Cityam 2012-03-19

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client cash
SPREAD-BETTING firm WorldSpreads
was forced into administration yester-
day after the discovery of accounting
irregularities proved too serious to
avoid collapse.
Thousands of clients stand to lose
out after the Financial Services
Authority (FSA) warned last night
that there could be a shortfall in the
client money accounts but said it
will will return as much cash as pos-
sible directly to each client as soon as
practicable.
The company is thought to be short
of millions in client funds, although
up to 50,000 in losses per account
could be covered by the industry-fund-
ed Financial Service Compensation
Scheme.
The collapse of the AIM-listed bet-
ting firm makes it only the third firm
ever to go into the FSAs new special
administration regime, a winding-up
scheme set up in 2011 for financial
firms. The scheme aims to ease out col-
lapsed companies with minimal dis-
ruption to market infrastructure, but
has yet to be tested by the collapse of a
structurally important too big to fail
organisation.
Shares in WorldSpreads had to be
suspended on Friday following the
sudden resignation of its founder and
chief executive Conor Foley last week.
Shortly before its administration,
which is being handled by KPMG, the
Dublin-based firm had already given
investors a profit-warning despite
strong revenue growth.
BY JULIET SAMUEL
SPREAD BETTING
Prime Minister David Cameron wants road repairs but not tolls
ROAD PRICING and greater use of toll
roads could become a reality as the
government seeks to find ways to
entice the private sector to invest more
in infrastructure.
David Cameron will today launch a
new study into the financing and own-
ership of Britains roads, arguing the
country urgently needs to repair
the decades-long degradation of our
national infrastructure. He will call
for privately built roads but insist
there will be no tolls on existing roads.
The National Association of Pension
Funds is already working with the gov-
ernment to find a suitable model to
tempt its members to invest some of
their 800bn of assets in infrastruc-
ture the long-term nature of such
investment could provide a steady
income stream matching pension
funds liabilities.
The Prime Minister is speaking two
days ahead of the budget, which is set
to see the threshold at which workers
start paying income tax raised more
quickly than previously planned.
Speculation was also widespread last
night that the 50p top rate of income
tax will be lowered to 45p.
And chancellor George Osborne said
yesterday that Sunday trading hours
will temporarily be relaxed during the
Olympic Games to make the most of
the influx of visitors to London.
Reacting to this mornings
announcement, The Institution of
BY TIM WALLACE
UK ECONOMY
www.cityam.com Issue 1,594 Monday 19 March 2012 FREE

NO WELLIES
REQUIRED
Civil Engineers welcomed Camerons
plan for increased investment as fur-
ther evidence of Governments com-
mitment to infrastructure forming a
central plank of the plan for growth.
Cameron will claim his govern-
ment has worked hard to protect
capital spending, but that the public
sector does not have the cash to spare
on more projects.
In an effort to boost revenues, the
chancellor will also announce on
Wednesday the introduction of a gen-
eral anti-abuse rule (GAAR), prevent-
ing firms or individuals creating
aggressive schemes to dodge taxes.
A government-commissioned report
from Graeme Aaronson QC, published
in November, argued that such a rule
would deter contrived and artificial
schemes which make a mockery of
the will of parliament, boosting the
economy by creating a level playing
field for all businesses and making the
tax system more predictable.
The Treasury is also taking on the
assets of the Post Offices pension
scheme, which will add around 28bn
to the governments balance sheets
and appear to make a sizeable dent in
the years fiscal deficit. However, offi-
cial accounting methods rules do not
include the liabilities on the other side
of the balance sheet, which amount to
over 30bn in future pension payouts.
As a result, George Osborne is
expected to resist any pressure to
spend the apparent windfall, as the
pension fund as a whole is in a large
deficit which the Treasury will have to
pay for in the future.
MORE: ALLISTER HEATH, P2; P4-5
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30/01/2012 till 26/02/2012 is 98,573
CAMERON:WE NEED
PRIVATISED ROADS
BUSINESS WITH PERSONALITY
MAKING THE MOST OF
FLEXIBLE PENSIONS
ACT FAST BEFORE THE BUDGET P27
HEAD TO TURKEY
FOR A LAID-BACK
MUSIC BREAK P30
News
2 CITYA.M. 19 MARCH 2012
RUSSIAS United Company RUSAL, the
worlds top aluminium maker, report-
ed a 92 per cent drop in yearly net prof-
it today due to a supply glut and slower
demand weighing on the price of the
metal, as well as a reduction in the
value of its stake Russian miner
Norilsk Nickel.
RUSAL, also listed in Paris, posted a
net profit of $237m for 2011 against
$2.87bn a year earlier. Its net debt
stood at $11.05bn at the end of 2011, it
said in a filing to the Hong Kong stock
exchange. Shares of RUSAL in Hong
Kong have risen about 15 per cent this
year.
The company is currently locked in
a dispute with major shareholders
over its new chairman, Hong Kong
Mercantile Exchange chairman Barry
Cheung. MORE: P17
Profits at Rusal
plunged by
92pc in 2011
MINING
UPS finally closes in on 5bn

deal to buy rival TNT Express
US DELIVERY company UPS has final-
ly clinched a 5bn (4.2bn) deal to
buy TNT Express, a Dutch rival.
The valuation of its European
counterpart is an increase of at least
50 cents on UPSs offer of 9 per share
in February, which was rejected.
That was already a hike
from an offer of 8.25 a share
last autumn.
It will surprise some ana-
lysts because of the generous
valuation for TNT. But any
merger is likely to involve
slashing jobs to make up some
of the costs.
And UPS could be
forced to sell other
assets or shrink in
other ways in
order to satisfy hawkish European
competition authorities.
The deal could give UPS a
boost over rivals like FedEx,
which had been mooted as an
alternative bidder for TNT
Express when it rebuffed UPSs
previous offer.
It will also increase UPSs fire-
power in competing against
Deutsche Posts
DHL, its biggest
rival in Europe
with an 18 per
cent market share of express parcel
delivery.
TNT Express has a share of just
under 10 per cent, while UPS has
about eight per cent of the European
market.
But the expected valuation of just
over 5bn is a large premium to TNTs
rivals, which generally trade at a
price equal to 10 times earnings. The
price tag for TNT Express is, by con-
trast, around 14-15 times earnings.
UPSs chief executive and chair-
man Scott Davis (pictured, left) has
made international expansion one of
his main missions for the Atlanta-
based company.
It has also expanded outside parcel
delivery and into supply chains and
freight, having swallowed up more
than 40 other companies over the last
13 years.
If it successfully buys TNT Express,
however, the deal would be the
largest one yet for the US firm.
Unlike TNT Express, which began
as a spin-off from the Netherlands
postal service in 2010, UPS was start-
ed as a private courier and message
delivery service in 1907. PostNL, the
Dutch mail company, still owns 30
per cent of TNT Express.
According to Dealogic, the UPS-TNT
deal is the largest one announced in
its sector in the last 18 months.
Both UPS and TNT Express declined
to comment.
BY JULIET SAMUEL
M&A
Budget could be surprisingly radical

MAYBE, just maybe, this Budget could
end up being a big deal, a defining
shift in direction for the coalition and
the day George Osborne finally redis-
covers his radical inner self. I certainly
hope so, and there are growing signs
that this may be the case but insti-
gating a revolution would require
breaking away from the spin and con-
tinuity Brownite economics that still
plagues this government.
Take the temporary suspension of
Sunday trading laws these absurd,
antiquated and anti-consumer rules
that limit opening hours for all but
the smallest shops to just 6 hours for
the duration of the Olympics. Is this a
gimmick or is this the beginning of
the end for one of Britains silliest
pieces of red tape? Permanent change
will require a consultation a process
which has neutered reform in other
areas, including employment law
even though analyses during the
Major and Blair governments all
showed that the benefits of the
reform are much greater than its
costs. If shops are forced to close early
again when the athletes go home, we
will know that the coalition isnt real-
ly serious about supply-side reform.
David Cameron is making a big deal
of tapping private sector funds to
build, finance and operate new toll
roads, another good idea. But will real
change happen? Will firms actually be
allowed to build large number of
roads or is this merely a symbolic
gesture which will have no real effect
on the economy? The same is true of
the coalitions planning shake-up: will
it really make a difference? We will
soon find out.
One reform that appears more cer-
tain to materialise is the proposed
ending of national pay bargaining for
the public sector. The Institute for
Fiscal Studies, Policy Exchange and
others have demonstrated that public
sector workers are paid more than
their private sector counterparts. But
this conceals a huge disparity across
the country: there is no state sector
premium in the south-east of
England, while in Wales it is 18 per
cent. Because they are set centrally,
with no regard to the local cost of liv-
ing, public sector wages are far too
high outside of London and the south-
east. In many areas the best and
brightest all want to go and work for
the state, and private employers are
squeezed out. Over time, this excellent
reform could lead to far fewer distor-
tions in the labour market.
Then, of course, there is tax. Let us
hope that the 50p tax rate is abolished
immediately and entirely most com-
mentators believe that a cut to 45p is
more likely, perhaps starting in April
2013. This would cast doubt on the
overall radicalism of the Budget: the
chancellor should either go the whole
hog or not bother. This tax is popular
but it destroys incentives, jobs and
growth; getting rid of it would be the
best possible signal that Britain is
once again supportive of hard work,
success and wealth creation. The per-
sonal allowance is meant to be going
up to 10,000 by 2015; the chancellor
may bring this forward by a year,
which would help nearly all taxpayers.
Corporation tax will fall to 25 per cent
in April and 23 per cent by 2014; the
Chancellor may wish to signal further
moves, but long-term hopes are no
substitute for short-term reality.
Whether by accident or design,
Osborne could be on the verge of deliv-
ering a truly radical Budget. If he pulls
it off, defying all of his sceptics,
including myself, he may yet be
remembered as a great Chancellor.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
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BANKING QUINTET UNITE FOR HEDGING
TOOL
Five banks have joined forces to create
a hedging tool designed to improve
the health of their balance sheets and
protect them against market sell-offs
as international regulations force insti-
tutions to increase the quality of their
assets. Barclays Capital, HSBC, Lloyds,
Nomura and UBS are to launch a mar-
ket in derivatives overseen by the
Wholesale Markets Brokers
Association aimed at reducing fund-
ing costs and boosting profits in the
sterling markets.
LUKOIL CHIEF TO SHAKE UP ARCTIC OIL
Private resources companies will soon
be allowed access to Russias vast
Arctic oil and gasfields, and the coun-
trys tax system will be changed to pro-
mote growth in the sector, according
to the chief executive of Lukoil. Vagit
Alekperov, chief executive of the
Russian oil major, said that the policy
of maintaining the offshore Arctic as
the exclusive preserve of state groups
Gazprom and Rosneft had yielded no
positive results and would soon be
abolished.
TAN TO SIMPLIFY STRUCTURE AT BUMI
The Indonesian entrepreneur who
bailed out the countrys powerful
Bakrie family by buying a $1bn stake
in coal miner Bumi plc is to imple-
ment a potentially major restructur-
ing programme when he becomes the
companys executive chairman. Samin
Tan is to replace Nat Rothschild at a
board meeting on 26 March.
BARCLAY BROTHERS FACE COURT BATTLE
FOR LUXURY HOTEL GROUP
The tycoons who own the Daily
Telegraph and the Ritz Hotel will
today face accusations in the High
Court that they led a conspiracy to
seize control of three of Londons
plushest hotels by illegal means. Sir
David and Sir Frederick Barclay are
the principal defendants in a case
brought by Paddy McKillen.
NATIONS SPLIT OVER NEXT WORLD
BANK CHIEF
Half a dozen countries have
announced their intention to support
an outside candidate for the presiden-
cy of the World Bank, in a move that
will give the White House a headache.
BARCLAYS APOLOGISES TO FSA AFTER
IMPOSING SWAPS SECRECY CLAUSE ON
CUSTOMERS
Barclays has been forced to formally
apologise to the Financial Services
Authority (FSA) after evidence uncov-
ered by The Telegraph revealed that
the bank had demanded its clients
withhold information from the regu-
lator over the sale of controversial
swap products.
SIEMENS IN TALKS TO BUY EXPROS
MANUFACTURING ARM FOR $650M
Expro International, the Aberdeen-
based oil services business, is in talks
to sell its manufacturing business to
Siemens for $650m (410m). The sale
follows a strategic review of a division.
GM PUSHES FOR BROADER PEUGEOT
DEAL
General Motors and Frances Peugeot
Citroen aim to begin joint develop-
ment of at least two passenger cars by
this fall, GM Chief Executive Dan
Akerson said, describing the new
alliance between the companies as a
changed way of doing business for
the Detroit auto maker. The cars are
likely to go on sale by 2016 in global
markets, Akerson said.
FORMER DISSIDENT IS ELECTED AS GER-
MAN PRESIDENT
Joachim Gauck, a pastor-turned-dissi-
dent in the former East Germany, was
elected Germanys head of state yes-
terday.
WHAT THE OTHER PAPERS SAY THIS MORNING
The new jobs website for London professionals
CAREERS.com
THE Co-operative Group is set to con-
tinue its search for a chief executive
to run the 630 branches put up for
sale by Lloyds after an audacious
approach to the head of a rival bidder
came to nothing.
The mutual held talks with Gary
Hoffman, chief executive of new
British bank venture NBNK, earlier
this year as it is tries to satisfy the City
regulator that it has the expertise
required for a massive expansion.
The Co-op is the preferred bidder
for Lloyds branch sale, which is
known as Project Verde, and is expect-
ed to raise 1.5bn for the taxpayer-
funded bank.
The Co-ops headhunter,
Whitehead Mann, approached
Hoffman earlier this year but he
informed them he wanted to stay
with NBNK, the buy-out vehicle set up
by Lord Levene.
It is thought the Co-op did not get
as far as formally offering a position
to Hoffman and sources said the
nature of the role of chief executive of
the Co-op Bank will not be known
until a deal with Lloyds has been con-
firmed.
The Co-op has still to convince the
Financial Services Authority (FSA) it
has the ability to run the branches.
A deal would treble the Co-ops
banking arm from about 340 branch-
es to nearly 1,000 but the FSA wants
to see more financial services expert-
ise at group level.
The Co-op group is expected to
revamp its board, which is made up
of members rather than company
executives and non-executive direc-
tors, to meet the concerns of the FSA.
The banking division of the Co-op,
which bought Britannia Building
Society in 2009, is currently run by
acting chief executive Barry Tootell
and chairman Paul Flowers, a
Methodist minister and Bradford city
councillor.
A spokesman for the Co-op said:
We are making good progress in our
search for a chief executive for the Co-
operative Bank, with a strong list of
candidates. We will update as and
when appropriate.
Lloyds, which is being forced to sell
the branches under European state
aid rules, chose the Co-op over NBNK
as the preferred bidder in December.
The decision came a month after
NBNK lost out to Sir Richard
Bransons Virgin in the bidding for
the good part of Northern Rock.
Hoffman joined NBNK as chief
executive in May last year after a stint
running nationalised bank Northern
Rock. Yesterday NBNK declined to
comment.
Lloyds is due to update the market
on Verde at the end of this month.
Co-op fails to
lure Hoffman
from NBNK
BY PETER EDWARDS
BANKING
LONDON has retained its standing as

the worlds top financial centre,
despite economic uncertainty, the
threat of regulatory upheaval and the
Eurozone debt crisis.
In the Global Financial Centres
Index, the UK capital scored a rating
of 781, compared to 772 for New York,
754 for Hong Kong, 729 for Singapore
and 693 for Tokyo. The ranking, by
think-tank Z/Yen Group, is based on a
survey of 77 centres, comparing fac-
tors like market access, infrastructure
and competitiveness.
The remaining top 10 slots were
taken by Zurich (689), Chicago (688),
Shanghai (687), Seoul (686) and
Toronto (685).
Ratings for the Chinese cities of
Shanghai, Beijing and Shenzhen all
declined, possibly as a result of ren-
minbi trading restrictions.
London retains its ranking as the
worlds best place to do business
FINANCIAL SERVICES
APPLE will today finally reveal what it

plans to do with its enormous cash
stockpile.
The consumer favourite, which had
$97.6bn (61.6bn) in cash and securi-
ties as of the end of last year, is likely
to offer a dividend to shareholders.
Apple chief executive Tim Cook
and chief financial officer Peter
Oppenheimer will announce the
results of its internal review in a con-
ference call at 1pm UK time. Apple
will not be providing an update on
the current quarter nor will any top-
ics be discussed other than cash, the
companys release stated.
The question of how the hugely
successful iPhone and iPad-seller
would spend its reserves now tipped
to be over $100bn has been hotly
debated by analysts. Suggestions
range from a spending spree to phi-
lanthropy or cutting Apple prices.
Analyst Shaw Wu of Sterne Agee
said recently he believed a yield in the
two to three per cent range would be
very attractive for shareholders as
well as employees. He said the other
benefit of a dividend was it would
bring in a new class of investors
where funds that only invest in divi-
dend paying stocks could now own
AAPL shares.
Apple set to divulge how it
will bite into huge cash pile
BY JENNY FORSYTH
TECHNOLOGY
News
Apple chief executive Tim Cook will reveal what the firm will do with an extra $100bn
Budget News
SHOPS will be allowed to open for
more hours on Sundays during the
Olympics, George Osborne said yester-
day, boosting sales in London by hun-
dreds of millions of pounds.
Current rules limit large stores
opening times to six hours on Sunday,
which means Olympic visitors will
miss out on evening shopping send-
ing out a signal to tourists and foreign
investors that Britain is closed for
business, the chancellor warned.
Relaxing the rules for the eight
weeks of the Olympics and
Paralympics will bring traders in the
capital an extra 360m, according to a
New West End Company study.
The move has led to speculation
that the rules could be permanently
relaxed following the Games, though
the Treasury denies a long-term
change is in the pipeline.
A study from the Department for
Business, Innovation and Skills (BIS) in
2006, when the change was last moot-
ed, found that permanently changing
the rules would bring the UK a net
benefit of 1.4bn per year.
However, the Church of England
told City A.M. it would oppose any long-
term change, arguing it is important
for family and community life that as
many as possible have a common day
off every week, while shadow chancel-
lor Ed Balls said an extensive consulta-
tion must be carried out first.
Sunday trading rules set
to be scrapped for Games
BY TIM WALLACE
RETAIL
ECONOMISTS VIEWS: WILL LONGER SUNDAY
TRADING HOURS BOOST GDP? Interviews by Tim Wallace
ANDREW GOODWIN | ERNST AND YOUNG ITEM CLUB

People have an amount to spend, and although this will allow greater
flexibility it is unlikely to change overall spending. Nonetheless, giving consumers
greater choice and availability is good thing, and it could create a few extra jobs
covering hours that are not covered at the moment.
HOWARD ARCHER | IHS GLOBAL INSIGHT

Purely in terms of economic activity, it cant do any harm and could provide
a limited temporary boost to growth. Consumer spending is a key element of GDP, so
any action that facilitates spending could have a positive impact. And there may be a
feel good factor during the Olympics that encourages people to spend.
MARK LITTLEWOOD | INSTITUTE OF ECONOMIC AFFAIRS

Sunday trading restrictions are a small but significant example of the
UK's tendency to retain heavy-handed regulation rather than encouraging a grow-
ing and vibrant economy. We should do all we can to maximise the boost to our
retail sector during the Olympics and assist our economy more generally.
The chancellor hopes longer Sunday trading hours will boost sales Picture: GETTY
Budget News
THE TAX-FREE allowance could be
raised faster than previously
planned in Wednesdays budget,
City A.M. understands, as part of a
major deal to reduce taxes on work-
ers at both ends of the income dis-
tribution.
Chancellor George Osborne yes-
terday promised that the bulk of
new measures announced will ben-
efit people on low and middle
incomes, as economists warned this
is his last chance to boost economic
growth before the next election.
Analysts at the Centre for
Economics and Business Research
(CEBR) called on Osborne to relax
planning rules to stimulate eco-
nomic growth without increasing
government spending.
The CEBR suggested scrapping
the 50p top rate of income tax,
which it believes will lose tax rev-
enues by driving high-earners away,
and cut fuel duty to boost growth.
These extra supports are needed
because official GDP projections
calculated by the Office for Budget
Responsibility (OBR) are too opti-
mistic, the think-tank believes.
The government was
already expected to raise
the threshold at which
income tax kicks in by
630 in this budget as
part of a long-term plan
to take all those on
incomes below 10,000
out of the tax.
However, Osborne
(right) is believed to
be bowing to
Liberal Democrat
pressure to raise
the allowance
more quickly,
benefiting those
on low incomes.
In exchange
the Liberal
Democrats are
expected to drop
their opposition to
the chancellor scrapping to 50p rate
on those earning over 150,000.
Business secretary Vince Cable
last week said the party is not ideo-
logically wedded to the top rate of
income tax, as long as the poor
also benefit and the tax is
replaced with another levy on
the rich.
However, increasing the
allowance is expensive PwC
estimates that every 100
rise in the tax-free allowance
costs the Treasury 500m in
lost income, which must be
found elsewhere.
Furthermore, the lowest
paid may not receive the full
benefit of the change, crit-
ics have claimed.
Taxpayers with chil-
dren, for example, will
find their tax credits
reduced as they pay less
income tax, leaving
them barely affected
by the size of the
allowance.
Calls for end to 50p
tax as Osborne mulls
faster allowance hike
Warning against giveaways
THE GOVERNMENT cannot afford to
make big Budget giveaways this week
and must focus on reducing its huge
annual deficit, two leading business
and economic groups have said.
I dont think the country can
afford significant tax cuts if it really
wants growth, Confederation of
British Industry (CBI) chief John
Cridland told the BBC yesterday.
The CBI is endorsing only 500m
worth of budget cuts, targeted at
infrastructure and small businesses.
I dont think this is the Budget to be
talking about big giveaways,
Cridland (pictured) said.
This morning Cridlands
verdict was echoed by
economists at the Ernst &
Young Item Club.
Despite the chancellor
being on course to beat
this fiscal years borrow-
ing target by
7bn, Item has
c a u t i o n e d
against a
spring spending spree.
Such fiscal stimulus would only
have a limited macroeconomic
impact and could also send the
wrong signals to rating agencies and
the financial markets, Item said.
We would like to see the chan-
cellor use his windfall as a buffer
against any potential escalation of
the Eurozone crisis and invest in
small, low cost measures designed
to boost the UKs productive
potential, said Items sen-
ior economic adviser
Andrew Goodwin.
BY TIM WALLACE
BUDGET
BY JULIAN HARRIS
BUDGET
FULL tax relief should be offered to

business angels and high net worth
individuals who already pay the 50p
tax rate to encourage them to reinvest
money in technology start-ups, a team
of lawyers has urged.
A group of partners at leading
media and technology law firm Reed
Smith has called for more governmen-
tal initiatives in this weeks Budget to
promote investment in technology
and media and enhance the sectors
contribution to the UKs economy.
David Cameron talks a lot about
the Silicon Roundabout and the tech
sectors success stories, but this talk
needs to be backed up with meaning-
ful economic development initiatives
and tax incentives to encourage
growth, said Reed Smith partner
Gregor Pryor.
The team called for an extension of
the UK tax credit to high-end televi-
sion production.
Government called on to
protect UK tech industry
UK ECONOMY
EXPECTATIONS FOR WEDNESDAYS BUDGET

50P TOP RATE
It is widely accepted that it actually brings
in little revenue and maybe acts as a deter-
rent in attracting or keeping top talent,
commented economist Howard Archer of
IHS Global Insight, yesterday. Yet Archer
notes that a reduction in the top rate of
income tax would nonetheless be political-
ly contentious. Rumours have strength-
ened in recent days that Osborne will cite
evidence from the HMRC as justification for
cutting the rate to 45p or 40p.
TAX FREE ALLOWANCE
Liberal Democrats are intent on raising the
tax free allowance to help workers on low
or average incomes. With the policy facing
little Tory resistance, we suspect that an
acceleration in bringing the tax-free
allowance to 10,000 could be included.
PENSIONS RELIEF
Labour is pushing for a cut in the 50,000
annual allowance on pensions contribu-
tions. Osborne is likely to succumb to the
demands.
STAMP DUTY
One other area where the chancellor is
expected to clamp down on the wealthy is
by closing a loophole on stamp duty, which
some people avoid by putting expensive
properties in off-shore firms . BDOs
Stephen Herring said the change is as
close to a dead cert as you can get.
ANTI-AVOIDANCE (GAAR)
Proposals to crack down on tax avoidance
are very likely to be included in the Budget,
with draft proposals having been on the
table since the beginning of the year.
TYCOON TAX
Another wealth-bashing measure touted by
deputy prime minister Nick Clegg last
weekend. The Lib Dems admitted that the
tax would have to be looked at by the
Treasury after tax accountants slammed it
as unnecessary and unworkable.
MANSION TAX
The Lib Dems have also been making noises
about a possible mansion tax. A form of
mansion tax could be introduced simply by
inserting new higher level bands of council
tax, Ernst & Young said yesterday. It
remains unclear what will happen.
VALUE ADDED TAX
E&Ys Patrick Stevens added that VAT
remains relatively low compared to other
countries across Europe so there is room
for manoeuvre. Yet any rise would be very
unpopular, and extremely unlikely.
FINANCIAL ACTIVITIES TAX?
Could banks be hit yet again? Maybe via
another hike in the already elevated charge
on bank balance sheets? While opposed to
a Tobin tax, the UK government has not
ruled out a higher FAT tax.
CONTROLLED FOREIGN COMPANIES
The chancellor will finally conclude plans to
reform CFC rules which currently tax over-
seas subsidiaries of UK-based firms a
measure accused of deterring companies
from locating their HQs in Britain.
CORPORATION TAX
The Treasury is already cutting corporation
tax according to a plan spanning several
years. As a growth-boosting measure,
Osborne could announce an acceleration of
the plan or a timetable to cut the rate fur-
ther to just 20 per cent over time.
ONLINE GAMBLING GAMES
We could see the decision on the introduc-
tion of taxation on Remote Gaming, target-
ing online poker and betting, warned Ernst
& Young yesterday.
CIGARETTES AND ALCOHOL
Additional taxes on recreation are, as usual,
expected to include tobacco and booze.
REPUBLICANS in the US House of
Representatives will try this week to
seize control of the election-year
spending debate by rolling out a plan
to slash trillion-dollar deficits and
revive reforms to the Medicare health-
care program for the elderly.
House Budget Committee
Chairman Paul Ryan will unveil the
sequel to his Path to Prosperity budg-
et tomorrow, with a committee vote
scheduled for Wednesday. It is expect-
ed to be considered on the House floor
the following week, an aide said.
The effort from Ryan aims to por-
tray Republicans as unafraid to face
the tough decisions needed to avoid
what they warn is a looming U.S. debt
crisis. He intends to contrast
Republicans with what they view as a
big tax-and-spend budget from
President Barack Obama that would
produce a fifth straight year of $1 tril-
lion deficits and make no major
changes to Medicare or the Social
Security retirement program.
Though the Ryan budget resolution
is likely to win approval in the
Republican-controlled House, neither
it nor Obamas budget plan is expected
to become law. They will be used as
campaign platforms detailing policies
each party wants to pursue if it wins
the White House in November.
US Republicans
to roll out new
spending plans
US POLITICS
News
City hoping for tax cuts and loophole
crackdown in Osbornes March budget
THE CITY overwhelmingly supports a
package of budget measures to cut taxes
while cracking down on tax loopholes.
Over 80 per cent of those asked in City
A.M./PoliticsHome.coms Voice of the City
poll said they support cutting corporation
tax and scrapping the 50p rate for the top
income tax bracket.
But even more of those polled 86 per
cent were in favour of closing a loophole
that allows property owners to put houses
in an offshore trust to avoid stamp duty.
Far fewer think the chancellor will actu-
ally incorporate their preferences:
although over half 53 per cent think
corporation tax will be slashed again, only
41 per cent think we will see the back of
the 50p tax rate.
And the City is braced for an unpopular
abolition of tax relief on pension contri-
butions for top earners. Sixty-three per
cent are against the measure (43 per cent
said they view it as very unfavourable)
but 60 per cent think George Osborne will
announce it on Wednesday.
Half of City workers asked also favoured
adding a new council tax band for man-
sions, which was as many as were in
favour of Downton Abbey tax breaks to
encourage home-grown TV productions.
Support for a mansion council tax band
is much higher than for an additional two
per cent mansion tax for properties
worth over 2m, which is an idea support-
ed by only 26 per cent of those asked.
Asked what one measure they would
like to announce in Wednesdays budget,
most respondents prioritised a tax cut in
one form or another, with many suggest-
ing increasing the basic income tax
threshold to 10,000, cutting corporation
tax, a VAT cut, a NI cut, a fuel duty cut,
abolishing the 50p rate and simplifying
taxes.
PoliticsHome.com PoliticsHome.com Apply to join today at www.cityam.com/panel
Very likely
Somewhat likely
Neither likely nor unlikely
Somewhat unlikely
Very unlikely
%
Closing the stamp duty loophole
Dont know
37
38
5
10
1
9
Very favourable
Somewhat favourable
Neither favourable nor unfavourable
Somewhat unfavourable
Very unfavourable
%
Cutting corporation tax
48
32
9
4
7
Very likely
Somewhat likely
Neither likely nor unlikely
Somewhat unlikely
Very unlikely
%
Scrapping the 50p tax rate
Dont know
12
28
16
14
28
2
How likely are the following measures?
CONTROVERSIAL investor Brian
Myerson, who was banned from City
takeover work for three years in 2010,
is waging war against the board of a
London-listed property fund.
Myerson, the shareholder who
shook up Liberty, Blacks Leisure and
Scholl before getting the cold shoul-
der from UK regulators, is now put-
ting pressure on fellow investors in
South African Property Opportunities
(Sapro) to oust the board immediately.
Last week he sent a letter to institu-
tions such as Standard Life, Deutsche
Bank and SVM urging them to make
much needed changes to the compa-
nys management team in the wake
of unacceptable loss of value.
Frankly the new management
team are inexperienced and
unequipped to do the job, Myerson
told City A.M. Not a penny has been
sent back to shareholders.
The firm has said it is considering
his request for an EGM.
He helped float Sapro on Londons
Alternative Investment Market in
2006, but has repeatedly lobbied the
group since leaving three years ago.
The South African, whose 11m
divorce hearings made headlines in
2009, made his name as a tub-thump-
ing investor alongside Julian Treger in
their Active Value vehicle.
He set up Principle Capital, which
owns a 14.4 per cent stake in Sapro, in
2004. But he failed to disclose that he
was working with two colleagues to
buy up shares in Principle Capital
Investment Trust in a bid to push
through board changes.
Myerson, along with Daniel Posen
and Brian Padgett, became the first
investors in 20 years to be subject to
the Takeover Panels cold shoulder
powers two years ago.
He has kept busy since his effective
expulsion from the City, helping man-
age investments worth around $1bn
through Principle, where he remains
executive chairman. He said yesterday
he continues to look for investments
in several markets including the UK.
Myerson back
in bid to oust
Sapro board
LONDON MAYOR Boris Johnson has
revealed that Chelsfield, the property
firm run by Sir Stuart Lipton, has been
picked for the fiercely contested
1.2bn regeneration of Silvertown
Quays in Londons East End.
The 50-acre site owned by the
London Development Agency is one of
the largest derelict sites within the
proposed Royal Docks Enterprise Zone.
Its transformation is expected to cre-
ate about 9,500 jobs, as well as provid-
ing 228,570 square metres of
commercial and retail space and
126,440 sq m of housing.
Despite one of the harshest eco-
nomic climates in decades an urban
renaissance is underway in east
London and I have no doubt that
Silvertown Quays will become a busi-
ness destination of worldwide appeal,
Johnson said.
The Chelsfield consortium, includ-
ing First Base, Imagination Europe,
Delanceys DV4 and Berkeleys St
George subsidiary, will sign a final
contract with the LDA within a few
months.
Work on Silvertown Quays is expect-
ed to start within two years.
Boris Johnson names Chelsfield as
developer in 1.2bn London project
BY MARION DAKERS
PROPERTY
BY KASMIRA JEFFORD
PROPERTY
News
The regeneration of Silvertown Quays in Londons East End is expected to create 9,500 jobs
A Brazilian court has barred 17 execu-
tives from Chevron and Transocean
from leaving Brazil, pending criminal
charges related to a high-profile oil
spill last November.
Over the weekend a federal judge in
Rio de Janeiro state granted a request
from prosecutors who are pressing for
charges against both firms. George
Buck, who heads Chevrons Brazil
unit, and the other 16 executives, were
told to hand their passports to police
within 24 hours.
Charges are expected to be filed
tomorrow or Wednesday.
The court decision came a day after
the Brazilian navy spotted a thin stain
of oil extending for about 0.6 mile (one
km) in offshore field Frade, which was
also the site of last years spill.
TUBE workers are set to reject yet
another Olympics bonus offer this
week, leaving transport bosses scram-
bling to avoid strikes during the
Games, which are now just over four
months away.
Almost 150 reps for the RMT will
today call on the union to turn down
the latest 850 overtime and bonus
package.
The reps said the offer unfairly
excludes drivers and admin staff.
The RMT executive will now meet
this week to decide whether to for-
mally turn down the package, in line
with Unite, which rejected it last
Wednesday.
Unions have already sealed bonus
deals for workers at Network Rail,
Virgin Trains, London Overground
and Docklands Light Railway.
Tube workers to
reject Games offer
OIL
BY MARION DAKERS
TRANSPORT
News
Brought to you by
IN ASSOCIATION with Repskan.com,
City A.M. is measuring the relative
Olympic media buzz around the London
2012 Olympic and Paralympic Games
partners, week by week. The leaderboard,
right, reflects their ranking over the past
week, in this case from Wednesday 7
March to Wednesday 14 March.
News that Coca-Cola is considering acquir-
ing the post-Games naming rights to the
Olympic Park velodrome, that Mark Ronson
is discussing recording a new song with
Katy B for Coca-Colas global ad campaign
and that, apparently for the Olympics, Coca-
Cola may be putting a miniature plastic rep-
resentation of Jessie Js distinctive hairstyle
on top of their bottles have all helped push
Coca-Cola up in the online buzz rankings this
week. On top of that, more local events have
been boosting its online presence. For exam-
ple, a Coca-Cola branded happiness
machine in Belgium had people dancing to
receive gifts as part of its move to the
beat campaign.
Olympic Media Buzz
LONDON 2012 PARTNERS
Brand Position change
Acer 1
Coca-Cola 4
Cisco 0
Adidas 2
Visa 0
Samsung 2
EDF 1
Panasonic 5
McDonalds 2
ATOS 1
Coca-Cola Olympic mentions by category
Regional News
Twitter
Blogs
Other
Topicals
National News
%
8
66
9
2
8
7
TOP TEN PARTNERS BY MENTIONS
Chevron and Transocean execs
held in Brazil pending spill case
Oil executives are likely to be charged over a spill at the Frade field off the coast of Rio de Janeiro last November
VODAFONES tax dealings have been
brought back into focus after it
emerged that the firm could benefit
from tax benefits worth as much as
1bn if it makes a successful
takeover bid for Cable & Wireless
Worldwide (CWW).
Analysts at Espirito Santo said in a
note last month that CWW has tax
assets worth up to 991m, based on
UK capital losses of 5.197bn.
The sum could be enough to offset
the entire cost of buying the compa-
ny, which had a market cap of
754.8m on Friday. Alternatively, the
assets could be used to create a
decade-long tax holiday for
Vodafone.
However, the analysts said the
potential dent to Vodafones reputa-
tion by using CWWs tax benefits
means the real top-end value of the
assets is closer to 430m.
Vodafone may be concerned
about reputational damage with
consumers following any deal which
potentially could be perceived as the
company actively trying to lower its
UK tax burden (albeit legally), they
said in the note.
Vodafone has been caught up in a
string of tax disputes in recent years,
including a merger arrangement in
India that on Friday prompted a
rethink of the countrys internation-
al tax laws.
Last year the company was subject
to protests by UK Uncut for handing
1.2bn to the British taxman in what
campaigners called a sweetheart
deal.
Vodafone and CWW declined to
comment yesterday. Vodafone and
Tata have until 29 March to bid.
Vodafone in
line for CWW
tax loss boost
CMC Markets, the spread betting
group, has decided to close its Dublin
office, bringing the operation of its
Irish business into its London head-
quarters.
The group, which is expected to
swing back into profit in its financial
year to the end of the month after
two successive annual losses, says the
move is largely tactical.
Were the second largest player in
the Irish market but half the work-
load is already serviced from the UK,
says chief executive Doug Richards.
CMC said it would not make any cost
savings from the closure. CMC
opened its Dublin office in 2007.
Were heading for a record
turnover, client trades and a turn-
around to profit, said Richards, who
said that the flotation of the business
was still the groups intent.
CMC is also planning some man-
agement changes, which were
announced internally last week. Five
roles will be affected by the shake-up.
Again Richards put the manage-
ment changes down to the ordinary
course of business.
The spread betting sector has been
hit by nervousness following prob-
lems at Worldspreads, whose shares
were suspended on Friday. Last night
the group went into administration.
CMC Markets
to close Irish
office in rethink
Vodafone, led by Vittorio Colao, is one of two firms looking at CWW Picture: GETTY
BY MARION DAKERS
M&A
SPREAD BETTING
Cable & Wireless Worldwide is being circled

by Vodafone and Tata Communications
The firm said it had UK capital losses of
5.2bn last year, and new chief executive Gavin
Darby is mid-way through a business review
FAST FACTS | CWW
News
Cables, not tax, would justify a deal
AS THE Greek government has dis-
covered in recent weeks, a 50 per
cent haircut is a tricky thing to foist
upon investors.
Vodafones tax boffins will by now
have been through CWWs assets
with a fine tooth comb to figure out
how many of its benefits will remain
useable following a takeover.
If Espirito Santos number-crunch-
ing is correct, Vodafone could realis-
tically gain a maximum of 430m
from loss-making CWWs near-1bn
UK tax assets, taking into account a
loss of goodwill and political stand-
ing if the group was to delve again
into the legal but sometimes cloudy
sphere of tax efficiency.
Would such a controversial agree-
ment be worth it? Analysts have
argued that cash-rich Vodafone
could do with a takeover deal, and
some have put a value of almost
2bn on CWWs operations and pos-
sible synergies much more valu-
able than its tax breaks.
CWW owns the UKs largest cable
network, reaching 20,500km in
length. Its roster of corporate and
government contracts would also be
a buffer against the ups and downs
of consumer mobile contracts. Its
these physical assets that Vodafone
should pay closest attention to not
its cut-value tax allowances.
BOTTOMLINE
Analysis by Marion Dakers
WHISKY producers have warned the
government that plans to place a
minimum price on units of alcohol
would be illegal under European
trade rules.
The Scotch Whisky Association
(SWA), whose members include
Diageo, the Edrington Group and
Chivas Brothers, has written a letter
to Downing Street stating that the
policy would amount to a domestic
barrier to free trade within Europe.
The group, whose 56 members
employ 35,000 people in Britain, also
stressed that similar price control
efforts from other countries such as
the Netherlands have been thwarted
by the European Court of Justice in
Luxembourg.
Prime Minister David Cameron is
keen on a minimum price for a unit
of alcohol likely to be in the 40p-50p
range as he hopes it could save the
UK 15bn over 10 years and stem the
problem of weekend war zones
fuelled by drink.
But if the price controls are includ-
ed in the governments alcohol strate-
gy due later this week or early next
week he is likely to face opposition
from competition authorities, alco-
hol producers, and even health secre-
tary Andrew Lansley.
While the drinks industry was said
to be comfortable with a ban on
supermarkets selling alcohol at a loss,
there is widespread concern over
minimum pricing as it would have a
more dramatic effect.
A 50p minimum unit price would
add 27 per cent to the cost of a bottle
of Scotch whisky and producers
believe higher prices would hurt
moderate drinkers and have little
effect on problem drinkers.
Gavin Hewitt, chief executive of the
SWA, has already fought an earlier
bid by Scottish government to set
minimum prices. He said it was the
wrong policy option which would
not bring a more healthy, positive
and responsible attitude to alcohol.
Despite the threat of legal action,
health groups say the change is war-
ranted. Government figures show one
in four Brits drink at harmful or haz-
ardous levels, and the charity Alcohol
Concern expects related hospital
admissions to hit 1.5m a year by 2015,
at a cost of around 3.7bn a year to
the National Health Service.
Whisky group
says minimum
pricing illegal
BY JENNY FORSYTH
UK ECONOMY
SWA chief executive Gavin Hewitt says minimum alcohol pricing is a barrier to free trade
Private Property
Finance
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News
NEWS | IN BRIEF
Nigeria tops oil expat pay table
A typical oil and gas executive in Nigeria
earns nearly half a million dollars a year,
chalking up the biggest premium for
working abroad over salary levels in
Britain, research released today showed. A
typical senior oil and gas employee in
Nigeria will receive a supplementary coun-
try premium worth 45 per cent of base
pay, taking the total salary to $454,400 a
year, a study by the Curzon Partnership
recruitment consultants showed. This
trumps packages for executives working
in Libya or Iraq, who could expect a total
salary of around $354,900, the research
found. Oil industry executives in Indonesia
can expect a premium of 40 per cent in
Indonesia, 35 per cent in Ghana and 30
per cent in Libya, Kurdistan or Egypt, the
research found.
MORE NEWS
ONLINE AT
@
www.cityam.com
UK tops G20 for internet
contribution to its GDP
THE INTERNET industry contributed
more to GDP in the UK than in any
other G20 nation, accounting for 8.3
per cent or 121bn of its gross
domestic product in 2010, compared
to a G20 average of 4.1 per cent.
And a Boston Consulting Group
(BCG) report predicts this will rise by
almost half in the next few years, hit-
ting 225bn by 2016 and representing
12.4 per cent of the nations GDP.
Averaging out to an annual growth
of 10.9 per cent, the UKs internet econ-
omy outstrips the 8.1 per cent average
yearly progress of other G20 nations.
Germanys online sector is expected to
grow by 7.8 per cent a year, while the
likely figures for the US and France are
6.5 and 6.1 per cent respectively.
Emerging markets have a far higher
annual growth rate, with 24.3 per cent
in Argentina and 23 per cent in India.
But the internet is not classed as a
stand-alone industry sector in the UK
or it would be the fifth largest in the
country, ahead of the healthcare, con-
struction and education sectors.
The report says the total size of the
G20 internet economy will hit $4.2 tril-
lion (2.68 trillion) by 2016, accounting
for 5.3 per cent of GDP, compared to
$2.3 trillion and 4.1 per cent in 2010.
TECHNOLOGY
News
A GROUP of major asset managers
including Aviva and BlackRock are
calling today for reforms to improve
the stewardship of UK companies.
The groups report argues for the
development of a framework for equi-
ty investors to identify the level of
stewardship they plan to undertake,
helping asset owners to make better
decisions. It also calls for fuller feed-
back between companies and investors
and for companies to have a plan for
how to achieve a critical mass of stew-
ardship investors.
The recommendations, from a
group made up of Aviva Investors,
BlackRock, Governance for Owners,
RPMI Railpen, Ram Trust and USS and
supported by think tank Tomorrows
Company, will also be submitted to the
equity markets review chaired by
Professor John Kay.
In a statement the group said: We
are all committed to shareowner stew-
ardship and have come together
because we share concerns about the
quality of stewardship in equity mar-
kets.
Last month Kays interim report said
many respondents felt quarterly com-
pany reporting encourages firms to
pad the results with useless or mis-
leading figures.
Investors call for improved stewardship
EUROPES economies must seize the
moment to push through vital eco-
nomic reforms, and not wait until a
renewed crisis forces them to make
changes, IMF boss Christine Lagarde
said yesterday.
She spoke as Greek socialist party
PASOK voted for finance minister
Evangelos Venizelos as party leader, as
it heads towards a general election
with a fraction of the support it previ-
ously received, after a spell in govern-
ment which ended with the
technocratic Prime Minister Lucas
Papademos taking control of the coun-
try and negotiating a second bailout.
Meanwhile Mohamed El-Erian, boss
of bond fund Pimco, warned that
Portugal will be the next Eurozone
country to falter, saying its bailout
package is insufficient.
Lagarde told an audience in Beijing
that advanced economies must take
advantage of newly gained breathing
space given to them by the current
lull in the crisis, cutting fiscal deficits
and improving competitiveness.
She also urged emerging economies
to translate higher growth into better
living standards for all.
IMF urges fast reforms
BY TIM WALLACE
EUROZONE
SOUTH American nations backed

Argentinas claim to oil near the
Falkland Islands at the weekend, argu-
ing that British firms are hunting for
fuel in the region unilaterally.
Argentina said last week it would
take civil and criminal action against
any companies involved in oil explo-
ration off the islands, known as the
Malvinas in South America.
Four Aim-listed companies are
actively exploring for oil in the area,
and the British government has said
it will defend their rights to drill.
Foreign ministers of the UNASUR
grouping of South American nations
said in a joint statement late on
Saturday: The military presence of
the United Kingdom and Northern
Ireland in the Islas Malvinas ... goes
against the regions policy to seek a
peaceful solution to the sovereignty
dispute, and [the region] reiterates its
rejection of that presence.
It also rejects unilateral British
activities in the disputed zone, which
include, among other things, the
exploration and exploitation of
renewable and non-renewable
Argentine natural resources as well as
military exercises.
British Rear-Admiral Sir John
Forster Woodward, who gave the
order to sink the General Belgrano
during the 1982 war, warned yester-
day that recent cuts to the British
armed forces mean a military opera-
tion to defend the islands is unlikely.
We could not retake the Falklands.
We could not send a task force or
even an aircraft carrier. If we had
been in this state in 1982, the
Falklands would be the Malvinas. We
rely on sending reinforcements by air,
but that would be impossible if we
lost control of the airfield at Mount
Pleasant, he told the Sunday
Telegraph.
Argentina
gets support
on Falklands
SURGING OIL PRICES have the poten-
tial to knock the Eurozone further
into recession and cost hundreds of
thousands of jobs, according to analy-
sis by Ernst & Young.
If the price of crude hits $150 (95)
a barrel this year, the consultancy
expects to see contraction of one per
cent in the Eurozones GDP, com-
pared to a 0.5 per cent slump if the oil
price falls to $105 by the end of the
year.
At $150, oil would put further pres-
sure on inflation, sending the con-
sumer price index up from 2.2 per
cent to three per cent this year, and
from 1.8 to 2.8 per cent in 2013, Ernst
& Young added.
It also estimates that 192,000 more
people could lose jobs as a result of oil
hitting this price. Its experts have
forecast unemployment of 18.1m this
year if oil reaches $150, compared to a
baseline of 17.9m.
The price of crude has been nudg-
ing record highs of $128 a barrel in
recent weeks, inflamed by supply
problems coupled with Irans antago-
nistic stance towards the West.
Forecasts differ widely for where
the price of oil is heading, with some
experts predicting highs of $200 if the
US starts military action against Iran,
while others expect the price to settle
closer to $100 throughout the year.
A new oil shock would hit an
already fragile economy. With their
budgets already squeezed by austerity
measures and rising unemployment,
many households are likely to be
unable to offset the rise in energy
bills with lower savings, said Marie
Diron, senior economic adviser to the
Ernst & Young Eurozone Forecast.
Instead, consumer spending on
other goods and services would be cut
to make up for higher spending on
energy.
Euro jobs at
risk if crude
hits $150
IMF boss Christine Lagarde says economic reforms are vital Picture: GETTY
BY MARION DAKERS
ENERGY
BY PETER EDWARDS
ASSET MANAGEMENT
BY MARION DAKERS
ENERGY
ITALIAN prime minister Mario Monti

faces an arduous task this week to rec-
oncile the demands of unions and
employers and draft a labour reform
aimed at boosting Italys competitive-
ness and shielding it from the
Eurozone debt crisis.
With a self-imposed deadline to get
a deal by the end of this week the signs
are not promising, with the largest
trade union saying an accord at a key
meeting tomorrow is impossible,
and the biggest employers lobby warn-
ing it will not sign any document that
concedes too much to the unions.
Yesterday, Monti played down the
tensions, saying he still believed a deal
could be struck at the meeting he will
host.
If the positions werent still quite
far apart it would mean the conclusive
meeting had already taken place suc-
cessfully, he said at a ceremony in
Turin.
Monti confident on talks
THE UKs legal sector is set to contract
this year, with up to 3,000 lawyers leav-
ing the profession as revenues remain
flat at most firms.
According to research by RBS, a fur-
ther five per cent of fee-earning
lawyers need to be stripped out of the
market in order for firms to return to
levels of profitability seen before the
financial crisis, on top of those already
let go during restructurings over the
past few years.
RBS surveyed 60 senior executives
across 40 UK law firms for the report,
with the majority expecting their rev-
enues to either remain broadly
unchanged or fall during 2012, with
just over one-third predicting revenue
growth of more than five per cent.
We expect the currently depressed
levels of transactional activity and rev-
enue growth to be a feature of the
market for the medium term, said
James Tsolakis, the head of the legal
services team at RBS who compiled the
report.
As the legal market continues to lib-
eralise following the introduction of
alternative business structures (ABS) at
the start of the year, Tsolakis also said
it wont be long before we see a firm
take advantage of the opportunity to
raise money on the stock markets.
I would expect the first AIM list-
ing likely within 18 months, he pre-
dicted.
Legal sector
set to shrink
during 2012
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BY ELIZABETH FOURNIER
LEGAL SERVICES
News
Decrease (<-5%)
Stay the same
(+5%to -5%)
Increase (+5%)
REVENUE GROWTH EXPECTATIONS
In the next 12 months most firms expect fees to:
Source: RBS Legal Sector Outlook Survey (September 2011)
%
SHAKE-UP LOOMS AT MINER ENRC
MEHMET Dalman (pictured), the new chairman at London-listed mining group ENRC,
has asked several board members to resign, according to the Sunday Times. Dalman
took up the post last month with permission to shake up the board. The Kazakh govern-
ment last year staged a dramatic boardroom coup that ousted City grandees Sir Richard
Sykes and Ken Olisa. ENRC did not return several calls for comment yesterday. Picture:
NEWS | IN BRIEF
Airbus in long fight over cracks
Airbus will need years to get past prob-
lems with wing cracks on its flagship
A380 passenger jet, the executive vice
president of programmes at Airbus told
German magazine Der Spiegel. This
problem will keep us busy for years,
Tom Williams was quoted as saying yes-
terday. European air safety regulators
last month ordered checks for A380
wing cracks for the entire superjumbo
fleet after safety engineers found cracks
in almost all planes inspected.
Etisalat eyes finance services
UAE telecoms operator Etisalat, which
saw $1.8bn (1.1bn) moved over its net-
work last year via money transfers, has
sought regulatory approval to expand its
financial services offerings in the Gulf
region, home to millions of expatriates.
Mobile money services allow customers
to pay bills or make remittances using
SMS text messages, often at a cheaper
cost than through banks or money
transfer firms.
ProSieben buying Endor stake
German commercial broadcaster
ProSiebenSat1 is to buy a majority stake
in British movie and television producer
Endor from producer Hilary Bevan
Jones, the head of ProSiebens produc-
tion unit Red Arrow told a German
newspaper. We are reaching a new
dimension with the takeover of British
production company Endor,
Handelsblatt daily cited Jan Frouman as
saying in an excerpt of an article due to
be published today. He declined to say
how much ProSieben was paying.
Why the bulls are building a head of steam
S
O its another week and the bull
market for stocks remains intact.
The S&P 500 has breached the
1,400 level for the first time since
June 2008, while in Europe equities
are at fresh year highs, with
Germanys Dax up over 21 per cent.
The FTSE is an underperformer, but
still up an acceptable seven per cent.
While some caution we must be
close to a top, others believe were in a
new trend, one thats now combined
with a powerful move out of govern-
ment debt. Its a view supported by
Bull and Bear Partners chief executive
Jack Bouroudjian. These are large
strategic asset allocations... that is why
I am a firm believer we are entering a
cyclical bull right now, he said.
In the US Bouroudjian is calling for
an expansion of earnings multiples to
sustain equities this after a big sell-
off in bonds thats dragged 10-year gilt
yields off post war lows to three-
month highs and last week caused US
treasury yields to lose nearly 30 basis
points in three days.
Investors have moved from worry-
ing about financial stability to hoping
for growth. We are not talking about
Chinese, Brazilian or other emerging
market or even European growth.
Asset price moves purely reflect a view
that America might finally be moving
into a self-sustaining phase.
You got the sense of the optimism
from the reaction to the US stress tests.
The headlines could have focused on
the fact that four banks failed, but
instead there was much fanfare that
15 passed. What we have is the begin-
ning of a belief that a more nor-
malised recovery is building.
As Lloyds Charles Diebel says: After
all the fire fighting and crisis manage-
ment of the past couple of years, it is
an attractive concept. However, we
would caution against getting too car-
ried away with such this time its for
real emotions. He points out were
still in a situation of mass liquidity
provision and policy maker support;
the taps remain wide open. The out-
look seems more benign. But investors
must ask if the policy settings are flat-
tering and if strength in the macro
outlook is overstated.
One investor who doesnt buy it is
M2 Capital Partners Irakli Menabde.
He says the sovereign debt crisis is not
over and downside risks for both equi-
ty and commodity markets remain
because of unemployment and infla-
tion. His strategy is to go long on
undervalued precious metals equities
and short on overvalued global equi-
ties. But of course that doesnt mean
in the short run, the bulls arent going
to get up an even bigger head of steam.
Ross Westgate co-hosts Worldwide
Exchange daily from London and anchors
Strictly Money on CNBC
CNBC COMMENT
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News
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THE private equity firm that lost con-
trol of Foxtons amid the housing slump
is on the verge of buying it back from
its banks.
BC Partners, led by managing part-
ner Charlie Bott, is set to take a majori-
ty shareholding for between 55m and
75m, two years after the estate agent
was shored up by a debt-for-equity swap
with Bank of America and
Mizuho.
The BoA deal has been
done and the Mizuho
sale is close to comple-
tion. The Foxtons man-
agement team will
retain its stake.
The deal will mark a
turnaround for Foxtons,
which struggled as
house sales plunged dur-
ing the recession.
BC Partners acquired
the chain for about
390m at the height of
the buyout boom in
March 2007, making an estimated
300m for founder Jon Hunt. The deal
was backed by 260m of debt from
Mizuho and Bank of America but BC
later admitted it was a mistake.
Foxtons struggled when the property
market dried up and in 2009 BC said
the estate agent had breached the
covenants of its bank debt but it was
still trading profitably.
Foxtons known for its branded
Minis has since reduced its reliance on
house sales by growing its lettings
arm. It bounced back last
year as the property market
improved. Annual revenues
rose 13 per cent to 110m. BC
Partners and Bank of
America declined to com-
ment and Mizuho could not
be reached yesterday.
Last month BC Partners,
the owner of gyms chain
Fitness First and Swedish
cable group Com Hem,
raised 6.5bn (5.45bn), in
the largest European
fundraising since the onset
of the financial crisis.
BY PETER EDWARDS
PROPERTY
1981
Jon Hunt sets up Foxtons as a single agency in
Notting Hill in West London.
1982
Introduces longer opening-hours and evening
and weekend viewings in a bid to win more
business from busy London workers.
2001
Launches its fleet of branded Minis which irri-
tate and delight in equal measure.
March 2006
A BBC documentary accuses its agents of
being unscrupulously aggressive. Foxtons
complaint to Ofcom was not upheld.
March 2007
Sold to private equity firm BC Partners, the
owner of Fitness First, for about 390m.
January 2010
BC Partners cedes control of the chain to
Bank of America and Mizuho after the prop-
erty market slumps.
September 2010
BC reportedly enters talks with its banks to
buy back debt from Foxtons.
BC goes back
to the future
with new deal
for Foxtons
TIME LINE | FOXTONS: A NOTTING HILL SAGA
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Flying with
RUSSIAN aluminium company Rusal
was forced to defend its choice of new
chairman yesterday after Sual
Partners, one of its main shareholders,
publicly panned the move last week.
Rusal said in a statement: Barry
Cheungs election as a chairman was
supported by a majority vote of the
board, including the independent
directors. This proves that his candida-
cy meets the interests of all sharehold-
ers, including minorities.
The firm continued: His appoint-
ment was also met by a marked rise in
the companys share price, which had
been declining over the past few days
under pressure from the emotional
and groundless statements made by
Sual Partners.
Barry Cheung was elected on Friday,
three days after former chairman
Viktor Vekselberg stepped down amid
an ongoing battle with Rusal
main owner Oleg Deripaska
(pictured) over the multi-bil-
lion dollar sale of a quarter
stake in Norilsk Nickel.
Vekselberg blamed his
departure on the deep crisis
of heavy debt laid on Rusal
by its management, but
Deripaska claimed the
chairman jumped
before he was
pushed for
missing board meetings.
Cheungs appointment prompted
Sual Partners the investment chan-
nel owned by Vekselberg, which holds
15.8 per cent of Rusal to criticise the
aluminium giant for not completing
a full-fledged examination of the can-
didates for the post of chairman.
Sual continued: The board of direc-
tors of the company, 80 per cent of the
assets of which are located in Russia,
should be chaired by a Russian citizen,
whose independence from any of the
major shareholders of Rusal is beyond
any doubt.
But Rusal refused to acquiesce to the
complaints, retorting: The appoint-
ment of a foreign citizen as chairman
of the board follows the widespread
practice of Russian companies and is
in line with global best-practice corpo-
rate governance.
Rusal operates in 19 countries across
five continents.
The aluminium giant concluded:
Rusal would like to reiterate that
Sual Partners destructive
actions not only damage the
companys reputation, but also
destroy its shareholder value.
With this in mind, we are con-
sidering the option of pursu-
ing legal action in order
to protect the compa-
nys interests.
Rusal defends
new chair to
shareholders
GAME group has just a week to secure
financial support as the stricken video
games retailer teeters on the brink of
administration.
The company, which has about
1,300 shops worldwide trading as
Game and Gamestation, revealed last
week it was holding talks with poten-
tial backers as it attempts to raise
more than 100m it needs to pay
lenders, suppliers and its rent bill due
on 25 March.
OpCapita, the private equity firm
that bought electricals chain Comet,
late last week put forward a rescue
deal to acquire Games debt from its
six lenders, led by Royal Bank of
Scotland, and pay suppliers outstand-
ing 40m bills in full.
A spokesperson for RBS said the
bank was continuing to engage with
all parties. However, talks appeared to
have cooled this weekend after insid-
ers suggested discussions were not
progressing quickly enough consider-
ing the short time frame.
The banks are understood to have
given OpCapita the go-ahead to hold
discussions with suppliers over the
potential rescue deal.
Games woes came to a head this
month after several major games
makers including Electronic Arts,
Capcom and Nintendo refused to sup-
ply Game with its new releases.
Just weeks after renegotiating its
covenants with its lenders, Game told
investors last week it was uncertain
whether any of the solutions being
discussed with suppliers and lenders
would be successful and warned that
equity in the firm could be left worth-
less.
Games share price have fallen to 95
per cent in the past year to just 3p.
Crunch time for
Game as rent
deadline looms
Barry Cheungs appointment as Rusal chairman has sparked unrest Picture: GETTY
BY LAUREN DAVIDSON
COMMODITIES
RETAIL
News
CITYA.M. 19 MARCH 2012 17
Rusal believes that none of the companys share-
holders should dictate or impose any decision to the
board... We are considering the option of pursuing
legal action.
Sual Partners destructive actions not only dam-

age the companys reputation, but also destroy its
shareholder value.
Rusal considers Mr Shtorkhs* personal comments

on the company to be inappropriate and reflecting his
personal judgment.
The share price had been declining over the past

few days under pressure from the emotional and
groundless statements made by Sual Partners.
War of words: Rusal's response to comments

from Sual on the election of its new chairman
*
Vekselbergs spokesman
Oleg Deripaska
controls Rusal
HOUSEHOLD finances remain under
intense pressure from rising living
costs, according to several leading
surveys released this morning.
Despite a slowdown in the UKs
official measure of consumer price
inflation in recent months, people
still fear more price hikes.
Households current inflation
observations climbed to a six-month
peak [this month], while price
expectations for the year ahead also
rose, the Markit household finance
index reported.
Markits headline rate slipped to
37.8 for March, down 0.9 points
from February. All scores below 50
indication a deterioration in peo-
ples finances.
Rising petrol prices are partly
responsible for higher inflation per-
ceptions, Markit said, while a sepa-
rate report from Lloyds TSB showed
an 8.9 per cent rise in vehicle fuel
costs last month, compared with a
year earlier.
The Lloyds spending power report
found that spending on essential
items jumped by six per cent in the
12 months to February, while
incomes grew by just three per cent
(see graphic, right).
Despite official figures showing
that inflation is declining, spending
on essentials is still heading in the
opposite direction, indicating that
consumers are not yet feeling the
benefit, the report said.
Hikes in utility bills were the
main driver, Lloyds said.
Meanwhile another survey, from
the Halifax, said that the cost of
running a home has increased for
seven in 10 Britons, in the last year.
The Halifax said this morning
that for one in 10 Brits, disposable
income has collapsed by over 300 a
month.
Yet the research claimed that 87
per cent of respondents have no
idea just how much of their income
is actually being spent paying these
rising costs.
We all need to be aware of the
reality of rising costs and try and
avoid slipping into the red, said
Paula Llewellyn, from the Halifax.
It is crucial that everyone takes
an active role in checking bills and
keeping an updated budget of
monthly expenditure in order to
pinpoint exactly where income is
being spent.
However, the Markit index for
March showed some signs that the
squeeze on households could be bot-
toming out.
Job security declined at the slow-
est rate since April 2010, it said,
while consumers feelings about
making major purchases was the
least negative since December 2010.
Savings are also being eroded at a
slower rate, the report found.
Households
hit by rising
cost of living
BRITISH holidaymakers splashed
12.4bn while abroad last year,
according to data from Visa Europe
released this morning.
The total was up by a steady two
per cent on the previous year, with
higher spending expected this sum-
mer despite ongoing economic woes.
Three in 10 people surveyed said
they are planning to holiday abroad
in June or September, allowing them
to remain in the UK for the Olympic
Games in July and August.
UK holidaymakers are planning to
spend an average of 3,890 on their
overseas breaks in 2012, an increase
of more than 300 from 2011, the
report said.
Spain remains the most attractive
getaway, with British sun-seekers
injecting 1.8bn into the troubled
Eurozone economy in 2011.
British travellers also spent 1bn or
more in France and the US. The top
five list of most popular destinations
is completed by Italy and Australia.
Accommodation is the largest
expense, followed by travel costs.
BY JULIAN HARRIS
UK ECONOMY
UK ECONOMY
@
@
MORE NEWS
ONLINE
www.cityam.com
News
18
CITYA.M. 19 MARCH 2012
@
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...yet Brits splash cash while on holiday
Chinas manufacturers turn to Europe for innovation
CHINESE manufacturers are set to
snap up a series of firms in Europe as
they try to fast-track innovation and
development, according to research
published today.
Large and medium-sized industrial
firms in the emerging market econo-
my are mulling more mergers and
acquisitions, according to business
advisory firm Deloitte. More than half
of the senior executives questioned in
the China Manufacturing
Competitiveness study said innovation
is the biggest challenge they faced.
Ross James, manufacturing M&A
partner at Deloitte, said: While a com-
petitive advantage on costs has helped
the development of Chinese manufac-
turing companies, they are also facing
numerous challenges and pressures
that should not be overlooked We
are likely to see more outbound M&A
activity from China, allowing enter-
prises to expand and leap-frog develop-
ment.
Last year a record 13 Chinese manu-
facturers bought into Europe in deals
worth more than 6bn, according to
figures from Deloitte.
BY PETER EDWARDS
M&A
HOUSE prices are seeing their best

start to the year since 2004, according
to a study out today from Rightmove,
while another study showed rental
prices are at record highs.
Average prices have increased 1.6
per cent this month to 236,939, tak-
ing the quarterly increase to 4.9 per
cent, while prices in Greater London
are up 1.3 per cent on the month and
7.3 per cent on the year to of 455,159.
Average prices in Kensington and
Chelsea broke the 2m mark in March,
higher than its previous peak of
1,995,389 in March 2009.
The traditionally buoyant spring
market has combined with a shortage
of supply and brisk turnover of proper-
ty, said Rightmoves Miles Shipside.
The result is another new record
for average asking prices in the capital
this month, representing an increase
of nearly 600 a week over the last year
and underlining Londons continuing
property market strength.
Meanwhile a study from
FindaProperty.com found the average
monthly asking price for renting a flat
in the UK has risen 2.5 per cent on the
year to 833 in February.
The bottom end of the market has
seen the most inflation, with studio
flats going for 713 per month, up 5.9
per cent on the year, and one bedroom
flats rising three per cent to 657.
People are looking to flats as a
more affordable alternative to larger
houses, particularly if they are reluc-
tant to compromise on location, said
the report. However, that means ten-
ants looking for less expensive accom-
modation are coming under
increasing pressure as demand raises
prices of these sought-after properties.
London house
prices keep on
soaring upward
HOUSING
News
The price of essentials has jumped in the last year
P
i
c
t
u
r
e
:
G
E
T
T
Y
Figures show change in household spending
on items in the 12 months to February 2012
Source: Lloyds TSB
CITY CYCLISTS SHOW THEY CARE
WITH OLYMPIAN CHARITY RIDE
City workers are using pedal power to fight global poverty in the CARE Gold Bike Ride
T
EAMS from the City are
signing up to CAREs Gold
Bike Ride supported by
City A.M. on Saturday 23
June. The route will see cyclists
ride a minimum of 65 miles and
a maximum of 130 miles of the
Olympic Road Race route a
month before the nations com-
petitors take to the saddle.
A team from UBS Global Asset
Management is the latest to sign
up to the challenge. Fund
Analyst, Vincent, says, I was
reading City A.M. and it seemed
like a great thing to do with
work colleagues near London.
Were all looking forward to
experiencing the route the
Olympic cyclists will take and
supporting a worthwhile cause
at the same time.
UBS joins teams from other
City firms including Ashurst,
Deloitte and Centrica to take on
the challenge in support of CARE
International. The global aid and
development charity works in 84
countries to help the worlds
poorest people find lasting
routes out of poverty. CAREs
work includes micro-finance
projects that equip poor people
with financial services secure
savings, credit, insurance and
other products to break the
cycle of socio-economic exclu-
sion.
To be part of it, visit
www.carechallenge.org.uk/gold
or email challenge@careinterna-
tional.org.
' , , _
' , , _
Tonight's guest is Eamonn Butler who is
director of the Adam Smith lnstitute, rated
one of the world's leading policy think
tanks.
Eamonn Butler helped found the Adam
Smith lnstitute - paying his way through its
early years by editing The Broker, the
house journal of the British lnsurance
Brokers' Association, and teaching
business students at the University of
Westminster.
Eamonn contributes to the leading UK
print and broadcast media on current
issues, and his recent popular books The
Best Book on the Market, The Rotten State
of Britain and The Alternative Manifesto
have attracted considerable attention. He
says jazz is 'the music of choice for
dissidents and revolutionaries - like me'.
'Jazz in the City' on JazzFM is kindly
sponsored by global fund manager
Aberdeen Asset Management.
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20
The Capitalist
Got A Story? Email thecapitalist@cityam.com
Being Jubilee year, well be
seeing plenty of red, white
and blue in 2012. And as British
designer Corrie Nielson proved,
flying the flag isnt just about
looking good. Her Brit-inspired
fashion was modelled by catwalk
models Jade Parfitt (left) and
Jasmine Guinness (middle), pos-
ing alongside members of the
Queens Life Guard and George
a regimental charger. The group
posed at the Household Cavalrys
barracks in Hyde Park for the
launch of Fashion for the
Brave an initiative to raise
money for wounded servicemen
and their families. Now in its sec-
ond year, the fundraiser ends
with a September gala event at
The Dorchester Hotel, with
money going towards the
Household Cavalry Operational
Casualties Fund, and ABF The
Soldiers Charity. Time enough to
get George a Union Jack saddle?
MORE NEWS
ONLINE AT
@
@
www.cityam.com
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JAPANS economic recovery has
fuelled a resurgence in Japanese
travellers to the UK, helping to
boost overall tourist spend by 46
per cent last month compared with
the same period last year.
Japanese shoppers spent an aver-
age of 449 per store when shop-
ping in the UK, with overall spend
up by 35 per cent in the year to
date, according to Global Blue, the
tax-free shopping services company
that compiled the statistics.
The country entered the top 10
nationalities for UK tourist
spend in January for the first
time since March 2011, join-
ing big ticket spenders like
China, Nigeria, Saudi Arabia,
who are driving footfall across
popular UK destinations
including Londons West
End, and out-of-town
retail outlets like
Bicester Village.
It is testament to
Japans economic recov-
ery that the total value
of sales matches that of
Brazil, considered one of
the most important
emerging markets,
Richard Brown, vice
president of Global
Blue UK said.
The company anticipates travel
from Japan to surge this year and a
return to a six-figure visitor num-
ber last seen in 2010, led by single
women and baby boomers both
exercising high disposable
incomes.
According to luxury British
brands, including stationary firm
Smythson, these tourists are
increasingly drawn to tailor-made
and original purchases that have a
talking point over luxury brands
easily available at home.
A spokesperson for Smythson
said: Japan is fast becoming an
increasingly important part of our
international customer base.
Smythson has huge appeal with
Japanese customers who have a dis-
cerning eye for heritage and crafts-
manship and bespoke goods.
Smythson also pointed to an
increased demand for technol-
ogy accessories, closely fol-
lowed by travel and business
accessories.
Global Blue reported last
month that Chinese travellers
remained the biggest drivers of
growth to the UK, with south
east Asian tourists followed
closely behind, like by Hong
Kong and Singapore.
Japanese help
to boost UK
tourist trade
BY KASMIRA JEFFORD
RETAIL
News
BEST OF THE BROKERS
ANALYSIS l Kingfisher PLC
305
300
295
290
285
12 Mar 13 Mar 14 Mar 15 Mar 16 Mar
p
302.30
16 Mar
KINGFISHER
Bank of America Merrill Lynch rates the
retail group buy with a target price of
320p. The broker expects to see pre-tax
profits of 812m when the firm reports full
year results on Thursday, which could feed
through to a dividend hike. BAML thinks
Kingfisher has the scope to grow its mar-
gins further this year, with potential for its
UK stores to perform surprisingly well.
ANALYSIS l M&C Saatchi PLC
153
152
151
150
149
148
147
146
12Mar 13Mar 14Mar 15Mar 16Mar
p 150.50
16 Mar
M&C SAATCHI
Numis rates the advertiser buy and has a
target price of 167p. Ahead of the compa-
nys preliminary results tomorrow, the bro-
ker has forecast pre-tax profits of 15m on
revenues of 141m. Numis expects manage-
ment to keep their cautious outlook for this
year, but expects to see growth and margin
momentum, with scope for the introduction
of higher-margin mobile products.
ANALYSIS l Gem Diamonds Ltd
260
255
250
245
240
12Mar 13Mar 14Mar 15Mar 16Mar
p 252.00
16 Mar
GEM DIAMONDS
Northland Capital Partners rates the miner
buy and has a target price of 351p. The
broker is forecasting adjusted pre-tax prof-
its of $124.6m on revenues of $387.8m
when the firm reports its 2011 results
tomorrow. Northland has high hopes for an
impressive performance in spite of opera-
tional issues at Gems Ellendale mine at the
start of the year.
To appear in Best of the Brokers email your research to notes@cityam.com
I
NVESTORS are beginning to won-
der if this Energizer Bunny of a
rally can just keep going without
taking a break or a fall.
Every Friday for the past couple of
months, the question has hung in
the back of investors minds: Is the
stock markets rally strong enough to
continue without a correction?
Even with the S&P 500 above levels
unseen since before the financial cri-
sis, the answer remains: Yes.
The broad market index broke
through 1,400 a psychologically
important level for the first time in
four years last week. On Friday, the
S&P 500 closed at 1,404.17, its highest
since May 20, 2008. At Fridays close,
the index was up for nine out of the
past 10 weeks.
The rally has taken the Nasdaq up
to a 12-year recovery high, while it
lifted the Dow comfortably above
13,000 to its highest level since
December 2007.
We are seeing this unbelievable
rally in the market and yet the mar-
ket is unbelievably complacent. We
havent been this bullish for a long
time, said Randy Frederick, director
of trading and derivatives at the
Schwab Center for Financial
Research, based in Austin, Texas.
Indeed, the CBOE Volatility Index
or VIX, Wall Streets fear gauge,
plunged to a five-year low despite the
S&P 500s stunning gain of 12 per
cent for the year so far. The VIX meas-
ures the expected volatility in the
S&P 500 index over the next 30 days
and generally moves in the opposite
direction of the broad market.
Investors often use VIX options and
futures as a hedge against a market
decline.
Frederick said the only concern is
the wide spread between second- and
third-month VIX futures, suggesting
a rise in volatility in the longer term.
But the front-month futures that
expire this week have come down to
levels near the spot VIX. The VIX fell
6.2 per cent on Friday to end at 14.47,
its lowest close since June 2007.
I would like to see the VIX around
17 just because it tends to have a sig-
nificant pop when there is bad news
at current levels, Frederick said,
adding that there isnt that much
negative news out there.
Further evidence of the markets
bullish sentiment: The S&P 400
Midcap Index has popped above the
1,000 mark, an area of strong resist-
ance since last year, according to
Ryan Detrick, a senior technical
strategist with Schaeffers
Investment Research, in Cincinnati.
Historically, April has been a strong
month so we can even see the market
going up to 1,440, which is the high
made in May 2008, Detrick said.
THE WALL STREET WEEK AHEAD
Japanese shoppers spend on
average 449 per store on UK
shopping trips.
Grange City Hotel
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delicious selection
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Japanese delicacies.
Takeaway opti ons
available; pre-booking
not required.
Find us between
Tower Hill underground and
Fenchurch Street rail stations.
News
TODAY
I anticipate a quiet start to the week,
with a lack of economic announce-
ments from the UK and the US. All
eyes are likely to focus on the
Eurozone as we get further indication
of the health of one of its largest
economies. Italy reports industrial
order and sales numbers at 9am for
January. The recent trend for these
has been negative but any uptick is
likely to be received well by traders.
TUESDAY
UK CPI and RPI are due at 9.30am.
Market participants will be looking
for a steer on where inflation is head-
ing. Both have been forecast to move
lower on a year-on-year basis, giving
the Bank of England further breath-
ing room with monetary policy.
Cairn Energy reports full-year num-
bers. Having reduced its exposure in
India and returned a significant
amount of cash to investors, attention
is on its progress in the Arctic region.
WEDNESDAY
On Budget day, a number of stocks go
ex-dividend: Aviva (16p),
InterContinental Hotels (24.7p),
Millennium & Copthorne (10.4p divi-
dend plus 4p special cash payout),
Standard Life (9.2p), Smiths Group
(11.75p) and Segro (9.9p).
Bank of England minutes are due at
9.30am. Analysts will be watching
closely for any clue on how dovish or
hawkish the MPC members are.
Results due: J. Sainsbury (fourth
quarter), Imperial Tobacco (second
quarter) and Premier Foods (full year).
THURSDAY
Its all about retailers, with February
UK retail sales numbers announced at
9.30am. Month-on-month figures are
expected to dip slightly, but the annu-
al trend should creep higher. Any
improvement in these numbers is like-
ly to read across positively into the
share price of retail stocks.
Kingfisher reports full-year num-
bers. Recent comments from the
chief executive indicate that he is
more optimistic about the UK, while
France could begin to turn around
after recent measures by the ECB.
Retailer Next reports full-year
numbers. It has bucked the trend as
it continues to power onwards and
upwards. Good management along
with efficient handling of cash and
selling goods that the consumer
wants should stand it in good stead.
FRIDAY
A further sign of an improving econo-
my across the pond is likely to come in
the form of new home sales figures.
With unemployment and retail sales
showing an upward bias, market
watchers will be looking for recovery
in the housing market. Any uptick
could be received well by investors as
further proof of the USs resilience.
Manoj Ladwa, professional trader at ETX
Capital, is running an open long/short port-
folio using his systematic trading method
and keeping a daily blog on its performance.
To follow Manojs trading journey more
closely go to: www.etxcapital.co.uk/manoj
MANOJ ON THE
MARKETS
MANOJ LADWA
Budget week
will see Italy,
inflation and
retail in focus
Towry
The wealth adviser has announced that
Glyn Jones is stepping down as chair-
man. He will be replaced by Gerald
Corbett, currently a non-executive direc-
tor. Jones has served as chairman for the
last five and a half years and presided
over Towry Laws acquisition of Edward
Jones in November 2009.
West African Minerals
Following the acquisition of CMC
Guernsey by West African Minerals, the
natural resources investment company,
Brad Mills has been appointed chief exec-
utive. Mills is managing director of
Plinian Capital, a private mine investment
firm, and is also chief executive of
Mandalay Resources, a Canada-based
mining company. He was previously pres-
ident of BHP Billitons base metals divi-
sion, and is non-executive director of
Norilsk Nickel.
ENK
Dean Stuart has been appointed chief
operating officer of ENK, the nickel lat-
erite producer. He will be part of the
executive management team focused on
growing ENKs worldwide interests.
Stuart is a mining engineer and has pre-
viously worked at Avocet Mining and
Aurora Gold. He has extensive experience
in the mining industry in south east Asia
and Australia.
Ogier
Richard de Lacy is leaving 3 Stone
Buildings, his commercial chambers in
Lincolns Inn, to become head of Ogiers
Cayman litigation practice from 19
March. De Lacy brings expertise in com-
mercial litigation and insolvency cases.
He replaces Chris Russell, who is leaving
Ogier after seven years.
CITY MOVES | WHOS SWITCHING JOBS Edited by Tom Welsh
+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
Carey Olsen
The leading legal services provider, with
offices in London and the Channel Islands, has
announced that Elaine Gray is joining its
Guernsey litigation and dispute resolution
group. Gray is the second senior level appoint-
ment to the department in less than a year,
following the arrival of contentious trust spe-
cialist Michael McAuley in July 2011. Gray is
an established commercial litigation lawyer,
with over sixteen years experience, and has
practiced in Guernsey and the Cayman
Islands. She joins the firm from AO Hall,
where she was partner.
E
VEN the staunchest opponent of
George Osborne would have to con-
cede that there is no silver bullet to
reduce the deficit and boost growth
that can come out of Wednesdays Budget.
So, what do we expect? Clearly some
quick, high level cost-cutting measures. The
personal allowance is already pledged to
increase to at least 8,105. There may be
some cuts to direct taxation at the lower
ends, but a reduction in VAT although
agreed to be the quickest way to get money
in the consumers hand would be a sur-
prise. Will the 50 per cent tax rate go? There
has been intense speculation at the week-
end; we will soon find out what, if any-
thing, has been decided.
George Osborne should focus on three policy pillars of reform
Business Features| Entrepreneurs
23
Entrepreneurs wish list
for Wednesdays Budget
So what will the government do to
reward and incentivise the people and busi-
nesses with the imagination, determina-
tion and drive to help pull the economy out
of the doldrums? Sadly, we suspect the
answer is: not much.
However, entrepreneurs should not be
too disheartened there are already quite a
few measures in place to support them
which are simply not being taken up.
Deloittes recent entrepreneurial survey
found that over 75 per cent of all entrepre-
neurial businesses surveyed failed to claim
any research and development (R&D) tax
credits in the last three years. Our experi-
ence is that many entrepreneurial compa-
nies can claim at least some R&D relief
offering, in many cases, substantial reduc-
tions in tax payable or cash repayments. So
what else are entrepreneurs missing? Here
are just a few things:
First and foremost, every entrepreneur
should be ensuring they understand the
Entrepreneurs Relief (ER) rules. Finding out
on disposal that your shares fall just short of
the ER threshold is a problem for many exit-
ing shareholders. In addition, there are
opportunities to maximise the relief where
spouses are active in a business. If theres
one message wed send to all entrepreneurs,
it is that you should make sure you review
this now to ensure you maximise your cash
Before introducing costly
new schemes government
should first do less harm
L
ETS face it. In asking for government favours
entrepreneurs are a vested interest like all the
rest. Because they arent collectivised in the
same way as more experienced lobbyists, they
dont get the same hearing as big business. Yet what
they lack in voice they make up for in value for money.
Politicians are more than happy to throw a few mil-
lion here or there for the good publicity that comes
with claiming to stimulate new businesses.
This isnt to say that the government shouldnt
help entrepreneurs. As Deloittes Debbie Griffiths
argues (below), there are plenty of tax breaks that
are making a real difference. As the American econ-
omist Milton Friedman said: I am favour of cutting
taxes under any circumstances and for any excuse,
for any reason, whenever its possible.
However, there are plenty of bad ideas for stimu-
lating more start-ups out there. Governments back-
stopping lending to businesses is highly
questionable. That the private sector isnt willing to
shoulder the loans suggests that its probably not
worth the risk. Also, there is a positive correlation
between the degree of risk and how potentially dis-
ruptive an start-up can be understandably, a gov-
ernment will want to limit the danger of throwing
money at bad ideas, but this also risks disordering
the priorities of the entrepreneurial process.
Yet the government is already throwing money at
young people to encourage them to go to university.
Perhaps there is something to be said in being equal-
ly indiscriminate with loans to young people starting
businesses. It would be a more level playing field.
In any case, most of the suggestions in the entre-
preneurs Budget (right) are for the government to
stop doing things. A classic example of this outside
of the Budget will play out when the Department for
Culture, Media and Sport publishes its Green paper
on the Communications Bill at around the same
time. Its widely expected to be packed full of poli-
cies that will bring a wrecking ball to the sponta-
neous tech start-ups of Silicon roundabout
(appropriated by the government as Tech City).
Blocking websites and the forced promotion of
licensed websites by search engines are just two of
the policies that could undermine disruption.
Primum non nocere first, do no harm should be
the chancellors mantra.
philip.salter@cityam.com
Twitter: @Philip_Salter
PHILIP SALTER
DEPUTY BUSINESS
FEATURES EDITOR
CITY A.M.
UTILISE WHAT
GOVERNMENT
ALREADY GIVES
DEBBIE GRIFFITHS
E
NTREPRENEURSHIP is already on the
rise in Britain, with a record number of
new businesses created in 2011. But
while we give a loan to someone to study
business, we often ignore them when they
want to start one. Surely a sensible economic
strategy encourages both higher education and
enterprise? Neither a degree nor being an
investment banker fully prepared me for run-
ning a company. I have learned considerably
more from the ground up on a shoestring budg-
et. And I know one of the biggest challenges
for any start-up is access to appropriate financ-
ing. But the amount of money needed to build a
new business is often too small to interest
lenders.
Thats why Im proud of the efforts of
Virgin Media Pioneers, a community of thou-
sands of young entrepreneurs, in suggesting
and championing a fund on comparable terms
to student loans. There is speculation the
Budget could attempt to address this. If so, it
will transform the business prospects of thou-
sands of people. My own business would have
been further ahead had such a fund been
available.
But for it to be successful there must be
support beyond just cash. Having a trusted
mentor and a network of like-minded entre-
preneurs will be vital in reducing the risk of
failure. Any new initiative has to put long-term
guidance and encouragement at its heart.
This Budget is a real opportunity to
empower young entrepreneurs who can help
reverse rising unemployment and return the
countrys economy to growth again.
Sarah Hilleary is the founder of b-tempted.
SARAH HILLEARY
C
URBING public spending keeps down bor-
rowing rates, but we need a growth agen-
da, too, and specifically we need
encouragement for the entrepreneurs
who will create the new wealth and the new
jobs of Britains future.
We don't need a few more token sums avail-
able to approved borrowers; we need instead a
shift that favours and exalts entrepreneurship. I
have backed enterprising friends setting up
new companies and have seen the obstacles
they face. I watched Regius Cigars achieve suc-
cess with top quality Nicaraguan cigars against
the odds, and want the UK to develop a culture
that facilitates and rewards such ventures.
The 50p top tax rate raises no money. Many
analysts point out that when the damage it
does to the economy is included, it loses rev-
enue. It punishes achievers and reinforces the
toxic message that success is somehow antiso-
cial. We should instead be encouraging others
to emulate the success of the achievers, and
encourage the achievers to invest in those
attempting to follow them.
The income tax threshold should be raised to
10,000 and then to 12,000 to take people at
or below the minimum wage out of income tax.
This makes employment more attractive and
benefits less attractive, and increases the pool
of those willing to work. Crucially, the chancel-
lor should set up a group tasked to find ways of
making self-employment easier, removing in
one go many of the burdens faced by start-ups.
We want a clear message from the Budget:
Britain backs its entrepreneurs.
Madsen Pirie co-founded the Adam Smith
Institute.
MADSEN PIRIE
R
ED tape wrecks business. Thats the mes-
sage that the chancellor needs to act on if
he wants to deliver a true entrepreneurs
Budget. The political classes often believe
that we need regulation to protect us from our-
selves. It strikes me that what seems like com-
mon sense in Whitehall can often seem pretty
archaic when you emerge into the real world.
By using the Budget to create one of the
worlds most deregulated trading environments
the chancellor could send a strong message
that this government has skin in the game.
Focus on jobs, thats my advice. I would like
to see a combination of national insurance
breaks for hiring the unemployed combined
with looser regulations on employee contracts.
Trust me, no one in business hires people to
fire them. You hire to grow, but the punitive
perceptions of employee regulation deters firms
from taking the leap to employ.
When you start a business you have enough
of a burden in simply trying to survive.
Government could acknowledge this by imple-
menting a regulation escalator that starts light
and climbs as companies become more sustain-
able. In turn, every excessive health and safety
requirement, every onerous reporting expecta-
tion stops businesses from doing what we need
them to do, trade.
Nearly two-thirds of new job creation comes
from businesses that are less than five years
old. These businesses are like toddlers, young
and vulnerable. Red tape strangles them and if
the chancellor wants an enterprise led recovery
he needs to cut it.
Michael Hayman is co-founder of Seven Hills
and StartUp Britain.
MICHAEL HAYMAN
FU
N
D
IN
G
TA
X
R
EG
U
LA
T
IO
N
out when you exit. Secondly, if you are
actively seeking investors, you should
review whether your company qualifies for
Enterprise Investment Scheme relief.
Investors who are tired of low interest rates
are actively seeking exciting investment
opportunities and offering them a tax
break to do so might be the difference
between you and the next business. 20 per
cent income tax relief, capital gains tax
deferral and a possible tax free exit is not to
be sniffed at.
Finally, you need to be entrepreneurial in
your attitude to your employees.
Employment tax costs keep rising. Allowing
your employees to share in equity upside is
one of the best ways of reducing your direct
employment costs and tying your best peo-
ple into the business. Such schemes are easy
to put in place and tax certainty can be
attained. So dont expect too much from
the 2012 Budget, but for those entrepre-
neurs who are not maximising the opportu-
nities already out there, there is still plenty
of good news if you look for it in the right
place.
Debbie Griffiths is a tax partner in Deloittes
Entrepreneurial Business Practice.
A
LL eyes are on the chancellor ahead of
next weeks Budget. Will he take the
opportunity to cut UK taxes to help stim-
ulate economic recovery? There is an
opportunity to review not just corporation tax
but many of the consumer taxes like air passen-
ger duty (APD). Five years ago the tax that you
paid on a business class seat to Shanghai was
80 as of 1 April 2012, it will reach 184. In the
forthcoming Budget, the government plans a
further inflationary rise to APD in 2013, follow-
ing on from the double-inflationary rise that
came into effect this year. The level of UK air
tax has over the years increased to a level unpar-
alleled anywhere else in the world. The effects
of this are fast becoming a barrier to Britains
global competitiveness.
Currently, only five European countries levy
a form of aviation tax. Of those five, Britains is
by far the highest. In fact, since APD was intro-
duced here in 1994, annual revenue raised by
the tax has increased by 250 per cent. This year
alone, 2.6bn of holidaymakers and business
travellers money will go to the Treasury as a
result. And by 2015, the government has stated
it will increase revenue from APD by a further
1.2bn.
We should not be fooled into thinking that
this is about the environment. The rises in APD
come at a time when the new emissions trad-
ing scheme (ETS), an environmental tax on avi-
ation, is being introduced. The government has
no plans to offset the revenue raised from the
ETS against APD. The reality is that since its
introduction, we dont know if a penny of rev-
enue from APD has ever been spent on the envi-
ronment.
The travel industry and its travelling public
are willing to pay their way, but a 26-fold tax
increase since 1994 goes against common-sense
and economic logic, and is disproportionate
compared to the taxes paid by other transport
sectors. The decision to increase the tax at such
a rate places the UK at a global competitive dis-
advantage. For a government that has said the
economy is its number one priority this deci-
sion appears to defy reason.
The City is one of the worlds premier busi-
ness destinations and as we operate in a global
economy, international connectivity is
absolutely fundamental to our retaining that
position. However, over the years the increases
in APD along with a lack of new aviation capac-
ity have begun to affect the UKs international
connectivity. Foreign businesses are being taxed
an estimated 300m each year just to do busi-
ness on British soil and our own businesses suf-
fer the additional tax burden just to fly
overseas. Not surprisingly many businesses,
especially from the high growth Bric countries,
are choosing to do business elsewhere.
Survey after survey shows that airlines and
airports are losing routes to European rivals
such as Paris and Amsterdam because of the
UKs exorbitant APD. Schiphol Airport and
Frankfurt International Airport each serve six
Chinese cities while only three Chinese cities
are served from Heathrow, our main interna-
tional airport. Since 2007, when the govern-
ment introduced further significant hikes in
the tax, Heathrow has fallen from first to fifth
place in Europe in terms of destinations served.
Britain is also losing out on billions of
pounds of inbound tourism because foreign
travellers are opting to avoid the UKs high
flight taxes. As the tax is paid on departure, the
fear is that inbound holidaymakers and busi-
ness travellers may simply by-pass Britain alto-
gether an issue of real concern in the run-up
to the 2012 Olympics. British holidaymakers are
also facing higher prices and more limited
choices. Tellingly, governments in Denmark,
Sweden, Malta and the Netherlands all aban-
doned their versions of APD after assessing the
negative economic impacts on their economies.
An assessment of the impact of APD on the
UK economy has never been done by the UK
government. The Fair Tax on Flying Alliance, of
which ABTA is a member, is calling on the chan-
cellor to urgently commission an independent
study of APDs overall economic impact. Many
British businesses strongly believe that an inde-
pendent economic assessment would confirm
that the negative impact of APD on UK GDP sig-
nificantly outweighs its revenue benefit for the
Treasury. Indeed, a British Chambers of
Commerce report recently concluded that the
Governments planned APD increases could
cost the British economy 100bn by 2030, and
cost 25,000 jobs in the next five years alone.
Until recognition is given to the immense
value derived to the UK economy from air trav-
el, and a more equitable tax regime is estab-
lished, APD will continue to inflict economic
damage to the industry, the City and the UK
economy. We strongly urge the chancellor to
use next weeks budget as an opportunity to
scrap the planned APD increases, as a prelude
to the abolition of this tax in favour of a fairer
tax regime.
Mark Tanzer is the chief executive of Abta The
Travel Association. Abta is a member of the Fair Tax
on Flying Alliance.
24
The Forum
The 26-fold increase in tax
since 1994 goes against
common sense and logic
The UK is already losing out
thanks to an uncompetitive
airline duty: Dont put it up
cityam.com/forum
MARK TANZER
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
Twitter: @cityamforum;
on the web: cityam.com/forum;
or by email: theforum@cityam.com.
Top responses will be reprinted in The Forum.
25
The government
should not be in
the business of
picking winners
Bold businesses
must be able to
grow in Britain
F
AIRNESS has rightly become central to
the Budget debate. Personally I would like
to see the income tax threshold raised, to
allow lower earners to keep more of their
hard-earned cash. But a bigger test of success
for this Budget will be what measures the
chancellor can introduce to drive economic
growth. By the chancellors own calculations,
only one third of the deficit reduction pro-
gramme will be financed through cuts in pub-
lic expenditure. The remaining two thirds will
be achieved through economic growth.
Yet the crisis in the Eurozone means the
threats to our future prosperity are now
arguably greater than when the chancellor
first laid out his spending plans. As the Office
for Budget Responsibilitys regular revisions to
its economic forecasts keep reminding us,
these are no ordinary economic times. This is
why growth has to be the focus of the Budget
and why we need a Budget for business.
Yet when the government needs to be offer-
ing every encouragement to businesses it has
become deeply unfashionable to do so. The
Labour leader Ed Miliband argues that the
state knows best and must intervene to sepa-
rate business winners from losers, predators
from producers. Of course, there is a role for
the state to play in supporting our economic
growth. The chancellor is right to be bringing
forward infrastructure investment and
encouraging pension funds to put up the cash.
But harking back to a 1960s-style industrial
policy cannot restore our economic prosperity.
Instead, the budget has to recognise that we
need a step change in our approach to enter-
prise. We need to encourage a spirit of adven-
ture, where sensible risk-taking can flourish.
Otherwise, entrepreneurs will not take the
risks that are essential to creating the next
Body Shop, the next Dyson, the next White
Company and the next lastminute.com. These
are all British success stories, and it is fair to
Clean lines
[Re: Tax reform is long overdue:
The coalition must act to boost
long-term growth, yesterday]
Do you remember Herman Cains
9-9-9 tax plan? How about a UK
version 20-20-20? 20 per cent
personal tax rate, 20 per cent cor-
porate tax, 20 per cent VAT on
everything? Alongside 20-20-20
most tax concessions should be
eliminated: non-doms, film indus-
try, pension contributions. A sim-
ple and elegant solution.
Colin English
Accounting tricks
[Re: Osborne must be bold and
cut taxes, yesterday]
I suspect the chancellor will
increase the personal allowance
restriction and pre-announce
that the 50p rate will go next
year, while raising the 40p
threshold by a reasonable
amount. The former allows him
to say hes not scrapping 50p
while were still in a crisis. The
latter allows him to give vital
help to middle England.
John Moss
Speak your mind
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take part. Got a sharp comment
on one of todays columns or
rapid response topics? Do you
have another subject relating to
business and the economy you
want to share your opinion on?
We want to hear your views.
Readers are invited to comment
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The best responses will be
reprinted in The Forum.
RAPID RESPONSES
SAM GYIMAH
BY DAVID WOOTTON
The Forum
W
ITH only a
few days to
go until the
c h a n c e l l o r
reveals the Budget for
2012, the nations busi-
ness community will be
hoping that this March
stays true to the mes-
sage of spring, bringing reinvigoration and new
growth.
While the grip of the economic downturn has
remained firm, the government has had to focus on
slowing spending growth to reduce the deficit. But
the outlook is not entirely gloomy.
It was encouraging to hear business secretary
Vince Cable reiterate his commitment to putting
growth and job creation at the centre of govern-
ment policy at the Trade and Industry dinner at the
Mansion House, a fortnight ago.
For centuries, the City has been at the heart of
funding for international trade and today it contin-
ues to fulfil that role, as a servant of the global busi-
ness community.
We must not forget these deep roots. From the
medieval Stocks Market to the modern Stock
Exchange, from coffee-houses to commodity deriva-
tives the private sector has always played an
essential part in generating the investment, jobs and
wealth needed to sustain the economy when public
expenditure is under pressure.
At present, the UKs financial services industry
contributes an enormous amount to the UK, bring-
ing in tax receipts to the tune of 63bn in the
2010/11 tax year, and generating 115.2bn for the
economy constituting 9 per cent of economic out-
put in 2010. Currently, the financial services sector
in the UK employs over 1m people, with 315,000
jobs located in the City of London.
Sustainable job creation is the key to getting us
on the road to economic recovery, and so we must
embrace our role as an international business leader
and take the Citys offering to the rest of the world.
Only last Thursday, the City of London celebrated
the 10th anniversary of its City Programme, which
since 2002 has been bringing young practitioners,
regulators, central bankers and policy-makers from
the more recent EU member states into London for
attachments to companies and public bodies. The
event was chaired by Miroslaw Kachniewski, presi-
dent of the management board at Polands SEG.
The EU is a significant market, but the City has
yet broader horizons. It is predicted that over the
next five years, emerging economies will account for
more than half of global growth, and will act both
as generators and consumers of capital. This is why
I will travel widely throughout my time in office, to
forge, reinforce and, importantly, renew partner-
ships with centres of trade and industry all over the
world.
Whatever the future brings, we can be sure of
one thing: that UK business will stand tall. Time and
time again, London has shown impressive resilience
despite economic downturns, and has acted as a
shock-absorber not only for our partners across
the UK, but also for Europe itself.
The rich history and culture of the United
Kingdom owes much to the industriousness of its
people and the careful cultivation of trade links.
Reinforcing these links will be essential in ensuring
that the next chapter, for both the UK and the wider
world economy, proves a prosperous one.
David Wootton is Lord Mayor of the City of
London.
The City can help us to
put a spring in our step
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
say that Dysons success has come from the
hard work, patience and ambition of its
founder, not because some state-run bank
identified the company as a potential winner.
Admittedly, the chancellors hands are tied
by the need to cut the deficit. But there is still
a lot that can be done. In the short term, using
the governments balance sheet to lower
banks borrowing rates and hence the rates
offered to their business customers (credit eas-
ing) could provide a much needed adrenaline
shot to the economy. In the longer term, accel-
erating the pace of our recovery means chang-
ing the lending landscape for businesses,
allowing non-bank institutions as well as inno-
vative, internet-based providers of finance to
all compete to offer firms a lower cost of bor-
rowing. The government must look closely at
the recommendations to support alternative
providers of finance published last week by the
Department for Business, Innovation and
Skills taskforce chaired by Legal & General
chief executive Tim Breedon.
To pay down the deficit and ensure our long
term prosperity, re-distribution is not enough.
After all, a fair share of nothing is not worth
much. We need to be backing innovative and
entrepreneurial businesses to grow. This is the
real challenge of the Budget.
Sam Gyimah is the Conservative MP for East
Surrey and is leading the Beyond the Banks campaign
to diversify the SME lending landscape.
EU SHARES
AIR LIQUIDE.............100.35 0.10 101.00 80.90
ALLIANZ .....................94.00 1.50 107.45 56.16
ANHEUS-BUSCH INBEV54.780.29 55.19 33.85
ARCELORMITTAL......15.83 0.10 26.40 10.47
AXA.............................13.18 0.25 15.97 7.88
BANCOSANTANDER ..6.34 0.09 8.42 4.94
BASF SE .....................67.98 0.54 70.22 42.19
BAYER.........................54.35 -0.81 59.44 35.36
BBVA.............................6.67 0.12 8.81 4.94
BMW............................73.02 -0.74 73.95 43.49
BNP PARIBAS ............39.00 0.06 55.44 22.72
CARREFOUR..............19.34 0.46 28.39 14.66
CRH PLC.....................16.79 0.11 17.03 10.28
DAIMLER ....................47.23 -1.22 53.95 29.02
DANONE .....................52.97 0.23 53.46 41.92
DEUTSCHE BANK......38.67 0.25 44.56 20.79
DEUTSCHE BOERSE.50.01 1.07 57.68 35.65
DEUTSCHE TELEKOM 8.87 0.04 11.38 7.88
E.ON............................18.64 0.18 23.54 12.50
ENEL .............................2.86 0.01 4.86 2.78
ENI ...............................18.51 0.21 18.63 11.83
FRANCE TELECOM ...11.33 0.07 15.98 10.92
GDF SUEZ...................20.01 -0.06 28.98 17.65
GENERALIASS. .........13.46 0.43 16.44 10.34
IBERDROLA .................4.53 0.10 5.95 4.16
INDITEX.......................71.30 1.18 71.51 50.92
INGGROEP CVA..........7.20 0.05 9.50 4.21
INTESA SANPAOLO.....1.56 0.01 2.20 0.85
KON.PHILIPS ELECTR16.17 0.16 23.01 12.01
L'OREAL .....................89.20 -0.20 91.24 68.83
LVMH.........................135.40 0.40 136.80 94.16
MUNICH RE...............116.00 0.85 117.55 77.80
NOKIA...........................4.02 0.20 6.36 3.33
REPSOL YPF ..............18.85 -0.34 24.90 17.31
RWE.............................36.90 0.43 47.29 21.15
SAINT-GOBAIN...........37.12 -0.13 47.64 26.07
SANOFI .......................59.27 -0.06 59.56 42.85
SAP .............................54.51 0.00 54.79 32.88
SCHNEIDER ELECTRIC53.17 0.57 61.83 35.00
SIEMENS.....................79.71 1.22 99.39 62.13
SOCIETE GENERALE25.22 0.50 49.47 14.32
TELECOMITALIA.........0.88 -0.01 1.10 0.70
TELEFONICA..............12.81 0.11 18.34 12.32
TOTAL .........................42.53 0.06 43.73 29.40
UNIBAIL-RODAMCOSE156.552.60 162.95 123.30
UNICREDIT ...................4.16 0.05 12.44 2.20
UNILEVER CVA ..........25.94 -0.04 27.16 20.90
VINCI ...........................40.79 0.09 45.48 28.46
VIVENDI ......................13.95 -0.09 21.37 13.54
VOLKSWAGEN VORZ141.25 -0.70 152.20 86.40
Price Chg High Low Price Chg High Low
WORLDINDICES
US SHARES
3M.................................89.56 -0.44 98.19 68.63
ABBOTT LABS............59.42 0.31 59.72 46.29
ALCOA.........................10.54 0.19 18.47 8.45
ALTRIA GROUP...........30.03 0.00 30.71 23.20
AMAZON.COM...........185.05 0.62 246.71 160.59
AMERICAN EXPRESS 56.55 -0.17 57.38 41.30
APPLE........................585.57 0.01 600.01 310.50
AT&T.............................31.59 -0.05 31.94 27.27
BANK OFAMERICA......9.80 0.56 14.29 4.92
BERKSHIRE HATAWB81.07 -0.27 85.51 65.35
BOEING CO.................75.20 -0.23 80.65 56.01
CATERPILLAR...........113.58 0.13 116.95 67.54
CHEVRON..................110.28 0.25 112.28 86.68
CISCOSYSTEMS ........20.03 0.12 20.49 13.30
CITIGROUP..................36.69 0.42 46.90 21.40
COCA-COLA................70.16 -0.17 71.77 61.29
COMCASTCLASS A...29.50 -0.30 30.05 19.19
CONOCOPHILLIPS .....77.18 0.55 81.80 58.65
DU PONT(EI)DE NMR.53.38 -0.18 57.50 37.10
EMC CORP ..................28.89 -0.12 29.68 19.84
EXXON MOBIL.............86.44 0.35 88.13 63.47
GENERAL ELECTRIC .20.20 0.04 20.85 14.02
GOLDMAN SACHS GRP122.93-0.13164.40 84.27
GOOGLE A.................625.04 3.91 670.25 473.02
HEWLETTPACKARD..24.49 0.09 43.28 19.92
HOME DEPOT..............49.05 -0.15 49.71 28.13
IBM.............................206.01 0.01 207.52 151.71
INTEL CORP................27.73 -0.02 27.96 19.16
J.P.MORGAN CHASE..44.57 -0.13 47.80 27.85
JOHNSON & JOHNSON65.12 0.05 68.05 55.76
KRAFTFOODS A ........38.38 0.08 39.06 24.30
MC DONALD'S CORP.97.66 -0.38 102.22 72.89
MERCK AND CO.NEW38.03 -0.03 39.43 29.47
MICROSOFT ................32.60 -0.25 32.95 23.65
OCCID.PETROLEUM100.58 1.68 117.89 66.36
ORACLE CORP ...........29.74 -0.32 36.50 24.72
PEPSICO......................64.47 0.30 71.89 58.50
PFIZER.........................21.94 0.03 22.17 16.63
PHILIP MORRIS INTL..85.81 -0.09 86.17 60.45
PROCTER AND GAMBLE67.25-0.43 67.95 56.57
QUALCOMMINC.........65.41 0.20 65.62 45.98
SCHLUMBERGER.......76.76 1.84 95.53 54.79
TRAVELERS CIES.......59.20 0.12 64.17 45.97
UNITED TECHNOLOGIE85.48-1.41 91.83 66.87
US BANCORP DELAWRE31.65-0.03 31.89 20.10
VERIZON COMMS.......39.57 0.03 40.48 32.28
VISA CL A...................116.68 -0.32 119.36 70.45
WAL-MARTSTORES...60.84 -0.39 62.63 48.31
WALTDISNEY CO.......43.19 -0.28 44.13 28.19
WELLS FARGO& CO .33.89 -0.18 34.13 22.58
FTSE 100 . . . . . . . . . . . . . . 5965.58 24.86 0.42
FTSE 250INDEX........11792.92 93.64 0.80
FTSE UK ALL SHARE ....3098.09 13.58 0.44
FTSE AIMALL SH . . . . . . . . 807.21 4.15 0.52
DOWJONES INDUS 30 ..13232.62 -20.14 -0.15
S&P 500 . . . . . . . . . . . . . . . 1404.17 1.57 0.11
NASDAQCOMPOSITE ...3055.26 -1.11 -0.04
FTSEUROFIRST300 .....1106.79 4.62 0.42
NIKKEI 225 . . . . . . . . . . . . 10129.83 6.55 0.06
DAX 30PERFORMANCE..7157.82 13.37 0.19
CAC 40 . . . . . . . . . . . . . . . . 3594.83 14.62 0.41
SHANGHAISE INDEX ....2404.74 30.96 1.30
HANG SENG. . . . . . . . . . . 21317.85 -35.68 -0.17
S&P/ASX 20INDEX ......2535.10 5.00 0.20
ASX ALL ORDINARIES ...4364.70 -2.20 -0.05
BOVESPA SAOPAOLO..67684.13 -65.36 -0.10
ISEQOVERALL INDEX ...3359.34 38.10 1.15
STRAITS TIMES . . . . . . . . . 2904.76 -1.93 -0.07
IGBM. . . . . . . . . . . . . . . . . . . 856.04 6.75 0.79
SWISS MARKETINDEX...6341.33 9.11 0.14
Price Chg %chg Price Chg %chg Price Chg %chg
LONGDONCEFIXAM...........................................1649.00 2.25
SILVERLDNFIXAM..................................................32.49 0.11
MAPLELEAF1OZ ....................................................35.13 0.09
LONPLATINUMAM ...............................................1672.00 -8.00
LONPALLADIUMAM...............................................701.00 3.00
ALUMINIUMCASH.................................................2195.00 -1.00
COPPERCASH......................................................8490.00 23.00
LEADCASH...........................................................2095.00 -12.50
NICKELCASH......................................................19190.00 -155.00
TINCASH ............................................................23525.00 -325.00
ZINCCASH............................................................2076.00 3.50
BRENTSPOTINDEX ...............................................123.58 -2.38
SOYA.....................................................................1369.00 19.00
COCOA..................................................................2221.00 -119.00
COFFEE ..................................................................184.45 1.70
KRUG ....................................................................1723.20 9.20
WHEAT ....................................................................172.25 -0.12
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...........................................................0.263 0.00
LIBOR Euro - 12 months.........................................................1.472 -0.01
LIBOR USD - overnight ...........................................................0.148 0.00
LIBOR USD - 12 months..........................................................1.053 0.00
HaIifax mortgage rate..............................................................3.990 -0.02
Euro Base Rate........................................................................1.500 0.00
Finance house base rate.........................................................1.500 0.00
US Fed funds ...........................................................................0.250 0.00
US Iong bond yieId..................................................................3.410 0.00
European repo rate..................................................................0.156 0.00
Euro Euribor.............................................................................0.320 0.01
The vix index............................................................................14.47 -0.95
The baItic dry index.................................................................874.0 9.00
Markit iBoxx ...........................................................................238.09 -0.95
Markit iTraxx...........................................................................121.60 -4.72
BAE Systems . . . . . .316.5 1.5 340.8 248.1
Chemring Group. . . .440.0 3.7 736.5 368.8
Cobham . . . . . . . . . . .221.9 4.9 236.5 165.9
Meggitt . . . . . . . . . . . .408.3 5.5 409.5 304.9
QinetiQ Group. . . . . .149.8 -0.2 153.2 101.5
RoIIs-Royce HoIdi . . .842.5 4.5 846.0 557.5
Senior. . . . . . . . . . . . .199.0 5.0 201.0 135.0
UItra EIectronics . . .1779.0 29.0 1781.0 1305.0
GKN . . . . . . . . . . . . . .217.2 -2.4 245.0 157.0
BarcIays. . . . . . . . . . .254.0 4.8 308.9 138.9
HSBC HoIdings. . . . .580.4 5.6 667.2 463.5
LIoyds Banking Gr . . .37.5 1.1 62.4 21.8
RoyaI Bank of Sco . . .28.1 1.7 44.4 17.3
Standard Chartere .1662.5 37.0 1690.0 1169.5
AG Barr . . . . . . . . . .1245.0 53.0 1395.0 1031.0
Britvic. . . . . . . . . . . . .376.1 -11.0 444.0 289.9
Diageo . . . . . . . . . . .1524.5 -5.0 1553.0 1112.0
SABMiIIer. . . . . . . . .2608.0 -16.5 2668.5 1979.0
AZ EIectronic Mat . . .302.0 0.4 338.1 206.1
Croda Internation . .2238.0 13.0 2265.0 1593.0
EIementis. . . . . . . . . .187.8 1.3 196.1 107.5
Johnson Matthey . .2397.0 30.0 2405.2 1523.0
Victrex . . . . . . . . . . .1360.0 10.0 1590.0 1025.0
YuIe Catto & Co. . . . .251.0 14.4 253.7 148.0
C/$ 1.3175 0.0000
C/ 0.8315 0.0002
C/ 109.90 0.8282
/C 1.2026 0.0007
/$ 1.5845 0.0009
/ 132.22 0.0800
FTSE100
5965.58
24.86
FTSE250
11792.92
93.64
FTSEALL SHARE
3098.09
13.58
DOW
13232.55
20.21
NASDAQ
3055.26
1.11
S&P500
1404.17
1.57
Smith (DS) . . . . . . . . .178.8 -2.2 183.7 113.3
Smiths Group . . . . .1071.0 -4.0 1340.0 869.5
Brown (N.) Group . . .239.8 1.3 304.5 227.0
Carpetright. . . . . . . . .687.0 7.5 749.0 375.0
Debenhams . . . . . . . . .75.8 0.5 78.2 51.2
Dignity . . . . . . . . . . . .845.0 2.5 854.5 690.0
Dixons RetaiI . . . . . . .17.0 1.0 19.9 9.4
DuneImGroup. . . . . .509.5 3.5 524.5 383.9
HaIfords Group . . . . .295.8 -0.7 405.9 268.6
Home RetaiI Group . .116.9 2.9 228.5 72.5
Inchcape . . . . . . . . . .399.4 6.7 425.4 268.1
JD Sports Fashion . .768.5 2.5 1030.0 570.0
Kesa EIectricaIs . . . . .77.2 2.4 151.4 60.2
Kingfisher . . . . . . . . .302.3 2.6 303.4 217.0
Marks & Spencer G. .381.0 5.9 402.2 301.8
Next . . . . . . . . . . . . .2935.0 34.0 2952.0 1937.0
Sports Direct Int . . . .291.0 -2.5 296.1 180.0
WH Smith. . . . . . . . . .549.5 3.0 559.0 433.8
Smith & Nephew. . . .631.0 -2.0 715.0 521.0
Synergy HeaIth . . . . .841.0 10.5 981.0 809.5
Barratt DeveIopme . .146.0 -1.2 150.3 67.5
BeIIway. . . . . . . . . . . .851.0 15.5 855.0 540.5
BerkeIey Group Ho.1394.0 15.0 1414.0 1004.0
BaIfour Beatty . . . . . .289.0 -0.8 348.6 214.6
CRH . . . . . . . . . . . . .1409.0 24.0 1687.0 1053.0
GaIIiford Try. . . . . . . .620.0 -3.0 624.1 332.8
Kier Group. . . . . . . .1205.0 -1.0 1489.0 1097.0
Drax Group . . . . . . . .527.5 0.0 581.5 371.9
SSE. . . . . . . . . . . . . .1320.0 -11.0 1423.0 1193.0
Domino Printing S . .556.0 -4.5 701.5 434.3
HaIma . . . . . . . . . . . . .397.5 -4.2 429.6 306.3
Laird . . . . . . . . . . . . . .213.6 6.7 216.4 127.9
Morgan CrucibIe C . .341.0 1.5 360.0 224.0
Oxford Instrument .1262.0 34.0 1262.0 619.5
Renishaw. . . . . . . . .1427.0 31.0 1886.0 800.0
Spectris . . . . . . . . . .1770.0 -9.0 1823.0 1039.0
Aberforth SmaIIer . . .665.0 11.5 714.0 494.0
AIIiance Trust . . . . . .378.1 -0.1 392.7 310.2
Bankers Inv Trust . . .432.8 1.3 434.9 346.5
BH GIobaI Ltd. GB .1195.0 1.0 1212.0 1058.0
BH GIobaI Ltd. US. . . .11.6 -0.4 12.2 10.4
BH Macro Ltd. EUR. . .19.6 -0.1 20.2 16.3
BH Macro Ltd. GBP 2045.0 -2.0 2078.0 1661.0
BH Macro Ltd. USD. . .19.5 -0.2 20.2 16.2
BIackRock WorId M .700.0 2.0 815.5 574.5
BIueCrest AIIBIue . . .165.3 0.0 176.2 160.6
British Assets Tr . . . .130.0 1.2 139.4 109.0
British Empire Se . . .446.0 1.5 533.0 404.0
CaIedonia Investm .1555.0 1.0 1800.0 1337.0
City of London In . . .303.4 2.2 306.9 257.0
Dexion AbsoIute L . .141.2 0.1 150.0 130.0
Edinburgh Dragon . .247.5 -5.0 253.4 201.4
Edinburgh Inv Tru. . .502.0 2.0 504.0 421.9
EIectra Private E . . .1707.0 11.0 1755.0 1287.0
F&C Inv Trust . . . . . .317.2 0.4 327.9 261.5
FideIity China Sp. . . . .86.0 0.4 114.3 70.0
FideIity European . .1144.0 9.0 1287.0 912.0
HeraId Inv Trust. . . . .525.0 2.0 545.5 419.0
HICL Infrastructu. . . .119.6 0.2 121.3 112.7
Impax Environment . .99.5 -3.3 125.4 88.5
John Laing Infras . . .109.3 0.0 110.6 103.8
JPMorgan American.957.0 -8.5 971.0 721.5
JPMorgan Asian In . .202.0 1.5 244.0 170.1
JPMorgan Emerging.572.5 -5.5 610.5 480.1
JPMorgan European.732.0 -17.5 983.5 624.0
JPMorgan Indian I. . .375.4 -2.9 459.0 313.1
JPMorgan Russian .602.0 -2.5 741.0 415.1
Law Debenture Cor. .394.8 3.4 395.3 323.0
MercantiIe Inv Tr . . .1064.0 11.0 1119.0 823.0
Merchants Trust . . . .391.5 1.0 431.8 341.5
Monks Inv Trust . . . .340.2 -0.3 367.9 298.1
Murray Income Tru . .671.5 3.5 674.0 568.0
Murray Internatio . .1003.0 3.0 1004.0 818.5
PerpetuaI Income . . .272.0 0.6 276.0 236.5
PersonaI Assets T .34410.0 -90.0 35350.030210.0
PoIar Cap TechnoI . .391.1 1.1 391.5 299.5
RIT CapitaI Partn. . .1230.0 5.0 1360.0 1173.0
Scottish Inv Trus. . . .494.0 0.0 524.0 417.0
Scottish Mortgage . . .711.0 1.5 781.0 565.0
SVG CapitaI . . . . . . . .290.4 2.0 295.5 165.1
TempIe Bar Inv Tr . . .946.0 8.0 970.0 791.0
TempIeton Emergin .624.0 -1.0 684.5 497.0
TR Property Inv T . . .157.9 1.3 206.1 136.2
TR Property Inv T . . . .72.0 0.5 94.0 59.8
Witan Inv Trust . . . . .503.0 1.0 533.0 401.5
3i Group. . . . . . . . . . .219.2 5.1 301.1 166.9
3i Infrastructure . . . .122.5 0.5 125.2 113.6
Aberdeen Asset Ma .253.4 -0.8 265.8 167.8
Ashmore Group . . . .376.5 4.3 420.0 305.2
Brewin DoIphin Ho . .172.2 6.1 176.5 113.7
CameIIia. . . . . . . . . .9700.0-140.010950.08800.0
CharIes TayIor Co. . .135.8 -3.3 165.0 115.6
City of London Gr . . . .67.0 0.0 93.6 61.3
City of London In . . .360.3 -3.3 440.0 304.3
CIose Brothers Gr. . .812.0 17.0 865.5 590.0
CoIIins Stewart H . . . .98.0 -1.3 99.3 48.5
F&C Asset Managem .70.3 2.1 81.7 56.1
Hargreaves Lansdo .496.3 18.4 646.5 402.5
HeIphire Group . . . . . . .1.9 -0.1 16.0 1.4
Henderson Group. . .124.3 1.9 173.1 95.1
Highway CapitaI . . . . .13.0 0.0 21.0 7.0
ICAP . . . . . . . . . . . . . .431.5 19.3 541.5 311.6
IG Group HoIdings . .458.6 8.6 502.5 393.6
Intermediate Capi . . .292.9 3.9 345.0 197.9
InternationaI Per . . . .271.4 9.5 388.8 148.5
InternationaI Pub . . .120.0 0.5 121.5 109.1
Investec . . . . . . . . . . .399.8 -0.2 522.0 318.4
IP Group. . . . . . . . . . .116.5 -2.3 120.3 36.0
Jupiter Fund Mana . .238.5 -1.9 318.3 184.9
Liontrust Asset M . . .107.0 -0.3 109.0 57.9
LMS CapitaI . . . . . . . . .59.0 0.0 64.8 54.0
London Finance & . . .19.5 0.0 23.5 18.1
London Stock Exch 1014.0 15.5 1076.0 756.5
Lonrho . . . . . . . . . . . . .11.3 -0.5 19.8 8.9
Man Group. . . . . . . . .145.0 2.0 259.6 104.5
Paragon Group Of . .193.2 2.2 206.1 134.6
Provident Financi . .1147.0 -3.0 1167.0 915.0
Rathbone Brothers.1316.0 41.0 1316.0 977.0
Record . . . . . . . . . . . . .10.9 0.3 35.5 10.1
RSM Tenon Group . . . .8.7 0.6 40.0 5.6
Schroders . . . . . . . .1615.0 6.0 1906.0 1183.0
Schroders (Non-Vo.1287.0 -7.0 1554.0 970.0
TuIIett Prebon . . . . . .356.0 11.0 428.6 262.3
WaIker Crips Grou . . .45.0 0.0 51.5 40.0
BT Group . . . . . . . . . .215.6 -0.2 219.0 161.0
CabIe & WireIess . . . .32.1 -0.7 50.5 31.3
CabIe & WireIess . . . .33.5 -1.4 63.9 14.2
COLT Group SA . . . .100.0 1.2 154.0 84.1
KCOM Group. . . . . . . .70.0 0.4 84.0 58.5
TaIkTaIk TeIecom . . .143.9 2.0 150.0 118.9
TeIecomPIus. . . . . . .685.0 29.5 802.0 452.0
Booker Group . . . . . . .82.3 2.4 82.5 55.6
Greggs . . . . . . . . . . . .543.5 8.5 558.0 445.0
Morrison (Wm) Sup .299.3 1.8 328.0 268.5
Ocado Group. . . . . . .131.8 12.7 237.0 52.9
Sainsbury (J) . . . . . . .303.0 2.5 362.8 263.5
Tesco . . . . . . . . . . . . .328.5 6.8 420.1 310.5
Associated Britis. . .1196.0 2.0 1228.0 963.5
Cranswick . . . . . . . . .822.0 2.0 842.5 588.5
Dairy Crest Group. . .351.0 -2.6 409.7 311.0
Devro . . . . . . . . . . . . .323.5 -0.4 332.2 232.0
Tate & LyIe. . . . . . . . .710.0 -5.0 720.5 535.5
UniIever . . . . . . . . . .2085.0 -14.0 2189.0 1804.0
Mondi . . . . . . . . . . . . .617.5 2.0 664.0 413.5
Centrica . . . . . . . . . . .314.9 -0.8 333.0 278.8
InternationaI Pow . . .365.0 -0.8 370.0 279.4
NationaI Grid . . . . . . .644.0 -5.5 659.0 552.5
Pennon Group. . . . . .728.0 1.5 737.5 601.5
Severn Trent . . . . . .1592.0 -6.0 1610.0 1375.0
United UtiIities . . . . .615.0 -5.5 637.0 560.0
Cookson Group . . . . .720.0 0.0 725.0 395.8
Rexam . . . . . . . . . . . .426.8 -0.2 429.4 299.8
RPC Group . . . . . . . .383.5 8.5 393.2 234.6
Price Chg High Low
Bovis Homes Group.512.0 1.5 518.5 326.5
Persimmon . . . . . . . .678.5 -3.0 706.5 374.0
Reckitt Benckiser . .3565.0 34.0 3597.0 3020.0
Redrow. . . . . . . . . . . .135.3 4.1 136.8 103.5
TayIor Wimpey . . . . . . .52.2 -0.6 53.4 28.7
Bodycote . . . . . . . . . .422.8 6.8 426.5 225.6
Fenner . . . . . . . . . . . .473.8 4.8 483.7 280.0
IMI . . . . . . . . . . . . . . .1022.0 5.0 1119.0 636.5
MeIrose . . . . . . . . . . .423.7 8.3 423.9 268.0
Northgate. . . . . . . . . .221.0 0.5 346.7 190.9
Rotork . . . . . . . . . . .1985.0 -13.0 2099.0 1501.0
Spirax-Sarco Engi. .2162.0 37.0 2184.0 1649.0
Weir Group . . . . . . .2001.0 24.0 2236.0 1375.0
Evraz . . . . . . . . . . . . .410.6 0.6 460.5 315.0
Ferrexpo. . . . . . . . . . .338.4 -2.2 499.0 238.7
TaIvivaara Mining . . .267.5 -5.0 589.0 195.2
BBAAviation . . . . . . .217.2 1.0 223.4 156.0
Stobart Group Ltd. . .130.0 -6.5 152.8 112.0
AdmiraI Group. . . . .1207.0 4.0 1754.0 787.0
AmIin . . . . . . . . . . . . .349.9 -0.7 427.0 270.6
BeazIey. . . . . . . . . . . .139.9 0.6 151.8 109.6
Informa. . . . . . . . . . . .443.6 1.6 446.0 313.9
ITE Group. . . . . . . . . .236.4 -1.0 258.2 157.7
ITV. . . . . . . . . . . . . . . . .89.9 2.3 91.3 51.7
Johnston Press. . . . . . .7.4 0.1 9.0 4.1
MecomGroup . . . . . .164.5 -3.0 310.0 134.5
Moneysupermarket. .127.4 -0.6 130.3 85.5
Pearson . . . . . . . . . .1226.0 16.0 1255.0 1038.0
PerformGroup . . . . .312.0 6.4 324.3 150.0
Reed EIsevier . . . . . .544.5 -2.0 578.0 461.3
Rightmove . . . . . . . .1388.0 9.0 1446.0 933.0
STV Group . . . . . . . . .110.3 -0.8 168.0 76.3
Tarsus Group . . . . . .135.8 -7.3 165.0 119.5
Trinity Mirror . . . . . . . .35.3 -1.8 54.3 35.3
UBM . . . . . . . . . . . . . .616.0 0.0 635.5 416.0
UTV Media . . . . . . . . .143.3 3.3 150.0 92.5
WiImington Group . . .96.8 -2.0 157.0 78.5
WPP . . . . . . . . . . . . . .860.0 23.5 860.3 578.0
YeII Group . . . . . . . . . . .4.0 0.0 11.0 3.4
African Barrick G . . .407.2 -6.1 616.5 393.5
AIIied GoId Minin . . .127.2 1.6 263.3 34.4
AngIo American . . .2618.0 36.5 3344.0 2138.5
AngIo Pacific Gro . . .338.8 3.3 342.2 237.9
Antofagasta. . . . . . .1229.0 15.0 1491.0 900.5
Aquarius PIatinum . .161.2 6.4 370.0 130.9
BHP BiIIiton. . . . . . .2035.0 11.0 2631.5 1667.0
CatIin Group Ltd. . . .423.3 1.4 449.0 337.0
Hiscox Ltd. . . . . . . . . .413.6 0.1 424.7 340.5
Jardine LIoyd Tho. . .700.5 13.5 764.5 576.0
Lancashire HoIdin . . .759.0 0.0 790.5 568.5
RSA Insurance Gro. .115.4 1.3 139.8 99.6
Aviva. . . . . . . . . . . . . .379.2 4.3 452.7 275.3
LegaI & GeneraI G . . .135.0 0.4 136.0 89.8
OId MutuaI . . . . . . . . .163.2 0.4 164.9 98.1
Phoenix Group HoI . .573.0 2.5 688.0 451.1
PrudentiaI . . . . . . . . .791.5 11.5 797.0 509.0
ResoIution Ltd. . . . . .278.8 -5.2 316.1 229.5
St James's PIace. . . .370.5 16.3 376.0 294.0
Standard Life. . . . . . .250.7 2.8 252.9 172.0
4Imprint Group . . . . .280.0 0.0 295.0 200.0
Aegis Group . . . . . . .185.8 6.3 187.3 115.7
BIoomsbury PubIis . .111.0 -4.3 138.0 91.3
British Sky Broad . . .691.0 -2.5 850.0 618.5
Centaur Media. . . . . . .40.8 0.5 57.5 32.5
Chime Communicati.220.0 -5.9 298.5 163.0
Creston . . . . . . . . . . . .62.5 0.3 121.0 47.0
DaiIy MaiI and Ge . . .447.0 4.8 516.0 343.4
Euromoney Institu . .809.5 25.5 809.5 522.5
Future. . . . . . . . . . . . . .12.5 0.0 26.5 8.3
Haynes PubIishing . .218.0 0.0 257.0 192.0
Huntsworth . . . . . . . . .48.0 -0.5 76.3 32.3
Bumi . . . . . . . . . . . . . .769.0 -0.9 793.5 756.0
Centamin (DI) . . . . . . . .80.0 0.5 154.2 77.0
Eurasian NaturaI . . .684.0 6.5 973.5 522.0
FresniIIo. . . . . . . . . .1797.0 17.0 2150.0 1302.0
GemDiamonds Ltd. .252.0 4.4 291.0 179.8
GIencore Internat . . .418.3 6.1 531.1 348.0
HochschiId Mining . .488.2 8.9 657.0 365.9
Kazakhmys . . . . . . . .960.0 -1.5 1493.0 730.0
Kenmare Resources. .50.0 -1.5 61.5 31.0
Lonmin. . . . . . . . . . .1107.0 19.0 1760.0 941.0
New WorId Resourc .446.9 -12.0 1060.0 409.4
PetropavIovsk . . . . . .636.5 6.5 1073.0 543.5
PoIymetaI Interna . . .961.5 -33.5 1175.0 877.0
RandgoId Resource 6490.0-160.0 7565.0 4490.0
Rio Tinto . . . . . . . . .3578.5 31.0 4595.0 2712.5
Vedanta Resources 1417.0 5.0 2518.0 928.0
Xstrata . . . . . . . . . . .1167.0 20.5 1550.0 764.0
Inmarsat . . . . . . . . . . .473.8 18.9 628.5 389.3
Vodafone Group . . . .166.4 -0.5 182.7 155.1
Genesis Emerging . .516.0 -2.0 548.5 424.0
Afren. . . . . . . . . . . . . .132.0 1.1 171.2 73.6
BG Group. . . . . . . . .1547.0 20.0 1564.5 1144.0
BP. . . . . . . . . . . . . . . .490.2 -2.6 504.6 363.2
Cairn Energy . . . . . . .333.1 1.7 531.8 291.9
EnQuest . . . . . . . . . . .127.2 0.1 158.5 85.7
Essar Energy . . . . . .124.9 11.3 489.8 101.6
ExiIIon Energy. . . . . .218.0 -2.1 469.7 184.2
Heritage OiI . . . . . . . .163.3 2.8 318.8 158.0
Ophir Energy. . . . . . .437.3 23.3 439.0 184.5
Premier OiI. . . . . . . . .419.4 -2.8 520.5 310.0
RoyaI Dutch SheII . .2257.5 -6.5 2402.0 1883.5
RoyaI Dutch SheII . .2285.0 -15.0 2489.0 1890.5
SaIamander Energy .233.5 1.8 317.6 182.3
Soco Internationa . . .331.1 -5.0 400.0 278.0
TuIIow OiI . . . . . . . . .1528.0 57.0 1601.0 945.5
Amec . . . . . . . . . . . .1165.0 2.0 1207.0 740.5
Hunting . . . . . . . . . . .968.0 38.0 977.0 530.0
Kentz Corporation . .474.5 0.3 508.0 347.0
LampreII . . . . . . . . . . .340.3 6.0 395.2 220.7
Petrofac Ltd. . . . . . .1714.0 4.0 1717.4 1108.0
Wood Group (John) .747.5 16.5 763.5 469.9
Burberry Group. . . .1555.0 1.0 1600.0 1092.0
PZ Cussons. . . . . . . .320.0 3.7 387.9 285.0
Supergroup . . . . . . . .627.5 27.5 1600.0 435.2
AstraZeneca . . . . . .2835.0 -11.5 3194.0 2543.5
BTG . . . . . . . . . . . . . .348.6 -4.1 365.0 210.3
Genus. . . . . . . . . . . .1308.0 -2.0 1368.0 853.5
GIaxoSmithKIine. . .1423.5 -7.5 1497.0 1142.0
Hikma Pharmaceuti .729.5 -11.0 869.0 555.5
Shire PIc. . . . . . . . . .2177.0 19.0 2300.0 1784.0
CapitaI & Countie . . .195.4 3.3 203.7 154.5
Daejan HoIdings . . .2958.0 57.0 3030.0 2282.0
F&C CommerciaI Pr .100.9 0.1 108.0 92.6
Grainger . . . . . . . . . . .113.0 0.4 133.2 77.3
London & Stamford .112.0 -1.7 140.0 103.9
SaviIIs. . . . . . . . . . . . .385.0 0.0 427.1 256.2
UK CommerciaI Pro . .70.9 0.6 85.5 65.1
Unite Group. . . . . . . .210.0 -1.5 224.1 152.9
Big YeIIow Group . . .324.8 0.5 344.4 218.0
British Land Co. . . . .513.0 11.0 629.5 444.0
CapitaI Shopping . . .352.3 1.7 408.6 288.7
Derwent London . . .1821.0 -3.0 1880.0 1400.0
Great PortIand Es . . .371.1 2.9 445.0 312.9
Hammerson. . . . . . . .425.0 4.2 490.9 345.2
Hansteen HoIdings. . .76.5 0.6 89.5 68.0
Land Securities G. . .743.0 13.0 885.0 612.0
SEGRO. . . . . . . . . . . .259.2 5.2 331.3 195.0
Shaftesbury. . . . . . . .520.0 4.5 539.0 441.2
Aveva Group . . . . . .1681.0 18.0 1799.0 1298.0
Computacenter . . . . .461.9 18.9 490.0 324.7
Fidessa Group. . . . .1674.0 38.0 2109.0 1444.0
Invensys. . . . . . . . . . .209.8 6.1 357.3 180.9
Logica . . . . . . . . . . . .103.5 1.4 144.8 59.0
Micro Focus Inter . . .455.1 -6.3 471.2 242.9
Misys . . . . . . . . . . . . .329.5 7.0 420.2 214.9
Sage Group . . . . . . . .299.3 -0.7 312.4 231.7
SDL. . . . . . . . . . . . . . .716.0 -3.0 756.0 586.0
TeIecity Group. . . . . .721.5 9.0 726.0 450.5
Aggreko . . . . . . . . . .2310.0 -6.0 2342.0 1481.8
Ashtead Group . . . . .270.8 7.4 272.2 99.4
Atkins (WS) . . . . . . . .799.0 4.0 820.0 490.2
Babcock Internati . . .746.5 -11.0 764.5 562.5
Berendsen . . . . . . . . .534.0 -5.5 568.0 402.7
BunzI . . . . . . . . . . . .1002.0 4.0 1008.0 676.5
Cape . . . . . . . . . . . . . .470.0 -2.6 591.5 295.0
Capita. . . . . . . . . . . . .753.0 4.5 767.0 611.5
CariIIion . . . . . . . . . . .309.3 2.3 403.2 281.0
De La Rue . . . . . . . . .910.5 -24.5 1001.0 730.0
DipIoma . . . . . . . . . . .427.9 7.9 427.9 284.0
EIectrocomponents .263.0 1.4 294.9 182.2
Experian. . . . . . . . . . .983.0 6.5 990.0 665.0
FiItrona PLC . . . . . . . .465.7 -1.5 469.8 293.0
G4S. . . . . . . . . . . . . . .276.3 -0.8 292.1 219.9
Hays . . . . . . . . . . . . . . .91.5 2.1 119.6 58.9
Homeserve . . . . . . . .254.9 12.2 532.0 214.7
Howden Joinery Gr. .130.4 2.1 131.5 93.1
Interserve. . . . . . . . . .291.0 0.7 341.3 252.8
Intertek Group. . . . .2521.0 1.0 2541.0 1744.0
MichaeI Page Inte . . .496.0 3.4 567.0 323.0
Mitie Group . . . . . . . .286.0 -1.2 288.5 196.1
PayPoint. . . . . . . . . . .610.0 10.5 610.0 395.0
Premier FarneII . . . . .218.0 -2.9 301.0 144.5
Regus . . . . . . . . . . . . .115.2 -1.3 119.0 64.0
RentokiI InitiaI . . . . . . .85.5 2.1 100.9 58.2
RPS Group. . . . . . . . .243.8 9.9 253.0 156.6
Serco Group . . . . . . .544.5 2.5 597.5 458.0
Shanks Group. . . . . .102.2 0.6 130.9 90.8
SIG . . . . . . . . . . . . . . .123.2 3.0 153.5 77.0
Travis Perkins . . . . .1112.0 25.0 1115.0 715.0
WoIseIey . . . . . . . . .2526.0 -3.0 2572.0 1404.0
ARM HoIdings . . . . . .576.5 3.5 645.0 464.0
CSR . . . . . . . . . . . . . .258.0 4.0 391.4 154.1
Imagination Techn . .701.0 61.5 706.0 296.9
Spirent Communica .160.3 4.3 160.4 105.8
British American . .3234.5 -7.5 3255.0 2327.0
ImperiaI Tobacco . .2539.0 7.0 2577.0 1880.0
Betfair Group. . . . . . .901.0 1.0 1030.0 567.0
Bwin.party Digita . . .152.8 -0.2 204.0 100.6
CarnivaI . . . . . . . . . .2048.0 -5.0 2642.0 1742.0
Compass Group . . . .668.0 7.5 668.2 512.5
Domino's Pizza UK. .455.0 4.0 526.0 377.0
easyJet. . . . . . . . . . . .450.3 0.3 478.4 302.5
FirstGroup . . . . . . . . .292.9 2.8 370.2 282.5
Go-Ahead Group. . .1319.0 19.0 1598.0 1190.0
Greene King . . . . . . .517.5 5.0 525.0 410.0
InterContinentaI . . .1477.0 7.0 1497.0 955.0
InternationaI Con . . .175.2 0.1 258.7 132.0
JD Wetherspoon. . . .420.4 -4.6 468.3 380.5
Ladbrokes . . . . . . . . .156.1 -0.8 161.8 114.0
Marston's. . . . . . . . . . .99.6 -0.5 112.0 84.6
MiIIennium& Copt . .513.0 7.0 540.0 371.2
MitcheIIs & ButIe. . . .280.9 4.2 336.8 215.6
NationaI Express . . .251.6 3.6 270.2 201.6
Rank Group . . . . . . . .129.8 -1.7 153.7 109.5
Restaurant Group. . .300.6 0.6 335.0 254.9
Spirit Pub Compan . . .56.8 -4.3 61.0 35.3
Stagecoach Group . .267.3 1.1 287.4 203.5
TUI TraveI. . . . . . . . . .190.5 -2.1 250.0 136.7
Whitbread . . . . . . . .1714.0 4.0 1737.0 1409.0
WiIIiamHiII. . . . . . . . .253.2 4.9 253.3 176.8
Abcam . . . . . . . . . . . .341.8 5.0 460.0 320.0
Advanced MedicaI . . .83.0 1.5 96.0 64.8
AIbemarIe & Bond . .357.5 5.5 400.1 281.0
Amerisur Resource . .27.5 0.5 29.0 9.5
Andor TechnoIogy . .520.5 -3.5 685.0 387.1
ArchipeIago Resou. . .65.0 0.0 79.0 55.5
ASOS . . . . . . . . . . . .1740.0 45.0 2468.0 1142.0
AureIian OiI & Ga . . . .19.3 -0.3 77.0 16.0
Avanti Communicat .248.5 7.3 499.8 238.3
BIinkx . . . . . . . . . . . . . .73.8 1.3 158.0 50.5
Borders & Souther . . .71.0 3.3 80.5 43.5
BowLeven . . . . . . . . . .95.5 3.3 382.3 62.0
Brooks MacdonaId 1315.0 -12.5 1372.5 940.0
CIuff GoId. . . . . . . . . . .90.0 -1.5 119.0 66.5
Cove Energy . . . . . . .212.5 0.3 242.0 61.0
Daisy Group . . . . . . .108.5 1.5 127.0 88.6
EMIS Group . . . . . . . .497.5 23.0 580.0 397.5
Faroe PetroIeum. . . .158.3 0.3 183.3 130.0
GuIfsands PetroIe. . .148.0 2.8 329.3 142.5
GWPharmaceuticaI . .90.0 -2.8 130.0 78.5
H&T Group. . . . . . . . .302.5 -10.3 395.0 285.0
Hargreaves Servic .1220.0 -7.0 1258.0 855.0
HeaIthcare Locums . . . .2.0 -0.3 2.1 1.9
Immunodiagnostic . .345.0 7.0 1218.0 288.8
ImpeIIamGroup . . . .355.0 0.0 387.5 225.0
Iomart Group. . . . . . .138.5 3.0 151.0 85.5
James HaIstead. . . . .505.0 0.0 516.4 410.3
London Mining . . . . .277.5 -5.0 436.5 257.5
Lupus CapitaI . . . . . .128.8 1.8 150.0 86.0
M. P. Evans Group . .462.5 2.5 475.0 371.0
Majestic Wine . . . . . .427.8 5.8 510.0 315.0
May Gurney Integr . .282.3 -1.8 302.0 236.0
Monitise . . . . . . . . . . . .36.5 -0.3 40.0 20.5
MuIberry Group. . . .1951.5 -23.5 1995.0 1290.0
Nanoco Group. . . . . . .74.5 0.5 93.3 38.0
NauticaI PetroIeu . . .336.8 2.3 444.3 223.5
NichoIs. . . . . . . . . . . .644.0 -1.0 650.0 430.0
Numis Corporation. . .93.0 -1.0 119.6 72.0
Pan African Resou . . .17.0 0.5 18.3 9.5
Patagonia GoId . . . . . .38.0 0.0 70.0 36.0
Prezzo . . . . . . . . . . . . .67.5 0.1 71.5 53.5
Pursuit Dynamics . . . .83.8 -3.3 392.0 67.0
Rockhopper ExpIor .345.0 -11.3 393.5 141.0
RWS HoIdings. . . . . .560.0 13.0 560.0 370.0
Secure Trust Bank .1070.0 0.0 1100.0 755.0
Songbird Estates . . .115.0 2.5 160.3 103.0
VaIiant PetroIeum . . .522.0 -7.5 628.5 400.0
Young & Co's Brew. .667.5 0.0 712.0 565.0
OcadoGroup.......131.8 10.7
EssarEnergy ......124.9 10.0
ImaginationTechno .701.0 9.6
DixonsRetaiI .......17.0 6.5
RoyaIBankofScot ...28.1 6.3
YuIeCatto&Co.....251.0 6.1
OphirEnergy.......437.3 5.6
Homeserve ........254.9 5.0
ICAP..............431.5 4.7
StJames'sPIace....370.5 4.6
SpiritPubCompany ..56.8 -7.0
StobartGroupLtd. ..130.0 -4.8
CabIe&WireIessW ..33.5 -4.1
PoIymetaIInternat...961.5 -3.4
ImpaxEnvironmenta .99.5 -3.2
BHGIobaILtd.USD ..11.6 -2.9
KenmareResources..50.0 -2.9
Britvic.............376.1 -2.8
DeLaRue .........910.5 -2.6
NewWorIdResource 446.9 -2.6
Risers FaIIers
MAINCHANGESUK350
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
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FIXED LINE TELECOMS
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FOOD PRODUCERS
FORESTRY & PAPER
GAS,WATER & MULTIUTILITIES
GENERAL RETAILERS
HEALTH CARE EQUIPMENT& S.
HHOLD GDS & HOME CONSTR.
INDUSTRIALENGINEERING
INDUSTRIALTRANSPORTATION
MEDIA
LIFE INSURANCE
PERSONAL GOODS
PHARMACEUTICALS & BIOTECH
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OIL & GAS PRODUCERS
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MINING
NONEQUITY INVESTM.COMM.
Tsy 5.250 12 . . . .101.04 -0.04 105.3 101.0
Tsy 9.000 12 . . . .103.34 0.00 111.0 102.4
Tsy 2.500 13 . . . .283.47 -0.03 287.7 282.1
Tsy 4.500 13 . . . .103.93 -0.03 106.4 103.8
Tsy 8.000 13. . . . .111.50 -0.05 116.8 111.4
Tsy 5.000 14. . . . .111.07 -0.08 112.9 109.3
Tsy 8.000 15 . . . .126.49 -0.15 129.2 123.8
Tsy 4.750 15. . . . .113.71 -0.14 115.4 109.1
Tsy 4.000 16. . . . .112.86 -0.19 114.7 105.6
Tsy 2.500 16 . . . .342.48 -0.16 360.9 318.0
Tsy 12.000 17 . . . .119.25 0.00 128.4 119.1
Tsy 1.250 17. . . . .114.61 -0.27 116.6 108.4
Tsy 8.750 17 . . . .138.69 -0.34 141.9 133.3
Tsy 5.000 18. . . . .119.93 -0.36 122.5 110.6
Tsy 4.500 19. . . . .117.94 -0.46 120.7 106.5
Tsy 3.750 19. . . . .112.79 -0.48 115.6 100.7
Tsy 2.500 20 . . . .359.57 -0.38 367.1 322.1
Tsy 4.750 20 . . . .120.06 -0.50 123.5 107.7
Tsy 8.000 21 . . . .147.93 -0.53 153.4 134.8
Tsy 1.875 22 . . . .124.17 -0.48 129.1 113.3
Tsy 4.000 22. . . . .113.71 -0.61 118.2 100.0
Tsy 2.500 24 . . . .320.58 -0.56 360.5 282.2
Tsy 5.000 25 . . . .124.17 -0.74 130.6 108.5
Tsy 1.250 27 . . . .120.00 -0.55 127.0 106.6
Tsy 4.250 27. . . . .115.17 -0.83 122.7 99.1
Tsy 6.000 28 . . . .138.99 -0.83 148.0 120.7
Tsy 4.125 30 . . . .305.10 -0.55 322.8 268.3
Tsy 4.750 30 . . . .121.57 -0.76 130.5 104.3
Tsy 4.250 32. . . . .114.07 -0.80 123.1 97.5
Tsy 4.250 36. . . . .113.77 -0.87 123.9 96.8
Tsy 4.750 38 . . . .122.90 -0.89 134.2 105.0
Tsy 4.500 42. . . . .119.14 -0.92 130.8 101.3
% %
26
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Flexible pension arrangements can be
a good way to take control but move
fast before the Budget, says Tom Welsh
Savour a Sipp,
but fit it with
your appetite
T
HE popularity of self-invested
personal pensions (Sipps) has
risen impressively in recent
years. They look like the per-
fect way to save for retirement flex-
ible, good value for money, and easy
to access and control -- and they fit
comfortably with the growing view
that we must engage with our pen-
sion and take responsibility for our
future.
But how should they be used?
What should be avoided? If youre
considering opening a Sipp, which
product should you choose?
BURDENS OF RESPONSIBILITY
Andrew Roberts, chairman of the
Association of Member-Directed
Pension Schemes, emphasises the
need to ensure youre interested in
a Sipp and its particular benefits at
all. If dont want to manage your
pension, you dont need a Sipp.
He points to concerns from the
FSA that some people are pushed
into Sipps when its not necessarily
in their best interest. Other schemes
are cheaper and, if you dont have
the time or want the responsibility
of making direct investment deci-
sions, these cheaper products make
better sense. Crucially, if you decide
to manage your pension, ensure
your interest is long-term and wont
disappear after a few months.
UNDERSTAND YOUR INVESTMENTS
Depending on provider and product,
Sipps let you plough your pension
savings into a huge variety of invest-
ments, from equities to commercial
property. But with greater choice
comes greater risk. John Moret, prin-
cipal at MoretoSIPPS, warns against
investing in overseas property or in
Unregulated Collective
Investments. These need specialist
knowledge.
Roberts agrees. Just because flexi-
bility allows, it doesnt mean it
should be done. Unless youre a
sophisticated investor, or have inde-
pendent financial advice, unusual
or esoteric investments should be
avoided. He also cautions against
promotional offers that appear too
good to be true. Politely decline
cash inducements by Sipps providers
to invest in promoted investments.
These arent always bona fide funds.
GREAT TAX BENEFIT FOR NOW
Pensions currently enjoy huge tax
advantages, for everybody but espe-
cially for 40p and 50p taxpayers, for
contributions of up to 50,000 a
year, which benefit from tax relief.
Someone on 200,000 could increase
their pension pot by 50,000 at a cost
to themselves of just 25,000 in post-
tax income. But there are fears that
tax relief will be reduced, abolished
or cut to a maximum of 30-40,000
per year. No wonder there has been
a rush of cash in recent days.
Remember: the Budget is on
Wednesday.
The lifetime tax allowance is also
dropping to 1.5m from 6 April. The
tax charges for crossing this limit
can be penal. One way to avoid
breaching limits is to contribute in a
regular dribble rather than in occa-
sional lump sums, and then top up
at the end of the tax year. This has
the added advantage of making
Sipp saving and management a
habit rather than a whim.
CONSOLIDATED BENEFITS
Danny Cox, head of advice at
Hargreaves Lansdown, the biggest
direct consumer provider of Sipps,
says the product is useful for consol-
idating a hotch potch of retire-
ment arrangements into a single,
simple manageable scheme. You can
often transfer other pensions into a
Sipp within a few months. But do
your research before taking this
step. Many pensions charge exit fees
which can eat into the value of your
investment. Also, there arent
always long-term advantages to con-
solidation. Despite greater control,
you might lose the particular bene-
fits of existing arrangements. Final
salary schemes or guaranteed
income annuities, for example, give
beneficiaries a confirmed, relatively
safe payment over a defined period
of time. By moving these invest-
ments into a Sipp, you are taking
upon yourself the risk of market
fluctuations.
WHICH SIPP?
As expected from a flexible product,
Sipps can suit absolutely any type
of investor as you choose the func-
tionality you want. This, says Cox, is
why its a massively increasing
market. Recent downward price
pressures on costs has made it
viable for an increasing number of
savers.
Different Sipps have different
advantages. Some are not suitable
for just anyone and there are always
costs involved. Although Hargreaves
Lansdown offers a low-cost option
with no annual fee, investors face
some limits as to where they can
put money. The most flexible pack-
age, with the greatest control and
the broadest selection of investment
options, charges a 500 annual fee.
Cox says its really only for someone
with at least 250,000 to invest.
This abundance of Sipps, there-
fore, means you should tailor your
choice to the amount of control and
flexibility you can realistically man-
age, as well as to the size of your
portfolio.
There are plenty of Sipps on offer, so choose wisely Picture: GETTY
Wealth Management| Sipps
When you need to spend it should be central to your
decision on how much risk to take, writes Philip Salter
Diversification can limit
I needed to diversify
my income portfolio
internationally...

Henderson International Income Trust

Henderson Global Investors is the name under which Henderson Global Investors Limited (reg. no. 906355), Henderson Fund Management Limited
(reg. no. 2607112), Henderson Investment Funds Limited (reg. no. 2678531), Henderson Investment Management Limited (reg. no. 1795354),
Henderson Alternative Investment Advisor Limited (reg. no. 962757), Henderson Equity Partners Limited (reg. no.2606646), (each incorporated and
registered in England and Wales with registered office at 201 Bishopsgate, London EC2M 3AE), Gartmore Investment Limited (reg. no. 1508030),
Gartmore Fund Managers Limited (reg. no. 1137353), (each incorporated and registered in England and Wales with registered office 201 Bishopsgate,
London, EC2M 3AE) are authorised and regulated by the Financial Services Authority to provide investment products and services.
www.henderson.com
Henderson International Income Trust looks
outside the UK for companies providing a high
and rising level of dividends, so if youre
concerned your portfolio relies too heavily on
UK companies for income, this is an investment
worth considering.
The Trust offers investors access to a focused
portfolio of around 60 stocks from an
internationally diverse range of companies based
outside the UK. Experienced specialist regional
fund managers, with proven income expertise, pick
best ideas stocks from across the world.
The value of investments and the income from
them may go down as well as up and you may not
get back your original investment. Most of the
investments in this portfolio are not made in
Sterling, so exchange rates could affect the value
and income from your investment. This portfolio
may hold only 40-60 stocks. If one of these
investments declines in value, this can reduce
the portfolio's value more than if it held a larger
number of investments.
The facts youll want to know
Investment trusts, managed by Henderson
...Henderson helped me
pin point growing income
levels outside the UK.

Invests exclusively in companies from
outside the UK unique in the market.
Targets a yield of 4% and yield growth of
5-10% per annum.
Provides diversification for investors
reliant on UK companies for their income.
0800 915 0508
Or visit www.hendersoninternationalincometrust.com
Call for your FREE Fund
Managers information pack
@hendersontrusts
CAMHINT - 01
I
TS A truism of investment
advice that an investor should be
diversified. And for good reason
only a gambler would put all his
money in a single equity in the hope
of striking it rich. Yet it shouldnt be
forgotten that diversification comes
at a cost one that should be weighed
principally against time horizons.
VARIETY IS THE SPICE
Some diversification is a must. Rob
Burgeman of Brewin Dolphin readily
admits that if he had been forced a
stocks in the market either all went
up or down in unison dependent on
the latest piece of macroeconomic
news or statement from political lead-
ers.
Although equities and other assets
took a tumble in 2010, not everything
fell as far, as fast or for as long. Bonds
bounced back, proving the case for a
diversified portfolio across asset class-
es.
Attempting to avoid correlated
assets through diversification has its
limits. Burgeman explains that in try-
ing to minimise the peaks and
troughs (the risk) investors can be left
on the sidelines in a bull market. He
also notes the danger of holding
inversely correlated assets: there is
simply no point as gains cancel out
losses.
Avoiding all risk reduces the scope
for rewards. Burgeman uses the
example of hedge funds many of
which have failed to live up to their
claim of delivering absolute returns
its no good being uncorrelated if you
arent providing the returns.
THERE IS AN ALTERNATIVE
Beyond the classic 50 per cent equi-
ties, 40 per bonds and 10 per cent cash
ratio, the finance industry is coming
up with increasingly imaginative
ways to try to minimise the risk of a
rare event destroying an investors
wealth.
This search for the Holy Grail will
never end. Hedge funds, commodi-
ties, futures contracts, derivatives, pri-
vate equity, real estate or collectibles
are being used to attempt to ride the
wave. For example, Doric Nimrod Air
One, a closed-ended company which
listed on the LSEs specialist fund mar-
ket, purchased one Airbus A380-861
aircraft and leased it to Emirates
Airlines. Its investment objective is to
obtain income returns and a capital
return for its shareholders. Burgeman
explains that so far investors havent
done too badly, up from 100p in
couple of years ago to pick a single
stock for an investor, he would have
likely gone for BP. He says a few years
before that it would have been ration-
al to pick Lloyds TSB. Picking a variety
of equities exposed to different move-
ments in the economy is essential
(either directly or through an index),
but you need to go beyond stock diver-
sification to asset class diversification.
However, Andrew Humphries who
is executive director of asset manage-
ment at St Jamess Place notes that
correlations across asset classes have
been increasing over the last few
years: If one looked at 2011, the equi-
ty markets were dominated by the
risk on risk off trade, when most
To make an omelette
Wealth Management | Personal Finance
28
December 2010 to 117p and a half,
providing a 7.6 per cent yield.
Although you wouldnt want all your
wealth invested in this flight of fancy,
he sees no reason why investors
shouldnt have one per cent. Coming
back down to ground, Burgeman also
likes the 3i Infrastructure fund and
the HSBC Infrastructure fund both
yielding 5 per cent.
TIME IS MONEY
Gold is worthy of consideration as an
alternative asset, not least because its
behaviour exemplifies a vital variable
when thinking about how to diversi-
fy: time. Throughout history the yel-
low metal has proved a fantastic store
of value. Ignore the nonsense about it
being a 6,000-year bubble while
paper-backed money has collapsed
time and again, physical gold has
held firm. Yet it has had its ups and
downs. If youre a gold bug and retire
on the down, you might be strug-
gling.
Indian families have the right time
horizon: golds volatility means that it
is something to pass on physically
through the generations used only
in cases of emergency.
Gold, or any asset for that matter,
only gets you so far; but equities are
likely the best bet for those with time
on their hands who need to realise
their investments in their lifetime.
But its all about timing. James
Butterfill, an equity strategist at
Coutts, says for the long-term
investor, it is essential to avoid over-
priced assets while diversification is
essential it must not be implemented
without consideration of valuations.
He explains that given the scarcity of
assets with a yield above inflation, the
hunt for yield requires a step up the
risk scale. Therefore, Coutts is over-
weight high yielding equities, export-
ing companies to emerging markets
that can outgrow their domestic
peers and companies in monopolistic
positions.
In contrast, those nearing retire-
ment with a shorter time horizon are
forced in the main to hold less excit-
ing assets: government gilts and cor-
porate bonds.
rewards
Multi-asset funds
provide too little
reward for risk
M
ULTI-ASSET funds are sim-
ply funds that have the
ability to invest in
more than one
asset class. The logic behind
picking a multi-asset fund
is obvious: you get the
benefit of a managers
expertise and watchful
eye overseeing your
asset allocation. And
although they arent
the cheapest invest-
ments in the
world, the
power -
ful fund
pr ov i de r s
are able to offer a
decent total expense
ratio by combining
access to multiple asset
classes in a single fund
unit. However, you
should look before you
leap. Some are multi-
manager funds which
may be fettered with the
fund houses own offerings
And despite the buzz of activity
surrounding them, research
from InvestorBee suggests that
by selecting a multi-asset fund
many investors are not receiving a
fair reward for the risk they are taking
on.
Driven by data from DCisions,
InvestorBee is able to analyse more
than 1m real consumer portfolios,
defining five distinct levels of risk
with corresponding performance
benchmarks based on the average out-
comes of real investors. From this,
InvestorBee is able to quantify the
vital dimension of risk when measur-
ing a funds relative performance,
helping investors better understand
the risk theyre taking and whether
the fund is delivering you value for
that level of risk.
InvestorBee allows investors to see
whether funds have destroyed value
including the impact of fees by com-
paring its return with the average
return achieved by real investors tak-
ing the same level of risk. This arms
100%
100%
20%
20%
60%
60%
0%
ANALYSIS l Multi-asset funds consistently beating benchmark since 2009
63%
37%
56%
96%
44%
4%
After 1 year
After 2 years
Beat Benchmark
Under Benchmark
After 3 years Source: InvestorBee 2012
TOP AND BOTTOM MULTI-ASSET FUNDS BY RISK GROUP
BEST AND WORST MANAGEMENT GROUP OF MULTI-MANAGER FUNDS
Top Performing Bottom Performing
Medium low risk Newton Investment Management Neptune Investment Management
Medium risk Invesco Perpetual Fund Managers Sarasin Investment Funds
Medium high risk Henderson Global Investors Thames River Multi Capital
High risk Neptune Investment Management Scottish Widows Investment Partnership
Risk Group Ranking Fund Gain/loss versus benchmark
Medium low risk Best Henderson Cirilium Balanced Fund 13.10
Worst Barmac AM - The Castleton Growth Fund -36.69
Medium risk Best CF Miton Select Assets Fund 31.56
Worst Threadneedle Target Return Fund -40.48
Medium high risk Best Unicorn Mastertrust 39.80
Worst Navigatio Euro Conservative Fund -15.30
High risk Best MFM CFS Balanced Opportunities Fund 26.22
Worst Scottish Widows Investment Partnership Capital Trust -10.37
Wealth Management | Personal Finance
investors with the facts to make sure
that a funds track record backs up its
claims. Its interesting to see how
many multi-asset funds underper-
form by a such a large margin on a
risk adjusted basis outsourcing asset
allocation is a very tempting offer but
its hard to know who to trust.
However, not all multi-asset funds
should be tarred with the same brush
(see tables above, right); its just that
investors shouldnt put blind faith in
their multi-asset managers ability to
deliver the right blend of assets.
InvestorBees founder Graham
Mannion observes that multi-asset
funds make a lot of sense, however
investors should remember that
selecting a fund is a tricky business
you have less than a one-in-two chance
of picking one that will match or beat
its InvestorBee benchmark.
Managers with average fund size (AUM) of less than 50m have been excluded.
Source: InvestorBee 2012
Dont get
stung
Boutique partying in Antalya
Lifestyle| Travel
30
P
ROMISING legendary DJs,
the SunSplash boutique music
festival at the beach resort of
Hillside Su in Turkey has
earned itself a reputation. Now in its
fourth year, each May it attracts a
loyal following of British and
Turkish devotees, wanting a hassle-
free, high-quality, small, friendly and
laid-back week-long party in a single
beach resort no cabs, no extortion-
ate club entrance fees, no camping
horrors and definitely no wellies.
With only 400 tickets, the DJs
themselves feel its the kind of place
they can kick-back and relax, listen-
ing to their superstar brethren play
around the pool, at the beach bar
and in the resorts two nightclubs
I said hi to Norman Jay yesterday,
one forty-something guest told me
last year, and I had breakfast with
Mad Professor.
Joining these two names in the
line-up this year are Gilles Peterson,
Phil Asher, Theo Parrish and Louie
Vega among others, over six days. Its
still an under-the-radar fixture on
the global festival circuit. The same
clubber pleaded with me not to let
on about it: We dont want the
secret to get out, she said. We dont
want it to become too big. Its really
friendly, probably because its a
slightly older crowd. Weve met so
many great people. There is a mix of
ages, everyone just loving the music
and having a good time. Its so cool
here, said Dean, 27, from Fulham,
dancing in the hotels club Voda
with a group of 10 late-twentysome-
things from London. Everyone I met
is amazing, he said with a huge
grin.
When Hillside Su was finished in
2003, the resort was Turkeys first
design hotel. Step through the doors
into the enormous all-white, nine-
storey atrium, the lobby lounge, and
you cant fail to be wowed by its
retro-futurist feel. Overhead, six over-
sized, rotating glitter balls (each six
metres across and weighing 450kg)
spill pools of light all around the
pristine decor of the lobby and bar,
splashes of red neon the only other
colour.
This sets the theme for the whole
resort the Turkish architect and
designer Eren Talu has used a palette
of only three colours throughout
all-white architecture and interiors,
red typography and lighting, and
swathes of midnight black in the
nightclubs. Its a dramatic homage
to Sixties minimalism think 2001:
A Space Odyssey meets A Clockwork
Orange, with a scattering of
Seventies Saturday Night Fever.
In the lobby lounge, spotless mir-
rors clad every pillar, guests sit on
white stools along a 22 metre bar
which serves sushi as well as cock-
tails, while the hotels resident DJ
pumps out a mix that might be fea-
tured on its own compilation CD. As
a party hotel, outside of the festival
dates, DJs and music will lift your
spirits most Friday and Saturday
nights throughout the summer.
SunSplashs tagline is sun, sea
and legendary music. Once you
have your festival wristband on,
everything else is easy simply nip
back to your room after dinner, leave
your euros behind, and use your
room key as a charge card for drinks.
Its like having a party at your own
place; except your place is a spacious
complex of 294 rooms and suites, a
full spa, fitness centre, boutiques, a
salon and Olympic-length outdoor
pool with loungers enough for every-
one and call buttons for service to
the decked poolside and pebbly
beach.
Its a hotel with personality fun
and funky which pulls in the
Hollywood crowd: Charlize Theron,
Kevin Spacey, Sophie Marceau, Micky
Rourke, Marisa Tomei and Shakira
have all stayed here.
As a group of girls, relaxing in the
spa, we chatted about the decor: in
the spotless white bedrooms, the
hotel has not just a maxi bar of
tempting treats but also a whole host
of items that would usually be sold
in a shop, including razors and tam-
pons, displayed like rows of orna-
ments against the white walls. I
wanted to stuff them all in a sack
out of sight, but my friend Emma, a
designer, liked their artistic quali-
ty and thought the whole hotel
theme worked for the holiday vibe.
When choosing your room ask
about the view, as the hotel has bet-
ter and worse outlooks, including
towards a main road. Id recommend
one of the suites I stayed in room
326 and it was quiet and faced out
across the pool to the lush green gar-
dens (yes, green!) and the sea beyond,
with a private balcony on which to
linger over breakfast and feel thor-
oughly spoiled.
SANDA SPA: REVIEW
A cavernous, white (of course) Zen-
like space, the Sanda Spa has red
neon lighting throughout, which
worked especially well in the treat-
ment rooms. As the resort is one of
international cuisine, retro decor,
British DJs and clubbers from home,
its nice to be reminded that you are
in Turkey, and the spa has a modern
Turkish hammam.
I lay on the heated stone slab and
was treated to 45 minutes of being
sluiced down with warm water, gen-
tly scrubbed all over with a mitt
infused with mint, sluiced again
with soft bubbles, and thoroughly
massaged limb by limb. I had my
hair washed, I was dried and then
finally worked on again all over with
lemon-scented oil. Bliss.
Details: SunSplash Antalya, 23 May-3
June 2012 costs from 225 per person for
three nights, including half-board accom-
modation at Hillside Su, use of the spa,
sauna, gym and all special parties, con-
certs and workshops (excluding flights to
Antalya).
Hillside Su is a
perfect base for
enjoying Turkeys
SunSplash festival,
says Laura Ivill
Hillside Sus beach-
front terrace. Below:
the modern facade;
Below left: the
hotels Sanda spa.
STAYING AND PARTYING
31
Dan Panorama: A solid base
which is ideally located between
Neve Tzedek and Jaffa. Its clean,
simple and theres an outdoor pool
(though its closed in winter).
Watch out for the extortionate
wireless internet charge.
Artplus: A luxury boutique hotel
by Atlas Hotels. A concept hotel
in which specially commissioned
artworks line the corridors. If
youre lucky, you may also have a
piece installed in your room. Small
rooms, but perfectly designed.
Clubs:
The Breakfast Club
Radio E.P.G.B
Cafes:
Rothschild 12
La La Land
Restaurants:
Manta Ray
Joz ve Loz
Nana
Dr Shakshuka
A city that knows
just how to seduce
Meanwhile, Jerusalems King David still reigns
O
N the five hour flight from
London to Tel Aviv, serious-look-
ing men in black clothes made
their way to the back of the
aeroplane to pray. The man next to us
asked our opinions about the conflict
as he bought me a coffee. At the air-
port, extensive and lengthy security
checks were imposed.
Im not sure what we were expect-
ing from the city as a result of this
introduction, but the word intense
would have figured; IDF soldiers on
every corner, stifling security meas-
ures, inescapable political discussions.
In fact, TLV (as it is affectionately
known) prides itself on being the
exact opposite, and once youve left
the airport the vibe is laid-back and it
feels extremely safe and welcoming. It
is the perfect destination to catch
some sun most months of the year.
We fell in love with Tel Avivs ener-
gy, elegance and liberality instantly.
Within hours of arriving, we found
ourselves in bistros, bars, boutiques
and galleries so chic, creative, elegant
and in the case of the eateries deli-
cious, any residual doubts dissolved.
To our first-timer eyes, Tel Aviv mixes
the bohemian vibe of Berlin with the
beach culture of Barcelona (the sea is
warm enough to swim in most of the
year). Theres a thriving arts scene and
a sense that things are happening,
both creatively and commercially. It
feels like a city in good health.
Aesthetically, Tel Aviv is a patch-
work of old and new: sleek Bauhaus
architecture lines European-styled
boulevards, while the Arabic city of
Old Jaffa presides majestically on the
hill, and skyscrapers crowd the coast.
Like most first-timers, we found Neve
Tzedek, the oldest part of the Jewish
city, utterly enchanting, with its tiny,
ramshackle streets filled with wonder-
ful smells of Persian, French, Japanese
and other types of cuisines cooked to
perfection. Many Israeli designers of
jewellery, clothes and shoes (those
that can afford the real estate, that is)
have beautiful shops here. Old Jaffa is
also must-see, though the main area
around the clock tower feels slightly
contrived. It retains an Arabic feel,
despite the presence of chain stores
and coffee shops. A trip to some of
the contemporary art galleries
around Mazal Arie Street is certainly
worthwhile. The city also has its fair
share of industrial buildings and
soulless highways, but these are more
than made up for by the presence of
the 12 mile long shore that gives a
feeling of openness. The city plan is
very well thought out, designed to
avoid the mistakes and pitfalls of
older cities that developed more
organically.
Above all: food and nightlife are
fabulous. Seafood is to die for (try rus-
tic-glam Manta Ray on the beach near
the Dolphinarium, famous for its
mezze selection) and its essential
that you go for a houmous at least
once. Humous is taken very seriously,
and tastes unlike anything we get
over here; served warm in a bowl
with olive oil, herbs, creamed tahini
and pillow-like pita on the side with
pickles and onions. In Old Jaffa, dont
miss Dr Shakshuka, an eccentric cave
that serves the signature dish of eggs
poached in tomato sauce baked in a
clay pot with meat or vegetables.
Back in central Tel Aviv, Joz ve Loz
(Yehuda Halevy 51) is hidden down a
back street behind an unassuming
facade and offers a fresh, east-meets-
west menu and interesting wine in a
room that gives boho chic a new
T
HEY say youre either a Tel Aviv or
a Jerusalem person. Jerusalem is
everything Tel Aviv isnt: ancient,
hilly, and, above all, deeply reli-
gious. No doubt about it: Jerusalem is
an utterly different proposition to the
rest of Israel, but even if you like to
lounge about in the sun in your bikini
sipping the countrys Goldstar beer and
dont believe in God, there is an unde-
niable magnetism and beauty about
the Holy City.
There is also, fundamentally, a
grandeur to Jerusalem, its hallowed
sights, its gorgeous dusky stone and of
course, the densely packed, hotly con-
tested history. No landmark is more
grand or more associated with the
citys modern identity than the King
David Hotel, set upon a hill overlooking
the Old City, as integral a part of
Jerusalem as the Knesset (parliament).
Most famously, the King David was
bombed in 1946 by the extreme Zionist
group Irgun as a response to a British
attack on the Jewish Agency the
British mandate had their offices in the
hotel.
Anybody visiting Israel on a state
visit goes to the King David and if
youre a famous pop star you go too;
likewise a model, film star or oligarch.
Its enormous, plush lounge areas,
sprawling and elegant terraces (over-
looking a capacious swimming pool
and tennis courts) have hosted hun-
dreds of world leaders. When we were
there, top level conversations between
Baltic premiers were taking place and
the security detail was impressive in
fact, there are few hotels in the world
with such security and their expertise
is evident in its discretion. At the
entrance there is only a smiling bellboy
and concierge, clad in jaunty suits (or
so it seems).
Stately credentials and security
aside, its a gorgeous hotel. The lobby
needs a bit of modernising, some of the
doorframes, paintwork and wood on
the front desk have seen better times.
But the rooms are resplendent. Mine
opened onto a terrace with the garden
underneath and looking out on the Old
City, with its battlements and hills,
bathed in golden light. At sunrise and
sunset the Jerusalem stone turns the
most beautiful dusky pink and you feel
a glimmer, even if fleetingly, of why
people become so passionately
attached to the city. Inside, there is rich
brocade on the bed and walls and a
dark, elegant sofa and table on which
fruit and dates are laid, along with a
bottle of wine.
The hotel is a behemoth: if youve got
the cash (or youre just very, very impor-
tant), there are penthouses and suites
that boggle the mind. Naturally the
food is good (above all, kosher), though
you would dine here to enjoy the ter-
race and to people watch not, per-
haps, for the cuisine, which can be
bettered elsewhere in the city.
Passover (6-14 April) is a unique time
to visit Israel; Jews from around the
world descend and Jerusalem in partic-
ular will be intense and vibrant. There
are a few new hotels in Jerusalem that
offer something more hip and modern,
but in a city like this, grandeur and his-
tory will never go out of fashion,
whether youre visiting for a Jewish hol-
iday or not.
One of the most important buildings in Israel remains a hotel
of sweeping splendour and decorum, says Zoe Strimpel
Zara Hayes, a first-timer to Israel, found Tel Aviv a cultural treasure trove
The Leading Hotels of the World
(00800 2888 8882) offers stays at King
David Jerusalem from $530 (335) per
room per night based on two people
sharing including breakfast
www.lhw.com/kingdavid. For Passover,
LHOTW offers stays from $700 (441)
per room per night including breakfast.
meaning. Youd also be missing out if
you didnt stay out until sunrise at
one of the citys bars or clubs (we
loved Radio E.P.G.B and The Breakfast
Club, though there are hundreds for
every taste ask around for a recom-
mendation). As a general rule, its
worth poking down back streets and
alleyways as some of the best venues
are tucked away. And when in doubt,
ask a local for a recommendation or
for directions. if youre lost. People are
amazingly friendly (if sometimes
brusque).
On our return from trips to Haifa,
the Dead Sea and Jerusalem (all with-
in two hours drive from TLV), we
stayed at the newly opened ArtPlus
hotel and spent a day at the epic Tel
Aviv Museum of Art and the Eretz
Israel museum. The Israelis know how
to do a museum; Israel has the most
galleries and museums per capita of
any country. I wish wed had time to
do more, but I have a feeling well be
back.
Left: A view from
central Tel Aviv
towards the sea.
Below: Old Jaffa
harbour.
T
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EASTENDERS
BBC1, 8PM
Heather is heartbroken when Shirley
refuses to forgive her, and Ben starts
to panic after Marsden asks to discuss
his statement.
THE LITTLE PARIS KITCHEN:
COOKING WITH RACHEL KHOO
BBC2, 8.30PM
New series in which the pastry chef
displays her passion and flair for the
cuisine of Paris.
RAMSAYS KITCHEN
NIGHTMARES USA CHANNEL 4, 10PM
The chef heads to a floundering soul
food restaurant in New Jersey, but
struggles to get his message across to
its indomitable owner.
BBC1
SKY SPORTS 1
4pmLive Golf 9pmPremier
League Review10pmNetbusters
10.30pmSPL Round-Up 11pm
Soccer AM: The Best Bits 12am
Premier League Review1am
Netbusters 1.30amSPL Round-Up
2amSoccer AM: The Best Bits
3amFIFA Futbol Mundial 3.30am
Watersports World 4.30amMax
Power 5.30am-6amFIFA Futbol
Mundial
SKY SPORTS 2
7pmTest Cricket 9pmEuropean
Tour Golf 10pmPGA Tour Golf
11pmGolfing World 12am
Wonderful World of Golf 1.30am
Snowboarding 2amKings of the
Snow2.30amPGA Tour Classic
3.30amEuropean Tour Golf
4.30am-5.30amPGA Tour Golf
SKY SPORTS 3
7pmMasters Tennis 8.30pmVolvo
Ocean Race 9pmSuper League Full
Time 10pmWWE: Late Night
Bottom Line 11pmWWE: Late
Night Afterburn 12amWWE:
NXT 1am-3.15amLive WWE: Late
Night Raw
BRITISH EUROSPORT
8pmCycling 9pmSeoul Marathon
10pmEurogoals 11pmHorse
Racing Time 11.15pm-12.25am
Cycling
ESPN
7pmGame of the Week 7.30pm
Live Serie A 9.45pmESPN Kicks:
FA Cup 10.15pmPremier League
Review11.15pmESPN Kicks:
Scottish Premier League 11.30pm
Press Pass 2012 12amESPN Game
of the Week 12.30amESPN Kicks:
FA Cup 1amLive NBA Basketball
3.30amESPN Kicks: Scottish
Premier League 3.45amPremier
League Review4.45am-6am
Bundesliga Review Show
SKY LIVING
7pmCriminal Minds 8pmThe Love
Machine 9pmAmericas Next Top
Model: All-Stars 10pmCriminal
Minds 11pmBones 12amCSI:
Crime Scene Investigation 1.50am
Maury 2.40amMedium3.30am
Bones 4.20amNothing to Declare
5.10am-6amJerry Springer
BBC THREE
7pmThe Real Hustle: Celebrity
Chancers 7.30pmWorlds Craziest
Fools 8pmDont Tell the Bride 9pm
The Anti-Social Network. Richard
Bacon tracks down internet bullies.
10pmEastEnders 10.30pmLittle
Britain Abroad 11pmFamily Guy
11.45pmAmerican Dad! 12.30am
Being Human 1.30amThe Anti-
Social Network 2.30amDont Tell
the Bride 3.30amLittle Britain
Abroad 4amThe Real Hustle:
Celebrity Chancers 4.30am-5am
Worlds Craziest Fools
E4
7pmHollyoaks 7.30pmHow I Met
Your Mother 8pmMy Name Is Earl
9pmOne Tree Hill 10pmSkins
11pmRude Tube: Mashed n Mixed
12.05amThe Big Bang Theory 1am
Scrubs 2amHow I Met Your
Mother 2.25amRude Tube:
Mashed n Mixed 3.15amRules of
Engagement 3.35amGreek
4.20amUgly Betty 5am-6am
Switched
HISTORY
7pmAmerican Restoration 7.30pm
Pawn Stars 8pmStorage Wars
9pmPawn Stars 9.30pm
American Restoration 10pm
American Pickers 12amPawn
Stars 12.30amAmerican
Restoration 1amAmerican Pickers
3amOnly in America 4amHow
Britain Was Built 5am-6am
American Pickers
DISCOVERY
7pmBear Grylls: Born Survivor
8pmAuction Kings 9pm
Moonshiners 10pmAmerican Guns
11pmWild Britain with Ray Mears
12amBear Grylls: Born Survivor
1amMoonshiners 2amAmerican
Chopper: Senior Versus Junior
3amWheeler Dealers 3.50am
Mythbusters 4.40amMark
Williams on the Rails 5.30am-6am
Destroyed in Seconds
DISCOVERY HOME &
HEALTH
7pmSupernanny US 8pm17 Kids
and Counting 9pmBritains Fattest
Woman 10pmHospital Sydney
11pmA&E 12amBritains Fattest
Woman 1amHospital Sydney 2am
A&E 3amSupernanny US 4amA
Baby Story 5am-6amBabys Room
SKY1
7pmFuturama 7.30pmThe
Simpsons 8pmGadget Geeks 9pm
Obese: A Year to Save My Life USA
10pmSpartacus: Vengeance
11.15pmDont Stop Me Now
12.15amFringe 1.15amDog
the Bounty Hunter 2.10am
Caribbean Cops 3.05amCustoms
UK 3.30amChange the Day You
Die 4.20amCrash Test Dummies
5.10am-6amHello Goodbye
BBC2 ITV1 CHANNEL4 CHANNEL5
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TVPICK
6pmBBC News 6.30pmBBC
London News 7pmThe One Show
7.30pmBang Goes the Theory: BBC
News 8pmCHOICE EastEnders
8.30pmBritains Crimes of Honour
Panorama 9pmEmpire: The
financial side of the British Empire.
10pmBBC News 10.25pm
Regional News 10.35pmA
Question of Sport 11.05pmOur
Economy: The BBC London Debate
11.45pmThe Graham Norton Show
12.30amWeatherview12.35am
Sign Zone: Rita Simons: My
Daughter, Deafness and Me 1.25am
Sign Zone: Hidden 2.25amSign
Zone: Great British Food Revival
3.25amSign Zone: The Last
Explorers 4.25am-6amBBC News
6pmEggheads
6.30pmBritains First Photo
Album
7pmUniversity Challenge: The
Story So Far
8pmUniversity Challenge
8.30pmCHOICE The Little
Paris Kitchen: Cooking with
Rachel Khoo
9pmThe Tube
10pmWatson & Oliver
10.30pmNewsnight: Weather
11.20pmFILMStarter for 10.
2006.
12.50amBBC News
3.15amThe Super League Show
4am-6amBBC Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmCoronation Street
8pmThe Dales
8.30pmCoronation Street
9pmScott & Bailey
10pmITV News at Ten
10.30pmLondon News
10.35pmThe Agenda
11.05pmMayday Mayday
11.35pmPiers Morgans Life
Stories: Katherine Jenkins
12.25amThe Zone; ITV News
Headlines 2.30amChampions
League Weekly 2.55amITV
Nightscreen 4.35am-5.30amThe
Jeremy Kyle Show
6pmThe Simpsons
6.30pmHollyoaks
7pmChannel 4 News
7.55pm4thought.tv
8pmChina: Triumph and
Turmoil
9pmEmbarrassing Bodies
10pmCHOICE Ramsays
Kitchen Nightmares USA
11pmHomeland
12.10amRandom Acts
12.15amShameless
1.15amMake Bradford British
3.05amAmelia and Michael
3.15amBirth of Britain
4.10amTime Team5.05am-6am
Genius of Britain
6pmHome and Away
6.30pm5 News at 6.30
7pmStansted: The Inside
Story: 5 News Update
8pmUltimate Police
Interceptors: 5 News at 9
9pmFILMExecutive Decision:
Action thriller, starring Kurt
Russell. 1996.
11.35pmFILMDerailed:
Action adventure, starring
Jean-Claude Van Damme and
Laura Elena Harring. 2002.
1.15amSuperCasino 3.55amHouse
Doctor 4.20amWildlife SOS
4.45amWildlife SOS 5.10am
Michaelas Wild Challenge
1 2 3 4 5
6
7 8 9
10 11 12 13
14 15
16 17
18
19 20 21
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26 15
12 21
11 13
17 15
33 3
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12
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10
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10
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44
4
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28
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 Dish of cold
vegetables (5)
3 Gush forth in a sudden
stream or jet (5)
7 Admission (6)
9 Stitches together (4)
10 Aggravate,
worsen (10)
14 Make the sound
of a dove (3)
16 Rule or directive made
and maintained by
an authority (10)
19 As well (4)
20 Largest digit of
the foot (3,3)
22 Multiplication (5)
23 Well turned-out (5)
DOWN
1 Ocean oor (6)
2 Imitate (3)
4 Flour and water
dough (5)
5 Examination (4)
6 Early form of
sextant (9)
8 Go after with the
intent to catch (5)
11 Former French gold
or silver coin (3)
12 Constricting snake (3)
13 Contaminate (5)
15 Inoculate by using
a needle (6)
17 Small plantation
of trees (5)
18 Cobblers stand (4)
21 Sticky tree sap (3)
A
S
H
E
O T
R
U
I
4
4

R I D G E M A R C H
E R Y T R
S H E K E L T S A R
T S A P R O N
Y E S M A N A L E C
L I Y C O
E A T S A T T A I N
L A T E R S F
L I R A D E S I R E
G K E A S
U N D E R L I N K S
8 4 3 2 3 6 1 2
4 3 2 1 9 8 3 1
9 6 7 8 5 9 2 4
6 2 1 8 9 7 9
7 1 6 9 7 8 5 3
6 2 4 8 1
4 6 1 3 2 5 4 2
1 2 1 3 6 1 3
9 7 1 6 9 8 3 7
6 8 4 9 3 5 2 1
8 9 2 7 7 9 5 4
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
SCOUNDREL
Lifestyle | TV&Games
Sport
Results
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email sport@cityam.com
SPORT | IN BRIEF
Cisse keeps Euro dream alive
FOOTBALL: Newcastles Senegal inter-
national striker Papiss Demba Cisse kept
his sides hopes of qualifying for the
Europa League alive with the only goal
in a 1-0 home win over Norwich.
Newcastle are now up to sixth, two
points behind Chelsea albeit having
played one game more.
Thorpe to miss out on London
OLYMPICS: Five-time Olympic gold
medallist Ian Thorpe has failed in his bid
to qualify for the London 2012 200
metres freestyle event. The 29-year-old
came out of retirement last year but
could only manage the 12th fastest time
in the semi-finals of the Australian trials.
Quesne wins maiden tour title
GOLF: Frenchman Julien Quesne
equalled the course record with a
superb 64 to win the Andalucia Open by
two strokes and secure his maiden
European Tour title. The 31-year-old,
who began the final day three shots off
the lead, birdied the 18th in a run of four
birdies in five holes to finish 17 under
par. Italian teenager Matteo
Manasseros second successive 68
clinched second. I think its the best day
of my life. I know I will have some good
weeks this year but Im very happy to
win this early, said Quesne.
Azarenka eases past Sharapova
TENNIS: World No1 Victoria Azarenka
saw off Maria Sharapova to win the
Indian Wells title 6-2, 6-3. The win was
the remarkable 22-year-olds 23rd con-
secutive victory of the year and her sec-
ond over Sharapova, following her
Australian Open final success. I was
just trying to do my best because I
know Maria is a fighter, Azarenka said
in a courtside interview. I always tried
to stay focused and apply as much pres-
sure as I can.
MCLAREN driver Jenson Button
insists he is equipped to challenged
for the world championship after his
new MP4-27 vehicle propelled him to
a commanding victory in the first
race of the new season in Melbourne.
Button finished 2.2 seconds ahead
of defending champion Sebastian
Vettel, while his McLaren team-mate
and fellow Englishman Lewis
Hamilton, who started from pole
position, rounded off a hugely
encouraging start to the campaign
for the Woking-based team by com-
ing third.
Five of the past six winners of this
race have gone on to win the world
title and after a winter of intense
work behind the scenes Button is con-
fident he and Hamilton are armed to
threaten Vettel and Red Bulls
supremacy.
Theres a huge amount of posi-
tives to take away from this weekend:
weve got a great car and we can fight
for the world championships. This is
a perfect start to my season and Im
already looking forward to Malaysia,
said Button, who overtook Hamilton
at the start and never relinquished
his lead.
It was very important for us to get
this one in the bank early on. We
havent been so strong at this point in
the season before, so all in all a great
day. For the last couple of years our
first races have been tricky. Id say
weve been pretty dominant today.
As a team, the win shows how
important the winter is. The guys
have done an amazing job. This win
will definitely help them push hard
in the extra hours they are doing.
Hamilton echoed the praise Button
bestowed on his team but couldnt
hide his disappointment at failing to
turn a superb performance in qualify-
ing into victory.
The 2008 world champions hopes
of clawing Button back were reduced
by the appearance of the safety car
which came out following the retire-
ment of Caterhams Vitaly Petrov on
lap 37 and played into Vettels hands.
It was a shocking start, said
Hamilton. Im not sure what hap-
pened. I let out the clutch and got a
lot of wheel spin. We lost a lot of
ground from there and the safety car
didnt help us.
Its still a great job by Jenson.
Clearly were very quick so we go for-
ward to the next race in good shape.
McLaren team boss Martin
Whitmarsh, meanwhile, summed up
the race weekend as nearly perfect.
Lewis was unlucky with the safety
car, he commented. Jenson drove
majestically, he didnt put a foot
wrong. It was a bit tight on fuel, we
struggled a bit. But its a great way to
start the season. Weve proved weve
got a quick car [and] therell be a few
bits for the next race.
Button and McLaren start the
new season on top Down Under
BY JAMES GOLDMAN
FORMULA ONE
1 J Button McLaren 1h 34min 09.565sec

2 S Vettel Red Bull +00:02.139
3 L Hamilton McLaren +00:04.075
4 M Webber Red Bull +00:04.547
5 F Alonso Ferrari +00:21.565
6 K Kobayashi Sauber +00:36.766
7 K Raikkonen Lotus +00:38.014
8 S Perez Sauber +00:39.458
9 D Ricciardo Toro Rosso +00:39.556
10Paul di Resta Force India +00:39.737
11 JE Vergne Toro Rosso +00:39.848
12N Rosberg Mercedes +00:57.642
AUSTRALIAN GRAND PRIX | RESULTS
NORTHAMPTON director of rugby
Jim Mallinder refused to blame fly-
half Stephen Myler after his errant
pass gifted Leicester the decisive try
and the seasons first silverware in
the shape of the LV=Cup.
The Saints trailed by 10 points with
just over half an hour remaining but
any hopes of staging a comeback
were doused when Myler, who had
kicked all of his sides points up to
that stage, saw an overly ambitious
pass intercepted by Scott Hamilton
and the Kiwi wing ran the length of
the pitch to score.
Sometimes that happens [Mylers
misplaced pass that led to Hamiltons
try]. I think he saw someone coming
out of the line and tried to get the
pass over him, said Mallinder.
It just didnt happen for him. Its
just unfortunate I dont blame him
for trying it.
On our day we could easily have
won that game, but it wasnt our day.
If we had looked after the ball a bit
better in the first half, we wouldnt
have gone in seven points down.
Despite the comfortable margin of
victory, Leicester were forced to sur-
vive a second half onslaught and
although they conceded a late try to
Christian Day, Leicesters director of
rugby Richard Cockerill marveled at
his sides spirited rearguard effort.
There was some good grit and
determination out there we were
under the cosh for the whole of the
second half virtually but the attitude
of the players has been outstanding,
he said. We were a bit fortunate with
the interception taking us out of
sight but I thought we were good for
the win.
ENGLAND spinner Graeme Swann
believes there is room in the side for
both himself and fellow slow bowler
Monty Panesar and insists he doesnt
see the Sussex man as a threat to his
place.
Swann has been a virtual ever-pres-
ent since he replaced Panesar in the
Test team two years ago, but was out-
bowled by his team-mate on the
recent tour of Pakistan.
Panesar took six wickets as
England began their tour of Sri Lanka
with an innings and 15-run win over
a Board Presidents XI on Saturday,
but Swann is pleased to see the
recently recalled Panesar rediscover-
ing his form.
He said: We need two spinners
over here and its great Monty is bowl-
ing so well and has done since he
came back into the team.
Leicester dig deep to claim
LV=Cup at Saints expense
CRICKET
Swann insists
spin twin Monty
is not his rival
FORMER world No1 Roger Federer
secured his fourth Indian Wells title
with a routine straight sets 7-6, 6-3
victory over big-serving American
John Isner last night.
The third seed, who beat Spains
Rafael Nadal in the semi-final, was
pushed all the way in the first set,
eventually taking it on a tie break.
Isner, who scored the biggest win
of his career to date by beating
Australian Open champion Novak
Djokovic in the last four, struggled
against the Federer serve, managing
to win only three points in the entire
match.
The 30-year-old Swiss ace was at
his majestic best in the second set,
breaking the 11th seed twice to
secure the title, the 71st of his illus-
trious career and 19th in the Masters
series.
TENNIS
Federer serves
up Indian Wells
masterclass
Vettel has to settle
for second as British
pair send out early
warning to Red Bull
Button overtook Hamilton
at the start and never lost
the lead in Australia
Picture: GETTY
BY JAMES GOLDMAN
RUGBY UNION
26
14
LEICESTER
NORTHAMPTON
Sport
34
Muamba had a heart attack in Saturdays
match at Tottenham Picture: GETTY
BOLTON midfielder Fabrice Muamba
remained in intensive care for a sec-
ond night, following his heart attack
during Saturdays FA Cup quarter-
final against Tottenham.
Doctors said the 23-year-old former
Arsenal trainee, whose sudden col-
lapse prompted the tie at White Hart
Lane to be abandoned shortly before
half-time, would remain in intensive
care until at least later today.
Muamba, who needed to be resusci-
tated by medics using electric shock
treatment, remains critically ill and
under close observation at the London
Chest Hospital in Bethnal Green.
In a joint statement yesterday
Bolton and the hospital said: Fabrice
Muamba remains in a critical condi-
tion in intensive care. As is normal, he
remains anaesthetised and will be for
at least 24 hours.
Fabrice received prolonged resusci-
tation at the ground and en route to
the London Chest Hospital, where his
heart eventually started working. His
condition continues to be closely
monitored by the cardiac specialists.
Doctors said Muambas cardiac
arrest was likely to be caused by a con-
genital anomaly in his heart rather
than the ill health that is typically at
the root of the majority of cases.
Boltons FA Cup tie with Spurs has
yet to be rescheduled, while their
Premier League fixture against Aston
Villa, which had been due to be played
tomorrow night, has been postponed.
Trotters manager Owen Coyle yes-
terday thanked fans for messages of
support after visiting Muamba.
He said: We have been inundated
by good messages, everyone praying
for Fabrice, which is very important. It
has been a real source of strength for
the family. We know how difficult a
time it is for everyone.
It is great to be talented at football
but its more important to be a gen-
uinely nice man and everyone recog-
nises Fabrice is that. That has pulled
everyone together. We certainly hope
he comes through this. If he pulls
through it would be marvellous.
Bolton were drawing 1-1 with Spurs
when the game was abandoned by
Referee Howard Webb.
MANCHESTER UNITED surged four
points clear at the top of the Premier
League following a crushing win over
relegation-haunted Wolves yesterday,
but their manager Sir Alex Ferguson
still believes the title race will go
down to the wire.
Following their Europa League exit
on Thursday, United took out their
frustration on a Wolves side who
slipped to the bottom of the table fol-
lowing their second five-goal batter-
ing in their last three games.
Jonny Evans prodded United ahead
in the 21st minute breaking his 118-
game duck for the club before
Ronald Zubars sending off for two yel-
low card offences in the space of 11
minutes prompted the floodgates to
open.
Antonio Valencia and Danny
Welbeck struck before the interval
and a Javier Hernandez second half
brace completed a rout that sent out
an ominous warning to Uniteds title
rivals Manchester City not that
Ferguson was willing to get carried
away with his sides display.
The performance was okay, I dont
think it was anything special, he said.
I expect the title race to go to the
wire, always hope for the best and
expect the worst.
There are only nine games left
now, it is just a matter of games get-
ting cut off one by one and hopefully
we achieve what we want to achieve.
Whats significant today is its
reduced the goal difference by five
goals and thats down to three now
and it may make a difference at the
end of the season.
United had lost twice in their three
previous visits to Molineux but never
looked in danger of not collecting
maximum points from the moment
Evans steered them ahead.
The last three visits we have lost
twice, and that is a great turnaround
for us, added Ferguson. I think as
you always find here Wolves make it
difficult for you.
Critically ill
Muamba
still fighting
for his life
United hit top gear in rout of Wolves
but wary Ferguson demands more
BY FRANK DALLERES
FOOTBALL
Torres relief
as star ends
goal drought
MISFIRING 50m striker Fernando
Torres admitted his relief last
night after finally ending his 25-
hour wait for a goal as Chelsea con-
tinued their resurgence by
storming into the FA Cup semi-
finals.
Having failed to hit the net for
almost five months, Torres scored
twice inside 18 second-half min-
utes, with Salomon Kalou, Gary
Cahill and Raul Meireles also help-
ing to set up a potential all-London
clash with Tottenham. It was a
fourth successive win for caretaker
boss Roberto di Matteo since the
sacking of Andre Villas-Boas and,
for Torres, the blessed end of the
most talked-about barren spell in
the European game.
I needed those goals, said
Torres. Ive been working so hard
to get them. Maybe the job of a
striker is to score goals and if you
dont do it people think youre
playing badly. But the support has
been here and I feel the confidence
of the manager now.
Di Matteo, who also steered the
Blues to a landmark Champions
League comeback against Napoli
last week, toasted another step on
the road to recovery for the team
and Britains costliest player.
He said: I think the whole
team, the club and supporters are
happy [for Torres]. Hes a great
team player. You get rewarded
when you work hard in life and
were all happy that he helped us
win. Every game weve won has
given the players, and the team, a
little more confidence.
Defender Cahill headed Chelsea
into the lead with his first for the
club in the 12th minute, and
marked it by revealing a T-Shirt
bearing a message of support for
seriously ill former Bolton col-
league Fabrice Muamba.
Kalou stroked a second before
half-time but the games highlight
came on 67 minutes when, after
152 days of waiting, Torres collect-
ed a Meireles pass and slotted low
past Kasper Schmeichel.
Jermaine Beckford pounced on a
rebound to throw Leicester a life-
line 10 minutes later, but it was
soon overshadowed by Torres sec-
ond, a flicked header, despite a
late second for the Championship
outfit, Ben Marshalls spectacular
long-range effort.
BY FRANK DALLERES
FOOTBALL
5
2
CHELSEA
LEICESTER
BY JAMES GOLDMAN
FOOTBALL
0
5
WOLVES
MANCHESTER UTD
LIVERPOOL manager Kenny Dalglish
insists a potential all-Merseyside FA
Cup semi-final encounter against
Everton will not take place on 15
March, the 23rd anniversary of the
Hillsborough disaster.
Winger Stewart Downing scored
the winner, after former Anfield strik-
er Peter Crouch had cancelled out a
Luis Suarez opener, as Liverpool beat
Stoke yesterday to take their place in
the last four.
The semi-final, against the winner
of a replay between Everton and
Sunderland, falls on 14 or 15 March.
Dalglish said: We wont play on the
15th. The Football Association have
always been exemplary and very sup-
portive. Thats great credit to them.
FOOTBALL
Downing sets
up potential FA
Cup semi derby
Tottenham or Bolton v Chelsea
Liverpool v Everton or Sunderland
Ties to be held at Wembley on 14 and 15 April
FA CUP SEMI-FINAL DRAW
Man Utd 29 22 4 3 73 27 70
Man City 28 21 3 4 69 20 66
TOP TWO
TEAM PLD W D L F A PTS
Torres had
gone nearly
ve months
without a goal
Picture:
GETTY
35
RFU MUST GET HOUSE IN ORDER
A resounding victory over Ireland at
Twickenham on Saturday went a long way to
strengthening Stuart Lancasters case to be
handed the head coachs reins on a perma-
nent basis.
Under the former Saxons coach this
England team are as united as Ive seen them
for a long while and appear to have rediscov-
ered their appetite for the game. Lancaster
deserves enormous credit for having
achieved that in such a short space of time
and Id certainly like to see him retained in
some capacity.
However, as crucial as it is for the Rugby
Football Union to appoint the right man as
head coach, its equally important they get
their own house and structure in order, with
each role inside the organisation clearly
defined.
In the past there has been too much
ambiguity that has in turn led to confusion
and unnecessary conflict. England, as the
most well resourced union in the sport,
should be competing for the Six Nations and
World Cup titles as a result but can only do
so with the correct structure in place.
WALES CREAM OF THE CROP
As spirited as Englands defence of the Six
Nations was, you have to say Wales are
deserving champions. Having won the com-
petition three times in the last eight years
people will inevitably attempt to make com-
parisons between Warren Gatlands men and
the great team of the 1970s.
Im not going to enter into that debate
but I will say that this Welsh team are a
credit to the northern hemisphere and they
will provide a number players for the Lions
squad who tour Australia next year.
Josh Lewsey was speaking courtesy of
GamePlan Solutions: Managing high
profile and popular sport stars; speak-
ers, leaders, motivators, ambassadors
www.gameplansolutions.co.uk
JOSH
LEWSEYS
POST MATCH
VIEW
ENGLAND prop Alex Corbisiero has
given the interim coaching set-up a
ringing endorsement as the Rugby
Football Union reconvenes to decide
whether head coach Stuart Lancaster
should keep the job.
Saturdays convincing 30-9 defeat
of Ireland at Twickenham ensured
England ended the Six Nations with
four wins from a possible five, their
only defeat coming against Grand
Slam champions Wales.
It provided further ammunition
for those who believe Lancasters
quiet, methodical stewardship
deserves to be extended, despite the
presence of more high-profile candi-
dates, such as ex-South Africa coach
Nick Mallett.
And Corbisiero, who also
heaped praise on scrum coach
Graham Rowntree, has left the
RFU in no doubt that Lancaster
and his assistants have proved
popular caretakers during
a positive champi-
onship.
I have nothing
but great words to
say for Graham
Rowntree. It is not
my decision, but
we have all been
very impressed
with him. He is
a guy that com-
mands respect
and players
want to play for
him you can
see that in the
whole team,
said Corbisiero.
You can see that with Stuart
Lancaster and Andy Farrell. We have a
good environment, we play for each
other and we play for the coaches.
Whatever happens, happens, but
there are a lot of positives where we
are at the moment.
The RFUs four-man advisory panel,
which includes operations director
Rob Andrew, Saracens coach and for-
mer England player Richard Hill,
Harlequins boss Conor OShea and ex-
Lions chief Sir Ian McGeechan, is
expected to formally interview candi-
dates on Thursday and Friday.
Mallett, whose four-year stint as
Italy coach ended after last years
World Cup, is the international big-
hitter some believe England need,
having enjoyed notable success with
the Springboks and Stade Francais.
However, the English-born
South African appeared to
accept underdog status follow-
ing Saturdays action, saying:
You cant see the RFU wanting
to change a coach when you
look at the team and how
happy they are.
Lancaster has remained
modest despite turning
around Englands for-
tunes. Asked about
keeping the job, he
said: Thats for oth-
ers to decide, but if
you said to me Id be
walking around
T wi c k e n h a m
a p p l a u d i n g
82,000 people
with a group of
lads I respect
and a manage-
ment group I
respect I would have taken it.
Lancaster gets
player backing to
keep England job
BY FRANK DALLERES
RUGBY UNION
WALES starlet Alex Cuthbert believes

their third Grand Slam success in
eight years is just the start of an era of
success for Warren Gatlands men.
Cuthbert scored a try in Saturdays
16-9 victory over France at the
Millennium Stadium, which complet-
ed a Six Nations clean sweep for the
World Cup semi-finalists.
And the 21-year-old wing, one of
seven players aged 24 or under in the
Wales starting XV, is predicting that a
youthful set-up will blossom into an
all-conquering team.
Weve got the likes of myself at 21
and George North, only 19, said
Cuthbert, who has scored three tries
in his first six Tests.
Weve still got a lot to develop as a
team and as the years go by we can
only get better. I am looking forward
to the future. With the young players
weve got the future is going to be
awesome.
Cuthbert has enjoyed a meteoric
rise, having only taken up the game
five years ago. He added: Two
months ago I was just expecting to be
training with the Blues in the senior
squad, let alone scoring a try in the
Grand Slam game.
Youthful Wales will only
get better, says Cuthbert
RUGBY UNION
Wales 5 5 0 0 109 58 10
England 5 4 0 1 98 71 8
Ireland 5 2 1 2 121 94 5
France 5 2 1 2 101 86 5
Italy 5 1 0 4 53 121 2
Scotland 5 0 0 5 56 108 0
SIX NATIONS
TEAM P W D L F A PTS
MCLAREN AND BUTTON START
AS THEY MEAN TO GO ON
ENGLISHMAN WINS IN AUSTRALIA
AND HAMILTON TAKES THIRD: P33
LEX
VAN DAM
RICHARD
FARLEIGH
ALLISTER
HEATH
DAVID
JONES
TIM
GUINNESS
In association with Champagne reception sponsor Produced by
Tim Hughes, Managing Director, IG Index
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