The Forum: Our New Comment Section

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ITALY suffered a shock downgrade
from Standard & Poors late last night,
which the ratings agency blamed on
the political squabbling that is pre-
venting the government from reacting
properly to its financial woes.
S&P said the downgrade by one
notch to A/A-1 also comes with a nega-
tive outlook, warning that Prime
Minister Silvio Berlusconis austerity
package will likely do little to boost
Italys economic performance.
In a separate blow to the Eurozones
chances of a quick recovery, Greek
leaders failed to come to a deal with
the IMF and European authorities,
putting off a decision on further aus-
terity measures until tonight.
Greece insisted that it was close to
deal to get the troika the IMF,
European Commission and European
Central Bank (ECB) to release its next
8bn (6.9bn) instalment of aid, with-
out which Athens will go bankrupt
next month.
The troika had refused to return to
Athens, having failed to get a firm
plan from Greece at the weekend, and
instead held a conference call.
The uncertainty sent stocks down
and debt costs up: the shares of
Barclays, Lloyds and Socit Gnrale
all plunged more than five per cent.
Greek yields continued their inex-
orable rise, with investors demanding
a sixty per cent pay-out rate to lend to
the Greece for just two years.
The brinkmanship over Greeces
sixth tranche of aid is the second time
in three months that its lenders have
threatened to stop paying because
Athens is unable to meet its targets.
Meanwhile, the ECB revealed that it
bought another 9.8bn of bonds last
week in an attempt to keep a lid on
government yields, bringing its total
purchases to 152.5bn.
BY JULIET SAMUEL
EUROZONE
INVESTORS expect the Federal Reserve

to pave the way for Operation Twist
this week, a method of stimulus first
used in 1961 that was named after the
popular dance.
Markets think the Fed will opt for
the Twist instead of steaming ahead
with a controversial third phase of
quantitative easing, dubbed QE3.
With few signs of further QE to
boost equities, the Dow Jones sank
nearly one per cent yesterday, as wor-
ries over the ongoing Eurozone debt
crisis weighed on sentiment.
Equities were also hit by more bick-
ering between senior Democrats and
Republicans, with few signs of com-
promise over how to tackle the coun-
trys mammoth annual budget deficit.
Republican John Boehner rejected
President Obamas plan to raise $1.5
trillion in new revenues: The govern-
ment has a spending problem and I
dont believe it makes sense to tax peo-
ple we expect to invest in our econo-
my, he said.
American 30-year Treasury bonds
rose more than two points ahead of
the Feds anticipated purchasing of
longer-dated securities.
Operation Twist would see the Fed
sell shorter-term paper to finance the
acquisition of longer-term bonds, in
order to hold down long-term yields,
with the aim of boosting private sector
investment in the economy without
having to increase the size of its own
balance sheet.
Yields on 30-year Treasuries sank
nine basis points to 3.18 per cent after
the rumours circulated.
An active twist is the most likely
outcome of the meeting, but we think
expanding the Feds balance sheet
would be more effective, said Jeremy
Lawson of BNP Paribas.
We look for the Fed to adopt a flex-
ible approach committing to a month-
ly run rate of $55bn, rather than some
large upfront sum -- we estimate that
Operation Twist could amount to as
much as $420bn, added Socit
Gnrale, in a note.
If the Fed were to commit to main-
taining the balance sheet at at least
the current amount, this would be a
strong hint that QE3 would be consid-
ered if necessary, it said.
Speculation over the central banks
plans surfaced in yesterdays Wall
Street Journal,
widely considered
to be privy to the
Feds upcoming
announcements.
The Feds com-
mittee is meeting
today and tomor-
row, and will offi-
cially announce
its policy deci-
sion tomorrow
evening.
Ben Bernanke is
expected to
announce
Operation Twist,
first used in 1961
and named after
the popular dance
BY JULIAN HARRIS AND TIMWALLACE
US ECONOMY
www.cityam.com Issue 1,471 Tuesday 20 September 2011 FREE

BUSINESS WITH PERSONALITY
Certified Distribution
01/08/11 till 28/08/11 is 92,745
THE FORUM: OUR NEW COMMENT SECTION
TODAY: MARK LITTLEWOOD ON VINCE CABLES SPEECH;
OCADO ANALYSED; WHY MORE BANKS NEED TO FAIL P28-29
LETS TWIST AGAIN
... like the Federal Reserve did back in 1961
S&P downgrades Italy while Greek aid talks drag on
News
2 CITYA.M. 20 SEPTEMBER 2011
Lib Dems: cuts
are necessary
DEFICIT-CUTTING policies were
defended in yesterdays speeches at
the Lib Dem party conference.
Labour left the country with a dan-
gerous, unstable level of state borrow-
ing, said Vince Cable, and trimming
that is unavoidable if our country
and party are to be taken seriously.
Nick Clegg too warned that markets
are demanding action on the deficit.
But the Liberal Democrat partys
longer-term goals are certainly not
those of their Conservative allies.
The progressive agenda of centre
left parties cannot be delivered by
bankrupt governments, said Cable,
taking a shot at the Labour party.
Tax cuts are a childish fantasy,
Cable said, accusing politicians who
advocate them of assuming that
Santa will pop down the chimney and
leave presents under the tree as there
is no money to pay for them.
Bankers also took a bashing, as they
were accused of failing to perform
their basic function of channelling
savings into productive investment.
Cable announced his support for ring-
fencing retail and investment banks.
The speech also included support
for freeing up business, with Cable
vowing to cut red tape which is suffo-
cating growing companies which cre-
ate jobs, though specific measures on
red tape and were not detailed.
However, more details were given
on redistribution, with the mansion
tax taking centre stage.
Cable wants a wealth tax targeting
homes valued at over 2m, stressing
his partys focus on fairness.
WHAT THE OTHER PAPERS SAY THIS MORNING
Not the economic equivalent of war
There is something bizarrely enjoy-
able about Liberal Democrat confer-
ences. It is the occasion to hear our
so-called equalities minister, Lynne
Featherstone, blame the worlds prob-
lems on men; and to listen to others
being nasty to people who own or
hope one day to own a nice home in
London or the home counties. In their
desperation to impose ever more puni-
tive taxes, the Lib Dems are moving
the political debate leftwards. The
post-Tony Blair era is well and truly
over; not since the early 1990s has the
British left been so anti-wealth and
in those days, it was counterbalanced
by a much more pro-capitalist Tory
party than anything todays
Cameroonism can muster. It is hard to
see how the present coalition makes
any sense intellectually.
But the line I found the most
intriguing came from Vince Cable: he
claimed that the economic challenges
facing the UK are the equivalent of
war. Cable meant it partly to describe
the magnitude of our problems and
also as a justification for coalition gov-
ernment: there was a government of
national unity during the second
world war. But the analogy was mis-
placed this is not a war and pretend-
ing that it is will merely retard the
recovery. As F.A. Hayek, a Nobel prize
winning economist, pointed out in his
Road to Serfdom, wars involve the
state grabbing huge powers over the
economy. Huge amounts of labour,
capital and land are diverted to pro-
ducing weapons and fighting the
enemy, meaning that people have less
to spend on things they actually want.
This usually involves rationing and
extreme protectionism. The result is
that capitalism almost dies, replaced
instead by a centralised, dirigiste and
deeply corporatist economy, where
only companies with close links to the
state profit and the rest wither.
Of course, wars are sometimes
needed; pacifism is a stupid ideology.
But what we need right now is the
opposite of a war-like approach to the
economy: we need less planning, less
dirigisme, less regulation, less central
direction of economic resources and
much more individual initiative. We
need a bottom-up renaissance. Sadly,
and in large part because of statists
such as Cable, none of this is happen-
ing. The government is still set to
spend 50.1 per cent of GDP this year,
according to the OECD; and more new
rules are being introduced than are
being repealed. No wonder there are
growing fears that weak growth will
make George Osbornes plans to elimi-
nate the structural budget deficit over
the next few years impossible to meet.
Cable is only half right that the
post-war pattern of rising living stan-
dards has been broken. Certainly the
current deterioration is remarkable in
its intensity. Average living standards
often fall in recessions, especially
severe ones: when there is less output,
there is less money to go around.
There was always going to have been
years of pain yet the present ongoing
stagnation could have been reduced
in length had the post 2008 response
been different and more of the boom-
time malinvestments that still plague
the economy been purged faster.
House prices have further to fall; he
public sector is unreformed; insuffi-
cient amounts of debt have been writ-
ten off; and the coalition is not
making the economy more competi-
tive. Falling living standards are
inevitable short term but if this
decline isnt reversed soon, it will be
the coalitions policies, not the legacy
of the recession, that will be to blame.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Business secretary Vince Cable says the deficit must be cut to further centre-left aims
NEWS | IN BRIEF
RBS boss makes loss on shares
Royal Bank of Scotland head of global
banking and markets John Hourican has
sold 1.1m of his shares in the bank at a
rate of just 24p. Shares in the bailed-out
bank were worth 44p last year when
Hourican received a massive share
bonus. But he was forced to hold on to
them for six months as the stock
dropped. Despite the tumble, Hourican
won out by selling on Friday, as the
share price dropped to 22.9p yesterday.
Calls for foreign cash transparency
More US companies are being asked to
reveal how much cash they hold over-
seas by the Securities and Exchange
Commission (SEC). Income earned
abroad is taxed at rates of up to 35 per
cent when it is brought back into the
US, prompting many firms to leave it sit-
ting in foreign accounts. Companies are
not currently obliged to reveal their
holdings with foreign banks. Regulators
fear that the status quo may be divert-
ing investment out of the US, prompting
a desire for greater transparency. The
Obama administration has signalled it is
unwilling to bow to pressure to curb
repatriation taxes.
EDITORS LETTER
ALLISTER HEATH
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News Editor David Crow
Acting Night Editor Marion Dakers
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BY TIM WALLACE
LIB DEM
CONFERENCE
Deputy Prime Minister Nick Clegg told party
activists: Weve got to stop beating ourselves
up, as he stuck up for the partys role in the
coalition.
Clegg also hit out at Prime Ministers
Question Time, describing the weekly
Westminster event as tedious, ghastly, pre-
dictable tribalism.
Twitter and other social network sites must
not be restricted, according to a Lib Dem
motion concerning the recent riots. The party
also attacked the removal of benefits and hous-
ing from people who took part in the rioting.
Page 3 girls in tabloids would be a thing of
the past if some Lib Dems have their way. A
motion was passed to restrict sexualised
images in newspapers.
Land Rovers decision to build a fresh 335m
plant in the Midlands was hailed by both Nick
Clegg and Vince Cable.
YESTERDAY AT CONFERENCE
SIEMENS SHELTERS CASH AT ECB
Siemens withdrew more than half a
billion euros in cash deposits from a
large French bank two weeks ago and
transferred it to the ECB, in a sign of
how companies are seeking havens
amid Europes sovereign debt crisis.
The German industrial group with-
drew the money partly because of
concerns about the future financial
health of the bank and partly to bene-
fit from higher interest rates paid by
the ECB, according to a person with
direct knowledge of the matter.
LLOYDS TO SELL 1BN OF BAD LOANS
Lloyds has launched the sale of a port-
folio of commercial property loans
worth 1bn in a sign that the bank is
accelerating the process of unwind-
ing its 24bn bad loan book. The high-
ly anticipated sale, which includes
loans made at the top of the market
on offices, high street shops and fac-
tories, is understood to have attracted
interest from pension funds, private
equity groups and overseas investors.
SOROS HIRES NEW INVESTMENT BOSS
Soros Fund Management has appoint-
ed Scott Bessent, a former employee
of the firm who headed its London
office at the time of its famous bet
against sterling, as its new chief
investment officer. The move comes
barely two months after the hedge
fund founded by George Soros
announced its intention to return all
external investor funds
FRANCE TELECOM STARTS SWISS SALE
France Telecom has begun the sale of
its Swiss mobile operations this week
in a process that could raise more than
1.5bn before the end of the year for
the fourth-largest European telecoms
company by revenue. Details of the
sale of Orange in Switzerland, which is
the third-largest mobile operator in
the country, have been sent to about
12 potential bidders.
BRITONS SPEND 9BN A YEAR ON DEBT
One in four Britons are using more
than 40 per cent of their wages each
month to pay off non-mortgage debt,
according to new research from
Moneysupermarket.com. The study
indicates that average monthly repay-
ments on products such as credit
cards and personal loans are 322 per
person, 25 per cent of the average UK
income at 1,288. Repayments total
almost 9.4bn a year.
FEARS THAT ONE IN TEN SHOPS WILL
STAY EMPTY
High streets are declining at their
fastest rate and more than one in ten
shops will remain vacant for the
foreseeable future, according to a
report released today. The British
Council of Shopping Centres blames
a decrease in consumer spending, an
increase in online retail and the
boom in supermarket sales.
EZRA EYES LONDON LISTING
Ezra, the maker of giant floating off-
shore oil platforms, is considering a
dual listing in London once the cur-
rent market volatility has calmed.
Lionel Lee, managing director of the
group known in industry as EMAS,
said London would be an attractive
place to list, but no decisions have
been taken on a secondary listing.
Ezra, which is currently worth
S$800m (400m), is listed in
Singapore and one subsidiary is listed
in Norway.
DOW WINS RIGHT TO OLYMPIC WRAP
Global chemical giant Dow will be
allowed to promote and display its
distinctive red diamond logo on cer-
tain sections of the Olympic Stadium
for a short time before the 2012
London Games after winning the
right to produce the controversial
6m wrap.
CHRYSLER EXPECTS UAW CONTRACT
Chrysler Group chief executive Sergio
Marchionne said he is confident the
company can reach a new four-year
contract with the United Auto
Workers union and will return to
Detroit on Tuesday to rejoin negotia-
tions. I expect to get a deal soon,
Marchionne said at the unveiling of a
commercial van in Turin, Italy. We
have to move on and get this issue
behind us.
OPEC HEAD SEES GULF OUTPUT CUT
Gulf oil producers, already facing a
weakening demand picture in 2011
and 2012, are expected to cut their
output once Libya resumes produc-
tion, the top Opec official said yester-
day. Opec secretary General Abdalla
Salem el-Badri, a Libyan, told a forum
that Libya could reach pre-unrest pro-
duction levels within 15 months, as
few key facilities were damaged.
WHAT THE OTHER PAPERS SAY THIS MORNING
News
VINCENT Tchenguiz has settled his
1.5bn lawsuit against collapsed
Icelandic bank Kaupthing in a confi-
dential deal he branded mutually
acceptable.
It is understood the property
tycoon will regain control of assets
put forward as securities for a series
of loans, which had been effectively
frozen by the banks administrators.
He is now likely to press ahead with
a radical restructuring of his empire,
which could begin in a matter of
weeks.
It is not clear whether the settle-
ment with Kaupthing will include
compensation to Tchenguiz, who told
City A.M. earlier this year his legal
expenses alone have already run into
many millions of pounds.
Tchenguiz said: All the parties
have had to take some very public
steps in the wake of the collapse of
Kaupthing, in 2008, in order to pro-
tect their respective legal rights.
However, in the meantime, the
strength of our asset base and the
commercial opportunities available
to us have enabled us to work togeth-
er with Kaupthing to achieve an out-
come which benefits everyone.
I am delighted that we have been
able to bring this complex matter to
a satisfactory conclusion and to
have dispensed with all the uncer-
tainties, which have proved so
restricting.
The Tchenguiz family trust had
mounted legal action in both
Iceland and the UK over allegations
Kaupthing defrauded him by mis-
representing its perilous financial
state. He said the administrators
had decimated the value of his
property business, which he main-
tained was still viable.
The settlement will raise fresh
questions over the Serious Fraud
Office (SFO) investigation into
Tchenguizs relationship with
Kaupthing, over which he was arrest-
ed earlier this year in a dawn raid,
before being released without
charge.
Tchenguiz called for a judicial
review into the arrest, claiming the
SFO had no reason to suspect he
would not have cooperated with the
investigation and questioning the
technicalities of their raid on his
properties.
Tycoon ends
1.5bn case
against bank
HUGH Osmond is considering the cre-
ation of another shell company fol-
lowing the early success of Horizon,
the listed vehicle he has used to buy
the power business APR Energy.
Yesterday shares in the newly-listed
APR Energy started trading on the
stock market following Horizon's
acquisition of APR Energy earlier in
the year. Horizon initially raised more
than 400m through issuing shares
on the stock market before the APR
deal had been identified.
Yesterday APR shares closed 16 per
cent higher than their launch price
after the first days trading, following
a positive set of meetings on the com-
panys roadshow, valuing the group
at more than 1bn. Numis has been
acting as sole adviser to APR on the re-
listing.
Hugh Osmond looks
to a new Horizon
BY STEVE DINNEEN
ENFORCEMENT
Vincent Tchenguiz
has reached a
mutually accept-
able deal with
failed Icelandic
bank Kaupthing
Picture: REUTERS
BY DAVID HELLIER
CAPITAL MARKETS
THE FAMILY of the murdered school-

girl whose phone was hacked by
News of the World journalists are
close to finalising a record 3m pay-
out from the papers owner.
Milly Dowlers parents are under-
stood to be ready to accept the mam-
moth sum from Rupert Murdochs
newspaper business, with a sizable
portion earmarked for a charity.
Sources close to the deal, which
will include legal expenses, say it
could be tied up as soon as this week.
News International hope the land-
mark payment will help to draw a
line under the scandal that has
claimed several top executives as well
as the iconic News of the World title.
A company spokesman said: News
International confirms it is in
advanced negotiations with the
Dowler family regarding their com-
pensation settlement.
No final agreement has yet been
reached, but we hope to conclude the
discussions as quickly as possible.
The settlement will eclipse com-
pensation payments made to other
phone hacking victims, with Sienna
Miller accepting 100,000. Several
other cases are still being processed,
including that of comedian Steve
Coogan.
News International ready to pay
3m to family of Milly Dowler
BY STEVE DINNEEN
MEDIA
Focus on UBS
Its time to quit investment banking
UBS SHOULD quit investment bank-
ing. Not because it is inherently risky,
nor because regulators or politicians
say so. It should shut or at least dra-
matically shrink the investment
bank because it isnt very good.
Consider this: since the start of
2009, the investment bank at UBS has
only posted a pre-tax operating profit
in excess of $1bn on three occasions:
the first quarter of 2010 ($1.4bn); the
second quarter of 2010 ($1.5bn); and
the first quarter of 2011 ($1bn) (see
graph bottom right).
In the first three quarters of 2009 it
posted combined losses of around
$7bn, while it also made a loss of
$460m in the third quarter of 2010.
In the remaining four quarters, it
made a combined profit of just
$874m. Over the entire period, it lost
$2.6bn.
Of course, it will post a loss yet
again in the third quarter following
the $2.3bn rogue trading hit, which
will also wipe out profit at group
level (estimated at $1.5bn).
But the point is the investment
bank would have been unable to
withstand a writedown of this mag-
nitude at any point in the last ten
quarters.
Oswald Grubel, the banks chief
executive, has said rogue trades are
unavoidable. If someone acts with
criminal energy, then you cant do
anything. That will always be the case
in our business.
So the investment bank cant avoid
trading losses of this kind. Nor can it
make enough money to offset them.
It doesnt sound like this investment
banking lark is going to work.
Worse still, the reputational dam-
age will infect its core wealth man-
agement and private banking
businesses. Net new assets only
turned positive towards the end of
last year, as wealth clients dipped
their toes in the water following the
financial crisis and US tax probe. This
latest scandal is likely to send them
running for the hills once more.
BOTTOMLINE
Analysis by David Crow
ANALYSIS l UBS Investment Banking Division
UBS Investment bankingdivision - CHFbillion
Operatingincome
Operatingprofit before tax
IBas a %of total
operatingincome
Q1 09 Q209 Q309 Q409 Q1 10 Q210 Q310 Q410 Q1 11 Q211
Q1 09 Q209 Q309 Q409 Q1 10 Q210 Q310 Q410 Q1 11 Q211
10
3.0
2.5
2.0
1.5
1.0
0.5
-0.5
-1.0
-1.5
-2.0
-2.5
-3.0
-3.5
50
40
30
20
10
0
-10
8
6
4
2
0
-2
UBS Investment bankingdivision - CHFbillion
0.0
UBSs reputation has been hit by the rogue trading scandal Picture: AFP / GETTY
UBSs investment banking chief
Carsten Kengeter has blamed the
media for providing ill-informed cov-
erage of the lenders losses from its
rogue trading fiasco.
In a letter sent to employees of the
battered division yesterday, he wrote:
Do not be distracted by the often ill-
informed media commentary around
this event. It will fade quickly as the
facts become known.
He also tried to rally workers in the
investment bank, which is already
enduring heavy job losses and is likely
to see more as a result of the $2.3bn
(1.5bn) losses incurred due to unau-
thorised trades.
We must channel the emotion and
disappointment felt by everyone across
the firm, Kengeter said, telling his
staff that UBSs healthy and vibrant
investment bank is crucial for the rest
of the lenders operations.
He also tried to counter suggestions
that clients were ready to abandon the
bank. Clients are inundating us with
messages of support, and placing new
business with us, showing how much
they want us to succeed, he claimed.
And he promised switch action for
those in charge of the banks failings:
We will deal appropriately with those
individuals who were responsible for
significant operational and manage-
ment supervision lapses, and then we
must move on.
However, markets are anticipating a
significant scaling back of the invest-
ment bank.
Collins Stewart analyst Matthew
Czepliewicz said that shrinking the
division would be positive for the
share price, but also warned: Key
questions raised by the trading loss
about the integrity of internal over-
sight systems remain unanswered.
UBS executive
Kengeter hits
out at media
BY JULIET SAMUEL
BANKING
Focus on UBS
ANALYSIS l UBS
CHF
13Sept 14Sept 15Sept 16Sept 19Sept
11.00
10.75
10.50
10.25
10.00
10.07
19 Sept
Oh for the days of the Warburg powerhouse
E
VEN before the discovery of the
rogue trades at UBS last week,
there had been much discus-
sion about the future of the
Swiss-based banks investment arm.
Sceptics say that UBS, which owns
the Warburg name that was such a
powerhouse in London until its sale
to Swiss Bank (itself later taken over
by UBS) in 1995, has been running
out of steam lately, especially in the
UK.
For one thing, many of the old
Warburg names have left; the likes of
corporate financiers such as Robert
Gillespie (to Evercore and then the
Takeover Panel) and Robin
Budenberg (to UKFI, the agency that
manages the governments stakes in
the banks).
UBSs disastrous foray into sub-
prime mortgages, which led to the
bank losing $50bn during the last cri-
sis, obviously had an adverse impact
too on some areas of the investment
banking business.
TUMBLING DOWN THE TABLES
Recent figures from Dealogic show
that UBSs share of the UK invest-
ment market (in terms of M&A, equi-
ty capital markets and debt capital
markets) has deteriorated from 6.2
per cent in 2009 to 4.9 per cent in
2011, taking it from fifth to seventh
place in the league tables.
In FTSE 100 brokerships, the
decline is less steep, despite the fact
the firm has lost some key players
such as Philip Shelley, who defected
to Goldman Sachs to become joint
head of corporate broking.
In equities research, the picture
appears to be healthier, with Mark
Stockdale regularly picking up
awards for the firms work. Equally
the bank has a strong cash equities
business, which is also a massively
strong business in Asia.
Those that hire UBS for advisory
work speak highly of the quality of
the firms advice. Despite the defec-
tions, a core group of advisers remain
such as Hugh Glyn-Davies, Tim
Waddell and Nick Reid.
Will UBS and its beleaguered man-
agement stick with its investment
bank now that its critics will be
demanding less risk, not more?
Yesterday investment bank chief
Carsten Kengeter tried to rally the
troops, urging them not to let the
rogue trade episode deflect the bank
from achieving its long-term goals.
Employees from other divisions, he
said, have confirmed how they can
not achieve their goals without a
healthy and vibrant investment bank
alongside. No doubt there are others
who feel quite differently. The argu-
ment has just begun.
david.hellier@cityam.com
INSIDE TRACK
DAVID HELLIER
CREDIT Suisse is to pay a fine of
150m (130.5m) to end an investiga-
tion of its employees in Dsseldorf
over allegations they helped citizens
dodge taxes.
Switzerlands banking secrecy
rules, which have been used by for-
eigners to hide money, have come
under pressure in recent years as
their cash-strapped governments try
to crack down on tax dodgers. In
February Credit Suisses offices in
Germany were raided and Germanys
campaign against tax evasion also
ensnared Julius Baer, which paid a
50m fine this year.
THE Swiss parliament narrowly reject-
ed a bid yesterday to ban risky invest-
ment banking at its big lenders, put
forward by in response to UBSs state-
ment it had lost $2.3bn (1.47bn) on
unauthorised trades.
Social Democrat Susanne
Leutenegger Oberholzer yesterday
asked parliament to discuss a ban on
investment banking as part of a debate
on tough capital laws aimed at pre-
venting a repeat of the Swiss govern-
ment bailout of UBS in the financial
crisis. But parliament narrowly reject-
ed her bid to reopen the debate, with
55 votes against and 42 in favour.
Swiss reject ban
on risky banks
Credit Suisse to
settle tax case
BANKING
BANKING
for 3 January 2012?

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Visit t.gov.uk/lezlondon
LLOYDS has kicked off the search to
replace its chief financial officer Tim
Tookey after he quit to move back into
the insurance industry at Friends Life.
Tookeys departure makes him the
third executive to fall by the wayside
during chief executive during Horta-
Osrios seven-month tenure, complet-
ing a clean-out of the executive board
that was in place before his arrival.
Although the search has nearly six
months to run until Tookey leaves,
recruiters in the field have suggested
that the bank could try to wrestle a
CFO away from a rival, such as
Barclays Chris Lucas or Standard
Chartereds Richard Meddings.
Others have praised Close Brothers
Jonathan Howell: He has FTSE 100
credibility and Close has been a phe-
nomenal story, said one source.
Alternatively, chief executive
Antnio Horta-Osrio could stay true
to form and promote a close lieu-
tenant, with head of wholesale Nathan
Bostocks name already in the frame.
Bostock worked with Horta-Osrio at
Santander UK and was poached back
from RBS by his former boss in July.
Yesterday Tookey denied reports that
his decision was the result of any argu-
ment with Horta-Osrio, who has
remodelled the banks entire top team
since taking the reins in March.
Theres been absolutely no disagree-
ment on strategy between Antnio and
I, he said. Ive greatly enjoyed develop-
ing the strategy with Antnio, bringing
it to the market at the end of June and
being part of the team thats now
focused on delivering it.
The bank will also be on the lookout
for a new non-executive after announc-
ing that deputy chairman Lord Leitch
is leaving due to increasing time pres-
sure from his other... commitments.
Since March, Horta-Osrio has
aggressively rearranged his manage-
ment team, promoting David
Nicholson to head of Halifax and John
Maltby to lead Lloyds commercial
division.
BY JULIET SAMUEL
BANKING
A MAJOR investor in British banks has

slammed the Independent
Commission on Banking (ICB) as com-
pletely unnecessary and likely to
drive HSBC and Standard Chartered to
Asia.
Speaking during a web-conference,
Schroders head of UK equities Richard
Buxton (pictured), who manages a
2.9bn UK fund, said: On a three-year
time horizon, is it extremely like-
ly it will encourage HSBC
and Standard Chartered to
switch domicile.
They may not necessar-
ily lose their London list-
ings but, in terms of the UK
shooting its economy in the
foot by losing tax revenues,
it is hardly a sensible idea.
This will be poor news for
the UK economy, he
added, calling the
ICBs 4-7bn cost estimate of the ring-
fence proposal nonsense.
He also warned that a ring-fence
could exacerbate financial instabili-
ty during a crisis by encouraging
deposit flight from non-ring-
fenced banks. And he said that
many of the ICBs other proposals
were already being introduced.
As City A.M. revealed
recently, Hong Kong is
sparing no effort to
woo HSBC.
Buxton: Vickers bad ideas
will drive our banks to Asia
BY JULIET SAMUEL
BANKING
News
CFO Tim Tookey denied reports he had argued with Antnio Horta-Osrio
Lloyds begins
hunt for new
finance chief
HORTA-OSRIO CLEARS THE DECKS
Archie Kane
Kane, former execu-
tive director of insur-
ance, retired from
the bank in March,
just after Horta-
Osrio took the reins.
Truett Tate
Truett Tate was
shifted out of his
executive board
position as head of
wholesale and made
vice-chairman, a
non-exec board role.
Helen Weir
Weir opted to leave
the bank in March
when her role as head
of retail was changed.
She was replaced by
Alison Brittain, a
Santander UK exec.
Lord Leitch
Sandy Leitch quit his
non-executive board
role yesterday. He will
also step down as
chairman of Scottish
Widows but will stay
as an adviser.
ANALYSIS l Lloyds
p
36
32
33.42
19 Sept
ONLINE grocer Ocado said yesterday
that sales growth slowed in the third
quarter and full-year profit margins
were likely to be lower than expected
as the company ploughed cash back
into the company.
The company, whose stock floated
at 180p in July 2010, said growth was
held back by capacity constraints.
Ocado said gross sales rose 16.9 per
cent to 148m in the 12 weeks to 7
August down from a 17.2 per cent
lift in the second quarter.
It blamed the slower growth on its
the lack of capacity at its Hatfield cus-
tomer services processing centre,
which is to receive an 80m revamp.
Ocado chief finance officer Andrew
Bracey said: We have a strong busi-
ness but are giving a cautious out-
look. Meanwhile, chairman Michael
Grade bought 83,000 shares in the
company yesterday.
Ocados shares tumbled 11.44 per
cent yesterday.
OPINION ON OCADO: PAGE 29
Ocado slumps
as its margins
are squeezed
BY JOHN DUNNE
RETAIL
FASHION group French Connection

said it was firmly back on a growth
path, highlighting major overseas
opportunities as it posted a rise in
half-year profit yesterday.
The retailer, which has sold off or
closed a string of underperforming
businesses, including Nicole Farhi,
made a pre-tax profit of 700,000 in
the six months to 31 July, up from
200,000 in the same period last year.
With the business on a stronger
footing, we are in a good position to
expand operations internationally.
We see great opportunities to grow
revenues from both franchising and
licensing, chairman and chief execu-
tive Stephen Marks said.
In its second half the firm will
open in 16 locations across China,
Hong Kong, India, Russia, Korea,
Lebanon and Jordan, taking the total
of franchised stores to over 200 in
more than 20 countries. Over the
next three years the firm plans to
open up to 25 more stores in China
through its joint venture as well as
additional franchise stores in Russia,
India and Turkey.
French Connection, which ended
the period with net cash of 30.9m
and no debt, is paying an interim div-
idend of 0.6p a share, up 20 per cent.
The firms shares dropped 11.4 per
cent yesterday, having jumped 23 per
cent last week ahead of the results.
French Connection boosted
as profits begin to recover
BY JOHN DUNNE
RETAIL
News
Ocado is growing but facing tough challenges including capacity restraints, according to
its chief executive Tim Steiner Picture: REX
ANALYSIS l Ocado Group PLC
p
130
125
120
115
118.40
19 Sept
ANALYST VIEWS: IS OCADOS GROWTH
STRATEGY WORKING ? Interviews by John Dunne
PHILIP DORGAN | PANMURE GORDON

As growth rates slow and returns remain low, it is not appropriate to
value Ocado as another Amazon. Increasingly, we believe that it will be valued
relative to its multichannel competitors. This appears sensible, but it is not sup-
portive of the current share price.
JONATHAN PRITCHARD | ORIEL SECURITIES

The negative forecast momentum continues. Our profit numbers are
now so tiny that any attempt to value the shares by traditional means looks daft.
A sales- based valuation is all that's left to us, but with such volatility and disap-
pointments surrounding this number too. Sell.
CLIVE BLACK | SHORE CAPITAL

We worry about Ocados current performance and development plans.
Until Hatfield is a demonstrably high-performance unit from a financial perspec-
tive, we believe Ocado should abandon its customer fulfilment centre plans for
Warwickshire.
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News
DAIRY CREST AHEAD IN FIRST HALF
DAIRY Crest Group, one of the biggest producers of British milk, said it expected overall
profits for the first half to be slightly ahead of the comparative period last year as selling
price increases offset the impact of input cost pressures. Sales of the groups five top
brands, including Cathedral City and Clover, were up. The company, which makes chilled
dairy foods and milk, said it was confident of meeting expectations for full-year profit.
TESCOS head of clothing in the UK
and Ireland, Richard Jones, has left
the company to join Irish retailer
Dunnes.
Jill Easterbrook will repleace Jones,
who was with Tesco for two years.
Last month the retailer reshuffled
its clothing team, appointing former
M&S director Bernadette Lusher as
buying director for UK clothing.
Tescos head of
clothing jumps
ship to Dunnes
RETAIL
ROYAL Mail is hoping to take on

18,000 extra workers from November
to help cope with the traditional
Christmas rush, in addition to its
130,000 permanent posties.
Last year, the group took on 20,000
staff in its sorting offices at first, plus
3,000 extra workers to cope with dis-
ruption linked to the snow storms in
December.
Royal Mail to
take on 18,000
Xmas workers
CONSUMER
CAREX and St Tropez maker PZ

Cussons said yesterday that trading
over the summer has been in line
with forecasts, with strong cash gen-
eration since June.
But margins continue to be hit by
higher raw material costs and more
special offers, PZ Cussons said ahead
of its annual shareholder meeting,
where all resolutions were passed.
Trading is hard
but improving
at PZ Cussons
CONSUMER
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DAN STEVENS may have commanded
a handsome fee to play Matthew
Crawley in the second series of
Downton Abbey, but he is not above
lending his skills to smaller acting
projects for free.
Earlier this month, Stevens joined
actresses Romola Garai and Imogen
Stubbs to shoot a short film as a
favour to its producer Lucan Toh,
the chief executive of a Dubai-based
corporate services group who is tak-
ing his first steps to become the
next Richard Curtis.
The film, called Babysitting, is the
second short film produced by Toh
with his production partner Oliver
Roskill of Wentworth Entertainment
and his director Sam Hoare. Starring
Garai as Maggie, it tells the story of a
girl struggling through life, whose
troubles take a turn for the worse
when she babysits for her bosss wife
and the family dog dies on her watch.
Toh now plans to take the film to
the Sundance, Venice, Cannes and
Berlin film festivals to persuade
investors to back his film venture
Holland Park Pictures to the tune of
the $1m needed to get his first feature
film off the ground in 2012. It
remains to be seen what the critics
will make of it but well see, Toh told
The Capitalist. We want to progress
slowly but surely in this industry.
ALTERNATIVE FUNDS
HEADS of banks, hedge fund man-
agers and entrepreneurs they all
seek the advice of Britains most
glamorous astrologer Shelley von
Strunckel for business advice.
People would be surprised at the
clients I have on my books, said
Strunckel, whose latest project is
teaching hedge fund managers to
meditate so they remain at the top
of their game all the time. I
strongly suggest meditation is an
essential business tool, continued
the Hollywood-born sage, who had
hedge funders queueing up to
speak to her after dispensing this
advice at the Invest Hedge Fund
Forum at the British Museum.
As professionals realise the old
systems arent working, they are
prepared to explore things that
used to be considered alternative,
Strunckel explained. Look at the
major banks: they had to have
extremely rigid structures and they
havent exactly done too well
MONEY WALKS
FASHION designer Maria Grachvogel
was the youngest-ever person to pass
the City stockbroking exams at 17,
and her finance past came full circle
at this years London Fashion Week,
when Butterfield Private Bank
bankrolled her latest show.
Butterfield employees were thin
on the ground, but Harold Tillman,
the owner of Jaeger and
Aquascutum, came along to cast an
eye on the former James Capel
employees latest collection, joined
on the front row at The Savoy by
models Jerry Hall, Georgia May
Jagger and Yasmin Le Bon.
ARTS INSURANCE
MEANWHILE, Karen Green, the UK
chief of insurance group Aspen,
joined director Stephen Poliakoff at
The Almeida for the press night of his
latest play My City (pictured bottom).
Aspen recently renewed its part-
nership with the theatre for a further
three years, building on its relation-
ship as production sponsor that aims
to ensure continued bold program-
ming, artistic endeavour and risk tak-
ing. With net income of $313m and
total assets of $8.8bn in 2010, the
insurance giant can afford to under-
write the 3.9m required to run the
theatre each year at this difficult
time for the arts, as Green put it.
CNBC CHALLENGE
TRADING is now underway for
CNBCs Million Dollar Portfolio
Challenge and, to mark the occa-
sion, CNBC anchors Stephen
Sedgwick and Geoff Cutmore
declared the markets open at the
London Stock Exchange yesterday.
CNBCs EMEA chief executive Mick
Buckley and head of news and pro-
gramming John Casey also came
along get the trading contest rolling,
while the competitions second prize,
a Maserati GranCabrio Sport, was on
display in Paternoster Square, where
CNBCs Squawk Box presenters broad-
cast their daily show. So everything
still to play for as the trading contest
runs for the next ten weeks see
http://milliondollar.cnbc.com
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Got A Story? Email
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The Capitalist
CITYA.M. 20 SEPTEMBER 2011
Actors Dan
Stevens and
Romola Garai on
set as Spencer
and Maggie
_t lnancl al tl mes, may 2011
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KURDISTAN-focused oil firm Gulf
Keystone Petroleum (GKP) yesterday
said it was considering tapping the
markets to raise capital, confirming
it is considering its options in
response to speculation over the
weekend.
Reports suggested the company
would look to raise up to $200m
(127.5m), though Gulf Keystone did
not confirm the figures yesterday.
The closely-followed oil explorer
said last week that it was planning to
sell a minority stake in one of its oil
blocks in Kurdistan, and announced
plans to move from onto Londons
main market from its current posi-
tion on Aim.
Long the subject of speculation
over its future, GKP was forced to
deny reports at the end of August
that it was in talks to sell, in a deal
that might have valued it at up to
1.4bn.
Whilst there is clearly increasing
interest in the region in which Gulf
Keystone operates, the board is not
in discussions with regard to a sale
of the company, said chief executive
Todd Kozel at the time, adding that
management believed the true value
of the company was significantly
above any of the figures quoted.
Earlier this year GKP posted a loss
after tax of $10.3m for the six
months to June 30.
Shares in Gulf Keystone closed
down 4.13 per cent yesterday at
162.5p, valuing the company at
around 1.3bn.
Gulf Keystone
mulls $200m
equity raising
Gulf Keystone boss Todd Kozel is looking to the markets to raise money
BY ELIZABETH FOURNIER
ENERGY
News
ANALYSIS l Gulf Keystone Petroleum Ltd
p
185
180
175
170
165
162.50
19 Sept
GULF Keystone is being advised on
its planned rights issue by partners
at 192-year old Swiss private bank
Mirabaud Securities, which has field-
ed a team that is being led by Peter
Krens, an equity capital markets
partner at the firm.
Krens worked alongside Arden
Partners as adviser to clean energy
producer Greenko on its 50m share
placing in June this year. He also
helped Irish oil and gas explorer
Petroceltic tap shareholders for
81m in 2010, to fund investment in
its project in Algeria and Italy.
Krens advises a number of other
energy companies including
Hummingbird Resources, Caparo
Energy and Exillon Energy, which he
worked with almost two years ago
on its 62m flotation.
Exillons IPO was the first to be
launched by a Russian company
since the start of the financial crisis,
and valued the group at 186m in
December 2009.
MEET THE ADVISERS
PETER KRENS
MIRABAUD
SECURITIES
US PRIVATE equity house Blackstone
has joined forces with a manufactur-
er to bid for a series of consumer
products being sold by
GlaxoSmithKline (GSK).
Blackstone and Prestige Brands
want to buy nearly 20 brands, such as
sleep aid Nytol, nasal spray Beconase
and Abtei vitamins, minerals and sup-
plements, which the pharmaceuticals
giant has decided are outside its core
business areas.
The products up for sale achieved
revenues of about 500m last year, a
tenth of GSKs consumer healthcare
turnover.
When it announced the sale in
February, the firm said: GSK has
lacked sufficient critical mass in
some product categories and certain
brands have lacked focus due to other
global priorities.
A spokeswoman for GSK told City
A.M. it had received huge interest
from private equity firms and poten-
tial strategic buyers. It is looking at
the second round of bids and hopes to
agree a deal by the end of this year.
Blackstone declined to comment.
Prestige, which is listed on the New
York Stock Exchange and could not be
reached for comment, makes health-
care, personal care and household
products.
Blackstone and
US producer in
Glaxo auction
PRIVATE EQUITY
SIR Michael Spencers IPGL investment

vehicle could be in line for a cash wind-
fall from the sale of its stake
in Aim-listed gaming com-
pany Probability, which yes-
terday revealed it was in
early talks with high-street
bookie William Hill.
Probability was one of
the early benefactors of
the UKs new takeover
rules, which require
company to identify
potential bidder.
Shares in the com-
pany, which develops
gambling platforms
for electronic devices
including smart-
phones, soared more
than 40 per cent during trading yester-
day after it said it is talks with the
worlds biggest bookie.
The companys market cap was boost-
ed from 13m to almost 19m by yester-
days close, after it told the stock market
it was in preliminary discussions with
William Hill which may or may not lead
to an offer for the company.
Spencer (pictured) and his IPGL
vehicle is Probabilitys biggest
shareholder, with 17.7 per cent
of the stock a stake valued
last night at 3.25m.
Probability is chaired
by ex-Butlins head
Graham Parr and run
by founding chief exec-
utive Charles Cohen.
Cohen holds an 8.4 per
cent stake in the compa-
ny, the value of which
was 1.53m yesterday.
Spencer in line for
3.25m as William
Hill circles Probability
GAMING
News
A RAFT of UK acquisition bids could
all be announced on Monday 17
October, after new rules introduced
yesterday shortened the timeframe
for a bidder to make an offer or walk
away.
As part of sweeping changes to
the UKs Takeover Code, offeror
companies will now have to adhere
to a 28-day put-up-or-shut-up
deadline forcing some big name
bidders to speed up their pursuit of
potential targets.
Among the ongoing takeover
talks that must now be completed
within the four-week period are
Ladbrokes approach to
Sportingbet, first confirmed back
in July, and hotel operator MWBs
lingering pursuit of office space
supplier MWB Business Exchange,
also on the table since July.
Ahead of yesterdays 5pm dead-
line that was assigned to deals
already in front of the Takeover
Panel, companies including
Coolabi, Merchant Securities and
Parseq also updated the market on
ongoing talks.
Several prospective buyers were
also outed by the new rules yester-
day, under a new provision which
requires a company to also name its
potential suitor when it receives an
approach.
Canadian travel agency Red Label
was named as being in talks with
Aim-listed online travel group
Travelzest, in relation to a possible
offer for the company...likely to be
solely in cash.
And gaming firm Probability (see
left) said it was in discussion with
bookie William Hill, sending its
shares up by more than 40 per cent.
Clock starts ticking
on UK takeover bids
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TAKEOVER UPDATES: WHAT THE MARKET LEARNT YESTERDAY
Company Update Effect on shares
Alexon Confirmed it is conducting a formal sale process Closed up 5.26 per cent
and is in talks with more than one party, but has been
exempted from requirement to disclose potential bidders
Arena Leisure Still reviewing options including a possible sale, announced after market close
but exempted from the requirement to name a bidder
Central Rand Gold Has rejected all approaches so far, Closed down 15 per cent
but continues to conduct a strategic review
Specialist Energy Group No longer in discussions that could lead to
a sale of the company
Travelzest Confirmed it is in early talks for a cash offer Closed down 1.7 per cent
from Red Label Vacations
Probability Confirmed it is in preliminary talks Closed up 42.86 per cent
with William Hill
announced after market close
GLENCORE boss Ivan Glasenberg has
made another show of confidence in
the commodity trader, buying almost
13.5m of shares to add to his holding
as part of a plan to use his dividend
income to buy more shares.
Glasenberg, who announced last
week he had bought 10m of shares
and would buy more, bought another
3m shares on Friday at 448p each,
according to a regulatory filing yes-
terday.
That puts his stake in the compa-
ny the single largest holding at
around 15.8 per cent.
Glencore shares closed down 3.2
per cent at 440p, in line with a sector
battered by fresh worries over the out-
look for commodities demand.
The shares have traded below the
flotation price of 530p since their
debut in May.
Glencore said on Friday Glasenberg
would use his dividend income to buy
up to a total of 34m of shares, up to
21 September.
Meanwhile, Minara Resources,
Australias second biggest nickel
miner, said shareholders should
accept an A$268m (174m) offer from
Glencore, which last month bid for
the shares it does not already own.
Minara is 73 per cent owned by
Glencore.
Glencore, which dropped its condi-
tions on the offer last week, said last
month it would offer A$0.87 per
share, a 36 per cent premium to the
undisturbed closing price.
Glasenberg
adds to stake
in Glencore
BY HARRY BANKS
MINING
News
Glencore chief executive Ivan Glasenberg has bought 13m of shares Picture: GETTY
CITY VIEWS: WOULD A CHIEF EXECUTIVE BUYING SHARES IN THEIR OWN
COMPANY MAKE YOU MORE LIKELY TO INVEST?
*
Interviews by Phoebe Torrance
Yes. Because it is their own money
being invested then it is obviously for
good reason. The chief executive would
have a lot more to lose if anything
happened to the company.
KATIE HART | JRP UNDERWRITING
If it was a significant number of shares
bought then I would definitely be more like-
ly to invest. The chief executive would
encourage others because it would be a good
indication of how the company is
doing.
CHRIS PARKER | ERNST & YOUNG
I would have thought the chief executive buying shares in his own company would
make you more likely to invest, as he would have more incentive to make sure the
company succeeds.
GARY MILLEN | COOPER GAY
PUTTING THEIR MONEY WHERE THEIR MOUTHS ARE
Jeremy Darroch
Sky chief bought
384,670 worth of
shares, accounting
for almost his entire
after-tax salary of 426,240. (Aug 2011)
Michael Grade
Ocado chair bought
99,000 of shares
on a day when the
firm posted worse-than-expected results.
Now owns 329,110 shares. (Yesterday)
Timon Drakesmith
Hammersons chief
financial officer
bought 50,000
shares in the property developer at
384.99p, costing him 192,500. (Sept 2011)
Richard Goeltz
Aviva non-executive
director bought
10,000 shares at a
price of 307.37p,
costing him 30,700. (Sept 2011)
ANALYSIS l Glencore International PLC
p
450
440
430
420
410
400
437.00
19 Sept
* These views are those of the individuals above and not necessarily those of their company.
A
C
2
2
7
5
3
Think carefully before securing other debts against your home. Your home may be
repossessed if you do not keep up repayments on your mortgage.
first direct credit facilities are subject to status. Rates correct as at 02 September 2011. Because we want to make
sure were doing a good job, we may monitor and/or record our calls. HSBC Bank plc 2011. All Rights Reserved.
first direct 40 Wakefield Road, Leeds LS98 1FD.
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MORE NEWS
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www.cityam.com
Hedge fund Man Group picks star trader Pierre
Lagrange to help realise its Eastern ambitions
STAR trader Pierre Lagrange has
been named chairman of Man Asia
as the hedge fund looks to expand
in the East.
Man, the worlds largest listed
hedge fund, has also hired David
Mercurio from the Government
of Singapore Investment Corp
(GIC), where he was a senior
portfolio manager, as head of
Asia Equity. Both appoint-
ments are to new positions.
Man bought rival GLG
Partners for $1.6bn (1.02bn)
last year in an attempt to
boost its flagging growth.
Yesterday it said Lagrange
will continue to manage
GLGs global long only and
short equity portfolios out
of London. He will spend
one week a month in Asia.
Lagrange said: The
Man transaction
BY PETER EDWARDS
HEDGE FUNDS
cemented our strong presence in

Asia and we intend to evolve this fur-
ther by boosting GLGs investment
management resources locally, com-
plementing our existing investment
teams in London and New York.
Peter Clarke, Man chief executive,
said: We are already extremely well
represented in terms of trading,
sales and distribution in Asia and we
are determined to increase our
investment management capabili-
ties in the region, specifically in
China.
Man Group manages more than
$70bn in assets and a quarter of its
funds under management came
from Asia-Pacific at the end of
March.
Strong demand in Japan for an
open-ended version of Mans flag-
ship computer-driven fund AHL
helped the hedge fund boast
stronger than expected first-quarter
inflows earlier this year.
Lagrange, who recently sold his
London mansion for 90m, hit the
gossip pages last month when he
divorced his wife Catherine and
declared he is gay.
PIERRE LAGRANGE
HOUSEBUILDER Taylor Wimpey said
yesterday that sales rates in recent
weeks have been encouraging, as the
industry has benefited from a sea-
sonal surge in home buying activity.
The FTSE 250-listed firm added it
is on track to deliver on margin tar-
gets this year.
The countrys second largest
builder by market value said net
sales rates so far in the second half
are above last years comparisons,
but noted that the numbers for the
period last year were relatively weak.
Taylor Wimpey said in a statement
ahead of an analyst presentation
that it is on track to deliver a double-
digit operating margin in the UK in
2012.
A bid to cut costs and improve the
product mix lifted Taylor Wimpeys
margins in the first half, beating
analyst expectations and helping
drive profitability.
The firm told analysts that it will
prioritise further margin growth
over an improvement in volumes.
It listed long-term headwinds for
its margin growth as possible
increased regulation on house-
builders and the rising cost of mate-
rials.
However, it said its strategic land
bank of 19,000 gross acres is expect-
ed to boost margins both immediate-
ly and over the long term.
Last week homebuilder Barratt
said it expected to make further
progress in a tough housing market
after reporting a full-year pre-tax
profit at the higher end of expecta-
tions.
The housing industry has been
struggling to pick up since the finan-
cial crisis, with many consumers
reluctant to borrow heavily to buy
property while the important first-
time buyer market has been shut-
down by high-deposit requirements
from mortgage lenders.
INDUSTRIAL group HellermannTyton
is no closer to a sale despite its private
equity owner appointing advisers last
year.
Doughty Hanson, which bought
the cable clip and fixing manufactur-
er from telecommunications firm
Spirent for 303m in 2006, is believed
to have asked UBS to consider its dis-
posal options.
No deal is imminent but City A.M.
understands management is untrou-
bled by this, with first half sales up 20
per cent this year.
The group turned over 413mn
(359.5m) last year, representing a 19
per cent growth since 2006. Profits
have grown over the same period.
The UK arm of HellermannTyton,
based in Manchester, was in February
named as one of the UKs private
equity-backed firms with the fastest-
growing profits. Figures published
late last week, however, showed it
made an operating loss of 637,000,
driven in part by foreign exchange
losses, compared to a 3.38m surplus
in 2009. Turnover rose 24 per cent to
46.93m.
Doughty Hanson, which declined
to comment, reportedly put a 700m
to 800m price tag on the
HellermannTyton group last year.
Potential bidders for the firm,
which has nearly 3,000 staff around
the world, have been tipped as
Hubbell and Illinois Tool Works and
private equity houses Bridgepoint
and Montagu.
HellermannTyton growing as private
equity parent ponders exit strategy
BOUTIQUE investment bank Shore
Capital may make more acquisitions
after reporting an increase in first-
half revenue.
The Aim-listed bank said revenue
rose 12 per cent to 20.44m while pre-
tax profit dipped 17 per cent to
3.86m.
Last year Shore Capital spent
2.885m (2.5m) on a controlling
stake in Spectrum Investments, a
vehicle for buying a majority share of
Deutsche Breitband Dienste, a
German telecoms business.
When asked about potential acqui-
sitions executive chairman Howard
Shore told City A.M.: The conditions
are tough but do provide opportuni-
ties.
We want to, on a targeted basis, do
more deals like [Spectrum] but dont
have a target spending amount... I
dont think money should ever burn
a hole in your pocket.
Shore held its interim dividend at
0.25p per share.
Investment bank Shore
ready to do more deals
BANKING
THE global debt crisis has a long way

to run but has created an opportunity
for investors to be greedy, the chief
executive of Britains largest invest-
ment trust said yesterday.
Katherine Garrett-Cox of Alliance
Trust, which runs 2.9bn of assets,
criticised the bailout botox policy
adopted in Europe, and said delever-
aging would be a painful process.
She told City A.M., however, that the
crisis created a buying opportunity.
We are bearish on the macro pic-
ture but bullish on the micro picture.
Warren Buffett said you have to be
greedy when everybody else is fearful.
If you follow the herd and act like a
sheep your rewards will get diluted.
She was speaking as Dundee-based
Alliance, which defeated a resolution
from rebel investor Laxey Partners in
May to set up an automatic buyback
policy aimed at boosting its share
value, reported its results for the six
months to the end of July.
It reduced its exposure to equities
its core asset class to 95 per cent of
net assets at the end of July, from 99
per cent in June. It is now focusing on
firms less exposed to Asia and the
economic cycle. Alliance has reduced
holdings in Informa, miner Xstrata
and HSBC and bought higher-yielding
firms with more reliable levels of
demand such as publisher Pearson,
National Grid and BG Group
UK equities were its largest asset
class at the end of July at 31.6 per
cent while North America stood at
24.5 per cent. European interests
make up 12 per cent.
Alliances share price rose 3.1 per
cent in the six months to July, while
its net asset value per share climbed
0.7 per cent. It said third-party assets
at its asset management arm have
grown by almost 50 per cent to
123m since the start of the year.
Alliance sees opportunity in crisis
BY PETER EDWARDS
FUND MANAGEMENT
Rise in Taylor
Wimpey sales
lifts margins
BY HARRY BANKS
PROPERTY
BY PETER EDWARDS
PRIVATE EQUITY
News
Alliance CEO Katherine Garrett-Cox said the crisis created a buying opportunity Picture: REX
ANALYSIS l Taylor Wimpey PLC
p
34
33
32
31
30
29
33.12
19 Sept
THE HERON Tower on Bishopsgate
has signed up four new tenants,
though the 230m-tall skyscraper
remains two-thirds empty six
months after completion.
Developer Heron International
said yesterday that investment man-
ager Partners Group, forex broker
City Credit Capital, derivatives trad-
er Chicago Trading Company and
Snoras, a Lithuanian bank, have
agreed to take space in the tower.
The companies will join serviced
office provider Landmark and US
law firm McDermott, Will & Emery
in the 46-storey tower, alongside sev-
eral bars and restaurants.
Interest in the development
remains strong and we look for-
ward to announcing further let-
tings in due course, said Peter
Ferrari, managing director of prop-
erty development at Heron
International.
The company, run by real estate
tycoon Gerald Ronson, is marketing
the tower in stages, with the more
lucrative top offices above the 20th
floor still not officially on the mar-
ket.
CBRE and Cushman & Wakefield
are the lettings agents for Heron
Tower. Adams Burnett acted for
Partners Group; Colliers acted for
City Credit Capital; Jones Lang
LaSalle acted for Chicago Trading
Company; and Mellersh & Harding
acted for Snoras.
PROPERTY
Heron Tower notches up more

tenants but most floors empty
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Introduction by City AM Editor, Allister Heath
PETRA Diamonds expects rough dia-
mond prices to remain volatile for the
remainder of this year as a result of
recent economic uncertainty, the
Africa-focused miner said as it posted
a 5.4 per cent fall in core full-year prof-
it.
Earnings before interest tax depre-
ciation and amortisation dipped to
$67.1m (42.6m) missing the consen-
sus of $74.5m, for the year to end-June.
Lower production outweighed high-
er rough diamond prices that had
risen steadily from last October to
highs in June. It already announced
that revenue rose 24 per cent in the
year.
Petras shares closed up one per
cent at 125.50p yesterday.
It completed the acquisition of a 74-
per cent interest in the Finsch mine,
South Africas second-largest mine by
output, last week. The mine is expect-
ed to add at least 1m carats to produc-
tion for the current financial year.
We expect to see some growth on
the current portfolio, chief executive
Johan Dippenaar said yesterday
adding that Petra expects to produce
2.1m to 2.3m carats overall in the cur-
rent financial year, up from 1.12m in
2011.
Petra, which has seven producing
mines in South Africa and one in
Tanzania, expects to produce about
4m carats by 2014 and more than 5m
carats a year by 2019.
The companys main drivers are the
Cullinan, home to the largest gem ever
found, and Finsch mines.
Petra warns
of volatility in
diamond price
ITALIAN fashion house Prada posted
a 74 per cent rise in first-half profit
yesterday, beating the forecast in its
June listing prospectus, and said it
would stick to its plan for opening
new stores.
Milan-based Prada, a maker of lux-
ury bags and Miu Miu dresses, said
group net profit totalled 180m
(156.6m) in the six months to the
end of July, compared with a forecast
for 151m in its listing prospectus.
Prada, which listed in Hong Kong
in June, said turnover rose 21 per
cent to 1.134bn.
The firm credited soaring sales in
Asia, and China in particular, for the
strong performance.
We are continuing exactly what
we planned in terms of investments,
particularly new openings of shops,
deputy chairman Carlo Mazzi said.
We are in the luxury goods mar-
kets and not in the mid-market.
Usually this segment of the market
is less hit by the crisis, he added.
Its stock ended down 3.7 per cent
at HK$41.30 yesterday, compared
with a 2.8 per cent fall by the Hang
Seng Index.
Prada and shareholders Prada
Holding and Intesa Sanpaolo sold
423m shares in Junes offering, rais-
ing HK$16.7bn (1.37bn).
Prada profits
jump 74 pc on
high Asia sales
Prada has delivered a half-year net profit of 180m in its first results since listing
BY HARRY BANKS
MINING
CONSUMER
News
ANALYSIS l Petra Diamonds
p
127.50
122.50
117.50
125.50
19 Sept
News
BUSINESS leaders throughout the
world hold an extremely gloomy out-
look for the near future, a survey has
revealed this morning.
Seven in 10 senior business workers
say it is very likely or somewhat
likely that a global economic reces-
sion will arrive in the coming
months, according to research by the
Harvard Business Review.
Europes ongoing troubles domi-
nate the respondents concerns, with
over a third (34.5 per cent) expecting
the continents economy to expand
by less than one per cent this year.
Even next year, Europes economy
will fail to surpass 1.4 per cent
growth, according to 57 per cent of
those surveyed.
Business leaders are similarly
downbeat over their own firms
prospects.
Slightly more than half believe
their companies will achieve revenue
targets for 2011, but a significant por-
tion -- at least a quarter of all respon-
dents -- expect to miss the mark, the
report said.
This translates into flat or dimin-
ished hiring expectations for most of
those surveyed, with the exception of
a significant minority, mostly in Asia,
who believe hiring will go up for their
firms this year.
Asias emerging economies are
hotly tipped to compete for the posi-
tion of global economic leader in 10
years from now; over half (52.1 per
cent) expect China to take the posi-
tion, while 16.1 per cent think that
Indians economy will become num-
ber one.
But some business leaders ques-
tioned whether their economic poli-
cies and internal structures would be
able to sustain them.
America is still perceived as the
most innovative country in the world,
according to nearly half the respon-
dents (46.3 per cent). China was in sec-
ond place, yet only one in 10 business
leaders considered it the most innova-
tive country in the world.
HIGH government spending deficits
and the credit-fuelled boom left
many wealthy countries particularly
vulnerable to the financial crisis, a
leading economist said in London
yesterday.
In contrast, some emerging
economies avoided the credit boom
and had budget surpluses at the
time of the crunch, subsequently
coping better with the economic cri-
sis, Professor Maurice Obstfeld of
the University of California at
Berkeley said.
Obstfelds comments followed a
colourful comparison of the finan-
cial crisis with the sinking of the
Titanic, made by Indian central
bank deputy governor Subir Gokarn.
Speaking at the International
Growth Centres Growth Week,
which runs until tomorrow, Gokarn
said that economists failed to fore-
see the potential severity of the
crash.
Policy-makers had buffers and
safety plans in place, just like the
Titanic, Gokarn said. Yet the
chances of experiencing such as
strong shock had been considered
all but impossible.
Back home, Indian stocks took a
hit on rumours that Gokarns cen-
tral bank is planning further mone-
tary tightening.
Last week the Bank raised its
repurchase rate yet again. Inflation
in India continues to soar, touching
nearly 10 per cent.
Debt-ridden and credit-fuelling states
made crisis worse, top economist says
AUSTRALIAS Qantas Airways has can-
celled 28 flights scheduled for today
due to a planned four-hour strike by
ground staff, which the airline said
will affect more than 6,100 passengers.
Qantas said in a statement yesterday
it expected a further 27 flights to be
delayed by up to 35 minutes and
warned passengers of further disrup-
tions over the next two days.
The Transport Workers Union,
which represents baggage handlers
and catering staff, called the strike
action due to a dispute over pay and in
opposition to planned domestic job
cuts as the airline expands in Asia.
The strike would occur at all major
Australian airports, the union said.
Aircraft engineers were also plan-
ning separate strike action today that
would affect more than 800 passen-
gers, according to local media.
Qantas shares were trading 2.2 per
cent lower at A$1.56 yesterday morn-
ing, underperforming the wider mar-
ket which fell 1.8 per cent.
Qantas says thousands hit
by strike over pay and jobs
TRANSPORT
SCRAPPING the default retirement

age could lead to old workers staying
on and fewer young people being able
to take their vacancies, according to
figures from Norton Rose, released
ahead of a report set to be published
on 3 October.
Almost half of respondents 46 per
cent told the law firm the lack of
mandatory retirement age will nega-
tively impact their business, while 22
per cent confirmed they will have less
capacity to take on younger workers.
Firms are reacting poorly to the
changes, according to the firm.
Employers are failing to negate the
impact of the change on their ability
to provide opportunities to younger
workers. Too many are holding firm to
rather blunt solutions 19 per cent
are singling out older employees to
talk about retirement and 11 per cent
are taking legal advice on whether
they can simply force older employees
out, said Norton Roses Paul Griffin.
If employers want to ensure they
stay on the right side of the law when
it comes to retirement without harm-
ing their ability to take on younger
workers, they need to find more
thoughtful solutions.
...but no set OAP age may hurt young
EMPLOYMENT
DIVERSIFIED manufacturer Tyco

International is moving to separate its
businesses into three independent
publicly traded companies, becoming
the latest US conglomerate to do so.
Investors cheered the move and
drove the companys shares up nine
per cent in pre-market trade yesterday.
Consumer companies Kraft Foods,
Ralcorp Holdings, finance-to-educa-
tion conglomerate McGraw-Hill and
energy giant ConocoPhillips have
announced plans to split their busi-
ness as conglomerates are falling out
of favour with investors.
Tyco said its shareholders would
own a 100 per cent stake in each of the
three companies: ADT North America
residential security business, flow con-
trol products and services and the fire
and security business.
The new standalone companies
will have greater flexibility to pursue
their own focused strategies for
growth -- both organic and through
acquisitions -- than they would under
Tycos current corporate structure,
Tyco chief Ed Breen said.
Tyco expects the transaction to be
completed in about 12 months.
It also sees one-off transaction costs
of about $700m (446.3m), mainly for
debt refinancing, separation and
restructuring costs.
The three entities together are ini-
tially expected to pay a dividend
roughly equal in sum to Tycos current
dividend.
The first company, ADT North
America residential business, which
provides security and fire alarm sys-
tems in North America to over six mil-
lion residential homes and small
businesses, would have an annual rev-
enue of about $3bn and 16,000
employees.
Tyco divides itself into three
BY HARRY BANKS
INDUSTRY
Businesses
gloomy over
euro troubles
BY JULIAN HARRIS
WORLD ECONOMY
BY JULIAN HARRIS
WORLD ECONOMY
WE ARE BOOSTING YOUTH EMPLOYMENT, CLAIM RETAILERS...

BRITISH shops are
boosting youth
employment, with
more than four in
10 new retail jobs
going to people
aged between 16
and 21. And
around 40 per cent
of 16 to 19 year
olds with jobs are
employed in the
sector, the British
Retail Consortium
(BRC) will argue at
the Liberal
Democrat confer-
ence today.
Picture: REX
NEWS | IN BRIEF
Scottish jobs growth slowing
Employment prospects north of the bor-
der continued to improve in August,
despite a slower growth in vacancies
than seen the previous month. Both per-
manent and temporary jobs growth was
recorded in the latest Bank of Scotland
labour market barometer, released yes-
terday. The survey recorded a score of
53.9 in August its lowest since March,
yet still an indication of growth.
Construction up in Eurozone
Eurostat figures yesterday showed
growth of 1.4 per cent month-on-month
in the Eurozone construction sector.
That compares to a decline in output of
1.3 per cent over June. Fluctuations in
output over the year mean the construc-
tion sector expanded by 1.2 per cent over
the year to July. The picture was even
less rosy in the EU as a whole: construc-
tion across the 27 member nations
increased by just 0.2 per cent in the
twelve months to July. On an annual
basis Poland, Romania and Spain
improved most, at 17.4 per cent, 14.4 per
cent and 12.5 per cent respectively.
US housing confidence flatlines
Builders confidence remained low as the
economic outlook worsened and credit
conditions failed to improve, according to
the National Association of Home
Builders (NAHB) housing market index.
Numbers over 50 show more US builders
believe conditions are good than poor.
The index fell to just 14 in September,
and has hovered between 13 and 16 for
the past six months.
ECONOMICS
SANY Heavy Industry, Chinas largest
construction machinery maker, aims
to raise up to HK$26bn (2.1bn) in
what could be Hong Kongs second-
biggest stock offering this year, as it
defies volatile markets to fund an
expansion.
Sany Heavys offering is one of sev-
eral deals that are pushing through
Hong Kongs narrowing initial public
offering window, with most stock
market sales pulled or on hold until
markets steady across the globe.
The company, controlled by Chinas
richest man, Liang Wengen, is offer-
ing 1.34bn shares for HK$16.13 to
HK$19.38 each, putting the total offer
value at up to HK$25.97bn.
The sale would be the biggest since
commodities trader Glencore raised
nearly $10bn in a dual listing in Hong
Kong and London in May and would
top a $2.5bn initial public offering by
luxury goods maker Prada in June.
Selling H-shares would help Sany
build its international branding and
would play an important role in accel-
erating its exports and international
expansion, said Zou Runfang, analyst
at China Galaxy Securities.
However, the current market senti-
ment may hurt demand for its H-
shares in the short term.
Sany, often referred to as Chinas
Caterpillar, and rival XCMG
Construction Machinery have benefit-
ed from Chinas construction boom in
recent years.
Sany Heavy to
launch Hong
Kong listing
MALAYSIAS national oil company
Petronas said yesterday it will sell the
oil production business of its UK sub-
sidiary Star Energy Group to IGas
Energy for 110m.
This is part of its strategy to focus on
growing its European asset returns
through marketing and trading,
Petronas said in a statement.
In 2011, Star Energy is expected to
produce an estimated 2,800 barrels of
oil equivalent per day, it said.
Petronas also entered into a long-
term gas supply agreement with IGas
Energy through its London-based sub-
sidiary Petronas Energy Trading to
take up to 150bn cubic feet of natural
gas produced by IGas Energy.
IGas Aim-listed shares jumped 5.8
per cent yesterday.
The firm, which has a market cap of
81m, financed the deal using a new
loan facility from Macquarie Bank.
IGas Energy splashes out
110m on Petronas assets
IGas, run by chief exec Andrew Austin, has bought Star Energys oil production assets
BY HARRY BANKS
INDUSTRIAL
News
BY HARRY BANKS
ENERGY
23
ANALYSIS l Sany Heavy Industry
CNY
15.20
15.00
14.80
14.86
19 Sept
NEWS | IN BRIEF
DS Smith sells another paper mill
Office products manufacturer DS Smith
announced yesterday that its paper busi-
ness is selling one of its UK paper mills to
Asia File Corporation Berhad for 4.6m.
The mill, located in Devon, produces edu-
cational and filing papers and makes
34,000 tonnes of paper each year. Earlier
this year DS Smith said it was closing its
larger Hollins paper mill, which produces
95,000 tonnes per year.
Capita Group buys Vertex arm
The Capita Group said yesterday that it
had agreed to buy Vertex Private Sector, a
subsidiary of outsourcing provider Vertex
Group. Capita will pay 40.5m for the
business, which will affect more than
1,500 jobs in the UK and India. Vertex
Private Sector is a contact centre-focused
outsourcing business, which is particularly
strong in the retail, utilities and telecom-
munications markets. Capita said the
acquisition would enhance its customer
service capabilities, after it bought call
centre specialist Ventura earlier this year.
UK mobile broadband disappoints
British consumers want more information
and transparency from mobile broadband
operators even though their overall satis-
faction with providers has improved
slightly from last year, a survey by Acision
and YouGov showed yesterday. "Seventy
per cent of those questioned stated that
they would like to be notified in real-time
about network congestion, while another
71 per cent wanted to be notified about
large download sizes, which may impact
their data usage," the study found. Almost
three quarters said they wanted the
option to delay application updates to a
time when downloads were free or less
expensive, the report also revealed.
News
Paul Hastings
Matthew Poxon has joined the law firm
as an associate in the corporate prac-
tice of the firms London office. Poxon,
who moves from Slaughter & May, will
advise on a range of corporate and
commercial transactions, including
public and private mergers, equity cap-
ital markets and joint ventures.
Globo
Barry Michael Ariko, a former non-
executive director of Autonomy, has
joined the board of the Aim-listed
mobile solutions and IT company as a
non-executive chairman. He replaces
Brett Miller, who has stepped down
from the role to spend more time on
his other business interests.
Caithness Petroleum
The privately owned exploration and
production company has appointed
Peter de Wit, who recently retired as
chairman of Shell Netherlands, as a
non-executive director.
St Jamess Place
The wealth management group has
appointed Iain Cornish as an independ-
ent non-executive director, effective
from 1 October. Cornish is chief execu-
tive of the Yorkshire Building Society,
and is due to step down by the end of
the year after announcing his resigna-
tion in February.
BDO Corporate Finance
The business adviser has hired Jason
Peers as senior adviser in the Middle
East corporate finance practice, based
in Dubai. Peers, who has advised on
capital raising and financing in the
Middle East for 20 years, will contin-
ue his role as special representative of
UK trade & investment for the
Kingdom of Saudi Arabia financial
services sector.
Matrix Asset Management
The fund manager has hired Rebecca
Ledlie as head of product and market-
ing. Ledlie joins from Gartmore, where
as head of product she developed the
firms range of hedge funds, offshore
and onshore fund ranges, and segre-
gated accounts.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
Mooted deal gives
late lift to stocks
U
S stocks fell yesterday but
staged a late comeback after
fears of a looming Greek debt
default diminished on news of
a possible deal to advance new
bailout funds to Greece.
Stocks spent most of the session
sharply lower after European leaders
disappointed investors by failing to
come up with any new solutions to
the Eurozones sovereign debt crisis
over the weekend.
However, a Greek finance ministry
official said after talks yesterday with
the European Union and
International Monetary Fund that the
country was near an agreement with
international lenders to continue
receiving money.
For the time being it looks as
though there is hope the conversa-
tion is going to take on a more posi-
tive and constructive tone, said Peter
Kenny, managing director at Knight
Capital.
Energy and financial stocks were
among the worst performers of the
session. The PHLX oil service sector
index dropped 1.7 per cent as oil
prices settled down 2.6 per cent to
$85.70 on demand worries.
The KBW bank index fell 2.8 per
cent following a steep decline in
European banks on worries Eurozone
leaders wont be able to prevent debt-
stricken Greece from sliding into
default. Citigroup slipped 4.4 per cent
to $27.71.
International lenders told Greece
yesterday it must shrink its public sec-
tor and improve tax collection to
avoid default within weeks as
investors, unnerved by political set-
backs in Europe dumped risky Euro
zone assets.
The US Federal Reserve will begin a
two-day meeting today and is poised
to increase downward pressure on
longer-term interest rates this week in
a bid to accelerate a sputtering US
recovery.
Its the Greece thing and the Fed
meeting this week. Weve seen a lot of
write-up on this Operation Twist, a lot
of it may be baked in, said Terry
Morris, senior equity manager for
National Penn Investors Trust
Company in Reading, Pennsylvania.
The Dow Jones industrial average
dropped 108.08 points, or 0.94 per
cent, to 11,401.01. The Standard &
Poors 500 Index lost 11.92 points, or
0.98 per cent, to 1,204.09. The Nasdaq
Composite Index edged down 9.48
points, or 0.36 per cent, to 2,612.83.
In the twist operation, traders
expect the Fed to try to stimulate
growth by pushing down longer-term
debt yields by buying bonds and sell-
ing short-term debt. A Fed statement
is expected tomorrow.
B
RITAINS leading shares erased
much of last weeks gain after
concern Greece will baulk at
the austerity cuts needed to
secure fresh bailout cash, and instead
nosedive into a disorderly default,
prompted a flight from risk.
Banks were among the worst-hit
sectors yesterday as international
lenders ratcheted up the pressure on
Athens, saying it must cut the size of
the public sector and increase tax col-
lection to avert a near-term default.
Its certainly been a tough start to
the new trading week with markets
selling off hard across the board,
amidst these resurgent fears that the
Greek default could now be immi-
nent, said Ben Critchley, sales trader
at IG Index.
The three big sectors banks,
energy and miners have collectively
taken almost 70 points off the FTSE
100, underlining just how tragic a
Greek default will be to the global
economy as a whole.
A conference call between Greece,
the European Union and the
International Monetary Fund at 4pm
yesterday was to be followed by a
meeting of the Greek cabinet to dis-
cuss the cuts.
Even should a default be avoided in
October, however, credit markets are
pricing in a 90 per cent chance of an
eventual Greek default, while a
recent poll of economists put the like-
lihood at 65 per cent.
In one form or another there is a
high probability of a Greek default,
but the question then is how will it be
structured? What would be the conse-
quence for the Eurozone and what
burden does it mean for the other
countries? said Alexei Jourovski,
head of equities at Swiss asset manag-
er Unigestion, which manages
$12.4bn in assets.
Adding to the bearish sentiment
was yet more evidence over the week-
end of the political discord surround-
ing the crisis, after Germanys ruling
coalition lost another regional elec-
tion and a meeting of Eurozone
finance ministers brought no fresh
policy developments and evidence of
disagreement with the United States.
The market jitters weighed on
banks with Barclays, among the most
exposed to the periphery states, down
6.5 per cent. Lloyds Banking Group
fell sharply, down 6.7 per cent, as the
surprise resignation of its finance
director also weighed.
Shared risk in the event of a Greek
default and little opportunity to
diversify within the sector, even for
UK banks, which are outside the euro
zone, meant Jourovski was cautious
on equities generally and sharply
underweight banks.
A Greek default would likely mean
a CDS credit event which would nor-
mally trigger some form of settle-
ment. The consequences of this are
not clear and while the UK banks are
less exposed directly, there could be
large collateral damage.
The FTSE 100 index closed down
two per cent, or 108.85 points, at
5,259.56. It is down 2.5 per cent so far
in September and 10.9 per cent year-
to-date.
Commodity issues vied with banks
on the blue-chip loserboard, after
concerns about the debt crisis and
weakening growth across the devel-
oped world prompted hefty falls for
industrial metals such as copper,
down nearly four per cent.
As a result, base metals-focused
miners including Antofagasta,
Kazakhmys and Xstrata whose met-
als are used heavily in construction
and industry all fell between 6.8 per
cent and 8.2 per cent by the close of
trading.
FTSE slumps as Greek default
fears spark a flight from risk
THELONDON
REPORT
THENEW YORK
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Associated British Foods
1,100
1,050
950
1,000
Jul Aug Sep
p
1,099.00
19 Sept
ASSOCIATED BRITISH FOODS
UBS upgrades the Primark owner to a buy and ups its target price on the
stock by six per cent to 1200p, to reflect increased estimates. The broker
makes no change to its full year guidance for 2011 of flattish earnings, but
raises 2012 estimates by three per cent to put earning per share at an esti-
mated 87p. UBS says double digit earnings growth next year is well under-
pinned by easy comparatives, and better pricing in its sugar business.
ANALYSIS l Close Brothers
800
750
700
650
Jul Aug Sep
p
690.50
19 Sept
CLOSE BROTHERS
JP Morgan rates the corporate finance house as overweight with a target
price of 682p, after it announced the sale of its 49.9 per cent stake in Mako, a
market maker in exchange traded derivatives. The broker sees this as a sensi-
ble disposal, depsite the limited financial effect, and says it will get more
attention than otherwise in the wake of the UBS derivatives trading loss.
Mako contributed 2.6m of post-tax income to Close in the year to July 2011.
ANALYSIS l Intercontinental Hotels
1,300
1,100
Jul Aug Sep
p
1,062.00
19 Sept
INTERCONTINENTAL HOTELS GROUP
Morgan Stanley rates the hotel group as overweight and lowers its target
price to 14 from 16.50. IHG is the brokers top pick among hotel stocks, as
it favours the groups fee-based model, large pipeline and commitment to sell
real estate, as well as its discount compared to its US peers. Morgan Stanley
reduces its revenue per available room for 2012 from + 6-8 per cent to +2 per
cent, and drops its earnings per share forecast by 10 per cent.
20Jun 08Jul 28Jul 7Sep 17Aug
6,200
5,400
5,000
5,800
ANALYSIS l FTSE
5259.56
19 Sept
Britvic
Simon Litherland has been appointed as manag-
ing director of Britvic Soft Drinks, and a mem-
ber of the group executive committee, effective
from 4 October. Litherland joins from Diageo,
where he was MD of the GB business, responsi-
ble for brands including Guinness, Smirnoff and
Johnnie Walker. Litherland started at Diageo as
finance director in European operations, before
rising to management positions in Eastern
Europe, Dublin and South Africa.
A
S European banking shares contin-
ue to take a knock, it is clear that
the fortunes of many of Europes
major banks are inextricably linked
with the fortunes of the Eurozone. Should
a Eurozone country default on its debt obli-
gations, it is likely that it will take a
number of banks down with it namely
those with unmanageable levels of periph-
ery debt holdings.
As a result, CFD traders should play close
attention to European policy squabbles
when taking a position on one of the num-
ber of European banks that seem partially
at risk.
Investors probably feel like theyve been
bashed around in a boxing ring over the
past few weeks, as the markets have swung
within a narrow trading range between
highs and lows, says Angus Campbell,
head of sales for Capital CFDs. Each time
we look like a move to the upside is immi-
nent were beaten down again while moves
to the downside are also limited.
Ironically, wrangling over the proposed
increase of the European Financial Stability
Facility (EFSF) has done nothing to help sta-
bility in the European equities market. The
scheme leans heavily on Germany bearing
the brunt of the contribution the IFO
Institute estimates that if the measures are
CFD traders should
pay close attention to
EFSF wranglings,
writes Craig Drake
A severing of the Eurozone Gordian knot is a long way off
Wealth Management| Contracts for Difference
25
The entwined fortunes
of Greece and EU banks
G
LOBAL equity markets rallied sharply last week. The
initial catalyst came from rumours that China stood
ready to purchase Italian debt. Then stocks shrugged
off worries about the credit-worthiness of the largest
French banks, after German Chancellor Merkel and French
President Sarkozy insisted that Greece will remain a member
of the Eurozone. Greek Prime Minister Papandreou also
promised further austerity measures.
The buying gathered momentum as short-sellers rushed
to cover their positions. This was despite Chinese Premier
Wen Jiabao warning that there were limits to Chinas gen-
erosity, while urging Europe to get its house in order.
Bullish sentiment got an additional boost after the ECB
announced a coordinated central bank move to provide a
series of 3-month US dollar liquidity operations. This will
take the pressure off European banks that have had trouble
borrowing US dollars. However, the move is also an admis-
sion of the problems at the heart of the European banking
system.
There was a souring of sentiment over the weekend as
the meeting of European finance ministers proved to be a
damp squib. In addition, US Treasury secretary Geithner
was effectively told to go home and put his own house in
order before lecturing Europe. Merkels party lost another
regional election and there is a nagging feeling that the
Eurozone is preparing for a Greek default. The FTSE 100
reversed sharply from resistance at 5,390/5,400, the 38.2
per cent Fibonacci retracement of the March 2003 to
October 2007 rally. Both the German Dax and the US S&P
500 have failed to build on breaks above significant resist-
ance at 5,600 and 1,208 respectively.
The two-day FOMC meeting ends on 21 September.
While worries of a Greek default are currently keeping a lid
on stock prices, it looks as if investors have priced in addi-
tional stimulus measures from the Federal Reserve. At the
very least, the expectation is that the Fed will cut the rate
paid on bank reserves to stimulate bank lending and/or sell
shorter duration debt and use the proceeds to buy longer-
dated bonds. This should lower long-term rates further, and
so reduce borrowing costs for companies and individuals.
But there is also a possibility that the FOMC will announce
further asset purchases. The problem is trying to assess if
additional quantitative easing is priced in to equities or not.
RALLIES TURN
TO DECLINES
AHEAD OF FED
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
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is authorised and regulated by the Financial Services Authority. CD03UK.165.091411
passed then Germanys liability could
reach 465bn.
And even if the measures were to go
through, many believe that it will still be
too small to credibly bailout peripheral
Eurozone countries (see chart, below right).
But taking a short position on banking
stocks is not the only option for CFD
traders. Many have drawn comparison
between the implosion of Lehman Brothers
and the current trajectory of a number of
French banks (see European bank
exposure, below left). But while US author-
ities have occasionally allowed a toxic bank
to fail, it is unlikely that France would do
the same. As such, those with a strong
stomach could take a position on a failing
bank when a bailout seems imminent, hop-
ing for a bounce when the measure was
announced.
Ireland Portugal Greece Spain Italy EFSF
1,800
1,400
1,000
600
200
ANALYSIS l Outstanding debt and EFSF spending capacity
bn
Souce: Bloomberg, Coutts
France
Italy
Austria
Germany
Portugal
Netherlands
UK
US
ANALYSIS l European bank exposure to Greece
Souce: Reuters
56.9
$bn
23.8
14.7
10.2
8.7
5.2
4.5
3.3
Gold traders
need to tread
with caution
Even in bull markets volatility makes
trading difficult, writes Philip Salter
E
UROPES central banks are back
on the yellow metal, after two
decades of shunning the bar-
barous relic. They are late to the
table traders have been making
money going long on gold for years.
There are still profits to be made, but
in volatile markets timing is every-
thing. Leveraged traders will have to
act nimbly, as yesterdays dip showed.
GOOD AS GOLD
Central banks in Europe are, on
aggregate, now net buyers of gold, fol-
lowing two decades of selling it
against its long-term bull trend. This
extra 25,000 ounces of gold sitting in
the vaults of Europes central banks
isnt moving markets, but its crucial
for showing changing sentiments. For
Europes central bankers, buying gold
is a hedge against their own inability
to solve the Eurozone crisis its a
wonder it took them so long to put on
the bet.
Yesterday gold dropped $59 from a
high of $1,828/oz to a low of $1,770,
but we are still in a bull market.
Michael Hewson of CMC Markets says
even a collapse to $1,600 wouldnt
change this, while David Jones of IG
Markets says it would take a slide
though $1,500 to even start suggest-
ing this trend was in trouble.
MARKET INTERVENTIONS
One question troubling many traders
is why gold didnt go stratospheric fol-
lowing the Swiss National Banks
intervention to keep the Swiss franc
below 1.20. Ian OSullivan of Spread
Co thinks some of the violent falls in
gold may be related to hedge funds
and investment houses having to liq-
uidate long gold positions to fund
margin calls and losses on Swiss franc
bets. Carl Astorri, global head of eco-
nomics and asset strategy at Coutts,
notes lots of funds have been trading
the positive correlation between
Swiss franc and gold, which is based
on the near 70 per cent backing of the
Swissie by gold. As such, when the
central bank started to intervene and
push down the Swissie, Astorri says,
correlation models assumed gold
would fall as well. However, Hewson
thinks gold didnt take off because of
fears that the margins on gold would
be raised. The Chicago Mercantile
Exchange (CME) has recently tripped
up traders twice by raising the
requirements on gold futures.
TIMING IS EVERYTHING
Angus Campbell of London Capital
Group is also bullish on gold, noting
that it remains well supported
adjusted for inflation it is still
nowhere near its nominal high hit
back in the 1980s with many traders
expecting it to hit the targeting
$2,400. However, Campbell also
points out even though the longer
term uptrend might still be intact,
any long position could be subject to
a costly correction to the downside,
even if it is a small one in percentage
terms.
Yesterdays pullback is illustrative
of the volatility risks and the useful-
ness of charts. Campbell noted the
formation of a double-top on yester-
days daily chart, prior to the dip.
Despite these risks, traders taking
due attention to short-term trends
and lucky enough to avoid any
changes to the margin requirements
on gold futures, could profit by buy-
ing in after the dips the fundamen-
tals of global debt still point strongly
to a continued bull market.
A solid long-term bet
Picture: REX
Wealth Management | Contracts for Difference
THE TIPSTER
BULLS PUSH
XTRATA ALONG
place since February, but if it
manages to get back above 168p
it could continue to the 180p
level. Spread Co offers a spread
on Barclays of 155.66p-156.05p.
Recent coverage by RBS bro-
kers of Tui Travel states that
misconceptions about the tour
operator business, alongside gen-
eral market volatility, means that
shares in the travel company
have received an unnecessary
thrashing and now look cheap. So
will its pre-close trading update
on Thursday ignite the bulls and
boost the company back to 52-
week highs that we saw in
January? Capital Spreads quotes
a price of 151.0p-151.6p
Wheat for December delivery
has seen a sharp decline since the
start of the month to its lowest
level last seen 9 August. In line
with other soft commodities, it
could be a sign that the Eurozone
debt crisis will curb demand.
Capital Spreads quotes Wheat
December at 681-682.
Craig Drake
O
N the daily chart, Xstrata
looks to be forming a bear
flag which could be a signal
for the next move lower.
However, the bulls have done well
to keep the stock supported around
the 10 level as recently any dip
below here has led to a bout of buy-
ing pushing it higher. Capital
Spreads quotes 986.1p-988.0p for
Xstrata.
Barclays shares struggled again
on Monday, with the ongoing sov-
ereign debt issues still weighing on
banking stocks. Traders were buy-
ing CFDs with Spread Co though,
as the banks shares fell to support
around 155p, near the 9 and 21-
day moving averages. Barclays is
struggling to retake a trend line in
10/10 12/10 02/11 04/11 06/11 08/11
1,880
1,780
1,680
1,580
1,480
1,380
1,280
ANALYSIS l Another year of the golden bull
$per oz
LON GD ONCE FIX AM...........1817.00 39.00
SILVER LDN FIX AM ..................39.41 -1.01
MAPLE LEAF 1 OZ...................809.00 2.50
LON PLATINUM AM................1813.00 14.00
LON PALLADIUM AM...............726.00 -9.00
ALUMINIUM CASH .................2345.00 7.00
COPPER CASH ......................8781.00 72.00
LEAD CASH...........................2425.00 20.00
NICKEL CASH......................21700.00 55.00
TIN CASH.............................23500.00 50.00
ZINC CASH ............................2188.00 27.50
BRENT SPOT INDEX................109.65 -2.25
SOYA .....................................1355.50 -27.25
COCOA..................................2792.00 -1.00
COFFEE...................................263.00 -5.35
KRUG.....................................1845.00 13.20
WHEAT ....................................158.75 -3.05
AIR LIQUIDE........................................86.33 -1.76 100.65 80.90
ALLIANZ..............................................63.37 -3.53 108.85 56.16
ALSTOM ..............................................26.42 -0.88 45.32 25.03
ANHEUS-BUSCH INBEV ....................37.75 -0.22 46.33 33.85
ARCELORMITTAL...............................12.72 -0.64 28.55 12.06
AXA........................................................9.31 -0.33 16.16 8.05
BANCO SANTANDER...........................5.79 -0.13 9.72 5.15
BASF SE..............................................46.48 -0.96 70.22 42.19
BAYER.................................................38.28 -1.26 59.44 35.36
BBVA......................................................5.78 -0.17 10.21 5.03
BMW ....................................................56.20 -0.98 73.85 46.82
BNP PARIBAS.....................................26.65 -1.55 59.93 23.05
CARREFOUR ......................................16.01 -0.43 36.06 14.66
CREDIT AGRICOLE..............................4.88 -0.03 12.92 4.59
CRH PLC..............................................11.40 -0.28 17.40 10.28
DAIMLER.............................................35.40 -1.00 59.09 30.93
DANONE..............................................43.95 -0.86 53.16 42.08
DEU.BOERSE OFFRE ........................41.24 -2.37 55.75 37.03
DEUTSCHE BANK..............................23.96 -1.14 48.70 20.79
DEUTSCHE TELEKOM.........................8.33 -0.18 11.38 7.88
E.ON.....................................................15.17 -0.45 25.54 12.50
ENEL......................................................3.05 -0.09 4.86 2.85
ENI .......................................................12.80 -0.77 18.66 11.83
FRANCE TELECOM............................11.80 -0.31 17.45 11.26
GDF SUEZ ...........................................20.56 -0.53 30.05 18.32
GENERALI ASS...................................10.82 -0.40 17.05 10.34
IBERDROLA..........................................4.94 -0.08 6.50 4.29
ING GROEP CVA...................................4.91 -0.40 9.50 4.32
INTESA SANPAOLO.............................0.98 -0.04 2.53 0.85
KON.PHILIPS ELECTR.......................12.88 -0.23 25.45 12.06
L'OREAL..............................................72.98 -1.42 91.24 69.86
LVMH..................................................111.40 -3.85 132.65 97.67
MUNICH RE.........................................82.94 -2.80 126.00 78.10
NOKIA....................................................4.27 -0.09 8.49 3.33
REPSOL YPF.......................................19.34 -0.44 24.90 17.31
RWE.....................................................25.00 -0.55 55.88 21.22
SAINT-GOBAIN...................................29.79 -1.14 47.64 27.62
SANOFI ................................................47.51 -0.98 56.82 42.85
SAP......................................................36.50 -0.74 46.15 32.88
SCHNEIDER ELECTRIC.....................40.25 -1.72 61.83 37.42
SIEMENS .............................................68.61 -1.47 99.39 62.13
SOCIETE GENERALE.........................17.69 -1.27 52.70 14.32
TELECOM ITALIA..................................0.77 -0.02 1.16 0.70
TELEFONICA ......................................13.77 -0.33 19.69 12.50
TOTAL..................................................32.16 -0.58 44.55 30.34
UNIBAIL-RODAMCO SE...................134.20 -4.10 162.95 124.50
UNICREDIT............................................0.71 -0.01 2.03 0.67
UNILEVER CVA...................................22.48 -0.24 24.08 20.82
VINCI ....................................................32.77 -0.69 45.48 30.31
VIVENDI ...............................................15.33 -0.43 22.07 14.10
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5259.56 -108.85 -2.03
FTSE 250 INDEX . . . . . . . 10229.01 -199.16 -1.91
FTSE UK ALL SHARE . . . . 2728.15 -55.50 -1.99
FTSE AIMALL SH . . . . . . . . 761.12 -8.09 -1.05
DOWJONES INDUS 30 . . 11401.01 -108.08 -0.94
S&P 500 . . . . . . . . . . . . . . . 1204.09 -11.92 -0.98
NASDAQ COMPOSITE . . . 2612.83 -9.48 -0.36
FTSEUROFIRST 300 . . . . . . 916.07 -21.78 -2.32
NIKKEI 225 AVERAGE. . . . 8864.16 195.30 2.25
DAX 30 PERFORMANCE. . 5415.91 -157.60 -2.83
CAC 40 . . . . . . . . . . . . . . . . 2940.00 -91.08 -3.00
SHANGHAI SE INDEX . . . . 2437.80 -44.55 -1.80
HANG SENG. . . . . . . . . . . 18917.95 -537.36 -2.76
S&P/ASX 20 INDEX . . . . . . 2448.80 -38.90 -1.56
ASX ALL ORDINARIES . . . 4164.10 -65.80 -1.56
BOVESPA SAO PAOLO. . 57102.78 -107.33 -0.19
ISEQ OVERALL INDEX . . . 2456.54 -40.69 -1.63
STI . . . . . . . . . . . . . . . . . . . . 2757.23 -31.81 -1.14
IGBM. . . . . . . . . . . . . . . . . . . 829.34 -16.79 -1.98
SWISS MARKET INDEX. . . 5360.56 -92.32 -1.69
Price Chg %chg
3M........................................................79.21 -1.32 98.19 76.00
ABBOTT LABS ...................................51.99 -0.18 54.24 45.07
ALCOA.................................................11.58 -0.39 18.47 10.99
ALTRIA GROUP..................................26.87 -0.03 28.13 23.20
AMAZON.COM..................................241.69 2.39 244.00 145.16
AMERICAN EXPRESS........................48.68 -1.44 53.80 37.33
AMGEN INC.........................................56.53 -0.18 61.53 47.66
APPLE ...............................................411.63 11.13 413.23 269.50
AT&T....................................................28.58 -0.36 31.94 27.20
BANK OF AMERICA.............................6.99 -0.24 15.31 6.01
BERKSHIRE HATAW B.......................69.66 -1.89 87.65 66.51
BOEING CO.........................................64.15 -1.23 80.65 56.01
BRISTOL MYERS SQUI ......................30.72 0.19 30.93 20.05
CATERPILLAR....................................84.60 -1.30 116.55 71.09
CHEVRON...........................................98.71 -0.92 109.94 78.16
CISCO SYSTEMS................................16.51 -0.11 24.60 13.30
CITIGROUP.........................................27.71 -1.28 51.50 25.40
COCA-COLA.......................................70.49 -0.74 71.77 57.25
COLGATE PALMOLIVE......................93.32 -0.32 93.73 73.62
CONOCOPHILLIPS.............................66.77 -0.52 81.80 55.00
CVS/CAREMARK................................35.69 -0.53 39.50 29.27
DU PONT(EI) DE NMR........................46.38 -0.74 57.00 42.83
EXXON MOBIL....................................73.70 -0.85 88.23 60.45
GENERAL ELECTRIC.........................16.18 -0.15 21.65 14.72
GOOGLE A........................................546.67 -0.01 642.96 473.02
HEWLETT PACKARD.........................22.91 -0.62 49.39 22.13
HOME DEPOT.....................................34.35 -0.26 39.38 28.13
IBM.....................................................173.13 0.14 185.63 128.80
INTEL CORP .......................................21.93 -0.04 26.78 18.58
J.P.MORGAN CHASE.........................32.49 -0.94 48.36 31.21
JOHNSON & JOHNSON.....................64.14 -0.45 68.05 57.50
KRAFT FOODS A................................34.87 -0.19 36.30 24.30
MC DONALD'S CORP ........................88.81 0.52 91.22 72.14
MERCK AND CO. NEW......................32.25 -0.43 37.68 29.47
MICROSOFT........................................27.21 0.09 29.46 23.65
OCCID. PETROLEUM.........................82.46 -0.86 117.89 73.86
ORACLE CORP...................................29.02 -0.21 36.50 24.72
PEPSICO.............................................60.56 -1.49 71.89 59.25
PFIZER ................................................18.06 -0.09 21.45 16.25
PHILIP MORRIS INTL .........................67.91 -1.17 72.74 54.61
PROCTER AND GAMBLE ..................63.81 -0.52 67.72 56.57
QUALCOMM INC ................................53.67 -0.20 59.84 41.65
SCHLUMBERGER ..............................70.76 -2.08 95.64 57.70
TRAVELERS CIES..............................49.90 -0.71 64.17 46.62
UNITED TECHNOLOGIE ....................75.55 0.05 91.83 67.12
UNITEDHEALTH GROUP...................49.95 -0.81 53.50 33.92
VERIZON COMMS ..............................36.28 -0.44 38.95 30.94
WAL-MART STORES..........................52.45 -0.20 57.90 48.31
WALT DISNEY CO ..............................32.51 -0.40 44.34 29.60
WELLS FARGO & CO.........................24.33 -0.62 34.25 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.500 0.00
LIBOR Euro - overnight ..................0.962 0.03
LIBOR Euro - 12 months ................2.037 0.00
LIBOR USD - overnight...................0.148 0.00
LIBOR USD - 12 months.................0.835 0.00
HaIifax mortgage rate .....................3.990 0.00
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.000 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................3.190 -0.14
European repo rate.........................0.843 0.00
Euro Euribor ....................................1.125 0.01
The vix index ...................................34.45 3.46
The baItic dry index ........................1.814 -0.09
Markit iBoxx...................................232.84 2.11
Markit iTraxx..................................175.37 1.32
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
C/$ 1.3632 0.0160
C/ 0.8701 0.0033
C/ 104.27 1.7460
/C 1.1499 0.0046
/$ 1.5666 0.0122
/ 119.53 1.4018
FTSE 100
5259.56
108.85
FTSE 250
10229.01
199.16
FTSE ALLSHARE
2728.15
55.50
DOW
11401.01
108.08
NASDAQ
2612.83
9.48
S&P 500
1204.09
11.92
Smiths Group . . . . . .953.0 -28.0 1429.0 907.5
Brown (N.) Group . . .284.2 -4.3 311.2 232.3
Carpetright . . . . . . . . .502.0 -24.0 835.5 493.7
Debenhams . . . . . . . . .59.3 -0.3 77.4 51.2
Dignity . . . . . . . . . . . .830.0 -13.0 843.0 633.0
Dixons RetaiI . . . . . . .11.3 -0.2 28.5 10.6
DuneImGroup . . . . . .455.3 2.2 550.0 378.4
HaIfords Group . . . . .296.8 -4.2 462.2 268.6
Home RetaiI Group . .115.1 -3.0 235.0 105.1
Inchcape . . . . . . . . . .304.4 -11.8 425.4 268.1
JD Sports Fashion . .859.5 29.5 1030.0 726.0
Kesa EIectricaIs . . . . .84.3 -5.4 174.0 84.3
Kingfisher . . . . . . . . .252.6 -0.9 287.1 217.0
Marks & Spencer G . .328.7 -6.3 427.5 301.8
Mothercare . . . . . . . .336.5 -15.6 627.5 326.9
Next . . . . . . . . . . . . .2617.0 -1.0 2643.0 1868.0
Sports Direct Int . . . .229.5 4.8 266.2 125.5
WH Smith . . . . . . . . . .506.5 -4.0 527.0 433.8
Smith & Nephew . . . .592.0 0.0 742.0 521.0
Synergy HeaIth . . . . .896.0 -6.0 981.0 690.0
Barratt DeveIopme . . .77.8 -3.2 119.0 67.5
BeIIway . . . . . . . . . . . .602.5 -3.5 753.5 511.0
BerkeIey Group Ho .1224.0 -25.0 1299.0 789.5
BaIfour Beatty . . . . . .250.6 0.5 357.3 228.6
KeIIer Group . . . . . . .352.5 -12.5 698.5 307.3
Kier Group . . . . . . . .1231.0 -22.0 1418.0 1097.0
Drax Group . . . . . . . .518.5 6.0 536.5 353.6
Scottish & Southe . .1287.0 -14.0 1423.0 1108.0
Domino Printing S . .469.9 -30.1 705.0 468.0
HaIma . . . . . . . . . . . . .335.9 -8.0 429.6 305.5
Laird . . . . . . . . . . . . . .144.5 -2.3 207.0 127.9
Morgan CrucibIe C . .251.0 -6.0 357.1 205.3
Renishaw . . . . . . . . .1147.0 -77.0 1886.0 980.0
Spectris . . . . . . . . . .1316.0 -45.0 1679.0 998.0
Aberforth SmaIIer . . .554.0 -15.0 714.0 537.0
AIIiance Trust . . . . . .337.5 -5.0 392.7 325.0
Bankers Inv Trust . . .367.5 -11.1 428.0 356.5
BH GIobaI Ltd. GB .1192.0 3.0 1204.0 1058.0
BH GIobaI Ltd. US . . . .11.9 0.1 12.0 10.4
BH Macro Ltd. EUR . . .19.6 -0.2 20.1 15.8
BH Macro Ltd. GBP 2007.0 -31.0 2070.0 1630.0
BH Macro Ltd. USD . . .19.4 -0.1 20.1 15.8
BIackRock WorId M .667.0 -30.0 815.5 616.0
BIueCrest AIIBIue . . .170.8 -0.7 176.2 162.4
British Assets Tr . . . .115.5 -3.5 140.5 113.0
British Empire Se . . .455.0 -12.5 533.0 448.0
CaIedonia Investm .1547.0 -6.0 1928.0 1500.0
City of London In . . .267.5 -6.3 306.9 257.0
Dexion AbsoIute L . .140.0 -1.0 151.0 135.2
Edinburgh Dragon . .221.5 -4.4 262.1 213.0
Edinburgh Inv Tru . . .440.1 -11.4 492.2 414.9
EIectra Private E . . .1298.0 -14.0 1755.0 1287.0
F&C Inv Trust . . . . . .283.5 -3.5 327.9 268.6
FideIity China Sp . . . . .82.0 -1.8 128.7 80.0
FideIity European . . .980.0 -32.0 1287.0 947.0
FideIity SpeciaI . . . . .477.5 -4.6 595.0 451.5
HeraId Inv Trust . . . . .443.0 -10.7 545.5 422.0
HICL Infrastructu . . . .114.8 -0.2 121.3 112.0
Impax Environment . .97.0 -2.0 130.5 96.1
JPMorgan American .807.0 -8.0 916.0 721.5
JPMorgan Asian In . .193.0 -5.5 250.8 193.0
JPMorgan Emerging .510.5 -14.5 639.0 499.3
JPMorgan European .740.0 0.0 983.5 701.0
JPMorgan Indian I . . .365.7 -13.5 502.0 354.8
JPMorgan Russian .500.5 -17.5 755.0 495.4
Law Debenture Cor . .333.5 -3.5 385.0 309.8
MercantiIe Inv Tr . . . .911.5 -9.5 1137.0 876.5
Merchants Trust . . . .360.9 -11.7 431.8 348.7
Monks Inv Trust . . . .328.6 -9.9 367.9 311.3
Murray Income Tru . .609.0 -6.0 673.0 577.0
Murray Internatio . . .876.0 -24.0 991.5 845.5
PerpetuaI Income . . .241.9 -6.0 276.0 230.6
PoIar Cap TechnoI . .335.8 -3.1 391.2 299.5
RIT CapitaI Partn . . .1250.0 -20.0 1334.0 1110.0
Scottish Inv Trus . . . .444.0 -16.0 524.0 423.5
Scottish Mortgage . .674.0 -10.5 781.0 611.5
SVG CapitaI . . . . . . . .223.1 -3.6 279.8 161.0
TempIe Bar Inv Tr . . .810.5 -23.0 952.0 782.0
TempIeton Emergin .558.0 -15.0 689.5 554.0
TR Property Inv T . . .162.6 -2.4 206.1 154.5
TR Property Inv T . . . .73.6 -1.9 94.0 68.7
Witan Inv Trust . . . . .438.1 -7.9 533.0 426.4
3i Group . . . . . . . . . . .198.3 -11.5 340.0 188.4
3i Infrastructure . . . .120.5 -0.7 125.2 112.9
Aberdeen Asset Ma .187.9 -3.4 240.0 148.4
Ashmore Group . . . .388.5 -13.7 420.0 301.5
Brewin DoIphin Ho . .133.7 1.4 185.4 121.3
CameIIia . . . . . . . . . .9283.0 6.010950.0 8900.0
CharIes TayIor Co . . .141.0 0.8 198.3 122.0
City of London Gr . . . .77.8 1.5 93.6 76.3
City of London In . . .381.3 -3.8 461.5 314.0
CIose Brothers Gr . . .690.5 6.5 888.5 656.5
CoIIins Stewart H . . . .70.0 -1.5 90.8 67.0
EvoIution Group . . . . .89.5 -2.5 94.0 62.3
F&C Asset Managem .65.2 -2.9 92.9 58.7
Hargreaves Lansdo .442.6 -20.8 646.5 402.5
HeIphire Group . . . . . . .2.7 0.0 39.0 2.2
Henderson Group . . .120.3 -7.7 173.1 117.4
Highway CapitaI . . . . .14.5 0.0 21.0 6.0
ICAP . . . . . . . . . . . . . .463.5 -8.9 570.5 391.3
IG Group HoIdings . .433.6 -13.6 553.0 393.6
Intermediate Capi . . .224.2 -2.9 360.3 204.8
InternationaI Per . . . .222.9 -13.6 388.8 218.1
InternationaI Pub . . . .113.1 -0.4 118.3 108.6
Investec . . . . . . . . . . .399.1 -10.9 538.0 378.7
IP Group . . . . . . . . . . . .45.5 -1.3 54.5 27.9
Jupiter Fund Mana . .214.3 -14.6 337.3 184.9
Liontrust Asset M . . . .73.5 1.0 95.0 72.0
LMS CapitaI . . . . . . . . .61.0 0.0 64.8 44.8
London Finance & . . .21.5 0.0 23.5 16.5
London Stock Exch .844.5 -26.5 1076.0 675.0
Lonrho . . . . . . . . . . . . .15.0 -0.3 19.8 10.8
Man Group . . . . . . . . .229.8 -7.4 311.0 178.0
Paragon Group Of . .153.9 -3.0 206.1 134.6
Provident Financi . .1058.0 -14.0 1124.0 728.5
Rathbone Brothers .1053.0 -18.0 1257.0 828.0
Record . . . . . . . . . . . . .29.6 0.5 51.0 20.3
RSM Tenon Group . . .22.0 0.5 66.3 21.3
Schroders . . . . . . . .1288.0 -35.0 1922.0 1278.0
Schroders (Non-Vo .1056.0 -31.0 1554.0 1048.0
TuIIett Prebon . . . . . .379.7 0.8 428.6 329.8
WaIker Crips Grou . . .49.0 0.0 51.5 45.0
BT Group . . . . . . . . . .170.9 -4.9 204.1 138.9
CabIe & WireIess . . . .40.1 -0.4 61.1 31.3
CabIe & WireIess . . . .33.1 -0.1 78.4 30.9
COLT Group SA . . . .107.6 2.0 156.2 100.6
TaIkTaIk TeIecom . . .125.4 -2.1 168.3 119.8
TeIecomPIus . . . . . . .699.5 4.5 704.0 365.5
Booker Group . . . . . . .74.5 -1.8 77.9 47.9
Greggs . . . . . . . . . . . .466.8 -6.2 550.5 429.1
Morrison (Wm) Sup .292.8 0.3 308.3 262.7
Ocado Group . . . . . . .118.4 -15.3 285.0 107.0
Sainsbury (J) . . . . . . .280.6 -5.3 395.0 275.6
Tesco . . . . . . . . . . . . .367.8 -6.1 440.7 360.1
Associated Britis . .1099.0 -19.0 1182.0 940.0
Cranswick . . . . . . . . .618.5 -14.5 896.0 606.0
Dairy Crest Group . . .337.0 -0.8 424.9 325.0
Devro . . . . . . . . . . . . .236.5 -14.0 296.9 218.0
Premier Foods . . . . . . .12.3 -0.8 35.1 11.3
Tate & LyIe . . . . . . . . .603.5 -8.0 656.0 461.6
UniIever . . . . . . . . . .1948.0 -10.0 2081.0 1750.0
Mondi . . . . . . . . . . . . .531.0 -20.0 664.0 468.8
Centrica . . . . . . . . . . .293.1 -6.9 345.8 286.3
InternationaI Pow . . .333.2 -3.0 448.6 279.4
NationaI Grid . . . . . . .626.0 5.5 632.5 530.0
Northumbrian Wate .462.7 0.7 469.5 295.5
Pennon Group . . . . . .682.0 -5.0 737.5 579.5
Severn Trent . . . . . .1475.0 -13.0 1517.0 1306.0
United UtiIities . . . . .601.0 -1.5 631.5 543.5
Cookson Group . . . . .439.0 -20.0 724.5 421.1
DS Smith . . . . . . . . . .195.5 -4.8 266.2 145.9
Rexam . . . . . . . . . . . .322.6 -10.5 400.0 301.5
RPC Group . . . . . . . .334.0 -4.0 384.8 215.4
BAE Systems . . . . . .280.0 -4.3 369.9 248.1
Chemring Group . . . .539.5 -9.5 736.5 485.0
Cobham . . . . . . . . . . .179.6 -1.3 245.6 173.4
Meggitt . . . . . . . . . . . .331.5 11.4 397.6 293.5
QinetiQ Group . . . . . .117.5 -1.4 136.3 96.7
RoIIs-Royce Group . .607.5 -12.5 665.0 557.5
Senior . . . . . . . . . . . . .145.0 -3.3 190.6 127.0
UItra EIectronics . . .1445.0 25.0 1895.0 1305.0
GKN . . . . . . . . . . . . . .189.3 -5.3 245.0 161.0
BarcIays . . . . . . . . . . .152.7 -10.7 333.6 141.7
HSBC HoIdings . . . . .511.2 -13.6 730.9 491.4
LIoyds Banking Gr . . .33.4 -2.4 77.4 27.6
RoyaI Bank of Sco . . .22.9 -1.4 49.5 19.7
Standard Chartere .1337.0 -39.0 1950.0 1295.0
AG Barr . . . . . . . . . .1159.0 0.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .301.4 -7.6 503.5 289.9
Diageo . . . . . . . . . . .1208.0 -26.0 1307.0 1070.0
SABMiIIer . . . . . . . . .2190.0 -45.0 2340.0 1974.5
AZ EIectronic Mat . . .249.7 -16.9 338.1 210.0
Croda Internation . .1789.0 -55.0 2081.0 1367.0
EIementis . . . . . . . . . .137.6 -1.3 187.4 95.0
Johnson Matthey . .1622.0 -52.0 2119.0 1534.0
Victrex . . . . . . . . . . .1224.0 -18.0 1590.0 1178.0
YuIe Catto & Co . . . . .172.3 0.9 253.0 150.1
Price Chg High Low
Bovis Homes Group .401.3 -8.6 464.7 326.5
Persimmon . . . . . . . .440.2 -14.2 502.5 336.5
Reckitt Benckiser . .3270.0 -28.0 3648.0 3015.0
Redrow . . . . . . . . . . . .106.5 -3.5 139.0 98.4
TayIor Wimpey . . . . . . .33.1 -1.4 43.3 22.3
Bodycote . . . . . . . . . .270.0 -6.9 397.7 247.9
Charter Internati . . . .865.0 -5.0 873.1 538.5
Fenner . . . . . . . . . . . .345.5 -10.5 422.5 231.0
IMI . . . . . . . . . . . . . . . .773.5 -34.0 1119.0 738.0
MeIrose . . . . . . . . . . .293.1 -7.9 365.4 254.0
Northgate . . . . . . . . . .266.5 -5.7 346.7 202.0
Rotork . . . . . . . . . . .1618.0 -40.0 1895.0 1501.0
Spirax-Sarco Engi . .1808.0 -35.0 2063.0 1649.0
Weir Group . . . . . . .1782.0 -63.0 2218.0 1371.0
Ferrexpo . . . . . . . . . . .365.0 -10.9 499.0 292.4
TaIvivaara Mining . . .296.0 -11.1 622.0 283.4
BBAAviation . . . . . . .168.7 -2.2 240.8 156.0
Stobart Group Ltd . . .127.5 -5.5 163.6 124.1
AdmiraI Group . . . . .1276.0 -21.0 1754.0 1258.0
AmIin . . . . . . . . . . . . .292.5 -4.6 427.0 278.7
BeazIey . . . . . . . . . . . .118.0 -3.0 139.2 109.6
Informa . . . . . . . . . . . .339.2 -18.3 461.1 324.0
ITE Group . . . . . . . . . .174.4 -7.8 258.2 160.5
ITV . . . . . . . . . . . . . . . . .56.7 -0.3 93.5 51.7
Johnston Press . . . . . . .5.0 0.2 15.3 4.4
MecomGroup . . . . . .141.3 -1.8 310.0 141.3
Moneysupermarket. .112.7 -4.9 120.4 75.7
Pearson . . . . . . . . . .1136.0 -2.0 1207.0 926.0
PerformGroup . . . . .219.8 9.8 234.5 150.0
Reed EIsevier . . . . . .489.5 -7.9 590.5 461.3
Rightmove . . . . . . . .1258.0 27.0 1307.0 725.0
STV Group . . . . . . . . .110.0 0.0 168.0 89.8
Tarsus Group . . . . . .135.0 -0.3 165.0 112.5
Trinity Mirror . . . . . . . .41.0 0.0 124.0 37.5
UBM . . . . . . . . . . . . . .455.0 -11.3 725.0 416.0
UTV Media . . . . . . . . .124.8 0.5 151.0 101.0
WiImington Group . . .85.5 3.0 183.0 82.5
WPP . . . . . . . . . . . . . .616.0 -12.5 846.5 578.5
YeII Group . . . . . . . . . . .4.5 -0.2 16.6 4.2
African Barrick G . . .600.0 8.0 638.0 393.5
AngIo American . . .2407.0-116.5 3437.0 2234.0
AngIo Pacific Gro . . .284.7 -14.1 369.3 257.1
Antofagasta . . . . . . .1194.0-106.0 1634.0 1136.0
Aquarius PIatinum . .220.0 -3.2 419.0 213.6
BHP BiIIiton . . . . . . .1935.0 -67.0 2631.5 1846.0
Centamin Egypt Lt . .105.7 -2.0 197.1 89.7
CatIin Group Ltd. . . .354.9 -0.6 421.4 325.0
Hiscox Ltd. . . . . . . . . .353.8 -6.2 424.7 340.5
Jardine LIoyd Tho . . .656.0 -4.5 709.0 564.5
Lancashire HoIdin . . .706.0 -19.0 725.0 529.0
RSA Insurance Gro . .112.5 -1.7 143.5 107.9
Aviva . . . . . . . . . . . . . .302.4 -8.0 477.9 289.2
LegaI & GeneraI G . . . .97.0 -3.5 123.8 90.9
OId MutuaI . . . . . . . . .112.7 -3.1 145.2 103.2
Phoenix Group HoI . .510.0 -6.0 724.0 458.0
PrudentiaI . . . . . . . . .586.5 -19.0 777.0 564.5
ResoIution Ltd. . . . . .246.0 -6.2 316.1 211.3
St James's PIace . . . .316.5 -0.9 376.0 236.2
Standard Life . . . . . . .192.5 -4.8 244.7 172.0
4Imprint Group . . . . .214.5 1.5 295.0 195.0
Aegis Group . . . . . . .125.5 -4.3 163.5 121.2
BIoomsbury PubIis . .100.5 -0.5 138.0 98.8
British Sky Broad . . .679.0 -9.0 850.0 618.5
Centaur Media . . . . . . .37.8 -1.0 73.0 37.0
Chime Communicati .180.3 -0.8 298.5 173.0
Creston . . . . . . . . . . . .81.0 1.0 121.0 78.5
DaiIy MaiI and Ge . . .378.0 -3.8 594.5 359.5
Euromoney Institu . .557.5 14.5 736.0 522.5
Future . . . . . . . . . . . . . .11.8 -0.3 30.0 10.8
Haynes PubIishing . .235.0 0.0 262.5 202.5
Huntsworth . . . . . . . . .56.8 0.8 86.0 56.0
Eurasian NaturaI . . .645.5 -22.0 1125.0 585.5
FresniIIo . . . . . . . . . .1867.0 -15.0 2150.0 1168.0
GemDiamonds Ltd. .241.7 0.7 306.0 179.8
GIencore Internat . . .437.0 -17.7 531.1 348.0
HochschiId Mining . .521.5 0.0 680.0 418.0
Kazakhmys . . . . . . . .977.0 -75.0 1671.0 918.0
Kenmare Resources . .45.6 -2.7 59.9 17.2
Lonmin . . . . . . . . . . .1166.0 -32.0 1983.0 1103.0
New WorId Resourc .535.0 -19.5 1060.0 514.5
PetropavIovsk . . . . . .833.5 -2.5 1226.0 676.0
RandgoId Resource 7065.0 110.0 7130.0 4425.0
Rio Tinto . . . . . . . . .3505.0-120.0 4712.0 3387.5
Vedanta Resources 1328.0 -94.0 2559.0 1225.0
Xstrata . . . . . . . . . . . .970.5 -70.5 1550.0 933.4
Inmarsat . . . . . . . . . . .501.5 -31.0 719.5 389.7
Vodafone Group . . . .161.2 -2.8 182.8 155.1
Genesis Emerging . .461.5 -13.5 568.0 444.5
Afren . . . . . . . . . . . . . .100.7 -4.2 171.2 92.5
BG Group . . . . . . . . .1258.0 -25.5 1564.5 1082.5
BP . . . . . . . . . . . . . . . .407.4 -6.2 509.0 363.2
Cairn Energy . . . . . . .286.1 -9.8 469.7 281.4
EnQuest . . . . . . . . . . .100.2 -1.9 158.5 95.1
Essar Energy . . . . . .258.6 -10.3 589.5 235.1
ExiIIon Energy . . . . . .295.0 -18.0 469.7 190.0
Heritage OiI . . . . . . . .231.8 -8.2 486.0 190.0
JKX OiI & Gas . . . . . .180.0 -2.4 335.1 160.0
Premier OiI . . . . . . . . .335.4 -14.5 535.0 310.0
RoyaI Dutch SheII . .2057.5 -35.5 2326.5 1863.5
RoyaI Dutch SheII . .2081.5 -30.5 2336.0 1811.0
SaIamander Energy .205.7 -9.3 317.6 200.4
Soco Internationa . . .345.9 -12.1 454.7 279.8
TuIIow OiI . . . . . . . . .1364.0 -31.0 1493.0 945.5
Amec . . . . . . . . . . . . .910.0 -33.5 1251.0 834.0
Hunting . . . . . . . . . . .633.0 -17.0 817.0 592.5
LampreII . . . . . . . . . . .279.5 -12.5 395.2 254.5
Petrofac Ltd. . . . . . .1361.0 -52.0 1685.0 1110.0
Wood Group (John) .553.0 -18.5 715.8 393.5
Burberry Group . . . .1450.0 -15.0 1600.0 929.5
PZ Cussons . . . . . . . .336.7 0.9 409.0 320.5
Supergroup . . . . . . .1094.0 -16.0 1820.0 818.5
AstraZeneca . . . . . .2797.5 -51.5 3359.0 2543.5
BTG . . . . . . . . . . . . . .267.5 -8.5 309.7 210.1
Genus . . . . . . . . . . . . .995.0 -45.0 1052.0 772.0
GIaxoSmithKIine . . .1305.0 5.0 1385.0 1127.5
Hikma Pharmaceuti .579.5 -11.5 900.0 555.5
Shire PIc . . . . . . . . . .1985.0 -12.0 2136.0 1405.0
CapitaI & Countie . . .178.5 -0.7 203.7 129.5
Daejan HoIdings . . .2455.0 62.0 2954.0 2282.0
F&C CommerciaI Pr . .99.4 -2.6 108.0 88.0
Grainger . . . . . . . . . . . .95.9 -0.1 133.2 86.3
London & Stamford .118.1 -2.3 140.0 110.3
SaviIIs . . . . . . . . . . . . .293.0 -3.6 427.1 288.1
St. Modwen Proper . .132.0 -8.0 196.2 123.5
UK CommerciaI Pro . .77.3 0.7 85.5 70.4
Unite Group . . . . . . . .173.8 -6.2 229.8 152.9
Big YeIIow Group . . .254.0 -4.0 353.3 234.2
British Land Co . . . . .500.5 -10.0 629.5 464.0
CapitaI Shopping . . .320.8 -7.4 424.8 312.5
Derwent London . . .1597.0 -39.0 1880.0 1411.0
Great PortIand Es . . .373.1 -9.6 445.0 328.6
Hammerson . . . . . . . .385.9 -9.0 490.9 382.0
Hansteen HoIdings . . .74.8 -1.1 89.5 68.8
Land Securities G . . .659.5 -18.0 885.0 620.5
SEGRO . . . . . . . . . . . .229.7 -4.3 331.3 228.5
Shaftesbury . . . . . . . .490.0 -3.1 539.0 426.3
Autonomy Corporat 2531.0 2.0 2540.0 1271.0
Aveva Group . . . . . .1501.0 21.0 1799.0 1391.0
Computacenter . . . . .388.0 -8.0 490.0 286.4
Fidessa Group . . . . .1565.0 -20.0 2109.0 1409.0
Invensys . . . . . . . . . . .233.4 -11.6 364.3 221.7
Kofax . . . . . . . . . . . . .297.8 -21.3 535.0 253.0
Logica . . . . . . . . . . . . .83.5 -1.8 147.2 80.3
Micro Focus Inter . . .313.9 -10.1 426.2 239.4
Misys . . . . . . . . . . . . .252.1 -22.8 420.2 234.7
Sage Group . . . . . . . .257.2 -5.7 302.0 231.7
SDL . . . . . . . . . . . . . . .618.5 -1.5 711.5 555.0
TeIecity Group . . . . . .567.0 -7.5 574.5 430.0
Aggreko . . . . . . . . . .1783.0 -33.0 2034.0 1394.5
Ashtead Group . . . . .133.7 -8.2 207.9 99.4
Atkins (WS) . . . . . . . .536.5 -21.0 820.0 513.5
Babcock Internati . . .640.5 -2.5 733.0 513.5
Berendsen . . . . . . . . .457.6 -8.8 568.0 390.8
BunzI . . . . . . . . . . . . .781.5 -9.0 812.5 676.5
Capita Group . . . . . . .725.0 -8.5 794.5 635.5
CariIIion . . . . . . . . . . .336.8 -2.4 403.2 298.8
De La Rue . . . . . . . . .778.5 -4.5 853.5 549.5
EIectrocomponents .199.3 -6.5 294.9 190.0
Experian . . . . . . . . . . .695.0 -16.5 833.5 663.0
FiItrona PLC . . . . . . . .359.2 -6.0 385.5 227.5
G4S . . . . . . . . . . . . . . .257.6 -7.4 291.0 237.7
Hays . . . . . . . . . . . . . . .74.7 -0.4 133.6 69.4
Homeserve . . . . . . . .479.9 -7.8 532.0 408.0
Howden Joinery Gr . .106.7 -3.7 127.5 71.0
Intertek Group . . . . .1980.0 -61.0 2148.0 1715.0
MichaeI Page Inte . . .352.0 -14.1 567.0 338.7
Mitie Group . . . . . . . .234.6 -4.9 242.5 191.2
Premier FarneII . . . . .158.9 -2.4 308.8 151.9
Regus . . . . . . . . . . . . . .73.9 -3.2 119.0 64.0
RentokiI InitiaI . . . . . . .78.7 -0.3 104.9 72.9
RPS Group . . . . . . . . .186.2 -0.6 253.0 179.5
Serco Group . . . . . . .504.0 -11.5 633.0 491.9
Shanks Group . . . . . .111.1 -3.1 130.9 102.0
SIG . . . . . . . . . . . . . . . .97.3 -2.7 153.5 96.0
SThree . . . . . . . . . . . .234.6 -4.0 447.6 221.6
Travis Perkins . . . . . .750.0 -21.5 1127.0 722.0
WoIseIey . . . . . . . . .1507.0 -35.0 2261.0 1404.0
ARM HoIdings . . . . . .596.5 1.5 651.0 338.9
CSR . . . . . . . . . . . . . .237.5 -5.2 447.0 208.0
Imagination Techn . .416.1 6.4 502.0 296.9
Pace . . . . . . . . . . . . . .102.9 -2.7 231.8 91.0
Spirent Communica .125.0 -0.3 160.3 116.0
British American . .2763.5 -28.0 2871.0 2282.5
ImperiaI Tobacco . .2038.0 12.0 2231.0 1784.0
Avis Europe . . . . . . . .314.6 1.1 314.7 184.0
Betfair Group . . . . . . .795.0 23.0 1550.0 567.0
Bwin.party Digita . . .125.0 -3.6 296.0 100.6
CarnivaI . . . . . . . . . .2013.0 -61.0 3153.0 1742.0
Compass Group . . . .553.0 -6.0 612.0 511.5
Domino's Pizza UK . .509.5 5.5 586.0 377.0
easyJet . . . . . . . . . . . .319.2 -11.3 479.0 301.0
Enterprise Inns . . . . . .39.8 -0.8 122.7 32.5
FirstGroup . . . . . . . . .338.3 -2.7 412.6 311.3
Go-Ahead Group . . .1442.0 -64.0 1598.0 1085.0
Greene King . . . . . . .457.1 -5.1 518.0 410.0
InterContinentaI . . .1062.0 -5.0 1435.0 955.0
InternationaI Con . . .154.2 -3.9 305.0 146.2
JD Wetherspoon . . . .398.7 -9.6 468.3 389.9
Ladbrokes . . . . . . . . .128.0 1.2 155.3 120.0
Marston's . . . . . . . . . . .96.1 -1.7 117.1 87.1
MiIIennium& Copt . .409.1 -2.9 600.5 395.5
MitcheIIs & ButIe . . . .255.2 -5.2 361.0 216.4
NationaI Express . . .230.2 -6.5 270.2 220.7
Rank Group . . . . . . . .135.6 -0.3 153.7 109.5
Restaurant Group . . .269.1 -6.7 335.0 254.9
Spirit Pub Compan . . .39.8 -2.3 55.0 37.0
Stagecoach Group . .243.2 -3.4 268.5 180.4
Thomas Cook Group .40.5 -3.4 204.8 33.7
TUI TraveI . . . . . . . . . .150.1 -8.4 271.9 137.2
Whitbread . . . . . . . .1609.0 -32.0 1887.0 1409.0
WiIIiamHiII . . . . . . . . .227.8 -0.3 237.3 155.5
Abcam . . . . . . . . . . . .370.0 0.0 460.0 307.0
AIbemarIe & Bond . .373.0 7.0 400.1 250.0
Amerisur Resource . .15.5 -0.1 29.0 11.5
Andor TechnoIogy . .575.0 -14.5 685.0 330.0
ArchipeIago Resou . . .76.0 0.3 79.0 32.3
ASOS . . . . . . . . . . . .1659.0 -48.0 2468.0 1067.0
AureIian OiI & Ga . . . .17.0 1.0 92.0 16.0
Avanti Communicat .304.0 -6.3 735.0 288.8
Avocet Mining . . . . . .272.3 3.8 286.8 139.0
BIinkx . . . . . . . . . . . . .144.0 -8.0 152.3 70.5
Borders & Souther . . .49.0 -0.3 93.0 44.8
BowLeven . . . . . . . . .120.0 -2.8 398.0 115.3
Brooks MacdonaId 1233.0 -7.0 1372.5 907.5
Conygar Investmen . .98.4 0.4 120.0 92.5
Cove Energy . . . . . . . .79.0 -3.0 112.8 61.0
Daisy Group . . . . . . . .110.0 -0.5 127.0 88.0
EMIS Group . . . . . . . .548.5 -1.5 580.0 352.5
Encore OiI . . . . . . . . . .50.0 -0.5 151.5 40.8
Faroe PetroIeum . . . .157.0 -3.0 218.3 133.0
GuIfsands PetroIe . . .178.5 -1.5 401.5 142.5
GWPharmaceuticaI .102.0 -1.5 130.0 83.0
Hamworthy . . . . . . . .534.0 -4.0 705.0 360.0
Hargreaves Servic .1078.0 57.0 1080.0 662.0
HeaIthcare Locums . . . .8.3 -0.4 8.8 8.0
Immunodiagnostic .1037.0 2.0 1218.0 768.5
ImpeIIamGroup . . . .320.0 -10.0 387.5 133.0
James HaIstead . . . . .435.0 -8.5 495.0 323.5
KaIahari MineraIs . . .240.0 -5.0 301.0 142.0
London Mining . . . . .376.0 3.3 436.5 283.0
Lupus CapitaI . . . . . . .99.8 1.8 150.0 86.0
M. P. Evans Group . .437.0 3.0 500.5 371.0
Majestic Wine . . . . . .412.3 -10.4 510.0 318.0
May Gurney Integr . .243.5 -3.9 295.0 177.0
Monitise . . . . . . . . . . . .34.0 -0.5 39.0 18.5
MuIberry Group . . . .1550.0 10.0 1920.0 375.0
Nanoco Group . . . . . . .60.8 0.8 115.8 57.0
NauticaI PetroIeu . . .295.0 -8.0 547.0 215.0
NichoIs . . . . . . . . . . . .521.5 1.5 579.0 410.0
Numis Corporation . . .90.0 1.0 137.8 89.0
Pan African Resou . . .13.0 0.3 14.5 8.2
Patagonia GoId . . . . . .65.0 2.0 70.0 20.3
Prezzo . . . . . . . . . . . . .58.8 -0.3 71.5 53.3
Pursuit Dynamics . . .202.0 -7.0 700.0 160.5
Rockhopper ExpIor .215.5 -5.0 510.0 141.0
RWS HoIdings . . . . . .435.0 4.0 479.8 258.5
Songbird Estates . . .121.8 -1.3 160.3 110.3
VaIiant PetroIeum . . .437.0 0.0 761.5 436.0
Young & Co's Brew . .652.5 2.5 712.0 530.0
Perform Group . . . . .219.8 4.7
Meggitt . . . . . . . . . . . .331.5 3.6
JD Sports Fashion . .859.5 3.6
Betfair Group . . . . . . .795.0 3.0
Euromoney Institut . .557.5 2.7
Daejan HoIdings . . .2455.0 2.6
Rightmove . . . . . . . .1258.0 2.2
Sports Direct Inte . . .229.5 2.1
COLT Group SA . . . .107.6 1.9
UItra EIectronics . .1445.0 1.8
Ocado Group . . . . . . .118.4 -11.4
Misys . . . . . . . . . . . . .252.1 -8.3
Antofagasta . . . . . . .1194.0 -8.2
Thomas Cook Group .40.5 -7.6
Kazakhmys . . . . . . . .977.0 -7.1
Xstrata . . . . . . . . . . . .970.5 -6.8
LIoyds Banking Gro . .33.4 -6.7
Kofax . . . . . . . . . . . . .297.8 -6.7
Vedanta Resources .1328.0 -6.6
BarcIays . . . . . . . . . . .152.7 -6.6
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
Price Chg High Low Price Chg High Low
GILTS
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FORESTRY & PAPER
GAS, WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT & S.
HHOLD GDS & HOME CONSTR.
INDUSTRIAL ENGINEERING
INDUSTRIAL TRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
REAL ESTATE INVEST. & SERV.
SOFTWARE & COMPUTER SERV.
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MINING
NONEQUITY INVESTM. COMM.
Tsy 3.250 11 . . . . .100.47 0.00 103.2 100.5
Tsy 9.000 12 . . . .107.10 0.00 115.1 106.7
Tsy 5.000 12 . . . .102.07 -0.01 106.3 102.1
Tsy 5.250 12 . . . .103.36 -0.01 107.7 103.3
Tsy 4.500 13 . . . .105.79 0.00 108.8 105.7
Tsy 8.000 13 . . . . .114.90 0.00 120.7 114.8
Tsy 2.500 13 . . . .283.97 -0.05 287.7 277.5
Tsy 5.000 14 . . . . .112.50 0.07 114.1 109.2
Tsy 4.750 15 . . . . .114.66 0.12 114.8 108.6
Tsy 8.000 15 . . . .128.81 0.12 131.3 123.7
Tsy 7.750 15 . . . .102.00 0.29 109.2 101.7
Tsy 4.000 16 . . . . .113.18 0.19 113.4 104.9
Tsy 2.500 16 . . . .340.37 0.09 341.0 310.2
Tsy 8.750 17 . . . .140.74 0.21 142.1 132.9
Tsy 12.000 17 . . .124.20 0.00 134.3 124.2
Tsy 1.250 17 . . . . .114.78 0.41 115.0 106.7
Tsy 5.000 18 . . . .120.82 0.43 121.1 109.7
Tsy 4.500 19 . . . . .118.17 0.50 118.5 105.4
Tsy 3.750 19 . . . . .112.66 0.56 112.9 99.4
Tsy 2.500 20 . . . .354.60 0.50 355.6 312.4
Tsy 4.750 20 . . . .120.47 0.59 120.7 106.6
Tsy 8.000 21 . . . .151.14 0.62 151.6 133.8
Tsy 1.875 22 . . . .123.66 0.63 124.0 111.3
Tsy 4.000 22 . . . . .114.17 0.84 114.4 99.0
Tsy 2.500 24 . . . .316.91 0.64 318.0 273.5
Tsy 5.000 25 . . . .124.77 0.92 125.1 107.4
Tsy 1.250 27 . . . . .118.85 0.75 119.3 104.6
Tsy 4.250 27 . . . . .115.07 1.03 115.4 97.9
Tsy 6.000 28 . . . .139.45 1.01 139.9 119.5
Tsy 4.750 30 . . . .121.63 1.11 122.0 103.0
Tsy 4.125 30 . . . .301.38 0.72 302.6 261.2
Tsy 4.250 32 . . . . .114.03 1.18 114.4 96.0
Tsy 4.250 36 . . . . .112.85 1.23 113.3 95.0
Tsy 4.750 38 . . . .121.71 1.24 122.2 102.8
Tsy 4.500 42 . . . . .116.19 0.00 116.2 98.9
% %
Wealth Management | Markets
28
The Forum
T
HE Liberal Democrats have spent
much of their conference getting
themselves into a sweat about the rich.
Both Nick Clegg and Danny Alexander
have signalled their reluctance to scrap the
top rate of income tax, with the latter
announcing the creation of 2,000 new tax
collectors to ensure compliance among
high earners. Dont expect that to yield
much of a return. The affluent are acting
rationally rather than illegally in reaction to
one of the highest marginal tax rates in
Europe.
I had hoped for a change in tone from the
business secretary, perhaps detailing how we
could extract ourselves from economic
gloom and stagnation, rather than
simply obsessing about how to dis-
tribute the pain in an era of aus-
terity. My hopes were largely
dashed. The eye-catching part of
Vince Cables speech in
Birmingham yesterday was his
onslaught against undeserved
executive pay. Echoing the Lib
Dems positioning that times
are tough and the successful
must pay their fair share,
Cable has launched a consul-
tation to get to the bottom of
why chief executives overall
remuneration packages have
become so spectacularly
more generous (rising about
fourfold in nominal terms,
from an average of 1m per
annum to 4.2m since 1998).
Without a corresponding
rise in company share prices
or the pay of the average
worker, Cable sees a strong
prima facie case for market
failure. He argues its not
just that the chief executives
of our leading companies
are fantastically well paid
its that it appears to be so
undeserved.
His consultation paper
floats a plethora of ideas greater sharehold-
er power, more transparent reporting mecha-
nisms and employee involvement on
remuneration committees. Such changes, the
business secretary surmises, could save share-
holders from their own apparent largesse and
naivety and would presumably see a drop in
top pay until Cable deemed that proper mar-
ket rates now prevailed.
But with due deference to the business sec-
retary, it is surely likely that if his ideas have
any substantial weight, they would have been
dreamt up by shareholders themselves by
now. So while shareholder resistance to high
pay has perhaps increased, it has not reached
levels of widespread, majority outrage.
The problem as with any form of grand
central planning is that the metrics that
Cable considers reasonable and obvious in
determining chief executive pay are actually
highly contestable. Zooming share value, high
dividends and growing profits may be down
to the brilliance of the chief executive. But,
similarly, in an ever-competitive market it
may be that a business miracle has been per-
formed simply by halting a slide. This isnt to
say that shareholders wont use certain meas-
urements to attempt to judge the perform-
ance of senior staff most of us are judged on
targets that arent wholly within our control
but a sense of a wider picture will also be
needed.
As Cable concedes, we are talking about a
microscopically small number of individuals.
Executive pay for FTSE 250 companies has
grown considerably less impressively (chief
executives now earn about 38 times UK medi-
an pay compared to 24 times median pay in
1998) and among Aim-listed firms, remunera-
tion has broadly tracked average pay since the
late 1990s.
The broader concern even if shareholders
latch on to Cables departmental consultation
paper with undisguised enthusiasm is how
much time and effort Liberal Democrat minis-
ters seem willing to devote to redistributive
measures and how little to making Britain an
attractive place to do business.
It is unarguable to the point of banal to
insist that the rich must pay their fair share.
The harder part is spelling out what that fair
share actually is. The top 1 per cent of earners
now contribute around a quarter of income
tax receipts and the top 10 per cent account
for more than half of this revenue. Is this too
much of a burden for those with broad shoul-
ders? Or not sufficient? If insufficient, how
high a proportion would the Liberal
Democrats like to see it rise to?
And whatever definition of a fair burden
they finally settle on, how do they react to the
top marginal rates of tax we find on our
doorstep? Presumably the fact that the high-
est rate of tax is below 50 per cent in all of
Germany, Italy, France and Spain must horrify
Lib Dem conference delegates. Unfairness
must be rampant among our trading partners.
Businesses and entrepreneurs react to hard
facts more than to political rhetoric. A side-
swipe at the super-affluent to appease Liberal
Democrat activists in a conference hall in
Birmingham is not going to lead to an imme-
diate brain drain from these shores.
It would, however, be refreshing if the busi-
ness secretary spent his next speech detailing
how he intends make the country a more
attractive place for the rich, bright and suc-
cessful to flock to rather than to be fleeced in
and how he is going to make it easier for
them to run profitable businesses when they
get here. Nobody doubts that the successful
should pay their fair share. If Cable was rather
more inclined to send out a millionaires are
welcome message, wed also have more of
them to share that burden.
Mark Littlewood is the former head of media for
the Liberal Democrats and is now director-general of
the Institute for Economic Affairs.
The rich must pay their fair
share. The harder part is
spelling out what that is.
A former Liberal Democrat
spin-doctor says Cables off
message on executive pay
theforum@cityam.com
MARK LITTLEWOOD
29
Online grocers
always struggle
with high costs,
says one analyst
Why Ocado isnt
delivering as the
markets hoped
W
HEN Ocado came to the market in
July 2010, to some (its investors) it
was a great opportunity to buy
into a growth online market with
a unique business model and amazing tech-
nology. The company had been going for ten
years and was just about to break through
the tipping point, which would lead profits
and returns to rise exponentially, augment-
ed by the building of a second warehouse in
the Midlands and justifying an even higher
valuation. However, to some commentators
myself included it was best summed up
by the jokey phrase Ocado begins with an
O, ends with an O and is worth O. We sim-
ply could not see how Ocado could ever gen-
erate a proper return on capital.
PAINFUL ECONOMICS
We felt then and still do that the eco-
nomics of home delivery of food just dont
stack up. Gross margins are low and costs
are high, with the cost of the last ten yards
being particularly painful.
The fact that only Tesco has ever made
money online in food (and this with its
much greater scale and a larger customer
base) and that some operators such as M&S
and Morrison are not even trading online,
tells its own story. However, the bulls won
the argument and the shares successfully
floated at 180p, albeit at lower levels than
had been earlier anticipated.
A year on and the shares languish at 118p,
so what has changed? What has changed is
that there have been significant down-
grades to every line in the profit and loss
statement most damagingly to long-term
forecasts and major changes to debt pro-
jections. Yesterdays third quarter sales
announcement brought even more down-
grades and this to a year that only has just
over two months to run.
To be fair, the company believes that once
its capacity constraints unwind and its new
210m warehouse opens, its economics will
be transformed. We too expect the econom-
ics to change, but for the worse. We expect
customer orders to underperform expecta-
tions and that the fall in average basket size
will accelerate, as Ocado delivers to more
and more customers outside the M25.
If we are right, then the shares have much
further to fall. Why? Because of the double
whammy effect that lower profits and more
realistic valuation metrics will have upon
the share price.
Concerning the latter, right now, the
shares are being supported by a nonsensical
belief that they deserve to trade on a par
with Amazon. This is just plain wrong.
Ocado is neither doing anything new
home delivery of food has been around
since Victorian times nor is it unique.
Value Ocado in line with the food retail aver-
age on enterprise value-to-sales ratio and the
shares more than halve again.
We dont think that a marginally prof-
itable distributor of Waitroses products
(and 150 Ocado own-label products) deserves
to trade at a premium to Sainsbury, or any
of the other food retailers.
Philip Dorgan works as a retail analyst for
Panmure Gordon.
ICB bright side
The ICB report was puerile: a
politically-inspired piece of finan-
cial vandalism. But with regulatory
damage both capped and
deferred, notwithstanding the dire
macro outlook and dysfunctional
political landscape, we still believe
that we are into a (bumpy) period
of UK bank share price recovery,
but one in which, in relative terms,
the quality names will continue
to lag behind.
Ian Gordon,
Evolution Securities
More cuts, please
I find myself agreeing with Ed
Balls when he rejects the absurd
claim that Britain is some kind of
safe haven and [must] plough on
regardless with a plan that is not
working. Indeed.
George Osborne plans to borrow
more over five years than Balls
Labour borrowed in 13 years.
Osborne must actually cut
sharply, not simply increase the
debt at a slower rate than Balls
would have done that is no cut.
Dan Tubb, BestInvest
Forensic Forum
Thank you for providing a forum
for forensic rather than emotion-
al debate. The more politicians
and the media rubbish indiscrimi-
nately our financial systems and
providers as untrustworthy and
undeserving in confidence, the
more they are likely to fail.
Simon Davis
Readers are invited to comment
on the web: cityam.com/forum;
by email: theforum@cityam.com;
and on Twitter: @cityamforum.
The best will be reprinted here.
RAPID RESPONSES
In association with
PHILIP DORGAN
BY ANTHONY J. EVANS
The Forum
T
HE Independent
Commission on
Banking (ICB)
has spoken, but
not too loudly and
with no real urgency.
Even if its main recom-
mendations are even-
tually adopted (such as
ring-fencing the retail
and investment arms
of banks and raising capital requirements), few
people feel that this will fix the banking sectors
problems.
Even if these measures work, the assumption
that investment banking is more risky than retail
banking not only oversimplifies the activities
that banks are engaged in but also rests on a sim-
plistic definition of risk. It suggests that risk is
not only measurable but that we can choose how
much of it to bear. I appreciate that this is stan-
dard portfolio theory, but it is wrong. We cant
say that one thing is more risky than another
only that different activities expose people to dif-
ferent types of risk. Bodies like the ICB needs to
shift from trying to impossibly reduce risk to
placing responsibility on those who are choosing
between different risks.
For example, ordinary depositors should not
be protected from risk they need to confront it.
It can seem counterintuitive, but the genuine
threat of bank runs is probably the best discipli-
nary device to prevent them from happening.
Regrettably, the ICB report failed to outline a
banking system that would make bank failures
more common and less catastrophic. I wanted to
see more prominence given to how the payments
system might survive a widescale liquidity crisis;
the speed at which depositors might reclaim
their assets in the event of a bank failure; and the
legal safeguards (such as living wills) that show
companies have thought about managing bank-
ruptcy. Or more importantly the incentives to
make it rational for banks to do this planning for
themselves.
By making arbitrary decisions about what
must stay within fences and what doesnt, or
about the level of equity capital that banks will
be required to keep, regulators make banking
more homogenous. Banks are already free to set
up their own ring fences, and a competitive sys-
tem would be one where they can experiment
with different ones. It is convenient to believe
that all banks failed during the credit crunch,
but the reality is subtler. Some banks did better
than others, and events vindicated those that
abstained from ballooning lending funded
through the short-term money market. That is
their competitive advantage, and using regula-
tions to deprive them of this opportunity to capi-
talise on it seems unfair. Just when the public
begin to sit up and take notice of what their
banks are doing, just when shareholders start to
pay attention to what their money is being
invested in, the regulators tell them to go back to
sleep.
The bottom line is that risk cannot be reduced;
it can only be transferred and disguised. All regu-
lations create clusters of errors by their nature
they harmonise behaviour and therefore
increase systemic dangers. Policy efforts need to
focus on reducing barriers to exit, making it eas-
ier for banks to fail, making the costs of failure
more visible and ensuring they fall on those who
make bad decisions bankers, regulators, or even
the public.
Anthony J. Evans is associate professor of economics at
ESCP Europe Business School in London, and Fulbright
scholar-in-residence at San Jose State University. His web-
site is www.anthonyjevans.com.
We need banks to fail
more often not less
Dandies and femme fatales:
a new wave of scent is here
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FIT IN
THE CITY
BY LAURA WILLIAMS,
FITNESS & DIET EXPERT
Get more out
of exercise
EXERCISE hit the headlines again last week:
new research from Loughborough University
found that it not only lowers levels of waistline-
enemy ghrelin (an appetite-stimulating hor-
mone), it also raises levels of peptide YY one
of the good guys that suppresses appetite. So if
youre looking to capitalise on the waistline ben-
efits of exercise, heres what you need to know:
l Make sure youre not over-fuelling for your
workout. A small snack should be plenty to see
you through the average workout. Hefty flap-
jacks and vats of sports drinks will invariably
mean youre ingesting way more cals than
youre burning off.
l Dont overestimate what youve burnt. A
staggering study at the University of Ottawa
found that walkers estimated theyd burnt an
average of 800 calories... in fact theyd burnt
around 200. To make matters worse, they later
ate 350 calories based on that miscalculation!
Its actually better to forget youve exercised
if youre looking to lose weight that way your
exercise cals can go some way to helping you
achieve the deficit required to drop a pound or
two (3,500 cals = one pound of fat).
l Exercise on empty. If youre really serious
about budging that spare tyre, try skipping the
workout snack full stop. The combination of
high adrenaline and low insulin makes for a
favourable fat burning ratio. Research has
found that intense exercise also prompts the
body to release fatty acids to be used as energy
in a similar way. Try exercising in this way first
thing in the morning for best results.
l Make mine an Americano. Pre-workout
caffeine can allow you to burn up to 10 per
cent more calories during your workout. It will
also help to delay fatigue and boost perform-
ance, both of which have an indirect calorie
effect going harder for longer will always be
better for the waistline.
l Bloomberg Square Mile, which I wrote
about last week, said of Sundays race: "Last
night's relay was phenomenal - 1,150 entrants
and an incredible atmosphere. And a great race
too - Macquarie Bank came in first, 12 seconds
ahead of Legal & General, who beat Barclays
Capital by a single second". Bring on the next
one!
www.laurawilliamsonline.co.uk, @laurafitness
Lifestyle | Grooming
EPISODE 28: GOOD MORNING MR. CASHMAN
I LOOSEN my tie and look at my
watch. 1.58am. I should have been
home six hours ago and in bed maybe
four hours ago. I certainly need to be
up again and on my way back here
within another four and a half hours.
I look at the debris littering the
banks boardroom. Chinese food. Pizza
boxes. The pizzas mostly went to the
PR advisors, who left early.
Lightweights. At the death we were
down to us, the client and the lawyers.
Well, you can never get rid of lawyers
when the clock is ticking. But at least
we have the valuations and deal struc-
ture nailed down now. Until we dont.
Even after twelve hours locked away in
here we could easily be going through
it all again within the week. Not some-
thing Ill tell Emma when I review the
nights activities.
Emma Aaagh.
I turn on my phone. I always insist
my guys have their phones turned off
in client meetings and I feel I should
lead from the front. Four messages.
The first is from Emma, 8.02, wonder-
ing where I am and when Ill be home.
Perfectly civilized. I prepare myself for
the next three messages, fearing pro-
gressive deterioration in her mood. But
the next is from Nick, saying hell call
back. The third too, Nicks slurred voice
barely audible above the hubbub of a
West End nightclub. The final message
is also from Nick, after midnight and
nothing more than a grunt, followed by
twenty seconds of rambled directions
to a taxi driver. Until the phone goes
dead.
Perhaps Emmas silence is ominous.
But surely shed or someone would
have called if shed gone into labour?
As I dash from the boardroom, my
chauffeur waiting downstairs, the
cleaners enter the boardroom. Good
morning, Mr Cashman.
City Dad will continue next Tuesday.
For past episodes, see www.cityam.com
CITY DAD
Autumn fragrance
is bold and daring,
says Zoe Strimpel
I
N the world of scent, its all go.
Europes top perfumers have
unleashed a cascade of fragrances
this autumn that are bold, man-
nered and exciting.
Men are being asked to unleash their
inner dandy leather, tobacco and deep
fruit are reminiscent of the salons and
gentlemens clubs of yore. But were not
talking new man dandy; its very
much a return to a pre-metrosexual
masculinity, with evocations of virility
and power.
For women, its a walk on the wild
side: jamborees of punchy citris, intoxi-
cating floral notes and sensual base
notes are a paen to the femme fatale
and her dark side.
ACCORD 119, CARON
Caron is one of Pariss oldest and
most prestigious perfume houses.
This one is a game of hide-and-seek, a
subtle balance of Bulgarian rose, jas-
mine, Indonesian patchouli, sparkling
lemon zest and exquisitely sweet
blackberry. 105, Fortum & Mason
MISTER
MARVELOUS, BYREDO
A modern twist on a classic cologne
from the top Swedish perfume house.
Citrus top notes give edge to base
notes of lavender and bamboo.
Confident and masculine. 130,
byredo.com or Liberty.
PARDON, NASOMATTO
The supremely talented perfumer
Alessandro Gualtieri has unleashed a
powerhouse of a scent. Warm amber
and leather evoke the salons of fin de
siecle Paris and the Victorian gentle-
man's club noble, gracious and vir-
ile. 108, averyfine
perfumeries.com/uk
O, BLOOD CONCEPT
New from Milan, this edgy range
seeks to connect with the very
flow of life. Scents are named
after blood types: O, the first, is
full of the scents of Africa: rich
and earthy. A, B and AB are all
different; the latter the most
modern, full of slate and aqua.
98 at Liberty
WILD TOBACCO,
ILLUMINUM
British perfumer Michael Boadi's mini-
malist luxury fragrances are already
the stuff of legend and this smooth and
distinguished scent has already been
snapped up by Leonardo di Caprio.
Sage and clove are top notes, with
cedar and tobacco giving sensuousness.
70, illuminumfragrancelounge.com
LE VAINQUEUR,
RANCE 1795
First presented to Napoleon in
1795, the scents top notes are
nutmeg, ginger, melon; lavender
and jasmine lie below, with
leather and musk at base. 59,
roullierwhite.com
TUBEREUSE,
MONA DI ORIO
A twighlight tuberose that opens
with a beautiful and peppery burst of
bergamot creamy notes, before being
tamed by benzoin, amber, heliotrope
and coconut. 145, lessenteurs.com
IMMORTELLE MARILYN, NEZ A NEZ
Soft, feminine, eternal (the clues in the name), inspired by
the pale immortelle flower (as well as the actress), with
raspberry and hazelnut on top, made sensual with musk and
iris. 115, averyfineperfumeries.com
POP, COSTUME
NATIONAL
Inspired by the art of
Andy Warhol and cre-
ated by perfume
demi-god Dominique
Ropion, POP is bright
and happy: pink
grapefruit, raspberry
and cassis are at the
top and patchouli,
ambergris and cash-
meran at the base.
67 at Selfridges
VENGEANCE
EXTREME, JULIET
HAS A GUN
Perfumer Romano Ricci's hymn
to good girls gone bad an
intense chypre which draws its
sensuality from a voluptuous
dose of patchouli, Bulgarian
rose and vanilla. Behold the
darker side of female nature.
95 at Harrods.
MEN
W
O
M
E
N
CUT
45 Park Lane, W1K 1PN,
www.45parklane.com, 020 7493 4545
FOOD hhhhi
SERVICE hhhii
ATMOSPHERE hhhhi
Cost per person without wine: 70
I
N the past, finding high-quality steak
in London meant ordering plump
filet mignon in a superior French
restaurant and hoping the chef knew
what to do with it. Thats all changed in
the last few years. Gaucho had shown
there was a market for steakhouse chains
that didnt have Angus or Aberdeen in the
title (Lord knows there never seemed
much of a market for places that did). But
it is Hawksmoor in Spitalfields and
Goodman in Mayfair that have demon-
strated how expert sourcing, superb cook-
ing and youthful flair can make steak
exciting and fashionable.
Now the latter places are both due to
open third venues, Richard Carings
Caprice Holdings will soon open a steak
restaurant in Grosvenor Square and Park
Lanes newest glitzy hotel has a steak-spe-
cialising dining room as its focal point.
Its the creation of Wolfgang Puck, a gre-
garious Austrian who is one of Americas
most celebrated celebrity chefs and restau-
rateurs. He cooks for the Oscars; hes pally
with Hollywoods biggest stars; his empire
of high-gloss restaurants, stretching from
LA to Singapore, makes Gordon Ramsay
look work-shy. And now here he is in
London with his best US chefs in tow
opening a steak restaurant in 45 Park Lane,
the Dorchesters new boutique sister hotel.
Really its boutique only in that it has
less than 50 rooms and an address for a
name; other than that its pure Hollywood.
A gleaming, glossy slab of anti-austerity
extravagance, with a sumptuous lobby
that gives way directly onto Pucks dining
room.
A word to the wise: ask to be seated at
the far end of the restaurant. We were
bunged next to a curtain that half-sepa-
rates the dining room from the lobby. My
view, just past the lobby, was of a couple of
chaps in shorts reclining with their lap-
tops on the lobbys grand red sofas, flip
Making the CUT in style
HIGH TIMBER, 8 High Timber Street, EC4V 3PA
City A.M. favourite High Timber has several things to
recommend it. One: its Thames-side views. Two: its
wonderful South African wine collection, presided
over by the exuberant Neleen Strauss. Three: its
steak. These are juicy, chargrilled slabs, served with
terrific sauces on wooden boards with sides of onion
rings and roast tomatoes. Perfect with a big red.
THE DOOR, 33 Cornhill, EC3V 3ND
Now with a restaurant in the City as well as
Gloucester Road, Square Milers looking for a great
piece of red meat have a new option. This is also an
oyster bar: we recommend starting with half a
dozen and a glass of champagne before heading
inside for a fillet of something Scottish or
American.
GOODMAN, Maddox Street (Mayfair), Old Jewry
(Ctiy) and soon Canary Wharf
Considered by connoisseurs to be the home of the
best beef in London, this Russian-owned success
story is set to open in Canary Wharf soon too, as
the Citys love affair for vast hanging rooms and
dusky, masculine interiors continues apace. Good
burgers, chicken and fish, too.
flops distributed around the floor.
Sometimes, if they hitched their legs up
just so on the sofa, I could catch sight of
their underwear too as I glanced up from
my food. Like, no thanks.
Anyway, flip flops and Calvins aside, its
a sparkly, spangly kind of a place. The table
tops are polished, pink-tinged mirrors, like
great sheets of rose gold; the chandeliers
look like sci-fi cloudbursts; the music is,
well, much as youd expect in a Hard Rock
Caf as it happens, though this is apparent-
ly Pucks personal playlist.
The menu is like a global index of top-
notch beef: USDA prime cuts from
Arkansas, wagyu from Down Under or
from Chile, Casterbridge Angus from
Devon. Its all cooked over hard wood and
charcoal on a grill of Pucks own design,
then singed under another grill burning at
650 degrees.
While we were inspecting the menu, a
strange thing happened. Our waiter
brought us little white plates, for the
amuse bouche, sir. Okay, Im not that
fussed by having my bouche amused, par-
ticularly when Ive got a lot of steak to
force down it, but if you insist. We made
our orders, chewed on some jolly good
bread and watched as the waiter glided in,
silently removed the plates and glided
away again. I summoned a more senior
looking chap. So, the amuse bouche.?
Sorry sir, miscommunication, he said
ruefully. But, er, can I point out the beau-
tiful Damien Hirst butterfly pictures on
the wall?
Gee, thanks. Our starters arrived.
Choosing them had been problematic
theres 13 to pick from, all priced between
10 and 18 (well, this is Park Lane), cover-
ing rather diverse bases, from sushi to
oxtail broth to bone marrow flan. I went
for some soft, perfectly cooked veal tongue,
accompanied by artichokes and a peppery
salsa verde. My friend had Pucks signature
starter from his original Californian
restaurant, Spago a hearty pile of crab
and lobster in a tomato and horseradish
sauce, which tasted for all the world like a
prawn cocktail.
For steaks, I enjoyed the tasting dish of
three different New York sirloins:
American, English and some Aussie
wagyu, though initially no one bothered to
explain which was which (the maitred
finally appeared and took care of this). The
corn-fed USDA was sweet and unctuous;
the wagyu was spongily soft with flavour
that lingered marvellously; the grass-fed
English was, Im happy to say, my
favourite earthy, austere and rather glo-
rious.
My friends USDA rib-eye was every-
thing it should have been, too: huge, even-
ly pink throughout, sweet as a sugar lump
and squelching with bloody juice. The
chips and onion rings were expertly
made, but had gone cool.
Look, it really depends what youre
after in a steak restaurant. No doubt the
service will slicken up you dont get to
Pucks level without knowing how to
ensure a well-running dining room. If you
want glamour, lavishness, buzz and a vast
bill, CUT does the business. If you want a
THREE OTHERS
ZOE STRIMPEL
IN A NUTSHELL:
Extremely good beef cooked by people who know what theyre
doing in a location thats about as glamorous, Hollywood-style, as
any in London. Certainly when it comes to steak, this is where the
super-celebs will go. The Oscars meet the Dorchester a vibe that
not everyone will like (or be able to afford).
The most
glamorous steak-
house in the UK.
Hollywoods top chef,
Wolfgang Puck, has
brought his stardust
to Park Lane
HEAD SOMMELIER AND MANAGER OF
LUTYENS RESTAURANT
ANDREW CONNOR
QUAFFERS CORNER
A
UTUMNS a busy time for the wine trade
and the last couple of weeks have been
hectic with several tastings a day. The less
glamorous side of the business is tasting
interminable numbers of similar wines in order to
fill a certain slot on the wine-list, the sub 40
Bourgogne Rouge for example, or the Pinot
Grigio for the by-the-glass selection.
Every so often, however, theres a tasting thats
a bit more exciting, and last week it was Croatian
wines. Croatia is a nation with a long and proud
history of wine-making (in fact, it pretty much
single-handedly built the New Zealand wine
industry) and its eager to showcase its wines in
the English market you can find them at
Waitrose, Sipp on Brompton Road and Slurp
Wines. The grape varieties have scary foreign
looking names, all consonants and strange punc-
tuation (Graevina, Grk, Dobrii) and so most
people, who I imagine would enjoy them if given
the chance, will never try them. Its a familiar
problem for countries (Portugal and Greece are
another two that spring to mind) who, com-
mendably, stick with their indigenous varieties
rather than join the Francophone mainstream.
When times are tough people become less
adventurous in their choice of wines. Whenever
I read in the paper that the markets are down I
know Ill be selling only Chablis and Sancerre,
Claret and Crozes-Hermitage. Wine becomes a
comfort blanket, an island of security in an uncer-
tain world. But sometimes you need to embrace
the new. What are you really risking when you try
a new type of wine?
So embrace novelty, go out this week and
drink a bottle of Croatian wine. Take a deep
breath, pass on the Sauvignon Blanc and drink a
Malvasia Istriana, put down the Shiraz and pick
up a Plavac Mali. Not only will you be supporting
a dynamic and exciting industry but youll be
bringing some adventure into your life.
Follow Andrew on Twitter
@LutyensWine; www.lutyens-restaurant.com
Croatian wine:
surprise gem of
Europes crop
WORDS BY
TIMOTHY BARBER
T
E
R
R
E
S
T
R
I
A
L
THE BOMB SQUAD
BBC1, 10.35PM
In the second of the two-part
documentary, a team is dropped into
an area where an insurgent has
planted an explosive device.
REAL FOOD FAMILY COOK OFF
CHANNEL5, 7.30PM
New series. Matt Dawson and Lisa
Faulkner invite two Portsmouth
families into their mobile kitchen for
this cookery contest.
EMMERDALE
ITV1, 7PM
Nicola panics after waking up in
Declans bed with Jimmy, and the pair
sheepishly head downstairs to explain
themselves to Katie.
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmSoccer Special 10.30pm
Revista De La Liga 11.30pm
Football Asia 12amFootballs
Greatest 12.30amCarling Cup
Football 2amRevista De La Liga
3amManchester United Premier
Cup 4amCarling Cup Football
5.30am-6amFootballs Greatest
SKY SPORTS 2
7pmFootball Asia 7.30pmLive
Carling Cup Football 10pm
Manchester United Premier Cup
11pmSports Unlimited 12am
International Bowls 2am-3amF3
Euroseries
SKY SPORTS 3
7pmCycle Sports World 7.30pm
Live Greyhound Racing 10pm
Golfing World 11pmEuropean
Seniors Tour Golf 12amChallenge
Series Golf 12.30amLadies
European Tour Golf
1.30am-3.30amDavis Cup Tennis
BRITISH EUROSPORT
6.30pmMotoGP 8pmCycling
9.30pmHorse Racing Time 10pm
GT Academy: Road to Dubai
10.15pmWorld Series by Renault
10.45pmTest Drive 11.45pm
Inside Racing 12.15am-12.30am
WATTS
ESPN
6.30pmEredivisie Review Show
7.30pmESPN Kicks: Serie A
7.45pmLive Serie A: Novara v
Inter Milan (Kick-off 7.45pm).
9.45pmESPN Kicks: Scottish
Premier League 10pmPremier
League Review: A look back at
recent fixtures. 11pmRussian
Premier League Review11.30pm
ESPN Press Pass 12amAFL
Review Show1amESPN Kicks:
Premier League 1.15amPlanet
Speed 1.45amBundesliga Review
Show3amESPN Game of the
Week 3.30amPremier League
Review4.30amEredivisie Review
Show5.30am-6amRussian
Premier League Review
SKY LIVING
7pmCriminal Minds 8pmBritain &
Irelands Next Top Model 9pm
Pushy & Proud 10pmCriminal
Minds 11pmBones 12amJerry
Bruckheimers Chase 1amCSI
1.50amMaury 3.30amBones
4.20amNothing to Declare
5.10am-6amJerry Springer
BBC THREE
7pmTotal Wipeout 8pmYoung,
Dumb and Living Off Mum9pm
Dont Tell the Bride 10pm
EastEnders 10.30pmWilfred
10.55pmFamily Guy 11.40pm
Dont Tell the Bride 12.40am
American Dad! 1.25amWilfred
1.45amYoung Soldiers 2.45am
Young, Dumb and Living Off Mum
3.45amUnderage and Pregnant
4.15am-5.15amMy Forced
Unwanted Wedding
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmMade in Chelsea
9pmSmallville 10pmThe
Cleveland Show11.05pm
Shameless: Mickey gives Mimi an
ultimatum. 12.50amThe Big Bang
Theory 1.40amScrubs 2.25am
How I Met Your Mother 2.50am
Reaper 3.35amGlee 4.20am-6am
Switched
HISTORY
7pmThe Aztec Massacre 8pm
American Pickers 9pmI Am Alive:
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Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Legal capital of
Bolivia (5)
4 Major religion of
the world (5)
7 Small pampered
canine (6)
10 Measure (out) (4)
12 Get back (8)
13 Autonomous republic
of Ukraine, on the
Black Sea (6)
14 Equipment for
a horse (4)
16 Bitter sweet (4)
19 Coincidence, accord (6)
22 Leading caption of a
newspaper article (8)
23 Sleeping places (4)
24 Motor (6)
25 Cows milk-gland (5)
26 Very poor,
impoverished (5)
DOWN
1 Make amorous
advances towards (7)
2 Island in the Bay
of Naples (5)
3 Give expression
to feelings (5)
5 Unspecied item (9)
6 Ancient Mexican
civilisation (5)
8 Small cofee cup (9)
9 Tiny grain, of sugar
for instance (7)
11 Ms Herzigova,
supermodel (3)
15 John F ___, former
US president (7)
17 Having the leading
position (5)
18 Crimson (3)
20 Fine strong silky
fabric (5)
21 Grab roughly (5)
C
P
R
M
A N
I
A
O
4
4

4

C C D A M O U R
H O L D A L L N A
U A W E M U V
T H I R D C A S T E
E M A L I R N
A S C E N S I O N
L K K I N G M
A S H E N N E R V E
W A T E K E A
N I W H I T S U N
S O L E S N S T
9 6 7 8 2 4 1 9
2 3 1 7 1 2 3 8
8 2 9 2 3 1
3 1 6 9 4 8
1 9 6 6 7 1
1 6 4 7 8 2 5 9 3
6 9 8 4 1 3
2 3 1 7 9 6
9 8 7 1 8 9
1 8 5 7 3 1 2 5
2 6 7 9 5 9 7 8
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
SENTIMENT
Lifestyle | TV&Games
CITYA.M. 20 SEPTEMBER 2011 32
T
URNING pro is always an enor-
mous step in a young golfers
career but in Tom Lewis case
the timing of his decision to do
so makes perfect sense.
The 20-year-old (right) impressed
everyone with the way he conducted
himself at The Open, not least his
playing partner Tom Watson, and
hes got all the attributes to have a
wonderful career in the game.
He almost dismissed his achieve-
ment of winning the silver medal in
the belief he could have pushed even-
tual winner Darren Clarke further
and its that competitiveness and
level of ambition that will stand him
in good stead.
Hell be focused on playing in the
European Tour Qualifying School
next year, which will provide him
with an excellent grounding, but its
not inconceivable, such is his talent
and the opportunities that will come
his way, that hell be playing with the
big boys in 2012.
Hed see that as an enormous
bonus, but having been granted an
invite to the Alfred Dunhill Links
next month theres enough prize
money on offer there for him to fol-
low in the footsteps of Rory
McIlroy, who finished third in
2007 and turned pro almost
immediately afterwards.
Like Lewis, Justin Rose shot to
prominence as a young amateur
at The Open back in 1998 and it
was great to see him return to
winning ways in America.
With all the success British
golf has enjoyed this year
Rose was in danger of becom-
ing something of a forgotten
man. But a gripping vic-
tory at the BMW
Championship has
shot him back to
prominence and
back into the
worlds top 20,
which is where
he belongs.
Id go as far as to say its the
biggest win of his career, not
just because of the size of the
tournament, but because of
the way he had to dig deep to
keep hold of his lead.
Winning like that will do
his confidence no end of
good and I expect him to
be competing for the big
end of season prizes.
Its been a good few
weeks for me too on the
Seniors Tour, and its now
back-to-back top five finish-
es after my performance in
Prague, where I played beau-
tifully. Im still not satisfied
with my putting but hopeful-
ly I can carry my recent
form into the event in
Cannes this week.
Sport
FOOTBALL COMMENT
TREVOR STEVEN
GOLF COMMENT
SAM TORRANCE
F
ERNANDO Torres looked like the
devastating player of old as he
burst through Manchester
Uniteds defence and waltzed
around David de Gea on Sunday.
Unfortunately for Chelsea, it was
the baffling Torres of now who took
aim at the empty net from all of
seven yards and diverted the ball into
a gleeful crowd.
It was as bad a miss as I have seen
at the very highest level and unbeliev-
able from a player of the World Cup-
winning strikers stature.
The scarcely credible incident cap-
tured how bankrupt of confidence
Torres currently is and has worrying
implications for the clubs silverware
ambitions.
Perversely it came on an otherwise
encouraging afternoon for the for-
mer Liverpool player, who had earlier
scored his first goal of the season.
Torres was also decent in midweek
against Champions League oppo-
nents Bayer Leverkusen, and at Stoke
a few weeks ago.
But equally he has been poor in
other fixtures this term, and what
really confuses me is how his form is
fluctuating so greatly even within
one match.
It is as if each good thing he does
sparks an improvement in his play for
10 minutes but every setback puts
him in the doldrums for 20.
MALAISE
No longer is he being aggressive,
attacking the near post, sliding in
and going in where it hurts as
Uniteds Javier Hernandez is doing
week-in, week-out to great effect.
Instead he is waiting for pull-backs
and attempting overhead kicks.
Clearly, he is struggling to shake off
the demons that have plagued him
since his 50m transfer from Anfield
in January.
But Roman Abramovich forked out
for him to take them to the next level
and its vital to Chelsea that he does
emerge from his malaise soon.
Had he scored that now-infamous
chance they would have been in with
a real shout of seeing the comeback
all the way through to 3-3. Instead the
Blues lost further ground to title
rivals United, who are buzzing.
New players, like the excellent Juan
Mata, are still bedding in and as that
understanding develops it will help
the team get the best out of Torres.
He would also benefit from stick-
ing with the same formation that
Andre Villas-Boas deployed at Old
Trafford, with two wide men and
freedom to chase all the way across
the front line.
More than anything, manager
Andre Villas-Boas will recognise that
Torres needs an unbroken sequence
of starts. Because if Chelsea are going
to rein in Manchesters runaway top
two, the forlorn Spaniard will need a
run of games to make his stuttering
improvements consistent.
Tormented Torres baffles with his
inconsistency but needs run in side
5. Ryan Giggs
(Man Utd v Arsenal, Feb 2003)
If crashing out of the FA Cup to Uniteds
then-biggest rivals Arsenal was not bad
enough, Giggs also suffered personal
humiliation by spooning over with his
weaker right foot with the goal begging.
4. Kanu
(WBA v Middlesbrough, Nov 2004)
The Nigerian is nothing if not unpre-
dictable, and few could have foreseen he
would scoop Geoff Horsfields low cross
over the crossbar from about a yard out.
3. Rocky Baptiste (Harrow Borough v
Waltham Abbey, Nov 2009)
The non-league hero is guilty of arguably
the worst of the lot skewing wide from
virtually on the line but well, its non-
league. What do you expect?
2. Diego Forlan
(Man Utd v Juventus, Aug 2003)
Few who witnessed Forlans star turns
for Uruguay at last years World Cup
would recognise the player who pounced
on a goalkeeping howler and advanced
on the net only to slice wide.
1. Ronny Rosenthal
(Liverpool v Aston Villa, Sep 1992)
The Israeli rounds the keeper and even
takes a touch before, dead in front of
goal, improbably hitting the bar. The miss
against which all others are judged.
FIVE MORE | OPEN GOAL MISSES
Results
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email sport@cityam.com
SPORT | IN BRIEF
Gomes set for Spurs return
FOOTBALL: Out of favour Tottenham
goalkeeper Heurelho Gomes will return
to the starting line-up tonight for the
first time since being relegated to third
choice against Stoke in the Carling Cup.
The Brazilian has fallen down the peck-
ing order since the summer arrival of
Brad Friedel. I dont think he is happy
here, we dont want to kid ourselves,
said Redknapp. He wants to play in the
World Cup in Brazil. Obviously to do
that he needs to be playing so its going
to be a problem. Defender William
Gallas and midfielder Sandro are also
in line for their first starts of the sea-
son after recovering from injury.
Trio set for Arsenal debuts
FOOTBALL: South Korean striker Park
Ju Young, Japanese forward Ryo
Miyaichi and fellow 18-year-old Alex
Oxlade-Chamberlain are all expected to
make their full debuts for Arsenal in
the Carling Cup against Shrewsbury
tonight. Meanwhile, skipper Robin van
Persie believes Arsenal still have time
to turn their season around despite the
clubs worst league start for 58 years.
There is lots of time, but at some point
you need to pick yourself up and prove
what you are capable of, he said.
Real announce record turnover
FOOTBALL: Spanish giants Real
Madrid have claimed a new football
world record for annual revenue with
the release of its financial figures for
the year ending June 30, 2011. The side
managed by Jose Mourinho reported
that turnover, before the transfer of
players, increased from 385.5m
2009-10 to 418.4m in 2010-11.
Turning pro is the right move for Lewis
S
ATURDAYS match at home to
Cornish Pirates was a mixed
affair. Losing 23-25 to team of
their calibre is no disgrace, but
we didnt start the game with our
usual intensity, so we were down at
half-time. However, I was immensely
proud of the way we dragged the
match back into our control during
the second half and the fact that we
were all so disappointed to lose it at
the death speaks volumes for the
pressure we put them under.
Now for our debut British and Irish
Cup match against local rivals
London Welsh tomorrow (7.30pm
kick-off) world rugbys oldest exiles
clash, dating back to 1885. We have
huge respect for their professional-
ism and strength in depth so we are
all looking forward to the clash.
Following Saturdays game, I
watched Englands match against
Georgia on Sunday. Once again they
won without playing their best, but it
was great to see an improvement in
their performance. Hopefully the vic-
tory will calm some of the sensation-
alism around the squad and their
choice of evening entertainment.
It fascinates me when a story like
this comes up. The media demands
greater access to players without the
sterilised media-trained answers we
have become used to. However, from
the playing side it is frustrating
because as soon as certain sections
get that opportunity, they can be
quite negative in their reporting.
I feel one of the great things about
rugby is it encourages camaraderie
and enjoyment. The social side is as
vital to creating a cohesive unit as
more organised team-building initia-
tives and that sees you through the
close games. That happens at interna-
tional level and at Championship
level here at London Scottish too.
A management team cant give a
group of players very specific and reg-
imented rules for their off-field activ-
ities and then expect the same
players to be leaders and make their
own decisions on the pitch. Our remit
at Scottish is to guide the players, give
them parameters in which to work in
and let them work out what the cor-
rect decisions are for themselves.
Simon Amor is Head Coach at London
Scottish. Their next fixture is at home
tomorrow against London Welsh.
Sport
34
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MORE NEWS
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www.cityam.com
Media should lay off England night out
ENGLAND have called Leicester No8
Tom Waldrom into their World Cup
squad as concerns over the fitness of
embattled skipper Lewis Moody
intensify.
Officially, the uncapped Kiwi-born
Waldrom, who only discovered last
season that he was eligible to repre-
sent England through his grand-
mother, has been drafted in as cover
for Nick Easter.
The Harlequins stalwart missed
Englands 41-10 victory over Georgia
on Sunday, but with Moody having
lasted just 58 minutes of his come-
back appearance in Dunedin, it
appears that manager Martin
Johnson is attempting to cater for a
worst case scenario with regards to
his captains fitness.
Moody missed the previous week-
ends victory over Argentina after suf-
fering knee ligament damage in
Englands first warm-up internation-
al against Wales on 6 August.
Moreover, the Bath flanker has
played fewer than five full matches
since initially injuring his knee in a
Heineken Cup match in January,
which ruled him out of the entire Six
Nations campaign.
Johnson said yesterday: Nick
Easter is still suffering from a sore
back so we will be bringing Thomas
out as temporary cover.
Waldrom is not the official replace-
ment for prop Andrew Sheridan. The
Sale loosehead suffered a tourna-
ment-ending shoulder injury in
Englands 13-9 victory over Argentina
but has yet to be replaced in
Johnsons squad.
Meanwhile, prop Matt Stevens suf-
fered an ankle injury against Georgia
while wing Chris Ashton hyper-
extended his elbow in scoring his sec-
ond try, although both players were
confident the problems were not seri-
ous.
Attack coach Brian Smith also
announced yesterday that wing Mark
Cueto will be available for selection
against Romania after overcoming a
lower back problem which ruled him
out of the opening two pool matches.
Smith also revealed he and the rest
of the selectors face a difficult choice
at fly-half between Jonny Wilkinson
and Toby Flood once the knockout
stages commence.
The battle between Englands
World Cup winning No10 and his for-
mer Newcastle protege has represent-
ed one of the most intriguing sub
plots of the Red Roses campaign thus
far.
Flood was one of the better per-
formers in Englands laboured win
over Georgia, taking over from
Wilkinson, who endured something
of a personal nightmare, particularly
with the boot, against Argentina.
Its a healthy competitive environ-
ment, said Smith. I thought Tobys
decision-making [against Georgia]
was very good, his line-kicking was
outstanding and he produced a very
good performance.
Physically, theyre different.
Floodys a taller player, he stands flat-
ter, theyre both very good distribu-
tors, they both kick the ball very well
and theyve both got very good organ-
isational skills.
Wilko is more compact, plays
deeper and likes to run on to the ball.
Jonnys got more experience and hes
won a World Cup. If your life depend-
ed on it, youd throw him the ball to
kick a goal.
Flood, himself, meanwhile, yester-
day joined Johnson and forward
James Haskell in calling for a more
composed performance against
Romania on Saturday.
He said: Were probably not as
smart or as savvy as wed want to be
at the moment. Were doing things
that are just a bit naive.
Fears for Moody as
Waldrom is called up
BY JAMES GOLDMAN
RUGBY UNION
Uncapped Leicester
No8 drafted in as
Johnson attempts to
cover all of his bases
RUGBY UNION COMMENT
SIMON AMOR
RACING lost one of its best-loved char-
acters yesterday when Ginger McCain,
former trainer of Red Rum and a four-
time Grand National winner, died
aged 80.
McCain, whose success at Aintree
made him synonymous with the race,
passed away just two days short of his
81st birthday following a battle with
cancer.
A taxi driver from Southport,
McCain forged his own path in racing
and found fame with Red Rum,
whom he saddled to a hat-trick of
National triumphs during the 1970s.
McCain became only the second
trainer to win the famous steeple-
chase four times when Amberleigh
House triumphed in 2004.
His son, a jockey-turned-trainer,
continued the family tradition earlier
this year when he saddled National
winner Ballabriggs.
What he achieved with Red Rum
was amazing, said champion jockey
Tony McCoy. I know how difficult it
is to win one Grand National and it
looks impossible to win two.
Amberleigh House owner John
Halewood added: I remember him
not just for the horses we had togeth-
er, but also for the great fun we
shared. It is a very sad end of an era.
He is a true legend.
Jenny Pitman, the first woman to
train a National winner with Corbiere
in 1983, called McCain irreplace-
able. Gingers words when Red Rum
died come to mind Well miss the
old bugger, she added.
Former racing commentator Peter
OSullevan said: It was a career of
remarkable achievement. He will
always be remembered for Red Rum
and rightly so.
Racing in
mourning at
passing of
Mr Aintree
LONDON 2012 organisers are set to
provoke a late scramble for tickets by
holding back more than a million
extra seats until next year.
The first batch of tickets for next
summers Olympic Games sold out in
the summer with the exception of
the football competition.
But thousands more spaces are
expected to be freed up in even the
most popular events, including the
opening ceremonies, when the final
seating plans are completed.
It had been hoped the sale would
take place in December, but April is
now thought to be the earliest possi-
ble date.
Football tickets will go back on sale
in time for Christmas, with plans in
place for an early-December release.
A London 2012 spokesperson said:
The remaining one million Olympic
tickets, to all sports, will go on sale to
the British public next year from the
contingency seats, once venues are
tested and licensed, and operational
plans are completed.
The original ticketing process
attracted a huge response, with
around two in three applications fail-
ing due to oversubscription.
Paralympics tickets went on sale
earlier this month, with organisers
reporting high demand ahead of the
deadline for applications on Monday
26 September.
London 2012 set for tickets scramble
BRITISH No1 Andy Murray claims he
would give serious consideration to
taking strike action should calls for a
change in the scheduling of the sport
fall on deaf ears.
Leading players have voiced their
concerns over a punishing schedule
which, for example, last week saw
world No2 Rafael Nadal asked to play
three matches at the US Open on con-
secutive days.
The Spaniard was granted a day off
before his four hour epic in the final
against Novak Djokovic, but just four
days later he was back in Davis Cup
action for his country.
Murray revealed he and some of
his fellow players are to meet in
Shanghai next month to discuss their
next move and refused to rule out the
threat of going on strike.
He said: Its a possibility. I know
from speaking to some players they're
not afraid of doing that [striking].
Let's hope it doesnt come to that but
Im sure the players will consider it.
Asked whether the subject of a
strike or boycott will be mentioned
during the meeting in China, he con-
tinued: Yes I think so. We just want
things to change, really small things.
The president of the International
Tennis Federation, Francesco Ricci
Bitti, maintained last week that com-
plaints by Nadal over the Davis cup
scheduling were inconsistent,
recalling that players voted for the
current dates, against the ITFs wish-
es, back in 2009.
Murray refuses to rule out
prospect of strike action
BY JAMES GOLDMAN
TENNIS
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