Cityam 2012-04-18

BUSINESS WITH PERSONALITY
WARREN Buffett, the worlds most famous

investor and head of Berkshire Hathaway, has
been diagnosed with prostate cancer.
The 81-year-old told investors the stage one
disease is not remotely life-threatening or
even debilitating in any meaningful way.
Buffett will begin two months of daily
radiation doses in mid-July. He said treatment
for the cancer the most common form in
men will restrict his travel but not affect the
rest of his routine, adding: I feel great as if I
were in my normal excellent health and my
energy level is 100 per cent.
The disclosure will fuel speculation over the
identity of his successor at Berkshire
Hathaway, which employs more than 270,000
people in more than 70 businesses globally.
Buffett said in February he had identified his
successor but did not reveal their name and
said even the person chosen does not know.
Berkshire shares fell 1.5 per cent in after-
hours trading after Buffetts announcement.
BANKS have hired lawyers to look into
suing the EU if Brussels imposes new
restrictions on bonuses that they say
would wreck their businesses, City
A.M. has learned.
The Association for Financial
Markets in Europe (AFME), an indus-
try group representing banks across
the continent, has brought in top law
firm Clifford Chance to see whether it
can use a precedent set by a European
court ruling on footballers pay to
defend banks right to award bonuses.
The Bosman ruling by the
European Court of Justice (ECJ) estab-
lished that EU treaties give football
players the right to free movement
within the EU and the freedom to
negotiate their own pay with clubs.
The 1995 judgment set the scene for a
large increase in footballers pay.
Lawyers are examining whether a
proposal from MEPs to impose a fixed
one-to-one ratio between a bankers
salary and bonus meaning that a
www.cityam.com FREE
BY PETER EDWARDS
FTSE 100 5,766.95 +100.67 DOW 13,115.54 +194.13 NASDAQ3,042.82 +54.42 /$ 1.59 unc / 1.21 unc /$ 1.31 unc
ISSUE 1,614 WEDNESDAY 18 APRIL 2012
Certified Distribution
27.02.2012 till 01.04.2012 is 99,462
See
Page 24
the European Council, made up of
member states, the European
Commission, led by Michel Barnier,
and the EU parliament.
But banks are fearful because,
unlike with many radical MEP
changes, it is not clear if anyone on
the Commission or Council will want
to champion the politically toxic
cause of bankers pay.
Britains coalition government
rejected the idea of imposing its own
bonus-salary ratio earlier this year but
is already fighting on many fronts in
the argument over capital rules.
A spokesman for AFME said: Were
concerned about the proposals on
compensation, which fail to take
account of the significant progress
the industry has made and we partic-
ularly strongly oppose quantitative
ratios on pay.
But there is a sharp division among
Europes banks over the wisdom of
pursuing a case even if they dont get
their way. Some suggest that even if
they won, it would be tantamount to
political suicide.
EXCLUSIVE
BY JULIET SAMUEL
BANKSPLOT TOSUE
EU OVER BONUSES
European Commission president Michel Barnier has been vocal in criticising bonuses, making banks worried he could support MEPs
Sage of Omaha Warren Buffett tells investors he has prostate cancer
bonus could never be more than
basic pay contravenes the rights
awarded by the Bosman ruling.
MEPs have compiled a long list of
suggested changes to European capi-
tal rules, many of them to do with
pay. But it is the bonus-salary ratio
that has spooked banks the most
because they see it as the amend-
ment most likely to make it into the
final rules.
If it were brought in, they argue it
would turn their cost models upside-
down, since most top bankers are
rewarded mostly with a variable
bonus that changes depending on
their annual performance.
With EU employment law also
making it harder to fire under-per-
forming bankers, one expert said
that it would simply result in richer
and less motivated bankers.
MEPs amendments are often
vetoed during negotiations between
FRACKING BOOM: WHY
THE UK WILL BENEFIT
See Pages 34-35
HOW THE BLUES
CAN BEAT BARCA
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
STOCKBROKER Panmure Gordon has
poached the head of rival Seymour
Pierce to be its new chief executive.
Panmure will today tell the
market that Philip Wale is being
hired to replace Tim Linacre, who
announced his resignation in
December after a profit warning.
Wale is expected to leave
Seymour Pierce at the end of next
month. The former co-head of
European equities at Goldman
Sachs only joined Seymour in
December 2010 but could not resist
the job at Panmure, one of the
Citys oldest stockbrokers.
Philip Wale has done a fantastic
job in terms of recruiting a strong
team around him, a source told
City A.M. last night.
He leaves on good terms and is
looking forward to the challenge of
Panmure.
Staff at Seymour were told of
Wales departure yesterday
afternoon. The search for his
replacement has begun and a
shortlist of internal and external
candidates is being drawn up.
Wale joins Panmure at a
challenging time. It has suffered
from a delay in a number of big
investment banking deals which
forced it to issue a profit warning in
November 2011.
Both firms declined to comment
and Linacre could not be reached.
Panmure hires
Seymour boss
as new chief
BY PETER EDWARDS
G
E
T
T
Y
Spain slams Argentina for
its move to seize oil firm
SPAIN rounded on Argentinas move
to seize control of oil giant YPF yes-
terday, threatening swift economic
retribution for the nationalisation
plan.
Spanish industry minister Jose
Manuel Soria promised conse-
quences in the coming days. They
will be in the diplomatic field, the
industrial field, and on energy, he
said.
And Repsol, the current owner of a
majority stake in YPF, also pledged
legal action worth up to $10bn for
the manifestly unlawful and grave-
ly discriminatory act.
Shares in Repsol, which generates
more than a fifth of its net income
from the stake, fell six per cent yes-
terday. There were also reports in
the Chinese press that Sinopec had
been in talks with Repsol to buy
some of YPFs stake before Argentina
made its plans known.
Argentinian President Cristina
Fernandez de Kirchner on Monday
tabled legislation to reclaim YPF,
which Repsol has said is worth
$18bn as a whole.
European Commission president
Jose Manuel Barroso urged
Argentina to uphold international
business accords with Spain.
Europes trade chief will write to
his Argentinian counterpart to reit-
Canadian approached for BoE job
Mark Carney, governor of Canadas central
bank, has been informally approached to
be a candidate to replace Sir Mervyn King
as head of the Bank of England in June
next year. One of the worlds most
respected central bankers, Carney also
heads the Financial Stability Board, which
oversees global regulation. He was
approached recently by a member of the
BoEs court, the largely non-executive
body, that oversees its activities,
according to three people involved in the
process. Carney declined to comment.
O1 Properties eyes London IPO
One of Russias largest high-end office
owners is set to list on the London Stock
Exchange in the latest example of a
European property company looking to
diversify its financing. O1 Properties,
which owns about $2bn-worth of offices
in Moscow, will announce its plans today.
BTG allows investors to pull out
BTG Pactual has given retail investors five
days to pull out of its high-profile listing
next week after it emerged that the chief
executive of the Brazilian investment
bank had been fined by Italian regulators
for insider trading.
Missing month in the China inquiry
Britain failed to press China over the
death of Neil Heywood for nearly a month
after it emerged that the businessman
had died under mysterious circumstances,
ministers admitted yesterday.
Romney tells Obama to start packing
An emboldened Mitt Romney has told
President Obama to start packing in
readiness to leave the White House. The
comment came as a new opinion poll
showed him moving slightly ahead of the
President.
IKEA to sell TVs and sound systems
Flat-pack furniture took a leap into the
future as IKEA announced it is pressing
into the electronics market with a range of
TVs and sound systems built into its units.
Move elected House of Lords to
Manchester, says Lord Adonis
An elected House of Lords should move to
Salford like the BBC to save taxpayers
money, the former transport secretary
Lord Adonis has said in a letter to The
Spectator.
Nestl nears deal for Pfizer unit
Pfizer is close to selling its infant-
nutrition business to Nestl SA for at least
$9bn, people familiar with the matter
said.
Sky Deutschland seals German
football rights
Sky Deutschland retained key rights
yesterday for top matches of Germany's
Bundesliga, but competition means the
sum that Sky will pay to show matches is
set to roughly double.
WHAT THE OTHER PAPERS SAY THIS MORNING
US markets posted their largest gains
in a month yesterday after banks led
a string of quarterly results that beat
Wall Street expectations.
Goldman Sachs, US Bancorp, Coca-
Cola and Johnson & Johnson all
topped analysts forecast for the first
three months of the year despite the
still subdued US economy.
The Dow Jones industrial average
rose 1.5 per cent to close at 13,115.54.
The Standard & Poors 500 Index
gained 1.55 per cent to 1,390.78 and
the Nasdaq Composite climbed 1.82
per cent to 3,042.82.
People were very pessimistic,
marking down earnings
expectations so there was plenty of
room for the market to be positively
surprised, said Paul Zemsky, head of
asset allocation at ING Investment
Management.
The rises reflect a surprisingly
strong beginning to US earnings
season, with 29 out of the 39 S&P
firms to have reported so far beating
analysts estimates.
One bank narrowly came in below
expectations, however. State Street
said first-quarter profit fell 11 per
cent. The Boston-based custody
banks net income was $417m, or 85
cents a share, including preferred
stock dividends and other
adjustments. Analysts average
forecast was 86 cents a share.
Results relief
powers jump
on Wall Street
President Cristina Fernandez de Kirchners decision has proved popular in Argentina
2
NEWS
BY PETER EDWARDS
BY MARION DAKERS
The new jobs website for London professionals
To contact the newsdesk email news@cityam.com
CITYAMCAREERS.com
E
XCUSES, excuses, excuses. Once
again, the Bank of England has
suffered the humiliation of
seeing consumer price index
(CPI) inflation increase, rather than
drop, last month. The CPI measure
increased from 3.4 per cent to 3.5 per
cent; lets never forget that the target
that the Bank is meant to be sticking
to is two per cent and that if it moves
one per cent either higher or below
that the governor is forced to write an
open letter to the chancellor. There
have now been nine of these letters in
a row, starting in February 2010. The
Banks record over the past few years
has been poor, even though it has
tried to deemphasise its core
inflation-busting target.
Now, dont get me wrong: of course,
the situation is not as bad as it previ-
ously was and inflation is lower. Price
rises will probably dampen a little
EDITORS
LETTER
ALLISTER HEATH
Bank of Englands inflation over-optimism must now end
WEDNESDAY 18 APRIL 2012
more as the year progresses. But my
beef is that once again the Bank
has been shown to be too optimistic,
with no consequences. It is almost
unthinkable that it will be back or
even below target by the end of the
year, until recently the line peddled
and amplified by the many doves in
the City. Inflation on the CPI measure
in the first quarter as a whole was 3.5
per cent (the same as for March
alone): this was higher than the offi-
cial Bank projection of 3.35 per cent
made as recently as its February 2012
Inflation Report. In February 2011,
the Bank expected inflation to be
down to 2.86 per cent by the first
quarter (on the mean forecast of
unchanged policy). Adam Posen, the
MPCs arch-dove, said in an interview
in March 2011 that inflation would
tumble to 1.5 per cent by the middle
of 2012. As he put it, defending his
support for continued low rates and
greater quantitative easing: If I have
made the wrong call, not only will I
switch my vote, I would not pursue a
second term. A miracle could still
happen but it will be interesting to
see how that pans out.
It is key to understand why inflation
is rising. Simon Ward of Henderson
demolishes three excuses: it wasnt
tax. The CPI excluding VAT and indi-
rect tax went up by exactly the same
as the overall index. Food and energy
chancellor and an equally useless
reply simply wont do any more.
Britain is plagued both with an inef-
fective and confused monetary policy
and an equally over-optimistic fiscal
policy. Regarding the latter, the cur-
rent austerity until 2017 is just the
start. The IMF made it clear yesterday
that massive age-related and health-
care timebombs will require an 11.3
per cent tightening by 2030.
There is little hope of a real
acknowledgment of the true scale of
the fiscal disaster; but there is at least
some hope that the monetary confu-
sion could be tackled. The best way to
start is for the Banks next letter to
the chancellor to be much more
detailed, and for George Osborne to
reply properly. Its time to get a grip.
prices were a driver but remarkably,
much of this was domestic in origin,
not imported from overseas. The
killer fact here is that the S&P GSCI
all-commodities spot index rose by
only 1.2 per cent in sterling terms in
the year to March, down from 26.2
per cent in the prior 12 months. It
wasnt the weak pound either: ster-
lings effective rate rose by 1.5 per
cent between March 2011 and March
2012. The problem is excessively loose
monetary policy.
Candidates for the job of next gover-
nor should explain how they will do a
better job of fighting inflation or if
they believe that higher inflation is
on balance a good thing (a flawed
idea) explain why they think the tar-
get should be diluted. But the current
charade year after year of over-opti-
mistic forecasts, often wildly so, fol-
lowed by anodyne letters to the
erate our serious concerns while an
EU-Argentina meeting this week
would be postponed.
Under international rules, however,
Spain cannot limit imports from
Argentina.
But Argentinas pounce on YPF could
galvanise international opposition to
the nations claims of sovereignty on
Britains Falkland Islands, one analyst
said yesterday.
What could be bad news for
investors in Argentine operations
could in fact be good news in the long
run for those investing in the
Falklands. said Ian McLelland, head of
oil and gas at Edinson Investment
Research.
US RESULTS: page 6 and page 10

Repsol YPF SA
11 Apr 12Apr 13Apr 16Apr 17Apr
16.00
16.50
17.00
17.50
18.00
18.50
16.42
17Apr
GOLDMAN Sachs slashed costs and
boosted its dividend by over 31 per
cent to 46 cents yesterday as it
unveiled first-quarter results that beat
expectations.
Profits and revenues were down
compared to the first quarter of 2011
earlier but, like its rivals, Goldman
saw a significant bounceback in busi-
ness compared to the end of last year.
The bank also cracked down on
costs, laying off 900 people in the
quarter so that it has now shrunk its
workforce by 3,000 over a year.
That brought its total pay pot down
by 16 per cent to $4.4bn, although
that was still nearly double what it
had to pay out in the fourth quarter.
Revenues were down 16 per cent to
$9.9bn year-on-year, but up 64 per
cent compared to a quiet fourth quar-
ter of 2011, when investors sat on
their hands due to the euro crisis.
Similarly, net income was down 23
per cent to $2.1bn, but that was more
than double what the bank made in
the fourth quarter.
The recovery was driven by a strong
rise in debt underwriting revenues,
which more than doubled, and high-
er trading volumes in fixed income
and equities, where revenues rose 154
Goldman cuts
pay and boosts
its dividends
BY JULIET SAMUEL
per cent and 100 per cent respectively.
Chief executive Lloyd Blankfein
said: Stronger global markets, togeth-
er with the firms deep and broad
client franchise, drove improved
results across most of our businesses.
Markets have been boosted in 2012
by a 1 trillion cash injection by the
European Central Bank in December,
which freed up interbank markets.
On a call with analysts, however,
chief financial officer David Viniar
warned that there have been signs in
the last fortnight that the effects of
the ECB action are already wearing off.
Two weeks doesnt really tell you
anything but [the euro crisis] has had
somewhat of a chilling effect in
Europe as markets stalled, he said.
Goldman Sachs Group Inc
115
116
117
119
118
120
$
116.86
17Apr
THE BANK of Spain yesterday
warned that some of the countrys
banks may face difficulties
meeting tough requirements set
by the government.
As the central bank approved all
135 Spanish institutions plans to
boost capital, it said the plans
submitted included five merger
and acquisition operations in
which 11 institutions are
participating.
No details were given in the
statement on which banks would
be involved.
BY HARRY BANKS
The government set strict
recapitalisation requirements in
February to clean up the sector
after a property crash and in an
effort to reassure investors its
ailing lenders won't need
international help.
The Bank of Spain said 90
lenders were already complying
with the capital requirements
while 45 had presented plans to
comply by the end of the year.
Overall Spain's banks will need
53.8bn, with additional
provisioning needs totalling
29.08bn and higher core capital
requirements of 15.58bn.
3
NEWS
cityam.com
GUARDSMEN MARK 100 DAYS TO GO UNTIL LONDON 2012 OLYMPICS
GUARDSMEN
wearing traditional
dress have gathered
at Horse Guards
Parade in central
London to mark 100
days to go until the
start of the London
2012 Olympic
Games. The 260
Guardsmen are
members of the
Grenadier,
Coldstream, Scots
and Welsh guards.
The London
Olympics will kick
off on 27 July with
the Opening
Ceremony at the
Olympic Stadium.
SHAREHOLDERS in Citigroup dealt a
blow to the banks management by
voting down its executive pay
proposals yesterday.
Although the vote is advisory
rather than binding, it is a major
embarrassment to chief executive
Vikram Pandit and reflects investors
fury that his promise to deliver a rise
in the firms dismal one cent
dividend has not yet been fulfilled.
Just 45 per cent of shareholders
voted for the remuneration report,
meaning that under new Dodd-
Frank regulations, the final tally is a
55 per cent vote against it.
Pandit was blocked from
increasing the banks dividend pay-
out by the Federal Reserve, which
said that although the bank had
passed its stress tests, it was not
sufficiently secure to start increasing
shareholder rewards.
And Pandit suggested yesterday
that it might not be possible to
increase the dividend until next
year. Despite that, his own pay was
restored. He had been symbolically
working for just $1 per year to
demonstrate his commitment, but
that was thrown out in 2011, when
he was awarded a $15m pay package.
The vote at Citis annual general
meeting in Dallas is a warning shot
to other banks.
Shareholders vote down Citi
managements remuneration
BY JULIET SAMUEL
Spanish banks could merge to
help meet capital benchmarks
BOTTOM LINE : Page 6

BOTTOM LINE: Page 6

MORE: P26-29

MARKS & SPENCER reported worse-
than-expected fourth quarter sales
yesterday after the retailer was hit
by a shortage of stock across some of
its best-selling womens clothing
lines.
Chief executive Marc Bolland said
the company had been caught out
by Februarys cold snap, when it
failed to meet demand for items
such as coats and knitwear.
We sold 100,000 items on
Marks & Spencer sales
hit by shortage of stock
BY KASMIRA JEFFORD
knitwear and we could have sold
about 300,000 items, so that was a
miss we had simply in our merchan-
dising planning, he said.
Bolland said the group had also
underbought in other areas such as
footwear, where it could have sold
twice the amount of pumps than pre-
dicted.
That was a miss in our merchan-
dising planning. We were bang on-
trend but we should have had a bit
more of some of our lines, he said.
The shortages in stock led to total
DO YOU THINK M&S WILL STILL BE
AROUND IN 5O YEARS?
Interviews by Jessica Abrahams
Yes. The quality is much higher than other
stores and there will always be demand for
higher quality goods. It is increasingly seen to represent
good value, which is obviously important at the moment.
These views are those of the individuals above andnot necessarily those of their company
SUE LEE
PML GROUP
Yes, I think so. It's a strong brand that is both

well-known and well-liked. I think it will be
the food that holds it up though; I'm not sure if it will
survive as a clothing brand.
STEFAN BLOM
SUP GROUP
Yes. It's been around for years and my opin-
ion is that it is a solid brand. It's well-enough
known and respected in this country at least to survive;
the picture may be different overseas.
BALU RAJGURU
K&L GATES
CITYVIEWS
4
NEWS
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MK15 8BA. Prices correct at time of going to press 04/12.
like-for-like sales falling by 0.7 per
cent in the in the three months to 31
March. Analysts had forecast a rise of
around 0.8 per cent.
Merchandise sales which includes
clothing, footwear and homewares
at stores open more than a year fell
2.8 per cent against analyst expecta-
tions of a 0.2 per cent rise.
Total clothing sales fell by 0.3 per
cent after the shortages in wom-
enswear offset a good performance
across other categories like chil-
drens clothing and menswear.
Homeware sales fell 7.5 per cent,
but this was largely due to Marks
& Spencers decision last month
to stop selling electricals.
Marks & Spencer said its food
division performed well
against tough comparatives
with sales increasing by one per
cent, in the quarter.
International sales declined
by two per cent after its suc-
cessful store opening in Paris
failed to offset weakness in
Ireland and Greece.
The company said it was
sticking to plans to revamp
its stores but said this would
cost 100m less than the pre-
vious guidance of 600m.
FOOD +3.1%
Marks & Spencer chief
executive Mark Bolland
cityam.com
STRONG FOOD RESULTS
IN BRIEF
Aquascutum calls administrators
nAquascutum, the British luxury
clothing brand has gone into
administration, the latest high-profile
name to fall by the wayside in the
consumer downturn. FRP Advisory,
the restructuring, recovery and
insolvency firm, said two of its
partners had been named
administrators of the 161-year old
loss-making firm, which employs 250
people in the UK.
Dairy Crest loses Tesco contract
nDairy Crest said yesterday it has
lost its contract to supply milk to
Britain's largest retailer Tesco and
that it was looking at closing two
facilities, which will affect about 470
staff. The manufacturer of Country
Life butter, Cathedral City cheese and
flavoured milk drink Frijj, said Tesco
had decided not to renew its contract
with the company after its expiry in
July. Tesco declined to specify the
reasons behind its decision, but said
there would not be a tender process
to replace Dairy Crest with another
supplier.
Next chief executive pay falls
nLord Wolfson, the chief executive
of Next and a Conservative peer, has
taken a cut in his salary and long
term bonus, despite the fashion
retailer reporting record earnings per
share in the year to the end of
January 2012. Wolfson earned
1.49m in salary, annual bonus and
benefits, down from 1.76m during
the previous period. The firm has also
capped his long term incentive
payment plan at 2.5m per year .
DIRECT
SALES
+22.8%
5
NEWS
cityam.com
VISIT YOUR LOCAL STORE
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*Subject to terms and conditions. Bracelet shown for display purpose only.
BETHANY HOCKING
INVESTEC
Fourth quarter
trading g-
ures are weak but cost
savings appear to
have saved the day,
with no change to full
year expectations...
For 2013 we have the
rst guidance - net
this is negative, with
cost growth worst than our forecast. The only
good news is the downgraded capex guidance.
Overall, however, this is a disappointing state-
ment, and we place our forecasts, target
price and rating under review.
ANDREW WADE
NUMIS
JOHN STEVENSON
PEEL HUNT
ANALYST VIEWS
DOES MARKS & SPENCERS STATEMENT AFFECT
YOUR FORECASTS FOR NEXT YEAR ? By Kasmira Jefford
BURBERRYS shares retreated more
than five per cent yesterday despite
the luxury clothing brand posting
an 18 per cent rise in second half
sales, driven by strong sales in
Europe and China.
The 156-year-old fashion label
posted total sales of 1.027bn
for the six months to 31
March, with fourth
quarter revenue up 16
per cent to 453m,
slightly below analyst
forecasts of 457m.
The group has
enjoyed an outperfor-
mance at European
stores in the last quar-
ter, finance director
Stacey Cartwright told
City A.M, highlighting
particularly strong
growth in flagship
markets like Britain
and France.
Cartwright said
mens tailoring
and accessories
had also enjoyed
particularly
strong growth.
The company
said retail sales,
which now account
Burberry posts
rising revenues
but shares drop
BY KASMIRA JEFFORD
for 72 per cent of group sales, rose
almost a quarter to 743m while
wholesale and licensing sales rose
seven per cent and five per
cent.
In Asia Pacific, retail and
wholesale revenues were
up 37 per cent while the
US grew by seven per
cent. Sales in Europe,
where the ongoing debt
crisis has overshad-
owed consumer
spending, rose by 11
per cent.
Burberry said it will
increase its retail sell-
ing space by 12-14 per
cent this year, with
opening focused on
larger stores in flag-
ships and emerging
markets.
Investec analyst
Bethany Hocking
described the fall
in share price as
a pause for
breath after
reaching a
record intra-day
high.
Burberry is modelled
by Cara Delavigne
Fourth quarter
trading looks
slightly disappointing,
with general merchan-
dise and international
sales falling behind
expectations... This
quarter is also likely to
remain subdued given
the tough Easter com-
paratives. Once again, cost efciencies will under-
pin market forecasts. Looking to 2013, guidance is
broadly in keeping with current assumptions,
although a lower capex on store update
should be taken well.
Marks &
Spencer has
posted fourth quarter
trading light of expec-
tations. Food put in a
solid performance in a
competitive market
and against tough
comparatives while
general merchandise
suffered from the planned exit from technology.
Although further cost saves will see the group
reach full year expectations, with guidance
eshed-out, we lower our March 2013
forecast by three per cent.
Marks and Spencer Group PLC

11 Apr 12 Apr 13 Apr 16 Apr 17 Apr
355
360
365
370
375
380 p
358.70
17 Apr
GROUP SALES +0.8%
CLOTHING -0.3%
TOTAL UK SALES +1.2%
LIKE-FOR-LIKE UK SALES -0.7%
HOME -7.5%
BOOST RETAILERS SALES
AN INFLUENTIAL group of MPs hit
out at George Osbornes handling of
the budget today, accusing him of
basing the 50p tax change on highly
uncertain figures, adding extra
complexity around the child benefit
regime and failing to stop leaks.
Citing the highly uncertain
impact of the 50p tax, the Treasury
Select Committee called for a
comprehensive assessment of the
effect on the exchequer of the new
45p rate.
Changes to the child benefit
system may also prove
unsatisfactory, the report warned.
The removal of benefits from
those earning over 60,000, and
sliding scale below that will cost
100m in HMRC staffing costs and
8m in IT spending, it found, while
failing to take benefits away from
some high-earning families.
The enormous level of pre-Budget
leaking was strongly criticised, with
claims the chancellors behaviour
has further eroded trust in politics.
In particular, it firmly rejected
George Osbornes claims that the
nature of coalition politics meant
leaks were more likely, and called for
the government to review its
practices ... for preserving budget
confidentiality.
Top MPs angry
at Osbornes
Budget leaks
BY TIM WALLACE
STATE Street said yesterday that first-
quarter profit fell 11 per cent as com-
pensation and other employee
benefits surged at nearly three times
the pace of operating revenue.
State Street said compensation and
employee benefits in the first quarter
rose nine per cent from a year earlier
to $1.06bn (665m). The bank attrib-
uted the increase to worker demo-
graphics, merit increase awards from
last year, and hires from new business
and acquisitions.
Total operating revenue rose just 3.1
percent to $2.4bn.
State Street chairman and chief exec-
utive Jay Hooley said some compensa-
tion expenses were accelerated into
the first quarter because the bank had
more people who were age 55 with five
years of service. As a result, expenses
related to stock-based awards to those
employees are recognized in one quar-
ter versus being spread out over several
quarters, Hooley explained.
The Boston-based custody banks net
State Street hit
by rising cost
of employees
BY HARRY BANKS
income was $417m, or 85 cents a
share, including preferred stock divi-
dends and other adjustments. That
compared with $466m, or 93 cents a
share, in the year-ago period.
Assets under custody and adminis-
tration, a key driver of fees, were $23.2
trillion at the end of March, compared
with $22.6 trillion a year earlier.
Custody bank activities include
managing investments, lending
stocks, trading foreign currencies,
tracking asset valuations and provid-
ing accounting services to mutual
funds.
B
OTH Goldman and Citi have
seen a strong recovery this
quarter, as markets, flooded
with shiny new euros from the
ECB, have had to do something with
the cash.
They have also both benefited
from a backlog of debt-hungry banks
and corporates that were holding off
on issuance for the latter half of
2011.
In the current climate, Goldman
has wisely taken the opportunity to
bump up its dividend by over 30 per
cent for its battered investors.
But, Citis attempt to hike its pay-
out was blocked by the Federal
Reserve, with disastrous
consequences for its management
yesterday as angry investors voted
down their bumper pay packets.
The contrast is curious, not least
because of the comparable capital
ratios of the two banks: Goldman
revealed a tier one common equity
ratio of 12.9 per cent using Basel I
definitions versus Citis 12.4 per
cent lower, but not drastically so.
The issue underscores that when it
comes to capital, confusion still
reigns. The Feds stress tests use one
definition, Basel I another and Basel
III yet another.
The key is which bank is more
adequately prepared for a
resumption of crisis mode once the
intoxicating effect of all those euros
runs out and run out it will.
Asked why M&A activity has yet to
recover despite strong corporate cash
balances, Goldman CFO David Viniar
was clear: Europe is the number one
thing. [CEOs] want to see growth for a
longer period and resolution in the
Eurozone. Dont we all?
BOTTOM
LINE
JULIET SAMUEL
State Street Corp
43.50
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43.00
43.75
44.00
44.25
44.50
44.75
$
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17Apr
CONTROVERSIAL new European
rules planned for hedge funds could
threaten financial stability, the
global industry trade body has
warned.
The European Commission has
made significant and wide-ranging
departures from regulatory advice,
claims to the Alternative Investment
Management Association.
If implemented without
modification, the proposed
Commission text could be disruptive
to the asset management industry in
the EU and globally, potentially
Hedge funds hit back over new
European rules on the industry
BY PETER EDWARDS undermining some of the stated
policy goals of investor protection
and financial stability, AIMA said
yesterday in an analysis of the draft
regulation.
The industry is particularly
concerned about two areas the
protectionist implications of the
third countries section, which
would stop EU investors putting
money into non-EU funds, and the
way that the directive seeks to
curtail leverage.
Syed Kamall, the Conservative
MEP for London, has also criticised
the commission for going back on
what had been agreed previously.
US BANCORPS first-quarter profit
topped analysts expectations
yesterday as mortgage banking
revenue surged.
Like other large banks, US Bancorp
received a boost as borrowers
refinanced home loans at low
interest rates. Mortgage banking
revenue more than doubled to
$452m.
US Bancorp has been building up
its mortgage business while some
large banks pull back, helping it gain
US Bancorp beats Wall Street
forecasts on mortgage sales
BY HARRY BANKS
market share from large and small
players, chief executive Richard
Davis said in a conference call with
analysts.
We see a market share
[opportunity] that you only get once
in a lifetime, and we intend to enjoy
it now, Davis said.
The bank expects to become a top
five player in US mortgage
originations and servicing, he said.
The company reported first-
quarter net income of $1.3bn, or 67
cents per share, up from $1.05bn, or
52 cents per share, a year earlier.
VOICE OF THE CITY : Page 14

6
NEWS
cityam.com
AIMA, led by chief executive Andrew Baker, has called the changes disruptive
Goldman knows the ECB flood cant last forever
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KEN Livingstone yesterday said he
was still not persuaded by the may-
oral system because it concentrates
too much power in one persons
hands.
Its easy to avoid serious scrutiny
Boris has had six press conferences in
four years. When you come to see
how the assembly gets to question
him once a month thats not the
same as a detailed scrutiny by a
council committee.
It leads to a degree of celebrity pol-
itics which means the issues go
down the agenda.
Ken: Mayor has
too much power
for one person
Speaking at a lunch for reporters,
the Labour mayoral candidate said he
was meeting lifelong Labour voters
who were voting for Boris Johnson
because he makes people laugh.
I find people on the doorstep who
are natural Labour voters but say
Boris is funny. I didnt come into poli-
tics to make you laugh if I wanted
to make you laugh Id have been a
stand-up comedian.
We should have a compromise:
Boris should let me be mayor and Ill
support him to be permanent host of
Have I Got News For You. That would
be each of us doing what we do best.
Livingstone also responded to those
who criticised his decision to cry
while watching his own party broad-
cast: Those tears in the corner of my
eye were absolutely bloody genuine.
Thats why Im busting a gut to win.
Ken Livingstone remains behind Boris Johnson in the polls ahead of the 3 May election
8
NEWS
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AMERICAS share of the global M&A market has
hit a record low, according to research by data
provider Dealogic.
Deals targeted at the US market made up just
30 per cent of global M&A volume thus far in
2012, a record low year-to-date share, down from
34 per cent at the same point in 2011.
American M&A volume has hit a mere $202bn
(126bn) so far this year, driven by strong show-
ings from oil & gas ($34bn), followed by the tech-
nology ($30bn) and healthcare ($28.6bn) sectors.
But it is still a far cry from 1998 when US tar-
geted M&A activity accounted for 65 per cent of
the global volume.
Goldman Sachs leads the 2012 US targeted
M&A advisory ranking with $63.7bn, followed
by JPMorgan with $62.1bn and Citi with
$40.8bn.
US M&A share sinks
to lowest on record
BY JAMES WATERSON
US President Barack Obama, whose political
fortunes are threatened by rising gasoline
prices, proposed new measures yesterday to
reduce oil market manipulation that are
unlikely to get support from a divided Congress.
Obama called on lawmakers to raise civil and
criminal penalties on individuals and
companies involved in manipulative practices.
He also pressed for more money to fund the
agency charged with policing the markets to
hire more cops for oversight and upgrade old
technology.
We cant afford a situation where
speculators artificially manipulate markets by
buying up oil, creating the perception of a
shortage, and driving prices higher, only to flip
the oil for a quick profit, Obama said at the
White House.
We should strengthen protections for
American consumers, not gut them, he said.
Republicans called the effort a political
gimmick, and said the new measures would not
help Americans struggling with high fuel prices.
Obama pledges oil
trade crack-down
BY HARRY BANKS
BY JAMES
WATERSON
MAYORAL
ELECTION
THE IMF upgraded the UKs GDP
growth forecast yesterday, arguing
that the strong deficit reduction
plan was boosting confidence in the
country, as it said the global
outlook was also improving.
UK growth should now come in
at 0.8 per cent this year, the
International Monetary Fund said, a
0.2 percentage point rise on
Januarys predictions.
The worlds growth is forecast to
hit 3.5 per cent, though the
recovery remains fragile, not least
because of the ongoing risk of a
relapse in the Eurozones sovereign
debt crisis.
The Eurozones outlook was also
upgraded, though a 0.3 per cent fall
in GDP is still expected.
Underlining the weakness of the
Eurozones economy, the IMF
described the recent boost from the
European Central Banks 1 trillion
in cheap loans to banks as only
helping temporarily.
Countries were also warned
against implementing excessively
harsh austerity programmes.
IMF upgrades
its forecast for
growth in UK
BY TIM WALLACE
G
E
T
T
Y
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SHARES of Daily Mail and General
Trust sank by seven per cent yesterday
morning as the publishing group
warned that half year profits are
expected to fall as revenues from its
regional newspapers continue to
wane.
Northcliffe Media, DMGTs regional
newspaper publishing division, saw
revenues decline by 10 per cent in the
period as advertising sales dropped 11
per cent. Slightly offset by increased
cover prices, circulation revenues fell
five per cent.
DMGT finance director Stephen
Daintith told City A.M., Traditional
revenues in this industry are migrat-
ing to the internet, and Northcliffe
Media has struggled accordingly.
But reinvigoration of the business,
including changing the frequency of
some titles, is leading to improved
margins and good cash generation.
Four Northcliffe dailies have made
the transition to weekly papers in the
last year, of which three saw a consid-
Regional slump
leads to DMGT
profit warning
BY LAUREN DAVIDSON
erable jump in circulation figures
despite DMGT reporting a seven per
cent circulation revenue drop in its
regional division in the first quarter.
First half revenues declined by two
per cent in the groups national pub-
lishing arm, Associated Newspapers,
despite a four per cent boost in circula-
tion revenues due to the Daily Mails
increased cover price and an improve-
ment in market share.
But Mail Onlines revenues jumped
69 per cent. The website is expecting to
hit the 100m monthly visitor mile-
stone in the next two months.
Yahoos new chief executive Scott Thompson has overseen rising turnover
Daily Mail and General Trust PLC
420
430
440
450
460
p
423.80
17Apr
10
NEWS
cityam.com
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THE BBC spent 150,000 on private
investigators in the decade to mid-
2011, its director of editorial policy
and standards David Jordan said
yesterday.
Speaking at the Home Affairs
Select Committees inquiry into
the case for statutory regulation of
private investigators launched in
the wake of the phone-hacking
scandal Jordan admitted that the
BBC has not made a conscious
decision not to hire private eyes.
We havent ruled out the
possibility [of using them], he said.
BBC paid 150k
on private eyes
BY LAUREN DAVIDSON
LONDONS analogue television
signal was turned off in the early
hours of this morning in the latest
step of the UKs digital switchover.
BBC director general Mark
Thompson and Arqiva chief
executive John Cresswell last night
drew a line under 75 years of
analogue TV broadcasts to the
capital as part of the nations
upgrade to digital television.
The 630m project will see up to
50 digital Freeview channels reach
the homes of 98.5 per cent of the
population.
Switch-off for
analogue TV
BY LAUREN DAVIDSON
YAHOO last night reported a modest
uptick in first-quarter revenue, its
first growth in three years, while
Intel and IBM also beat forecasts.
Yahoo also said its net income was
$286m in the first quarter, up 28 per
cent on a year ago, in new chief Scott
Thompsons maiden results.
While IBMs sales missed Wall
Streets expectations, a seven per cent
rise in net income to $3.07bn was
above forecasts and prompted the
firm to raise its outlook for the year.
And chipmaker Intel forecast
revenues of $13.6bn for the current
quarter, above expectations, though
its shares fell as investors had
expected more.
Yahoo, IBM and
Intel beat Street
BY HARRY BANKS
COCA-COLA posted higher-than-
expected quarterly results
yesterday after the world's largest
soft drink maker sold more
beverages, even in developed
markets with economic worries,
fuelling hopes conditions are
improving.
Coca-Colas first-quarter net
profit was $2.05bn, up from $1.9bn
a year earlier.
Revenue rose six percent to
$11.14bn, helped by a five per cent
increase in overall volume and a
three per cent increase in prices
and mix of products sold.
But the firm said commodity
costs will rise again this year.
Coca-Cola sales
are on the rise
BY HARRY BANKS
QUARTERLY earnings rose at US
healthcare firm Johnson & Johnson,
but declining sales remain a
challenge for the firm.
Net earnings rose to $3.91bn, up
12.5 per cent on a year earlier.
Revenue slipped 0.2 per cent to
$16.14bn, which J&J blamed on the
strength of the US dollar.
Analysts were impressed by the
speed at which J&J is managing to
cut costs in sales and administration
while keeping up spending on
research and development.
Thats something theyve been
promising for a long time and we
havent really seen until now, said
Gabelli & Co analyst Jeff Jonas.
J&J keeps a lid
on its expenses
BY HARRY BANKS
G
E
T
T
Y
Deadline looms again for the
telecoms giants vying for CWW
AN OFFER for Cable & Wireless
Worldwide (CWW) is expected
imminently as Vodafone and
Tata Communications have until
tomorrow to table a bid.
Tata Communications is
deemed the more likely bidder
for the ailing cable company,
although Vodafone was first to
express an interest when press
speculation prompted a
statement in February.
Espirito Santo analyst Nick
Brown told City A.M. that Tata is
BY LAUREN DAVIDSON likely to voice an offer by
tomorrows deadline, which
would give Vodafone another
month to put up or shut up.
There has been quite a lot of
speculation that Vodafone will
not bid at all, as it has been very
tight-lipped throughout the
process in contrast to Tata,
which has publicly been raising
$2bn to make an offer, Brown
said.
The Indian communications
company has a handful of banks
financing a potential bid and is
expected to offer 45p a share for
the UK-listed firm.
Brown said Tata could come in
lower, in the high 30s, to leave
room for the price to be pushed
higher by a counter bid or
shareholder demand.
Shareholders are unlikely to be
impressed by an offer below 40p,
but if Vodafone enter a bidding
war the price could be pushed up
to 50p, which could eliminate
Tata.
CWWs share price has risen by
80 per cent, closing yesterday at
36p, since Vodafone announced it
was considering an offer.
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11
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VODAFONE yesterday threatened the
Indian government with internation-
al arbitration, warning that it will not
go down without a fight over the
countrys proposed retrospective tax.
The telecoms giant served the
Indian government with a Notice of
Dispute via Vodafones Dutch sub-
sidiary, which has a bilateral invest-
ment treaty with India.
Vodafone said that Indias retrospec-
tive tax proposals amount to a denial
of justice and a breach of the Indian
governments obligations under the
bilateral investment treaty to accord
fair and equitable treatment to
investors.
The company added that the new
legislation would have serious conse-
quences for a wide range of Indian
and international businesses, as well
as direct and negative consequences
for Vodafone.
Vodafones victory in the Indian
Supreme Court earlier this year over a
$2.2bn tax bill from its 2007 acquisi-
Vodafone plans
war with India
over new taxes
BY LAUREN DAVIDSON
tion of Hutchison Whampoas Indian
arm prompted India to propose a ret-
rospective tax on 50 years of overseas
deals.
George Osborne, as well as the CBI
and other trade bodies, has spoken out
against the new laws, which would
reverse the judgment of several cases,
including Vodafones.
The bill is set to be approved by the
Indian government next month.
The tax could also affect Kraft over
its 2010 purchase of Cadbury, and
SABMiller which bought Fosters in
India in 2006.
Vodafone, led by Vittorio Colao, will fight Indias proposed retrospective tax
Vodafone Group PLC
170
171
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169
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173
174
p
172.50
17Apr
SHARES of HTC Corp fell as much
as six per cent yesterday after a
change in its chief financial
officer and the imminent launch
of a new phone by arch rival
Samsung Electronics raised
concerns over the Taiwanese
firms recovery.
HTC said in a statement on
Monday it had appointed Chia-Lin
Chang, a former partner at
Goldman Sachs in Taiwan who has
also worked as an engineer at
Motorola, as new chief financial
officer, replacing Winston Yung.
HTC shares fall
after shake-up
BY HARRY BANKS
ORACLE considered building its
own smartphone to compete with
Apple and Google, but decided it
was a bad idea after a weeks-long
cost and market analysis, chief exec
Larry Ellison said yesterday.
Oracle had pondered at one
point buying Blackberry-maker
Research in Motion, he added.
On the second day of a legal
battle between Oracle and Google
over Java patents used in Android
software, Ellison added that Oracle
felt it lacked in-house expertise on
smartphones.
Oracle eyed up
BlackBerry buy
BY HARRY BANKS
WITH all the talk of who will succeed
Sir Mervyn King at the Bank of
England (kicked off by this paper last
week), the governor is wasting no
time in setting up things for his retire-
ment next year.
A source gets in touch to let The
Capitalist know that Merv was spotted
strolling along the glass corridors of
the FSA yesterday, where he
dropped by to let the incoming
bean-counters of the Prudential
Regulation Authority (PRA)
know whos boss.
Among his handy tips
for how to get along in
the staid and lower-
paid atmosphere of
Threadneedle Street,
which will rule the
Merv: stability,
not money, is
my motivation
PRA once the FSA is dismantled, was
an inspirational call to arms: regula-
tors should not be motivated by finan-
cial rewards, he told the assembled
number crunchers, but by the lofty
goal of financial stability.
At least hes leading by example: Sir
Merv generously refused a 100,000
pay rise in 2008, which was lucky,
because his decision was shortly fol-
lowed by the near-collapse of the
entire financial system.
Our spy reports that Kings FSA
audience was less than impressed.
The reaction was that
its easy for Merv to say that
on his salary, said our
source of the 300,000-a-
year guvnor. Little won-
der Kings against
bonuses none of his
pay is performance-
related.
L
A
U
R
A

L
E
A
N
/
C
I
T
Y

A
M
THERES plenty of construction work going on in the City, especially in the area
immediately west of Bank station, where vast tracts of land have been given over to
building sites. These cranes (pictured above) are opposite the Lloyds of London
building.
A BIRDS EYE VIEW OF THE CITY
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist
12
cityam.com
cityam.com/the-capitalist
THECAPITALIST
Weve all got a rif list, said the
head of an investment bank to
the Capitalist yesterday. But what
exactly is a rif, we wondered, or should
it be a riff, as in a series of guitar notes?
A rif is spelt with one f and denotes a
Reduction In Force, according to the
Capitalists banking contacts.
The term is in fairly common parlance
these days and is used to refer to a
banker who has been made redundant
or is about to be. One can be riffed
(probably spelled with a double f) or
one can rif somebody else. By all
accounts Credit Suisse has a big rif right
now. Indeed theres a lot of riffing
going on, as ever, so now you know.
Slideshow Gallery Map Trip details
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Niagara Falls. At refreshing prices.
August 2 16, 2011
See
notes
DRINKS group Diageo, the financial
public relations agency Tulchan, and
a number of media outlets are sign-
ing up for the Diageo City
Challenge a five-a-side football
tournament taking place on 20 May
at the Bank of England Sports Centre
in Roehampton. All proceeds will be
going to the Stroke Association.
Last years event saw a team from
the Times move freely over its pay-
wall to scoop up the trophy but
there is bound to be increased com-
petition this year. A City A.M. team is
limbering up.
Prepare for the
Diageo trophy
Sir Merv says the perks
are second to the mission
Frankie Dettori,
British Champions Series Jockey
Ive trained
my whole life
for this. You
have until
5th May.
The worlds nest at racing meets
the worlds nest fantasy racing game.
Its free to enter so get your stable ready
before the Series starts on 5th May,
live at Newmarket and on Channel 4:

britishchampionsseries.com
/britishchampionsseries

R
a
c
i
n
g
f
o
t
o
s
.
c
o
m
BNP Paribas has revealed plans to
bring its London staff, currently
scattered across the capital, into two
sites in the centre of town.
The French bank said yesterday
its corporate and investment
banking business will be based in
Harewood Avenue in Marylebone. It
moved to the street in 1997 and
bought more space there two years
ago.
It will also bring its investment
solutions arm into a new 350,000
square foot site in Kings Cross.
BNPs real estate team will develop
the centre and then move into it
alongside the wealth management,
investment partners and securities
services businesses.
Cardif Pinnacle, which is also
part of Investment Solutions, will
remain in Borehamwood in
Hertfordshire.
Ludovic de Montille, UK chairman
of BNP Paribas, said: This long-term
real estate strategy has been
formulated to serve our needs in
London and focusing our operations
on these two campuses will allow
for future growth, further improve
our ability to service clients,
promote cross-selling and reduce
costs.
BNP Paribas
shakes up
London sites
BY PETER EDWARDS
BY JAMES WATERSON
BRITISH markets operator Plus
Markets, the junior stock exchange
that is home to Arsenal football club,
says it has received a number of
indicative proposals since it put
itself up for sale earlier this year.
In a short statement the firm said
that the sale process, announced on
3 February, was progressing.
Interested parties have been provid-
ed with access to management and a
detailed data room.
Potential bidders had
until 30 March to regis-
ter their interest and
the company hopes to
make a further
announcement within
the next few weeks.
The firms thinly-trad-
ed shares closed yes-
terday up 9.7 per
cent at 1.07p
but remained
Exchange firm
Plus Markets
considers bids
well down on a pre-financial crisis
high of over 30p.
Plus was formed in 2005 as a rival to
AIM but has struggled ever since. It
reported a loss of 5.8m on revenue
of 3m in 2010, its sixth consecutive
loss-making year.
When the sale was announced the
company said: The board believes
that it is in the best interests of the
company to seek a partner which will
help it achieve the scale and reach
required to maximise value to stake-
holders.
Plus put itself up for sale earlier this
year after concluding it needed more
financial backing to deal with issues
thrown up by forthcoming regulato-
ry and technological changes.
It grew out of Ofex, an exchange for
British small cap stocks that required
less regulation than the London
Stock Exchange or AIM.
Car sales slump in Europe but
Britain enjoys a revival in March
EUROPEAN car sales fell for a
sixth straight month in March,
industry data showed yesterday,
as the deepening slump in
France and Italy outweighed a
fragile recovery in Germany and
Britain.
Registrations dropped 6.6 per
cent to 1.5m cars across the EU
plus Switzerland, Norway and
Iceland their lowest March
level since 1998, the Association
of European Automakers (ACEA)
revealed.
BY HARRY BANKS
The year-on-year slide
accelerated in much of southern
Europe compared with the
previous month to 27 per cent in
Italy, 23 per cent in France and
4.5 per cent in Spain.
Punished by the Mediterranean
slump, deliveries by Italys Fiat
plunged 26 per cent to 81,469
cars, followed by French
carmakers Renault and PSA
Peugeot Citroen, with declines
close to 20 per cent.
The mass market is so much
more exposed to weaker southern
European countries, whereas
luxury is proving more resilient,
said Barclays Capitals Kristina
Church.
General Motors European sales
fell 10 per cent, Fords 7.6 per
cent and Toyotas 2.1 per cent.
However, the German and
British car markets turned
positive last month, with
respective gains of 3.4 per cent
and 1.8 per cent. The upturn
helped Germanys Volkswagen,
Europes biggest carmaker, to
buck the overall market
contraction with a 1.7 per cent
advance to 352,455 cars.
THE DEVELOPERS of a new hotel near Aldgate have won planning permission for their 23-
storey project, having failed to get the go-ahead in 2009. Planning consultant Barton
Willmore and David Miller Architects, which are developing the hotel on behalf of Pinehill
Capital, said the 251-bedroom hotel will have more public space under the revised plans.
No construction firms have yet been appointed to work on the Leman Street site.
ALDGATE HOTEL GETS THE GO-AHEAD
Plus Markets chief
executive Cyril Theret
14
NEWS
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The coalition government has been
hit by sustained criticism since it
delivered its Budget last month.
New taxes on conservatories and
pasties were pasted, as were plans
to cap the tax relief on charity
donations and losses.
VOICE OF THE CITY
PoliticsHome.com PoliticsHome.com In association with
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Montagu goes back to school
with a deal for College of Law
FRENCH food group Danone has
kept its full year goals intact despite
a worsening economic climate in
austerity-hit southern Europe, saying
it banked on strong demand from
emerging markets to underpin its
growth.
The worlds largest yoghurt maker,
with brands including Actimel and
Activia, also said first-quarter sales
beat expectations after its lagging
dairy division showed signs of
turning the corner in the key US and
Russian markets.
Its a good start to the year. We
are staying cautious but we are
optimistic, finance chief Pierre
Andre Terisse said.
Like-for-like sales grew 6.9 per cent
in the quarter, beating analysts
forecasts for 5.8 per cent growth,
driven by strong demand for baby
food, medical nutrition mostly
liquids administered to hospital
patients and water in emerging
markets. Total sales, which include
the effects of foreign exchange
fluctuations, reached 5.117bn
(4.21bn), a reported rise of 7.6 per
cent. Danone confirmed its target of
five to seven per cent like-for-like
sales growth for 2012 and a flat
operating margin.
Danone keeps
full-year goals
as sales rise
BY HARRY BANKS
R
E
X
LEASING activity in the City and
West office market remained slug-
gish in the first quarter of 2012 as
tough economic conditions contin-
ued to dampen appetite for new
space, according to research by
Knight Frank.
The property agent said take-up in
the West End stood at 1m square feet
in the quarter, down from 1.3m sq ft
in fourth quarter of last year. Prime
rent was flat at 92.50 per sq ft.
In the City, take up also fell to 1m
sq ft from 1.5m sq ft in the latter part
of last year. Prime rent remained at
55 per sq ft.
Despite the low demand for space,
Knight Frank said it was confident
that signs of an improving economy
in the quarter will buoy demand for
office space in London as the year
continues.
It forecast a fall in office supply in
the City and West End this year.
Central London
office take-up
stays sluggish
BY KASMIRA JEFFORD
Tim Robinson, head of West End
leasing, said: A small drop in take-up
was inevitable given the difficult eco-
nomic backdrop, but we are seeing
continued strong demand emerging
from the technology sector, with
household names like Wonga, Money
Supermarket and TomTom all active.
Robinson pointed out that while
supply increased, it is still very low by
historic standards with the vacancy
rate at less than six per cent, com-
pared to a long-run average of eight
per cent.
The constrained development
pipeline will keep supply levels in
check going forward, he said.
William Beardmore-Gray, head of
City leasing, remained upbeat in his
outlook for the City office market.
A number of insurance and law
firms have large office searches in the
City, with deals expected to go under
offer in the coming months.
Consequently, we expect demand to
recover as the year progresses, steadi-
ly pushing down supply, he said.
EMILY Ashwell, a director at
Hawkpoint Partners, was part of
the team who advised the College
of Law on the sale of its legal
education and training business
to Montagu Private Equity.
Although focusing on the field
of media and entertainment, she
has worked on a number of sales
involving education and training
firms since joining Hawkpoint in
2005. She worked on the sale of
vocational education firm TQ
Holdings to Pearson in October
last year, and the sale of
construction and healthcare
training company Melorio, which
was also bought by Pearson, in
2010.
Before joining Hawkpoint
owned by mid-cap broker Collins
Stewart she spent five years at
SP Mergers focusing on mergers
and acquisitions.
Magic circle law firm Allen &
Overy provided legal advice to
the governors of the College of
Law.
Hawkpoint previously advised
BPP, a major rival to the College
of Law, on its sale to private
equity group Apollo Global
nearly three years ago.
By Jessica Abrahams
ADVISERS HAWKPOINT PARTERS
EMILY ASHWELL
HAWKPOINT PARTNERS
PRIVATE equity house Montagu has
taken over a legal college with the
power to award degrees.
It bought the College of Law,
which had been run as a charity and
is one of just five private higher
education providers, after agreeing
a deal with the governors.
Both sides refused to put a value
on the deal although the proceeds
will go towards establishing a
200m-plus fund, set up in
BY PETER EDWARDS perpetuity to ensure diversity in
legal education, which will be
known as the Legal Education
Foundation. Montagu is putting 2m
into a scholarship fund.
Prof David Yates, chairman of the
colleges governors, said Montagu
would be an excellent guardian of
the college, although lecturers
group the University and College
Union immediately called on the
government to act urgently to
protect UK universities from private
equity.
Montagu, which also owns hair
products firm GHD and waste
services firm Biffa, is thought likely
to grow the College of Law into
continental Europe. It currently has
eight sites, including two in London.
It has appointed Sir Tim Wilson,
the former vice-chancellor of the
University of Hertfordshire, as a non-
executive director of the new board
of the college.
The deal marks a rare private
equity foray into higher education,
although BPP is owned by Apollo.
A SLOWER rise in the value of its real estate saw Grosvenors profits tumble by around
20 per cent last year, it revealed yesterday. The company, owned by the Duke of
Westminster, reported pre-tax profit of 315m in 2011, down from 394.8m in 2010.
REAL ESTATE PRICES HIT GROSVENOR PROFITS
16
NEWS
cityam.com
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Introducing
total pay almost doubled last
year as he shifted from chief
executive to chairman.
It jumped from 979,000 to
1.83m as he received 1.4m for
loss of office. The annual
report showed that Gammell is
paid 230,000 a year in his role
as chairman.
New chief executive Simon
Thomson is on a salary of
494,000, up from 375,000 in
his previous role as
commercial director.
Gammell, who founded Cairn
in 1992, was in line for the
payout because of his role in
negotiating the sale of Cairn
India to Vedanta for
3.3bn last year.
The report added:
Meetings with
shareholders will
be held in April
2012 to close out
this matter and to
discuss the
remuneration
report.
Despite the
payout being
knocked back, his
OIL explorer Afren said yesterday it
had made a significant oil
discovery in Kurdistan, adding to a
string of discoveries that have
attracted foreign oil companies to
the semi-autonomous region of Iraq
in recent years.
The FTSE 250-listed company said
the find, made with its partner
Hunt Oil, is in the Ain Sifni
exploration block.
It said data suggested the results
of the Simrit-2 well had the
potential to be transformational for
Afren.
The companys shares jumped by
more than six per cent after the
announcement to close at 143p.
Afren previously said that Ain
Sifni had prospective resources of
917m barrels.
Kurdistan remains locked in a
dispute over oil revenue sharing
with Baghdad, which says the
contracts signed by the Kurdish
government are illegal. This has
blocked exports of crude from the
region, weighing on the value of
assets there.
Afren buoyed
by Kurdistan
oil discovery
BY JOHN DUNNE
G
E
T
T
Y
THE GOVERNMENT yesterday indicat-
ed that shale gas drilling would
resume onshore in the UK after a
temporary ban on the controversial
extraction technique known as frack-
ing.
The ban came after Cuadrilla
Resources admitted that its shale
exploration caused tremors in
Blackpool last year.
Protesters have also claimed the
process contaminates drinking water.
However, Britain has large reserves
of shale gas in areas including the
Pennines a supply that could offer
an alternative to other fossil fuels and
be worth billions of pounds, accord-
ing to industry experts.
Cuadrilla will be permitted to
resume fracking but will be forced to
report any tremors even if they can
Fracking given
green light in
spite of quakes
BY JOHN DUNNE
only be felt underground, under rec-
ommendations made by a govern-
ment appointed panel of experts.
The recommendation will now go
out to six-week consultation.
Meanwhile the panel said that the
UK had rich shale gas resources off-
shore to put it among the top ranks of
global producers.
Nigel Smith, subsurface geologist
and geophysicist at the British
Geological Survey said: We were pio-
neers in the North Sea with conven-
tional oil and gas and the technology
has gone around the world, so why not
become one in the unconventional
[shale] sector.
In the US almost a quarter of the
countrys natural gas extraction is
shale and the energy sector has seen a
string of deals for shale gas operations
across the globe.
Cairn kills Gammells 2.5m
bonus after investor revolt
CAIRN Energy yesterday
confirmed that its founder and
former chief executive will not
be paid a 2.5m bonus after
shareholders staged a revolt.
The companys 2011 annual
report said that the company
had decided not to pursue the
proposed award.
The Edinburgh-based oil
company saw the plan under
which 1m would be paid to
charities that Gammell
supports torpedoed at a
shareholders meeting in
January.
BY JOHN DUNNE
Cuadrilla is allowed to resume shale gas fracking in Blackpool
Sir Bill Gammell founded
the oil explorer in 1992
THE FORUM: Page 24

18
NEWS
cityam.com
Q
What is fracking?
A
Fracking is pumping pressurised
water and chemicals
underground to open shale rocks
and release trapped gas in
otherwise inaccessible areas.
Q
Why is it called fracking?
A
It is a shorted version of
hydraulic fracturing or splitting
rocks using pressurised fluids to
push out the fuel held within.
Q
Why is it so
controversial?
A
Last year, fracking was halted in
Blackpool after earth tremors
were detected. There are also
ongoing investigations into whether
the process sends potentially
dangerous chemicals into the water
supply.
Q
What are the benefits of shale gas?
A
It provides useful new supplies at
a time of uncertainty over the
worlds future energy needs.
Q
A
and
What is the deal with fracking?
committed to a massive expansion
of its iron ore operations in the
Pilbara in Western Australia, where
it expects to be producing at 283m
tonnes a year in the second half of
2013. The company said its coal
mines were in new South Wales had
been hit by rain.
weaker than we would have
thought, said UBS analyst
Glyn Lawcock.
Rival BHP Billiton is also
expected to report weather-
related disruptions to its
Australian iron ore operations.
Rio Tinto gave no detailed
commentary on demand, but
there have been market
concerns that commodity
imports by China will drop off
this year in step with slowing
industrial growth.
Global stock markets fell last
month when BHP said it was
seeing signs of flattening
Chinese demand for iron ore.
China is the single-largest
buyer of Australian iron ore,
and Rio Tinto remains
Rio Tinto blow as copper and
iron production disappoints
RIO Tinto yesterday reported
worse-than-expected falls in iron
ore, copper and coal production
in the first quarter after it was hit
by bad weather.
The worlds second biggest
producer of iron ore said output
dropped 11 per cent in the March
quarter from the previous three
months, with cyclones
hampering production and
shipments in the southern
hemisphere summer.
The miners outlook for copper
production for the full year also
came in weaker than expected.
We were expecting it to be
weak, but suffice to say in
summary, its come through
BY HARRY BANKS
Rio Tinto PLC
3,350
3,400
3,450
3,500
3,550
p
3,517.50
17Apr
IN BRIEF
Michael Page to boost exec pay
nThe chief executive of recruiter
Michael Page will see his base salary
rise by 15 per cent for 2012, after
receiving a more modest increase of
three per cent for the 2011 financial
year. The companys annual report
showed Steve Inghams basic salary
rose to 392,000 last year, with
additional bonuses and benefits
boosting his total pay pot to 1.47m.
The report said next years rise was
to recognise recent changes to the
Michael Page board that have
changed the chief executives
responsibilities.
Eurostar enjoys a traffic jump
nChannel tunnel train service
Eurostar yesterday reported a seven
per cent jump in sales for the first
three months of the year, with
passenger numbers up four per cent
on a year ago to 2.24m. The firm said
business travel had remained flat
during the year but a boom in
holidaymakers on its new routes
through to Amsterdam and Brussels
had lifted its figures.
Tube Lines staff will go on strike
nMaintenance staff working for
Tube Lines will stage a 72 hour strike
starting at 4pm next Tuesday in a
dispute over pay, benefits and
pensions parity with other workers
on the London Underground.
Employees at the Stratford Market
depot and the Emergency Response
Unit will walk out after they voted
four-to-one in favour of strike action,
the RMT union confirmed yesterday.
G
E
T
T
Y
VOLKWAGENS Audi unit has
agreed to buy thoroughbred Italian
motorcycle maker Ducati for about
860m (708.5m) including debt,
two people familiar with the mat-
ter said yesterday.
The deal allows VW chairman
Ferdinand Piech, who has long cov-
eted Ducati and himself owns one
of their superbikes, to make up for
a missed opportunity nearly 30
years ago to buy the maker of the
fire-engine red 1199 Panigale,
which boasts the most powerful
twin-cylinder production engine on
the planet.
One source said Ducatis debt was
well below 200m in an acquisition
analysts said lacked obvious bene-
fits for premium carmaker Audi
and did little but polish Piechs rep-
utation as a collector of rare and
exotic brands.
The Ducati purchase is driven by
VWs passion for nameplates rather
than industrial or financial logic,
said Arndt Ellinghorst, an analyst
at Credit Suisse.
VW boss fulfils
30-year dream
of Ducati deal
BY HARRY BANKS
Ducati, which has won 13 riders
Superbike World Championships
since 1988, will increase the VW
groups brand portfolio to 12 and
extend Audis long-standing rivalry
with BMW to superbikes. It was
Piech who piloted VWs expansion
to an 11-brand entity covering fuel-
efficient city cars to 40-tonne
trucks.
Outgoing owner Investindustrial
last listed Ducatis earnings before
interest, tax, depreciation and
amortisation (Ebitda) at 71m for
2010, on revenue just above 390m
a drop in the bucket for Germanys
most profitable manufacturer.
Volkswagen AG
126
128
130
132
134
133.10
17Apr
19
NEWS
cityam.com
Ducati has won 13 riders Superbike World Championships since 1998
SPAIN sold more bonds than
expected yesterday as investors
flocked to benefit from the high
yields being offered on the debt.
Germany provided more upbeat
news with a positive economic
sentiment index, and the Bank of
Italy published a report showing a
healthy outlook for the
governments finances.
The Spanish government sold
3.2bn (2.64bn) of 12- and 18-month
bills, above the 3.0bn initially
planned
However, the yield of 2.623 per
cent on the one-year debt was up
sharply from 1.418 per cent at the
last similar sale which took place
just a month ago.
Germany continued its solid
expansion with the ZEW index of
economic sentiment rising to a two-
year high of 23.4, up from 22.3 in
March.
ZEW economist Michael Schroeder
claimed the risks of a recession have
receded, putting a 15 per cent
probability of a recession in
Germany in the next two quarters,
down from 30 per cent in late 2011.
However, other analysts were less
convinced the economy has such
momentum.
It is unclear this optimism can be
maintained given the nature of the
Eurozones fiscal problems, warned
Capital Economics.
High demand
for Spanish
debt auction
BY TIM WALLACE
G
E
T
T
Y
SOARING food and clothes prices
pushed inflation up in March, official
data showed yesterday, reversing the
recent downward trend and raising
fears that consumers will be squeezed
for even longer than expected.
Consumer prices rose 3.5 per cent in
the year to March, up from 3.4 per
cent in February and defying predic-
tions of rapidly falling inflation.
Food price inflation accelerated,
jumping from 3.3 per cent in the year
to February to 4.6 per cent in the year
to March, while clothing inflation
also rose sharply, up from 2.6 per cent
to 3.7 per cent.
The cost of living rose 3.6 per cent,
down from 3.7 per cent in February,
while core inflation which strips out
volatile food, energy, tobacco and
alcohol prices rose once more to 2.5
per cent from 2.4 per cent.
The shock is not just coming from
the usual suspects of food and ener-
gy it is possible that underlying
inflationary pressures are a little bit
stronger than many were thinking
they would be a few months ago,
Surprise jump
in inflation as
food prices rise
BY TIM WALLACE
warned BNP Paribas David Tinsley.
There remain risks from food prices
given the drought affecting the UK
and parts of Europe, as well as the
opportunity retailers may get to push
up prices over the busy period of the
Olympics.
That outlook could embarrass the
Bank of England it had justified
increasing its quantitative easing pro-
gramme last year by forecasting a
sharp fall in inflation into 2012.
Inflation was last below the two per
cent target in November 2009.
Meanwhile Eurostat revised up its
March inflation reading for the
Eurozone to 2.7 per cent.
GOVERNMENTS that manipulate
official statistics to falsely give a
positive impression of their
success could be punished under
rules proposed yesterday by the
European Commission.
At the same time European
Central Bank boss Mario Draghi
called for improved financial
sector statistics, arguing that
better data is needed if the
authorities are to properly
promote stability in the industry.
He told a conference in
Frankfurt it is vital to collect data
consolidated at the level of
banking groups or insurance
BY TIM WALLACE
groups to fully understand the
various kinds of risk to which
banks are exposed and the
adequacy of their capital in view
of these risks.
Meanwhile the Commission said
national statistics chiefs should be
entirely autonomous in their
work, and said it wants to punish
governments who fail to safeguard
the independence of state data
providers, or make politically-
motivated appointments.
Greece infamously fiddled its
deficit figures for years, allowing
it to join the euro under false
pretences and build up the
enormous debts that left it
needing two bailouts.
20
NEWS
cityam.com
ECB boss Mario Draghi called for better and more uniform financial data
Statistics frauds to be punished
under new EU data proposals
Consumer prices accelerated in March
Mar 2010 Mar 2011 Mar 2012
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Bank of EnglandTarget
RPI
MORE cross-border government
spending would help solve the
Eurozone crisis, the Bank of Englands
Adam Posen said yesterday, blaming
Germanys reluctance to bail out
other members for the chaos on bond
markets.
The Monetary Policy Committee
(MPC) member said EU authorities
should be thinking much more radi-
cally about fiscal union.
Posen suggested establishing a
counter-cyclical tax on real estate,
creating a large fund during housing
booms which can then be spent when
those bubbles burst.
He believes such a policy may be par-
ticularly favoured by Germany, which
did not experience a housing bubble,
as it would have made countries such
as Ireland pay more before the crisis.
Raising cross-border unemployment
Banks Posen calls for
fiscal union in Europe
BY TIM WALLACE
benefit payments would also be a step
in the right direction, he said.
As the authorities are currently
expanding their oversight of strug-
gling governments, Posen argued they
might as well take additional major
steps towards fiscal union.
The American economist rejected
claims that the US is a more stable
economy because of labour market
flexibility rather than fiscal transfers,
saying this is simply a misconception
about the scale of both factors.
He said Germany is to blame for the
trend towards high borrowing costs in
peripheral Eurozone countries,
arguing that investors do not
believe Germany will step in
to help weaker governments
after they have implement-
ed the promised econom-
ic reforms.
IN BRIEF
Japanese confidence jumps
n The mood of Japanese
consumers improved to a one-year
high last month, according to a
cabinet office survey published
yesterday. Consumer confidence
was boosted by hopes for support
from post-quake reconstruction,
following last years devastating
natural disaster. The surveys index
showed that views on income and
jobs averaged 40.3 in March, up
from 39.9 in the previous month
and the highest level since
February 2011, when the index was
41.2. However, the reading is still
well below the benchmark of 50,
which is needed to suggest
consumer optimism.
India cuts its interest rates
n Indias central bank cut the
interest rate for the first time in
three years yesterday in an attempt
to boost its sagging economy. The
Reserve Bank of India cut rates by
50 basis points, double the
expected 25 basis point cut and
leaving its main interest rate at
eight per cent. The news was well-
received, with bond yields falling
sharply. However, the Bank warned
there would be little room for
further cuts in future, as inflation is
expected to remain high and
growth is on track to pick up, albeit
modestly though analysts
suggested any fall in commodity
prices could change that view.
JAPANESE finance minister Jun
Azumi yesterday announced that
Japan would provide $60bn (37bn)
in loans to the International
Monetary Fund (IMF) amid renewed
concerns about Europes debt woes,
a move that it hopes will encourage
other countries to contribute.
Finance ministers from the G20
group of major economies will meet
this week in Washington to discuss
a plan to raise new resources for the
IMF to contain the Eurozones
sovereign debt crisis.
I am confident that many other
countries will pledge contributions
to the IMF, Azumi told a news
conference after a cabinet meeting.
Japan pledges extra $60bn in
new bailout loans to the IMF
BY HARRY BANKS
21
NEWS
cityam.com
NEW JOBS
NEW COMPANIES
EVERYDAY
CITYAMCAREERS.com
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OVER
OR SCAN HERE
2500
FINANCE, LEGAL & I.T
SALARIES UP TO
JOBS
300K
SAVING money is more of a
priority than splashing the cash
ahead of retirement, according to
research from Prudential,
published today.
Six out of 10 Brits due to retire
this year said that saving money to
ensure they had enough to live on
would be one of their top
priorities, compared to four in 10
who put spending money on
enjoyment near the top of their
list.
Just one in five said leaving an
inheritance was a major priority.
OAP planners
boost savings
BY JESSICA ABRAHAMS
The MPCs Adam Posen
that we have not continued to
head in the right direction.
The drop in the score is down to
a fall in all of the measures that go
into it (household activity, job
security, house price perception
and business activity) but looking
behind those scores, the real driver
can be seen elsewhere.
These economic confidence
numbers are the first that we have
seen since the Budget, and our
question on confidence in the
governments handling of the
economy has dropped from 68 to
55, the lowest score under the
coalition.
This backs up findings we see in
our political polling that the
Budget was poorly perceived,
confidence in the government is
falling and Labour is opening up a
big lead in voting intention (11
points in YouGovs daily poll
yesterday).
The political aspect will be
disturbing enough for the
government, but if it is also
affecting the fragile state of
economic confidence they could be
in a dangerous vicious circle, with
consumers lack of confidence in
the government harming their
willingness to spend, thereby
stalling the economic recovery.
This could, in turn, inevitably
lead to further falls in perceptions
of how our leaders are handling it.
There is hope for Osborne and
co: although confidence has fallen,
it is still higher than it had been
for some time prior to March. The
concern is the impact that
government policy has had on it.
The chancellor will need those
policies to work and work quickly
or there could be trouble ahead.
Stephan Shakespeare is the chief executive
of YouGov
BRAND
INDEX
STEPHAN SHAKESPEARE
Condence chart
May2010 May2011 May2012
20
40
60
80
100
120
HEATIndex
Condenceingovt
economichandling
The chancellor needs his economic policies to start working fast
T
HE first three months of 2012
saw economic confidence
among UK consumers grow,
and last month we saw the
YouGov HEAT (Household
Economic Activity Tracker) at its
highest level since June 2010.
In March the index was up 10
points compared to December
was positive momentum building?
Today sees the release of the
interim numbers for April, and Im
afraid that any positive
momentum has stalled. The HEAT
Index score dropped from 98 out of
200 in March to 94 now. This is still
higher than any other month since
June 2010, but it is disappointing
WOMEN in the workforce have
strongly outperformed men
through the financial crisis,
according to analysis published
today by a leading employment
body.
There are now 387,000 fewer
men in work than there were at
the start of the recession,
according to the Chartered
Institute of Personnel and
Development (CIPD), compared
with a decline of just 8,000
women.
From the first quarter of 2008,
the gap between the male and
female unemployment rates has
climbed from 0.8 percentage
points to 1.3 as the male jobless
rate increased.
The 50-64 year old age group
has seen the biggest changes for
female workers an additional
271,000 entered the labour
market, and an extra 200,000
more are now in work, compared
with a rise in male employment
in the age bracket of just 3,000.
With the modern generation
of 50-something women more
likely to view Madonna than
Grandma Grey as a role model,
the economically active older
woman is well on course to be
ever more prominent in British
workplaces in the coming years,
said CIPD boss John Philpott.
More women in jobs as men lose out
BY TIM WALLACE
22
LONDONREPORT
Symvan Securities
The corporate finance house has
announced that Shamim Mansoor
has joined as a mining analyst.
Mansoor arrives from HSBC,
where she served as vice-
president global metals and
mining. She previously worked
for five years at Investec.
CapQuest
CapQuest, specialists in the purchase, management and
collection of consumer debt, has appointed Bill Flynn as
group general counsel. Flynn joins from GE Capital, where
he was general counsel, GE Money Home Lending, and
subsequently chief compliance officer, EMEA.
Hearthstone Investments
The residential property fund manager has appointed
Darren Stent as business development manager. His
appointment follows Mike Kirsch joining the firm as non-
executive director earlier this month. Stent joins from The
Mansion Group, a student accommodation investment firm.
Eden Financial
Eden, the asset management firm, has hired two senior
figures into its wealth management division. Paul Mann and
Jonathan Galloway both join from Bank Hapoalim
International as investment directors. In their previous
roles, Mann was head of private banking and Galloway was
head of the UK desk.
Cordea Savills
The property investment management firm has appointed
John Claxon as a director of investment in its UK segregated
mandate business. He will report to executive director and
head of investment, UK, George Tindley. Claxon joins from
BNP Paribas Real Estate Investment Management, where he
was head of the UK investment management division.
Pioneer Investments
Pioneer, a global investment management group, has hired
five new investment professionals for its London emerging
markets hub. The new team includes Sebastian Taylor, Ji
Young Park, Richard Clode, Caroline Galligan and Garrett
Walsh.
Russell-Cooke
The London law firm has announced the addition of Alex
Ground as a new planning solicitor in its commercial
property team. Ground joins from Herbert Smith, where he
most recently held the position of senior associate planner.
Bfinance
The independent consultancy has appointed Douglas
Hansen-Luke as chief executive of MEA and central Asia. He
joins from Robeco Middle East, where he was chief
executive. He has previously worked for ABN AMRO, Bain
and Company, and Salomon Brothers.
WHOS SWITCHING JOBS Edited by Tom Welsh
+44 (0)20 7092 0053
morganmckinley.com
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
Biggest gains
in a month on
strong profits
U
S stocks scored their biggest
gains in a month yesterday
after Coca-Cola led a round of
strong earnings and as
concerns about Europes debt crisis
eased as Spanish bond yields fell.
Apple shares ended a five-day los-
ing streak with a rally of 5.1 per cent,
helping the Nasdaq Composite close
above 3,000.
The stock closed at $609.70 and
booked its best day in almost three
months after it dropped 8.8 per cent
in the previous five sessions.
IBM, Intel and Yahoo all beat earn-
ings estimates in their reports after
the closing bell.
Earlier in the day, Coca-Cola,
Goldman Sachs and Johnson &
Johnson all reported profits that beat
analysts estimates, in what has been
a surprisingly strong start to earn-
ings season.
People were very pessimistic,
marking down earnings expectations
so there was plenty of room for the
market to be positively surprised,
said Paul Zemsky, the New York-based
head of asset allocation at ING
Investment Management.
The stocks of companies whose
results exceeded forecasts did not all
rise. But the better-than-expected
results helped ease fears that earn-
ings could start to tail off this quar-
ter. Of the 39 S&P 500 companies that
had reported earnings before yester-
days opening bell, 74.4 per cent beat
estimates, according to Thomson
Reuters data.
German analyst and investor confi-
dence rose unexpectedly in April to a
high not seen since June 2010 while
better-than-expected results from
Spanish debt sales boosted confi-
dence before a long-term debt auc-
tion later in the week.
INGs Zemsky said it was hard for
any market to dismiss the significant-
ly stronger-than-expected German
survey.
The benchmark Spanish 10-year
note's yield slipped below six per
cent, but worries about Madrids
finances and the banking sector are
likely to keep the pressure on in com-
ing days.
The Dow Jones industrial average
rose 194.13 points, or 1.50 per cent, to
close at 13,115.54. The S&P 500 Index
gained 21.21 points, or 1.55 per cent,
to 1,390.78. The Nasdaq Composite
climbed 54.42 points, or 1.82 per
cent, to 3,042.82.
In yesterdays rally, each of the
three major indexes booked their
largest percentage gains since 13
March.
The S&P 500 closed just shy of its 14-
day moving average and easily
cleared its 50-day average, suggesting
a turn in momentum after the recent
pullback. The benchmark dipped
below the 50-day line last week for
the first time in more than three
months.
International Business Machines
reported a 15 per cent increase in
first-quarter earnings after the bell
and raised its full-year outlook.
B
RITAINS top share index gained
nearly two per cent yesterday, led
by a rebound in banking stocks
after a well-covered Spanish bill
auction eased some concerns about
banks exposure to Eurozone debt.
Barclays was the top sector performer,
rallying 4.6 per cent after BofA Merrill
Lynch said earnings upgrades could be
on the horizon for the UK lender.
With Eurozone fears hitting the shares
recently, we think the quarter one results
could re-focus investors to the fundamen-
tal attractions of Barclays, BofA ML said
in a note.
The FTSE 100 index closed up 100.67
points, or 1.8 per cent at 5,766.95, just
below the level it started April after a
roller-coaster ride so far this month.
Having pushed back to the levels seen
at the beginning of April, the question is
now whether markets can regain lost
ground, or whether the Eurozone crisis is
strong enough to drag us back down-
ward, said Yusuf Heusen, sales trader at
IG Index.
Banks drew support from a slight eas-
ing in concerns over the Eurozone debt
situation after an auction of Spanish 12
and 18-month bills saw strong demand,
although yields rose and tomorrows
more important 10-year Spanish debt
auction was more keenly awaited.
Fairly upbeat comments from the
International Monetary Fund (IMF), in its
latest World Economic Outlook, also pro-
vided a lift for equities.
Global growth is slowly improving as
recovery in the US gains traction, but
risks remain elevated, the IMF said.
Certainly, with the IMF sounding
more positive on the outlook for the glob-
al economy, the bulls seem to have the
upper hand once again, even if investors
arent exactly rushing from their safe
havens just yet, said IGs Heusen.
Strategists at Nomura maintained a
bullish outlook for European equities in
their latest review.
An interesting feature of the past
month has been the sharply increased
willingness of investors to discriminate-
between European countries and stocks,
they said in a note.
This should be encouraging for active
managers as it provides the ability to add
value, as opposed to the highly correlated
moves of last year, the strategists added.
Market heavyweight Vodafone added
nearly five points to the blue chip index,
with the stock gaining 1.5 per cent as the
mobile telecoms operator said it had
served the Indian government with a
notice of dispute regarding Indias pro-
posal to retrospectively tax overseas
transactions.
Heavyweight commodity issues were
also higher, with integrated oils support-
ed by a firmer crude price , while a tick-
up in copper prices helped miners
recover from early falls.
Precious metal miner Randgold
Resources, however, fell 1.1 per cent as
the gold price edged lower.
Burberry Group was the top FTSE 100
loser, tumbling 5.9 per cent on profit tak-
ing after the luxury goods firm met fore-
casts with an 18 per cent rise in second
half sales. Merchant Securities cut its rat-
ing for Burberry to hold from buy on
valuation grounds.
Retailer Marks & Spencer was also
weak after a trading update, falling 2.5
per cent as underlying fourth-quarter
sales missed forecasts, with growth in
food sales failing to offset a weaker out-
come in general merchandise.
UK consumer price inflation inched up
to 3.5 per cent in March from 3.4 per cent
in February, as expected, driven by rises
in food and clothing prices.
Bouncing back banking shares see
FTSE jump by nearly two per cent
BESTof theBROKERS
FTSE
5,750
5,725
5,700
5,675
5,650
5,625
5,600
5,775
p
5,766.95
17Apr
DASHBOARD CITY
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BROKER VIEWS AND MARKET REPORTS
cityam.com
Hikma Pharmaceuticals PLC
12 Apr 13 Apr 16 Apr 11 Apr 17Apr
660
655
650
665
p
670
675
659.00
17 Apr
HIKMA
UBS has upgraded the pharma group from neutral to buy with a target
price of 755p, saying that a recent fall in the share price seems to already
reflect expected changes to 2012-13 consensus. The broker still sees
downside risk of 10 per cent and six per cent for 2012/13 respectively, but
sees the 15 per cent fall in share price since the 2011 full-year results as an
attractive entry point. UBS also said further acquisitions particularly in
Egypt would be well received by investors.
Logica PLC
12Apr 13Apr 16Apr 11 Apr 17Apr
82
81
80
79
83
p
84
85
82.05
17 Apr
LOGICA
Investec has upgraded the IT group from sell to hold with a target
price of 84p, citing better sentiment towards the companys near and
longer term profit prospects for the change. Though the broker remains
concerned about raised expectations of a margin snap back in 2012-13, it
says that to recommend a sell rating at the current valuation would imply it
expected a near-term warning. Investec expects the first quarter update to
be uninspiring, but not catastrophic.
Informa PLC
12Apr 13Apr 16Apr 11 Apr 17Apr
430.00
427.50
425.00
432.50
p
435.00
437.50
440.00
437.50
17 Apr
INFORMA
Citi continues to flag the media and publishing company as its top pick for
the year as well as one of its most preferred stock on a three-month view.
It rates the company as a buy with a target price of 530p raised from
505p due to scope for Informa to trade at a premium to its closest peers.
The broker says the perception of Informa as a poor allocator of capital is
worse than reality, and thinks that the asset mix and balance sheet
strength could lead to a re-rating of the stock versus rival UBM.
23
MARKETS
cityam.com
LON GD ONCE FIX AM..................................1652.00 3.75
SILVERLDN FIX AM..........................................31.38 -0.30
MAPLE LEAF 1 OZ ............................................34.23 0.25
LON PLATINUM AM......................................1572.00 1.00
LON PALLADIUM AM.....................................653.00 10.00
ALUMINIUM CASH......................................2026.00 -19.50
COPPER CASH.............................................8053.50 -111.50
LEAD CASH.................................................2033.00 -39.00
NICKEL CASH............................................17940.00 -455.00
TIN CASH..................................................21600.00 -1025.00
ZINC CASH ..................................................1989.50 -22.50
BRENT SPOT INDEX ........................................121.77 1.21
SOYA...........................................................1420.00 -16.75
COCOA........................................................2300.00 52.00
COFFEE ..........................................................174.70 -4.50
KRUG...........................................................1710.00 -8.10
WHEAT ..........................................................176.47 -0.03
AIR LIQUIDE......................................................99.47 0.99 102.30 80.90
ALLIANZ............................................................84.76 2.76 107.45 56.16
ANHEUS-BUSCHINBEV .....................................55.31 0.31 55.75 33.85
ARCELORMITTAL .................................................13.71 0.57 25.40 10.47
AXA....................................................................11.07 0.37 15.94 7.88
BANCO SANTANDER............................................5.01 0.18 7.96 4.74
BASF SE ............................................................65.57 2.71 70.22 42.19
BAYER...............................................................52.85 1.91 59.44 35.36
BBVA ..................................................................5.35 0.19 8.44 4.84
BMW................................................................70.00 1.29 73.95 43.49
BNP PARIBAS...................................................30.99 1.99 55.20 22.72
CARREFOUR........................................................16.11 0.70 28.19 14.66
CRH PLC.............................................................15.37 0.42 16.93 10.28
DAIMLER...........................................................42.46 1.61 53.95 29.02
DANONE ...........................................................53.08 1.50 53.46 41.92
DEUTSCHE BANK...............................................35.37 1.53 44.56 20.79
DEUTSCHE BOERSE...........................................49.42 1.89 57.68 35.65
DEUTSCHE TELEKOM...........................................8.70 0.15 11.38 7.88
E.ON ..................................................................17.20 0.33 23.54 12.50
ENEL....................................................................2.51 0.07 4.86 2.41
ENI ....................................................................16.83 0.43 18.72 11.83
FRANCE TELECOM..............................................10.40 0.32 15.96 10.06
GDF SUEZ..........................................................19.06 0.58 28.00 17.65
GENERALI ASS...................................................10.70 0.40 16.38 10.07
IBERDROLA ........................................................3.90 0.11 5.94 3.75
INDITEX .............................................................71.35 1.61 74.73 52.20
ING GROEP CVA...................................................5.61 0.33 9.07 4.21
INTESA SANPAOLO ..............................................1.25 0.09 2.13 0.85
KON.PHILIPS ELECTR .........................................14.29 0.46 21.68 12.01
L'OREAL ............................................................93.68 0.96 94.80 68.83
LVMH...............................................................130.50 0.20 136.80 94.16
MUNICHRE......................................................114.00 4.85 118.35 77.80
NOKIA ................................................................3.08 0.09 6.36 2.95
REPSOL YPF.......................................................16.42 -1.06 24.45 15.90
RWE..................................................................35.76 0.86 46.51 21.15
SAINT-GOBAIN..................................................32.24 1.95 47.64 26.07
SANOFI .............................................................56.76 1.16 59.56 42.85
SAP..................................................................49.50 0.50 54.85 32.88
SCHNEIDER ELECTRIC ........................................48.41 2.16 60.63 35.00
SIEMENS...........................................................72.94 1.20 99.07 62.13
SOCIETE GENERALE............................................18.57 1.47 46.60 14.32
TELECOM ITALIA..................................................0.83 0.02 1.08 0.70
TELEFONICA .......................................................11.56 0.32 18.34 11.12
TOTAL ................................................................37.47 0.49 43.61 29.40
UNIBAIL-RODAMCO SE.....................................145.45 4.30 162.95 123.30
UNICREDIT..........................................................3.24 0.22 11.57 2.20
UNILEVER CVA ..................................................25.38 0.33 27.16 20.96
VINCI ................................................................36.38 1.47 45.48 28.46
VIVENDI.............................................................12.97 0.33 21.37 12.50
VOLKSWAGEN VORZ.........................................133.10 2.10 152.20 86.40
Price Chg High Low
EU SHARES
WORLD INDICES
FTSE 100 . . . . . . . . . . . . . . . . . . . . . 5766.95 100.67 1.78
FTSE 250 INDEX . . . . . . . . . . . . . . . 11426.29 170.89 1.52
FTSE UK ALL SHARE . . . . . . . . . . . . 2997.65 50.29 1.71
FTSE AIM ALL SH . . . . . . . . . . . . . . . . 777.12 1.14 0.15
DOWJONES INDUS 30 . . . . . . . . . . 13115.54 194.13 1.50
S&P 500 . . . . . . . . . . . . . . . . . . . . . 1390.78 21.21 1.55
NASDAQ COMPOSITE . . . . . . . . . . . 3042.82 54.42 1.82
FTSEUROFIRST 300. . . . . . . . . . . . . . 1053.12 20.69 2.00
NIKKEI 225 . . . . . . . . . . . . . . . . . . . 9464.71 -5.93 -0.06
DAX 30 PERFORMANCE . . . . . . . . . 6801.00 175.81 2.65
CAC 40. . . . . . . . . . . . . . . . . . . . . . . 3292.51 87.23 2.72
SHANGHAI SE INDEX . . . . . . . . . . . 2334.99 -22.04 -0.94
HANG SENG. . . . . . . . . . . . . . . . . . 20562.31 -48.33 -0.23
S&P/ASX 20 INDEX . . . . . . . . . . . . . 2557.90 -6.50 -0.25
ASX ALL ORDINARIES. . . . . . . . . . . 4368.80 -13.70 -0.31
BOVESPA SAO PAOLO . . . . . . . . . . 62698.87 744.32 1.20
ISEQ OVERALL INDEX . . . . . . . . . . . 3222.64 46.55 1.47
STRAITS TIMES . . . . . . . . . . . . . . . . 2986.59 -5.53 -0.18
IGBM . . . . . . . . . . . . . . . . . . . . . . . . . 730.81 5.17 0.71
SWISS MARKET INDEX . . . . . . . . . . 6200.27 75.36 1.23
Price Chg %chg
3M.....................................................................87.45 1.05 98.19 68.63
ABBOTT LABS...................................................60.43 0.58 62.57 46.29
ALCOA................................................................9.99 0.13 17.96 8.45
ALTRIA GROUP...................................................31.61 0.23 31.77 23.20
AMAZON.COM .................................................188.39 2.89 246.71 166.97
AMERICAN EXPRESS..........................................58.18 0.35 59.26 41.30
APPLE............................................................609.70 29.57 644.00 310.50
AT&T.................................................................30.89 0.28 31.97 27.29
BANK OF AMERICA.............................................8.92 0.13 13.33 4.92
BERKSHIRE HATAW B.......................................80.76 1.09 83.72 65.35
BOEING CO .......................................................74.09 1.41 80.65 56.01
CATERPILLAR...................................................108.41 1.67 116.95 67.54
CHEVRON........................................................103.62 2.11 112.28 86.68
CISCO SYSTEMS ................................................20.08 0.36 21.30 13.30
CITIGROUP........................................................35.08 1.08 46.00 21.40
COCA-COLA.......................................................73.95 1.51 74.48 63.34
COMCAST CLASS A............................................30.09 0.33 30.41 19.19
CONOCOPHILLIPS..............................................74.26 0.43 81.50 58.65
DU PONT(EI) DE NMR.......................................53.40 0.68 57.50 37.10
EMC CORP.........................................................29.33 0.52 30.00 19.84
EXXON MOBIL ...................................................85.45 1.44 88.13 63.47
GENERAL ELECTRIC ...........................................19.34 0.44 21.00 14.02
GOOGLE A ......................................................609.57 3.50 670.25 473.02
HEWLETT PACKARD..........................................24.72 0.41 41.74 19.92
HOME DEPOT....................................................52.03 0.34 52.15 28.13
IBM.................................................................207.45 4.73 210.69 157.13
INTEL CORP.......................................................28.47 0.07 28.78 19.16
J.P.MORGAN CHASE..........................................43.90 0.57 46.49 27.85
JOHNSON & JOHNSON.....................................64.22 0.24 68.05 55.76
KRAFT FOODS A................................................38.48 0.90 39.40 24.30
MC DONALD'S CORP ...........................................97.11 0.53 102.22 76.40
MERCK AND CO. NEW........................................38.51 0.56 39.43 29.47
MICROSOFT .......................................................31.44 0.37 32.95 23.65
OCCID. PETROLEUM...........................................88.73 1.47 117.89 66.36
ORACLE CORP...................................................29.28 0.65 36.50 24.72
PEPSICO...........................................................66.40 0.41 71.89 58.50
PFIZER...............................................................22.31 0.33 22.80 16.63
PHILIP MORRIS INTL..........................................87.45 0.41 90.10 60.45
PROCTER AND GAMBLE....................................67.02 0.24 67.95 56.57
QUALCOMM INC.................................................67.23 0.98 68.87 45.98
SCHLUMBERGER...............................................69.35 1.91 95.53 54.79
TRAVELERS CIES...............................................59.99 0.83 64.17 45.97
UNITED TECHNOLOGIE.......................................81.24 1.36 91.83 66.87
UNITEDHEALTH GROUP.....................................58.10 0.74 59.61 41.27
US BANCORP DELAWRE ....................................31.55 0.39 32.23 20.10
VERIZON COMMS...............................................37.74 0.31 40.48 32.28
VISA CL A........................................................122.08 1.25 123.68 73.11
WAL-MART STORES...........................................61.87 1.29 62.63 48.31
WALT DISNEY CO..............................................42.68 1.02 44.50 28.19
WELLS FARGO & CO..........................................33.68 0.53 34.59 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................................0.257 0.00
LIBOR Euro - 12 months................................1.342 0.00
LIBOR USD - overnight.................................0.150 0.00
LIBOR USD - 12 months ................................1.048 0.00
Halifax 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 long bond yield.......................................3.130 0.02
European repo rate ......................................0.157 0.00
Euro Euribor .................................................0.315 0.00
The vix index................................................17.89 -1.66
The baltic dry index.....................................975.0 3.00
Markit iBoxx...............................................242.87 -1.06
Markit iTraxx...............................................143.68 0.95
Price Chg High Low
Price Chg %chg Price Chg %chg Price Chg %chg
US SHARES
BAE Systems . . . . . . . . .303.8 8.6 340.8 248.1
Chemring Group . . . . . .391.4 12.4 677.0 368.8
Cobham . . . . . . . . . . . .238.9 5.5 238.9 165.9
Meggitt . . . . . . . . . . . . . .411.8 7.8 412.3 304.9
QinetiQ Group . . . . . . . .155.4 0.4 159.3 101.5
Rolls-Royce Holdi . . . . .825.5 4.0 842.5 557.5
Senior . . . . . . . . . . . . . .204.8 4.5 206.9 135.6
Ultra Electronics . . . . . .1687.0 4.0 1780.0 1305.0
GKN . . . . . . . . . . . . . . . . .211.5 7.8 245.0 157.0
Barclays . . . . . . . . . . . .220.6 9.8 301.9 138.9
HSBC Holdings . . . . . . . .554.1 12.8 662.5 463.5
Lloyds Banking Gr . . . . . .31.0 1.2 60.4 21.8
Royal Bank of Sco . . . . . .25.2 0.9 42.9 17.3
Standard Chartere . . . .1553.0 54.0 1672.0 1169.5
AG Barr . . . . . . . . . . . . .1145.0 -38.0 1395.0 1031.0
Britvic . . . . . . . . . . . . . .388.6 2.4 444.0 289.9
Diageo . . . . . . . . . . . . .1570.5 27.0 1571.0 1112.0
SABMiller . . . . . . . . . . .2595.0 52.5 2660.0 1979.0
AZ Electronic Mat . . . . .307.7 5.5 338.1 206.1
Croda Internation . . . .2228.0 38.0 2238.0 1597.0
Elementis . . . . . . . . . . .206.0 8.5 210.7 107.5
Johnson Matthey . . . .2400.0 59.0 2408.0 1523.0
Victrex . . . . . . . . . . . . .1495.0 57.0 1590.0 1025.0
Yule Catto & Co . . . . . . .238.2 0.0 253.0 148.0
/$ 1.3125 0.0008
/ 0.8237 0.0024
/ 106.03 0.4103
/ 1.2140 0.0036
/$ 1.5933 0.0037
/ 128.73 0.8811
FTSE 100
5766.95
100.67
FTSE 250
11426.29
170.89
FTSE ALL SHARE
2997.65
50.29
DOW
13115.54
194.13
NASDAQ
3042.82
54.42
S&P500
1390.78
21.21
Brown (N.) Group . . . . .226.7 4.3 304.5 221.0
Carpetright . . . . . . . . . .609.0 -4.0 741.0 375.0
Debenhams . . . . . . . . . .80.6 0.8 82.7 51.2
Dignity . . . . . . . . . . . . .836.5 10.5 854.5 725.0
Dixons Retail . . . . . . . . . .17.3 0.6 19.9 9.4
DunelmGroup . . . . . . .510.0 2.0 533.0 389.0
Halfords Group . . . . . . .291.0 0.1 405.9 268.6
Home Retail Group . . . .107.3 2.6 228.5 72.5
Inchcape . . . . . . . . . . . .370.0 10.8 425.4 268.1
JD Sports Fashion . . . . .801.5 0.0 1030.0 570.0
Kesa Electricals . . . . . . . .59.7 0.7 151.4 58.7
Kingsher . . . . . . . . . . .305.2 3.8 313.8 217.0
Marks & Spencer G . . . .358.7 -9.0 402.2 301.8
Next . . . . . . . . . . . . . .2954.0 18.0 3060.0 2153.0
Sports Direct Int . . . . . . .281.3 3.9 296.1 190.0
WHSmith . . . . . . . . . . .535.0 1.5 559.0 451.6
Smith & Nephew . . . . .622.5 17.0 694.0 521.0
Synergy Health . . . . . . .830.5 -13.5 981.0 809.5
Barratt Developme . . . .135.9 2.6 151.5 67.5
Bellway . . . . . . . . . . . . .801.5 10.0 859.5 540.5
Berkeley Group Ho . . .1283.0 -5.0 1414.0 1025.0
Bovis Homes Group . . .470.5 -2.6 518.5 326.5
Persimmon . . . . . . . . . .640.5 14.5 706.5 374.0
Balfour Beatty . . . . . . . .274.6 2.7 333.7 214.6
CRH . . . . . . . . . . . . . . .1279.0 46.0 1665.5 1053.0
Galliford Try . . . . . . . . . .617.0 5.0 628.0 383.8
Kier Group . . . . . . . . . .1180.0 48.0 1489.0 1095.0
Drax Group . . . . . . . . . .539.0 2.5 581.5 430.4
SSE . . . . . . . . . . . . . . . .1358.0 0.0 1423.0 1193.0
Domino Printing S . . . .596.0 3.5 701.5 434.3
Halma . . . . . . . . . . . . . .401.2 6.5 429.6 306.3
Laird . . . . . . . . . . . . . . . .221.0 3.1 222.3 127.9
Morgan Crucible C . . . . .324.0 -9.9 360.0 224.0
Oxford Instrument . . .1228.0 17.0 1262.0 714.0
Renishaw . . . . . . . . . . .1335.0 35.0 1886.0 800.0
Spectris . . . . . . . . . . . .1834.0 16.0 1845.0 1039.0
Aberforth Smaller . . . .635.0 7.0 714.0 494.0
Alliance Trust . . . . . . . .368.9 5.2 392.7 310.2
Bankers Inv Trust . . . . .419.7 4.2 433.8 346.5
BH Global Ltd. GB . . . . .1175.0 11.0 1212.0 1070.0
BH Global Ltd. US . . . . . . .11.8 0.2 12.2 10.6
BH Macro Ltd. EUR . . . . . .19.4 -0.1 20.2 16.4
BH Macro Ltd. GBP . . .2033.0 -5.0 2078.0 1681.0
BH Macro Ltd. USD . . . . . .19.3 0.0 20.2 16.2
BlackRock World M . . .668.0 12.0 805.0 574.5
BlueCrest AllBlue . . . . . .161.5 0.3 176.2 160.6
British Assets Tr . . . . . . .127.7 3.1 139.4 109.0
British Empire Se . . . . . .418.9 6.8 533.0 404.0
Caledonia Investm . . .1420.0 10.0 1800.0 1337.0
City of London In . . . . .294.0 3.3 306.9 257.0
Dexion Absolute L . . . . .141.0 0.4 150.0 130.0
Edinburgh Dragon . . . .245.5 0.5 253.1 201.4
Edinburgh Inv Tru . . . .499.5 8.4 504.0 422.5
Electra Private E . . . . . .1687.0 12.0 1755.0 1287.0
Fidelity China Sp . . . . . . .79.1 0.3 114.3 70.0
Fidelity European . . . . .1114.0 13.0 1287.0 912.0
Foreign and Colon . . . .308.7 2.2 327.9 261.5
Herald Inv Trust . . . . . . .515.0 5.0 545.5 419.0
HICL Infrastructu . . . . . .123.6 0.5 123.6 112.7
John Laing Infras . . . . .106.7 0.0 110.6 103.8
JPMorgan American . . .925.0 5.0 965.5 721.5
JPMorgan Asian In . . . .196.5 2.8 244.0 170.1
JPMorgan Emerging . . .555.0 1.5 610.5 480.1
JPMorgan Indian I . . . . .351.3 3.4 451.5 313.1
JPMorgan Russian . . . .550.0 -1.0 689.0 415.1
LawDebenture Cor . . . .382.4 5.6 398.7 323.0
Mercantile Invest . . . . .1012.0 21.0 1119.0 823.0
Merchants Trust . . . . . .379.5 8.0 431.8 341.5
Monks Inv Trust . . . . . . .332.1 3.9 367.9 298.1
Murray Income Tru . . . .649.0 4.0 674.0 568.0
Murray Internatio . . . . .972.0 12.0 1012.0 818.5
NB Global Floatin . . . . .100.5 0.9 103.0 92.5
Perpetual Income . . . . .271.5 3.7 276.0 236.5
Personal Assets T . . .34190.0 30.0 35350.0 31387.5
Polar Capital Tec . . . . . .387.7 2.7 404.0 299.5
RIT Capital Partn . . . . .1183.0 22.0 1360.0 1152.0
Scottish Inv Trus . . . . . .481.0 8.1 524.0 417.0
Scottish Mortgage . . . .703.5 5.5 781.0 565.0
SVG Capital . . . . . . . . . .287.0 3.0 295.5 165.1
Temple Bar Inv Tr . . . . .930.5 9.0 970.0 791.0
Templeton Emergin . . .586.0 6.5 678.5 497.0
TRProperty Inv T . . . . . .151.3 4.3 206.1 136.2
TRProperty Inv T . . . . . .66.6 0.8 94.0 59.8
Witan Inv Trust . . . . . . .484.1 8.3 533.0 401.5
3i Group . . . . . . . . . . . . .194.5 2.4 294.1 166.9
3i Infrastructure . . . . . . .124.7 0.1 125.2 115.5
Aberdeen Asset Ma . . .270.0 1.2 274.9 167.8
Ashmore Group . . . . . . .387.1 -0.6 420.0 306.4
Brewin Dolphin Ho . . . .167.0 2.5 177.0 113.7
Camellia . . . . . . . . . . .9765.0 -60.0 10950.0 8800.0
Charles Taylor Co . . . . . .152.0 2.5 160.0 115.6
City of London Gr . . . . . .72.0 0.0 88.5 61.3
City of London In . . . . .369.3 -2.3 440.0 304.3
Close Brothers Gr . . . . .739.5 15.0 820.0 590.0
F&C Asset Managem . . .65.9 0.4 81.7 56.1
Hargreaves Lansdo . . . .471.5 15.2 646.5 402.5
Helphire Group . . . . . . . . .1.8 0.0 14.0 1.4
Henderson Group . . . . .121.4 0.7 163.7 95.1
Highway Capital . . . . . . .13.0 0.0 21.0 7.0
ICAP . . . . . . . . . . . . . . . .377.8 8.6 524.0 311.6
IG Group Holdings . . . . .457.1 3.2 502.5 393.6
Intermediate Capi . . . .259.8 3.5 345.0 197.9
International Per . . . . .240.2 -0.7 388.8 148.5
International Pub . . . . .119.9 0.3 121.5 112.7
Investec . . . . . . . . . . . .360.2 10.5 522.0 318.4
IP Group . . . . . . . . . . . . .140.3 1.8 141.0 36.0
Jupiter Fund Mana . . . .237.9 4.7 310.5 184.9
Liontrust Asset M . . . . . .113.3 -0.9 125.0 57.9
LMS Capital . . . . . . . . . . .59.0 0.0 64.8 54.0
London Finance & . . . . .19.5 0.0 23.5 19.0
London Stock Exch . . .1068.0 22.0 1076.0 756.5
Lonrho . . . . . . . . . . . . . . .12.0 -0.3 19.8 8.9
Man Group . . . . . . . . . . .107.5 2.4 259.6 104.5
Paragon Group Of . . . . .183.1 4.6 206.1 134.6
Provident Financi . . . . .1154.0 25.0 1181.0 915.0
Rathbone Brothers . . .1288.0 23.0 1316.0 977.0
Record . . . . . . . . . . . . . . .11.4 1.6 35.5 9.8
RSM Tenon Group . . . . . . .7.8 -0.3 34.8 5.6
Schroders . . . . . . . . . .1479.0 37.0 1906.0 1183.0
Schroders (Non-Vo . . . .1127.0 -8.0 1554.0 970.0
Tullett Prebon . . . . . . . .341.4 9.3 427.3 262.3
Walker Crips Grou . . . . . .45.5 0.0 51.5 40.0
BT Group . . . . . . . . . . . .219.7 4.0 232.1 161.0
Cable & Wireless . . . . . . .30.1 -0.6 48.9 30.1
Cable & Wireless . . . . . . .36.1 -0.6 55.0 14.2
COLT Group SA . . . . . . . .98.0 0.5 151.8 84.1
KCOM Group . . . . . . . . . .72.0 1.8 84.0 59.8
TalkTalk Telecom . . . . . .133.2 0.7 150.0 118.9
TelecomPlus . . . . . . . .680.0 -1.0 802.0 470.0
Booker Group . . . . . . . . .83.0 0.7 85.3 59.5
Greggs . . . . . . . . . . . . . .516.0 -0.5 558.0 445.0
Morrison (Wm) Sup . . .296.1 2.1 328.0 277.0
Ocado Group . . . . . . . . . .111.2 3.8 237.0 52.9
Sainsbury (J) . . . . . . . .309.2 4.0 362.8 263.5
Tesco . . . . . . . . . . . . . . .328.3 7.4 420.1 310.5
Associated Britis . . . . .1222.0 19.0 1233.0 977.0
Cranswick . . . . . . . . . . .818.0 10.5 841.0 588.5
Dairy Crest Group . . . . .310.3 0.3 409.7 303.0
Devro . . . . . . . . . . . . . . .316.9 5.6 332.2 232.0
Tate & Lyle . . . . . . . . . .689.0 1.5 720.5 544.5
Unilever . . . . . . . . . . .2065.0 27.0 2189.0 1892.0
Mondi . . . . . . . . . . . . . .572.0 15.5 664.0 413.5
Centrica . . . . . . . . . . . . .318.0 -0.8 333.0 278.8
International Pow . . . . .416.9 0.1 417.1 279.4
National Grid . . . . . . . .650.0 4.5 659.0 569.0
Pennon Group . . . . . . .730.5 7.5 737.5 623.5
Severn Trent . . . . . . . .1606.0 28.0 1610.0 1375.0
United Utilities . . . . . .604.0 6.0 637.0 560.0
Cookson Group . . . . . . .736.0 19.5 737.0 395.8
Rexam. . . . . . . . . . . . . .438.0 11.8 439.2 299.8
RPC Group . . . . . . . . . . .366.3 -3.5 393.2 300.5
Smith (DS) . . . . . . . . . . .173.6 4.7 183.7 113.3
Smiths Group . . . . . . .1048.0 11.0 1340.0 869.5
Price Chg High Low
Reckitt Benckiser . . . . .3612.0 52.0 3620.0 3100.0
Redrow . . . . . . . . . . . . .126.7 -0.3 135.3 103.5
Taylor Wimpey . . . . . . . .50.7 0.9 52.8 28.7
Bodycote . . . . . . . . . . .400.7 6.4 426.5 225.6
Fenner . . . . . . . . . . . . . .434.2 9.7 483.7 280.0
IMI . . . . . . . . . . . . . . . . .960.5 28.0 1119.0 636.5
Melrose . . . . . . . . . . . . .429.2 10.1 434.9 268.0
Northgate . . . . . . . . . . .196.0 6.0 342.0 188.5
Rotork . . . . . . . . . . . . .2118.0 47.0 2123.0 1501.0
Spirax-Sarco Engi . . . .2253.0 45.0 2264.0 1649.0
Weir Group . . . . . . . . .1703.0 40.0 2236.0 1375.0
Evraz . . . . . . . . . . . . . . .377.2 12.7 460.5 315.0
Ferrexpo . . . . . . . . . . . .293.9 7.7 499.0 238.7
Talvivaara Mining . . . . .225.0 3.0 538.5 195.2
BBA Aviation . . . . . . . .209.0 -1.0 223.4 156.0
Stobart Group Ltd . . . . .125.6 -0.5 149.5 112.0
Admiral Group . . . . . . .1196.0 22.0 1754.0 787.0
Amlin . . . . . . . . . . . . . . .337.0 12.3 427.0 270.6
Beazley . . . . . . . . . . . . . .141.4 2.3 151.8 109.6
Catlin Group Ltd. . . . . . .420.5 7.6 449.0 337.0
Hiscox Ltd. . . . . . . . . . . .395.7 5.7 424.7 340.5
ITV . . . . . . . . . . . . . . . . . .88.1 3.3 89.9 51.7
Johnston Press . . . . . . . . .6.0 0.0 8.2 4.1
MecomGroup . . . . . . . .160.0 -1.0 310.0 134.5
Moneysupermarket. . . .135.7 1.2 135.9 88.7
Pearson . . . . . . . . . . . .1133.0 9.0 1255.0 1038.0
PerformGroup . . . . . . .301.0 1.0 317.2 150.0
Reed Elsevier . . . . . . . . .527.5 0.5 578.0 461.3
Rightmove . . . . . . . . .1499.0 33.0 1500.0 1002.0
STV Group . . . . . . . . . . . .113.1 0.0 168.0 76.3
Tarsus Group . . . . . . . . .144.5 0.0 165.0 119.5
Trinity Mirror . . . . . . . . . .33.3 -0.5 54.3 32.8
UBM . . . . . . . . . . . . . . . .601.0 -2.5 641.5 416.0
UTVMedia . . . . . . . . . . .154.5 4.6 155.5 92.5
Wilmington Group . . . . .93.8 -2.6 151.0 78.5
WPP . . . . . . . . . . . . . . .863.0 19.5 880.0 578.0
Yell Group . . . . . . . . . . . . .3.5 0.0 11.0 3.4
African Barrick G . . . . . .361.6 7.5 616.5 342.9
Anglo American . . . . .2328.5 101.0 3181.0 2138.5
Anglo Pacic Gro . . . . .304.0 8.6 340.0 237.9
Antofagasta . . . . . . . . .1176.0 56.0 1491.0 900.5
Aquarius Platinum. . . . .137.4 7.9 360.0 128.6
Avocet Mining . . . . . . . .165.9 2.7 286.8 161.0
BHP Billiton . . . . . . . . .1926.5 34.0 2560.0 1667.0
Bumi . . . . . . . . . . . . . . .562.5 -0.44 575.5 554.0
Centamin (DI) . . . . . . . . .63.5 0.5 144.4 62.5
Jardine Lloyd Tho . . . . .679.0 10.0 764.5 576.0
Lancashire Holdin . . . . .807.5 10.5 810.5 618.5
RSA Insurance Gro . . . . .103.9 1.9 139.8 99.6
Aviva . . . . . . . . . . . . . . .307.6 9.3 450.3 275.3
Legal & General G . . . . .124.2 3.4 135.0 89.8
Old Mutual . . . . . . . . . . .155.4 3.2 164.6 98.1
Phoenix Group Hol . . . .529.0 -3.0 688.0 451.1
Prudential . . . . . . . . . . .743.0 21.0 797.5 509.0
Resolution Ltd. . . . . . . .239.0 0.9 316.1 229.5
St James's Place . . . . . .345.7 10.3 376.0 294.0
Standard Life . . . . . . . .226.8 6.5 250.7 172.0
4Imprint Group . . . . . .280.5 1.5 312.5 200.0
Aegis Group . . . . . . . . . .179.5 4.4 187.4 115.7
Bloomsbury Publis . . . . .110.1 1.3 138.0 91.3
British Sky Broad . . . . .659.5 12.0 850.0 618.5
Centaur Media . . . . . . . .35.0 -1.8 56.3 32.5
Chime Communicati . .209.0 3.0 298.5 163.0
Creston . . . . . . . . . . . . . .64.0 -0.9 121.0 47.0
Daily Mail and Ge . . . . .423.8 -20.8 505.5 343.4
Euromoney Institu . . . .758.5 8.5 809.5 522.5
Future . . . . . . . . . . . . . . . .11.8 0.5 20.0 8.3
Haynes Publishing . . . .195.0 0.0 255.0 190.0
Huntsworth . . . . . . . . . .48.8 0.5 76.3 32.3
Informa . . . . . . . . . . . . .437.5 12.7 451.0 313.9
ITE Group . . . . . . . . . . . .224.1 2.5 258.0 157.7
Eurasian Natural . . . . .575.5 16.0 937.5 522.0
Fresnillo . . . . . . . . . . . .1573.0 13.0 2150.0 1302.0
GemDiamonds Ltd. . . .269.8 3.9 310.6 179.8
Glencore Internat . . . . .409.8 9.1 531.1 348.0
Hochschild Mining . . . .488.3 2.4 630.0 365.9
Kazakhmys . . . . . . . . . .897.5 23.5 1405.0 730.0
Kenmare Resources . . . .49.2 -0.7 61.5 31.0
Lonmin . . . . . . . . . . . .1030.0 47.5 1646.0 941.0
NewWorld Resourc . . .426.2 17.7 1060.0 404.0
Petra Diamonds Lt . . . .160.4 1.6 189.0 97.0
Petropavlovsk . . . . . . .503.0 13.2 913.0 480.3
Polymetal Interna . . . .988.0 2.5 1175.0 877.0
Randgold Resource . .5490.0 -60.0 7565.0 4580.0
Rio Tinto . . . . . . . . . . . .3517.5 77.5 4595.0 2712.5
Vedanta Resources . . .1214.0 52.0 2366.0 928.0
Xstrata . . . . . . . . . . . . .1129.5 29.5 1550.0 764.0
Inmarsat . . . . . . . . . . . .431.5 9.8 620.0 389.3
Vodafone Group . . . . . .172.5 2.5 182.7 155.1
Genesis Emerging . . . .498.5 8.5 543.5 424.0
Afren . . . . . . . . . . . . . . .143.0 8.5 171.0 73.6
BG Group . . . . . . . . . . .1426.5 26.5 1547.0 1144.0
BP . . . . . . . . . . . . . . . . .452.5 9.6 504.6 363.2
Cairn Energy . . . . . . . . .335.1 8.1 515.1 291.9
EnQuest . . . . . . . . . . . . .123.4 -0.2 140.0 85.7
Essar Energy . . . . . . . . .149.8 2.5 461.0 101.6
Exillon Energy . . . . . . . .130.0 6.0 469.7 121.7
Heritage Oil . . . . . . . . . .146.5 10.3 262.1 133.1
Ophir Energy . . . . . . . . .532.5 27.0 532.5 184.5
Premier Oil . . . . . . . . . .384.4 8.0 500.8 310.0
Royal Dutch Shell . . . .2166.0 43.0 2402.0 1883.5
Royal Dutch Shell . . . .2214.0 43.0 2489.0 1890.5
Ruspetro . . . . . . . . . . . .199.0 -1.0 230.0 125.0
Salamander Energy . . .240.1 -0.9 302.8 182.3
Soco Internationa . . . .296.0 10.1 397.5 266.2
TullowOil . . . . . . . . . . .1483.0 32.0 1601.0 945.5
Amec . . . . . . . . . . . . . . .1118.0 47.0 1207.0 740.5
Hunting . . . . . . . . . . . .906.0 16.0 968.0 530.0
Kentz Corporation . . . .422.8 -0.1 508.0 375.0
Lamprell . . . . . . . . . . . . .321.8 2.7 395.2 220.7
Petrofac Ltd. . . . . . . . .1740.0 30.0 1772.0 1108.0
Wood Group (John) . . .715.0 21.5 763.5 469.9
Burberry Group . . . . . .1492.0 -94.0 1600.0 1092.0
PZ Cussons . . . . . . . . . .330.3 11.3 387.9 285.0
Supergroup . . . . . . . . .596.0 -4.0 1600.0 435.2
AstraZeneca . . . . . . . .2839.5 38.5 3194.0 2543.5
BTG . . . . . . . . . . . . . . . .359.4 5.1 365.0 236.8
Genus . . . . . . . . . . . . . .1272.0 -1.0 1368.0 853.5
GlaxoSmithKline . . . . .1435.5 8.0 1497.0 1205.0
Hikma Pharmaceuti . . .659.0 2.5 869.0 555.5
Shire Plc . . . . . . . . . . .2001.0 21.0 2300.0 1818.0
Capital & Countie . . . . . .198.1 7.1 203.7 154.5
Daejan Holdings . . . . .3250.0 1.0 3300.0 2282.0
F&C Commercial Pr . . . .103.8 0.3 108.0 92.6
Grainger . . . . . . . . . . . .106.7 3.3 133.2 77.3
London & Stamford . . . .113.0 2.0 140.0 103.9
Savills . . . . . . . . . . . . . .349.7 -5.2 427.1 256.2
UK Commercial Pro . . . . .73.5 0.2 85.5 65.1
Big Yellow Group . . . . .279.5 3.1 344.4 218.0
British Land Co . . . . . . .484.0 13.9 629.5 444.0
Capital Shopping . . . . .325.8 9.0 408.6 288.7
Derwent London . . . . .1726.0 37.0 1880.0 1400.0
Great Portland Es . . . . .358.5 7.7 445.0 312.9
Hammerson . . . . . . . . .410.3 5.8 490.9 345.2
Hansteen Holdings . . . . .77.0 1.8 89.5 68.0
Land Securities G . . . . . .717.5 10.0 885.0 612.0
SEGRO . . . . . . . . . . . . . .227.7 0.7 329.6 195.0
Shaftesbury . . . . . . . . .493.4 11.2 539.0 441.2
Aveva Group . . . . . . . .1666.0 44.0 1799.0 1298.0
Computacenter . . . . . . .437.3 -2.8 490.0 324.7
Fidessa Group . . . . . . .1560.0 -30.0 2109.0 1444.0
Invensys . . . . . . . . . . . . .197.2 8.0 340.6 180.9
Logica . . . . . . . . . . . . . . . .82.1 3.5 144.8 59.0
Micro Focus Inter . . . . .468.0 2.6 476.7 242.9
Misys . . . . . . . . . . . . . . .349.0 0.6 420.2 214.9
Sage Group . . . . . . . . . .283.2 -3.2 312.4 231.7
SDL . . . . . . . . . . . . . . . . .710.5 -10.5 756.0 586.0
Telecity Group . . . . . . . .764.5 5.5 776.5 450.5
Aggreko . . . . . . . . . . .2239.0 53.0 2316.0 1522.0
Ashtead Group . . . . . . .242.2 1.5 271.1 99.4
Atkins (WS) . . . . . . . . . .740.0 6.5 820.0 490.2
Babcock Internati . . . . .829.5 14.5 835.0 570.5
Berendsen . . . . . . . . . . .530.5 8.5 568.0 402.7
Bunzl . . . . . . . . . . . . . .1026.0 19.0 1028.0 676.5
Cape . . . . . . . . . . . . . . .384.8 16.8 591.5 295.0
Capita . . . . . . . . . . . . . .748.0 12.5 767.0 611.5
Carillion . . . . . . . . . . . .280.0 5.0 403.2 273.9
De La Rue . . . . . . . . . . .897.5 -0.5 1001.0 730.0
Diploma . . . . . . . . . . . . .436.1 7.0 453.0 284.0
Electrocomponents . . .236.0 2.1 294.9 182.2
Experian . . . . . . . . . . . .982.0 7.0 996.5 665.0
Filtrona PLC . . . . . . . . . .481.6 0.6 484.8 296.3
G4S . . . . . . . . . . . . . . . .288.9 1.0 292.1 219.9
Hays . . . . . . . . . . . . . . . .92.5 4.4 119.6 58.9
Homeserve . . . . . . . . . .227.0 3.0 532.0 214.7
Howden Joinery Gr . . . .119.3 0.5 130.8 93.1
Interserve . . . . . . . . . . .286.9 6.1 341.3 255.0
Intertek Group . . . . . .2549.0 53.0 2570.0 1744.0
Michael Page Inte . . . .440.6 5.6 567.0 323.0
Mitie Group . . . . . . . . . .283.7 -1.9 288.3 202.1
PayPoint . . . . . . . . . . . .650.0 3.0 670.0 450.0
Premier Farnell . . . . . . .210.0 4.4 301.0 144.5
Regus . . . . . . . . . . . . . . .114.1 0.7 117.5 64.0
Rentokil Initial . . . . . . . .89.0 2.9 100.9 58.2
RPS Group . . . . . . . . . . .229.4 0.9 253.0 156.6
Serco Group . . . . . . . . .553.0 15.0 597.5 458.0
Shanks Group . . . . . . . . .95.0 1.8 130.9 90.2
SIG . . . . . . . . . . . . . . . . .109.0 1.7 153.5 77.0
Travis Perkins . . . . . . .1063.0 14.0 1125.0 715.0
Wolseley . . . . . . . . . . .2412.0 57.0 2558.0 1404.0
ARM Holdings . . . . . . . .599.0 0.0 645.0 464.0
CSR . . . . . . . . . . . . . . . . . .211.1 -0.5 391.4 154.1
Imagination Techn . . . .693.5 7.0 717.0 296.9
Spirent Communica . . .164.5 -2.6 172.8 105.8
British American . . . .3149.5 14.5 3248.5 2524.0
Imperial Tobacco . . . .2447.0 -31.0 2591.0 1974.0
Betfair Group . . . . . . . . .812.0 -0.5 901.0 567.0
Bwin.party Digita . . . . . .157.7 1.5 174.0 100.6
Carnival . . . . . . . . . . . .1974.0 32.0 2642.0 1742.0
Compass Group . . . . . .654.0 11.5 671.0 512.5
Domino's Pizza UK . . . .425.0 5.0 526.0 377.0
easyJet . . . . . . . . . . . . .487.5 7.4 495.8 302.5
FirstGroup . . . . . . . . . . .203.7 6.2 370.2 195.8
Go-Ahead Group . . . . .1147.0 22.0 1598.0 1125.0
Greene King . . . . . . . . . .513.5 1.5 523.5 410.0
InterContinental . . . . .1463.0 17.0 1497.0 955.0
International Con . . . . .175.0 3.6 258.7 132.0
Ladbrokes . . . . . . . . . . .164.2 1.3 165.3 114.0
Marston's . . . . . . . . . . . .99.2 0.5 112.0 84.6
Millennium& Copt . . . .485.4 8.0 535.5 371.2
Mitchells & Butle . . . . . .265.2 7.3 336.8 215.6
National Express . . . . .230.7 5.7 270.2 201.6
Rank Group . . . . . . . . . .120.0 -1.0 153.7 109.5
Restaurant Group . . . . .287.9 0.9 335.0 254.9
Spirit Pub Compan . . . . .55.5 1.3 62.8 35.3
Stagecoach Group . . . .249.4 8.9 287.4 220.0
TUI Travel . . . . . . . . . . . .198.5 4.5 250.0 136.7
Wetherspoon (J.D. . . . .416.0 10.9 468.3 380.5
Whitbread . . . . . . . . . .1872.0 31.0 1874.0 1409.0
WilliamHill . . . . . . . . . .259.9 0.8 265.0 183.3
Abcam. . . . . . . . . . . . . .359.0 1.0 460.0 320.0
Advanced Medical . . . . .78.6 0.1 95.0 64.8
Albemarle & Bond . . . .323.0 -2.0 400.1 281.0
Amerisur Resource . . . . .24.3 0.0 29.0 9.5
Andes Energia . . . . . . . .34.0 -11.0 82.8 17.5
Andor Technology . . . .510.0 10.0 685.0 445.3
Archipelago Resou . . . . .62.9 0.3 79.0 56.5
ASOS . . . . . . . . . . . . . .1594.0 -6.0 2468.0 1142.0
Aurelian Oil & Ga . . . . . . .21.5 0.0 71.0 16.0
Avanti Communicat . . .246.3 2.8 499.8 241.3
Blinkx . . . . . . . . . . . . . . .43.8 0.8 158.0 41.3
Borders & Souther . . . . .69.5 -0.5 80.5 43.5
BowLeven . . . . . . . . . . . .84.0 2.0 343.0 62.0
Brooks Macdonald . . .1330.0 12.5 1372.5 940.0
Cluf Gold . . . . . . . . . . . .83.3 2.3 112.8 66.5
Cove Energy . . . . . . . . .224.5 0.0 242.0 61.0
Daisy Group . . . . . . . . . .112.5 1.0 127.0 95.0
EMIS Group . . . . . . . . . .552.5 7.5 580.5 397.5
Faroe Petroleum . . . . . .172.0 3.0 182.0 130.0
Gulfsands Petrole . . . . .139.8 -0.8 311.0 126.0
GWPharmaceutical . . . .89.0 -2.5 130.0 78.5
H&T Group . . . . . . . . . . .295.6 -2.4 395.0 281.3
Hargreaves Servic . . . .1245.0 15.0 1258.0 855.0
Healthcare Locums . . . . . .2.2 0.1 2.2 2.1
ImpellamGroup . . . . . .350.0 0.0 382.6 225.0
Iomart Group . . . . . . . . .137.5 3.0 151.0 85.5
James Halstead . . . . . .520.0 -7.5 535.0 410.3
London Mining . . . . . . .267.3 3.8 436.5 257.5
Lupus Capital . . . . . . . . .118.5 -1.5 150.0 86.0
M. P. Evans Group . . . . .473.5 3.3 480.0 371.0
Majestic Wine . . . . . . . .472.0 12.8 510.0 315.0
May Gurney Integr . . . .247.5 -6.6 302.0 239.9
Monitise . . . . . . . . . . . . .35.8 -0.3 40.0 22.8
Mulberry Group . . . . . .2145.0 -36.0 2250.0 1290.0
Nanoco Group . . . . . . . . .67.5 3.0 90.0 38.0
Nautical Petroleu . . . . .332.0 8.0 398.5 223.5
Nichols . . . . . . . . . . . . .663.0 3.0 667.5 482.5
Numis Corporation . . . . .87.5 -1.5 119.6 72.0
Pan African Resou . . . . . .15.8 -0.5 18.3 9.5
Patagonia Gold . . . . . . .36.0 -2.5 70.0 35.0
Prezzo . . . . . . . . . . . . . . .68.0 -1.5 71.5 53.5
Rockhopper Explor . . . .354.0 4.0 393.5 141.0
RWS Holdings . . . . . . . .525.0 15.0 560.0 385.0
Secure Trust Bank . . . .1077.5 0.0 1077.5 755.0
Sirius Minerals . . . . . . . .20.3 0.8 32.0 6.4
Songbird Estates . . . . . .118.0 10.3 160.3 103.0
Valiant Petroleum . . . . .567.5 -10.5 628.5 400.0
Young & Co's Brew . . . .629.0 -1.0 712.0 580.0
Heritage Oil . . . . . . . . . . . . . . . . .146.5 7.6
Afren . . . . . . . . . . . . . . . . . . . . . .143.0 6.3
Aquarius Platinum . . . . . . . . . . .137.4 6.1
Ophir Energy . . . . . . . . . . . . . . .532.5 5.3
Antofagasta . . . . . . . . . . . . . . . .1176.0 5.0
Hays . . . . . . . . . . . . . . . . . . . . . . .92.5 5.0
Exillon Energy . . . . . . . . . . . . . . .130.0 4.8
Lonmin . . . . . . . . . . . . . . . . . . .1030.0 4.8
Barclays . . . . . . . . . . . . . . . . . . .220.6 4.6
Cape . . . . . . . . . . . . . . . . . . . . . .384.8 4.6
Burberry Group . . . . . . . . . . . .1492.0 -5.9
Daily Mail and Gen . . . . . . . . . . .423.8 -4.7
AG Barr . . . . . . . . . . . . . . . . . . . .1145.0 -3.2
Morgan Crucible Co . . . . . . . . . .324.0 -3.0
Marks & Spencer Gr . . . . . . . . . .358.7 -2.5
Cable & Wireless C . . . . . . . . . . . .30.1 -2.1
Fidessa Group . . . . . . . . . . . . . .1560.0 -1.9
Synergy Health . . . . . . . . . . . . .830.5 -1.6
Spirent Communicat . . . . . . . . .164.5 -1.6
Cable & Wireless W . . . . . . . . . . . .36.1 -1.6
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
Price Chg High Low Price Chg High Low
GILTS
http://corporate.webfg.com
mailto:
globaltechsales@webfg.com
Tsy 5.250 12 . . . . . .100.64 -0.02 105.0 100.7
Tsy 9.000 12 . . . . . .102.56 0.00 110.4 101.3
Tsy 2.500 13 . . . . . .283.70 0.01 287.7 282.8
Tsy 4.500 13 . . . . . . .103.58 -0.03 106.4 103.5
Tsy 8.000 13 . . . . . . .110.89 -0.05 116.4 110.8
Tsy 5.000 14 . . . . . . .110.89 -0.09 112.9 110.0
Tsy 8.000 15 . . . . . .126.62 -0.17 129.2 124.8
Tsy 4.750 15 . . . . . . .113.92 -0.17 115.4 110.2
Tsy 4.000 16 . . . . . . .113.55 -0.22 114.7 106.9
Tsy 2.500 16 . . . . . . .344.91 -0.20 345.7 320.7
Tsy 12.000 17 . . . . . .118.97 0.00 127.9 117.8
Tsy 1.250 17 . . . . . . . .116.74 -0.32 117.1 109.4
Tsy 8.750 17 . . . . . . .139.90 -0.56 141.9 134.9
Tsy 5.000 18 . . . . . . .121.47 -0.39 122.5 112.3
Tsy 4.500 19 . . . . . . .120.21 -0.38 120.9 108.3
Tsy 3.750 19 . . . . . . .115.20 -0.42 115.9 102.5
Tsy 2.500 20 . . . . . . .367.71 -0.40 369.3 326.5
Tsy 4.750 20 . . . . . .122.64 -0.44 123.5 109.6
Tsy 8.000 21 . . . . . . .151.23 -0.49 153.9 137.2
Tsy 1.875 22 . . . . . . .128.40 -0.58 129.2 114.8
Tsy 4.000 22 . . . . . . .116.87 -0.56 118.2 102.1
Tsy 2.500 24 . . . . . .330.85 -0.61 334.7 286.2
Tsy 5.000 25 . . . . . .128.08 -0.62 130.6 111.0
Tsy 1.250 27 . . . . . . .124.59 -0.77 127.0 107.4
Tsy 4.250 27 . . . . . . .119.04 -0.69 122.7 101.4
Tsy 6.000 28 . . . . . .143.27 -0.68 148.0 123.4
Tsy 4.125 30 . . . . . . .314.84 -0.67 322.8 270.1
Tsy 4.750 30 . . . . . .125.20 -0.68 130.5 106.7
Tsy 4.250 32 . . . . . . .117.53 -0.74 123.1 99.9
Tsy 4.250 36 . . . . . . .117.01 -0.81 123.9 99.3
Tsy 4.750 38 . . . . . .126.39 -0.83 134.2 107.8
Tsy 4.500 42 . . . . . . .122.71 -0.87 130.8 104.1
% %
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M
Y NEIGHBOUR Debbie buys
Lotto tickets. At least, she
pays for them. She
deputises the job of going
to the corner store and
selecting the numbers to her ten-
year-old son Wayne.
Wayne receives a base wage of
50p for putting in the time and he
can also earn a performance-related
bonus. If he successfully returns
from the store with ten Lotto
tickets, Debbie pays him another
50p (without this incentive, he was
inclined to come home with no
ticket and sticky fingers).
Or she used to pay him this
bonus. Last week Debbie came to
notice that Wayne has never
selected jackpot-winning numbers.
A
REPORT commissioned by the
government and released
yesterday has given the green
light to the extraction of shale
gas. The report concludes that
hydraulic fracturing (fracking), a
technology that pumps water and
chemicals underground to fracture
shale formations in order to release
trapped gas, is safe but requires tight
regulation and seismic monitoring.
The impact of the governments
endorsement could be dramatic for
Britains energy policy. According to
estimates of the International Energy
Agency, globally there is enough natu-
ral gas for the next 120 years at current
rates of consumption. Supplies of
unconventional gas could provide us
with this cheap and relatively clean
energy for another 250 years or more.
Energy crisis? What energy crisis?
The drilling company Cuadrilla esti-
mates that shale exploration in the
North West alone could contribute
5bn to 6bn to the local economy
over the next 30 years through job cre-
ation and business taxes. Yet there are
other large shale formations in other
cityam.com/forum
North Sea reserves
could yet turn the UK
into one of the worlds
top gas producers
In association with
THEFORUM
Twitter: @cityamforum on the web: cityam.com/forum or by email: theforum@cityam.com
Agree? Disagree? Got a sharp comment?
The Forumwants you to join the debate.
Top responses will be reprinted in The Forum.
24
BENNY PEISER
Its true: Theres a real danger that
fracking will cause a major boom
parts of the country that may be even
bigger than the Bowland shale.
And then theres the North Sea.
According to the British Geological
Survey, UK offshore shale reserves
could be five to 10 times as high as
onshore. That would be enough to
turn the UK into one of the worlds top
gas producers. No wonder a growing
number of MPs want the North Sea to
be at the heart of a new offshore shale
gas industry. Even the Energy and
Climate Change Committee has rec-
ommended that the government
should encourage the development of
offshore shale gas drilling.
With energy imports reduced, the
UK would gain significantly from a
shale gas revolution: cheaper energy
would make UK manufacturing more
competitive, gas and electricity bills
would fall and the rising trend in fuel
poverty could be reversed.
Shale gas fracking has already
revived US oil and gas production,
yielding an overabundance of cheap
natural gas. The US passed Russia in
2009 as the largest producer of natural
gas in the world. In 2010 natural gas
contributed more than $500bn
(314bn) to the US economy. In the
process, 2.8m jobs were created.
Because of the potential scale of UK
shale drilling, significant levels of
employment would be created or sup-
ported across a broad range of job sec-
tors. Energy-intensive industries and
manufacturers now considering relo-
cating their operations abroad due to
increasing energy costs will also be
more likely to stay.
Britains looming shale revolution is
a clear victory for those of us who have
argued that renewable energy is eco-
nomically unsustainable and that the
exploration of shale gas can provide a
huge potential boost to both UK indus-
try and British households.
The governments endorsement of
shale gas, together with its gradual
rollback of unpopular green schemes
and expensive renewables subsidies,
comes as a massive blow to the green
lobby, which is suffering the longest
losing streak for a generation.
Shale gas exploration would be a
major blow for the British renewable
energy industry, which would see
investment hijacked by a new dash for
gas, Greenpeace warned in response
to the new report. Large-scale shale
gas extraction is completely incompat-
ible with the urgent issue of tackling
climate change, the WWF com-
plained.
Undoubtedly, a British gas glut
would make renewables even less
competitive. Initially, green campaign-
ers were supportive of natural gas.
Then they realised that it was under-
mining subsidies for renewables
which are now drying up fast.
However, cheap and abundant gas is
not only competing with green ener-
gy, but also with coal and nuclear.
We used to regard gas as a transition
fuel, energy minister Charles Hendry
MP said recently. We now under-
stand that it is in fact a destination
fuel.
Britains climate and energy policy
now faces a huge opportunity. With a
little bit of luck, a shale investment
boom could materialise over the next
few years. It would do wonders for the
governments severely dented reputa-
tion over its energy policies. As the
shale industry gets the green light to
steam ahead, it is almost inevitable
that we will see the evolution of a
more pragmatic and less zealous
approach to the green agenda.
Benny Peiser is the director of the Global
Warming Policy Foundation.
So she has changed his incentive
scheme. The 50p bonus is now
withheld until the results are
announced. Only if Debbie wins
over 1m will Wayne receive his
bonus. She expects this to improve
his number selection.
Debbie may seem to be an
unusually foolish woman. But she
is no more foolish than financial
sector regulators. Keen to improve
the decision making of bankers,
regulators now demand that their
performance-related pay be
deferred until we can know for sure
how their decisions have turned
out. Or, as they like to put it,
compensation payout schedules
must be sensitive to the time
horizon of the risks.
To keep matters simple, imagine
two corporate bankers, Jack and Jill.
Both make 100m five-year loans to
firms rated BBB: that is, firms with
a 0.4 per cent chance of defaulting
in the five-year period. Assuming
that they also priced these loans
the same, Jack and Jills
performance is identical.
Now suppose that Jacks client
turns out to be one of the few BBB
firms that defaults. Then Jill will
get her bonus but Jack will not.
Their bonuses are not performance-
based but luck-based. Which makes
this incentive scheme as silly as
Debbies scheme for Wayne. You
cannot improve decision making by
basing rewards on facts that are
unknowable when the decision is
made.
Banks insure themselves against
the risks of the business they do,
mainly by holding capital as a
buffer against potential losses. The
cost of this insurance is charged to
loans or other risky deals when
they are made. If a deal still
registers a profit, then the
employee who arranged it has done
all he can. There is no point
deferring his bonus; everything
that might affect his performance
is over and done with.
Wayne has reacted to Debbies
revised bonus scheme by
demanding higher base pay. Since
his chance of winning a 50p bonus
is now 1 in 15m, he has completely
discounted it and is back to a base
wage of 1. On Monday he returned
home without a Lotto ticket.
Similarly, under their new bonus
regime, bankers have demanded
base salaries that make up a greater
portion of their total pay. Hooray
for the regulators new and
improved performance-related pay!
Jamie Whyte is a senior fellow of the
Cobden Centre.
AGAINST
THE GRAIN
JAMIE WHYTE
Luck-based pay makes decision making a lottery it doesnt improve it
TOULON, COTE DAZUR, FROM 93 ONE WAY
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25
Kept in plain sight
[Re: Plain packaging: a charter for
counterfeiters, yesterday]
Plain packs are much easier to counterfeit.
Slim cigarettes are rarely counterfeited
because their pack design is of a non-
standard size, and their artwork is difficult
to reproduce without professional printing
equipment. Plain packs standardise all pack
sizes. This will increase the counterfeiters'
charter no end and counterfeit cigarettes
are incredibly dangerous. Does the
government want to put smokers at risk?
We mustnt allow government-sanctioned
theft of property rights so that the nannies
of tobacco control can use someone else's
property to promote their messages. Its
against freedom, fairness, and rule of law.
JayMorgan
No need to wait
[Re: Your call is very important, Monday]
While easyJet welcomes independent
surveys, conducted transparently and in a
statistically rigorous way, this survey on call
centre waiting times was neither
transparent or statistically rigorous. The
results dont reflect customer waiting times,
which we constantly monitor to ensure our
customers receive a good service. In the last
six months we have answered over half a
million calls to our UK call centre number.
On average, over 80 per cent of customers
wait less than sixty seconds to speak with
one of our customer service team and only 5
per cent of customers wait approximately
two minutes or more.
CatherineLynn, customer andrevenuedirector
at easyJet
F
EW readers of City A.M. may
have lost sleep over the
chancellors decision in the
recent Budget to impose a 15
per cent stamp duty land tax
(SDLT) on acquisitions of homes
costing over 2m by non-natural
persons. After all, why shouldnt
we clamp down on the purchase of
residential properties through
companies, collective investment
schemes and the like isnt this
just the tax-dodging mechanism of
choice for super rich non-doms
hoovering up British homes?
There is some sense in what the
government is trying to achieve. It
doubtless ticks populist boxes too.
But the Treasury should not be
blind to the potential funding hole
this policy is creating.
The property development
industry in and around Central
London generates significant tax
revenues. Not only are the profits
taxable here, but irrecoverable VAT
is incurred on redevelopment
projects and developers generate
SDLT revenues by buying and
reselling redeveloped properties.
The Budget press release said
that the 15 per cent SDLT charge
would not apply to developers, as
they tend to use companies for
limited liability rather than tax
avoidance reasons. When the draft
legislation was published, however,
the relief for developers was
limited to those who have had a
residential property development
business for at least two years.
While a two-year requirement
will deter individuals who wish to
use a property from establishing a
short life development company
as a means of mitigating their
stamp duty, this qualifying period
will also discriminate against new
property development businesses.
Prospective new entrants into the
TOP TWEETS
The silence around freedom, liberty and
privacy is, I agree, a disgrace. We will pay
heavily for our collective apathy.
@RFairbrass
How often has Labour had a larger vote
share than the coalition parties combined?
@RyanCPS
Recent government blunders sum up why
Ill struggle to ever vote for the
Conservatives again.
@Stevegav
Tube strikes a week before the London
vote. Another political disaster for Ken
Livingstone.
@AdrianLuscombe
Is Anders Behring Breiviks televised trial
giving too much publicity to an extremist?
YES
I cannot imagine how the family and friends of those who were
killed last July can watch Anders Breivik justify his actions in the
on-going court case in Oslo. I find it difficult enough and I am not
directly connected to the case. Its tragic hes getting so much
publicity. I dont think we should ban his words from being
heard. Even if he was not heard, his views would still be
circulated on the internet. But these views are now getting too
much publicity, and we must refute them. We must confront the
politics of hate and remind people of the horrors of what he did.
In this trial, Breivik is enjoying his moment of fame. This was all
part of his plan, after all. We need to do much more to remove
the mysticism around Breivik and remind everyone at every
opportunity that he is just a cowardly cold-blooded killer of
children and young people.
Nick Lowles is coordinator of Hope Not Hate.
Nick Lowles
NO
Tom Welsh
Breiviks appearance on our TV screens wont change many minds.
Beyond our initial abhorrence at seeing this pastiche fascist
(permablond hair, closed-fist salute) claiming self-defence as
justification for mass murder, his trial will remind us of the tragedy
of Utoeya and not its perpetrator's twisted reasoning. It is right
that Norway should see Breivik visibly brought to justice. This trial
will be no party political broadcast for anti-Marxist-Islamists, or
whatever it is Breivik claims to be, but an essential part of that
judicial process. Breivik's delusions will be publicly undermined,
even if the man himself won't recognise his faults. Some may fear
that were giving oxygen to a new, powerful charisma. But Nick
Griffins failed appearance on Question Time, in 2009, should
remind us that enemies of democracy and freedom are rarely able
to broadcast their support beyond a narrow, humiliating rump.
Tom Welsh is financial features writer at City A.M.
RAPIDresponses
New property tax
rules will stamp
on UK developers
market are likely to be priced out,
because their acquisition costs will
be 8 per cent higher than their
competitors.
The 15 per cent charge is likely to
present a real issue for experienced
developers as well. The scarcity of
bank finance on development
properties at the moment means
that much of the funding for high-
end residential development is
coming from equity investors. The
requirements of these equity
investors will often mean that
standalone Special Purpose
Vehicles (SPV) are established for
individual projects so once again,
the statutory test will not be met.
An alternative policing approach
that avoids creating a dual market
might be to impose a second charge
another 7 per cent or the balance
of the 15 per cent if a property is
used before being sold on by the
developer, with SDLT. Alternatively,
it could be time-based a second
charge if the property has not been
sold after, say, three years.
As ever with intricate taxation
policy changes, success will rest on
getting the detail right. In the case
of SDLT, I fear that the unintended
consequence of a superficially
attractive policy might be yet
another funding hole for the
Treasury to fill.
Mark Field is the Conservative MP for
the Cities of London & Westminster and
chairman of the All-Party Parliamentary
Group on Private Equity and Venture
Capital.
MARK FIELD
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on one of todays columns? Do you have another subject you
want to share your opinion on? We want to hear your views.
Email theforum@cityam.com or comment at cityam.com/forum
T
O MARK 100 days to go, Populous, the official
architectural and overlay design services provider
for London 2012, showed us how this summers
venues will look in use. Populous has 10 Olympics
in its portfolio and is currently working on 35 of the
London 2012 venues.
The temporary venues have been designed with the city
as a backdrop. Greenwich Park provides one of the most
brilliant, with the Citys buildings towering on the hori-
zon. Meanwhile Horse Guards Parade will become a
unique stadium, that incorporates Londons historic
architecture as a backdrop for the beach volleyball.
Londons existing sporting venues are also being used,
but sometimes in unexpected ways. Lords cricket
ground will host archery, with temporary stands closing
in on the shooter, emphasising the sense of theatre.
East Londons river Lea will provide some of the less
well-known venues, including the canoe slalom course
and the Riverbank Arena, where hockey and Paralympic
football will be played on a blue artificial pitch.
LONDON2012
26
London will star in
100DAYS TO GO
With just a few months until the summers Olympic Games
Lords, London 2012 Archery Venue
Horse Guards Parade, London 2012 Olympic Beach Volleyball Venue
27
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the Games
cityam.com
the capital is set to dazzle in 2012
Lee Valley White
Water Centre,
London 2012
Canoe Slalom
Centre
Temporary venues are
designed to use the city
as a backdrop to the action
London 2012 Riverbank Arena, Hockey venue

Greenwich Park,
London 2012
Equestrian and
Modern Pentathlon
Venue
P
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:

P
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HE Olympics isnt just about
sport. Under the banner of the
Cultural Olympiad, London will
also host a multi-month arts
festival. The London 2012 Festival
will run from 21 June (Midsummers
Day) until 9 September the last day
of the London 2012 Paralympic
Games. There will be something to
tempt anyone who first turns to the
lifestyle rather than the sports pages.
High profile events at reasonable
prices abound. Blurs Damon Albarn
and director Rufus Norris are team-
ing up with the English National
Opera for Dr Dee based on the influ-
ential Elizabethan political adviser,
mathematician, magician and scien-
tist, running from 25 June-7 July.
Shakespeares Globe will be packed
with plays by the greatest ambassa-
dor for British culture, as it plays host
to the biggest celebration of William
Shakespeare ever staged with thou-
sands of artists from around the
world taking part in almost 70 pro-
ductions of the bard of Avons work.
For its part, the Society of London
Theatre is offering 10 tickets to a
number of West End shows includ-
ing The Phantom of the Opera, The 39
Steps and Mamma Mia. If you work in
a crowded area, bear it in mind, as the
scheme is intended to encourage com-
muters to avoid rush hour.
But these suggestions only graze the
surface. The London 2012 Festival
offers 10m free opportunities to get
involved in the Games without going
near a sports venue. Unless you dont
like art, carnivals, comedy, dance,
fashion, film, food, music or theatre
there will be something for you.
The fly in the ointment could be the
great British weather with plenty of
these events taking place outdoors.
But the memory of thousands of Brit-
wielded umbrellas coating Hyde Park
for Pavarotti in 1991 is an indication
that rain is unlikely to stop the music
playing. For sports and culture fans, it
will be a summer to remember.
Visit www.festival.london2012.com to
find out whats on.
The Traction festival is bringing top European performers to Granary Square this summer
London 2012 Festival will see a dream list of events from midsummer until September
28
cityam.com
LONDON2012 100 DAYS TO GO
Its party time:
Something for
every Londoner
London 2012 will be the first-
ever Olympic Games broadcast
live in 3D, so even if you dont
have a ticket, the Games can
still seem closer than ever. The
BBC is promising to screen the
opening and closing ceremonies
and the mens 100m final, but if
you are a Sky+ HD subscriber,
you could watch up to eight
hours of live footage a day.
Panasonic is the audio-visual
sponsor and its special cameras
and recording format will
provide the 3D signal. Its team
is quietly confident about its
technology, but says that 3D
requires careful camerawork.
If you bought a new TV
recently, it may well be 3D-
ready, even if you havent used
the capability yet. If so, this
summer is the ideal time to
experience immersive 3D. Ralph
Higson, Panasonics director of
the London Olympic project
says Close up at a finish line,
watching the athletes come
towards you, especially on a
plasma screen, is really
something else.
Live 3D will bring
the Games to you
ON SATURDAY 14 July, 3,000
people will be treated to a cross-
cultural musical collaboration of Europes
hippest performers in Londons Granary
Square. Eurostar will be bringing
together some of the most exciting acts
from across the continent for a one-day
festival, all picked by the eclectic
London-based DJ, record collector and
label owner Gilles Peterson.
German jazz techno ensemble Brandt
Brauer Frick, a trio whose rousing tracks
are rhythmically focused with the
mechanical precision of four-to-the-floor
club tracks, and French favourite
Sbastien Tellier, famous for tracks like La
Ritournelle and Divine, are already
booked to perform.
Visit www.europe.eurostar.com/
eurostar-traction to find out more.
Join Gilles Petersen for a Euro-stars festival
L
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Why global Olympic sponsorship
is a sustainable investment for GE
GE has renewed its
Olympic partnership:
Its UK chief executive
talks to Marc Sidwell
Q
What was your brands
primary reason for being
involved with the Games?
A
We became an Olympic
sponsor before I became chief
executive in the UK, and that
was a decision made at head
office level. The first Games where
GE was a worldwide partner was
the 2006 Winter Olympics in Turin.
We announced at the end of last
year our agreement to renew the
partnership for both the Olympics
and Paralympics for the next four
Games Sochi, Rio, Pyeongchang in
South Korea and the 2020 Games.
We own 49 per cent of NBC, which
has had the US network rights to
the Olympics for many years and
has itself just extended its network
coverage for the next four
Olympics. So we had already seen
through one of our divisions just
what a phenomenal event the
Olympics is, how it involves every
nation, how it brings the world
together every four years. I think
our chairman and the board
thought that this was an ideal
platform on which to promote our
brand and company. We had a
strong US brand for historical
reasons but were less well-known
globally.
Q
How was the case for
involvement structured to
the board?
A
There were a number of
factors. It gives us the
opportunity, as an
infrastructure company, to
engage in the development of the
Olympic venues, sometimes in
countries where we have not had a
significant presence. If youre a
company with GEs breadth of
portfolio healthcare, aviation,
energy, lighting the Olympics is
about more than just the venues,
its the whole infrastructure
upgrade that comes with it. Beijing
was a hugely important Games for
us because of the relationship we
developed with the Chinese delivery
agencies and, of course, because of
the nature of China, the whole state
machinery that was involved in it.
COUNTDOWN
TO THE LONDON
2012
OLYMPIC
GAMES
29
Q
Was there any particularly
hard question or issue to
resolve in order to renew your
Olympic sponsorship?
A
Not really. The sponsorship of
the first four Games has
delivered more than we
anticipated it could at the
outset. We often get the question,
why is a primarily infrastructure
company that is an B2B business
supporting an event which
ultimately is the perfect opportunity
for a B2C company to promote its
brand. The answer is because the
opportunities it offers are so diverse
internally and externally.
Q
How have you structured
your business to maximise
Olympic opportunities?
A
Although the decision to
become a global sponsor was a
head office decision, the
delivery of the commercial
opportunity is done by a team that
reports in to me, so they are the ones
who are working with the Olympic
Delivery Authority and the London
Organising Committee on the
technical side of delivering the
technology into the various venues.
That is a huge effort thats been
going on since the Games was
announced. We put a team in place
in the UK in early 2006, even though
it was six years away, because of the
challenge of needing to work with
the whole design team from day one
to make sure that we can deliver the
optimal technology to deliver them
the sustainable venues that we want.
Q
What are the most crucial
commercial opportunities for
you that the Games offers?
A
Were trying to showcase what
a sustainable Olympic venue
can look like and why its
sustainable energy efficiency,
lighting efficiency, water re-use. And
how the technology that we use in
the Games venues can be used to
support any development.
In 2005, we started
ecomagination, our global
sustainability platform. Our view as
a company was that we needed to
support a sustainable structure in
terms of water, energy healthcare,
travel. We wanted to improve our
own profile and set goals as to how
we would be more sustainable as a
company but we realised that we
could also use this as a means of
selling more products if we had
them independently certified as
achieving certain set goals around
carbon emissions and energy
intensity. In 2010, we looked back at
our performance over five years and
we sold $70bn (43.9bn) of certified
equipment. In the Olympic Park, if
you take the energy centre were
supplying, its the same engine
thats also powering St Thomass
Hospital and the Shard and the
National Gallery. That is an eco-
certified product because it is
hugely more efficient St Thomass
is saving over $1.5m a year on its
energy bills.
Q
What legacy projects are you
supporting around the
London Games?
A
We always want to support the
communities in which the
event takes place. We delivered
over $10m of neonatal
equipment to Homerton Hospital,
around which it has built a new
unit. Were also relighting Tower
Bridge with EDF, and that work will
be completed by May, transforming
the bridge with new LEDs.
As well as technology that will
remain in the venues and the
athletes village, we also supply
technology for the polyclinic,
including some of the most recent
scanners, such an extremity MR,
which is designed so you can scan
just one limb. These will be available
for the athletes, and then afterwards
that equipment will stay behind and
go on to various locations to support
sports medicine in the UK.
Mark Elborne is president and chief execu-
tive for GE UK and Ireland.
LONDON2012 100 DAYS TO GO OLYMPICBUSINESSQ&A
Mark Elborne is
making sure GEs
involvement in
London leaves a
lasting legacy
G
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D
IVERSITY is often a word
thrown around in business
without much thought. Too
often, diversity is seen as a
presentational device: something
that looks good in a corporate social
responsibility report. What does
our company look like? is the
question thats asked.
True diversity isnt about that at
all. Its not about how a company
looks; its about how a company
thinks, how its processes work, and
how it manages its human capital.
True diversity is about getting the
most out of a business, taking advan-
tage of creative tension, and making
sure the way a company does busi-
ness doesnt miss out on the full
potential of the talent it has and the
talent it intends to recruit in the
future.
For the modern finance function,
getting a handle on diversity is par-
ticularly important. A post-financial-
crisis combination of a broadening
role and a renewed focus on finance
fundamentals creates a highly
diverse set of responsibilities for the
finance team; all the while, busi-
nesses are becoming increasingly
global in their approach and pres-
ence.
To be effective, the modern finance
function needs a team of individuals
with different experiences, different
skills, and different ways of think-
ing.
There are several key ways that
finance leaders can make diversity
work for their teams: they need to
understand cultural differences;
they need to recruit effectively; they
need to develop diversity where it
doesnt already exist; and they need
to embrace more open ways of work-
ing.
PROCESS
Some of the necessary steps to be
taken may seem quite obvious, but
they are often not put into practice.
A finance leader with a finance func-
tion spread around the globe might
recognise that the team in one coun-
try is different to the team in anoth-
er, but these differences arent
necessarily reflected in the way
teams are expected to operate.
Embracing the differences between
teams is important, says Robert
Mello, the chief financial officer of
GE Healthcare China: Once you
have respect for and an appreciation
of differences, not necessarily think-
ing of one as better than the other,
then you can really start working on
Diversity is about far more than
making your company look nice
getting the best out of people and sit-
uations wherever you are based.
Likewise, a more open, collabora-
tive way of working within a team
may be recognised as an option, one
of many management styles, but
with an evolving finance function,
its imperative that finance leaders
are ready to be challenged and listen
to the views of those around or below
them a collaborative approach that
makes the most of a teams diverse
experiences and skills is needed.
Some finance leaders are already
getting the message, especially when
it comes to applying the softer man-
agement skills, according to Andrew
Kakabadse, professor of international
management development at
Cranfield Universitys School of
Management. Its amazing to see
how many people at Cranfield are
now coming on to the emotional-sen-
sitivity-type programmes to help
them cope with their job as a senior
manager of finance, he says.
PEOPLE
As well as process, people manage-
ment matters too when it comes to
developing a diverse team: bringing
in the right type of people and pro-
viding existing staff with a diverse
range of experiences.
Diversity starts with recruitment,
so finance functions need to work
very closely with human resources
teams to search out the right type of
team member. Recruitment can be
particularly tricky issue for the
finance function given the technical
skills and qualifications required of
team members. Compounding this is
the fact that, too often, finance func-
tions use a short-term approach to
recruitment, hiring to fill specific
vacancies without too much thought
to what that role or individual might
require or offer five years down the
line.
However, even if a finance team
hasnt necessarily recruited the most
diverse team members, there are
ways to nurture diversity within the
team. To do this, finance functions
need to shift from viewing career tra-
jectories as career ladders to career
lattices: managers from developed
markets should be given the oppor-
tunity to spend time in emerging
markets and vice versa. Experience
outside the finance function is cru-
cial and a commercial role can be
valuable in developing business expe-
rience and awareness. Job rotations
might meet resistance from man-
agers who dont want to lose good
staff; support from the top is vital to
ensure job rotation becomes part of a
businesss DNA.
According to group chief talent offi-
cer Datin Badrunnisa Mohd Yasin
Khan, this is the approach taken by
Axiata, one of Asias largest telecoms
companies: When we look for
finance leaders, we try to play down
their functional strengths once they
reach a certain level and get them
more rounded in terms of business
experience. Of course, were looking
for people who have grown up with
the finance discipline, but that alone
is not enough. We really want some-
one with a more developed business
sense. If you leave someone in a func-
tion for too long, it wont help with
innovation because they end up
being too focused on following the
rules.
DIVERSITY VERSUS STANDARDISATION?
One other diversity problem that par-
ticularly impacts on the finance
function is how it sits alongside the
need to achieve greater efficiency.
Over the past few decades, as global
footprints have expanded, the
finance function has sought out the
benefits that can be gleaned from
outsourcing or shared services
according to consultants Everest
Group, over 70 per cent of Fortune
500 companies use shared services or
outsourcing for their finance func-
tions; these bring cost and efficiency
advantages but often at the expense
of in-country resource. Here, the trick
is getting the balance right.
Diversity and standardisation are
not incompatible, but businesses
need to think carefully about activi-
ties that need to be standardised and
those that benefit from diversity.
According to Stevan Rolls, head of
human resources at Deloitte, some
activities in the finance function need
to be robust and repeatable and so are
good candidates for standardisation
other activities require local treat-
ment or are more complex and so
require on-the-ground expertise.
Finance is a function in which there
are places where you want innovation
and places where you dont want
innovation. The key is deciding which
is which.
It might be easy to portray diversity
as a luxury that must be balanced
against efficiency, but it is vital that
businesses and finance functions see
diversity as capable of bringing value
to business in its own right. A finance
function that embraces diversity and
values different perspectives and
experiences stands to gain an edge
over its rivals.
For more on diversity and the finance
function, please see ACCAs latest report,
Building a Better Business through Finance
Diversity online at: www.accaglobal.com/
en/research-insights.html
ANDREW LECK
All the colours of the brainbow
Head of ACCA UK
30
ACCOUNTINGBUSINESS
cityam.com
Making the most of diverse ways of thought is central to getting your business to perform at its full potential
Finance leaders can
make diversity work by
embracing more open
ways of working
Experience outside
the finance function is
essential; a commercial
role can be valuable
Spain has little cause for a fiesta

G
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cityam.com
FOREIGN EXCHANGE MANAGEMENT WEALTH
THE TIPSTER
Cable pulling higher
The pound is trading near critical levels
against the US dollar. Cable has rallied
strongly since mid-January and has
continually found support on a sharply-
rising trend line. It is now managing to
hold above both its 50 and 100-day
moving averages around the $1.5835/40
area. However, the pound is now
nudging up against resistance at
$1.5960, and a failure to break above
here would point to the formation of a
bearish head and shoulders pattern. But
for now the momentum is to the upside,
and this will be reinforced if todays
release of minutes from the last MPC
meeting are more hawkish than
expected. GFT quotes sterling-dollar
at $1.5958-$1.5960
The Canadian dollar has been on a
downer over speculation that the
Eurozone debt situation is worsening,
which could make the currencies of
countries that export raw materials less
attractive. The pound has so far rallied
130 pips against the loonie to Ca$1.5930,
but many traders will be anticipating
Bank of Canadas interest rate decision,
which is expected to remain at 1 per cent.
As long as Ca$1.587 remains a support
level, the pair could continue to move
higher. Capital Spread quotes sterling-
Canadian dollar at
Ca$1.5908-Ca$1.5918
Having tested the 0.8220 support and
hitting 18-month lows on Monday the
single currency has bounced back
against the pound with the 0.8250 and
then the 0.8270 levels the key
resistance to further upside. Above that
the 0.8300 is elusive. Another break
below 0.8220 could see 0.8140
retested last seen in August last year.
Above the 0.8300 level the 55-day MA
should cap gains around the 0.8350
level. CMC Markets gives a spread of
0.82400-0.82407 for euro-sterling.
The brief piercing of $1.300 in euro-
dollar on Monday triggered buyers into
action and caught some late shorts on
the hop on Monday afternoon as it
rebounded hard back over $1.3100.
Despite the better than expected EU
ZEW economic sentiment figures and
good European bond auctions yesterday,
the pair failed to gain any traction above
the key pivot area of $1.3150 and looks
like it wants to resume its attempt to get
back under $1.300. Look to sell euro-
dollar around $1.3150 with a stop just
above $1.3200 for another run at $1.300.
Spread Co quotes euro-dollar at
$1.31493-$1.31511.
With the price of dollar-yen sitting
below its resistance and the technicals
pointing towards a sell, currency traders
will be looking to see if the Japanese
Merchandise Trade Balance being
released this evening can outweigh the
thin data from the US. Capital Spreads
quotes a price of 80.654-80.662.
With euro-Aussie dollar rising for a
second consecutive day yesterday, the
question is now whether slowing
Chinese growth will continue to worry
investors in this currency pair more than
a newly-revitalised Eurozone crisis.
Faced with an expected reduction in the
explosive expansion of the Chinese
economy, euro-Aussie dollar managed to
make decent gains throughout March.
But now, with Spain teetering on the
brink, Italy not far behind, and Greece
and Portugal loitering in the
background, will investors now decide
that the Aussie is the safer bet, even with
the China story looking rockier by the
day? IG Indexs price on euro-Aussie
dollar is Au$1.2690-Au$1.2700.
CRAIG DRAKE
A
S THE European turmoil
continues, why isnt the
euro falling to pieces
before our eyes? With
Eurozone policy makers blundering
from one crisis to the next at best
covering up the cracks in the fiscal
superstructure, at worst knocking
out a supporting wall you might
be forgiven for expecting the euro to
have gone Zimbabwean. Greece
remains on the critical list, but the
focus has now fallen on Spain as
yields on Iberian debt seem to be
heading out of control. The
International Monetary Fund has
backed the European Central Banks
(ECB) unconventional policies to
address banks funding and
liquidity problems in the form of
its Long Term Refinancing
Operation (LTRO), despite it largely
failing to gain any meaningful long-
term traction. But despite all this,
the euro has held up quite robustly
against its major pairs.
The current crisis highlights a
number of important points that FX
traders should bear in mind. Though
it may sound obvious, the bond mar-
kets are not the same as the curren-
cy markets they work on different
fundamentals and risk pricing. Take
a look at the below chart for the
stark disconnect between euro-dol-
lar and bond spreads since 2008 to
illustrate this. At the same time, it is
important to differentiate between
the politico-economic structure of
the Eurozone and the euro as a cur-
rency and as a tradeable financial
instrument while the political
structure has seen little success, the
euro as a currency instrument has
had better fortunes.
EURO BUYERS
So why does the euro still have tak-
ers when European sovereign debt is
being dumped by the truckload?
Firstly, the Fed, other central banks
and sovereign wealth funds are in
the market for euros to hedge
against contagion risks to the US
and to other economies. At the same
time, the financial crisis has turned
the FX markets into an ugly dog con-
test, and with the US making little
headway in addressing its deficit
woes, the greenback is inflicting lit-
tle damage to the euro. If institu-
tions and sovereign wealth funds
dump their euro holdings, the truth
of the matter is that there isnt
much else on the shelf to choose
from.
Finally, it is impossible to overstate
the determination of those at the
centre of the European single cur-
rency to preserve their creation. The
Eurozone is unsustainable in its cur-
rent state, and it is inevitable that it
will move towards ever closer fiscal
union if it wishes to sustain its mon-
etary union, even if that means
shedding its weaker periphery coun-
tries.
POLITICS AND TRADING
The Eurozone is a divisive issue and
something that everybody has an
opinion on. But it is important not
to let that cloud your vision when
trading. If you are sceptical about
the concept of a European monetary
union, the temptation is to be overly
bearish towards the euro. But this is
a mistake and can leave you open to
being side-swiped by the realities of
the currency markets. Trade what
you see in your charts and not what
you want to see and your trading bal-
ance will stand less risk of going
Greek.
CRAIG DRAKE
During the Napoleonic
Wars, the long-running
guerrilla campaign between the
French and Spanish was dubbed
the Spanish ulcer. Now it seems
CHRIS BEAUCHAMP
IG INDEX
MIKE VAN DULKEN
ACCENDO MARKETS
as if the Eurozone has acquired its very own Iberian problem,
one that might possibly be too big to solve. Having escaped
scrutiny for the first few months of 2012, Spain has exploded
back onto the scene, with bond yields surging and talk of
bailouts in the air once again. Investors seem to have decided
that the latest round of budget cuts will be impossible to
achieve, with the twin problems of rising unemployment and a
shrinking economy effectively nullifying the effects of debt
reduction. Hopes run high that the ECB will step in with some
sort of renewed liquidity operation, but this is a holding action
at best, and everyone knows that even if a bailout of Spain is a
possibility, it would completely exhaust the financial firepower
of the EU and leave Italy at risk as the next target. Spain faces
the same problems as Greece and Portugal, where the
implementation of austerity measures simply deepens the
hole and makes it more difficult to stage a recovery. The
Eurozone avoided disaster in Greece by the slimmest of
margins; it might not be so lucky in Spain.
Since early March, when Spain
revised up its 2012 budget
deficit target from 4.4 per cent to 5.8
per cent well above Europes new 3
per cent limit market concerns have
seen the Ibex equity index decline most in Europe, and the euro
fall back against peers. New PM Rajoys transparency may be a
welcome change compared to muddied messages from other
troubled capitals. However, with its 10-year bond yields back
up near levels markets associate with bailout, the ice on which
Madrid is skating may be thawing fast. Todays long-term debt
auction could be key not just for Spain, but Europe as a
whole. The effects of the ECBs two floods of cheap money to
improve liquidity and bring down sovereign bond yields have
not lasted long. Historical decentralisation of power means
implementing reforms in Spain is hard. The countryside and
banking sector bear the scars of a huge burst property bubble.
50 per cent youth unemployment means prospects are bleak.
Recovery may be possible, but how long it takes is unknown.
As slow as Greece or quick as Ireland? The size of any bailout is
also an unknown. What we can be sure of, though, is that Spain
is not an insignificant continental liability.
We ask our panel for their views on Spains financial future
The importance of separating
politics and currency markets
EURUSD vs Yield Spread from 2008-2012
2008 2009 2010 2011 2012
0
Euro-dollar German 10-Year Bund Yield - Spanish 10-Year Bond Yield
-1
-2
-3
-4
1.6
1.5
1.4
1.3
1.2
Source: FXCM
31
Despite equity markets showing
in the last few days that they
still have some life left in them, the
risk of the European sovereign debt
crisis flaring up again is very much a
real and present danger. Without
growth its hard to see the likes of Spain being able to get itself
out of its precarious position when it is implementing such deep
austerity measures and the bond markets are sending some
warning shots across the bows. The message from the IMF
yesterday was clear in saying that efforts that go too far in
reducing budget deficits risk tipping the balance and seeing an
economic retrenchment that will be impossible to get out of for
years to come.
Yes, it got some short-term debt neatly away yesterday, however
the longer term problems remain. The Eurozone peripheral
nations need to raise some 1.5 trillion in funds over the next
three to four years and bond investors will not make it easy for
them. This is a vast sum that the poxy little EFSF or ESM are
nowhere near to being sufficiently large enough to insure. In
order for Spain to be taken completely out of the equation so that
it does not go the same route as Greece, Ireland or Portugal the
ECB or Germany will have to utilise its firepower.
ANGUS CAMPBELL
CAPITAL SPREADS
Spanish woes threaten
euros fragile stability
C
onventional opinion among
hardcore 911 fans is that the
911 Cabriolet is a lesser car
than the 911 coupe. If the 911 is
the worlds most accomplished
sports car, why monkey around with
it, especially when you know that
taking off a cars roof removes much
of its strength. Without a roof a car
becomes less rigid. You can strength-
en the remaining body but you add
even more weight back, reducing per-
formance and agility.
So if the 911 coupe is for purists,
surely the droptop is for hedonistic
lotus eaters: those who rate style
above substance, laughter above rea-
son?
Porsche is a confident bunch and if
its droptop 911 is to remain in the
shadow of its coupe sibling, it
appears no one has told it. Within
weeks of driving the coupe around
the hills of Santa Barbara, we take an
early flight to Las Palmas, Gran
Canaria before being deposited on a
racetrack adjacent to the Atlantic
Ocean. Its an impressive backdrop.
Within minutes we hop into a 911
Carrera Cabriolet and set off around
the track. There is silence and not
just because were concentrating. An
astonishing amount of tyre and wind
noise is absent from the cabin. We
switch drivers and repeat, then lower
the roof and were off again.
Silence. This time because, really,
the car is just as good as the coupe.
Genuinely, just as good. Okay, maybe
rally legend Walter Rhrl would
notice the difference rather more
than I do but for your average mortal,
the new 911 Cabriolet, with its roof
down, drives as close to the coupe as I
can determine. There is no obvious
deterioration in performance and no
shake or vibrations; or, at least, there
is so little in it as to silence the tradi-
tional purist argument.
We drive the 345bhp 3.4-litre flat
six engine Carrera with a seven-speed
manual gearbox on road and track.
With a 0-62mph acceleration time of
just 5.0 seconds (though 4.6 seconds
is possible with PDK transmission
and the Sport Plus package) this rag-
top proves plenty fast enough on
Gran Canarias public roads and its
fantastically proficient on track too
as it has loads of grip. And with the
roof up, the car looks better than pre-
vious 911 Cabriolet models. Clever
engineering has enabled the fabric
roof to retain the exact shape of the
coupe. This has greatly reduced the
pram-like look of its predecessors,
although the new sleeker nose of the
latest 991 911 means that in droptop
form the rear looks a little bottom-
heavy. Still very beautiful, though.
Roof up and the car is surprisingly
quiet and refined inside. Even with
the roof down, there is almost no
wind buffeting at all, thanks to the
addition of a new electric wind
deflector. One button push and it
unfurls behind you: no more strug-
gling to unfold a wind deflector man-
ually (the automotive equivalent of a
deck chair).
The interior is essentially the same
as the coupe, which is to say its classy
and far more comfortable than a
sportscar has any right to be. The pri-
mary controls are within easy reach,
which means even when youre driv-
ing it quickly it feels effortless. Its a
fast and fantastically well-engineered
machine. I cant help but conclude
that it has more personality than the
coupe. The convertible has one fur-
ther advantage too: the delicious
snap, crackle and pop of its flat-six
engine positively howls under hard
acceleration, something that res-
onates even more deeply when
theres no roof to separate you from
its sonorous pleasure. Maybe the
hedonists are right after all.
The 911 Cabriolet roars like a wonderful banshee
The 911 Cabriolet is a roaring hit
Purists say the 911 coupe is a better car than the Cabriolet. After our racetrack test, were not so sure
32
LIFE&STYLE
cityam.com
MOTORING
CAR TALK
BY RYAN BORROFF
Volvo stays at the head of the safety queue
Volvo has announced prices for its all-new Volvo V40, the first car in
the world to feature an innovative pedestrian airbag to help protect
pedestrians in an impact. The five-door, five-seat premium
hatchback will cost from 19,745 on the road. The D2 version of the
new V40 model has CO2 emissions of 94g/km and 78.5mpg
(combined) is possible.
WORDS BY
RYAN BORROFF
THE VERDICT:
DESIGN hhhhh
PERFORMANCE hhhhh
PRACTICALITY hhhhi
VALUE FOR MONEY hhhhi
THE FACTS:
PORSCHE 911 CARRERA CABRIOLET
PRICE: 79,947
0-62MPH: 5 secs
TOP SPEED: 178mph
CO2 G/KM: 217g/km
MPG COMBINED: 31mpg
Mercedes-Benz unveils details of its ML63 AMG
Mercedes-Benz has said its ML63 AMG will cost 82,995. Powered by
a 525bhp 5.5-litre bi-turbo V8 engine which will see it accelerate
from 0-62 mph in 4.8 seconds the flagship M-Class SUV has a
combined fuel economy of 23.9 mpg, and CO2 emissions of
276g/km. Self-levelling air and sport suspension systems improve
ride and handling.
Citroen Numero 9 concept to hit Beijing show
This is the new Citron Numro 9 concept, which will be unveiled at the
Beijing Motor Show. The executive saloon concept will become the DS9
and will compete against rivals including the BMW 5-series. With an
elegant-looking shooting brake body style, the concept is powered by a
plug-in full-hybrid powertrain; 166mpg and just 39g/km of CO2
emissions are claimed possible.
33
TV & GAMES
cityam.com
T
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BBC1
SKY SPORTS 1
2.55pmLive Test Cricket 10pm
Youre on Sky Sports! 11pmFIFA
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Football 12amUEFA Champions
League Highlights 1amBoots n All
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Boots n All 5amA League Football
5.30am-6amFIFA Futbol Mundial
SKY SPORTS 2
7pmFIFA Futbol Mundial 7.30pm
Live Greyhound Racing 10pm
Boots n All 11pmPool 12amTotal
Rugby 12.30amChampions Tour
Golf 1.30am-2.30amTrans World
Sport
SKY SPORTS 3
7pmKings of the Snow: Skiing and
snowboarding highlights. 7.30pm
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Cage Fighter 10.30pmCage
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5.30pmSnooker: The Welsh Open
7.15pmOlympic Games: Together
to London 7.30pmPhoto Finish
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Jerry Springer
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history of the priestess.
10pmThe Apprentice: Youre
Fired
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Documentary on a Brazilian
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Great Scientists
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
digits1-9 and you must not
use the same digit twice in
a block. The same digit may
occur more than once in a
row or column, but it must
be in a separate block.
COFFEE BREAK
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
WORDWHEEL
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
1 2 3 4 5
6
7 8 9
10
11 12 13
14
15 16 17
18 19
20 21
22 23
16 12 8
45
7 11
23 20
8 6 9
45
17 4 3
7 24
30 10
45
7 9 13
14
14
15
41
5
11
9
21
6
22
6
11
12
38
15
22
19
11
15
38
8
16
10
ACROSS
1 Echo sounder
(acronym) (5)
3 Lawn ower (5)
7 Inventory (4)
9 Public speaker (6)
10 Belonging to that
woman (4)
11 Approach (4)
12 Grilled food on a
skewer, served with
peanut sauce (5)
15 Kindly endorsement
and guidance (5)
17 Essence (4)
19 Foot-covering (4)
20 Alight (6)
21 Racing sled for one
or two people (4)
22 Identication tab (5)
23 Underground tunnels (5)
DOWN
1 Thin sliver of
wood (6)
2 Change (5)
4 Expect (5)
5 Back garden (4)
6 Owned (9)
8 Figure (5)
13 Au revoir (5)
14 Shouts of
approval (6)
16 Feed as in a
meadow or
pasture (5)
17 Bohemian
dance (5)
18 Bucket (4)
R
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4

M A U V E P A N I C
E I M A M A A
C A N N Y L O Y A L
C A S N V
A G R I C U L T U R E
U G I I O
S T O R Y T E L L E R
O E E L U
B E A T S B A N K S
E S T E W D T
R I P E N F O R T Y
5 9 2 5 9
4 8 7 9 6 2 3 1
3 7 7 1 4 3 5 2
1 6 4 6 9 8 4
2 9 8 5 9 8
3 5 8 1 2 4 6
1 6 2 7 5 1
8 5 9 7 1 8 2
6 1 3 9 7 8 9 3
9 4 7 6 9 8 7 5
2 6 7 1 2
4
4
4
4
4
4
4
4
4
The nine-letter word was
INEXACTLY
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BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5
THE APPRENTICE
BBC1, 9PM
The teams enter the keep-fit business,
devising new programmes reflecting
the popularity of recent dance and
weight-based gym classes.
OUR FOOD
BBC2, 8PM
The team explores Kents local food,
and Giles Coren finds out what British
beer tasted like before hops arrived
from Europe.
LIVE UEFA CHAMPIONS LEAGUE
ITV1, 7.30PM
Chelsea v Barcelona (Kick-off 7.45pm).
Adrian Chiles presents coverage of the
semi-final first-leg encounter at
Stamford Bridge.
TVPICK
IN BRIEF
Reading back in Premier League
nFOOTBALL: Reading clinched their
return to the Premier League after four
years with a 1-0 win at Nottingham
Forest last night. Southampton
tightened their grip on second place by
beating Peterborough, almost certainly
consigning West Ham to the play-offs.
Mutai beats typhoid for Marathon
nATHLETICS: Defending champion
Emmanuel Mutai will run in Sundays
London Marathon despite a recent
bout of typhoid. The Kenyan, who set
a course record last year, is seeking a
place at this summers Olympics.
Redpath Sale switch denied
nRUGBY UNION: Gloucester chiefs
have denied departed head coach
Bryan Redpath is set to become
director of rugby at Sale.
BRITAINS Andy Murray toasted the
perfect start to his clay-court season
after thrashing world No30 Viktor
Troicki at the Monte Carlo Masters
yesterday.
Murray took just 67 minutes to
dismiss the Serb 6-0, 6-3 on his least
favoured surface and reach the third
round. The world No4 then returned
to court with brother Jamie to beat
Santiago Gonzalez and Christopher
Kas 6-4, 6-3 in the doubles.
It was a good start, said the Scot,
who faces Julien Benneteau or
Jurgen Melzer next. Normally its
taken a few matches to get used to
clay but today I thought I moved well
from the start and that is
Murray thrives
on Monaco clay
CHELSEA manager Roberto di Matteo
last night landed a psychological
blow ahead of this evenings
Champions League semi-final at
Stamford Bridge, insisting
Barcelona fear his team
more than others.
The Blues are not
fancied to beat the
holders, whom they
have played eight
times in the last eight
seasons, with Di
Matteo admitting he
will need to conjure two
perfect games to reach next
months final.
But they are unbeaten in their last
five encounters Chelseas contro-
versial elimination of 2009 coming
only on away goals and the caretak-
er boss believes that record will be
playing on Catalan minds.
They dont like to play against us.
The results in the past show that,
said Di Matteo. The way we
play is maybe a bit more
difficult for them to
play against. We have
shown on many occa-
sions that we are a
team who can give
them a lot of prob-
lems.
Chelsea have a flaw-
less record at home in
Europe this season, win-
ning five out of five and scoring
16 goals, and are resurgent under the
Italian, challenging again for a top
four Premier League place and
thrashing Tottenham 5-1 on Sunday
to reach the FA Cup final.
Yet they are underdogs for a rea-
son. Despite trailing Real Madrid in
the Spanish top flight, Barca are
widely regarded as the worlds finest,
perhaps ever, and Lionel Messi, their
attacking fulcrum, has scored a
mind-boggling 63 goals for
his club already this term.
Its fair to say we need two perfect
games, added Di Matteo, who ruled
out injured defender David Luiz for at
least a fortnight. But I think, also,
that the fact weve been performing
very well in the last six weeks gives us
the belief we can produce two perfect
games in this match.
Perceived injustice still rankles
among Chelseas players, many of
whom suffered the most painful of
exits three years ago, when Andres
Iniestas injury-time goal purloined a
place in the final.
Referee Tom Henning Ovrebos
refusal to assent to four penalty
claims rubbed salt in the wound and
prompted a tirade that earned Blues
striker Didier Drogba a four-match
European suspension.
Di Matteo played down the notion
of a revenge mission but admitted:
Theres a strong feeling in the team
that they want to do well, that theyre
highly motivated to produce a good
performance against Barca.
Barcelona man-
ager Pep
Guardiola, who dis-
missed suggestions of
replacing Di Matteo in the
summer as fantasy, struck a similar
tone to his opposite number when he
recalled a defining match on his
teams ascent.
A long time has passed, said
Guardiola. I dont think they are
playing for revenge. What you have
lost, is lost. We will both be playing to
try to reach the final in Munich.
Italian insists Messi
and Co do not like
playing his team
34
SPORT
cityam.com/sport
BY SPORTS DESK STAFF
BY FRANK DALLERES
S
WEDENS Carl Pettersson and
Masters runner-up Louis
Oosthuizen shone brightest at
the weekend, while Englands
Luke Donald relinquished his No1
spot in the world golf rankings.
Pettersson played beautifully
throughout the RBC Heritage
Classic in South Carolina, winning
by five shots to land another blow
for the European Tour. Ooistuizen
was equally impressive as he
bounced back from his Augusta
play-off defeat to claim the
Malaysian Open with a three-stroke
victory in a strong field.
Special mention must also go to
Stephen Gallacher, a fellow Scot and
nephew of Bernard, who performed
with great credit in Kuala Lumpur
to take second place.
It would be wrong to read too
much into Oosthuizens immediate
response to his Masters let-down. He
would have entered this event long
ago, so it wasnt a conscious
decision for him to get straight back
in the saddle. The simple fact is he
is playing very well at the moment,
and to do so after a long journey
from America is a fine achievement.
Put next to the heartbreak of
losing a Masters play-off it wont
mean much hes a Major winner
and has gone beyond winning tour
events but its great nonetheless.
Donalds slip from the No1 spot
should also not be overstated, given
that he was knocked off the top by
Rory McIlroy, who did not play this
week. I dont see it as Donald
waning and the rankings wont
mean much until he, McIlroy and
Lee Westwood again play at the
same event probably next months
Players Championship at Sawgrass.
Finally, well done to Carly Booth,
the 19-year-old Scot who won her
first ever professional title at the
Dinard Ladies Open in France. She
came from six shots behind on the
last day before winning a sudden-
death play-off a great win. Her dad
is a former wrestler and also a
very good golfer and she is set for
a very bright future.
Sam Torrance OBE is a multiple Ryder
Cup-winning golfer and media
commentator. Follow him on Twitter
@torrancesam
Rankings mean
little until best
play together
GOLF
COMMENT
SAM TORRANCE
Gallacher finished second in Malaysia
ENGLAND rugby chiefs have
confirmed two further matches on
the summer tour of South Africa,
with Stuart Lancasters men
playing midweek fixtures in
between their three Tests.
On 13 June, four days after the
first Test, an England team will
face an SA Barbarians South outfit
in Kimberley. Then, three days
after the second Test, they meet
SA Barbarians North in
Potchefstroom.
Lancaster, for whom the tour
will be his first since taking
charge, said the extra games
would allow him to trial fringe
players from what is expected to
England fringe players handed
midweek chance in South Africa
be a 40-man squad.
The former Saxons head coach
has said he wants to adopt a Lions-
style model for the trip, which will
be Englands first three-Test visit
to South Africa.
Lancaster is still to complete his
backroom team, however, having
failed to prise Andy Farrell from
Premiership champions Saracens.
BY FRANK DALLERES
Barcelona fear Blues,
Mind games aside, Di Matteo admits Chelsea need to play two perfect games to reach the final
England tour of South Africa
Sat 9 June: First Test, Durban, 4pm BST
Wed 13: SA Barbarians South,
Kimberley, 1.30pm
Sat 16: Second Test, Johannesburg, 4pm
Tue 19: SA Barbarians North,
Potchefstroom, 6.10pm
Sat 23: Third Test, Port Elizabeth, 4pm
5
Chelsea wins from
five games at
home in Europe
this term
63
Club goals scored by
Lionel Messi already
this season
10
Previous meetings,
producing three wins
each and four
draws
G
E
T
T
Y
G
E
T
T
Y
C
HELSEA cannot afford to
merely try to stop Barcelona
and Lionel Messi tonight; they
have to take the game to them
and do so from the very first
moment.
Attempting to nullify Barca is
asking for trouble. The visitors will
end up having the ball for 85
minutes, and that will inevitably
bring goals.
The Blues must try to hit them
early dont wait 10 minutes and
then up the tempo, by which time
the Catalans will have settled any
of their early nerves.
The European champions are
beatable, as results this season in
Spain have shown, but Chelsea will
need the kind of night when they
take an early chance and get their
noses in front.
They did it against Benfica and
Napoli at Stamford Bridge in
previous rounds of this
competition and they can do it
again with top performances
from their senior players.
Roberto di Matteo faces a
dilemma up front between Didier
Drogba and Fernando Torres, both
of whom are in decent form and
pose threats for different reasons.
Torres has a good record against
Barcelona and the added
motivation of playing against a
team from his homeland, while
Drogba boasts experience of
countless big European nights.
DAMAGE
I hope Di Matteo plumps for
Drogba. The Ivorians explosive
power plays to Chelseas strengths
and the high-tempo game I think
they should adopt.
In central midfield, Id rather see
Frank Lampard than Raul Meireles
alongside John Obi Mikel in Di
Matteos 4-2-3-1 system.
This is a big game and Lampard is
a big-game player. Scrappy
moments happen even in these top-
level matches and, when they do,
he tends to pounce.
Lampard will have to rein in his
attacking tendencies a touch,
however, and help Mikel, who
naturally sits deeper, combat the
threat of Messi.
Chelseas best bet is to play a
high defensive line, so that they
press Barca further up the pitch
and deny Messi as much space as
they can to do damage.
John Terrys ability to get his
defenders to drop off at the right
time will be key to this, however.
He will have to manage that back
four like never before.
Trevor Steven is a former England
footballer who played in two World Cups
and a European Championship. He now
works as a scout and media commentator.
35
STRIKER Mario Gomezs last-minute goal gave Bayern Munich a 2-1 win over Real Madrid
in last nights Champions League semi-final and a slender advantage to take to Spain for
next weeks return match. Frank Ribery had put Bayern ahead but Mesut Ozil equalised.
It is fantasy, its hypothetical. I am coach of
Barcelona and they have a good manager
cityam.com
GOMEZ MAKES IT ADVANTAGE BAYERN
says Di Matteo
FOOTBALL
COMMENT
TREVOR STEVEN
Key to beating Catalans lies in Chelsea old guard
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Pep Guardiola dismisses talk of a move to Chelsea
G
E
T
T
Y
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