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FTSE 100 5,875.93 -14.33 DOW 12,883.95 +5.75 NASDAQ 2,915.86 +11.78 /$ 1.58 -0.01 / 1.19 -0.01 /$ 1.32 unc
Greek talks
postponed
once more
GREEK talks were adjourned yet
again late last night, with no
agreement reached between sen-
ior government officials over an
urgently needed new bailout.
Pension reforms are believed to
still be a stumbling block, with
George Karatzaferis leader of the
nationalist LAOS party particu-
larly opposed to the measures.
Karatzaferis was the first to
leave the meeting that spilled on
until after midnight, having
begun later than scheduled yester-
day evening. This morning he will
rejoin Prime Minister Lucas
Papademos and other heads of
the coalition parties in a bid to
finally patch together a proposal.
Even if a plan is agreed this
morning, the wider Greek cabinet
will then have to give its approval,
and a vote is still scheduled for
parliament.MORE ON GREECE: P4
BY JULIAN HARRIS
EUROZONE

STEPHEN Hester, chief executive of

RBS, yesterday admitted he was strug-
gling to run the bank as a fully com-
mercial enterprise due to political
pressure, a situation that has caused
outcry among some of RBSs biggest
private shareholders.
City A.M. asked Hester whether he
felt able to run RBS as a fully commer-
cial proposition, a condition he insist-
ed upon before taking the job and also
a legal obligation for UKFI, the state
agency that manages the taxpayers
83 per cent shareholding in RBS.
Hester, who spent the day in inter-
views, said: We are trying to operate
as a commercial company while
understanding the sensitivities of the
environment we operate inwe are
trying to, it does involve some compro-
mise to our goals and trying to steer
the best route.
He also suggested the political envi-
ronment could hit the banks recov-
ery: Provided that we have the time
and space to recover and to operate as
a commercial company and thats a
provided in RBS theres a strong
company waiting to get out and pro-
ducing good results before the cost of
clean-up. But he warned: For the gov-
ernment to get its 45bn back,
investors need... to think RBS is a suc-
cessful, commercial company, safe,
making good profits and managed on
a commercial basis.
Richard Buxton of Schroders, whose
funds own 1.6 per cent of the bank,
told City A.M. yesterday that he has
BY JULIET SAMUEL
BANKING

B
B
C
/
T
W
I
T
T
E
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www.cityam.com Issue 1,567 Thursday 9 February 2012 FREE
raised his concerns about political
interference with UKFI. In the last
couple of months, the hands-off UKFI
stance that water has been mud-
died, he said. We did have a conver-
sation with UKFI expressing our
concerns about the extent to which
UKFIs position has been compro-
mised. And its clearly a sad fact Im
sure [Hester] would agree that we
would wish that muddying of the
waters wasnt repeated.
A spokesman for the Treasury
rejected the idea and said UKFI was
being run at arms length.
But Buxton said: We [Schroders]
are reasonably unusual in still having
a substantial stake. There are large
numbers of investors who dont own
it precisely because theyre terrified
by state interference and it not being
managed for commercial ends.
Certified Distribution
28/11/11 till 01/01/12 is 92,879
BUSINESS WITH PERSONALITY
City A.M. also understands that at
least five other major RBS sharehold-
ers have raised the same concerns
with UKFI. They are particularly
angered by the bonus row. One
investor said: No commercial institu-
tion can be run with this kind of pub-
lic scrutiny. Theres a reason why civil
servants dont get paid that much. If
youre under that kind of scrutiny you
cant have any economics.
It is understood UKFI is trying to
defuse the bonus row, potentially by
pegging awards explicitly to some
kind of small firm (SME) lending or
share price target.
But there are concerns this could
distort management priorities and
run afoul of FSA pay guidelines.
Hester yesterday said that although
RBS has a 25-30 per cent share of SME
banking, it accounts for 40-50 per cent
of lending. This could fuel fears stan-
dards are being lowered under pres-
sure.
Hester also warned that this kind
of spotlight makes it harder to keep
and attract people and to motivate
them...it will be harder now... As you
get to more senior levels people get
more worried about personal expo-
sure to controversies and theyre
scarcer animals.
He said that he had considered quit-
ting but concluded it would be indul-
gent. My own decision-making
varies from moment to moment but
whenever I receive approaches [for
other jobs] I give the same answer,
that I want to win with RBS.
CITY VIEWS: P17
INVESTORSHITBACK
OVER RBS MEDDLING
HARRY ACQUITTED
CLEARED REDKNAPP
WANTED BY FAP30-31
Stephen Hester yesterday finally broke his silence on the bonus row
CAPELLO QUITS
ENGLAND BOSS GOES
AFTER TERRY ROW P30
News
2 CITYA.M. 9 FEBRUARY 2012
Vacancies fall
by half in City
JOB OPPORTUNITIES in financial serv-
ices evaporated over the last year as
economic worries took their toll,
according to the Morgan McKinley
London employment index.
Vacancies fell from 5,935 in January
2011 to 1,733 in December, before ris-
ing back to 2,835 on the traditional
January hiring spree a 52 per cent
fall, year on year.
The New Year brought an 18 per
cent jump in the number of jobseek-
ers, and part-time vacancies increased.
We are definitely seeing the impact
of economic uncertainty reflected in
rising levels of hiring activity for tem-
porary and contract roles in financial
services, said Morgan McKinleys
Andrew Evans.
It is encouraging to see short term
roles being released which suggests a
need for skilled professionals, however
it also points to a real wait and see
approach to hiring permanent
employees.
The study also reported the length
of time taken to fill each vacancy rose
to 91 days, a 30-day jump from
December and 26 days longer than in
January 2011.
Meanwhile a survey from Ipsos Mori
showed half of Britons are willing to
move to another city for a better pay-
ing job, but only 26 per cent are pre-
pared to move abroad. CAREERS: P23
BY TIM WALLACE
UK ECONOMY

BROKERS SUSPENDED IN LIBOR INQUIRY

More than a dozen traders and brokers
in London and Asia have been fired,
suspended or put on leave by their
employers as a multinational probe
into alleged manipulation of crucial
global lending rates accelerates.
Regulators have been investigating US
and European banks that help set
interbank lending rates in London and
Tokyo since late 2010.
HOUSE OF LORDS VOTES AGAINST NHS
BILL
David Cameron defended his contro-
versial health reforms yesterday, but
was immediately given a bloody nose
by peers who voted against the govern-
ments health bill on their first chance
since it returned to the upper cham-
ber. Peers voted by a majority of only
four to back an amendment giving
mental health equal importance to
physical ailments within the NHS,
which the government had opposed.
S AFRICA LOOKS AT WAYS TO USE
MINERAL WEALTH
South Africa could raise R40bn
(3.3bn) a year, at current commodity
prices, through new taxes on the min-
ing industry that could be used to
establish a sovereign wealth fund,
according to a report commissioned
by South Africas ruling African
National Congress.
DEUTSCHE BANK ASSET MANAGEMENT
AUCTION FALTERS
The auction process to sell Deutsche
Bank Asset Management is faltering
after JPMorgan and State Street with-
drew from the bidding, making it
more likely the bank will have to break
up the business as part of a prolonged
sale of the assets. Deutsche Bank had
raced ahead with the sale process in
the past week, narrowing interest
from a wide range of potential bidders
to a shortlist of a half a dozen, before
the leading contenders withdrew.
FOUR SEASONS REACTS TO ITS DEBT
DEADLINE
Britains largest care homes group
may have to raise more than 200m of
fresh equity to help to ease its debts.
Four Seasons said yesterday that
shareholders may be asked to support
a new equity-raising as one of a num-
ber of options it is considering to help
to repay or refinance 780m of debt
due in September.
PM STUDIES GOLDEN SKIRTS QUOTAS
The failure of Britains biggest compa-
nies to appoint more women to top
jobs is harming Britains economy,
David Cameron will say today. The
Prime Minister is visiting Stockholm
to get ideas on how to increase the
proportion of women directors in the
UK. He will examine plans for gender
quotas in the boardroom and may
admit a lack of progress in boosting
the proportion of senior female execs.
PLUS MARKETS SHAREHOLDER IS
DISAPPOINTED BY SALE
One of the largest investors in Plus
Markets Group has said it is sad-
dened and disappointed by the com-
panys decision to put itself up for
sale. Amara Dhari Investments,
which controls more than 18 per
cent of the exchanges shares, said
the decision was regrettable given
the fact that Pluss share price had
fallen by more than 50 per cent over
the past year.
SANTANDER CRACKS DOWN ON
INTEREST ONLY MORTGAGES
Santander has become the first
major high street bank to insist that
home owners need a 50pc deposit
or 50pc equity in their home if they
want an interest-only mortgage. This
move not only affects those buying a
property, but will also hit existing
borrowers who are moving home.
BANKS NEAR $25 BILLION PACT ON
FORECLOSURE PROBE
Government officials are on the verge
of an agreement worth as much as
$25bn with five major banks, capping
a yearlong push to settle federal and
state probes of alleged foreclosure
abuses by lenders. The deal would rep-
resent the largest government-indus-
try settlement since a multistate deal
with the tobacco industry in 1998.
FX ALLIANCE IPO PRICES AT $12 EACH,
BELOW EXPECTED RANGE
FX Alliances initial public offering of
5.2m shares priced yesterday at $12
each, below its expected range of
$13.50 to $15.50 apiece. The company
filed plans in September for an IPO of
as much as $100m in stock. FX Alliance
wont receive proceeds from the sale of
shares by its stockholders, which
include Technology Crossover
Ventures and other funds.
WHAT THE OTHER PAPERS SAY THIS MORNING
Why free money has very real costs
LOW interest rates are great, high
interest rates are bad that, at least,
seems to be the general message from
politicians and the media, who almost
invariably welcome easy money and
decry rate hikes. The problem is that
the public doesnt agree not a bit, in
fact. The latest YouGov research on the
matter reveals that just 23 per cent of
the public agree that low interest
rates are good for my personal
finances, while 36 per cent believe
that they are bad and 31 per cent dont
think it makes a difference either way.
If you are stuck in the Westminster
or media bubbles, or are a mainstream
economist, and are conditioned to
believe that everybody loves easy
money, these are truly shocking and
counter-intuitive results; in the real
world, of course, they make sense.
Savers, pension funds and those trying
to purchase annuities are being ham-
mered by rock bottom interest rates
(and price signals are being hugely dis-
torted); the great winners are those
who have a lot of debt with interest
rates linked to base rates.
Capitalism cant work properly with
state-imposed negative real interest
rates. The only age group which sup-
ports low rates and 36 per cent to 21
per cent is hardly an emphatic
endorsement are 25-39 year olds,
who have lots of debt and big mort-
gages. Tory voters especially hate low
interest rates. The public also dislike
inflation far more than the political
classes usually understand.
The Bank of England will do what it
believes is right when it meets today,
regardless of public opinion. But the
reason I am highlighting these fasci-
nating surveys is that monetary policy
is much more complex and far more
political than even the politicians
themselves realise. They like low rates
because they hope they will boost
growth and jobs, and forget that
manipulating the price of credit can
be extremely dangerous, but there is
even more to it than that.
Take quantitative easing (QE): in
todays Britain the distinction between
fiscal policy (the Treasurys job) and
monetary policy (the Banks) has bro-
ken down. Under the guise of counter-
acting the negative impact on the
money supply of new banking regula-
tions, the Bank of England is helping
the Treasury finance spending to an
astonishing degree. In October 2011,
the Bank bought 16.9bn worth of
gilts, compared with 17bn raised by
the authorities the entirety of the
budget deficit that month was mone-
tised. It was even more extreme in
November 2011: the Bank bought
23.9bn of gilts while the Debt
Management Office (DMO) issued
only a net 11.9bn. In December, the
Bank bought 15.3bn against an
issuance of 13.4bn. In 2012 (up to 2
February) it has bought 23.9bn worth
of gilts, against issuance of 16.1bn.
Concentrated bouts of QE have bene-
fits as well as costs, of course but
among the latter must be included
reduced discipline at a Treasury that
no longer needs to worry as much
about levying taxes to fund spending.
Monetary policy has a huge effect
on growth, jobs and inflation. It also
has immense distributional effects
helping borrowers and hurting savers
and huge political effects. There is no
doubt the UK would have lost its AAA-
rating in the absence of mass gilt-buy-
ing via QE. If the Bank decides to go for
more QE today, it will mean Sir Mervyn
King has agreed to do George
Osbornes job for another few months.
The chancellor will be delighted, of
course, but thats not really the point.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
DEUTSCHE Bank will defer any part of
an employees bonus above 200,000
this year, a source close to the bank
said, making it the latest industry
player to limit pay in the face of fierce
criticism of the industry.
Any staff with a bonus at or below
the maximum would see half of it in
cash, and half of it in equity shares
that they can sell in August.
Anything above that is paid in
deferred compensation, the source
said. The deferred portion will also be
half cash and half shares, and will be
paid out over a period of three years in
equal annual installments, beginning
in 2013.
The bonus restrictions, designed to
affect the 2011 awards being paid out
now, are most likely to hit Deutsches
investment bank.
Deutsche is still one of the best pay-
ers in the industry, with average pay
for investment bankers at 332,785 in
2011, down 12 per cent on 2010 levels.
BY HARRY BANKS
BANKING

Deutsche defers bonuses

Outgoing chief Josef Ackermann has overseen an overhaul in DBs bonus payouts
NEWS | IN BRIEF
Ernst & Young fined $2m in US
The US watchdog board for corporate
auditors yesterday said it has imposed a
$2m penalty, its largest fine ever, on
accounting and consulting firm Ernst &
Young LLP in a settlement involving past
audits of Medicis Pharmaceutical Corp.
The Public Company Accounting
Oversight Board said it also sanctioned
four current and former Ernst & Young
partners for violating rules in the audits
of Medicis, which sells prescription
drugs for asthma and skin conditions.
Ernst & Young settled without admit-
ting or denying the PCAOB's findings.
Diamond Foods to ditch top staff
Diamond Foods, the US-listed maker of
Kettle crisps and Emerald nuts, is replac-
ing its chief executive and chief financial
officer and will restate its earnings for
the last two years following an account-
ing probe. The investigation into pay-
ments to farmers has thrown into doubt
the company's deal to buy the Pringles
snack business from Procter & Gamble.
The firms shares tumbled 40 per cent
last night. Diamond is still being probed
by the Securities and Exchange
Commission over the accounting.
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editors
Code of Practice, a copy of which can be found at
www.pcc.org.uk
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Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Acting Night Editor Marion Dakers
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Gavin Billenness
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
52%
The amount
by which
vacancies
fell in the
last year
BARCLAYS Capitals last-minute inclu-
sion in the adviser list for the
Glencore-Xstrata merger, which has
lifted its place in the Thomson
Reuters league table for M&A world-
wide, has been challenged by one of
its rivals.
Thomson Reuters, which has lifted
BarCap from eighth to sixth follow-
ing the banks declaration that it is
an adviser on the 56bn merger, said
yesterday that a rival had com-
plained.
The challenge focuses on the role
of BarCap and whether they should
be credited as an adviser on the deal,
said Leon Saunders Calvert, Thomson
Reuters head of global deals and pri-
vate equity.
Calvert said the bank now needed
to provide proof of the advisory work
it was providing on the bid. They
need to provide an engagement letter
and we want to see details of what
they advised on. If they provide suffi-
cient proof which is consistent with
the details we expect, they will retain
their credit. Otherwise their accredi-
tation will be removed from the
transaction.
News of BarCaps inclusion as an
adviser to the deal took bankers by
surprise when they heard about it.
One of the 18 named bankers work-
ing on the deal over the past few
weeks said: Weve not seen hide nor
hair of BarCap over the past few
weeks.
The extent to which one major
transaction can influence the rank-
ings, and the suddenness of BarCaps
arrival on the scene, has prompted
some to criticise the way the tables
are put together.
One of the complaints is that some
widely followed tables rank the num-
ber and value of deals, and one banks
advisory work is given the same
weight as anothers, regardless of the
amount of work.
In the case of Xstrata and Glencore,
for example, banks such as Citi and
Morgan Stanley, JP Morgan, Nomura
and Deutsche may have been working
on the deal for weeks and yet will get
the same weighting in the league
table as BarCap, which came in at the
last minute.
Thats pretty tough for an adviser
who has just endured several sleep-
less nights, said one banker.
Yesterday advisers on the deal were
talking to shareholders.
BarCaps role
in 56bn deal
is challenged
ONLINE discount website Groupon
posted a $42.7m (27m) net loss for its
fourth quarter despite almost
tripling revenue to $506.5m in its
first ever earnings report as a public
company.
However, the loss attributable to
shareholders, which Groupon put
down to particularly high tax rates in
certain countries, decreased 89 per
cent on last year.
The daily deals website reported its
first quarterly operating income in
the black since expanding overseas in
mid-2010, reaching $15m compared
to an operating loss of over $336m in
the same period last year.
Full year revenues increased a stag-
gering 419 per cent to $1.6bn, in line
with analysts expectations, while
losses from operations more than
halved to $203.4m.
The company said it now has 33m
users, up 20 per cent on last quarter.
Groupon hit the market in
November for $20 a share, but was
disappointed when its stock which
initially jumped to $28 fell to
under $15 within weeks.
Shares have since returned to
above their IPO price, but plummeted
almost 15 per cent in after-hours trad-
ing yesterday to $21.
An unforgetabe
VALENTINES DAY
PANDORA.NET
PANDORA
ONE NEW CHANGE, 23 CHEAPSIDE PASSAGE
EC2V 9AF LONDON, 020 72482615
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OFFICIAL STORE LAUNCH EVENT
THURSDAY 9
TH
FEBRUARY
Groupon grabs more revenue
but fails to post its first profit
Chief executive Andrew Mason led Groupon to tripled quarterly revenue Picture: GETTY
BY LAUREN DAVIDSON
TECHNOLOGY

News
3 CITYA.M. 9 FEBRUARY 2012
2012 WORLDWIDE ANNOUNCED ADVISER RANKINGS
Adviser Rank value (US$m) Rank Mkt Share% No of deals
Citi 73,136.4 1 35.6 15
JP Morgan 72,678.7 2 35.3 25
Goldman Sachs 67,537.0 3 32.8 17
Deutsche Bank 64,534.3 4 31.4 15
Morgan Stanley 64,061.8 5 31.2 33
Barclays Capital 60,985.2 6 29.7 15
Nomura 54,556.8 7 26.5 12
B of A Merrill Lynch 18,674.7 8 9.1 14
Credit Suisse 14,064.2 9 6.8 13
Moelis 8,341.4 10 4.1 14
INCLUDING GLENCORE/XSTRATA
(+2)*
(+9)*
SOURCE: THOMSON REUTERS
*Number in brackets represents the places each bank has climbed after Xstrata deal
BY DAVID HELLIER
EXCLUSIVE

SHARES in British mobile payments

business Bango rocketed yesterday as
the company did a deal with Facebook,
despite both parties refusing to dis-
close the terms of the agreement.
Bango said in a statement it will
provide payments services to
Facebook. This follows last weeks
confirmation after a rise in share
price around the time of Facebooks
IPO filing that the Cambridge-based
company was in the final stages of dis-
cussions with a leading platform.
While 85 per cent of its revenues
come from advertising, Facebook does
not currently display adverts on its
mobile platform.
This deal reflects Facebooks move
to capitalise on its mobile market,
which currently accounts for half of
the websites monthly active users, in
the run-up to its long awaited IPO.
Bango has been considered a mar-
ket leader in carrier billing, which
allows consumers to put payments for
purchases via mobile on their network
bill, since its 2005 deal with AT&T.
However, Bango also offers analytics
for mobile websites and could also be
working with Facebook in this area.
A similar level of secrecy surround-
ed the deal Bango signed with
Amazon in December which has been
linked to the retail giants app store for
Android, featured on the Kindle Fire.
The AIM-listed company also pro-
vides mobile payments services to
RIMs App World on BlackBerry.
Bingo shares jumped 40 per cent to
close at 137.5p.
Facebook deal
sends Bango
stock sky high
NETWORK equipment maker Cisco
Systems last night promised further
revenue growth after its second quar-
ter results beat estimates thanks to a
restructuring, leading to a dividend
increase.
The company, a sector bellwether
because of its global scale and diverse
client base, forecast five to seven per
cent growth in fiscal third quarter rev-
enue.
That translates into a sales outlook
of $11.4bn to $11.6bn (7.2bn to
7.3bn), matching or slightly exceed-
ing Wall Streets average forecasts.
Executives also forecast gross mar-
gins of 61.5 to 62 per cent in the fiscal
third quarter ending April.
Broadly speaking, people expected
a good quarter. This is probably a little
better than expected and the dividend
is an added surprise, said Mizuho
Securities analyst Joanna Makris.
Revenue rose 10.6 per cent from the
year-ago quarter to $11.5bn. Analysts
on average were expecting $11.23bn.
Net income grew to $2.2bn, or 40
cents per share, from $1.5bn, or 27
cents share, a year earlier.
Credit card giant Visa posted a
first quarter profit of $1bn, up 13 per
cent, as revenues grew 14 per cent to
$2.5bn.
BY LAUREN DAVIDSON
TECHNOLOGY

News
4 CITYA.M. 9 FEBRUARY 2012
BY HARRY BANKS
TECHNOLOGY

Cisco trumps estimates

and increases guidance
ANALYSIS l Bango
p
2Feb 3Feb 6Feb 7Feb 8Feb
160
130
140
150
120
110
100
137.50
8 Feb
Greek bailout held up by politicians refusal
to accept plans to cut the cost of pensions
GREEK Prime Minister Lucas
Papademos said last night that one
final area of disagreement requires
further elaboration and discussion
with the troika, as talks over a new
bailout package dragged on.
The troika the European Union,
European Central Bank and
International Monetary Fund
requires Greece to implement reforms
and austerity measures to ensure its
debts become sustainable beyond the
next tranche of aid.
Many reforms are thought to have
been accepted by senior members of
the coalition parties, including a sig-
nificant reduction in the youth mini-
mum wage, and the selling off of
more state-owned assets.
There was broad agreement on all
the programme issues with the excep-
tion of one, Papademos said in the
early hours of this morning. The
exception is believed to be cuts to pen-
sions. Negotiations to overcome the
hurdle will take place immediately
[today], Papademos promised.
Lenovo results
beat forecasts
LENOVO Group, the worlds second-
biggest PC maker, this morning post-
ed a 54 per cent rise in third-quarter
net profit, beating expectations.
But growth at Hong Kong-listed
Lenovo slowed for a third straight
quarter on weak global PC demand
and a shortage of components.
The firm, which last year edged out
Dell to rank behind market leader
Hewlett Packard in PC sales, reported
a net profit of $153.46m (97.1m) for
the three months ended December,
up from $99.65m a year earlier.
The company has been diversifying
into smartphones and tablet PCs with
its LePhone and LePad devices.
BY JULIAN HARRIS
EUROZONE

BY HARRY BANKS
TECHNOLOGY

CI T Y HA L L , T HE QUE E N S WA L K , L ONDON, S E 1 2 A A X WWW. L ONDON. GOV. UK

Dear captains of industry,
As Mayor of London, Im determined to find ways to help
get business moving again and propel our great citys
economy forward.
With the Olympic and Paralympic Games, 2012 is set to be an
extraordinary year, but not without its challenges for our young
people. Talented individuals are our citys future, so Im asking
you to look for opportunities where you could take on a
dynamic apprentice.

Together we have already created over 50,000 apprenticeships
in London, but that is only the beginning. They boost productivity,
theyre good for your company and they increase loyalty as well.
Whats more, the Government could provide up to 100% funding
for the training of your apprentice.

I believe apprenticeships are absolutely vital, not just for
Londoners but for the bottom line of the companies concerned.
My office and the National Apprenticeship Service are ready to
help so get in touch. Contact apprenticeships@london.gov.uk
or visit www.london.gov.uk/apprenticeships

Yours,

Boris Johnson
Mayor of London
BRITISH Airways and Japan Airlines
have agreed a revenue-sharing deal
for flights between Europe and
Japan, potentially giving their
oneworld alliance more competi-
tive muscle.
The joint venture would lead to
more choice of flights and could
lead to more routes, BAs parent
International Airlines Group (IAG)
said yesterday.
Despite the difficulties the
Japanese aviation market has faced
in recent years, we have great confi-
dence in JALs business outlook and
the overall markets future
prospects, IAG chief executive
Willie Walsh said.
Walsh has previously indicated
that IAG, formed between BA and
Spanish airline Iberia, was keen to
pursue a joint venture with JAL,
praising the carriers recovery from
last years devastating earthquake
and tsunami.
The Japanese airline, which
forms part of the oneworld alliance
with BA and American Airlines,
emerged from bankruptcy last
March and is planning to relist this
year.
The group plans to raise more
than 500bn (4.1bn) ahead of re-
listing its shares as early as
September.
JAL has submitted an application
to the Japanese government seek-
ing antitrust immunity and IAG
was in contact with the European
Union, IAG said.
BA and Japan
Airlines agree
revenue share
GENERAL Motors is preparing for a
clash with unions following reports
that the carmaker is planning to shut
down manufacturing plants in the
UK and Germany.
The firm is set to report a quarterly
loss of more than $300m (189m) at
its troubled Opel unit next week.
The division branded as Vauxhall
in the UK is in the middle of a 100-
day restructuring plan designed to
slash costs.
General Motors
considers UK
factory closure
News Corp, led by Rupert Murdoch, generated $8.98bn in the quarter Picture: GETTY
BY HARRY BANKS
AVIATION

MANUFACTURING

News
6 CITYA.M. 9 FEBRUARY 2012
ANALYSIS l International Airlines Group
p
2Feb 3Feb 6Feb 7Feb 8Feb
188
190
192
186
184
182
183.00
8 Feb
News Corp results rocket
despite hacking expenses
NEWS Corp forked out $104m
(65.8m) in the second half of 2012
due to phone-hacking investigations,
of which 15 per cent was paid out to
victims with the remainder related to
lawyer and adviser fees.
The Murdoch-controlled company
grew revenues two per cent to $8.98bn
in the second fiscal quarter, with prof-
its up 65 per cent to $1.06bn.
News Corps film unit, which
includes 20th Century Fox produc-
tions, more than doubled its profits to
$393m, largely spurred by Oscar-nom-
inated movie The Descendants.
The media conglomerates cable
network grew 20 per cent in the quar-
ter to $882m, but profits from its pub-
lishing unit dropped 43 per cent to
$218m due to lower advertising sales
and ongoing repercussions of the July
closure of The News of the World.
News Corp subsidiary News Group
Newspapers settled claims from a fur-
ther 19 phone-hacking victims yester-
day, dishing out 40,000 to Steve
Coogan, 45,000 to Simon Hughes MP
and 68,000 to Paul Gascoigne.
MEDIA

THE US Treasury Department yester-

day enlisted five EU nations to help
crack down on offshore tax evasion
by Americans and ease the burdens
the effort has imposed on many
banks and financial institutions.
The new law, entitled FACTA, gives
banks in the UK, France, Germany,
Italy and Spain simpler data disclo-
sure agreements starting in 2013, in
exchange for information on US tax
avoiders.
US makes a tax
deal with banks
POLITICS

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correct at time of going to press 11/01/2012. AER (Annual Equivalent Rate) illustrates what the interest rate would be if interest was paid and
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Get City news, info and offers at
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ADVERT8EMENT
City art gallery
celebrates The
Age of Elegance
aintings from Guildhall Art
Gallery's permanent
collection celebrate the
transition of art from fin de sicle
to the jazz age in a new
exhibition, The Age of Elegance:
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Admission FREE.
City Lord Mayor David Wootton welcomes HM The Queen and
HRH The Duke of Edinburgh to the Guildhall on 14 February for
a gala performance of Mr Dickens and The Actors, in aid of the
Royal Theatrical Fund. The cast includes Sir Derek Jacobi,
Samantha Spiro, Matthew Kelly and Eddie Redmayne.
City of London residents aged 14 - 19 years (or up to 25 years for
those with additional needs) are invited to attend the City of
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views about the City's services for young people.
The event, which will be held in the Livery Hall on 16 February
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Free refreshments and activities will be provided and there will
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Call Sharon Cohen on 020 7332 1192 for more details.
Royal gala performance held at Guildhall
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City of London needs young residents' views
TIME Warner rounded off a better-
than-expected year on the back of its
growing cable networks and the lucra-
tive final Harry Potter film.
The New York-based media and
entertainment company reported
fourth quarter profits of $772m
(488m), up slightly on last years
$766m, from a five per cent rise in
quarterly revenue to $8.2bn.
This contributed to a full year rev-
enue of $28.9bn up an annual eight
per cent in Time Warners highest
growth rate since 2003 and pro-
duced $2.9bn in profits.
However, the company ended the
year with 24 per cent increased net
debt of $16bn, due to share repurchas-
es and investment spending.
The eighth installment of the Harry
Potter series boosted full-year revenues
for Time Warners filmed entertain-
ment division nine per cent to $12.6bn.
The most successful franchise in
film history will keep the money pour-
ing in due to continuing DVD sales
and Orlandos Wizarding World
theme park, soon to launch in LA.
Hotly-awaiting films hitting screens
in 2012, such as The Hobbit and The
Dark Knight Rises, are expected to give
Time Warner another bumper year.
However, Time Warners largest
chunk of revenue in 2011 came from
its cable networks, which grew nine
per cent to $13.7bn.
Subscription fees at its networks,
including HBO, rose five per cent to
$3.5bn, while cable advertising rose
two per cent, driven by non-US mar-
kets.
The firm also announced a new
$4bn stock repurchase authorisation
by its board.
Chief executive Jeff Bewkes said the
company would invest aggressively
and expand internationally this year.
Shares rose three per cent to $39.24
before closing flat at $38.11.
Harry Potter conjures up
profits for Time Warner
Time Warner rolled in revenues of $28.9bn
in 2011, spurred by the latest Harry Potter
BY LAUREN DAVIDSON
ENTERTAINMENT

News
7 CITYA.M. 9 FEBRUARY 2012
CANACCORD Financial said yesterday
its third-quarter profit plunged 94 per
cent on a weak market and one-time
charges, but the core result topped
analysts estimates, prompting
investors to push the Canadian bro-
kerages shares higher.
Canaccord, which agreed to buy
London stockbroker Collins Stewart
in December, said it earned C$2.5m
(1.59m) in the final quarter of 2011.
Revenue in the quarter dropped 42
per cent annualised to C$147.9m, as
slumping market activity hurt invest-
ment banking and trading activity. The
figure was a 24 per cent improvement
on the previous quarter, however.
Advisory revenue from subsidiary
Canaccord Genuity rose 53 per cent to
C$38.5m, however, due to robust
cross-border merger activity, the com-
pany said.
The firm booked costs of C$2.7m
related to its purchase of Collins
Stewart, which it expects to be
finalised on 22 March.
Canaccord says
weak markets
dented earnings
BROKING

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News
8 CITYA.M. 9 FEBRUARY 2012
London nets
football cash
capital title
MANCHESTER clubs might currently
be bullying their southern rivals in
the Premier League, but London has
been pronounced the undisputed
football finance capital of the world.
London boasts three teams
Arsenal, Chelsea and Tottenham
among Europes richest 11 clubs, with
two more West Ham and Fulham
inside the top 40, according to
research published today by Deloitte.
The figures, based on last season,
place the Gunners fifth, the Blues
sixth and Spurs 11th in the continent-
wide survey based on annual revenue.
The Hammers were 29th and Fulham
just outside the top 30.
Deloittes Dan Jones, who edited
the Football Money League, told City
A.M.: You cant argue with it: theres
no other city with more than two
clubs in the list. Thats a product of
London being the biggest city in the
country with the biggest league in
the world.
Spanish superpowers Real Madrid
(433m) and Barcelona (407m) con-
tinue to enjoy the strongest revenues,
with Manchester United (331.4m)
third and Bavarian giants Bayern
Munich (290.3m) fourth.
Arsenal (226.8m) and Chelsea
(225.6m) remain closely matched in
a top six whose positions stayed static
for a fourth consecutive year.
Tottenhams run to the Champions
League quarter-finals boosted rev-
enue to 163.5m, leaving them well
placed to return to the top 10 and fur-
ther strengthen Londons position.
Overall the top 20s income contin-
ued to grow, albeit it a slower rate,
down from eight per cent to three per
cent. That growth outstripped that of
their countries economies, however,
which rose by an average of 1.7 per
cent in 2010 and 1.3 per cent in 2011.
BY FRANK DALLERES
SPORT BUSINESS

EURO FOOTBALL MONEY LEAGUE 2012

POS TEAM REV POS TEAM REV
REVENUE KEY
Commercial
Broadcast
Matchday
500m
419m
400m
335.5m
Real Madrid
479.5m(433m)
FC Barcelona
450.7m(407m)
Manchester
United
367m
(331.4m)
300m
251.5m
200m
167.7m
100m
83.8m
m
m
Bayern
Munich
321.4m
(290.3m)
ARSENAL
251.1m
(226.8m)
S
O
U
R
C
E
:

D
E
L
O
I
T
T
E
CHELSEA
249.8m
(225.6m)
AC Milan
235.1m
(212.3m)
Inter Milan
211.4m(190.9m)
Liverpool
203.3m
(183.6m)
Schalke 04
202.4m
(182.8m)
Londons biggest
clubs still trail
Spains big two
01 Real Madrid 479.5m
02 FC Barcelona 450.7m
03 Man United 367m
04 Bayern Munich 321.4m
05 ARSENAL 251.1m
06 CHELSEA 249.8m
07 AC Milan 235.1m
08 Internazionale 211.4m
09 Liverpool 203.3m
10 Schalke 04 202.4m
11 TOTTENHAM 181m
12 Manchester City 169.6m
13 Juventus 153.9m
14 Marseille 150.4m
15 AS Roma 143.5m
16 Borussia Dortmund 138.5m
17 Lyonnais 132.8m
18 Hamburger SV 128.8m
19 Valencia 116.8m
20 Napoli 114.9m
Superdroop: hot
fashion label hit
by slowing sales
News
10
SHARES in Dunelm rose almost four
per cent yesterday, after the British
homewares retailer said it grew like-
for-like sales in the first half and gained
market share despite a tough economic
environment.
The Leicester-based company report-
ed a 1.1 per cent rise in like-for-like
sales during the six months to 31
December compared with a 1.2 per
cent decline the previous year.
Pre-tax profits leapt by 7.8 per cent to
52.2m on revenues up 8.8 per cent to
299.9m, boosted by the opening of 10
new stores in the period.
Chief executive Nick Wharton said:
Dunelm has achieved robust trading
results in a very demanding retail envi-
ronment, and has continued to gain
market share on a like for like basis.
The group now operates 123 stores,
selling kitchenware, bedding and rugs,
114 of which are out-of-town super-
stores. Wharton said it was on track to
deliver it ambitious target of opening
150 to 200 stores.
The retailer, which floated in 2006,
also announced the appointment of
outgoing chief executive of Pets at
Home Matt Davies as an independent
non-executive director.
BY KASMIRA JEFFORD
RETAIL

Robust sales help

Dunelm beat gloom
News
11 CITYA.M. 9 FEBRUARY 2012
Supergroup shocks
with profit warning
SUPERGROUP, the owner of fashion
label Superdry, surprised the City
yesterday after it warned that a
slowdown in sales meant full-year
profits would be at the bottom end
of expectations.
The retailer said that after a solid
Christmas trading period, with like-
for-like sales up 9.3 per cent in
December, there has been a slow-
down in the last three weeks of
January.
Supergroup added it had seen
variable performance over the
quarter, hit largely by aggressive
discounting among other high
street shops.
It said it now expects profit
before tax for the full-year to be
towards the lower end of the range
of market expectations.
This suggests profits will come in
below consensus forecasts of
52.6m. Analysts had been expect-
ing profits of between 50m and
54.1m after the group issued a pre-
vious profit warning in October.
The news sent shares tumbling
more the 17 per cent, closing at
579.5p last night. Supergroup was
one of 2010s most successful stock
market flotations.
Listing at 500p, the shares rocket-
ed to a high of 1,899p in February
last year before suffering a reversal
of fortune last summer, when it
reported problems with its ware-
housing system.
The high street brand which
boasts celebrity customers includ-
ing David Beckham opened four
new stores in the quarter, and now
has 76 shops and 74 concessions.
During the thirteen weeks to 29
January, retail sales increased by
27.8 per cent to 78.5m compared
with the same period last year, with
like-for-like sales increasing 4.4 per
cent.
BY KASMIRA JEFFORD
RETAIL

TROUBLED retailer Mothercare pinned

its hopes of a domestic turnaround on
the internet yesterday when it appoint-
ed the head of Lovefilm International
as its new chief executive.
Simon Calver will join the mother
and baby chain in April. He replaces
Ben Gordon, who quit in October after
a profit warning.
Calver (pictured), whose current
employer was sold to Amazon a year
ago, will be charged with rebuilding
Mothercare after its UK arm was hit by
competition from supermarkets and
online retailers and the high street
downturn. The group made a first-
half loss but the overseas arm,
which contributes just under 50
per cent of profits, is booming.
Alan Parker, who had been
running Mothercare on an inter-
im basis, resumes the role of
non-executive chairman.
He said Calvers e-com-
merce and brand
expertise will enable
Mothercare to acceler-
ate its development as a multi-channel
retailer in the UK.
Analyst Andrew Wade at Numis
said: This looks to be a strong
appointment, bringing consider-
able new skills and experience to
the business, predominantly
focusing around brand develop-
ment, online execution and inter-
national progression.
Shares in Mothercare,
which have more than
halved over the past
year, bounced 7.69 per
cent to 217p.
BY PETER EDWARDS
RETAIL
ANALYST VIEWS: HAS THE PROFIT WARNING
AFFECTED YOUR OUTLOOK? By Kasmira Jefford

JOHN STEVENSON | PEEL HUNT

Retail sales were in line with forecasts and little changed from the
Christmas interim management statement, with wholesale on track for second
half expectations. Given the relative unimportance of January trading and weak
fourth quarter comparatives ahead, we were therefore surprised management
took the opportunity to cut profit-before-tax guidance to the bottom of the 50m-
54.5m range.

WAYNE BROWN | COLLINS STEWART

The trading update is disappointing across all areas...We reduce our
profit-before-tax forecast from 51m to 49m. Supergroup remains committed to
opening 20 UK stores and 50 international stores per annum. With any high
growth business, execution risk is high and whilst the business should have
resolved its distribution issues, it is now suffering from an unprecedented level of
discounting across the UK high street.

FREDDIE GEORGE | SEYMOUR PIERCE

Following this update, we are reducing our full year 2012 pre-tax profit
forecasts from 54m to 52m, which puts our forecast broadly in line with con-
sensus, taking earnings per share down from 50.9p to 49.2p to reflect a more con-
servative view of wholesaling revenues. As a consequence, we expect total sales
to be lower than our forecast by around 10m to 327m. We, however, still expect
a robust fourth quarter against relatively easy comparatives.

ADMINISTRATOR KPMG has received

four second-round bids to buy the
collapsed retailer Peacocks or parts
of it out of administration, it is
understood.
Edinburgh Woollen Mills is
thought to be one of the bidders still
in the running, while Pakistani tex-
tiles tycoon Alshair Fiyaz also
emerged as a surprise bidder this
weekend.
KPMG, however, is not expected to
reach a decision on a preferred bid-
der until early next week, according
to reports yesterday.
Four bidders in
the battle to
save Peacocks
RETAIL

AMAZON has joined forces with

Viacom to bring a range of TV shows
to its customers, marking the latest
advancement in the internet giants
online streaming battle with Netflix.
Amazon Prime members will be
able to stream thousands of episodes
from the American media conglomer-
ate including MTVs Jersey Shore,
Comedy Centrals Chappelles Show,
and Nickelodeons SpongeBob
SquarePants on over 300 devices.
The deal will bring the total num-
ber of Prime instant videos to over
15,000.
Amazon library
of TV grows on
Viacom venture
TECHNOLOGY

Mothercare aims for

re-birth with Calver
FIVE years after it was launched with
an estimated 20m branding exercise,
13 giant poster sites around Britain
and a television ad campaign voiced by
Uma Thurman, Virgin Media has
swung into the black for the first time.
The cable operator posted net
income of 75.9m, its first annual prof-
it since it was launched in 2007 as a
merger between Virgin Mobile and
NTL: Telewest.
It also beat fourth quarter expecta-
tions as customers snapped up the
combination of its new TV service and
fast broadband offerings, part of its
strategy to counter the economic
slump by selling more products to
existing customers.
Neil Berkett, chief executive, said:
Our strategy of focusing on cus-
tomers who want more from the digi-
tal world is paying off.
The number of people taking Virgin
Medias new TiVo TV service, which
offers on-demand programming,
more than doubled in the fourth quar-
ter with 273,000 net additions. It had
435,000 TiVo customers at the end of
the year, 12 per cent of the overall tele-
vision base. During the quarter
133,000 new and existing customers
moved to its superfast broadband.
The firm, listed mainly in New York
but also traded in London, said it will
create 620 customer service jobs.
Revenue rose two per cent for the
quarter to 1bn and the full-year fig-
ure was up three per cent to 4bn.
Operational cash flow rose five per
cent for the quarter and 5.3 per cent
over the year.
Virgin Media
posts its first
annual profit
BRITISH newspaper group Daily
Mail & General Trust (DMGT) said
yesterday that overall revenue for
the quarter rose two per cent at
495m, boosted by reinforcement
in its digital areas.
Although the company said its
trading was broadly in line with
expectations, it also said a decline
in advertising revenues at its
national titles accelerated to nine
per cent, pushing its shares down by
nearly four per cent yesterday.
Analysts attributed the share
price drop to the stocks recent
strong run, while noting the weak-
ness in January advertising.
The economic outlook is very
hard to read, DMGT chief executive
Martin Morgan said on a conference
call yesterday.
Morgan also said the company
would continue to invest in its digi-
tal businesses while cutting costs
elsewhere, which was proven by the
newspaper cutting down its staff by
two per cent, but hiring more peo-
ple for the fast-growing MailOnline.
The MailOnline revenues for the
quarter were up 70 per cent higher
than last year, but the website is not
expected to be profitable this year.
Shares in DMGT closed down 3.91
per cent yesterday at 444.3p.
DMGT revenue
up despite ad
spend decline
1 billion
viewings of TV
on Demand
Out of the red: how
Branson brands stopped
the losses in 2011
435,000
TiVo customers
Launched mid-year
3.8m
TV customers
sales
bn
4.8m
cable
customers
Sir Richard Branson
and Dita von Teese at
the launch of Virgin
Media in 2007
BY PETER EDWARDS
MEDIA

MEDIA

News
13 CITYA.M. 9 FEBRUARY 2012
ANALYSIS l Virgin Media
p
2Feb 3Feb 6Feb 7Feb 8Feb
1,620
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1,580
1,600
1,520
1,500
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BNY MELLON
ANNOUNCES
BOAT RACE
MERGER
CHANGE IS afoot for one of the UKs most
traditional sporting fixtures, after Bank
of New York Mellon yesterday stepped in
to sponsor The Boat Race.
For the first time from 2015, the
womens event, whose sponsorship by BNY
Mellon company Newton Investment
Management remains unchanged, will
leave Henley to take place on the same
stretch of London river as the mens race
a move that is good for gender equality,
says chairman Gerald L Hassell.
BNY Mellon will not disclose a figure
for its five-year deal from 1 May. But the
banks backing steers the regatta into
calmer waters, after the chief executive
of incumbent sponsor Xchanging,
which bows out after this years Boat
Race on 7 April, quit shortly before the
2011 event, sending the share price
crashing by almost 50 per cent.
Present at the Somerset House launch
desks were clapping along in unison.
Somebody bring this wonderful RBS tra-
dition to the UK and fast. The Capitalist
can think of at least one top-level executive
at the bailed out bank, due to turn 52 on
14 December, who could do with some
cheering up
BREWERS DROOP
THERE WAS a 10p rise in the SABMiller
share price yesterday, no doubt linked to
the announcement that professor
Katherine Smart will take over as
group chief brewer on 1 June.
Smart is clearly well-qualified
she is a scientific adviser to several
global corporates and has edited a
number of books on brewing yeast
but does she know what she has let her-
self in for?
SABMiller has some potent brews in its
stable, after all Smart will be required
to finesse the flavours of Perus very ses-
sionable national ale Cristal; the
Chairmans Extra Strong Beer that is
hugely popular in the Democratic
Republic of Congo; and the premium
strength Amsterdam Maximator, last
seen being exported by the truckload to
the discerning drinkers of Kazakhstan.
The sherry-like Maximator has a
fiery taste, notes SABMiller and a
blazing 11.6 per cent alcohol content
to match.
Left: The 2011 Oxford
Cambridge Boat Race
Picture: GETTY
Right: SABMillers new
group chief brewer
Katherine Smart
The Capitalist
14 CITYA.M. 9 FEBRUARY 2012
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
were Newton CEO Helena Morrissey, BNY
Mellons vice chairman Curtis Arledge
and EMEA chairman Michael Cole-
Fontayn, and Robert Gillespie, the direc-
tor general of the Takeover Panel and
chairman of The Boat Race Company, who
declared: In BNY Mellon we have a spon-
sor who values the heritage of the race.
So possibly not the best time for one
source to remind Cole-Fontayn that the
late Paul Mellon, a scion of the banks
founders, was a renowned horse-racing
enthusiast, but he did anyway. Well,
the Boat Race is a one-off, like the
Derby, came Cole-Fontayns reply.
RBS PLAYS CHICKEN
NO DANGER of birthday blues for traders
at the RBS HQ in Stamford, Connecticut
the bank lays on a dance by a man dressed
in a dirty yellow chicken suit.
The ungrateful could describe the birth-
day bonus as chicken feed but reports
of the sightings, the most recent of which
was last Friday, suggest real value.
I wish you had been here to witness the
person in a chicken suit leading half the
trading floor in the chicken dance, sup-
plies a mole from US blog Dealbreaker. I
only caught the tail end (pun intended),
but a good chunk of the surrounding
THOMAS COOK said yesterday it has
managed to hold onto market share
with winter and summer bookings
broadly stable, despite reporting
widening losses as it struggles to rein
in its financial woes.
The holiday firm, which was res-
cued by its banks after a cash crisis
late last year, said underlying operat-
ing losses had more than doubled to
91m compared with the same quar-
ter last year, as it continued to be
impacted by political unrest in the
Middle East and economic uncertain-
ty in Europe.
But interim chief executive Sam
Weihagen said the company was
fighting back and called the one per
cent rise in summer bookings partic-
ularly encouraging, against an
industry decline of 14 per cent.
Thomas Cook has also put its
Indian business up for sale as part of
its attempt to pay down its 890m
debt-pile. It holds a 77.1 per cent stake
in the Bombay-listed business, which
has a market cap of around $225m.
At its annual meeting yesterday, a
smaller investor spoke out against the
1.17m pay-off awarded to former
boss Manny Fontenla-Novoa last year,
but overall only nine per cent voted
against the remuneration report.
Thomas Cook puts India
arm on sale as losses rise
Interim chief exec Sam Weihagen said losses had doubled compared to last year
BY KASMIRA JEFFORD
LEISURE

News
15 CITYA.M. 9 FEBRUARY 2012
Tristan Lovegrove, director at Credit
Suisses investment banking division, has
been a longstanding adviser to Thomas
Cook, first acting for the travel operator
when it merged with MyTravel in 2007.
Lovegrove also worked alongside
James Leigh-Pemberton on Rio Tintos
$15bn rights issue in 2009 the fifth
biggest on record at the time. The deal
marked a bonanza for the bank, which
was reportedly paid a 2.75 per cent fee.
Last year, he advised John Wood group
on the $2.8bn sale of its wells support
division to General Electric.
MEET THE ADVISERS
TRISTAN
LOVEGROVE
DIRECTOR
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It was useful to learn about your variety of products and how accessible they are.
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I came because I wanted to see the star whose columns I enjoy (and wasnt disappointed)
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EASYJETS war of words with major
shareholder Sir Stelios Haji-Ioannou
shows no signs of a cease-fire as the
no-frills airline approaches its share-
holder meeting later this month.
The carrier yesterday welcomed sup-
port from the Association of British
Insurers and investor group ISS for its
executive pay package.
Advice from these influential
groups gives easyJet a better chance of
passing resolutions at the firms AGM
on 23 February.
But Stelios yesterday claimed a
moral victory after ISS lent its sup-
port to altering easyJets way of calcu-
lating bonuses, which he has long
slammed as a gravy train.
EasyJet said yesterday it would take
independent advice on its methods.
The support from ISS and the ABI
comes as a boost for easyJet manage-
ment in a week when another proxy
adviser, Glass Lewis, said it would rec-
ommend voting against the remuner-
ation report.
Stelios said in a statement yester-
day: Investors cannot simply rely on a
vague promise by anonymous direc-
tors. Until the changes are in effect, I
am urging other well-meaning share-
holders to vote against the remunera-
tion report or withhold their vote as a
protest.
BY MARION DAKERS
TRANSPORT

News
16
SALES SOAR ACROSS RALPH LAUREN BRANDS
DESIGNER Ralph Lauren reported better-than-expected results for the holiday quarter yester-
day, helped by double-digit sales growth at its own stores as well as increased sales to
department stores. Ralph Lauren, with brands ranging from mid-tier basics to high-end lux-
ury labels such as Polo, Club Monaco and Chaps, said revenue rose 17.2 per cent in its fiscal
third quarter to 31 December, to $1.81bn (1.14bn). Picture: GETTY
EasyJet wins
bonus support
BRITISH consumer goods group
Reckitt Benckiser is to launch a major
sales push into fast-growing emerging
markets, with a focus on health and
hygiene brands like Nurofen and
Dettol, to offset sluggish European
and North American markets.
New chief executive Rakesh Kapoor,
who took over last September after
Bart Bechts shock decision to retire,
said yesterday the group would raise
marketing spend as it aims to get half
of its core sales from emerging mar-
kets by 2016.
As part of this new strategy, the
group is reorganising its reporting to
include two clusters of emerging mar-
kets, while it will merge its European
and North American regions which
will save costs and lead to unspecified
job losses.
We should be investing more in
these markets as this is where there is
the opportunity for growth. We are
shaping our business for tomorrow,
he said, after the company beat fore-
casts with an eight per cent rise in
fourth-quarter earnings.
Reckitt, which also makes Cillit
Bang cleaners and Air Wick air fresh-
eners, reported fourth-quarter earn-
ings rising to 74.2p a share compared
with a company-compiled forecast of
71.3p.
For 2011, Reckitt reported a 13 per
cent rise in net revenue and an 11 per
cent rise in net income, just above its
target for 12 and 10 per cent rises.
Reckitt looks
for growth in
new regions
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CONSUMER

Rakesh Kapoor said Reckitt will raise its marketing spend

News
17 CITYA.M. 9 FEBRUARY 2012
ANALYSIS l Reckitt Benckiser
p
2Feb 3Feb 6Feb 7Feb 8Feb
3,525
3,425
3,450
3,475
3,500
3,400
3,479.00
8 Feb
Emerging markets push comes too late
WHEN times get tough, branded
products are the first things to go.
British consumers know there is lit-
tle difference between Fairy and a
supermarkets own-label washing
up liquid.
The trend is more pronounced
among younger consumers, who
will protect luxuries such as their
iPhone and designer clothes by buy-
ing staples from the supermarket
economy ranges. Thats bad news for
fast-moving consumer goods (FMCG)
companies such as Reckitt Benckiser
and Unilever.
Hence the search for growth in
emerging markets, where the name
of a product still matters. The mid-
dle classes in places like Brazil and
India like to differentiate themselves
by buying aspirational brands; if the
product has some link to the old
world, even better. India counts
Proctor & Gambles Head &
Shoulders as its favourite shampoo
and Surf and Ariel among its most-
loved detergents. It is the second
largest market for GlaxoSmith-
Klines bedtime drink Horlicks.
Reckitts decision to overhaul its
international structure is a tacit
admission that it has failed to capi-
talise on fast growing developing
markets, which accounted for less
than a quarter (24 per cent) of its
revenues in 2011. Conversely, fel-
low FMCG giant Unilever generated
54 per cent of its sales in emerging
markets last year.
The emerging markets push is
undoubtedly the right strategy,
although it has come far too late.
Not only does Reckitt have to com-
pete with other Western FMCGs, but
domestic rivals are also growing in
stature. It has a lot of catching up to
do. david.crow@cityam.com
BOTTOMLINE
Analysis by David Crow
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In association with RateSetter: A better way to Save and Borrow, Peer to Peer
BOB EATON | NEWHAM BOROUGH
Absolutely none. He isnt the only one who took risks that didnt work
out but he should definitely take some blame. They have crippled
the public sector.
JOHN CLINCH | HAYES ASSOCIATES LTD
I have no sympathy for Hester; he is partially responsible for some
failures at the bank. He never should have been offered the 1m
bonus in the first place.
JOHN ISLEY | ICS CONSULTING
I do have some sympathy for him he seems to be the focus of
peoples anger and to some degree a scapegoat. Overall though he
was right not to accept the bonus.
* These views are those of the individuals below and not necessarily those of their company
CITY VIEWS: DO YOU HAVE ANY SYMPATHY WITH
RBS BOSS STEPHEN HESTER? Interviews by Phoebe Torrance
CONSTRUCTION activity stagnated in
the final quarter of 2011, the Royal
Institute for Chartered Surveyors
(RICS) revealed yesterday, with firms
expressing doubts that the govern-
ments plans to boost private invest-
ment in infrastructure will work.
The construction market survey
showed a net balance of seven per cent
of firms facing falling workloads, com-
pared with one per cent previously.
For public housing and works the
picture is even gloomier a net bal-
ance of 22 per cent reported falling
workloads, from 17 per cent recorded
in the third quarter.
In his Autumn Statement chancel-
lor George Osborne pledged to
increase investment in infrastructure,
in part by harnessing private funds
including a proposed 20bn from pen-
sion funds.
However, only 14 per cent of survey-
ors expect the government to be suc-
cessful in fulfilling the pledge and
generating sufficient finding for
planned infrastructure projects.
A spokesman from the National
Association of Pension Funds, which is
involved in negotiations, said such
concerns are unfounded.
We are in on-going talks with the
Treasury and the Pension Protection
Fund to develop a new platform to
encourage investment in infrastruc-
ture, he told City A.M.
Pension funds are looking for infla-
tion-linked, long-term investments
and infrastructure projects could be a
good fit.
FORMER Bank of England deputy gov-
ernor Rachel Lomax hit out at quanti-
tative easing (QE) and the Vickers
banking reforms yesterday, calling the
asset purchase programme a stealth
tax on savers.
Speaking at Fathom Consultings
monetary policy forum, Lomax was
joined by another ex-policy maker
Andrew Sentance, who warned per-
sistently above-target inflation risked
destroying the MPCs reputation.
He also urged the government to
boost economic growth by cutting red
tape and reforming taxes and the
labour market.
Lomax said QE punishes savers by
pushing down interest rates in a way
that is convenient for politicians
but opaque and undemocratic.
She also argued that cleaning up
banks balance sheets is a major step
which would take the UK economy
back toward prosperity. She said
banks are weighed down by impaired
debts whatever Vince Cable, George
Osborne or Adam Posen say [about
other barriers to lending].
The Vickers report and proposed
reforms will impose costs on banks
that did not fail, and not sort out
those that did, she said a critique
the Treasury rejected, claiming
instead that the governments plans
give the UK a more stable banking
system that removes the implicit tax-
payer subsidy and avoid harming
the ability of UK banks to lend, invest
and compete.
Meanwhile Sentance pointed to
raised inflation expectations identi-
fied by Bank of England surveys, argu-
ing that the Banks credibility risks
being undermined by consistent fail-
ure to keep inflation on target credi-
bility which could be hard to
re-establish if it has been eroded.
Insurer Saga joined the assault on
QE, saying it does dreadful damage
to the incomes of anyone coming up
to 65 years old and buying an annuity.
Former Bank official blasts QE as an
undemocratic and unfair tax on savers
Building firms
stall on public
work worries
BY TIM WALLACE
UK ECONOMY

BY TIM WALLACE
UK ECONOMY

News
18 CITYA.M. 9 FEBRUARY 2012
FACT CHECKER | WITH JAMES WATERSON
HAS BORIS JOHNSON CUT 1,700 LONDON POLICEMEN?
BORIS Johnson has admitted cut-
ting 1,700 police officers. If I am
elected, I will reverse his cuts,
pledges Labours mayoral candidate
Ken Livingstone.
Crime is a key issue for swing vot-
ers and Kens team hope to portray
Boris as weak on policing. But how
would Ken fund the extra police? And
where does the figure come from?
The source turns out to be Boris
himself. In a typically bumbling
interview on LBC radio the mayor
was asked to confirm that police
staffing levels had dropped by 1,700.
Johnson responded: Yes, but as
Ive said to you many times now we
will have more police on the beat at
the end of this four year term than
there were at the beginning.
Kens campaign took this as confir-
mation that 1,700 police officers had
been cut. This doesnt add up.
According to figures from the
Metropolitan Police Authority there
were 31,398 police officers in London
at the end of March 2008, just before
Boris took control.
The latest figures from
December 2011 show there are
31,427 officers in the capital, an
increase of 29 policemen during the
course of Boris mayoralty.
The confusion results from fluctu-
ations during the mayors term in
office. Police numbers peaked at
32,543 in March 2009 before drop-
ping back.
Even so, how would Ken presume
to fund an additional 1,700 officers?
His answer involves charging
Transport for London an additional
20m for policing services a chal-
lenge, given his pledge to cut fares.
THE VERDICT | NO
CONFUSED MAYOR TO BLAME
The number of officers in the Met
Police has fluctuated around the
32,000 mark for the last four years.
Kens plan to fund increased police
staffing levels from TfL contributions
looks fanciful.
ALLISTER HEATH | CITY A.M.
Hold rates and QE the economy has shown some signs of beginning to recover and manipulating aggregate
demand further won't work. However it is important to watch the money supply, which slowed sharply last quarter.
SIMON WARD | HENDERSON
Stop QE. The economy is lifting and inflation is unlikely to return to target this year. Address any monetary
weakness by easing pressure on banks to deleverage rather than forcing more cash into overvalued gilts.
GEORGE BUCKLEY | DEUTSCHE BANK
I vote to hold rates and boost QE by 50bn. Business surveys have been stronger of late but with output still
well below its pre-recession peak, the risks to inflation going forward remain to the downside.
TREVOR WILLIAMS | LLOYDS
We should hold rates the economy is struggling as the sharp fall in M4 shows. QE should be extended by
75bn and we should be prepared to do more in the event of more serious fallout from the Eurozone crisis.
VICKY REDWOOD | CAPITAL ECONOMICS
It is time to increase QE again. Despite the stronger tone of the economic data of late, I think that another
75bn is required the most the Committee thinks is possible without distorting the markets.
GRAEME LEACH | IOD
Again we need to vote for more quantitative easing the only question is 50bn or 75bn. My hunch is that
with the money supply so weak, we should vote for 75bn.
HOLGER SCHMIEDING | BERENBERG BANK
I vote for 50bn more QE over six months, with a review after three months. Leading indicators have started to
recover, but the economy remains fragile and sluggish demand points to slower inflation, warranting more QE.
VICKY PRYCE | FTI CONSULTING
Hold rates and consider more QE. Despite some recent signs from domestic survey data, there is a sense we may
near crunch point on the euro, so the monetary stance needs to stay accommodating to sustain confidence.
ROSS WALKER | RBS
50bn more QE. Although there has been some improvement, the risks for the economy remain skewed to the
downside. Further loosening is safest. A stronger-than-expected recovery would be a nice problem to have."
CITY A.M. | SHADOW MPC SPLIT ON QE VOTE
ANALYSIS l Change in public non-housing/infrastructure workloads
%
Public non-housing
Infastructure
2000 2002 2004 2006 2008 2010
40
30
20
-10
-20
10
0
-30
-40
-50
German exports slump
as French services slow
GERMAN exports fell at their fastest
pace for three years in December,
data from the German Federal
Statistics Office showed yesterday
after foreign sales hit a record high
in 2011.
French industrial confidence stag-
nated in January, according to the
Bank of France, and Spanish indus-
trial output contracted for the
fourth consecutive month.
German exports fell at a seasonal-
ly adjusted 4.3 per cent, well above
economists forecasts and denting
GDP figures which initial estimates
suggested contracted slightly in the
quarter.
Imports also declined, falling 3.9
per cent. The trade surplus overall
narrowed from 14.9bn (12.5bn) in
November to 13.9bn.
Meanwhile French services slowed
to an index reading of 93, its 10th
consecutive decline, to its lowest
level since March 2011.
The overall index hovered at 96,
up from 95 in December and indi-
cating GDP was flat in the final
quarter of 2011.
Spains recession deepened fur-
ther with a 3.7 per cent fall in facto-
ry output. However, the pace of
decline slowed from Novembers
seven per cent drop.
EUROZONE

Ken and Boris are going to war over key issues such as policing Picture: GETTY
New from City A.M., we bring you the latest
K
>


h s
THE BEST ROLES NEED
THE BEST CANDIDATES.
W W W . C I T Y A M C A R E E R S . C O M
F I NA NC E B A NK I NG L E GA L I T
SHARES in power generation com-
pany International Power slumped
almost three per cent yesterday,
despite reporting a higher full-year
profit helped by continued
strength in its international mar-
kets.
The company also said yesterday
contributions from new plants that
became operational late last year,
together with new capacity expect-
ed to come on line during 2012,
would drive growth this year.
However, it warned that its target
of delivering core earnings of 1bn
(834m) from projects under con-
struction in 2013 could prove chal-
lenging without a recovery in
prices for hydro generation in
Brazil.
For 2011 the company, 70 per cent
owned by French utility GDF Suez,
said adjusted current operating
income rose nine per cent to 3.1bn.
Underlying earnings per share
rose 11 per cent to 27.6 cents, ahead
of consensus estimates of 27.2
cents, according to a company sup-
plied poll of 14 analysts.
Operating income in Latin
America rose 18 per cent to 1.3bn,
while in North America it rose 45
per cent to 575m, helping offset
weakness in Europe and Britain.
The group has recently opened a
new hydro-electric power plant in
Estreito, Brazil, as well as new proj-
ects in Chile and Panama.
A new plant opening in Turkey
also provided a boost to Middle East
operations, where income grew
seven per cent.
International Power was bought
by GDF Suez to create the worlds
largest independent power produc-
er. The deal, announced in 2010,
was completed last February.
Shares in International Power
closed at 333p yesterday, valuing
the business at about 17.5bn.
STRUGGLING Finnish phone maker
Nokia plans to cut 4,000 more jobs at
its plants in Finland, Hungary and
Mexico as it seeks to cut costs by mov-
ing phone assembly work to Asia.
The cuts of eight per cent of the
workforce bring total planned job
cuts at the group since Stephen Elop
took over as chief executive in
September 2010 to more than 30,000.
Nokia said in a statement the job
cuts would take place in phases
through this year. It has been review-
ing the operations since unveiling
the closure of its Romania plant last
September.
Nokias recent business results
have underscored the need for dras-
tic cuts. Late last month it reported a
73 per cent fall in quarterly earnings
as sales of new Windows Phones
failed to dent the dominance of
Apples iPhone or compensate for div-
ing sales of its own old smartphones.
Its fourth quarter smartphone
sales shrank 31 per cent from a year
ago and the business made a steep
loss for the quarter.
Nokia said it would cut 2,300 jobs
in Hungary, where it is a major
exporter, some 1,000 in Finland and
700 in Mexico.
Its Finnish factory in Salo, which
was the cornerstone for its success in
1990s, has been the last remaining
major phone assembly plant in the
Western Europe for some time. Most
rivals have moved their production
to Asia.
Nokia slashes 4,000 jobs as it shifts
all assembly lines to Asia to cut costs
SCANDINAVIAN airline SAS has
reported a fourth consecutive annual
loss in 2011 and said it would acceler-
ate a 5bn Swedish crown (473.3m)
plan to cut costs and boost revenue.
The group, half-owned by Sweden,
Norway and Denmark, has faced com-
petitive pressure in its home Nordic
markets from Norwegian Air Shuttle
and Ryanair. A buoyant Norwegian
recently placed a big aircraft order.
SAS chief executive Rickard
Gustafson said the macro-economic
outlook for the airline business
remained tough.
We foresee a continued weak eco-
nomic development in Europe and
that what we are seeing in the fourth
quarter of 2011 will be what we can
expect for 2012, he said yesterday.
Gustafson said the airlines latest
restructuring plan, called
4Excellence, which aims to reduce
unit costs by three to five per cent,
would be accelerated this year and
next.
SAS braces for annual loss
amid tough competition
AVIATION

FRENCH drugmaker Sanofi said yester-

day that its earnings could drop by up
to 15 per cent this year as top-selling
drugs previously protected by patents
are hit by competition from generics.
Sanofi expects to return to growth
in subsequent years, driven by emerg-
ing markets, diabetes, vaccines, its
takeover of biotechnology company
Genzyme and new products.
The chapter on blockbusters closes,
but we are in good shape coming out
of the patent cliff this year, chief
executive Chris Viehbacher said.
The Paris-based company reported a
13 per cent increase in fourth-quarter
profits and fine-tuned the expected
earnings dip in 2012 as blood-thinner
Plavix, the worlds second-best selling
medicine, and blood pressure drug
Avapro shortly face competition from
generic copies in the US.
Fourth-quarter business net income
rose to 2.08bn (1.74bn), in line with
analysts average forecast of 2.07bn.
Sales rose 8.8 per cent to 8.51bn.
Sanofi admits that sales
could drop as patents end
PHARMA

BRITISH home insurance firm

HomeServe said a prolonged market-
ing delay prompted by concerns it
may be mis-selling products would
hit customer numbers and renewal
revenues harder than expected.
The group said yesterday total cus-
tomer numbers could fall eight per
cent in 2012, worse than its previous
estimate of a five per cent decrease.
This means renewal revenue in
2013 will be around 10m lower than
expectations. However, adjusted pre-
tax profit for the year ending in
March will still meet market expecta-
tions of 127m.
HomeServe also announced it will
sack 200 UK staff after suspending its
telesales operations in October.
The firm is reviewing marketing
techniques, retraining sales staff and
has reopened thousands of customer
complaints.
The one-off cost of the restructur-
ing, which also includes outsourcing
its customer complaints division to a
third party, are now expected to cost
around 20m this year, compared to
the 10m the firm estimated in
November.
The groups telephone sales unit,
which will retain 100 staff, remains
closed without a restart date.
Shares in the FTSE 250 firm which
have dropped 42 per cent since it sus-
pended its UK sales activities slipped
a further 12 per cent yesterday to
240p.
HomeServe
insurance
income dips
INSURANCE

CHIEF executive Mike Lawries deci-

sion to leave Misys at the end of
March has reduced the chance of a
rival bid derailing the software
makers takeover of Swiss rival
Temenos, a deal seen by some ana-
lysts as a quick but poor fix to
tackle weak demand.
Lawrie is taking the top post at US-
based tech services company
Computer Sciences Corp after five
years at the British company.
Misys yesterday named Tom
Kilroy, its general counsel, as acting
chief executive to lead the negotia-
tions with Temenos.
Misys and Temenos, which com-
pete in banking software, laid out
more terms of their proposed all-
share merger, which was flagged on
Friday, after market close on
Tuesday, with investors in the British
company owning 53.9 per cent.
Analysts said that with the depar-
ture of Lawrie, who has a reputation
as a dealmaker, the chance of anoth-
er bidder had receded.
Jefferies analyst Milan Radia said a
transaction between Misys and
Temenos was now the most likely
outcome.
Shareholders have been hopeful of
M&A activity that could boost both
companies prospects against a back-
drop of weak demand from banks
still reeling after the financial crisis.
The lacklustre reaction from
investors yesterday, however, raised
questions as to whether the compa-
nies falling into each others arms
was the best solution, despite both
highlighting increased revenue
opportunities and cost savings.
Misys shares, which rose to a five-
month high of 353p on 31 January,
closed down 8.5 per cent at 298p yes-
terday, valuing the firm at almost
1.1bn.
Misys boss to move to the US
BY HARRY BANKS
M&A

International
Power falls on
weak outlook
BY HARRY BANKS
ENERGY

BY HARRY BANKS
TECHNOLOGY

News
20 CITYA.M. 9 FEBRUARY 2012
TAKINGS TUMBLE AT STAGECOACH ARTS
PERFORMING arts school company Stagecoach said yesterday its profits before tax in
2011 were 650,000, a 10.5 per cent fall from the previous years figure of 727,000. The
group which runs 684 schools worldwide said the drop in profitability was expected,
after a significant investment in marketing and advertising. Network fees over the year
edged up slightly, totalling 29.3m compared to 29.2m a year ago.
ANALYSIS l International Power
p
2Feb 3Feb 6Feb 7Feb 8Feb
340
345
350
335
330
333.00
8 Feb
MINING giant Rio Tinto yesterday
helped to give a boost to the mining
sector as it announced a $3.4bn
(2.1bn) expansion in its iron ore oper-
ations in Australia.
The FTSE 100 companys move is
aimed at stepping up production by
more than 50 per cent in anticipation
of growing demand from China.
Rio, the worlds second largest iron
ore producer, said it expects to boost
output from its mines in Western
Australias Pilbara iron belt to 283m
tonnes a year by the second half of
2013, up from the current 225m.
That would represent about a fifth
of current world trade in the key steel
making ingredient.
By the end of March, Rio said it
expects to lift its operating capacity to
230m tonnes per year. Only Brazils
Vale mines produces more iron ore.
The programme remains on track
and we are bringing new iron ore pro-
duction on stream at a time when
demand from Asian markets is fore-
cast to grow strongly, while industry
supply growth remains constrained,
Rio Tintos iron ore division chief Sam
Walsh said in a statement.
Rio said its longer-term plan called
for a capacity increase to 353m tonnes
a year by the end of 2015.
The companys share of the
increased investment will be $2.9bn,
with minority partners shouldering
the remaining $500m.
The scale of the expansion means it
will not be complete until 2015 and
some environmental permits are still
required.
Analysts at Numis said: The major
expansion continues as Rio keeps its
nose well in front for iron ore growth.
Rival BHP Billiton yesterday reported a
half year profit drop as it warned that
the Eurozone debt crisis could hamper
its growth.
Rio is due to release its full year
results today.
NISSAN is on track to be the most
profitable of Japans three big car-
makers this year, after record car
sales last year and improved market
share in every major region pushed
up quarterly operating profit.
Nissan kept its net profit forecast
at 290bn (2.37bn) for the year to
end of March, ahead of Hondas fore-
cast for 215bn and Toyotas 200bn.
It looks like the company is doing
pretty well compared to Toyota and
Honda, said Hiroyuki Fukunaga,
chief executive of Investrust, noting
Nissans nine-month operating
profit now totalled 84 per
cent of its annual target.
These were positive
results, the upward
[forecast] revision from
Toyota led to hopes for
the next financial year,
but Nissan seems like its
going at cruising speed, he
added.
Nissan also kept its forecast for
full-year operating profit of 510bn
which is below analysts forecasts.
Nissan reports under
Japanese accounting stan-
dards, with earnings from
China included in oper-
ating income, while its
two main rivals report
under US accounting
rules, with their earn-
ings from China included
in their net income fig-
ures.
Nissan driving towards victory against
Toyota and Honda in race for earnings
EUROPEAN Goldfields merger with
Eldorado Gold was given the green
light by companies representing insti-
tutional investors yesterday.
Institutional Shareholder Services
and Glass Lewis & Co recommended
the deal ahead of a shareholders vote
on 21 February.
Eldorado in December announced a
friendly takeover bid for European
Goldfields valued at the time at $2.5bn
(1.6bn).
European Goldfields president and
executive chairman, Martyn Konig,
said: The positive recommendations
of ISS and GL strengthen our belief
that the consideration shareholders
will receive is fair, and that it is in their
best interests to vote for the merger
with Eldorado. The companies also
said that regulatory hurdles to the
deal had been cleared.
Eldorado has operations in Brazil,
China and Europe, while European
Goldfields owns 95 per cent of a lead,
zinc and silver mine in Greece.
European Goldfields gets
nod for Eldorado merger
MINING

RUSSIAN gold and silver miner

Polymetal yesterday bought out
AngloGold Ashanti from a joint ven-
ture in Siberia for $20m (12.6m).
FTSE 100-listed Polymetal acquired
the 50 per cent it did not already own
of the Veduga deposit in Russias
Krasnoyarsk region.
The companies worked on the proj-
ect together from 2008 but Polymetal
has found new partners. AngloGold
Ashanti is a miner with headquarters
in South Africa.
Polymetal said in a statement that
$20m had been paid in cash and that
the joint venture had now been ter-
minated.
We are satisfied with consolidation
of ownership of Veduga, said Vitaly
Nesis, chief executive of Polymetal.
We believe this is the first step
towards acceleration of development
of this highly promising asset.
Vedugas expected reserves were
estimated in 2010 at 2.8m ounces of
gold with a metal content of 2.54-11.37
grams per tonne of ore. Polymetal
shares received a boost last month
after speculation that it could merge
with Russian rival Polyus. However,
Polymetal denied the rumours.
The company acquired a premium
London listing last year and entered
the blue-chip FTSE 100 index in
December.
Its latest results saw sales revenue
jump 45 per cent in the year ended 31
December, buoyed by 57 per cent
growth in the final three months of
the year.
Sales totalled $1,339m in 2011, up
from $924m the year before, with the
majority of that growth owing to the
strong rise in copper prices.
However, Polymetal, the fourth-
largest gold producer in Russia, admit-
ted that annual gold production was
flat.
Polymetal buys out Ashanti
BY JOHN DUNNE
MINING

Rio Tinto to
pump $3.4bn
into iron ore
BY JOHN DUNNE
MINING

BY HARRY BANKS
AUTOMOTIVE

News
21 CITYA.M. 9 FEBRUARY 2012
NEWS | IN BRIEF
Airbus to check all plane wings
European air safety officials extended
checks for Airbus A380 wing cracks to
the entire superjumbo fleet yesterday and
said the widespread defects could pose a
safety risk if left unremedied. The move to
inspect all 68 A380s in service came as
Qantas Airways grounded one of its
planes for up to a week following the dis-
covery of 36 separate cracks in wing
parts. The new measures by the European
Air Safety Agency (EASA) reflect the
results of a first round of checks, which
found cracks in almost all of the planes
inspected, spokesman Dominique Fouda
said.
Grainger still selling properties
Property investor Grainger said UK house
prices had proved surprisingly resilient
and that it continued to sell off properties
as it cuts debt and braces for what CEO
Andrew Cunningham believes will be an
orderly breakup of the Eurozone. The 100
year old company said in a trading state-
ment yesterday that gross rents rose 22
per cent to 30.4m in the four months to
the end of January as acquisitions helped
offset a drop in rental income in Germany.
The company said it was continuing to see
growth in rental income and that vacant
UK properties disposed of during the peri-
od had, on average, sold for 5.8 per cent
more than their valuations in September
2011.
CVS Caremark raises its forecasts
CVS Caremark has raised its full-year
profit forecast as it wins over former
patrons of Walgreen who fill prescriptions
with pharmacy benefits manager Express
Scripts. CVS also posted a fourth-quarter
profit in line with analysts expectations,
helped by better-than-expected revenue.
CVS added three cents per share to its
first-quarter and full-year adjusted earn-
ings forecasts. It now expects to earn 61
cents to 63 cents per share this quarter
and $3.18 to $3.28 per share this year.
MORE NEWS
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ANALYSIS l Rio Tinto
p
2Feb 3Feb 6Feb 7Feb 8Feb
3,950
4,000
4,050
3,900
3,850
3,873.50
8 Feb
NORWAYS Statoil yesterday reported
a 34 per cent jump in net profit in the
fourth quarter.
The countrys largest oil and gas
company saw net profit reach
NKr14.5bn (1.5bn), triggered by high-
er oil prices.
Statoil delivered record financial
results, further improved safety and
made important strategic progress in
2011, said Helge Lund, Statoils chief
executive.
He said the company had a good
year for exploration in 2011, with dis-
coveries in the North Sea and the
Barents Sea that helped to add more
than 1bn barrels to Statoils resource
base.
The company said it was planning
capital expenditure of $17bn this year
compared with $16bn in 2011. Oil pro-
duction was 1.975m barrels of oil
equivalent for the quarter.
Statoil profits up thanks
to increases in oil prices
Statoil enjoyed a strong fourth quarter Picture: GETTY
BY HARRY BANKS
ENERGY

The Riverside Company

The global private equity firm has
expanded its UK team by appointing
Martin JJ Scott as a partner in its
London office. Scott, who was previ-
ously transactions services partner at
KPMG, will work as a member of
Riversides new London office, joining
existing partner Trey Vincent.
King.com
King.com, the fourth-largest games
company on Facebook that is backed
by Index Partners and Apax Partners,
has hired Emma Vaz, formerly of
Oberon Media, as vice president for
business development and partner-
ships for the EMEA region.
Per Ardua Associates
The financial services recruitment and
advisory firm has appointed Charles
Harvey to lead the firms asset man-
agement recruitment practice. Harvey
joins from Hammond Partners, where
he was co-head of asset management
sector recruitment.
Towergate Insurance
Scott Egan has been appointed as
group finance director at Towergate,
subject to FSA approval, to replace
former group chief finance officer Ian
Patrick. Egan will move from Brit
Insurance Holdings, where he has
been group chief financial officer
since January 2011.
Jones Lang LaSalle
Angus Wade has joined Jones Lang
LaSalles global hotels team as executive
vice president for central and eastern
Europe, based in London. Wade most
recently ran the JLL capital markets
team in Prague, after setting up the
Slovak office of King Sturge.
Doyle Collection
The luxury hotel group has promoted
Pat King to chief executive. King joined
parent company Jurys Doyle Hotel
Group in 1990 and was appointed as
chief financial officer in 2006.
Berwin Leighton Paisner
Steve Clark, an expert in cross-border
real estate finance in the banking
team at Dechert, is joining the firm as
a partner. Clark qualified with
Clifford Chance and spent eight years
in its banking department before
moving to Addleshaws.
CITY MOVES | WHOS SWITCHING JOBS Edited by Harriet Dennys
+44 (0)20 7092 0053
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
Delays in Eurozone
keep markets flat
U
S stocks closed flat in another
thinly traded session yesterday
as Greece remained in a stand-
still over accepting tough
reforms in exchange for a bailout criti-
cal to avoiding a chaotic default.
Underlying confidence kept the
Dow near an almost four-year high
notched on Tuesday, though trading
has been quiet since last weeks stellar
employment report. The S&P and
Nasdaq are both up 0.3 per cent so far
this week while the Dow is essentially
unchanged.
Randy Frederick, director of trading
for Charles Schwab in Austin, Texas,
said he would use any pullback on
Greece as a buying opportunity. And
if the situation there gets resolved,
well move higher even faster.
Greek party leaders gathered yester-
day to agree reforms demanded by the
European Union and the International
Monetary Fund after delays.
European Central Bank policymak-
ers were still divided on what contribu-
tion the bank could make to a
restructuring of Greeces sovereign
debt, sources said. The ECB has ruled
out joining private creditors in volun-
tarily accepting a reduction in the
value of the Greek bonds it holds.
We would take a hit if Greece is
unable to come to a deal, but lately
weve been decoupling from Europe as
markets catch up to how strong the
economy appears to be, said
Frederick.
Dow component Walt Disney rose
0.7 per cent to $41.27 a day after it
reported quarterly profit that topped
expectations.
Of the 315 companies in the S&P 500
that have reported earnings to date, 61
per cent have come in above analysts
expectations, a rate below that of pre-
vious quarters.
The Dow Jones industrial average
was up 5.75 points, or 0.04 per cent, at
12,883.95. The Standard & Poors 500
Index was up 2.91 points, or 0.22 per
cent, at 1,349.96. The Nasdaq
Composite Index was up 11.78 points,
or 0.41 per cent, at 2,915.86.
The Dow on Tuesday marked its
highest close since May 2008; stocks
have rallied from late last year on cen-
tral bank action and signs of an
improving economy.
Polo Ralph Lauren surged 9.2 per
cent to $171.49 after the clothing
maker reported better-than-expected
results for the holiday quarter and
raised its margin forecast.
Energy shares were the biggest
decliners, as Brent and US crude oil
futures pared gains after a report
showed a build-up in US crude invento-
ries. The S&P energy index fell 0.5 per
cent.
B
RITAINS blue chips closed a
touch lower yesterday as
investors awaited more clarity
on a Greek debt deal.
Greek party leaders gathered to
agree reforms needed to secure a
new EU/IMF rescue package neces-
sary to avoid a chaotic default that
would aggravate Europes financial
crisis.
Rating agency Standard & Poors
added pressure on negotiations
between Greece and private bond
holders by stating Athens will likely
not achieve sustainable debt levels
with a 70 per cent reduction in the
value of bonds held by its private
creditors.
Uncertainty over Greeces future
weighed on Britains blue chip
index, which closed 14.33 points
lower, or 0.2 per cent, at 5,875.93
points, having traded 92 per cent of
an already anaemic 90-day volume
average and after hitting a six-month
high of 5,916.20 in intra-day trade.
My central case is that they will
vote to do the cuts and they will try
above everything to stay in the euro,
said Jane Coffey of Royal London
Asset Management.
There has to be a 20 per cent risk
that this is not possible and this is
why I dont want to be completely on
that bet.
Some banking shares such as
Lloyds Banking Group extended
gains, boosted by positive broker
comments as Citigroup suggested
the recent rally had still some room
to run.
Share observation of previous
financial crises suggests that bank
share prices usually trough only 1-2
years after the peak in loans and 3-5
years before the de-leveraging
process completes. UK bank lending
peaked in December 2009, Andrew
Coombs, analyst at Citi said.
Societe Generale, meanwhile,
highlighted RBS, HSBC and Standard
Chartered among those best posi-
tioned to navigate the current inter-
bank lending drought.
Barclays, however, closed down 1.3
per cent while Royal Bank of
Scotland lost 0.1 per cent.
Also strong was Reckitt Benckiser,
which topped the FTSE 100 with a 2.9
per cent rise, as the consumer goods
groups full-year results beat market
expectations.
BHP Billiton was among the worst
performers, falling 2.3 per cent as
the world's biggest miner reported a
rare fall in earnings.
March futures on the FTSE 100,
which settled at 5,828, indicated the
market had entered into a consolida-
tion phase and further declines were
likely, although their extent was
expected to be limited, Nicolas
Suiffet, a technical analyst at
Trading Central, said.
Intraday momentum oscillators
are turning down from their over-
bought territories and call for a fur-
ther decline towards the 38.2 per
cent Fibonacci retracement level at
5,770, Suiffet said.
However, the downward poten-
tial is likely to be limited by either
the 50 per cent Fibonacci retrace-
ment level at 5,744 or the rising 20-
day moving average currently at
5,710.
Outside the top flight, Mothercare
gained 7.5 per cent after it
announced that Lovefilm chief exec-
utive Simon Calver was joining to
lead the firm.
And Supergroup plunged more
than 17 per cent on the back of the
retailers profit warning.
Misys tumbled 8.5 per cent after
management recommended its
2bn merger with Tenemos.
Investors waiting for Greece
put the brakes on FTSE rally
THELONDON
REPORT
THENEW YORK
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Barclays PLC
240
220
200
180
160
Dec Jan Feb
p
233.60
8 Feb
BARCLAYS
Citigroup released a note on UK banks yesterday, maintaining its overall
overweight rating on the sector. The broker named Barclays its top pick
in the sector, with a buy rating and an increase in its target price from
245p to 275p. In the same note, Citi maintained its buy rating on
Lloyds, HSBC and Standard Chartered, but downgraded RBS to neutral
with a target price of 30p.
ANALYSIS l Persimmon PLC
540
520
500
480
460
Dec Jan Feb
p
546.00
8 Feb
PERSIMMON
Panmure Gordon downgrades the housing group from buy to hold follow-
ing a strong performance in the share price since the start of the year. The
broker also ups its target price on the stock from 545p to 560p, and says it
still sees it as a good quality business that it expects to report a strong period
of trading when it releases preliminary results on 28 February. Panmure con-
siders Barratts, Taylor Wimpey and Galliford Try as better value.
ANALYSIS l Cairn Energy PLC
700
600
500
400
Dec Jan Feb
p
348.60
8 Feb
CAIRN ENERGY
JP Morgan Cazenove downgrades the oil & gas group from overweight to
neutral and drops its target price from 480p to 385p. The broker said that
although the shares look cheap relative to the companys core net asset value,
it struggles to see near term catalysts that could bring about a material re-
rating. JP Morgan says drilling on Greenland is unlikely before mid 2013-2014
at the earliest and would rather wait to see how Cairn uses its cash.
p
2Dec 14Nov 22Dec 16Jan 3Feb
6,000
5,400
5,600
5,200
5,800
ANALYSIS l FTSE
5,875.93
8 Feb
Hogan Lovells
Hogan Lovells has appointed Nicholas Cheffings
as chairman, effective from 1 May 2012 for a
three-year term. Cheffings will take over from
current co-chairs Claudette Christian, who will
continue with her practice, and John Young,
who will retire on 30 April. Cheffings joined
Lovells in 1999, becoming a member of the
Lovells Partnership Council and the Conflicts
Panel. He is currently a board member, chair of
the partner admission committee and a
member of the audit committee.
News
22 CITYA.M. 9 FEBRUARY 2012
Business Features| www.cityamcareers.com
23
F
IVE years ago I was working on
a compliance mandate for an
investment bank. As well as
compliance professionals, the
client was open to seeing individuals
from other professions, in this case
legal. Yet to retain the interest of
lawyers and stop them from termi-
nating the conversation it was
imperative not to mention the word
compliance in the first instance.
Rightly or wrongly, compliance was
perceived by some as boring, back
office and box ticking.
Not anymore. Although already
underway, regulatory change
which gathered pace following the
demise of Lehman Brothers has
catapulted the compliance profes-
sional into the spotlight.
Institutions, both financial and cor-
porate, cannot move for fear of
breaching regulations being rolled
out in the UK, Europe and US. And
as has been witnessed in the last 12
months, the cost of getting it wrong
may expose that institution to a
political, public and financial back-
lash on a massive scale. Compliance
is here to stay and the role of the
compliance professional will be
amplified.
Since the financial crisis, it has
been imperative that financial serv-
ices organisations have an effective
compliance function. From 2008
and 2009 institutions began to focus
on the need for senior and strategic
compliance hires to better align and
integrate the function with the busi-
ness as a whole. This resulted in the
appointment of heads of different
departments, from financial crime
to capital markets, as well as global
heads of compliance and money
laundering reporting officers. At the
same time, we saw a closer union
between the compliance teams and
their respective counterparts in risk
and legal. As this trend gathered
pace in 2010, competition for senior
compliance professionals in the
market was fierce, driving up
salaries on average by 18 per cent
in many instances total annual com-
pensation eclipsed levels previously
seen in legal and risk. All this
reflects the rise of the compliance
professional away from a purely
operational function, a view reiterat-
ed by Reza Zaidi, head of compliance
UK at GE Capital, who states that the
profession has evolved into a busi-
ness-partnering role, whereby it is
necessary to translate current and
future regulatory initiatives into
what this means for the business in
its short/long term objectives.
The first half of 2011 saw the vast
majority of key strategic compliance
hires in place. Firms then turned
their attention to bringing in addi-
tional resources to meet their com-
pliance and regulatory obligations
which kept recruitment levels at an
all-time high. For the most part, this
involved recruiting specialist com-
pliance officers at junior to mid-lev-
els of experience to deal with the
raft of new regulations and legisla-
tive measures now in play, from the
likes of MiFID, Basel and Dodd-
Frank. With an increasing need for
individuals with regulatory knowl-
edge, firms sought out professionals
from other sources within the regu-
latory arena, such as the financial
services authority and law firms. Yet
the hive of recruitment activity in
early 2011, which again saw salaries
rise by 8 per cent, has been stifled by
the on-going European crisis and
fears of a double dip recession in the
UK market, which has impacted on
headcount for additional hires.
Looking at this year and beyond,
firms in general are concerned with
keeping a tight rein on costs across
all areas of their business. However,
with little abatement in the flow in
regulatory legislation combined
with ever increasing scrutiny from
regulatory bodies, anyone whose
business is regulated has little
choice but to continue to up-scale
their compliance operations. As
Imtiaz Khan, head of central compli-
ance at Credit Agricole says:
Compliance officers today are often
a one stop shop for advice, monitor-
ing, training and regulatory news
which means experience, knowhow
and flexibility are key require-
ments.
We anticipate continued demand
for professionals in monitoring and
testing and regulatory compliance,
not just within the banking fraterni-
ty, but also into asset managers and
investment houses. I suspect if I
made the same calls as five years ago
today, no one would hang-up this
time.
James Beale heads the compliance and
legal search desk at ADL Partners (assisted
by Radhika Chudasama, consultant).
Ever-increasing regulation is
boosting compliance careers
JAMES BEALE
ADL PARTNERS
Prior to the financial crisis the term compliance was taboo when trying to get
the best candidates now the value of the role has risen beyond recognition
W W W . C I T Y A M C A R E E R S . C O M
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THE question is not whether or not the West
ought to intervene in Syria but when it will.
For 11 months, President Assads regime has
rejected all offers for substantive reform,
while massacring upwards of 7,000 civilians,
displacing tens of thousands more and run-
ning a network of arbitrary detention facili-
ties rivalling Saddamist Iraq.
Reports of rapes and torture from human
rights groups are horrifying, and contrary to
popular belief, the regime has been using its
air force to fire on protesters since last June
as recounted in the UN High Commissioner
for Human Rights September report on Syria.
In short, an abattoir state has emerged with
the enthusiastic help of foreign powers and
proxies that are already intervening in Syria.
According to Mahmoud Haj Hamad, the for-
mer head financial auditor at the Syrian
defense ministry and one of the highest-level
political defectors from the Assad regime, a
special US-dollar slush fund replenished by
Iran was opened to pay thousands of military
consultants from Irans elite revolutionary
guard corps and the Lebanese terrorist group
Hezbollah to assist in the repression. Fresh
weapons, one Syrian rebel spokesman told me
last week, arrive regularly from Iran, smug-
gled into the cargo holds of civilian aircraft.
Meanwhile, Russia has enjoyed since 2006 a
$4bn defense contract with its only remain-
ing ally in the Middle East, the equivalent of
10 per cent of Russias total arms sales. In late
January, well after the UN had credibly
accused Assad of crimes against humanity,
Moscow inked a $550m deal to sell 36 Yak-130
aircraft to Damascus.
Vladimir Putin helped destroy a much
watered-down UN Security Council resolution
that called for Assad to step down from power
and allow a peaceful transition of govern-
ment to take place. It is determined to stand
by Assad, as he pursues a scorched-earth poli-
cy of wiping out any armed or civilian resist-
ance to his dictatorship, a policy that can only
lead to a humanitarian catastrophe along the
lines of the Balkans, or even Rwanda. One
member of the Syrian National Council, the
Istanbul-based umbrella opposition body, has
just told me that US policymakers say that
Assads butchers bill will determine the
prospects for Western intervention. I would
gladly risk a charge of pessimism to say that
that bill will only increase in the days to
come.
Stated US policy now is to organise a con-
tact group for Syria similar, but not identi-
cal to the one formed for Libya in advance of
the imposition of a no-fly zone. State
Department spokesman Victoria Nuland has
recently floated the idea of providing
humanitarian aid to the Syrian people,
although she explicitly ruled out interven-
tion. How does she expect to get truckloads of
food, medicine and aid into a war zone with-
out some form of military accompaniment?
Republicans in Congress, namely senator
John McCain, have begun to advocate arming
the Syrian rebels. This is purposive. With a
presidential election looming in America, the
Republicans will want to confront the Obama
administration on its lethargic and thus-far
ineffective strategy toward Syria.
Barack Obama may prefer to farm out his
Middle East policy to Turkey and the Arab
League, but hell also have to consider the
likelihood that Mitt Romneys best attack ad
against him will be CNNs live broadcasts
from the Levant.
Michael Weiss works for the Henry Jackson Society.
24
The Forum
CITYA.M. 9 FEBRUARY 2012
Afghanistan, Iraq, Libya... Is
it time to intervene in Syria?
cityam.com/forum
MICHAEL WEISS
YES
ANOTHER day, yet more terrible news from
Syria. And yet the United Nations has been
neutered by China and Russias regrettable
vetoes. The people of Syria are in dire need of a
peaceful solution, but are being let down by an
international community which cannot agree
on a course of action. The only hope, perhaps, is
for combined pressure to get President Assad to
adopt constitutional reform and to get the
message out quickly in order to reduce tensions.
The city of Homs is now seeing its sixth day of
shelling by loyal members of the Syrian Army.
Civilian casualties are high. Estimates of the
numbers vary, but many agree that several
thousand have been killed in total since the
uprising against Assads regime began 10
months ago. Promises by the leadership to halt
the violence have come to nothing.
There are many obstacles to a peaceful solu-
tion. Commentators have been quick to invoke
parallels with the situation in Libya last year:
once again, people are rising up against a dicta-
tor. However, Syria is a very different country.
Whereas Libya is relatively homogenous, Syria
is a complex mix of religions and communities.
Assad himself, along with many of his top offi-
cials and army commanders, comes from the
minority Alawite community. Any successor
will probably be Sunni, given 70 per cent of the
population is such. How would a Sunni-led
regime treat the Alawite and Christian minori-
ties? The portents from both Lebanon and Iraq
are not good, and are strong arguments for non-
intervention.
The chances of getting the international com-
munity to speak as one are slim after the UN
vote. There was nothing inside the resolution
text which warranted a veto it did not call for
further sanctions and military action was not
mentioned. There is little doubt that the veto
was, at least in part, because Russia and China
believed Western powers exceeded their man-
date under UN Resolution 1973 when pursuing
regime change in Libya as Russia and China
said at the time. However, this can be no excuse
for inaction.
The vetoing of the UN resolution, while send-
ing entirely the wrong message to the Syrian
leadership, thankfully precludes the already
unlikely prospect of Western military interven-
tion. Our recent track record, particularly in
Iraq and Afghanistan, has not been good. This
ensures that the West does not become
ensnarled in what could become an ugly civil
war.
So what next? The international community
has already passed multiple rounds of sanctions
against Syria. The government will continue to
bring the utmost diplomatic pressure to bear
upon the leadership, and will find arenas other
than the UN to do so. However, perhaps the best
chance to help the people of Syria lies with
pressing the Russians in particular to get Assad
to see sense. The offer of genuine and speedy
constitutional change, combined with an
amnesty, may just about be enough for both
sides to stop the violence and sit around the
table. But the role of Russia is crucial in this
respect. She has much to lose from Syrias insta-
bility and from the loss of credibility interna-
tionally if she is seen to acquiesce in this
bloodshed. Pressure through the Arab League,
with the innate political and cultural proximity
to the issue, and in tandem with Turkey, could
also prove to be most effective. But such actions
must always have uppermost in mind the plight
of the Syrian people.
John Baron is a Conservative MP. He served in the
Royal Regiment of Fusiliers and was a fund manager
for Henderson and Rothschild.
JOHN BARON MP
NO
Twitter: @cityamforum
on the web:
cityam.com/forum
or by email:
theforum@cityam.com. Top responses will be reprinted in The Forum.
Agree? Disagree? Got a sharp comment?
The Forum wants you to join the debate.
COMMENT NOW ON
25
Financial literacy
campaigners call
for an automatic
enrolment at 16
Bank accounts
should become
a rite of passage
F
INANCIAL education should be made a
compulsory part of every schools curricu-
lum that was the motion Justin
Tomlinson MP put forward in Parliament
just before Christmas. Tomlinson pointed out
that debit card usage now exceeds cash usage.
Yet about 19 per cent of parents have never dis-
cussed how to spend money with their
teenagers and 32 per cent have yet to discuss
how to budget, or even describe what one is,
while only 36 per cent of people understand
that the term APR relates to payments.
No wonder that we are seeing a proliferation
of payday loans whose interest rates are close
to usurious and make the interest rate charged
by a bank for unexpectedly being overdrawn
look a bargain.
Regrettably, politicians shied away from
demanding real change, preferring a tame
motion asking merely for the government to
consider the provision of financial education
as part of the current curriculum review. Since
the government had already said that it was
actively considering introducing financial lit-
eracy as part of the PSHE (personal social
health and education) curriculum, this was an
opportunity lost.
The PSHE curriculum is almost universally
derided by pupils and teachers alike. It is seen
by many as a filler and isnt taken seriously,
partly because there is no examination. As a
teacher giving evidence to the committee
noted, nothing concentrates the mind like an
exam and as a further witness also noted
noting concentrates a teachers mind like an
exam. Financial education is too important to
be tagged on as an also-ran; it should be fully
integrated into the maths syllabus and tested.
Furthermore, given its importance, we
should help our children understand personal
finance at a much earlier age, especially as fric-
tionless electronic money transmission,
whether through debit or near-field communi-
cation cards or by mobile phone messaging,
will soon be the norm.
When a child enters their twelfth year of for-
mal schooling in Year 11, coming up to the
age of 16 Parliament should insist that each
child is given, without charge, a bank account,
at a bank of his or her choice.
The mechanics are simple. The bank
account will arrive automatically, from central
government, at the same time as the individ-
ual receives a national insurance number. The
only form to be completed is one choosing at
which bank the individual wishes to open the
basic account, and to advise that before the
first withdrawal he or she will need to have vis-
ited a branch to provide a single piece of iden-
tification and a specimen signature.
The banks anti-money laundering require-
ments can be vouched for by central govern-
ment as they will have completed similar
checks when issuing an individuals national
insurance number.
Therefore, with minimal bureaucratic has-
sle, each child starts better equipped for his or
her financial journey. Children can learn how
to pay for goods and services electronically,
budget, save, and participate fully in a com-
mercial society. No longer will financial litera-
cy be an academic subject, it will be practical,
personal and highly relevant.
Simon Culhane is chief executive of the Chartered
Institute for Securities and Investment (CISI).
A British disease
Simon Denham is right in many of
his observations [Politicians are
slaughtering UK finance the
goose that is still laying the golden
egg, Monday], particularly the way
politicians are keen to jump on any
current popular issue, banker-
bashing at present, and will happi-
ly destroy the income that is
feeding them in so doing.
It is a very British disease, this
inability to recognise and applaud
success. It explains, in response to
Denhams observations about
Mercedes and others, why the
Germans do not indulge in such
behaviour. In British society the
politics of envy is alive and well.
The fact is, the UK has hit the
rocks, largely as a result of out-of-
control government spending.
While I cannot support excessively
paid bankers at a time when per-
formance is going downwards,
and I imagine like most that Fred
Goodwin did get it hopelessly
wrong, having said that, what
wealth has our government creat-
ed in the past two weeks by stop-
ping Stephen Hesters bonus, and
defrocking Goodwin?
Richard Williams
Speak your mind
Readers are invited to comment
on the web: cityam.com/forum;
by email: theforum@cityam.com;
and on Twitter: @cityamforum.
The best will be reprinted here.
RAPID RESPONSES
SIMON CULHANE
CITYA.M. 9 FEBRUARY 2012
The Forum
T
HE president of the
United States,
according to the
late Clinton
Rossiter, is Americas
Manager of Prosperity.
Presidents sink or swim
on their economic
records. When the econo-
my booms, $15 trillion in activity can no matter how
absurd be attributed to the astute management of
one man. The same is obviously true in a downturn.
Facing re-election, President Barack Obama has
repeatedly blamed Congressional Republicans for halt-
ing his common sense measures to boost market
confidence and create jobs. His argument has been
simple: if the Republicans dont want to help me build
a recovery, they can own the malaise. But after years
of dire job numbers, the Department of Labor released
figures pointing towards a nascent economic recovery.
In January the US economy added 243,000 jobs,
resulting in unemployment falling to a three year low
of 8.3 per cent. To top the day off, the Nasdaq surged
to an 11-year high. Having largely disowned the econo-
my, President Obama is now suddenly seizing it back.
This changes Novembers narrative. President
Obama may go into the election with an economic
record worth defending. The Republicans will have to
convince voters that with Obama at the helm the ship
is still heading towards the rocks. They can even point
to Obamas inconsistent message. Just a few months
ago Obama was claiming that the do-nothing
Republicans in Congress were stalling the recovery
through their inaction. Now hes asking Republicans
not to move a muscle and muck it up.
But behind the positive headlines remain some
deeply worrying trends. Over 1.3m Americans a 30-
year high dropped out of the labour market in
January. The unemployment rate is dropping, in large
part because the labour market is shrinking. The real
unemployment rate, including those that have simply
given up looking for work, is in excess of 10 per cent.
They are the forgotten statistics of the Obama recov-
ery. Or so the Republicans will say. Obama will need
to give voters more than just numbers. Voters will
need to see the recovery for themselves in their neigh-
bourhoods.
The Obama campaign will continue to focus on Mitt
Romney, even after the frontrunner witnessed some
miserable results on Tuesday night. Having won
Nevada on Saturday, the Romney campaign will be
asking how it couldnt seal the deal in Minnesota and,
especially, Colorado. Rick Santorums stunning victo-
ries in both states as well as the non-binding
Missouri primary gives his campaign new purpose.
He now looks increasingly like the alternative to
Romney, but needs money. Just three weeks ago,
Newt Gingrich enjoyed a 21-point lead in Minnesota,
where he ultimately finished last. His post-Nevada
press conference led one reporter to ask him how he
could go forward if Mitt Romney is still in your head.
Everyone is now asking the same question.
Some pundits claim that the Republicans are suffer-
ing from an enthusiasm gap. Turnout in Florida,
Nevada, Colorado and Minnesota was lower than
2008. But mobilising the party faithful shouldnt be
their only concern. Polls suggest that the longer the
Republican race goes, the more independent voters are
turned off by the negativity and shift to Obama. Signs
of an economic recovery will exacerbate the problem.
Mounting a campaign without the base is a major con-
cern. Winning one without independents is impossible.
Ewan Watt is a Washington, DC-based consultant.
You can follow him on @ewancwatt
Both sides do battle in
war for independents
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
US ELECTIONS
BY EWAN WATT
Lifestyle | Technology
26 CITYA.M. 9 FEBRUARY 2012
Headphones are about more
than sound quality make
a statement with some of
the most stylish musical
headgear on the planet
Blow your
mind with
mega bass
W
hen police in New Zealand arrested suspected
online pirate Kim Dotcom, they were accompanied
by a dog unit and a SWAT team armed with auto-
matic weapons.
Could there be a better visual representation of the gulf
between the people attempting to police the internet and
those suspected of corrupting it? The man is even named
after the internet, for Gods sake (to Mr and Mrs Dotcom, a
child. We shall call him Kim. I wonder what hell be when
he grows up?). Turning up with the cavalry worked when
the master criminals were drug lords and Mobsters. But
Dotcom is a 20-stone computer hacker police could proba-
bly have lured him into a cell with a bucket of ice cream and
a copy of Razzle.
There is an air of pointlessness to the whole episode.
Trying to out-muscle hackers is like trying to kill a swarm of
gnats with a bazooka. There are too many of them; they
move too fast. Sure, you might get the odd one, but its
going to be a very expensive process and by the time you
get there, there are going to be another hundred buzzing
around your head. This is a world where Anonymous can
intercept calls between the FBI and Scotland Yard. Toddlers
with a Fisher Price My First Smartphone can outwit our
finest security experts. That isnt to say we should just turn
the mad house over to the patients after all, revenues
from online crime are up there with those from drug traf-
ficking. But the emphasis has got to be on making online
structures safer and more efficient. Consumers have to be
tempted away from piracy with better services.
Not that Im defending Dotcom hes no angel. He has
convictions for insider trading, embezzlement and handling
stolen goods. He owns multiple passports and has a habit of
fleeing to avoid criminal charges (a New Zealand court
decided, on these grounds, to deny him bail, which seems
reasonable until you think about it for a zillionth of a second
and remember that this is a six foot six German called
Dotcom whose face is all over the news, who is stuck on an
island where did they expect him to go?). When police
caught up with him, he was barricaded in a safe room and
had to be physically cut out before he could be arrested. The
registration plate on his Mercedes (one of 18 luxury motors
in his fleet) reads GUILTY. Hes playing the starring role in
a badly written sci-fi movie.
From a legal point of view, things dont look good for
him a week ago Swedens Supreme Court rejected an
appeal from the founders of The Pirate Bay, meaning Peter
Sunde, Fredrik Neij, Gottfrid Svartholm and Carl Lundstrm
are going to jail. Personally, I dont really care what happens
to Dotcom as long as they string out the trial for as long as
possible. Its far more fun than Eastenders.
GEEK SPEAK
@steve_dinneen
Sending armed
cops to arrest a
hacker is like
shooting gnats
with a bazooka
TECH TALK
WHATS GOING ON IN THE WORLD OF GADGETS?
APPLE iTV PRICE AND SPECS LEAKED
Apple hasnt even come close to confirming
there will be an Apple TV dubbed iTV in the
US but that hasnt stopped its specs and
price being leaked. Retailer Best Buy carried
out a survey asking its customers if they would
be interested in a 42-inch, 1080p TV running
iOS, with access to the App Store and iCloud.
Best Buy reckon it will cost $1,499 (947).
With momentum like this, Apple better had be
building a TV or there are going to be a lot of
disappointed people.
TOMTOM IS WATCHING YOU
TomTom satnavs will in future help
insurers tell the difference between a
good driver and a bad one under a
scheme designed to revive the Dutch
navigation device maker's flagging
fortunes. The company, which made
its name as a maker of vehicle-based
personal navigation devices (PNDs),
said it had teamed up with UK-based
insurance firm Motaquote to offer
its first new insurance product.
RIM SAYS IT IS READY TO COMPETE
Next-generation software for BlackBerry's
smartphones is ready to compete,
Research In Motion's new chief executive,
Thorsten Heins, said this week. The
Canadian company has lost market share
and market value after being comprehen-
sively outplayed by technology giants Apple,
Google and Samsung. But it is betting that
yet-to-be-released products powered by its
new QNX operating system will help to
change its flagging fortunes.
An unofficial
Apple iTV concept
design created by
Guilherme
Schasiepen
SKULLCANDY HESH
NBA THUNDER
55
uk.skullcandy.com
Good sound quality comes second to
the bold statement these basketball-
inspired headphones make.
APPLE IN-EAR
HEADPHONES
30
apple.com/uk
Good quality, entry level headphones
that wont break the bank but will
give you a step up from the ones you
got free with your phone.
AKG REFERENCE
HEADPHONES
280
akg.com
If you want to stand out in a crowd,
these mean, green sound machines
are the headphones for you.
BEATS TOUR BY DR DRE
120
beatsbydre.com
These high resolution inner-ear
headphones give you excellent sound
quality as well as a ControlTalk fea-
ture, allowing for on-cable control of
your music and easy, high quality
hands-free calling.
WESC BANJO
35
wesc.com
These retro-styled, dandelion yellow
headphones are like a pair of sound
enhancing ear-muffs. At only 35,
they are a bargain.
SHURE SE535
305
shure.co.uk
These earphones are miniature engi-
neering wonders, packing in a dedi-
cated tweeter and dual woofers for
incredible depth of sound. They are
also great for isolating sound.
MONSTER MILES DAVIS
JAZZ HEADPHONES
300
beatsbydre.com
These tribute headphones to the jazz
legend claim to be set up for the ulti-
mate jazz experience.
BOSE QUIETCOMFORT 3
299
bose.co.uk
These lightweight, comfortable headphones give
you sumptuous sound and deep bass without
pointing you out on the tube as a hopeless hipster.
T
E
R
R
E
S
T
R
I
A
L
SUPER SMART ANIMALS
BBC1, 8PM
Part two of two. Liz Bonnin concludes
her search for animal intelligence as
she encounters grey whales that can
display their emotions.
CORONATION STREET
ITV1, 8.30PM
Carla seeks comfort from Peter, but
Simon catches them together.
Meanwhile, a domestic disaster strikes
Paul ahead of Lesleys return.
HOLIDAY HEAVEN ON EARTH
CHANNEL5, 7PM
A new trio of vacation ideas. Emma
Wilson reports from Lake Tahoe, and
Darren Kennedy explores the lesser-
known rural side of Tenerife.
BBC1
SKY SPORTS 1
7pmLive Premier League Darts
10.30pmTime of Our Lives
11.30pmPremier League World
12amRingside 1amPremier
League Darts 4.30amPremier
League World 5am-6amRingside
SKY SPORTS 2
7pmATP Tour Uncovered 7.30pm
Premier League World 8pmThe
Rugby Club 9pmRingside 10pm
WWE: Late Night Raw12am
WWE: NXT 1amTime of Our
Lives 2amAmericas Cup
Uncovered 2.30amThe Rugby
Club 3.30amAmericas Cup
Uncovered 4am-6amLive
International One-Day Cricket
SKY SPORTS 3
6pmEuropean Tour Golf 8pm
Live PGA Tour Golf: The AT&T
Pebble Beach National Pro-Am.
11pmEuropean Tour Golf 1am
Racemax 2am-3amTime of Our
Lives
BRITISH EUROSPORT
6pmLive WTA Tennis 9.30pm
WTA Tennis 10pmPoker
11pm-12.30amFutsal
ESPN
7pmGoal! 7.30pmESPN Kicks:
FA Cup 7.45pmLive Coppa Italia
9.45pmESPN Kicks 10pmOff
the Ball 10.30pmPremier League
World 11pmESPN Kicks: FA Cup
11.15pmESPN Kicks 11.30pm
Press Pass 2012 12amUFC
Unleashed 1amLive NBA
Basketball 3.30amESPN Kicks
3.45amAMA Supercross
5.45am-6amESPN Kicks: FA Cup
SKY LIVING
7pmCriminal Minds 8pmMy
Fake Baby 9pmThe Biggest Loser
10pmCriminal Minds 11pm
Unforgettable 12amBones 1am
CSI 2.40amMy Wife and Kids
3.30amBones 4.20amNothing
to Declare 5.10am-6amJerry
Springer
BBC THREE
7pmDoctor Who 7.45pmDoctor
Who Confidential 8pmJunior
Doctors: Your Life in Their Hands
9pmStrictly Soulmates 10pm
EastEnders 10.30pmRussell
Howards Good News 11pm
Family Guy 11.45pmAmerican
Dad! 12.30amStrictly Soulmates
1.30amJunior Doctors: Your Life
in Their Hands 2.30amBeing
Human 3.30amRussell Howards
Good News 4amSnog, Marry,
Avoid? 4.30am-5.25amSun, Sex
and Suspicious Parents
E4
7pmHollyoaks 7.30pmHow I
Met Your Mother 8pmThe Big
Bang Theory 8.30pmRules of
Engagement 9pmHow I Met
Your Mother 9.30pmHappy
Endings 10pmNoel Fieldings
Luxury Comedy 10.30pmChris
Moyles Quiz Night 11.25pm
The Big Bang Theory 12.20am
How I Met Your Mother
12.50amScrubs 1.45amNoel
Fieldings Luxury Comedy 2.10am
Chris Moyles Quiz Night 2.55am
Rules of Engagement 3.15am
Greek 4amUgly Betty
4.40am-6amSwitched
HISTORY
7pmMounted in Alaska 7.30pm
Pawn Stars 8pmIRT Deadliest
Roads: The Andes 10pmMud
Men 11pmPawn Stars 12.30am
Mounted in Alaska 1amIRT
Deadliest Roads: The Andes 2am
Ice Road Truckers 3amMud Men
4amDeep Sea Detectives
5am-6amCash Cowboys
DISCOVERY
7pmBear Grylls: Born Survivor
8pmWheeler Dealers 9pmIce
Pilots 10pmX-Machines 11pm
Deadliest Catch 12amBear Grylls:
Born Survivor 1amIce Pilots 2am
X-Machines 3amWheeler Dealers
3.50amMythbusters 4.40am
Industrial Revelations
5.30am-6amDestroyed in
Seconds
DISCOVERY HOME &
HEALTH
7pmSupernanny US 8pmJon
and Kate Plus 8 9pmI Didnt
Know I Was Pregnant 10pm
Change of Face 11pmTrauma
Unit 12amI Didnt Know I Was
Pregnant 1amChange of Face
2amTrauma Unit 3am
Supernanny US 4amA Baby
Story 5am-6amBringing Home
the Babies
SKY1
8pmHawaii Five-0 9pmMad
Dogs 10pmLaureus World Sports
Awards 2012: Coverage of the
ceremony in London. 11pmStella
12amNCIS: Los Angeles 1am
Dog the Bounty Hunter 2am
Fringe 3.05amRoad Wars
4.20amLion Man 5.10am-6am
Dont Forget the Lyrics
BBC2 ITV1 CHANNEL4 CHANNEL5
S
A
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E
L
L
I
T
E
&
C
A
B
L
E
TVPICK
6pmBBC News
6.30pmBBC London News
7pmThe One Show
7.30pmEastEnders: BBC News
8pmCHOICE Super Smart
Animals
9pmInside Men
10pmBBC News 10.25pm
Regional News 10.35pmQuestion
Time 11.35pmThis Week 12.20am
Skiing Weatherview12.25amSign
Zone: Hunting the Internet Bullies
Panorama 12.55amSign Zone:
Countryfile 1.55amSign Zone:
Britains Killer Roads 2.40amSign
Zone: Rip Off Britain 3.10amSign
Zone: Hairy Bikers Best of British
3.55am-6amBBC News
6pmEggheads
6.30pmBritains Heritage
Heroes
7pmTop Gear: Chinas
expanding car industry.
8pmRaymond Blanc: The Very
Hungry Frenchman
9pmPutin, Russia & the West
10pmJames Mays Things You
Need to Know
10.30pmNewsnight: Weather
11.20pmToughest Place to Be
a Fisherman
12.20amAn Island Parish
12.50amAn Island Parish
1.20amBBC News 3.25amClose
4am-6amBBC Learning Zone
6pmLondon Tonight
6.30pmITV News
7pmEmmerdale
7.30pmThe Cost of Going
Green: Tonight
8pmEmmerdale
8.30pmCHOICE Coronation
Street
9pmEternal Law
10pmITV News at Ten
10.30pmLondon News
10.35pmThe Jonathan Ross Show
11.35pmTake Me Out 12.40am
The Zone; ITV News Headlines
2.40amThe Cost of Going Green:
Tonight 3.05amITV Nightscreen
4.35am-5.30amThe Jeremy Kyle
Show
6pmThe Simpsons 6.30pm
Hollyoaks 6.55pm4thought.tv
7pmChannel 4 News
7.55pmChannel 4 Presents
2012: Helen Turner
8pmLocation, Location,
Location
9pmThe Restoration Man
10pmMotherTruckers 11.05pm
Coppers 12.05amRandom Acts
12.10amParty Paramedics 1.10am
Goks Teens: The Naked Truth
2.05amWhats Fufu? 2.10am
Confessions from the Underground
3.05amLove Tube 3.10amLast
Train 3.15amMy Dream Farm
4.10amThe Herd 4.15amTime
Team5.10am-5.55amCountdown
6pmHome and Away
6.30pm5 News at 6.30
7pmCHOICE Holiday Heaven
on Earth
7.30pmHow Do They Do It?:
5 News Update
8pmBermuda Triangle: The
Mystery Revealed: 5 News at 9
9pmWinter Road Rescue
10pmFILMSudden Impact.
1983.
12.25amSuperCasino
4amHouse Doctor 4.25am
Wildlife SOS 4.50amWildlife SOS
5.10amMichaelas Wild Challenge
5.35am-6amMichaelas Wild
Challenge
1 2 3 4 5 6
7
8 9
10 11 12
13 14
15 16 17
18 19 20
21 22 23 24
25
26
27
22 20
30 25
17 9
21 10 4
12 39
27
21 13
9 3 14
24 18
23 29
7 19
16
13
35
33
27
3
13
19
24
11
41
10
11
10
17
14
28
32
15
10
34
Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
4 Emblem (5)
7 One more (7)
8 Liturgical vestment
worn by priests (3)
10 Held back, as
of breath (5)
12 Artists tripod (5)
13 Domesticated
bovine animals (4)
15 Destruction
of tissue by
freezing (9)
19 Sharpen (a
blade) (4)
21 Blackbird (5)
24 Landed estate
of a lord (5)
25 School organisation
for families and
staf (inits) (3)
26 Goat-like
antelope (7)
27 Arctic canoe (5)
DOWN
1 Jewish spiritual leader (5)
2 Physician (6)
3 Shelters from light (6)
4 Scottish hillside (4)
5 Slang term for
ngerprints (4)
6 Before due time (5)
9 Thin plate or layer
of bone (6)
11 Guided anti-ship
missile (6)
14 To the ___ degree
(to the utmost) (3)
16 Former name of
Mumbai (6)
17 Band of tissue connecting
a muscle to bone (6)
18 Coin equal to one
hundredth of a rouble (5)
20 Get up (5)
22 Neuter (a female cat,
for example) (4)
23 Be without (4)
E
R
R
S
E P
V
D
E

4
4
B R U T A L R M
I I E N C O R E
D A M P E N E L
E T S M U D G E
T A B O O A E E
R E V E R S E
P I I C A R E T
A M E N D S T O
N F P A I N E D
D E L P H I R D
A Y T H E O R Y
5 1 9 8 6 9 3
9 4 8 3 1 2 7 6 5
2 4 1 4 9 8
8 7 9 6 1 8 7 9
2 3 6 7 1 3 2
2 3 5 1 4
2 5 1 9 2 3 9
7 9 6 4 8 1 2 6
8 9 3 7 9 6
6 7 3 2 9 4 5 1 8
1 3 1 7 3 4 9
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
RASPBERRY
Lifestyle | TV&Games
CITYA.M. 9 FEBRUARY 2012 28
LON GD ONCE FIX AM...........1743.00 23.00
SILVER LDN FIX AM ..................33.95 0.11
MAPLE LEAF 1 OZ ....................36.45 -0.32
LON PLATINUM AM................1649.00 26.00
LON PALLADIUM AM...............706.00 4.00
ALUMINIUM CASH .................2172.00 -3.00
COPPER CASH ......................8335.00 -127.00
LEAD CASH...........................2125.00 -40.00
NICKEL CASH......................21295.00 195.00
TIN CASH.............................24200.00 -170.00
ZINC CASH ............................2081.50 -38.00
BRENT SPOT INDEX................114.87 1.63
SOYA .....................................1232.00 -1.00
COCOA..................................2273.00 10.00
COFFEE...................................220.95 2.15
KRUG.....................................1812.60 24.40
WHEAT ....................................167.85 -1.65
AIR LIQUIDE........................................97.14 -0.63 100.65 80.90
ALLIANZ..............................................89.13 0.21 108.85 56.16
ANHEUS-BUSCH INBEV ....................48.76 -0.19 49.02 33.85
ARCELORMITTAL...............................17.40 0.71 28.55 10.47
AXA......................................................12.66 -0.01 16.16 7.88
BANCO SANTANDER...........................6.52 -0.02 9.00 4.94
BASF SE..............................................60.56 -0.31 70.22 42.19
BAYER.................................................54.44 -0.59 59.44 35.36
BBVA......................................................7.22 -0.03 9.17 4.94
BMW ....................................................69.00 -0.36 73.85 43.49
BNP PARIBAS.....................................36.15 0.42 59.93 22.72
CARREFOUR ......................................18.31 0.09 31.64 14.66
CRH PLC .............................................15.40 -0.34 17.40 10.28
DAIMLER.............................................44.62 -0.02 57.22 29.02
DANONE..............................................48.59 -0.28 53.16 41.92
DEU.BOERSE OFFRE ........................48.50 0.00 55.75 35.46
DEUTSCHE BANK..............................34.47 0.52 48.70 20.79
DEUTSCHE TELEKOM.........................8.90 0.02 11.38 7.88
E.ON.....................................................17.00 -0.20 25.00 12.50
ENEL......................................................3.28 0.17 4.86 2.78
ENI .......................................................17.15 -0.04 18.66 11.83
FRANCE TELECOM............................11.59 -0.06 16.65 11.09
GDF SUEZ ...........................................21.32 -0.03 30.05 17.65
GENERALI ASS...................................12.12 -0.10 17.05 10.34
IBERDROLA..........................................4.70 0.02 6.10 4.16
INDITEX ...............................................67.58 0.16 69.40 50.92
ING GROEP CVA...................................7.26 -0.08 9.50 4.21
INTESA SANPAOLO.............................1.60 0.05 2.47 0.85
KON.PHILIPS ELECTR.......................15.74 -0.11 24.12 12.01
L'OREAL..............................................81.60 -0.65 91.24 68.83
LVMH..................................................123.70 -1.60 132.65 94.16
MUNICH RE.......................................107.75 0.15 126.00 77.80
NOKIA....................................................3.89 0.00 8.49 3.33
REPSOL YPF.......................................20.69 0.11 24.90 17.31
RWE.....................................................32.52 0.16 53.79 21.15
SAINT-GOBAIN...................................35.45 -0.12 47.64 26.07
SANOFI ................................................55.57 -0.96 57.42 42.85
SAP......................................................47.84 -0.16 48.43 32.88
SCHNEIDER ELECTRIC.....................47.90 -0.25 61.83 35.00
SIEMENS .............................................76.00 0.14 99.39 62.13
SOCIETE GENERALE.........................23.85 0.01 52.70 14.32
TELECOM ITALIA..................................0.82 0.01 1.16 0.70
TELEFONICA ......................................13.33 -0.05 18.75 12.50
TOTAL..................................................40.87 -0.07 44.55 29.40
UNIBAIL-RODAMCO SE...................144.90 0.00 162.95 123.30
UNICREDIT............................................4.48 0.10 13.34 2.20
UNILEVER CVA...................................25.06 -0.37 27.16 20.90
VINCI ....................................................37.79 0.96 45.48 28.46
VIVENDI ...............................................16.40 0.21 21.68 14.10
VOLKSWAGEN VORZ ......................141.60 -0.15 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5875.93 -14.33 -0.24
FTSE 250 INDEX. . . . . . . . 11161.88 -31.82 -0.28
FTSE UK ALL SHARE . . . . 3034.15 -7.42 -0.24
FTSE AIMALL SH . . . . . . . . 781.60 0.62 0.08
DOWJONES INDUS 30 . . 12883.95 5.75 0.04
S&P 500 . . . . . . . . . . . . . . . 1349.96 2.91 0.22
NASDAQ COMPOSITE . . . 2915.86 11.78 0.41
FTSEUROFIRST 300 . . . . . 1070.84 -1.95 -0.18
NIKKEI 225 . . . . . . . . . . . . . 9015.59 98.07 1.10
DAX 30 PERFORMANCE. . 6748.76 -5.44 -0.08
CAC 40 . . . . . . . . . . . . . . . . 3410.00 -1.54 -0.05
SHANGHAI SE INDEX . . . . 2347.53 55.63 2.43
HANG SENG. . . . . . . . . . . 21018.46 319.27 1.54
S&P/ASX 20 INDEX . . . . . . 2573.90 0.00 0.00
ASX ALL ORDINARIES . . . 4363.70 0.00 0.00
BOVESPA SAO PAOLO. . 65831.16 -85.86 -0.13
ISEQ OVERALL INDEX . . . 3106.85 -17.25 -0.55
STRAITS TIMES . . . . . . . . . 2904.76 -1.93 -0.07
IGBM. . . . . . . . . . . . . . . . . . . 890.85 -0.51 -0.06
SWISS MARKET INDEX. . . 6155.86 -1.73 -0.03
Price Chg %chg
3M........................................................87.97 0.08 98.19 68.63
ABBOTT LABS ...................................55.57 -0.14 56.84 45.28
ALCOA ................................................10.67 0.00 18.47 8.45
ALTRIA GROUP..................................28.84 0.02 30.40 23.20
AMAZON.COM..................................185.48 1.29 246.71 160.59
AMERICAN EXPRESS........................51.64 -0.49 53.80 41.30
AMGEN INC.........................................68.06 -1.11 70.00 47.66
APPLE...............................................476.68 7.85 476.79 310.50
AT&T....................................................30.02 -0.02 31.94 27.27
BANK OF AMERICA.............................8.13 0.28 14.95 4.92
BERKSHIRE HATAW B.......................79.66 -0.22 87.65 65.35
BOEING CO.........................................75.46 0.26 80.65 56.01
CATERPILLAR..................................114.04 0.23 116.55 67.54
CHEVRON.........................................106.76 -0.07 110.99 86.68
CISCO SYSTEMS................................20.43 0.23 22.34 13.30
CITIGROUP.........................................34.23 1.16 49.60 21.40
COCA-COLA.......................................68.33 -0.22 71.77 61.29
COMCAST CLASS A..........................27.25 0.16 27.29 19.19
CONOCOPHILLIPS.............................72.25 0.33 81.80 58.65
CVS/CAREMARK................................43.57 0.49 44.09 31.30
DU PONT(EI) DE NMR........................51.65 0.04 57.00 37.10
EXXON MOBIL....................................85.32 -1.02 88.23 63.47
GENERAL ELECTRIC.........................19.24 0.06 21.65 14.02
GOLDMAN SACHS GRP ..................116.15 0.17 169.90 84.27
GOOGLE A........................................609.85 3.08 670.25 473.02
HEWLETT PACKARD.........................29.46 0.51 49.39 19.92
HOME DEPOT.....................................45.17 -0.29 45.58 28.13
IBM.....................................................192.95 -0.40 194.90 151.71
INTEL CORP .......................................26.85 0.21 27.00 19.16
J.P.MORGAN CHASE.........................38.30 0.43 48.36 27.85
JOHNSON & JOHNSON.....................65.24 -0.02 68.05 55.76
KRAFT FOODS A................................38.54 0.03 39.06 24.30
MC DONALD'S CORP ......................100.05 -0.86 102.22 72.89
MERCK AND CO. NEW......................38.42 -0.21 39.43 29.47
MICROSOFT........................................30.66 0.31 30.67 23.65
OCCID. PETROLEUM.......................103.80 -1.04 117.89 66.36
ORACLE CORP...................................28.73 -0.22 36.50 24.72
PEPSICO.............................................66.74 -0.02 71.89 58.50
PFIZER ................................................21.01 -0.04 22.17 16.63
PHILIP MORRIS INTL .........................77.88 0.28 79.96 58.46
PROCTER AND GAMBLE ..................63.64 -0.06 67.72 56.57
QUALCOMM INC ................................61.47 -0.08 61.95 45.98
SCHLUMBERGER ..............................78.41 -1.09 95.64 54.79
TRAVELERS CIES..............................59.85 0.11 64.17 45.97
UNITED TECHNOLOGIE ....................81.74 1.46 91.83 66.87
VERIZON COMMS ..............................37.92 0.00 40.48 32.28
VISA CL A..........................................108.35 1.37 108.64 70.45
WAL-MART STORES..........................61.62 -0.07 62.63 48.31
WALT DISNEY CO ..............................41.27 0.29 44.34 28.19
WELLS FARGO & CO.........................30.63 0.37 34.25 22.58
COMMODITIES CREDIT & RATES
BoE IR Overnight ............................0.500 0.00
BoE IR 7 days.................................0.500 0.00
BoE IR 1 month ..............................0.500 0.00
BoE IR 3 months ............................0.500 0.00
BoE IR 6 months ............................0.500 0.00
LIBOR Euro - overnight ..................0.281 0.00
LIBOR Euro - 12 months ................1.685 -0.01
LIBOR USD - overnight...................0.142 0.00
LIBOR USD - 12 months.................1.076 0.00
HaIifax mortgage rate .....................3.990 -0.02
Euro Base Rate ...............................1.500 0.00
Finance house base rate................1.500 0.00
US Fed funds...................................0.250 0.00
US Iong bond yieId .........................3.140 -0.03
European repo rate.........................0.226 0.00
Euro Euribor ....................................0.379 0.00
The vix index ...................................18.22 0.57
The baItic dry index ........................660.0 12.0
Markit iBoxx...................................240.16 -1.37
Markit iTraxx..................................127.96 0.36
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
BAE Systems . . . . . .314.1 -3.7 356.5 248.1
Chemring Group . . . .418.7 2.2 736.5 368.8
Cobham . . . . . . . . . . .189.5 1.1 236.5 165.9
Meggitt . . . . . . . . . . . .364.8 -3.6 397.6 304.9
QinetiQ Group . . . . . .139.2 1.7 139.3 101.5
RoIIs-Royce HoIdi . . .785.0 -1.5 787.0 557.5
Senior . . . . . . . . . . . . .184.5 0.0 190.6 132.6
UItra EIectronics . . .1591.0 3.0 1830.0 1305.0
GKN . . . . . . . . . . . . . .219.1 -2.4 245.0 157.0
BarcIays . . . . . . . . . . .233.6 -3.2 333.6 138.9
HSBC HoIdings . . . . .565.5 3.5 730.9 463.5
LIoyds Banking Gr . . .35.8 0.5 69.3 21.8
RoyaI Bank of Sco . . .28.8 -0.0 49.0 17.3
Standard Chartere .1597.0 6.0 1712.5 1169.5
AG Barr . . . . . . . . . .1245.0 -15.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .370.2 2.5 449.2 289.9
Diageo . . . . . . . . . . .1461.5 -12.5 1484.0 1112.0
SABMiIIer . . . . . . . . .2507.0 10.0 2526.5 1979.0
AZ EIectronic Mat . . .309.4 -0.8 338.1 206.1
Croda Internation . .2043.0 41.0 2081.0 1456.0
EIementis . . . . . . . . . .162.3 -0.1 187.4 107.5
Johnson Matthey . .2257.0 12.0 2279.0 1523.0
Victrex . . . . . . . . . . .1314.0 -33.0 1590.0 1025.0
YuIe Catto & Co . . . . .205.1 6.1 253.0 148.0
C/$ 1.3263 0.0003
C/ 0.8383 0.0043
C/ 102.23 0.4010
/C 1.1928 0.0061
/$ 1.5820 0.0076
/ 121.95 0.1440
FTSE 100
5875.93
14.33
FTSE 250
11161.88
31.82
FTSE ALLSHARE
3034.15
7.42
DOW
12883.95
5.75
NASDAQ
2915.86
11.78
S&P 500
1349.96
2.91
Smith (DS) . . . . . . . . .165.8 5.3 183.4 113.3
Smiths Group . . . . .1015.0 18.0 1429.0 869.5
Brown (N.) Group . . .248.0 3.6 304.5 227.0
Carpetright . . . . . . . . .577.5 -22.5 770.5 375.0
Debenhams . . . . . . . . .68.7 -1.3 74.8 51.2
Dignity . . . . . . . . . . . .778.0 -3.0 854.5 648.5
Dixons RetaiI . . . . . . .14.9 -0.2 22.3 9.4
DuneImGroup . . . . . .488.0 18.1 524.5 383.9
HaIfords Group . . . . .325.0 -4.7 411.4 268.6
Home RetaiI Group . .110.1 -1.8 235.0 72.5
Inchcape . . . . . . . . . .360.1 3.3 425.4 268.1
JD Sports Fashion . .819.0 20.0 1030.0 570.0
Kesa EIectricaIs . . . . .80.4 10.1 151.4 60.2
Kingfisher . . . . . . . . .268.7 -2.3 287.1 217.0
Marks & Spencer G . .345.6 -0.7 402.2 301.8
Next . . . . . . . . . . . . .2722.0 -33.0 2810.0 1868.0
Sports Direct Int . . . .256.4 -1.2 266.2 159.0
WH Smith . . . . . . . . . .515.0 -16.5 559.0 433.8
Smith & Nephew . . . .638.0 -1.5 742.0 521.0
Synergy HeaIth . . . . .846.5 -18.5 981.0 808.0
Barratt DeveIopme . .118.6 -0.7 120.4 67.5
BeIIway . . . . . . . . . . . .776.0 -9.5 792.0 540.5
BerkeIey Group Ho .1287.0 4.0 1360.0 945.5
BaIfour Beatty . . . . . .283.6 -0.5 357.3 214.6
CRH . . . . . . . . . . . . .1292.0 -27.0 1700.0 1053.0
GaIIiford Try . . . . . . . .483.0 -5.5 530.0 332.8
Kier Group . . . . . . . .1417.0 -7.0 1458.0 1097.0
Drax Group . . . . . . . .516.0 -11.5 581.5 371.9
SSE . . . . . . . . . . . . . .1250.0 -8.0 1423.0 1166.0
Domino Printing S . .608.0 -0.5 705.0 434.3
HaIma . . . . . . . . . . . . .373.9 2.9 429.6 306.3
Laird . . . . . . . . . . . . . .166.5 -1.5 207.0 127.9
Morgan CrucibIe C . .327.3 8.2 357.1 224.0
Oxford Instrument .1023.0 -22.0 1083.0 600.5
Renishaw . . . . . . . . .1490.0 15.0 1886.0 800.0
Spectris . . . . . . . . . .1598.0 22.0 1679.0 1039.0
Aberforth SmaIIer . . .605.0 -3.0 714.0 494.0
AIIiance Trust . . . . . .365.0 1.8 392.7 310.2
Bankers Inv Trust . . .402.7 -3.5 428.0 346.5
BH GIobaI Ltd. GB .1168.0 -1.0 1212.0 1058.0
BH GIobaI Ltd. US . . . .11.7 -0.0 12.2 10.4
BH Macro Ltd. EUR . . .19.5 -0.2 20.2 16.3
BH Macro Ltd. GBP 2035.0 10.0 2078.0 1661.0
BH Macro Ltd. USD . . .19.5 0.0 20.2 16.2
BIackRock WorId M .740.5 9.0 815.5 574.5
BIueCrest AIIBIue . . .161.0 0.4 176.2 160.1
British Assets Tr . . . .127.0 0.0 139.5 109.0
British Empire Se . . .447.2 -1.8 533.0 404.0
CaIedonia Investm .1490.0 -14.0 1816.0 1337.0
City of London In . . .293.1 -1.4 306.9 257.0
Dexion AbsoIute L . .140.2 0.2 151.0 130.0
Edinburgh Dragon . .243.1 1.9 252.0 201.4
Edinburgh Inv Tru . . .474.8 -3.6 492.2 414.9
EIectra Private E . . .1600.0 30.0 1755.0 1287.0
F&C Inv Trust . . . . . .305.5 0.6 327.9 261.5
FideIity China Sp . . . . .82.6 1.4 114.3 70.0
FideIity European . .1094.0 -1.0 1287.0 912.0
HeraId Inv Trust . . . . .504.0 1.0 545.5 419.0
HICL Infrastructu . . . .119.3 0.9 121.3 112.7
Impax Environment . .99.8 -0.2 125.4 88.5
John Laing Infras . . .110.0 0.3 110.2 103.4
JPMorgan American .906.0 0.5 924.0 721.5
JPMorgan Asian In . .200.9 2.9 244.0 170.1
JPMorgan Emerging .564.0 -4.0 610.5 480.1
JPMorgan European .716.0 -1.5 983.5 624.0
JPMorgan Indian I . . .381.1 -2.8 459.0 313.1
JPMorgan Russian .560.0 -2.5 741.0 415.1
Law Debenture Cor . .367.1 1.8 385.0 321.0
MercantiIe Inv Tr . . . .983.0 8.5 1137.0 823.0
Merchants Trust . . . .381.0 0.0 431.8 341.5
Monks Inv Trust . . . .331.0 2.0 367.9 298.1
Murray Income Tru . .649.0 -2.5 673.0 568.0
Murray Internatio . . .961.0 0.0 991.5 818.5
PerpetuaI Income . . .262.0 -2.0 276.0 236.5
PersonaI Assets T .34200.0-190.0 34390.030210.0
PoIar Cap TechnoI . .361.6 1.2 391.2 299.5
RIT CapitaI Partn . . .1225.0 -10.0 1360.0 1173.0
Scottish Inv Trus . . . .479.7 -1.5 524.0 417.0
Scottish Mortgage . .675.0 -4.5 781.0 565.0
SVG CapitaI . . . . . . . .238.0 0.0 279.8 165.1
TempIe Bar Inv Tr . . .905.0 -6.0 952.0 791.0
TempIeton Emergin .622.0 3.5 684.5 497.0
TR Property Inv T . . .156.0 0.2 206.1 136.2
TR Property Inv T . . . .68.8 0.4 94.0 59.8
Witan Inv Trust . . . . .484.7 0.7 533.0 401.5
3i Group . . . . . . . . . . .199.6 -1.5 317.0 166.9
3i Infrastructure . . . .121.8 0.0 124.0 113.4
Aberdeen Asset Ma .254.2 2.7 254.3 167.8
Ashmore Group . . . .390.4 7.1 420.0 301.5
Brewin DoIphin Ho . .152.2 -1.2 185.4 113.7
CameIIia . . . . . . . . . .9718.0-172.010950.08800.0
CharIes TayIor Co . . .123.0 -4.3 165.0 115.6
City of London Gr . . . .66.0 0.0 93.6 61.3
City of London In . . .352.5 -2.5 448.0 304.3
CIose Brothers Gr . . .702.5 0.0 875.0 590.0
CoIIins Stewart H . . . .96.0 1.5 96.5 48.5
F&C Asset Managem .67.6 0.2 90.0 56.1
Hargreaves Lansdo .460.0 -0.4 646.5 402.5
HeIphire Group . . . . . . .2.1 -0.2 17.4 1.4
Henderson Group . . .124.8 3.8 173.1 95.1
Highway CapitaI . . . . .13.0 0.0 21.0 6.5
ICAP . . . . . . . . . . . . . .389.0 -1.3 554.5 311.6
IG Group HoIdings . .476.5 -16.0 502.5 393.6
Intermediate Capi . . .287.8 -4.1 354.6 197.9
InternationaI Per . . . .214.6 3.2 388.8 148.5
InternationaI Pub . . .120.7 -0.2 121.5 108.6
Investec . . . . . . . . . . .391.5 -0.5 522.0 318.4
IP Group . . . . . . . . . . .101.8 0.0 103.0 36.0
Jupiter Fund Mana . .243.7 3.7 337.3 184.9
Liontrust Asset M . . . .89.9 0.0 91.4 57.9
LMS CapitaI . . . . . . . . .56.0 -1.0 64.8 53.5
London Finance & . . .22.5 0.0 23.5 19.0
London Stock Exch .936.5 -2.0 1076.0 756.5
Lonrho . . . . . . . . . . . . .10.5 0.0 19.8 8.9
Man Group . . . . . . . . .137.0 1.9 309.0 104.5
Paragon Group Of . .184.2 -2.4 206.1 134.6
Provident Financi . . .970.0 -18.0 1124.0 915.0
Rathbone Brothers .1208.0 2.0 1257.0 977.0
Record . . . . . . . . . . . . .11.6 0.0 35.5 11.4
RSM Tenon Group . . . .6.0 -0.3 55.5 5.8
Schroders . . . . . . . .1610.0 5.0 1906.0 1183.0
Schroders (Non-Vo .1282.0 9.0 1554.0 970.0
TuIIett Prebon . . . . . .323.6 1.6 428.6 262.3
WaIker Crips Grou . . .40.0 0.0 51.5 39.0
BT Group . . . . . . . . . .212.7 -2.4 216.8 161.0
CabIe & WireIess . . . .43.8 -1.2 51.2 31.3
CabIe & WireIess . . . .20.1 -0.2 76.9 14.2
COLT Group SA . . . . .91.9 0.0 156.2 84.1
KCOM Group . . . . . . . .73.0 -0.3 84.0 57.5
TaIkTaIk TeIecom . . .131.0 -0.5 154.0 118.9
TeIecomPIus . . . . . . .636.5 -7.0 802.0 440.0
Booker Group . . . . . . .75.6 0.3 80.0 54.5
Greggs . . . . . . . . . . . .537.5 -2.5 550.5 445.0
Morrison (Wm) Sup .291.6 -1.4 328.0 268.5
Ocado Group . . . . . . .111.3 5.9 285.0 52.9
Sainsbury (J) . . . . . . .294.5 0.1 391.2 263.5
Tesco . . . . . . . . . . . . .329.4 -0.2 420.1 312.4
Associated Britis . . .1179.0 -2.0 1188.1 940.0
Cranswick . . . . . . . . .833.0 -8.0 862.0 588.5
Dairy Crest Group . . .325.3 -2.4 409.7 311.0
Devro . . . . . . . . . . . . .277.4 1.4 296.9 228.0
Tate & LyIe . . . . . . . . .695.0 4.5 720.5 520.0
UniIever . . . . . . . . . .2029.0 -13.0 2189.0 1793.0
Mondi . . . . . . . . . . . . .532.0 4.5 664.0 413.5
Centrica . . . . . . . . . . .294.5 -8.2 345.8 278.8
InternationaI Pow . . .333.0 -9.7 420.8 279.4
NationaI Grid . . . . . . .647.0 3.0 649.5 543.5
Pennon Group . . . . . .687.0 -6.5 737.5 584.5
Severn Trent . . . . . .1518.0 -4.0 1600.0 1375.0
United UtiIities . . . . .601.0 -5.0 637.0 551.0
Cookson Group . . . . .602.5 0.5 724.5 395.8
Rexam . . . . . . . . . . . .378.9 -2.4 400.0 299.8
RPC Group . . . . . . . .385.2 -6.8 393.2 231.5
Price Chg High Low
Bovis Homes Group .484.6 -5.5 499.6 326.5
Persimmon . . . . . . . .546.0 -14.5 560.5 374.0
Reckitt Benckiser . .3479.0 97.0 3578.0 3015.0
Redrow . . . . . . . . . . . .130.0 0.3 136.2 103.5
TayIor Wimpey . . . . . . .44.0 -0.6 45.0 28.7
Bodycote . . . . . . . . . .328.7 1.2 397.7 225.6
Fenner . . . . . . . . . . . .457.2 -0.8 465.8 280.0
IMI . . . . . . . . . . . . . . . .913.5 -2.0 1119.0 636.5
MeIrose . . . . . . . . . . .370.0 -1.6 388.0 268.0
Northgate . . . . . . . . . .247.4 1.4 346.7 190.9
Rotork . . . . . . . . . . .1901.0 -14.0 1979.0 1501.0
Spirax-Sarco Engi . .2014.0 -35.0 2089.0 1649.0
Weir Group . . . . . . .1984.0 -66.0 2218.0 1375.0
Evraz . . . . . . . . . . . . .442.0 -3.0 460.5 315.0
Ferrexpo . . . . . . . . . . .361.0 2.3 499.0 238.7
TaIvivaara Mining . . .339.5 -4.1 622.0 195.2
BBAAviation . . . . . . .188.1 3.0 240.8 156.0
Stobart Group Ltd . . .128.5 0.5 163.6 112.0
AdmiraI Group . . . . . .964.5 -8.5 1754.0 787.0
AmIin . . . . . . . . . . . . .353.0 -2.2 427.0 270.6
BeazIey . . . . . . . . . . . .146.4 -0.2 147.5 109.6
Informa . . . . . . . . . . . .410.9 -3.6 461.1 313.9
ITE Group . . . . . . . . . .231.0 1.0 258.2 157.7
ITV . . . . . . . . . . . . . . . . .77.7 0.3 93.5 51.7
Johnston Press . . . . . . .6.0 -0.1 12.8 4.1
MecomGroup . . . . . .202.5 -4.3 310.0 134.5
Moneysupermarket. .116.4 -2.4 123.2 84.8
Pearson . . . . . . . . . .1183.0 -18.0 1255.0 1013.0
PerformGroup . . . . .265.0 8.0 270.0 150.0
Reed EIsevier . . . . . .526.5 -4.5 590.5 461.3
Rightmove . . . . . . . .1299.0 -24.0 1408.0 857.0
STV Group . . . . . . . . . .92.5 -0.3 168.0 76.3
Tarsus Group . . . . . .146.0 -2.3 165.0 119.5
Trinity Mirror . . . . . . . .47.3 -0.8 89.5 37.5
UBM . . . . . . . . . . . . . .568.5 -15.0 725.0 416.0
UTV Media . . . . . . . . .120.3 0.3 150.0 92.5
WiImington Group . . .84.3 0.5 180.0 78.5
WPP . . . . . . . . . . . . . .786.5 -2.5 846.5 578.0
YeII Group . . . . . . . . . . .5.9 0.1 11.0 3.4
African Barrick G . . .524.0 1.5 616.5 393.5
AIIied GoId Minin . . .139.5 0.9 281.3 34.4
AngIo American . . .2862.0 -11.0 3437.0 2138.5
AngIo Pacific Gro . . .312.2 -2.5 369.3 237.9
Antofagasta . . . . . . .1326.0 -9.0 1513.0 900.5
Aquarius PIatinum . .162.5 -7.5 419.0 149.0
BHP BiIIiton . . . . . . .2130.0 -50.0 2631.5 1667.0
CatIin Group Ltd. . . .426.4 1.3 428.0 334.0
Hiscox Ltd. . . . . . . . . .403.3 -1.4 424.7 340.5
Jardine LIoyd Tho . . .677.5 -9.5 764.5 576.0
Lancashire HoIdin . . .737.0 2.5 774.5 532.5
RSA Insurance Gro . .112.6 -0.1 143.5 99.6
Aviva . . . . . . . . . . . . . .370.9 -3.7 477.9 275.3
LegaI & GeneraI G . . .120.5 -0.1 123.8 89.8
OId MutuaI . . . . . . . . .157.2 2.6 158.5 98.1
Phoenix Group HoI . .579.0 1.0 688.0 451.1
PrudentiaI . . . . . . . . .728.0 -0.5 777.0 509.0
ResoIution Ltd. . . . . .274.0 -1.3 316.1 229.5
St James's PIace . . . .370.1 0.1 376.0 294.0
Standard Life . . . . . . .228.0 0.1 244.7 172.0
4Imprint Group . . . . .253.0 -2.0 295.0 200.0
Aegis Group . . . . . . .165.5 0.4 167.7 115.7
BIoomsbury PubIis . .112.5 1.5 138.0 91.3
British Sky Broad . . .692.0 -7.5 850.0 618.5
Centaur Media . . . . . . .37.5 -1.3 73.0 32.5
Chime Communicati .234.0 3.0 298.5 163.0
Creston . . . . . . . . . . . .55.0 -1.0 121.0 47.0
DaiIy MaiI and Ge . . .444.3 -18.1 594.5 343.4
Euromoney Institu . .738.0 3.0 741.5 522.5
Future . . . . . . . . . . . . . .12.5 0.5 30.0 8.3
Haynes PubIishing . .195.0 0.0 257.0 190.0
Huntsworth . . . . . . . . .41.0 -1.5 81.0 32.3
Bumi . . . . . . . . . . . . . .750.0 -2.41 780.0 740.5
Centamin (DI) . . . . . . . .98.0 1.8 154.2 78.5
Eurasian NaturaI . . .700.5 -2.5 1029.0 522.0
FresniIIo . . . . . . . . . .1797.0 -4.0 2150.0 1302.0
GemDiamonds Ltd. .230.0 -0.4 306.0 179.8
GIencore Internat . . .434.5 -8.8 531.1 348.0
HochschiId Mining . .520.5 0.0 680.0 365.9
Kazakhmys . . . . . . .1165.0 5.0 1622.0 730.0
Kenmare Resources . .50.3 0.8 59.9 31.0
Lonmin . . . . . . . . . . .1051.0 -8.0 1880.0 941.0
New WorId Resourc .533.5 10.5 1060.0 409.4
PetropavIovsk . . . . . .754.0 -20.0 1090.0 543.5
PoIymetaI Interna . .1140.0 -16.0 1175.0 877.0
RandgoId Resource 7245.0 -50.0 7565.0 4425.0
Rio Tinto . . . . . . . . .3873.5 4.0 4712.0 2712.5
Vedanta Resources 1281.0 -16.0 2518.0 928.0
Xstrata . . . . . . . . . . .1198.0 -2.0 1550.0 764.0
Inmarsat . . . . . . . . . . .455.2 18.0 719.5 389.3
Vodafone Group . . . .173.6 -1.4 182.8 155.1
Genesis Emerging . .506.0 -1.5 548.5 424.0
Afren . . . . . . . . . . . . . .129.1 -0.6 171.2 73.6
BG Group . . . . . . . . .1446.0 -18.5 1564.5 1144.0
BP . . . . . . . . . . . . . . . .489.8 3.3 497.5 363.2
Cairn Energy . . . . . . .348.6 -8.0 531.8 291.9
EnQuest . . . . . . . . . . .117.0 3.7 158.5 85.7
Essar Energy . . . . . .135.8 3.1 528.0 120.0
ExiIIon Energy . . . . . .267.0 6.3 469.7 184.2
Heritage OiI . . . . . . . .193.3 -0.4 332.2 160.0
Ophir Energy . . . . . . .338.6 6.6 349.9 184.5
Premier OiI . . . . . . . . .419.9 -0.4 521.0 310.0
RoyaI Dutch SheII . .2287.5 5.0 2402.0 1883.5
RoyaI Dutch SheII . .2327.0 9.0 2489.0 1890.5
SaIamander Energy .234.9 1.7 317.6 182.3
Soco Internationa . . .308.1 -2.6 400.0 278.0
TuIIow OiI . . . . . . . . .1483.0 17.0 1500.6 945.5
Amec . . . . . . . . . . . .1071.0 24.0 1210.0 740.5
Hunting . . . . . . . . . . .829.5 -10.0 845.5 530.0
Kentz Corporation . .474.0 -4.9 508.0 347.0
LampreII . . . . . . . . . . .321.1 -4.4 395.2 220.7
Petrofac Ltd. . . . . . .1471.0 -6.0 1603.0 1108.0
Wood Group (John) .684.0 5.0 715.8 469.9
Burberry Group . . . .1403.0 -17.0 1600.0 1092.0
PZ Cussons . . . . . . . .312.0 0.9 387.9 285.0
Supergroup . . . . . . . .579.5-120.5 1820.0 435.2
AstraZeneca . . . . . .3010.0 10.0 3194.0 2543.5
BTG . . . . . . . . . . . . . .340.5 -4.3 349.7 210.1
Genus . . . . . . . . . . . .1042.0 -16.0 1111.0 853.5
GIaxoSmithKIine . . .1392.5 -13.5 1497.0 1138.5
Hikma Pharmaceuti .725.5 4.0 869.0 555.5
Shire PIc . . . . . . . . . .2174.0 -5.0 2243.0 1656.0
CapitaI & Countie . . .195.5 1.3 203.7 142.8
Daejan HoIdings . . .2926.0 -29.0 3065.0 2282.0
F&C CommerciaI Pr .102.9 -1.0 108.0 92.6
Grainger . . . . . . . . . . .107.0 3.0 133.2 77.3
London & Stamford .111.0 -0.6 140.0 103.9
SaviIIs . . . . . . . . . . . . .351.9 1.9 427.1 256.2
UK CommerciaI Pro . .73.0 -2.8 85.5 65.1
Unite Group . . . . . . . .187.0 -0.5 224.1 152.9
Big YeIIow Group . . .289.9 -5.6 344.4 218.0
British Land Co . . . . .508.0 3.0 629.5 444.0
CapitaI Shopping . . .339.3 -2.1 408.6 288.7
Derwent London . . .1743.0 3.0 1880.0 1400.0
Great PortIand Es . . .370.4 2.5 445.0 312.9
Hammerson . . . . . . . .381.9 2.9 490.9 345.2
Hansteen HoIdings . . .74.3 -0.8 89.5 68.0
Land Securities G . . .680.5 0.5 885.0 612.0
SEGRO . . . . . . . . . . . .227.4 1.6 331.3 195.0
Shaftesbury . . . . . . . .511.5 -3.5 539.0 441.2
Aveva Group . . . . . .1718.0 -2.0 1799.0 1298.0
Computacenter . . . . .403.1 -5.0 490.0 324.7
Fidessa Group . . . . .1698.0 7.0 2109.0 1444.0
Invensys . . . . . . . . . . .216.7 1.9 357.8 180.9
Logica . . . . . . . . . . . . .81.8 -0.5 147.2 59.0
Micro Focus Inter . . .439.8 -5.2 455.0 242.9
Misys . . . . . . . . . . . . .298.5 -27.6 420.2 214.9
Sage Group . . . . . . . .295.6 -8.2 310.1 231.7
SDL . . . . . . . . . . . . . . .643.5 -4.5 711.5 586.0
TeIecity Group . . . . . .658.5 -6.0 667.5 450.5
Aggreko . . . . . . . . . .2148.0 -11.0 2162.0 1394.5
Ashtead Group . . . . .237.1 -6.5 252.3 99.4
Atkins (WS) . . . . . . . .723.5 -1.5 820.0 490.2
Babcock Internati . . .736.5 -2.5 758.0 542.0
Berendsen . . . . . . . . .457.2 -8.3 568.0 402.7
BunzI . . . . . . . . . . . . .869.0 -1.5 906.5 676.5
Cape . . . . . . . . . . . . . .430.5 -5.0 591.5 295.0
Capita . . . . . . . . . . . . .634.5 1.5 786.5 611.5
CariIIion . . . . . . . . . . .311.5 -2.6 403.2 281.0
De La Rue . . . . . . . . .967.5 -6.0 985.0 699.0
DipIoma . . . . . . . . . . .400.0 0.0 425.5 263.5
EIectrocomponents .234.6 3.1 294.9 182.2
Experian . . . . . . . . . . .916.5 0.5 921.0 665.0
FiItrona PLC . . . . . . . .375.5 -4.8 404.5 293.0
G4S . . . . . . . . . . . . . . .277.0 -0.7 291.0 219.9
Hays . . . . . . . . . . . . . . .80.2 -0.8 130.0 58.9
Homeserve . . . . . . . .240.1 -34.9 532.0 218.5
Howden Joinery Gr . .111.8 2.3 127.5 93.1
Interserve . . . . . . . . . .300.0 0.9 341.3 239.8
Intertek Group . . . . .2179.0 -17.0 2214.0 1738.0
MichaeI Page Inte . . .423.8 3.8 567.0 323.0
Mitie Group . . . . . . . .260.1 -0.9 271.0 195.9
PayPoint . . . . . . . . . . .564.0 -3.5 585.0 327.3
Premier FarneII . . . . .212.0 5.5 308.8 144.5
Regus . . . . . . . . . . . . .103.4 1.4 119.0 64.0
RentokiI InitiaI . . . . . . .76.4 -1.0 103.4 58.2
RPS Group . . . . . . . . .225.0 0.1 253.0 156.6
Serco Group . . . . . . .527.5 6.0 618.5 458.0
Shanks Group . . . . . .106.1 -1.1 130.9 90.8
SIG . . . . . . . . . . . . . . .104.9 -0.8 153.5 77.0
Travis Perkins . . . . . .931.5 -22.5 1090.0 715.0
WoIseIey . . . . . . . . .2231.0 -13.0 2299.0 1404.0
ARM HoIdings . . . . . .566.5 -1.5 651.0 464.0
CSR . . . . . . . . . . . . . .238.7 6.4 447.0 154.1
Imagination Techn . .616.0 -1.5 623.0 296.9
Spirent Communica .131.1 0.3 160.0 105.8
British American . .3082.5 -10.0 3109.5 2300.0
ImperiaI Tobacco . .2410.0 -18.0 2444.0 1878.0
Betfair Group . . . . . . .877.5 1.5 1030.0 567.0
Bwin.party Digita . . .169.6 -2.4 204.0 100.6
CarnivaI . . . . . . . . . .1980.0 -19.0 2983.0 1742.0
Compass Group . . . .625.0 -5.5 632.0 512.5
Domino's Pizza UK . .470.1 -5.5 546.0 377.0
easyJet . . . . . . . . . . . .460.0 -1.5 476.1 301.0
FirstGroup . . . . . . . . .306.5 -1.8 378.7 301.8
Go-Ahead Group . . .1297.0 -7.0 1598.0 1190.0
Greene King . . . . . . . .511.0 -4.0 521.5 410.0
InterContinentaI . . .1362.0 -1.0 1435.0 955.0
InternationaI Con . . .183.0 -1.1 268.1 132.0
JD Wetherspoon . . . .411.6 -7.7 468.3 380.5
Ladbrokes . . . . . . . . .146.0 0.3 155.3 114.0
Marston's . . . . . . . . . . .98.2 -0.1 112.0 84.6
MiIIennium& Copt . .464.6 -0.4 600.5 371.2
MitcheIIs & ButIe . . . .268.0 -0.1 348.7 215.6
NationaI Express . . .222.9 -1.2 270.2 201.6
Rank Group . . . . . . . .143.0 1.0 153.7 109.5
Restaurant Group . . .298.6 -0.4 335.0 254.9
Spirit Pub Compan . . .53.5 -0.3 55.0 35.3
Stagecoach Group . .270.0 -5.8 287.4 200.0
TUI TraveI . . . . . . . . . .200.6 -5.1 250.0 136.7
Whitbread . . . . . . . .1684.0 -12.0 1863.0 1409.0
WiIIiamHiII . . . . . . . . .230.0 0.4 244.1 176.8
Abcam . . . . . . . . . . . .335.0 -0.3 460.0 320.0
Advanced MedicaI . . .87.5 0.5 96.0 64.8
AIbemarIe & Bond . .352.0 -1.0 400.1 252.0
Amerisur Resource . .20.5 0.0 29.0 9.5
Andor TechnoIogy . .538.0 -7.0 685.0 387.1
ArchipeIago Resou . . .68.3 -1.8 79.0 55.5
ASOS . . . . . . . . . . . .1836.0 -60.0 2468.0 1142.0
AureIian OiI & Ga . . . .16.5 -0.3 92.0 16.0
Avanti Communicat .287.0 0.0 628.0 248.5
BIinkx . . . . . . . . . . . . . .67.5 -2.5 158.0 50.5
Borders & Souther . . .68.3 0.0 73.3 43.5
BowLeven . . . . . . . . . .78.5 -1.3 382.3 62.0
Brooks MacdonaId .1132.5 0.0 1372.5 940.0
CIuff GoId . . . . . . . . . . .96.0 3.8 125.8 66.5
Cove Energy . . . . . . .138.8 -1.3 140.8 61.0
Daisy Group . . . . . . .102.0 -1.5 127.0 88.0
EMIS Group . . . . . . . .430.0 2.5 580.0 397.5
Faroe PetroIeum . . . .168.3 3.5 192.8 130.0
GuIfsands PetroIe . . .171.8 1.8 342.0 142.5
GWPharmaceuticaI . .89.6 -0.4 130.0 78.5
H&T Group . . . . . . . . .322.5 -5.8 395.0 277.0
Hargreaves Servic .1170.0 -10.0 1180.0 855.0
HeaIthcare Locums . . . .3.9 -0.2 4.4 3.9
Immunodiagnostic . .389.0 7.3 1218.0 288.8
ImpeIIamGroup . . . .241.5 -1.5 387.5 210.0
Iomart Group . . . . . . .142.5 -1.5 144.5 85.5
James HaIstead . . . . .482.5 2.5 495.0 410.0
London Mining . . . . .296.0 1.8 436.5 257.5
Lupus CapitaI . . . . . .129.5 2.5 150.0 86.0
M. P. Evans Group . .453.0 7.5 475.0 371.0
Majestic Wine . . . . . .420.0 -2.0 510.0 315.0
May Gurney Integr . .295.0 2.5 302.0 234.0
Monitise . . . . . . . . . . . .34.5 -1.3 40.0 20.5
MuIberry Group . . . .1850.0 10.0 1920.0 1065.0
Nanoco Group . . . . . . .63.0 3.0 93.3 38.0
NauticaI PetroIeu . . .330.5 6.0 455.0 223.5
NichoIs . . . . . . . . . . . .604.0 -1.0 615.0 410.0
Numis Corporation . . .93.8 0.3 126.0 72.0
Pan African Resou . . .17.8 0.3 17.8 9.5
Patagonia GoId . . . . . .41.8 1.3 70.0 37.3
Prezzo . . . . . . . . . . . . .66.5 0.0 71.5 53.5
Pursuit Dynamics . . . .95.8 -1.5 410.0 67.0
Rockhopper ExpIor .346.0 11.8 367.5 141.0
RWS HoIdings . . . . . .462.0 1.0 481.6 329.8
Secure Trust Bank .1007.5 -7.5 1030.0 755.0
Songbird Estates . . .107.0 2.5 160.3 103.0
VaIiant PetroIeum . . .413.3 -4.8 645.0 400.0
Young & Co's Brew . .625.5 -4.5 712.0 565.0
Kesa EIectricaIs . . . . .80.4 14.4
Ocado Group . . . . . . .111.3 5.6
Inmarsat . . . . . . . . . . .455.2 4.1
DuneIm Group . . . . . .488.0 3.9
Smith (DS) . . . . . . . . .165.8 3.3
EnQuest . . . . . . . . . . .117.0 3.3
Henderson Group . . .124.8 3.1
Perform Group . . . . .265.0 3.1
YuIe Catto & Co . . . . .205.1 3.1
Grainger . . . . . . . . . . .107.0 2.9
Supergroup . . . . . . . .579.5 -17.2
Homeserve . . . . . . . .240.1 -12.7
Misys . . . . . . . . . . . . .298.5 -8.5
Aquarius PIatinum . .162.5 -4.4
DaiIy MaiI and Gen . .444.3 -3.9
Carpetright . . . . . . . .577.5 -3.8
UK CommerciaI Prop .73.0 -3.6
IG Group HoIdings . .476.5 -3.3
Weir Group . . . . . . .1984.0 -3.2
WH Smith . . . . . . . . . .515.0 -3.1
Risers FaIIers
MAIN CHANGES UK 350
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Price Chg High Low Price Chg High Low
GILTS
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NONEQUITY INVESTM. COMM.
Tsy 5.000 12 . . . .100.31 -0.04 104.3 100.3
Tsy 5.250 12 . . . .101.57 -0.03 105.4 101.5
Tsy 9.000 12 . . . .104.75 0.57 111.4 103.3
Tsy 4.500 13 . . . .104.38 0.01 106.5 104.3
Tsy 2.500 13 . . . .283.21 0.03 287.7 279.2
Tsy 8.000 13 . . . . .112.33 0.03 116.9 112.1
Tsy 5.000 14 . . . . .111.67 0.07 112.9 109.2
Tsy 8.000 15 . . . .127.57 0.16 129.2 123.7
Tsy 7.750 15 . . . .100.00 0.00 106.3 99.4
Tsy 4.750 15 . . . . .114.48 0.15 115.4 108.6
Tsy 4.000 16 . . . . .113.55 0.17 114.7 104.9
Tsy 2.500 16 . . . .341.98 0.18 344.2 312.1
Tsy 1.250 17 . . . . .115.54 0.32 116.6 106.7
Tsy 12.000 17 . . .120.65 -0.31 128.7 120.7
Tsy 8.750 17 . . . .140.18 -0.12 141.9 132.9
Tsy 5.000 18 . . . .121.13 0.20 122.5 109.7
Tsy 4.500 19 . . . . .119.21 0.20 120.7 105.4
Tsy 3.750 19 . . . . .114.01 0.22 115.6 99.4
Tsy 2.500 20 . . . .363.24 0.38 367.1 314.0
Tsy 4.750 20 . . . .121.48 0.17 123.5 106.6
Tsy 8.000 21 . . . .150.40 0.19 153.4 133.8
Tsy 4.000 22 . . . . .115.68 0.23 118.2 99.0
Tsy 1.875 22 . . . .126.63 0.56 129.1 111.3
Tsy 2.500 24 . . . .328.08 0.65 334.7 275.6
Tsy 5.000 25 . . . .127.25 0.28 130.6 107.4
Tsy 4.250 27 . . . . .118.89 0.20 122.7 97.9
Tsy 1.250 27 . . . .123.57 0.66 127.0 104.8
Tsy 6.000 28 . . . .143.46 0.19 148.0 119.5
Tsy 4.125 30 . . . .315.31 0.62 322.8 262.9
Tsy 4.750 30 . . . .125.79 0.15 130.5 103.0
Tsy 4.250 32 . . . . .118.35 0.16 123.1 96.0
Tsy 4.250 36 . . . . .118.54 0.16 123.9 95.0
Tsy 4.750 38 . . . .127.89 0.16 134.2 102.8
Tsy 4.500 42 . . . .124.40 0.22 130.8 98.9
% %
29
Wealth Management | Markets
Sport
30
WALES coach Warren Gatland faces
a second-row selection crisis ahead of
Sundays Six Nations clash with
Scotland after lock Bradley Davies
was banned for seven weeks, thereby
ruling him out of the rest of the tour-
nament.
Davies suspension, announced
after a disciplinary hearing in
London yesterday, followed his citing
for a tip-tackle on Irelands Donncha
Ryan during last Sundays victory in
Dublin.
Gatland has already been forced to
make do without injured locks Alun-
Wyn Jones and Luke Charteris, who
are both likely to miss the whole
competition, meaning Ryan Jones,
who impressed at blindside flanker
in his sides Six Nations opener, is
likely to take the No4 shirt against
Scotland at the Millennium
Stadium.
Meanwhile, Irelands Stephen
Ferris will be available for his sides
clash with France on Saturday in
Paris after he escaped punishment
for a tip-tackle on Wales lock Ian
Evans in the same match.
The offence resulted in referee
Wayne Barnes issuing a yellow card
and a penalty, which Leigh
Halfpenny kicked to snatch a last-
gasp 23-21 win for Wales.
ARSENAL face a testing trip to the
Stadium of Light in the FA Cup fifth
round after Sunderland beat local
rivals Middlesbrough 2-1 following
extra time in a tense fourth round
replay last night.
Lukas Jutkiewiczs equaliser, his
first Middlesbrough goal, cancelled
out Jack Colbacks superb first-half
opener for the in-form Premier
League side, but Benin international
Stephane Sessegnons shot settled the
tie just seven minutes before the end
of extra time.
Welsh Six Nations hopes
hit by Davies suspension
RUGBY UNION

FOOTBALL

Sessegnon sets
up FA Cup tie
with Arsenal
N
O CAPTAIN, their star striker
banned for the first two games
of a major tournament and,
after last nights bombshell, the
England team is without a manager
too. Its a mess of quite staggering pro-
portions.
By undermining Fabio Capello the
Football Association has shot itself in
the foot to such an extent that they
are now forced to go cap in hand to
Harry Redknapp and do whatever it
takes to get the Spurs manager on
board. Any other appointment simply
wont suffice.
After such a high-profile court case,
emotionally I cant see Redknapp
being ready to take on the England
job straight away, while Im sure hell
feel he owes Tottenham after the club
stood by him throughout the trial.
At 64 years of age, however, its now
or never for him as far as England is
concerned and although the cards are
completely in his favour, he cant
afford to be too coy.
But I can certainly envisage a situa-
tion whereby he steers Spurs into the
Champions League before assuming
control of the national team before
the start of Euro 2012.
Redknapp will have a job to lift the
spirit in the camp as Im sure the play-
ers will feel severely let down by the
FAs actions, but if anybody is capable
of making the best out of a bad situa-
tion, its Harry.
Trevor Steven is a former Everton and
Glasgow Rangers star who represented
England at the 1986 and 1990 World Cup.
England are in
dire state and
theres only one
man for the job
FOOTBALL COMMENT
TREVOR STEVEN
Results
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email sport@cityam.com
SPORT | IN BRIEF
Italy make changes for England
RUGBY UNION: Italy coach Jacques
Brunel has made two changes to his side
ahead of Saturdays Six Nations clash with
England. Lock Marco Bortolami replaces
Cornelius Van Zyl, while Gonzalo Canale
comes in for Alberto Sgarb at centre.
Fury relinquishes his belts
BOXING: Englands Tyson Fury has relin-
quished his British and Commonwealth
heavyweight belts. Fury has avoided a
mandatory defence against Liverpools
David Price and is ready to focus on tar-
geting a world heavyweight title fight.
Redknapp in
FA sights as
Capello quits
Italians shock resignation over Terry captaincy
row leaves national team rudderless and paves
way for most popular choice to take job
FOOTBALL Association chiefs are
poised to offer Harry Redknapp
the England job after Fabio
Capellos shock resignation last
night capped an extraordinary day
and plunged the national team
into crisis.
The Italian brought a premature
end to his four-year tenure by dra-
matically quitting over the FAs
insistence on stripping John Terry
(inset) of the captaincy and chair-
man David Bernstein accepted his
resignation.
Capellos sudden depar-
ture came just hours
after Tottenham manag-
er Redknapp, the long-
standing favourite to
succeed Capello,
walked free from court
after being cleared of tax
evasion.
A day of huge shifts in
power leaves England without a
manager just four months before
the start of the European
Championship, which was to be
Capellos swansong.
Conveniently for the FA, howev-
er, Redknapps acquittal removed
the most significant barrier to his
appointment and cleared the path
for him to accept a job he has
made no secret of wanting. The
next task will be to establish if and
when Redknapp would be willing
to take charge, and open talks with
Tottenham about compensation.
It is understood Spurs would not
stand in the 64-year-olds way,
amid a groundswell of public sup-
port for his accession, but would
demand the entirety of his con-
tract to be paid up.
England Under-21 coach Stuart
Pearce is expected to be tasked
with taking charge for this
months friendly against Holland,
possibly with director of football
development Sir Trevor Brooking
assisting.
Redknapp is unlikely to
abandon Tottenham while
their challenge for a first
top flight league title in
half a century remains
alive, and Champions
League qualification
looks highly likely.
A more amenable solu-
tion for all parties would be
for Redknapp to finish the season
with Spurs before taking the
England reins in time for Euro
2012, which starts in early June.
Capellos resignation came after
he challenged the FAs decision to
strip Terry of the captaincy last
week while the Chelsea skipper
awaits trial for an alleged racially
aggravated public order offence
towards QPRs Anton Ferdinand.
BY FRANK DALLERES
FOOTBALL

Capello quit after

showdown talks
with the FA
Picture: GETTY
31
EXONERATED Tottenham manager
Harry Redknapp hailed the end of a
five-year nightmare after he was
cleared of tax evasion yesterday,
paving the way for his likely appoint-
ment as England manager.
His acquittal, and that of co-
accused Milan Mandraic, the former
Portsmouth chairman, by a 12-man
jury came just hours before Fabio
Capello dramatically quit as head
coach of the national team.
It really has been a nightmare,
said Redknapp outside Southwark
Crown Court. Its been five years and
this case should never have come to
court. It was horrendous. The jury
were absolutely unanimous there
was no case to answer and Im
pleased we can go home and get on
with my life.
Redknapps acquittal following 14
days of a high-profile trial strength-
ened his position as overwhelming
favourite to succeed Capello, who had
been due to step down after Euro
2012. The Italians unexpected resig-
nation last night prompted wide-
spread calls for the 64-year-old east
Londoner to take over immediately.
The trials outcome has provoked
criticism of City of London Police and
HM Revenue and Customs, whose
lengthy investigation is estimated to
have cost between 8m and 12m but
ultimately came to nothing.
Redknapp also thanked Tottenham
fans and directors, who now face the
prospect of losing the man who led
them into the Champions League for
the first time.
He paid tribute to chairman Daniel
Levy, who would never have
employed me if he felt there was a
problem, adding: I have to thank
the Tottenham fans. The Wigan game
was the most moved Ive ever felt. To
have them sing my name throughout
the game, while all this was going on,
will always be special to me.
Harrys relief at happy end to
five-year tax trial nightmare
BY FRANK DALLERES
FOOTBALL

Redknapp was found not guilty of two charges Picture: GETTY

H
ARRY REDKNAPP has
enjoyed some fine days in
his career, not least an FA
Cup triumph with
Portsmouth and leading
Tottenham into the Champions
League for the first time.
But yesterday must go down as
the most dizzyingly successful 24
hours of his life, such was the seis-
mic shift in his fortunes.
He began the day facing the
prospect of a criminal conviction,
untold damage to his reputation
and the possibility of a prison sen-
tence.
By the time he went to bed, he
had been unanimously cleared of
wrongdoing and effectively hand-
ed the keys to the England manag-
ers office.
Because now it is surely only a
matter of time before he succeeds
Fabio Capello, who unexpectedly
resigned last night.
Redknapp is the pundits
choice, liked by the players and
unquestionably the bookmakers
favourite.
He is also hugely popular with
the public. The rapturous
applause that greeted Redknapps
emergence from court yesterday
illustrated as much.
Already a well-liked figure, his
victory over HM Revenue and
Customs and City of London Police
has only cemented his status as
footballs folk hero.
Far from harming his standing,
the long-running trial and all its
cartoonish details appear to have
made him even more popular in
the publics eyes.
Defeat in the courtroom would
have wrecked his shot at a job he
has admitted he would like.
Victory, and all that followed it,
looks like his biggest result yet.
Frank Dalleres is City A.M. sports editor
COMMENT
FRANK DALLERES
Tottenham boss woke up facing
threat of jail and went to bed with
keys to England managers office
ARE SPAINS TOP CLUBS STILL
RICHEST IN EUROPE?
RONALDO, REAL MADRID AND DELOITTES
FOOTBALL MONEY LEAGUE: NEWS P8
John J. Hardy, Head of FX Strategy for Saxo Bank A/S,
topped FX Weeks annual forecast poll in 2011.

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