BUSINESS WITH PERSONALITY FREE SPEECH UNDER THREAT IN BRITAIN INDEX ON CENSORSHIP ON WHY IT MATTERS FORUM: P22 Issue 1,571 Wednesday 15 February 2012 www.cityam.com FREE Eurogroup UK CAR FACTORIES meeting is postponed

▲ EUROZONE REV BACK TO LIFE BY JULIAN HARRIS A CRUCIAL meeting of Eurozone finance ministers planned for today Jaguar Land Rover posts record quarterly profit has been postponed, following doubts that Greece will stick to austerity measures necessary to receive its lat- ▲ AUTOMOTIVE est bailout. BY PETER EDWARDS TOP UK CAR PRODUCERS AND MODELS IN 2011 The meeting of ministers known as the Eurogroup will be replaced by a JAGUAR Land Rover underlined the telephone conference, chairman Jean- rebound in the British car industry TOYOTA Claude Juncker admitted last night. yesterday when it posted a record 128,146 The delay is the latest setback for quarterly profit. AVENSIS efforts to ensure Greece does not Just three years after it turned to 70,735 default on debt repayments of €14.5bn the European Investment Bank for a due on 20 March. £340m crisis loan, JLR reported a 57 LAND ROVER JAGUAR “I did not yet receive the required per cent rise in net profit to £440m MINI political assurances from the leaders for the final three months of 2011. 238,237 191,474 VAUXHALL 49,932 of the Greek coalition parties on the Demand from China and Russia, as NISSAN RANGE ROVER MINI 137,971 HONDA JAGUAR implementation of the programme,” well as the “overwhelming response” 480,485 85,829 191,474 ASTRA 97,459 49,932 Juncker said last night. to the launch of the Range Rover QASHQAI 137,971 CRV Greek conservative leader Antonis Evoque sports utility vehicle (SUV), 301,277 47,971 Samaras is believed to have balked at helped JLR to increase car sales 36.7 signing a pledge that he will stick by per cent to 86,322. UK CAR PRODUCTION the reforms and cuts agreed by parlia- This translated into a 40.9 per cent 1,400,000 ment over the weekend. rise in revenue to £3.75bn for the 1,300,000 All party leaders are required to group, which Indian conglomerate 1,343,810 sign the commitment, in order to pre- Tata bought from Ford for $2.3bn 1,200,000 1,270,444 vent the measures being scrapped (then £1.15bn) in 2008. after fresh elections due in April. The growth of JLR, now the main 1,100,000 Juncker also warned that Greek profit driver of Tata Motors, reflects 900,000 999,460 authorities and the troika – the the British automotive industry’s European Union, European Central climb out of the doldrums. 800,000 Bank and International Monetary The sector made 1.34m cars last Fund – have not yet reached a deal. 700,000 year, around 70 per cent of its peak in 2009 2010 2011 “Further technical work between 1972 – when most Brits brought UK- Greece and the troika is needed in a manufactured cars – and well ahead number of areas, including the clo- of the 1980s when it produced barely dominated by the Nissan Qashqai – 2012 would be “a gradually improv- Shares in Tata Motors, which the sure of the fiscal gap of €325m in 2012 600,000 a year. the best selling British-produced car. ing story” and pointed to investments market values at about $15bn, closed and the debt sustainability analysis,” British-made high-end marques All of Britain’s most-produced cars in new models and production at JLR up 3.7 per cent at 267.95 rupees. Juncker said. such as the Mini and Land Rover are are owned by foreign companies. and BMW. Meanwhile, JLR chief executive Ralf An additional Eurogroup meeting now sought-after signs of affluence Nissan, Toyota and Honda are Overall Tata Motors, part of the Speth yesterday said discussions scheduled for next Monday is still set among the middle classes of China Japanese, while the Vauxhall Astra is salt-to-software Tata group, posted a about a joint manufacturing venture to go ahead, Juncker said. and former Eastern bloc nations. owned by America’s General Motors. 40.5 per cent rise in net profit to with an unnamed Chinese partner – Patience with Greece among The UK also specialises in eco- John Leech, partner at KPMG’s 34.06bn rupees for the quarter. rumoured to be Chery Automobile – Eurozone and European Union lead- friendly models and new segments automotive practice, said perform- Revenue rose 44 per cent to 452.6bn are “on track” but he did not elabo- ers is believed to be close to breaking such as the mini SUV, a sector that is ance in the British car industry in rupees. rate further. point. EUROZONE: P10 ▼ ▲ ▲ ▼ ▼ Certified Distribution FTSE 100 5,899.87 -5.83 DOW 12,878.28 +4.24 NASDAQ 2,931.83 +0.44 £/$ 1.57 -0.01 £/¤ 1.20 unc ¤/$ 1.31 -0.01 02/01/12 till 29/01/12 is 92,258 2 News CITYA.M. 15 FEBRUARY 2012 The real reasons why UK is in trouble NEWS | IN BRIEF Yahoo investor calls for new board Yahoo activist investor Daniel Loeb, of the hedge fund ThirdPoint, last night parable measure amounted to half the is a general election in the middle. UK is trying to do something, unlike launched a campaign to install his own UK economy last year – or 49.8 per Even if these cuts were delivered, many other even more beleaguered slate of directors on the embattled inter- cent of GDP, to be precise, following the revenue side of the equation is nations; and few investors have actual- net firm’s board, highlighting the turmoil two years where it was just above half. predicated on stronger growth than is ly read the fine print of the chancel- engulfing the one-time online pioneer. The government’s net debt will jump likely. There is lots of evidence that lor’s spreadsheets. They just like the His move came after talks between from £905.3bn in 2010-11 to £1.515 tril- shows that very large public sectors, sound of them. Second, the UK retains Yahoo and China’s Alibaba over the US lion by 2016-17, a massive increase. very high public and private debt, and its own currency: all of its debt is in internet giant's Asian assets hit an Once again, the chancellor muddled very high tax rates on income are bad sterling. It can never technically impasse, throwing their plans for a EDITOR’S LETTER debt and deficit, two very different for growth. Over time, spending will default. It can just print money in $17bn tax-free asset swap into question, concepts, when he pledged yesterday be lower as a share of GDP, which will extremis. And third, it is actually according to sources briefed on the situ- ALLISTER HEATH “not to waiver from dealing with the help – but the government’s refusal to already doing this, thanks to quantita- ation. UK’s debts”. seriously contemplate deregulating tive easing. For the last five months, FORGET about the reasoning Moody’s Far from going “too fast, too far”, as the labour market and its anti-busi- the Bank has bought more gilts than Paulson sells his BAML stake cited when putting the UK on nega- some critics claim, George Osborne ness mood-music will reduce invest- the government has issued – and this Veteran hedge fund manager John tive watch this week. The problem wants to bring spending down far too ment and growth. Everybody was will continue for the next few Paulson sold his entire stake in Bank of with the credit rating agencies is not gradually: total expenditure will be celebrating yesterday as inflation “col- months. America Merrill Lynch in the last quar- that they are too harsh – they are cut by 0.9 per cent a year in real terms lapsed” – but it remains much higher There is therefore a false market in ter, according to filings last night. Bank invariably too soft, too backwards- in 2011-12, 2012-13, 2013-14 and 2014-5, than the Bank’s target and while it is government bonds; yields on gilts of America shares fell 15 per cent during looking and cautious. Their decisions 1.1 per cent in 2015-16 and 0.9 per cent bound to fall further the decline don’t reflect the underlying reality, the fourth quarter, but it is not clear are always months out of date. Here is in 2016-17, a total of 5.3 per cent over won’t last. By this time next year infla- but merely the fact that one part of when Paulson offloaded his 64m shares. the real reason why the UK is facing a six years. The reductions have barely tion will start going up again thanks the state – the Bank of England – is Bank of America’s losses helped turn long-term fiscal crisis – and why the started. But does anybody really to the lagged effects of QE. Inflation – “lending” money to another – the 2011 into the worst year in Paulson's bond markets were seemingly unper- believe this to be feasible? Six years of which remains at 3.9 per cent on the Treasury. It is hard to see how the UK career when his Advantage Plus fund turbed by Moody’s warning shot. austerity, during which we will be sub- retail price index – cuts real wages can possibly hope to retain its AAA lost more than 50 per cent. His vehicle The government is spending far too jected to an endless, damaging class and savings and is a drag on demand. rating under such circumstances. Paulson & Co also disposed of some much: the OECD estimates that public war to distract the public from the Given all of that, why aren’t bond [email protected] 25m shares in Citigroup during the final spending on its internationally com- cuts? It will never happen – and there market investors panicking? First, the Follow me on Twitter: @allisterheath quarter of 2011.

4th Floor, 33 Queen Street, London, EC4R 1BR Tel: 020 3201 8900 Fax: 020 7248 2711 Grieve orders Email: [email protected] www.cityam.com Editorial Editor Allister Heath Deputy Editor David Hellier News Editor David Crow probe into SFO Acting Night Editor Marion Dakers Business Features Editor Marc Sidwell ▲ POLITICS but David Green, his successor, is Lifestyle Editor Zoe Strimpel BY PETER EDWARDS believed to be happy with the review. Sports Editor Frank Dalleres A spokesman for the attorney-gener- Art Director Gavin Billenness MINISTERS have ordered an inquiry al’s office told City A.M. an inquiry George Osborne has vowed to stick to his deficit-cutting strategy Picture: REUTERS Pictures Alice Hepple into the running of the Serious Fraud would be “useful”. Office following the collapse of a “There is no statutory requirement Commercial string of major investigations. for the SFO to be inspected but it is Sales Director Jeremy Slattery The review, which will begin next sensible for HMCPSI to undertake one. Britain defiant on triple-A Commercial Director Harry Owen month, will be carried out by the head Inspections are routine for many crim- Head of Distribution Nick Owen of the Crown Prosecution Service inal justice agencies.” Inspectorate and will look at SFO cases The SFO has dropped several cases ▲ POLITICS check” that underlines the urgency of Distribution helpline and how it chooses investigations. over the last two years including the debt crisis, saying: “Britain cannot If you have any comments about the distribution BY JULIET SAMUEL of City A.M. Please ring 0207 015 1230, or email Dominic Grieve, the attorney-gener- probes into failed hedge fund waver.” [email protected] al, ordered the probe following sus- Weavering Capital, AIG Financial THE GOVERNMENT is highly confi- But the Treasury’s confidence will tained criticism of the SFO. In Products’ UK operations and fraudster dent that Britain will keep its triple-A surprise those who think Britain Editorial Statement December it was forced to hand back Bernard Madoff’s UK firm. rating despite Moody’s warning there needs to cut faster. Backbench Tory MP This newspaper adheres to the system of documents seized in a dawn raid on is a 30 per cent chance of a down- John Redwood said: “Even after the self-regulation overseen by the Press Complaints Vincent Tchenguiz’s offices, part of its SFO, whose leader grade, according to a person familiar action [the government] is proposing Commission. The PCC takes complaints about the probe into the collapse of Kaupthing. Richard Alderman with Treasury thinking. to take they’re still going to be adding editorial content of publications under the Editor’s Edward Garnier, the solicitor-gener- The source said there is “no expecta- £550bn to the debt... and that’s if Code of Practice, a copy of which can be found at steps down in April, has www.pcc.org.uk al, and Mike Fuller, the head of the tion” of an actual downgrade and it is everything goes well.” come under scrutiny for Printed by Newsfax International, CPSI, are expected to visit the SFO business as usual, despite the more Markets took Moody’s decision in Beam Reach 5 Business Park, today. Richard Alderman, director of its investigations cautious official line. Publicly George their stride yesterday, with gilt yields Marsh Way, Rainham, Essex, RM13 8RS the anti-fraud body, retires this year Osborne called the move a “reality barely moving. WHAT THE OTHER PAPERS SAY THIS MORNING

BoCom from 20 per cent if given regu- latory approval or increase its main- land China branch network from 110 PRESSURE RISES ON PRIVATE EQUITY to about 800. CUPID DRAWS BACK ITS BOW FOR ROW OVER LUTON AIRPORT EXPANSION MF TRUSTEE WILL SHARE DOCUMENTS BOSSES’ TAX MATCH MADE IN HEAVEN PLANS The trustee overseeing bankruptcy Pressure is rising across the globe to FACEBOOK SET FOR SECOND LARGE Cupid, the online dating company Luton Borough Council has been proceedings of MF Global Holdings raise taxes for private equity bosses, SHARE SALE TO MEET $5BN TAX BILL behind flirt.com and benaughty.com, threatened with a £300m legal bill if agreed to hand over to federal investi- with German and Swedish authori- Facebook faces a requirement to raise announced that it had secured a deal it tries to ditch the operator of its air- gators thousands of documents relat- ties pushing for legislative changes as much as $5bn through an extra with Brightsolid, part of Dundee- port. A row has broken out between ed to the securities firm's final days. and a leading US pension fund share sale late this year to cover a tax based publisher DC Thomson, to the council, which wholly owns Luton The move ends a standoff with inves- investor calling the 15 per cent rate in bill for its employees, or as much operate the Friends Reunited dating airport, and Spanish operator Abertis tigators and regulators that some America “indefensible”. again as the minimum amount it has website. Friends Reunited Dating is over ambitious plans to at least dou- people said was holding up the probe. already said it plans to raise initial run as a separate business from the ble passenger numbers to 18m a year. HSBC SETS TARGET OF 800 BRANCHES public offering in May. Friends Reuited social network. FAKE CANCER DRUG FOUND IN US IN CHINA MP WARNS AGAINST INVESTING IN The maker of the widely used Avastin HSBC is aiming to increase its pres- OFFICE SPACE DEALS SURGE IN CITY CAMERON TO CRACK DOWN ON THE RUSSIA cancer drug is warning that a coun- ence in mainland China through a A surge in demand for premises for SCANDAL OF BINGE DRINKING A former minister for Europe, terfeit version of the medicine has big expansion of its branch network technology companies helped drive David Cameron will use a hospital Labour’s Denis MacShane, has urged been found in the US. Testing of coun- or by raising its stake in Bank of the uptake of new office space in visit to signal a crackdown on cheap the Government to attach “health and terfeit vials of Avastin revealed that Communications. Stuart Gulliver told areas around the City of London to its alcohol today as he vows to confront safety” warnings to promotional the product didn’t contain the active the FT he wanted his bank either to highest level since the start of the Britain’s growing “scandal” of drunk- material that encourages businesses ingredients in Roche’s intravenous substantially lift its holding in financial crisis. enness. to invest in Russia. drug, according to its Genentech unit.

For the best jobs visit: WWW.CITYAMCAREERS.COM CITYA.M. 15 FEBRUARY 2012 News 3 Stratford shines Rothschild’s as Westfield rivals to take sells small malls ▲ PROPERTY AUSTRALIAN developer Westfield hailed the “exceptional” performance fight to board of its Stratford shopping centre last night as it outlined plans to invest in new malls this year and in 2013. The east London site, next door to ▲ MINING The Indonesian co-owners of the Olympic park, received more than BY JULIET SAMUEL Bumi have called for a shake-up of 13.6m shopping visits in its first 14 the board that would see Rothschild weeks from opening to 31 December, NAT Rothschild will have to affirm and four other directors kicked off, at a time when Britain’s high streets his loyalty to the FTSE 250 miner but agreed to settle the row behind are struggling with lower consumer Bumi in order to get the full support the scenes after their initial move spending. of its board after rival shareholders sent Bumi’s share price tumbling. Westfield also announced the sale in the company dropped a call for an The shift came after two inde- of its stakes in three shopping centres emergency investor vote to oust pendent non-executive directors, in Britain, thought to be Tunbridge him. Julian Horn-Smith and Lord Wells, Guilford and Belfast, for Rothschild is likely to lose his title Renwick, met with the disgruntled A$240m (£163.6m). of co-chairman to new Indonesian Bakrie Group in Jakarta yesterday, The group, which owns the shareholder Samin Tan in March, which owns 23 per cent of the com- Westfield London mall in Shepherd’s but will not have to face a sharehold- pany and 15 per cent of the voting Bush, said net property income rose 36 er vote after his rivals were persuad- rights. per cent in Britain, compared to eight ed to raise the matter at board level per cent in Australia and New Zealand. in “the best interests of Bumi Plc and ANALYSIS l Bumi PLC It also announced plans to free up its shareholders”. 780 P 767.50 cash by forming a $4.8bn joint venture Sources in London and Jakarta 14 Feb with Canada Pension Plan Investment said that the Bakries and independ- 770 Board for 12 malls in the US. ent directors will seek assurances Westfield reported funds from oper- from Rothschild that he is commit- 760 ations (FFO), an industry measure of ted to repairing relations and will 750 core operating profits, of A$1.49bn, in not repeat his actions of last line with an average FFO estimate of autumn – or do anything similar – 740 A$1.48bn. when he published a letter The developer also said it will begin criticising the firm’s management between A$1.25bn and A$1.5bn of before sending it to the board. 8 Feb 9 Feb 10 Feb 13 Feb 14 Feb Nat Rothschild will not have to face a shareholder vote Picture: GETTY developments over the next two years. 4 News CITYA.M. 15 FEBRUARY 2012 RBS Insurance to be renamed Direct Line in advance of sale

▲ INSURANCE “This is an important, symbolic RBS Insurance, which also operates step for the group as we move under the Churchill, Privilege, and BY JAMES WATERSON towards having a distinct identity Green Flag brands, returned to profit RBS Insurance is to be rebranded as ahead of the planned divestment in the first half of 2011 after soaring Direct Line Group, after the firm’s from RBS Group,” said Paul Ceddes, bodily injury claims pushed it £295m best-known consumer brand, as part chief exec of Direct Line Group. into the red in 2010. of the preparations for the division’s RBS aims to sell a minority stake The company has focussed on sale. through an initial public offering in derisking its order book and growing The bank was ordered to dispose of the second half of 2012, followed by the business to ensure the highest its insurance business as part of the another sale in 2013, which will take possible price from potential buyers. conditions attached by the European its holding down to below 50 per Last month the division was fined Union when it approved state aid cent, while remaining open to offers £2.17m by the FSA for altering cus- given to RBS Group in 2008. for the business from other insurers. tomer documents.

The worldwide insurance industry is expecting a hit of $15–20bn from the Thai floods Lloyd’s losses from Thailand reach £1.4bn

▲ INSURANCE steadily as receding flood waters allow loss adjusters to gauge the dam- BY JAMES WATERSON age more accurately. LLOYD’S of London has estimated its The cost to insurers has also been net claims from last year’s Thai floods inflated by a rash of business inter- will hit $2.22bn (£1.4bn), the third ruption claims after the floods dis- biggest loss in the market’s history. abled factories operated by major The initial estimate is based on a Japanese and US companies, trigger- projected worldwide cost to the insur- ing a shortage of components in the ance industry of $15bn–20bn and car and electronics industries. could change, but Lloyd’s is financial- The floods will rank as Lloyd’s ly strong enough to cope according to third-biggest loss in absolute terms, chief executive Richard Ward. surpassed only by Hurricane Katrina “The Lloyd’s market is as well capi- and the September 11 attacks. talised as it has ever been,” he said in Although the market does not a statement. “While claims from detail how individual members are Thailand could still evolve over time, affected, many insurers have already paying these claims is within the nor- announced a loss for 2011. One syndi- mal course of business for Lloyd’s.” cate, Tokio Marine 1880, has already The floods, Thailand’s worst in 50 announced a $700m loss – almost a years, began last July and inundated third of the Lloyd’s total. large swathes of the country before The insurance industry had a finally subsiding in December. dreadful 2011, suffering from floods Estimates of the insurance hit, ini- in Australia and earthquakes in New tially put at about $10bn, have risen Zealand and Japan. Marsh & McLennan insurance broker beats profit predictions

▲ INSURANCE Total revenue rose four per cent to $2.9bn. THE PARENT company of insurance Most of the increased profit was a broker Marsh yesterday beat expecta- result of improved income from the tions to announce an improved firm’s core business. fourth-quarter profit. Quarterly revenue at Marsh, the Net income at Marsh & McLennan, group’s main insurance business, the professional services group that grew six per cent to $1.37bn. includes the world’s second-largest Income from consulting – which insurance broker, rose to $256m includes the Mercer and Oliver (£163m), compared with $203m a Wyman businesses – was up three per year ago. cent to $1.3bn.

6 News CITYA.M. 15 FEBRUARY 2012 Carlyle cashes in with M&A deals up by 10 per cent £650m sale of Talaris during last year ▲ PRIVATE EQUITY we were confident in the continued popular use of cash and subsequent ▲ M&A PRIVATE equity house Carlyle Group increased global demand for efficient provided a ray of light for the buyout cash handling solutions by financial A STUDY of M&A activity in Europe, industry yesterday when it agreed to institutions.” Paul Volcker has defended his controversial prop trading rule Picture: GETTY the Middle East and Asia has revealed sell cash-counting equipment firm Burgess previously led Carlyle’s that year-on-year deal numbers were Talaris to a Japanese rival for £650m. team on the £1bn acquisition of road- up 10 per cent during 2011, with the Glory, Japan’s largest money-han- side rescue firm RAC from Aviva last aggregate deal value increasing by dling machine maker, has agreed to year. Volcker hits back as critics one per cent. buy Talaris in its largest acquisition so Glory will use cash and bank loans According to research by far. It marks a quick exit for Carlyle, to pay for the Talaris acquisition. Mergermarket and Merrill DataSite, which bought the Basingstoke firm, Japanese companies typically have the year was split between an encour- then known as De La Rue Cash higher cash reserves than their over- attack controversial rule agingly busy first half and a second Systems, for £360m in September seas rivals. half slump in activity triggered by the 2008 at the height of the financial cri- The deal gives it a greater interna- ▲ REGULATION Eurozone debt crisis and political sis. tional reach because of Talaris’ global BY ELIZABETH FOURNIER Association (IMA) is worried that the upheavals. Since then the US group has re- distribution and maintenance service rule’s definition of a covered fund Mergermarket’s Heat Chart, which named the business and grown it by network and a large customer base. BANKS and trade associations have could mean it will hit UK investment. tracks prospective company sales, entering new markets such as Brazil. Hirokazu Onoe, president of Glory, filed hundreds of letters outlining “This would unreasonably limit indicates the second half of 2011 saw Talaris aims to achieve a profit before said: “Talaris has demonstrated strong their objections to the Volcker rule, investment into non-US funds,” said an 18 per cent reduction in the num- tax, interest, depreciation and amorti- performance in recent years despite with UK groups adding their concerns IMA director Julie Patterson. ber of “company for sale” stories as sation of £73m for the year ending in the challenging market environ- on the rule’s international impact. Paul Volcker, who proposed the compared with the first half. March, compared to £55m in the year ment.” The aim of the rule, which comes restriction back in 2009, jumped to its Leading sectors for deal making just before it was bought by Carlyle. Japanese companies’ cash pile into force in July, is to stop US banks defence in an open letter posted on the included technology, consumer goods Andrew Burgess, Carlyle managing amounted to 5.8 per cent of GDP in carrying out proprietary trades if they US regulator’s website yesterday. He and healthcare. director, said: “Talaris is an outstand- the third quarter of 2011, compared also own private equity or hedge claimed prop trading was for the “ben- The outlook for 2012 varies wildly ing example of a company that deliv- with 2.7 per cent in the US and one funds, by banning them from invest- efit of limited groups of highly-paid according to country, with Germany ers strong growth through innovation per cent in Europe, according to UBS ing in so-called covered funds. employees”, and should never be given expected to recover strongly as the and excellence in execution. In 2008, Securities. But the Investment Management government support. Middle East suffers from instability. Buyers circle Misys as deadline looms

▲ TECHNOLOGY of FIS, whose offer to buy Misys fell are enticed by a rival bid. BY LAUREN DAVIDSON through last summer. Under the current terms, Misys David Johnson, an analyst at shareholders would own 53.9 per MISYS shares jumped six per cent Northland Capital Partners, told cent of the combined company. to 308.4p yesterday on reports that City A.M,: “The deadline from the the banking software provider has announced tie-up with Temenos ANALYSIS l Misys PLC sparked interest from potential will rouse attention – once the two p buyers in the wake of its proposed businesses are combined it’s a 320 merger with Temenos. much larger body to try to swallow. 310 308.40 No offers are on the table yet, “But I would suggest, given the 14 Feb but potential acquirers have until 6 rapid pace of the merger, that 300 March to declare interest in the other bidders have probably

British financial software maker. missed their opportunity.” 290 Bids at this stage are expected to Temenos could lose out if Misys’ come from the private equity area, shareholders, who have so far been with some looking in the direction lukewarm to the merger proposals, 8 Feb 9 Feb 10 Feb 13 Feb 14 Feb MEET THE ADVISERS

BARCLAYS CAPITAL @ MATTHEW SMITH

Barclays Capital is advising Misys through this deal. The team is led by London frontman Matthew Smith, a former employee of Citigroup and now head of UK M&A at BarCap. Heading the New York team are Lehman @ Brothers alumni Michael Carter and Erik-Jaap Molenar. JP Morgan Cazenove’s corporate THE BEST ROLES NEED finance managing director Andrew THE BEST CANDIDATES. Hodgkin and vice chairman Mark Breuer are also advising Misys. New from City A.M., we bring you the latest Temenos is taking financial advice @ from a team at Lazard, headed by ǁĂLJƚŽĮŶĚƚŚĂƚƉĞƌĨĞĐƚƌŽůĞ͘KƵƌŶĞǁǁĞďƐŝƚĞ ƉƌŽǀŝĚĞƐ>ŽŶĚŽŶƉƌŽĨĞƐƐŝŽŶĂůƐǁŝƚŚĂĐĐĞƐƐƚŽ Cyrus Kapadia and Giles Corner in ƚŚĞ ŵŽƐƚ ƐŽƵŐŚƚ ĂŌĞƌ ƉŽƐŝƟŽŶƐ͕ ƐŽ ŝĨ LJŽƵ͛ƌĞ London. Kapadia has been at Lazard ůŽŽŬŝŶŐƚŽŵĂŬĞƚŚĂƚĐĂƌĞĞƌŵŽǀĞ͕ŵĂLJďĞŝƚ͛Ɛ since 1997 and is now deputy head its ƟŵĞƚŽƐƚĞƉƵƉ͘hƉůŽĂĚLJŽƵƌsΘŐĞƚŬŶŽǁŶ͘ UK investment banking department. Lazard’s Rolf Bachmann is advising MORE NEWS in Zurich. ONLINE WWW.CITYAMCAREERS.COM Temenos also has Sumit Pandey www.cityam.com from Morgan Stanley at hand. CITYA.M. 15 FEBRUARY 2012 News 7

Fuels Restaurants High inflation 5.3% 3.5% forces King to New cars Booze explain again 0.7% 3.1%

▲ UK ECONOMY is at its lowest rate since November BY TIM WALLACE 2010, it is still well above its two per CITY VIEWS: HOW DAMAGING WOULD IT BE FOR GEORGE OSBORNE IF THE cent target, forcing King to send the BANK of England governor Mervyn 14th letter of his time at the head of UK LOST ITS TRIPLE-A RATING? Interviews by Kasmira Jefford King has been forced to write his ninth the Monetary Policy Committee. consecutive letter to the chancellor to He said the VAT rise and jumps in ROB HUNT | NEED TO KNOW NEWS SHAUN GORVIN | BNP PARIBAS REAL ESTATE explain why inflation is still so far commodities prices, blamed for high above its two per cent target. inflation in previous months, had now Inflation fell to 3.6 per cent on the largely fallen out of the calculation, “I am still amazed that people take heed to “I don't think it would be damaging to consumer price index (CPI) in January, and that the Bank of England expects what the ratings agencies say after 2008. I him and I think it is unlikely we will lose the Office for National Statistics inflation to drop to two per cent by the revealed yesterday – down from 4.2 end of the year. think a downgrade could affect the UK globally the rating immediately anyway. Osborne per cent in December and 5.2 per cent Economists took the forecast of but everyone is in the same boat. The inherited these problems. He is in a in September, largely thanks to last lower inflation as a hint that more chancellor and the coalition government tough situation and has got to keep the year’s VAT rise falling out of the fig- quantitative easing may be on the way are doing what they can.” market's confidence.” ures. in May, once the current £50bn of gilt Items like alcoholic drinks, meals in purchases has been completed. restaurants, cars and fuel all increased The letter also stressed “there is a DEAN RICHARDSON | SSP much more slowly than last year limit to what monetary policy can because of the VAT effect, dragging achieve when real adjustments are “It would damage Osborne’s personal credibility but more importantly it could have a negative impact on external down the headline rate of inflation. required,” continuing King’s argu- The cost of living, measured on the ments from recent speeches that investment coming into the UK economy. Our cost of borrowing could also increase as a result. However, I don’t think a retail price index (RPI), fell from 4.8 banks should retain earnings to downgrade to our triple-A rating is likely to happen.” per cent to 3.9 per cent, and the tax bolster balance sheets and the govern- and price index (TPI) fell from 4.5 per ment should implement supply side In association with RateSetter: A better way to Save and Borrow, Peer to Peer cent to 3.6 per cent. reforms to raise future output as debt www.RateSetter.com Customer Phoneline: 08442490115 However, even though CPI inflation is still too high relative to GDP. * These views are those of the individuals below and not necessarily those of their company Free for

Grey’s Anatomy Coming March 3 months © ABC Studios Manchester City v Fulham True Blood 4

Pick your mix of TV, broadband and calls. Virgin Media: TiVo® Service

+ + ++ ++

£7a month £14.50a month £20a month £44.50a month F Over 75 channels with Sky1, Sky Living, plus F Fast and reliable fibre optic broadband F Over 75 channels with Sky1, Sky Living, plus F Over 175 channels and Catch Up with 4oD Catch Up with 4oD and BBC iPlayer on your TV that’s faster than the UK averagev Catch Up with 4oD and BBC iPlayer on your TV and BBC iPlayer on your TV F 6 amazing HD channels at no extra cost F New Virgin Media Super Hub gives our best and F 6 amazing HD channels at no extra cost F 23 HD channels like Sky1 HD and ESPN HD F New Sky Anytime – a pick of the best Catch Up fastest wireless connection around your home F New Sky Anytime – a pick of the best Catch Up F TV and Music On Demand – instant access to a TV from Sky, ready when you are F Unlimited usage as standard so you can TV from Sky, ready when you are vast library of entertainment F New TV On Demand – instant access to a vast download and browse as much as you like^ F New TV On Demand – instant access to a vast F New Sky Anytime on Virgin Media library of entertainment F Unlimited weekend calls to UK landlines, library of entertainment F Superfast up to 30Mb broadband – 4x faster F Unlimited weekend calls to UK landlines, 0870 numbers and Virgin Mobile phonesΔ F Fast and reliable fibre optic broadband that’s than the UK averagev 0870 numbers and Virgin Mobile phonesΔ faster than the UK averagev F Unlimited usage as standard so you can F New Virgin Media Super Hub gives our best and download and browse as much as you like^ fastest wireless connection around your home FNew Premium free for 6 months F Unlimited usage as standard so you can F New Virgin Media Super Hub gives our best and download and browse as much as you like^ fastest wireless connection around your home F Unlimited weekend calls to UK landlines, F Unlimited weekend calls to UK landlines, 0870 numbers and Virgin Mobile phonesΔ 0870 numbers and Virgin Mobile phonesΔ

All prices are when you take a Virgin Phone line for £13.90 a month. Why not add TiVo? Pause, record and rewind live TV for just £3 a month. Standard installation fee applies. Already with us? Add TV or broadband and you too can get 3 months free. Limited time offer, call today New 12-month contract required. visit virginmedia.com/bundles 0800 952 0844 or pop in store today

VIRGIN MEDIA LINE RENTAL £13.90 A MONTH. INSTALLATION FEE (£49.95) APPLIES. DUE TO THE POPULAR DEMAND FOR OUR TIVO SERVICE, OUR NORMAL INSTALLATION TIME OF 7-10 DAYS MAY BE LONGER. RED BUTTON FUNCTIONALITY WILL BE COMING IN THE FUTURE. SERVICES AVAILABLE IN VIRGIN MEDIA CABLED STREETS ONLY. Subject to network capacity, status and credit checks. 18-MONTH MINIMUM TERM CONTRACT APPLIES. If you cancel during your minimum contract period an early disconnection fee will apply. This offer requires you to pay by Direct Debit and use eBilling. If you prefer not to pay by Direct Debit, you will incur a monthly £5 payment handling fee payable to Virgin Media Payments Ltd. If you would like paper bills, the fee is £1.75 a month. Equipment remains property of Virgin Media. Advertised prices are at 1st April prices, so actual billed prices in March may be slightly lower. 3 months free: Offer ends 31/03/12. May not be used in conjunction with any other offer unless stated by Virgin Media. New customers: When you take a bundle containing TV M+ (or higher tier) with a phone line, Broadband L (or higher tier) with a phone line or a bundle combination of at least TV M+, Broadband L, Phone M with a phone line you will get the first 3 months of that bundle free. 3 months free discount not applicable to Phone L or XL, line rental, premium channels or £5 TiVo monthly charge. Existing customers: Non-TV customers adding TV M+, L or XL will get 3 months free on that service. Non-BB customers adding BB L, XL or XXL will get 3 months free on that service. All customers must have, or add, a phone line. Virgin Media reserves the right to withdraw or amend discount if you change any part of your offer package. Standard prices apply after first 3 months (phone, broadband, TV bundles currently start at £20 a month). TV: HD TV set and V HD Box or TiVo box connected with HDMI cables required for HD channels. Once purchased, all chargeable On Demand content must be viewed within 48 hours. On Demand movies are pay-per-title. Sky Anytime and TV On Demand content you receive depends on which TV Package you take. Music On Demand is included with TV Size: XL or pay-per-video with TV Size: M+ and L. Catch Up TV content available for 7 days after broadcast. TiVo service: The monthly TiVo charge is £5 per TiVo box on top of your M+, L or XL package. New 12-month minimum term contract applies for existing customers. TiVo is not available on TV M. Broadband: vAll average download speed data comes from Ofcom’s review of UK broadband speeds published in July 2011, based on Ofcom May 2011 tests. UK average download speeds. ^Acceptable use policy applies. Traffic management operates from 4pm to 9pm and 10am to 3pm to ensure consistent user experience. Phone: Full details of call charges/connection fees at virginmedia.com/callingcosts. $Zero-rated tariff applies to the first hour of direct-dialled calls to numbers beginning 01, 02, 03 and 0870 (not other numbers such as those beginning 084 and 070), starting within the relevant period. Unlimited calls to Virgin Mobile phones in the UK are included if mobile numbers called have been active in the previous 90 days (i.e. a chargeable call, text or data session has been made). Call categories are aligned with your home phone call plan. Re-dial before 60 mins to avoid call charges. General: All prices include VAT. Information correct at Feb 2012. Calls may be monitored. Payment may be required in advance. Further Legal Stuff applies. Go to virginmedia.com for details. Virgin Media Limited registered in England (no. 2591237). Registered office Bartley Wood Business Park RG27 9UP. 8 News CITYA.M. 15 FEBRUARY 2012

Business school eyes ▲ PROPERTY Murdoch puts his BY KASMIRA JEFFORD

WESTMINSTER City Council is close town hall for campus to agreeing the lease of Old top lawyer onto Marylebone Town Hall, the heritage building where former Beatles Sir Paul McCartney and Ringo Starr both married, to London Business School. News Corp panel The council, which put the 1920s building on the market in 2010, said

it had entered into exclusive negoti- ▲ ations with London Business MEDIA The small committee is working School, without disclosing the price BY HARRY BANKS alongside up to 100 personnel from or terms of the potential lease. top London law firms as well as foren- Under the deal, London Business RUPERT Murdoch (pictured) is sic advisers and computer experts School would take up most of the working to stem a growing rebel- searching through more than town hall’s 100,000 square feet in lion within his newspaper busi- 300m emails, expense claims, 2015 after the building has been ness, as he beefs up the group’s phone records and other docu- renovated and refurbished. oversight committee and prepares ments. Jonathan Glanz, the council’s cab- to fly back to the UK. But it might not be inet member for housing and corpo- The company’s new top enough to deflect mount- rate property, said the deal “will not corporate lawyer Gerson ing criticism of his papers only create an educational facility Zweifach has joined the including the Sun, which fit for the 21st century in one of management and stan- saw five of its journalists Westminster’s most recognised dards committee, a arrested last week. buildings, but will provide an oppor- source familiar with Former Sunday tunity for much needed refurbish- the company said Times editor Andrew ment works to take place.” yesterday. Neil told Reuters: “The The leasehold would expand the The panel was set Sun has turned school’s footprint beyond its cam- up at the height of against Rupert pus at Sussex Place in Regent’s Park, the furore over phone Murdoch. designed by architect John Nash. hacking and was “He has put in designed to rescue the place things he can- company’s reputation. not stop.” @Zynga swings to loss Same phone, best network. but revenues surge

Just £8 a month ▲ TECHNOLOGY great momentum in mobile and ings. BY PETER EDWARDS advertising and ended the year with Zynga publishes free games and a strong pipeline of new games.” makes money from selling virtual ZYNGA, the US developer of games It posted a $435m fourth quarter items, such as tractors and weapons, for social networking sites, fell to a net loss, or $1.22 a share, however, to be used by players. It floated at @$435m (£277m) quarterly loss last contrasting with net income of $10 per share in December, raising night despite beating Wall Street $43m, or five cents a share, a year $1bn. revenue expectations in its first earlier. Zynga’s shares were trading at results as a public company. Since then Zynga has gone public $13.93 after hours, down 2.9 per Revenue soared 59 per cent to and admitted it relies on Facebook cent, after closing at $14.35 on the $311.2m, edging past analysts’ fore- for 90 per cent of revenues. Similarly Nasdaq. casts of $301.08m, as the FarmVille Mark Zuckerberg’s firm declared in creator reported a 13 per cent rise in an SEC filing this month that 12 per Zynga chief executive “daily active users” to 54m in the cent of its revenue comes from the Mark Pincus hailed a final three months of last year. gaming company. @ Founder and chief executive Mark The firm said costs rose dramati- record year for the Pincus said: “Zynga set new records cally to $797.8m, with $510m in pay- company despite a in the year in terms of audience size, ments linked to employee stock fourth quarter net loss revenues and bookings. We saw options helping push up its outgo- FRC to look into tougher Berenberg set SIM Only on great value 12-month plans to increase its SIM prices on a £8.00 £8.00 comply or explain policy 12-month contract a month a month staff in the City Mins to all UK mobiles & UK 300 150

landlines (starting 01, 02, 03) ▲ mins mins ▲ CORPORATE GOVERNANCE noted a small number of firms who BANKING Standard UK texts Unltd Unltd texts texts BY JAMES WATERSON provided inadequate justifications for ignoring certain clauses. GERMAN boutique investment bank UK mobile internet – 100MB THE FINANCIAL Reporting Council Under the “comply or explain” and wealth manager Berenberg has (FRC) has issued research suggesting rule, if a company fails to meet a pro- boosted its headcount in London by Wi-Fi access with – 750MB companies should provide greater vision of the code then it must one third, bucking the gloomy trend BT OpenZone within UK detail when they choose to exempt explain the reasons for this decision. of lay-offs in the City. themselves from corporate gover- But the report said that some of The bank is hiring investment nance procedures. these justifications “can come across bankers and analysts, against the Call 08080 99 00 00 The regulator, which has responsi- as an assertion of difference rather industry trend of downsizing, which bility for promoting the UK than a full explanation of why the has dented many 2011 bank results. Search online for Pick up and Corporate Governance Code, will company in question has chosen to Lenders across Europe, Asia and the ‘Vodafone press’ set up in store now consider the proposals as part deviate from agreed best practice”. US have slashed well over 130,000 jobs www.cityam.com of an ongoing process to revise its By defining a “substantive expla- since the middle of last year in cost- Lines open 7 days a week, 8am-8pm, except bank holidays. guidelines. nation” and increasing pressure on cutting drives. MORE NEWS The research noted that the vast companies to follow suit the FRC Berenberg, in contrast, plans to hike Terms apply. Subject to credit check. Call us free on your landline; standard network charges apply to all calls made from a mobile phone. ONLINE majority of UK companies abide by hopes to avoid the need to introduce its analyst headcount by 30 to 100 over all the provisions in the Code but additional regulation. the next two years, the lender has said. CITYA.M. 15 FEBRUARY 2012 News 9 Morgan Stanley IHG banks on left with stock China to spur after TDC deal ▲ CAPITAL MARKETS BY DAVID HELLIER Chief executive Richard Solomons is seeking further growth in China US INVESTMENT bank Morgan its expansion Stanley was last night reported to be left holding a sizeable percentage of ANALYST VIEWS: IS IHG WELL POSITIONED the share offering in the Danish phone group TDC, after its private ▲ By Kasmira Jefford LEISURE the full-year, with the US up 7.9 per FOR GROWTH THIS YEAR? equity owners offloaded £626m BY KASMIRA JEFFORD cent, Europe up 4.7 per cent and worth of shares. Greater China storming ahead with WYN ELLIS | NUMIS Morgan Stanley, the lead arranger INTERCONTINENTAL Hotels Group, 10.7 per cent. Political unrest meant for the share issue, increased the size the world’s largest hotel operator, its Asia, Middle East and Africa arm of the offering by 50 per cent from said it was is looking to emerging only edged up 0.9 per cent. 2011 preliminary results were encouraging with underlying earnings what was originally planned, but markets and especially China to drive The hotelier boosted its room before interest and tax of $559m vs. consensus of $542m. Net debt at year end ended up struggling to distribute the future growth as a recovery in the US count by two per cent worldwide to was just $538m and we believe that after the disposal of the [Intercontinental full amount, say sources close to the helped the group post a surge in full- 658,000 rooms in 4,480 hotels. It has “New York] Barclay as much as $1bn could be returned to shareholders. deal. year profits. a further 1,144 hotels in its global “The lack of any message that they The owner of brands including pipeline, with over a quarter of those were covered suggests the bank was Holiday Inn and Crowne Plaza said being built in Greater China. KEITH BOWMAN | HARGREAVES LANSDOWN ” left with a position,” said one source. US and Chinese demand helped boost The group also upped its full-year Morgan Stanley declined to com- profits by 26 per cent in the year to 31 dividend by 15 per cent to $0.55. ment on its final position. “Certain December to $559m (£356m), offset- Shares fell 2.1 per cent to 1,372p. In all, the group remains well positioned. The London Olympics is expect- investors in NTC have sold approxi- ting a slowdown in trading in the ed to further support the group’s geographical footprint while management confi- mately 128.7m shares in TDC in an Eurozone. ANALYSIS l Intercontinental Hotels dence in the outlook has been underlined by a 15 per cent increase in the dividend accelerated bookbuilt offering,” the Revenue per available room 1,372.00 “payment. For now...market consensus opinion continues to denote a buy. bank said yesterday. (revpar) — the key industry metric — 1,430 p 14 Feb The private equity groups sold fell by 0.2 per cent in Europe in the 1,420 about 15 per cent of TDC, cutting last quarter of 2011. 1,410 their stake to about 43.3 per cent. 1,400 KARL BURNS | SHORE CAPITAL ” However, Tom Singer, IHG’s chief Share sales, known as block trades, financial officer, said some of the 1,390 have surged recently, led by the “softness” seen at the end of last year 1,380 Following today’s update, we have upgraded our full year 2012 fore- $1.7bn stock offering in January from had been reversed in January, with 1,370 casts by around five per cent although, despite the strong update, we retain our Repsol YPF SA, Spain’s biggest oil com- revpar rising six per cent for the 1,360 sell recommendation, highlighting the strong share price performance this year to pany. And Abertis, Spain’s biggest toll- group overall. “date, limited visibility on future revenue streams and its full rating. road operator, sold part of its stake in IHG revpar rose by 6.2 per cent over 8 Feb 9 Feb 10 Feb 13 Feb 14 Feb ” Eutelsat in January. 10 News CITYA.M. 15 FEBRUARY 2012 Investor morale in Germany hits Greek recession is highest level near to entering its since last April fifth straight year ▲ GERMAN ECONOMY

GERMAN analyst and investor senti- ▲ EUROZONE sion – but entering it has already ment leapt to its highest level since BY TIM WALLACE caused one,” said Jamie Dannhauser April 2011 in February, smashing from Lombard Street Research. expectations and sending the euro to THE GREEK economy declined “It is not remotely clear that the a session high, in a sign that sharply in the final quarter of 2011, upfront costs of a euro exit would Europe’s bulwark economy is pick- official figures confirmed yesterday have been materially higher than ing up pace again. as the country enters its fifth year the damage currently being caused; The widely-regarded monthly ZEW of recession. and there are good reasons to poll of economic sentiment jumped GDP shrank by 6.8 per cent in believe the country’s longer-term for the third month in a row, rising 2011, taking output 16 per cent outlook would be improved.” to 5.4 from -21.6 in January. This was below its pre-recession peak and However, Greek Prime Minister the first time the index turned posi- close to the record for the deepest Lucas Papademos is still ploughing tive since May. slump of modern times – Latvia’s 24 on with austerity and bailout pack- “The economic weakness at the per cent following the crisis in ages in an effort to keep the country turn of the year is starting to look 2008. from reverting to the drachma. more and more like it was just a Such gloomy data with no sign of Meanwhile the Portuguese econo- mere dent,” said Rainer Sartoris at any end in sight is prompting my contracted by 1.3 per cent on the HSBC Trinkaus. “The economy is sta- Lucas Papademos increasing numbers of economists quarter and 1.5 per cent in 2011 as a bilising.” is battling to sort to argue the country would be bet- whole. The ZEW data sent the euro to a out Greece’s ter off out of the Eurozone. Spain’s 0.3 per cent contraction session high against the dollar and finances “European politicians, including in the final quarter of 2011 has also German Bund futures to a session Picture: GETTY those in Greece, say leaving the cur- been blamed, as it is Portugal’s low. rency union would lead to depres- main export market. EU attacks big trade and budget deficits

KŝůΘ'ĂƐh<ƌĞĂŬĨĂƐƚƌŝĞĮŶŐ ▲ EUROPEAN ECONOMY share over the last decade, as well Countries with high trade BY TIM WALLACE as having a “high level of public deficits lost out in terms of price dŚĞĐƟǀŝƚLJ^ƵƌǀĞLJϮϬϭϮ debt” and “a weak public finance and cost competitiveness before COUNTRIES like the UK, France situation,” the report said. the financial crisis, the report dŚƵƌƐĚĂLJϭDĂƌĐŚϮϬϭϮͮϴ͘ϬϬĂŵͲϭϬ͘ϬϬĂŵ and Italy are being investigated by France has suffered from a “grad- argued, and large household and Herbert Smith, Exchange House, Primrose Street, London, EC2A 2HS the EU for allowing potentially ual deterioration of the trade bal- corporate debts have stunted dangerous economic imbalances to ance”, while Italy has lost growth in recent years. develop, commissioner Olli Rehn competitiveness since the mid- However, the data used comes said yesterday. 1990s, and “public debt is a con- from 2010, and the EC is only now Twelve EU countries have failed cern, especially given the weak looking to carry out further analy- Despite the signs that 2011 was a record year for investment, to address problems building up in growth performance and structur- sis with more recent data. ĞdžƉůŽƌĂƟŽŶ ĂĐƟǀŝƚLJ ĂŶĚ ƉƌŽĚƵĐƟŽŶ ďŽƚŚ ĨĞůů ĚƌĂŵĂƟĐĂůůLJ͕ their economies, Rehn said, and al weaknesses,” Rehn said. And The Treasury acknowledged the after further analysis the European Spain’s high levels of unemploy- findings, arguing that “this report providing worrying signals for the UK oil and gas industry. Commission (EC) may send them ment and post-housing boom woes underlines why the government is advice and action plans on how to will also face further investigation. right to be getting a grip of the rectify them. Rehn said that the financial cri- country’s debts”. ĂŶƚŚĞh<ŽīƐŚŽƌĞŽŝůĂŶĚŐĂƐŝŶĚƵƐƚƌLJƐƵƐƚĂŝŶŝƚƐƉŽƐŝƟŽŶĂƐ Countries in the Eurozone may sis was exacerbated by the exis- Greece, Portugal, Ireland and one of the largest industrial investors in the economy and a face fines of up to 0.1 per cent of tence of such imbalances, and that Romania will not face further GDP for allowing such problems to removing them will increase confi- action as they are already facing ŐůŽďĂů ůĞĂĚĞƌ ŝŶ ŽīƐŚŽƌĞ ƚĞĐŚŶŽůŽŐLJ ĂŶĚ ƐĞƌǀŝĐĞƐ͍  tŚĂƚ develop. dence in the financial sector and much closer scrutiny from the ŝŵƉĂĐƚ ǁŝůů ƚŚĞ ƌĞĐĞŶƚ ŝŶƐƚĂďŝůŝƚLJ ŝŶ ƚŚĞ ŝŶĚƵƐƚƌLJΖƐ ĮƐĐĂů The UK has lost export market among the wider public. European Commission. ƌĞŐŝŵĞ͕ ĐŽŶƟŶƵĞĚ ĐĂƵƟŽŶ ŝŶ ďƵƐŝŶĞƐƐ ĐŽŶĮĚĞŶĐĞ͕ ůŽǁĞƌ ƚŚĂŶĞdžƉĞĐƚĞĚĞdžƉůŽƌĂƟŽŶĂĐƟǀŝƚLJĂŶĚĂŵĞƌĞƚƌŝĐŬůĞŽĨĂƐƐĞƚ transfers have on the industry's investment plans for 2012 ĂŶĚďĞLJŽŶĚ͍tŚĂƚǁŝůůƚŚŝƐŵĞĂŶĨŽƌƚŚĞĨƵƚƵƌĞŽĨƚŚĞh<^͍ Eurozone industrial output tumbles ĞƚŚĞĮƌƐƚƚŽůĞĂƌŶĂďŽƵƚƚŚĞůĂƚĞƐƚƚƌĞŶĚƐĂƚKŝůΘ'ĂƐh<ΖƐ raising fear of economic contraction ƌĞĂŬĨĂƐƚ ƌŝĞĮŶŐ ǁŚĞŶ ƚŚĞ ĮŶĚŝŶŐƐ ŽĨ ŝƚƐ ůĂƚĞƐƚ ĐƟǀŝƚLJ Survey are revealed. ▲ EUROZONE Eurostat said, as Europe’s sovereign Eurozone’s economy since the sec- debt crisis continued to damage ond quarter of 2009 at the height OUTPUT at factories in the morale among shoppers and busi- of the global financial crisis, when ŽŽŬLJŽƵƌƉůĂĐĞŶŽǁĂƚ Eurozone tumbled in December, nesses alike. output shrunk 0.2 per cent, accord- reflecting a sick European econo- EU data out today is set to show ing to Eurostat. ǁǁǁ͘ŽŝůĂŶĚŐĂƐƵŬ͘ĐŽ͘ƵŬͬĞǀĞŶƚƐ my that probably shrank at the end the Eurozone’s economy contract- “December’s Eurozone industri- of 2011, though market watchers ed in the October-to-December peri- al production data adds to evi- Listen to experts from industry | Network | Learn | Debate | Enjoy hope it will recover this year. od last year compared to the third dence that the economy shrunk Industrial production in the 17 quarter. pretty sharply in the fourth quar- countries sharing the euro fell 1.1 With industrial production ter,” said Ben May, an economist at per cent in December from falling 1.8 per cent in the fourth Capital Economics in London, who November, official data showed. quarter, many economists expect predicts a deeper, 0.5 per cent fall On an annual basis, factory out- GDP to have shrunk by 0.3 per in GDP. sponsored by and put dived two per cent, worse than cent. In Germany, the bloc’s biggest economists’ one per cent estimate, That would be the first move economy, industrial production European Union statistics office into negative territory for the plunged 2.7 per cent in December.

12 News Towry loses a BLOOMSBURY PLANS PUSH landmark client poaching case

▲ LEGAL

INDEPENDENT wealth adviser Towry has lost a landmark case against rival Raymond James and seven former Edward Jones employees, who it had claimed had solicited clients away from the firm. The advisers joined Towry when it took over the US arm of Edward Jones in 2009, but chose to move to Raymond James rather than stay with the firm. Towry claimed the seven advisers took almost 400 clients worth more than £33m with them, breach- ing a non-solicitation covenant written into contracts during the takeover. “Having regard to the whole evi- HIGH dence in this case, the allegations against Raymond James do not with- stand scrutiny,” said Mrs Justice Cox DBE in her judgment, according to a statement from Raymond James’ law firm Faegre Baker Daniels. Towry has agreed to pay in full Raymond James’ legal costs relating to SPEED the case, which total £930,936. Zurich clinches world’s most

▲ the ranking, with Singapore gaining ECONOMICS one place to ninth spot and Seoul BY KASMIRA JEFFORD climbing nine places to 27th, high- lighting a shift away from the tradi- ZURICH has leapfrogged ahead of tionally more expensive Western Tokyo in the league table of the Europe hubs. world’s most expensive cities after Cities from the Asia Pacific region the Swiss franc’s sharp rise and its have continued to boom and now allure as a safe-haven currency for make up half of the top ten, but investors sent the cost of living soar- Western Europe still accounts for 24 ing. of the most expensive cities in the The Swiss city, which is now top 50, with 14 hailing from Asia. almost 50 per cent more expensive Asia was also home to some of the than London, has jumped from fifth cheapest cities. Three of the four place, while Geneva rose six places cheapest were in the Indian subcon- into joint third alongside Japanese tinent. These included New Delhi city Osaka, according to the and Mumbai in India, and Karachi in Worldwide Cost of Living Survey Pakistan, which was the cheapest of from the Economist Intelligence cities surveyed. Unit. The bi-annual survey from the The survey of 130 cities worldwide Economist Intelligence Unit com- showed that despite Eurozone trou- pares more than 400 individual IGINDEX.CO.UK/SPREADBET bles, German and French cities have prices across 160 products and serv- stayed relatively expensive with Paris ices such as food, transport, housing, and Frankfurt holding firm in the utilities and private schools. league table in sixth and tenth place. For example, the price of a loaf of Even though inflation levels bread has more than doubled in passed five per cent last year, a weak- London in ten years, with the cost of er pound meant London actually fell a bottle of wine rising by 50 per cent. slightly in the ranking from 15th to Taxes have also played a part, with 17th place. petrol pump prices up by over 75 per The Norwegian capital, Oslo, cent and cigarette prices by almost which was ranked the world’s most 60 per cent. expensive city only a few years ago, “Over time we have seen the price dropped two places to fifth place. of commodity driven groceries like Strong currency shifts have also bread and petrol rise substantially. propelled five Australian cities into However, less essential items have the top 20, led by Sydney and actually been falling in price recent- Melbourne in seventh and eighth ly, after rising during better econom- places. ic times,” Copestake said. “Exchange rates have been the Canada’s Vancouver has overtaken greatest influence for the Australian all US cities to become the most cost of living, with the Australian expensive in North America, ranked dollar seeing its value to the US dol- 37th. lar double in a decade,” survey editor Los Angeles was the most expen- Jon Copestake said in the statement. sive US city -- equal 42nd with Meanwhile Asian cities moved up Shanghai -- while New York was 47th. News 13

INTO INDIA

HARRY Potter publisher Bloomsbury announced yesterday it is planning to open a dedicated India business to take advantage of the 50m people in the emerging economy buying English books every year. Bloomsbury has already been operating in India for 25 years through a marketing and distribu- tion partnership with Penguin. “We are hugely enthusi- astic about this new ven- ture and are looking forward to building our presence in this growing market,” said Bloomsbury chief execu- tive Nigel Newton. The new Indian company will be led by Rajiv Beri, who has worked for publisher Macmillan in India for more than 15 years. Shares in Bloomsbury gained almost two per cent after the announce- ment yesterday, but set- tled over the day to close 0.4 per cent up at 124.5p. top spot as the DEAL EFFICIENTLY WITH IG expensive city

ANALYSIS l THE WORLD'S MOST EXPENSIVE CITIES 2012 5. Oslo 2. Tokyo (down 1 place) 6. Paris 10. Frankfurt

=3. Osaka

7. Sydney

=3. Geneva 9. Singapore IGINDEX.CO.UK/SPREADBET 1. Zurich (up 4 places) 8. Melbourne

1kg of white 1kg of white 1 litre of bread: rice: unleaded petrol: Zurich $6.15 (£3.92) Zurich $5.38 Zurich $2.26 Tokyo $7.96 Tokyo $7.76 Tokyo $1.90 Paris $6.57 Paris $3.78 Paris $2.17

London $2.26 London $4.81 London $2.15

Source: Economist Intelligence Unit 14 EDITED BY CITYA.M. 15 FEBRUARY 2012 HARRIET DENNYS Got A Story? Email [email protected] The Capitalist Follow The Capitalist on Twitter: @dennysharriet

Left: SocGen has paid compensation to two FX FX TRADERS traders fired in 2010 Picture: GETTY WIN UNFAIR Right: Coutts’ window DISMISSAL display at 440 Strand LAWSUIT

SOCIETE GENERALE traders Didier Meyer and Eric Leandri can finally attempt to resurrect their careers, after being cleared rare public appearances. But the John of allegations of unauthorised trading in Smith’s Grand National Weights Lunch at connection with a multi-billion euro The Savoy is one of them. trade with ArcelorMittal in 2009. The leisure entrepreneur and horse rac- Meyer, former global head of FX options ing enthusiast owns last year’s Grand trading, and his colleague Leandri, global National champion Ballabriggs, so he was head of FX structuring, were suspended in keen to find out how much extra lead his October 2009 and fired in March 2010 star horse will carry if its runs in this after SocGen claimed the pair had not rect our careers. We were both dedicated not invest in an old friend’s start-up mak- year’s National on 14 April – 9lbs, as obtained the correct authorisation from to SocGen and always had the bank’s and ing eco-friendly men’s underwear? announced with the weights for the other the bank’s risk department for the FX our clients’ best interests at heart.” “At times like this it is so important to 81 entrants for the steeplechase. trade that netted SocGen in excess of A statement from the bank said: support fledgling businesses,” says Brian €130m (£109m) profit. “Société Générale acknowledges the deci- Magnus, the former head of UK invest- The pair have maintained they had sion [of the court]. However, the bank wish- ment banking at Morgan Stanley, who is COUTTS COUTURE written verification of the green light to es to stress that it will remain committed using his top-level business connections COUTTS has long managed the financial proceed, and after a two-year fight to to enforcing the strict respect of rules and to market trunks made from “a revolu- affairs of creatives, and the private bank is restore their reputations, a French procedures relative to internal controls.” tionary bamboo material”. again sponsoring London Fashion Week employment tribunal on Monday found Case closed. Or is it? The Capitalist sus- “The product is great; it ticks all the after a four-season association. the traders not guilty of any wrongdoing pects there may be further litigation boxes,” evangelises Magnus. Such as a To mark the start of LFW on Friday, or unauthorised activity, awarding com- ahead, as the traders seek redress from comedy name – the range is called, in therefore, Coutts has changed its head- pensation of €100,000 to Meyer and SocGen for their two-year loss of salary tasteful manner, Got Wood. office window display at 440 Strand to an €80,000 to Leandri. and bonuses. eye-catching red crepe ballgown. Speaking exclusively to The Capitalist, Designed by the couture house Ralph & Meyer said: “It has been a long battle to HEAVY WEIGHT Russo, the skirt is hand-embroidered with clear our names, and we are delighted the BRIEF ENCOUNTER THERE ARE few occasions that can over 100 metres of hand-stitched feath- Conseil de Prud’hommes de Nanterre has WHEN YOU are an investment banker tempt reclusive tycoon Trevor ered silk chiffon flowers, which took 12 made this decision so we can try to resur- with time and money on your hands, why Hemmings (right) to make one of his couturiers hundreds of hours to complete. Meet ø Lease There’s a new way to get iPhone 4S

No upfront cost on a 12 month contract. And available to everyone

Visit any ø store

Subject to availability, status, credit check, direct debit and 12 month minimum term lease agreement. With O2 Lease the phone isn’t yours and if you don’t return it in satisfactory condition at the end of your lease you will have to pay significant charges, ask in store for details and for the terms and conditions. TM and © 2012 Apple Inc. All rights reserved. 16 News CITYA.M. 15 FEBRUARY 2012 Sibling rivalry: Samsung boss Apple iPad rumour sued by brother mill whirls despite for inheritance problems in China ▲ TECHNOLOGY

THE CHAIRMAN of Samsung is being ▲ TECHNOLOGY Kindle Fire and Samsung’s Galaxy Tab. sued by his brother for 700bn Korean BY LAUREN DAVIDSON Avid speculation, alongside Apple’s won (£397m) over an inheritance of recent record earnings, have rocketed company shares from their father. THE HUNGRILY-AWAITED iPad 3 could the group’s share price to above $500. Lee Maeng-Hee, 80, is suing Lee run on fourth generation networks However, the fate of the iPad in Ken-Hee, the 70 year old chairman of when released in the US later this year, China remains to be seen as computer the South Korean electronics compa- with top American wireless providers monitor manufacturer Proview ny, over eight million shares in AT&T and Verizon vying for the carrier Technologies, which claims to own the Samsung Life Insurance and 20 shares deal. “iPad” trademark, seeks to ban ship- in the group’s flagship division Apple is expected to announce ments of the popular tablet to China. Samsung Electronics. details of its latest tablet offering in The Taiwanese-owned company tri- Maeng-Hee claims his younger the first week of next month, with umphed in a lawsuit over Apple in brother took over the shares which some sources pointing specifically to December and is now petitioning their father – who died in 1987 – had Wednesday 7 March. retailers in China – a huge consumer held under the names of non-heirs. The tech giant does not currently market – to halt iPad shipments. The shares “should have been have any 4G devices, but the iPhone 5 – This comes as Apple yesterday apportioned to the heirs according to likely to hit the shops later this year – launched an investigation into the law”, Maeng-Hee argued in court doc- is expected to run on the new genera- working conditions of its factories, uments. tion network, although Apple con- including Foxconn in China where It is unclear why Maeng-Hee has sumers in the UK might have to wait a thirteen employees committed suicide filed the lawsuit at this time. while longer for 4G mobile devices. in 2010 amid claims the factory made A team of ten at law firm Hwawoo Rumours are also circulating about them work overtime on military-style is acting for claimant Maeng-Hee. Apple is said to be creating a seven inch iPad to rival the Kindle Fire Picture: AFP / Getty a seven inch iPad to rival Amazon’s production lines for low wages. New digital strategy can’t stop Yell’s drop

▲ MEDIA the quarter. The group marginally reduced its BY LAUREN DAVIDSON However, Yell ended the three £2.6bn net debt by £67.3m after month period with a net profit of amending covenants with lenders SHARES in Yell took a steep tumble £16.6m, considerably higher than in December, costing £22m in fees. as the directories group revealed its last quarter’s £1.6m. Its digital serv- Shares, which hovered between revenues dropped 15 per cent to ices arm grew revenues by 112 per £3 and £6 when Yell was in the FTSE £382.8m in the third quarter. cent to £35.4m, but it still accounts 100 before March 2008, fell 19 per The company, which has suffered for less than a tenth of overall sales. cent to close just under 5p. in the rise of the digital era, said rev- Despite revenues from Yellow enues from print and directory Pages online dropping almost 16 per ANALYSIS l Yell 4.87 enquiry services were down 22 per cent to £77.6m as its visitor rate 14 Feb cent to £269.8m, sending Yell’s stock declined by a quarter, combined dig- 6.20 p to its lowest point in almost three ital operations – including services 6.00 months. and directories – accounted for 5.80 Yell chief Mike Pocock said: “The almost 30 per cent of total group 5.60 deteriorating macro environment revenue, up from 26 per cent. 5.40 and a more competitive digital Total digital customers grew 10 5.20 directory market are driving a faster per cent to 945,000. 5.00 rate of directory revenue decline.” Pocock said: “We expect this 4.80 The Reading-based group lost growth to accelerate as our strategic almost 50,000 print advertisers in new products come to market.” 8 Feb 9 Feb 10 Feb 13 Feb 14 Feb Directory publisher comes up short

REMEMBER the 1997 Yellow Pages he would probably use Google this area grew by 111.8 per cent to Christmas advert? The one where rather than yell.com, the online £35.4m in the quarter, but they a little boy steps on the directory address of the Yellow Pages. still account for less than a tenth to kiss a girl under the mistletoe This is the source of the compa- of overall sales. It is too little, too because he is too short to reach ny’s woes. Printed ad sales, which late. her otherwise. These days, the still account for around 70 per Shares in the company shed 19 Yellow Pages is tiny, a shadow of cent of revenues, are evaporating per cent yesterday, valuing it at its former self, barely bigger than too quickly. Tough competition £115m – a tiny sum compared to a paperback novel. The boy in the online means it is losing ground its massive £2.6bn debt pile. advert would need six or seven here too. Visitors to its digital That’s why we think the only copies to get anywhere near his directory were down 17.5 per cent thing you should do with Yell’s belle. in the three months to the end of shares is short them. Which is Of course, these days the boy in December while revenues in this appropriate enough if you the advert wouldn’t dream of division fell by 15.7 per cent to remember that 1997 Christmas using a printed directory to find £77.6m. advert. his local plumber or locksmith. Last year, Yell pinned its falter- The boy – in fact he is now a ing hopes on a new digital strate- twenty-something year old man – gy, which sees it build websites BOTTOMLINE would search online instead, and for small businesses. Revenues in Analysis by David Crow CITYA.M. 15 FEBRUARY 2012 News 17

AVON SLUMPS TO LOSS IN TOUGH MARKET NEWS | IN BRIEF Hampson puts Music player resurrects Myspace One million web surfers have joined Myspace in the last month as the social site’s new music player generates a daily sign-up rate of 40,000. Discarded by Rupert Murdoch last June, Myspace now itself on the offers unlimited on-demand access to 42m songs, compared to Spotify’s 15m. Its success is partly thanks to connected apps with Facebook and Twitter. Pennon hit by waste business auction block Water and waste company Pennon said yesterday that it expects to report a slightly lower full-year profit at its waste management unit, hurt by a sustained drop in prices. Viridor, which provides ▲ AEROSPACE order, which will result in certain recycling and waste collection services, BY HARRY BANKS deliveries moving to fiscal-year 2013 typically brings in a third of total group instead of 2012. profit. “Viridor has experienced a reduc- AEROSPACE group Hampson The group said it was reviewing tion in recyclate prices over the winter Industries said it had put itself up the overall effects on its revenue months reflecting world economic condi- for sale yesterday, nearly three and profit in light of the ongoing tions,” Pennon said. months after saying it was consider- discussions with the customer. ing strategic options for two of its The company’s shares, which Zipcar forecasts disappoint units. have lost about 80 per cent of their Zipcar forecast disappointing first-quar- FTSE-listed Hampson has £54.9m value in the last one year, closed at ter results yesterday, as its European in debt, more than double its cur- 7.75p on Monday on the London market faces slower growth, sending the rent market capitalisation, and has Stock Exchange. Yesterday they tum- US car-sharing service’s shares down been working to refinance its bank bled 48 per cent to 4.03p, giving a more than 16 per cent. The company facilities. market cap of £21.6m. expects first-quarter net loss of $4m to The company said it appointed $5m on revenue of $58m to $60m. DC Advisory Partners and Sagent ANALYSIS l Hampson Industries Zipcar posted fourth-quarter revenues up Advisors to conduct the sales 21 per cent to $62.9m, short of forecasts. 9 p 4.03 process for the entire company. 14 Feb Hampson also said it has received 8 Brammer profits jump 41pc indicative offers for its UK-based British industrial services group BHW Components unit and Indian 7 Brammer yesterday posted a 41 per operations -- the businesses put up cent jump in full-year pre-tax profit on for sale in November. 6 BEAUTY products giant Avon yesterday reported a fourth quarter loss triggered by strong demand, and said it planned to The company’s tooling division 5 weakening demand in North America and Europe. The loss of $400,000 (£255,000) increase its final dividend. Brammer said also suffered a setback due to compared with profits of $229.5m in the final three months of 2010. Quarterly rev- 2011 pre-tax profit was £29m, up from certain testing and customer enue slipped four per cent to $3.04bn despite promotional activity from Hollywood’s £20.6m, a year ago. Revenue rose 22 approval issues in its largest tooling 8 Feb 9 Feb 10 Feb 13 Feb 14 Feb Reese Witherspoon (above). Picture: GETTY per cent to £571.5m. 18 News CITYA.M. 15 FEBRUARY 2012 Cairn triggers $3.5bn share buyback offer for investors

▲ ENERGY dend option, which has been pegged The oil explorer last month at £1.60. That represents 906.5m dropped plans to award chairman CAIRN Energy yesterday kicked off its shares. A total of 489.1m shares were and founder Sir Bill Gammell share share buyback scheme made possible sold for cash. options worth £2.5m, bowing to pres- by the sale of 40 per cent of its Indian The $3.5bn (£2.2bn) share buyback sure from investors. operations to Vedanta. comes after the company sold a slice The board had wanted to reward Shareholders were offered the of Cairn India to Vedanta for $4.1bn. Gammell, a former Scottish interna- chance to sell their stock at a premi- Morgan Stanley is acting as the tional rugby player who in 1980 um or to pocket a bumper dividend company’s broker for the buyback. founded what is now a FTSE 100 com- and retain them. Some of the money is being used pany, for helping pull off the sale to The company said that more than for further exploration in areas Vedanta. Some institutional investors 64 per cent had opted for the divi- including Greenland. torpedoed the payout. Cairn boss Sir Bill Gammell has kicked off a share buyback Picture: GETTY Boeing seals record $22bn planes order

▲ TRANSPORT and president director, said in a BY JOHN DUNNE statement. Kirana signed the deal on the BOEING yesterday officially sealed opening day of the Singapore its largest ever commercial plane Airshow – a major showcase for the order in a $22.4bn (£14.2bn) deal aviation industry in the region. with Indonesia’s Lion Air. He said the purchases would be Lion Air ordered 201 Boeing 737 made possible with funds from the MAX and 29 next-generation 737- US Export Import Bank and private 900ERs, with purchase rights for a banks including BNP Paribas. further 150 planes from the US The first aircraft will be delivered manufacturer, for use on both in 2017 with the remainder up until domestic and international routes. 2026. Boeing said the deal was the Lion Air carried 85,000 passen- largest commercial plane order in gers a day domestically last year and its history, both in dollar value and expects to increase this to 100,000 the total number of aircraft. passengers daily by the end of this Lion Air announced the massive year. order during US President Barack The firm first took to the skies in Obama’s Asia-Pacific tour, but pen 2000 and claims to be Indonesia’s was only put to paper yesterday. largest private airline. Europe’s Boeing’s New York-listed shares Airbus rose 0.95 per cent yesterday to close had at $75.56. accused the US of applying political pressure to secure the deal. “We’re excited to be the first air- line in Asia to fly the 737 MAX,” Rusdi Kirana, Lion Air’s founder Actelion profits ThyssenKrupp are set to freeze swings to loss ▲ PHARMACEUTICALS ▲ METALS SWISS pharmaceutical giant THYSSENKRUPP, Germany’s biggest Actelion said yesterday it expected steel maker, swung to a surprise profits in 2012 to remain at 2011 €357m (£227.2m) operating loss in the levels. last quarter of 2011 as weak demand The company set a target for its from customers rattled by Europe’s earnings, to be unchanged from debt crisis hit prices. SFr437.5m (£303.4m) in 2011. The group, which last month The Tracleer lung treatment is one agreed to sell its struggling stainless of the company’s mainstays but it is steel unit, said yesterday it was facing ever increasing competition. unable to give a reliable forecast for The company is working on a its financial year that ends in Macitentan, a new lung drug which September due to the uncertain eco- is aimed at replacing Tracleer. nomic outlook. Arcelor Mittal, the Actelion said it was upbeat about world’s largest steel maker, has also future prospects despite tough cur- struggled, missing quarterly forecasts rent market conditions. and citing Europe as a concern. FINANCE BANKING LEGAL IT

THE BEST ROLES NEED THE BEST CANDIDATES.

New from City A.M., we bring you the latest ǁĂLJƚŽĮŶĚƚŚĂƚƉĞƌĨĞĐƚƌŽůĞ͘KƵƌŶĞǁǁĞďƐŝƚĞ ƉƌŽǀŝĚĞƐ >ŽŶĚŽŶ ƉƌŽĨĞƐƐŝŽŶĂůƐ ǁŝƚŚ ĂĐĐĞƐƐ ƚŽ ƚŚĞ ŵŽƐƚ ƐŽƵŐŚƚ ĂŌĞƌ ƉŽƐŝƟŽŶƐ͕ ƐŽ ŝĨ LJŽƵ͛ƌĞ ůŽŽŬŝŶŐ ƚŽ ŵĂŬĞ ƚŚĂƚ ĐĂƌĞĞƌ ŵŽǀĞ͕ ŵĂLJďĞ ŝƚ͛Ɛ ƟŵĞƚŽƐƚĞƉƵƉ͘hƉůŽĂĚLJŽƵƌsΘŐĞƚŬŶŽǁŶ͘

WWW.CITYAMCAREERS.COM 20 News CITYA.M. 15 FEBRUARY 2012 Hester had no choice but to turn down bonus

everyone else – indeed it may affect the players in the drama were operat- posite of six key perception measures) bonus, and it would have been better them even more, as their decisions ing against a backdrop of massive pub- dropped from -16 to -23. The need to from a brand perception point of view have wider effects. Public opinion is lic discontent they could not ignore. stay in tune with public opinion gave if the issue had never arisen. Stephan becoming more influential, as the dig- A YouGov poll that weekend showed Hester no choice but to turn down his Shakespeare is the chief executive of YouGov ital age gives the public a louder voice, that 73 per cent of the British popula- and leaders can no longer convince tion thought the government should ANALYSIS l RBS index and buzz ANALYSIS l Bonus poll themselves their own opinions are block the bonus and 88 per cent 70 61 popular unless they actually are. thought bonuses of that size are not 0.0 60 -5.0 Political, commercial and neuro- justified for publically owned banks. 50 BRANDINDEX -10.0 chemical prerogatives all mean that For Hester that creates two prob- -15.0 40 Index STEPHAN SHAKESPEARE there is a necessary regression to the lems. Firstly, the difficulty he has as an -20.0 30 27 majority view. The row over Stephen individual in ignoring those views, -25.0 20 -30.0 EOPLE are chemically pro- Hester’s bonus demonstrates how this and secondly the impact that it has on 8 5 -35.0 Buzz 10 grammed to feel more comfort- process works. the RBS brand. -40.0 0 able when they are in agreement The final decision to reject the Looking at BrandIndex, RBS buzz -45.0 Generally Generally justified Not Don’t with those around them. This bonus may have come after political fell from an already very low -26 to -45 -50.0 justified when privately generally know P 18/01/2012 26/01/2012 03/02/2012 11/02/2012 owned not when justified affects people in power just as much as pressure but there is no doubt that all in a week while the Index score (a com- owned by govt UK workers Bank of Japan putting back steps up QE in retirement

▲ PENSIONS deflation war MORE than one in ten people who were planning to retire this year will now delay taking their pen- US consumers aren’t spending as much as some analysts had hoped Picture: GETTY sions, according to research out ▲ JAPANESE ECONOMY down the road”, said Joe Manimbo, today from Prudential. senior market analyst with Travelex Of those postponing retirement, BY TIM WALLACE Global Payments. 68 per cent say they are putting it THE YEN fell against the dollar yester- “The Bank of Japan has many bat- Weak US retail sales cast off because they cannot afford to day after the Bank of Japan tles to fight with deflation having retire as originally planned. announced a 10 trillion yen (£81bn) eroded confidence over the past two But almost a third of those delay- expansion of its asset purchase pro- decades and the strong yen biting at ing said it was because they did not gram. the competitiveness of its exporters,” doubt on pace of recovery yet want to give up work. Despite years battling deflation, it said Chris Towner, director of HiFX. The age at which people plan to is the first time the central bank has “It knows its issues; however the retire is falling – the average age is stated an explicit inflation target. Bank has lacked the confidence in now 60 years old, down seven ▲ It now aims for consumer price the past to attack them with bold US ECONOMY still-simmering European debt crisis. months on 2010’s survey findings. inflation of one per cent. action, but recently we have seen BY HARRY BANKS “Stripping out the rises in gasoline The Pru has been conducting The monetary loosening pushed them stepping up in the size of their and building material sales, which annual retirement surveys since the dollar to three-month highs of as foreign exchange interventions and WORLD stocks retreated yesterday won’t affect real consumption, sales 2007. much as ¥78.37. now targeting a one per cent infla- over concerns about the economic rose by a healthy 0.7 per cent on the “Although many people think “We will be buying massive tion rate as well as boosting their recovery stemming from weak US month,” said Capital Economics’ Paul the idea of retiring as early as 60 is amounts of government bonds,” said asset buying programme. Japan retail sales data, a day after a broad Dales. out-dated, the majority of this governor Masaaki Shirakawa. seems to be preparing itself for a big measure of US equities notched an So-called “core” retail sales, which year’s retirees are defiantly stick- “This is designed to achieve battle.” almost seven-month high. go into the calculation of US GDP, ing to that plan,” said Prudential’s sustained economic growth under Sales increased 0.4 per cent in rose 0.7 per cent after declining 0.4 Vince Smith-Hughes. stable prices.” ANALYSIS l Japanese inflation has long January, the Commerce Department per cent in December. Core sales strip “It’s likely that many of these The 10 trillion in quantitative hovered around zero said, less than the 0.7 per cent rise out cars, gasoline and building mate- people will have accumulated bene- easing (QE) will be spent entirely on 4 expected by economists polled by rials. fits in final salary pension schemes Annual inflation rate -% long-term Japanese government Reuters. Yet investors on Wall Street took a that generate an acceptable income bonds, and yields fell slightly on gov- 2 Yet core retail sales, which exclude dim view of the report and the S&P in retirement – perhaps signaling ernment debt of all maturities from cars, gasoline and building materials, 500 index retreated from a near that the golden era of retirement one year upwards. 0 climbed 0.7 per cent. seven-month high. Prices for US for baby boomers isn’t over yet.” Analysts expect more to come from The S&P 500 index has risen more Treasury debt rose and the dollar rose He added that retirement is the central bank. The easing “played -2 than 25 per cent from its recent low against a basket of currencies. becoming a more elastic concept, up concerns about the outlook for in early October, leading investors to After recent bullish data, some ana- with many people choosing to the Japanese economy; that could -4 question how much further the rally lysts had expected the retail stats to work part-time rather than stop- keep the door open for further easing 2000 02 04 06 08 10 12 can run, especially in the face of a point to a stronger start to the year. ping outright.

In partnership with PoliticsHome.com Britain faces a recession, Apply to join today at www.cityam.com/panel says leading index report

▲ UK ECONOMY after remaining unchanged for the Who’s to blame for recent anti-business sentiment? two previous months. FALLING consumer and business con- “The LEI fell as a mild improvement This week, we are asking members of to fuel an anti-business culture in the Are there any particular sectors fidence points to a shallow recession in financial indicators failed to offset our Voice of the City panel, run with country. that are favoured by those in power – for the UK economy, the US-based the further decline of business and PoliticsHome.com, how they think How anti-business do you think the is British manufacturing or the serv- Conference Board said yesterday. consumer confidence,” said recent anti-business sentiment is government itself is, both in its rheto- ice sector missing out in favour of the The group’s Leading Indicator Conference Board economist Jean- affecting the country. ric and its actions? financial world when it comes to Index (LEI) fell for the fifth consecu- Claude Manini. Following the decision by Moody’s to How about the Labour party – coalition policies, for example? Or is it tive month in December, down 0.5 “Confidence picked up in January, place the UK on a negative credit rat- does it share some of the blame for a the other way around? points to 102.0, based on a figure of however, so there may be a bottoming ing outlook, chancellor George culture of business-bashing? To answer these questions and 100 in 2004. out in the leading indicators for the Osborne took to the airwaves yester- And is the media really fostering more, you can apply to join the panel However, the Coincident Economic U.K., as we have seen in the Euro Area day to hit out at the BBC for helping anti-business feeling in the UK? at cityam.com/panel. Index, measuring current activity, LEI, which improved somewhat in increased 0.1 per cent in the month December.” CITYA.M. 15 FEBRUARY 2012 News 21

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

was an equity analyst, investing pre- chief executive officer. Nick Kershaw, Hubbard as chief executive. Hubbard The Salamanca Group dominantly in pan-European equities. who previously held both the group is the former chief operating officer Jeremy Wrathall has been appointed as man- chief executive and the legal chief exec- of BlackRock in 2007, who joined aging director of Salamanca Resources, the Caledonia Investments utive roles, continues as the group chief Opal in the summer of 2011 as man- recently formed division of Salamanca that Eloise Fox will join Caledonia executive, having been elected for a sec- aging director. will focus on the metals and mining sector. He Investments’ quoted and unquoted ond three-year term. joins from Renaissance Capital, where he was pools as an investment executive. Fox Brammer head of investment banking for the London most recently worked at EurotaxGlass’s Ropes & Gray Chairman David Dunn will not stand operation and had responsibility for metals International, a Candover Investment Matthew Judd has joined the law for re-election at the distribution and mining, focusing on Africa. In previous firm based in Zurich. Before this, she firm’s London office as a partner in its firm’s AGM on 17 May. Bill Whiteley, roles, Wrathall was global head of mining was an investment executive at private investment funds group. Judd non-executive director, who joined the equities at Deutsche Bank and global head of Candover and a due diligence account- moves to Ropes & Gray from White & board of Brammer in July 2008 fol- mining equity sales at UBS. ant with KPMG in London. Case, where he was a partner and head lowing his retirement as chief execu- of the investment funds practice. tive of Rotork, will be proposed to Baring Asset Management Percival Stanion, Barings’ head of asset The Ogier Group succeed Dunn. Duncan Magrath, The investment firm has appointed allocation, and based in London. Huang James Bergstrom, who relocated to Opal finance director of Balfour Beatty, has Alison Huang as an investment manag- joins Barings from TT International Hong Kong in 2011 to lead Ogier’s Hong The financial services outsourcing been appointed as a non executive er in its multi-asset team, reporting to Investment Management, where she Kong office, has been appointed as legal company has appointed Alan director, effective from 1 March. To appear in CITYMOVES please email your career +44 (0)20 7092 0053 updates and pictures to [email protected] SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com

BEST OF THE BROKERS To appear in Best of the Brokers email your research to [email protected]

ANALYSIS l Bunzl ANALYSIS l Gulf Keystone Petroleum ANALYSIS l Barclays 234.90 910.50 376.00 p p p 14 Feb 260 14 Feb 920 14 Feb 400 240 900 350 880 220 860 300 200 840 250 820 180 200 800 160 780 150

Dec Jan Feb Dec Jan Feb Dec Jan Feb BARCLAYS BUNZL GULF KEYSTONE PETROLEUM Shore Capital has upgraded the bank from “sell” to “hold” with a target price JP Morgan has upgraded the distribution group from “neutral” to “over- Seymour Pierce has upgraded its target price on the Kurdistan-focused oil of 240p following its full-year 2011 results, saying the company has made bet- weight” and increased its target price on the stock from 835p to 985p, ahead explorer from 374p to 524p, and maintained its “buy” rating on the stock. The ter progress than expected in rebuilding its core tier 1 ratio. The broker is also of full-year results from the company on 27 February. The broker points out broker suggests profit taking ahead of upcoming well results to mitigate more positive due to the ECB’s intervention into bank funding markets, which that Bunzl’s share price often drifts between results, but tends to perform against the risk of a poor outcome, but has moved to its best case scenario it says has improved market sentiment on risk assets. Shore does not see the strongly after full and half-year reports, and it sees the stock’s recent relative for the company after reviewing its 2C resources. The next major driver will current value of the shares as stretched given the reduction in tail risk. underperformance as a good entry point before the results are released. be a result from the Ber Bahr-1 well, expected in early March. Disappointing data dents the Wall St steady as recent strength in the FTSE shopping stats flat

recession. rating for the packaging firm to “over- to 12,878.28. The Standard & Poor’s The UK benchmark closed down weight” on valuation grounds. 500 Index dropped 1.27 points, or THELONDON 5.83 points, or 0.1 per cent, at 5,899.87, “We believe that the recent relative THENEW YORK 0.09 per cent, to 1,350.50. The having risen 0.9 per cent on Monday underperformance could be a good Nasdaq Composite Index edged up after Athens’s approval of austerity entry point ahead of FY results on 27 0.44 point, or 0.02 per cent, to REPORT measures helped ease fears over a February,” JPMorgan said in a note. REPORT 2,931.83. messy default. Outsourcing group Capita was Materials and financials were the RITAIN’S top shares went into Miners and banks, strong gainers on another good gainer, ahead 2.1 per worst performing sectors after rising retreat yesterday after disap- Monday, were the biggest drags on the cent after it said it had been selected as S stocks erased losses to end lit- more than 10 per cent for the year. pointing US retail sales data index, as investors, rattled by the recommended supplier to partner the tle changed yesterday after a The S&P materials index lost 1.3 Braised concern over the strength downbeat US data and unconvinced Ministry of Defence in providing Greek government source said per cent as Freeport-McMoRan of the economic recovery, prompting a Greece is off the hook, switched into recruitment services for the Army and Uthe conservative party leader Copper & Gold fell 3.8 per cent to move out of banks and miners into defensive sectors such as drugmakers. IT services for the Royal Navy and was expected to deliver a letter of $42.96, and the S&P financial index more defensive sectors. Yet more dire economic figures Royal Air Force. commitment to the country’s inter- slipped 1.1 per cent with Citigroup A 0.4 per cent rise in retail sales fell posted by Greece yesterday made it Meanwhile, the FTSE Small Cap national lenders. off 2.4 per cent to $32.08. short of the 0.7 per cent increase increasingly difficult to see the coun- index closed down 0.1 per cent, same And US retail sales fell short of for- Volume was light with about expected by economists polled by try being able to get its deficit under as the FTSE 100, while the FTSE 250 fell recasts, rising 0.4 per centin January. 6.78bn shares traded on the New Reuters, reflecting cutbacks in car pur- control, with flash estimates showing 0.3 per cent. A sign of Greece’s commitment to York Stock Exchange, NYSE Amex chases and online shopping. GDP shrank seven per cent in the Yell Group shed 17 per cent after the the tough austerity measures and Nasdaq, shy of the daily average “Everybody thought that the US fourth quarter of 2011. Yellow Pages publisher reveals a slight- demanded by Eurozone leaders was of 6.96bn. retail sales numbers were going to be “Those that missed the recent rally ly bigger than forecast 15 per cent fall a catalyst for buyers to jump into the The S&P retail index gained 0.3 per very, very good and they were alright, are reluctant to buy in for fears of an in third-quarter revenue. stock market late in the session. cent after hitting an intraday high of but they certainly weren’t as good as imminent sell off,” Atif Latif, director Journey Group jumped 19 per cent Eurozone finance ministers are 570.33, the highest level on record people expected,” Michael Hewson, of equities and derivatives at Guardian after saying its 2011 results are expect- due to hold a telephone conference for the index. market analyst at CMC Markets, said. Stockbrokers, said. “With sector rota- ed to be ahead of current market call today about a €130bn bailout to Auto supplier BorgWarner added “It just reinforces the fact that there tion and defensive buying alongside expectations. avert a chaotic Greek default. 0.7 per cent to $79.41 after posting a are quite a significant amount of prob- downside protection being aggressive- Late-day moves by stocks are often fourth-quarter profit that beat Wall lems that still need to be resolved – not ly bought we may have seen the last exacerbated by dealers who are hedg- Street expectations on a 16 per cent ANALYSIS l FTSE 5,899.87 only in Europe but also in the US econ- push up before a correction.” 14 Feb ing positions. sales increase. omy.” InterContinental Hotels was among 6,000 p “There has just been no volume for According to Thomson Reuters Moody’s warnings late on Monday the biggest laggards, off 2.1 per cent. the last week or so, so you are kind of data yesterday morning, of the 361 that it could downgrade top-rated sov- The world biggest hotelier unveiled 5,800 able to push stocks around a little bit companies in the S&P 500 that have ereigns including Britain also left the robust full-year results but broker 5,600 more” said Sam Ginzburg, head of posted results, 63 per cent have market on edge, though did not come Charles Stanley cut its rating to capital markets at First New York. topped expectations, tracking below as too much of a shock, traders said. “reduce” after a strong run in the 5,400 Bank shares, which have been the recent quarters through this stage in Compounding worries, traders shares. most affected by developments out earnings season. warned that fourth-quarter Eurozone Bunzl, meanwhile, grabbed the top 5,200 of Greece, cut some of their losses. Micron Technology shares rose 6.2 GDP data, set for release today, could spot on the blue chip leader board, up 5,000 The Dow Jones industrial average per cent to $8.34 after positive com- point to the fact the region is back in 3.7 per cent, after JPMorgan hiked its 14 Nov 2 Dec 22 Dec 16 Jan 3 Feb gained 4.24 points, or 0.03 per cent, ments from analysts at JP Morgan. 22 CITYA.M. 15 FEBRUARY 2012 The Forum cityam.com/forum Why we should speak out against moves to curtail the UK’s freedom of speech

AWN raids by police on the homes of joked that he would blow an airport “sky tion between the ironic and the literal reporters are not something we expect high” if its closure due to bad weather meant mind”. Censors love certainty, but human to happen in the UK. But that’s what he would miss a romantic rendezvous in society is about interaction and context. The Dhappened last weekend, when the Belfast. Chambers is currently awaiting a only way we have ever been able to progress is Metropolitan police sent teams of up to 10 judgment in his appeal against a conviction to be able to debate, to argue, to object to the officers to the homes of senior Sun journal- for “menacing communications”, despite the status quo and to freely express our view that ists. fact not one person involved in the prosecu- there may be different, better ways of doing Reactions were mixed. Brian Cathcart of tion seems to believe his communication was things. the Hacked Off campaign, which has worked actually menacing. Businesses, in particular, need to learn this tirelessly for victims of phone hacking, wrote There is concern among journalists that lesson. Businesses depend on the whistle- that the police were simply doing their job. blower to expose corruption and bad practice Trevor Kavanagh of the Sun saw it differently, that can destroy a once thriving company. describing the move as a “witch hunt” But too often silence pervades the workplace. against journalists and pointing out that the Censors love certainty, but One report puts the median cost of a fraud- UK was now rated behind several former ulent action at $160,000 (£102,000) and Soviet countries in press freedom. according to whistleblowing charity Public My organisation Index on Censorship is human society is about Concern At Work, the best way of countering well placed to look at this claim. This year, we fraud is to put in place a system in which celebrate 40 years of fighting for free expres- interaction and context. employees feel safe reporting dubious prac- sion, having been founded in 1972 to provide tices. a voice for censored writers behind the Iron The only way we have ever Britain is not Burma, or Saudi Arabia. Curtain. Today we campaign for free speech People generally do not face prison or execu- in former Warsaw Pact countries such as tion for speaking their minds. But this coun- Azerbaijan, Belarus and Hungary, but also for been able to progress is to try should not be content to be merely better the right to speak freely at home in the UK. than a dictatorship. In business, in culture That right does, sadly, not seem as certain object to the status quo and in society we should be actively promot- as we might hope. While the average British ing free speech, and not allowing our leaders person does not labour under the eyes of the to find excuses to censor and control the secret police, we do struggle with archaic the same rigidity of thinking may emerge in national conversation. laws, insensitive apparatchiks, and politi- the aftermath of the phone hacking scandal Padraig Reidy is news editor of Index on cians who all are all too ready to say: “I’m all and the Leveson inquiry into the culture, Censorship. in favour of free speech, but...” practices and ethics of the media. That “but” comes in different guises. A sup- Let’s look at phone hacking as an example. posed right to a good reputation means that Everyone condemns the hacking of the cardiologist Peter Wilmshurt could be threat- phone of murdered schoolgirl Milly Dowler, Agree? Disagree? Got a sharp comment? ened with absurdly expensive libel cases by but what if, for example, a journalist hacked The Forum wants you to join the debate. multinational corporations for criticising the phone of a politician he suspected of their medical products. The right to privacy dodgy business deals? Technically, the same COMMENT NOW ON meant that RBS’s Fred Goodwin was allowed crime has been committed, but this time Twitter: @cityamforum; to cover up an affair with a colleague, at a with an undeniable public interest. Yet if we time when the running of the almost-ruined are to stick to the absolute letter of the law, on the web: cityam.com/forum; bank was surely in the public interest. A as many advocate, then that journalist would bureaucratic obsession with procedure, end up in jail. or by email: [email protected]. rather than common sense, means that the The late writer and free speech “fundamen- Top responses will be reprinted in The Forum. career of trainee accountant Paul Chambers talist” Christopher Hitchens once wrote of PADRAIG REIDY has been ruined by one tweet in which he censorship that “there is an all out confronta- CITYA.M. 15 FEBRUARY 2012 23 In association with Email: [email protected] Twitter: @cityamforum The Forum

RAPID RESPONSES Account for waste We need radical It’s impossible to disagree with NHS IT system and identity The government might provide Anthony J. Evans’ article [A cards, as well as the vast sums encouragement by giving fig- nation of tax cheats changed by spent on poorly managed PFI ures every year, not only for the new rules, yesterday]. The Greeks projects and a proliferation of amount spent, but how much reforms to raise largely got into a pickle because wastage at local government was wasted. If taxpayers see their attitude was that paying tax level, the reaction might be: if we the latter figure coming down, was for wimps. pay it, they (the government) will they might be more inclined to However, one of the deterrents waste it. feel that paying taxes is worth- to paying taxes is waste by gov- We know that the banks while. ernment. When we see pictures squandered hundreds of billions, Derek Coggrave NHS productivity on television of Nimrod airframes but government was equally being smashed up and other min- reckless with its finances. There We want to hear your views – istry of defence disasters, and are figures for the banks’ losses email us: [email protected] hear of the abandonment of the but not for government waste. Top responses will be reprinted. We’ve a flatlining healthcare model: Donating organs could this is no time for academic debate prove a costly decision VERY now and then academic disputes break out into th e mainstream. In an article for The Lancet medical journal, EProfessor Nick Black claims it’s a myth BY JAMIE WHYTE th at NHS productivity has fallen over th e last decade. Productivity (what we put in against what we get out) may not actually be down 0.4 EVER make you die, and you are an organ donor, your heart, per cent a year since 2000, he says, but slight- yourself kidneys, liver and lungs will be available to save ly up – although he doesn’t say by how much. worth more four lives. The doctors working on you therefore This has excited opponents of reform who say NICK SEDDON Ndead than have less incentive to save you. If you are a th e NHS doesn’t need to be more efficient, alive. This was the donor, your death produces a net gain of three while th e Office for National St atistics, th e sage advice my lives. If you are not, it delivers a net loss of one. source of th e 0.4 per cent figure, has pointed “quantity and quality of health care services father gave me as The suggestion that doctors would make such to misunderstandings in Professor Black’s remain lower th an th e OECD average while a boy and I have a calculation may seem outrageous. But it need analysis. However, th is is a dead-end dispute. compensation levels are higher.” Roughly stuck to it ever not be official policy or said aloud by the doctors Whoever is right, productivity has been broad- translated: our doctors are paid too much and since. That is why and nurses tending to your broken body for the ly close to zero and debates about deviations th ey don’t do enough. my life insurance thought to be there, in the back of their minds, from th is flat line don’t alter th e urgent need More fundamentally, we need to change the pays out less if I die than the net present value of affecting the fervour with which they try to save to deflect it into an upwards curve. whole health and social care business model. my likely future earnings. I trust my wife, but you. Even if you trust doctors, why put tempta- Indeed, the NHS needs to raise productivity The NHS was set up to deal with emergencies why put temptation in her way? tion in their way by being an organ donor? by 4 per cent every year for th e next four years, and infections; now the big threat is old age It also explains why I object to a new propos- This is not to deny that there is too little as th e NHS chief executive, Sir David and long-term conditions. If we try to meet al from the British Medical Association (BMA). organ donation going on. If there were more, the Nicholson, has said. That equates to £20bn th e new needs in old ways, spending is pro- They want to shift organ donation from the cur- net effect on lives saved would be positive. The effi ciency savings over fo ur years – a lot more. jected to increase by an estimated £40bn (in rent opt-in system, on which you must apply for question is how to remedy the currently unsatis- To give a sense of how unprecedented th is is, to day’s money) by 2041. Ye t, while other coun- an organ donor’s card, to an opt-out system. If factory situation. And the BMA has got this spending on th e NHS doubled from £50bn to tries have been invest ing in new services, we they have their way, everyone will be deemed to wrong. The problem with the current system is over £100bn from 1999 to 2010. This was based have splurged on propping up th e old st ruc- have consented to the harvesting of their organs not that opting-in is too bothersome but that it on th e assumption th at NHS productivity tures. Other countries have invested in preven- upon death unless they explicitly say otherwise. fails to recognise that being a donor is costly, would matc h the performance of the UK econ- tative care and moved treatment out of Many will think this a good idea because there and therefore in need of compensation. omy (private sector productivity in th e same hospitals into more cost-effective settings; we is no cost in donating your organs. The dead People should be paid to become donors. The years is estimated to have risen by 2.3 per cent have built more hospitals and sent more peo- have no use for their liver, heart, kidneys or for payment could be upfront. For example, I am annually), but it was nowhere near. Spending ple to those hospitals. From 2000 to 2010, hos- anything else. It is only the time and hassle of sure many students, even students of statistical rose faster th an in most rich countries but pital admissions rose in Sweden by 1.6 per applying for a donor’s card that deters people finance, would see signing up as a good deal in improvements in life expectancy were below cent, but in th e UK by 38 per cent. A th ird of from becoming donors. So why not simply return for £100. Or the payment could be condi- average. our hospital admissions are unnecessary. remove this cost by introducing an opt-out sys- tional on harvesting. You might sign a contract The crushing weight of evidence points to Measuring productivity is hard. Maybe tem? that, in the event of your death and donation, gr oss inefficiencies in th e NHS. In no other Professor Black will come up with an authori- Alas, the cost is not only in the application but £5,000 will be paid to your estate. part of th e public sector has so much waste tative measure in due course. But th e rest of in the achievement too. Because being an organ Some will find the idea of commercialising been identified. Similarly, th e seminal 2010 us mustn’t get waylaid fighting yesterday’s donor increases your value when dead, it organ donation distasteful. But, since the trans- OECD review of efficiency in health systems battles. Making th e NHS better prepared to increases the chance that you will die. Imagine action would be entirely voluntary, it is really suggested th at compared with th e best coun- fight tomorr ow’s battles requires totally new yourself on the operating table following a car none of their business. tries like Aust ralia and Switzerland th e UK is approaches to health and social care. accident that has done some nasty damage to Jamie Whyte is a senior fellow of the Cobden way off th e mark. Failing to effectively trans- Nick Seddon is deputy director of the independent your guts but left your other organs pristine. If Centre. form resources into health outc omes, th e think ta nk Refo rm . 24 CITYA.M. 15 FEBRUARY 2012 Wealth Management | Foreign Exchange CABLE RALLIES DESPITE JUMP No Valentine’s Day love IN QE NUMBER ZOE FIDDES for Euro sovereign debt UK BRANCH MANAGER, EASY-FOREX

HE Bank of England (BoE) voted on 9 February to maintain The Moody’s move its reserve rate at 0.5 per cent and to increase the size of its asset purchase program by £50bn to a total of £325bn. may have taken the TThis increase reflects concern that slower 2011 growth and a 0.2 per cent fourth quarter contraction of GDP raises the risk of lead out of some a double-dip recession. Weaker export sales and ongoing concern about the indebtedness and competitiveness of some euro area politicians’ pencils, countries contribute to the slowdown. The central bank noted tight credit conditions and cuts in fiscal spending present a head- writes Craig Drake wind for the economy and the near-term outlook is for weak growth. In addition, inflation declined to 4.2 per cent in December. HE move made by Moody’s this The BoE expects inflation to continue to fall sharply reflecting week to downgrade a number of weaker demand, spare capacity and high unemployment. Eurozone sovereigns, as well as put- Sterling rallied after the BoE’s decision to expand quantitative Tting the UK and France on the easing and in reaction to reports of better than expected naughty step, caused more of a political December industrial production and trade figures. The gains may fall-out than any real effect on the mar- reflect the fact that the asset purchase was less than the £75bn kets. Politicians squabbled like teenagers some had expected and hope that the latest increase in liquidity as to whose economic policies were the will boost the UK economy. Some analysts are now looking for object of Moody’s affections, but the mar- moderate economic growth in the first half of 2012 in the UK. kets were largely nonplussed by the move. The pound may outperform the euro in the near-term as posi- Political leaders may, however, have been tive news about Greek debt talks and steady ECB policy are less than enamoured with the ratings already priced. Leaders in Greece have agreed on a package of agency’s timings: “In a sovereign debt cri- austerity measures which reduces the risk of a Greek default. sis the credit rating agencies seem to have Hence euro-sterling may experience renewed selling pressure off a dark side in choosing the dates of their the £0.8400 highs. Against the Japanese yen the pound may announcements to bring bad news,” says continue its gain as Japan’s fundamental data points towards a Chris Towner, director of FX advisory serv- negative outlook with recent trade data indicating deterioration; ices a HiFX. “Last month we saw S&P Japan posted its first annual trade deficit since 1980 in 2011. downgrade France’s credit rating on Finally, the sterling-dollar direction remains closely correlated to Friday 13 and today we have Moody’s St the market’s risk sentiment. US economic data is a significant Valentine’s massacre downgrading Italy, factor influencing this sentiment. Recently, the US unemploy- Spain and Portugal’s credit ratings as well ment rate dropped to a three-year low and the equity market hit as downgrading the outlook for the UK an eight-month high last week. If the US data continues to show and France.” improvement it should boost risk appetite as it reduces the pos- sibility of the Fed implementing a third round of quantitative eas- COLD SHOULDER ing (QE3). Despite pouring cold water on any roman- He’s probably not whispering sweet nothings to Sarkozy Picture: GETTY Please note that Forex trading (OTC Trading) involves substantial risk of tic feeling between European policy mak- loss, and may not be suitable for everyone. Do not invest money you can- ers and the ratings agencies, the market sentiment rather than any change in fun- kets. As George Osborne, chancellor of the not afford to lose. The information provided is for informative purposes reaction was subdued: “For France itself, damental outlook as a result of Moody’s Exchequer, said on the news of the down- only, and can under no circumstances be considered as a recommenda- this seems more like a St Valentine’s gift pointing out the obvious – that Britain is grade:“It was a reality check for the whole tion to engage in any trade. Easy Forex Trading Ltd is regulated by the than massacre as having their outlook at risk due to “materially weaker growth political system that Britain has to deal Cyprus Securities and Exchange Commission (CySEC) (License Number downgraded is an upgrade compared to prospects over the next few years” and with its debts, that we can’t waver in the 079/07). the outright cut they received from S&P that it needs to “place the debt burden on path of dealing with our debts.” in January,” says Towner. “However this all a downward trajectory by fiscal year 2015- For the time being, with the floor in the weighs on sentiment and indeed drives 16.” The warning constitutes a 30 per cent euro-Swiss franc still being defended by investors away from the EU and towards chance of a downgrade of the UK sover- the Swiss National Bank and the Bank of the US again.” eign debt rating over the next 18 months, Japan ramping up its asset purchases and but taking the example of the US down- intervening in anything that moves, the LEAST UGLY GIRL grade last year, even if this were to go dollar will remain the object of affection With the Moody’s move widely anticipat- ahead, it would not necessarily change on an FX dancefloor full of decidedly ropy ed, yesterday’s FX moves were driven by the state of play in the FX or debt mar- offerings. CITYA.M. 15 FEBRUARY 2012 25 Wealth Management | Markets

FTSE 100 FTSE 250 FTSE ALLSHARE DOW NASDAQ S&P 500 / 1.1955 0.0003 /$ 1.3170 0.0060 5899.87 11245.69 3048.47 12878.28 2931.83 1350.50 /$ 1.5675 0.0075 /£ 0.8363 0.0001 5.83 29.91 -3.68 4.24 0.44 1.27 /¥ 123.01 0.8111 /¥ 102.86 0.6711

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 CONSTRUCTION & MATERIALS Brewin Dolphin Ho . .155.0 -1.6 185.4 113.7 Smith (DS) ...... 166.5 -4.8 183.4 113.3 Catlin Group Ltd. . . .440.4 13.4 449.0 334.0 Bumi ...... 767.5 0.0 795.0 747.0 Capital Shopping . . .337.0 -0.1 408.6 288.7 International Con . . .172.5 -2.8 258.7 132.0 Camellia ...... 9871.0 -74.010950.0 8800.0 Smiths Group . . . . .1053.0 3.0 1423.9 869.5 Hiscox Ltd...... 405.7 0.8 424.7 340.5 Centamin (DI) ...... 95.0 -2.2 154.2 78.5 Derwent London . . .1748.0 -13.0 1880.0 1400.0 JD Wetherspoon . . . .404.2 -5.8 468.3 380.5 Tsy 9.000 12 . . . .103.99 0.00 111.3 103.3 Balfour Beatty ...... 282.3 -2.7 357.3 214.6 Charles Taylor Co . . .140.0 -4.0 165.0 115.6 Jardine Lloyd Tho . . .670.0 -5.0 764.5 576.0 Eurasian Natural . . .709.5 7.5 1020.6 522.0 Great Portland Es . . .363.8 -2.6 445.0 312.9 Ladbrokes ...... 146.1 -1.3 155.3 114.0 Tsy 5.000 12 . . . .100.26 -0.05 104.2 100.2 CRH ...... 1276.0 -3.0 1700.0 1053.0 City of London Gr . . . .66.0 0.0 93.6 61.3 GENERAL RETAILERS Lancashire Holdin . . .760.0 10.0 774.5 532.5 Fresnillo ...... 1784.0 11.0 2150.0 1302.0 Hammerson ...... 393.5 2.2 490.9 345.2 Marston's ...... 100.2 1.0 112.0 84.6 Tsy 5.250 12 . . . .101.50 -0.03 105.4 101.5 Galliford Try ...... 497.5 -14.5 530.0 332.8 City of London In . . .354.8 -2.5 445.0 304.3 Brown (N.) Group . . .254.2 -1.1 304.5 227.0 RSA Insurance Gro . .111.4 -0.8 143.5 99.6 Gem Diamonds Ltd. .237.3 1.3 306.0 179.8 Hansteen Holdings . . .75.3 0.3 89.5 68.0 Millennium & Copt . .479.9 7.3 600.5 371.2 Tsy 4.500 13 . . . .104.34 -0.02 106.5 104.3 Kier Group ...... 1445.0 -16.0 1461.0 1097.0 Close Brothers Gr . . .700.5 -4.0 875.0 590.0 Carpetright ...... 604.0 26.0 770.5 375.0 Aviva ...... 361.6 -6.4 477.9 275.3 Glencore Internat . . .423.6 -5.7 531.1 348.0 Land Securities G . . .686.0 -4.0 885.0 612.0 Mitchells & Butle . . . .271.0 -0.1 336.8 215.6 Tsy 2.500 13 . . . .282.95 -0.10 287.7 279.4 Collins Stewart H . . . .98.0 0.3 98.0 48.5 Debenhams ...... 69.3 -1.1 74.8 51.2 Hochschild Mining . .504.5 -13.0 680.0 365.9 SEGRO ...... 231.9 -2.2 331.3 195.0 National Express . . .227.5 0.2 270.2 201.6 ELECTRICITY LIFE INSURANCE Tsy 8.000 13 . . . . .112.23 -0.04 116.9 112.1 F&C Asset Managem .68.1 -0.6 88.1 56.1 Dignity ...... 775.5 -3.5 854.5 648.5 Kazakhmys ...... 1121.0 -18.0 1579.0 730.0 Shaftesbury ...... 514.0 -3.0 539.0 441.2 Rank Group ...... 129.5 -8.5 153.7 109.5 Tsy 5.000 14 . . . . .111.67 -0.01 112.9 109.2 Drax Group ...... 528.5 -2.0 581.5 371.9 Hargreaves Lansdo .460.6 -5.0 646.5 402.5 Dixons Retail ...... 14.2 -0.6 22.1 9.4 Legal & General G . . .119.3 0.0 123.8 89.8 Kenmare Resources . .56.6 -1.9 59.9 31.0 Restaurant Group . . .303.3 -0.1 335.0 254.9 Tsy 4.750 15 . . . . .114.80 0.02 115.4 108.7 SSE ...... 1281.0 21.0 1423.0 1182.8 Helphire Group ...... 2.0 0.0 17.4 1.4 Dunelm Group ...... 501.5 -1.5 524.5 383.9 Old Mutual ...... 157.6 -0.7 158.5 98.1 Lonmin ...... 1017.0 -18.0 1880.0 941.0 SOFTWARE & COMPUTER SERV. Spirit Pub Compan . . .57.8 2.3 58.1 35.3 Tsy 8.000 15 . . . .127.94 0.02 129.2 123.7 ELECTRONIC & ELECTRICAL EQ. Henderson Group . . .126.5 -1.1 173.1 95.1 Halfords Group . . . . .322.1 -2.9 408.6 268.6 Phoenix Group Hol . .566.0 -1.5 688.0 451.1 New World Resourc .513.5 -4.0 1060.0 409.4 Aveva Group ...... 1700.0 -4.0 1799.0 1298.0 Stagecoach Group . .267.5 1.8 287.4 200.0 Tsy 7.750 15 . . . .100.00 0.00 106.2 99.4 Highway Capital . . . . .13.0 0.0 21.0 6.5 Home Retail Group . .105.4 -3.9 235.0 72.5 Prudential ...... 718.0 1.5 777.0 509.0 Petropavlovsk ...... 693.0 -23.0 1090.0 543.5 Computacenter . . . . .413.4 -5.5 490.0 324.7 TUI Travel ...... 205.3 -2.2 250.0 136.7 Tsy 4.000 16 . . . . .114.20 0.11 114.7 105.0 Domino Printing S . .615.0 5.0 705.0 434.3 ICAP ...... 366.1 -2.0 552.5 311.6 Inchcape ...... 366.0 -0.1 425.4 268.1 Resolution Ltd...... 269.0 -2.0 316.1 229.5 Polymetal Interna . .1103.0 3.0 1175.0 877.0 Fidessa Group . . . . .1587.0 -29.0 2109.0 1444.0 Whitbread ...... 1725.0 11.0 1863.0 1409.0 Tsy 2.500 16 . . . .342.49 -0.14 344.2 312.2 Halma ...... 382.6 6.4 429.6 306.3 IG Group Holdings . .470.0 -6.7 502.5 393.6 JD Sports Fashion . .858.5 22.5 1030.0 570.0 St James's Place . . . .371.5 -3.5 379.9 294.0 Randgold Resource 7155.0 10.0 7565.0 4425.0 Invensys ...... 211.5 -0.7 357.8 180.9 William Hill ...... 233.8 -0.5 244.1 176.8 Tsy 12.000 17 . . .120.91 0.00 128.7 120.7 Laird ...... 167.4 0.4 207.0 127.9 Intermediate Capi . . .282.4 -2.1 345.0 197.9 Kesa Electricals . . . . .82.0 -0.2 151.4 60.2 Standard Life ...... 228.8 0.9 244.7 172.0 Rio Tinto ...... 3727.5-118.0 4682.0 2712.5 Logica ...... 80.3 -3.5 147.2 59.0 Tsy 8.750 17 . . . .141.77 -0.17 141.9 133.0 Morgan Crucible C . .327.0 -2.0 357.1 224.0 International Per . . . .206.9 -5.6 388.8 148.5 Kingfisher ...... 271.0 -1.0 287.1 217.0 4Imprint Group . . . . .270.4 1.6 295.0 200.0 Vedanta Resources 1251.0 -31.0 2518.0 928.0 Micro Focus Inter . . .445.7 2.0 455.0 242.9 AIM 50 Tsy 1.250 17 . . . . .115.96 -0.05 116.6 106.7 Oxford Instrument .1076.0 -26.0 1119.0 600.5 International Pub . . .120.8 -0.2 121.5 108.6 Marks & Spencer G . .344.4 -4.4 402.2 301.8 Xstrata ...... 1184.0 -29.0 1550.0 764.0 Misys ...... 308.4 18.1 420.2 214.9 Abcam ...... 331.3 -5.3 460.0 320.0 Tsy 5.000 18 . . . .122.25 0.16 122.5 109.9 Renishaw ...... 1446.0 -16.0 1886.0 800.0 Investec ...... 389.0 -2.4 522.0 318.4 Next ...... 2757.0 16.0 2810.0 1868.0 MEDIA Sage Group ...... 299.7 0.7 310.1 231.7 Advanced Medical . . .87.8 -0.8 96.0 64.8 Tsy 4.500 19 . . . .120.27 0.22 120.7 105.6 Spectris ...... 1620.0 -26.0 1679.0 1039.0 IP Group ...... 101.3 0.3 102.9 36.0 Sports Direct Int . . . .262.8 1.8 266.2 161.9 Aegis Group ...... 164.6 -0.5 166.9 115.7 MOBILE TELECOMS SDL ...... 661.5 -8.5 711.5 586.0 Albemarle & Bond . .368.5 0.0 400.1 281.0 Tsy 3.750 19 . . . . .115.04 0.24 115.6 99.6 Jupiter Fund Mana . .240.0 -7.1 337.3 184.9 WH Smith ...... 538.5 1.0 559.0 433.8 Bloomsbury Publis . .124.5 0.5 138.0 91.3 Inmarsat ...... 461.9 -6.0 719.5 389.3 Telecity Group ...... 676.0 27.5 681.0 450.5 Amerisur Resource . .23.0 -0.3 29.0 9.5 Tsy 2.500 20 . . . .365.06 0.12 367.1 314.0 EQUITY INVESTMENT INSTRUM. Liontrust Asset M . . . .89.9 -1.0 91.4 57.9 HEALTH CARE EQUIPMENT & S. British Sky Broad . . .698.5 -1.5 850.0 618.5 Vodafone Group . . . .173.9 -0.5 182.8 155.1 Andor Technology . .542.5 -2.5 685.0 387.1 Tsy 4.750 20 . . . .122.57 0.27 123.5 106.8 Aberforth Smaller . . .612.0 3.0 714.0 494.0 LMS Capital ...... 56.0 -0.5 64.8 54.0 Centaur Media ...... 39.0 0.0 73.0 32.5 SUPPORT SERVICES Archipelago Resou . . .67.5 -1.5 79.0 55.5 Tsy 8.000 21 . . . .151.40 0.27 153.4 134.1 Alliance Trust ...... 365.9 1.1 392.7 310.2 London Finance & . . .22.5 0.0 23.5 19.0 Smith & Nephew . . . .635.0 -0.5 742.0 521.0 Chime Communicati .236.3 -13.0 298.5 163.0 NONEQUITY INVESTM. COMM. Aggreko ...... 2187.0 7.0 2191.0 1394.5 ASOS ...... 1852.0 -42.0 2468.0 1142.0 Tsy 1.875 22 . . . .126.64 0.09 129.1 111.3 Bankers Inv Trust . . .406.0 1.0 428.0 346.5 London Stock Exch .942.0 2.0 1076.0 756.5 Synergy Health . . . . .856.5 -3.5 981.0 808.0 Creston ...... 58.3 0.9 121.0 47.0 Genesis Emerging . .504.5 -0.5 548.5 424.0 Ashtead Group . . . . .249.2 -3.3 253.5 99.4 Aurelian Oil & Ga . . . .16.8 0.3 92.0 16.0 Tsy 4.000 22 . . . . .116.46 0.31 118.2 99.4 BH Global Ltd. GB .1173.0 -7.0 1212.0 1058.0 Lonrho ...... 10.8 0.0 19.8 8.9 Daily Mail and Ge . . .431.1 -4.0 570.0 343.4 Atkins (WS) ...... 759.0 0.0 820.0 490.2 Avanti Communicat .282.5 -4.5 628.0 248.5 Tsy 2.500 24 . . . .328.06 0.16 334.7 275.9 BH Global Ltd. US . . . .11.7 0.0 12.2 10.4 Man Group ...... 132.3 1.1 309.0 104.5 HHOLD GDS & HOME CONSTR. Euromoney Institu . .710.0 0.0 738.0 522.5 OIL & GAS PRODUCERS Babcock Internati . . .746.0 4.0 758.0 542.0 Blinkx ...... 78.5 9.5 158.0 50.5 Tsy 5.000 25 . . . .127.80 0.34 130.6 108.0 BH Macro Ltd. EUR . . .19.5 -0.0 20.2 16.3 Paragon Group Of . .182.1 -4.5 206.1 134.6 Barratt Developme . .124.4 2.6 125.3 67.5 Future ...... 13.1 0.0 30.0 8.3 Afren ...... 133.5 2.0 171.2 73.6 Berendsen ...... 459.2 2.5 568.0 402.7 Borders & Souther . . .72.0 3.0 73.3 43.5 Tsy 1.250 27 . . . .122.65 0.13 127.0 104.8 BH Macro Ltd. GBP 2031.0 -8.0 2078.0 1661.0 Provident Financi . . .980.0 -9.5 1124.0 915.0 Bellway ...... 796.5 -1.5 800.0 540.5 Haynes Publishing . .192.0 -3.0 257.0 188.0 BG Group ...... 1467.0 -1.0 1564.5 1144.0 Bunzl ...... 910.5 32.5 912.5 676.5 BowLeven ...... 74.8 -4.3 382.3 62.0 Tsy 4.250 27 . . . . .118.80 0.41 122.7 98.4 BH Macro Ltd. USD . . .19.6 -0.1 20.2 16.2 Rathbone Brothers .1224.0 2.0 1250.0 977.0 Berkeley Group Ho .1295.0 0.0 1360.0 960.0 Huntsworth ...... 41.9 -0.4 81.0 32.3 BP ...... 494.8 -1.2 501.4 363.2 Cape ...... 446.3 1.8 591.5 295.0 Brooks Macdonald .1152.5 0.0 1372.5 940.0 Tsy 6.000 28 . . . .143.30 0.41 148.0 120.1 BlackRock World M .712.5 -10.0 815.5 574.5 Record ...... 11.6 0.0 35.5 11.4 Cairn Energy ...... 346.4 -1.6 531.8 291.9 Capita ...... 648.0 13.5 786.5 611.5 Cluff Gold ...... 93.5 -0.5 125.8 66.5 Tsy 4.750 30 . . . .125.47 0.64 130.5 103.6 BlueCrest AllBlue . . .164.2 0.1 176.2 160.6 RSM Tenon Group . . . .5.7 -0.3 55.0 5.6 EnQuest ...... 117.2 -0.1 158.5 85.7 Carillion ...... 323.8 1.2 403.2 281.0 Cove Energy ...... 147.8 1.8 152.0 61.0 Tsy 4.125 30 . . . .312.24 0.34 322.8 263.4 British Assets Tr . . . .125.9 -0.1 139.5 109.0 Schroders ...... 1568.0 -34.0 1906.0 1183.0 MAIN CHANGES UK 350 Essar Energy ...... 127.0 -2.0 525.5 120.0 De La Rue ...... 1001.0 6.5 1003.0 699.0 Daisy Group ...... 106.0 0.0 127.0 88.0 Tsy 4.250 32 . . . . .117.90 0.70 123.1 96.7 British Empire Se . . .444.0 0.3 533.0 404.0 Schroders (Non-Vo .1264.0 -18.0 1554.0 970.0 Exillon Energy ...... 247.3 -10.3 469.7 184.2 Diploma ...... 397.4 0.0 425.5 263.5 EMIS Group ...... 435.0 -2.5 580.0 397.5 Tsy 4.250 36 . . . . .118.02 0.81 123.9 95.9 Caledonia Investm .1500.0 0.0 1816.0 1337.0 Tullett Prebon ...... 317.0 0.0 428.6 262.3 Risers%% Fallers Heritage Oil ...... 193.0 -2.9 332.2 160.0 Electrocomponents .238.5 1.1 294.9 182.2 Faroe Petroleum . . . .162.5 -2.5 190.0 130.0 Tsy 4.750 38 . . . .127.42 0.85 134.2 103.9 City of London In . . .294.5 -0.5 306.9 257.0 Walker Crips Grou . . .40.0 0.0 51.5 40.0 Ophir Energy ...... 376.0 2.0 377.3 184.5 Experian ...... 939.5 10.0 939.5 665.0 Gulfsands Petrole . . .172.5 -0.8 342.0 142.5 Tsy 4.500 42 . . . .123.93 0.96 130.8 100.1 Dexion Absolute L . .140.6 0.4 151.0 130.0 Perform Group . . . . .276.8 7.1 Cable & Wireless W . .26.7 -6.6 Premier Oil ...... 427.1 6.6 521.0 310.0 Filtrona PLC ...... 398.0 -2.2 408.0 293.0 GW Pharmaceutical . .90.5 -0.3 130.0 78.5 Edinburgh Dragon . .244.3 0.1 252.0 201.4 FIXED LINE TELECOMS Misys ...... 308.4 6.2 Aquarius Platinum . .139.5 -6.6 Royal Dutch Shell . .2331.5 35.0 2402.0 1883.5 G4S ...... 283.5 3.7 291.0 219.9 H&T Group ...... 330.0 7.0 395.0 277.0 Edinburgh Inv Tru . . .479.0 4.8 492.2 414.9 BT Group ...... 214.7 -1.0 216.8 161.0 Mondi ...... 566.0 5.6 Rank Group ...... 129.5 -6.2 Royal Dutch Shell . .2361.5 35.5 2489.0 1890.5 Hays ...... 80.6 -1.1 130.0 58.9 Hargreaves Servic .1192.0 -28.0 1220.0 855.0 Electra Private E . . .1664.0 19.0 1755.0 1287.0 Cable & Wireless . . . .37.5 -0.5 51.2 31.3 Salamander Energy .243.4 0.3 317.6 182.3 Homeserve ...... 249.8 -0.3 532.0 218.5 Healthcare Locums . . . .3.4 -0.2 4.0 3.4 F&C Inv Trust ...... 307.0 0.6 327.9 261.5 Genus ...... 1117.0 5.0 Daejan Holdings . . .2817.0 -5.5 Cable & Wireless . . . .26.7 -1.9 76.0 14.2 Carpetright ...... 604.0 4.5 Royal Bank of Scot . . .26.7 -5.2 Soco Internationa . . .307.7 -0.8 400.0 278.0 Howden Joinery Gr . .111.8 -3.4 127.5 93.1 Immunodiagnostic . .422.0 12.5 1218.0 288.8 Fidelity China Sp . . . . .82.8 0.4 114.3 70.0 COLT Group SA . . . . .92.6 -0.2 156.2 84.1 Tullow Oil ...... 1526.0 3.0 1540.5 945.5 Interserve ...... 307.5 -5.2 341.3 239.8 Impellam Group . . . .292.5 27.5 387.5 212.5 Fidelity European . .1098.0 7.0 1287.0 912.0 KCOM Group ...... 71.4 -1.9 84.0 58.0 Telecity Group ...... 676.0 4.2 Ocado Group ...... 100.0 -4.2 Intertek Group . . . . .2230.0 35.0 2234.0 1738.0 Iomart Group ...... 140.0 -0.8 144.0 85.5 Herald Inv Trust . . . . .509.0 1.0 545.5 419.0 Spirit Pub Company . .57.8 4.1 Logica ...... 80.3 -4.2 OIL EQUIPMENT & SERVICES AEROSPACE & DEFENCE TalkTalk Telecom . . .140.0 2.2 151.7 118.9 Michael Page Inte . . .423.0 -4.4 567.0 323.0 James Halstead . . . . .492.3 2.3 500.0 410.0 HICL Infrastructu . . .120.0 -0.1 121.3 112.7 Telecom Plus ...... 646.0 1.0 802.0 440.0 Bunzl ...... 910.5 3.7 Exillon Energy ...... 247.3 -4.0 Amec ...... 1100.0 -12.0 1207.0 740.5 Mitie Group ...... 267.0 2.4 271.0 195.9 London Mining . . . . .276.0 -14.3 436.5 257.5 BAE Systems ...... 329.4 9.4 355.7 248.1 Impax Environment .102.4 0.4 125.4 88.5 Catlin Group Ltd. . . .440.4 3.1 Dixons Retail ...... 14.2 -3.9 Hunting ...... 780.0 -13.0 845.0 530.0 PayPoint ...... 575.5 0.0 585.0 327.3 Lupus Capital ...... 126.5 -1.0 150.0 86.0 FOOD & DRUG RETAILERS Chemring Group . . . .420.5 2.5 736.5 368.8 John Laing Infras . . .110.5 -0.1 110.6 103.4 BAE Systems ...... 329.4 2.9 Rotork ...... 1902.0 -3.7 Kentz Corporation . .468.4 0.2 508.0 347.0 Premier Farnell . . . . .216.5 -3.2 308.8 144.5 M. P. Evans Group . .448.0 -2.5 475.0 371.0 Cobham ...... 192.3 0.5 236.5 165.9 JPMorgan American .920.0 4.0 924.0 721.5 Booker Group ...... 75.0 -1.0 80.0 54.5 Lamprell ...... 330.0 2.0 395.2 220.7 Regus ...... 111.1 1.0 119.0 64.0 Majestic Wine ...... 419.0 0.0 510.0 315.0 Meggitt ...... 372.3 7.3 397.6 304.9 JPMorgan Asian In . .201.5 -0.4 244.0 170.1 Greggs ...... 538.5 -5.0 550.5 445.0 Price Chg High Low Price Chg High Low Petrofac Ltd...... 1540.0 8.0 1603.0 1108.0 Rentokil Initial ...... 75.7 -1.2 100.9 58.2 May Gurney Integr . .293.5 1.0 302.0 234.0 QinetiQ Group ...... 143.4 0.9 144.2 101.5 JPMorgan Emerging .561.0 0.5 610.5 480.1 Morrison (Wm) Sup .291.3 0.3 328.0 268.5 Wood Group (John) .710.5 15.5 715.8 469.9 RPS Group ...... 224.3 0.3 253.0 156.6 Monitise ...... 36.5 0.0 40.0 20.5 Rolls-Royce Holdi . . .779.5 0.0 786.5 557.5 JPMorgan European .726.0 -1.0 983.5 624.0 Ocado Group ...... 100.0 -4.4 259.3 52.9 Serco Group ...... 534.5 3.0 618.5 458.0 Mulberry Group . . . .1878.0 -7.0 1938.0 1065.0 Bovis Homes Group .498.8 5.5 500.0 326.5 Informa ...... 411.7 0.1 461.1 313.9 PERSONAL GOODS Senior ...... 185.3 2.5 190.6 132.6 JPMorgan Indian I . . .385.2 1.2 459.0 313.1 Sainsbury (J) ...... 289.9 -1.2 389.3 263.5 Persimmon ...... 562.0 3.0 565.5 374.0 ITE Group ...... 230.9 0.3 258.2 157.7 Shanks Group ...... 105.0 -0.6 130.9 90.8 Nanoco Group ...... 63.5 1.0 93.3 38.0 Ultra Electronics . . .1628.0 8.0 1830.0 1305.0 JPMorgan Russian .559.0 -2.5 741.0 415.1 Tesco ...... 314.2 -5.3 420.1 312.4 Reckitt Benckiser . .3536.0 2.0 3578.0 3015.0 ITV ...... 78.5 -1.2 93.5 51.7 Burberry Group . . . .1423.0 30.0 1600.0 1092.0 SIG ...... 101.4 -1.8 153.5 77.0 Nautical Petroleu . . .327.3 -1.3 452.0 223.5 Law Debenture Cor . .375.5 2.5 385.0 321.0 PZ Cussons ...... 315.2 -2.5 387.9 285.0 Travis Perkins ...... 956.0 1.0 1090.0 715.0 Nichols ...... 603.8 -0.3 615.0 410.0 AUTOMOBILES & PARTS FOOD PRODUCERS Redrow ...... 129.5 0.4 136.2 103.5 Johnston Press ...... 6.2 -0.1 12.8 4.1 Mercantile Inv Tr . . . .993.0 -4.0 1137.0 823.0 Taylor Wimpey ...... 44.6 0.2 45.3 28.7 Mecom Group ...... 201.0 -2.3 310.0 134.5 Supergroup ...... 516.0 -12.0 1758.0 435.2 Wolseley ...... 2320.0 2.0 2369.4 1404.0 Numis Corporation . . .99.0 5.5 126.0 72.0 GKN ...... 218.8 -0.5 245.0 157.0 Merchants Trust . . . .381.2 -2.7 431.8 341.5 Associated Britis . .1210.0 11.0 1210.0 940.0 Moneysupermarket. .120.6 -1.3 123.2 84.8 Pan African Resou . . .17.8 0.3 17.8 9.5 INDUSTRIAL ENGINEERING PHARMACEUTICALS & BIOTECH TECHNOLOGY HARDW. & EQUIP. BANKS Monks Inv Trust . . . .333.5 0.8 367.9 298.1 Cranswick ...... 839.0 2.5 862.0 588.5 Pearson ...... 1206.0 9.0 1255.0 1013.0 Patagonia Gold ...... 36.8 -0.8 70.0 35.5 Murray Income Tru . .650.5 -4.0 673.0 568.0 Dairy Crest Group . . .331.4 -1.2 409.7 311.0 Bodycote ...... 336.0 5.5 397.7 225.6 Perform Group . . . . .276.8 18.3 282.0 150.0 AstraZeneca ...... 3017.5 5.0 3194.0 2543.5 ARM Holdings ...... 582.5 7.0 651.0 464.0 Prezzo ...... 62.8 -1.8 71.5 53.5 Barclays ...... 234.9 -2.1 333.6 138.9 Murray Internatio . . .973.0 2.0 991.5 818.5 Devro ...... 281.6 -0.7 296.9 231.5 Fenner ...... 457.4 0.4 468.5 280.0 Reed Elsevier ...... 536.5 2.5 584.0 461.3 BTG ...... 347.0 -0.8 351.3 210.1 CSR ...... 228.9 -3.7 447.0 154.1 Pursuit Dynamics . . . .85.4 -3.6 409.0 67.0 HSBC Holdings . . . . .561.5 -2.9 730.9 463.5 Perpetual Income . . .264.2 -0.3 276.0 236.5 Tate & Lyle ...... 695.5 5.5 720.5 520.0 IMI ...... 923.0 2.0 1119.0 636.5 Rightmove ...... 1351.0 22.0 1408.0 857.0 Genus ...... 1117.0 53.0 1117.0 853.5 Imagination Techn . .618.0 0.5 630.5 296.9 Rockhopper Explor .363.8 6.5 372.5 141.0 Lloyds Banking Gr . . .34.3 -1.0 69.3 21.8 Personal Assets T .34400.0 10.0 34490.030210.0 Unilever ...... 2080.0 5.0 2189.0 1793.0 Melrose ...... 373.1 -1.5 388.0 268.0 STV Group ...... 109.0 -2.0 168.0 76.3 GlaxoSmithKline . . .1440.0 7.0 1497.0 1138.5 Spirent Communica .130.2 -1.6 160.0 105.8 RWS Holdings ...... 478.5 -1.5 495.0 345.0 Royal Bank of Sco . . .26.7 -1.5 49.0 17.3 Polar Cap Technol . .368.0 2.0 390.0 299.5 Hikma Pharmaceuti .741.0 -1.0 869.0 555.5 Secure Trust Bank .1005.0 0.0 1025.0 755.0 FORESTRY & PAPER Northgate ...... 242.2 -7.8 346.7 190.9 Tarsus Group ...... 148.5 1.0 165.0 119.5 TOBACCO Standard Chartere .1585.5 -27.0 1712.5 1169.5 RIT Capital Partn . . .1218.0 -18.0 1360.0 1173.0 Rotork ...... 1902.0 -72.0 1979.0 1501.0 Trinity Mirror ...... 47.0 -1.5 89.0 37.5 Shire Plc ...... 2267.0 21.0 2270.7 1671.0 Songbird Estates . . .108.0 3.0 160.3 103.0 Scottish Inv Trus . . . .483.0 0.0 524.0 417.0 Mondi ...... 566.0 30.0 664.0 413.5 British American . .3147.0 17.5 3155.5 2300.0 Valiant Petroleum . . .460.0 -8.0 645.0 400.0 BEVERAGES Spirax-Sarco Engi . .2000.0 6.0 2089.0 1649.0 UBM ...... 583.5 4.0 725.0 416.0 REAL ESTATE INVEST. & SERV. Scottish Mortgage . .688.0 1.0 781.0 565.0 Weir Group ...... 1960.0 -23.0 2218.0 1375.0 UTV Media ...... 120.5 -2.6 150.0 92.5 Imperial Tobacco . .2473.0 19.0 2473.0 1878.0 Young & Co's Brew . .642.5 -10.0 712.0 565.0 AG Barr ...... 1228.0 -18.0 1395.0 1031.0 SVG Capital ...... 252.2 -1.8 279.8 165.1 GAS, WATER & MULTIUTILITIES Capital & Countie . . .194.9 -1.2 203.7 142.8 Evraz ...... 428.6 3.7 460.5 315.0 Wilmington Group . . .83.3 -0.3 175.0 78.5 TRAVEL & LEISURE Britvic ...... 379.9 1.0 444.0 289.9 Temple Bar Inv Tr . . .899.5 -2.0 952.0 791.0 Centrica ...... 292.0 0.5 345.8 278.8 Ferrexpo ...... 334.4 -9.7 499.0 238.7 WPP ...... 799.0 5.5 846.5 578.0 Daejan Holdings . . .2817.0-163.0 3030.0 2282.0 Diageo ...... 1509.5 6.5 1518.0 1112.0 Templeton Emergin .624.5 2.0 684.5 497.0 International Pow . . .334.9 3.6 347.7 279.4 Talvivaara Mining . . .336.4 -7.0 607.0 195.2 Yell Group ...... 4.9 -1.0 11.0 3.4 F&C Commercial Pr .102.4 -0.5 108.0 92.6 Betfair Group ...... 877.5 -2.5 1030.0 567.0 SABMiller ...... 2558.0 20.5 2558.0 1979.0 TR Property Inv T . . .152.4 -1.8 206.1 136.2 National Grid ...... 641.5 2.5 649.5 543.5 BBA Aviation ...... 199.0 2.0 240.0 156.0 Grainger ...... 103.1 -2.9 133.2 77.3 Bwin.party Digita . . .168.1 -3.2 204.0 100.6 TR Property Inv T . . . .70.5 0.4 94.0 59.8 Pennon Group ...... 697.5 11.0 737.5 584.5 MINING London & Stamford .110.3 -0.5 140.0 103.9 Carnival ...... 1914.0 1.0 2975.0 1742.0 CHEMICALS INDUSTRIAL TRANSPORTATION Witan Inv Trust . . . . .486.5 -2.4 533.0 401.5 Severn Trent ...... 1541.0 15.0 1600.0 1375.0 African Barrick G . . .520.0 2.0 616.5 393.5 Savills ...... 355.3 -5.2 427.1 256.2 Compass Group . . . .634.5 -0.5 636.0 512.5 AZ Electronic Mat . . .313.2 1.3 338.1 206.1 FINANCIAL SERVICES United Utilities . . . . .605.0 7.5 637.0 551.0 Stobart Group Ltd . . .125.8 -1.5 155.4 112.0 Allied Gold Minin . . .129.0 -1.0 281.3 34.4 UK Commercial Pro . .72.9 -1.0 85.5 65.1 Domino's Pizza UK . .477.5 -1.6 526.0 377.0 Croda Internation . .2077.0 25.0 2082.0 1483.0 Unite Group ...... 190.7 -5.0 224.1 152.9 easyJet ...... 458.8 -0.5 476.1 301.0 GENERAL INDUSTRIALS Admiral Group ...... 968.0 0.0 1754.0 787.0 Anglo American . . .2772.0 -45.0 3437.0 2138.5 Elementis ...... 159.6 -4.5 187.4 107.5 3i Group ...... 192.7 -6.8 317.0 166.9 Anglo Pacific Gro . . .308.2 -3.8 369.3 237.9 FirstGroup ...... 302.9 -2.0 378.0 301.8 http://corporate.webfg.com Johnson Matthey . .2306.0 36.0 2308.0 1523.0 3i Infrastructure . . . .122.9 -0.5 124.0 113.4 NON LIFE INSURANCE REAL ESTATE INVEST. TRUSTS Cookson Group . . . . .621.0 -0.5 724.5 395.8 Antofagasta ...... 1337.0 -11.0 1491.0 900.5 Go-Ahead Group . . .1299.0 -13.0 1598.0 1190.0 mailto: Victrex ...... 1300.0 -5.0 1590.0 1025.0 Aberdeen Asset Ma .263.5 -0.1 266.3 167.8 Rexam ...... 376.8 -3.0 400.0 299.8 Amlin ...... 354.7 -0.7 427.0 270.6 Aquarius Platinum . .139.5 -9.8 419.0 137.6 Big Yellow Group . . .299.6 -0.4 344.4 218.0 Greene King ...... 519.0 -1.5 523.0 410.0 Yule Catto & Co . . . . .207.2 -0.3 253.0 148.0 Ashmore Group . . . .391.7 -3.6 420.0 301.5 RPC Group ...... 388.9 -0.8 395.0 231.5 Beazley ...... 148.3 0.6 150.0 109.6 BHP Billiton ...... 2072.0 -10.5 2631.5 1667.0 British Land Co . . . . .489.9 -5.3 629.5 444.0 InterContinental . . .1372.0 -30.0 1435.0 955.0 [email protected]

EUSHARES USSHARES Price Chg High Low Price Chg High Low AIR LIQUIDE...... 98.12 0.06 100.65 80.90 3M ...... 87.99 -0.04 9 8.19 68.63 ALLIANZ ...... 87.49 -0.59 108.85 56.16 ABBOTT LABS ...... 55.08 -0.08 5 6.84 45.28 ANHEUS-BUSCH INBEV ...... 49.25 0.12 49.57 33.85 ALCOA ...... 10.21 -0.12 1 8.47 8.45 ARCELORMITTAL...... 16.72 -0.32 28.19 10.47 ALTRIA GROUP ...... 29.27 0.04 30.40 23.20 AXA...... 12.17 -0.25 16.10 7.88 AMAZON.COM...... 191.30 -0.29 2 46.71 160.59 BANCO SANTANDER...... 6.42 -0.06 9.00 4.94 AMERICAN EXPRESS...... 51.96 - 0.11 53.80 41.30 BASF SE...... 61.23 0.50 70.22 42.19 AMGEN INC...... 67.84 -0.36 7 0.00 47.66 BAYER ...... 55.00 0.00 59.44 35.36 APPLE ...... 509.46 6.86 5 09.56 310.50 BBVA...... 7.12 -0.02 9.17 4.94 AT&T...... 30.07 0.03 3 1.94 27.27 BMW ...... 70.02 -0.54 73.85 43.49 BANK OF AMERICA ...... 7.98 -0.27 1 4.95 4.92 BNP PARIBAS...... 33.52 -0.81 59.93 22.72 BERKSHIRE HATAW B...... 78.92 -0.52 8 7.65 65.35 CARREFOUR ...... 17.36 -0.32 31.64 14.66 BOEING CO...... 75.56 0.71 8 0.65 56.01 CRH PLC ...... 15.15 -0.10 17.40 10.28 CATERPILLAR ...... 11 4.45 0.75 1 16.55 67.54 DAIMLER ...... 46.96 -0.09 57.22 29.02 CHEVRON ...... 106.49 0.11 1 10.99 86.68 DANONE...... 49.00 0.55 53.16 41.92 CISCO SYSTEMS...... 20.07 0.04 20.49 13.30 DEUTSCHE BANK ...... 33.00 -0.65 48.70 20.79 CITIGROUP ...... 32.08 -0.80 4 9.60 21.40 DEUTSCHE BOERSE ...... 49.94 1.16 62.23 35.65 COCA-COLA ...... 68.90 0.46 71.77 61.29 DEUTSCHE TELEKOM ...... 8.94 0.04 11.38 7.88 COMCAST CLASS A ...... 27.25 -0.16 2 7.52 19.19 E.ON...... 16.37 0.02 25.00 12.50 CONOCOPHILLIPS...... 73.60 0.79 8 1.80 58.65 ENEL...... 3.31 0.02 4.86 2.78 CVS/CAREMARK...... 43.38 0.55 4 4.09 31.30 ENI ...... 17.38 0.09 18.66 11.83 DU PONT(EI) DE NMR...... 49.66 -0.94 5 7.00 37.10 FRANCE TELECOM ...... 11.34 -0.01 16.65 11.09 EXXON MOBIL...... 84.67 0.25 88.23 63.47 GDF SUEZ ...... 19.40 -0.04 30.05 17.65 GENERAL ELECTRIC...... 18.94 -0.13 2 1.65 14.02 GENERALI ASS...... 12.14 0.02 17.05 10.34 GOOGLE A...... 609.76 -2.44 6 70.25 473.02 IBERDROLA ...... 4.69 0.04 6.10 4.16 HEWLETT PACKARD ...... 29.08 0.33 4 9.12 19.92 INDITEX ...... 68.12 0.09 69.40 50.92 HOME DEPOT...... 46.06 0.13 4 6.21 28.13 ING GROEP CVA...... 6.57 -0.04 9.50 4.21 IBM...... 192.22 -0.40 1 94.90 151.71 INTESA SANPAOLO ...... 1.48 -0.01 2.47 0.85 INTEL CORP ...... 26.78 0.08 2 7.00 19.16 KON.PHILIPS ELECTR ...... 15.45 -0.20 24.12 12.01 J.P.MORGAN CHASE...... 37.92 -0.38 4 8.36 27.85 L'OREAL...... 84.73 3.08 91.24 68.83 JOHNSON & JOHNSON...... 64.61 -0.07 6 8.05 55.76 LVMH...... 125.05 0.65 132.65 94.16 KRAFT FOODS A...... 38.50 0.10 3 9.06 24.30 MUNICH RE ...... 107.00 0.15 126.00 77.80 WORLD INDICES MC DONALD'S CORP ...... 99.55 -0.10 1 02.22 72.89 NOKIA...... 3.84 0.08 7.58 3.33 MERCK AND CO. NEW ...... 38.21 0.10 3 9.43 29.47 Price Chg %chg Price Chg %chg Price Chg %chg Price Chg %chg REPSOL YPF...... 20.94 -0.07 24.90 17.31 MICROSOFT...... 30.25 -0.33 3 0.80 23.65 FTSE 100 ...... 5899.87 -5.83 -0.10 S&P 500 ...... 1350.50 -1.27 -0.09 CAC 40 ...... 3375.64 -8.91 -0.26 BOVESPA SAO PAOLO . . 65038.53 -653.00 -0.99 RWE ...... 32.85 0.69 53.47 21.15 OCCID. PETROLEUM...... 104.00 -0.06 11 7.89 66.36 FTSE 250 INDEX...... 11245.69 -29.91 -0.27 NASDAQ COMPOSITE . . . 2931.83 0.44 0.02 SHANGHAI SE INDEX . . . . 2344.77 -7.08 -0.30 ISEQ OVERALL INDEX . . . 3093.44 -4.82 -0.16 SAINT-GOBAIN ...... 35.19 -0.15 47.64 26.07 ORACLE CORP...... 28.24 -0.19 3 6.50 24.72 FTSE UK ALL SHARE . . . . 3048.47 -3.68 -0.12 FTSEUROFIRST 300 . . . . . 1069.75 -1.88 -0.18 HANG SENG...... 20917.83 30.43 0.15 STRAITS TIMES ...... 2904.76 -1.93 -0.07 SANOFI...... 56.55 -0.23 57.42 42.85 PEPSICO ...... 63.52 -0.17 7 1.89 58.50 FTSE AIM ALL SH ...... 796.39 -3.58 -0.45 NIKKEI 225 ...... 9052.07 52.89 0.59 S&P/ASX 20 INDEX ...... 2546.40 0.00 0.00 IGBM ...... 882.58 -1.61 -0.18 SAP ...... 48.43 0.58 48.59 32.88 PFIZER ...... 21.33 0.03 22.17 16.63 DOW JONES INDUS 30 . . 12878.28 4.24 0.03 DAX 30 PERFORMANCE. . 6728.19 -10.28 -0.15 ASX ALL ORDINARIES . . . 4318.90 0.00 0.00 SWISS MARKET INDEX. . . 6163.82 -13.62 -0.22 SCHNEIDER ELECTRIC ...... 47.50 -0.26 61.83 35.00 PHILIP MORRIS INTL ...... 81.65 0.04 8 1.89 58.87 SIEMENS ...... 74.00 -0.49 99.39 62.13 COMMODITIES CREDIT & RATES PROCTER AND GAMBLE ...... 64.48 0.25 67.72 56.57 SOCIETE GENERALE...... 21.90 -0.84 52.70 14.32 QUALCOMM INC ...... 61.71 -0.03 6 1.99 45.98 TELECOM ITALIA...... 0.80 -0.01 1.16 0.70 LON GD ONCE FIX AM...... 1721.00 -6.00 TIN CASH...... 25300.00 -195.00 BoE IR Overnight ...... 0.500 0.00 Euro Base Rate ...... 1.500 0.00 SCHLUMBERGER ...... 77.80 -0.23 9 5.64 54.79 TELEFONICA ...... 13.09 0.03 18.59 12.50 SILVER LDN FIX AM ...... 33.66 -0.06 ZINC CASH ...... 2087.00 -25.00 BoE IR 7 days ...... 0.500 0.00 Finance house base rate ...... 1.500 0.00 TRAVELERS CIES ...... 59.16 0.17 6 4.17 45.97 BoE IR 1 month ...... 0.500 0.00 US Fed funds...... 0.250 0.00 TOTAL...... 41.10 0.06 44.55 29.40 MAPLE LEAF 1 OZ ...... 36.03 0.16 BRENT SPOT INDEX...... 118.28 1.06 UNITED TECHNOLOGIE ...... 84.64 -0.24 9 1.83 66.87 UNIBAIL-RODAMCO SE...... 143.90 -0.15 162.95 123.30 LON PLATINUM AM...... 1635.00 -28.00 BoE IR 3 months ...... 0.500 0.00 US long bond yield ...... 3.060 -0.08 UNITEDHEALTH GROUP ...... 54.46 0.61 5 4.49 41.27 SOYA ...... 1252.00 23.00 BoE IR 6 months ...... 0.500 0.00 European repo rate ...... 0.231 0.00 UNICREDIT...... 4.07 0.01 13.34 2.20 LON PALLADIUM AM ...... 689.00 -14.00 VERIZON COMMS ...... 38.04 -0.09 4 0.48 32.28 COCOA ...... 2199.00 43.00 LIBOR Euro - overnight ...... 0.281 0.00 Euro Euribor ...... 0.371 0.00 UNILEVER CVA...... 25.64 0.06 27.16 20.90 ALUMINIUM CASH ...... 2207.00 -11.00 VISA CL A...... 115.24 2.53 11 5.25 70.45 COFFEE...... 212.30 -3.00 LIBOR Euro - 12 months ...... 1.660 0.00 The vix index ...... 20.35 1.31 VINCI...... 38.04 -0.04 45.48 28.46 COPPER CASH ...... 8511.00 -79.50 LIBOR USD - overnight...... 0.144 0.00 The baltic dry index ...... 729.0 14.00 WAL-MART STORES...... 62.22 0.43 6 2.63 48.31 VIVENDI ...... 16.31 0.09 21.37 14.10 LEAD CASH ...... 2127.00 -41.00 KRUG...... 1791.30 3.10 LIBOR USD - 12 months ...... 1.067 0.00 Markit iBoxx...... 240.94 0.61 WALT DISNEY CO ...... 41.60 -0.19 4 4.34 28.19 VOLKSWAGEN VORZ ...... 141.05 -3.35 152.20 86.40 NICKEL CASH...... 20975.00 -50.00 WHEAT ...... 163.75 0.75 Halifax mortgage rate ...... 3.990 -0.02 Markit iTraxx ...... 134.57 0.18 WELLS FARGO & CO...... 30.42 -0.20 3 4.19 22.58 26 Business Features WORDS BY MARC SIDWELL One sponsor is helping everybody else onto the Olympic springboard

COUNTDOWN TO THE LONDON 2012

OLYMPIC AM / CITY LEAN LAURA PICTURE: GAMES 163 DAYS TO GO CBS Outdoor’s UK head explains why it is the official outdoor advertising services provider for 2012 WHAT WAS YOUR BRAND’S PRIMARY REASON FOR BEING Q. INVOLVED WITH THE GAMES? CBS Outdoor felt very heavily involved in the pitch for London A. 2012. We worked closely with TfL and the Mayor’s Office to help dress London when it was pitching itself for the Olympic Games. When the London 2012 organising committee Locog came out and said “we want a media partner, we want an advertising services partner to be used to promote the Olympic Games, to work hand in hand with our PR machine” we felt that we were a natu- ral fit for that. The benefit for us that we were able to showcase our fantastic assets and point to the great work we’ve done with Locog. We also get some insight on how the advertising has been received and then we are able to use that to promote our assets. But primarily we’re 41 per cent of the out of home London marketplace. About Making the most of the first public transport Games 23-24 per cent for the whole of the UK. Because we’re the Q A market leader in London it of the association areas we want to promote our assets to WHAT ADVICE CAN YOU GIVE just felt naturally right for us to & and exactly why we We all know every other business that wants to bene- NON-OFFICAL PARTNERS TO HELP be there. are doing it. fit. It’s estimated that a visitor to London Q. THEM MAKE THE MOST OF THE Of course it is a public transport it’s very easy for the Games will spend £85 a day, so COMMERCIAL OPPORTUNITIES Games, with every venue ticket includ- WHAT ARE THE KEY with 8.5m coming, that’s £700m of dis- PRESENTED BY THE OLYMPICS? ing a travelcard for the day, which is a COMMERCIAL to spend cretionary spending to be spent in perfect fit with our product. Q. OPPORTUNITIES AT THE shops, restaurants, theatres, films and so Don’t presume that everything’s GAMES FOR YOU? money but far on. Since 70 per cent of visitors are sold out, and don’t presume that WERE THERE ANY ISSUES THAT expected to use the underground to get A. if you’re not a sponsor you can’t WERE HARD TO RECONCILE TO GET You’ve got 8.5m spectators coming harder to get around, they’re going to be in close prox- do anything in London, because the Q. BOARD APPROVAL? to London, 10.5m coming to the imity to our advertising. As a sales and vicinity legislation is very clear and it A. UK in total. And 200,000 of those the value out. marketing business it’s about driving also doesn’t apply to everyone. We all know that it’s very easy to are forecasted to be opinion leaders and the revenues and the numbers and we For instance, book and entertainment spend money. It’s not so easy to businessmen, people who are going to be want to sell out, delivering our advertis- ads have been granted an exemption in A. get the value from the spending, making buying decisions about their ers great value, great audiences and the underground within the proximity and it’s very easy to execute badly. We advertising assets and media in the quality display. limit as they are such a part of its normal recognised there was a risk because we future. There’s going to be a huge From there we’ve got to make sure look and feel. CBS also sells the advertis- were providing a service as a sponsor. If amount of people in London. The spon- that this is a springboard for 2013, ing in Westfield Stratford City, which 70 we let the Olympics down, there’s a neg- sors want to reach those and activate because we don’t want this to be a one- per cent of Olympic visitors will go ative side to that. That was definitely a their sponsorship and association and hit wonder. We hope that sponsors to the through and again, Westfield Stratford concern, making sure that we could they’ve bought through the auction Olympic Games who have used out of City isn’t covered by the exclusion legisla- deliver what we said we were going to. process advertising space that’s in the home to activate their sponsorship tion either, because it’s an enclosed envi- Also, a lot of Olympic sponsors are busi- vicinity, within 300 metres of an event or recognise how effective it has been for ronment. We will manage all these rules ness to consumer brands but we’re busi- a location. It’s really important for us to them and continue to advertise during and make sure that people don’t fall foul ness to business – we’ve got a very small be sold out in those vicinities. We have 2013 and on. So it isn’t just about one big of them. There’s still lots of opportunity in family that we need to be selling our- still got some opportunities for sponsors, spike but it’s about how do we keep London – come and talk to us. selves to. We have to get into that family so we’re explaining the opportunities those advertisers interested in CBS Jason Cotterrell is UK country director for and make sure they recognise the value that are out there. Outside of the vicinity Outdoor. CBS Outdoor. 27

WORDS BY Lifestyle | Motoring RYAN BORROFF Fortwo: a good scooter but not a car

I haven’t driven a Smart car in about a decade. This made me remember why.

istorically, automakers partnering with fashion labels to design “cool” cars have had mixed results. Take Hthis Smart limited edition Fortwo micro car, for example. It’s been given a makeover by British streetwear label Boxfresh. Whether your average Boxfresh fan a) has their eye on a two-seater Smart, b) can afford this limited edition two seater, or c) thinks the car represents urban cool, is a matter of conjecture. There are people who love the Smart Fortwo, it has an almost cult-like following around the world. It has bags of personali- ty and you can drive nose-in to park the car – which theoretically means you could park three of them in a standard car park- ing space – and it is undoubtedly nippy in town. The interior of the Boxfresh edition of the Smart Fortwo has been given a makeover to create a more exclusive ver- sion. It is significantly improved by “cognac” coloured leather, carbon fibre and chrome accents. There’s badging on the glovebox, gear stick and headrests to let you know you’re in one of just 55 limit- ed Fortwo coupes, though there is still use of some cheaper feeling plastics, which is for the car on the open road and it is clear tle less urgency – and the impact of that The interior looks idea of a car this small, there are rivals a shame. What is surprising is that the that the City is the Fortwo’s natural home. lag in the gear shifting is considerably great but that doesn’t such as the Toyota iQ, which is equally interior remains so characterful. Not bad Even here, though, the ride can be too reduced. make up for not being pint-sized but at least its design allows when you consider it has its design roots firm – speed bumps in particular can I’m not sure how much fun a Smart able to offer a couple you the flexibility to give a couple of peo- back in the early 1990s. And while the new seem menacingly high and must be nego- Fortwo is. But then I probably wouldn’t of people a lift. ple a lift. As a car, the Fortwo Boxfresh look is cool, this was really just an oppor- tiated at particularly low speeds. I found like Parkour either. While this car was edition is a compromise too far for most tunity for me to reassess the Smart after myself planning its use in the same way I revolutionary when it launched well over people, including me. But as a scooter it’s not having driven it for more than a would use a scooter. a decade ago, nowadays if you like the excellent. decade. It is an apt comparison. As a car, the This is a car that lacks flexibility more Smart Fortwo’s restrictions are obvious: it THE FACTS: than any other I have driven. It so hap- has little space, only seats two people and pened that my week with it coincided is pretty rubbish at speed on open roads. SMART FORTWO BOXFRESH EDITION with a launch in Birmingham. My choice Just like a scooter. Yet as a scooter it’s of how to travel there came down to driv- great – you don’t get wet, you have a car PRICE: £11,700 ing the Smart Fortwo or paying for an eye- body surrounding you in case anyone 0-62MPH: 13.7sec wateringly expensive peak train ticket. drives into you, the stereo is good and the TOP SPEED: 90mph And the rail travel nearly won. This is Boxfresh leather interior looks great. But – CO2 G/KM: 98g/km because driving a Fortwo on the motor- and here’s the big but – unlike a scooter way isn’t fun. You have to work the 70bhp, you can’t make progress through station- MPG COMBINED: 65.7mpg 1.0-litre three-cylinder petrol engine very ary traffic and parking isn’t free. hard to keep the car at speed and the driv- Five days into our time together I begin THE VERDICT: ing isn’t comfortable; it’s noisy from the to appreciate the Smart Fortwo Boxfresh DESIGN hhhii engine, the road and the wind. Power- for what it is. It can be a remarkably con- PERFORMANCE hhiii wise, there is certainly nothing left in venient runabout. I even became accus- PRACTICALITY hhiii reserve for overtaking. You feel very small. tomed to its stammering gearbox. Lift off VALUE FOR MONEY hhiii Smart, of course, makes no great claims the accelerator when driving – with a lit- CAR TALK BY RYAN BORROFF

MEET THE FIAT 500’S BIG BROTHER TOYOTA 2+2 GT PRICED AT UNDER £25,000 NEW LONDON-THEMED MINI ANNOUNCED Fiat is launching a bigger, crossover version of its super-successful Toyota has announced prices for its front-engined, rear-wheel drive GT Mini has launched its third London-inspired special edition – the Mini 500 city car at the Geneva motor show in March. The five-seater 86. The old-school sports car will cost as little as £24,995 when it goes Highgate – which joins the Mini Baker Street and Mini Bayswater versions. 500L (L stands for Large) will offer MPV-like space with an SUV-like on sale in June. Powered by a 197bhp 2.0-litre flat-four boxer engine, The convertible comes in special metallic chocolate paint with a drive and will be sold with a choice of TwinAir or 1.4-litre petrol the lightweight 2+2 sports coupe will be offered with a six-speed man- “Silvertouched Truffle” fabric roof and corresponding bonnet stripes. Inside engines or a 1.3 MultiJet II turbodiesel engine. ual or automatic transmission. the car is trimmed in Dark Truffle coloured leather and brushed alloy. 28

from 1 to 9 to solve Sudoku thispuzzle. tricky numbers the all contains block 3x3 each and column row, each Place thefrom 1 numbers to 9 in each empty cell so that each SATELLITE & CABLE TERRESTRIAL      QUICK CROSSWORD O CARDS TRATE I N LAST ISSUE’S A TIC STOI SALON FISHY LEO L I SOLUTIONS Lifestyle |TV&Games L BBC1 nentoa n-a Cricket One-Day International Snow the of 11.30pm Highlights League Champions UEFA Cricket 10pm 9.30pm Golf Tour Football League A 7pm 2 SPORTS SKY 7.30pm 7pm 1 SPORTS SKY ot n All ’n’ Boots k Sports! Sky Football League A Highlights League Champions Mundial Futbol comment. Football 10.30pm England. v Pakistan Cricket. Day hmin egeHighlights League Champions Mundial Football Highlights League Mundial odnNews London ih Draws Night Wednesday Lottery National The 10.25pm MasterChef 6pm Britain Foods Supermarket 8pm 7.30pm British of Best Bikers’ Hairy Zone: Sign Lister Anne Miss of Diaries Hear See FILM Update Lottery National Winkleman: Claudia with 2012 Film Story? the What’s Bridges Weatherview   U P I O IAFto Mundial Futbol FIFA Seven at News Sports Sky B News BBC rti’ Favourite Britain’s egeFootball League A rznRiver. Frozen R R SRIDE I ASTR E P 4.15am 4.45am-6am 1am uoenTu Weekly Tour European 4.30am i f rti:BCNews BBC Britain: Off Rip 5am-6am 3am uoenTu Weekly Tour European  nentoa One-Day International 9pm o’eo k Sports! Sky on You’re 2am einlNews Regional 2.30am H C I COL OAL ROYA N E E SWOR 9pm F SUDOKU 2.30am-4am IDLES ot n All ’n’ Boots 10pm 10.45pm EAChampions UEFA 1.30am 7pm A nietePATour PGA the Inside inZn:Secret Zone: Sign 12am    inZn:RpOff Rip Zone: Sign 6.30pm IAFutbol FIFA MAO V B nentoa One- International I 4am 8pm 1.30am 11.30pm UEFA B News BBC h n Show One The 2008. Y 9pm IAFutbol FIFA UEFA B News BBC H N R L inZone: Sign   COFFEE BREAK Kevin League A Champions 2am 10.30pm 11.55pm 10.35pm BBC CHOICE 7.30pm o’eon You’re 1.25am 11.15pm 3.30am FIFA 1am Kings      8pm Copyright Puzzle Press Ltd, www.puzzlepress.co.uk 14 4 4 8 9 52 25 3 5  14 63 9 8 2 7 7 3 12.45am Ashes. the of Out Club: Cricket Afghan FILM 11.20pm 10.30pm tribunal. his for prepares nervously Roger In: Got 10pm 9.50pm 9pm Blooms and 4am-6am 8pm 7pm Heroes 6.30pm 6pm B2ITV1 BBC2 rs Pass Press 11pm 10.30pm 10pm Magazine Cup World Tonight Rocky Real The Films: Extra Kicks: 5.30pm ESPN Open Welsh Club Club 6.55pm EUROSPORT BRITISH 9pm Rugby Total 7pm 3 SPORTS SKY ih ih 3 Night Fight Fighter egeFootball League A orGolf Tour aesot World Watersports Bowls League Premier 3 Night Fight Warriors Cage KAKURO 1 683 8 8 9 5    1 6 9 9 7 3 5 8.15pm 8pm ig fteSnow the of Kings IAFto Mundial Futbol FIFA saet h Country the to Escape Versailles olShow Goal ghas uzshow. Quiz Eggheads: CHOICE ACpPeiwShow Preview Cup FA oe a aeJust Have Val & Roger 11 9 8 2 2 7 10.30pm 2010. 9.45pm ieSreA Serie Live Equestrian 1.30am rme egeWorld League Premier Coast rti’ Heritage Britain’s ofClub Golf 11 4 8 9 9 8 2 3 7 12am B erigZone Learning BBC B News BBC esih:Weather Newsnight:     7.45pm 8pm 10pm-12.40am ieSokr The Snooker: Live 12.30am 1 1 4 8 9 2 5 es Butterflies Bees, SNKcs Extra Kicks: ESPN 4 6 2 2 7 3 3 5 ei A Serie 11.30pm aeWarriors Cage rn ol Sport World Trans aeFighter Cage trvle– Storyville 10pm 7.55pm 8.05pm 4 6 6 8 9 9 7 5 nwor FIS Snowboard 7.30pm 8.15pm 9.15pm 5am-6am Champions 7.30pm Cage 1.45am 9.30pm ESPN Riders 4am Yacht Boxing ESPN separate block. a in be must it but column, more than once in a row or digit may same The occur ablock. in twice digit same the use not must you and 1-9 digits the use only You can it. of left the to or above box the in total the to up adds block each that so grid the Fill ESPN NBA 2am is at least one nine-letter word in the wheel. the in word nine-letter one least at is There word. every in once used be only can letters or more, all the contain must central and letter proper nouns. Each word be must of three letters or words foreign plurals, be may which of none ten minutes to find as many words as possible, have you Wordwheel, the in letters the only Using KAKURO The nine-letter word was word nine-letter The WORDWHEEL WORDWHEEL PROVIDENT T esHeadlines News ITV 12.30am 11.35pm Time Extra League: 10.35pm 10.30pm 10pm 7.45pm). (Kick-off Arsenal v Milan AC League: Champions Wayne. John starring and by directed FILM 2.35am 7.30pm 7pm 6.30pm 6pm Nightscreen Avoid? Bride the Tell Parents Suspicious Proposals 1am aiyGuy Family Glory of Blades Parents Suspicious Bride the Tell otr:Yu iei hi Hands Their in Life Your Doctors: 7pm THREE BBC 3.30am Investigation 1.50am 11pm Food to Slave Circle Secret 7pm LIVING SKY Investigation 5.10am-6am Kids and rve Show Preview 5.30am-6am Extra Rivals – A Serie o’ elteBiet e The Be: to Bride the Tell Don’t ng ar,Avoid? Marry, Snog, rmnlMinds Criminal 3am Emmerdale Bones odnTonight London 4.25am-5.20am T esa Ten at News ITV 1960. S:CieScene Crime CSI: Bones 4.45am CHOICE T News ITV SUDOKU 1.55am inpadRansom and Kidnap ieNABasketball NBA Live h Zone; The EAChampions UEFA odnNews London 12.15am 12am 9pm 3.55am 9pm 2.40am S:CieScene Crime CSI: 10pm lntSpeed Planet 5am-5.30am 2.45am h lm:Western, Alamo: The 4.20am 2007. 2.15am ohn oDeclare to Nothing u,Sxand Sex Sun, lieRichards: Claire u,Sxand Sex Sun, rmnlMinds Criminal 2.55am 0mFILM 10pm ieUEFA Live rmnlMinds Criminal 8pm mrcnDad! American 11.30pm ng Marry, Snog, Maury SNKicks: ESPN yWife My ACup FA Junior 30 45 45 47 14 10 12 11 3 8pm The Don’t 12 12 ITV 7          34 15 Don’t     33 15    816 28 12    7 5.25am-6.10am Sisters 3.10am 12.05am 11.05pm 10.55pm show. affairs current 10pm 9pm nurseries. in working by skills childcare their improve to try Men series. 8pm 7.55pm 7pm 6.30pm 6pm CHANNEL4 2.50am 2.30am 2.05am agTheory Bang 4.15am-6am 5am-6am America Under Down Robinson Wars naPlane a on Vartan. Michael and Barrymore Drew with comedy, enKissed Been Mother Your hpe:Sno essJunior Versus Senior Chopper: 8pm 7pm DISCOVERY 12am 11pm People Swamp Stars 7pm HISTORY 7pm E4 16 5          29 12 erGyl:Br Survivor Born Grylls: Bear Wars Storage Hollyoaks hl Wars Whale hne News 4 Channel 1am    n onEeyMinute Every Born One Simpsons The 8pm ad acr:New Daycare: Daddy oyRbno onUnder Down Robinson Tony anStars Pawn 17 D 86 4.30am 0OCokLv:Satirical Live: O’Clock 10 F 90210 HowIMetYourMother ue fEngagement of Rules Greek 4am 4thought.tv     Hollyoaks 14 13 2006. h Inbetweeners The ahCowboys Cash wm People Swamp ui n4 on Music admActs Random nyi America in Only 24 11 1999.          .5mFILM 7.55pm 1.05am Switched TheTrueStory 3.35am 10pm 7.30pm 3.50am 42 17 R     E 0mFILM 10pm ieTeam Time Countdown 12.10am 23 13 9pm 12.30am Romantic 7.30pm 23 10 17 I Scrubs trg Wars Storage 3am gyBetty Ugly o Met I How American 11 9 rtes& Brothers 2am V Y h Big The 35 17 9pm Never nyin Only Pawn Storage Snakes Tony 29 4 5 S I CHANNEL5 12.50am 11.50pm Unit Victims Special 10.55pm Intent Criminal 10pm 9pm 9 at 8pm Update News 5 7pm 6.30pm 6pm 1.05am Doctor iheasWl Challenge Wild Michaela’s 4.45am 10pm 8 Plus Kate 5.10am-6am Wars Hour Happy Joly’s 1.50am Hunter Bounty the Fringe 9pm 8pm SKY1 Bodies Team Trauma ER the of Stories Untold 7pm HEALTH & HOME DISCOVERY ER ayStory Baby etoe nSeconds in Destroyed Mythbusters 3am eirVru Junior Versus Senior Survivor Catch 10pm 3am hee Dealers Wheeler uennyUS Supernanny rtCp:Wro Crime on War Cops: Brit bs:AYa oSv yLife My Save to Year A Obese: obyBuilders: Cowboy 4.20am NCIS Away and Home eiomE:5News 5 ER: Benidorm 12am marsigBodies Embarrassing Carfellas 11pm 2am 18 11 10 9 8 4 1 ACROSS 22 21 19 17 16 15 14 13 4.25am Law&Order: SuperCasino aaiFive-0 Hawaii uennyUS Supernanny idieSOS Wildlife 1am 5Newsat6.30         oe:TeBgGame Big The Poker: nieHollywood Inside Law&Order: 5am-6am 9pm nodSoiso the of Stories Untold erGyl:Born Grylls: Bear Soft creamy French (4)Soft cheese Gentle blow (3) (6) amortar Tool with used Building block (4) Motor coaches (5) (5) atintently Look Decanter (6) By word of mouth (4) Unrestrained merrymaking (5)Unrestrained merrymaking deplorable manner (5) In or an unfortunate (4) irritation Skin (3) match ofatennis Division (abbr) (4) shop Type food of to Holy Saturday (4) Wednesday Ash from weekdays of 40 Period (7) Asia and Africa of antelope Graceful a Dogs Mad 5.30am-6am o’ ogtteLyrics the Forget Don’t mrcnChopper: American 1am inMan Lion QUICK CROSSWORD 11pm idieSOS Wildlife ruaTeam Trauma 3.30am 1am Embarrassing 2am 8pm 4am Deadliest 5.10am-6am 3.50am ayTales Baby 2.40am  12am Fringe 4am 12am Carfellas o and Jon Road House 11pm  Dog A 10pm Dom VPICK TV n ftetpsdsi tl’ ei A. Serie Italy’s in sides top the of face one to travel Gunners the as match, first-leg last-16 the of 7.45pm).Coverage (Kick-off Arsenal v Milan AC 7.30PM ITV1, LEAGUE CHAMPIONS UEFA LIVE pollen. in rich flowers embrace to gardeners encourages and insect pollinators, to friendlier be can gardens urban how explores Raven Sarah 8.00PM BBC2, BLOOMS AND BUTTERFLIES BEES, Cumbria. in cook to on go best six the and produce, Scottish celebrating dishes produce to challenged are chefs seven remaining The 9.00PM BBC1, MASTERCHEF    CITY   A.M.     20 12 8 7 6 5 3 2 DOWN 13 15 FEBRUARY 2012 Prompt (3) (3-4) authentic necessarily not but quaint, Attractively Snubbed (7) Snubbed (9) button Belly or mentally (9) psychologically Burdened example (9) for crustacean, Mollusc or (3,4) Release quiet (7) peace and affording Place container (3) Metal CITYA.M. 15 FEBRUARY 2012 Sport 29 Cook emphatically silences his doubters SPORT | IN BRIEF Ireland discover Paris date RUGBY UNION: Six Nations chiefs England’s first international Pakistan dispelled the theory that all batsmen are judged and with Jos announced yesterday that Ireland will success of what has been a try- he’s a one dimensional player – it was Buttler cash rich in that respect, play France in their rescheduled match ing tour. very much a coming of age innings. England’s South-African born star in Paris on 4 March. The game was due When the Essex left-hander At a time when English morale was names appear to be on borrowed to be played last Saturday but was was handed the captaincy last as low as it has been for quite some time. called off shortly before kick-off by ref- year many pundits, includ- time Cook delivered something By contrast, one man whose name eree David Pearson, who deemed frozen ing my self, believed it was a very special in Abu Dhabi should be on the team sheet in indeli- sections of the Stade de France turf to shortsighted appointment which has brought him the ble ink is Steven Finn. The young be a danger to the players. CRICKET COMMENT that served only to compli- sort of breathing space paceman, superb in India last cate the riddle of bringing some of the other illustrious October, took four wickets and was a Synchronised handed top weight ANDY LLOYD balance to England’s bat- members of England’s top real threat. HORSE RACING: The Jonjo O’Neill ting order. order must be craving. It appears to me that he’s being trained Lexus Chase winner NY victory brings pleasure to a I doubted whether It’s difficult to com- deliberately held back from the Test Synchronised has been handed top captain, but when you play a Cook (right), a classi- prehend an England team due to concerns over his dura- weight of 11st 10lb for this year’s Grand leading role in determining cally stoic Test opener, side being stronger for bility. At just 22, however, he’s got National at Aintree. Last year’s winner Athe outcome of a match it’s would be able to thrive the absence of Kevin plenty of time to add that string to Ballabriggs has been asked to shoulder doubly satisfying. in the one-day game but Pietersen and, to a cer- his bow and once he has he’ll be a 11st 9lb ahead of the world’s most Alastair Cook will have discovered his 137, which came at tain extent, Jonathan Test regular for years to come. famous steeplechase on 14 April. as much on Monday following a mag- just shy of a run a ball, in the first Trott but runs are the Andy Lloyd is a former England Test crick- nificent innings which underpinned one-day international against currency by which eter who made 17,211 first-class career runs. Sweden next for Murray’s girls TENNIS: Great Britain’s Fed Cup squad will travel to Sweden for April’s World Group II play-off tie following yester- day’s draw. Captain Judy Murray led the team of Elena Baltacha, Anne Keothavong, Heather Watson and Laura Robson through Euro/Africa Zone Group Farrell and Co I two weeks ago. “Sweden’s top two players are similar in ranking to our top two players, so it should be an interest- ing match up,” said Murray. Dhoni heroics save India again are repaying CRICKET: Captain Mahendra Singh Dhoni was India’s hero again as they tied with Sri Lanka in the fifth match of the tri-series in Australia. Sri Lanka bat- ted first at the Adelaide Oval and made a competitive 236-9, built around Dinesh coach’s faith Chandimal’s 81, and India were always right on the rate. A nervy finish saw the balance shift one way then another before Dhoni (58 not out) and Umesh and he has shown that. It’s vital now Yadav scampered three off the final ball that England stick with him. I’ve said to leave the scores level. it before: he will make mistakes. The ability to keep faith with Owen and some of the others is going to be the trick and that’s probably the down- Results side should England decide to change managers again. L<=8:?8DG@FEJC<8>L< RUGBY UNION COMMENT Would I like to see Lancaster keep IFLE;F=(-=@IJKC<> the job? That’s not completely my 9Xp\iC\m\iblj\e '  ( 9XiZ\cfeX%%%%%%%%%%%%%%%%%%% (  * BRENDAN VENTER BX[c\Z,) JXeZ_\q+(#,, call, but he has been very impressive. 8kk1*'#''' D\jj`// He laid down the law on little things Farrell has been Cpfe%%%%%%%%%%%%%%%%%%%%%%% '  ( 8gf\cE`Zfj`X%%%%%%%%%%%% ' ' HAVE been very impressed with like the Danny Care incident, acting key to England’s CXZXq\kk\,/ 8kk1*,#''' Stuart Lancaster’s start as quickly and decisively – and players winning start to L<=8L<IFLE;F=*)$ England coach, which has led the want that. the Six Nations =@IJKC<> 9iX^X%%%%%%%%%%%%%%%%%%%%% '  ' 9\j`bkXj%%%%%%%%%%%%%%%%%%%%%% (  ) Iteam to two wins from two Farrell, Barritt and Botha – as well IlY`eBXqXe%%%%%%%%%% '  ' Fcpdg`XZfj%%%%%%%%%%%%%%% '  ( matches and featured some great per- as Charlie Hodgson – have been Picture: GETTY EGFNOwen Farrell has taken his assured tinued to be terrific. They’ve really Brendan Venter is Technical Director of N\jk?Xd%%%%%%%%%%%%%%% (  ( Jflk_Xdgke%%%%%%%%%%%%%% '  ( kicking onto the international stage SOMETHING DIFFERENT pulled their weight and when I regu- Saracens. They face Leicester Tigers on EGFNL<( 9flie\dflk_%%%%%%%% (  ( C\pkfeFi`\ek%%%%%%%%%%%%% (  ) with great success. Owen is a really Someone else I fancy to follow them larly fly over from South Africa to Sunday, kick-off 2:30pm. Under-14s go free. 9lip%%%%%%%%%%%%%%%%%%%%%%% '  ( :_\jk\i]`\c[%%%%%%%%%%%%%%% (  ( talented young rugby player, with is our young hooker Jamie George. visit I’m always really impressed with For tickets call 08448471876 or visit :Xic`jc\%%%%%%%%%%%%%%%%%% '  ' KiXed\i\%%%%%%%%%%%%%%%%%%% '  ' wonderful skills and temperament, He’s currently doing an apprentice- what they’re doing. We don’t see our www.saracens.com :_Xickfe%%%%%%%%%%%%%%%% )  ) D`ckfeB\pe\j;fej% '  ( :fcZ_\jk\i%%%%%%%%%%%%% '  ) 9i\ek]fi[%%%%%%%%%%%%%%%%%% '  ( ?l[[\ij]c[%%%%%%%%%%%% '  ' J_\]]Lk[%%%%%%%%%%%%%%%%%%%% (  ( Efkkj:flekp%%%%%%%% )  ) L<) 8c[\ij_fk%%%%%%%%%%%%%% '  ( ?\i\]fi[%%%%%%%%%%%%%%%%%%%% '  ' 9iX[]fi[%%%%%%%%%%%%%%%% '  ( GfikMXc\%%%%%%%%%%%%%%%%%%%%% (  ( :_\ck\e_Xd%%%%%%%%%%% '  ' KfihlXp%%%%%%%%%%%%%%%%%%%%%% (  ( at a cost of £28m armed with a repu- The Russian has been a regular visitor their concerns while Villas-Boas has :i\n\%%%%%%%%%%%%%%%%%%%%% (  * 9likfe8cY`fe%%%%%%%%%%% '  ) Chelsea’s malaise is tation as the next Jose Mourinho and to the club’s Cobham training had to contend with suggestions of Dfi\ZXdY\%%%%%%%%%%% '  ( DXZZc\j]`\c[%%%%%%%%%%%%% '  ' crucially, it seemed, with the remit to ground this month and spoke to both discontent among senior players and Efik_Xdgkfe%%%%%%%% '  ( 8=:N`dYc\[fe%%%%%%%% '  ' a gauge of owner’s Fo]fi[Lk[%%%%%%%%%%%% '  ) ;X^I\[%%%%%%%%%%%%%%%%%% '  ( mastermind a long-term project. manager and team on Sunday when media criticism of his sensitivity. Gcpdflk_%%%%%%%%%%%%%%% '  ' 9Xie\k%%%%%%%%%%%%%%%%%%%%%%%% '  ' Gone were the days of Abramovich they were called in for an extra train- It is hard to avoid the feeling mat- Ifk_\i_Xd%%%%%%%%%%%%% (  ( 8ZZi`e^kfeJkXec\p%% '  ' long-term policy, dispensing with managers even if ing session. ters are reaching a crossroads. J_i\njYlip%%%%%%%%%% '  ( 9i`jkfcIfm\ij%%%%%%%%%%% '  ' they finished in the top two; the It has got people wondering: is Victories over Birmingham on Jn`e[fe%%%%%%%%%%%%%%%%% (  * :iXnc\pKfne%%%%%%%%%%% '  ' says Frank Dalleres Blues’ billionaire owner was ready to Villas-Boas about to become the sev- Saturday and Napoli three days later :I@:BLC8IKFLIE8D POPULAR wisdom has it that Chelsea resoundingly his man. Abramovich took over in 2003? the sack temporarily. Anything else >XdY_`i0(#DJ;_fe`,/ef %@e[`X )gkj k`\[n`k_Ji` manager Andre Villas-Boas is facing A few months on and such ideal- Should Villas-Boas lose his next two and we will learn whether CXebX )gkj % his moment of truth, but the next ism looks endangered. Their Premier fixtures, Chelsea would be heading Abramovich really has developed a J<:FE;KN

Sanchez scored twice Picture: GETTY Barca and hero again Sanchez back Wenger backs Arsenal legend to bow out in the grand manner against AC Milan in the Champions in the groove League at the scene of one of his greatest displays ▲ FOOTBALL “He can do it again,” said Wenger CHAMPIONS LEAGUE holders AC MILAN of Henry. “He will be highly moti- Barcelona continued their vated because he started his inter- defence of Europe’s most presti- national career in Italy. gious club title with an ultimate- “We didn’t expect him to be so ly convincing 3-1 last 16 first leg ARSENAL important for us when he signed. victory away against German His talent on the pitch is still much side Bayer Leverkusen. ▲ FOOTBALL sharper than I expected after being Pep Guardiola’s side have fall- out in the States. en 10 points adrift of Real BY JAMES GOLDMAN “I expected him to have more Madrid in the race for the THE SAN Siro played host to one of health problems because at the end Spanish league title but they Thierry Henry’s finest performanc- of the day he left top, top European underpinned their status as es in an Arsenal shirt and his man- level football because he was a bit tournament favourites last night ager Arsene Wenger is confident concerned about his knee prob- following a high class second the former France striker can roll lems, but he’s in good shape.” half display. back the years tonight and propel Wenger is himself targeting a San Lionel Messi’s magnificent his side to Champions League glory Siro hat-trick of sorts this evening lofted pass with the outside of against AC Milan. having also masterminded a 2-0 suc- his left foot created the opening Henry will return to his parent cess over the current Serie A leaders for Alexis Sanchez slide Barca club New York Red Bulls after the at the same stage of the competi- ahead five minutes before the last 16 first leg tie following a fruit- tion four years ago. break, but Michal Kadlec ful loan spell which has seen him Only right-back Bacary Sagna is a equalised with a header from on contribute three goals, including survivor of that famous night in the loan Tottenham defender the decisive strikes against Leeds in club’s recent European history but Vedran Corluka’s cross shortly the FA Cup and at Sunderland in Wenger is confident his current after the re-start. last Saturday’s 2-1 win. and largely unheralded side can fol- Barca responded like champi- Wenger conceded the 34-year-old, low in some illustrious footsteps. ons and restored their advan- who scored twice for the Gunners “If I would think we have no tage two minutes later through at one of Italian football’s most chance to win the game I would Sanchez before Messi prodded iconic venues in a 5-1 romp against stay at home. I don't like to waste home the third late on following Inter back in 2003, had far exceeded my time,” the Arsenal manager unselfish work from Dani Alves. his expectations over the course of declared. Henry scored twice In the night’s other match the past six weeks, but admits it “We have shown we can win against Inter at the Alexandre Lacazette’s deflected would be foolish to rule out Henry everywhere and I have full confi- San Siro for Arsenal goal gave Lyon a 1-0 home win penning one glorious final chapter dence in this team that we can do in 2003 over APOEL Nicosia. in the story of his fairytale return. it. We will try to play our game.” Picture: GETTY

CHAMPIONS LEAGUE TIPPING Patel: We’re out for revenge real mouthwatering tie in the Premier League in recent weeks prospect here with two sides and look like they are going to seri- that have underachieved in ously struggle to qualify for next sea- with whitewash of our own Arecent years but are still two of son’s Champions League as things the biggest clubs in European foot- stand. ball. AC Milan cruised through the Winning this competition would group stages this time around and obviously solve that problem, but the really held their own in two games Gunners look a long way short of ▲ CRICKET England are back in action against beat them 4-0 in their own backyard. against the mighty Barcelona. being able to achieve that. It’s a real BY JAMES GOLDMAN Pakistan today looking to double their But that’s the aim.” Last season’s Serie A champions are toss up as to who will qualify for the lead in the four-match series but Patel described England’s first win once again doing the business on the quarter finals between these two STILL smarting from the whitewash Patel, who contributed some impor- of the year in an international fixture domestic front but Massimiliano teams, but I’d have to side with Milan Pakistan inflicted on them in the tant tail-end runs and took the wicket as a “statement” of their intent. Allegri’s side would do well to remem- at the San Siro. recent Test matches, England are of home skipper Misbah in Abu “I wouldn’t say it’s relief; it’s just ber it was another North London side Best Bet: determined to give Misbah-ul-Haq’s Dhabi, admits only a 4-0 win will rep- great to get back to winning ways,” he in the shape of Tottenham that put Home Win @ Evs with William Hill side a taste of their own medicine by resent “payback” for the damage said. “It’s been a tough period, but them out of this competition last sea- Today's VIP Tipster: sealing a 4-0 clean sweep in the cur- Pakistan inflicted on Andrew you’ve got to take the ups and downs son. Arsenal have been out of sorts in Jamie Currie @therealmabbs rent one-day series, according to all- Strauss’s Test side. really and move forward.” rounder Samit Patel. “We’re looking to absolutely nail Despite failures in the series opener After Pakistan’s spinners made a this series, to beat them 4-0, white- for Kevin Pietersen, Jonathan Trott FOR EXCLUSIVE FREE BETS, BONUSES AND A FULL TIPSTER OVERVIEW mockery of England’s world No1 Test wash them – obviously a bit of pay- and Eoin Morgan, who have struggled OF TONIGHT'S CHAMPIONS LEAGUE GAMES ranking earlier in the tour, Alastair back for the Test series,” said the with the bat throughout the tour, Cook’s side took a significant step 27-year-old. “The boys are geared up England are set to name an VISIT in association with: towards accelerating the healing for it; we know what it’s going to take. unchanged side with Jos Buttler still process on Monday with a compre- “It’s important to highlight the skill unavailable due to split webbing on THEVIPGAMBLER.COM hensive 130-run victory in the first of levels we need against their spinners. his left hand. four one-day internationals. It would be a great achievement to ANDY LLOYD ON ALASTAIR COOK: P29 “LANCASTER DESERVES 31 TO STAY IN THE TOP JOB” BRENDAN VENTER’S VERDICT ON ENGLAND’S INTERIM HEAD COACH : P29

Searing pace of Chamberlain and It’s business as usual for Walcott the key to beating Milan Rangers, say administrators ▲ FOOTBALL ensure that Saturday’s match at Ibrox ice for Robin van Persie I’ve got Tottenham at this stage last year BY FRANK DALLERES will proceed as planned and all other every faith in him to score and but, having been beaten at routine club business will continue.” the Gunners to get at least a home, outplayed Spurs at White ADMINISTRATORS insist Rangers’ fix- It had been feared that the weekend draw. Hart Lane. This Arsenal side, ture against Kilmarnock on Saturday fixture would have to be called off if Wenger could opt for Andrey meanwhile, have been com- will go ahead despite the club entering police were not paid. Arshavin over Oxlade- pared unfavourably to the side into administration yesterday. The move came after HM Revenue Chamberlain but I think he’ll that went to the San Siro and The Scottish champions and Customs yesterday lodged a favour the youngster, while he won 2-0 in 2008. became the biggest British court petition to put Rangers FOOTBALL COMMENT also faces a choice between expe- They are certainly a different club yet forced to take the into administration over rience and youth in midfield. team, with just one survivor, and step, which carries an £9m of unpaid PAYE tax TREVOR STEVEN Aaron Ramsey would get my lack some of the European expe- immediate 10-point penal- and VAT. vote because he has more run- rience that squad enjoyed. ty in the Scottish Premier A separate, larger claim RSENAL will need big ning in him than Tomas Rosicky, But they look to be growing in League. from HMRC, relating to games from Theo Walcott with the option of bringing the confidence and I was impressed Paul Clark, of London- employee benefit trusts, is and Alex Oxlade- tidy Czech playmaker on if they by their European away wins at based administrators Duff the subject of an ongoing AChamberlain tonight if are struggling to retain posses- Udinese and Marseille earlier and Phelps, said the move tribunal but is thought to they are to return from Milan sion. this season. would “address the terrible be unrelated to yesterday’s with a good result. A win would be sensational uncertainty that has been hang- move. I expect space in midfield to SENSATIONAL but even a draw would be a great ing over the club”. Scottish Football Association chief be tight so it’s imperative that This is a tough tie to call. Milan result, as we know how danger- He added: “All aspects of the adminis- executive Stewart Regan expressed his Arsene Wenger’s men exploit are top of the Italian league, so ous Italian teams are when they tration will be carried out with the “deep regret” at the club’s “parlous the searing pace they have on will be full of confidence, and have a lead to protect. interests of the club firmly in mind. As state” and said he intended to meet the wings. will have the benefit of an intim- Trevor Steven is a former Everton and a first step, the administration team will administrators urgently. If Walcott and Oxlade- idating home support on their Glasgow Rangers winger who repre- Chamberlain can penetrate side. sented England at the 1986 and 1990 Milan and provide regular serv- They were knocked out by World Cups.

KNOW YOUR ENEMY: AC MILAN

CURRENT FORM League opposition. Last season it was from the third division for a shot at the big AC Milan sit top of Serie A, having Tottenham, the year before Manchester time – and delivered immediately, winning returned to the summit at the weekend United and in 2007-08 it was Arsenal. Serie A in his first season at AC Milan last with a 2-1 win at Udinese. Since the end of term, the club’s first for seven years. the Champions League group stage they REMEMBER WHEN Ironically, previous side Cagliari have looked strong, winning eight and The Gunners’ 2-0 win at sacked him just weeks before drawing two in 13 games, although they the San Siro in March he started at Milan. have lost two and won just one from their 2008 was AC Milan’s last four. They qualified from Group H first home defeat to an DANGER MEN behind holders Barcelona, whom they English side in their his- Zlatan Ibrahimovic may drew with in Spain and narrowly lost to in tory. Arsenal’s victory divide opinion in this a five-goal thriller in Italy. was earned by a Cesc country but he remains Fabregas long-range drive Milan’s spearhead, and the PEDIGREE and Emmanuel Adebayor’s temperamental Swede has 17 Seven-time European champions they may injury-time strike. The visitors’ goals in his last 19 games, includ- be, but the Rossoneri have struggled in starting line-up contained just one player ing four in four in Europe, to back up that continental competition of late – and likely to start tonight: Bacary Sagna. status. Robinho provides support but has thanks to English clubs. Their last three managed just four goals all season, while Champions League campaigns have ended THE BOSS youngster Stephan El Shaarawy has burst at the last 16 and each time to Premier Massimiliano Allegri worked his way up onto the scene with two in two.

Man City stars Hammers miss chance welcome back to open four-point gap returning Tevez WEST HAM Morgan Schneiderlin, he sent off ▲ 1 West Ham’s Matt Taylor for shov- FOOTBALL ing Billy Sharp in the resulting SOUTHAMPTON fracas. MANCHESTER CITY striker Carlos 1 Noble dusted himself down to Tevez returned to the club’s training score his seventh goal from seven ▲ ground yesterday after he decided to FOOTBALL penalties this season, but end his four-month self-imposed Hooiveld equalised for the visi- exile. WEST HAM manager Sam tors in the second half to secure The Argentina star has effectively Allardyce blamed referee Lee a share of the spoils. been on strike since manager Roberto Probert for his side’s failure to “In our point of view the major Mancini accused him of refusing to move four points clear of decisions have gone the wrong come off the bench against Bayern Southampton at the top of the way,” said Allardyce. “I don’t Munich back in September. Championship. want the officials taking away Tevez will return for training today Probert turned down two what we are striving for and I but will not travel with the first team strong penalty claims for hand- thought the officials tried to do to Portugal for City’s Europa League ball against Rickie Lambert and that today, which was a shame. tie with FC Porto tomorrow. Jos Hooiveld in the opening 15 “We also should have had two City defender Joleon Lescott said on minutes. other penalties. I’ve looked at Twitter : “All the players are excited to And when the official did them four times, and the second have Carlos, Kolo [Toure] and Yaya finally point to the spot, after one is a sending-off as well as a [Toure] back to help achieve our goal.” Mark Noble was tripped by penalty.” Capital thinking #9

Always have a stop in mind when taking a position.

Trading is about discipline. If we want to achieve most things in life, we need to have a plan. Trading the fi nancial markets is no different.

Go to capitalspreads.com/freereport and download a copy of our free report today and learn how successful traders stay profitable and reduce risk.

Spread betting and CFDs carry a high level of risk to your capital and you can lose more than your initial deposit. These trading products may not be suitable for all investors so seek independent advice if necessary.

Capital Spreads is a trading name of London Capital Group, which is authorised and regulated by the Financial Services Authority and a member of the London Stock Exchange. Registered Address: 2nd fl oor, 6 Devonshire Square, London, EC2M 4AB. Registered Number: 3218125.