Greek crisis MARKETS BET ON BAILOUT p8 BUSINESS WITH PERSONALITY Issue 1,393 Wednesday 1 June 2011 www.cityam.com FREE New bidder CITY BACKS PLANS enters race for AssetCo

▲ EXCLUSIVE FOR NHS SHAKE-UP BY ALISON LOCK A THIRD bidder is circling troubled

▲ London fire engine supplier AssetCo in POLITICS addition to the two already named, BY ELIZABETH FOURNIER The health reforms City A.M. has learned. currently propose 9% that ‘any willing Manchester-based turnaround THE CITY has thrown its weight provider’, whether and investment house Consilia behind controversial government NHS, private or Partners is currently meeting plans to reform the NHS, according to voluntary, could now AssetCo’s shareholders as it prepares 24% provide NHS the latest results from our Voice of the % services. Do you to make a bid. City panel, run in association with 67% support these plans? Consilia enters the bidding along- PoliticsHome.com. side Bahraini fund Arcapita and Italian More than two-thirds of our panel of Yes investor Investindustrial, both of business and finance professionals which have previously submitted said they were in favour of plans to No offers for AssetCo. allow “any willing provider”, whether Don’t know The three bidders are keen to snap NHS, private or voluntary, to offer pub- Do you up AssetCo, which remains a prof- lic health services, and 65 per cent said support itable operating company, as its share they supported proposals for a regula- 9% plans for a price has slumped to 3.6p per share tor that would promote competition regulator from highs of 66p in November 2010 to promote to provide NHS services in England. competition after a series of financial setbacks and The panellists, recruited to repre- internal strife. 26% in NHS sent a cross-section of the business and % services in However, City A.M. understands that financial community in and around 65% England? AssetCo faces a claim for £180,000 in London, were responding to plans put unpaid bills from a second creditor, forward in January by health secretary Yes parts supplier Supply 999, alongside Andrew Lansley for a radical shake-up No Northern Bank’s £1.3m claim for the in how the NHS is run. More than 500 return of its overdraft. panellists responded. Don’t know Supply 999, which was part of Their views provide a stark contrast AssetCo until December 2010 when it to the backlash that the government The results of our poll show the City is overwhelmingly in favour of health secretary Andrew Lansley’s NHS reform bill Picture: REUTERS had a management buyout, joined has faced since Lansley’s Bill was Northern Bank’s creditor petition on published. Unions, NHS leaders and “GPs have gone through a long that the reforms should be significant- Cameron’s handling of the dispute. 17 May. MPs from all the major political par- training in providing first level health ly delayed to allow for further analysis. ALLISTER HEATH: P2 Arcapita’s most recent offer of 14- ties have insisted that the reforms care,” said one panellist. “It is unrea- But just eight per cent of our panel- If you wish to apply to join our panel of 21p per share on 14 March is still need to be rethought. sonable to expect them to be experts lists said they most approved of Nick business and finance professionals, and take lodged with the Takeover Panel. Under the plans, 151 primary care in health economics and the compet- Clegg’s handling of the NHS reform our weekly, 30-second email survey, please go Gareth Taylor of Investec, which trusts (PCTs) and strategic care author- ing forces of healthcare providers – we debate, with 37 per cent backing David to www.cityam.com/panel advises Arcapita, said that offer no ities will be disbanded by 2012 and should have specialists doing this.” longer applies because AssetCo issued replaced by consortia of GPs responsi- Lansley has admitted the cost of the a highly dilutive share placement later ble for commissioning services. reforms would include a £1bn redun- in March – but it remained interested Though 71 per cent of participants dancy bill from scrapping more than in making a bid. in our poll came out in favour of scrap- 24,000 NHS positions, but said that the “Arcapita remains an interested ping PCTs, just 17 per cent felt that GPs changes are projected to save more party open to dialogue with the man- should have sole responsibility for than £5bn this parliament. agement team,” he said. commissioning public health services, Downing Street was forced to deny AssetCo’s shareholders have seen with 41 per cent preferring that a over the weekend that Lansley may their stakes diluted after it issued wider range of NHS professionals also quit the cabinet over changes to the 160m 10p shares to a small group of be involved in the process. proposed reforms, as Liberal Democrat investors to raise £16m in March. A further 13 per cent said that local members of the coalition push for the One investor told City A.M. his fund councillors should also be on commis- bill to be watered down. was interested in an external bid as it sioning bodies, to give greater demo- Last month, deputy prime minister feared the alternative would be anoth- cratic accountability to the process. Nick Clegg called for clauses on private er huge placement at 1p per share or a Just 11 per cent said commissioning sector involvement and encouraging In association with Apply to join today at sale to one investor for a nominal sum, services should remain unchanged. competition to be removed, and said PoliticsHome.com www.cityam.com/panel PoliticsHome.com leaving its stake worthless.

▲ ▲ ▲ t ▲ Certified Distribution FTSE 100 5,989.99 +51.12 DOW 12,569.79 +128.21 NASDAQ 2,835.30 +38.44 £/$ 1.65 unc £/¤ 1.14 -0.01 ¤/$ 1.44 +0.01 04/04/11 - 01/05/11 is 103,899 2 News CITYA.M. 1 JUNE 2011 Why the NHS needs to be reformed NEWS | IN BRIEF Red tape cut for small business The EU has agreed to simplified accounting rules for small businesses, The NHS is very different to other ing nearly 1m people, under contract workers quit the UK. So the only way cutting the red tape for the UK’s small- health systems in other countries. For to the regional government. Various to spend much more on health over est firms. Business ministers from example, in Germany, a society which private sector contractors have the next couple of decades – and in 50 across Europe met in Brussels yesterday many would argue has a better overall improved services by providing longer years’ time spend perhaps 20-25 per and agreed accounting exemptions for health system than Britain’s (and opening times and using IT properly, cent of GDP – is to allow consumers to “micro-entities”. Business minister Ed retains universal access), just 31 per with patients in many cases now able contribute directly to the costs of Davey said it could save firms as much cent of hospitals are owned by the gov- to view up to the minute waiting healthcare, as is already the case in as £300m a year. To join the new cate- ernment. Slightly more – 32 per cent, times for hospitals and GP surgeries nations such as France or Switzerland. gory of companies created by the agree- EDITOR’S LETTER and rising – are owned by for profit over the internet, as a report from the Replacing one state-owned monop- ment, companies must not exceed two firms and 37 per cent are owned by Reform think-tank points out. oly by a privately owned one would be of three criteria: a balance sheet total of ALLISTER HEATH the not-for-profit charitable sector. The future for Britain is to move stupid. What is needed instead is €250,000 (£217,000); a net turnover of Over there, the idea that the state down the continental European route: more competition, property rights €500,000 and an average of 10 employ- FOR once, some good news for the gov- must own all hospitals is seen as a a social insurance system with mixed and an incentive for new entrants to ees during that financial year. ernment’s proposed healthcare weird idea redolent of an archaic sources of financing and a variety of provide the best services at the cheap- reforms. They may have been worldview. What matters are out- providers. There is no other way for- est cost to consumers, who need to be Bank of Ireland deal disappoints slammed in most quarters but mem- comes and ensuring the best bang for ward. As consumers become richer, empowered. The coalition’s plan has Bank of Ireland said it would impose bers of our special panel of business the taxpayer’s buck. they understandably want to spend flaws – not least the idea that GPs large losses on junior bondholders and and financial professionals love them. It is not just Germany which suc- more of their money on healthcare. should be given so much responsibili- disappointed investors by withholding Over 500 took part in our latest survey cessfully involves the private sector to The problem is that the government is ty for commissioning spending – but details on the possibility of a more (in partnership with PoliticsHome), as a much greater extent than we do to out of money: the budget deficit also contains many good ideas. It is attractive deal for holders willing to we report on page 1, and two-thirds ensure that the whole population remains vast and even its attempt to time for radical thinking on how to take shares instead. Bank of Ireland’s backed the idea that a variety of enjoys a higher level of healthcare. In increase real terms health spending build a world-class British healthcare lower tier two paper dropped sharply organisations, whether NHS, private Spain, the region of Valencia has slightly year on year (rather than cut- system fit for the twenty-first century. after the lender said it might offer an or voluntary, should now be able to called on for-profit companies in a big ting it) is proving extremely painful. Apply to join our panel of City profession- equity alternative to its cash buyback provide NHS services. This is a sensible way since 1997. A private consortium Taxes are nearing their maximum als at www.cityam.com/panel rather than laying out concrete plans for view to take, even if most other demo- provides all healthcare services for level: any more and the economy will [email protected] such an offer. Ireland’s largest bank graphics in the UK disagree. over 20 per cent of that region, cover- wither away as mobile firms and Follow me on Twitter: @allisterheath wants to avoid falling into state control.

7th Floor, Centurion House, 24 Monument Street, London, EC3R 8AJ US housing in Tel: 020 7015 1200 Fax: 020 7283 5334 Email: [email protected] www.cityam.com Editorial Editor Allister Heath Deputy Editor David Hellier double-dip fall News Editor David Crow Night Editor Katie Hope Business Features Editor Marc Sidwell Lifestyle Editor Zoe Strimpel ▲ US ECONOMY “This suggests there is little hope of Sports Editor Frank Dalleres BY JULIAN HARRIS a decent bounce back in real con- Andrew Sentance said the Bank of England was in danger of losing its credibility Art Director Craig Gaymer sumption growth,” commented Paul Pictures Alice Hepple US HOUSE prices in March sank even Dales of Capital Economics. Commercial deeper than the levels last seen dur- Real consumption grew just 2.2 per Sales Director Jeremy Slattery ing the financial crisis, according to cent in the first-quarter of the year Sentance attacks Bank Commercial Director Harry Owen the widely regarded Standard and compared to a year earlier, while GDP Head of Distribution Nick Owen Poor’s Case-Shiller survey. growth came in at just 1.8 per cent. The 20-city index fell to 138.16, There was also bad news for US below the April 2009 low of 139.26, manufacturing, with a purchasing ▲ UK ECONOMY with Sky News. Distribution helpline meaning that home prices have fully managers’ index for Chicago plum- “If inflation does not come down If you have any comments about the distribution BY KATIE HOPE of City A.M. Please ring 0207 015 1230, or email retreated from gains posted from May meting to 56.6 in May -- down from in the way that the Bank is suggest- [email protected] 2009 through June 2010, putting 67.6 in April. Disruptions to the auto- OUTGOING Monetary Policy ing – and I think there is a big risk housing in a double-dip downturn. mobile trade from the Japanese earth- Committee (MPC) member Andrew that is the case – than that is going to Editorial Statement Prices fell 3.6 per cent on a year-on- quake were blamed for the figures. Sentance used his last day in office to have a big knock on effect on the This newspaper adheres to the system of year basis in March, compared with a launch a stinging attack on the Bank credibility of the bank’s commitment self-regulation overseen by the Press Complaints 3.3 per cent year-on-year drop in Ben Bernanke’s Federal of England. to its inflation target,” he added. Commission. The PCC takes complaints about the February. Reserve faces growing Sentance, whose five-year term Sentance, who has consistently editorial content of publications under the Editor’s Meanwhile, in further negative ended yesterday, said the Bank of voted for a rise in interest rates over Code of Practice, a copy of which can be found at concerns over the www.pcc.org.uk data for the US, confidence on the US England was in danger of losing its the past 12 months in a bid to tackle weakening American Printed by Newsfax International, high street sank to an index score of credibility. “I think that there is a big the rising rate of inflation, accused his Beam Reach 5 Business Park, 60.8 this month, from a revised 66 in recovery risk now emerging to credibility of fellow MPC members of “not respond- Marsh Way, Rainham, Essex, RM13 8RS April – a six-month low. the Bank,” he said in an interview ing at all” to above-target inflation. WHAT THE OTHER PAPERS SAY THIS MORNING

first-time buyers priced out of the market over the past three years get a foot on the ladder. UK CONSUMER RECOVERY SET TO BE MONARCH CHANGES COURSE TO BEAT OPENX RAISES $20M AS IT SIGNALS LIBYA’S GOLDMAN DALLIANCE ENDS IN SLOWEST IN 180 YEARS SHELL AND ROSNEFT IN TALKS ABOUT DECLINE OF PACKAGE HOLIDAY NEW ERA FOR ONLINE ADVERTISING LOSSES, ACRIMONY The UK economy is set to experience ARCTIC DEAL Falling demand for package holidays OpenX, a UK-founded digital display In early 2008, Libya’s sovereign- the slowest pick-up in consumer Royal Dutch Shell has held talks with has forced Monarch to end more than advertising firm, has raised $20m wealth fund controlled by Colonel spending of any post-recession period Rosneft about exploring blocs in the four decades as a charter airline to (£12m) from SAP Ventures, AOL Moammar Gadhafi gave $1.3bn to since 1830, according to a Financial Arctic that the Russian state oil cham- become a scheduled carrier instead. Ventures and two giant Japanese Goldman Sachs Group to sink into a Times analysis of official forecasts. pion had originally committed to BP. Monarch will confirm today that its groups to help it take on Google, currency bet and other complicated Families are expected to spend just Peter Voser, chief executive, said talks strategy is changing and it will now Yahoo! and Microsoft. The software trades. The investments lost 98 per slightly more by 2015 than they were last week in Russia with Rosneft and compete directly with easyJet, company will use the cash to drive cent of their value, internal Goldman before the financial crisis hit in 2008, Igor Sechin, the energy tsar, had Ryanair and British Airways in the growth in its core real-time advertis- documents show. What happened as high inflation, tax rises and slow looked at “a multitude of blocs”. scheduled market. The shift will be ing auction services, which grew rev- next may be one of the most peculiar wage growth eat into disposable These included the three in the South accompanied by a revamped brand enue 600 per cent last year after it footnotes to the global financial cri- incomes. Kara Sea that had been earmarked for and charging structure. signed exclusive ad distribution deals sis. In an effort to make up for the the alliance with BP. with the likes of Orange, the mobile losses, Goldman offered Libya the BUILDERS PROP UP HOUSE SALES BROKEN FOOD SYSTEM WILL phone firm. chance to become one of its biggest WITH £835M HOUSE OF FRASER IN £250M BOND AGGRAVATE HUNGER, OXFAM WARNS shareholders, according to docu- Housebuilders have pumped £835m REFINANCING Food prices will double in the next 20 CUCUMBER E.COLI SCARE: UKSHOPS ments and people familiar with the into purchases of the homes they Department store group House of years, pushing millions of the world’s REASSURE CONSUMERS AS SPAIN matter. build to support struggling buyers Fraser has refinanced its bank debts poorest people into hunger, due to a DEMANDS COMPENSATION and maintain sales volumes. The by issuing a £250m bond. The over- “broken” food system that causes a British supermarkets have urged shop- TOYOTA LIFTS OUTPUT VIEW Home Builders Federation, which rep- subscribed issue of senior secured devastating gap in the food supply, a pers to carry on buying salad, insist- Toyota said yesterday that it expects resents the industry, said builders notes – with an annual coupon of report from Oxfam warns. Food ing their produce is free of the E.coli to resume production at 90 per cent had invested in shared equity 8.875 per cent – carries a seven-year prices are set to increase by between outbreak that has claimed 16 lives of normal capacity during June and schemes. These have helped 30,000 term. 70 and 90 per cent by 2030. across Europe. match last year’s output for the year. CITYA.M. 1 JUNE 2011 News 3

Southern Cross chairman Christopher Fisher believes landlords Spain would back will agree to a rental cut Carstens for IMF

▲ WORLD ECONOMY Spain’s vote is with the seat, an indivis- ible seat,” Salgado said. BY HARRY BANK But she also immediately said, “our SPAIN wants France’s Christine view is that Lagarde is an excellent Lagarde to head the IMF, but the candidate and that is who we want to fund’s group voting procedures would occupy the position.” oblige it to back Mexico’s Agustin Mexican Central Bank governor Carstens if he stands, economy minis- Carstens and French finance minister ter Elena Salgado said yesterday. Lagarde are the only declared candi- “Our presence in the IMF shares a dates to head the IMF after previous seat with Mexico, with Venezuela and director Dominique Strauss-Kahn other countries of Latin America, so resigned to fight sex assault charges. Rental battle puts Southern Cross on brink

▲ HEALTHCARE Southern Cross, said:“We believe that BY DAVID HELLIER all of the key stakeholders in Southern Cross want this restructur- THE chances of the UK’s largest pri- ing to succeed. vate sector nursing home operator “We are in dialogue with the collapsing increased last night as two Department of Health, our lenders of its landlords refused a plan that and landlords and they continue to would see its rents reduced by 30 per support the process. The objective cent over the summer. will be to emerge with a stable and Southern Cross, which cares for sustainable business model for the more than 30,000 old people, says it continuing care of our residents.” needs its landlords to agree to a rent However, last night it emerged that reduction to give it a chance of the government was preparing for restructuring its finances. the possibility of the group failing to But last night it emerged that see itself through its financial diffi- Bondcare and Four Seasons, two of its culties. landlords, had decided to resist the The group has been struggling to move and look for another operator pay its rents and is on the verge of col- instead. lapse. It recently warned it was in Sources at Southern Cross said they “critical financial condition” as it remained hopeful that NHP, its reported a half-year loss of £311m. biggest landlord, and others would Many of its rent deals were struck back the life-saving rental cut scheme during boom times in the industry which would enable the group to and the group has also been hit by trade through the summer whilst try- some misguided property deals. ing to find an equity partner to inject If the rental reduction pro- £100m or so into the cash-strapped gramme, due to run from today until business. 30 September, goes through, Southern Cross said that it wanted Southern Cross advisers Greenhill to reach a deal with its landlords by and Clifford Chance, will hope to the end of today. tempt an equity partner to invest Christopher Fisher, chairman of around £100m in the group. SIP and Betfred EIB calls halt to in final Tote race Glencore finance ▲ BUSINESS OF SPORT ▲ COMMODOTIES THE winning bid for the Tote is set to THE European Investment Bank (EIB) be announced tomorrow – with fron- has suspended new financing to trunners Sports Investment Partners Glencore over concerns about the (SIP) and bookmaker Betfred neck and mining giant’s alleged tax avoidance neck at the finish. in Zambia. A Sky News report yesterday sug- The bank, which is the European gested SIP chief Sir Martin Broughton Union’s financing arm, had already had increased the value of his offer to agreed to lend $50m (£30 million) to the Treasury by £2m and the overall Glencore to renovate a smelter and value by a “substantially larger sum” reduce sulphur dioxide emissions at just before yesterday’s 7pm bid dead- its Mopani Copper Mines subsidiary line. in Zambia. The winner is set to be announced However all future funding has by Culture secretary Jeremy Hunt. now been cut after an intervention by Last night both SIP and Betfred Philippe Maystadt, the EIB president. declined to comment. Glencore denies tax avoidance. 4 News CITYA.M. 1 JUNE 2011 Nokia shares tumble as firm abandons targets

▲ TECHNOLOGY the industry, had lost too much mar- from its devices and services business ket share to ever regain its former in the second-quarter will be “substan- BY JENNY FORSYTH standing. tially below” its previous forecast of NOKIA’S share price tumbled to its And the change in outlook raised between €6.1bn and €6.6bn. lowest in 13 years yesterday after the fresh doubts over whether the compa- “Android is gaining strength. Apple mobile phone maker abandoned ny’s new chief executive Stephen Elop is Apple, of course,” he told analysts. He hope of meeting key targets it set just can deliver on the turnaround he also said management issues had hurt weeks ago. promised in February. business in China. “Given the unex- Shares plunged 18 per cent to €4.75 Elop, brought in last year to help pected change in our outlook for the (£4.16), wiping some €3.8bn off its revive Finland’s flagship technology second-quarter, Nokia believes it is no market value as investors worried company, blamed both weak sales longer appropriate to provide annual Investors fear chief executive Stephen Elop will not be able to turn around Nokia’s fortunes that Nokia, once a leading force in and price cuts. He warned net sales targets for 2011,” the company said. NEWS | IN BRIEF

Wal-Mart gets Massmart consent Lonrho assets see revenue grow US grocer Wal-Mart yesterday got the African investor Lonrho last night report- green light for its $2.4bn (1.5bn) pur- ed a 29 per cent rise in six-month revenue chase of most of South African discount on last year to £61.1m, and a narrowing in retailer Massmart. South Africa’s compe- pre-tax losses to £2.9m. The firm, once tition body said Wal-Mart must not cut part of the London & Rhodesia conglom- jobs for two years and develop local sup- erate alongside miner Lonmin, said the six pliers as part of the deal, first mooted in months to the end of March had been September. The conditions were less strong for trading, with growth across all stringent than feared, helping to its divisions: agriculture, infrastructure, strengthen the rand against the dollar. transport, hotels and support services.

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'LVFODLPHU2XU6HPLQDUVDUHSXUHO\HGXFDWLRQDOLQQDWXUH:HGRQRWDGYLVHXSRQRUWLSDQ\WUDGHVVKRZQLQDQ\ VHPLQDU$OOWUDGHVGHPRQVWUDWHGZKLOVWRQ.QRZOHGJHWR$FWLRQ¶VFRXUVHVDUHIRUHGXFDWLRQDODQGLOOXVWUDWLRQSXUSRVHV RQO\7KHVHSURGXFWVDUHQRWVXLWDEOHIRUDOOLQYHVWRUV3OHDVHPDNHVXUH\RXXQGHUVWDQGWKHULVNVLQYROYHG CITYA.M. 1 JUNE 2011 News 5

APPLE chief execu- tive Steve Jobs, who spent months on medical leave, will Alliance Trust buys open an annual developers’ confer- ence next week Picture: back £68m shares REUTERS

▲ FUND MANAGEMENT The buybacks reduced its share price discount to 15.3 per cent, up BY ALISON LOCK from 17-20 per cent over the past year. ALLIANCE Trust has bought back Alliance opposed Laxey’s call for a almost £70m of its stock since formal buyback mechanism but shift- February to improve its share price, it ed strategy in February to accept buy- said yesterday. backs and now uses them to keep the The trust, which battled activist discount at about 15 per cent. fund Laxey Partners over the gap “The step-change in the company’s between its share price and net asset active use of buybacks in recent value until May, bought and cancelled months will continue,” it said in its 18.1m shares by 25 May for £67.7m. interim management statement. Steve Jobs to return to the Apple stage

▲ TECHNOLOGY joined by his executive team during BY HARRY BANKS the keynote speech. Jobs typically takes the stage alone at most new APPLE chief executive Steve Jobs, who product or service launches. spent months on medical leave, will Channing Smith, co-manager of open an annual developers’ confer- the Capital Advisors Growth Fund, ence next week showcasing the iPad said he was “very surprised but maker’s latest computer software and happy” to see that Jobs appeared to be a new cloud computing service. taking a more active role in strategic Apple’s shares rose 3.1 per cent to planning, though he was also encour- $347.83 after it said yesterday that aged that Apple was letting other Jobs, along with a team of executives, executives share the spotlight. will deliver the keynote speech at the “The biggest overhang on Apple’s 6 June conference. It was unclear, stock is the health concerns sur- however, if the chief executive is rounding Steve Jobs and the move to returning from medical leave. show a united front from the man- An appearance by Jobs, a survivor agement team is overdue,” Smith of a rare form of pancreatic cancer, said. would mark one of the few occasions Jobs and his team plan to unveil a he has showed up in public on the new cloud-based service called company’s behalf since going on med- iCloud, which will offer remote com- ical leave – for an undisclosed condi- puting and data over the internet, tion – in January. and a slew of software upgrades at In March, a thin but energetic Jobs the conference including Lion, its took to his now-familiar platform at Mac OS X computer operating system, San Francisco’s Yerba Buena Centre to and iOS 5, the next version of its unveil the iPad 2, drawing a standing mobile operating system. ovation after months of frenetic Apple – which has so far only pro- media and investor speculation about vided content through its iTunes his health. store – has been gearing up for the But this is the first time in recent launch of cloud services by building a years that Apple has said Jobs will be huge data centre in North Carolina. Half of retirees Novae confirms to leave nothing Omega talks ▲ INSURANCE ▲ INSURANCE HALF of UK retirees will not be able to LLOYD’S insurer Novae ended specula- afford to leave relatives an inheri- tion about its plans to merge with rival tance, new research out today shows. Omega Insurance yesterday, confirm- More than a quarter of this year’s ing it had opened Omega’s books. retirees believe it will be impossible to Novae, which wrote £587.7m of leave anything as inheritance, accord- insurance in 2010, said it was under- ing to a survey by the Prudential, taking due diligence to evaluate the while 22 per cent of respondents were merits of a possible merger. not sure their savings would fund It joins unlisted Lloyd’s insurer their retirement. Canopius among named bidders for Concerns over how to fund retire- Omega, as well as unconfirmed bids ment comfortably persist, with only 39 from Delphi Financial and Barbican per cent of people surveyed confident Insurance in the past five months. that they have saved enough. Average However, discussions with Canopius expected retirement income was have taken months and analysts said it £16,600 per year, the survey found. may take a while to finalise any bid. 6 News CITYA.M. 1 JUNE 2011 Serious Fraud Office to probe EADS bribery claim

▲ REGULATION services for the Saudi National Guard, made and these are being properly which protects the Kingdom’s royal investigated,” an EADS spokesman BY HARRY BANKS family. said. The SFO declined to comment. BRITAIN’S Serious Fraud Office is “It is the case that the SFO are look- The allegations surfaced in employ- investigating allegations that ing at it (the contract) but have been ment tribunal proceedings and were European defence group EADS bribed trying to keep it under the radar made by a former GPT employee who Saudi Arabian officials to win a because it’s a sensitive issue,” a source claimed Saudi officials were given $3.3bn (£2bn) communications con- said yesterday. luxury cars, jewellery and large sums Iceland finance minister Steingrímur Sigfússon said economic prospects had brightened tract. GPT Special Project Management is of cash from London accounts The probe centres on a contract a subsidiary of Paradigm Services, a through intermediaries. awarded to GPT Special Project unit of Astrium, a satellite arm of Tough British anti-corruption laws Management, owned by EADS, to pro- EADS. will come into force in July, but only Iceland eyes bond issue vide communications and intranet “Certain allegations have been for crimes committed after that date.

▲ CAPITAL MARKETS and UBS as lead managers. BY HARRY BANKS Iceland is keen to return to the inter- national capital markets and get its ICELAND is planning to meet investors economy back on a normal footing but this month about a possible Eurobond, has been prevented from doing so due one of the lead managers said yester- to uncertainties over a dispute with day, as the country prepares its first Britain and the Netherlands over more international sale of bonds since its than $5bn (£3bn) in “Icesave” debt. economic meltdown. The government now expects most Iceland, which is recovering from its of that debt to be covered by the estate worst-ever downturn following the col- of Landsbanki, the failed bank which lapse of its top banks, has planned ran the Icesave accounts, while aid investor meetings for June 1-8 and has from the IMF and its Nordic neigh- appointed Barclays Capital, Citigroup bours looks set to flow uninterrupted. CITYA.M. 1 JUNE 2011 News 7 Aldermore says loans to SMEs Serco jumps have risen 75pc

▲ on Indian buy BANKING

BRITISH bank Aldermore said its loan ▲ SUPPORT SERVICES of Blackstone’s clients, will stay on as book to small and medium-sized BY MARION DAKERS customers of Intelenet. enterprises (SMEs) was up 75 per cent Chris Hyman hopes for growth in office outsourcing Picture: Micha Theiner/CITY A.M. The purchase, funded through to £469m at the end of the first-quar- SERCO shares were among the top ris- Serco’s debt facilities, is expected to ter. SERCO’S ADVISERS ON THE INTELENET DEAL ers in the FTSE 100 yesterday after the add to the group’s earnings in the first “Aldermore is continuing to lend at outsourcing giant bought Indian back- full year of ownership. The deal must record levels to small businesses – our office company Intelenet for £385m. be approved by Indian authorities. outstanding loan book to SMEs has He recently led the legal team Serco, which has been gunning for Serco chief executive Chris Hyman increased 75 per cent over the last WILLIAM advising Capital Shopping Centres on more work overseas, said it expects the said the firm’s broad customer base, year – but clearly not all banks are BUCKLEY its £1.6bn Trafford Centre purchase – business process outsourcing (BPO) economies of scale and market posi- willing or able to increase small busi- the UK’s largest single property deal. marketplace to grow up to 15 per cent tion in seven countries made the deal ness lending,” chief executive Phillip LINKLATERS He also led the Linklaters team acting a year to reach $291bn (£177bn) global- a good fit. Serco shares closed 3.5 per Monks said. for Standard Chartered’s biggest ly in the next five years, and that cent higher at 575p yesterday. Last week, the Bank of England said shareholder Temasek in the bank’s Intelenet’s £500m order book would leading lenders -- principally Barclays, £1.78bn rights issue in 2008. give it a valuable inroad. ANALYSIS l Serco Group HSBC, Lloyds and Royal Bank of THOUGH most of the work on Serco’s Managing associate Sevi Hebbur Intelenet’s customers include 620 Scotland – had missed targets for lend- deal to buy Intelenet was done in joined Linklaters in 2005 and has Barclays, State Bank of India and Tata, p 577.00 ing to small businesses. India, magic circle law firm Linklaters advised on many deals including and the company employs around 31 May Aldermore, set up in 2009, is backed advised the outsourcer on the UK BPCL’s equity sale to Oman Oil. 31,000 people. UK offices at Plymouth by private equity companies AnaCap aspects of the purchase. Indian law firm Talwar Thakore & and Fort William will remain open, a 580 and Morgan Stanley Alternative Leading the team was William Associates, which has a deal with Serco spokesperson said. Investment Partners. Buckley (pictured above), who joined Linklaters for Indian work, advised Serco has bought the firm from Linklaters as a trainee solicitor in 1990 Serco from its Mumbai office. Indian In April, Monks called on the asset manager Blackstone, with minor- 540 Independent Commission on Banking before working his way up to partner investment bank Avendus also worked ity investors Barclays, HDFC and the to ringfence retail bank deposits from in 1999. for Serco during the sale. firm’s management also selling stakes. investment banking units. All three companies, and a number 9 Mar 29 Mar 18 Apr 12 May HSBC Germany in talks with WestLB

▲ BANKING BY JULIET SAMUEL deal. Investec’s Gareth Hunt said: “Acquisition of a European corpo- HSBC’S German private banking rate book makes strategic sense pro- arm is in talks to buy a large part of vided the price is right.” WestLB, the nationalised German But he added: “That said, we lender. would very much like to see Andreas Schmitz, chairman of announcements of rationalisations HSBC Trinkaus & Burkhardt and/or closures alongside announce- Rothschild, has said that the bank is ments of acquisitions.” “in talks” to buy a chunk of the Many analysts were disappointed German bank. He did not confirm by HSBC’s recent strategic review, in which unit HSBC is looking at, but it which it announced moves to sell is thought to be the structured off large parts of its North American finance and corporate customers business, estimated at a value of business. $25bn, but did not go further and However, the German govern- name other assets that it will sell to ment might not want to sell off its slim down the business. stake in WestLB in parts and might Chief executive Stuart Gulliver instead think that it can get better has promised a “series of announce- value by selling the bank as a whole. ments” on disposals as deals are con- Analysts had mixed views on the firmed. NEWS | IN BRIEF PART TIME MBA Desire finds North Falkland leads Salamander farm out in Vietnam FULL TIME BENEFITS Oil and gas exploration group Desire Independent oil and gas company Petroleum yesterday revealed it had Salamander Energy yesterday announced Studying for an MBA at Westminster Business School can give your career found two new leads from early results an agreement with Japanese oil and gas a boost, as well as increase your salary by 40%. It can also help you to of a 3D seismic survey over its acreage in exploration JX Nippon to farm out a 20 change industry, sector, or to become an entrepreneur, or even change the the North Falkland Basin and has com- per cent interest in Block 101-100/04 that pleted a detailed survey in order to iden- contains the Cat Ba oil prospect offshore world through work with charities and other not-for-profit organisations. tify new targets. Chairman Stephen Vietnam. Chief executive James Menzies Phipps said the prospect inventory will said the transaction reduced Salamander’s Join them. Join us. continue to grow as fully processed seis- financial exposure to the drilling while Find out more and apply now for September 2011. mic data is delivered and interpreted staying leveraged to the upside in the westminster.ac.uk/mba towards the end of 2011. event of success at Cat Ba. Blinkx unveils fashion tie-up Capita buys health recruiter The world’s largest video search engine Outsourcing specialist Capita has acquired WESTMINSTER Blinkx yesterday announced a partner- specialist healthcare recruitment firm BUSINESS ship with FashionTV, CHIC.TV and VID- Team24. Capita is paying an initial £24m CAT to offer fashion, beauty and for the recruiter, with up to £2m more SCHOOL celebrity-style enthusiasts access to payable depending on the firm’s perform- fashion advice, news and trends. The ance in the year to 31 March, 2012. company has made more than 720 part- Team24 provides nurses and doctors at ners and indexed over 35m hours of short notice for a range of placements video and audio content to date. across the NHS and the private sector. 8 Focus on Greece CITYA.M. 1 JUNE 2011 Even if the ECB gets its way, its task will only get harder

t’s hardly surprising that when it If the EU goes down this route, it will comes to scary piles of debt, EU show that it is the ECB, and not the bureaucrats are no more willing to diplomats, that is calling the shots. Two Iconfront the horrible truth than board members of the Bank have ordinary consumers. The truth is that stepped up recently to squash attempts Greece faces a funding shortfall of €60- at an early restructuring: first Juergen 80bn next year, a year in which it was Stark warned that it would be “worse meant to be ready to go back to markets than Lehman” and then Christian Noyer for cash. opined that it would be a “horror story”. But even at the time, economists saw So what can Greece and the EU do the rescue as a lavish way of kicking the about this mountain of debt? It’s easy to debt can down the road. Greece’s debt is agree that the state needs a radical over- still forecast to reach 160 per cent of GDP haul, not least so that it is capable of col- Greeks have now been camped out in Athens’ Syntagma Square for days to protest the government’s handling of its debt crisis before coming down, even if it does lecting its own taxes and selling off at somehow meet its deficit target of 7.6 least €50bn of assets. per cent this year (having missed last The ECB is betting that it will be easier year’s 8.6 per cent target by 0.9 per cent). to force through this reform while The latest mooted deal – a boost to the Athens is living hand-to-mouth on EU first bailout in return for more promises cash than it will be after Greece has been Hope of fresh Greek that Athens won’t be able to keep – is allowed to renege on its debt obligations. another attempt to move the can down But ultimately, the Bank is trying to the road, but it could prove to be more of push together two repelling poles of a a futile tap than a kick. magnet: Greeks, who don’t want anoth- So what is the alternative? The EU er bailout tied to spending cuts – and appears to be creeping back from even Germans, who don’t want to pay for it. rescue lifts markets tentative moves to “reprofile”, “resched- ule” or “softly” restructure Greece’s debt. Instead, it will hand out the cash to stop Athens going bankrupt in July, and then BOTTOMLINE ▲ EUROZONE worse than the 10.5 per cent drop The German insistence on bur- worry about what to do in August. Analysis by Juliet Samuel BY JULIET SAMUEL seen in February. den-sharing, in part driven by popu- The optimism was fuelled by the lar domestic opposition to another MARKETS across Europe opened to a prospect of an extension in Greece’s bailout, had barred a deal because strong rally yesterday after reports €110bn (£96.2bn) bailout loans that the ECB is anxious about allowing that Germany is weakening its might not also include a broader haircuts both on the Greek debt it opposition to a second Greek restructuring of its debt to other cred- holds and on that held by banks bailout. itors. Germany has been pushing for across the Eurozone. The initial burst of risk appetite a “soft restructuring”, forcing private Capital Economics’ Jonathan was later knocked by US data and creditors and the ECB to take some of Loynes said: “This stand-off was further doubts on Greece, but the the pain by extending the maturity of threatening to blow up between the euro nonetheless gained 0.9 per their loans to Athens, a stance firmly European Commission and the ECB. cent against sterling, 0.75 per cent opposed by the ECB itself. If Germany is backing down on the against the Swiss franc, and 0.6 per “While the EU finance ministers bailout that does diffuse that situa- cent against the greenback by and the ECB were broadly always tion for a while.” But he added: KŝůΘ'ĂƐh<ƌĞĂŬĨĂƐƚƌŝĞĮŶŐ evening. against any form of soft restructur- “What seems to happen with these The markets even brushed off ing, the real sticking point was the bailouts is that each one has a small- Greek retail sales data showing a German… push for an early resched- er impact on markets than the pre- ZŝƐŬDŝƟŐĂƟŽŶĂŶĚ/ŶƐƵƌĂŶĐĞ 17.5 per cent year-on-year plunge in uling of Greek bonds,” said analysts vious one.” ƉŽƐƚͲDĂĐŽŶĚŽ consumer spending in March, even at BNP Paribas in a note. MARKETS: P18; BELARUS: P19 FAST FACTS | WHAT ARE GREECE’S OPTIONS? tĞĚŶĞƐĚĂLJϭϱ:ƵŶĞϮϬϭϭͮϴ͘ϬϬĂŵͲϭϬ͘ϬϬĂŵ Herbert Smith, Exchange House, Primrose Street, London, EC2A 2HS ● A SECOND BAILOUT ● “REPROFILING”/“SOFT RESTRUCTURING” Greece’s debt via cutting coupon rates and Seems to be the most likely near-term option. It The lightest form of burden-sharing, this would extending maturities. Economists think this will would probably consist of an extension in the involve creditors agreeing to extend the maturi- have to happen; the question is when. It is just over a year since the Deepwater Horizon incident in the Gulf of Mexico maturity, cutting the interest and possibly ty of all Greece’s debts. However, the ECB, one increasing the size of the bilateral emergency major creditor, is fiercely opposed to granting ● HARD RESTRUCTURING/EURO EXIT ĂŶĚƚŚĞKŝů^ƉŝůůWƌĞǀĞŶƟŽŶĂŶĚZĞƐƉŽŶƐĞĚǀŝƐŽƌLJ'ƌŽƵƉ;K^WZ'ͿƚŚĂƚǁĂƐ loans that made up Greece’s first €110bn relief without evidence that Greece has at least The EU/ECB are strictly against this “Doomsday ƐĞƚƵƉƚŽƚĂĐŬůĞƚŚĞƌĞůĂƚĞĚŝƐƐƵĞƐŝŶƚŚĞh<ŚĂƐŶŽƚďĞĞŶƌĞƐƟŶŐŽŶŝƚƐůĂƵƌĞůƐ͘ bailout, but without extending this to Greece’s met some of the conditions of its first bailout. scenario”. It could impose haircuts of 75 per The group, which comprises the industry, regulators and trade unions, has other debts. It is likely to come with harsh con- Ratings agencies have also said that the move cent on Greece’s creditors, which include the EU taken major strides in ensuring that the regulatory regime under which the UK ditions attached such as an extension of state would constitute a “selective default”. and major international banks. ECB board ŽīƐŚŽƌĞŽŝůĂŶĚŐĂƐŝŶĚƵƐƚƌLJŽƉĞƌĂƚĞƐƌĞŵĂŝŶƐƌŽďƵƐƚĂŶĚĮƚͲĨŽƌͲƉƵƌƉŽƐĞ͘ asset sales and more spending cuts. Even if member Juergen Stark says it would be “worse Greece were capable of delivering on this, most ● BROADER VOLUNTARY RESTRUCTURING than Lehman”. But others argue it would be KŶĞ ŽĨ K^WZ'͛Ɛ ƉƌŝŽƌŝƟĞƐ ŝƐ ƚŽ ĂƐƐĞƐƐ ƚŚĞ ƉŽƚĞŶƟĂů ƌĞŵĞĚŝĂƟŽŶ ĂŶĚ economists see it only as a stop-gap measure. This could equate to a 50 per cent haircut on better for Greece in the long run. ĐŽŵƉĞŶƐĂƟŽŶĐŽƐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚĂůĂƌŐĞŽŝůƐƉŝůůŝŶƚŚĞh<^ĂŶĚĚĞƚĞƌŵŝŶĞ how these are provided for and whether the provisions the UK has in place ƌĞƋƵŝƌĞŝŵƉƌŽǀŝŶŐ͘ CITY VIEWS: SHOULD GREECE BE FORCED TO LEAVE THE EURO? ƩĞŶĚKŝůΘ'ĂƐh<͛ƐďƌĞĂŬĨĂƐƚďƌŝĞĮŶŐƚŽŚĞĂƌƚŚĞůĂƚĞƐƚƵƉĚĂƚĞŽŶK^WZ'͛Ɛ Interviews by Shiba Babamiri and Scarlett Archer ǁŽƌŬĨƌŽŵ:ŝŵ,ŽƵƐĞ͕ƚŚĞŐƌŽƵƉ͛ƐĐŚĂŝƌŵĂŶĂŶĚƌĞŐŝŽŶĂůǀŝĐĞƉƌĞƐŝĚĞŶƚĂŶĚ ŵĂŶĂŐŝŶŐĚŝƌĞĐƚŽƌĂƚƉĂĐŚĞEŽƌƚŚ^ĞĂ>ƚĚ͘zŽƵĐĂŶĂůƐŽŚĞĂƌƚŚĞǀŝĞǁƐŽĨWĂƵů JOHNNY CHAM | JUISEPPE D’ANGELO | TREVOR BROWN | <ŝŶŐ͕ĚŝƌĞĐƚŽƌŽĨ/E^ŽŶƐƵůƟŶŐ>ŝŵŝƚĞĚ͕ŽŶŚŽǁƚŚĞŝŶƐƵƌĂŶĐĞŵĂƌŬĞƚŚĂƐ COFUNDS AEGIS KENNEDYS SOLICITORS ƌĞĂĐƚĞĚƚŽƚŚŝƐŝŶĐŝĚĞŶƚĂŶĚŝƚƐƉƌĞĚŝĐƟŽŶƐĨŽƌƚŚĞĨƵƚƵƌĞ͘

ƩĞŶĚĞĞƐ ǁŝůů ŚĂǀĞ ƚŚĞ ŽƉƉŽƌƚƵŶŝƚLJ ƚŽ ƋƵĞƐƟŽŶ ƚŚĞ ƐƉĞĂŬĞƌƐ ĂŶĚ WĂƵů “No Greece shouldn’t be made “I think keep them in as no one “No, I think as many countries LJŵŽŶĚ͕ŽƉĞƌĂƟŽŶƐĚŝƌĞĐƚŽƌĂƚKŝůΘ'ĂƐh<ǁŚŽǁŝůůũŽŝŶƚŚĞƉĂŶĞů͘ to leave the euro. These should be made to leave the as possible things work euro because should join ŽŽŬLJŽƵƌƉůĂĐĞŶŽǁĂƚ in cycles, if of their cur- the Europe rent econom- Eurozone; I ǁǁǁ͘ŽŝůĂŶĚŐĂƐƵŬ͘ĐŽ͘ƵŬͬĞǀĞŶƚƐ helps them ic state. As think even Listen to experts from industry | Network | Learn | Debate | Enjoy out now part of the UK then it’s Europe, we should join possible should be the euro as sponsored by and they would helping them it would contribute and not go make it a to help us in against stronger the future.” them.” economy.” Placing you first

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Tesco chief executive Philip Clarke (left) and the firm’s US boss Tim Mason have seen an overhaul of thir pay structure Tesco revamps exec pay after rebellion

▲ RETAIL no longer be eligible for awards The debate over boardroom pay BY JOHN DUNNE under the US annual or long-term has been reignited this week with a incentive programmes. survey showing that chief execu- TESCO has moved to head off a “Mr Mason will therefore no tives of blue-chip companies repeat of last year’s shareholder longer participate in the US LTIP enjoyed a median pay rise of 32 per revolt by overhauling its executive [long-term incentive plan] and the cent last year. pay structure. 2m shares granted to him in 2007 That compared with a seven per The shake-up, revealed in Tesco’s will lapse.” cent rise in the FTSE 100, and a two annual report, sees the scrapping of Despite the shake-up chief execu- per cent increase in general work- an incentive scheme which benefit- tive Philip Clarke, who started his ers’ pay, according to pay consultan- ed US boss Tim Mason. job in March, can earn an annual cy MM&K and corporate His £4.2m in pay and bonuses long-term bonus of up to 275 per governance group Manifest. was blasted by US institutional cent of his £1.1m salary, with a fur- Tesco’s AGM is on 1 July. investors at last year’s AGM after ther 250 per cent through a short Tesco’s US start-up, Fresh & Easy, term bonus. ANALYSIS l Tesco struggled. He can be awarded an even high- 430 p 419.05 Last year 47 per cent of sharehold- er figure in “exceptional circum- 31 May ers either voted against or abstained stances” according to the 420 in a vote over executive pay. document. The annual report 410 The retailer’s latest annual report revealed that former chief execu- said: “In light of the renewed focus tive Sir Terry Leahy received £4.2m 400 on a collegiate approach to remu- in the year to February, down from 390 neration, together with Mr Mason’s £5.2m the previous year. appointment to the roles of deputy This included a cash and share 380 CEO and chief marketing officer, it bonus of about £2.7m and base 370 has been agreed that Mr Mason will salary of £1.4m. 28 Feb 18 Mar 7 Apr 12 May 23 May CITYA.M. 1 JUNE 2011 Consumer News 11 INTEL UNVEILS ULTRA-THIN NOTEBOOK Peppa Pig INTEL yesterday invented a category of ultra-thin, affordable notebooks. They will be powered by its sec- toys to hit ond generation Sandy Bridge and Ivy Bridge processors, as the firm looks to take on Apple chipmaker US shelves ARM in the portable com- puting stakes. Intel plans to price the devices – which it is calling ▲ RETAIL the Ultrabook – at under BY JOHN DUNNE $1,000 (£600). The first units will be hitting the shelves in ENTERTAINMENT One (ETO) has time for Christmas. Intel’s signed a deal with Fisher Price to new president of China, develop a toy line based on the Peppa Sean Moloney, unveiled the Pig animated children’s TV series to new gadget which looks sim- sell in the US. ilar to the Macbook Air and ETO, which owns the distribution is only 0.8 inches thick. Intel rights for the show in the US, said it is also promising a longer hoped to replicate the success of battery life than some Peppa Pig toys in the UK, which gen- rivals. The company predicts erated more than £200m in sales last that 40 per cent of consumer year. laptops sold worldwide by Chief exective Daniel Throop the end of 2012 will be said: “This is a great opportunity Ultrabooks. built on the success of the character in the US, where it is on a major net- Picture: GETTY work. “There is the chance in the US to develop the brand.” Haymarket goes NEWS | IN BRIEF Krispy Kreme UK sales on the rise and “despite an increasingly competitive envi- Doughnut maker Krispy Kreme saw UK sales ronment the group has maintained stable of £33.4m over the past 12 months, it said profitability and is looking at further expan- yesterday. Like-for-like figures showed a sion of the local offering,” it said. The compa- behind a paywall same-store sales increase of 1.4 per cent. ny also said that it has satisfied all contractual Revenue was up 12.6 per cent. The company requirements from the disposal of its said it plans to double its presence in the UK Australian operation, following which it has in the next five years. Over the past 12 received the third payment of A$500,000 ▲ PUBLISHING Any online subscriber will get months, Krispy Kreme has opened six new (£325,000). access to all of Haymarket’s specialist stores as well as 50 cabinets in Tesco. The PUBLISHER Haymarket yesterday media titles, which are already company said it planned to open 10 new Eros in Bollywood boost revealed plans to put up a paywall to grouped together under the name stores in the coming year and for the four Indian movie distributor Eros International charge for its online magazines. Brand Republic. years following. It served more than 5m cus- said its full-year profit rose, boosted by the box Haymarket, owned by Lord Haymarket remains “committed” to tomers and produced over 50m doughnuts office success of Bollywood films “Dabangg” Heseltine, is following a similar print, it insisted yesterday. Heseltine’s over the year. (Dauntless) and “Housefull”. The company, model to the Financial Times’s firm has sold or closed several print which recently listed its unit Eros International “metered model” as registered titles, including Media Week, which Asia Digital in new clients boost Media on the Bombay Stock Exchange in India, users get free access to a set number of went online only in 2009. Cash flow has been better than anticipated in also gave a positive outlook for the year ahead. articles per month before having Other groups have been introduc- the first two quarters of the year, according Eros boasts of a strong slate of movies that to pay. ing pay walls and closing print to online marketing group Asia Digital. The include “Rockstar”, with actor Ranbir Kapoor. From July, subscribers will be able versions. China-focused company, which also operates Pre-tax profit was up $55.8m (£33.8m) for the to choose online and print together Last month, Incisive Media’s in southeast Asia and India, said it has seen a year ended 31 March, compared with last (£199+VAT a year), online only (£155) Accountancy Age and TechTarget’s healthy pipeline of new business. Things have year’s $49.5m. Revenue rose 10 per cent to or print only (£155 per title). Computer Weekly went online only. improved steadily in Singapore and in India, $164.6m. 12 News CITYA.M. 1 JUNE 2011 New chairman Leighton signals Brewin Dolphin change of Pace buys Irish fund Allan Leighton will launch a strategic review Picture: Micha Theiner/CITY A.M. ▲ TECHNOLOGY ANALYST VIEWS: IS THE APPOINTMENT OF ALLAN ALLAN Leighton, who was confirmed manager Tilman as the successor to Mike McTighe at LEIGHTON POSITIVE FOR PACE? Interviews by Elizabeth Fournier the struggling TV set-top box maker Pace yesterday, is planning to launch a strategic review of the Yorkshire-based IAN ROBERTSON | SEYMOUR PIERCE ▲ FUND MANAGEMENT have only made this opportunity company. BY HARRY BANKS greater with many clients moving Leighton, who has led the boards of from banks and other institutions the Post Office and supermarket chain Allan Leighton has an impressive track record. That said, we are concerned INVESTMENT manager Brewin which were dominant in our field,” ASDA, said: “I’ve watched the Pace as to whether he will have enough time given his extensive other commitment. We Dolphin is buying Irish fund manager Brewin said. business develop with both its ups and hope he doesn't enter the company under the impression that the most impor- Tilman Asset Management for €20.8m The acquisition is expected to be “tant thing is technology ... The key factor is delivering the product on time. bumps for 15 years. (£18.2m) in a deal aimed at tapping ris- “broadly” earnings neutral in the first “I’ve always felt there is a ‘great tech- ing demand for private wealth man- year, with “significant synergies” seen nology company’ in there. My task VIJAY ANAND | ESPÍRITO SANTO ” agement advice in Ireland. after 2014 following the integration of now with the management and the Brewin Dolphin, which runs the two firms. board is to deliver that ‘great technolo- around £25bn of assets on behalf of The appointment of Allan Leighton as the new non-executive chairman gy company’ and the value that goes 130,000 private clients, will issue ANALYSIS l Brewin Dolphin Holdings with it without the bumps.” is a positive step, in our view. Given the recent disappointing updates along with shares to finance the takeover, which Pace’s poor investor communication, a change of leadership is welcome. 185 Markets reacted well to Leighton’s reflects a price to earnings ratio of 11.5 p 166.30 appointment yesterday, with Pace’s “ times Tilman’s profits to 31 March. 31 May shares closing 2.5 per cent higher at It has also agreed to pay an addition- € 117.8p. JONATHAN IMLAH | COLLINS STEWART al sum of up to 15m worth of Brewin 175 Shares in the group fell 40 per cent ” shares based on Tilman’s performance in a single day earlier this month, after to September 2014. it said profits would be hit by a poor Leighton has a wealth of experience in executive and non-executive “It has been the board’s long held performance in Europe and higher roles. The appointment comes after a ‘thorough and exhaustive search’, sug- view that there is a strong demand in 165 supply chain costs due to Japan’s gesting that the process has been underway for some time and is Ireland for the services that Brewin earthquake. “therefore unconnected with the recent profit warning. ” can offer. Recent events in Ireland 9 Mar 29 Mar 18 Apr 12 May @ www.cityam.com @ @ visit our motorexpo stand for a test drive.*

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For more information call 01270 535032† or visit www.bentleymotors.com The name ‘Bentley’ and the ‘B’ in wings device are registered trademarks. © 2011 Bentley Motors Limited. Model shown: Bentley Continental GT, mrrp £135,760. Price correct at time of going to press and includes VAT at 20%. Price excludes road fund licence, registration and delivery charges. †Calls will be recorded for training purposes. *Subject to availability. 14 EDITED BY CITYA.M. 1 JUNE 2011 HARRIET DENNYS Got A Story? Email [email protected] The Capitalist Follow The Capitalist on Twitter: @citycapitalist

This year’s PRINCE TO Ark gala for ADDRESS 900 guests will be held ARK GALA’S on 9 June at Perks Field in 900 GUESTS the grounds DETAILS of this year’s Ark dinner, the On top of the world: Tait at the summit . annual hedge fund extravaganza attend- of Kensington ed by the biggest names from the City, the 7,800 metres. Unsurprisingly, the UBS arts and politics, have been harder to Palace head of macro-directional trading has obtain than a banker’s super injunction. “yet to feel elation”. “It was an ordeal But The Capitalist can now reveal that from beginning to end,” he said. the celebrity-filled affair will take place next Thursday 9 June at Perks Field near Kensington Palace, conveniently located DRINKS CABINET for the gala’s guests of honour: the newly Actress Uma Thurman and Arki Busson at last year’s Ark gala Picture: Micha Theiner/CITY A.M. TAIT will return to his desk in the City on wed Duke and Duchess of Cambridge. 6 June, when he will do some last-minute Prince William (pictured right with to be announced on the night. of UBS banker David Tait, who has come canvassing to supplement the £130,000 Kate) will give the keynote speech after The founders of Ark – short for Absolute back alive from his fourth ascent of raised so far for the Child’s i dinner to the 900 guests, and the sponsors Return for Kids – will be hoping to top the Everest despite a “dance with death” on Foundation, the abandoned children’s of the gala – now in its tenth year – are £14m raised by last year’s party for the the Khumbu icefall. charity of which he is chairman. Bloomberg, BlueCrest, Marshall Wace and global charity, which has projects run- “It was the closest I have ever come to Next on the fundraising agenda is a Espirito Santo Investment Bank. ning in Romania, Zimbabwe and Zambia dying,” said Tait of the moment when a Berry Brothers wine tasting evening So expect to see Espirito Santo’s co-chief alongside the UK programme to found huge body of ice collapsed and sent on 22 June, where the guest list executive Nick Finegold dressed in his fin- schools for disadvantaged children. shockwaves through the ground, leav- includes Glenn Earle, chief operating ery, as well as Ark’s socialite founding Eight Ark academies have opened in ing the climbers clinging onto a rope officer of Goldman Sachs and hedge chairman Arki Busson and Marshall Wace the UK so far – including the Globe to avoid falling into the abyss. fund bosses Louis Bacon of Moore co-founders Ian Wace and Paul Marshall. Academy in Southwark, visited by David Following the near-death encounter, Capital, Mike Platt of BlueCrest and As for the entertainment, Marshall’s Cameron with President Obama on last Tait reached the summit in the early Stanley Fink, the former CEO of Man son Winston, vocalist and banjo player in week’s state visit – and four more will be hours of 20 May and is now back at Group and founder of International folk rock band Mumford & Sons, will not up and running by September 2012. home in Surrey, where he is sleeping as Standard Asset Management. be performing, but Mark Ronson – though he has been “anaesthetised” to Throw in media baron Richard nephew of property tycoon Gerald recover from badly frostbitten cheeks Desmond and you have the makings of a Ronson – has been booked, as has an DANCE WITH DEATH and Raynaud’s disease in his right hand, high-octane affair. “We are a new charity, “internationally recognised rock band”, NO MORE sleepless nights for the family after his fingers “turned to wood” at so we need to spread the word,” said Tait.

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H2O Markets Limited is authorised and regulated by the Financial Services Authority. Registration number 511520. CITYA.M. 1 JUNE 2011 News 15 Ronson project Tullow plans makes first deal public share ▲ PROPERTY LONDON property tycoon Gerald Ronson’s new investment vehicle completed its maiden purchase yes- terday. Ronson Capital Partners (RCP), “a sale in Ghana club of like-minded partners” drawn mostly from the UK and the Middle East, has spent £63m on International House on Chiltern ▲ ENERGY ration blocks off the Ghanaian Street, Marylebone. BY MARION DAKERS shore, and operates the Jubilee field RCP aims to demolish the 12-storey that lies across the blocks. tower once the existing tenants’ TULLOW OIL yesterday laid out plans The president of Ghana attended lease deals expire in 2014, before to float 4m shares in Ghana, where the first oil celebration in December, building a residential block on the last year it was instrumental in pro- and production is expected to hit site. ducing the country’s first 120,000 barrels per day next International House was previous- oil. month. ly owned by Targetfollow, the one- Tullow said it Last week, Tullow Chief executive Kevin Appleton stands down at the end of the month Picture: Lavendon time owner of Centrepoint and the hopes to demon- splashed out £186m to Can of Ham site whose subsidiaries strate its commit- buy EO Group, a fell into administration late last year. ment to Ghana by minority partner in “Ronson Capital Partners is allowing the the Jubilee field Lavendon chief to leave pleased to have completed on our public to buy the that was struggling maiden investment. We are confi- shares, which to meet its operat- dent that RCP will become a signifi- would be worth ing costs. cant name in the property sector as £53.9m at yester- The company will ▲ INDUSTRIAL Appleton will leave by mutual well as a club of which many will day’s London join a string of com- agreement at the end of the month, wish they were members,” said chief price of £13.47. modities firms on PLATFORM hire company Lavendon and is thought to be looking for executive Jonathan Goldstein, who The firm will the Ghana Stock has begun the hunt for a new chief another role in the industry. also acts as deputy chief for Ronson’s price the offering on Exchange (see table executive following Kevin Appleton’s Chairman John Standen and other development firm Heron 13 June, and is expected below), including branch- departure after nine years at the firm. directors will fill in while head- International. to list the shares towards es of Total, AngloGold Ashanti Lavendon recently completed a hunters find a replacement chief. Ronson himself is thought to have the end of the month. and state-run Ghana Oil Company. business review following takeover Some analysts were surprised by invested a significant sum of his own “We would like everyone in Ghana Tullow shares closed up 1.4 per offers, which the firm said brought the timing of his departure. “While money in RCP, with his property to have the opportunity to invest in cent at 1,347p yesterday. up questions of succession. trading remains in line there is pre- developer Heron also injecting equity. the future performance of Tullow, The firm’s shares were sent tum- sumably much to do in delivering the Investec provided a senior debt especially as we embark upon fur- bling in January after Ashtead and improvements identified for the and equity package for the purchase, ANALYSIS l Tullow Oil ther exciting exploration and devel- TVH Services walked away from a growth plans outlined to take and said it will continue to support 1,500 1,347.00 opment activities in Ghana and p 31 May takeover pursuit, after Lavendon Lavendon forwards,” said Panmure the venture “in this tough funding across our global portfolio,” said 1,450 rejected their advances. Gordon in a note. environment”. chief executive Aidan Heavey. Ghanaian bank IC Securities is act- 1,400 ing as lead broker on the offering, with Standard Chartered and 1,350 NEWS | IN BRIEF Agricultural Development Bank also Losses mount selling shares through their branch- 1,300 es in the country. VW makes formal offer for MAN pounds and the successful $1m (£608m) 1,250 Tullow has interests in two explo- 28 Feb 18 Mar 7 Apr 12 May 23 May at Chariot Oil German carmaker Volkswagen (VW) for- disposal of a non-core diagnostic sub- mally launched its bid for MAN yesterday, in sidiary. SOME OF THE COMPANIES LISTED IN GHANA a move toward creating Europe’s biggest truckmaker. VW aims to raise its stake in Renold reports a profit increase Company Market cap First listed ▲ ENERGY MAN to 35-40 per cent of voting rights Renold, the world’s second-largest suppli- from just over 30 per cent now, just enough er of industrial chains, yesterday report- Total Ghana £97.6m July 1991 AIM-LISTED exploration group to get regulatory approval for closer coop- ed revenue of £191m for the year to the Guinness Ghana £85m August 1991 Chariot Oil & Gas more than doubled eration between MAN and Scania without end of March, up from £156.1m in the its losses last year, but said it was con- buying the whole company. VW made a previous year. Operating profit was £7m, Unilever £182.4m August 1991 fident of becoming the first firm to deliberately low offer of €95 (£83) per with net operating profit of £4.3m, com- drill in Namibia later this year. share for MAN yesterday, 1.8 per cent pared to a loss of £4.8m the prior year. Standard Chartered Bank £493.6m August 1991 Chief executive Paul Welch said the below the current market value of €96.69 Adjusted earnings per share were 2p. company was “in control of its des- per share. PZ Cussons £15.7m August 1991 tiny” as it posted a loss of $7.3m Upbeat forecast for Voestalpine Societe Generale £71.3m October 1995 (£4.4m) for the year to March, due in ValiRx sees revenues rise Austrian steel group Voestalpine yesterday part to soaring staffing costs. ValiRx, the life science company with a predicted strong earnings after Asian Ghana Commercial Bank £320.5m May 1996 Exploration costs sank from $17.6m focus on cancer diagnostics and thera- demand for luxury cars and orders for its to $4m during the year, but this is peutics for personalised medicine, has products from the energy industry helped it AngloGold Ashanti £5,215m April 2004 expected to rise as work on Chariot’s seen revenue for the year increased to beat full-year profit forecasts. The maker of 16 prospects in Namibia gets under- £177,297, up from £29,326 in 2009, in its steel used in cars, railways and pipelines TOTAL WORTH OF GHANAIAN FIRMS LISTED £8,169m NOVEMBER 1990 way. final results. The company pointed to said yesterday it was operating at full Chariot shares closed down 0.3 per solid progress with pre-clinical pro- capacity and net sales were close to levels NB All figures converted from Ghanaian Cedi (1 cedi = 40.3p) Source: Ghana Stock Exchange website cent at 225.25p. grammes of leading therapeutic com- last seen before the economic downturn.

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Photography: Simon Procter Attire: Vivienne Westwood Millinery: Stephen Jones 16 News CITYA.M. 1 JUNE 2011 Playstation pays price for gamers’ privacy loss

threats emerging across the digital announcement of the hack. Between Xbox at 16 points). platform which has improved their landscape. The hacking of personal 21 April and 6 May, Playstation’s buzz Such a dramatic impact on brand perception – just not enough to data is a concern for anyone wielding rating fell by some 34 points. This Playstation illustrates just how sensi- get them back to the level of their com- their online purchasing power, includ- impact was felt across other tive the consumer can be to the securi- petitors. ing those fighting their own virtual BrandIndex indicators, for example the ty of their data. Sony has taken Stephan Shakespeare is chief executive of battle – online gamers. Impression score of the brand fell from measures to beef up the security of the YouGov. The recent attacks on the Playstation 20 points to eight in the same period. ANALYSIS l Buzz: April – May 2011 ANALYSIS l Impression BRANDINDEX Network impacted over 100m users in Just two months ago, Playstation the last month alone. Sony has estimat- and Xbox were fighting neck and neck 35.0 40.0 STEPHAN SHAKESPEARE ed the costs arising from their security for second place position in Impression breach at approximately $173m scores. On 28 February, just one point 15.0 30.0 NLINE privacy has left few sur- (£105m). The long term damage on the divided the two brands (PS3 at 20 0 vivors in recent weeks. Dictators Playstation brand however is still play- points, Xbox at 21 points with 20.0 and celebrities were not the only ing out on the BrandIndex trackers. Nintendo at 40 points). -15.0 Nintendo 10.0 Nintendo ones left cowering in the shadow Playstation’s apology package on 17 Following the online security scare, PS3 PS3 O Xbox 360 Xbox 360 of Twitter. Online consumers were also May did little to stem damage in con- Playstation has seen that gap widen by -35.0 0 shown to be vulnerable to the new sumer “Impression” following the 13 points, (PS3 at seven points and 1 Apr 15 Apr 29 Apr 13 May 27 May 1 Apr 15 Apr 29 Apr 13 May 27 May Buyout group pays €2.1bn for PAI’s Spie

▲ M&A BY HARRY BANKS latest in a series of European LBOs bolstered by the recovery of financing A GROUP led by Clayton Dubilier & markets after the 2008 financial cri- Rice (CD&R) has agreed to buy sis. French engineering group Spie Other recent deals include CVC in a deal valuing it at €2.1bn Partners’ purchase of a majority (£1.8bn), in the biggest French stake in French rail equipment leveraged buyout (LBO) since Delachaux and the purchase of the 2008 financial crisis. upscale shoemaker Jimmy Choo French private equity group by luxury goods group Labelux. PAI Partners, which said in Spie said in a statement the CD&R March it was considering deal was one of several indi- a possible sale of the cations of interest it electrical and mechani- received and would be cal engineering firm, positive for the compa- confirmed a deal to sell ny’s prospects, because of it to a group also an employee share owner- including a unit of ship scheme that would French insurer AXA link pay to performance. and Canada’s Caisse des The new owners plan to Depots du Quebec. take the company public in More than half the about three years after deal’s value, or €1.3bn, planned bolt-on acquisi- was financed by debt, tions in northern Europe, sources said. CD&R pro- said a person familiar with Team Up, Get Cooking, vided about €400m of the matter. equity. Spie chief executive The deal is the Gauthier Louette (pic- Build Better Lives biggest of a recent string tured) said in March he of private equity invest- favoured an IPO for the com- ments in France and is the pany in the long run. For all who enjoy cooking, novice to talented, Big City Cook is the ideal challenge Chemical maker Heats kick off 11th September 2011 ththelordmayorsappeal.org.uk/cookelordmayorsappeal.org.uk/cook Ashland buys ISP 020 7520 0425

Enter your trio ▲ INDUSTRIALS Ashland also makes chemicals and materials for the packaging and water of chefs now! SPECIALTY chemicals maker Ashland purification industries. has struck a deal to buy privately held In buying New Jersey-based ISP, Kindly sponsored by International Specialty Products for Ashland is betting that consumer $3.2bn (£1.9bn) as part of a plan to bol- demand for pharmaceuticals, skin Official Media Partner ster its strong roster of products for creams, hair gels and cosmetics will the skin care, drug and energy sectors. only continue to grow. Ashland, along with larger rivals The deal is a windfall for the family Dow Chemical and BASF, has long of Samuel Heyman, a hedge fund focused on the specialty chemical sec- manager who spun off International The Thomas CoramCoram FoundationFoundation foforfor Children (registered charitycharity no.no. 312278) waswas establishedestablished byby RoyalRoyal CharCharterter in 1739. RedR UK is registered charitycharity no.no. 1079752. tor, which offers high margins and Special Products from roofing manu- tends to be resilient during recessions. facturer GAF Materials in the 1990s. CITYA.M. 1 JUNE 2011 Economics 17

CHINESE DROUGHTS FORCE UP FOOD PRICES NEWS | IN BRIEF

German unemployment declines House prices Unemployment in Germany has dropped every month for almost two years, it emerged yesterday. The jobless rate declined to seven per cent this month, the lowest rate since records began in 1991. However, the rate of decline was in London hit slower than expected by many econo- mists, down by just eight thousand on the month. Canadian Bank sounds hawkish Canadian interest rates were held at one a 3-year high per cent yesterday, yet a notably hawk- ish statement from the central bank drove the Canadian dollar and short- ▲ HOUSING Prices in London will rise two per term bond yields higher as traders BY JULIAN HARRIS cent per annum faster than in the increased bets on rate hikes later this rest of the UK, a separate report from year. The comments suggest that tight- HOUSE prices in London have the Centre for Economic and ening is not immediately on the cards, jumped to their highest level since Business Research claimed yesterday. but should be expected later in the year. January 2008, figures from the Land The average house price across the Registry revealed yesterday. country stands at £163,083, accord- Swiss GDP growth disappoints The average home in the capital ing to the Land Registry data. The Swiss economy grew slower than cost £352,187 in April, up three per In the north east prices are down expected in the first-quarter, hit by cent from the previous month. 8.1 per cent from April 2010, the lower investment and consumption, Prices were up by 0.8 per cent sharpest dip out of all the UK’s although exports proved robust in the across the UK, yet remained 1.3 per regions. An average home in the face of a strong Swiss franc. Growth cent below the same time last year. north east now costs £103,295, came in at 0.3 on the previous quarter, “London is defying the dip in according to the data. an annual expansion of 2.4 per cent. house prices elsewhere in the UK,” The number of UK houses sold in said Peter Rollings of estate agent February of this year dropped by 10 India’s boom records slowdown Marsh and Parsons. per cent compared to a year ago, the India’s economy grew by a slower-than- DROUGHTS in China have placed even greater upward pressure on food prices, provoking a “Prices in London have gone up by Land Registry said. expected 7.8 per cent in the March quar- dilemma for the Chinese authorities, as they seek to control inflation. Pork prices have five per cent this year and with limit- However, the number of proper- ter from a year earlier, government data jumped in particular, further inflated by strong demand from May’s holidays. Food prices ed supply and huge demand, we ties sold for over £1m increased from revealed yesterday. Economists had account for about a third of China's consumer price index. Slower economic growth is set to believe this trend will continue,” 399 in February 2010 to 454 this expected expansion of more than eight test the central bank’s appetite for monetary tightening. Picture: REUTERS Rollings added. February, a 14 per cent rise. per cent. Ireland set for Japanese industry Inflation goes up in OECD one more year yet slows across Eurozone of recession starts to fight back ▲ EUROZONE ECONOMY “We suspect that the decline was ▲ IRELAND ECONOMY ▲ JAPAN ECONOMY INFLATION has hit a 30-month high largely down to lower energy prices Nonetheless, industrial output across member states of the and the unwinding of the ‘late Easter IRELAND will emerge from recession JAPAN’S industry fought back in April sprung back by rising one per cent in Organisation for Economic Co-opera- effect’ – which led to a surge in infla- in 2012, after four straight years of after the devastating earthquake and April, after March’s record fall, official tion and Development (OECD), the tion in the leisure and entertainment economic contraction, a report from tsunami the previous month, several data showed -- a sign that companies group revealed yesterday, despite a sector last month,” commented ING’s Ernst and Young claimed yesterday. data releases have shown. are mending broken supply chains. slight easing of prices in the Eurozone. Martin van Vliet. The Republic’s economy will shrink Industrial output and manufactur- Meanwhile, a purchasing managers’ Consumer price inflation edged up “Eurozone headline inflation is set by 2.3 per cent this year, worse than ing activity have recovered from index for the factory sector returned to 2.9 per cent for the OECD in April, to stay well above two per cent in the previous forecasts, the report said. record losses in March, yet Japan still to growth for April, measuring 51.3, from 2.7 per cent in March, reaching remainder of this year, as energy and The recovery is expected to begin faces an upward climb, with unem- from 45.7 in April. its highest level since October 2008. food prices continue to have an with 1.1 per cent growth next year ployment rising to 4.7 per cent last Household spending was three per The figure is extremely close to the upward impact on consumer prices.” and 2.2 per cent growth in 2013. month – high by Japanese standards. cent down compared to April last year, 2.8 per cent reading for Eurozone Meanwhile, the unemployment rate While exports from Ireland contin- Car production collapsed by 60 per but the pace of decline slowed marked- inflation in the same month. Yet a across the Euro area held stubbornly ue to boom in response to global cent last month, data from the ly from March’s record 8.5 per cent “flash” estimate of Eurozone prices in at 9.9 per cent in April, separate data demand, domestic activity remains Japanese car manufacturers’ associa- record annualised fall. May showed a small reduction in the showed. Spanish unemployment fig- weak, the report noted. tion revealed yesterday. BORIS SCHLOSSBERG: P19 rate, to 2.7 per cent. ures are expected this week.        #2"%11 "&)!'*  %02#'!3120#'#0(($1 "#$2"''#40106 # &! # !%)  # &! # &#$&'  !&'#" '%' *!" #(%'  &#$&' #"#"   #"#"  &        

555(#1%(3$ * ( ' '# ) ! ! '+ 18 News CITYA.M. 1 JUNE 2011

CITY MOVES | WHO’S SWITCHING JOBS Edited by Harriet Dennys in association with

September from Grosvenor, where she ing Germany, based in Frankfurt. Prior and environment consultancy WSP. Wainbridge is retail investment director on to joining BNP Paribas, Murke was a The property investment and asset manage- Grosvenor’s London estate. managing director at Credit Suisse. Simmons & Simmons ment firm has appointed Graham Langlay- The law firm has expanded its financial Smith as chief financial officer. Langlay-Smith BMO Betfair markets practice by hiring a five-part- joins from Credit Suisse, where he was a direc- BMO Financial Group has appointed The online betting company has ner banking team: John Hayward, tor of the European team of DLJ Real Estate William Smith as managing director appointed Raj Vemulapalli as vice Richard Hughes, Simon Kildahl, Bob Capital Partners. Prior to Credit Suisse, and head of European and Middle East president of mobile engineering. Jones and Mark Waghorn, all previous- Langlay-Smith was chief financial officer of real operations. Smith was formerly head of Vemulapalli joins from Yahoo, where ly at Berwin Leighton Paisner. estate developer TrizecHahn Europe, and has investment and corporate banking, he was head of engineering. also held senior financial control positions at Europe at BMO Capital Markets. Polo Resources Dresdner Kleinwort Benson and HSBC. EC Harris The natural resources investment com- BNP Paribas The built asset consultancy has pany has appointed Ian Michael Burns to Torsten Murke will join BNP Paribas appointed Isabel Boira-Segarra to lead the board as finance director. Burns is Capco director of the company’s Covent corporate and investment banking on 1 the European Renewables team. Prior the founder and senior executive director Capital & Counties Properties (Capco) Garden retail and residential develop- October as deputy country head for to joining EC Harris, Boira-Segarra was of Via Executive and the managing direc- has appointed Sarah-Jane Curtis as ment. Curtis will join the company in Germany and head of investment bank- a renewable services director at energy tor of Regent Mercantile Holdings.

To appear in CITYMOVES please email your career +44 (0)20 7557 7245 updates and pictures to [email protected] SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com

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ANALYSIS l Ericsson ANALYSIS l Tate & Lyle ANALYSIS l GlaxoSmithKline 100 91.30 1,320.00 sek 630 620.50 1,350 31 May p 31 May p 31 May

620 90 1,330

610 1,310 80 600 1,290 70 3 May 10 May 17 May 24 May 3 May 10 May 17 May 24 May 18 Mar 7 Apr 27 Apr 17 May ERICSSON TATE & LYLE GLAXOSMITHKLINE UBS rates the telecommunications company a “buy” and has a 12-month Morgan Stanley rates the food producer “overweight” with a target price Goldman Sachs has downgraded the pharmaceutical company from “neu- target price of $16.04 (£9.72), up from $15.24. The broker has raised its of 630p following full-year results. The broker sees potential for the compa- tral” to “sell” and has lowered its target price by 130p to 1,110p as it earnings forecasts by four to six per cent for 2012 onwards and has raised ny as it progresses away from bulk ingredients activities towards specialty expects the stock to revert to the mean for the sector. The broker has cut its capital expenditure forecasts to around four per cent a year on the back food ingredients, and now predicts sales growth of five per cent. But the its earnings per share forecast to three per cent below consensus, reflect- of new broadband technology. The broker also notes the firm is strongly broker adds that the share price momentum relies on Tate & Lyle delivering ing in part the generic competition for Lovaza, the prescription fish oil cap- positioned to outperform in 2012, following recent contract wins. accelerated growth. sule, and asthma treatment Advair. Banks help FTSE to end May US rallies on hopes on a high but fear still reigns of Greek debt plan

four per cent in the last week, some Matthey found support ahead of shot up 128.21 points, or 1.03 per cent, are concerned that this is quite far results tomorrow, rising 4.6 per cent. to 12,569.79. The Standard & Poor’s 500 THELONDON enough for now,” said Yusuf Heusen, “We expect 2011 to be Johnson THENEW YORK Index gained 14.10 points, or 1.06 per senior sales trader, at IG Index. Matthey's best year so far,” RBS said in cent, to 1,345.20. The Nasdaq REPORT Banks were higher as Europe a note, adding it sees margins in the REPORT Composite Index rose 38.44 points, or stepped up efforts to draft a second second-half of 2011 at 16.2 per cent, up 1.37 per cent, to 2,835.30. bailout package for Greece. about 40 basis points compared to the For May, the Dow lost 1.9 per cent ANKS and energy stocks, buoyed Standard Chartered rose 1.4 per first-half of 2011. ALL St bulls took the upper and the Nasdaq fell 1.3 pe rcent. The by hopes of a second bailout for cent as Nomura upgraded the bank to Broker support helped lift Experian hand with a one per cent S&P fell 1.4 per cent, its worst month Greece, helped Britain’s FTSE “buy”. 3.1 per cent, as Credit Suisse raised its rally yesterday as hopes for a since August, when the US Federal B100 higher yesterday, but traders But Lloyds retreated 1.4 per cent, rating for the credit checking firm to Wnew plan to deal with Reserve announced the second round remained concerned about buying with traders citing concerns over the “outperform” from “neutral”. Greece’s debt crisis relieved some of its quantitative easing programme. momentum in the short-term. bank placing its bonus scheme under Bullish broker comment buoyed investor worry, but grim economic US single-family home prices “Uncertainty for the near term out- review, potentially driving away the motor insurer Admiral Group. The data suggested more hurdles ahead as dropped in March, below their 2009 look still remains bearish until the bank’s top talent. firm’s shares rose 2.1 per cent as the S&P 500 closed out its worth low, according to the S&P/Case-Shiller markets can pick up positive momen- Traders also said there were worries, Collins Stewart repeated its “buy” rat- month since August. composite index of 20 metropolitan tum and clear hurdles to give the bulls sparked by newspaper reports, of a ing following last week’s decision by Stocks rebounded late in the session, areas. A separate report showed an a chance to see higher prices for June,” return to high-risk mortgage lending, the UK regulator against a total ban on nearing levels that were approached at unexpected drop in May consumer Sandy Jadeja, chief technical analyst at raising fears of the potential for anoth- referral fees. the open, but later fell following lack- confidence, while the Institute for City Index said. er credit crunch scenario. Serco rose 3.5 per cent after the lustre data on US Midwestern factory Supply Management-Chicago said busi- The FTSE 100 closed up 51.12 points, The euro climbed to a three-week London-based outsourcer agreed to demand and consumer confidence. ness activity in the US Midwest grew or 0.9 per cent, at 5,989.99, but drifted high against the dollar, as European buy Indian private sector outsourcing European officials were mulling much less than expected in May. away from a session high of 6,009.98. officials met in Vienna to sketch out company Intelenet for up to £385m, options for a second bailout package Tech shares also lifted the market, The index fell 1.3 per cent in May. options for another bailout package. which brokers view as expensive but for Greece, with private-sector partici- with the S&P information technology “Although the first few days of June The weak dollar lifted crude oil strategically significant. pation still under discussion. Germany, index up 1.6 per cent. Cisco Systems look positive it will be the closing prices, which boosted integrated oils, which was resisting extra funding, may was one of the Dow’s top gainers, up prices for the week ahead that may but BG Group fell 0.3 per cent, as ANALYSIS l FTSE 100 drop its push for an early rescheduling 2.1 per cent at $16.80, while Apple provide a clue for the monthly out- Credit Suisse cut its target price for the 6,100 of Greek bonds, the Wall Street Journal climbed 3.1 per cent to $347.83 on the look,” Jadeja said, warning the FTSE firm. 5,989.99 reported. news that Steve Jobs, its chief executive had formed a double top at around Plumbing supplies firm Wolseley 31 May Rising expectations for a package who has spent months on medical 6,100, signalling the potential for fur- climbed 3.4 per cent, ahead of its trad- 6,000 pushed the dollar down against the leave, would open an annual develop- ther declines. ing update today. The company was euro, helping lift commodity prices er’s conference. “Of course, if there’s one lesson we also boosted after the Sunday Times and materials stocks. Crude futures US-listed shares of Nokia slumped have learnt over the past 12 months reported the plumbing supplies firm 5,900 rose 2 per cent while Chevron gained 14.4 per cent to $7.02 after it aban- about the sovereign debt crisis, it is has put three of its UK businesses – 1.6 per cent to $104.91 and Alcoa added doned hope of meeting key targets just that it does have a tendency to rear its Build Center, Electric Center and 2 per cent to $16.81. The S&P energy weeks after setting them. The stock ugly head repeatedly, and with shares Encon – up for sale. 5,800 index added 1.04 per cent. dropped on its heaviest volume since in London bouncing back by around Industrial conglomerate Johnson 10 May 17 May 24 May The Dow Jones industrial average February. 19 Wealth Management | Foreign Exchange DOLLAR-YEN IS FOCUSED ON US Belarus devalues its JOBS NUMBERS BORIS SCHLOSSBERG way to hyperinflation DIRECTOR OF CURRENCY RESEARCH, GFT It is hard for market ESTERDAY, Moody’s threw a bombshell into the currency market by announcing that it could watchers not to draw lower Japan’s Aa2 rating in the coming months. YDollar-yen jumped nearly 100 points as a result comparison with the of the news, rising to a high of ¥81.80. In its note, the ratings agency cited “heightened concern that falter- ing economic growth prospects and a weak policy likely Greek endgame, response would make more challenging the govern- ment’s ability to fashion and achieve a credible deficit writes Craig Drake reduction target.” Japan’s debt is the largest in the industrialised AST week, Belarus demonstrated world, standing at more than twice its GDP of $5 tril- very clearly what happens to a coun- lion (£3.03 trillion), and is likely to expand further in try when it does not address its the wake of reconstruction efforts following the nat- Ldeficit, does not rein in spending ural disasters in March. Analysts are worried that, and tries to mask its problems with state with an ageing population, Japan will simply find its intervention. Overnight, the National debt load unsustainable. Bank of Belarus devalued the Belarusian However, those concerns have been voiced many rouble by 56 per cent. The devaluation times before and, much to the consternation of yen resulted in an immediate 24 per cent rise ANALYSIS l Belarusian rouble bears, they have not come to pass. Japan continues in fuel prices, and shoppers queuing 0.035 to generate a surplus of capital and is therefore able down the street as shelves emptied of US cents to finance its fiscal deficits internally. Eventually, the food. 0.030 demographics of the country and the exponential Those with Belarusian-denominated increase in its debt will catch up with its currency, debt saw their liabilities halved and those 0.025 but for now dollar-yen continues to trade primarily holding their money in gold or silver saw off interest rate differentials. their relative purchasing power double. 0.020 That’s why this week all eyes in the currency mar- However, the rest of the country is up the 0.020 ket will be focused on the US non-farm payrolls proverbial creek without a paddle. 28 May 0.015 report due Friday at 1.30pm. Market consensus is for The former Soviet state had previously 1 May 9 May 16 May 23 May an increase of 194K, slightly lower than the prior been granted a $3bn loan by Russia, with month’s reading of 244K. However, if the number the country being pushed to sell $7.5bn of Following Belarus off the cliff Picture: ALAMY surprises to the upside it could provide further lift to assets in order to plug some holes in the dollar-yen. I believe that the Federal Reserve will country’s economy. In response to this inevitably draw comparisons with Greece, As is the case for every country that need to see at least three consecutive 200K+ months insistence, President Alexander as it weighs up plans to leave the tries to devalue its currency, Belarus is on of job growth in order to seriously consider a rate Lukashenko warned that Belarus “will European single currency experiment the road to hyperinflation. According to hike. If the US employment data proves robust for a not throw anything to anybody for noth- and return to the drachma. According to Alexei Moiseev, chief economist at VTB second month running, the market will begin to price ing.” investment managers Charles Stanley: Capital: “Unless Belarus heeds Russia’s in the possibility of a US rate hike before the year The state’s economy collapsed with the “Critically, in our view, the threatened call for mass privatisation of state assets, end. That dynamic is likely to fuel a much more sus- end of the Soviet Union, which had pro- fire-sale of state assets will be the warning it is headed for hyperinflation, mass tainable rally in dollar-yen than any ratings agency vided the country with a market for shot fired at each country in the devel- unemployment and a shutdown of pro- downgrade. If the US labour condition continues to exporting farm materials, textiles and oped world considering following duction.” show improvement, dollar-yen could test the ¥85.00 agricultural machinery. When he came to Belarus’ example.” They continue: “The As the Greek finance minister in level as the summer progresses. power in 1994, elected on a platform of world is beginning to wake up to the real- Athens considers his country’s monetary Brownonomic market socialism, isation that there exists simply insuffi- future, he should look 1,500 miles north Lukashenko re-nationalised companies cient cash flow to cover the interest to Minsk to see the effects of long term and infrastructure and put in place price payments on a debt pile, in both the pub- dependence on bailouts and bond auc- and currency controls. lic and private sectors, a pile that contin- tions. But as George Papaconstantinou As a country that has been in a vast, ues to rise at an astronomic rate even as tries to sail between Scylla and Charybdis rigid supranational political and mone- the global economy shows signs of slow- – between leaving the euro and remain- tary union – reliant on bailouts from ing from the centrally planned and ing in the eye of the Eurozone storm – he neighbours to stay afloat – market watch- ‘steroid-infused’ post-Great Recession knows that at some point his rapidly sink- ers observing the plight of Belarus will recovery.” ing ship may be wrecked in the squall. TRADE EQUITY CFDs FOR

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It is an uncertain bet to tie your money up online

Picture: GETTY Bitcoins are rising fast – but risky too Governments will not let an alternative currency compete, writes Philip Salter

ICKARD Falkvinge, the Swedish FOR THE HYPERINFLATED IT entrepreneur and founder of On the other side of the coin, for peo- Forex & CFD Trading. Worldwide. the first Pirate Party, has ple living in countries where their Rannounced he is piling all his governments are worse than crimi- money into bitcoins, a digital curren- nals, such considerations won’t apply. cy that is attracting a lot of online Indeed, it would offer some a cleaner interest. Although the technology is method of payment than usually groundbreaking and its security sub- open to them. Bitcoins wouldn’t have stantial, Falkvinge is nevertheless tak- been a bad option for Zimbabweans ing a huge leap of faith. who could see where Mugabe’s gov- Satoshi Nakamoto, a Japanese com- ernment was taking them. puter programmer, set out his innova- Focus your Forex trading potential tive idea for bitcoin in his 2009 paper: IN GOLD WE TRUST Bitcoin: A Peer-to-Peer Electronic Cash Many savers have turned to the “bar- System. Unlike every previous curren- barous relic” of gold to counteract cy it doesn’t rely upon a central inflation. Relying upon this historical- authority. It is stored virtually in the ly proven store of wealth is the oppo- form of a file and digitally transferred. site of tying up wealth in complex Once the money supply has reached new code. In Nakamoto’s 2009 paper, 21m bitcoins – growing as the net- he claims: “We have proposed a sys- work grows – no more will be issued, tem for electronic transactions with- thus prohibiting devaluation. Bitcoins out relying on trust.” However, all can’t be frozen, tracked or taxed. stores of wealth rely on trust at some level and with its complexity and GOVERNMENTS LIKE TAX criminal potential, bitcoins can’t com- If bitcoins catch on, all functioning pete with the yellow metal. Buying governments will make them illegal. bitcoins could be a profitable, if risky, This will no doubt be framed as a short-term speculative bet. But you move to stem its criminal use. will have to get out before govern- However, legitimate as these concerns ments step in to break up the party. are, lost tax and monetary competi- tion will be the principal spurs for ANALYSIS l Bitcoin against sterling action. In making bitcoins illegal, 6 £ their price, which has rocketed over 800 per cent over the last few months, £5.593 will plummet, pushing the currency 4 31 May underground: thus cementing it as the currency of choice for criminals. Most people won’t want to hold a 2 tainted currency which companies are banned from accepting. Bitcoins will become largely unusable. 0 3 Apr18 Apr 1 May 19 May

week either. Confidence had been hit THE TIPSTER hard since the earthquake last February, TO BE FRANC, but data released has shown around 40 per cent of companies expect their fig- With MetaTrader 4 SHELTER IN ures will pick up over the course of the One of the most popular Forex trading platforms in the year. Capital Spreads offers New THE SWISSIE Zealand dollar-dollar world. MT4 is renowned for its advanced charting package $0.8235-$0.8239. The euro recovered against a basket and user-friendly interface. Trade on MT4 with one of the of currencies yesterday, helped by an largest MT4 brokers! easing of fears over the Greek crisis. The ERIPHERAL Europe, the US budget single currency reached a three-week impasse and escalating tightening high against the yen at ¥117.80 after Plus, Alpari Research Tools measures in China remain the key Moody’s placed Japan’s debt ratings drivers for commodity currencies under review for a possible downgrade. Access a wide range of research tools free with your Alpari P and dollar crosses. Swiss franc pairs Traders are not yet eyeing a return to (UK) Live account: Alpari Squawk for live audio market express these themes very well given the highs of last month, above ¥123, but commentary, technical analysis reports from Trading Central, Switzerland’s immense external position are instead looking at a strong support and chart-pattern recognition from Autochartist. and strong output. As well as being a line dating back to March, which sug- safe-haven, Swissie pairs are also benefit- gests that a possible pullback to around Alpari (UK) is authorised and regulated by the Financial ing from strong Swiss economic growth. the ¥116 level could still be on the cards. Services Authority. Forex and CFDs are leveraged products. Alpari offers Australian dollar-Swiss Spreadex offers euro-yen ¥117.49- They may not be suitable for you as they carry a high degree franc SFr0.9079-SFr0.9082. ¥117.53. of risk to your capital and you can lose more than your initial The euro was given a boost this week, Sterling-dollar has been on a one-way Trading Central Alpari Squawk investment. You should ensure you understand all of the risks. Autochartist with the authorities adamant there will charge from $1.6100 since weak US be no restructuring of Greek debt and data last week saw the dollar come stating the aid plan should be in place by under pressure. Chartists watching the the end of June. But with non-farm pay- four-hour candles yesterday noticed a rolls looming on Friday, the current spurt bearish outside reversal as it failed to of exuberance might have got ahead of break $1.6550 resistance and the day alpari.co.uk/mt4 itself. Chartists are eyeing up the candle was also setting up as a bearish $1.4450-$1.4500 area as the next big hammer. A close below $1.6472 would +44 (0)20 7426 2890 Best Active Best Active Best Execution Fastest Growing Falcon Award for Best New Best Forex Trading Tools Trading Tools House Forex Company Client Services Institutional Broker UK Product barrier. IG Index offers euro-dollar be a good sell signal for a pull back to $1.4418-$1.4420. $1.6325. Spread Co offers sterling-dol- The Kiwi had a great week against the lar $1.6474-$1.6476. dollar and it has not disappointed this Philip Salter CITYA.M. 1 JUNE 2011 Wealth Management | Foreign Exchange 21 Yen faces bleak long-term prospects

With Moody’s new warning over Japan, traders will be watching the yen, particularly against the dollar. We asked four experts for their views on the outlook for the world’s third most traded currency

IG INDEX environment. Both the Japanese government HIFX and the Bank of Japan will be doing all they value it was, making Japan expensive for us CHRIS can to keep the national economy afloat, high- CHRIS TOWNER Brits. BEAUCHAMP lighted by news that the Bank of Japan (BOJ) The outlook for the yen is that it is likely the cur- will lend an additional ¥829.6bn under its When looking at the per- rency will weaken. The devastating earthquake, The yen suffered a sharp “growth industries programme”. This pushes formance of the yen over tsunami and nuclear crisis may deter foreign drop on Tuesday follow- the bank close to its limit for current lending, the past few years, and investors from investing in Japan. Added to this, ing a double-whammy paving the way for a discussion about addi- weighing up all that cash-rich Japanese corporates will need to com- of bleak news for the tional support. Japan has been through, pensate for weakness in their domestic econo- Japanese economy. It fell initially after a It’s hard to see any real catalyst for the yen to not only over the past my by acquiring foreign businesses in more report on April’s factory output showing move higher while the BOJ remains set on few months, but also over the past two decades, buoyant markets. With the yen so strong, for- growth was even lower than forecast, at 1 per loose monetary policy and the US Federal it is hard to fathom why this currency remains eign markets such as the UK and the US look cent rather than 2.2 per cent, and then Reserve inches ever-closer towards some so strong. To put the current strength of the attractive. Take, for example, the capital invest- retreated even further after Moody’s followed degree of tightening. In addition, memories of Japanese yen into perspective, in the summer of ment of the Japanese firm Hitachi to build trains Fitch’s lead and put Japanese debt on nega- the coordinated G7 intervention to weaken 2007, just before the credit crisis struck, you in the UK. On top of this, we have seen interven- tive watch, with the threat of a possible the yen remain fresh in everyone’s mind, keep- could buy 250 yen for one pound, and now you tion in the forex markets by the G7 in order to downgrade within three months. ing traders wary of pushing the yen too high can only buy 135. This means that, despite the curb the Japanese yen from rising further. With Yesterday’s steep fall has undone much of last lest they provoke the wrath of central yen being somewhat dampened by the defla- the yen over-valued, G7 support and Japanese week’s movements, and reinforces the longer- bankers. A return to ¥82 and beyond is quite tionary spiral that has trapped Japan over the corporates hungry for return in foreign markets, term view for the yen in the post-earthquake likely. past two decades, it is now almost double the the stars are aligned for a weaker yen.

SPREAD CO level of the ¥76.49 to ¥85.50 move at ¥81. LONDON CAPITAL GROUP years ago and so there’s a huge amount of With the lasting damage the earthquake and support for the dollar here, making it difficult IAN O’SULLIVAN the tsunami have left behind, Japan’s economy ANGUS CAMPBELL for the cross to break and push on below the is going to struggle for a while to come. Since the terrible earth- ¥80 mark. Japan faces many structural prob- Before the earthquake Factory orders and GDP are weak. quake back in March, dol- lems, a budget deficit like no other, and only crisis hit Japan, dollar- With Moody’s and Fitch putting Japanese debt lar-yen has managed to yesterday Moody’s announced that they are yen was actually starting on negative watch and the Bank of Japan stabilise back above the reviewing their bond ratings for a possible to display signs of bot- (BOJ) intent on keeping monetary policy loose, ¥80 mark. Just after the downgrade. Such a move has pushed the yen toming out around the it all points to upside in dollar-yen. Add in earthquake the yen saw a lower and the weakness in the yen could con- ¥81 level and had man- reports of massive buy orders all the way down huge rally, as investors tinue for some time. aged to break above a to ¥80.00 and that China has been recently believed that the currency would see a huge However, the fact that dollar-yen has closed downtrend resistance line in place since mid buying dips and there are solid reasons to be rush of buying, as people repatriated funds in below ¥80 on a few occasions shows that 2007 around the ¥82 level. Of course, this going long rather than short at the current order to pay for the clear up. A similar thing there might be another attempt by yen bulls attempted recovery was shattered by the mid-point it sits at. happened after the Kobe earthquake back in to push it higher. If you consider the ¥80 level earthquake, as the yen rallied some 650 pips in It needs to break mini trend resistance at January 1995, when the yen rallied 20 per on an inflation-weighted basis, when it hit four days as investors speculated on the direc- ¥81.75 and again around ¥82.05 where both cent in three months, but this time round we there back in 1995, the equivalent level today tion of the yen due to repatriation and insur- the 38.2 per cent Fibonacci level comes in and have not seen anything like a similar reaction. is roughly ¥60, due to the bouts of deflation ance flows. The G7 intervention reversed this in the 100-day moving average. If it can break The current levels we’re at in dollar-yen also that Japan has experienced in the past decade an equally brutal manner and right now dollar- that we could well see ¥83.50-¥84.00 hit coincide with the same levels seen sixteen or so. yen sits just above the 50 per cent retracement before the end of the summer.

FOREX ANALYST PICKS

FOREX STRATEGIST FOREX STRATEGIST FOREX STRATEGIST JOHN KICKLIGHTER ILYA SPIVAK JOEL KRUGER

My pick: Short euro-dollar and Kiwi dollar-dollar My pick: Long dollar-Canadian dollar My pick: Buy dollar-Canadian dollar Expertise: Fundamental analysis with risk management Expertise: Global macro Expertise: Technical analysis Average time frame of trades: 1 day to 1 week Average time frame of trades: 1 week to 6 months Average time frame of trades: 4 weeks Neither the euro-dollar nor Aussie dollar-dollar short setups from The dollar-Canadian dollar produced a bullish inverse head and shoulders The market has finally managed to mount a recovery since basing out by last week triggered, as risk appetite trends bounced and speculation chart pattern above the May low, confirming a reversal with a break above fresh multi-month lows in the Ca$0.9400s and could be in the process of for the end of QE2 failed to catch traction for the dollar. That said, the formation’s neckline at Ca$0.9667. The pair is pulling back from falling attempting to establish a more meaningful base. The latest break and I’m not at all confident in this positive drift for risk. I’ll keep the euro- trend line resistance set from mid-October 2010, but I expect a reversal as close back above Ca$0.9700 triggers an inverse head and shoulders pat- dollar break below $1.4000 in mind. In the meantime, I think Kiwi risk aversion returns as the expiry of QE2 looms. Dollar-Loonie shows a strong tern projecting additional gains towards parity over the coming days. dollar-dollar is strong beyond even an optimistic skew on fundamen- inverse correlation with the S&P 500, and a move lower in US shares ought Look for setbacks supported above Ca$0.9600 on a daily close basis. Buy tals. Here I’m looking for a sharp reversal below $0.8050. to push the pair higher. Look for a daily close above Ca$0.9760 to enter long. at Ca$0.9700 for a Ca$1.0100 objective. Stop at Ca$0.9540. 22 Wealth Management | Markets CITYA.M. 1 JUNE 2011

FTSE 100 FTSE 250 FTSE ALLSHARE DOW NASDAQ S&P 500 / 1.1438 0.0093 /$ 1.4377 0.0090 5989.99 12060.79 3121.07 12569.79 2835.30 1345.20 /$ 1.6449 0.0024 /£ 0.8742 0.0070 51.12 101.99 26.45 128.21 38.44 14.10 /¥ 133.02 0.6622 /¥ 117.12 1.4900 Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low GILTS Yule Catto & Co . . . . .222.1 0.3 240.5 112.3 Brewin Dolphin Ho . .166.3 -1.2 185.4 114.0 RPC Group ...... 355.0 5.0 360.0 178.7 Amlin ...... 425.0 4.9 433.0 369.3 Centamin Egypt Lt . .127.2 0.9 197.1 115.8 Hammerson ...... 479.5 6.6 479.7 336.3 JD Wetherspoon . . . .445.1 0.4 468.3 386.5 CONSTRUCTION & MATERIALS Camellia ...... 10200.0 493.010700.0 7375.0 Smiths Group . . . . .1236.0 16.0 1429.0 1018.0 Beazley ...... 127.5 -2.3 139.2 109.1 Eurasian Natural . . .845.5 -10.0 1125.0 806.5 Hansteen Holdings . . .87.3 -0.1 89.3 59.4 Ladbrokes ...... 148.6 1.7 152.2 122.7 Tsy 3.250 11 . . . . .101.45 -0.02 103.8 101.4 Charles Taylor Co . . .130.0 0.0 240.0 124.8 Catlin Group Ltd. . . .417.6 2.9 422.7 319.9 Fresnillo ...... 1458.0 48.0 1682.0 897.5 Land Securities G . . .832.0 7.0 837.5 545.0 Marston's ...... 107.0 -0.3 117.1 90.4 Tsy 9.000 11 . . . . .100.96 -0.03 109.3 101.0 Balfour Beatty ...... 321.9 3.7 357.3 229.8 City of London Gr . . . .85.5 0.0 93.6 65.8 GENERAL RETAILERS Hiscox Ltd...... 422.1 3.8 426.9 335.5 Gem Diamonds Ltd. .259.0 -11.5 306.0 186.3 SEGRO ...... 324.7 4.6 331.3 250.2 Millennium & Copt . .515.5 7.5 600.5 392.0 Tsy 2.500 11 . . . . .307.79 0.00 310.0 307.8 Keller Group ...... 520.5 0.5 698.5 504.5 City of London In . . .435.0 1.0 461.5 273.5 Brown (N.) Group . . .291.1 2.1 311.2 221.0 Jardine Lloyd Tho . . .697.0 10.5 709.0 521.5 Hochschild Mining . .530.0 6.5 680.0 280.0 Shaftesbury ...... 538.5 14.5 538.5 349.3 Mitchells & Butle . . . .318.3 3.4 361.0 274.0 Tsy 5.250 12 . . . .104.60 -0.04 108.5 104.6 Kier Group ...... 1281.0 -22.0 1418.0 886.5 Close Brothers Gr . . .798.5 4.0 888.5 664.0 Carpetright ...... 722.5 12.5 835.5 631.0 Lancashire Holdin . . .646.5 -7.0 664.5 474.6 Kazakhmys ...... 1314.0 18.0 1671.0 965.0 National Express . . .255.1 -1.5 270.2 213.4 Tsy 9.000 12 . . . .109.62 -0.37 116.9 108.6 SOFTWARE & COMPUTER SERV. ELECTRICITY Collins Stewart H . . . .79.5 0.8 90.8 67.3 Debenhams ...... 74.8 0.7 77.4 53.0 RSA Insurance Gro . .137.5 1.4 143.5 117.2 Kenmare Resources . .49.0 1.7 50.3 11.5 Punch Taverns ...... 70.9 -0.5 90.4 58.0 Tsy 5.000 12 . . . .103.37 -0.05 107.3 103.3 Evolution Group . . . . .70.8 -1.3 99.0 67.0 Dignity ...... 755.0 -12.0 774.5 623.5 Aviva ...... 436.9 6.1 477.9 305.8 Lonmin ...... 1600.0 28.0 1983.0 1355.0 Autonomy Corporat 1797.0 1.0 1975.0 1271.0 Rank Group ...... 153.0 4.1 153.9 94.8 Tsy 4.500 13 . . . .106.26 -0.03 109.2 105.8 Drax Group ...... 465.2 3.6 470.5 333.0 F&C Asset Managem .79.6 1.2 92.9 47.5 Dixons Retail ...... 19.7 0.8 28.5 11.8 Legal & General G . . .117.1 1.4 123.8 75.6 Petropavlovsk ...... 780.5 2.0 1365.0 720.5 Aveva Group ...... 1667.0 9.0 1739.0 1125.0 Restaurant Group . . .296.4 1.4 335.0 208.2 Tsy 2.500 13 . . . .286.02 -0.03 286.1 273.8 Scottish & Southe . .1378.0 12.0 1394.0 1052.0 Hargreaves Lansdo .633.0 7.0 646.5 317.4 Dunelm Group ...... 450.0 -2.4 550.0 325.3 Randgold Resource 5015.0 86.0 6655.0 4425.0 Computacenter . . . . .435.8 -14.1 489.7 260.0 Stagecoach Group . .237.5 -0.7 246.9 160.7 Tsy 8.000 13 . . . . .116.07 -0.09 121.3 115.8 LIFE INSURANCE ELECTRONIC & ELECTRICAL EQ. Helphire Group ...... 4.8 0.3 45.0 3.3 Halfords Group . . . . .400.7 5.6 550.0 348.2 Rio Tinto ...... 4245.0 -22.0 4712.0 2880.5 Fidessa Group . . . . .1945.0 20.0 1956.0 1269.0 Thomas Cook Group 150.4 2.8 207.7 145.0 Tsy 5.000 14 . . . . .110.81 -0.05 114.1 109.2 Henderson Group . . .150.2 2.3 173.1 118.1 Home Retail Group . .215.0 1.0 252.0 188.5 Old Mutual ...... 131.2 1.8 145.2 102.0 Vedanta Resources 2152.0 -17.0 2583.0 1839.0 Invensys ...... 309.8 7.1 364.3 230.2 TUI Travel ...... 235.0 0.8 271.9 190.0 Tsy 7.750 15 . . . .104.54 -0.35 111.0 76.0 Domino Printing S . .668.0 -12.5 705.0 385.0 Highway Capital . . . . .21.0 1.0 23.0 6.0 Inchcape ...... 393.2 1.1 414.0 237.1 Phoenix Group Hol . .665.0 -3.0 758.0 584.5 Xstrata ...... 1425.5 2.0 1550.0 845.8 Kofax ...... 463.5 -0.5 535.0 231.0 Whitbread ...... 1631.0 7.0 1887.0 1344.0 Tsy 8.000 15 . . . .125.91 -0.07 131.6 123.7 Halma ...... 394.2 6.2 399.4 244.7 ICAP ...... 484.3 1.2 570.5 380.2 JD Sports Fashion . .950.0 49.0 964.5 683.0 Prudential ...... 737.5 4.0 777.0 489.2 MOBILE TELECOMS Logica ...... 138.0 0.7 147.2 101.7 William Hill ...... 213.7 2.2 223.5 155.5 Tsy 4.750 15 . . . . .111.32 -0.05 114.7 108.6 Laird ...... 137.7 0.4 179.0 98.8 IG Group Holdings . .449.0 -7.0 553.0 379.2 Kesa Electricals . . . .149.5 1.0 174.0 99.2 Resolution Ltd...... 311.6 1.1 314.0 211.3 Micro Focus Inter . . .375.1 3.3 541.5 276.0 AIM 50 Tsy 2.500 16 . . . .328.32 0.00 328.4 304.4 Morgan Crucible C . .316.0 8.1 333.0 173.5 Intermediate Capi . . .344.6 3.7 360.3 240.4 Kingfisher ...... 287.1 3.3 290.8 198.5 St James's Place . . . .343.3 2.2 360.4 204.2 Inmarsat ...... 603.0 0.5 821.0 575.0 Misys ...... 361.8 7.7 368.9 227.0 Tsy 4.000 16 . . . .108.41 -0.05 111.4 104.9 Renishaw ...... 1693.0 -7.0 1819.0 683.0 International Per . . . .370.6 8.6 386.6 183.3 Marks & Spencer G . .398.9 3.0 427.5 327.2 Standard Life ...... 209.9 0.9 244.7 173.0 Vodafone Group . . . .169.0 -0.5 181.9 135.1 Sage Group ...... 290.2 3.5 302.0 222.7 Abcam ...... 425.0 -1.0 432.0 237.4 Tsy 1.250 17 . . . . .110.70 -0.03 111.1 104.9 Spectris ...... 1575.0 29.0 1585.0 740.5 International Pub . . . .116.7 -0.5 118.3 108.6 Mothercare ...... 437.5 -0.5 627.5 382.0 SDL ...... 707.0 -3.0 721.7 438.4 Albemarle & Bond . .335.0 6.4 340.0 218.0 Tsy 8.750 17 . . . .136.41 -0.37 142.2 132.9 MEDIA NONEQUITY INVESTM. COMM. EQUITY INVESTMENT INSTRUM. Investec ...... 505.0 5.4 538.0 429.2 Next ...... 2270.0 17.0 2326.0 1868.0 Telecity Group ...... 542.5 -6.0 550.0 374.0 Amerisur Resource . .29.0 1.0 29.8 11.5 Tsy 12.000 17 . . .127.03 0.00 185.9 126.0 IP Group ...... 48.9 -1.1 52.5 28.0 Sports Direct Int . . . .225.2 0.2 234.9 94.2 4imprint Group . . . . .271.5 2.0 276.0 195.0 Genesis Emerging . .527.0 10.0 568.0 433.3 Archipelago Resou . . .61.0 0.6 66.8 32.3 Tsy 5.000 18 . . . . .114.19 -0.04 117.6 109.7 SUPPORT SERVICES Aberforth Smaller . . .706.0 8.0 706.0 498.0 Jupiter Fund Mana . .287.3 1.2 337.3 180.3 WH Smith ...... 485.5 -2.6 523.0 398.2 Aegis Group ...... 141.6 1.3 148.3 103.6 OIL & GAS PRODUCERS ASOS ...... 2367.0 28.0 2432.0 632.5 Tsy 4.500 19 . . . . .110.40 -0.04 113.8 105.4 Alliance Trust ...... 382.8 1.3 385.0 293.5 LMS Capital ...... 64.1 -0.1 64.8 40.0 Bloomsbury Publis . .130.9 1.6 138.0 106.8 Aggreko ...... 1867.0 53.0 1887.0 1264.0 Aurelian Oil & Ga . . . .52.0 -1.0 92.0 35.8 Tsy 3.750 19 . . . .104.58 -0.05 107.7 99.4 Bankers Inv Trust . . .425.5 3.5 429.6 337.0 London Finance & . . .20.5 0.5 21.5 16.5 HEALTH CARE EQUIPMENT & S. British Sky Broad . . .832.0 -2.5 849.0 563.5 Afren ...... 165.7 1.9 171.2 79.2 Ashtead Group . . . . .182.8 2.0 207.9 77.0 Avanti Communicat .418.3 26.5 735.0 376.0 Tsy 4.750 20 . . . . .111.78 -0.07 115.9 106.6 BH Global Ltd. GB .1092.0 -8.0 1174.0 1058.0 London Stock Exch .980.5 -9.5 1000.0 544.0 Smith & Nephew . . . .677.0 0.0 742.0 537.5 Centaur Media ...... 56.0 1.0 73.0 45.8 BG Group ...... 1406.5 -4.0 1564.5 1002.0 Atkins (WS) ...... 820.0 1.0 831.0 650.0 Avocet Mining ...... 201.3 4.3 253.5 112.0 Tsy 2.500 20 . . . .335.40 0.02 335.6 303.8 BH Global Ltd. US . . . .10.7 -0.1 11.6 10.4 Man Group ...... 256.9 3.6 311.0 206.4 Synergy Health . . . . .863.0 -18.0 948.0 565.0 Chime Communicati .298.5 29.5 298.5 158.0 BP ...... 468.4 8.7 509.0 302.9 Babcock Internati . . .689.5 -3.5 704.5 492.8 Blinkx ...... 140.3 0.8 148.8 27.5 Tsy 8.000 21 . . . .140.01 -0.07 147.1 133.8 BH Macro Ltd. EUR . . .16.9 0.1 17.2 15.8 Paragon Group Of . .202.2 5.4 204.4 114.4 Creston ...... 116.0 -0.5 117.0 78.5 Cairn Energy ...... 441.2 -1.2 493.2 366.0 Berendsen ...... 484.1 -2.4 519.5 360.2 Borders & Souther . . .55.5 0.5 93.0 53.5 Tsy 1.875 22 . . . . .116.07 0.03 117.8 108.5 BH Macro Ltd. GBP 1745.0 7.0 1780.0 1630.0 Provident Financi . . .977.0 6.5 1033.0 728.5 HHOLD GDS & HOME CONSTR. Daily Mail and Ge . . .453.2 1.5 594.5 433.0 EnQuest ...... 132.9 -0.3 158.5 96.0 Bunzl ...... 766.5 10.0 783.0 658.0 BowLeven ...... 307.0 6.0 398.0 111.3 Tsy 4.000 22 . . . .104.20 -0.07 108.4 99.0 BH Macro Ltd. USD . . .16.8 0.0 17.1 15.8 Rathbone Brothers .1209.0 7.0 1257.0 762.5 Barratt Developme . .113.4 0.9 119.0 70.1 Euromoney Institu . .663.0 8.0 736.0 562.5 Essar Energy ...... 455.9 4.6 589.5 387.1 Capita Group ...... 736.0 12.5 810.0 635.5 Caledon Resources .102.5 -2.0 107.0 23.3 Tsy 2.500 24 . . . .293.28 0.10 293.5 262.1 BlackRock World M .780.0 8.0 815.5 533.0 Real Estate Credi . . . . .1.4 -0.0 2.4 0.9 Bellway ...... 743.0 5.0 753.5 511.0 Future ...... 17.3 -0.5 30.0 15.8 Exillon Energy ...... 453.7 23.7 469.7 166.0 Carillion ...... 383.0 3.0 403.2 291.2 Cape ...... 528.5 10.0 564.0 190.5 Tsy 5.000 25 . . . . .113.07 -0.07 118.5 107.4 BlueCrest AllBlue . . .174.8 0.0 176.2 161.5 RSM Tenon Group . . .23.5 -1.5 66.3 21.3 Heritage Oil ...... 241.5 2.5 486.0 227.8 De La Rue ...... 822.0 -2.5 984.0 549.5 Conygar Investmen .115.8 -0.5 120.0 101.3 Tsy 1.250 27 . . . .109.50 0.15 111.2 100.5 British Assets Tr . . . .138.0 1.0 140.5 105.0 S & U ...... 630.0 -10.0 708.5 482.5 JKX Oil & Gas ...... 285.3 -5.5 335.1 228.0 Electrocomponents .293.8 8.8 295.4 205.7 Cove Energy ...... 86.5 0.5 112.8 47.5 Tsy 4.250 27 . . . .103.62 -0.01 108.8 97.9 British Empire Se . . .523.0 4.5 529.0 404.1 Schroders ...... 1638.0 6.0 1922.0 1154.0 MAIN CHANGES UK 350 Premier Oil ...... 476.7 13.7 535.0 282.5 Experian ...... 800.0 24.0 819.0 578.0 Daisy Group ...... 100.0 1.0 108.5 86.0 Tsy 6.000 28 . . . .125.91 -0.01 132.7 119.5 Caledonia Investm .1774.0 16.0 1928.0 1539.0 Schroders (Non-Vo .1368.0 11.0 1554.0 950.5 Royal Dutch Shell . .2192.0 58.0 2326.5 1624.0 Filtrona PLC ...... 371.0 6.0 385.5 193.8 Desire Petroleum . . . .12.5 0.8 168.5 11.3 Tsy 4.750 30 . . . .109.39 0.06 115.0 103.0 City of London In . . .302.5 2.0 304.5 235.0 Tullett Prebon ...... 381.4 7.6 428.6 307.5 Risers%% Fallers Royal Dutch Shell . .2199.0 53.0 2336.0 1554.0 G4S ...... 285.9 4.7 286.2 237.7 EMIS Group ...... 535.8 5.0 555.5 303.5 Tsy 4.125 30 . . . .278.39 0.18 278.5 248.7 Dexion Absolute L . .148.0 0.5 151.0 131.2 Walker Crips Grou . . .50.0 0.0 50.0 45.0 Salamander Energy .287.2 2.2 317.6 210.0 Hays ...... 109.1 -0.2 133.6 88.4 Encore Oil ...... 64.5 -1.5 151.5 16.3 Tsy 4.250 32 . . . .102.48 0.04 107.8 96.0 Betfair Group ...... 839.0 8.2 Avis Europe ...... 184.2 -5.5 Edinburgh Dragon . .243.0 3.1 262.1 201.1 FIXED LINE TELECOMS Soco Internationa . . .397.5 17.8 484.2 292.0 Homeserve ...... 521.5 6.5 532.0 398.6 Faroe Petroleum . . . .162.3 12.3 218.3 113.5 Tsy 4.250 36 . . . .102.05 0.05 107.4 95.0 Edinburgh Inv Tru . . .492.2 3.2 494.8 372.2 AZ Electronic Mate . .338.1 8.1 Daejan Holdings . . .2726.0 -4.4 Tullow Oil ...... 1347.0 19.0 1493.0 991.5 Howden Joinery Gr . .113.7 0.3 127.5 56.8 Gulfsands Petrole . . .265.5 4.0 401.5 250.0 Tsy 4.750 38 . . . . .110.73 0.05 116.5 102.8 Electra Private E . . .1728.0 1.0 1755.0 1177.0 BT Group ...... 200.8 3.4 201.9 125.6 Intertek Group . . . . .2046.0 49.0 2148.0 1379.0 GW Pharmaceutical .123.5 -1.5 141.0 83.0 Tsy 4.500 42 . . . .107.14 0.00 112.8 98.9 Stobart Group Ltd. . .143.9 7.3 Gem Diamonds Ltd. .259.0 -4.3 OIL EQUIPMENT & SERVICES F&C Inv Trust ...... 317.0 2.6 317.8 251.4 Cable & Wireless . . . .45.2 0.4 62.9 42.4 Ocado Group ...... 222.7 6.1 Computacenter . . . . .435.8 -3.1 Michael Page Inte . . .534.0 5.0 567.0 349.4 Hamworthy ...... 570.5 14.5 582.0 279.0 Fidelity China Sp . . . .104.7 1.1 128.7 96.0 Cable & Wireless . . . .49.7 -0.2 92.0 46.6 Exillon Energy ...... 453.7 5.5 Cranswick ...... 759.5 -2.1 Amec ...... 1158.0 4.0 1251.0 786.0 Mitie Group ...... 231.5 4.2 241.1 188.7 Hargreaves Servic .1040.0 17.0 1040.0 556.5 ALTERNATIVE ENERGY Fidelity European . .1255.0 13.0 1287.0 916.0 COLT Group SA . . . .145.0 -0.1 156.2 109.0 Hunting ...... 749.0 2.0 817.0 439.4 Premier Farnell . . . . .293.0 5.0 308.8 210.2 Healthcare Locums . .112.5 0.0 112.5 112.5 JD Sports Fashion . .950.0 5.4 Synergy Health . . . . .863.0 -2.0 Glencore Internat . . .531.1 7.4 531.5 514.0 Fidelity Special . . . . .578.5 4.0 595.0 503.0 TalkTalk Telecom . . .144.5 0.5 168.3 114.3 John Wood Group . .628.5 -5.5 706.0 293.1 Regus ...... 115.0 2.0 119.0 66.1 Immunodiagnostic . .920.0 -38.5 980.0 575.0 Herald Inv Trust . . . . .522.0 3.5 541.0 350.5 Supergroup ...... 1112.0 5.4 Savills ...... 410.1 -2.0 Lamprell ...... 391.0 10.2 391.0 195.3 Rentokil Initial ...... 98.7 0.8 121.7 84.3 Impellam Group . . . .327.5 -0.5 387.5 72.5 AEROSPACE & DEFENCE HICL Infrastructu . . . .118.0 0.4 121.3 112.0 FOOD & DRUG RETAILERS Ferrexpo ...... 457.6 4.9 JKX Oil & Gas ...... 285.3 -1.9 Petrofac Ltd...... 1603.0 15.0 1685.0 1126.0 RPS Group ...... 247.5 -1.0 251.4 169.8 James Halstead . . . . .470.0 -15.0 485.0 300.5 BAE Systems ...... 330.2 -0.5 369.9 294.7 Impax Environment .121.7 1.8 130.5 106.5 Booker Group ...... 69.0 0.0 70.3 39.5 Soco International . .397.5 4.7 United Business Me .580.0 -1.9 PERSONAL GOODS Serco Group ...... 577.0 19.5 640.0 529.5 Kalahari Minerals . . .229.0 -2.5 301.0 142.0 Chemring Group . . . .665.5 9.5 736.5 519.6 JPMorgan American .886.0 -1.0 909.0 673.0 Greggs ...... 526.0 0.5 533.0 418.7 Johnson Matthey . .2119.0 4.6 Domino Printing Sc .668.0 -1.8 Shanks Group ...... 127.0 3.0 127.3 96.5 London Mining . . . . .396.8 -0.3 436.5 194.0 Cobham ...... 226.6 0.8 247.6 192.3 JPMorgan Asian In . .234.0 4.0 250.8 186.0 Morrison (Wm) Sup .303.6 -2.3 308.3 257.7 Burberry Group . . . .1319.0 29.0 1365.0 690.5 SIG ...... 152.2 1.6 153.5 90.7 Lupus Capital ...... 132.0 -3.0 150.0 72.0 Meggitt ...... 366.8 6.0 380.9 261.7 JPMorgan Emerging .584.5 5.0 639.0 479.5 Ocado Group ...... 222.7 12.7 285.0 123.5 Price Chg High Low Price Chg High Low PZ Cussons ...... 364.0 10.4 409.0 289.2 SThree ...... 411.1 4.1 447.6 231.1 M. P. Evans Group . .420.3 5.3 500.5 317.5 QinetiQ Group ...... 114.6 2.1 136.3 96.7 JPMorgan European .927.0 11.0 983.5 614.0 Sainsbury (J) ...... 345.6 2.4 395.0 317.2 Supergroup ...... 1112.0 57.0 1820.0 605.0 Travis Perkins . . . . .1075.0 -2.0 1127.0 709.0 Majestic Wine ...... 430.3 1.3 431.0 268.0 Rolls-Royce Group . .636.0 6.0 665.0 535.0 JPMorgan Indian I . . .412.0 7.6 502.0 393.0 Tesco ...... 419.1 3.1 440.7 377.5 Berkeley Group Ho .1129.0 4.0 1156.0 751.0 Haynes Publishing . .246.5 0.0 262.5 202.5 AstraZeneca ...... 3177.5 28.0 3385.0 2801.5 Wolseley ...... 2058.0 67.0 2261.0 1223.0 May Gurney Integr . .270.3 0.3 274.5 177.0 Senior ...... 155.0 3.8 159.5 111.2 JPMorgan Russian .652.5 13.0 755.0 502.0 Monitise ...... 27.5 -0.3 29.5 17.8 FOOD PRODUCERS Bovis Homes Group .445.1 5.9 464.7 326.6 Huntsworth ...... 73.8 2.9 87.5 65.0 PHARMACEUTICALS & BIOTECH TECHNOLOGY HARDW. & EQUIP. Ultra Electronics . . .1691.0 21.0 1895.0 1522.0 Law Debenture Cor . .372.4 2.9 373.0 273.3 Persimmon ...... 477.2 -2.2 502.5 336.5 Informa ...... 435.0 7.3 461.1 342.1 Mulberry Group . . . .1451.0 1.0 1610.0 200.5 GKN ...... 219.0 2.8 237.1 109.3 Mercantile Inv Tr . . .1095.0 0.0 1137.0 840.0 Associated Britis . .1077.0 12.0 1182.0 940.0 Reckitt Benckiser . .3437.0 45.0 3648.0 3015.0 ITE Group ...... 247.8 2.3 258.2 136.2 BTG ...... 272.9 2.3 273.9 176.0 ARM Holdings ...... 572.5 0.0 651.0 246.2 Nanoco Group ...... 79.5 -3.3 115.8 68.0 AUTOMOBILES & PARTS Merchants Trust . . . .431.8 1.3 437.0 320.0 Cranswick ...... 759.5 -16.5 907.5 735.0 Redrow ...... 130.3 2.3 139.0 97.5 ITV ...... 71.1 1.5 93.5 48.3 Genus ...... 975.0 -3.0 1000.0 701.0 CSR ...... 359.2 -6.3 447.0 280.9 Nautical Petroleu . . .340.3 20.3 547.0 50.5 Monks Inv Trust . . . .354.4 3.4 367.9 275.5 Dairy Crest Group . . .388.1 -1.5 424.9 339.7 Taylor Wimpey ...... 36.8 0.4 43.3 22.3 Johnston Press ...... 4.7 -0.6 20.0 4.7 GlaxoSmithKline . . .1320.0 3.0 1348.5 1095.0 Imagination Techn . .493.3 11.3 500.0 230.0 Nichols ...... 562.5 29.0 574.3 370.0 Barclays ...... 276.7 1.4 344.0 255.4 Murray Income Tru . .672.0 4.5 682.0 518.0 Devro ...... 286.7 -0.1 296.9 169.0 Mecom Group ...... 251.8 -4.8 310.0 162.0 Hikma Pharmaceuti .850.0 2.0 900.0 673.0 Pace ...... 117.8 2.9 231.8 93.0 Numis Corporation . .114.0 3.4 146.5 94.0 INDUSTRIAL ENGINEERING BANKS Murray Internatio . . .947.5 2.5 966.0 803.0 Premier Foods ...... 32.3 -0.2 35.1 16.0 Moneysupermarket. . .99.1 -0.9 102.7 61.0 Shire Plc ...... 1917.0 29.0 1961.0 1341.0 Spirent Communica .154.1 0.2 160.3 104.5 Patagonia Gold ...... 46.3 4.0 59.3 12.5 Perpetual Income . . .276.0 2.8 278.7 212.0 Tate & Lyle ...... 620.5 13.5 628.5 409.1 Pursuit Dynamics . . .380.0 7.0 700.0 188.0 Bodycote ...... 378.7 1.5 397.7 182.5 Pearson ...... 1142.0 17.0 1171.0 864.0 REAL ESTATE INVEST. & SERV. TOBACCO HSBC Holdings . . . . .634.8 4.3 730.9 596.2 Polar Cap Technol . .356.0 0.4 391.2 273.6 Unilever ...... 1971.0 31.0 2000.0 1688.0 Charter Internati . . . .780.0 5.5 853.5 567.0 Reed Elsevier ...... 551.0 2.0 590.5 471.4 Rockhopper Explor .231.0 28.5 510.0 202.5 Lloyds Banking Gr . . .52.0 -0.8 77.6 49.7 RIT Capital Partn . . .1303.0 -7.0 1329.2 1056.0 Fenner ...... 388.3 -1.4 392.0 186.8 Rightmove ...... 1104.0 9.0 1109.0 596.5 Capital & Countie . . .179.9 -0.2 181.8 100.2 British American . .2722.0 2.0 2745.5 2042.5 RWS Holdings ...... 389.0 0.0 418.0 239.0 FORESTRY & PAPER Royal Bank of Sco . . .42.6 0.4 52.1 37.6 Schroder Asia Pac . .225.5 2.1 233.6 182.8 IMI ...... 1038.0 7.0 1112.0 642.0 STV Group ...... 135.0 0.0 168.0 66.0 Daejan Holdings . . .2726.0-124.0 2919.0 2220.0 Imperial Tobacco . .2176.0 6.0 2231.0 1784.0 Songbird Estates . . .159.5 8.5 159.8 133.8 Standard Chartere .1628.0 23.0 1950.0 1522.2 Scottish Inv Trus . . . .503.0 5.0 517.0 401.5 Mondi ...... 611.5 7.5 615.0 367.6 F&C Commercial Pr .103.3 -1.7 108.0 88.0 Sterling Energy ...... 45.8 1.8 147.0 44.0 Melrose ...... 342.2 2.5 355.5 203.4 Tarsus Group ...... 144.0 -3.0 165.0 108.0 TRAVEL & LEISURE AG Barr ...... 1360.0 5.0 1395.0 930.5 Scottish Mortgage . .739.0 9.0 764.0 533.0 GAS, WATER & MULTIUTILITIES Northgate ...... 328.0 -1.2 346.7 152.3 Trinity Mirror ...... 46.8 1.5 124.3 45.0 Grainger ...... 125.3 -0.7 128.2 86.3 Valiant Petroleum . . .575.0 10.0 761.5 504.0 BEVERAGES SVG Capital ...... 263.2 5.3 279.8 137.8 Rotork ...... 1724.0 9.0 1895.0 1254.0 United Business M . .580.0 -11.0 725.0 483.8 Helical Bar ...... 271.9 7.4 339.5 255.3 Avis Europe ...... 184.2 -10.8 269.7 183.6 Vatukoula Gold Mi . . .130.0 -12.0 227.0 84.0 Temple Bar Inv Tr . . .945.0 4.0 950.0 717.0 Centrica ...... 318.1 1.2 346.1 274.5 Spirax-Sarco Engi . .1993.0 4.0 2063.0 1346.0 UTV Media ...... 130.0 -0.8 151.0 106.0 London & Stamford .135.5 0.6 136.5 110.3 Betfair Group ...... 839.0 63.5 1550.0 753.0 Young & Co's Brew . .666.5 34.8 670.0 510.0 Britvic ...... 436.4 3.5 518.0 364.5 Templeton Emergin .640.0 5.0 689.5 515.0 International Pow . . .318.9 2.1 448.6 289.6 Weir Group ...... 1995.0 11.0 2018.0 894.0 Wilmington Group . .121.5 1.5 183.0 118.7 Savills ...... 410.1 -8.4 427.1 273.1 Bwin.party Digita . . .145.6 5.6 309.5 127.5 Diageo ...... 1294.0 12.0 1302.0 1033.0 TR Property Inv T . . .201.0 3.2 201.9 132.3 National Grid ...... 626.0 6.5 632.5 484.2 Ferrexpo ...... 457.6 21.5 499.0 235.0 WPP ...... 757.0 9.5 846.5 614.5 St. Modwen Proper . .181.1 2.1 187.4 135.4 Carnival ...... 2441.0 2.0 3153.0 2037.0 SABMiller ...... 2249.5 24.0 2306.0 1827.0 TR Property Inv T . . . .91.0 1.3 91.5 59.5 Northumbrian Wate .362.7 0.4 364.5 277.5 Talvivaara Mining . . .481.3 0.4 622.0 351.6 Yell Group ...... 6.4 0.3 33.7 5.8 UK Commercial Pro . .83.7 -1.2 85.0 74.3 Compass Group . . . .591.0 5.0 594.5 501.0 AZ Electronic Mat . . .338.1 25.4 338.1 248.5 Witan Inv Trust . . . . .516.0 4.0 528.0 409.9 Pennon Group ...... 675.0 0.0 681.0 525.0 Unite Group ...... 215.7 -0.2 229.8 163.0 Domino's Pizza UK . .398.2 3.2 586.0 349.6 Severn Trent ...... 1514.0 -3.0 1531.0 1198.0 INDUSTRIAL TRANSPORTATION MINING easyJet ...... 363.0 2.0 479.0 322.3 CHEMICALS FINANCIAL SERVICES REAL ESTATE INVEST. TRUSTS United Utilities . . . . .622.0 -2.0 632.0 520.0 BBA Aviation ...... 218.8 1.2 240.8 175.0 African Barrick G . . .455.0 3.0 670.0 445.0 Enterprise Inns ...... 78.6 -0.5 122.7 77.0 Croda Internation . .1947.0 44.0 1959.0 952.5 3i Group ...... 288.2 1.0 340.0 254.1 Forth Ports ...... 1627.0 0.0 1647.0 1112.0 Anglo American . . .3030.0 38.0 3437.0 2254.0 Big Yellow Group . . .341.3 -1.2 353.3 284.4 FirstGroup ...... 338.3 -1.5 412.6 311.3 Elementis ...... 158.2 1.6 169.8 58.8 3i Infrastructure . . . .122.8 -0.1 125.2 106.6 GENERAL INDUSTRIALS Stobart Group Ltd . . .143.9 9.8 163.6 124.1 Anglo Pacific Gro . . .311.3 10.7 369.3 230.0 British Land Co . . . . .597.5 6.5 604.5 429.0 Go-Ahead Group . . .1437.0 -13.0 1504.0 1042.0 http://corporate.webfg.com Johnson Matthey . .2119.0 94.0 2119.0 1460.0 Aberdeen Asset Ma .234.2 1.1 240.0 123.0 Cookson Group . . . . .687.5 10.0 724.5 367.4 Antofagasta ...... 1329.0 17.0 1634.0 761.0 Capital Shopping . . .408.6 7.3 424.8 301.3 Greene King ...... 489.1 3.1 502.5 376.2 mailto: Victrex ...... 1509.0 24.0 1525.0 1049.0 Ashmore Group . . . .379.4 -0.4 383.7 236.5 DS Smith ...... 211.0 -0.6 226.0 108.0 NON LIFE INSURANCE Aquarius Platinum . .342.8 8.3 419.0 227.1 Derwent London . . .1831.0 21.0 1836.0 1208.0 InterContinental . . .1295.0 18.0 1435.0 982.0 Berkeley Technolo . . . .4.3 0.0 9.0 2.2 Rexam ...... 400.0 7.4 401.9 290.4 Admiral Group . . . . .1723.0 36.0 1754.0 1290.0 BHP Billiton ...... 2403.0 13.0 2631.5 1684.5 Great Portland Es . . .441.6 9.2 442.2 280.5 International Con . . .236.5 0.9 305.0 186.5 [email protected]

EUSHARES USSHARES Price Chg High Low Price Chg High Low AIR LIQUIDE...... 96.53 2.31 100.65 78.26 3M ...... 94.38 0.91 97.95 72.72 ALLIANZ ...... 96.18 1.64 108.85 77.48 ABBOTT LABS ...... 52.25 0.70 5 4.24 44.59 ALSTOM ...... 43.02 1.14 45.32 30.78 ALCOA ...... 16.81 0.33 1 8.47 9.81 ANHEUS-BUSCH INBEV ...... 41.92 0.69 46.33 38.37 ."%&
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ALTRIA GROUP ...... 28.06 0.12 28.09 19.53 ARCELORMITTAL...... 23.18 0.28 28.55 20.26 AMAZON.COM...... 196.69 2.56 206.39 105.80 AXA...... 14.84 0.31 16.16 10.88 AMERICAN EXPRESS...... 51.60 0.47 51.97 37.13 BANCO SANTANDER...... 8.26 0.32 10.23 7.00 AMGEN INC...... 60.54 1.19 61.53 50.34 BASF SE...... 64.26 2.34 70.22 40.74 APPLE ...... 347.83 10.42 3 64.90 236.78 BAYER ...... 56.95 1.13 59.44 43.27 AT&T...... 31.56 0.27 3 1.94 23.88 BBVA...... 8.12 0.25 10.71 6.75 BANK OF AMERICA ...... 11.75 0.06 16.20 10.91 BMW ...... 61.48 0.65 65.49 36.98 BERKSHIRE HATAW B...... 79.07 1.03 87.65 69.61 BNP PARIBAS...... 54.22 1.01 59.93 40.81 /08 BOEING CO...... 78.03 1.04 8 0.65 59.48 CARREFOUR ...... 30.78 0.50 41.28 29.83 BRISTOL MYERS SQUI...... 28.76 0.29 28.99 22.31 CREDIT AGRICOLE ...... 10.62 0.19 12.92 7.87 CATERPILLAR ...... 105.80 1.20 116.55 54.89 CRH PLC ...... 15.14 0.29 19.92 11.51 CHEVRON ...... 104.91 1.70 109.94 66.83 DAIMLER ...... 49.11 1.05 59.09 37.03 CISCO SYSTEMS...... 16.80 0.34 2 6.00 16.11 DANONE...... 50.95 1.06 50.98 41.00 CITIGROUP ...... 41.15 0 .18 51.50 36.20 DEUTSCHE BANK ...... 41.42 0.80 51.61 35.93 COCA-COLA ...... 66.81 0.30 68.77 49.47 DEUTSCHE BOERSE ...... 54.78 0.20 62.48 46.33 COLGATE PALMOLIVE ...... 87.53 1.81 8 7.58 73.12 DEUTSCHE TELEKOM ...... 10.33 0.16 11.38 8.95 ‚ CONOCOPHILLIPS...... 73.22 0.58 8 1.80 48.06 E.ON...... 19.74 0.18 25.54 19.44 $"/"3:
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DU PONT(EI) DE NMR...... 53.30 0.74 57.00 33.73 ENEL...... 4.77 0.05 4.86 3.42 EMC CORP...... 28.47 0.04 28.73 17.72 ENI ...... 16.66 0.32 18.66 14.59 -*7&3100-
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45 EXXON MOBIL...... 83.47 0.84 88.23 55.94 FRANCE TELECOM...... 15.90 0.12 17.45 14.01 GENERAL ELECTRIC...... 19.64 0.20 21.65 13.75 GDF SUEZ ...... 25.56 0.32 30.05 22.64
: GOLDMAN SACHS GRP ...... 140.66 2.02 1 75.34 129.50 GENERALI ASS...... 15.21 0.32 17.05 13.31 GOOGLE A...... 529.02 8.12 6 42.96 433.63 IBERDROLA ...... 6.15 0.07 6.50 4.38 888"645*/3&&%$06, HEWLETT PACKARD ...... 37.38 0.42 49.39 35.44 ING GROEP CVA...... 8.38 0.10 9.50 5.86 Terms & Conditions apply. See in store for details. 0/- HOME DEPOT...... 36.28 0.28 39.38 26.62 INTESA SANPAOLO ...... 1.80 0.04 2.53 1.65 -*.*5&%
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IBM...... 168.93 1.43 1 73.54 120.61 KON.PHILIPS ELECTR ...... 19.28 0.22 26.87 18.86 INTEL CORP ...... 22.51 0.30 23.96 17.60 L'OREAL...... 87.43 1.46 90.00 74.50 J.P.MORGAN CHASE...... 43.24 0.45 48.36 35.16 LVMH...... 120.90 2.90 129.05 83.66 WORLD INDICES JOHNSON & JOHNSON...... 67.29 0.52 6 7.37 56.86 MUNICH RE ...... 106.60 1.55 126.00 98.38 KRAFT FOODS A...... 34.97 0.22 3 5.44 27.59 Price Chg %chg Price Chg %chg Price Chg %chg Price Chg %chg NOKIA...... 4.75 -1.01 8.49 4.72 MC DONALD'S CORP ...... 81.54 -0.08 8 3.08 65.31 FTSE 100 ...... 5989.99 51.12 0.86 S&P 500 ...... 1345.20 14.10 1.06 CAC 40 ...... 4006.94 64.41 1.63 BOVESPA SAO PAOLO . . 64620.08 666.15 1.04 REPSOL YPF...... 23.68 0.85 24.90 15.67 MERCK AND CO. NEW ...... 36.75 0.54 37.68 31.06 FTSE 250 INDEX ...... 12060.79 101.99 0.85 NASDAQ COMPOSITE . . . 2835.30 38.44 1.37 SHANGHAI SE INDEX . . . . 2743.47 37.11 1.37 ISEQ OVERALL INDEX . . . 2969.57 13.29 0.45 RWE ...... 40.53 0.22 59.85 40.01 MICROSOFT...... 25.01 0.25 29.46 22.73 FTSE UK ALL SHARE . . . . 3121.07 26.45 0.85 FTSEUROFIRST 300 . . . . . 1142.18 9.47 0.84 HANG SENG...... 23684.13 499.81 2.16 STI ...... 3159.93 19.33 0.62 SAINT-GOBAIN ...... 45.93 1.23 47.64 27.81 OCCID. PETROLEUM...... 107.85 1.28 117.89 72.13 FTSE AIM ALL SH ...... 890.78 14.27 1.63 NIKKEI 225 AVERAGE . . . . 9693.73 188.76 1.99 S&P/ASX 20 INDEX ...... 2831.60 24.50 0.87 IGBM ...... 1066.37 22.52 2.16 SANOFI...... 55.02 0.93 56.50 44.01 ORACLE CORP...... 34.22 0.52 36.50 21.24 DOW JONES INDUS 30 . . 12569.79 128.21 1.03 DAX 30 PERFORMANCE. . 7293.69 133.39 1.86 ASX ALL ORDINARIES . . . 4788.90 42.80 0.90 SWISS MARKET INDEX. . . 6554.71 83.91 1.30 SAP ...... 43.17 0.62 46.15 34.13 PEPSICO ...... 71.12 0.72 7 1.89 60.32 SCHNEIDER ELECTRIC ...... 114.60 3.80 123.65 79.35 COMMODITIES CREDIT & RATES PFIZER ...... 21.45 0.52 21.45 14.00 SIEMENS ...... 93.00 2.61 99.39 70.02 PHILIP MORRIS INTL ...... 71.75 1.23 71.75 42.94 SOCIETE GENERALE...... 41.24 1.00 52.70 29.71 LON GD ONCE FIX AM...... 1537.00 12.00 TIN CASH...... 27040.00 0.00 BoE IR Overnight ...... 0.500 0.00 Euro Base Rate ...... 1.250 0.00 PROCTER AND GAMBLE ...... 67.00 0.80 6 7.72 58.92 TELECOM ITALIA...... 0.99 0.02 1.16 0.88 SILVER LDN FIX AM ...... 38.40 0.30 ZINC CASH ...... 2243.00 0.00 BoE IR 7 days ...... 0.500 0.00 Finance house base rate ...... 1.000 0.00 QUALCOMM INC ...... 58.59 1.24 59.84 3 1.63 BoE IR 1 month ...... 0.500 0.00 US Fed funds...... 0.250 0.00 TELEFONICA ...... 16.88 0.27 19.69 14.83 MAPLE LEAF 1 OZ ...... 57.00 1.50 BRENT SPOT INDEX...... 114.76 -0.33 SCHLUMBERGER ...... 85.72 1.01 95.64 51.67 TOTAL...... 40.03 0.59 44.55 35.66 LON PLATINUM AM...... 1821.00 40.00 BoE IR 3 months ...... 0.500 0.00 US long bond yield ...... 4.020 0.03 TRAVELERS CIES ...... 62.08 0.56 6 4.17 47.77 SOYA ...... 1379.75 0.00 BoE IR 6 months ...... 0.545 0.00 European repo rate ...... 0.870 -0.025 UNIBAIL-RODAMCO SE...... 156.70 3.30 159.30 108.66 LON PALLADIUM AM ...... 775.00 21.00 UNITED TECHNOLOGIE ...... 87.77 1.44 90.67 6 2.88 COCOA ...... 2969.00 0.00 LIBOR Euro - overnight ...... 0.910 0.04 Euro Euribor ...... 1.084 -0.01 UNICREDIT...... 1.58 0.04 2.24 1.46 ALUMINIUM CASH ...... 2597.00 0.00 VERIZON COMMS ...... 36.93 0.26 38.95 2 5.25 COFFEE...... 263.70 0.00 LIBOR Euro - 12 months ...... 2.106 0.00 The vix index ...... 16.12 0.14 UNILEVER CVA...... 22.68 0.14 24.11 20.68 COPPER CASH ...... 9150.00 0.00 LIBOR USD - overnight...... 0.128 0.00 The baltic dry index ...... 1.474 0.00 WAL-MART STORES...... 55.22 0.52 5 7.90 47.77 VINCI...... 44.84 1.33 45.48 33.01 LEAD CASH ...... 2540.00 0.00 KRUG...... 1593.40 5.00 LIBOR USD - 12 months ...... 0.729 0.00 Markit iBoxx...... 220.40 0.01 WALT DISNEY CO ...... 41.63 0.11 44.34 3 0.72 VIVENDI ...... 19.40 0.44 22.07 16.25 NICKEL CASH...... 23120.00 0.00 WHEAT ...... 189.75 -7.00 Halifax mortgage rate ...... 3.500 0.00 Markit iTraxx ...... 95.06 0.00 WELLS FARGO & CO...... 28.37 0.23 34.25 23.02 23 WORDS BY Lifestyle | Motoring RYAN BORROFF The Juke: a crossover with class Nissan’s new sporty SUV for the city is surprisingly good, if lacking slightly in engine power

HIS strange beast is the Nissan Juke. A small crossover designed for the Driving the city, it’s the funny-looking little sib- Tling to Nissan’s super-successful Juke is a little Qashqai. At first sight it appears some- thing of an oddity with its large, round surreal. You headlights, bulb-shaped sidelights and protruding bottom lip. Its shape comes sit up high from a desire to blend toughness with sportiness and attract male buyers into a SUV-Style. market segment that many ignore. So the bottom half of the car is SUV while the top Yet the car half is a sports car. Despite the fact that decent crossovers handles much of coupe and SUV are rare, the Juke is sur- prisingly successful. On the road the car more like a attracts a lot of attention and most of it seems positive. Selling a car as unusual- sports car looking as this would be a bold step for any brand to take and it’s admirable that Nissan had the kintamas to take it. At first, driving the Juke is a little surreal. You sit up high SUV-style – which is advantageous in terms of the view – yet the car handles much more like a sports car. Historically, splicing a sports car with an SUV has given questionable results. But the Juke has British blood. Designed in London and built in Sunderland, bods from Nissan’s chassis engineering division at Cranfield have devel- oped and tested the car for UK roads so the ride and handling is you drive the Above, the Nissan The controls are very clever too, what surprisingly good. The Juke has a go Juke it feels much Juke. Right, its Nissan calls its “Dynamic Control System”. THE FACTS: kart-like feel in the bends with little body bigger than it is. Yet interior In practice you can adjust the drive set- NISSAN JUKE roll. it’s a supermini so it’s tings or climate control by using the same Not that this model feels particularly essentially the same size as Nissan’s Note few buttons and dials. By switching a quick. With its more economical 115bhp, and is built on the Nissan Micra platform. “mode” button the display changes colour PRICE: £15,736 1.6-litre petrol engine it takes a fairly Inside, the Juke feels much more spa- and content – from drive mode to climate 0-62MPH: 11 secs leisurely 11sec to reach 62mph. The car cious than its exterior dimensions belie. control – and thus changes the function of TOP SPEED: 111mph has three modes: normal, eco and sport. Our Juke is in “Force Red”; and the interior the entire control unit. Impressive that. Eco mode will return the best mileage but is in black with accents of the same colour Its green credentials are unexpectedly CO2 G/KM: 147g/km the sport mode does liven things up a bit. in the trim and the seats. Here more than disappointing. Neither the fuel economy MPG COMBINED: 44.8 mpg There is a more powerful petrol version anywhere it’s quite clear that the Juke’s nor emissions are as good as they could available – which delivers 187bhp and can London designers looked to motorcycle have been. Despite this the car is comfort- THE VERDICT: reach 62mph in a more urgent 8sec – and design for inspiration. The centre console able as well as quirky and the most sur- DESIGN hhhhi a diesel engine, too. There is also the – which houses the gear stick – looks like a prising element of all is how quickly I PERFORMANCE hhhhi option to equip the car with four-wheel motorcycle fuel tank and gives the car real come to like it. And it’s unique. There real- PRACTICALITY hhhhi drive rather that just driving the front character, though the dashboard does suf- ly isn’t anything else like it. Which means hhhhi wheels as this model does. Strangely when fer a little from too much hard plastic. like it or not it’s in a class of its own. VALUE FOR MONEY

CAR TALK BY RYAN BORROFF

VAUXHALL LAUNCHES GREENEST INSIGNIA TO DATE LEXUS WINS AGAIN FOR CUSTOMER SATISFACTION JOHNSON INTRODUCES ELECTRIC CHARGING POINTS Vauxhall has introduced its greenest Insignia model yet. The new For the 11th year running, Lexus has come out top for customer sat- London Mayor Boris Johnson has launched London’s electric vehicle ultra-low emissions ecoFLEX diesel Insignia is aimed at commuters isfaction. Lexus was named top manufacturer in the J D charging scheme called Source London. The scheme is targeted to and business users and its 2.0 CDTi engine is cleaner than its prede- Power/What Car? UK Vehicle Ownership Satisfaction Study and its deliver at least 1,300 public charging points by 2013, as part of cessor. Its CO2 emissions are 115g compared to 129g for the outgo- IS saloon achieved the highest overall score. Meanwhile, its RX SUV Johnson’s plan for London to become the electric vehicle capital of ing model. was ranked third overall. This year’s study canvassed the opinions of Europe. Members can use any of the charging points for an annual almost 17,000 UK car owners. membership of £100. 24

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Investec Ladies’ Day – Friday 3rd June* Investec Derby Day – Saturday 4th June Hurry, book now Featuring the world’s greatest flat race 0844 579 3004 *Queen’s Stand tickets on Ladies’ Day are sold out. epsomdowns.co.uk 26 Sport CITYA.M. 1 JUNE 2011 FA attempt to delay election Rooney’s thunder was stolen by Messi in Saturday’s final Pic: ACTION IMAGES Rooney: Leo and demand would find it tough here Fifa reforms ▲ FOOTBALL minority view, even a singular view. Y AMES OLDMAN Whatever happens we are not with-

▲ B J G FOOTBALL drawing from Fifa and we will and we FOOTBALL ASSOCIATION chairman have to work from within the tent MANCHESTER UNITED striker Wayne David Bernstein admits his organisa- with the result of what all of this is. Rooney believes it would be hard for tion’s late bid to postpone today’s Fifa “Sometimes in life you have to take his side’s Champions League final presidential election is likely to fail a jump even if you aren’t quite sure nemesis Lionel Messi to prosper in but maintained a victory for Sepp how solid the ground is beneath you.” the Premier League in the same way Blatter would represent an unsatisfac- Despite taking such a brave stance, he does in La Liga for Barcelona. tory outcome for the sport. the FA were criticised by Chuck Messi orchestrated United’s demise Bernstein believes Fifa must also Blazer, who was last night attempting on Saturday at Wembley scoring the appoint an independent body to over- to stave off attempts to sack him from second goal, his 53rd of the season in see sweeping reforms in light of the his position as Concacaf General all competitions, in a 3-1 win which allegations of corruption and bribery Secretary by its acting president Lisle helped Barcelona claim their second which have been levied at some of its Austin. European crown in three season’s at most influential personnel. He said: “Unfortunately with them the Old Trafford club’s expense. “This is a matter of principle,” said [the FA], everything is too little too Asked if Messi could dictate games Bernstein,” whose pleas were support- late. If they wanted other candidates in the England as he does in Spain, ed by the Scottish FA’s chief executive, they should have done things before Rooney, who is suspended from Stewart Regan as well as FA president the deadline. England’s Euro 2012 qualifier against Prince William. “Myself and the FA “If they wanted to report malfea- Switzerland on Saturday, said: “If you believe that the position in Fifa is just sance they shouldn’t have waited for a bring Xavi and Iniesta with him, yes. not acceptable.” Parliamentary hearing. The FA needs But it would be difficult, almost In order for the FA to force a change to learn to be ahead of the curve and impossible for him to play as he does in the agenda of the Fifa congress, not behind the game.” in Spain. which began in Zurich yesterday, it will Meanwhile, the embattled Blatter, “The game is more physical here, need 153 of the 205 voting national who is seeking a fourth consecutive going to the likes of Birmingham and associations to support their motion. term in office, opened the congress Stoke away is very demanding. Bernstein is understood to have gar- and admitted the world governing Cristiano Ronaldo is more suited to nered support from sections of body had been destabilised by allega- the English game than Messi. Europe and Africa, but he admits the tions of corruption . Cristiano is taller and good in the air.” prospect of staging a dramatic coup is “I thought that we were living in a On defeat in the showpiece unlikely. world of fair play, mutual respect and Wembley final Rooney said: “It hurt. I “To get 150-odd votes clearly would discipline, and I must say this is not watched the game again because you be extremely difficult when we start- the case any longer,” Blatter, 75, said. Blatter will stand can always learn by watching foot- ing from a standing start,” he added. “It’s no longer the case because our unopposed in ball. It was very disappointing but you “Going forward in this situation if he pyramid of Fifa is suddenly unstable today’s election. have to put your hands up and say does with a coronation rather than an on its basis and there’s a danger. I will they were the better team. election I don’t think does anybody speak to you later today on this dan- Picture: ACTION “They are simply fantastic, a very any good – including Mr Blatter. ger that is lurking and tell you how IMAGES special side. That’s the level we want “This is meant to be a democratic we can fight together and work to be at and we have to up our game.” organisation, one’s entitled to a against this threat.” SPORT SCHOLES RETIRES Gritty Murray into last four Federer sets up Tributes pour in as Djokovic meeting

▲ tion that on another day or as he felt his way back into FOOTBALL United’s midfield another tournament I might the match. Not until he was THIRD seed Roger Federer will face in- BY FRANK DALLERES not have been able to, so I was 5-2 down was he stirred into form Novak Djokovic in the last eight maestro calls it a day proud of that,” said fourth seed a reaction, untethering his after the Swiss great despatched home BRITAIN’S Andy Murray joked he had Murray. “I don’t think many aggressive side to win five favourite Gale Monfils in straight sets. after a 17-year Old “more pills in me than Ozzy people recover from a successive games. Federer, aiming for his second Osbourne” after overcoming a torn sprained ankle and a “Once I went behind again, I French Open crown, won 6-4, 6-3, 7-6 Trafford career ankle tendon and fighting back from tear in a tendon in two loosened up a little to set up a clash with Djokovic, the the brink of defeat to reach the quar- days. I was told to stay bit, started second seed who is on a staggering Football: Page 25 ter-finals of the French Open. off my feet the day in going for 43-match winning run. Murray (right) underlined his repu- between the match- my World No1 Rafael Nadal faces tation as one of the game’s grittiest es. I was given shots Sweden’s Robin Soderling in their Investec Derby jolly performers by battling from 5-2 down crutches which I more quarter-final today. in the final set to beat 15th seed didn’t use because and In the women’s draw, defending Carlton House gives Viktor Troicki, who had won the first I didn’t know how got champion Francesca Schiavone over- two sets of a match that began on to.” through came a major scare before beating punters a scare as Monday. Resuming at it,” he added. 15th seed Anastasia Pavlyuchenkova. The Scot eventually wrapped up a two sets all, “Emotionally it was The Italian was one set down and colt is sent for X-rays 4-6, 4-6, 6-3, 6-2, 7-5 victory and, Murray quick- pretty challenging.” trailing 4-1 in the second but fought because his match ran into a second ly found Murray plays the back to win 1-6, 7-5, 7-5. The Italian Racing: Page 25 day, will be thrown straight back into himself unseeded Chela, against will play Marion Bartoli in the last four action this afternoon against behind to whom he has won his last six after the Frenchwoman beat Svetlana Argentinian Juan Ignacio Chela. “I Serbian meetings, second today on Court Kuznetsova 7-6 (7-4), 6-4. managed to come back from a situa- Troicki Suzanne Lenglen. CITYA.M. 1 JUNE 2011 Sport 27

SPORT | IN BRIEF Warner accused Chelsea favourite Hiddink Houllier tipped to leave Villa FOOTBALL: Aston Villa manager Gerard of flouting his ban Houllier’s short tenure looks likely to be ended this week due to concerns over SUSPENDED Fifa vice-president Jack wants return to club game his health. The Frenchman, 63, missed Warner has been reported for alleged- the last month of the season after being ly transgressing the terms of his ban admitted to hospital with heart prob-

by Concacaf general secretary Chuck ▲ lems. Houllier, who only joined the club Blazer. FOOTBALL in September, has since undergone fur- Warner is currently barred from BY FRANK DALLERES ther tests to determine whether he is fit football-related activities amid a Fifa to return. His No2 Gary McAllister ethics committee investigation into FORMER Chelsea manager Guus insisted two weeks ago that the former allegations of bribery, but in a letter Hiddink has dropped the strongest Liverpool boss would definitely be in issued yesterday encouraged members hint yet that he wants to return to charge next season. However, Fulham’s of his Caribbean Football Union to vote Stamford Bridge – whether he stays Mark Hughes, ex-England coach Steve for current president Sepp Blatter in on as Turkey coach or not. McClaren and Everton’s David Moyes today’s election. The Dutchman, whose current role have been linked with replacing Houllier. Blazer, who blew the whistle on may depend on the outcome of Warner, said: “We have clear evidence Friday’s Euro 2012 qualifier against Modric hints at Tottenham exit of a violation of Warner’s suspension Belgium, declared he would relish a FOOTBALL: Tottenham midfielder Luka and we have reported that to the Fifa return to the day-to-day involvement Modric has hinted the club’s failure to secretary general Jerome Valcke. of club football. qualify for the Champions League could “He has also been meeting with However, referring to the three- prompt him to leave. Modric, who is Concacaf members, which is against and-a-half months of 2009 in which thought to be a target for Manchester the rules of the suspension.” he managed Chelsea alongside United, said: “I’m happy at White Hart Russia, Hiddink suggested he would Lane, but when you experience playing be willing to juggle two high-profile in [the] Champions League, you want to jobs again. keep playing in this tournament.” “I feel energetic, so a club role is more preferable,” said the 65-year-old. Contador free to defend Tour “And that’s what I like, working every CYCLING: Tour de France winner day. I feel I need to do more. Alberto Contador is free to defend his “I’ve trained Australia and PSV title next month after his doping hearing Emirates and Visa [Eindhoven] at the same time, as well at the Court of Arbitration for Sport as Russia and Chelsea, and I was very was postponed until August. The happy. We’ll see what happens with Spaniard, who faces losing his title and a voice their concern Turkey.” two-year ban if found guilty, tested posi- Hiddink, who took over at tive for clenbuterol during last year’s EMIRATES and Visa are the latest Stamford Bridge in February 2009 fol- Tour. Spanish cycling chiefs cleared the heavyweight corporate sponsors to lowing the departure of Luiz Felipe 28-year-old in February but the Cas express their dissatisfaction at the cor- Scolari and led the Blues to the FA agreed to re-examine the case after an ruption scandal currently engulfing Cup, was last night the favourite to appeal from world governing body the Fifa. succeed the sacked Carlo Ancelotti. UCI and the World Anti-Doping Agency. Emirates, whose partnership with The former Real Madrid coach, Fifa started with the 2006 World Cup, who is still on the Chelsea payroll as Hiddink won the FA Cup with Chelsea in 2009 Pictures: ACTION IMAGES joined the likes of Coca Cola and an advisor to the club’s owner Roman Adidas in condemning the accusations Abramovich, insisted he had not yet clash in Brussels could push him clos- Results of bribery which have led to the sus- received a concrete offer from west er to the exit. pension of Executive Committee mem- London. Hiddink said his contract was for Hammers set to :I@:B 2CXeZXj_`i\*(* GA presidential candidate Mohamed bin can’t guarantee anything,” he added. anybody I was going to continue appoint Allardyce ?fikfe0+ Xe[-0$* ),%'fm\ij m;li_Xd,/- 98 Hammam. “I haven’t told the [Turkish Football working here. The team is focused on Jkfb\j(/,#;D9\eb\ejk\`e(*.#GDljkXi[-(#>A “Emirates, like all football fans Federation] chairman [Mahmut me, I would affect the team negative- DlZ_Xcc,+ %Jljj\omPfibj_`i\ ?fm\ 2Jljj\o,+/$+[\Z% DN>ff[n`e).+ef#CNGN\ccj(.+ mPfibj_`i\).* A around the world, is disappointed with Ozgener] what I thought yet. But he’s ly if I answered the speculation.” WEST HAM are expected to bring <Iffk.'#J8GXkk\ijfe,* Xe[)0$) ((%,fm\ij % the issues that are currently surround- an intelligent man. I am sure he fol- Tottenham manager Harry their search for a new manager to a Efkk`e^_Xdj_`i\mNfiZ\jk\ij_`i\ E\nIfX[ 2 ing the administration of this sport,” lows the world media.” Redknapp has also been linked with close this week, with former Efkk`e^_Xdj_`i\))* D?N\jj\cj-. Xe[('+$, */%' said a spokesperson. Blackburn boss Sam Allardyce fm\ij mNfiZ\jk\ij_`i\)+* DD8c`/+#MJJfcXeb`,)#: Turkish media have speculated the post but appears increasingly like- <J_i\Zb,$,) %;`m`j`feKnf1;\iYpj_`i\mJlii\p ;\iYp 2 Credit card giants Visa added in a that Hiddink could be sacked if he ly to stay at White Hart Lane. favourite to land the role. Allardyce, ;\iYpj_`i\+''$0[\Z% :=?l^_\j()+#;AI\[]\ie,,#K< statement: “The situation is clearly not fails to guide the team to next sum- Chelsea defender Michael who also had spells at Bolton and C`ec\p-$/( Xe[*,$+ ()%'fm\ij mJlii\p*,/ JD;Xm`\j good for the game and we ask that mer’s European Championship Mancienne, who spent last season on Newcastle, is being tipped to sign a ./#IA?Xd`ckfe$9ifne-0#KCDXpeXi[-+#Q[\9ilpe ,* %>cflZ\jk\ij_`i\mcflZ\jk\ij_`i\),, Fifa take all necessary steps to resolve finals. They currently lie third in loan at Wolves, meanwhile, looks set two-year contract at Upton Park. His <>:Pfle^,(ef#BJN`cc`Xdjfe,'#;;DXjk\ij,$+/  the concerns that have been raised.” qualifying Group A, one point behind to join Hamburg after travelling to first task will be to lead the recently Xe[*.$) (0%'fm\ij mcXdfi^Xe Efik_Xdgkfe 2 Efik_Xdgkfej_`i\+,-$-[\Z% I8N_`k\(+'#J;G\k\ij ((,#;Dlig_p.0 m>cXdfi^Xe.) NGLA:MXXj,$))  Flower reveals he’s only Hamilton apologises for Xe[((0$* */%'fm\ij  N;9iX^^,) % DFKFI:P:C@E> NFIC;JLGl`ekfc` = ;lZXk` */1,(%''/2+C:Xd`\i >9 8gi`c`X*/1,,%/''2,<CXm\ikp >9 PXdX_X*01')%-**2-KJpb\j >9 BXnXjXb` *01'.%*0)2.89X[fm`e` @k 9DN*01'0%'/,2/C?XjcXd >9 9DN*01'0%(/)20E?X^X Age 8gi`c`X*01((%'')2(' ▲ CRICKET match at Derby last month. ▲ FORMULA ONE DD\cXe[i` @k PXdX_X*01(+%'-,%)e[IXZ\1(::_\ZX “I haven’t seen much of him to be Jg ;lZXk`*/d`ej))%'/)j\Zj2)C:Xd`\i >9 8gi`c`X BY JAMES GOLDMAN BY JAMES GOLDMAN */1)0%).-2*D9`X^^` @k 8gi`c`X*/1*'%/(-2+<CXm\ikp honest,” admitted Flower. “I’ve seen >9 PXdX_X*/1*-%)0-2,D=XYi`q`f @k Jlqlb`*/1*-%/*)2 ENGLAND head coach Andy Flower him bowl once, at Derby against Sri FORMER world champion Lewis -DD\cXe[i` @k PXdX_X*/1+*%.(-2.J>l`ekfc` = ;lZXk` insists he’s happy for Surrey pace- Lanka, where I think he got nine Hamilton has apologised for his Ali G */1+-%(-(2/AJdiq :q ;lZXk`*/1+.%..'2089X[fm`e` @k  9DN*/1,(%.'*2('KJpb\j >9 BXnXjXb`*/1,)%.-*% man Jade Dernbach to be part of the wickets in the match and bowled inspired response to being repri- ;i`m\ijJkXe[`e^j1(::_\ZX Jg ;lZXk`(0,%'gkj2)D squad for this week’s second Test very well. manded twice by the Monaco stew- D\cXe[i` @k PXdX_X(*+%'2*D9`X^^` @k 8gi`c`X(**%'2+ against Sri Lanka despite hav- “I don’t know him well as a per- ards during Sunday’s Grand Prix. <CXm\ikp >9 PXdX_X('0%'2,C?XjcXd >9 9DN0,%'2 ing seen him bowl just son but he joined our squad The McLaren driver, who finished -AI\X >9 ?fe[X0+%'2.C:Xd`\i >9 8gi`c`X0(%'% once in the flesh. right at the end of the sixth and remains a distant second to KXiifj#GXi`j ÇD\e#J`e^c\jIe[+1 replaces the injured fitted in well. pionship, was penalised for tangling McLaren driver Hamilton Picture: PA + 8DliiXp >Yi Yk (, MKif`Zb` J\i +$-+$--$*-$) .$,%Hki$]`eXc1 * I=\[\i\i Jn` Yk 0 >Dfe]`cj =iX -$+ James Anderson, who “The coaches have been with Ferrari’s Felipe Massa before -$*.$- .$* %;flYc\jHki$]`eXc1 + DCcf[iX =iX E was unable to bowl in impressed with him and being handed a 20-second penalty for never meant to offend anyone.” Q`dfea`Z J\i YkJC`gjbp LJ8 IIXd LJ8 )$--$* Monday’s thrilling vic- we just wanted another a skirmish with Pastor Maldonado. Immediately after the race, -$(# ) DD`iep` 9ci ;E\jkfi :Xe Yk 0 IC`e[jk\[k tory over the tourists at option, with James Asked why he thought the stewards Hamilton said: “Massa held me up in Jn\ ?K\ZXl Ifd -$+-$)%Nfd\e#J`e^c\jHki$ ]`eXcj1 (( D9Xikfc` =iX Yk (* JBlqe\kjfmX Ilj .$- Cardiff, in a 12-man Anderson stepping out, had taken a dim view of his antics, qualifying, I got the penalty. He .$+ -$+# , =JZ_`Xmfe\ @kX Yk (+ 8GXmcplZ_\ebfmX squad which now con- other than the tall bowler in Hamilton responded: “Maybe it’s turned in to me [during the race], I Ilj ($-.$,.$,%;flYc\jHki$]`eXcj1 + C?lY\i LJ8 C tains five South African-born Steven Finn.” because I’m black. That’s what Ali G got the penalty. These drivers are IXpdfe[ LJ8 Yk , M8qXi\ebX 9ci DB`i`c\ebf Ilj  -$++$--$+# * MB`e^ LJ8 PJ_m\[fmX BXq Yk 0 E players. Meanwhile, England will leapfrog says.” ridiculous. It’s stupid.” G\kifmX Ilj 8If[`fefmX 8lj .$,*$--$)%D`o\[ Dernbach earned his first senior South Africa into second in the ICC Later, however, the 26-year-old, But Hamilton added on Twitter: ;flYc\jHki$]`eXcj1EG\kifmX Ilj ADliiXp >Yi Yk< call-up on the back of some impres- world Test rankings, potentially their mindful that his remark may have “To Massa and Maldonado, with the DXbXifmX Ilj 9JfXi\j 9iX ,$.-$*('$.#A>Xa[fjfmX sive displays for the England Lions highest ever position, should they caused offence wrote on Twitter: “Hey greatest respect I apologise if I offend- Jmb K9\cclZZ` 9iX YkIJklYYj 8lj DD\cf 9iX  during the winter and gave Sri Lanka win the final two Tests of the series at guys, I wanted to apologise for my ed you. Both of you are fantastic driv- .$- .$, -$+% a thorough workout in their tour Lord’s and the Rose Bowl. performance and my comments. I ers who I regard highly.” email [email protected] Cell, cell, cell.

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