Cityam 2012-02-21

FTSE 100 5,945.25 +40.18 DOW CLOSED NASDAQ CLOSED /$ 1.58 unc / 1.20 unc /$ 1.32 +0.
01
Talks over
Greek deal
drag into
small hours
TALKS over a Greek bailout spilled into
the early hours of this morning as
negotiators edged closer to a deal to
cut Greek debt to a sustainable level.
Japanese markets opened lower
after hours of wrangling in Brussels
were yet to produce a deal.
Minister did agree on measures
expected to reduce Greeces debt to
between 123 and 124 per cent of GDP
by 2020 within touching distance of
the 120 per cent target.
Yet extra relief from lenders is need-
ed to drag the rate down to the target-
ed level. A report by the troika the
European Union, European Central
Bank and International Monetary
Fund predicted debt equivalent to
129 per cent of GDP by 2020, even with
the planned reforms.
And if Greek authorities were to
delay reforms and austerity, debt could
soar to 160 per cent of GDP by 2020.
Additional reductions would need
to come from restructuring privately-
held bonds and the ECB foregoing
profits on its holdings, the report said.
Officials suggested that private hold-
ers were being asked to lose at least
53.5 per cent on Greek debt.
Earlier in the evening talks had
stalled on demands that the troika
have permanent representation in
Athens something Greek minister
Giorgos Papakonstantinou later told
Newsnight there was no issue with.
MORE ON EUROZONE: P8-9
BY JULIAN HARRIS
EUROZONE
Mahmoud Ahmadinejad has banned oil exports to the UK and France, further inflaming relations Picture: GETTY
OIL prices surged yesterday after a
defiant Iran banned sales to Britain
and France, amid growing fears over
the countrys nuclear ambitions.
Brent crude nudged over $121 a
barrel the highest level for eight
months as the International Atomic
Energy Agency (IAEA) arrived in
Tehran to assess first hand the Islamic
Republics controversial nuclear pro-
gramme.
Brent crude for April delivery set-
tled up 0.4 per cent at $120.05, its first
close above $120 since June.
Five inspectors have planned two
days of meetings to try and get
answers from Iran on whether its
civilian nuclear energy scheme is a
faade for researching atomic bombs.
The price of oil has climbed from
around $106 a barrel at the start of
the year on rising concerns over sta-
bility in the Middle East.
The country is the worlds fifth-
largest oil exporter and outrage over
its nuclear efforts has provoked an EU
boycott of Iranian oil, due to be trig-
gered on 1 July.
Irans retaliatory ban on sales to
the UK and France is largely symbolic,
since the two countries have already
cut purchases, but the move is a sign
of increasingly strained relations.
www.cityam.com Issue 1,574 Tuesday 21 February 2012 FREE
FITNESS
AL FRESCO
HOW TO WORK
OUT IN THE GREAT
OUTDOORS P26
NHS REFORM: IS THE
GOVERNMENT RIGHT?
SPECIAL FORUM DEBATE P20
BUSINESS WITH PERSONALITY
China, which buys around a fifth of
Irans oil exports, yesterday gave a rare
criticism of the countrys behaviour. A
spokesperson said wedo not
approve of exerting pressure or using
confrontation to resolve issues.
Irans deputy oil minister Ahmad
Qalebani suggested the Western crack-
down would backfire, saying that in
targeting Iranian oil the West had
achieved only a surge in crude prices
from $103 a barrel to $120, and it will
reach $150.
GFT senior markets strategist David
Morrison said oil could rise to $127 a
barrel as the crisis unfolds.
The IAEA yesterday said it was hop-
ing for concrete results after claims
that the Iranian regime has been hid-
ing its true intentions behind a wall of
misinformation.
But chief UN nuclear inspector
Herman Nackaerts warned that
progress may take a while.
Certified Distribution
02/01/12 till 29/01/12 is 92,258
ANALYSIS l Brent Crude Oil
$
20Jan 21 Feb
121
116
111
106
BY JOHN DUNNE & MARION DAKERS
ENERGY
OIL SURGES ON
IRANIAN FEARS
News
2 CITYA.M. 21 FEBRUARY 2012
Laws: target
high earners
DAVID LAWS, the former chief secre-
tary to the Treasury, has mounted
pressure on the chancellor George
Osborne to raise the income tax
threshold to 10,000 in next
months Budget, saying it was time
to signal the end of austerity on
household budgets.
Laws told BBCs Newsnight yester-
day that the Liberal Democrats
would fund the move which would
cost the Treasury some 9bn by
halving the higher rate of tax relief
on pensions from 40 per cent to 20
per cent.
The Lib Dems would target the top
five per cent of earners, which
equates to those earning around
60,000 and above, he said.
Laws, a close aide to Nick Clegg,
said high earners had done too well
out of the tax system, arguing that
all of the tax relief has gone to the
very most affluent people in society.
We can make changes that take
away some of the subsidies that are
going to the top one per cent or five
per cent of the income distribution
and get them to where theyre really
needed those on low and middle
incomes, he said.
Laws said increasing the income
tax threshold would give the govern-
ment the chance of ending the aus-
terity on household budgets.
BY KASMIRA JEFFORD
POLITICS
Cameron needs to refocus his efforts

THE reformist credentials of this gov-
ernment are looking increasingly
shaky. The only area where real
change is taking place is education:
Michael Gove, the secretary of state,
and his uber-competent team, are
pushing through a revolution, liberat-
ing state schools from local authority
control, allowing new schools to be set
up by outsiders, improving standards
and finally beginning to turn around
a 40-year collapse in standards. They
are the only success story; other minis-
ters should look and learn.
In other areas, reform is in retreat.
The shake-up of the NHS is mired in
chaos the whole project looks
doomed. And if it isnt eventually
ditched, the electoral consequences
could be disastrous: the government
has failed to sell its changes and voters
hate them. The coalition should quiet-
ly have intensified and expanded the
NHS reforms launched by Labour,
which were far more radical than usu-
ally understood, rather than seeking
to reinvent the wheel.
That said, those who claim the NHS
reforms will destroy UK healthcare are
wrong the sorry truth is that they
wont make much of a difference
either way. It would be better for the
government to abandon them entire-
ly, sack the beleaguered health secre-
tary Andrew Lansley and focus on
other things. The NHS is not good
enough when compared with health
systems in countries such as the
Netherlands, Germany or Singapore
and will face a huge, terminal crisis
within a decade as an impoverished
UK state becomes unable to keep up
with increasing costs. But tragically
that will now have to be a battle for
another time. The coalition would be
better off dedicating itself to salvaging
welfare reform, which faces political
and logistical difficulties that many in
government appear to have under-esti-
mated. David Cameron needs to refo-
cus his governments efforts if he
doesnt wish to be remembered as a
prime minister who merely tinkered
around the edges of the welfare state.
PAY DEALS
IMAGINE everybody thought your
company made 1bn in the last finan-
cial year and you, as its boss, were
rewarded accordingly when in fact it
only made 500m because what
seemed like good decisions at the time
turned out not to be that great. You
might be happy, but your sharehold-
ers certainly wouldnt be. It makes
sense, therefore, in some circum-
stances, to defer and spread bonus
pay-outs over several years to make
sure that there is enough time to
assess the outcome of decisions. If
they turn out to have been as good as
previously thought, the entire sum is
paid out over three years; if not, then
the deferred bonus can be withheld.
Its an obvious mechanism to make
sure incentives are aligned to real,
long-term performance and has
become the norm in the City; Lloyds
Banking Group has become one of the
first to make use of it, as a result of
provisions for PPI mis-selling material-
ly altering its past performance. The
only problem is the terminology used
bonuses are said to be clawed-back,
which is misleading. By definition, the
deferred components were never paid
out and were never guaranteed they
are therefore not being recovered
from bank accounts. Rather, future
payments are not now going to be
made because the conditions required
are no longer met. All pretty sensible
stuff its hard to know what all the
fuss is about.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
THE UK Border Agency is to be dis-
mantled, after a critical report found
hundreds of thousands of people had
been allowed into the country with-
out full security checks.
Home secretary Theresa May told
parliament yesterday that the UK
Border Force, responsible for the day-
to-day operations of the borders,
would be split from the wider Border
Agency, which also covers immigra-
tion policy.
The Force will be put under the
control of a senior police officer, in
order to foster a whole new manage-
ment culture, May said.
A government-ordered report
found that between 2007 and 2011,
border staff waived some checks on
around 500,000 Europeans arriving
via Eurostar.
The report by John Vine also found
that border checks were regularly sus-
pended without the proper
approvals.
BY MARION DAKERS
POLITICS
May splits Border Agency

Home secretary Theresa May has shaken up border control after a critical report
NEWS | IN BRIEF
Directors cautious over economy
Over a third (35 per cent) of company
directors see a high or very high risk of
the UK falling into recession this year,
according to an Institute of Directors
survey released today. The survey, which
questioned 1,000 business leaders,
found 53 per cent thought there was a
moderate risk of recession while 11 per
cent thought there was a low or very
low risk of two consecutive quarters of
negative growth this year. However, 43
per cent thought any recession would be
short and mild while a third that it
would be long and mild and only 17 per
cent believe it would be deep.
PM committed to NHS reforms
Prime Minister David Cameron yester-
day pledged to push ahead with con-
troversial NHS changes after his
health secretary Andrew Lansley was
heckled outside Downing Street. Their
meeting was to discuss proposals in
the Health and Social Care Bill, which
aim to give GPs greater control of the
NHS budget and open up the health
service to more competition from the
private sector.
FORUM: P20
EDITORS LETTER
ALLISTER HEATH
Editorial Statement
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Commission. The PCC takes complaints about the
editorial content of publications under the Editors
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Liberal Democrat MP
David Laws called on
the government to
take more tax from the
top earners in the UK
4th Floor, 33 Queen Street, London, EC4R 1BR
Tel: 020 3201 8900 Fax: 020 7248 2711
Email: news@cityam.com www.cityam.com
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
The new jobs website for London professionals WWW.CITYAMCAREERS.COM
US CORPORATES SHY TO OFFER
GUIDANCE
US companies are more uncertain
about the future than at any point
since the financial crisis, with just
one in five of the countrys biggest
corporations making any predictions
as they published fourth-quarter
results.
TRANSOCEAN WILL NOT PROPOSE A
DIVIDEND
Shares in Transocean, the owner of
the drilling rig at the centre of the BP
oil spill in the Gulf of Mexico, fell
more than six per cent on Monday,
the biggest drop in two months, after
the company said it did not plan to
propose a dividend at its upcoming
annual shareholder meeting.
WALMART RAISES STAKE IN
YIHAODIAN
Walmart is taking a 51 per cent stake
in Yihaodian, a leading Chinese
ecommerce website, in a significant
move by the US retailer to boost its
online presence in China. Walmart
did not disclose financial details for
the partnership with Yihaodian, one
of the fastest-growing companies in
China. But it already held a minority
stake in the business.
URS AGREES TO BUY FLINT ENERGY
Engineering consultancy URS
Corporation has agreed to buy Flint
Energy Services, the Canadian oilfield
services provider, for C$1.25bn
(US$1.25bn) in cash as it pushes to
consolidate the fragmented $450bn
sector. Buying Flint will increase
URSs exposure to Americas hydro-
carbon industry.
HIGH COURT TO SERVE CLAIM ON
DEFENDANT VIA FACEBOOK
A judge has given the go-ahead for a
claim to be served via Facebook in
what is thought to be the first case of
its kind in the English High Court. Mr
Justice Teare approved the use of the
social networking site after difficul-
ties locating one of the parties in a
commercial claim.
BIDDERS SHORT ON EXPERIENCE HEAD
EDINBURGH AIRPORT QUEUE
The 500m auction of Edinburgh air-
port has entered its final stages after
a shortlist of bidders was drawn up
yesterday. It is understood some have
been told already they are through to
the next round, having submitted
indicative offers last Monday.
NO BLACKLISTING COSTLY DRUGS,
TRUSTS TOLD
Health authorities are to be prevented
from blacklisting expensive branded
drugs under government plans to stop
postcode prescribing. The National
Institute for Health and Clinical
Excellence (Nice) has produced a best
practice guide which states that med-
icines should be automatically incor-
porated on lists of available drugs
within 90 days of approval.
RUPERT MURDOCH SHOULD TAKE BACK
NEWS OF THE WORLD STAFF
Rupert Murdoch has a moral duty
to employ former News of the World
journalists on his new Sun on Sunday
title, according to the former chief
reporter at the defunct tabloid.
TOP BANKS IN EU RUSH FOR SAFETY
Top European banks, responding to
new regulations and wary of lending,
are stashing increasingly large sums
of money at central banks around the
world in a collective flight to safety.
The eight giant European banks that
have disclosed their annual results in
recent weeks reported holding a total
of about $816bn in cash and deposits
at central banks as of 31 December.
FORD PREDICTS MODERATE SALES
GAINS IN CHINA
Ford expects Chinas vehicle sales to
rise about five per cent in 2012, the
auto makers regional head said, fore-
casting a second year of relatively
moderate growth for the worlds
largest car market.
WHAT THE OTHER PAPERS SAY THIS MORNING
A BIDDING war has erupted over Misys
following news of a potential 1.2bn
offer for the British software company
less than two weeks after Temenos
announced its plans for an all-share
merger.
Vista Equity Partners, officed in San
Francisco, Chicago and Austin, is
thought to have offered 360p per Misys
share a 16 per cent premium on
Fridays closing share price of 310p.
Vista, which has until close of play
on 19 March to announce its intention
to bid or withdraw from the table, said
it was conducting due diligence on
Misys.
In a statement, Misys verified the
approach consisting of a non-binding
indicative proposal to acquire the
entire outstanding share capital of
Misys for cash that may or may not
lead to an offer being made.
This latest move has raised eye-
brows, as Misys chief executive Mike
Lawrie plans to step down in March
with the intention of leaving his firm
in the hands of Temenos leadership.
But while Misys biggest shareholder
ValueAct has voiced approval of the
Temenos merger, the Swiss software
provider may have to raise the terms of
its proposal in light of Vistas arrival.
Despite the benefits of a strategic
merger with Temenos, an all-cash bid
will appeal to Misys shareholders.
Temenos declined to comment.
Shares in Misys jumped as much as
twelve per cent yesterday before drop-
ping slightly to close at 3.30, valuing
the company at 1.04bn.
Vista wades
into Temenos
deal for Misys
NICK Clegg has lost his top economic
adviser just weeks before the govern-
ment unveils its Budget, City A.M. has
learned.
Chris Saunders, who was employed
by the deputy Prime Minister on a
salary of 60,000 a year, quit his spe-
cial advisers post on Friday and is cur-
rently away travelling with his wife.
His departure means Clegg is with-
out an economic adviser in the run up
to the Budget on 21 March, leading to
fears the party could struggle to influ-
ence government policy.
A government spokesman said:
After the best part of a decade work-
ing for the Liberal Democrats, Chris
has left to travel the world. His
replacement will be announced in
due course.
In 2010, Saunders was named in
embassy cables sent by the US ambas-
sador to Hillary Clinton, which were
leaked by Wikileaks.
The cables revealed that while in
opposition Saunders had planned to
run a fierce anti-Cameron campaign,
describing him as out of touch with
real life. He dropped the plan after
the death of Camerons son Ivan.
Saunders could not be reached yes-
terday. His voicemail said: I have now
left my job and will be out of the coun-
try until August.
Clegg adviser
quits weeks
before Budget
BY LAUREN DAVIDSON
TECHNOLOGY
News
ANALYSIS l Misys PLC
p
14Feb 15Feb 16Feb 17Feb 20Feb
350
340
330
320
310
300
330.10
20 Feb
BY DAVID CROW
POLITICS
BURBERRY IMPRESSES AT FASHION WEEK

BRITISH fashion powerhouse Burberry unveiled its Autumn/Winter 2012 collection at
London Fashion Week yesterday, bringing thunder, lightning and fake rain to its show in
Hyde Park. Samantha Cameron and US Vogue editor Anna Wintour were among the
famous faces in the front row, as the brand showed its Town & Field collection. Burberry
saw its pre-tax profits rise by 26 per cent to 162m in the six months to 30 September.
News
THE RESTRICTED supply of property
in the most popular areas in
London has led to buyers paying
premiums of up to 100,000 above
the asking price, according to a
report published yesterday by estate
agents Cluttons.
Domestic and foreign buyers have
enthusiastically invested in London,
causing the stock of houses on the
market to fall by 25 per cent at the
start of 2012.
As a result, prices are soaring, the
estate agent said, claiming that hot
spots like Chelsea and South
Kensington have seen such strong
demand that deals are agreed with-
in hours of a property coming onto
the market.
Furthermore, the agent reports
desperate buyers paying premiums
in excess of 100,000 above the ask-
ing price, indicating home-hunters
are confident prime property prices
will keep rising.
House hunters in prime central
London, starved of options, are
going to great lengths to secure a
property when it comes onto the
market, particularly those on the
most desirable roads, commented
Cluttons Charlie Noel Buxton yes-
terday.
We believe registered demand
underestimates the underlying
level, with new instructions attract-
ing a rush of applicants who arent
registering with agents until they
see a property they like.
Desperate buyers pay huge
premium on top properties
BY TIM WALLACE
HOUSING
BELGIAN insurer Ageas announced an

unexpected fourth quarter loss of
44.5m (37m) yesterday as it wrote
down the value of its Hong Kong oper-
ation and took a 124m hit on the
value of its Greek bond holdings.
Without these impairments its
insurance division would have turned
a full year profit of 595m, the firm
said.
Overall insurance income decreased
by four per cent in 2011 as it faced
fierce competition from banking prod-
ucts and state savings products in its
life assurance business.
However, year-end sales at its British
subsidiary were up almost 70 per cent
at 1,979m, earning 105m compared
to a 25m loss in 2009.
The firm only entered the UK mar-
ket four years ago but has steadily built
its market share to 8.4 per cent thanks
to acquisitions, organic growth and
affinity partnerships.
It now has more than 1.5m cus-
tomers through ventures such as Tesco
Underwriting, Kwik Fit Financial
Services and Castle Cover.
Barry Smith, chief executive of
Ageas UK, told City A.M. he was delight-
ed with the results and praised the
quality of the profits which could be
partly ascribed to the financial advan-
tage of our low-cost operation.
We wont expect to see the same
growth in 2012 and it will still be a
tough time for many customers. We
have an incredibly strong team and
will aim to grow quite naturally and
where we see attractive growth.
Ageas, which emerged from the
break-up of Dutch-Belgian bancassurer
group Fortis, said it will propose a div-
idend of eight cents a share at its next
annual meetings to be held in April
the same as the previous year.
The insurer will have 1.1bn of cash
left after the distribution and told
reporters yesterday it will prioritise
investing part of the cash pile in the
business, followed by shareholder dis-
tributions and debt buybacks.
Shares in the group closed down 1.5
per cent at 1.69 last night.
Surprise loss
for Ageas on
write-downs
BY JAMES WATERSON
INSURANCE
ANALYSIS l Ageas SA

1.73
1.72
1.71
1.70
1.68
1.67
1.66
1.69
1.69
20 Feb
BRITISH house-buyers looking to

invest abroad are increasingly will-
ing to move outside of Europe,
according to research from
PrimeLocation.com.
Searches on the website for
Spanish properties plummeted 15
per cent in the final quarter of 2011,
compared with the previous quar-
ter, the website said in figures out
today.
Italy and France were close
behind, with declines of 14 per cent
and nine per cent respectively.
Searches for Portugal fell nine per
cent, while Cyprus saw a 15 per cent
slump in real estate interest,
PrimeLocation claimed.
Meanwhile searches for property
in the United Arab Emirates rocket-
ed 47 per cent, the US 25 per cent
and Australia 22 per cent.
The UAE enjoy low rates of taxa-
tion, a stable and wealthy economy
and an attractive property market,
so its easy to understand why many
highly-paid professionals would be
tempted, said Nigel Lewis from
PrimeLocation.com.
However, buyers considering
more far flung property markets
such as the UAE should seek legal
advice to ensure they understand
the property laws in the country.
In terms of overall searches,
France remains UK buyers favoured
destination, while the US rose from
third to second place on the quar-
ter, overtaking Spain.
Although places such as Spain,
Portugal and Italy remain popular
among UK buyers demand for them
is on the decline, which is not sur-
prising given the ongoing sovereign
debt crisis in the Eurozone, Lewis
explained.
Germany, which is one of the
sturdier countries in the Eurozone,
saw searches for its properties rise
two per cent between the third and
fourth quarters.
And closer to home, wealthy
investors from the Eurozone have
been flocking to central London
real estate to park their cash, send-
ing viewings of prime property up
25 per cent at the end of last year,
according to Knight Frank.
House-hunters
look to UAE to
avoid Eurozone
News
CITYA.M. 21 FEBRUARY 2012 5
UK MORTGAGE lending rose in
January, compared with the same
month of 2011 the sixth consecu-
tive month of year-on-year growth,
according to data out yesterday
from the Council for Mortgage
Lenders (CML).
The CML figures showed lending
was up 10 per cent, and the
Mortgage Advice Bureau (MAB) cor-
roborated the jump this morning,
publishing data showing the num-
ber of mortgage applications rose
25.8 per cent on January 2011.
Gross mortgage lending hit
10.5bn in January, up from 9.5bn
a year ago but lower than the
12.2bn in December, CML said.
Buy-to-let mortgages have also
been improving, edging up their
share of the market to nearly 13 per
cent in the fourth quarter of 2011,
CML said.
The average loan to value of mort-
gages stood at 72 per cent, and the
average deposit rose to 56,167 from
52,284 last January, MAB reported.
The new year has started com-
paratively positively in spite of the
generally negative economic situa-
tion and low levels of consumer
confidence, said Brian Murphy
from MAB.
Mortgage loans
up as recovery
stays on track
PROPERTY
BY TIM WALLACE
PROPERTY
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News
BANK of Ireland said yesterday it
was attracting deposits, cutting
costs and expected home loan
arrears to peak this year, raising
hopes Irelands biggest lender had
turned a corner after a 60 per cent
drop in operating profit in 2011.
The only Irish bank to avoid
nationalisation after an unprece-
dented property crash, Bank of
Ireland said low interest rates would
make it harder to achieve its goal
for a net interest margin the gap
between what it charges for loans
and what it pays to borrow of two
per cent in 2014.
But chief executive Richie
Boucher was optimistic of progress
after the cost of drawing in deposits
and an expensive government guar-
antee of its liabilities trimmed the
margin by 13 per centage points to
1.3 per cent last year.
After successfully attracting pri-
vate capital to meet strict new cen-
tral bank targets last year, Bank of
Ireland is focused on restructuring
and weaning itself off state funds.
BANKING
Bank of Ireland
keeps deposits
at lower cost
CREDIT CARD insurance firm CPP
says the Financial Services
Authority (FSA) could force it out of
business, after the regulator asked
for a retrospective review of sales
tactics.
The company suspended its
shares on the London Stock
Exchange yesterday after declaring
that the new demands are dispro-
portionate and threaten the viabil-
ity of the business.
The FSA yesterday said it is likely
CPP will be required to carry out a
past business review of direct sales
and, if appropriate, pay redress as
the regulator enters the twelfth
month of its investigation into alle-
gations of mis-selling at the York-
based firm.
Although both parties agree that
a business review is appropriate,
they disagree as to the extent of
the investigation. CPP claims the
FSAs demands could bankrupt a
firm that floated for 150m in
2010.
If the firm ceased trading it
would leave no money for possible
compensation and put almost
1,969 jobs at risk.
In a statement the regulator
said: The FSA is committed to
ensuring consumers are protected
and that the firm treats its cus-
tomers fairly.
The FSA has serious concerns
about the manner in which cus-
tomers were being sold identity
theft and card protection policies
by the firm.
CPP now has two weeks to come
to an agreement with the FSA on
the form that any reappraisal will
take.
The firm has already suspended
sales of its identity insurance prod-
uct and recently lost an important
contract with Barclaycard.
Henry Carvers, an analyst at Peel
Hunt, said the outlook is bleak: If
the FSA holds its ground that effec-
tively means paying back a lot of
money to a lot of customers, which
could be potentially crippling for
CPP.
Its difficult territory, he con-
tinued. Can you genuinely ascer-
tain whether someone was duped
into buying a product?
Shares in the firm last traded at
103p, down from 235p when it
floated in March 2010.
ANALYSIS l CPPGroup PLC
p
120
115
110
105
100
103.00
20 Feb
CPP says FSA probe
risks firms future
THE former Dresdner Kleinwort
Investment Bank (DKIB) staff
demanding 50m (41.8m) in
unpaid bonuses are seeking
rewards for failure, the high court
was told yesterday.
Tom Linden, QC, representing
parent company Commerzbank,
said the promise by the German
lender to pay a minimum bonus
pool of 400m for 2008 was a non-
binding commitment and that it
had to cut payouts as its perform-
ance deteriorated at the start of the
financial crisis.
Linden said the writ, issued by
104 former staff, was a claim to be
rewarded for the failure of DKIB in
2008.
Dresdners investment bank
made a loss for that year and
Commerzbank, which bought the
division, was later bailed out by
German taxpayers.
Dresdner parent Commerzbank
defends bonus cutting stance
BANKING
THE FSA has fined Santander

1.5m for failing to label its finan-
cial products clearly and being too
slow to respond when it discovered
the fact.
The City watchdog says the bank
did not sufficiently clarify whether
buyers of some products were cov-
ered by a financial industry insur-
ance scheme. The bank disagrees
but will not appeal.
BANKING
Santander gets
1.5m FSA fine
HSBC is to launch a 4bn fund that
will lend to small and medium-
sized businesses that trade interna-
tionally.
The aim is to capture the benefit
of increasing global trade conduct-
ed by British SMEs with a turnover
of up to 25m.
The bank also published research
today forecasting that the UKs
international business activity will
increase by 60 per cent in the next
three years.
The report predicts that British
companies will export increasingly
to Vietnam and Brazil and will
import more from Qatar.
The industries expected to see the
most international growth are oil
and gas, car manufacturing and
biotech.
HSBC launches 4bn fund
to lend to exporting SMEs
HSBCs Stuart Gulliver wants the bank to sit in between global trade flows Picture: GETTY
BY JULIET SAMUEL
BANKING
BANKS are urging the Treasury not to

set a rigid target for its credit easing
scheme because it risks setting it up
to fail, a source involved in the discus-
sions told City A.M..
In December, chancellor George
Osborne laid out his plan to get credit
flowing to small businesses by offer-
ing 20bn in debt guarantees to
banks, so that they could pass on the
benefit to small firms in cheaper
loans.
But there is no clear sense of how to
measure the effectiveness of the poli-
cy in the real economy.
A source involved in the discussions
between banks and the Treasury said:
There is no incremental estimate for
how much credit it will get into SMEs
[small and medium-sized enterprises].
Banks believe that if the Treasury
sets a target for how much it wants to
boost credit through the scheme, it
risks going to the same way as the
Project Merlin deal with lenders, in
which the government trumpeted
dubious targets that were then
missed.
It is understood that if it does set a
target, the Treasury is likely to favour
one related to how much small firms
borrowing costs have come down
rather than a target based on how
much more they have borrowed and
invested as a result.
Any target will rely on banks esti-
mates of how much they have cut the
cost of each loan and could be sector-
specific depending on what kind of
firm is borrowing the money.
Were working out the details of
how to measure the tangible effects of
the scheme, said a Treasury
spokesman.
One option is for the Treasury to
accept banks argument tacitly and
simply stick with the very loose goal
already stated of cutting SME credit
costs by up to 100 basis points. But it
could prove hard to measure success
by that benchmark.
Lenders opposed
to easing target
BY JULIET SAMUEL
POLITICS
BY JAMES WATERSON
INSURANCE
News
Former chief exec Eric Daniels
Former head of retail Alison Brittain
Former head of wholesale Truett Tate
Former chief financial officer Tim Tookey
WHY ARE LLOYDS DIRECTORS LOSING PART OF THEIR BONUSES?
Q.
WHAT HAS LLOYDS REMUNERATION
COMMITTEE DECIDED?
A.
In response to pressure from the
FSA, Lloyds has decided to claw
back a chunk of the bonuses it
awarded to some senior executives to
reflect the huge 3.2bn loss the bank
has suffered as a result of mis-selling
payment protection insurance (PPI) to
thousands of consumers. In autumn
last year, banks lost a high court case
challenging the FSAs ruling that the
way in which they sold PPI went
against the spirit of the rules at the
time and they should therefore pay
out compensation to customers.
Q.
WHAT IS THE BANK CLAWING
BACK?
A.
Thirteen former senior executives
at the bank are having a portion
of their 2010 bonus awards cut for a
total value of 1.5m. But the bank is
not actually clawing back pay in the
sense of getting money paid back.
Instead, it is cutting down on its plans
to pay out millions in long-term
incentive plans all-share bonuses
deferred over several years. The execu-
tives are not actually losing assets
they already have; they are losing
future rewards.
Q.
WHOS LOSING WHAT?
A.
Former chief executive Eric
Daniels is losing 40 per cent of the
long-term bonus award he was given
in 2010, equal to 580,000. Four other
former board executives Truett Tate,
Alison Brittain and Tim Tookey are
losing 25 per cent each, altogether
nearly 1m. In addi-
tion, eight other
unnamed executives
are losing five per cent for a
total of nearly 2m.
Q.
WHY ALL THE FUSS?
A.
Aside from emphasising the sever-
ity of the PPI scandal, the FSA is
keen to establish a precedent for get-
ting rewards back off executives to
punish them for losses that emerge
after they have left. It is part of an
effort to align management incen-
tives with the long-term health of the
bank and tackle short-termism. But
it is open to the criticism that the FSA
is prioritising issues that spark pop-
ulist anger rather than those that led
to the bank seeking a bailout.
Q A
&
Santander UK
unable to get
back bonuses
LLOYDS has announced plans to pun-
ish its former management for losses
incurred due to a customer mis-selling
scandal but its current executives
have escaped a similar penalty for
their role in the same scandal at
Santander UK.
Santander UK, the former home of
many of Lloyds current top execu-
tives, has found itself unable to punish
the management that presided over
mis-selling insurance because they
gave up their long-term bonus when
they left to join taxpayer-owned
Lloyds. They instead received golden
hello awards worth the same
amount.
City A.M. understands that
Santander has sought legal advice on
whether and how it can reflect the
538m hit it took compensating cus-
tomers who were mis-sold payment
protection insurance (PPI) by slashing
pay-outs for the managers in charge at
the time.
But because the relevant execs
Antnio Horta-Osrio, Antonio
Lorenzo, Juan Colombs, and Alison
Brittain gave up their long-term
incentive-based bonus when they quit
Santander UK for Lloyds, the bank has
nothing to reclaim.
All three received golden hello
share awards to compensate for the
loss of their long-term bonus when
they joined the semi-nationalised
Lloyds.
But they were not compensated for
the loss of their pension pots, which in
the case of Lloyds chief executive
Horta-Osrio, was worth more than
the golden hello. A spokesman for
Lloyds said: It is worth remembering
that Antnio gave up very significant
future earnings when he left
Santander to join Lloyds.
The banks former executives, how-
ever, are likely to be unimpressed by
the slashes to their long-term bonus
awards while their successors remain
in tact.
Former chief executive Eric Daniels
bore the brunt of the punishment: 40
per cent of his long-term bonus was
cut, equal to 580,000. Four other
directors are to lose a quarter of their
long-term share bonus and eight more
will see five per cent sliced off.
They are being punished for run-
ning the bank when it mis-sold PPI to
thousands of consumers and then
appealing against a high court ruling
on the matter, resulting in a total cost
of 3.2bn to Lloyds, which is expected
to wipe out its 2011 profits.
The bank said the decision by the
board is based on the fact that had
the outcome of [PPI scandal] been
known... individual bonus awards
would also have been lower.
Last night it was reported that RBS
and Lloyds plan to ignore calls to claw
back rewards in the wake of the PPI
scandal.
ANALYSIS l Lloyds Banking Group PLC
p
37
36
35
34
33
36.35
20 Feb
BY JULIET SAMUEL
BANKING
DAVID Cameron and 11 other
European Prime Ministers have called
on the EU to be more honest about
the cost of its regulations, end implic-
it state guarantees that banks will not
be allowed to fail, and open up the
services sector to increased competi-
tion across the 27 members.
In a letter sent to European
Commission President Jose Manuel
Barroso and European Council boss
Herman Van Rompuy yesterday, the
leaders including Spains PM
Mariano Rajoy and Italys Mario
Monti, but not France or Germany
argued that the EU must address
major structural problems if its
economies are to grow and create
jobs.
The current crisis of growth must
be addressed with strong pro-market
policies to free up labour, services and
international trade, the leaders said,
to recover Europes dynamism and
put our economies back on the path
to economic recovery.
The Union needs ambitious tar-
gets to reduce the burden on EU
regulation, and should publish an
annual statement identifying and
explaining the total net cost to busi-
ness of regulatory proposals issued in
the preceding year, the letter said.
Echoing the action being taken in
Italy, the leaders called for urgent
action remove the restrictions that
hinder access and competition in
THE EUROPEAN Central Bank (ECB)
kept its government bond purchases
to an absolute minimum last week,
spending less than 150m (125.4m)
for the third week running.
The ECB has all but halted its pur-
chases of troubled Eurozone debt
over the last month and a half, fol-
lowing both a substantial improve-
ment in key bond markets, and calls
for it to take losses on Greek bonds.
Last weeks 59m of purchases
represents a token signal the pro-
gramme is still operational and
edges the amount spent since start-
ing the purchases in May 2010, up to
219.5bn.
ECB bond buys
at close to zero
BY TIM WALLACE
POLITICS
EUROZONE
News
8
the services sector, furthering the sin-
gle market and boosting GDP.
The same must be true of the digi-
tal economy, the letter said, which is
expanding rapidly within countries
but is stifled across borders because
of a complex web of differing copy-
right regimes.
Expanding free trade agreements
would further this agenda, they
Leaders: Open
ECB boss Mario Draghi has kept bond buying low
Bundesbank: German
GERMANYS economic outlook is
improving despite the Eurozone crisis
and the countrys economic contrac-
tion in the final quarter of 2011, the
Bundesbank reported yesterday.
The national central bank described
the countrys current problems as
temporary sluggishness, arguing
that business and consumer surveys
pointed to a stable or positive picture.
This more positive environment
should remain in place provided that
the sovereign debt crisis in Europe and
the situation on the oil markets do not
deteriorate, the report said.
Loose monetary policy in industrial
nations and the prospect of loosening
in emerging markets is propping up
the economy, meaning some of the
current forecasts by international
organisations look overly pessimistic.
The report should cheer German
Chancellor Angela Merkel, as wage
growth and the perceived low risk of
redundancy have combined with the
low cost of financing to boost the
BY TIM WALLACE
GERMAN ECONOMY
HUNGARY expects to arrange finan-

cial backing from the EU and
International Monetary Fund (IMF)
by the end of March, a senior econo-
my ministry official said.
The country does not expect to
need international funding, but the
support would help it access markets
again at a time when it needs to refi-
nance maturing debts.
Its government has argued with
the EU over a new constitution, but
is now expected to compromise on
some issues.
Yesterday, Hungarys parliament
voted in favour of joining the EUs
latest fiscal compact.
Hungary closer
to IMF support
French business
more confident
EU ECONOMY
News
9
Spains Mariano
Rajoy, Italys Mario
Monti and David
Cameron all called
for action on jobs
Pictures: GETTY
up EU for jobs
argue concluding just the deals cur-
rently being negotiated, with coun-
tries like Japan, China and Canada
could be worth 90bn (75.2bn) to the
EUs GDP.
The letter also argued that banks
should take responsibility for the
loans they make, rather than relying
on state support if they fail, and that
Basel III rules will help ensure the sta-
bility of the financial system.
Crucially for Britain, the letter
made no mention of the proposed
financial transactions tax, which the
European Commission favours imple-
menting across the EU but Cameron
opposes on the grounds it will dam-
age the UKs financial services sector
and simply drive banks to other glob-
al financial centres.
economy set to grow
countrys construction sector.
The report said the impact of the
Eurozone crisis was not just being felt
through lower exports but also higher
immigration from Greece, Italy, Spain
and Portugal. They accounted for
around 10 per cent of net immigration
in the final quarter of 2011, when it
was roughly balanced in 2010.
However, the Bundesbank did have
one word of warning for Merkel her
fiscal consolidation aims therefore
appear very unambitious, it said,
arguing against any relaxation in
Germanys deficit reduction plan.
BUSINESS confidence in France held
steady in February, according to sta-
tistics agency INSEE, suggesting the
economic slowdown may have bot-
tomed out.
The business climate index stayed
at 91 yesterday below its long-term
average of 100 for the sixth month in
a row, but suggesting conditions are
no longer deteriorating.
However Belgian consumer confi-
dence declined sharply from minus
16 to minus 20, its lowest level since
April 2009, the National Bank of
Belgium said yesterday, blaming a
weakening employment outlook in
the export-dependent economy.
EUROZONE
German
leader
Angela
Merkel
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Banks can trip in search of a rise up the table
I
NVESTMENT bankers are pleased
with any pickings these days and
in the past few weeks there has
been healthy signs of action in
the world of block trades.
This is a phenomenon whereby a
bank offers to buy a block of shares in
one company and sell it on.
The idea is that, hopefully, the
bank in question can line up a list of
buyers of the stock at a price that
gives it, together with a fee for under-
taking the transaction, a healthy prof-
it.
But last week Morgan Stanley
found that it had to buy half the stake
in Danish telecom group TDC itself,
after it failed to find sufficient buyers
for the shares.
Morgan Stanley will now have to
drip feed the shares onto the market
over the next few months at the risk
of dampening down the price, or it
can take a decision to hang on for a
while before selling them all in one
go. Morgan Stanleys experience fol-
lowed that of Citigroup, which the
week before experienced similar diffi-
culties selling down a parcel of shares
in Centrica.
Its possible that both transactions
were just unlucky and that deals that
felt do-able at the time suddenly
turned wrong for inexplicable rea-
sons.
But many in the market feel the
two incidents indicate a willingness
on behalf of some banks to act too
aggressively in order to get the deal.
This could be either to keep bankers
busy or satisfy a desire to pick up mar-
ket share in the all-important league
tables that the banks all follow (or
both of these reasons).
With the London IPO market still
near dormant, and the European
ones quietish, block trades are an
increasing focus for underutilised
equity capital markets teams. And
there is strong demand from
investors who are underweight in
equity risk assets, especially those
with a European flavour now that the
fear of a meltdown is receding.
There are rumours that Lloyds
Banking Group is once again evaluat-
ing the possible sale of its 60 per cent
stake in the fund management group
St Jamess Place, though no
announcement is imminent. Also
there is talk that the insurance group
Aviva might be lining up buyers for
its stake in Delta Lloyd.
The experience of the past few
weeks demonstrates, however, that
such business does not come without
risks, no matter how many league
table points it might account for.
MOVES AT UBS
Any day now, UBS is expected to
announce the successor to its head of
EMEA equity capital markets Peter
Guenthardt, who is being promoted
to become the chief executive of the
Switzerland investment bank.
One theory is that his job will be
split by two people: Darrell Uden and
Chicco di Stasi, the current head of
the banks strategic equities solutions
group.
david.hellier@cityam.com
INSIDE TRACK
DAVID HELLIER
OLYMPUS plans to promote execu-
tive officer Hiroyuki Sasa to the role
of president in April, according to
Japanese reports.
Sasa, who has worked as head of
development as well as marketing at
subsidiary Olympus Medical
Systems Corp, will be appointed
president on 20 April, the Nikkei
paper reported.
Japanese prosecutors are now con-
sidering indicting Olympus as a
company for falsifying its financial
reports to conceal huge investment
losses in a $1.7bn (1.07bn) scandal,
Kyodo news agency reported.
Olympus picks president
TECHNOLOGY
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SATELLITE communications firm
Inmarsat and its American lodger
LightSquared have locked horns over
the payment of a $56.25m (35.5m)
rent cheque due last Saturday.
Inmarsat, which is headquartered
in London, yesterday issued a notice of
default to the US wireless company,
citing an unpaid multi-million pay-
ment due upon the completion of the
phase one transition.
LightSquared proclaimed its inno-
cence, claiming that Inmarsat neglect-
ed to fulfill its obligations required for
the completion of phase one.
LightSquared, which provides
wholesale-only 4G networks, has
recently come under fire in the US on
claims that its services interfere with
GPS provisions operated from a neigh-
bouring spectrum.
But an Inmarsat spokesperson told
City A.M.: We are confident that we
have fulfilled everything we are
required to do under phase one of the
agreement.
LightSquared now has 60 days to
come forward with the due payment,
otherwise Inmarsat will reclaim the
10MHz of spectrum it currently loans
to LightSquared and gain a further
two MHz of range owned by the
American company.
Inmarsat shares fell one per cent.
Inmarsat and
LightSquared
clash on rent
BY LAUREN DAVIDSON
TELECOMS
FOXCONN, the top maker of Apples

iPhones and iPads whose factories are
under scrutiny over labour practices,
has raised wages of its Chinese work-
ers by 16-25 per cent from this month,
in the third pay hike since 2010.
The wage increases come just a
week after Apple agreed to let a US
non-profit labour group inspect work-
ing conditions at its main contractors,
including Foxconns plants in south-
ern China, where thirteen employees
committed suicide in 2010.
The computing giant, which is
attempting to counter criticism that it
is glossing over problems at these facil-
ities, said last week it believed work-
ers everywhere have the right to a safe
and fair work environment.
It has also given ABC TV network
special access to the Foxconn plants, in
a segment due to air tonight.
Foxconn lifts wages for workers
after Apple launches inspection
TECHNOLOGY
News
Ambitious network wont see light of day
FOR several years Inmarsat was the
unsung darling of the FTSE 100.
During the financial crisis it became
a safe haven for investors seeking
shelter from riskier stocks, a
high-tech defensive with few com-
petitors. Better still, its biggest share-
holder Harbinger Capital, the US
investment fund, propped up the
shares by making clear its intention
to launch a takeover bid for the
entire firm.
These advantages started to disap-
pear in late 2010 once Harbinger said
it was no longer interested in mak-
ing an offer. It needed the cash to
build LightSquared, a super-fast wire-
less broadband network in the US.
The project was as ambitious as its
name suggested.
Harbinger sugared the pill by
offering Inmarsat $350m to reconfig-
ure its spectrum in the US and
Canada. Then, from January this
year, it was supposed to pay $115m a
year to Inmarsat to lease spectrum in
a deal that would have proved
extremely lucrative for Inmarsat
shareholders. Analysts reckoned the
cash was worth up to 200p a share.
Alas LightSquared will never see
the light of day, after US regulators
ruled the network would interfere
with the navigation systems used by
aeroplanes and ships. It is a complete
non-starter. Yesterday, Inmarsat said
it had not received a payment of
$56.52m from LightSquared and, in
reality, it is unlikely to get anything
in the future.
That will mean investors focus on
the other areas of its business, and
the picture is not rosy. Its main
clients the shipping industry and
armed forces are retrenching while
competitors are making inroads. No
wonder its shares, now relegated to
the FTSE 250, have fallen 42 per cent
since their peak in June 2010.
david.crow@cityam.com
BOTTOMLINE
Analysis by David Crow
ANALYSIS l Inmarsat PLC
p
490
480
470
460
440
450
477.10
20 Feb
BLACKFRIARS TUBE STATION REOPENS
Blackfriars tube station has reopened after a complete rebuild lasting almost three years.
The station now provides an improved interchange with the mainline Thameslink sta-
tion, an enlarged ticket hall and new entrances. Mayor Boris Johnson said the station
was like a Scandinavian airport, its so clean or a Swiss maternity ward.
Picture: Laura Lean / CITY A.M.
BUSINESS WITH CONFIDENCE +44 (0)1908 248 250
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and experience required of those undertaking senior roles in
corporate nance.
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experience rather than a formal exam. Submit by 16 April 2012.
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MEDIA EXEC
BRINGS 1M
PERUVIAN
BID TO SOHO
MARTIN MORALES was headhunted by
Apple as one of the four founders of
iTunes Europe and sat on the board of
The Walt Disney Company.
But Ceviche, the Peruvian restaurant
behind a plain black door at 17 Frith
Street in Soho, is his lifes work.
Since leaving Disney in July 2011, the
half-Peruvian Morales has survived on five
hours sleep a night and almost bankrupt-
ed his family as he pitched the business to
300 potential investors to raise the 1m
needed to found the venture.
Morales holds a majority stake; the rest
has come from individual minority share-
holder friends, with advisory support
from hospitality and media contacts
including Sinclair Beecham, the Pret A
Manger co-founder, Innocent Drinks
entrepreneur Richard Reed and Michael
Acton-Smith of Moshi Monsters, who once
Networks has been forced to delay the
power cut it had planned for the St Pauls
thoroughfare tomorrow to carry out
planned works.
The area manager is in consultation
with the City of London Authority with
regards to possible alternatives to give the
least disruption to all involved, climbed
down the energy distributor, following
the deluge of outraged letters, emails and
phonecalls. As soon as we have any fur-
ther details, we will be in touch.
More power to Royds Solicitors, City
Road Communications and European
Grain & Shipping, who will be conducting
business as usual in the meantime.
DOWNHILL FAST
SOMETHING for the Citys skiing fans the
chance to be guided by the greatest down-
hill skier of all time, Franz Klammer, on a
four-night trip next winter staying in
four- and five-star European resorts,
including a traditional Alps evening.
The trip for up to eight people
will be auctioned at the Square
Mile Salute at Guildhall on
Wednesday.
The fundraising dinner
is sold out, but the organiser,
Chamberlains of London
will be accepting email bids from
those who cant attend in person.
These bids should be sent to
anne@chamberlainsoflondon.com.
employed Morales as a consultant.
Acton-Smith advised the average time
to raise start-up investment is two years,
but Ceviche secured its funding within
six months by last August a pretty
extraordinary achievement in this cli-
mate, says Morales.
Thirty of Perus 420 national dishes
will be served under the eye of former
Soho House Group chef Alejandro Bello
when the venue opens on 5 March, and
Morales hopes to break even within six
months of launch. Turnover, he predicts,
will be in the ballpark for that area of
Soho between 20k to 60k per week.
The Capitalist
EDITED BY
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @dennysharriet
AMLIN ON TRACK
TOOLS were downed at Lloyds of
London yesterday as employees stopped
to stare at ex-England rugby captain
Lawrence Dallaglio and ex-England
cricket captain Freddie Flintoff, who
dropped in as guests of insurer Amlin.
The sportsmen are preparing for
their epic charity cycle ride: the 2012
Cycle Slam between 23 April and 18
May, when the pair will cycle 2,872km
across Europe from Olympia in Greece,
the birthplace of the ancient Olympic
Games, to the venue of the London
2012 event in Stratford.
Amlin has supplied 22 of its under-
writers and brokers to accompany
Dallaglio and Flintoff (right) on
the 362-mile final leg, which
includes the Hell of the North,
a 153km journey over cobbled
farm tracks from St Quentin to
Roubaix.
POWER BATTLE
ROUND ONE to the City in the
battle of Carter Lane. After
intense lobbying from unamused
local businesses, UK Power
Left: Ceviche founder
Martin Morales with head
chef Alejandro Bello
Right: Olympic downhill
champion Franz Klammer
INVESTORS in Dutch freight and
delivery firm TNT Express are press-
ing for a higher offer from US-based
United Parcel Services, driving shares
up more than 60 per cent to an all-
time high yesterday.
TNT said on Friday it had rejected
an offer from UPS, the worlds
largest package delivery company, of
9 per share which valued the com-
pany at 4.9bn (4.09bn), but that
both companies were still in talks
over a possible deal.
A source close to the talks said
shareholders wanted to sell their
stock and hoped to get between
9.50 and 10 per share for a compa-
ny which offers Atlanta-based UPS a
bigger presence in Europe.
Some TNT investors had called for
a management change because of
poor revenue, profits and share price
performance.
Everyone is expecting a higher
bid, SNS fund manager Corne van
Zeijl said yesterday, adding that rival
FedEx may enter the fray. He said he
expected UPS would win the prize.
FedEx can possibly come with an
offer. Ten euros per share is possible.
Because FedEx is smaller they can
finance it less easily.
Van Zeijl said he was holding out
for as much as 11 per share.
Dutch post firm PostNL, which is
TNTs biggest shareholder with a
29.9 per cent stake and holds the key
to any talks with a buyer, declined to
comment.
TNT shares hit an all-time high of
10.24, up more than 60 per cent
from Fridays closing price of 6.34.
The stock closed at 10.18.
TNT shares jump
60pc as sale talks
with UPS heat up
BY HARRY BANKS
M&A
News
SILVER SCREEN STAR COULD GO FURTHER INTO RED
Weinstein Co, the film studio behind Bafta boardsweepers The Artist (pictured) and The
Kings Speech, is said to be looking to raise $150m (94.7m) to support operations and
pay off debt. The company has struggled financially since its 2005 birth, but is rising to
success on a string of Oscar nominations. Union Bank is managing the process.
SHARES in wireless technology firm
CSR, which makes chips for use in the
Beats headphones loved by Premier
League footballers, soared yesterday
after it pledged a stock buyback of up
to $50m (31.5m), raised its dividend
and said it would cut costs quickly.
CSR shares closed up 20.77 per cent
at 275p last night, making it one of the
highest risers on the FTSE 250 index,
despite posting a fourth quarter loss.
Analysts and investors were cheered
as CSR said it had boosted its gross
margin in the fourth quarter as its
focus on platforms such as audio starts
to pay off.
It halted the development of tech-
nology for digital television and silicon
tuners in December to focus on higher-
margin areas such as its chips. These
feature in the Beats by Dr Dre head-
phones, which are worn by footballers
including Arsenal legend Thierry
Henry, Everton goalkeeper Tim
Howard and singer Lady Gaga.
CSR also said it would raise its final
dividend to 7.1 cents per share from
6.5 to give a total payout for the year of
10.3, having stacked up $278m in cash
or cash equivalents by the end of 2011.
It also said it would deliver $130m of
annual cost savings by the end of the
second quarter.
The changes provided a diversion
from CSRs fourth quarter underlying
operating loss of $4.9m after tax, com-
pared to a $12.5m profit a year ago,
reflecting restructuring costs and the
integration of Zoran, the imaging tech-
nology group it bought last year.
Chief executive Joep van Beurden
said: Customers are still cautious but
the situation today, against quarter
three and quarter four, is a touch bet-
ter... Underlying demand has sta-
bilised.
Revenue for the quarter rose 32 per
cent to $244m, towards the top of fore-
casts, while its gross margin improved
to 51 per cent from 48.7 per cent.
CSR spree is music to
the ears of the City
BY PETER EDWARDS
TECHNOLOGY
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ANALYSIS l CSR PLC
p
290
280
270
260
250
240
230
275.00
20 Feb
ANALYST VIEWS: ARE THE CHIPS UP OR DOWN FOR CSR? By Peter Edwards
NICK JAMES | NUMIS

Fourth quarter results are ahead of
expectations with slightly better revenue...
We upgrade our target price to 290p from
220p... Focus in full year earnings 2012 is on
voice and music, location, automotive,
Bluetooth low energy and image capture
areas where CSR has strong platforms and has
already demonstrated some healthy
revenue trends.
ALEX JARVIS | PEEL HUNT

CSR is (rightly) capitulating on its
combo roadmap, which means it cannot com-
pete long term in key smartphone and tablet
markets and is cornered into smaller, lower
growth markets. Although the cheapest of the
semi [conductor] stocks, which may be a good
place to be through the next phase of invento-
ry re-stocking, it is the least attractive
of the peer group.
IAN ROBERTSON | SEYMOUR PIERCE

Fourth quarter results have come in ahead of our forecasts at the revenues level, at the top end of the guid-
ance range and just ahead of consensus... Against our gross margin estimate of 49.5 per cent the company generated a
margin of 51 per cent. The year end cash of $278m against our estimate of $254m is particularly encouraging,
although the unpaid post acquisition costs of Zoran are likely to have been a significant element of this variance.
SOUTH Koreas Samsung Electronics,

the worlds biggest maker of televi-
sions, officially marked a shift in its
focus towards new generation OLED
display technology, and said it will
spin off its loss-making LCD flat-
screen business into an affiliate.
The announcement comes after
weeks of speculation, with the out-
look for liquid crystal display televi-
sions grim as shoppers in developed
markets trade in their bulky cathode-
ray tube TVs for flat screens and com-
petition intensifies from low-cost
Chinese manufacturers.
Annual global sales of LCD TVs will
contract by eight per cent to $92bn
(58bn) by 2015, research firm
DisplaySearch has forecast, while the
OLED display market could top $20bn
by 2018 accounting for 16 per cent
of the total display industry, up from
a current four per cent.
Sony agreed to exit its LCD joint
venture with Samsung in December,
while Sharp said it would halve LCD
output at one of its plants.
Samsung shifts
to new TV tech
on LCD spin-off
TECHNOLOGY
Learn the Secrets

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News
SHARES in sports retailer JJB
soared by 15 per cent yesterday as
investors reacted well to improved
margins at the group, despite a
fall in sales.
JJB, which is attempting to turn
around its fortunes having been
close to collapse last year, said
that group like-for-like sales for
the five weeks to 29 January had
fallen 5.7 per cent, contributing
to a 7.6 per cent drop in like-for-
like sales in the companys fiscal
second half.
But signs of improvement com-
pared to the first half when
sales fell 17.9 per cent and a 32.1
per cent uplift in margins seem to
have appeased investors, who will
now be looking to the summers
major sporting events as a cata-
lyst for further progress.
Since our Christmas trading
update our like-for-like cash mar-
gins have continued to improve
and our full year trading perform-
ance is broadly in line with our
expectations, said chief executive
Keith Jones, who was brought in
during 2010 to lead the company
out of trouble.
We are continuing to imple-
ment our turnaround aware of
the importance of the key trading
opportunities afforded by the
European football championships
and London Olympics, he added.
Panmure Gordon analyst Philip
Dorgan said the group was per-
forming well on a cash profit
basis.
Last week rival Sports Direct
delivered a much more upbeat
trading statement, with total
sales up nine per cent in for the
quarter ended 2 January. It also
said it plans to reintroduce its div-
idend after a two-year hiatus.
Margin boost sends
JJB shares soaring
BY ELIZABETH FOURNIER
RETAIL
TESCO, the worlds third-largest

retailer, launched the initial public
offering of its Thailand property
fund yesterday, aiming to raise up
to 369m to finance future expan-
sion.
The offering is part of a trend
among retailers in recent years to
squeeze more value from their real
estate assets, bundling them into a
property fund, selling the fund to
investors and leasing back the prop-
erty.
The Tesco Lotus Retail Growth
Freehold and Leasehold Property
Fund, as it is formally called, com-
prises 17 shopping malls anchored
by a Tesco Lotus hypermarket in
cities including Bangkok and
tourist destinations such as Krabi.
The fund is well positioned to
capitalise on the steady growth of
the Thai economy, the strength of
the retail sector and increasing
wealth and consumption across the
country, Tesco Lotus chief execu-
tive Chris Bush said in a statement.
The property fund, similar to a
real estate investment trust, or
REIT, will offer shares at a price
range of 9.65-10.40 baht (20p-21p)
each, valuing the total deal at up to
18bn baht (369.1m), Tescos Ek-
Chai Distribution System unit said
in a statement. At that price, the
fund would have a yield of 6.5 to
seven per cent per year.
That yield would compare with
8.14 per cent for both the CPN
Retail Growth Leasehold Property
Fund, which owns three malls and
an office tower, and movie theater
owner Major Cineplex Lifestyle
Leasehold Property Fund, accord-
ing to figures from the Asia Pacific
Real Estate Association.
Tesco launches float of its Thailand
property fund to raise up to 369m
PROPERTY
BRITISH landlord Segro said yester-

day it has sold a portfolio of five
non-core industrial estates to funds
owned by Ignis Asset Management
for 80.2m.
The sale is part of the companys
plan to focus its UK multi-let indus-
trial portfolio on London and
South East.
The sale of these assets demon-
strates that, despite the uncertain
economic environment, investor
demand for industrial assets
remains resilient, Phil Redding,
Segros chief investment officer,
said in a statement.
The sold portfolio -- with estates
located in Fareham, Southampton,
Bristol, Crawley and Portsmouth --
has total lettable space of 74,734
square metres, said Segro.
UK Commercial Property Trust,
one of Ignis funds that is buying
the properties from Segro, said it
continues to look for acquisitions
to boost its industrial portfolio.
This transaction fits well with
our strategy of acquiring good
quality assets that, particularly in
these uncertain economic times,
both complement our existing
portfolio and offer strong, defen-
sive income characteristics, said
UKCPT chairman Christopher Hill.
Segro, whose portfolio comprises
5.4bn of predominantly industrial
and warehouse assets, will release
its full-year results this morning.
The company last updated the
market in November, when it said
its vacancy rate had dropped to
10.2 per cent from 11.4 per cent in
June.
Segro banks 80m
through selling off
industrial estates
BY HARRY BANKS
PROPERTY
JONES Lang LaSalles industrial and

logistics team has been advising Segro
on its 1.6bn disposal programme,
including yesterdays sale, with Philip
Marsden leading the team. Marsden,
director of capital markets, is regarded
as one of the UKs top investment advis-
ers and in October was also handed a
second role as managing director of
JLLSs Europe, Middle East and Asia
corporate finance team. A former part-
ner at King Sturge, which merged with
JLLS in May, Marsden has been
involved in the creation of several sig-
nificant funds and investment vehicles
for a variety of clients in recent years,
including Scottish Widows, Aviva and
Legal & General. JLLSs industrial team
transacted more than 26m square feet
of space across the UK last year and
also completed the largest number of
leasing deals of all industrial agents.
PHILIP MARSDEN
JONES LANG
LASALLE
Segro boss David Sleath has sold 80m of property assets
MEET THE ADVISERS
DANISH brewer Carlsberg yesterday
warned its operating profits will be
flat in 2012, hit by declining beer
markets in northern and western
Europea while its biggest market,
Russia, will show a slow recovery.
The worlds fourth largest brewer
said yesterday it expects the Russian
beer market to return to modest
growth this year after a three per cent
fall in 2011 in the wake of big tax
hikes, high inflation and regulations.
The group, which brews Baltika,
Tuborg as well as Carlsberg beers,
makes nearly a third of its sales in
Russia with a market share of close to
40 per cent, and expects the worlds
fourth biggest beer market to start
recovering in 2012.
The group said fourth quarter oper-
ating profit rose to 1.83bn Danish
crowns (205.6m) from 1.13bn a year
earlier, but added 2012 underlying
operating profits will be flat.
Group sales rose to 14.85bn crowns
in the fourth quarter from 13.4bn a
year earlier.
Fizz to fall out
of Carlsberg
profits in 2012
CONSUMER
ANALYSIS l JJB Sports PLC

p
12.50
12.00
11.50
11.00
10.50
11.50
20 Feb
DIVESTMENTS will rise to a value of
250bn throughout the world in
2012, Deloitte predicted yesterday, as
companies spin off non core assets to
bolster their balance sheets.
The total value of the spin-offs
would represent a staggering 92 per
cent rise from last year, when the
total came to 130bn.
Investor appetite for spin-offs is
growing, often because major auster-
ity measures have an adverse effect
on companies plans for growth,
commented Ryan Mendy of invest-
ment adviser The Spinoff Report,
which co-wrote the study.
Boards are being pressured by
increasingly vocal shareholders,
Mendy added, as investors demand
greater transparency and share-
holder value.
Unless heavily incentivised, both
institutional and private investors
are more and more unwilling to aid
traditional-style corporate restruc-
turings [such as IPOs] on yet to be
proven strategies, he said.
This is evidenced by the flurry of
increased corporate spin-off activity
in key sectors such as basic materials
and consumer good sectors.
Companies in Europe have rapidly
spun off arms so far this year, with
10.5bn in divestments already.
And a further 131bn in spin-offs
from corporations in Europe wait in
the pipeline, the research claims.
In terms of sectors, nearly a quar-
ter of divestments this year will be
made by basic materials firms, deal-
ing with metals, mining, minerals
and resources, Deloitte said.
This sector is active due to the
cyclicality of fully valued businesses
within the sector and the current
high price of commodities, it said.
And over a fifth, or 22 per cent, of
activity will come in the consumer
goods and services sector, according
to the analysis of the pipeline.
The current macro European
squeeze on the retail and service sec-
tors is pressuring companies to
break-up some divisions, as manage-
ment works to deliver shareholders
long-term goals, the report said.
Companies are increasingly
assessing their businesses and com-
ing to the conclusion that with a lit-
tle help from the parent entity,
individual divisions can perform
much more efficiently as standalone
entities.
THE GOVERNMENT is to pay compa-
nies and charities to improve
prospects for young unemployed peo-
ple, deputy PM Nick Clegg will
announce today.
Firms will be able to bid for con-
tracts worth up to 2,200 for every
young person that they provide with
skills for the jobs market.
The 126m of state funds will be tar-
geted at 55,000 specific Neets 16
and 17 year olds not in education,
employment or training.
The high risk group consists of
teenagers with no GCSEs at grade C or
above. Firms will be paid extra funds if
the youths subsequently stick with
training programmes or hold down
jobs. Sitting at home with nothing to
do when youre so young can knock
the stuffing out of you for years, Clegg
will state today.
It is a tragedy for the young people
involved a ticking time bomb for the
economy and our society as a whole.
Getting inactive teenagers back
onto their feet is a task the govern-
ment cannot do alone Clegg argues.
Thats why today I am calling on
charities and other organisations at
the coal face to work with government
to help tens and thousands of lost
teenagers onto a brighter path, he
will say.
Over one million young people are
unemployed in the UK according to
official statistics, although students
seeking work are included in the fig-
ures.
Government to pay firms and charities
to get jobless teenagers back on track
THAILANDs economy crashed in the
final quarter of last year, with fresh
data revealing a contraction of 10.7
per cent compared to the previous
three months.
Devastating floods caused the
economy to plummet by more than
in either the 2008-09 global crisis or
the Asian financial crisis of the late-
1990s, Capital Economics said yester-
day.
Capital expects a further cut in
interest rates, by 0.25 per cent, as
authorities aim to help the economy
bounce back.
We still forecast that Thailands
economy will expand by 4.5 per cent
this year, economists added.
The final quarter figure showed a
nine per cent dip in GDP compared to
a year earlier. In the three months to
September, by contrast, the economy
had expanded by 3.7 per cent.
For the whole year, growth aver-
aged just 0.1 per cent, after being hit
by the floods.
Thailand GDP decimated
by 2011s heavy flooding
ASIAN ECONOMY
THE ECONOMIC squeeze on house-

holds caused nearly half of UK adults
to reduce or cut their savings over
the past year, new research claims.
A survey from the Money
Supermarket website showed that
the main reason for reducing saving
activity was to fund everyday life.
Of those who have reduced sav-
ings, 18 per cent cited the need to
pay off debts such as personal loans
or credit cards.
The tough economic situation has
also meant that the publics spend-
ing habits are changing, the report
argued.
The majority of respondents said
they have cut down on eating out,
buying new clothes and going on
holidays.
One sixth of Britons have stopped
saving altogether, the survey found.
The east Midlands and the north
west were the top regions where
most people had stopped or reduced
their savings.
Half of the UK either cut
or quit saving last year
UK ECONOMY
Divestments
to soar 92pc,
says Deloitte
BY JULIAN HARRIS
M&A
BY JULIAN HARRIS
EMPLOYMENT
News
Im not too worried yet. There are lots of other
pressing issues in the financial world that need
to be resolved as soon as possible for
example the Eurozone crisis.
MIKE SUNLEY | LEXINGTON
www.RateSetter.com Customer Phoneline: 08442490115
In association with RateSetter: A better way to Save and Borrow, Peer to Peer
* These views are those of the individuals below and not necessarily those of their company
GEORGE LYLE | ECS ZE LIM | LINKLATERS
To be honest I havent thought about it very
much. Obviously its a concern as Ive read
about it and seen it on the news, but the
question is how much of what we hear
is the truth?
At the moment I am not particularly worried. The diplomats will get involved and will sort something out. I dont
think they will let it escalate to anything dangerous.
JAPAN logged a record trade deficit
with China in January as exports
dropped by a fifth, underscoring con-
cerns about how sharply China is
slowing and its ability to buffer a frail
global economy against European
turmoil.
The 20.1 per cent annual slump in
exports to China, Japans main export
market, condemned Tokyo to a record
monthly trade deficit, stark evidence
of the pain from a firm yen, the global
slowdown and fuel imports to make
up for idled nuclear plants.
Japans shortfall with China was
587.9bn yen (4.6bn), 40 per cent of the
total trade deficit for January,
Japanese finance ministry data
showed.
While the drop in exports was exac-
erbated by an early Lunar New Year
holiday hitting shipments of steel and
other manufacturing inputs, it was
still the fourth straight month the
Japanese exports to China have fallen
in annual terms.
Chinese authorities may already be
worrying about weakening demand,
said Mari Iwashita, chief market econ-
omist at SMBC Nikko Securities, point-
ing to Saturdays policy easing with a
50 basis point cut in banks reserve
requirement ratio, the amount of cash
banks must hold in reserves.
The Chinese Lunar New Year holi-
day, which fell in late January this year
but in early February last year, pushed
down what was already declining
demand in China.
Concerns over Chinese slowdown after
imports from Japan slump by a fifth
BY HARRY BANKS
ASIAN ECONOMY
The Chinese Lunar New Year fell earlier in 2012, widening nearby Japans trade deficit in January Picture: GETTY
CITY VIEWS: HOW WORRIED ARE YOU ABOUT THE IRANIAN NUCLEAR
THREAT? Interviews by Phoebe Torrance
W W W . C I T Y A M C A R E E R S . C O M
INTRODUCING THE NEW JOBSITE FROM CITY A.M.
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MINER Rio Tinto yesterday unveiled a
$518m (327m) plan to pioneer the use
of driverless trains in Australia in a bid
to ramp up its production.
The company, which already has dri-
verless trucks, plans to run fully auto-
mated trains across its 1,500 km (930
mile) iron-ore rail network in north
west Australia from 2014, to help boost
output 60 per cent by 2015.
The re-fitted trains will be operated
like a space mission from a control
room in Perth, 1,500 km away, from
where Rio now runs the driverless
trucks.
This is not just about job losses.
Thats not what this is about. This is
about us remaining competitive, said
Greg Lilleyman, president of Rio
Tintos Pilbara operations.
Rio says it wants to avoid forcing
workers to toil beneath the scorching
heat of the Pilbara, a desert region that
ranks among the worlds richest iron
ore precincts, but automation also
enables it to overcome a shortage of
skilled labour.
The shortage has been fuelled by a
record boom in mining and energy
investment, with $230bn worth of
projects underway or approved in
Australia.
Salaries have skyrocketed to the
point where a truck driver can earn
more than $100,000 a year.
At least half of Rio Tintos 500 train
drivers may lose their current jobs,
with the rest to be used on about one-
fifth of the network that will still need
drivers.
Rio said no one will be laid off as it
aims to retrain workers for new roles.
Rio has long dreamed of automat-
ing its trains, but put the plan on hold
during the financial crisis in 2008
when it struggled with a massive debt
burden from its takeover of Alcan.
Other miners, including BHP, are
watching how Rios experiment pans
out and have yet to follow suit.
Rio says it is still expanding its over-
all Pilbara workforce and will need
thousands of new workers, on top of
the 10,500 it already employs, to boost
iron ore production to 353m tonnes a
year by 2015.
Rio Tinto aims
for driverless
trains growth
BY HARRY BANKS
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BRITISH construction group Kier
has won a 100m contract from
Frances EDF to prepare the
ground for construction of a new
nuclear power station in the west
of England.
Kier said in a statement that the
contract to carry out site works for
the Hinkley Point C nuclear power
station, which is due to provide six
per cent of Britains energy needs,
would create 350 jobs.
Kiers announcement confirms
a deal was first announced as part
of Prime Minister David
Camerons meeting with French
President Nicolas Sarkozy last
week.
Under deals
unveiled by the lead-
ers, EDF, Areva and
Rolls-Royce will co-
operate in developing
new nuclear power
plants in Britain.
The contract will
include building
the required infra-
structure and
landscaping the
area in prepara-
tion for the work on the plant to
start.
EDF is taking the lead in build-
ing Britains next generation of
nuclear reactors after buying
British Energy in a 12.4bn deal
three years ago.
Kier Group chief executive Paul
Sheffield (pictured right) said
after yesterdays announcement:
We have an excellent track
record in the nuclear
industry and enjoy a
long-standing relation-
ship built over many
years of working togeth-
er in joint venture.
BY HARRY BANKS
CONSTRUCTION
ANALYSIS l Rio Tinto PLC

p
3,800
3,750
3,700
3,650
3,600
3,706.00
20 Feb
Roche gets
nod for skin
cancer drug
PHARMACEUTICALS giant Roche said
yesterday that the European Union
had approved Zelboraf, which repre-
sents a new treatment option for
patients with the deadliest form of
skin cancer.
The go-ahead, expected by
investors after Roche flagged it as
recently as December, follows one in
the United States last August.
The new drug is given as a twice-
daily pill and is designed to be used
alongside a companion diagnostic
test, also from Roche, that identifies
which patients have a specific genet-
ic mutation that means they will
benefit from the treatment.
The gene sequencing technology,
which Roche is targeting with a bid
for San Diego-based Illumina, is cen-
tral to medicines future as it allows
researchers to better predict how
patients will respond to a drug.
Coupled with strong study results
from experimental breast cancer
treatment pertuzumab, Zelboraf
underscores Roches commitment to
targeted medicines.
Roche said: Approval is important
as Zelboraf significantly improves
patient survival and exemplifies the
benefits that Roches personalised
approach to medicine can provide for
patients, physicians and society.
As well as the USA and the EU,
Zelboraf has also recently been
approved in Switzerland, Brazil,
Israel, Canada and New Zealand.
Australia is considering approval.
BY HARRY BANKS
PHARMACEUTICALS
NEWS | IN BRIEF
International Ferro loses less
South Africas International Ferro
Metals yesterday said it had narrowed
its losses in the final six months of 2011.
The net loss after taxation dropped from
Zar107,000 (8,700) in 2010 to
Zar92,000. But the Aim-listed company
reported production of ferrochrome
down 15 per cent over the period. Chief
executive Chris Jordaan said: The com-
bination of solid operations, active mar-
keting to a broader range of customers
and cost savings should place IFL in a
healthy position to take full advantage of
the robust long-term outlook for stain-
less steel.
Workers occupy Arcelor plant
Workers at an idled ArcelorMittal steel
plant in north east France occupied the
site yesterday, seeking to put their
plight on the political map ahead of a
presidential election where industrial
decline is a central theme. Some 200
workers invaded management offices
at the factory in Florange, in the
Moselle region close to Belgium and
Germany, after ArcelorMittal
announced last week it was prolonging
the temporary shutdown of its two
blast furnaces.
Alibaba Group takes $3bn loan
Chinese e-commerce firm Alibaba
Group was yesterday set to sign a
$3bn (1.9bn) loan it plans to use to
take private its Hong Kong-listed unit,
Alibaba.com. Alibaba Group, which is
40 per cent-owned by Yahoo, is look-
ing to take Alibaba.com private in a bid
to strengthen founder Jack Mas con-
trol of his e-commerce empire.
News
AVIATION chiefs in India yesterday
summoned executives from strug-
gling airline Kingfisher to explain a
string of flight cancellations.
The directorate general of civil avia-
tion wants answers after 32 out of the
240 flights that Kingfisher operates
each day were cancelled over the
weekend.
Loss-making Kingfisher has been
denied financial assistance from the
Indian government and in a state-
ment warned that further cancella-
tions were likely.
Civil aviation minister Ajit Singh
said: It is a very serious matter, we
recognise it and DGCA has called
Kingfisher to find out whats going
on.
Kingfisher has so far failed in
efforts to get fresh equity capital.
Banks own about a quarter of its
shares after the companys debt was
restructured early last year.
The airline is also embroiled in an
fight with the government over taxes.
Kingfisher lost 4.4bn rupees
(656.7m) in the quarter that ended
in December.
Kingfisher summoned to
explain scrapped flights
Kingfisher has been struggling to secure new funding Picture: GETTY
BY JOHN DUNNE
AVIATION
Kier wins 100m contract for EDF

nuclear power plant groundwork
Atlas Genetics
Neil Butler has been appointed as chair-
man of Atlas Genetics. Butler, who
joined the board in November, is the for-
mer chief executive of Vivacta and the
former business development director of
Quester Capital. Between 1999 and
2004, he was CEO of Oxford Biosensors;
prior to that, he was VP, performance
films at Rexam.
Idex Recruitment
Idex, which specialises in general insur-
ance and financial services recruitment,
has hired David Carr as a managing
partner. Carr formerly worked at Hays,
where he was the UK director responsi-
ble for the insurance business.
Unitech Corporate Parks
Aubrey Adams will step down as chair-
man of Unitech Corporate Parks, the
Aim-listed commercial real estate com-
pany focused on India, on 1 March.
Adams, who was recently appointed as
global head of property in the global
restructuring group of RBS, will remain
on the board of UCP as a non-executive
director, and as a non-executive direc-
tor of British Land. He will be replaced
as chairman by Donald Lake, who has
been a non-executive director of UCP
since the companys IPO in 2006.
Permira
The private equity firm has appointed
Mubasher Sheikh as head of its health-
care team. Prior to joining Permira,
Mubasher was a partner at McKinsey
& Co, where he led the global pharma-
ceutical research and development
practice. In this role, Sheikh also ran
McKinseys European healthcare pri-
vate equity and principal investing
industry.
Savills
David Poole has been appointed to lead
Savills valuation team in France, based
at the firms Paris office. Poole started
his real estate career at DTZs UK busi-
ness, before relocating to the companys
Paris valuation team, where he became
director of DTZ Eurexi in 2006.
Move With Us
The residential property specialist has
appointed Anthony Radford as prod-
uct development director. Radford
joins from GE Capital and previously
worked at Halifax, Bank of Scotland
and Legal & General.
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
European markets
rise on Greek talks
E
UROPEAN shares closed at a
near seven-month high yester-
day as Eurozone finance minis-
ters edged closer to a
long-awaited agreement on a rescue
package for Greece.
The pan-European FTSEurofirst
300 index of top shares rose 0.7 per
cent to 1,090.95 points. Volume was
low, at 69.5 per cent of the 90-day
average, with Wall Street closed for a
holiday.
We have had quite a good run
year-to-date and a lot of it is premised
on Greece getting its bailout. There
may be another day of euphoria but
then we will get back to normal and
could sell off a bit, said Michael
McNaught-Davis, head of internation-
al equities at Scottish Widows.
Eurozone finance ministers
inched towards approving a second
bailout for debt-laden Greece that
will resolve the Greek governments
immediate repayment needs.
Stocks rose almost across the
board. Banks, many of which have
significant exposure to Greece and
other peripheral Eurozone countries
and have taken a hit on their balance
sheets,were among the biggest gain-
ers.
Eurozone banking stocks rose two
per cent, and are now up 18 per cent
in 2012. As well as more confidence
that the Eurozone debt crisis is being
contained, the sector has gained
from the European Central Banks
long-term refinancing operation, pro-
viding cheap funding.
While there remains broad scep-
ticism that this bailout will effective-
ly draw a line under the long
running Greek debt saga, it would
appear that markets believe that for
now, an imminent messy default sce-
nario could well be averted, said
Michael Hewson, senior market ana-
lyst at CMC Markets.
Mining stocks gained after top
metals user China cut the amount
banks must hold in reserve, which
should allow more lending to boost
its economy. Chinas central bank
effectively made available an estimat-
ed $55.6-$63.5bn extra cash for lend-
ing, which could boost demand for
metals.
The STOXX Europe 600 Basic
Resources Index rose 1.6 per cent, tak-
ing its gain in 2012 to 16 per cent.
McNaught-Davis said he was stick-
ing with more defensive sectors such
as healthcare, consumer discre-
tionary and consumer staples,
adding he had warmed up a bit
towards cyclicals and was less
underweight on industrials than he
had been, including buying German
carmaker BMW.
A
SURPRISE easing in Chinas
monetary policy drove Britains
FTSE 100 within striking dis-
tance of a seven and a half
month closing high as miners rallied
on the prospect of revived demand
from the worlds most voracious con-
sumer of raw materials.
Miners were the top gainers as
Londons blue chip index climbed
40.18 points, or 0.7 per cent, to end on
5,945.25 yesterday.
China said at the weekend it was
cutting the amount of cash banks
must hold in their reserves in another
move to try to kickstart slowing
growth.
Chinas reserve requirement ratio
cut was a surprise to the market but
supports our economists' belief that
the authorities are more concerned
about growth than inflation, Nomura
said in a note.
Societe Generale said: The cut will
release around Chinese Yuan
Renminbi 400bn into the banking sys-
tem and will help ease banks liquidity
situation, placing downward pressure
on interbank interest rates.
It added that it was expecting three
more cuts in the reserve requirement
ratio by a total of 150 basis points
by the end of the year.
Investors positioned themselves not
only for a near-term boost in metal
demand but also for a rate cut soon.
We typically see a knee jerk bullish
move in the miners as a result of any
Chinese easing and today's reaction
has been no different, a London-based
trader said.
Insurers and banks, sectors with the
largest exposure to Europes sovereign
debt crisis, also pushed ahead in antic-
ipation of a deal being struck to rescue
Greece for a second time.
Although doubts remain over the
ability of Greece to carry through the
agreed austerity program, Eurozone
finance ministers are expected to
approve a second bailout for Greece
yesterday to try to draw a line under
months of uncertainty that has shak-
en the currency bloc.
Henk Potts, equity strategist at
Barclays Wealth, described easing con-
cerns over Greece, supportive US eco-
nomic data and the readiness of
policymakers in emerging markets to
act to maintain robust growth levels as
a powerful mix of positivity.
Investors can once again focus on
the fundamentals, which are very
good corporate positions with unde-
manding valuations.
Those valuations have driven a spike
in M&A activity recently, with Misys
up 6.6 per cent after Vista Equity
Partners outlined an all-cash deal for
Misys that would scupper an agreed
merger between the British banking
software group and Swiss Temenos.
Weir Group, which is in a bidding
war for Australian mining equipment
firm Ludowici with Danish engineer-
ing company FLSmidth, climbed 6.6
per cent ahead of results next week.
Short interest in Weirs shares
spiked significantly since August to
about 35 per cent of stock available for
loan, compared with around an aver-
age of nine per cent for the capital
goods sector, according Dataexplorers,
leaving investors scrambling to cover
positions as the share price gains
upward momentum ahead of results.
Weir has just underperformed the
sector by 18 per cent, and yet the
underlying growth dynamics remain
unchanged, BofA Merrill Lynch said
in a note.
Perceived defensive stocks filled the
FTSE fallers list, with drugmaker Shire
down 1.1 per cent, Imperial Tobacco
0.8 percent lower and utility Severn
Trent off 0.7 per cent as investors
turned to riskier assets.
Chinas monetary easing puts
FTSE close to the 6,000 level
THELONDON
REPORT
THEEUROPEAN
REPORT
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Ladbrokes
140
130
135
145
150
155
125
Dec Jan Feb
p
154.50
20 Feb
LADBROKES
UBS rates the betting group buy and has lifted its target price by 5p to
175p. The firms full year results were above forecasts, with strong growth in
UK retail, which the broker says will continue this year thanks to double-digit
growth at betting machines and a boost from Euro 2012. UBS expects to see
Ladbrokes in an even stronger position next year once a switch to digital
operations is complete, though the upgrade will dampen margins this year.
ANALYSIS l Anglo American
2,800
2,400
2,600
3,000
2,200
Dec Jan Feb
p
2,690.00
20 Feb
ANGLO AMERICAN
Citi has a neutral rating on the miner and a target price of 30. The
broker has trimmed its earnings forecasts by three per cent in the wake
of Anglos 2011 results, in light of rising copper and metallurgical coal
costs, and could cut further given the strength of the South African rand.
Citi also notes that the firms dividend is uncompetitive in the commodi-
ties sector, with yields of just 1.8 per cent last year.
ANALYSIS l Capita
640
620
630
650
660
670
610
Dec Jan Feb
p
656.50
20 Feb
CAPITA
JP Morgan rates the outsourcing group overweight and has a target price
of 860p. The broker hopes to see a more upbeat outlook when the firm
reports full year results tomorrow. JP Morgan thinks Capitas revenue falls in
the wake of the 2010 election and government spending cuts should start to
level off soon. It notes that the firm has won 1.3bn worth of contracts in
the first 10 months of 2011 more than double the previous years haul.
Royal Bank of Scotland
RBS has appointed Stuart Dean as head of
healthcare in the corporate and institutional
banking (CIB) team. Dean has worked at RBS
for more than 11 years in the banks structured
finance division in the south of England and
London. Before joining RBS, he spent two
years at the John Lewis Partnership, which he
joined from KPMG. In his new role, Dean will
lead a team of healthcare finance specialists
and provide sector support to RBS CIBs
regional network across the UK.
News
p
21 Nov 9Dec 3Jan 10Feb 23Jan
6,000
5,200
5,000
5,400
5,600
5,800
ANALYSIS l FTSE
5,945.25
20 Feb
20
The Forum
CITYA.M. 21 FEBRUARY 2012
cityam.com/forum
ANY changes to the NHS are always going to pro-
voke controversy. But in a healthcare landscape
characterised by changing health needs, rapid
technological innovation and rising patient
expectations, reform is vital if the NHS is to meet
the challenges of the coming decades.
That is one of the reasons that these proposals
are following in the footsteps of reforms put for-
ward by every health secretary since Ken Clarke,
with the sole exception of Frank Dobson. Each
reform has been opposed with the same zeal by
most of the opponents of the governments Bill.
The British Medical Association (BMA), for
example, has opposed most pieces of health
reform since the war, including the formation of
the NHS. It seems perverse that the BMA has
made such a stink about non-attendance at a
meeting about the implementation of a reform
they oppose. Its a little like a Manchester United
fan complaining about non-invitation to a meet-
ing about the future of Manchester City.
Theres good policy sense behind the devolv-
ing of power from managers in Primary Care
Trusts to local GP consortia. In essence, the
reforms involve transferring power from man-
agers to doctors and nurses. Giving GPs more
power over commissioning empowers clinicians,
who understand patient needs and health needs
and are in direct contact with patients, rather
than relying on remote bureaucrats.
Moving commissioning power to the front
line, putting the power in the hands of the
health professionals who see patients regularly
can only strengthen the NHS, with changes to
commissioning helping to put the patient at the
heart of the process. It will also help to align clin-
ical decisions and their financial consequences.
That decisions about local healthcare should
be made by local doctors, rather than adminis-
trators, in no way resembles the revolutionary
change that many warn about. In many ways, it
is a continuation of the Tony Blair/Alan Milburn
reforms. Theres compelling evidence from
those experiments with practice based commis-
sioning that GP commissioning can deliver bet-
ter quality care for patients, while avoiding
unnecessary and expensive hospital admissions.
Opponents of reform also object to competi-
tion and contestability. That is dogma over-riding
both experience and practical necessity. The pri-
vate sector and the third sector clearly have an
important role to play in delivering innovative
and cost effective services to the NHS.
Competition and contestability will increase the
choice available to patients and to commission-
ers and enhance the service provided to patients.
Surely readers of City A.M. do not need to be
persuaded that competition and contestability,
rather than monopoly provision, is a good thing
that will improve patient outcomes. In opposing
the role of private and third sector providers
playing a role in the NHS, opponents of health
reforms are opposing the policies of the last gov-
ernment as much as they are opposing the poli-
cies of this government.
The NHS cannot be preserved in aspic if it is to
meet the needs of 2012, which are very different
to the needs of 1948. People are living for longer,
the cost of care is rising and patients also have
higher expectations than ever before.
NHS reforms are necessary to ensure that it
continues to prosper in a fast-changing environ-
ment. Vested interests should not be able to
wield a veto. Just as the NHS evolved in the past,
it needs to continue to evolve so it can continue
to deliver first class services that put the patient
at the heart of the process.
David Skelton is deputy director of the independent
think tank Policy Exchange. You can follow him on
Twitter @djskelton
Is the NHS reform bill a cure
for Britains healthcare ills?
DAVID SKELTON
YES
WHEN talking politics, Im always reluctant to
use medical analogies; it can seem rather pre-
dictable from someone who works for an organ-
isation like the Royal College of Nursing (RCN).
However, when talking about the governments
Health and Social Care Bill, the dramatic blue-
print to reform the NHS, the analogies seem
more apt. Put simply, the Prime Ministers diag-
nosis is correct but the treatment is very wrong
indeed.
The government is right when it says that the
NHS needs to change. Of course it does. Our
population is growing, its getting older and
more of us than ever before are living with
medical conditions that last decades. The way
we look after patients now, with a focus on hos-
pital care, just wont work. Well need to move
care into our communities and, in some cases,
our homes. The NHS does need change. It needs
to evolve with the times. But it does not need
this bill.
Only last month, the RCN which represents
420,000 nursing staff in the UK moved to
oppose the bill and were now calling for it to be
withdrawn. Why? Because not only does it fail
to fix the problems posed by our changing
health needs, but it also stands to do real dam-
age to our healthcare system and the patients
that use it.
Take the role of competition, which the gov-
ernment wants to increase dramatically in the
new NHS. The RCN does not oppose competi-
tion in principle; competition has been part of
the NHS since it was founded in 1948. The prob-
lem lies with just how much competition the
government wants to inject into the NHS. The
more that services are told to compete with
each other, the less joined-up a patients experi-
ence will be. The newly-diagnosed cancer
patient doesnt want health providers that com-
pete with one another, but services that cooper-
ate and share information.
The bill also spells out changes to the private
patient income cap, which is the limit to the
number of private patients that any organisa-
tion can treat. The government wants to raise
the cap to 49 per cent, considerably higher than
it is now. Whilst this may seem like a technical
change, the effect on patients could be very real
indeed. If NHS organisations shift their focus
away from delivering good care and finding sav-
ings that dont impact on the frontline, and
instead concentrate on how to cater for the pri-
vate patient market, NHS patients may suffer.
The RCN has sought to engage with the bill at
every stage. Weve consulted with our mem-
bers, weve outlined our main concerns, weve
given evidence to parliamentary committees
and weve even hosted listening exercises
with Andrew Lansley. It was after a year of
working constructively with the government,
and not seeing the changes that we were asking
for, that we felt we had to move to oppose this
bill. Put simply, the turmoil of continuing with
this bill is now much greater than the turmoil
of stopping it. The government may have dis-
missed our concerns as vested interests, but
our only vested interest is making sure that the
NHS delivers for patients everywhere.
This bill is contentious for a reason. When a
list of opposing organisations includes the RCN,
the British Medical Association, the Royal
College of General Practitioners, and many oth-
ers, you have to question whether youre doing
the right thing. We want the NHS to evolve, we
understand the need for change, but this bill is
the wrong way of doing it and doctors, nurses
and, most importantly, patients will suffer.
Dr Peter Carter is the chief executive and general sec-
retary of the Royal College of Nursing.
DR PETER CARTER
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
21
Insolvencies are
a natural feature
of a functioning
market economy
Keeping zombie
companies alive
is a scary policy
C
OMPANY insolvencies are a sign of a
healthy economy and preventing com-
panies from failing stifles the innova-
tion this country needs to grow.
Insolvencies, together with mergers and
acquisitions, new company registrations,
recruitment, and redundancies are, strange
though it may seem to some, a sign of a
healthy economy.
Analysis of the number of new companies
created versus the number of company
insolvencies over the last ten years shows a
pattern. After a lag of two years, more new
registered companies resulted in more insol-
vencies. The rate of growth, or indeed fall, in
the UK GDP followed the same pattern as
new company registrations. A period of rela-
tively high growth in GDP (and in this time
of low growth the term high is definitely
relative) was accompanied by a surge in new
company registrations, followed by an
increase in the number of corporate insol-
vencies. Equally telling is that 2010 and
2011, a period of virtually no net growth in
GDP, has initially seen a drop of 21 per cent
in company registrations, followed by a peri-
od of virtually no change in the number of
corporate insolvencies.
There are, of course, some major corpo-
rate insolvencies that indicate fundamental
problems in the economy and in particular
a lack of consumer confidence as can be
seen in the recent spate of large high street
retailers going to the wall but for many
years it has been evident that the single
biggest cause of business failure is bad man-
agement.
Low interest rates for corporate loans or
overdrafts enable poorly performing compa-
nies to struggle on, covering their relatively
low financing charges, while not creating
reserves that will be required when business
picks up again and they will need to finance
growth. We will see, therefore, when the
rate of growth in GDP starts to rise again, an
increasing number of company insolvencies,
not resulting from a recent increase in new
company registrations, but from a lack of
the resources needed to fund an increase in
demand for their products.
Similarly, the lack of resources available
now to fund research and development and
innovation will restrict growth when the
opportunities to develop come around
again. Also, that banks are allowing poorly
performing managers to remain in business
so long as they are merely servicing their
debts is failing to force those that who have
the talent to be innovative and imaginative.
Even good managers, in these circum-
stances, have to spend too long fire-fighting,
micro-managing costs or simply treading
water. This is curbing their entrepreneurial
tendencies.
Companies that take risks grow and some-
times fail. In the current environment there
is too little growth, risk-taking and innova-
tion thus relatively few companies are
going bust. By propping up companies that
may be in difficulties we may actually be sti-
fling the innovation the country needs for
us to grow and trade our way out of the cur-
rent mire.
John Alexander heads Carter Backer Winters
corporate recovery and insolvency department.
Water pipedream
[Re: Time to invest in infrastruc-
ture we actually need, yesterday]
In 2006, the Institution of Civil
Engineers (ICE) studied the poten-
tial to transfer water using the
established river network. At the
time this was mistaken in media
reports as recommending a
national water grid but that was
not what ICE proposed. ICE con-
cluded, a water grid would be
extremely costly and an unjustified
venture. Water is a very heavy
resource to move around and it
cannot be thought of in the same
way as distributing electricity.
The solutions to drought stare us
in the face. They start with saving
water at home, at work and in
industry and farming far better
than we do now. There is huge
scope to do this at all times, not
just when the government holds
crisis water summits. Lets exhaust
all those untapped actions before
investing in a pipe dream.
Paul de Zylva, head of nature,
Friends of the Earth
American pipes
Back in 1984 when I was work-
ing overseas I was friendly with
an American professor. He told
me that parts of the USA export
water to those states that only
have little water; in other words,
it was normal for one state with
a surplus of water to sell it to a
state with very little. It was poli-
cy, not rocket-science.
Roderick Archer
Want to respond?
email: theforum@cityam.com
RAPID RESPONSES
BY ANTHONY J. EVANS
The Forum
S
OME readers may
be familiar with
recent attempts to
make US govern-
ment spending plans eas-
ier to grasp by converting
them to a representative
family budget. Having
recently returned from a
weekend teaching in Croatia, I want to use it as a
European example, hopefully shorn of the partisan emo-
tions that can arise when discussing the UKs finances.
Lets take a typical Croat called Nikica. Assume that
Nikica earns 123,051 kuna (kn), roughly 13,508, a
year. If Nikica is budgeting like the Croatian govern-
ment, this year he will have spent 133,708kn, forcing
him to take on 10,657kn of new debt, in addition to his
outstanding debt of 161,563kn. Prime Minister Zoran
Milanovic and his minister of finance Slavko Linic have
a plan to halve Croatias budget deficit if Nikica did
that, hed have cut his spending by just 4,600kn.
These analogies are important because they democ-
ratise taxation they help the public understand
whats being done in their name. Croatia has a budget
calculator online, the Proracunski kalkulator created by
Marko Rakar (http://proracunskikalkulator.com). It is
an elegant and well-designed interface for the public
to explore solutions to the budget crisis, and I wish
there were something comparable for the UK.
Rakars goal is to increase economic literacy by get-
ting people to realise that tax revenues are their
money, and grasp the impact of rival spending plans.
Every figure is converted into a representative income
so that people can see how much tax they pay and
where it is spent. It generates awareness about the
size of the budget deficit, and the difficulty of reducing
it. And as people understand more about public
finance, demand for fiscal conservatism increases.
This is a popular tool in Croatia, with over 100,000
users in the build up to the last election (about 5-10
per cent of the total number of internet users in the
entire country). It demonstrates how the internet can
be harnessed to strike the popular consciousness and
make economics relevant to peoples lives.
In 2005, I spent time in Romania conducting inter-
views about public finance reforms. I remember an
economic adviser to the President boasting that his
boss was popular because he treated the publics
money as if it were his own. You mean as carefully as
if it were his own? I enquired. Of course!
Anthony J. Evans is associate professor of econom-
ics at Londons ESCP Europe Business School.
anthonyjevans@gmail.com
www.anthonyjevans.com
A new way to explain
how much they spend
Email: theforum@cityam.com
Twitter: @cityamforum
In association with
Croatian Debt in Household Budget Terms
Croatia tax revenue 123,051,000,000kn Annual family income 123,051kn
Government budget 133,708,000,000kn Money the family spent 133,708kn
New debt 10,657,000,000kn New debt on the credit card 10,657kn
National debt 161,562,000,000kn Outstanding credit card debt 161,562kn
Proposed budget cut 4,600,000,000kn Planned cuts to spending 4,600kn
JOHN ALEXANDER
D
espite every possible effort by
the shorts, euro-dollar refuses
to go down. Over the past four
weeks the pair has traded in a
narrow $1.3000-$1.3300 range,
rebounding every time it has
broached the key $1.3000 level. One
reason for this remarkable resilience
is the persistent skew in positioning.
After a few weeks of reducing in size,
euro shorts have piled back into the
trade and, according to the latest
commitments of trade data from the
US Commodities Futures Trading
Commission, have increased their
bets from -140.6K the previous week
to -148.6K. Although this short posi-
tion remains below recent record
highs, it is nevertheless massive and
creates a combustible environment,
ripe for a short covering rally, while
concurrently making any further
declines in the pair much more prob-
lematic.
Speculative markets, by their very
nature, cannot allow the majority of
participants to be right on the trade.
Large skews in positioning to one side
or the other often presage violent
moves in the opposite direction.
Thats why some market analysts are
beginning to believe that the near-
term risks in euro-dollar may lie to
the upside, especially if the pair can
break above the $1.3320 mark. This
would force many of the long-term
shorts to reconsider their view and
fuel another round of short covering.
The euro negatives are well-known.
Greece remains a basket case and few
serious analysts believe that it can
restructure effectively without even-
tually defaulting on its obligations,
even if it receives a bailout. Yet
though Greece remains the primary
focus of the market, its economic
importance to the Eurozone is minus-
cule its GDP comprises less than 2
per cent of all Eurozone economic
activity. If Greece finally receives its
second bailout the countrys econom-
ic problems will not be solved, but it
may pacify investors for the time
being and shift the focus elsewhere.
Meanwhile support for the euro
has come from an unexpected place
China. Last week PBOC chief Zhou
Xiaochuan pledged that the countrys
central bank will increase its holdings
of euro-denominated assets. Zhou
noted that China has been a consis-
tent buyer of euro assets and will fur-
ther increase its holdings, most likely
through Europes bailout fund. He
added that the euro can become a
bigger and more important reserve
currency.
Zhous comments reaffirmed
Chinas long-standing policy of sup-
port for the euro-dollar, which it con-
siders to be vital to the countrys
political and economic goals. As we
have noted many times in the past,
the Chinese are loath to see a unipo-
lar world in which the dollar stands
as the only reserve currency. They will
likely do everything within their
power to support the euro as a viable
alternative to the greenback.
The Chinese are also providing sup-
port for euro-dollar by loosening
monetary policy once again. This past
weekend the PBOC has cut the reserve
requirement rate by 50 basis points,
signalling an easing of credit condi-
tions for the Chinese banking sector.
Assuming the Greek bailout deal
does not hit any further snags, the
true test of euro strength will come
this Wednesday when the market
gets a glimpse of the latest Eurozone
flash PMI readings for February.
These will provide the most up-to-date
readings of economic conditions in
the region. The market anticipates a
very slight improvement from the
previous month. But if the data sur-
prises to the upside it could provide
the upside catalyst to push the pair
through the $1.3320 resistance level
and fuel a much more substantial
short covering rally.
DIRECTOR OF CURRENCY RESEARCH, GFT
BORIS SCHLOSSBERG
NEAR-TERM EURO-DOLLAR
RISKS MAY LIE TO UPSIDE
facebook.com/fx360 twitter.com/fx360
fx360.com
The contents of this column are provided for general information purposes only. One should consider the appropriateness
of the information in light of their own objectives, financial situation or needs before trading. CD11UK.074.010612
$
Although its been mired in $1.3000-$1.3300
range, a break above $1.3320 could signal a
more substantial rally in euro-dollar
$1.33655
$1.30000
2011 21 15 28th 23 16 Dec Feb 2012
1.38
1.30
1.28
1.32
1.34
1.36
ANALYSIS l Euro-dollar
Oils recent surge
may sink in sands
Assumptions that the only way is up for black gold rest
on an excessively crude analysis, writes Philip Salter
R
ESULTS last week from
Intercontinental Hotels pointed
to a resurgence in bookings out-
side of the beleaguered
Eurozone, so investors in Millenium &
Copthorne will be hoping that the
company can replicate its larger peers
success in areas such as China and the
US. The operations in these areas
should benefit from continuing eco-
nomic growth, so investors might be
well advised to make their reservations
soon to avoid being locked out of
growth further down the line. IG Index
quotes 485.48p-489.92p for
Millenium & Copthorne.
Shares in Gulf Keystone have
soared since the beginning of the year,
easily outperforming the broader
equity market. Investors expect the
Kurdistan-focused oil and gas explorer
to profit from major finds in the
region, while there is also speculation
that the company is being targeted
for takeover by one of the oil majors.
GFT quotes 426.25p-428.00p for
Gulf Keystone.
As far as annual results go, few will
be more eagerly anticipated than
Royal Bank of Scotlands on the
Thursday. From the dizzying heights of
the ABN Amro takeover to the subse-
quent credit crunch, RBS has had a
turbulent run in recent years. With 83
per cent ownership by the state, the
public has a vested interest in the
bank reporting well, but could be dis-
appointed. While the bank continues
to restructure and sell off assets to
boost its capital base, profit is likely to
drop sharply on insurance mis-selling.
ETX Capital quotes 28.17p-28.20p for
RBS.
The FTSE hit a new six month high
yesterday on the back of reduced cap-
ital requirements for Chinese banks
and increased hopes of Greece getting
its bailout money from the EU. This
move higher is seen as a technical
breakout to the upside and could be
followed by further strength. Capital
Spreads quotes a price of 5,650.0-
5,951.0 for the FTSE.
Craig Drake
THE
TIPSTER
TRADERS
HOPING TO
BOOK SUITE
OF PROFITS
The lines of communication out of Iran arent yet entirely closed Picture: GETTY
Wealth Management| Trading
T
RADERS looking at the
recent actions of the theocra-
cy of Iran which confirmed
its ban on the sale of crude
oil to the UK and France on
Sunday might be forgiven for
assuming that the escalating ten-
sions between it and the West are
going to be the biggest factor
impacting the price of Texas light
sweet and Brent crude oil. However,
though war isnt out of the ques-
tion, its far from inevitable and
the global slowdown and Eurozone
crisis could leave those long on
black gold not looking too slick.
A STORM IN AN OIL DRUM
Julian Jessop, chief global econo-
mist at Capital Economics, thinks
although markets have interpreted
recent events as bullish for oil
prices, Irans position looks
increasingly weak and the regime
may now be close to backing
down. Edward Bell, an economist
at the Economist Intelligence Unit,
says the Islamic Republic has little
room to manoeuvre as sanctions
cut deeper. Bell points out that
exports to both the UK and France
only accounted for 60,000 barrels
per day in the first half of 2011
less 3 per cent of Irans total
exports of crude. He think that if
Iran really had wanted to make a
retaliatory statement to the EU
over its own ban on imports of
Iranian oil, it could have stopped
shipments to Greece, Italy and
Spain: the largest consumers of
Iranian crude.
Jessop describes Irans banning
of exports to the UK and France as
essentially an empty gesture. He
also notes that even if Iran does pre-
empt the EU embargo by stopping
sales to other European countries,
the fragility of their economies
means that they may well need less
oil anyway: Indeed, EU consump-
tion of oil has fallen outright in
each of the last five years. He
believes the impact of the Iranian
ban may simply be to ensure that
more of the burden of weaker
demand is felt by Iran than by
other oil exporters.
As the fuel that powers the
engines of global growth, even if oil
continues to rise in the short term
it would upset any recovery in the
medium term. Chris Beauchamp of
IG Index notes a surge in the price
of black gold could be just the
thing to disrupt the rally. In turn,
this would bring down the price of
oil as the engines stutter again.
EVENTS MY BOY
Traders need to keep an eye on the
International Atomic Energy
Agencys (IAEA) visit to Iran and its
upcoming report in March. Bell
says any statement that highlights
Iran had been pursuing nuclear
weapons at some point will raise
tensions in the region and shift
prices upward. On the other hand,
as it did with Libya, the
International Energy Agency (IEA)
may once more release oil to offset
reduced supplies. Events could eas-
ily slip traders up.
Wealth Management | Trading
G
OLD has traded in a channel for
the last month, but despite
this, it remains at a price nigh
on unimaginable 18 months
ago. Although the last month has
been a quiet one for the price of gold,
the metal is still up by around 10 per
cent for the year and is still almost
$200 below the all-time highs set in
September last year, says David Jones,
chief market strategist for IG Index.
He adds that, whenever gold is talked
about there is always vociferous opin-
ion among some that it is a bubble
and all bubbles burst. This is a fair
point but it has also been a regular
argument for at least the last three
years and since then gold has dou-
bled.
Indeed, some have pointed to 1980
for an example of what happens when
gold crumbles and hope to profit
when the same happens this time.
But the current situation is drastically
different. The 1980 high of $860 was
driven by runaway inflation hitting 14
per cent and investors buying gold as
a store of value and to protect their
wealth. At the same time, equities
were at the beginning of the biggest
bull run of a lifetime.
Now, golds attraction is largely its
safe haven status. With haven curren-
cies overheating and debt timebombs
ticking in the majority of developed
countries, gold is seen as a safe place
to put your money.
The bottom fell out of the gold run
when Fed chairman Paul Volcker
aggressively hiked interest rates to try
and curb inflation, in doing so remov-
ing the main reasons to hold gold.
According to David Morrison, market
strategist at GFT, Ben Bernanke could-
nt raise rates even if he wanted to,
and inflation looks likely to stay
ahead of base rates for the foreseeable
future. With central banks in the
developed world printing money, gold
will remain supported and physical
demand is strong central banks are
now net buyers of gold for the first
time in over 20 years, says Morrison.
This doesnt mean that gold will be
stable we should expect volatility in
the price as investors trade in and out
of leveraged positions but anybody
hoping to profit from a gold crash are
going to be disappointed.
FOREX STRATEGIST
JOEL KRUGER
My pick: Looking to sell sterling-yen
Expertise: Technical analysis
Average time frame of trades: 1 day to 1 week
This market has been very well bid over the past several sessions and
while we could indeed be in the process of seeing a major structural
shift, we also cannot ignore the severely overbought short-term tech-
nical studies. The daily RSI has traded up by 80, and should our in
house model permit, we recommend looking to sell rallies into critical
resistance by the multi-week highs at 127.30 for a 123.00 objective.
Stop on close above 128.50.
FOREX ANALYST PICKS
Why not to position for a gold crash
FOREX STRATEGIST
ILYA SPIVAK
My pick: Stay short gold
Expertise: Global macro
Average time frame of trades: 1 week to 6 months
US economic data continues to broadly outperform expectations but
headwinds from a recession in the Eurozone that is likely already in
progress remain regardless of any progress made on the second Greek
bailout this week. On balance, this suggests QE3 bets will be anchored
along with inflation expectations while the safe-haven dollar recovers.
This backdrop bodes ill for gold prices and I will continue holding short,
aiming for a break of $1,714.05 to expose $1,677.05 initially.
QUANTITATIVE STRATEGIST
JOHN KICKLIGHTER
My pick: Short S&P 500 Long euro-Swiss franc and dollar-yen
Expertise: Fundamental and technical analysis with risk
Average time frame of trades: 1 day to 1 week
There is a possibility that the EU could finally pass a major hurdle
with its next Greek vote. The positive outcome could offer a short-
term relief rally, but optimism will be second guessed every step of
the way. Nevertheless, such an outcome would help both euro-Swiss
franc and dollar-yen longs. But, what about the alternative a disap-
pointment? I will stick with the S&P 500 as my risk-aversion setup,
but the entry is moved up to 1,330.
The yellow metal
remains supported,
writes Craig Drake
The wheels arent going to fall off gold Picture: GETTY
ANALYSIS l Gold today
$/oz
23Jan2012 30Jan2012 Feb2012 13Feb2012
1,750.0
1,740.0
1,730.0
1,720.0
1,710.0
1,700.0
1,690.0
1,680.0
1,670.0
1,660.0
ANALYSIS l 1980 gold crash
$/oz
1 Jan 1 Feb 1 Mar 1 Apr 1 May 1 Jun 1 Jul 1 Aug 1 Sep 1 Oct 1 Nov 1 Dec
860.0
820.0
780.0
740.0
700.0
660.0
620.0
580.0
540.0
500.0
460.0
LON GD ONCE FIX AM...........1729.50 -2.50
SILVER LDN FIX AM ..................33.55 0.42
MAPLE LEAF 1 OZ ....................36.16 0.31
LON PLATINUM AM................1648.00 11.00
LON PALLADIUM AM...............693.00 -2.00
ALUMINIUM CASH .................2127.00 10.50
COPPER CASH ......................8369.50 160.50
LEAD CASH...........................2027.00 43.00
NICKEL CASH......................19730.00 -20.00
TIN CASH.............................24195.00 195.00
ZINC CASH ............................1962.50 12.50
BRENT SPOT INDEX................119.83 0.21
SOYA .....................................1267.50 9.25
COCOA..................................2389.00 -64.00
COFFEE...................................200.05 0.75
KRUG.....................................1801.40 9.10
WHEAT ....................................168.62 1.75
AIR LIQUIDE........................................96.45 0.70 100.65 80.90
ALLIANZ..............................................91.27 1.61 108.85 56.16
ANHEUS-BUSCH INBEV ....................49.75 0.00 50.04 33.85
ARCELORMITTAL...............................16.84 0.49 28.03 10.47
AXA......................................................12.52 0.22 15.98 7.88
BANCO SANTANDER...........................6.57 0.15 9.00 4.94
BASF SE..............................................64.66 1.68 70.22 42.19
BAYER.................................................57.31 1.14 59.44 35.36
BBVA......................................................7.10 0.20 9.17 4.94
BMW ....................................................72.24 0.26 73.85 43.49
BNP PARIBAS.....................................37.17 0.29 59.93 22.72
CARREFOUR ......................................18.28 0.33 31.64 14.66
CRH PLC .............................................16.43 0.31 17.40 10.28
DAIMLER.............................................48.40 0.62 54.40 29.02
DANONE..............................................50.39 0.65 53.16 41.92
DEUTSCHE BANK..............................34.58 0.76 48.70 20.79
DEUTSCHE BOERSE .........................52.02 1.30 58.86 35.65
DEUTSCHE TELEKOM.........................9.00 0.05 11.38 7.88
E.ON.....................................................16.95 0.24 24.98 12.50
ENEL......................................................3.01 -0.03 4.86 2.78
ENI .......................................................17.46 0.12 18.49 11.83
FRANCE TELECOM............................11.48 0.06 16.65 11.09
GDF SUEZ ...........................................19.87 0.09 30.05 17.65
GENERALI ASS...................................11.94 0.06 16.91 10.34
IBERDROLA..........................................4.75 0.09 6.10 4.16
INDITEX ...............................................69.33 1.12 69.76 50.92
ING GROEP CVA...................................6.95 0.08 9.50 4.21
INTESA SANPAOLO.............................1.57 0.02 2.47 0.85
KON.PHILIPS ELECTR.......................16.42 0.34 24.12 12.01
L'OREAL..............................................85.59 -0.16 91.24 68.83
LVMH..................................................127.25 1.95 132.65 94.16
MUNICH RE .......................................111.30 1.55 126.00 77.80
NOKIA....................................................4.18 0.10 6.83 3.33
REPSOL YPF.......................................20.98 0.29 24.90 17.31
RWE.....................................................33.66 0.33 53.11 21.15
SAINT-GOBAIN...................................37.20 0.50 47.64 26.07
SANOFI ................................................55.85 -0.55 57.42 42.85
SAP......................................................49.62 0.63 49.62 32.88
SCHNEIDER ELECTRIC.....................49.42 1.47 61.83 35.00
SIEMENS .............................................75.10 0.70 99.39 62.13
SOCIETE GENERALE.........................24.17 0.14 52.70 14.32
TELECOM ITALIA..................................0.83 0.00 1.16 0.70
TELEFONICA ......................................13.26 0.21 18.59 12.50
TOTAL..................................................41.99 0.31 44.55 29.40
UNIBAIL-RODAMCO SE...................147.00 0.80 162.95 123.30
UNICREDIT............................................4.28 0.06 13.34 2.20
UNILEVER CVA...................................25.55 -0.07 27.16 20.90
VINCI ....................................................38.83 0.67 45.48 28.46
VIVENDI ...............................................16.58 0.07 21.37 14.10
VOLKSWAGEN VORZ ......................144.10 1.60 152.20 86.40
Price Chg High Low
EUSHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . 5945.25 40.18 0.68
FTSE 250 INDEX. . . . . . . . 11420.21 108.00 0.95
FTSE UK ALL SHARE . . . . 3075.12 22.07 0.72
FTSE AIMALL SH . . . . . . . . 822.01 11.68 1.44
DOWJONES INDUS 30 . . 12949.87 45.79 0.35
S&P 500 . . . . . . . . . . . . . . . 1361.23 3.19 0.23
NASDAQ COMPOSITE . . . 2951.78 -8.07 -0.27
FTSEUROFIRST 300 . . . . . 1090.95 7.73 0.71
NIKKEI 225 . . . . . . . . . . . . . 9485.09 100.92 1.08
DAX 30 PERFORMANCE. . 6948.25 100.22 1.46
CAC 40 . . . . . . . . . . . . . . . . 3472.54 32.92 0.96
SHANGHAI SE INDEX . . . . 2363.60 6.42 0.27
HANG SENG. . . . . . . . . . . 21424.79 -66.83 -0.31
S&P/ASX 20 INDEX . . . . . . 2544.90 34.50 1.37
ASX ALL ORDINARIES . . . 4332.80 59.50 1.39
BOVESPA SAO PAOLO. . 66203.50 61.80 0.09
ISEQ OVERALL INDEX . . . 3207.26 31.40 0.99
STRAITS TIMES . . . . . . . . . 2904.76 -1.93 -0.07
IGBM. . . . . . . . . . . . . . . . . . . 887.04 16.05 1.84
SWISS MARKET INDEX. . . 6242.99 5.30 0.08
Price Chg %chg
3M........................................................87.56 -0.09 98.19 68.63
ABBOTT LABS ...................................56.36 0.51 56.84 46.06
ALCOA ................................................10.15 -0.13 18.47 8.45
ALTRIA GROUP..................................29.65 0.11 30.40 23.20
AMAZON.COM..................................182.50 2.57 246.71 160.59
AMERICAN EXPRESS........................52.86 -0.01 53.80 41.30
AMGEN INC.........................................67.78 -1.11 70.00 47.66
APPLE...............................................502.12 -0.09 526.29 310.50
AT&T....................................................30.01 -0.01 31.94 27.27
BANK OF AMERICA.............................8.02 -0.07 14.91 4.92
BERKSHIRE HATAW B.......................79.42 0.51 87.65 65.35
BOEING CO.........................................75.35 0.08 80.65 56.01
CATERPILLAR..................................113.95 -0.01 116.55 67.54
CHEVRON.........................................106.66 0.14 110.99 86.68
CISCO SYSTEMS................................20.29 0.10 20.49 13.30
CITIGROUP.........................................32.92 0.21 49.60 21.40
COCA-COLA.......................................69.05 0.19 71.77 61.29
COMCAST CLASS A..........................29.17 0.53 29.27 19.19
CONOCOPHILLIPS.............................73.36 0.58 81.80 58.65
CVS/CAREMARK................................44.27 -0.28 45.00 31.30
DU PONT(EI) DE NMR........................51.48 0.95 57.50 37.10
EXXON MOBIL....................................85.62 0.21 88.23 63.47
GENERAL ELECTRIC.........................19.28 0.27 21.60 14.02
GOOGLE A........................................604.64 -1.88 670.25 473.02
HEWLETT PACKARD.........................29.59 -0.30 48.80 19.92
HOME DEPOT.....................................46.71 0.78 46.72 28.13
IBM.....................................................193.42 0.40 194.90 151.71
INTEL CORP .......................................27.37 0.55 27.50 19.16
J.P.MORGAN CHASE.........................38.47 0.47 48.13 27.85
JOHNSON & JOHNSON.....................64.99 0.07 68.05 55.76
KRAFT FOODS A................................38.01 -0.23 39.06 24.30
MC DONALD'S CORP ........................99.99 0.73 102.22 72.89
MERCK AND CO. NEW......................38.56 0.42 39.43 29.47
MICROSOFT........................................31.25 -0.04 31.55 23.65
OCCID. PETROLEUM.......................103.92 -0.41 117.89 66.36
ORACLE CORP...................................28.79 -0.16 36.50 24.72
PEPSICO.............................................62.68 -0.05 71.89 58.50
PFIZER ................................................21.19 -0.14 22.17 16.63
PHILIP MORRIS INTL .........................81.74 -0.20 82.66 60.30
PROCTER AND GAMBLE ..................64.91 -0.29 67.72 56.57
QUALCOMM INC ................................62.52 0.25 62.71 45.98
SCHLUMBERGER ..............................77.74 -0.32 95.64 54.79
TRAVELERS CIES..............................59.85 0.41 64.17 45.97
UNITED TECHNOLOGIE ....................83.78 0.56 91.83 66.87
UNITEDHEALTH GROUP...................54.68 -0.11 54.89 41.27
VERIZON COMMS ..............................38.46 0.41 40.48 32.28
VISA CL A..........................................115.01 1.21 117.18 70.45
WAL-MART STORES..........................62.48 0.44 62.63 48.31
WALT DISNEY CO ..............................41.75 0.21 44.34 28.19
WELLS FARGO & CO.........................31.09 0.72 33.20 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 ..................0.270 -0.01
LIBOR Euro - 12 months ................1.640 -0.01
LIBOR USD - overnight...................0.142 0.00
LIBOR USD - 12 months.................1.066 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 .........................3.150 0.01
European repo rate.........................0.190 -0.01
Euro Euribor ....................................0.366 0.00
The vix index ...................................17.78 -1.44
The baItic dry index ........................731.0 14.00
Markit iBoxx...................................239.25 -3.58
Markit iTraxx..................................135.81 1.27
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
USSHARES
BAE Systems . . . . . .325.4 1.0 342.7 248.1
Chemring Group . . . .439.0 7.6 736.5 368.8
Cobham . . . . . . . . . . .191.3 0.3 236.5 165.9
Meggitt . . . . . . . . . . . .386.7 0.4 397.6 304.9
QinetiQ Group . . . . . .150.0 2.0 150.1 101.5
RoIIs-Royce HoIdi . . .793.0 -5.0 804.7 557.5
Senior . . . . . . . . . . . . .186.1 2.9 190.6 132.6
UItra EIectronics . . .1677.0 10.0 1808.0 1305.0
GKN . . . . . . . . . . . . . .226.2 3.1 245.0 157.0
BarcIays . . . . . . . . . . .250.9 2.6 329.6 138.9
HSBC HoIdings . . . . .581.7 4.0 722.8 463.5
LIoyds Banking Gr . . .36.3 0.9 69.3 21.8
RoyaI Bank of Sco . . .28.5 0.9 48.5 17.3
Standard Chartere .1644.0 8.0 1712.5 1169.5
AG Barr . . . . . . . . . .1203.0 3.0 1395.0 1031.0
Britvic . . . . . . . . . . . . .376.2 1.8 444.0 289.9
Diageo . . . . . . . . . . .1498.0 -0.5 1509.5 1112.0
SABMiIIer . . . . . . . . .2539.0 -1.5 2563.5 1979.0
AZ EIectronic Mat . . .317.6 5.5 338.1 206.1
Croda Internation . .2031.0 5.0 2091.0 1492.0
EIementis . . . . . . . . . .169.5 2.6 187.4 107.5
Johnson Matthey . .2351.0 32.0 2361.7 1523.0
Victrex . . . . . . . . . . .1353.0 13.0 1590.0 1025.0
YuIe Catto & Co . . . . .212.6 2.7 253.0 148.0
C/$ 1.3246 0.0100
C/ 0.8357 0.0057
C/ 105.39 0.7860
/C 1.1966 0.0075
/$ 1.5848 0.0017
/ 126.09 0.1305
FTSE 100
5945.25
40.18*
FTSE 250
11420.21
108.00
FTSE ALLSHARE
3075.12
22.07
DOW
12949.87
45.79
NASDAQ
2951.78
8.07
S&P 500
1361.23
3.19
Smith (DS) . . . . . . . . .169.8 2.8 183.4 113.3
Smiths Group . . . . .1060.0 5.0 1378.0 869.5
Brown (N.) Group . . .251.3 -1.7 304.5 227.0
Carpetright . . . . . . . . .649.0 7.5 770.5 375.0
Debenhams . . . . . . . . .71.4 0.6 74.8 51.2
Dignity . . . . . . . . . . . .786.0 6.5 854.5 666.5
Dixons RetaiI . . . . . . .14.9 0.3 21.3 9.4
DuneImGroup . . . . . .507.5 -2.5 524.5 383.9
HaIfords Group . . . . .319.5 -3.5 408.6 268.6
Home RetaiI Group . .113.3 4.2 233.0 72.5
Inchcape . . . . . . . . . .375.4 5.4 425.4 268.1
JD Sports Fashion . .820.0 -43.0 1030.0 570.0
Kesa EIectricaIs . . . . .85.7 2.3 151.4 60.2
Kingfisher . . . . . . . . .280.5 0.3 287.1 217.0
Marks & Spencer G . .357.2 4.6 402.2 301.8
Next . . . . . . . . . . . . .2780.0 -4.0 2810.0 1868.0
Sports Direct Int . . . .290.5 3.7 293.5 169.3
WH Smith . . . . . . . . . .544.0 2.5 559.0 433.8
Smith & Nephew . . . .630.5 -2.5 742.0 521.0
Synergy HeaIth . . . . .850.0 -2.5 981.0 808.0
Barratt DeveIopme . .130.0 5.1 130.0 67.5
BeIIway . . . . . . . . . . . .818.0 27.0 821.0 540.5
BerkeIey Group Ho .1364.0 1.0 1388.0 960.0
BaIfour Beatty . . . . . .290.8 7.8 357.3 214.6
CRH . . . . . . . . . . . . .1374.0 31.0 1700.0 1053.0
GaIIiford Try . . . . . . . .500.0 0.0 530.0 332.8
Kier Group . . . . . . . .1471.0 30.0 1486.0 1097.0
Drax Group . . . . . . . .526.0 10.5 581.5 371.9
SSE . . . . . . . . . . . . . .1294.0 -1.0 1423.0 1184.0
Domino Printing S . .642.0 24.5 705.0 434.3
HaIma . . . . . . . . . . . . .388.2 5.5 429.6 306.3
Laird . . . . . . . . . . . . . .167.3 2.5 207.0 127.9
Morgan CrucibIe C . .354.4 -0.9 362.8 224.0
Oxford Instrument .1102.0 12.0 1108.0 600.5
Renishaw . . . . . . . . .1488.0 8.0 1886.0 800.0
Spectris . . . . . . . . . .1661.0 -44.0 1725.0 1039.0
Aberforth SmaIIer . . .629.5 7.5 714.0 494.0
AIIiance Trust . . . . . .367.9 0.4 392.7 310.2
Bankers Inv Trust . . .411.3 1.4 428.0 346.5
BH GIobaI Ltd. GB .1173.0 -2.0 1212.0 1058.0
BH GIobaI Ltd. US . . . .11.9 0.3 12.2 10.4
BH Macro Ltd. EUR . . .19.7 0.0 20.2 16.3
BH Macro Ltd. GBP 2020.0 -1.0 2078.0 1661.0
BH Macro Ltd. USD . . .19.5 0.0 20.2 16.2
BIackRock WorId M .718.5 6.5 815.5 574.5
BIueCrest AIIBIue . . .163.4 -0.1 176.2 160.6
British Assets Tr . . . .128.2 1.9 139.4 109.0
British Empire Se . . .451.4 5.4 533.0 404.0
CaIedonia Investm .1538.0 21.0 1816.0 1337.0
City of London In . . .299.0 1.0 306.9 257.0
Dexion AbsoIute L . .140.2 -0.4 151.0 130.0
Edinburgh Dragon . .249.1 0.2 252.0 201.4
Edinburgh Inv Tru . . .492.0 6.8 493.0 414.9
EIectra Private E . . .1624.0 -29.0 1755.0 1287.0
F&C Inv Trust . . . . . .310.7 1.9 327.9 261.5
FideIity China Sp . . . . .87.0 0.6 114.3 70.0
FideIity European . .1121.0 14.0 1287.0 912.0
HeraId Inv Trust . . . . .518.0 5.5 545.5 419.0
HICL Infrastructu . . . .119.7 -0.3 121.3 112.7
Impax Environment .103.1 0.3 125.4 88.5
John Laing Infras . . .109.8 0.4 110.6 103.4
JPMorgan American .930.5 6.5 935.0 721.5
JPMorgan Asian In . .203.0 0.0 244.0 170.1
JPMorgan Emerging .566.5 0.0 610.5 480.1
JPMorgan European .732.5 2.5 983.5 624.0
JPMorgan Indian I . . .395.5 -1.5 459.0 313.1
JPMorgan Russian .573.5 5.5 741.0 415.1
Law Debenture Cor . .380.2 2.8 385.0 321.0
MercantiIe Inv Tr . . .1002.0 11.0 1136.0 823.0
Merchants Trust . . . .391.4 5.7 431.8 341.5
Monks Inv Trust . . . .336.3 2.3 367.9 298.1
Murray Income Tru . .665.5 7.5 673.0 568.0
Murray Internatio . . .977.5 5.0 991.5 818.5
PerpetuaI Income . . .268.3 2.8 276.0 236.5
PersonaI Assets T .34600.0 60.0 34600.030210.0
PoIar Cap TechnoI . .376.0 4.0 384.8 299.5
RIT CapitaI Partn . . .1239.0 8.0 1360.0 1173.0
Scottish Inv Trus . . . .488.0 1.1 524.0 417.0
Scottish Mortgage . .691.0 -0.5 781.0 565.0
SVG CapitaI . . . . . . . .263.0 3.0 279.8 165.1
TempIe Bar Inv Tr . . .920.5 6.0 952.0 791.0
TempIeton Emergin .625.5 4.5 684.5 497.0
TR Property Inv T . . .153.9 2.7 206.1 136.2
TR Property Inv T . . . .70.9 1.1 94.0 59.8
Witan Inv Trust . . . . .492.3 3.3 533.0 401.5
3i Group . . . . . . . . . . .198.3 2.3 317.0 166.9
3i Infrastructure . . . .123.0 0.2 124.0 113.4
Aberdeen Asset Ma .260.2 -2.2 265.8 167.8
Ashmore Group . . . .392.6 2.0 420.0 301.5
Brewin DoIphin Ho . .154.0 1.5 185.4 113.7
CameIIia . . . . . . . . . .9300.0 100.010950.0 8800.0
CharIes TayIor Co . . .137.0 -0.5 165.0 115.6
City of London Gr . . . .66.0 0.0 93.6 61.3
City of London In . . .365.0 6.3 445.0 304.3
CIose Brothers Gr . . .740.0 10.0 875.0 590.0
CoIIins Stewart H . . . .98.0 -0.3 98.8 48.5
F&C Asset Managem .69.1 -0.2 88.1 56.1
Hargreaves Lansdo .483.7 11.8 646.5 402.5
HeIphire Group . . . . . . .2.1 0.0 17.4 1.4
Henderson Group . . .126.1 3.8 173.1 95.1
Highway CapitaI . . . . .13.0 0.0 21.0 7.0
ICAP . . . . . . . . . . . . . .389.6 7.1 543.0 311.6
IG Group HoIdings . .477.2 -3.9 502.5 393.6
Intermediate Capi . . .282.2 0.2 345.0 197.9
InternationaI Per . . . .225.5 6.9 388.8 148.5
InternationaI Pub . . . .119.6 -0.1 121.5 108.6
Investec . . . . . . . . . . .398.5 6.4 522.0 318.4
IP Group . . . . . . . . . . .113.0 12.0 122.0 36.0
Jupiter Fund Mana . .256.7 10.4 332.3 184.9
Liontrust Asset M . . . .89.9 0.0 91.4 57.9
LMS CapitaI . . . . . . . . .58.3 0.0 64.8 54.0
London Finance & . . .22.5 0.0 23.5 19.0
London Stock Exch .950.0 15.5 1076.0 756.5
Lonrho . . . . . . . . . . . . .10.5 0.0 19.8 8.9
Man Group . . . . . . . . .136.1 2.6 304.2 104.5
Paragon Group Of . .183.3 0.4 206.1 134.6
Provident Financi . .1049.0 18.0 1124.0 915.0
Rathbone Brothers .1290.0 19.0 1298.0 977.0
Record . . . . . . . . . . . . .12.0 0.3 35.5 11.0
RSM Tenon Group . . . .5.6 -0.2 54.3 5.6
Schroders . . . . . . . .1595.0 36.0 1906.0 1183.0
Schroders (Non-Vo .1271.0 13.0 1554.0 970.0
TuIIett Prebon . . . . . .334.0 11.0 428.6 262.3
WaIker Crips Grou . . .40.5 0.0 51.5 40.0
BT Group . . . . . . . . . .215.6 0.9 216.2 161.0
CabIe & WireIess . . . .35.7 -0.3 51.2 31.3
CabIe & WireIess . . . .27.8 0.7 75.1 14.2
COLT Group SA . . . . .95.0 1.6 156.2 84.1
KCOM Group . . . . . . . .71.0 1.0 84.0 58.5
TaIkTaIk TeIecom . . .142.0 -1.4 150.7 118.9
TeIecomPIus . . . . . . .647.0 7.0 802.0 440.0
Booker Group . . . . . . .74.3 0.3 80.0 54.5
Greggs . . . . . . . . . . . .556.0 16.0 567.3 445.0
Morrison (Wm) Sup .297.3 0.0 328.0 268.5
Ocado Group . . . . . . .103.7 7.7 259.3 52.9
Sainsbury (J) . . . . . . .304.2 2.7 384.0 263.5
Tesco . . . . . . . . . . . . .321.6 3.7 420.1 312.4
Associated Britis . .1219.0 -7.0 1236.0 940.0
Cranswick . . . . . . . . .821.5 -3.5 862.0 588.5
Dairy Crest Group . . .333.5 -0.3 409.7 311.0
Devro . . . . . . . . . . . . .294.0 5.8 296.9 232.0
Tate & LyIe . . . . . . . . .701.0 -6.5 720.5 520.0
UniIever . . . . . . . . . .2069.0 6.0 2189.0 1796.0
Mondi . . . . . . . . . . . . .562.5 8.5 664.0 413.5
Centrica . . . . . . . . . . .297.5 3.6 344.9 278.8
InternationaI Pow . . .337.1 1.3 347.0 279.4
NationaI Grid . . . . . . .644.5 -0.5 649.5 543.5
Pennon Group . . . . . .701.0 -5.0 737.5 584.5
Severn Trent . . . . . .1540.0 -11.0 1600.0 1375.0
United UtiIities . . . . .604.5 -4.0 637.0 551.0
Cookson Group . . . . .649.5 14.5 724.5 395.8
Rexam . . . . . . . . . . . .385.5 3.4 400.0 299.8
RPC Group . . . . . . . .390.9 10.8 393.2 231.5
Price Chg High Low
Bovis Homes Group .514.0 11.0 521.0 326.5
Persimmon . . . . . . . .609.0 21.0 618.0 374.0
Reckitt Benckiser . .3582.0 -11.0 3619.0 3015.0
Redrow . . . . . . . . . . . .129.6 -0.5 136.2 103.5
TayIor Wimpey . . . . . . .48.8 1.8 49.1 28.7
Bodycote . . . . . . . . . .347.5 9.0 397.7 225.6
Fenner . . . . . . . . . . . .458.0 5.3 465.8 280.0
IMI . . . . . . . . . . . . . . . .982.5 22.5 1119.0 636.5
MeIrose . . . . . . . . . . .386.1 5.9 389.2 268.0
Northgate . . . . . . . . . .239.0 -1.5 346.7 190.9
Rotork . . . . . . . . . . .2038.0 43.0 2038.2 1501.0
Spirax-Sarco Engi . .2082.0 32.0 2091.0 1649.0
Weir Group . . . . . . .2186.0 135.0 2218.0 1375.0
Evraz . . . . . . . . . . . . .432.4 9.4 460.5 315.0
Ferrexpo . . . . . . . . . . .336.1 5.7 499.0 238.7
TaIvivaara Mining . . .288.3 1.8 589.0 195.2
BBAAviation . . . . . . .211.2 3.3 234.0 156.0
Stobart Group Ltd . . .125.0 0.8 155.0 112.0
AdmiraI Group . . . . .1011.0 14.0 1754.0 787.0
AmIin . . . . . . . . . . . . .364.0 3.6 427.0 270.6
BeazIey . . . . . . . . . . . .149.9 2.3 151.1 109.6
Informa . . . . . . . . . . . .425.0 2.9 455.7 313.9
ITE Group . . . . . . . . . .237.2 0.8 258.2 157.7
ITV . . . . . . . . . . . . . . . . .78.1 0.8 93.5 51.7
Johnston Press . . . . . . .6.4 -0.1 12.8 4.1
MecomGroup . . . . . .200.0 14.0 310.0 134.5
Moneysupermarket. .120.7 -0.3 124.4 84.8
Pearson . . . . . . . . . .1226.0 2.0 1255.0 1013.0
PerformGroup . . . . .275.5 4.1 280.7 150.0
Reed EIsevier . . . . . .557.5 -2.5 578.0 461.3
Rightmove . . . . . . . .1342.0 10.0 1408.0 857.0
STV Group . . . . . . . . .108.5 -0.5 168.0 76.3
Tarsus Group . . . . . .147.5 -0.5 165.0 119.5
Trinity Mirror . . . . . . . .49.0 -0.5 84.3 37.5
UBM . . . . . . . . . . . . . .590.5 -1.0 719.5 416.0
UTV Media . . . . . . . . .120.3 2.3 150.0 92.5
WiImington Group . . .84.4 -0.4 169.6 78.5
WPP . . . . . . . . . . . . . .816.5 5.5 846.5 578.0
YeII Group . . . . . . . . . . .4.5 -0.0 11.0 3.4
African Barrick G . . .451.8 8.7 616.5 393.5
AIIied GoId Minin . . . .119.5 1.3 281.3 34.4
AngIo American . . .2690.0 16.0 3360.5 2138.5
AngIo Pacific Gro . . .315.0 0.0 350.0 237.9
Antofagasta . . . . . . .1333.0 29.0 1491.0 900.5
Aquarius PIatinum . .145.7 7.4 405.5 136.7
BHP BiIIiton . . . . . . .2077.5 54.5 2631.5 1667.0
CatIin Group Ltd. . . .420.0 -1.7 449.0 334.0
Hiscox Ltd. . . . . . . . . .412.0 -3.0 424.7 340.5
Jardine LIoyd Tho . . .672.5 3.5 764.5 576.0
Lancashire HoIdin . . .784.0 -1.0 787.5 532.5
RSA Insurance Gro . .114.5 0.9 143.2 99.6
Aviva . . . . . . . . . . . . . .382.6 12.6 477.9 275.3
LegaI & GeneraI G . . .122.9 1.2 124.0 89.8
OId MutuaI . . . . . . . . .159.4 -0.2 160.9 98.1
Phoenix Group HoI . .561.0 -4.0 688.0 451.1
PrudentiaI . . . . . . . . .724.0 3.0 777.0 509.0
ResoIution Ltd. . . . . .265.0 3.3 316.1 229.5
St James's PIace . . . .375.0 4.8 380.0 294.0
Standard Life . . . . . . .235.6 1.7 244.7 172.0
4Imprint Group . . . . .255.0 -1.5 295.0 200.0
Aegis Group . . . . . . .170.7 0.7 174.2 115.7
BIoomsbury PubIis . .123.3 3.0 138.0 91.3
British Sky Broad . . .688.0 2.0 850.0 618.5
Centaur Media . . . . . . .43.5 4.3 73.0 32.5
Chime Communicati .225.0 6.5 298.5 163.0
Creston . . . . . . . . . . . .56.5 -0.3 121.0 47.0
DaiIy MaiI and Ge . . .436.0 2.2 566.0 343.4
Euromoney Institu . .727.0 1.5 738.0 522.5
Future . . . . . . . . . . . . . .13.1 0.0 27.5 8.3
Haynes PubIishing . .197.0 2.0 257.0 190.0
Huntsworth . . . . . . . . .42.3 0.1 80.0 32.3
Bumi . . . . . . . . . . . . . .744.5 -0.47 760.0 736.0
Centamin (DI) . . . . . . . .92.9 0.3 154.2 78.5
Eurasian NaturaI . . .722.0 18.5 1000.0 522.0
FresniIIo . . . . . . . . . .1747.0 27.0 2150.0 1302.0
GemDiamonds Ltd. .239.7 2.5 306.0 179.8
GIencore Internat . . .436.5 6.5 531.1 348.0
HochschiId Mining . .499.8 0.6 680.0 365.9
Kazakhmys . . . . . . .1147.0 23.0 1493.0 730.0
Kenmare Resources . .56.4 -2.6 59.9 31.0
Lonmin . . . . . . . . . . .1043.0 26.0 1880.0 941.0
New WorId Resourc .518.5 11.0 1060.0 409.4
PetropavIovsk . . . . . .696.5 -2.0 1090.0 543.5
PoIymetaI Interna . .1084.0 15.0 1175.0 877.0
RandgoId Resource 7135.0 75.0 7565.0 4425.0
Rio Tinto . . . . . . . . .3706.0 84.0 4595.0 2712.5
Vedanta Resources 1358.0 46.0 2518.0 928.0
Xstrata . . . . . . . . . . .1207.0 11.0 1550.0 764.0
Inmarsat . . . . . . . . . . .477.1 -5.5 692.0 389.3
Vodafone Group . . . .175.4 0.8 182.7 155.1
Genesis Emerging . .510.0 1.0 548.5 424.0
Afren . . . . . . . . . . . . . .133.6 2.0 171.2 73.6
BG Group . . . . . . . . .1509.0 26.5 1564.5 1144.0
BP . . . . . . . . . . . . . . . .499.3 10.3 503.0 363.2
Cairn Energy . . . . . . .354.2 4.1 531.8 291.9
EnQuest . . . . . . . . . . .121.6 3.0 158.5 85.7
Essar Energy . . . . . .125.1 2.8 525.5 120.0
ExiIIon Energy . . . . . .245.0 2.0 469.7 184.2
Heritage OiI . . . . . . . .188.5 -0.1 332.2 160.0
Ophir Energy . . . . . . .369.1 -0.6 379.9 184.5
Premier OiI . . . . . . . . .431.2 9.0 521.0 310.0
RoyaI Dutch SheII . .2286.0 -7.0 2402.0 1883.5
RoyaI Dutch SheII . .2317.5 -9.5 2489.0 1890.5
SaIamander Energy .247.8 2.4 317.6 182.3
Soco Internationa . . .315.0 1.6 400.0 278.0
TuIIow OiI . . . . . . . . .1601.0 35.0 1611.0 945.5
Amec . . . . . . . . . . . .1108.0 12.0 1207.0 740.5
Hunting . . . . . . . . . . .779.0 5.0 845.0 530.0
Kentz Corporation . .472.6 -2.4 508.0 347.0
LampreII . . . . . . . . . . .327.0 7.0 395.2 220.7
Petrofac Ltd. . . . . . .1553.0 11.0 1603.0 1108.0
Wood Group (John) .713.5 12.5 720.0 469.9
Burberry Group . . . .1436.0 12.0 1600.0 1092.0
PZ Cussons . . . . . . . .314.6 -6.9 387.9 285.0
Supergroup . . . . . . . .553.0 3.0 1658.0 435.2
AstraZeneca . . . . . .2843.5 -9.0 3194.0 2543.5
BTG . . . . . . . . . . . . . .347.1 3.8 350.8 210.1
Genus . . . . . . . . . . . .1109.0 -19.0 1144.0 853.5
GIaxoSmithKIine . . .1407.0 -7.0 1497.0 1138.5
Hikma Pharmaceuti .728.5 6.0 869.0 555.5
Shire PIc . . . . . . . . . .2252.0 -26.0 2300.0 1671.0
CapitaI & Countie . . .194.0 0.0 203.7 144.5
Daejan HoIdings . . .2940.0 50.0 3030.0 2282.0
F&C CommerciaI Pr .103.0 0.1 108.0 92.6
Grainger . . . . . . . . . . .105.3 1.8 133.2 77.3
London & Stamford .113.7 1.7 140.0 103.9
SaviIIs . . . . . . . . . . . . .362.3 2.2 427.1 256.2
UK CommerciaI Pro . .73.7 0.2 85.5 65.1
Unite Group . . . . . . . .192.0 2.0 224.1 152.9
Big YeIIow Group . . .300.7 -2.1 344.4 218.0
British Land Co . . . . .483.9 3.3 629.5 444.0
CapitaI Shopping . . .342.9 3.1 408.6 288.7
Derwent London . . .1748.0 6.0 1880.0 1400.0
Great PortIand Es . . .354.2 -0.3 445.0 312.9
Hammerson . . . . . . . .401.7 5.3 490.9 345.2
Hansteen HoIdings . . .74.0 -1.0 89.5 68.0
Land Securities G . . .691.5 7.0 885.0 612.0
SEGRO . . . . . . . . . . . .236.7 5.9 331.3 195.0
Shaftesbury . . . . . . . .505.5 0.0 539.0 441.2
Aveva Group . . . . . .1680.0 -19.0 1799.0 1298.0
Computacenter . . . . .413.8 4.3 490.0 324.7
Fidessa Group . . . . .1766.0 93.0 2109.0 1444.0
Invensys . . . . . . . . . . .219.6 2.5 357.8 180.9
Logica . . . . . . . . . . . . .80.3 0.3 147.2 59.0
Micro Focus Inter . . .451.4 -3.6 458.4 242.9
Misys . . . . . . . . . . . . .330.1 20.5 420.2 214.9
Sage Group . . . . . . . .308.2 0.9 310.1 231.7
SDL . . . . . . . . . . . . . . .670.0 5.0 711.5 586.0
TeIecity Group . . . . . .682.5 5.0 694.5 450.5
Aggreko . . . . . . . . . .2188.0 16.0 2199.0 1394.5
Ashtead Group . . . . .246.0 7.4 252.5 99.4
Atkins (WS) . . . . . . . .765.5 2.0 820.0 490.2
Babcock Internati . . .740.0 -4.5 758.0 542.0
Berendsen . . . . . . . . .473.0 2.7 568.0 402.7
BunzI . . . . . . . . . . . . .924.5 2.0 931.5 676.5
Cape . . . . . . . . . . . . . .436.6 1.6 591.5 295.0
Capita . . . . . . . . . . . . .656.5 2.0 786.5 611.5
CariIIion . . . . . . . . . . .339.3 6.5 403.2 281.0
De La Rue . . . . . . . . .985.0 3.5 1001.0 699.0
DipIoma . . . . . . . . . . .395.5 -0.1 425.5 263.5
EIectrocomponents .245.7 3.9 294.9 182.2
Experian . . . . . . . . . . .960.0 14.5 964.0 665.0
FiItrona PLC . . . . . . . .406.1 6.1 406.1 293.0
G4S . . . . . . . . . . . . . . .281.0 0.9 291.0 219.9
Hays . . . . . . . . . . . . . . .81.2 1.2 130.0 58.9
Homeserve . . . . . . . .234.4 -14.9 532.0 218.5
Howden Joinery Gr . .116.3 5.0 124.6 93.1
Interserve . . . . . . . . . .317.5 0.1 341.3 239.8
Intertek Group . . . . .2261.0 22.0 2296.0 1738.0
MichaeI Page Inte . . .432.1 10.7 567.0 323.0
Mitie Group . . . . . . . .266.8 -1.3 271.0 195.9
PayPoint . . . . . . . . . . .573.0 -4.5 585.0 327.3
Premier FarneII . . . . .220.8 3.3 308.8 144.5
Regus . . . . . . . . . . . . .115.0 -0.2 119.0 64.0
RentokiI InitiaI . . . . . . .80.5 3.6 100.9 58.2
RPS Group . . . . . . . . .229.8 4.9 253.0 156.6
Serco Group . . . . . . .546.0 7.5 618.5 458.0
Shanks Group . . . . . .107.0 -0.2 130.9 90.8
SIG . . . . . . . . . . . . . . .111.0 3.9 153.5 77.0
Travis Perkins . . . . .1008.0 31.5 1090.0 715.0
WoIseIey . . . . . . . . .2465.0 58.0 2485.0 1404.0
ARM HoIdings . . . . . .586.0 2.0 645.0 464.0
CSR . . . . . . . . . . . . . .275.0 47.3 434.0 154.1
Imagination Techn . .610.5 10.5 630.5 296.9
Spirent Communica .133.9 3.0 160.0 105.8
British American . .3113.5 -1.5 3148.0 2300.0
ImperiaI Tobacco . .2500.0 -19.0 2525.0 1878.0
Betfair Group . . . . . . .880.0 -0.5 1030.0 567.0
Bwin.party Digita . . .169.0 1.0 204.0 100.6
CarnivaI . . . . . . . . . .1981.0 42.0 2907.0 1742.0
Compass Group . . . .637.5 -3.5 645.5 512.5
Domino's Pizza UK . .479.6 0.6 526.0 377.0
easyJet . . . . . . . . . . . .469.4 -5.2 476.1 301.0
FirstGroup . . . . . . . . .302.3 -1.6 378.0 300.0
Go-Ahead Group . . .1319.0 21.0 1598.0 1190.0
Greene King . . . . . . .506.5 -1.0 521.5 410.0
InterContinentaI . . .1440.0 30.0 1445.0 955.0
InternationaI Con . . .173.4 1.7 258.7 132.0
JD Wetherspoon . . . .404.9 -6.5 468.3 380.5
Ladbrokes . . . . . . . . .154.5 3.5 155.3 114.0
Marston's . . . . . . . . . . .99.8 0.9 112.0 84.6
MiIIennium& Copt . .489.2 3.2 598.5 371.2
MitcheIIs & ButIe . . . .276.6 3.0 336.8 215.6
NationaI Express . . .229.0 -0.9 270.2 201.6
Rank Group . . . . . . . .131.0 2.0 153.7 109.5
Restaurant Group . . .304.2 -5.5 335.0 254.9
Spirit Pub Compan . . .55.8 -0.8 57.9 35.3
Stagecoach Group . .272.3 7.5 287.4 200.0
TUI TraveI . . . . . . . . . .210.2 4.3 250.0 136.7
Whitbread . . . . . . . .1726.0 0.0 1843.0 1409.0
WiIIiamHiII . . . . . . . . .237.5 1.4 244.1 176.8
Abcam . . . . . . . . . . . .332.0 3.5 460.0 320.0
Advanced MedicaI . . .90.5 0.0 96.0 64.8
AIbemarIe & Bond . .372.0 4.0 400.1 281.0
Amerisur Resource . .22.8 -0.3 29.0 9.5
Andor TechnoIogy . .543.0 -7.0 685.0 387.1
ArchipeIago Resou . . .69.4 -0.4 79.0 55.5
ASOS . . . . . . . . . . . .1892.0 38.0 2468.0 1142.0
AureIian OiI & Ga . . . .22.0 4.0 92.0 16.0
Avanti Communicat .273.3 3.5 596.5 248.5
BIinkx . . . . . . . . . . . . . .88.5 2.3 158.0 50.5
Borders & Souther . . .80.5 5.3 81.9 43.5
BowLeven . . . . . . . . .119.0 -1.0 382.3 62.0
Brooks MacdonaId .1197.5 12.5 1372.5 940.0
CIuff GoId . . . . . . . . . . .95.8 2.0 125.8 66.5
Cove Energy . . . . . . .156.8 7.8 158.5 61.0
Daisy Group . . . . . . .105.3 0.3 127.0 88.0
EMIS Group . . . . . . . .421.5 -1.0 580.0 397.5
Faroe PetroIeum . . . .170.5 4.3 190.0 130.0
GuIfsands PetroIe . . .173.0 2.0 342.0 142.5
GWPharmaceuticaI . .91.6 0.9 130.0 78.5
H&T Group . . . . . . . . .330.0 -14.5 395.0 277.0
Hargreaves Servic .1215.0 -2.0 1224.0 855.0
HeaIthcare Locums . . . .3.0 -0.1 3.4 3.0
Immunodiagnostic . .470.5 12.8 1218.0 288.8
ImpeIIamGroup . . . .322.5 12.5 387.5 225.0
Iomart Group . . . . . . .145.0 1.0 151.0 85.5
James HaIstead . . . . .500.0 0.0 511.9 410.0
London Mining . . . . .292.0 11.0 436.5 257.5
Lupus CapitaI . . . . . .126.0 -1.8 150.0 86.0
M. P. Evans Group . .452.0 2.5 475.0 371.0
Majestic Wine . . . . . .420.0 -3.3 510.0 315.0
May Gurney Integr . .292.5 -1.5 302.0 234.0
Monitise . . . . . . . . . . . .36.5 -2.5 40.0 20.5
MuIberry Group . . . .1915.0 -35.0 1965.0 1065.0
Nanoco Group . . . . . . .64.3 1.3 93.3 38.0
NauticaI PetroIeu . . .352.5 18.0 452.0 223.5
NichoIs . . . . . . . . . . . .630.0 8.0 630.0 410.0
Numis Corporation . . .99.3 3.8 122.5 72.0
Pan African Resou . . .17.1 0.4 17.8 9.5
Patagonia GoId . . . . . .39.8 -0.3 70.0 36.8
Prezzo . . . . . . . . . . . . .64.5 0.0 71.5 53.5
Pursuit Dynamics . . . .89.5 1.5 409.0 67.0
Rockhopper ExpIor .382.8 11.5 386.8 141.0
RWS HoIdings . . . . . .505.3 17.8 510.0 350.0
Secure Trust Bank .1047.5 42.5 1050.0 755.0
Songbird Estates . . .109.0 1.9 160.3 103.0
VaIiant PetroIeum . . .495.8 -1.8 645.0 400.0
Young & Co's Brew . .660.0 7.5 712.0 565.0
CSR . . . . . . . . . . . . . .275.0 20.8
Ocado Group . . . . . . .103.7 8.0
Misys . . . . . . . . . . . . .330.1 6.6
Weir Group . . . . . . .2186.0 6.6
Fidessa Group . . . . .1766.0 5.6
Aquarius PIatinum . .145.7 5.4
RentokiI InitiaI . . . . . . .80.5 4.6
Howden Joinery Gro .116.3 4.5
Jupiter Fund Manag .256.7 4.2
Barratt DeveIopmen .130.0 4.1
Homeserve . . . . . . . .234.4 -6.0
JD Sports Fashion . .820.0 -5.0
Kenmare Resources . .56.4 -4.4
Spectris . . . . . . . . . .1661.0 -2.6
PZ Cussons . . . . . . . .314.6 -2.2
Restaurant Group . . .304.2 -1.8
EIectra Private Eq . .1624.0 -1.8
Genus . . . . . . . . . . . .1109.0 -1.7
JD Wetherspoon . . . .404.9 -1.6
Hansteen HoIdings . . .74.0 -1.3
Risers FaIIers
MAIN CHANGES UK 350
Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low Price Chg High Low
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Tsy 5.000 12 . . . .100.15 -0.05 104.2 100.1
Tsy 5.250 12 . . . .101.40 -0.02 105.4 101.4
Tsy 9.000 12 . . . .103.89 0.00 111.2 103.3
Tsy 2.500 13 . . . .282.67 -0.05 287.7 279.8
Tsy 8.000 13 . . . . .112.05 -0.03 116.9 112.0
Tsy 4.500 13 . . . .104.25 -0.01 106.5 104.2
Tsy 5.000 14 . . . . .111.47 -0.03 112.9 109.2
Tsy 8.000 15 . . . .127.38 -0.13 129.2 123.7
Tsy 7.750 15 . . . .100.00 0.00 106.1 99.4
Tsy 4.750 15 . . . . .114.33 -0.13 115.4 108.8
Tsy 2.500 16 . . . .340.33 -0.28 344.2 312.5
Tsy 4.000 16 . . . . .113.56 -0.15 114.7 105.2
Tsy 1.250 17 . . . . .114.82 -0.41 116.6 106.7
Tsy 12.000 17 . . .120.69 0.00 128.6 119.4
Tsy 8.750 17 . . . .140.30 -0.49 141.9 133.0
Tsy 5.000 18 . . . .121.25 -0.22 122.5 110.0
Tsy 4.500 19 . . . . .119.25 -0.30 120.7 105.9
Tsy 3.750 19 . . . . .114.03 -0.32 115.6 100.0
Tsy 2.500 20 . . . .361.20 -0.57 367.1 314.1
Tsy 4.750 20 . . . .121.35 -0.35 123.5 107.1
Tsy 8.000 21 . . . .149.78 -0.37 153.4 134.4
Tsy 4.000 22 . . . . .115.11 -0.40 118.2 99.6
Tsy 1.875 22 . . . .124.79 -0.72 129.1 111.3
Tsy 2.500 24 . . . .323.58 -0.76 334.7 275.9
Tsy 5.000 25 . . . .126.05 -0.46 130.6 108.3
Tsy 4.250 27 . . . . .116.87 -0.56 122.7 98.7
Tsy 1.250 27 . . . .120.41 -1.09 127.0 104.8
Tsy 6.000 28 . . . .140.98 -0.56 148.0 120.3
Tsy 4.125 30 . . . .306.77 -1.06 322.8 263.4
Tsy 4.750 30 . . . .123.18 -0.54 130.5 103.9
Tsy 4.250 32 . . . . .115.66 -0.58 123.1 97.0
Tsy 4.250 36 . . . . .115.60 -0.64 123.9 96.2
Tsy 4.750 38 . . . .124.71 -0.68 134.2 104.4
Tsy 4.500 42 . . . .121.04 -0.73 130.8 100.7
% %
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Lifestyle | Health
26
Episode 47: AN INTIMATE MONDAY LUNCH
I
sit opposite Caroline at the same
secluded table we used to sit at 10
years ago. Weve both moved on
since then. The restaurant hasnt.
Caroline is clearly making a point.
How was your bonus? she asks, as
the waiter retreats, having taken our
order.
We wont go hungry, I reply.
Technically true, although I was actual-
ly a little disappointed after last years
munificence.
Im glad. Funny, isnt it, how our lives
have become entangled once more?
she continues. Me sneaking in ahead of
you for last years City A.M. award.
Then my boys rescuing Nicks business,
not to mention your own modest
investment. And that Ozzie deal last
week. Hope you didnt mind that, David.
Actually, I dont know how we missed
one another. Must have been down
there at the same time. It would have
been nice to see you. Anyway, Im sure
you have far bigger fish to fry.
Alls fair in love and war Caroline, I
reply, feigning indifference but immedi-
ately regretting the use of the L word.
Oh, is that what this is? she asks.
Does Emma know were having
lunch?
Of course she does, I lie.
You know, theres never really been
anyone else. I mean, obviously I havent
lived like a nun but Even Sandy, well,
you wouldnt have to be a psychothera-
pist to interpret my affair with your
boss, would you? And things ended so
messily between us. Unresolved. She
reaches across the table and places her
hand upon mine. My gaze wanders
from her hand, up her elegant, toned
arm, to find her eyes looking penetrat-
ingly into mine. I just wondered,
whether you might feel the same?
Caroline, you, you ended it. Ten
years ago, And now Im married, with
three children.
But I have not moved my hand away.
City Dad will continue next Tuesday.
For past episodes, go to
www.cityam.com.
CITY DAD
FIT IN
THE CITY
BY LAURA WILLIAMS
FITNESS & DIET EXPERT
Forget cycling
machines, try
the Wattbike
I
must admit, Im not a huge fan of cycling I tend to
associate it with boredom and bulky thighs. But, given
that last weekend saw the track World Cup at the
new velodrome, coupled with the fact that cyclings
one of the few feasible medal-winners for the Brits come
the summer, I felt obliged to take up an offer by Wattbike
to try out its state-of-the-art indoor bike. Described as
the king of indoor trainers, the Wattbike is actually the
only indoor training bike to be endorsed by British Cycling.
My first impression was that, unlike other stationary
bikes that leave your legs feeling like lead but heart rate
barely raised, I was soon getting up a bit of a sweat
without having dead legs, so it does do what it says on
the tin, which is to mimic the outdoor cycling experience.
But the bit about the Wattbike that excites most cycling
enthusiasts and triathletes is the amount and precision
of data the bike records.
The Wattbikes proved very popular here, says Diane
Kay, director of sales and marketing at the Reebok Club
in Canary Wharf, where I had my session. Many of our
members are time-poor and want a highly efficient
workout that comes complete with accurate data and
state of the art software basically a workout that com-
pliments the rest of their working day. Cadence, power
and heart rate are all recorded as is your pedal tech-
nique. This is the bit that got me right in front of my
eyes was a moving graph (known as the Polar View)
showing the exact amount of force I was applying
through each leg during the entire pedal revolution. Even
as someone whos usually left cold by statistics and tech-
nology, this is a pretty impressive feature. And as theres
a good pattern to strive for: a peanut means your
technique is okay; a sausage is what an elite world
cyclist produces, and then theres my own rather lame
figure-of-8. This aspect of the session alone is enough to
keep boredom at bay.
Whether youre a cycling pro or someone who wants
to try a new bit of kit to shift those residual Christmas
pounds, Id highly recommend the Wattbike as I tweet-
ed after my session, cycling, maths AND physics just got
interesting.
For details on the Wattbike, including purchasing, hiring
or clubs you can find them in: wattbike.com/uk
Reebok Sports Club: www.reebokclub.co.uk
@laurafitness; www.laurawilliamsonline.com
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Whether its crawling through mud or swinging through trees, there
are more creative ways to get fit than the gym, says Steve Dinneen
Get fit while the sun shines
T
wo days without Februarys
usual inclement weather
should have been enough to
rouse from hibernation the part
of your brain that craves exercise.
Escape the tedium of the gym with
these get-fit options that take advan-
tage of the weather while it lasts.
TOUGH MUDDER
Run by the special forces, Tough
Mudder is an insane 12 mile obstacle
course that promises to challenge you
both mentally and physically by testing
your strength, stamina and mental
grit. The scheme has been running for
some time in the US and will debut in
the UK for the first time in May. The
gruelling challenge billed as the
toughest event on earth incorpo-
rates crawling through mud, carrying
logs, swinging across monkey-bars and
clambering up sheer walls.
The first event will be held in Northampton
on 12/13 May. Go to toughmudder.com for
more details.
GO APE
This treetop adventure is basically an
assault course in the sky. It features a
series of wires, bridges and ladders
strung from trees, where you can test
your head for heights as well as your
overall fitness. The facility specialises in
corporate events and claims to be an
ideal team-building exercise especial-
ly if your superiors suffer from vertigo.
Go Ape has facilities across the country and
costs 30 for a single adult. Corporate events
can be tailored to suit specific needs. Go to
goape.co.uk for more details.
BRITISH MILITARY FITNESS
Calling itself the most challenging,
motivating and sociable form of group
fitness in the UK, this team oriented
regime is, predictably, run by military
fitness instructors. The hour-long
classes have been developed over the
last 12 years to squeeze as much out of
you as humanly possible. If you are the
kind of person who gives up on the
treadmill without someone yelling at
you, this is probably the right course
for you.
Classes in Hyde Park cost 50 a month for
unlimited classes, in addition to a 25 mem-
bership fee. Go to www.britmilfit.com for
more details.
POWER LEAGUE
Now that the worst of the cold is over
its time to dust off your boots and
hit the five-a-side pitch. Football has
been proven to be better for your
overall fitness than going to the gym
and its a great excuse to get together
with your mates for the evening.
Power League has pitches in
Wembley, Old Street, Barnet,
Croydon and Tottenham where you
can either play a casual game or join
a tournament to prove who has the
silkiest skills in London.
Log on to www.powerleague.co.uk for more
details.
URBAN GYM
Escape the boredom of the gym with
these outdoor exercise classes in the
heart of the City. Groups meet near St
Pauls, where they will be instructed in
circuit-based training combined with
short running sections. The sessions
take place in the City but the firm
promises to take in some unusual, hid-
den away spots: ideal for those who
want to avoid bumping into the boss
half way through your workout. All
levels are catered for.
Prices start at 24 a month with a mini-
mum 12 month contract. Go to
www.ratrace.com for more details.
(clockwise from left) A Tough
Mudder event in the US; a
British Military Fitness session;
an Urban Gym runner; a Go Ape
treetop adventure facility
Wright Brothers
Soho Oyster House
13 Kingly Street, W1B 5PW
Tel: 020 7434 3611, thewrightbrothers.co.uk
FOOD hhhhi
SERVICE hhhhi
ATMOSPHERE hhhhi
Cost per person without wine: 40
T
HE Wright Brothers establishment
in Borough Market is a temptation
that is sorrowfully hard to indulge
because it is tiny and rammed. The
former contributes considerably to its
charm: at few other places would I wait
half an hour for a stool at a beer barrel. But
when it comes to oysters, beer and top-
drawer seafood in the Wright Bros style,
more space can only be good.
Enter the new(ish) outlet in Soho:
known as the Oyster House rather than the
Oyster & Porter House of Borough, its big-
ger and quite possibly better. Decor doesnt
suffer set over two levels, it still manages
to feel cosy, but with the clattery vibrant
atmosphere one desires of Soho.
In London, oysters have always been pop-
ular, though in Dickens day they were not
considered the delicacy they are now and
were often shoved in pies alongside god
knows what else. These days, they tend to
come with high prices and a degree of
pomp. For example, the famous oyster bars
at Scotts (first opened on the Haymarket
in 1858), J Sheekeys and Bentleys are all
Wright Bros Soho
restaurant offers
more space: which is
a good thing.
Prime oysters and a
range of wonderful
sh make Wright
Brothers bigger
outpost a true delight
Soho oyster bar is a serious catch
excellent and historically-weighted. Wright
Bros, by contrast, feels more casual and
accessible to the after-work crowd, rather
than the business people or tourist crowd,
and it is much cooler for it.
Staff are lovely and helpful, ideal con-
duits for the astoundingly succulent plate
of oysters were about to have (washed
down with some English sparkling wine
what else? before moving onto a white
Rioja).
The Duchy Natives and Lindisfarnes
were good, but the Cumbrae blew us away
(the cheapest of the lot at 6.50 for three). I
am not the biggest poster girl for oysters as
I have a fear of being sick, but any reserva-
tions Id had were firmly stamped out with
this paen to the marine: the Cumbrae were
enormous and salty, but in a fragrant way
that only the best are. After this, the caviar
and cream-topped pearls wed decadently
ordered just lost their sheen. I am pleased
to report that none of the oysters made us
sick, nor were they likely to.
Then order the fish of the day, especially
if its anything like the great big roast brill
for three we shared between two, with per-
fect new potatoes and broccoli. Fish can
pack just as much a punch as beef: I was
felled by far less than half the fish as my
companion deftly continued scoring and
serving it up. There was a touch of sea bass
to the brill, but meatier, with a silky tex-
ture and buttery flavour.
By now, full on the finest the sea has to
offer and drunk on the best of Spanish
grapes, we thought puddings would be a
fine idea. Bakewell tart (tart of the day)
tasted terrific but my connoisseur friend
was concerned by its flimsiness; chocolate
pot with hazelnut praline hit the spot.
Wright Bros does not expect everyone to
want oysters and massive whole fish. There
are playful and less playful alternatives:
seafood biryani, sardines on toast and gar-
lic butter, fish pie and even braised pork
belly with clams and salsa verde.
Go for the raw bar alone or go for a prop-
er dinner with all the fixings of oceanic
decadence, from caviar to oysters to crab.
Either way, go.
Lifestyle | Restaurants
WORDS BY
ZOE STRIMPEL
27
T
E
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R
E
S
T
R
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DEATH UNEXPLAINED
BBC1, 10.35PM
West London coroner Alison
Thompson and her team investigate
more mysterious deaths, including a
man hit by an Underground train.
HOWTO GROWA PLANET
BBC2, 9PM
In the last episode of the series,
Iain Stewart explores the part played
by grass in major changes to the
planet throughout history.
THE BRIT AWARDS 2012
ITV1, 8PM
James Corden returns to Londons O2
to host the annual music ceremony,
with performances by Adele, Bruno
Mars, Coldplay and Rihanna.
BBC1
SKY SPORTS 1
7pmSky Sports News at Seven
7.30pmSoccer Special 10.00pm
Revista De La Liga 11.00pm
Football Asia 11.30pmFootballs
Greatest Managers 12amUEFA
Champions League Highlights
1amFootball Asia 1.30amLive
Womens International Twenty20
Cricket 5am-6amUEFA
Champions League Highlights
SKY SPORTS 2
7pmLive UEFA Champions
League 10.15pmPoker 12.15am
International One-Day Cricket
2.45am-3.45amCycling
SKY SPORTS 3
7pmCycling 8pmInternational
One-Day Cricket 10.30pm
Golfing World 11.30pmBritish
Basketball 1.30amFIBA
Basketball 2amRevista De La
Liga 3amUEFA Champions
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1 2 3 4 5
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39
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.
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KAKURO
QUICK CROSSWORD
LAST ISSUES
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to nd as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Writing implements (4)
3 Contrite (5)
6 Ready money (4)
7 Spanish sparkling
white wine (4)
9 Former, onetime (9)
11 Tendon connecting
muscle to bone (5)
12 Building (7)
15 Farm with facilities
for livestock (5)
17 Person displaying
ostentatious or smug
cleverness (coll) (5,4)
18 Badgers den (4)
19 Salt of carbonic acid, used
in soap powders (4)
20 Hibernated (5)
21 Red eruption of the skin (4)
DOWN
1 Chooses (5)
2 Frightened (6)
3 Woman who
dances in a
chorus line (8)
4 Dwelling place (9)
5 Country
bumpkin (5)
8 Impressive by
reason of age (9)
10 Most fast
moving (8)
13 Form of address
for Roman
emperors (6)
14 Drug addicts (5)
16 Snag, difculty (5)
S
E
P
R
E D
T
I
S

4

4

4
S I D L E S J H
O R T O U C A N
F E A R A L V
T U T Y P E S E T
S U G A R O P I N E
O H I F S M A
A Z T E C T R U E R
P O S S E S S L D
N T P B A K U
G A T E A U T C
L R R O B E R T
9 1 8 6 9 1 6 3
7 2 9 8 6 2 4 1
7 2 1 8 9 6
2 4 5 1 3 1 5 2
9 5 9 5 8 4 7
1 2 4 3 6 2 8 9
6 8 7 5 9 3 1
6 3 9 1 3 6 2 4
9 8 1 2 4 7
5 1 3 2 2 9 7 1
8 7 9 3 7 8 9 6
4
4
4
4
4
4
4
4
4
WORDWHEEL
The nine-letter word was
DESTROYER
Lifestyle | TV&Games
CITYA.M. 21 FEBRUARY 2012 28
Sport
ENGLAND batsman Eoin Morgan
insists Alastair Cooks one-day side
can take a step towards mirroring the
achievements of the Test team in
reaching No1 in the world by com-
pleting a 4-0 series whitewash against
Pakistan today.
Back-to-back centuries for Cook, a
combined total of 11 wickets for
Steven Finn and a timely return to
form for Kevin Pietersen represent
the highlights of a series which has
seen England salvage something tan-
gible from a sobering tour.
Following Saturdays nine-wicket
victory, Cooks men go into todays
match at the Dubai International
Cricket Stadium on the verge of gain-
ing some measure of revenge for the
3-0 Test reversal, an accomplishment
that would advance both Englands
long and short-term objectives,
according to Morgan.
Where we are is six in the world;
where we want to be is No1 in the
world by the World Cup in 2015, he
said. We do want to win 4-0, and if
the opportunity arises we could give
players a bit of experience. But the
priority is to win the game.
Morgan was among a clutch of
batsmen who went into the Tests
against Pakistan undercooked and
struggled against spin as a result.
In order to prevent a repeat
England Cricket managing director
Hugh Morris confirmed yesterday
that several members of the current
touring party, including Andrew
Strauss and Ian Bell, will head to Sri
Lanka early with batting coach
Graham Gooch to acclimatise ahead
of two Tests in March and April.
We will be sending some of the
Test squad to Sri Lanka early, particu-
larly some of those who have not
been playing in the last month or so
[during the ODI series with Pakistan],
Morris said. They will be working
with Graham and one or two of the
coaches and support staff at getting
acclimatised and preparing on Sri
Lankan wickets.
Morgan eyes
up Pakistan
clean sweep
BY JAMES GOLDMAN
CRICKET
MAKING A SPLASH | Chinese duo strike gold in London

LONDONS magnificent new Olympic Aquatics Centre hosted its first day of competitive
action yesterday with Chinas divers taking gold in a World Cup event chosen to test the
venue. World champions Qin Kai and Luo Yutong won the mens synchronised 3-metres
springboard ahead of Russias Ilya Zakharov and Evgeny Kuznetsov, while Malaysias
Brian Nickson Lomas and Huang Qiang took the bronze. Picture: REUTERS
Results
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email sport@cityam.com
SPORT | IN BRIEF
Kauto star avoids illness
HORSE RACING: Champion trainer Paul
Nicholls has revealed some of his horses
are coughing but not stable stars
Kauto Star and Big Bucks. Nicholls con-
firmed the duo avoided the illness which
has struck at his Ditcheat stables less
than a month before the Cheltenham
Festival
Bennett to miss England clash
RUGBY UNION: Wales hooker Huw
Bennett looks likely to miss Saturdays
Six Nations clash with England because
of a calf injury.
Sport
30
T
HE pick of Tuesday night's
Champions League action sees
an under pressure Chelsea side
travel to one of the toughest
grounds in European football, the
Stadio San Paolo. Andre Villas-Boas
was supposed to be the new Jose
Mourinho but as yet, hes been unable
to get his Chelsea team anywhere near
the heights that their former manag-
er achieved. Having gone four games
without a victory, including a draw in
the FA Cup at Stamford Bridge this
past weekend against Birmingham,
this hugely important game could not
come at a worse time for Chelsea.
Napoli manager Walter Mazzarri has
done a great job since his arrival in
2009. Not only did the Azzurri finish
in third place in last seasons Serie A,
they have also qualified for the knock-
out stage of this competition, beating
Manchester City in the process.
Mazzarri is banned from the touch-
line for both legs of this tie but I dont
believe that will have any affect on the
final result. Napoli have a great record
at home where European football is
concerned and I have to side with the
Italians tonight.
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CHAMPIONS
LEAGUE TIPPING
in association with:
BRITISH heavyweight David Haye has
promised to co-operate with boxing
chiefs over his press conference brawl
with Dereck Chisora but was last
night still wanted for questioning by
German police.
Both fighters face possible criminal
charges and the threat of jail, as well
as bans from the British Boxing Board
of Control, following the fracas in
Munich on Saturday night.
German police quizzed Chisora but
searched in vain for Haye on Sunday,
and the 31-year-old confirmed yester-
day that he fled Germany earlier than
planned as he feared for his safety.
Chisora shouted Im going to shoot
you at Haye following the melee, and
Haye said: In light of the threats
Chisora had made it seemed far
more appropriate for me to leave the
hotel as quickly as possible.
He added: If requested, I shall hap-
pily assist the boxing authorities with
any investigation.
But German police said they still
wanted to quiz Haye and would ask
British counterparts to assist. Until
we speak to Haye, nothing more can
happen, said a spokesperson.
Haye ready
to talk but
still wanted
BY FRANK DALLERES
BOXING
Haye fled Germany early following the

melee with Chisora Picture: GETTY
STRUGGLING Arsenal were last night
urged to consider issuing new shares
in a bid to bolster their finances and
free up cash for new players.
The Gunners are poised to confirm
more healthy financial results, with
last summers sales of Cesc Fabregas
and Samir Nasri swelling their avail-
able cash to 50m.
But that could be obliterated if
they miss out on next seasons
Champions League, which would cost
the club around 45m, the Arsenal
Supporters Trust estimate.
The AST has asked the board and
majority shareholder Stan Kroenke to
reconsider a rights issue, should the
club miss out on the top four.
Kroenkes rival shareholder Alisher
Usmanov proposed the step in 2009,
arguing that the team needed fresh
capital to end their silverware
drought. The board rejected
the idea then as unneces-
sary, citing advice from
manager Arsene Wenger,
but the AST believes it is time
to pose the question again.
Incoming Financial
Fair Play laws would
allow new money to
be used to pay down
remaining stadium
debt, freeing up
funds for Wenger to
invest in his strug-
gling team.
Kroenke (right),
who will fly into
London for a board meeting this
week, may be reluctant to endorse
the move as it would force the
American to either plough mil-
lions of pounds into the club or
accept a watering-down of his
stock. Extra shares could fall
into the hands of Russian bil-
lionaire Usmanov, who has
been snapping up stock in a
bid to take his holding
over 30 per cent.
This could flush out
whether Kroenke is
just interested in
money, the ASTs Tim
Payton told City A.M.
An issue would mean
that he benefits from
having a stronger and
healthier club.
Villas-Boas
calls for club
to back him
Under-fire Blues boss chooses eve of Champions
League clash to request the support of the board
CHELSEA manager Andre Villas-
Boas has responded to fresh ques-
tions regarding his future by
challenging the clubs hierarchy to
underline their faith in his ability
by providing him with public back-
ing.
A 1-1 draw at home against
Birmingham in the FA Cup on
Saturday, a performance greeted
with jeers at the final whistle, trig-
gered fresh speculation ahead of
tonights Champions League clash
in Naples that the Portuguese
would fail to see out his first season
in the job.
Villas-Boas remains confident he
will avoid becoming the sixth man-
agerial casualty of the Roman
Abramovich era but, in front of
watching chairman Bruce Buck
and chief executive Ron Gourlay,
declared his words would continue
to ring hollow until a senior club
official put their head above the
parapet to offer words of support.
Its the richest part of Chelseas
history, full of trophies and suc-
cess, and you want to perpetuate
that into the future, said the 34-
year-old. To do that, you have to
sometimes make changes because
you cannot sustain the same habits
that you had in 2004.
These words would be more
valuable coming from the top. I
cannot keep saying them but, as
the voice of the club, I will contin-
ue to perpetuate this message
because this is what we believe in.
As a consequence of their
wretched domestic form the Blues
have been chalked up as underdogs
for tonights last 16 first leg clash
against a Napoli side who have
already ended Manchester Citys
involvement in the competition.
Having presided over such an
alarming fall from grace the for-
mer Porto boss was willing to con-
cede he is hardly on the firmest of
ground at present but revealed he
was confident enough in his role to
have already embarked on the task
of plotting for next season.
He said: In terms of the results
this year, the speculation is normal
given the cultural past of this foot-
ball club, but theres a different
perspective now.
Im confident about next year.
We had a three-year project to
change not only the team, but the
culture and structure of the club.
BY JAMES GOLDMAN
FOOTBALL
NAPOLI
CHELSEA
Arsenal urged to consider rights
issue to protect 50m war chest
BY JULIAN HARRIS
FOOTBALL
Villas-Boass Chelsea
side are underdogs
against Napoli
tonight
Picture: GETTY
31
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T
HE RYDER Cup might still be
seven months away but both
team captains will be casting
their eyes over events at the
Match Play Championship in
Tuscon this week.
It might be early in the season
but its certainly an opportunity,
should the draw go to form, for one
or two Europeans to gain a psycho-
logical advantage over potential
opponents in September.
Luke Donald will be looking to
defend his title and although he
struggled in his final round at last
weeks Northern Trust Open hes
got to be considered a contender.
If I was to select one European to
do well this week, however, it
would be Sergio Garcia. The
Spaniard, a couple of poor misses
with his putter aside, showed last
week hes in the sort of form which
helped him win consecutive titles
at the back end of 2011.
Garcias cause will be advanced
by the high-profile absence of Phil
Mickelson, who has chosen to take
a week off rather than continue his
fine recent resurgence. Lefty is as
physically fit as Ive seen him for 10
years and his game is back to
where it was at its peak as a result.
Bill Haass splendid victory in
California was somewhat overshad-
owed by the eccentric behaviour of
runner-up Keegan Bradley who
drew a lot of negative criticism for
his incessant spitting.
It wasnt particularly pleasant
viewing but I dont think he should
be punished. For his own benefit,
however, he could do with calming
down and refining his pre-shot
routine he was like a man pos-
sessed over those closing six holes.
Sam Torrance OBE won 21 European Tour
titles and is a former Ryder Cup captain.
Follow Sam on twitter
@torrancesam
Top Europeans can lay down
some early Ryder Cup markers
ENGLAND head coach Stuart Lancaster
admits he will shuffle his pack to accom-
modate the returns from injury of Manu
Tuilagi, Toby Flood and Courtney
Lawes ahead of Saturdays
crunch Six Nations showdown
against Wales.
Tuilagi (inset), who has
not represented his country
since leaping from a ferry in
New Zealand following
Englands World Cup exit in
October, returned from a
hamstring injury for Leicester
at the weekend and is in con-
tention to play some part against
Warren Gatlands men who, like the Red
Rose, have won two from two.
Its nice to have people like Manu
coming back into the equation, said
Lancaster. Itll be an interesting deci-
sion but I think hell be playing some
part.
Manu, Toby and Courtney havent
played a lot recently and to play interna-
tional rugby you have to be playing at
the sharp end of domestic rugby. Im
delighted they got some game
time at the weekend.
Lancasters regime has
thus far yielded morale-
boosting, albeit narrow vic-
tories away from home
against Scotland and
Wales.
The former Saxons coach
named the same team on
both occasions but admitted
he would make alterations for
the visit of Wales to Twickenham.
There will be one or two changes
from the Italy game and we certainly
think our bench will be an important
factor going into the second half, he
stated.
Lancaster ready tinker as
key trio return from injury
GOLF COMMENT
SAM TORRANCE
BY JAMES GOLDMAN
RUGBY UNION
FORM
They may be struggling to match the heights of last
seasons top three finish but Napoli are currently on a
decent run, having lost just once in nine Serie A
games and not conceded in more than six
hours. Fridays 3-0 win at Fiorentina left
them sixth in the table.
EUROPEAN CLOUT
Napoli are unbeaten in 11 European
games at the Stadio San Paolo, includ-
ing visits from Bayern Munich and
Manchester City in the group stage.
They deserve immense credit for advancing
amid that standard of competition, while play-
ing some of the most stylish, swashbuckling football
all in their first season in the Champions League.
THE BOSS
Walter Mazzarri, who started his coaching career as an
assistant at Napoli 14 years ago, has brought glory back
to the club since taking charge in 2009. However, the
50-year-old is suspended for both legs of the Chelsea
tie, following a dugout altercation against
Villarreal in the group stage. Assistant
Nicolo Frustalupi will take the reins in his
absence, and Mazzarri quipped: I'm
sorry I can't be on the bench but
Frustalupi is perhaps better than me
as a tactician.
DANGER MEN
The attacking triumvirate of Marek
Hamsik, Edinson Cavani (inset) and
Ezequiel Lavezzi are the envy of Europe,
although the latter is still to net in the Champions
League. Happily, the formidable Cavani has rattled four
in six games, while Hamsiks scheming and bursts from
midfield have garnered a further two. All three starred
in their vital 2-1 win over City in November.
KNOW YOUR ENEMY: NAPOLI
Madman Bielsa linked with
Stamford Bridge hotseat
FORMER Argentina and Chile coach
Marcelo Bielsa has been sounded out
about replacing Andre Villas-Boas at
Chelsea, according to reports in Spain.
Bielsa, whose eccentricity has earned
him the nickname Madman, has only
been in charge at Athletic Bilbao since
the start of the season. But he is said to be
willing to consider switching to Stamford
Bridge in the summer after hearing he
could be wanted by Blues chiefs.
Valencias promising coach
Unai Emery is also in the frame
to replace Villas-Boas, say
Spanish media, although
he lacks the pedigree of
the Argentine.
Bielsa endured a
mixed spell with his
national team, with a
disappointing 2002
World Cup campaign
offset by Olympic gold
and a Copa America runners-
up spot in 2004.
But he earned hero status with South
American neighbours Chile, leading
them to the 2010 World Cup following
an eight-year absence.
The 56-year-old, who snubbed inter-
est from Inter Milan to take over at
unfashionable Athletic last summer, is
known for his tactical rigidity, insist-
ing his teams press high up the
pitch in a 3-3-1-3 or 4-3-3 forma-
tion. Bielsas new players took
a few matches to adjust, fail-
ing to win any of their first
five league games, but are
now just goal difference
from a Champions League
place.
BY FRANK DALLERES
FOOTBALL
Nationality Argentinian Age 56

Notable jobs Velez Sarsfield (1997-98);
Espanyol (1998) Argentina (1998-2004);
Chile (2007-11); Athletic Bilbao (2011-)
Preferred tactics High pressing game based
on 3-3-1-3 or 4-3-3
FACTFILE | MARCELO BIELSA
FIRST PAKISTAN AND
THEN THE WORLD
MORGAN OUTLINES
ENGLAND TARGETS: P29
Capital thinking #13
Dont lose your cool
if you miss a move.
Emotions run high when it comes to
trading. Controlling your emotion is
crucial to avoid making costly mistakes.
Spread betting and CFDs carry a high level of risk to your
capital and you can lose more than your initial deposit. These
trading products may not be suitable for all investors so seek
independent advice if necessary.
Go to capitalspreads.com/freereport and download a copy
of our free report today and learn how successful traders stay
profitable and reduce risk.
Capital Spreads is a trading name of London Capital Group, which is authorised and regulated by the
Financial Services Authority and a member of the London Stock Exchange. Registered Address: 2nd
oor, 6 Devonshire Square, London, EC2M 4AB. Registered Number: 3218125.

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