FTSE 100 t5,874.82 -36.31 DOW t12,962.81 -14.76 NASDAQ t2,950.48 -25.71 /$ 1.59 +0.01 / 1.20 unc /$ 1.

1.20 unc /$ 1.32 unc

RETAIL sales grew strongly in
February, continuing the revival seen
in recent months and adding to hopes
that UK consumer confidence is
returning, according to industry fig-
ures published today.
Numbers from the British Retail
Consortium (BRC) revealed total sales
rose 2.3 per cent compared with
February 2011, an acceleration from
the 2.1 per cent rise in January and the
ninth consecutive monthly increase.
On a three-monthly basis, food sales
rose 4.9 per cent on the same period a
year ago, while non-food sales rose 1.4
per cent.
Online non-food sales kept boom-
ing, up 9.9 per cent in February, year
on year, compared with 11.3 per cent
in January and 18.5 per cent in the
year to December.
But like for like sales, the measure
used by retailers to judge the success
of existing stores, was down 0.3 per
cent.
BY TIM WALLACE
UK ECONOMY

Boris Johnson said he was lobbying to change new EU rules for insurers
BORIS Johnson has written to the chief
executive of Prudential in a bid to con-
vince the insurance giant to keep its
headquarters in London, City A.M. has
learned.
The Mayor sent the letter to Tidjane
Thiam last Friday, following the revela-
tion that Prudential was considering
moving its headquarters to Hong Kong
to avoid tough new European rules for
insurers known as Solvency II.
Johnson, who is campaigning to be
re-elected in May, said he was
extremely concerned to learn that a
change of domicile was under review
and promises to lobby both in
Brussels and London to ensure that
Solvency II does not cause European
insurers to relocate outside the EU.
Chief among Prudentials concerns
is that it could be forced to raise a large
amount of expensive capital against its
US business, Jackson Life, because the
EU is afraid that American regulators
are too lax. That would make it much
harder to compete with its US-based
rivals.
In the letter, Johnson promises to
push for so-called equivalent status
for US regulators, meaning Jackson
Life could be capitalised according to
looser American requirements so that
Prudential is on a level footing with its
US rivals.
He also says he will campaign for
proper transitional arrangements
once the rules come into effect from
2013, allowing Prudential and others
to raise capital over time or to divest
their US businesses without becoming
forced sellers.
BY DAVID CROW
www.cityam.com Issue 1,585 Tuesday 6 March 2012 FREE
CINEMA
GOES
GASTRO
PAGE 29
BUSINESS WITH PERSONALITY
Last week, Prudential which gener-
ates almost half of its revenues in Asia
admitted that it was considering
changing its domicile, but it is not
thought to have any plans to quit
London imminently.
Prudentials departure from the UK
would be a major blow for the chancel-
lor George Osborne, who has over-
hauled the corporation tax regime to
convince companies to stay in the UK.
WPP, which relocated from London to
Dublin in 2008, has said it will return
as a result of the reforms if it secures
shareholder approval.
Johnson also uses the letter, which
was sent to Prudential chairman
Harvey McGrath as well, to remind
Thiam of the many advantages of
being based in London.
An increasingly favourable corpora-
tion tax regime, a thriving social and
cultural scene (second to no other city
on the planet), and the most qualified
and internationalised workforce of
any major city in the world.
A spokesman for Prudential said:
We have received a letter from the
Mayor of London. Of course we would
be pleased to discuss with the Mayor
our concerns about the unintended
consequences of Solvency II.
The Treasury said in a statement:
The UK government remains commit-
ted to securing the best possible out-
come for the UK insurance industry
under Solvency II. This includes achiev-
ing clarity on the timeline for imple-
mentation as well as the final shape of
Solvency II requirements particular-
ly on equivalence and the Matching
Premium.
Certified Distribution
02/01/12 till 29/01/12 is 92,258
Dear Tidjane,
As Londons Mayor I was extremely
concerned to learn that a change of
domicile was under review...
...I wanted to let you know that we
always work to ensure that
European regulatory initiatives do
not work against the interests of the
UK...
...Finally, I would obviously like to
remind you and your board of the
many advantages to your firm
being based in London...
BORIS BEGS
PRUTOSTAY
READ OUR
BORIS JOHNSON
INTERVIEW
PAGES 16 & 17
EXCLUSIVE

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WALL Street bonuses fell by a quarter
last year, according to the latest offi-
cial estimate by US regulators.
That is twice the rate American
officials had suggested only last
week, and is set to be followed by
4,300 job cuts on the Street this year,
according to New York Citys
Independent Budget Office (IBO).
The IBO is also forecasting that
overall pay on Wall Street will fall by
7.5 per cent in 2012.
The lower fall in total pay shows
that the burden of firms fixed costs
is increasing as regulators turn up
the pressure on variable bonuses.
The higher costs and lower profits
have also prompted the IBO to slash
its job creation forecasts for Wall
Street from 38,800 to 22,000 for
2012.
A knock-on effect on tax revenues
is also anticipated from 2013
onwards.
BY JULIET SAMUEL
BANKING

US bonuses
down 25pc
Retail sales
on the rise
News
2 CITYA.M. 6 MARCH 2012
Greece: deal
is only option
A DOZEN of Greeces private creditors
said yesterday that they plan to partic-
ipate in the countrys debt swap as
Athens finance minister warned oth-
ers that they will not get their money
back no matter what.
Evangelos Venizelos gave a stark
warning to any hold-outs that Greece
cannot pay its debts and is fully pre-
pared to activate retrospective clauses
in its bonds that could impose the deal
on uncooperative creditors. Whoever
thinks that they will hold out and be
paid in full is mistaken, he said.
Greece needs over two thirds of its
private creditors to agree to swap their
current bond holdings for a mix of
longer-dated bonds and debt issued by
the Eurozone bailout fund. If two
thirds agree, the deal can be forced
upon the rest. If three quarters sign
up, it will be deemed a voluntary
debt swap.
The 12 who agreed to take part yes-
terday include eight banks three of
them Greek three insurers and one
asset manager. They make up around
a quarter of the bodies Athens needs
to get on board.
If the deal falls through, Greece will
default and could be forced out of the
euro, a scenario that its creditors have
estimated could cost 1 trillion in total
to private investors and public
European bodies.
BY JULIET SAMUEL
EUROZONE

War on Britains aspirational classes

THERE is something very wrong with
Britains tax system. Imagine you are
an aspiring, successful hard-working
individual; after several years putting
in the hours, you now earn 42,475 a
year. Youre already a victim of the tax
system: you pay no tax on your first
8,105, but then face 20 per cent tax on
the rest, as well as 12 per cent national
insurance (using 2012-13 numbers).
Above the zero-rated band, you hand
over 32 per cent of your income to the
state and probably dont even realise
your employer has to pay an extra 13.8
per cent on top in extra national insur-
ance. Many see this as a corporate tax,
but in fact it is a tax on labour, equiva-
lent to an overall rate of 40.2 per cent.
The broader picture is just as grim:
your real wages are going down
thanks to 3.9 per cent retail price infla-
tion, with mortgages on the rise again.
When you spend what is left of your
money, you are hit again: 20 per cent
Vat on most goods and services, mas-
sive sin taxes, air passenger duty, all
payable out of your post-tax income.
Dont even dream of the 250,001 flat
down the road, for which you have
been saving for years: stamp duty is
payable at three per cent. Your total
tax bill including council tax will end
up at well over half of a years income.
Now you get a 3,000 pay rise. But
wait: you get caught by the 40p tax
rate, as well as by the extra 2p national
insurance. Your 3,000 is only worth
1,740. But because you have two kids
you could soon also lose your 1,752.40
in child benefits, which means you are
actually worse off than before your not
insubstantial 7 per cent pay increase.
Such are the unintended conse-
quences of George Osbornes plans to
remove child benefits from 40p taxpay-
ers. You (and many like you) are better
off working less. Its madness and
thats even before other benefits, tax
credits and income-contingent student
loans. In truth, it makes no sense for
the state to pick peoples left pockets
via taxes merely to return cash to their
right pocket via benefits (with a chunk
wasted on bureaucracy). Universal ben-
efits are dumb. But the proposed
reform is technically flawed. There
should be a deal: cut benefits for work-
ers but also cut tax in return regret-
tably, not what Osborne is proposing.
Lets now assume you continue to
work hard, start a business, or climb
the corporate ranks. That remains the
meritocratic dream of millions of
Brits, many of them from humble ori-
gins. Imagine you are one of the lucky
few that breaks the 100k barrier. But
between 100k and 116,210, you lose
1 of your personal allowance for each
2 hike in income. You refuse to be dis-
couraged and end up on over 150k,
from where you retain just 48 per cent
(and just 42.2 per cent if all national
insurance is included) of your margin-
al income. Taxpayers can still get tax
relief if they tuck cash away in a pen-
sion, but that too is under threat. And
if you scrimp and save for a four or five-
bed home for your family, you will be
hit by at least 20k in stamp duty.
Yes, the UK is truly a great place for
the hard-working, law-abiding classes:
high inflation, rock-bottom saving
rates, rising petrol prices, surging
mortgage rates, ever higher direct and
indirect tax and now the threat of
extra council tax for those with family
homes and reduced benefits with no
compensating tax cuts. The millions of
folk who make up the UKs aspiring,
entrepreneurial, business and profes-
sional classes are the bedrock of
Britains prosperity so why does
nobody in government stand up for
them any more? Are the Tories asleep?
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
RUSSIAN police arrested hundreds of
protesters yesterday as Vladimir Putin
faced questions over the legitimacy of
his election as president.
Putin was criticised by international
election observers a day after claiming
victory on 64 per cent of the vote.
The Organisation for Security and
Co-operation in Europe (OSCE) raised
serious questions about the elections
validity due to unequal state fund-
ing of the campaigns and skewed
media access and coverage.
The point of elections is that the
outcome should be uncertain. This
was not the case in Russia. There was
no real competition and abuse of gov-
ernment resources ensured that the
ultimate winner... was never in doubt,
said OSCEs Tonino Picula.
Reports suggested that some 500
peaceful protesters were locked up.
Prime Minister David Cameron
stopped short of congratulating Putin
on the elections yesterday, instead say-
ing in a phone call that he had been
following developments closely.
BY JULIET SAMUEL
POLITICS

Russia criticised over vote

Hundreds of Russian political protesters were arrested in Moscows Pushkin Square
NEWS | IN BRIEF
US rivals close in on Super Tuesday
Rivals Mitt Romney and Rick Santorum
made their final pitch for support in the
battleground US state of Ohio yesterday,
the day before 10 states hold Super
Tuesday nominating contests that could
be pivotal in an unpredictable
Republican presidential race. Romney
has been gaining on Santorum in Ohio
polls all week, erasing a double-digit lead
for the former senator from
Pennsylvania. Ohio is the largest battle-
ground and most closely watched prize
of the 10 contests on Super Tuesday, the
biggest day of voting in the Republican
race to find a challenger to President
Barack Obama in the November election.
FSA brings 1bn fraud case
Seven men were accused in court yes-
terday of a 1m fraud using confidential
bank documents in the largest insider
dealing case ever brought before court
by the UK financial regulator. A lawyer
for the Financial Services Authority told
Southwark Crown Court that the men
used inside information to place spread
bets on companies shortly before
takeovers were announced. The men
deny the charges.
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
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Greek finance minister
Evangelos Venizelos is
taking an aggressive
approach to the
countrys creditors
4th Floor, 33 Queen Street, London, EC4R 1BR
Tel: 020 3201 8900 Fax: 020 7248 2711
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Gavin Billenness
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
REGULATORS CONSIDER AN OVERHAUL
OF LIBOR
UK regulators and global banks are
discussing a potentially far-reaching
overhaul of the calculation and regu-
lation of interbank lending rates,
amid claims that the benchmark for
$350 trillion contracts worldwide
may have been subject to manipula-
tion.
STARBUCKS TAKES COFFEE WARS TO
NESPRESSO
Coffee capsule wars are set to break
out in Europe as Starbucks elbows in
on Nespressos home turf. The Seattle-
based coffee chain, which is already
revamping its European operations to
move away from identikit stores in
every country, is aiming to replicate
the strong sales of its own capsule cof-
fee in the US.
SUSPENDED CHEVY VOLT WINS CAR
PRIZE IN EUROPE
The Chevrolet Volt, General Motors
pioneering but troubled electric car,
has won a top automotive industry
award. The Volt and its European
counterpart, the US-built
Opel/Vauxhall Ampera, were voted
Car of the Year 2012 yesterday, ahead
of this weeks Geneva motor show.
TESCO CHIEF SPELLS OUT HOPES FOR US
DIVISION
Tescos lossmaking chain of US stores
is likely to reach a breakeven point as
early as this year, the retailers chief
executive Philip Clarke forecast in his
most upbeat assessment yet.
SWEET DEAL FOR JAGUAR COULD BE
SOUR FOR STAFF
Jaguar Land Rover could start manu-
facturing in China within two years.
In a move that would help to open up
the booming Chinese market for lux-
ury cars, The firm is understood to be
close to signing a 1.8bn production
alliance with Chery.
OIL GROUPS INVITED TO TAP THE
AFGHAN-TAJIK BASIN
After decades of war and instability,
Afghanistan is eager to convince the
world that it is a place where people
can make money. It will take steps
towards that end tomorrow when the
countrys largest oil exploration
licensing round opens in London.
BT-FUNDED TRADE SHOW OFFERED
EXECUTIVES ROMANTIC DINNERS WITH
YOUNG RUSSIAN ESCORTS
Delegates at trade show Mobile World
Congress, funded by companies
including Vodafone and BT, were
offered romantic dinners with
young Russian escorts in exchange for
attending business meetings.
DUTCH FREEDOM PARTY PUSHES EURO
EXIT AS 2.4 TRILLION RESCUE BILL
LOOMS
The Dutch Freedom Party has called
for a return to the Guilder, becoming
the first political movement in the
Eurozone with a large popular base to
opt for withdrawal from the single
currency.
NATURAL GAS TO POWER PICKUPS
US auto makers are introducing pick-
up trucks powered by natural gas as
they look to catch the growing wave
of interest in the fuel as an alterna-
tive to gasoline. Chrysler Group plans
to build the first production-line pick-
up truck powered by natural gas.
General Motors plans to offer bi-fuel
Chevrolet Silverado and GMC Sierra
2500 pickups.
JUSTICES WONT HEAR PHOTO SITES
SUIT AGAINST GOOGLE
The US Supreme Court yesterday
rejected an appeal by a nude-photo
publisher Perfect 10 that alleged
Google was infringing its copyrighted
images by displaying thumbnails.
WHAT THE OTHER PAPERS SAY THIS MORNING
The new jobs website for London professionals
CAREERS.com
SHARES in Misys jumped six per cent
to 335p yesterday as a third suitor
entered the race for the software
company just hours before Temenos
deadline to confirm or withdraw its
interest.
ValueAct, Misys largest sharehold-
ers with a 21.5 per cent stake, has
joined forces with private equity
group CVC Capital Partners and is
considering making a cash offer for
Misys.
A bid from the duo would have to
rival a cash offer from private equity
firm Vista, thought to be hovering
around the 1.2bn mark, and the
proposed merger with Temenos,
which would see Misys shareholders
own 53.9 per cent of the combined
group but the British companys
chief Mike Lawrie formerly of
ValueAct hand over to Temenos
boss Guy Dubois.
Under the new takeover rules,
ValueAct and CVC have until 2 April
to confirm or withdraw their inter-
est.
Temenos bid deadline is today.
Misys battle
heats up with
third entrant
BY LAUREN DAVIDSON
TECHNOLOGY

MARKETS fell around the world as

China cut its official economic
growth target to its lowest level in
eight years yesterday.
Premier Wen Jiabao lowered the
target growth rate from eight per
cent to 7.5 per cent, claiming the
slower level allowed for higher level,
higher quality development.
The FTSE fell 0.61 per cent, the
Nasdaq dropped 0.86 per cent, and
the EuroStoxx 50 was down 0.64 per
cent on the downbeat news.
China is set to focus on shifting the
economy from export-led growth
toward more consumption.
We will vigorously adjust income
distribution, increase the incomes of
low and middle-income groups, and
enhance peoples ability to consume,
said Wen. CITYVIEWS: P13
MARKET REPORTS: P22
Drop in Chinas econonic growth
target sends markets into a spin
WORLD ECONOMY

News
3 CITYA.M. 6 MARCH 2012
Jeffrey Ubben, ValueCapital chief executive Robert F Smith, who heads up Vista Equity
Temenos boss Guy Dubois Mike Lawrie, chief executive at Misys
The Misys or is that Midas touch
W
HEN Misys allegedly
turned its nose up at
Fidelity National last sum-
mer, considering itself bet-
ter than the 400p per share it was
offered, the City raised its eye-
brows.
And when Misys share price
almost halved in the last six
months of 2011, many came close
to saying I told you so.
But now the City looks a little
sheepish as Misys seems close to
pulling a golden rabbit out of the
hat much to analysts surprise.
Misys proposed merger with
Temenos seemed a done deal, even
if it failed to stir the loins of the
British companys investors.
But this new manoeuvre is
fresh evidence that the above sce-
nario represents the worst possi-
ble outcome, says Roger Phillips
at Merchant Securities.
Until now, ValueAct Misys
largest shareholder and its newest
potential bidder voiced approval
of the merger outcome, but its lat-
est move seems to be pointing out
the holes in Temenos offer like a
Swiss cheese.
So why the change of face?
Strategically, Temenos brings a
strong case to the table with oppor-
tunity for combined customer
bases and cost synergies but the
seductive smell of cash is more
likely to be what Misys sharehold-
ers are sniffing around for.
Either way, Misys wont
begrudge the extra attention,
which has sent its share price rock-
eting by over 40 per cent this year
and, according to some brokers
including Jefferies and Merchant,
could take its potential exit price
back to the 400p mark it waved
goodbye to last summer and feared
it might never see again.
BOTTOMLINE
Analysis by Lauren Davidson
ANALYSIS l Misys PLC
P
23Feb 29Feb 1 Mar 2Mar 5Mar
335
330
325
320
315
335.00
5 Mar
ment to push for continued growth at eight per cent.
In recent years, the GDP target has been a minimum acceptable
floor rather than a ceiling, said Paul Cavey from Macquarie Bank
Meanwhile data published by Markit yesterday indicated renewed
growthinthe countrys service sector and stabilisationinmanufac-
News
5 CITYA.M. 6 MARCH 2012
GLENCORE chief executive Ivan
Glasenberg yesterday said the com-
panys naysayers who were trying
to torpedo the proposed $37bn
(23bn) bid for miner Xstrata were
failing to appreciate its poten-
tial.
Glasenberg (pictured) said
all sides would benefit from
the extra clout the pair would
have on world markets.
However Standard Life,
which has a 2.2 per cent
holding in Xstrata,
is one institu-
tional investor
to pour cold
water on
the pro-
posal. Glasbenberg used Glencores
2011 preliminary results showing
a seven per cent rise in profit to
$4.3bn as evidence that the com-
pany was growing.
On the strength of those results
the commodities giant announced
a dividend of $0.10 a share in
its maiden set of annual
results as a public firm.
That means a 69m wind-
fall for Glasenberg, who
owns 15 per cent of the
company. The boss, who is
on a salary of 900,000,
said he would plough
the dividend back
into the compa-
ny and had
decided not to
take a bonus
for 2011.
The chief executive said: My job
is to convince the naysayers who do
not understand Glencore.
We have physical commodities.
We are not a bunch of speculators
sitting behind [computer] screens.
The offer is based on a merger
of equals. Shareholders do not usu-
ally receive a premium on such a
deal.
He added that Xstratas chief
executive Mick Davis had been a
hard negotiator who had
achieved a premium for his share-
holders.
Davis and Glasenberg will be
going on a joint charm offensive to
encourage investors to vote for the
deal. Glencore, which already has a
34 per cent holding in Xstrata,
floated on the London Stock
Exchange last year.
Glencore boss fires
shot at deal critics
BY JOHN DUNNE
COMMODITIES

SHARES in BP rose almost two per

cent yesterday after the oil giant
reached a settlement with busi-
nesses and individuals affected by
the Gulf of Mexico oil spill worth
an estimated $7.8bn (4.9bn).
Some analysts said the expected
payout was less than they had fore-
cast, reduced legal uncertainty
and suggested the final settlement
with BPs biggest opponent the
US government would be much
lower than the worst case scenario.
Analysts had given a wide range
of forecasts for how much BP
would have to pay out to compen-
sate fishermen, condominium
owners and hoteliers, with many
predicting a figure of $14bn,
although BP had taken a provision
of just $6.1bn. The company has
also taken a $3.5bn provision for
expected government fines but the
maximum possible level of penalty
could be over $20bn, if BP is found
to have been grossly negligent.
Analysts also said the agreement
boosted the chances of a settle-
ment with the government.
BP faces lawsuits from the states
affected, after the blast on the
Deepwater Horizone rig that killed
11 people in April 2010.
BP shares rise after agreement over
compensation with Gulf spill victims
OIL

BUSINESS secretary Vince Cable yester-

day criticised EU plans to enforce quo-
tas across the continent to increase the
number of women on boards, saying
the UK was making the voluntary
approach work.
Justice commissioner Viviane
Reding threatened to take the matter
out of national hands yesterday, saying
that the EU was preparing to take legal
steps to get women into boardrooms
after attempts to encourage businesses
to take voluntary steps failed.
But Cable said the UKs efforts were
working. We dont think quotas are
necessary at the moment as the UK is
making the voluntary approach
work, he said yesterday.
The number of all-male boards has
halved, from 21 to 11, and 27 per cent
of new board appointments in the
FTSE 100 have been female in the last
year alone.
Reding has launched a 10-week con-
sultation into the issue, saying that
once the review is over she will begin
to consider legislative measures.
Personally, I am not a great fan of
quotas. However, I like the results they
bring, she said.
A year ago, she called for companies
across Europe to increase the number
of female board members to 30 per
cent by 2015 and 40 per cent by 2020.
The government backed Cables
stance, saying it was already working
with businesses to increase the num-
ber of women at senior levels, rather
than imposing government quotas.
And research by management con-
sulting firm McKinsey released yester-
day claimed that over 90 per cent of
Europes leading companies are now
making efforts to increase the number
of women in top jobs.
Cable: quotas for
women on boards
not needed in UK
BY ELIZABETH FOURNIER
REGULATION

ANALYSIS l BP PLC
P
23Feb 29Feb 1 Mar 2Mar 5 Mar
510
505
500
495
504.60
5 Mar
F&C values
drop despite
buyout lift
A STRONG performance from private
equity helped Foreign & Colonial
Investment Trust escape the worst of
the industry slump last year despite a
drop in value.
F&C said its private equity portfolio
rose by 13.8 per cent and cash distribu-
tions from its stake in the sector more
than doubled to 66.9m.
We reached an important mile-
stone in September when cash distri-
butions exceeded cash being invested
for the first time, chairman Simon
Fraser said.
Net asset value per share fell 6.7 per
cent to 322.86p, however, as the
Eurozone crisis, concerns over global
growth and the Japanese earthquake
and nuclear disaster took their toll.
Fraser said he expected global divi-
dend growth to be slower this year
than in 2011, adding: We do not think
there will be substantial takeover activ-
ity to support share prices.
BY PETER EDWARDS
ASSET MANAGEMENT

Business secretary Vince Cable said the EUs proposals are not yet needed in Britain
CINVEN, the private equity giant
behind Pizza Express, is transferring
its management vehicle to the tax
haven of Guernsey.
Its move to Guernsey, a tiny
island of around 60,000 peo-
ple, brings its legal structure
in line with much of the rest
of the private equity industry.
The buyout firm will also
become a limited liability part-
nership (LLP) as part of the
shake-up of its corpo-
rate structure. The
LLP will act as an
adviser in London
to Cinvens funds,
which also control
restaurants Ask and
Zizzi.
Cinven has gone
through a series of
changes since long-
standing managing
partner Robin Hall switched to the
role of executive chairman in 2009. He
was succeeded by Hugh Langmuir (pic-
tured), which insiders said created the
opportunity to move to an LLP struc-
ture, under which it is easier for
changes such as the retirement of
partners or the creation of new ones.
A source said tax was a factor in
the decision to move but added:
The LLP structure is not a way of
avoiding employer National
Insurance. The tax contribution
from the firm and its partners in
the UK is likely to go up substantial-
ly: as part of the LLP structure,
partners will now officially
be self-employed and will,
therefore, have to pay NI
themselves.
Last week Cinven and
Goldman Sachs
Capital Partners
agreed to sell
Nordic tool dis-
tributor Ahlsell to
CVC for 1.8bn.
Cinven sets
sail for haven
of Guernsey
CREDIT Suisse said yesterday it plans
to buy back up to SFr4bn (2.8bn) in
outstanding securities to help it com-
ply with the new Swiss and Basel III
global capital adequacy rules.
The tender was for public Tier 1 and
Tier 2 instruments, Credit Suisse said.
As part of the new capital rules, flag-
ship banks UBS and Credit Suisse,
whose balance sheets are several times
the size of the Swiss economy, have
begun to issue loss-absorbing forms of
capital.
The instruments include contingent
convertible bonds, or CoCos.
BY PETER EDWARDS
PRIVATE EQUITY

BANKING

News
6 CITYA.M. 6 MARCH 2012
NORDGOLD, the gold producing com-
pany spun off by the Russian group
Severstal, yesterday appointed Jefferies
Hoare Govett as its corporate broker
and financial adviser, the first broking
win for the newly-merged firm.
Peter Bacchus, global head of metals
and mining investment banking, said
that Nordgold, which is currently val-
ued at about 2bn, is a fantastic com-
pany with an exciting time ahead of
it.
Although listed in London,
Nordgold has a free float of only
around 11 per cent, with the remain-
der of the shares owned by Severstal
owner Alexei Mordashov. Nordgold
was sold off by Severstal last year.
News of the client win was revealed
as reports suggested that two senior
Jefferies employees, Chris Snoxall and
Julian Smith, left the firm last week.
Jefferies declined to comment.
Nordgold is first client to
join Jefferies HoareGovett
Peter Bacchus has got a major client win for the newly-merged firm under his belt
BY DAVID HELLIER
ADVISERS

Credit Suisse in
2.8bn buyback
A TOP fund of hedge funds manager at
HSBCs alternative investments unit
has left after the firm decided to
merge its discretionary and advisory
businesses.
Tim Gascoigne, who was global
head of portfolio management and
who ran the 1.5bn GH fund of hedge
funds at HSBC Alternative Investments
Limited, left last month, a spokes-
woman for the bank said yesterday.
Gasgoine, who joined HSBC in 1996,
managed around $4bn. His duties
have been taken on by Faraz Sultan,
who runs the advisory business.
BANKING

HSBCs hedge
fund star leaves
INSURER Amlin has posted a 194m
loss for 2011 after being hit with a
500m bill for a series of natural
catastrophes.
Yesterday the firm announced that
it had suffered a 215m loss on the
New Zealand earthquake, 137m on
the Japanese earthquake and paid out
80m for flood damage in Thailand,
amongst other claims. It had budget-
ed for catastrophe losses of just
170m.
Amlin, the largest Lloyds of
London insurer, made a profit of
259m in 2010 but last years disasters
pushed it substantially into the red.
Despite this the firm managed to
maintain its dividend at 23p and said
it expected a return to growth and
healthy profits in 2012.
Chief executive Charles Philipps,
admitted 2011 was an exceptionally
challenging year but emphasised
that the firms position as market
leaders meant it was already benefit-
ting from the upturn in trade and is
well placed to resume the delivery of
good returns for shareholders.
Amlin said renewal rates increased
by four per cent in January, compared
to reductions of 1.3 per cent the year
before.
Joy Ferneyhough, an analyst at
Execution Noble, maintained her
buy rating, explaining that with
rates moving higher and plenty of
capital to support growth Amlin are
well placed to benefit.
Shares in the company closed
down 4.5 per cent at 336p.
Amlin in red
after 500m
disaster bill
BY JAMES WATERSON
INSURANCE

News
7 CITYA.M. 6 MARCH 2012
ANALYSIS l Amlin PLC
P
23Feb 29Feb 1 Mar 2Mar 5 Mar
355
350
345
345
340
336.00
5 Mar
A SPATE of tornadoes has hit the US,
killing at least 39 people and leav-
ing the insurance industry facing
losses of several hundred million
dollars.
A thousand-mile chain of destruc-
tion reaching down to the Gulf of
Mexico has demolished homes,
damaged schools and led to deaths
in the states of Kentucky, Indiana,
Ohio and Alabama.
Catastrophe modelling company
Eqecat said that this years storm
season is already running nearly 30
per cent higher than the average of
recent years.
Last years tornadoes, one of the
seasons on record, resulted in total
insurance losses of around $7.3bn
(4.6bn).
But this years payouts are expect-
ed to be much lower as no major
cities have been severely affected.
Deadly tornadoes raise
prospect of large payouts
Tornadoes have caused chaos across the US midwest.
BY JAMES WATERSON
INSURANCE

AMERICAN International Group (AIG)

is selling more of its stake in Hong
Kong-based AIA to raise $6bn (3.8bn)
and help the firm pay back its US gov-
ernment bailout.
The insurer is looking to place
1.7bn AIA shares in a range of
HK$27.15-27.50 per share, a seven per
cent discount to Fridays price.
The shares will go to institutional
investors and AIG will use the pro-
ceeds to reduce the balance owed to
the US Treasury.
AIG was on the brink of collapse in
September 2008 when the Treasury
stepped in and initiated a $182bn
bailout which left the federal govern-
ment owning 77 per cent of company.
Since then it has initiated a series
of sales aimed at paying back this
debt, including floating two-thirds of
AIA once considered its crown jewel
asset for $20.5bn in 2010.
AIG retained a third of AIA after
the IPO but this new share sale will
see the US company reduce its inter-
est to around 19 per cent.
Deutsche Bank and Goldman Sachs
are understood to be co-ordinating
the sale.
Shares in AIG have gained 46 per
cent since early October and rose a
further 2.05 per cent to $30.41 yester-
day.
AIG selling AIA
shares to pay
US government
INSURANCE

News
10 CITYA.M. 6 MARCH 2012
London needs somebody to gamble on an IPO
W
ITH the Edwards vacuum
technology company head-
ing for a 1bn flotation in
the US and Mayfair-based
jewellery retailer Graff also prefer-
ring a Hong Kong listing to braving
the UK new issue markets, only one
thing is certain: the London IPO mar-
ket is in a pretty bad way.
Bankers that Ive been speaking to
say they know of a significant num-
ber of companies thinking of floating
in the US or Asia rather than in the
UK. Interestingly, they add that this is
not just a phenomenon at the tro-
phy end of sectors, such as luxury
goods.
At the moment there are much
better places for companies to list
than in the UK, says one banker.
For the global investment banks,
who benefit from IPOs wherever they
take place in the world, there may be
little to be concerned about.
But some UK-based bankers feel a
certain sense of patriotism about the
whole issue and would like business
to be resumed in London for a host of
reasons, not just because they have
big teams here that need to be occu-
pied.
We have a whole team of TMT
[technology, media and telecoms] ana-
lysts who spend much of their time
talking to companies about accessing
private financing in the US but
theres a need to be able to grow tech-
nology companies in the UK, says
one.
He fears that inevitably senior peo-
ple within companies gravitate
towards where the funds and
investors are, leaving limited expert-
ise in the UK.
So what can change things? Much
of the problem is due to a slew of
IPOs, such as Ocado, Promethean and
Betfair, where growth expectations
have failed to materialise, sparking
institutional scepticism and risk aver-
sion.
One big deal and the floodgates
will open. Eventually a private equity
house will agree to take a discount
and if you get that sentiment will
change, says another banker.
The law firm DLA Piper yesterday
produced a report suggesting that
bankers fees on IPOs should be tied
to the aftermarket share price rather
than the issue price, which might not
be sustainable. That might be one
way forward.
Whatever the solution, London
cannot afford for this impasse to go
on for too much longer.
Meanwhile over at Bank of America
Merrill Lynch, Simon Mackenzie-
Smith has a big job on his hands right
now. Mackenzie-Smith, a veteran of
the industry known affectionately as
SMS, finds himself needing to shore
up a recently denuded UK corporate
broking team that last week was
stunned by the departure of its head,
Mark Astaire, to the massively ambi-
tious Barclays Capital.
Friends says Astaires head was
turned not just by the size of the
package but by a sense of real
momentum at BarCap. He was
thought to have been also courted by
HSBC for what most think will be his
last big City job.
His departure comes on top of the
enforced exit of Andrew Osborne, a
good friend of Astaires, who fell foul
of the regulators on the Punch
Taverns 375m fund-raising, and also
that of Simon Fraser, who fell for the
charms of farming instead of broking
after a couple of decades in the indus-
try.
Merrill Lynch is said to be interest-
ed in making some hirings to boost
its team, which is in desperate need
of broking experience. Ed Peel, one of
its most exciting prospects, is still
learning the ropes after a career at
Nomura in equity sales. Merrill will
need loyalty and more than a little
luck to persuade its 29 FTSE 100
broking clients to stick with the firm
during what is clearly a difficult time.
david.hellier@cityam.com
INSIDE TRACK
DAVID HELLIER
News
11 CITYA.M. 6 MARCH 2012
ONLINE grocer Ocado said the indus-
try competition in Britain is the tough-
est in the world as it reassured its
battered investors with a jump in first-
quarter sales.
The firm, which has seen its share
price halve over the last year, posted a
10.9 per cent rise in gross sales to
162.1m but chief financial officer
Andrew Bracey warned the firm faces
a lengthy fight to win customers.
I dont think the competitive envi-
ronment in UK grocery has ever been
as tough as it is Its the toughest gro-
cery market on the planet, and we
dont expect that to change, but were
happy operating in it.
Tim Steiner, chief executive, said
Ocado had largely overcome the
problems in boosting capacity at its
Hatfield distribution centre.
Ocado, set up in 2000 by three for-
mer Goldman Sachs bankers, mostly
sells Waitrose products. Average
orders per week increased 13.4 per
cent to 116,987 in the 12 weeks to 19
February but the size of the average
spend fell 2.2 per cent to 115.49.
Store wars
fail to dent
Ocado sales
THE head of Tescos British business
defended the chains pledge of 20,000
new jobs yesterday, following analysts
claims that supermarkets inflate their
figures.
Richard Brasher said the hiring plan
represented real net new jobs after
the retailer, Britains largest, said it
could not yet give figures for the split
of full and part-time positions. More
details are expected when its results
are published in April.
On the same day, Tesco made a
show of faith in the Asian markets,
pricing the initial public offering of its
property fund at the top of expecta-
tions. The British retailer will raise
about 18.4bn Thai baht (378.9m) in
the continents second-largest IPO of
the year.
In the UK, Tesco announced it
would add 10,000 new and existing
staff to its apprenticeship scheme,
open new outlets and make a signifi-
cant investment in customer service.
David Cameron said the recruit-
ment drive is a a massive confidence
boost for the UK economy.
Tesco launched the fightback after
stunning the City in January with its
first profit warning in 20 years. It will
improve its offers of fresh produce,
fresh meat, bakery and counter servic-
es and open an unspecified number of
new stores.
Analysts at Nomura predicted the
changes would cost 300m but Tesco
described that as speculative.
Independent retail analyst Nick
Bubb said: The fact is that Tesco has
let its stores lag its rivals and it is now
playing catch-up.
Meanwhile, the firms Thai IPO saw
strong demand with 10,000 retail
investors taking part. The deal, at 10.4
baht per unit, is the largest in
Thailand for nearly six years and is
equivalent to a yield of 6.5 per cent a
year.
It will be closely watched in the
West as investors look for signs of
greater stability in the Far East, fol-
lowing last years floods and market
turbulence. It will also be scrutinised
by Tescos global rivals as retailers are
trying to squeeze more value from
their property assets by bundling
supermarkets and shopping malls
into a fund.
The Tesco Lotus fund is made up of
17 shopping malls anchored by a
Tesco Lotus hypermarket in cities
including Bangkok and tourist desti-
nations such as Krabi and Koh Samui.
Tesco has said it plans to use proceeds
of the IPO to fund future expansion
in Thailand.
The IPO, Thailands biggest since
Rayong Refinerys $710m offering in
May 2006, received about $40m in
commitments from Capital Research
and Management, a unit of US fund
manager The Capital Group
Companies. The largest fundraising
for Asia so far this year was the
$794m listing in Shanghai by China
Communications Construction last
month.
Tesco defends pledge of 20,000 new jobs as it
pursues Eastern dreams with property fund float
BY PETER EDWARDS
RETAIL

RETAIL

NEWS | IN BRIEF
Regulator probes KPMG audit
The Accountancy and Actuarial Discipline
Board has begun probes into KPMG's
auditing of Lloyd's of London car and
motorcycles insurer Equity Red Star and
actuaries who advised it. In 2010 the
firm, a UK subsidiary of Insurance
Australia Group that insures one in four
motorcycles on UK roads, crashed to a
240m loss after failing to set aside
enough cash to cover claims. The regulator
is now investigating KPMGs auditing of
Equity Red Star for the three years to
December 2009 "with particular refer-
ence to technical provisions".
Top brands pay best dividend
Trusted brands known and used in every
household in the UK were among some of
the most consistent, dividend yielding
stocks over the past year, according to
research by Indixs. The UK Dividend
Achievers Index listed the most consistent
dividend paying stocks and found that
consumer brands such as SABMiller,
Diageo, Unilever, British American
Tobacco and Tesco were all in the top 10.
Hydrogen profits up 48 per cent
Pre-tax profits at recruitment group
Hydrogen grew by 48 per cent to 3.7m
in 2011, driven by its global markets.
Chief exec Tim Smeaton said the compa-
ny had made the most of an interesting
and challenging environment, increas-
ing headcount by 10 per cent over the
year and focusing almost half of its sales
staff on international markets.
ANALYST VIEWS: SHOULD INVESTORS DO
THEIR SHOPPING AT OCADO ? By Peter Edwards

ANDREW WADE | NUMIS

Ocado has posted a solid first quarter, with sales growth of +10.9 per
cent, marginally ahead of guidance Improvements over the last quarter (and the
quarter to come) will enable the business to reaccelerate sales growth.

Some analysts say Ocado has solved its bottlenecks Picture: GETTY

PHILIP DORGAN | PANMURE GORDON

We expect that the competitive environment will get tougher and that
Ocado will struggle to demonstrate operational leverage... We believe that Ocado
will continue to struggle to make money. We dont buy the bull argument.

JAMES GRZINIC | JEFFERIES

Bottlenecks now solved... the group is set to be truly capacity uncon-
strained for the first time in its history and the wider competitive context may
become a new area of focus.

ANALYSIS l Ocado Group PLC

p
28Feb 29Feb 1 Mar 2Mar 5Mar
110.0
107.5
105.0
102.5
100.0
97.5
95.0
92.5
103.80
5 Mar
THE UK is likely to avoid a new reces-
sion according to figures published
yesterday, which show a third consec-
utive month of growth in the services
sector.
Markits purchasing managers
index (PMI) came in at 53.8 for
February slower than the 56 seen in
January, but still firmly above the no-
change level of 50.
The growth figures come after
manufacturing and construction sec-
tor PMIs last week which showed both
sectors growing though manufac-
turing, like services, slowed slightly.
Februarys expansion was accom-
panied by a modest rise in employ-
ment of roughly 30,000 jobs, and
increasing confidence for the rest of
the year.
New work expanded for the four-
teenth consecutive month, though
firms remain under competitive pres-
sure to keep output prices low in spite
of rising input costs.
It is encouraging that the services
PMI indicated another month of solid
growth in activity, and the strength
of the orders pipeline also suggests
that output may continue growing in
the coming months, said Nida Ali
from the Ernst and Young Item Club.
However, underlying demand is
still fragile and companies are having
to accept lower margins in order to
secure business.
The services sector still faces a
challenging environment and we are
seeing a slow grind towards recovery.
The gradual nature of this recovery
is expected to have a bearing on mon-
etary policy.
The Bank of Englands monetary
policy committee (MPC) meets to
make the months decision on inter-
est rates and quantitative easing this
week, and is known to take PMI data
into consideration.
In our view, the MPCs growth
forecasts probably relied too much on
the rise in the January PMIs, said Citi
economist Ann OKelly.
First, the PMIs have fallen back a
bit. Second, the link between the
PMIs and real GDP growth is quite
variable.
Services see
third month
of expansion
Keeping London on the move
Fly to
Belfast City from
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way

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BY TIM WALLACE
UK ECONOMY

MOST accountants would support a

general tax amnesty, allowing tax
dodgers to declare income to the gov-
ernment in exchange for a lower
penalty, according to a survey pub-
lished today by audit, tax and advisory
firm Crowe Clark Whitehill.
Previous amnesties have allowed UK
individuals with bank accounts, trusts
or companies in Switzerland to pre-
serve their anonymity in exchange for
paying a one-off levy of between 19
and 34 per cent of the balance, and a
withholding tax on future income.
Alternatively, those affected can avoid
the charges if they pay all taxes due.
Over three-quarters of accountants
surveyed claimed they would tell large
numbers of clients about a general ver-
sion of a similar amnesty. The most
important factor cited as key to its suc-
cess is immunity from prosecution.
Accountants claim they would
support a tax-dodgers amnesty
POLITICS

PLANS to remove child benefit from

higher-rate taxpayers could be
changed to avoid distorting the
incentive to work, Deputy Prime
Minister Nick Clegg (pictured) said
yesterday.
Under current plans, families with
one parent earning above the
42,475 threshold will lose child
benefit.
That creates a cliff-edge, where a
parent just below the threshold will
actually lose money if their pay
increases.
Clegg said he will look at ways to
avoid that high marginal tax rate,
but maintained it is right that high
earners should not receive benefits.
Fellow cabinet minister Ken
Clarke backed the Deputy PM,
stressing the government is not
performing a U-turn on the
issue.
One possible change would
be to raise the threshold to
50,000 or more.
The planned
changes also have the
unintended conse-
quence that a family
with two working par-
ents each earning
40,000 will keep the
payments despite a com-
bined income of
80,000, when a family
with one working par-
ent earning 43,000
would not.
Clegg hints the government
will ease child benefit plans
BY TIM WALLACE
UK ECONOMY

News
12 CITYA.M. 6 MARCH 2012
BANKS TUCKER LANDS TOP SECURITIES ROLE
Paul Tucker, a Bank of England deputy governor, was appointed yesterday to head a
global rulemaking body for securities clearing, a sector at the heart of post-financial cri-
sis reform. He replaces the Feds William Dudley as chairman of the Committee on
Payment and Settlement Systems, made up of central bankers from G20 countries. The
committee is working to tighten rules for clearing house operators such as LCH.Clearnet.
ANALYSIS l UK Services PMI
UK Services PMI
Jan
2006
Jan
2007
Jan
2008
Jan
2009
Jan
2010
Jan
2011
Jan
2012
66
62
58
54
50
46
42
38
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AMERICAN politicians have urged the
US futures regulator to crack down on
excessive speculation in oil markets as
fuel prices hit record highs around the
world.
The price of petrol has hit a fresh
record in the UK, edging up 0.1p to
137.55p, while diesel was flat at
144.66p.
In the US, prices have jumped near-
ly 30 cents over the past month and
now average $3.77 a gallon, according
to the American Automobile
Association, creating a political flash-
point as the presidential election cam-
paigns heat up.
The US Commodity Futures Trading
Commission should stop dragging its
feet on implementing new regula-
tions to stop Wall Street from domi-
nating the oil market, 23 Democratic
senators and 45 members of the House
of Representatives said in a letter to
the CFTC.
The lawmakers complained that
gasoline prices are soaring, despite
plenty of supply and low demand.
However, some analysts say there is
little evidence of excessive speculation
in oil markets and that prices are mov-
ing over concerns in the Middle East
and strong demand from developing
countries such as China and India.
US politicians urge action
over record petrol prices
BY HARRY BANKS
WORLD ECONOMY

News
13 CITYA.M. 6 MARCH 2012
www.RateSetter.com Customer Phoneline: 08442490115
In association with RateSetter: A better way to Save and Borrow, Peer to Peer
* These views are those of the individuals below and not necessarily those of their company
CITY VIEWS: DO YOU THINK THE CHINESE ECONOMY IS
IN TROUBLE?
I dont think there is anything to worry about.
The resources China has and the way it has been
operating for the past 25 years will always get
it back on top.
NICO BAINS | ERNST AND YOUNG
I work in commodities and there is no way its econ-
omy is slowing down. Everything in China is bullish;
the underlying demand and supply gap all point
towards huge growth!
Not at all, I think the fundamentals are
intact so whatever drops we are seeing
are only temporary. It is such a strong
economy and will ultimately rebound.
ISAAC AYODELE | LNG
PAUL FRENCH | GLOBAL SAGE
SERVICES activity in the US grew at a
12-month high in February accord-
ing to figures from the Institute for
Supply Management (ISM), pub-
lished yesterday.
The index rose to 57.3 from 56.8,
led by increasing new orders and
business activity, though employ-
ment growth slowed slightly.
The expansion represents the 26th
consecutive month of services
growth, and economists believe it is
consistent with private sector
employment rising by 200,000 per
month though other indicators
forecast a lower rise.
ECONOMIC activity fell in the
Eurozone in February, paving the way
for a renewed recession across the cur-
rency area, new data showed yester-
day.
However, retail sales expanded
slightly in January, particularly in east-
ern European members of the EU.
Services activity fell in February,
according to purchasing managers
index (PMI) data from Markit, counter-
ing modest manufacturing growth
and dragging the Eurozone into con-
traction.
The overall PMI figure came in at
49.3, below the no change mark of 50
and down on the 50.3 level registered
in January.
Germany and Ireland expanded
with PMIs of 53.2 and 52.3 respectively,
while French output barely grew at
50.2 and Italy and Spain contracted
sharply with PMIs of 44.7 and 42.9.
Meanwhile retail sales rose 0.3 per
cent in January in the Eurozone and
0.4 per cent across the 27 EU members.
Latvia and Slovenia led the growth
with expansion of 6.4 per cent and 5.5
per cent respectively, while Germany
and Portugals declines of 1.6 per cent
and 2.7 per cent put them among the
worst performers for retail sales.
The trend data is far weaker, with a
0.8 per cent decline in the three
months to January compared with the
previous three-month period, match-
ing the weakest performance since
Spring 2009.
Economists warned Januarys rise in
sales is not expected to last.
Rising unemployment, tighter fis-
cal policy, subdued consumer senti-
ment, a squeeze on real incomes from
higher commodity prices and high lev-
els of uncertainty provide a combina-
tion of factors suppressing consumer
spending at the Eurozone aggregate
level, said BNP Paribas Ken Wattret.
Eurozone slips
back towards
contraction
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EUROPEAN governments should use
the current period of calm on finan-
cial markets to further economic
reforms, a top European Central Bank
(ECB) official said yesterday.
Jose Manuel Gonzalez-Paramo told
an audience in Spain that the current
stability will not last if it serves as a
pretext for national governments to
relax their efforts.
They should redouble their efforts
and deepen the reforms needed in
labour markets and budgets, he said,
arguing that the ECBs intervention
can only give breathing space to make
reforms, rather than solve the crisis.
Europe urged to
keep up reforms
US recovery is
looking healthy
BY TIM WALLACE
EUROZONE

US ECONOMY

EUROZONE

DEPOSITS of cash stored at the

European Central Bank (ECB) have hit
a new record of 820.82bn (683bn) fol-
lowing the Banks massive injection of
liquidity last week.
The new record high will stoke fears
that the new long-term money being
loaned to banks as an emergency
measure is simply being hoarded
rather than loaned on to businesses to
foster growth in the real economy. The
ECB pumped 530bn into 800 banks
last week, taking the total value of its
three-year loans to over 1 trillion.
The ECB deposit data does not, on
its own, give a firm indication of
whether banks are lending the money
on to others. Instead it reflects an
expansion of the money supply. But
anecdotally, many bankers say that
the new cash is not moving around
enough to stimulate growth.
Cash stored at ECB
hits a new record
EUROZONE

News
14 CITYA.M. 6 MARCH 2012
ECONOMISTS: BREAK UP EURO TO SAVE MONEY
EFFORTS to hold
the Eurozone
together will cost
the healthier coun-
tries at least 1.3
trillion (1.08 tril-
lion) by 2015,
research from
Lombard Street
Research claimed
yesterday, arguing
efforts by leaders
like Italys Mario
Monti will end up
being far more
expensive than
splitting up the
currency union.
Picture: GETTY
ANALYSIS l PMI Output/Business Activity
PMI
99 00 01 02 03 04 05 06 07 08 09 10 11 12
65
60
55
50
45
40
35
30
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The childhood dream is to sit in the
cockpit of an aeroplane; the corporate
dream is to own one.
And now you can do both. The
worlds first corporate aviation show-
room, The Jet Business, has just
opened on your doorstep, based in one
of Londons greenest areas (and we
mean dollars, not just Hyde Park).
The One Grosvenor Place store has
cockpits for desks and a reception
room decked out like the inside of an
Airbus A319, while floor-to-ceiling elec-
tronic screens allow the buyer to
explore a jets features on a 1:1 scale, as
no planes are kept on the premises
(congestion charge, probably).
Jet Business creator Steve Varsano
confirmed to The Capitalist that a hand-
ful of sales are already underway at
the two-month old shop, but unfortu-
nately we cant divulge which celebs
dished the dosh, as the jumbo busi-
nessman keeps his little black book
close to his chest. We couldnt even
peek over his shoulder as Varsano was
in Beijing when he spoke to us we
think he went on a test drive.
The showroom which attracts for-
eign royalty, oligarchs and corporate
execs even has windows that turn
opaque at the touch of a button and a
private car park for celebrities who
dont want to be spotted leaving with a
jet-shaped carrier bag.
As is generally the way with aircraft,
The Jet Business is planning to go over-
seas. Varsano said the business could
take off in Hong Kong or New York
before the year is out.
So scurry down to the London show-
room if you want to get your hands on
a $9m to $30m corporate plane before
they fly away or if you want to sit in a
mocked-up cockpit and play pilot.
JET SHOWROOM LANDS IN LONDON
15
The Capitalist
CITYA.M. 6 MARCH 2012
Got A Story? Email
thecapitalist@cityam.com
Morning all. Well done to the lucky person who
guessed that Barnabus was at The London Eye.
To win a pair of VIP tickets to The Gaucho
International Polo on 21 March at The O2
(www.gauchopolo.com), a unique event which will
bring an Argentine festival to London, uniting high-
octane polo interspersed with music from one of Latin
Americas most acclaimed bands, Bajafondo, a tasting
of the country's finest wines and a glamorous after-
part, guess which iconic London landmark smallest
polo pony in the world, Barnabus, will visit tomorrow.
Here is today's clue: Here Barnabus will really feel like
he is walking tall so where's Barnabus?
To enter please let us know where you think he
is via the Gaucho Polo Twitter site @GauchoPolo
Jet-setting shoppers can peruse the latest planes from the comfort of a mocked-up cockpit
Its going to be a
Interview
16
W
HEN Boris Johnson took
the Mayoralty from Ken
Livingstone in 2008, many
observers thought a repeat
victory in 2012 was a foregone con-
clusion. If recent polls are anything
to go by, that most certainly isnt the
case: with just two months to go, the
race is too close to call. The polls are
very close and its going to be a very
tough fight, concedes Johnson
when we interview him in his office
at City Hall.
The Boris we meet is serious
Boris. Dressed in a sombre navy suit
and tie, he spends the entire inter-
view peering over a lever-arch file
stuffed full of papers and notes; his
trade-mark bumbling Borisisms are
in short supply. As always, the image
has been carefully cultivated even if
it appears accidental. When our pho-
tographer asks to take a picture of
him standing against his book-
shelves, he frets about what the
weighty tomes might say about his
character. He suggests he stands in
front of a giant map of London
instead.
There is a sense both in the
Conservative party and the public at
large that his first term has been
something of a missed opportunity.
He lists his main achievements as
reduced crime, Tube upgrades, Boris
bikes, the end of the bendy bus and
Oyster on the overground. All those
things were actually difficult to
deliver and they could easily have
been jettisoned, he says. Maybe so,
but it is hardly the radical agenda
that many hoped he would pursue.
Johnson admits as much and
claims a second term would be more
ambitious, with a genuine attempt
to break the power of the transport
unions by using driverless trains on
the underground. I think youve
got to be clear that, when I was elect-
ed, I was not known primarily for
being a municipal politician, but I
think since then that has changed. I
feel like someone whos built half
the bridge. Theres a huge amount to
be done.
When asked who they prefer,
most Londoners pick Johnson over
Livingstone. But when asked who
they think achieved more, they
plump for Ken, partly because he
had eight years rather than four, but
also because he shaped the office of
Mayor and gave it national promi-
nence. Those words, by the way, are
taken from Johnsons incredibly gra-
cious 2008 victory speech. They
could end up haunting him.
He isnt feeling quite so charitable
to his opponent these days. He por-
trays his Livingstones administra-
tion as wildly left-wing and
dangerously profligate, a 1970s-
style-approach where money was
exploding out of every orifice and
being fire-hosed at all sorts of use-
less projects. Since the Tories took
over, he says, economies have been
made and the money has been put
where it needed to go. He claims,
for example, that London is much
safer than under Livingstone: The
murder rate, which you cant fudge
you know modern forensics make
it very difficult to dispose of a corpse
is down by a quarter.
Johnson also warns that the
return of Livingstone, who recently
claimed he would hang a banker a
week until the others improve,
would destroy Londons reputation
as an international business hub.
The idea that you drive growth in
London by offering to hang one of
them a week seems to me to be com-
pletely mad. There is a risk of a kind
of hostility towards wealth creation
that can do long-term damage.
The race is so close because
Livingstone has pledged to cut TfL
fares by seven per cent, a move that
will save commuters a significant
amount of cash. But Johnson is
scathing of the policy, saying there
are only three ways of paying for it
a new tax or congestion charge,
sharp cuts to services and invest-
ment, or higher fares in the longer-
term. Thats the single most likely
thing. Hell go on for a year or so and
suddenly declare hes bankrupt and
say fares have got to go up by RPI
plus 38 per cent or whatever. Or else
the government will bail them out.
Boris Johnson tells
Allister Heath and
David Crowthat he
will be more radical
if he wins a second
term at City Hall
Livingstone ran a 1970s-style administration.
Money was exploding out of every orifice and
being fire-hosed at all sorts of useless projects
Boris Johnson in a sombre suit and tie in his office at City Hall
very tough fight
Interview
17
Indeed Boris dismisses Kens
entire manifesto as Wonga econom-
ics, in reference to the much-derid-
ed pay-day loan company. He says
pledges such as reinstating the edu-
cational maintenance allowance for
poorer sixth-formers or unwinding
changes to housing benefits both
Westminster policies, not Boris ones
are either unaffordable or impossi-
ble to fulfil. All youre really saying
to people is, you know, Ill see you
right for eighteen months or a year
or so.
Since entering City Hall, Boris has
been unafraid to play hardball with
the chancellor when it comes to
securing funding for London. Word
has it he even threatened to pen an
anti-Europe column on the eve of
the Tory party conference to secure
money for Crossrail. I hope
Londoners want someone who will
get finance from government to
deliver the big investments.
That leverage would be lost under
Livingstone, Johnson claims, to be
replaced by an acrimonious relation-
ship that would prove fatal for
Londoners. He says there is a risk
that Ken will use his perch in City
Hall to oppose the government at a
national level.
That was certainly what hap-
pened in the 1980s when you saw an
approach that was ludicrously con-
frontational and adversarial, he
says, in reference to Kens days as a
firebrand leader of the Greater
London Council (which was subse-
quently abolished by Margaret
Thatcher). For his part, Johnson says
he will not be needlessly adversari-
al even when it comes to Bob
Crow and the RMT.
Johnson ends the interview on a
high note, arguing that London
has an amazing future. He singles
out growing investment in IT and
high-tech stuff as a sign of great
things to come. You know Dave
and co all go on about Tech City,
actually theyre not wrong its not
just politicians babbling away
about the latest fashion. This is a
city where huge numbers of compa-
nies are setting up to pursue these
apps and what have you, which I
can barely understand. I can under-
stand the economic benefit that
they bring even if Im not myself a
great consumer of Moshi Monsters
or whatever the hell it is. His
technophobia is one trait that isnt
put on for show. Although he says
he loves iPads, his mobile phone
an old-fashioned Nokia belongs in
a museum.
It is rather fitting that Boris seems
so uncomfortable with technology,
because this contest is distinctly old-
fashioned. Two larger-than-life pros
fighting hand-to-hand in an election
they cannot afford to lose. When we
ask the Mayor if he thinks
Livingstone will cut fares, he stum-
bles before giving a telling answer. I
dont think Well, I dont think hell
get elected. That is my hope. Its
going to take more than hope to win
this battle and he knows it.
P
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e
s
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a

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a
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/
C
I
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JUST OVER a year after stepping down
as chief executive of Dunelm, Will
Adderley, along with his wife Nadine,
got rid of a 3.7 per cent stake in the
soft furnishings family business.
But Will, the son of the companys
founder, insists he remains fully com-
mitted to Dunelm, is staying on as
executive deputy chairman of the firm
and will still hold 31.2 per cent of the
issued shares.
Will and Nadine Adderley have put
the disposal down to a wish to
achieve greater portfolio diversifica-
tion, and have promised not to sell
any more Dunelm shares for at least
six months.
The announcement cut the compa-
nys share price by five per cent to
482.5p. The Adderleys placed 7.5m
shares with institutional investors at
Dunelm stock plunges as
ex-chief sells 7.5m shares
Will Adderley sold off some Dunelm shares
News
18 CITYA.M. 6 MARCH 2012
BY LAUREN DAVIDSON
RETAIL

480p each, with UBS acting as

bookrunner and Oriel as co-lead man-
ager.
Will Adderley was gifted 20m ordi-
nary shares from his father, Dunelm
founder Bill Adderley, in December
2010.
Panmure Gordon analyst Jean
Roche notes that out of a total 70.5m
shares in issue this is a small propor-
tion, and expects to see further sales.
Despite the additional free float, the
Adderley family will still own a 56.2
per cent stake in the bedding and cur-
tains retailer.
Craig Calvert, managing director at
UBS, advised on the placement of
7.5m shares, which were put up for
sale by Dunelms executive deputy
chairman Will Adderley and his wife
Nadine.
Educated in the law faculty at
Cambridge University, Calvert
worked at Freshfields Bruckhaus
Deringer for two years before joining
UBSs broking and advisory team in
2000.
He has worked on a variety of mid-
cap UK deals across multiple sectors,
including Dunelms IPO in 2006 and
the sale of Northern Foods to
Boparan last year.
Oriel Securities is acting as co-lead
manager on the deal, fronted by
Nicholas How.
How counts PwC, Hoare Govett
and Dresdner Kleinwort among his
former employers, and was head of
UK corporate finance at Kaupthing
Singer & Friedlander before moving
to Singer Capital Markets as a part-
ner in 2009.
He has been at Oriel for almost
two years.
ADVISERS: DUNELM
UBS
CRAIG
CALVERT
ANALYSIS l Dunelm Group PLC
P
23Feb 29Feb 1 Mar 2Mar 5Mar
520
510
500
490
480
482.80
5 Mar
TOMORROWS Apple announcement
could bring more bad news for the
desktop computer market, with the
Cuperti no- based
c o mp a ny
expected to
reveal the
third genera-
tion iPad and
trigger a
tablet shop-
ping frenzy.
When the
iPad 2 was
launched this
time last year,
online market-
place eBay sold
5,000 more tablets
in March than in
February as iPad-
hungry shoppers
took to the internet.
EBay spotted a
similar surge after
Amazons Kindle Fire
hit the market late last year, leading
the shopping website to sell 22,000
more tablet devices in November than
in October, although the figures were
also bolstered by the usual pre-
Christmas gift boom.
Overall, tablet and e-reader sales on
eBay.co.uk increased by a staggering
443 per cent last year, while demand
for more conventional desktop person-
al computers dropped by 35 per cent.
Research firm Gartner
spotted this trend too,
noting last month that
PC shipments to the UK
dropped by 19.6 per cent
in the fourth quarter of
2011, marking the fifth
consecutive quarterly
decline as economic
headwinds and the
rapid rise of tablets
and e-readers took
their tolls on the PC
industry.
Apple is known
for the block-cir-
cling queues its
new products
whip up, and
with the expect-
ed launch of the
latest generation
iPad tomorrow more cus-
tomers could be attracted to the online
marketplace.
EBay sells an item per second on its
app while its website attracts 17m
unique monthly visitors. The internet
company, which started out as an
online auction house, now sells 61 per
cent of its items at a fixed price rather
than via competitive bidding.
Tablet sales
cannibalising
desktop PCs
BY LAUREN DAVIDSON
TECHNOLOGY

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ONLINE sales drastically boosted
Paddy Power last year, leading the
Irish gaming company to report a
16 per cent rise in pre-tax profits to
121.2m (101m), with adjusted
earnings per share up 26 per cent,
better than the 15-20 per cent
growth forecast in November.
Global online operating profit
reached 97.1m for Paddy Power, a
26 per cent rise on 2010, boosted by
a 50 per cent increase in active
online customers in the UK.
Online now accounts for 81 per
cent of the groups 119.5m operat-
ing profit, up from 74 per cent.
Chief financial officer Jack
Massey told City A.M. that the com-
pany has mobile to thank for its
record year, despite the lack of a
major sporting tournament.
Mobile is the firms key growth
area, which attracts half of
Paddys online users and where net
revenue grew 299 per cent to
43m.
The Irish bookmaker, known for
its controversial advertising, also
has plans to expand to Italy with an
initial investment of around 6m.
Massey said: Italy is the biggest
market in Europe for betting and
gaming but quite small online if
around nine per cent of the global
gambling market is online, less
than six per cent of Italys gam-
bling activity is online.
The UK is way ahead of the mar-
ket over 20 per cent of its gam-
bling is online, he added.
Paddy Power will open its Italian
doors in May, ahead of the Euro
football championships that are
expected to be a significant rev-
enue booster this year.
The gambling group took the
opportunity to speak out against
Mary Portas high street review,
which would see betting shops
classed separately from other
stores, saying it would hamper
competition and job creation with-
out a proper body of evidence.
Paddy Power bets on Italy as online
gambling leads to record fiscal year
BY LAUREN DAVIDSON
GAMING

Paris is now
the priciest
place to rent
PARIS has leapfrogged London to
become the most expensive capital
city to rent residential property,
according to research released today
by estate agent Savills.
The World Class Cities index, which
analyses the cost of renting and buy-
ing in the worlds top 10 cities, shows
the average cost of renting increased
by 2.3 per cent in the second half of
2011, outpacing the rise in underlying
house prices.
Rental growth in the so-called new
world cities of Hong Kong, Shanghai,
Singapore, Mumbai and Moscow
slowed in the second half of the year
to 1.8 per cent despite growing faster
than old world cities since 2005.
Meanwhile the so-called old world
cities London, Paris, New York,
Sydney and Tokyo saw rental growth
rise by 2.8 per cent in the second half.
A key driver of rents across all of
our cities is corporate demand which
can have a short term perspective.
Uncertainty surrounding the global
economy and job security is leading
more corporate employees, who
might previously have bought, to
rent, Yolande Barnes, head of Savills
residential research said.
Rents in Paris are now three times
higher than those in Shanghai and
Mumbai, the worlds cheapest capitals
in which to rent, with London slip-
ping into second place behind Paris.
The index also reveals it takes more
than a year of renting to cover the
costs of buying in London.
BY KASMIRA JEFFORD
PROPERTY

CONRAN TO CREATE TUSCAN RESORT

SIR Terence Conran has been signed up to transform a hilltop village in Tuscany into a
100m (83m) luxury resort. An existing hotel on the Il Ciocco estate is being refurbished as
the Renaissance Tuscany Il Ciocco Resort & Spa, which will stand among a community of
around 100 new houses. Estate agency Knight Frank is advising on the investment potential.
NEWS | IN BRIEF
ITV renews deal with Scotland
ITV has agreed to sell its Channel 3
programming schedule to Scottish
broadcaster STV and Northern Irish
network UTV for a fixed income
regardless of how many shows they
broadcast rather than a revenue pro-
portion in a deal that sees ITV retain
control of the rights to its shows.
Although the move is waiting for
Ofcoms approval, STV will pay the
Downton Abbey broadcaster 10.8m
for the partnership and will not have
to pay extra for programming costs.
Aegis expands in China
Aegis has turned to China to increase
its expanding investment portfolio.
The FTSE 250 group said yesterday
that it has agreed to add Chinese
digital agency Beijing eLink
Advertising to its digital arm Isobar
for an undisclosed sum. Founded in
2007, eLinks gross assets at the
close of 2011 were 3m. It counts
blue-chip companies China Mobile
Communications and Industrial and
Commercial Bank of China among its
clients.
Tepco investors launch lawsuit
Shareholders of Tokyo Electric Power
Co, operator of the crippled Fukushima
nuclear plant in northeast Japan, are
suing the utility's executives for a
record 5.5 trillion yen (42.5bn) in
compensation, lawyers said. In the
biggest claim of its kind in Japan, 42
shareholders filed a lawsuit accusing
27 current and former Tepco directors
of ignoring multiple warnings of a pos-
sible tsunami and of failing to prepare
for a severe accident, lawyers for the
shareholders said in a statement.
News
19 CITYA.M. 6 MARCH 2012
FTSE 100 testing firm Intertek said a
robust commodities market and
improving consumer goods division
had left it confident of strong growth
in 2012, after full-year profit surged
23 per cent.
The company, which tests products
from toys to oil to renewable technol-
ogy, said 2011 adjusted pre-tax profit
was 260.1m, comfortably above a
company provided consensus of
249m.
Revenue, significantly boosted by
last Aprils 450m acquisition of
Moody International, grew 27 per
cent to almost 1.75bn.
Petrofac sees
profits surge
by a quarter
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MINER EMED yesterday sealed a
$175m (110m) funding package from
Goldman Sachs to help it restart work
on the Rio Tinto copper mine in
Spain.
EMED will deliver the equivalent
value of copper once the Rio Tinto
mine is fully operational, it said in a
statement.
At current levels, this would mean
Goldman gets 15 per cent of all cop-
per produced at the mine.
EMED also recently got funding
from Chinese funded smelter group
XGC in return for a stake in the
mines copper.
EMED in deal
with Goldman
Intertek eyes
2012 growth
MANUFACTURING

MINING

Rio Tinto to pump $2bn into

iron ore expansion in India
Rio Tinto head of iron ore Sam Walsh is overseeing the expansion Picture: GETTY
News
20 CITYA.M. 6 MARCH 2012
ANALYSIS l Petrofac Ltd
P
23Feb 29Feb 1 Mar 2Mar 5Mar
1,610
1,600
1,590
1,580
1,570
1,595.00
5 Mar
RIO Tinto plans to invest $2bn
(1.2bn) in an iron ore project in the
Indian state of Orissa making it
the largest Australian investor in
the country.
Sam Walsh, head of the miners
Australia-based iron ore division,
said: It is a $2bn project. We expect
to ramp up quickly to 15m tonnes
per year.
Total foreign direct investment
(FDI) from Australia between April
2000 to December 2011 stood at
$486.5m, just 0.3 per cent of the
countrys total FDI flows, according
to trade ministry data.
The large investment will allow
Rio Tinto to supply Indian and over-
seas clients.
Indias mining companies have
found it difficult to expand to keep
pace with rising demand, hampered
by opposition from displaced locals,
stringent environmental rules and a
slow process for getting approvals.
We will bring the technology
and environment safety system and
we will obviously be using the local
people in the project, said Walsh,
when asked if he was confident of
the project considering the various
regulatory issues in the sector in
India.
The countrys top court had
banned iron ore mining in
Karnataka citing environmental
degradation and illegal mining.
MINING

BRITISH oil services firm Petrofac said

it was confident it would win new
contracts this year, a must to put it on
track to meet its growth targets, after
it posted a forecast-beating 25 per cent
jump in profit in 2011.
Petrofac said it was seeing a strong
pipeline of opportunities across both
parts of its business designing and
building oil and gas infrastructure, as
well as investing alongside oil firms in
oil fields.
The firm shrugged off the impact of
what it called significant competi-
tion in its key Middle East and North
African markets.
Petrofac said it expected profit to
grow by at least 15 per cent this year,
putting it on track to meet its goal of
more than doubling 2010 earnings by
2015.
The confidence in Petrofacs near
term earnings growth relies increas-
ingly on strong order intake in the
first half of 2012, JP Morgan analysts
said.
Chief financial officer Tim Weller
said: Were seeing a lot of activity
during January this year.
We had a very high number of
requests for our capabilities in terms
of the early stages of contracting
processes.
There is a lot going on in our core
markets in terms of new customer
investment, he added. Weller said
orders were looking strong for 2012.
But analysts at Oriel Securities said
the lack of recent contract awards
raised concerns about the company's
ability to meet its forecasts.
We estimate that to underpin our
2013 estimated revenue Petrofac
needs to win $8bn of new contracts by
the end of 2012. This is starting to
look challenging when compared to
the $2.1bn of contracts won in 2011.
they said.
BY HARRY BANKS
ENGINEERING

BRITISH Airways parent IAG has

come a step closer to buying loss-
making carrier BMI, after the UK
consumer watchdog said it will not
review the proposed deal.
The Office of Fair Trading said
there was no need for a fresh investi-
gation, given that the European
Commission is already looking into
the acquisition, worth up to
172.5m.
The EC, which is working with the
OFT on its probe, has until 16 March
to make its decision. Last month it
received an official complaint about
the deal from rival Virgin Atlantic.
BRITISH biotech company Abcam said
yesterday it would buy US peer
Epitomics International for $155m
(97.7m) to boost its antibody technol-
ogy, sending its shares up more than
eight per cent.
San Francisco, California-based
Epitomics, develops and distributes
rabbit antibodies for research and
diagnostic applications. It had revenue
of $24.7m in 2011.
Abcams products cover research
areas such as cancer, cardiovascular,
immunology, neuroscience, and stem
cells.
The British firm said it has put in
place a new 20m credit facility to
fund the acquisition.
It would issue about 14.5m new
shares as part of the deal, which is
expected to take up to two months to
complete.
Abcam said the cash-and-stock deal
would be neutral to its earnings in the
first year, but would add to profit from
the second year of completion.
Broker Numis advised on the deal,
with James Black, Michael Meade and
Nick Westlake working to steer an
agreement through.
The Cambridge-based company also
reported first-half pre-tax profit of
17.6m, up 16 per cent from last year.
Sales jumped 14 per cent to 44.7m
It increased its interim dividend by
16.6 per cent to 1.69p a share.
The idea for Abcam came early in
1998 out of a laboratory in Cambridge
University.
The company was formed after cur-
rent chief executive Jonathan Milner,
an academic, formed a partnership
with telecoms entrepreneur Dr David
Cleevely. Milner re-mortgaged his
house to get the company off the start-
ing blocks.
Abcam soars
on 98m US
investment
A DOUBLING in corporate profits
since 2009 means the Standard &
Poors 500 Index is cheaper than any
time during its 34 peaks since 1989,
according to new research.
Companies in the US index trade
at 14.1 times earnings after increas-
ing 102 per cent since March 2009,
Bloomberg data shows.
But the information provider also
said traders have pushed the price of
contracts that pay on a 20 per cent
fall in the S&P to the most since
2007, compared with ones betting on
a surge of 20 per cent.
Profits grew 99 per cent between
the end of 2009 and 2011, and are
forecast to rise another 12 per cent
this year and 13 per cent in 2013, the
data showed.
The S&P closed at 1,374.09 on 1
March, moving back to 2008 highs,
after a jump in bank shares and fur-
ther upbeat data on the labour mar-
ket.
New US claims for unemployment
benefits, which dropped 2,000 to
351,000 in the latest week a near-
four year low were viewed as anoth-
er sign the economy may be on the
mend.
The fall was partly offset by an
Institute for Supply Management
report showing the pace of growth
in the US manufacturing sector
slowed unexpectedly in February.
S&P 500 stocks at cheapest
for 23 years, report claims
A SECOND mystery bidder has signed
a term sheet to buy regional unit BMI
Baby, which is being sold off as part of
IAGs purchase of BMI from
Lufthansa.
An unnamed EU-based airline
group has tabled an offer to buy 100
per cent of the business.
The term sheet is non-exclusive,
and allows an anonymous UK-based
company that made an approach
January to continue talks.
BMI plans to sign a definitive sale
purchase agreement with one of the
parties in the next few weeks, it said
in a statement.
...as BMI Baby
gets second bid
OFT wont open
IAG deal probe...
BY JOHN DUNNE
M&A

TRANSPORT

TRANSPORT

BY PETER EDWARDS
CAPITAL MARKETS

News
21 CITYA.M. 6 MARCH 2012
ANALYSIS l Abcam PLC
P
23Feb 29Feb 1 Mar 2Mar 5Mar
355
360
350
345
335
340
330
361.00
5 Mar
THE ICEMAN COMETH TO TRIAL
FORMER
Icelandic prime
minister Geir
Haarde went
on trial yester-
day for failing
to prevent the
island nations
2008 financial
crash. Haarde,
who denies the
charges, said
nobody realised
there was
something fishy
within the
banking
system.
Pic: GETTY
Cofunds
The UK platform for financial services
has hired Russ Thornton as chief tech-
nology officer as of 20 February. Prior
to joining Cofunds, Thornton was
chief technology officer at the man-
agement consultancy McKinney
Rogers, where he was responsible for
implementing its strategic reporting
technology solutions into their global
client base.
Rockspring
The property investment manager has
appointed Lauren Smith as a manager
in its investor relations team. Smith
joins Rockspring from Pradera, where
she worked as a product champion on
new fund launches. She has also
worked at AEW Europe and holds an
MSc in real estate investment from
Cass Business School.
HSBC
The banking group has hired Jose
Mosquera as head of European finan-
cial credit trading. Jose has 14 years
of credit trading experience on both
the sell side at Barclays Capital and
UBS and on the buy side as a found-
ing partner of Breogan Global
Financials.
Restoration Partners
The boutique technology merchant
bank has hired Mike Kennedy as a
partner in its London offices. Kennedy
is an experienced venture capitalist
and adviser who has worked for a
decade in the venture capital industry
with 3i, YFM Group and Electra. He
previously worked in technology train-
ing and operational management at
Unilever and Marks & Spencer.
Towers Watson
The professional services company
has appointed senior life insurance
experts Tim Bateman, Peter Murphy
and Miles Stanhope to its UK risk
consulting business. Bateman, who
will join the London team, has sever-
al years of experience in the life
insurance sector having held a num-
ber of senior industry positions, most
recently at Equitable Life. Murphy,
who was previously with Lloyds
Banking Group, has joined the
Towers Watson team in Manchester,
while Stanhope is a financial model-
ling specialist and has joined from
PwC.
CITY MOVES | WHOS SWITCHING JOBS Edited by Elizabeth Fournier
+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
Lower US markets
led by commodities
U
S stocks fell yesterday for the
second straight session and the
third in the last four trading
days, led lower by basic materi-
als shares after China trimmed its
growth target for 2012.
The S&P 500 index opened lower
and data showing the US services sec-
tor expanded in February at its fastest
pace in a year did little to stem the
decline.
The benchmark S&P 500 is up 8.5
per cent so far this year on investor
expectations for a recovery in the US
economy, a containment of the Euro
zones debt crisis and the belief that
China will avoid a hard landing in its
current economic cycle.
China, the worlds second-largest
economy, lowered its 2012 growth tar-
get to an eight-year low of 7.5 per cent
and made expanding consumer
demand its top priority, as Beijing
looks to shrink the economys
reliance on external spending and
foreign capital.
That spooked everybody this
morning. It started over in Asia,
flowed right to Europe and flowed
right over here, said Ken Polcari,
managing director at ICAP Equities in
New York.
The fact is they are guiding a little
bit lower to control their inflation. It
is not necessarily the end of the
world, but it gave people a reason to
take some money off the table.
Materials shares, sensitive to signs
of slowing in Chinas commodity-
hungry economy, dropped and were
the biggest drag on Wall Street. The
S&P materials sector index fell 1.6 per
cent, with Freeport McMoRan Copper
& Gold off 3.8 per cent at $40.45.
The Dow Jones industrial average
shed 14.76 points, or 0.11 per cent, to
12,962.81 at the close. The Standard &
Poors 500 Index dipped 5.30 points,
or 0.39 per cent, to 1,364.33. The
Nasdaq Composite Index lost 25.71
points, or 0.86 per cent, to close at
2,950.48.
During the session, the S&P 500
briefly dipped below its 14-day mov-
ing average a line it has held for the
last 50 sessions in an impressive run.
The Nasdaq registered the biggest
decline among the three major US
stock indexes as Apple dropped as
much as 3.5 per cent to a session low
at $526 on heavy volume. By the close,
it was down 2.2 per cent at $533.16.
The company is expected to debut its
new iPad this week. The S&P technol-
ogy sector index lost one per cent.
Alpha Natural Resources shares
dropped 6 per cent to $16.35 and Arch
Coal slid 5.4 per cent to $12.20 as
lower natural gas prices added to
growth concern in China.
B
RITAINS FTSE 100 fell yester-
day, as weakness in miners and
engineers outstripped strength
in defensive stocks after China
cut its growth forecasts, while mixed
economic data in Europe and the
United States dimmed the outlook
for global growth.
Londons blue chip index shed
36.31 points or 0.6 per cent to
5,874.82, although it held within its
recent tight range between 5,830 and
5960, in place since early February.
Volumes were weak and implied
volatility rose 3.3 per cent, suggest-
ing concern had returned among
investors, although the level
remained at less than half the multi-
year peaks set in September 2011.
Weighing on the FTSE 100 was the
announcement that China, the
worlds most voracious consumer of
raw materials, had cut its official
growth target for 2012 to an eight-
year low of 7.5 per cent.
Chinese economic growth is an
assumption that many investors have
come to rely on and so anything less
than perfection will be badly
received, David Miller, partner at
Cheviot.
A softening of growth in the
worlds second-biggest economy is
bad news for the demand outlook for
miners, which fell in tandem with
base metals.
Global miner BHP Billiton, the
FTSEs second-biggest stock by mar-
ket cap, fell 2.9 per cent, while auto
and plane parts maker GKN, which
was looking to China as a key driver
of demand for premium cars this
year, fell 2.0 per cent.
Commodities trader Glencore shed
four per cent as the firm reported in-
line full-year results and stuck to its
guns over proposed merger terms
with Xstrata. Xstrata slipped 4.9 per
cent, but brokerage Killik said it likes
the Glencore-Xstrata merger due to
the ability to benefit from increased
economies of scale in terms of proj-
ect development, M&A clout, market-
ing and purchasing, while its
preferred means of getting exposure
to the combination is through
Xstrata.
Kazakhmys was down 4.9 per cent
as BofA Merrill Lynch and HSBC cut
their respective ratings to neutral,
with the former concerned over the
risk to the Kazakh miners earnings
because of declining grades and local
cost inflation.
News that the Eurozones private
sector shrank last month and
Britains dominant services industry
expanded less than forecast, added to
the economic gloom.
Mixed US economic data also mud-
died the global growth outlook.
That did little to improve senti-
ment surrounding engineers such as
Weir and IMI, down 4.7 and 1.7 per
cent respectively.
Weir was already under pressure
after Citigroup downgraded its rat-
ing for the pumps manufacturer to
sell from neutral following
recent full-year 2011 results.
Serco shed 5.9 per cent as BofA
Merrill Lynch downgraded its rating
for the outsourcing group to neu-
tral from buy, following recent
full-year results, on valuation
grounds.
Banks were also lower, weighed
down by concerns of an outright
default for Greece. The countrys
finance minister, Evangelos
Venizelos, warned Athens was ready
to enforce losses on Greeces private
sector creditors if they do not accept
the countrys debt swap offer, which
traders said would almost certainly
trigger credit default swaps on its
bonds.
FTSE slides as miners hit by
Chinas cut in growth targets
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 Babcock International Group PLC
765
760
755
750
745
740
28Feb 29Feb 1 Mar 2Mar 5Mar
p 754.50
5 Mar
BABCOCK
Panmure Gordon has upgraded engineering company Babcock to buy and
raises its target price from 760p to 850p. The broker is impressed by last
weeks 200m contract win with the Royal Australian Navy to provide sup-
port for the Navy's eight Anzac class frigates, and has taken the decision to
upgrade the target due to recent share price underperformance and the
recent re-rating of its rivals.
ANALYSIS l Scania AB
135
134
133
132
131
130
129
28Feb 29Feb 1 Mar 2Mar 5Mar
SEK 132.20
5 Mar
SCANIA
UBS sees money in trucking, upgrading Scania to buy and increasing the
target price from 125 Swedish Krona to 160. Although the broker believes
the overall truck market will remain flat in 2012, it sees substantial growth of
26 per cent in 2013 as the replacement cycle from trucks sold in 2005-2008
gathers momentum. A large number of trucks were sold before the financial
crisis and these fleets of ageing vehicles will soon need replacing, it notes.
ANALYSIS l Jupiter Fund Management PLC
262
260
258
256
254
252
250
248
28Feb 29Feb 1 Mar 2Mar 5Mar
p 250.00
5 Mar
JUPITER FUND MANAGEMENT
Numis have upgraded fund manager Jupiter from hold to buy with a tar-
get of 305p. The broker sees an improvement in retail investor sentiment
and equity flows are recovering, all of which leaves Jupiter as the best posi-
tioned listed company to benefit, in its eyes. Numis expects growth in the UK
retail savings industry and sees Jupiter as a core long term holding in the
investment sector.
29Feb 28Feb 1 Mar 2Mar 5Mar
5,950
5,875
5,900
5,925
ANALYSIS l FTSE
5,874.82
5 Mar
Warburg Pincus
The private equity firm focused on growth
investing has announced the appointment of
Francesco Granata as an executive-in-resi-
dence, focusing on the healthcare sector.
Granata will be based in Warburg Pincus
London office, and will help the firm assess
new investments in the biopharmaceutical
sector. He has over 35 years experience in
the pharmaceutical and biotechnology indus-
tries, including time as executive vice presi-
dent at Biogen Idec.
News
22 CITYA.M. 6 MARCH 2012
LON GD ONCE FIX AM...........1698.00 -16.50
SILVER LDN FIX AM ..................34.19 -0.66
MAPLE LEAF 1 OZ ....................36.29 1.07
LON PLATINUM AM................1665.00 -36.00
LON PALLADIUM AM...............706.00 -5.00
ALUMINIUM CASH .................2295.00 4.50
COPPER CASH ......................8574.50 36.50
LEAD CASH...........................2133.00 -22.00
NICKEL CASH......................19385.00 -355.00
TIN CASH.............................23625.00 -250.00
ZINC CASH ............................2088.00 5.00
BRENT SPOT INDEX................124.67 0.37
SOYA .....................................1328.25 11.50
COCOA..................................2358.00 -34.00
COFFEE...................................201.65 -2.35
KRUG.....................................1766.90 -13.20
WHEAT ....................................167.80 0.80
AIR LIQUIDE........................................98.94 0.69 100.65 80.90
ALLIANZ..............................................90.17 -0.97 107.45 56.16
ANHEUS-BUSCH INBEV ....................50.95 0.33 51.43 33.85
ARCELORMITTAL...............................15.30 -0.61 26.90 10.47
AXA......................................................12.32 -0.07 15.97 7.88
BANCO SANTANDER...........................6.23 -0.13 8.46 4.94
BASF SE..............................................65.65 -0.99 70.22 42.19
BAYER.................................................55.22 -0.43 59.44 35.36
BBVA......................................................6.69 -0.12 8.81 4.94
BMW ....................................................70.63 0.02 73.85 43.49
BNP PARIBAS.....................................37.40 -0.52 55.52 22.72
CARREFOUR ......................................18.70 -0.18 30.70 14.66
CRH PLC .............................................16.13 -0.22 17.03 10.28
DAIMLER.............................................46.00 -0.24 53.95 29.02
DANONE..............................................51.73 0.77 53.16 41.92
DEUTSCHE BANK..............................35.13 -0.73 46.79 20.79
DEUTSCHE BOERSE .........................47.60 -1.04 57.68 35.65
DEUTSCHE TELEKOM.........................8.68 0.02 11.38 7.88
E.ON.....................................................17.29 -0.22 23.60 12.50
ENEL......................................................3.12 -0.00 4.86 2.78
ENI .......................................................17.49 -0.01 18.18 11.83
FRANCE TELECOM............................11.34 -0.10 15.98 11.09
GDF SUEZ ...........................................19.73 0.13 28.98 17.65
GENERALI ASS...................................12.78 -0.21 16.44 10.34
IBERDROLA..........................................4.48 -0.03 5.95 4.16
INDITEX ...............................................68.64 -0.69 70.15 50.92
ING GROEP CVA...................................6.88 -0.11 9.50 4.21
INTESA SANPAOLO.............................1.50 -0.01 2.31 0.85
KON.PHILIPS ELECTR.......................15.57 -0.23 24.10 12.01
L'OREAL..............................................88.48 0.80 91.24 68.83
LVMH..................................................128.60 -0.55 132.65 94.16
MUNICH RE.......................................109.05 -0.05 120.80 77.80
NOKIA....................................................3.89 -0.01 6.36 3.33
REPSOL YPF.......................................19.94 -0.47 24.90 17.31
RWE.....................................................34.50 -0.24 48.48 21.15
SAINT-GOBAIN...................................35.61 -0.76 47.64 26.07
SANOFI ................................................57.62 0.26 57.84 42.85
SAP......................................................51.39 0.19 51.70 32.88
SCHNEIDER ELECTRIC.....................51.38 -0.98 61.83 35.00
SIEMENS .............................................74.27 -0.80 99.39 62.13
SOCIETE GENERALE.........................24.95 -0.45 49.99 14.32
TELECOM ITALIA..................................0.86 0.00 1.16 0.70
TELEFONICA ......................................12.79 -0.08 18.35 12.50
TOTAL..................................................42.35 -0.11 44.55 29.40
UNIBAIL-RODAMCO SE...................147.20 -0.50 162.95 123.30
UNICREDIT............................................4.09 -0.03 12.44 2.20
UNILEVER CVA...................................25.28 0.23 27.16 20.90
VINCI ....................................................39.49 0.08 45.48 28.46
VIVENDI ...............................................14.15 -0.22 21.37 14.07
VOLKSWAGEN VORZ ......................142.95 -1.00 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5874.82 -36.31 -0.61
FTSE 250 INDEX. . . . . . . . 11414.10 -124.33 -1.08
FTSE UK ALL SHARE . . . . 3044.53 -20.58 -0.67
FTSE AIMALL SH . . . . . . . . 822.50 -6.61 -0.80
DOWJONES INDUS 30 . . 12962.81 -14.76 -0.11
S&P 500 . . . . . . . . . . . . . . . 1364.33 -5.30 -0.39
NASDAQ COMPOSITE . . . 2950.48 -25.71 -0.86
FTSEUROFIRST 300 . . . . . 1080.54 -6.54 -0.60
NIKKEI 225 . . . . . . . . . . . . . 9698.59 -78.44 -0.80
DAX 30 PERFORMANCE. . 6866.46 -54.91 -0.79
CAC 40 . . . . . . . . . . . . . . . . 3487.54 -13.63 -0.39
SHANGHAI SE INDEX . . . . 2445.00 -15.69 -0.64
HANG SENG. . . . . . . . . . . 21265.31 -296.95 -1.38
S&P/ASX 20 INDEX . . . . . . 2528.60 0.00 0.00
ASX ALL ORDINARIES . . . 4354.20 0.00 0.00
BOVESPA SAO PAOLO. . 66964.03 -817.57 -1.21
ISEQ OVERALL INDEX . . . 3226.24 -39.57 -1.21
STRAITS TIMES . . . . . . . . . 2904.76 -1.93 -0.07
IGBM. . . . . . . . . . . . . . . . . . . 851.87 -10.52 -1.22
SWISS MARKET INDEX. . . 6153.91 4.54 0.07
Price Chg %chg
3M........................................................87.06 -0.46 98.19 68.63
ABBOTT LABS ...................................57.28 -0.11 57.52 46.29
ALCOA ..................................................9.87 -0.37 18.47 8.45
ALTRIA GROUP..................................30.26 0.30 30.40 23.20
AMAZON.COM..................................180.26 0.96 246.71 160.59
AMERICAN EXPRESS........................52.97 -0.02 54.45 41.30
AMGEN INC.........................................67.23 -0.50 70.00 47.66
APPLE...............................................533.16 -12.02 548.21 310.50
AT&T....................................................30.99 0.12 31.94 27.27
BANK OF AMERICA.............................7.97 -0.16 14.70 4.92
BERKSHIRE HATAW B.......................79.17 0.88 86.91 65.35
BOEING CO.........................................74.13 -0.77 80.65 56.01
CATERPILLAR..................................110.09 -2.40 116.95 67.54
CHEVRON.........................................109.32 -0.29 110.99 86.68
CISCO SYSTEMS................................19.60 -0.16 20.49 13.30
CITIGROUP.........................................33.68 -0.42 46.90 21.40
COCA-COLA.......................................69.23 0.05 71.77 61.29
COMCAST CLASS A..........................29.10 -0.14 29.92 19.19
CONOCOPHILLIPS.............................77.56 -0.09 81.80 58.65
CVS/CAREMARK................................45.17 0.14 45.39 31.30
DU PONT(EI) DE NMR........................50.89 -0.56 57.50 37.10
EXXON MOBIL....................................87.01 0.68 88.13 63.47
GENERAL ELECTRIC.........................18.85 -0.12 20.93 14.02
GOOGLE A........................................614.25 -7.00 670.25 473.02
HEWLETT PACKARD.........................25.01 -0.31 43.86 19.92
HOME DEPOT.....................................47.39 -0.02 48.07 28.13
IBM.....................................................200.66 1.85 201.19 151.71
INTEL CORP .......................................26.54 -0.38 27.50 19.16
J.P.MORGAN CHASE.........................40.40 -0.23 47.80 27.85
JOHNSON & JOHNSON.....................64.91 0.14 68.05 55.76
KRAFT FOODS A................................38.35 0.10 39.06 24.30
MC DONALD'S CORP ........................99.94 0.44 102.22 72.89
MERCK AND CO. NEW......................38.45 0.52 39.43 29.47
MICROSOFT........................................31.80 -0.28 32.44 23.65
OCCID. PETROLEUM.......................103.52 -0.84 117.89 66.36
ORACLE CORP...................................30.24 0.28 36.50 24.72
PEPSICO.............................................62.79 0.27 71.89 58.50
PFIZER ................................................21.50 0.09 22.17 16.63
PHILIP MORRIS INTL .........................85.42 0.87 85.43 60.45
PROCTER AND GAMBLE ..................66.95 0.28 67.77 56.57
QUALCOMM INC.................................62.11 -0.32 63.81 45.98
SCHLUMBERGER ..............................75.69 -1.50 95.53 54.79
TRAVELERS CIES..............................58.50 0.49 64.17 45.97
UNITED TECHNOLOGIE ....................83.29 -1.25 91.83 66.87
UNITEDHEALTH GROUP...................55.04 -0.80 56.16 41.27
VERIZON COMMS ..............................39.00 0.33 40.48 32.28
VISA CL A..........................................116.24 0.08 119.36 70.45
WAL-MART STORES..........................59.40 0.39 62.63 48.31
WALT DISNEY CO ..............................42.70 0.34 44.34 28.19
WELLS FARGO & CO.........................30.97 -0.31 32.97 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 ..................0.265 0.00
LIBOR Euro - 12 months ................1.570 -0.04
LIBOR USD - overnight...................0.139 0.00
LIBOR USD - 12 months.................1.055 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 .........................3.120 0.06
European repo rate.........................0.138 0.00
Euro Euribor ....................................0.328 0.00
The vix index ...................................18.45 1.45
The baItic dry index ........................771.0 0.00
Markit iBoxx...................................243.61 0.14
Markit iTraxx..................................129.91 1.47
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
BAE Systems . . . . . .308.0 -2.0 340.8 248.1
Chemring Group . . . .428.4 18.1 736.5 368.8
Cobham . . . . . . . . . . .192.3 -0.3 236.5 165.9
Meggitt . . . . . . . . . . . .400.2 0.1 403.0 304.9
QinetiQ Group . . . . . .151.2 -0.4 153.2 101.5
RoIIs-Royce HoIdi . . .818.5 -4.0 826.5 557.5
Senior . . . . . . . . . . . . .193.2 -2.6 201.0 132.6
UItra EIectronics . . .1723.0 13.0 1752.0 1305.0
GKN . . . . . . . . . . . . . .214.0 -4.4 245.0 157.0
BarcIays . . . . . . . . . . .252.9 -3.9 313.1 138.9
HSBC HoIdings . . . . .558.6 -10.4 670.6 463.5
LIoyds Banking Gr . . .35.6 -0.1 62.4 21.8
RoyaI Bank of Sco . . .27.4 -0.7 44.4 17.3
Standard Chartere .1612.0 -13.5 1696.5 1169.5
AG Barr . . . . . . . . . .1168.0 -12.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .389.1 4.1 444.0 289.9
Diageo . . . . . . . . . . .1527.5 23.0 1535.0 1112.0
SABMiIIer . . . . . . . . .2589.5 6.5 2609.0 1979.0
AZ EIectronic Mat . . .293.0 -2.0 338.1 206.1
Croda Internation . .2125.0 -20.0 2182.0 1556.0
EIementis . . . . . . . . . .183.7 7.5 187.4 107.5
Johnson Matthey . .2274.0 -28.0 2351.0 1523.0
Victrex . . . . . . . . . . .1332.0 -14.0 1590.0 1025.0
YuIe Catto & Co . . . . .204.3 -7.9 253.0 148.0
C/$ 1.3227 0.0030
C/ 0.8338 0.0004
C/ 107.68 0.2555
/C 1.1992 0.0004
/$ 1.5862 0.0029
/ 129.13 0.3760
FTSE 100
5874.82
36.31
FTSE 250
11414.10
124.33
FTSE ALLSHARE
3044.53
20.58
DOW
12962.81
14.76
NASDAQ
2950.48
25.71
S&P 500
1364.33
5.30
Smith (DS) . . . . . . . . .174.0 -2.3 183.4 113.3
Smiths Group . . . . .1070.0 -11.0 1353.0 869.5
Brown (N.) Group . . .234.6 -4.2 304.5 227.0
Carpetright . . . . . . . . .634.0 -18.0 770.5 375.0
Debenhams . . . . . . . . .72.9 -1.5 74.8 51.2
Dignity . . . . . . . . . . . .820.0 -5.0 854.5 690.0
Dixons RetaiI . . . . . . .15.2 -0.4 19.9 9.4
DuneImGroup . . . . . .482.8 -25.7 524.5 383.9
HaIfords Group . . . . .310.4 -4.6 405.9 268.6
Home RetaiI Group . .103.0 -1.3 228.5 72.5
Inchcape . . . . . . . . . .373.0 -5.7 425.4 268.1
JD Sports Fashion . .814.5 1.0 1030.0 570.0
Kesa EIectricaIs . . . . .73.4 -2.2 151.4 60.2
Kingfisher . . . . . . . . .282.3 -3.4 287.1 217.0
Marks & Spencer G . .359.3 -1.2 402.2 301.8
Next . . . . . . . . . . . . .2746.0 1.0 2810.0 1868.0
Sports Direct Int . . . .287.4 -6.3 296.1 179.6
WH Smith . . . . . . . . . .534.0 -10.0 559.0 433.8
Smith & Nephew . . . .616.5 -10.0 718.5 521.0
Synergy HeaIth . . . . .830.5 -3.5 981.0 808.0
Barratt DeveIopme . .143.0 -4.1 149.2 67.5
BeIIway . . . . . . . . . . . .800.0 -15.5 820.5 540.5
BerkeIey Group Ho .1360.0 -23.0 1394.0 960.0
BaIfour Beatty . . . . . .272.0 -7.0 357.3 214.6
CRH . . . . . . . . . . . . .1340.0 -26.0 1687.0 1053.0
GaIIiford Try . . . . . . . .604.5 2.5 618.5 332.8
Kier Group . . . . . . . .1206.0 -8.0 1489.0 1097.0
Drax Group . . . . . . . .503.0 -7.0 581.5 371.9
SSE . . . . . . . . . . . . . .1315.0 6.0 1423.0 1184.0
Domino Printing S . .658.0 2.0 705.0 434.3
HaIma . . . . . . . . . . . . .391.8 -1.7 429.6 306.3
Laird . . . . . . . . . . . . . .179.7 0.4 207.0 127.9
Morgan CrucibIe C . .341.1 -8.4 360.0 224.0
Oxford Instrument .1144.0 -13.0 1175.0 600.5
Renishaw . . . . . . . . .1443.0 -16.0 1886.0 800.0
Spectris . . . . . . . . . .1767.0 -6.0 1776.0 1039.0
Aberforth SmaIIer . . .630.0 -3.5 714.0 494.0
AIIiance Trust . . . . . .371.0 -3.4 392.7 310.2
Bankers Inv Trust . . .416.5 -4.2 428.0 346.5
BH GIobaI Ltd. GB .1195.0 1.0 1212.0 1058.0
BH GIobaI Ltd. US . . . .11.8 0.0 12.2 10.4
BH Macro Ltd. EUR . . .19.7 -0.0 20.2 16.3
BH Macro Ltd. GBP 2040.0 -20.0 2078.0 1661.0
BH Macro Ltd. USD . . .19.6 -0.2 20.2 16.2
BIackRock WorId M .726.5 -13.5 815.5 574.5
BIueCrest AIIBIue . . .164.3 -0.6 176.2 160.6
British Assets Tr . . . .127.0 -1.0 139.4 109.0
British Empire Se . . .446.9 -5.0 533.0 404.0
CaIedonia Investm .1535.0 -17.0 1800.0 1337.0
City of London In . . .294.3 -2.0 306.9 257.0
Dexion AbsoIute L . .138.1 -0.2 150.7 130.0
Edinburgh Dragon . .250.4 -2.2 253.0 201.4
Edinburgh Inv Tru . . .490.3 -1.8 496.5 414.9
EIectra Private E . . .1687.0 37.0 1755.0 1287.0
F&C Inv Trust . . . . . .310.0 -1.9 327.9 261.5
FideIity China Sp . . . . .85.5 -2.0 114.3 70.0
FideIity European . .1114.0 -8.0 1287.0 912.0
HeraId Inv Trust . . . . .517.0 -3.5 545.5 419.0
HICL Infrastructu . . . .118.8 -0.5 121.3 112.7
Impax Environment .102.4 -0.6 125.4 88.5
John Laing Infras . . .109.7 -0.2 110.6 103.8
JPMorgan American .929.0 -7.5 940.5 721.5
JPMorgan Asian In . .199.5 -3.0 244.0 170.1
JPMorgan Emerging .562.5 -10.0 610.5 480.1
JPMorgan European .730.0 -8.0 983.5 624.0
JPMorgan Indian I . . .373.0 -8.4 459.0 313.1
JPMorgan Russian .589.0 0.0 741.0 415.1
Law Debenture Cor . .381.0 -3.0 386.4 321.0
MercantiIe Inv Tr . . .1014.0 -8.0 1119.0 823.0
Merchants Trust . . . .381.5 -3.0 431.8 341.5
Monks Inv Trust . . . .338.5 -5.1 367.9 298.1
Murray Income Tru . .657.5 -8.0 673.0 568.0
Murray Internatio . . .984.0 -2.0 991.5 818.5
PerpetuaI Income . . .267.0 -0.2 276.0 236.5
PersonaI Assets T .35130.0 30.0 35350.030210.0
PoIar Cap TechnoI . .381.1 -4.0 389.2 299.5
RIT CapitaI Partn . . .1200.0 -7.0 1360.0 1173.0
Scottish Inv Trus . . . .484.0 -6.8 524.0 417.0
Scottish Mortgage . .691.0 -10.0 781.0 565.0
SVG CapitaI . . . . . . . .273.8 -0.6 281.4 165.1
TempIe Bar Inv Tr . . .926.0 -9.0 952.0 791.0
TempIeton Emergin .619.0 -10.0 684.5 497.0
TR Property Inv T . . .152.3 -1.7 206.1 136.2
TR Property Inv T . . . .70.1 -0.6 94.0 59.8
Witan Inv Trust . . . . .489.4 -1.1 533.0 401.5
3i Group . . . . . . . . . . .195.9 -2.1 307.5 166.9
3i Infrastructure . . . .122.0 -0.4 125.2 113.4
Aberdeen Asset Ma .244.8 -3.5 265.8 167.8
Ashmore Group . . . .388.0 -4.3 420.0 301.5
Brewin DoIphin Ho . .161.0 3.5 184.7 113.7
CameIIia . . . . . . . . . .9737.5 -12.510950.0 8800.0
CharIes TayIor Co . . .131.0 0.0 165.0 115.6
City of London Gr . . . .66.0 0.0 93.6 61.3
City of London In . . .373.3 3.3 440.0 304.3
CIose Brothers Gr . . .750.0 -11.0 875.0 590.0
CoIIins Stewart H . . . .98.0 -0.5 99.3 48.5
F&C Asset Managem .70.8 -0.7 85.5 56.1
Hargreaves Lansdo .445.3 -0.2 646.5 402.5
HeIphire Group . . . . . . .2.1 -0.1 17.4 1.4
Henderson Group . . .115.0 -3.7 173.1 95.1
Highway CapitaI . . . . .13.0 0.0 21.0 7.0
ICAP . . . . . . . . . . . . . .400.9 -3.8 541.5 311.6
IG Group HoIdings . .451.2 -0.3 502.5 393.6
Intermediate Capi . . .275.5 -0.9 345.0 197.9
InternationaI Per . . . .252.0 4.1 388.8 148.5
InternationaI Pub . . . .119.1 0.1 121.5 108.6
Investec . . . . . . . . . . .406.2 -5.7 522.0 318.4
IP Group . . . . . . . . . . .114.5 -0.5 116.3 36.0
Jupiter Fund Mana . .250.0 -2.5 328.7 184.9
Liontrust Asset M . . . .89.9 0.0 91.4 57.9
LMS CapitaI . . . . . . . . .59.4 0.3 64.8 54.0
London Finance & . . .19.5 -1.0 23.5 19.0
London Stock Exch .905.0 -9.0 1076.0 756.5
Lonrho . . . . . . . . . . . . .11.5 0.0 19.8 8.9
Man Group . . . . . . . . .148.4 -4.1 284.4 104.5
Paragon Group Of . .189.0 -1.9 206.1 134.6
Provident Financi . .1126.0 -4.0 1140.0 915.0
Rathbone Brothers .1254.0 9.0 1290.0 977.0
Record . . . . . . . . . . . . .11.3 0.0 35.5 11.0
RSM Tenon Group . . . .8.5 0.0 45.5 5.6
Schroders . . . . . . . .1567.0 -22.0 1906.0 1183.0
Schroders (Non-Vo .1233.0 -18.0 1554.0 970.0
TuIIett Prebon . . . . . .329.9 1.9 428.6 262.3
WaIker Crips Grou . . .40.5 0.0 51.5 40.0
BT Group . . . . . . . . . .215.9 -0.7 217.8 161.0
CabIe & WireIess . . . .34.1 -0.3 51.2 31.3
CabIe & WireIess . . . .33.5 0.5 72.6 14.2
COLT Group SA . . . . .99.7 0.7 154.0 84.1
KCOM Group . . . . . . . .69.9 0.2 84.0 58.5
TaIkTaIk TeIecom . . .143.8 0.0 150.0 118.9
TeIecomPIus . . . . . . .625.5 -2.5 802.0 440.0
Booker Group . . . . . . .75.4 0.2 80.0 54.5
Greggs . . . . . . . . . . . .545.0 -2.0 556.0 445.0
Morrison (Wm) Sup .287.2 -2.0 328.0 268.5
Ocado Group . . . . . . .103.8 0.8 237.0 52.9
Sainsbury (J) . . . . . . .294.1 -0.6 371.0 263.5
Tesco . . . . . . . . . . . . .316.7 -1.6 420.1 312.4
Associated Britis . . .1197.0 -1.0 1228.0 940.0
Cranswick . . . . . . . . .793.0 4.5 842.5 588.5
Dairy Crest Group . . .318.3 1.3 409.7 311.0
Devro . . . . . . . . . . . . .316.7 3.3 316.8 232.0
Tate & LyIe . . . . . . . . .695.0 -3.0 720.5 520.0
UniIever . . . . . . . . . .2046.0 16.0 2189.0 1796.0
Mondi . . . . . . . . . . . . .586.5 -9.5 664.0 413.5
Centrica . . . . . . . . . . .310.3 4.1 337.6 278.8
InternationaI Pow . . .366.1 0.6 368.6 279.4
NationaI Grid . . . . . . .649.0 2.0 651.4 543.5
Pennon Group . . . . . .725.0 -4.5 737.5 584.5
Severn Trent . . . . . .1584.0 3.0 1600.0 1375.0
United UtiIities . . . . .621.0 0.5 637.0 551.0
Cookson Group . . . . .672.0 -18.0 724.5 395.8
Rexam . . . . . . . . . . . .412.0 -3.2 417.0 299.8
RPC Group . . . . . . . .376.1 -6.3 393.2 231.5
Price Chg High Low
Bovis Homes Group .498.8 -7.2 514.0 326.5
Persimmon . . . . . . . .643.0 -11.5 706.5 374.0
Reckitt Benckiser . .3526.0 41.0 3597.0 3015.0
Redrow . . . . . . . . . . . .129.1 -1.0 136.2 103.5
TayIor Wimpey . . . . . . .47.4 -2.3 52.7 28.7
Bodycote . . . . . . . . . .406.4 -12.9 420.3 225.6
Fenner . . . . . . . . . . . .477.0 6.0 481.8 280.0
IMI . . . . . . . . . . . . . . . .974.0 -17.0 1119.0 636.5
MeIrose . . . . . . . . . . .385.8 -0.4 393.4 268.0
Northgate . . . . . . . . . .255.7 -1.0 346.7 190.9
Rotork . . . . . . . . . . .2049.0 -5.0 2099.0 1501.0
Spirax-Sarco Engi . .2050.0 -7.0 2101.0 1649.0
Weir Group . . . . . . .1939.0 -95.0 2236.0 1375.0
Evraz . . . . . . . . . . . . .405.2 -6.3 460.5 315.0
Ferrexpo . . . . . . . . . . .302.6 -19.7 499.0 238.7
TaIvivaara Mining . . .273.9 -9.3 589.0 195.2
BBAAviation . . . . . . .203.4 -0.8 223.4 156.0
Stobart Group Ltd . . .130.0 2.0 152.8 112.0
AdmiraI Group . . . . .1044.0 -15.0 1754.0 787.0
AmIin . . . . . . . . . . . . .336.0 -15.5 427.0 270.6
BeazIey . . . . . . . . . . . .139.9 -2.9 151.8 109.6
Informa . . . . . . . . . . . .427.1 -8.2 446.0 313.9
ITE Group . . . . . . . . . .228.4 -1.2 258.2 157.7
ITV . . . . . . . . . . . . . . . . .85.9 -1.7 92.0 51.7
Johnston Press . . . . . . .7.6 -0.3 12.3 4.1
MecomGroup . . . . . .178.0 -4.3 310.0 134.5
Moneysupermarket. .128.0 0.0 129.8 85.5
Pearson . . . . . . . . . .1206.0 -2.0 1255.0 1038.0
PerformGroup . . . . .275.0 -0.1 286.6 150.0
Reed EIsevier . . . . . .538.5 -3.0 578.0 461.3
Rightmove . . . . . . . .1355.0 -36.0 1446.0 933.0
STV Group . . . . . . . . .105.0 -2.1 168.0 76.3
Tarsus Group . . . . . .138.1 -0.4 165.0 119.5
Trinity Mirror . . . . . . . .45.0 -0.8 64.5 37.5
UBM . . . . . . . . . . . . . .588.0 -3.0 631.0 416.0
UTV Media . . . . . . . . .139.0 4.1 150.0 92.5
WiImington Group . .104.5 -1.5 165.0 78.5
WPP . . . . . . . . . . . . . .812.0 -16.0 828.0 578.0
YeII Group . . . . . . . . . . .4.6 0.1 11.0 3.4
African Barrick G . . .435.4 -14.6 616.5 393.5
AIIied GoId Minin . . . .113.6 4.4 263.3 34.4
AngIo American . . .2569.0 -72.0 3344.0 2138.5
AngIo Pacific Gro . . .325.0 -1.4 350.0 237.9
Antofagasta . . . . . . .1292.0 -42.0 1491.0 900.5
Aquarius PIatinum . .136.9 -7.1 404.0 136.0
BHP BiIIiton . . . . . . .1971.0 -59.5 2631.5 1667.0
CatIin Group Ltd. . . .415.5 -2.6 449.0 334.0
Hiscox Ltd. . . . . . . . . .405.7 -6.6 424.7 340.5
Jardine LIoyd Tho . . .686.5 -8.5 764.5 576.0
Lancashire HoIdin . . .758.0 -9.5 790.5 532.5
RSA Insurance Gro . .110.9 -0.1 139.8 99.6
Aviva . . . . . . . . . . . . . .367.4 -3.3 477.9 275.3
LegaI & GeneraI G . . .121.7 -0.4 123.8 89.8
OId MutuaI . . . . . . . . .160.6 -0.5 162.2 98.1
Phoenix Group HoI . .555.0 -8.0 688.0 451.1
PrudentiaI . . . . . . . . .720.0 -7.5 777.0 509.0
ResoIution Ltd. . . . . .266.9 -2.8 316.1 229.5
St James's PIace . . . .357.4 -7.5 376.0 294.0
Standard Life . . . . . . .236.0 -0.4 244.7 172.0
4Imprint Group . . . . .250.0 7.5 295.0 200.0
Aegis Group . . . . . . .174.4 -1.7 176.1 115.7
BIoomsbury PubIis . .121.0 0.0 138.0 91.3
British Sky Broad . . .683.0 -2.0 850.0 618.5
Centaur Media . . . . . . .43.0 0.9 65.4 32.5
Chime Communicati .232.3 2.3 298.5 163.0
Creston . . . . . . . . . . . .62.3 1.5 121.0 47.0
DaiIy MaiI and Ge . . .429.8 -10.2 537.5 343.4
Euromoney Institu . .705.0 -9.0 772.0 522.5
Future . . . . . . . . . . . . . .12.5 0.0 27.5 8.3
Haynes PubIishing . .212.0 0.0 257.0 192.0
Huntsworth . . . . . . . . .45.8 0.1 76.3 32.3
Bumi . . . . . . . . . . . . . .765.0 -1.54 770.0 748.5
Centamin (DI) . . . . . . . .86.5 -3.4 154.2 78.5
Eurasian NaturaI . . .675.0 -24.0 974.0 522.0
FresniIIo . . . . . . . . . .1832.0 -64.0 2150.0 1302.0
GemDiamonds Ltd. .250.4 -3.2 291.0 179.8
GIencore Internat . . .403.4 -16.7 531.1 348.0
HochschiId Mining . .485.0 -28.0 680.0 365.9
Kazakhmys . . . . . . . .951.5 -48.5 1493.0 730.0
Kenmare Resources . .54.9 -2.7 61.5 31.0
Lonmin . . . . . . . . . . .1068.0 -32.0 1880.0 941.0
New WorId Resourc .513.0 -17.0 1060.0 409.4
PetropavIovsk . . . . . .659.0 -34.0 1087.0 543.5
PoIymetaI Interna . .1016.0 -33.0 1175.0 877.0
RandgoId Resource 7030.0-180.0 7565.0 4425.0
Rio Tinto . . . . . . . . .3422.0-138.0 4595.0 2712.5
Vedanta Resources 1400.0 -54.0 4196.7 1388.0
Xstrata . . . . . . . . . . .1137.5 -59.0 1550.0 764.0
Inmarsat . . . . . . . . . . .468.1 -12.8 684.5 389.3
Vodafone Group . . . .171.1 0.5 182.7 155.1
Genesis Emerging . .510.5 -8.5 548.5 424.0
Afren . . . . . . . . . . . . . .133.5 -4.7 171.2 73.6
BG Group . . . . . . . . .1515.5 -7.5 1564.5 1144.0
BP . . . . . . . . . . . . . . . .504.6 8.1 512.0 363.2
Cairn Energy . . . . . . .332.0 -4.9 531.8 291.9
EnQuest . . . . . . . . . . .125.2 -1.0 158.5 85.7
Essar Energy . . . . . .107.1 -6.7 516.0 104.9
ExiIIon Energy . . . . . .222.2 -13.8 469.7 184.2
Heritage OiI . . . . . . . .166.9 -8.6 332.2 160.0
Ophir Energy . . . . . . .427.1 0.1 434.0 184.5
Premier OiI . . . . . . . . .427.1 -8.5 520.5 310.0
RoyaI Dutch SheII . .2274.5 -11.0 2402.0 1883.5
RoyaI Dutch SheII . .2306.5 -21.5 2489.0 1890.5
SaIamander Energy .244.8 -1.7 317.6 182.3
Soco Internationa . . .325.4 -10.2 400.0 278.0
TuIIow OiI . . . . . . . . .1457.0 -49.0 1601.0 945.5
Amec . . . . . . . . . . . .1109.0 3.0 1207.0 740.5
Hunting . . . . . . . . . . .812.5 -17.5 845.5 530.0
Kentz Corporation . .467.6 -8.3 508.0 347.0
LampreII . . . . . . . . . . .329.0 -5.0 395.2 220.7
Petrofac Ltd. . . . . . .1595.0 21.0 1610.0 1108.0
Wood Group (John) .763.5 0.0 764.5 469.9
Burberry Group . . . .1436.0 -3.0 1600.0 1092.0
PZ Cussons . . . . . . . .304.4 -2.6 387.9 285.0
Supergroup . . . . . . . .515.0 -20.0 1600.0 435.2
AstraZeneca . . . . . .2841.0 23.5 3194.0 2543.5
BTG . . . . . . . . . . . . . .352.6 0.3 361.8 210.3
Genus . . . . . . . . . . . .1323.0 -12.0 1368.0 853.5
GIaxoSmithKIine . . .1404.0 14.5 1497.0 1138.5
Hikma Pharmaceuti .750.0 1.5 869.0 555.5
Shire PIc . . . . . . . . . .2217.0 3.0 2300.0 1748.0
CapitaI & Countie . . .192.0 0.1 203.7 153.4
Daejan HoIdings . . .2941.0 -66.0 3040.0 2282.0
F&C CommerciaI Pr .102.1 -0.3 108.0 92.6
Grainger . . . . . . . . . . .107.0 -2.0 133.2 77.3
London & Stamford .114.2 -0.8 140.0 103.9
SaviIIs . . . . . . . . . . . . .367.5 2.5 427.1 256.2
UK CommerciaI Pro . .73.2 0.0 85.5 65.1
Unite Group . . . . . . . .198.7 -2.4 224.1 152.9
Big YeIIow Group . . .296.2 -1.3 344.4 218.0
British Land Co . . . . .474.8 0.7 629.5 444.0
CapitaI Shopping . . .336.1 -1.8 408.6 288.7
Derwent London . . .1728.0 -9.0 1880.0 1400.0
Great PortIand Es . . .360.0 -2.4 445.0 312.9
Hammerson . . . . . . . .401.4 -2.3 490.9 345.2
Hansteen HoIdings . . .75.0 -0.8 89.5 68.0
Land Securities G . . .691.5 2.0 885.0 612.0
SEGRO . . . . . . . . . . . .241.5 0.0 331.3 195.0
Shaftesbury . . . . . . . .497.0 -2.6 539.0 441.2
Aveva Group . . . . . .1709.0 -5.0 1799.0 1298.0
Computacenter . . . . .398.0 -5.6 490.0 324.7
Fidessa Group . . . . .1630.0 -25.0 2109.0 1444.0
Invensys . . . . . . . . . . .201.9 -2.5 357.3 180.9
Logica . . . . . . . . . . . . .89.1 0.2 144.8 59.0
Micro Focus Inter . . .451.8 -2.2 458.4 242.9
Misys . . . . . . . . . . . . .335.0 18.9 420.2 214.9
Sage Group . . . . . . . .307.0 -1.5 312.4 231.7
SDL . . . . . . . . . . . . . . .740.0 -16.0 756.0 586.0
TeIecity Group . . . . . .706.0 2.0 710.5 450.5
Aggreko . . . . . . . . . .2189.0 -30.0 2250.0 1395.5
Ashtead Group . . . . .257.0 -2.2 260.9 99.4
Atkins (WS) . . . . . . . .776.0 8.0 820.0 490.2
Babcock Internati . . .754.5 9.5 758.0 550.5
Berendsen . . . . . . . . .521.5 3.5 568.0 402.7
BunzI . . . . . . . . . . . . .960.5 -1.0 973.0 676.5
Cape . . . . . . . . . . . . . .429.4 -10.4 591.5 295.0
Capita . . . . . . . . . . . . .757.0 2.5 786.5 611.5
CariIIion . . . . . . . . . . .311.0 -9.0 403.2 281.0
De La Rue . . . . . . . . .948.5 -5.0 1001.0 730.0
DipIoma . . . . . . . . . . .390.0 3.6 425.5 263.5
EIectrocomponents .244.4 -6.1 294.9 182.2
Experian . . . . . . . . . . .931.0 -1.5 960.0 665.0
FiItrona PLC . . . . . . . .449.2 0.2 452.0 293.0
G4S . . . . . . . . . . . . . . .286.4 -2.3 291.3 219.9
Hays . . . . . . . . . . . . . . .83.5 -0.7 130.0 58.9
Homeserve . . . . . . . .219.0 -0.9 532.0 218.1
Howden Joinery Gr . .124.4 -1.0 126.3 93.1
Interserve . . . . . . . . . .304.0 -1.4 341.3 245.0
Intertek Group . . . . .2372.0 58.0 2457.0 1744.0
MichaeI Page Inte . . .479.0 -5.0 567.0 323.0
Mitie Group . . . . . . . .265.8 -0.6 271.0 195.9
PayPoint . . . . . . . . . . .575.0 -2.0 593.0 395.0
Premier FarneII . . . . .215.5 -7.5 308.8 144.5
Regus . . . . . . . . . . . . .106.7 -3.9 119.0 64.0
RentokiI InitiaI . . . . . . .75.2 -0.9 100.9 58.2
RPS Group . . . . . . . . .225.3 -1.7 253.0 156.6
Serco Group . . . . . . .527.0 -33.0 618.5 458.0
Shanks Group . . . . . .106.4 -0.4 130.9 90.8
SIG . . . . . . . . . . . . . . .114.6 -2.7 153.5 77.0
Travis Perkins . . . . .1054.0 -31.0 1090.0 715.0
WoIseIey . . . . . . . . .2422.0 -53.0 2500.0 1404.0
ARM HoIdings . . . . . .543.5 -10.5 645.0 464.0
CSR . . . . . . . . . . . . . .236.6 -4.6 391.4 154.1
Imagination Techn . .609.5 -7.5 630.5 296.9
Spirent Communica .150.0 -6.0 158.5 105.8
British American . .3205.0 -3.5 3244.0 2300.0
ImperiaI Tobacco . .2534.0 15.0 2542.0 1878.0
Betfair Group . . . . . . .885.0 5.0 1030.0 567.0
Bwin.party Digita . . .160.0 -2.1 204.0 100.6
CarnivaI . . . . . . . . . .1869.0 -52.0 2672.0 1742.0
Compass Group . . . .640.0 4.0 646.5 512.5
Domino's Pizza UK . .440.9 7.2 526.0 377.0
easyJet . . . . . . . . . . . .441.4 -4.7 476.1 301.0
FirstGroup . . . . . . . . .289.1 -2.0 371.3 285.3
Go-Ahead Group . . .1295.0 -5.0 1598.0 1190.0
Greene King . . . . . . .502.0 0.5 521.5 410.0
InterContinentaI . . .1441.0 -6.0 1452.0 955.0
InternationaI Con . . .165.1 -2.2 258.7 132.0
JD Wetherspoon . . . .405.0 3.6 468.3 380.5
Ladbrokes . . . . . . . . .151.7 -2.7 155.3 114.0
Marston's . . . . . . . . . . .96.0 -1.5 112.0 84.6
MiIIennium& Copt . .492.0 -0.5 563.0 371.2
MitcheIIs & ButIe . . . .262.6 -5.3 336.8 215.6
NationaI Express . . .240.0 1.3 270.2 201.6
Rank Group . . . . . . . .135.4 -2.5 153.7 109.5
Restaurant Group . . .288.0 2.0 335.0 254.9
Spirit Pub Compan . . .60.0 -1.0 61.3 35.3
Stagecoach Group . .267.8 -2.8 287.4 200.0
TUI TraveI . . . . . . . . . .198.0 -2.1 250.0 136.7
Whitbread . . . . . . . .1665.0 -7.0 1737.0 1409.0
WiIIiamHiII . . . . . . . . .225.3 -2.1 244.1 176.8
Abcam . . . . . . . . . . . .361.0 28.8 460.0 320.0
Advanced MedicaI . . .94.0 0.0 96.0 64.8
AIbemarIe & Bond . .348.0 -2.0 400.1 281.0
Amerisur Resource . .26.8 -0.3 29.0 9.5
Andor TechnoIogy . .548.5 -1.0 685.0 387.1
ArchipeIago Resou . . .64.5 -2.4 79.0 55.5
ASOS . . . . . . . . . . . .1700.0 -77.0 2468.0 1142.0
AureIian OiI & Ga . . . .19.8 -0.3 92.0 16.0
Avanti Communicat .260.0 2.0 523.0 248.5
BIinkx . . . . . . . . . . . . . .81.0 2.5 158.0 50.5
Borders & Souther . . .73.5 -2.0 80.5 43.5
BowLeven . . . . . . . . . .92.3 -4.3 382.3 62.0
Brooks MacdonaId 1315.0 7.5 1372.5 940.0
CIuff GoId . . . . . . . . . . .97.3 -6.8 120.8 66.5
Cove Energy . . . . . . .209.0 1.5 242.0 61.0
Daisy Group . . . . . . .108.5 0.0 127.0 88.0
EMIS Group . . . . . . . .417.5 2.5 580.0 397.5
Faroe PetroIeum . . . .171.0 -2.5 186.0 130.0
GuIfsands PetroIe . . .170.3 -1.5 342.0 142.5
GWPharmaceuticaI . .92.0 -1.0 130.0 78.5
H&T Group . . . . . . . . .334.3 0.5 395.0 285.0
Hargreaves Servic .1255.0 -3.0 1259.0 855.0
HeaIthcare Locums . . . .2.6 -0.1 2.9 2.6
Immunodiagnostic . .324.0 -16.3 1218.0 288.8
ImpeIIamGroup . . . .345.0 2.5 387.5 225.0
Iomart Group . . . . . . .142.0 -5.0 151.0 85.5
James HaIstead . . . . .499.3 0.0 511.0 410.0
London Mining . . . . .304.0 -9.3 436.5 257.5
Lupus CapitaI . . . . . .127.0 -4.9 150.0 86.0
M. P. Evans Group . .459.0 2.0 475.0 371.0
Majestic Wine . . . . . .427.5 0.5 510.0 315.0
May Gurney Integr . .288.5 -1.4 302.0 234.0
Monitise . . . . . . . . . . . .38.8 0.3 40.0 20.5
MuIberry Group . . . .1900.0 -25.0 1951.0 1215.0
Nanoco Group . . . . . . .76.0 -1.5 93.3 38.0
NauticaI PetroIeu . . .361.0 -7.8 444.3 223.5
NichoIs . . . . . . . . . . . .635.0 10.0 642.0 410.0
Numis Corporation . . .93.5 -1.0 120.5 72.0
Pan African Resou . . .17.3 -0.8 18.3 9.5
Patagonia GoId . . . . . .36.3 -1.0 70.0 35.8
Prezzo . . . . . . . . . . . . .68.0 1.0 71.5 53.5
Pursuit Dynamics . . . .84.0 0.5 392.0 67.0
Rockhopper ExpIor .383.8 0.5 393.5 141.0
RWS HoIdings . . . . . .510.0 -20.0 535.0 367.5
Secure Trust Bank .1060.0 -2.5 1070.0 755.0
Songbird Estates . . .114.0 1.0 160.3 103.0
VaIiant PetroIeum . . .507.0 1.5 638.5 400.0
Young & Co's Brew . .667.5 0.0 712.0 565.0
Misys . . . . . . . . . . . . .335.0 6.0
Chemring Group . . . .428.4 4.4
EIementis . . . . . . . . . .183.7 4.3
AIIied GoId Mining . .113.6 4.0
Intertek Group . . . . .2372.0 2.5
EIectra Private Eq . .1687.0 2.2
Brewin DoIphin HoI . .161.0 2.2
Domino's Pizza UK .440.9 1.7
InternationaI Pers . . .252.0 1.7
BP . . . . . . . . . . . . . . . .504.6 1.6
Ferrexpo . . . . . . . . . .302.6 -6.1
Essar Energy . . . . . .107.1 -5.9
Serco Group . . . . . . .527.0 -5.9
ExiIIon Energy . . . . . .222.2 -5.9
HochschiId Mining . .485.0 -5.5
DuneIm Group . . . . . .482.8 -5.1
Xstrata . . . . . . . . . . .1137.5 -4.9
Aquarius PIatinum . .136.9 -4.9
PetropavIovsk . . . . . .659.0 -4.9
Heritage OiI . . . . . . . .166.9 -4.9
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
AEROSPACE & DEFENCE
CONSTRUCTION & MATERIALS
ELECTRICITY
ELECTRONIC & ELECTRICAL EQ.
EQUITY INVESTMENT INSTRUM.
FINANCIAL SERVICES
FIXED LINE TELECOMS
FOOD & DRUG RETAILERS
FOOD PRODUCERS
FORESTRY & PAPER
GAS, WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
SOFTWARE & COMPUTER SERV.
SUPPORT SERVICES
TECHNOLOGY HARDW. & EQUIP.
TOBACCO
TRAVEL & LEISURE
AIM 50
NON LIFE INSURANCE REAL ESTATE INVEST. TRUSTS
http://corporate.webfg.com
mailto:
globaltechsales@webfg.com
AUTOMOBILES & PARTS
BANKS
CHEMICALS
BEVERAGES
GENERAL INDUSTRIALS
MOBILE TELECOMS
OIL & GAS PRODUCERS
OIL EQUIPMENT & SERVICES
MINING
NONEQUITY INVESTM. COMM.
Tsy 5.000 12 . . . .100.07 0.00 104.1 100.0
Tsy 5.250 12 . . . .101.22 -0.02 105.3 101.2
Tsy 9.000 12 . . . .103.66 0.00 111.1 102.4
Tsy 4.500 13 . . . .104.05 -0.03 106.5 104.0
Tsy 2.500 13 . . . .283.16 -0.01 287.7 281.5
Tsy 8.000 13 . . . . .111.72 -0.05 116.9 111.6
Tsy 5.000 14 . . . . .111.33 -0.12 112.9 109.3
Tsy 8.000 15 . . . .127.26 -0.18 129.2 123.8
Tsy 7.750 15 . . . .100.00 0.00 105.9 99.4
Tsy 4.750 15 . . . . .114.32 -0.18 115.4 109.1
Tsy 4.000 16 . . . . .113.80 -0.23 114.7 105.6
Tsy 2.500 16 . . . .343.67 -0.17 344.6 317.1
Tsy 8.750 17 . . . .140.56 -0.26 141.9 133.3
Tsy 1.250 17 . . . . .115.58 -0.26 116.6 108.4
Tsy 12.000 17 . . . .119.25 -0.63 128.6 119.1
Tsy 5.000 18 . . . .121.64 -0.27 122.5 110.6
Tsy 4.500 19 . . . . .119.88 -0.26 120.7 106.5
Tsy 3.750 19 . . . . .114.72 -0.27 115.6 100.7
Tsy 2.500 20 . . . .364.23 -0.31 367.1 320.4
Tsy 4.750 20 . . . .122.10 -0.29 123.5 107.7
Tsy 8.000 21 . . . .150.88 -0.30 153.4 134.8
Tsy 4.000 22 . . . . .116.26 -0.35 118.2 100.0
Tsy 1.875 22 . . . .126.29 -0.43 129.1 113.3
Tsy 2.500 24 . . . .327.20 -0.44 334.7 281.2
Tsy 5.000 25 . . . .127.68 -0.34 130.6 108.5
Tsy 4.250 27 . . . . .118.68 -0.44 122.7 99.1
Tsy 1.250 27 . . . .121.82 -0.59 127.0 106.6
Tsy 6.000 28 . . . .143.24 -0.43 148.0 120.7
Tsy 4.750 30 . . . .125.53 -0.33 130.5 104.3
Tsy 4.125 30 . . . .310.51 -0.47 322.8 268.2
Tsy 4.250 32 . . . . .118.03 -0.37 123.1 97.5
Tsy 4.250 36 . . . . .118.25 -0.40 123.9 96.8
Tsy 4.750 38 . . . .127.94 -0.42 134.2 105.0
Tsy 4.500 42 . . . .124.44 -0.40 130.8 101.3
% %
IF YOU ARE THINKING OF
YOUR OWN PRIVATE JET
www.hamlinjet.com +44 (0)1582 726760
CITYA.M. 6 MARCH 2012 23
Wealth Management | ISAs
I
LOVE free market capitalism. The reason is
simple: I hate famine, disease, misery, and
oppression. Im on a tour around the world
to promote the liberating power of free-
market capitalism.
Ive edited a book on the subject, The Morality
of Capitalism, which is coming out in at least 16
languages. Last week I was in Afghanistan, where
these ideas are urgently needed. This week Im in
the UK, celebrating capitalism in one of the most
important countries of its birth.
So what is capitalism? Its a legal, social, eco-
nomic, and cultural system of decentralised
innovation what the economist Joseph
Schumpeter called creative destruction that
relies on the voluntary cooperation and
exchange among legal equals. Capitalist culture
celebrates the entrepreneur, the scientist, the
risk-taker, the innovator, the creator. Although
derided as materialistic by some, capitalism is at
its core a spiritual and cultural enterprise. As
Joyce Appleby noted in her recent book The
Relentless Revolution: A History of Capitalism,
Because capitalism is a cultural system and not
simply an economic one, it cannot be explained
by material factors alone.
Far from being an amoral arena for the clash
of interests, capitalist interaction is highly struc-
tured by ethical norms and rules. Capitalism
rests on a rejection of the ethics of loot and grab,
the means by which most wealth enjoyed by the
wealthy is acquired in other economic and polit-
ical systems. For much of human history, those
who were rich were rich because they took from
others, and especially because they used their
power to gain monopolies and to confiscate the
produce of others through taxes. Its only under
conditions of capitalism that people commonly
become wealthy without being criminals.
The term capitalism has an interesting histo-
ry. The historian Fernand Braudel traced the
term capital to the period spanning the
twelfth and thirteenth centuries, when it
referred to funds, stock of merchandise, sum of
money, or money carrying interest. Of the many
uses of the term capitalist that Braudel cata-
logued, he noted dryly, The word is never... used
in a friendly sense. The word capitalism
emerged as a term, generally of abuse, in the
nineteenth century. The French socialist Louis
Blanc defined it as the appropriation of capital
by some to the exclusion of others. Karl Marx
used the term capitalist mode of production,
and it was his ardent follower Werner Sombart
who popularised the term in his influential
book Der Moderne Kapitalismus.
Despite its critics, capitalism is a uniquely
powerful, uniquely liberating system. It is about
creating value, not merely working hard, or
making sacrifices, or being busy. Those who
dont understand capitalism support job cre-
ation programmes. The economist Milton
Friedman was once shown construction on a
canal in Asia. When he noted that it was odd
that the workers were moving huge amounts of
earth and rock with small shovels, rather than
earth-moving equipment, he was told: You
dont understand; this is a jobs programme. His
response: Oh, I thought you were trying to build
a canal. If youre seeking to create jobs, why did-
nt you issue them spoons, rather than shovels?
Voluntary enterprise creates value, while govern-
ments usually just create busyness (and some-
times not even that).
Its important to distinguish free-market capi-
talism from crony capitalism, a system that has
mired many nations in corruption and back-
wardness and is, sadly, on the rise. In many coun-
tries, if someone is rich, there is a very good
chance that he (rarely she) holds political power
or is a close relative, friend or supporter in a
word, a crony of those who do hold power, and
that his wealth came not from being a producer
of valued goods and services but from enjoying
the privileges that the state can confer on some
at the expense of others.
Sadly, crony capitalism can with increasing
accuracy be applied to the economy of the
United States, a country in which failed firms
are routinely bailed out with money taken
from taxpayers, in which the national capital is
a gigantic hive of lobbyists, bureaucrats, politi-
cians, consultants and hacks, and in which
appointed officials of the Treasury department
and the central bank reward some firms and
harm others.
Such corrupt cronyism shouldnt be confused
with free-market capitalism, which is based on
the rule of law, on equality of rights for all, on
the freedom to choose, on the freedom to inno-
vate, on the guiding discipline of both private
profits and private losses. Under American
cronyism, the many are bought off with sub-
sidised home loans, the economy generates a
huge bubble, the financial system crashes and
the powerful get bailouts, only to be followed by
more bailouts, easier money and another cycle.
The cronyist system of private profits
and socialised losses hasnt worked out too well.
Give me free-market capitalism any day.
Tom Palmer is executive vice president of the Atlas
Network and works with over 400 free-market think
tanks around the world.
24
The Forum
CITYA.M. 6 MARCH 2012
Capitalist culture celebrates
the creator, the risk-taker,
the scientist, the innovator
At home and abroad, we all
need to be reminded of the
moral virtues of capitalism
cityam.com/forum
TOM PALMER
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
25
The left benefits
from this debate
but mustnt split
over fiscal policy
Putting the UK in
the black may be
risky for Labour
A
N INTERESTING and important debate
on fiscal policy is taking place on the
left. Its been described as In the black
Labour and has been debated on the
progressive website Policy Network. Its about
whether Labour should partly abandon its
Keynesianism and go fiscally conservative.
Its hardest advocates are sometimes called
old Blairites, but the argument resonates
across the spectrum of Labour party thinking.
And its origins come from a number of places.
First, like it or not, many of the cuts will
have been enacted by 2015. This is the reality
and theres a view that Labour needs to say
what it will do then. Saying it will just spend
more does not seem to cut the mustard.
Second, theres an argument that the lefts
apparent infatuation with spending has
obscured its other messages -- what you spend
it on and how you create a more people-friend-
ly market economy. To some of the new gener-
ation, socialism is the language of priorities,
not just of increasing the fiscal deficit.
But third, and most importantly, some left
wing thinkers and economists argue that it
will be hard to get a hearing for anything at all
unless Labour is tougher on its fiscal message.
By recalling Labours recovery from being
thought economically incompetent after the
1970s, the argument is that Labour may have
to talk very tough on fiscal responsibility to
overcome suspicion. As Gordon Brown, before
1997, promised to follow Tory spending plans
in his first two years, Labour must now trump
the coalition by making hard decisions. This
means introducing tough fiscal rules (tougher
than George Osbornes malleable rules),
accepting cuts, and increasing the independ-
ence of the Office for Budget Responsibility.
This is a sensible approach and it is not sur-
prising that rising star and shadow chief secre-
tary Rachel Reeves recently outlined an
approach exactly in its vein, nor that her boss,
Ed Balls, has made similar speeches.
But what are the dangers in this? One is that
it splits the Labour movement. Some strong
voices on the left want to forget the fiscal posi-
tion and how the public perceives it. If Labour
seems to disagree in public, the public will see
a divided party -- and that never wins votes.
Another danger is that this position inadver-
tently suggests that government cant make a
difference to the macro-economy, public serv-
ices or private sector productivity. It plays into
a narrative that the last Labour government
didnt have a good economic record and that
health and education didnt get better
through major investment and reform. This is
not only wrong but could close down impor-
tant elements of what progressive policy must
be about.
And that leads into the last danger, that
Labours message sounds too similar to the
coalitions and that the public feel they might
as well have those who revel in cutting servic-
es than an opposition which appears to have
come to it lately and reluctantly.
There remain, therefore, tricky issues for
Labour to negotiate. But the fact that these
debates are now happening shows that Labour
is starting to get its act together again.
Dan Corry is chief executive of New Philanthropy
Capital and a former Downing Street adviser.
National interest
[Re: Taxing homes more isnt the
answer, yesterday]
If we have to sell the land from
under our feet, lets at least
extract the maximum possible
price from those willing to buy it.
We havent exhausted the ability
or desire of foreign nationals to
pay for UK property. Not to
extract the maximum price
through appropriate taxation is
simply throwing money out of our
already empty national coffers.
Carl Gombrich
Empty promises
Some investors leave their proper-
ties empty while we have an acute
shortage of housing in London.
Any tax which makes this less
attractive is fine by me. However,
the argument that a mansion tax
would hit too few homes and raise
too little money is itself also very
persuasive. Instead, we should
close the stamp duty loophole and
implement an annual carrying
cost on empty super-prime prop-
erties.
Mike Fitzroy
Speak your mind
The Forum is open for you to
take part. Got a sharp comment
on one of todays columns or
rapid response topics? Do you
have another subject relating to
business and the economy you
want to share your opinion on?
We want to hear your views.
Readers are invited to comment
on the web: cityam.com/forum;
by email: theforum@cityam.com;
and on Twitter: @cityamforum.
The best responses will be
reprinted in The Forum.
RAPID RESPONSES
DAN CORRY
BY ANTHONY J. EVANS
CITYA.M. 6 MARCH 2012
The Forum
T
OMORROW is
National FairFuel
Day, when people
will lobby MPs to
reduce duty on fuel. Its
a tricky issue for econ-
omists. Fuel duty
demonstrates the stan-
dard economic
response to a situation where social costs exceed
private costs. If the price of a gallon of petrol fails
to reflect the total cost of consuming such a pollu-
tant then economists propose a tax to close the
gap. It is called a Pigovian tax (after the English
economist Arthur Pigou). Gregory Mankiw, for one,
has made a reasonable case for joining the Pigou
club: an elite group of economists and pundits
who have publicly advocated higher Pigovian taxes,
such as gasoline taxes or carbon taxes.
It is elegant in theory, but also naive.
I drive a 2003 Toyota Corolla and wondered
what the optimum tax rate should be. According
to TerraPass.com my driving habits generate
around 5,000lbs of CO2 a year, which would cost
18.75 to offset. I then used the petrol bills calcu-
lator on thisismoney.co.uk to find that my annual
fuel bill is 1,160.31, of which just 465.14 is the
cost of fuel. VAT accounts for 193.39, and the
rest is duty.
Of course there are other externalities in addi-
tion to carbon emissions and fuel duty has existed
long before talk of a specific Pigou tax. But as the
graph (right) shows, existing fuel duty is 26 times
higher than the supposed externality.
There are a number of reasons why Pigou taxes
are naive. As economist Edward Lopez has point-
ed out, the knowledge of which things are good
or bad, in which circumstances of time and place,
and to what dollar amount, are beyond the reach
of anyone including policymakers; but even absent
the knowledge problem, the incentive problem
ensures that the enacted policies would be divert-
ed by compromise from what little we do happen
to know of the public interest.
Even if policymakers were able to calculate the
actual level of the externality (my calculations are
merely illustrative estimates), then how can we
trust them to apply it? Most advocates of
Pigovian taxes argue based on theory the idea
that an optimal Pigovian tax exists in theory is
sufficient grounds to attempt to apply it. But in
the real world there is simply no rational basis to
engage in such calculations. Call me a fatalist, but
the genuinely elegant solution acknowledges
what little we know, and how that situation is
ripe for abuse.
Anthony J. Evans is associate professor of
economics at Londons ESCP Europe Business
School. www.anthonyjevans.com
Email him at: anthonyjevans@gmail.com
Fuel duty makes little
sense as a carbon tax
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
ANALYSIS l Fuel duty exceeds the cost of carbon offsetting
600

(
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DIRECTOR OF CURRENCY RESEARCH, GFT
BORIS SCHLOSSBERG
facebook.com/fx360 twitter.com/fx360
fx360.com
The contents of this column are provided for general information purposes only. One should consider the appropriateness
of the information in light of their own objectives, financial situation or needs before trading. CD11UK.074.010612
Your faith in the
long-term outcome
of the moves
should not stop
short-term profits,
says Craig Drake
I
NSURER Admiral endured
choppy waters in 2011, seeing
its share price drop to a nadir
of 800p due to worries about
bans on referral fees and a profit
warning in the latter half of the
year. 2012 has seen better sailing,
but the company will need to show
signs that the increase in claims
has slowed if it is to prevent even
more investors from taking to the
lifeboats. Still, steady rises in earn-
ings and dividends make the shares
attractive on an income level,
which might help propel the shares
forward. IG Indexs price for
Admiral is 1,053.9p-1,057.1p.
Having announced a new chief
financial officer in Andrew Bracey,
Michael Page International will
release full-year earnings today.
Gross profits are expected to have
increased by 25 per cent to
553.7m. Having reported a con-
tinued slowdown in profit, particu-
larly in southern Europe, due to
the weak financial recruitment
market, the company is expecting
to make up the difference in the
emerging markets. It expects to
announce new office openings in
Colombia, Taiwan and Morocco.
CMC Markets price for Michael
Page International is 474.75p-
475.75p
Crude oil has surged since the
beginning of January. Raised ten-
sions between Iran and the West
combined with continued central
bank liquidity provisions have
pushed prices to levels last seen in
May 2011. This has helped to lift
BPs share price close to a 12-
month high. The stock also got a
boost yesterday following news
late on Friday that BP had agreed
a $7.8bn settlement with 100,000
plaintiffs. Although BP still faces
legal action from the US govern-
ment, some uncertainty over the
oil majors financial liability has
been removed. GFTs latest quote
for BP is 506p-506.1p.
Cobham, the aeronautics and
defence systems firm, reports
earnings this week with its share
price poised for take-off. The
shares have climbed steadily in a
trend channel since November
2011 and may be about to blast
through resistance and the years
highs at 194p. Positive signs from
technical indicators such as the
RSI and MACD also support a
potential break higher. Spread Co
offers Cobham at 191.89p-
192.37p.
Craig Drake
THE
TIPSTER
ADMIRAL
WILL HOPE TO
SAIL CALMER
SEAS IN 2012
Wealth Management| Trading
26 CITYA.M. 6 MARCH 2012
Papering over the
cracks for now
A
FEW months ago, many
market watchers were
measuring the time until a
full-blown disorderly
Greek default with an egg timer
rather than with a calendar.
However, the risk of a Greek
implosion and the risk that such
an event would drag the
European financial system down
with it has lessened over the
course of 2012.
That is, of course, not to say
that fundamental Greek prob-
lems have been resolved. Or even
addressed. The Hellenic Republic
is now some $1.3 trillion in debt
when all liabilities are taken into
account and will never repay this.
The country is a financial basket
case and no number of summits,
joint press conference and politi-
cal platitudes is going to change
this. Greek one-year bonds broke
an eye-watering 1,000 per cent yes-
terday, signalling an implied six
months until another default
technical or otherwise. However,
such a credit event now seems to
be much more manageable than
it did six months ago.
READY TO ACT
Following a second long-term refi-
nancing operation (LTRO2) last
week, the European Central Bank
(ECB) has demonstrated its will-
ingness to throw its weight
behind the European banking sec-
tor. The LTRO is not the same as
quantitative easing and does not
have the same objectives it is
not intended to increase bank
lending but to ease credit contrac-
tion.
PAST PERFORMANCE
Whether or not you believe that
this will make for long-term sta-
bility in Europe, it will continue
to provide support for European
financial equities. Witness the
equities rally across European
financials even those so-called
stigmatised banks which took up
the funding. To go long European
financials in the event of another
refinancing operation or indeed
another measure from the ECB
is not a vote of confidence in the
central banks policy, but simply a
wise trade based on past events.
CANADIAN DOLLAR SHOWS
SOME PROMISE, AS AUSSIE
DOLLAR HIT BY SLOWDOWN
T
HE RESERVE Bank of Australia
is expected to keep rates on hold
at todays meeting, but the news
may prove cold comfort for the
Aussie dollar-dollar pair as currency
traders become increasingly concerned
about the rate of economic growth in
the Asia-Pacific region. As this week
opened for trade, the Aussie was the
weakest link in the chain, trailing badly
behind both the euro and the dollar in
Mondays dealing action. The pair was
hobbled by news from China, where
conflicting data on the services sector
confused the market.
The official Chinese services pur-
chasing managers index (PMI)
declined sharply to 48.4 from 52.9,
while the HSBC PMI reading rose to a
four month high of 53.9 from 52.5.
Meanwhile, former head of Chinese
statistics Li Deshui stated that first
quarter figures in 2012 may be ugly
given the very high base rate of
growth last year. Chinese officials
expect the country to grow by 7.5 per
cent this year, markedly less than 9.2
per cent the previous year, as the
decade-long torrid pace of growth
begins to moderate.
The slowdown in China may already
be affecting Australias economy.
Australias own PMI services report
disappointed investors, printing at
46.7 against 51.9 the period prior. The
subcomponent data was weak as well,
with employment declining from 51.2
to 47.5, sales falling to 47.5 from 49.4,
and new orders plunging to 45.6 from
54.1 the previous period. The data
suggests that the Australian service
sector is slowing considerably and
this could contribute to lower GDP
growth in the first quarter of this
year.
Since the end of last year, the
Aussie has benefited greatly from the
massive decline in the euro-Aussie
dollar. With the Eurozone credit crisis
in full bloom, real money accounts
diversified into the Aussie dollar-dol-
lar, driving the pair higher over the
past few months. However, with
Eurozone credit problems stabilised
for the time being, the pair appears
be basing at the $1.2300 level and
any short covering rally in the cross
will likely keep the Aussie underper-
forming for the foreseeable future.
With China slowing, Aussies only
hope for a rally depends on continued
upside surprise from North America.
If the US recovery gathers momen-
tum, the concomitant rise in equities
should keep the risk trade in play and
provide fuel for further Aussie gains.
However, any disappointment in this
weeks US non-farm payrolls report
could trigger a steeper selloff on the
pair, pushing it below the key $1.0500
barrier.
One interesting way to play the
possible Aussie weakness could be
through the Aussie dollar-Canadian
dollar pair. With oil prices hovering
above $100 per barrel for West Texas
Intermediate crude, the Canadian
economy should see a boost from
higher energy prices. Meanwhile,
technically, the Aussie dollar-Canadian
dollar looks like it has set a double top
near the Ca$1.0700 level. If this is the
start of the turn in the Australian dol-
lar then the Aussie dollar-Canadian
dollar could unwind all the way to
parity over the next several months,
as the combination of lower growth in
Asia and higher energy prices in North
America opens the way for Canada to
outperform Australia.
The ECB has had some success in covering up problems Picture: GETTY
ANALYSIS l Lower double top in Aussie dollar-Canadian dollar suggests more downside ahead
Source: GFT
2011 May Apr Jun Jul Aug Sep Oct Nov Dec 2012 Feb
1.0700
1.0600
1.0000
1.0500
1.0400
1.0300
1.0200
1.0100
0.9900
Ca$
Wealth Management | Trading
28 CITYA.M. 6 MARCH 2012
T
HE IPC trader cockpit is an
intriguing piece of design. It
integrates video streaming,
voice and video calling and
the ability to set up automatic fil-
ters depending on the big market
news that the system picks up at
the time. It is clean-looking com-
pared to some more Heath
Robinson setups and looking at it,
you cant wait to give it a whirl. The
problem is that it doesnt exist and
IPC Systems, the company that has
been demonstrating the concept,
has no plans to develop such a sys-
tem.
WHAT COULD BE
IPCs Trader Cockpit is designed as
a proof of concept, to aid head
traders and IT strategists and archi-
tects to visualise how social net-
working, video, voice and trading
applications can be integrated to
maximise trading floor productivi-
ty, says Simon Jones, senior product
marketing manager at IPC Systems.
Although a concept, all of the tech-
nology shown in the Trader Cockpit
is available and credible, though
typically not yet deployed on the
trading floor the conversion of an
audio feed to text for instance, is
most often seen in the call centre
industry. The Trader Cockpit looks
ahead to the changing communica-
tions needs and expectations of
traders, says Jones. It is proving a
great aid for stimulating challeng-
ing conversation within our cus-
tomers presenting a set of
concepts to gain alignment between
traders and IT managers as they
plan their future trading floors.
DIY
Though not yet available on profes-
sional trading floors, there is no
reason why you cant take a look at
the IPC concepts and implement
them at home. One of the biggest
things holding back trading floor
setups are the compliance and
bandwidth considerations for IT
managers. Bloomberg TV is avail-
able for free online and filters can
easily be applied to your news feeds.
For retail traders, the key thing to
take away from the concept is the
cleanness of the setup visually
attempt to replicate this on your
home trading PC.
FOREX STRATEGIST
JOEL KRUGER
My pick: Sell dollar-yen above 81.00, stop-loss on close above 82.50
Expertise: Technical analysis
Average time frame of trades: 1 day to 1 week
Although we are in the process of a major structural shift, with the mar-
ket looking to carve a longer-term cyclical bottom after record lows back
in October, the latest surge has been quite intense, leaving shorter-term
daily studies well overbought. Daily RSI recently peaked at its highest
level in over ten years. We are finally starting to see signs of some pull-
back and contend that short-term risks are for additional weakness
before the market resumes its newly-adopted uptrend. Target 78.00.
ANALYST PICKS
Tradingscreen of the future
STRATEGIST
ILYA SPIVAK
QUANTITATIVE STRATEGIST
JOHN KICKLIGHTER
The concept from IPC demonstrates what could be done, writes Craig Drake
What your screen could look like Picture: IPC
My pick: Sell S&P 500 (pending)
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
Last week resolved two sources of uncertainty in the macro landscape.
The second three year European Central Bank LTRO delayed the chance
of a Eurozone-driven credit crisis for at least a year, and Ben Bernankes
congressional testimony validated stronger US data with clues that QE3
is unlikely. The spotlight returns to fundamental considerations, where a
growth slowdown is expected in 2012. That should weigh on the S&P
500 and I will look to enter short on a daily close below 1,358.60.
My pick: Short S&P 500, long euro-Swiss franc and dollar-yen
Expertise: Fundamental and technical analysis with risk
Average time frame of trades: 1 day to 1 week
I continue to carry forward my two longer-term positions: long dollar-
yen and euro-Swiss franc. After the formers massive rally, its worth
moving the stop up to 80. The euro-Swiss franc is waiting on either
Swiss National Bank action or a seismic shift from the market. In the
meantime, I want to prepare for any major swells in volatility in the near
future. There are lots of risk-sensitive setups, but an S&P 500 channel
break below 1,350 would headline.
IPCs tech
trends to look
for in 2012
lExponential increases in amount of
data (Big Data) to analyse in sup-
port of trade decisions.
lAdvanced financial instruments
and increased government regula-
tions driving more complex trading
workflows.
lAlgorithmic trading and electronic
trading leading to more frequent
trades and less natural liquidity.
lTraders being pulled into more
parts of the trading workflow
research, analytics, customer rela-
tionships.
lConsumerisation of tech, and
uptake of sentiment analysis of
Twitter for trade support.
lTraders are being asked to do
more with fewer people supporting
the trade workflow.
Overall, the trader desktop environ-
ment is relatively closed and has not
kept pace with advances available to
enterprise.

HEAD SOMMELIER AND MANAGER OF
LUTYENS RESTAURANT
ANDREW CONNOR
QUAFFERS CORNER
Something more
than Sauvignon
W
E settled into our indecently
capacious seats, placed our
drinks on the sidetables and
leaned back, sighing with satis-
faction. This was certainly the First Class
cabin of cinemas: leg room enough for a
couple of giants; an array of buttons for
seat adjustment and waiter-summoning
and, of course, a substantial food menu
masterminded by one of the UKs best
chefs: Rowley Leigh, of the next-door Caf
Anglais. The film was Roman Polanskis
Carnage, but I was more taken by the deliv-
ery of champagne cocktails during trailers,
the power vested in me to order a glass or
three of Mendoza Malbec and the array of
nibbles.
Theres no doubt about it: luxury cinema
that gives you dinner and a movie in one
(or at least, very posh snacks, cocktails and
a movie in one) is where the upwardly
mobile, trendy dating set are headed.
Odeon is leading the charge with the
Lounge; meanwhile, its Swiss Cottage cine-
ma, an eyesore of a 1930s building if ever
there was one, has just completed a mas-
sive overhaul. As well as adding an Imax
screen, it has turned the formerly boarded
up Screen Six into a bar serving Dom
Perignon and salmon blinis.
Independent cinema groups were the
first to cash in on our desire to wine and
dine (as opposed to just scoff), reclined on
two-seater sofas. The Everyman cinemas
led the way with snazzy sofas, huge seats
and inflated prices (12 for the absolute
cheapest, non-member seats). They also
have waiter service in some screens (nib-
bles and drinks, as opposed to dinner). At
the Electric in Notting Hill (one of the UK's
oldest working cinemas), movie-goers
queue up at an in-cinema bar for spinach
and feta tart, pork belly and pinot noir
before settling into big red armchair-style
seats in an Edwardian Baroque room. At
the Ritzy in Brixton, several buzzing bars
and eateries provide gourmet snacks and
good beer and wine to take into your film:
nightlife blends seamlessly with move-
watching. The Firmdale Group of hotels,
which owns the Haymarket, Soho, Covent
Garden and Charlotte Street hotels in
London and The Crosby Street Hotel in
New York, hosts cinema clubs where you
can eat the likes of Mediterranean vegeta-
bles and spiced cous cous with haloumi
before watching a movie in a plush red seats.
Perhaps the trendiest of the lot is the Aubin
Cinema at Shoreditch House, though youll
have to content yourself with honeycomb,
wasabi peas and Prosecco rather than a three-
course meal.
The Lounge at Whiteleys ups the ante,
though: when it comes to Londons love affair
with gastro-cinema, it is the highest-profile
launch by far. After all, Rowleigh Leigh is a big
deal, and heres how he wants your night to
go.
First you should stop off in the lounge bar
a purply cocoon of big sofas and drinks tables
(the kind of place Austin Powers might be
found). I took very kindly to The French, a ver-
sion of the champagne cocktail, finding the
house Reynier Brut a bit acidic (but at 10, you
cant really complain). Cocktail lovers might
also like the Odeon: Courvoisier cognac stirred
over ice with a spiced port reduction and
orange bitters.
Once through and in your thrones (dont
expect to canoodle: the space between seats is
too great), you can start having fun with the
call button. Somehow, the quiet delivery of
food and drink doesnt interfere or disrupt
nor was I aware of slurping noises, so go forth
shamelessly.
The menu is divided into Finger, Fork and
Spoon: cute though this is, the food is far from
exquisite and certainly not of the calibre you
can get next door at the Caf Anglais. From
Finger, we sampled salsify fritters with aioli
and fried squid both a bit greasy and rub-
bery. I also had some fairly dismal tuna nigiri
tiny strips of fish on big badly cooked wads
of rice. More enticing was hot dog with
onions, popcorn and a lemon grass and ginger
ice cream soda. From Fork we tried venison
chilli hearty though not instantly reminis-
cent of deer. Butternut squash risotto with
sage and parmesan might have been a good
way to go. Or fish and chips, though still more
batter didnt appeal. We were full up but
dessert can be arranged: sticky toffee pudding;
a version of afternoon tea; banana split.
The Lounge is a brilliant place for a date and
has set the bar high in the world of gastronom-
ic cinema-going. Perhaps too high: its the
drinks, the comfort and the idea of it all that
trumps any culinary pretension, much like on
a plane. As I said: this is the first class cabin of
cinemas, not necessarily the Michelin-starred
of them. Tickets 18 excluding food and drink.
ODEON Whiteleys The Lounge, Whiteleys of
Bayswater, W2 4YL. To book: call 0871 22 44 007 or go
to www.odeon.co.uk/thelounge.
Rowley Leighs The
Lounge at Whiteleys
Odeon heralds a new
era, says Zoe Strimpel
The rise of gourmet cinema
Top: A burger
at the Lounge;
the seats
complete with
call buttons
in this first
class of
cinemas.
Lifestyle
LOTIONS AND POTIONS
TO GET YOUR SKIN
READY FOR SPRING
ON PAGE 30
29
W
ITh spring on the way, my thoughts
have turned to warm weather wines.
But I wish people would think outside
the Sauvignon Blanc box. If you like
SB, shake it up a bit with these grapes:
Albario: When I started my career in London
in the late 90s this was just starting to make an
appearance on wine-lists; its now relatively easy
to find. A grape grown in Galicia, in the extreme
North-West of Spain, it has a charming, stone-
fruit, citrus and floral character and is nice and
dry with fresh, zippy acidity.
Verdejo: Rueda, in Northern Central Spain, is a
source of great wines made from Verdejo. It has
some of the exotic fruit character that
Sauvignon often shows in the New World, like a
fruit salad of passionfruit and mango but with-
out the accompanying grassiness and green cap-
sicum flavours. So if you like your Sauvignon
fruity, give it a try.
Verdicchio: On the Adriatic coast of Italy the
two subzones of Matellica and Castelli di Jesi
(the latter is generally easier to find in the UK)
are the areas of production for Verdicchio (ch in
Italian is pronounced hard, like a k). It has a pro-
nounced citrus quality, grapefruity with a floral
note, that reminds me of the leaves that come
still attached to posh lemons. It also has a kind
of subtly salty, saline quality that makes it a fan-
tastic match with seafood.
Scheurebe: The Silvaner I wrote about in my
last column is well worth a try for Sauvignon
lovers but the rather more obscure German
grape Scheurebe is also worth seeking out. It is
a cross between Riesling and Silvaner and has a
pink grapefruity and exotic fruit quality along
with some floral and herbaceous notes that isnt
a million miles from Sauvignon though generally
not quite as dry.
Finally, I cant talk about spring/summer
drinking without beating my chilled red drum. If
you like your Sauvignon green and herbaceous
why not try a chilled Cabernet Franc?
Something like a light Chinon or Bourgeuil
makes fabulous, and versatile, summer drinking
while keeping the red wine drinkers happy too.
Follow Andrew on Twitter @LutyensWine
THE AUBIN CINEMA
The Shoreditch House cinema is open to the public: its
a 45-seat theatre with velvet chairs and a tasty snack
bar. The one odd thing about it is that its within an
Aubin and Wills concept store A&W is the more
grown-up arm of Jack Wills. 10 (regular seat); 24
(deluxe two-seater). Discounts for members of
Shoreditch House. www.aubincinema.com
FIRMDALE HOTELS
The owners of the Covent Garden, Soho and Charlotte
Street Hotels have endowed these three swanky
London outposts with plush screening rooms. Their
weekend cinema clubs are open to the public and
show a range of current films. Guests dine beforehand.
Three courses and the movie costs 35 per person.
www.firmdale.com
THE EVERYMAN
Of the Everyman Cinemas, our favourite is Hampstead:
tucked away in what was once the Hampstead Drill
Halls and Assembly Rooms in the 1880s. The bar serves
a solid range of good wine and snacks, from olives to
chocolate cake, for taking through. Some screenings
have waiter service. www.everymancinema.com 12-
30 (for a two-seater sofa, called a club suite).
THE ELECTRIC
During WWI, this 1910, Grade-II listed building was
attacked by mobs that thought that the German-born
manager was signalling to Zeppelin raiders from the
roof. In the 1990s it was bought by a local developer
and relaunched as a bastion of cool; both mainstream
and arthouse. Foodwise its got the best cinema nibbles
in town. 13, www.electriccinema.co.uk
WHERE TO WINE AND DINE WHILE YOU WATCH ZOE STRIMPEL
Scrub and smooth with these natural and luxurious products, says Zoe Strimpel
Lifestyle | Beauty & Grooming
30 CITYA.M. 6 MARCH 2012
Episode 48: Noels birthday party plans
Noel lies in bed, staring up at the constel-
lations of stars glowing in the dark on the
ceiling above him. Recent bedtime stories
have whizzed us through child-friendly,
abridged nineteenth century classics:
Frankenstein, Jekyll and Hyde, Dracula
and most recently, Treasure Island, as
much for my ill-read benefit as for Noels.
And tonight, weve just returned to
England aboard the Hispaniola, laden
with pirate gold.
Daddy, can I ask you a question?
You just did darling. Noel turns his
attention from the stars to me.
No I didnt. Anyway daddy, can I have
a Treasure Island birthday party?
I usually consider birthday parties to
fall within Emmas purview. But Ive been
enjoying our bedtime stories together
and so, innocently, I embrace the
moment.
Yes, why not? Unless mummy has
something else planned. What would you
do? At a Treasure Island party?
Pirates, rasps Noel, wide-eyed, loom-
ing towards me.
You could be Jim Hawkins, I suggest.
Dont be silly daddy. Im Long John
Silver.
But hes a baddy. Why dont you
You can be Benn Gunn, squeals Noel.
And grow a long, crazy white beard and
wear a torn, raggedy old towel around
you and nothing else. And we can all sing
yo-ho-ho and a bottle of rum. Could you
build a pirate ship daddy? At the week-
end? Me and Billy, we could help you.
Noel. Its time to sleep.
But daddy
Shhh. Even pirates have to sleep. Lets
talk about it with mummy in the morn-
ing.
Okay daddy. I love you.
I love you too darling. Goodnight.
I step out of Noels bedroom, just as
Emma emerges from the twins bed-
room.
Noel says he wants a Treasure Island
party.
Pirates? Yes, says Emma. We were
talking about it at dinner.
Oh, I reply. Seems Im to be Benn
Gunn. City Dad will continue in next
Tuesdays Lifestyle Section.
CITY DAD
FIT IN
THE CITY
BY LAURA WILLIAMS
FITNESS & DIET EXPERT
Trick your body
into dropping a
dress size
I
F youre having trouble shedding those win-
ter pounds, try these tips for getting the ball
(and the fat) rolling.
Get scribbling
Carry a notebook with you for a week and
write down every morsel that passes your lips
studies show that you wind up eating 15 per
cent less if you write down what you eat.
Go low cal content/high cal taste
Every day, treat yourself to something luxuri-
ous that tastes more sinful than it actually is: a
tablespoon of whipped cream over fruit salad,
a stack of king prawns, or splash out on some
lobster. Its high protein content helps with the
building and repairing of the body's tissues,
while Omega 3 Fatty Acid helps with every-
thing from lowering blood pressure to boost-
ing brain health.
Rediscover your thin friends
Harsh but true: researchers from Arizona
State University discovered that the fatter a
woman's social circle, the more likely she was
to be obese herself. Its thought that friend-
ships based on eating are more likely to end
in obesity. The solution? Lose the curry din-
ners and hit the salsa with your pals.
Stack up those steps
Treat yourself to a half decent pedometer and
watch that morning muffin walk itself off. A
Stanford University study found that pedome-
ter users increased their physical activity by
about 27 percent with all participants drop-
ping a few pounds. Regular pedometer use
saw their blood pressure drop too.
Sort snacking with a spray
FULLfast is a new appetite control spray that
contains 5-HTP, an amino acid which helps
with both mood swings and hunger pangs. An
efficacy study relating to FULLfast published
in the International Journal of Obesity in
September 2009 found that the spray
improved the success of a low-calorie diet by
reducing hunger cravings. Available from
www.fullfastonline.co.uk and all branches of
Harvey Nichols.
www.laurawilliamsonline.co.uk
Out with the old skin and
in with the new for spring
LOSING YOUR HAIR?
IT CAN BE RESTORED!
THE WIMPOLE CLINIC
Ha nna h Hous e , 1 1 - 1 6 Ma nc he s t e r S t r e e t , L ond on W1 U 4 DJ
At The Wimpole Clinic, one
of the leading hair transplant
centres in Europe, Dr. Michael
May F.R.C. S. has pioneered
a permanent solution to
male pattern baldness using
advanced follicular unit
hair transplant techniques.
For your FREE consultation
with Dr May call today on:
020 7935 1861
www. wi mpol ec l i ni c. c om
SIMPLY DIVINE BOTANICALS:
HONEY I SHRUNK MY PORES
34, glowgetter.co.uk
Yummy, almost edible products:
in this honeyish exfoliator, green
papaya and raspberries help
open, deto and smooth skin.
SHU UEMRURA: PHYTO-BLACK
LIFT RADIANCE BOOSTING
LOTION
34, www.shuuemura.co.uk
A super-light boost for that win-
ter skin with black tea ferment,
black sugar and AHA complex.
KATE SOMERVILLE:
EXFOLIKATE INTENSIVE
EXFOLIATING TREATMENT
80, uk.spacenk.com
Celebrity facialist Somerville has
created the ultimate skin polish and
deep-clean. Expect to glow.
SARAH HAPP: BROWN SUGAR
LIP SCRUB
19, beautyworkswest.co.uk
Dont neglect your smackers:
brown sugar mixed with jojoba and
grape seed oils slough off dead
cells and leave lips smooth.
PRTTY PEAUSHUN: SKIN
TIGHT BODY LOTION
39, www.prttypeaushun.com
This is what you use if youre off
to a beach in Brazil: light reflect-
ing particles make your skin look
cellulite-free and glowing.
RODIN: OLIO LUSSO
LUXURY BODY OIL
68, liberty.co.uk
City A.M.s top treat for the body,
this warm, golden oil smells of
health and will soften your win-
ter-hardened skin right up.
OMOROVICZA: GOLD SUGAR
SCRUB
57, beautyworkswest.co.uk
The cult Hungarian skincare
companys Vitamin C-jammed
sugar scrub takes off dead cells
and smells lovely as it does so.
SISLEY:
ENERGIZING
FOAMING
EXFOLIANT
68,
uk.spacenk.com
Essential oils,
botanical extracts
and microbeads
combine to form
a gentle but vig-
orous exfoliant.
KYUKO FOR MEN:
EXFOLIATING
FACIAL SCRUB
19,
mankind.co.uk
Volcanic ash, wal-
nut shells and rice
brand and adzuki
bean powder are
among ingredi-
ents in this pow-
erful, vitamin-rich
scrub.
T
E
R
R
E
S
T
R
I
A
L
LIVE FA CUP FOOTBALL
ITV1, 7.30PM
Birmingham City v Chelsea (Kick-off
7.45pm). Coverage of the fifth-round
replay at St Andrews. Subsequent
programmes are subject to change.
BIG FAT GYPSY WEDDINGS
CHANNEL4, 9PM
Travellers who have found romance
outside their community, including a
cage fighter whose family is unhappy
about his relationship with a model.
NAZI TITANIC: REVEALED
CHANNEL5, 8PM
The historical documentary strand
returns with the story of the 1943
Nazi propaganda movie Titanic, which
retold the infamous disaster.
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmSoccer Special 10.15pm
Special Report 10.45pmRevista De
La Liga 11.45pmSky Sports
Classics 12amUEFA Champions
League Highlights 1amFootball
Asia 1.30amRevista De La Liga
2.30amFootballs Greatest
Managers 3amUEFA Champions
League Highlights 4amFootball
Asia 4.30amRevista De La Liga
5.30am-6amFootballs Greatest
Managers
SKY SPORTS 2
7pmLive UEFA Champions League:
Arsenal v AC Milan (Kick-off
7.45pm). 10.15pmPoker 12.15am
Golfing World 1.15amSunshine
Tour Golf 2.15amPoker
4.15am-5.15amPool
SKY SPORTS 3
7pmFIBA Basketball 7.30pm
International One-Day Cricket: The
Commonwealth Bank Series Final.
9.25pm-5amLive Test Cricket
BRITISH EUROSPORT
6.30pmBiathlon 7.30pmCycling
8.30pmStrongest Man 9pm
Boxing 10pmWorld Superbikes
11.30pmWorld Touring Car
Championship 12am-12.30am
Cycling
ESPN
5.30pmTennis 8pmPremiership
Rugby Union 9.30pmFrench Top 14
Rugby Union 10pmESPN Kicks:
Scottish Premier League 10.15pm
ESPN Kicks: Serie A 10.30pm
Eredivisie Review Show11.30pm
Press Pass 2012 12amRussian
Premier League Review12.30am
FIS Alpine Ski World Cup Report
1amPlanet Speed 1.30amLive
NBA Basketball 4amSerie A
Rivals 4.30amPress Pass 2012
5amESPN Game of the Week
5.30amESPN Kicks: Premier
League 5.45am-6amESPN Kicks:
Scottish Premier League
SKY LIVING
7pmCriminal Minds 8pmThe
Biggest Loser 9pmUnforgettable
10pmCriminal Minds 11pmBones
12amCSI: Crime Scene
Investigation 1.50amMaury
2.40amMedium3.30amBones
4.20amNothing to Declare UK
4.45amNothing to Declare
5.10am-6amJerry Springer
BBC THREE
7pmTotal Wipeout 8pmDont Tell
the Bride 9pmJunior Doctors: Your
Life in Their Hands 10pm
EastEnders 10.30pmPramface
11pmFamily Guy 11.45pm
American Dad! 12.30amJunior
Doctors: Your Life in Their Hands
1.30amFILMKevin and Perry Go
Large 2000. 2.45amDont Tell the
Bride 3.45amPramface
4.15am-5.15amRiots and
Revolutions: My Arab Journey
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8.30pmRules of
Engagement 9pm90210 10pm
The Cleveland Show10.30pmNoel
Fieldings Luxury Comedy 11pm
Ricky Gervais: Science 12amThe
Big Bang Theory 1amScrubs 2am
Balls of Steel Australia 2.25am
How I Met Your Mother 3.15am
Rules of Engagement 3.35amGreek
4.20amUgly Betty 5am-6am
Switched
HISTORY
7pmStorage Wars 7.30pmPawn
Stars 8pmAmerican Pickers 10pm
Seeking Salvage 11pmUFO Hunters
12amStorage Wars 12.30am
Pawn Stars 1amSeeking Salvage
2amUFO Hunters 3amOnly in
America 4amThe True Story
5am-6amAmerican Pickers
DISCOVERY
7pmBear Grylls: Born Survivor
8pmWhale Wars 9pmSwords:
Life on the Line 10pmReal Prison
Breaks 11pmWorlds Toughest
Prisons 12amBear Grylls: Born
Survivor 1amSwords: Life on the
Line 2amReal Prison Breaks
3amWheeler Dealers
3.50amMythbusters 4.40amChris
Barries Massive Machines
5.30am-6amDestroyed in Seconds
DISCOVERY HOME &
HEALTH
7pmSupernanny US 8pm21st
Century Dad 9pmMystery
Diagnosis 10pmBaby ER 11pmI
Didnt Know I Was Pregnant 12am
Mystery Diagnosis 1amBaby ER
2amI Didnt Know I Was Pregnant
3amSupernanny US 4amA Baby
Story 5am-6amBaby Tales
SKY1
7pmGot to Dance: Final 8.50pm
Got to Dance: Results 9.30pmA
League of Their Own: With Karen
Pickering and Jimmy Carr. 10pm
FILMOut for Justice: Action
thriller, with Steven Seagal. 1991.
11.45pm35mm12.15amDog the
Bounty Hunter 12.45amThorne:
Scaredy Cat 1.45amUK Border
Force 2.45amRoad Wars 4.35am
Bondi Vet 5.05am-6amDream
Lives for Sale
BBC2 ITV1 CHANNEL4 CHANNEL5
S
A
T
E
L
L
I
T
E
&
C
A
B
L
E
TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmEastEnders: BBC News
8pmHolby City
9pmPrisoners Wives
10pmBBC News
10.25pmRegional News;
National Lottery Update
10.35pmRacing with the
Hamiltons: Nic in the Driving Seat
11.30pmWho Do You Think You
Are? US 12.15amThe Celebrity
Apprentice USA 1.35am
Weatherview1.40amSign Zone:
Worried About the Boy 3.10am
Sign Zone: An Island Parish
3.40am-6amBBC News
6pmEggheads
6.30pmMy Life in Books
7pmRaymond Blanc: The Very
Hungry Frenchman: The chef
concludes his culinary journey
in Provence. Last in the series.
8pmAlex Polizzi: The Fixer
9pmHorizon: Solar Storms
The Threat to Planet Earth
10pmNever Mind the
Buzzcocks
10.30pmNewsnight: Weather
11.20pmRubicon
12.05amRubicon
12.55amBBC News
3.40amClose 4am-6amBBC
Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale: Declan tells
Sam that Zak has been fired.
7.30pmCHOICE Live FA Cup
Football: Birmingham City v
Chelsea (Kick-off 7.45pm).
10pmITV News at Ten
10.30pmLondon News
10.35pmBenidorm: The guests
take part in a dance contest.
Matthew Kelly guest stars.
11.35pmThe Cube
12.35amThe Zone; ITV News
Headlines
3amCrossing Jordan
3.50am-5.30amITV Nightscreen
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmSupersize vs Superskinny
9pmCHOICE Big Fat Gypsy
Weddings
10pmShameless 11.05pmRandom
Acts 11.10pmDesperate Housewives
12.10amPoker 1.10amSailing:
Americas Cup Uncovered 1.35am
KOTV Boxing 2amLate Night Poker
2.55amThat Paralympic Show
3.25amParalympic Wheelchair
Rugby GB Cup 2011 4.20amRoad
to London 2012: Paralympics Extra
5.15am-6.10amFull Metal
Challenge
6pmHome and Away
6.30pm5 News at 6.30
7pmEddie Stobart: Trucks and
Trailers: 5 News Update
8pmCHOICE Nazi Titanic:
Revealed: 5 News at 9
9pmBody of Proof: A
socialites death raises
suspicions. Last in the series.
10pmCSI: NY
11pmCSI: Miami
12amCSI: Crime Scene
Investigation
12.55amSuperCasino
3.55amHouse Doctor 4.20am
Wildlife SOS 5.10amMichaelas
Wild Challenge
1 2 3 4 5
6
7 8
9
10 11
12
13 14
15
16
17
18 19
23 35
45
3 10 17
9 11
6 8 12
26 11
5 10 13
12 14
9 6 16
45
34 9
13
9
22
41
11
16
7
11
18
4
7
15
33
24
9
8
12
14
7
19
39
15
6
29
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 Gasps for breath (5)
4 Weep (3)
6 Relating to them (5)
7 African antelope (5)
9 Sufered something
unpleasant (5)
10 Ailment (7)
13 Abominate (7)
15 Pair of game
birds (5)
16 Construct (a
building) (5)
17 Give rise to (5)
18 Gaming cube (3)
19 Small natural hill (5)
DOWN
1 Expert in a particular
eld who often presents
views to the media (6)
2 Money risked on
a gamble (5)
3 Graves (5)
4 Reticent (9)
5 Digestive juice secreted
by the liver (4)
8 Sum granted as
reimbursement for
expenses (9)
11 Catch sight of (3)
12 Relating to the teeth (6)
13 Correct errors in computer
program code (5)
14 Glossy, smooth (5)
15 Lacking hair (4)
N
I
M
A
T S
B
R
E
4








C H O R D S T E A M
A C A C L U
R E C O M M E N D E D
D U P N E D
S O R T Y E A R L Y
U H E L O
S T R E S S L A W S
O O C B L W
C O M P A R A T I V E
K A L G K P
S E N S E S P E N T
2 1 5 5 3 8
3 7 8 9 7 5 9 8
2 9 8 5 1 4 2
1 5 1 5 4
4 1 2 8 9 8 9
9 3 4 1 7 6 2 5 8
6 1 3 6 8 5 9
5 4 9 2 1
1 8 2 3 2 7 9
7 9 6 8 5 1 3 2
6 1 2 8 3 6
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
ABDUCTING
Lifestyle | TV&Games
31 CITYA.M. 6 MARCH 2012
S
INCE Tiger Woods surrendered
his position as golfs dominant
force the world No1 ranking
has been something of a hot
potato; that is until now, for I believe
Rory McIlory has the game and men-
tality to dominate the sport for a
decade.
Lee Westwood, Luke Donald and
Martin Kaymer have all deservedly
risen to the summit at different
points over the last 18 months but,
as I indicated last week, McIlroys
ascent feels different this is very
much a changing of the guard.
Its almost been overlooked as a
result of the fanfare that has greeted
his elevation to world No1, but
McIlroys victory at the Honda
Classic in Florida was a magnificent
performance that demonstrated just
why his stay at the top of the sport is
destined to be a lengthy one.
The sight of Woods, whose final
round of 62 confirmed he had found
the remedy to the swing troubles
that hindered him last month, hunt-
ing down the leader was once the
most ominous spectacle in golf, but
McIlroy was completely unfazed and
produced several tremendous up
and downs to get the job done.
BURST ONTO THE SCENE
Its that sort of calmness and sereni-
ty of thought under pressure that
suggests McIroy is well equipped to
remain unaffected by the extra focus
and attention that accompanies his
new position.
Kaymer admitted last year that he
found the extra trappings and expec-
tation difficult to cope with.
But whereas he was probably
taken aback by the rapidness of his
progression, McIlroy has the benefit
of being groomed and prepared for
this level of stardom ever since he
burst onto the scene as a 17-year-old
amateur at the 2007 Open at
Carnoustie.
Should he need any extra advice
on how to handle the enhanced spot-
light, the US Open champion is in
the pretty unique position of being
able call upon the insight of his
other half Caroline Wozniacki, the
former womens tennis No1, and Im
sure that will help him because his
life is about to change in a big way.
PEAK OF HIS ABILITIES
McIroy has always had the all round
game to threaten this sort of break-
through but over the last 18 months
the change in his physical condition
has been startling and a key factor in
the astonishing level of consistency
he has been able to maintain.
Woods led the way in that respect
when he dominated the sport and
Rory has clearly heeded the
Americans example.
Making the sort of lifestyle sacri-
fices that mean he no longer carries
a bit too much weight around the
middle has clearly benefited his
game.
As long as he remains disciplined
in that respect he will hold a signifi-
cant advantage over the chasing
pack.
McIlroy is only the 16th man in 24
years to become world No1 and to
have done so at the age of just 22 is
an astonishing accomplishment.
However, Im confident hes still
some way from reaching the peak of
his abilities.
SPECIAL WEEK
Its also been a pretty special week
for me after I was informed I was to
receive a Scottish Golf Lifetime
Achievement Award.
Its lovely and to be recognised in
that way after dedicating so much of
my life to the sport I love.
Sam Torrance OBE won 21 European Tour
titles and is a former Ryder Cup captain.
Follow Sam on twitter @torrancesam
Sport 32 CITYA.M. 6 MARCH 2012
New world No1 McIroy can
dominate golf for a decade
McIlroy became the 16th player in 24 years to occupy the world No1 spot with victory in Florida on Sunday Picture: GETTY
BRITAIN will have a chance of gold in
rhythmic gymnastics for the first
time at London 2012 after the team
successfully appealed to be selected
for this summers Games.
Independent arbitrator Sports
Resolutions UK ruled yesterday that it
was not convinced the team knew
that only their performances on the
first two days of Januarys test event
would count.
The team successfully achieved the
qualifying standard on the third day
of the competition at the O2, but
later discovered to their dismay that
their achievements had come too late
for British Gymnastics.
The verdict means that British
Gymnastics will now nominate the
team to the British Olympic
Association, who can now accept the
host country position offered under
the rules of the sports world govern-
ing body FIG. Subject to formalities,
it will result in a British rhythmic
gymnastics team competing at an
Olympics for the first time in history.
Arbitrator Graeme Mews said
British Gymnastics selection policy
was not well drafted and did not
unequivocally state that the team
had only a small window of opportu-
nity to qualify for London 2012.
Rhythmic gymnasts earn
a London 2012 reprieve
Results
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email sport@cityam.com
SPORT | IN BRIEF
Olympic Stadium open to public
OLYMPICS: The Olympic Stadium will
open its gates to the British public for
the first time on Sunday 1 April, cour-
tesy of Gold Challenge, the UKs only
Olympic and Paralympic based charity
challenge, as part of the arenas first
official test event.
Tancock set for London 2012
OLYMPICS: Former world record holder
Liam Tancock booked his spot on the
Great Britain team for London 2012 by
taking the 100m backstroke title at the
Olympic Aquatics Centre. Scotlands
Robbie Renwick also secured his Team
GB place after making the qualifying
time in the 200m freestyle.
Bent undergoes ankle surgery
FOOTBALL: Aston Villa and England
striker Darren Bent has undergone ankle
surgery and will not be able to resume
full training for another 12 weeks.
May 1989: Born in Holywood,
County Down, Northern Ireland
Jul 2007: Shoots opening round
three-under-par 68 at the 2007
Open Championship at Carnoustie,
his first Major championship. Cards
five-over-par overall and is the
highest finishing amateur, winning
the silver medal (inset below)
Sep 2007: Part of the Great
Britain & Ireland team which loses
the 2007 Walker Cup, after which
he turned pro
Oct 2007: Aged 17
becomes youngest
Affiliate Member
in the history of
the European
Tour to earn a
tour card after
finishing third at
the Alfred Dunhill Links
Championship
Feb 2009: Celebrates the first pro-
fessional win of his career at the
Dubai Desert Classic at the age of
19
May 2010: Now inside the worlds
top 10, he claims his first PGA Tour
title at the Quail Hollow
Championship, setting a course
record in the final round
Oct 2010: Secures a vital half-
point to help Europe regain the
Ryder Cup at Celtic Manor
Jun 2011: Less than
two montsh after
blowing a five-
shot lead at the
Masters he shat-
ters a host of
records to win the
US Open (inset right)
Mar 2012: Becomes second
youngest player to reach world No1
RORY MCILROY
CAREER TIMELINE
US Open champion
has the game and
mentality to keep
ahead of the rest
GOLF COMMENT
SAM TORRANCE
BY FRANK DALLERES
OLYMPICS

Sport
33 CITYA.M. 6 MARCH 2012
CHELTENHAM hero Kauto Star bid to
land a third Gold Cup next week is on
course after his trainer Paul Nicholls
issued an upbeat bulletin on the 12-
year-olds condition following last
weeks schooling accident which con-
tinues to threaten his participation.
The five-time King George VI Chase
winner was rated 50-50 following his
fall at Nicholls Somerset stables but
was reported to be heading in the
right direction after a solid workout
yesterday.
He had his physio and an hour on
the walker, as per usual. And then he
had a 10 furlong canter with Five
Dream. But, in addition to that, he
had a canter up the hill with the
same horse, said Nicholls of Kauto
Star, whose battle with 2011 Gold Cup
winner Long Run is set to provide the
highlight of this years Cheltenham
Festival.
We will keep adding to this work-
load and tomorrow he will do the
same, but have two canters up the hill
instead of one. Again, he is fine and
we are heading in the right direction
at the moment.
Owner Clive Smith said his
charges chances of featuring at
Cheltenham will depend on a D-
Day workout on Saturday, adding:
Im quite hopeful having talked to
various people that hell make it.
HORSE RACING

Nicholls upbeat
over Kauto Star
Cheltenham bid
IRELAND have suffered a potentially
shattering blow to their Six Nations
hopes after captain Paul OConnell
and scrum half Conor Murray were
ruled out of the rest of the tourna-
ment through injury.
OConnell (right) sustained
damage to his left leg during
Sundays thrilling 17-17 draw
with France in Paris which
left Ireland trailing table-
topping Wales by three
points with two games
remaining.
Murray, mean-
while, was
stretchered off at
the Stade de France
with a knee injury
and as a result Tomas
OLeary has been called
up as cover, while Connacht
forward Mike McCarthy has
been drafted in as a squad
replacement for OConnell
ahead of Saturdays match
against winless Scotland in Dublin.
In the absence of former British
and Irish Lions skipper OConnell,
not to mention Brian ODriscoll who
has missed the entire tournament,
hooker Rory Best is the favourite to
inherit the captaincy for the remain-
ing two matches of the competi-
tion.
Paul OConnell underwent a
scan on his left knee after twist-
ing it during the game, read an
Irish Rugby Football Union state-
ment. The scan has shown
that he has picked up an
injury to his medial collateral
ligament. The injury will also
rule him out of the next two
games.
Conor Murrays scan
r e v e a l e d
bone bruis-
ing in the
joint and
while there
has been no damage to his lig-
aments, the injury rules him
out of contention for two
games.
OConnell and
Murray injury
blows for Irish
BY JAMES GOLDMAN
RUGBY UNION

HOMECOMING: MORGAN RETURNS TO GLOUCESTER

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GLOUCESTER have confirmed England No8 Ben Morgan will join them from the Scarlets
at the end of the season. The 23-year-old made his international breakthrough in this sea-
sons Six Nations having been handed his debut in last months victory over Scotland at
Murrayfield. I grew up just down the road so Gloucester is my local team and I cant
wait to run out at Kingsholm for the first time. he said. Picture: GETTY
ALL ROADS LEAD TO
CHELTENHAM
Sport
34
ENGLAND head coach Stuart
Lancaster insists scrum-half Danny
Care still has a bright international
future despite his third alcohol-relat-
ed offence in the space of three
months.
Harlequins No9 Care was cautioned
early on Sunday morning in Leeds for
being drunk and disorderly after
being caught urinating in public.
Lancaster, who has known Care
since the players early days at Leeds,
admitted the 25-year-olds latest indis-
cretion was regrettable but believes he
remains a leading Test prospect.
It was another unfortunate inci-
dent that should have been avoided.
Ill be meeting him soon to discuss the
decisions he is making, said
Lancaster. I dont think he has got a
long-term problem and I want to give
him help to make the right decisions.
He has a bright future for England.
Care was frozen out of Englands
Six Nations squad by interim boss
Lancaster in January after admitting
drink-driving. Premiership leaders
Quins fined the player 10,000 and
ordered him to undertake work in
their community programme follow-
ing the incident, which also earned
him a 16-month driving ban.
That came just weeks after a sepa-
rate controversy that saw Care fined
for being drunk and disorderly.
Quins chief Conor OShea held talks
with Care yesterday and, despite con-
demning his latest indiscretion, prom-
ised the clubs full backing.
The situation Danny finds himself
in is unfortunate and is one that
could and should have been avoided,
said OShea. We have no intention of
doing anything other than support-
ing Danny and continuing to work
with him so he understands his posi-
tion and the decisions he makes.
The erratic form of Leicesters Ben
Youngs means Care would have had
the chance to stake his claim for a
starting place at the Six Nations, were
he available for selection. Instead his
Quins colleague Karl Dickson was last
night called up to the England squad
ahead of Saturdays Six Nations clash
with France, as Wasps No9 Joe
Simpson has a dislocated shoulder.
IRELAND SUFFER INJURY BLOWS: P33
Lancaster
backs Care
after third
drink arrest
Low emerges
as surprise
candidate for
Chelsea job
BY FRANK DALLERES
RUGBY UNION

Harlequins scrum-half Care was arrested

at the weekend Picture: GETTY
Arsenal manager Wenger Picture: GETTY
ARSENAL manager Arsene Wenger is
often mocked for his apparently selec-
tive memory, but the Frenchman is
urging his team to adopt the very
same trait as they attempt to mount a
titanic Champions League comeback
tonight.
The Gunners welcome AC Milan for
the second leg of their last 16 clash
knowing that must score at least four
times to have any chance of prolong-
ing their participation in Europes
top club competition.
Wounds from the 4-0 thrashing suf-
fered in Italy three weeks ago are still
fresh, despite encouraging wins over
Tottenham and Liverpool since, but
Wenger believes his players must
block out that trauma if they are to
achieve the improbable.
There is a real possibility that we
can go through. We lost 4-0 at Milan
but they had five shots on target and
we had 55 [per cent] possession when
we did not play well at all, he said.
The best way is to ignore the first
game and do what we did against
Tottenham [nine days ago]. We were
2-0 down and we just kept going
because we wanted to win the game.
In the last two home games we have
scored 12, so we know we can score
goals. That is the target tomorrow.
A gargantuan task is made even
more difficult by the absence of sever-
al first-team players, with Mikel
Arteta, concussed in Saturdays win
at Liverpool, one of several midfield-
ers injured. Abou Diaby, Yossi
Benayoun, Aaron Ramsey and Francis
Coquelin are also out, while Tomas
Rosicky faces a late fitness test, severe-
ly restricting Wengers options if he
sticks to his favoured 4-3-3 system.
Winger Gervinho and England
Under-21 star Alex Oxlade-
Chamberlain could start, while the
Arsenal manager gave short shrift to
suggestions top scorer Robin van
Persie might be rested for a seemingly
Spirit of Spurs has Wenger dreaming of
Germany boss in frame to replace Villas-Boas as
Eriksson declares interest and Benitez drops hint
BY FRANK DALLERES
FOOTBALL

(0)
(4)
ARSENAL
AC MILAN
GERMANY coach Joachim Low last
night emerged as a shock contender to
succeed Andre Villas-Boas as Chelsea
turned their attention to recruiting a
long-term replacement for the sacked
manager.
Low, one of the most highly-regard-
ed technicians on the continent, hav-
ing reinvigorated Germany as a force
since taking over in 2006, is said
to have held informal talks
about the job yesterday.
He took his country to
the final of Euro 2008 in
his first major tourna-
ment in charge and
continued to impress at
the 2010 World Cup,
where a youthful
Germany reached the last
four, humiliating England on the way.
The 52-year-old, whose contract runs
until 2014, won 10 games out of 10 in
qualifying for this summers European
Championship, where Germany are
among the favourites to win the tro-
phy.
Low is one of several urbane
European coaches thought to be in
Chelsea owner Roman Abramovichs
sights as he prepares for next season,
along with former Blues boss Jose
Mourinho and Barcelona coach Pep
Guardiola.
Mourinho has cast doubt on his
desire to remain at Real Madrid,
despite looking set to end their Catalan
rivals dominance in La Liga, and paid
a visit to London last week.
Guardiola is yet to commit to a new
contract at Camp Nou and fits
Chelseas criteria, although it is not
known to what extent the challenge of
overhauling an ageing Blues squad
appeals to the Spaniard.
Former England manager Sven-
Goran Eriksson (inset) unequivocally
declared his interest yesterday, how-
ever. The much-travelled Swede
has been out of work since leav-
ing Leicester in October and has
previously interested
Abramovich.
I would take it, of course,
said the ex-Manchester City boss.
They already have a manager for
the rest of the season and I guess that
is a natural solution, because he has
been in the club for the whole season.
Former Liverpool manager Rafa
Benitez was more coy but left the door
open for a switch to west London. He
said: I would like to have in the future
a top side, a top club that can fight for
titles and challenge.
Chelsea, who visit Birmingham
tonight in a testing FA Cup fifth-round
replay, have placed former assistant
Roberto di Matteo in charge for the rest
of the season as they attempt to salvage
a top four finish in the Premier League.
BY FRANK DALLERES
FOOTBALL

C
HELSEA owner Roman
Abramovich made the right
call in sacking Andre Villas-
Boas on Sunday after the man-
ager seemingly lost his way with the
players although things could get
worse before they get better.
The Portuguese appeared unable
to motivate them any more, which
means they were not happy with
something. To me it looks like he
was trying to teach old dogs new
tricks. That just does not sit with
guys who have already been very
successful; its a simple human reac-
tion. Villas-Boas also shot himself in
the foot with some poor team selec-
tions, while he proved unable to
transform Fernando Torres back
into a striker worth anything like
the 50m he cost Abramovich.
TAINTED BY ASSOCIATION
It has all left Chelsea facing an
uphill struggle to finish in the
Premier Leagues top four and quali-
fy for next seasons Champions
League. The players to a man are off
form and are nursing some dam-
aged egos; the team could barely be
in any more of a mess.
Roberto di Matteo has been
placed in charge until the end of the
season and he will have to do a very,
very good job indeed if he is to get
that top four place. I expect them to
carry on struggling, because the
danger with promoting from with-
in, as Di Matteo has been, is that it
can feel like nothing has changed.
New managers get a reaction from
the players, who want to impress
even Villas-Boas did when he first
joined but Di Matteo is not new.
He was part of that failed coaching
set-up and is tainted by association.
Long-term, I would love to see for-
mer Chelsea boss Jose Mourinho
return for another spell, although I
think he would find it far harder
this time. He has had big money to
spend at Real Madrid and he would
need the same at Stamford Bridge. I
cannot imagine him accepting a job
that was going to be more difficult
than his current role.
The bottom line is, however, that
unless the club qualify for the
Champions League Abramovich can
forget about luring back Mourinho.
TICKS ALL THE BOXES
I cannot see what Chelseas strategy
is in all of this. Imagine they lose
the next three matches: they will be
out of the FA Cup, further behind in
the league and out of Europe.
Would they sack Di Matteo?
A better short-term option might
be to hire an experienced manager
until the end of the season, as
Abramovich did so successfully with
Guus Hiddink three years ago.
His stock may have fallen but, the
more I think about it, the more
appointing former England boss
Sven-Goran Eriksson for the next
dozen games makes sense.
The Swede ticks all the boxes: he
knows the players, can deal with big
personalities and would take the job
under almost any circumstances. If
they offered him the job today he
would be there at 9 oclock tomor-
row morning.
Trevor Steven is a former England foot-
baller who played in both the 1986 and
1990 World Cups and the 1988
European Championships. He now
works as a talent scout and media com-
mentator.
35
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lost cause. We want to have a real go,
we want to make it possible, Wenger
added. It wouldnt be credible to say
we want to score five goals and then
leave Robin van Persie out. We wont
accept going out of the Champions
League because we want to stay in.
We will give it our best shot.
Only three times in European histo-
ry has a club overturned a four-goal
first-leg deficit, but Wenger hopes the
superior playing surface at Emirates
Stadium will aid his teams quest to
become the fourth.
If they can score four then we can
as well, why not? We will try, he said.
We know we can put a better per-
formance in and you can tell Milan
that tomorrow we will play on a foot-
ball pitch a real football pitch.
Arsenal miracle comeback
Svens a better bet than Di Matteo
Milan look to complete Italian job
AC MILAN arrive at Emirates
Stadium tonight looking
to protect their huge
first leg advantage
and in justifiably
confident mood fol-
lowing a convincing
victory over Palermo
at the weekend.
Zlatan Ibrahimovic
(right) hit a 13-minute hat-
trick in a 4-0 win that
moved the Italian cham-
pions three points clear
at the top of Serie A.
Milan are without for-
ward Alexandre Pato and veteran
midfielder Clarence Seedorf, but
former Liverpool star Alberto
Aquilani is poised to make his return
from injury.
Arsenal, meanwhile, may take
encouragement from the fact
that Milan hold the record
for the biggest first-leg
victory overturned in
the Champions
League, losing 4-0 at
Deportivo La Coruna
in the 2004 quarter-
finals, having won 4-1
at home.
There is still plenty to play for this
season, says Blues caretaker boss
CHELSEA caretaker manager
Roberto di Matteo has issued a ral-
lying cry ahead of tonights FA Cup
fifth round replay against
Birmingham at St Andrews.
The former Blues midfielder has
been placed in temporary charge
following the sacking of Andre
Villas-Boas on Sunday and took
charge of his first training session
yesterday.
The Italian has appointed his for-
mer Chelsea team-mate and assis-
tant at MK Dons and West Brom,
Eddie Newton, to his backroom
staff.
The duos first assignment will
be to plot a safe passage through
to the FA Cup quarter finals and Di
Matteo is confident his charges can
respond to the challenge of sal-
vaging Chelseas season.
We have to focus on the next
game, which is against
Birmingham. We have to try to win
the next game, which is how we
are going to be from now until the
end of the season we are going to
focus on game by game, he said.
Our duty now is to look forward
and to try to get the results that
we need in the league, the
Champions League and in the FA
Cup to have a good season.
Addressing the Chelsea fans, Di
Matteo added: I am one of them.
It hurts me to see our club in this
position.
I can give them my full commit-
ment to the end of the season, with
the passion I have for my job for
this club. It is has been a big part of
my life.
I will try to transmit this to the
players, they are all on board and
want to do well for us and we need
to show it on the pitch.
Di Matteo is sweating on the fit-
ness of left-back Ashely Cole who
is struggling with an ankle injury
while club captain John Terry still
out with knee damage.
FOOTBALL COMMENT
TREVOR STEVEN
Low took over as
Germany manag-
er in 2006
Picture: GETTY
MCILROY HAS THE GAME TO
STAY AT NO1 FOR A DECADE
SAM TORRANCE ON RORYS RISE TO
THE PINNACLE OF GOLF: PAGE 32
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