Scrooge devel-
oped from the misreading of an Edinburgh gravestone.
Ebenezer Lennox Scroggies inscription called him a
meal man, referring to his profession. Dickens read
mean, conjuring a reputation so warped that it was
set on his tombstone. In reality, Scroggie was born in
Kirkcaldy, his mother was Adam Smiths niece, and he
was notorious not for thinking of nothing but business,
but for goosing the Countess of Mansfield in the
Church of Scotlands General Assembly.
Dickenss lack of documentary realism is clearest in
his description of schools. Dotheboys Hall shows the
duty to act in loco parentis mutated into an utter dere-
liction of care. Yet as the social historian James
Bartholomew has written, people in Yorkshire were
so outraged by his calumny against the county that in
the second preface, Dickens withdrew and said that he
understood that such places no longer existed. It is
pretty clear that no such place ever existed at all.
Despite what Gibb may think about Dickensian
schools, the nineteenth century saw great achieve-
ments in education well before the first state elemen-
tary schools of the 1870s. By 1840, 99 per cent of
fresh naval recruits from school could read. In 2010,
an international Pisa survey found that 20 per cent of
15-year-old Britons were functionally illiterate.
Dickens the journalist would have something to say
about that scandal, and Dickens the novelist might be
more than a little embarrassed that his campaigning
exaggerations of the late 1830s allow politicians to
gloss over dire educational standards today.
When we claim Dickens for any cause, we forget his
complexity. Dickens could be hard on business but he
was also an innovative and hard-dealing businessman
within the emerging industry of mass publication. He
believed in philanthropy based on the kindness in
human nature, but not in forced appropriation of
wealth it is for Scrooge to make himself a better
man, not the state, and it was with the help of a bank-
ing heiress, Angela Burdett Coutts, that Dickens built
Urania Cottage as a refuge for women. And Dickens
was a fierce critic of state institutions that failed:
Oliver Twist is no whitewash of government welfare.
Yet with no more money left, the best advice
Dickens can give us today, politicians and citizens alike,
are the words of Wilkins Micawber: Annual income
twenty pounds, annual expenditure nineteen nineteen
and six, result happiness. Annual income twenty
pounds, annual expenditure twenty pounds ought and
six, result misery. We cant say he didnt warn us.
Marc Sidwell is business features editor for
City A.M.
Dont allow politicians
to read Dickens for us
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
*Ofsted. ** Subject to eligibility 105,000 is the price for a 30%share of
the full market value of 350,000. Details correct at time of going to print.
February 2012. ***Texts are subject to standard network charges.
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Living| Interiors
24 CITYA.M. 10 FEBRUARY 2012
PINK HEART
PAPER DOILIES
3.95
www.dotcomgiftshop.com
Incredibly simple and
cheap way to make
your table setting on
Tuesday Valentines-
ready: at under 4 for
a set of 72, you can
scatter them generous-
ly, then forget about
them.
LOVESEAT BY LUCIAN R
ERCOLANI AT SCP
615
www.scp.co.uk
Elm with beech legs, in natural or black fin-
ish. Works as a standalone or at a table.
LOVE TATTOO TAPESTRY
KIT, EMILY PEACOCK
85
www.liberty.com
Add a home-made cushion to the sofa:
set comes with materials and intricate
"Love" tattoo motif.
ROSES COLOURED MINI
CANDLE, DIPTYQUE
25
www.spacenk.co.uk
Gorgeous rose scent from iconic
Paris brand.
THE BIRDCAGE TABLE, SQUINT
LIMITED
1,200
www.squintlimited.com
Mahogany glass topped wine table in single
colours or patch work, with woven silks, vel-
vets and printed and woven cottons.
STONEWARE
DEEP-HEART
DISH, LE
CREUSET
42
www.lecreuset.co.uk
Add some real heart to
your Valentines dinner
and future stews and
casseroles with this
adorable bowl.
STORAGE
COFFEE TABLE
BY DORIG
149
www.made.com
Elegant lines and rich,
dark wood are deli-
ciously offset by the
strident red of the top.
A stylish way to add
the colour of love to
your home.
LOVE ME DO VINTAGE CARDS
FRAME, GRAHAM & GREEN
65
www.grahamandgreen.co.uk
Contains individual cards sourced from a 1930s
spelling game, mounted in a black wood box frame.
Valentines Day is a good
excuse to add some very
fetching pieces to your
collection, says Zoe Strimpel
Give your home a dash of V-Day love
800 MILLION PEOPLE
LIKE YOUR PROPERTY
Join one of the frst estate agents to ofer a
property search function within Facebook
Tames Heights SE1
595,000 leasehold
A top foor modern duplex apartment located within the heart of Shad Tames.
Tis 2 bedroom, 2 bathroom apartment has a balcony, underground parking & is
situated within close proximity to both London Bridge & Bermondsey stations.
Neckinger Mills, Abbey Street se1
1,350 per week
A rare opportunity to rent this unique & spacious warehouse conversion. With over
2,700 sq ft of lateral accommodation this property boasts many original features such
as exposed brickwork, dual aspect windows, high ceilings & wood foors.
City Tower E14
499,950 freehold
A spacious 2 bedroom, south facing apartment with a sizeable terrace & large open plan
reception room. Located on the 10th foor of this sought after City Tower development
close to Crossharbour DLR station.
Ionian Building E14
975 per week
A stunning 3 bedroom, 3 bathroom Penthouse apartment in the heart of Limehouse.
Te property boasts spectacular views of the River, Canary Wharf & the City from the
large wrap around terrace & the foor to ceiling windows.
Tower Bridge
020 7357 7999
sales.towerbridge@chestertonhumberts.com
Tower Bridge
020 7357 6911
lettings.towerbridge@chestertonhumberts.com
Canary Wharf & Docklands
020 7510 8300
sales.canarywharf@chestertonhumberts.com
Canary Wharf & Docklands
020 7510 8310
lettings.canarywharf@chestertonhumberts.com
chestertonhumberts.com
- 90% of our Landlords return to us
- Over 75 years of experience within our team
- In-house full rental, management and
refurbishment services
- International database of clients and agent network
- We tailor our service to your individual needs
www.aylesford.com | rentals@aylesford.com | +44(0)207 351 2383
Victoria Road | W8 | 6 Bedrooms | 9000 per week
Bramerton Street | SW3 | 4 Bedrooms | 2,300 per week Cadogan Square | SW1 | 3 Bedrooms | 2,350 per week
Property | Focus On
27 CITYA.M. 10 FEBRUARY 2012
live london live central park
*based on 1 bed apartment. Shared ownership available on selected plots. Prices correct at Jan 2012
From179,950* Estimated rental yield 6%.
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020 7089 3917 centralparkliving.co.uk TEXT CENTRAL26 to 60123
Striking 1, 2 & 3 bed apartments
ideally located for getting into the city
SE10
WOODHALL
Price: 7m
A six bedroom fully restored period house with extra staff accommo-
dation. The reception hall is finished with marble flooring and features
an original oak staircase.
Contact Savills Weybridge on 01932 838 000 or visit savills.co.uk
TORRINGTON MEWS
Price: 695,000
Torrington Mews is a brand new development of three and four bedroom
townhouses. One four bedroom home now remains, which features a sep-
arate kitchen/breakfast area, utility room, sitting room, family bathroom,
ensuite facilities to the master bedroom and second bedroom, two addi-
tional bedrooms, landscaped garden and integral garage. Contact Banner
Homes on 01932 267 510 or visit www.torrington-mews.co.uk
FOCUS ON: WEYBRIDGE, SURREY
SUMMER
HAZE
Price: 6m
Once home to the
former Beatles
drummer Ringo
Starr, the six bed-
room property has
been recently
refurbished. It
includes a pool and
large gardens.
Contact Savills
Weybridge on
01932 838 000 or
visit savills.co.uk
FLOCKTON
HOUSE
Price: 485,000
A two bedroom
apartment situat-
ed on the first
floor of a gated
development,
with a balcony
overlooking the
canal.
Contact Savills
Weybridge on
01932 838 000
or visit
savills.co.uk
FIR TREE
LODGE
Price: 3.75m
Spacious four
bedroom proper-
ty with an out-
door pool and
outbuildings that
have been sub-
stantially refur-
bished.
Contact Savills
Weybridge on
01932 838 000
or visit
savills.co.uk
Commuting: Weybridge is a popular
commuter town with Walton on
Thames station providing an effortless
commute to London Waterloo in just 30
minutes. For journeys by car, the M25
and M3 motorways are within easy
reach plus London Heathrow and
London Gatwick are nearby.
Education: Nearby schools include Cleves
Junior School, St Georges College catering
for children aged from 3-18, or the excel-
lent Oatlands Primary School. There are
also two international schools nearby the
American Community School and the
Reeds School which is linked with the
Dutch Rijnlands Lyceum.
EXPERT VIEW | AREA INSIGHT
IN THE KNOW | PRICES Source: Land Registry
Detached Terraced Flats
Surrey 532,307 240,427 186,892
London 779,512 463,220 187,621
REPOSSESSIONS TO RISE
British mortgage repossessions hit
their lowest since 2007 last year
but are expected to rise in 2012 due
to increasing unemployment, the
Council of Mortgage Lenders (CML)
said yesterday. The CML said the
number of home repossessions came
in at 8,500 between October and
December, down from 9,300 in the
previous three-month period, but up
from 8,100 at the end of 2010. In
2011, repossessions totalled 36,200,
the lowest since the start of the
financial crisis. The number of peo-
ple who fell behind with their mort-
gages also fell last year.
LONDONERS CASH IN ON GAMES
A survey by property website
FindaProperty.com estimates the
total Olympics rental market for flats,
apartments or houses could be worth
314m, based on one-in-three home-
owners considering letting out some
or all of their properties. Estate
agents say the number of short-let
clients on their books has risen
sharply. Even high-end service spe-
cialists such as onefinestay.com,
which handles properties typically
worth 1.5m, is receiving between
100-150 calls a week from people
looking to rent out their property
during the Games.
MORTGAGE NUMBERS SOAR
Loans for house purchase surged to
58,610 in January, according to the
latest Mortgage Monitor from e.surv
chartered surveyors. This is the high-
est level since December 2009, and
came thanks to an increase in lending
to borrowers with small deposits. The
figure represents an 11 per cent
increase on the 52,939 purchase
approvals in December, and a 29 per
cent year-on-year increase from
January 2011. The sharp increase has
been driven by more loans to borrow-
ers with small deposits, with more
first-time buyers being given access
to high-loan-to-value mortgages.
PROPERTY NEWS
Braddick House, Ruxley Heights, Claygate, Surrey KT10 0TZ
A substantial 5 bedroom detached residence set within an enviable location,
close to the village Priced at 2.1million Open Daily 10.30
am
- 4.30
pm
01372 461749 www.millwooddesignerhomes.co.uk
WHEN ONLY THE
BEST WILL DO
Photography of Braddick House
GOLD
Best Small Housebuilder
Property | Feature
29 CITYA.M. 10 FEBRUARY 2012
21 WAPPING LANE E1
www.nottinghillhousing.org.uk/quatro
Computer generated image in actual photography
Quatro Launching
Saturday 24th & Sunday 25th February
Quatro is a fantastic new development of 1, 2 and 3 bedroom shared ownership
apartments in trendy and desirable Wapping. Quatro will provide an exceptional
central London address within easy reach of the Thames and the many amenities
on offer. If youre looking to cut your commute and become a part of the largest
new development in the area for 10 years then Quatro is for you.
To book an appointment call 020 8357 4444
or email sales@nhhg.org.uk and quote CAM6
CURRENT MORTGAGE DEALS Source: MoneySupermarket.com
Lender Fixed/Flexible Rate Until APR Maximum Loan
(per cent) (per cent) to Value (per cent)
First Direct Flexible 1.99 2 years 3.6 65
Santander Flexible 2.09 2 years 4 60
Chelsea BS Flexible 2.39 March 2014 5.4 70
NatWest Flexible 2.45 March 2014 3.9 60
HSBC Fixed 2.24 May 2014 3.8 60
Santander Fixed 2.35 April 2014 4.1 60
Market Harborough BS Fixed 2.69 February 2014 5.1 75
First Direct Fixed 2.88 3 years 3.7 65
YAFFLE ROAD
Price: 5m
An eight bedroom property with an indoor swimming pool, landscaped gardens and a
bespoke kitchen by Mark Wilkinson.
Contact Knight Frank on 020 7629 8171 or knightfrank.co.uk
CAVENDISH ROAD
Price: 6m
A large modern six bed-
room family home within
the private St George's Hill
Estate with vaulted ceilings,
heated swimming pool and
secondary accommodation.
Contact Knight Frank on
020 7629 8171 or knight-
frank.co.uk
FOCUS ON: ST GEORGE'S HILL, WEYBRIDGE
OLD AVENUE
Price: 7.9m
Queen Anne style detached family home with seven bedrooms, six reception rooms
and eight bathrooms. The A3 is a short driving distance giving access to central
London and the M25. Contact Knight Frank on 020 7629 8171 or knightfrank.co.uk
Win the city parking war
A chronic lack of
parking in central
London is driving
competition for spaces
through the roof
A
nyone living in the capital with
a car knows central London is a
parking nightmare. Resident
parking hardly alleviates the
problem because many boroughs, like
Westminster, offer limited spacing. Of
course, you can always drive around
hoping a space will miraculously pres-
ent itself, but otherwise there is the
prospect of a long walk from your car
to your destination. Even then, there is
the possibility of your car being
scratched or damaged when left unpro-
tected.
Juliet Rawlings of Rawlings & Co
said, Being able to have parking for
ease is one thing but for security and
protection of the driver, occupants
and the vehicle is quite another.
It comes as no surprise, then, to see
that properties with integral garages
are commanding impressive prices.
One such property is Hays Mews, a
contemporary townhouse which fea-
tures an integral garage, on the mar-
ket for 6.95m with Rawlings & Co
and Savills.
Meanwhile, 240,000 per unit
might sound like the bargain of the
century for Hyde Park Gardens, the
exclusive area of central London
where flats sell for approximately
2,000 per square foot and range in
value from 1m to 20m. But the
240,000 isnt the price of a flat but
for a single, leasehold, uncovered on-
street parking space. One of these
spaces was recently sold by Kay & Co
to a resident of Hyde Park Gardens,
where for every three apartments
only one parking space is available.
Martin Bikhit, managing director of
Kay & Co says: For buyers at the top
end of the market, the comfort of hav-
ing a private designated parking space
on their doorstep is worth the fierce
competition and premium price.
T
E
R
R
E
S
T
R
I
A
L
THE GRAHAMNORTON SHOW
BBC1, 10.35PM
Judi Dench and Dev Patel talk about
their new film The Best Exotic
Marigold Hotel, which is released later
this month.
THE CULTURE SHOW
BBC2, 7PM
Andrew Graham-Dixon visits the
Lucian Freud exhibition at the National
Portrait Gallery and Zach Braff chats
about his play All New People.
HOLLYOAKS
CHANNEL4, 6.30PM
Nancy voices her suspicions about
Darren to her mother, and Ruby
discovers why Jono has been keeping
their relationship a secret.
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmLive Super League 10pm
Take It Like a Fan 10.30pm
Premier League Preview11pm
Football League Weekend 12am
Super League 2amTake It Like a
Fan 2.30amPremier League
Preview3amFootball League
Weekend 4am-6amSuper League
SKY SPORTS 2
7pmRoad to London 7.30pmLive
Premiership Rugby Union 10pm
WWE: Late Night Smackdown
12amWWE: Late Night Bottom
Line 1amPremiership Rugby
Union 2.30amInternational One-
Day Cricket 4.30am-6am
Premiership Rugby Union
SKY SPORTS 3
6pmEuropean Tour Golf 8pm
Live PGA Tour Golf 11pm
European Tour Golf 1amPGA Tour
Golf 4amTake It Like a Fan
4.30amPremier League Preview
5am-6amFootball League
Weekend
BRITISH EUROSPORT
6pmLive WTA Tennis 10pmLive
Skeleton 11.30pmSkeleton
12.30am-1amCycling
ESPN
7pmGerman Cup Highlights
7.30pmLive Bundesliga 9.30pm
Eredivisie 11.15pmESPN Kicks:
FA Cup 11.30pmPress Pass 2012
12amPremier League Preview
12.30amNBA Countdown 1am
Live NBA Basketball 3.30amNBA
Action 4amEuroleague
Basketball 4.30amTotal Italian
Football 5amPremier League
Preview5.30am-6amPress Pass
2012
SKY LIVING
7pmCriminal Minds 8pmKids
Who Have It All 9pmCriminal
Minds 10pmCSI: Crime Scene
Investigation 11pmBones 12am
Criminal Minds 1amCSI: Crime
Scene Investigation 2.40amMy
Wife and Kids 3.30amBones
4.20amNothing to Declare
5.10am-6amJerry Springer
BBC THREE
7pmDoctor Who 8.30pmThe
Real Hustle: Celebrity Chancers
9pmRussell Howards Good News
10pmEastEnders 10.30pmSun,
Sex and Suspicious Parents
11.30pmFamily Guy 12.15am
American Dad! 1amRussell
Howards Good News 2amBizarre
Crime 2.30amThe Real Hustle:
Celebrity Chancers 3amSun, Sex
and Suspicious Parents 4am-5am
Being Human
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmSupernanny US
9pmFILMTrading Places 1983.
11.15pmPlaying It Straight
12.20amThe Big Bang Theory
1.20amScrubs 2.15amHow I
Met Your Mother 2.40amRules
of Engagement 3amGreek
3.45amUgly Betty 4.25am-6am
Switched
HISTORY
7pmMounted in Alaska 7.30pm
Pawn Stars 8pmIRT Deadliest
Roads: The Andes 9pmMud Men
10pmCash Cowboys 11pmHow
London Was Built 12amPawn
Stars 12.30amMounted in Alaska
1amThe True Story 2amHow
London Was Built 3amOnly in
America 4amTitanic: A Tale of
Two Journeys 5am-6amCash
Cowboys
DISCOVERY
7pmBear Grylls: Born Survivor
8pmBears Wild Weekend with
Jonathan Ross 9pmStorm
Chasers 10pmAmerican Chopper:
Senior Versus Junior 11pm
Deadliest Catch 12amBear Grylls:
Born Survivor 1amStorm Chasers
2amAmerican Chopper: Senior
Versus Junior 3amWheeler
Dealers 3.50amMythbusters
4.40amIndustrial Revelations
5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmSupernanny US 8pmJon
and Kate Plus 8 9pm19 Kids and
Counting 10pmKate: Her Story
11pmEmergency 12am19 Kids
and Counting 1amKate: Her Story
2amEmergency 3amSupernanny
US 4amA Baby Story 5am-6am
Bringing Home the Babies
SKY1
8pmFuturama 8.30pmThe
Simpsons 9pmStella 10pmAn
Idiot Abroad 2 11pmA League of
Their Own 12amDog the Bounty
Hunter 1amFringe 1.55amDom
Jolys Happy Hour 2.50amRoad
Wars 4.15amLion Man
5.10am-6amDont Forget the
Lyrics
BBC2 ITV1 CHANNEL4 CHANNEL5
S
A
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E
L
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E
&
C
A
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TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show: BBC News
8pmEastEnders
8.30pmRoom 101
9pmHustle
10pmBBC News
10.25pmRegional News
10.35pmCHOICE The Graham
Norton Show
11.20pmThe National Lottery
Friday Night Draws 11.30pmFILM
Rescue Dawn. 2006. 1.30am
Weatherview1.35amSign Zone:
Question Time 2.35amSign Zone:
Great Barrier Reef 3.35amSign
Zone: Hairy Bikers Best of British
4.20am-6amBBC News
6pmEggheads: Quiz show,
hosted by Jeremy Vine.
6.30pmBritains Heritage
Heroes
7pmCHOICE The Culture
Show
8pmMastermind
8.30pmMastermind
9pmWild About Pandas
10pmQI
10.30pmNewsnight
11pmThe Review Show
11.45pmWeather
11.50pmFILMNight and the
City 1992.
1.30amThe Culture Show2.30am
BBC News 4.20am-6amClose
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmCoronation Street
8pmSafari Vet School
8.30pmCoronation Street
9pmLaw & Order: UK
10pmITV News at Ten
10.30pmLondon News
10.35pmFILMJaws: The
Revenge: Thriller sequel,
starring Michael Caine. 1987.
12.15amThe Zone; ITV News
Headlines
2.20amFILMOutbreak: Thriller,
starring Dustin Hoffman. 1995.
4.25am-5.30amITV Nightscreen
6pmThe Simpsons
6.30pmCHOICE Hollyoaks
6.55pm4thought.tv
7pmChannel 4 News
7.30pmChannel 4 Presents
2012: Jody Cundy Part Two
7.35pmCome Dine with Me
8.30pmNew Girl
9pmThe Million Pound Drop Live
10.30pmRude Tube: Love Bytes
11.30pm10 OClock Live 12.25am
FILMMona Lisa 1986. 2.15am
Random Acts 2.20amEnough
2.25amI Hate That Smile 2.30am
My Name Is Earl 3.20amHung
3.50amHung 4.20amHome
Country 4.25amBrothers & Sisters
5.10am-5.55amCountdown
6pmHome and Away
6.30pm5 News at 6.30
7pmRoyal Navy: Caribbean
Patrol: 5 News Update
8pmWorlds Toughest Trucker:
The challenge moves to
Mongolia in East Asia; 5 News
at 9
9pmFILMThe Last Samurai:
Historical adventure, starring
Tom Cruise. 2003.
12.10amSuperCasino
3.55amMotorsport Mundial
4.20amWildlife SOS 4.45am
Wildlife SOS 5.10amMichaelas
Wild Challenge 5.35am-6am
Michaelas Wild Challenge
1 2 3 4 5 6
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18
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7
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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 Tony ___, former UK
prime minister (5)
4 Prickly desert plants (5)
7 Hissing noise caused by
electrical interference (6)
10 Move in large
numbers (4)
12 Racial extermination (8)
13 Bloodsucking
African y (6)
14 Assume a stance (4)
16 City in Tuscany with
a famous tower (4)
19 Attendant who carries
golf clubs for a player (6)
22 Thin exible tube
inserted into the body (8)
23 Old-fashioned form of
the word you (4)
24 Quantity of medication
taken at any one time (6)
25 Lacking mercy (5)
26 Smallest amount (5)
DOWN
1 Place where vehicles halt
for passengers (3,4)
2 Memorable saying (5)
3 Harnesses (5)
5 Regions on opposite
sides of the Earth (9)
6 Woodland plants (5)
8 Private conversation
between two
people (4-1-4)
9 Pressured, compelled (7)
11 Former name of
Tokyo, Japan (3)
15 Worlds highest
mountain (7)
17 Fluid said to ow in the
veins of the Gods (5)
18 Means of returning
something by
post (inits) (3)
20 Lagoon encircled by
a coral reef (5)
21 Plays, theatre (5)
S
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4
4

4
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R D S B A D G E
A N O T H E R A A
B C A A L B R
B A T E D E A S E L
I O X E N M Y
F R O S T B I T E
K C H O N E A
O U S E L M A N O R
P P T A B D I
E A C H A M O I S
K A Y A K Y N E
2 5 7 8 4 7 9
6 7 8 9 6 9 8 2
1 6 3 2 5 1 5 3
4 8 9 8 2 3 1
3 9 8 9 5 6 7 4
2 9 7 1 8
2 5 1 6 4 3 4 9
1 8 1 2 6 1 7
7 9 8 6 1 5 2 4
3 7 4 9 7 9 5 8
4 1 2 2 8 3 6
4
4
4
4
4
4
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WORDWHEEL
The nine-letter word was
PRESERVED
Lifestyle | TV&Games
CITYA.M. 10 FEBRUARY 2012 32
Punter | Sport
34
FOOTBALL TRADER BEN CLEMINSON BRINGS YOU THE WEEKENDS
BEST PREMIER LEAGUE BETS
Red alert: shortage
of fire power to give
Dalglish a headache
E
XTRA motivation isnt nor-
mally required in this north
west derby, but the addition-
al carrot for Manchester
United tomorrow is that victory
will take them top of the Premier
League, until Sunday evening at
least.
However, Old Trafford hasnt
been the fortress it was last sea-
son when United dropped just
two points at home en route to
lifting their record 19th title.
Theyve suffered embarrassing
defeats to Manchester City and
Blackburn, while Newcastle left
with a share of the points, mean-
ing their record in front of their
own fans is only third best in the
division, behind City and
Tottenham.
Liverpool will take hope from
the fact that they beat United 2-1
at Anfield just two weeks ago, in
the FA Cup, and from their six
away victories this term.
Impressive wins have been picked
up at the Emirates, Goodison Park
and Stamford Bridge, but it must
be remembered they were ham-
mered 4-0 at White Hart Lane and
lost 3-0 at the Etihad Stadium.
In the previous eight meetings
in Manchester, the hosts have lost
just once and taken the spoils on
seven occasions, with United
securing league and cup triumphs
in 2010/11. Theres no doubt who
the bookies are siding with, and I
cant disagree, so take Corals 4/5
about Sir Alex Fergusons men.
While Uniteds 3-3 draw at
Chelsea demonstrated their
defensive fallibilities, it was every
bit as good a marker of their spir-
it and determination. And watch-
ing Liverpool in their goalless
encounter against Spurs at
Anfield summed up their trouble
in breaking teams down and find-
ing the back of the net. Tellingly,
after 24 games, United have
scored more than double the
amount their guests have, with 59
goals to Liverpools 28.
During four of their five defeats,
Kenny Dalglish has witnessed his
side fail to hit the target, and they
only managed one in their 3-1
defeat at Bolton Wanderers. The
Red Devils, meanwhile, have kept
clean sheets in six of nine home
wins. United to win to nil interests
at 2/1 with Coral, but Im more
tempted to back the 2-0 correct
score at 17/2 with the same firm.
They are best priced and offer a
handy bit of insurance.
The game should mark Luis
Suarezs return to the starting XI
and hes the man most likely to
strike for Liverpool. Coral will
refund losing first/last scorer, cor-
rect scores and scorecast bets if
the Uruguayan gets the final
goal. The advice for spread bet-
tors is to sell goals at 2.65 with
Sporting Index.
POINTERS...
Man United at 4/5 with Coral
Man United to win 2-0 at 17/2 with Coral
Sell total goals at 2.65 with Sporting Index
TOMORROW 12.45PM SKY SPORTS 1
LIVERPOOL
MANCHESTER
UNITED
THERE can be no denying this has
been a very disappointing season
for Aston Villa. Theyve won just a
quarter of their fixtures and a
club of their size and history real-
ly shouldnt find itself stuck in
lower mid-table.
As you would expect from an
Alex McLeish outfit, they havent
lost a silly amount of games, but
aside from a low win count, the
draws have stacked up their 10
stalemates is more than any other
side.
Results at Villa Park have been a
real let down, where theyve beat-
en only Blackburn, Wigan and
Norwich, and given supporters lit-
tle to get excited about with four
stalemates and five defeats.
Sundays visitors Man City have
had a bit of a wobble in recent
weeks and one win from six road
games offers promise for the
hosts, especially as City dont have
a great record at Villa Park of late.
That said, they cruised to a 4-1
victory in the reverse fixture and
look to have the beating of a
mediocre Villa side again, mean-
ing they should be backed. City
are odds on across the board, at
around 8/11, so utilise betting
concierge service Bet Butler to get
the best price available, and they
will also include a free bet up to
25 with the opening of a new
account.
Citys campaign has been any-
thing but dull and they have the
tools to undo Villa, who will look
to keep it tight. At 71 percent, a
very high proportion of Citys
games have seen over 2.5 goals.
Sporting Indexs spread of 2.7-2.9
match goals should be bought.
POINTERS...
Man City at around 8/11 with Bet Butler
Buy goals at 2.9 with Sporting Index
SUNDAY 4.00PM SKY SPORTS 1
MANCHESTER CITY
ASTON VILLA
FEW doubted Martin ONeills man-
agerial prowess, but after nearly a
year and a half in the wilderness,
the Northern Irishman is serving a
timely reminder on Wearside.
His reign at Sunderland has been
almost an unmitigated success since
replacing Steve Bruce in early
December. The Mackems have taken
a whopping 22 points from his 10
games in the hot seat to treble the
total he inherited. No side can match
that form over the same period.
A visit to the Stadium of Light
will, then, fill Arsenal with dread.
The Gunners might have romped to
a 7-1 victory over Blackburn last
time out, but that only papers over
the cracks that have developed this
season.
Arsenal have taken just one point
from their three away days in 2012.
That came in a lacklustre 0-0 draw
at Bolton after defeats at Fulham
and Swansea and their success or
otherwise seems to be inextricably
tied to Robin van Persies perform-
ances. But for his monster haul of 22
goals, the Gunners would be in a far
stickier situation than they already
find themselves in.
Having already lost six times on
their travels, defeat number seven
could be coming tomorrow.
Sunderland were only beaten at the
Emirates thanks to a late van Persie
strike his second of the game in a
2-1 win and they are great value at
12/5 with Blue Square. Selling
Arsenals supremacy at 0.3 with
Sporting Index could be an even bet-
ter option.
POINTERS...
Sunderland at 12/5 with Blue Square
Sell Arsenal supremacy at 0.3 with Sporting
Index
TOMORROW 3.00PM
ARSENAL
SUNDERLAND
Dalglishs Liverpool
lost twice at Old
Trafford last season
Picture: GETTY
35
RACING TRADER BILL ESDAILE PREVIEWS THE WEEKEND ACTION
AND LOOKS AHEAD TO THE CHELTENHAM FESTIVAL
A
RCTIC weather looks like once
again decimating this weekends
racing action and Newbury can
really be no more than opti-
mistic about staging tomorrows
bumper eight race card. Temperatures
are set to plummet to ludicrously low
levels again overnight and the frost
blankets, which have been down all
week, have their work cut out.
If the meeting is given the green
light, a field of 22 will go to post for the
Betfair Hurdle (3.45pm) with Paul
Nicholls Zarkandar currently heading
the betting at 3/1 with Coral. Last sea-
sons Triumph Hurdle winner has been
the subject of good support for the
Champion Hurdle and could well be in
a different class to this lot.
In all honesty, I think he will be very
hard to beat, but cant resist backing
both SIRE DE GRUGY and CICERON
against him each-way at decent prices.
The former was an emphatic winner of
the Grade Two Dovecote Hurdle at
Kempton last season before going on to
run a cracker when third to Topolski at
Aintree. He looks well handicapped and
his shrewd trainer has won this race
twice in the past four runnings, so the
14/1 on offer with Coral is hard to resist.
Ciceron travelled like a dream at
Ascot last time before failing to see out
the 2m3f trip. He will be extremely well
suited by tomorrows big field and with
a guaranteed strong pace could well
outrun his current odds of 5/2 with
Coral as he still looks ahead of his cur-
rent mark.
Long Run should be very hard to beat
in the Denman Chase (2.35pm), but I
wonder whether his trainer will want
to risk him on such uncertain ground,
with the Festival so close. However,
Nicky Henderson can start the day with
a winner in the shape of SIMONSIG in
the opener (12.55pm). He was outstayed
by Fingal Bay last time and the drop
back to a fast-run two miles looks just
the trick.
SPRINTER SACRE can make it a good
day for the yard by landing the Betfair
Super Saturday Chase at 3.10pm. The
six-year-old is one of the most exciting
novice chasers in training and looks
good enough to see off a few more sea-
soned rivals.
Leopardstown stages its Irish
Hennessy meeting on Sunday and the
feature race can go to the Willie
Mullins trained QUEL ESPRIT. The
eight-year-old seems to have ironed-out
all his jumping problems and the fact
that Jessies Dream, Quito De La Roque
and Syncronised have all been ruled out
this week makes his task much easier.
Mullins also holds a strong hand in
the Dr PJ Moriarty Chase earlier on the
card and his LAMBRO looks a decent
alternative to hot favourite Last
Instalment. Lambro is highly progres-
sive and the step up in trip will play
more to his strengths.
Looking ahead to the Cheltenham
Festival and Im keen to add Noel
Meades MONKSLAND at 14/1 for the
Neptune Investment Hurdle into our
ante-post portfolio. The Irish have won
four of the last six renewals and this fel-
low looks to have slipped under the
radar.
He made an impressive hurdling
debut in December over two miles, but
it was the manner of his win when
stepped up another half a mile last time
that really caught the eye. It was soft
ground that day, but connections
expect him to improve when he encoun-
ters a decent surface and the Neptune
looks the ideal race. Meade saddled
Nicanor to land this prize back in 2006,
so knows exactly what is required.
Admittedly, Fingal Bay is a rock-solid
favourite, but with doubts about the
participation of Boston Bob, I expect
Monksland to be half his current price
on the day.
Were delighted to have teamed up
with Coral to bring you our very own
racing centre which launches today.
You can find it by visiting
www.cityam.com and clicking on the
Punter section. It contains everything
from racecards, tips and a forum,
through to our very own tipping game
with a 1,000 prize up for grabs.
You can follow me on Twitter
@BillEsdaile.
LUKE MORRIS RIDE OF
THE WEEKEND
POSTSCRIPT 9.20PM
WOLVERHAMPTON
(TOMORROW)
T
HE Blue Square Sprint
Series has split into two
divisions again this week
and the first (2.15pm) is
typically competitive. Ron Harris
continues to fire in plenty of win-
ners and his Night Trade has to
be a danger with the promising
Darren Egan taking off 7lb.
Valmina ran a cracker at
Kempton last time following a
lengthy break and he has the
plum draw in stall one. Tony
Carrolls yard is flying, but a
mark of 68 could prove a shade
too high for this five-year-old.
HATTA STREAM was tipped up
in this column three weeks ago
and he was only just collared on
the line. Hes gone up a pound
for that, but has won off higher
in his career and can take this for
the in-form Lydia Pearce stable.
David Evans, the current lead-
ing trainer in the Blue Square
Sprint Series, holds a strong
hand in the second division
(3.20pm) with NUBAR BOY and
Captain Dimitrios. Preference is
for the former, who came with a
wet sail to almost beat
Diamond Vine a fortnight
ago and is nicely drawn
in two.
Make sure you bet with the
sponsors as they continue to offer
the fantastic promotion of
refunding bets if you are beaten
less than a length. You would
have got your money back on
both this weeks selections had
you backed them last time.
Check out the Blue Square
Winter Carnival App for all the
news on the Blue Square Sprint
Series, as well as exclusive
views from Luke Morris and
ATR all-weather specialist pre-
senter Simon Mapletoft.
POINTERS...
SIMONSIG 12.55pm Newbury (tomorrow)
SPRINTER SACRE 3.10pm Newbury (tomorrow)
SIRE DE GRUGY e/w 3.45pm Newbury (tomorrow)
CICERON e/w 3.45pm Newbury (tomorrow)
LAMBRO 2.40pm Leopardstown (Sunday)
QUEL ESPRIT 3.45pm Leopardstown (Sunday)
MONKSLAND 14/1 Neptune Investment Hurdle (Cheltenham)
Gary Moore
can be the
scourge of
the bookies
once again
Gary Moores Sire
De Grugy has a big
chance in tomor-
rows Betfair Hurdle
Picture: GETTY
Punter | Rugby
36 CITYA.M. 10 FEBRUARY 2012
RUGBY TRADER DAVID WILD SUGGESTS THE VERY BEST BETS FOR
ALL THE SIX NATIONS ACTION THIS WEEKEND
I
T was by no means a classic per-
formance, but Englands new
boys can be pleased to have a
first Six Nations win under
their belts. Victory was all that was
asked of them against defensively-
minded opposition at Murrayfield
and the Red Roses gutsy perform-
ance was a hint that this team will
get better and better with more
experience of playing together.
Against Italy at the Stadio
Olimpico Stuart Lancasters men
can expect more of the same. Recent
visits to Rome have been hard-
fought affairs. England laboured to
a 17-12 victory in 2010 and a 23-19
win two years before that. These
results are not exceptional the
Azzurri humbled France at the
venue last year, beating them by a
point and show that Italy can be a
match for anyone when spurred on
by their own fans.
Italy gave a good account of them-
selves and new coach Jacques Brunel
in Paris last week, showing a certain
amount of attacking promise, but
ultimately left too many gaps for
the French backs to exploit and lost
by 18 points. This is again likely to
be the Italians downfall, with
Englands runners hungry to cross
the try line after a disappointing
tally of one, courtesy of a charged
down kick, last week.
Despite not touching down him-
self, Englands outside centre Brad
Barritt looked a constant threat in
Edinburgh, and he is a worth a
small bet at 16/1 with Bet Butler to
score the first try tomorrow. The
tries Italy conceded last week came
from two wingers and two centres,
while the last Englishman to score a
try against Italy in Rome was
Mathew Tait, wearing the number
13 shirt.
England should be strong enough
in defence to overturn their eight
point handicap or, in other words,
win by more than a try and a penal-
ty. The advice is to back England (-8)
at 10/11 with Coral.
Fans will remember England run-
ning riot over the Azzurri at
Twickenham last year, Chris Ashton
scoring four of his sides eight tries
in a 59-13 win. While I dont expect
such a landslide this time, the
threat of a repeat is enough to put
me off selling points at 35 with
Sporting Index. Instead, sell tries at
3.2. A rampant France managed four
last week and I cannot see England
matching that.
TOMORROW 4.00PM BBC ONE
ENGLAND
ITALY
Expect the Red Rose
to rejoice in Rome
POINTERS...
England (-8) at 10/11 with Coral
Brad Barritt to score the first try at 16/1
with Bet Butler
Sell total tries 3.2 with Sporting Index
PHILIPPE SAINT-ANDRES France
demonstrated why they are favourites
for the Six Nations Championship
with a consummate performance
against Italy last weekend. Their
opponents put up quite a fight and
perhaps deserved more than defeat
by 18 points, but Frances class was
never in question. Importantly, Les
Bleus looked like a team once more -
their motto last week might have
been borrowed from a famous French
author: they certainly played all for
one and one for all.
Blessed with a second consecutive
home game to start their campaign,
there is no reason why they should
not also be backed to get a result
against much tougher opposition, in
this case Ireland. Declan Kidney was
left cursing the luck of the Irish
against Wales on Sunday, when his
side lost thanks to Leigh Halfpennys
last-gasp penalty. The manner of
defeat will not do much to boost the
confidence of a side that will need all
the help it can get to beat the World
Cup runners-up.
France are available outright at 1/4
with Coral, who again offer a 20 per-
cent bonus should your team win by
more than 13 points, and while Im
more than happy to take this, Id be
much more cautious about backing
France with a nine-point handicap.
Ireland remain one of the best
attacking sides in the tournament,
glimpses of outstanding hands last
week between Gordon DArcy, Fergus
McFadden and Tommy Bowe proving
so. From set pieces Ireland can cause
trouble too, particularly while Paul
OConnell enjoys the form of his life.
Thats not to say Ireland are good
enough to topple their opponents at
the Stade de France, only that it
might be closer than expected. Those
who are looking to make more bang
for their buck should consider back-
ing the hosts to lead at both half-
time and full-time, at 8/15 with Bet
Butler. Only one of the last six Six
Nations meetings between these
sides have featured less than 43
points so there seems little downside
to buying total points at 43 with
Sporting Index. A repeat of the 2006
meeting in Paris would be just the
ticket: a huge total of 74 points was
scored then.
POINTERS...
France at 1/4 with Coral
France HT/FT at 8/15 with Bet Butler
Buy total points at 43 with Sporting Index
TOMORROW 8.00PM BBC TWO
IRELAND
FRANCE
WALES are a best priced 1/8 with
Coral to beat Scotland at the
Millennium Stadium and its little
surprise. Warren Gatlands men
caused an upset in Dublin to set up
a potential Grand Slam decider with
France on the final day of the
Championship, while Scotland
floundered despite being given
opportunities at Murrayfield. I can-
not advise anyone but those with
the deepest of pockets to back the
hosts at that price though, but back-
ing them on the handicap (-13) at
10/11 with Coral also makes sense.
As discussed last week, Andy
Robinsons Scotland struggle to
score tries and again failed to cross
the try line against England. That
makes it just 20 in 25 matches. With
fly-half Dan Parks announcing his
retirement so soon after another
trusted kicker, Chris Paterson, the
Scots must now rely on the inexperi-
enced Grieg Laidlaw to pick up
points from spot kicks.
Conversely, the Red Dragons can
score from anywhere. They have a
wealth of kicking ability in
Halfpenny, Rhys Priestland and
James Hook; a strong and quick
back three which includes the ever-
improving 19-year-old George North;
and powerful, darting front men
such as Toby Faletau. Absences
remain a concern for them - Bradley
Davies is banned and captain Sam
Warburton is still an injury doubt -
but they were missing key players
against Ireland and it didnt seem to
bother them then.
On the basis of last weeks per-
formance, Scotland dont have a
hope in the cauldron of Cardiff,
amid the incredible atmosphere of
the Millennium Stadiums first Six
Nations game of 2012. I fear a rout
might be on the cards so advise buy-
ing Wales supremacy at 15 with
Sporting Index.
POINTERS...
Wales (-12) at 10/11 with Coral
Buy Wales supremacy at 15 with Sporting
Index
SUNDAY 3.00PM BBC ONE
SCOTLAND
WALES
Ashton scored
four tries against
Italy last year
Picture: GETTY
When Priority Tickets are gone, theyre gone. Pre sale closes 9am Monday 13 February. Terms apply.
Proud of England Rugby
Our customers can snap up the last few Priority tickets to the RBS 6 Nations
England v Wales and England v Ireland matches at Twickenham.
Tickets on sale 9am today.
Text ENGLAND to 2020
Sport
38
SPORT | IN BRIEF
Former Tour winner Ulrich banned
CYCLING: Former Tour de France winner
Jan Ullrich has been handed a two-year
ban for blood doping by the Court of
Arbitration for Sport. Ullrich was ruled
by CAS to have been linked with the
Spanish-based doping probe Operation
Puerta. All of the Germans results since
May 2005 have been struck from the
record books, including his third-place in
that years Tour.
Price agrees Sexton contest
BOXING: British heavyweight David Price
will fight Sam Sexton for the British and
Commonwealth titles vacated by Tyson
Fury. Olympic bronze-medallist Price, 28,
has a perfect 12-win record (10 KOs) and
will be favourite against former
Commonwealth champion Sexton. Price
said: Im disappointed he didnt step up
to the plate because it was the fight the
public wanted to see. I was talking to my
trainer and I think Sam Sexton is going to
prove more difficult to beat than Fury.
ENGLAND wicketkeeper Craig
Kieswetter insists he doesnt see his
change of role in the one-day side as a
demotion and is confident he can
adjust to the demands of being a mid-
dle-order batsman.
The Somerset man has shown only
flashes of brilliance since he came
into the 50-ver side two years ago as
an opening bat and has paid the price
for his patchy form.
Kevin Pietersen will replace his fel-
low South-African born star at the top
of the order when England kick-off
their four-match series against
Pakistan on Monday and Kieswetter is
relishing the upcoming challenge.
Its a challenge Im really looking for-
ward to, he said. Its obviously a lit-
tle bit different, but I hope my skills
can help better the side in that area.
The third powerplay and the last
10 overs are becoming more and
more important.
I think that was a great lesson we
learned from how the Indians played
in the last series.
Were looking to try to improve
our game and our squad, and we feel
that is one area where we can do so.
Meanwhile, England seamer Chris
Tremlett has undergone back surgery
to address the problem which forced
him out of the Test series defeat
against Pakistan in the United Arab
Emirates.
CHELSEA boss Andre Villas-Boas
insists the presence of owner Roman
Abramovich at the clubs training
complex this week should not be
treated as a sign that the Russian is
contemplating condemning him to
the Stamford Bridge managerial
scrapheap.
Abramovich hired Villas-Boas in the
summer, his sixth managerial
appointment since he assumed con-
trol of the west London club in 2004,
but the former Porto boss has been
unable to mount a credible challenge
for the Premier League title.
Chelsea, who head a four-way battle
with Newcastle, Arsenal and Liverpool
in the race for Champions League
qualification, surrendered a three-
goal lead against Manchester United
at Stamford Bridge last weekend.
That collapse has been followed
Abramovich to cast a closer eye over
proceedings this week, but Villas-Boas
is adamant the increased levels of
scrutiny have been anything but a dis-
traction.
The Portuguese revealed talks with
Abramovich this week had been
short and accurate and precise and,
ahead of tomorrows trip to Everton,
he added: The objectives we have for
this season are pretty much outlined.
You can speculate whatever you
want, but for us it is fantastic to have
him here. It is not distracting at all.
Abramovichs watching
brief wont distract AVB
FOOTBALL

CRICKET

Kieswetter prepared to
answer Englands call
TOTTENHAM boss Harry Redknapp
insists he hasnt given a moments
thought to the possibility of riding to
the Football Associations rescue by
accepting the challenge of becoming
the next England manager.
Several bookmakers yesterday
stopped taking bets on Redknapp suc-
ceeding Fabio Cappello, who resigned
on Wednesday just hours after the 64-
year-old former Portsmouth manager
was found not guilty of tax evasion
following a high-profile two-week
trial.
Despite the seemingly unstoppable
Redknapp for England bandwagon
gathering momentum by the hour,
the man himself yesterday revealed
his sole focus was centred on
Tottenhams Premier League match
against Newcastle at White Hart Lane
tomorrow.
Ive not even thought about it (the
England job). Ive got a job to do. Ive
got a big game on Saturday for
Tottenham. Tottenham is my focus.
The FA will today embark on the
process of selecting Capellos succes-
sor after the Italian walked away
from the job following the governing
bodys decision to strip Chelseas John
Terry of the England captaincy just
four months before the start of the
European Championships.
Asked whether he could help out
England this summer, Redknapp said:
Ive never thought about it. They (the
Football Association) will make what-
ever decision they want to make.
Hopefully itll be the right decision
for the country but my focus is all on
Tottenham.
The club have been fantastic to
me. The fans last week at the Wigan
game it was incredible the recep-
tion they gave me. It wouldnt be
right for them, (for me) to focus on
anything else but Tottenham.
Spurs are the
only thing on
my mind, vows
Redknapp
Countrys unanimous choice Redknapp boosted as
England bosses admit public and player opinion will
hold sway over their choice of Capello replacement
FA chiefs in
Harry hint as
new manager
search begins
ENGLAND manager elect Harry
Redknapps candidacy received
another boost yesterday when the
Football Association vowed to lis-
ten to fans and players as they
begin the process of recruiting a
successor to Fabio Capello.
Redknapp is the overwhelming
favourite for the role, with sup-
porters, pundits and players seem-
ingly unanimous in their support
for the man who has
revived Tottenhams for-
tunes in his four years
at the club.
Bookmakers have
stopped taking bets
on whether he will
take over, focusing
instead on whether he
will be appointed in
time to lead a currently
rudderless squad into this
summers European
Championship.
FA chairman David Bernstein,
who admitted they were looking
for an English or British candi-
date, said popular opinion would
sway their decision but insisted he
would not reveal his hand yet.
Of course it will. We want to
make an appointment that the
public are positive about and that
excites the fans, he said.
But we cant be driven by that.
If you only have one candidate,
then it makes a very difficult situ-
ation indeed when negotiating
and so on. So we have to do it pro-
fessionally, with an open mind
and put a shortlist together, but
also include the desires and wish-
es of our fans, which are cru-
cial to us.
Asked outright about
Redknapp by reporters
outside his home earli-
er yesterday, Bernstein
(inset) did little to dis-
pel the feeling the 64-
year-old east Londoner
is also the FAs No1
choice. Well see, he said.
A long way to go.
Redknapp faces no notable com-
petition if the FA choose English,
but Bernstein left the door open
for another overseas big-hitter,
such as former Chelsea managers
Jose Mourinho or Guus Hiddink.
He will not definitely be
English, he added. Clearly
theres a preference for an
Englishman but in the end we
want the best person.
Bernstein, general secretary
Alex Horne, director of football
development Sir Trevor Brooking
and Team England managing
director Adrian Bevington will
officially begin the search by
meeting today. Yesterday they
were still forced to defend the sud-
den manner of Capellos resigna-
tion, which came following crisis
talks at Wembley on Wednesday
afternoon.
Bernstein said he did not know
whether the Italians departure
could have been avoided but
admitted his public criticism of
the FAs decision to strip John
Terry of the captaincy wasnt
helpful.
Defending the demotion of
Chelsea skipper Terry, who is
awaiting trial over allegations he
racially abused QPRs Anton
Ferdinand, Bernstein added: I
think we got it absolutely right.
BY FRANK DALLERES
FOOTBALL

Bookmakers have
stopped taking
bets on Redknapp
to be England boss
Picture: GETTY
BY JAMES GOLDMAN
FOOTBALL

39
WILL VAN PERSIES GOALS BE
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email sport@cityam.com
GIFT OF A WIN AT MURRAYFIELD
Englands opening Six Nations win in Scotland
left me with mixed feelings. It was good to
win, not having done so there for a while, and
the young guys did well so they can enjoy that
experience.
But I think the game was gifted to England
more than they won it themselves and the
concern is they didnt threaten to score a try.
While there was good scramble defence, there
were too many busts of the England line.
Scotland are probably the joint last team in
the Six Nations, but that said it was an away
win and England can go to Italy with confi-
dence. Theyre going to need to.
DOWSON UNDER PRESSURE
Stuart Lancaster is right to keep the same
team, retain momentum and give them anoth-
er chance. Even if England had lost at
Murrayfield I think hed have stuck with that
line-up, because the last thing you want is to
have young guys like Owen Farrell come in for
one game, have a poor one and then go.
But there will come a time when players
are not given a two-match cushion to play
themselves in. If that performance had come
later in the championship I think hed have
looked to make changes.
I think Phil Dowson needs to have the
game of his life to keep his place. Is he a natu-
ral No8? He is under pressure and Ben
Morgan did very well when he came on.
Maybe Toby Flood should be on the bench,
although Farrell can switch from centre to fly-
half, so they have options.
ITALY TOUGHER THAN SCOTS
Id suggest that tomorrows trip to Rome is
actually a tougher fixture than Scotland. Italy
are better and better every year, their state
teams are improving in Europe and the
Olympic Stadium will be full of 70,000-
80,000 proud people.
Italys biggest problem is they havent got
any world class backs. They used to try and
throw it around but now theyll probably try
to dominate up front. England will be facing a
pack that held its own against France and
sometimes dominated, so Id be very con-
cerned about this game.
Its a good opportunity for England to show
their worth. Theres no doubt that the game to
play against the Italians is to front up and
move them around the pitch. But with 10, 12
and 13 coming from Saracens, who dont play
that way, it will be interesting to see how
England try to get the back three into the
game, which they need to do. I imagine theyll
try a lot of strike plays to get the back three
involved. I just hope we dont get sucked into
win-at-all-costs mode and kick for the corners.
Kyran Bracken was speaking courtesy of
GamePlan Solutions: Managing high
profile and popular sport stars; speak-
ers, leaders, motivators, ambassadors
www.gameplansolutions.co.uk
KYRAN BRACKENS
PRE-MATCH
VIEW
When in Rome, exploit back three
Lancaster trusts continuity
to breed improved display
SCOTLAND captain Ross Ford insists
they want the Millennium Stadium
roof closed so they can take on Wales
at their own game on Sunday.
Ford rejected suggestions the fore-
cast rain and slippery conditions
might offer the visitors better hope of
pulling off a surprise Six Nations win.
Weve asked for the roof to be
closed that guarantees us a nice dry
ball to play the way we want, he said.
We believe weve got the ability to
put pressure on Wales with the way
we want to play and wed prefer it if
the roof was closed.
RUGBY UNION

Scots will raise

roof in Cardiff,
promises Ford
IRELAND skipper Paul OConnell is
adamant they can bounce back from
defeat to Wales and record only their
second win in France since 1972.
Outside centre Keith Earls replaces
Fergus McFadden in the lone change
to Declan Kidneys side for tomor-
rows Six Nations clash in Paris.
OConnell said: Against France
away from home you need to start
well. Its frustrating that I havent
beaten France in Paris, but we have a
team that can do it.
RUGBY UNION

OConnell eyes
end to Irelands
away day Bleus
ENGLAND coach Stuart Lancaster has
backed his embryonic side to learn
the lessons of last week and sharpen
their attacking threat when they col-
lide with Italy tomorrow in the Six
Nations.
Lancaster has kept faith with the
same team that eked out a 13-6 victo-
ry over Scotland in their opening fix-
ture, despite the unconvincing
nature of their triumph at
Murrayfield.
But the interim head coach has
warned his nascent outfit that he
expects them to stay on the front foot
and make better use of possession
against ever-improving Italy in the
Stadio Olimpico.
And he is banking on using replace-
ments such as No8 Ben Morgan, who
is pushing Phil Dowson hard for a
starting place, to inject extra momen-
tum after half-time as Lancaster looks
to make it two wins from two.
Italy will be a very difficult chal-
lenge with nearly 700 caps in their
starting line-up and it promises to be
an outstanding occasion at the sold-
out Stadio Olimpico, he said.
The bench is an important dynam-
ic for us, in the same way it was last
week. The likes of Ben Morgan com-
ing on in the second half will bring
power and tempo to our game.
Where we struggled at points
against Scotland we didnt retain
enough quality possession. We need
to make sure we give ourselves more
time with the ball and less time
defending.
Fly-half Charlie Hodgson, who
again forms an all-Saracens midfield
with Owen Farrell and Brad Barritt,
and replacement scrum-half Lee
Dickson both shook off injury in time
to fly to Rome yesterday afternoon.
Lancaster has repeatedly drummed
home the emphasis he places on
team spirit and togetherness, and
hopes keeping faith with the same
side will allow them more time to
gel together.
Italy and Leicester prop Martin
Castrogiovanni, meanwhile, admits
the home side will need to master a
flawless display if they are follow last
years shock win over France with
another Six Nations upset.
A lot of people think we have the
opportunity to win but its going to
be a tough game because England
have a massive pack of forwards, said
Castrogiovanni. England put a lot of
pressure on at the scrum. They will
attack us where we are strongest and
we need to be prepared for them. If
we are to win then we need to play
the perfect game.
England trained before leaving for Italy
yesterday Picture: GETTY
15. Ben Foden (Northampton Saints)
14. Chris Ashton (Northampton Saints)
13. Brad Barritt (Saracens)
12. Owen Farrell (Saracens)
11. David Strettle (Saracens)
10. Charlie Hodgson (Saracens)
9. Ben Youngs (Leicester Tigers)
1. Alex Corbisiero (London Irish)
2. Dylan Hartley (Northampton Saints)
3. Dan Cole (Leicester Tigers)
4. Mouritz Botha (Saracens)
5. Tom Palmer (Stade Francais)
6. Tom Croft (Leicester Tigers)
7. Chris Robshaw (Harlequins, capt)
8. Phil Dowson (Northampton Saints)
Replacements: Rob Webber (London Wasps);
Matt Stevens (Saracens); Geoff Parling
(Leicester Tigers); Ben Morgan (Scarlets); Lee
Dickson (Northampton Saints); Jordan Turner-
Hall (Harlequins); Mike Brown (Harlequins)
ENGLAND TEAM | TO FACE ITALY
BY FRANK DALLERES
RUGBY UNION

ITALY
ENGLAND
France 1 1 0 0 30 12 2
England 1 1 0 0 13 6 2
Wales 1 1 0 0 23 21 2
Ireland 1 0 0 1 21 23 0
Scotland 1 0 0 1 6 13 0
Italy 1 0 0 1 12 30 0
SIX NATIONS
TEAM P W D L F A PTS
I was left with no
option but to quit,
admits Capello
OUTGOING England manager Fabio
Capello revealed last night that the
Football Association left him with no
option but to resign after they opted
to relieve John Terry of the captaincy.
FA chairman David Bernstein admit-
ted yesterday that Capello had been
unwilling to accept the decision to
remove Terry as England skipper due
to the Chelsea defenders pending
racism trial in July.
I acted the way I always have in
football, said Capello. I cannot per-
mit interference from the FA in my
work. I have always been clear who
should manage the team and who has
to take decisions. I would like to thank
the players, the staff and the FA for
the professional approach they have
shown during the years I have been
manager of the national team.
Under-21 boss
Pearce placed in
temporary charge
ENGLAND under-21 manager Stuart
Pearce has been backed to calm the
maelstrom surrounding the senior
team and guide them through the
friendly with Holland on 29 February.
Pearce, who was also an assistant
to former national team boss Fabio
Capello, has been placed in temporary
charge until the Football Association
appoint the Italians permanent
replacement.
He has huge experience outside
and inside the organisation, FA chair-
man David Bernstein said of the for-
mer England full-back, who will also
manage Team GB at London 2012.
He has been working with the
under-21 team and has been working
with Fabio for some time. I have got
great confidence in Stuart, we will be
in good hands.