BUSINESS WITH PERSONALITY
HOW TO MAKE FAMILY
SKI TRIPS CHILD’S PLAY
Issue 1,321 Monday 14 February 2011
DAVIES REJECTS
GENDER QUOTAS
POLITICS
▲
BY MARION DAKERS
UK BOARDROOMS will not be forced
to recruit more women to top jobs,
after a government panel ruled out
imposing gender quotas, City A.M. can
confirm.
A report chaired by former trade
minister Lord Davies of Abersoch (pic-
tured) will not recommend a state-
imposed quota system to help break
up the male dominance of UK compa-
nies when it reveals its findings on 24
February, a senior committee mem-
ber confirmed yesterday.
The report’s authors, tasked by
business secretary Vince Cable
with boosting the number of
women taking directorships,
will instead call on companies
to do more on a voluntary
basis to attract more female
candidates, with the threat of
quotas as a last resort if num-
bers fail to improve.
It is expected to criticise
headhunters, chairmen and
institutional sharehold-
ers for failing to tackle
the problem sooner,
and push for
transparency
in firms’
b o a r d - l e ve l
recruitment.
But, as
one source
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Deal frenzy
as Nasdaq
eyes a role
▲
FINANCIAL MARKETS
BY RICHARD PARTINGTON
NASDAQ, the world’s second largest
stock exchange by market capitalisa-
tion, could become the latest bourse to
merge. The US exchange is said to con-
sidering its options following a flurry of
deals between rivals.
The New York Stock Exchange (NYSE)
said last week it was in advanced talks
with Germany’s Deutsche Boerse, only
hours after the London Stock Exchange
confirmed it had agreed to merge with
Canadian stock operator TMX Group.
NYSE’s board of directors met last
night to discuss the deal with Deutsche
Boerse, with an announcement on the
deal expected as soon as tomorrow.
US senator Charles Schumer yester-
day said he was told the management
team at NYSE would take control of the
The UK’s leading female chief executives include (left to right) Anglo American’s Cynthia Carroll; Imperial Tobacco’s Alison newly formed group.
Cooper; Alliance Trust’s Katherine Garratt-Cox; Burberry’s Angela Ahrendts (above); and Pearson’s Marjorie Scardino His comments could raise concerns
in Germany, where the deal is being
familiar with the tunities further down the corporate of 1,076 directorships, research by sold as a German takeover of the NYSE
report told City A.M.: ladder instead during a consultation Cranfield University showed. or as a merger of equals.
“Clearly nobody in in October. The World Economic Forum in Should the exchanges complete the
the City would prefer to The Institute of Directors said even Davos tried to impose a 20 per cent transaction the new company could be
see quotas.” voluntary quotas are “demeaning for quota for female delegates, withhold- named DB NYSE Group, according to
Many business bodies many aspiring and existing female ing extra places from companies that people close to the negotiations.
and academics were directors”, while the CBI put forward sent all-male delegations to the con- Meanwhile, the London Stock
dismayed by the a “comply or explain” model similar ference in January, but fell short Exchange’s planned merger with
idea of govern- to that planned in Australia. with around 16 per cent. Canada’s TMX Group could be derailed
ment-imposed Angela Knight, chief executive of The European Commission is also by Canadian officials.
quotas on board- the British Bankers’ Association, said considering a mandatory target for Dwight Duncan, who as the state of
rooms, with sev- yesterday: “There needs to be some women on boards, following the Ontario’s finance minister is tasked
e r a l positive encouragement for women, introduction of schemes in Norway, with vetting the deal, raised concerns
recommend- but quotas don’t necessarily lead to France and Spain. Norway is close to over Borse Dubai, one of the London
ing trial direc- the right answer.” its target of 40 per cent after five Stock Exchange’s largest investors, hold-
torships and There were 135 female directors in years under a mandatory quota. ing 11.3 per cent of the new company.
better oppor- FTSE 100 companies during 2010, out ALLISTER HEATH: P2 EXCHANGE CONSOLIDATION: P19
NASDAQ ▲2,809.44 +18.99 £/$ 1.60 t-0.01 £/¤ 1.18 unc ¤/$ 1.36 unc Certified Distribution
03/01/11 till 30/01/11 is 97,465
 2 News
Why quotas are the wrong answer
EDITOR’S LETTER
ALLISTER HEATH
QUOTAS are wrong. In a free, liberal
society, people should never be given
jobs just because they happen to be
part of a particular group. Applicants
should be judged solely on their merits
– for their ability to perform and their
motivation – and not on whether they
tick an arbitrary box. There should be
no discrimination against or in favour
of any group and no favouritism.
Those who want strict rules on the
proportion of women on quoted com-
pany boards are rightly seeking to
improve women’s chances and to help
them realise their dreams – but their
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WHAT THE OTHER PAPERS SAY THIS MORNING
SIEMENS EYES BIG NETWORK PUR-
CHASES
Siemens is looking out for large
acquisitions to expand its power net-
works and plant automation busi-
nesses, in a fundamental strategic
shift by the German industrial con-
glomerate. Joe Kaeser, Siemens’ chief
financial officer, said Europe’s largest
engineering group by sales had
reached the “management maturity”
to pursue significant takeovers.
OUATTARA THREATENS TO EXTEND
COCOA BAN
Alassane Ouattara, the international-
ly recognised winner of Ivory Coast’s
disputed presidential election, has
pledged to extend indefinitely the
one-month ban on cocoa exports if
rival Laurent Gbagbo has not left
power by the time the restriction
expires on 23 February. The move
could push cocoa prices higher
methods will fail. Quotas are tanta-
mount to placing a sticking plaster on
an infected wound, and assuming that
all is now well.
Quotas devalue the achievements of
those who climb to the top without
any artificial assistance, punish those
who are discriminated against,
inevitably promote inferior candidates
(and hurt firms) and create resent-
ment. They replace one flawed net-
work by another: instead of the old
school tie, whereby a small group of
male cronies serve on vast numbers of
boards, an even smaller number of
women would end up doing the same,
in an even more extreme manner. The
figures would look better, but there
would be no real transfer of power.
Other solutions are needed. For a
start, there is a desperate need to bet-
ter understand the real reasons why
there aren’t more women in top jobs
and what can be done to sweep away
barriers to a truly meritocratic Britain.
Clearly, the old-fashioned, in-your-face,
despicably sexist discrimination of
PM defends
Big Society
POLITICS
▲
BY RICHARD PARTINGTON
DAVID CAMERON will today launch a
defence of his Big Society plans, as the
government opens a new bank for
charitable causes.
The prime minister will tell social
entrepreneurs in a speech today: “The
Big Society is my mission in politics.”
“Let me make one thing absolutely
clear: I’m not going to back down from
what I believe in just because of a few
bad headlines.”
His defence comes as cabinet office
minister Francis Maude launches the
Big Society Bank, a key plank of the
prime minister’s plans to engineer a
social investment market.
The bank will have an initial capital-
isation of up to £300m and will serve to
encourage investors to plough funds
into charities and social projects.
CONCERN OVER PAY “COMPLEXITY”
Leading City investors are pressing
companies to reduce the increasing
complexity of how they calculate
management pay ahead of the UK’s
busiest season for annual general
meetings. Several institutional share-
holders have told the Financial Times
that they are concerned about a
growing trend of companies intro-
ducing ways of calculating perform-
ance-linked pay packages that are not
tied to share price performance, or
involve the use of opaque discre-
tionary criteria.
GROSVENOR TAPS BOND MARKET
Grosvenor, the property company
owned by the Duke of Westminster,
has tapped the international bond
markets to raise £125m to invest in
the development of its London estate,
including salubrious addresses in
Mayfair and Belgravia. It raised
£125m through an issue of long-term
unsecured loan notes as part of a
strategy to diversify funding sources.
yore is in dramatic retreat – but that
has not been enough. Intriguingly,
there has been an explosion of foreign-
born male CEOs – the UK boardroom,
at least at the top, is no longer a closed
shop dominated by a self-perpetuating
elite. But this hasn’t translated into a
shift of the gender balance: the share
of female FTSE 100 directors seems
stuck at 12.5 per cent and just 7.8 per
cent for the FTSE 250, as Cranfield
University’s annual FTSE Board Report
points out. In 2009, of the 14 new
women hired as FTSE 100 directors for
the first time, only one was British. Of
the five female FTSE 100 CEOs in 2011,
just two are British, three American
(and if Santander UK floats, the sixth
would be Spanish). UK born-women
are falling behind even their foreign-
born counterparts, let alone men.
It is not just boardrooms that are
male-dominated – this is a much more
general issue. Take the Cabinet: out of
23 members, four are women (includ-
ing a minister without portfolio);
another six (male) ministers also
Funded by £100m of cash from dor-
mant accounts and an additional
£200m given by the UK’s largest banks,
it will use its balance sheet to co-invest,
underwrite or guarantee investments
along with private sources of capital.
Maude will today say: “The Big
Society Bank will massively expand
finance for social ventures, creating a
new source of finance alongside phi-
lanthropy and public service contracts.
It’s unthinkable for businesses to grow
and thrive without capital finance but
this has too often been the reality for
charities and social enterprises.”
Francis Maude will
launch the Big Society
Bank, a key part of the
government’s plans to
boost social investment.
COST OF AXEING BRITAIN’S DEFENCES
The full cost of military equipment
being scrapped as a result of the gov-
ernment’s defence review will be
more than £12bn, The Times can
reveal. A further £2.3bn worth of
defence kit has been designated as
“lost”, Danny Alexander, the Chief
Secretary to the Treasury, will admit
to Parliament today. The figures will
be announced as part of the Spring
Supplementary Estimates released
that show accounting changes and
any extra spending across govern-
ment departments approved by the
Treasury this year for 2010-11.
FANNIE AND FREDDIE FACE EVICTION
IN AMERICA
The Obama Administration took a
wrecking ball to its dilapidated hous-
ing finance system yesterday by
announcing plans to wind down
Fannie Mae and Freddie Mac.
attend meetings. So 17.4 per cent of
members are women, falling to 13.8
per cent of ministers in attendance. All
the powerful positions are held by
men, with only minor departments
(and non-departments) in the hands of
women. The media is no different: out
of eleven national daily paid-for
papers, ten national Sundays, three
free daily commuter papers and the
three top-circulating current
affairs/political weekly magazines, just
two (7.4 per cent) are edited by women.
There is hope. Eighty-two FTSE 100
companies have women on their exec-
utive committees. Many of these will
eventually graduate to main board
directorships. There is also a growing
pipeline – 2,551 women on the corpo-
rate boards and executive committees
of all FTSE listed companies, not count-
ing the women on FTSE 100 corporate
boards. Change is coming. I wish I
knew how to speed it up – but quotas
are clearly not the way forward.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Vince Cable returned to the attack on bonuses and banks yesterday.
Cable: banks need surgery
BANKING
▲
BY JULIET SAMUEL
BUSINESS secretary Vince Cable
emerged from a long period of keep-
ing a low profile yesterday to condemn
large bank bonuses as “offensive” and
to call for “fundamental surgery” on
the industry.
Having stayed out of the limelight
since December when he was record-
ed saying he had “declared war” on
Rupert Murdoch, he has returned to
his campaign against banks.
IVOLGA PUTS WORLD’S BIGGEST FARM
UP FOR SALE
The world's biggest farm has put up
the for-sale sign, after being hit by a
collapse in grain prices during the
world financial crisis, and then by the
droughts and the fires that raged
across its territories last summer.
Ivolga, a farming conglomerate which
controls 1.5m hectares of land across
Russia and Kazakhstan, is presently
negotiating with Royal Bank of
Scotland, which leads its creditors, to
restructure a $300m loan it arranged
in 2007.
NATIONAL EXPRESS NOT RUFFLED BY
HEDGE FUND ELLIOTT
National Express has denied that
Elliott Management, an aggressive
American hedge fund with 16pc of
the transport group, is placing pres-
sure on the company to put itself up
for sale.
CITYA.M. 14 FEBRUARY 2011
NEWS | IN BRIEF
Wood in £1.75bn sale of unit
General Electric says its oil and gas busi-
ness has reached a deal to buy the John
Wood Group's well support division for
about $2.8bn (£1.75bn). GE said in a
statement yesterday that the deal must
be approved by Wood Group's share-
holders. It's expected to close later this
year. Wood said last week it was consid-
ering a disposal.
China to link Atlantic and Pacific
China is in talks to build a “dry canal”
linking Colombia's Atlantic and Pacific
coasts by rail, Colombian President Juan
Manuel Santos was quoted as saying
yesterday. The 220km project, dubbed
as an alternative to the Panama canal, is
one of a series of Chinese proposals that
would boost transport links with Asia.
AIG wants sovereign funds
AIG and the US government are hoping
soverign wealth funds will buy a large
trance of the insurer’s shares when it
sells up to $20bn worth. With the gov-
ernment share sale expected to take
place in May, AIG and the government
have reportedly begun making contact
with sovereign funds in Asia and Europe.
Asked about the possible break-up
of investment and retail banking, he
said: “There needs to be fundamental
reform. There will have to be change
and it will have to be radical.”
“What we should notice at the end
of (banking reforms) is the banks are
more competitive and that they are
safer and that they are not making
large excess profits which then fuel
the bonus culture,” he said. His attack
on banks days after the Merlin deal
was launched could put him on a colli-
sion course with the Treasury.
J.P. MORGAN PLANS NEW-MEDIA FUND
J.P. Morgan Chase & Co., riding the
wave of investor interest in fast-grow-
ing, privately held technology firms
such as Facebook and Twitter, plans
to start a fund that would invest in
Internet and digital-media compa-
nies, people familiar with the matter
said. The planned investment fund,
run from the New York company’s
asset-management unit, is expected
to raise between $500m and $750m,
these people said.
BORDERS' WOES HELP E-BOOKS
ARTICLE
A bankruptcy filing by Borders Group
Inc., which could come within days,
will mean fewer places for consumers
to buy books, which in turn is expect-
ed to speed the pace of online and e-
book sales. Borders has been putting
the finishing touches on a store-clo-
sure programme.
CITYA.M. 14 FEBRUARY 2011 News 3

KING’S SPEECH SWEEPS BOARD AT BAFTAS

Obama government vows to
halve US deficit in a decade
today, puts the government on track “He”s going to present a budget

▲
US POLITICS
BY HARRY BANKS
US president Barack Obama’s 2012
budget plan would slash the US
deficit by $1.1 trillion (£688bn) over
10 years, officials said yesterday.
However opposition Republicans
were unimpressed and vowed to push
for deeper cuts in spending.
White House budget director Jack
Lew said the proposal, to be unveiled
to halve the federal budget deficit by
the end of Obama’s first term in
office, which extends through 2012.
“We’re doing what every family
does when it sits around its kitchen
table: we’re making the choices about
what do we need for the future,” said
Lew.
Republicans, who control the
House of Representatives, said they
would make more savage cuts.
that will continue to destroy jobs by
spending too much, borrowing too
much and taxing too much,” said
House of Representatives speaker
John Boehner.
The budget proposal is certain to
kick off a heated debate with
Republicans, whose big gains in
November’s elections were fuelled by
conservative activists calling for cuts
in spending and government size.

"The King's Speech", in which Colin Firth plays the stammering King George VI, won the
British BAFTA award for best film yesterday, the seventh prize the picture picked up on
“ WHAT COULD
BE SIMPLER THAN
the night. Firth won for best actor while his co-stars Helena Bonham Carter and Geoffrey
Rush also won the best supporting actress and actor respectively. Picture: REUTERS

Egypt strikes SPREADS?

”
force holiday NOTHING.
owned National Bank of Egypt, the
▲

WORLD AFFAIRS
BY JENNY FORSYTH
EGYPT has been forced to declare
today a bank holiday after workers
emboldened by the ousting of
President Hosni Mubarak and
angered by low wages and poor work-
ing conditions disrupted operations
at the country’s state banks.
Banks were already due to be
closed tomorrow to mark Prophet
Mohamed’s birthday. Now the market
is likely to face further turmoil when
it opens on Wednesday for the first
time since its closure on January 27.
Egyptian workers have begun to
show their pent-up frustration, with
thousands staging strikes, sit-ins and
protests over pay and conditions at
firms and government agencies in
fields such as steel, textiles, telecoms,
railways, post offices, banks, oil and
pharmaceutical companies.
Tarek Amer, chairman of state-
country’s biggest commercial bank,
submitted his resignation yesterday
after angry employees prevented him
from reaching his office, bankers
said. The central bank, responsible for
the state banks, had not yet accepted
the resignation, they added.
The Egyptian pound was little
changed in slow trade yesterday, the
first day of trading since Mubarak
was toppled from power on Friday,
and the central bank said it had suc-
cessfully covered an auction of E£6.5
bn (£691m) in treasury bills.
The Egyptian market is set to
impose new restrictions when it
reopens, as an extra security.
Trading will be suspended for 30
minutes if there is a five per cent
change in the EGX100, a benchmark
index. A 10 per cent change would
result in a suspension of activity for a
period to be determined by the
exchange.

Violence breaks out in Bahrain

as anti-government rallies begin
The tiny kingdom is one of the
▲

WORLD AFFAIRS
VIOLENCE broke out in Bahrain last
night on the eve of anti-government
rallies spurred on by the success of
the uprising in Egypt.
Riot police clashed with youths
staging a march in Karzakan, a Shiite
village in western Bahrain, and set up
checkpoints ahead of today’s “day of
rage”, which has been largely organ-
ised through the internet.
most politically volatile areas in the
Gulf and is also home to the US
Navy’s 5th Fleet.
Bahrain’s Shiites, who make up
around 70 per cent of the population,
have long complained of discrimina-
tion by the ruling Sunni dynasty.
Bahrain’s leaders have tried to
quell the protests by offering more
press freedom and giving every
Bahraini family 1,000 dinars (£1,700).
 4 News
Weber: euro
doves blocked
ECB candidacy
▲
EUROZONE
BY JULIET SAMUEL
BUNDESBANK governor Axel Weber
has been forced out of the running for
the European Central Bank (ECB) pres-
idency by Eurozone doves who would
have marginalised his hawkish views,
he said after quitting the Bundesbank
presidency on Friday.
Weber was the front-runner to
replace outgoing ECB president Jean-
Claude Trichet until last week, when
he announced that he is quitting the
Bundesbank in April, a year before his
term is up.
Referring to his opposition to the
ECB’s activism in buying sovereign
bonds to shore up the euro, Weber
said: “These positions might not have
always been helpful for my acceptance
in some governments.”
Eurozone governments have
become heavily reliant on ECB
activism as worries about the euro
have pushed up yields in peripheral
economies. But Weber has vocally dis-
agreed with the bank’s interventions.
He now says that he was “aware that
a potential candidacy would be dam-
aged” by his stance. “The (ECB) presi-
dent has a special role,” he added.
“However, if he has a minority position
in important questions, then the cred-
ibility of this office suffers.”
Weber’s withdrawal throws the race
wide open to a thin pool of candidates,
with Germany lacking an obvious
replacement. Germany is likely to have
a strong say in the selection of a new
president due to its role in bank-
rolling successive Eurozone bailouts.
The race will pit traditionally hawk-
ish countries fearful of inflation, like
Germany, against more indebted,
high-unemployment economies like
Spain and Italy, who would favour
loose policy and a more activist bank.
And there is also a strong element of
national pride at play. ING economist
Carsten Brzeski asks: “Could the
French live without a French member
in the ECB’s executive board after the
end of Trichet’s term?” One member
of the board will retire in May, while
Trichet will step down in October.
FRONTRUNNERS FOR THE ECB JOB
ERKKI LIIKANEN
Currently the governor of the Bank of
Finland and a member of the ECB
governing council, Liikanen could sat-
isfy a perceived need for geographical
balance in the ECB’s make-up, given
that its vice-president is from
Portugal. However, EU economics
commissioner Olli Rehn is also
Finnish. Liikanen is known as a mod-
erate on monetary policy.
KLAUS REGLING
The current head of the European
Financial Stability Facility, the
Eurozone’s €440bn bailout fund,
could provide German Chancellor
Angela Merkel with a replacement
German to fly the national flag. He is
thought to be hawkish on monetary
policy while being more conciliatory
than Weber. But his lack of central
bank experience weighs against him.
MARIO DRAGHI
Italy’s central bank governor and
chair of the Financial Stability Board,
Draghi was viewed as the only obvi-
ous rival to Weber for the ECB job. But
his chances are hurt by his nationali-
ty: Germany will not be keen to have
southern-Europeans as both presi-
dent and VP. German daily paper Bild
has already said that he would not be
hawkish enough on inflation.
YVES MERSCH
The central bank governor of
Luxembourg would satisfy German
demands for a hawk, having once
joked: “Do I look like a hawk? Is it the
shape of my nose?” He views price sta-
bility as a central bank’s key responsi-
bility and has criticised both the
ECB’s bonds purchases and low rates.
This might mean, however, that he
faces the same opposition as Weber.
CITYA.M. 14 FEBRUARY 2011
ECB could still
pursue state
clearing house
▲
EUROZONE
BY JULIET SAMUEL
THE nationalisation of over-the-
counter (OTC) derivatives trading in
the Eurozone could still be on the
table despite the exit of Axel Weber
from the race for European Central
Bank presidency.
As City A.M. revealed, the proposal
to create an ECB-run clearing house
for OTC products such as collater-
alised debt obligations and interest
rate swaps formed a key part of Axel
Weber’s campaign agenda for the
ECB before he was forced out of the
race last week.
But some observers think that the
ECB’s development of TARGET2
Securities, or TS2, a trading platform
for bonds and equities in the
Eurozone, could be a precursor to
the creation of a similar platform for
derivatives.
Pinsent Mason’s Tony Anderson
says: “You wonder if they’re trying to
develop synergies, bearing in mind
the focus around OTC derivatives
and the political willpower to have
central clearing houses bring OTC
transactions on-market.”
The EU is currently drafting regu-
lation to force OTC derivatives trades
into regulated central clearing hous-
es even as the ECB develops its own
more extensive trading platforms.
 6 News
Insurer JLT
to shun City
skyscrapers
▲
EXCLUSIVE
BY MARION DAKERS
INSURANCE broker Jardine Lloyd
Thompson is close to signing for
office space in a new development at
80 Fenchurch Street, industry sources
have told City A.M.
The insurance firm, which is cur-
rently based at 6 Crutched Friars, had
been linked with flagship City towers
including the Cheesegrater, but is
now understood to have ruled out
taking space in a skyscraper.
Twinlite, an Irish property develop-
er, hopes to build a nine-storey block
designed by architect Foster +
Partners on the 80 Fenchurch Street
site, which is due for completion in
2013.
Shieldpoint 78, an Isle of Man-regis-
tered firm named as the developer on
planning applications, could start
work as soon as this month after win-
ning permission from the City of
London in late January to demolish
the empty buildings at 78 – 87
Fenchurch Street.
However, work could be delayed by
New College, Oxford, which owns the
freehold land underneath the build-
ings and has so far withheld its per-
mission for work to begin.
A spokesperson for JLT declined to
comment on 80 Fenchurch Street,
but told City A.M.: “We have been look-
ing at various options and aren’t in
any agreement at a contractual level.”
Shieldpoint 78 and Twinlite could
not be reached for comment.
The developers of several City tow-
ers including the Cheesegrater,
Walkie Talkie and the Shard are cur-
rently hunting for tenants to sign for
office space in their developments
ahead of completion in 2014, while
the investors financing the Pinnacle
have asked for a large pre-let before
they grant further funding.
London has seen a resurgence in
large office builds over the last 12
months, with developers keen to cash
in on an expected space squeeze after
2012. Some have restarted projects
that were shelved during the reces-
sion.
CITYA.M. 14 FEBRUARY 2011
Review looks at
high cost of sick
leave from work
EMPLOYMENT
▲
THE government will this week
announce an independent review into
sickness absence in the workplace, to
be co-headed by David Frost, head of
the British Chambers of Commerce.
He will be joined by Dame Carol
Black, who in 2008 led a review that
estimated a £100bn cost to the econo-
my from illness-related absence and
worklessness.
How the Fenchurch Street site looks now (above) and the developers’ plans (below) The review culminated in the new
“fit note” system being promoted by
the Department for Work and
Pensions, whereby doctors advise peo-
ple how to return to work while safely
recuperating.
The average cost of absence is far
higher in the government sector,
where occupational sick pay schemes
are “most generous,” according to the
Chartered Institute of Personnel and
Development (CIPD).
“The median cost per employee in
the public sector is £889, more than
twice that in the manufacturing and
production sector (£400),” the CIPD
found. In both private sector services
companies and non-profit organisa-
tions, the average annual cost of sick-
ness is £600 per employee.
And the NHS itself could save
£555m a year by reducing sickness
absence, according to the think tank
Reform.
CITYA.M. 14 FEBRUARY 2011
BarCap to be
star turn in
bank figures
▲
BANKING
BY JULIET SAMUEL
BARCLAYS is expected to rely on its
investment banking division,
Barclays Capital, for over 70 per cent
of its pre-tax profits when it reports
its full-year results tomorrow.
Analysts are anticipating a loss at
the bank’s corporate division, mean-
ing that despite a difficult year for
investment banks, BarCap will bring
in the vast majority of the group’s
earnings.
Bonuses are expected to fall,
although the overall compensation
ratio of pay to revenues could go up,
partly as a result of accounting rules
governing deferred pay.
Despite a likely drop in bonuses,
the bank will have to face down con-
troversy over the pay of its chief exec-
utive Bob Diamond, who is due for a
bonus of up to £9m in shares. Even
under pressure, the bank could
decide not to reveal his award until
the release of the bank’s formal full-
year report in several weeks.
With Diamond presenting the
results for the first time as chief
executive tomorrow, his old division,
BarCap, is expected to report pre-tax
HIG buys British Amlin warns on
telecoms firm strict new rules
▲
PRIVATE EQUITY
HIG Europe, the European arm of
global private equity house HIG
Capital, has acquired Aircom
International, the mobile phone serv-
ices provider.
Bought from Advent International
for an undisclosed price, the Aircom
investment marks HIG’s eighth new
deal investment in the last 12 months.
Barclays and HSBC provided a “joint
debt package” to support the group
going forward.
Leatherhead-based Aircom is fore-
cast to deliver more than £90m in rev-
enues in its current financial year to
June 2011.
News 9
Private firms step
Barclays chief
executive Bob
Diamond is due to
give his first full-
year presentation
in to create jobs
as head of the
group
tomorrow.
Picture: Micha
Theiner
/City A.M.
sector take hold.
▲
RECRUITMENT
BY RICHARD PARTINGTON Manufacturing and private sector
services will provide the most jobs
JOB creation in the private sector is over the first quarter of 2011, accord-
starting to pick up, according to a ing to the survey of 750 employers.
respected report. However, redundancies look set to
The survey, conducted by the rise sharply. Public policy adviser at
Chartered Institute of Personnel and the CIPD Gerwyn Davies said:
Development (CIPD) and KPMG, lends “Encouragingly, the private sector
support to prime minister David continues to generate new jobs, but
Cameron’s claim that private firms we are some way off the jobs boom
will provide jobs as cuts in the public that we are all hoping for.
Cell,
cell,
profit of £4.3bn for 2010, versus
£5.7bn for the group overall. This Evolution Securities’ Arturo de Frias
would compare to group pre-tax claims that the bank would need to raise
profits of £4.59bn last year, of which £5bn in order to stay above the 10 per cent
£2.46bn came from BarCap. mark.
Diamond is expected to announce
cell.
a cost-cutting initiative across the
whole group, extending the job cuts
currently being implemented at
BarCap.
And in reponse to concerns about
the bank’s capital buffer, he could
also announce that he is tying
bonuses to its capital ratio using a
form of contingent convertible bond
that would be triggered if its capital
falls too low.
Some analysts claim the bank will
struggle to keep its core tier one cap-
ital ratio at 10 per cent.
ANALYSIS l Barclays
315 p
305 311.10
11 Feb
295
285
275
265
255
18 Nov 6 Dec 29 Dec 20 Jan 10 Feb
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 10 News
Boeing wows the public
with latest 747 jumbo jet
▲
AVIATION
AIRCRAFT manufacturer Boeing yes-
terday unveiled its first new 747 pas-
senger aircraft design for more than
20 years.
The 747-8 Intercontinental jumbo
jet was introduced to around 10,000
workers, guests and the media at the
firm’s jet factory in Everett, near
Seattle.
The 747-8 design is 85 per cent
new, only relying on some elements
of the original 747 plans, and has
new more fuel efficient wings, tail
and engines.
As the biggest jumbo jet Boeing
has manufactured, the plane is 250
feet long and can seat as many as
467 passengers – 51 more than the
current range.
The glamorous ceremony to intro-
duce the jet, which has an eye-catch-
ing red, orange and white, striped
paint scheme, was intended to drum
up interest
amongst
operators.
However
airlines have so far
given a cool reaction to the new
plane, with Boeing only having
received 33 orders for the $317.5m
(£198.4m) aircraft.
German flag carrier Lufthansa has
placed 20 orders so far, whilst
Korean Air Lines has agreed to buy
the rest.
The first plane the public will get
the chance to fly on will be delivered
to Lufthansa in 2012.
A freight version of the aircraft
has had more success, with 74 sales
to date.
The US firm had attempted several
times to develop an updated version
of the 747 after it released the last
version of the iconic plane in 1989,
only to be thwarted by a lack of inter-
est amongst operators.
The 747 long ago lost its
place as the world’s largest
airliner, when the 525-
seat Airbus A380 was
unveiled in 2005.
Investors are getting picky
CNBC COMMENT
STEVE SEDGWICK
L
ET’S face it; for most of the rally
off the 2009 lows, equity
investors could have got a
decent return from buying just
about any mainstream index. It’s
been pretty much one-way traffic
and even the most inept of investors
could be sitting pretty on a big dou-
ble-digit return. But is the going
about to get a lot tougher?
To recap, the S&P is up circa 95 per
cent from March 2009, the Euro
Stoxx 50 is up 22 per cent ahead of
its twelve month low and our very
own FTSE 100 has gone up 16 per
cent in the last 52 weeks. So far, so
good – but the current earnings sea-
son may be proving that the time to
be a little more stock specific could
be upon us.
This past week has seen a whole
Ballmer questions
Twitter valuation
TECHNOLOGY
▲
BY ELIZABETH FOURNIER
MICROSOFT chief executive
Steve Ballmer has questioned
the rumoured $10bn (£6.2bn)
valuation of Twitter, and sug-
gested that the price will be dif-
ficult for a potential buyer to
sustain if the site were to go
public.
“Nobody has paid $10bn yet
for Twitter,” he is reported as
saying. “We have a great rela-
tionship with them, but the
numbers are certainly large –
there is no question about that.”
In its most recent fundraising
last December, Twitter raised
$200m from venture capitalist
funds, a deal that valued the
company at $3.7bn. The site only
introduced advertising last year,
but its revenue for 2010 is esti-
mated to be around $45m – a
Pricing the future of 140 characters
THE $10bn price tag for Twitter
puts its valuation at 222 times rev-
enue, using estimated figures for
2010. Even if the site comes good
on projections that ad income will
hit $250m in 2012, the multiple is
still 40 times revenue – a fancy
amount for a business that is yet to
turn a profit.
A potential buyer will need more
than that if it’s going to put this
much cash on the table. And
Twitter can learn from its suitors
how best to approach the next
host of disappointments for the mar-
ket: from Cisco to Air France-KLM,
from Nokia to L’Oreal. In the UK,
Diageo fell last week as sales missed
taregts on the back of the economic
woes of Greece, Spain and Ireland.
So are the wheels falling off the
earnings story? The answer, by and
large, is a resounding “no”. If, for
example, you look at the US report-
ing season so far, 71 per cent of com-
panies have beaten forecasts,
according to Capital IQ, a market
analytics research group. Capital IQ
says this is being led by a strong per-
formance from the financial sector.
In fact, virtually no sector is showing
a net miss on numbers.
The problem appears to be an
asymmetrical response from the
market when looking at beats com-
pared with misses. UBS strategist
Nick Nelson pointed out to me last
week that companies beating expec-
tations in Europe are being reward-
ed with a 3.06 per cent rise in their
share prices on average on the day or
reporting. However, companies miss-
ing are being hit by an average 5.43
per cent fall. The conclusion is clear
– investors are getting fussier. They
want more bang for their buck.
In its most recent report on the
figure that’s predicted to double
in 2011.
Ballmer also stressed the dif-
ference between Google, which
went public in 2004, and the
slew of private social media
companies such as Facebook
and Twitter that have been the
subject of so much price specu-
lation.
“The valuations aren’t put to
the test every day,” said Ballmer.
“So we’ll see what happens.”
Meanwhile Twitter dashboard
TweetDeck is believed to be in
talks with a view to being taken
over by software developer
UberMedia that would value it
at between $25-30m.
Tweetdeck is based in
London’s so-called Silicon
roundabout and is one of the
largest Twitter-based applica-
tions not owned by Twitter
itself.
phase of its growth. Facebook’s
advertising revenue hit $1.86bn
last year, and the site accounted for
five per cent of all online advertis-
ing in 2010. With other income
streams bringing the total to
around $2bn, a $50bn valuation is
a little less ridiculous (albeit still
extreme) when compared to the
Twitter figures.
Twitter is nearly ten years
younger than Google, two years
behind Facebook, and still has a
lot to prove. It is used by just 12 per
CITYA.M. 14 FEBRUARY 2011
European earnings season so far,
UBS reports: “We are now approach-
ing halfway through the season, and
the developing trend has been of
consensus expectations catching up
with the early positive reporting,
leading net reporting to nearer to in-
line.”
Nelson believes though that the
top line growth story for companies
remains strong, but it is the capex
increases coming through to the bot-
tom line that are hurting for some
companies.
Higher costs are materialising for
companies across the board but it is
the ability, or lack of ability, to pass
them on to the consumer that is the
key. The nearer you are to the con-
sumer, then the harder it is to pass
on price increases. That, at least, is
how the logic goes.
So while it’s not exactly the
moment to call time on the equity
market rally of the past two years,
with much of the easy money now
well and truly in the price, it is
undoubtedly time to return to good
old – and tricky – stock picking. How
inconvenient for most of us.
Steve Sedgwick is a presenter on
Squawk Box Europe each weekday morn-
ing on CNBC.
Revenue This is predicted to
$45m rise to $250m by 2012, accord-
ing to research by eMarketer
Multiple The number of times
222 revenue that the $10bn figure
values Twitter at
Users Just 12 per cent of
12% internet users use Twitter –
Facebook’s figure is 62 per cent
Latest valuation Calculated
$3.7bn when Twitter received $200m
in venture funding in December
cent of internet users, compared to
Facebook’s 62 per cent.
If it were to pursue a listing,
Google’s example would be one to
avoid – during its Dutch Auction
initial public offering, a series of fil-
ing errors and press reports saw
the price of its stock drop from
around $115 per share to officially
start at $85 per share.
BOTTOMLINE
Analysis by Elizabeth Fournier
CITYA.M. 14 FEBRUARY 2011
Mervyn King faces pressure over rising prices
Inflation risk
turns up heat
on Bank rate
▲
UK ECONOMY
BY JULIAN HARRIS
THE Bank of England could signal an
imminent rise in interest rates this
week, with the publication of the lat-
est inflation report which forecasts
inflation and growth in the UK.
“We expect the Bank’s report to
show an upward revision to their
inflation projection and to signal
that the first rate hike is likely to
arrive sooner rather than later,” said a
BNP Paribas spokesperson.
More pressure will be piled on the
Bank of England to raise interest rates
tomorrow, if January’s consumer
price inflation yet again surprises on
the upside. In December, CPI infla-
tion jumped to 3.7 per cent, above
forecasts of 3.3 per cent.
While some analysts still expect
rates to stay at their historically low
level of 0.5 per cent until the end of
the year, the markets anticipate an
earlier hike.
“Looking at sterling interest rate
futures, markets are pricing in an 88
per cent chance of a 0.25 per cent
increase by June,” said Hetal Mehta of
Daiwa Capital.
Markets are 100 per cent confident
West End shop sales soar ahead,
defying post Christmas slump
▲
RETAIL
LONDON’S West End stores have seen
strong growth in sales in January,
despite the rise in VAT and sluggish
wage growth, it was revealed today.
Retail sales were up 5.8 per cent
compared to the same time last year,
the New West End Company said.
An increase in menswear was par-
ticularly notable, it said, reporting a
25 per cent increase in sales of men’s
suits from high-end tailor Brooks
Brothers.
“January trading was boosted by
those perennial big-spenders – shop-
pers looking for luxury items and
News 11
ECONOMISTS’ VIEWS: IS INFLATION HERE TO STAY? Interviews by Julian Harris
JAMIE DANNHAUSER | IAN STEWART |
LOMBARD STREET RESEARCH DELOITTE
“ We broadly sympathise with
the view of the Bank – that inflation will
peak this month or in March, but fall “ My assumption is that a good
deal of the excess inflation relates to
transient external influences, and we
” ”
heavily in January next year and be are likely to see inflation running around
below target through next year. about target levels next year.
MICHAEL SAUNDERS | CITIGROUP
Picture: Micha Theiner/City A.M “ Over four years, prices of imported factory goods are up 24 per cent and imported foods have
soared 43 per cent. The pass-through from cost pressures is not over and, together with less slack
from the recession than usual, will keep UK inflation above target for an extended period.
”
Spring travel
of rates hitting one per cent by to Nantes
September, and are expecting an
additional 0.25 per cent rise by the
end of the year, she said.
“We still expect rates to rise soon
and rise further than markets price
in,” added Michael Saunders of
Citigroup.
Saunders also questioned the
Bank’s credibility, after a long period
of incorrect inflation forecasts.
“The nine inflation reports from
August 2008 to August 2010 all pro-
jected sub-target inflation two to
three years ahead,” Saunders said,
“and succeeded in persuading mar-
kets that rates will stay low for an
extended period.”
“However, the November report’s
forecasts failed to gain similar trac-
tion with the markets,” he said.
Even if the Bank forecasts inflation
coming down next year, “investors
may again be sceptical, doubting the
inflation forecasts and hence also
doubting their message that rates
will rise slower than markets price
in,” Saunders said.
“In fairness, the recent forecasting
record of economists has not been
much better,” added Deloitte’s Ian
Stewart.
Fly from
also domestic shoppers kitting them-
£
41 99
one
way
selves out for a new year of work,”
said Jace Tyrell of the New West End
Company.
“London is definitely spending
again this January.”
Retail sales across the country
increased by 4.2 per cent in January,
the British Retail Consortium said
last week.
Yet sales at John Lewis, often used Keeping London on the move
as a bellwether for the high street,
appear to have stagnated, after a
record-breaking December. Sales at
the store in the week ending 5
Fares are one way including taxes and charges, only available online, subject to availability. 21 day advance purchase required.
February were up only 1.2 per cent
year on year. Available for travel on or before 29.10.11. Book by 17.0211.
 The Capitalist
12
VALENTINES
ADDING TO
OUR TRADE
DEFICIT
THERE are no excuses for disappointing
Valentines dates this evening who fail to
produce a plush dozen roses: rose deliver-
ies to the UK this year are at record highs.
Virgin Atlantic’s cargo division has
reported a 40 per cent increase in the vol-
ume of flower deliveries to the UK from
Kenya, our main supplier of roses, com-
pared to the same period last year.
That equates to 15 tonnes of flowers
shipped over in just the last ten days, with
Kenyan roses making up a third of the
blooms you’ll see sold and bought this
Valentines.
Japan and the US have likewise upped
their rose consumption. And while Kenyan
roses remain ever-popular, Brits also seem
to be looking for an original way to greet
their dates: imports of South African
chrysanthemums and American carna-
tions have also been on the rise.
But to add a grim dose of guilt to your
romantic pleasures, Lake Naivasha, the
fresh-water lake in Kenya that supplies
much of the irrigation for many of the
country’s rose plantations, has been so
depleted by failed rains recently that the
country is considering rationing water use.
Which would make your dozen roses
another data-point in the scourge of global
commodity price inflation.
BEND IT LIKE HOLMES
Financial education and football are rarely
associated with one another, but yesterday
Standard Chartered attempted to form a
beautiful relationship between the two at
its London Football Clinic. Ex-Liverpool
striker Ian Rush joined Standard
Chartered’s Richard Holmes for a training
session with local and visually impaired
children, who were then given a lesson in
personal finance, incorporating a football
theme.
At this rate it’ll only be a matter of time
before Wayne Rooney is offering stock tips.
CITYA.M. 14 FEBRUARY 2011
EDITED BY
JULIET SAMUEL
GOT A STORY? EMAIL
thecapitalist@cityam.com
BILL OF THE WEEK
A THIRSTY bunch crashed newly
opened family restaurant Chabrot in
Knightsbridge recently, taking advan-
tage of the reasonable food prices to
explore the fine wines menu put
together by sommelier Philippe Messy.
How much will your Balancing their liquids and solids, the
dozen roses cost in a four dinner guests kicked off their
year’s time? meal with a couple of plates of fois
Picture: GETTY gras, salmon, oysters and a charcu-
terie.
In a mood for sharing, they then
moved on to partake of a whole leg of
lamb alongside the obligatory greens
and not-so-obligatory cheese platters.
The feast was followed by a rich
round of desserts, including a rice
pudding and several slices of cake.
All that food must surely have been
enough to absorb some of the effect
from a £600 bottle of Musigny, a
bottle of Corton and a round of vin-
tage Armagnacs.
CITYA.M. 14 FEBRUARY 2011
Youth joblessness not so
severe, says stats critic
▲
UK ECONOMY
BY JULIAN HARRIS
BRITAIN’S youth unemployment is
bad but exaggerated by the govern-
ment’s statistics office, an ex-Treasury
statistician has said ahead of the latest
labour market figures released on
Wednesday.
Unemployed young people account
for “barely one per cent of the popula-
tion,” claimed economic data guru
NEWS | IN BRIEF
Chinese economy overtakes Japan
China has become the world’s second
largest economy, overtaking Japan, it
was revealed last night.
Japan’s GDP shrank by 0.3 per cent in the
quarter, the first decline for five quarters
but slightly better than expected.
House prices face decline in 2011
House prices will fall by 1.7 per cent this
year, the Centre of Economic and
Simon Briscoe.
More young adults are attending
tertiary education than ever before – a
fact which the Office of National
Statistics (ONS) ignores, distorting the
figures, Briscoe claimed.
Whereas it has been reported that
18 per cent of young people are unem-
ployed, when including young people
in education (as not unemployed), the
figure is less than 13 per cent.
“An unemployment rate under 13
Business Research (CEBR) said today.
However, prices will start to edge
upwards again in 2012, it said.
Service sector morale plummets
Business confidence slipped in January,
membership group BDO revealed today.
BDO’s optimism index fell to 92, from
94.8 in December, further below the 95
mark that signals growth. Service sector
confidence fell to 88.4 in the month.
News 13
ANALYSIS l Number of young people (18-24) claiming jobseekers' allowance
1,100,000
1,00,000
900,000
800,000
700,000
per cent and a percentage point below
where it was at the last peak in 1993 is 600,000
just not so sexy – despite it being a
more accurate measure of youth 500,000
unemployment,” Briscoe said.
There are currently less than 400,000
400,000 people aged 18 to 24 claiming
jobseekers’ allowance, compared to
over 1m in the mid 1980s, and over 300,000
800,000 in the early 1990s -- although Source: Timetric
tougher conditions on benefits are 200,000
partly behind the fall, he said. 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
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 14 News
Apple plots cheaper iPhone to fight Google
▲
TELECOMS
BY RICHARD PARTINGTON
APPLE is developing a low-cost version
of the iPhone as its battle with Google
to control the smartphone market
heats up.
Steve Jobs’ company is said to be
working on a “nano” version of its
premium product which will be
around half the size of the iPhone 4.
Russian iron
firm plans
London IPO
▲
MINING
BY RICHARD PARTINGTON
RUSSIA’S biggest iron ore producer is
planning to sell 20 per cent of its
shares on the London Stock
Exchange, valuing the company at
£12.3bn.
Metalloinvest, which is half-owned
by oligarch Alisher Usmanov, could
be launched into the FTSE 100 by the
listing.
The company has appointed
Deutsche Bank, Merrill Lynch and
Credit Suisse to handle the offering.
Usmanov, who owns part of
Arsenal football club, listed Mail.ru –
the Russian social networking site –
in London for £570m.
The move comes after a turbulent
period for Russian companies looking
to list in London.
Three initial public offerings by
Russian-based firms were pulled last
week as a result of tough market con-
ditions.
Nord Gold, the mining unit of steel
giant Severstal, was the biggest firm
to scrap plans for an initial public
offering (IPO) last week.
The miner, led by billionaire Alexay
Mordashov, had been looking to raise
up to $1bn (£622m) to pay down debt
and make new acquisitions.
Steel pipe maker Chelpipe pulled
the plug on a $688m IPO attempt
whilst coking coal producer Koks can-
celled a $500m effort.
Pump manufacturer HMS
Hydraulic was forced to cut its price
range in order to list in London.
It will now raise just $360m, as
opposed to between $396m and
$580m as originally planned.
Unrest in Egypt had hit emerging
markets (EM) funds as investors
pulled more than $7bn in the week to
2 February.
The firms had hoped investors in
EM would become shareholders.
London snubbed by Russian Papa John’s
▲
RETAIL
BY RICHARD PARTINGTON
THE RUSSIAN franchise of Papa
John’s, the global pizza chain, has
snubbed London to list on the
Frankfurt Stock Exchange.
Worldwide Papa’s, which oper-
ates four outlets in St. Petersburg
under the American brand Papa
John’s, will today begin trading in
Germany.
Mobile carriers could sell on the
product for about half the price of
Apple’s main line of iPhones.
The smartphone maker, known for
closely guarding the development of
its products, will continue to work on
a new version of the iPhone, which
will be sold alongside its smaller
cousin.
Technology giant Google has
heaped increasing pressure on Apple
The development comes after a
slew of Russian companies pulled
plans to list in London.
The company considered London
for the listing, as well as Hong Kong,
although chose Frankfurt due to its
strong ties to Russia.
A total of 66 firms from the coun-
try are now listed in Frankfurt,
catching up on the 100 companies
on the London Stock Exchange.
Worldwide Papa’s has issued 80
since the introduction of its Android
operating system to the market.
Android, which features on a num-
ber of manufacturers’ products, has
seen a meteoric rise to become one of
the iPhone’s main rivals.
Sony Ericsson last night announced
a new Android handset, the Xperia
Play, putting further pressure on
Apple.
The iPhone and iPad maker could
million shares for 100 per cent of
the company in an effort to raise
€5.6m (£4.7m), valuing the firm at
€56m.
One of the firm’s outlets in St
Petersburg is amongst the top three
Papa John’s pizza chains out of
more than 3,300 worldwide.
The company hopes to use the
share issuance to expand, with
plans for more than 200 restau-
rants.
be looking to hit back at the wave of
Android products by tapping the mid-
market with its cheaper mobile.
Analysts say 2011 could be the year
when smartphones moves down into
the midmarket, as material costs
come down.
Telecoms analyst at Charles Stanley
Tom Gidley-Kitchin said: “Apple has
the choice of either cutting the cost
of its phones to capture that or to
Tillman mulls Jaeger sale
RETAIL
LUXURY fashion brand Jaeger may be
put up for sale by owner Harold
Tillman, after he received several
approaches for the 126-year-old brand.
Tillman, who also bought luxury
label Aquascutum in 2009, has
appointed investment bank
Rothschild to consider strategic
options for Jaeger, which may include
an outright sale worth £100m, accord-
CITYA.M. 14 FEBRUARY 2011
come out with a product that could
compete at that midmarket level.”
“They’re going to come up against
more and more competition, Google
is marching on.
“I can see that there’s an argument
for a cheaper phone. It shows that
Apple is going to compete all over the
pitch.”
A spokesperson for Apple declined
to comment.
Nokia chief
denies split
loyalties
▲
TELECOMS
BY HARRY BANKS
NOKIA CEO Stephen Elop yesterday
dismissed insinuations that his loyal-
ties were still with his former employ-
er, Microsoft, because he owned
shares in the software company and
did not hold any Nokia stock.
“I am not a Trojan horse,” Stephen
Elop said ahead of the Mobile World
Congress in Barcelona. The decision
to partner with Microsoft was made
by the entire board of directors, he
said.
On Friday, Nokia announced it was
teaming up with Microsoft in what is
seen as a last-ditch attempt to catch
up with Google and Apple in the fast-
growing smartphone market.
Asked if he still held shares in
Microsoft, Elop said: “As an executive
[at Microsoft], I have accumulated a
substantive number of shares,”
adding that he was legally prohibited
to sell his shares for a certain time
period after his departure but had
since begun to divest his holdings.
However, once negotiations had
begun with Microsoft he was once
again not allowed to sell due to insid-
er trading laws.
“I will get rid of them as soon as I
am allowed,” Elop said, noting he was
legally prohibited from buying Nokia
shares for the time being, but would
do so as soon as he could to demon-
strate his confidence in the Finnish
company.
Elop was drafted in from Microsoft
in September to halt Nokia’s decline.
As president of Microsoft’s Business
Division and a member of its team
responsible for overall strategy, he
was hired for his software know-how.
The 47-year-old Canadian became
the first non-Finn to head Nokia in its
145-year history, a sign of how Nokia
seeks to transform itself to claim back
market share and the innovative edge
it has lost to Apple and other rivals.
ing to weekend reports.
Fashion entrepreneur Harold
Tillman bought Jaeger in 2003 for a
small sum and was joined a year later
by chief executive Belinda Earl, a for-
mer boss of department stores group
Debenhams.
When Tillman took over the brand
had annual losses of £12m. The retail-
er now has more than 40 stores in the
UK and its last results showed earn-
ings of £7m on sales of £85.5m.
CITYA.M. 14 FEBRUARY 2011
Waitrose chairman Mark Price has been keen to open Channel Island stores Picture: REX
Head of CBI
makes first
big changes
▲
CITY MOVES
BY RICHARD PARTINGTON
THE new director of the CBI, John
Cridland, has made a raft of changes to
his senior management team in his
first major act at the top of the business
employers’ group.
Cridland, who took over from
Richard Lambert last month, has
appointed two of his staff to senior roles
as he looks to make his mark.
He has made Neil Bentley his right
hand man in his former role as deputy
director general.
Bentley was most recently the organ-
isation’s director of business environ-
ment and has spearheaded campaigns
Newly appointed CBI
director general John
Cridland has appointed
new staff as he looks
to make his mark.
to encourage firms to take up a more
active role in addressing climate
change.
He will now represent the organisa-
tion in meetings with business leaders
and ministers.
Katja Hall has also been appointed to
a newly created role as chief policy
director.
Most recently she worked with the
BBC on employee relations, change
management and reward.
She will now work to promote CBI
policy goals in Westminster and focus
on ways to help its members drive the
economic recovery.
John Cridland said: “At what is a piv-
otal time for business and the economy,
it’s vital the voice of business is heard in
government and across society. These
appointments form a key part of my
plans to revitalise and strengthen the
CBI’s offering to its members and help
businesses to deliver a strong recovery.”
Broughton secures backing for Tote bid BA severs ties with UBS
▲
LEISURE
BY RICHARD PARTINGTON
THE deputy chairman of British
Airways’ newly formed owner, Sir
Martin Broughton, has lined up sup-
port for his bid to buy state-owned
bookmaker the Tote.
The former Liverpool football club
chairman, who has been a racehorse
owner for many years, has received
backing from Penta Capital, a buy-
out firm.
The Glasgow-based investor,
which has stakes in the insurer
Esure and Eat sandwich shops, will
underwrite Broughton’s bid, accord-
ing to reports.
Fully funded offers for the book-
maker must be received by the mid-
dle of next month.
The Tote, which has a monopoly
on pool betting in Britain, and also
owns nearly 550 betting shops, is
Waitrose opens overseas
▲
RETAIL
BY JENNY FORSYTH
WAITROSE is set to open one of five
shops in the Channel Islands this
week, in its first owner-operated ven-
ture outside the UK .
The Thursday opening of its 21,000
square foot shop in St Saviour, Jersey,
comes just a week after the retailer
opened its first shop in Bahrain.
being sold by the government as
part of plans to reduce the deficit.
It could fetch as much as £225m,
with half of the proceeds to be
ploughed back into the racing
industry.
Other bidders for the business
include betting groups Gala Coral
and Betfred, as well as the billion-
aire Reuben brothers.
Investment bank Lazard is run-
ning the sale process.
However, unlike Bahrain, which is
operated as part of a licensing agree-
ment with Fine Fare Food Market, the
forthcoming Channel Islands branch-
es will be managed and operated sole-
ly by Waitrose.
The new shop is one of five branch-
es (three in Jersey and two in
Guernsey) purchased from Sandpiper
CI Ltd, a Channel Islands retail chain.
To meet local legal and accounting
AVIATION
BRITISH Airways has severed ties
with UBS, the corporate broker the
airline has used for 24 years.
The carrier has chosen Deutsche
Bank and Barclays Capital, following
its merger with Spanish airline
Iberia.
The newly formed International
Consolidated Airlines Group (IAG),
which listed in London and Madrid
News 15
rules, Waitrose now has two new
operating companies, Waitrose Jersey
Ltd and Waitrose Guernsey Ltd.
Waitrose described the opening as
a “major logistical feat”, as it involved
a two-week shop refit and sourcing of
500 local products.
The Channel Islands division will
bring 600 staff into the John Lewis
fold, including 400 who worked in
the shops bought by Waitrose.
More firms
use Human
Rights Act
▲
LAW
BY JENNY FORSYTH
THE number of businesses using the
Human Rights Act to fight their legal
disputes is rising, even as politicians
debate replacing it with a British bill
of rights.
Research shows the number of
reported court cases where business-
es used the act as part of their legal
case jumped 63 per cent from 19 to 31
last year. Those cases now account for
nine per cent of all reported human
rights cases.
But 10 years after the Human
Rights Act was adopted, it is facing
fresh challenges from politicians who
would rather Britain was not in thrall
to Strasbourg rulings.
And last week’s MPs’ decision to
defy the act, by deciding against vot-
ing rights for prisoners, has put its
usefulness in the spotlight again.
Legal information provider Sweet &
Maxwell said the number of business-
es using the Human Rights Act has
trebled since 2007-8. Firms last year
used it in cases such as challenging a
regulator’s decision as it could harm
profitability, preventing media cover-
age on privacy grounds and asking
the court for more time to prepare a
case, because their access to justice
would be hampered without it.
Sweet & Maxwell said the use of
human rights arguments by business-
es leapt in popularity after high pro-
file High Court claims by hedge funds
RAB Special Situations and SRM
Global Master Fund. These funds
argued the nationalisation of
Northern Rock had deprived them of
their property (their shares value) in
breach of the Human Rights Act.
Stephen Grosz, co-author of a Sweet
& Maxwell publication on Human
Rights, said: “The Human Rights Act
has been used in a much broader
range of cases than most people
would have predicted.”
last month, decided to end its rela-
tionship with UBS following a review
of its brokers.
The loss of the prestigious con-
tract will be a hit to UBS, after hav-
ing been British Airways’ broker
since its privatisation in 1987.
An IAG spokesperson said: “The
new company decided to review our
brokers and the result of that review,
and the pitch, was that Barclays and
Deutsche Bank won the business.”
 16 News
Project Merlin has to avoid mistakes of past
what has been dubbed project Merlin.
There is no doubt this agreement is
good news if it starts to rebuild the
banks’ relationship with the govern-
ment and wider society.
However, some of the stipulations
regarding lending to SMEs – £190bn
must be lent to businesses this year,
CITY COMMENT £76bn to smaller businesses – give
cause for concern.
STUART FRASER Of course lending to SMEs is impor-
tant; they will a key driver in econom-
L
AST week, George Osborne ic recovery and must be given every
announced to the House of opportunity to succeed and grow.
Commons that the four largest Moreover, banks can only make a
UK banks – HSBC, Barclays, RBS profit if they lend money to a range of
and Lloyds – have finally signed up to borrowers. The interest rate charged
THE
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choice of individuals and institutions. Our
150,000 members can be found in corporations
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world. Start making better decisions now.
Visit GARP.org/bonus to learn more.
and the conditions of the loan vary
with the bank’s analysis of the degree
of risk taken by making the loan.
If a bank forgoes making a profit by
declining to lend then it either views
the inherent risks as too great, or it has
more than adequate balance sheet
exposure to that type of business.
After the crisis, the banks were
rightly criticised for adopting an over-
ly relaxed attitude to lending and a
failure of risk management in their
quest for ever-increasing profits, result-
ing in huge losses that nearly caused a
financial meltdown.
It also became clear that SMEs were
overly reliant on bank lending as a
source of finance and did not have suf-
ficiently robust business models to
weather a sudden and unexpected
change in circumstances.
And yet we are now faced with the
situation that banks are being coerced
to lend to businesses they have already
rejected as too risky or as not having a
sustainable business plan, and to
encourage SMEs to take on more debt.
This conflict was highlighted when
the Chancellor announced that the
level of lending under project Merlin is
significantly higher than the level
banks had originally been considering.
Project Merlin also stipulates that
“chief executives of each bank, along
BPF chief Liz Peace has warned that landlords could challenge the JJB’s rent plan
JJB Sports to
fight for new
rent proposal
▲
CONSUMER
BY MARION DAKERS
JJB SPORTS was heading for a battle
with its landlords and other retailers
after confirming its company volun-
tary agreement (CVA) is to include the
renegotiation of two-fifths of its rent
payments.
The company has warned its
biggest landlords, including British
Land, Henderson and Prudential, that
if its terms for discount rent and ten-
ancy breaks for loss-making shops are
not accepted, the entire firm will go
down.
The struggling sports retailer,
which used a similar tactic when
faced with bankruptcy in 2009, is also
looking to close 45 stores this year and
a possible 50 further outlets by the
end of 2012.
KPMG, which is advising JJB, has
begun talks with landlords and hopes
to reach a deal within weeks.
The Wigan-based firm needs to win
support for the CVA from three-quar-
ters of its unsecured creditors and half
of all shareholders to avoid adminis-
tration.
Liz Peace, chief executive of the
CITYA.M. 14 FEBRUARY 2011
with relevant business area leaders
will have their pay linked to perform-
ance against the SME lending targets.”
This again creates a perverse incen-
tive we witnessed in pre-crisis times.
Management were paid to meet quan-
titative lending targets with little
thought on the quality of the lending.
If you were successful you pocketed
the bonuses and hoped you were pro-
moted before the defaults started to
come in, leaving it to your successor to
sort out.
We must be careful not to repeat the
mistakes of the past.
Stuart Fraser is the Policy Chairman at
the City of London Corporation
British Property Federation, said the
deal could face stern opposition from
property owners. “What has con-
cerned landlords are past cases where
a retailer had released a store through
a CVA and then returned to the same
locality shortly afterwards to take a
new store on reduced rent,” she said.
Meanwhile, one large retailer has
threatened to withhold its own rent
payments if landlords accept JJB’s
terms, according to the weekend
reports.
The unnamed retailer is said to
have called an emergency meeting
with other high street names to fight
JJB’s plans.
Rival sportwear firm JD Sports is
thought to have put its takeover
advances on hold while JJB garners
support for its CVA rescue package.
In December, investors including
Bill Gates backed a £31.5m fundrais-
ing to keep JJB Sports alive after dire
trading in the run-up to Christmas,
but the firm has warned that further
cash injections will be needed.
The firm’s lender, Bank of Scotland,
has already agreed to give the it lee-
way in regards to its existing debt
facilities.
CITYA.M. 14 FEBRUARY 2011 News 17

CITY MOVES | WHO’S SWITCHING JOBS Edited by Juliet Samuel in association with

Barclays Wealth
Solomon Soquar (pictured) has joined the
asset manager as head of the strategic solu-
tions group, which is a core part of its ultra-
high net worth operation. He will report to
Stefanie Drews. Soquar joins the firm from Citi
Private Bank, where he was in capital markets.
Previously, he has worked at Merrill Lynch as
head of distribution for the bank’s private
clients, Goldman Sachs in corporate finance
and Bankers Trust in capital markets.
Panmure Gordon as a corporate broking associate at the
Charlie Leigh-Pemberton will be joining firm, effective 14 March. His most
recent job has been at Finsbury PR for
the last three years, where he advised a
broad section of FTSE 250 clients. He
has also previously worked at
Pricewaterhouse.
AXA
The Chinese division of the French
insurer AXA Group , has appointed
Angela Chui as chief financial officer
and Isabel Lam as chief strategic man-
agement officer of AXA Hong Kong.
The company has also appointed Alger
Fung as member of the executive com-
mittee.
All three have been promoted from
within the firm.
Saffery Champness
The accountancy firm has named
Frederic Larquetoux as senior manager
in the firm's business advisory group.
He was previously with Ernst & Young.
Marsh
David Bidmead has been promoted to
be the chief executive of Marsh US, a
newly created role at the firm.
He moves to the job from his role as
leader of its US west zone, and has pre-
viously been chief executive of Marsh
Australia and region head of Marsh
Pacific. In his new role, he will be in
charge of guiding Marsh’s retail broker-
age operations and will report to Joe
McSweeny.
Citigroup
The financial services company has
appointed Antonio Miras as global head
of electronic execution for listed deriva-
tives, a newly created position in the
company.
Miras has previously worked at JP
Morgan for more than a decade.

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updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT +44 (0)20 7557 7245
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Infrastructure NEWS | IN BRIEF

Swedish PM in WikiLeaks row

A lawyer for WikiLeaks founder Julian
ated a "toxic atmosphere" in Sweden
with what he said was an inflammatory
statement about Assange. The Belmarsh
Booze, for about £90m, according to a
weekend report. The firm has appointed
advisers at accountancy group KPMG to

India taps UK
Assange has accused Sweden's prime
minister of damaging his client's chances
of a fair trial for alleged sex crimes by
portraying him as “public enemy number
one.” Assange’s lawyer Geoffrey
Robertson, opposing a Swedish bid to
Magistrates’ Court hearing has been
adjourned until February 24, when an
extradition ruling is expected.
Bargain Booze sale considered
Private equity firm ECI Partners is
carry out a strategic review, with options
including a sale or refinancing of Bargain
Booze. ECI took control of the business in
a £64m secondary buyout from BWG in
2006. Bargain Booze now has around
640 outlets, many of them run by fran-

shareholders
extradite the Australian from Britain, said mulling a sale of Britain'’ biggest off- chisees in the north of England. The com-
Prime Minister Fredrik Reinfeldt had cre- licence drinks retailer chain, Bargain panies were not available for comment.

more than double the total number

▲

INFRASTRUCTRE
BY MARION DAKERS
INFRASTRUCTURE India has become
the latest Indian firm to tap the UK
markets for investment cash, raising
£33m in a share placing.
Shares worth £25.5m at 60.5p each
have been placed with existing and
new investors and will start trading
on AIM on Thursday, the firm said at
the weekend.
Specialist energy investor
Guggenheim Global Infrastructure
has taken shares worth £2.5m in the
placing.
Guggenheim will also take 111m
Infrastructure India shares in
exchange for handing over its major-
ity stakes in an Indian hydropower
developer and logistics firm said to
be worth $191.5m (£119.7m) in total.
Guggenheim executives Tom
Tribone, Sonny Lulla and Robert
Venurus are set to joint the
Infrastucture board if shareholders
approve the deal at an EGM on 2
March.
Infrastructure’s directors Rupert
Cottrell and Timothy Walker have
taken 100,000 and 36,000 shares
respectively. The share placing will
of shares to 81.9m.
Cottrell, the firm’s chairman, said:
“The Indian infrastructure sector
continues to be a compelling story
and we believe that there are signifi-
cant opportunities in the sector
which the Placing will enable the
Group to pursue.
“The Placing will also further
enhance the ability of the Group to
bring both its existing investments
to completion and full revenue gen-
eration.”
Infrastructure India listed on the
Main Market of the London Stock
Exchange in June 2008 and trans-
ferred to trading on AIM in
November 2010.
Infrastructure India follows in the
footsteps of Indian big-hitters includ-
ing Jubilant Energy, which raised
$85m with an AIM float in
November, and SKIL Ports &
Logistics, which raised $120m in
October.
The main market has also seen a
flurry of Indian cash-raising in the
last year, with Essar Energy joining
the FTSE 100 last May and miner
Vedanta plotting a £4bn spin-off for
its copper unit later this year.

ANDREW DAWBER Generale, Collins Stewart and Numis

Securities. He was most recently glob-
AKUR PARTNERS al head of equity capital markets at
Kaupthing.

The Cass MBA is proof

Frost is responsible for Akur’s new
energy sector as well as running asset
management services. He gained a
PhD in climate change in 1999 and

you’re going places.

Infrastructure India has kept its core
team of advisers close since it floated.
Akur Partners chief executive Andrew
Dawber and managing director Tom
Frost have advised the company since
its IPO in 2008, when they worked for
the UK branch of now-defunct
Icelandic bank Kaupthing.
Akur was formed from the ashes of
Kaupthing in 2009, and counts Shaw
Group, New Britain Palm Oil and
Whitbread takeover target
Coffeeheaven among its clients.
Dawber began his career at Robert
Fleming and Co, and spent time in the
capital markets branch of Societe
during his banking career has focused
on companies involved in emissions
trading, clean technology and agricul-
ture. He previously worked for Numis
and Kaupthing.
Akur managing director and quali-
fied solicitor Anthony Richardson is
also advising Infrastructure India. Visit www.cassmba.com to register for our
Richardson has 11 years of investment
banking and corporate finance experi-
next information session on 17 February.
ence at KPMG, Taylor Wessing and
Numis Securities.
Infrastructure India is also being
advised by long-term broker Smith &
Williamson, and has taken on w
www.cassmba.com
ww.cassmba.com
Westhouse Securities as joint broker
to aid the current share placing.
 18 News
SuperGroup
chief taking
on the world
Julian Dunkerton tells John Dunne
about his caffeine-fuelled retail crusade
SUPERGROUP founder Julian
Dunkerton is not a man to stay still
for long. He says he will not rest
until his über-cool brands are sport-
ed by trendy young things across the
globe.
Dunkerton’s usual working day
starts at 8.45am when he gets to the
office in Cheltenham, after having
taken his daughters to school and
swilled down a triple espresso to get
his creative juices flowing.
“I cannot operate properly until I
have had my first coffee,” he says.
The retail guru, who floated his
phenomenally successful
SuperGroup last year, regularly
updates the market on his company,
whose breathtaking expansion –
particularly at a time when cash-
strapped consumers are reining in
their spending – is something of a
retail miracle.
But that’s not how the driven but
affable Dunkerton sees his meteoric
rise from market stall holder to dar-
ling of the City.
“I know what will sell and what
the cost should be,” he tells City A.M.
“There is a lot of hard work but I love
this business and we can expand
across the world – there is no limit.”
That expansion most recently
came in the form of the of buying
out the group’s French franchise
partner CNC for £34m.
SuperGroup’s shares have trebled
since last spring but Dunkerton –
who has an estimated fortune of
£170m – is in no mood to take his
foot off the accelerator. The CNC
deal sees Luc Clément, the founder
of CNC Collections, join the UK fash-
ion retailer as head of European
franchising. Dunkerton’s constant
refrain is that the people around
him are key to fuelling the success.
“Luc is just like me. He is very driv-
en and understands what has to be
done. It’s the same with Chris
Griffiths who runs our e-commerce
business – these are exceptional peo-
ple.
“My management style is that I
speak to them on a daily basis but I
know they are going in the right
direction.”
CITYA.M. 14 FEBRUARY 2011
Julian Dunkerton
says there is no limit
to how far his firm
SuperGroup could
expand across the
world.
ANALYSIS l SuperGroup
1,800 p
1,700 1,773
11 Feb
1,600
1,500
1,400
1,300
1,200
1,100
18 Nov 6 Dec 29 Dec 20 Jan 10 Feb
Dunkerton says he can’t imagine are well placed to take the cost rises
doing anything else outside in raw materials so it was a mistake
SuperGroup, whether in the retail to use those words – it’s important to
sector or in any other business. realise the impact they will have.”
However, he admits that there are Despite his success he is still will-
always lessons to be learned, particu- ing to learn and that, allied to his
larly after he issued a trading state- determination, are what make him a
ment including a warning over the powerful operator.
price of materials, triggering a dip in The market stall in Herefordshire
the company’s share price. where he started 26 years ago must
“I learned an important lesson in seem a long way off, but the fire in
that these things [the statement] the belly is clearly still there – aided
have to be looked at more closely. We by the coffee of course.
CITYA.M. 14 FEBRUARY 2011
Mergers are
needed to
keep bourses
in business
Stock exchanges
worldwide are
consolidating to
keep market share,
writes Alison Lock
TWO blockbuster stock exchange tie-
ups were announced last week, spark-
ing a rush of speculation that others
may follow. But what are the forces
behind this drive to consolidate, and
is it sustainable?
On Wednesday, the London Stock
Exchange agreed a merger with
Canada’s Toronto Metals Exchange, to
establish the world’s biggest trading
exchange by listings, with about
6,700 firms.
On Thursday, Germany’s Deutsche
Boerse and multi-country platform
NYSE Euronext revealed they were in
exclusive talks to merge to create the
world’s largest exchange by revenues
and profits.
And the consolidation drive isn’t
limited to national stock exchanges.
On Friday, two alternative European
trading platforms – Chi-X, with 18 per
cent of the cash equities market, and
BATS Europe, with seven per cent
market share – said they had extend-
ed merger talks started in December.
“This is like a game of chess and
The proposed mergers
may not run smoothly
these are the first moves being
played. There are many more moves
to be made and the outcome is far
from clear,” said Alasdair Haynes,
chief executive of Chi-X Europe.
“We have always said we expect to
see consolidation lead to the emer-
gence of about four to five big pan-
European or indeed global groups.”
Analysts are now speculating that
US and Asian exchanges may be next
on the consolidation trail, with
moves anticipated from the US
Nasdaq and China’s Hong Kong
Exchanges and Clearing.
Shares of stock exchanges globally
have soared and emerging market
bourses, from Bombay to Rio, are
looking increasingly like targets.
The consolidation comes in the
wake of US and EU competition regu-
lation brought in over the past three
years to put an end to national stock
exchanges’ monopolistic positions.
In Europe, the EU Markets in
Financial Instruments Directive
(MiFID) allowed multilateral alterna-
tive venues to set up cheaply and eas-
ily, while the US National Market
System regulation forced exchanges
to pass equity trades through the
cheapest provider.
The boom in trading venues has
Analysis 19
put market share and pricing under
intense pressure by dramatically frag-
menting where equities are traded.
“The LSE/TMX deal is merging two
companies that have been badly affect-
ed in their domestic markets by such TIME LINE | STOCK MARKET MERGERS
competitive pressures,” Haynes said.
The LSE had just a 24 per cent share 11 January 2011 exclusive merger talks March and November 2006
of transparent equity trading in BATS and Chi-X Europe announce extension 25 October 2010 LSE rejects two £2.4bn and £2.7bn takeover
Europe in January, while the NYSE
Euronext had 17 per cent and the
of merger talks Singapore Exchange in £5.2bn takeover of bids from Nasdaq
10 January 2011 Australian Stock Exchange December 2004
Deutsche Boerse 11 per cent, as trad- Deutsche Boerse and NYSE Euronext in 18 February 2010 LSE rejects £1.3bn bid from Deutsche Boerse
ing has split across many platforms. exclusive merger talks LSE takes over Turquoise platform January 2002
The rise of high frequency traders, December 2008 Euronext buys the London International
9 January 2011
which use computer algorithms to Deutsche Boerse ends merger talks with
London Stock Exchange in £4.3bn merger Financial Futures and Options Exchange
buy and sell in seconds for price
with Toronto Metals Exchange NYSE Euronext over valuations differences September 2000
gains, has exacerbated national
exchanges’ loss of market share. 22 December 2010 April 2007 The Paris, Brussels and Amsterdam stock
“HFTs don’t care about the stock BATS Europe and Chi-X Europe enter NYSE buys Euronext for €8bn (£6.8bn) cash exchanges merge to create Euronext
itself, they just want to buy and sell
so they are hugely supportive of frag-
mentation, as they have more venues
to use,” said Steve Grob, director of
group strategy at Fidessa, which pro-
vides trading software to exchanges.
“The big players have already tried
buying the small niche players and
have now decided to play more to
their competitive strengths by simply
getting bigger,” Grob said.
UBS analysts said common threads
to all the merger proposals were
growing scale and reach; technology
integration; product development
and diversity; and positioning for
more structural market change.
The LSE’s £4.3bn merger with TMX
is expected to generate cost savings of
£35m in the first year and £100m over
five years – eight per cent of its com-
bined cost base. A NYSE Euronext and
DB merger would produce €300m
(£255m) savings or 12 per cent of their
combined cost base.
But the proposed mergers may not
run smoothly. Some Canadian politi-
cians have opposed the LSE/TMX
match on concerns that the stock
exchange is a strategic national asset.
“A Canadian loss of control over its
own capital markets alone makes this
deal dead on arrival,” said one
Canadian columnist, David Olive.
Others have suggested the giant
mergers could breach competition
laws, either through size or their
dominant position in key markets
such as derivatives trading.
UBS analyst Arnaud Giblat said the
proposed DB/NYSE Euronext deal
“makes strategic sense” due to their
capabilities across several asset classes.
Grob describes the mega-mergers as
creating “multi-asset supermarkets”.
“By trading assets and derivatives,
these exchanges will be like a huge
Tesco, able to offer discounts to cus-
tomers to bring people in,” he said.
And the trend will continue. Haynes
believes smaller exchanges may
become targets. “We believe these two
announced tie-ups are very much just
a first move, and it is highly unlikely
to stop there,” Haynes said. “In both
cases, we think they might be posi-
tioning themselves to buy up further
exchanges – the Swiss or Spanish
bourses, for instance, are both still
independent.”
20 News CITYA.M. 14 FEBRUARY 2011

BHP and Anglo set

BEST OF THE BROKERS
ANALYSIS l Homeserve HOMESERVE
470
p 462.00 Numis Securities has raised its recommenda-
10 Feb tion on the household services firm from
450

430

15Nov 3 Dec 23 Dec 17 Jan 4 Feb

“hold” to “buy” with a target price of 545p.
The broker predicts strong international
growth alongside modest gains in the UK to
contribute to profits doubling over five years.
Numis believes that the firm requires very lit-
tle capital to grow the business .
for record results
MINING 2010. The company is on track to more than $15bn during 2011,

▲
ANALYSIS l Flybe FLYBE BY MARION DAKERS easily surpass its previous record which could eat into the cash set
annual profit of $19.6bn when it aside for shareholders.
345 p Investec rates the airline a “buy” with an
BHP BILLITON is expected to best reports its full-year results in June. Anglo American, which reports
314 unchanged 438p target price. Despite the its mining rivals with around Reports yesterday suggested that its full year results on Friday, is
10 Feb impact of severe weather on Flybe’s bottom $15bn (£9.4bn) profit when it BHP could also beef up its share expected to double its net profit to
335
line, the broker is impressed by the firm’s reports half-year results on buyback programme to around $5bn.
underlying growth and yield. It adds that Wednesday. $10bn in an effort to smooth rela- Analysts are expecting a bullish
Expectations are high for the tions with shareholders, who have outlook on the commodities mar-
325 Flybe has one of the best fuel hedging posi- Anglo-Australian miner after watched the collapse of three kets from chief executive Cynthia
tions in the industry, and can grow through bumper results from Rio Tinto and blockbuster deals in the last couple Carroll, following on from a 34 per
2010 29 Dec 10 Jan 24 Jan 7 Feb tie-ins with other airlines. Xstrata last week on the back of of years and are clamouring for bet- cent rise in profit last week from
soaring commodity prices. ter returns. diamond firm De Beers, which is
ANALYSIS l Shire pharmaceuticals SHIRE PHARMACEUTICALS Analysts at UBS have forecast BHP’s takeover of Rio Tinto fell 45 per cent owned by Anglo.
underlying earnings of $10.7bn, through in 2008, and last year the ANALYSIS l BHP Billiton
1,700
p
RBS maintains the drugs firm a “sell” but has with some cost inflation offset by Canadian government blocked
raised its target price by £1 to £13.75. The bro- 2,650 p
1,695.00 booming iron ore prices. BHP’s $40bn takeover of Potash 2,525.00
10 Feb ker believes that despite Shire’s solid fourth- The analysts are also looking for Corp. An iron ore joint venture 10 Feb
1,600 2,550
quarter results last week, the market an update on the impact of the with Rio Tinto was also shelved last
continues to underestimate the magnitude of storms in Queensland, Australia, year. 2,450
which brought the area to a stand- BHP will be under pressure from
1,500 risk from generic products. RBS is also con- still before Christmas. investors, who have seen Rio Tinto 2,350
cerned about Shire’s research division deliver- Other industry-watchers are raise its buyback to $5bn and dou-
15Nov 3 Dec 23 Dec 17 Jan 4 Feb ing fewer new drugs than expected. expecting even higher profits, as ble its dividend pay-outs last week. 2,250
the price of iron ore, copper and However, analysts are also
To appear in Best of the Brokers email your research to notes@cityam.com zinc have all made massive gains in expecting capital expenditure of 15 Nov 3 Dec 23 Dec 17 Jan 4 Feb

FTSE will open higher but

relief over Egypt may wane
MARTIN ON being led by the oil markets, with
WTI and Brent crude oil futures hav-
ing closely followed the timeline of
THEMARKETS events since the turmoil began.
Interestingly, despite an initial dip
on the news of Mubarak’s decision,
front month Brent held up
above the $100 level and indeed
went on to rally to set the highest
weekly closing price since
September 2008 – indicative per-
haps of a more-than-niggling con-
cern of traders that the tensions still
have potential to spread elsewhere
in the Middle East.
MARTIN SLANEY Nevertheless, from a technical
perspective, Friday’s close above
6,060 for the FTSE 100 was a signifi-
inflation report on Wednesday.
Friday’s above-consensus produc-
er input price and factory gate infla-
tion will have added to concerns
that the UK’s inflation problem will
spiral out of control, but we can
expect to see some light shed by the
report on which way the MPC is
leaning.
Also watch out for Barclays’ full-
year results due out tomorrow, with
bonus levels no doubt making the
headlines as pre-tax profits are fore-
cast to have halved to around £5bn,
down from £11.1bn a year ago.
Martin Slaney is director of GFT’s glob-
al dealing operations.

A
positive start is expected for cant level, and an open to the upside
stock markets this morning, this morning will have the market
continuing the relief rally on track to tackle the 6,090 target.
that began on Friday when The market isn’t short of other
President Mubarak’s decision to events that could breathe life into
stand down was announced. them this week, notably the release
GFT is quoting the FTSE 100 index of the Bank of England’s quarterly
to open up 15 points from Friday’s
close, at a level of 6,077.
Elsewhere in Europe the German ANALYSIS l FTSE 6,062.90
Dax is called up 23 points at 7,394, 6,100 11 Feb
and the French CAC is quoted up 10
points to open at 4,111. 5,900
The news from Egypt has cleared
some uncertainty for the markets,
5,700
but the situation is still far from
being resolved, with the path for a
transition to democracy hardly a 5,500
straightforward one, and after the
initial relief we may see direction 15 Nov 3 Dec 23 Dec 17 Jan 4 Feb

WALL ST WEEK AHEAD

T
he new national pastimes are
calling the top of the stock
market, commenting on
Middle Eastern affairs – and
buying dips.
Stocks have shown remarkable
resilience as investors snap up any
drop in prices, even in the face of
what seem like considerable risks –
an overbought market and a still
potentially explosive situation in
the Middle East.
Confidence in the economy,
strong earnings, and inflows into
equities from bond funds have
been enough to push indexes to
new highs on an almost daily basis
Bond funds have seen three
months of outflows. In that time
$23bn moved out of bond funds
and $16bn moved to equity funds,
 Business Features | Entrepreneurs
From banker to barman:
the man behind Boujis
Matt Hermer tells
Donata Huggins how
accidently buying a
cocktail bar made
him a millionaire
C
HUCKLING at Prince Harry falling
out of a nightclub just wouldn’t be
the same if the club wasn’t a club
like Boujis. Its reputation for exclu-
sivity and A-list guests make it the ideal
setting for high-class drama.
Matt Hermer, the owner and entrepre-
neur behind the bar, however, is not as
starry eyed about the place. Boujis is just a
small segment of Hermer’s Ignite Group
of clubs, bars and restaurants. The group
owns the Eclipse bars, Bumpkin restau-
rants and the Cocoon club among other
things. His latest venture, the Wyld club
inside the brand new W Hotel on Leicester
Square, opens tonight.
Most would imagine this sort of night-
club entrepreneur to be an extrovert – a
Peter Stringfellow character – but instead
he has a more laidback, everyday charm.
Probably because once upon a time he was
a Square Mile regular, working for
Hambros, Kleinwort Benson and ABN
AMRO in the City, and came to the bar
business quite by accident.
“I was drinking in what was my local – a
cocktail bar called Barfly on Walton Street
– with my friend, Paul Deeming, and we
found out that the bar was for sale, so we
agreed to buy it. To be honest, I don’t
really remember the conversation, but the
next morning I got a phone call from the
owner to discuss the sale, so I went along
and it became a serious thing.”
“I was on gardening leave from my pre-
vious job, and since I was looking for
something else anyway, I thought I’d give
running the bar a go. I had another job
lined up, but my boss offered me a year’s
grace, so if I screwed up I could come
crawling back – that was really kind of
him.”
“I took the leap because I was just so
bored of my job. I hated the fact I sat on
the same Tube everyday, saw the same
people and ate breakfast at my desk every-
day.”
“We must have got the worst deal possi-
ble from the previous owners, we just did-
n’t know what was good value. But it
pushed me into the industry, and for that
I’m grateful.”
For a year, Matt worked across the
whole business: as a barman, a doorman,
a waiter, the accountant and the manager.
“It helped me understand every area of
ENTREPRENEURS NEWS | IN BRIEF
BRANDS OF TOMORROW COMPETITION
Walpole, the British trade body for the luxu-
ry industry, has launched a competition to
find Britain’s brand of tomorrow. The prize is
mentoring from the people behind Britain’s
top luxury brands, including Liberty and
Smythson. To be eligible, companies need an
annual turnover between £100,000 and
£2m per year. Visit www.thewalpole.co.uk
for further information and an application
form. Applications closes next Friday on 18
February 2011.
Watch out for the Bouji-man
the business, but it also made me realise
why you hire professionals for these jobs.”
The bar was re-branded the Eclipse bar
and became profitable very quickly.
Deeming became a founder and director
and they begun expanding rapidly.
Hermer says their backgrounds certainly
made this easier: “We found it really help-
ful to already know a bit about how banks
and financing worked.”
Their business know-how can be seen
from their willingness to shut down bars
that were not making enough money:
CV | MATT HERMER
Company turnover: Over £15m
Number of staff: Over 250
Job title: CEO and co-founder
Age: 39
Born: Cardiff, Wales
Lives: Chelsea, London
Studied: History and Politics, Reading
University
Drinking: Vodka gimlet
BUSINESSES LOOKING TO GROW
One in four business entrepreneurs inter-
viewed by Investec Specialist Private Bank
will be turning to private equity and venture
capitalists to raise capital in 2011. Many
entrepreneurs are clearly looking to grow
their businesses this year, with 44 per cent
expecting to launch new ventures and a fur-
ther 31 per cent believing that it is “quite
likely” that they will do this. Investec are
looking to lend £1bn to these entrepreneurs
this year.
“We opened a number of Eclipse bars,
then closed a few, and now with a little
more knowledge we’re looking to open a
few more.”
But on his most famous customers, he’s
giving nothing away. When pressed on
the Princes and their antics, Hermer
brushes off the question: “I imagine they
like Boujis for the reasons that everyone
likes Boujis – a home from home with
great cocktails and fantastic music.” He
must know that the mystery makes the
club more appealing.
Reading: The Slap by Christos Tsiolkas
Idol: Henry Kissinger
Talents: Delegation
Favourite business book: What they don’t
teach you at Harvard Business School
Motto: “Work like you don't need money, love
like you've never been hurt, and dance like no
one's watching.”
First ambition: “To be happy. Done!”
FEMALE ENTREPRENEURS TO DOUBLE
Female entrepreneurs are to double over the
next thirty years, says the Avon Inspiring
Young Women report. The research conduct-
ed by the London School of Economics inter-
viewed women aged between 16-24 years
old to see how the next generation’s women
felt about entrepreneurship. Almost three-
quarters (72 per cent) said starting their
own business and being their own boss
appealed to them and two-thirds (60 per
cent) expressed interest in doing so.
21
UNIVERSITY IS
A WASTE OF
TIME FOR MOST
SIMON DOLAN
ENTREPRENEUR, SJD ACCOUNTANCY
I
BELIEVE that for the vast majority, uni-
versity is completely pointless. I think
that three years of “further education”
fails to educate the masses about real
life and the ways of the world. It’s counter-
productive and robs people of learning how
the real world works, rendering them brain-
dead system surfers.
The media is ablaze with discussion about
the alarming number of jobless graduates
and the true value of university. Tuition fees
are set to rise at an exorbitant rate and stu-
dents are leaving with huge financial debts
to repay. Yet we are hearing unprecedented
accounts of graduate unemployment: one in
five graduates, having been told a degree
would make them irresistible to employers,
are currently unable to find work.
WHERE THE JOBS ARE
The fact is, small and medium-sized
businesses account for 99 per cent of all the
companies in the UK. This is where the jobs
are, and most employers hire according to
skills and experience. Nine out of ten have
explicitly stated this. I implore school leavers
to reconsider the hand-holding education sys-
tem, to take on the challenge and look beyond
job dependency. There is a gaping budget
deficit in the UK that could be remedied by
addressing the country’s shortfall of entrepre-
neurship.
I was thrown out of school at 16 with vir-
tually no qualifications, limited prospects and
fewer ideas. Selling cheese and eggs on a
market stall for a period of time taught me
the gift-of-the-gab, commitment to hard
graft and strong arithmetic. I built on my
skill with numbers and started a simple busi-
ness handling accounts and tax returns for
small, local businesses. After one initial
investment of £10 for an advertisement for
my services and 17 years work – at the age
of 41 – I now own a business empire span-
ning financial services, aviation, publishing
and motor racing making over £6m a year in
net profit.
LIVING PROOF
I’m living proof that with a sizeable amount of
tenacity, relentless commitment, and a big
idea, we all have the power to create the
tomorrow we want and run a successful busi-
ness. If you want to live in one of Britain’s
richest areas, own a fleet of planes and get a
place on The Sunday Times Rich List, get back
to where the real action is and start running a
business.
To pass on this vision, I’ve published an
autobiographical guide called How To Make
Millions Without A Degree in the hope that I
can impart some of the confidence, tech-
niques and ideas necessary to turn any idea
into a great business. By learning these tech-
niques and by practicing and improving over
time, you can be 100 per cent, 200 per cent
or even 300 per cent better than you are
now.
One of the most important of these skills is
resilience and self-belief. With conviction in
your idea, intense engagement, passionate
drive and by giving yourself time, you can
start your own business and get rich – with-
out the regressive 3-year stint at university.
How to Make Millions without a Degree is
published by Matador
Agree with Simon Dolan? We welcome
debate. Do you have a strong view on small
business and entrepreneurship in the UK?
Email donata.huggins@cityam.com
 22 Business Feature | Walking with the Wounded CITYA.M. 14 FEBRUARY 2011

After Afghanistan, a battle with ice

and solitude on the way to the Pole
Nicky Woolf meets
four injured soldiers
who are taking on
one of the globe’s
toughest challenges

P
RINCE Harry is not there when I
meet the Walking with the
Wounded trek team. They have just
finished an eight-day training
excursion in the glacial wilderness above
the Norwegian ski resort of Beitostolen;
their longest yet, an expedition that saw
them trapped in their tents by 50-mile-an-
hour winds for 38 hours on end. But the
charity’s royal patron is hoping to join the
team for a part of their epic Polar journey.
If His Royal Highness is expecting an
easy time, he is mistaken. The four wound-
ed soldiers at the centre of this trip have
been training hard, are spirited and have
everything to prove. They plan to make the
full 250-mile trek across the wind-blasted
Arctic wasteland, facing down the threat
of cracks in the constantly-moving ice,
frostbite and polar bears, in 25 days.
Should they succeed, they will be the first
amputees and severely disabled people to
make the trip.
Their guide is the legendary Norwegian
adventurer Inge Solheim, who has been
trekking in the Arctic and other extreme
environments for nearly two decades.
The wounded soldiers will also be joined
by logistics expert Henry Cookson, a
former City boy who worked for Goldman
Sachs before quitting to join his first Polar
expedition at 28; the charity’s founders, Ed
Parker and Simon Dagleish, and of course, a team to cover areas where their injuries The team return time the metre-thick ice will be moving you might have forgotten or suppressed.
army commitments allowing, the Prince might have left them weaker. home after their beneath them – if they are unlucky and it Some people can fall into a depression.”
himself. “I can’t put up a tent, or cook, as effec- eight-day training moves against them, they could trek for a “We will all go through phases on the
I speak to Solheim as the team break tively as some of the others,” says Hewitt. trek dragging their day and gain no distance at all. Beneath trip,” he continues. “The important thing
camp on the shores of a vast frozen lake. “But then, Guy simply cannot pull the gear behind them the ice, in which massive cracks can is that we lift each other when we can.”
He is keen to stress the enormity of the same weight that I can – he’s pulling on a appear, the Arctic Ocean is three or four Solheim himself is relishing the
task the four wounded men face. “This is a prosthetic leg. And while he’s extremely Picture: kilometres deep. The team will have to put prospect of the lonely walk through the
full-on, hardcore trip,” he says. “To prove robust and very capable, he will not pull as Richard Pohle on weight before departure – polar explor- wilderness. “For me it’s a luxury to be able
certain points to the world”. He tells me much as I can… I’ve got two legs that are ers need 15-20 per cent body fat as energy to follow a chain of thought from A to Z
the team have opted to trek unsupported, fully-functioning. So if needs be, I’ll pull reserves; they will burn around 8,000 calo- without any disturbance,” he says.
dragging all of their supplies and equip- more weight than him. It’s this teamwork ries every day. “Nobody is calling you.”
ment themselves on carbon-fibre sledges that’s essential.” As soldiers, the team are used to push- Hewitt is also looking forward to
or “pulks” which will each weigh upwards Disney goes further. “I can still run ing their bodies to extremes. I get the having time and space to think. “Your
of 100 kilos when fully laden with provi- faster than some people, carry more impression that the training has been mind goes everywhere you can imagine.
sions, tents and gear. Helly Hansen, which weight than some people. What I hope cathartic, allowing them to approach You’re thinking about all sorts. Home,
is providing the team with high-tech cold- about this trip is that people look at it and their injuries as physical barriers to be family, friends, past experiences, what
weather suits, estimate the team’s think ‘that’s actually quite hard, that’s overcome instead of existential catastro- you want to do next. Somewhere warm,
clothing will receive six years worth of something that not every able-bodied per- phes. The psychological challenge facing somewhere hot...”
wear in a single month. son could do.’” them is, if anything, tougher than the He grins. “...Beautiful women, and a
“The North Pole is the most challenging The more time I spend with them, the physical one. beach – you’re dreaming then. For me, I’m
place,” Solheim continues. “It’s also the clearer the military-honed resilience and Solheim outlines what the team can going to spend a lot of time on this trip
most rewarding place. You feel such a extraordinary courage of the four men expect to be happening in their heads as thinking about the future.”
sense of achievement when you've – not becomes. Van Gass compares the trek with they trek across the vast and shifting ice- So what is the next step for the explor-
conquered the place, but lived there, the battlefield. “On a tour [of duty], you’re floes. “I’m preparing the guys for the emo- ers? There is talk of a South Pole trip, and
worked through it alone and with your fighting an enemy that are shooting back. tions that will occur, because I’ve seen Disney tells me that he and Hewitt want
team – and it’s an amazing feeling to stand At the Pole, it’s the elements that you need them 100 times before. Homesickness, to become professional adventurers
on top of the world, knowing that you to attack and conquer. The wind, the cold. regret. You’re walking alone and isolated together. But the answer from everyone is
have come there of your own means. All of Controlling your body temperature. inside your little hood for hours every day, the same. “Let’s get to the Pole first. Then
us will change from this experience.” Covering up against the risk of frostbite.” getting time to think about things that we’ll see.”
The four servicemen at the centre of the I ask Young about how he deals with the
expedition were all injured while on tours punishing routine. “You’ve got to break it FACT BOX | HOW YOU CAN HELP
with the British military in Afghanistan. down,” he tells me. “That’s how I did it
Guy Disney and Martin Hewitt are cap- when I was injured. I went from being
tains; the former lost a leg below the knee someone at the peak of fitness, to lying on More soldiers committed suicide after the Falklands tance, and aims to act pre-emptively to deal with
in a rocket-propelled grenade attack, the a bed, people washing me. I found that war than were killed during the conflict. Walking post-traumatic stress disorder; and Help for Heroes,
latter was shot in the shoulder in a fire- very, very difficult. I had to set myself with the Wounded exists to prevent that statistic the most high-profile servicemen’s charity, founded
fight, which left his right arm paralysed. small goals, like, ‘I will clean myself today’. from ever happening again. It raises money for a in 2007 by Bryn Parry.
Stephen Young, a sergeant, suffered a It took weeks at a time. But every time I large number of third sector organisations involved
broken back after a vehicle carrying him achieved one, I’d say ‘right: what’s next’. in the rehabilitation and retraining of wounded WWTW Founders Ed Parker and Simon Dagleish
ran over an IED – improvised explosive “I remember setting myself the goal to
device – throwing him against the roof. walk to the window. It was four metres
British service personnel, including Enham, set up in met at Sandhurst, and founded the charity after
Jaco Van Gass, a private and the baby of the away. I got up one day and walked to the 1918 to care for “the effects of amputations, neuras- Parker’s nephew lost his legs in an IED explosion in
expedition at 24, lost an arm below the windowsill and back, and I was absolutely thenia, shellshock or fever”; BLESMA, the British Afghanistan. It aims to raise two million pounds
elbow and suffered internal and external drained, exhausted. But that is exactly Limbless Ex Service Men’s Association; Skills Force, from the Polar expedition.
blast damage down his left side in another what you need to do.” which sends mentors into schools; The Warrior
RPG attack. The eight men will have a month-long Program, an NGO that provides psychological assis- To donate, go to walkingwiththewounded.org.uk
They tell me that they work together as window to reach their goal. During this
 Wealth Management | Spread Betting
23

Don’t trust THE TIPSTER

YELLING IT
FROM THE

everything ROOFTOPS

H
AVING lost 98 per cent of their
value over the last four years,

people say shares in directory listings company

Yell are clearly struggling. The land-
scape has shifted beyond recognition as
online search services proliferate and
there is little reason to expect any funda-
mental change. With earnings due for
release on Tuesday of next week, any
insights as to where the company intends
Baseless rumours can catch out to go next will be keenly awaited by the
investment community. IG Index quotes a
traders, writes Daniel Knowles price of 10.72p-10.88p.
WorldSpreads is now offering a plat-
form to trade the gap between Brent

T
RADERS short on oil suffered a brief
shock last Thursday. In early trading,
a rumour began circulating, origi-
nating from a relatively minor Arab
news site that the King of Saudi Arabia had
died. Despite the implausible nature of the
story – it was reported that King Abdullah
died during a heated phone debate with
Barack Obama – many traders were
spooked enough to bid the oil price up by a
dollar.
When it later became clear that the King
is still alive, the price dropped back again.
But the episode serves as an illustration of
how sensitive financial markets are to new
information – and to rumour. Had King
Abdullah actually died, the uncertainty of
the Saudi succession would undoubtedly
have pushed up the oil price substantially –
given that, even the most baseless asser-
tions can have an impact on price.
But then rumour, gossip and wild specu-
lation have always been bugbears for
investors. In 1992, George Bush senior was
dining with the Prime Minister of Japan,
Kiichi Miyazawa, when he fainted and
vomited into Miyazawa’s lap. The event
provided endless ammunition for satirists,
but as CMC Markets analyst Michael
Hewson recalls, “dollar-yen collapsed – all
the bids disappeared and you couldn’t sell
it fast enough.”
When it became apparent that Bush was
not actually on the brink of death, the dol-
lar rapidly recovered – but not before a few
traders had got burnt.
And while rumours about political lead-
ers cause the most panic, others have their
George Bush senior
unsettled markets in
1992
Photo: GETTY
impact too. In 2008, a “citizen journalist” have to ask: “When is a rumour not a
reported that the CEO of Apple, Steve Jobs, rumour, but actually inside knowledge?”
had suffered a heart attack and died. The The rumours that cause the biggest rip-
report was widely picked up and Apple’s ples are the most plausible ones – such as
share price collapsed from $105 to around takeover bids, or succession crises.
$95 in less than twenty minutes before The death of King Abdullah is plausible,
recovering equally rapidly. for example, because he is known to be ill
So what can traders do to avoid getting and because the Saudi Arabian monarchy
caught out? According to Hewson, the is famously secretive. Similarly, Steve Jobs
problem with rumours is that traders has had several serious health problems
and is very high profile. Other rumours
ANALYSIS l Apple's share price plunged when Steve Jobs was have much less effect.
rumoured to have died in 2008 Ultimately, traders have to make a
106 $ judgement call based on the quality of the
news source and the plausibility of the
104 news – the important thing is not to
instantly panic and make a move based on
102 incomplete information.
But if traders are tempted to try to get
100 an inside edge by propagating their own
rumours, another story should deter
98 them. Last year, the Thai stock market
plunged 8 per cent after a rumour circu-
96 lated that the King was dying. Four traders
10:00 AM 11:00 AM were eventually arrested and imprisoned.
Crude and West Texas Intermediate
(WTI) crude oil. The spread has grown to
$14.45-$14.50. With the current uncer-
tainty in Middle East countries showing
no sign of calming down this may be an
area for investors look to.
Domino’s Pizza releases its latest
earnings tomorrow with analysts expect-
ing another positive update. The upside
has been held in check for two weeks
now by the 50-day moving average, but
any dips to the 515p level should be used
as a buying opportunity. A break above
545p could see the price head towards
its 580p high. Spread Co offers a spread
on Dominos Pizza of 531.1p–532.4p.
It’s also a big week for sterling this
week in the wake of last week’s Bank of
England (BoE) rate meeting. We have the
CPI figures as well as the BoE quarterly
inflation report, which could well ratchet
up the pressure for an increase in interest
rates. Sterling could well endure some
significant volatility. The CMC Markets
spread on sterling-dollar is $1.59755-
$1.5978.
Advertising and marketing group WPP
is trading near its 52-week high as it
forced its way through the critical 800p
resistance level. On the technical side, as
long as 796p remains a support level, the
stock could see further upside. Talk of
further expansion abroad by CEO Martin
Sorrell – and the recent purchase of a
stake in Mindshare South Africa – should
also help. Capital Spreads quotes a price
of 818.5p–820.5p. Daniel Knowles

THE WEEK AHEAD in association with

COMPANY NEWS ECONOMICS NEWS ECONOMICS NEWS POLITICAL NEWS

l Barclays will release its full l The Bank of Japan announces its l On Wednesday, British unem- l Barack Obama will present his
year results tomorrow. headline interest rate decision ployment statistics will be budget request for the
tomorrow. released (ILO survey 2012 fiscal year to
l Miner BHP Billiton will release It is expected to hold rates steady rate and claimant Congress today.
its half year results on at their current level of 0–0.10 per count rate). The US is running a
Wednesday. cent. 10 per cent budget
l Wednesday deficit, and House
l French bank Societe Generale l The preliminary estimate for will also see the Republicans are
will release its fourth quarter French fourth quarter GDP growth release of the likely to respond
results on Wednesday. will be released tomorrow at Bank of England aggressively.
6:30 am. quarterly inflation
l On Thursday, report. l In Iran, the
bank BNP l As will the equiva- opposition leaders
Paribas will lent German fourth l The Federal Open Mehdi Karroubi and
release its quarter figure at 7:00 Market Committee min- Mir-Hossein Mousavi will
fourth quar- am. utes from the meeting of 25-26 lead a protest today in solidarity
ter results. January will also be released on with Egyptian protesters.
l British inflation Wednesday at 7:00pm.
l BAE statistics (RPI and l Tomorrow, the controversial
Systems will CPI) are also released l On Thursday, the European Parliamentary Voting Systems
release its full tomorrow at 9:30am. Monetary Union (EMU) consumer and Constituencies bill will be
year results on confidence index figure will be debated again in the House of
Thursday. l The US Empire State released. Lords. The purpose of the bill is to
Manufacturing survey data will also introduce a referendum to change
l Miner Anglo-American will be released tomorrow at 1:30pm, l Friday will see the release of UK the voting system and to reduce
release full year results on Friday. as will the US retail sales figures. retail sales statistics. the number of MPs
 24 Wealth Management CITYA.M. 14 FEBRUARY 2011

FTSE 100 FTSE 250 FTSE ALLSHARE DOW NASDAQ S&P 500 / 1.1831 0.0003 /$ 1.3523 0.0073
6062.90 11797.77 3143.89 12273.26 2809.44 1329.15 /$ 1.6003 0.0085 /£ 0.8451 0.0001
42.89 76.17 21.58 43.97 18.99 7.28 /¥ 133.69 0.3733 /¥ 112.98 0.3450
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 Yule Catto & Co . . . . .236.5 1.0 240.5 106.1 Brewin Dolphin Ho . .165.8 2.1 177.5 114.0 Rexam . . . . . . . . . . . .375.0 6.3 375.3 276.5 Amlin . . . . . . . . . . . . .391.5 -0.5 433.0 366.8 BHP Billiton . . . . . . .2525.0 41.0 2616.0 1684.5 Great Portland Es . . .374.0 0.4 377.0 279.6 Marston's . . . . . . . . . .105.1 -0.3 117.1 85.1
Camellia . . . . . . . . .10032.0 144.010700.0 6900.0 Smiths Group . . . . .1426.0 16.0 1429.0 1006.0 Beazley . . . . . . . . . . . .133.5 -0.6 135.0 105.4 Centamin Egypt Lt . .149.0 9.0 197.1 111.0 Hammerson . . . . . . . .429.8 -0.4 439.9 336.3 Millennium & Copt . .583.0 7.0 595.0 368.5
Tsy 9.000 11 . . . . .103.43 -0.06 111.3 103.4 CONSTRUCTION & MATERIALS Charles Taylor Co . . .163.3 0.0 240.0 153.0 Brit Insurance Ho . .1055.0 3.0 1059.0 728.0 Eurasian Natural . .1015.0 16.5 1266.0 818.0 Land Securities G . . .700.0 2.0 707.0 545.0 Mitchells & Butle . . . .338.4 -2.5 361.0 269.1
Tsy 3.250 11 . . . . .101.98 -0.01 104.1 102.0 GENERAL RETAILERS
Balfour Beatty . . . . . .351.3 3.7 352.0 229.8 City of London Gr . . . .91.0 0.0 94.5 62.0 Catlin Group Ltd. . . .390.0 -3.6 394.7 319.9 Fresnillo . . . . . . . . . .1469.0 29.0 1682.0 720.5 SEGRO . . . . . . . . . . . .321.3 2.8 341.3 250.2 National Express . . .254.9 0.8 259.6 196.3
Tsy 2.500 11 . . . . .309.37 -0.01 311.1 306.4 Keller Group . . . . . . .642.0 -7.5 784.5 515.0 City of London In . . .440.3 0.3 461.5 266.5 Brown (N.) Group . . .274.3 -5.6 311.2 206.5 CPP Group . . . . . . . . .301.5 1.1 329.0 225.0 Gem Diamonds Ltd. .296.1 13.1 300.0 186.3 Shaftesbury . . . . . . . .451.0 2.3 460.1 349.3 PartyGaming . . . . . . .174.5 -2.1 334.5 171.8
Tsy 4.250 11 . . . . .100.22 -0.03 103.7 100.2 Kier Group . . . . . . . .1235.0 8.0 1383.0 886.5 Close Brothers Gr . . .841.0 -3.0 888.5 664.0 Carpetright . . . . . . . . .690.5 -0.5 973.0 636.0 Hiscox Ltd. . . . . . . . . .376.5 1.7 399.0 327.9 Hochschild Mining . .520.0 7.5 658.0 234.0 Punch Taverns . . . . . .70.0 -0.1 101.0 58.0
Tsy 9.000 12 . . . . .111.29 -0.04 118.0 111.1 Collins Stewart . . . . . .90.0 0.5 94.0 67.3 Debenhams . . . . . . . . .64.7 -0.4 79.0 53.0 Jardine Lloyd Tho . . .635.5 4.5 642.5 471.0 Kazakhmys . . . . . . .1558.0 10.0 1671.0 965.0 SOFTWARE & COMPUTER SERV. Rank Group . . . . . . . .128.9 -0.1 138.5 89.0
Tsy 5.250 12 . . . .105.36 -0.01 108.7 105.4 ELECTRICITY Evolution Group . . . . .70.0 2.5 127.0 67.0 Dignity . . . . . . . . . . . .648.5 -3.0 726.5 598.0 Lancashire Holdin . . .585.0 7.5 647.0 442.0 Kenmare Resources . .40.5 0.6 41.1 9.3 Autonomy Corporat 1600.0 -7.0 1975.0 1271.0 Restaurant Group . . .294.7 0.7 310.9 188.3
Tsy 5.000 12 . . . .104.21 -0.02 107.7 104.2 Drax Group . . . . . . . .403.9 5.8 421.0 326.3 F&C Asset Managem .86.5 -2.6 92.9 47.5 Dixons Retail . . . . . . .22.0 -0.2 36.5 20.4 RSA Insurance Gro . .140.0 0.7 140.6 114.8 Lonmin . . . . . . . . . . .1845.0 67.0 2113.0 1355.0 Aveva Group . . . . . .1710.0 10.0 1739.0 1007.0 Sportingbet . . . . . . . . .51.0 -0.3 79.9 50.2
Tsy 4.500 13 . . . .105.99 0.00 109.2 106.0 Scottish & Southe . .1181.0 8.0 1258.0 1010.0 Gartmore Group Lt . .108.7 -0.4 210.0 88.5 Dunelm Group . . . . . .450.0 -5.4 550.0 325.3 Petropavlovsk . . . . .1068.0 21.0 1365.0 860.5 Computacenter . . . . .419.6 2.6 457.5 260.0 Stagecoach Group . .214.0 -0.4 224.0 160.7
Tsy 8.000 13 . . . . .116.40 0.00 121.3 116.4 LIFE INSURANCE
Hargreaves Lansdo .570.0 0.0 599.0 311.5 Halfords Group . . . . .409.7 3.7 550.0 376.1 Randgold Resource 4891.0 -3.0 6655.0 4486.0 Fidessa Group . . . . .1700.0 65.0 1722.0 1269.0 Thomas Cook Group 194.7 1.9 272.0 171.7
Tsy 2.500 13 . . . .279.42 0.02 280.0 263.9 ELECTRONIC & ELECTRICAL EQ. Helphire Group . . . . . .14.3 0.3 60.3 11.8 Home Retail Group . .232.8 0.2 295.1 188.5 Aviva . . . . . . . . . . . . . .456.9 0.1 464.0 294.2 Rio Tinto . . . . . . . . .4623.5 74.5 4712.0 2812.0 Invensys . . . . . . . . . . .340.9 1.1 364.3 230.2 TUI Travel . . . . . . . . . .243.6 0.2 308.4 190.0
Tsy 5.000 14 . . . .109.25 0.07 114.1 109.2 Domino Printing S . .673.5 3.5 689.0 337.9 Henderson Group . . .166.8 0.6 167.3 115.3 Inchcape . . . . . . . . . .390.8 -0.4 410.9 237.1 Legal & General G . . .122.7 3.9 123.9 69.8 Vedanta Resources 2361.0 40.0 2934.0 1839.0 Logica . . . . . . . . . . . .143.8 1.8 147.9 101.7 Whitbread . . . . . . . .1841.0 4.0 1887.0 1266.0
Tsy 8.000 15 . . . .123.79 0.09 131.6 123.7 Halma . . . . . . . . . . . . .340.0 0.5 366.6 239.5 Highway Capital . . . . . .7.0 0.0 8.5 6.0 JD Sports Fashion . .875.0 24.0 933.5 560.5 Old Mutual . . . . . . . . .131.5 -0.8 145.2 100.7 Xstrata . . . . . . . . . . .1475.5 33.0 1535.0 845.8 Micro Focus Inter . . .408.6 -2.9 546.5 276.0 William Hill . . . . . . . . .185.2 0.5 216.5 155.5
Tsy 7.750 15 . . . .106.25 -0.04 112.2 76.0 Laird . . . . . . . . . . . . . .172.0 -1.1 179.0 98.8 ICAP . . . . . . . . . . . . . .541.0 -6.5 570.5 323.0 Kesa Electricals . . . .132.9 -2.6 174.0 99.2 Phoenix Group Hol . .654.0 7.0 758.0 557.5 Misys . . . . . . . . . . . . .341.5 -1.8 349.3 201.5
Tsy 4.750 15 . . . .108.77 0.11 114.7 108.5 MOBILE TELECOMS AIM 50
Morgan Crucible C . .269.7 5.7 274.3 161.5 IG Group Holdings . .462.2 -1.7 553.0 362.4 Kingfisher . . . . . . . . .251.8 -1.2 271.3 198.5 Prudential . . . . . . . . .724.0 6.5 731.5 487.5 Sage Group . . . . . . . .298.2 4.8 302.0 222.1
Tsy 2.500 16 . . . .312.45 0.07 318.5 292.5 Renishaw . . . . . . . . .1620.0 6.0 1680.0 575.5 Intermediate Capi . . .338.0 -1.2 360.3 240.4 Marks & Spencer G . .368.0 -3.6 427.5 323.4 Resolution Ltd. . . . . .273.0 7.6 328.6 211.3 Inmarsat . . . . . . . . . . .715.5 5.0 821.0 606.5 SDL . . . . . . . . . . . . . . .656.5 25.5 656.5 421.0 Abcam . . . . . . . . . . . .346.0 -1.0 393.0 208.0
Tsy 4.000 16 . . . . .105.11 0.18 111.4 102.8 Spectris . . . . . . . . . .1370.0 -6.0 1418.0 740.5 International Per . . . .330.0 -4.0 386.6 183.3 Mothercare . . . . . . . .515.0 -7.0 660.0 491.2 St James's Place . . . .306.5 1.1 310.9 204.2 Vodafone Group . . . .180.0 -0.7 180.9 129.5 Telecity Group . . . . . .505.0 9.0 532.5 363.0 Albemarle & Bond . .290.0 0.0 334.0 218.0
Tsy 12.000 17 . . .128.16 -0.02 185.9 126.8 International Pub . . . .114.3 0.7 118.3 110.7 Next . . . . . . . . . . . . .2000.0 -63.0 2344.0 1817.0 Standard Life . . . . . . .240.0 2.9 241.2 173.0 Amerisur Resource . .27.0 1.0 28.0 11.5
Tsy 1.250 17 . . . .106.92 0.03 111.1 102.8 EQUITY INVESTMENT INSTRUM. NONEQUITY INVESTM. COMM. SUPPORT SERVICES
Investec . . . . . . . . . . .471.1 -2.3 562.0 424.0 Sports Direct Int . . . .159.8 0.8 174.7 92.3 MEDIA Archipelago Resou . . .62.5 -0.8 64.8 30.0
Tsy 8.750 17 . . . .133.06 0.14 142.2 132.4 Aberforth Smaller . . .680.5 7.0 685.5 495.0 IP Group . . . . . . . . . . . .37.5 0.5 54.0 28.0 WH Smith . . . . . . . . . .475.8 -2.0 523.0 398.2 Genesis Emerging . .503.5 10.9 568.0 412.0 Aggreko . . . . . . . . . .1520.0 15.0 1685.0 901.0 ASOS . . . . . . . . . . . .1825.0 -65.0 1900.0 438.0
Tsy 5.000 18 . . . .109.93 0.17 117.6 107.4 Alliance Trust . . . . . .370.5 3.5 377.9 293.5 Jupiter Fund Mana . .327.5 -2.6 335.5 180.3 4imprint Group . . . . .245.0 4.0 275.0 120.0 Ashtead Group . . . . .186.5 -1.1 189.3 77.0 Aurelian Oil & Ga . . . .81.0 -0.5 87.0 33.5
Tsy 4.500 19 . . . .105.64 0.23 113.8 102.5 HEALTH CARE EQUIPMENT & S. OIL & GAS PRODUCERS
Bankers Inv Trust . . .425.4 2.2 427.7 337.0 LMS Capital . . . . . . . . .53.8 -0.3 56.3 40.0 Aegis Group . . . . . . .146.9 -1.0 150.2 103.6 Atkins (WS) . . . . . . . .697.0 2.0 792.5 556.5 Avanti Communicat .605.0 21.5 735.0 375.0
Tsy 3.750 19 . . . . .99.68 0.25 107.7 95.9 BH Global Ltd. GB .1106.0 12.0 1178.0 1082.0 London Finance & . . .20.5 0.0 21.5 16.5 Smith & Nephew . . . .728.5 1.5 730.0 537.5 Bloomsbury Publis . .111.0 -3.0 129.0 105.3 Afren . . . . . . . . . . . . . .155.1 2.6 161.7 79.2 Babcock Internati . . .571.0 10.0 635.0 492.8 Avocet Mining . . . . . .217.8 2.5 240.0 88.0
Tsy 4.750 20 . . . .106.86 0.25 115.9 103.8 BH Global Ltd. US . . . .10.9 0.1 11.6 10.7 London Stock Exch .933.0 25.5 933.0 544.0 Synergy Health . . . . .897.0 -10.0 948.0 562.5 British Sky Broad . . .752.5 -6.5 768.0 525.0 BG Group . . . . . . . . .1524.0 51.5 1530.5 984.0 Berendsen . . . . . . . . .440.9 4.9 449.9 360.2 Blinkx . . . . . . . . . . . . . .92.5 0.0 102.0 12.3
Tsy 2.500 20 . . . .314.43 0.07 325.7 291.3 BH Macro Ltd. EUR . . .16.6 0.2 17.2 15.8 Man Group . . . . . . . . .309.0 1.6 311.0 201.9 Centaur Media . . . . . . .70.0 0.0 72.0 45.8 BP . . . . . . . . . . . . . . . .475.8 -1.0 655.4 302.9 Bunzl . . . . . . . . . . . . .778.0 -0.5 779.0 628.5 Borders & Souther . . .65.8 -1.3 93.0 45.8
Tsy 8.000 21 . . . .134.16 0.24 147.1 132.8 HHOLD GDS & HOME CONSTR.
BH Macro Ltd. GBP 1709.0 9.0 1800.0 1630.0 Paragon Group Of . .185.8 1.5 191.2 114.4 Chime Communicati .272.5 -4.5 281.8 158.0 Cairn Energy . . . . . . .419.1 11.1 493.2 329.3 Capita Group . . . . . . .684.5 12.0 826.0 635.5 BowLeven . . . . . . . . .329.0 -8.8 398.0 103.0
Tsy 4.000 22 . . . . .99.42 0.35 108.4 95.4 BH Macro Ltd. USD . . .16.6 0.0 17.1 15.8 Provident Financi . . .986.5 10.5 999.5 728.5 Barratt Developme . . .98.6 2.2 137.7 70.1 Creston . . . . . . . . . . . .89.5 1.5 105.0 78.5 EnQuest . . . . . . . . . . .141.5 0.3 150.6 89.3 Carillion . . . . . . . . . . .395.3 10.1 410.9 273.0 Caledon Resources .101.0 0.5 107.0 23.3
Tsy 1.875 22 . . . . .111.72 0.06 117.8 107.3 BlackRock World M .807.0 26.0 815.0 515.0 Rathbone Brothers .1245.0 5.0 1257.0 762.5 Bellway . . . . . . . . . . . .674.5 14.5 809.0 511.0 Daily Mail and Ge . . .568.0 -12.0 594.5 432.4 Essar Energy . . . . . .510.0 1.0 589.5 383.0 De La Rue . . . . . . . . .714.5 2.0 984.0 549.5 Cape . . . . . . . . . . . . . .437.5 -2.3 470.0 190.5
Tsy 2.500 24 . . . .276.46 0.15 286.9 254.0 BlueCrest AllBlue . . .170.0 1.0 174.5 157.2 Real Estate Credi . . . . .1.1 -0.0 2.5 0.9 Exillon Energy . . . . . .340.5 -11.5 418.1 163.0 Electrocomponents .272.3 -0.5 279.5 184.3 CareTech Holding . . .229.5 -1.5 440.0 229.0
Tsy 5.000 25 . . . .107.99 0.43 118.5 103.6 British Assets Tr . . . .138.5 2.9 140.5 105.0 RSM Tenon Group . . .54.0 0.0 66.3 38.0 Heritage Oil . . . . . . . .308.1 -2.1 581.0 296.8 Experian . . . . . . . . . . .803.5 7.0 819.0 572.0 Conygar Investmen .119.0 0.0 124.3 101.3
Tsy 1.250 27 . . . .105.26
Tsy 4.250 27 . . . . .98.43
0.09
0.39
111.2
108.8
100.4
94.8
British Empire Se . . .504.0 -2.0 512.0 404.1
Caledonia Investm .1794.0 28.0 1928.0 1514.0
S & U . . . . . . . . . . . . .632.5 12.5 643.8 482.5
Schroders . . . . . . . .1802.0 -19.0 1922.0 1116.0
MAIN CHANGES UK 350 JKX Oil & Gas . . . . . .290.0 2.0
Premier Oil . . . . . . . .1952.0 -4.0
329.3 223.2
2140.0 1026.0
Filtrona PLC . . . . . . . .302.4 3.7
G4S . . . . . . . . . . . . . . .268.9 0.3
303.0 178.3
283.5 237.7
Cove Energy . . . . . . .100.3 3.3
Daisy Group . . . . . . .102.5 1.5
112.8
108.5
23.5
84.5
Tsy 6.000 28 . . . .120.09 0.38 132.7 116.9 City of London In . . .289.4 2.9 296.0 233.7 Schroders (Non-Vo .1407.0 -20.0 1508.0 931.0 Royal Dutch Shell . .2129.5 -11.0 2267.5 1624.0 Hays . . . . . . . . . . . . . .125.5 0.7 133.6 88.4 Desire Petroleum . . . .33.3 -1.8 168.5 32.3
Tsy 4.125 30 . . . .264.22 0.20 274.4 242.0 Dexion Absolute L . .146.0 0.9 147.9 131.2 Tullett Prebon . . . . . .406.8 4.8 420.5 267.4
Risers % Fallers %
Royal Dutch Shell . .2124.5 -3.0 2251.0 1554.0 Homeserve . . . . . . . .462.0 10.7 487.5 329.0 EMIS Group . . . . . . . .465.0 -9.8 474.8 303.5
Tsy 4.750 30 . . . .103.63 0.48 115.0 100.1 Edinburgh Dragon . .229.7 2.0 262.1 182.1 Walker Crips Grou . . .49.0 0.0 50.5 45.0 Centamin Egypt Ltd .149.0 6.4 Ocado Group . . . . . . .255.0 -10.5 Salamander Energy .301.0 2.1 307.0 204.9 Howden Joinery Gr . .124.3 0.3 124.5 56.8 Encore Oil . . . . . . . . .120.0 -2.5 151.5 15.0
Tsy 4.250 32 . . . . .96.68 0.51 107.8 93.7 Edinburgh Inv Tru . . .428.8 -1.9 467.2 366.0 Gem Diamonds Ltd. .296.1 4.6 Future . . . . . . . . . . . . . .28.3 -4.2 Soco Internationa . . .341.2 -3.5 484.2 292.0 Intertek Group . . . . .1825.0 18.0 2000.0 1177.0 Faroe Petroleum . . . .182.3 -3.3 218.3 105.4
Tsy 4.250 36 . . . . .95.88 0.62 107.4 93.0 Electra Private E . . .1653.0 1.0 1719.0 1177.0 FIXED LINE TELECOMS Michael Page Inte . . .539.5 -3.0 565.5 346.4 Gulfsands Petrole . . .329.0 0.5 401.5 240.0
Tsy 4.750 38 . . . .103.90 0.65 116.5 101.1 JPMorgan Indian In . .410.2 4.1 Real Estate Credit . . . . .1.1 -3.6
F&C Inv Trust . . . . . .316.2 2.9 316.3 251.4 BT Group . . . . . . . . . .185.3 -0.4 190.8 109.9 OIL EQUIPMENT & SERVICES Mitie Group . . . . . . . .212.3 -3.2 241.1 188.7 GW Pharmaceutical .117.8 1.0 141.0 83.0
Tsy 4.500 42 . . . .100.05 0.72 112.8 97.5 SDL . . . . . . . . . . . . . . .656.5 4.0 Exillon Energy . . . . . .340.5 -3.3
Fidelity China Sp . . . .107.3 -0.2 128.7 92.3 Cable & Wireless . . . .46.2 -1.2 63.7 44.4 Fidessa Group . . . . .1700.0 4.0 Next . . . . . . . . . . . . .2000.0 -3.1 Tullow Oil . . . . . . . . .1452.0 53.0 1456.0 991.5 Premier Farnell . . . . .303.0 1.9 306.5 181.2 Hamworthy . . . . . . . .481.8 -8.0 502.0 256.8
Fidelity European . .1146.0 6.0 1158.0 916.0 Cable & Wireless . . . .76.9 2.1 100.0 60.5 Amec . . . . . . . . . . . .1197.0 3.0 1251.0 754.5 Regus . . . . . . . . . . . . .105.2 -0.5 120.0 66.1 Hargreaves Servic . .902.0 8.5 912.5 556.5
AEROSPACE & DEFENCE Fidelity Special . . . . .592.0 4.5 593.0 503.0 COLT Group SA . . . .153.0 0.0 154.2 109.0 Tullow Oil . . . . . . . . .1452.0 3.8 F&C Asset Manageme 86.5 -2.9 Hunting . . . . . . . . . . .779.0 9.0 806.0 439.4 Rentokil Initial . . . . . .100.4 -1.5 138.5 87.7 Healthcare Locums . .112.5 0.0 0.0 0.0
BAE Systems . . . . . .356.5 6.4 388.8 294.7 Herald Inv Trust . . . . .528.0 11.0 528.0 330.5 TalkTalk Telecom . . .149.7 1.2 168.3 108.5 AG Barr . . . . . . . . . .1126.0 3.8 Imagination Techno .349.5 -2.7 John Wood Group . .572.5 18.0 582.5 293.1 RPS Group . . . . . . . . .209.5 0.0 242.0 169.8 Immunodiagnostic . .890.0 -10.0 975.0 575.0
Chemring Group . . .3609.0 67.0 3663.0 2598.0 HSBC Infrastructu . . .116.9 0.3 121.2 112.0 Lonmin . . . . . . . . . . .1845.0 3.8 Bloomsbury Publish .111.0 -2.6 Lamprell . . . . . . . . . . .300.4 9.4 390.0 195.3 Serco Group . . . . . . .551.0 -6.0 651.0 501.5 James Halstead . . . . .429.0 17.0 443.5 280.5
FOOD & DRUG RETAILERS
Cobham . . . . . . . . . . .222.8 6.5 275.9 192.3 Impax Environment .122.0 3.1 130.5 106.5 Evolution Group . . . . .70.0 3.7 Domino's Pizza UK .523.5 -2.6 Petrofac Ltd. . . . . . .1537.0 1.0 1685.0 913.1 Shanks Group . . . . . .116.4 -2.0 126.7 92.0 Kalahari Minerals . . .235.0 -1.0 268.0 142.0
Meggitt . . . . . . . . . . . .367.0 9.3 380.9 257.0 JPMorgan American .902.0 11.5 909.0 673.0 Booker Group . . . . . . .55.6 0.4 60.6 38.6 Berkeley Group Hol .980.0 3.5 Supergroup . . . . . . .1773.0 -2.6 SIG . . . . . . . . . . . . . . .137.0 -2.0 153.2 90.7 London Mining . . . . .418.8 2.5 420.0 194.0
QinetiQ Group . . . . . .132.5 0.2 142.0 96.7 JPMorgan Asian In . .222.1 1.9 250.8 175.0 Greggs . . . . . . . . . . . .494.2 7.4 501.5 404.6 PERSONAL GOODS SThree . . . . . . . . . . . .410.4 2.4 413.9 231.1 Lonrho . . . . . . . . . . . . .18.0 0.3 19.0 9.4
Rolls-Royce Group . .657.5 7.5 665.0 506.5 JPMorgan Emerging .564.0 8.5 639.0 467.0 Morrison (Wm) Sup .276.7 -1.3 306.3 257.6 Price Chg High Low Price Chg High Low Burberry Group . . . .1176.0 -11.0 1200.0 602.0 Travis Perkins . . . . .1044.0 -5.0 1127.0 664.5 M. P. Evans Group . .456.5 13.5 500.5 317.5
Senior . . . . . . . . . . . . .158.2 1.7 159.0 78.5 JPMorgan European .875.0 10.5 885.0 606.0 Ocado Group . . . . . . .255.0 -30.0 285.0 123.5 PZ Cussons . . . . . . . .353.0 0.5 409.0 260.1 Wolseley . . . . . . . . .2260.0 -1.0 2286.0 1223.0 Majestic Wine . . . . . .413.5 1.5 430.0 235.5
Ultra Electronics . . .1828.0 22.0 1895.0 1283.0 JPMorgan Indian I . . .410.2 16.1 502.0 362.0 Sainsbury (J) . . . . . . .388.5 0.8 395.0 312.9 Berkeley Group Ho . .980.0 33.5 981.0 742.0 Euromoney Institu . .735.5 3.0 737.5 462.5 Supergroup . . . . . . .1773.0 -47.0 1828.0 535.0 May Gurney Integr . .258.0 2.5 264.0 177.0
JPMorgan Russian .691.5 16.0 755.0 490.0 Tesco . . . . . . . . . . . . .395.1 0.3 454.4 377.5 Bovis Homes Group .459.0 11.7 460.0 326.6 Future . . . . . . . . . . . . . .28.3 -1.3 29.5 15.8 TECHNOLOGY HARDW. & EQUIP. Monitise . . . . . . . . . . . .25.8 1.5 26.0 14.3
ALTERNATIVE ENERGY Law Debenture Cor . .360.8 3.4 362.9 267.8 PHARMACEUTICALS & BIOTECH ARM Holdings . . . . . .611.0 16.0 611.0 194.9 Mulberry Group . . . .1300.0 0.0 1388.0 162.8
Mcbride . . . . . . . . . . .138.6 2.7 247.4 114.0 Haynes Publishing . .231.5 0.0 262.5 202.5
Hansen Transmissi . . .52.4 1.5 108.0 40.0 Mercantile Inv Tr . . .1124.0 9.0 1133.0 828.0 FOOD PRODUCERS Huntsworth . . . . . . . . .80.0 -1.0 87.5 60.8 AstraZeneca . . . . . .3020.5 -6.0 3385.0 2772.0 CSR . . . . . . . . . . . . . .442.1 0.5 505.0 280.9 Nanoco Group . . . . . . .87.5 -0.3 115.8 76.5
Persimmon . . . . . . . .444.8 10.2 507.5 336.5
Merchants Trust . . . .411.0 4.8 425.0 318.0 Associated Britis . .1045.0 1.0 1182.0 899.5 Reckitt Benckiser . .3290.0 19.0 3655.0 3037.0 Informa . . . . . . . . . . . .457.9 1.4 459.4 319.8 BTG . . . . . . . . . . . . . .219.0 0.4 263.0 154.2 Imagination Techn . .349.5 -9.5 441.7 215.1 Nautical Petroleu . . .450.0 -3.3 547.0 45.0
AUTOMOBILES & PARTS Monks Inv Trust . . . .352.8 4.7 363.0 273.5 Cranswick . . . . . . . . .836.0 10.5 907.5 737.5 Genus . . . . . . . . . . . . .880.0 2.0 893.5 677.5 Pace . . . . . . . . . . . . . .217.9 4.5 218.1 148.6 Nichols . . . . . . . . . . . .463.5 1.0 495.0 332.5
Redrow . . . . . . . . . . . .131.4 1.1 151.9 97.5 ITE Group . . . . . . . . . .244.3 -0.7 252.2 126.5
GKN . . . . . . . . . . . . . .212.4 0.2 237.1 102.0 Murray Income Tru . .641.5 9.5 649.0 513.0 Dairy Crest Group . . .382.4 2.4 424.9 329.0 Taylor Wimpey . . . . . . .36.8 0.6 44.0 22.3 ITV . . . . . . . . . . . . . . . . .86.5 1.5 87.6 48.3 GlaxoSmithKline . . .1176.0 5.5 1318.5 1095.0 Spirent Communica .154.2 2.5 160.3 102.8 Numis Corporation . .123.8 -0.3 158.5 109.0
Murray Internatio . . .914.0 -1.0 966.0 747.5 Devro . . . . . . . . . . . . .228.0 0.0 275.0 146.3 Johnston Press . . . . . .10.5 -0.3 33.5 9.1 Hikma Pharmaceuti .842.5 1.5 900.0 541.5 Patagonia Gold . . . . . .50.3 1.5 59.3 12.5
BANKS Perpetual Income . . .253.4 2.7 262.0 203.0 Premier Foods . . . . . . .22.0 -0.2 35.6 16.0 INDUSTRIAL ENGINEERING Shire Plc . . . . . . . . . .1695.0 24.0 1703.0 1255.0 TOBACCO Pursuit Dynamics . . .401.0 13.3 700.0 143.0
Mecom Group . . . . . .277.5 -6.0 288.0 149.8
Barclays . . . . . . . . . . .311.1 -2.2 383.2 255.4 Polar Cap Technol . .391.2 0.2 391.2 239.5 Tate & Lyle . . . . . . . . .591.5 11.0 594.5 409.1 Bodycote . . . . . . . . . .299.2 -5.0 308.2 175.1 Moneysupermarket. . .91.5 1.1 92.0 61.0 British American . .2423.5 22.5 2521.0 1959.0 Rockhopper Explor .278.0 -58.0 510.0 37.0
HSBC Holdings . . . . .714.0 -1.0 723.0 596.2 RIT Capital Partn . . .1315.0 23.0 1322.0 980.0 Unilever . . . . . . . . . .1807.0 -7.0 1997.0 1688.0 Pearson . . . . . . . . . .1064.0 4.0 1066.0 864.0 REAL ESTATE INVEST. & SERV. Imperial Tobacco . .1955.0 -5.0 2154.0 1753.0 RWS Holdings . . . . . .329.8 -4.3 370.0 239.0
Charter Internati . . . .776.0 6.0 853.5 567.0
Lloyds Banking Gr . . .66.8 1.0 77.6 46.6 Schroder Asia Pac . .220.1 -1.9 233.6 171.0 Fenner . . . . . . . . . . . .339.0 -0.2 386.7 183.3 Reed Elsevier . . . . . .590.5 7.0 592.0 460.6 Capital & Countie . . .146.0 0.4 156.9 100.0 Songbird Estates . . .137.0 -0.5 180.2 133.8
Scottish Inv Trus . . . .506.0 5.0 516.5 401.5 FORESTRY & PAPER Daejan Holdings . . .2795.0 13.0 2870.0 2157.0 TRAVEL & LEISURE Sterling Energy . . . . . .73.8 1.3 166.0 51.3
Royal Bank of Sco . . .44.0 -0.3 58.1 31.3 IMI . . . . . . . . . . . . . . . .912.0 10.5 953.0 546.5 Rightmove . . . . . . . . .905.0 -1.5 910.0 577.0
Standard Chartere .1669.5 27.5 1950.0 1361.8 Scottish Mortgage . .728.5 14.5 728.5 490.6 Mondi . . . . . . . . . . . . .528.0 2.0 557.5 339.6 Melrose . . . . . . . . . . . .311.2 0.6 329.0 165.5 STV Group . . . . . . . . .122.5 2.5 131.8 47.0 F&C Commercial Pr .102.0 0.8 107.0 88.0 Avis Europe . . . . . . . .229.0 5.5 284.7 190.0 Valiant Petroleum . . .615.0 15.0 761.5 504.0
SVG Capital . . . . . . . .247.4 3.4 250.0 125.2 Rotork . . . . . . . . . . .1725.0 37.0 1895.0 1215.0 Tarsus Group . . . . . .137.5 0.0 145.0 105.0 Grainger . . . . . . . . . . .103.6 1.9 145.0 86.3 Betfair Group . . . . . . .919.5 8.5 1550.0 882.0 Vatukoula Gold Mi . . .177.3 -2.0 227.0 84.0
BEVERAGES Temple Bar Inv Tr . . .898.0 10.0 913.5 717.0 GAS, WATER & MULTIUTILITIES Helical Bar . . . . . . . . .273.5 3.5 358.8 262.0 Carnival . . . . . . . . . .2983.0 34.0 3153.0 2037.0 Young & Co's Brew . .605.5 -1.5 670.0 485.0
Spirax-Sarco Engi . .1841.0 -14.0 2025.0 1241.0 Trinity Mirror . . . . . . . .87.8 1.3 170.1 64.5
AG Barr . . . . . . . . . .1126.0 41.0 1304.0 791.5 Templeton Emergin .610.0 3.0 689.5 486.5 Centrica . . . . . . . . . . .344.6 10.8 346.9 264.5 Weir Group . . . . . . .1695.0 34.0 1861.0 735.5 United Business M . .724.5 15.0 726.5 412.3 London & Stamford .127.5 0.7 133.5 110.3 Compass Group . . . .553.5 3.0 594.0 450.5
Britvic . . . . . . . . . . . . .440.5 0.5 518.0 411.6 TR Property Inv T . . .167.0 0.4 171.2 132.3 International Pow . . .339.4 11.2 448.6 284.5 Ferrexpo . . . . . . . . . . .433.1 7.7 447.9 210.2 UTV Media . . . . . . . . .128.3 -1.5 151.0 95.0 Savills . . . . . . . . . . . . .366.3 -0.7 399.0 273.1 Domino's Pizza UK . .523.5 -14.0 586.0 324.7
Diageo . . . . . . . . . . .1206.0 11.0 1258.0 1018.0 TR Property Inv T . . . .82.0 1.6 82.0 59.2 National Grid . . . . . . .572.5 7.5 596.2 484.2 Talvivaara Mining . . .609.0 4.0 622.0 342.4 Wilmington Group . .174.3 -0.3 183.0 129.0 St. Modwen Proper . .170.0 0.0 201.0 135.4 easyJet . . . . . . . . . . . .385.0 4.5 496.5 348.6
SABMiller . . . . . . . . .2144.0 58.5 2306.0 1678.0 Witan Inv Trust . . . . .516.5 3.0 522.0 409.9 Northumbrian Wate .318.0 3.9 361.5 252.8 WPP . . . . . . . . . . . . . .832.0 8.0 837.5 592.0 UK Commercial Pro . .78.4 0.6 85.0 72.8 Enterprise Inns . . . . .106.9 -0.1 139.3 84.4
Pennon Group . . . . . .626.0 7.5 650.0 482.9 INDUSTRIAL TRANSPORTATION Unite Group . . . . . . . .208.4 4.7 290.6 163.0 FirstGroup . . . . . . . . .370.3 -0.9 412.6 336.0
FINANCIAL SERVICES Yell Group . . . . . . . . . .10.5 0.0 59.0 10.0
CHEMICALS Severn Trent . . . . . .1441.0 1.0 1499.0 1086.0 Go-Ahead Group . . .1270.0 -14.0 1490.0 1042.0
BBA Aviation . . . . . . .240.8 2.8 241.8 160.3 REAL ESTATE INVEST. TRUSTS
AZ Electronic Mat . . .313.6 -3.8 318.0 249.0 3i Group . . . . . . . . . . .315.6 3.0 340.0 250.0 United Utilities . . . . .573.0 8.0 628.5 507.0 MINING Greene King . . . . . . .476.5 -8.9 491.4 376.2
Forth Ports . . . . . . . .1327.0 2.0 1433.0 1025.0
Croda Internation . .1473.0 6.0 1625.0 797.0 3i Infrastructure . . . . .116.7 0.6 125.2 103.6
GENERAL INDUSTRIALS Stobart Group Ltd . . .154.9 0.8 163.6 125.6 African Barrick G . . .516.0 -1.0 670.0 501.5 Big Yellow Group . . .311.0 -6.3 353.3 284.4 InterContinental . . .1374.0 -15.0 1405.0 893.0 http://corporate.webfg.com
Elementis . . . . . . . . . .131.8 3.8 143.0 50.5 Aberdeen Asset Ma .215.6 -0.3 229.5 112.8 Anglo American . . .3421.5 113.0 3427.0 2254.0 British Land Co . . . . .542.5 2.5 542.5 418.3 International Con . . .249.0 -2.0 305.0 184.2 mailto:
Ashmore Group . . . .360.0 -1.6 383.7 228.6 Cookson Group . . . . .680.0 9.5 694.5 367.4 NON LIFE INSURANCE Capital Shopping . . .378.9 3.9 424.8 301.0 JD Wetherspoon . . . .456.8 2.4 548.5 386.5
Johnson Matthey . .1996.0 12.0 2100.0 1460.0 Antofagasta . . . . . . .1459.0 29.0 1634.0 761.0
Victrex . . . . . . . . . . .1339.0 -15.0 1522.0 811.0 Berkeley Technolo . . . .0.0 0.0 0.0 0.0 DS Smith . . . . . . . . . .213.8 -2.9 226.0 108.0 Admiral Group . . . . .1704.0 0.0 1733.0 1162.0 Aquarius Platinum . .416.4 13.4 458.0 227.1 Derwent London . . .1551.0 14.0 1605.0 1208.0 Ladbrokes . . . . . . . . .139.3 2.0 162.7 122.7 globaltechsales@webfg.com

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Price Chg High Low Price Chg High Low
AIR LIQUIDE........................................93.91 0.01 99.15 72.54 3M ........................................................91.80 1.34 91.95 67.98
ALLIANZ ............................................106.50 0.60 107.35 75.82 ABBOTT LABS ...................................45.56 0.07 55.55 44.59
ALSTOM ..............................................42.53 0.23 50.73 30.78 ALCOA ................................................17.37 0.25 17.48 9.81

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ANHEUS-BUSCH INBEV ....................41.26 0.36 46.33 34.99 AMAZON.COM..................................189.25 3.04 191.60 105.80
ARCELORMITTAL...............................27.98 0.00 33.68 20.26 AMERICAN EXPRESS........................46.75 0.18 49.19 37.00
AXA......................................................15.65 -0.11 17.60 10.88 AMGEN INC.........................................53.74 -0.53 61.26 50.32

10:30 AM EMAIL
BANCO SANTANDER...........................8.84 0.09 10.57 7.00 APPLE ...............................................356.85 2.31 360.00 194.06
BASF SE..............................................58.04 -0.49 61.88 39.72 AT&T....................................................28.47 0.23 30.10 23.78
BAYER .................................................55.58 -0.12 59.17 43.27 BANK OF AMERICA ...........................14.77 0.28 19.86 10.91
BBVA......................................................8.94 0.11 10.95 6.87 BERKSHIRE HATAW B.......................84.91 0.46 85.86 68.48
BMW ....................................................63.14 1.43 65.49 28.28 BOEING CO.........................................72.14 -0.52 76.00 58.93
BNP PARIBAS.....................................56.72 0.26 59.34 40.81 BRISTOL MYERS SQUI......................25.22 -0.32 28.00 22.24
CARREFOUR ......................................35.38
CREDIT AGRICOLE ............................11.57
0.03
-0.04
41.28
13.78
30.85
7.87
Each day we’ll cover the morning’s breaking news, CATERPILLAR..................................103.54
CHEVRON ...........................................96.45
2.94
-0.25
103.55
98.23
52.45
66.83
CRH PLC .............................................16.69
DAIMLER .............................................56.51
0.20
1.03
22.00
59.09
11.51
29.93
give you current market analysis and CISCO SYSTEMS................................18.70
COCA-COLA .......................................63.57
-0.22
0.03
27.74
65.88
18.61
49.47
DANONE..............................................43.59
DEUTSCHE BANK ..............................46.17
-0.52
0.16
48.50
55.25
39.35
35.93 the most up-to-date financial headlines. COLGATE PALMOLIVE ......................78.92
CONOCOPHILLIPS.............................71.58
1.19
1.50
86.15
72.65
73.12
47.15
DEUTSCHE BOERSE .........................61.62 0.52 62.48 45.95 DU PONT(EI) DE NMR........................54.58 0.25 54.75 31.88
DEUTSCHE TELEKOM .........................9.90 -0.05 10.64 8.51 EMC CORP..........................................27.04 -0.15 27.23 16.63
E.ON.....................................................24.78
ENEL......................................................4.32
0.00
0.01
28.93
4.35
20.86
3.42 Sign up now to ensure you EXXON MOBIL....................................82.82
FORD MOTOR.....................................16.38
-0.38
0.43
84.00
18.97
55.94
9.75
ENI .......................................................18.26
FRANCE TELECOM............................16.24
0.00
-0.04
18.37
17.92
14.30
14.01 receive our free email. GENERAL ELECTRIC.........................21.33
GOLDMAN SACHS GRP ..................166.66
0.06
1.32
21.44
186.41
13.75
129.50
GDF SUEZ ...........................................29.72 0.19 30.05 22.64 GOOGLE A........................................624.50 8.06 642.96 433.63
GENERALI ASS...................................16.90 0.01 18.25 13.31 HEWLETT PACKARD.........................48.64 0.10 54.75 37.32
IBERDROLA ..........................................6.34
ING GROEP CVA...................................8.93
INTESA SANPAOLO .............................2.45
0.01
-0.11
0.02
6.44
9.20
2.99
4.38
5.34
1.88
Visit: www.CityAM.com/newsletter In association with HOME DEPOT.....................................37.48
IBM.....................................................163.85
INTEL CORP .......................................21.76
0.17
-0.24
-0.04
38.12
166.25
24.37
26.62
116.00
17.60
KON.PHILIPS ELECTR .......................23.44 0.04 27.01 20.58 J.P.MORGAN CHASE .........................46.57 1.04 48.20 35.16
L'OREAL..............................................85.72 -3.78 90.00 70.90 JOHNSON & JOHNSON.....................60.70 -0.23 66.20 56.86
LVMH..................................................119.40 0.55 129.05 75.92 WORLD INDICES KRAFT FOODS A................................30.66 -0.45 32.67 27.49
MUNICH RE .......................................122.05 -0.50 123.55 98.38 MC DONALD'S CORP ........................76.14 0.38 80.94 62.54
Price Chg %chg Price Chg %chg Price Chg %chg Price Chg %chg
NOKIA....................................................7.00 -1.16 11.82 6.59 MERCK AND CO. NEW ......................33.07 0.03 39.04 30.70
FTSE 100 . . . . . . . . . . . . . . 6062.90 42.89 -0.53
0.71 S&P 500 . . . . . . . . . . . . . . . 1329.15 7.28 0.55 CAC 40 . . . . . . . . . . . . . . . . 4101.31 6.17 0.15 BOVESPA SAO PAOLO . . 65755.66 1177.83 1.82
REPSOL YPF.......................................23.48 0.03 23.88 15.31 FTSE 250 INDEX. . . . . . . . 11797.77 76.17 -0.64
0.65 NASDAQ COMPOSITE . . . 2809.44 18.99 0.68 SHANGHAI SE INDEX . . . . 2827.33 9.17 0.33 ISEQ OVERALL INDEX . . . 2972.07 34.95 1.19 MICROSOFT........................................27.25 -0.25 31.58 22.73
RWE .....................................................53.47 -0.03 68.34 47.65 FTSE UK ALL SHARE . . . . 3143.89 21.58 -0.55
0.69 FTSEUROFIRST 300 . . . . . 1174.13 4.82 0.41 HANG SENG. . . . . . . . . . . 22828.92 120.30 0.53 STI . . . . . . . . . . . . . . . . . . . . 3077.27 -26.12 -0.84 OCCID. PETROLEUM.........................99.74 0.81 101.00 72.13
SAINT-GOBAIN ...................................43.32 0.82 43.87 27.81 FTSE AIM ALL SH . . . . . . . . 955.45 0.75 0.08 NIKKEI 225 AVERAGE . . . 10605.65 -12.18 -0.11 S&P/ASX 20 INDEX . . . . . . 2935.70 -22.30 -0.75 IGBM . . . . . . . . . . . . . . . . . . 1105.11 1.94 0.18 ORACLE CORP...................................33.47 0.21 33.59 21.24
SANOFI-AVENTIS ...............................49.65 -0.74 57.45 44.01 DOW JONES INDUS 30 . . 12273.26 43.97 0.36 DAX 30 PERFORMANCE. . 7371.20 30.92 0.42 ASX ALL ORDINARIES . . . 4970.60 -31.10 -0.62 SWISS MARKET INDEX. . . 6665.22 53.16 0.80 PEPSICO .............................................63.87 0.51 68.11 59.51
SAP ......................................................44.37 0.67 44.67 30.91 PFIZER ................................................18.81 -0.22 19.39 14.00
SCHNEIDER ELECTRIC ...................114.85
SIEMENS .............................................94.68
0.90
0.98
120.00
96.00
72.00
61.72
COMMODITIES CREDIT & RATES PHILIP MORRIS INTL .........................59.62
PROCTER AND GAMBLE ..................64.73
0.45
0.15
60.87
66.95
2.00
39.37
SOCIETE GENERALE.........................48.40 0.83 49.43 29.71 LON GD ONCE FIX AM...........1359.00 0.25 TIN CASH.............................31200.00 -290.00 BoE IR Overnight ............................0.500 0.00 Euro Base Rate ...............................1.000 0.00 QUALCOMM INC ................................57.60 0.60 57.65 31.63
TELECOM ITALIA..................................1.05 0.00 1.15 0.88 SILVER LDN FIX AM ..................30.05 -0.17 ZINC CASH ............................2401.00 -52.50 BoE IR 7 days .................................0.500 0.00 Finance house base rate ................1.000 0.00 SCHLUMBERGER ..............................90.37 -0.26 91.61 51.67
TELEFONICA ......................................18.33 -0.08 19.69 14.67 MAPLE LEAF 1 OZ ....................65.00 -5.50 BoE IR 1 month ..............................0.500 0.00 US Fed funds...................................0.250 0.00 TRAVELERS CIES ..............................58.99 0.53 59.12 47.69
BRENT SPOT INDEX................101.69 0.76 BoE IR 3 months ............................0.500 0.00 US long bond yield .........................4.020 0.00
TOTAL..................................................43.45 -0.03 44.63 35.66 LON PLATINUM AM................1830.00 -4.00 UNITED TECHNOLOGIE ....................85.20 0.45 85.46 62.88
SOYA .....................................1433.00 0.00 BoE IR 6 months ............................0.500 0.00 European repo rate .........................0.899 -0.09
UNIBAIL-RODAMCO SE...................144.45 0.85 155.95 105.19 LON PALLADIUM AM ...............820.00 2.00 UNITEDHEALTH GROUP ...................42.38 -0.05 44.09 27.13
COCOA ..................................3397.00 0.00 LIBOR Euro - overnight ..................0.872 -0.09 Euro Euribor ....................................0.942 -0.02
UNICREDIT............................................1.86 0.01 2.30 1.46 ALUMINIUM CASH .................2503.00 -34.00 LIBOR Euro - 12 months ................1.643 0.01 The vix index ...................................15.80 -0.29 VERIZON COMMS ..............................36.39 -0.03 37.70 24.77
UNILEVER CVA...................................21.73 -0.16 24.11 20.68 COPPER CASH ......................9875.00 -124.00 COFFEE...................................257.85 0.00 WAL-MART STORES..........................55.69 0.10 57.90 47.77
LIBOR USD - overnight...................0.234 0.00 The baltic dry index ........................1.136 0.04
VINCI....................................................43.83 -0.10 44.98 33.01 LEAD CASH ...........................2505.00 69.00 KRUG.....................................1414.60 4.10 LIBOR USD - 12 months .................0.796 0.00 Markit iBoxx...................................208.43 0.30 WALT DISNEY CO ..............................43.41 0.10 44.05 29.03
VIVENDI ...............................................20.77 0.18 22.07 16.18 NICKEL CASH ......................28005.00 -250.00 WHEAT ....................................210.00 -1.00 Halifax mortgage rate .....................3.500 0.00 Markit iTraxx ....................................97.25 1.15 WELLS FARGO & CO.........................33.76 0.76 34.25 23.02
CITYA.M. 14 FEBRUARY 2010 Wealth Management | Spread Betting 25

ADVERTISEMENT FEATURE

Think again about “no dealing desk”

GARY TILKIN
PRESIDENT AND CEO, GFT

R
ecently, there has been a lot of dis-
cussion in the business media
about the “no dealing desk” model
in retail forex.
Let’s take a closer look at what a deal-
ing desk is, how “no dealing desk” bro-
kers stand up to dealers and market
makers, and what you should really be
looking for in your broker/dealer.

LET’S GET SOMETHING STRAIGHT. THERE

IS NO SUCH THING AS “NO DEALING DESK”
IN AN OTC FOREX TRANSACTION – THERE
MUST ALWAYS BE A DEALER (WITH A
DEALING DESK) ON ALL FOREIGN
EXCHANGE TRANSACTIONS.
The claim of having “no dealing desk” is
ridiculous. Plain and simple. Spot forex
is traded over-the-counter, not on a cen-
tralised exchange, so the trade cannot
occur without a dealer (or counterparty)
being involved in some capacity. “No
dealing desk” brokers are middle men –
they get your order and pass it on to an
actual dealing desk to be executed. They,
however, are contractually your dealer
or counterparty to the trade; they then
face the other dealer with a correspon-
ding trade.
In reality, the “no dealing desk” bro-
kers forward their trading orders to the
dealing desks of others, typically a bank
or other financial institution that makes
markets in spot FX. So whether you
know it or not, a dealing desk is always
involved when you place a trade. A more
accurate description of this model
would be to call it a pass-through deal-
ing desk. The pass-through dealing desk
“passes” the customer’s order to another
dealing desk. If this sounds like an extra tions. Sounds simple in theory, but the Not evey jurisdiction are problems with the trade. The broker 3. Does your broker operate from a reliable
middle man, it is. The elimination of the reality is quite a bit more complex and is as reliable literally “passes the buck” of responsibil- jurisdiction?
“middle men” is the main reason why can vary customer by customer or mar- ity, making any adjustments in favour of Is your broker/dealer operating in a
over-the-counter trading has grown so ket by market. These general ideas are Picture: the customer highly unlikely. In a deal- banana republic, or in areas with lax or
much over the last 15 years – which manipulated and customised by dealers Micha Theiner ing desk model, the customer can no regulation? If so, you may have no
makes it ironic that some firms are now (also called market makers) across the /City A.M. always call the dealer directly to discuss protection, regardless of whether they
trying to introduce middle men back industry, from major money centre any legitimate problems in execution. claim to have a dealing desk or no deal-
into the process. It’s also important to banks, to GFT. All with one goal in mind ing desk.
note that a pass-through dealing desk – to minimise risk to their firm and WHAT SHOULD YOU LOOK FOR IN A FOREX
puts all of the execution risk on the trad- make money. Dealers and consumers BROKER/DEALER? 4. Does your broker provide a steady price
er, but provides none of the benefits of can both profit at the same time. Other than spreads, what else should feed?
being able to speak directly to a dealing Ironically, most “no dealing desk” bro- you be looking for in a forex dealer? In currency trading, execution and serv-
desk. kers started out with direct dealing Here are some other things to consider: ice are of upmost importance. It doesn’t
desks, but some have reverted back to matter if your broker claims to offer a
DON’T FALL FOR THE MARKETING SPIN! being brokers instead of dealers, with a 1. Does your broker often widen spreads dur- half-pip wide spread – it will be of little
You might have heard in current adver- network of other, successful dealing ing volatile market conditions? use if those prices are not executable or
tising that when the customer makes desks to introduce their customers’ Pass-through dealing desk brokers and stable. The Internet is replete with
money, the dealer loses – that is, the order flow to. However, they still have to even some direct dealing desk brokers reports of brokers whose platforms are
dealer is trading against the customer. If make money somehow – and that is on will often widen their spreads during unstable and whose prices often lag the
that is the case, why does it matter if the the backs of their customers. news announcements, resulting in market. Simply search “lagging price” to
dealing desk is with the actual trading Instead of getting their profits as a spreads that could expand to 25 pips or see what comes up.
company that holds your account or dealer or market maker would, they more, for minutes at a time. For traders
another financial institution? This kind have to resort to other ways to find prof- who use tight stops, this “spread widen- The retail forex market has made
of marketing can be really misleading its. These may include increasing the ing” could prove very costly, triggering tremendous progress over the past
because in today’s regulatory environ- spread they offer customers as well as unnecessary stops outs and creating decade, allowing thousands of investors
ment, the concern that a dealer can only taking “payouts/rebates” from the deal- missed opportunities. and traders across the world to benefit
make money when their customers lose ing desks they use to execute customer from this unique market. However,
(and therefore, is actively trading against orders – possibly in a way not favourable 2. Does your broker have a clean regulatory when selecting a trading company, it is
customers), is not reality. to the customer. Rebates mean wider record? important to ask questions rather than
Dealing desks, whether they are with spreads from the dealer/market maker In the UK the FSA and in the US the NFA accept its claims at face value. A smart
a large money centre bank, or the trad- which could mean a worse price for the provide a full public record of any trader does research before making a
ing desks of companies like GFT, have customer. enforcement actions against the broker final choice.
one goal – make money for their firm. In or its key personnel. To look up the vio-
retail forex, that money can come from DEALING DESKS AND MARKET MAKERS lation records of any licensed broker
a variety of sources. Dealing desks can CAN BE CONTACTED DIRECTLY TO DISCUSS simply go to:
make money by matching one customer PROBLEMS IN EXECUTION. www.fsa.gov.uk/register/home.do
order against another, sending customer Since the pass-through dealing desk is or:
orders or part of customer orders to merely acting as a middle man in the www.nfa.futures.org/NFA-investor-infor-
other liquidity providers in the broader trade and routes the order to some mation/index.HTML.
market, and also holding proprietary financial institution, the customer has Generally, the better the record, the bet-
positions based on their customer posi- almost no recourse in cases where there ter the broker.
 Lifestyle
26
| Travel
Stay in style
in the Land of
the Rising Sun
David Crow discovers the cool urban
hotels transforming Japanese hospitality
T
RADITIONALLY, visitors to
Japan have had two choices.
Stay in a Western chain hotel
like a Hilton or opt for a
Japanese establishment. The first
option is safe but dull. There is some-
thing quite galling about returning
to a slice of America or Europe when
you’ve spent the day soaking up
Eastern culture.
Nor is going for a Japanese chain,
or one of the countless boutique
hotels, a particularly easy experience.
It is tricky to book online, with many
of the websites written in Japanese
only, while the rooms are, for the
most part, much smaller than you
might expect.
Peninsula, Tokyo (left and below)
ARELY three years old, the
B Peninsula has already estab-
lished itself as one of
the great hotels of
Tokyo. In a city known
for its gaudy neon,
this hotel is an exer-
cise in how ele-
gance need not be
understated and it
starts as soon as
you walk through
the door (or
before that even, if
one of the hotel’s
vintage Rolls Royce
cars happens to be
waiting outside).
The lobby is a vast cir-
cular room, decked in
Japanese wood with a magnificent
chandelier consisting of over a thou-
sand LEDs hanging in the centre.
Afternoon tea is an unexpectedly
popular activity in Japan and the
Peninsula’s lobby might be the best
CITYA.M. 14 FEBRUARY 2011
Then there are the little things:
Japanese hotel rooms are fitted with
the kinds of comforts a local might
expect – electric toilet seats and tradi-
tional tea making facilities – but if
you wanted to make a cup of coffee in
your room, you could forget it.
In recent years, however, things
have changed. The best Western chains
(like Hyatt and Peninsula) are now
designed with Japanese style in mind,
while some high-end hoteliers in
Japan have begun catering for Western
travellers.
Here we’ve picked five hotels from
Japan’s most visited cities – Tokyo,
Kyoto and Osaka – that offer, as cliché
would have it, the best of both worlds.
place in the city to enjoy it; the cur-
rent menu takes it’s inspiration
from Jo Malone fragrances.
Given that space is at
a premium in Tokyo,
it’s impressive to
find the very cen-
tre of the hotel
given over to a
stunning art
installation.
The Void is a
series of silvery,
fibre-optic
sculptures sus-
pended inside a
70 metre “black
hole”, visible from
every floor of the hotel.
Even more impressive,
though, are the views. Situated
opposite the Imperial Palace, the
main residence of the Emperor of
Japan, the hotel provides beauty and
heritage at every turn.
www.peninsula.com/tokyo, 03-6270-2888.
CITYA.M. 14 FEBRUARY 2011
Mistui Garden Hotel Ginza Premier, Tokyo
HERE is no doubt about it,
T the Mitsui Garden Hotel
Ginza Premier in Tokyo is
Japanese through and
through. Like many Tokyo hotels, it
is housed in the upper section of a
soaring tower block – the entrance
is accessed by an unremarkable ele-
vator that’s shared with a photo-
copying firm. Once you arrive,
however, you quickly realise there
are advantages to having a lobby
suspended 16 storeys in mid-air
rather than the ground floor.
The near-panoramic views of the
Tokyo skyline – including the
famous Tokyo Tower – and the
twisting nexus of futuristic roads,
is breathtaking; the Piero Lissoni-
designed interior almost pales in
comparison, but not quite.
The rooms aren’t exactly tiny,
although they’re small by Western
standards, and are jam-packed with
technical wizardry, luxury fabrics
and glossy surfaces. Located on the
edge of Japan’s fashionable Ginza
district, the hotel is somewhat off
the beaten track, although it does
Dojima Hotel, Osaka
SAKA is often described as
O an industrial city, meaning
beauty can be in short sup-
ply. It makes you grateful
for the charms of Dojima, a chic
boutique hotel in a sea of interna-
tional chains.
The interior rarely strays from its
palate of black, brown and neu-
trals, giving a subtle sense of luxu-
ry. Art books line the walls in the
reception, reinforcing the Dojima’s
designer credentials.
The rooms are small but well
designed; in some rooms the doors
between bathroom and bedroom
can be opened to create a bigger,
possibly more unsettling, space.
Unlike many Japanese hotels, it’s
not geared towards tourists
(though the staff are excellent and
more than happy to help).
Locals congregate in the down-
stairs bar, the Diner, which takes its
influences from Europe, with
French pastries and a customised
take on the pizza.
At the top of the building is a
more intimate affair, the small
members bar Dojima Club. All dark
wood and low lighting, it’s got an
The Screen Hotel, Kyoto
MID the temples, shrines
A and palaces of Kyoto is The
Screen hotel, a true oddity.
A vibrant, jarring place in
one of the quietest parts of town,
The Screen is proud to be different.
With just thirteen rooms, each one
done by a different designer, it
boasts of its “creative culture”.
After the sleek professionalism of
other Japanese hotels, The Screen
takes some getting used to.
I was given the “most avant-
garde” of the rooms. It was black.
Black walls, black carpet, black ceil-
ing, black furniture. The intention
was to create a “silent, soothing
room” but with a near absence of
natural light, it felt like a solitary
confinement cell designed by Karl
Lagerfeld.
The emphasis on design works
better elsewhere in the hotel. Kyoto
is one of the oldest cities in Japan
and the hotel incorporates flashes
of the city’s history throughout the
hotel, from an old bamboo water
provide an opportunity to drop in
on some of Tokyo’s more neglected
areas. Nearby Shiodome, a futuristic
skyscraper-packed district that is
home to some of Japan’s biggest cor-
porations, makes Canary Wharf
look positively antiquated. You’re
authentic feel and has a large selec-
tion of cigars and whisky. While
Japanese whisky might once have
suffered the same reputation as
fountain in the lounge to fans in
the lobby and reworked traditional
motifs in the restaurant. Even the
restaurant is a mix of influences,
fusing Japanese and Western cook-
ing styles. Despite the clash of
FIRST-CLASS FISH 27
IN BATTERSEA
SEE TOMORROW’S
RESTAURANT REVIEW
Hyatt Regency, Kyoto
IKE Kyoto itself, there is nothing Save for the de-rigeur electric toilet seat
L showy about the Hyatt Regency.
Due to the city’s strict building
laws (there are virtually no high-
rises) the hotel is housed in an
unremarkable five-storey
(a staple of all Japanese hotels), there is
little in the way of gadgetry. At first, it’s
hard to believe you’re in a five-star estab-
lishment, but stay a while and
you’ll find that everything
building on the edge of is dripping with solid,
town. Step inside and unpretentious quali-
you'll find a tran- ty. Be sure to visit
quil, quiet lobby, the excellent
more reminis- Touzan restau-
cent of an rant and
opera house indulge your-
foyer than a self with a
bustling inter- traditional
national meal of
hotel. kaiseki ryōri,
The décor Kyoto’s take
is stylish but on haute cui-
understated: a sine, a tasting
giant piece of menu of beau-
fretwork, the tifully pre-
also perfectly located for a visit to shapes cut to pared morsels
the Tsukiji fish market, a must-see resemble a made from sea-
for any Tokyo visitor. A perfect Japanese kimono, sonal ingredients
example of high-end hotel living, serves as a low-hanging (ours included wagyu
Japanese-style. ceiling; the furniture, all beef, rolled eel, scallops
www.gardenhotels.co.jp/eng/ginza- beiges and creams, is low-slung and marbled cod). Happy to
premier, 03-3543-1131. and inviting. leave the glitz and glamour to Tokyo
The rooms, with floor-to-ceiling win- establishments, this hotel is a triumph of
dows that look out on a stunning tradi- restrained elegance.
tional garden, are similarly unflashy. www.kyoto.regency.hyatt.com, 075-541-1234.
T R E AT YO U R S W E E T H E A R T
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 28 Lifestyle | Travel and Gadgets CITYA.M. 14 FEBRUARY 2011

Is Nokia jumping off

the burning platform
and into the fire?

GEEK
SPEAK

Taking the easy route @steve_dinneen

N
OKIA finally confirmed a tie-up with Microsoft on Friday,
which sent a ripple of excitement through absolutely
nobody. At Mobile World Congress (MWC) this week it will
Family skiing trips don’t have to be a trial, says Jenny announce a new tablet. Or an Xbox phone. Or a giant laser
with which it will attempt to destroy the moon. It doesn’t really
Forsyth, if you get somebody else to take care of the kids mater – nobody will pay any attention anyway.
Its new chief executive Stephen Elop could drop his trousers and
run laps around the MWC site, frothing at the mouth and licking

G
RINNING broadly, my daughter proudly
displayed her Ski Esprit certificate – a
Little Miss Sunshine award. All week she
had smiled as a child helper trudged up
the slopes and made sure her boots and gloves
were fitting snugly before she practised her
“pizza” turns down the nursery trails at
Meribel, in France’s Three Valleys. Six-year-old
Eloise chattered happily as she wolfed down
hot dinners at the Chalet Hotel Alba and cheer-
fully whiled away the afternoon hours in a
Blue Peter craft-making heaven.
And after a final day of family skiing, when I
could watch satisfied as Eloise skied steadily
down the mountain and her brother Jake, eight,
honed his newly-learned parallel turns, I was
feeling more than a little smug. In fact, it’s fair
to say I was feeling like Mrs Sunshine myself.
That, in my book, is a perfect family snow
holiday, with adults free to ski unencumbered
all day, while the juniors crash into each other
instead of your knees. You stop for a long
mountain-top lunch, if you please, while they
quaff their hot chocolate with a table full of
children. They learn to ski without picking up
the type of “French” that turns the air bleu.
It’s an attitude, I know, that some parents
object to. And really, if you prefer the martyr-
dom of lugging your children’s gear up and the
down the hill each day, stopping oh-so-regular-
ly for toilet stops and cafe breaks to warm up
cold fingers, and giving up your dreams of
black run skiing so you can be off the slopes
around midday with your youngsters, who can
blame you? At least you’ll have no one else to
blame for the bad habits they’ve picked up.
The type of cosseted family skiing I’m talking
about, of course, comes at a price. There’s the
financial toll of all-day childcare, three meals a
day, ski lessons, evening “cocoa clubs” and the
babysitter for the big night out (well, the one
where you’re not having dinner with other
adults while the kids are tucked up and moni-
tored upstairs). And then there’s the cost of
being organised enough to book well ahead.
It’s at this time of year that the keenest mums
and dads start planning the February half-term
holiday – for next year. True, you can still find
last minute 2011 season places – for both half
term and Easter – and congratulate yourself on
not losing all spontaneity in the maternity
ward. But you are unlikely to strike the type of
discounts or availability, for both childcare and
lessons, that early booking brings.
For example, half term week next year in
Meribel’s Chalet Hotel Alba would cost a family
of four £4,960, with an additional £776 for two
children’s all-day childcare and ski lessons.
If you’ve got pre-schoolers, or are willing to
risk the wrath of a headteacher for pulling your
kids out of school, you can take advantage of
heavily discounted, “one child goes free” and
“free ski hire” deals from many operators.
The flip side, as my kids like to remind me, is
they can end up the only English children in
the ski school, with only each other to talk to,
an instructor giving English tuition as an after-
thought, and foreign-language films every
lunch time.
THE BUDGET OPTION
One option is to cut out the hand-holding –
and the cost – with a DIY family ski package.
Eurotunnel fares are around £150 return,
then add fuel for an eight to 10-hour drive to
the Alps, accommodation (self-catering apart-
ments for four cost from €1,400 per week for
half term through www.meribel.net), lessons
(British-founded ski school New Generation,
www.skinewgen.com, runs two-hour lessons
for four to five-year-olds for €235 a week or
four-and-a-half-hour lessons for over six-year-
olds for €395 a week) and lunches for the
whole family on the piste (think €5 for a plate
of chips). If you need to hire equipment, you
can save yourself time and trouble by booking
ahead from England, for easy pick up in the
Alps (www.intersport.com).
It’s a budget scheme, which wouldn’t work if
your children are too young for ski lessons, but
could be perfect for families with older chil-
dren ready to tour the mountains together.
And at least you wouldn’t face the mixed
blessing of children so entranced by the prom-
ise of an afternoon treasure hunt, they’d rather
not be picked up early for family skiing.
That’s what happened last year, when we
went as far as to book our family ski trip over
Christmas. With a guarantee of the three Ss –
Santa, Snow and Someone else to look after
the children and cook the turkey – I would rec-
ommend it as the ultimate feel-good family
holiday. With everything catered for, my
biggest dilemma was whether we’d get away
from snowbound England. And the kids had
only one pressing worry – how would Father
Christmas find us in France?
www.espritski.com, www.meribel.net
the windows of the BlackBerry stall, and people would only com-
plain he was obstructing their view of the new Playbook (I’m offer-
ing odds on this actually happening, by the way).
It must be frustrating for Elop. Nokia is the biggest smartphone
provider in the world. Its Symbian operating system was the most
common platform last year and it shipped almost a third of all
smartphones in 2010.
The problem is, Nokia is both vast and dull. It’s like Canada. Its
phones are about as exciting as the vast swathes of
icy tundra; characterless and difficult to navigate.
Sure, they both have their highlights. Canada has
Montreal. The camera on Nokia’s N8 is nice. But
this doesn’t make up for the N900. Or Celine
Dion.
Elop has been doing his level best to create
some buzz. In a “leaked” Nokia memo, he
said the firm was on a “burning platform”
and later, rather incongruously, quoted
Winston Churchill during his keynote. But is
this latest announcement a case of jumping off
the burning platform and into the fire?
A tie-up with Microsoft isn’t much of a sur-
prise. Elop (who, incidentally, hails from
Canada) was until September a Microsoft
man, responsible for its terribly exciting suite
of Office products. The software giant has a US
market share of between three and five per cent
for its Windows Phone 7 platform and is des-
perate to show it off (and it’s surprisingly good –
but only in the sense that discovering your
grandmother isn’t racist is surprisingly good; it
confounds your expectations but isn’t exactly
something to brag about). The deal makes sense
for them. It will raise the profile of Windows
Phone 7, place it in the hands of people who
wouldn’t have seen it otherwise, and if it catches
on, Microsoft can skip off into the sunset with
all the major handset-manufacturers.
For Nokia it is less straightforward. On the plus side, it can
escape its Symbian nightmare (partly responsible for Nokia’s mar-
ket share nose-dive) and resist strengthening Android further by
avoiding a deal with Google.
But Windows Phone 7 is unlikely to convince too many people to
buy Nokia. The deal has also effectively killed MeeGo, the Linux-
based operating system it has been jointly developing. Bizarrely, a
single, orphan MeeGo phone, the N9, will debut at MWC. The two
other phones expected this week are the E6 and X7, which will
probably run Symbian. With Elop seeming to scotch rumours of a
MeeGo-powered tablet, the question is: what exactly is Nokia going
to show off in Barcelona?
If the promise of future Windows Phone 7 handsets is the best it
can do, Nokia is not so much rearranging deckchairs on the Titanic
but sending a diving team to the bottom of the Atlantic Ocean to
drape bunting over its rusting shell.

TRAVEL NOTES | by Timothy Barber MOTOROLA MILESTONE 2

Cut-price luxe chalets Direct
Ultra high-end ski operator Scott Dunn is In addition to launching new routes to
offering savings of up to £4,000 per
group for two of its luxury chalets for the
week departing 27 March. Spa-tastic
Chalet Louise in Zermatt and Chalet
Pauline in Val d’Isere both sleep 10.
They’re going for £1,395 and £1,595 per
person respectively, including flights, driv-
er and half board. www.scottdunn.com
transfer at City
Florence, Avignon and Toulon, CityJet –
the airline flying from London City
Airport – now has a direct transfer
facility at the airport. Passengers with
onward connections at London City can
proceed straight to the new CityJet
transfer desk, with no need to re-check
in luggage. www.cityjet.com
THE Motorola Milestone 2 had a difficult task – to
improve upon the pretty awful Milestone. Its
appearance is similar, although the small aesthetic
changes make a big difference. The metallic navy hue
and metal rim look slick and it’s lighter than its prede-
cessor but still solid. But the greatest improvement is the
operating system, an overhauled version of Android 2.2.
Social networking is brought to the forefront and, while it
can look a little cluttered, it makes keeping up with Facebook
and Twitter very easy. Quite who will buy it, though, when
stronger alternatives are on the market, is unclear.
CITYA.M. 14 FEBRUARY 2011 Lifestyle | TV& Games 29

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

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12.05am Grimefighters Taio Cruz: Life of a Rockstar Steven Seagal. 2002.
12.30am The Zone; 12.45am Premier League Poker 12.50am SuperCasino strength threatens to destroy
ITV News Headlines 1.40am Mosley 2.40am Dispatches: 4.05am The FBI Files 4.55am Forthaven. Liam Cunningham stars.
2.35am UEFA Champions League Lessons in Hate and Violence Animal Rescue Squad 5.10am
Weekly 3am The Jeremy Kyle Show 3.40am The Last Dragon 5.30am- Wildlife SOS 5.35am-6am
3.55am-5.30am ITV Nightscreen 6am Wogan’s Perfect Recall House Doctor

SKY SPORTS 1 Afterburn 12am WWE: NXT 8pm Nikita 9pm America’s 11.05pm Skins 12.10am 4.40am Nasa’s Greatest
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7pm Sky Sports News at
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7pm IRB Rugby Sevens 9pm
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7pm Ghost Whisperer
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COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

QUICK CROSSWORD
    

SUDOKU KAKURO
22 13 3 23 41 17 7
11 18 12
  
6 15 7
Place the numbers from 1 to 9 in each empty cell so that each 28 11 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 24 16
42
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 14 17    
above or to the left of it. 6 15 5
You can only use the digits 1-9 11 13
   and you must not use the
8 12 29
45     
same digit twice in a block.
   The same digit may occur 14 12 
8 10
   more than once in a row or
column, but it must be in a 9 19
8
8
21
20
 
35 12
   separate block.
16
4 16 10
  9 10 12
 

   ACROSS DOWN
1 Appear suddenly (3,2) 1 Egyptian royal
  
   WORDWHEEL R M
4 Impertinent (5)
7 Answer back (6)
tomb (7)
2 Communion
plate (5)
Using only the letters in the Wordwheel, you have 9 Compass point (4)
   ten minutes to find as many words as possible,
N I 3 Less tainted (5)
10 ___ Brockovich, 2000 film
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters I starring Julia Roberts (4)
5 Retaliator (7)
6 Hindu social
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
E C 11 Sacred word or syllable
repeated in prayer (6)
class (5)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
E S 13 Units of force associated
8 Restraint
that confines
with gravity (4)
QUICK CROSSWORD 6 8 4 9 8 9 4 2
freedom (7)

E F H L I M I T
8 9 5 7 3 7 2 1 SUDOKU         
15 Female operatic star (4)
12 Passage (7)
5 2 3 1 8 1
         17 Maritime (6)
A G I T A T E I A
2 6 1 7 8 3 1 14 Perfumed (7)
G N R V N I
1 7 6 8 9 4 7 5
         20 Yule (4)
E L E C T R I C I A N
         16 Interior (5)
R A H H T 2 3 4 6 1
         21 Burden of responsibility (4)
C
F O R
V
G I V I
N P
N G
B
4 3 1
6 5
2 5
8 9
7 4
7 2
3
1
WORDWHEEL          22 Lasso (6)
18 Concern (5)
U N N E C E S S A R Y
7 9 3 8 9 5          19 Fool (5)
I A U A R W The nine-letter word was 23 Thin meat soup (5)
N T S I N A T R A 8 1 3 2 6 8 3 9         
TOUGHENED
G R O U P D Y Y 9 2 1 4 2 4 1 3          24 In a softened tone (5)
 Sport
30 CITYA.M. 14 FEBRUARY 2011

Ashton’s our natural born finisher

HEAD-TO-HEAD | WING WONDERS
Johnson thrilled by
After nine tries in his first nine games,
progress of England’s Chris Ashton is being talked of as poten-
tial England great, but he’s got a way to
try scoring machine go before he eclipses these three wingers.

RBS
6 NATIONS
BY JAMES GOLDMAN
ENGLAND manager Martin Johnson
hailed try scoring sensation Chris
Ashton as his side’s new talisman
following his record-breaking
exploits against Italy.
Ashton followed up his brace in
England’s RBS 6 Nations victory over
Wales with four more in Saturday’s
crushing 59-13 win over the Azzurri.
The 23-year-old now has nine tries
from his first nine internationals, a
haul which must have seemed
unthinkable to a player who was
considering returning to his rugby
league roots just 18 months ago.
But such has been his rapid rise to
prominence that Johnson compared
his impact to England’s only previ-
ous unqualified cross-code success
story, Jason Robinson.
“We need finishers. They make
the difference in games. Chris is
enjoying what he does but under-
neath that he does work hard, he is
conscientious and he wants to be a
very good player. Chris is a bit differ-
ent. When Jason Robinson came
into the team he was different and
Chris is different again.”
Ashton avoided a ticking off from
Ashton was the first
England player to score
four tries in a 6 Nations
games since 1914
Picture: ACTION IMAGES
Johnson after wheeling out his
trademark try scoring celebration
against Italy – dubbed the “Ash
Splash” – but despite the showboat-
ing, his feet are firmly on the
ground. Rory Underwood last week
predicted Ashton will break his
record of 49 England tries but the
Northampton wing refuses to even
consider it. “The day I start looking
at records is the day I am sure I will
stop scoring tries,” Ashton said. “My
aim when I got in the team was to
play the best I could and hopefully
the tries would come from that.”
England’s other wing, Mark
Cueto, made a similarly stellar start
to his international career six years
ago, before a dip in form saw him
slide into the wilderness. Cueto is
once again a fixture in the side, but
has warned Ashton he can expect to
become a marked man.
He said: “Teams start to target
you and they will throw extra
defenders. Whenever you do your
analysis on the teams you come up
against you pick out the threats
and without a shadow of a doubt,
teams will be looking at Ashy.”
RORY UNDERWOOD: The former RAF
pilot remains England’s record try scorer
with 49 from 85 Tests. He’s also the most
capped England back of all-time.
BEN COHEN: The nephew of England 1966
hero, George, is third on the all-time
England list with 31 tries from 57 games
and he won the World Cup in 2003.
JASON ROBINSON: Like Ashton, the
player nicknamed Billy Whizz was a
league star with Wigan. He scored 28
tries in his 51 internationals.

@ Liverpool came off better in Sturridge makes it

@
@
three from three
www.cityam.com
MORE NEWS
ONLINE
Torres transfer, insists Rush as Trotters kick on
FOOTBALL in, so that says everything about them.”
▲

BY FRANK DALLERES Uruguayan Suarez, who netted on his

LIVERPOOL may have seen former darling of

the Kop Fernando Torres defect to Chelsea,
but Anfield great Ian Rush believes time will
Reds debut and hit the post in Saturday’s 1-1
draw with Wigan, was infamously sent off
BOLTON WANDERERS 2
for handling during the World Cup to deny a
goal to Ghana, who lost the ensuing penalty EVERTON 0

!
prove the Reds did the better business in the shootout. And Rush lauds that as proof of a

BURN
last transfer window. champion’s mentality.
Torres has endured a miserable time since “When he handballed the thing he got FOOTBALL
▲

his British record £50m transfer, suffering sent off – for his country really, he was try-
BY FRANK DALLERES

2500
defeat to his former team-mates on his debut
last week, while one of his replacements,
£23m Luis Suarez, has impressed already.
CALORIES Andy Carroll, a £35m purchase from
Newcastle, has yet to make his Liverpool
bow, but club ambassador Rush has
high hopes for the 22-year-old,
and believes losing Torres but
gaining Carroll and Suarez
Visit us at Livepool represents great business.
“It’s taken two players to
Street Station to tone replace Torres – that’s how
good a player he was – but I
tummy, hips and thighss. think Liverpool have got
the better deal,” Rush told
Stepup@gmx.us City A.M. yesterday.
“He’ll do alright for Chelsea
but we’ve got to look to
www.vacupower.com Liverpool now and we’ve got two
fantastic players who I think will be
Call now: 07821 035 009 better in the long run. You’d never think the
supporters would be happy if Torres left. But
they seem to be with the two who have come
ing to protect them,” added Rush at a
Standard Chartered Football Clinic in
London, where disadvantaged children
received coaching and a lesson in financial
literacy. “When [Ghana] missed the
penalty you could see the excite-
ment on his face and that it
meant a lot to him. You can’t
buy that; it’s in you. He
seems to be a winner.”
Would he be happy for
Suarez to do likewise in
Liverpool colours? “Yeah
why not? It’s a natural
instinct to do that.”
Rush also believes Carroll’s
rough edges will be
smoothed out by Liverpool
boss Kenny Dalglish and his staff,
adding: “He’s still raw, but he’s a
great target man and header of a ball, has a
great left foot. With the right players and
coaching we will see a better Carroll.”
BOLTON boss Owen Coyle insists he is happy
for his club to act as a finishing school for
youngsters at bigger clubs after on-loan
Daniel Sturridge struck again.
Sturridge smashed a fine volley to take his
tally to three goals in three games since join-
ing on loan from Chelsea until the end of
the season.
And Coyle said: “I am not surprised. These
young players are just craving a platform to
go and play.
“There are some terrific young talented
players out there, most of them will be at the
elite clubs. But there is no shame in not
being in the Arsenal or Chelsea team. If I feel
there are players who can benefit Bolton I
will do everything in my power to bring
them here.”
Centre-back Gary Cahill headed Bolton in
front via a deflection, and after the break
Sturridge wrapped up a win to keep the
Trotters eighth in the Premier League.
CITYA.M. 14 FEBRUARY 2011
Ireland take credit Kid Cassidy lucky, says trainer
but not the victory
IRELAND
FRANCE
▲
RUGBY UNION
BY JAMES GOLDMAN
IRELAND head coach Declan Kidney
admitted his side only had them-
selves to blame after France escaped
from the first RBS 6 Nations match to
be played at the Aviva Stadium with a
scarcely deserved victory.
Fergus McFadden, scrum-half
Tomas O’Leary and Jamie Heaslip all
crossed as the hosts, playing by far
the more adventurous and cohesive
rugby, won the try-count 3-1, but the
concession of needless penalties
allowed the French, aided by the boot
of Morgan Parra, to make it two wins
from two.
And Kidney refused to take consola-
tion from an ambitious display,
undermined by the number of errors.
SPORT | IN BRIEF
Resilient Quiros prevails in Dubai
GOLF: A rollercoaster round involving
both a triple-bogey and a hole-in-one saw
Spain’s Alvaro Quiros see off a host of big
names to win the Dubai Desert Classic.
Quiros lost his ball up a palm tree at the
eighth but hit the perfect tee-shot at the
11th, and went on to win by one shot on
11 under par. Denmark’s Anders Hansen
and South African James Kingston were
second, while Tiger Woods fell out of
contention with a woeful round of 75.
Bale set to miss AC Milan clash
FOOTBALL: Tottenham boss Harry
Redknapp says Gareth Bale is likely to
miss tomorrow’s Champions League trip
to AC Milan, despite making suggestions
Results
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email sport@cityam.com
31
trainers have suggested they may and knuckled over for a second.
▲
HORSE RACING
BY JAMES GOLDMAN have suffered electric shocks and a “It does appear it was to do with
section of cable has since been electricity and underground cables.”
TRAINER Nicky Henderson believes removed from the paddock area. Stuart Hogarth, operations direc-
Kid Cassidy is “extremely lucky” to “Kid Cassidy was extremely lucky tor for Southern Electric Power
be alive after two other horses died as he definitely got the effect,” said Distribution, said yesterday: “A sec-
at Newbury on Saturday. his trainer Henderson. tion of electricity cable has been
An investigation is under way “It was something that none of us removed from the paddock area for
after Fenix Two and Marching Song have ever seen before and we hope further detailed inspection.
died in the paddock, while Kid never to see again. “Our initial on-site investigations
Cassidy was withdrawn after show- “Kid Cassidy was just walking last night confirm there was no dan-
ing signs of distress. The horses’ round and went over on to the grass ger to the public.”
“The feeling is that’s an opportunity
22 lost. We had too many turnovers,”
said Kidney. “We won the try-count 3-
1 but still lost the match so we’ll have
25 to look again at the penalties to see
which ones were under our control.
“We need to keep playing this way
and get used to doing it at Test level.
It is the right way forward for us.”
Ireland held a deserved 15-12 half-
time lead and the Grand Slam cham-
pions appeared there for the taking.
Winger Maxime Medard crossed to
help France back into the driving seat
until No8 Heaslip crashed over in the
right corner to set up a tense finish
which saw Les Bleus just about hold on.
RBS 6 NATIONS
TEAM PLD W D L F A PTS
England 2 2 0 0 85 32 4
France 2 2 0 0 59 43 4
Wales 2 1 0 1 43 32 2
Ireland 2 1 0 1 35 36 2
Scotland 2 0 0 2 27 58 0
Italy 2 0 0 2 24 72 0
to the contrary. Winger Bale hit a hat-
trick in the San Siro earlier this season
when Spurs lost 4-3 to Inter Milan, but
looks set to miss out on the club’s return.
Redknapp said: “I’d like to be able to
scare Milan a bit but he’s struggling to
get over this back injury.”
Gloucester scrape into top four
RUGBY UNION: Gloucester climbed to
fourth in the Premiership after a late let-
off in a 10-9 win at Wasps. A try from
James Simpson-Daniel and the kicking of
Nicky Robinson put the visitors ahead,
but Wasps came back through three
Dave Walder kicks and had a late chance
to nick victory but Walder’s drop-goal
attempt was low and wide.
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